Business Wire | Apr 27, 2021 08:01AM EDT

UMB Financial Corporation Reports First Quarter Net Income of $92.6 Million

Apr. 27, 2021

KANSAS CITY, Mo.--(BUSINESS WIRE)--Apr. 27, 2021--UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the first quarter of 2021 of $92.6 million, or $1.91 per diluted share, compared to net income of $156.3 million, or $3.24 per diluted share, in the fourth quarter of 2020 (linked quarter) and net loss of $3.4 million, or $0.07 per diluted share, in the first 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 $92.8 million, or $1.91 per diluted share, for the first quarter of 2021, compared to $157.4 million, or $3.26 per diluted share, for the linked quarter and net operating loss of $1.9 million, or $0.04 per diluted share, for the first 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 $108.7 million, or $2.24 per diluted share, for the first quarter of 2021, compared to $202.9 million, or $4.20 per diluted share, for the linked quarter, and $90.2 million, or $1.85 per diluted share, for the first quarter of 2020. These PTPP-FTE results represent a decrease of 46.4% on a linked-quarter basis and an increase of 20.5% compared to the first quarter of 2020.

Net income comparisons to the linked quarter were primarily impacted by an $108.8 million pre-tax gain recognized in the prior period on the company's equity investment in Tattooed Chef, Inc. (TTCF), and a subsequent $16.1 million pre-tax mark-to-market loss on those investments in the current period. Net income comparisons to the first quarter of 2020 were primarily impacted by the significantly higher provision expense in the prior period related to the implementation of the current expected credit loss (CECL) methodology for estimating allowance for credit losses as well as the $16.1 million pre-tax mark-to-market adjustment on TTCF shares.

Summary of quarterly financial results UMB Financial Corporation

(unaudited, dollars in thousands, except per share data)

Q1 Q4 Q1

2021 2020 2020

Net income (loss) (GAAP) $ 92,643 $ 156,320 $ (3,439 )

Earnings (losses) per share (diluted) 1.91 3.24 (0.07 )



Pre-tax, pre-provision income (Non-GAAP) 102,066 196,107 83,746

Pre-tax, pre-provision earnings per share 2.10 4.06 1.72 (diluted)



Pre-tax, pre-provision income - FTE 108,744 202,946 90,224 (Non-GAAP)

Pre-tax, pre-provision earnings per share 2.24 4.20 1.85 - FTE (diluted)



Net operating income (loss) (Non-GAAP) 92,780 157,405 (1,881 )

Operating earnings (losses) per share 1.91 3.26 (0.04 )(diluted)



GAAP

Return on average assets 1.14 % 2.03 % (0.05 ) %

Return on average equity 12.56 21.18 (0.51 )

Efficiency ratio 66.46 53.44 68.93



Non-GAAP

Operating return on average assets 1.14 % 2.05 % (0.03 ) %

Operating return on average equity 12.58 21.33 (0.28 )

Operating efficiency ratio 66.40 53.11 68.19

"Our team continued to deliver and execute on core tenets that differentiate our story and value proposition for our shareholders," said Mariner Kemper, chairman, president and chief executive officer. "During the first quarter, we saw optimistic signs of an improving operating environment. Strong balance sheet growth funded by a growing core deposit base, robust fee income generation from our diversified business lines, and solid asset quality metrics drove our strong financial results. Average loans, excluding Paycheck Protection Program (PPP) balances, increased 8.4% annualized on a linked-quarter basis. Net charge-offs averaged just 13 basis points of loans, while levels of non-performing assets and delinquencies improved from the end of the prior period. The 19-basis-point decline in net interest margin on a linked-quarter basis was due in part to excess liquidity as well as seasonal inflows in some of our businesses, which had approximately a 16 basis-point impact to our margin."

Summary of UMB Financial Corporationrevenue

(unaudited,dollars in thousands)

Q1 Q4 Q1 CQ vs. CQ vs.

2021 2020 2020 LQ PY

Net interest $ 194,115 $ 194,675 $ 173,941 $ (560 ) $ 20,174 income

Noninterest income:

Trust andsecurities 54,834 50,773 47,000 4,061 7,834 processing

Trading andinvestment 9,356 9,693 1,723 (337 ) 7,633 banking

Servicecharges on 21,976 20,074 25,081 1,902 (3,105 )depositaccounts

Insurancefees and 420 318 259 102 161 commissions

Brokerage 3,334 3,918 9,860 (584 ) (6,526 )fees

Bankcard fees 14,673 15,788 16,545 (1,115 ) (1,872 )

Investmentsecurities (8,336 ) 113,010 3,520 (121,346 ) (11,856 )(losses)gains, net

Other 12,640 14,716 (5,564 ) (2,076 ) 18,204

Totalnoninterest $ 108,897 $ 228,290 $ 98,424 $ (119,393 ) $ 10,473 income

Total revenue $ 303,012 $ 422,965 $ 272,365 $ (119,953 ) $ 30,647

Net interest $ 200,793 $ 201,514 $ 180,419 income (FTE)

Net interest 2.59 % 2.78 % 2.97 % margin (FTE)

Totalnoninterestincome as a % 35.94 53.97 36.14 of totalrevenue

Net interest income

* Net interest income totaled $194.1 million, which is a decrease of $0.6 million as compared to the linked quarter. The positive impact from strong balance sheet growth was reduced by the impacts of lower loan fees and PPP income in the quarter. Average earning assets increased $2.6 billion, or 8.9%, driven primarily by an increase in excess liquidity, while interest-bearing liabilities increased $1.6 billion, or 8.8%. * Net interest margin for the first quarter was 2.59%, a decrease of 19 basis points from the linked quarter, driven in part from the impacts of excess liquidity. Earning asset yields declined 21 basis points from the linked quarter, while the cost of interest-bearing liabilities decreased three basis points to 0.24%, driven by a four-basis-point decline in the cost of interest-bearing deposits. Net interest spread decreased 18 basis points to 2.50% from the linked quarter and was 16 basis points lower than the first quarter of 2020. * On a year-over-year basis, net interest income increased $20.2 million, or 11.6%, driven by a $2.6 billion, or 19.3%, increase in average loans, and a $1.9 billion, or 22.2%, increase in average securities. These increases were driven by organic loan growth, excess liquidity, and the company's PPP participation. * Average deposits increased 7.5% on a linked-quarter basis and 28.8% compared to the first quarter of 2020. Average noninterest-bearing demand deposit balances increased 9.0% on a linked-quarter basis and 50.2% compared to the first quarter of 2020.

Noninterest income

* First quarter 2021 noninterest income decreased $119.4 million, or 52.3%, on a linked-quarter basis, largely due to: A decrease of $121.3 million in investment securities gains, primarily due to a decrease of $124.9 million in gains on the company's investment in TTCF, partially offset by increases of $1.4 million in equity earnings on alternative investments and $1.3 million in gains on sales of available for sale securities. Decreases of $4.4 million in company-owned life insurance income and $1.1 million in derivative income, both recorded in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below. These decreases were partially offset by increases of $2.6 million and $1.0 million in fund services income and trust services income, respectively, both recorded in trust and securities processing, an increase of $1.7 million in healthcare income, recorded in service charges on deposits, and an increase in other income of $4.3 million due to the gain on sale of Prairie Capital Management, LLC (PCM). * Compared to the prior year, noninterest income in the first quarter of 2021 increased $10.5 million, or 10.6%, primarily driven by: An increase of $18.2 million in other income, driven by an increase of $15.0 million in company-owned life insurance and a gain of $4.3 million on the sale of PCM. The increase in company-owned life insurance is offset by a proportionate increase in deferred compensation expense as noted below. An increase of $7.8 million in trust and securities processing, driven by increases of $5.0 million in fund services income, $1.6 million in trust services income, and $1.2 million in corporate trust revenue. An increase of $7.6 million in trading and investment banking due to increased trading volume. These increases were partially offset by the following decreases: A decrease of $11.9 million in investment securities gains due to the $16.1 million mark-to-market loss on the company's investment in TTCF, during the first quarter of 2021, partially offset by increased gains on sales of available for sale securities and equity earnings on alternative investments. A decrease of $6.5 million in brokerage fees, primarily driven by lower 12b-1 income. A decrease of $3.1 million in service charges on deposits, driven by reduced healthcare income related to customer transfer and conversion fees.

Noninterest expense

Summary ofnoninterest UMB Financial Corporationexpense

(unaudited,dollars in thousands)

Q1 Q4 Q1 CQ vs. CQ vs.

2021 2020 2020 LQ PY

Salaries and $ 127,681 $ 129,272 $ 111,060 $ (1,591 ) $ 16,621 employee benefits

Occupancy, net 11,935 11,858 12,180 77 (245 )

Equipment 19,615 22,008 21,241 (2,393 ) (1,626 )

Supplies and 3,492 4,125 4,185 (633 ) (693 )services

Marketing andbusiness 2,345 3,717 4,640 (1,372 ) (2,295 )development

Processing fees 15,417 14,408 13,390 1,009 2,027

Legal and 5,755 10,191 6,110 (4,436 ) (355 )consulting

Bankcard 4,956 4,711 4,860 245 96

Amortization ofother intangible 1,380 1,601 1,734 (221 ) (354 )assets

Regulatory fees 2,546 2,393 2,366 153 180

Other 5,824 22,574 6,853 (16,750 ) (1,029 )

Total noninterest $ 200,946 $ 226,858 $ 188,619 $ (25,912 ) $ 12,327 expense

* Noninterest expense for the first quarter of 2021 was $200.9 million, a decrease of $25.9 million, or 11.4%, from the linked quarter and an increase of $12.3 million, or 6.5%, from the first quarter of 2020. * The linked-quarter decrease in noninterest expense was driven by: Decreases of $14.2 million in operational losses, $1.0 million in derivative expense, $0.9 million in charitable contributions expense, and $0.9 million in losses on other real estate owned, all recorded in other noninterest expense. A decrease of $2.4 million in software expense, recorded in equipment expense. Decreases of $2.3 million in consulting expense and $2.1 million in legal expense, both recorded in legal and professional expense, due to timing of multiple technology initiatives and legal work performed on various matters. Decreases of $8.4 million in bonus and commission expense, $1.9 million in deferred compensation expense, and $1.0 million in salary and wage expense, all recorded in salaries and employee benefits. These decreases were partially offset by a seasonal increase of $9.6 million in payroll taxes, insurance, and 401(k) expense recognized in the first quarter. The decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above. * The year-over-year increase in noninterest expense was driven by: An increase of $16.6 million in salaries and employee benefits, primarily due to increased deferred compensation expense. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above. These increases were partially offset by a decrease of $2.3 million in marketing and development expense, primarily due to a decline in travel and entertainment expense due to the pandemic, and a decrease of $1.3 million in software expense, recorded in equipment expense.

Income taxes

* The company recognized income tax expense of $16.9 million, or 15.4%, on pre-tax income of $109.6 million for the three months ended March 31, 2021, compared to an income tax benefit of $0.8 million, or 19.2%, on a pre-tax loss of $4.3 million for the same period in 2020. The amount of tax expense recorded for the three months ended March 31, 2021 reflects management's estimate of the annual effective tax rate applied to the year-to-date income adjusted for the tax impact of items discrete to the quarter.

Balance sheet

* Average total assets for the first quarter of 2021 were $33.1 billion compared to $30.6 billion for the linked quarter and $26.0 billion for the same period in 2020.

Summary of average loans and leases - QTD UMB Financial CorporationAverage

(unaudited,dollars in thousands)

Q1 Q4 Q1 CQ vs. CQ vs.

2021 2020 2020 LQ PY

Commercialand $ 7,139,101 $ 7,079,646 $ 5,786,545 $ 59,455 $ 1,352,556 industrial

Specialty 502,585 506,225 510,316 (3,640 ) (7,731 )lending

Commercial 5,971,047 5,847,439 5,181,036 123,608 790,011 real estate

Consumer 1,970,767 1,903,892 1,414,025 66,875 556,742 real estate

Consumer 117,095 128,350 141,972 (11,255 ) (24,877 )

Credit cards 362,051 382,166 418,485 (20,115 ) (56,434 )

Leases and 183,447 193,363 164,187 (9,916 ) 19,260 other

Total loans $ 16,246,093 $ 16,041,081 $ 13,616,566 $ 205,012 $ 2,629,527

* Average loans for the first quarter of 2021 increased 1.3% on a linked-quarter basis and 19.3% compared to the first quarter of 2020 due to increased commercial real estate and consumer real estate loans and the company's PPP participation, which had an average balance of $1.3 billion in the first quarter.

Summary ofaverage UMB Financial Corporationsecurities - QTDAverage

(unaudited,dollars in thousands)

Q1 Q4 Q1 CQ vs. CQ vs.

2021 2020 2020 LQ PY

Securitiesavailable for sale:

U.S. Treasury $ 36,032 $ 30,778 $ 49,638 $ 5,254 $ (13,606 )

U.S. Agencies 95,494 96,082 94,342 (588 ) 1,152

Mortgage-backed 5,599,987 5,053,821 4,133,118 546,166 1,466,869

State andpolitical 3,552,945 3,600,704 3,058,594 (47,759 ) 494,351 subdivisions

Corporates 83,271 76,870 188,257 6,401 (104,986 )

Total securitiesavailable for $ 9,367,729 $ 8,858,255 $ 7,523,949 $ 509,474 $ 1,843,780 sale

Securities held to maturity:

State andpolitical $ 1,023,418 $ 1,045,640 $ 1,108,716 $ (22,222 ) $ (85,298 )subdivisions

Trading 17,540 29,659 48,102 (12,119 ) (30,562 )securities

Other securities 308,297 267,445 124,795 40,852 183,502

Total securities $ 10,716,984 $ 10,200,999 $ 8,805,562 $ 515,985 $ 1,911,422

* Average securities available for sale increased 5.8% on a linked-quarter basis and 24.5% compared to the first quarter of 2020.

Summary of average deposits - QTD UMB Financial CorporationAverage

(unaudited, dollars in thousands)

Q1 Q4 Q1 CQ vs. CQ vs.

2021 2020 2020 LQ PY

Deposits:

Noninterest-bearing $ 9,753,680 $ 8,947,389 $ 6,495,611 $ 806,291 $ 3,258,069 demand

Interest-bearing 16,302,880 15,250,236 13,232,370 1,052,644 3,070,510 demand and savings

Time deposits 769,464 767,755 1,097,780 1,709 (328,316 )

Total deposits $ 26,826,024 $ 24,965,380 $ 20,825,761 $ 1,860,644 $ 6,000,263

Noninterest bearingdeposits as % of 36.36 % 35.84 % 31.19 % total

* Average deposits increased 7.5% on a linked-quarter basis and 28.8% compared to the first quarter of 2020. * Average noninterest-bearing demand deposits increased 9.0% on a linked-quarter basis to $9.8 billion.

Capital

Capital information UMB Financial Corporation

(unaudited, dollars inthousands, except per share data)

March 31, December 31, March 31, 2021 2020 2020

Total equity $ 2,958,239 $ 3,016,948 $ 2,663,441

Book value per common share 61.24 62.84 55.33

Tangible book value per common 57.26 58.64 51.04 share



Regulatory capital:

Common equity Tier 1 capital $ 2,660,102 $ 2,547,634 $ 2,279,039

Tier 1 capital 2,660,102 2,547,634 2,279,039

Total capital 3,102,333 3,002,545 2,514,445



Regulatory capital ratios:

Common equity Tier 1 capital 12.25 % 12.10 % 11.90 %ratio

Tier 1 risk-based capital ratio 12.25 12.10 11.90

Total risk-based capital ratio 14.28 14.26 13.12

Tier 1 leverage ratio 8.08 8.37 8.81

* At March 31, 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)

Q1 Q4 Q3 Q2 Q1

2021 2020 2020 2020 2020

Net charge-offs - $ 5,310 $ 1,801 $ 5,111 $ 5,541 $ 7,672 Total loans

Net loancharge-offs as a 0.13 % 0.04 % 0.13 % 0.15 % 0.23 %% of totalaverage loans

Loans over 90 $ 1,773 $ 1,952 $ 1,372 $ 4,588 $ 2,211 days past due

Loans over 90days past due as 0.01 % 0.01 % 0.01 % 0.03 % 0.02 %a % of totalloans

Nonaccrual andrestructured $ 76,706 $ 87,823 $ 93,695 $ 82,245 $ 97,029 loans

Nonaccrual andrestructured 0.46 % 0.55 % 0.59 % 0.54 % 0.70 %loans as a % oftotal loans

Provision for $ (7,500 ) $ 5,000 $ 16,000 $ 21,500 $ 88,000 credit losses

* Provision for credit losses for the first quarter decreased $12.5 million from the linked quarter and $95.5 million from the first quarter of 2020. * Provision expense in 2020 included increased expense related to the impact on various economic variables due to the COVID-19 pandemic. The decline in the first quarter of 2021 represents a release of Allowance for Credit Losses based on positive macro-economic data and portfolio credit metrics. * Net charge-offs for the first quarter totaled $5.3 million, or 0.13%, of average loans, compared to $1.8 million, or 0.04%, of average loans in the linked quarter, and $7.7 million, or 0.23%, of average loans for the first quarter of 2020.

Conference CallThe company plans to host a conference call to discuss its first quarter earnings results on Wednesday, April 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 1Q 2021 Conference Call

A replay of the conference call may be heard through May 12, 2021 by calling (toll-free) 877-344-7529 or (international) 412-317-0088. The replay access code required for playback is 10153930. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial InformationIn this release, we provide information about net operating income (loss), operating earnings (losses) 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 (loss), 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 (loss) 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)

March 31,

2021 2020

ASSETS

Loans $ 16,497,385 $ 13,949,710

Allowance for credit losses on loans (202,814 ) (187,911 )

Net loans 16,294,571 13,761,799

Loans held for sale 10,275 9,585

Securities:

Available for sale 9,753,392 7,639,451

Held to maturity, net of allowance for credit 1,039,711 1,110,925 losses

Trading securities 29,099 61,177

Other securities 298,209 135,194

Total securities 11,120,411 8,946,747

Federal funds sold and resell agreements 1,629,813 784,750

Interest-bearing due from banks 3,860,763 1,109,254

Cash and due from banks 387,230 340,553

Premises and equipment, net 286,068 297,668

Accrued income 131,533 111,879

Goodwill 174,518 180,867

Other intangibles, net 17,793 25,839

Other assets 756,414 675,945

Total assets $ 34,669,389 $ 26,244,886



LIABILITIES

Deposits:

Noninterest-bearing demand $ 11,604,415 $ 7,269,520

Interest-bearing demand and savings 16,011,812 12,920,980

Time deposits under $250,000 457,290 595,128

Time deposits of $250,000 or more 207,275 389,892

Total deposits 28,280,792 21,175,520

Federal funds purchased and repurchase 2,759,818 1,890,917 agreements

Short-term debt - 15,000

Long-term debt 270,074 70,668

Accrued expenses and taxes 239,001 216,272

Other liabilities 161,465 213,068

Total liabilities 31,711,150 23,581,445



SHAREHOLDERS' EQUITY

Common stock 55,057 55,057

Capital surplus 1,093,667 1,073,089

Retained earnings 1,968,318 1,646,751

Accumulated other comprehensive income, net 169,197 219,390

Treasury stock (328,000 ) (330,846 )

Total shareholders' equity 2,958,239 2,663,441

Total liabilities and shareholders' equity $ 34,669,389 $ 26,244,886

Consolidated Statements of Income

UMB Financial Corporation

(unaudited, dollars in thousands except share and per share data)

Three Months Ended

March 31,

2021

2020

INTEREST INCOME

Loans

$

150,170

$

151,026

Securities:

Taxable interest

27,162

27,212

Tax-exempt interest

24,964

24,404

Total securities income

52,126

51,616

Federal funds and resell agreements

2,821

5,452

Interest-bearing due from banks

703

2,663

Trading securities

159

654

Total interest income

205,979

211,411

INTEREST EXPENSE

Deposits

6,798

29,732

Federal funds and repurchase agreements

1,886

6,381

Other

3,180

1,357

Total interest expense

11,864

37,470

Net interest income

194,115

173,941

Provision for credit losses

(7,500

)

88,000

Net interest income after provision for credit losses

201,615

85,941

NONINTEREST INCOME

Trust and securities processing

54,834

47,000

Trading and investment banking

9,356

1,723

Service charges on deposit accounts

21,976

25,081

Insurance fees and commissions

420

259

Brokerage fees

3,334

9,860

Bankcard fees

14,673

16,545

Investment securities (losses) gains, net

(8,336

)

3,520

Other

12,640

(5,564

)

Total noninterest income

108,897

98,424

NONINTEREST EXPENSE

Salaries and employee benefits

127,681

111,060

Occupancy, net

11,935

12,180

Equipment

19,615

21,241

Supplies and services

3,492

4,185

Marketing and business development

2,345

4,640

Processing fees

15,417

13,390

Legal and consulting

5,755

6,110

Bankcard

4,956

4,860

Amortization of other intangible assets

1,380

1,734

Regulatory fees

2,546

2,366

Other

5,824

6,853

Total noninterest expense

200,946

188,619

Income (loss) before income taxes

109,566

(4,254

)

Income tax expense (benefit)

16,923

(815

)

NET INCOME (LOSS)

$

92,643

$

(3,439

)

PER SHARE DATA

Net income (loss) - basic

$

1.93

$

(0.07

)

Net income (loss) - diluted

1.91

(0.07

)

Dividends

0.32

0.31

Weighted average shares outstanding - basic

48,096,643

48,689,876

Weighted average shares outstanding - diluted

48,520,752

48,689,876

Consolidated Statements of Income UMB Financial Corporation

(unaudited, dollars in thousands except share and per share data)

Three Months Ended

March 31,

2021 2020

INTEREST INCOME

Loans $ 150,170 $ 151,026

Securities:

Taxable interest 27,162 27,212

Tax-exempt interest 24,964 24,404

Total securities income 52,126 51,616

Federal funds and resell agreements 2,821 5,452

Interest-bearing due from banks 703 2,663

Trading securities 159 654

Total interest income 205,979 211,411

INTEREST EXPENSE

Deposits 6,798 29,732

Federal funds and repurchase agreements 1,886 6,381

Other 3,180 1,357

Total interest expense 11,864 37,470

Net interest income 194,115 173,941

Provision for credit losses (7,500 ) 88,000

Net interest income after provision for credit 201,615 85,941 losses

NONINTEREST INCOME

Trust and securities processing 54,834 47,000

Trading and investment banking 9,356 1,723

Service charges on deposit accounts 21,976 25,081

Insurance fees and commissions 420 259

Brokerage fees 3,334 9,860

Bankcard fees 14,673 16,545

Investment securities (losses) gains, net (8,336 ) 3,520

Other 12,640 (5,564 )

Total noninterest income 108,897 98,424

NONINTEREST EXPENSE

Salaries and employee benefits 127,681 111,060

Occupancy, net 11,935 12,180

Equipment 19,615 21,241

Supplies and services 3,492 4,185

Marketing and business development 2,345 4,640

Processing fees 15,417 13,390

Legal and consulting 5,755 6,110

Bankcard 4,956 4,860

Amortization of other intangible assets 1,380 1,734

Regulatory fees 2,546 2,366

Other 5,824 6,853

Total noninterest expense 200,946 188,619

Income (loss) before income taxes 109,566 (4,254 )

Income tax expense (benefit) 16,923 (815 )

NET INCOME (LOSS) $ 92,643 $ (3,439 )



PER SHARE DATA

Net income (loss) - basic $ 1.93 $ (0.07 )

Net income (loss) - diluted 1.91 (0.07 )

Dividends 0.32 0.31

Weighted average shares outstanding - basic 48,096,643 48,689,876

Weighted average shares outstanding - diluted 48,520,752 48,689,876

Consolidated Statements of Comprehensive Income

UMB Financial Corporation

(unaudited, dollars in thousands)

Three Months Ended

March 31,

2021

2020

Net income (loss)

$

92,643

$

(3,439

)

Other comprehensive (loss) income, before tax:

Unrealized gains and losses on debt securities:

Change in unrealized holding gains and losses, net

(199,038

)

164,116

Less: Reclassification adjustment for gains included in net income

(2,720

)

(1,227

)

Change in unrealized gains and losses on debt securities

(201,758

)

162,889

Unrealized gains and losses on derivative hedges:

Change in unrealized gains and losses on derivative hedges, net

6,503

14,525

Less: Reclassification adjustment for (gains) losses included in net income

(842

)

768

Change in unrealized gains and losses on derivative hedges

5,661

15,293

Other comprehensive (loss) income, before tax

(196,097

)

178,182

Income tax benefit (expense)

46,954

(41,972

)

Other comprehensive (loss) income

(149,143

)

136,210

Comprehensive (loss) income

$

(56,500

)

$

132,771

Consolidated Statements of Comprehensive Income UMB Financial Corporation

(unaudited, dollars in thousands)

Three Months Ended

March 31,

2021 2020

Net income (loss) $ 92,643 $ (3,439 )

Other comprehensive (loss) income, before tax:

Unrealized gains and losses on debt securities:

Change in unrealized holding gains and losses, net (199,038 ) 164,116

Less: Reclassification adjustment for gains included (2,720 ) (1,227 )in net income

Change in unrealized gains and losses on debt (201,758 ) 162,889 securities

Unrealized gains and losses on derivative hedges:

Change in unrealized gains and losses on derivative 6,503 14,525 hedges, net

Less: Reclassification adjustment for (gains) losses (842 ) 768 included in net income

Change in unrealized gains and losses on derivative 5,661 15,293 hedges

Other comprehensive (loss) income, before tax (196,097 ) 178,182

Income tax benefit (expense) 46,954 (41,972 )

Other comprehensive (loss) income (149,143 ) 136,210

Comprehensive (loss) income $ (56,500 ) $ 132,771

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 (loss) income

-

-

(3,439

)

136,210

-

132,771

Dividends ($0.31 per share)

-

-

(15,209

)

-

-

(15,209

)

Purchase of treasury stock

-

(4,500

)

-

-

(54,886

)

(59,386

)

Forfeitures of equity awards, net of issuances

-

521

-

-

72

593

Recognition of equity-based compensation

-

2,817

-

-

-

2,817

Sale of treasury stock

-

95

-

-

89

184

Exercise of stock options

-

392

-

-

1,878

2,270

Cumulative effect adjustment

-

-

(7,039

)

-

-

(7,039

)

Balance - March 31, 2020

$

55,057

$

1,073,089

$

1,646,751

$

219,390

$

(330,846

)

$

2,663,441

Balance - January 1, 2021

$

55,057

$

1,090,450

$

1,891,246

$

318,340

$

(338,145

)

$

3,016,948

Total comprehensive income (loss)

-

-

92,643

(149,143

)

-

(56,500

)

Dividends ($0.32 per share)

-

-

(15,571

)

-

-

(15,571

)

Purchase of treasury stock

-

-

-

-

(4,027

)

(4,027

)

Issuances of equity awards, net of forfeitures

-

(4,043

)

-

-

4,738

695

Recognition of equity-based compensation

-

4,457

-

-

-

4,457

Sale of treasury stock

-

65

-

-

86

151

Exercise of stock options

-

2,738

-

-

9,348

12,086

Balance - March 31, 2021

$

55,057

$

1,093,667

$

1,968,318

$

169,197

$

(328,000

)

$

2,958,239

Consolidated Statements UMB Financial Corporationof Shareholders' Equity

(unaudited, dollars in thousands except per share data)

Accumulated Common Capital Retained Other Treasury Total Stock Surplus Earnings Comprehensive Stock Income (Loss)

Balance -January 1, $ 55,057 $ 1,073,764 $ 1,672,438 $ 83,180 $ (277,999 ) $ 2,606,440 2020

Totalcomprehensive - - (3,439 ) 136,210 - 132,771 (loss) income

Dividends($0.31 per - - (15,209 ) - - (15,209 )share)

Purchase oftreasury - (4,500 ) - - (54,886 ) (59,386 )stock

Forfeituresof equity - 521 - - 72 593 awards, netof issuances

Recognitionof - 2,817 - - - 2,817 equity-basedcompensation

Sale oftreasury - 95 - - 89 184 stock

Exercise of - 392 - - 1,878 2,270 stock options

Cumulativeeffect - - (7,039 ) - - (7,039 )adjustment

Balance -March 31, $ 55,057 $ 1,073,089 $ 1,646,751 $ 219,390 $ (330,846 ) $ 2,663,441 2020



Balance -January 1, $ 55,057 $ 1,090,450 $ 1,891,246 $ 318,340 $ (338,145 ) $ 3,016,948 2021

Totalcomprehensive - - 92,643 (149,143 ) - (56,500 )income (loss)

Dividends($0.32 per - - (15,571 ) - - (15,571 )share)

Purchase oftreasury - - - - (4,027 ) (4,027 )stock

Issuances ofequityawards, net - (4,043 ) - - 4,738 695 offorfeitures

Recognitionof - 4,457 - - - 4,457 equity-basedcompensation

Sale oftreasury - 65 - - 86 151 stock

Exercise of - 2,738 - - 9,348 12,086 stock options

Balance -March 31, $ 55,057 $ 1,093,667 $ 1,968,318 $ 169,197 $ (328,000 ) $ 2,958,239 2021

Average Balances / Yields and Rates

UMB Financial Corporation

(tax - equivalent basis)

(unaudited, dollars in thousands)

Three Months Ended March 31,

2021

2020

Average

Average

Average

Average

Balance

Yield/Rate

Balance

Yield/Rate

Assets

Loans, net of unearned interest

$

16,246,093

3.75

%

$

13,616,566

4.46

%

Securities:

Taxable

6,398,188

1.72

4,694,418

2.33

Tax-exempt

4,301,256

2.98

4,063,042

3.05

Total securities

10,699,444

2.23

8,757,460

2.67

Federal funds and resell agreements

1,643,894

0.70

1,224,196

1.79

Interest bearing due from banks

2,823,771

0.10

826,963

1.30

Trading securities

17,540

4.30

48,102

5.84

Total earning assets

31,430,742

2.74

24,473,287

3.58

Allowance for credit losses

(219,672

)

(112,751

)

Other assets

1,841,224

1,679,390

Total assets

$

33,052,294

$

26,039,926

Liabilities and Shareholders' Equity

Interest-bearing deposits

$

17,072,344

0.16

%

$

14,330,150

0.83

%

Federal funds and repurchase agreements

2,519,373

0.30

2,030,385

1.26

Borrowed funds

269,576

4.78

70,647

7.73

Total interest-bearing liabilities

19,861,293

0.24

16,431,182

0.92

Noninterest-bearing demand deposits

9,753,680

6,495,611

Other liabilities

445,777

392,181

Shareholders' equity

2,991,544

2,720,952

Total liabilities and shareholders' equity

$

33,052,294

$

26,039,926

Net interest spread

2.50

%

2.66

%

Net interest margin

2.59

2.97

Average Balances / Yields UMB Financial Corporationand Rates

(tax - equivalent basis)

(unaudited, dollars in thousands)

Three Months Ended March 31,

2021 2020

Average Average Average Average

Balance Yield/ Balance Yield/ Rate Rate

Assets

Loans, net of unearned $ 16,246,093 3.75 % $ 13,616,566 4.46 %interest

Securities:

Taxable 6,398,188 1.72 4,694,418 2.33

Tax-exempt 4,301,256 2.98 4,063,042 3.05

Total securities 10,699,444 2.23 8,757,460 2.67

Federal funds and resell 1,643,894 0.70 1,224,196 1.79 agreements

Interest bearing due from 2,823,771 0.10 826,963 1.30 banks

Trading securities 17,540 4.30 48,102 5.84

Total earning assets 31,430,742 2.74 24,473,287 3.58

Allowance for credit (219,672 ) (112,751 ) losses

Other assets 1,841,224 1,679,390

Total assets $ 33,052,294 $ 26,039,926



Liabilities and Shareholders' Equity

Interest-bearing deposits $ 17,072,344 0.16 % $ 14,330,150 0.83 %

Federal funds and 2,519,373 0.30 2,030,385 1.26 repurchase agreements

Borrowed funds 269,576 4.78 70,647 7.73

Total interest-bearing 19,861,293 0.24 16,431,182 0.92 liabilities

Noninterest-bearing demand 9,753,680 6,495,611 deposits

Other liabilities 445,777 392,181

Shareholders' equity 2,991,544 2,720,952

Total liabilities and $ 33,052,294 $ 26,039,926 shareholders' equity

Net interest spread 2.50 % 2.66 %

Net interest margin 2.59 2.97

Business Segment Information

UMB Financial Corporation

(unaudited, dollars in thousands)

Three Months Ended March 31, 2021

Commercial Banking

Institutional Banking

Personal Banking

Total

Net interest income

$

133,032

$

22,138

$

38,945

$

194,115

Provision for credit losses

(8,182

)

220

462

(7,500

)

Noninterest income

7,385

68,421

33,091

108,897

Noninterest expense

65,645

71,282

64,019

200,946

Income before taxes

82,954

19,057

7,555

109,566

Income tax expense

12,813

2,943

1,167

16,923

Net income

$

70,141

$

16,114

$

6,388

$

92,643

Three Months Ended March 31, 2020

Commercial Banking

Institutional Banking

Personal Banking

Total

Net interest income

$

106,948

$

33,036

$

33,957

$

173,941

Provision for credit losses

82,220

275

5,505

88,000

Noninterest income

11,240

61,952

25,232

98,424

Noninterest expense

59,043

68,453

61,123

188,619

(Loss) income before taxes

(23,075

)

26,260

(7,439

)

(4,254

)

Income tax (benefit) expense

(4,421

)

5,032

(1,426

)

(815

)

Net (loss) income

$

(18,654

)

$

21,228

$

(6,013

)

$

(3,439

)

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 March 31, 2021.

Non-GAAP Financial Measures

Business Segment UMB Financial CorporationInformation

(unaudited, dollars in thousands)

Three Months Ended March 31, 2021

Commercial Institutional Personal Total Banking Banking Banking

Net interest income $ 133,032 $ 22,138 $ 38,945 $ 194,115

Provision for credit (8,182 ) 220 462 (7,500 )losses

Noninterest income 7,385 68,421 33,091 108,897

Noninterest expense 65,645 71,282 64,019 200,946

Income before taxes 82,954 19,057 7,555 109,566

Income tax expense 12,813 2,943 1,167 16,923

Net income $ 70,141 $ 16,114 $ 6,388 $ 92,643



Three Months Ended March 31, 2020

Commercial Institutional Personal Total Banking Banking Banking

Net interest income $ 106,948 $ 33,036 $ 33,957 $ 173,941

Provision for credit 82,220 275 5,505 88,000 losses

Noninterest income 11,240 61,952 25,232 98,424

Noninterest expense 59,043 68,453 61,123 188,619

(Loss) income before taxes (23,075 ) 26,260 (7,439 ) (4,254 )

Income tax (benefit) (4,421 ) 5,032 (1,426 ) (815 )expense

Net (loss) income $ (18,654 ) $ 21,228 $ (6,013 ) $ (3,439 )



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 March 31, 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 March 31,

2021 2020

Net income (loss) (GAAP) $ 92,643 $ (3,439 )

Adjustments:

Acquisition expense - 123

Severance expense 21 1,652

COVID-19 related expense 155 228

Tax-impact of adjustments (i) (39 ) (445 )

Total Non-GAAP adjustments (net of tax) 137 1,558

Net operating income (loss) (Non-GAAP) $ 92,780 $ (1,881 )



Earnings (losses) per share - diluted (GAAP) $ 1.91 $ (0.07 )

Acquisition expense - -

Severance expense - 0.04

COVID-19 related expense - -

Tax-impact of adjustments (i) - (0.01 )

Operating earnings (losses) per share - diluted $ 1.91 $ (0.04 )(Non-GAAP)



GAAP

Return on average assets 1.14 % (0.05 )%

Return on average equity 12.56 (0.51 )



Non-GAAP

Operating return on average assets 1.14 % (0.03 )%

Operating return on average equity 12.58 (0.28 )

(i)

Calculated using the company's marginal tax rate of 22.2%.

(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 March 31,

2021

2020

Noninterest expense

$

200,946

$

188,619

Adjustments to arrive at operating noninterest expense (pre-tax):

Acquisition expense

-

123

Severance expense

21

1,652

COVID-19 related expense

155

228

Total Non-GAAP adjustments (pre-tax)

176

2,003

Operating noninterest expense (Non-GAAP)

$

200,770

$

186,616

Noninterest expense

$

200,946

$

188,619

Less: Amortization of other intangibles

1,380

1,734

Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A)

$

199,566

$

186,885

Operating noninterest expense

$

200,770

$

186,616

Less: Amortization of other intangibles

1,380

1,734

Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B)

$

199,390

$

184,882

Net interest income

$

194,115

$

173,941

Noninterest income

108,897

98,424

Less: Gains on sales of securities available for sale, net

2,720

1,227

Total Non-GAAP Revenue (denominator A)

$

300,292

$

271,138

Efficiency ratio (numerator A/denominator A)

66.46

%

68.93

%

Operating efficiency ratio (Non-GAAP) (numerator B/denominator A)

66.40

68.19

Operating noninterest expense and operating UMB Financial Corporationefficiency ratio Non-GAAP reconciliations:

(unaudited, dollars in thousands)

Three Months Ended March 31,

2021 2020

Noninterest expense $ 200,946 $ 188,619

Adjustments to arrive at operating noninterest expense (pre-tax):

Acquisition expense - 123

Severance expense 21 1,652

COVID-19 related expense 155 228

Total Non-GAAP adjustments (pre-tax) 176 2,003

Operating noninterest expense (Non-GAAP) $ 200,770 $ 186,616



Noninterest expense $ 200,946 $ 188,619

Less: Amortization of other intangibles 1,380 1,734

Noninterest expense, net of amortization of other $ 199,566 $ 186,885 intangibles (Non-GAAP) (numerator A)



Operating noninterest expense $ 200,770 $ 186,616

Less: Amortization of other intangibles 1,380 1,734

Operating expense, net of amortization of other $ 199,390 $ 184,882 intangibles (Non-GAAP) (numerator B)



Net interest income $ 194,115 $ 173,941

Noninterest income 108,897 98,424

Less: Gains on sales of securities available for 2,720 1,227 sale, net

Total Non-GAAP Revenue (denominator A) $ 300,292 $ 271,138



Efficiency ratio (numerator A/denominator A) 66.46 % 68.93 %

Operating efficiency ratio (Non-GAAP) (numerator B/ 66.40 68.19 denominator A)

Pre-tax, pre-provision income non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

Three Months Ended March 31,

2021

2020

Net income (loss) before taxes (GAAP)

$

109,566

$

(4,254

)

Adjustments:

Provision for credit losses

(7,500

)

88,000

Pre-tax, pre-provision income (Non-GAAP)

$

102,066

$

83,746

Pre-tax earnings (losses) per share - diluted (GAAP)

$

2.26

$

(0.09

)

Provision for credit losses

(0.16

)

1.81

Pre-tax, pre-provision earnings per share - diluted (Non-GAAP)

$

2.10

$

1.72

Pre-tax, pre-provision income non-GAAP UMB Financialreconciliations: Corporation

(unaudited, dollars in thousands except per share data)

Three Months Ended March 31,

2021 2020

Net income (loss) before taxes (GAAP) $ 109,566 $ (4,254 )

Adjustments:

Provision for credit losses (7,500 ) 88,000

Pre-tax, pre-provision income (Non-GAAP) $ 102,066 $ 83,746



Pre-tax earnings (losses) per share - diluted (GAAP) $ 2.26 $ (0.09 )

Provision for credit losses (0.16 ) 1.81

Pre-tax, pre-provision earnings per share - diluted $ 2.10 $ 1.72 (Non-GAAP)

Pre-tax, pre-provision income - FTE Non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

Three Months Ended March 31,

2021

2020

Net interest income

$

194,115

$

173,941

Adjustments to arrive at net interest income - FTE:

Tax equivalent interest

6,678

6,478

Net interest income - FTE

$

200,793

$

180,419

Noninterest income

108,897

98,424

Less: Noninterest expense

200,946

188,619

Pre-tax, pre-provision income - FTE (Non-GAAP)

$

108,744

$

90,224

Net interest income earnings per share - diluted

$

4.00

$

3.57

Tax equivalent interest

0.14

0.13

Net interest income - FTE

4.14

3.70

Noninterest income

2.24

2.02

Less: Noninterest expense

4.14

3.87

Pre-tax, pre-provision income - FTE earnings per share - diluted (Non-GAAP)

$

2.24

$

1.85

Pre-tax, pre-provision income - FTE Non-GAAP UMB Financialreconciliations: Corporation

(unaudited, dollars in thousands except per share data)

Three Months Ended March 31,

2021 2020

Net interest income $ 194,115 $ 173,941

Adjustments to arrive at net interest income - FTE:

Tax equivalent interest 6,678 6,478

Net interest income - FTE $ 200,793 $ 180,419

Noninterest income 108,897 98,424

Less: Noninterest expense 200,946 188,619

Pre-tax, pre-provision income - FTE (Non-GAAP) $ 108,744 $ 90,224



Net interest income earnings per share - diluted $ 4.00 $ 3.57

Tax equivalent interest 0.14 0.13

Net interest income - FTE 4.14 3.70

Noninterest income 2.24 2.02

Less: Noninterest expense 4.14 3.87

Pre-tax, pre-provision income - FTE earnings per share $ 2.24 $ 1.85- diluted (Non-GAAP)

Tangible book value non-GAAP reconciliations:

UMB Financial Corporation

(unaudited, dollars in thousands except share and per share data)

As ofMarch 31,

2021

2020

Total shareholders' equity (GAAP)

$

2,958,239

$

2,663,441

Less: Intangible assets

Goodwill

174,518

180,867

Other intangibles, net

17,793

25,839

Total intangibles, net

192,311

206,706

Total tangible shareholders' equity (Non-GAAP)

$

2,765,928

$

2,456,735

Total shares outstanding

48,302,634

48,134,601

Ratio of total shareholders' equity (book value) per share

$

61.24

$

55.33

Ratio of total tangible shareholders' equity (tangible book value) per share (Non-GAAP)

57.26

51.04

View source version on businesswire.com: https://www.businesswire.com/news/home/20210427005120/en/

CONTACT: Media Contact: Stephanie Hague: 816.860.5088 Investor Relations Contact: Kay Gregory: 816.860.7106