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Inside UMB: The benefits of yoga at work

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This post is part of our “Inside UMB” series, offering a look at our company’s culture and stories about our people.  

Cathy Tadlock is an Executive Assistant at UMB and the instructor for the company’s onsite yoga classes for associates, which offer modifications to postures to be inclusive of all attendees.

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The benefits of yoga

Cathy started her yoga journey a few years ago, searching for a way to add physical exercise into her busy schedule without having to go to a gym. Through her yoga practice, Cathy has discovered more than she anticipated and is now sharing this passion with her colleagues, in hopes they gain the same benefits.

“I used to suffer from terrible migraines multiple times a week. This has been greatly reduced and is now easily managed. I’m in better shape now than I was at age 20 and have a greater sense of community through teaching,” Cathy said.

“Associates can gain better concentration and focus through practicing yoga at work. A happy person feels better, is more relaxed and can counteract some of the effects of sitting at a desk.”

Onsite yoga classes at UMB

UMB’s onsite yoga classes are offered twice per week for associates during the lunch hour in the downtown Kansas City office. With a UMB’s focus on associate health and wellness in mind, these classes provide a break in the workday routine and exposure to co-workers who might share similar interests.

At UMB, Cathy teaches Vinyasa Flow, a form of yoga for any skill level, which focuses on breathing and posture techniques. Cathy explained, “We don’t do the complex postures you see on social media—we focus on linking movement with your breath.”

“I love that yoga can be adapted for anyone, and it is a very personal journey. Each day is different when you step on your mat. I have learned to set aside my ego and competitive self while practicing yoga,” Cathy shared.

“I was so excited when I learned I would be able to share yoga with fellow UMB associates. I have the best of both worlds: I work with a great group of people and get to meet new faces from across the company through yoga.”

Learn more about UMB’s associate benefits at umb.com/careers.


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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A Look at a Historic US Flag

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In celebration of the adoption of the official US flag, on June 14, 1777, we’d like to share one of the historic flags found in UMB’s collection. This flag, featured right (a museum replica), was used by General Washington and his men when advancing on the British in Boston, and is known as the Grand Union flag.

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It replaced a variety of regimental flags, most notably a solid red flag that the British considered an emblem of American defiance. Because of the “Union Jack” design included in this flag, the British interpreted the flag as a gesture of conciliation, however it was not.

The Grand Union flag was the first US flag recognized as American by a foreign power. As a British spy who was witness to the event reported to London: As an American ship left the port at the Caribbean island of St. Croix, then possessed by the Danish, the ship fired the customary cannon salute to the fort protecting the harbor.


“The vessel went out under American colours, saluted the fort, and the compliment was returned the same as if she had been an English or Danish ship!”


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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UMB Ranked No. 20 in ABA Top Farm Lender List

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When UMB opened its doors in 1913, Kansas City was at the heart of agriculture productivity in the Midwest. Many of our original loans and relationships were with farmers and ranchers. During the past 100 years, that deep connection with the land and those who work it has only grown.

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A testimonial to that growth recently came in the form of recognition as a Top 20 farm lender in the U.S. when the American Bankers Association released its latest Top Farm Lenders list. This ranking is a significant milestone for our Agribusiness Division as we have moved up 29 spots on the list from No. 49 in 2012 to No. 20 today. During that time, our farm loan balances have grown from $281.1 million at year-end 2012 to $708.9 million at March 31, 2017.

“To move up the list this much over the last four years is a remarkable testament to our clients’ success and our relationship-based approach to helping them with their financial needs,” said Bill Watson, president of UMB Bank’s Agribusiness Division. “UMB has always been in the agriculture lending business, given that our footprint contains some of the most concentrated areas of ag resources in the U.S., but in late 2012 we invested more resources into our agricultural division and the results speak for themselves.”

Our Agribusiness Division serves all areas of agriculture, including producers, processors, suppliers and manufacturers of equipment and goods, throughout a 12-state area.

Learn more about what ag means to UMB and see some of our clients in action.

 


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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Monthly Media Update – May

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Insight into the changing healthcare landscape in Washington, the introduction of a new market president and a unique perspective on trends in the bond market are just a few media coverage highlights from our associates this past month.

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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Remembering World War II

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During World War II, UMB (then known as City National Bank) corresponded with and supported employees who were enlisted in the armed services. In remembrance and in honor of the 73rd anniversary of the Normandy invasion we’d like to share one of the letters that the bank has preserved.

 

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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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Is the Bond Market Wrong?

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After the surprise election results in 2016, domestic markets experienced the “Trump Bump,” which entailed a traditional risk-on shift—investors bought stocks and sold bonds to prepare for the presumed good times ahead. Stock values and interest rates both shot higher in anticipation of a boost to both economic activity and inflation.

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Trump Bump to Trump Slump

However, after a few months of treading water early in the New Year, interest rates began a steady decline. The 10-year Treasury note dropped from 2.60 percent to 2.25 percent in just a few weeks.

This occurred despite an early increase in overnight rates by the Federal Open Market Committee (FOMC) and clear messaging that they are prepared to continue the upward march in rates as part of a gradual “normalization.” All the while, stock prices remained resilient and repeatedly bumped up against all-time highs.

Debates and Head-Scratching

The drop in long-term rates created a flattening of the treasury yield curve, something that typically occurs near the end of a Fed tightening cycle, as the economy begins to slow down.

This rate drop and curve flattening has triggered a healthy debate throughout the

investment industry. It appears the bond market is signaling that the economy isn’t going to be nearly as strong as the equity market is discounting.

Historically, a flattening yield curve has been a strong, early indicator of economic deceleration—so the divergence between stock prices and interest rates has unleashed some serious head-scratching.

Disagreement Abounds

As a further complication, the Fed Funds futures market—the bond market’s estimate of where overnight rates are headed—is substantially below the FOMC’s estimates for where they’re planning to move rates. The FOMC expects overnight rates (and money market rates) to head to 1.50 percent in 2017 and rise to 2.20 percent in 2018, which is good news for savers. However, the futures market is placing overnight rates at only 1.25 percent and 1.50 percent in 2017 and 2018.

It appears that the bond market currently disagrees with both the FOMC and the stock market on the strength of the economy and the path of rates, raising the question, “Is the bond market wrong?”

Countering the Contrarian View

At this point, our answer is “yes, we believe the bond market is wrong.”  While it’s usually not fruitful to bet against the bond market, we believe several factors are causing it to paint a contrarian (versus the stock market) picture at this time:

  1. Assumption that the new administration will not get any stimulus plans enacted
    The bond market appears to be responding to the president’s early challenges with enacting campaign promises.
  2. Global interest rates
    Global interest rates are still well below the U.S. The glut of excess savings from around the world is still chasing U.S. rates whenever they rise, making it difficult for our rates to rise as much as they might otherwise.
  3. Normalization cycle
    Bond investors around the world are assuming the current Fed normalization cycle will play out in a similar manner to how the entire global financial crisis cycle has unwound—much slower than anyone anticipated. They are betting against any “upside surprises” for the economy or inflation, and it’s been a very long time since we’ve had either.
  4. Extreme caution in rising rates
    The bond market believes the FOMC will exhibit extreme caution in edging rates higher because it fears rising rates will tip the economy back toward a slowdown.The bond markets are not signaling that an economic slowdown is eminent, but rather that rate normalization will not be possible at the pace indicated by the Fed and most forecasters.

Why we believe the bond markets are wrong:

  1. We believe the new administration will succeed in enacting tax cuts and infrastructure programs—both will involve compromise and delays, but they will ultimately be accomplished, and both should point toward higher rates.
  2. We believe the global savings glut is in the very early stages of abating, so the artificial “lid” on interest rates may be slowly dissipating.
  3. While the last decade has been one of extremely slow movements from the Fed, it appears wage pressure is building throughout our economy—a precursor to inflation. Economic momentum is turning upward in Europe as well. These trends will allow the Fed to push forward with rate normalization at the pace reflected in most forecasts.
  4. Interest rates are exceptionally and unsustainably low, particularly given that we are experiencing a modest global upturn. Even after the Fed’s projected upward adjustments, interest rates will still be exceptionally low—modestly higher rates are not a threat to the economy or a barrier to normalization. For these reasons, we believe the bond markets are not properly reflecting the most likely path for interest rates over the next two years. There are risks to this outlook, but the most likely outcome is an upward shift of roughly 1.00-1.50 percent over the next two years.

Interested in learning more about our Private Wealth Management division? See what we mean when we say, “Your story is our focus.


Mr. Kelley is managing director of fixed income at UMB and is responsible for overseeing the product development and management of the fixed income holdings for the Wealth Management division. Mr. Kelley earned a Master’s of Business Administration from Baker University in Kansas City.



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HSAs 101: What You Need To Know – Part One

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Health savings accounts (HSAs) are being discussed as an integral part of the 2017 American Healthcare Act (AHA), the proposed replacement plan for the Obama Administration’s 2010 Patient Protection and Affordable Care Act. As the popularity of HSAs grows and they continue to be considered a key component of the AHA, understanding how they work is becoming increasingly important.

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According to a Midyear 2016 report from Devenir, HSAs have grown to an estimated 18.2 million accounts with $34.7 billion in assets nationwide—a year-over-year increase of 22 percent.

Educating yourself about the benefits and rules of an HSA is the first step to getting the most out of this health care savings option.

What is an HSA?

A health savings account (HSA) is a tax-advantaged account that an individual can use to pay for qualified medical expenses, long-term care expenses, or invest and save for retirement. Individuals can only contribute to an HSA if they are enrolled in a qualified high deductible health plan (QHDHP). Individuals can’t have any disqualifying coverage (including Medicare) and can’t be claimed as a dependent on another person’s tax return.

HSA-qualified plans must also meet requirements for minimum deductible and maximum out-of-pocket expenses levels. For 2017, the maximum annual HSA contribution is $3,400 for individuals with self-only coverage and $6,750 for individuals with family coverage.

What are the benefits of an HSA?

  1. Triple tax advantage*

HSA contributions go in tax-free, grow tax-free and are spent tax-free if withdrawn for eligible medical expenses.1 In addition, when making an HSA contribution directly through payroll, employees do not pay payroll taxes.

  1. HSAs are individually owned

HSAs are owned by the individual, not by the employer. This means there’s no “use it or lose it” rule – like with  flexible spending accounts (FSAs) – so any money left in the account at the end of the year rolls over to the next. Also, the HSA-holder keeps the account, even when changing employers or health plans.

  1. HSAs can be used as a retirement saving tool

HSAs are a powerful tool to save for health care costs in retirement. Fidelity Benefits Consulting estimates the average retired 65-year-old couple will need $260,000 to cover medical expenses throughout retirement. Because of the triple tax advantage*, HSAs are a tax-effective way to save for these future expenses. After retirement age, individuals can use the HSA funds for non-medical expenses without paying any penalty and with similar taxation to withdrawals from other retirement savings accounts (e.g. 401(k)s).

What is the best way to use HSAs?

The best use of an HSA is to help individuals better manage medical expenses today and in the future. One of the main reasons to establish an HSA is to help account holders pay for the out-of-pocket expenses until they meet the deductible in a QHDHP. However, many account holders treat their HSAs as pseudo checking accounts, paying for health care expenses as they occur and doing little to save for health care costs in retirement. In doing so, many HSA-holders are missing out on the potential for triple tax advantages* inherent in an HSA, something not found in other retirement savings vehicles.

*Neither UMB Bank n.a., nor its parent, subsidiaries, or affiliates are engaged in rendering tax or legal advice.  All mention of taxes is made in reference to federal tax law.  States can choose to follow the federal tax-treatment guidelines for HSAs or establish their own; some states tax HSA contributions.  Please check with your state’s tax laws to determine the treatment of HSA contributions, or consult your tax adviser.

1Withdrawls for non-qualified medical expenses are subject to income taxes and a possible additional 20% penalty, if you’re under age 65.


Ms. Klumb serves as CEO, UMB Healthcare Services. Previously, she served as executive vice president, chief strategy officer. She joined UMB in 2003, after completing her MBA at Yale University. She also holds an MA from Hochschule Fulda and a BA from the Universitat d'Alacant. Ms. Klumb is actively involved in the community. She was appointed by the mayor to the Summer Youth Employment Commission, she chaired the Mattie Rhodes Center board, and she was a co-chair a for Academie Lafayette's successful capital campaign.



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Monthly Media Update – April

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President Trump’s first 100 days in office, trends in wealth management, HSA benefits and economic conditions were just a few of the topics our associates provided perspective on over the past month.

From the Wall Street Journal and USA Today to the Kansas City Business Journal, stay informed of 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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As we head into spring and close another successful quarter of financial performance at UMB, I would like to take a moment to look back at recent activity and to share key highlights from our first quarter earnings report.

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Here are some noteworthy items from first quarter of 2017:

  • We had a strong first quarter with net income of $44.2 million.
  • We continue to post double-digit year-over-year loan growth.
  • This loan growth, along with our efforts to achieve an optimal mix of earning assets and increased loan yields, drove a 13.9 percent increase in net interest income.

We also recently announced our plans to sell Scout Investments (Scout) following a strategic review of our businesses, including the capital needs for each of them.

After evaluating our core strengths and the competitive environment in which Scout operates, we were faced with a decision to either achieve scale through acquisitions or to exit the business and deploy capital generated into our core banking operations.

We believe we found the right partner, both culturally for associates and for the enhanced distribution capabilities, scale and resources needed to further Scout.

We want to be clear that this agreement to sell Scout does not diminish our commitment to investment management for individuals and institutions.

We continue to offer asset management solutions to our private wealth, Prairie Capital Management and institutional banking clients. We have experienced robust growth in these businesses, and that growth continued in the first quarter of 2017.

It’s also worth noting that diverse revenue streams continue to be an important part of our business model. We have many growth avenues to replace the revenue provided by Scout, including our Healthcare Services, Institutional Banking and Fund Services businesses, as well as continued loan growth.

As we head into the second quarter, we remain focused. Focused on our key priorities. Focused on providing excellent service. And, most importantly, focused on partnering with our customers for success.


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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Q&A Series with Ben Morris, President of UMB Healthcare Services Part Three: Roy Ramthun Breaks Down the Political Landscape for HSAs

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With the demise of the American Health Care Act, there are a lot of unknowns in the health care industry. UMB Healthcare Services’ Strategic Advisory Council, made up of five leading industry experts in a variety of health care, benefits and research-related fields, will discuss the future of health care and what to do during this period of uncertainty in our April 27th webinar. Gearing up for the webinar, we asked members of our Strategic Advisory Council questions about their outlook for the future of health care.

In the third Q&A series, I talk with Roy Ramthun, president of HSA Consulting Services, about the political landscape and outlook for consumer directed health care. We look at the impact on health savings accounts (HSAs), high deductible health plans, and the private market and exchanges.

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What is the political landscape for Health Savings Accounts (HSAs) in the future?

I see the political landscape for HSAs as being very positive. Since the Affordable Care Act was enacted, health plan deductibles have increased dramatically and people have become very concerned about high out of pocket costs. Fortunately, HSAs are perfectly suited to help people protect themselves by putting aside money for those out of pocket costs while providing them tax savings. With the triple tax advantage that HSAs offer, it’s like the government gives you a rebate every time you put money into your HSA.

Everything I am seeing suggests that more employers are going to be offering HSAs to their employees in the future. The discussion occurring in Washington, while still unsettled at this time, suggests that HSAs will play a greater role in financing people’s health care.  Any improvements will provide even more incentives for Americans to use HSAs to meet their out of pocket costs.  Some of the improvements under consideration include allowing people to put more money into their HSA each year and providing more flexibility in terms of how HSAs can be used to pay for health care services.

What is the outlook for High Deductible Health Plans (HDHPs) – do we see these as a key player with the bolstering of HSAs?

I think HDHPs are here to stay which is kind of “back to the future” in health insurance. Not that long ago, we all bought health insurance to protect us from major medical bills. Over time new plans like HMOs offered first dollar coverage for almost everything and we forgot the basic principles of insurance.  Now the pendulum has swung back the other way and it seems like most of the PPO plans have raised their deductibles so they look almost identical to high deductible plans. Interestingly, if we had a more flexible standard for the type of health insurance plan that makes people eligible for an HSA, a lot more people could have HSAs. Hopefully we will have that conversation soon. That is not going to be a part of the initial debate, but it is something we could see as part of a second or third health care conversation.

What is the outlook for the private market and exchanges?

Unfortunately, both are in disarray and concerns about their future viability are legitimate. If the goal is to offer more affordable products, it gets harder when you start introducing more requirements and regulations. Consumers have lost a lot of freedom to choose affordable policies that meet their needs. Not enough healthy people are buying policies to even out the costs for sick people that cannot be denied coverage. There are fundamental flaws in the current system and whether or not that can be corrected anytime soon is a very open question.

How do you see the modifications to the health care laws impacting the behaviors of HSA consumers?

One aspect that could impact HSA consumer behavior is the prospect of increased contribution limits. I think this will energize people to see HSAs as savings accounts rather than spending accounts. As their HSAs grow, the hope is that they will start thinking about using their HSA to plan for future health care expenses like retirement. Studies suggest that people are not saving enough for retirement. HSAs could potentially be the tool they need to help them reach their financial goals for retirement. As we age, many of us will probably spend a greater percentage of our income on health care expenses. It never hurts to have another tool in the toolbox—especially one that is focused on health expenses and has the most tax advantages available.




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