Umb Financial Corporation · NASDAQ:UMBF
Umb Financial — Q4 2024 Earnings Presentation
57 slides from Umb Financial's earnings presentation, Jan 29, 2025
Slide 1: 4th Quarter 2024 Update
4 Quarter 2024 th Update Kansas City, MO January 28, 2025
Slide 2: Presentation Index
Presentation Index Corporate Overview 3 Acquisition Update 7 Our Investment Thesis 10 4th Quarter 2024 Results 18 Line of Business Updates 34 Appendix 45 Board of Directors HTLF Financial Update Forward-Looking Statements Peer Group Non-GAAP Reconciliations Please refer to the Forward-Looking Statem
Slide 3: Corporate Overview
Corporate Overview Highlights Founded 1913 Ticker UMBF - Nasdaq Market Cap $5.5 B Total Assets $50.4 B Gross Loans $25.6 B Total Deposits $43.1 B Private Wealth Customer Assets (1) $16.5 B Institutional Assets Under Administration (AUA) (2) $525.9 B UMB Financial Corporation Headquarters Common Equi
Slide 4: Business Model: Our Diverse Foundation
Business Model Our Diverse Foundation Commercial & Personal Banking Services 4Q’24 Revenue: $271.3 million. 4Q’24 Average Deposits: $23.1 billion (1) Commercial Consumer Private Wealth Average loans: $21.3B (2) Average loans: $3.3B (2) (3) AUM = $14.0B Average deposits: $15.9B Average deposits: $7.2
Slide 5: Beyond Financials: Our Culture
Beyond Financials Our Culture Our Vision Our Values Creating an unparalleled customer experience requires a culture where our people feel part of something more, something bigger. We foster this experience through our policies, our business Customers First decisions and our expectations of each asso
Slide 6: Beyond Financials: Our Commitment to Corporate Citizenship
Beyond Financials Our Commitment to Corporate Citizenship Inclusion & Diversity Strong Corporate Governance Effective governance practices preserve the confidence and We want our company to be as diverse as the world we live in. trust of our stakeholders. ▪ As an early CEO Action for Diversity and I
Slide 7: Acquisition Update
Acquisition Update Minneapolis, MN
Slide 8: HTLF Acquisition – Strategically Compelling
HTLF Acquisition – Strategically Compelling Creating a ~$68B Asset Regional Champion Builds Presence in Midwest & Southwest ✓ Increases density in existing markets ✓ Expands into attractive new geographies ✓ Top 10 deposit market share ranking in 5 states (5) Market Pro Forma Deposits (5) State Curr
Slide 9: Acquisition Update: Progress
Acquisition Update Progress ▪ Submitted regulatory applications and filed S-4 / proxy statement; June - July ▪ Received approval from shareholders of both UMBF and HTLF; August 6, 2024 ▪ Our integration program governance structure continues to facilitate planning and execution ❑ Functional teams wi
Slide 10: Our Investment Thesis
Our Investment Thesis St. Louis, MO
Slide 11: Investment Thesis: Opportunity in Our Diverse Business Model
Investment Thesis Opportunity in Our Diverse Business Model Runway for Growth Solid capital levels and ample liquidity sources ▪ Strong regulatory capital ratios ▪ Access to multiple contingent funding sources Diverse deposit base across multiple lines of business, customer segments and geographies
Slide 12: Differentiated Revenue Profile: Multiple Sources of Growth
Differentiated Revenue Profile Multiple Sources of Growth Net Interest Income 20 Year CAGR 9.0% $1,000.9 $913.8 $920.1 $815.5 $731.2 $670.9 $610.4 $558.9 $495.3 $412.1 $320.1 $333.3 $350.1 $303.0 $310.6 $317.0 $275.1 $179.1 $217.2 $232.7 $188.3 Annual NII -7% 5% 15% 7% 18% 10% 3% 2% 1% 4% 5% 18% 20%
Slide 13: Balance Sheet Growth Across All Business Cycles
Balance Sheet Growth Across All Business Cycles Average Loans (1) 20 Year CAGR 11.4% Annual Loan Growth 7% 13% 14% 9% 7% 5% 2% 6% 10% 18% 12% 21% 19% 9% 7% 10% 10% 12% 19% 19% 8% Conservative Loans / Deposits (%) 20-year Avg: 61% Average Deposits 20 Year 2.78% CAGR 10.3% 1.51% 1.23% 0.54% Average De
Slide 14: Resilient Credit Metrics Through All Economic Environments
Resilient Credit Metrics Through All Economic Environments Net Charge-Offs / Average Loans ’04 – ‘24 Average 0.27% 0.52% 0.18% 0.10% UMBF Peer Median (1) Industry (2) Nonperforming Loans / Loans ’04 – ‘24 Average 0.38% 0.86% 0.33% 0.08% UMBF Peer Median (1) Industry (2) (1) UMB peers (15 banks), as
Slide 15: Capital & Liquidity Supports Growth Outlook
Capital & Liquidity Supports Growth Outlook Tier 1 Capital Ratio Equity / Assets 20% Tangible Equity / Tangible Assets (2) 15% 10% 5% 0% UMBF Peer Median (1) UMBF Equity / Assets UMBF TCE / Tang. Assets (2) Peer Median TCE / Tang. Assets (1) Cash & Securities / Assets (3) Average Loans / Average Dep
Slide 16: Risk-Adjusted Returns: Rowing Close to Shore
Risk-Adjusted Returns Rowing Close to Shore Risk-Weighted Assets / Assets UMBF Peer Median (1) Return on Risk-Weighted Assets (2) UMBF Peer Median (1) (1) UMB peers (15 banks), data as of latest available annual period. Source: S&P Capital IQ. (2) The numerator for the calculation of Return on Risk-
Slide 17: Dividend Trends: Sustained Growth
Dividend Trends Sustained Growth Annual Dividends Declared (1) 2025 = $1.60 (2) +1.9% vs. 2024 +282.9% 2004 - 2024 (2) (1) Dividends adjusted for 2-for-1 stock split in 2006. (2) Annualized 2025 full-year dividend assumes all 4 quarterly dividends are declared at $0.40/share, consistent with 1Q 2025
Slide 18: 4th Quarter 2024 Financial Review
4th Quarter 2024 Financial Review Phoenix, AZ
Slide 19: 4Q 2024 Results At-A-Glance
4Q 2024 Results At-A-Glance $ millions, except per share amounts. 4Q ’23 3Q ’24 4Q ’24 Linked-Quarter Variance & Commentary Average Loans 23,109.1 24,387.2 25,289.8 +$903mm vs. 3Q24. Growth led by 17% LQ annualized growth in C&I and 14% LQ annualized growth in CRE (driven by industrial & multi-famil
Slide 20: 4Q 2024 Earnings Highlights
4Q 2024 Earnings Highlights Net Income & Net Operating Income (1) Operating PTPP Income (2) $166.9 $157.5 $154.6 $146.8 $134.9 $122.6 $120.7 $112.0 $110.4 $105.9 Net Income EPS Operating PTPP Income – gains/losses on inv. securities (3) Net Operating Income (1) Operating EPS (1) Operating PTPP Incom
Slide 21: Revenue Trends
Revenue Trends Linked-Qtr. Variance 4Q ’23 1Q ’24 2Q ’24 3Q ’24 4Q ’24 $∆ %∆ Interest Income 496.6 520.1 538.3 557.7 555.0 (2.7) (0.5) Interest Expense 266.1 280.6 293.2 310.3 286.0 (24.3) (7.8) Net Interest Income $ 230.5 $ 239.4 $ 245.1 $ 247.4 $ 269.0 $ 21.6 8.7% Trust & securities processing 66.
Slide 22: Net Interest Income
Net Interest Income Asset Yield and Liability Cost Trends $269.0 $245.1 $247.4 EA % $239.4 $230.5 IBL % COF % Liquidity Trends $ millions $3.9B $4.0B $3.7B $3.5B Pre- pandemic $2.6B $2.1B $ billions 8.4% 6.8% 8.8% 9.3% 9.5% 9.4% Net Interest Income NIM Spread Int-bearing due from banks Fed funds & r
Slide 23: Noninterest Income
Noninterest Income $165.2 Current Quarter Drivers $159.2 $158.7 Noninterest income increased $6.5mm or 4.1%, vs. 3Q’24. Primary drivers: $144.9 ▪ + $4.1mm gain on the sale of UMB Distribution Services in 4Q’24; $140.3 ▪ + $2.9mm in brokerage fees from higher 12b-1/money market income; ▪ + $2.6mm tru
Slide 24: Noninterest Expense
Noninterest Expense Linked-Qtr. Variance $ in millions 4Q ’23 1Q ’24 2Q ’24 3Q ’24 4Q ’24 $∆ %∆ Salary & Benefits 134.2 143.0 142.9 147.0 161.1 14.1 9.6 Occupancy 12.3 12.3 11.7 12.3 11.3 (1.0) (8.2) Equipment 16.6 16.5 15.6 16.0 15.3 (0.7) (4.2) Supplies & services 5.5 3.3 3.4 5.0 3.2 (1.8) (36.1)
Slide 25: Diversified Loan Portfolio
Diversified Loan Portfolio Linked-Qtr. Variance 4Q ’23 3Q ’24 4Q ’24 $∆ %∆ $ 25,290 Commercial & Industrial 10,128 10,386 10,840 454 4.4 $ 24,387 CRE/Construction 8,890 9,669 10,007 338 3.5 $23,806 $ 23,109 $ 23,354 Residential Real Estate 2,945 3,045 3,144 99 3.2 Credit Card 496 614 630 16 2.7 Cons
Slide 26: Quarterly Loan Activity
Quarterly Loan Activity 4Q ’23 1Q ’24 2Q ’24 3Q ’24 4Q ’24 Gross Loan Production $909.0 $771.2 $925.9 $1,366.3 $1,560.1 Revolving Balance Changes 381.3 344.4 501.7 299.8 101.7 Net (Charge-offs) Recoveries (1.4) (3.0) (2.9) (8.5) (8.9) (1) Payoffs (707.9) (293.4) (377.6) (520.6) (611.2) Paydow ns (1)
Slide 27: Strong Asset Quality
Strong Asset Quality Net Loan Charge-Offs (Recoveries) Delinquencies Net Charge-offs (Recoveries) NCOs / Average Loans Delinquencies (1) Delinquencies / Total Loans Nonperforming Loans Allowance for Credit Losses Nonperforming Loans NPLs / Total Loans Allowance for Credit Losses on Loans ACL / Total
Slide 28: Detailed Net Charge-Off History
Detailed Net Charge-Off History Annual 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total Net Charge-Offs $ 6,141 $ 7,673 $ 6,992 $ 8,273 $11,755 $20,258 $21,697 $24,135 $18,091 $14,175 $15,611 (Recoveries) $ thousands Average Total Loans $ 2,758 $ 3,110 $ 3,562 $ 3,888 $ 4,176 $ 4,356 $ 4
Slide 29: High-Quality Investment Portfolio
High-Quality Investment Portfolio Available-for-Sale (1) Held-to-Maturity (1) $7,414 $6,865 $6,778 $6,651 $6,408 $5,705 $5,653 $5,575 $5,499 $5,424 Average balances - $ millions Average balances - $ millions GNMA/GSE Mortgage-Backed General Obligation Municipals Corp. & Commercial Paper GSE Agencies
Slide 30: Securities Portfolio Statistics
Securities Portfolio Statistics Net Securities Portfolio Activity (1) Amortized Fair Unrealized Cost (4) Value (4) $ in millions $ in millions; as of 12/31/24 Loss (4) (3) (3) (3) 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Available for Sale Roll-off / Cash Flow $262 $619 $528 $341 337 Mortgage-backed 4,946 4,42
Slide 31: Diversified Deposit Mix
Diversified Deposit Mix Deposits by Line of Business $38,017 Brokered <1% $35,292 $34,341 Fund $33,526 Services $32,675 8% Commercial Capital Markets Institutional & Corp. Trust 12% Commercial Banking 42% Investor Solutions 11% Healthcare Services 8% Consumer & Private Wealth 19% Personal Linked-Qtr
Slide 32: Interest Rate Sensitivity
Interest Rate Sensitivity Impact to Net Interest Income Loan Maturities & Repricing Ramp Scenario ▪ 67% of total end-of-period loans, or ~ $17.2B, are variable. ▪ 70% of total loans reprice within the next 12 months. Of variable loans - % tied to indices for next 12 months: o 73% - 1-Month SOFR o 23
Slide 33: Capital & Liquidity Position
Capital & Liquidity Position Strong Capital Available Liquidity Sources Regulatory Capital Ratios As of December 31, 2024 $ billions Fed Discount Window $12.5 13.21% Cash & Due from Banks, inc. Fed account 8.4 11.29% UMBF Free Bond Collateral 2.5 ratio 10.00% 8.50% FHLB Advances 1.8 Unsecured Fed Fu
Slide 34: Line of Business Updates
Line of Business Updates Dallas, TX
Slide 35: Commercial Banking: Commercial Capabilities
Commercial Banking Commercial Capabilities Commercial Lending Portfolio Average Loan Balance & Composition $21.3B Middle Market ▪ C&I Lending ▪ Working capital lines Sm./Med Biz 4% ▪ Owner-Occupied CRE ▪ Equipment loans Specialized Verticals 10% Investment Real Estate ▪ Industrial ▪ Retail ▪ Multi-f
Slide 36: Commercial Banking: C&I Lending
Commercial Banking C&I Lending Commercial & Industrial Statistics C&I Industries as % of Total UMB Loans (1) ▪ Includes Middle Market, Lending Verticals and Small / Medium Business ▪ Considerations Transp. / Other (2) Warehouse ▫ Internal limits on loan size and projects per sponsor Finance & ▫ Conc
Slide 37: Commercial Banking: Commercial Real Estate
Commercial Banking Commercial Real Estate Commercial Real Estate Statistics Investment CRE as % of Total UMB Loans (1) ▪ Total CRE and Construction = 39.5% of UMB loans $10.1B Sr. Living Other (5) ▪ Owner-occupied – new purchase or refinance 1-4 Unit Rentals ▪ Real estate development – construction
Slide 38: Investment Real Estate: Select Property Details
Investment Real Estate Select Property Details Total Investment CRE Portfolio Office CRE Portfolio Average Loan-to-Value, Select Asset Classes MSA Diversification $ millions Statistics ▪ Industrial: 60% Dallas-Fort Worth-Arlington, TX $228 ▪ Average Loan: $8.9mm Kansas City, MO-KS 99 ▪ Multifamily:
Slide 39: Personal Banking: Consumer
Personal Banking Consumer Strategic & Stable Source of Low-Cost Funds High Customer Satisfaction Consumer plays a strategic role for UMB as a large and stable source of Consumer serves the personal banking needs of deposits. Poised for continued asset growth clients across all divisions of the bank
Slide 40: Personal Banking: Private Wealth Management
Personal Banking Private Wealth Management Customer Assets Wealth Management Non-Managed $14.0B AUA Personal ▪ Financial planning 15% Trust Other 25% ▪ Discretionary investment management 5% ▪ Strategic wealth solutions for ultra-high net worth Managed Assets IRAs families 6% (AUM) ▪ Business succes
Slide 41: Institutional Banking: Fund Services & Institutional Custody
Institutional Banking Fund Services & Institutional Custody Assets Under Administration Registered Funds & Alternative Investments Provides services for 2,500 funds, including registered and alternative $472B $482B investment funds, PE funds, real estate and venture capital funds and $460B ETFs and
Slide 42: Institutional Banking: Corporate Trust & Capital Markets
Institutional Banking Corp./Specialty Trust & Capital Markets Corporate Trust & Escrow Services Capital Markets Division Provides trustee, paying agent and escrow services to municipal Capital solutions including fixed income sales, trading and underwriting and corporate issuers. for institutional,
Slide 43: Institutional Banking: Investor Solutions & Healthcare Services
Institutional Banking Investor Solutions & Healthcare Services Investor Solutions $49B ~90mm Our banking as a service (BaaS) solution includes deposit services for checking, saving, and investment accounts, including expanded FDIC insurance through our proprietary Sweep Program. Sample BaaS Partners
Slide 44: Payments: Credit & Debit Card Products
Payments Credit & Debit Card Products Card Purchase Volume & Interchange Trends 4Q ’24 Card Spend $4,701 $4,658 $4,558 $4,575 $4,088 $4.6B +11.9% YoY #23 23rd in U.S. Credit Card Healthcare Debit Consumer Debit Inst. Cash Mgmt. Purchase Volume (1) Commercial Credit Consumer Credit Interchange Income
Slide 45: Appendix
Appendix Denver, CO
Slide 46: HTLF Financial Update
HTLF Financial Update Balance Sheet Items At, or for, the 3 months ended Unaudited, dollars in millions Dec. 31, 2024 Sept. 30, 2024 Dec. 31, 2023 Loans $11,156 $11,441 $11,725 Total customer Deposits (1) (2) $14,553 $14,351 $14,325 Demand Deposits (2) $3,774 $4,009 $4,369 Brokered Deposits $84 $602
Slide 47: Governance: Our Board of Directors
Governance Our Board of Directors Robin Beery Janine Davidson K.C. Gallagher Greg Graves Mariner Kemper Gordon Lansford CC (Chair), RC CC, GC AC, RC Lead Independent Chairman of AC (Chair), CC Director, GC (Chair) the Board Tim Murphy Tammy Peterman Kris Robbins Josh Sosland Leroy Williams AC, CC GC
Slide 48: Governance: New Directors to Join UMBF Board
Governance New Directors to Join UMBF Board (1) Five HTLF directors will join the UMB Financial Corporation Board Brad Henderson is the chief executive officer of P33, a nonprofit organization focused on inclusively driving Chicago’s global technology leadership, where he has served since July 2019.
Slide 49: Forward-Looking Statements
Forward-Looking Statements This presentation contains, and our other communications, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as ame
Slide 50: Forward-Looking Statements
Forward-Looking Statements In addition to factors previously disclosed in UMB’s and HTLF’s reports filed with the SEC, the following factors could cause actual results to differ materially from forward-looking statements or historical performance: The occurrence of any event, change, or other circum
Slide 51: Additional Information – HTLF Acquisition
Additional Information – HTLF Acquisition Market and Industry Data. Unless otherwise indicated, market data and certain industry forecast data used in this presentation were obtained from internal reports, as well as third party sources and other publicly available information. Data regarding the in
Slide 52: Peer Group
Peer Group ASB Associated Banc-Corp HWC Hancock Whitney Corporation BOKF BOK Financial Corporation ONB Old National Bancorp CADE Cadence Bank PNFP Pinnacle Financial Partners, Inc. COLB Columbia Banking System, Inc. PB Prosperity Bancshares, Inc. CBSH Commerce Bancshares, Inc. SNV Synovus Financial
Slide 53: Non-GAAP Reconciliations
Non-GAAP Reconciliations The following are non-GAAP measures used from time to time. To the extent a non-GAAP measure is used in this presentation, a reconciliation to such measure’s closest GAAP equivalent is provided below. UMB believes that these non-GAAP financial measures may be useful to inves
Slide 54: Non-GAAP Reconciliations: Net Operating Income
Non-GAAP Reconciliations Net Operating Income Three Months Ended Dec. 31, Sept. 30, Jun. 30, Mar. 31, Dec. 31, 2024 2024 2024 2024 2023 Net income (GAAP) $ 119,997 109,643 101,345 110,258 70,923 Adjustments: Acquisition expense 3,658 2,611 9,550 431 52 Severance expense 245 48 130 146 1,207 FDIC spe
Slide 55: Non-GAAP Reconciliations: Operating Pre-Tax, Pre-Provision Income
Non-GAAP Reconciliations Operating Pre-Tax, Pre-Provision Income Three Months Ended Dec. 31, Sept. 30, Jun. 30, Mar. 31, Dec. 31, 2024 2024 2024 2024 2023 Net interest income (GAAP) $ 268,974 247,376 245,108 239,434 230,522 Noninterest income (GAAP) 165,211 158,743 144,919 159,244 140,254 Noninteres
Slide 56: Non-GAAP Reconciliations: Tangible Common Equity Ratio
Non-GAAP Reconciliations Tangible Common Equity Ratio As of Dec. 31, Sept. 30, Dec. 31, Dec. 31, 2024 2024 2023 2004 Total shareholders' equity (GAAP) $ 3,466,541 3,535,489 3,100,419 819,182 Less: Intangible assets Goodwill 207,385 207,385 207,385 59,115 Other intangibles, net 63,647 65,564 71,012 4
Slide 57: Non-GAAP Reconciliations: Return on Tangible Common Equity
Non-GAAP Reconciliations Return on Tangible Common Equity & Operating Return on Tangible Common Equity Three Months Ended Dec. 31, Sept. 30, Dec. 31, 2024 2024 2023 Average shareholders' equity (GAAP) $ 3,527,765 3,454,874 2,954,967 Less: Average Intangible assets Average Goodwill 207,385 207,385 20