Is UMB Bank In Trouble?
UMB Financial Corporations – Annual Report Publications
Many a Midwesterner wonders this question today! Is UMB Bank In Trouble?
Lately all we can read about these days are banks failing everywhere! Are we in a financial crisis? Now some worry Will Bank of America Collapse?
And many others worry whether or not there is a Hawaii Bank Run? And of course, many others worry about the more local establishments. Will First Republic Bank Fail ?
Below we have a chart showing unrealized depreciation on Hold to Maturity Securities (HTM) for top 100 banks versus equity.
These unrealized losses do NOT become reflected in profits or a deduct to equity via Other Comprehensive Income (OCI) – only in the footnotes! Moreover, we don’t find these losses reflected in stress tests or measures of capital adequacy.
Furthermore a 25 bp (1/4 of 1 percent) increase in rates for a 10-year security causes approximately 2 points in losses (100 par to 98 to reflect yield discount).
Moreover, looks pretty ok for UMB! Not great, but pretty ok! Twice as good as Bank of America!!
However, lately news became not so hot for UMB!
“Moody’s includes UMB Financial among six banks under review for credit downgrade!” source: Moody’s includes UMB Financial among six banks under review – Kansas City Business Journal (bizjournals.com)
So of course, we all know to keep our accounts maxed out at $250,000. As a result of Uncle Sam’s guarantee via FDIC: Federal Deposit Insurance Corporation. Remember any amount above that rests on President Biden’s guarantee. Not quite the same thing.
UMB Bank is a financial institution based in Kansas City, Missouri, that provides a range of banking and financial services to individuals, businesses, and communities in the United States. The bank has a long history dating back to the early 20th century, and it has grown through a combination of organic growth and acquisitions over the years.
Founded in 1913 as City Center Bank in Kansas City, Missouri.
Over the next few decades, the bank expanded its operations, opening additional branches and developing a reputation for providing high-quality customer service.
In 1967, the bank changed its name to United Missouri Bank (UMB) to reflect its growing presence in the state of Missouri. The bank continued to expand through a series of acquisitions, including Missouri State Bank in 1974 and St. Louis-based Boatmen’s Bancshares in 1997. The acquisition of Boatmen’s Bancshares was particularly significant, as it nearly doubled UMB’s size and gave the bank a presence in several new states, including Arizona, Colorado, and Oklahoma.
Moreover, today, UMB Bank has over 100 branches and over 200 ATMs in Missouri, Kansas, Colorado, Arizona, Texas, Illinois, Nebraska, and Oklahoma. Furthermore, the bank offers a range of financial services, including personal and business banking, wealth management, and investment services.
In addition to its core banking operations, UMB Bank is also known for its commitment to corporate social responsibility. Lastly, the bank has a long history of supporting local charities and organizations, particularly in the areas of education, health, and economic development. In conclusion, the bank’s philanthropic efforts are organized through the UMB Foundation, which provides funding and resources to support a range of community initiatives.
Is UMB Bank In Trouble?
