Umb Financial Corporation · NASDAQ:UMBF
Umb Financial — Q1 2018 Earnings Presentation
33 slides from Umb Financial's earnings presentation, Apr 24, 2018
Slide 1: UMB Financial First Quarter 2018
UMB Financial First Quarter 2018 April 24, 2018 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: 1Q 2018 Highlights
1Q 2018 Highlights
Slide 4: Earnings Summary – 1Q 2018
Earnings Summary – 1Q 2018 $ in thousands, except share and per share data; unaudited Non-GAAP adjustments include acquisition expenses, severance expense and the tax impact of these adjustments. See the non-GAAP reconciliations and additional information on these items on slides 32 and 33.
Slide 5: Key Performance Metrics
Key Performance Metrics See slides 32 and 33 for additional disclosures and reconciliations related to these non-GAAP financial measures. Beginning in Q1 2018, the Company revised the denominator of its Efficiency Ratio and Operating Efficiency Ratio calculations to use “Net Interest Income” in plac
Slide 6: Consistent Loan Growth
Consistent Loan Growth Average Total Loans 5 Year CAGR 13.8%
Slide 7: 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 8: Loan Classification Trends
Loan Classification Trends % of total loans 0.0% 1.0% 2.0% 3.0%
Slide 9: 1Q 2018 Financials
1Q 2018 Financials
Slide 10: Noninterest Income – 1Q 2018
Noninterest Income – 1Q 2018 Noninterest income decreased $508 thousand, or 0.5%, compared to 4Q’17, primarily driven by: a $900k decrease in trading and investment banking income, driven by lower market-related municipal trading volumes and unfavorable fair value adjustments; and a decrease of $600
Slide 11: Noninterest Income Composition – 1Q 2018
Bankcard Fees Noninterest Income Composition – 1Q 2018 Service Charges on Deposit Accounts Trust & Securities Processing Insurance Fees & Commissions Other Brokerage Fees Trading & Investment Banking Trust & Securities Processing Composition: ($ in millions) Gains on Sales of Securities Source of In
Slide 12: Noninterest Expense – 1Q 2018
Noninterest Expense – 1Q 2018 Operating noninterest expense, which excludes the impact of acquisition and divestiture expenses and severance expense, was $173.9 million for the first quarter 2018, a decrease of $8.4 million, or 4.6 percent, compared to the linked quarter, and an increase of $0.6 mil
Slide 13: Select Balance Sheet Items
Select Balance Sheet Items $ in thousands, average balances; unaudited Three Months Ended For first quarter 2018, securities yields, earning asset yields, net interest spread and net interest margin are computed using net interest income adjusted to a fully taxable equivalent ('FTE") basis assuming
Slide 14: Loan Paydowns, Payoffs, and Line Changes
Loan Paydowns, Payoffs, and Line Changes
Slide 15: Loan Composition
Loan Composition Diverse Loan Book (Average Loan Balances for the three months ended March 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 $6.7B $7.5B $9.5B $10.
Slide 16: 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 March 31 of the indicated year) High Growth Regio
Slide 17: High Quality Investment Portfolio
Securities Held to Maturity $1.2 billion at March 31, 2018 Securities Available for Sale $6.1 billion at March 31, 2018 High Quality Investment Portfolio Agencies Corporates Municipals Mortgage-Backed Securities Treasuries Governmental Other Higher Education Healthcare Utility Social Service Industr
Slide 18: 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 March 31, 2018 Variable Rate Loans: $7.1 billion
Slide 19: Diverse Sources of Deposits
Diverse Sources of Deposits (Average Deposits for the three months ended March 31 of the indicated year) Deposit Composition $13.1B $13.3B $15.4B $15.6B $16.8B Personal Banking - Consumer Commercial Institutional Banking Personal Banking - Private Wealth Institutional Banking - Asset Servicing Healt
Slide 20: Strong Capital Position
Strong Capital Position Capital Ratio Trends (%) 2015 - 2018 ratios calculated under Basel III requirements. Total Risk-Based Capital Tier 1 Risk-Based Capital Tier 1 Leverage Common Equity Tier 1
Slide 21: Business Segment Updates
Business Segment Updates
Slide 22: Commercial Banking
Commercial Banking Commercial Banking Loans $ in billions Commercial Banking Deposits $ in billions $5.5B $6.3B $8.1B $9.0B $9.7B Demand Deposits Interest-Bearing Deposits $4.3B $4.5B $4.7B $5.3B $5.5B
Slide 23: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE & Construction Lending (Average Loan Balances for the three months ended March 31 of the indicated year) $4.4B $4.0B $3.2B $2.2B $1.9B Investment CRE Owner Occ. CRE Construction Farmland Multi-Family CRE Residential Construction (1) Percentages less than 5% have
Slide 24: Institutional Banking
Institutional Banking Institutional Banking Deposits $ in billions Demand Deposits Interest-Bearing Deposits $3.4B $3.2B $4.2B $3.2B $3.8B
Slide 25: Institutional Banking – Business Description
Institutional Banking – Business Description Banking services for broker-dealers FDIC sweep solutions; liquidity alternative to overnight funds Fixed income services for banks, institutional & corporate clients Underwriting for healthcare, municipalities, educational institutions & corporate clients
Slide 26: Personal Banking
Personal Banking Personal Banking Deposits $ in billions Personal Banking Loans $ in billions Consumer & Small Business Private Banking $4.7B $4.5B $5.1B $5.3B $5.2B $1.4B $1.4B $1.5B $1.2B $1.2B
Slide 27: Personal Banking: HELOC and Assets Under Management
Home Equity Lines of Credit $ in billions $11.6B $12.8B $13.6B $14.8B $14.2B $1.2B $1.4B $1.6B $1.7B $1.6B Assets Under Management $ in billions Personal Banking
Slide 28: Healthcare Services
Healthcare Services Healthcare Deposits & Assets End-of-period balances; $ in billions 2014 2015 2016 2017 1Q’18 HSA deposits as % of total UMB deposits 6.2% 7.8% 9.7% 11.4% 13.2% HSA Deposits HSA Investment Assets $2.6 $2.4 $1.8 $1.3 $0.9
Slide 29: Multi-Channel Healthcare Strategy
Multi-Channel Healthcare Strategy UMB offers a modular and configurable platform of applications and services that deliver the underlying core banking functionality to our healthcare partners Broker/Employer TPAs Health Plans Technology Firms Payment Aggregators Healthcare Partners HCS Applications
Slide 30: Healthcare Services – Growth & Potential
Healthcare Services – Growth & Potential Industry information source: Devenir Research 2017 Year-End HSA Market Statistics & Trends report dated February 22, 2018. Rankings as of December 31, 2017. Deposit and asset growth rates on an annual basis as of December 31st of each respective year. HCS rep
Slide 31: Card Purchase Volumes
Card Purchase Volumes Purchase Volume & Interchange Revenue Commercial Credit Consumer Credit Consumer Debit Healthcare Debit Institutional Banking – IBIS Debit Interchange ($ in millions) $2.8B $2.1B $2.3B $2.7B $2.8B Percentages less than 5% have been omitted. (1)
Slide 32: 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 33: Operating Noninterest Expense & Efficiency Ratio Non-GAAP 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 marginal tax rate of 36.0%. Operating Noninterest Expense & Efficiency Ratio Non-GAAP Reconcilia