UMB Financial
Annual Report 2014

Plain-text annual report

Strength in Balance 2014 ANNUAL REPORT Industry 2014 median data as reported to SNL Financial as of 02/16/15 UMBF As of December 31, 2014 +17.1% Dividend Growth Full Year 2004 through full year 2014. 1.36% Nonperforming Loans To Total Loans 86.4% Loans-To-Deposits Ratio 13.01% Tier 1 Capital Ratio +13.9% Noninterest Income Growth During the past five years. +114.1% Dividend Growth UMB increased its dividend 4.4 percent in 2014, the 12th time in the past ten years for a total increase of 114.1 percent. 0.37% Nonperforming Loans To Total Loans We continue to maintain strong asset quality throughout a variety of economic conditions. 54.8% Loans-To-Deposits Ratio We are in the business of lending money and have plenty of liquidity to meet our customers’ needs. 13.29% Tier 1 Capital Ratio Our Tier 1 capital ratio remains strong. +60.8% Noninterest Income Growth Our noninterest income over the last five years outpaced the industry, again demonstrating that our diversified business model remains effective. The Perfect Balance High-Quality Credit We continue to have a low net charge off ratio while maintaining consistent loan growth. Diverse Revenue Streams Our business model continued to deliver results as full-year revenue expanded across all of our business segments. Low-Cost Funding Our diversified fee businesses provide a funding source, creating a pricing advantage for our customers. Strong Balance Sheet UMB has an enviable balance sheet with ample liquidity to expand lending and further serve customer needs. The Best People in the Business Our associates are our biggest strength, and their dedication to what we call the unparalleled customer experience is truly what sets us apart. Our Growth Plan to Deliver Enduring Value We've always believed long-term results are more important than short-term gains. UMB has been deliberately built to endure the stresses that come with economic cycles. 1 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. $486.6M $52.9M UMB Bank Revenue Net Income $94.2M $13.5M UMB Fund Services As of December 31, 2014 $131.2M $28.9M $136.7M $25.4M Scout Investments UMB Payment Solutions Total Revenue $848.7M 2013 $825.1M Earnings Per Share (Diluted) $2.65 2013 $3.20 Market Cap Total Assets $2.6B 2013 $2.9B 5-Year Earnings Per Share Growth (CAGR) (Diluted) +3.8% 2013 +6.10% $17.5B 2013 $16.9B Dividends Per Share Investment Assets Under Management $42.8B 2013 $41.4B Price to Earnings Ratio $0.91 2013 $.87 21.47 2013 19.78 Percentage Noninterest Bearing Deposits 41.4% 2013 38.1% Percent Revenue From Fees 58.8% 2013 59.6% UMB Financial Corporation 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 UMB Financial UMBFinancial.com Headquarters KC, MO UMB Bank UMB.com Locations / ATMs 108/306 UMB Fund Services UMBFS.com Years in Business 102 Scout Investments ScoutInv.com Associates 3,592 Follow UMB MARINER KEMPER Chairman and Chief Executive Officer Strength in balance— today and tomorrow. Dear Fellow Shareholders, For years, I’ve used this letter as a Let me share with you several five-year compound annual growth rate (CAGR) place to talk about UMB’s diversified examples from our income statement business model, and how it serves and balance sheet from 2009 to 2014: us well in all economic climates. In 2007, right before one of the • Total noninterest income has grown worst financial crises in recent history, 10.0 percent I wrote, “In today’s climate of economic • Net income has improved 6.2 percent uncertainty, our unwavering high • Total revenue increased 6.7 percent standards have allowed us to leverage • We’ve held total noninterest our stability and foresight to the expense growth to 7.7 percent benefit of our customers and our • Average total deposits have grown communities. Although we have been 10.8 percent criticized as being overly cautious, • Average loans have grown an the foundation that was built nearly impressive 9.7 percent a century ago has prepared us for times such as these. While others are By purposeful design, UMB is built recovering from reckless expansion, for strength. And while 2014 had its we can look ahead and actively share of challenges, we take comfort pursue our strategic growth plans.” in knowing that when one area of our business may lag behind— Since I wrote those words above regardless of reason—we have a eight years ago, our performance model that allows us to drive growth has proven that we have the right despite cyclicality. model. In 2014, we faced headwinds. But, we did it with the underpinnings The key drivers behind this model of a smart, sound and diverse business are our banking segment and our model that we’ve built over the years fee businesses. I would like to make in order to position our company for particular mention of the performance whatever comes our way. of Prairie Capital Management (PCM), 2 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 $350 $333 $320 $317 $311 $492 $499 $458 $414 $360 $134 $123 $121 $107 $91 $311 $311 $350 $350 $333 $333 $320 $320 $317 $317 $492 $499 $492 $499 $458 $458 $414 $414 $360 $360 $134 $134 $123 $123 $121 $121 $107 $107 $91 $91 10 11 12 13 14 10 11 12 13 14 10 11 12 13 14 10 10 11 11 12 12 13 13 14 14 10 10 11 11 12 12 13 13 14 14 10 10 11 11 12 12 13 13 14 14 350 300 250 200 150 100 50 0 500 400 300 200 100 0 150 150 120 120 90 90 60 60 30 30 0 0 90 60 30 0 150 350 350 500 500 which we acquired in 2010. We The bank cultivated customer 120 could not be more pleased with 300 300 the performance of this group and 250 250 the depth of services they offer our 200 200 customers. However, the timing of 150 150 relationships and welcomed new 400 400 clients to grow deposits and loans again in 2014. Net loans increased 300 300 14.6 percent year over year, and we 200 200 the accounting treatment for changes have now reported 19 consecutive in the valuation of certain Prairie 100 100 quarters of increased lending. 100 100 Capital underlying investments 50 50 and the corresponding accruals for 0 0 The bank is delivering on our strategy 0 0 payments to the investment managers to increase interest income by shifting introduced some volatility to our more assets from securities into loans. income statement in 2013 and 2014. In December 2014, UMB added an In 2013, one of PCM's co-investment important catalyst for growth with vehicles had strong returns, resulting the signing of an agreement to acquire in the majority of the equity earnings Marquette Financial Companies. on alternative investments of The transaction is expected to close $19.0 million. In 2014, those investments in 2015, and it will raise UMB’s profile resulted in another $4.0 million in in banking in the Phoenix-Scottsdale additional equity earnings. Also in and Dallas-Fort Worth markets, as well 2014, we recognized a contingency as add two attractive specialty-finance reserve of $20.3 million as a future businesses and an asset management payment to the investment managers. firm based in Minnesota. Going forward, we anticipate the timing of the revenue to better match Overall, our fee-based businesses the expenses, and this should result posted respectable results. Noninterest in less volatility. While it is hard to income provided 58.8 percent of total predict the future performance of revenue for 2014, a key differentiator these investments, we continue to for UMB among our banking peers. look to PCM to produce solid results We discuss these diverse businesses while serving their client base. in detail later in this report. 3 While Scout Investments' equity funds interest rates. No one knows the timing experienced net outflows during 2014, of the Fed action, but a turn in the net inflows into the fixed income rate cycle seems inevitable. UMB is strategies helped offset the impact positioned to benefit financially once of the equity outflows. monetary policy does begin to tighten. Overall, we have increased UMB’s historical levels of borrowing costs will noninterest income at a 10.0 percent serve as a market-based correction to We also believe returning to more compound annual rate for the past credit excesses. five years—and delivered 15.0 percent compound annual growth in trust UMB has consistently been willing to and securities processing in that do the right thing—this is a strength time. We're investing in activities ingrained in our culture. What makes across all businesses to drive us strong isn’t quickly replicated. It is long-term performance. the wisdom of experience, accumulated over more than a century of serving our Finally, our Board of Directors in 2014 customers through all kinds of cycles. declared a 4.4 percent increase in the dividend rate, UMB’s 12th dividend This brings us to UMB’s strategic increase in the past ten years. direction for the future, and it begins with customers. Customers, we have We have believed for some years that found, want personal contact with the Federal Reserve Board’s monetary experienced leaders at their institutions policy—holding benchmark interest —plus the products and technologies rates near zero—is penalizing savers to meet varied financial needs. They’re and financially prudent businesses looking for a partner who understands while encouraging over-borrowing their business, stays in touch, and may and risky bets in capital markets. offer advice or make introductions to help the clients’ business. This happens The financial crisis of 2008 should have every day—it’s what we do. taught Americans the risks of loose credit, but again today we see riskier UMB’s commitment is to deliver the loans being made to overleveraged unparalleled customer experience. individuals and businesses by some We measure customer satisfaction banks and non-bank players. We see through regular, objective surveys— the expansive policy as a risk to the and those measures show that we economy and to some financial are making steady progress. institutions—although UMB is not following the herd in taking on UMB’s business model as a diversified excessive risks. financial services company means we cultivate customer relationships Looking at the broader business across many walks of life. The model environment, the good news is that the emphasizes diverse revenue sources, U.S. economy is growing, though not high-quality credit, a strong balance as fast as we and most of our clients sheet and low-cost funding. The beauty would like. The Federal Reserve seems of diverse revenue sources is that usually to be moving, haltingly, toward raising when one sector is “zigging,” something 4 “What makes us strong isn’t quickly replicated. It is the wisdom of experience, accumulated over more than a century of serving our customers through all kinds of cycles.” else is “zagging,” so this model not In short, we expect UMB to continue only propels UMB’s growth—it helps to deliver balanced growth, safety and protect us from fluctuating markets. great service for customers—and to provide consistent returns over time As a competitive advantage, this for our shareholders. model is durable because it is not easy to duplicate. We have spent As a shareholder, you can take comfort years building our diverse businesses in the dedication and experience of the in these specialized fields, and it 3,592 UMB associates who deliver our would be hard for another company diverse products. I am especially proud to move into these services without of all my colleagues across the footprint the benefit of experience. and all of their achievements in 2014. The future is filled with promise for Our business goals for the coming UMB. Sustained by values that have years are straightforward: • On the banking side, we want UMB brought this company success for more than a century, we will continue to have a meaningful share in all of to deliver strength in balance. our markets. • We aspire to make Scout Investments Sincerely, a more significant player in asset management globally. • We expect UMB Healthcare Services to remain a top player in a large market as U.S. employers increasingly turn to insurance plans that Mariner Kemper Chairman & Chief Executive Officer include HSAs. March 1, 2015 • We believe we can continue to gain ground in payment services and fund administration. • We expect to integrate our Marquette acquisition and build on our new client relationships. 5 LEADING THE FINANCIAL SERVICES INDUSTRY +137.6% Ten Year Total Return UMBF Ten Year Total Return as of December 31, 2014 was 137.6 percent. In that same period, total returns for the S&P 500 Stock Index and the SNL US Banks Index were +109.5 percent and -6.5 percent, respectively. Source: SNL Financial $42.8B Total Assets Under Management During the past five years, we have grown total AUM 235.2 percent from $12.7 billion to $42.8 billion due to our acquisitions, organic growth, market performance and net flows. 58.8% 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. 6 PETER J. DESILVA President and Chief Operating Officer MICHAEL D. HAGEDORN President and Chief Executive Officer, UMB Bank, n.a. BRIAN WALKER Chief Financial Officer and Chief Accounting Officer Balanced Growth Builds Our Strength MANAGEMENT Q&A To answer questions on the minds of in net loans in 2014. The fourth quarter was our 19th consecutive quarter of shareholders, we sat down with UMB’s loan growth—while maintaining leadership team—Mariner Kemper, outstanding asset quality. We continue Peter deSilva, Mike Hagedorn and to execute on our strategy of growing Brian Walker. Here are excerpts: net interest income during this extended period of low rates by expanding our Starting with 2014 performance, low-cost deposit base and shifting what’s your view of how UMB interest-bearing assets from fixed- is evolving? Mariner: UMB continues to deliver strong, balanced growth. Revenue expanded across our diverse business income securities into loans. During the past five years our average loans have grown at a 9.7 percent compound annual rate. lines in 2014, and earnings benefited from the high credit quality of our Peter: Our fee-based services also delivered modest growth, driving portfolio, our strong balance sheet a 1.4 percent increase in noninterest and low-cost funding. Our diversified income and providing nearly 60 percent financial holding company business of UMB’s revenue in 2014—of this model continues to pay off, and doing noninterest income, 38.9 percent the right thing for customers ensures came from the bank, and 61.1 percent that UMB will thrive in the years to came from the other three segments. come. Looking to 2015, we will focus on growing our banking franchise Institutional Investment Management, while integrating the acquisition we Scout Investments, achieved record announced in December 2014, as well trust and securities processing income as growing our fee businesses. as Scout assets under management Mike: The bank segment is growing nicely; achieving a 14.6 percent increase administration and custody fees grew 10.6 percent. Health Savings Accounts held steady at $31.2 billion. Fund 7 Diverse Income Revenue Streams Revenue by Business Segment 41% 59% 59% Noninterest Income 41% Net Interest Income 11% 16% 16% 57% UMB Bank UMB Payment Solutions Scout Investments UMB Fund Services (HSAs) continued to skyrocket, fund services, payments provider and with deposits up 35.3 percent and HSA administrator. During the past interchange fees on healthcare- several years, capital markets have related card purchase volumes flourished, payment volumes have up 50.0 percent in 2014. Overall, grown, and Americans have sought noninterest income for the company solutions for healthcare costs all while grew 1.4 percent in 2014. interest rates remain at historically low levels. The diversified model works. You often mention UMB's ‘business model’—why? Mariner: You only have to look as far back as the 2008 financial crisis to know that banks aren’t all the same— far from it. Ways of doing business How does UMB maintain the low funding cost you see as a competitive advantage? Brian: UMB’s cost of funds is a deliberate outcome of our business matter, and business models matter. model. Our diversified fee businesses We have devoted a great deal of provide extra liquidity for the bank. attention to building UMB as a For example, UMB Healthcare Services diversified financial services not only brings in fee income— company. It’s not happenstance: our HSA deposits and assets crossed UMB has created and continues to the $1 billion threshold early in 2015. nurture a durable business model. In a competitive lending environment, Brian: UMB has consistently thrived in different economic, business and low-cost funding is an advantage for UMB Bank. We can win new business and retain existing clients, while market cycles—in part because enjoying somewhat of a buffer we focus on quality, but also because against the pressure that competitive we are more than a bank. Our financial- pricing puts on margins. This benefits services model consists of a bank, net interest income as loan an institutional asset manager, volumes increase. 8 Five-Year Total Return UMBF vs. SNL US Banks Index and S&P 500 $ 200 $ 150 $ 100 $ 50 09 $115 $112 $107 10 $117 $99 $87 11 $205 $180 $158 $180 $176 $161 $136 $118 $117 12 13 14 UMBF SNL US Banks S&P 500 This summarizes the cumulative return experienced by UMBF shareholders for the years 2009 through 2014, 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 How is the company preparing for UMB tremendously. In 2014, noninterest a transition to rising interest rates? income provided 58.8 percent of revenue. We also continually find ways Brian: We have actively positioned UMB to benefit as rates begin to rise. to serve UMB customers by offering additional services, such as wealth In our earning asset portfolio, we management or payment solutions have moved some credits toward for our customers. shorter tenure and variable rates, generally tied to prime or short-term LIBOR. As a result, whenever the Federal Reserve does drive the short end of the rate curve higher, 250 200 How is Scout performing? Peter: Scout delivered record earnings in 2014 and finished the year with the nimble position of our earning $31.2 billion in assets under assets is expected to produce a lift 150 management. Noninterest income in interest income. Of course, no one has grown at a four-year compound knows when this phase will start, so there’s a balance between managing duration and yields. But we believe our assets are positioned to benefit 100 50 annual rate of 21.1 percent. That being said, Scout is facing headwinds as it has endured sizable net outflows from the Scout International Fund due to UMB earnings when rates do go up. relative underperformance in 2013, resulting in the firm’s asset mix shifting What is your view of performance to 67 percent fixed income and in UMB’s fee-based businesses? 33 percent equity from 49 percent fixed income and 51 percent equity Mariner: Our diverse fee businesses continue to deliver. Noninterest income in 2013. has grown at a five-year compound Scout’s acquisition of Reams Asset annual rate of 10.0 percent, coinciding Management in 2010 has been a with the challenge of low interest tremendous success as fixed income rates, so diversification has helped assets under management have now 9 Nonperforming Loans Our credit quality metrics continue to outpace the industry. 3% 2% 1% 1.36% Industry Median 0.37% UMBF 10 11 12 13 14 Data from SNL Financial as of 12/31/14, using data updated through 2/16/15 doubled. During the year, Scout Where does UMB Healthcare launched two new funds including Services fit into a confusing its first Undertakings for Collective national healthcare scene? Investment in Transferable Securities (UCITS) domiciled in Luxembourg for foreign investors. Peter: The “macro” trends in healthcare are driving our rapid growth in services, including a 34.4 percent increase in What trends are you seeing in UMB HSAs and 35.3 percent growth the asset servicing and fund in our HSA deposits in 2014. The aging administration businesses? U.S. population, rising medical costs and worries among employers are driving Peter: UMB Fund Services continues to grow, meeting a vital need for rapid adoption of HSAs, paired with high-deductible insurance, to better back-office services and technology manage costs. for asset managers including mutual funds, hedge funds and private equity funds. In 2014, our 2014 Healthcare Savings Deposit Growth base of more than 200 clients expanded to more than $198 billion in assets under administration, which includes fund clients receiving custody services from UMB Bank. Several industry awards in 2014 honored UMB for outstanding service. Private equity assets under administration more than doubled. In addition, UMB’s new solutions for ETFs and liquid alternatives, two growing categories of funds, are particularly promising. +35.3% 2014 Healthcare-Related Card Puchase Volume Growth +50.0% 10 2014 Revenue Growth 2014 Noninterest Income Growth +2.8% +1.4% 2014 Total Purchase Volume Growth 2014 Net Interest Income Growth +24.8% +5.0% We see the trends in healthcare as a based on trends in the use of cards huge opportunity still in its early days. and electronic payments. In 2014, Consumer benefits designed to pay transaction volumes on UMB for healthcare services face the healthcare debit cards, commercial same kind of revolution we witnessed credit cards, and consumer debit with retirement, a shift from “defined and credit cards grew 24.8 percent benefit” to “defined contribution” to $8.5 billion. The rising volumes strategies. Retirement accounts like produced an 8.7 percent increase IRAs came into being four decades in interchange revenue during 2014. ago, and today 102 million Americans In 2015, we are looking forward to have IRAs and 401(k)s, with launching Apple Pay in an effort to $4.4 trillion in assets. HSAs have only provide our customers with additional been around 10 years, and Americans forms of payment solutions. have so far created about 12 million accounts, with $20 billion in deposits Could you tell us about the acquisition and assets. Paying for healthcare is UMB announced in late 2014? 30 years behind paying for retirement and has a lot of growth ahead. Mariner: In December, we reached an agreement to acquire Marquette UMB already is a leading provider Financial Companies (MFC), and when of healthcare payment solutions such the deal closes in mid-2015 it will as HSAs and payment cards. Our goal expand UMB’s business in exciting is to be a major nationwide player ways. At the heart of this acquisition as healthcare solutions evolve into are two banks: Meridian Bank in the a significant market opportunity. Phoenix-Scottsdale market and Meridian Bank Texas in the Dallas-Fort Are credit and debit cards a Worth market. Marquette's total sustainable source of growth? company assets were $1.3 billion Peter: We expect the growth in Payment Solutions to continue, on September 30, 2014. In the mix, we also acquire two attractive specialty finance businesses with national 11 Total Assets Under Management Billions of Dollars Total Assets Under Management Billions of Dollars Average Shareholder Equity Billions of Dollars Average Shareholder Equity Billions of Dollars $42.8 $42.8 $41.4 $41.4 $33.1 $33.1 $27.9 $27.9 $28.0 $28.0 $1.60 $1.60 $1.34 $1.34 $1.26 $1.26 $1.14 $1.14 $1.07 $1.07 10 10 11 11 12 12 13 13 14 14 10 10 11 11 12 12 13 13 14 14 footprints and high-quality commercial What does the acquisition add to portfolios, plus Marquette Asset 50 50 200 200 UMB’s banking business? Management, based in Minnesota. 40 40 We put every acquisition through 30 30 150 150 Mike: This combination is a great strategic fit. Arizona and Texas were two of the rigorous tests—to ensure a strategic, fastest-growth regions in UMB Bank’s 100 100 financial and cultural fit. This one 20 20 footprint in 2014, and this acquisition checks all the boxes. Strategically, will improve our market share. We 50 50 Arizona and Texas already are growth 10 10 will add to our customer base and markets in banking, the two national 0 0 accelerate our growth plans, adding 0 0 specialty lenders add complementary eight UMB branches in the Phoenix- new businesses, and the asset Scottsdale market and five in management piece fits right in. Dallas-Fort Worth. The financial benefit is very strong. So is the culture, because Marquette is a family-built company that shares Mariner: There’s a great opportunity in combining our UMB Bank teams our values and business approach. with their teams in Arizona and Texas. We are buying a fabulous community Brian: We have a definitive agreement for an all-stock acquisition of Marquette, bank platform from Marquette and combining it with our larger platform subject to the usual closing conditions. of products, services, competencies With the regulatory process for bank and technologies. So we will take the acquisitions, we expect to complete successes of what we’ve built and the transaction in 2015. We expect the transaction to be immediately accretive to UMB’s tangible book value per share and add to our earnings per share in 2016. 2014 Book Value Per Share Increased 8.4 Percent to $36.10 +8.4% 12 “UMB has consistently thrived in different economic, business and market cycles—in part because we focus on quality, but also because we are more than a bank.” Brian Walker Chief Financial Officer what they’ve built in these markets— provides accounts-receivable working together, we expect to build financing and factoring, mainly a much bigger banking business for transportation companies. in Arizona and Texas. The asset-based lender had $230 million in loans outstanding at How do Marquette’s two national September 30, 2014; the factoring lending businesses fit into UMB? business had $102 million outstanding. Both are attractive financially, providing Mariner: We are acquiring two specialty lending businesses with loan portfolios with higher yields but good-quality credit metrics that a national client base: Marquette mirror the current UMB portfolio. Business Credit, which makes asset-based loans, and Marquette Transportation Finance, which Mike: These two offerings also fill gaps in our product line-up. As UMB Risk-Based Capital Ratios Risk-Based Capital Ratios Net Interest Margin Net Interest Margin 14.04% 14.04% 13.29% 13.29% 3.21% 3.21% 2.94% 2.94% 2.75% 2.75% 2.55% 2.49% 2.55% 2.49% 8.72% 8.72% 8% 8% 4% 4% 4% 4% Tier 1 Leverage Tier 1 Leverage Tier 1 Capital Tier 1 Capital Total Risk-based Total Risk-based 10 11 10 12 11 13 12 14 13 14 Regulatory Minimum UMB Regulatory Minimum UMB 13 “UMB customers know us as people they can rely on. The UMB culture embraces high-quality relationships, long-term thinking and sound business practices.” Mike Hagedorn President and CEO, UMB Bank, n.a. builds new relationships, we often talk We like to go beyond good service to business owners who need capital to great service. Our customers know for growth or restructuring projects they can depend on us to be accessible, that may not qualify for a commercial nimble and responsive. It's what sets bank loan. These customers may be us apart from our competition. well-suited for asset-backed financing, and Marquette Business Credit will allow us to meet their needs— Mike: The sum of who we are forms a strong and enduring culture that cementing long-term UMB is recognizable as UMB. It’s about relationships. The same is true of having the integrity to do the right Marquette Transportation Finance. thing and the wisdom not to go chasing Since the lending businesses are after the herd. UMB customers know national, they enable us to serve us as people they can rely on. The UMB customers and expand our UMB culture embraces high-quality client base. What would you say is UMB’s relationships, long-term thinking and sound business practices. greatest strength in today’s What is UMB Bank doing to business environment? improve returns in a low-interest rate environment? Mariner: UMB’s 3,592 associates are our biggest strength. All of our people are engaged in providing each Mike: Our main strategy is to shift more of the bank’s assets into loans over time. customer what we call the unparalleled We have been successful through the customer experience. This means efforts of our great lending teams across we listen and get to know what the footprint, ramping up in long-time our customers need or want. markets and newer ones such as We go out of our way to provide Arizona and Texas. Even as the bank senior-level contact with customers. has grown overall, UMB’s lending has We share financial advice when increased the loans-to-deposits ratio appropriate, or make introductions over the past five years from 50.6 percent for business people. to 54.8 percent. So while low rates have 14 UMB Bank Customer Satisfaction 83.2% 86.5% 82.9% 82.0% 78.2% 10 11 12 13 14 Source: Annual Customer Satisfaction Survey conducted by Market Strategies International in the fall of 2014. Top three box score, unweighted for core UMB Bank lines of business. compressed margins, UMB has grown execute on the strategy to accelerate net interest income at a compound growth both on the banking side and annual rate of 2.9 percent during in fee-based businesses. these five years. Brian: Looking forward, UMB has plenty of room to continue to expand Brian: Three macro developments worth paying attention to are the timing of a long-awaited shift in interest lending. Some banks are 90 to more rates, the Basel III environment and than 100 percent lent-up, so they the potential for legislative changes don’t have many arrows left in the in bank regulation. Timing and quiver for lending. This, coupled impact are hard to predict. with the competitive pressures on deposit growth, could put these banks in a liquidity squeeze. UMB’s Peter: We look for continued growth across new products and services in balance sheet has ample capacity our fee businesses. Looking externally, to continue our strategic shift from cyber security is another issue. The securities into better-yielding loans pace to modernize technology is rapid and continue to grow average loans and the cost to protect our customers at a 9.7 percent five-year CAGR pace. is increasing. We are confident of Sticking with high-quality credit our systems, because we invest in standards, we can continue to technologies to secure customers’ manage net interest margin through information and privacy. Mariner: One thing we know will not change is UMB’s commitment to quality and integrity. The enduring values that have brought steady growth in the past will drive UMB’s future success. growth even if rates remain low. What should UMB shareholders be watching for in 2015? Mike: Completion of our Marquette acquisition will be a pivotal event. The closing is expected in 2015, as we await approvals from banking regulators. Then we will begin to 15 $13.6B Liquidity in Total Deposits We remain a highly liquid company, with more than enough capacity to meet loan demand. .22% Quality Assets We continue to have an outstanding net charge off ratio. 13.29% Strong Capital Position We remain a well capitalized financial services company with Tier 1 Capital Ratio for 2014 at 13.29%. Member FDIC. 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 57.8% Trust & Securities Processing 17.1 % Deposit Service Charges 13.5% Bankcard Fees 3.9% Trading & Investment Banking 3.4% Other 2.2% Brokerage Fees 0.8% Equity Earnings on Alternative Investments 0.8% Gains on Securities Sales 0.6% Insurance Fees $12.7B Average Total Deposits Average deposit growth was 6.4 percent in 2014. $7.0B Average Loans Average loans grew 12.1 percent in 2014. The fourth quarter 2014 was our 19th consecutive quarter of loan growth. Loan Composition Deposit Composition Loan Composition Loan Composition Deposit Composition Deposit Composition Loan Composition Loan Composition 51.6% Commercial & Industrial 51.6% Commercial & Industrial 25.0% Commercial Real Estate 25.0% Commercial Real Estate 8.6% HELOC 8.6% HELOC 5.7% Credit Cards 5.7% Credit Cards 4.3% Consumer Real Estate 4.3% Consumer Real Estate 3.4% Real Estate Construction 3.4% Real Estate Construction 1.4% Consumer other 1.4% Consumer other 49.3% Interest-Bearing Demand 49.3% Interest-Bearing Demand and Savings Deposits and Savings Deposits 41.4% Noninterest-Bearing 41.4% Noninterest-Bearing Demand Deposits Demand Deposits 9.3% Time Deposits 9.3% Time Deposits 51.6% Commercial & Industrial 51.6% Commercial & Industrial 25.0% Commercial Real Estate 25.0% Commercial Real Estate 8.6% HELOC 8.6% HELOC 5.7% Credit Cards 5.7% Credit Cards 4.3% Consumer Real Estate 4.3% Consumer Real Estate 3.4% Real Estate Construction 3.4% Real Estate Construction 1.4% Consumer other 1.4% Consumer other 17 120 100 80 60 40 20 0 UMB was again named one of America’s Best Banks by Forbes for the sixth straight year. Data is based on regulatory filings of public banks and thrifts through the third quarter of 2014. ©2014, Forbes Media LLC. Used with permission. Deposit Composition Deposit Composition Average Loans Billions of Dollars $7.0 $6.2 $5.3 $4.8 $4.5 10 11 12 13 14 49.3% Interest-Bearing Demand 49.3% Interest-Bearing Demand During the past five years, our average loans have grown at a 9.7 percent compound annual rate. 9.3% Time Deposits Demand Deposits and Savings Deposits 41.4% Noninterest-Bearing and Savings Deposits 41.4% Noninterest-Bearing Demand Deposits 9.3% Time Deposits UMB Commercial Banking Our commercial model is the hallmark of our business, providing both sophisticated banking solutions and personal attention. $5.7B Total Commercial and Commercial Real Estate loans in 2014. UMB Aircraft Finance UMB added an aviation focus across the regions offering services to current clients. $4.2 $3.6 $3.5 $3.0 $2.5 Commercial & Industrial Loans Billions of Dollars Commercial Lender-Originated Loans $3.9 $3.3 $2.9 $1.9 $1.7 $1.4 $1.4 $1.3 $2.2 $1.9 $431M In new line of credit commitments for 2014. 10 11 12 13 14 10 11 12 13 14 10 11 12 13 14 Commercial Real Estate Loans Billions of Dollars 3.5 4.0 3.0 $4.2 $3.6 $3.5 $3.0 $2.5 $3.9 $3.3 $2.9 $2.2 $1.9 $1.9 $1.7 $1.4 $1.4 2.5 2.0 $1.3 1.5 1.0 0.5 0.0 10 11 12 13 14 10 11 12 13 14 10 11 12 13 14 61% Commercial 30% Real Estate - Commercial 4% Consumer - Other 3% Real Estate - Residential 2% Real Estate - Construction 2.0 1.5 1.0 0.5 $276M Agribusiness loans increased 80.5 percent in 2014. 0.0 +14.1% Increase in average commercial earning assets. We have expanded on our specialties in Agribusiness processing, and continue to provide strong offerings for dairy, grain and livestock production. 5 4 3 2 1 0 2.0 1.5 .37% 1.0 Nonperforming loan ratio versus the industry average of 1.36 percent. 0.5 Data from SNL Financial as of 02/16/15 0.0 18 5 4 3 2 1 0 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 $11.6B Corporate Trust Assets Under Administration Top 50 Top 25 U.S. Banks for Farm Lending. Source: ABA U.S. Banks for Automated Clearing House origination. Source: NACHA UMB Expands to Fort Worth In 2014, UMB expanded into Fort Worth increasing our presence in North Texas. UMB has served clients in Texas for the past 30 years. Arizona and Texas represented the fastest growing markets in our footprint in 2014, and produced the highest average loan balance growth outside of Kansas City. $4.2B Average commercial deposits grew 17.1 percent in 2014. Billions of Dollars $4.2 $3.6 $3.5 $3.0 $2.5 $3.9 $3.3 $2.9 $1.9 $1.7 $1.4 $1.4 $1.3 $2.2 $1.9 10 11 12 13 14 10 11 12 13 14 10 11 12 13 14 Marquette Financial Companies Loan Composition Marquette Financial Companies Loan Composition As of September 30, 2014 4 5 UMB Announces Intent to Acquire Marquette Financial Companies The pending acquisition of Marquette Financial Companies complements our existing diversified business model nicely and enhances our commercial bank with its diverse businesses— especially the national asset-based lending and factoring businesses. 19 3 2 1 0 Gross Loans $1.0 billion Average Yield 7.00% 46% Commercial & Industrial 46% Commercial & Industrial 16% 1-4 Family 16% 1-4 Family 15% Investor Commercial Real Estate 15% Investor Commercial Real Estate 12% Other 12% Other 11% Owner Occupied Commercial Real Estate 11% Owner Occupied Commercial Real Estate 4.0 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 UMB 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 fourth year in a row at more than 16 percent. HELOC Cumulative Balances 100% 90% 80% 2Q12 UMB 2Q13 2Q14 Source: FDIC 2014 Market Share Report Total National HELOC Balances Source: 2014 Federal Reserve Bank of New York Household Debit and Credit Report. UMB’s Voice of the Customer Customer Experience Award Celent +8.2% Five-year compound annual growth rate for home equity line balances. $643.6M UMB surpassed $600 million in total HELOC balances. UMB Digital Genius Impact Award Kansas City Business Journal +34.5% Text banking increased 35 percent during 2014. +57.9% Experienced a strong increase in the total number of ATM deposits. UMB is launching Apple Pay in 2015. You'll be able to add your UMB Visa card to your iPhone 6. $3.7B Total Consumer and Small Business deposits at the end of 2014. $192.2M Small Business loans grew 9.48 percent during 2014. 20 UMB Private Wealth Management UMB’s Private Wealth Management team is focused on understanding each client’s personal story. Our comprehensive solutions are backed by the resources and experience of a multi-billion-dollar asset management firm, with the personalized service of a private bank. This ensures our 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 Trust and Lifestyle Management Requires Experience Employing our suite of investment products and solutions, we can tailor a plan designed to achieve your unique objectives. Discover the confidence that comes with personalized trust and custodial services backed by the experience of serving clients for more than a century. Managing Risk Creates Confidence 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 Excluding Scout Investments Assets Under Management Billions of Dollars Excluding Scout Investments $7.4B $0.15B $1.74B $7.6B $0.19B $2.04B $5.49B $5.37B $8.8B $0.23B $2.22B $6.39B $11.6B $0.42B $3.60B $10.2B $0.35B $2.85B $7.04B $7.6B 10 11 12 13 14 Brokerage Assets Prairie Capital Management Private Wealth & Institutional Asset Management +31.3% Private Banking Loan five-year compound annual growth rate. Average Private Banking Loans Millions of Dollars $379 $293 $212 $151 $128 10 11 12 13 14 21 +13.3% Year-over-year increase in average production per Financial Advisor. 55% Investment Advisory 30% Trust 9% Charitable 4% IRAs 2% Other “I’m kept informed of any changes and also provided with opportunities to increase my understanding of investing. There is a personal touch from the UMB team we work with.” S. Perna UMB Private Wealth Client “I find UMB’s Officers and staff highly congenial, professional, responsive, competent and interested in me as a customer.” J. Balkcom UMB Private Wealth Client UMB Payment Solutions +19.6% Total Purchase Volume Growth Our five-year compound annual growth rate in Total Purchase Volume has consistently increased from $3.46 billion in 2009 to $8.47 billion in 2014. $1.0B Health Savings Accounts Assets and Deposits UMB Health Savings Accounts (HSAs) grew by 35.3 percent following 2014 open enrollment, surpassing the $1 billion mark as of January 9, 2015. +43.0% Five-Year Average Deposits Compound Annual Growth Rate UMB Payment Solutions total average annual deposits surged to $1.73 billion in 2014. 22 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 $8.47 billion in 2014, continuing the positive trend from $4.28 billion in 2010. $5.22B $5.81B $4.28B 28.0% 30.1% 19.3% 16.4% 3.1% 3.1% $8.47B 52.4% $6.79B 17.6% 16.5% 9.5% 1.4% 2.6% 4.35 3.60 3.08 $918 $1.40 $1.26 $1.17 $1.04 $.82 $642 $431 $323 $280 10 11 12 13 14 10 11 12 13 14 10 Other 11 12 13 14 1.81 2.47 Healthcare Debit Retail Debit Commercial Credit Retail Credit Private Label Credit 1000 800 600 400 200 0 1.5 1.2 0.9 0.6 0.3 0.0 Health Savings Account Deposits & Assets Millions of Dollars $918 $642 $431 $323 $280 10 11 12 13 14 5 4 3 2 1 0 10 11 12 13 14 $4.4B Total Healthcare related 10000 $918 $1.40 purchase volume. $1.26 $1.17 $1.04 $.82 8000 $642 6000 $431 $323 $280 4.4M 4000 11 10 12 10 12 14 Healthcare spending 2000 13 13 11 14 account cards (excludes single use cards). 0 #12 12th largest issuer of Purchasing Cards. 1000 1.5 Source: Nilson, August 2014 800 1.2 0.9 0.6 0.3 600 400 $29B 200 0 0.0 As Program Administrator, UMB’s FDIC Sweep Program grew to a record high of more than $29 billion in 2014. 23 Commercial Cardholder Purchase Volume Billions of Dollars $8.47B 52.4% $8.47B 52.4% 3.60 4.35 $1.40 $1.26 3.08 $1.17 4.35 3.60 3.08 $5.22B $5.81B $1.04 $.82 2.47 $4.28B 28.0% 1.81 $6.79B $6.79B $5.22B $5.81B $4.28B 12 10 11 13 14 12 13 14 30.1% 19.3% 16.4% 3.1% 3.1% 10 11 12 13 14 10 11 12 13 10 14 11 12 13 14 17.6% 16.5% 9.5% 1.4% 2.6% 17.6% 16.5% 9.5% 1.4% 2.6% 10 8 2.47 6 4 2 11 0 1.81 10 5 4 3 2 1 0 1.5 1.2 0.9 0.6 7.2M 0.3 0.0 Commercial Credit Card transactions grew from 6.5 million to 7.2 million in 2014. 28.0% 30.1% 19.3% 16.4% 3.1% 3.1% 10 8 6 4 2 0 10000 8000 6000 4000 2000 0 5 4 3 2 1 0 10000 8000 6000 4000 2000 0 10 8 6 4 2 0 1000 “We've been very happy with our selection of UMB as the vendor for our HSA administration. They have gone above and beyond to meet our administrative needs. Their technical expertise, flexibility, and superior customer service have made them a great vendor partner for our organization.” 400 800 600 200 0 Sharecare, Inc. HR +$7.3B Assets Under Administration Total assets under administration grew from $191.0 billion to $198.3 billion in 2014. $31.5B Alternative Investment Assets Total alternative investment assets under administration grew from $28.1 billion to $31.5 billion in 2014. +20 New Mutual Funds Launched Through the Investment Managers Series Trusts, UMB Fund Services helped clients launch 20 new mutual funds in 2014. 24 Asset Servicing UMB Fund Services offers a broad array of services for mutual funds and alternative investments— as well as turnkey solutions to help our clients bring new products to market. $198.3B Total Assets Under Administration Includes fund clients receiving custody services from UMB Bank, n.a. $206.4B $179.3B $191.0B $198.3B $156.0B 10 11 12 13 14 #2 Ranked the 2nd largest U.S. Transfer Agency for closed-end mutual funds, based on number of accounts. 2014 Mutual Fund Service Guide Top Ten Transfer Agency service provider by number of accounts and by number of client firms. Top Ten Mutual Fund Accounting service provider by number of funds and by assets under administration. 2014 Mutual Fund Service Guide Top Workplace for the fifth straight year. Milwaukee Journal Sentinel Mutual Fund Services - Fund Accounting/ Administration - Transfer Agency - Distribution Services 1 - Custody2 - 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. Best Administrator “Best Administrator— Liquid Alternatives” HFMWeek’s 2014 US Hedge Fund Services Awards “Best North American Hedge Fund Administrator” 2014 Hedgeweek USA Awards Investment Managers Series Trust Assets Billions of Dollars $11.9 $6.4 $3.4 $1.6 $.72 10 11 12 13 14 Assets under administration in the Investment Managers Series Trusts grew to $11.9 billion in 2014. 12 10 8 6 4 2 0 +120% Private equity assets under administration increased 120 percent in 2014, from $2.96 billion to $6.51 billion. 25 $31.2B Scout Investments Assets Under Management Scout Investments ended 2014 with $31.2 billion total assets under management, increasing fixed income assets by $5.6 billion compared to 2013. +11.9% Total Assets Under Management Four-Year Compound Growth Rate Since the addition of Reams Asset Management in 2010, Scout’s AUM has grown from $19.9 billion to $31.2 billion. $4.1B Net Institutional Flows Scout Investments realized total net institutional flows in separate accounts of $4.1 billion in 2014. 26 A Global Institutional Asset Manager Scout Investments provides equity and fixed income strategies for institutional clients, investment professionals and individual investors. Active investment management expertise is at the core of our success. Total Assets Under Management Billions of Dollars Fixed Income Mutual Funds Fixed Income Institutional & Other Money Market Equity Institutional & Other Equity Mutual Funds Scout Equity Strategies - International Equity - International Equity ADR - Emerging Markets Equity - Global Equity - Equity Opportunity - Mid Cap Equity - Small Cap Equity Reams Fixed Income Strategies - Low Duration - Intermediate - Core - Core Plus - Long Duration - Unconstrained Client Assets by Type 35% Mutual Funds 18% Sub-Advisory 16% Public 16% Non-Profit / Other 9% Corporate 4% Endowment & Foundations 2% Taft-Hartley $19.9B $0.1B $10.2B $0.8B $0.6B $8.1B $19.7B $0.5B $10.3B $0.7B $8.2B $23.5B $0.8B $11.4B $0.9B $10.4B 10 11 12 13 $31.2B $2.8B $12.6B $3.2B $12.6B $31.2B $2.9B $18.1B $2.4B $7.8B 14 Top Contributor to Net Flows $2.8B Core Plus Bond Strategy UCITS Launched the Undertakings for Collective Investment in Transferable Securities (UCITS) fund umbrella structure to further expand distribution of Scout's strategies to non-U.S. investors. The UCITS Fund is managed like Scout’s Unconstrained Bond Strategy and is currently registered in the U.K., Luxembourg, Singapore and France. 33% Equity Assets 67% Fixed Income Assets Diversification of assets by product and distribution is central to Scout’s growth strategy. Scout continues to realize this goal by growing assets in its institutional separate account and commingled offerings. Launched the Equity Opportunity Fund in March 2014 27 SELECTED FINANCIAL HIGHLIGHTS 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 Dividends Declared Per Share Dollars Dollars .92% .92% .86% .89% .86% .89% 10.0% 9.8% 10.0% 9.8% 9.4% 9.4% $3.20 $3.20 $3.04 $3.04 .82% .82% .75% .75% 8.5% 8.5% $2.64 $2.64 $2.65 $2.65 $.75 $.75 $.91 $.91 $.87 $.87 $.83 $.83 $.79 $.79 7.5% 7.5% $2.26 $2.26 10 11 12 10 13 11 14 12 13 14 10 11 12 10 13 11 14 12 13 14 10 11 12 10 13 11 14 12 13 14 10 11 12 10 13 11 14 12 13 14 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 1.0 1.0 0.8 0.8 12 10 12 10 3.5 3.0 Return On Average Assets Return On Average Assets .92% .92% .86% .89% .86% .89% .82% .82% 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 10.0% 9.8% 10.0% 9.8% 9.4% 9.4% 0.6 0.6 $3.20 $3.20 $3.04 $3.04 .75% .75% 8.5% 8.5% $2.64 0.4 $2.64 $2.65 0.4 $2.65 7.5% 7.5% $2.26 $2.26 0.2 0.2 0.0 0.0 $.91 $.91 2.0 $.87 $.87 6 $.75 $.83 6 $.83 $.79 $.79 $.75 4 2 0 4 2 0 1.5 1.0 0.5 0.0 10 11 12 10 13 11 14 12 13 14 10 11 12 10 13 11 14 12 13 14 10 11 12 10 13 11 14 12 13 14 10 11 12 10 13 11 14 12 13 14 1.0 1.0 0.8 28 0.8 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 $ 2014 363,871 13,816 350,055 17,000 498,688 666,926 120,655 $ 2013 348,341 15,072 333,269 17,500 491,833 624,178 133,965 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 15,898,983 6,975,338 7,053,837 843,134 12,691,273 6,059 1,599,765 17,500,960 7,466,418 7,285,667 1,539,386 13,616,859 8,810 1,643,758 27,382 76,140 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 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 $ 2.69 2.65 0.91 33.83 % $ 36.10 $ $ 3.25 3.20 0.87 26.77 % 33.30 $ $ 3.07 3.04 0.83 27.04 % 31.71 $ $ 2.66 2.64 0.79 29.70 % 29.46 $ $ 68.27 51.87 56.89 65.44 43.27 64.28 52.61 37.68 43.82 45.20 30.49 37.25 2.27 2.26 0.75 33.04 % 26.24 44.51 31.88 41.44 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 0.75 % 7.54 0.89 % 10.02 0.92 % 9.75 0.86 % 9.35 0.82 % 8.53 1.02 0.37 13.29 14.04 8.72 1.15 0.47 13.61 14.43 8.90 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 Please refer to 10-K filing for additional information. 29 CONSOLIDATED BALANCE SHEETS Dollars in Thousands Except, Per Share and 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 $304,112 and $231,510 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 2014 $ 7,465,794 (76,140) $ 7,389,654 624 6,911,936 278,054 27,203 68,474 7,285,667 118,105 1,539,386 444,299 257,835 79,297 209,758 43,991 132,344 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 $ 17,500,960 $ 16,911,852 $ $ 5,643,989 6,709,281 424,925 838,664 5,189,998 7,001,126 491,792 957,850 13,616,859 13,640,766 2,025,132 - 8,810 180,074 26,327 1,583,218 107 5,055 153,450 23,191 15,857,202 15,405,787 Common stock, $1.00 par value; 80,000,000 shares authorized, 55,056,730 shares issued and 45,532,188 and 45,221,237 shares outstanding, respectively. Capital surplus Retained earnings Accumulated other comprehensive income Treasury stock, 9,524,542 and 9,835,493 shares, at cost, respectively Total shareholders' equity 55,057 894,602 963,911 11,006 (280,818) 1,643,758 55,057 882,407 884,630 (32,640) (283,389) 1,506,065 Total liabilities and shareholders' equity $ 17,500,960 $ 16,911,852 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: Taxable interest 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. 2014 2013 2012 $ 245,278 $ 229,665 $ 217,391 76,204 39,209 115,413 259 2,525 396 75,202 40,399 115,601 193 1,918 964 81,013 38,224 119,237 121 1,789 1,147 363,871 348,341 339,685 12,242 1,616 (42) 13,816 350,055 17,000 333,055 288,054 19,398 85,299 3,011 10,761 67,250 4,127 3,975 16,813 498,688 358,569 40,197 53,609 20,411 24,148 56,049 20,407 19,594 12,193 10,445 20,272 31,032 666,926 164,817 44,162 120,655 2.69 2.65 .91 44,844,578 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 $ $ $ $ 31 EXECUTIVE LEADERSHIP As of December 31, 2014 Dana Abraham President, Private Wealth Management Craig Anderson President, Commercial Banking Jim Cornelius President, Institutional Banking & Investor Services Peter deSilva President & Chief Operating Officer, UMB Financial Corporation; Vice Chairman, UMB Bank; Chairman, UMB Fund Services Todd Duncan President, Institutional Asset Management Tony Fischer President, UMB Fund Services Mike Hagedorn Vice Chairman, UMB Financial; President & Chief Executive Officer, UMB Bank, n.a. Darren Herrmann Executive Vice President, Treasurer Daryl Hunt Executive Vice President, Operations & Technology Group & Chief Administrative Officer Andy Iseman Chief Executive Officer, Scout Investments Brian Kaufman Managing Director, Prairie Capital Management Mariner Kemper Chairman & Chief Executive Officer, UMB Financial Corporation David Kling Executive Vice President, Chief Risk Officer Heather Miller Executive Vice President, Sales, Marketing & Communication Christine Pierson Executive Vice President, Consumer Services Maureen Quill Chief Operating Officer, UMB Fund Services Jim Sangster Vice Chairman, UMB Bank, n.a. Larry Smith Executive Vice President, Organizational Effectiveness & Chief Human Resources Officer Scott Stengel Executive Vice President, 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 EVP, Chief Financial Officer & Chief Accounting Officer, UMB Financial Corporation 32 BOARD OF DIRECTORS & ADVISORY BOARDS As of December 31, 2014 UMB Financial Corporation Warner L. Baxter 5, 6 President and CEO Ameren Missouri Thomas E. Beal 1 President Beal Properties, Inc. Nancy K. Buese 5, 6 Senior Vice President and CFO MarkWest Energy Partners, LP Peter J. deSilva 2 Vice Chairman UMB Bank, n.a. President and COO UMB Financial Corporation Terrence P. Dunn 3 CEO and President J.E. Dunn Construction Group, Inc. MGP Ingredient Board of Directors K.C. Gallagher 5, 6 Vice Chairman Gallagher Industries, Inc. Chief Executive Officer Little Pub Holdings, LLC Gregory M. Graves 3, 4 Chairman, CEO and President Burns and McDonnell Engineering Company, Inc. Michael D. Hagedorn 1, 2 Vice Chairman UMB Financial Corporation President and CEO UMB Bank, n.a. Alexander C. Kemper Chairman and CEO C2FO Chairman The Collectors Fund Mariner Kemper 2 Chairman UMB Bank, n.a. Chairman and CEO UMB Financial Corporation Kris A. Robbins 5, 6 Principal KARobbins, LLC Thomas D. Sanders 4, 6 Consultant to Senior Management MMC Corporation L. Joshua Sosland 3, 4 Vice President Sosland Companies, Inc. Paul Uhlmann III 3, 4 President The Uhlmann Company Thomas J. Wood III Investor UMB Bank, n.a. Craig L. Anderson President Commercial Banking UMB Bank, n.a. Greg S. Maday Chief Executive Officer SpecChem, LLC Patrick J. Crilly President Commercial Claims, Inc. Patrick J. McCown Chief Executive Officer McCown Gordon Construction Justin D. Hill President The Lawrence Paper Company Jonathan D. Mize President and COO Blish-Mize Company Donald G. Laffoon President and CEO Electrical Corporation of America Don R. Armacost, Jr. President and CEO Peterson Manufacturing Company Timothy R. Murphy President and CEO Murphy-Hoffman Company Steve J. McDonald President Geiger Ready Mix David F. Ball President and CEO Ball’s Price Chopper & Hen House Markets Steven J. Bresky President and CEO Seaboard Corporation Peter J. deSilva Vice Chairman UMB Bank, n.a. President and COO UMB Financial Corporation Jerry L. Garland President and CEO Associated Wholesale Grocers, Inc. Peter J. Genovese 1 UMB Consultant Michael D. Hagedorn Vice Chairman UMB Financial Corporation President and CEO UMB Bank, n.a. Marilyn B. Hebenstreit Vice Chairman Bartlett and Company Chairman Linda Hall Library Richard F. Jones President and CEO Fidelity Security Life Insurance Co. Alexander C. Kemper Chairman and CEO C2FO Chairman The Collectors Fund Mariner Kemper Chairman UMB Bank, n.a. Chairman and CEO UMB Financial Corporation Gordon E. Lansford III President and CEO JE Dunn Construction 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. Clyde F. Wendel Consultant Pintail Prairie Consultants UMB Advisory Boards Kansas City Region Kansas Rick S. Bennett Senior Vice President Consumer Services UMB Bank, n.a. 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. 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. 1Advisory Director 2Executive Committee 3Governance Committee 4Compensation Committee 5Audit Committee 6Risk Committee 33 Peter J. deSilva Vice Chairman UMB Bank, n.a. President and COO UMB Financial Corporation Alexander C. Kemper Chairman and CEO C2FO Chairman The Collectors Fund Mariner Kemper Chairman UMB Bank, n.a. Chairman and CEO UMB Financial Corporation Jonathan Lambert President Pacific Mutual Door Company Catherine Tivol Maslan Chief Executive Officer Tivol Plaza, Inc Chip Moxley President and CEO W.C. Tingle 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. ADVISORY BOARDS 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 Todd E. Bleakley Manager Bleakley Development Company, LLC 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 Vice Chairman UMB Bank, n.a. President and COO UMB Financial Corporation James Elder President MidContinental Chemical Company, Inc. Steven A. Erickson Community Bank President UMB Bank, n.a. 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 UMB Bank, n.a. Chairman and CEO UMB Financial Corporation David T. Raden President Tucker Midwest, Inc. 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, MO 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 34 Leo J. Nunnink Community Bank President Johnson/Wyandotte Counties UMB Bank, n.a. 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 Bank, n.a. Ricardo DeAvila Managing Director Alerion Capital Group LLC Peter J. Genovese UMB Consultant Frank Phillips Giltner III Senior Vice President Shamrock Foods Company Brian M. Goodwin Goodwin Consult LLC Mariner Kemper Chairman UMB Bank, n.a. Chairman and CEO UMB Financial Corporation K. David Lindner Partner Squire, Sanders & Dempsey, LLP Mark C. Loftin President Loftin Equipment Company & Bay City Electric Works ADVISORY BOARDS James S. Patterson Chairman and CEO Arizona Region UMB Bank, n.a. William Riley Chief Executive Officer Thermo King West Richard Trueblood Chief Financial Officer Advent Solar Colorado Region Craig L. Anderson President Commercial Banking UMB Bank, n.a. 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 Steve Hamline President – West Region J.E. Dunn Construction Company Robert G. Jaster Mariner Kemper Chairman UMB Bank, n.a. Chairman and CEO 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 Kevin F. Patterson Owner The Patterson Group Michael L. Raisch President Nuvola Solutions, Inc. Dean P. Pisciotta President Brakes Plus, Inc. Rose M. Robeson Jon M. Robinson Chairman and CEO Colorado Region UMB Bank, n.a. 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. Kenneth Huth Partner Huth Farms, LLC Marty L. James Chief Lending Officer Greater Missouri Region UMB Bank, n.a. Gill Jewett Retired Accountant and Farmer Tony Mayfield Chairman and CEO Greater Missouri Region UMB Bank, n.a. 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. Trent Stober, P.E. Vice President HDR Engineering Inc. 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 Tony Mayfield Chairman and CEO Greater Missouri Region UMB Bank, n.a. Debra K. McKenney Co-Owner Fort Scott Broadcasting CP Communications Gary A. Palmer Owner Captured Images Director of Development Fort Scott Community College David R. Shepherd President Shepherd Team Auto Plaza Ernest B. Staashelm Community Bank President West Central Missouri UMB Bank, n.a. Jefferson City, Missouri Carrie O. Tergin Owner/Manager Carrie’s Hallmark Shop William A. Crede Partner and CEO America Building Products James M. Cunningham III Community Bank President Central Missouri UMB Bank, n.a. F. Joe Delong III President Delong’s, Inc. Sherry L. Doctorian Partner Armstrong Teasdale LLP Carthage, Missouri Mark R. Gier Partner VSSI, Inc. Tony Mayfield Chairman and CEO Greater Missouri Region UMB Bank, n.a. William E. Michel Retired Veterinarian E. Elliott Potter General Partner Potter Family Limited Partnership Eric A. Reisinger Community Bank President Southwest Missouri UMB Bank, n.a. Peter Richardson Dr. Peter Richardson & Associates David G. Sanders Retired Grain Dealer Janet K. Stafford Community Bank President UMB Bank, n.a. Columbia, Missouri Charles P. Bondurant V, MD Physicians Resources, Inc. James M. Cunningham III Community Bank President Central Missouri UMB Bank, n.a. Susan L. Horak Owner/Broker RE Max Boone Realty Robert A. Hurdle Stephen C. Knorr Vice President Government Relations University of Missouri Tony Mayfield Chairman and CEO Greater Missouri Region UMB Bank, n.a. Jeffrey W. Parker, MD Columbia Orthopaedic Group George Pfenenger Chief Executive Officer Socket Telecom 35 ADVISORY BOARDS Robert L. Hawkins, Jr. Retired Lawyer Tony Mayfield Chairman and CEO Greater Missouri Region UMB Bank, n.a Bryan M. Pope, DDS Retired Dentist 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. Joplin, Missouri Ann Marie Baker President Greater Missouri Region UMB Bank, n.a. Rick Brown Dealer Roper Honda Robert W. Heiniger, Jr. President CES, Inc. Tony Mayfield Chairman and CEO Greater Missouri Region UMB Bank, n.a. Robert L. McKay Executive Vice President and CFO Mid-America Precision Products, LLC Kelli K. Norris Senior Business Development Specialist Mercy Hospital Eric A. Reisinger Community Bank President Southwest Missouri UMB Bank, n.a. Hal D. Roper President Roper GMC - Buick, Inc. Monett, Missouri 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 Tony Mayfield Chairman and CEO Greater Missouri Region UMB Bank, n.a. William H. Medlin Retired Howard F. Randall President General Investments, Inc. Eric A. Reisinger Community Bank President Southwest Missouri UMB Bank, n.a. Michael A. Scabarozi Vice President International Dehydrated Foods, Inc. North Central R.E. (Mike) Baker President Pepsi Cola Bottling of Brookfield James Brinkley Co-Owner Brinkley Angus Ranch S. Miles Dickson, DVM Co-Owner Highland Vet Clinic Ed Evans Community Bank President UMB Bank, n.a. Wayne A. Foster President Wayne Foster Farms, Inc. Tony Mayfield Chairman and CEO Greater Missouri Region UMB Bank, n.a. John M. Perry, DVM Hampton Feedlot, Inc. Robert D. Sloan, OD Managing Member Premier Eye Care Associates Phillip J. Smith Retired UMB Bank, n.a. Jennifer L. Waugh Jennifer L. Waugh, CPA Springfield, Missouri Ann Marie Baker President Greater 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 UMB Consultant John T. Gentry President and Chairman Positronic Industries Donald E. Golik Retired Chairman of the Board Paul Mueller Company Louis A. Griesemer President Springfield Underground, Inc. Brian K. Hammons President and CEO Hammons Products Company Tony Mayfield Chairman and CEO Greater Missouri Region UMB Bank, n.a. Alvin Rohrs President and CEO Enactus David A. Trottier Retired Chairman Summer Fresh Supermarkets, Inc. Douglas E. Mitchell Owner Legal Investigative Services, Inc. Ernest B. Staashelm Community Bank President West Central Missouri 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 Bill Bunch Chevrolet, 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. Stanfred L. Hilty Owner/Operator Hilty Farms Kenneth F. Kammeyer Retired UMB Bank, n.a. Tony Mayfield Chairman and CEO Greater Missouri Region UMB Bank, n.a James A. Miller Director/Owner Reser Funeral Home Davis-Miller Funeral Home John S. Wilson Community Bank President UMB Bank, n.a. Paul Ross Retired Paul Ross Farms Warrensburg, Missouri The Honorable Joe Dandurand Missouri Deputy Attorney General Tony Mayfield Chairman and CEO Greater Missouri Region UMB Bank, n.a Ernest B. Staashelm Community Bank President West Central Missouri UMB Bank, n.a. Martha M. Weaver Retired TRISTAR Sporting Arms, Ltd. 36 ADVISORY BOARDS 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 Jon H. Starks Community Bank President Salina & Abilene UMB Bank, n.a. Gil Trout Chairman and CEO Kansas and Oklahoma 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 Gil Trout Chairman and CEO Kansas and Oklahoma 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 and CEO Kansas and Oklahoma Region UMB Bank, n.a. David L. Urban Community Bank President Manhattan Banking Center UMB Bank, n.a. Russell, Kansas Wesley M. Clark Community Bank President Russell Banking Center UMB Bank, n.a. Christopher A. Howell President Western Kansas Region UMB Bank, n.a. Earl D. Merkel, MD Russell Regional Hospital Larry Schaffer President Chase Technology Kenneth L. Stielow President Bar S Ranch, Inc. Gil Trout Chairman and CEO Kansas and Oklahoma Region UMB Bank, n.a. Howard M. Wehrman President MHW Enterprises, Inc. Anthony H. Witt, Jr. Witt Farm Company Salina, Kansas 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 Salina & Abilene UMB Bank, n.a. Gil Trout Chairman and CEO Kansas and Oklahoma 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 Gil Trout Chairman and CEO Kansas and Oklahoma Region UMB Bank, n.a. Dan J. Waller Vice President Conco Construction Topeka, Kansas Nebraska Region Ronald D. Andersen President ANCO, Inc. Wayne F. Basso President Eastern Kansas Region UMB Bank, n.a. S. Lucky DeFries Stockholder Coffman, DeFries and Northern, P.A. 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 and CEO Kansas and Oklahoma 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. W. Thomas Chulick President Midwest Regions Chairman and 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. John D. Fonda Chairman and CEO John Day Company 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. 37 Pam Stanek President The Interior Design Firm Eric Stueckrath Chief Executive Officer Outlook Nebraska Oklahoma Region Oklahoma City, OK Craig L. Anderson President Commercial Banking UMB Bank, n.a. 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 Oklahoma Region UMB Bank, n.a. David R. Hardy CEO Oklahoma Region UMB Bank, n.a. Ralph L. Mason Senior Partner Mason-Harrison-Ratliff Tom J. McDaniel President American Fidelity Foundation William F. Shdeed Attorney at Law Roger N. Simons Chairman Simons Investment Company Gil Trout Chairman and CEO Kansas and Oklahoma Regions UMB Bank, n.a. Tulsa, OK Phil B. Albert President Pelco Structural, LLC Gentner F. Drummond Attorney at Law Drummond Law ADVISORY BOARDS Royce M. Hammons Chairman Oklahoma Region UMB Bank, n.a. David R. Hardy CEO Oklahoma Region UMB Bank, n.a. James C. Kneale Retired President and COO ONEOK, Inc. Scott A. Reeves Senior Vice President Tulsa Banking Center UMB Bank, n.a. Gil Trout Chairman and CEO Kansas and Oklahoma Region UMB Bank, n.a. John C. Viskup, Jr. CEO Victory Energy St. Louis Region 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. Peter Blumeyer President St. Louis Region UMB Bank, n.a. Louis G. Chiodini President Chiodini Associates W. Thomas Chulick President Midwest Regions Chairman and CEO St. Louis Region UMB Bank, n.a. Richard G. Engelsmann Chairman Beltservice Corporation Thomas F. Feldmann President and CEO Lionmark Construction Companies Peter J. Genovese UMB Consultant Carmen Jacob President NextGen Information Services, Inc. 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 Regional Chief Credit Officer UMB Financial Corporation Scott Negwer President Negwer Materials, Inc. Kathleen T. Osborn Executive Director Regional Business Council Rick Seiler President and CEO Seiler Instrument & Manufacturing Co., Inc. St. Louis, Missouri – County Megan P. Bittle Chief Operating Officer RSI Kitchen and Bath Peter Blumeyer President St. Louis Region UMB Bank, n.a. Vincent P. Bommarito Executive Chef Tony’s Restaurants, Inc. W. Thomas Chulick President Midwest Regions Chairman and CEO St. Louis Region UMB Bank, n.a. Peter J. Genovese UMB Consultant John M. Gunther President Gunther Salt Company Bart J. Margiotta President Priority Properties 38 June McAllister Fowler Vice President Corporate & Public Communications BJC HealthCare Tim M. Murch President MMMM David H. Naunheim Regional Chief Credit Officer UMB Financial Corporation Stephen E. Ricci President and CEO Ricci Associates, Inc. dba RAI Insurance Group Illinois John Bailey Founder Chad Nic Properties P. Douglas Becherer President Drs. Becherer & Associates, Ltd. Peter Blumeyer President St. Louis Region UMB Bank, n.a. Pamela A. Burnham President Von Alst Operating, LLC W. Thomas Chulick President Midwest Regions Chairman and 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 UMB Consultant Nick Gojmeric President/Owner GEN Properties Larry McCulley President and CEO Southern Illinois Healthcare Foundation David H. Naunheim Regional Chief Credit Officer UMB Financial Corporation Maurice E. Netemeyer President Aviston Lumber Company Thomas H. Renner, Jr. Owner Shiloh Valley Equipment Company/ Renner Stock Farms Donald P. Rigney Executive Vice President and COO Empire Comfort Systems, Inc. St. Charles, Missouri Gregory Aman Senior Vice President Private Banking Client Manager UMB Bank, n.a. Peter Blumeyer President St. Louis Region UMB Bank, n.a. W. Thomas Chulick President Midwest Regions Chairman and CEO St. Louis Region UMB Bank, n.a. Julia M. Eckstein Principal Health Care Advisory Services Brown Smith Wallace LLC Peter J. Genovese UMB Consultant David H. Naunheim Regional Chief Credit Officer UMB Financial Corporation Harlan Pals Chairman/Principal Pals Group Scott T. Rupp Commissioner Missouri Public Service Commission Kim Scheidegger York President - Commercial Leasing Corporate Group, Inc. Robert Topping Owner RT Management Services ADVISORY BOARDS 39 CORPORATE INFORMATION Notice of Annual Meeting Tuesday, April 28, 2015 UMB Financial Corporation 1010 Grand Boulevard Kansas City, MO 64106 10-K Request We will furnish, without charge, a copy of our 2014 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 396 tons of paper in 2014. This saved an estimated: 9,504 trees, 9,049,971 gallons of water, 761,035 pounds of solid waste and 12,892 BTUs of energy and 2,218,088 pounds of greenhouse gases. 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, 2014, 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”, 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 UMB Financial Corporation (NASDAQ: UMBF) Credit Ratings as of 02/17/15 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 842 UMB associates volunteered their time in 2014. $189K Estimated economic value of UMB associates’ volunteer hours in 2014. Based on the 2014 national value of volunteer time at $22.55 per hour, IndependentSector.org. 8,399 $353K Hours of qualified volunteer time off in 2014. Money donated in the Kansas City region alone in 2014. . c n I , s i s e n e G : n g i s e D d n a t p e c n o C | n o i t a r o p r o C l i i a c n a n F B M U 5 1 0 2 t h g i r y p o C © UMBFinancial.com 

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