Slide 1: 3rd Quarter 2023 Update
3 Quarter 2023 rd Update Kansas City, MO October 24, 2023
Slide 2: Presentation Index
Presentation Index Corporate Overview 3 Opportunity – Our Investment Thesis 8 3rd Quarter 2023 Results 17 Line of Business Updates 33 Appendix 44 Board of Directors Forward-Looking Statements Non-GAAP Reconciliations Peer Group Please refer to the Forward-Looking Statements on slide 46 for important
Slide 3: Corporate Overview
Corporate Overview Highlights Founded 1913 Ticker UMBF - Nasdaq Market Cap $3.0 B Total Assets $41.5 B Gross Loans $22.9 B Total Deposits $33.4 B Private Wealth Customer Assets (1) $15.5 B Institutional Assets Under Administration (AUA) (2) $431.0 B Common Equity Tier 1 Capital Ratio 10.77% UMB Fina
Slide 4: Business Model: Our Diverse Foundation
Business Model Our Diverse Foundation Commercial & Personal Banking Services 3Q’23 Revenue: $226.0 million. 3Q’23 Average Deposits: $18.1 billion Commercial Consumer Private Wealth Average loans: $19.2B (1) Average loans: $3.1B (1) (2) AUM = $11.7B Average deposits: $12.0B Average deposits: $6.1B AU
Slide 5: Beyond Financials: Our Culture
Beyond Financials Our Culture Our Vision Our Values Customers First the We do the unparalleled to create an environment that unparalleled consistently exceeds the expectations of our customers. customer experience Integrity & Trust We demonstrate our uncompromising honesty and integrity to earn the
Slide 6: Beyond Financials: Our Culture
Beyond Financials Our Culture Creating an unparalleled customer experience requires a culture where our people feel part of something more, something bigger. We foster this experience through our policies, our business decisions and our expectations of each associate. MORE MORE MORE HEART TRUST OPPO
Slide 7: Our Commitment to Corporate Citizenship
Beyond Financials Our Commitment to Corporate Citizenship Inclusion & Diversity Strong Corporate Governance Effective governance practices preserve the confidence and We want our company to be as diverse as the world we live in. trust of our stakeholders. ▪ As an early CEO Action for Diversity and I
Slide 8: Our Investment Thesis
Our Investment Thesis Salt Lake City, UT
Slide 9: Investment Thesis: Our Opportunity
Investment Thesis Our Opportunity Runway for Growth Solid capital levels and ample liquidity sources ▪ Strong regulatory capital ratios ▪ Access to multiple contingent funding sources Diverse deposit base across multiple lines of business, customer segments and geographies ▪ No one commercial sector
Slide 10: Capital & Liquidity Supports Growth Outlook
Capital & Liquidity Supports Growth Outlook Tier 1 Capital Ratio Equity / Assets Tangible Equity / Tangible Assets (2) UMBF Peer Median (1) UMBF Equity / Assets UMBF TCE / Tang. Assets (2) Peer Median TCE / Tang. Assets (1) (2) Cash & Securities / Assets (3) Average Loans / Average Deposits UMBF Pee
Slide 11: Balance Sheet Growth Across All Business Cycles
Balance Sheet Growth Across All Business Cycles Average Deposits 15 Year 2.89% CAGR 12.0% 2.10% 0.53% 0.32% Average Deposits Average Total Deposit Cost Peer Median Deposit Cost (1) Annual Deposit Growth 4% 14% 16% 11% 14% 10% 13% 6% 11% 9% 4% 7% 14% 20% 25% 8% Average Loans 15 Year CAGR 11.0% Annual
Slide 12: Differentiated Revenue Profile
Differentiated Revenue Profile Multiple Sources of Growth Net Interest Income $913.8 15 Year CAGR $ 815.5 $731.2 9.5% $670.9 $610.4 $558.9 $495.3 $412.1 $317.0 $320.1 $333.3 $350.1 $275.1 $303.0 $310.6 $232.7 Annual NII 7% 18% 10% 3% 2% 1% 4% 5% 18% 20% 13% 9% 10% 9% 12% 12% Growth Fee Income Provid
Slide 13: Resilient Credit Metrics Through All Economic Environments
Resilient Credit Metrics Through All Economic Environments Net Charge-Offs / Average Loans 15 Year Average 0.30% 0.21% UMBF Peer Median (1) Industry (2) Nonperforming Loans / Loans 15 Year Average 0.44% 0.09% UMBF Peer Median (1) Industry (2) (1) UMB traditional peers (15 banks), as of latest availa
Slide 14: Risk-Adjusted Returns
Risk-Adjusted Returns Rowing Close to Shore Risk-Weighted Assets / Assets UMBF Peer Median (1) Return on Risk-Weighted Assets UMBF Peer Median (1) (1) UMB traditional peers (15 banks), data as of latest available annual period. Source: S&P Global Market Intelligence. 14
Slide 15: Dividend Trends: Sustained Growth
Dividend Trends Sustained Growth Annual Dividends Declared (1) 2023 = $1.53 +2.7% vs. 2022 +282.5% 2003 - 2023 (1) Dividends adjusted for 2-for-1 stock split in 2006. 15
Slide 16: Outperformance Building Long-Term Value
Outperformance Building Long-Term Value 15-Year Compounded Annual Growth Rates 2007 – 2022 Diluted Earnings Per Share Tangible Book Value Per Share (1) UMBF KRX* Peer Median** Industry*** *KBW Nasdaq Regional Bank Index (median of 50 banks); **UMB’s traditional peers (median of 15 banks); ***Median
Slide 17: 3rd Quarter 2023 Financial Review
3rd Quarter 2023 Financial Review St. Louis, MO
Slide 18: 3Q 2023 Results At-A-Glance
3Q 2023 Results At-A-Glance $ millions, except per share amounts. 3Q ’22 2Q ’23 3Q ’23 Linked-Quarter Variance & Commentary Average Loans 19,284.3 22,191.6 22,751.5 56% of LQ growth from construction draws; 29% from C&I LQ annualized growth % 21.1% 17.3% 10.1% End-of-Period Loans 19,883.6 22,483.5 2
Slide 19: 3Q 2023 Earnings Highlights
3Q 2023 Earnings Highlights Net Income Operating PTPP Income (1) $135.4 $131.2 $134.1 $127.9 $126.6 $100.2 $96.6 $92.4 $88.0 $90.1 Operating PTPP Income – gains/losses on inv. securities (2) Net Income Diluted EPS Operating PTPP Income, ex. gains/losses on inv. securities Dollars in millions, except
Slide 20: Revenue Trends
Revenue Trends 3Q ’22 4Q ’22 1Q ’23 2Q ’23 3Q ’23 Linked-Qtr. Variance $∆ %∆ Interest Income 300.3 366.8 408.7 461.4 472.0 10.6 2.3 Interest Expense 66.9 121.6 167.1 235.8 249.7 13.9 5.9 Net Interest Income $ 233.5 $ 245.2 $ 241.7 $ 225.6 $ 222.3 $ (3.3) (1.5%) Trust & securities processing 59.6 59.
Slide 21: Net Interest Income
Net Interest Income Asset Yield and Liability Cost Trends $245.2 $241.7 $233.5 $225.6 $222.3 EA % IBL % COF % Liquidity Trends $ millions Pre- $3.0B pandemic $2.1B $ billions $2.0B $1.8B $1.8B $1.5B 8.4% 4.3% 5.1% 5.4% 7.8% 5.0% Net Interest Income NIM Spread Int-bearing due from banks Fed funds & r
Slide 22: Noninterest Income
Noninterest Income Current Quarter Drivers $130.2 $138.1 Noninterest income decreased $4.8mm or 3.5%, vs. 2Q’23. Primary drivers: $133.3 $128.7 ▪ A decrease of $8.4mm in other income related to the $4mm gain on the sale of $125.5 assets in 2Q’23, along with decreases of $3.5mm in COLI income and $0.
Slide 23: Noninterest Expense
Noninterest Expense Linked-Qtr. Variance $ in millions 3Q ’22 4Q ’22 1Q ’23 2Q ’23 3Q ’23 $∆ %∆ Severance & acquisition expenses 0.3 0.4 0.5 4.9 2.4 (2.5) (51.8) Salary & Benefits, ex. severance expense 136.2 135.6 142.0 138.4 131.0 (7.4) (5.3) Occupancy 12.2 12.4 12.2 11.7 12.3 0.5 4.6 Equipment 18
Slide 24: Diversified Loan Portfolio
Diversified Loan Portfolio 3Q ’22 2Q ’23 3Q ’23 Linked-Qtr. $∆ Variance %∆ $ 22,751 CRE/Construction 6,892 8,178 8,545 367 4.5 $ 22,192 $21,272 Commercial & Industrial 8,677 9,980 10,139 159 1.6 $ 20,295 Residential Real Estate 2,575 2,834 2,923 89 3.1 $ 19,284 Consumer 142 140 139 - (0.2) Credit Ca
Slide 25: Quarterly Loan Activity
Quarterly Loan Activity 3Q ’22 4Q ’22 1Q ’23 2Q ’23 3Q ’23 Gross Loan Production $1,269.0 $1,296.8 $933.8 $986.3 $648.9 Revolving Balance Changes 540.2 532.7 554.7 431.9 478.8 Net (Charge-offs) Recoveries (1.2) (2.2) (4.6) 0.1 (4.6) (1) Payoffs (401.1) (426.9) (395.7) (534.5) (497.3) (1) Paydow ns (
Slide 26: Strong Asset Quality
Strong Asset Quality Net Loan Charge-Offs (Recoveries) Delinquencies ($0.1) Net Charge-offs (Recoveries) NCOs / Average Loans Delinquencies (1) Delinquencies / Total Loans Nonperforming Loans Allowance for Credit Losses Nonperforming Loans NPLs / Total Loans Allowance for Credit Losses on Loans ACL
Slide 27: Detailed Net Charge-Off History
Detailed Net Charge-Off History Historical ($ in thousands) 2004 2005 2006 2007 2008 2009 2010 2011 Commercial Loans (1) 893 1,818 2,367 1,569 2,943 4,113 6,007 11,880 (1) Other 5,248 5,855 4,625 6,704 8,812 16,145 15,690 12,255 Total Net Charge-Offs (Recoveries) $ 6,141 $ 7,673 $ 6,992 $ 8,273 $ 11
Slide 28: High-Quality Investment Portfolio
High-Quality Investment Portfolio Available-for-Sale (1) Held-to-Maturity (1) $7,566 $6,999 $6,963 $6,816 $6,537 $5,785 $5,872 $5,872 $5,824 $5,766 Average balances - $ millions Average balances - $ millions GNMA/GSE Mortgage-Backed General Obligation Municipals Corp. & Commercial Paper GSE Agencies
Slide 29: Securities Portfolio Statistics
Securities Portfolio Statistics Net Securities Portfolio Activity (1) Amortized Fair Unrealized Cost Value Loss (3) $ in millions 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 Available for Sale Mortgage-backed 4,175 3,480 (695) Roll-off / Cash Flow $304 $246 $250 $243 $240 Municipals 1,367 1,207 (160) Roll-off Yie
Slide 30: Diversified Deposit Mix
Diversified Deposit Mix Deposits by Line of Business $31,374 $31,562 $31,475 $31,330 Brokered $29,797 6% Fund Services 6% Commercial Institutional Capital Markets & Corp. Trust 14% Commercial Banking 38% Investor Solutions 7% Healthcare Services 9% Consumer & Private Wealth 20% Personal Linked-Qtr.
Slide 31: Interest Rate Sensitivity
Interest Rate Sensitivity Impact to Net Interest Income Assumptions Ramp Scenario – Static Balance Sheet ▪ Projected rates for new loans and deposits based on historical analysis, management outlook and repricing strategies ▪ Asset prepayments and other market risks are developed from industry estim
Slide 32: Liquidity & Capital Position
Liquidity & Capital Position Available Liquidity Ample Sources Liquidity Strong Capital As of September 30, 2023 $ billions Total Available Liquidity Sources * 18.1 Regulatory Capital Ratios Estimated Uninsured Deposits (1) 20.7 Estimated Uninsured Deposits, as adjusted (2) 14.2 12.68% Liquidity / U
Slide 33: Line of Business Updates
Line of Business Updates Milwaukee, WI
Slide 34: Commercial Banking: Commercial Capabilities
Commercial Banking Commercial Capabilities Commercial Lending Portfolio Average Loan Balance & Composition $19.2B Middle Market ▪ C&I Lending ▪ Working capital lines ▪ Owner-Occupied CRE ▪ Equipment loans Investment Real Estate 30% Investment Real Estate ▪ Office ▪ Retail Middle Market ▪ Industrial
Slide 35: Commercial Banking: C&I Lending
Commercial Banking C&I Lending Commercial & Industrial Statistics C&I Industries as % of UMB Loans (1) ▪ Includes Middle Market, Lending Verticals & Small / Medium Business Other (2) ▪ Considerations Retail Finance & ▫ Internal limits on loan size and projects per sponsor Insurance Commercial 9% ▫ C
Slide 36: Commercial Banking: Commercial Real Estate
Commercial Banking Commercial Real Estate Commercial Real Estate Statistics Investment CRE as % of UMB Loans (1) ▪ Total CRE & Construction = 38% of UMB loans $8.8B Mixed Other (4) ▪ Owner-occupied – new purchase or refinance Use ▪ Real estate development – construction / perm Const. / Land Dev. 10%
Slide 37: Investment Real Estate: Select Property Details
Investment Real Estate Select Property Details Total Investment CRE Portfolio Office CRE Portfolio Average Loan-to-Value, Select Industries MSA Diversification $ millions Statistics ▪ Industrial: 61% Dallas-Fort Worth-Arlington, TX $218 ▪ Average Loan: $8.9mm ▪ Multifamily: 54% Jacksonville, FL 92 ▪
Slide 38: Personal Banking: Consumer
Personal Banking Consumer Strategic & Stable Source of Low-Cost Funds High Customer Satisfaction Consumer plays a strategic role for UMB as a large and stable source of Consumer serves the personal banking needs of deposits. Poised for continued asset growth clients across all divisions of the bank
Slide 39: Personal Banking: Private Wealth Management
Personal Banking Private Wealth Management Customer Assets Wealth Management Personal $11.7B Trust ▪ Financial planning Non-Managed AUA 21% ▪ Discretionary investment management 25% ▪ Strategic wealth solutions for ultra-high net worth Managed Assets (AUM) families ▪ Business succession and exit pla
Slide 40: Institutional Banking: Fund Services & Institutional Custody
Institutional Banking Fund Services & Institutional Custody Assets Under Administration Registered Funds & Alternative Investments Provides services for 1,700 funds, including registered and alternative $400B investment funds, PE funds, real estate and venture capital funds and ETFs and more. $383B
Slide 41: Corp/Specialty Trust & Capital Markets
Institutional Banking Corp/Specialty Trust & Capital Markets Corporate Trust & Escrow Services Capital Markets Division Provides trustee, paying agent and escrow services to municipal Capital solutions including fixed income sales, trading and underwriting and corporate issuers. for institutional, m
Slide 42: Investor Solutions & Healthcare Services
Institutional Banking Investor Solutions & Healthcare Services Investor Solutions $54B ~75mm Our banking as a service (BaaS) solution includes deposit services for checking, saving, and investment accounts, including expanded FDIC insurance through our proprietary Sweep Program. Sample Fintech Partn
Slide 43: Payments: Credit & Debit Card Products
Payments Credit & Debit Card Products Card Purchase Volume & Interchange Trends 3Q ’23 Card Spend $4.0B $4,079 $4,020 $4,009 $3,680 $3,708 #24 Healthcare Debit Consumer Debit Inst. Cash Mgmt. 24th in U.S. Credit Card Commercial Credit Consumer Credit Interchange Income Purchase Volume (2) Dollars in
Slide 44: Appendix
Appendix Phoenix, AZ
Slide 45: Governance: Our Board of Directors
Governance Our Board of Directors Robin Beery Janine Davidson K.C. Gallagher Greg Graves Mariner Kemper Gordon Lansford CC (Chair), RC CC, GC AC, RC Lead Independent Chairman of AC (Chair), CC Director, GC (Chair) the Board Tim Murphy Tammy Peterman Kris Robbins Josh Sosland Leroy Williams AC, CC GC
Slide 46: Forward-Looking Statements
Forward-Looking Statements 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 cur
Slide 47: Additional Information
Additional Information Estimated Uninsured Deposit Analysis $ billions Estimated Uninsured Deposits (1) 20.7 Less: Affiliate Deposits (2) (1.5) (3) Less: Collateralized Deposits (4.9) (4) Estimated uninsured deposits ex. items above $14.2 Total Deposits (5) $33.4 Estimated total uninsured deposits a
Slide 48: Non-GAAP Reconciliations
Non-GAAP Reconciliations The following are non-GAAP measures used from time to time. To the extent a non-GAAP measure is used in this presentation, a reconciliation to such measure’s closest GAAP equivalent is provided below. UMB believes that these non-GAAP financial measures may be useful to inves
Slide 49: Non-GAAP Reconciliations
Non-GAAP Reconciliations Operating Pre-Tax, Pre-Provision Income Three Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, 2023 2023 2023 2022 2022 Net interest income (GAAP) $ 222,287 $ 225,611 $ 241,696 $ 245,166 $ 233,485 Noninterest income (GAAP) 133,317 138,082 130,200 125,497 128,723 N
Slide 50: Non-GAAP Reconciliations
Non-GAAP Reconciliations Tangible Common Equity Ratio & Tangible Common Equity Ratio, ex. AOCI As of Sept. 30, Jun. 30, Dec. 31, Sept. 30, 2023 2023 2022 2022 Total shareholders' equity (GAAP) $ 2,806,659 $ 2,831,628 2,667,093 $ 2,523,545 Less: Intangible assets Goodwill 207,385 207,385 207,385 182,
Slide 51: Non-GAAP Reconciliations
Non-GAAP Reconciliations Operating Return on Tangible Common Equity, Excluding AOCI Return on Tangible Common Equity As of Sept. 30, Jun. 30, Sept. 30, 2023 2023 2022 Average shareholders' equity (GAAP) $ 2,891,854 $ 2,876,832 $ 2,705,806 Less: Average Intangible assets Average Goodwill 207,385 207,
Slide 52: Non-GAAP Reconciliations
Non-GAAP Reconciliations Tangible Book Value As of Sept. 30, Sept. 30, Dec. 31, Dec. 31, 2023 2018 2022 2007 Total shareholders' equity (GAAP) $ 2,806,659 $ 2,203,464 $ 2,667,093 $ 890,574 Less: Intangible assets Goodwill 207,385 180,867 207,385 94,512 Other intangibles, net 73,060 16,335 78,724 16,