Umb Financial Corporation · NASDAQ:UMBF
Umb Financial — Q2 2019 Earnings Presentation
39 slides from Umb Financial's earnings presentation, Jul 30, 2019
Slide 1: UMB Financial Second Quarter 2019
UMB Financial Second Quarter 2019 July 30, 2019 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 – 2Q 2019
Earnings Summary – 2Q 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: Select Balance Sheet Items
Select Balance Sheet Items $ in thousands, average balances; unaudited Three Months Ended
Slide 5: Key Performance Metrics
Key Performance Metrics This represents a non-GAAP measure. See slides 37 and 38 for additional disclosures and reconciliations related to these non-GAAP financial measures.
Slide 6: oni6
oni6 = BA = = —— = a = == = = == = = ==> 8B BA | A
Slide 7: Consistent Loan Growth
Consistent Loan Growth Average Total Loans 5 Year CAGR 13.3%
Slide 8: Loan Composition
Loan Composition Diverse Loan Book (Average loan balances for the three months ended June 30 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 Asset-B
Slide 9: 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 June 30 of the indicated year) Percentages less t
Slide 10: Loan Activity
Loan Activity $inmillions 2a19 1Q19_ 4018 3Q18 2018 End-of-Period Total Loans $ 129003 $ 125497 $ 12,1782 $ 11,9647 § 11,6316 Gross Loan Production 844.2 930.4 709.4 7329 e441 Revolving Balance Changes 83 (139.9) 106.2 (188) (437) Net Charge-offs (126) (123) (457) (27) (2.0) Payoffs (2873) (1942) (1
Slide 11: High Quality Investment Portfolio
High Quality Investment Portfolio Securities Held to Maturity $1.1 billion at June 30, 2019 Securities Available for Sale $7.2 billion at June 30, 2019 Governmental Other Higher Education Healthcare Utility Social Service Industrial Cultural Civic K-12 Education NFP - Other Average Balance: $7.0 bil
Slide 12: 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 June 30, 2019 Variable Rate Loans: $8.3 billion o
Slide 13: Diverse Sources of Deposits
Diverse Sources of Deposits (Average deposits for the three months ended June 30 of the indicated year) Deposit Composition Personal Banking - Consumer Commercial Institutional Banking Personal Banking - Private Wealth Institutional Banking - Asset Servicing Healthcare Personal Banking - Small Busin
Slide 14: 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 15: Asset Quality
Asset Quality
Slide 16: 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 17: 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 18: AG AGS as
AG AGS as Oya y iis 2) . ZF _ —AGIV
Slide 19: Noninterest Income – 2Q 2019
Noninterest Income – 2Q 2019 Noninterest income decreased $2.0MM, or 1.8%, compared to 1Q’19, primarily driven by: A decrease of $2.2MM in gains on sales of securities, with a loss of $1.4MM realized in the 2nd quarter; A decrease of $3.4MM in company-owned life insurance income, recorded in other i
Slide 20: Noninterest Income Composition – 2Q 2019
Bankcard Fees Noninterest Income Composition – 2Q 2019 Service Charges on Deposit Accounts Trust & Securities Processing Insurance Fees & Commissions Other Brokerage Fees Trading & Investment Banking Trust & Securities Processing Composition: ($ in millions) Losses on Sales of Securities Source of I
Slide 21: Noninterest Expense – 2Q 2019
Noninterest Expense – 2Q 2019 Operating noninterest expense, which excludes the impact of acquisition and divestiture expense and severance expense, was $193.0 million for the second quarter of 2019, an increase of $3.0 million, or 1.6 percent, compared to the linked quarter, and an increase of $16.
Slide 22: Segment Updates
Segment Updates
Slide 23: Commercial Banking
Commercial Banking Commercial Banking Loans Average $ in billions Commercial Banking Deposits Average $ in billions Demand Deposits Interest-Bearing Deposits
Slide 24: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE & Construction Lending (Average loan balances for the three months ended June 30 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 25: Institutional Banking
Institutional Banking Institutional Banking Deposits Average $ in billions Demand Deposits Interest-Bearing Deposits
Slide 26: 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 27: Personal Banking
Personal Banking Personal Banking Deposits Average $ in billions Personal Banking Loans Average $ in billions Consumer & Small Business Private Banking
Slide 28: Personal Banking Update
Home Equity Lines of Credit $ in billions Assets Under Management $ in billions Personal Banking UPDATE
Slide 29: Healthcare Services
Healthcare Services Healthcare Deposits & Assets End-of-period balances; $ in billions 2015 2016 2017 2018 2Q’19 HSA deposits as % of total UMB deposits 7.8% 9.7% 11.4% 12.5% 13.6% HSA Deposits HSA Investment Assets
Slide 30: 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 31: Healthcare Services – Industry Statistics
Healthcare Services – Industry Statistics Industry information source: Devenir Research 2018 Year-End HSA Market Statistics & Trends report dated February 27, 2019. Rankings as of 12/31/18. HCS represents a unique asset as one of the top 5 leaders in a growing niche market. Growth Rates – Deposits a
Slide 32: 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 33: Appendix
Appendix
Slide 34: Returning Capital to Our Shareholders
Dividend increase = 172.1% Industry Median +51.4% increase Industry is defined as all publicly traded banks with dividend data reported for 2004 and 2018. Source: S&P Global Returning Capital to Our Shareholders Annual Dividends Declared 2004 - 2018
Slide 35: Long-Term Value Creation
Long-Term Value Creation Data as available at time of printing, 07/19/18. (1) See reconciliation of tangible book value per share on slide 39. *KBW Nasdaq Regional Bank Index (50 banks); **All publicly-traded banks with data reported for 2003 and 2018; ***UMB traditional peer group (15 banks). Sourc
Slide 36: Long-Term Shareholder Return
Long-Term Shareholder Return +32% +207% +229% December 31, 2003 – December 31, 2018 Reinvesting all dividends Source: S&P Global
Slide 37: Non-GAAP Reconciliation
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 38: Operating Noninterest Expense & Efficiency Ratio Non-GAAP Reconciliation
(i) Calculated using the Company's marginal tax rate of 22.2%. Operating Noninterest Expense & Efficiency Ratio Non-GAAP Reconciliation Operating EPS-diluted is calculated as diluted earnings per share as reported, adjusted to reflect, on a per share basis, the impact of excluding the non-GAAP adjus
Slide 39: Tangible Book Value Non-GAAP Reconciliation
Tangible Book Value Non-GAAP Reconciliation Share count for December 31, 2003 adjusted for Company’s 2-for-1 stock split on May 31, 2006. In this presentation, we provide information about tangible book value per share, which is a non-GAAP financial measure. This information supplements the results