![]() Quality endures. Second Quarter 2014 UMB Financial Exhibit 99.2 |
![]() Cautionary Notice about Forward-Looking Statements 2 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 current facts. All forward-looking statements are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Our actual future objectives, strategies, plans, prospects, performance, condition, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events, circumstances, or aspirations to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2013, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the Securities and Exchange Commission (SEC). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward- looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC. |
![]() Earnings Summary $ in thousands, except per-share data; unaudited 3 2Q14 1Q14 2Q13 vs. 1Q14 vs. 2Q13 Net Interest Income 86,170 $ 85,445 $ 82,327 $ 0.8 4.7 Noninterest Income 134,001 122,964 113,585 9.0 18.0 Total Revenue 220,171 208,409 195,912 5.6 12.4 Noninterest Expense 166,511 172,241 150,311 (3.3) 10.8 Operating Income 53,660 36,168 45,601 48.4 17.7 Provision for loan losses 5,000 4,500 5,000 11.1 - Income before Taxes 48,660 31,668 40,601 53.7 19.8 Income Tax Expense 13,988 8,255 10,672 69.4 31.1 Net Income 34,672 $ 23,413 $ 29,929 $ 48.1 15.8 Diluted EPS 0.76 $ 0.52 $ 0.74 $ 46.2 2.7 Dividends per share 0.225 0.225 0.215 - 4.7 WASO 44,823,370 44,742,068 39,966,869 0.2 12.2 % variance |
![]() Net Interest Income 4 +4.7% Net Interest Income 2Q’14 vs. 2Q’13 • Increased loan balances |
![]() 54.7% 15.4% 12.8% 4.9% 4.8% 2.6% 2.3% 1.9% 0.6% Bankcard Fees Noninterest Income Highlights 5 Year CAGR 20.7% Trust & Securities Processing Revenue Trust & Securities Processing Composition: Equity Earnings/Alternatives Trading & Investment Banking Other Deposit Service Charges Trust & Securities Processing Brokerage Fees Gains on Sale of Securities $73.4 million in 2Q14 Primary components: •$33.8M – Institutional Investment Management •$22.4M – Asset Servicing •$17.2M – Bank (Institutional & Personal Investment Mgmt) Insurance Fees 5 |
![]() NI Expense 5yr CAGR 7.0% 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 Noninterest expense increased 10.8% to $166.5 million vs. 2Q’13 • Salary and benefit expense increased $6.0 million or 7.1% compared to 2Q’13 • Added $5.3 million in expense for a contingency reserve related to Prairie Capital Management in 2Q’14 • Expense for contingent consideration liabilities on acquisitions was $805 thousand in 2Q’14 compared to just $12 thousand a year ago Salary 5yr CAGR 8.5% NI Income 5yr CAGR 11.6% Managed FTE Costs; Growing Noninterest Income 6 * Noninterest Income/Noninterest Expense Demonstrating Operating Leverage |
![]() Select Balance Sheet Items 7 $ in thousands, average balances; unaudited vs. 1Q14 vs. 2Q13 Avg. Balance Avg. Balance Avg. Balance Assets Loans, net of unearned interest 6,897,840 $ 3.51 6,678,932 $ 3.58 6,158,821 $ 3.69 3.3 12.0 Total securities 6,940,448 1.97 6,997,052 1.98 7,091,118 1.95 (0.8) (2.1) Total earning assets 14,526,859 2.63 15,438,211 2.48 13,777,533 2.67 (5.9) 5.4 Allowance for loan losses (75,929) (74,997) (70,004) 1.2 8.5 Total assets 15,618,192 $ 16,504,251 $ 14,875,428 $ (5.4) 5.0 Liabilities and Shareholders' Equity Interest-bearing deposits 7,126,614 $ 0.17 7,968,400 $ 0.16 6,943,399 $ 0.19 (10.6) 2.6 Total interest-bearing liabilities 8,725,371 0.17 9,641,869 0.15 8,796,109 0.18 (9.5) (0.8) Noninterest-bearing demand deposits 5,152,980 5,167,513 4,636,240 (0.3) 11.1 Shareholders' Equity 1,585,612 1,547,722 1,289,852 2.4 22.9 Total liabilities and shareholders' equity 15,618,192 $ 16,504,251 $ 14,875,428 $ (5.4) 5.0 Net interest spread 2.46 2.33 2.49 Net interest margin 2.53 2.39 2.56 % variance 2Q14 1Q14 2Q13 Avg Yield / Rate % Avg Yield / Rate % Avg Yield / Rate % |
![]() Consistent Loan Growth 5 Year CAGR 9.2% 8 Average Net Loans & Loan Yields |
![]() ![]() ![]() ![]() 47.5% 29.0% 14.5% 2.0% 7.0% Average Balance, AFS: $6.7 billion Average Yield: 1.90% Investment Mix Securities Available for Sale, At June 30, 2014 Agencies High Quality Investment Portfolio 9 Securities Gains $ in thousands 2Q13 1,519 $ 3Q13 1,140 $ 4Q13 (10) $ 1Q14 1,470 $ 2Q14 2,569 $ Duration/Life (in months) at 06/30/14 at 03/31/14 Avg. Life Total 46.93 46.66 Duration Total 42.55 43.03 Roll off Purchased ($ millions) Yield ($ millions) Yield 3Q13 $265 1.85% $77 1.02% 4Q13 $308 2.04% $355 0.64% 1Q14 $528 1.53% $618 1.26% 2Q14 $275 2.23% $560 1.35% Scheduled Cash Flow 3Q14 $226 1.91% Next 12 months $1,042 2.01% CDs & Corporates Municipals Mortgage-Backed Securities Treasuries AFS Portfolio Statistics |
![]() 73.50% 70.77% 73.64% 79.67% 73.32% 2.56% 2.61% 2.51% 2.39% 2.53% 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 Efficiency Ratio Net Interest Margin 9.31% 10.84% 9.08% 6.13% 8.77% 0.81% 0.92% 0.89% 0.58% 0.89% 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 Return on Avg Equity Return on Avg Assets Key Metrics Credit Quality $ in thousands Performance Metrics $3,234 $3,209 $4,187 $3,737 $3,713 0.21% 0.20% 0.26% 0.23% 0.22% 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 Net Charge-offs NCOs/Avg Loans Net Charge-Offs $25,489 $31,260 $30,706 $30,153 $27,175 0.40% 0.48% 0.47% 0.45% 0.39% 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 Nonperforming Loans NPLs/Loans Nonperforming Loans ROAE/ROAA Efficiency Ratio/NIM 10 |
![]() Business Segment Updates |
![]() Net loans grew for the 17 th consecutive quarter, increasing by 9.2% to $6.8 billion UMB presence in Texas has expanded into Fort Worth with a new office and a team of commercial lenders Private banking loan demand strong, with loan balances increasing 27.3% to $359.8 million vs. a year ago Bank 2 nd Quarter 2014 Highlights $8.3 $9.5 $ 10.3 $ 11.6 $12.3 33.5% 33.7% 40.0% 40.0% 42.0% 2Q'10 2Q'11 2Q'12 2Q'13 2Q'14 Interest Bearing Non-Interest Bearing Average Net Loans $ in billions Average Deposits $ in billions 5 yr CAGR 10.1% $4.4 $4.7 $5.2 $6.2 $6.9 2Q'10 2Q'11 2Q'12 2Q'13 2Q'14 5 yr CAGR 9.2% 12 Bank Operating Results $ in 000s, unaudited 3 mos Ended March 31, Y/Y LQ 2014 2013 2014 Net interest income 72,481 $ 70,558 $ 71,121 $ 2.7% 1.9% Provision for loan losses 2,686 1,628 2,426 65.0% 10.7% Noninterest income 56,006 46,436 47,420 20.6% 18.1% Noninterest expense 100,928 92,540 107,753 9.1% -6.3% NI before taxes 24,873 22,826 8,362 9.0% 197.5% Income tax expense 7,211 6,035 1,942 19.5% 271.3% Net income 17,662 $ 16,791 $ 6,420 $ 5.2% 175.1% pre-tax profit margin 19.4% 19.5% 7.1% 3 mos Ended % Change June 30, |
![]() Bank - Lending 13 Diverse Loan Book (Actual Loan Balances at June 30) 45.4% 54.8% 28.3% 25.0% 10.6% $5.3B $6.9B 8.7% 8.7% $6.3B 6.1% 4.3% 4.3% 2.7% $4.7B 1.1% 2Q'11 2Q'12 2Q'13 2Q'14 Commercial & Industrial* Commercial Real Estate Home Equity Credit Card Consumer Real Estate Consumer - Other *includes C&I and real estate construction and leases |
![]() Bank - Deposits Diverse Sources of Deposits (Average Deposits for Three Months Ended June 30) 14 29.3% 34.4% 35.6% 26.0% 11.8% 9.9% 6.0% 7.0% 7.2% 6.8% 2.8% 6.2% 4.2% 3.1% 5.1% 4.6% $9.5 $10.3 $11.6 $12.3 2Q'11 2Q'12 2Q'13 2Q'14 Commercial/Treasury Mgmt Consumer Banking Asset Servicing Private Wealth Mgmt Institutional Asset Mgmt Healthcare Svcs Small Business Banking Inst. Banking & Investor Services |
![]() Bank – Commercial Banking High Growth Regions 2Q’14 vs. 2Q’13 Commercial Loans By Region Loan Balances $ in billions, Average C&I and CRE Loan Balances for Three Months Ended June 30 5 yr CAGR 10.6% 15 47.7% 46.0% 43.9% 43.3% 42.1% 0% 50% 100% 2Q'10 2Q'11 2Q'12 2Q'13 2Q'14 KC CO STL Greater MO KS OK AZ NE TX |
![]() Bank – Private Wealth Mgmt. & Consumer Banking 16 Assets Under Management $ in billions $921 $1,004 $1,123 $1,194 $1,296 $452 $486 $549 $550 $584 49.1% 48.4% 48.8% 46.1% 45.1% 2Q '10 2Q '11 2Q '12 2Q '13 2Q '14 Commitments Balances Utilization Home Equity Lines of Credit $ in billions $7.4B $7.6B $8.8B $10.2B $10.9B $11.3B |
![]() $26.3 $29.3 $31.2 $32.2 $32.4 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 Institutional Investment Management 17 Total Scout Assets Under Management $ in billions 2 nd Quarter 2014 Highlights AUM increased 23.1% to $32.4 billion compared to 2Q’13 Launched the Unconstrained Bond strategy UCITS during the quarter. Assets in this vehicle grew to $82 million within the first three months. Institutional Investment Management Operating Results $ in 000s, unaudited 3 mos Ended March 31, Y/Y LQ 2014 2013 2014 Net Interest income (1) $ (10) $ (2) $ 90.0% 50.0% Noninterest income 33,999 29,155 34,095 16.6% -0.3% Noninterest expense 22,111 18,856 25,894 17.3% -14.6% NI before taxes 11,887 10,289 8,199 15.5% 45.0% Income tax expense 3,375 2,708 2,184 24.6% 54.5% Net income 8,512 $ 7,581 $ 6,015 $ 12.3% 41.5% pre-tax profit margin 35.0% 35.3% 24.0% June 30, % Change 3 mos Ended |
![]() AUM Drivers $ in millions $230.7 $996.1 Total Change ($millions) $32,394.3 $32,163.5 Total AUM ($millions) $567.3 $26,314.1 Institutional Investment Management 18 $2,994.8 $29,308.9 $1,858.5 $31,167.4 |
![]() Total AUM $32.4B $19.7B $23.5B Institutional Investment Management 19 $31.2B $32.2B |
![]() 34.4% 25.5% 19.3% 11.4% 5.1% 4.4% AUM by Strategy – As of 2Q’14 Equity Strategies International Mid Cap International ADR Emerging Markets Global Small Cap Other: 20 Fixed Income Strategies Core Plus Low Duration Long Duration Core Intermediate Unconstrained Global Aggregate Real Return Equity Fixed Income 55% 45% 63.3% 31.6% 3.1% 1.8% 0.2% Other: |
![]() Payment Solutions Total Card Purchase Volume & Interchange Revenue 2 nd Quarter 2014 Highlights 21 Durbin effective Credit and debit card purchase volume increased 27% to $2.2 billion vs. 2Q’13 HSA deposits and assets grew by 38.2% to $823.7 million vs. 2Q’13 1.4 million HSA/FSA accounts were added in the last 12 months; now stand at 4.6 million accounts Payment Solutions Operating Results $ in 000s, unaudited 3 mos Ended March 31, Y/Y LQ 2014 2013 2014 Net interest income 12,390 $ 11,192 $ 12,388 $ 10.7% 0.02% Provision for loan losses 2,314 3,372 2,074 -31.4% 11.6% Noninterest income 21,219 18,640 20,235 13.8% 4.9% Noninterest expense 24,603 21,850 21,015 12.6% 17.1% NI before taxes 6,692 4,610 9,534 45.2% -29.8% Income tax expense 1,910 1,203 2,609 58.8% -26.8% Net income 4,782 $ 3,407 $ 6,925 $ 40.4% -30.9% pre-tax profit margin 19.9% 15.5% 29.2% % Change June 30, 3 mos Ended |
![]() Payment Solutions 22 Healthcare Purchase Volume Trends $millions * Interchange revenue from Healthcare cards divided by purchase volume on Healthcare cards |
![]() Asset Servicing 2 nd Quarter 2014 Highlights 23 Assets Under Administration $billions AUA increased 23.7% over the past 12 months to $207.9 billion 80 new alternative servicing clients were added during the 2 nd quarter, increasing assets in that business by 15.5% UMB Fund Services was again recognized as a “Best Place to Work” in Milwaukee Asset Servicing Operating Results $ in 000s, unaudited 3 mos Ended March 31, Y/Y LQ 2014 2013 2014 Net interest income 1,300 $ 587 $ 1,938 $ 121.5% -32.9% Noninterest income 22,777 19,354 21,214 17.7% 7.4% Noninterest expense 18,869 17,065 17,579 10.6% 7.3% NI before taxes 5,208 2,876 5,573 81.1% -6.5% Income tax expense 1,492 726 1,520 105.5% -1.8% Net income 3,716 $ 2,150 $ 4,053 $ 72.8% -8.3% pre-tax profit margin 21.6% 14.4% 24.1% % Change June 30, 3 mos Ended |
![]() Asset Servicing 24 |
![]() Building a company for the next 100 years. UMB Financial Second Quarter 2014 |