Equibles

8-K

UMB FINANCIAL CORP (UMBF)

8-K 2023-10-24 For: 2023-10-24
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): 10/24/2023

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 October 24, 2023, UMB Financial Corporation (the “Company”) issued a press release announcing the financial results for the Company for the quarter and period ended September 30, 2023. 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 October 24, 2023, 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 January 2, 2024 to shareholders of record of the Company as of the close of business on December 11, 2023.

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 October 25, 2023. 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 October 24, 2023, 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 quarter and period ended September 30, 2023, and announcing dividend declaration.
99.2 Investor Presentation Materials, dated October 24, 2023.
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: October 24, 2023

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: 816.860.5088

Investor Relations Contact: Kay Gregory: 816.860.7106

UMB Financial Corporation Reports Third Quarter Net Income of $96.6 Million

Third Quarter 2023 Financial Highlights

• GAAP net income of $96.6 million, or $1.98 per diluted share.

• Net operating income(i) of $98.4 million, or $2.02 per diluted share.

• Average loans increased 10.1% on a linked-quarter, annualized basis, to $22.8 billion, or an 18.0% increase as compared to the third quarter of 2022.

• Deposit balances at September 30, 2023 totaled $33.4 billion, up from $31.8 billion at September 30, 2022, and consistent with June 30, 2023 balances.

• Average deposit balances of $31.3 billion, increased 5.1% as compared to the third quarter of 2022.

• Net interest margin of 2.43%, consistent with the linked quarter.

• Credit quality remained strong, with net charge-offs of just 0.08% of total loans and non-performing loans representing 0.07% of total loans, compared to 0.09% as of June 30, 2023.

KANSAS CITY, Mo. (October 24, 2023) – UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the third quarter of 2023 of $96.6 million, or $1.98 per diluted share, compared to $90.1 million, or $1.85 per diluted share, in the second quarter of 2023 (linked quarter) and $88.0 million, or $1.81 per diluted share, in the third quarter of 2022.

Net operating income, a non-GAAP financial measure reconciled later in this release to net income, the nearest comparable GAAP measure, was $98.4 million, or $2.02 per diluted share, for the third quarter of 2023, compared to $93.8 million, or $1.93 per diluted share, for the linked quarter and $88.3 million, or $1.82 per diluted share, for the third quarter of 2022. 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 $126.6 million, or $2.60 per diluted share, for the third quarter of 2023, compared to $127.9 million, or $2.63 per diluted share, for the linked quarter, and $131.2 million, or $2.70 per diluted share, for the third quarter of 2022. These operating PTPP results represent decreases of 1.0% on a linked-quarter basis and 3.5%, compared to the third quarter of 2022.

“Our third quarter results demonstrated strong loan growth, stable deposits, continued momentum in many of our fee generating businesses, and solid asset quality,” said Mariner Kemper, chairman, president and chief executive officer. “Average loan balances increased more than 10% on a linked-quarter, annualized basis, driven primarily by construction draws and commercial & industrial loan growth. While net interest income for the industry continues to be impacted by higher interest costs paid to deposit clients, our net interest margin in the third quarter was essentially flat on a linked-quarter basis. Our loan portfolio, predominantly indexed to short-term interest rates, continues to reprice in the current interest rate environment as evidenced by the 21 basis points increase in loan yields as compared to the second

quarter. Client sentiment remains cautiously optimistic amidst an uncertain geopolitical and interest rate environment. At UMB, our overall portfolio health remains solid as evidenced by a low loan loss ratio of just 0.08% of average loans and nonperforming loans comprising just 0.07% of total loans.”

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

Third Quarter 2023 earnings discussion

Summary of quarterly financial results UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
Q3 Q2 Q3
2023 2023 2022
Net income (GAAP) $ 96,554 $ 90,110 $ 87,990
Earnings per share (diluted) 1.98 1.85 1.81
Operating pre-tax, pre-provision income (Non-GAAP)(i) 126,592 127,929 131,166
Operating pre-tax, pre-provision earnings per share (diluted) 2.60 2.63 2.70
Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i) 133,151 134,504 137,620
Operating pre-tax, pre-provision earnings per share - FTE (diluted) 2.73 2.77 2.83
Net operating income (Non-GAAP)(i) 98,400 93,841 88,259
Operating earnings per share (diluted) 2.02 1.93 1.82
GAAP
Return on average assets 0.97 % 0.90 % 0.96 %
Return on average equity 13.25 12.56 12.90
Efficiency ratio 64.51 65.59 63.58
Non-GAAP (i)
Operating return on average assets 0.99 % 0.93 % 0.96 %
Operating return on average equity 13.50 13.08 12.94
Operating return on average tangible equity excluding AOCI 11.77 11.63 11.34
Operating efficiency ratio 63.83 64.24 63.49

(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) September September
YTD YTD
2023 2022
Net income (GAAP) $ 279,101 $ 331,509
Earnings per share (diluted) 5.73 6.80
Operating pre-tax, pre-provision income (Non-GAAP)(i) 389,890 437,617
Operating pre-tax, pre-provision earnings per share (diluted) 8.00 8.98
Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i) 409,579 456,748
Operating pre-tax, pre-provision earnings per share - FTE (diluted) 8.40 9.37
Net operating income (Non-GAAP)(i) 285,077 331,928
Operating earnings per share (diluted) 5.85 6.81
GAAP
Return on average assets 0.95 % 1.18 %
Return on average equity 13.18 16.05
Efficiency ratio 64.40 59.86
Non-GAAP (i)
Operating return on average assets 0.97 % 1.18 %
Operating return on average equity 13.46 16.07
Operating return on average tangible equity excluding AOCI 11.86 14.93
Operating efficiency ratio 63.68 59.81

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

Summary of revenue UMB Financial Corporation
(unaudited, dollars in thousands)
Q3 Q2 Q3 CQ vs. CQ vs.
2023 2023 2022 LQ PY
Net interest income $ 222,287 $ 225,611 $ 233,485 $ (3,324 ) $ (11,198 )
Noninterest income:
Trust and securities processing 66,668 61,589 59,586 5,079 7,082
Trading and investment banking 3,771 4,800 5,387 (1,029 ) (1,616 )
Service charges on deposit accounts 21,080 21,381 19,932 (301 ) 1,148
Insurance fees and commissions 272 225 375 47 (103 )
Brokerage fees 13,400 13,604 13,840 (204 ) (440 )
Bankcard fees 19,296 18,579 19,379 717 (83 )
Investment securities gains (losses), net 271 900 (1,345 ) (629 ) 1,616
Other 8,559 17,004 11,569 (8,445 ) (3,010 )
Total noninterest income $ 133,317 $ 138,082 $ 128,723 $ (4,765 ) $ 4,594
Total revenue $ 355,604 $ 363,693 $ 362,208 $ (8,089 ) $ (6,604 )
Net interest income (FTE) $ 228,846 $ 232,186 $ 239,939
Net interest margin (FTE) 2.43 % 2.44 % 2.76 %
Total noninterest income as a % of total revenue 37.5 38.0 35.5

Net interest income

• Third quarter 2023 net interest income totaled $222.3 million, a decrease of $3.3 million, or 1.5%, from the linked quarter, driven by higher interest expense due primarily to unfavorable mix shift in the composition of liabilities, combined with the impact of higher short-term interest rates. This decrease was partially offset by continued growth in average loans, coupled with increased loan yields.

• Average earning assets decreased $866.4 million, or 2.3%, from the linked quarter, largely driven by decreases of $1.2 billion in interest-bearing due from banks and $299.6 million in average securities, partially offset by an increase of $559.9 million in average loans.

• Average interest-bearing liabilities decreased $464.8 million, or 1.8%, from the linked quarter, primarily driven by decreases of $531.4 million in borrowed funds, mostly short-term borrowings, and $309.5 million in federal funds and repurchase agreements. These decreases were partially offset by an increase of $376.1 million in interest-bearing deposits. Average noninterest-bearing deposits decreased $520.6 million, or 4.9%, as compared to the linked quarter.

• Net interest margin for the third quarter was 2.43%, a decrease of one basis point from the linked quarter, driven by increased cost and mix of interest-bearing liabilities, partially offset by improved loan yields, the benefit of free funds, and earning asset mix changes. The cost of interest-bearing liabilities increased 24 basis points to 3.82%. Total cost of funds increased 19 basis points from the linked quarter to 2.75%. Average loan yields increased 21 basis points while earning asset yields increased 17 basis points from the linked quarter.

• On a year-over-year basis, net interest income decreased $11.2 million, or 4.8%, driven by higher interest expense primarily due to unfavorable mix shift in the composition of liabilities, as well as the impact of higher short-term interest rates. This decrease was partially offset by a $3.5 billion, or 18.0%, increase in average loans.

• Compared to the third quarter of 2022, average earning assets increased $2.9 billion, or 8.5%, largely driven by the increase in average loans noted above, partially offset by a decrease of $933.2 million in average securities.

• Average deposits increased 5.1% compared to the third quarter of 2022. Average noninterest-bearing demand deposit balances decreased 19.2% compared to the third quarter of 2022, driven by migration to rate-bearing deposit categories, as expected in a higher interest rate environment. Average demand deposit balances comprised 32.0% of total deposits, compared to 33.5% in the linked quarter and 41.6% in the third quarter of 2022.

• Average borrowed funds decreased $531.4 million as compared to the linked quarter and increased $2.3 billion as compared to the third quarter of 2022, driven by short-term borrowings with the Federal Home Loan Bank and the Federal Reserve Discount Window.

Noninterest income

• Third quarter 2023 noninterest income decreased $4.8 million, or 3.5%, on a linked-quarter basis, largely due to:

o A decrease of $8.4 million in other income, primarily related to a $4.0 million gain on sale of other assets recorded in the second quarter, coupled with decreases of $3.5 million in company-owned life insurance income and $0.9 million in derivative income. The decrease in company-owned life insurance was offset by a proportionate decrease in deferred compensation expense as noted below.

o A decrease of $1.0 million in trading and investment banking due to decreased trading volume.

o These decreases were partially offset by increases of $3.2 million in fund services income, $1.3 million in corporate trust income, and $0.6 million in trust servicing income, all recorded in trust and securities processing.

• Compared to the prior year, noninterest income in the third quarter of 2023 increased $4.6 million, or 3.6%, primarily driven by:

o Increases of $4.1 million in fund services income, $2.4 million in corporate trust income, and $0.6 million in trust servicing income, all recorded in trust and securities processing.

o An increase of $1.6 million in investment securities gains, primarily driven by increased valuations in the company's marketable securities.

o An increase of $0.5 million in bank-owned life insurance income, recorded in other income.

o These increases were partially offset by decreases of $2.7 million in company-owned life insurance income and $1.3 million in derivative income, both recorded in other income. The decrease in company-owned life insurance was offset by a proportionate decrease in deferred compensation expense as noted below.

Noninterest expense

Summary of noninterest expense UMB Financial Corporation
(unaudited, dollars in thousands)
Q3 Q2 Q3 CQ vs. CQ vs.
2023 2023 2022 LQ PY
Salaries and employee benefits $ 133,380 $ 143,312 $ 136,467 $ (9,932 ) $ (3,087 )
Occupancy, net 12,283 11,746 12,231 537 52
Equipment 17,204 17,086 18,811 118 (1,607 )
Supplies and services 3,213 4,195 3,139 (982 ) 74
Marketing and business development 6,631 7,124 6,671 (493 ) (40 )
Processing fees 26,016 26,572 20,901 (556 ) 5,115
Legal and consulting 7,230 7,059 10,255 171 (3,025 )
Bankcard 8,852 8,307 6,551 545 2,301
Amortization of other intangible assets 2,124 2,117 1,092 7 1,032
Regulatory fees 6,153 6,123 4,200 30 1,953
Other 8,355 7,032 11,078 1,323 (2,723 )
Total noninterest expense $ 231,441 $ 240,673 $ 231,396 $ (9,232 ) $ 45

• Noninterest expense for the third quarter of 2023 was $231.4 million, a decrease of $9.2 million, or 3.8%, from the linked quarter and an increase of $0.1 million from the third quarter of 2022. Operating noninterest expense, a non-GAAP financial measure reconciled later in this release to noninterest expense, the nearest comparable GAAP measure, was $229.0 million for the third quarter of 2023, a decrease of $6.8 million, or 2.9%, from the linked quarter and a decrease of $2.0 million, or 0.9%, from the third quarter of 2022.

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

o A decrease of $9.9 million in salaries and employee benefits expense driven by decreases of $5.3 million in employee benefits expense and $4.6 million in salaries and bonus expense. The decrease in employee benefits was driven by a decrease in deferred compensation expense of $2.8 million and a decrease of $1.3 million in other employee benefits. The decrease in salaries and bonus expense was due to a decrease of $2.5 million in severance expense and a decrease of $1.6 million in salary and wage expense.

The decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.

o These decreases were partially offset by an increase of $1.3 million in operational losses as compared to the linked quarter.

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

o An increase of $5.1 million in processing fees expense due to the ongoing modernization of the company’s core systems and the timing of multiple software projects.

o This increase was partially offset by the following decreases:

▪ A decrease of $3.1 million in salaries and employee benefits expense, driven primarily by decreases of $1.6 million in salaries and bonus expense and $1.5 million in employee benefits expense. The decrease in salaries and wage expense is primarily due to a decrease in bonus and commission expense. The decrease in employee benefits expense is due to a decrease of $1.9 million in deferred compensation plan expense. The decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.

▪ A decrease of $3.0 million in legal and consulting expense due to the timing of multiple projects.

Income taxes

• The company’s effective tax rate was 18.1% for the nine months ended September 30, 2023, compared to 18.8% for the same period in 2022. The decrease in the effective tax rate in 2023 is primarily attributable to a larger portion of income being earned from tax-exempt municipal securities.

Balance sheet

• Average total assets for the third quarter of 2023 were $39.5 billion compared to $40.4 billion for the linked quarter and $36.3 billion for the same period in 2022.

Summary of average loans and leases - QTD Average UMB Financial Corporation
(unaudited, dollars in thousands)
Q3 Q2 Q3 CQ vs. CQ vs.
2023 2023 2022 LQ PY
Commercial and industrial $ 9,852,335 $ 9,724,300 $ 8,417,174 $ 128,035 $ 1,435,161
Specialty lending 526,711 574,220 559,797 (47,509 ) (33,086 )
Commercial real estate 8,545,206 8,178,463 6,892,484 366,743 1,652,722
Consumer real estate 2,922,753 2,833,739 2,574,926 89,014 347,827
Consumer 139,384 139,705 142,348 (321 ) (2,964 )
Credit cards 477,904 485,749 438,235 (7,845 ) 39,669
Leases and other 287,174 255,425 259,298 31,749 27,876
Total loans $ 22,751,467 $ 22,191,601 $ 19,284,262 $ 559,866 $ 3,467,205

• Average loans for the third quarter of 2023 increased $559.9 million, or 2.5%, on a linked-quarter basis and $3.5 billion, or 18.0%, compared to the third quarter of 2022.

Summary of average securities - QTD Average UMB Financial Corporation
(unaudited, dollars in thousands)
Q3 Q2 Q3 CQ vs. CQ vs.
2023 2023 2022 LQ PY
Securities available for sale:
U.S. Treasury $ 786,136 $ 797,104 $ 746,429 $ (10,968 ) $ 39,707
U.S. Agencies 172,832 189,091 173,980 (16,259 ) (1,148 )
Mortgage-backed 3,611,305 3,813,234 4,363,838 (201,929 ) (752,533 )
State and political subdivisions 1,275,591 1,319,398 1,600,043 (43,807 ) (324,452 )
Corporates 345,026 349,318 381,151 (4,292 ) (36,125 )
Collateralized loan obligations 346,426 348,078 300,475 (1,652 ) 45,951
Total securities available for sale $ 6,537,316 $ 6,816,223 $ 7,565,916 $ (278,907 ) $ (1,028,600 )
Securities held to maturity:
U.S. Agencies $ 123,165 $ 123,135 $ 123,048 $ 30 $ 117
Mortgage-backed 2,814,467 2,878,657 3,039,998 (64,190 ) (225,531 )
State and political subdivisions 2,828,029 2,822,218 2,621,633 5,811 206,396
Total securities held to maturity $ 5,765,661 $ 5,824,010 $ 5,784,679 $ (58,349 ) $ (19,018 )
Trading securities $ 17,327 $ 12,538 $ 5,651 $ 4,789 $ 11,676
Other securities 445,380 407,754 330,950 37,626 114,430
Total securities $ 12,765,684 $ 13,060,525 $ 13,687,196 $ (294,841 ) $ (921,512 )

• Average total securities decreased 2.3% on a linked-quarter basis and decreased 6.7% compared to the third quarter of 2022.

• At September 30, 2023, the unrealized pre-tax net loss on the available-for-sale securities portfolio was $917.8 million, or 12.7% of the $7.2 billion amortized cost value. At September 30, 2023, the unrealized pre-tax net loss on the securities designated as held to maturity was $876.1 million, or 15.3% of the $5.7 billion amortized cost value.

• During 2022, the company transferred securities with an amortized cost balance of $4.1 billion and a fair value of $3.8 billion from the available-for-sale category to the held-to-maturity category. The remaining balance of unrealized pre-tax net losses related to transferred securities was $216.5 million as of September 30, 2023 and was included in the amortized cost balance of held-to-maturity securities.

• At September 30, 2023, an after-tax gain of $55.9 million was included in accumulated other comprehensive income (AOCI) related to the company’s fair value hedges of municipal securities. During 2021, the company entered into ten of these hedge transactions, all of which have since been terminated. The gain on the terminated hedges is being amortized over the remaining life of the underlying bonds.

Summary of average deposits - QTD Average UMB Financial Corporation
(unaudited, dollars in thousands)
Q3 Q2 Q3 CQ vs. CQ vs.
2023 2023 2022 LQ PY
Deposits:
Noninterest-bearing demand $ 10,014,686 $ 10,535,325 $ 12,394,251 $ (520,639 ) $ (2,379,565 )
Interest-bearing demand and savings 18,142,212 17,463,022 16,723,205 679,190 1,419,007
Time deposits 3,173,549 3,476,616 679,994 (303,067 ) 2,493,555
Total deposits $ 31,330,447 $ 31,474,963 $ 29,797,450 $ (144,516 ) $ 1,532,997
Noninterest bearing deposits as % of total 32.0 % 33.5 % 41.6 %

• Average deposits decreased 0.5% on a linked-quarter basis and increased 5.1% compared to the third quarter of 2022.

• As of September 30, 2023, the total estimated uninsured deposits were $20.7 billion, or approximately 62.0% of total deposits. Estimated uninsured deposits, when adjusted to exclude affiliate (company-owned) and collateralized deposits, were $14.2 billion, and represented approximately 42.6% of total deposits.

Capital

Capital information UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
September 30, 2023 June 30, 2023 September 30, 2022
Total equity $ 2,806,659 $ 2,831,628 $ 2,523,545
Accumulated other comprehensive loss, net (792,371 ) (685,831 ) (759,260 )
Book value per common share 57.83 58.36 52.24
Tangible book value per common share (Non-GAAP)(i) 52.06 52.54 48.19
Regulatory capital:
Common equity Tier 1 capital $ 3,357,986 $ 3,273,841 $ 3,132,209
Tier 1 capital 3,357,986 3,273,841 3,132,209
Total capital 3,955,093 3,870,101 3,679,116
Regulatory capital ratios:
Common equity Tier 1 capital ratio 10.77 % 10.65 % 11.18 %
Tier 1 risk-based capital ratio 10.77 10.65 11.18
Total risk-based capital ratio 12.68 12.59 13.13
Tier 1 leverage ratio 8.55 8.16 8.66

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

• At September 30, 2023, the regulatory capital ratios presented in the foregoing table exceeded all “well-capitalized” regulatory thresholds.

Asset Quality

Credit quality UMB Financial Corporation
(unaudited, dollars in thousands)
Q3 Q2 Q1 Q4 Q3
2023 2023 2023 2022 2022
Net charge-offs (recoveries) - total loans $ 4,618 $ (139 ) $ 4,643 $ 2,189 $ 1,173
Net loan charge-offs (recoveries) as a % of total average loans 0.08 % (0.00 )% 0.09 % 0.04 % 0.02 %
Loans over 90 days past due $ 3,044 $ 10,675 $ 1,723 $ 1,617 $ 2,513
Loans over 90 days past due as a % of total loans 0.01 % 0.05 % 0.01 % 0.01 % 0.01 %
Nonaccrual and restructured loans $ 17,042 $ 19,347 $ 15,480 $ 19,269 $ 19,817
Nonaccrual and restructured loans as a % of total loans 0.07 % 0.09 % 0.07 % 0.09 % 0.10 %
Provision for credit losses $ 4,977 $ 13,000 $ 23,250 $ 9,000 $ 22,000

• Provision for credit losses for the third quarter totaled $5.0 million, a decrease of $8.0 million from the linked quarter and a decrease of $17.0 million from the third quarter of 2022. These changes are driven largely by changes in macro-economic variables in the current period as compared to the prior periods.

• Net charge-offs for the third quarter totaled $4.6 million, or 0.08% of average loans, compared to net recoveries of $0.1 million in the linked quarter, and net charge-offs of $1.2 million, or 0.02% of average loans, for the third quarter of 2022. On a year-to-date basis, net charge-offs totaled $9.1 million, or 0.06% of average loans, compared to $37.7 million, or 0.27% of average loans, for the same period in 2022.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors approved a 2.6% increase in the quarterly cash dividend to $0.39 per share. The cash dividend will be payable on January 2, 2024, to shareholders of record at the close of business on December 11, 2023.

Conference Call

The company plans to host a conference call to discuss its third quarter 2023 earnings results on Wednesday, October 25, 2023, 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 879142. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 3Q 2023 Conference Call

A replay of the conference call may be heard through November 8, 2023, by calling (toll-free)

866-813-9403 or (international) 204-525-0658. The replay access code required for playback is 504739. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial Information

In this release, we may 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, tangible book value per share, and operating return on average tangible equity excluding AOCI, 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, tangible book value per share, and operating return on average tangible equity excluding AOCI – 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 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, 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 expense.

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 expense.

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

Operating return on average tangible equity excluding AOCI is calculated as net operating income, divided by the company’s average tangible shareholders’ equity exclusive of AOCI for the relevant period.

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, 2022, 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)
2022
ASSETS
Loans 22,881,689 $ 19,883,573
Allowance for credit losses on loans (221,462 ) (184,913 )
Net loans 22,660,227 19,698,660
Loans held for sale 2,824 2,870
Securities:
Available for sale 6,330,699 7,128,277
Held to maturity, net of allowance for credit losses 5,729,697 5,835,187
Trading securities 24,509 14,390
Other securities 473,255 333,732
Total securities 12,558,160 13,311,586
Federal funds sold and resell agreements 248,203 716,549
Interest-bearing due from banks 3,556,076 1,768,008
Cash and due from banks 454,705 371,336
Premises and equipment, net 249,037 260,685
Accrued income 208,594 153,759
Goodwill 207,385 182,225
Other intangibles, net 73,060 13,373
Other assets 1,246,411 1,102,011
Total assets 41,464,682 $ 37,581,062
LIABILITIES
Deposits:
Noninterest-bearing demand 11,254,885 $ 13,876,929
Interest-bearing demand and savings 18,833,614 17,059,492
Time deposits under 250,000 2,834,181 365,644
Time deposits of 250,000 or more 509,072 504,323
Total deposits 33,431,752 31,806,388
Federal funds purchased and repurchase agreements 1,757,602 2,314,168
Short-term debt 2,300,000 —
Long-term debt 382,768 381,543
Accrued expenses and taxes 319,283 211,465
Other liabilities 466,618 343,953
Total liabilities 38,658,023 35,057,517
SHAREHOLDERS' EQUITY
Common stock 55,057 55,057
Capital surplus 1,128,239 1,120,489
Retained earnings 2,759,415 2,454,422
Accumulated other comprehensive loss, net (792,371 ) (759,260 )
Treasury stock (343,681 ) (347,163 )
Total shareholders' equity 2,806,659 2,523,545
Total liabilities and shareholders' equity 41,464,682 $ 37,581,062

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 Nine Months Ended
September 30, September 30,
2023 2022 2023 2022
INTEREST INCOME
Loans $ 367,485 $ 216,970 $ 1,018,920 $ 536,359
Securities:
Taxable interest 53,455 50,003 161,091 140,680
Tax-exempt interest 25,704 24,692 76,560 72,085
Total securities income 79,159 74,695 237,651 212,765
Federal funds and resell agreements 4,567 6,056 14,107 12,003
Interest-bearing due from banks 20,551 2,545 70,923 9,209
Trading securities 214 73 502 372
Total interest income 471,976 300,339 1,342,103 770,708
INTEREST EXPENSE
Deposits 191,919 48,457 490,368 70,069
Federal funds and repurchase agreements 23,076 14,709 71,123 21,855
Other 34,694 3,688 91,018 10,153
Total interest expense 249,689 66,854 652,509 102,077
Net interest income 222,287 233,485 689,594 668,631
Provision for credit losses 4,977 22,000 41,227 28,900
Net interest income after provision for credit losses 217,310 211,485 648,367 639,731
NONINTEREST INCOME
Trust and securities processing 66,668 59,586 190,616 178,000
Trading and investment banking 3,771 5,387 13,879 17,950
Service charges on deposit accounts 21,080 19,932 63,620 65,409
Insurance fees and commissions 272 375 771 879
Brokerage fees 13,400 13,840 40,680 29,687
Bankcard fees 19,296 19,379 56,047 53,854
Investment securities gains (losses), net 271 (1,345 ) (4,153 ) 58,853
Other 8,559 11,569 40,139 24,104
Total noninterest income 133,317 128,723 401,599 428,736
NONINTEREST EXPENSE
Salaries and employee benefits 133,380 136,467 419,190 388,491
Occupancy, net 12,283 12,231 36,206 36,439
Equipment 17,204 18,811 52,139 55,290
Supplies and services 3,213 3,139 11,283 9,893
Marketing and business development 6,631 6,671 19,090 16,911
Processing fees 26,016 20,901 75,828 58,682
Legal and consulting 7,230 10,255 21,574 28,431
Bankcard 8,852 6,551 24,292 18,998
Amortization of other intangible assets 2,124 1,092 6,539 3,388
Regulatory fees 6,153 4,200 17,827 11,146
Other 8,355 11,078 25,198 32,632
Total noninterest expense 231,441 231,396 709,166 660,301
Income before income taxes 119,186 108,812 340,800 408,166
Income tax expense 22,632 20,822 61,699 76,657
NET INCOME $ 96,554 $ 87,990 $ 279,101 $ 331,509
PER SHARE DATA
Net income – basic $ 1.99 $ 1.82 $ 5.76 $ 6.86
Net income – diluted 1.98 1.81 5.73 6.80
Dividends 0.38 0.37 1.14 1.11
Weighted average shares outstanding – basic 48,525,776 48,300,129 48,492,022 48,351,007
Weighted average shares outstanding – diluted 48,762,696 48,648,804 48,737,065 48,723,572
Consolidated Statements of Comprehensive Income UMB Financial Corporation
--- --- --- --- --- --- --- --- --- --- --- --- ---
(unaudited, dollars in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2023 2022 2023 2022
Net income $ 96,554 $ 87,990 $ 279,101 $ 331,509
Other comprehensive loss, before tax:
Unrealized gains and losses on debt securities:
Change in unrealized holding gains and losses, net (151,753 ) (271,079 ) (145,601 ) (1,202,341 )
Less: Reclassification adjustment for net (gains) losses included in net income (154 ) — 279 —
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity 10,268 12,587 30,563 25,708
Change in unrealized gains and losses on debt securities (141,639 ) (258,492 ) (114,759 ) (1,176,633 )
Unrealized gains and losses on derivative hedges:
Change in unrealized gains and losses on derivative hedges, net 3,927 3,321 4,248 12,438
Less: Reclassification adjustment for net gains included in net income (2,844 ) (1,470 ) (8,065 ) (3,411 )
Change in unrealized gains and losses on derivative hedges 1,083 1,851 (3,817 ) 9,027
Other comprehensive loss, before tax (140,556 ) (256,641 ) (118,576 ) (1,167,606 )
Income tax benefit 34,016 62,184 28,940 282,032
Other comprehensive loss (106,540 ) (194,457 ) (89,636 ) (885,574 )
Comprehensive (loss) income $ (9,986 ) $ (106,467 ) $ 189,465 $ (554,065 )
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 Income (Loss) Treasury<br>Stock Total
Balance - January 1, 2022 55,057 $ 1,110,520 $ 2,176,998 $ 126,314 $ (323,465 ) $ 3,145,424
Total comprehensive income (loss) — — 331,509 (885,574 ) — (554,065 )
Dividends (1.11 per share) — — (54,085 ) — — (54,085 )
Purchase of treasury stock — — — — (31,806 ) (31,806 )
Issuances of equity awards, net of forfeitures — (6,630 ) — — 7,309 679
Recognition of equity-based compensation — 16,062 — — — 16,062
Sale of treasury stock — 257 — — 172 429
Exercise of stock options — 280 — — 627 907
Balance - September 30, 2022 55,057 $ 1,120,489 $ 2,454,422 $ (759,260 ) $ (347,163 ) $ 2,523,545
Balance - January 1, 2023 55,057 $ 1,125,949 $ 2,536,086 $ (702,735 ) $ (347,264 ) $ 2,667,093
Total comprehensive income (loss) — — 279,101 (89,636 ) — 189,465
Dividends (1.14 per share) — — (55,772 ) — — (55,772 )
Purchase of treasury stock — — — — (8,096 ) (8,096 )
Issuances of equity awards, net of forfeitures — (10,115 ) — — 10,834 719
Recognition of equity-based compensation — 11,983 — — — 11,983
Sale of treasury stock — 167 — — 216 383
Exercise of stock options — 255 — — 629 884
Balance - September 30, 2023 55,057 $ 1,128,239 $ 2,759,415 $ (792,371 ) $ (343,681 ) $ 2,806,659

All values are in US Dollars.

Average Balances / Yields and Rates UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
Three Months Ended September 30,
2023 2022
Average Average Average Average
Balance Yield/Rate Balance Yield/Rate
Assets
Loans, net of unearned interest $ 22,751,467 6.41 % $ 19,284,262 4.46 %
Securities:
Taxable 8,964,467 2.37 9,796,212 2.03
Tax-exempt 3,783,890 3.37 3,885,333 3.18
Total securities 12,748,357 2.66 13,681,545 2.35
Federal funds and resell agreements 303,864 5.96 848,844 2.83
Interest bearing due from banks 1,548,867 5.26 632,595 1.60
Trading securities 17,327 5.31 5,651 5.69
Total earning assets 37,369,882 5.08 34,452,897 3.53
Allowance for credit losses (227,878 ) (167,939 )
Other assets 2,381,496 2,025,193
Total assets $ 39,523,500 $ 36,310,151
Liabilities and Shareholders' Equity
Interest-bearing deposits $ 21,315,761 3.57 % $ 17,403,199 1.10 %
Federal funds and repurchase agreements 2,027,382 4.52 3,055,164 1.91
Borrowed funds 2,605,897 5.28 294,739 4.96
Total interest-bearing liabilities 25,949,040 3.82 20,753,102 1.28
Noninterest-bearing demand deposits 10,014,686 12,394,251
Other liabilities 667,920 456,992
Shareholders' equity 2,891,854 2,705,806
Total liabilities and shareholders' equity $ 39,523,500 $ 36,310,151
Net interest spread 1.26 % 2.25 %
Net interest margin 2.43 2.76
Average Balances / Yields and Rates UMB Financial Corporation
--- --- --- --- --- --- --- --- --- --- --- --- ---
(tax - equivalent basis)
(unaudited, dollars in thousands)
Nine Months Ended September 30,
2023 2022
Average Average Average Average
Balance Yield/Rate Balance Yield/Rate
Assets
Loans, net of unearned interest $ 22,076,977 6.17 % $ 18,328,139 3.91 %
Securities:
Taxable 9,179,230 2.35 9,695,499 1.94
Tax-exempt 3,816,122 3.36 3,912,590 3.11
Total securities 12,995,352 2.64 13,608,089 2.28
Federal funds and resell agreements 343,297 5.49 1,070,319 1.50
Interest bearing due from banks 1,935,029 4.90 2,841,510 0.43
Trading securities 13,071 5.56 12,170 4.86
Total earning assets 37,363,726 4.87 35,860,227 2.94
Allowance for credit losses (213,744 ) (182,647 )
Other assets 2,322,171 1,988,189
Total assets $ 39,472,153 $ 37,665,769
Liabilities and Shareholders' Equity
Interest-bearing deposits $ 20,638,982 3.18 % $ 17,775,016 0.53 %
Federal funds and repurchase agreements 2,273,826 4.18 2,896,021 1.01
Borrowed funds 2,319,652 5.25 279,659 4.85
Total interest-bearing liabilities 25,232,460 3.46 20,950,696 0.65
Noninterest-bearing demand deposits 10,816,120 13,537,023
Other liabilities 591,919 416,492
Shareholders' equity 2,831,654 2,761,558
Total liabilities and shareholders' equity $ 39,472,153 $ 37,665,769
Net interest spread 1.41 % 2.29 %
Net interest margin 2.54 2.56
Business Segment Information UMB Financial Corporation
--- --- --- --- --- --- --- --- --- ---
(unaudited, dollars in thousands)
Three Months Ended September 30, 2023
Commercial Banking Institutional Banking Personal Banking Total
Net interest income $ 148,666 $ 43,133 $ 30,488 $ 222,287
Provision for credit losses 3,010 423 1,544 4,977
Noninterest income 23,091 86,521 23,705 133,317
Noninterest expense 81,767 87,502 62,172 231,441
Income (loss) before taxes 86,980 41,729 (9,523 ) 119,186
Income tax expense (benefit) 16,311 7,866 (1,545 ) 22,632
Net income (loss) $ 70,669 $ 33,863 $ (7,978 ) $ 96,554
Three Months Ended September 30, 2022
Commercial Banking Institutional Banking Personal Banking Total
Net interest income $ 150,080 $ 43,382 40,023 $ 233,485
Provision for credit losses 20,156 162 1,682 22,000
Noninterest income 16,785 89,386 22,552 128,723
Noninterest expense 87,120 82,073 62,203 231,396
Income (loss) before taxes 59,589 50,533 (1,310 ) 108,812
Income tax expense 12,859 7,735 228 20,822
Net income (loss) $ 46,730 $ 42,798 $ (1,538 ) $ 87,990
Nine Months Ended September 30, 2023
Commercial Banking Institutional Banking Personal Banking Total
Net interest income $ 444,083 $ 148,615 $ 96,896 $ 689,594
Provision for credit losses 35,110 754 5,363 41,227
Noninterest income 71,658 257,573 72,368 401,599
Noninterest expense 251,667 268,464 189,035 709,166
Income (loss) before taxes 228,964 136,970 (25,134 ) 340,800
Income tax expense (benefit) 41,114 24,558 (3,973 ) 61,699
Net income (loss) $ 187,850 $ 112,412 $ (21,161 ) $ 279,101
Nine Months Ended September 30, 2022
Commercial Banking Institutional Banking Personal Banking Total
Net interest income $ 444,176 $ 104,615 $ 119,840 $ 668,631
Provision for credit losses 25,183 402 3,315 28,900
Noninterest income 100,379 243,740 84,617 428,736
Noninterest expense 246,230 234,185 179,886 660,301
Income before taxes 273,142 113,768 21,256 408,166
Income tax expense 52,001 22,353 2,303 76,657
Net income $ 221,141 $ 91,415 $ 18,953 $ 331,509

The company has strategically aligned its operations into the following three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking. Senior executive officers regularly evaluate business segment financial results produced by the company’s internal reporting system in deciding how to allocate resources and assess performance for individual business segments. The company’s reportable segments include certain corporate overhead, technology and service costs that are allocated based on methodologies that are applied consistently between periods. For comparability purposes, amounts in all periods are based on methodologies in effect at September 30, 2023.

Non-GAAP Financial Measures

Net operating income Non-GAAP reconciliations: UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Net income (GAAP) $ 96,554 $ 87,990 $ 279,101 $ 331,509
Adjustments:
Acquisition expense 70 71 127 71
Severance expense 2,359 283 7,736 480
Tax-impact of adjustments (i) (583 ) (85 ) (1,887 ) (132 )
Total Non-GAAP adjustments (net of tax) 1,846 269 5,976 419
Net operating income (Non-GAAP) $ 98,400 $ 88,259 $ 285,077 $ 331,928
Earnings per share - diluted (GAAP) $ 1.98 $ 1.81 $ 5.73 $ 6.80
Acquisition expense — — — —
Severance expense 0.05 0.01 0.16 0.01
Tax-impact of adjustments (i) (0.01 ) — (0.04 ) —
Operating earnings per share - diluted (Non-GAAP) $ 2.02 $ 1.82 $ 5.85 $ 6.81
GAAP
Return on average assets 0.97 % 0.96 % 0.95 % 1.18 %
Return on average equity 13.25 12.90 13.18 16.05
Non-GAAP
Operating return on average assets 0.99 % 0.96 % 0.97 % 1.18 %
Operating return on average equity 13.50 12.94 13.46 16.07

(i) Calculated using the company’s marginal tax rate of 24.0%.

Operating noninterest expense and operating efficiency ratio Non-GAAP reconciliations: UMB Financial Corporation
(unaudited, dollars in thousands)
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Noninterest expense $ 231,441 $ 231,396 $ 709,166 $ 660,301
Adjustments to arrive at operating noninterest expense (pre-tax):
Acquisition expense 70 71 127 71
Severance expense 2,359 283 7,736 480
Total Non-GAAP adjustments (pre-tax) 2,429 354 7,863 551
Operating noninterest expense (Non-GAAP) $ 229,012 $ 231,042 $ 701,303 $ 659,750
Noninterest expense $ 231,441 $ 231,396 $ 709,166 $ 660,301
Less: Amortization of other intangibles 2,124 1,092 6,539 3,388
Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A) $ 229,317 $ 230,304 $ 702,627 $ 656,913
Operating noninterest expense $ 229,012 $ 231,042 $ 701,303 $ 659,750
Less: Amortization of other intangibles 2,124 1,092 6,539 3,388
Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B) $ 226,888 $ 229,950 $ 694,764 $ 656,362
Net interest income $ 222,287 $ 233,485 $ 689,594 $ 668,631
Noninterest income 133,317 128,723 401,599 428,736
Less: Gains on sales of securities available for sale, net 154 — 152 —
Total Non-GAAP Revenue (denominator A) $ 355,450 $ 362,208 $ 1,091,041 $ 1,097,367
Efficiency ratio (numerator A/denominator A) 64.51 % 63.58 % 64.40 % 59.86 %
Operating efficiency ratio (Non-GAAP) (numerator B/denominator A) 63.83 63.49 63.68 59.81
Operating pre-tax, pre-provision income non-GAAP reconciliations: UMB Financial Corporation
--- --- --- --- --- --- --- --- ---
(unaudited, dollars in thousands except per share data)
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Net interest income (GAAP) $ 222,287 $ 233,485 $ 689,594 $ 668,631
Noninterest income (GAAP) 133,317 128,723 401,599 428,736
Noninterest expense (GAAP) 231,441 231,396 709,166 660,301
Adjustments to arrive at operating noninterest expense:
Acquisition expense 70 71 127 71
Severance expense 2,359 283 7,736 480
Total Non-GAAP adjustments 2,429 354 7,863 551
Operating noninterest expense (Non-GAAP) 229,012 231,042 701,303 659,750
Operating pre-tax, pre-provision income (Non-GAAP) $ 126,592 $ 131,166 $ 389,890 $ 437,617
Net interest income earnings per share - diluted (GAAP) $ 4.56 $ 4.80 $ 14.15 $ 13.72
Noninterest income (GAAP) 2.73 2.65 8.24 8.80
Noninterest expense (GAAP) 4.74 4.76 14.55 13.55
Acquisition expense — — — —
Severance expense 0.05 0.01 0.16 0.01
Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP) $ 2.60 $ 2.70 $ 8.00 $ 8.98
Operating pre-tax, pre-provision income - FTE Non-GAAP reconciliations: UMB Financial Corporation
--- --- --- --- --- --- --- --- ---
(unaudited, dollars in thousands except per share data)
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Net interest income (GAAP) $ 222,287 $ 233,485 $ 689,594 $ 668,631
Adjustments to arrive at net interest income - FTE:
Tax equivalent interest 6,559 6,454 19,689 19,131
Net interest income - FTE (Non-GAAP) 228,846 239,939 709,283 687,762
Noninterest income (GAAP) 133,317 128,723 401,599 428,736
Noninterest expense (GAAP) 231,441 231,396 709,166 660,301
Adjustments to arrive at operating noninterest expense:
Acquisition expense 70 71 127 71
Severance expense 2,359 283 7,736 480
Total Non-GAAP adjustments 2,429 354 7,863 551
Operating noninterest expense (Non-GAAP) 229,012 231,042 701,303 659,750
Operating pre-tax, pre-provision income - FTE (Non-GAAP) $ 133,151 $ 137,620 $ 409,579 $ 456,748
Net interest income earnings per share - diluted (GAAP) $ 4.56 $ 4.80 $ 14.15 $ 13.72
Tax equivalent interest 0.13 0.13 0.40 0.39
Net interest income - FTE (Non-GAAP) 4.69 4.93 14.55 14.11
Noninterest income (GAAP) 2.73 2.65 8.24 8.80
Noninterest expense (GAAP) 4.74 4.76 14.55 13.55
Acquisition expense — — — —
Severance expense 0.05 0.01 0.16 0.01
Operating pre-tax, pre-provision income - FTE earnings per share - diluted (Non-GAAP) $ 2.73 $ 2.83 $ 8.40 $ 9.37
Tangible book value non-GAAP reconciliations: UMB Financial Corporation
--- --- --- --- ---
(unaudited, dollars in thousands except share and per share data)
As of September 30,
2023 2022
Total shareholders' equity (GAAP) $ 2,806,659 $ 2,523,545
Less: Intangible assets
Goodwill 207,385 182,225
Other intangibles, net 73,060 13,373
Total intangibles, net 280,445 195,598
Total tangible shareholders' equity (Non-GAAP) $ 2,526,214 $ 2,327,947
Total shares outstanding 48,529,097 48,309,638
Ratio of total shareholders' equity (book value) per share $ 57.83 $ 52.24
Ratio of total tangible shareholders' equity (tangible book value) per share (Non-GAAP) 52.06 48.19
Operating return on average tangible equity excluding AOCI non-GAAP reconciliations: UMB Financial Corporation
--- --- --- --- --- --- --- --- --- --- --- --- ---
(unaudited, dollars in thousands)
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Average total shareholders' equity (GAAP) $ 2,891,854 $ 2,705,806 $ 2,831,654 $ 2,761,558
Less: Average intangible assets
Average goodwill 207,385 182,225 207,385 179,741
Average other intangibles, net 74,444 14,061 75,892 14,476
Average total intangibles, net 281,829 196,286 283,277 194,216
Average total tangible shareholders' equity (Non-GAAP) 2,610,025 2,509,520 2,548,377 2,567,342
Less: Average accumulated other comprehensive loss (AOCI) (706,062 ) (576,947 ) (664,770 ) (405,343 )
Average total tangible shareholders' equity excluding AOCI (Non-GAAP) $ 3,316,087 $ 3,086,467 $ 3,213,147 $ 2,972,685
Net operating income (Non-GAAP) $ 98,400 $ 88,259 $ 285,077 $ 331,928
Non-GAAP
Operating return on average tangible equity excluding AOCI 11.77 % 11.34 % 11.86 % 14.93 %

Slide 1

3rd Quarter 2023 Update October 24, 2023

Slide 2

Presentation Index Corporate Overview Opportunity – Our Investment Thesis 3rd Quarter 2023 Results Line of Business Updates Appendix 3 8 17 33 44 Board of Directors Forward-Looking Statements Non-GAAP Reconciliations Please refer to the Forward-Looking Statements on slide 46 for important disclosures about information contained in this presentation. Peer Group

Slide 3

Corporate Overview Highlights 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, 09/30/23. (1) Includes $11.7B in managed assets and $3.8B in Assets Under Administration for Private Wealth customers; (2) Includes AUA in Fund Services / custody, corporate trust and Healthcare Services; (3) Non-GAAP measure. See reconciliation on slide 51; (4) UMB Bank, n.a. Capital Markets Division. 91 banking centers 240 ATMs UMB Bank Presence & Expansion UMB Financial Corporation Headquarters

Slide 4

Business Model Our Diverse Foundation Commercial & Personal Banking Services 3Q’23 Revenue: $226.0 million. 3Q’23 Average Deposits: $18.1 billion Average loans: $3.1B (1) (2) Average deposits: $6.1B Retail deposit & lending services through 91 branches and online Private banking services Consumer mortgage AUM = $11.7B AUA = $3.8B 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: $19.2B (1) Average deposits: $12.0B Agribusiness Energy Practice finance Mezzanine debt & equity investments Commercial Consumer Private Wealth Institutional Banking Services 3Q’23 Revenue: $129.6 million. 3Q’23 Average Deposits: $11.2 billion Institutional Banking provides solutions for the entire marketplace; $431.0 billion in AUA. (3) 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 (4) 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, 09/30/23 (1) Loan balances exclude credit card; (2) Includes consumer plus residential real estate loans; (3) Includes AUA in Fund Services/custody, corporate trust & Healthcare Services; (4) Products offered through UMB Bank Capital Markets Div.: NOT FDIC INSURED | MAY LOSE VALUE  | NOT BANK GUARANTEED.

Slide 5

An unwavering commitment to doing more for our customers. 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.

Slide 6

Beyond Financials Our Culture 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 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 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. MORE TRUST 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

Slide 7

Beyond Financials Our Commitment to Corporate Citizenship Read our 2022 Corporate Citizenship & ESG 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. $9.0 million in company donations and sponsorships in 2022, supporting underserved communities’ housing needs, small business efforts, education and emerging talent Nearly 1,000 participants in our workplace giving campaign supporting more than 700 qualified nonprofits with pledges of $65k Associates receive 16 hours of paid Volunteer Time Off (VTO) annually, and participants logged nearly 7,500 hours of volunteer time, despite some continuing impact from the pandemic School of Economics provides interactive, educational experiences through curriculum-based field trips for students each year. UMB leases space in downtown KC to the nonprofit for $1. 250 UMB volunteer hours reached more than 4,500 students in 2022 Community Impact 80 UMB buildings use automated systems to conserve energy, with a goal to include all UMB properties by year-end 2023 More than 192k Kilowatt hours generated from solar panels Exterior lighting upgrades to LED saved nearly 678k Kilowatt hours; committed to convert all locations by year-end 2023 2022 recycling efforts produced nearly 15k pounds of comingled recycling, 8k pounds of cardboard and 360 pounds of recycled batteries Beehives housed at a Denver branch support the local honeybee population, with a peak population of 210k bees. In 2022, we harvested 300 pounds of edible honey and 6 pounds of wax 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 2022, 36% of all UMB hires were people of color, 56% were women and 6% were veterans Diversity among executive leadership team – 57%; 8 of 14 members Inclusion & Diversity

Slide 8

Our Investment Thesis

Slide 9

Investment Thesis Our Opportunity 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 5% of total average deposits Long-tenured relationships: Clients that have been with us for more than 15 years hold ~48% 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 32% 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 all 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 22 years with UMB Chief Credit Officer – 37 years with UMB Variable asset base > $1.6 billion of securities cash flow expected within 12 months (1) Average collected balances for September 2023; excludes CDs, health savings and FinTech deposits.

Slide 10

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 traditional peers (15 banks), as of latest available annual period. Source: S&P Global Market Intelligence; Peer group defined on slide 47; (2) Non-GAAP measure. See reconciliation on slide 50; (3) As defined by S&P Global: “Cash, cash equiv. & investment securities/assets.” Tangible Equity / Tangible Assets (2) UMBF Equity / Assets UMBF TCE / Tang. Assets (2)

Slide 11

8% Balance Sheet Growth Across All Business Cycles Average Deposits Average annual balances in billions. Average Deposits Average Total Deposit Cost Peer Median Deposit Cost (1) 2.89% 2.10% 0.53% 25% 4% 14% 16% 11% 14% 10% 20% 13% 6% 11% 9% 4% 7% 14% 15 Year CAGR 12.0% (1) UMB traditional peers (15 banks), as of latest available annual period. Source: S&P Global Market Intelligence; (2) Excludes PPP balances for ’20 – ’22. Annual Deposit Growth 0.32% 15 Year CAGR 11.0% Average Loans Annual Loan Growth 12% 19% 9% 7% 5% 2% 6% 10% 10% 18% 12% 21% 19% 9% 7% 10%

Slide 12

Differentiated Revenue Profile Multiple Sources of Growth Net Interest Income Fee Income Provides Diversity Dollars in millions. 29% 55% 38% $ 1,282.7 $1,291.4 $1,468.0 $613.2 $521.5 $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 7.1% Revenue Growth Annual NII Growth Annual Revenue Growth 12% 12% 7% 18% 10% 3% 2% 1% 9% 4% 5% 18% 20% 13% 9% 10% -1% 14% 10% 13% 4% 9% 9% 6% 18% 6% 3% 4% 11% 1% 3% 8% (1) Fee income prior to 2017 contains income from discontinued operations; (2) UMB traditional peers (15 banks) as of latest available annual period. Source: S&P Global Market Intelligence. Net Interest Income (before provision) Noninterest Income (1) % fee income Peer Median % Fee Income (2) 15 Year CAGR 9.5% 15 Year CAGR 4.4% Fee Income Growth $ 815.5 $731.2 $913.8 $303.0 $232.7 $317.0 $275.1 $320.1 $310.6 $333.3 $412.1 $558.9 $350.1 $610.4 $495.3 $670.9 23%

Slide 13

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 traditional peers (15 banks), as of latest available annual period. Source: S&P Global Market Intelligence; (2) All FDIC-insured banks. Source: FDIC. 0.21% 0.09% 15 Year Average 0.30% 15 Year Average 0.44%

Slide 14

Risk-Adjusted Returns Rowing Close to Shore UMBF Peer Median (1) (1) UMB traditional peers (15 banks), data as of latest available annual period. Source: S&P Global Market Intelligence. UMBF Peer Median (1) Risk-Weighted Assets / Assets Return on Risk-Weighted Assets

Slide 15

Dividend Trends Sustained Growth (1) Dividends adjusted for 2-for-1 stock split in 2006. Annual Dividends Declared (1) +282.5% 2003 - 2023 2023 = $1.53 +2.7% vs. 2022

Slide 16

Outperformance Building Long-Term Value 15-Year Compounded Annual Growth Rates 2007 – 2022 UMBF KRX* Industry*** Peer Median** Diluted Earnings Per Share Tangible Book Value Per Share (1) *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 2007 and 2022. (1) Non-GAAP measure. See reconciliation on slide 52. Source: KRX, Peer and Industry data from S&P Global Market Intelligence.

Slide 17

3rd Quarter 2023 Financial Review

Slide 18

(1) Net gains/losses on any disposition or impairment of debt securities plus mark-to-market valuations of equity investments; (2) Non-GAAP measure. See reconciliation on slide 48.(3) Non-GAAP measure. See reconciliation on slide 49. 3Q 2023 Results At-A-Glance 3Q ’22 2Q ’23 3Q ’23 Linked-Quarter Variance & Commentary $ millions, except per share amounts.

Slide 19

3Q 2023 Earnings Highlights Operating PTPP Income (1) $126.6 $131.2 $134.1 $135.4 $127.9 Diluted EPS Net Income Net Income $90.1 $96.6 $88.0 $100.2 $92.4 Dollars in millions, except per share amounts. (1) Operating pre-tax, pre-provision income is a non-GAAP metric. See reconciliation on slide 49; (2) Net gains/losses on any disposition or impairment of debt securities plus mark-to-market valuations of equity investments. Operating PTPP Income – gains/losses on inv. securities (2) Operating PTPP Income, ex. gains/losses on inv. securities

Slide 20

Revenue Trends Dollars in millions. Columns may not sum due to rounding differences. 3Q ’22 4Q ’22 1Q ’23 2Q ’23 3Q ’23 Linked-Qtr. Variance $ ∆ % ∆

Slide 21

Net Interest Income $1.8B $1.5B $1.8B $2.0B $3.0B Asset Yield and Liability Cost Trends Liquidity Trends NIM Spread Net Interest Income $222.3 $245.2 $241.7 4.3% 5.1% 5.4% 7.8% 5.0% $233.5 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

Slide 22

Noninterest Income Current Quarter Drivers Fee Income / Revenue Peer Median Fee Income / Revenue (1) Dollars in millions. (1) UMB traditional peers (15 banks), data as of latest available quarter. Source: S&P Global Market Intelligence. Investment Securities Gains (Losses) Brokerage Fees Trust / Securities Processing Bankcard Fees Trading / Invest. Banking Other Income Deposit Svc. Charges. $133.3 $128.7 $125.5 $130.2 $138.1 LQ Variance Noninterest income decreased $4.8mm or 3.5%, vs. 2Q’23. Primary drivers: A decrease of $8.4mm in other income related to the $4mm gain on the sale of assets in 2Q’23, along with decreases of $3.5mm in COLI income and $0.9mm in derivative income; and A decrease of $1.0mm in trading and investment banking due to decreased trading volume. These decreases were partially offset by a $5.1mm, or 8.2%, increase in trust & securities processing income, as shown below. COLI income was -$0.4mm in 3Q’23, $3.1mm in 2Q’23 and $2.3mm in 3Q’22. Composition / Changes in Inv. Securities Gains (Losses) and Trust & Securities Processing

Slide 23

Noninterest Expense Current Quarter Drivers (1) Columns may not sum due to rounding differences.. Noninterest expense decreased $9.2mm or 3.8%, vs. 2Q’23. Primary drivers: A decrease of $9.9mm in salaries and benefits expense, which included A decrease of $2.8mm in deferred compensation expense (related to the decreased COLI income); $2.5mm of lower severance expense; A $1.6mm decrease in salaries and wages; and A $1.3mm reduction in other employee benefits costs. These decreases were partially offset by an increase of $1.3mm in operational losses compared to 2Q’23. Deferred compensation expense was $0.4mm in 3Q’23, $3.2mm in 2Q’23 and $2.3mm in 3Q’22. 3Q ’22 4Q ’22 1Q ’23 2Q ’23 3Q ’23 Linked-Qtr. Variance $ ∆ % ∆ $ in millions

Slide 24

$21,272 $ 22,192 $ 22,751 $ 19,284 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 $ 20,295 Loans by Region Kansas City 32% Colorado 17% Arizona 10% St. Louis 16% Greater MO 5% KS - 2% Texas 11% NE - 2% OK - 1% UT - 3% MN - 1% 3Q ’22 2Q ’23 3Q ’23 Linked-Qtr. Variance $ ∆ % ∆

Slide 25

Quarterly Loan Activity (1) Payoffs and paydowns include C&I and CRE loans. (1) (1) 3Q ’22 4Q ’22 1Q ’23 2Q ’23 3Q ’23

Slide 26

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 ($0.1)

Slide 27

Detailed Net Charge-Off History (1) Loan categories updated in 2020 with adoption of ASU 2016-13. In prior periods, NCOs for “Commercial” included C&I, commercial card, ABL and factoring loans. NCOs for “Other” included consumer cards, all real-estate loans, consumer loans and DDA. Historical Recent Trends

Slide 28

High-Quality Investment Portfolio $6,537 $7,566 $6,999 $6,963 $5,766 $5,785 $5,872 $5,872 $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

Slide 29

(1) Cash flow and purchase activity and HTM duration includes AFS and the portion of the HTM portfolio managed by the Corporate Treasury team; excludes industrial revenue bonds held-to-maturity; (2) Purchases made for roll-off and overbuy; net of purchases related to sales/trades. (3) Columns and rows may not sum due to rounding differences. Securities Portfolio Statistics Amortized Cost Fair Value Net Unrealized Loss (3) Balances as of September 30, 2023; $ in millions Securities Portfolio Activity (1) $ in millions

Slide 30

Deposits by Line of Business Diversified Deposit Mix $31,330 $31,374 $31,562 $31,475 Commercial Personal Institutional Commercial Banking 38% Consumer & Private Wealth 20% Capital Markets & Corp. Trust 14% Healthcare Services 9% Fund Services 6% Investor Solutions 7% 38% 33% 32% 42% 40% Average balances in millions. $29,797 Interest-Bearing Demand & Savings Demand Deposits Time Deposits Avg. Total Deposit Cost DDA / total deposits Brokered 6% 3Q ’22 2Q ’23 3Q ’23 Linked-Qtr. Variance $ ∆ % ∆

Slide 31

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 – Static Balance Sheet Shock Scenario – Static Balance Sheet 63% of total end-of-period loans, or $14.4B, are variable. 71% of total loans reprice within the next 12 months. Of variable loans - % tied to indices for next 12 months: 70% - SOFR 25% - Prime 5% - other Loan Maturities & Repricing Year 2 Year 1 Year 2 Year 1

Slide 32

Ample Liquidity Strong Capital Liquidity & Capital Position (1) Estimated uninsured deposits to be reported io schedule RC-O in 09/30/23 Call Report. (2) Estimated uninsured deposits adjusted for deposits of wholly owned subsidiaries of UMBFC and public funds or corporate trust deposits collateralized by high quality investment securities. See reconciliation on slide 47; (3) Non-GAAP measure. See reconciliation on slide 50. 5.00% 10.00% 6.50% UMBF ratio Regulatory Minimum CET 1 Total Capital Tier 1 Leverage Regulatory Capital Ratios 12.68% 10.77% 8.55% Tangible Common Equity Ratio (3) 6.13% Tangible Common Equity Ratio, ex. AOCI (3) 8.06% Total Equity / Total Assets 6.77% Available Liquidity Sources $ millions 5.11% 5.00% 5.11% Weighted average rate $2,224 $1,900 $375 Brokered CDs FHLB Advances Bank Term Funding Program As of September 30, 2023 $ billions Wholesale Funding by Maturity * Sources include Fed discount window, FHLB advances, Fed funds purchased, free bond collateral, cash sweep and cash/due from banks (including Fed account)

Slide 33

Line of Business Updates

Slide 34

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 30% Sm./Med Biz 5% Specialized Verticals 12% $19.2B Average balance for 3Q’23, excludes credit card. (1) Rank among U.S. Visa & Mastercard Commercial Card Issuers, Source: Nilson Report, ‘22; (2) “Production ag lending” per ABA 2Q 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 35

Commercial Banking C&I Lending Commercial & Industrial Statistics C&I Industries as % of 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 C&I Balance Trends Transp. / Warehouse Diversified Tech. & Telecom Materials & Commodities Manu-facturing Retail Healthcare Commercial Services Other (2) Agri-business Finance & Insurance 9% Energy-Related 5% Total C&I Loans $10.1B 44.0% of total UMB loans (1) End-of-period balances as of September 30, 2023. Average Line Utilization Trends (2) Other - 4% of UMB loans Food & Beverage Auto-related Entertainment / Recreation Consumer Services Apparel / Textiles Government / Education Portfolio Mgmt.–3% Inv. Banking–2% Leasing–1% Other Financial-3% RE & Construction 6% Comml. Lessors–1% Land/Subdivision.–1% Varied Construction Services– 4% Petroleum–2% Nat. Gas–1% Other Energy–2% +11% YoY $ billions

Slide 36

Commercial Banking Commercial Real Estate Commercial Real Estate Statistics Investment CRE as % of UMB Loans (1) Const. / Land Dev. 10% Owner-Occupied 9% Investment CRE 16% $8.8B Farmland 2% as of Sept. 30, 2023 1-4 Unit Residential Construction < 1% of total UMB loans Retail Multifamily Office Building Hotel Industrial Sr. Living Mixed Use Vacant Land Other (4) (1) End-of-period balances as of September 30, 2023; (2) Adjusting for customer interest rate swaps on variable rate exposure, “fixed” rate exposure would be approximately 44% and variable rate exposure would be approximately 56%; (3) Tier 1 capital plus an adjusted ACL, per regulatory guidelines. (4) Other - 2% of UMB loans Residential Rental Student Housing Homebuilder for Sale Healthcare Special Purpose Self-storage Manufactured Housing Investment CRE & Construction Portfolio Average Loan-to-Value: 58% Recourse: 89% Investment CRE Rate Type: (2) Fixed – 31% Variable – 69% Total CRE & Construction = 38% 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: Fixed – 42% Variable – 58% Regulatory Concentrations (3) Total non-farmland CRE / Total RBC: 185% Construction & Development / Total RBC: 67% Total Inv. CRE & Construction Loans $6.0B 26.2% of total UMB loans

Slide 37

Investment Real Estate Select Property Details Average Loan: $8.9mm Average LTV: 64% Recourse: 82% Geographic Diversity – By Property Location By outstanding balances as of September 30, 2023 Average Loan-to-Value, Select Industries Total Investment CRE Portfolio Office CRE Portfolio (No state > 3%) MSA Diversification Statistics Market Type $1,031 mm Suburban Central Business District Medical $ millions Industrial: 61% Multifamily: 54% Retail: 55% Hotel: 50% Vacant Land: 54% Senior Living: 67% Mixed Use: 52%

Slide 38

Personal Banking Consumer Metrics at, or for the quarter ended, 09/30/23. (1) Includes residential real estate and other consumer loans; (2) 2022 Net Promoter Score for 16 financial services companies - Medallia, Inc. Strategic & Stable Source of Low-Cost Funds +13% YoY $3.1B Total Average Loans Consumer plays a strategic role for UMB as a large and stable source of deposits. Poised for continued asset growth -2% YoY $6.1B Total Average Deposits Growth engine for new customers; deepening existing relationships NPS Score 72.0 UMBF Industry Average (2) 54.2 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 Program to Date (Jan ‘22 – 3Q ‘23): 4,000+ Applications Down payment assistance Community Development 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 91 Banking Centers 240 ATMs Digital Capabilities across Consumer 26 $1.8B Private Bankers Across 9 regions Avg. Private Banking Deposits Avg. Mortgage Balances +15% YoY Expand diversity of client engagement in communities served Digital loan and deposit application and originations Mobile Banking: Deposits, transfers, bill pay, acct review & more $6.5mm 19 Financial Education Classes 17 Community Partners Served 468 Community Participants

Slide 39

Personal Banking Private Wealth Management Composition as of 09/30/23. (1) Includes AUM and AUA. Personal Trust 21% Investment Advisory 40% Non-Managed AUA 25% IRAs 5% 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 New Assets / Sales (1) $11.7B Managed Assets (AUM) $3.8B Non-Managed Assets (AUA) $653mm YTD ’23 New Assets $639mm $694mm $836mm $1.4B 2019 2020 2021 2022

Slide 40

Institutional Banking Fund Services & Institutional Custody Best Interval Fund Administrator (1) Best Administrator – Technology (2) $352B $379B $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 – 2021 & 2022 (6) Net New Accounts YTD Custody AUA +30% YoY +269 $363B (1) With Intelligence ’19, ’20, ‘22 & ‘23 Awards; (2) Hedgeweek US Awards ’20 - ’22; (3) PE Wire ’21 & ‘22; (4) HFM Services Awards ’21 & ’22; (5) Hedgeweek Emerging Managers Awards ‘23 (6) Global Custodian Fund Admin Survey ’22. Best Administrator – GPs w/assets <$30B (3)   Assets Under Administration Industry Leader in Client Service (4)   Registered Funds & Alternative Investments Institutional Custody Transfer Agency Alternative Servicing Fund Acct/Admin. Custody Best Fund Accounting & Reporting Software (5)   Note: Asset categories sum > total AUA due to shared client assets.

Slide 41

Institutional Banking Corp/Specialty Trust & Capital Markets (1)Thomson Reuters municipal rankings, June ‘23; (2) Ranked by number of issues; (3) M&A Advisor – ’22; (4) Debtwire – ranking ’21. Corporate Trust & Escrow Services Provides trustee, paying agent and escrow services to municipal and corporate issuers. $31B Assets Under Administration Paying Agent in U.S. (1) (2) #2 Municipal Trustee in U.S. (1) (2) #5 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. +$453mm Examples of recent deals: Products and services offered through UMB Bank Capital Markets Division NOT FDIC INSURED | MAY LOSE VALUE  | NOT BANK GUARANTEED. Pflugerville ISD, TX $288.9M Tax School Building Bonds Series 2023 Co-Managing Underwriter Pecos-Barstow-Toyah ISD, TX New Braunfels, TX $38.0M GO & Refunding Bonds Series 2023 Senior Manager Capital Markets Division Capital solutions including fixed income sales, trading and underwriting for institutional, municipal and not-for-profit organizations. Public Finance 126 Closed Deals YTD vs. 110 YTD ‘22 2019 62 2020 84 2021 119 2022 142 $35.9M Tax School Building Bonds Series 2019B Sole Remarketing Agent #1 Agent for Debtor-in-Possession financing (4) Winner – Turnaround Award for Divestiture of the Year (3) Growth in on-balance sheet deposits +24% vs. 3Q’22 Closed Deals Expanded capabilities in serving community banks. New Vertical: Reinsurance Trust Services $919mm AUA Acquisition of Hybarger & Assoc. June 2023

Slide 42

FDIC Sweep Assets Under Administration $54B 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 $3.3B Top 10 HSA Custodians in the U.S. (2) TOP 10 Benefit Cards 5.1mm ~75mm ~ 5.4 mm accounts Recognized for Investment Quality (1) Sample Fintech Partnerships Named a Top HSA for Features & Investment Options (1) (1) Investor’s Business Daily ‘21; (2) #8 by both total accounts and total assets - Devenir Research Mid-Year ‘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 2022. Card Purchase Volume & Interchange Trends 3Q ’23 Card Spend $4.0B 24th in U.S. Credit Card Purchase Volume (2) #24 $4,009 $3,708 $4,079 $4,020 $3,680 Interchange Income Consumer Credit Healthcare Debit Commercial Credit Inst. Cash Mgmt. Consumer Debit

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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 CEO, UMB Bank, n.a.

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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 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, our 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 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.

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Additional Information Estimated Uninsured Deposit Analysis Our Peer Group (1) Estimated uninsured deposits to be reported on schedule RC-O in 09/30/23 Call Report; (2) Accounts of wholly-owned subsidiaries of UMBFC (3) Public funds or corp. trust deposits collateralized by high quality securities in UMB’s investment portfolio; (4) Columns may not sum due to rounding differences. (5) Total deposits as of September 30, 2023. $ billions

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Non-GAAP Reconciliations (unaudited, dollars in thousands except per share data) 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. Net operating income is defined as GAAP net income, adjusted to exclude expenses related to acquisitions, severance expense 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, and severance expense. Tangible book value per share is defined as total shareholders’ equity, net of intangible assets, divided by total shares outstanding. Tangible common equity ratio is calculated as total shareholders’ equity, net of intangible assets, divided by total assets, net of intangible assets. Tangible common equity ratio, excluding accumulated other comprehensive income (“AOCI”), is calculated as total shareholders’ equity, net of intangible assets and less AOCI, divided by total assets, net of intangible assets. 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, excluding AOCI is calculated as net operating income, divided by the company’s average tangible shareholders’ equity exclusive of AOCI for the relevant period. Net Operating Income

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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 expense.

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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. Tangible common equity ratio, excluding accumulated other comprehensive income (“AOCI”), is calculated as total shareholders’ equity, net of intangible assets and less AOCI, divided by total assets, net of intangible assets. Non-GAAP Reconciliations Tangible Common Equity Ratio & Tangible Common Equity Ratio, ex. AOCI (unaudited, dollars in thousands)

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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, excluding AOCI is calculated as net operating income, divided by the company’s average tangible shareholders’ equity exclusive of AOCI for the relevant period. Operating Return on Tangible Common Equity, Excluding AOCI Return on Tangible Common Equity (unaudited, dollars in thousands)

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Non-GAAP Reconciliations Tangible book value per share is defined as total shareholders’ equity, net of intangible assets, divided by total shares outstanding. Tangible Book Value (unaudited, dollars in thousands except per share data)

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