UMB Financial Corporation Reports First Quarter 2025 Results

First Quarter 2025 Financial Highlights

On January 31, 2025, UMB Financial Corporation completed its merger with Heartland Financial USA, Inc. GAAP net income available to common shareholders of $79.3 million, or $1.21 per diluted common share. Net operating income available to common shareholders(i) of $168.9 million, or $2.58 per diluted common share. Operating pre-tax, pre-provision (operating PTPP)(i) income of $233.3 million, compared to $157.5 million in the first quarter of 2024. Net interest margin on a fully taxable equivalent basis of 2.96%, up 39 basis points from the linked quarter. Efficiency ratio of 65.19% due to merger-related nonrecurring charges; operating efficiency ratio(i) of 55.56% improved from 61.12% in the prior quarter and 60.04% in the first quarter of 2024. Average loans increased 27.8% on a linked-quarter basis to $32.3 billion; Average loans increased $9.0 billion, or 38.3% as compared to the first quarter of 2024. End-of-period loans were $35.9 billion at March 31, 2025. Average deposits increased 32.3% on a linked-quarter basis, to $50.3 billion. End-of-period deposits were $58.5 billion at March 31, 2025.

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

KANSAS CITY, Mo., April 29, 2025--(BUSINESS WIRE)--UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income available to common shareholders for the first quarter of 2025 of $79.3 million, or $1.21 per diluted share, compared to $120.0 million, or $2.44 per diluted share, in the fourth quarter (linked quarter) and $110.3 million, or $2.25 per diluted share, in the first quarter of 2024.

On January 31, 2025, UMBF completed its previously announced acquisition of Heartland Financial, USA, Inc. (HTLF). The acquisition added assets with a fair value of approximately $17.9 billion, $9.8 billion of loans, net of the allowance for credit losses, and $14.3 billion of deposits. The combined company retains its #1 deposit market share in Missouri and now ranks in the top 10 in Colorado, New Mexico, Kansas, and Arizona.

Net operating income available to common shareholders, a non-GAAP financial measure reconciled later in this release to net income available to common shareholders, the nearest comparable GAAP measure, was $168.9 million, or $2.58 per diluted share, for the first quarter of 2025, compared to $122.6 million, or $2.49 per diluted share, for the linked quarter and $120.7 million, or $2.47 per diluted share, for the first quarter of 2024. Operating pre-tax, pre-provision income (operating PTPP), a non-GAAP measure reconciled later in this release to the components of net income before taxes, the nearest comparable GAAP measure, was $233.3 million, or $3.57 per diluted share, for the first quarter of 2025, compared to $166.9 million, or $3.39 per diluted share, for the linked quarter, and $157.5 million, or $3.22 per diluted share, for the first quarter of 2024. These operating PTPP results represent increases of 39.8% on a linked-quarter basis and 48.2% compared to the first quarter of 2024.

Story Continues

"2025 is off to an exciting start with strong first quarter financial results in addition to the completion of our acquisition of Heartland Financial in January," said Mariner Kemper, UMB Financial Corporation chairman and chief executive officer. "The cultural integration of the acquisition as well as technology systems conversion plans, are on track. The value proposition of the core deposit franchise at HTLF was evident as demonstrated by the 37-basis points improvement in cost of interest-bearing deposits and 39-basis points increase in our net interest margin, compared to the linked quarter. Total top line loan production exceeded $1.2 billion in the first quarter, including early encouraging pipeline in the acquired markets. Excluding the impact of acquired balances, legacy UMB average loans in the first quarter of 2025 increased 8.3%, while average total deposits increased 27.3%, including an 11.2% increase in average demand deposit balances, all on a linked-quarter annualized basis."

First quarter 2025 earnings discussion

Summary of quarterly financial results  UMB Financial Corporation (unaudited, dollars in thousands, except per common share data)  Q1  Q4  Q1 2025  2024  2024 Net income (GAAP)  $ 81,333   $ 119,997   $ 110,258  Net income available to common shareholders (GAAP)   79,320    119,997    110,258  Earnings per common share - diluted (GAAP)   1.21    2.44    2.25   Operating pre-tax, pre-provision income (Non-GAAP)(i)   233,293    166,901    157,451  Operating pre-tax, pre-provision earnings per common share - diluted (Non-GAAP)(i)   3.57    3.39    3.22   Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i)   240,798    173,270    163,967  Operating pre-tax, pre-provision earnings per common share - FTE - diluted (Non-GAAP)(i)   3.68    3.52    3.35   Net operating income available to common shareholders (Non-GAAP)(i)   168,878    122,577    120,712  Operating earnings per common share - diluted (Non-GAAP)(i)   2.58    2.49    2.47   GAAP  Return on average assets   0.54 %   1.06 %   1.06 % Return on average common equity   5.86    13.53    14.11  Efficiency ratio   65.19    61.83    63.44   Non-GAAP(i)  Operating return on average assets   1.14 %   1.08 %   1.16 % Operating return on average common equity   12.47    13.82    15.44  Operating efficiency ratio   55.56    61.12    60.04  (i) See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.

Summary of revenue  UMB Financial Corporation (unaudited, dollars in thousands)  Q1  Q4  Q1  CQ vs.  CQ vs. 2025  2024  2024  LQ  PY Net interest income  $ 397,639   $ 268,974   $ 239,434   $ 128,665   $ 158,205  Noninterest income:  Trust and securities processing   79,781    76,861    69,478    2,920    10,303  Trading and investment banking   5,911    6,185    5,462    (274 )   449  Service charges on deposit accounts   27,457    21,405    20,757    6,052    6,700  Insurance fees and commissions   178    425    283    (247 )   (105 ) Brokerage fees   18,102    18,635    13,160    (533 )   4,942  Bankcard fees   26,293    21,089    21,968    5,204    4,325  Investment securities (losses) gains, net   (4,782 )   593    9,371    (5,375 )   (14,153 ) Other   13,258    20,018    18,765    (6,760 )   (5,507 ) Total noninterest income  $ 166,198   $ 165,211   $ 159,244   $ 987   $ 6,954  Total revenue  $ 563,837   $ 434,185   $ 398,678   $ 129,652   $ 165,159  Net interest income (FTE)  $ 405,144   $ 275,343   $ 245,950  Net interest margin (FTE)   2.96 %   2.57 %   2.48 %  Total noninterest income as a % of total revenue   29.5    38.1    39.9

Net interest income

First quarter 2025 net interest income totaled $397.6 million, an increase of $128.7 million, or 47.8%, from the linked quarter, driven primarily by the acquisition of HTLF during the first quarter of 2025, as well as legacy-UMB balance sheet growth. Average earning assets increased $12.9 billion, or 30.3%, from the linked quarter, largely driven by the acquisition of HTLF. The acquisition added earning assets with a fair value of approximately $14.4 billion, including $9.8 billion of loans, net of the allowance for credit losses, and $3.7 billion of securities as of January 31, 2025. On a consolidated basis, there were increases of $7.0 billion in average loans, $2.5 billion in average securities, and $3.2 billion in interest-bearing due from banks as compared to the linked quarter. Average interest-bearing liabilities increased $10.1 billion, or 33.6%, from the linked quarter, primarily driven by the acquisition of HTLF. The acquisition added interest-bearing deposits with a fair value of $10.6 billion and noninterest-bearing deposits of $3.9 billion as of January 31, 2025. On a consolidated basis, there was an increase of $9.5 billion in interest-bearing deposits, $442.4 million in federal funds and repurchase agreements, and $161.0 million in borrowed funds. Average noninterest-bearing demand deposits increased $2.8 billion, or 26.2%, as compared to the linked quarter. Net interest margin for the first quarter was 2.96%, an increase of 39 basis points from the linked quarter, driven by higher loan and securities yields driven in large part by the net impact of purchase accounting accretion income on acquired assets and liabilities, the decreased cost of interest-bearing liabilities due to lower short-term interest rates and benefit of lower-cost HTLF interest-bearing deposits balances, and earning asset mix changes. Average loan yields increased 16 basis points and total earning asset yields increased 20 basis points from the linked quarter. The cost of interest-bearing liabilities decreased 35 basis points sequentially to 3.44%. Total cost of funds decreased 22 basis points from the linked quarter to 2.58%. On a year-over-year basis, net interest income increased $158.2 million, or 66.1%, driven by a $15.7 billion, or 39.3%, increase in average earning assets, primarily driven by rate and mix changes related to the acquisition of HTLF. Average loans increased $9.0 billion, interest bearing due from banks increased $3.5 billion, and average securities increased $2.9 billion. Average deposits increased 50.0% compared to the first quarter of 2024. Average interest-bearing deposits increased 57.1% and noninterest-bearing demand deposit balances increased 33.4% compared to the first quarter of 2024. Average demand deposit balances comprised 26.7% of total deposits, compared to 28.0% in the linked quarter and 30.0% in the first quarter of 2024. Average borrowed funds increased $161.0 million as compared to the linked quarter and decreased $1.6 billion as compared to the first quarter of 2024, driven by the acquisition of HTLF and the repayment of borrowings under the BTFP and FHLB advances, respectively.

Noninterest income

First quarter 2025 noninterest income increased $1.0 million, or 0.6%, on a linked-quarter basis, largely due to:

An increase of $6.1 million in service charges on deposits driven by increased service charge income on interest-bearing checking accounts, largely driven by the HTLF acquisition and increased corporate service charges income. An increase of $5.2 million in bankcard income, driven by an additional $5.4 million of interchange income from legacy HTLF cards. These increases were partially offset by the following decreases:

A decrease of $5.4 million in investment securities gains, primarily driven by decreased valuations in the company's non-marketable securities. Decreases of $3.1 million in company-owned life insurance income and $1.4 million in derivative income, both recorded in other income. The decrease in company-owned life insurance was offset by a proportionate decrease in deferred compensation expense as noted below. A decrease of $1.5 million in miscellaneous other income, driven by the gain of $4.1 million recorded during the linked quarter on the sale of UMB Distribution Services. During the first quarter of 2025, gains of $1.5 million were recorded for recoveries of loans previously charged off by HTLF and $0.9 million on legal settlements. Compared to the prior year, noninterest income in the first quarter of 2025 increased $7.0 million, or 4.4%, primarily driven by:

Increases of $4.4 million in trust income, $3.6 million in fund services income, and $2.4 million in corporate trust income, all recorded in trust and securities processing. An increase of $6.7 million in service charges on deposit accounts, primarily driven by increased service charge income on interest-bearing checking accounts, largely due to the HTLF acquisition and increased corporate service charges income. Increases of $4.9 million in brokerage income due to higher 12b-1 fees and money market income and $4.3 million in bankcard income due to increased interchange income, partially offset by increased rebates and rewards expense. These increases were offset by the following decreases:

A decrease of $14.2 million in investment securities gains, primarily driven by a net $8.6 million gain on disposition of two of the company's non-marketable securities in the first quarter of 2024, coupled with $5.3 million in decreased valuation in the company's non-marketable securities during the first quarter of 2025. A decrease of $5.3 million in company-owned life insurance income, recorded in other income. The decrease in company-owned life insurance was offset by a proportionate decrease in deferred compensation expense as noted below.

Noninterest expense

Summary of noninterest expense  UMB Financial Corporation (unaudited, dollars in thousands)  Q1  Q4  Q1  CQ vs.  CQ vs. 2025  2024  2024  LQ  PY Salaries and employee benefits  $ 221,398   $ 161,062   $ 143,006   $ 60,336   $ 78,392  Occupancy, net   16,069    11,272    12,270    4,797    3,799  Equipment   16,948    15,312    16,503    1,636    445  Supplies and services   4,785    3,173    3,301    1,612    1,484  Marketing and business development   7,998    8,999    6,025    (1,001 )   1,973  Processing fees   40,850    30,565    27,936    10,285    12,914  Legal and consulting   28,606    12,229    7,894    16,377    20,712  Bankcard   12,795    9,398    10,567    3,397    2,228  Amortization of other intangible assets   17,482    1,917    1,960    15,565    15,522  Regulatory fees   8,237    5,255    19,395    2,982    (11,158 ) Other   9,619    11,179    5,947    (1,560 )   3,672  Total noninterest expense  $ 384,787   $ 270,361   $ 254,804   $ 114,426   $ 129,983

GAAP noninterest expense for the first quarter of 2025 was $384.8 million, an increase of $114.4 million, or 42.3%, from the linked quarter and $130.0 million, or 51.0% from the first quarter of 2024. First quarter 2025 expenses included $53.2 million in total acquisition-related and other nonrecurring costs, compared to $3.7 million in the linked quarter. Operating noninterest expense, a non-GAAP financial measure reconciled later in this release to noninterest expense, the nearest comparable GAAP measure, was $330.5 million for the first quarter of 2025, an increase of $63.3 million, or 23.7%, from the linked quarter and an increase of $89.3 million, or 37.0%, from the first quarter of 2024. The linked-quarter increase in GAAP noninterest expense was driven by:

An increase of $45.5 million in salaries and bonus expense, recorded in salaries and employee benefits, primarily driven by increased severance, retention bonuses, and change in control payments made to HTLF associates. An increase of $16.3 million in payroll taxes, insurance, and 401(k) expense recognized in the first quarter in employee benefits expense due to the on-boarding of additional associates from HTLF, coupled with the seasonal increase in these expenses. Increases of $16.4 million and $15.6 million in legal and consulting expense and amortization of intangibles, respectively, both driven by additional expense related to the acquisition. Legal and consulting expense includes $19.0 million of non-recurring transaction costs associated with the acquisition. Amortization of intangibles includes amortization of the core deposit intangible, customer list and purchased credit card relationship intangibles recognized in the first quarter from the HTLF acquisition. An increase of $10.3 million in processing fees due to increased software subscription costs, of which $6.2 million is driven by legacy-HTLF expenses. Increases of $4.8 million in occupancy expense, $3.4 million in bankcard expense and $3.0 million in regulatory fees expense. The increases in occupancy and bankcard expense were driven by higher volume of activity from the HTLF acquisition. These increases were partially offset by a decrease of $1.8 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 increase in GAAP noninterest expense was driven by:

An increase of $71.6 million in salaries and bonus expense, recorded in salaries and employee benefits, primarily driven by increased severance, retention bonuses, and change in control payments made to HTLF associates, as well as higher bonus expense due to higher company performance for UMB-legacy associates. An increase of $10.1 million in payroll taxes, insurance, and 401(k) expense recognized in the first quarter in employee benefits expense due to the on-boarding of additional associates from HTLF. Increases of $20.7 million and $15.5 million in legal and consulting expense and amortization of intangibles, respectively, both driven by additional expense related to the acquisition. Legal and consulting expense includes $19.0 million of non-recurring transaction costs associated with the acquisition in the first quarter of 2025. Amortization of intangibles includes amortization of the core deposit intangible, customer list and purchased credit card relationship intangibles recognized in the first quarter from the HTLF acquisition. An increase of $12.9 million in processing fees due to increased software subscription costs, of which $6.2 million is driven by legacy-HTLF expenses. Increases of $3.8 million in occupancy expense and $2.2 million in bankcard expense driven by higher volume of activity from the HTLF acquisition. Increases of $1.7 million in operational losses and $0.8 million in insurance expense, both recorded in other expense. These increases were partially offset by the following decreases:

A decrease of $11.2 million in regulatory fees driven by reduced FDIC special assessment expense during 2025 as compared to 2024. The results for the first quarter of 2024 included $13.0 million in regulatory fees expense for the special assessment compared to $0.6 million during the first quarter of 2025. 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.

Income taxes

The company’s effective tax rate was 12.6% for the three months ended March 31, 2025, compared to 17.6% for the same period in 2024. The effective tax rate decreased primarily due to more favorable discrete tax items in 2025 as compared to 2024, including a favorable discrete tax benefit for the remeasurement of deferred tax assets due to an increase in the forecasted state marginal tax rate driven by the acquisition of HTLF. Additionally, there was an increase in excess tax benefits associated with stock compensation recorded in the first quarter of 2025 compared to the same period a year earlier.

Balance sheet

Average total assets for the first quarter of 2025 were $60.0 billion compared to $45.0 billion for the linked quarter and $42.0 billion for the same period in 2024.

Summary of average loans and leases - QTD Average UMB Financial Corporation (unaudited, dollars in thousands)  Q1  Q4  Q1  CQ vs.  CQ vs. 2025  2024  2024  LQ  PY Commercial and industrial  $ 12,761,998   $ 10,637,952   $ 9,942,457   $ 2,124,046   $ 2,819,541  Specialty lending   522,583    491,546    485,989    31,037    36,594  Commercial real estate   14,074,863    10,007,361    9,026,511    4,067,502    5,048,352  Consumer real estate   3,819,602    3,143,613    2,968,320    675,989    851,282  Consumer   264,467    177,341    154,062    87,126    110,405  Credit cards   689,645    630,373    489,546    59,272    200,099  Leases and other   176,539    201,602    287,158    (25,063 )   (110,619 ) Total loans  $ 32,309,697   $ 25,289,788   $ 23,354,043   $ 7,019,909   $ 8,955,654

Average loans for the first quarter of 2025 increased $7.0 billion, or 27.8%, on a linked-quarter basis and $9.0 billion, or 38.3%, compared to the first quarter of 2024.

Summary of average securities - QTD Average UMB Financial Corporation (unaudited, dollars in thousands)  Q1  Q4  Q1  CQ vs.  CQ vs. 2025  2024  2024  LQ  PY Securities available for sale:  U.S. Treasury  $ 1,397,844   $ 1,131,295   $ 1,127,611   $ 266,549   $ 270,233  U.S. Agencies   133,852    159,808    199,719    (25,956 )   (65,867 ) Mortgage-backed   5,303,047    4,200,465    3,595,619    1,102,582    1,707,428  State and political subdivisions   2,084,441    1,241,033    1,254,148    843,408    830,293  Corporates   317,378    321,939    341,142    (4,561 )   (23,764 ) Collateralized loan obligations   398,418    359,053    347,063    39,365    51,355  Total securities available for sale  $ 9,634,980   $ 7,413,593   $ 6,865,302   $ 2,221,387   $ 2,769,678  Securities held to maturity:  U.S. Agencies  $ 112,547   $ 116,316   $ 123,225   $ (3,769 )  $ (10,678 ) Mortgage-backed   2,492,446    2,542,385    2,707,780    (49,939 )   (215,334 ) State and political subdivisions   3,022,878    2,765,663    2,821,799    257,215    201,079  Total securities held to maturity  $ 5,627,871   $ 5,424,364   $ 5,652,804   $ 203,507   $ (24,933 ) Trading securities  $ 20,863   $ 25,224   $ 17,893   $ (4,361 )  $ 2,970  Other securities   586,866    466,545    478,805    120,321    108,061  Total securities  $ 15,870,580   $ 13,329,726   $ 13,014,804   $ 2,540,854   $ 2,855,776

Average total securities increased 19.1% on a linked-quarter basis and increased 21.9% compared to the first quarter of 2024.

Summary of average deposits - QTD Average UMB Financial Corporation (unaudited, dollars in thousands)  Q1  Q4  Q1  CQ vs.  CQ vs. 2025  2024  2024  LQ  PY Deposits:  Noninterest-bearing demand  $ 13,428,205   $ 10,637,616   $ 10,066,409   $ 2,790,589   $ 3,361,796  Interest-bearing demand and savings   33,991,906    25,367,316    20,701,659    8,624,590    13,290,247  Time deposits   2,864,408    2,012,287    2,758,064    852,121    106,344  Total deposits  $ 50,284,519   $ 38,017,219   $ 33,526,132   $ 12,267,300   $ 16,758,387  Noninterest bearing deposits as % of total   26.7 %   28.0 %   30.0 %

Average deposits increased 32.3% on a linked-quarter basis and 50.0% compared to the first quarter of 2024.

Capital

Capital information  UMB Financial Corporation (unaudited, dollars in thousands, except per share data)  March 31, 2025  December 31, 2024  March 31, 2024 Total equity  $ 6,748,434   $ 3,466,541   $ 3,152,816  Total common equity   6,637,730    3,466,541    3,152,816  Accumulated other comprehensive loss, net   (492,698 )   (573,050 )   (594,538 ) Book value per common share   87.43    71.02    64.68  Tangible book value per common share (Non-GAAP)(i)   56.40    65.46    59.01   Regulatory capital:  Common equity Tier 1 capital  $ 4,767,403   $ 3,802,257   $ 3,503,837  Tier 1 capital   4,878,108    3,802,257    3,503,837  Total capital   5,914,197    4,445,872    4,115,097   Regulatory capital ratios:  Common equity Tier 1 capital ratio   10.11 %   11.29 %   11.09 % Tier 1 risk-based capital ratio   10.35    11.29    11.09  Total risk-based capital ratio   12.54    13.21    13.03  Tier 1 leverage ratio   8.47    8.50    8.39  (i) See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.

Under the terms of the HTLF merger agreement, former HTLF shareholders received 0.55 shares of UMBF for each share of HTLF common stock, or 23.6 million UMBF shares. On March 14, 2025, the company settled its previously announced forward sale arrangement which added $235.1 million in common equity and 3.2 million shares of common stock. At March 31, 2025, 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 2025  2024  2024  2024  2024 Net charge-offs - total loans  $ 35,872   $ 8,935   $ 8,454   $ 2,856   $ 3,017  Net loan charge-offs as a % of total average loans   0.45 %   0.14 %   0.14 %   0.05 %   0.05 % Loans over 90 days past due  $ 6,346   $ 7,602   $ 7,133   $ 5,644   $ 3,076  Loans over 90 days past due as a % of total loans   0.02 %   0.03 %   0.03 %   0.02 %   0.01 % Nonaccrual and restructured loans  $ 100,885   $ 19,282   $ 19,291   $ 13,743   $ 17,756  Nonaccrual and restructured loans as a % of total loans   0.28 %   0.08 %   0.08 %   0.06 %   0.08 % Provision for credit losses  $ 86,000   $ 19,000   $ 18,000   $ 14,050   $ 10,000

Provision for credit losses for the first quarter increased $67.0 million from the linked quarter and $76.0 million from the first quarter of 2024. Provision in the first quarter of 2025 includes $62.0 million for Day 1 provision expense to establish an allowance for credit losses on those acquired HTLF loans that were designated as non-purchase credit deteriorated (non-PCD) at the close of the transaction. The remainder of the change in provision expense is driven largely by provision tied to the $681.3 million and $2.7 billion increases in period-end organic UMB loans, as compared to the linked quarter and prior year, respectively, as well as general portfolio trends in the current period as compared to the prior periods. Net charge-offs for the first quarter totaled $35.9 million, or 0.45% of average loans, compared to $8.9 million, or 0.14% of average loans in the linked quarter, and $3.0 million, or 0.05% of average loans for the first quarter of 2024. Approximately $29.7 million of the net charge-offs in the first quarter of 2025 were related to loans acquired from HTLF. Excluding net charge-offs from acquired loans, net charge-offs on legacy UMB loans totaled $6.2 million, or only 0.10% of average loans.

Dividend Declaration and Share Repurchase Authorization

At the company’s quarterly board meeting, the Board of Directors declared a $0.40 per share quarterly cash dividend, payable on July 1, 2025, to stockholders of record of the company's common stock at the close of business on June 10, 2025. Additionally, the Board of Directors declared a dividend of $175 per share of the Company's Series A 7.00% preferred stock, which results in a dividend of $0.4375 per depositary share. The preferred stock dividend is payable on July 15, 2025, to stockholders of record of the preferred stock as of the close of business on June 30, 2025.

As in prior years, the Board also reviewed and approved the repurchase of up to 1,000,000 shares of the company’s common stock. Share repurchases may occur from time to time at any point until the regular meeting of the Board that immediately follows the 2026 annual meeting of the company’s shareholders. Shares acquired under the repurchase program may be available for reissuance or resale, including in connection with the company’s compensation plans and dividend reinvestment plan. Under the repurchase program, the company may acquire the shares from time to time in open market or privately negotiated transactions, at the discretion of management.

Conference Call

The company will host a conference call to discuss its first quarter 2025 earnings results on Wednesday, April 30, 2025, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 833-470-1428 or (international) 404-975-4839 and requesting to join the UMB Financial call with access code 218749. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 1Q 2025 Conference Call

A replay of the conference call may be heard through May 14, 2025, by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 301051. 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 available to common shareholders, operating earnings per share – diluted (operating EPS), operating return on average common equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, operating efficiency ratio, operating pre-tax, pre-provision income (operating PTPP), operating pre-tax, pre-provision earnings per share – diluted (operating PTPP EPS), operating pre-tax, pre-provision income on a fully tax equivalent basis (operating PTPP-FTE), operating pre-tax, pre-provision FTE earnings per share – diluted (operating PTPP-FTE EPS), tangible common 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 available to common shareholders, operating EPS, operating ROE, operating ROA, operating noninterest expense, operating efficiency ratio, operating PTPP, operating PTPP EPS, operating PTPP-FTE, operating PTPP-FTE EPS, tangible common shareholders’ equity, and tangible book value per share – and the nearest comparable GAAP financial measures are reconciled later in this release. The company believes that these non-GAAP financial measures and the reconciliations may be useful to investors because they adjust for acquisition- and severance-related items, and the FDIC special assessment that management does not believe reflect the company’s fundamental operating performance.

Net operating income available to common shareholders for the relevant period is defined as GAAP net income available to common shareholders, adjusted to reflect the impact of excluding expenses related to Day 1 acquisition provision expense, acquisitions, severance expense, the FDIC special assessment, and the cumulative tax impact of these adjustments.

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

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

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

Tangible common shareholders’ equity for the relevant period is defined as GAAP common shareholders’ equity, net of intangible assets. Tangible book value per share is defined as tangible common shareholders’ equity divided by the Company’s total common 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, 2024, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (SEC). In addition to such factors that have been disclosed previously: macroeconomic and adverse developments and uncertainties related to the collateral effects of the collapse of, and challenges for, domestic and international banks, including the impacts to the U.S. and global economies; sustained levels of high inflation and the potential for an economic recession on the heels of aggressive quantitative tightening by the Federal Reserve; and impacts related to or resulting from instability in the Middle East and Russia’s military action in Ukraine, such as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except to the extent required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC.

About UMB:

UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending, investment and retirement plan services; personal banking, which includes comprehensive deposit, lending, 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, Arizona, California, Colorado, Iowa, Kansas, Illinois, Minnesota, Nebraska, New Mexico, Oklahoma, Texas, and Wisconsin. As the company’s reach continues to grow, it also serves business clients nationwide and institutional clients in several countries. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn.

Consolidated Balance Sheets  UMB Financial Corporation (unaudited, dollars in thousands)  March 31, 2025  2024 ASSETS  Loans  $ 35,936,281   $ 23,637,649  Allowance for credit losses on loans   (368,922 )   (226,159 ) Net loans   35,567,359    23,411,490  Loans held for sale   5,099    4,415  Securities:  Available for sale   10,895,659    6,541,391  Held to maturity, net of allowance for credit losses   5,712,764    5,622,617  Trading securities   35,461    40,187  Other securities   647,152    473,434  Total securities   17,291,036    12,677,629  Federal funds sold and resell agreements   636,069    180,275  Interest-bearing due from banks   9,811,867    6,673,104  Cash and due from banks   917,450    356,963  Premises and equipment, net   391,147    231,918  Accrued income   308,103    221,447  Goodwill   1,798,451    207,385  Other intangibles, net   557,186    69,052  Other assets   2,063,546    1,309,697  Total assets  $ 69,347,313   $ 45,343,375   LIABILITIES  Deposits:  Noninterest-bearing demand  $ 18,431,854   $ 13,251,090  Interest-bearing demand and savings   36,898,898    21,018,911  Time deposits under $250,000   1,871,388    2,044,280  Time deposits of $250,000 or more   1,319,038    599,329  Total deposits   58,521,178    36,913,610  Federal funds purchased and repurchase agreements   2,559,983    2,225,474  Short-term debt   —    1,800,000  Long-term debt   654,380    383,742  Accrued expenses and taxes   352,143    374,888  Other liabilities   511,195    492,845  Total liabilities   62,598,879    42,190,559   SHAREHOLDERS' EQUITY  Series A Fixed-Rate Reset Non-Cumulative Perpetual Preferred stock   110,705    —  Common stock   78,666    55,057  Capital surplus   3,993,662    1,127,806  Retained earnings   3,224,866    2,903,106  Accumulated other comprehensive loss, net   (492,698 )   (594,538 ) Treasury stock   (166,767 )   (338,615 ) Total shareholders' equity   6,748,434    3,152,816  Total liabilities and shareholders' equity  $ 69,347,313   $ 45,343,375

Consolidated Statements of Income  UMB Financial Corporation (unaudited, dollars in thousands except share and per share data)  Three Months Ended  March 31,  2025  2024 INTEREST INCOME  Loans  $ 527,404   $ 385,566  Securities:  Taxable interest   98,296    61,111  Tax-exempt interest   29,963    25,333  Total securities income   128,259    86,444  Federal funds and resell agreements   6,952    3,062  Interest-bearing due from banks   74,985    44,688  Trading securities   370    305  Total interest income   737,970    520,065  INTEREST EXPENSE  Deposits   303,406    223,875  Federal funds and repurchase agreements   25,790    27,662  Other   11,135    29,094  Total interest expense   340,331    280,631  Net interest income   397,639    239,434  Provision for credit losses   86,000    10,000  Net interest income after provision for credit losses   311,639    229,434  NONINTEREST INCOME  Trust and securities processing   79,781    69,478  Trading and investment banking   5,911    5,462  Service charges on deposit accounts   27,457    20,757  Insurance fees and commissions   178    283  Brokerage fees   18,102    13,160  Bankcard fees   26,293    21,968  Investment securities (losses) gains, net   (4,782 )   9,371  Other   13,258    18,765  Total noninterest income   166,198    159,244  NONINTEREST EXPENSE  Salaries and employee benefits   221,398    143,006  Occupancy, net   16,069    12,270  Equipment   16,948    16,503  Supplies and services   4,785    3,301  Marketing and business development   7,998    6,025  Processing fees   40,850    27,936  Legal and consulting   28,606    7,894  Bankcard   12,795    10,567  Amortization of other intangible assets   17,482    1,960  Regulatory fees   8,237    19,395  Other   9,619    5,947  Total noninterest expense   384,787    254,804  Income before income taxes   93,050    133,874  Income tax expense   11,717    23,616  NET INCOME   81,333    110,258  Less: Preferred dividends   2,013    —  NET INCOME AVAILABLE TO COMMON SHAREHOLDERS  $ 79,320   $ 110,258   PER SHARE DATA  Net income per common share – basic  $ 1.22   $ 2.27  Net income per common share – diluted   1.21    2.25  Dividends per common share   0.40    0.39  Weighted average common shares outstanding – basic   65,063,262    48,663,515  Weighted average common shares outstanding – diluted   65,496,058    48,920,863

Consolidated Statements of Comprehensive Income  UMB Financial Corporation (unaudited, dollars in thousands)  Three Months Ended March 31, 2025  2024 Net income  $ 81,333   $ 110,258  Other comprehensive income (loss), before tax:  Unrealized gains and losses on debt securities:  Change in unrealized holding gains and losses, net   76,235    (41,553 ) Less: Reclassification adjustment for net gains included in net income   (390 )   (139 ) Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity   8,290    8,789  Change in unrealized gains and losses on debt securities   84,135    (32,903 ) Unrealized gains and losses on derivative hedges:  Change in unrealized gains and losses on derivative hedges, net   22,646    (13,658 ) Less: Reclassification adjustment for net gains included in net income   (24 )   (3,660 ) Change in unrealized gains and losses on derivative hedges   22,622    (17,318 ) Other comprehensive income (loss), before tax   106,757    (50,221 ) Income tax (expense) benefit   (26,405 )   12,618  Other comprehensive income (loss)   80,352    (37,603 ) Comprehensive income  $ 161,685   $ 72,655

Consolidated Statements of Shareholders' Equity UMB Financial Corporation (unaudited, dollars in thousands except per share data)  Preferred Stock  Common Stock  Capital Surplus  Retained Earnings  Accumulated
Other
Comprehensive
(Loss) Income  Treasury Stock  Total Balance - January 1, 2024  $ —   $ 55,057   $ 1,134,363   $ 2,810,824   $ (556,935 )  $ (342,890 )  $ 3,100,419  Total comprehensive income (loss)   —    —    —    110,258    (37,603 )   —    72,655  Dividends ($0.39 per share)   —    —    —    (17,976 )   —    —    (17,976 ) Purchase of treasury stock   —    —    —    —    —    (7,537 )   (7,537 ) Issuances of equity awards, net of forfeitures   —    —    (10,964 )   —    —    11,667    703  Recognition of equity-based compensation   —    —    4,271    —    —    —    4,271  Sale of treasury stock   —    —    70    —    —    60    130  Exercise of stock options   —    —    66    —    —    85    151  Balance - March 31, 2024  $ —   $ 55,057   $ 1,127,806   $ 2,903,106   $ (594,538 )  $ (338,615 )  $ 3,152,816   Balance - January 1, 2025  $ —   $ 55,057   $ 1,145,638   $ 3,174,948   $ (573,050 )  $ (336,052 )  $ 3,466,541  Total comprehensive income   —    —    —    81,333    80,352    —    161,685  Cash dividends declared:  Preferred dividends ($175.00 per share)   —    —    —    (2,013 )   —    —    (2,013 ) Common dividends ($0.40 per share)   —    —    —    (29,402 )   —    —    (29,402 ) Purchase of treasury stock   —    —    —    —    —    (15,434 )   (15,434 ) Issuances of equity awards, net of forfeitures   —    —    (15,595 )   —    —    16,395    800  Recognition of equity-based compensation   —    —    32,419    —    —    —    32,419  Sale of treasury stock   —    —    116    —    —    60    176  Exercise of stock options   —    —    126    —    —    179    305  Common stock issuance   —    —    67,056    —    —    168,085    235,141  Stock issuance for acquisition, net of issuance costs   110,705    23,609    2,763,902    —    —    —    2,898,216  Balance - March 31, 2025  $ 110,705   $ 78,666   $ 3,993,662   $ 3,224,866   $ (492,698 )  $ (166,767 )  $ 6,748,434

Average Balances / Yields and Rates  UMB Financial Corporation (tax - equivalent basis)  (unaudited, dollars in thousands)  Three Months Ended March 31, 2025  2024 Average  Average  Average  Average Balance  Yield/Rate  Balance  Yield/Rate Assets  Loans, net of unearned interest  $ 32,309,697    6.62 %  $ 23,354,043    6.64 % Securities:  Taxable   11,728,148    3.40    9,264,789    2.65  Tax-exempt   4,121,569    3.68    3,732,122    3.42  Total securities   15,849,717    3.47    12,996,911    2.87  Federal funds and resell agreements   555,805    5.07    206,443    5.97  Interest bearing due from banks   6,808,680    4.47    3,304,142    5.44  Trading securities   20,863    7.56    17,893    7.33  Total earning assets   55,544,762    5.44    39,879,432    5.31  Allowance for credit losses   (320,371 )     (222,116 )  Other assets   4,752,484      2,360,092  Total assets  $ 59,976,875     $ 42,017,408   Liabilities and Shareholders' Equity  Interest-bearing deposits  $ 36,856,314    3.34 %  $ 23,459,723    3.84 % Federal funds and repurchase agreements   2,692,907    3.88    2,384,754    4.67  Borrowed funds   570,427    7.92    2,183,494    5.36  Total interest-bearing liabilities   40,119,648    3.44    28,027,971    4.03  Noninterest-bearing demand deposits   13,428,205      10,066,409  Other liabilities   861,375      779,510  Shareholders' equity   5,567,647      3,143,518  Total liabilities and shareholders' equity  $ 59,976,875     $ 42,017,408  Net interest spread     2.00 %     1.28 % Net interest margin     2.96      2.48

Business Segment Information  UMB Financial Corporation (unaudited, dollars in thousands)  Three Months Ended March 31, 2025 Commercial Banking  Institutional Banking  Personal Banking  Total Net interest income  $ 273,916   $ 61,159   $ 62,564   $ 397,639  Provision for credit losses   66,751    435    18,814    86,000  Noninterest income   37,218    103,797    25,183    166,198  Noninterest expense   173,011    107,268    104,508    384,787  Income (loss) before taxes   71,372    57,253    (35,575 )   93,050  Income tax expense (benefit)   8,987    7,210    (4,480 )   11,717  Net income (loss)  $ 62,385   $ 50,043   $ (31,095 )  $ 81,333   Three Months Ended March 31, 2024  Commercial Banking  Institutional Banking  Personal Banking  Total Net interest income  $ 157,982   $ 49,125   $ 32,327   $ 239,434  Provision for credit losses   7,765    234    2,001    10,000  Noninterest income   43,978    91,704    23,562    159,244  Noninterest expense   95,255    97,541    62,008    254,804  Income (loss) before taxes   98,940    43,054    (8,120 )   133,874  Income tax expense (benefit)   16,762    7,733    (879 )   23,616  Net income (loss)  $ 82,178   $ 35,321   $ (7,241 )  $ 110,258

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, 2025.

Non-GAAP Financial Measures

Net operating income available to common shareholders Non-GAAP reconciliations:  UMB Financial Corporation (unaudited, dollars in thousands except per share data)  Three Months Ended March 31, 2025  2024 Net income available to common shareholders (GAAP)  $ 79,320   $ 110,258  Adjustments:  Day 1 acquisition provision expense   62,037    —  Acquisition expense   53,169    431  Severance expense   445    146  FDIC special assessment   629    13,000  Tax-impact of adjustments (i)   (26,722 )   (3,123 ) Total Non-GAAP adjustments (net of tax)   89,558    10,454  Net operating income (Non-GAAP)  $ 168,878   $ 120,712   Earnings per common share - diluted (GAAP)  $ 1.21   $ 2.25  Day 1 acquisition provision expense   0.95    —  Acquisition expense   0.81    0.01  Severance expense   0.01    —  FDIC special assessment   0.01    0.27  Tax-impact of adjustments (i)   (0.41 )   (0.06 ) Operating earnings per common share - diluted (Non-GAAP)  $ 2.58   $ 2.47   GAAP  Return on average assets   0.54 %   1.06 % Return on average common equity   5.86    14.11   Non-GAAP  Operating return on average assets   1.14 %   1.16 % Operating return on average common equity   12.47    15.44  (i) Calculated using the company’s marginal tax rate of 24.0% for 2025 and 23.0% for 2024. Certain merger-related expenses are non-deductible.

Operating noninterest expense and operating efficiency ratio Non-GAAP reconciliations:  UMB Financial Corporation (unaudited, dollars in thousands)  Three Months Ended March 31, 2025  2024 Noninterest expense  $ 384,787   $ 254,804  Adjustments to arrive at operating noninterest expense (pre-tax):  Acquisition expense   53,169    431  Severance expense   445    146  FDIC special assessment   629    13,000  Total Non-GAAP adjustments (pre-tax)   54,243    13,577  Operating noninterest expense (Non-GAAP)  $ 330,544   $ 241,227   Noninterest expense  $ 384,787   $ 254,804  Less: Amortization of other intangibles   17,482    1,960  Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A)  $ 367,305   $ 252,844   Operating noninterest expense  $ 330,544   $ 241,227  Less: Amortization of other intangibles   17,482    1,960  Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B)  $ 313,062   $ 239,267   Net interest income  $ 397,639   $ 239,434  Noninterest income   166,198    159,244  Less: Gains on sales of securities available for sale, net   390    139  Total Non-GAAP Revenue (denominator A)  $ 563,447   $ 398,539   Efficiency ratio (numerator A/denominator A)   65.19 %   63.44 % Operating efficiency ratio (Non-GAAP) (numerator B/denominator A)   55.56    60.04

Operating pre-tax, pre-provision income non-GAAP reconciliations: UMB Financial Corporation (unaudited, dollars in thousands except per share data)  Three Months Ended March 31, 2025  2024 Net interest income (GAAP)  $ 397,639   $ 239,434  Noninterest income (GAAP)   166,198    159,244   Noninterest expense (GAAP)   384,787    254,804  Adjustments to arrive at operating noninterest expense:  Acquisition expense   53,169    431  Severance expense   445    146  FDIC special assessment   629    13,000  Total Non-GAAP adjustments   54,243    13,577  Operating noninterest expense (Non-GAAP)   330,544    241,227  Operating pre-tax, pre-provision income (Non-GAAP)  $ 233,293   $ 157,451   Net interest income earnings per common share - diluted (GAAP)  $ 6.07   $ 4.89  Noninterest income (GAAP)   2.54    3.26  Noninterest expense (GAAP)   5.87    5.21  Acquisition expense   0.81    0.01  Severance expense   0.01    —  FDIC special assessment   0.01    0.27  Operating pre-tax, pre-provision earnings per common share - diluted (Non-GAAP)  $ 3.57   $ 3.22

Operating 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, 2025  2024 Net interest income (GAAP)  $ 397,639   $ 239,434  Adjustments to arrive at net interest income - FTE:  Tax equivalent interest   7,505    6,516  Net interest income - FTE (Non-GAAP)   405,144    245,950   Noninterest income (GAAP)   166,198    159,244   Noninterest expense (GAAP)   384,787    254,804  Adjustments to arrive at operating noninterest expense:  Acquisition expense   53,169    431  Severance expense   445    146  FDIC special assessment   629    13,000  Total Non-GAAP adjustments   54,243    13,577  Operating noninterest expense (Non-GAAP)   330,544    241,227  Operating pre-tax, pre-provision income - FTE (Non-GAAP)  $ 240,798   $ 163,967   Net interest income earnings per common share - diluted (GAAP)  $ 6.07   $ 4.89  Tax equivalent interest   0.11    0.13  Net interest income - FTE (Non-GAAP)   6.18    5.02  Noninterest income (GAAP)   2.54    3.26  Noninterest expense (GAAP)   5.87    5.21  Acquisition expense   0.81    0.01  Severance expense   0.01    —  FDIC special assessment   0.01    0.27  Operating pre-tax, pre-provision income - FTE earnings per common share - diluted (Non-GAAP)  $ 3.68   $ 3.35

Tangible book value non-GAAP reconciliations: UMB Financial Corporation (unaudited, dollars in thousands except share and per share data)  As of March 31, 2025  2024 Total common shareholders' equity (GAAP)  $ 6,637,730   $ 3,152,816  Less: Intangible assets  Goodwill   1,798,451    207,385  Other intangibles, net   557,186    69,052  Total intangibles, net   2,355,637    276,437  Total tangible common shareholders' equity (Non-GAAP)  $ 4,282,093   $ 2,876,379   Total common shares outstanding   75,917,456    48,743,348   Ratio of total common shareholders' equity (book value) per share  $ 87.43   $ 64.68  Ratio of total tangible common shareholders' equity (tangible book value) per share (Non-GAAP)   56.40    59.01

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Contacts

Media Contact: Cynthia Simpson: 816.860.5637
Investor Relations Contact: Kay Gregory: 816.860.7106

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