Slide 1: Strength in Balance. Third Quarter 2015
Strength in Balance. Third Quarter 2015 UMB Financial October 27, 2015 Exhibit 99.2
Slide 2: Cautionary Notice about Forward-Looking Statements
Cautionary Notice about 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 stric
Slide 3: 3Q 2015 Performance Highlights
3Q 2015 Performance Highlights
Slide 4: Select Third Quarter Highlights
Select Third Quarter Highlights Loans at September 30, 2015, increased 27.4 percent to $9.0 billion with legacy UMB loans increasing 13.2 percent to $8.0 billion compared to September 30, 2014 Total deposits at September 30, 2015, increased 18.1 percent to $15.1 billion with legacy UMB deposits incr
Slide 5: Earnings Summary – 3Q 2015
Earnings Summary – 3Q 2015 $ in thousands, except per-share data; unaudited
Slide 6: Select Balance Sheet Items
Select Balance Sheet Items $ in thousands, average balances; unaudited Three Months Ended
Slide 7: UMB and Marquette Loans
UMB and Marquette Loans $9.0 $8.9
Slide 8: Key Performance Metrics
Key Performance Metrics (1) Tier 1 Capital calculated under Basel III requirements beginning in 1Q’15.
Slide 9: Efficiency Initiatives
Efficiency Initiatives
Slide 10: July 2015 Efficiency Initiative Announcement
In July 2015, UMB announced organizational and operational efficiencies with expected annualized cost savings of approximately $3.6 million, achieved through consolidation and reorganization, including: Efficiency Initiative – 2Q 2015 Actions The combination of the Consumer and Private Wealth lines
Slide 11: Efficiency Initiative – Subsequent Actions
Efficiency Initiative – Subsequent Actions Key Initiatives – Drive enhanced operating leverage and improve customer experience Select Business Process Improvement Actions Estimated efficiencies identified in this phase $29.3 Estimated efficiencies announced in July 2015 $3.6 Total Estimated Efficien
Slide 12: Components of Efficiency Initiative
Components of Efficiency Initiative $ millions 2015 2016 Annualized Salaries and Benefits (1) $5.2 $15.0 $23.4 Business Process Improvements 1.6 7.6 9.5 Total Estimated Cost Savings (2) $6.8 $22.6 $32.9 (1) Excludes severance costs (2) Excludes Marquette-related synergies The amounts in the 2015 and
Slide 13: Salaries and Benefits Efficiencies
$ millions 2015 2016 Annualized Salaries and Benefits Efficiencies (1) $5.2 $15.0 $23.4 Salaries & Benefits Details FTE reductions No backfill of certain positions vacated in 2015 Other (reduction in hours and overtime, reduction or elimination of other programs) Components of Salaries and Benefits
Slide 14: Factors Impacting Achievement of ~70% Efficiency Ratio
Assumptions Included Continued competitive pricing on loans Increased salary and benefits from normal cost of living adjustments and merit increases Continued prudent investment in growth businesses Continued investment related to regulatory requirements, cyber security, and modernization of core sy
Slide 15: 3Q 2015 Financials
3Q 2015 Financials
Slide 16: Marquette Integration Update
Marquette Integration Update Transaction Costs $ thousands 4Q14 1Q15 2Q15 3Q15 To-Date HR Costs $215.1 $121.1 $452.4 $1,909.1 $2,697.7 Technology Integration - $10.3 - $2,405.0 $2,415.3 Professional Fees $1,680.1 $627.0 $264.4 $93.0 $2,664.5 Other Integration Fees $46.4 $7.3 $70.2 $48.4 $172.3 Total
Slide 17: Consistent Loan Growth
Consistent Loan Growth End-of-Period Total Loans 3Q’15 Total Loans +27.4% vs. 3Q’14 (1) On May 31, 2015, we closed the acquisition of Marquette Financial Companies and loans with an acquired value of $980.4 million were added to the UMB portfolio. At September 30, the acquired loans plus production
Slide 18: Quality Credit Metrics
Quality Credit Metrics Net Charge-Offs $000’s Nonperforming Loans $000’s
Slide 19: Investment Portfolio
3rd Quarter 2015 Average Balance, AFS: $6.7 billion Average Yield: 1.84% Investment Mix Securities Available for Sale $6.7 billion at September 30, 2015 Agencies High Quality Investment Portfolio Corporates Municipals Mortgage-Backed Securities Treasuries AFS Portfolio Statistics
Slide 20: Deposit Growth
Deposit Growth Deposits & Percent of Free Funds Actual EOP Balances; $ billions 3Q 2015 Cost of Interest-Bearing Liabilities 0.21% Including DDA 0.13% $9.4 $13.0 $10.6 $12.8 $15.1
Slide 21: Balance Sheet – Strong Capital Position
Balance Sheet – Strong Capital Position Common Equity Tier 1 Ratio vs. Industry 3Q 2015 Average Equity ($ billions) Capital Ratio Trends Industry Median as of 2Q15; Source: SNL Financial (1) 3Q’15 ratios calculated under Basel III requirements Total Risk-Based Capital Tier 1 Capital Tier 1 Leverage
Slide 22: Noninterest Income
Noninterest Income Noninterest income decreased $17.4 million, or 13.7%, compared to 3Q’14 Trust and securities processing income fell by $8.9 million, or 12%, to $65.2 million, primarily due to reduced revenue from Scout Equity earnings on alternative investments decreased $7.5 million compared to
Slide 23: Noninterest Income Composition – 3Q 2015
Bankcard Fees Noninterest Income Composition – 3Q 2015 Trust & Securities Processing Revenue Trust & Securities Processing Composition: Deposit Service Charges Trust & Securities Processing Insurance Fees Trading & Investment Banking Brokerage Fees Other ($ millions) Gains on Sale of Securities Sour
Slide 24: Prairie Capital Management Summary
Prairie Capital Management Summary Select Components of Noninterest Income and Expense Related to PCM (2) Represents contingent consideration changes related to the settlement agreement for specific private equity funds. (1) Represents contingent consideration changes related to operational performa
Slide 25: Noninterest Expense
Noninterest Expense Noninterest expense increased $24.1 million, or 15.0%, compared to 3Q’14. Salaries and employee benefits expense increased $14.7 million, or 16.3%, year-over-year Marquette salaries were $9.4 million Acquisition related severances were $1.4 million Non-acquisition related severan
Slide 26: Business Segment Updates - 3Q 2015
Business Segment Updates - 3Q 2015
Slide 27: Bank Highlights and Segment Results
Bank Loans at September 30, 2015 stood at $9.0 billion, an increase of $1.9 million or 27.4% year-over-year Loans produced by legacy UMB lenders increased $937.9 million or 13.2% Total deposits at September 30 increased 18.1% vs. a year ago to $15.1 billion Private placement revenue bonds, shown as
Slide 28: Bank – Loan Composition
Bank – Loan Composition Diverse Loan Book (Actual Loan Balances at September 30) $4.8B $5.4B $6.5B $7.1B $9.0B Commercial Credit Card Commercial & Industrial (1) HELOC Residential Real Estate Real Estate Construction Commercial Real Estate Consumer Credit Card Consumer Other 1.6% 1.2% 1.8% 1.9% 1.8%
Slide 29: Bank – Lending: Loans by Region
Bank –Lending Loans by Region (Actual Loan Balances at September 30) $127.1 $213.0 $115.6 $176.9 $153.3 $208.3 $271.6 $206.3 $117.4 $235.9 $4.8B $5.4B $6.5B $7.1B $9.0B Colorado Kansas City Kansas Greater MO St. Louis Arizona Texas Oklahoma Marquette Transportation Fin (Natl. Sales) Nebraska Marquet
Slide 30: Asset Sensitivity at September 30, 2015
Asset Sensitivity at September 30, 2015 Net Interest Income Differential vs. Rates Unchanged (1) ($ millions) (1) This analysis is further described in Quarterly Reports on Form 10-Q under the heading “Net Interest Income Modeling” and is subject to the assumptions, risks, and uncertainties noted th
Slide 31: Bank – Deposits
Bank – Deposits Diverse Sources of Deposits (Actual Deposits at September 30) $9.4B $10.6B $13.0B $12.8B $15.1B Personal Banking - Consumer Commercial Institutional - IAM Personal Banking - Private Wealth Asset Servicing Healthcare Institutional - IBIS Small Business Other 3.1% 1.5% 0.3% 6.5% 1.6% 0
Slide 32: Bank – Asset Mgmt. & Home Equity Lending
$7.6B $8.8B $10.2B $11.6B $12.9B $1.1B $1.2B $1.2B $1.4B $1.6B Home Equity Lines of Credit $ in millions Assets Under Management $ in millions Bank – Asset Mgmt. & Home Equity Lending (1) (1) Includes $679.0 million from Marquette Asset Management
Slide 33: Institutional Investment Management Highlights
Institutional Investment Management Highlights Institutional Investment Management Segment Results $ in 000s, unaudited 3 mos Ended 3 mos Ended September 30, % Change June 30, % Change 2015 2014 Y/Y 2015 LQ Noninterest income 21,449 33,919 -36.8% 25,684 -16.5% Noninterest expense 16,512 20,913 -21.0
Slide 34: Total AUM
Total AUM $28.0B $19.7B $23.5B Institutional Investment Management $31.2B $31.2B Billions
Slide 35: AUM Drivers
AUM Drivers $ in millions ($570.7) $550.7 Total Change ($millions) $30,607.4 $31,178.1 Total AUM ($millions) Institutional Investment Management ($1,767.0) $30,627.3 ($567.7) $30,039.7 ($2,027.5) $28,012.2 3Q’15 2Q’15 1Q’15 4Q’14 3Q’14
Slide 36: AUM by Strategy
AUM by Strategy – As of September 30, 2015 Equity Strategies International Mid Cap International ADR Emerging Markets Global Small Cap Other: Fixed Income Strategies Core Plus Low Duration Long Duration Core Real Return Unconstrained Intermediate Equity Fixed Income Other: Equity Opportunity Global
Slide 37: Payment Solutions Highlights
Payment Solutions Highlights Payment Solutions Segment Results $ in 000s, unaudited 3 mos Ended 3 mos Ended September 30, % Change June 30, % Change 2015 2014 Y/Y 2015 LQ Net interest income $ 14,627 $ 13,469 8.6% $ 13,599 7.6% Provision for loan losses 1,167 2,054 -43.2% 2,388 -51.1% Noninterest in
Slide 38: Payment Solutions Card Purchase Volume & Interchange Revenue
Payment Solutions Total Card Purchase Volume & Interchange Revenue Commercial Credit Consumer Credit Consumer Debit Healthcare Debit Institutional Banking – IBIS Debit Interchange ($millions) $2.3B $1.3B $1.4B $1.6B $2.1B 1.6% 1.4% 1.2% 1.6% 1.3% Interchange Sources 3Q'15 ($ millions) Credit 13.5 De
Slide 39: Payment Solutions – Healthcare Services
Payment Solutions – Healthcare Services Healthcare Purchase Volume Trends $millions (1) Interchange revenue from Healthcare cards divided by purchase volume on Healthcare cards (1)
Slide 40: Healthcare Deposits and Assets
Payment Solutions – Healthcare Services Healthcare Deposits and Assets $millions $323.3 $430.5 $642.4 $917.5 $1,250.3 Healthcare provided 7.6% of Total Company Deposits in 3Q’15 Investment assets as a 2011 2012 2013 2014 3Q'15 % of total healthcare deposits & assets 7.7% 7.2% 7.4% 8.3% 8.1%
Slide 41: Multi-Channel Healthcare Strategy
We offer 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 Tech Cos Payment Aggregators 401(k) Record Keeper Healthcare Partners HSA Applications SSO Web Services Contr
Slide 42: Asset Servicing Highlights
Asset Servicing Assets Under Administration $billions Investment Management Series Trusts continue to grow, with 81 active funds and $12.6 billion in asset at September 30, 2015 Added 42 net new funds and increased assets under administration by 22.2% in the alternative space in the past 12 months F
Slide 43: Asset Servicing
Asset Servicing Fund Accounting & Administration Alternative Asset Servicing Custody Transfer Agency
Slide 44: Strength in balance – today and tomorrow
Strength in balance – today and tomorrow. Third Quarter 2015 UMB Financial