Umb Financial Corporation · NASDAQ:UMBF
Umb Financial — Q4 2017 Earnings Presentation
43 slides from Umb Financial's earnings presentation, Jan 23, 2018
Slide 1: UMB Financial Fourth Quarter 2017
UMB Financial Fourth Quarter 2017 January 23, 2018 Exhibit 99.3
Slide 2: Cautionary Notice about Forward-Looking Statements
Cautionary Notice about Forward-Looking Statements This presentation of UMB Financial Corporation (the “company,” “our,” “us,” or “we”) contains, and our other communications may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These sta
Slide 3: 4Q 2017 Highlights
UMB 4Q 2017 Highlights
Slide 4: Earnings Summary – 4Q 2017
Earnings Summary – 4Q 2017 $ in thousands, except share and per share data; unaudited Non-GAAP adjustments include fair value adjustments on contingent consideration, acquisition and divestiture expenses, non-acquisition related severance expense and the tax impact of these adjustments. See the non-
Slide 5: Earnings Summary – Full Year 2017
Earnings Summary – Full Year 2017 $ in thousands, except share and per share data; unaudited Non-GAAP adjustments include fair value adjustments on contingent consideration, acquisition and divestiture expenses, non-acquisition related severance expense and the tax impact of these adjustments. See t
Slide 6: Net Operating Income Non-GAAP Reconciliation
Net Operating Income Non-GAAP Reconciliation In this presentation, we provide information about net operating income, operating earnings per share-diluted (operating EPS-diluted), operating return on average equity (operating ROE), operating return on average assets (operating ROA), operating nonint
Slide 7: Operating Noninterest Expense & Efficiency Ratio Non-GAAP Reconciliation
Operating Noninterest Expense & Efficiency Ratio Non-GAAP Reconciliation Operating ROE is calculated as net operating income, divided by the Company’s average total shareholders’ equity for the relevant period. Operating ROA is calculated as net operating income, divided by the Company’s average ass
Slide 8: Income from Discontinued Operations – General Operations Non-GAAP Reconciliation
Income from Discontinued Operations – General Operations Non-GAAP Reconciliation (i) Represents fair value adjustments to contingent consideration for the acquisition of Reams. (ii) Represents expenses related to acquisitions. (iii) Represents non-acquisition severance expense related to UMB-legacy
Slide 9: Select Balance Sheet Items
Select Balance Sheet Items $ in thousands, average balances; unaudited Three Months Ended
Slide 10: Consistent Loan Growth
Consistent Loan Growth Average Total Loans 5 Year CAGR 14.7%
Slide 11: Net Charge-Off History
Net Charge-Off History (1) Commercial Loans includes commercial and industrial, commercial credit card, asset-based and factoring loans. (2) Other includes all real-estate related loans (commercial, residential and HELOC) plus consumer loans and DDA charge-offs.
Slide 12: Loan Classification Trends
Loan Classification Trends % of total actual loans
Slide 13: Key Performance Metrics
Key Performance Metrics See slides 6 through 8 for additional disclosures and reconciliations related to these non-GAAP financial measures.
Slide 14: 4Q 2017 Financials
UMB 4Q 2017 Financials
Slide 15: Noninterest Income – 4Q 2017
Noninterest Income – 4Q 2017 Noninterest income increased $1.7 million, or 1.7%, compared to 3Q’17, primarily driven by: a $3.1MM increase in other income largely due to higher company- and bank-owned life insurance income; and increased income from equity earnings on alternative investments; and wh
Slide 16: Noninterest Income Composition – 4Q 2017
Bankcard Fees Noninterest Income Composition – 4Q 2017 Service Charges on Deposit Accounts Trust & Securities Processing Gains on Sales of Securities Other Brokerage Fees Trading & Investment Banking Trust & Securities Processing Composition: ($ in millions) Insurance Fees & Commissions Equity Earni
Slide 17: Noninterest Income – Full Year 2017
Noninterest Income – Full Year 2017
Slide 18: Noninterest Income Composition – Full Year 2017
Bankcard Fees Noninterest Income Composition – Full Year 2017 Service Charges on Deposit Accounts Trust & Securities Processing Gains on Sales of Securities Other Brokerage Fees Trading & Investment Banking Trust & Securities Processing Composition: ($ in millions) Insurance Fees & Commissions Equit
Slide 19: Noninterest Expense – 4Q 2017
Noninterest expense increased $10.7 million, or 6.2%, compared to 3Q’17, driven by: a $5.5MM increase in bonus and commission expense, and a $2.0MM increase in employee benefits related to improved company performance; an increase of $1.5MM in marketing and business development related to timing of
Slide 20: Discontinued Operations Summary – 4Q 2017
Discontinued Operations Summary – 4Q 2017 Components of (loss) income from Discontinued Operations, net of taxes $ in thousands, except share and per share data; unaudited Non-GAAP adjustments include divestiture expense and one-time marketing agent termination costs. See the non-GAAP reconciliation
Slide 21: Noninterest Expense – Full Year 2017
Noninterest Expense – Full Year 2017 Operating noninterest expense, which excludes the impact of fair value adjustments on contingent consideration, acquisition and divestiture expenses and non-acquisition related severance expense, was $171.7 million for the third quarter 2017, a decrease of $4.9 m
Slide 22: High Quality Investment Portfolio
Securities Held to Maturity $1.3 billion at December 31, 2017 Securities Available for Sale $6.3 billion at December 31, 2017 High Quality Investment Portfolio Agencies Corporates Municipals Mortgage-Backed Securities Treasuries Governmental Other Higher Education Healthcare Utility Social Service I
Slide 23: Securities and Loan Statistics
Securities and Loan Statistics AFS Portfolio Activity (1) Roll off includes cash flow from maturities, calls or amortizations of securities and is presented net of sales. (2) Purchased amount is presented net of purchases made related to sales. Loan Portfolio Statistics at December 31, 2017 Variable
Slide 24: Deposit Growth
Deposit Growth Deposits & Percent of Free Funds Average Balances; $ in billions 4Q 2017 Cost of Interest-Bearing Liabilities 0.55% Including DDA 0.36% $12.7 $15.3 $12.9 $15.7 $16.8
Slide 25: Strong Capital Position
Strong Capital Position Capital Ratio Trends 2015 - 2017 ratios calculated under Basel III requirements. Total Risk-Based Capital Tier 1 Risk-Based Capital Tier 1 Leverage Common Equity Tier 1
Slide 26: Business Segment Updates
UMB Business Segment Updates
Slide 27: Asset Servicing Assets Under Administration
Asset Servicing Assets Under Administration $ in billions
Slide 28: Asset Servicing
Asset Servicing Fund Accounting & Administration Alternative Asset Servicing Custody Transfer Agency
Slide 29: UMB Fund Services – Turnkey Solutions
UMB Fund Services – Turnkey Solutions A turnkey, cost-effective means of starting and operating a mutual fund—ideal for advisors who wish to offer a mutual fund to enhance their product line. Ideal for advisors seeking a low-cost pooled alternative to enter the qualified retirement plan market space
Slide 30: Bank Line of Business Detail – 4Q'17
Bank Personal Banking Commercial & Business Banking Institutional Banking Healthcare Services (1) (1) Includes Prairie Capital Management (PCM) income and expense. Line of Business Detail – 4Q’17 Net Interest Income Noninterest Income Noninterest Expense
Slide 31: Bank - Diverse Sources of Net Income
Bank - Diverse Sources of Net Income Prior periods have been restated in discontinued operations format. Percentages less than 1% have been omitted. Includes PCM’s income and expense. Personal Banking Commercial & Business Banking Institutional Banking Healthcare Services Treasury & Other (3) 2Q’17
Slide 32: Loan Paydowns, Payoffs, and Line Changes
Loan Paydowns, Payoffs, and Line Changes
Slide 33: Bank – Loan Composition
Bank – Loan Composition Diverse Loan Book (Average Loan Balances for the three months ended December 31 of the indicated year) Commercial Credit Card Commercial & Industrial HELOC Residential Real Estate Real Estate Construction Commercial Real Estate Consumer Credit Card Consumer Other $6.5B $7.3B
Slide 34: Bank – Regional Lending
Colorado Kansas City Kansas Greater MO St. Louis Arizona Texas Oklahoma Marquette Transportation Fin (Natl. Sales) Nebraska Marquette Business Credit (Natl. Sales) Bank – Regional Lending $6.5B $7.3B $9.2B $10.3B $11.1B Loans by Region (Average Loan Balances for the three months ended December 31 of
Slide 35: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE & Construction Lending (Average Loan Balances for the three months ended December 31 of the indicated year) $4.2B $3.8B $3.0 B $2.1B $1.8B Investment CRE Owner Occ. CRE Construction Farmland Multi-Family CRE Residential Construction (1) Percentages less than 5% h
Slide 36: Diverse Sources of Deposits
Diverse Sources of Deposits (Average Deposits for the three months ended December 31 of the indicated year) Bank – Total Deposits $12.7B $12.9B $15.3B $15.7B $16.8B Personal Banking - Consumer Commercial Institutional Banking Personal Banking - Private Wealth Asset Servicing Healthcare Small Busines
Slide 37: Personal Banking
$10.2B $11.6B $12.8B $13.6B $14.8B $1.2B $1.4B $1.6B $1.7B $1.6B Home Equity Lines of Credit $ in millions Assets Under Management $ in millions Personal Banking
Slide 38: Institutional Banking – Business Description
Institutional Banking – Business Description Investor Solutions Corporate Trust Investment Banking Public Finance Distressed Debt FDIC Sweep Provides banking solutions to 7 of top 10 clearing Broker-Dealer’s and 6 of top 10 independent Broker-Dealer’s Provides services to more than 25MM investor acc
Slide 39: Institutional Banking FDIC Sweep Program
Institutional Banking FDIC Sweep Program $ in billions $21.2B $28.5B $38.6B $51.9B $52.3B 5 Year CAGR 24.1%
Slide 40: Healthcare Services
Healthcare Services 2013 2014 2015 2016 4Q’17 HSA investment assets as % of total healthcare deposits & assets 7.4% 8.3% 9.2% 8.7% 13.4% HSA deposits as % of total UMB deposits 4.4% 6.2% 7.8% 9.7% 11.4% +34.1% Dec 31, 2017 vs. Dec 31, 2016 Healthcare Deposits & Assets End-of-period balances; $ in mi
Slide 41: Healthcare Services – Growth & Potential
Healthcare Services – Growth & Potential Industry information source: Devenir Research 2017 Midyear HSA Market Statistics & Trends report dated August 16, 2017. Rankings as of June 30, 2017. Deposit and asset growth rates on an annual basis as of June 30, 2017. HCS represents a unique asset as one o
Slide 42: Multi-Channel Healthcare Strategy
Multi-Channel Healthcare Strategy UMB offers a modular and configurable platform of applications and services that deliver the underlying core banking functionality to our healthcare partners Broker/Employer TPAs Health Plans Technology Firms Payment Aggregators Healthcare Partners HCS Applications
Slide 43: Card Purchase Volumes
Card Purchase Volumes Purchase Volume & Interchange Revenue Commercial Credit Consumer Credit Consumer Debit Healthcare Debit Institutional Banking – IBIS Debit Interchange ($ in millions) $2.4B $1.6B $2.1B $2.3B $2.3B Percentages less than 5% have been omitted. (1)