Slide 1: 2nd Quarter 2024 Update
2 Quarter 2024 nd Update Kansas City, MO July 30, 2024
Slide 2: Presentation Index
Presentation Index Corporate Overview 3 Acquisition Update 7 Our Investment Thesis 10 2nd Quarter 2024 Results 19 Line of Business Updates 35 Appendix 46 Board of Directors Forward-Looking Statements Peer Group Non-GAAP Reconciliations Please refer to the Forward-Looking Statements on slides 48-51 f
Slide 3: Corporate Overview
Corporate Overview Highlights Founded 1913 Ticker UMBF - Nasdaq Market Cap $4.1 B Total Assets $44.5 B Gross Loans $24.2 B Total Deposits $36.5 B Private Wealth Customer Assets (1) $15.9 B Institutional Assets Under Administration (AUA) (2) $502.2 B UMB Financial Corporation Headquarters Common Equi
Slide 4: Business Model: Our Diverse Foundation
Business Model Our Diverse Foundation Commercial & Personal Banking Services 2Q’24 Revenue: $243.4 million. 2Q’24 Average Deposits: $20.0 billion (1) Commercial Consumer Private Wealth Average loans: $20.0B (2) Average loans: $3.2B (2) (3) AUM = $13.1B Average deposits: $13.2B Average deposits: $6.8
Slide 5: Beyond Financials: Our Culture
Beyond Financials Our Culture Our Vision Our Values Creating an unparalleled customer experience requires a culture where our people feel part of something more, something bigger. We foster this experience through our policies, our business Customers First decisions and our expectations of each asso
Slide 6: Beyond Financials: Our Commitment to Corporate Citizenship
Beyond Financials Our Commitment to Corporate Citizenship Inclusion & Diversity Strong Corporate Governance Effective governance practices preserve the confidence and We want our company to be as diverse as the world we live in. trust of our stakeholders. ▪ As an early CEO Action for Diversity and I
Slide 7: Acquisition Update
Acquisition Update Denver, CO
Slide 8: HTLF Acquisition – Strategically Compelling
HTLF Acquisition – Strategically Compelling Creating a ~$65B Asset Regional Champion Builds Presence in Midwest & Southwest ✓ Increases density in existing markets ✓ Expands into attractive new geographies ✓ Top 10 deposit market share ranking in 5 states (3) Market Pro Forma Deposits (1) Shared Sta
Slide 9: Acquisition Update: Progress
Acquisition Update Progress ▪ Submitted regulatory applications and filed S-4 / proxy statement ▪ Management participated in site visits and townhall meetings with stakeholders in all HTLF regions ▪ Established an integration program governance structure, working with EY, to lead planning and execut
Slide 10: Our Investment Thesis
Our Investment Thesis Dallas, TX
Slide 11: Investment Thesis: Opportunity in Our Diverse Business Model
Investment Thesis Opportunity in Our Diverse Business Model Runway for Growth Solid capital levels and ample liquidity sources ▪ Strong regulatory capital ratios ▪ Access to multiple contingent funding sources Diverse deposit base across multiple lines of business, customer segments and geographies
Slide 12: Differentiated Revenue Profile: Multiple Sources of Growth
Differentiated Revenue Profile Multiple Sources of Growth Net Interest Income $913.8 $920.1 15 Year CAGR $815.5 $731.2 8.4% $670.9 $610.4 $558.9 $495.3 $412.1 $317.0 $320.1 $333.3 $350.1 $303.0 $310.6 $275.1 Annual NII 18% 10% 3% 2% 1% 4% 5% 18% 20% 13% 9% 10% 9% 12% 12% 1% Growth Fee Income Provide
Slide 13: Balance Sheet Growth Across All Business Cycles
Balance Sheet Growth Across All Business Cycles Average Deposits 15 Year CAGR 2.22% 11.1% 2.01% 1.51% 1.37% Average Deposits Average Total Deposit Cost Peer Median Deposit Cost (1) Annual Deposit 14% 16% 11% 14% 10% 13% 6% 11% 9% 4% 7% 14% 20% 25% 8% 1% Growth Average Loans (2) 15 Year CAGR 11.8% An
Slide 14: Resilient Credit Metrics Through All Economic Environments
Resilient Credit Metrics Through All Economic Environments Net Charge-Offs / Average Loans 15 Year Average 0.29% 0.52% 0.18% 0.05% UMBF Peer Median (1) Industry (2) Nonperforming Loans / Loans 15 Year Average 0.44% 0.86% 0.33% 0.06% UMBF Peer Median (1) Industry (2) (1) UMB peers (15 banks), as of l
Slide 15: Capital & Liquidity Supports Growth Outlook
Capital & Liquidity Supports Growth Outlook Tier 1 Capital Ratio Equity / Assets Tangible Equity / Tangible Assets (2) UMBF Peer Median (1) UMBF Equity / Assets UMBF TCE / Tang. Assets (2) Peer Median TCE / Tang. Assets (1) (2) Cash & Securities / Assets (3) Average Loans / Average Deposits UMBF Pee
Slide 16: Risk-Adjusted Returns: Rowing Close to Shore
Risk-Adjusted Returns Rowing Close to Shore Risk-Weighted Assets / Assets UMBF Peer Median (1) Return on Risk-Weighted Assets (2) UMBF Peer Median (1) (1) UMB peers (15 banks), data as of latest available annual period. Source: S&P Capital IQ. (2) The numerator for the calculation of Return on Risk-
Slide 17: Dividend Trends: Sustained Growth
Dividend Trends Sustained Growth Annual Dividends Declared (1) 2024 = $1.56 (2) +2.0% vs. 2023 +280.5% 2004 - 2024 (2) (1) Dividends adjusted for 2-for-1 stock split in 2006. (2) Annualized 2024 full-year dividend assumes all 4 quarterly dividends are declared at $0.39/share, consistent with 1Q & 2Q
Slide 18: Outperformance Building Long-Term Value
Outperformance Building Long-Term Value 15-Year Compounded Annual Growth Rates 2008 – 2023 Diluted Earnings Per Share (1) Tangible Book Value Per Share (2) UMBF KRX* Peer Median** Industry*** *KBW Nasdaq Regional Bank Index (median of 50 banks); **UMB’s traditional peers (median of 15 banks); ***Med
Slide 19: 2nd Quarter 2024 Financial Review
2nd Quarter 2024 Financial Review St. Louis, MO
Slide 20: 2Q 2024 Results At-A-Glance
2Q 2024 Results At-A-Glance $ millions, except per share amounts. 2Q ’23 1Q ’24 2Q ’24 Linked-Quarter Variance & Commentary Average Loans 22,191.6 23,354.0 23,805.8 Average balances +$452mm LQ, with strong top line production of $926mm. CRE +$220mm, construction LQ annualized growth % 17.3% 4.2% 7.7
Slide 21: 2Q 2024 Earnings Highlights
2Q 2024 Earnings Highlights Net Income & Net Operating Income (1) Operating PTPP Income (2) $157.5 $146.8 $134.9 $127.9 $126.6 $120.7 $112.0 $105.9 $98.4 $93.8 Net Income EPS Operating PTPP Income – gains/losses on inv. securities (3) Net Operating Income (1) Operating EPS (1) Operating PTPP Income,
Slide 22: Revenue Trends
Revenue Trends Linked-Qtr. Variance 2Q ’23 3Q ’23 4Q ’23 1Q ’24 2Q ’24 $∆ %∆ Interest Income 461.4 472.0 496.6 520.1 538.3 18.2 3.5 Interest Expense 235.8 249.7 266.1 280.6 293.2 12.5 4.5 Net Interest Income $ 225.6 $ 222.3 $ 230.5 $ 239.4 $ 245.1 $ 5.7 2.4% Trust & securities processing 61.6 66.7 6
Slide 23: Net Interest Income
Net Interest Income Asset Yield and Liability Cost Trends $245.1 $239.4 $230.5 EA % $225.6 $222.3 IBL % COF % Liquidity Trends $ millions $3.7B $3.5B Pre- $3.0B pandemic $2.6B $2.1B $ billions $1.8B 8.4% 7.8% 5.0% 6.8% 8.8% 9.3% Net Interest Income NIM Spread Int-bearing due from banks Fed funds & r
Slide 24: Noninterest Income
Noninterest Income $159.2 Current Quarter Drivers $144.9 Noninterest income decreased $14.3mm or 9.0%, vs. 1Q’24. Primary drivers: $138.1 $140.3 ▪ A decrease of $11.2mm in investment securities gains, driven by an $8.6mm net gain $133.3 recorded in the prior quarter and a $2.6mm reduction in the val
Slide 25: Noninterest Expense
Noninterest Expense Linked-Qtr. Variance $ in millions 2Q ’23 3Q ’23 4Q ’23 1Q ’24 2Q ’24 $∆ %∆ Severance expense 4.9 2.4 1.2 0.1 0.1 - - Salary & Benefits, ex. severance expense 138.4 131.0 133.0 142.9 142.8 (0.1) (0.1) Occupancy 11.7 12.3 12.3 12.3 11.7 (0.5) (4.5) Equipment 17.1 17.2 16.6 16.5 15
Slide 26: Diversified Loan Portfolio
Diversified Loan Portfolio Linked-Qtr. Variance 2Q ’23 1Q ’24 2Q ’24 $∆ %∆ CRE/Construction 8,178 9,027 9,361 334 3.7 $ 23,354 $23,806 $ 23,109 $ 22,751 Credit Card 486 490 617 127 26.1 $ 22,192 Residential Real Estate 2,834 2,968 2,999 31 1.0 Specialty Lending 574 486 503 17 3.4 Consumer 140 153 16
Slide 27: Quarterly Loan Activity
Quarterly Loan Activity 2Q ’23 3Q ’23 4Q ’23 1Q ’24 2Q ’24 Gross Loan Production $986.3 $648.9 $909.0 $771.2 $925.9 Revolving Balance Changes 431.9 478.8 381.3 344.4 501.7 Net (Charge-offs) Recoveries 0.1 (4.6) (1.4) (3.0) (2.9) (1) Payoffs (534.5) (497.3) (707.9) (293.4) (377.6) (1) Paydow ns (213.
Slide 28: Strong Asset Quality
Strong Asset Quality Net Loan Charge-Offs (Recoveries) Delinquencies (0.00%) ($0.01) Net Charge-offs (Recoveries) NCOs / Average Loans Delinquencies (1) Delinquencies / Total Loans Nonperforming Loans Allowance for Credit Losses Nonperforming Loans NPLs / Total Loans Allowance for Credit Losses on L
Slide 29: Detailed Net Charge-Off History
Detailed Net Charge-Off History Historical 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Net Charge-Offs $ 6,141 $ 7,673 $ 6,992 $ 8,273 $11,755 $20,258 $21,697 $24,135 $18,091 $14,175 (Recoveries) $ thousands Average Total Loans $ 2,758 $ 3,110 $ 3,562 $ 3,888 $ 4,176 $ 4,356 $ 4,584 $ 4,
Slide 30: High-Quality Investment Portfolio
High-Quality Investment Portfolio Available-for-Sale (1) Held-to-Maturity (1) $6,816 $6,865 $6,651 $6,537 $6,408 $5,824 $5,766 $5,705 $5,653 $5,575 Average balances - $ millions Average balances - $ millions GNMA/GSE Mortgage-Backed General Obligation Municipals Corp. & Commercial Paper GSE Agencies
Slide 31: Securities Portfolio Statistics
Securities Portfolio Statistics Net Securities Portfolio Activity (1) Amortized Fair Unrealized Cost Value $ in millions $ in millions; as of 06/30/24 Loss (5) (3) (4) (5) 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Available for Sale Roll-off / Cash Flow $243 $240 $262 $619 $528 Mortgage-backed 4,316 3,771 (545)
Slide 32: Diversified Deposit Mix
Diversified Deposit Mix Deposits by Line of Business $33,526 $34,341 $32,675 2% $31,475 $31,330 Fund Services 9% Commercial Institutional Capital Markets & Corp. Trust 13% Commercial Banking 38% Investor Solutions 9% Healthcare Services 9% Consumer & Private Wealth 20% Personal Linked-Qtr. Variance
Slide 33: Interest Rate Sensitivity
Interest Rate Sensitivity Impact to Net Interest Income Assumptions Increase / decrease based on hypothetical rate ▪ Projected rates for new loans and deposits based on historical changes and stable balance sheet analysis, management outlook and repricing strategies Ramp Scenario ▪ Asset prepayments
Slide 34: Capital & Liquidity Position
Capital & Liquidity Position Strong Capital Available Liquidity Sources As of June 30, 2024 $ billions Regulatory Capital Ratios Fed Discount Window $11.3 Cash & Due from Banks, inc. Fed account 4.6 13.08% Free Bond Collateral 1.9 11.14% FHLB Advances 1.4 UMBF Unsecured Fed Funds Purchased 1.3 ratio
Slide 35: Line of Business Updates
Line of Business Updates Salt Lake City, UT
Slide 36: Commercial Banking: Commercial Capabilities
Commercial Banking Commercial Capabilities Commercial Lending Portfolio Average Loan Balance & Composition $20.0B Middle Market Sm./Med ▪ C&I Lending ▪ Working capital lines Biz 4% ▪ Owner-Occupied CRE ▪ Equipment loans Specialized Verticals 10% Investment Real Estate ▪ Office ▪ Retail Middle Market
Slide 37: Commercial Banking: C&I Lending
Commercial Banking C&I Lending Commercial & Industrial Statistics C&I Industries as % of Total UMB Loans (1) ▪ Includes Middle Market, Lending Verticals & Small / Medium Business ▪ Considerations Other (2) Tech. & Finance & ▫ Internal limits on loan size and projects per sponsor Telecom Insurance 10
Slide 38: Commercial Banking: Commercial Real Estate
Commercial Banking Commercial Real Estate Commercial Real Estate Statistics Investment CRE as % of Total UMB Loans (1) ▪ Total CRE & Construction = 39% of UMB loans $9.5B 1-4 Unit Rentals Other (5) ▪ Owner-occupied – new purchase or refinance ▪ Real estate development – construction / perm Const. /
Slide 39: Investment Real Estate: Select Property Details
Investment Real Estate Select Property Details Total Investment CRE Portfolio Office CRE Portfolio Average Loan-to-Value, Select Asset Classes MSA Diversification Statistics $ millions ▪ Industrial: 61% Dallas-Fort Worth-Arlington, TX MSA $223 ▪ Average Loan: $9.2mm ▪ Multifamily: 55% Jacksonville,
Slide 40: Personal Banking: Consumer
Personal Banking Consumer Strategic & Stable Source of Low-Cost Funds High Customer Satisfaction Consumer plays a strategic role for UMB as a large and stable source of Consumer serves the personal banking needs of deposits. Poised for continued asset growth clients across all divisions of the bank
Slide 41: Personal Banking: Private Wealth Management
Personal Banking Private Wealth Management Customer Assets Wealth Management Non-Managed $13.1B Personal ▪ Financial planning AUA Trust 18% 23% ▪ Discretionary investment management Other ▪ Strategic wealth solutions for ultra-high net worth 5% Managed Assets families (AUM) IRAs Brokerage 4% ▪ Busin
Slide 42: Institutional Banking: Fund Services & Institutional Custody
Institutional Banking Fund Services & Institutional Custody Assets Under Administration Registered Funds & Alternative Investments Provides services for 1,700 funds, including registered and alternative $460B $443B investment funds, PE funds, real estate and venture capital funds and ETFs and more.
Slide 43: Institutional Banking: Corp./Specialty Trust & Capital Markets
Institutional Banking Corp./Specialty Trust & Capital Markets Corporate Trust & Escrow Services Capital Markets Division Provides trustee, paying agent and escrow services to municipal Capital solutions including fixed income sales, trading and underwriting and corporate issuers. for institutional,
Slide 44: Institutional Banking: Investor Solutions & Healthcare Services
Institutional Banking Investor Solutions & Healthcare Services Investor Solutions $49B ~84mm Our banking as a service (BaaS) solution includes deposit services for checking, saving, and investment accounts, including expanded FDIC insurance through our proprietary Sweep Program. Sample BaaS Partners
Slide 45: Payments: Credit & Debit Card Products
Payments Credit & Debit Card Products Card Purchase Volume & Interchange Trends 2Q ’24 Card Spend $4,701 $4,558 $4,020 $4,009 $4,088 $4.7B +16.9% YoY #26 Healthcare Debit Consumer Debit Inst. Cash Mgmt. 26th in U.S. Credit Card Commercial Credit Consumer Credit Interchange Income Purchase Volume (1)
Slide 46: Appendix
Appendix Phoenix, AZ
Slide 47: Governance: Our Board of Directors
Governance Our Board of Directors Robin Beery Janine Davidson K.C. Gallagher Greg Graves Mariner Kemper Gordon Lansford CC (Chair), RC CC, GC AC, RC Lead Independent Chairman of AC (Chair), CC Director, GC (Chair) the Board Tim Murphy Tammy Peterman Kris Robbins Josh Sosland Leroy Williams AC, CC GC
Slide 48: Forward-Looking Statements
Forward-Looking Statements This presentation contains, and our other communications, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or cur
Slide 49: Forward-Looking Statements
Forward-Looking Statements In addition to factors previously disclosed in UMB’s and HTLF’s reports filed with the SEC, the following factors could cause actual results to differ materially from forward-looking statements or historical performance: The occurrence of any event, change, or other circum
Slide 50: Additional Information – HTLF Acquisition
Additional Information – HTLF Acquisition Market and Industry Data. Unless otherwise indicated, market data and certain industry forecast data used in this presentation were obtained from internal reports, where appropriate, as well as third party sources and other publicly available information. Da
Slide 51: Additional Information – HTLF Acquisition
Additional Information – HTLF Acquisition Participants in the Solicitation. UMB, HTLF, and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of UMB and stockholders of HTLF in connection with the Transac
Slide 52: Peer Group
Peer Group ASB Associated Banc-Corp HWC Hancock Whitney Corporation BOKF BOK Financial Corporation ONB Old National Bancorp CADE Cadence Bank PNFP Pinnacle Financial Partners, Inc. COLB Columbia Banking System, Inc. PB Prosperity Bancshares, Inc. CBSH Commerce Bancshares, Inc. SNV Synovus Financial
Slide 53: Non-GAAP Reconciliations
Non-GAAP Reconciliations The following are non-GAAP measures used from time to time. To the extent a non-GAAP measure is used in this presentation, a reconciliation to such measure’s closest GAAP equivalent is provided below. UMB believes that these non-GAAP financial measures may be useful to inves
Slide 54: Non-GAAP Reconciliations: Net Operating Income
Non-GAAP Reconciliations Net Operating Income Three Months Ended June 30, Mar. 31, June 30, 2024 2024 2023 Net income (GAAP) $ 101,345 $ 110,258 $ 90,110 Adjustments: Acquisition expense 9,550 431 18 Severance expense 130 146 4,891 FDIC special assessment (3,800) 13,000 - (1) Tax-impact of adjustmen
Slide 55: Non-GAAP Reconciliations: Operating Pre-Tax, Pre-Provision Income
Non-GAAP Reconciliations Operating Pre-Tax, Pre-Provision Income Three Months Ended June 30, Mar. 31, June 30, 2024 2024 2023 Net interest income (GAAP) $ 245,108 $ 239,434 $ 225,611 Noninterest income (GAAP) 144,919 159,244 138,082 Noninterest expense (GAAP) 249,067 254,804 240,673 Adjustments to a
Slide 56: Non-GAAP Reconciliations: Tangible Common Equity Ratio
Non-GAAP Reconciliations Tangible Common Equity Ratio As of June 30, Mar. 31, June 30, Dec. 31, 2024 2024 2023 2008 Total shareholders' equity (GAAP) $ 3,227,347 $ 3,152,816 $ 2,831,628 $ 974,811 Less: Intangible assets Goodwill 207,385 207,385 207,385 104,924 Other intangibles, net 67,141 69,052 75
Slide 57: Non-GAAP Reconciliations: Return on Tangible Common Equity
Non-GAAP Reconciliations Return on Tangible Common Equity Operating Return on Tangible Common Equity Three Months Ended June 30, Mar. 31, June 30, 2024 2024 2023 Average shareholders' equity (GAAP) $ 3,201,606 $ 3,143,518 $ 2,876,832 Less: Average Intangible assets Average Goodwill 207,385 207,385 2