![]() Quality endures. Third 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 3Q14 3Q13 2Q14 vs. 3Q13 vs. 2Q14 Net Interest Income 87,526 $ 85,545 $ 86,170 $ 2.3 1.6 Noninterest Income 126,475 121,625 134,001 4.0 (5.6) Total Revenue 214,001 207,170 220,171 3.3 (2.8) Noninterest Expense 161,461 153,063 166,511 5.5 (3.0) Operating Income 52,540 54,107 53,660 (2.9) (2.1) Provision for loan losses 4,500 6,500 5,000 (30.8) (10.0) Income before Taxes 48,040 47,607 48,660 0.9 (1.3) Income Tax Expense 12,410 13,175 13,988 (5.8) (11.3) Net Income 35,630 $ 34,432 $ 34,672 $ 3.5 2.8 Diluted EPS 0.78 $ 0.83 $ 0.76 $ (6.0) 2.6 Dividends per share 0.225 0.215 0.225 4.7 0.0 WASO 44,890,309 40,698,700 44,823,370 10.3 0.1 % variance |
![]() 70.77% 73.64% 79.67% 73.32% 72.25% 2.61% 2.51% 2.39% 2.53% 2.53% 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Efficiency Ratio Net Interest Margin 10.84% 9.08% 6.13% 8.77% 8.77% 0.92% 0.89% 0.58% 0.89% 0.90% 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Return on Avg Equity Return on Avg Assets Performance Metrics ROAE/ROAA Efficiency Ratio/NIM 4 |
![]() Select Balance Sheet Items 5 $ in thousands, average balances; unaudited vs. 3Q'13 vs. 2Q'14 Avg. Balance Avg. Balance Avg. Balance Assets Loans, net of unearned interest 6,996,363 $ 3.50 6,418,368 $ 3.65 6,897,840 $ 3.51 9.0 1.4 Total securities 6,992,618 1.92 6,985,343 1.99 6,940,448 1.97 0.1 0.8 Total earning assets 14,575,849 2.62 13,855,913 2.71 14,526,859 2.63 5.2 0.3 Allowance for loan losses (77,347) (72,792) �� (75,929) 6.3 1.9 Total assets 15,638,322 $ 14,923,769 $ 15,618,192 $ 4.8 0.1 Liabilities and Shareholders' Equity Interest-bearing deposits 7,444,093 $ 0.16 7,117,927 $ 0.17 7,126,614 $ 0.17 4.6 4.5 Total interest-bearing liabilities 8,797,486 0.15 8,886,697 0.16 8,725,371 0.17 (1.0) 0.8 Noninterest-bearing demand deposits 5,060,662 4,669,742 5,152,980 8.4 (1.8) Shareholders' Equity 1,612,470 1,260,330 1,585,612 27.9 1.7 Total liabilities and shareholders' equity 15,638,322 $ 14,923,769 $ 15,618,192 $ 4.8 0.1 Net interest spread 2.47 2.55 2.46 Net interest margin 2.53 2.61 2.53 % variance 3Q'14 3Q'13 2Q'14 Avg Yield / Rate % Avg Yield / Rate % Avg Yield / Rate % |
![]() Consistent Loan Growth 5 Year CAGR 9.9% 6 Average Net Loans & Loan Yields $4.6 $4.8 $5.3 $6.4 $7.0 4.92% 3.50% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% Average Net Loans Average Loan Yield |
![]() Credit Quality Metrics Net Charge-Offs $ thousands Nonperforming Loans $ thousands 7 $3,209 $4,187 $3,737 $3,713 $3,985 0.20% 0.26% 0.23% 0.22% 0.23% 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Net Charge-offs NCOs/Avg Loans $31,260 $30,706 $30,153 $27,175 $32,662 0.48% 0.47% 0.45% 0.39% 0.46% 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Nonperforming Loans NPLs/Loans |
![]() Net Interest Income 8 +2.3% Net Interest Income 3Q’14 vs. 3Q’13 • Increased loan balances $79.1 $79.5 $79.1 $80.4 $80.4 $80.2 $79.5 $82.3 $85.5 $85.9 $85.4 $86.2 $87.5 2.98% 2.91% 2.75% 2.82% 2.80% 2.64% 2.51% 2.56% 2.61% 2.51% 2.39% 2.53% 2.53% $65.0 $70.0 $75.0 $80.0 $85.0 $90.0 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Net Interest Income NIM% |
![]() 58.6% 17.1% 13.5% 3.0% 2.6% 2.5% 2.0% 0.7% 0.02% Bankcard Fees Noninterest Income Highlights 5 Year CAGR 17.8% Trust & Securities Processing Composition: Equity Earnings/Alternatives Trading & Investment Banking Other Deposit Service Charges Trust & Securities Processing Brokerage Fees Gains on Sale of Securities ($ millions) Insurance Fees 9 Source of income: 3Q'14 3Q'13 Institutional Investment Mgmt. $33.7 $32.9 Asset Servicing $22.6 $20.3 Bank (inst. & personal asset mgmt. $17.7 $15.2 $74.1 $68.5 $32.6 $39.8 $51.9 $56.3 $68.5 $74.1 Trust & Securities Processing Revenue |
![]() Non-Int 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 5.5% to $161.5 million vs. 3Q’13 • Salary and benefit expense increased $6.3 million or 7.5% compared to 3Q’13 • Expense for contingent consideration liabilities on acquisitions was $2.2 million in 3Q’14 compared to $1.1 million a year ago Salary 5yr CAGR 8.4% Non-Int Income 5yr CAGR 9.5% Managed FTE Costs; Growing Noninterest Income 10 * Noninterest Income/Noninterest Expense Demonstrating Operating Leverage |
![]() ![]() ![]() ![]() Average Balance, AFS: $6.7 billion Average Yield: 1.86% Investment Mix Securities Available for Sale, At September 30, 2014 Agencies High Quality Investment Portfolio 11 CDs & Corporates Municipals Mortgage-Backed Securities Treasuries AFS Portfolio Statistics 46.8% 29.1% 14.6% 2.0% 7.5% Securities Gains $ in thousands 3Q13 1,140 $ 4Q13 (10) $ 1Q14 1,470 $ 2Q14 2,569 $ 3Q14 26 $ Roll off Purchased ($ millions) Yield ($ millions) Yield 4Q'13 $308 2.04% $355 0.64% 1Q'14 $528 1.53% $618 1.26% 2Q'14 $275 2.23% $560 1.35% 3Q'14 $244 1.98% $311 1.45% Scheduled Cash Flow 4Q'14 $272 2.08% Next 12 months $1,071 1.98% Duration/Life (in months) at 09/30/14 at 06/30/14 Avg. Life Total 45.15 46.93 Duration Total 40.20 42.55 |
![]() Deposit Growth Deposits & % of Free Funds $ billions 3Q’14 Cost of Funds 0.15% Including DDA 0.09% 12 $9.4 $13.0 $10.6 $12.8 38.5% 41.6% 43.2% 42.9% $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 Interest Bearing Non-Interest Bearing |
![]() 12.45 12.20 11.92 14.43 14.51 11.30 11.20 11.05 13.61 13.72 6.56 6.71 6.81 8.41 8.90 2010 2011 2012 2013 3Q14 Total Risk-Based Capital Tier 1 Capital Tier 1 Leverage Strong Capital Position Tier 1 Capital Ratio vs. Industry 3Q 2014 13 Average Equity ($ billions) 5 yr CAGR 9.8% Capital Ratio Trends Industry Median as of 2Q14; Source: SNL Financial |
![]() Business Segment Updates |
![]() $8.3 $9.5 $10.4 $11.8 $12.5 32.7% 37.1% 40.4% 39.6% 40.5% 3Q'10 3Q'11 3Q'12 3Q'13 3Q'14 Interest Bearing Non-Interest Bearing $4.6 $4.8 $5.3 $6.4 $7.0 3Q'10 3Q'11 3Q'12 3Q'13 3Q'14 Bank 15 Average Net Loans $ in billions 5 yr CAGR 9.9% 5 yr CAGR 10.9% Average Deposits $ in billions Net loans grew for the 18 consecutive quarter, increasing by 9.2% year-over- year to $7.1 billion Private Wealth managed AUM increased 13.5% totaling $7.6 billion in 3Q’14 compared to 3Q’13 Private Banking average loans increased 26.7% to $386.7 million vs. 3Q’13 3 Quarter 2014 Highlights rd th Bank Operating Results $ in 000s, unaudited 3 mos Ended June 30, Y/Y LQ 2014 2013 2014 Net interest income 72,906 $ 73,419 $ 72,481 $ -0.7% 0.6% Provision for loan losses 2,446 1,833 2,686 33.4% -8.9% Noninterest income 48,385 48,945 56,006 -1.1% -13.6% Noninterest expense 99,307 93,150 100,928 6.6% -1.6% NI before taxes 19,538 27,381 24,873 -28.6% -21.4% Income tax expense 5,081 6,922 7,211 -26.6% -29.5% Net income 14,457 $ 20,459 $ 17,662 $ -29.3% -18.1% pre-tax profit margin 16.1% 22.4% 19.4% 3 mos Ended % Change September 30, |
![]() Bank - Lending 16 Diverse Loan Book (Actual Loan Balances at September 30) 46.6% 53.8% 28.2% 25.4% 10.7% $5.4B $7.1B 8.9% 8.9% $6.5B 6.1% 4.0% 4.5% 1.6% $4.8B 1.3% 3Q'11 3Q'12 3Q'13 3Q'14 Commercial & Industrial* Commercial Real Estate Home Equity Credit Card Consumer Real Estate Consumer - Other *includes C&I, real estate construction and leases |
![]() Bank - Deposits Diverse Sources of Deposits (Average Deposits for Three Months Ended September 30) 17 31.4% 32.5% 35.3% 25.1% 6.1% 7.8% 7.3% 6.9% 8.3% 6.3% 3.1% 6.5% 4.6% 3.4% 9.8% 4.8% $9.5B $10.4B $11.8B $12.5B 0.5% 0.3% 3Q'11 3Q'12 3Q'13 3Q'14 Commercial/Treasury Mgmt Consumer Banking Asset Servicing Private Wealth Mgmt Institutional Asset Mgmt Healthcare Svcs Small Business Banking Inst. Banking & Investor Services Other |
![]() Bank – Commercial Banking High Growth Regions 3Q’14 vs. 3Q’13 Commercial Loans By Region Loan Balances $ in billions, Average C&I and CRE Loan Balances for Three Months Ended September 30 5 yr CAGR 11.1% 18 48.0% 45.9% 44.1% 42.3% 42.2% 0% 50% 100% 3Q'10 3Q'11 3Q'12 3Q'13 3Q'14 KC CO STL Greater MO KS OK AZ NE TX $3.57 $3.79 $4.23 $5.28 $5.75 3Q'10 3Q'11 3Q'12 3Q'13 3Q'14 • Texas +649.8% • Arizona +37.4% • Kansas +10.4% |
![]() Bank – Private Wealth Mgmt. & Consumer Banking 19 $473 $512 $564 $573 $629 $470 $524 $604 $652 $733 50.1% 49.4% 48.3% 46.8% 46.2% 3Q '10 3Q '11 3Q '12 3Q '13 3Q '14 Balances Unused Commitments Utilization Home Equity Lines of Credit $ in millions $0.94B $1.04B $1.17B $1.23B $1.36B $5,366 $6,390 $7,044 $7,376 $7,565 $7,562 $2,035 $2,219 $2,853 $3,195 $3,326 $3,515 $188 $226 $351 $364 $393 $394 2011 2012 2013 1Q'14 2Q'14 3Q'14 Private Wealth & Institutional Asset Mgmt Prairie Capital Management Brokerage Assets Assets Under Management $ in millions $8.8B $10.2B $10.9B $11.3B $11.5B $7.6B |
![]() $29.3 $31.2 $32.2 $32.4 $30.6 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Institutional Investment Management 20 Total Scout Assets Under Management $ in billions AUM increased 4.5% to $30.6 billion compared to 3Q’13 Extended employment agreements with key principals of Reams and look forward to continued growth with one of the industry’s most respected fixed income teams 3 Quarter 2014 Highlights rd Institutional Investment Management Operating Results $ in 000s, unaudited 3 mos Ended June 30, Y/Y LQ 2014 2013 2014 Net Interest income - $ (11) $ (1) $ 100.0% 100.0% Noninterest income 33,919 33,842 33,999 0.2% -0.2% Noninterest expense 20,910 21,054 22,111 -0.7% -5.4% NI before taxes 13,009 12,777 11,887 1.8% 9.4% Income tax expense 3,350 3,506 3,375 -4.4% -0.7% Net income 9,659 $ 9,271 $ 8,512 $ 4.2% 13.5% pre-tax profit margin 38.4% 37.8% 35.0% September 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) Institutional Investment Management 21 $2,994.8 $29,308.9 $1,858.5 $31,167.4 ($1,767.0) $30,627.3 |
![]() Total AUM $30.6B $19.9B $19.7B Institutional Investment Management 22 $23.5B $31.2B Equity Mutual Funds Equity Institutional & Other Money Market Fixed Income Institutional & Other Fixed Income Mutual Funds |
![]() 35.9% 25.2% 18.1% 11.1% 5.1% 4.6% AUM by Strategy – As of 3Q’14 Equity Strategies International Mid Cap International ADR Emerging Markets Global Small Cap Other: 23 Fixed Income Strategies Core Plus Low Duration Long Duration Core Intermediate Unconstrained Unconstrained UCITS Real Return Equity Fixed Income 59% 41% 60.6% 33.9% 3.2% 2.0% 0.3% Other: Large Cap Equity Opportunity Global Aggregate |
![]() $1.06 $1.08 $1.31 $1.36 $1.29 $1.26 $1.58 $1.48 $1.37 $1.38 $1.79 $1.72 $1.64 $1.63 $2.10 $2.18 $2.11 $14.3 $16.3 $15.4 $16.4 $18.6 Purchase Volume ($ billions) Interchange ($ millions) Payment Solutions Total Card Purchase Volume & Interchange Revenue 24 Durbin effective Credit and debit card purchase volume increased 28.5% vs. 3Q’13 to $2.11 billion HSA deposits and assets grew by nearly 40% vs. 3Q’13 to $892.6 million Healthcare payer-to-provider purchase volume surpassed $1 billion YTD during the 3 quarter 3 Quarter 2014 Highlights rd rd Payment Solutions Operating Results $ in 000s, unaudited 3 mos Ended June 30, Y/Y LQ 2014 2013 2014 Net interest income 13,442 $ 11,587 $ 12,390 $ 16.0% 8.5% Provision for loan losses 2,054 4,667 2,314 -56.0% -11.2% Noninterest income 21,579 18,409 21,219 17.2% 1.7% Noninterest expense 22,056 21,658 24,603 1.8% -10.4% NI before taxes 10,911 3,671 6,692 197.2% 63.0% Income tax expense 2,795 1,283 1,910 117.8% 46.3% Net income 8,116 $ 2,388 $ 4,782 $ 239.9% 69.7% pre-tax profit margin 31.2% 12.2% 19.9% % Change September 30, 3 mos Ended |
![]() Payment Solutions 25 Healthcare Purchase Volume Trends $millions * Interchange revenue from Healthcare cards divided by purchase volume on Healthcare cards 6.8% 8.9% 16.9% 23.4% 22.7% 32.5% 37.7% $261.5 $252.3 $512.2 $461.2 $393.8 $350.0 $682.2 $536.4 $448.0 $421.4 $881.3 $748.6 $680.2 $649.1 $1,150.0 $1,152.1 $1,082.9 0.44% 0.38% 0.39% 0.34% 0.31% 0.20% 0.25% 0.30% 0.35% 0.40% 0.45% Payer-to-Provider Volume Other Healthcare Volume Effective Interchange Rate * |
![]() $84.2 $125.1 $169.8 $255.2 $298.5 $399.6 $595.0 $824.8 $16.7 $15.4 $20.9 $24.7 $24.9 $30.9 $47.4 $67.8 2005 2006 2007 2008 2009 2010 2011 2012 2013 3Q '14 HSA Deposits HSA Assets Payment Solutions 26 Healthcare Deposits and Assets $millions $36.6M $65.8M $100.8M $140.5M $190.7M $279.9M $323.3M $430.5M $642.4M $892.6M Healthcare provided 6.5% of Total Avg. Deposits in 3Q’14 |
![]() Asset Servicing 27 Assets Under Administration $billions Investment Managers Series Trust assets increased 6.6% in 3Q’14 and >50% YTD 46 new fund accounting & administration clients have been added during the past 12 months, increasing AUA in that business by 22.6% 3 Quarter 2014 Highlights rd Asset Servicing Operating Results $ in 000s, unaudited 3 mos Ended June 30, Y/Y LQ 2014 2013 2014 Net interest income 1,178 $ 550 $ 1,300 $ 114.2% -9.4% Noninterest income 22,592 20,429 22,777 10.6% -0.8% Noninterest expense 19,188 17,201 18,869 11.6% 1.7% NI before taxes 4,582 3,778 5,208 21.3% -12.0% Income tax expense 1,184 1,464 1,492 -19.1% -20.6% Net income 3,398 $ 2,314 $ 3,716 $ 46.8% -8.6% pre-tax profit margin 19.3% 18.0% 21.6% % Change September 30, 3 mos Ended |
![]() Asset Servicing Fund Accounting & Administration Alternative Asset Servicing Custody Transfer Agency 28 $35.9 $44.1 $48.4 $52.1 $58.2 $63.0 $66.8 $71.4 $71.4 160 179 181 182 196 219 229 238 242 2011 2012 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Assets Under Administration # of Funds Serviced $24.7 $26.3 $27.9 $28.3 $29.3 $27.9 $27.1 $31.3 $31.0 467 532 543 549 551 514 512 592 583 2011 2012 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Assets Under Administration # of Funds Serviced 802.4 946.8 1,058.7 1,213.8 1,208.0 1,280.1 1,122.6 1,195.8 1,037.0 256 270 275 284 303 301 313 318 327 2011 2012 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 # of Shareholders # of Funds Serviced $115.6 $54.9 $58.5 $56.2 $62.9 $68.0 $65.6 $70.5 $61.8 499 443 432 400 416 411 432 438 443 2011 2012 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Assets Under Administration # of Custody Accounts |
![]() Building a company for the next 100 years. UMB Financial Third Quarter 2014 |