Quality endures.
2013 ANNUAL REPORT
UMB Financial Corporation
We are a diversified financial services holding company aligned
into four strategic business segments to best serve our customers
and achieve long-term growth opportunities.
Revenue by Segment
Net Income by Segment
$83.0M
$6.1M
Asset Servicing
As of December 31, 2013
Total Revenue
Market Cap
Total Assets
$495.6M
$85.6M
Banking
$120.1M
$14.2M
$126.4M
$28.1M
Payment Solutions
Institutional
Investment
Management
$825.1M
Earnings Per Share
(Diluted)
$3.20
$2.9B
5-Year Earnings Per
Share Growth
(CAGR) (Diluted)
6.10%
16.9B
Dividends Per Share
$.87
Assets Under
Management
$41.4B
Price to Earnings Ratio
19.78
Percentage Noninterest
Bearing Deposits
38.0%
Percent Revenue
From Fees
59.6%
i
Our Footprint
We serve customers across the entire country.
Headquarters
Banking Presence
Scout Investments
Prairie Capital
Fund Services
Payment Solutions
Corporate & Personal Trust
NASDAQ
UMBF
Capital Raised
(4.5M Shares Issued)
$231.4M
Headquarters
KC, MO
Years in Business
101
Locations / ATMs
112/309
UMBF Online
UMBFinancial.com
Acquisitions Last Ten Years
23
Online Banking
UMB.com
Associates
3,498
Follow UMB
ii
Industry
Industry totals represent the most recently
reported quarterly data available as of 2/10/14.
Source: SNL Financial
-33.3%
Dividend Growth
Third quarter through 12/31/13
2.21%
Nonperforming Loans To Total Loans
80.7%
Loans-To-Deposits Ratio
13.35%
Tier 1 Capital Ratio
+24.4%
Noninterest Income Growth
During the past five years.
UMBF
As of December 31, 2013
+125%
Dividend Growth
UMB increased its quarterly dividend
4.7 percent in 2013, the 13th time since
July 2003, a total increase of 125 percent.
.47%
Nonperforming Loans To Total Loans
UMB has maintained high asset quality
through all kinds of economic conditions.
47.8%
Loans-To-Deposits Ratio
We are in the business of lending
money and have plenty of liquidity
to meet our customers’ needs.
13.61%
Tier 1 Capital Ratio
Unlike the industry, our Tier 1 capital
ratio remains strong without needing
government assistance.
+58.6%
Noninterest Income Growth
Our noninterest income over the last
five years again outpaced the industry,
demonstrating that our diversified
business model remains effective.
iii
Quality Standards
For more than 100 years, we have been guided by doing what’s
right, not what’s popular and it has served our company well
in all types of economic climates.
Quality People
3,498 associates come to work every day to deliver the
unparalleled customer experience to each other and our customers.
Quality Products
We are nimble enough to provide our customers with the
products they need to help their businesses grow.
Quality Service
Our brand promise, Count on more®, underpins our every action.
Quality Relationships
Most financial services companies say they “know” their
customers, but at UMB the depth of our relationships sets us
apart from the competition.
Quality Balance Sheet
Our balance sheet has grown 54.1 percent in the past five years,
and provides us with the strength and stability to service our
customers’ needs.
Quality Growth
Net income in 2013 reached a record $134 million, or a five-year
CAGR of 6.4 percent.
1
MARINER KEMPER
Chairman &
Chief Executive Officer
Enduring quality
drives success.
Dear Fellow Shareholders,
In reporting strong performance for
UMB in 2013, with double-digit growth
in loans and fee income, we are most
proud of something more enduring:
the quality of who we are as a company.
As a financial services company with
diverse relationships across many
walks of life, we have seen enough
economic and financial cycles to know
a range of diversified quality products
and services, backed by the latest
technologies and very personal attention.
This kind of quality builds strong, long-
term relationships. UMB is recognized
for our stability and integrity by our
customers, the industry and the
capital markets.
The outcome is what you see in UMB’s
that enduring quality is what matters.
financial results: a balance sheet that
So we focus on ensuring that UMB and
gives us the strength to serve customers’
our customers will continue to thrive
needs in any economy, and long-term
over the long haul.
growth in revenue, earnings and market
value to benefit our shareholders.
The pages that follow provide a
thorough report on UMB’s 2013 results,
Looking at the business environment
insights from our leadership team and
for 2014 and beyond, we see potential
detailed financial statements. In this
letter, I would like to comment on the
broader environment and our longer-
term prospects.
challenges in two main areas: economic
cycles and regulatory expansion.
I want to briefly address each of
these—and assure you that UMB is
The future is bright for UMB, and
it’s because we are driven by values
that have sustained this company for
more than a century. Quality, for UMB,
means doing what is right, not what
is popular. It starts with high standards
and committed people, who deliver
prepared to continue to deliver
exceptional performance.
Much as we all desire calm waters,
economic cycles have always been the
norm. In recent years, we experienced
the Great Recession in 2007-08 with
moderate growth since then. The stock
2
market took a dive in late 2007 and
has roared back since early 2009.
Interest rates, after a long decline,
are being held artificially low through
Far from solving that big-bank problem,
since 2008, we have seen less than
a dozen of the largest banks grow
to control fully two-thirds of total U.S.
monetary policy.
banking assets.
When will the economy take a turn?
No one knows, but history teaches
us that these factors do move up and
down—so we can be confident that
change is in our collective future.
We have positioned UMB to endure
economic swings with a solid balance
sheet and extraordinary credit quality
—and to benefit when interest rates
begin to move up.
As for UMB, we are confident our
company will continue to thrive and
grow. Our business model is solid,
and we are tough competitors, in
fact, with great advantages over the
large banks. Our 3,498 associates
are committed to delivering the
unparalleled customer experience.
Our relationships are deep. And we
are well-positioned for the future.
As to the second big challenge, the
saddened by the recent passing of
philosophy of expanding regulatory
my father, R. Crosby Kemper, Jr. His
On a final note, we are all profoundly
intervention is affecting all areas of our
economy—including financial services.
In the last four years, we have increased
our own audit and compliance
departments by 62 percent in total
with additional increases expected
in 2014.
We do believe, however, that policy-
makers in Washington overreacted
following the financial crisis. The
signature “reform,” the Dodd-Frank
Act, so far has spawned more than
9,000 pages of new regulations,
which will take 24 million hours a
year for private enterprise to comply.
Piling on more regulation not only
imposes higher costs of doing
business, which ultimately are passed
on to the consumer, but also has a
counterproductive impact. To see the
failure, you do not have to look further
than Washington’s posturing about
“too big to fail” banks.
tremendous impact on the growth of
UMB, the Kansas City community and
the entire Midwest will be recognized
for generations to come. We will
diligently work to continue his legacy
of supporting the businesses, residents
and communities in which we work
and live. See In Memoriam on page 39.
These enduring values have not only
driven UMB’s success in the past—
they will drive our future success.
Thank you for your loyalty as part
of our quality story at UMB.
Sincerely,
Mariner Kemper
Chairman & Chief Executive Officer
March 1, 2014
3
MARINER KEMPER
Chairman &
Chief Executive Officer
PETER J. DESILVA
President &
Chief Operating Officer
MICHAEL D. HAGEDORN
Vice Chairman,
Chief Financial Officer &
Chief Administrative Officer
4
What does our
future hold?
To answer questions on the minds
of shareholders, we sat down with
maintaining top-tier credit quality, as
always. Total assets grew 13.3 percent.
UMB’s executive management team:
Mariner Kemper, Peter deSilva and
Mike Hagedorn. Excerpts of that
conversation follow:
What is your view of UMB’s 2013
performance—and what can we
expect in 2014?
Mariner: UMB delivered strong growth
in 2013 by sticking to the values that
have guided us through 100 years in
banking and financial services—doing
the right thing for customers. Our
solid growth in 2013 was the result
of consistent execution across UMB’s
businesses, especially our single-
minded focus on delivering what
we call the unparalleled customer
experience. We are very proud of our
UMB associates and the momentum
we have generated. For 2014, we
expect UMB to continue to deliver
growth in both our core banking
and fee-based businesses.
Peter: UMB is reaping the benefits of
longstanding customer relationships
we have built across our businesses.
In 2013, growth initiatives in lending
Fee-based services, including all
UMB asset management businesses,
produced 7.4 percent growth in
noninterest income as total assets
under management grew 27.9 percent
during 2013.
Mike: Our business model as a
diversified financial services company
is paying off in growing revenue and
net income, while managing risk and
stabilizing earnings through the low
end of the interest rate cycle. The
essential points in our time-tested
model are dedication to high-quality
credit, growth of diverse revenue
streams, low-cost funding through
deposits, and commitment to a
strong balance sheet. This model
is working—that is the bottom line.
Fee-based financial services
contributed 59.6 percent of UMB’s
revenue in 2013—a standout in
the industry. How are these
businesses performing?
Mike: Strategically, these fee-based
businesses are especially important
because the revenue streams they
resulted in a 14.7 percent increase in
contribute allow us to maintain high
as-stated loans for UMB Bank, while
standards of credit quality on the
5
Net Interest Income
Millions of Dollars
Noninterest Income
Millions of Dollars
Net Income
Millions of Dollars
Net Interest Income
Millions of Dollars
Net Interest Income
Millions of Dollars
Noninterest Income
Millions of Dollars
Noninterest Income
Millions of Dollars
Net Income
Net Income
Millions of Dollars
Millions of Dollars
$333
$320
$317
$311
$303
$492
$458
$414
$360
$310
$134
$123
$107
$90
$91
$311
$311
$303
$303
$333
$333
$320
$320
$317
$317
$492
$492
$458
$458
$414
$414
$360
$360
$310
$310
$134
$134
$123
$123
$107
$107
$90
$90
$91
$91
09
10
11
12
13
09
10
11
12
13
09
10
11
12
13
09
09
10
10
11
11
12
12
13
13
09
09
10
10
11
11
12
12
13
13
09
09
10
10
11
11
12
12
13
13
350
300
250
200
150
100
50
0
500
400
300
200
100
0
150
150
120
120
90
90
60
60
30
30
0
0
lending side without reaching for
150
350
350
yields. We can also deploy cash flows
300
300
from our fee-based businesses into
120
90
lending, generating higher average
yields and supporting UMB’s ability
to grow.
200
150
200
150
250
250
60
Payment Solutions delivered strong
500
500
growth in credit and debit card purchase
volumes, resulting in a 6.6 percent
increase in interchange revenue.
400
400
UMB Healthcare Services is an area
that we have invested in and feel
300
300
200
200
100
100
strongly about, and we were able to
30
Peter: We were pleased with the
performance of all of our fee-based
businesses in 2013. Our Institutional
50
50
0
0
0
grow our HSA and FSA accounts by
33 percent in 2013. In addition to
100
100
providing fee income, these healthcare
0
0
Investment Management segment
made up of Scout Investments led
the way, achieving very strong net
inflows of more than $5 billion, which
deposits support the lending activities
of the bank as a core funding vehicle.
On balance, we were very pleased
with the performance of all of our
was a record for Scout. The business
fee-based businesses and look for
was buoyed by the success of Scout’s
strong contributions again in 2014.
fixed-income products, including our
unconstrained bond strategy. We are
also pleased the Scout International
Fund, led by Jim Moffett, celebrated
its 20th anniversary with more than
$10 billion under management.
UMB Fund Services, which makes
up our Asset Servicing segment,
provides back office technology
and administrative services to
asset managers. This segment
had a very strong year with good
growth in new business and great
How did UMB Bank achieve strong
loan growth in 2013, and what do
you expect in 2014?
Mariner: We have taken some strategic
steps that produced growth in lending:
• First, we have expanded into high-
quality transactional loan opportunities,
a relatively new area for us, while
adhering to the highest standards
in our underwriting.
customer satisfaction.
• Second, while we are not a big
commercial real estate lender and
6
“The essential points in our time-tested
model are dedication to high-quality
credit, growth of diverse revenue
streams, low-cost funding through
deposits, and commitment to a strong
balance sheet.”
Mike Hagedorn
don’t do speculative deals, we have
at the end of 2013 compared to year-
increased lending on real estate,
end 2008. We are reaping the benefits
with the right parameters in place.
of building solid long-term relationships
• Third, we have built a very strong
and operating from financial strength.
lending team and structured good
incentives to reward them for
bringing in quality business.
Capable, dedicated lenders are
growing the business.
• And, fourth, because our
How do you plan to keep the
momentum in loan growth for
2014 and beyond?
commitment to credit quality
permeates everything we do, our
Mariner: We are in a good position
to continue growing loans. Lending
lending growth is comprised of
long-term relationships. We are
not “reaching” for lower-quality
credits, so the customers we
serve are here for the long haul.
is very competitive, and our value
proposition resonates with customers
because UMB is still committed to
relationship banking. In many of our
As a result, we have been able to
achieve continued loan growth
because of our relationships and
emphasis on credit quality. When
competitors had to pull back during
the financial crisis to fix their loan
problems, the quality of UMB’s
portfolio enabled us to commit to
growth. We continue to outperform
in as-stated loan growth, ranking
in the top 10 percent of banks in
2013 with a 14.7 percent increase. If
you look at a five-year time horizon,
UMB’s loans were 46.9 percent higher
2013 Earnings Growth
9.2%
6.0%
2013 Revenue Growth
7
LEADING THE FINANCIAL SERVICES INDUSTRY
+220.3%
Ten Year Total Return
UMBF Total Return for the years 2003 through 2013 was 220.3 percent.
In that same period, total returns for the S&P 500 Stock Index and the
SNL US Banks Index were +104.3 percent and -6.3 percent, respectively.
Source: SNL Financial
$41.4B
Total Assets Under Management
During the past five years, we have grown total AUM 326.8 percent from
$9.7 billion to $41.4 billion due to our acquisitions, organic growth, market
performance and net flows.
59.6%
Percent Revenue From Fees
With nearly 60 percent of our revenue derived from our fee-based
businesses, we have the flexibility to grow net income in all
rate environments.
8
Total Return
UMBF vs. S&P 500 and S&P Banks Index
$ 200
$ 150
$ 100
$ 50
08
$126
$99
$82
09
$146
$111
$88
10
$149
$86
$80
11
S&P 500 $228
SNL US Banks $159
UMBF
$144
13
$172
$116
$96
12
This summarizes the cumulative return experienced by UMBF shareholders for the years 2008 through 2013,
compared to the S&P 500 Stock Index and the SNL US Banks Index. In all cases, the return assumes a reinvestment
of dividends. Source: SNL Financial
markets, we compete with large
national banks that can’t do
relationship banking and lending the
way we do. We still have officers in
the field, we go on customer visits,
we like to walk the shop floors and
listen, and we build enduring, long-
term relationships. That’s different
from the shorter-term approach our
large competitors take. Our strength
is building time-tested relationships
with customers—and our results
show that it works.
250
200
150
Peter: In addition to long-term
relationships, UMB has a very low
cost of funds, which helps us gain
market share in a competitive lending
market, and our bankers are very
100
50
motivated. Geographically, we have
increased penetration across our
footprint, particularly in metropolitan
areas such as Kansas City, Denver,
St. Louis and Phoenix. In 2013, we
also entered the Dallas market and
launched a division to expand lending
to agribusinesses. So we expect
continued success, going forward,
in growing our high-quality
loan portfolio.
9
In this low interest rate environment,
how should shareholders think about
yields on earning assets? And are you
positioning UMB for an upturn
in interest rates?
Mariner: The monetary authorities
have created an ultra-low rate
environment, and the Federal Reserve
has started its tapering of the asset
purchase program. As a result, rates
have stayed very low since 2008 and
no one knows when they will move up.
Low yields continue to be a tough
issue for all banks. UMB has two
advantages in working to enhance
yields, and they are unique. First, as a
result of rapid growth in deposits, UMB
has about 50 percent of our earning
assets in fixed-income securities.
We have embarked on a rotation of
assets out of securities into high-quality
loans, so the overall yield is increasing
and net interest income margins are
growing. Second, as Peter mentioned,
UMB’s low cost of funds helps us
compete very well in lending.
Mike: As for anticipating the upturn
in interest rates, UMB focuses intently
Nonperforming Loans
Our credit quality metrics continue to outpace the industry.
4%
3%
2%
1%
2.21% Industry
Average
0.47% UMBF
09
10
11
12
13
on risk management. In the history
of banking, there are many examples
plans. The Institutional Investment
Management segment depends to a
when people have said short-term
degree on performance of the markets,
rates are low, there’s no yield, so I’m
and no one knows whether the coming
going to ‘go long’ on the investment
portfolio because that’s where the
yield is—and then rates go up and it’s
year will bring more volatility or a positive
market trend. Scout Investments has
positioned its offering very well for
a bloodbath. We’re not going to do
institutional and individual investors, with
that. In positioning the bank’s balance
diversified products and a disciplined,
sheet for a rise in rates, we are very
sensitive to the assets involved. As
we rotate funds from short-term
securities into loans, we are getting
the longer durations and better yields,
but the credit quality is very good.
Overall, our portfolio has a relatively
neutral position, right in the middle—
not too long so you get caught in the
trap if rates rise fast, and not too
short so you miss out on yields while
long-term focus on total returns. Our
equity and fixed-income managers have
earned the respect of the industry, and
in 2013 assets under management grew
to more than $31 billion. In 2013, we also
grew our international assets under
management. We see global expansion
as a source of growth in both Scout
Investments and UMB Fund Services,
since so much investment activity,
roughly two-thirds of the world’s market
waiting for the cycle to turn.
capitalization, is overseas.
How about growth in non-bank
financial services? What initiatives
are you taking in asset management
Tell us more about the business
model. Why do you focus on revenue
diversity, with so much emphasis
and other businesses?
on fee-based services?
Peter: We are very focused on sales
growth for our non-bank services in
Mariner: UMB is unique. We’re more than
just a bank—we’re a financial services
2014, and each segment has its own
company that owns a good-sized regional
10
“UMB is unique.
We’re more than
just a bank—we’re
a financial services
company that
owns a good-sized
regional bank, an
institutional asset
management
company, a fund
services business,
and a payments
platform.”
Mariner Kemper
2013 Noninterest Income Growth
2013 Net Interest Income Growth
7.4%
4.1%
9.2%
2013 Net Income Growth
40%
60%
60% Noninterest Income
40% Net Interest Income
bank, an institutional asset management
company, a fund services business,
and a payments platform. That
diversification, with nearly 60 percent
of revenue coming from non-bank
services, is key to UMB’s success.
This did not come about by accident—
it’s a core strategy backed by years
of investment and organic growth.
Precisely because UMB’s hallmark is
our commitment to high standards
of asset quality, we have built our
presence in these attractive, fee-based
services to stabilize and balance our
returns throughout the interest rate
cycle. Cash flows from these businesses,
combined with industry-leading low-
cost deposits, enable UMB to remain
the high-quality lender that we always
have been. With diversified sources of
revenue, we operate from a position
of strength.
There are a lot of organizations that
would love to be where we are. Many
banks in our size category are trying
to figure out how we’ve done it—they
would like to emulate it. What they
will figure out is that you can’t create
this overnight. It takes a different way
of thinking about the business than a
11
Total Assets Under Management
Billions of Dollars
Total Assets Under Management
Billions of Dollars
Average Shareholder Equity
Average Shareholder Equity
Millions of Dollars
Millions of Dollars
$41.4
$41.4
$33.1
$33.1
$27.9
$28.0
$27.9
$28.0
$1,337
$1,337
$1,258
$1,258
$1,139
$1,139
$1,067
$1,067
$1,007
$1,007
$12.7
$12.7
09
10
09
11
10
12
11
13
12
13
09
10
09
11
10
12
11
13
12
13
traditional bank manager’s approach,
50
50
along to maintaining a very strong balance
1500
1500
and the business comes from deep
relationships. You can’t go build
Scout Investments and its reputation
40
40
in a short period of time. It is hard to
30
30
sheet. The financial crisis in 2008 proved
the wisdom of safeguarding against
economic and market cycles, because
1200
1200
UMB was able to keep growing while
900
900
build a fund services business, or any
other institutions had to pull back.
20
20
of the other segments. So replicating
UMB’s business model is not easy.
It took this company 100 years to
10
10
be excellent at it.
0
0
600
600
Mike: The goal of the capital raise was to
give UMB the flexibility of a very strong
300
300
position going forward, and the offering
0
0
You issued 4.5 million shares in 2013
and raised $231.4 million in capital.
Why did you decide to raise capital,
and what do you plan to do with
those proceeds?
Mariner: UMB is a growth company—
that’s how we think of ourselves.
Our balance sheet has been growing
for the past decade. Particularly in
recent years, we have achieved strong
growth in loans, and we expect to
continue that.
So this was the impetus for raising
capital. We decided to raise our
capital level to support the growth
we continue to see in UMB’s balance
sheet. We’ve had a commitment all
enabled us to stay in the top half of our
industry in Tier 1 Risk-Based Capital
Ratio. There was no regulatory need—
we raised capital to support our growth,
not to address any issues. Importantly,
our goal was an increase in permanent
capital, in the form of common equity,
which we see as a gold standard. When
investors took a look during the equity
raise in September, the response to our
value proposition was so strong that our
offering was very successful, and this
reinforced the value of UMB’s stock.
2013 Book Value Increase
5.0%
12
“Many banks in our size category are
trying to figure out how we’ve done
it—they would like to emulate it.
What they will figure out is that you
can’t create this overnight.”
Mariner Kemper
Would you talk about the strength of
struck the global financial system in
your balance sheet, and how it sets
2008 taught us the dangers of that
you apart?
Mike: UMB is known as a very well-
capitalized, safe-and-sound financial
approach. UMB stuck to our principles,
and avoided the issues of the crisis.
Even as we grow, we pay close
attention to the asset quality and
institution. Our commitment to a
financial strength that ensure flexibility
strong balance sheet is a core element
for the future. Our balance sheet also
of UMB’s business model. It’s part of
reflects shared values—we’ve found
our DNA. There have been times in
that customers seeking a long-term
economic history when some banks
financial partner, as well as shareholders,
and financial companies placed their
place a high value on the safety built
bets on riskier businesses or growth
into UMB’s approach.
for growth’s sake. The calamity that
Risk-Based Capital Ratios
Risk-Based Capital Ratios
Net Interest Margin
Net Interest Margin
14.43%
14.43%
13.61%
13.61%
3.43
3.43
3.21
3.21
2.94
2.94
2.75
2.75
2.55
2.55
8%
8%
8.41%
8.41%
4%
4%
4%
4%
Tier 1
Leverage
Tier 1
Leverage
Tier 1
Capital
Tier 1
Capital
Total
Risk-based
Total
Risk-based
09
09
10
10
11
11
12
12
13
13
Regulatory Minimum UMB
Regulatory Minimum UMB
13
“Service is personal, so all of our
associates are engaged in the
pursuit of the unparalleled
customer experience. ”
Peter deSilva
As revenue grows dramatically, is
it a challenge to contain expenses
we are providing just a good level of
service, a really great level of service or
for UMB?
Peter: We have grown rapidly
compared to our peers, including
several important acquisitions. As
the organization and revenue grow,
of course, additional costs are a
natural by-product of our continued
growth. However, it goes without
saying that we strive to achieve
operating leverage through managing
an unparalleled level of service. This is
why we survey our customers to measure
how we are doing, to see if we’re making
progress. The unparalleled customer
experience is always aspirational —it’s a
pursuit and something that will never end.
Peter: Listening has a lot to do with
the unparalleled customer experience.
For every customer, an unparalleled
experience is different. So for one, it
expenses and increasing revenue.
is a UMB personal banker remembering
Our approach is flexible: While
managing costs, we also will deploy
resources strategically to take
advantage of opportunities to
accelerate growth and to capture
higher returns. Both sides contribute
to growing net income.
UMB has identified “the unparalleled
customer experience” as a competitive
advantage—what does that mean,
and how do you achieve it?
Mariner: Our vision to create the
unparalleled customer experience
is broader than just a one-time
interaction at the point of sale.
It encompasses the whole process.
Every touchpoint that we have with
a customer affects whether they feel
14
her customer’s name when she comes to
the window. For others, it is user-friendly
mobile technology to help manage
their daily financial lives. We launched a
blog in 2013 (visit http://blog.UMB.com)
to put a human face on UMB—it’s full
of our people sharing financial advice,
perspectives on the economy and
behind-the-scenes views. Service is
personal, so all of our associates are
engaged in the pursuit of the
unparalleled customer experience.
You’ve talked about how important
UMB associates are to success.
What’s your approach to recruiting
and retaining the best people?
Mariner: I particularly value our 3,498
associates. It’s important to me to get
out, visit and know the teams we have
Customer Satisfaction is correlated closely with financial returns.
While slightly softer in 2013, UMB continues to post above-average
customer satisfaction scores in the industry.
$106.5M
$122.7M
$134.0M
Net Income
in Millions
$89.5M
$91.0M
56%
63%
67%
67%
65%
Customer
Satisfaction
09
10
11
12
13
in place. This group of people, both
individually and taken as a whole,
represent UMB’s biggest strategic
advantage. They are our differentiation
passion to delivering our Count on
more brand promise. That’s the key
to great relationships with customers
and, therefore, good business for
from other financial service companies.
many years to come.
What’s more, there is a proven
correlation between the level of
associate satisfaction and the customer
satisfaction a company can deliver—
and, in turn, customer satisfaction
is correlated closely with financial
returns. Our people appreciate that
we have a strong moral compass and
ethical standards that create trust.
We spend time talking with our
associates, measuring what affects
these intangibles of our business,
and figuring out how to maintain and
improve UMB as a great place to work.
Peter: Even as UMB grows larger, we
want to keep the right atmosphere.
We work hard to be responsive to
individual needs, encouraging market
Thank you all for your interest, support
and loyalty.
Sincerely,
Mariner Kemper
Chairman & Chief Executive Officer
Peter J. deSilva
President & Chief Operating Officer
based approaches to different needs
of our operating environments. At
UMB, we are lucky to have some of
Michael D. Hagedorn
Vice Chairman, Chief Financial Officer
& Chief Administrative Officer
the best associates in the industry—
and we’d like to say thank you for
their hard work, dedication and
March 1, 2014
15
Banking
$13.6B
Liquidity in Total Deposits
We remain a highly liquid company, with more than enough capacity
to meet loan demand, which grew 14.7 percent in 2013.
.23%
Quality Assets
We continue to have an industry leading net charge off ratio. In 2013,
it was nearly 19 basis points below the industry average.
Source: SNL Financial, as of December 31, 2013
13.61%
Strong Capital Position
We remain a well capitalized financial services company. Our capital
raise in 2013 allows us the flexibility to invest in growing our businesses.
Funds deposited into UMB Bank are FDIC insured.
Investments are not deposits in UMB Bank, n.a. or any other financial institution and are not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
16
UMB offers a comprehensive suite of commercial,
small business and consumer banking services,
as well as full-service investment and private wealth
management capabilities.
Diverse Revenue Streams
Our business strategies begin by focusing on
the diverse and growing needs of our customers.
Percent of Noninterest Income
54.1% Trust & Securities Processing
17.1% Deposit Service Charges
12.6% Bankcard Fees
4.2% Trading & Investment Banking
3.9% Equity Earnings on Alternative Investments
3.3% Other
2.3% Brokerage Fees
1.7% Gains on Securities Sales
0.8% Insurance Fees
$11.9B
Average Total Deposits
$6.2B
Average Loans
We experienced 13.4 percent
core deposit growth.
Average loans grew
18.5 percent in 2013.
Loan Composition
Deposit Composition
UMB was again named
one of America’s Best
Banks by Forbes for the
fifth straight year.
Data is based on regulatory filings of
public banks and thrifts through the
third quarter of 2013. ©2013, Forbes
Loan Composition
Media LLC. Used with permission.
Deposit Composition
Loan Composition
Deposit Composition
Loan Composition
Deposit Composition
Deposit Composition
Loan Composition
+16.8%
51.0% Commercial & Industrial
51.0% Commercial & Industrial
26.1% Commercial Real Estate
26.1% Commercial Real Estate
8.7% HELOC
Total debit and credit card
8.7% HELOC
6.5% Credit Cards
purchase volume grew
6.5% Credit Cards
4.4% Consumer Real Estate
year-over-year to $6.8 billion.
4.4% Consumer Real Estate
2.3% Real Estate Construction
1.0% Consumer
2.3% Real Estate Construction
1.0% Consumer
51.3% Interest-Bearing Demand
51.3% Interest-Bearing Demand
and Savings Deposits
and Savings Deposits
38.0% Noninterest-Bearing
38.0% Noninterest-Bearing
Demand Deposits
Demand Deposits
10.7% Time Deposits
10.7% Time Deposits
17
51.0% Commercial & Industrial
51.0% Commercial & Industrial
26.1% Commercial Real Estate
26.1% Commercial Real Estate
8.7% HELOC
8.7% HELOC
6.5% Credit Cards
6.5% Credit Cards
4.4% Consumer Real Estate
4.4% Consumer Real Estate
2.3% Real Estate Construction
1.0% Consumer
2.3% Real Estate Construction
1.0% Consumer
51.3% Interest-Bearing Demand
51.3% Interest-Bearing Demand
and Savings Deposits
and Savings Deposits
38.0% Noninterest-Bearing
38.0% Noninterest-Bearing
Demand Deposits
10.7% Time Deposits
Demand Deposits
10.7% Time Deposits
Commercial Banking
Our commercial model is the hallmark of our business, providing both sophisticated
banking solutions and personal attention.
$5.0B
Total Commercial and
Commercial Real Estate
loans in 2013.
Commercial & Industrial
Loans
Billions of Dollars
$3.3
$2.9
$2.2
$2.0
$1.9
$1.1
$4.6
$4.1
$3.5
$2.9
$2.9
09
10
11
12
13
09
10
11
12
13
09
3.5
Commercial Real Estate
Loans
Billions of Dollars
3.0
$4.6
$4.1
$3.5
$2.9
$2.9
$3.3
$2.9
$2.2
$2.0
$1.9
$1.7
$1.4 $1.4
$1.3
2.5
2.0
1.5
$1.1
1.0
0.5
0.0
09
10
11
12
13
09
10
11
12
13
09
10
11
12
13
2.0
1.5
1.0
0.5
0.0
5
4
3
2
1
0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
5
4
3
2
1
0
2.0
1.5
.47%
1.0
Nonperforming loan ratio
versus the industry average
of 2.21 percent.
0.5
Data from SNL Financial as of 2/10/14
0.0
61% Commercial
30% Real Estate - Commercial
4% Consumer - Other
3% Real Estate - Residential
2% Real Estate - Construction
18
$1.7
$1.4 $1.4
Partnering with NorthPoint Development Since 2013
UMB agreed to finance NorthPoint’s first spec building
$1.3
at the 1,000-acre Logistics Park Kansas City adjacent to
the BNSF Railway Co. intermodal facility in Edgerton, KS.
The facility will eventually reach 10 million square feet as
BNSF’s Kansas City container traffic is projected to grow
from approximately 300,000 containers a year to more
than a million containers annually in 20 years.
10
12
11
13
“UMB took the time to understand the project and its potential
for market expansion in Kansas City. After meeting personally
with the UMB leadership team, they got it and wanted to be
a part of this opportunity. It was essential to have a stable
financial partner show commitment from the very beginning.”
Nathaniel Hagedorn
CEO, NorthPoint Development
Commercial
Lender-Originated Loans
$667M
In new line of credit
commitments for 2013.
+22.1%
Increase in average
commercial earning assets.
$11.3B
Corporate Trust Assets
Under Administration
Top 50
U.S. Banks for Farm Lending.
Top 25
U.S. Banks for Automated
Clearing House origination.
Source: ABA
Source: NACHA
$1.26B
Total commercial cardholder
purchase volume.
Billions of Dollars
$1.26
$1.17
$1.04
$.82
$.65
09
10
11
12
13
+8.1%
Commercial card purchase
volume experienced a strong
increase over last year.
UMB Sponsors Local PGA TOUR Professional
$1.4 $1.4
$2.9
$3.3
$1.7
$1.3
$1.1
$1.9
$2.2
$2.0
“UMB has been a long-time supporter of communities
throughout the Midwest, and I couldn’t think of a better
sponsor to represent throughout the tour. From a values
and community involvement standpoint, UMB is exactly
the kind of company you hope takes an interest in your
talent and chooses to show their support for you.”
13
09
10
13
12
11
11
09
12
10
Brice Garnett
Gallatin, MO
UMB Expands
to Dallas
In 2013, UMB opened its
first Dallas Commercial
Banking office. UMB has
served clients in Texas for
the past 30 years.
$4.6B
Total commercial deposits
grew 13.4 percent in 2013.
Billions of Dollars
$4.6
$4.1
$3.5
$2.9
$2.9
09
10
11
12
13
5
4
3
2
1
0
19
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2.0
1.5
1.0
0.5
0.0
Consumer & Small Business Banking
Our wide variety of products and services are customizable for any consumer
or small business need, and we have the scale to continue to help as you grow.
#1
Kansas City market share
leader in deposits for the
third year in a row at
more than 16.5 percent.
#1
First in average account
tenure relative to national
competitors.
Source: FDIC 2013 Market Share Report
Source: Fiserv
#3
Ranked third in overall
lowest account attrition
relative to national
competitors.
Source: Fiserv
80%
80 percent satisfaction
index score for UMB retail
banking, compared to
78 percent for the banking
industry in 2013, according
to a national comparison.
22%
Since 2009, home equity
line commitments have
grown nearly 22 percent.
$566.1M
Home Equity Line of Credit
balances in 2013.
“UMB provided us with very creative and strong business
suggestions that we were able to implement. No other
bank took the time to truly investigate and present to us.
Our relationship has been very positive, and we would
certainly recommend UMB to any business looking for
a true banking partner.”
Mike Mastous
President, Delta Disaster Services of Denver
20
“I have banked with UMB for
almost 10 years and, even
though I am no longer located
near a UMB banking center,
I continue this relationship
because of the customer
service. One of UMB’s
front-line banking professionals
is the best I’ve ever seen in
my 25-year career.”
Scott Roller
UMB Customer
+10%
Mobile banking grew
10 percent and online
banking customers grew
8 percent more than 2012.
$3.7B
Total Consumer and
Small Business Deposits
at the end of 2013.
$161.8M
Small Business loans on
average grew 24 percent.
Private Wealth Management
UMB’s Private Wealth Management team is focused on understanding each client’s personal story.
Our comprehensive solutions in private banking, investment management, trust management
and estate planning are backed by the resources and experience of a multi-billion dollar asset
management firm, ensuring advisors can put the focus where it belongs—on the client.
Your Story. Our Focus.TM
Private Banking
Focuses on You
Let our dedicated Private
Bankers design a plan that
fits your personal credit and
banking needs for today,
and tomorrow.
Investment Management
Services Should Be
Customizable
Employing our suite of
investment products and
solutions, we can tailor a
plan designed to achieve
your unique objectives.
Trust Management
Requires Experience
Managing Risk
Creates Confidence
Discover the confidence that
comes with personalized
trust and custodial services
backed by the experience of
serving clients for more than
a century.
From estate planning
to wealth transfer, our
specialized knowledge
and innovative strategies
can help you protect
what’s most important.
Assets Under Management
by Type
$10.2B
Assets Under Management
Billions of Dollars
Excluding Scout Investments
$10.2B
$2.9B
$7.3B
$8.8B
$2.2B
$6.6B
$7.6B
$2.0B
$5.6B
$6.8B
$1.7B
$5.1B
$4.5B
52.4% Investment Advisory
31.2% Trust
9.5% Charitable
4.2% IRAs
2.7% Other
47.7%
Private Banking Deposits
5-year compound annual
growth rate.
Prairie Capital Management
Private Wealth & Institutional
Asset Management
35.1%
Private Banking Loan
5-year compound annual
growth rate.
Average
Private Banking Deposits
Millions of Dollars
Average
Private Banking Loans
Millions of Dollars
$850
$821
$645
$390
$255
$293
$212
$151
$127
$97
09
10
11
12
13
09
10
11
12
13
21
09
10
11
12
13
08
09
10
11
12
19.0%
Year-over-year increase
in average production
per Financial Advisor.
$2.93B
$1.90B
$2.15B
34.7%
33.0%
20.0%
8.7%
3.6%
$4.41B
47.3%
$3.90B
26.5%
18.2%
3.3%
4.7%
Institutional
Investment
Management
$31.2B
Total Assets Under Management
Scout Investments assets under management continued to grow, ending
2013 at $31.2 billion—$7.7 billion higher than 2012.
$11.3B
International Equity Strategy
The Scout International Equity Strategy reached more than $11 billion
in strategy assets, which include the fund and separate accounts, as of
December 31, 2013.
$5.3B
Total Net Flows
Scout Investments realized total net flows in funds and separate
accounts in excess of $5.3 billion in 2013.
22
Scout Investments, a global asset manager, provides
equity and fixed income strategies to institutional and
individual investors. Our investment teams, supported
by distribution, provide candid market insights and
seek to outperform over market cycles.
To learn more visit ScoutInv.com.
$19.9B
$10.2B
$19.7B
$10.9B
$31.2B
$15.4B
$15.8B
$23.5B
$12.2B
$11.3B
Total Assets Under Management
Billions of Dollars
Reams Fixed Income Strategies
Scout Equity Strategies
Scout Equity Strategies
- International Equity
- International Equity ADR
- Emerging Markets
- Global Equity
- Equity Opportunity
- Mid Cap Equity
- Small Cap Equity
$31.2B
$19.9B
$10.2B
$19.7B
$10.9B
$23.5B
$12.2B
Reams Fixed Income Strategies
$15.4B
- Low Duration
- Intermediate
- Core
- Core Plus
- Long Duration
$15.8B
- Unconstrained
$6.9B
$6.9B
$9.7B
$8.8B
$11.3B
09
10
11
Client Assets by Type
12
13
$6.9B
$9.7B
$8.8B
09
10
11
12
13
Top Contributors to Net
Strategy Flows
$3.7B
Scout Unconstrained Bond
Strategy
$1.5B
34.7%
Scout Mid Cap Equity
Strategy
33.0%
$1.90B
20.0%
8.7%
3.6%
08
Equity
Opportunity
Strategy
$4.41B
47.3%
Top 10%
$3.90B
Scout ranked 48th out of
787 fund companies in
$2.93B
Net Fund Flows during 2013.
$2.15B
Source: Strategic Insight Simfund
26.5%
18.2%
3.3%
4.7%
09
10
11
12
49% Mutual Funds
17% Public
10% Non-Profit / Other
9% Corporate
9% Sub-Advisory
4% Endowment & Foundations
2% Taft-Hartley
Launched the Equity
Opportunity Strategy
in November 2013.
The strategy focuses
on companies that
use leverage in their
capital structure.
23
Celebrated the 20th
anniversary of the Scout
International Fund and
Strategy in September 2013.
Congratulations to the
veteran team, and to Jim
Moffett, lead portfolio
manager for more than two
decades of seasoned insights
and consistent returns.
Payment Solutions
+16.2%
5-Year Compound Annual Growth Rate
Our total purchase volume has shown strong growth from $3.2 billion
in 2008 to $6.8 billion in 2013.
$6.8B
Total Purchase Volume
UMB experienced continued growth in purchase volume as the amount
of total purchase spend on UMB cards increased again in 2013, driven
by Healthcare Services activity.
+31.2%
5-Year Compound Annual Growth Rate
UMB Payment Solutions grew to 1.1 billion in total average annual
deposits in 2013.
24
UMB is pioneering solutions to improve the way our
customers do business. We ensure Commercial, Small
Business, Institutional, Healthcare and Correspondent
Bank customers have the tools to succeed.
Total Purchase Volume
Total purchase volume increased to
$6.79 billion in 2013, continuing the positive
trend from $3.46 billion in 2009.
$4.28B
$3.46B
Healthcare
Retail Debit
Commercial Credit
Retail Credit
Private Label Credit
Other
27.1%
35.9%
19.1%
11.1%
3.5%
3.2%
$6.79B
43.6%
$5.81B
$5.22B
$6.01
34.7%
$5.39
31.9%
21.5%
28.0%
$4.28
$3.20
27.1%
35.9%
13
19.1%
11.1%
3.5%
3.3%
20.6%
39.4%
19.5%
11.8%
5.1%
3.6%
$3.43
18.6%
11.8%
2.0%
2.6%
30.1%
19.3%
16.4%
3.1%
3.1%
26.3%
19.2%
14.4%
2.8%
5.4%
09
10
11
12
Health Savings Account
Deposits & Assets
Millions of Dollars
$642
$431
$323
$280
$191
09
10
11
12
13
700
800
“My client was a little
hesitant to switch to a new
HSA administrator since
it can be an administrative
nightmare. However,
Heather Harte and UMB
made it so easy. Heather is
phenomenal! She helped
our client every step of
the way—from day one to
implementation. My client
is happy they made the
change to UMB. I would
recommend UMB over
any other bank out there.”
600
500
400
100
300
200
0
Mercy Ibarra
Senior Account Executive
MJ Insurance, Inc.
$3.0B
Total card spending
for all Health Savings
Accounts and Flexible
$1.04
Spending Arrangements.
$1.26
$1.17
$.82
$.65
09
10
11
4.2M
12
13
Healthcare spending
account cards (includes
single use cards).
#27
27th largest issuer of
Commercial Cards.
Source: Nilson 2013
$22B
Acting as Program
Administrator, UMB’s
FDIC Sweep Program hit
a record high of more
than $22 billion in 2013.
25
1.5
1.2
0.9
0.6
0.3
0.0
08
09
10
11
12
Number of HSA and
FSA Accounts
In Millions
4.17
$6.01
$5.39
8.4%
3.14
2.47
1.81
1.34
$4.28
$3.43
3.1%
28.0%
30.1%
3.1%
19.3%
16.4%
5.4%
31.9%
26.3%
2.8%
19.2%
14.4%
$3.20
3.6%
20.6%
39.4%
5.1%
19.5%
11.8%
3.3%
27.1%
35.9%
3.5%
19.1%
11.1%
09
10
11
12
13
08
09
10
11
12
$6.79
43.6%
$5.81
$5.22
$4.28
$3.43
20.6%
39.4%
19.5%
11.8%
5.1%
3.2%
09
10
11
12
13
21.5%
18.6%
11.8%
2.0%
2.6%
6.5M
Commercial Credit
Card Transactions
22.0%
19.4%
13.3%
2.2%
8.4%
34.7%
22.0%
2.2%
19.4%
13.3%
Asset Servicing
+23%
Assets Under Administration
Total assets under administration grew from $156.0 billion to $191.0 billion
in 2013.
$6.39B
Investment Managers Series Trust Assets
Assets in the Investment Managers Series Trusts grew 90.2 percent, from
$3.36 billion to $6.39 billion as of December 31, 2013. The Investment
Managers Series Trust II was launched in 2013, due to the success of
the original Investment Managers Series Trust.
+48%
Fund Accounting/Administration
Assets Serviced
48 percent increase in mutual fund accounting/administration
assets serviced.
26
UMB Fund Services (UMBFS) offers a broad suite of
administrative services for mutual funds and alternative
investments such as hedge funds, as well as turnkey
solutions such as series trust and collective trust services.
$162.4B
$179.3B
$191.0B
Total Assets Under Administration
Includes fund clients receiving custody services
from UMB Bank, n.a.
$206.4B
$191.0B
$156.0B
09
10
11
12
13
$206.4
$191.1
$179.3
$162.4
$155.8
09
10
11
12
13
Mutual Fund Services
- Fund Accounting / Administration
- Transfer Agency
- Distribution Services 1
- Custody 2
- Cash Management 2
Alternative Investment Services
- Financial Statements
- Performance Reporting
- Tax Preparation & Compliance
- Audit Coordination
- Offshore Fund Services
- Regulatory Administration
- Custody 2
1 Services provided by
UMB Distribution Services, LLC
2 Services provided by UMB Bank, n.a.
Investment Managers
Series Trust Assets
Billions of Dollars
$6.4
$3.4
$1.6
$.72
$.33
09
10
11
12
13
Through the Investment
Managers Series Trusts,
UMB Fund Services helped
clients launch 17 new
mutual funds in 2013.
8
7
6
5
4
3
2
1
0
47.3%
26.5%
18.2%
3.3%
4.7%
“Highly
Commended”
Our alternative investments
division was Highly
Commended at the 2013
HFMWeek Awards as a
top administrator under
$2.15B
$30 billion for funds of
hedge funds.
$1.90B
34.7%
$4.41B
+20%
$3.90B
$2.93B
Transfer Agency revenue
increased 20 percent in 2013.
33.0%
20.0%
8.7%
3.6%
08
09
10
11
12
200+
UMBFS is currently serving
more than 200 client firms.
Includes fund clients receiving custody
services from UMB Bank, n.a.
“Top Ten”
UMBFS was named a
“Top Ten Workplace”
for the fourth straight
year by the Milwaukee
Journal Sentinel.
27
SELECTED FINANCIAL HIGHLIGHTS
Dividends Declared Per Share
Dividends Declared Per Share
Dollars
Dollars
$.79
$.79
$.75
$.75
$.71
$.71
Return On Average Assets
Return On Average Assets
Return On Average Equity
Return On Average Equity
Diluted Earnings Per Share
Diluted Earnings Per Share
Dollars
Dollars
.89%
.92%
.89%
.86%
.92%
.89%
.89%
.86%
.82%
.82%
8.9%
9.4%
9.8%
8.9%
10.0%
9.4%
10.0%
9.8%
$3.20
$3.20
$3.04
$3.04
$.87
$.87
$.83
$.83
8.5%
8.5%
$2.64
$2.64
$2.26
$2.20
$2.26
$2.20
09
10
11
09
12
10
13
11
12
13
09
10
11
09
12
10
13
11
12
13
09
10
11
09
12
10
13
11
12
13
09
10
11
09
12
10
13
11
12
13
Return On Average Assets
Return On Average Assets
Return On Average Equity
Return On Average Equity
Diluted Earnings Per Share
Diluted Earnings Per Share
Dollars
Dollars
Dividends Declared Per Share
Dollars
Dividends Declared Per Share
Dollars
2.5
8
8
1.0
1.0
0.8
0.8
12
10
12
10
3.5
3.0
.89%
.92%
.89%
.86%
.89%
.86%
.92%
.89%
.82%
.82%
8.9%
9.4%
9.8%
8.9%
10.0%
9.4%
10.0%
9.8%
0.6
0.6
$3.20
$3.20
$3.04
$3.04
8.5%
8.5%
$2.64
$2.64
0.4
0.4
$2.26
$2.20
$2.26
$2.20
0.2
0.2
0.0
0.0
$.87
$.87
2.0
$.83
$.83
6
$.71
$.79
6
$.79
$.75
$.75
$.71
4
2
0
4
2
0
1.5
1.0
0.5
0.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
1.0
1.0
0.8
0.8
0.6
0.6
0.4
0.4
0.2
0.2
0.0
0.0
09
10
11
09
12
10
13
11
12
13
09
10
11
09
12
10
13
11
12
13
09
10
11
09
12
10
13
11
12
13
09
10
11
09
12
10
13
11
12
13
1.0
1.0
0.8
0.8
28
1.0
1.0
0.8
0.8
12
10
8
6
4
2
0
12
10
8
6
4
2
0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
0.6
0.6
0.6
0.6
0.4
0.4
0.4
0.4
0.2
0.2
0.2
0.2
0.0
0.0
0.0
0.0
FIVE-YEAR FINANCIAL SUMMARY
Dollars In Thousands Except Per Share Data
Earnings
Interest income
Interest expense
Net interest income
Provision for loan losses
Noninterest income
Noninterest expense
Net income
Average Balances
Assets
Loans, net of unearned interest
Securities
Interest-bearing due from banks
Deposits
Long-term debt
Shareholders’ equity
Year-End Balances
Assets
Loans, net of unearned interest
Securities
Interest-bearing due from banks
Deposits
Long-term debt
Shareholders’ equity
Nonperforming loans
Allowance for loan losses
Per Share Data
Earnings - basic
Earnings - diluted
Cash dividends
Dividend payout ratio
Book value
Market price
High
Low
Close
Ratios
Return on average assets
Return on average equity
As a % of loans:
Allowance for loan losses
Nonperforming loans
Risk-based capital ratio:
Tier 1
Total
Average equity to average assets
$
2013
348,341
15,072
333,269
17,500
491,833
624,178
133,965
15,030,762
6,221,318
7,034,542
663,818
11,930,318
4,748
1,337,107
16,911,852
6,521,869
7,051,127
2,093,467
13,640,766
5,055
1,506,065
30,706
74,751
$
$
3.25
3.20
0.87
26.77 %
33.30
65.44
43.27
64.28
0.89 %
10.02
1.15
0.47
13.61
14.43
8.90
Please refer to 10-K filing for additional information.
2012
2011
2010
$ 339,685
19,629
320,056
17,500
458,122
590,454
122,717
$ 343,653
26,680
316,973
22,200
414,332
562,746
106,472
$ 346,507
35,894
310,613
31,510
360,370
512,622
91,002
$
2009
356,217
53,232
302,985
32,100
310,176
460,585
89,484
13,389,192
5,251,278
6,528,523
547,817
10,521,658
5,879
1,258,284
14,927,196
5,690,626
7,134,316
720,500
11,653,365
5,879
1,279,345
28,103
71,426
12,417,274
4,756,165
5,774,217
837,807
9,593,638
11,284
1,138,625
13,541,398
4,970,558
6,277,482
1,164,007
10,169,911
6,529
1,191,132
25,581
72,017
11,108,233
4,490,587
5,073,839
593,518
8,451,966
19,141
1,066,872
12,404,932
4,598,097
5,742,104
848,598
9,028,741
8,884
1,060,860
25,142
73,952
10,110,655
4,383,551
4,382,179
492,915
7,584,025
32,067
1,006,591
11,663,355
4,332,228
5,003,720
1,057,195
8,534,488
25,458
1,015,551
23,263
64,139
$
$
3.07
3.04
0.83
27.04 %
31.71
$
$
2.66
2.64
0.79
29.70 %
29.46
$
$
2.27
2.26
0.75
33.04 %
26.24
$
$
52.61
37.68
43.82
45.20
30.49
37.25
44.51
31.88
41.44
2.22
2.20
0.71
31.98 %
25.11
49.75
33.65
39.35
0.92 %
9.75
0.86 %
9.35
0.82 %
8.53
0.89 %
8.89
1.26
0.49
11.05
11.92
9.40
1.45
0.52
11.20
12.20
9.17
1.61
0.55
11.30
12.45
9.60
1.49
0.54
13.11
14.18
9.96
29
CONSOLIDATED BALANCE SHEETS
Dollars in Thousands Except Per Share Data
December 31,
December 31,
Assets
Loans
Allowance for loan losses
Net loans
Loans held for sale
Investment securities:
Available for sale
Held to maturity (market value of $231,510 and $129,495 respectively)
Trading securities
Federal Reserve Bank stock and other
Total investment securities
Federal funds sold and securities purchased under agreements to resell
Interest-bearing due from banks
Cash and due from banks
Bank premises and equipment, net
Accrued income
Goodwill
Other intangibles
Other assets
Total assets
Liabilities
Deposits:
Noninterest-bearing demand
Interest-bearing demand and savings
Time deposits under $100,000
Time deposits of $100,000 or more
Total deposits
Federal funds purchased and repurchase agreements
Short-term debt
Long-term debt
Accrued expenses and taxes
Other liabilities
Total liabilities
Shareholders’ Equity
$
2013
6,520,512
(74,751)
6,445,761
1,357
6,762,411
209,770
28,464
50,482
7,051,127
87,018
2,093,467
521,001
249,689
78,216
209,758
55,585
118,873
2012
$
5,686,749
(71,426)
5,615,323
3,877
6,937,463
114,756
55,764
26,333
7,134,316
89,868
720,500
667,774
244,600
69,749
209,758
68,803
102,628
$
16,911,852
$
14,927,196
$
$
5,189,998
7,001,126
491,792
957,850
13,640,766
1,583,218
107
5,055
153,450
23,191
4,920,581
5,450,450
540,269
742,065
11,653,365
1,787,270
-
5,879
182,468
18,869
15,405,787
13,647,851
Common stock, $1.00 par value; 80,000,000 shares authorized, 55,056,730 shares
issued and 45,221,237 and 40,340,878 shares outstanding, respectively.
Capital surplus
Retained earnings
Accumulated other comprehensive income
Treasury stock, 9,835,493 and 14,715,852 shares, at cost, respectively
Total shareholders' equity
55,057
882,407
884,630
(32,640)
(283,389)
1,506,065
55,057
732,069
787,015
85,588
(380,384)
1,279,345
Total liabilities and shareholders' equity
$ 16,911,852
$ 14,927,196
Please refer to 10-K filing for additional information.
30
CONSOLIDATED STATEMENT OF INCOME
Dollars in Thousands Except Per Share and Share Data
Years Ended December 31,
Interest Income
Loans
Securities:
Available for sale - taxable interest
Available for sale - tax-exempt interest
Held to maturity - tax-exempt interest
Total securities income
Federal funds and resell agreements
Interest-bearing due from banks
Trading securities
Total interest income
Interest Expense
Deposits
Federal funds and repurchase agreements
Other
Total interest expense
Net interest income
Provision for loan losses
Net interest income after provision for loan losses
Noninterest Income
Trust and securities processing
Trading and investment banking
Service charges on deposit accounts
Insurance fees and commissions
Brokerage fees
Bankcard fees
Gains on sales of securities available for sale
Equity earnings on alternative investments
Other
Total noninterest income
Noninterest Expense
Salaries and employee benefits
Occupancy, net
Equipment
Supplies and services
Marketing and business development
Processing fees
Legal and consulting
Bankcard
Amortization of other intangible assets
Regulatory fees
Class action litigation settlement
Other
Total noninterest expense
Income before income taxes
Income tax expense
Net Income
Per Share Data
Net income - basic
Net income - diluted
Dividends
Weighted average shares outstanding
Please refer to 10-K filing for additional information.
2013
2012
2011
$
229,665
$
217,391
$
219,076
75,202
37,113
3,286
115,601
193
1,918
964
81,013
35,960
2,264
119,237
121
1,789
1,147
85,120
33,079
1,687
119,886
102
3,284
1,305
348,341
339,685
343,653
13,183
1,739
150
15,072
333,269
17,500
315,769
265,948
20,641
84,133
3,727
11,470
62,031
8,542
19,048
16,293
491,833
339,691
39,291
49,207
20,387
22,703
57,791
18,703
18,381
13,218
9,129
-
35,677
624,178
183,424
49,459
133,965
3.25
3.20
0.87
41,275,839
17,416
1,884
329
19,629
320,056
17,500
302,556
225,094
30,359
78,694
4,095
11,105
60,567
20,232
422
27,554
458,122
319,852
37,927
43,465
21,045
24,604
51,191
17,980
18,154
14,775
9,447
-
32,014
590,454
170,224
47,507
122,717
3.07
3.04
0.83
40,034,428
$
$
24,628
1,712
340
26,680
316,973
22,200
294,773
208,392
27,720
74,659
4,375
9,950
59,767
16,125
3
13,341
414,332
294,756
38,406
42,728
22,166
20,150
49,985
15,601
15,600
16,100
10,395
7,800
29,059
562,746
146,359
39,887
106,472
2.66
2.64
0.79
40,034,435
$
$
$
$
31
EXECUTIVE LEADERSHIP
As of December 31, 2013
Dana Abraham
President,
Private Wealth Management
Craig Anderson
President,
Commercial Banking
Jim Cornelius
President,
Institutional Banking
& Investor Services
Peter deSilva
President & Chief Operating Officer
Todd Duncan
President,
Institutional Asset Management
Mike Hagedorn
Vice Chairman, Chief Financial Officer,
& Chief Administrative Officer
Darren Herrmann
Senior Vice President,
Treasurer
Daryl Hunt
Executive Vice President,
Operations & Technology Group
Andy Iseman
Chief Executive Officer,
Scout Investments
Brian Kaufman
Managing Director,
Prairie Capital Management
Mariner Kemper
Chairman & Chief Executive Officer
David Kling
Executive Vice President,
Chief Risk Officer
Heather Miller
Executive Vice President,
Sales, Marketing & Communication
Christine Pierson
Executive Vice President,
Consumer Services
Dennis Rilinger
Executive Vice President,
General Counsel
Jim Sangster
Vice Chairman,
UMB Bank, n.a.
Larry Smith
Executive Vice President,
Organizational Effectiveness
& Chief Human Resources Officer
Scott Stengel
Senior Vice President,
Deputy General Counsel
Chris Swett
Executive Vice President,
Chief Credit Officer
Tom Terry
Chief Lending Officer
Dennis Triplett
Chief Executive Officer,
UMB Healthcare Services
Brian Walker
Chief Accounting Officer
Clyde Wendel
Vice Chairman,
UMB Bank, n.a.
John Zader
Chief Executive Officer,
UMB Fund Services
32
BOARD OF DIRECTORS & ADVISORY BOARDS
As of December 31, 2013
UMB Financial Corporation
Paul D. Bartlett, Jr. 1
Chairman of the Board
Bartlett and Company
Warner L. Baxter
President and CEO
Ameren Missouri
Thomas E. Beal 1
President
Beal Properties, Inc.
David R. Bradley, Jr. 4
President, Publisher & Editor
Publisher and Editor
News-Press and Gazette Company
Nancy K. Buese 5
Senior Vice President and CFO
MarkWest Energy Partners, LP
Peter J. deSilva 2
President
UMB Bank, n.a.
President and COO
UMB Financial Corporation
Terrence P. Dunn 3
CEO & President
J.E. Dunn Construction Group, Inc.
K.C. Gallagher 5
Vice Chairman
Gallagher Industries, Inc.
Chief Executive Officer
Little Pub Holdings, LLC
Peter J. Genovese 1
Vice Chairman
UMB Financial Corporation
Gregory M. Graves 4
Chairman, CEO and President
Burns and McDonnell
Engineering Company, Inc.
Michael D. Hagedorn 1,2
Vice Chairman
Chief Financial Officer
Chief Administrative Officer
UMB Financial Corporation
Alexander C. Kemper
Chairman & CEO
C2FO
Chairman
The Collectors Fund
Mariner Kemper 2
Chairman & CEO
UMB Bank, n.a.
Chairman & CEO
UMB Financial Corporation
R. Crosby Kemper 1, 6
Chairman Emeritus
UMB Financial Corporation
Richard F. Jones
President and CEO
Fidelity Security Life Insurance Co.
Kris A. Robbins 5, 4
Principal
KARobbins, LLC
Thomas D. Sanders 4
Consultant to Senior Management
MMC Corporation
L. Joshua Sosland 3
Vice President
Sosland Companies, Inc.
Paul Uhlmann III 3
President
The Uhlmann Company
Thomas J. Wood III 3
General Partner
Wood Family Partnerships
UMB Bank, n.a.
Craig L. Anderson
President
Commercial Banking
UMB Financial Corporation
Alexander C. Kemper
Chairman & CEO
C2FO
Chairman
The Collectors Fund
Mariner Kemper
Chairman & CEO
UMB Bank, n.a.
Chairman & CEO
UMB Financial Corporation
R. Crosby Kemper 1, 6
Chairman Emeritus
UMB Financial Corporation
Greg S. Maday
Chief Executive Officer
SpecChem, LLC
Patrick J. McCown
Chief Executive Officer
McCown Gordon Construction
Jonathan D. Mize
President and COO
Blish-Mize Company
Don R. Armacost, Jr.
President and CEO
Peterson Manufacturing Company
Timothy R. Murphy
President and CEO
Murphy-Hoffman Company
David F. Ball
President and CEO
Ball’s Price Chopper
& Hen House Markets
Steven J. Bresky
President and CEO
Seaboard Corporation
Peter J. deSilva
President
UMB Bank, n.a.
President and COO
UMB Financial Corporation
Jerry L. Garland
President and CEO
Associated Wholesale Grocers, Inc.
Peter J. Genovese 1
Vice Chairman
UMB Financial Corporation
Jeffrey B. Hanes
Investor
Marilyn B. Hebenstreit
Vice Chairman
Bartlett and Company
Chairman
Linda Hall Library
H. Tyler Nottberg
Chief Executive Officer
US Engineering
Douglas F. Page 1
Executive Vice President
UMB Bank, n.a.
Stephen R. Plaster
Evergreen Investments, LLC
James D. Rine 1
President Kansas City Region
UMB Bank, n.a.
Dave G. Ruf 1
Ruf Enterprises
James A. Sangster
Vice Chairman
UMB Bank, n.a.
Christian R. Swett 1
Executive Vice President &
Chief Credit Officer
UMB Financial Corporation
H. Stephen Talge 1
President
Dazey Corporation
Thomas S. Terry 1
Executive Vice President &
Chief Lending Officer
UMB Bank, n.a.
William D. Wagner
Wagner Investments, LP
Clyde F. Wendel
Executive Vice President
Institutional Asset Management
Vice Chairman
UMB Bank, n.a.
UMB Advisory Boards
Kansas City Region
Kansas
Rick S. Bennett
Senior Vice President
Consumer Services
UMB Bank, n.a.
Terry A. Calaway
Retired President
Johnson County Community College
Patrick J. Crilly
President
Commercial Claims, Inc.
Justin D. Hill
President
The Lawrence Paper Company
R. Crosby Kemper 6
Chairman Emeritus
UMB Financial Corporation
Donald G. Laffoon
President and CEO
Electrical Corporation of America
Steve J. McDonald
President
Geiger Ready Mix
Leo J. Nunnink
Community Bank President
Johnson/Wyandotte Counties
UMB Bank, n.a.
Richard S. O’Neill
Chairman of the Board
O’Neill Automotive, Inc.
Richard S. O’Neill, Jr.
President
O’Neill Automotive, Inc.
Ronald D. Petering
President
Shafer, Kline & Warren, Inc.
1Advisory Director 2Executive Committee 3Governance Committee 4Compensation Committee 5Audit Committee 6Deceased
33
James D. Rine
President
Kansas City Region
UMB Bank, n.a.
James A. Sangster
Vice Chairman
UMB Bank, n.a.
Dave W. Scheer
President and CEO
Inland Truck Parts Company
Frank L. Thompson
President
Overland Park Jeep, Inc.
David E. Willson
President
Camp David, Inc.
Richard L. Wiseman
Owner
Porter Funeral Homes & Crematory
Metro
Dan E. Axtell
President
Lexington Plumbing & Heating, Inc.
R. Philip Bixby
President and CEO
Kansas City Life Insurance Co.
Thomas E. Brusnahan
Community Bank President
UMB Bank, n.a.
Peter J. deSilva
President
UMB Bank, n.a.
President and COO
UMB Financial Corporation
Brian M. Hutchin
Community Bank President
UMB Bank, n.a.
Alexander C. Kemper
Chairman & CEO
C2FO
Chairman
The Collectors Fund
Mariner Kemper
Chairman & CEO
UMB Bank, n.a.
Chairman & CEO
UMB Financial Corporation
R. Crosby Kemper 6
Chairman Emeritus
UMB Financial Corporation
ADVISORY BOARDS
Jonathan Lambert
President
Pacific Mutual Door Company
Todd E. Bleakley
Manager
Bleakley Development Company, LLC
Catherine Tivol Maslan
Chief Executive Officer
Tivol Plaza, Inc
Jeanette E. Prenger
President/Owner
ECCO Select
Russell D. Redburn
Chairman and CEO
Central Power Systems & Services
Randall C. Reed
President
Randy Reed Automotive, Inc.
James D. Rine
President
Kansas City Region
UMB Bank, n.a.
John Russ
Community Bank President
UMB Bank, n.a.
James A. Sangster
Vice Chairman
UMB Bank, n.a.
Phillip (Flip) Short
President
Signature DNA
R. Bradley Speaks
President
Speaks Legacy Chapel
Timothy L. Vance
President
Vance Brothers, Inc.
Kent H. Vipond
President and CEO
CDM Investment Group
William S. Walker
President
The G.W. Van Keppel Company
Jeffrey D. Yowell
President and CEO
DATACORE Marketing, LLC
South
Ray Adams
Chairman
Adams Automotive Group
Don R. Armacost, Jr.
President and CEO
Peterson Manufacturing Company
Trey Bowen
Vice President
Superior Bowen Asphalt, LLC
James M. Brosnahan
Senior Vice President
Senior Loan Officer
UMB Bank, n.a.
Kevin F. Clune
President
Clune and Company, LC
Terry Crabtree
Retired
Peter J. deSilva
President
UMB Bank, n.a.
President and COO
UMB Financial Corporation
E. Frank Ellis
Chairman and CEO
Swope Community Enterprises
Steven A. Erickson
Community Bank President
UMB Bank, n.a.
Jonathan L. Freiden
Co-Chief Executive Officer
US Toy Company
James S. Gutschow
Chief Financial Officer
John A. Marshall Company
Edwin J. Holland
President
Food Service Division
Treat America Food Services
Michael Hoehn
President and COO
Automatic Systems, Inc.
(LICO Steel, Inc.)
Mariner Kemper
Chairman & CEO
UMB Bank, n.a.
Chairman & CEO
UMB Financial Corporation
R. Crosby Kemper 6
Chairman Emeritus
UMB Financial Corporation
David T. Raden
President
Tucker Midwest, Inc.
34
James D. Rine
President
Kansas City Region
UMB Bank, n.a.
John E. Robertson
President
RMF Steel
Thomas D. Sanders
Consultant to Senior Management
MMC Corporation
James A. Sangster
Vice Chairman
UMB Bank, n.a.
Miles E. Schnaer
President
Crown Automotive Organization
St. Joseph, Missouri
Brian Bradley
President
News-Press and Gazette Company
James P. Clayton
President
Clayton Paper & Distribution, Inc.
David W. Cripe
Community Bank President
UMB Bank, n.a.
James T. Graves
Retired of Counsel
Scopelitis, Garvin, Light, Hanson &
Feary, PC
Edward Lawrence Hausman
Retired President
Al J. Mueller Construction Company
Kevin P. Lilly
President and CEO
St. Joseph Beverage, LLC
Robert S. Meyers
Retired
James D. Rine
President
Kansas City Region
UMB Bank, n.a.
Harry A. Roberts
HAR Business Development
Consulting LLC
Mary Carol Roever
Retired Interim Dean
Craig School of Business
Missouri Western State University
James A. Sangster
Vice Chairman
UMB Bank, n.a.
Kevin W. Speltz
President
Clipper Distributing Company, LLC
Western Regions
Arizona Region
Craig L. Anderson
President
Commercial Banking
UMB Financial Corporation
Ricardo DeAvila
Managing Director
Alerion Capital Group LLC
Peter J. Genovese
Vice Chairman
UMB Financial Corporation
Frank Phillips Giltner III
Senior Vice President
Shamrock Foods Company
Brian M. Goodwin
Goodwin Consult LLC
Mariner Kemper
Chairman & CEO
UMB Bank, n.a.
Chairman & CEO
UMB Financial Corporation
K. David Lindner
Partner
Squire, Sanders & Dempsey, LLP
Mark C. Loftin
President
Loftin Equipment Company
& Bay City Electric Works
James S. Patterson
Chairman & CEO
Arizona Region
UMB Bank, n.a.
William Riley
Chief Executive Officer
Thermo King West
Richard Trueblood
Chief Financial Officer
Advent Solar
Colorado Region
Sue Allon
Vice Chairman
Stewart Lender Services
ADVISORY BOARDS
Craig L. Anderson
President
Commercial Banking
UMB Financial Corporation
Buck Blessing
Chief Executive Officer
Griffis/Blessing, Inc.
Kevin V. Duncan
Executive Vice President
Duncan Oil, Inc.
K.C. Gallagher
Vice Chairman
Gallagher Industries, LLC
Chief Executive Officer
Little Pub Holdings, LLC
R. Thayer Tutt, Jr.
President and CIO
El Pomar Foundation
Ned C. Voth
President
Jordan’s Building Center
Midwest Regions
Greater Missouri Region
Boonville, Missouri
Larry E. Grissum
Partner/Owner
Grissum Farms, Inc.
Steve Hamline
President – West Region
J.E. Dunn Construction Company
Kenneth Huth
Partner
Huth Farms, LLC
Robert G. Jaster
Mariner Kemper
Chairman & CEO
UMB Bank, n.a.
Chairman & CEO
UMB Financial Corporation
R. Crosby Kemper 6
Chairman Emeritus
UMB Financial Corporation
Roger Knoph
Chief Executive Officer
EnviroTech Services, Inc.
Steve Lockton
Executive Vice President
Lockton Companies, LLC
Peter J. Neidecker
Executive Vice President
Mountainside Medical, LLC
Thomas R. O’Donnell
Managing Partner
Holland & Hart
Michael L. Raisch
President
Nuvola Solutions, Inc.
Dean P. Pisciotta
President
Brakes Plus, Inc.
Rose M. Robeson
Senior Vice President & CFO
DCP Midstream Partners
Jon M. Robinson
Chairman & CEO
Colorado Region
UMB Bank, n.a.
Marty L. James
President North Central
Missouri Region
UMB Bank, n.a.
Gill Jewett
Retired Accountant and Farmer
Gill Jewett Tax Service
Charles P. Malone
Retired
Certified Public Accountant
Megan B. McGuire
Attorney
City of Boonville
Lewis W. Miller
Retired
Harold W. Schnetzler
Retired
Past Owner Schnetzler
IGA Grocery
Todd B. Snapp
President
Snapp Hardware, Inc.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
Carthage, Missouri
Ann Marie Baker
President
Southwest Missouri Region
UMB Bank, n.a.
Edgar B. Freund, CLU, CHFC
Agent
State Farm Insurance Company
35
Mark R. Gier
Chief Financial Officer
ICS Logistics LLC
William E. Michel
Retired Veterinarian
E. Elliott Potter
General Partner
Potter Family Limited Partnership
Peter Richardson
Dr. Peter Richardson & Associates
David G. Sanders
Retired Grain Dealer
Janet K. Stafford
Community Bank President
UMB Bank, n.a.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
Columbia, Missouri
Charles P. Bondurant V, MD
Physicians Resources, Inc.
Susan L. Horak
Owner/Broker
RE Max Boone Realty
Robert A. Hurdle
Stephen C. Knorr
Vice President
Government Relations
University of Missouri
Tony Mayfield
President
Central Missouri Region
UMB Bank, n.a.
Jeffrey W. Parker, MD
Columbia Orthopaedic Group
George Pfenenger
Chief Executive Officer
Socket Telecom
Trent Stober, P.E.
Vice President
HDR Engineering Inc.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
Kurt Wallace
President/Owner
Wallace Architects
Ft. Scott, Kansas
Cynthia J. Bowman
Community Bank President
UMB Bank, n.a.
J. Frank Halsey
President
Mid-Continental Restoration
Marty L. James
President
North Central Missouri Region
UMB Bank, n.a.
Debra K. McKenney
Co-Owner
Fort Scott Broadcasting
CP Communications
David R. Shepherd
President
Shepherd Team Auto Plaza
Gary A. Palmer
Owner
Captured Images
Director of Development
Fort Scott Community College
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
Jefferson City, Missouri
Carrie O. Carroll
Owner/Manager
Carrie’s Hallmark Shop
William A. Crede
Partner & CEO
America Building Products
James M. Cunningham III
Community Bank President
UMB Bank, n.a.
F. Joe Delong III
President
Delong’s, Inc.
Sherry L. Doctorian
Partner
Armstrong Teasdale LLP
Robert L. Hawkins, Jr.
Retired Lawyer
Tony Mayfield
President
Central Missouri Region
UMB Bank, n.a
Bryan M. Pope, DDS
Retired Dentist
ADVISORY BOARDS
Larry V. Schepers
Retired
UMB Bank, n.a.
Rod Smith
Sports Director
KRCG TV 13
Jason E. Thompson
President/General Manager
Harold G. Butzer, Inc.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
Joplin, Missouri
Ann Marie Baker
President
Southwest Missouri Region
UMB Bank, n.a.
Rick Brown
Dealer
Roper Honda
Robert W. Heiniger, Jr.
President
CES, Inc.
Eric A. Reisinger
Community Bank President
UMB Bank, n.a.
Hal D. Roper
President
Roper GMC - Buick, Inc.
Randy Roper
Vice President
Roper GMC - Buick, Inc.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
Monett, Missouri
Ann Marie Baker
President
Southwest Missouri Region
UMB Bank, n.a.
Lisa Balmas
Community Bank President
UMB Bank, n.a.
Melissa A. Beckwith
Investments
The Honorable Michael D. Garrett
Municipal Judge
City of Monett
Steven R. Kay
Vice President
Kay Concrete Materials Company
William H. Medlin
Retired
Howard F. Randall
President
General Investments, Inc.
Michael A. Scabarozi
Vice President
International Dehydrated Foods, Inc.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a
Northeast
Charles Bindemann
Retired
Guy E. Callison
Owner
Swine Assurance Productions, Inc.
J. Cecil Fisher
Owner
Fisher Farms
Robert L. Hawkins, Jr.
Retired Lawyer
Marty L. James
President
North Central Missouri Region
UMB Bank, n.a.
Bob D. Swartz, DDS
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
North Central
Marty L. James
President
North Central Missouri Region
UMB Bank, n.a.
R. Crosby Kemper 6
Chairman Emeritus
UMB Financial Corporation
John M. Perry, DVM
Hampton Feedlot, Inc.
Phillip J. Smith
Community Bank President
UMB Bank, n.a.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
Jennifer L. Waugh
Jennifer L. Waugh, CPA
Springfield, Missouri
Ann Marie Baker
President
Southwest Missouri Region
UMB Bank, n.a.
William H. Darr
Vice Chairman
American Dehydrated Foods, Inc./
International Dehydrated Foods, Inc.
Harold D. Garrison
Consultant
Peter J. Genovese
Vice Chairman
UMB Financial Corporation
John T. Gentry
President and Chairman
Positronic Industries
Donald E. Golik
Retired Chairman of the Board
Paul Mueller Company
R.E. (Mike) Baker
President
Pepsi Cola Bottling of Brookfield
Louis A. Griesemer
President
Springfield Underground, Inc.
James Brinkley
Co-Owner
Brinkley Angus Ranch
S. Miles Dickson, DVM
Co-Owner
Highland Vet Clinic
Wayne A. Foster
President
Wayne Foster Farms, Inc.
36
Brian K. Hammons
President and CEO
Hammons Products Company
Rex W. Kay
President
Kay Concrete Materials Company
Alvin Rohrs
President and CEO
Enactus
David A. Trottier
Retired Chairman
Summer Fresh Supermarkets, Inc.
ADVISORY BOARDS
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
Warrensburg, Missouri
The Honorable Joe Dandurand
Missouri Deputy Attorney General
Tony Mayfield
President
Central Missouri Region
UMB Bank, n.a
Douglas E. Mitchell
Owner
Legal Investigative Services, Inc.
Ernest B. Staashelm
Community Bank President
UMB Bank, n.a.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
Gregory B. Vinardi
Business Advisor & Investor
Deleta Williams
Retired
State Representative
Warsaw, Missouri
William G. Bunch
Owner
Bunch Family Farms, LLC
Mid Missouri Autosports.com, Inc.
John Cook
President
Cook Auction Company, Inc.
Scotty E. Henderson
Owner and Manager
Henderson Ranch and Cattle
Company
Thomas A. Hill
Retired
UMB Bank, n.a.
Shawn H. Hilty
Owner/Operator
Hilty Farms
Stanfred L. Hilty
Owner/Operator
Hilty Farms
Kenneth F. Kammeyer
Retired
Jerry D. Lumpe
Retired
Tony Mayfield
President
Central Missouri Region
UMB Bank, n.a
James A. Miller
Director
Reser Funeral Home
Davis-Miller Funeral Home
Paul Ross
Retired
Ernest B. Staashelm
Community Bank President
UMB Bank, n.a.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
Martha M. Weaver
Retired
TRISTAR Sporting Arms, Ltd.
Kansas Region
Abilene, Kansas
Stewart R. Etherington
President
Etherington and Company Realtors
Wendell D. Gugler
Retired
Christopher A. Howell
President
Western Kansas Region
UMB Bank, n.a.
Alfred P. Jones
Retired
Dale Koop
President
Crop Service Center, Inc.
W. Patrick Robson
President
Robson Oil Company
Daryl D. Roney
Community Bank President
Abilene Banking Center
UMB Bank, n.a.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
Atchison, Kansas
Wayne Basso
President
Eastern Kansas Region
UMB Bank, n.a.
Jonathan D. Mize
Executive Vice President
Blish-Mize Company
Eric A. Niemann
Owner
Niemann Farms, LLC
Larry Schaffer
President
Chase Technology
Kenneth L. Stielow
President
Bar S Ranch, Inc.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a
Howard M. Wehrman
President
MHW Enterprises, Inc.
Anthony H. Witt, Jr.
Witt Farm Company
Salina, Kansas
Ross Doyen
Farmer and Cattleman
Robert W. Exline, Jr.
President
Exline, Inc.
C.N. Hoffman III
Farmer/Rancher
William C. Hoffman
Investor
Christopher A. Howell
President
Western Kansas Region
UMB Bank, n.a.
Douglas W. Rempp
President/Owner
McDonalds of Salina
Richard A. Renfro
Retired UMB President
Jon H. Starks
Community Bank President
UMB Bank, n.a.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a.
Topeka, Kansas
Ronald D. Andersen
President
ANCO, Inc.
Wayne F. Basso
President
Eastern Kansas Region
UMB Bank, n.a.
Manhattan, Kansas
Wayne Basso
President
Eastern Kansas Region
UMB Bank, n.a.
H. Alan Bell
Retired
Donald E. Ince
Retired
Robert K. Larsen
Retired
Farming/Investments
Barry J. Sarvis
Pharmacist/President
Barry’s Drug Center
& Dunne’s Pharmacy
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a
David L. Urban
Community Bank President
Manhattan Banking Center
UMB Bank, n.a.
Russell, Kansas
D. Leonard Brown
Farmer and Rancher
Wesley M. Clark
Community Bank President
Russell Banking Center
UMB Bank, n.a.
Christopher A. Howell
President
Western Kansas Region
UMB Bank, n.a.
Morris F. Krug
President
Krug Farms, Inc.
Earl D. Merkel, MD
Russell Regional Hospital
37
S. Lucky DeFries
Stockholder
Coffman, DeFries and Northern, P.A.
John R. Dietrick
CEO and General Counsel
Creative Business Solutions
Stuart G. Douthett
President
Douthett & Company, CPA, PA
Jerry Glasgow
President
Performance Tire and Wheel
DeWitt M. Harkness
President
Wolfe’s Camera Shops, Inc.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a
Wichita, Kansas
William J. Hampel
President
Hampel Oil Distributors, Inc.
Christopher A. Howell
President
Western Kansas Region
UMB Bank, n.a.
William L. Oliver, Jr.
Attorney
Martin, Pringle, Oliver,
Wallace and Bauer LLP
William L. Phillips
Chief Executive Officer
Vornado Air, LLC
Howard Redburn
Central Power Systems & Services
William R. Summers
Senior Vice President
Wichita Banking Center
UMB Bank, n.a.
Gil Trout
Chairman & CEO
Kansas/Greater Missouri Region
UMB Bank, n.a
Dan J. Waller
Vice President
Conco Construction
ADVISORY BOARDS
Nebraska Region
W. Thomas Chulick
President
Midwest Regions
Chairman & CEO
St. Louis Region
UMB Bank, n.a.
Chad A. Denton
President
CFO Services
Mark S. Eldridge
President and CEO
The Growth Coach
Joel T. Falk
President
Nebraska Region
UMB Bank, n.a.
Richard Kusleika
President/Owner
Standard Heating &
Air Conditioning, Inc.
Mitch Lane
Chief Executive Officer
Echo Group, Inc.
Thomas C. Macy
Chief Executive Officer
Nebraska Orthopaedic Hospital
Mark Morris
President
Mechanical Sales, Inc.
Joel Larmore
Chairman and CEO
Rehab Visions, Inc.
Pam Stanek
President
The Interior Design Firm
Eric Stueckrath
Chief Executive Officer
Outlook Nebraska
Steve Walenz
President
Sierra Juliet, Inc.
Oklahoma Region
Craig L. Anderson
President
Commercial Banking
UMB Financial Corporation
Gentner F. Drummond
Attorney at Law
Drummond Law
Robert J. Fisher, Jr.
President
Oklahoma National Stock
Yards Company
Gerald N. Furseth
Owner
Gerald N. Furseth -
Oil and Gas Producer
Royce M. Hammons
Chairman & CEO
Oklahoma Region
UMB Bank, n.a.
David R. Hardy
Executive Vice President
UMB Bank, n.a.
Jack S. Henley
Managing Member
Henley and Johnson, PLLC
James C. Kneale
Retired President and COO
ONEOK, Inc.
Ralph L. Mason
Senior Partner
Mason-Harrison-Ratliff
Tom J. McDaniel
President
American Fidelity Foundation
Frank A. Sewell
President
Oklahoma City
UMB Bank, n.a.
William F. Shdeed
Attorney at Law
Roger N. Simons
Chairman
Simons Investment Company
Eastern Regions
St. Louis, Missouri – City
Theodore M. Armstrong
Financial/Board Consultant
Warner Baxter
President and CEO
Ameren Missouri
Vincent J. Bommarito
Chief Executive Officer
Tony’s Restaurants, Inc.
Louis G. Chiodini
President
Chiodini Associates
W. Thomas Chulick
President
Midwest Regions
Chairman & CEO
St. Louis Region
UMB Bank, n.a.
38
Richard G. Engelsmann
Chairman
Beltservice Corporation
Thomas F. Feldmann
President and CEO
Lionmark Construction Companies
Peter J. Genovese
Vice Chairman
UMB Financial Corporation
Todd J. Korte
President and CEO
The Korte Company
J. Michael Medart
President and CEO
Medart, Inc.
Patrick Morris
President
Morris Transportation & MBC, LLC
David H. Naunheim
President and Chief Lending Officer
St. Louis Region
UMB Bank, n.a.
Scott Negwer
President
Negwer Materials, Inc.
Kathleen T. Osborn
Executive Director
Regional Business Council
St. Louis, Missouri – County
Megan P. Bittle
Chief Operating Officer
RSI Kitchen and Bath
Vincent P. Bommarito
Executive Chef
Tony’s Restaurants, Inc.
W. Thomas Chulick
President
Midwest Regions
Chairman & CEO
St. Louis Region
UMB Bank, n.a.
Peter J. Genovese
Vice Chairman
UMB Financial Corporation
John M. Gunther
President
Gunther Salt Company
John J. Inkley, Jr.
Partner
Armstrong Teasdale LLP
Bart J. Margiotta
President
Priority Properties
ADVISORY BOARDS
June McAllister Fowler
Vice President
Corporate and Public Communications
BJC HealthCare
Thomas H. Renner, Jr.
Owner
Shiloh Valley Equipment Company/
Renner Stock Farms
Tim M. Murch
President
MMMM
Donald P. Rigney
Executive Vice President and COO
Empire Comfort Systems, Inc.
David H. Naunheim
President and Chief Lending Officer
St. Louis Region
UMB Bank, n.a.
Ronald G. Skaggs
Executive Vice President
Commercial Banking
UMB Bank, n.a.
St. Charles, Missouri
Gregory Aman
Senior Vice President
Private Banking Client Manager
UMB Bank, n.a.
Charles C. Blossom
Partner
Affirmative Solutions
W. Thomas Chulick
President
Midwest Regions
Chairman & CEO
St. Louis Region
UMB Bank, n.a.
Julia M. Eckstein
Director
St. Charles County Department of
Community Health and Environment
Peter J. Genovese
Vice Chairman
UMB Financial Corporation
David H. Naunheim
President and Chief Lending Officer
St. Louis Region
UMB Bank, n.a.
Harlan Pals
Chairman/Principal
Pals Group
Scott T. Rupp
Vice President
Business Development
UMB Bank, n.a.
Kim Scheidegger York
President - Commercial Leasing
Corporate Group, Inc.
Robert Topping
Owner
RT Management Services
Maurice D. Newberry
Vice Chairman
Nesher, LLC
Stephen E. Ricci
President and CEO
Ricci Associates, Inc.
dba RAI Insurance Group
Illinois
P. Douglas Becherer
President
Drs. Becherer & Associates, Ltd.
Pamela A. Burnham
President
Von Alst Operating, LLC
W. Thomas Chulick
President
Midwest Regions
Chairman & CEO
St. Louis Region
UMB Bank, n.a.
Georgia Costello, Ph.D.
President
Southwestern Illinois College
Larry Eckert
President
Bethel-Eckert Enterprises, Inc.
Peter J. Genovese
Vice Chairman
UMB Financial Corporation
Nick Gojmeric
President
Collision Plus Auto Body Centers
Larry McCulley
President and CEO
Southern Illinois Healthcare
Foundation
David H. Naunheim
President and Chief Lending Officer
St. Louis Region
UMB Bank, n.a.
Maurice E. Netemeyer
President
Aviston Lumber Company
39
In Memoriam
R. Crosby Kemper, Jr.
1927-2014
We join many friends and colleagues in
mourning the loss of R. Crosby Kemper, Jr.,
UMB’s Chief Executive Officer for 30 years,
who passed away on January 2, 2014.
He was a visionary, leader, philanthropist
and mentor who embodied the values that
continue to shape UMB.
In five decades with the company, starting
at age 22 as a night clerk and rising to
become the long-time Chairman & CEO,
Mr. Kemper drove the growth of UMB Bank
and the diversified financial services business
of UMB Financial. He retired in 2004.
Giving purposefully and willingly of his time,
influence and resources, Mr. Kemper served
in leadership roles for a wide range of
community organizations. He helped make
Kansas City what it is today by spearheading
the founding of Agriculture Future of
America, the Kansas City Symphony, the
Kemper Museum of Contemporary Art and
the Metropolitan Performing Arts Fund.
Additional history, photographs and tributes
are online at www.RCrosbyKemperJr.com.
CORPORATE INFORMATION
Notice of Annual Meeting
Tuesday, April 22, 2014
UMB Financial Corporation
1010 Grand Boulevard
Kansas City, MO 64106
10-K Request
We will furnish, without charge,
a copy of our 2013 Report
to the SEC (Form 10-K) to
any shareholder upon written
request. Please specify
Form 10-K when requesting.
The report and 10-K filing
will also be available online
at UMBFinancial.com.
Transfer Agent
Computershare Trust
Company, n.a.
P.O. Box 43078
Providence, RI 02940-3078
800.884.4225
UMB Financial Corporation
1010 Grand Boulevard
Post Office Box 419226
Kansas City, MO 64141-6226
UMB.com
Stock Quotation Symbol
UMBF
NASDAQ OMX
Investor Relations
Abby Wendel
Senior Vice President,
Investor Relations
Financial information
Brian Walker
Chief Financial Officer &
Chief Accounting Officer
To contact us, please call
816.860.7000 or 800.821.2171
For other inquiries
Marketing Communication
Marketing@UMB.com
Printed on recycled paper.
We’re proud that UMB recycled 362 tons of paper in 2013. This
saved an estimated: 8,688 trees, 8,272,954 gallons of waste water,
695,694 pounds of solid waste and 3,453,985 kilowatts of energy.
The paper, paper mill and printer for this publication are
all certified to meet the strict standards of the Forest
Stewardship Council (FSC), which promotes environmentally
appropriate, socially beneficial and economically viable
management of the world’s forests.
Cautionary Notice About Forward-Looking Statements
This document contains 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.
“UMB”, “COUNT ON MORE”, “SCOUT”, “SCOUT INVESTMENTS”, “JD CLARK & COMPANY”, the UMB design logo, the UMB Count on More design logo,
and the Scout design logo – Reg. U.S. Pat. & Tm. Off. These names and design logos are registered trademarks of UMB Financial Corporation.
40
A FOCUS ON QUALITY
Long-term results are more important than short-term gains, and we’ve built our
company to endure for the next 100 years. At UMB Financial, we believe that quality
endures. It is the standard by which we measure everything.
UMB Financial Corporation (NASDAQ: UMBF) Credit Ratings as of 2/05/14
Credit Ratings
Long-term Issuer
Short-term / Commercial Paper
Bank Individual
Bank Support
Credit Ratings (Subsidiaries)
UMB Bank, National Association
Certificate of Deposit
Bank Individual
Bank Support
S&P
A- / Outlook Stable
Fitch
A+ / Outlook Stable
A-2
-
-
S&P
-
-
-
F1
a+
5
Fitch
AA-
a+
5
At UMB, we promise that our customers can Count on more from us. A key component
of that includes investing in and supporting our local communities. We partner with
organizations to support initiatives and programs that respond in meaningful ways to
our community needs. Our support is concentrated in the following areas:
• Agricultural Sustainability
• Arts Cultivation
• Diversity
• Education
• Environmental Stewardship
• Healthy Living
• Self-Sufficient Communities
35.2K
In honor of UMB’s 100-year anniversary,
associates volunteered more than
35,000 hours throughout our footprint.
$770K
Estimated economic value of UMB
associates’ volunteer hours in 2013.
Based on the 2013 national value of volunteer
time at $22.14 per hour, IndependentSector.org.
9.7K
$1.2M
Hours of qualified volunteer time
off 2013.
More than $1.2 million donated by
UMB in 2013.
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UMBFinancial.com