EX-99.1 2 umbf-ex991_6.htm EX-99.1

Exhibit 99.1

UMB Financial Corporation News Release

1010 Grand Boulevard

Kansas City, MO 64106

816.860.7000

umb.com

//FOR IMMEDIATE RELEASE//

Media Contact: Stephanie Hague: 816.860.5088

Investor Relations Contact: Kay Gregory: 816.860.7106

UMB Financial Corporation Reports Third Quarter Net Income of $94.5 Million

Third quarter 2021 Financial Highlights (all comparisons to prior year unless otherwise noted)

| • | GAAP net income of $94.5 million, or $1.94 per diluted share; net operating income of $95.1 million, or $1.95 per diluted share.

| • | Pre-tax, pre-provision (PTPP) income of $108.8 million, an increase of $9.4 million.

| • | Quarterly average loan balances increased $1.0 billion, or 6.5%.

| • | Excluding Paycheck Protection Program (PPP) balances, average loans increased 15.3% on a linked-quarter, annualized basis.

| • | Quarterly average deposits grew 22.0% to $29.4 billion.

KANSAS CITY, Mo. (October 26, 2021) – UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the third quarter of 2021 of $94.5 million, or $1.94 per diluted share, compared to $87.4 million, or $1.79 per diluted share, in the second quarter of 2021 (linked quarter) and $73.1 million, or $1.52 per diluted share, in the third quarter of 2020.

Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $95.1 million, or $1.95 per diluted share, for the third quarter of 2021, compared to $87.6 million, or $1.80 per diluted share, for the linked quarter and $76.4 million, or $1.59 per diluted share, for the third quarter of 2020. Pre-tax, pre-provision income on a fully tax equivalent basis (PTPP-FTE), a non-GAAP measure reconciled to the components of net income before taxes, the nearest comparable GAAP measure, later in this release, was $115.3 million, or $2.37 per diluted share, for the third quarter of 2021, compared to $138.0 million, or $2.83 per diluted share, for the linked quarter, and $106.2 million, or $2.21 per diluted share, for the third quarter of 2020. These PTPP-FTE results represent a decrease of 16.4% on a linked-quarter basis and an increase of 8.6% compared to the third quarter of 2020.

Summary of quarterly financial results |  | UMB Financial Corporation |
(unaudited, dollars in thousands, except per share data) |  |  |  |  |  |  |  |  |  |  |  |
|  | Q3 |  |  | Q2 |  |  | Q3 |
|  | 2021 |  |  | 2021 |  |  | 2020 |
Net income (GAAP) |  | $ | 94,467 |  |  | $ | 87,412 |  |  | $ | 73,092 |
Earnings per share (diluted) |  |  | 1.94 |  |  |  | 1.79 |  |  |  | 1.52 |
Pre-tax, pre-provision income (Non-GAAP) |  |  | 108,803 |  |  |  | 131,322 |  |  |  | 99,385 |
Pre-tax, pre-provision earnings per share (diluted) |  |  | 2.23 |  |  |  | 2.70 |  |  |  | 2.07 |
Pre-tax, pre-provision income - FTE (Non-GAAP) |  |  | 115,347 |  |  |  | 137,951 |  |  |  | 106,182 |
Pre-tax, pre-provision earnings per share - FTE (diluted) |  |  | 2.37 |  |  |  | 2.83 |  |  |  | 2.21 |
Net operating income (Non-GAAP) |  |  | 95,112 |  |  |  | 87,634 |  |  |  | 76,434 |
Operating earnings per share (diluted) |  |  | 1.95 |  |  |  | 1.80 |  |  |  | 1.59 |
GAAP |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets |  |  | 1.04 | % |  |  | 1.02 | % |  |  | 0.99 | %
Return on average equity |  |  | 11.89 |  |  |  | 11.43 |  |  |  | 10.23 |
Efficiency ratio |  |  | 65.62 |  |  |  | 60.41 |  |  |  | 66.14 |
Non-GAAP |  |  |  |  |  |  |  |  |  |  |  |
Operating return on average assets |  |  | 1.05 | % |  |  | 1.03 | % |  |  | 1.03 | %
Operating return on average equity |  |  | 11.97 |  |  |  | 11.46 |  |  |  | 10.70 |
Operating efficiency ratio |  |  | 65.36 |  |  |  | 60.33 |  |  |  | 64.69 |

Summary of year-to-date financial results |  | UMB Financial Corporation |
(unaudited, dollars in thousands, except per share data) |  | September |  |  | September |
|  | YTD |  |  | YTD |
|  | 2021 |  |  | 2020 |
Net income (GAAP) |  | $ | 274,522 |  |  | $ | 130,182 |
Earnings per share (diluted) |  |  | 5.64 |  |  |  | 2.69 |
Pre-tax, pre-provision income (Non-GAAP) |  |  | 342,191 |  |  |  | 273,283 |
Pre-tax, pre-provision earnings per share (diluted) |  |  | 7.03 |  |  | 5.65 |
Pre-tax, pre-provision income - FTE (Non-GAAP) |  |  | 362,042 |  |  |  | 293,162 |
Pre-tax, pre-provision earnings per share - FTE (diluted) |  |  | 7.44 |  |  | 6.06 |
Net operating income (Non-GAAP) |  |  | 275,526 |  |  |  | 138,388 |
Operating earnings per share (diluted) |  |  | 5.66 |  |  |  | 2.86 |
GAAP |  |  |  |  |  |  |  |
Return on average assets |  |  | 1.07 | % |  |  | 0.62 | %
Return on average equity |  |  | 11.95 |  |  |  | 6.30 |
Efficiency ratio |  |  | 64.06 |  |  |  | 68.40 |
Non-GAAP |  |  |  |  |  |  |  |
Operating return on average assets |  |  | 1.07 | % |  |  | 0.66 | %
Operating return on average equity |  |  | 11.99 |  |  |  | 6.69 |
Operating efficiency ratio |  |  | 63.93 |  |  |  | 67.18 |

“Our market share gains continue to differentiate us from our peers as evidenced in our third quarter 2021 results,” said Mariner Kemper, chairman, president and chief executive officer. “Excluding PPP, average loans increased 15.3% on a linked quarter annualized basis, driven by solid performance in commercial

and industrial lending, as well as in both commercial and residential real estate. Asset quality remained strong in the quarter, with net charge offs of just seven basis points and a $5.0 million reduction in provision for credit losses. Additionally, on a year-to-date basis, total revenue increased 9.8% compared to 2020 despite a challenging interest rate environment, highlighting the resilience of our business model.”

Summary of revenue |  | UMB Financial Corporation |
(unaudited, dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Q3 |  |  | Q2 |  |  | Q3 |  |  | CQ vs. |  |  | CQ vs. |
|  | 2021 |  |  | 2021 |  |  | 2020 |  |  | LQ |  |  | PY |
Net interest income |  | $ | 209,765 |  |  | $ | 201,071 |  |  | $ | 184,384 |  |  | $ | 8,694 |  |  | $ | 25,381 |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust and securities processing |  |  | 56,914 |  |  |  | 53,863 |  |  |  | 50,552 |  |  |  | 3,051 |  |  |  | 6,362 |
Trading and investment banking |  |  | 5,936 |  |  |  | 8,670 |  |  |  | 8,678 |  |  |  | (2,734 | ) |  |  | (2,742 | )
Service charges on deposit accounts |  |  | 19,881 |  |  |  | 22,592 |  |  |  | 19,650 |  |  |  | (2,711 | ) |  |  | 231 |
Insurance fees and commissions |  |  | 285 |  |  |  | 245 |  |  |  | 259 |  |  |  | 40 |  |  |  | 26 |
Brokerage fees |  |  | 2,899 |  |  |  | 2,592 |  |  |  | 4,819 |  |  |  | 307 |  |  |  | (1,920 | )
Bankcard fees |  |  | 17,198 |  |  |  | 16,063 |  |  |  | 15,295 |  |  |  | 1,135 |  |  |  | 1,903 |
Investment securities (losses) gains, net |  |  | (3,510 | ) |  |  | 15,455 |  |  |  | (475 | ) |  |  | (18,965 | ) |  |  | (3,035 | )
Other |  |  | 8,304 |  |  |  | 12,109 |  |  |  | 14,218 |  |  |  | (3,805 | ) |  |  | (5,914 | )
Total noninterest income |  | $ | 107,907 |  |  | $ | 131,589 |  |  | $ | 112,996 |  |  | $ | (23,682 | ) |  | $ | (5,089 | )
Total revenue |  | $ | 317,672 |  |  | $ | 332,660 |  |  | $ | 297,380 |  |  | $ | (14,988 | ) |  | $ | 20,292 |
Net interest income (FTE) |  | $ | 216,309 |  |  | $ | 207,700 |  |  | $ | 191,181 |  |  |  |  |  |  |  |  |
Net interest margin (FTE) |  |  | 2.52 | % |  |  | 2.56 | % |  |  | 2.73 | % |  |  |  |  |  |  |  |
Total noninterest income as a % of total revenue |  |  | 33.97 |  |  |  | 39.56 |  |  |  | 38.00 |  |  |  |  |  |  |  |  |

Net interest income

| • | Net interest income totaled $209.8 million, which is an increase of $8.7 million as compared to the linked quarter. The benefit from growth in average earning assets was partially offset by reduced income from PPP loans. Average earning assets increased $1.5 billion, or 4.7%, driven by an increase in liquidity and investment securities, while interest-bearing liabilities increased $799.2 million, or 4.0%.

| • | Net interest margin for the third quarter was 2.52%, a decrease of four basis points from the linked quarter, driven in large part by earning asset mix shift. Earning asset yields declined five basis points from the linked quarter, driven by a three-basis-point decline in securities yields and mix changes. The cost of interest-bearing liabilities decreased one basis point to 0.22%. Net interest spread decreased four basis points to 2.43% from the linked quarter and was 20 basis points lower than the third quarter of 2020.

| • | On a year-over-year basis, net interest income increased $25.4 million, or 13.8%, driven by a $2.1 billion, or 21.3% increase in average securities, coupled with a $1.0 billion, or 6.5%, increase in average loans. These increases were driven by organic loan growth, excess liquidity, and the company’s PPP participation.

| • | Average deposits increased 5.9% on a linked-quarter basis and 22.0% compared to the third quarter of 2020. Average noninterest-bearing demand deposit balances increased 6.5% on a linked-quarter basis and 38.0% compared to the third quarter of 2020.

Noninterest income

| • | Third quarter 2021 noninterest income decreased $23.7 million, or 18.0%, on a linked-quarter basis, largely due to:

| o | A decrease of $19.0 million in investment securities gains, driven by a mark-to-market decline of $13.2 million on the company’s marketable investments, primarily in Tattooed Chef, Inc. (TTCF), as well as $5.6 million in lower gains on other equity investments that benefited the prior quarter.

| o | A decrease of $3.5 million in derivative income, recorded in other income.

| o | Decreases of $2.7 million in both trading and investment banking and service charges on deposits due to lower trading volume and reduced healthcare income related to customer transfer and conversion fees realized in the prior quarter, respectively.

| o | These decreases were offset by increases of $3.1 million in trust and securities processing income and $1.1 million in bankcard fees. The increase in trust and securities processing income is primarily driven by increases of $2.6 million in fund services income and $0.3 million in trust services income. The increase in bankcard income is due to increased interchange income and reduced rebates expense.

| • | Compared to the prior year, noninterest income in the third quarter of 2021 decreased $5.1 million, or 4.5%, primarily driven by:

| o | A decrease of $4.0 million and $3.4 million in company-owned life insurance income and derivative income, respectively, both recorded in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below.

| o | A decrease of $3.0 million in investment securities gains, primarily due to mark-to-market valuations on the company’s equity investment in TTCF.

| o | A $2.7 million decrease in trading and investment banking due to decreased trading volumes.

| o | These decreases were offset by an increase of $6.4 million in trust and securities processing income and an increase of $1.1 million in bank-owned life insurance, recorded in other income. The increase in trust and securities processing was driven by increases of $7.2 million and $1.3 million in fund services income and corporate trust income, respectively, partially offset by a decrease of $2.2 million trust services income.

Noninterest expense

Summary of noninterest expense |  | UMB Financial Corporation |
(unaudited, dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Q3 |  |  | Q2 |  |  | Q3 |  |  | CQ vs. |  |  | CQ vs. |
|  | 2021 |  |  | 2021 |  |  | 2020 |  |  | LQ |  |  | PY |
Salaries and employee benefits |  | $ | 124,986 |  |  | $ | 120,415 |  |  | $ | 124,194 |  |  | $ | 4,571 |  |  | $ | 792 |
Occupancy, net |  |  | 12,207 |  |  |  | 12,296 |  |  |  | 12,027 |  |  |  | (89 | ) |  |  | 180 |
Equipment |  |  | 19,701 |  |  |  | 19,196 |  |  |  | 20,968 |  |  |  | 505 |  |  |  | (1,267 | )
Supplies and services |  |  | 3,379 |  |  |  | 3,469 |  |  |  | 3,442 |  |  |  | (90 | ) |  |  | (63 | )
Marketing and business development |  |  | 4,863 |  |  |  | 4,797 |  |  |  | 3,038 |  |  |  | 66 |  |  |  | 1,825 |
Processing fees |  |  | 16,562 |  |  |  | 16,501 |  |  |  | 12,812 |  |  |  | 61 |  |  |  | 3,750 |
Legal and consulting |  |  | 7,646 |  |  |  | 8,147 |  |  |  | 7,244 |  |  |  | (501 | ) |  |  | 402 |
Bankcard |  |  | 4,795 |  |  |  | 4,529 |  |  |  | 4,834 |  |  |  | 266 |  |  |  | (39 | )
Amortization of other intangible assets |  |  | 1,110 |  |  |  | 1,157 |  |  |  | 1,524 |  |  |  | (47 | ) |  |  | (414 | )
Regulatory fees |  |  | 3,186 |  |  |  | 2,769 |  |  |  | 2,309 |  |  |  | 417 |  |  |  | 877 |
Other |  |  | 10,434 |  |  |  | 8,062 |  |  |  | 5,603 |  |  |  | 2,372 |  |  |  | 4,831 |
Total noninterest expense |  | $ | 208,869 |  |  | $ | 201,338 |  |  | $ | 197,995 |  |  | $ | 7,531 |  |  | $ | 10,874 |

| • | Noninterest expense for the third quarter of 2021 was $208.9 million, an increase of $7.5 million, or 3.7%, from the linked quarter and an increase of $10.9 million, or 5.5%, from the third quarter of 2020.

| • | The linked-quarter increase in noninterest expense was driven by:

| o | An increase of $4.6 million in salaries and employee benefits, driven primarily by increased bonus expense from higher company performance.

| o | An increase of $2.7 million in operational losses, recorded in other expense.

| • | The year-over-year increase in noninterest expense was driven by:

| o | An increase of $3.8 million in processing fees, due to timing of software projects.

| o | Increases of $3.0 million in operational losses and $1.3 million in charitable contributions expense, both recorded in other expense.

| o | Increases of $1.2 million in travel and entertainment expense and $0.7 million in advertising expense, both recorded in marketing and business development.

| o | An increase of $0.8 million in salary and benefit expense, driven by an increase of $4.5 million in salary and bonus expense, partially offset by a decrease of $3.7 million in employee benefit expense. The decline in employee benefit expense was primarily driven by a decrease of $2.7 million in deferred compensation expense. The decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.

Income taxes

| • | The company’s effective tax rate was 17.0% for the nine months ended September 30, 2021, compared to 11.9% for the same period in 2020. The increase in the effective tax rate for 2021 is primarily attributable to a smaller portion of income being earned from tax-exempt municipal securities.

Balance sheet

| • | Average total assets for the third quarter of 2021 were $35.9 billion compared to $34.3 billion for the linked quarter and $29.5 billion for the same period in 2020.

Summary of average loans and leases - QTD Average | UMB Financial Corporation |
(unaudited, dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Q3 |  |  | Q2 |  |  | Q3 |  |  | CQ vs. |  |  | CQ vs. |
|  | 2021 |  |  | 2021 |  |  | 2020 |  |  | LQ |  |  | PY |
Commercial and industrial |  | $ | 7,097,248 |  |  | $ | 7,402,653 |  |  | $ | 7,043,780 |  |  | $ | (305,405 | ) |  | $ | 53,468 |
Specialty lending |  |  | 486,021 |  |  |  | 505,687 |  |  |  | 456,847 |  |  |  | (19,666 | ) |  |  | 29,174 |
Commercial real estate |  |  | 6,285,348 |  |  |  | 6,165,780 |  |  |  | 5,744,344 |  |  |  | 119,568 |  |  |  | 541,004 |
Consumer real estate |  |  | 2,178,010 |  |  |  | 2,068,663 |  |  |  | 1,755,249 |  |  |  | 109,347 |  |  |  | 422,761 |
Consumer |  |  | 115,702 |  |  |  | 122,439 |  |  |  | 150,814 |  |  |  | (6,737 | ) |  |  | (35,112 | )
Credit cards |  |  | 400,189 |  |  |  | 386,032 |  |  |  | 371,444 |  |  |  | 14,157 |  |  |  | 28,745 |
Leases and other |  |  | 194,235 |  |  |  | 166,420 |  |  |  | 209,238 |  |  |  | 27,815 |  |  |  | (15,003 | )
Total loans |  | $ | 16,756,753 |  |  | $ | 16,817,674 |  |  | $ | 15,731,716 |  |  | $ | (60,921 | ) |  | $ | 1,025,037 |

| • | Average loans for the third quarter of 2021 decreased 0.4% on a linked-quarter basis and increased 6.5% compared to the third quarter of 2020 primarily due to the company’s participation in the PPP. Excluding PPP balances, average loans increased 3.8% on a linked-quarter basis.

Summary of average securities - QTD Average |  | UMB Financial Corporation |
(unaudited, dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Q3 |  |  | Q2 |  |  | Q3 |  |  | CQ vs. |  |  | CQ vs. |
|  | 2021 |  |  | 2021 |  |  | 2020 |  |  | LQ |  |  | PY |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury |  | $ | 17,903 |  |  | $ | 40,013 |  |  | $ | 30,881 |  |  | $ | (22,110 | ) |  | $ | (12,978 | )
U.S. Agencies |  |  | 94,049 |  |  |  | 94,794 |  |  |  | 242,504 |  |  |  | (745 | ) |  |  | (148,455 | )
Mortgage-backed |  |  | 6,766,619 |  |  |  | 6,096,099 |  |  |  | 4,829,586 |  |  |  | 670,520 |  |  |  | 1,937,033 |
State and political subdivisions |  |  | 3,530,031 |  |  |  | 3,565,443 |  |  |  | 3,407,508 |  |  |  | (35,412 | ) |  |  | 122,523 |
Commercial Paper |  |  | — |  |  |  | — |  |  |  | 3,478 |  |  |  | — |  |  |  | (3,478 | )
Corporates |  |  | 158,326 |  |  |  | 127,581 |  |  |  | 58,866 |  |  |  | 30,745 |  |  |  | 99,460 |
Total securities available for sale |  | $ | 10,566,928 |  |  | $ | 9,923,930 |  |  | $ | 8,572,823 |  |  | $ | 642,998 |  |  | $ | 1,994,105 |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and political subdivisions |  | $ | 1,073,133 |  |  | $ | 1,057,091 |  |  | $ | 1,085,297 |  |  | $ | 16,042 |  |  | $ | (12,164 | )
Trading securities |  |  | 25,392 |  |  |  | 21,409 |  |  |  | 32,894 |  |  |  | 3,983 |  |  |  | (7,502 | )
Other securities |  |  | 262,453 |  |  |  | 302,981 |  |  |  | 156,816 |  |  |  | (40,528 | ) |  |  | 105,637 |
Total securities |  | $ | 11,927,906 |  |  | $ | 11,305,411 |  |  | $ | 9,847,830 |  |  | $ | 622,495 |  |  | $ | 2,080,076 |

| • | Average securities available for sale increased 6.5% on a linked-quarter basis and 23.3% compared to the third quarter of 2020.

Summary of average deposits - QTD Average | UMB Financial Corporation |
(unaudited, dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Q3 |  |  | Q2 |  |  | Q3 |  |  | CQ vs. |  |  | CQ vs. |
|  | 2021 |  |  | 2021 |  |  | 2020 |  |  | LQ |  |  | PY |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing demand |  | $ | 11,400,143 |  |  | $ | 10,701,656 |  |  | $ | 8,260,170 |  |  | $ | 698,487 |  |  | $ | 3,139,973 |
Interest-bearing demand and savings |  |  | 17,376,135 |  |  |  | 16,421,742 |  |  |  | 15,125,267 |  |  |  | 954,393 |  |  |  | 2,250,868 |
Time deposits |  |  | 651,727 |  |  |  | 659,228 |  |  |  | 741,750 |  |  |  | (7,501 | ) |  |  | (90,023 | )
Total deposits |  | $ | 29,428,005 |  |  | $ | 27,782,626 |  |  | $ | 24,127,187 |  |  | $ | 1,645,379 |  |  | $ | 5,300,818 |
Noninterest bearing deposits as % of total |  |  | 38.74 | % |  |  | 38.52 | % |  |  | 34.24 | % |  |  |  |  |  |  |  |

| • | Average deposits increased 5.9% on a linked-quarter basis and 22.0% compared to the third quarter of 2020.

| • | Average noninterest-bearing demand deposits increased 6.5% on a linked-quarter basis to $11.4 billion.

Capital

Capital information |  | UMB Financial Corporation |
(unaudited, dollars in thousands, except per share data) |  |  |  |  |  |  |  |  |  |  |  |
|  | September 30, 2021 |  |  | June 30, 2021 |  |  | September 30, 2020 |
Total equity |  | $ | 3,112,840 |  |  | $ | 3,090,244 |  |  | $ | 2,854,180 |
Book value per common share |  |  | 64.37 |  |  |  | 63.92 |  |  |  | 59.43 |
Tangible book value per common share |  |  | 60.44 |  |  |  | 59.96 |  |  |  | 55.19 |
Regulatory capital: |  |  |  |  |  |  |  |  |  |  |  |
Common equity Tier 1 capital |  | $ | 2,811,117 |  |  | $ | 2,730,062 |  |  | $ | 2,402,785 |
Tier 1 capital |  |  | 2,811,117 |  |  |  | 2,730,062 |  |  |  | 2,402,785 |
Total capital |  |  | 3,248,869 |  |  |  | 3,172,878 |  |  |  | 2,854,598 |
Regulatory capital ratios: |  |  |  |  |  |  |  |  |  |  |  |
Common equity Tier 1 capital ratio |  |  | 12.26 | % |  |  | 11.91 | % |  |  | 11.93 | %
Tier 1 risk-based capital ratio |  |  | 12.26 |  |  |  | 11.91 |  |  |  | 11.93 |
Total risk-based capital ratio |  |  | 14.17 |  |  |  | 13.84 |  |  |  | 14.17 |
Tier 1 leverage ratio |  |  | 7.87 |  |  |  | 8.00 |  |  |  | 8.19 |

| • | At September 30, 2021, the regulatory capital ratios presented in the foregoing table exceeded all “well-capitalized” regulatory thresholds.

Asset Quality

Credit quality |  | UMB Financial Corporation |
(unaudited, dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Q3 |  |  | Q2 |  |  | Q1 |  |  | Q4 |  |  | Q3 |
|  | 2021 |  |  | 2021 |  |  | 2021 |  |  | 2020 |  |  | 2020 |
Net charge-offs - Total loans |  | $ | 3,127 |  |  | $ | 28,374 |  |  | $ | 5,310 |  |  | $ | 1,801 |  |  | $ | 5,111 |
Net loan charge-offs as a % of total average loans |  |  | 0.07 | % |  |  | 0.68 | % |  |  | 0.13 | % |  |  | 0.04 | % |  |  | 0.13 | %
Loans over 90 days past due |  | $ | 2,319 |  |  | $ | 1,265 |  |  | $ | 1,773 |  |  | $ | 1,952 |  |  | $ | 1,372 |
Loans over 90 days past due as a % of total loans |  |  | 0.01 | % |  |  | 0.01 | % |  |  | 0.01 | % |  |  | 0.01 | % |  |  | 0.01 | %
Nonaccrual and restructured loans |  | $ | 96,536 |  |  | $ | 58,219 |  |  | $ | 76,706 |  |  | $ | 87,823 |  |  | $ | 93,695 |
Nonaccrual and restructured loans as a % of total loans |  |  | 0.59 | % |  |  | 0.34 | % |  |  | 0.46 | % |  |  | 0.55 | % |  |  | 0.59 | %
Provision for credit losses |  | $ | (5,000 | ) |  | $ | 24,000 |  |  | $ | (7,500 | ) |  | $ | 5,000 |  |  | $ | 16,000 |

| • | Provision for credit losses for the third quarter decreased $29.0 million from the linked quarter and $21.0 million from the third quarter of 2020. Provision expense in the second quarter of 2021 included the impact to the Allowance for Credit Losses (ACL) of a large charge-off, offset by the impacts of positive macro-economic metrics. The decline in provision expense in the third quarter represents a release of ACL based on positive macro-economic data and portfolio credit metrics.

| • | Net charge-offs for the third quarter totaled $3.1 million, or 0.07%, of average loans, compared to $28.4 million, or 0.68%, of average loans in the linked quarter, and $5.1 million, or 0.13%, of average loans for the third quarter of 2020.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors declared a $0.37 per share quarterly cash dividend, payable on January 3, 2022, to shareholders of record at the close of business on December 10, 2021.

Conference Call

The company plans to host a conference call to discuss its third quarter 2021 earnings results on Wednesday, October 27, 2021, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 877-267-8760 or (international) 412-542-4148 and requesting to join the UMB Financial call. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 3Q 2021 Conference Call

A replay of the conference call may be heard through November 10, 2021 by calling (toll-free)

877-344-7529 or (international) 412-317-0088. The replay access code required for playback is 10160723. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial Information

In this release, we provide information about net operating income, operating earnings per share - diluted (operating EPS), operating return on average equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, operating efficiency ratio, pre-tax, pre-provision income, pre-tax, pre-provision earnings per share – diluted (PTPP EPS), pre-tax, pre-provision income on a fully tax equivalent basis (PTPP-FTE), pre-tax, pre-provision FTE earnings per share – diluted (PTPP-FTE EPS), tangible shareholders’ equity, and tangible book value per share, all of which are non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from,

or as a substitute for, GAAP results. The differences between the non-GAAP financial measures – net operating income, operating EPS, operating ROE, operating ROA, operating noninterest expense, operating efficiency ratio, PTPP, PTPP EPS, PTPP-FTE, PTPP-FTE EPS, tangible shareholders’ equity, and tangible book value per share – and t he nearest comparable GAAP financial measures are reconciled later in this release. The company believes that these non-GAAP financial measures and the reconciliations may be useful to investors because they adjust for acquisition-, sev erance-, and COVID-19 related items that management does not believe reflect the company’s fundamental operating performance. COVID-19 related expense includes hazard pay for branch associates, computer hardware expense to support associates working remotely, and additional equipment, cleaning, and janitorial supplies to pro tect the well-being of our associates and customers while on the c ompany’s premises.

Net operating income for the relevant period is defined as GAAP net income, adjusted to reflect the impact of excluding expenses related to acquisitions, severance expense, COVID-19 related expense, and the cumulative tax impact of these adjustments.

Operating EPS (diluted) is calculated as earnings per share as reported, adjusted to reflect, on a per share basis, the impact of excluding the non-GAAP adjustments described above for the relevant period. Operating ROE is calculated as net operating income, divided by the company’s average total shareholders’ equity for the relevant period. Operating ROA is calculated as net operating income, divided by the company’s average assets for the relevant period. Operating noninterest expense for the relevant period is defined as GAAP noninterest expense, adjusted to reflect the pre-tax impact of non-GAAP adjustments described above. Operating efficiency ratio is calculated as the company’s operating noninterest expense, net of amortization of other intangibles, divided by the company’s total non-GAAP revenue (calculated as net interest income plus noninterest income, less gains on sales of securities available for sale, net).

PTPP income for the relevant period is defined as GAAP net income, adjusted to reflect the impact of excluding income tax and provision expenses.

PTPP-FTE for the relevant period is defined as GAAP net interest income on a fully tax equivalent basis plus noninterest income, less noninterest expense.

Tangible shareholders’ equity for the relevant period is defined as GAAP shareholders’ equity, net of intangible assets. Tangible book value per share is defined as tangible shareholders’ equity divided by the Company’s total shares outstanding.

Forward-Looking Statements:

This press release contains, and our other communications may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast,” “target,” “trend,” “plan,” “goal,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, results, or aspirations. All forward-looking statements are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Our actual future objectives, strategies, plans, prospects, performance, condition, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events, circumstances, or aspirations to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2020, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (SEC). In addition to such factors that have been disclosed previously, the COVID-19 pandemic (the pandemic) may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. The pandemic

has created a global public-health crisis that has resulted in widespread volatility and deteriorations in household, business, economic, and market conditions. It is currently adversely affecting the company and its customers, counterparties, employees, and first-party service providers, and the continued adverse impacts on our business, financial position, results of operations, and prospects could be significant. We are not able to accurately predict the extent of the impact of the pandemic on our capital, liquidity, and other financial positions and on our business, results of operations, and prospects at this time, and we believe it will depend on a number of evolving factors, including: (i) the duration, extent and severity of the pandemic; (ii) the response of governmental and non-governmental authorities to the pandemic, which is rapidly changing and not always coordinated or consistent across jurisdictions; (iii) the effect of the pandemic on our customers, counterparties, employees and first-party service providers, which may vary widely, and which is generally expected to increase our credit, counterparty, operational, and other risks; and (iv) the effect of the pandemic on economies and markets, which in turn could adversely affect, among other things, the origination of new loans and the performance of our existing loans. Any forward-looking statement should be evaluated in light of these considerations. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except to the extent required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC.

About UMB:

UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, and serves business and institutional clients nationwide. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn, or follow us on Twitter at @UMBBank. For information about UMB’s operations, approach and relief measures during the COVID-19 pandemic, please visit umb.com/COVID-19.

Consolidated Balance Sheets |  | UMB Financial Corporation |
(unaudited, dollars in thousands) |  |  |  |  |  |  |  |
|  | September 30, |
|  | 2021 |  |  | 2020 |
ASSETS |  |  |  |  |  |  |  |
Loans |  | $ | 16,469,463 |  |  | $ | 15,950,177 |
Allowance for credit losses on loans |  |  | (194,156 | ) |  |  | (211,688 | )
Net loans |  |  | 16,275,307 |  |  |  | 15,738,489 |
Loans held for sale |  |  | 4,645 |  |  |  | 10,978 |
Securities: |  |  |  |  |  |  |  |
Available for sale |  |  | 11,162,690 |  |  |  | 8,719,246 |
Held to maturity, net of allowance for credit losses |  |  | 1,087,308 |  |  |  | 1,067,501 |
Trading securities |  |  | 68,882 |  |  |  | 49,154 |
Other securities |  |  | 274,645 |  |  |  | 159,994 |
Total securities |  |  | 12,593,525 |  |  |  | 9,995,895 |
Federal funds sold and resell agreements |  |  | 1,092,104 |  |  |  | 1,101,313 |
Interest-bearing due from banks |  |  | 5,739,267 |  |  |  | 1,613,675 |
Cash and due from banks |  |  | 426,843 |  |  |  | 440,659 |
Premises and equipment, net |  |  | 273,378 |  |  |  | 295,090 |
Accrued income |  |  | 122,798 |  |  |  | 132,574 |
Goodwill |  |  | 174,518 |  |  |  | 180,867 |
Other intangibles, net |  |  | 15,526 |  |  |  | 22,657 |
Other assets |  |  | 836,374 |  |  |  | 718,775 |
Total assets |  | $ | 37,554,285 |  |  | $ | 30,250,972 |
LIABILITIES |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |
Noninterest-bearing demand |  | $ | 13,189,739 |  |  | $ | 8,752,882 |
Interest-bearing demand and savings |  |  | 17,461,390 |  |  |  | 15,298,562 |
Time deposits under $250,000 |  |  | 415,068 |  |  |  | 491,378 |
Time deposits of $250,000 or more |  |  | 169,613 |  |  |  | 195,085 |
Total deposits |  |  | 31,235,810 |  |  |  | 24,737,907 |
Federal funds purchased and repurchase agreements |  |  | 2,500,340 |  |  |  | 1,929,004 |
Short-term debt |  |  | — |  |  |  | 15,000 |
Long-term debt |  |  | 271,049 |  |  |  | 269,044 |
Accrued expenses and taxes |  |  | 249,567 |  |  |  | 255,720 |
Other liabilities |  |  | 184,679 |  |  |  | 190,117 |
Total liabilities |  |  | 34,441,445 |  |  |  | 27,396,792 |
SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |
Common stock |  |  | 55,057 |  |  |  | 55,057 |
Capital surplus |  |  | 1,102,818 |  |  |  | 1,085,375 |
Retained earnings |  |  | 2,116,568 |  |  |  | 1,750,389 |
Accumulated other comprehensive income, net |  |  | 164,307 |  |  |  | 299,103 |
Treasury stock |  |  | (325,910 | ) |  |  | (335,744 | )
Total shareholders' equity |  |  | 3,112,840 |  |  |  | 2,854,180 |
Total liabilities and shareholders' equity |  | $ | 37,554,285 |  |  | $ | 30,250,972 |

Consolidated Statements of Income |  | UMB Financial Corporation |
(unaudited, dollars in thousands except share and per share data) |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
INTEREST INCOME |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  | $ | 159,242 |  |  | $ | 142,441 |  |  | $ | 463,949 |  |  | $ | 433,471 |
Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable interest |  |  | 33,307 |  |  |  | 26,393 |  |  |  | 90,249 |  |  |  | 79,475 |
Tax-exempt interest |  |  | 24,458 |  |  |  | 25,377 |  |  |  | 74,165 |  |  |  | 74,393 |
Total securities income |  |  | 57,765 |  |  |  | 51,770 |  |  |  | 164,414 |  |  |  | 153,868 |
Federal funds and resell agreements |  |  | 2,389 |  |  |  | 2,248 |  |  |  | 7,762 |  |  |  | 9,273 |
Interest-bearing due from banks |  |  | 1,699 |  |  |  | 299 |  |  |  | 3,235 |  |  |  | 3,360 |
Trading securities |  |  | 231 |  |  |  | 259 |  |  |  | 579 |  |  |  | 1,225 |
Total interest income |  |  | 221,326 |  |  |  | 197,017 |  |  |  | 639,939 |  |  |  | 601,197 |
INTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  | 6,741 |  |  |  | 9,284 |  |  |  | 20,113 |  |  |  | 50,259 |
Federal funds and repurchase agreements |  |  | 1,596 |  |  |  | 1,730 |  |  |  | 5,261 |  |  |  | 10,061 |
Other |  |  | 3,224 |  |  |  | 1,619 |  |  |  | 9,614 |  |  |  | 4,323 |
Total interest expense |  |  | 11,561 |  |  |  | 12,633 |  |  |  | 34,988 |  |  |  | 64,643 |
Net interest income |  |  | 209,765 |  |  |  | 184,384 |  |  |  | 604,951 |  |  |  | 536,554 |
Provision for credit losses |  |  | (5,000 | ) |  |  | 16,000 |  |  |  | 11,500 |  |  |  | 125,500 |
Net interest income after provision for credit losses |  |  | 214,765 |  |  |  | 168,384 |  |  |  | 593,451 |  |  |  | 411,054 |
NONINTEREST INCOME |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust and securities processing |  |  | 56,914 |  |  |  | 50,552 |  |  |  | 165,611 |  |  |  | 143,873 |
Trading and investment banking |  |  | 5,936 |  |  |  | 8,678 |  |  |  | 23,962 |  |  |  | 23,252 |
Service charges on deposit accounts |  |  | 19,881 |  |  |  | 19,650 |  |  |  | 64,449 |  |  |  | 63,805 |
Insurance fees and commissions |  |  | 285 |  |  |  | 259 |  |  |  | 950 |  |  |  | 1,051 |
Brokerage fees |  |  | 2,899 |  |  |  | 4,819 |  |  |  | 8,825 |  |  |  | 20,432 |
Bankcard fees |  |  | 17,198 |  |  |  | 15,295 |  |  |  | 47,934 |  |  |  | 44,756 |
Investment securities (losses) gains, net |  |  | (3,510 | ) |  |  | (475 | ) |  |  | 3,609 |  |  |  | 7,624 |
Other |  |  | 8,304 |  |  |  | 14,218 |  |  |  | 33,053 |  |  |  | 27,083 |
Total noninterest income |  |  | 107,907 |  |  |  | 112,996 |  |  |  | 348,393 |  |  |  | 331,876 |
NONINTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and employee benefits |  |  | 124,986 |  |  |  | 124,194 |  |  |  | 373,082 |  |  |  | 366,192 |
Occupancy, net |  |  | 12,207 |  |  |  | 12,027 |  |  |  | 36,438 |  |  |  | 35,618 |
Equipment |  |  | 19,701 |  |  |  | 20,968 |  |  |  | 58,512 |  |  |  | 63,711 |
Supplies and services |  |  | 3,379 |  |  |  | 3,442 |  |  |  | 10,340 |  |  |  | 11,412 |
Marketing and business development |  |  | 4,863 |  |  |  | 3,038 |  |  |  | 12,005 |  |  |  | 10,962 |
Processing fees |  |  | 16,562 |  |  |  | 12,812 |  |  |  | 48,480 |  |  |  | 39,805 |
Legal and consulting |  |  | 7,646 |  |  |  | 7,244 |  |  |  | 21,548 |  |  |  | 19,574 |
Bankcard |  |  | 4,795 |  |  |  | 4,834 |  |  |  | 14,280 |  |  |  | 14,243 |
Amortization of other intangible assets |  |  | 1,110 |  |  |  | 1,524 |  |  |  | 3,647 |  |  |  | 4,916 |
Regulatory fees |  |  | 3,186 |  |  |  | 2,309 |  |  |  | 8,501 |  |  |  | 7,886 |
Other |  |  | 10,434 |  |  |  | 5,603 |  |  |  | 24,320 |  |  |  | 20,828 |
Total noninterest expense |  |  | 208,869 |  |  |  | 197,995 |  |  |  | 611,153 |  |  |  | 595,147 |
Income before income taxes |  |  | 113,803 |  |  |  | 83,385 |  |  |  | 330,691 |  |  |  | 147,783 |
Income tax expense |  |  | 19,336 |  |  |  | 10,293 |  |  |  | 56,169 |  |  |  | 17,601 |
NET INCOME |  | $ | 94,467 |  |  | $ | 73,092 |  |  | $ | 274,522 |  |  | $ | 130,182 |
PER SHARE DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income – basic |  | $ | 1.96 |  |  | $ | 1.52 |  |  | $ | 5.69 |  |  | $ | 2.70 |
Net income – diluted |  |  | 1.94 |  |  |  | 1.52 |  |  |  | 5.64 |  |  |  | 2.69 |
Dividends |  |  | 0.37 |  |  |  | 0.31 |  |  |  | 1.01 |  |  |  | 0.93 |
Weighted average shares outstanding – basic |  |  | 48,319,414 |  |  |  | 47,947,056 |  |  |  | 48,237,819 |  |  |  | 48,208,447 |
Weighted average shares outstanding – diluted |  |  | 48,742,883 |  |  |  | 48,068,438 |  |  |  | 48,658,290 |  |  |  | 48,352,145 |

Consolidated Statements of Comprehensive Income |  | UMB Financial Corporation |
(unaudited, dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Net income |  | $ | 94,467 |  |  | $ | 73,092 |  |  | $ | 274,522 |  |  | $ | 130,182 |
Other comprehensive (loss) income, before tax: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized gains and losses on debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in unrealized holding gains and losses, net |  |  | (75,717 | ) |  |  | 20,975 |  |  |  | (198,420 | ) |  |  | 269,976 |
Less: Reclassification adjustment for gains included in net income |  |  | (1,058 | ) |  |  | (311 | ) |  |  | (5,078 | ) |  |  | (5,544 | )
Change in unrealized gains and losses on debt securities |  |  | (76,775 | ) |  |  | 20,664 |  |  |  | (203,498 | ) |  |  | 264,432 |
Unrealized gains and losses on derivative hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in unrealized gains and losses on derivative hedges, net |  |  | 432 |  |  |  | (122 | ) |  |  | 3,513 |  |  |  | 19,015 |
Less: Reclassification adjustment for gains included in net income |  |  | (831 | ) |  |  | (1,123 | ) |  |  | (2,550 | ) |  |  | (869 | )
Change in unrealized gains and losses on derivative hedges |  |  | (399 | ) |  |  | (1,245 | ) |  |  | 963 |  |  |  | 18,146 |
Other comprehensive (loss) income, before tax |  |  | (77,174 | ) |  |  | 19,419 |  |  |  | (202,535 | ) |  |  | 282,578 |
Income tax benefit (expense) |  |  | 18,374 |  |  |  | (4,578 | ) |  |  | 48,502 |  |  |  | (66,655 | )
Other comprehensive (loss) income |  |  | (58,800 | ) |  |  | 14,841 |  |  |  | (154,033 | ) |  |  | 215,923 |
Comprehensive income |  | $ | 35,667 |  |  | $ | 87,933 |  |  | $ | 120,489 |  |  | $ | 346,105 |

Consolidated Statements of Shareholders' Equity | UMB Financial Corporation |
(unaudited, dollars in thousands except per share data) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Common Stock |  |  | Capital Surplus |  |  | Retained Earnings |  |  | Accumulated Other Comprehensive Income (Loss) |  |  | Treasury Stock |  |  | Total |
Balance - January 1, 2020 |  | $ | 55,057 |  |  | $ | 1,073,764 |  |  | $ | 1,672,438 |  |  | $ | 83,180 |  |  | $ | (277,999 | ) |  | $ | 2,606,440 |
Total comprehensive income |  |  | — |  |  |  | — |  |  |  | 130,182 |  |  |  | 215,923 |  |  |  | — |  |  |  | 346,105 |
Dividends ($0.93 per share) |  |  | — |  |  |  | — |  |  |  | (45,192 | ) |  |  | — |  |  |  | — |  |  |  | (45,192 | )
Purchase of treasury stock |  |  | — |  |  |  | 615 |  |  |  | — |  |  |  | — |  |  |  | (60,180 | ) |  |  | (59,565 | )
Forfeitures of equity awards, net of issuances |  |  | — |  |  |  | 565 |  |  |  | — |  |  |  | — |  |  |  | 43 |  |  |  | 608 |
Recognition of equity-based compensation |  |  | — |  |  |  | 9,834 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9,834 |
Sale of treasury stock |  |  | — |  |  |  | 158 |  |  |  | — |  |  |  | — |  |  |  | 311 |  |  |  | 469 |
Exercise of stock options |  |  | — |  |  |  | 439 |  |  |  | — |  |  |  | — |  |  |  | 2,081 |  |  |  | 2,520 |
Cumulative effect adjustment |  |  | — |  |  |  | — |  |  |  | (7,039 | ) |  |  | — |  |  |  | — |  |  |  | (7,039 | )
Balance - September 30, 2020 |  | $ | 55,057 |  |  | $ | 1,085,375 |  |  | $ | 1,750,389 |  |  | $ | 299,103 |  |  | $ | (335,744 | ) |  | $ | 2,854,180 |
Balance - January 1, 2021 |  | $ | 55,057 |  |  | $ | 1,090,450 |  |  | $ | 1,891,246 |  |  | $ | 318,340 |  |  | $ | (338,145 | ) |  | $ | 3,016,948 |
Total comprehensive income (loss) |  |  | — |  |  |  | — |  |  |  | 274,522 |  |  |  | (154,033 | ) |  |  | — |  |  |  | 120,489 |
Dividends ($1.01 per share) |  |  | — |  |  |  | — |  |  |  | (49,200 | ) |  |  | — |  |  |  | — |  |  |  | (49,200 | )
Purchase of treasury stock |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (4,269 | ) |  |  | (4,269 | )
Issuances of equity awards, net of forfeitures |  |  | — |  |  |  | (4,374 | ) |  |  | — |  |  |  | — |  |  |  | 5,069 |  |  |  | 695 |
Recognition of equity-based compensation |  |  | — |  |  |  | 13,401 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 13,401 |
Sale of treasury stock |  |  | — |  |  |  | 223 |  |  |  | — |  |  |  | — |  |  |  | 214 |  |  |  | 437 |
Exercise of stock options |  |  | — |  |  |  | 3,118 |  |  |  | — |  |  |  | — |  |  |  | 11,221 |  |  |  | 14,339 |
Balance - September 30, 2021 |  | $ | 55,057 |  |  | $ | 1,102,818 |  |  | $ | 2,116,568 |  |  | $ | 164,307 |  |  | $ | (325,910 | ) |  | $ | 3,112,840 |

Average Balances / Yields and Rates |  | UMB Financial Corporation |
(tax - equivalent basis) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(unaudited, dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended September 30, |
|  | 2021 |  |  | 2020 |
|  | Average |  |  | Average |  |  | Average |  |  | Average |
|  | Balance |  |  | Yield/Rate |  |  | Balance |  |  | Yield/Rate |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans, net of unearned interest |  | $ | 16,756,753 |  |  |  | 3.77 | % |  | $ | 15,731,716 |  |  |  | 3.60 | %
Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  |  | 7,662,106 |  |  |  | 1.72 |  |  |  | 5,478,397 |  |  |  | 1.92 |
Tax-exempt |  |  | 4,240,408 |  |  |  | 2.90 |  |  |  | 4,336,539 |  |  |  | 2.95 |
Total securities |  |  | 11,902,514 |  |  |  | 2.14 |  |  |  | 9,814,936 |  |  |  | 2.37 |
Federal funds and resell agreements |  |  | 1,092,266 |  |  |  | 0.87 |  |  |  | 1,177,590 |  |  |  | 0.76 |
Interest bearing due from banks |  |  | 4,345,422 |  |  |  | 0.16 |  |  |  | 1,087,838 |  |  |  | 0.11 |
Trading securities |  |  | 25,392 |  |  |  | 4.30 |  |  |  | 32,894 |  |  |  | 3.54 |
Total earning assets |  |  | 34,122,347 |  |  |  | 2.65 |  |  |  | 27,844,974 |  |  |  | 2.91 |
Allowance for credit losses |  |  | (203,144 | ) |  |  |  |  |  |  | (211,221 | ) |  |  |  |
Other assets |  |  | 1,953,337 |  |  |  |  |  |  |  | 1,846,919 |  |  |  |  |
Total assets |  | $ | 35,872,540 |  |  |  |  |  |  | $ | 29,480,672 |  |  |  |  |
Liabilities and Shareholders' Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits |  | $ | 18,027,862 |  |  |  | 0.15 | % |  | $ | 15,867,017 |  |  |  | 0.23 | %
Federal funds and repurchase agreements |  |  | 2,596,326 |  |  |  | 0.24 |  |  |  | 1,964,161 |  |  |  | 0.35 |
Borrowed funds |  |  | 270,795 |  |  |  | 4.72 |  |  |  | 115,943 |  |  |  | 5.56 |
Total interest-bearing liabilities |  |  | 20,894,983 |  |  |  | 0.22 |  |  |  | 17,947,121 |  |  |  | 0.28 |
Noninterest-bearing demand deposits |  |  | 11,400,143 |  |  |  |  |  |  |  | 8,260,170 |  |  |  |  |
Other liabilities |  |  | 425,385 |  |  |  |  |  |  |  | 431,528 |  |  |  |  |
Shareholders' equity |  |  | 3,152,029 |  |  |  |  |  |  |  | 2,841,853 |  |  |  |  |
Total liabilities and shareholders' equity |  | $ | 35,872,540 |  |  |  |  |  |  | $ | 29,480,672 |  |  |  |  |
Net interest spread |  |  |  |  |  |  | 2.43 | % |  |  |  |  |  |  | 2.63 | %
Net interest margin |  |  |  |  |  |  | 2.52 |  |  |  |  |  |  |  | 2.73 |

Average Balances / Yields and Rates |  | UMB Financial Corporation |
(tax - equivalent basis) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(unaudited, dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |
|  | Average |  |  | Average |  |  | Average |  |  | Average |
|  | Balance |  |  | Yield/Rate |  |  | Balance |  |  | Yield/Rate |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans, net of unearned interest |  | $ | 16,608,711 |  |  |  | 3.74 | % |  | $ | 14,818,893 |  |  |  | 3.91 | %
Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  |  | 7,022,914 |  |  |  | 1.72 |  |  |  | 5,082,153 |  |  |  | 2.09 |
Tax-exempt |  |  | 4,276,813 |  |  |  | 2.93 |  |  |  | 4,169,829 |  |  |  | 3.02 |
Total securities |  |  | 11,299,727 |  |  |  | 2.18 |  |  |  | 9,251,982 |  |  |  | 2.51 |
Federal funds and resell agreements |  |  | 1,280,177 |  |  |  | 0.81 |  |  |  | 1,070,071 |  |  |  | 1.16 |
Interest bearing due from banks |  |  | 3,506,727 |  |  |  | 0.12 |  |  |  | 1,140,965 |  |  |  | 0.39 |
Trading securities |  |  | 21,475 |  |  |  | 4.28 |  |  |  | 39,580 |  |  |  | 4.55 |
Total earning assets |  |  | 32,716,817 |  |  |  | 2.70 |  |  |  | 26,321,491 |  |  |  | 3.15 |
Allowance for credit losses |  |  | (207,338 | ) |  |  |  |  |  |  | (173,254 | ) |  |  |  |
Other assets |  |  | 1,892,516 |  |  |  |  |  |  |  | 1,742,652 |  |  |  |  |
Total assets |  | $ | 34,401,995 |  |  |  |  |  |  | $ | 27,890,889 |  |  |  |  |
Liabilities and Shareholders' Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits |  | $ | 17,397,225 |  |  |  | 0.15 | % |  | $ | 15,107,688 |  |  |  | 0.44 | %
Federal funds and repurchase agreements |  |  | 2,620,354 |  |  |  | 0.27 |  |  |  | 2,043,942 |  |  |  | 0.66 |
Borrowed funds |  |  | 270,230 |  |  |  | 4.76 |  |  |  | 90,849 |  |  |  | 6.36 |
Total interest-bearing liabilities |  |  | 20,287,809 |  |  |  | 0.23 |  |  |  | 17,242,479 |  |  |  | 0.50 |
Noninterest-bearing demand deposits |  |  | 10,624,524 |  |  |  |  |  |  |  | 7,475,746 |  |  |  |  |
Other liabilities |  |  | 418,397 |  |  |  |  |  |  |  | 411,547 |  |  |  |  |
Shareholders' equity |  |  | 3,071,265 |  |  |  |  |  |  |  | 2,761,117 |  |  |  |  |
Total liabilities and shareholders' equity |  | $ | 34,401,995 |  |  |  |  |  |  | $ | 27,890,889 |  |  |  |  |
Net interest spread |  |  |  |  |  |  | 2.47 | % |  |  |  |  |  |  | 2.65 | %
Net interest margin |  |  |  |  |  |  | 2.55 |  |  |  |  |  |  |  | 2.82 |

Business Segment Information |  | UMB Financial Corporation |
(unaudited, dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended September 30, 2021 |
|  | Commercial Banking |  |  | Institutional Banking |  |  | Personal Banking |  |  | Total |
Net interest income |  | $ | 143,935 |  |  | $ | 21,203 |  |  | $ | 44,627 |  |  | $ | 209,765 |
Provision for credit losses |  |  | (5,720 | ) |  |  | 172 |  |  |  | 548 |  |  |  | (5,000 | )
Noninterest income |  |  | 16,523 |  |  |  | 65,551 |  |  |  | 25,833 |  |  |  | 107,907 |
Noninterest expense |  |  | 74,359 |  |  |  | 73,354 |  |  |  | 61,156 |  |  |  | 208,869 |
Income before taxes |  |  | 91,819 |  |  |  | 13,228 |  |  |  | 8,756 |  |  |  | 113,803 |
Income tax expense |  |  | 15,601 |  |  |  | 2,248 |  |  |  | 1,487 |  |  |  | 19,336 |
Net income |  | $ | 76,218 |  |  | $ | 10,980 |  |  | $ | 7,269 |  |  | $ | 94,467 |
|  | Three Months Ended September 30, 2020 |
|  | Commercial Banking |  |  | Institutional Banking |  |  | Personal Banking |  |  | Total |
Net interest income |  | $ | 122,362 |  |  | $ | 23,375 |  |  | $ | 38,647 |  |  | $ | 184,384 |
Provision for credit losses |  |  | 14,032 |  |  |  | 193 |  |  |  | 1,775 |  |  |  | 16,000 |
Noninterest income |  |  | 22,464 |  |  |  | 62,688 |  |  |  | 27,844 |  |  |  | 112,996 |
Noninterest expense |  |  | 65,175 |  |  |  | 69,667 |  |  |  | 63,153 |  |  |  | 197,995 |
Income before taxes |  |  | 65,619 |  |  |  | 16,203 |  |  |  | 1,563 |  |  |  | 83,385 |
Income tax expense |  |  | 8,100 |  |  |  | 2,000 |  |  |  | 193 |  |  |  | 10,293 |
Net income |  | $ | 57,519 |  |  | $ | 14,203 |  |  | $ | 1,370 |  |  | $ | 73,092 |
|  | Nine Months Ended September 30, 2021 |
|  | Commercial Banking |  |  | Institutional Banking |  |  | Personal Banking |  |  | Total |
Net interest income |  | $ | 412,622 |  |  | $ | 64,599 |  |  | $ | 127,730 |  |  | $ | 604,951 |
Provision for credit losses |  |  | 8,107 |  |  |  | 539 |  |  |  | 2,854 |  |  |  | 11,500 |
Noninterest income |  |  | 60,294 |  |  |  | 202,718 |  |  |  | 85,381 |  |  |  | 348,393 |
Noninterest expense |  |  | 209,144 |  |  |  | 217,211 |  |  |  | 184,798 |  |  |  | 611,153 |
Income before taxes |  |  | 255,665 |  |  |  | 49,567 |  |  |  | 25,459 |  |  |  | 330,691 |
Income tax expense |  |  | 43,427 |  |  |  | 8,419 |  |  |  | 4,323 |  |  |  | 56,169 |
Net income |  | $ | 212,238 |  |  | $ | 41,148 |  |  | $ | 21,136 |  |  | $ | 274,522 |
|  | Nine Months Ended September 30, 2020 |
|  | Commercial Banking |  |  | Institutional Banking |  |  | Personal Banking |  |  | Total |
Net interest income |  | $ | 342,406 |  |  | $ | 84,534 |  |  | $ | 109,614 |  |  | $ | 536,554 |
Provision for credit losses |  |  | 115,533 |  |  |  | 766 |  |  |  | 9,201 |  |  |  | 125,500 |
Noninterest income |  |  | 57,782 |  |  |  | 191,128 |  |  |  | 82,966 |  |  |  | 331,876 |
Noninterest expense |  |  | 186,341 |  |  |  | 215,073 |  |  |  | 193,733 |  |  |  | 595,147 |
Income (loss) before taxes |  |  | 98,314 |  |  |  | 59,823 |  |  |  | (10,354 | ) |  |  | 147,783 |
Income tax expense (benefit) |  |  | 11,709 |  |  |  | 7,125 |  |  |  | (1,233 | ) |  |  | 17,601 |
Net income (loss) |  | $ | 86,605 |  |  | $ | 52,698 |  |  | $ | (9,121 | ) |  | $ | 130,182 |

The company has strategically aligned its operations into the following three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking. Senior executive officers regularly evaluate business segment financial results produced by the company’s internal reporting system in deciding how to allocate resources and assess performance for individual business segments. The company’s reportable segments include certain corporate overhead, technology and service costs that are allocated based on methodologies that are applied consistently between periods. For comparability purposes, amounts in all periods are based on methodologies in effect at September 30, 2021.

Non-GAAP Financial Measures

Net operating income Non-GAAP reconciliations: |  | UMB Financial Corporation |
(unaudited, dollars in thousands except per share data) |  |  |
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Net income (GAAP) |  | $ | 94,467 |  |  | $ | 73,092 |  |  | $ | 274,522 |  |  | $ | 130,182 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Acquisition expense |  |  | — |  |  |  | 78 |  |  |  | — |  |  |  | 324 |
Severance expense |  |  | 639 |  |  |  | 2,859 |  |  |  | 763 |  |  |  | 4,648 |
COVID-19 related expense |  |  | 190 |  |  |  | 1,358 |  |  |  | 527 |  |  |  | 5,575 |
Tax-impact of adjustments (i) |  |  | (184 | ) |  |  | (953 | ) |  |  | (286 | ) |  |  | (2,341 | )
Total Non-GAAP adjustments (net of tax) |  |  | 645 |  |  |  | 3,342 |  |  |  | 1,004 |  |  |  | 8,206 |
Net operating income (Non-GAAP) |  | $ | 95,112 |  |  | $ | 76,434 |  |  | $ | 275,526 |  |  | $ | 138,388 |
Earnings per share - diluted (GAAP) |  | $ | 1.94 |  |  | $ | 1.52 |  |  | $ | 5.64 |  |  | $ | 2.69 |
Acquisition expense |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.01 |
Severance expense |  |  | 0.01 |  |  |  | 0.06 |  |  |  | 0.02 |  |  |  | 0.10 |
COVID-19 related expense |  |  | — |  |  |  | 0.03 |  |  |  | 0.01 |  |  |  | 0.11 |
Tax-impact of adjustments (i) |  |  | — |  |  |  | (0.02 | ) |  |  | (0.01 | ) |  |  | (0.05 | )
Operating earnings per share - diluted (Non-GAAP) |  | $ | 1.95 |  |  | $ | 1.59 |  |  | $ | 5.66 |  |  | $ | 2.86 |
GAAP |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets |  |  | 1.04 | % |  |  | 0.99 | % |  |  | 1.07 | % |  |  | 0.62 | %
Return on average equity |  |  | 11.89 |  |  |  | 10.23 |  |  |  | 11.95 |  |  |  | 6.30 |
Non-GAAP |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating return on average assets |  |  | 1.05 | % |  |  | 1.03 | % |  |  | 1.07 | % |  |  | 0.66 | %
Operating return on average equity |  |  | 11.97 |  |  |  | 10.70 |  |  |  | 11.99 |  |  |  | 6.69 |

(i) Calculated using the company’s marginal tax rate of 22.2%.

Operating noninterest expense and operating efficiency ratio Non-GAAP reconciliations: |  | UMB Financial Corporation |
(unaudited, dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Noninterest expense |  | $ | 208,869 |  |  | $ | 197,995 |  |  | $ | 611,153 |  |  | $ | 595,147 |
Adjustments to arrive at operating noninterest expense (pre-tax): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Acquisition expense |  |  | — |  |  |  | 78 |  |  |  | — |  |  |  | 324 |
Severance expense |  |  | 639 |  |  |  | 2,859 |  |  |  | 763 |  |  |  | 4,648 |
COVID-19 related expense |  |  | 190 |  |  |  | 1,358 |  |  |  | 527 |  |  |  | 5,575 |
Total Non-GAAP adjustments (pre-tax) |  |  | 829 |  |  |  | 4,295 |  |  |  | 1,290 |  |  |  | 10,547 |
Operating noninterest expense (Non-GAAP) |  | $ | 208,040 |  |  | $ | 193,700 |  |  | $ | 609,863 |  |  | $ | 584,600 |
Noninterest expense |  | $ | 208,869 |  |  | $ | 197,995 |  |  | $ | 611,153 |  |  | $ | 595,147 |
Less: Amortization of other intangibles |  |  | 1,110 |  |  |  | 1,524 |  |  |  | 3,647 |  |  |  | 4,916 |
Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A) |  | $ | 207,759 |  |  | $ | 196,471 |  |  | $ | 607,506 |  |  | $ | 590,231 |
Operating noninterest expense |  | $ | 208,040 |  |  | $ | 193,700 |  |  | $ | 609,863 |  |  | $ | 584,600 |
Less: Amortization of other intangibles |  |  | 1,110 |  |  |  | 1,524 |  |  |  | 3,647 |  |  |  | 4,916 |
Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B) |  | $ | 206,930 |  |  | $ | 192,176 |  |  | $ | 606,216 |  |  | $ | 579,684 |
Net interest income |  | $ | 209,765 |  |  | $ | 184,384 |  |  | $ | 604,951 |  |  | $ | 536,554 |
Noninterest income |  |  | 107,907 |  |  |  | 112,996 |  |  |  | 348,393 |  |  |  | 331,876 |
Less: Gains on sales of securities available for sale, net |  |  | 1,058 |  |  |  | 311 |  |  |  | 5,078 |  |  |  | 5,544 |
Total Non-GAAP Revenue (denominator A) |  | $ | 316,614 |  |  | $ | 297,069 |  |  | $ | 948,266 |  |  | $ | 862,886 |
Efficiency ratio (numerator A/denominator A) |  |  | 65.62 | % |  |  | 66.14 | % |  |  | 64.06 | % |  |  | 68.40 | %
Operating efficiency ratio (Non-GAAP) (numerator B/denominator A) |  |  | 65.36 |  |  |  | 64.69 |  |  |  | 63.93 |  |  |  | 67.18 |

Pre-tax, pre-provision income non-GAAP reconciliations: | UMB Financial Corporation |
(unaudited, dollars in thousands except per share data) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Net income before taxes (GAAP) |  | $ | 113,803 |  |  | $ | 83,385 |  |  | $ | 330,691 |  |  | $ | 147,783 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provision for credit losses |  |  | (5,000 | ) |  |  | 16,000 |  |  |  | 11,500 |  |  |  | 125,500 |
Pre-tax, pre-provision income (Non-GAAP) |  | $ | 108,803 |  |  | $ | 99,385 |  |  | $ | 342,191 |  |  | $ | 273,283 |
Pre-tax earnings per share - diluted (GAAP) |  | $ | 2.33 |  |  | $ | 1.74 |  |  | $ | 6.79 |  |  | $ | 3.06 |
Provision for credit losses |  |  | (0.10 | ) |  |  | 0.33 |  |  |  | 0.24 |  |  |  | 2.59 |
Pre-tax, pre-provision earnings per share - diluted (Non-GAAP) |  | $ | 2.23 |  |  | $ | 2.07 |  |  | $ | 7.03 |  |  | $ | 5.65 |

Pre-tax, pre-provision income - FTE Non-GAAP reconciliations: |  | UMB Financial Corporation |
(unaudited, dollars in thousands except per share data) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Net interest income |  | $ | 209,765 |  |  | $ | 184,384 |  |  | $ | 604,951 |  |  | $ | 536,554 |
Adjustments to arrive at net interest income - FTE: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tax equivalent interest |  |  | 6,544 |  |  |  | 6,797 |  |  |  | 19,851 |  |  |  | 19,879 |
Net interest income - FTE |  | $ | 216,309 |  |  | $ | 191,181 |  |  | $ | 624,802 |  |  | $ | 556,433 |
Noninterest income |  |  | 107,907 |  |  |  | 112,996 |  |  |  | 348,393 |  |  |  | 331,876 |
Less: Noninterest expense |  |  | 208,869 |  |  |  | 197,995 |  |  |  | 611,153 |  |  |  | 595,147 |
Pre-tax, pre-provision income - FTE (Non-GAAP) |  | $ | 115,347 |  |  | $ | 106,182 |  |  | $ | 362,042 |  |  | $ | 293,162 |
Net interest income earnings per share - diluted |  | $ | 4.30 |  |  | $ | 3.84 |  |  | $ | 12.43 |  |  | $ | 11.10 |
Tax equivalent interest |  |  | 0.14 |  |  |  | 0.14 |  |  |  | 0.41 |  |  |  | 0.41 |
Net interest income - FTE |  |  | 4.44 |  |  |  | 3.98 |  |  |  | 12.84 |  |  |  | 11.51 |
Noninterest income |  |  | 2.22 |  |  |  | 2.35 |  |  |  | 7.16 |  |  |  | 6.86 |
Less: Noninterest expense |  |  | 4.29 |  |  |  | 4.12 |  |  |  | 12.56 |  |  |  | 12.31 |
Pre-tax, pre-provision income - FTE earnings per share - diluted (Non-GAAP) |  | $ | 2.37 |  |  | $ | 2.21 |  |  | $ | 7.44 |  |  | $ | 6.06 |

Tangible book value non-GAAP reconciliations: | UMB Financial Corporation |
(unaudited, dollars in thousands except share and per share data) |  |  |  |  |  |  |  |
|  | As of September 30, |
|  | 2021 |  |  | 2020 |
Total shareholders' equity (GAAP) |  | $ | 3,112,840 |  |  | $ | 2,854,180 |
Less: Intangible assets |  |  |  |  |  |  |  |
Goodwill |  |  | 174,518 |  |  |  | 180,867 |
Other intangibles, net |  |  | 15,526 |  |  |  | 22,657 |
Total intangibles, net |  |  | 190,044 |  |  |  | 203,524 |
Total tangible shareholders' equity (Non-GAAP) |  | $ | 2,922,796 |  |  | $ | 2,650,656 |
Total shares outstanding |  |  | 48,355,373 |  |  |  | 48,028,679 |
Ratio of total shareholders' equity (book value) per share |  | $ | 64.37 |  |  | $ | 59.43 |
Ratio of total tangible shareholders' equity (tangible book value) per share (Non-GAAP) |  |  | 60.44 |  |  |  | 55.19 |