Umb Financial Corporation · NASDAQ:UMBF
Umb Financial — Shareholder Meeting (April 2015)
40 slides from Umb Financial's shareholder meeting presentation, Apr 28, 2015
Slide 1: Strength in Balance. Annual Meeting of Shareholders
Strength in Balance. Annual Meeting of Shareholders April 28, 2015 UMB Financial Exhibit 99.2
Slide 2: Agenda
Agenda Authenticity 2014 Performance & Highlights st Quarter 2015 Financials Questions & Answers
Slide 3: Genuine, Not easily replicated, Trustworthy, Original, Experienced, Strong, Consistent
Genuine Not easily replicated Trustworthy Original Experienced Strong Consistent
Slide 4: Continuity – We're in it for the long run
Continuity – We’re in it for the long run • CEO tenure 4 generations of consistent leadership All company and large bank CEO tenure statistics source: The Motley Fool, Sept. 5, 2013. All Companies 8.1 years Largest US Banks 6.9 years 11 years
Slide 5: Consistency – Steady business practices
Consistency – Steady business practices #1 Consistently independent—no government assistance, no FDIC assisted deals Consistent actions to diversify and innovate our business Named as one of the best by Forbes for 6 th year** * Source FDIC reports ** Source: Forbes “Best Banks in America” list, 2010
Slide 6: Consistency – Independence
Consistency – Independence No need for government assistance – then or now. “If we were to liquidate this bank today, we could pay our depositors one hundred cents on the dollar and collect our entire Surplus and Capital Account of $700,000 and a large part of the Undivided Profits Account.” -R. Cro
Slide 7: Consistency – Stability Breeds Confidence 2014
Consistency – Stability Breeds Confidence 2014 American Customer Satisfaction Index (ACSI) “Score” on 100-Point Scale For ACSI: For UMB: Source for non-UMB ACSI scores: www.theacsi.org Source for UMB scores: Average of 3 questions, converted to 100-point scale Q1: How satisfied would you say you are
Slide 8: Consistency – Returning Value to Shareholders
Consistency – Returning Value to Shareholders Dividend increase = 114.1% Industry Median +17.1% increase Annual Dividends Per Share Declared Industry is defined as all publicly traded banks with dividends reported in 2004 and 2014. Source: SNL Financial More than half of banks decreased dividends in
Slide 9: Consistency – Unwavering Credit Standards
Consistency – Unwavering Credit Standards Peer group consists of Bank of Oklahoma, Boston Private, Commerce, Cullen/Frost, CoBiz, City Natl., First Midwest, Hancock, Old Natl., Prosperity, Signature, Silicon Valley, Trustmark, and Webster. Source for peer data: SNL Financial. 0.00% 0.50% 1.00% 1.50%
Slide 10: Consistency – Quality Underwriting
Net Charge-Offs (000’s) 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Consistency – Quality Underwriting Commercial Loans* 6,459 3,881 7,310 11,880 6,007 4,113 2,943 1,569 2,367 1,818 Credit Card 8,301 8,811 9,382 11,127 14,279 12,291 6,839 4,577 3,449 4,917 4,412 Other** 1,483 1,399 1,128
Slide 11: Consistency – Change is Constant
Consistency – Change is Constant Key Interest Rates Index Prices December 31, – December 31, 10-yr Treasury 6-mo LIBOR Fed Funds Rate $0 $70 $0 $65 S&P 500: +69.9% DJIA: +65.3%
Slide 12: Evolution – Then and Now
$18.93 $36.10 Evolution – Then and Now $1.23 Billion $2.59 Billion Book Value Market Capitalization Average Deposits – Full Year $5.0 billion $12.7 billion Share Price - UMBF $28.33 $56.89 Total Assets $7.8 billion $17.5 billion Average Loans – Full Year $2.8 billion $7.0 billion At December 31, exc
Slide 13: Building Strength & Balance
Building Strength & Balance
Slide 14: Evolution – Optimizing our Balance Sheet
Evolution – Optimizing our Balance Sheet Geographic Expansion & Penetration Changing Balance Sheet Asset Management: Growth & Diversification Asset Servicing: Adapting to Changes Healthcare Services: Evolving with the Industry
Slide 15: Slide 15
Slide 16: Evolution – Deposit Sources
33.9% 33.5% 4.5% Evolution – Deposit Sources 54.8% 24.9% 7.5% 9.8% 6.8% 6.2% 6.8% Consumer Banking Commercial & Small Business Inst. Banking & Investor Services Asset Servicing Healthcare Services Private Wealth Management Institutional Asset Management Small Business Banking 4.0% combined • Private
Slide 17: Evolution – Pushing our Boundaries
Evolution – Pushing our Boundaries Healthcare Services: Evolving with the Industry Geographic Expansion & Penetration Changing Balance Sheet Asset Management: Growth & Diversification Asset Servicing: Adapting to Changes
Slide 18: Geographic footprint 2004
2004 Fund Services Prairie Capital Healthcare Services – National Sales Scout Investments – National Sales Corporate Trust/Inst. Asset Mgmt. UMB Bank presence Loan Production Office Private Wealth/Personal Trust
Slide 19: Geographic footprint 2014
2014 Fund Services Prairie Capital Healthcare Services – National Sales Scout Investments – National Sales Corporate Trust/Inst. Asset Mgmt. UMB Bank presence Loan Production Office Private Wealth/Personal Trust
Slide 20: Evolution – Scale in Asset Management
Evolution – Scale in Asset Management Asset Management: Growth & Diversification Asset Servicing: Adapting to Changes Healthcare Services: Evolving with the Industry Changing Balance Sheet Geographic Expansion & Penetration
Slide 21: Evolution – Designed to Grow
Rolled out MidCap strategy – Oct 2006 Evolution – Designed to Grow 10-year CAGR 19.2% Scout became a sub of UMBFC – 2009 Acquired PCM, $2.2B – July 2010 Acquired Reams, $9.8B– Dec 2010 $5.0 $3.2 $3.7 $3.7 $3.6 $4.5 $5.5 $5.4 $6.4 $7.0 $7.6 $8.2B $10.1B $9.7B $11.0B $12.8B $27.3B $27.3B $32.4B $41.4B
Slide 22: Evolution – Asset Diversification
Evolution – Asset Diversification 21.8% 18.4% 62.7% Scout AUM Diversification $31.2 billion * Asset mix by strategy not available prior to 2009 due to system constraints Intl Equity Money Mkt Small Cap Equity Core Bond Balanced Equity Core Plus Bond Low Duration Bond Unconstrained Bond Mid Cap Equit
Slide 23: Evolution – Building Wealth for our Customers
Evolution – Building Wealth for our Customers PCM added 13 funds since acquisition for a total of 23 funds 2010 Acquired Prairie Capital -$2.2B in AUM 2009 Rolled out wrap accounts, began building brokerage assets $7.6 $5.0 Private Wealth Management Assets Under Management $5.0B $11.6B At December 3
Slide 24: Evolution – Adapting Asset Servicing Capabilities
Evolution – Adapting Asset Servicing Capabilities Asset Management: Growth & Diversification Asset Servicing: Adapting to Changes Healthcare Services: Evolving with the Industry Changing Balance Sheet Geographic Expansion & Penetration
Slide 25: Evolution – UMB Fund Services
Evolution – UMB Fund Services 10-year CAGR 30.5% 42.7% Revenue growth 16.6% 15.8% 17.0% 17.4% 28.2% 33.0% 36.4% Acquired JD Clark $18B AUA–2009 Assets Under Administration ($billions) $132.6 $179.3 $162.4 $206.4 $191.0 $156.0 $198.3 Fund Accounting & Admin. Alternative Custody Other (transfer agent/
Slide 26: Evolution – A Changing Healthcare Industry
Evolution – A Changing Healthcare Industry Asset Management: Growth & Diversification Asset Servicing: Adapting to Changes Healthcare Services: Evolving with the Industry Geographic Expansion & Penetration Changing Balance Sheet
Slide 27: Slide 27
Slide 28: Evolution – A Journey, Not a Destination
Evolution – A Journey, Not a Destination Healthcare Services: Evolving with the Industry Geographic Expansion & Penetration Changing Balance Sheet Asset Management: Growth & Diversification Asset Servicing: Adapting to Changes
Slide 29: Evolution – Diverse Revenue = Fewer Dependencies
Evolution – Diverse Revenue = Fewer Dependencies Revenue nearly doubled during the past decade. Total Revenue $862.6 million Total Revenue $447.6 million Interest on Loans Trust & Securities Processing Interest on Securities Deposit Service Charges Trading & Investment Banking Bankcard Fees Other “O
Slide 30: Growth
Growth
Slide 31: Growth – Net Income & EPS
Growth – Net Income & EPS UMB Net Income ‘04-’14 +181.6% Industry Median Net Income ‘04-’14 +33.3% UMB EPS* ‘04-’14 +167.7% Industry Median EPS* ‘04-’14 +17.0% $0.99 $1.30 $1.40 $1.77 $2.38 $2.20 $2.26 $2.64 $3.04 $3.20 $2.65 Industry is defined as all publicly traded banks with net income reported
Slide 32: Growth – A 10-year Picture
Growth – A 10-year Picture 95.4% 108.6% 58.5% 17.0% 62.3% 118.6% 58.7% 167.7% 150.8% 155.0% 69.2% 79.4% Net Interest Income Diluted Earnings Per Share UMBF (2004 – 2014) Total Revenue Industry Median (2004 – 2014) Noninterest Income Average Loans Average Total Deposits Industry is defined as all pub
Slide 33: Growth – Total Shareholder Return
+137.6% UMBF Compound Annual Growth Rate 9.0% Growth – Total Shareholder Return December 31, 2004 – December 31, 2014 Reinvesting all cash dividends +109.5% -6.5% $100 $238 $209 $94 UMBF S&P 500 SNL U.S. Bank
Slide 34: Agenda
Agenda Authenticity 2014 Performance & Highlights st Quarter 2015 Financials Questions & Answers
Slide 35: Pending Acquisition of Marquette Financial Companies
Pending Acquisition of Marquette Financial Companies Strategically Compelling Combination Compatible cultures Complementary balance sheet o Combining MFC’s higher-yielding loans with UMB’s low-cost funding Enhances UMB’s market share in Dallas and Phoenix markets Adds national specialty-lending busi
Slide 36: About Marquette
About Marquette $1.4 billion in assets, $970 million in net loans & leases, $959 million in deposits Original bank formed 36 years ago in Phoenix Privately-owned by the Pohlad family Community Banking Franchise Dallas 5 branches $323 million in net loans $376 million in deposits Phoenix 8 branches $
Slide 37: Agenda
Agenda 2014 Performance & Highlights 1st Quarter 2015 Financials Questions & Answers Authenticity
Slide 38: Built for the Decades
Built for the Decades UMBF Compound Annual Growth Rate 13.0% S&P 500 Compound Annual Growth Rate 12.0% +5,837% +8,069% UMBF Compound Annual Growth Rate 13.0% S&P 500 Compound Annual Growth Rate 12.0% Total Shareholder Return December 31, 1978 – December 31, 2014 $100 $8,169 $5,937 UMBF S&P 500
Slide 39: Agenda
Agenda 2014 Performance & Highlights st Quarter 2015 Financials Questions & Answers Authenticity
Slide 40: Strength in balance – today and tomorrow
Strength in balance – today and tomorrow. Annual Meeting of Shareholders – April 2015 UMB Financial