Umb Financial Corporation · NASDAQ:UMBF
Umb Financial — Q1 2014 Earnings Presentation
25 slides from Umb Financial's earnings presentation, Apr 22, 2014
Slide 1: Quality endures. First Quarter 2014
Quality endures. First Quarter 2014 Exhibit 99.3 UMB Financial
Slide 2: Earnings Summary
Earnings Summary $ in thousands, except per-share data; unaudited 1Q14 4Q13 1Q13 vs. 4Q13 vs. 1Q13 Net Interest Income 85,445 $ 85,914 $ 79,483 $ (0.5) 7.5 Noninterest Income 122,964 135,607 121,016 (9.3) 1.6 Total Revenue 208,409 221,521 200,499 (5.9) 3.9 Noninterest Expense 172,241 170,426 150,378
Slide 3: Net Interest Income +7.5%
Net Interest Income +7.5% Net Interest Income 1Q’14 vs. 1Q’13 • Loan Growth • Improved deposit pricing 2.90% 2.98% 2.98% 2.91% 2.75% 2.82% 2.80% 2.64% 2.51% 2.56% 2.61% 2.51% 2.39% $78.4 $79.9 $79.1 $79.5 $79.1 $80.4 $80.4 $80.2 $79.5 $82.3 $85.5 $85.9 $85.4 $65.0 $70.0 $75.0 $80.0 $85.0 $90.0 1Q'11
Slide 4: Noninterest Income Highlights
Noninterest Income Highlights 5 Year CAGR 23.5% 58.2% 12.7% Trust & Securities Processing Revenue Trust & Securities Processing Composition : Equity Earnings/Alternatives Trading & Investment Banking Other Deposit Service Charges Trust & Securities Processing Brokerage Fees Gains on Sale of Securiti
Slide 5: Noninterest Expense
NI Expense CAGR 10.1% Noninterest Expense Salary CAGR 8.9% NI Income CAGR 12.3% Noninterest expense increased 14.5% to $172.2 million vs. 1Q’13 • Salary and benefit expense increased $5.2 million or 6.2% compared to 1Q’13 • Expense for contingent consideration liabilities on acquisitions was $4.5 mi
Slide 6: Select Balance Sheet Items
Select Balance Sheet Items $ in thousands, average balances; unaudited vs. 4Q13 vs. 1Q13 Avg. Balance Avg. Balance Avg. Balance Assets Loans, net of unearned interest 6,678,932 $ 3.58 6,483,711 $ 3.62 5,814,855 $ 3.82 3.0 14.9 Total securities 6,997,052 1.98 6,969,863 1.97 6,866,546 1.98 0.4 1.9 Tot
Slide 7: Consistent Loan Growth
Consistent Loan Growth 5 Year CAGR 8.6% $4.4 $4.6 $5.1 $5.8 $6.7 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% Average Net Loans Average Loan Yield
Slide 8: Slide 8
Slide 9: High Quality Investment Portfolio
Average Balance, AFS: $6.7 billion Average Yield: 1.89% High Quality Investment Portfolio Securities Gains $ in thousands 1Q13 5,893 $ 2Q13 1,519 $ 3Q13 1,140 $ 4Q13 (10) $ 1Q14 1,470 $ Roll off Purchased ($ millions) Yield ($ millions) Yield 2Q13 $340 2.13% $815 1.41% 3Q13 $265 1.85% $77 1.02% 4Q13
Slide 10: Key Metrics
Key Metrics 0.25% 0.21% 0.20% 0.26% 0.23% 0.46% 0.40% 0.48% 0.47% 0.45% Credit Quality $ in thousands Performance Metrics Net Charge-Offs Nonperforming Loans ROAE/ROAA Efficiency Ratio/NIM 11.05% 9.31% 10.84% 9.08% 6.13% 0.96% 0.81% 0.92% 0.89% 0.58% 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 Return on Avg Equit
Slide 11: Business Segment Updates
Business Segment Updates
Slide 12: Bank
Bank 32.7% 32.3% 38.7% 39.7% 39.3% 5 yr CAGR 8.6% 5 yr CAGR 15.2% Quarter Highlights $ 8.4 $ 9.5 $ 10.3 $ 11.6 $13.1 1Q'10 1Q'11 1Q'12 1Q'13 1Q'14 Interest Bearing Non-Interest Bearing $4.4 $4.6 $5.1 $5.8 $6.7 1Q'10 1Q'11 1Q'12 1Q'13 1Q'14 Average Net Loans $ in billions Average Deposits $ in billio
Slide 13: Bank - Lending
Bank - Lending 46.7% 54.7% 27.7% 25.4% Diverse Loan Book (Actual Loan Balances at March 31) 10.3% 2.2% 8.6% 4.5% 8.4% 0.9% 6.2% 4.4% $4.7 $5.1 $6.0 $6.8 1Q'11 1Q'12 1Q'13 1Q'14 Commercial & Industrial Commercial Real Estate Consumer Real Estate Credit Card Consumer - Other Home Equity
Slide 14: Bank - Deposits
Bank - Deposits 29.4% 32.7% Diverse Sources of Deposits (Average Deposits for Three Months Ended March 31) 2.7% 4.1% 2.7% 7.7% 5.8% 4.2% 4.2% 5.6% 6.9% 6.9% 35.7% 24.5% 11.9% 15.0% $8.4 $9.5 $10.3 $11.6 1Q'11 1Q'12 1Q'13 1Q'14 Commercial/Treasury Mgmt Consumer Banking Asset Servicing Private Wealth
Slide 15: Bank – Commercial Banking
Bank – Commercial Banking 47.2% 45.9% 44.1% 42.8% 41.6% 5 yr CAGR 1Q ‘09–1Q’14 10.2% High Growth Regions 1Q’14 vs. 1Q’13 • Arizona +48.6% Commercial Loans By Region • St. Louis +28.3% • Oklahoma +18.4% Loan Balances $ in billions, Average C&I and CRE Loan Balances for Three Months Ended March 0% 50%
Slide 16: Bank – Private Wealth Mgmt. & Consumer Banking
Bank – Private Wealth Mgmt. & Consumer Banking $5,490 $5,366 $6,390 $7,044 $7,376 49.3% 48.2% 48.5% 46.3% 44.7% Assets Under Management $ in billions Home Equity Lines of Credit $ in billions $10.2B $10.9B $1,744 $2,035 $2,219 $2,853 $3,195 $152 $188 $226 $351 $364 1Q14 Private Wealth & Institutiona
Slide 17: Institutional Investment Management
A B x C E Institutional Investment Management C E AUM increased 25% year-over-year to $32.2 billion The Scout Equity Opportunity Fund was launched on March 28. Scout received approval for a UCITS structure during the quarter, allowing greater international distribution capabilities Total Scout Asset
Slide 18: Institutional Investment Management
Institutional Investment Management AUM Drivers $ in millions $2,204.5 $996.1 Total Change ($millions) $25,746.8 $32,163.5 Total AUM ($millions) $567.3 $26,314.1 $2,994.8 $29,308.9 $1,858.5 $31,167.4
Slide 19: Institutional Investment Management
Institutional Investment Management Total AUM $19.9B $19.7B $23.5B $31.2B $32.2B
Slide 20: AUM by Strategy – As of 1Q'14
52% 48% 66.2% 29.0% 32.4% 23.1% AUM by Strategy – As of 1Q’14 Equity Strategies International Mid Cap International ADR Emerging Markets Global Small Cap Other: Fixed Income Strategies Core Plus Low Duration Long Duration Core Intermediate Unconstrained Global Aggregate Real Return Equity Fixed Inco
Slide 21: Payment Solutions
$11.7 $14.7 $15.3 $16.6 Payment Solutions A B $1.04 $1.10 $1.06 $1.08 $1.31 $1.36 $1.29 $1.26 $1.58 $1.48 $1.37 $1.38 $1.79 $1.72 $1.64 $1.63 $2.10 $16.7 Purchase Volume ($ billions) Interchange ($ millions) Total debit and credit purchase volume increased by 17% year-over-year to surpass $2 billion
Slide 22: Payment Solutions
Payment Solutions 21.5% 18.6% 11.8% 35.9% 19.2% 11.1% Annual Purchase Volume by Card Type 43.6% 2.0% 2.5% 27.1% 3.5% 3.2%
Slide 23: Asset Servicing
Asset Servicing A B Total AUA increased by 18% to $195.5 billion year-over-year UMB Fund Services was recognized as the Best Administrator in North America as part of the 2014 Hedgeweek Awards st Quarter 2014 Highlights Assets Under Administration $billions Asset Servicing Operating Results $ in 000
Slide 24: Asset Servicing
Asset Servicing Fund Accounting & Administration Alternative Asset Servicing Custody Transfer Agency
Slide 25: Building a company for the next years
Building a company for the next 100 years. First Quarter 2014 UMB Financial