Slide 1: UMB Financial Second Quarter 2016
UMB Financial Second Quarter 2016 July 26, 2016 Exhibit 99.6
Slide 2: Cautionary Notice about Forward-Looking Statements
Cautionary Notice about 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 stric
Slide 3: 2Q 2016 Performance Highlights
2Q 2016 Performance Highlights
Slide 4: Earnings Summary – 2Q 2016
Earnings Summary – 2Q 2016 $ in thousands, except share and per share data; unaudited
Slide 5: 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 6: Operating Noninterest Expense & Efficiency Ratio Non-GAAP Reconciliation
Operating Noninterest Expense & Efficiency Ratio Non-GAAP Reconciliation Operating noninterest expense for the relevant period is defined as GAAP noninterest expense, adjusted to reflect the pre-tax impact of non-GAAP adjustments described in clauses i-iii on slide 5. Operating efficiency ratio is c
Slide 7: Consistent Loan Growth
Consistent Loan Growth End-of-Period Total Loans 2Q’16 Total Loans +13.1% vs. 2Q’15 (1) On May 31, 2015, we closed the acquisition of Marquette and loans with an acquired value of $980.4 million were added to the UMB portfolio. At June 30, 2016, the acquired loans plus production in the legacy Marqu
Slide 8: Select Balance Sheet Items
Select Balance Sheet Items $ in thousands, average balances; unaudited Three Months Ended
Slide 9: Key Performance Metrics
Key Performance Metrics (1) See Slides 5 and 6 for additional disclosures and reconciliations related to these non-GAAP financial measures.
Slide 10: Profitability Metrics
Profitability Metrics NIM/Total Assets Fee Income/Total Assets Expense/Total Assets Revenue/FTE UMBF Peer Median Performance metrics are annualized actual results. Peer medians for Q2 2016 are calculated using reported results, where available, or consensus estimates where results are not yet availa
Slide 11: Update on Efficiency Initiative
Update on Efficiency Initiative (1) 1Q’16: recognized savings of $3.3MM in salaries and benefits and $1.6MM in business process improvements; 2Q’16: recognized savings of $2.6MM in salaries and benefits and $1.5MM in business process improvements. (2) Excludes severance costs. (3) Excludes Marquette
Slide 12: 2Q 2016 Financials
2Q 2016 Financials
Slide 13: UMB and Marquette Loans
UMB and Marquette Loans $10.1 $9.7 $8.9
Slide 14: Quality Credit Metrics
Quality Credit Metrics Net Charge-Offs $ in thousands Nonperforming Loans $ in thousands
Slide 15: High Quality Investment Portfolio
2nd Quarter 2016 Average Balance, AFS: $6.8 billion Average Yield: 1.90% Investment Mix Securities Available for Sale $6.8 billion at June 30, 2016 High Quality Investment Portfolio Agencies Corporates Municipals Mortgage-Backed Securities Treasuries AFS Portfolio Statistics (2) (1) Roll off include
Slide 16: Deposit Growth
Deposit Growth Deposits & Percent of Free Funds Actual EOP Balances; $ in billions 2Q 2016 Cost of Interest-Bearing Liabilities 0.23% Including DDA 0.16% $10.3 $12.2 $11.7 $14.5 $15.6
Slide 17: Balance Sheet – Strong Capital Position
Balance Sheet – Strong Capital Position Common Equity Tier 1 Ratio vs. Industry 2Q’16 Average Equity ($ in billions) Capital Ratio Trends Industry Median as of 1Q’16; Source: SNL Financial. (1) 2015 & 2016 ratios calculated under Basel III requirements. Total Risk-Based Capital Tier 1 Risk-Based Cap
Slide 18: Asset Sensitivity at June 30, 2016
Year 1 Year 2 Year 1 Year 2 Year 1 Year 2 Asset Sensitivity at June 30, 2016 Projected Net Interest Income Differential vs. Rates Unchanged (1) ($ in millions) (1) This analysis is further described in our Annual Report on Form 10-K for the year ended December 31, 2015, and subsequent Quarterly Repo
Slide 19: Noninterest Income – 2Q 2016
Noninterest Income – 2Q 2016 Noninterest income increased $5.1 million, or 4.4%, compared to 1Q’16, and $1.9 million, or 1.6%, compared to 2Q’15 Compared to 1Q’16: Derivative income increased $1.0MM and fair value adjustments on company-owned life insurance increased $710k in the “other” income line
Slide 20: Noninterest Income Composition – 2Q 2016
Bankcard Fees Noninterest Income Composition – 2Q 2016 Trust & Securities Processing Revenue Trust & Securities Processing Composition: Service Charges on Deposit Accounts Trust & Securities Processing Gains on Sales of Securities Other Brokerage Fees Trading & Investment Banking ($ in millions) Ins
Slide 21: Noninterest Expense – 2Q 2016
Noninterest Expense – 2Q 2016 2nd Quarter ‘16 Drivers Noninterest expense increased $4.5 million, or 2.5%, compared to 1Q’16, and $13.3 million, or 7.7%, compared to 2Q’15 Acquisition expenses recognized during 2Q’16 totaled $1.0MM, compared to $3.0MM for 1Q’16 and $0.8MM for 2Q’15 Compared to 1Q’16
Slide 22: Business Segment Updates
Business Segment Updates
Slide 23: Bank Highlights
Bank Highlights Total loans at June 30, 2016 stood at $10.1 billion, an increase of 4.0% on a linked-quarter basis and 13.1% year-over-year Loans acquired and originated through legacy Marquette channels totaled $1.0 billion Average loan yield for 2Q’16 was 3.82% compared to 3.55% in 2Q’15 Private p
Slide 24: Bank - Line of Business Detail – 2Q’16
Bank - Line of Business Detail – 2Q’16 (1) Includes Prairie Capital Management income and expense. Net Interest Income Noninterest Income Noninterest Expense Personal Banking Commercial & Business Banking Institutional Banking Healthcare Services Treasury & Other (1)
Slide 25: Bank - Diverse Sources of Net Income
Bank - Diverse Sources of Net Income (1) Includes PCM’s income and expense. Personal Banking Commercial & Business Banking Institutional Banking Healthcare Services Treasury & Other (1) Net Income Before Tax 2Q’15 3Q’15 4Q’15 2Q’16 1Q’16 $28.6M $21.9M $32.3M $45.9M $42.3M
Slide 26: Loan Paydowns, Payoffs, and Line Changes
Loan Paydowns, Payoffs, and Line Changes (1) On May 31, 2015, we closed the acquisition of Marquette and loans with an acquired value of $980.4 million were added to the UMB portfolio. (1)
Slide 27: Bank – Loan Composition
Bank – Loan Composition Diverse Loan Book (Actual Loan Balances at June 30) Commercial Credit Card Commercial & Industrial (1) HELOC Residential Real Estate Real Estate Construction Commercial Real Estate Consumer Credit Card Consumer Other $5.3B $6.3B $6.9B $8.9B $10.1B 1.2% 2.4% 3.5% 1.8% 1.7% 1.8
Slide 28: Bank – Regional Lending
Bank – Regional Lending (2) Arizona loan balances include $603.9MM legacy UMB loans and $393.6MM legacy Marquette loans. (1) Texas loan balances include $340.7MM legacy UMB loans and $296.2MM legacy Marquette loans. Colorado Kansas City Kansas Greater MO St. Louis Arizona Texas Oklahoma Marquette Tr
Slide 29: Oil & Gas Loans Outstanding – as of June 30, 2016
Oil & Gas Loans Outstanding – as of June 30, 2016 Service Midstream Upstream Downstream UMB Total Loans $10.1 billion Oil & Gas Loans $351.6 million Reserves on Oil & Gas Portfolio Against outstanding loans of $351.6 million ~2.5% Against classified loans of $56.7 million ~9.0% Portfolio Statistics
Slide 30: Net Charge-Off History
Net Charge-Off History (1) Commercial includes Commercial & Industrial, Commercial Credit Card, Commercial Real Estate, Real Estate Construction loans, asset- based, and factoring loans. (2) Other includes Consumer, Residential Real Estate, HELOC, and DDA Charge-offs.
Slide 31: n <9) c o o£ a Cc £ = © ‘S) = nN n
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Slide 32: Bank – Total Deposits
Bank – Total Deposits Diverse Sources of Deposits (Actual Deposits at June 30) $10.3B $11.7B $12.2B $14.5B $15.6B Personal Banking - Consumer Commercial Institutional - IAM Personal Banking - Private Wealth Asset Servicing Healthcare Institutional - IBIS Small Business Other 1.9% 1.3% 3.8% 0.1% 0.1%
Slide 33: Personal Banking
$8.8B $10.2B $11.6B $12.8B $12.7B $1.2B $1.2B $1.4B $1.6B $1.7B Home Equity Lines of Credit $ in millions Assets Under Management $ in millions Personal Banking (1) (1) Includes $697.3 million acquired from Marquette.
Slide 34: Institutional Banking FDIC Sweep Program
Institutional Banking FDIC Sweep Program $ in billions 5-year CAGR 31.7%
Slide 35: Healthcare Services
Healthcare Services Healthcare Deposits and Assets $ in millions $430.5 $642.4 $917.5 $1,292.4 $1,573.5 Healthcare provided 9.1% of Total Company Deposits in 2Q’16 Investment assets as a 2012 2013 2014 2015 2Q’16 % of total healthcare deposits & assets 7.2% 7.4% 8.3% 9.2% 9.8%
Slide 36: Multi-Channel Healthcare Strategy
We offer a modular and configurable platform of applications and services that deliver the underlying core banking functionality to our healthcare partners. Broker/Employer TPAs Health Plans Tech Cos Payment Aggregators Healthcare Partners HSA Applications SSO Web Services Contributions Enrollment B
Slide 37: Card Purchase Volumes
Card Purchase Volumes Purchase Volume & Interchange Revenue Commercial Credit Consumer Credit Consumer Debit Healthcare Debit Institutional Banking – IBIS Debit Interchange ($ in millions) $2.6B $1.5B $1.7B $2.2B $2.3B 1.3% 1.1% 1.6% 1.4% 1.3%
Slide 38: Institutional Investment Management
Institutional Investment Management Scout assets under management stood at $28.1 billion on June 30, 2016, an increase of $781 million from March 31, 2016 Asset mix = 82% fixed income / 18% equity Net flows for 2Q’16 were +$469.7 million in fixed income assets and -$492.7 million in equity assets, f
Slide 39: Total AUM
Total AUM $28.1B $23.5B $31.2B Institutional Investment Management $31.2B $27.2B Billions
Slide 40: AUM Drivers
AUM Drivers $ in millions ($830.9) ($2,027.5) Total Change ($millions) $27,181.3 $28,012.2 Total AUM ($millions) Institutional Investment Management ($567.7) $30,039.7 $109.9 $27,291.2 $781.1 $28,072.3 2Q’16 1Q’16 4Q’15 3Q’15 2Q’15
Slide 41: AUM by Strategy – As of June 30, 2016
AUM by Strategy – As of June 30, 2016 Equity Fixed Income Equity Strategies International MidCap International ADR Emerging Markets Global Small Cap Other: Equity Opportunity Fixed Income Strategies Core Plus Low Duration Long Duration Core Real Return Unconstrained Intermediate Other: Global Aggreg
Slide 42: Asset Servicing
Asset Servicing Assets Under Administration $ in billions Investment Management Series Trusts continue to grow, with 86 active funds and $16.0 billion in assets at June 30, 2016, up from 83 funds and $13.1 billion in assets at March 31, 2016 Launched new distribution toolkit for asset managers in Ju
Slide 43: Asset Servicing
Asset Servicing Fund Accounting & Administration Alternative Asset Servicing Custody Transfer Agency
Slide 44: Appendix
Appendix
Slide 45: Peer Group Companies
Peer Group Companies Company Ticker BOK Financial Corporation BOKF Boston Private Financial BPFH CoBiz Financial Inc. COBZ Commerce Bancshares, Inc. CBSH Cullen/Frost Bankers, Inc. CFR First Midwest Bancorp, Inc. FMBI FirstMerit Corporation* FMER Old National Bancorp ONB Prosperity Bancshares PB Sig
Slide 46: Market Capture – UMB vs. Peers vs. Indices
Market Capture – UMB vs. Peers vs. Indices Source: Thomson Reuters
Slide 47: Overall Market Capture
Overall Market Capture Overall Capture Ratio & Total Return 07/01/06 – 6/30/16 Source: Thomson Reuters
Slide 48: UMB Financial Second Quarter 2016
UMB Financial Second Quarter 2016