![]() Second Quarter 2013 UMB Financial Exhibit 99.1 |
![]() This document may contain forward-looking statements of expected future developments. We wish to ensure such statements are accompanied by meaningful cautionary statements pursuant to the safe harbor established by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may refer to projections of future financial performance and financial items, plans and objectives of future operations, and other matters. The forward-looking statements reflect management’s expectations and are based on currently available data; however, actual future results are subject to future events and uncertainties, which could materially affect actual performance and cause future results to differ materially from those referred to in the forward-looking statements. Such future events and uncertainties include, but are not limited to, changes in: loan demand, the ability of customers to repay loans, consumer saving habits, employee costs, pricing, interest rates, competition, legal or regulatory requirements or restrictions, U.S. or international economic or political conditions such as inflation or fluctuation in interest rates or in the values of securities traded in the equity markets. Any forward-looking statements should be read in conjunction with information about risks and uncertainties set forth in the company’s Securities and Exchange Commission reports, including its annual report, Form 10-K for the year ended December 31, 2012 and the 8-K filing which includes the press release for the quarter ended June 30, 2013. Forward-looking statements speak only as of the date they are made, and the Company does not intend to review or revise any particular forward-looking statement in light of events that occur thereafter or to reflect the occurrence of unanticipated events. Safe Harbor Statement 2 |
![]() A Different Kind of Bank The company The business model The performance |
![]() UMB is Born as City Center Bank - 1913 4 |
![]() A Leader in Serving our Customers “Beginning today, motorists can do business with the City Bank, Eighteenth Street & Grand Avenue, from the alley between Grand & McGee streets. They can drive to the new “cage” and make deposits without leaving the car.” The City Bank is the first bank in Kansas City to utilize such a plan to overcome traffic conditions inconvenient for patrons.” The Kansas City Star January 29, 1931 1931 – KC’s First “Drive Through Bank” 5 |
![]() Self-Reliance and Stability 1934 – Emerging from the Great Depression 6 No need for government assistance – then or now. “If we were to liquidate this bank today, we could pay our depositors one hundred cents on the dollar and collect our entire Surplus and Capital Account of $700,000 and a large part of the Undivided Profits Account.” - R. Crosby Kemper, Sr. in a letter to the Missouri Banking Commissioner, Oct. 1933 |
![]() “Our company has remained true to its values and the results are evident in our shareholder returns.” Mariner Kemper Chairman & Chief Executive Officer |
![]() Total Returns Reflect Long-Term Performance Total Shareholder Return June1993 – June 2013 8 416.8% $100 302.4% UMBF S&P 500 SNL U.S. Bank 506.6% |
![]() UMB At A Glance Assets under management Banking presence Branches/ATMs Acquisitions last 10 years Market cap Dividend payout ratio* $35.6B $35.6B 8 states 8 states 115/320+ 115/320+ 23 23 >$2.4B >$2.4B 31.8% 31.8% Total assets $15.3B $15.3B Revenue from fee businesses 58.0% 58.0% *Average over past 4 quarters As of June 30, 2013 9 |
![]() We Have Repositioned UMB… National Regional Low High Geographic focus Diversity of revenue streams More than a typical bank More stable earnings Faster growth 10 |
![]() …Resulting in a Growing National Presence Fund Services Prairie Capital Healthcare Services – National Sales Scout Investment Advisors – National Sales Corporate Trust UMB Bank presence Loan Production Office 11 |
![]() … With Diverse Revenue Streams 0% 50% 100% FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 2Q12 2Q13 Net Interest Income Noninterest Income High level of fee income reduces reliance on margin 12 |
![]() Today: UMB is More than a Regional Bank… …We are a diversified financial services company 13 DIVERSIFIED FINANCIAL SERVICES Healthcare Services Corporate Trust UMB Fund Services Scout Investments •JD Clark Prairie Capital •Reams Trust Services TRADITIONAL BANKING Card Services Treasury Management Diversified financial Products / services Banking National Regional Geographic focus UMB Insurance |
![]() A Financial Services Company The company The business model The performance |
![]() + + + High Quality Credit Diverse Revenue Streams Low-cost Funding Strong Balance Sheet Our Time-Tested Business Model |
![]() Our Credit Quality Outpaces the Industry Peer Average as of 1Q13; Source: SNL Financial Midwest Bank Peers as defined by Raymond James & Associates in their April 11, 2011 report. 2Q 2013 NPLs = 0.40% Shaded area is high/low range of the peer group Non-Performing Loans % of average loans 16 Peer Average UMBF 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Peer Average 2.85% |
![]() Today: More Fee Revenue than Our Peers % of Total Revenue from Fees 2Q13 • More stable earnings • Greater growth opportunities Industry Median as of 1Q13; Source: SNL Financial 17 3X vs. Industry 18.5% 58.0% Industry Median |
![]() Successful Record Growing Fee Businesses Noninterest Income ($000’s) *Includes Scout Investments and UMB Bank wealth management Asset Management Businesses (Total Company Assets Under Management*) 18 $62.4 $113.6 2Q13 2Q05 $8.2B $35.6B 2Q13 2005 |
![]() At June 30 40.0% vs. Industry Median* of 18.6% non-interest bearing deposits Low Cost Funding Sources >2X vs. Industry Average Non-Interest Bearing Deposits as % of Total Deposits *Industry Median as of 1Q13; Source: SNL Financial 19 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2Q'13 UMBF Industry Median |
![]() Balance Sheet – Strong with Growth Potential Tier 1 Capital Ratio 2Q 2013 Without Federal bailout funds Highly Liquid – Low Average Loan to Deposit Ratio 2Q 2013 Industry Median as of 1Q13; Source: SNL Financial 20 13.94% 10.72% Industry Median 76.2% 54.0% Industry Median |
![]() Commercial Real Estate Commercial & Industrial Consumer Real Estate Credit Card Home Equity Consumer Commercial Real Estate Commercial & Industrial Changing Loan Mix Consumer Quality Loan Composition 2Q 2013 Year-End 2006 Commercial & Industrial Commercial Real Estate 21 21.0% 5.2% 4.6% 20.0% 44.1% 5.1% 54.7% 24.8% 3.9% 6.7% 1.0% 9.0% |
![]() A Financial Services Company The company The business model The performance |
![]() 23 Consistent Performance – Despite Headwinds 6.2% 11.7% 7.0% 5.0% Revenue growth Average Asset Growth Average Equity Growth EPS growth 5 year CAGR (2Q’08--2Q’13) 26.5% Total Assets Under Management (diluted) |
![]() -16.7% -14.8% -4.2% -3.6% -3.6% -3.2% 0.0% 0.01% 1.1% 2.0% 3.4% 4.99% 7.3% 8.2% 5-Year Diluted Earnings Per Share 2Q’08 – 2Q’13 CAGR UMBF vs. Traditional Peers *Bank industry defined as all publicly traded banks per SNL Financial; EPS Growth vs. the Industry & Peers CYN Bank Industry Median * ONB BOH BXS FMER CFR TRMK CBSH HBHC COBZ TCB FMBI *All publicly traded banks with 2Q’13 reported EPS per SNL Financial 24 |
![]() 2 nd Quarter 2013 Highlights |
![]() Changing Earning Asset Mix 2Q’08 Net Loans – 54.9% Total Securities – 41.3% 26 48.5% 44.6% 41.9% 43.0% 44.9% 45.1% 49.4% 50.2% 53.2% 51.7% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 2Q'09 2Q'10 2Q'11 2Q'12 2Q'13 Net loans Total securities Fed funds & resell agreements Interest Bearing Due From Banks |
![]() Average Balance: $7.2 billion Average Yield: 1.95% Investment Mix Mortgage-Backed Securities Municipals CDs & Corporates Agencies Treasuries Trading Securities Investment Portfolio Statistics 27 Roll off Purchased ($ millions) Yield ($ millions) Yield 2Q12 $396 2.52% $636 1.69% 1Q13 $413 1.98% $769 1.31% 2Q13 $340 2.13% $815 1.41% Scheduled Cash Flow 3Q13 $269 1.81% Next 12 months $1,230 1.88% Duration/Life (in months) at 06/30/13 at 03/31/13 Avg. Life Total 48.67 42.79 Avg. Life Core 48.98 43.67 Avg. Life Noncore 32.48 5.29 Duration Total 46.80 39.75 Duration Core 47.11 40.54 Securities Gains ($ millions) 2Q12 3,222 $ 3Q12 259 $ 4Q12 210 $ 1Q13 5,893 $ 2Q13 1,519 $ 1.4% 14.6% 45.1% 31.1% 7.0% 0.7% |
![]() Liabilities Deposit Growth & % of Free Funds ($ billions) 2Q’13 Cost of Funds 0.18% Including DDA 0.11% 28 38.5% 40.8% 41.7% 34.0% $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Interest Bearing Non-Interest Bearing $11.7 $10.3 $9.9 $8.4 |
![]() Capital Total Shareholder Equity 29 Shareholder Equity ($billions) TCE Ratio Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 4.0% 6.0% 8.0% 10.0% 8.13% 7.71% 6.26% 5.97% 6.66% 7.36% 6.76% 6.90% 7.48% 7.78% 7.49% 6.55% 6.37% $1.07 $1.09 $1.06 $1.08 $1.13 $1.17 $1.19 $1.21 $1.25 $1.29 $1.28 $1.29 $1.23 |
![]() Net Interest Income 2Q’13 net interest income increased 2.4% vs. 2Q’12; driven by earning asset growth and improved deposit pricing 30 $77.7 $78.4 $78.8 $78.4 $79.9 $79.1 $79.5 $79.1 $80.4 $80.4 $80.2 $79.5 $82.3 3.13% 3.09% 3.15% 2.90% 2.98% 2.98% 2.91% 2.75% 2.82% 2.80% 2.64% 2.51% 2.56% $65.0 $67.0 $69.0 $71.0 $73.0 $75.0 $77.0 $79.0 $81.0 $83.0 $85.0 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 Net Interest Income NIM% |
![]() Noninterest Income Highlights 5 Year CAGR 2Q’08– 2Q’13 13.9% Trust & Securities Process Revenue Trust & Securities Processing Composition : Bankcard Fees Deposit Service Charges Insurance Fees & Commissions Trading & Investment Banking Trust & Securities Processing Gains on Sale of Securities Brokerage Fees Other $63.5 million in 2Q13 Primary components: •$29.2M - Institutional Investment Management •$19.3M – Asset Servicing •$15.0M – Personal & Institutional Asset Mgmt in the Bank segment 31 55.9% 4.8% 18.4% 1.1% 2.5% 14.1% 1.3% 1.9% $33.1 $28.6 $38.6 $53.6 $55.8 $63.5 |
![]() Noninterest Expense 32 Noninterest expense increased 3.9% to $150.3 million vs. 2Q’12 • Increase primarily driven by higher salary and benefits expense of $5.6 million and increased processing fees of $1.7 million related to fees paid to third-party distributors of the Scout Funds. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $40 $60 $80 $100 $120 $140 $160 $180 Salary/Benefit Expense Noninterest Income Total Noninterest Expense Coverage Ratio* Salary CAGR 8.7% NI Income CAGR 7.6% NI Expense CAGR 7.2% Managed FTE Costs; Growing Noninterest Income |
![]() Business Segment Updates |
![]() Institutional Investment Management $22.4 $22.6 $23.5 $25.7 $26.3 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 Total Scout Assets Under Management ($ billions) * Industry data source: Strategic Insight AUM increased 17.5% year- over-year to $26.3 billion Net inflows of $902 million for Q2’13; year-to-date flows of $2.5 billion Q2’13 industry stats: Equity funds realized $68.8B in net inflows; Taxable bond funds realized $3.0B in net inflows 2 nd Quarter 2013 Highlights Institutional Investment Management Operating Results 3 mos Ended March 31, Year-Over-Year Linked-Quarter 2013 2012 2013 Net Interest income (10) - - - - Noninterest income 29,160 23,625 28,553 23.43% 2.13% Noninterest expense 18,932 16,486 18,958 14.84% -0.14% NI before taxes 10,218 7,139 9,595 43.13% 6.49% Income tax expense 2,691 2,197 2,635 22.49% 2.13% Net income 7,527 4,942 6,960 52.31% 8.15% pre-tax profit margin 35.1% 30.2% 33.6% Ended June 30, % Change 3 mos Ended 34 |
![]() $51.6 $119.8 $1,435.7 $171.8 $703.5 $606.4 $585.7 ($84.0) ($622.9) $204.1 $134.4 $729.9 $354.0 $2.4 $48.7 ($250.4) -$1,000 -$500 $0 $500 $1,000 $1,500 $2,000 $2,500 3Q'12 4Q'12 1Q'13 2Q'13 Equity Flows Equity Market Impact Fixed Income Flows Fixed Income Market Impact AUM Drivers ($millions) $2,204.5 $932.7 $486.2 Total Change ($millions) $25,746.8 $23,542.3 $22,609.6 Total AUM ($millions) $567.3 $26,314.1 Institutional Investment Management 35 |
![]() Total AUM $19.9B $19.7B $23.5B $25.7B $26.3B Institutional Investment Management 36 $8.1 $8.2 $10.4 $11.0 $11.1 $0.2 $0.6 $0.9 $1.0 $1.3 $0.8 $0.6 $0.6 $0.8 $2.3 $2.3 $10.2 $10.3 $11.4 $11.4 $11.6 2010 2011 2012 1Q13 2Q13 Equity Mutual Funds Fixed Income Mutual Funds Money Market Equity Institutional & Other Fixed Income Institutional & Other |
![]() AUM by Strategy – As of 2Q’13 Acquired Reams Asset Management in December 2010 37 Equity Strategies International Mid Cap International ADR Emerging Markets Global Small Cap Other: Equity Fixed Income 49.0% 51.0% Fixed Income Strategies Core Plus Core Low Duration Long Duration Intermediate Unconstrained Global Aggregate 70.4% 24.7% 2.7% 1.9% 0.2% 29.4% 9.7% 23.3% 16.1% 2.1% 19.2% 0.2% |
![]() Fixed Income Rotation Change in Fixed Income Strategies Core Plus Core Low Duration Long Duration Intermediate Unconstrained Global Aggregate 2Q’13 2Q’12 38 47.3% 14.7% 21.3% 12.4% 2.1% 2.0% 0.1% 29.4% 9.7% 23.3% 16.1% 2.1% 19.2% 0.2% |
![]() Asset Servicing 39 $162.4 $179.3 $206.4 $156.0 $165.4 $168.0 2009 2010 2011 2012 1Q13 2Q13 Asset Servicing Operating Results 3 mos Ended March 31, Year-Over-Year Linked-Quarter 2013 2012 2013 Net interest income 587 463 675 26.78% -13.04% Noninterest income 19,275 18,779 20,278 2.64% -4.95% Noninterest expense 17,054 17,296 19,932 -1.40% -14.44% NI before taxes 2,808 1,946 1,021 44.30% 175.02% Income tax expense 967 838 578 15.39% 67.30% Net income 1,841 1,108 443 66.16% 315.58% pre-tax profit margin 14.1% 10.1% 4.9% % Change Ended June 30, 3 mos Ended 2 nd Quarter 2013 Highlights Assets Under Administration Total AUA increased by 14% to $168 billion Multiple-Series Trust surpasses $5 billion; doubled assets in < 1 year |
![]() Asset Servicing Fund Accounting & Administration Alternative Asset Servicing Custody Transfer Agency Business Metrics 40 $30.5 $35.9 $40.2 $39.8 $41.7 $44.1 $48.4 $52.1 2010 2011 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 Assets Under Administration # of Funds Serviced 179 181 116 160 170 170 170 182 $21.3 $24.7 $25.2 $25.8 $26.1 $26.3 $27.9 $28.3 2010 2011 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 Assets Under Administration # of Funds Serviced 406 467 487 504 520 532 543 549 $101.4 $115.6 $129.0 $48.5 $50.9 $54.9 $58.5 $56.2 2010 2011 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 Assets Under Administration # of Custody Accounts 470 499 511 418 423 443 432 400 554.9 802.4 884.1 882.1 946.8 1,058.7 1,213.8 2010 2011 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 # of Shareholders # of Funds Serviced 227 256 244 272 255 270 275 284 944.8 |
![]() Payment Solutions Total Card Purchase Volume & Interchange Revenue Durbin effective Payment Solutions Operating Results 3 mos Ended March 31, Year-Over-Year Linked-Quarter 2013 2012 2013 Net interest income 11,192 10,556 11,548 6.03% -3.08% Provision for loan losses 3,318 2,278 1,743 45.65% 90.36% Noninterest income 18,649 18,106 19,437 3.00% -4.05% Noninterest expense 21,986 16,620 20,051 32.29% 9.65% NI before taxes 4,537 9,764 9,191 -53.53% -50.64% Income tax expense 1,350 2,791 2,786 -51.63% -51.54% Net income 3,187 6,973 6,405 -54.30% -50.24% pre-tax profit margin 15.2% 34.1% 29.7% % Change Ended June 30, 3 mos Ended Purchase Volume 2Q ‘09–’13 18.1% Inter- change 2Q ‘09–’13 12.6% CAGR Total debit and credit card purchase volume +16.5% to $1.72 billion Interchange revenue +10% to $17.1 million 2 nd Quarter 2013 Highlights 41 $0.88 $0.85 $0.85 $1.04 $1.10 $1.06 $1.08 $1.31 $1.36 $1.29 $1.26 $1.58 $1.48 $1.37 $1.38 $1.79 $1.72 $10.7 $13.7 $15.8 $15.6 $17.1 Purchase Volume ($ billions) Interchange ($ millions) |
![]() Payment Solutions Health Savings Accounts & Balances * Deposits and investment assets Healthcare card purchase volume +39.6% to $748.6 million Interchange contribution +43% to $2.7 million 2 Quarter 2013 Highlights Healthcare Services Card Utilization 42 Commitments Outstandings Utilization 2009 2010 2011 2012 2Q '13 $296.7 $405.8 $422.4 $429.4 $410.2 18.5% 22.9% 17.0% 16.4% 15.6% $1,602.5 $1,774.7 $2,484.1 $2,613.1 $2,629.0 HSA Balances* # of accts 2009 2010 2011 2012 1Q13 2Q13 1.3 1.8 2.5 3.1 3.1 3.2 $190.7 $279.9 $323.3 $433.4 $607.6 $596.2 1.0 2.0 3.0 4.0 5.0 nd |
![]() Bank Assets Under Management ($ billions) Bank Operating Results 3 mos Ended March 31, Year-Over-Year Linked-Quarter 2013 2012 2013 Net interest income 70,558 69,354 67,260 1.74% 4.90% Provision for loan losses 1,682 2,222 257 -24.30% 554.47% Noninterest income 46,501 49,716 52,748 -6.47% -11.84% Noninterest expense 92,339 94,284 91,437 -2.06% 0.99% NI before taxes 23,038 22,564 28,314 2.10% -18.63% Income tax expense 5,664 6,422 7,181 -11.80% -21.13% Net income 17,374 16,142 21,133 7.63% -17.79% pre-tax profit margin 19.7% 19.0% 23.6% 3 mos Ended % Change Ended June 30, HELOC Lending Individual & institutional wealth management assets in Bank segment Small Business Banking loans increased 25% year-over-year to $158.5 million Private Banking exceeded $280 million in average loan balances, an increase of 40.9% over Q2 2012 UMB ranked #1 in C&I and CRE loan growth for 1Q13 vs. 4Q12 compared to our “Regional Competitor Banks” (Source: SNL Financial) 2 Quarter 2013 Highlights 43 nd Commitments Balances Utilization 2008 2009 2010 2011 2012 2Q13 $365 $430 $465 $524 $548 $551 49.3% 49.2% 49.4% 49.0% 47.1% 46.1% $741 $873 $941 $1,070 $1,163 $1,196 2008 2009 2010 2011 2012 2Q13 $4.4 $4.5 $8.0 $8.3 $9.6 $9.2 |
![]() $3.03 $3.46 $3.46 $3.75 $4.20 $5.00 2Q'08 2Q'09 2Q'10 2Q'11 2Q'12 2Q'13 Bank High Growth Regions 2Q’13 vs. 2Q’12 • Arizona +67% • Nebraska +37% 48.5% 48.2% 47.3% 46.1% 43.9% 42.8% 0% 50% 100% 2Q'08 2Q'09 2Q'10 2Q'11 2Q'12 2Q'13 KC CO STL Greater MO KS OK AZ NE Commercial Loan Concentration By Region • St. Louis +26% • Oklahoma +20% Commercial Loan Growth (C&I and CRE Loans) 44 5 yr CAGR 2Q ‘08–’13 10.6% |
![]() Bank Total Deposits 5 yr CAGR 2Q ‘08–’13 16.5% Deposits By Region 45 31.3% 32.3% 33.5% 33.7% 40.0% 40.0% $6.3 $7.6 $8.3 $9.5 $10.3 $11.6 2Q'08 2Q'09 2Q'10 2Q'11 2Q'12 2Q'13 Interest Bearing Non-Interest Bearing 52.4% 54.3% 55.3% 58.8% 60.2% 63.6% 0% 50% 100% 2Q'08 2Q'09 2Q'10 2Q'11 2Q'12 2Q'13 KC STL CO Gtr MO KS OK AZ NE |
![]() Strengths We are Leveraging Growing fee businesses Infrastructure Success building a diversified financial services company Building scale through strategic acquisitions Existing technology, operations, products, distribution 46 Diversified revenue |
![]() Building a company for the next 100 years. UMB Financial Second Quarter 2013 |