Slide 1: UMB Financial Third Quarter 2016
UMB Financial Third Quarter 2016 October 25, 2016 Exhibit 99.2
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: 3Q 2016 Performance Highlights
3Q 2016 Performance Highlights
Slide 4: Earnings Summary – 3Q 2016
Earnings Summary – 3Q 2016 $ in thousands, except share and per share data; unaudited Non-GAAP adjustments include fair value adjustments on contingent consideration, acquisition expenses and non-acquisition severance expense. See non-GAAP reconciliations and further information on these items on sl
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: Select Balance Sheet Items
Select Balance Sheet Items $ in thousands, average balances; unaudited Three Months Ended
Slide 8: Consistent Loan Growth
Consistent Loan Growth Average Total Loans 3Q’16 Average Loans +13.9% vs. 3Q’15
Slide 9: Net Charge-Off History
Net Charge-Off History (1) Commercial Loans includes Commercial & Industrial, Commercial Credit Card, Commercial Real Estate, Real Estate Construction, Asset- based, and Factoring loans. (2) Other includes Consumer, Residential Real Estate, HELOC, and DDA Charge-offs.
Slide 10: Loan Classification Trends
Loan Classification Trends % of total loans
Slide 11: Key Performance Metrics
Key Performance Metrics See slides 5 and 6 for additional disclosures and reconciliations related to these non-GAAP financial measures. Q1 2016 & Q2 2016 data is recast to reflect the adoption of ASU 2016-09.
Slide 12: 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 Q3 2016 are calculated using reported results, where available, or consensus estimates where results are not yet availa
Slide 13: 3Q 2016 Financials
3Q 2016 Financials
Slide 14: Net Interest Income – 3Q 2016
Net Interest Income – 3Q 2016 Analysis of Changes in Net Interest Income
Slide 15: Noninterest Income – 3Q 2016
Noninterest Income – 3Q 2016 Noninterest income increased $501 thousand, or 0.4%, compared to 2Q’16, and $12.9 million, or 11.8%, compared to 3Q’15 Compared to 2Q’16: Noninterest income remained flat and represented 49.4 percent of total revenue Trust and securities processing income remained stable
Slide 16: Noninterest Income Composition – 3Q 2016
Bankcard Fees Noninterest Income Composition – 3Q 2016 Trust & Securities Processing Revenue Trust & Securities Processing Composition: Service Charges on Deposit Accounts Trust & Securities Processing Gains on Sales of Securities Other Brokerage Fees Trading & Investment Banking ($ in millions) Ins
Slide 17: Noninterest Expense – 3Q 2016
Noninterest Expense – 3Q 2016 3rd Quarter ‘16 Drivers Noninterest expense decreased $5.6 million, or 3.0%, compared to 2Q’16, and $5.5 million, or 3.0%, compared to 3Q’15 Acquisition expenses recognized during 3Q’16 totaled $435k, compared to $996k for 2Q’16 and $4.9 million for 3Q’15 Compared to 2Q
Slide 18: 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; 3Q’16: recognized savings of $3.8MM in salaries and
Slide 19: Securities Available for Sale
Securities Available for Sale $6.3 billion at September 30, 2016 High Quality Investment Portfolio Agencies Corporates Municipals Mortgage-Backed Securities Treasuries (2) (1) Securities Held to Maturity $1.0 billion at September 30, 2016 Governmental Other Higher Education Healthcare Utility Social
Slide 20: Securities and Loan Statistics
Securities and Loan Statistics AFS Portfolio Activity at September 30, 2016 (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 Sept
Slide 21: Deposit Growth
Deposit Growth Deposits & Percent of Free Funds Actual EOP Balances; $ in billions 3Q 2016 Cost of Interest-Bearing Liabilities 0.25% Including DDA 0.17% $10.6 $12.8 $13.0 $15.1 $15.4
Slide 22: Strong Capital Position
Strong Capital Position Capital Ratio Trends (1) 2015 & 2016 ratios calculated under Basel III requirements. Total Risk-Based Capital Tier 1 Risk-Based Capital Tier 1 Leverage Common Equity Tier 1 (1) (1) (1) (1)
Slide 23: Business Segment Updates
Business Segment Updates
Slide 24: Segment Financials
Segment Financials Investment Segment Results (Sin thousands, unaudited) 3Q16 2Q16 —3Q15__ vs. 20°16 _ vs. 3015 Net interest income $ -$ - 49 - (100.0) Noninterest income 19,413 19,127 21,398 1.5 (9.3) Noninterest expense 16,874 18,858 16,495 (10.5) Net income before taxes 2,539 269° «4,952 (843.9 I
Slide 25: Segment Financials (continued)
Segment Financials (continued)
Slide 26: Institutional Investment Management Assets Under Management
$28.1 $23.5 $31.2 Institutional Investment Management $31.2 $27.2 Assets Under Management $ in billions Scout assets under management stood at $28.1 billion on September 30, 2016, a decrease of $1.6 million from June 30, 2016 Four Scout funds have received a four-star rating from Morningstar—Interna
Slide 27: AUM Drivers
AUM Drivers $ in millions Institutional Investment Management 3Q’16 2Q’16 1Q’16 4Q’15 3Q’15 Equity Scout Funds ($254MM) Separate Accts ($224MM) Fixed Income Scout Funds +$170MM Separate Accts ($98MM) 3Q’16 Net Flows
Slide 28: AUM by Strategy
AUM by Strategy – As of September 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 A
Slide 29: Morningstar Ratings
Morningstar Ratings as of Sept. 30, 2016 Fund Name Category Overall Rating Funds in Category Scout International Foreign Large Blend 715 Scout Emerging Markets Diversified Emerging Markets 602 Scout Core Plus Bond – Institutional Class Intermediate-Term Bond 956 Scout Unconstrained Bond – Institutio
Slide 30: Important Disclosures
Important Disclosures 1. The returns for periods prior to April 1, 2005 do not reflect the fees and expenses in effect as of April 1, 2005. If the new fees and expenses and the Advisor’s agreement to limit total Fund expenses were in effect for the periods shown, returns would have been lower. 2. Th
Slide 31: Scout Equity Funds Average Annual Total Returns
Scout Equity Funds Average Annual Total Returns (%) as of September 30, 2016 QTR 1 Year 3 Year 5 Year 10 Year Since Inception Exp. Ratio (%) (Gross / Net) Inception Date Scout International Fund (UMBWX)1 6.02% 11.79% 0.64% 7.30% 3.84% 7.81% 1.02 / 1.02 9/14/1993 MSCI EAFE Index 6.43% 6.52% 0.48% 7.3
Slide 32: Scout Fixed Income Funds Average Annual Total Returns
Scout Fixed Income Funds Average Annual Total Returns (%) as of September 30, 2016 QTR 1 Year 3 Year 5 Year 10 Year Since Inception Exp. Ratio (%) (Gross/Net) Inception Date Scout Low Duration Bond Fund (SCLDX)5 0.11% 1.74% 1.43% N/A N/A 1.64% 1.03 / 0.40 8/29/2012 Bloomberg Barclays 1-3 Year U.S. G
Slide 33: Asset Servicing Assets Under Administration
Asset Servicing Assets Under Administration $ in billions Investment Management Series Trusts continue to grow, with 87 active funds and $17.0 billion in assets at September 30, 2016; AUA in this product has tripled in the past 3 years Added 37 net new alternative funds serviced over the past 12 mon
Slide 34: Asset Servicing
Asset Servicing Fund Accounting & Administration Alternative Asset Servicing Custody Transfer Agency
Slide 35: Bank Line of Business Detail – 3Q'16
Bank Personal Banking Commercial & Business Banking Institutional Banking Healthcare Services Treasury & Other (2) (1) Noninterest income chart excludes ($164k) in “Treasury & Other”. (2) Includes Prairie Capital Management income and expense. Net Interest Income Noninterest Income Noninterest Expen
Slide 36: Bank - Diverse Sources of Net Income
Bank - Diverse Sources of Net Income Includes PCM’s income and expense. Q1 2016 & Q2 2016 data is recast to reflect the adoption of ASU 2016-09 Personal Banking Commercial & Business Banking Institutional Banking Healthcare Services Treasury & Other (1) Bank Segment Net Income Before Tax 3Q’15 4Q’15
Slide 37: Loan Paydowns, Payoffs, and Line Changes
Loan Paydowns, Payoffs, and Line Changes
Slide 38: Bank – Loan Composition
Bank – Loan Composition Diverse Loan Book (Actual Loan Balances at September 30) Commercial Credit Card Commercial & Industrial (1) HELOC Residential Real Estate Real Estate Construction Commercial Real Estate Consumer Credit Card Consumer Other $5.4B $6.5B $7.1B $9.0B $10.3B 1.2% 2.4% 3.5% 1.8% 1.9
Slide 39: 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 $176.9 $255.6 $153.3 $208.3 $271.6 $206.3 $255.6 $5.4B $6.5B $7.1B $9.0B $10.3B $233.8 $107.8 $117.4 Loans by Re
Slide 40: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE & Construction Lending (Actual Loan Balances at September 30) $3.7B $2.9B $2.1B $1.8B $1.4B 4.6% 2.2% 0.6% 5.7% 2.9% 1.3% 2.7% 1.7% 1.8% 1.7% 1.8% Investment CRE Owner Occ. CRE Construction Farmland Multi-Family CRE Residential Construction
Slide 41: Bank – Total Deposits
Bank – Total Deposits Diverse Sources of Deposits (Actual Deposits at September 30) $10.6B $13.0B $12.8B $15.1B $15.4B Personal Banking - Consumer Commercial Institutional - IAM Personal Banking - Private Wealth Asset Servicing Healthcare Institutional - IBIS Small Business Other 1.5% 3.7% 0.3% 0.2%
Slide 42: Personal Banking
$8.8B $10.2B $11.6B $12.8B $13.3B $1.2B $1.2B $1.4B $1.6B $1.6B Home Equity Lines of Credit $ in millions Assets Under Management $ in millions Personal Banking
Slide 43: Institutional Banking FDIC Sweep Program
Institutional Banking FDIC Sweep Program $ in billions 5-year CAGR 28.5%
Slide 44: Healthcare Services
Healthcare Services Healthcare Deposits and Assets $ in millions $430.5 $642.4 $917.5 $1,292.4 $1,692.7 Healthcare provided 9.9% of Total Company Deposits in 3Q’16 2012 2013 2014 2015 3Q’16 HSA investment assets as % of total healthcare deposits & assets 7.2% 7.4% 8.3% 9.2% 10.1% HSA deposits as % o
Slide 45: Healthcare Services – Growth & Potential
Industry information source: Devenir Research 2016 Midyear HSA Market Statistics & Trends report dated August 16, 2016. Data as of June 30, 2016. HCS represents a unique asset as one of the top 10 leaders in a high growth, niche market. Growth Rates – Deposits and Assets Healthcare Services – Growth
Slide 46: Multi-Channel Healthcare Strategy
Multi-Channel Healthcare Strategy UMB offers a modular and configurable platform of applications and services that deliver the underlying core banking functionality to our healthcare partners Broker/Employer TPAs Health Plans Technology Firms Payment Aggregators Healthcare Partners HCS Applications
Slide 47: Card Purchase Volumes
Card Purchase Volumes Purchase Volume & Interchange Revenue Commercial Credit Consumer Credit Consumer Debit Healthcare Debit Institutional Banking – IBIS Debit Interchange ($ in millions) $2.4B $1.4B $1.6B $2.1B $2.3B 1.4% 1.2% 1.6% 1.3% 1.4%
Slide 48: Appendix
Appendix
Slide 49: Peer Group Companies
Peer Group Companies Company Ticker BOK Financial Corporation BOKF CoBiz Financial Inc. COBZ Commerce Bancshares, Inc. CBSH Cullen/Frost Bankers, Inc. CFR First Midwest Bancorp, Inc. FMBI Hancock Holding Company HBHC Old National Bancorp ONB Prosperity Bancshares PB Signature Bank NY SBNY SVB Financ
Slide 50: Market Capture – UMB vs. Peers vs. Indices
Market Capture – UMB vs. Peers vs. Indices Source: Thomson Reuters
Slide 51: Overall Market Capture
Overall Market Capture Overall Capture Ratio & Total Return 10/01/06 – 9/30/16 Source: Thomson Reuters
Slide 52: UMB Financial Third Quarter 2016
UMB Financial Third Quarter 2016 October 25, 2016