Blog

Meet the Leadership Series: Jim Rine (UMB President, Kansas City Region)

  |  Posted by

Q&A with Jim Rine, President of Kansas City Region
Get to know UMB’s leadership a little better.
Jim Rine family

Continue Reading

Tell us about yourself.
I went to high school in Independence, Mo. and graduated from Missouri State with a finance degree in 1993.  I started right out of college with UMB as a credit analyst/management trainee, and I will celebrate my 22nd anniversary with UMB in April.

Tell us about your family.
My wife Melanie and I live in Leawood. My wife Melanie and I met in high school, but went to different colleges, dated off and on for 10 years, before getting married in 1997. Melanie has an undergraduate and master’s degree in music education from the Conservatory at UMKC.  She taught music in the North Kansas City School District for 10 years before deciding to be a full-time mother. She was an avid runner, with five marathons under her belt, now more active with tennis and golf.  She was also the president of the Parent Teacher Organization at our children’s elementary school.

We have two children. My daughter, Emily, is 14 and in eighth grade. She is active in tennis, swim and dive, junior golf, music and an active volunteer for the community. My son, Maddox, is 10 and in fifth grade. He is a huge sports fan, and plays basketball, soccer, tennis, junior golf and swim and dive. 

Why did you choose UMB?
UMB was my bank. I opened my first checking account with UMB when I turned 16, and when I graduated college I thought I was going to be the next great mutual fund manager. Thinking I would need to start as an analyst, I thought the fundamental analysis you would do on the privately-held companies in the credit department would be a door opener to becoming a market analyst. I had no idea I would end up in commercial banking!

What is it like to be regional bank president?
The regional president role varies from market to market. It looks much different in Kansas City than it does in a market with 100 total associates. In Kansas City, you share a good portion of external duties with other company leaders. My biggest challenge is using an impact and influence model to ensure all divisions are working together to introduce our customers to all areas of the bank. In the commercial banking space, I want to create an environment where people feel valued and rewarded for doing a good job. Adding value and removing obstacles allows us to attract and retain top key associates. At the end of the day, any amount of success that I have in this position is a direct result of having the right people.

In addition to being the president of the Kansas City region, I also have our national business development team and business banking teams that roll up to me. Both are considered commercial holding company groups that have reach outside Kansas City. In all three teams, we win because of our people.

What are your favorite ways to give back in the community?
I have served on many non-profit boards in the past. Currently, I am on the board of the Kansas City Zoo and Charlie’s House, a small non-profit. The founders, my friends Brett and Jenny Horn, lost their 2-year-old son, Charlie, when he pulled a dresser down on top of himself in 2007. Anything I can do to bring awareness to child safety that would prevent even one accident like this from happening again is worth my time as well as financial support.

My appreciation for the zoo was renewed when my children were younger. Under the leadership of Randy Wistoff, the Kansas City Zoo has experienced a major metamorphosis in the last several years.  The Polar Bear exhibit, Penguin Plaza, Orangutans and numerous other exhibits/renovations have transformed the zoo into a place Kansas City can be proud of.  World class cities have world class zoos, so I believe it is important to our region.

Where is your favorite place to travel and spend a weekend?
I love visiting anywhere with an ocean and golf course! And even though it’s cliché, my favorite way to spend a weekend is with family and friends.
Jim Rine golf

 

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.


Mr. Rine became president of the Kansas City region in 2011. In his current role, Mr. Rine is responsible for managing the Kansas City commercial banking teams and partnering with other bank line of business leaders to implement the strategic plan for Kansas City. He is the advisory director for UMB Bank, n.a., and is on the following UMB advisory boards: Metro, South, Johnson County, St. Joseph and UMB Financial Services. He joined UMB in 1994. Mr. Rine earned a bachelor’s degree in finance from Missouri State University in Springfield, Missouri.



Leave a Comment

Tagged: , ,

Farm to office: Tips for starting a workplace CSA

  |  Posted by

Spinach, strawberries and sprouts freshly picked from the field and dropped off at your desk—this isn’t just for Earth Day. That service is actually a reality at our headquarter UMB offices.

CSA stands for community supported agriculture. The CSA model connects local farmers directly to consumers.  Through a CSA, consumers can purchase a “share” of local, seasonal products directly from the farmer. Shares are generally delivered on a weekly basis and can vary in size and cost. A workplace CSA can be a great addition to your organization’s wellness or sustainability programs.
CSA summer share

Continue Reading

Benefits of a CSA and buying local

  • Natural: Most CSA farmers grow their crops without pesticides, herbicides and genetically modified organisms (GMOs) so the food tastes like it came from your backyard garden. According to a PBS Independent Lens documentary‡, 95 percent of CSA farms use organic or biodynamic farming‡.
  • Fresh: In addition the food travels a shorter distance to get to you. Produce can be picked when it is ripe instead of being picked too soon which happens if it has to travel across the country. Some foods travel thousands of miles to get to our grocery stores. The shorter distance it travels means less fuel and emissions and time it takes — making it better for the environment.
  • Local support: Buying local supports our community, our friends and neighbors. Family farmers are people that work hard to bring us fresh and healthy food.

How to get started

Since 2010 UMB has offered its downtown Kansas City associates the option of having farm fresh products delivered to the office. Through the years we have used a few different CSA farmers, and here are the lessons we learned:

  • Determine interest: You can send out a short online survey (an online search will give you free options for simple survey tools) to test interest or you could even host a one day onsite farmers market to see how much interest it generates. UMB hosted a farmers’ market for Earth Day, and its popularity was a deciding factor for us to offer a CSA program.
  • Choose a dedicated CSA coordinator to work with the farmer and your employees. This could be someone in HR or a volunteer from your green team or wellness team. Make sure this is someone you can rely on and that they know they will have to dedicate some time and effort to supporting and promoting the program during the CSA season.

How to choose a CSA provider

  • Interview a few farmers to find the right fit. You can find a list of farmers who offer CSAs through one of these websites Kansas City Food Circle or Local Harvest. Many CSA farmers use organic farming methods but may not have the financial means for certifications. Each farm is different, so verify farming practices when interviewing a potential farmer. Other things to keep in mind when looking for a workplace CSA farmer:
    • Flexibility in share sizes, product offering – many CSAs offer meat, dairy, canned and baked goods in addition to produce, allergy sensitivities like gluten free and vegan options. Be aware that the more customized your CSA program the more complex it can get for you and the farm to coordinate.
    • The farmer’s experience in providing workplace CSAs– Ask for a reference from a current company they are servicing.
    • What the minimum/maximum number of shares the farmer can deliver to your workplace.
    • How they will handle issues that arrive such as forgotten shares or replacement of spoiled products.
    • Delivery logistics:
      • Day of the week, time and place of delivery
      • How will shares be distributed? — interoffice mail delivery, employee pick up at set time and location, etc.
      • How will the share be packaged?
    • Forms of payment – payroll deduction, online payment, etc.
    • Ask to see a real life sample of what is in a share.Providence Farms - CSA

At UMB we have partnered with Gerry and Lisa Newman of Providence Farms, a small family-owned and operated farm in Trenton, Mo.  The Newman’s use organic farming methods—never using pesticides, herbicides, fungicides, synthetic fertilizers or GMO seeds. We get to choose from two share sizes which include produce, meat from Barham Cattle Company and Family Farm, and a rotation of eggs, baked goods, butter and more.  The CSA season runs from June to October.

Lisa Newman of Providence Farm says,“We love fruits & veggies, and we love to share!  We are very passionate about growing our food without the use of harmful chemicals. When companies allow us to deliver fresh fruits and vegetables on a weekly basis to employees, they are opening up the possibilities of people eating produce they might not have ever tried.

We live in a society where we want everything fast; fast food, boxed foods, frozen foods and microwaved food. We are providing a service where employees don’t have to take extra time to do shopping and can take their CSA home and prepare fresh food that is only hours old!”

The net result of a CSA is the food is healthier for us and better for the environment.

Have you participated in a CSA or plan to start one soon?

 

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.


Ms. Shahane is a Vice President Healthcare Marketing/Sustainability Manager for UMB. She is responsible for managing marketing initiatives for UMB’s healthcare payments, HSAs, and benefit card products. In addition, she leads the UMB Green Team and promotes UMB’s internal sustainability initiatives. She joined UMB in 2001 and has 13 years of experience in the financial services industry. She earned a MA in Marketing from Webster University. She is a volunteer for Bridging the Gap and serves on the board for Northeast Neighbor to Neighbor.



Read 2 Comments

Tagged: , , , , , , , , ,

Associate fraud: who they are and why they do it

  |  Posted by

We shared this information with you a couple years ago, and unfortunately are finding that fraud remains a hot topic. So here is a refresher on how to detect and avoid internal fraud. Be sure to check out our other blog posts on the topic of fraud.

 

He looks like a typical associate. She could be a 20-something or a person in her fifties. He could be the person you eat lunch with every day. The truth is that you can’t pick out this person from the crowd. She is committing associate or internal fraud in your company and doesn’t look any different from the rest of your co-workers. He makes sure he blends in.

So what should you look for if you suspect one of your associates is committing fraud?

Continue Reading

What to look for

  • A disgruntled associate who is vocal about their unhappiness with the company. They often use this as an excuse to commit fraud.
  • An overly enthusiastic associate who consistently ask questions about processes and procedures that will help them steal from the company.
  • A seemingly harmless associate with no apparent agenda. Their behavior won’t be as easy to spot as the first two. Having audits and checks/balances in place will likely help you catch them.

How they do it

These are not always tell-tale signs of fraud, but those who commit internal fraud are likely to:

  • Always be willing to take on additional tasks that could lead to fraud and have nothing to do with their current duties.
  • Learn as much as they can about company systems to use in conducting fraud. Systems can include but aren’t limited to: accounting, accounts payable/receivable, payroll, bank account access. They will look for weaknesses in policies or procedures.
  • Earn management’s trust with regard to the most vulnerable parts of the company.

Once they gather the necessary information and gain the trust of the company leaders, they will begin their plan. This could be creating “ghost” associates in payroll or diverting funds to a new account for a fake vendor.  A click of the mouse and the associate can send e-mails on behalf of the company or executives  requesting wire or A.C.H. transfers from their bank account.  Sometimes it’s as simple as stealing money directly or even selling confidential company information on the internet.

Why they do it

The best example of why an associate will commit fraud is described by Dr. Donald Cressey as the Fraud Triangle Model, a tool for assessing the risk of fraud. Cressey was a criminologist who studied embezzlers.

Fraud Triangle

  • Pressure is often financial and usually stems from addiction, living beyond one’s means, major medical expenses or gambling losses.
  • Rationalization is the explanation why the theft is not really wrong. Some associates tell themselves that it’s a loan and will be repaid. Others feel they are not paid enough and deserve more.
  • Opportunity is the opinion that a fraud can be committed without being caught. The thief sees poor internal controls, poor supervision, poor “tone at the top” or a combination of these.

Some of the best ways to avoid internal fraud is to set up regular, thorough audits and reviews of processes in your company.  Make sure associates have an avenue to report instances of fraud, such as an anonymous hotline.  Establish the ethical tone at the top where executive management or business owners set the tone for ethical behavior within your organization as a top priority.


Dennis Knop is a vice president and external corporate fraud investigator of UMB Bank, n.a. He has worked for UMB for 20 years, and 14 years of that in fraud investigation. He has a Bachelor of Science in Criminology and Criminal Justice. Mr. Knop is a Certified Fraud Examiner and currently serves as the chairperson of the Midwest Financial Fraud Investigators Group in St. Louis, Mo.



Leave a Comment

Tagged: , , , , , , , , , , , ,

The presidential election and the stock market

  |  Posted by

Stocks always react differently during an election cycle. A piece of advice we give clients is look for election-neutral stocks. Hear some of my thoughts on how stocks are performing this year from a recent visit to CNBC studios and read more below.

Continue Reading

Elections matter.  After all, they determine whether a Republican or Democrat sits in the Oval Office on Pennsylvania Avenue, but do they predetermine a bear or bull  market on Wall Street?

If history teaches us anything, there is one thing investors can count on during an election year, and that’s an upcoming period of uncertainty in the markets. The mere suggestion of a change in power to the highest-ranking office in our country can leave plenty of room for speculation about the future of the economy, trade relations on a global scale, and the policies that will impact how consumers live, work and spend.

2016 promises to be interesting on multiple fronts—one of them being the political environment, as this is a presidential election year. While the candidates are busy making the case for why they should be elected, we wanted to get to the bottom of one burning question: How does a presidential election affect returns in the stock market?

In answering this question, we examined historical elections and markets through four different lenses.

  1. MARKET RETURNS AND THE FOUR-YEAR PRESIDENTIAL CYCLE

We all know the market dislikes uncertainty and it doesn’t matter what causes the uncertainty. Political uncertainty is no exception. Going back to 1900, we categorized each calendar year of market returns into one of four categories: the election year, the first year, the second year and the third year of the presidency. We discovered the third year in office was the best performing and the election year had the most uncertainty.

Stocks have struggled in the first half of historic election years, no doubt due to the uncertainty of the election and what a new president may mean to the economy and the markets. Typically, the market struggles early in the year when the political theater is at its highest, with numerous candidates still in the running. Consequently, the bottom of the market is linked to the timing associated with determining a clear winner. A few examples make the point: In 1996, President Clinton’s second term was not in question and the market only suffered a minor correction of 5 percent. In 2004, there was more uncertainty. Incumbent George W. Bush, running for a second term, was in a tight race with John Kerry. That year the market established a bottom in August. This graph illustrates the two races.

S&P 500 1996 vs. 2004

There are number of events that could reduce the volatility. First, a reduction in the number of candidates would reduce the uncertainty.  This happens naturally, typically by mid-summer after the conventions, when we are down to two remaining candidates. Volatility could also be greatly reduced if the candidates clearly articulated their ideals, plans and execution strategies. Perhaps we shouldn’t count on that occurring in this election.

The choppiness of the markets in the first two months of 2016 appears to be standard operating procedure when compared to historical market action in an election year. The bottom line: Expect volatility whenever you see uncertainty, but as this pertains to election cycles, it usually clears up quickly.

  1. POLITICAL RHETORIC

As politicians campaign, they need to the voters’ attention. When the discussion turns to sectors and industries, markets react—sometimes temporarily or sometimes longer-term. In any case, the impact is seldom as bad as the language being used.

For example, one candidate has publicly announced her war against high drug prices and supports importing prescription drugs from Canada. Even though nothing has been finalized and perhaps these suggestions may never be executed, pharmaceutical stocks and biotech stocks sold off.

Another candidate, a Democrat who espouses democratic-socialist ideals, has made the comment, “If I get elected, I will be Wall Street’s worse nightmare.” You can imagine what has been happening to the financial sector as this candidate’s popularity gains momentum.

A perfect example of this is the Affordable Care Act. This legislation was signed into law on March 23, 2010. Initially, there was massive uncertainty as employers and investors analyzed and interpreted the new law. In 2010, the S&P Health Care Index was up a mere 0.7 percent, managed care increased 8.3 percent and the S&P 500 was up 12.8 percent. As I previously mentioned, this market reaction proved temporary as the positive financial impact of the Affordable Care Act began to assert itself on the companies’ bottom lines. So looking at the next 12 months, returns reversed. In 2011, the S&P Health Care Index was up a stellar 10 percent, managed care increased an impressive 32.9 percent and the S&P 500 was up only 2.1 percent.

  1. DEMOCRAT OR REPUBLICAN?

In the long run, markets are driven by economic fundamentals that trickle down to corporate earnings. In the short run, noise can influence markets. The data suggests that elections would be classified as noise.

We went back to 1900 and analyzed which political party in the White House produced the best returns in the stock market. Over this long period of time, Democrats won this contest, producing an average return of 7.9 percent. Republicans produced a return of only 3.0 percent.

I concede that this is a naïve way to analyze the data; however, the answer to the question of which party is best for the markets is inconclusive. I recently presented this data to a group of investors and a faithful Republican asked if the returns would be different if I lagged returns by a year. The question has merit and does change the results dramatically as the outcome would be completely opposite. Another argument is that Republicans have been penalized by wars and severe economic crisis. The depression in 1929 and the Great Recession in 2008 both began with a Republican president and ended with a Democrat president. When Hoover (R) was president from 1929 to 1933 the stock market was down 35.6 percent annualized. Fair enough, but data does not lie.

It becomes difficult to assign market returns to a specific president. For years, we have experienced mounting debt, an increase in terrorist threats and easy monetary policy. As these issues flair up, they either positively or negatively affect the market. So is it fair to say the current president is totally responsible?

  1. IS THIS TIME DIFFERENT?

This election may be different. This year you have candidates who represent the establishment and candidates representing the anti-establishment. Perhaps every presidential election starts this way, but today we are seeing the anti-establishment candidates moving ahead in the polls. Perhaps investors have every right to be nervous. Given the anti-establishment candidates’ popularity, investors wonder what tariffs on China and other trading partners would do to our economy and markets. And no one knows how deporting millions of undocumented immigrants would affect the economy. Further, who is to say what effect threatening banks or offering free tuition to public colleges would have? I’m fairly confident that not all of these actions would be a good thing for the markets. Keep in mind that what a candidate says they will do during a campaign is typically not what they will do once in the oval office. A candidate’s goal is to excite the voter base, increase voter turnout and gain a political advantage. Comments candidates make early on should not be taken at face value.

One cannot blame politics for the market’s recent debacle; there are many issues that are contributing to market softness. However, is it coincidental that as these anti-establishment candidates gain momentum, the market goes down?

Many years ago I worked for a U.S. senator and got a chance to see “how the sausage is made,” so to speak, and it’s not pretty. Perhaps this is all noise, since the president must work with Congress to get things done. Maybe our founding fathers built it right, with proper checks and balances, so a president with no experience hopefully cannot do too much damage. In 2017, the president will not have a free hand. If we have a Democrat in the White House, there is a good chance we will have a Republican Congress. If we have a Republican president, perhaps one with little political experience, he will have to deal with two experienced and successful leaders, Mitch McConnell and Paul Ryan,individuals who will not subordinate their policy views.

THE LONG AND SHORT OF THE MATTER

Elections are important on many fronts, but as far as markets are concerned there is a short-term effect and a long-term effect.

The only thing we can say conclusively about the market data is that prior to an election, markets tend to trade flat with higher volatility. After the election, the market has consistently delivered stronger returns.

In the long-run, the market’s preference for one political party over another is unclear. The data is clunky and incredibly sensitive to modest adjustments.

I would caution against using every statement and policy suggestion made by the candidates as a tool for guiding investment decisions. Rather, understand what history has taught us and refrain from making long-term decisions based on short-term emotions.

 

 

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.

 

UMB Investment Management is a division within UMB Bank, n.a. that manages active portfolios for employee benefit plans, endowments and foundations, fiduciary accounts and individuals. UMB Financial Services, Inc.*  is a subsidiary of UMB Financial Corporation. UMB Financial Services, Inc is not a bank and is separate from UMB Bank, n.a.

This content is provided for informational purposes only and contains no investment advice or recommendations to buy or sell any specific securities. Statements in this report are based on the opinions of UMB Investment Management and the information available at the time this report was published.

All opinions represent our judgments as of the date of this report and are subject to change at any time without notice. You should not use this report as a substitute for your own judgment, and you should consult professional advisors before making any tax, legal, financial planning or investment decisions. This report contains no investment recommendations and you should not interpret the statements in this report as investment, tax, legal, or financial planning advice. UMB Investment Management obtained information used in this report from third-party sources it believes to be reliable, but this information is not necessarily comprehensive and UMB Investment Management does not guarantee that it is accurate.

All investments involve risk, including the possible loss of principal. Past performance is no guarantee of future results. Neither UMB Investment Management nor its affiliates, directors, officers, employees or agents accepts any liability for any loss or damage arising out of your use of all or any part of this report.

“UMB” – Reg. U.S. Pat. & Tm. Off. Copyright © 2016. UMB Financial Corporation. All Rights Reserved.

Securities offered through UMB Financial Services, Inc. Member FINRA, SIPC or the Investment Banking Division of UMB Bank, n.a.

*Insurance products offered through UMB Insurance Inc.

You may not have an account with all of these entities.

Contact your UMB Representative if you have any questions.

* Securities and Insurance products are:

Not FDIC Insured  ▪  No Bank Guarantee  ▪  Not a Deposit  ▪  Not Insured by any Government Agency  ▪  May Lose Value

 


K.C. Mathews joined UMB in 2002. As executive vice president and chief investment officer, Mr. Mathews is responsible for the development, execution and oversight of UMB’s investment strategy. He is chairman of the Trust Investment, Asset Allocation and Trust Policy Committees. Mr. Mathews has more than 20 years of diverse experience in the investment industry. Prior to joining UMB, he served as vice president and manager of the portfolio management group at Bank of Oklahoma for nine years. Mr. Mathews earned a bachelor’s degree from the University of Minnesota and a master’s degree in business administration from the University of Notre Dame. Mr. Mathews attended the ABA National Trust School at Northwestern University and is a Chartered Financial Analyst and member of the CFA Institute. He is past president of the Kansas City CFA Society and a past president of the Oklahoma Society of Financial Analysts.



Leave a Comment

Tagged: , , , , , , , , , , , ,

Tax Facts {infographic}

  |  Posted by

How much do you know about taxes?  If you’re like a lot of people, you just want to know how much you owe the IRS or how much the IRS owes you. But if you dig deeper, you will be amazed at how our income tax system has evolved and some of the interesting factoids that would astound even the most seasoned tax professional. In anticipation of Tax Day, we’ve compiled a great infographic that answers all (at least some) of your questions!
Tax Facts 2016

Continue Reading

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.



Leave a Comment

Tagged: , , , , , , , , ,

Meet the Leadership Series: Rich Voreis (Marquette Transportation Finance)

  |  Posted by

Q&A with Rich Voreis (President, Marquette Transportation Finance)

Get to know UMB’s leadership a little better.

Rich Voreis Rich Voreis

Tell us about yourself!

I’m an Illinois farm boy—I grew up outside of Chicago. The family farm traces its beginning back to the 1860s when it was homesteaded by my great-great grandfather, a German immigrant. I graduated from the University of Illinois and have had many tough seasons of football and basketball to endure as a sports fan. Speaking of basketball, the Harlem Globetrotters played their first away game in my hometown of Hinckley. My claim to fame is that while in grade school, I played basketball in the same gym that game was played in.

Continue Reading

My first job out of college was in baby product sales for Johnson & Johnson where I ended up being a key accounts manager for the Kansas City market. Many, many years later I’ve returned to Kansas City as a UMB associate.
Rich Voreis Marie and Rich Voreis
My wife, Marie, and I met in the Twin Cities, raised our children there and have now been married 33 years. Our children are:  Aaron, 36, Adam, 31, and Angie, 28. Thanks to Aaron, I’m now a grandpa, and Adam will be married soon! As our children grew up, we enjoyed many vacations and memories, including ski trips, cruises and cultural events.

What about your past shaped who you are today? Rich Voreis

My farmer parents laid a great foundation of who I am today. They, like many of their generation, instilled a strong work ethic, honesty, love and the importance of helping your neighbor because it’s the right thing to do. But that foundation alone didn’t shape who I am today. Experiences along the way have provided life lessons to mature that foundation.

What are your favorite ways to give back?
 

While our children were in school, Marie and I were very active in parent associations. Lately, I’ve been involved in a local nonprofit, Project for Pride in Living, Project for Pride in Living works with lower-income individuals and families to achieve greater self-sufficiency through housing, employment training, support services and education.

Where is your favorite place to travel?
Rich Voreis
I enjoy new people and new places, so my favorite place to go is somewhere I haven’t been. While I’ve experienced a fair amount of travel outside the UnitedStates, my bucket list of places includes Asia, Northern Europe and South America.

Marquette Transportation Finance

Tell us about your vision for transportation finance at UMB.

Marquette Transportation Finance (MTF), and its division Marquette Commercial Finance, provide flexible and responsive working capital financing to mid-market and small businesses across the nation. By providing an alternative source to traditional bank financing, MTF assists businesses in meeting their working capital needs to drive growth, fund acquisitions, improve liquidity and fund restructures. We routinely serve as a bridge lender for businesses until they are able to obtain traditional bank financing.

My team’s vision now that we are a part of UMB is to continue to foster our goal to be a best-in–class financer in our industry. MTF’s and UMB’s cultures are the same in that MTF has embraced the unparalleled customer experience since we were founded in 2002. Beyond the great culture fit, the strength and backing of UMB as a financial institution provides us with the opportunity to excel in the marketplace. We are now able to reach a larger audience due to the increased lending capacity and resources that UMB affords us.

What does your team do differently?  

At MTF, our team has a deep understanding of the transportation industry and its nuances, which allows us to walk the talk, so to speak, on providing great customer service. The industry knowledge of the team helps us tailor financing for each client, and we work hard to understand our clients’ business. We know many individuals, businesses and shippers in the industry, so we can also help make connections that assist our customers’ operationally.

Beyond service and professionalism, our business model is structured so we can manage risk very well and can act quickly when reviewing financing needs. While we are backed by the larger UMB, MTF’s office is nimble enough that we can truly provide one-on-one attention.

What is the greatest challenge facing the transportation industry right now?

The greatest challenge facing our industry now is a lack of strong loan demand coupled with a very competitive marketplace. Loan demand is cyclical and tied to the general overall economy. I anticipate it will pick up in the future as the economy moves, whether up or down

 

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.


Mr. Rich Voreis is the president for UMB Bank’s subsidiary, Marquette Transportation Finance, which also operates the division Marquette Commercial Finance. He is responsible for their overall management and growth. He joined UMB in 2015 with the Marquette acquisition and has 35 years of experience in the financial services industry.



Read One Comment

Tagged: , , , ,

Meet the Veterans: Gregory Coopwood

  |  Posted by

UMB is fortunate to have several veterans on our team, and we’re proud to hire veterans in our local communities. This series highlights some of our associates who have served their country in the military prior to joining UMB. Be sure to check out the other profiles in our series.

Q&A with Gregory Coopwood, Paralegal Specialist, United States ArmyGregory Coopwood UMB

Continue Reading

Tell us about yourself
I’m originally from Woodbridge, Va., which is about 25 minutes outside of Washington, D.C. I attended and played football at Missouri State University. My journey is a little bit interesting because I applied for college and talked with the football coaches at Missouri State while I was deployed in Iraq. It’s amazing how supportive some people are in helping others achieve their goals. I have three sisters, Emily, Kimberly and Olivia, so growing up being the only boy has had its challenges with what to watch on TV!
Gregory Coopwood Missouri State University football
What about your past shaped who you are today?
I had a great upbringing by both of my parents. My father passed away in January 2014, but the values and character he nurtured in me have molded who I am as a man. Also, the fact that my family was so involved with sports in and out of school really improved my self-awareness and confidence.

My dad made the biggest difference in my life. Being the only boy, he made sure that he and I had a strong relationship. My best childhood memories are of my dad waking me up at 4 a.m. to take me to work with him. It was those truck rides where he talked to me about manhood, preparing for a family, values and character. One of the biggest things he taught me was how important it is to have communication in relationships. I wouldn’t be who I am today if it had not been for such a strong man in my life. 

Why did you join the military?
I chose to join the military because I wanted to make a difference. My mindset was “I’m doing this because I want my future family to continue to be free.” It was a contribution that I desired to give and be a part of.

Give us some highlights about your military career.
Gregory Coopwood United States Army
I was part of “Operation Iraqi Freedom” and “Operation New Dawn,” so I was able to see the transition of an 11-year operation ending and a new one beginning.

My favorite moment was sitting in a plane on the way home after my deployment to Iraq. I kept thinking to myself, “I made it, I kept my promise…I made it”. When I walked into the pick-up area, I saw my family there waiting for me. I’ve never felt so proud but so weak at the same time before, because when I finally saw my family, I knew that I really made it through.

What are the greatest challenges that someone leaving the military and entering a new career faces?
A great challenge is having patience because people don’t understand the mindset a soldier has. A lot of people interpret a soldier’s discipline in certain areas as communication gaps. The maturity is different, and nothing will bother a soldier more than being late to something.

What are your favorite ways to give back in the community?
I’ve recently joined the Big Brothers Big Sisters of Kansas City, and I look forward to being a mentor and being there for someone who needs a big brother. A lot of people complain about how the world is changing and speak negatively. My question to those people is simply, “What are you doing about it?” More than likely, the people complaining are not volunteering or applying themselves to make a difference. So I don’t talk about making a difference that often, but I like to go out and do it.

Where is your favorite place to travel?
My favorite place to travel will always be to the east coast. That’s where my entire family is, and that is where I was raised. It’s always a great feeling to go home and drive on the road you’ve traveled hundreds of time and reminisce about the past. Something that I always look forward to eating is my mom’s well-known potato salad. It’s something that can make a bad day great.

What are your favorite ways to spend a weekend?
As of right now I don’t know the city that well, but I am learning. Weekends are spent for the most part working out and relaxing. I have a nice 55-inch TV that is neglected throughout the week, so I try to spend some time with it when I can. My hobbies are anything that deals with sports and fitness, and if food is a hobby then food as well. 

How did you come to be at UMB? What made you want to work here? Rebecca Christie, Vice President/Talent Acquisition Specialist, and Ryan Gardner, Fraud Risk Manager, are the reasons why I am at UMB. Originally I was going to be a federal investigator; however, Rebecca stopped me at a career fair at Missouri State University. She saw my résumé and explained to me about the UMB Emerging Leaders Program. She then connected me with Ryan, who is also a veteran. The two of them completely sold me on the culture that I had to experience it for myself. When I came to Kansas City for my interviews, the first thing I noticed was the Diversity and Inclusion trophies. I was continuously greeted and welcomed in a loving way, making me feel like family before I even had an interview. Thankfully, I was accepted, and here I am. The culture at UMB is like nothing I’ve seen before, and I am privileged to be a part of this organization.

 

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.


Mr. Gregory Coopwood is an Emerging Leader Associate for UMB. He joined UMB in June 2015.



Leave a Comment

Tagged: ,

Economic forecast 2016: the tortoise or the hare?

  |  Posted by

We all know of Aesop’s fable The Tortoise and the Hare—a story of two unequal opponents who agree to a race. The outcome appears to be obvious, but in a surprising twist, the ever-so-diligent tortoise perseveres and wins the race. The moral of the story is: slow and steady wins the race.

UMB’s economic theme for 2016 is The Tortoise OR the Hare. We think the U.S. economy, which has grown throughout the past few years at a tortoise-like pace, will continue to produce mediocre growth in 2016. Given the stimuli that abounds, one might think the economy should grow at a faster pace, more “hare-like;” however, we think slow and steady will win out once again. We anticipate the U.S. economy will continue to grow in the 2 percent to 2.2 percent range in 2016. Relative to other economies, tortoise-like growth will be a winner.

Continue Reading

hareThe hare
Historically the U.S. economy has been more hare-like. So what has changed? When did our economy go from consistently growing more than 3 percent annually to a tortoise-like economy with growth less than 2.5 percent? For example, from 1955 to 2005, the U.S. average real Gross Domestic Product (GDP) was 3.4 percent. Fast-forward to the period from 2005 to 2015 and real GDP averaged a paltry 1.5 percent, leaving economists wondering what happened.

To answer this question, we investigated two economic variables that drive potential GDP: labor force growth and productivity gains.

two economic variables that drive potential GDP: labor force growth and productivity gainsData Source: Bureau of Economic Analysis

Labor force growth
In economics, potential output refers to the highest level of real GDP (output) that can be sustained over the long term. Year-to-year actual GDP may vary from potential GDP; this is called the output gap. Forecasting potential GDP should be relatively easy, as the formula is simply labor force growth plus productivity gains.
low labor force growth + low productivity gains

2016 forecast GDP

Labor force growth has changed throughout the years and is influenced by several factors. In the 1960s and 1970s labor force growth changed due to population growth, the baby boomer generation reached working age and more women were working outside the home and entering the labor force. However, the significant labor force growth rate increase of the 70s will not be repeated anytime soon. One reason is that most baby boomers have more siblings than children, and labor force growth is partly a function of population growth.

Productivity
The second variable is productivity, or the efficiency of production. According to the Bureau of Labor Statistics, productivity change in the non-farm business sector from 2007-2014 was only 1.3 percent.

Debate among economists: What drives productivity?

  • Capital accumulation or…
  • accelerating technical progress in high-tech industries plus the resulting investment in information technology

One common theme between both theories is that investment is critical to any growth theory. Therefore monitoring measures of human capital and research and development expenditures is necessary. We believe we will continue to see exciting new technologies developed in the future, but caution that even though new technology is introduced, the lack of adoption to these new technologies can be limiting to productivity. Therefore, we don’t see productivity gains spiking higher in the near future.

tortoiseThe tortoise
So as the fable goes, the tortoise never gives up—it is patient and persistent, and wins the race. This is a great parallel to the U.S. economy in 2016 and perhaps beyond. Our economy has been slow-growing since the Great Recession in 2009 and has continued on that path to real GDP of 1.5 percent in 2013, 2.4 percent in 2014 and near 2.4 percent last year.

I expect our economy to continue to grow at a slow and steady pace in 2016 with real GDP in the range of 2 percent to 2.2 percent. This is in part due to several tailwinds and a few headwinds.

 

GDP economic growth

Tailwinds
The labor market, consumer confidence and low interest rates are a few of the positive variables that support our expectation for steady, ongoing economic expansion.

The robust labor market gives us confidence that the U.S. economy will continue to grow at a steady pace. By the end of 2015, the number of full-time workers rose to a record high of 122.6 million. The Federal Reserve Chairperson, Janet Yellen, suggested in her recent testimony that payroll growth of 100,000 per month can absorb all of the new entrants into the labor market.

Additional data supports a solid labor market. The median duration for the unemployed fell to 10.5 weeks, the lowest in seven years. Finding part-time workers is becoming more difficult, and as the job market improves, we think more people will be encouraged to consider seeking employment. As the labor market tightens, wages will be on the rise as well.

unemployment

Data Source: Bureau of Labor Statistics

This dovetails into consumer confidence. When consumers feel good, they will support the economy by spending. Consumer confidence was relatively flat throughout 2015, but remains at a level that supports economic growth. Confidence is primarily driven by the labor market, stock prices and home prices.

The strength in the aforementioned labor market, paired with home prices up 5.5 percent last year, should continue to support confidence. Lower oil prices also gave most consumers a good feeling as their transportation costs were reduced. The wild card here is the stock market. Investors saw mediocre returns last year, (only 1.4 percent return from the S&P 500), along with higher volatility. Weak markets and an increase in volatility may shake consumer confidence this year.

The Fed has kept interest rates low for seven years. We think interest rates will be on the rise throughout 2016, ending the year at 1 percent. However, from a historical perspective, the Fed policy remains extremely expansionary, affording consumers and businesses access to inexpensive capital.

Perhaps China is getting a bad rap; it seems to be blamed for any problem ranging from stock market volatility to global warming. However from our point of view, it’s not all bad. The U.S. imports more goods from China than from any other country. As China devaluates its currency, the yuan, those everyday goods we import become cheaper, which is good for consumers. As their economy slows to a more sustainable level, the demand for energy and commodities wanes and prices are reduced. Again, this is good for the U.S. consumer.

8

Data source: U.S. Census Bureau

Not everything outside of the U.S. is necessarily a negative story, as some would lead consumers to believe. With low interest rates and a quantitative easing program, Europe could experience economic growth in the 1.5 percent to 2.0 percent range. This may not sound like much, but remember in 2014 they grew at a 0.8 percent pace and last year at 1.5 percent.

Headwinds
It’s not all rosy. Some headwinds lead to slower growth and some may not have a significant impact on our economy directly, but rather they may spook risk markets. Stocks are included in this category.

The recent U.S. manufacturing data is suggesting an oncoming economic contraction. For two quarters now, the ISM Purchasing Managers Index has been below 50, indicating a contraction. The good news is that non-manufacturing data is solidly in growth territory, albeit trending south. The bad news–historically the manufacturing data leads the non-manufacturing data. Once again, we think the current data supports a tortoise-like economy in the United States.

The Fed has a tough job: maximize employment, stabilize prices, support global markets, normalize interest rates. Oh, and don’t send us into a recession. Many recessions have been blamed on the Fed for creating a policy error, which is typically viewed as moving too fast or too soon. At this time we don’t see a policy error at hand. The Fed plans to move at a measured pace and it doesn’t look like it will threaten a tortoise-like expansion.

Issues in the global economy will constrain growth in the United States, and as we mentioned, China is slowing. It will have an impact on other emerging markets as well as on the United States to a lesser extent. We don’t believe the Chinese stock market gives us any indication of economic fundamentals due to the speculation in their markets and government intervention. However the massive volatility of their stock markets sends a violent reaction to markets around the globe. If downward pressure continues, it could negatively impact consumer confidence in the United States.

Energy is also an important variable. Even though low energy prices are good for the consumer’s wallet; tension in the Middle East may create an uneasy global economy. And while much of this won’t significantly affect the U.S. economy, it may affect our markets in the short run.

A slow and steady 2016
In 2016 we anticipate GDP growth between 2 percent and 2.2 percent. We think this will be supported by the labor market once again as businesses create new jobs.

Domestic equity returns may once again be challenged, profits are in question and valuations may contract. We expect 3 percent earnings growth which should lead to total returns in the 4 percent to 6 percent range.

We also think interest rates will be on the move this year, expecting both short-term and long-term rates to increase. Fed Funds should end the year at 1 percent.

The moral to our economic story is slow and steady won’t be all bad on a relative basis. Our economy expanding at an approximate 2.1 percent pace will allow the Fed to normalize interest rates and companies will find a way to be profitable and continue to hire workers, supporting consumption.

 

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.

UMB Investment Management is a division within UMB Bank, n.a. that manages active portfolios for employee benefit plans, endowments and foundations, fiduciary accounts and individuals. UMB Financial Services, Inc.*  is a subsidiary of UMB Financial Corporation. UMB Financial Services, Inc is not a bank and is separate from UMB Bank, n.a.

This content is provided for informational purposes only and contains no investment advice or recommendations to buy or sell any specific securities. Statements in this report are based on the opinions of UMB Investment Management and the information available at the time this report was published.

All opinions represent our judgments as of the date of this report and are subject to change at any time without notice. You should not use this report as a substitute for your own judgment, and you should consult professional advisors before making any tax, legal, financial planning or investment decisions. This report contains no investment recommendations and you should not interpret the statements in this report as investment, tax, legal, or financial planning advice. UMB Investment Management obtained information used in this report from third-party sources it believes to be reliable, but this information is not necessarily comprehensive and UMB Investment Management does not guarantee that it is accurate.

All investments involve risk, including the possible loss of principal. Past performance is no guarantee of future results. Neither UMB Investment Management nor its affiliates, directors, officers, employees or agents accepts any liability for any loss or damage arising out of your use of all or any part of this report.

“UMB” – Reg. U.S. Pat. & Tm. Off. Copyright © 2016. UMB Financial Corporation. All Rights Reserved.

Securities offered through UMB Financial Services, Inc. Member FINRA, SIPC or the Investment Banking Division of UMB Bank, n.a.

*Insurance products offered through UMB Insurance Inc.

You may not have an account with all of these entities.

Contact your UMB Representative if you have any questions.

* Securities and Insurance products are:

Not FDIC Insured  ▪  No Bank Guarantee  ▪  Not a Deposit  ▪  Not Insured by any Government Agency  ▪  May Lose Value

 

 


K.C. Mathews joined UMB in 2002. As executive vice president and chief investment officer, Mr. Mathews is responsible for the development, execution and oversight of UMB’s investment strategy. He is chairman of the Trust Investment, Asset Allocation and Trust Policy Committees. Mr. Mathews has more than 20 years of diverse experience in the investment industry. Prior to joining UMB, he served as vice president and manager of the portfolio management group at Bank of Oklahoma for nine years. Mr. Mathews earned a bachelor’s degree from the University of Minnesota and a master’s degree in business administration from the University of Notre Dame. Mr. Mathews attended the ABA National Trust School at Northwestern University and is a Chartered Financial Analyst and member of the CFA Institute. He is past president of the Kansas City CFA Society and a past president of the Oklahoma Society of Financial Analysts.



Leave a Comment

Tagged: , , , , , , , , ,

Asset allocation 101

  |  Posted by

Every investor has distinct needs when it comes to building a financial strategy. This means that there’s not one singular, surefire formula investors can follow to create a plan that meets their specific objectives. Every situation is unique and subject to change over time. For that reason, it’s important to recognize that building solutions to meet both short- and long-term goals is a continuous process.
asset allocation

Continue Reading

One of the most important factors in determining how an investment performs over time is asset allocation. To that end, investors who are interested in creating an asset allocation plan that matches their risk tolerance and investment goals can benefit from working with an experienced financial services provider where investors have access to professionals with years of experience and a commitment to thorough and thoughtful analysis in creating custom-tailored solutions.

A guide to asset allocation
But what is asset allocation exactly? According to the U.S. Securities and Exchange Commission, it entails sectioning off an investment portfolio among different asset classes such as stocks, bonds and cash in order to manage risk and add diversification to a portfolio. Basically, asset allocation helps investors avoid placing all of their eggs in one basket. The way you decide to diversify your assets is based on personal preference, life stage, time horizon and risk tolerance. The method by which you allocate assets will shift over time  as markets move and your goals and objectives change.

It is important for investors to always be mindful of the balance between risk and reward when it comes to investing. For example, an aggressive investor may be more willing to accept greater short-term fluctuations in their investments in return for a more rewarding end result in the long-run.  These investors typically have a higher percentage of assets invested in stocks and stock funds. Conservative investors may prefer investments that protect their initial stake, although such investments are less likely to provide a substantial long-term return. Certificates of deposit, money market accounts and high quality bonds or short-term bond funds are a few investments that are typically associated with lower risk. Exchange Traded Funds and Mutual fundsare pooled investment vehicles that are easy and cost efficient ways to diversify a portfolio without buying small positions in many single securities.

In the end, a well thought out, diversified portfolio can help investors manage risk while utilizing investments that work with their time horizon and investment objective. Once this has been established, asset allocation should continually be reviewed to ensure it is both meeting the individual’s needs and providing financial peace of mind.

 

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.


Mr. Filing is a Vice President and Portfolio Manager for UMB Private Wealth Management. He is responsible for all aspects of portfolio construction, including asset allocation, security selection and mutual fund analysis for high-net-worth clients. He joined UMB in 2013 and has 15 years of experience in the financial services industry. Mr. Filing is a Certified Financial Planner® and Chartered Financial Consultant®.



Leave a Comment

How People Spend Money On Valentine’s Day

  |  Posted by

What’s your favorite way to dote on loved ones for the holiday?

Valentine's Day spending

Continue Reading

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.



Leave a Comment

Tagged: , ,

Page 2 of 3012345...102030...Last