Umb Financial Corporation · NASDAQ:UMBF
Umb Financial — Q1 2015 Earnings Presentation
32 slides from Umb Financial's earnings presentation, Apr 28, 2015
Slide 1: Strength in Balance. First Quarter 2015
Strength in Balance. First Quarter 2015 April 28, 2015 Exhibit 99.3 UMB Financial
Slide 2: Performance Highlights
Performance Highlights
Slide 3: Earnings Summary – 1Q 2015
Earnings Summary – 1Q 2015 $ in thousands, except per-share data; unaudited 1Q'15 1Q'14 4Q'14 vs. 1Q'14 vs. 4Q'14 Net Interest Income 90,358 $ 85,445 $ 90,914 $ 5.7 (0.6) Noninterest Income 125,207 122,964 115,248 1.8 8.6 Pre-Provision Net Revenue 215,565 208,409 206,162 3.4 4.6 Noninterest Expense
Slide 4: Key Performance Metrics
Key Performance Metrics 1Q'15 4Q'14 3Q'14 2Q'14 1Q'14 ROAE 8.18% 6.47% 8.77% 8.77% 6.13% ROAA 0.81% 0.66% 0.90% 0.89% 0.58% Efficiency Ratio 75.67% 77.46% 72.25% 73.32% 79.67% Net Interest Margin 2.46% 2.52% 2.53% 2.53% 2.39% Noninterest Income % of revenue 58.1% 55.9% 59.1% 60.9% 59.0% Avg. Loan/De
Slide 5: Select Balance Sheet Items
Select Balance Sheet Items $ in thousands, average balances; unaudited vs. Mar '14 vs. Dec '14 Avg. Balance Avg. Balance Avg. Balance Assets Loans, net of unearned interest 7,470,101 $ 3.49 6,678,932 $ 3.58 7,320,930 $ 3.49 11.8 2.0 Total securities 7,153,018 1.94 7,035,642 $ 1.98 7,184,075 $ 1.91 1
Slide 6: Consistent Loan Growth
Consistent Loan Growth 4.74% 4.31% 3.82% 3.58% 3.49% Average Loans & Loan Yields Average Loans Average Loan Yield $4.6 $5.1 $5.8 $6.7 $7.5
Slide 7: Quality Credit Metrics
Quality Credit Metrics 0.23% 0.22% 0.23% 0.23% 0.09% 0.45% 0.39% 0.46% 0.37% 0.39% Net Charge-Offs $000’s Nonperforming Loans $000’s $3,737 $3,713 $3,985 $4,176 $1,661 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Net Charge-offs NCOs/Avg Loans $30,153 $27,175 $32,662 $27,382 $29,187 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 N
Slide 8: BEESE
BEESE
Slide 9: Slide 9
Slide 10: Deposit Growth
Deposit Growth 1Q 2015 Cost of Interest-Bearing Liabilities 0.16% Including DDA 0.09% 32.3% 38.7% 39.7% 39.3% 42.7% Deposits & Percent of Free Funds Average; $ billions $9.5 $11.6 $10.3 $13.1 $13.3 $0.0 $2.5 $5.0 $7.5 $10.0 $12.5 Interest Bearing Non-Interest Bearing
Slide 11: Balance Sheet – Strong Capital Position
Balance Sheet – Strong Capital Position Tier 1 Capital Ratio vs. Industry 1Q 2015 Average Equity ($ billions) Capital Ratio Trends Industry Median as of 4Q14; Source: SNL Financial * *1Q’15 ratios calculated under Basel III requirements 11.92 14.43 14.04 13.62 11.05 13.61 13.29 12.91 6.81 8.41 8.72
Slide 12: Noninterest Income Highlights – 1Q 2015
Noninterest Income Highlights – 1Q 2015 53.8% Bankcard Fees Trust & Securities Processing Revenue Trust & Securities Processing Composition : Deposit Service Charges Trust & Securities Processing Brokerage Fees ($ millions) Insurance Fees Source of income: 1Q'15 1Q'14 Institutional Investment Mgmt.
Slide 13: Noninterest Expense
Noninterest Expense 000's 1Q'15 4Q'14 3Q'14 2Q'14 1Q'14 Salaries and employee benefits 98,537 90,115 90,041 89,532 88,881 Occupancy, net 10,010 10,312 10,475 9,705 9,705 Equipment 14,172 14,618 13,408 12,920 12,663 Supplies, postage and telephone 4,325 5,403 4,817 5,554 4,637 Marketing and business
Slide 14: Prairie Capital Management Summary (unaudited) 1Q'15
Prairie Capital Management Summary (unaudited) 1Q'15 Select Components of Noninterest Income and Expense Related to PCM **Represents contingent consideration changes related to the settlement agreement for specific private equity funds. *Represents contingent consideration changes related to operati
Slide 15: Business Segment Updates
Business Segment Updates
Slide 16: Bank
Bank Net loans grew for the consecutive quarter, increasing by 11.0% year-over-year to $7.4 billion Private Banking average loans increased 29.9% to $443.6 million vs. 1Q’14 Trading and investment banking revenue increased by 41.6% vs. 1Q’14, driven by strong fixed-income bond sales and increased mu
Slide 17: Bank – Lending
44.0% 48.3% 53.3% 52.0% 51.3% Bank – Lending 5 yr CAGR 9.9% 2.1% 2.1% 2.0% 1.8% 1.7% 2.7% 1.6% 1.4% 2.7% 3.4% 27.7% 26.5% 24.0% 25.4% 25.9% 4.5% 3.9% 3.8% 4.4% 4.4% 10.3% 10.5% 9.4% 8.4% 8.4% 6.5% 6.1% 5.2% 4.4% 3.8% 2.2% 1.0% 0.9% 0.9% 1.1% 1Q'11 1Q'12 1Q'13 1Q'14 1Q'15 Diverse Loan Book (Actual Lo
Slide 18: Bank – Regional Lending
Bank – Regional Lending $2,340.3 $2,481.4 $2,874.1 $3,011.2 $3,353.6 High Growth Regions 1Q’15 vs. 1Q’14 $4.7B $5.1B $6.0B $6.8B $7.5B $111.9 $195.7 $95.6 $129.3 $275.7 $132.4 $181.7 $299.7 $214.4 $200.7 $153.1 $217.5 $70.2 Texas +118% Kansas +12% Arizona +41% Loans by Region (Actual Loan Balances a
Slide 19: Bank – Deposits
25.9% 30.5% 29.7% 33.2% 31.1% Bank – Deposits 5 yr CAGR 9.9% 33.0% 32.0% 26.5% 26.7% 24.5% 11.7% 7.6% 8.3% 8.1% 9.0% 4.6% 6.1% 8.1% 8.1% 7.6% 7.2% 6.5% 15.0% 10.9% 12.2% 8.7% 6.3% 6.2% 2.0% 1.7% 6.8% 5.2% 4.4% 3.8% 4.6% 4.1% 4.6% 3.8% 1Q'11 1Q'12 1Q'13 1Q'14 1Q'15 Diverse Sources of Deposits (Actual
Slide 20: Bank – Asset Mgmt. & Home Equity Lending
Bank – Asset Mgmt. & Home Equity Lending $5,366 $6,390 $7,044 $7,610 $7,751 $559 $608 $663 $755 $789 48.8% 48.5% 46.1% 46.0% 44.4% $7.6B $8.8B $10.2B $11.6B $11.7B $1.09B $1.18B $1.23B $1.40B $1.42B Home Equity Lines of Credit $ in millions Assets Under Management $ in millions $2,035 $2,219 $2,853
Slide 21: Institutional Investment Management
Institutional Investment Management Scout assets under management now stand at $30.6 billion Scout has launched five new mutual funds, three new strategies, and one UCITS in the past five years Highlights Institutional Investment Management Segment Results $ in 000s, unaudited % Change 3 mos Ended %
Slide 22: Institutional Investment Management
Institutional Investment Management $8.2 $10.4 $12.6 $7.8 $7.2 Total AUM $30.6B $19.7B $23.5B $31.2B $31.2B Equity Mutual Funds Equity Institutional & Other Fixed Income Institutional & Other Fixed Income Mutual Funds $0.6 $0.9 $3.2 $2.4 $2.3 $10.3 $11.4 $12.6 $18.1 $18.3 $0.6 $0.8 $2.8 $2.9 $2.8 1Q
Slide 23: Institutional Investment Management – AUM Drivers
Institutional Investment Management ($1,287.0) ($1,366.6) ($2,314.6) ($1,111.0) ($1,111.0) AUM Drivers $ in millions ($1,767.0) $230.7 Total Change ($millions) $30,627.3 $32,394.3 Total AUM ($millions) $996.1 $32,163.5 $550.7 $31,178.1 ($570.7) $30,607.4 1Q’15 4Q’14 3Q’14 2Q’14 1Q’14 ($331.0) $47.7
Slide 24: AUM by Strategy – As of March 31, 2015
AUM by Strategy – As of March 31, 2015 55.9% 37.1% 67% 33% 33.0% 27.0% Equity Strategies International Mid Cap International ADR Emerging Markets Global Small Cap Other: Fixed Income Strategies Core Plus Low Duration Long Duration Intermediate Core Unconstrained Unconstrained UCITS Real Return Equit
Slide 25: Payment Solutions
Payment Solutions Credit and debit card purchase volume grew 11.4% vs. 1Q’14 to $2.3 billion, driving an increase of $1.6 million in interchange revenue year-over-year HSA deposits and assets grew by 42.8% vs. 1Q’14 to $1.2 billion. HSA deposits have grown to 8.1% of total company deposits at March
Slide 26: Payment Solutions
Payment Solutions 18.1% 18.1% 17.0% 15.5% 15.1% $15.2 $15.3 $16.6 $16.7 $18.4 Total Card Purchase Volume & Interchange Revenue Commercial Credit Consumer Credit Consumer Debit Healthcare Inst. Banking & Investor Services Interchange ($millions) $2.3B $1.3B $1.6B $1.8B $2.1B 1.4% 1.1% 1.0% 1.5% 1.3%
Slide 27: Payment Solutions – Healthcare Services
Payment Solutions – Healthcare Services 0.36% 0.34% 0.36% 0.28% 0.28% Healthcare Purchase Volume Trends $millions * Interchange revenue from Healthcare cards divided by purchase volume on Healthcare cards 16.9% 23.4% 22.7% 32.5% 37.7% 41.0% 29.0% $512.2 $461.2 $393.8 $350.0 $682.2 $536.4 $448.0 $421
Slide 28: Payment Solutions – Healthcare Services
$298.4 $399.6 $595.0 $841.7 $1,061.0 Payment Solutions – Healthcare Services $24.9 $30.9 $47.4 $75.8 $92.5 1Q'15 HSA $ Deposits (in millions) HSA $ Assets (in millions) Healthcare Deposits and Assets $millions $323.3 $430.5 $642.4 $917.5 $1,153.5 Healthcare provided 8.1% of Total Avg. Deposits in 1Q
Slide 29: Asset Servicing
Asset Servicing Assets Under Administration $billions Assets in the IMST increased nearly 74% and now stand at $12.5 billion compared to $7.2 billion a year ago The number of funds serviced grew by 126 in the past 12 months, an increase of 12% UMB Fund Services was named “Best Fund Administrator 201
Slide 30: Asset Servicing
Asset Servicing 160 179 219 249 252 467 532 514 579 579 256 270 301 349 349 499 443 411 454 459 Fund Accounting & Administration Alternative Asset Servicing Custody Transfer Agency $35.9 $44.1 $63.0 $72.1 $72.0 1Q'15 Assets Under Administration # of Funds Serviced $24.7 $26.3 $27.9 $31.5 $35.8 1Q'15
Slide 31: Strengths We are Leveraging
Strengths We are Leveraging Diversified revenue Growing fee businesses Leadership Success building a smartly diversified financial services company Building scale through strategic acquisitions Professional management teams leading highly engaged workforce across the footprint
Slide 32: Strength in balance – today and tomorrow. First Quarter 2015
Strength in balance – today and tomorrow. First Quarter 2015 UMB Financial