Umb Financial Corporation · NASDAQ:UMBF
Umb Financial — Q1 2021 Earnings Presentation
47 slides from Umb Financial's earnings presentation, Apr 27, 2021
Slide 1: 1st Quarter 2021 Update
1st Quarter 2021 Update UMB Financial Corporation April 27, 2021 Exhibit 99.3
Slide 2: Presentation Index
Presentation Index 2 Corporate Overview Opportunity – Our Investment Thesis 1st Quarter 2021 Results Line of Business Updates Appendix 3 7 16 30 40 Board of Directors Forward-Looking Statements Non-GAAP Reconciliations Please refer to the Forward-Looking Statements on page 42 for important disclosur
Slide 3: Corporate Overview
Corporate Overview 3 Highlights Corporate Trust / Investment Banking Division Fund Services Asset-based lending Accounts receivable financing Healthcare Services Private Wealth Management / Personal Trust 91 banking centers 232 ATMs UMB Bank Presence Twin Cities - MN Salt Lake City - UT UMB Financia
Slide 4: Beyond Financials – Our Culture
Beyond Financials – Our Culture 4 A company built to withstand the test of time. Customers First We do the unparalleled to create an environment that consistently exceeds the expectations of our customers. Integrity & Trust We demonstrate our uncompromising honesty and integrity to earn the trust of
Slide 5: Corporate Citizenship – Our Commitment
Corporate Citizenship – Our Commitment Associate volunteerism and corporate philanthropy help build strong community partnerships. 1,000+ participants in our workplace giving campaign supporting qualified nonprofits UMB’s Matching Gift Program utilization increased 380% from 2019 to 2020 $2.6mm+ in
Slide 6: Business Model – Our Diverse Foundation
Business Model – Our Diverse Foundation (1) Excludes $1.3B in average PPP balances and $362mm in average credit card balances. (2) Includes consumer loans plus residential real estate loans to retail and private banking clients. Balances at or for quarter ended 03/31/21. Commercial & Personal Bankin
Slide 7: Our Investment Thesis
Our Investment Thesis st. Louls, MO
Slide 8: Investment Thesis – Our Opportunity
Investment Thesis – Our Opportunity 8 Track record of relative outperformance in loan growth – opportunities remain Underpenetrated across our geographic footprint, focused on market share gains Underpenetrated vertically on an asset class basis, built out specialized teams Runway for Growth Attract
Slide 9: Balance Sheet Growth – Across All Business Cycles
Balance Sheet Growth – Across All Business Cycles 9 Average Loans Average Deposits Average annual balances in billions. Excludes PPP balances for 2020. (2) Source: S&P Global. 1.71% 0.34% 1.01% 0.25% Annual Loan Growth Annual Deposit Growth 13% 14% 9% 7% 5% 2% 6% 10% 10% 18% 12% 21% 19% 9% 7% 10% 3%
Slide 10: Differentiated Revenue Profile – Multiple Sources of Growth
Differentiated Revenue Profile – Multiple Sources of Growth 10 Net Interest Income Fee Income Provides Diversity 15 Year CAGR 9.5% Dollars in millions. Note: Fee income prior to 2017 contains income from discontinued operations. (1) Source: S&P Global. 30% 28% 57% 43% $440.2 $1,291.4 $472.2 $613.2 $
Slide 11: Capital & Liquidity – Supports Growth Outlook
Capital & Liquidity – Supports Growth Outlook 11 Cash & Securities / Assets Loans / Deposits Tier 1 Capital Ratio Tangible Common Equity / Assets (1) Source: S&P Global. (2) Non-GAAP measure. See reconciliations on slide 43. (3) As defined by S&P Global; “Cash, cash equiv. & investment securities/as
Slide 12: History of Strong, Resilient Credit
History of Strong, Resilient Credit – Through All Economic Environments 12 Net Charge-Offs / Average Loans Nonperforming Loans / Loans (1) UMB’s traditional peer group (15 banks); Source: S&P Global. (3) All FDIC-insured institutions; Source: FDIC Annual Statistics. 0.49% 0.25% 0.16% 0.74% 0.36% 0.1
Slide 13: Risk-Adjusted Returns – Rowing Close to Shore
Risk-Adjusted Returns – Rowing Close to Shore 13 Source: S&P Global. Risk-Weighted Assets / Assets Return on Risk-Weighted Assets
Slide 14: Outperformance – Building Long-Term Value
Outperformance – Building Long-Term Value 14 15-Year Compounded Annual Growth Rates 2005 – 2020 *KBW Nasdaq Regional Bank Index (50 banks); **UMB traditional peer group (15 banks); ***All publicly-traded banks with data reported for both 2005 and 2020. Source: S&P Global. (1) Non-GAAP measure. See r
Slide 15: Dividend Trends – Sustained Growth
Dividend Trends – Sustained Growth 15 Dividends adjusted for 2-for-1 stock split in 2006. Annual Dividends Declared (1) Total +228.9% 2020 = $1.25 +3.3% Year-over-year
Slide 16: 1st Quarter 2021 Financial Review
1st Quarter 2021 Financial Review
Slide 17: 1Q 2021 Results At-A-Glance
1Q 2021 Results At-A-Glance 17 1Q ’20 4Q ’20 1Q ’21 Linked-Quarter Performance Drivers Dollars in millions, except per share amounts. (1) Non-GAAP measure. See reconciliations on slide 43.
Slide 18: 1Q 2021 Earnings Highlights
Pre-Tax, Pre-Provision (“PTPP”) Income (1) 1Q 2021 Earnings Highlights 18 (1) Non-GAAP measure. See reconciliations on slide 43. (2) Net gains/losses related to mark-to-market valuations on investment in TTCF stock. $196.1 $102.1 Net Income $118.2 $87.3 $83.7 $90.2 $99.4 $156.3 $92.6 $-3.4 $60.5 $73
Slide 19: Revenue Trends
Revenue Trends 19 Dollars in millions.
Slide 20: Net Interest Income
Net Interest Income 20 Drivers of NIM Change Liquidity Trends Impact NIM EA % IBL % COF % $194.1 $173.9 $178.2 $184.4 $194.7 $171.3 $175.7 $180.8 $180.7 Dollars in millions.
Slide 21: Noninterest Income
Noninterest Income 21 Current Quarter Highlights Composition / Changes in Inv. Securities Gains (Losses) and Trust & Securities Processing Dollars in millions. (1) Source: S&P Global. Noninterest income decreased $119.4mm, or 52.3%, vs. 4Q’20. $16.1mm mark-to-market loss on investment in TTCF vs. a
Slide 22: Noninterest Expense
Noninterest Expense 22 Current Quarter Highlights Dollars in millions. Noninterest expense decreased $25.9mm, or 11.4%, vs. 4Q’20. Other expense decreased $16.8mm related to various operational and other losses incurred in the prior period; Decrease of $4.4mm in legal and consulting expense due to t
Slide 23: Diversified Loan Portfolio
$13,617 $15,098 $13,897 $14,233 $14,625 $15,732 $16,041 $16,246 Diversified Loan Portfolio 23 Average balances in millions. Loans by Region Kansas City 39% Colorado 16% Arizona 9% St. Louis 12% Greater MO 6% KS - 3% Texas 10% NE - 2% OK - 2% MN - 1% $14,933
Slide 24: Quarterly Loan Activity
Quarterly Loan Activity Gross Loan Production ex. PPP Revolving Balance Changes Net Charge-offs Payotts Paydowns Net Loan Growth Total Loans ex. PPP PPP Balances End-of-Period Total Loans Paydowns/Payoffs as 2 % of Loans ex. PPP 3206 a (188) (2022) 5180 19.9807 13.0407 (383.8) 65) (2820) (108.1) (12
Slide 25: Impacted Sectors & Deferral Trends
Note: We removed Oil & Gas, with 3/31/21 balances of $489mm, and Student Housing CRE, with 03/31/21 balances of $151mm, from the sensitive industries list based on borrower performance and improving industry metrics. PPP loans are excluded from the denominator when calculating percentages of total l
Slide 26: Strong Asset Quality
Strong Asset Quality 26 Delinquencies Allowance for Credit Losses Dollars in millions. (1) Delinquencies represent accruing loans > 30 days past due. (2) Total loans include PPP balances beginning in 2Q 2020. Net Loan Charge-Offs Nonperforming Loans Allowance for Credit Losses on Loans ACL / Total L
Slide 27: Detailed Net Charge-Off History
27 Detailed Net Charge-Off History
Slide 28: High-Quality Investment Portfolio
$10,391 $8,633 $9,028 $9,658 $9,904 $8,573 $8,858 $9,368 $7,524 $7,928 Available-for-sale Portfolio High-Quality Investment Portfolio 28 (1) Includes purchases made for roll-off and overbuy; net of purchases related to sales/trades. Total Portfolio Average Yield: 2.23% Duration: 72 months Portfolio
Slide 29: Diversified Deposit Mix
Diversified Deposit Mix 29 $26,826 $20,826 $22,781 $24,127 $24,965 Deposits by Line of Business Commercial Personal Institutional Regional Banking 37% Consumer & Private Wealth 25% Corp. Trust & Inv. Banking 11% Healthcare Services 10% Asset Servicing 7% Specialty Banking 2% Investor Solutions 8% 31
Slide 30: Line of Business Updates
Line of Business Updates
Slide 31: Commercial Banking – C&I Lending
Commercial Banking – C&I Lending 31 Commercial & Industrial Statistics (1) C&I Industry Diversification (2) Average loan size: $4.2 million Considerations Internal limits on loan size and projects per sponsor Concentration guidelines for all lending verticals, monitored for changing conditions Oil &
Slide 32: Commercial Banking – Commercial Real Estate
Commercial Banking – Commercial Real Estate 32 Commercial Real Estate Statistics Investment CRE / Construction Portfolio (1) Total Investment CRE Portfolio Average Loan-to-value: 62% Recourse: 88% Regulatory Concentrations Total non-farmland CRE / Total RBC: 146% Construction & Development Loans / T
Slide 33: Commercial Banking – Capital Finance
Commercial Banking – Capital Finance 33 SBIC fund - UMB Capital Corporation is a small business investment company that provides financing solutions via loans, equity and debt securities Swaps and derivatives - UMB Capital Finance will build customized instruments to help manage interest rate risk a
Slide 34: Personal Banking – Consumer
Personal Banking – Consumer 34 (1) Includes residential real estate and other consumer loans for retail and private banking customers. Metrics at or for the quarter ended March 31, 2021. $ millions Mobile Deposit Use 17% Digital Sales 20% 22% of non-mortgage loan applications of new retail deposit a
Slide 35: Personal Banking – Private Wealth Management
Personal Banking – Private Wealth Management 35 Includes AUM and AUA. (2) American Customer Satisfaction Index “Score.” Source: Market Strategies International. (3) Source: 2020 Forrester Net Promoter Benchmarks Study Personal Trust 29% Investment Advisory 22% Non-Managed AUA 27% IRAs 5% Brokerage 4
Slide 36: Institutional Banking – Fund Services & Institutional Custody
Institutional Banking – Fund Services & Institutional Custody 36 Assets Under Administration +37% YoY (1) Fund Intelligence ‘19-’20 Awards. (2) Hedgeweek U.S. Awards ‘20 & Private Equity Wire U.S. Awards ‘20. (3) 2020 Mutual Fund Service Guide. (4) Private Equity Wire U.S. Awards ’19. Best Interval
Slide 37: Institutional Banking – Corp/Specialty Trust & Capital Markets
Institutional Banking – Corp/Specialty Trust & Capital Markets 37 (1) Ranked by number of issues; Thomson Reuters municipal rankings, December 2020. (2) Bloomberg; ranking for 2020. Corporate Trust & Escrow Services Provides bond trustee, agency, escrow and custodial services to municipal and corpor
Slide 38: Institutional Banking – Investor Solutions & Healthcare Services
FDIC Sweep Assets $69B Institutional Banking – Investor Solutions & Healthcare Services 38 (1) InvestmentNews 2019. (2) Financial Planning June 2020. (3) Ranked by number of accounts; Devenir Research Year-end 2020 Market Statistics & Trends Report. Investor Solutions Provides large-scale banking se
Slide 39: Payments – Credit & Debit Card Products
Payments – Credit & Debit Card Products 39 $3,550 $3,362 $2,578 $3,122 $3,315 Dollars in millions. (1) Rank in commercial, consumer and small business card purchase volume among the top 50 2020 U.S. issuers. Source: Nilson Report, December 2020 Card Purchase Volume & Interchange Trends vs. 1Q ‘20 +5
Slide 40: Appendix
Appendix Dallas, TX
Slide 41: Leadership – Our Board of Directors
Leadership – Our Board of Directors 41 AC = Audit Committee; CC = Compensation Committee; GC = Governance Committee RC = Risk Committee
Slide 42: Forward-Looking Statements
Forward-Looking Statements 42 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 strictly to historical or
Slide 43: Non-GAAP Reconciliations
Non-GAAP Reconciliations 43 In this presentation, we provide information about pre-tax pre-provision income, pre-tax, pre-provision income on a fully tax equivalent basis (PTPP-FTE), pre-tax, pre-provision earnings per share – diluted (PTPP EPS), pre-tax, pre-provision FTE earnings per share – dilut
Slide 44: Non-GAAP Reconciliations Pre-Tax, Pre-Provision Income
Non-GAAP Reconciliations 44 Pre-Tax, Pre-Provision Income (unaudited, dollars in thousands except share and per share data)
Slide 45: Non-GAAP Reconciliations Pre-Tax, Pre-Provision Income Fully Tax-Equivalent
Non-GAAP Reconciliations 45 Pre-Tax, Pre-Provision Income on a Fully Tax-Equivalent Basis (unaudited, dollars in thousands except share and per share data)
Slide 46: Non-GAAP Reconciliations Tangible Book Value
Non-GAAP Reconciliations 46 Tangible Book Value (1) Share count for December 31, 2005, adjusted for Company’s 2-for-1 stock split on May 31, 2006. (unaudited, dollars in thousands except share and per share data)
Slide 47: Non-GAAP Reconciliations Tangible Common Equity Ratio
Non-GAAP Reconciliations 47 Tangible Common Equity Ratio (unaudited, dollars in thousands)