umbf-8k_20210727.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): 7/27/2021

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 2.02Results of Operations and Financial Condition

On July 27, 2021, UMB Financial Corporation (the “Company”) issued a press release announcing the financial results for the Company for the quarter and period ended June 30, 2021. A copy of the press release is attached as Exhibit 99.1 and the information is hereby incorporated by reference herein.

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

Item 7.01 Regulation FD Disclosure

On July 27, 2021, the Company announced in the same press release that the Board of Directors of the Company (“the Board”) had declared a quarterly dividend of $0.37 per share that is payable on October 1, 2021 to shareholders of record of the Company as of the close of business on September 10, 2021.

The Company is furnishing a copy of materials that will be used in the Company’s shareholder conference call at 8:30 a.m. (CT) on July 28, 2021. A copy of the materials is attached as Exhibit 99.2 and will be available on the Company’s website at www.umb.com. The materials are dated July 27, 2021, 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.

Item 9.01 Financial Statements and Exhibits


99.1	Press Release announcing financial results for quarter and period ended June 30, 2021, and announcing dividend declaration.
99.2	Investor Presentation Materials, dated July 27, 2021.
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 Chief Financial Officer

Date: July 27, 2021

Exhibit 99.1

UMB Financial Corporation News Release

1010 Grand Boulevard

Kansas City, MO 64106

816.860.7000

umb.com

//FOR IMMEDIATE RELEASE//

Media Contact: Stephanie Hague: 816.860.5088

Investor Relations Contact: Kay Gregory: 816.860.7106

UMB Financial Corporation Reports Second Quarter Net Income of $87.4 Million; Announces 15.6% Increase to Quarterly Cash Dividend

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

•

GAAP net income of $87.4 million, or $1.79 per diluted share; net operating income of $87.6 million, or $1.80 per diluted share.

•

Pre-tax, pre-provision (PTPP) income of $131.3 million, an increase of $41.2 million.

•

Quarterly average loan balances increased $1.7 billion, or 11.4%.

•

Excluding Paycheck Protection Program (PPP) balances, average loans increased 19.0% on a linked-quarter, annualized basis.

•

Quarterly average deposits grew 22.0% to $27.8 billion.

•

Noninterest income increased 9.2% and comprised 39.6% of revenue.

•

Board of Directors increased quarterly cash dividend by 15.6% to $0.37 per share.

KANSAS CITY, Mo. (July 27, 2021) – UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the second quarter of 2021 of $87.4 million, or $1.79 per diluted share, compared to $92.6 million, or $1.91 per diluted share, in the first quarter of 2021 (linked quarter) and $60.5 million, or $1.26 per diluted share, in the second quarter of 2020.

Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $87.6 million, or $1.80 per diluted share, for the second quarter of 2021, compared to $92.8 million, or $1.91 per diluted share, for the linked quarter and $63.8 million, or $1.33 per diluted share, for the second quarter of 2020. Pre-tax, pre-provision income on a fully tax equivalent basis (PTPP-FTE), a non-GAAP measure reconciled to the components of net income before taxes, the nearest comparable GAAP measure, later in this release, was $138.0 million, or $2.83 per diluted share, for the second quarter of 2021, compared to $108.7 million, or $2.24 per diluted share, for the linked quarter, and $96.8 million, or $2.01 per diluted share, for the second quarter of 2020. These PTPP-FTE results represent an increase of 26.9% on a linked-quarter basis and an increase of 42.6% compared to the second quarter of 2020.

Summary of quarterly financial results	UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
	Q2			Q1			Q2
	2021			2021			2020
Net income (GAAP)	$	87,412		$	92,643		$	60,529
Earnings per share (diluted)		1.79			1.91			1.26

Pre-tax, pre-provision income (Non-GAAP)		131,322			102,066			90,152
Pre-tax, pre-provision earnings per share (diluted)		2.70			2.10			1.88

Pre-tax, pre-provision income - FTE (Non-GAAP)		137,951			108,744			96,756
Pre-tax, pre-provision earnings per share - FTE (diluted)		2.83			2.24			2.01

Net operating income (Non-GAAP)		87,634			92,780			63,835
Operating earnings per share (diluted)		1.80			1.91			1.33

GAAP
Return on average assets		1.02	%		1.14	%		0.87	%
Return on average equity		11.43			12.56			8.95
Efficiency ratio		60.41			66.46			70.20

Non-GAAP
Operating return on average assets		1.03	%		1.14	%		0.91	%
Operating return on average equity		11.46			12.58			9.44
Operating efficiency ratio		60.33			66.40			68.76

Summary of year-to-date financial results	UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)	June			June
	YTD			YTD
	2021			2020
Net income (GAAP)	$	180,055		$	57,090
Earnings per share (diluted)		3.70			1.18

Pre-tax, pre-provision income (Non-GAAP)		233,388			173,898
Pre-tax, pre-provision earnings per share (diluted)		4.80			3.59

Pre-tax, pre-provision income - FTE (Non-GAAP)		246,695			186,980
Pre-tax, pre-provision earnings per share - FTE (diluted)		5.08			3.86

Net operating income (Non-GAAP)		180,414			61,954
Operating earnings per share (diluted)		3.71			1.28

GAAP
Return on average assets		1.08	%		0.42	%
Return on average equity		11.98			4.22
Efficiency ratio		63.29			69.59

Non-GAAP
Operating return on average assets		1.08	%		0.46	%
Operating return on average equity		12.01			4.58
Operating efficiency ratio		63.21			68.49

“Our strong second quarter results demonstrated the benefits of our diverse business model and validates our investment thesis which includes above-peer loan growth, continued net interest income and strong fee income growth across all operating and interest rate environments,” said Mariner Kemper, chairman,

president and chief executive officer. “During the second quarter, average loans, excluding PPP balances, increased 19.0% annualized on a linked-quarter basis. Noninterest income increased 20.8% from the prior quarter and 9.2% over the year-ago period. Our $24.0 million provision was higher than previous levels due to strong loan growth and elevated net charge-offs related to one commercial factoring relationship. Excluding this credit event, we would have had net recoveries in the quarter and the underlying asset quality of our loan portfolio remains strong. Nonperforming loan balances declined 24.1% from prior quarter-end. During the quarter, we monetized 3.5 million shares of our Tattooed Chef, Inc. (TTCF) holdings for net proceeds of approximately $72.8 million. Finally, we are excited to announce that our Board of Directors approved a five cent or 15.6% increase in the quarterly cash dividend to our shareholders.”

Summary of revenue	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q2			Q1			Q2			CQ vs.			CQ vs.
	2021			2021			2020			LQ			PY
Net interest income	$	201,071		$	194,115		$	178,229		$	6,956		$	22,842
Noninterest income:
Trust and securities processing		53,863			54,834			46,321			(971	)		7,542
Trading and investment banking		8,670			9,356			12,851			(686	)		(4,181	)
Service charges on deposit accounts		22,592			21,976			19,074			616			3,518
Insurance fees and commissions		245			420			533			(175	)		(288	)
Brokerage fees		2,592			3,334			5,753			(742	)		(3,161	)
Bankcard fees		16,063			14,673			12,916			1,390			3,147
Investment securities gains (losses), net		15,455			(8,336	)		4,579			23,791			10,876
Other		12,109			12,640			18,429			(531	)		(6,320	)
Total noninterest income	$	131,589		$	108,897		$	120,456		$	22,692		$	11,133
Total revenue	$	332,660		$	303,012		$	298,685		$	29,648		$	33,975
Net interest income (FTE)	$	207,700		$	200,793		$	184,833
Net interest margin (FTE)		2.56	%		2.59	%		2.79	%
Total noninterest income as a % of total revenue		39.56			35.94			40.33

Net interest income

•

Net interest income totaled $201.1 million, which is an increase of $7.0 million as compared to the linked quarter. The positive impact from strong balance sheet growth was partially offset by the impacts of lower PPP income in the quarter. Average earning assets increased $1.1 billion, or 3.6%, driven in part by an increase in securities and loans, while interest-bearing liabilities increased $234.5 million, or 1.2%.

•

Net interest margin for the second quarter was 2.56%, a decrease of three basis points from the linked quarter, driven in large part by earning asset mix shift and lower market and reinvestment rates. Earning asset yields declined four basis points from the linked quarter, driven by a six-basis-point decline in both loan and securities yields and mix changes. The cost of interest-bearing liabilities decreased one basis point to 0.23%. Net interest spread decreased three basis points to 2.47% from the linked quarter and was 20 basis points lower than the second quarter of 2020.

•

On a year-over-year basis, net interest income increased $22.8 million, or 12.8%, driven by a $2.1 billion, or 23.0% increase in average securities, coupled with a $1.7 billion, or 11.4%, increase in average loans. These increases were driven by organic loan growth, excess liquidity, and the company’s PPP participation.

•

Average deposits increased 3.6% on a linked-quarter basis and 22.0% compared to the second quarter of 2020. Average noninterest-bearing demand deposit balances increased 9.7% on a linked-quarter basis and 39.7% compared to the second quarter of 2020.

Noninterest income

•

Second quarter 2021 noninterest income increased $22.7 million, or 20.8%, on a linked-quarter basis, largely due to:

An increase of $23.8 million in investment securities gains, primarily due to an increase of $23.3 million in gains on the company’s equity investment in TTCF.

An increase of $1.4 million in bankcard fees, primarily due to increased interchange income.

These increases were partially offset by decreases of $1.0 million in trust and securities processing income and $0.7 million in trading and investment banking income. The decrease in trust and securities processing income is primarily driven by the previously announced sale of Prairie Capital Management, LLC (PCM) in March 2021, offset by increased fund services income. The decline in trading and investment banking income is primarily due to decreased trading volume.

•

Compared to the prior year, noninterest income in the second quarter of 2021 increased $11.1 million, or 9.2%, primarily driven by:

An increase of $10.9 million in investment securities gains, primarily due to an increase of $14.2 million in gains on equity investments, partially offset by decreases of $2.7 million and $0.6 million in gains on the sale of available for sale securities and PCM-related equity earnings on alternative investments, respectively.

Increases of $6.7 million and $2.0 million in fund services income and corporate trust income, respectively, both recorded in trust and securities processing.

An increase of $3.5 million in service charges on deposits, driven by increased healthcare income related to customer transfer and conversion fees, and increased corporate service charges.

An increase of $2.5 million in derivative income, recorded in other income.

These increases were partially offset by a decrease of $9.8 million in the market value of company-owned life insurance, recorded in other income, and a decrease of $4.2 million in trading and investment banking, due to decreased trading volumes. The decrease in company-owned life insurance is 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)
	Q2		Q1		Q2		CQ vs.			CQ vs.
	2021		2021		2020		LQ			PY
Salaries and employee benefits	$	120,415	$	127,681	$	130,938	$	(7,266	)	$	(10,523	)
Occupancy, net		12,296		11,935		11,411		361			885
Equipment		19,196		19,615		21,502		(419	)		(2,306	)
Supplies and services		3,469		3,492		3,785		(23	)		(316	)
Marketing and business development		4,797		2,345		3,284		2,452			1,513
Processing fees		16,501		15,417		13,603		1,084			2,898
Legal and consulting		8,147		5,755		6,220		2,392			1,927
Bankcard		4,529		4,956		4,549		(427	)		(20	)
Amortization of other intangible assets		1,157		1,380		1,658		(223	)		(501	)
Regulatory fees		2,769		2,546		3,211		223			(442	)
Other		8,062		5,824		8,372		2,238			(310	)
Total noninterest expense	$	201,338	$	200,946	$	208,533	$	392		$	(7,195	)

•

Noninterest expense for the second quarter of 2021 was $201.3 million, an increase of $0.4 million, or 0.2%, from the linked quarter and a decrease of $7.2 million, or 3.5%, from the second quarter of 2020.

•

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

Increases of $2.5 million, $2.4 million, and $1.1 million in marketing and business development expense, legal and consulting expense, and processing fees, respectively, due to timing of various marketing initiatives, legal costs, and timing of software projects.

Increases of $0.9 million in losses on sales of other real estate, $0.7 million in derivative expense, and $0.7 million in miscellaneous loan fee expense, all recorded in other noninterest expense.

These increases were offset by decreases of $5.7 million in payroll taxes, insurance and 401(k) expense, and $1.8 million in bonus and commission expense, both recorded in salary and employee benefits.

•

The year-over-year decrease in noninterest expense was driven by:

A decrease of $10.5 million in deferred compensation expense, recorded in salaries and employee benefits. The decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.

A decrease of $2.1 million in software expense, recorded in equipment expense.

These decreases were partially offset by increases of $2.9 million in processing fees, $1.9 million in legal and professional expense, and $1.5 million in marketing and business development, due to timing of software projects, legal costs, and various marketing initiatives.

Income taxes

•

The company’s effective tax rate was 17.0% for the six months ended June 30, 2021, compared to 11.3% for the same period in 2020. The increase in the effective rate for 2021 is primarily attributable to a smaller portion of income being earned from tax-exempt municipal securities.

Balance sheet

•

Average total assets for the second quarter of 2021 were $34.3 billion compared to $33.1 billion for the linked quarter and $28.1 billion for the same period in 2020.

Summary of average loans and leases - QTD Average					UMB Financial Corporation
(unaudited, dollars in thousands)
	Q2		Q1		Q2		CQ vs.			CQ vs.
	2021		2021		2020		LQ			PY
Commercial and industrial	$	7,402,653	$	7,139,101	$	6,970,223	$	263,552		$	432,430
Specialty lending		505,687		502,585		471,571		3,102			34,116
Commercial real estate		6,165,780		5,971,047		5,435,428		194,733			730,352
Consumer real estate		2,068,663		1,970,767		1,528,501		97,896			540,162
Consumer		122,439		117,095		146,120		5,344			(23,681	)
Credit cards		386,032		362,051		353,424		23,981			32,608
Leases and other		166,420		183,447		193,099		(17,027	)		(26,679	)
Total loans	$	16,817,674	$	16,246,093	$	15,098,366	$	571,581		$	1,719,308

•

Average loans for the second quarter of 2021 increased 3.5% on a linked-quarter basis and 11.4% compared to the second quarter of 2020 primarily due to increased commercial and industrial and commercial real estate loans.

Summary of average securities - QTD Average	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q2		Q1		Q2		CQ vs.			CQ vs.
	2021		2021		2020		LQ			PY
Securities available for sale:
U.S. Treasury	$	40,013	$	36,032	$	31,150	$	3,981		$	8,863
U.S. Agencies		94,794		95,494		403,290		(700	)		(308,496	)
Mortgage-backed		6,096,099		5,599,987		4,284,374		496,112			1,811,725
State and political subdivisions		3,565,443		3,552,945		3,108,661		12,498			456,782
Commercial Paper		—		—		2,040		—			(2,040	)
Corporates		127,581		83,271		98,089		44,310			29,492
Total securities available for sale	$	9,923,930	$	9,367,729	$	7,927,604	$	556,201		$	1,996,326
Securities held to maturity:
State and political subdivisions	$	1,057,091	$	1,023,418	$	1,100,843	$	33,673		$	(43,752	)
Trading securities		21,409		17,540		37,816		3,869			(16,407	)
Other securities		302,981		308,297		148,918		(5,316	)		154,063
Total securities	$	11,305,411	$	10,716,984	$	9,215,181	$	588,427		$	2,090,230

•

Average securities available for sale increased 5.9% on a linked-quarter basis and 25.2% compared to the second quarter of 2020.

Summary of average deposits - QTD Average				UMB Financial Corporation
(unaudited, dollars in thousands)
	Q2			Q1			Q2			CQ vs.			CQ vs.
	2021			2021			2020			LQ			PY
Deposits:
Noninterest-bearing demand	$	10,701,656		$	9,753,680		$	7,662,836		$	947,976		$	3,038,820
Interest-bearing demand and savings		16,421,742			16,302,880			14,160,722			118,862			2,261,020
Time deposits		659,228			769,464			957,007			(110,236	)		(297,779	)
Total deposits	$	27,782,626		$	26,826,024		$	22,780,565		$	956,602		$	5,002,061
Noninterest bearing deposits as % of total		38.52	%		36.36	%		33.64	%

•

Average deposits increased 3.6% on a linked-quarter basis and 22.0% compared to the second quarter of 2020.

•

Average noninterest-bearing demand deposits increased 9.7% on a linked-quarter basis to $10.7 billion.

Capital

Capital information	UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
	June 30, 2021			March 31, 2021			June 30, 2020
Total equity	$	3,090,244		$	2,958,239		$	2,777,395
Book value per common share		63.92			61.24			57.84
Tangible book value per common share		59.96			57.26			53.57

Regulatory capital:
Common equity Tier 1 capital	$	2,730,062		$	2,660,102		$	2,335,625
Tier 1 capital		2,730,062			2,660,102			2,335,625
Total capital		3,172,878			3,102,333			2,580,849

Regulatory capital ratios:
Common equity Tier 1 capital ratio		11.91	%		12.25	%		11.92	%
Tier 1 risk-based capital ratio		11.91			12.25			11.92
Total risk-based capital ratio		13.84			14.28			13.17
Tier 1 leverage ratio		8.00			8.08			8.35

•

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

Asset Quality

Credit quality	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q2			Q1			Q4			Q3			Q2
	2021			2021			2020			2020			2020
Net charge-offs - Total loans	$	28,374		$	5,310		$	1,801		$	5,111		$	5,541
Net loan charge-offs as a % of total average loans		0.68	%		0.13	%		0.04	%		0.13	%		0.15	%
Loans over 90 days past due	$	1,265		$	1,773		$	1,952		$	1,372		$	4,588
Loans over 90 days past due as a % of total loans		0.01	%		0.01	%		0.01	%		0.01	%		0.03	%
Nonaccrual and restructured loans	$	58,219		$	76,706		$	87,823		$	93,695		$	82,245
Nonaccrual and restructured loans as a % of total loans		0.34	%		0.46	%		0.55	%		0.59	%		0.54	%
Provision for credit losses	$	24,000		$	(7,500	)	$	5,000		$	16,000		$	21,500

•

Provision for credit losses for the second quarter increased $31.5 million from the linked quarter and $2.5 million from the second quarter of 2020. This increase is driven by impacts to the Allowance for Credit Losses by a large charge-off during the second quarter, offset by the impacts of positive macro-economic metrics.

•

Net charge-offs for the second quarter totaled $28.4 million, or 0.68%, of average loans, compared to $5.3 million, or 0.13%, of average loans in the linked quarter, and $5.5 million, or 0.15%, of average loans for the second quarter of 2020.

•

The increase in net charge-offs in the second quarter of 2021 is due to a $31.9 million loss on one commercial relationship.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors declared a $0.37 per share quarterly cash dividend, or an increase of 15.6%. This cash dividend will be payable on October 1, 2021, to shareholders of record at the close of business on September 10, 2021.

Conference Call

The company plans to host a conference call to discuss its second quarter 2021 earnings results on Wednesday, July 28, 2021, at 8:30 a.m. (CT).

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

UMB Financial 2Q 2021 Conference Call

A replay of the conference call may be heard through August 11, 2021 by calling (toll-free)

877-344-7529 or (international) 412-317-0088. The replay access code required for playback is 10157858. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial Information

In this release, we provide information about net operating income, operating earnings per share - diluted (operating EPS), operating return on average equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, operating efficiency ratio, pre-tax, pre-provision income, pre-tax, pre-provision earnings per share – diluted (PTPP EPS), pre-tax, pre-provision income on a fully tax equivalent basis (PTPP-FTE), pre-tax, pre-provision FTE earnings per share – diluted (PTPP-FTE EPS), tangible shareholders’ equity, and tangible book value per share, all of which are non-GAAP financial measures. This information supplements the results that are reported according to generally

accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from, or as a substitute for, GAAP results. The differences between the non-GAAP financial measures – net operating income, operating EPS, operating ROE, operating ROA, operating noninterest expense, operating efficiency ratio, PTPP, PTPP EPS, PTPP-FTE, PTPP-FTE EPS, tangible shareholders’ equity, and tangible book value per share – and 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-, severance-, and COVID-19 related items that management does not believe reflect the company’s fundamental operating performance. COVID-19 related expense includes hazard pay for branch associates, computer hardware expense to support associates working remotely, and additional equipment, cleaning, and janitorial supplies to protect the well-being of our associates and customers while on the company’s premises.

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

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

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

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

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

Forward-Looking Statements:

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

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

About UMB:

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

Consolidated Balance Sheets	UMB Financial Corporation
(unaudited, dollars in thousands)
	June 30,
	2021			2020
ASSETS
Loans	$	16,910,790		$	15,305,097
Allowance for credit losses on loans		(200,563	)		(200,300	)
Net loans		16,710,227			15,104,797
Loans held for sale		5,303			8,213
Securities:
Available for sale		10,347,531			8,483,624
Held to maturity, net of allowance for credit losses		1,081,173			1,111,625
Trading securities		40,552			51,383
Other securities		254,315			154,206
Total securities		11,723,571			9,800,838
Federal funds sold and resell agreements		1,146,521			1,347,643
Interest-bearing due from banks		5,059,098			1,714,478
Cash and due from banks		469,883			462,849
Premises and equipment, net		281,011			300,174
Accrued income		131,188			126,962
Goodwill		174,518			180,867
Other intangibles, net		16,636			24,181
Other assets		901,059			682,606
Total assets	$	36,619,015		$	29,753,608

LIABILITIES
Deposits:
Noninterest-bearing demand	$	12,513,031		$	8,633,603
Interest-bearing demand and savings		16,857,127			15,033,643
Time deposits under $250,000		430,713			546,089
Time deposits of $250,000 or more		247,600			246,069
Total deposits		30,048,471			24,459,404
Federal funds purchased and repurchase agreements		2,783,389			1,963,694
Short-term debt		—			15,000
Long-term debt		270,558			70,996
Accrued expenses and taxes		254,589			239,254
Other liabilities		171,764			227,865
Total liabilities		33,528,771			26,976,213

SHAREHOLDERS' EQUITY
Common stock		55,057			55,057
Capital surplus		1,098,139			1,081,713
Retained earnings		2,040,134			1,692,289
Accumulated other comprehensive income, net		223,107			284,262
Treasury stock		(326,193	)		(335,926	)
Total shareholders' equity		3,090,244			2,777,395
Total liabilities and shareholders' equity	$	36,619,015		$	29,753,608

Consolidated Statements of Income	UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
INTEREST INCOME
Loans	$	154,537	$	140,004	$	304,707	$	291,030
Securities:
Taxable interest		29,780		25,870		56,942		53,082
Tax-exempt interest		24,743		24,612		49,707		49,016
Total securities income		54,523		50,482		106,649		102,098
Federal funds and resell agreements		2,552		1,573		5,373		7,025
Interest-bearing due from banks		833		398		1,536		3,061
Trading securities		189		312		348		966
Total interest income		212,634		192,769		418,613		404,180
INTEREST EXPENSE
Deposits		6,574		11,243		13,372		40,975
Federal funds and repurchase agreements		1,779		1,950		3,665		8,331
Other		3,210		1,347		6,390		2,704
Total interest expense		11,563		14,540		23,427		52,010
Net interest income		201,071		178,229		395,186		352,170
Provision for credit losses		24,000		21,500		16,500		109,500
Net interest income after provision for credit losses		177,071		156,729		378,686		242,670
NONINTEREST INCOME
Trust and securities processing		53,863		46,321		108,697		93,321
Trading and investment banking		8,670		12,851		18,026		14,574
Service charges on deposit accounts		22,592		19,074		44,568		44,155
Insurance fees and commissions		245		533		665		792
Brokerage fees		2,592		5,753		5,926		15,613
Bankcard fees		16,063		12,916		30,736		29,461
Investment securities gains, net		15,455		4,579		7,119		8,099
Other		12,109		18,429		24,749		12,865
Total noninterest income		131,589		120,456		240,486		218,880
NONINTEREST EXPENSE
Salaries and employee benefits		120,415		130,938		248,096		241,998
Occupancy, net		12,296		11,411		24,231		23,591
Equipment		19,196		21,502		38,811		42,743
Supplies and services		3,469		3,785		6,961		7,970
Marketing and business development		4,797		3,284		7,142		7,924
Processing fees		16,501		13,603		31,918		26,993
Legal and consulting		8,147		6,220		13,902		12,330
Bankcard		4,529		4,549		9,485		9,409
Amortization of other intangible assets		1,157		1,658		2,537		3,392
Regulatory fees		2,769		3,211		5,315		5,577
Other		8,062		8,372		13,886		15,225
Total noninterest expense		201,338		208,533		402,284		397,152
Income before income taxes		107,322		68,652		216,888		64,398
Income tax expense		19,910		8,123		36,833		7,308
NET INCOME	$	87,412	$	60,529	$	180,055	$	57,090

PER SHARE DATA
Net income – basic	$	1.81	$	1.26	$	3.74	$	1.18
Net income – diluted		1.79		1.26		3.70		1.18
Dividends		0.32		0.31		0.64		0.62
Weighted average shares outstanding – basic		48,294,952		47,991,283		48,196,345		48,340,579
Weighted average shares outstanding – diluted		48,698,319		48,077,810		48,604,140		48,491,526

Consolidated Statements of Comprehensive Income	UMB Financial Corporation
(unaudited, dollars in thousands)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Net income	$	87,412		$	60,529		$	180,055		$	57,090
Other comprehensive income (loss), before tax:
Unrealized gains and losses on debt securities:
Change in unrealized holding gains and losses, net		76,335			84,885			(122,703	)		249,001
Less: Reclassification adjustment for gains included in net income		(1,300	)		(4,006	)		(4,020	)		(5,233	)
Change in unrealized gains and losses on debt securities		75,035			80,879			(126,723	)		243,768
Unrealized gains and losses on derivative hedges:
Change in unrealized gains and losses on derivative hedges, net		(3,422	)		4,612			3,081			19,137
Less: Reclassification adjustment for (gains) losses included in net income		(877	)		(514	)		(1,719	)		254
Change in unrealized gains and losses on derivative hedges		(4,299	)		4,098			1,362			19,391
Other comprehensive income (loss), before tax		70,736			84,977			(125,361	)		263,159
Income tax (expense) benefit		(16,826	)		(20,105	)		30,128			(62,077	)
Other comprehensive income (loss)		53,910			64,872			(95,233	)		201,082
Comprehensive income	$	141,322		$	125,401		$	84,822		$	258,172

Consolidated Statements of Shareholders' Equity			UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
	Common Stock		Capital Surplus			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
Balance - January 1, 2020	$	55,057	$	1,073,764		$	1,672,438		$	83,180		$	(277,999	)	$	2,606,440
Total comprehensive income		—		—			57,090			201,082			—			258,172
Dividends ($0.62 per share)		—		—			(30,200	)		—			—			(30,200	)
Purchase of treasury stock		—		615			—			—			(60,074	)		(59,459	)
Forfeitures of equity awards, net of issuances		—		676			—			—			(83	)		593
Recognition of equity-based compensation		—		6,109			—			—			—			6,109
Sale of treasury stock		—		120			—			—			201			321
Exercise of stock options		—		429			—			—			2,029			2,458
Cumulative effect adjustment		—		—			(7,039	)		—			—			(7,039	)
Balance - June 30, 2020	$	55,057	$	1,081,713		$	1,692,289		$	284,262		$	(335,926	)	$	2,777,395

Balance - January 1, 2021	$	55,057	$	1,090,450		$	1,891,246		$	318,340		$	(338,145	)	$	3,016,948
Total comprehensive income (loss)		—		—			180,055			(95,233	)		—			84,822
Dividends ($0.64 per share)		—		—			(31,167	)		—			—			(31,167	)
Purchase of treasury stock		—		—			—			—			(4,088	)		(4,088	)
Issuances of equity awards, net of forfeitures		—		(4,122	)		—			—			4,817			695
Recognition of equity-based compensation		—		8,609			—			—			—			8,609
Sale of treasury stock		—		148			—			—			153			301
Exercise of stock options		—		3,054			—			—			11,070			14,124
Balance - June 30, 2021	$	55,057	$	1,098,139		$	2,040,134		$	223,107		$	(326,193	)	$	3,090,244

Average Balances / Yields and Rates	UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
	Three Months Ended June 30,
	2021						2020
	Average			Average			Average			Average
	Balance			Yield/Rate			Balance			Yield/Rate
Assets
Loans, net of unearned interest	$	16,817,674			3.69	%	$	15,098,366			3.73	%
Securities:
Taxable		6,994,559			1.71			5,069,290			2.05
Tax-exempt		4,289,443			2.93			4,108,075			3.05
Total securities		11,284,002			2.17			9,177,365			2.50
Federal funds and resell agreements		1,110,433			0.92			807,245			0.78
Interest bearing due from banks		3,343,311			0.10			1,492,798			0.11
Trading securities		21,409			4.27			37,816			3.79
Total earning assets		32,576,829			2.70			26,613,590			3.01
Allowance for credit losses		(199,379	)					(195,373	)
Other assets		1,886,774						1,717,808
Total assets	$	34,264,224					$	28,136,025

Liabilities and Shareholders' Equity
Interest-bearing deposits	$	17,080,970			0.15	%	$	15,117,729			0.30	%
Federal funds and repurchase agreements		2,744,516			0.26			2,138,156			0.37
Borrowed funds		270,305			4.76			85,681			6.32
Total interest-bearing liabilities		20,095,791			0.23			17,341,566			0.34
Noninterest-bearing demand deposits		10,701,656						7,662,836
Other liabilities		398,319						411,964
Shareholders' equity		3,068,458						2,719,659
Total liabilities and shareholders' equity	$	34,264,224					$	28,136,025
Net interest spread					2.47	%					2.67	%
Net interest margin					2.56						2.79

Average Balances / Yields and Rates	UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
	Six Months Ended June 30,
	2021						2020
	Average			Average			Average			Average
	Balance			Yield/Rate			Balance			Yield/Rate
Assets
Loans, net of unearned interest	$	16,533,463			3.72	%	$	14,357,466			4.08	%
Securities:
Taxable		6,698,020			1.71			4,881,854			2.19
Tax-exempt		4,295,317			2.95			4,085,558			3.05
Total securities		10,993,337			2.20			8,967,412			2.58
Federal funds and resell agreements		1,375,689			0.79			1,015,720			1.39
Interest bearing due from banks		3,079,684			0.10			1,164,405			0.53
Trading securities		19,485			4.28			42,959			4.93
Total earning assets		32,001,658			2.72			25,547,962			3.28
Allowance for credit losses		(209,469	)					(154,062	)
Other assets		1,862,036						1,693,684
Total assets	$	33,654,225					$	27,087,584

Liabilities and Shareholders' Equity
Interest-bearing deposits	$	17,076,681			0.16	%	$	14,723,895			0.56	%
Federal funds and repurchase agreements		2,632,567			0.28			2,084,271			0.80
Borrowed funds		269,942			4.77			78,164			6.96
Total interest-bearing liabilities		19,979,190			0.24			16,886,330			0.62
Noninterest-bearing demand deposits		10,230,287						7,079,224
Other liabilities		414,535						401,724
Shareholders' equity		3,030,213						2,720,306
Total liabilities and shareholders' equity	$	33,654,225					$	27,087,584
Net interest spread					2.48	%					2.66	%
Net interest margin					2.57						2.88

Business Segment Information	UMB Financial Corporation
(unaudited, dollars in thousands)
	Three Months Ended June 30, 2021
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	135,656	$	21,258	$	44,157		$	201,071
Provision for credit losses		22,009		147		1,844			24,000
Noninterest income		36,391		68,745		26,453			131,589
Noninterest expense		69,144		72,575		59,619			201,338
Income before taxes		80,894		17,281		9,147			107,322
Income tax expense		15,007		3,206		1,697			19,910
Net income	$	65,887	$	14,075	$	7,450		$	87,412

	Three Months Ended June 30, 2020
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	113,095	$	28,124	$	37,010		$	178,229
Provision for credit losses		19,281		298		1,921			21,500
Noninterest income		24,078		66,488		29,890			120,456
Noninterest expense		62,123		76,953		69,457			208,533
Income (loss) before taxes		55,769		17,361		(4,478	)		68,652
Income tax expense (benefit)		6,597		2,055		(529	)		8,123
Net income (loss)	$	49,172	$	15,306	$	(3,949	)	$	60,529

	Six Months Ended June 30, 2021
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	268,687	$	43,397	$	83,102		$	395,186
Provision for credit losses		13,827		367		2,306			16,500
Noninterest income		43,777		137,166		59,543			240,486
Noninterest expense		134,789		143,857		123,638			402,284
Income before taxes		163,848		36,339		16,701			216,888
Income tax expense		27,825		6,171		2,837			36,833
Net income	$	136,023	$	30,168	$	13,864		$	180,055

	Six Months Ended June 30, 2020
	Commercial Banking		Institutional Banking		Personal Banking			Total
Net interest income	$	220,044	$	61,159	$	70,967		$	352,170
Provision for credit losses		101,501		573		7,426			109,500
Noninterest income		35,318		128,440		55,122			218,880
Noninterest expense		121,166		145,406		130,580			397,152
Income (loss) before taxes		32,695		43,620		(11,917	)		64,398
Income tax expense (benefit)		3,709		4,951		(1,352	)		7,308
Net income (loss)	$	28,986	$	38,669	$	(10,565	)	$	57,090

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

Non-GAAP Financial Measures

Net operating income Non-GAAP reconciliations:	UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Net income (GAAP)	$	87,412		$	60,529		$	180,055		$	57,090
Adjustments:
Acquisition expense		—			123			—			246
Severance expense		103			137			124			1,789
COVID-19 related expense		182			3,989			337			4,217
Tax-impact of adjustments (i)		(63	)		(943	)		(102	)		(1,388	)
Total Non-GAAP adjustments (net of tax)		222			3,306			359			4,864
Net operating income (Non-GAAP)	$	87,634		$	63,835		$	180,414		$	61,954

Earnings per share - diluted (GAAP)	$	1.79		$	1.26		$	3.70		$	1.18
Acquisition expense		—			—			—			0.01
Severance expense		—			0.01			—			0.04
COVID-19 related expense		0.01			0.08			0.01			0.08
Tax-impact of adjustments (i)		—			(0.02	)		—			(0.03	)
Operating earnings per share - diluted (Non-GAAP)	$	1.80		$	1.33		$	3.71		$	1.28

GAAP
Return on average assets		1.02	%		0.87	%		1.08	%		0.42	%
Return on average equity		11.43			8.95			11.98			4.22

Non-GAAP
Operating return on average assets		1.03	%		0.91	%		1.08	%		0.46	%
Operating return on average equity		11.46			9.44			12.01			4.58

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

Operating noninterest expense and operating efficiency ratio Non-GAAP reconciliations:	UMB Financial Corporation
(unaudited, dollars in thousands)
	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Noninterest expense	$	201,338		$	208,533		$	402,284		$	397,152
Adjustments to arrive at operating noninterest expense (pre-tax):
Acquisition expense		—			123			—			246
Severance expense		103			137			124			1,789
COVID-19 related expense		182			3,989			337			4,217
Total Non-GAAP adjustments (pre-tax)		285			4,249			461			6,252
Operating noninterest expense (Non-GAAP)	$	201,053		$	204,284		$	401,823		$	390,900

Noninterest expense	$	201,338		$	208,533		$	402,284		$	397,152
Less: Amortization of other intangibles		1,157			1,658			2,537			3,392
Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A)	$	200,181		$	206,875		$	399,747		$	393,760

Operating noninterest expense	$	201,053		$	204,284		$	401,823		$	390,900
Less: Amortization of other intangibles		1,157			1,658			2,537			3,392
Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B)	$	199,896		$	202,626		$	399,286		$	387,508

Net interest income	$	201,071		$	178,229		$	395,186		$	352,170
Noninterest income		131,589			120,456			240,486			218,880
Less: Gains on sales of securities available for sale, net		1,300			4,006			4,020			5,233
Total Non-GAAP Revenue (denominator A)	$	331,360		$	294,679		$	631,652		$	565,817

Efficiency ratio (numerator A/denominator A)		60.41	%		70.20	%		63.29	%		69.59	%
Operating efficiency ratio (Non-GAAP) (numerator B/denominator A)		60.33			68.76			63.21			68.49

Pre-tax, pre-provision income non-GAAP reconciliations:	UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net income before taxes (GAAP)	$	107,322	$	68,652	$	216,888	$	64,398
Adjustments:
Provision for credit losses		24,000		21,500		16,500		109,500
Pre-tax, pre-provision income (Non-GAAP)	$	131,322	$	90,152	$	233,388	$	173,898

Pre-tax earnings per share - diluted (GAAP)	$	2.20	$	1.43	$	4.46	$	1.33
Provision for credit losses		0.50		0.45		0.34		2.26
Pre-tax, pre-provision earnings per share - diluted (Non-GAAP)	$	2.70	$	1.88	$	4.80	$	3.59

Pre-tax, pre-provision income - FTE Non-GAAP reconciliations:	UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net interest income	$	201,071	$	178,229	$	395,186	$	352,170
Adjustments to arrive at net interest income - FTE:
Tax equivalent interest		6,629		6,604		13,307		13,082
Net interest income - FTE	$	207,700	$	184,833	$	408,493	$	365,252
Noninterest income		131,589		120,456		240,486		218,880
Less: Noninterest expense		201,338		208,533		402,284		397,152
Pre-tax, pre-provision income - FTE (Non-GAAP)	$	137,951	$	96,756	$	246,695	$	186,980

Net interest income earnings per share - diluted	$	4.13	$	3.71	$	8.13	$	7.26
Tax equivalent interest		0.13		0.14		0.28		0.27
Net interest income - FTE		4.26		3.85		8.41		7.53
Noninterest income		2.70		2.50		4.95		4.52
Less: Noninterest expense		4.13		4.34		8.28		8.19
Pre-tax, pre-provision income - FTE earnings per share - diluted (Non-GAAP)	$	2.83	$	2.01	$	5.08	$	3.86

Tangible book value non-GAAP reconciliations:	UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
	As of June 30,
	2021		2020
Total shareholders' equity (GAAP)	$	3,090,244	$	2,777,395
Less: Intangible assets
Goodwill		174,518		180,867
Other intangibles, net		16,636		24,181
Total intangibles, net		191,154		205,048
Total tangible shareholders' equity (Non-GAAP)	$	2,899,090	$	2,572,347

Total shares outstanding		48,346,371		48,021,707

Ratio of total shareholders' equity (book value) per share	$	63.92	$	57.84
Ratio of total tangible shareholders' equity (tangible book value) per share (Non-GAAP)		59.96		53.57

2nd Quarter 2021 Update UMB Financial Corporation July 27, 2021 Exhibit 99.2

Presentation Index 2 Corporate Overview Opportunity – Our Investment Thesis 2nd Quarter 2021 Results Line of Business Updates Appendix 3 8 17 32 42 Board of Directors Forward-Looking Statements Non-GAAP Reconciliations Please refer to the Forward-Looking Statements on slide 43 for important disclosures about information contained in this presentation. Peer Group

Corporate Overview 3 Highlights Asset-based lending Accounts receivable financing Healthcare Services 91 banking centers 230 ATMs UMB Bank Presence Twin Cities - MN Salt Lake City - UT UMB Financial Corporation Headquarters Expansion Markets International Presence UMBF Trust & Agency Services – Dublin, Ireland Corporate Trust Capital Markets (4) Fund Services Private Wealth Management / Personal Trust At, or for the 3 months ended, 06/30/21. (1) Includes $766mm in PPP balances; (2) Includes $11.8B in managed assets and $4.2B in Assets Under Administration for Private Wealth customers; (3) Includes assets in Fund Services, Corporate Trust and Healthcare Services; (4) UMB Bank, n.a. Capital Markets Division.

Beyond Financials – Our Culture 4 A company built to withstand the test of time. 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. Our Values Our Goal Our Vision

5 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.

Beyond Financials – Our Commitment to Corporate Citizenship Read our 2020 Corporate Citizenship Report at UMB.com/CorporateCitizenship 6 Effective governance programs help achieve business goals and drive value. 12-person board of directors, with 10 independent members 33% 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 Closely analyzed and competitive compensation practices Strong Corporate Governance UMB recognizes the undeniable importance of sustainable business practices. 74 UMB buildings use automated systems designed to conserve energy More than 161,000 kilowatt hours generated by solar panels Energy-efficient lighting programs saved more than 189,000 kilowatt hours Recycled 13,350 pounds of comingled materials and 308 pounds of batteries Efficient & Sensible Resource Use Associate volunteerism and corporate philanthropy help build strong community partnerships. 1,000+ participants in our workplace giving campaign supporting qualified nonprofits UMB’s Matching Gift Program utilization increased 380% from 2019 to 2020 $2.6mm+ in donations and sponsorships in 2020 UMB Market went virtual, with videos and worksheets to help children learn about healthy shopping on a budget Community Impact We want our company to be as diverse as the world we live in. Eight Business Resource Groups (BRGs) help us understand the needs of our associates, customers and communities Our BRGs provide opportunities to listen, learn and turn empathy into action Unconscious bias training is embedded throughout manager development offerings In 2020, 29% of all UMB hires were people of color, 47% were women and 8% were veterans Diversity among leadership team – 8 of 16 members Inclusion & Diversity

Business Model – Our Diverse Foundation Commercial & Personal Banking Services Revenue: FY’20 $929 million; YTD’21 $455 million / Average deposits: $18.0 billion 7 Institutional Banking Services Revenue: FY’20 $362 million; YTD’21 $181 million / Average deposits: $9.8 billion Institutional Banking provides solutions for the entire marketplace. $410.7 billion in AUA. Corporate Trust Bond trustee, paying agent & escrow services Institutional Custody Domestic & international custody services Fund Services Fund accounting, fund administration & transfer agency Specialty Trust & Agency Solutions Default workout & successor trustee services Aviation, ABS & loan agency services Capital Markets Division(3) Fixed income sales & trading Public finance Investor Solutions Banking, cash management & specialty services for financial firms Healthcare Services Health savings accounts Healthcare payment solutions Balances at or for quarter ended 06/30/21. (1) Excludes $1.2B in avg. PPP balances and $386mm in avg. credit card balances; (2) Includes consumer loans plus residential real estate loans to retail and private banking clients; (3) Products and services offered through UMB Bank Capital Markets Division; NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED.

Our Investment Thesis

Investment Thesis – Our Opportunity 9 Track record of relative outperformance in 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 Attractive deposit base Stable, diverse and low-cost funding sources Net interest income growth outpacing the industry Above peer earning asset growth Focus on returning value to shareholders Risk-adjusted returns EPS and tangible book value growth outpace peers Consistent dividend growth Differentiated revenue profile and growing fee income Revenue from diverse lines of business and verticals provide a natural hedge against lower rate environments Solid capital and liquidity positions support growth objectives Higher common equity levels Attractive loan-to-deposit ratio Time-tested underwriting philosophy Unwavering credit standards Long-tenured credit team – average of 22 years with UMB Chief Credit Officer – 35 years with UMB

Balance Sheet Growth – Across All Business Cycles 10 Average Loans Average Deposits Average annual balances in billions. 1.69% 0.40% 1.01% 0.25% Annual Loan Growth Annual Deposit Growth 13% 14% 9% 7% 5% 2% 6% 10% 10% 18% 12% 21% 19% 9% 7% 10% 3% 7% 4% 14% 16% 11% 14% 10% 20% 13% 6% 11% 9% 4% 7% 14% 15 Year CAGR 11.1% 15 Year CAGR 10.6% (1) (1) Excludes PPP balances for 2020; (2) UMB traditional peer group (15 banks); Source: S&P Global. Note: our peer group changed in 2Q’21 due to M&A activity within the group. See slide 48.

Differentiated Revenue Profile – Multiple Sources of Growth 11 Net Interest Income Fee Income Provides Diversity 15 Year CAGR 9.5% Dollars in millions. 30% 28% 57% 43% $440.2 $1,291.4 $472.2 $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 7.4% Revenue Growth Peer Med. 15 Year CAGR 6.2% Peer Med. 15 Year CAGR 6.9% Annual NII Growth Annual Revenue Growth 5% 15% 7% 18% 10% 3% 2% 1% 9% 4% 5% 18% 20% 13% 9% 10% 8% 7% 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) Source: S&P Global.

Capital & Liquidity – Supports Growth Outlook 12 Cash & Securities / Assets Loans / Deposits Tier 1 Capital Ratio Tangible Common Equity / Assets (4) (3) (2) (1) Source: S&P Global; (2) Non-GAAP measure. See reconciliations on slide 47; (3) As defined by S&P Global; “Cash, cash equiv. & investment securities/assets;” (4) EOP balances.

History of Strong, Resilient Credit – Through All Economic Environments 13 Net Charge-Offs / Average Loans Nonperforming Loans / Loans 0.49% 0.25% 0.16% 0.74% 0.36% 0.16% 1.18% 0.79% 0.55% 0.50% 0.22% 0.13% 15 Year Average 0.30% 15 Year Average 0.43% (1) UMB’s traditional peer group (15 banks), source: S&P Global; (2) All FDIC-insured institutions, source: FDIC Annual Statistics.

Risk-Adjusted Returns – Rowing Close to Shore 14 Risk-Weighted Assets / Assets Return on Risk-Weighted Assets (1) Source: S&P Global.

Outperformance – Building Long-Term Value 15 15-Year Compounded Annual Growth Rates 2005 – 2020 (1) *KBW Nasdaq Regional Bank Index (50 banks); **UMB’s traditional peer group (15 banks); ***All publicly-traded banks with data reported for both 2005 and 2020. Source: S&P Global. (1) Non-GAAP measure. See reconciliations on slide 46.

Dividend Trends – Sustained Growth 16 (1) Dividends adjusted for 2-for-1 stock split in 2006. Annual Dividends Declared (1) +228.9% through YE 2020

2nd Quarter 2021 Financial Review

2Q 2021 Results At-A-Glance 18 Dollars in millions, except per share amounts. (1) Non-GAAP measure. See reconciliations on slides 44 and 45. 2Q ’20 1Q ’21 2Q ’21 Linked-Quarter Commentary

2Q 2021 Earnings Highlights 19 Dollars in millions, except per share amounts. (1) Non-GAAP measure. See reconciliations on slide 44; (2) Net gains/losses related to mark-to-market valuations on our investment in TTCF and the sale of 3.5mm shares during 2Q’21.

Revenue Trends 20 Dollars in millions. Columns may not sum due to rounding differences. 2Q ’20 3Q ’20 4Q ’20 1Q ’21 2Q ‘21 Linked-Qtr. Variance $ ∆ % ∆

Net Interest Income 21 @ 0.10% $4.5B $4.5B $2.3B $2.3B $2.6B @ 0.92% @ 0.78% @ 0.76% @ 0.86% @ 0.70% @ 0.11% @ 0.11% @ 0.11% @ 0.10% Asset Yield and Liability Cost Trends Liquidity Trends Impact NIM $194.1 $178.2 $184.4 $194.7 $171.3 $175.7 $180.8 $180.7 Dollars in millions. $201.1 $188.7 EA % IBL % COF %

Noninterest Income 22 Current Quarter Highlights Composition / Changes in Inv. Securities Gains (Losses) and Trust & Securities Processing Dollars in millions. (1) Source: S&P Global. Noninterest income increased $22.7mm, or 20.8%, vs. 1Q’21, driven by: $23.8mm in additional investment securities gains, primarily related to our investment in Tattooed Chef; An increase of $1.4mm in bankcard fees from higher interchange income; and $3.3mm increase in derivative income in other income, offset by the gain on sale of PCM in prior quarter. Offsets included: A $971k decrease in trust and securities processing income, where strong fund services revenue was offset by the impact of the previously announced sale of Prairie Capital Management; and A decrease of $686k in trading and investment banking income related to lower trading volumes. $108.9 $131.6 $120.5 $113.0 $228.3 LQ Variance

Noninterest Expense 23 Current Quarter Highlights Noninterest expense increased $392k, or 0.2%, vs. 1Q’21 driven by: Increases of $2.5mm, $2.4mm, and $1.1mm in marketing and business development expense, legal and consulting expense, and processing fees, respectively, due to timing of various marketing initiatives, legal costs, and timing of software projects. An increase of $2.2mm in other noninterest expense related to OREO losses, derivative expense, and miscellaneous loan fee expense. These increases were offset by decreases of $5.7mm in payroll taxes, insurance and 401(k) expense, and $1.8mm in bonus and commission expense. Dollars in millions. Columns may not sum due to rounding differences.

$15,098 $13,897 $14,233 $14,625 $15,732 $16,041 $16,246 Diversified Loan Portfolio 24 Average balances in millions. Loans by Region Kansas City 38% Colorado 17% Arizona 9% St. Louis 13% Greater MO 6% KS - 2% Texas 10% NE - 2% OK - 2% MN - 1% $14,933 $16,818 $15,642

Quarterly Loan Activity 25 (1) Payoffs and paydowns include C&I and CRE loans. (1) (1)

Note: We removed Retail CRE, with 06/30/21 balances of $480mm, from the sensitive industries list based on borrower performance and improving macroeconomic environment. Pandemic-Sensitive Industries 26 2.9% 97.1% All Other Loans $15.7B (1) Hotel CRE Majority of the hotel portfolio is flagged by national hotel brands Limited service and extended stay properties comprise half of hotel portfolio 62% to top sponsors; weighted avg. LTV 54% Industry reports show that occupancy rates reached an 88-week high in June 2021 and that revenue per available room was in “recovery” for the third straight week Closely watching trends, including the current labor shortage in the hospitality industry. Senior Living CRE Defined as independent, assisted living and memory care facilities 29% to top sponsors; weighted avg. LTV 65% All facilities reopened and resuming tours/move-ins; absorption of vacant units varies by location and type Properties that were stabilized pre-pandemic have generally experienced stable occupancy, although with increased expenses (1) PPP loans are excluded from the denominator when calculating percentages of total loans.

Strong Asset Quality 27 Net Loan Charge-Offs Delinquencies Nonperforming Loans Allowance for Credit Losses Dollars in millions. (1) Delinquencies represent accruing loans > 30 days past due; (2) Total loans include PPP balances. 0.04%

28 Detailed Net Charge-Off History (1) Loan categories were updated in Q1 2020 with the 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.

$10,699 $11,284 $9,177 $9,815 $10,171 $8,573 $8,858 $9,368 $9,924 $7,928 Available-for-sale Portfolio High-Quality Investment Portfolio 29 Average balances in millions. (1) Includes purchases made for roll-off and overbuy; net of purchases related to sales/trades. AFS Portfolio Statistics & Activity AFS balance

Diversified Deposit Mix 30 $26,826 $22,781 $24,127 $24,965 Deposits by Line of Business Commercial Personal Institutional Regional Banking 37% Consumer & Private Wealth 25% Capital Mkts. & Corp. Trust 12% Healthcare Services 9% Fund Services 6% Specialty Banking 2% Investor Solutions 9% 34% 34% 36% 36% 39% Average balances in millions. $27,783

Line of Business Updates

Commercial Banking – C&I Lending 32 Commercial & Industrial Statistics (1) C&I Industry Diversification (2) Average loan size: $4.9 million 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 Technology Materials Manufacturing Food/Beverage Manufacturing Healthcare Commercial Services Other (4) Agribusiness RE & Construction Finance & Insurance Energy-Related $6.8B 42.1% of total UMB loans Commercial Line Utilization Trends +19% YoY Dollars in billions at period end. (1) Includes commercial & industrial and leases, excludes PPP loans; (2) Industries as a percentage of C&I portfolio; (3) Excluding PPP loans. (3)

Commercial Banking – Commercial Real Estate 33 Commercial Real Estate Statistics Investment CRE / Construction Portfolio (1) Total Investment CRE Portfolio Average Loan-to-value: 61% Recourse: 86% Const. / Land Dev. 13% Owner-Occupied 29% Investment CRE 49% $6.3B Farmland 8% as of June 30, 2021 1-4 Unit Residential Construction = 1% of total (2) Retail Multifamily Office Building Hotel Industrial Sr. Living Mixed Use Student Housing Other (4) Owner-occupied – new purchase or refinance Real estate development – construction / perm financing, bridge financing, renovations Investment CRE – 3 to 10-year term loans for property investors Resi. Rental $4.1B 25.2% of total UMB loans (1) Industries as a percentage of investment CRE and construction portfolio; (2) Excluding PPP loans; (3) Calculated using Tier 1 capital plus an adjusted ACL, per regulatory guidelines. Regulatory Concentrations Total non-farmland CRE / Total RBC: 160% Construction & Development Loans / Total RBC: 32% (3)

Commercial Banking – Capital Finance 34 SBIC fund - UMB Capital Corporation is a small business investment company that provides financing solutions via loans, equity and debt securities Swaps and derivatives - UMB Capital Finance will build customized instruments to help manage interest rate risk and optimize balance sheets Syndicated finance – Expertise in complex funding arrangements Serving small to lower middle-market companies with revenues ~ $2mm to $150mm. Working capital facilities typically between $500k to $10mm. Financing that facilitates cash flow when traditional lending may not be available for highly-leveraged borrowers or those with a concentrated customer mix. Serving middle-market companies with revenues ~$15mm to $300mm. Working capital facilities typically $10mm to $50mm via lines of credit secured by accounts receivable and inventory, and term loans supported by equipment, real estate and cash-flow. Deeply experienced in financing acquisitions, recapitalizations and aggressive growth strategies Asset-based Lending Factoring / Accounts Receivable Financing Mezzanine Debt & Minority Equity Investments Examples of recent investments: Average balances in millions.

Personal Banking – Consumer 35 Metrics at or for the quarter ended 06/30/21. (1) Includes residential real estate and other consumer loans for retail and private banking customers. $ millions Mobile Deposits 18% Digital Sales 24% 15% of non-mortgage loan applications of new retail deposit accounts vs. 16% 2Q’20 $44mm $16mm vs. $34mm 2Q’20 Expanding Digital Capabilities of consumer deposits via mobile app Mobile App Rating Apple Store 4.1 stars Google Store 4.5 stars +29%

Personal Banking – Private Wealth Management 36 Personal Trust 29% Investment Advisory 22% Non-Managed AUA 26% IRAs 6% Brokerage 4% Other 4% Charitable9% Customer Assets Managed Assets (AUM): $11.8B Non-Managed Assets (AUA): $4.2B $639mm $694mm FY’19 FY’20 New Assets / Sales (1) Composition as of 06/30/21. (1) Includes AUM and AUA; (2) American Customer Satisfaction Index “Score.” Source: Market Strategies International; (3) Source: 2020 Forrester Net Promoter Benchmarks Study

Institutional Banking – Fund Services & Institutional Custody 37 Assets Under Administration +33% YoY Best Interval Fund Administrator (1) Best Administrator – Technology (2) Voted #1 Transfer Agency (3) Fund Services – Registered Funds & Alternative Investments Institutional Custody $345B $286B $306B $336B # 1 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. Top 10 Mutual Fund Custodian (4) TOP 10 Best US Custodian – 2019 (3) $379B (1) Fund Intelligence ‘19-’20 Awards; (2) Hedgeweek U.S. Awards ‘20 & Private Equity Wire U.S. Awards ’20; (3) 2020 Mutual Fund Service Guide; (4) Private Equity Wire U.S. Awards ’19.

Institutional Banking – Corp/Specialty Trust & Capital Markets Corporate Trust & Escrow Services Provides trustee, paying agent and escrow services to municipal and corporate issuers. $30B Assets Under Administration Municipal Trustee & Paying Agent in U.S. (1) #3 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. New Irish Office +34% 262 New Deals Closed YTD vs. 195 YTD 2020 +109% +68% New Business $ Volume on 1,353 Deals Building presence in top aviation leasing market Growth in New Business $ Volume YTD 75% of our trust team members are Certified Corporate Trust Professionals 38 (1) Ranked by number of issues -Thomson Reuters municipal rankings, June 2021; (2) Bloomberg - ranking for 2020; (3) Products and services offered through UMB Bank Capital Markets Division – NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED. Examples of recent deals: All comparisons are YTD 2021 vs. YTD 2020. Capital Markets Division (3) Capital solutions including fixed income sales, trading and underwriting for institutional, municipal and not-for-profit organizations. $92,125,000 Unlimited Tax Refunding Bonds, Taxable Series ‘21 Senior Manager $11,245,000 Public Facilities Corp. Lease Revenue Bonds, Series ‘21 Sole Manager $268,380,000 Unlimited Tax School Building Bonds, Series ‘21 Co-Manager $225,770,000 Unlimited Tax School Building and Refunding Bonds, Series ‘21 Co-Manager Northside Independent School District (TX) San Antonio Independent School District (TX) Pflugerville Independent School District (TX)

FDIC Sweep Assets Under Administration $67B Institutional Banking – Investor Solutions & Healthcare Services 39 Investor Solutions Provides large-scale banking services and payment solutions for non-bank financial institutions and fintech companies. Annual ACH Transactions Healthcare Services Provides healthcare payment solutions including health savings accounts (HSAs), healthcare spending accounts and payments technology. HSA Account Holders 1.3mm In HSA Assets & Deposits $3.1B Top 5 HSA Custodians in the U.S. (4) TOP 5 30% of Top Independent Broker-Dealers are UMB Clients (2) 60% of Top Clearing Firms are UMB Clients (1) Benefit Cards 5mm >50mm > 6mm accounts Recognized for Investment Quality (3) Fintech Partnerships (1) InvestmentNews 2019; (2) Financial Planning June 2020; (3) Investor’s Business Daily 2021; (4) Ranked by number of accounts - Devenir Research YE 2020.

Payments – Credit & Debit Card Products 40 $3,550 $2,578 $3,122 $3,315 Card Purchase Volume & Interchange Trends 2Q ‘21 Card Spend $3.7B 23rd In U.S. Credit Card Purchase Volume (1) #23 $3,658 $ millions (1) Rank in commercial, consumer and small business cards among top 50 U.S. issuers. Source: Nilson Report, December 2020.

Appendix

Leadership – Our Board of Directors 42 AC = Audit Committee; CC = Compensation Committee; GC = Governance Committee RC = Risk Committee

Forward-Looking Statements 43 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, the COVID-19 pandemic (the “pandemic”) may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. The pandemic has created a global public-health crisis that has resulted in widespread volatility and deteriorations in household, business, economic, and market conditions. It is currently adversely affecting the company and its customers, counterparties, employees, and third-party service providers, and the continued adverse impacts on our business, financial position, results of operations, and prospects could be significant. We are not able to accurately predict the extent of the impact of the pandemic on our capital, liquidity, and other financial positions and on our business, results of operations, and prospects at this time, and we believe it will depend on a number of evolving factors, including: (i) the duration, extent and severity of the pandemic; (ii) the response of governmental and non-governmental authorities to the pandemic, which is rapidly changing and not always coordinated or consistent across jurisdictions; (iii) the effect of the pandemic on our customers, counterparties, employees and third-party service providers, which may vary widely, and which is generally expected to increase our credit, operational, and other risks and (iv) the effect of the pandemic on economies and markets, which in turn could adversely affect, among other things, the origination of new loans and the performance of our existing loans. The pandemic is also expected to have a significant impact on our current expected credit loss (CECL) calculation and related provision under a new accounting standard that we were required to adopt in January 2020. The CECL calculation includes periodic estimates of the net amount expected to be collected over the contractual term of certain financial assets, and requires us to take into account, among other things, economic conditions forecasted over the life of the financial asset, including the current and anticipated effects of the pandemic. Any forward-looking statement should be evaluated in light of these considerations. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except to the extent required by applicable securities laws. You, however, should consult 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.

Non-GAAP Reconciliations 44 The following are non-GAAP measures used by the company from time to time. To the extent a non-GAAP measure is used during this presentation, a reconciliation to such measure’s closest GAAP equivalent is provided below. The Company believes that these non-GAAP financial measures and the reconciliations may be useful to investors because they adjust for items that management does not believe reflect the Company’s fundamental operating performance. Pre-tax pre-provision income for the relevant period is defined as GAAP net income, adjusted to reflect the impact of excluding income tax and provision expense. Pre-tax, pre-provision income on a fully tax equivalent basis for the relevant period is defined as GAAP net interest income on a fully tax equivalent basis plus noninterest income, less noninterest expense. Tangible book value per share is defined as the Company’s total shareholders’ equity, net of intangible assets, divided by total shares outstanding. Tangible common equity ratio is calculated as the Company’s total shareholders’ equity, net of intangible assets, divided by total assets, net of intangible assets. Pre-Tax, Pre-Provision Income (unaudited, dollars in thousands except share and per share data)

Non-GAAP Reconciliations 45 Pre-Tax, Pre-Provision Income on a Fully Tax-Equivalent Basis (unaudited, dollars in thousands except share and per share data)

Non-GAAP Reconciliations 46 Tangible Book Value (1) Share count for December 31, 2005, adjusted for Company’s 2-for-1 stock split on May 31, 2006. (unaudited, dollars in thousands except share and per share data)

Non-GAAP Reconciliations 47 Tangible Common Equity Ratio (unaudited, dollars in thousands)

48 Our Peer Group All peer data in this presentation is sourced from S&P Global.