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Monthly Media Update – July

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NPR discusses the fears of a emerging farm crisis with our ag division, CNBC Powerlunch and Bloomberg Radio talk to UMB’s CIO, our Colorado Springs community bank president supports the city’s downtown redevelopment, and why hospitals are spending millions of dollars developing electronic health records are a few media coverage highlights from July.

Stay informed on industry trends and noteworthy company news by visiting our UMB in the News section on umb.com, which is updated weekly for timely viewing.

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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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CEO Corner: UMBF Earnings Summary

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Yesterday we shared our earnings report for the second quarter of 2017. I’m pleased to share some high-level results and notable milestones achieved during the second quarter.

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Loan growth

Increasing loan balances are a driver of revenue growth for our company, and we again delivered solid results with average balances for the second quarter increasing 9.4 percent year-over-year, led by C&I loans.

Key Metrics

Our ongoing efforts to drive positive operating leverage are paying off. For the first half of 2017, revenue growth outpaced operating expense growth, resulting in increased operating leverage of 3.7 percent. On a year-over-year quarterly basis, operating leverage was 4.7 percent, as revenue increased 10.6 percent while expenses increased 5.9 percent. We remain focused on generating and improving the positive operating leverage as we continue to invest in our business to drive revenue growth.

Over the past 13 years, our net charge-off (NCO) ratio has averaged 0.29 percent, while our loan book has more than tripled. More recently, NCOs have averaged just 0.23 percent quarterly over the past five years.

That said, credit trends can be inconsistent from one quarter to another, and, as such, NCOs for the second quarter came in at $10 million, or 0.37 percent of loans. The increase in commercial charge-offs was driven primarily by one credit to a manufacturing and distribution company, which accounted for more than half the charge-offs in the quarter. We periodically have anomalies in our charge-offs – however, given what we know today and the characteristics of our portfolio, we expect our NCOs to return to a level more in-line with historical rates.

Milestones

Several of our businesses hit remarkable milestones during the second quarter.

  • Healthcare Services saw their number of health savings accounts (HSAs) pass the 1 million mark and posted a 30 percent increase in deposits compared to one year ago. Healthcare Services now holds $1.8 billion in deposits and represents 11.5 percent of our total deposits. In general, HSAs continue to show impressive growth, and as the fifth largest HSA provider (by accounts) in the U.S., we are in an extremely strong position to capitalize on this industry trend.
  • Fund Services had a great quarter as well, as assets under administration topped the $200 billion mark. The team brought in new servicing and custody business during the quarter, which helped drive a $1 million improvement in revenue compared to first quarter.
  • Finally, we saw tremendous growth in our Agribusiness division. According to the American Bankers Association’s Top Farm Lenders list, UMB ranked as the No. 20 Ag lender in the nation, which is a remarkable jump from 2012, when we ranked No. 49.

I would like to thank our dedicated associates for their commitment to customer service. And, of course, none of this would be possible without the trust and support of our clients.


Mariner is the chairman and chief executive officer of UMB Financial Corporation and UMB Bank, n.a. He joined UMB in 1997. Mr. Kemper is active in both civic and philanthropic endeavors. One of the causes he is most passionate about is the arts. He currently serves as a trustee and executive committee member for the Denver Art Museum and is a past board member for The Arts Council of Metropolitan Kansas City.



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CEO Corner: UMBF Earnings Summary

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Earnings infographicOur recent earnings report reflected our financial performance in 2016’s fourth quarter and a snapshot of the full year. I’m pleased to share some high-level results, and call out a few important points.

Here are some key points that were particularly noteworthy for us:

  1. We had a great fourth quarter, with net income of $42.9 million, and $158.8 million for the full year. That reflects record annual net income, which increased nearly 37 percent from 2015, double-digit year-over-year loan growth, and perhaps most importantly, continued improvement in our profitability metrics.
  2. During 2016, we fully integrated our acquisition of Marquette and grew the combined customer base with average loans increasing 12.5 percent. The acquisition doubled our presence in the Arizona and Texas regions, driving a significant part of that loan growth.
  3. We continued our progress in optimizing our balance sheet by shifting earning assets into loans. The results can be seen in our improving net interest margin (NIM), which in the fourth quarter, increased 24 basis points from a year ago to 3.00 percent. This was driven by loan volumes and by a more optimal asset mix.
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Last year was certainly an interesting year for our industry, with the continued low-rate outlook turning to a more positive sentiment almost overnight following the election. While it’s too early to predict what a potentially new economic and regulatory environment could mean for UMB, some of the potential changes that have been suggested could prove beneficial.

Suffice it to say, we are listening to the discussions and different thoughts regarding what may or may not come to fruition, and we look forward to seeing what 2017 holds for the industry and the economy. That said, our path in the year ahead is to maintain focus on our key priorities.

I am very proud of the progress we made in 2016 and look forward to working with all our associates in providing our customers with another excellent year of service and partnership.

Read more in American Banker, UMB Financial profit rises on double-digit loan growth‡.

 

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


Mariner is the chairman and chief executive officer of UMB Financial Corporation and UMB Bank, n.a. He joined UMB in 1997. Mr. Kemper is active in both civic and philanthropic endeavors. One of the causes he is most passionate about is the arts. He currently serves as a trustee and executive committee member for the Denver Art Museum and is a past board member for The Arts Council of Metropolitan Kansas City.



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Third quarter 2015 earnings explained

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We released our third quarter 2015 earnings  recently, and our Chief Financial Officer is here to share the highlights.

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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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Second quarter 2015 earnings explained

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We released our second quarter 2015 earnings  recently, and our Chief Financial Officer is here to share the highlights, including the much-anticipated acquisition of Marquette Financial Companies.


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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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Welcome Marquette Financial Companies

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Chairman and CEO Mariner Kemper welcomes recently acquired Marquette Financial Companies.

 

 

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Mariner is the chairman and chief executive officer of UMB Financial Corporation and UMB Bank, n.a. He joined UMB in 1997. Mr. Kemper is active in both civic and philanthropic endeavors. One of the causes he is most passionate about is the arts. He currently serves as a trustee and executive committee member for the Denver Art Museum and is a past board member for The Arts Council of Metropolitan Kansas City.



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First Quarter 2015 Earnings Explained

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We recently released our First Quarter 2015 earnings. Our CFO, Brian Walker, took a moment to explain where we faced headwinds as well as the positive aspects of the last quarter.


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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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2014 Earnings Explained

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We recently released our Fourth Quarter 2014 earnings. Here’s a breakdown of the fundamentals that made 2014 a successful year, what caused the challenges and what we’re looking forward to in the months and years to come.

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Mariner is the chairman and chief executive officer of UMB Financial Corporation and UMB Bank, n.a. He joined UMB in 1997. Mr. Kemper is active in both civic and philanthropic endeavors. One of the causes he is most passionate about is the arts. He currently serves as a trustee and executive committee member for the Denver Art Museum and is a past board member for The Arts Council of Metropolitan Kansas City.



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The news is out

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Chairman and CEO Mariner Kemper explains reasons behind UMB’s agreement to acquire Marquette Financial Companies.

This is an exciting time for UMB, our associates and our customers. UMB is a strategic buyer, which means we only consider businesses that fit with our strategy and are a financial and cultural fit.

With that in mind, we’ve been actively searching for an opportunity like this and we believe that our agreement with Marquette Financial Companies (MFC) is a home run. Here’s why:

  • We expect the combination of UMB and MFC to be financially attractive with complementary balance sheets.
  • We will enhance our diversified financial services business model.
  • It would add two specialty lending businesses, asset management and trust services.
  • We will increase our banking presence in Arizona and Texas, two key growth markets for UMB.
  • UMB will grow our asset management business in the Minneapolis, Arizona and Texas markets.
  • Our two companies have similar cultures – and that’s important for a successful combination to work.

Marquette meets the many requirements we’ve been looking for in an acquisition. Until the transaction is approved and has closed sometime in mid-2015, both companies will continue to operate separately.

Ideal culture fit

What do we mean by having similar cultures? The main similarities are found in our values … how we approach business and each other with integrity. Ethics. A desire to do the right thing. We’ve both been influenced by a history of strong leadership with deep ties to our communities. Our cultures nurture and practice collaboration and we both place emphasis on diversity and inclusion in the workplace.

Giving back to our communities where we do business through volunteering and financial support also is foundational to our businesses. MFC has primarily focused on affordable housing, community economic development and financial education for youth and adults. We’ve traditionally focused on the arts and financial education, as well as community development.

Both of us care deeply about keeping our associates engaged and retaining them throughout their careers. We’re especially proud of that at UMB.

Why customers should take note

Once this acquisition is approved and closed, expected to be in mid-2015, our customers will have access to more products and services, as well as more locations to conduct business.

Where specifically? Customers of the various MFC businesses will be able to utilize UMB’s banking and wealth management centers in eight states – Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas. For UMB customers, they’ll be able to visit Meridian Bank branches in the Phoenix and Ft. Worth areas as they transition to UMB Bank.

Marquette also has specialized business units including business credit, commercial finance, transportation finance and asset management services.

What’s next?

Stay tuned. Both companies will continue to operate separately for now.

  • Customers will continue to do business as usual while the transaction is pending approval.
  • Integration plans are being developed.
  • Our goal is a seamless transition for customers and we pledge to actively communicate.

Great acquisitions work when the cultures fit together. That’s the case here, and I’m confident that it will provide us all with opportunities for future success.

 

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When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


Mariner is the chairman and chief executive officer of UMB Financial Corporation and UMB Bank, n.a. He joined UMB in 1997. Mr. Kemper is active in both civic and philanthropic endeavors. One of the causes he is most passionate about is the arts. He currently serves as a trustee and executive committee member for the Denver Art Museum and is a past board member for The Arts Council of Metropolitan Kansas City.



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From 19 to Retirement…a look at a life-long UMB career

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A letter from Rosie, reflecting on her time at UMB:

Rosie

It’s hard to imagine how much has happened during the last 45 years of my time at UMB. I started at the age of 19, on July 17, 1968.

We now have UMB Bank branches in eight states; 112 branches total. I’ve worked for City National Bank, United Missouri Bank, United Missouri Bancshares Inc., UMB Financial Corporation, and UMB Bank, n.a—all the same organization, but with name changes over the years. With each name change, UMB has had six different logos, my favorite being the Indian Scout. What an accomplishment for me to be able to work for such a stable company.

With my first job, we didn’t have computers—a fact that is difficult for my two grown children to comprehend. I started in the Stock Transfer Department working on a posting machine. We actually had to type certificates for the new stockholders on manual typewriters! (After a few years we graduated to electric typewriters.) It’s hard to believe where we came from looking at us now, with all the modern technology UMB Bank has today.

While working at UMB Bank, I was able to meet each of the Kempers who were president or CEO. The first was Mr. R. Crosby Kemper, Sr. who officially retired shortly after I was employed by the bank. Then I met Mr. R. Crosby Kemper, Jr., Sandy Kemper, R. Crosby Kemper III and Mariner Kemper. I would encounter them on the elevators, and each one was so friendly. They thanked me for being part of the UMB family. I especially remember Mr. Kemper, Jr. buying his breakfast in the cafeteria and going to each of the tables to say good morning to everyone. I remember the famous Kemper smiles. They all seemed to have that same smile that reached out to everyone they saw or met.

Rosie and Mariner1

Mr. R. Crosby, Jr. was a big fan of the University of Missouri Tigers. I remember the day I went to the 928 Grand tellers and saw a huge, beautiful tiger in the lobby. Yes, a real tiger. Sometimes I wonder if I really saw that tiger or if it was just a dream, but some of my fellow co-workers also remember the “Tiger in the Lobby” day.

Umbert_Czar the Tiger_1973

In my time here, I witnessed the construction of the 1010 Grand UMB building in 1986 and the Technology and Operations Center in 1999. I saw old buildings being demolished, the resulting big hole in the ground, and then the new completed bank buildings that take up one square block. I loved being there for that history and now getting to tell my grandchildren about it.  Sometimes it pays to be old. You see so many things happen during your life.

As my 45 years are coming to a close, I look back upon a career that has really flown by. There have been ups and downs just like in life, and you become one big family.

I realize that soon I will not be seeing and greeting my work family. Over the years I have made a lot of friends, some gone, some still here and I get a little emotional because I will be leaving part of my family behind.

Once I retire, I will be volunteering for my church and Alexandra’s House, which provides perinatal hospice support, watching my grandchildren while they are out of school and trying to keep busy.

I am saying goodbye now and leaving you with these paraphrased words: “Live. Laugh a lot. It’s good for the soul. And last of all, love your job, because one day you too will be walking down the hallways for the last time.”

With fondest memories,
Rosie Corral

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When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


Prior to her retirement, Ms. Corral was an operations associate for UMB. She worked in the settlement department, receiving and settling buys from brokers. She joined UMB in 1968 and has 45 years of experience in the financial services industry. As of April 30, she retired after a long career at UMB.



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