Umb Financial Corporation · NASDAQ:UMBF
Umb Financial — Q2 2015 Earnings Presentation
35 slides from Umb Financial's earnings presentation, Jul 28, 2015
Slide 1: Strength in Balance.
Exhibit 99.2 Strength in Balance. UMB Financial July 28, 2015
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 2015 Performance Highlights
2Q 2015 Performance Highlights
Slide 4: Earnings Summary – 2Q 2015
Earnings Summary – 2Q 2015 $ in thousands, except per-share data; unaudited % variance 2Q'15 2Q'14 1Q'15 vs. 2Q'14 vs. 1Q'15 Net Interest Income $ 97,360 $ 86,170 $ 90,358 13.0 7.7 Noninterest Income 119,550 134,001 125,207 (10.8) (4.5) Pre-Provision Net Revenue 216,910 220,171 215,565 (1.5) 0.6 Non
Slide 5: Key Performance Metrics
Key Performance Metrics 2Q'15 1Q'15 4Q'14 3Q'14 2Q'14 ROAE 6.95% 8.18% 6.47% 8.77% 8.77% ROAA 0.70% 0.81% 0.66% 0.90% 0.89% Efficiency Ratio 76.41% 75.67% 77.46% 72.25% 73.18% Net Interest Margin 2.59% 2.46% 2.52% 2.53% 2.53% Noninterest Income % of revenue 55.1% 58.1% 55.9% 59.1% 60.9% Avg. Loan/De
Slide 6: Select Balance Sheet Items
Select Balance Sheet Items $ in thousands, average balances; unaudited Three Months Ended % variance June 30, 2015 June 30, 2014 March 31, 2015 vs. June '14 vs. Mar '15 Avg. Balance Avg Yield Avg. Balance Avg Yield Avg. Balance Avg Yield Assets / Rate % / Rate % / Rate % Loans, net of unearned inter
Slide 7: Consistent Loan Growth
Consistent Loan Growth End-of-Period Total Loans 2Q’15 UMBF Total Loans $8.9 * +28.8% vs. 2Q’14 $7.5 $6.9 $6.3 $5.3 $4.7 $4.4 *On May 31, 2015, we closed the acquisition of Marquette Financial Companies and loans with an acquired value of $980.3 million were added to the UMB portfolio. At June 30, t
Slide 8: UMB and Marquette Loans
UMB and Marquette Loans Legacy UMB Legacy Marquette Loans Loans (000s) June 30, 2014March 31, 2015May 31, 2015* June 30, 2015 vs. June '14vs. Mar '15 vs. May '15 Legacy UMB Loans 6,920,683 7,498,308 - 7,916,178 14.4% 5.6% n/a - - 980,250 999,950 n/a n/a 2.0% Legacy Marquette Loans Total 6,920,683 7,
Slide 9: Quality Credit Metrics
Quality Credit Metrics Net Charge-Offs $000’s $4,758 $3,985 $4,176 $3,713 0.24% 0.22% 0.23% 0.23% $1,661 0.09% 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 Net Charge-offs NCOs/Avg. Loans Nonperforming Loans $000’s $37,649 $32,662 $29,187 $27,175 $27,382 0.46% 0.39% 0.39% 0.42% 0.37% 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15
Slide 10: High Quality Investment Portfolio
High Quality Investment Portfolio Investment Mix AFS Portfolio Statistics Securities Available for Sale $6.9 billion June 30, 2015 Roll off Purchased 1.2% ($ millions) Yield ($ millions) Yield 3Q'14 $244 1.98% $311 1.45% 5.1% 4Q'14 $285 2.12% $382 1.55% 1Q'15 $333 2.02% $709 1.89% 11.7% 2Q'15 $299 1
Slide 11: Deposit Growth
Deposit Growth Deposits & Percent of Free Funds Actual EOP Balances; $ billions $14.5 $15.0 $11.7 $12.2 $12.0 $9.9 $10.3 40.6% 41.7% 44.4% $9.0 38.5% 40.8% $6.0 $3.0 $0.0 Interest Bearing Non-Interest Bearing 2Q 2015 Cost of Interest-Bearing Liabilities 0.19% Including DDA 0.12% 11
Slide 12: Balance Sheet – Strong Capital Position
Balance Sheet – Strong Capital Position Common Equity Tier 1 Ratio vs. Industry Average Equity 2Q 2015 ($ billions) 13.07% 12.64% $1.74 Industry $1.05 Median Capital Ratio Trends 14.43 14.04 13.77 13.61 13.29 12.77 12.64 11.92 11.05 9.56 8.72 8.41 6.81 2012 2013 2014 2Q'15* 2Q'10 2Q'15 Total Risk-Ba
Slide 13: Noninterest Income
Noninterest Income nd 000's 2Q'15 1Q'15 4Q'14 3Q'14 2Q'14 2 Quarter ‘15 Highlights Trust and securities processing 67,381 67,299 69,072 74,062 73,357 Noninterest income decreased $14.5 Trading and investment banking 5,568 6,122 4,840 3,826 6,409 million, or 10.8%, compared to 2Q’14 Service charges o
Slide 14: Noninterest Income Composition – 2Q 2015
Noninterest Income Composition – 2Q 2015 2.4% 0.8% 0.5% Trust & Securities Processing 3.0% Trust & Securities Processing Composition: Deposit Service Charges ($ millions) 4.6% Bankcard Fees Source of income: 2Q'15 2Q'14 Gains on Sale of Securities 15.1% Institutional Investment Mgmt. $25.7 $33.8 Tra
Slide 15: Noninterest Expense
Noninterest Expense nd 000's 2Q'15 1Q'15 4Q'14 3Q'14 2Q'14 2 Quarter ’15 Highlights Salaries and employee benefits 99,585 98,537 90,115 90,041 89,532 Noninterest expense increased $5.8 million, or 3.5%, compared to 2Q’14. Occupancy, net 10,312 10,010 10,312 10,475 9,705 Equipment 15,410 14,172 14,61
Slide 16: Prairie Capital Management Summary
Prairie Capital Management Summary Select Components of Noninterest Income and Expense Related to PCM (unaudited) 2Q'14 1Q'15 2Q'15 Related Component of Noninterest Income - Equity Earnings on Alternative Investments Hedge Fund Performance Fees / Investment Returns (2) 15,559 223,789 Private Equity
Slide 17: Business Segment Updates - 2Q 2015
Business Segment Updates - 2Q 2015
Slide 18: Bank
Bank Segment Results $ in 000s, unaudited 3 mos Ended % Change 3 mos Ended % Change June 30, Y/Y March 31, LQ 2015 2014 2015 $ 82,758 $ 72,481 14.2% $ 75,327 9.9% 2,612 2,686 -2.8% 1,600 63.3% 47,548 56,024 -15.1% 51,551 -7.8% 107,293 100,788 6.5% 100,748 6.5% 20,401 25,031 -18.5% 24,530 -16.8% 4,91
Slide 19: Bank – Loan Composition
Bank – Loan Composition Diverse Loan Book (Actual Loan Balances at June 30) $8.9B 1.1% 3.2% 7.8% 4.9% $6.9B 1.0% $6.3B 4.4% 0.9% 4.9% 8.7% 26.8% $5.3B 9.0% 4.3% $4.7B 6.0% 1.0% 3.9% 4.4% 2.8% 10.5% 25.0% 1.4% 6.7% 24.8% 3.7% 1.2% 10.6% 3.4% 2.4% 4.2% 1.7% 1.7% 25.4% 1.8% 28.3% 1.5% 2.0% 2.8% 2.0% 46
Slide 20: Bank – Lending
Bank –Lending Loans by Region (Actual Loan Balances at June 30) $8.9B $107.4 $219.4 $355.7 $223.1 $500.9 * $6.9B $550.7 $201.8 $6.3B $345.0 $692.0 $189.2 $88.5 $355.1 $452.2 ** $5.3B $437.0 $794.3 $637.9 $4.7B $277.9 $145.9 $591.1 $340.1 $889.9 $111.4 $404.6 $229.8 $205.8 $748.9 $405.5 $509.3 $723.2
Slide 21: Bank – Deposits
Bank – Deposits Diverse Sources of Deposits (Actual Deposits at June 30) $14.5B 4.3% 3.6% $11.7B $12.2B 5.8% 5.4% 6.0% $10.3B 7.4% 4.6% 1.3% 6.7% $9.9B 4.5% 0.1% 7.2% 7.2% 7.0% 7.4% 0.1% 7.6% 11.5% 4.7% 7.9% 4.2% 7.6% 14.1% 6.2% 1.3% 6.3% 8.9% 8.2% 4.7% 8.2% 3.8% 1.9% 2.6% 7.4% 1.8% 24.8% 25.9% 31.7
Slide 22: Bank – Asset Mgmt. & Home Equity Lending
Bank – Asset Mgmt. & Home Equity Lending Assets Under Management $ in millions $12.5B $11.6B $432 $10.2B $419 $8.8B $351 $3,677 $7.6B $226 $3,603 $2,853 $188 $2,219 $2,035 $7,610 $8,370* $6,390 $7,044 $5,366 2011 2012 2013 2014 2Q'15 Personal Banking - Private Wealth & Institutional - IAM Prairie Ca
Slide 23: Institutional Investment Management
Institutional Investment Management Institutional Investment Management Segment Results $ in 000s, unaudited 3 mos Ended % Change 3 mos Ended % Change June 30, Y/Y March 31, LQ 2015 2014 2015 Net Interest income $ - $ (1) 100.0% $ 1 -100.0% Noninterest income 25,684 33,999 -24.5% 27,084 -5.2% Nonint
Slide 24: Institutional Investment Management
Institutional Investment Management Total AUM $19.7B $23.5B $31.2B $31.2B $30.0B $2.8 $2.9 $2.7 $0.8 $12.6 $0.6 $18.1 $18.5 $11.4 $10.3 $3.2 $0.9 $0.6 $2.4 $2.1 $12.6 $10.4 $8.2 $7.8 $6.7 2011 2012 2013 2014 2Q'15 Equity Mutual Funds Equity Institutional & Other Fixed Income Institutional & Other Fi
Slide 25: Institutional Investment Management
Institutional Investment Management AUM Drivers $ in millions Total Change Total AUM ($millions) ($millions) ($51.0) $262.6 ($97.2) 2Q’15 ($682.1) ($567.7) $30,039.7 ($79.3) $172.0 1Q’15 ($1,111.0) $447.5 ($570.7) $30,607.4 ($166.3) $55.6 4Q’14 ($2,314.6) $2,976.0 $550.7 $31,178.1 ($18.6) $263.8 3Q’
Slide 26: AUM by Strategy – As of June 30, 2015
AUM by Strategy – As of June 30, 2015 Equity Fixed Income 3.0% 0.5% 3.8% 29% 4.3% 4.3% 11.5% 71% 31.3% 56.8% 35.9% 18.4% 30.2% Equity Strategies Fixed Income Strategies International Other: Core Plus Intermediate Emerging Markets Mid Cap Unconstrained Other: Global International ADR Equity Opportuni
Slide 27: Payment Solutions
Payment Solutions Payment Solutions Segment Results $ in 000s, unaudited 3 mos Ended % Change 3 mos Ended % Change June 30, Y/Y March 31, LQ 2015 2014 2015 Net interest income $ 13,599 $ 12,390 9.8% $ 14,033 -3.1% Provision for loan losses 2,388 2,314 3.2% 1,400 70.6% Noninterest income 23,293 21,20
Slide 28: Payment Solutions
Payment Solutions Total Card Purchase Volume & Interchange Revenue $2.3B $2.2B 1.4% 1.6% $1.7B 1.1% $1.5B 52.7% 60.2% $1.4B 1.3% Interchange Sources 1.5% 43.5% 2Q'15 ($millions) 36.3% $19.6 Credit 13.1 33.8% $18.4 Debit 2.6 $17.1 $16.5 $15.6 Healthcare 3.9 TOTAL $ 19.6 22.6% 18.5% 26.3% 12.3% 27.7%
Slide 29: Payment Solutions – Healthcare Services
Payment Solutions – Healthcare Services Healthcare Purchase Volume Trends $millions $1,393.0 $1,379.7 $1,150.0 $1,152.1 $1,082.9 $1,052.3 $881.3 $748.6 $682.2 0.36% $680.2 $649.1 0.33% $536.4 0.36% $461.2 $448.0 $421.4 0.28% $393.8 0.29% $350.0 41.0% 34.3% 32.5% 37.7% 29.0% 22.7% 16.9% 23.4% 8.9% Vi
Slide 30: Payment Solutions – Healthcare Services
Payment Solutions – Healthcare Services Healthcare Deposits and Assets $millions $1,177.9 Healthcare provided $99.4 7.4% of Total Deposits $917.5 in 2Q’15 $75.8 $642.4 $47.4 $430.5 $1,078.5 $323.3 $30.9 $841.7 $24.9 $595.0 $399.6 $298.4 2011 2012 2013 2014 2Q'15 HSA Deposits HSA Investment Assets In
Slide 31: Asset Servicing
Asset Servicing Asset Servicing Segment Results $ in 000s, unaudited 3 mos Ended % Change 3 mos Ended % Change June 30, Y/Y March 31, LQ 2015 2014 2015 Net interest income $ 1,003 $ 1,300 -22.8% $ 997 0.6% Noninterest income 23,025 22,777 1.1% 23,434 -1.7% Noninterest expense 19,987 18,854 6.0% 21,2
Slide 32: Asset Servicing
Asset Servicing Fund Accounting & Administration Alternative Asset Servicing $72.1 $72.0 $71.9 $35.8 $37.1 $63.0 $31.5 $27.9 $26.3 $44.1 249 252 248 604 219 579 579 179 532 514 2012 2013 2014 1Q'15 2Q'15 2012 2013 2014 1Q'15 2Q'15 Assets Under Administration # of Funds Serviced Assets Under Administ
Slide 33: Appendix
Appendix UMB Financial Corporation Second Quarter 2015
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation We provide information using the tangible book value (TBV) of Marquette Financial Companies (MFC). This information supplements the results that are reported according to generally accepted accounting principles (GAAP) and should not be viewed in isolation from, or as a subst
Slide 35: Strength in balance – today and tomorrow.
Strength in balance – today and tomorrow. UMB Financial Second Quarter 2015