Profile: UMB Financial Corp (UMBF.O)
24 Nov 2015
UMB Financial Corporation, incorporated on June 13, 1967, is a financial holding company. The Company’s primary banking subsidiary is UMB Bank, National Association (the Bank). The Company, along with its subsidiaries, supplies banking services, institutional investment management, asset servicing, and payment solutions to customers in the United States and across the world. The Company’s products and services are grouped into four segments: Bank, Institutional Investment Management, Asset Servicing and Payment Solutions. The Company’s loan portfolio consists of commercial loans, real estate loans, consumer loans and leases. The Company offers real estate loans for construction, commercial, residential and HELOC applications. During the year ended December 31, 2014, Commercial loans were to 51.1% of total loans, HELOC loans comprised 8.6% of total loans, and residential real estate represented 4.3% of total loans.
The Company’s security portfolio provides liquidity as a result of the composition and cash flow characteristics of the underlying securities. In addition to providing a potential source of liquidity, the security portfolio can be used as a tool to manage interest rate sensitivity. The Company maintains high liquidity levels while investing in only high-grade securities. Securities available for sale and securities held to maturity comprised 44% of earning assets as of December 31, 2014. Total investment securities were $7.3 billion at December 31, 2014. Securities available for sale comprised 94.9% of the Company’s investment securities portfolio at December 31, 2014. Securities available for sale had a net unrealized gain of $17.9 million as of December 31, 2014.
Deposits represent the Company’s primary funding source for its asset base. In addition to the core deposits garnered by the Company’s retail branch structure, the Company focuses on its cash management services, as well as its asset management and mutual fund servicing segments in order to attract and retain additional core deposits. Deposits totaled $13.6 billion at December 31, 2014. Deposits averaged $12.7 billion in 2014.
The Bank provides banking services to commercial, retail, Government and correspondent bank customers through the Company’s branches, call center, internet banking, and ATM network. The Bank’s services include traditional commercial and consumer banking, treasury management, leasing, foreign exchange, merchant bankcard, wealth management, brokerage, insurance, capital markets, investment banking, corporate trust and correspondent banking. The Bank offer banking services to commercial, retail, Government and correspondent-bank customers, including asset-management, trust, bank-card and cash-management services.
Institutional Investment Management
Institutional Investment Management provides equity and fixed income investment strategies in the intermediary and institutional markets. Its institutional investment services are offered through mutual funds, traditional separate accounts and sub-advisory relationships.
Asset Servicing provides services to the asset management industry, supporting a range of investment products, including mutual funds, alternative investments and managed accounts. The services include fund administration, fund accounting, investor services, transfer agency, distribution, marketing, custody, alternative investment services, managed account services, and collective and multiple-series trust services.
Payment Solutions segment provides consumer and commercial credit and debit card, prepaid debit card solutions, healthcare services, and institutional cash management. The Healthcare services include health savings account and flexible savings account products for healthcare providers, third-party administrators and employers.
UMB Financial Corp
1010 Grand Blvd
KANSAS CITY MO 64106-2202