Umb Financial Corporation · NASDAQ:UMBF
Umb Financial — Q3 2014 Earnings Presentation
29 slides from Umb Financial's earnings presentation, Oct 28, 2014
Slide 1: Quality endures. Third Quarter 2014
Quality endures. Third Quarter 2014 Exhibit 99.2 UMB Financial
Slide 2: Earnings Summary
Earnings Summary $ in thousands, except per-share data; unaudited 3Q14 3Q13 2Q14 vs. 3Q13 vs. 2Q14 Net Interest Income 87,526 $ 85,545 $ 86,170 $ 2.3 1.6 Noninterest Income 126,475 121,625 134,001 4.0 (5.6) Total Revenue 214,001 207,170 220,171 3.3 (2.8) Noninterest Expense 161,461 153,063 166,511 5
Slide 3: Performance Metrics
Performance Metrics 70.77% 73.64% 79.67% 73.32% 72.25% 2.61% 2.51% 2.39% 2.53% 2.53% 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Efficiency Ratio Net Interest Margin 10.84% 9.08% 6.13% 8.77% 8.77% 0.92% 0.89% 0.58% 0.89% 0.90% 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Return on Avg Equity Return on Avg Assets ROAE/ROAA Effic
Slide 4: Select Balance Sheet Items
Select Balance Sheet Items $ in thousands, average balances; unaudited vs. 3Q'13 vs. 2Q'14 Avg. Balance Avg. Balance Avg. Balance Assets Loans, net of unearned interest 6,996,363 $ 3.50 6,418,368 $ 3.65 6,897,840 $ 3.51 9.0 1.4 Total securities 6,992,618 1.92 6,985,343 1.99 6,940,448 1.97 0.1 0.8 To
Slide 5: Consistent Loan Growth
Consistent Loan Growth 5 Year CAGR 9.9% 4.92% 3.50% Average Net Loans & Loan Yields $4.6 $4.8 $5.3 $6.4 $7.0 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 6: Credit Quality Metrics
Credit Quality Metrics 0.20% 0.26% 0.23% 0.22% 0.23% 0.48% 0.47% 0.45% 0.39% 0.46% Net Charge-Offs $ thousands Nonperforming Loans $ thousands $3,209 $4,187 $3,737 $3,713 $3,985 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Net Charge-offs NCOs/Avg Loans $31,260 $30,706 $30,153 $27,175 $32,662 3Q'13 4Q'13 1Q'14 2Q'
Slide 7: Net Interest Income
Net Interest Income +2.3% Net Interest Income 3Q’14 vs. 3Q’13 • Increased loan balances 2.98% 2.91% 2.75% 2.82% 2.80% 2.64% 2.51% 2.56% 2.61% 2.51% 2.39% 2.53% 2.53% $79.1 $79.5 $79.1 $80.4 $80.4 $80.2 $79.5 $82.3 $85.5 $85.9 $85.4 $86.2 $87.5 $65.0 $70.0 $75.0 $80.0 $85.0 $90.0 3Q'11 4Q'11 1Q'12 2Q
Slide 8: Noninterest Income Highlights
58.6% Noninterest Income Highlights 5 Year CAGR 17.8% 17.1% 13.5% 3.0% 2.6% 2.5% 2.0% 0.7% 0.02% Bankcard Fees Trust & Securities Processing Composition : Equity Earnings/Alternatives Trading & Investment Banking Other Deposit Service Charges Trust & Securities Processing Brokerage Fees Gains on Sal
Slide 9: Noninterest Expense
Non-Int Expense 5yr CAGR 7.0% Noninterest Expense Salary 5yr CAGR 8.4% Non-Int Income 5yr CAGR 9.5% 0% 20% 40% 60% 80% 100% $40 $60 $80 $100 $120 $140 $160 $180 Salary/Benefit Expense Noninterest Income Total Noninterest Expense Coverage Ratio* Noninterest expense increased 5.5% to $161.5 million vs
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Slide 12: Deposit Growth
Deposit Growth 3Q’14 Cost of Funds 0.15% Including DDA 0.09% 38.5% 41.6% 43.2% 42.9% Deposits & % of Free Funds $ billions $9.4 $13.0 $10.6 $12.8 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 Interest Bearing Non-Interest Bearing
Slide 13: Strong Capital Position
Strong Capital Position 5 yr CAGR 9.8% 12.45 12.20 11.92 14.43 14.51 11.30 11.20 11.05 13.61 13.72 6.56 6.71 6.81 8.41 8.90 3Q14 Total Risk-Based Capital Tier 1 Capital Tier 1 Leverage Tier 1 Capital Ratio vs. Industry 3Q 2014 Average Equity ($ billions) Capital Ratio Trends Industry Median as of 2Q
Slide 14: Business Segment Updates
Business Segment Updates
Slide 15: Bank
32.7% 37.1% 40.4% 39.6% 40.5% Bank 5 yr CAGR 9.9% 5 yr CAGR 10.9% $ 8.3 $ 9.5 $ 10.4 $ 11.8 $12.5 3Q'10 3Q'11 3Q'12 3Q'13 3Q'14 Interest Bearing Non-Interest Bearing $4.6 $4.8 $5.3 $6.4 $7.0 3Q'10 3Q'11 3Q'12 3Q'13 3Q'14 Average Net Loans $ in billions Average Deposits $ in billions Net loans grew f
Slide 16: Bank - Lending
Bank - Lending 46.6% 53.8% 28.2% 25.4% Diverse Loan Book (Actual Loan Balances at September 30) 10.7% $5.4B $7.1B 8.9% 8.9% $6.5B 6.1% 4.0% 4.5% 1.6% $4.8B 1.3% 3Q'11 3Q'12 3Q'13 3Q'14 Commercial & Industrial* Commercial Real Estate Home Equity Credit Card Consumer Real Estate Consumer - Other *incl
Slide 17: Bank - Deposits
Bank - Deposits 31.4% 32.5% 35.3% 25.1% Diverse Sources of Deposits (Average Deposits for Three Months Ended September 30) 6.1% 7 .8% 7.3% 6.9% 8.3% 6.3% 3.1% 6.5% 4.6% 3.4% 9.8% 4.8% $9.5B $10.4B $11.8B $12.5B 0.5% 0.3% 3Q'11 3Q'12 3Q'13 3Q'14 Commercial/Treasury Mgmt Consumer Banking Asset Servici
Slide 18: Bank – Commercial Banking
Bank – Commercial Banking 5 yr CAGR 11.1% 48.0% 45.9% 44.1% 42.3% 42.2% High Growth Regions 3Q’14 vs. 3Q’13 Commercial Loans By Region Loan Balances $ in billions, Average C&I and CRE Loan Balances for Three Months Ended September 30 0% 50% 100% 3Q'10 3Q'11 3Q'12 3Q'13 3Q'14 KC CO STL Greater MO KS
Slide 19: Bank – Private Wealth Mgmt. & Consumer Banking
Bank – Private Wealth Mgmt. & Consumer Banking $470 $524 $604 $652 $733 50.1% 49.4% 48.3% 46.8% 46.2% $5,366 $6,390 $7,044 $7,376 $7,565 $7,562 $473 $512 $564 $573 $629 3Q '10 3Q '11 3Q '12 3Q '13 3Q '14 Balances Unused Commitments Utilization Home Equity Lines of Credit $ in millions $0.94B $1.04B
Slide 20: Institutional Investment Management
Institutional Investment Management $29.3 $31.2 $32.2 $32.4 $30.6 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Total Scout Assets Under Management $ in billions AUM increased 4.5% to $30.6 billion compared to 3Q’13 Extended employment agreements with key principals of Reams and look forward to continued growth wit
Slide 21: $3,200 ($18.6) $263.8 (9545.6) (S1,366.6) 2014 ($1,287.0) $4554 oe $153.4 S477 1014 ($331.0) $248.8
$3,200 ($18.6) $263.8 304 (9545.6) (S1,366.6) 2014 ($1,287.0) $4554 oe $153.4 S477 1014 ($331.0) $248.8 4013 (8120.4) $829.9 $86.8 sae aet se - $2,200 $1,300 -s400 $500 $1,400 $2,300 ‘Equity Flows iio erika itil econ ek
Slide 22: Institutional Investment Management
Institutional Investment Management Total AUM $30.6B $19.9B $19.7B $23.5B $31.2B Equity Mutual Funds Equity Institutional & Other Money Market Fixed Income Institutional & Other Fixed Income Mutual Funds
Slide 23: AUM by Strategy – As of 3Q’14
35.9% 25.2% AUM by Strategy – As of 3Q’14 59% 41% 60.6% 33.9% 18.1% 11.1% 5.1% 4.6% 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 Unconstrained UCITS Real
Slide 24: Payment Solutions
$14.3 $16.3 $15.4 $16.4 Payment Solutions $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 $2.18 $2.11 $18.6 Purchase Volume ($ billions) Interchange ($ millions) Total Card Purchase Volume & Interchange Revenue Durbin effective Credit and debit card purchase
Slide 25: Payment Solutions
Payment Solutions 0.44% 0.38% 0.39% 0.34% 0.31% Healthcare Purchase Volume Trends $millions * Interchange revenue from Healthcare cards divided by purchase volume on Healthcare cards 6.8% 8.9% 16.9% 23.4% 22.7% 32.5% 37.7% $261.5 $252.3 $512.2 $461.2 $393.8 $350.0 $682.2 $536.4 $448.0 $421.4 $881.3
Slide 26: Payment Solutions
$84.2 $125.1 $169.8 $255.2 $298.5 $399.6 $595.0 $824.8 Payment Solutions $16.7 $15.4 $20.9 $24.7 $24.9 $30.9 $47.4 $67.8 3Q '14 HSA Deposits HSA Assets Healthcare Deposits and Assets $millions $36.6M $65.8M $100.8M $140.5M $190.7M $279.9M $323.3M $430.5M $642.4M $892.6M Healthcare provided 6.5% of T
Slide 27: Asset Servicing
Asset Servicing Assets Under Administration $billions Investment Managers Series Trust assets increased 6.6% in 3Q’14 and >50% YTD 46 new fund accounting & administration clients have been added during the past 12 months, increasing AUA in that business by 22.6% 3 Quarter 2014 Highlights rd Asset Se
Slide 28: Asset Servicing
Asset Servicing 160 179 181 182 196 219 229 238 242 467 532 543 549 551 514 512 592 583 256 270 275 284 303 301 313 318 327 499 443 432 400 416 411 432 438 443 Fund Accounting & Administration Alternative Asset Servicing Custody Transfer Agency $35.9 $44.1 $48.4 $52.1 $58.2 $63.0 $66.8 $71.4 $71.4 1
Slide 29: Building a company for the next years
Building a company for the next 100 years. Third Quarter 2014 UMB Financial