Equibles

8-K

UMB FINANCIAL CORP (UMBF)

8-K 2024-07-30 For: 2024-07-30
View Original
Added on April 04, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): 7/30/2024

UMB FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Commission File Number: 001-38481

Missouri 43-0903811
(State or other jurisdiction of (IRS Employer
incorporation) Identification No.)

1010 Grand Blvd., Kansas City, MO 64106

(Address of principal executive offices, including zip code)

(816)

860-7000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13c-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $1.00 Par Value UMBF The NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On July 30, 2024, UMB Financial Corporation (the “Company”) issued a press release announcing the financial results for the Company for the quarter and period ended June 30, 2024. A copy of the press release is attached as Exhibit 99.1 and the information is hereby incorporated by reference herein. The Company does not incorporate by reference information presented at any website referenced in the press release.

The information contained in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 hereto, is being furnished and shall not be deemed to be “filed” with the Securities and Exchange Commission (“SEC”) for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section and is not incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference to this Current Report on Form 8-K in such a filing.

Item 7.01 Regulation FD Disclosure

On July 30, 2024, the Company announced in the same press release that the Board of Directors of the Company had declared a quarterly dividend of $0.39 per share that is payable on October 1, 2024 to shareholders of record of the Company as of the close of business on September 10, 2024.

The Company is furnishing a copy of materials that will be used in the Company’s shareholder conference call at 8:30 a.m. (CT) on July 31, 2024. A copy of the materials is attached as Exhibit 99.2 and will be available on the Company’s website at www.umb.com. The materials are dated July 30, 2024, and the Company disclaims any obligation to correct or update any of the materials in the future.

The information provided under Item 7.01 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 hereto, is being furnished and is not deemed to be “filed” with the SEC for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section and is not incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference to this Current Report on Form 8-K in such a filing. The Company does not incorporate by reference to this Current Report on Form 8-K information presented at any website referenced in this report or in any of the Exhibits attached hereto.

Item 9.01 Financial Statements and Exhibits

99.1 Press Release announcing financial results for the quarter and period ended June 30, 2024, and announcing dividend declaration.
99.2 Investor Presentation Materials, dated July 30, 2024.
104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

UMB FINANCIAL CORPORATION
By: /s/ Ram Shankar
Ram Shankar<br><br>Chief Financial Officer

Date: July 30, 2024

EX-99.1

Exhibit 99.1

img104034057_0.jpg

UMB Financial Corporation News Release

1010 Grand Boulevard

Kansas City, MO 64106

816.860.7000

umb.com

//FOR IMMEDIATE RELEASE//

Media Contact: Stephanie Hague: 816.729.1027

Investor Relations Contact: Kay Gregory: 816.860.7106

UMB Financial Corporation Reports Second Quarter Net Income of $101.3 Million and Net Operating Income(i) of $105.9 Million.

Second Quarter 2024 Financial Highlights

  • GAAP net income of $101.3 million, or $2.07 per diluted share.
  • Net operating income(i) of $105.9 million, or $2.16 per diluted share.
  • Average loans increased 7.7% on a linked-quarter, annualized basis, to $23.8 billion.
  • Average loans increased $1.6 billion, or 7.3%, as compared to the second quarter of 2023.
  • Average deposits increased 9.7% on a linked-quarter, annualized basis, to $34.3 billion.
  • Net interest margin was 2.51%, an increase of three basis points from the linked quarter.
  • Credit quality remained strong, with net charge-offs of just 0.05% of average loans in both the second quarter and the six months ended June 30, 2024.

KANSAS CITY, Mo. (July 30, 2024) – UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the second quarter of 2024 of $101.3 million, or $2.07 per diluted share, compared to $110.3 million, or $2.25 per diluted share, in the first quarter (linked quarter) and $90.1 million, or $1.85 per diluted share, in the second quarter of 2023.

Net operating income, a non-GAAP financial measure reconciled later in this release to net income, the nearest comparable GAAP measure, was $105.9 million, or $2.16 per diluted share, for the second quarter of 2024, compared to $120.7 million, or $2.47 per diluted share, for the linked quarter and $93.8 million, or $1.93 per diluted share, for the second quarter of 2023. Operating pre-tax, pre-provision income (operating PTPP), a non-GAAP measure reconciled later in this release to the components of net income before taxes, the nearest comparable GAAP measure, was $146.8 million, or $3.00 per diluted share, for the second quarter of 2024, compared to $157.5 million, or $3.22 per diluted share, for the linked quarter, and $127.9 million, or $2.63 per diluted share, for the second quarter of 2023. These operating PTPP results represent a decrease of 6.7% on a linked-quarter basis and an increase of 14.8% compared to the second quarter of 2023.

“We are pleased with our second quarter financial results, including continued net interest income growth driven by balance sheet growth and net interest margin expansion, and solid credit metrics,” said Mariner Kemper, UMB Financial Corporation chairman and chief executive officer.

“In the second quarter, average loans increased 7.3% to $23.8 billion, and average deposits increased $2.9 billion or 9.1% from one year ago. Our borrowers remain cautiously optimistic, with some continuing concerns around the geopolitical environment, inflation, and the timing of potential rate cuts. Competition

for good deals remains robust, however, our focus on relationships and service are our differentiators, allowing us to continue to take market share.

"Credit quality remains very strong, with net charge-offs just 0.05% of average loans for both the second quarter and year-to-date. Net charge-offs have averaged a mere four basis points over the past eight quarters. Non-performing loans fell to just 0.06% of loans for the second quarter.

"Our teams excel at building and maintaining strong relationships across our footprint, and we’re focused on continuing our long track record of growth. We remain excited about the future, including our pending acquisition of Heartland Financial and the opportunity we see as a combined company.”

(i) A non-GAAP financial measure reconciled later in this release to net income, the nearest comparable GAAP measure.

Second Quarter 2024 earnings discussion

Summary of quarterly financial results UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
Q2 Q1 Q2
2024 2024 2023
Net income (GAAP) $ 101,345 $ 110,258 $ 90,110
Earnings per share - diluted (GAAP) 2.07 2.25 1.85
Operating pre-tax, pre-provision income (Non-GAAP)(i) 146,840 157,451 127,929
Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)(i) 3.00 3.22 2.63
Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i) 153,247 163,967 134,504
Operating pre-tax, pre-provision earnings per share - FTE - diluted (Non-GAAP)(i) 3.13 3.35 2.77
Net operating income (Non-GAAP)(i) 105,873 120,712 93,841
Operating earnings per share - diluted (Non-GAAP)(i) 2.16 2.47 1.93
GAAP
Return on average assets 0.96 % 1.06 % 0.90 %
Return on average equity 12.73 14.11 12.56
Efficiency ratio 63.37 63.44 65.59
Non-GAAP(i)
Operating return on average assets 1.00 % 1.16 % 0.93 %
Operating return on average equity 13.30 15.44 13.08
Operating efficiency ratio 61.86 60.04 64.24

(i) See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.

Summary of year-to-date financial results UMB Financial Corporation
(unaudited, dollars in thousands, except per share data) June June
YTD YTD
2024 2023
Net income (GAAP) $ 211,603 $ 182,547
Earnings per share - diluted (GAAP) 4.32 3.75
Operating pre-tax, pre-provision income (Non-GAAP)(i) 304,291 263,298
Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)(i) 6.22 5.41
Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i) 317,214 276,428
Operating pre-tax, pre-provision earnings per share - FTE - diluted (Non-GAAP)(i) 6.48 5.68
Net operating income (Non-GAAP)(i) 226,585 186,677
Operating earnings per share - diluted (Non-GAAP)(i) 4.63 3.83
GAAP
Return on average assets 1.01 % 0.93 %
Return on average equity 13.41 13.14
Efficiency ratio 63.41 64.34
Non-GAAP(i)
Operating return on average assets 1.08 % 0.95 %
Operating return on average equity 14.36 13.44
Operating efficiency ratio 60.94 63.61
Summary of revenue UMB Financial Corporation
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(unaudited, dollars in thousands)
Q2 Q1 Q2 CQ vs. CQ vs.
2024 2024 2023 LQ PY
Net interest income $ 245,108 $ 239,434 $ 225,611 $ 5,674 $ 19,497
Noninterest income:
Trust and securities processing 70,010 69,478 61,589 532 8,421
Trading and investment banking 5,461 5,462 4,800 (1 ) 661
Service charges on deposit accounts 22,261 20,757 21,381 1,504 880
Insurance fees and commissions 267 283 225 (16 ) 42
Brokerage fees 14,020 13,160 13,604 860 416
Bankcard fees 22,346 21,968 18,579 378 3,767
Investment securities (losses) gains, net (1,867 ) 9,371 900 (11,238 ) (2,767 )
Other 12,421 18,765 17,004 (6,344 ) (4,583 )
Total noninterest income $ 144,919 $ 159,244 $ 138,082 $ (14,325 ) $ 6,837
Total revenue $ 390,027 $ 398,678 $ 363,693 $ (8,651 ) $ 26,334
Net interest income (FTE) $ 251,515 $ 245,950 $ 232,186
Net interest margin (FTE) 2.51 % 2.48 % 2.44 %
Total noninterest income as a % of total revenue 37.2 39.9 38.0

Net interest income

  • Second quarter 2024 net interest income totaled $245.1 million, an increase of $5.7 million, or 2.4%, from the linked quarter, driven primarily by continued growth in average loans and higher levels of liquidity, partially offset by higher interest expense.

  • Average earning assets increased $359.7 million, or 0.9%, from the linked quarter, largely driven by an increase of $451.8 million in average loans and an increase of $182.8 million in interest-bearing due from banks, partially offset by a decrease of $314.6 million in average securities.

  • Average interest-bearing liabilities increased $375.9 million, or 1.3%, from the linked quarter, primarily driven by an increase of $778.0 million in interest-bearing deposits, partially offset by a decrease of $439.0 million in borrowed funds. Average noninterest-bearing demand deposits increased $36.6 million, or 0.4%, as compared to the linked quarter.

  • Net interest margin for the second quarter was 2.51%, an increase of three basis points from the linked quarter, driven by increased loan yields, the benefit of free funds, and earning asset mix changes, partially offset by the increased cost of interest-bearing liabilities. The cost of interest-bearing liabilities increased 12 basis points to 4.15%. Total cost of funds increased 10 basis points from the linked quarter to 3.06%. Both average loan yields and earning asset yields increased 13 basis points from the linked quarter.

  • On a year-over-year basis, net interest income increased $19.5 million, or 8.6%, driven by a $1.6 billion, or 7.3%, increase in average loans, partially offset by higher interest costs due to unfavorable mix shift in the composition of liabilities as well as the impact of higher short-term interest rates.

  • Compared to the second quarter of 2023, average earning assets increased $2.0 billion, or 5.2%, largely driven by the increase in average loans noted above and an increase of $779.2 million in interest-bearing due from banks, partially offset by a decrease of $360.3 million in average securities.

  • Average deposits increased 9.1% compared to the second quarter of 2023. Average noninterest-bearing demand deposit balances decreased 4.1% compared to the second quarter of 2023, driven by migration to rate-bearing deposit categories, as expected in a higher interest rate environment. Average demand deposit balances comprised 29.4% of total deposits, compared to 30.0% in the linked quarter and 33.5% in the second quarter of 2023.

  • Average borrowed funds decreased $439.0 million as compared to the linked quarter and $1.4 billion as compared to the second quarter of 2023, driven by short-term borrowings with the Federal Home Loan Bank and the Federal Reserve.

Noninterest income

  • Second quarter 2024 noninterest income decreased $14.3 million, or 9.0%, on a linked-quarter basis, largely due to:

  • $11.2 million in lower investment securities gains, primarily driven by a net $8.6 million gain on disposition of two of the company's non-marketable securities recognized in the first quarter and a $2.6 million reduction in value of one of the company's non-marketable securities during the second quarter.

  • A decrease of $5.8 million in other miscellaneous income, recorded in other income, related to a $4.0 million legal settlement and a $1.8 million gain on sale of land, both recorded during the first quarter of 2024.

  • These decreases were partially offset by an increase of $1.6 million in derivative income, recorded in other income, and an increase of $1.5 million in service charges on deposit accounts primarily due to higher healthcare income related to customer transfer and conversion.

  • Compared to the prior year, noninterest income in the second quarter of 2024 increased $6.8 million, or 5.0%, primarily driven by:

  • Increases of $5.6 million in fund services income, $1.5 million in corporate trust income, and $1.3 million in trust income, all recorded in trust and securities processing.

  • An increase of $3.8 million in bankcard income primarily driven by higher interchange revenue and lower rebates and rewards expense as compared to the prior year.

  • An increase of $1.0 million in healthcare income related to customer transfer and conversion, recorded in service charges on deposit accounts.

  • Increases of $0.5 million in bank-owned life insurance income and $0.5 million in derivative income, both recorded in other income.

  • These increases were partially offset by the following decreases:

  • A decrease of $4.3 million in other miscellaneous income driven by a $4.0 million gain on sale of other assets recorded in the second quarter of 2023.

  • $2.8 million in lower investment securities gains, primarily driven by a $2.6 million reduction in value of one of the company's non-marketable securities during the second quarter of 2024.

Noninterest expense

Summary of noninterest expense UMB Financial Corporation
(unaudited, dollars in thousands)
Q2 Q1 Q2 CQ vs. CQ vs.
2024 2024 2023 LQ PY
Salaries and employee benefits $ 142,861 $ 143,006 $ 143,312 $ (145 ) $ (451 )
Occupancy, net 11,723 12,270 11,746 (547 ) (23 )
Equipment 15,603 16,503 17,086 (900 ) (1,483 )
Supplies and services 3,404 3,301 4,195 103 (791 )
Marketing and business development 6,598 6,025 7,124 573 (526 )
Processing fees 29,701 27,936 26,572 1,765 3,129
Legal and consulting 16,566 7,894 7,059 8,672 9,507
Bankcard 11,818 10,567 8,307 1,251 3,511
Amortization of other intangible assets 1,911 1,960 2,117 (49 ) (206 )
Regulatory fees 2,568 19,395 6,123 (16,827 ) (3,555 )
Other 6,314 5,947 7,032 367 (718 )
Total noninterest expense $ 249,067 $ 254,804 $ 240,673 $ (5,737 ) $ 8,394

  • GAAP noninterest expense for the second quarter of 2024 was $249.1 million, a decrease of $5.7 million, or 2.3%, from the linked quarter and an increase of $8.4 million, or 3.5% from the second quarter of 2023. Operating noninterest expense, a non-GAAP financial measure reconciled later in this release to noninterest expense, the nearest comparable GAAP measure, was $243.2 million for the second quarter of 2024, an increase of $2.0 million, or 0.8%, from the linked quarter and an increase of $7.4 million, or 3.1%, from the second quarter of 2023.

  • The linked-quarter decrease in GAAP noninterest expense was driven by:

  • A decrease of $16.8 million in regulatory fees expense, driven by the lower industry-wide FDIC special assessment levied on banks to recoup the losses related to two of the bank failures in March 2023. The results for the second quarter of 2024 include a reduction of $3.8 million in pre-tax FDIC special assessment expense while the first quarter included pre-tax expense of $13.0 million, both related to changes made in the loss estimates by the FDIC.

  • This decrease was partially offset by the following increases:

  • An increase of $8.7 million in legal and consulting expense driven by expense related to the announced acquisition of Heartland Financial USA, Inc.

  • An increase of $1.8 million in processing fees expense due to increased software subscription costs.

  • An increase of $1.3 million in bankcard expense driven by higher administrative expense.

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

  • An increase of $9.5 million in legal and consulting expense, primarily driven by expense related to the announced acquisition of Heartland Financial USA, Inc.

  • An increase of $3.5 million in bankcard expense driven by higher administrative expense.

  • These increases were partially offset by a decrease of $3.6 million in regulatory fees expense driven by the aforementioned reduction of $3.8 million in FDIC special assessment expense recorded in the second quarter of 2024.

Income taxes

  • The company’s effective tax rate was 18.9% for the six months ended June 30, 2024, compared to 17.6% for the same period in 2023. The increase in the effective tax rate in 2024 is primarily attributable to a smaller portion of income being earned from tax-exempt municipal securities and a decrease in excess tax benefits associated with stock compensation recorded in 2024 as compared to the prior year.

Balance sheet

  • Average total assets for the second quarter of 2024 were $42.5 billion compared to $42.0 billion for the linked quarter and $40.4 billion for the same period in 2023.
Summary of average loans and leases - QTD Average UMB Financial Corporation
(unaudited, dollars in thousands)
Q2 Q1 Q2 CQ vs. CQ vs.
2024 2024 2023 LQ PY
Commercial and industrial $ 9,926,855 $ 9,942,457 $ 9,724,300 $ (15,602 ) $ 202,555
Specialty lending 502,646 485,989 574,220 16,657 (71,574 )
Commercial real estate 9,360,991 9,026,511 8,178,463 334,480 1,182,528
Consumer real estate 2,998,560 2,968,320 2,833,739 30,240 164,821
Consumer 159,743 154,062 139,705 5,681 20,038
Credit cards 617,502 489,546 485,749 127,956 131,753
Leases and other 239,532 287,158 255,425 (47,626 ) (15,893 )
Total loans $ 23,805,829 $ 23,354,043 $ 22,191,601 $ 451,786 $ 1,614,228
  • Average loans for the second quarter of 2024 increased $451.8 million, or 1.9%, on a linked-quarter basis and $1.6 billion, or 7.3%, compared to the second quarter of 2023.
Summary of average securities - QTD Average UMB Financial Corporation
(unaudited, dollars in thousands)
Q2 Q1 Q2 CQ vs. CQ vs.
2024 2024 2023 LQ PY
Securities available for sale:
U.S. Treasury $ 900,348 $ 1,127,611 $ 797,104 $ (227,263 ) $ 103,244
U.S. Agencies 210,151 199,719 189,091 10,432 21,060
Mortgage-backed 3,667,289 3,595,619 3,813,234 71,670 (145,945 )
State and political subdivisions 1,213,000 1,254,148 1,319,398 (41,148 ) (106,398 )
Corporates 323,751 341,142 349,318 (17,391 ) (25,567 )
Collateralized loan obligations 336,273 347,063 348,078 (10,790 ) (11,805 )
Total securities available for sale $ 6,650,812 $ 6,865,302 $ 6,816,223 $ (214,490 ) $ (165,411 )
Securities held to maturity:
U.S. Agencies $ 120,563 $ 123,225 $ 123,135 $ (2,662 ) $ (2,572 )
Mortgage-backed 2,656,096 2,707,780 2,878,657 (51,684 ) (222,561 )
State and political subdivisions 2,798,371 2,821,799 2,822,218 (23,428 ) (23,847 )
Total securities held to maturity $ 5,575,030 $ 5,652,804 $ 5,824,010 $ (77,774 ) $ (248,980 )
Trading securities $ 26,381 $ 17,893 $ 12,538 $ 8,488 $ 13,843
Other securities 448,015 478,805 407,754 (30,790 ) 40,261
Total securities $ 12,700,238 $ 13,014,804 $ 13,060,525 $ (314,566 ) $ (360,287 )
  • Average total securities decreased 2.4% on a linked-quarter basis and 2.8% compared to the second quarter of 2023.
  • At June 30, 2024, the unrealized pre-tax net loss on the available-for-sale securities portfolio was $678.7 million, or 8.7% of the $7.8 billion amortized cost balance. At June 30, 2024, the unrealized pre-tax net loss on the securities designated as held to maturity was $636.2 million, or 11.5% of the $5.5 billion amortized cost value.
Summary of average deposits - QTD Average UMB Financial Corporation
(unaudited, dollars in thousands)
Q2 Q1 Q2 CQ vs. CQ vs.
2024 2024 2023 LQ PY
Deposits:
Noninterest-bearing demand $ 10,103,035 $ 10,066,409 $ 10,535,325 $ 36,626 $ (432,290 )
Interest-bearing demand and savings 21,914,116 20,701,659 17,463,022 1,212,457 4,451,094
Time deposits 2,323,610 2,758,064 3,476,616 (434,454 ) (1,153,006 )
Total deposits $ 34,340,761 $ 33,526,132 $ 31,474,963 $ 814,629 $ 2,865,798
Noninterest bearing deposits as % of total 29.4 % 30.0 % 33.5 %
  • Average deposits increased 2.4% on a linked-quarter basis and 9.1% compared to the second quarter of 2023.

Capital

Capital information UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
June 30, 2024 March 31, 2024 June 30, 2023
Total equity $ 3,227,347 $ 3,152,816 $ 2,831,628
Accumulated other comprehensive loss, net (605,634 ) (594,538 ) (685,831 )
Book value per common share 66.21 64.68 58.36
Tangible book value per common share (Non-GAAP)(i) 60.58 59.01 52.54
Regulatory capital:
Common equity Tier 1 capital $ 3,591,755 $ 3,503,837 $ 3,273,841
Tier 1 capital 3,591,755 3,503,837 3,273,841
Total capital 4,214,712 4,115,097 3,870,101
Regulatory capital ratios:
Common equity Tier 1 capital ratio 11.14 % 11.09 % 10.65 %
Tier 1 risk-based capital ratio 11.14 11.09 10.65
Total risk-based capital ratio 13.08 13.03 12.59
Tier 1 leverage ratio 8.50 8.39 8.16

(i) See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.

  • At June 30, 2024, 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)
Q2 Q1 Q4 Q3 Q2
2024 2024 2023 2023 2023
Net charge-offs (recoveries) - total loans $ 2,856 $ 3,017 $ 1,352 $ 4,618 $ (139 )
Net loan charge-offs (recoveries) as a % of total average loans 0.05 % 0.05 % 0.02 % 0.08 % (0.00 )%
Loans over 90 days past due $ 5,644 $ 3,076 $ 3,111 $ 3,044 $ 10,675
Loans over 90 days past due as a % of total loans 0.02 % 0.01 % 0.01 % 0.01 % 0.05 %
Nonaccrual and restructured loans $ 13,743 $ 17,756 $ 13,212 $ 17,042 $ 19,347
Nonaccrual and restructured loans as a % of total loans 0.06 % 0.08 % 0.06 % 0.07 % 0.09 %
Provision for credit losses $ 14,050 $ 10,000 $ — $ 4,977 $ 13,000
  • Provision for credit losses for the second quarter increased $4.1 million from the linked quarter and $1.1 million from the second quarter of 2023. These changes are driven largely by ongoing re-calibrations of econometric loss models and underlying macro-economic drivers for certain loan portfolios and $0.6 billion increase in end-of-period loans from March 31, 2024, as well as general portfolio trends in the current period as compared to the prior periods.
  • Net charge-offs for the second quarter totaled $2.9 million, or 0.05% of average loans, compared to $3.0 million, or 0.05% of average loans in the linked quarter, and net recoveries of $0.1 million for the second quarter of 2023.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors declared a $0.39 per share quarterly cash dividend, payable on October 1, 2024, to shareholders of record at the close of business on September 10, 2024.

Conference Call

The company will host a conference call to discuss its second quarter 2024 earnings results on Wednesday, July 31, 2024, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 833-470-1428 or (international) 404-975-4839 and requesting to join the UMB Financial call with access code 944750. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 2Q 2024 Conference Call

A replay of the conference call may be heard through August 14, 2024, by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 435652. 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, operating pre-tax, pre-provision income (operating PTPP), operating pre-tax, pre-provision earnings per share – diluted (operating PTPP EPS), operating pre-tax, pre-provision income on a fully tax equivalent basis (operating PTPP-FTE), operating pre-tax, pre-provision FTE earnings per share – diluted (operating 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, operating PTPP, operating PTPP EPS, operating PTPP-FTE, operating PTPP-FTE EPS, tangible shareholders’ equity, and tangible book value per share – and the 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- and severance-related items, and the FDIC special assessment that management does not believe reflect the company’s fundamental operating performance.

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, the FDIC special assessment, 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).

Operating PTPP income for the relevant period is defined as GAAP net interest income plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions and severance, and the FDIC special assessment.

Operating PTPP-FTE for the relevant period is defined as GAAP net interest income on a fully tax equivalent basis plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions and severance, and the FDIC special assessment.

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, 2023, 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: macroeconomic and adverse developments and uncertainties related to the collateral effects of the collapse of, and challenges for, domestic and international banks, including the impacts to the U.S. and global economies; sustained levels of high inflation and the potential for an economic recession on the heels of aggressive quantitative tightening by the Federal Reserve; and impacts related to or resulting from instability in the Middle East and Russia’s military action in Ukraine, such as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. 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. As the company’s reach continues to grow, it also serves business clients nationwide and institutional clients in several countries. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn.

Consolidated Balance Sheets
(unaudited, dollars in thousands)
2023
ASSETS
Loans 24,197,462 $ 22,483,542
Allowance for credit losses on loans (239,167 ) (222,161 )
Net loans 23,958,295 22,261,381
Loans held for sale 4,211 3,819
Securities:
Available for sale 7,107,373 6,668,615
Held to maturity, net of allowance for credit losses 5,546,634 5,807,763
Trading securities 28,981 28,887
Other securities 447,650 428,149
Total securities 13,130,638 12,933,414
Federal funds sold and resell agreements 247,462 319,838
Interest-bearing due from banks 4,640,418 3,369,911
Cash and due from banks 464,719 431,527
Premises and equipment, net 226,860 255,127
Accrued income 237,874 190,387
Goodwill 207,385 207,385
Other intangibles, net 67,141 75,184
Other assets 1,284,411 1,195,069
Total assets 44,469,414 $ 41,243,042
LIABILITIES
Deposits:
Noninterest-bearing demand 12,034,606 $ 12,142,906
Interest-bearing demand and savings 22,400,255 18,184,063
Time deposits under 250,000 1,421,513 2,665,166
Time deposits of 250,000 or more 661,196 528,326
Total deposits 36,517,570 33,520,461
Federal funds purchased and repurchase agreements 2,217,033 2,050,583
Short-term debt 1,300,000 1,800,000
Long-term debt 384,245 382,280
Accrued expenses and taxes 352,778 256,845
Other liabilities 470,441 401,245
Total liabilities 41,242,067 38,411,414
SHAREHOLDERS' EQUITY
Common stock 55,057 55,057
Capital surplus 1,132,301 1,124,977
Retained earnings 2,984,152 2,681,448
Accumulated other comprehensive loss, net (605,634 ) (685,831 )
Treasury stock (338,529 ) (344,023 )
Total shareholders' equity 3,227,347 2,831,628
Total liabilities and shareholders' equity 44,469,414 $ 41,243,042

All values are in US Dollars.

Consolidated Statements of Income UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
INTEREST INCOME
Loans $ 400,351 $ 342,994 $ 785,917 $ 651,435
Securities:
Taxable interest 61,582 54,587 122,693 107,636
Tax-exempt interest 25,077 25,550 50,410 50,856
Total securities income 86,659 80,137 173,103 158,492
Federal funds and resell agreements 3,674 3,889 6,736 9,540
Interest-bearing due from banks 47,174 34,206 91,862 50,372
Trading securities 424 154 729 288
Total interest income 538,282 461,380 1,058,347 870,127
INTEREST EXPENSE
Deposits 240,525 170,550 464,400 298,449
Federal funds and repurchase agreements 28,081 24,745 55,743 48,047
Other 24,568 40,474 53,662 56,324
Total interest expense 293,174 235,769 573,805 402,820
Net interest income 245,108 225,611 484,542 467,307
Provision for credit losses 14,050 13,000 24,050 36,250
Net interest income after provision for credit losses 231,058 212,611 460,492 431,057
NONINTEREST INCOME
Trust and securities processing 70,010 61,589 139,488 123,948
Trading and investment banking 5,461 4,800 10,923 10,108
Service charges on deposit accounts 22,261 21,381 43,018 42,540
Insurance fees and commissions 267 225 550 499
Brokerage fees 14,020 13,604 27,180 27,280
Bankcard fees 22,346 18,579 44,314 36,751
Investment securities (losses) gains, net (1,867 ) 900 7,504 (4,424 )
Other 12,421 17,004 31,186 31,580
Total noninterest income 144,919 138,082 304,163 268,282
NONINTEREST EXPENSE
Salaries and employee benefits 142,861 143,312 285,867 285,810
Occupancy, net 11,723 11,746 23,993 23,923
Equipment 15,603 17,086 32,106 34,935
Supplies and services 3,404 4,195 6,705 8,070
Marketing and business development 6,598 7,124 12,623 12,459
Processing fees 29,701 26,572 57,637 49,812
Legal and consulting 16,566 7,059 24,460 14,344
Bankcard 11,818 8,307 22,385 15,440
Amortization of other intangible assets 1,911 2,117 3,871 4,415
Regulatory fees 2,568 6,123 21,963 11,674
Other 6,314 7,032 12,261 16,843
Total noninterest expense 249,067 240,673 503,871 477,725
Income before income taxes 126,910 110,020 260,784 221,614
Income tax expense 25,565 19,910 49,181 39,067
NET INCOME $ 101,345 $ 90,110 $ 211,603 $ 182,547
PER SHARE DATA
Net income – basic $ 2.08 $ 1.86 $ 4.34 $ 3.77
Net income – diluted 2.07 1.85 4.32 3.75
Dividends 0.39 0.38 0.78 0.76
Weighted average shares outstanding – basic 48,744,636 48,514,277 48,704,075 48,474,865
Weighted average shares outstanding – diluted 48,974,265 48,668,413 48,952,054 48,707,487
Consolidated Statements of Comprehensive Income UMB Financial Corporation
--- --- --- --- --- --- --- --- --- --- --- --- ---
(unaudited, dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Net income $ 101,345 $ 90,110 $ 211,603 $ 182,547
Other comprehensive (loss) income, before tax:
Unrealized gains and losses on debt securities:
Change in unrealized holding gains and losses, net (12,727 ) (87,505 ) (54,280 ) 6,152
Less: Reclassification adjustment for net (gains) losses included in net income — — (139 ) 433
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity 8,938 10,312 17,727 20,295
Change in unrealized gains and losses on debt securities (3,789 ) (77,193 ) (36,692 ) 26,880
Unrealized gains and losses on derivative hedges:
Change in unrealized gains and losses on derivative hedges, net (8,775 ) 1,848 (22,433 ) 321
Less: Reclassification adjustment for net gains included in net income (2,066 ) (2,660 ) (5,726 ) (5,221 )
Change in unrealized gains and losses on derivative hedges (10,841 ) (812 ) (28,159 ) (4,900 )
Other comprehensive (loss) income, before tax (14,630 ) (78,005 ) (64,851 ) 21,980
Income tax benefit (expense) 3,534 18,950 16,152 (5,076 )
Other comprehensive (loss) income (11,096 ) (59,055 ) (48,699 ) 16,904
Comprehensive income $ 90,249 $ 31,055 $ 162,904 $ 199,451
Consolidated Statements of Shareholders' Equity UMB Financial Corporation
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
(unaudited, dollars in thousands except per share data)
Capital<br>Surplus Retained<br>Earnings Accumulated Other Comprehensive (Loss) Income Treasury<br>Stock Total
Balance - January 1, 2023 55,057 $ 1,125,949 $ 2,536,086 $ (702,735 ) $ (347,264 ) $ 2,667,093
Total comprehensive income — — 182,547 16,904 — 199,451
Dividends (0.76 per share) — — (37,185 ) — — (37,185 )
Purchase of treasury stock — — — — (7,902 ) (7,902 )
Issuances of equity awards, net of forfeitures — (9,764 ) — — 10,483 719
Recognition of equity-based compensation — 8,455 — — — 8,455
Sale of treasury stock — 115 — — 140 255
Exercise of stock options — 222 — — 520 742
Balance - June 30, 2023 55,057 $ 1,124,977 $ 2,681,448 $ (685,831 ) $ (344,023 ) $ 2,831,628
Balance - January 1, 2024 55,057 $ 1,134,363 $ 2,810,824 $ (556,935 ) $ (342,890 ) $ 3,100,419
Total comprehensive income (loss) — — 211,603 (48,699 ) — 162,904
Dividends (0.78 per share) — — (38,275 ) — — (38,275 )
Purchase of treasury stock — — — — (7,537 ) (7,537 )
Issuances of equity awards, net of forfeitures — (10,964 ) — — 11,667 703
Recognition of equity-based compensation — 10,040 — — — 10,040
Sale of treasury stock — 125 — — 107 232
Exercise of stock options — 54 — — 124 178
Common stock issuance costs — (1,317 ) — — — (1,317 )
Balance - June 30, 2024 55,057 $ 1,132,301 $ 2,984,152 $ (605,634 ) $ (338,529 ) $ 3,227,347

All values are in US Dollars.

Average Balances / Yields and Rates UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
Three Months Ended June 30,
2024 2023
Average Average Average Average
Balance Yield/Rate Balance Yield/Rate
Assets
Loans, net of unearned interest $ 23,805,829 6.77 % $ 22,191,601 6.20 %
Securities:
Taxable 9,033,829 2.74 9,228,103 2.37
Tax-exempt 3,640,028 3.47 3,819,884 3.36
Total securities 12,673,857 2.95 13,047,987 2.66
Federal funds and resell agreements 246,132 6.00 276,459 5.64
Interest bearing due from banks 3,486,907 5.44 2,707,740 5.07
Trading securities 26,381 6.95 12,538 5.37
Total earning assets 40,239,106 5.44 38,236,325 4.91
Allowance for credit losses (228,369 ) (216,876 )
Other assets 2,465,492 2,345,714
Total assets $ 42,476,229 $ 40,365,163
Liabilities and Shareholders' Equity
Interest-bearing deposits $ 24,237,726 3.99 % $ 20,939,638 3.27 %
Federal funds and repurchase agreements 2,421,727 4.66 2,336,929 4.25
Borrowed funds 1,744,448 5.66 3,137,267 5.17
Total interest-bearing liabilities 28,403,901 4.15 26,413,834 3.58
Noninterest-bearing demand deposits 10,103,035 10,535,325
Other liabilities 767,687 539,172
Shareholders' equity 3,201,606 2,876,832
Total liabilities and shareholders' equity $ 42,476,229 $ 40,365,163
Net interest spread 1.29 % 1.33 %
Net interest margin 2.51 2.44
Average Balances / Yields and Rates UMB Financial Corporation
--- --- --- --- --- --- --- --- --- --- --- --- ---
(tax - equivalent basis)
(unaudited, dollars in thousands)
Six Months Ended June 30,
2024 2023
Average Average Average Average
Balance Yield/Rate Balance Yield/Rate
Assets
Loans, net of unearned interest $ 23,579,936 6.70 % $ 21,734,142 6.05 %
Securities:
Taxable 9,149,309 2.70 9,288,392 2.34
Tax-exempt 3,686,075 3.44 3,832,505 3.36
Total securities 12,835,384 2.91 13,120,897 2.64
Federal funds and resell agreements 226,288 5.99 363,341 5.29
Interest bearing due from banks 3,395,466 5.44 2,127,343 4.77
Trading securities 22,137 7.10 10,907 5.77
Total earning assets 40,059,211 5.38 37,356,630 4.77
Allowance for credit losses (225,243 ) (206,559 )
Other assets 2,411,681 2,292,479
Total assets $ 42,245,649 $ 39,442,550
Liabilities and Shareholders' Equity
Interest-bearing deposits $ 23,848,724 3.92 % $ 20,294,984 2.97 %
Federal funds and repurchase agreements 2,403,240 4.66 2,399,090 4.04
Borrowed funds 1,963,971 5.49 2,174,157 5.22
Total interest-bearing liabilities 28,215,935 4.09 24,868,231 3.27
Noninterest-bearing demand deposits 10,084,722 11,223,478
Other liabilities 772,430 549,787
Shareholders' equity 3,172,562 2,801,054
Total liabilities and shareholders' equity $ 42,245,649 $ 39,442,550
Net interest spread 1.29 % 1.50 %
Net interest margin 2.50 2.59
Business Segment Information UMB Financial Corporation
--- --- --- --- --- --- --- --- --- ---
(unaudited, dollars in thousands)
Three Months Ended June 30, 2024
Commercial Banking Institutional Banking Personal Banking Total
Net interest income $ 160,487 $ 51,502 $ 33,119 $ 245,108
Provision for credit losses 11,480 846 1,724 14,050
Noninterest income 27,720 95,092 22,107 144,919
Noninterest expense 85,780 95,531 67,756 249,067
Income (loss) before taxes 90,947 50,217 (14,254 ) 126,910
Income tax expense (benefit) 17,858 9,297 (1,590 ) 25,565
Net income (loss) $ 73,089 $ 40,920 $ (12,664 ) $ 101,345
Three Months Ended June 30, 2023
Commercial Banking Institutional Banking Personal Banking Total
Net interest income $ 144,389 $ 50,397 30,825 $ 225,611
Provision for credit losses 11,055 234 1,711 13,000
Noninterest income 25,666 86,813 25,603 138,082
Noninterest expense 85,896 91,591 63,186 240,673
Income (loss) before taxes 73,104 45,385 (8,469 ) 110,020
Income tax expense (benefit) 12,996 8,011 (1,097 ) 19,910
Net income (loss) $ 60,108 $ 37,374 $ (7,372 ) $ 90,110
Six Months Ended June 30, 2024
Commercial Banking Institutional Banking Personal Banking Total
Net interest income $ 317,734 $ 101,362 $ 65,446 $ 484,542
Provision for credit losses 19,000 1,325 3,725 24,050
Noninterest income 70,686 187,808 45,669 304,163
Noninterest expense 178,199 195,907 129,765 503,871
Income (loss) before taxes 191,221 91,938 (22,375 ) 260,784
Income tax expense (benefit) 35,153 16,828 (2,800 ) 49,181
Net income (loss) $ 156,068 $ 75,110 $ (19,575 ) $ 211,603
Six Months Ended June 30, 2023
Commercial Banking Institutional Banking Personal Banking Total
Net interest income $ 295,416 $ 105,482 $ 66,409 $ 467,307
Provision for credit losses 32,099 331 3,820 36,250
Noninterest income 48,568 171,051 48,663 268,282
Noninterest expense 169,900 180,962 126,863 477,725
Income (loss) before taxes 141,985 95,240 (15,611 ) 221,614
Income tax expense (benefit) 24,638 16,523 (2,094 ) 39,067
Net income (loss) $ 117,347 $ 78,717 $ (13,517 ) $ 182,547

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 June 30, 2024.

Non-GAAP Financial Measures

Net operating income Non-GAAP reconciliations: UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Net income (GAAP) $ 101,345 $ 90,110 $ 211,603 $ 182,547
Adjustments:
Acquisition expense 9,550 18 9,981 57
Severance expense 130 4,891 276 5,377
FDIC special assessment (3,800 ) — 9,200 —
Tax-impact of adjustments (i) (1,352 ) (1,178 ) (4,475 ) (1,304 )
Total Non-GAAP adjustments (net of tax) 4,528 3,731 14,982 4,130
Net operating income (Non-GAAP) $ 105,873 $ 93,841 $ 226,585 $ 186,677
Earnings per share - diluted (GAAP) $ 2.07 $ 1.85 $ 4.32 $ 3.75
Acquisition expense 0.19 — 0.20 —
Severance expense 0.01 0.10 0.01 0.11
FDIC special assessment (0.08 ) — 0.19 —
Tax-impact of adjustments (i) (0.03 ) (0.02 ) (0.09 ) (0.03 )
Operating earnings per share - diluted (Non-GAAP) $ 2.16 $ 1.93 $ 4.63 $ 3.83
GAAP
Return on average assets 0.96 % 0.90 % 1.01 % 0.93 %
Return on average equity 12.73 12.56 13.41 13.14
Non-GAAP
Operating return on average assets 1.00 % 0.93 % 1.08 % 0.95 %
Operating return on average equity 13.30 13.08 14.36 13.44

(i) Calculated using the company’s marginal tax rate of 23.0% for 2024 and 24.0% for 2023.

Operating noninterest expense and operating efficiency ratio Non-GAAP reconciliations: UMB Financial Corporation
(unaudited, dollars in thousands)
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Noninterest expense $ 249,067 $ 240,673 $ 503,871 $ 477,725
Adjustments to arrive at operating noninterest expense (pre-tax):
Acquisition expense 9,550 18 9,981 57
Severance expense 130 4,891 276 5,377
FDIC special assessment (3,800 ) — 9,200 —
Total Non-GAAP adjustments (pre-tax) 5,880 4,909 19,457 5,434
Operating noninterest expense (Non-GAAP) $ 243,187 $ 235,764 $ 484,414 $ 472,291
Noninterest expense $ 249,067 $ 240,673 $ 503,871 $ 477,725
Less: Amortization of other intangibles 1,911 2,117 3,871 4,415
Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A) $ 247,156 $ 238,556 $ 500,000 $ 473,310
Operating noninterest expense $ 243,187 $ 235,764 $ 484,414 $ 472,291
Less: Amortization of other intangibles 1,911 2,117 3,871 4,415
Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B) $ 241,276 $ 233,647 $ 480,543 $ 467,876
Net interest income $ 245,108 $ 225,611 $ 484,542 $ 467,307
Noninterest income 144,919 138,082 304,163 268,282
Less: Gains (losses) on sales of securities available for sale, net — — 139 (2 )
Total Non-GAAP Revenue (denominator A) $ 390,027 $ 363,693 $ 788,566 $ 735,591
Efficiency ratio (numerator A/denominator A) 63.37 % 65.59 % 63.41 % 64.34 %
Operating efficiency ratio (Non-GAAP) (numerator B/denominator A) 61.86 64.24 60.94 63.61
Operating pre-tax, pre-provision income non-GAAP reconciliations: UMB Financial Corporation
--- --- --- --- --- --- --- --- --- ---
(unaudited, dollars in thousands except per share data)
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Net interest income (GAAP) $ 245,108 $ 225,611 $ 484,542 $ 467,307
Noninterest income (GAAP) 144,919 138,082 304,163 268,282
Noninterest expense (GAAP) 249,067 240,673 503,871 477,725
Adjustments to arrive at operating noninterest expense:
Acquisition expense 9,550 18 9,981 57
Severance expense 130 4,891 276 5,377
FDIC special assessment (3,800 ) — 9,200 —
Total Non-GAAP adjustments 5,880 4,909 19,457 5,434
Operating noninterest expense (Non-GAAP) 243,187 235,764 484,414 472,291
Operating pre-tax, pre-provision income (Non-GAAP) $ 146,840 $ 127,929 $ 304,291 $ 263,298
Net interest income earnings per share - diluted (GAAP) $ 5.00 $ 4.64 $ 9.90 $ 9.60
Noninterest income (GAAP) 2.96 2.84 6.21 5.51
Noninterest expense (GAAP) 5.08 4.95 10.29 9.81
Acquisition expense 0.19 — 0.20 —
Severance expense 0.01 0.10 0.01 0.11
FDIC special assessment (0.08 ) — 0.19 —
Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP) $ 3.00 $ 2.63 $ 6.22 $ 5.41
Operating pre-tax, pre-provision income - FTE Non-GAAP reconciliations: UMB Financial Corporation
--- --- --- --- --- --- --- --- --- ---
(unaudited, dollars in thousands except per share data)
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Net interest income (GAAP) $ 245,108 $ 225,611 $ 484,542 $ 467,307
Adjustments to arrive at net interest income - FTE:
Tax equivalent interest 6,407 6,575 12,923 13,130
Net interest income - FTE (Non-GAAP) 251,515 232,186 497,465 480,437
Noninterest income (GAAP) 144,919 138,082 304,163 268,282
Noninterest expense (GAAP) 249,067 240,673 503,871 477,725
Adjustments to arrive at operating noninterest expense:
Acquisition expense 9,550 18 9,981 57
Severance expense 130 4,891 276 5,377
FDIC special assessment (3,800 ) — 9,200 —
Total Non-GAAP adjustments 5,880 4,909 19,457 5,434
Operating noninterest expense (Non-GAAP) 243,187 235,764 484,414 472,291
Operating pre-tax, pre-provision income - FTE (Non-GAAP) $ 153,247 $ 134,504 $ 317,214 $ 276,428
Net interest income earnings per share - diluted (GAAP) $ 5.00 $ 4.64 $ 9.90 $ 9.60
Tax equivalent interest 0.13 0.14 0.26 0.27
Net interest income - FTE (Non-GAAP) 5.13 4.78 10.16 9.87
Noninterest income (GAAP) 2.96 2.84 6.21 5.51
Noninterest expense (GAAP) 5.08 4.95 10.29 9.81
Acquisition expense 0.19 — 0.20 —
Severance expense 0.01 0.10 0.01 0.11
FDIC special assessment (0.08 ) — 0.19 —
Operating pre-tax, pre-provision income - FTE earnings per share - diluted (Non-GAAP) $ 3.13 $ 2.77 $ 6.48 $ 5.68
Tangible book value non-GAAP reconciliations: UMB Financial Corporation
--- --- --- --- ---
(unaudited, dollars in thousands except share and per share data)
As of June 30,
2024 2023
Total shareholders' equity (GAAP) $ 3,227,347 $ 2,831,628
Less: Intangible assets
Goodwill 207,385 207,385
Other intangibles, net 67,141 75,184
Total intangibles, net 274,526 282,569
Total tangible shareholders' equity (Non-GAAP) $ 2,952,821 $ 2,549,059
Total shares outstanding 48,745,090 48,517,750
Ratio of total shareholders' equity (book value) per share $ 66.21 $ 58.36
Ratio of total tangible shareholders' equity (tangible book value) per share (Non-GAAP) 60.58 52.54

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2nd Quarter 2024 Update July 30, 2024

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Presentation Index Corporate Overview Our Investment Thesis 2nd Quarter 2024 Results Line of Business Updates Appendix 3 10 19 35 46 Board of Directors Peer Group Non-GAAP Reconciliations Please refer to the Forward-Looking Statements on slides 48-51 for important disclosures about information contained in this presentation. Forward-Looking Statements Acquisition Update 7

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Corporate Overview Asset-based lending Healthcare Services National Presence International Presence UMBF Trust & Agency Services – Dublin, Ireland Specialized Lending Verticals Corporate Trust Capital Markets (4) Fund Services Private Wealth Management & Personal Trust At, or for the 3 months ended 06/30/24. (1) Includes $13.1B in managed assets & $2.8B in Assets Under Administration for Private Wealth customers; (2) Includes AUA in Fund Services/custody, corporate trust and Healthcare Services; (3) Operating ROTCE is a non-GAAP measure. See reconciliation on slide 57; (4) UMB Bank, n.a. Capital Markets Division. 89 banking centers 238 ATMs UMB Bank Presence & Expansion UMB Financial Corporation Headquarters Highlights

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Business Model Our Diverse Foundation Commercial & Personal Banking Services 2Q’24 Revenue: $243.4 million. 2Q’24 Average Deposits: $20.0 billion (1) Average loans: $3.2B (2) (3) Average deposits: $6.8B Retail deposit & lending services through 89 branches and online Private banking services Consumer mortgage AUM = $13.1B AUA = $2.8B Financial planning Investment management Wealth solutions Business succession and exit planning Trust & custody Estate planning Direct private equity investment access C&I lending Small business lending CRE & Construction lending Average loans: $20.0B (2) Average deposits: $13.2B Agribusiness Energy Practice finance Mezzanine debt & equity investments Commercial Consumer Private Wealth Institutional Banking Services 2Q’24 Revenue: $146.6 million. 2Q’24 Average Deposits: $13.6 billion (1) Institutional Banking provides solutions for the entire marketplace; $502.2 billion in AUA (4) Corporate Trust Bond trustee, paying agent & escrow services Institutional Custody Domestic & international custody services Fund Services Fund accounting, fund administration & transfer agency Alternative investment servicing Specialty Trust & Agency Solutions Default workout & successor trustee services Aviation, ABS & loan agency services Capital Markets Division (5) Fixed income sales & trading Public finance Asset / liability management services Investor Solutions Banking, cash management & specialty services for financial firms Healthcare Services Health savings & benefit spending accounts Healthcare payment solutions Aviation Asset-based lending Beverage Treasury management Merchant payments Specialized Expertise: Balances at, or for quarter ended, 06/30/24 (1) Excludes brokered CDs issued by Corp. Treasury; (2) Excludes credit card; (3) Includes consumer plus residential real estate loans; (4) Includes AUA in Fund Services/custody, corporate trust & Healthcare Services; (5) Products offered through UMB Bank Capital Markets Division: NOT FDIC INSURED | MAY LOSE VALUE  | NOT BANK GUARANTEED.

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Beyond Financials Our Culture Our Values Our Commitment Our Vision the unparalleled customer experience Customers First We do the unparalleled to create an environment that consistently exceeds the expectations of our customers. Integrity & Trust We demonstrate our uncompromising honesty and integrity to earn the trust of everyone we serve. Performance & Strength We achieve sustainable greatness by delivering on our promise, remaining independent and maintaining financial soundness. Associate Spirit We rely upon our people and their collective attitude and skills to differentiate us from our competitors. Inclusion & Diversity We believe an inclusive and diverse culture energizes the workplace and ignites innovation. Creating an unparalleled customer experience requires a culture where our people feel part of something more, something bigger. We foster this experience through our policies, our business decisions and our expectations of each associate. the unparalleled customer experience An unwavering commitment to doing more for our customers. Whether it’s having a heart for each other, our customers or our communities, we support work through inclusive policies and empowering people to create fulfilling lives in and out of the workplace. MORE HEART Our goal is to grow existing strengths and build new skills. We’re committed to empowering our workforce to make an impact and achieve their goals through open conversations and providing the tools to develop potential. MORE OPPORTUNITY MORE TRUST Our associates have confidence they will be encouraged and expected to do the right thing at all times — no matter what. We’re focused on setting clear expectations and a leadership team who is accessible and transparent.

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Beyond Financials Our Commitment to Corporate Citizenship Read our 2023 Corporate Citizenship Report at UMB.com/ESGreport UMB recognizes the undeniable importance of sustainable business practices. Efficient & Sensible Resource Use Associate volunteerism and corporate philanthropy help build strong community partnerships. $6.8 million in company donations and sponsorships in 2023, supporting housing needs, small business, education and emerging talent UMB provided more than $8.3 million in grants and closing costs to first-time homebuyers across the bank’s footprint We delivered more than 344 community engagement activities and held 127 financial education classes, serving more than 1,400 community participants More than 1,000 associates participated in our matching gift program; combined with workplace giving, associated giving totaled nearly $650k Associates receive 16 hours of paid Volunteer Time Off annually. 697 participants logged nearly 7,700 hours of volunteer time in 2023, supporting 303 unique charities Community Impact All UMB-owned buildings and 4 leased locations use automated systems to conserve energy, meeting our goal to have all converted by year-end 2023. Additionally, exterior lighting upgrades saved 920k Kilowatt hours during the year More than 172k Kilowatt hours generated from solar panels 2023 recycling efforts produced more than 17k pounds of comingled recycling, 7k pounds of cardboard and 443 pounds of recycled batteries Beehives housed at a Denver branch support the local honeybee population, with a peak of 270k resident bees. Since installation, we’ve harvested 330 pounds of edible honey Effective governance practices preserve the confidence and trust of our stakeholders. 11-person board of directors, with 10 independent members, a lead independent director, and 100% independence on board committees 36% board diversity Deliberate selection criteria which includes diversity standards in the board nomination process Robust risk oversight with distinct risk management committees: enterprise risk, asset and liability, and credit Board oversight of the executive ESG Committee Strong Corporate Governance We want our company to be as diverse as the world we live in. As an early CEO Action for Diversity and Inclusion signatory, we regularly review progress of our inclusion strategy with executives and our board of directors Eight Business Resource Groups (BRGs) help us understand the needs of our associates, customers and communities and turn empathy into action In 2023, 36% of all UMB hires were people of color, 54% were women and 3% were veterans Diversity among executive leadership team – 50%; 7 of 14 members Inclusion & Diversity

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Acquisition Update

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HTLF Acquisition – Strategically Compelling Creating a ~$65B Asset Regional Champion Increases density in existing markets Expands into attractive new geographies Top 10 deposit market share ranking in 5 states (3) UMB: 89 Heartland: 107 Pro Forma: 196 Builds Presence in Midwest & Southwest Pro Forma Snapshot (1) (1) Pro Forma metrics based on March 31,2024 data. These are subject to assumptions and uncertainties. See additional information on slide 50; (2) Market cap based on stock price as of 04/26/24; (3) Deposit data generated from S&P Capital IQ based on the FDIC Summary of Deposits data study as of 06/30/23; (4) UMB’s branch locations in Illinois are part of St. Louis MSA. Additional HTLF States Shared States Market Pro Forma Deposits (1)

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Acquisition Update Expected Timeline Progress Submitted regulatory applications and filed S-4 / proxy statement Management participated in site visits and townhall meetings with stakeholders in all HTLF regions Established an integration program governance structure, working with EY, to lead planning and execution Functional teams within both UMBF and HTLF Focus on organizational alignment; security and oversight support; financial reconciliation Integration/Conversion team Focus on product and system mapping and conversion; customer segmentation Director candidate vetting continues for the five prospective UMBF board seats to be held by HTLF directors Both UMBF and HTLF completing cultural fitness diagnostic exercise Active discussions regarding community benefits 2024 2025 2Q’24 3Q’24 4Q’24 1Q’25 2Q’25 4Q’25 3Q’25 April 29 Announcement June 13 Regulatory application filed July 2 Preliminary S-4 filed August 6 Shareholder meeting INTEGRATION PLANNING & DEVELOPMENT Target Closing (1) Target System & Brand Conversion (1) Subject to shareholder and customary regulatory approvals. June Launched integration programs

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Our Investment Thesis

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Investment Thesis Opportunity in Our Diverse Business Model Track record of strong loan growth – opportunities remain Underpenetrated across our geographic footprint, focused on market share gains Underpenetrated vertically on an asset class basis; built out specialized teams Runway for Growth Diverse deposit base across multiple lines of business, customer segments and geographies No one commercial sector represents more than 4% of total deposits Long-tenured relationships: 52% of our deposit accounts have been with us for more than 10 years and account for ~31% of deposit balances (1) Flexible balance sheet well-positioned for changing interest rate environments Above peer earning asset growth Lower loan-to-deposit ratio provides flexibility 29% of average deposit balances in DDA Focus on returning value to shareholders; risk-adjusted returns EPS and tangible book value growth outpace peers over the long-term Consistent dividend growth Differentiated revenue profile and growing fee income Revenue from diverse lines of business and verticals provide a natural hedge in a variety of rate environments Lower-than-peer reliance on mortgage and NSF/OD revenue Solid capital levels and ample liquidity sources Strong regulatory capital ratios Access to multiple contingent funding sources Time-tested underwriting philosophy Unwavering credit standards Long-tenured credit team – average of 23 years with UMB Chief Credit Officer – 38 years with UMB Variable asset base > $1.4 billion of securities cash flow expected within 12 months (2) (1) Average collected balances for June 2024; excludes CDs, health savings and FinTech deposits; (2) Excludes $500 million of collateral-related Agency Discount Notes, see page 31.

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Differentiated Revenue Profile Multiple Sources of Growth Net Interest Income Fee Income Provides Diversity 30% 53% 37% $ 1,282.7 $1,291.4 $1,468.0 $613.2 $1,462.0 $731.3 $587.8 $778.2 $671.0 $825.1 $878.5 $982.5 $848.7 $1,012.1 $971.4 $1,097.7 Total Revenue 15 Year CAGR 6.3% Revenue Growth Annual NII Growth Annual Revenue Growth 12% 12% 18% 10% 3% 2% 1% 9% 4% 5% 18% 20% 13% 9% 10% -1% 14% -0.4% 13% 4% 9% 9% 6% 18% 6% 3% 4% 11% 1% 3% 8% Dollars in millions. (1) Noninterest income prior to 2017 contains income from discontinued operations; (2) 2022 noninterest income included a $66.2 million pre-tax gain on the sale of Visa Inc. Class B shares; (3) UMB peers (15 banks) as of latest available annual period. Source: S&P Capital IQ. Net Interest Income (before provision) Noninterest Income (1) (2) % fee income Peer Median % Fee Income (3) 15 Year CAGR 8.4% 15 Year CAGR 3.7% Fee Income Growth $815.5 $731.2 $913.8 $303.0 $920.1 $317.0 $275.1 $320.1 $310.6 $333.3 $412.1 $558.9 $350.1 $610.4 $495.3 $670.9 1% 20%

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7% 8% Balance Sheet Growth Across All Business Cycles Average Deposits Average Deposits Average Total Deposit Cost Peer Median Deposit Cost (1) 2.01% 1.37% 2.22% 25% 1% 14% 16% 11% 14% 10% 20% 13% 6% 11% 9% 4% 7% 14% 15 Year CAGR 11.1% Average annual balance in billions. (1) UMB peers (15 banks), as of latest available annual period. Source: S&P Capital IQ; (2) Loan balances exclude PPP loans for ’20 – ’22. Annual Deposit Growth 15 Year CAGR 11.8% Average Loans (2) Annual Loan Growth 12% 19% 19% 5% 2% 6% 10% 10% 18% 12% 21% 19% 9% 7% 10% 1.51%

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Resilient Credit Metrics Through All Economic Environments Net Charge-Offs / Average Loans Nonperforming Loans / Loans Industry (2) UMBF Peer Median (1) Industry (2) UMBF Peer Median (1) (1) UMB peers (15 banks), as of latest available annual period. Source: S&P Capital IQ; (2) All FDIC-insured banks, as of last available annual period. Source: FDIC. 0.05% 15 Year Average 0.29% 15 Year Average 0.44% 0.18% 0.52% 0.06% 0.33% 0.86%

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Capital & Liquidity Supports Growth Outlook Cash & Securities / Assets (3) Average Loans / Average Deposits Tier 1 Capital Ratio Equity / Assets UMBF Peer Median (1) UMBF Peer Median (1) Peer Median TCE / Tang. Assets (1) (2) UMBF Peer Median (1) (1) UMB peers (15 banks), as of latest available annual period. Source: S&P Capital IQ; Peer group defined on slide 47; (2) Tangible equity and tangible assets are non-GAAP measures. See reconciliation on slide 56; (3) As defined by S&P Capital IQ: “Cash, cash equiv. & investment securities/assets.” Tangible Equity / Tangible Assets (2) UMBF Equity / Assets UMBF TCE / Tang. Assets (2)

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Risk-Adjusted Returns Rowing Close to Shore UMBF Peer Median (1) (1) UMB peers (15 banks), data as of latest available annual period. Source: S&P Capital IQ. (2) The numerator for the calculation of Return on Risk-Weighted Assets is GAAP net income, which in 2023 included $52.8 million of pre-tax expense for the FDIC special assessment, recognized in 4Q’23. UMBF Peer Median (1) Risk-Weighted Assets / Assets Return on Risk-Weighted Assets (2)

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Dividend Trends Sustained Growth (1) Dividends adjusted for 2-for-1 stock split in 2006. (2) Annualized 2024 full-year dividend assumes all 4 quarterly dividends are declared at $0.39/share, consistent with 1Q & 2Q 2024 dividends. The Board of Directors may declare dividends of different amounts in future quarters. Annual Dividends Declared (1) 2024 = $1.56 +2.0% vs. 2023 (2) +280.5% 2004 - 2024 (2)

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Outperformance Building Long-Term Value 15-Year Compounded Annual Growth Rates 2008 – 2023 UMBF KRX* Industry*** Peer Median** Diluted Earnings Per Share Tangible Book Value Per Share (2) *KBW Nasdaq Regional Bank Index (median of 50 banks); **UMB’s traditional peers (median of 15 banks); ***Median of all publicly-traded banks with data reported for both 2008 and 2023. (1) ‘23 diluted EPS includes FDIC Special Assessment, as applicable; (2) Tangible book value per share is a non-GAAP measure. See reconciliation on slide 53. Peer, KRX & Industry source: S&P Capital IQ. (1)

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2nd Quarter 2024 Financial Review

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(1) Net gains/losses on any disposition or impairment of debt securities + mark-to-market valuations of equity investments; (2) Operating noninterest expense and operating PTPP income & EPS are non-GAAP measures. See reconciliation on slide 55; (3) Net operating income & operating EPS are non-GAAP measures. See reconciliation on slide 54. 2Q 2024 Results At-A-Glance $ millions, except per share amounts. 2Q ’23 1Q ’24 2Q ’24 Linked-Quarter Variance & Commentary

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2Q 2024 Earnings Highlights Operating PTPP Income (2) $126.6 $134.9 $157.5 $146.8 $127.9 Net Income & Net Operating Income (1) Operating PTPP Income – gains/losses on inv. securities (3) Operating PTPP Income, ex. gains/losses on inv. securities Dollars in millions, except per share amounts. (1) Net operating income and operating EPS are non-GAAP measures. See reconciliation on slide 54; (2) Operating PTPP income is a non-GAAP measure. See reconciliation on slide 55; (3) Net gains/losses on any disposition or impairment of debt securities plus mark-to-market valuations of equity investments. EPS Net Income Operating EPS (1) Net Operating Income (1) $93.8 $98.4 $112.0 $120.7 $105.9

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Revenue Trends Dollars in millions. Columns may not sum due to rounding differences. 2Q ’23 3Q ’23 4Q ’23 1Q ’24 2Q ’24 Linked-Qtr. Variance $ ∆ % ∆

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Net Interest Income $1.8B $2.6B $3.5B $3.7B $3.0B Asset Yield and Liability Cost Trends Liquidity Trends NIM Spread Net Interest Income $222.3 $239.4 $245.1 9.3% 7.8% 5.0% 6.8% 8.8% $230.5 8.4% Fed funds & resell agreements Int-bearing due from banks % of average earning assets Liquidity trends shown as average quarterly balances. $ millions $ billions EA % IBL % COF % $225.6 Pre- pandemic $2.1B

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Noninterest Income Current Quarter Drivers Fee Income / Revenue Peer Median Fee Income / Revenue (1) Dollars in millions. (1) UMB peers (15 banks), data as of latest available quarter. Source: S&P Capital IQ. Investment Securities Gains (Losses) Brokerage Fees Trust / Securities Processing Bankcard Fees Trading / Invest. Banking Other Income Deposit Svc. Charges. $133.3 $140.3 $159.2 $144.9 $138.1 LQ Variance Noninterest income decreased $14.3mm or 9.0%, vs. 1Q’24. Primary drivers:   A decrease of $11.2mm in investment securities gains, driven by an $8.6mm net gain recorded in the prior quarter and a $2.6mm reduction in the value of a non-marketable security in 2Q’24. A reduction in miscellaneous income compared to higher 1Q’24 levels, which included a $4.0mm legal settlement and a $1.8mm gain on the sale of land. Partial offsets include a $1.6mm increase in derivative income and a $1.5mm increase in deposit service charges, primarily related to healthcare transfer and conversion fees. COLI income was $852k in 2Q’24, compared to $3.7mm in 1Q’24, and $3.1mm in 2Q’23. This income variance is offset by a proportionate change in deferred compensation expense. Composition / Changes in Inv. Securities Gains (Losses) and Trust & Securities Processing

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Noninterest Expense Current Quarter Drivers (1) Columns may not sum due to rounding differences. (2) Operating noninterest expense is a non-GAAP metric. See reconciliation on slide 55. Noninterest expense decreased $5.7mm or 2.3%, vs. 1Q’24 on a GAAP basis. On an operating basis, which excludes FDIC special assessments and expenses related to acquisitions and severance, noninterest expense increased $2.0mm, or 0.8%. (2) Primary drivers of the linked-quarter variance in operating noninterest expense include:    An increase of $1.8mm in processing fees related to higher software subscription costs and the timing of various projects. An increase of $1.3mm in bankcard expense driven by higher administrative costs, including the impact of the new co-brand card portfolio. Deferred compensation expense was $1.2mm in 2Q’24, $4.0mm in 1Q’24, and $3.2mm in 2Q’23. Variances are offset by a proportionate change in COLI income. 2Q ’23 3Q ’23 4Q ’23 1Q ’24 2Q ’24 $ ∆ % ∆ $ in millions Linked-Qtr. Variance (2) Excludes acquisition expense, FDIC special assessments and other expenses as noted on slide 55.

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$23,806 $ 22,192 $ 22,751 $ 23,109 Diversified Loan Portfolio Average balances in millions. Average Loan Yield Commercial R/E Asset-Based Lending C&I Residential R/E Consumer Construction Credit Card $ 23,354 Kansas City 32% Colorado 18% Arizona 9% St. Louis 17% Greater MO 5% KS - 2% Texas 11% NE - 1% OK - 1% Utah - 4% 2Q ’23 1Q ’24 2Q ’24 Linked-Qtr. Variance $ ∆ % ∆ Loans by Region

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Quarterly Loan Activity Dollars in millions. (1) Payoffs and paydowns include C&I and CRE loans. (1) (1) 2Q ’23 3Q ’23 4Q ’23 1Q ’24 2Q ’24

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(0.00%) Strong Asset Quality Nonperforming Loans NPLs / Total Loans Net Loan Charge-Offs (Recoveries) Delinquencies Delinquencies (1) Delinquencies / Total Loans Allowance for Credit Losses on Loans ACL / Total Loans Nonperforming Loans Allowance for Credit Losses Dollars in millions. (1) Delinquencies represent accruing loans > 30 days past due. Net Charge-offs (Recoveries) NCOs / Average Loans ($0.01)

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Detailed Net Charge-Off History Recent Quarterly Trends Historical Historical

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High-Quality Investment Portfolio $6,537 $6,408 $6,865 $6,651 $5,766 $5,705 $5,653 $5,575 $5,824 Average balances - $ millions Average Blended Yield Treasuries Corp. & Commercial Paper GNMA/GSE Mortgage-Backed GSE Agencies General Obligation Municipals Revenue Bonds Collateralized Loan Obligations $6,816 Available-for-Sale (1) Held-to-Maturity (1) (1) Balances are presented at carrying value, which is fair value for the available-for-sale portfolio and amortized cost for the held-to-maturity portfolio. Average balances - $ millions

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Securities Portfolio Statistics Amortized Cost Fair Value Net Unrealized Loss (5) Securities Portfolio Activity (1) $ in millions $ in millions; as of 06/30/24 Additional 2Q’24 Activity 2Q’24 roll-off totals exclude $400 million of T-Bills previously purchased for collateral needs. 2Q’24 purchased totals exclude $3.3 billion of T-Bills and Agency Discount Notes @ 5.31% purchased for collateral needs. Next quarter and next 12-month roll-off totals exclude $500 million of collateral-related Agency Discount Notes. (1) Purchase activity, cash flow and duration includes AFS securities and HTM portfolio exclusive of industrial revenue bonds held-to-maturity; (2) Purchases made for roll-off and overbuy, net of purchases related to sales/trades and short-term collateral needs within the quarter; (3) 4Q’23 purchased, purchased yield, expected cash flows and cash flow yields exclude impact of $500mm T-Bills purchased for collateral purposes; (4) 1Q’24 roll-off excludes the $500mm of those T-Bills noted in footnote 3; (5) 2Q’24 purchased, purchased yield, expected cash flows and cash flow yields exclude impact of collateral-related short-term securities as noted above; (6) Columns & rows may not sum due to rounding differences.

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Deposits by Line of Business Diversified Deposit Mix $31,330 $33,526 $34,341 $31,475 Commercial Personal Institutional Commercial Banking 38% Consumer & Private Wealth 20% Capital Markets & Corp. Trust 13% Healthcare Services 9% Fund Services 9% Investor Solutions 9% 32% 321 30% 29% 33% Average balances in millions. $32,675 Interest-Bearing Demand & Savings Demand Deposits Time Deposits Avg. Total Deposit Cost DDA / total deposits 2% 2Q ’23 1Q ’24 2Q ’24 Linked-Qtr. Variance $ ∆ % ∆ Brokered

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Interest Rate Sensitivity Impact to Net Interest Income Assumptions Projected rates for new loans and deposits based on historical analysis, management outlook and repricing strategies Asset prepayments and other market risks are developed from industry estimates of prepayment speeds and other market changes Ramp Scenario 66% of total end-of-period loans, or $16.0B, are variable. 69% of total loans reprice within the next 12 months. Of variable loans - % tied to indices for next 12 months: 69% - SOFR 27% - Prime 4% - other Loan Maturities & Repricing Year 2 Year 1 - 300 - 200 - 100 + 100 Increase / decrease based on hypothetical rate changes and stable balance sheet Shock Scenario Year 2 Year 1

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Strong Capital Available Liquidity Sources Capital & Liquidity Position $ millions 5.27% 5.21% Weighted average rate Bank Term Funding Program FHLB Advances Brokered CDs As of June 30, 2024 $ billions Wholesale Funding by Maturity UMBF ratio Regulatory Minimum CET 1 Total Capital Tier 1 Leverage Regulatory Capital Ratios 13.08% 11.14% 8.50% Tangible Common Equity Ratio (1) 6.68% Total Equity / Total Assets 7.26% 6.50% 10.00% 5.00% (1) Tangible common equity is a non-GAAP measure. See reconciliation on slide 56. 4.76% $800 $500 $500

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Line of Business Updates

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Commercial Banking Commercial Capabilities Investment Real Estate Office Industrial Hotel Retail Multi-family Student Housing Agribusiness Asset-based Lending Aviation Lending Lending Verticals Beverage Lending Energy Lending C&I Lending Owner-Occupied CRE Middle Market Working capital lines Equipment loans Business Banking Practice Finance Small Business Banking Small / Medium Business Middle Market 53% Investment Real Estate 33% Sm./Med Biz 4% Specialized Verticals 10% $20.0B Average balance for 2Q’24, excludes credit card. (1) Rank among U.S. Visa & Mastercard Commercial Card Issuers, Source: Nilson Report, ‘23; (2) “Production ag lending” per ABA 4Q 2023, FDIC data. Additionally, UMB has significant relationships with “Agribusiness / Middle Market Ag” companies. #30 of 100 Largest Farm Lenders in the U.S. (2) Commercial Credit Card Purchase Volume (1) TOP 15 Prepaid & Purchasing Card Volume (1) TOP 5 Commercial Lending Portfolio Average Loan Balance & Composition

Slide 37

Commercial Banking C&I Lending Commercial & Industrial Statistics C&I Industries as % of Total UMB Loans (1) Includes Middle Market, Lending Verticals & Small / Medium Business Considerations Internal limits on loan size and projects per sponsor Concentration guidelines for all lending verticals, monitored for changing conditions End-of-Period C&I Balance Trends Transp. / Warehouse Diversified Tech. & Telecom Materials & Commodities Manu-facturing Retail Healthcare Commercial Services Other (2) Agri-business Finance & Insurance 10% Energy-Related 4% Total Commercial & Industrial Loans $10.5B 43.3% of total UMB loans Average Line Utilization Trends (2) Other - 4% of total UMB loans Food & Beverage Auto-related Entertainment / Recreation Apparel / Textiles Consumer Services Government / Education Portfolio Mgmt.–4% Inv. Banking–2% Leasing–1% Other Financial-3% RE & Construction 5% Comml. Lessors–1% Building Const.–1% Varied Const. Services– 3% Petroleum–2% Nat. Gas–1% Other Energy–1% +3% YoY $ billions (1) End-of-period balances as of June 30, 2024.

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Commercial Banking Commercial Real Estate Commercial Real Estate Statistics Investment CRE as % of Total UMB Loans (1) Const. / Land Dev. 11% Owner-Occupied 9% Investment CRE 17% $9.5B Farmland 2% as of June 30, 2024 1-4 Unit Residential Construction < 1% of total UMB loans Retail Multifamily Office Hotel Industrial Sr. Living 1-4 Unit Rentals Vacant Land Other (5) (1) End-of-period balances as of June 30, 2024; (2) Adjusting for customer interest rate swaps on variable rate loans, “fixed” rate exposure would be ~51% and variable rate exposure would be ~49%; (3) Swap adjusted: “fixed” rate exposure ~45% and variable rate exposure ~55%; (4) Tier 1 capital plus an adjusted ACL, per regulatory guidelines. (5) Other - 2% of Total UMB loans Mixed Use Student Housing Homebuilder for Sale Healthcare Special Purpose Self-storage Investment CRE & Construction Portfolio Average Loan-to-Value: 57% Recourse: 91% Investment CRE Rate Type: (3) Fixed – 29% Variable – 71% Total CRE & Construction = 39% of UMB loans Owner-occupied – new purchase or refinance Real estate development – construction / perm financing, bridge financing, renovations Total UMB Commercial R/E Rate Type: (2) Fixed – 38% Variable – 62% Regulatory Concentrations (4) Total non-farmland CRE / Total RBC: 189% Construction & Development / Total RBC: 73% Total Inv. CRE & Construction Loans $6.7B 27.7% of total UMB loans

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Investment Real Estate Select Property Details Average Loan: $9.2mm Average LTV: 63% Recourse: 84% Geographic Diversity – By Property Location By outstanding balances as of June 30, 2024 Average Loan-to-Value, Select Asset Classes Total Investment CRE Portfolio Office CRE Portfolio MSA Diversification Statistics Market Type $1,015 mm Suburban Central Business District Medical $ millions Industrial: 61% Multifamily: 55% Retail: 56% Hotel: 50% Vacant Land: 51% Senior Living: 63% 1-4 Unit Rentals: 52% (No state > 3.1%)

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Personal Banking Consumer Metrics at, or for the quarter ended, 06/30/24. (1) Includes residential real estate and other consumer loans; (2) 2Q’24 Q2 Net Promoter Score for 54 financial services companies - Medallia, Inc. Strategic & Stable Source of Low-Cost Funds +6.2% YoY $3.2B Total Average Loans (1) Consumer plays a strategic role for UMB as a large and stable source of deposits. Poised for continued asset growth Growth engine for new customers; deepening existing relationships NPS Score 73.5 UMBF Industry Average (2) 53.1 Private Banking Strategically positioned for sales growth Retail Banking Hybrid Service & Sales Model – Provides broad products and services to meet diverse client needs Mortgage 1st Time Homebuyer Program Down Payment Assistance to Qualified Buyers 4,300+ Applications Assistance $ High Customer Satisfaction Consumer serves the personal banking needs of clients across all divisions of the bank $2.6B Provide competitive mortgage solutions for all client types 89 Banking Centers 238 ATMs Digital Capabilities across Consumer 27 $2.3B Private Bankers Across 9 regions Avg. Private Banking Deposits Average Mortgage Balances +5.6% YoY Digital loan and deposit application and originations Mobile Banking: Deposits, transfers, bill pay, acct review & more $6.5mm +10.2% YoY $6.8B Total Average Deposits Program to Date (1Q ‘22– 2Q ‘24)

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Personal Banking Private Wealth Management Composition as of June 30, 2024. (1) Includes Assets Under Management and Assets Under Administration. Personal Trust 23% Investment Advisory 44% Non-Managed AUA 18% IRAs 6% Brokerage 4% Other 5% Customer Assets Wealth Management Financial planning Discretionary investment management Strategic wealth solutions for ultra-high net worth families Business succession and exit planning Brokerage services   Personal Trust & Custody Trust administration Charitable foundation planning and administration Personal custody services Unique asset administration Fine art management Trust tax preparation   Asset Management Direct private equity investment access $13.1B Managed Assets (AUM) $2.8B Non-Managed Assets (AUA) New Assets / Sales (1) $ millions

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Institutional Banking Fund Services & Institutional Custody $411B $460B $383B $400B Provides services for 1,700 funds, including registered and alternative investment funds, PE funds, real estate and venture capital funds and ETFs and more. One of the nation's leading providers of domestic and global custody, serving insurance companies, public & private corporations, nonprofits, municipalities, fund companies and endowments. Established in 1948. Best Custodian (6) (7) Net New Accounts YTD Custody AUA +23% YoY +439 $443B Assets Under Administration Registered Funds & Alternative Investments Institutional Custody Transfer Agency Alternative Servicing Fund Acct/Admin. Custody Note: Asset categories sum > total AUA due to shared client assets. (1) With Intelligence ’19, ’20, ‘22 & ‘23 Awards; (2) Hedgeweek US Emerging Managers Awards ’23; (3) Hedgeweek US Emerging Managers Awards ’24; (4) Global Custodian Industry Leaders Editor’s Choice ’23; (5) PE Wire ’23; (6) HFM Services Awards ’21 & ’22; (7) Hedgeweek US Awards '23. Best Interval Fund Administrator (1) Best Fund accounting and reporting software (2) Best Administrator – Mid Market & Emerging Managers (5)   Best New Fund Services Project – RFS (4)   Administrator of the Year – Technology (3)

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Institutional Banking Corp./Specialty Trust & Capital Markets (1)Thomson Reuters municipal rankings, March ‘24; (2) Ranked by number of issues. Corporate Trust & Escrow Services Provides trustee, paying agent and escrow services to municipal and corporate issuers. $41B Assets Under Administration Paying Agent in U.S. (1) (2) #2 Municipal Trustee in U.S. (1) (2) #6 Specialty Trust & Agency Solutions Services for asset-backed securitizations, aviation and other transportation and real estate projects. Workout and successor trustee services on behalf of bondholders of defaulted transactions. +35% Examples of recent deals: Products and services offered through UMB Bank Capital Markets Division NOT FDIC INSURED | MAY LOSE VALUE  | NOT BANK GUARANTEED. Capital Markets Division Capital solutions including fixed income sales, trading and underwriting for institutional, municipal and not-for-profit organizations. Public Finance Growth in new business YTD vs. 2Q ’23 June YTD Closed Deals

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FDIC Sweep Assets Under Administration $49B Institutional Banking Investor Solutions & Healthcare Services Investor Solutions Annual ACH Transactions Healthcare Services Provides a suite of tax-advantaged benefit accounts including Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), and Commuter Benefit Accounts.  HSA Account Holders 1.5mm In HSA Assets & Deposits $4.2B Top 10 HSA Custodians in the U.S. (2) TOP 10 Benefit Cards 5.1mm ~84mm ~ 5.4 mm accounts Recognized for Investment Quality (1) Sample BaaS Partnerships Named a Top HSA for Features & Investment Options (1) (1) Investor’s Business Daily ‘23; (2) #6 in total accounts & #8 in total assets as of December 31, 2023 - Devenir Research Year-end ‘23. Our banking as a service (BaaS) solution includes deposit services for checking, saving, and investment accounts, including expanded FDIC insurance through our proprietary Sweep Program.

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Payments Credit & Debit Card Products Dollars in millions. (1) Rank in commercial, consumer and small business cards among top 50 U.S. issuers. Source: Nilson Report, December 2023. Card Purchase Volume & Interchange Trends 26th in U.S. Credit Card Purchase Volume (1) #26 $4,009 $4,558 $4,701 $4,020 $4,088 Interchange Income Consumer Credit Healthcare Debit Commercial Credit Inst. Cash Mgmt. Consumer Debit +16.9% YoY 2Q ’24 Card Spend $4.7B

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Appendix

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Governance Our Board of Directors AC = Audit Committee; CC = Compensation Committee; GC = Governance Committee; RC = Risk Committee Tim Murphy AC, CC Janine Davidson CC, GC Tammy Peterman GC, RC K.C. Gallagher AC, RC Kris Robbins AC, RC (Chair) Greg Graves Lead Independent Director, GC (Chair) Josh Sosland GC, RC Mariner Kemper Chairman of the Board Leroy Williams CC, RC Robin Beery CC (Chair), RC Gordon Lansford AC (Chair), CC Advisory Directors Tom Wood Jim Rine Vice Chairman & President

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Forward-Looking Statements This presentation 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 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 annual, quarterly and 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: macroeconomic and adverse developments and uncertainties related to the collateral effects of the collapse of, and challenges for, domestic and international banks, including the impacts to the U.S. and global economies; sustained levels of high inflation and the potential for an economic recession on the heels of aggressive quantitative tightening by the Federal Reserve, decreases in demand for office space caused by shifts in the work environment, and impacts related to or resulting from instability in the Middle East and Russia’s military action in Ukraine, such as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. 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 disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent documents that are filed or furnished with the SEC. Any statements about UMB Financial Corporation’s (“UMB”), Heartland Financial USA, Inc.’s (“Heartland” or “HTLF”) or the combined company’s plans, objectives, expectations, strategies, beliefs, or future performance or events constitute forward-looking statements. Such statements are generally identified as those that include words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “objective,” or similar expressions or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “may,” or similar expressions. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates, and other important factors that change over time and could cause actual results to differ materially from any results, performance, or events expressed or implied by such forward-looking statements. Such forward-looking statements include but are not limited to statements about the benefits of the business combination transaction between UMB and HTLF (the “Transaction”), including future financial and operating results, the combined company’s plans, objectives, expectations and intentions, and other statements that are not historical facts.

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Forward-Looking Statements In addition to factors previously disclosed in UMB’s and HTLF’s reports filed with the SEC, the following factors could cause actual results to differ materially from forward-looking statements or historical performance: The occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement; the outcome of any legal proceedings that may be instituted against UMB or HTLF; the possibility that the Transaction does not close when expected or at all because required regulatory, shareholder, or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Transaction); the risk that the benefits from the Transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which UMB and HTLF operate; the ability to promptly and effectively integrate the businesses of UMB and HTLF; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of UMB’s or HTLF’s customers, employees or other business partners, including those resulting from the announcement or completion of the Transaction; the dilution caused by UMB’s issuance of additional shares of its capital stock in connection with the Transaction; and the diversion of management’s attention and time from ongoing business operations and opportunities on merger-related matters. These factors are not necessarily all of the factors that could cause UMB’s, HTLF’s or the combined company’s actual results, performance, or achievements to differ materially from those expressed in or implied by any of the forward-looking statements. Other factors, including unknown or unpredictable factors, also could harm UMB’s, HTLF’s or the combined company’s results. All forward-looking statements attributable to UMB, HTLF, or the combined company, or persons acting on UMB’s or HTLF’s behalf, are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made and UMB and HTLF do not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If UMB or HTLF update one or more forward-looking statements, no inference should be drawn that UMB or HTLF will make additional updates with respect to those or other forward-looking statements. Further information regarding UMB, HTLF and factors which could affect the forward-looking statements contained herein can be found in UMB’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (and which is available at on the SEC’s archive site, here,) and its other filings with the SEC, and in HTLF’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (and which is available here,) and its other filings with the SEC.

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Market and Industry Data. Unless otherwise indicated, market data and certain industry forecast data used in this presentation were obtained from internal reports, where appropriate, as well as third party sources and other publicly available information. Data regarding the industries in which the Company competes, its market position and market share within these industries are inherently imprecise and are subject to significant business, economic and competitive uncertainties beyond the Company’s control. In addition, assumptions and estimates of the Company and its industries’ future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause future performance to differ materially from assumptions and estimates.   HTLF Data. Unless otherwise indicated, data about HTLF provided in this presentation, including financial information, has been obtained from HTLF management and its public filings with the Securities and Exchange Commission.   Pro Forma Forward-Looking Data. Neither our nor HTLF’s independent registered public accounting firms have studied, reviewed or performed any procedures with respect to the pro forma forward-looking financial data and, accordingly, neither have expressed an opinion or provided any form of assurance with respect thereto for the purpose of this presentation. These pro forma forward-looking financial data are for illustrative purposes only and should not be relied on as necessarily being indicative of future results. The assumptions and estimates underlying the pro forma forward-looking financial data are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information, including those in the “Forward-Looking Statements” disclaimer above. Pro forma forward-looking financial data is inherently uncertain due to a number of factors outside of our or HTLF’s control.   Additional Information about the Transaction and Where to Find It. This presentation does not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any securities or a solicitation of any vote or approval. In connection with the Transaction, UMB filed a Registration Statement on Form S-4 to register the shares of UMB capital stock to be issued in connection with the Transaction. The Registration Statement includes a joint proxy statement of UMB and HTLF that also constitutes a prospectus of UMB. The definitive joint proxy statement/prospectus was sent to shareholders of UMB and of HTLF seeking their approval of the Transaction and other related matters.   Investors and security holders are urged to read the Registration Statement on Form S-4 and the joint proxy statement / prospectus, as well as any other relevant documents filed with the SEC in connection with the transaction or incorporated by reference, because they will contain important information regarding UMB, HTLF, the transaction and related matters.   Investors may obtain free copies of these documents and other documents filed with the SEC through websites maintained by the SEC, UMB and HTLF at http://www.sec.gov, www.UMB.com, or www.htlf.com. UMB documents filed with the SEC are available free of charge by accessing the “Investor Relations” page of UMB’s website, or by directing a mailed request to UMB, Attn: Corporate Secretary, 1010 Grand Blvd., Kansas City, MO 64106. HTLF documents filed with the SEC are available free of charge by accessing the “Investor Relations” tab of HTLF’s website or, by directing a request to HTLF’s Corporate Secretary, 1800 Larimer St., #1800, Denver, CO 80202. Information from these websites is not incorporated by reference within this presentation. Additional Information – HTLF Acquisition

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Peer Group

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Non-GAAP Reconciliations The following are non-GAAP measures used from time to time. To the extent a non-GAAP measure is used in this presentation, a reconciliation to such measure’s closest GAAP equivalent is provided below. UMB believes that these non-GAAP financial measures may be useful to investors because they adjust for items that management does not believe reflect the Company’s fundamental operating performance. Tangible book value per share is defined as total shareholders’ equity, net of intangible assets, divided by total shares outstanding. Net operating income is defined as GAAP net income, adjusted to exclude expenses related to acquisitions and severance, the FDIC special assessment, and the cumulative tax impact of these adjustments. Operating PTPP income for the relevant period is defined as GAAP net interest income plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions, severance expense, and the FDIC special assessment. Tangible common equity ratio is total shareholders’ equity, net of intangible assets, divided by total assets, net of intangible assets. Return on tangible common equity is calculated as net income divided by average tangible shareholders' equity for the relevant period. Operating return on tangible common equity is calculated as net operating income, divided by average tangible shareholders’ equity. Tangible Book Value Unaudited, dollars in thousands except per share data.

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Non-GAAP Reconciliations Unaudited, dollars in thousands except per share data. (1) Calculated using the company’s marginal tax rate of 23.0% for 2024 and 24.0% for 2023. Net Operating Income Net operating income is defined as GAAP net income, adjusted to exclude expenses related to acquisitions and severance, the FDIC special assessment in first and second quarter 2024, and the cumulative tax impact of these adjustments.

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Non-GAAP Reconciliations Operating Pre-Tax, Pre-Provision Income Unaudited, dollars in thousands except per share data. Operating PTPP income for the relevant period is defined as GAAP net interest income plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions and severance, the FDIC special assessment.

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Tangible common equity ratio is calculated as total shareholders’ equity, net of intangible assets, divided by total assets, net of intangible assets. Non-GAAP Reconciliations Unaudited, dollars in thousands. Tangible Common Equity Ratio

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Non-GAAP Reconciliations Return on tangible common equity is calculated as net income divided by the company's average tangible shareholders' equity for the relevant period. Operating return on tangible common equity is calculated as net operating income, divided by the company’s average tangible shareholders’ equity. Unaudited, dollars in thousands. Return on Tangible Common Equity Operating Return on Tangible Common Equity

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