Slide 1: UMB Financial Fourth Quarter 2019
UMB Financial Fourth Quarter 2019 January 28, 2020 Exhibit 99.2
Slide 2: Cautionary Notice about Forward-Looking Statements
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 sta
Slide 3: Earnings Summary – 4Q 2019
Earnings Summary – 4Q 2019 $ in thousands, except share and per share data; unaudited Non-GAAP adjustments include acquisition and divestiture income and expense, severance expense and the cumulative tax impact of these adjustments. See the non-GAAP reconciliations and additional information on thes
Slide 4: Earnings Summary – Full-Year 2019
Earnings Summary – Full-Year 2019 $ in thousands, except share and per share data; unaudited Non-GAAP adjustments include acquisition and divestiture income and expense, severance expense and the cumulative tax impact of these adjustments. See the non-GAAP reconciliations and additional information
Slide 5: Select Balance Sheet Items
Select Balance Sheet Items $ in thousands, average balances; unaudited Three Months Ended
Slide 6: Key Performance Metrics
Key Performance Metrics This represents a non-GAAP measure. See slides 41 and 42 for additional disclosures and reconciliations related to these non-GAAP financial measures.
Slide 7: oni6
oni6 = BA = = —— = a = == = = == = = ==> 8B BA | A
Slide 8: Consistent Loan Growth
Consistent Loan Growth Average Total Loans 5 Year CAGR 12.5%
Slide 9: Loan Composition
Loan Composition Diverse Loan Book (Average loan balances for the three months ended December 31 of the indicated year) Commercial Credit Card Commercial & Industrial HELOC Residential Real Estate Real Estate Construction Commercial Real Estate Consumer Credit Card Consumer Other Factoring Loans Ass
Slide 10: Geographic Diversity
Colorado Kansas City Kansas Greater MO St. Louis Arizona Texas Oklahoma Marquette Transportation Fin (Natl. Sales) Nebraska Marquette Business Credit (Natl. Sales) Geographic Diversity Loans by Region (Average loan balances for the three months ended December 31 of the indicated year) Percentages le
Slide 11: Loan Activity
Loan Activity $ in millions 4Q119 3Q119 219 19119 418 Gross Loan Production 1,021.6 850.3 844.2 9304 709.4 Revolving Balance Changes 29.9 (143.6) 83 (139.9) 106.2 Net Charge-offs (7.6) (22) (12.6) (12.3) (45.7) Payoffs (885.8) (2744) = (287.3) += (194.2) (149.4) Paydowns (270.2) (2866) (202.0) += (2
Slide 12: High Quality Investment Portfolio
High Quality Investment Portfolio Securities Held to Maturity $1.1 billion at December 31, 2019 Securities Available for Sale $7.4 billion at December 31, 2019 Governmental Other Higher Education Healthcare Utility Social Service Industrial Cultural Civic K-12 Education NFP - Other Average Balance:
Slide 13: Securities and Loan Statistics
Securities and Loan Statistics (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 December 31, 2019 Variable Rate Loans: $8.2 billi
Slide 14: Diverse Sources of Deposits
Diverse Sources of Deposits (Average deposits for the three months ended December 31 of the indicated year) Deposit Composition Personal Banking - Consumer Commercial Institutional Banking Personal Banking - Private Wealth Institutional Banking - Asset Servicing Healthcare Personal Banking - Small B
Slide 15: Strong Capital Position
Strong Capital Position Capital Ratio Trends (%) Total Risk-Based Capital Tier 1 Risk-Based Capital Tier 1 Leverage Common Equity Tier 1
Slide 16: Asset Quality
Asset Quality
Slide 17: Current Expected Credit Loss (CECL) Implementation
Current Expected Credit Loss (“CECL”) Implementation Current capital levels allow us to absorb anticipated CECL Day 1 impact Estimates are subject to change based on continuing review of models and assumptions, portfolio performance, changes in forecasted macroeconomic conditions and loan mix Day 1
Slide 18: Net Charge-Off History
Net Charge-Off History (1) Commercial Loans includes commercial and industrial, commercial credit card, asset-based and factoring loans. (2) Other includes all real-estate related loans (commercial, residential and HELOC), plus consumer loans and DDA charge-offs.
Slide 19: Loan Classification Trends
Loan Classification Trends % of total loans 0.0% 1.0% 2.0% 3.0% Definitions: “Watch” – This rating represents credit exposure that presents higher than average risk and warrants greater than routine attention due to conditions affecting the borrower, the borrower’s industry or the economic environme
Slide 20: AG AGS as
AG AGS as Oya y iis 2) . ZF _ —AGIV
Slide 21: Noninterest Income – 4Q 2019
Noninterest Income – 4Q 2019 4th Quarter ‘19 Drivers Noninterest income increased $6.7MM, or 6.5%, compared to 3Q’19, primarily driven by: A $1.6MM, or 3.6% increase in trust and securities processing, related to improvements in fund services and corporate trust revenue; A $1.0MM increase in trading
Slide 22: Noninterest Income Composition – 4Q 2019
Bankcard Fees Noninterest Income Composition – 4Q 2019 Service Charges on Deposit Accounts Trust & Securities Processing Gains on Sales of Securities Trading & Investment Banking Other Brokerage Fees Trust & Securities Processing Composition: ($ in millions) Insurance Fees & Commissions Source of In
Slide 23: Noninterest Income – Full-Year 2019
Noninterest Income – Full-Year 2019 Note: Table represents noninterest income from continuing operations and excludes income from Scout Investments, which was sold in 2017.
Slide 24: Noninterest Income Composition – Full-Year 2019
Bankcard Fees Noninterest Income Composition – Full-Year 2019 Service Charges on Deposit Accounts Trust & Securities Processing Gains on Sales of Securities Trading & Investment Banking Other Brokerage Fees Trust & Securities Processing Composition: ($ in millions) Insurance Fees & Commissions Sourc
Slide 25: Noninterest Expense – 4Q 2019
Noninterest Expense – 4Q 2019 Operating noninterest expense, which excludes the impact of acquisition and divestiture expense and severance expense, was $202.8 million for the fourth quarter of 2019, an increase of $11.6 million, or 6.0 percent, compared to the linked quarter, and an increase of $21
Slide 26: Noninterest Expense – Full-Year 2019
Noninterest Expense – Full-Year 2019 Operating noninterest expense, which excludes the impact of acquisition and divestiture expense and severance expense, was $777.0 million for 2019, an increase of $65.0 million, or 9.1 percent, compared to 2018. See slides 41 and 42 for a reconciliation of this n
Slide 27: Segment Updates
Segment Updates
Slide 28: Commercial Banking
Commercial Banking Commercial Banking Loans Average $ in billions Commercial Banking Deposits Average $ in billions Demand Deposits Interest-Bearing Deposits
Slide 29: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE & Construction Lending (Average loan balances for the three months ended December 31 of the indicated year) Investment CRE Owner Occ. CRE Construction Farmland Multi-Family CRE Residential Construction (1) Percentages less than 5% have been omitted.
Slide 30: Institutional Banking
Institutional Banking Demand Deposits Interest-Bearing Deposits Institutional Banking Deposits Average $ in billions
Slide 31: Institutional Banking – Business Description
Institutional Banking – Business Description Banking services for 4 of the top 10 broker-dealers FDIC sweep solutions; liquidity alternative to overnight funds Expanded to include Fintech clients as a channel for services in 2019 Fixed income services for banks, institutional, municipal & corporate
Slide 32: Personal Banking
Personal Banking Personal Banking Deposits Average $ in billions Personal Banking Loans Average $ in billions Consumer & Small Business Private Banking
Slide 33: Personal Banking – HELOC and Assets Under Management
Home Equity Lines of Credit $ in billions Assets Under Management $ in billions Personal Banking
Slide 34: Healthcare Services
Healthcare Services Healthcare Deposits & Assets End-of-period balances; $ in billions 2015 2016 2017 2018 2019 HSA deposits as % of total UMB deposits 7.8% 9.7% 11.4% 12.5% 12.7% HSA Deposits HSA Investment Assets
Slide 35: 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 36: Healthcare Services – Industry Statistics
Healthcare Services – Industry Statistics Industry information source: Devenir Research 2019 Mid-Year HSA Market Statistics & Trends report dated August 27, 2019. Rankings as of 06/30/19. HCS represents a unique asset as one of the top 5 leaders in a growing niche market. Growth Rates – Deposits and
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) Percentages less than 5% have been omitted. (1)
Slide 38: Appendix
Appendix
Slide 39: Returning Capital to Our Shareholders
Dividend increase = 165.9% Industry Median* +59% increase *Industry is defined as publicly traded banks with dividend data reported for both 2005 and 2019, available at time of printing, 1/25/20. (142 banks) Source: S&P Global Returning Capital to Our Shareholders Annual Dividends Declared 2005 - 20
Slide 40: Long-Term Value Creation
Long-Term Value Creation Data as available at time of printing, 01/25/20. (1) See reconciliation of tangible book value per share on slide 43. *KBW Nasdaq Regional Bank Index (50 banks); **All publicly-traded banks with data reported for both 2004 and 2019; ***UMB traditional peer group (15 banks).
Slide 41: Non-GAAP Financial Measures
In this presentation, we provide information about net operating income from continuing operations, operating earnings per share from continuing operations-diluted (operating EPS-diluted), operating return on average equity (operating ROE), operating return on average assets (operating ROA), operati
Slide 42: Operating Noninterest Expense & Efficiency Ratio Reconciliation
(i) Calculated using the Company's marginal tax rate of 22.2% for periods beginning after December 31, 2017, as a result of the Tax Cuts and Jobs Act. All prior periods were calculated using the Company’s pervious marginal tax rate of 36.0% Operating Noninterest Expense & Efficiency Ratio Non-GAAP R
Slide 43: Tangible Book Value Non-GAAP Reconciliation
Tangible Book Value Non-GAAP Reconciliation Share count for December 31, 2004 adjusted for Company’s 2-for-1 stock split on May 31, 2006.