Umb Financial Corporation · NASDAQ:UMBF
Umb Financial — Q1 2019 Earnings Presentation
35 slides from Umb Financial's earnings presentation, Apr 23, 2019
Slide 1: UMB Financial First Quarter 2019
UMB Financial First Quarter 2019 April 23, 2019 Exhibit 99.3
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 – 1Q 2019
Earnings Summary – 1Q 2019 $ in thousands, except share and per share data; unaudited Non-GAAP adjustments include acquisition and divestiture expense, severance expense and the cumulative tax impact of these adjustments. See the non-GAAP reconciliations and additional information on these items on
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 See slides 34 and 35 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 13.2%
Slide 8: 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 Factoring Loans Asset-
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 March 31 of the indicated year) Percentages less
Slide 10: Loan Activity
Loan Activity $ in millions 1019 4Q'18 3018 2018 1018 End-of-Period Total Loans $12,549.7 $12,1782 $11,964.7 $116316 $11,4588 Gross Loan Production 930.4 7094 732.9 6444 529.9 Revolving Balance Changes (139.9) 1062 (18.8) (437) 1147 Net Charge-offs (12.3) (457) (27) (90) (10.3) Payoffs (194.2) (1494
Slide 11: High Quality Investment Portfolio
High Quality Investment Portfolio Securities Held to Maturity $1.1 billion at March 31, 2019 Securities Available for Sale $6.9 billion at March 31, 2019 Governmental Other Higher Education Healthcare Utility Social Service Industrial Cultural Civic K-12 Education NFP - Other Average Balance: $6.7 b
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 March 31, 2019 Variable Rate Loans: $8.0 billion
Slide 13: Diverse Sources of Deposits
Diverse Sources of Deposits (Average Deposits for the three months ended March 31 of the indicated year) Deposit Composition Personal Banking - Consumer Commercial Institutional Banking Personal Banking - Private Wealth Institutional Banking - Asset Servicing Healthcare Personal Banking - Small Busi
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. See next page for detail.
Slide 17: Commercial Net Charge-Offs
Commercial Net Charge-Offs 4Q18 Net Charge-offs / NCO Rate [iNet Charge- te (Recoveries) Average Balance (annualized) [| (Recoveries) Average Balance (annualized) al (8 in thousands) Cal i Asset-based lending 201 7 02: “) Factoring 48,139 300,265 10,995 Commercial Credit Card 220 178,772 0.49 (2) 19
Slide 18: Loan Classification Trends
Loan Classification Trends % of total loans 0.0% 1.0% 2.0% 3.0%
Slide 19: AG AGS as
AG AGS as Oya y iis 2) . ZF _ —AGIV
Slide 20: Noninterest Income – 1Q 2019
Noninterest Income – 1Q 2019 Noninterest income increased $12.4MM, or 13.0%, compared to 4Q’18, primarily driven by: Increases of $9.4MM in company-owned life insurance income driven by higher equity markets; $2.0MM in additional derivative income related to customer back-to-back swaps; Increased in
Slide 21: Noninterest Income Composition – 1Q 2019
Bankcard Fees Noninterest Income Composition – 1Q 2019 Service Charges on Deposit Accounts Trust & Securities Processing Insurance Fees & Commissions Other Brokerage Fees Trading & Investment Banking Trust & Securities Processing Composition: ($ in millions) Gains on Sales of Securities Source of In
Slide 22: Noninterest Expense – 1Q 2019
Noninterest Expense – 1Q 2019 Operating noninterest expense, which excludes the impact of acquisition and divestiture expense and severance expense, was $190.0 million for the first quarter of 2019, an increase of $8.4 million, or 4.6 percent, compared to the linked quarter, and an increase of $16.1
Slide 23: Segment Updates
Segment Updates
Slide 24: Commercial Banking
Commercial Banking Commercial Banking Loans Average $ in billions Commercial Banking Deposits Average $ in billions Demand Deposits Interest-Bearing Deposits
Slide 25: 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) Investment CRE Owner Occ. CRE Construction Farmland Multi-Family CRE Residential Construction (1) Percentages less than 5% have been omitted.
Slide 26: Institutional Banking
Institutional Banking Institutional Banking Deposits Average $ in billions Demand Deposits Interest-Bearing Deposits
Slide 27: 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 28: Personal Banking
Personal Banking Personal Banking Deposits Average $ in billions Personal Banking Loans Average $ in billions Consumer & Small Business Private Banking
Slide 29: Personal Banking Update
Home Equity Lines of Credit $ in billions Assets Under Management $ in billions Personal Banking UPDATE
Slide 30: Healthcare Services
Healthcare Services Healthcare Deposits & Assets End-of-period balances; $ in billions 2015 2016 2017 2018 2019 HSA deposits as % of total UMB deposits 7.8% 9.7% 11.4% 12.5% 13.7% HSA Deposits HSA Investment Assets
Slide 31: 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 32: Healthcare Services – Growth & Potential
Healthcare Services – Growth & Potential Industry information source: Devenir Research Year-End 2018 HSA Market Statistics & Trends report dated February 27, 2019. Rankings and growth rates as of December 31, 2018. HCS represents a unique asset as one of the top 5 leaders in a high growth, niche mar
Slide 33: 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 34: 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 35: 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