Business Wire | Jan 25, 2022 04:15PM EST

UMB Financial Corporation Reports Fourth Quarter Net Income of $78.5 Million and Record Full-Year Earnings of $353.0 Million

Jan. 25, 2022

KANSAS CITY, Mo.--(BUSINESS WIRE)--Jan. 25, 2022--UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the fourth quarter of 2021 of $78.5 million, or $1.61 per diluted share, compared to $94.5 million, or $1.94 per diluted share, in the third quarter of 2021 (linked quarter) and $156.3 million, or $3.24 per diluted share, in the fourth quarter of 2020. Results for the fourth quarter and full-year 2020 include a pre-tax gain of $108.8 million on the company's investment in Tattooed Chef, Inc. (TTCF).

Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $78.9 million, or $1.62 per diluted share, for the fourth quarter of 2021, compared to $95.1 million, or $1.95 per diluted share, for the linked quarter and $157.4 million, or $3.26 per diluted share, for the fourth quarter of 2020. 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 $113.4 million, or $2.32 per diluted share, for the fourth quarter of 2021, compared to $115.3 million, or $2.37 per diluted share, for the linked quarter, and $202.9 million, or $4.20 per diluted share, for the fourth quarter of 2020. These PTPP-FTE results represent decreases of 1.7% on a linked-quarter basis and 44.1% compared to the fourth quarter of 2020.

"Notwithstanding higher-than typical operating expenses tied to profitable business growth, charitable contributions, and timing of other investments in the fourth quarter, our teams executed and delivered exceptional operating and financial results in 2021 through strong growth on both sides of the balance sheet, strong asset quality metrics and continued build-out of our differentiated fee generation businesses," said Mariner Kemper, chairman, president and chief executive officer. "UMB is positioned to benefit even further from anticipated economic expansion, higher interest rates, our diversified fee income businesses and the franchise investments we are making. In 2021, fee income momentum in our various businesses was offset on a year-over-year basis by the 2020 gain on our investment in Tattooed Chef and ongoing market-related adjustments. Average loans excluding PPP loan balances increased an impressive 12.3%. Average deposits increased 24.8%, including a 43.5% increase in interest-free demand deposit balances. Finally, in January, we pursued and executed the sale of our small, acquired factoring portfolio to an alternative financing company."

Fourth Quarter 2021 earnings discussion

Summary of quarterly financial results UMB Financial Corporation

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

Q4 Q3 Q4

2021 2021 2020

Net income (GAAP) $ 78,496 $ 94,467 $ 156,320

Earnings per share (diluted) 1.61 1.94 3.24



Pre-tax, pre-provision income (Non-GAAP) 106,869 108,803 196,107

Pre-tax, pre-provision earnings per share 2.19 2.23 4.06 (diluted)



Pre-tax, pre-provision income - FTE 113,352 115,347 202,946 (Non-GAAP)

Pre-tax, pre-provision earnings per share 2.32 2.37 4.20 - FTE (diluted)



Net operating income (Non-GAAP) 78,921 95,112 157,405

Operating earnings per share (diluted) 1.62 1.95 3.26



GAAP

Return on average assets 0.82 % 1.04 % 2.03 %

Return on average equity 9.91 11.89 21.18

Efficiency ratio 67.78 65.62 53.44



Non-GAAP

Operating return on average assets 0.82 % 1.05 % 2.05 %

Operating return on average equity 9.97 11.97 21.33

Operating efficiency ratio 67.61 65.36 53.11

Summary of revenue

UMB Financial Corporation

(unaudited, dollars in thousands)

Q4

Q3

Q4

CQ vs.

CQ vs.

2021

2021

2020

LQ

PY

Net interest income

$

210,570

$

209,765

$

194,675

$

805

$

15,895

Noninterest income:

Trust and securities processing

58,515

56,914

50,773

1,601

7,742

Trading and investment banking

6,977

5,936

9,693

1,041

(2,716

)

Service charges on deposit accounts

21,607

19,881

20,074

1,726

1,533

Insurance fees and commissions

359

285

318

74

41

Brokerage fees

3,346

2,899

3,918

447

(572

)

Bankcard fees

16,642

17,198

15,788

(556

)

854

Investment securities gains (losses), net

1,448

(3,510

)

113,010

4,958

(111,562

)

Other

9,888

8,304

14,716

1,584

(4,828

)

Total noninterest income

$

118,782

$

107,907

$

228,290

$

10,875

$

(109,508

)

Total revenue

$

329,352

$

317,672

$

422,965

$

11,680

$

(93,613

)

Net interest income (FTE)

$

217,053

$

216,309

$

201,514

Net interest margin (FTE)

2.37

%

2.52

%

2.78

%

Total noninterest income as a % of total revenue

36.07

33.97

53.97

Net interest income

* Net interest income totaled $210.6 million, which is an increase of $0.8 million as compared to the linked quarter. The benefit from growth in average earning assets was partially offset by $4.0 million in reduced income from PPP loans. Average earning assets increased $2.2 billion, or 6.4%, driven by an increase in liquidity and investment securities purchases, while noninterest-bearing deposits increased $1.7 billion, or 15.1% and interest-bearing liabilities increased $499.1 million, or 2.4%. * Net interest margin for the fourth quarter was 2.37%, a decrease of 15 basis points from the linked quarter, driven in large part by earning asset mix shift in favor of lower-yielding liquidity balances. Earning asset yields declined 16 basis points from the linked quarter, driven by an eight-basis-point decline in loan yields and mix changes. The cost of interest-bearing liabilities decreased two basis points to 0.20%. Net interest spread decreased 14 basis points to 2.29% from the linked quarter and was 39 basis points lower than the fourth quarter of 2020. * On a year-over-year basis, net interest income increased $15.9 million, or 8.2%, driven by a $2.6 billion, or 25.5% increase in average securities, coupled with a $651.6 million, or 4.1%, increase in average loans. 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 26.7% compared to the fourth quarter of 2020. Average noninterest-bearing demand deposit balances increased 15.1% on a linked-quarter basis and 46.7% compared to the fourth quarter of 2020.

Noninterest income

* Fourth quarter 2021 noninterest income increased $10.9 million, or 10.1%, on a linked-quarter basis, largely due to: An increase of $3.3 million in the company's equity investments, and an increase of $1.7 million in gains on sales of available-for-sale securities, both recorded in investment securities gains. An increase of $3.2 million in derivative income, recorded in other income. An increase of $1.7 million in service charges on deposits primarily driven by an increase of $0.9 million in healthcare income related to customer transfer and conversion fees and increased corporate service charge income. Increases of $1.6 million in trust and securities processing and $1.0 million in trading and investment banking. The increase in trust and securities processing income is primarily due to an increase of $1.0 million in fund services income driven by higher levels of assets administered and $0.6 million in corporate trust income. The increase in trading and investment banking income is driven by increased trading volume. These increases were partially offset by a decrease of $1.6 million in company owned life insurance income, recorded in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below. * Compared to the prior year, noninterest income in the fourth quarter of 2021 decreased $109.5 million, or 48.0%, primarily driven by: A decrease of $111.6 million in investment securities gains, primarily due to mark-to-market valuations on the company's equity investment in TTCF. The fourth quarter of 2020 included a pre-tax gain on TTCF of $108.8 million. A decrease of $6.4 million in company-owned life insurance income, recorded in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below. A $2.7 million decrease in trading and investment banking due to decreased trading volumes. These decreases were partially offset by an increase of $7.7 million in trust and securities processing income, an increase of $1.9 million in derivative income, recorded in other income, and an increase of $1.5 million in service charges on deposits. The increase in trust and securities processing was driven by an increase of $8.6 million in fund services income tied to higher levels of assets administered, and an increase of $1.3 million in corporate trust income, partially offset by a decrease of $2.1 million in trust services income.

Noninterest expense

Summary of UMB Financial Corporation revenue

(unaudited,dollars in thousands)

Q4 Q3 Q4 CQ vs. CQ vs.

2021 2021 2020 LQ PY

Net interest $ 210,570 $ 209,765 $ 194,675 $ 805 $ 15,895 income

Noninterest income:

Trust andsecurities 58,515 56,914 50,773 1,601 7,742 processing

Trading andinvestment 6,977 5,936 9,693 1,041 (2,716 )banking

Servicecharges on 21,607 19,881 20,074 1,726 1,533 depositaccounts

Insurancefees and 359 285 318 74 41 commissions

Brokerage 3,346 2,899 3,918 447 (572 )fees

Bankcard fees 16,642 17,198 15,788 (556 ) 854

Investmentsecurities 1,448 (3,510 ) 113,010 4,958 (111,562 )gains(losses), net

Other 9,888 8,304 14,716 1,584 (4,828 )

Totalnoninterest $ 118,782 $ 107,907 $ 228,290 $ 10,875 $ (109,508 )income

Total revenue $ 329,352 $ 317,672 $ 422,965 $ 11,680 $ (93,613 )

Net interest $ 217,053 $ 216,309 $ 201,514 income (FTE)

Net interest 2.37 % 2.52 % 2.78 % margin (FTE)

Totalnoninterestincome as a % 36.07 33.97 53.97 of totalrevenue

Net interest income

* Net interest income totaled $210.6 million, which is an increase of $0.8 million as compared to the linked quarter. The benefit from growth in average earning assets was partially offset by $4.0 million in reduced income from PPP loans. Average earning assets increased $2.2 billion, or 6.4%, driven by an increase in liquidity and investment securities purchases, while noninterest-bearing deposits increased $1.7 billion, or 15.1% and interest-bearing liabilities increased $499.1 million, or 2.4%. * Net interest margin for the fourth quarter was 2.37%, a decrease of 15 basis points from the linked quarter, driven in large part by earning asset mix shift in favor of lower-yielding liquidity balances. Earning asset yields declined 16 basis points from the linked quarter, driven by an eight-basis-point decline in loan yields and mix changes. The cost of interest-bearing liabilities decreased two basis points to 0.20%. Net interest spread decreased 14 basis points to 2.29% from the linked quarter and was 39 basis points lower than the fourth quarter of 2020. * On a year-over-year basis, net interest income increased $15.9 million, or 8.2%, driven by a $2.6 billion, or 25.5% increase in average securities, coupled with a $651.6 million, or 4.1%, increase in average loans. 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 26.7% compared to the fourth quarter of 2020. Average noninterest-bearing demand deposit balances increased 15.1% on a linked-quarter basis and 46.7% compared to the fourth quarter of 2020.

Noninterest income

* Fourth quarter 2021 noninterest income increased $10.9 million, or 10.1%, on a linked-quarter basis, largely due to: An increase of $3.3 million in the company's equity investments, and an increase of $1.7 million in gains on sales of available-for-sale securities, both recorded in investment securities gains. An increase of $3.2 million in derivative income, recorded in other income. An increase of $1.7 million in service charges on deposits primarily driven by an increase of $0.9 million in healthcare income related to customer transfer and conversion fees and increased corporate service charge income. Increases of $1.6 million in trust and securities processing and $1.0 million in trading and investment banking. The increase in trust and securities processing income is primarily due to an increase of $1.0 million in fund services income driven by higher levels of assets administered and $0.6 million in corporate trust income. The increase in trading and investment banking income is driven by increased trading volume. These increases were partially offset by a decrease of $1.6 million in company owned life insurance income, recorded in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below. * Compared to the prior year, noninterest income in the fourth quarter of 2021 decreased $109.5 million, or 48.0%, primarily driven by: A decrease of $111.6 million in investment securities gains, primarily due to mark-to-market valuations on the company's equity investment in TTCF. The fourth quarter of 2020 included a pre-tax gain on TTCF of $108.8 million. A decrease of $6.4 million in company-owned life insurance income, recorded in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below. A $2.7 million decrease in trading and investment banking due to decreased trading volumes. These decreases were partially offset by an increase of $7.7 million in trust and securities processing income, an increase of $1.9 million in derivative income, recorded in other income, and an increase of $1.5 million in service charges on deposits. The increase in trust and securities processing was driven by an increase of $8.6 million in fund services income tied to higher levels of assets administered, and an increase of $1.3 million in corporate trust income, partially offset by a decrease of $2.1 million in trust services income.

Noninterest expense

Summary ofnoninterest UMB Financial Corporation expense

(unaudited,dollars in thousands)

Q4 Q3 Q4 CQ vs. CQ vs.

2021 2021 2020 LQ PY

Salaries andemployee $ 131,360 $ 124,986 $ 129,272 $ 6,374 $ 2,088 benefits

Occupancy, net 10,907 12,207 11,858 (1,300 ) (951 )

Equipment 19,886 19,701 22,008 185 (2,122 )

Supplies and 4,646 3,379 4,125 1,267 521 services

Marketing andbusiness 6,528 4,863 3,717 1,665 2,811 development

Processing 19,083 16,562 14,408 2,521 4,675 fees

Legal and 10,858 7,646 10,191 3,212 667 consulting

Bankcard 4,865 4,795 4,711 70 154

Amortizationof other 1,110 1,110 1,601 - (491 )intangibleassets

Regulatory 3,393 3,186 2,393 207 1,000 fees

Other 9,847 10,434 22,574 (587 ) (12,727 )

Totalnoninterest $ 222,483 $ 208,869 $ 226,858 $ 13,614 $ (4,375 )expense

* Noninterest expense for the fourth quarter of 2021 was $222.5 million, an increase of $13.6 million, or 6.5%, from the linked quarter and a decrease of $4.4 million, or 1.9%, from the fourth quarter of 2020. * The linked-quarter increase in noninterest expense was driven by: An increase of $7.3 million in salaries and bonus expense, recorded in salaries and employee benefits, driven primarily by increased incentive compensation tied to business growth and higher overall company performance. Increases of $3.2 million in legal and consulting expense and $1.7 million in marketing and business development due to the timing of multiple projects. An increase of $2.5 million in processing fees, due to timing of software projects and an increase of $2.1 million in charitable contributions expense, recorded in other expense. These increases were partially offset by decreases of $2.5 million in operational losses, recorded in other expense, and $0.9 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. * The year-over-year decrease in noninterest expense was driven by: A decrease of $13.8 million in operational losses, recorded in other expense. A decrease of $4.5 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. These decreases were partially offset by the following increases: Increases of $4.7 million in processing fees and $2.8 million in marketing and business development due to the timing of multiple software projects and marketing campaigns, respectively. An increase of $4.5 million in salaries and bonus expense, recorded in salaries and employee benefits, driven primarily by increased incentive compensation tied to business growth and higher overall company performance. An increase of $2.1 million in charitable contributions expense, recorded in other expense.

Full year 2021 earnings discussion

Net income for the year ended December 31, 2021 was $353.0 million, or $7.24 per diluted share, compared to $286.5 million, or $5.93 per diluted share in 2020. Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $354.4 million, or $7.27 per diluted share, compared to $295.8 million, or $6.12 per diluted share in 2020. These results represent increases of 23.2% and 19.8%, respectively.

Summary of year-to-date financial results UMB Financial Corporation

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

YTD YTD

2021 2020

Net income (GAAP) $ 353,018 $ 286,502

Earnings per share (diluted) 7.24 5.93



Pre-tax, pre-provision income (Non-GAAP) 449,060 469,390

Pre-tax, pre-provision earnings per share (diluted) 9.21 9.71



Pre-tax, pre-provision income - FTE (Non-GAAP) 475,394 496,108

Pre-tax, pre-provision earnings per share - FTE 9.75 10.26 (diluted)



Net operating income (Non-GAAP) 354,446 295,793

Operating earnings per share (diluted) 7.27 6.12



GAAP

Return on average assets 1.00 % 1.00 %

Return on average equity 11.43 10.21

Efficiency ratio 65.02 63.49



Non-GAAP

Operating return on average assets 1.00 % 1.04 %

Operating return on average equity 11.47 10.55

Operating efficiency ratio 64.87 62.56

* Net interest income increased $84.3 million, or 11.5%, year-over-year due to a $6.7 billion increase in earning assets, primarily driven by increased volume in the company's investment portfolio, strong organic loan growth and the company's participation in the PPP. This growth was partially offset by the impact of lower short-term and long-term interest rates. In 2021, average securities increased $2.2 billion and average loan balances increased $1.5 billion. Average interest-bearing liabilities increased $3.1 billion, while the cost of interest-bearing liabilities declined 22 basis points. * Full-year noninterest income decreased $93.0 million, or 16.6%, due to: A decrease of $115.6 million in investment securities gains. 2020 included a pre-tax gain of $108.8 million on the company's investment in TTCF, compared to a pre-tax loss of $15.4 million in 2021. A decrease of $12.2 million in brokerage fees, primarily driven by lower 12b-1 and money market income. A decrease of $3.8 million in trust income, recorded in trust and securities processing. These decreases were partially offset by the following increases: Increases of $27.5 million in fund services income driven by higher levels of assets administered and $5.8 million in corporate trust revenue, both recorded in trust and securities processing. An increase of $4.0 million in bankcard income, due to higher interchange revenue, offset by increased rebates and rewards expense. * Full-year noninterest expense increased $11.6 million, or 1.4%, primarily due to: A $13.4 million increase in processing fees driven by the timing of multiple software projects. An increase of $9.0 million in salary and employee benefit expense driven primarily by increased bonus and sales commission expense tied to business volumes, revenue growth, and overall company performance. Increases of $3.9 million and $2.6 million in marketing and business development and legal and consulting expense, respectively, due to the timing of multiple projects. An increase of $3.9 million in charitable contributions expense, recorded in other expense. These increases were partially offset by a decrease of $14.1 million in operational losses, recorded in other expense, and a decrease of $7.3 million in equipment expense due to lower software amortization expense.

Income taxes

* The company's effective tax rate was 17.7% for the year ended December 31, 2021, compared to 15.5% for the same period in 2020. The increase in the effective tax rate for 2021 is primarily attributable to a smaller portion of income being earned from tax-exempt municipal securities and higher state and local income taxes.

Balance sheet

* Average total assets for the fourth quarter of 2021 were $38.1 billion compared to $35.9 billion for the linked quarter and $30.6 billion for the same period in 2020.

Summary of average loans and leases - QTD UMB Financial Corporation Average

(unaudited,dollars in thousands)

Q4 Q3 Q4 CQ vs. CQ vs.

2021 2021 2020 LQ PY

Commercialand $ 6,994,935 $ 7,097,248 $ 7,079,646 $ (102,313 ) $ (84,711 )industrial

Specialty 484,552 486,021 506,225 (1,469 ) (21,673 )lending

Commercial 6,218,138 6,285,348 5,847,439 (67,210 ) 370,699 real estate

Consumer 2,272,498 2,178,010 1,903,892 94,488 368,606 real estate

Consumer 107,841 115,702 128,350 (7,861 ) (20,509 )

Credit 414,267 400,189 382,166 14,078 32,101 cards

Leases and 200,417 194,235 193,363 6,182 7,054 other

Total loans $ 16,692,648 $ 16,756,753 $ 16,041,081 $ (64,105 ) $ 651,567

* Average loans for the fourth quarter of 2021 decreased 0.4% on a linked-quarter basis and increased 4.1% compared to the fourth quarter of 2020 primarily due to the company's participation in the PPP. Excluding PPP balances, average loans increased 1.4% on a linked-quarter basis.

Summary ofaverage UMB Financial Corporation securities - QTDAverage

(unaudited,dollars in thousands)

Q4 Q3 Q4 CQ vs. CQ vs.

2021 2021 2020 LQ PY

Securitiesavailable for sale:

U.S. Treasury $ 69,398 $ 17,903 $ 30,778 $ 51,495 $ 38,620

U.S. Agencies 93,619 94,049 96,082 (430 ) (2,463 )

Mortgage-backed 7,395,528 6,766,619 5,053,821 628,909 2,341,707

State andpolitical 3,437,841 3,530,031 3,600,704 (92,190 ) (162,863 )subdivisions

Corporates 236,743 158,326 76,870 78,417 159,873

Collateralized 38,099 - - 38,099 38,099 loan obligations

Total securitiesavailable for $ 11,271,228 $ 10,566,928 $ 8,858,255 $ 704,300 $ 2,412,973 sale

Securities held to maturity:

State andpolitical $ 1,089,587 $ 1,073,133 $ 1,045,640 $ 16,454 $ 43,947 subdivisions

Mortgage-backed 105,622 - - 105,622 105,622

Total securities $ 1,195,209 $ 1,073,133 $ 1,045,640 $ 122,076 $ 149,569 held to maturity

Trading 29,426 25,392 29,659 4,034 (233 )securities

Other securities 299,829 262,453 267,445 37,376 32,384

Total securities $ 12,795,692 $ 11,927,906 $ 10,200,999 $ 867,786 $ 2,594,693

* Average securities available for sale increased 6.7% on a linked-quarter basis and 27.2% compared to the fourth quarter of 2020.

Summary of average deposits - QTD UMB Financial CorporationAverage

(unaudited, dollars in thousands)

Q4 Q3 Q4 CQ vs. CQ vs.

2021 2021 2020 LQ PY

Deposits:

Noninterest-bearing $ 13,124,918 $ 11,400,143 $ 8,947,389 $ 1,724,775 $ 4,177,529 demand

Interest-bearing 17,809,817 17,376,135 15,250,236 433,682 2,559,581 demand and savings

Time deposits 701,836 651,727 767,755 50,109 (65,919 )

Total deposits $ 31,636,571 $ 29,428,005 $ 24,965,380 $ 2,208,566 $ 6,671,191

Noninterest bearingdeposits as % of 41.49 % 38.74 % 35.84 % total

* Average deposits increased 7.5% on a linked-quarter basis and 26.7% compared to the fourth quarter of 2020. * Average noninterest-bearing demand deposits increased 15.1% on a linked-quarter basis to $13.1 billion.

Capital

Capital information UMB Financial Corporation

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

December September December 31, 30, 31, 2021 2021 2020

Total equity $ 3,145,424 $ 3,112,840 $ 3,016,948

Book value per common share 64.95 64.37 62.84

Tangible book value per common 61.05 60.44 58.64 share



Regulatory capital:

Common equity Tier 1 capital $ 2,885,576 $ 2,811,117 $ 2,547,634

Tier 1 capital 2,885,576 2,811,117 2,547,634

Total capital 3,324,284 3,248,869 3,002,545



Regulatory capital ratios:

Common equity Tier 1 capital 12.05 % 12.26 % 12.10 %ratio

Tier 1 risk-based capital ratio 12.05 12.26 12.10

Total risk-based capital ratio 13.88 14.17 14.26

Tier 1 leverage ratio 7.61 7.87 8.37

* At December 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)

Q4 Q3 Q2 Q1 Q4

2021 2021 2021 2021 2020

Net charge-offs $ 8,061 $ 3,127 $ 28,374 $ 5,310 $ 1,801 - Total loans

Net loancharge-offs as a 0.19 % 0.07 % 0.68 % 0.13 % 0.04 %% of totalaverage loans

Loans over 90 $ 2,633 $ 2,319 $ 1,265 $ 1,773 $ 1,952 days past due

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

Nonaccrual andrestructured $ 92,300 $ 96,536 $ 58,219 $ 76,706 $ 87,823 loans

Nonaccrual andrestructured 0.54 % 0.59 % 0.34 % 0.46 % 0.55 %loans as a % oftotal loans

Provision for $ 8,500 $ (5,000 ) $ 24,000 $ (7,500 ) $ 5,000 credit losses

* Provision for credit losses for the fourth quarter totaled $8.5 million, an increase of $13.5 million from the linked quarter and an increase of $3.5 million from the fourth quarter of 2020. The fourth quarter provision expense is commensurate with the increases of $701.4 million and $1.1 billion in period-end loan balances as compared to the linked quarter and the fourth quarter of 2020, respectively, as well as considerations for portfolio changes and various macro-economic factors. Provision expense in the third quarter of 2021 represented a release of the Allowance for Credit Losses (ACL) based on positive macro-economic data and portfolio credit metrics. * Net charge-offs for the fourth quarter totaled $8.1 million, or 0.19%, of average loans, compared to $3.1 million, or 0.07%, of average loans in the linked quarter, and $1.8 million, or 0.04%, of average loans for the fourth quarter of 2020.

Dividend Declaration

At the company's quarterly board meeting, the Board of Directors declared a $0.37 per share quarterly cash dividend, payable on April 1, 2022, to shareholders of record at the close of business on March 10, 2022.

Conference Call

The company plans to host a conference call to discuss its fourth quarter 2021 earnings results on Wednesday, January 26, 2022, 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 4Q 2021 Conference Call

A replay of the conference call may be heard through February 9, 2022 by calling (toll-free) 877-344-7529 or (international) 412-317-0088. The replay access code required for playback is 1378406. 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).

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

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

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

Forward-Looking Statements:

This press release contains, and our other communications may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as "believe," "expect," "anticipate," "intend," "estimate," "project," "outlook," "forecast," "target," "trend," "plan," "goal," or other words of comparable meaning or future-tense or conditional verbs such as "may," "will," "should," "would," or "could." Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, results, or aspirations. All forward-looking statements are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Our actual future objectives, strategies, plans, prospects, performance, condition, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events, circumstances, or aspirations to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2020, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (SEC). In addition to such factors that have been disclosed previously, the COVID-19 pandemic (the pandemic) may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. The pandemic has created a global public-health crisis that has resulted in widespread volatility and deteriorations in household, business, economic, and market conditions. It is currently adversely affecting the company and its customers, counterparties, employees, and first-party service providers, and the continued adverse impacts on our business, financial position, results of operations, and prospects could be significant. We are not able to accurately predict the extent of the impact of the pandemic on our capital, liquidity, and other financial positions and on our business, results of operations, and prospects at this time, and we believe it will depend on a number of evolving factors, including: (i) the duration, extent and severity of the pandemic; (ii) the response of governmental and non-governmental authorities to the pandemic, which is rapidly changing and not always coordinated or consistent across jurisdictions; (iii) the effect of the pandemic on our customers, counterparties, employees and first-party service providers, which may vary widely, and which is generally expected to increase our credit, counterparty, operational, and other risks; and (iv) the effect of the pandemic on economies and markets, which in turn could adversely affect, among other things, the origination of new loans and the performance of our existing loans. Any forward-looking statement should be evaluated in light of these considerations. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except to the extent required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC.

About UMB:

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

Consolidated Balance Sheets UMB Financial Corporation

(dollars in thousands)

December 31,

2021 2020

(unaudited) (audited)

ASSETS

Loans $ 17,170,871 $ 16,103,651

Allowance for credit losses on loans (194,771 ) (215,973 )

Net loans 16,976,100 15,887,678

Loans held for sale 1,277 6,708

Securities:

Available for sale 11,976,514 9,299,688

Held to maturity, net of allowance for credit 1,478,476 1,012,004 losses

Trading securities 31,875 35,020

Other securities 327,098 296,053

Total securities 13,813,963 10,642,765

Federal funds sold and resell agreements 1,216,357 1,650,335

Interest-bearing due from banks 8,841,906 3,110,042

Cash and due from banks 413,821 430,638

Premises and equipment, net 270,933 293,095

Accrued income 131,102 139,892

Goodwill 174,518 180,867

Other intangibles, net 14,416 21,056

Other assets 839,091 764,428

Total assets $ 42,693,484 $ 33,127,504



LIABILITIES

Deposits:

Noninterest-bearing demand $ 16,342,642 $ 9,879,970

Interest-bearing demand and savings 18,405,644 16,295,186

Time deposits under $250,000 403,660 477,748

Time deposits of $250,000 or more 447,981 398,347

Total deposits 35,599,927 27,051,251

Federal funds purchased and repurchase 3,238,435 2,315,497 agreements

Long-term debt 271,544 269,595

Accrued expenses and taxes 249,492 319,676

Other liabilities 188,662 154,537

Total liabilities 39,548,060 30,110,556



SHAREHOLDERS' EQUITY

Common stock 55,057 55,057

Capital surplus 1,110,520 1,090,450

Retained earnings 2,176,998 1,891,246

Accumulated other comprehensive income, net 126,314 318,340

Treasury stock (323,465 ) (338,145 )

Total shareholders' equity 3,145,424 3,016,948

Total liabilities and shareholders' equity $ 42,693,484 $ 33,127,504

Consolidated Statements of Income

UMB Financial Corporation

(dollars in thousands except share and per share data)

Three Months Ended

Year Ended

December 31,

December 31,

2021

2020

2021

2020

(unaudited)

(unaudited)

(unaudited)

(audited)

INTEREST INCOME

Loans

$

155,324

$

152,486

$

619,273

$

585,957

Securities:

Taxable interest

37,376

26,226

127,625

105,701

Tax-exempt interest

24,140

25,427

98,305

99,820

Total securities income

61,516

51,653

225,930

205,521

Federal funds and resell agreements

2,286

2,567

10,048

11,840

Interest-bearing due from banks

2,182

384

5,417

3,744

Trading securities

275

202

854

1,427

Total interest income

221,583

207,292

861,522

808,489

INTEREST EXPENSE

Deposits

6,299

7,955

26,412

58,214

Federal funds and repurchase agreements

1,673

1,726

6,934

11,787

Other

3,041

2,936

12,655

7,259

Total interest expense

11,013

12,617

46,001

77,260

Net interest income

210,570

194,675

815,521

731,229

Provision for credit losses

8,500

5,000

20,000

130,500

Net interest income after provision for credit losses

202,070

189,675

795,521

600,729

NONINTEREST INCOME

Trust and securities processing

58,515

50,773

224,126

194,646

Trading and investment banking

6,977

9,693

30,939

32,945

Service charges on deposit accounts

21,607

20,074

86,056

83,879

Insurance fees and commissions

359

318

1,309

1,369

Brokerage fees

3,346

3,918

12,171

24,350

Bankcard fees

16,642

15,788

64,576

60,544

Investment securities gains, net

1,448

113,010

5,057

120,634

Other

9,888

14,716

42,941

41,799

Total noninterest income

118,782

228,290

467,175

560,166

NONINTEREST EXPENSE

Salaries and employee benefits

131,360

129,272

504,442

495,464

Occupancy, net

10,907

11,858

47,345

47,476

Equipment

19,886

22,008

78,398

85,719

Supplies and services

4,646

4,125

14,986

15,537

Marketing and business development

6,528

3,717

18,533

14,679

Processing fees

19,083

14,408

67,563

54,213

Legal and consulting

10,858

10,191

32,406

29,765

Bankcard

4,865

4,711

19,145

18,954

Amortization of other intangible assets

1,110

1,601

4,757

6,517

Regulatory fees

3,393

2,393

11,894

10,279

Other

9,847

22,574

34,167

43,402

Total noninterest expense

222,483

226,858

833,636

822,005

Income before income taxes

98,369

191,107

429,060

338,890

Income tax expense

19,873

34,787

76,042

52,388

NET INCOME

$

78,496

$

156,320

$

353,018

$

286,502

PER SHARE DATA

Net income - basic

$

1.62

$

3.26

$

7.31

$

5.95

Net income - diluted

1.61

3.24

7.24

5.93

Dividends

0.37

0.320

1.38

1.25

Weighted average shares outstanding - basic

48,371,296

47,927,358

48,271,462

48,137,791

Weighted average shares outstanding - diluted

48,854,383

48,264,097

48,738,292

48,343,750

ConsolidatedStatements of UMB Financial Corporation Income

(dollars in thousands except share and per share data)

Three Months Ended Year Ended

December 31, December 31,

2021 2020 2021 2020

(unaudited) (unaudited) (unaudited) (audited)

INTEREST INCOME

Loans $ 155,324 $ 152,486 $ 619,273 $ 585,957

Securities:

Taxable interest 37,376 26,226 127,625 105,701

Tax-exempt 24,140 25,427 98,305 99,820 interest

Total securities 61,516 51,653 225,930 205,521 income

Federal fundsand resell 2,286 2,567 10,048 11,840 agreements

Interest-bearing 2,182 384 5,417 3,744 due from banks

Trading 275 202 854 1,427 securities

Total interest 221,583 207,292 861,522 808,489 income

INTEREST EXPENSE

Deposits 6,299 7,955 26,412 58,214

Federal fundsand repurchase 1,673 1,726 6,934 11,787 agreements

Other 3,041 2,936 12,655 7,259

Total interest 11,013 12,617 46,001 77,260 expense

Net interest 210,570 194,675 815,521 731,229 income

Provision for 8,500 5,000 20,000 130,500 credit losses

Net interestincome after 202,070 189,675 795,521 600,729 provision forcredit losses

NONINTEREST INCOME

Trust andsecurities 58,515 50,773 224,126 194,646 processing

Trading andinvestment 6,977 9,693 30,939 32,945 banking

Service chargeson deposit 21,607 20,074 86,056 83,879 accounts

Insurance fees 359 318 1,309 1,369 and commissions

Brokerage fees 3,346 3,918 12,171 24,350

Bankcard fees 16,642 15,788 64,576 60,544

Investmentsecurities 1,448 113,010 5,057 120,634 gains, net

Other 9,888 14,716 42,941 41,799

Totalnoninterest 118,782 228,290 467,175 560,166 income

NONINTEREST EXPENSE

Salaries andemployee 131,360 129,272 504,442 495,464 benefits

Occupancy, net 10,907 11,858 47,345 47,476

Equipment 19,886 22,008 78,398 85,719

Supplies and 4,646 4,125 14,986 15,537 services

Marketing andbusiness 6,528 3,717 18,533 14,679 development

Processing fees 19,083 14,408 67,563 54,213

Legal and 10,858 10,191 32,406 29,765 consulting

Bankcard 4,865 4,711 19,145 18,954

Amortization ofother intangible 1,110 1,601 4,757 6,517 assets

Regulatory fees 3,393 2,393 11,894 10,279

Other 9,847 22,574 34,167 43,402

Totalnoninterest 222,483 226,858 833,636 822,005 expense

Income before 98,369 191,107 429,060 338,890 income taxes

Income tax 19,873 34,787 76,042 52,388 expense

NET INCOME $ 78,496 $ 156,320 $ 353,018 $ 286,502



PER SHARE DATA

Net income - $ 1.62 $ 3.26 $ 7.31 $ 5.95 basic

Net income - 1.61 3.24 7.24 5.93 diluted

Dividends 0.37 0.320 1.38 1.25

Weighted averageshares 48,371,296 47,927,358 48,271,462 48,137,791 outstanding -basic

Weighted averageshares 48,854,383 48,264,097 48,738,292 48,343,750outstanding -diluted

Consolidated Statements of Comprehensive Income

UMB Financial Corporation

(dollars in thousands)

Three Months Ended

Year Ended

December 31,

December 31,

2021

2020

2021

2020

(unaudited)

(unaudited)

(unaudited)

(audited)

Net income

$

78,496

$

156,320

$

353,018

$

286,502

Other comprehensive (loss) income, before tax:

Unrealized gains and losses on debt securities:

Change in unrealized holding gains and losses, net

(46,275

)

25,576

(244,695

)

295,552

Less: Reclassification adjustment for gains included in net income

(2,739

)

(1,436

)

(7,817

)

(6,980

)

Change in unrealized gains and losses on debt securities

(49,014

)

24,140

(252,512

)

288,572

Unrealized gains and losses on derivative hedges:

Change in unrealized gains and losses on derivative hedges, net

(407

)

1,964

3,106

20,979

Less: Reclassification adjustment for gains included in net income

(802

)

(1,036

)

(3,352

)

(1,905

)

Change in unrealized gains and losses on derivative hedges

(1,209

)

928

(246

)

19,074

Other comprehensive (loss) income, before tax

(50,223

)

25,068

(252,758

)

307,646

Income tax benefit (expense)

12,230

(5,831

)

60,732

(72,486

)

Other comprehensive (loss) income

(37,993

)

19,237

(192,026

)

235,160

Comprehensive income

$

40,503

$

175,557

$

160,992

$

521,662

ConsolidatedStatements of UMB Financial CorporationComprehensive Income

(dollars in thousands)

Three Months Ended Year Ended

December 31, December 31,

2021 2020 2021 2020

(unaudited) (unaudited) (unaudited) (audited)

Net income $ 78,496 $ 156,320 $ 353,018 $ 286,502

Other comprehensive(loss) income, before tax:

Unrealized gains andlosses on debt securities:

Change in unrealizedholding gains and (46,275 ) 25,576 (244,695 ) 295,552 losses, net

Less: Reclassificationadjustment for gains (2,739 ) (1,436 ) (7,817 ) (6,980 )included in net income

Change in unrealizedgains and losses on (49,014 ) 24,140 (252,512 ) 288,572 debt securities

Unrealized gains andlosses on derivative hedges:

Change in unrealizedgains and losses on (407 ) 1,964 3,106 20,979 derivative hedges, net

Less: Reclassificationadjustment for gains (802 ) (1,036 ) (3,352 ) (1,905 )included in net income

Change in unrealizedgains and losses on (1,209 ) 928 (246 ) 19,074 derivative hedges

Other comprehensive(loss) income, before (50,223 ) 25,068 (252,758 ) 307,646 tax

Income tax benefit 12,230 (5,831 ) 60,732 (72,486 )(expense)

Other comprehensive (37,993 ) 19,237 (192,026 ) 235,160 (loss) income

Comprehensive income $ 40,503 $ 175,557 $ 160,992 $ 521,662

Consolidated Statements of Shareholders' Equity

UMB Financial Corporation

(dollars in thousands except per share data)

(audited)

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

-

-

286,502

235,160

-

521,662

Dividends ($1.25 per share)

-

-

(60,655

)

-

-

(60,655

)

Purchase of treasury stock

-

616

-

-

(64,382

)

(63,766

)

Forfeitures of equity awards, net of issuances

-

624

-

-

(16

)

608

Recognition of equity-based compensation

-

14,512

-

-

-

14,512

Sale of treasury stock

-

201

-

-

414

615

Exercise of stock options

-

733

-

-

3,838

4,571

Cumulative effect adjustment

-

-

(7,039

)

-

-

(7,039

)

Balance - December 31, 2020

$

55,057

$

1,090,450

$

1,891,246

$

318,340

$

(338,145

)

$

3,016,948

(unaudited)

Balance - January 1, 2021

$

55,057

$

1,090,450

$

1,891,246

$

318,340

$

(338,145

)

$

3,016,948

Total comprehensive income (loss)

-

-

353,018

(192,026

)

-

160,992

Dividends ($1.38 per share)

-

-

(67,266

)

-

-

(67,266

)

Purchase of treasury stock

-

-

-

-

(5,506

)

(5,506

)

Issuances of equity awards, net of forfeitures

-

(4,605

)

-

-

5,299

694

Recognition of equity-based compensation

-

20,514

-

-

-

20,514

Sale of treasury stock

-

316

-

-

283

599

Exercise of stock options

-

3,845

-

-

14,604

18,449

Balance - December 31, 2021

$

55,057

$

1,110,520

$

2,176,998

$

126,314

$

(323,465

)

$

3,145,424

Consolidated Statements of UMB Financial CorporationShareholders' Equity

(dollars in thousands except per share data)

Common Capital Retained Accumulated Treasury(audited) Other 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 - - 286,502 235,160 - 521,662 income

Dividends($1.25 per - - (60,655 ) - - (60,655 )share)

Purchase oftreasury - 616 - - (64,382 ) (63,766 )stock

Forfeituresof equity - 624 - - (16 ) 608 awards, netof issuances

Recognitionof - 14,512 - - - 14,512 equity-basedcompensation

Sale oftreasury - 201 - - 414 615 stock

Exercise of - 733 - - 3,838 4,571 stock options

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

Balance -December 31, $ 55,057 $ 1,090,450 $ 1,891,246 $ 318,340 $ (338,145 ) $ 3,016,948 2020



(unaudited)

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

Totalcomprehensive - - 353,018 (192,026 ) - 160,992 income (loss)

Dividends($1.38 per - - (67,266 ) - - (67,266 )share)

Purchase oftreasury - - - - (5,506 ) (5,506 )stock

Issuances ofequityawards, net - (4,605 ) - - 5,299 694 offorfeitures

Recognitionof - 20,514 - - - 20,514 equity-basedcompensation

Sale oftreasury - 316 - - 283 599 stock

Exercise of - 3,845 - - 14,604 18,449 stock options

Balance -December 31, $ 55,057 $ 1,110,520 $ 2,176,998 $ 126,314 $ (323,465 ) $ 3,145,424 2021

Average Balances / Yields and Rates

UMB Financial Corporation

(tax - equivalent basis)

(unaudited, dollars in thousands)

Three Months Ended December 31,

2021

2020

Average

Average

Average

Average

Balance

Yield/Rate

Balance

Yield/Rate

Assets

Loans, net of unearned interest

$

16,692,648

3.69

%

$

16,041,081

3.78

%

Securities:

Taxable

8,607,960

1.72

5,776,606

1.81

Tax-exempt

4,158,306

2.92

4,394,734

2.91

Total securities

12,766,266

2.11

10,171,340

2.28

Federal funds and resell agreements

1,099,090

0.83

1,186,939

0.86

Interest bearing due from banks

5,712,993

0.15

1,443,979

0.11

Trading securities

29,426

4.41

29,659

3.21

Total earning assets

36,300,423

2.49

28,872,998

2.95

Allowance for credit losses

(196,891

)

(217,923

)

Other assets

1,974,579

1,930,559

Total assets

$

38,078,111

$

30,585,634

Liabilities and Shareholders' Equity

Interest-bearing deposits

$

18,511,653

0.13

%

$

16,017,991

0.20

%

Federal funds and repurchase agreements

2,611,151

0.25

1,963,865

0.35

Borrowed funds

271,296

4.45

274,279

4.26

Total interest-bearing liabilities

21,394,100

0.20

18,256,135

0.27

Noninterest-bearing demand deposits

13,124,918

8,947,389

Other liabilities

417,015

446,572

Shareholders' equity

3,142,078

2,935,538

Total liabilities and shareholders' equity

$

38,078,111

$

30,585,634

Net interest spread

2.29

%

2.68

%

Net interest margin

2.37

2.78

Average Balances / Yields UMB Financial Corporationand Rates

(tax - equivalent basis)

(unaudited, dollars in thousands)

Three Months Ended December 31,

2021 2020

Average Average Average Average

Balance Yield/ Balance Yield/ Rate Rate

Assets

Loans, net of unearned $ 16,692,648 3.69 % $ 16,041,081 3.78 %interest

Securities:

Taxable 8,607,960 1.72 5,776,606 1.81

Tax-exempt 4,158,306 2.92 4,394,734 2.91

Total securities 12,766,266 2.11 10,171,340 2.28

Federal funds and resell 1,099,090 0.83 1,186,939 0.86 agreements

Interest bearing due from 5,712,993 0.15 1,443,979 0.11 banks

Trading securities 29,426 4.41 29,659 3.21

Total earning assets 36,300,423 2.49 28,872,998 2.95

Allowance for credit (196,891 ) (217,923 ) losses

Other assets 1,974,579 1,930,559

Total assets $ 38,078,111 $ 30,585,634



Liabilities and Shareholders' Equity

Interest-bearing deposits $ 18,511,653 0.13 % $ 16,017,991 0.20 %

Federal funds and 2,611,151 0.25 1,963,865 0.35 repurchase agreements

Borrowed funds 271,296 4.45 274,279 4.26

Total interest-bearing 21,394,100 0.20 18,256,135 0.27 liabilities

Noninterest-bearing 13,124,918 8,947,389 demand deposits

Other liabilities 417,015 446,572

Shareholders' equity 3,142,078 2,935,538

Total liabilities and $ 38,078,111 $ 30,585,634 shareholders' equity

Net interest spread 2.29 % 2.68 %

Net interest margin 2.37 2.78

Average Balances / Yields and Rates

UMB Financial Corporation

(tax - equivalent basis)

(unaudited, dollars in thousands)

Year Ended December 31,

2021

2020

Average

Average

Average

Average

Balance

Yield/Rate

Balance

Yield/Rate

Assets

Loans, net of unearned interest

$

16,629,867

3.72

%

$

15,126,110

3.87

%

Securities:

Taxable

7,422,432

1.72

5,256,715

2.01

Tax-exempt

4,246,943

2.93

4,226,363

2.99

Total securities

11,669,375

2.16

9,483,078

2.45

Federal funds and resell agreements

1,234,533

0.81

1,099,447

1.08

Interest bearing due from banks

4,063,089

0.13

1,218,919

0.31

Trading securities

23,480

4.33

37,086

4.28

Total earning assets

33,620,344

2.64

26,964,640

3.10

Allowance for credit losses

(204,705

)

(184,482

)

Other assets

1,912,911

1,787,979

Total assets

$

35,328,550

$

28,568,137

Liabilities and Shareholders' Equity

Interest-bearing deposits

$

17,678,122

0.15

%

$

15,336,492

0.38

%

Federal funds and repurchase agreements

2,618,034

0.26

2,023,813

0.58

Borrowed funds

270,498

4.68

136,957

5.30

Total interest-bearing liabilities

20,566,654

0.22

17,497,262

0.44

Noninterest-bearing demand deposits

11,254,761

7,845,667

Other liabilities

418,021

420,247

Shareholders' equity

3,089,114

2,804,961

Total liabilities and shareholders' equity

$

35,328,550

$

28,568,137

Net interest spread

2.42

%

2.66

%

Net interest margin

2.50

2.81

Average Balances / Yields UMB Financial Corporationand Rates

(tax - equivalent basis)

(unaudited, dollars in thousands)

Year Ended December 31,

2021 2020

Average Average Average Average

Balance Yield/ Balance Yield/ Rate Rate

Assets

Loans, net of unearned $ 16,629,867 3.72 % $ 15,126,110 3.87 %interest

Securities:

Taxable 7,422,432 1.72 5,256,715 2.01

Tax-exempt 4,246,943 2.93 4,226,363 2.99

Total securities 11,669,375 2.16 9,483,078 2.45

Federal funds and resell 1,234,533 0.81 1,099,447 1.08 agreements

Interest bearing due from 4,063,089 0.13 1,218,919 0.31 banks

Trading securities 23,480 4.33 37,086 4.28

Total earning assets 33,620,344 2.64 26,964,640 3.10

Allowance for credit (204,705 ) (184,482 ) losses

Other assets 1,912,911 1,787,979

Total assets $ 35,328,550 $ 28,568,137



Liabilities and Shareholders' Equity

Interest-bearing deposits $ 17,678,122 0.15 % $ 15,336,492 0.38 %

Federal funds and 2,618,034 0.26 2,023,813 0.58 repurchase agreements

Borrowed funds 270,498 4.68 136,957 5.30

Total interest-bearing 20,566,654 0.22 17,497,262 0.44 liabilities

Noninterest-bearing 11,254,761 7,845,667 demand deposits

Other liabilities 418,021 420,247

Shareholders' equity 3,089,114 2,804,961

Total liabilities and $ 35,328,550 $ 28,568,137 shareholders' equity

Net interest spread 2.42 % 2.66 %

Net interest margin 2.50 2.81

Business Segment Information

UMB Financial Corporation

(unaudited, dollars in thousands)

Three Months Ended December 31, 2021

Commercial Banking

Institutional Banking

Personal Banking

Total

Net interest income

$

144,051

$

23,044

$

43,475

$

210,570

Provision for credit losses

7,446

90

964

8,500

Noninterest income

21,457

70,695

26,630

118,782

Noninterest expense

79,895

74,869

67,719

222,483

Income before taxes

78,167

18,780

1,422

98,369

Income tax expense

15,791

3,794

288

19,873

Net income

$

62,376

$

14,986

$

1,134

$

78,496

Three Months Ended December 31, 2020

Commercial Banking

Institutional Banking

Personal Banking

Total

Net interest income

$

133,019

$

22,322

$

39,334

$

194,675

Provision for credit losses

3,891

116

993

5,000

Noninterest income

131,630

63,746

32,914

228,290

Noninterest expense

85,942

71,562

69,354

226,858

Income before taxes

174,816

14,390

1,901

191,107

Income tax expense

31,821

2,620

346

34,787

Net income

$

142,995

$

11,770

$

1,555

$

156,320

Year Ended December 31, 2021

Commercial Banking

Institutional Banking

Personal Banking

Total

Net interest income

$

556,673

$

87,644

$

171,204

$

815,521

Provision for credit losses

15,553

630

3,817

20,000

Noninterest income

81,752

273,413

112,010

467,175

Noninterest expense

289,039

292,080

252,517

833,636

Income before taxes

333,833

68,347

26,880

429,060

Income tax expense

59,165

12,113

4,764

76,042

Net income

$

274,668

$

56,234

$

22,116

$

353,018

Year Ended December 31, 2020

Commercial Banking

Institutional Banking

Personal Banking

Total

Net interest income

$

475,425

$

106,856

$

148,948

$

731,229

Provision for credit losses

119,424

882

10,194

130,500

Noninterest income

189,412

254,874

115,880

560,166

Noninterest expense

272,283

286,635

263,087

822,005

Income (loss) before taxes

273,130

74,213

(8,453

)

338,890

Income tax expense (benefit)

42,223

11,472

(1,307

)

52,388

Net income (loss)

$

230,907

$

62,741

$

(7,146

)

$

286,502

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 December 31, 2021.

Non-GAAP Financial Measures

Business Segment UMB Financial Corporation Information

(unaudited, dollars in thousands)

Three Months Ended December 31, 2021

Commercial Institutional Personal Total Banking Banking Banking

Net interest income $ 144,051 $ 23,044 $ 43,475 $ 210,570

Provision for credit 7,446 90 964 8,500 losses

Noninterest income 21,457 70,695 26,630 118,782

Noninterest expense 79,895 74,869 67,719 222,483

Income before taxes 78,167 18,780 1,422 98,369

Income tax expense 15,791 3,794 288 19,873

Net income $ 62,376 $ 14,986 $ 1,134 $ 78,496



Three Months Ended December 31, 2020

Commercial Institutional Personal Total Banking Banking Banking

Net interest income $ 133,019 $ 22,322 $ 39,334 $ 194,675

Provision for credit 3,891 116 993 5,000 losses

Noninterest income 131,630 63,746 32,914 228,290

Noninterest expense 85,942 71,562 69,354 226,858

Income before taxes 174,816 14,390 1,901 191,107

Income tax expense 31,821 2,620 346 34,787

Net income $ 142,995 $ 11,770 $ 1,555 $ 156,320



Year Ended December 31, 2021

Commercial Institutional Personal Total Banking Banking Banking

Net interest income $ 556,673 $ 87,644 $ 171,204 $ 815,521

Provision for credit 15,553 630 3,817 20,000 losses

Noninterest income 81,752 273,413 112,010 467,175

Noninterest expense 289,039 292,080 252,517 833,636

Income before taxes 333,833 68,347 26,880 429,060

Income tax expense 59,165 12,113 4,764 76,042

Net income $ 274,668 $ 56,234 $ 22,116 $ 353,018



Year Ended December 31, 2020

Commercial Institutional Personal Total Banking Banking Banking

Net interest income $ 475,425 $ 106,856 $ 148,948 $ 731,229

Provision for credit 119,424 882 10,194 130,500 losses

Noninterest income 189,412 254,874 115,880 560,166

Noninterest expense 272,283 286,635 263,087 822,005

Income (loss) before 273,130 74,213 (8,453 ) 338,890 taxes

Income tax expense 42,223 11,472 (1,307 ) 52,388 (benefit)

Net income (loss) $ 230,907 $ 62,741 $ (7,146 ) $ 286,502

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 December 31, 2021.

Non-GAAP Financial Measures

Net operating income Non-GAAP UMB Financial Corporationreconciliations:

(unaudited, dollars inthousands except per share data)

Three Months Ended Year Ended December 31, December 31,

2021 2020 2021 2020

Net income (GAAP) $ 78,496 $ 156,320 $ 353,018 $ 286,502

Adjustments:

Acquisition expense 18 - 18 324

Severance expense 359 109 1,122 4,757

COVID-19 related expense 169 1,286 696 6,861

Tax-impact of adjustments (i) (121 ) (310 ) (408 ) (2,651 )

Total Non-GAAP adjustments 425 1,085 1,428 9,291 (net of tax)

Net operating income $ 78,921 $ 157,405 $ 354,446 $ 295,793 (Non-GAAP)



Earnings per share - diluted $ 1.61 $ 3.24 $ 7.24 $ 5.93 (GAAP)

Acquisition expense - - - 0.01

Severance expense 0.01 - 0.02 0.10

COVID-19 related expense - 0.03 0.02 0.14

Tax-impact of adjustments (i) - (0.01 ) (0.01 ) (0.06 )

Operating earnings per share - $ 1.62 $ 3.26 $ 7.27 $ 6.12 diluted (Non-GAAP)



GAAP

Return on average assets 0.82 % 2.03 % 1.00 % 1.00 %

Return on average equity 9.91 21.18 11.43 10.21



Non-GAAP

Operating return on average 0.82 % 2.05 % 1.00 % 1.04 %assets

Operating return on average 9.97 21.33 11.47 10.55 equity

(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 December 31,

Year Ended December 31,

2021

2020

2021

2020

Noninterest expense

$

222,483

$

226,858

$

833,636

$

822,005

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

Acquisition expense

18

-

18

324

Severance expense

359

109

1,122

4,757

COVID-19 related expense

169

1,286

696

6,861

Total Non-GAAP adjustments (pre-tax)

546

1,395

1,836

11,942

Operating noninterest expense (Non-GAAP)

$

221,937

$

225,463

$

831,800

$

810,063

Noninterest expense

$

222,483

$

226,858

$

833,636

$

822,005

Less: Amortization of other intangibles

1,110

1,601

4,757

6,517

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

$

221,373

$

225,257

$

828,879

$

815,488

Operating noninterest expense

$

221,937

$

225,463

$

831,800

$

810,063

Less: Amortization of other intangibles

1,110

1,601

4,757

6,517

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

$

220,827

$

223,862

$

827,043

$

803,546

Net interest income

$

210,570

$

194,675

$

815,521

$

731,229

Noninterest income

118,782

228,290

467,175

560,166

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

2,739

1,436

7,817

6,980

Total Non-GAAP Revenue (denominator A)

$

326,613

$

421,529

$

1,274,879

$

1,284,415

Efficiency ratio (numerator A/denominator A)

67.78

%

53.44

%

65.02

%

63.49

%

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

67.61

53.11

64.87

62.56

Operatingnoninterest expenseand operating UMB Financial Corporation efficiency ratioNon-GAAPreconciliations:

(unaudited, dollars in thousands)

Three Months Ended Year Ended December 31, December 31,

2021 2020 2021 2020

Noninterest expense $ 222,483 $ 226,858 $ 833,636 $ 822,005

Adjustments toarrive at operating noninterest expense(pre-tax):

Acquisition expense 18 - 18 324

Severance expense 359 109 1,122 4,757

COVID-19 related 169 1,286 696 6,861 expense

Total Non-GAAPadjustments 546 1,395 1,836 11,942 (pre-tax)

Operatingnoninterest expense $ 221,937 $ 225,463 $ 831,800 $ 810,063 (Non-GAAP)



Noninterest expense $ 222,483 $ 226,858 $ 833,636 $ 822,005

Less: Amortizationof other 1,110 1,601 4,757 6,517 intangibles

Noninterestexpense, net ofamortization of $ 221,373 $ 225,257 $ 828,879 $ 815,488 other intangibles(Non-GAAP)(numerator A)



Operating $ 221,937 $ 225,463 $ 831,800 $ 810,063 noninterest expense

Less: Amortizationof other 1,110 1,601 4,757 6,517 intangibles

Operating expense,net of amortizationof other $ 220,827 $ 223,862 $ 827,043 $ 803,546 intangibles(Non-GAAP)(numerator B)



Net interest income $ 210,570 $ 194,675 $ 815,521 $ 731,229

Noninterest income 118,782 228,290 467,175 560,166

Less: Gains onsales of securities 2,739 1,436 7,817 6,980 available for sale,net

Total Non-GAAPRevenue $ 326,613 $ 421,529 $ 1,274,879 $ 1,284,415 (denominator A)



Efficiency ratio(numerator A/ 67.78 % 53.44 % 65.02 % 63.49 %denominator A)

Operatingefficiency ratio(Non-GAAP) 67.61 53.11 64.87 62.56 (numerator B/denominator A)

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

UMB Financial Corporation

(unaudited, dollars in thousands except per share data)

Three Months Ended December 31,

Year Ended December 31,

2021

2020

2021

2020

Net income before taxes (GAAP)

$

98,369

$

191,107

$

429,060

$

338,890

Adjustments:

Provision for credit losses

8,500

5,000

20,000

130,500

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

$

106,869

$

196,107

$

449,060

$

469,390

Pre-tax earnings per share - diluted (GAAP)

$

2.01

$

3.96

$

8.80

$

7.01

Provision for credit losses

0.18

0.10

0.41

2.70

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

$

2.19

$

4.06

$

9.21

$

9.71

Pre-tax, pre-provisionincome non-GAAP UMB Financial Corporation reconciliations:

(unaudited, dollars inthousands except per share data)

Three Months Ended Year Ended December 31, December 31,

2021 2020 2021 2020

Net income before taxes $ 98,369 $ 191,107 $ 429,060 $ 338,890 (GAAP)

Adjustments:

Provision for credit 8,500 5,000 20,000 130,500 losses

Pre-tax, pre-provision $ 106,869 $ 196,107 $ 449,060 $ 469,390 income (Non-GAAP)



Pre-tax earnings per $ 2.01 $ 3.96 $ 8.80 $ 7.01 share - diluted (GAAP)

Provision for credit 0.18 0.10 0.41 2.70 losses

Pre-tax, pre-provisionearnings per share - $ 2.19 $ 4.06 $ 9.21 $ 9.71 diluted (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 December 31,

Year Ended December 31,

2021

2020

2021

2020

Net interest income

$

210,570

$

194,675

$

815,521

$

731,229

Adjustments to arrive at net interest income - FTE:

Tax equivalent interest

6,483

6,839

26,334

26,718

Net interest income - FTE

$

217,053

$

201,514

$

841,855

$

757,947

Noninterest income

118,782

228,290

467,175

560,166

Less: Noninterest expense

222,483

226,858

833,636

822,005

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

$

113,352

$

202,946

$

475,394

$

496,108

Net interest income earnings per share - diluted

$

4.31

$

4.03

$

16.73

$

15.12

Tax equivalent interest

0.13

0.14

0.53

0.55

Net interest income - FTE

4.44

4.17

17.26

15.67

Noninterest income

2.43

4.73

9.59

11.59

Less: Noninterest expense

4.55

4.70

17.10

17.00

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

$

2.32

$

4.20

$

9.75

$

10.26

Pre-tax, pre-provisionincome - FTE Non-GAAP UMB Financial Corporation reconciliations:

(unaudited, dollars inthousands except per share data)

Three Months Ended Year Ended December 31, December 31,

2021 2020 2021 2020

Net interest income $ 210,570 $ 194,675 $ 815,521 $ 731,229

Adjustments to arriveat net interest income - FTE:

Tax equivalent interest 6,483 6,839 26,334 26,718

Net interest income - $ 217,053 $ 201,514 $ 841,855 $ 757,947 FTE

Noninterest income 118,782 228,290 467,175 560,166

Less: Noninterest 222,483 226,858 833,636 822,005 expense

Pre-tax, pre-provision $ 113,352 $ 202,946 $ 475,394 $ 496,108 income - FTE (Non-GAAP)



Net interest incomeearnings per share - $ 4.31 $ 4.03 $ 16.73 $ 15.12 diluted

Tax equivalent interest 0.13 0.14 0.53 0.55

Net interest income - 4.44 4.17 17.26 15.67 FTE

Noninterest income 2.43 4.73 9.59 11.59

Less: Noninterest 4.55 4.70 17.10 17.00 expense

Pre-tax, pre-provisionincome - FTE earnings $ 2.32 $ 4.20 $ 9.75 $ 10.26 per share - diluted(Non-GAAP)

Tangible book value non-GAAP reconciliations:

UMB Financial Corporation

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

As of December 31,

2021

2020

Total shareholders' equity (GAAP)

$

3,145,424

$

3,016,948

Less: Intangible assets

Goodwill

174,518

180,867

Other intangibles, net

14,416

21,056

Total intangibles, net

188,934

201,923

Total tangible shareholders' equity (Non-GAAP)

$

2,956,490

$

2,815,025

Total shares outstanding

48,430,805

48,006,386

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

$

64.95

$

62.84

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

61.05

58.64

View source version on businesswire.com: https://www.businesswire.com/news/home/20220125005049/en/

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