More defines us
2015 ANNUAL REPORT
More Responsive
We believe listening is the key difference that sets us apart from the
competition and allows us to be more responsive and connected to our
customers. Our brand promise, Count on more, is at the core of everything
we deliver to our customers. We thrive on finding ways to help our
customers achieve their goals—whatever needs to be done, we will
make it happen.
More Focused
In 2015, we took a hard look at our company and its fundamentals. We seized
the opportunity to see how to do things better, to optimize our operations
and become even more focused on success. As a result, we identified
$32.9 million in cost savings. These savings—$9.5 million of which were
recognized in 2015—will be fully realized on an annual basis beginning in
2017. And we continue to be centered on growing our businesses in the
most efficient, healthy and profitable way possible, without compromising
our underlying values. We never make short-term decisions that will
negatively impact our customers or the long-term value of our franchise.
More Nimble
Our improved organizational alignment allows us to be more nimble as
we continue to grow. These changes help streamline decision-making and
improve communication, which results in a flatter, leaner and even more
competitive organization. What hasn’t changed? We make thoughtful
and swift decisions on loan approvals through a highly collaborative
process among our lenders across the footprint and executive leadership.
More Potential
More truly does define us and the way we work. Our diversified business
model is unlike any other in the industry. With more than 50 percent of our
revenue coming from our fee-based businesses, we believe this business
model makes us unique and ensures the long-term success of UMB.
More Committed
For more than 103 years, the commitment of every single associate
has driven UMB’s success. Every day, 3,830 hardworking, passionate
and engaged associates are committed to delivering bottom-line results
for our customers, communities, shareholders and one another.
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.
Revenue
Net Income
$ 537.1M
$ 59.8M
UMB Bank
$ 95.1M
$ 17.2M
$ 96.7M
$ 12.5M
UMB Fund Services
Scout Investments
UMB Fund Services
$ 149.6M
$ 26.6M
UMB Payment Solutions
2015 numbers as of December 31, 2015. 2014 numbers as of December 31, 2014.
Total Revenue
$878.5M
2014 $848.7M
Earnings Per Share
(Diluted)
$2.44
2014 $2.65
Market Cap
Total Assets
$2.3B
2014 $2.6B
5-Year Earnings Per
Share Growth
(CAGR) (Diluted)
+1.5%
2014 +3.8%
$19.1B
2014 $17.5B
Dividends Per Share
$0.95
2014 $.91
Investment
Assets Under
Management
$40.0B
2014 $42.8B
Price-to-Earnings Ratio
19.0
2014 21.5
Percentage Noninterest
Bearing Deposits
41.8%
2014 41.4%
Percentage Revenue
From Fees
53.1%
2014 58.8%
A
Our Footprint
We serve customers across the entire country.
Headquarters
UMB Bank Presence
Scout Investments
Prairie Capital
Fund Services
Payment Solutions
Healthcare Services
Corporate Trust / Institutional Asset Management
Private Wealth Management / Personal Trust
Meridian Bank / Meridian Bank Texas
Marquette Asset Management
Marquette Business Credit
Marquette Transportation Finance
NASDAQ
UMBF
UMB Financial
UMBFinancial.com
Headquarters
KC, MO
UMB Bank
UMB.com
Locations / ATMs
118/308
UMB Fund Services
UMBFS.com
Years in Business
103
Scout Investments
ScoutInv.com
Associates
3,830
Follow UMB
B
Industry
2015 median data as reported to SNL Financial
as of 02/17/16
UMBF
As of December 31, 2015
+14.7%
Dividend Growth
Full-year 2005 through full-year 2015.
1.15%
Nonperforming Loans To Total Loans
88.1%
Loan-To-Deposit Ratio
12.16%
Common Equity Tier 1 Capital Ratio
+26.3%
Noninterest Income Growth
During the past five years.
+108.8%
Dividend Growth
UMB increased its dividend 4.3 percent
in 2015, the 12th time in the past 10 years,
for a total increase of 108.8 percent.
0.65%
Nonperforming Loans To Total Loans
We continue to maintain strong asset
quality throughout a variety of
economic conditions.
62.5%
Loan-To-Deposit Ratio
We are in the business of lending money
and have plenty of liquidity to meet our
customers’ needs.
11.74%
Common Equity Tier 1 Capital Ratio
Our tier 1 capital ratio is well above
regulatory minimums.
+29.4%
Noninterest Income Growth
Our noninterest income over the last
five years outpaced the industry, again
demonstrating that our diversified business
model remains a competitive advantage.
C
MARINER KEMPER
Chairman, President and
Chief Executive Officer
What ‘more’ means to us
DEAR FELLOW SHAREHOLDERS,
In a time of rapid change and
challenging markets, people are
looking for more. They want more
than a megabank. More than a
mass-marketer of financial products.
More than a faceless institution.
Customers are looking for decision-
makers who know them and are
committed to them, and at UMB
we believe they deserve exactly that.
You can transact business anywhere,
but forming a relationship that
endures and grows is what sets
us apart.
We have uniquely positioned our
company to thrive in this environment
by delivering more. We have built a team
of experts and designed a diversified
array of services based on our associates’
passion to make our customers’ lives
better. Truly, more defines us. In 2015,
and moving into 2016, UMB has taken
important actions that enhance our
ability to create value for customers
and shareholders.
AMONG OUR 2015 MILESTONES
• We sharpened our focus to become
more efficient, identifying $32.9 million
in cost savings, to be fully realized on
2
an annual basis beginning in 2017—with
no compromise in customer service.
• We streamlined decision-making
and communication to become more
nimble. UMB is now leaner and even
more competitive.
• We expanded our potential for
growth by investing in key banking
markets, adding new specialty
finance businesses, and emphasizing
industry verticals.
Since my first shareholder letter after
becoming CEO in 2004, I’ve said that
UMB's promise, Count on more, means
our customers should receive a level of
service that exceeds their expectations
—that we truly do more than the
competition. This commitment is
unwavering. UMB’s culture is rich in
history, balanced with innovation and an
entrepreneurial spirit—sharing the values
and enthusiasm of our customers.
GROWING AND CHANGING
TO DELIVER MORE
While the headwinds of market
uncertainty have affected us, UMB’s
diversified financial services model
has proven its value over and over.
This sound strategy has delivered
excellent performance over the
Net Interest Income
Millions of Dollars
Noninterest Income
Millions of Dollars
$412
$350
$320
$333
$317
$499
$492
$466
$458
$414
Net Income
Millions of Dollars
$134
$123
$121
$116
$107
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
$412
$412
$350
$350
$320
$320
$333
$333
$317
$317
$499
$499
$492
$492
$466
$466
$458
$458
$414
$414
$134
$134
$123
$123
$121
$121
$116
$116
$107
$107
11
12
13
14
15
11
12
13
14
15
11
12
13
14
15
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14
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15
500
400
300
200
100
0
500
400
300
200
100
0
150
120
90
60
30
0
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120
120
90
90
60
60
30
30
0
0
500
500
500
500
300
400
300
400
long haul. When demand for banking
services slipped in the economic
slowdown a few years ago, our
fee-based businesses sustained
UMB’s income. In 2014 and 2015,
as volatile equity markets penalized
asset management income, our
banking segment has excelled—
producing strong results and
growth across UMB’s footprint.
200
100
200
100
0
0
In 2015, assets grew 9.1 percent with
UMB Bank leading the way, generating
double-digit increases in loans and
in the resulting net interest income.
Scout Investments and other asset
management-related services faced
a challenging year amid turbulent
markets, reducing fee-based income.
For the year, we reported diluted
earnings per share of $2.44, a
decrease of 7.9 percent.
300
400
400
300
• Net interest income grew
5.8 percent
• Noninterest income averaged
5.3 percent growth
• Book value per share grew
7.9 percent
• Dividends per share increased each
year, for a CAGR of 4.8 percent
200
100
200
100
0
0
EXECUTING ON A STRATEGIC
OPPORTUNITY
In the spring of 2015, we finalized the
acquisition of Marquette Financial
Companies, acquiring the two Meridian
Banks with a total of 13 branches in
the Phoenix-Scottsdale and Dallas-
Fort Worth areas, plus two national
specialty finance businesses and an
asset management firm. In 2016, we will
complete the integration by combining
teams in those markets and merging
operations and systems.
UMB’s performance record underscores
the long-term power of our business.
Over the past five years, we delivered
solid compound annual growth rates
(CAGR) across several key metrics:
• Average total assets grew at a
9.9 percent rate from 2010 to 2015
• Average loans increased at an
industry-leading 13.4 percent
I am very excited about our expanded
growth potential. Both markets are
larger than other cities in our footprint:
the population of the Dallas-Fort
Worth metropolitan area is approaching
7 million and the Phoenix-Scottsdale
area 4.5 million—which translates to
plenty of opportunity to expand our
market share.
3
JAN
APR
JUN
SEP
OCT
DEC
2015 Highlights
HSAs SURPASSED $1 BILLION
UMB Healthcare Services surpassed $1 billion in
health savings account (HSA) assets and deposits.
LAUNCHED APPLE PAY
Customers with iPhones can now use Apple Pay
with their UMB debit and credit cards, which
allows them to make payments securely with
one touch.
ACQUIRED MARQUETTE
UMB acquired Marquette Financial Companies
(MFC), a $1.4 billion financial-services company,
in an all-stock transaction. With this deal, UMB
acquired 13 branches in Arizona and Texas, two
national specialty lending businesses focused on
asset-based lending and factoring, as well as an
asset management firm.
LAUNCHED HSA INVESTMENT TOOL
UMB HSA Saver® is designed to provide HSA
accountholders with a simplified approach to
managing their HSA investment choices with a list
of funds available, which are vetted and chosen
by UMB’s Investment Management division.
NAMED TOP 40 FARM LENDER
Since 2014, the commercial Agribusiness
division expanded its focus, which influenced
UMB’s rise from among the top 50 U.S. farm
lenders to number 33 on the list, according
to American Bankers Association.
MOVED UMB MORTGAGE PRODUCTS IN-HOUSE
All UMB mortgage products and services were
brought in-house, including loan underwriting,
processing and closing.
4
Ten-Year Total Return
UMBF vs. SNL U.S. Banks Index and S&P 500
$ 200
$ 150
$ 100
$ 50
05
06
07
08
09
10
11
12
13
14
$202
$173
$94
15
UMBF SNL U.S. BANKS S&P 500
This summarizes the cumulative return experienced by UMBF shareholders for the years 2006 through 2015, com-
pared to the S&P 500 Stock Index and the SNL U.S. Banks Index. In all cases, the return assumes a
reinvestment of dividends. Source: SNL Financial
The two specialty lenders we acquired,
national platforms for factoring and
asset-based lending, also hold growth
potential. UMB’s lower cost of funds
makes these lenders more competitive
now. UMB commercial clients also can
benefit from additional financing
options, so we are building relationships
between UMB and Marquette lending
teams for cross-referrals. As a result,
in the second half of 2015, Marquette
Commercial Finance, a division of
Marquette Transportation Finance,
completed a $20 million accounts
receivable line of credit—the largest
in its history.
150
100
200
250
50
0
The Marquette acquisition was accretive
to UMB’s book value, but weighed on
2015 earnings because of transaction
and integration costs. We expect it
to be accretive to earnings in 2016.
We are also extremely pleased with the
quality of the people who have joined
the UMB family from the
Marquette companies. Our cultures fit
well together, promising a bright future.
GROWING ROBUSTLY AND
OPTIMIZING OUR BALANCE SHEET
The consistency of UMB’s loan growth
and the quality of our credit metrics
5
are hallmarks that endure through
the years. Despite what might be
going on around us, we have remained
true to our high-quality underwriting
standards in all environments.
The heart of UMB’s diversified business
is the bank, and the performance
of our banking team provided the
momentum for our growth in 2015.
Our industry-leading deposit and loan
growth came both organically from
UMB Bank and from our acquisition
of Marquette’s $1.4 billion financial
services business. At the same time,
we recognized a need for UMB to
become more efficient, so our teams
planned and began implementing
significant cost savings.
In 2015, total loans increased
26.3 percent to $9.4 billion at year end.
Lending by our legacy UMB teams
contributed 13.2 percentage points of
that growth, and the other half came
from the addition of Marquette’s loan
portfolio, along with loans generated
by legacy Marquette lenders, of
approximately $1 billion. In addition
to the substantial growth, our portfolio
is more diverse geographically and
by loan type.
“
The consistency of UMB’s loan growth
and the quality of our credit metrics are
hallmarks that endure through the years.
“
Two examples of how we expand
lending while sticking to sound credit
standards are industry verticals where
we recently increased our focus:
agribusiness and aviation. Given that
our footprint includes some highly
concentrated agricultural areas, we
have deliberately expanded our teams,
adding relationship officers with
expertise in dairy, food processing,
row-crop and seed production—
resulting in our agriculture loan totals
growing to more than $500 million.
In aviation, which many banks do not
understand or serve well, we have
added specialized expertise to build
relationships with private aircraft
owners and operators. Now they look
Nonperforming Loans
Our credit quality metrics
continue to outpace the industry.
3%
2%
1%
Industry Median 1.15%
11
12
13
14
15
UMBF 0.65%
Data from SNL Financial as of 12/31/15
6
to UMB both to finance their aircraft
and to meet other business needs.
We bring the same kind of customer
focus to all of UMB’s market segments.
Deposits also expanded both
organically and by acquisition,
standing at $15.1 billion at year end.
Legacy UMB deposits represented
$14.3 billion of that total, an increase
of 5.0 percent year-over-year, while
the acquisition of Marquette boosted
total deposits by $798.6 million.
A core strategy to deliver growth in
earnings is to optimize our balance
sheet, and we made strides in 2015
by shifting our mix of interest-earning
assets from securities, which offer low
yields in this environment, into loans,
which provide better returns. A key
balance sheet metric, loan-to-deposit
ratio, improved to 62.5 percent at year
end, from 54.8 percent a year earlier.
Net interest margin improved 15 basis
points to 2.64 percent for 2015.
Our low cost of funds is a powerful
competitive advantage in our lending
relationships, and our diversified
financial services model provides
an enduring source of low-cost
deposits that we believe will continue
to fuel profitable growth for our
banking business.
2015 Total Loan Growth
2015 Total Deposit Growth
+26.3%
+9.1%
2015 Total Asset Growth
As of December 31, 2015.
+10.8%
62.5%
2015 Loan-to-Deposit Ratio
TAKING ACTION AND ENHANCING
EFFICIENCY
Even as UMB continues to grow,
we recognize the need for more of
our revenue to make it to the bottom
line, and we took important actions
in 2015 to enhance operational
efficiency and reduce costs, particularly
on the banking side of our business.
In July and October, we announced
the details of our organizational
realignment and efficiency initiatives.
Our UMB teams delved into every
possible operational improvement,
listing and prioritizing changes to save
on expenses—always mindful to “do
no harm” to our customer experience,
which is paramount in driving UMB’s
long-term success. We expect this
company-wide effort to deliver
$32.9 million in expense reductions,
fully annualized beginning in 2017.
In 2015, we recognized $9.5 million
of these cost savings, running ahead
of schedule compared to the expected
$6.8 million of first-year savings we
had announced.
In 2015, our efficiency ratio was higher
than industry norms. Some of UMB’s
cost structure is higher because our
business is more diversified than the
average bank, but we are determined
to bring the overall efficiency ratio
down. Our goal is an efficiency ratio
of 70 percent, a milestone we believe
we can achieve.
And then we want to do more. Increasing
efficiency isn’t a one-time project.
Across the company, we will keep
identifying better ways of doing things
—an ongoing focus on growing in the
most efficient way possible to improve
UMB’s returns to shareholders.
BUILDING STRENGTH WITH
DIVERSITY
We have carefully built our business
model over the years to be different
from most banks. As a diversified
financial services company, our
multiple revenue streams from banking
and fee-based businesses give UMB
added stability to endure economic
cycles and fluctuations in financial
markets. In addition, these businesses
provide low-cost deposits for lending.
In 2015, we faced headwinds in our
institutional investment management
segment from volatility in the markets,
as well as from continued net outflows
driven by underperformance in the
Scout International Fund over the past
several quarters. Noninterest income
declined $32.2 million in 2015 from the
prior year, impacted mainly by lower
revenue from our Scout Investments
7
“
As a diversified financial services company,
our multiple revenue streams from banking
and fee-based businesses give UMB added
stability to endure economic cycles and
fluctuations in financial markets.
“
business and a decline in equity
earnings on alternative investments.
These challenging factors were
partially offset by robust 2015 growth
in revenue from our healthcare and
bankcard businesses, plus increased
gains on the sale of securities.
those investments. In addition, the mix
of Scout’s assets under management
shifted. Amid equity outflows, assets
in fixed income strategies remained
relatively stable, shifting our overall mix
to 22 percent equity and 78 percent
fixed income.
The diversified structure provided
noninterest income of $466.5 million
in 2015, 53.1 percent of UMB’s revenue
compared with $498.7 million or
58.8 percent of revenue in 2014.
The bank’s net interest income
increased by $62.0 million, nearly
double the $32.2 million drop in
noninterest income—and total
revenue from banking and fee-based
businesses increased $29.8 million.
FOCUSING ON TURNAROUND
IN INSTITUTIONAL INVESTMENT
MANAGEMENT
Our Scout Investments business was
impacted by the fluctuations in capital
markets and saw increased outflows
in 2015, particularly in our international
equity strategy. Scout assets under
management stood at $27.2 billion
at year-end 2015, down from
$31.2 billion a year earlier, and this
led to lower revenue from managing
We are focused on leveraging our
Scout distribution channels and
improving the performance of our
investment strategies, which is the
best way to stem future outflows
and ultimately return to net inflows.
Volatility in the markets also affected
UMB Fund Services, our asset servicing
2015 Healthcare Savings Deposits Growth
+39.5%
+36.8%
2015 Health Savings Accounts Growth
8
Diverse Income Revenue Streams
Revenue by Business Segment
11%
11%
17%
61%
Bank
Payment Solutions
Institutional Investment Management
Asset Servicing
grew 36.8 percent to 805,000 at year
end. Healthcare deposits increased
39.5 percent to $1.3 billion on
December 31, 2015, and total HSA
investment assets reached $118.3 million.
In 2015, we introduced a new tool
called the UMB HSA Saver,® designed
to provide accountholders a simplified
approach to managing investment
options within their HSAs. High
out-of-pocket healthcare costs often
strike during retirement, so we are
encouraging long-term, tax-advantaged
saving in HSAs—and offering step-
by-step guidance in managing the
investments. This innovative solution
adds to the customer experience
with an HSA from UMB.
Debit and credit card purchase
volumes in 2015 were $9.3 billion,
an increase of 10.2 percent from the
prior year, driving total interchange
revenue of $77.4 million. We remain
very enthusiastic about the prospects
of our healthcare and card businesses.
SETTING OUR OWN COURSE
Because of our strong entrepreneurial
heritage, we have never looked to
Washington, D.C. as the source of
47% 53%
53% Noninterest Income
47% Net Interest Income
business. While our various products
are seeing traction—for example,
our alternative investment servicing
team added 78 new funds during the
year—assets under administration fell
slightly in 2015, ending the year at
$185.6 billion.
Equity and fixed income markets are,
of course, hard to predict near term.
While we can’t predict the timing, we
expect improved performance over
time to impact net flows and asset
levels for our asset management and
servicing businesses, and ultimately
lead to increased revenue. For the
long haul, these businesses are
important components of UMB’s
diversified model.
CONTINUING MOMENTUM IN
HEALTHCARE AND CARD SERVICES
Our Payment Solutions segment
continues to drive strong volume
and revenue growth, as well as
providing low-cost deposits that
serve as a competitive advantage
for lending.
UMB Healthcare Services, once
again, soared in 2015: The number
of health savings accounts (HSAs)
9
2015 Book Value Per Share Growth
2015 Total Revenue Growth
+6.2%
+3.5%
2015 Total Purchase Volume Growth
2015 Net Interest Income Growth
+10.2%
+17.7%
stability or growth for UMB. Our
success will come from out-competing
our peers in banking and financial
services, and we are “all in” for meeting
challenges of the environment.
The business environment we face in
2016 offers the prospect of continuing
uncertainties in markets, uneven
growth in the economy and some
business sectors, and very gradual
moves by policymakers toward
normalization after seven years of
near-zero interest rates.
We will continue to take actions
to make UMB even more focused,
nimble and responsive to the needs
of our customers. Our business
model has proven that it works, and
now our organization is tuned up
to be more efficient and to execute
on UMB’s potential.
FOR 2016, WE HAVE OUTLINED
STRAIGHTFORWARD GOALS
• Continue to deliver the cost savings
and efficiency improvements we
began in 2015, as well as finding
additional enhancements to benefit
UMB’s bottom line.
• Fully integrate our Marquette
franchises into UMB’s banking
business, growing the combined
customer base, as well as looking
for additional opportunities.
• Maintain a strong capital position,
which provides the company access
to funding sources and enhances
our ability to capitalize on business
growth and acquisition opportunities.
• Continue to optimize the balance
sheet, leveraging our lending teams’
expertise to shift earning assets into
loans, increasing net interest margin
and income.
• Return to net inflows and increased
revenue via improved investment
performance and continued strong
distribution efforts.
• Sustain the robust growth of UMB
Healthcare Services and our credit
and debit card volumes and revenue.
• Always stay focused on providing
the unparalleled customer experience.
It’s who we are.
With a long runway for growth across
our diverse businesses, we believe UMB’s
commitment will maximize opportunities
to deliver more for customers and
shareholders in the years ahead.
10
“
Because of our strong entrepreneurial heritage,
we have never looked to Washington, D.C. as
the source of stability or growth for UMB. Our
success will come from out-competing our peers
in banking and financial services, and we are
‘all in’ for meeting challenges of the environment.
“
VALUING PEOPLE AND DOING
THE RIGHT THING
In closing, I would like to emphasize
that how we deliver more is all about
our 3,830 associates—and you. This
place is more than a financial institution.
It’s alive, with a heartbeat and personality,
because of our people. I feel it in
UMB’s offices all across the footprint—
including the newly acquired
businesses that joined us in 2015.
These outstanding associates are the
key to creating value for customers
and shareholders.
As part of our enduring culture, UMB
hires the best people and values them.
Our average tenure is more than eight
years, so bank customers don’t have
to get to know a new officer every six
months or “retrain their banker,” so to
speak. In business, when opportunity
knocks, an entrepreneur needs to take
action. So a customer’s relationship
with UMB means their banker or
relationship manager already knows
them and is ready to offer support.
with UMB, and many more years of
industry experience, to credit decisions,
so it is no accident that we maintain
best-in-class asset quality and risk
management practices. Our people
embrace the philosophy of doing the
right thing, not what is popular at the
moment. Tenure and expertise keep
our businesses focused on delivering
consistent performance.
Our team is resilient and entrepreneurial,
embracing the same spirit that gives
America its enduring strength. Our
customers appreciate this energy and
commitment. So our future is bright,
and we look forward to reporting
further progress in 2016 and beyond.
Thank you for your support of
UMB as a customer and shareholder.
We appreciate your trust.
Sincerely,
The deep experience of UMB’s team
also pays off for shareholders. For
example, our loan committee brings
an average of 19 years of experience
Mariner Kemper
Chairman, President and
Chief Executive Officer
March 1, 2016
11
UMB has consistently exhibited
loan growth, increasing total loans
by 26.3% percent at the end of 2015.
And, the growth of industrial
revenue bonds, classified as
held-to-maturity securities—
which increased from $278.1 million
at the end of 2014 to $667.1 million
in 2015—demonstrates the strength
of our balance sheet and our
diversified focus.
The acquisition of Marquette
Financial Companies has allowed
us to expand both our services and
our ability to reach new audiences
in high-growth markets, and this is
only the beginning of the benefits
we’ll see from this purchase.
Mike Hagedorn
Chief Executive Officer, UMB Bank n.a.
12
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.
Percentage Noninterest Income
56.2% Trust & Securities Processing
18.6% Deposit Service Charges
14.9% Bankcard Fees
4.3% Trading & Investment Banking
3.4% Other
2.5% Brokerage Fees
2.2% Gains on Securities Sales
0.5% Insurance Fees
Excludes -2.6% impact from equity earnings on alternative investments.
$14.1B
Average Total Deposits
$8.4B
Average Loans
$697M
2015 Q4 Loan Production
Average deposit growth
was 10.9 percent in 2015.
Average loans grew
20.8 percent in 2015.
Gross loan production
climbed to its highest
level ever in Q4 2015.
Loan Composition
Deposit Composition
Loan Composition
Deposit Composition
Loan Composition
Deposit Composition
Deposit Composition
Loan Composition
Loan Composition
Deposit Composition
Average Loans
Billions of Dollars
$8.4
$7.0
$6.2
$5.3
$4.8
11
12
13
14
15
120
100
80
60
40
20
0
45.1% Commercial & Industrial
45.1% Commercial & Industrial
28.3% Real Estate - Commercial
28.3% Real Estate - Commercial
7.7% Real Estate - HELOC
7.7% Real Estate - HELOC
5.2% Real Estate - Residential
5.2% Real Estate - Residential
4.4% Real Estate - Construction
4.4% Real Estate - Construction
3.1% Consumer Credit Card
3.1% Consumer Credit Card
2.3% Asset Based Loans
2.3% Asset Based Loans
1.6% Other Consumer
1.6% Other Consumer
1.3% Commercial Credit Card
1.3% Commercial Credit Card
1.0% Factoring Loans
1.0% Factoring Loans
49.9% Interest-Bearing Demand
49.9% Interest-Bearing Demand
and Savings Deposits
and Savings Deposits
41.8% Noninterest-Bearing
41.8% Noninterest-Bearing
Demand Deposits
Demand Deposits
8.3% Time Deposits
8.3% Time Deposits
45.1% Commercial & Industrial
45.1% Commercial & Industrial
28.3% Real Estate - Commercial
28.3% Real Estate - Commercial
7.7% Real Estate - HELOC
7.7% Real Estate - HELOC
5.2% Real Estate - Residential
5.2% Real Estate - Residential
4.4% Real Estate - Construction
4.4% Real Estate - Construction
3.1% Consumer Credit Card
3.1% Consumer Credit Card
2.3% Asset Based Loans
2.3% Asset Based Loans
1.6% Other Consumer
1.6% Other Consumer
1.3% Commercial Credit Card
1.0% Factoring Loans
1.3% Commercial Credit Card
1.0% Factoring Loans
13
49.9% Interest-Bearing Demand
49.9% Interest-Bearing Demand
and Savings Deposits
41.8% Noninterest-Bearing
and Savings Deposits
41.8% Noninterest-Bearing
During the past five
years, our average
loans have grown at a
13.4 percent compound
8.3% Time Deposits
annual growth rate.
Demand Deposits
Demand Deposits
8.3% Time Deposits
UMB Commercial Banking
UMB offers a diverse range of commercial banking solutions for discerning business customers
looking for personal attention and custom offerings. Our team is dedicated to helping clients grow
and succeed in the most efficient, healthy and profitable way possible.
$6.9B
Total commercial and
commercial real estate
loans as of 2015
Commercial & Industrial
Loans
Billions of Dollars
$4.2
$3.9
$3.3
$2.9
$2.2
$4.6
$4.2
$3.5 $3.6
$3.0
11
12
13
14
15
11
12
13
14
15
11
12
Healthcare Banking
UMB added a healthcare focus
across its regions, offering specialized
services including financing for medical
practices and healthcare facilities.
$181M
Total earning
asset growth
Comm Loans Region
Commercial Loans by Region
$2.7
$1.9
$1.7
$1.4
$1.4
13
14
39% Kansas City
15
11% Colorado
10% Arizona
10% St. Louis
8% Greater Missouri
8% Texas
7% Kansas
4% Oklahoma
3% Nebraska
$528M
$2.0B
Sales production
in new outstanding
loans
+21.2%
Growth in total
commercial
earning assets
UMB Agribusiness continues
to expand into new markets,
enhancing its solution set to
meet the financial needs of a
variety of ag-based businesses.
5
4
3
2
1
0
5
4
3
2
1
0
5
4
3
2
1
0
5
Commercial Real Estate
Loans
Billions of Dollars
4
$4.6
$4.2
$3.5 $3.6
$3.0
$4.2
$3.9
$3.3
$2.9
$2.2
$2.7
$1.9
$1.7
3
2
$1.4
1
$1.4
0
3.0
2.5
2.0
1.5
1.0
0.5
0.0
11
12
13
14
15
11
12
13
14
15
11
12
13
14
15
Agribusiness loans grew
91.3 percent in 2015.
3.0
2.5
2.0
.65%
1.5
Nonperforming loan
ratio versus the industry
average of 1.15 percent
1.0
0.5
Data from SNL Financial as
of 02/17/16
0.0
14
$11.6B
Corporate trust assets
under administration as
of December 31, 2015
#33
U.S. Banks for farm lending
Source: ABA, as of Septemeber 31, 2015
Top 25
U.S. banks for Automated
Clearing House origination
Source: NACHA
Average Commercial
Deposits
Billions of Dollars
$4.6
$4.2
$3.5 $3.6
$3.0
11
12
13
14
15
Commercial deposits
increased 8.9 percent
in 2015.
5
4
3
2
1
0
“
$2.9
WE ARE INSPIRED BY THE
SUCCESS WE'VE SEEN ACROSS
$2.7
$4.2
$3.9
THE COMMERCIAL DIVISION,
$1.9
$3.3
AND LOOK FORWARD TO
GROWING OUR BUSINESS
$2.2
$1.4
$1.4
WITH NEW VERTICAL MARKETS
AND ASSET-BASED LENDING
14
15
14
13
12
12
11
11
$1.7
“
15
13
AND FACTORING.
CRAIG ANDERSON
President, Commercial Banking
5
4
3
2
1
0
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Marquette Transportation Finance
assists trucking industry businesses
in meeting working capital needs
through accounts receivable solutions.
Marquette Business Credit provides
financing to businesses across the U.S.
$89.2M
In new loan commitments in 2015
$130.5M
In new loan commitments in 2015
15
UMB Personal Banking
UMB offers financial solutions to customers who value an individualized relationship and
advisory experience. For more than a century, we’ve invested in our people as a resource
who can help clients achieve their unique financial and lifestyle goals.
#1
Kansas City market share
leader in deposits for the
fifth year in a row at
more than 18.7 percent
“
BRINGING OUR CONSUMER AND PRIVATE
WEALTH MANAGEMENT DIVISIONS UNDER
ONE PERSONAL BANKING UMBRELLA IS
AN OPPORTUNITY TO BETTER SERVE
OUR CLIENTS. WITH THIS HOLISTIC VIEW,
I BELIEVE WE CAN BETTER MEET THEIR
EVER-CHANGING NEEDS NOW AND IN
THE FUTURE.
“
Source: FDIC 2015 Market Share Report
DANA ABRAHAM
President, Personal Banking
+17.9%
Total consumer and small
business loan growth in 2015,
more than $500 million
118
Consumer branch locations,
including Meridian Bank
In 2015, UMB brought all
mortgage products and
services in-house, including
loan underwriting,
processing and closing.
In alignment with UMB’s
commitment to excellent
customer service, our new
mortgage team will draw
on more than 200 years
of collective experience
to deliver a world-class
mortgage process.
$4.2B
Total consumer and small
business deposits grew
14.9% in 2015.
9.8%
Of all deposits were made
at an ATM, totaling more
than 6 million transactions.
With the acquisition of the Meridian Banks, UMB now has 13
additional banking centers in Arizona and Texas combined.
$402.9M
In total deposits at the end
of 2015
$51.4M
In total outstanding loans
at the end of 2015
Numbers are combined consumer year-end loan and deposit totals from both
Meridian Bank and Meridian Bank Texas.
16
In 2015, UMB launched
a project to enhance
its customer experience
through new branch
interiors and exteriors.
UMB Private Wealth Management
UMB focuses 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.
Your Story. Our Focus.®
Private Banking
Focuses on You
Investment Management
Built for Your Needs
Personal credit and banking
solutions customized for
your financial goals and fit
for your lifestyle.
Our research-driven in-
vestment options, backed
by experienced portfolio
managers, deliver tailored
strategies that meet your
long-term goals.
Trust and Lifestyle
Management Requires
Experience
Our advisors understand the
value of protecting and grow-
ing your hard-earned assets.
Discover how they can help
you manage your legacy.
Managing Risk
Creates Confidence
Protect your legacy with a
comprehensive risk manage-
ment strategy that ensures
you can support your loved
ones for years
to come.
“
“
UMB STAFF ARE RESPONSIVE, FORTHRIGHT,
FRIENDLY, AND CAN BE COUNTED ON TO
PROVIDE MEANINGFUL GUIDANCE AND
SOLUTIONS TO ALL MANNER OF BANKING
ACTIVITIES.
T. FRIES
Private Wealth Management Client
THERE ARE MANY KNOWLEDGEABLE
FINANCIAL PLANNERS; HOWEVER,
UMB'S ADVISORS ALSO HAVE PERSONAL
AND CARING PERSONALITIES.
R. KALBFLEISCH
Private Wealth Management Client
“
“
Assets Under Management
by Type
Excluding Scout Investments
56% Investment Advisory
30% Trust
8% Charitable
4% IRA
2% Other
Assets Under Management
Billions of Dollars
Excluding Scout Investments
$10.29B
$0.35B
$2.85B
$8.84B
$0.23B
$2.22B
$11.67B
$0.42B
$3.60B
$12.79B
$0.68B
$0.42B
$3.71B
$6.39B
$7.08B
$7.65B
$7.98B
$7.59B
$0.19B
$2.04B
$5.37B
11
12
13
14
15
Marquette Asset Management (acquired June 2015)
Brokerage Assets
Prairie Capital Management
Private Wealth & Institutional Asset Management
17
+37%
Year-over-year average
loan growth in 2015
UMB Payment Solutions
UMB Healthcare Services is a top
ten health savings account (HSA)
provider 1 in the U.S. This is an
exciting time for us since we have
strong growth compared to the
industry. At the end of 2015,
our total number of HSAs had
increased to more than 805,000
and our deposits and assets
increased to a record $1.3 billion.
We are proud to offer exceptional
healthcare payment solutions to our
clients and accountholders, while
focusing on educating everyone
on how to maximize HSA benefits.
As part of that, we launched UMB
HSA Saver,® a powerful tool that
provides accountholders a simplified
approach to investing in their HSA.
Begonya Klumb
Chief Executive Officer, UMB Healthcare Services
1Source: Devenir, 2015 Midyear Devenir HSA Research Report
18
The Tools to Succeed
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 $9.3 billion in 2015,
continuing the positive trend from $4.3 billion in 2010.
$9.33B
$8.47B
$1,292
$918
$642
$431
$323
$1.55
$1.40
$1.26
$1.17
$1.04
4.35
3.60
3.08
1.81
2.47
Other
Private Label Credit
Retail Credit
Commercial Credit
Retail Debit
$0.15
$0.15
$0.78
$1.04
$1.40
$1.72
$5.22B
$5.81B
$6.79B
$0.12
$0.07
$0.76
$1.55
$1.56
$5.27
11
12
13
14
15
11
12
13
14
15
10
Healthcare Debit
14
13
12
11
11
12
13
14
15
1500
1200
900
600
300
0
2.0
1.5
1.0
0.5
0.0
$1,292
$918
$642
$431
$323
11
12
13
14
15
5
4
3
2
1
0
1500
1200
900
7.5M
600
300
0
Commercial credit card
transactions grew from
7.2 million in 2014 to
7.5 million in 2015.
Health Savings Account
Deposits & Assets
Millions of Dollars
$5.3B
Total Healthcare related
$1.55
purchase volume
$1.26
10
$1.40
$1,292
$1.17
$1.04
$918
8
$642
$323
6
$431
5.2M
4
11
12
Healthcare spending
13
14
11
14
12
15
2
account cards (excludes
single use cards)
13
15
0
Commercial Cardholder
Purchase Volume
Billions of Dollars
4.35
$1.55
$1.40
$1.26
10
3.08
3.60
$1.17
8
2.47
$1.04
1.81
6
4
4.35
3.60
3.08
$5.81B
$6.79B
$5.22B
2.47
1.81
$0.15
$0.15
$0.78
$1.04
$1.40
$1.72
$9.33B
$8.47B
$9.33B
$8.47B
$6.79B
$5.81B
$1.56
$5.22B
$0.12
$0.07
$0.76
$1.55
$5.27
$0.12
$0.07
$0.76
$1.55
$1.56
$5.27
10
11
2
12
11
13
12
14
13
14
15
10
11
12
13
14
11
12
13
14
11
15
12
13
14
15
0
$0.15
$0.15
$0.78
$1.04
$1.40
$1.72
10
8
6
4
2
0
“
1200
1500
900
2.0
1.5
WE CONTINUE TO GROW OUR CARD
PRODUCT OFFERINGS, WHICH HELPS
5
2.0
KEEP US COMPETITIVE. IN FACT,
WE ACHIEVED A NEW RECORD
1.5
4
IN CREDIT AND DEBIT PURCHASE
3
1.0
1.0
VOLUME IN 2015, REACHING
600
2
0.5
$9.3 BILLION, AN INCREASE
0.5
300
1
OF 10.2% COMPARED TO 2014.
“
0.0
0
0
0.0
JOHN GILLARD
EVP/Executive Director, Payment Solutions
19
10
8
6
4
2
0
5
4
3
2
1
0
10
8
6
4
2
0
10
8
6
4
2
0
In 2015, UMB Fund Services
celebrated 25 years in business.
The year was undoubtedly a
challenging one—for the financial
markets, for us, and for our clients
—yet in many ways we finished
stronger than we started.
Top-line sales were strong, and
despite headwinds, our assets
under administration increased
in several product categories.
We helped clients start 16 new
mutual funds through our popular
series trusts, celebrated early
results with a new efficiency project,
and fine-tuned our strategic plan
to take us into the next decade.
Tony Fischer
President, UMB Fund Services
20
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.
Total Assets Under Administration
Includes fund clients receiving custody services
from UMB Bank, n.a.
$206.4B
$191.0B
$198.3B
$185.6B
$156.0B
11
12
13
14
15
READY TO FACE
“ “WE ENTER 2016
NEW CHALLENGES
FROM A POSITION
OF STRENGTH.
TONY FISCHER
President, UMB Fund Services
Top Ten Overall
- Transfer Agent
- Fund Accountant
#1 Transfer Agent
for U.S. closed-end mutual
funds, based on number
of accounts
2015 Mutual Fund Service Guide
Top Workplace
for the sixth straight year
Milwaukee Journal Sentinel
25 Years
In 2015, UMB Fund Services
celebrated 25 years in
business serving the needs of
fund companies from its four
office locations across the
country.
+20.6%
Alternative investment
assets under administration
grew from $31.5 billion in
2014 to $38.1 billion in 2015,
an increase of 20.6 percent.
Investment Managers
Series Trust Assets
Billions of Dollars
$12.8
$11.9
$6.4
$3.4
$1.6
11
12
13
14
15
Assets under administration in
the Investment Managers Se-
ries Trusts grew to
$12.8 billion in 2015. We helped
clients launch 16 new mutual
funds through the Trusts.
15
12
9
6
3
0
+57.1%
Private equity assets
under administration
increased 57.1 percent
in 2015, from $8.4 billion
in 2014 to $13.2 billion
(includes both registered
and unregistered funds).
21
At Scout Investments, we are
selective about asset management.
We provide actively managed
investment strategies with clearly
articulated and consistently
applied investment processes.
Together with our focused
distribution and proactive client
engagement strategies, we
believe our firm is in the best
position for long-term success.
As we enter 2016, our commitment
to this effort remains unwavering.
Andy Iseman
Chief Executive Officer, Scout Investments
22
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
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
$23.5B
$0.8B
$11.4B
$0.9B
$10.4B
$19.7B
$0.5B
$10.3B
$0.7B
$8.2B
$31.2B
$2.8B
$12.6B
$3.2B
$12.6B
$31.2B
$2.9B
$18.1B
$2.4B
$7.8B
11
12
13
14
$27.2B
$2.4B
$18.9B
$2.0B
$3.9B
15
Assets Under Management
$27.2B
As of 12/31/15
3 Years
In 2015, both the Scout
Emerging Markets Fund
and the Scout Low Duration
Bond Fund reached their
three-year anniversary.
“
ALTHOUGH 2015 WAS A CHALLENGING
MARKET ENVIRONMENT, LOOKING
AHEAD, WE BELIEVE REMAINING
STEADFAST IN OUR EFFORTS WILL
RESULT IN LONG-TERM GROWTH.
“
ANDY ISEMAN
Chief Executive Officer, Scout Investments
$ 6.3B Mutual Funds
$ 5.4B Sub-Advisory
$ 4.8B Public
$ 4.8B Non-Profit / Other
$ 4.0B Corporate
$ 1.4B Endowment & Foundations
$ 0.5B Taft-Hartley
23
In the past year, UMB experienced
record-setting events that
demonstrate our ability to grow even
in challenging economic climates.
• For the first time, we exceeded $15 billion
in total deposits with 10.8 percent
annual growth.
• Net interest income for 2015 grew 17.7 percent
to reach a record high of $412.1 million.
• Loan growth reached 26.3 percent in 2015,
one of our highest yet, and fourth quarter
represented our 23rd consecutive quarter
of increasing loan balances.
• In the past five years, our shareholder equity
increased 78.5 percent (12.3 percent CAGR).
Paired with the strides we have
taken to increase efficiency,
including identifying cost savings
of $32.9 million,1 these achievements
help position us for steady growth
in 2016 and beyond.
1To be fully realized on an annual basis in 2017.
24
SELECTED FINANCIAL HIGHLIGHTS
Dividends Declared Per Share
Dividends Declared Per Share
Dollars
Dollars
$.95
$.95
$.91
$.91
$.87
$.87
$.83
$.83
$.79
$.79
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
.92%
.89%
.92%
.89%
.86%
.86%
9.8% 10.0%
9.8% 10.0%
9.4%
9.4%
$3.20
$3.20
$3.04
$3.04
.75%
.75%
.65%
.65%
7.5%
7.5%
$2.44
$2.44
$2.64
$2.64
$2.65
$2.65
6.4%
6.4%
11
12
13
11
14
12
15
13
14
15
11
12
13
11
14
12
15
13
14
15
11
12
13
11
14
12
15
13
14
15
11
12
13
11
14
12
15
13
14
15
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
10
8
10
8
3.5
3.0
Return On Average Assets
.75%
.75%
.65%
.65%
Return On Average Assets
Return On Average Equity
Return On Average Equity
Diluted Earnings Per Share
Diluted Earnings Per Share
Dollars
Dollars
Dividends Declared Per Share
Dollars
Dividends Declared Per Share
Dollars
2.5
.92%
.89%
.92%
.89%
.86%
.86%
9.8% 10.0%
9.8% 10.0%
9.4%
9.4%
0.6
0.6
$3.20
$3.20
$3.04
$3.04
6
6
$.95
$.95
2.0
$.91
$.91
$.87
$.87
$.83
$.83
7.5%
7.5%
$2.44
$2.44
$2.64
0.4
$2.65
$2.64
0.4
$2.65
$.79
4
$.79
4
6.4%
6.4%
0.2
0.2
0.0
0.0
2
0
2
0
1.5
1.0
0.5
0.0
11
12
13
11
14
12
15
13
14
15
11
12
13
11
14
12
15
13
14
15
11
12
13
11
14
12
15
13
14
15
11
12
13
11
14
12
15
13
14
15
1.0
1.0
0.8
0.8
25
1.0
1.0
10
10
0.8
0.8
8
6
4
2
0
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
SELECTED FINANCIAL HIGHLIGHTS
Five-Year Total Return
UMBF vs. SNL U.S. Banks Index and S&P 500
$ 150
$ 100
$ 50
10
$102
$92
$77
11
$164
$157
$144
$178
$160
$147
$181
$163
$123
$119
$110
$105
12
13
14
15
UMBF SNL U.S. Banks S&P 500
This summarizes the cumulative return experienced by UMBF shareholders for the years 2011 through 2015,
compared to the S&P 500 Stock Index and the SNL U.S. Banks Index. In all cases, the return assumes a
reinvestment of dividends. Source: SNL Financial
UMBF Total Assets
Under Management
Billions of Dollars
UMBF Total Assets
Under Management
Billions of Dollars
Risk-Based
Capital Ratios
Risk-Based
Capital Ratios
$42.8
12.8%
12.8%
$40.0
11.7%
11.9%
11.7%
11.9%
9.1%
9.1%
8.0%
8.0%
6.0%
6.0%
4.5%
4.5%
4.0%
4.0%
$41.4
$41.4
$42.8
$40.0
200
$32.3
$32.3
$27.3
$27.3
150
100
50
11
12
13
11
14
12
15
13
14
15
Common
Equity Tier 1
Capital
Tier 1
Common
Capital
Equity Tier 1
Capital
Total
Capital
Tier 1
Capital
Tier 1
Leverage
Total
Capital
Tier 1
Leverage
Regulatory Minimum UMB
Regulatory Minimum UMB
50
40
30
20
10
50
40
30
20
10
26
15
12
9
6
3
15
12
9
6
3
FIVE-YEAR FINANCIAL SUMMARY
Dollars In Thousands Except Per Share Data
Earnings
Interest income
Interest expense
Net interest income
Provision for loan losses
Noninterest income
Noninterest expense
Net income
Average Balances
Assets
Loans, net of unearned interest
Securities
Interest-bearing due from banks
Deposits
Long-term debt
Shareholders’ equity
Year-End Balances
Assets
Loans, net of unearned interest
Securities
Interest-bearing due from banks
Deposits
Long-term debt
Shareholders’ equity
Nonperforming loans
Allowance for loan losses
Per Share Data
Earnings - basic
Earnings - diluted
Cash dividends
Dividend payout ratio
Book value
Market price
High
Low
Close
Ratios
Return on average assets
Return on average equity
As a % of loans:
Allowance for loan losses
Nonperforming loans
Risk-based capital ratio:
Common Equity Tier 1
Tier 1
Total
Average equity to average assets
$
2015
430,681
18,614
412,067
15,500
466,454
703,736
116,073
$
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
$ 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
17,786,442
8,425,107
7,330,246
664,752
14,078,290
57,321
1,805,856
19,094,245
9,431,350
7,568,870
522,877
15,092,752
86,070
1,893,694
61,206
81,143
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
$
$
2.46
2.44
0.95
38.62 %
38.34
58.84
45.14
46.55
0.65 %
6.43
0.86
0.65
11.74
11.86
12.80
10.15
$
$
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
$
$
68.27
51.87
56.89
65.44
43.27
64.28
52.61
37.68
43.82
0.75 %
7.54
0.89 %
10.02
0.92 %
9.75
0.86 %
9.35
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
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
2.66
2.64
0.79
29.70 %
29.46
45.20
30.49
37.25
Please refer to 10-K filing for additional information.
27
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 $691,379 and $304,112 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 $250,000
Time deposits of $250,000 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
2015
2014
$
9,430,761 $
(81,143)
7,465,794
(76,140)
9,349,618
7,389,654
589
624
6,806,949
667,106
29,617
65,198
7,568,870
173,627
522,877
458,217
281,471
90,127
228,346
46,782
373,721
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
$
19,094,245 $
17,500,960
$
6,306,895 $
7,529,972
771,973
483,912
5,643,989
6,709,281
636,507
627,082
15,092,752
13,616,859
1,818,062
5,009
86,070
161,245
37,413
2,025,132
-
8,810
180,074
26,327
17,200,551
15,857,202
Common stock, $1.00 par value; 80,000,000 shares authorized, 55,056,730 shares
issued and 49,396,366 and 45,532,188 shares outstanding, respectively
Capital surplus
Retained earnings
Accumulated other comprehensive income
Treasury stock, 5,660,364 and 9,524,542 shares, at cost, respectively
Total shareholders' equity
55,057
1,019,889
1,033,990
(3,718)
(211,524)
1,893,694
55,057
894,602
963,911
11,006
(280,818)
1,643,758
Total liabilities and shareholders' equity
$ 19,094,245
$ 17,500,960
Please refer to 10-K filing for additional information.
28
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
Contingency reserve
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.
2015
2014
2013
$ 308,325
$
245,278
$
229,665
75,327
43,598
118,925
697
2,356
378
76,204
39,209
115,413
259
2,525
396
75,202
40,399
115,601
193
1,918
964
430,681
363,871
348,341
14,269
1,785
2,560
18,614
412,067
15,500
396,567
262,056
20,218
86,460
2,530
11,753
69,211
10,402
(12,188)
16,012
466,454
406,472
43,861
63,533
18,579
23,730
51,328
26,390
20,288
12,090
12,125
-
25,340
703,736
159,285
43,212
116,073
2.46
2.44
.95
47,126,252
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
$
$
$
$
29
EXECUTIVE LEADERSHIP
As of December 31, 2015
Tony Fischer
President,
UMB Fund Services
Mike Hagedorn
Chief Executive Officer,
UMB Bank
Andy Iseman
Chief Executive Officer,
Scout Investments
Shannon Johnson
Executive Vice President,
Chief Human Resources Officer
Mariner Kemper
Chairman, President and
Chief Executive Officer,
UMB Financial Corporation
David Kling
Executive Vice President,
Chief Risk Officer
Kevin Macke
Executive Vice President,
Operations
Heather Miller
Executive Vice President,
Sales, Marketing Communication
Jenny Payne
Senior Vice President
and Director,
Corporate Risk Services
Scott Stengel
Executive Vice President,
General Counsel
Chris Swett
Executive Vice President,
Chief Credit Officer
Tom Terry
Chief Lending Officer
Brian Walker
Executive Vice President,
Chief Accounting Officer
30
BOARD OF DIRECTORS
Jonathan D. Mize
President and COO
Blish-Mize Company
To view a full list of UMB’s
advisory boards, visit
UMB.com/AdvisoryBoards
Timothy R. Murphy
President and CEO
Murphy-Hoffman Company
H. Tyler Nottberg
Chief Executive Officer
US Engineering
Douglas F. Page 1
Executive Vice President
UMB Bank, n.a.
Stephen R. Plaster
Chairman & CEO
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 Financial Corporation
UMB Bank, n.a.
Thomas E. Beal 1
President
Beal Properties, Inc.
Robin C. Beery 2,4
Investment Industry Executive
Consultant
Nancy K. Buese 2,5
Executive Vice President and CFO
MPLX LP
Terrence P. Dunn 3
Director
J.E. Dunn Construction Group, Inc.
K.C. Gallagher 2,5
Chairman
Gallagher Industries, LLC
Chief Executive Officer
Little Pub Holdings, LLC
Gregory M. Graves 3,4
Chairman, CEO and President
Burns and McDonnell
Craig L. Anderson
President
Commercial Banking
UMB Bank, n.a.
Don R. Armacost, Jr.
President and CEO
Peterson Manufacturing Company
David F. Ball
President and CEO
Ball’s Price Chopper
& Hen House Markets
Steven J. Bresky
President and CEO
Seaboard Corporation
Peter J. Genovese 1
UMB Consultant
Michael D. Hagedorn 1
President and CEO
UMB Bank, n.a.
Vice Chairman and
Engineering Company, Inc.
Interim Chief Financial Officer
Michael D. Hagedorn 1
President and CEO
UMB Bank, n.a.
Vice Chairman and
UMB Financial Corporation
Marilyn B. Hebenstreit
Vice Chairman
Bartlett and Company
Interim Chief Financial Officer
Chairman
UMB Financial Corporation
Linda Hall Library
Alexander C. Kemper
Chairman and CEO
C2FO
Richard F. Jones
President and CEO
Fidelity Security Life Insurance Co.
Mariner Kemper
Chairman
UMB Bank, n.a.
Chairman, President and CEO
UMB Financial Corporation
Kris A. Robbins 2,5
Principal
KARobbins, LLC
L. Joshua Sosland 3,4
President
Sosland Publishing Co.
Paul Uhlmann III 3,4
President and CEO
The Uhlmann Company
Thomas J. Wood III 1
Investor
Alexander C. Kemper
Chairman and CEO
C2FO
Mariner Kemper
Chairman
UMB Bank, n.a.
Chairman, President and CEO
UMB Financial Corporation
Gordon E. Lansford III
President and CEO
JE Dunn Construction
Greg S. Maday
Chief Executive Officer
SpecChem, LLC
Patrick J. McCown
Chief Executive Officer
McCown Gordon Construction
1Advisory Director 2Risk Committee 3Governance Committee 4Compensation Committee 5Audit Committee
31
CORPORATE INFORMATION
Notice of Annual Meeting
Tuesday, April 26, 2016
UMB Financial Corporation
1010 Grand Boulevard
Kansas City, MO 64106
10-K Request
We will furnish, without charge,
a copy of our 2015 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
UMBFinancial.com
Stock Quotation Symbol
UMBF
NASDAQ OMX
Investor Relations
Kay Gregory
Vice President,
Investor Relations
Financial Information
Brian Walker
Executive Vice President,
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 more than 336 tons of paper
in 2015. This saved an estimated: 8,078 trees, 7,692,476 gallons
of water, 646,880 pounds of solid waste, 10,958 BTUs of
energy and 1,885,375 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, 2015, 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.
32
A FOCUS ON QUALITY
UMB Financial Corporation (NASDAQ: UMBF) Credit Ratings as of 02/17/16
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+ / Negative
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
937
UMB associates volunteered their
time in 2015.
$220K
Estimated economic value of UMB
associates’ volunteer hours in 2015
Source: Independent Sector
9,540
$550K
Hours of qualified volunteer time
off in 2015
Money donated in the Kansas City
region alone in 2015
.
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©
UMBFinancial.com