Umb Financial Corporation · NASDAQ:UMBF
Umb Financial — Q2 2014 Earnings Presentation
25 slides from Umb Financial's earnings presentation, Jul 22, 2014
Slide 1: Quality endures. Second Quarter 2014
Quality endures. Second Quarter 2014 Exhibit 99.2 UMB Financial
Slide 2: Earnings Summary
Earnings Summary $ in thousands, except per-share data; unaudited 2Q14 1Q14 2Q13 vs. 1Q14 vs. 2Q13 Net Interest Income 86,170 $ 85,445 $ 82,327 $ 0.8 4.7 Noninterest Income 134,001 122,964 113,585 9.0 18.0 Total Revenue 220,171 208,409 195,912 5.6 12.4 Noninterest Expense 166,511 172,241 150,311 (3.
Slide 3: Net Interest Income +4.7%
Net Interest Income +4.7% Net Interest Income 2Q’14 vs. 2Q’13 • Increased loan balances
Slide 4: Noninterest Income Highlights
54.7% Noninterest Income Highlights 5 Year CAGR 20.7% 15.4% 12.8% 4.9% 4.8% 2.6% 2.3% 1.9% 0.6% Bankcard Fees Trust & Securities Processing Revenue Trust & Securities Processing Composition : Equity Earnings/Alternatives Trading & Investment Banking Other Deposit Service Charges Trust & Securities P
Slide 5: Noninterest Expense
NI Expense 5yr CAGR 7.0% Noninterest Expense Salary 5yr CAGR 8.5% NI Income 5yr CAGR 11.6% 0% 20% 40% 60% 80% 100% $40 $60 $80 $100 $120 $140 $160 $180 Salary/Benefit Expense Noninterest Income Total Noninterest Expense Coverage Ratio* Noninterest expense increased 10.8% to $166.5 million vs. 2Q’13
Slide 6: Select Balance Sheet Items
Select Balance Sheet Items $ in thousands, average balances; unaudited vs. 1Q14 vs. 2Q13 Avg. Balance Avg. Balance Avg. Balance Assets Loans, net of unearned interest 6,897,840 $ 3.51 6,678,932 $ 3.58 6,158,821 $ 3.69 3.3 12.0 Total securities 6,940,448 1.97 6,997,052 1.98 7,091,118 1.95 (0.8) (2.1)
Slide 7: Consistent Loan Growth
Consistent Loan Growth 5 Year CAGR 9.2% Average Net Loans & Loan Yields
Slide 8: Slide 8
Slide 9: High Quality Investment Portfolio
47.5% 29.0% Average Balance, AFS: $6.7 billion Average Yield: 1.90% High Quality Investment Portfolio Securities Gains $ in thousands 2Q13 1,519 $ 3Q13 1,140 $ 4Q13 (10) $ 1Q14 1,470 $ 2Q14 2,569 $ Duration/Life (in months) at 06/30/14 at 03/31/14 Avg. Life Total 46.93 46.66 Duration Total 42.55 43.
Slide 10: Key Metrics
Key Metrics 0.21% 0.20% 0.26% 0.23% 0.22% 0.40% 0.48% 0.47% 0.45% 0.39% 73.50% 70.77% 73.64% 79.67% 73.32% 2.56% 2.61% 2.51% 2.39% 2.53% 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 Efficiency Ratio Net Interest Margin 9.31% 10.84% 9.08% 6.13% 8.77% 0.81% 0.92% 0.89% 0.58% 0.89% 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 Retur
Slide 11: Business Segment Updates
Business Segment Updates
Slide 12: Bank
Bank 33.5% 33.7% 40.0% 40.0% 42.0% 5 yr CAGR 10.1% 5 yr CAGR 9.2% Net loans grew for the 17 th consecutive quarter, increasing by 9.2% to $6.8 billion UMB presence in Texas has expanded into Fort Worth with a new office and a team of commercial lenders Private banking loan demand strong, with loan b
Slide 13: Bank - Lending
Bank - Lending 45.4% 54.8% 28.3% 25.0% Diverse Loan Book (Actual Loan Balances at June 30) 10.6% $5.3B $6.9B 8.7% 8.7% $6.3B 6.1% 4.3% 4.3% 2.7% $4.7B 1.1% 2Q'11 2Q'12 2Q'13 2Q'14 Commercial & Industrial* Commercial Real Estate Home Equity Credit Card Consumer Real Estate Consumer - Other *includes
Slide 14: Bank - Deposits
Bank - Deposits 29.3% 34.4% Diverse Sources of Deposits (Average Deposits for Three Months Ended June 30) 35.6% 26.0% 11.8% 9.9% 6.0% 7.0% 7.2% 6.8% 2.8% 6.2% 4.2% 3.1% 5.1% 4.6% $9.5 $10.3 $11.6 $12.3 2Q'11 2Q'12 2Q'13 2Q'14 Commercial/Treasury Mgmt Consumer Banking Asset Servicing Private Wealth M
Slide 15: Bank – Commercial Banking
Bank – Commercial Banking 5 yr CAGR 10.6% 47.7% 46.0% 43.9% 43.3% 42.1% High Growth Regions 2Q’14 vs. 2Q’13 Commercial Loans By Region Loan Balances $ in billions, Average C&I and CRE Loan Balances for Three Months Ended June 0% 50% 100% 2Q'10 2Q'11 2Q'12 2Q'13 2Q'14 KC CO STL Greater MO KS OK AZ NE
Slide 16: Bank – Private Wealth Mgmt. & Consumer Banking
Bank – Private Wealth Mgmt. & Consumer Banking 49.1% 48.4% 48.8% 46.1% 45.1% Assets Under Management $ in billions $921 $1,004 $1,123 $1,194 $1,296 $452 $486 $549 $550 $584 2Q '10 2Q '11 2Q '12 2Q '13 2Q '14 Commitments Balances Utilization Home Equity Lines of Credit $ in billions $7.4B $7.6B $8.8B
Slide 17: Institutional Investment Management
Institutional Investment Management $26.3 $29.3 $31.2 $32.2 $32.4 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 Total Scout Assets Under Management $ in billions nd Quarter Highlights AUM increased 23.1% to $32.4 billion compared to 2Q’13 Launched the Unconstrained Bond strategy UCITS during the quarter. Assets in
Slide 18: Institutional Investment Management
Institutional Investment Management AUM Drivers $ in millions $230.7 $996.1 Total Change ($millions) $32,394.3 $32,163.5 Total AUM ($millions) $567.3 $26,314.1 $2,994.8 $29,308.9 $1,858.5 $31,167.4
Slide 19: Institutional Investment Management
Institutional Investment Management Total AUM $32.4B $19.7B $23.5B $31.2B $32.2B
Slide 20: AUM by Strategy – As of 2Q'14
34.4% 25.5% AUM by Strategy – As of 2Q’14 55% 45% 63.3% 31.6% 19.3% 11.4% 5.1% 4.4% Equity Strategies International Mid Cap International ADR Emerging Markets Global Small Cap Other: Fixed Income Strategies Core Plus Low Duration Long Duration Core Intermediate Unconstrained Global Aggregate Real Re
Slide 21: Payment Solutions
Payment Solutions Total Card Purchase Volume & Interchange Revenue nd Quarter 2014 Highlights Durbin effective Credit and debit card purchase volume increased 27% to $2.2 billion vs. 2Q’13 HSA deposits and assets grew by 38.2% to $823.7 million vs. 2Q’13 1.4 million HSA/FSA accounts were added in th
Slide 22: Payment Solutions
Payment Solutions Healthcare Purchase Volume Trends $millions * Interchange revenue from Healthcare cards divided by purchase volume on Healthcare cards
Slide 23: Asset Servicing
Asset Servicing nd Quarter 2014 Highlights Assets Under Administration $billions AUA increased 23.7% over the past 12 months to $207.9 billion 80 new alternative servicing clients were added during the 2 nd quarter, increasing assets in that business by 15.5% UMB Fund Services was again recognized a
Slide 24: Fund Accounting & Administration; Alternative Asset Servicing
Fund Accounting & Administration Alternative Asset Servicing srt $313 seo 888 $58.2 $24 pean zor 2012, a3 zs sas sas aa 204s mn 2012, tats ats 3043 dats tas mmm Assets Under Administration —# of Funds Serviced lmmAssets Under Administration —é-# of Funds Serviced Transfer Agency Custody 4,280.4 sss
Slide 25: Building a company for the next years. Second Quarter 14
Building a company for the next 100 years. Second Quarter 2014 UMB Financial