Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 82

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1B
Chunk 82
---
601

    $
    35,712,109

    Interest-bearing liabilities

    29,010,302

    25,608,958

    21,149,791

    Interest-free funds
     
    $
    11,935,549

    $
    11,992,643

    $
    14,562,318

    Free funds ratio (interest free funds to average earning assets)

    29.15
    %

    31.89
    %

    40.78
    %

    Tax-equivalent yield on earning assets

    5.37
    %

    4.96
    %

    3.26
    %

    Cost of interest-bearing liabilities

    4.03

    3.59

    1.06

    Net interest spread

    1.34
    %

    1.37
    %

    2.20
    %

    Benefit of interest-free funds

    1.17

    1.15

    0.43

    Net interest margin

    2.51
    %

    2.52
    %

    2.63
    %

The Company experienced an increase in net interest income of $80.8 million, or 8.8%, for the year ended December 31, 2024, compared to 2023.  This follows an increase of $6.3 million, or 0.7%, for the year ended December 31, 2023, compared to 2022.  Average earning assets for the year ended December 31, 2024 increased by $3.3 billion, or 8.9%, compared to the same period in 2023.  Net interest margin, on a tax-equivalent basis, decreased to 2.51% for 2024 compared to 2.52% in 2023.     

The Company funds a significant portion of its balance sheet with noninterest-bearing demand deposits.  Noninterest-bearing demand deposits represented 31.6%, 33.9% and 40.6% of total outstanding deposits as of December 31, 2024, 2023 and 2022, respectively.  The decrease in 2024 is driven by the increase in short-term interest rates. As illustrated in Table 3, the impact from these interest-free funds was 117 basis points in 2024