Slide 1: Fourth Quarter 2020
Fourth Quarter 2020 January 26, 2021 UMB Financial Exhibit 99.2
Slide 2: Cautionary Notice about Forward-Looking Statements
2 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 s
Slide 3: Corporate Snapshot
3 Corporate Snapshot Allowance for credit losses for loans only, excludes ACL related to HTM securities. Corporate Trust / Investment Banking Division Fund Services Asset-based lending Accounts receivable financing Healthcare Services Prairie Capital Management Private Wealth Management / Personal T
Slide 4: Highlights – 4Q 2020
Highlights – 4Q 2020 4 (1) Non-GAAP measure. See reconciliation and additional information on slide 39.
Slide 5: Earnings Summary – 4Q 2020
5 Earnings Summary – 4Q 2020 The Company adopted ASU 2016-13 as of 1/1/2020. See additional information on slides 30-31. Non-GAAP measure. See reconciliation and additional information on slide 39. Non-GAAP measure. See reconciliation and additional information on slide 41. Non-GAAP measure. See rec
Slide 6: Earnings Summary – FY 2020
6 Earnings Summary – FY 2020 $ in thousands, except share and per share data; unaudited The Company adopted ASU 2016-13 as of 1/1/2020. See additional information on slides 30-31. Non-GAAP measure. See reconciliation and additional information on slide 39. Non-GAAP measure. See reconciliation and ad
Slide 7: Noninterest Income – 4Q 2020
7 Noninterest Income – 4Q 2020 4th Quarter ‘20 Drivers Noninterest income increased $115.3MM, or 102%, compared to 3Q’20, primarily driven by: A $108.8MM gain on the investment in Tattooed Chef, Inc.; An increase of $2.4MM in equity earnings on alternative investments, An increase of $1.1MM in gains
Slide 8: Noninterest Income Composition – 4Q 2020
8 Noninterest Income Composition – 4Q 2020
Slide 9: Noninterest Income – FY 2020
9 Noninterest Income – FY 2020 2020 Noninterest Income Drivers Noninterest income increased $133.4MM, or 31.3%, compared to 2019, primarily driven by: A $108.8MM gain on the investment in Tattooed Chef, Inc.; An increase of $3.8MM in gains on sales of AFS securities; An increase of $3.1MM in equity
Slide 10: Noninterest Income Composition – FY 2020
10 Noninterest Income Composition – FY 2020
Slide 11: Card Purchase Trends
11 Card Purchase Trends Purchase Volume & Interchange Revenue (1) Percentages less than 5% have been omitted.
Slide 12: Noninterest Expense – 4Q 2020
12 Noninterest Expense – 4Q 2020 4th Quarter ‘20 Drivers Operating noninterest expense, which excludes the impact of acquisition expense, severance expense and COVID-19 related expense, was $225.5 million for the fourth quarter of 2020, an increase of $31.8 million, or 16.4 percent, compared to the
Slide 13: Noninterest Expense – FY 2020
13 Noninterest Expense – FY 2020 Operating noninterest expense, which excludes the impact of acquisition expense, severance expense and COVID-19 related expense, was $810.1 million for 2020, an increase of $33.0 million, or 4.2 percent, compared to 2019. See slide 42 for a reconciliation of this non
Slide 14: Balance Sheet
Balance Sheet
Slide 15: Select Balance Sheet Items
15 Select Balance Sheet Items $ in thousands, average balances; unaudited Three Months Ended Other average earning assets include taxable and tax-exempt securities, trading securities, federal funds and resell agreements and interest bearing due from banks.
Slide 16: Strong Capital Position
16 Strong Capital Position Capital Ratio Trends (%) These ratios are reflective of the Company’s election to utilize the 5-year regulatory capital phase-in of the adoption of ASU 2016-13 under inter-agency guidance. (1) (1)
Slide 17: Deposit Trends and Composition
Deposit Trends and Composition At December 31, 2020 Deposits by Type Deposits by Line of Business Non-Interest Bearing Interest-Bearing MMDA & Savings Time Deposits Interest-Bearing Performance Commercial Personal Institutional Commercial – Regional Banking 36% Personal – Consumer & Private Wealth 2
Slide 18: High Quality Investment Portfolio
18 High Quality Investment Portfolio Securities Held to Maturity $1.0 billion at December 31, 2020 Securities Available for Sale $9.3 billion at December 31, 2020 Average Balance: $8.9 billion Average Yield: 2.22% Duration: 61 months Average Balance: $1.0 billion Average Yield: 2.93% Duration: 69 mo
Slide 19: Securities Portfolio Statistics
19 Securities Portfolio Statistics AFS Portfolio Activity (1) Roll off includes cash flow from maturities, calls or amortizations of securities and excludes roll off related to non-core purchases. (2) Purchased amount is presented net of purchases made related to sales and excludes amounts related t
Slide 20: Growth of Diversified Loan Portfolio
Growth of Diversified Loan Portfolio Average Loans & Yields 20 5-yr CAGR: 12.4% (2015-2020) 15-yr CAGR: 11.1% (2005-2020)
Slide 21: Loan Portfolio Composition
KS-2% 21 Loan Portfolio Composition At December 31, 2020 * Includes C&I, leases and commercial credit card. Loans by Type Loans by Geography Kansas City CO St Louis AZ 9% TX 11% Greater MO 6% NE-2% OK-2% Commercial * Commercial Real Estate Residential Real Estate Consumer 2% Construction PPP Loans M
Slide 22: Quarterly Loan Activity
22 Quarterly Loan Activity Commercial Banking Line Draws & Utilization Trends
Slide 23: Commercial & Industrial Loan Portfolio
23 Commercial & Industrial Loan Portfolio C&I Portfolio Statistics (1) C&I Industry Diversification (2) Oil & Gas Average loan size: $4.6 million Considerations Internal limits on loan size and projects per sponsor Concentration guidelines for all lending verticals, monitored for changing conditions
Slide 24: Commercial Real Estate – Disciplined Expansion
Industries as a percentage of investment CRE and construction portfolio. PPP loans are excluded from the denominator when calculating percentages of total loans. Concentrations are calculated using tier 1 capital for UMB Bank, n.a. plus an adjusted ACL, per regulatory guidelines. 24 Commercial Real
Slide 25: Exposure to Sensitive Industries
Exposure to Sensitive Industries We analyzed our portfolios in each category for specific characteristics based on what is currently known, such as guarantees, recourse, liquidity positions and hedging strategies that provide protection, as well as those which may carry more risk if the current envi
Slide 26: Asset Quality
Asset Quality
Slide 27: Loan Risk Profile – 4Q 2020
Loan Risk Profile – 4Q 2020 27 At June 30 2020 Total past due and accruing amounts include loans 30-89 days past due of $9.9 million and loans > 90 days past due of $1.9 million. Held-to-maturity securities are presented gross of allowance for credit losses. (2)
Slide 28: Modification Trends
Modification Trends 28 Modifications on loans only; excludes modifications on held-to-maturity securities of $15.8 million at 6/30/20 and $9.0 million at 9/30/20. Percentages are modifications on loans as percentage of total loans excluding PPP balances. Remaining loan modifications / deferrals of $
Slide 29: Net Charge-Off History
29 Net Charge-Off History Loan categories for disclosure were updated in Q1 2020 with the adoption of ASU 2016-13. In prior periods, net charge-offs for “Commercial Loans” included C&I, commercial credit card, asset-based and factoring loans. Net charge-offs for “Other” included consumer credit card
Slide 30: CECL: Conservative & Prudent Reserve Build
CECL: Conservative & Prudent Reserve Build $ in millions Commercial & Industrial and Commercial Real Estate loan portfolios accounted for 85% of the allowance 4Q’20 provision expense of $5.0MM is 2.8x 4Q’20 NCOs Total loan reserves to nonperforming loans is 2.5x Elected 5-year regulatory capital pha
Slide 31: Changes to Allowance Under CECL – YTD 2020
Changes to Allowance Under CECL – YTD 2020 Allowance for Credit Losses ($ in millions) 31 ACL balance after the CECL day-one adjustment of $9.0 million. Portfolio changes represent the change in loan balances, portfolio characteristics, credit quality and net charge-offs. (1) (2)
Slide 32: Well-Positioned for the Current Environment
32 Peer Source for all charts: S&P Global; current as of 01/22/21 *Industry NCO/Avg Loans source: FDIC Quarterly Banking Profile Well-Positioned for the Current Environment Excess Liquidity Long-Term History of Quality Credit Metrics Leading Fee Income Strong Capital Position Net Charge-offs / Avera
Slide 33: Long-Term Value Creation
33 Long-Term Value Creation (1) Tangible book value per share is a non-GAAP measure. See reconciliation on slide 43. *All publicly-traded banks with data reported for both 2005 and 2020; **UMB traditional peer group (15 banks); ***KBW Nasdaq Regional Bank Index (50 banks). Source: S&P Global; curren
Slide 34: Returning Capital to Our Shareholders
Dividend increase = 228.9% 34 Returning Capital to Our Shareholders Annual Dividends Declared 2000 - 2020 (1) Dividends adjusted for 2-for-1 stock split in 2006. (1)
Slide 35: Our Continued Response to COVID-19
35 Our Continued Response to COVID-19 Operational Readiness Associates Communities Customers Maintaining business continuity protocol and executive-level pandemic task force Increased and strengthened network capacity Early move to drive-through only branches to protect associates and customers; now
Slide 36: Our Commitment to Corporate Citizenship
Our Commitment to Corporate Citizenship Inclusion & Diversity Community Impact Efficient & Sensible Resource Use Strong Corporate Governance As we all navigate a global pandemic and an increasingly polarized environment, we are engaging our associates, customers and communities through pro-active ou
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 38: Non-GAAP Reconciliations
38 Non-GAAP Reconciliations In this presentation, we provide information about pre-tax pre-provision income, pre-tax, pre-provision income on a fully tax equivalent basis (PTPP-FTE), net operating income, operating earnings per share-diluted (operating EPS-diluted), operating return on average equit
Slide 39: Pre-Tax, Pre-Provision Income
39 Non-GAAP Reconciliations Pre-Tax, Pre-Provision Income
Slide 40: Pre-Tax, Pre-Provision Income on a Fully Tax Equivalent Basis
40 Non-GAAP Reconciliations Pre-Tax, Pre-Provision Income on a Fully Tax Equivalent Basis
Slide 41: Net Operating Income
41 Non-GAAP Reconciliations (1) Calculated using the Company's marginal tax rate of 22.2%. Net Operating Income
Slide 42: Operating Noninterest Expense & Efficiency Ratio
42 Non-GAAP Reconciliations Operating Noninterest Expense & Efficiency Ratio
Slide 43: Tangible Common Equity Ratio and Tangible Book Value
43 Non-GAAP Reconciliations Tangible Common Equity Ratio Tangible Book Value Share count for December 31, 2005 adjusted for Company’s 2-for-1 stock split on May 31, 2006.