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