UMB Financial Corporation Reports Fourth Quarter Net Income of $100.2 Million and Record Full-Year Earnings of $431.7 Million

Rhea-AI Summary

UMB Financial Corporation (Nasdaq: UMBF) reported a strong financial performance for Q4 2022, with GAAP net income reaching $100.2 million or $2.06 per diluted share, up from $88.0 million in Q3 2022 and $78.5 million in Q4 2021. Average loan balances increased by $3.6 billion, or 21.6%, year-over-year, while average deposits grew by 21.2% on a linked-quarter basis. Net interest income rose by 5.0% from Q3 2022, and net interest margin improved by seven basis points. The company's asset quality remained solid, with net charge-offs at 0.04% of average loans.

Positive

• GAAP net income increased to $100.2 million, up 13.6% from Q3 2022 and 27.6% year-over-year.
• Average loans grew by $3.6 billion, or 21.6%, compared to Q4 2021.
• Net interest income increased 5.0% from the previous quarter.
• Net interest margin improved by seven basis points to 2.83%.
• Strong credit quality with net charge-offs at just 0.04% of average loans.

Negative

• Noninterest income decreased by $3.2 million, or 2.5%, compared to the linked quarter.
• Average total assets decreased to $37.3 billion from $38.1 billion year-over-year.

Fourth Quarter 2022 Financial Highlights

• GAAP net income of $100.2 million, or $2.06 per diluted share.
• Average loan balances increased $3.6 billion, or 21.6%, compared to the fourth quarter of 2021.
• Average loans increased 21.0% on a linked-quarter, annualized basis.
• Average deposits grew 21.2% on a linked-quarter, annualized basis.
• Net interest income increased 5.0% from the linked quarter.
• Noninterest income increased 5.7% as compared to the fourth quarter of 2021, equal to 33.9% of total revenue.
• Net interest margin expanded seven basis points from the linked quarter.
• Credit quality remained strong, with net charge-offs of just 0.04% of average loans.

KANSAS CITY, Mo.--(BUSINESS WIRE)--

UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the fourth quarter of 2022 of $100.2 million, or $2.06 per diluted share, compared to $88.0 million, or $1.81 per diluted share, in the third quarter of 2022 (linked quarter) and $78.5 million, or $1.61 per diluted share, in the fourth quarter of 2021.

Net operating income, a non-GAAP financial measure reconciled later in this release to net income, the nearest comparable GAAP measure, was $101.1 million, or $2.07 per diluted share, for the fourth quarter of 2022, compared to $88.3 million, or $1.82 per diluted share, for the linked quarter and $78.9 million, or $1.62 per diluted share, for the fourth quarter of 2021. 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 $134.1 million, or $2.75 per diluted share, for the fourth quarter of 2022, compared to $131.2 million, or $2.70 per diluted share, for the linked quarter, and $107.4 million, or $2.20 per diluted share, for the fourth quarter of 2021. These operating PTPP results represent increases of 2.2% on a linked-quarter basis and 24.8%, compared to the fourth quarter of 2021.

“As we enter the 110th year of business, our strong balance sheet and differentiated business mix position us well to deliver solid returns across all economic cycles, driven by our basic tenet of providing the Unparalleled Customer Experience to all our key constituents,” said Mariner Kemper, chairman, president and chief executive officer. “Our fourth quarter results capped off another year of record earnings, facilitated by strong balance sheet growth, stable credit metrics and contributions from our differentiated fee income sources. Revenue increased 14.4% over the prior year to $1.5 billion, driven by a 13.2% increase in average loans, 8.3% increase in average deposits, and an 18.6% percent increase in noninterest income. In 2022, we generated actual loan growth of nearly $4 billion, or more than three times the $1.1 billion we added in the prior calendar year. Our asset quality metrics remained solid as reflected in net loan charge-off rate of 21 basis points for the year. Nonperforming assets comprised a modest five basis points of total assets. We’ve long focused on operating leverage, and for the full year, we generated positive leverage of 6.7%.”

Fourth Quarter 2022 earnings discussion

Summary of quarterly financial results		UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
		Q4				Q3				Q4
		2022				2022				2021
Net income (GAAP)		$	100,173			$	87,990			$	78,496
Earnings per share (diluted)			2.06				1.81				1.61
Operating pre-tax, pre-provision income (Non-GAAP)			134,054				131,166				107,415
Operating pre-tax, pre-provision earnings per share (diluted)			2.75				2.70				2.20
Operating pre-tax, pre-provision income - FTE (Non-GAAP)			140,717				137,620				113,898
Operating pre-tax, pre-provision earnings per share - FTE (diluted)			2.89				2.83				2.33
Net operating income (Non-GAAP)			101,092				88,259				78,921
Operating earnings per share (diluted)			2.07				1.82				1.62
GAAP
Return on average assets			1.06	%			0.96	%			0.82	%
Return on average equity			15.16				12.90				9.91
Efficiency ratio			63.72				63.58				67.78
Non-GAAP
Operating return on average assets			1.07	%			0.96	%			0.82	%
Operating return on average equity			15.30				12.94				9.97
Operating efficiency ratio			63.39				63.49				67.61

Summary of revenue		UMB Financial Corporation
(unaudited, dollars in thousands)
		Q4				Q3				Q4				CQ vs.				CQ vs.
		2022				2022				2021				LQ				PY
Net interest income		$	245,166			$	233,485			$	210,570			$	11,681			$	34,596
Noninterest income:
Trust and securities processing			59,207				59,586				58,515				(379	)			692
Trading and investment banking			5,251				5,387				6,977				(136	)			(1,726	)
Service charges on deposit accounts			19,758				19,932				21,607				(174	)			(1,849	)
Insurance fees and commissions			459				375				359				84				100
Brokerage fees			13,332				13,840				3,346				(508	)			9,986
Bankcard fees			19,597				19,379				16,642				218				2,955
Investment securities (losses) gains, net			(409	)			(1,345	)			1,448				936				(1,857	)
Other			8,302				11,569				9,888				(3,267	)			(1,586	)
Total noninterest income		$	125,497			$	128,723			$	118,782			$	(3,226	)		$	6,715
Total revenue		$	370,663			$	362,208			$	329,352			$	8,455			$	41,311
Net interest income (FTE)		$	251,829			$	239,939			$	217,053
Net interest margin (FTE)			2.83	%			2.76	%			2.37	%
Total noninterest income as a % of total revenue			33.9				35.5				36.1

Net interest income

• Fourth quarter 2022 net interest income totaled $245.2 million, an increase of $11.7 million, or 5.0% from the linked quarter, driven by an increase of $1.0 billion in average loans and the impact from higher short-term and long-term interest rates.
• Average earning assets increased $831.6 million, or 2.4% from the linked quarter, largely driven by the increase in average loans noted above, an increase of $502.8 million in interest-bearing due from banks, partially offset by a decrease of $488.8 million in average securities.
• Average interest-bearing liabilities increased $987.5 million, or 4.8% from the linked quarter, primarily driven by an increase of $1.5 billion in interest-bearing deposits, partially offset by a decrease of $631.0 million in federal funds purchased and repurchase agreements.
• Net interest margin for the fourth quarter was 2.83%, an increase of seven basis points from the linked quarter, driven by benefits of higher short-term interest rates, loan fees, favorable earning asset mix changes, and the benefit of free funds, partially offset by increased cost of interest-bearing liabilities. Average loan yields increased 89 basis points while earning asset yields increased 67 basis points from the linked quarter. The cost of interest-bearing liabilities increased 94 basis points to 2.22%.
• On a year-over-year basis, net interest income increased $34.6 million, or 16.4%, driven by a $3.6 billion, or 21.6% increase in average loans, coupled with a $402.7 million, or 3.1% increase in average securities. These increases were driven by organic loan growth and a reduction in excess liquidity.
• Average earning assets decreased $1.0 billion, or 2.8%, largely driven by a decrease of $4.6 billion in interest-bearing due from banks, partially offset by the increases in average loans and securities noted above.
• Average deposits increased 5.3% on a linked-quarter basis and decreased 0.8% compared to the fourth quarter of 2021. Average noninterest-bearing demand deposit balances increased 0.5% on a linked-quarter basis and decreased 5.1% compared to the fourth quarter of 2021. Demand deposit balances comprised 39.7% of total deposits, compared to 41.6% in the linked quarter and 41.5% in the fourth quarter of 2021.

Noninterest income

• Fourth quarter 2022 noninterest income decreased $3.2 million, or 2.5%, on a linked-quarter basis, largely due to:
  • Decreases of $2.3 million in company-owned life insurance income and $0.9 million in derivative income, both recorded in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below.
  • A decrease of $0.5 million in brokerage income, largely driven by a decrease in money market income.
  • These decreases were partially offset by an increase of $0.9 million in investment securities gains.
• Compared to the prior year, noninterest income in the fourth quarter of 2022 increased $6.7 million, or 5.7%, primarily driven by:
  • An increase of $10.0 million in brokerage income, largely driven by increases in 12b-1 fees and money market income.
  • An increase of $3.0 million in bankcard income, driven by increased interchange income and reduced rewards expense.
  • An increase of $1.0 million in company-owned life insurance income, recorded in other income. The increase in company-owned life insurance is offset by a proportionate increase in deferred compensation expense as noted below.
  • These increases were partially offset by the following decreases:
    • A decrease of $1.9 million in investment securities gains, largely driven by $2.7 million in gains on sales of available-for-sale securities in the prior year, offset by an increase of $0.9 million in the valuation of the company’s equity investments.
    • A decrease of $1.8 million in service charges on deposits primarily due to reduced corporate service charge income and decreased healthcare services income related to customer transfer and conversion fees.
    • Decreases of $2.0 million in derivative income, recorded in other income, and $1.7 million in trading and investment banking due to decreased trading volume.

Noninterest expense

Summary of noninterest expense		UMB Financial Corporation
(unaudited, dollars in thousands)
		Q4				Q3				Q4				CQ vs.				CQ vs.
		2022				2022				2021				LQ				PY
Salaries and employee benefits		$	135,940			$	136,467			$	131,360			$	(527	)		$	4,580
Occupancy, net			12,409				12,231				10,907				178				1,502
Equipment			18,969				18,811				19,886				158				(917	)
Supplies and services			3,697				3,139				4,646				558				(949	)
Marketing and business development			8,788				6,671				6,528				2,117				2,260
Processing fees			23,545				20,901				19,083				2,644				4,462
Legal and consulting			10,664				10,255				10,858				409				(194	)
Bankcard			7,369				6,551				4,865				818				2,504
Amortization of other intangible assets			1,649				1,092				1,110				557				539
Regulatory fees			4,232				4,200				3,393				32				839
Other			10,556				11,078				9,847				(522	)			709
Total noninterest expense		$	237,818			$	231,396			$	222,483			$	6,422			$	15,335

• Noninterest expense for the fourth quarter of 2022 was $237.8 million, an increase of $6.4 million, or 2.8%, from the linked quarter and an increase of $15.3 million, or 6.9%, from the fourth quarter of 2021.
• The linked-quarter increase in noninterest expense was driven by:
  • Increases of $2.6 million in processing fees and $2.1 million in marketing and business development expense due to the ongoing modernization of the company’s core systems and timing of multiple projects, respectively. The increase in marketing and business development expense was also partially driven by an increase in advertising for various projects and an increase in travel and entertainment expense.
  • Increases of $0.8 million, $0.6 million, and $0.6 million in bankcard expense, supplies expense, and intangible amortization expense, respectively. The increase in amortization expense is related to the acquisition of the healthcare savings account business from Old National Bank, completed in the fourth quarter of 2022.
  • These increases were partially offset by a decrease of $0.5 million in salaries and employee benefits expense. This decrease was driven by a decrease of $2.7 million in employee benefits expense, partially offset by an increase of $2.2 million in salaries and bonus expense. The decrease in employee benefits expense was driven by a $1.5 million decrease in deferred compensation expense and a $1.0 million decrease in payroll taxes, insurance, and 401(k) expense as employee maximums were reached during the quarter. This decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.
• The year-over-year increase in noninterest expense was driven by:
  • An increase of $4.6 million in salaries and employee benefits expense, driven primarily by increases of $7.7 million in salaries and wage expense and $2.3 million in employee benefits expense, primarily due to an increase of $1.1 million in payroll taxes, insurance, and 401(k) expense, and an increase of $0.7 million in deferred compensation expense. These increases were partially offset by a decrease of $5.4 million in bonus and commission expense. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
  • Increases of $4.5 million and $2.3 million in processing fees and marketing and business development expense, respectively, due to the ongoing modernization of the company’s core systems and timing of multiple projects, respectively. The increase in marketing and business development expense was also partially driven by an increase in advertising for various projects and an increase in travel and entertainment expense.
  • Increases of $2.5 million and $1.5 million in bankcard expense and occupancy expense, respectively.

Full year 2022 earnings discussion

Net income for the year ended December 31, 2022 was $431.7 million, or $8.86 per diluted share, compared to $353.0 million, or $7.24 per diluted share in 2021. Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $433.0 million, or $8.88 per diluted share, compared to $354.4 million, or $7.27 per diluted share in 2021. These results represent increases of 22.3% and 22.2%, respectively. 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 $571.7 million, or $11.73 per diluted share, compared to $450.9 million, or $9.26 per diluted share, for 2021. These results represent an increase of 26.8% as compared to 2021.

Summary of year-to-date financial results		UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)		December				December
		YTD				YTD
		2022				2021
Net income (GAAP)		$	431,682			$	353,018
Earnings per share (diluted)			8.86				7.24
Operating pre-tax, pre-provision income (Non-GAAP)			571,671				450,896
Operating pre-tax, pre-provision earnings per share (diluted)			11.73				9.26
Operating pre-tax, pre-provision income - FTE (Non-GAAP)			597,465				477,230
Operating pre-tax, pre-provision earnings per share - FTE (diluted)			12.26				9.79
Net operating income (Non-GAAP)			433,020				354,446
Operating earnings per share (diluted)			8.88				7.27
GAAP
Return on average assets			1.15	%			1.00	%
Return on average equity			15.83				11.43
Efficiency ratio			60.84				65.02
Non-GAAP
Operating return on average assets			1.15	%			1.00	%
Operating return on average equity			15.88				11.47
Operating efficiency ratio			60.72				64.87

• Net interest income increased $98.3 million, or 12.1%, year-over-year due to a $2.1 billion increase in earning assets and the impact from increased short-term and long-term interest rates. The increase in earning assets was primarily driven by a $2.2 billion, or 13.2%, increase in average loans, and an increase of $1.8 billion, or 15.7% in average securities. This growth was partially offset by a decrease of $1.7 billion in interest-bearing due from banks. Average interest-bearing liabilities increased $583.1 million, while noninterest-bearing demand deposits increased $2.0 billion, or 17.9%. The yield on earning assets increased 62 basis points, while the cost of interest-bearing liabilities increased 84 basis points. Net interest margin for 2022 was 2.63%, an increase of 13 basis points from 2021.
• Full-year noninterest income increased $87.1 million, or 18.6%, due to:
  • An increase of $53.4 million in investment securities gains, largely driven by the gain on the sale of the company’s Visa Inc. Class B common shares during the second quarter of 2022.
  • An increase of $30.8 million in brokerage fees, primarily driven by higher 12b-1 and money market income.
  • An increase of $13.1 million in trust and securities processing, due to increases of $12.9 million and $6.5 million in fund services income and corporate trust income, respectively, partially offset by a decrease of $6.3 million in trust income.
  • These increases were partially offset by a decrease of $10.1 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.
• Full-year noninterest expense increased $64.5 million, or 7.7%, primarily due to:
  • An increase of $20.0 million in salaries and employee benefits expense, driven by an increase of $21.8 million in salaries and bonus expense, partially offset by a decrease of $1.9 million in employee benefits expense. The increase in salaries and bonus expense was driven by higher salaries and improved company performance. The decrease in employee benefits expense was due to a decrease of $9.5 million in deferred compensation expense, partially offset by an increase of $5.0 million in payroll taxes, insurance, and 401(k) expense. This decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.
  • An increase of $14.7 million in processing fees due to the ongoing modernization of the company’s core systems and timing of multiple projects.
  • Increases of $7.2 million and $6.7 million in marketing and business development and legal and consulting expense, respectively, due to the timing of multiple projects. The increase in marketing and business development expense was also partially driven by an increase in advertising for various projects and an increase in travel and entertainment expense.
  • An increase of $7.2 million in bankcard expense primarily due to higher processing expense and bankcard fraud losses.
  • Increases of $6.1 million in operational losses and $2.4 million in charitable contributions, both recorded in other expense.

Income taxes

• The company’s effective tax rate was 18.9% for the year ended December 31, 2022, compared to 17.7% for the same period in 2021. The increase in the effective rate in 2022 is primarily attributable to a smaller portion of income being earned from tax-exempt municipal securities.

Balance sheet

• Average total assets for the fourth quarter of 2022 were $37.3 billion compared to $36.3 billion for the linked quarter and $38.1 billion for the same period in 2021.

Summary of average loans and leases - QTD Average										UMB Financial Corporation
(unaudited, dollars in thousands)
		Q4				Q3				Q4				CQ vs.				CQ vs.
		2022				2022				2021				LQ				PY
Commercial and industrial		$	8,891,356			$	8,417,174			$	6,994,935			$	474,182			$	1,896,421
Specialty lending			559,200				559,797				484,552				(597	)			74,648
Commercial real estate			7,323,877				6,892,484				6,218,138				431,393				1,105,739
Consumer real estate			2,678,771				2,574,926				2,272,498				103,845				406,273
Consumer			145,811				142,348				107,841				3,463				37,970
Credit cards			457,043				438,235				414,267				18,808				42,776
Leases and other			238,603				259,298				200,417				(20,695	)			38,186
Total loans		$	20,294,661			$	19,284,262			$	16,692,648			$	1,010,399			$	3,602,013

• Average loans for the fourth quarter of 2022 increased 5.2% on a linked-quarter basis and 21.6% compared to the fourth quarter of 2021.

Summary of average securities - QTD Average		UMB Financial Corporation
(unaudited, dollars in thousands)
		Q4				Q3				Q4				CQ vs.				CQ vs.
		2022				2022				2021				LQ				PY
Securities available for sale:
U.S. Treasury		$	752,339			$	746,429			$	69,398			$	5,910			$	682,941
U.S. Agencies			171,171				173,980				93,619				(2,809	)			77,552
Mortgage-backed			4,027,120				4,363,838				7,395,528				(336,718	)			(3,368,408	)
State and political subdivisions			1,353,307				1,600,043				3,437,841				(246,736	)			(2,084,534	)
Corporates			366,131				381,151				236,743				(15,020	)			129,388
Collateralized loan obligations			328,475				300,475				38,099				28,000				290,376
Total securities available for sale		$	6,998,543			$	7,565,916			$	11,271,228			$	(567,373	)		$	(4,272,685	)
Securities held to maturity:
U.S. Agencies		$	123,077			$	123,048			$	—			$	29			$	123,077
Mortgage-backed			2,983,489				3,039,998				105,622				(56,509	)			2,877,867
State and political subdivisions			2,765,717				2,621,633				1,089,587				144,084				1,676,130
Total securities held to maturity		$	5,872,283			$	5,784,679			$	1,195,209			$	87,604			$	4,677,074
Trading securities			11,799				5,651				29,426				6,148				(17,627	)
Other securities			315,748				330,950				299,829				(15,202	)			15,919
Total securities		$	13,198,373			$	13,687,196			$	12,795,692			$	(488,823	)		$	402,681

• Average total securities decreased 3.6% on a linked-quarter basis and increased 3.1% compared to the fourth quarter of 2021.

Summary of average deposits - QTD Average						UMB Financial Corporation
(unaudited, dollars in thousands)
		Q4				Q3				Q4				CQ vs.				CQ vs.
		2022				2022				2021				LQ				PY
Deposits:
Noninterest-bearing demand		$	12,454,413			$	12,394,251			$	13,124,918			$	60,162			$	(670,505	)
Interest-bearing demand and savings			17,952,568				16,723,205				17,809,817				1,229,363				142,751
Time deposits			966,969				679,994				701,836				286,975				265,133
Total deposits		$	31,373,950			$	29,797,450			$	31,636,571			$	1,576,500			$	(262,621	)
Noninterest bearing deposits as % of total			39.7	%			41.6	%			41.5	%

• Average deposits increased 5.3% on a linked-quarter basis and decreased 0.8% compared to the fourth quarter of 2021.

Capital

Capital information		UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
		December 31, 2022				September 30, 2022				December 31, 2021
Total equity		$	2,667,093			$	2,523,545			$	3,145,424
Book value per common share			55.20				52.24				64.95
Tangible book value per common share (Non-GAAP)			49.28				48.19				61.05
Regulatory capital:
Common equity Tier 1 capital		$	3,129,030			$	3,132,209			$	2,885,576
Tier 1 capital			3,129,030				3,132,209				2,885,576
Total capital			3,682,619				3,679,116				3,324,284
Regulatory capital ratios:
Common equity Tier 1 capital ratio			10.62	%			11.18	%			12.05	%
Tier 1 risk-based capital ratio			10.62				11.18				12.05
Total risk-based capital ratio			12.50				13.13				13.88
Tier 1 leverage ratio			8.43				8.66				7.61

• At December 31, 2022, 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
		2022				2022				2022				2022				2021
Net charge-offs - total loans		$	2,189			$	1,173			$	28,128			$	8,378			$	8,061
Net loan charge-offs as a % of total average loans			0.04	%			0.02	%			0.62	%			0.20	%			0.19	%
Loans over 90 days past due		$	1,617			$	2,513			$	3,446			$	3,600			$	2,633
Loans over 90 days past due as a % of total loans			0.01	%			0.01	%			0.02	%			0.02	%			0.02	%
Nonaccrual and restructured loans		$	19,269			$	19,817			$	18,117			$	110,356			$	92,300
Nonaccrual and restructured loans as a % of total loans			0.09	%			0.10	%			0.10	%			0.62	%			0.54	%
Provision for credit losses		$	9,000			$	22,000			$	13,400			$	(6,500	)		$	8,500

• Provision for credit losses for the fourth quarter decreased $13.0 million from the linked quarter and increased $0.5 million from the fourth quarter of 2021. These changes are driven by loan growth, portfolio credit metric changes, and changes in macro-economic metrics in the current period as compared to the prior periods.
• Net charge-offs for the fourth quarter totaled $2.2 million, or 0.04%, of average loans, compared to $1.2 million, or 0.02%, of average loans in the linked quarter, and $8.1 million, or 0.19%, of average loans for the fourth quarter of 2021. On a year-to-date basis, net charge-offs totaled $39.9 million, or 0.21%, of average loans, compared to $44.9 million, or 0.27%, of average loans, for the same period in 2021.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors declared a $0.38 per share quarterly cash dividend, payable on April 3, 2023, to shareholders of record at the close of business on March 10, 2023.

Conference Call

The company plans to host a conference call to discuss its fourth quarter 2022 earnings results on Wednesday, January 25, 2023, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 844-200-6205 or (international) 646-904-5544 and requesting to join the UMB Financial call with access code 216125. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 4Q 2022 Conference Call

A replay of the conference call may be heard through February 8, 2023 by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 239596. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial Information

In this release, we may provide information about net operating income, operating earnings per share – diluted (operating EPS), operating return on average equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, operating efficiency ratio, operating pre-tax, pre-provision income (operating PTPP), operating pre-tax, pre-provision earnings per share – diluted (operating PTPP EPS), operating pre-tax, pre-provision income on a fully tax equivalent basis (operating PTPP-FTE), operating pre-tax, pre-provision FTE earnings per share – diluted (operating PTPP-FTE EPS), tangible shareholders’ equity, 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, operating PTPP, operating PTPP EPS, operating PTPP-FTE, operating 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).

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, severance expense, and COVID-19 related expense.

Operating PTPP-FTE for the relevant period is defined as GAAP net interest income on a fully tax equivalent basis plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions, severance expense and COVID-19 related 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, 2021, 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 other challenges and uncertainties related to the COVID-19 pandemic, such as 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 Russia’s military action in Ukraine, such as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except to the extent required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC.

About UMB:

UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas. As the company’s reach continues to grow, it also serves business clients nationwide and institutional clients in several countries. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn.

Consolidated Balance Sheets		UMB Financial Corporation
(dollars in thousands)
		December 31,
		2022				2021
		(unaudited)				(audited)
ASSETS
Loans		$	21,031,189			$	17,170,871
Allowance for credit losses on loans			(191,836	)			(194,771	)
Net loans			20,839,353				16,976,100
Loans held for sale			1,978				1,277
Securities:
Available for sale			7,006,347				11,976,514
Held to maturity, net of allowance for credit losses			5,859,192				1,478,476
Trading securities			17,980				31,875
Other securities			349,758				327,098
Total securities			13,233,277				13,813,963
Federal funds sold and resell agreements			958,597				1,216,357
Interest-bearing due from banks			1,179,105				8,841,906
Cash and due from banks			500,682				413,821
Premises and equipment, net			263,649				270,933
Accrued income			189,231				131,102
Goodwill			207,385				174,518
Other intangibles, net			78,724				14,416
Other assets			1,060,480				839,091
Total assets		$	38,512,461			$	42,693,484
LIABILITIES
Deposits:
Noninterest-bearing demand		$	13,260,363			$	16,342,642
Interest-bearing demand and savings			18,461,632				18,405,644
Time deposits under $250,000			379,087				403,660
Time deposits of $250,000 or more			538,051				447,981
Total deposits			32,639,133				35,599,927
Federal funds purchased and repurchase agreements			2,222,167				3,238,435
Long-term debt			381,311				271,544
Accrued expenses and taxes			239,624				249,492
Other liabilities			363,133				188,662
Total liabilities			35,845,368				39,548,060
SHAREHOLDERS' EQUITY
Common stock			55,057				55,057
Capital surplus			1,125,949				1,110,520
Retained earnings			2,536,086				2,176,998
Accumulated other comprehensive (loss) income, net			(702,735	)			126,314
Treasury stock			(347,264	)			(323,465	)
Total shareholders' equity			2,667,093				3,145,424
Total liabilities and shareholders' equity		$	38,512,461			$	42,693,484

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,
		2022				2021				2022				2021
		(unaudited)				(unaudited)				(unaudited)				(audited)
INTEREST INCOME
Loans		$	273,648			$	155,324			$	810,007			$	619,273
Securities:
Taxable interest			51,441				37,376				192,121				127,625
Tax-exempt interest			25,105				24,140				97,190				98,305
Total securities income			76,546				61,516				289,311				225,930
Federal funds and resell agreements			7,106				2,286				19,109				10,048
Interest-bearing due from banks			9,373				2,182				18,582				5,417
Trading securities			139				275				511				854
Total interest income			366,812				221,583				1,137,520				861,522
INTEREST EXPENSE
Deposits			97,484				6,299				167,553				26,412
Federal funds and repurchase agreements			18,848				1,673				40,703				6,934
Other			5,314				3,041				15,467				12,655
Total interest expense			121,646				11,013				223,723				46,001
Net interest income			245,166				210,570				913,797				815,521
Provision for credit losses			9,000				8,500				37,900				20,000
Net interest income after provision for credit losses			236,166				202,070				875,897				795,521
NONINTEREST INCOME
Trust and securities processing			59,207				58,515				237,207				224,126
Trading and investment banking			5,251				6,977				23,201				30,939
Service charges on deposit accounts			19,758				21,607				85,167				86,056
Insurance fees and commissions			459				359				1,338				1,309
Brokerage fees			13,332				3,346				43,019				12,171
Bankcard fees			19,597				16,642				73,451				64,576
Investment securities (losses) gains, net			(409	)			1,448				58,444				5,057
Other			8,302				9,888				32,406				42,941
Total noninterest income			125,497				118,782				554,233				467,175
NONINTEREST EXPENSE
Salaries and employee benefits			135,940				131,360				524,431				504,442
Occupancy, net			12,409				10,907				48,848				47,345
Equipment			18,969				19,886				74,259				78,398
Supplies and services			3,697				4,646				13,590				14,986
Marketing and business development			8,788				6,528				25,699				18,533
Processing fees			23,545				19,083				82,227				67,563
Legal and consulting			10,664				10,858				39,095				32,406
Bankcard			7,369				4,865				26,367				19,145
Amortization of other intangible assets			1,649				1,110				5,037				4,757
Regulatory fees			4,232				3,393				15,378				11,894
Other			10,556				9,847				43,188				34,167
Total noninterest expense			237,818				222,483				898,119				833,636
Income before income taxes			123,845				98,369				532,011				429,060
Income tax expense			23,672				19,873				100,329				76,042
NET INCOME		$	100,173			$	78,496			$	431,682			$	353,018
PER SHARE DATA
Net income – basic		$	2.07			$	1.62			$	8.93			$	7.31
Net income – diluted			2.06				1.61				8.86				7.24
Dividends			0.38				0.37				1.49				1.38
Weighted average shares outstanding – basic			48,310,993				48,371,296				48,340,922				48,271,462
Weighted average shares outstanding – diluted			48,735,088				48,854,383				48,747,399				48,738,292

Consolidated Statements of Comprehensive Income		UMB Financial Corporation
(dollars in thousands)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2022				2021				2022				2021
		(unaudited)				(unaudited)				(unaudited)				(audited)
Net income		$	100,173			$	78,496			$	431,682			$	353,018
Other comprehensive income (loss), before tax:
Unrealized gains and losses on debt securities:
Change in unrealized holding gains and losses, net			64,924				(46,275	)			(1,137,417	)			(244,695	)
Less: Reclassification adjustment for gains included in net income			—				(2,739	)			—				(7,817	)
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity			11,186				—				36,894				—
Change in unrealized gains and losses on debt securities			76,110				(49,014	)			(1,100,523	)			(252,512	)
Unrealized gains and losses on derivative hedges:
Change in unrealized gains and losses on derivative hedges, net			170				(407	)			12,608				3,106
Less: Reclassification adjustment for gains included in net income			(1,942	)			(802	)			(5,353	)			(3,352	)
Change in unrealized gains and losses on derivative hedges			(1,772	)			(1,209	)			7,255				(246	)
Other comprehensive income (loss), before tax			74,338				(50,223	)			(1,093,268	)			(252,758	)
Income tax (expense) benefit			(17,813	)			12,230				264,219				60,732
Other comprehensive income (loss)			56,525				(37,993	)			(829,049	)			(192,026	)
Comprehensive income (loss)		$	156,698			$	40,503			$	(397,367	)		$	160,992

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, 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
(unaudited)
Balance - January 1, 2022		$	55,057			$	1,110,520			$	2,176,998			$	126,314			$	(323,465	)		$	3,145,424
Total comprehensive income (loss)			—				—				431,682				(829,049	)			—				(397,367	)
Dividends ($1.49 per share)			—				—				(72,594	)			—				—				(72,594	)
Purchase of treasury stock			—				—				—				—				(31,997	)			(31,997	)
Issuances of equity awards, net of forfeitures			—				(6,143	)			—				—				6,822				679
Recognition of equity-based compensation			—				20,812				—				—				—				20,812
Sale of treasury stock			—				351				—				—				245				596
Exercise of stock options			—				409				—				—				1,131				1,540
Balance - December 31, 2022		$	55,057			$	1,125,949			$	2,536,086			$	(702,735	)		$	(347,264	)		$	2,667,093

Average Balances / Yields and Rates		UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
		Three Months Ended December 31,
		2022								2021
		Average				Average				Average				Average
		Balance				Yield/Rate				Balance				Yield/Rate
Assets
Loans, net of unearned interest		$	20,294,661				5.35	%		$	16,692,648				3.69	%
Securities:
Taxable			9,382,837				2.18				8,607,960				1.72
Tax-exempt			3,803,737				3.31				4,158,306				2.92
Total securities			13,186,574				2.50				12,766,266				2.11
Federal funds and resell agreements			656,092				4.30				1,099,090				0.83
Interest bearing due from banks			1,135,356				3.28				5,712,993				0.15
Trading securities			11,799				5.31				29,426				4.41
Total earning assets			35,284,482				4.20				36,300,423				2.49
Allowance for credit losses			(188,299	)							(196,891	)
Other assets			2,243,437								1,974,579
Total assets		$	37,339,620							$	38,078,111
Liabilities and Shareholders' Equity
Interest-bearing deposits		$	18,919,537				2.04	%		$	18,511,653				0.13	%
Federal funds and repurchase agreements			2,424,171				3.08				2,611,151				0.25
Borrowed funds			396,874				5.31				271,296				4.45
Total interest-bearing liabilities			21,740,582				2.22				21,394,100				0.20
Noninterest-bearing demand deposits			12,454,413								13,124,918
Other liabilities			522,932								417,015
Shareholders' equity			2,621,693								3,142,078
Total liabilities and shareholders' equity		$	37,339,620							$	38,078,111
Net interest spread							1.98	%							2.29	%
Net interest margin							2.83								2.37

Average Balances / Yields and Rates		UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
		Year Ended December 31,
		2022								2021
		Average				Average				Average				Average
		Balance				Yield/Rate				Balance				Yield/Rate
Assets
Loans, net of unearned interest		$	18,823,810				4.30	%		$	16,629,867				3.72	%
Securities:
Taxable			9,616,691				2.00				7,422,432				1.72
Tax-exempt			3,885,153				3.16				4,246,943				2.93
Total securities			13,501,844				2.33				11,669,375				2.16
Federal funds and resell agreements			965,911				1.98				1,234,533				0.81
Interest bearing due from banks			2,408,468				0.77				4,063,089				0.13
Trading securities			12,076				4.96				23,480				4.33
Total earning assets			35,712,109				3.26				33,620,344				2.64
Allowance for credit losses			(184,072	)							(204,705	)
Other assets			2,050,976								1,912,911
Total assets		$	37,579,013							$	35,328,550
Liabilities and Shareholders' Equity
Interest-bearing deposits		$	18,063,498				0.93	%		$	17,678,122				0.15	%
Federal funds and repurchase agreements			2,777,089				1.47				2,618,034				0.26
Borrowed funds			309,204				5.00				270,498				4.68
Total interest-bearing liabilities			21,149,791				1.06				20,566,654				0.22
Noninterest-bearing demand deposits			13,264,146								11,254,761
Other liabilities			438,772								418,021
Shareholders' equity			2,726,304								3,089,114
Total liabilities and shareholders' equity		$	37,579,013							$	35,328,550
Net interest spread							2.20	%							2.42	%
Net interest margin							2.63								2.50

Business Segment Information		UMB Financial Corporation
(unaudited, dollars in thousands)
		Three Months Ended December 31, 2022
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	151,856			$	55,063			$	38,247			$	245,166
Provision for credit losses			7,668				93				1,239				9,000
Noninterest income			22,233				80,055				23,209				125,497
Noninterest expense			86,682				86,791				64,345				237,818
Income (loss) before taxes			79,739				48,234				(4,128	)			123,845
Income tax expense (benefit)			15,242				9,219				(789	)			23,672
Net income (loss)		$	64,497			$	39,015			$	(3,339	)		$	100,173
		Three Months Ended December 31, 2021
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	149,834			$	23,044				37,692			$	210,570
Provision for credit losses			7,446				90				964				8,500
Noninterest income			22,110				70,713				25,959				118,782
Noninterest expense			84,541				74,885				63,057				222,483
Income (loss) before taxes			79,957				18,782				(370	)			98,369
Income tax expense (benefit)			16,153				3,794				(74	)			19,873
Net income (loss)		$	63,804			$	14,988			$	(296	)		$	78,496
		Year Ended December 31, 2022
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	596,031			$	159,679			$	158,087			$	913,797
Provision for credit losses			32,851				495				4,554				37,900
Noninterest income			122,614				323,794				107,825				554,233
Noninterest expense			332,912				320,976				244,231				898,119
Income before taxes			352,882				162,002				17,127				532,011
Income tax expense			66,548				30,551				3,230				100,329
Net income		$	286,334			$	131,451			$	13,897			$	431,682
		Year Ended December 31, 2021
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	579,992			$	87,644			$	147,885			$	815,521
Provision for credit losses			15,543				630				3,827				20,000
Noninterest income			84,417				273,483				109,275				467,175
Noninterest expense			306,424				292,142				235,070				833,636
Income before taxes			342,442				68,355				18,263				429,060
Income tax expense			60,691				12,113				3,238				76,042
Net income		$	281,751			$	56,242			$	15,025			$	353,018

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, 2022.

Non-GAAP Financial Measures

Net operating income Non-GAAP reconciliations:		UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
		Three Months Ended December 31,								Year Ended December 31,
		2022				2021				2022				2021
Net income (GAAP)		$	100,173			$	78,496			$	431,682			$	353,018
Adjustments:
Acquisition expense			851				18				922				18
Severance expense			358				359				838				1,122
COVID-19 related expense			—				169				—				696
Tax-impact of adjustments (i)			(290	)			(121	)			(422	)			(408	)
Total Non-GAAP adjustments (net of tax)			919				425				1,338				1,428
Net operating income (Non-GAAP)		$	101,092			$	78,921			$	433,020			$	354,446
Earnings per share - diluted (GAAP)		$	2.06			$	1.61			$	8.86			$	7.24
Acquisition expense			0.02				—				0.02				—
Severance expense			0.01				0.01				0.02				0.02
COVID-19 related expense			—				—				—				0.02
Tax-impact of adjustments (i)			(0.02	)			—				(0.02	)			(0.01	)
Operating earnings per share - diluted (Non-GAAP)		$	2.07			$	1.62			$	8.88			$	7.27
GAAP
Return on average assets			1.06	%			0.82	%			1.15	%			1.00	%
Return on average equity			15.16				9.91				15.83				11.43
Non-GAAP
Operating return on average assets			1.07	%			0.82	%			1.15	%			1.00	%
Operating return on average equity			15.30				9.97				15.88				11.47

(i) Calculated using the company’s marginal tax rate of 24.0% in 2022 and 22.2% in 2021.

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,
		2022				2021				2022				2021
Noninterest expense		$	237,818			$	222,483			$	898,119			$	833,636
Adjustments to arrive at operating noninterest expense (pre-tax):
Acquisition expense			851				18				922				18
Severance expense			358				359				838				1,122
COVID-19 related expense			—				169				—				696
Total Non-GAAP adjustments (pre-tax)			1,209				546				1,760				1,836
Operating noninterest expense (Non-GAAP)		$	236,609			$	221,937			$	896,359			$	831,800
Noninterest expense		$	237,818			$	222,483			$	898,119			$	833,636
Less: Amortization of other intangibles			1,649				1,110				5,037				4,757
Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A)		$	236,169			$	221,373			$	893,082			$	828,879
Operating noninterest expense		$	236,609			$	221,937			$	896,359			$	831,800
Less: Amortization of other intangibles			1,649				1,110				5,037				4,757
Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B)		$	234,960			$	220,827			$	891,322			$	827,043
Net interest income		$	245,166			$	210,570			$	913,797			$	815,521
Noninterest income			125,497				118,782				554,233				467,175
Less: Gains on sales of securities available for sale, net			—				2,739				—				7,817
Total Non-GAAP Revenue (denominator A)		$	370,663			$	326,613			$	1,468,030			$	1,274,879
Efficiency ratio (numerator A/denominator A)			63.72	%			67.78	%			60.84	%			65.02	%
Operating efficiency ratio (Non-GAAP) (numerator B/denominator A)			63.39				67.61				60.72				64.87

Operating 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,
		2022				2021				2022				2021
Net interest income (GAAP)		$	245,166			$	210,570			$	913,797			$	815,521
Noninterest income (GAAP)			125,497				118,782				554,233				467,175
Noninterest expense (GAAP)			237,818				222,483				898,119				833,636
Adjustments to arrive at operating noninterest expense:
Acquisition expense			851				18				922				18
Severance expense			358				359				838				1,122
COVID-19 related expense			—				169				—				696
Total Non-GAAP adjustments			1,209				546				1,760				1,836
Operating noninterest expense (Non-GAAP)			236,609				221,937				896,359				831,800
Operating pre-tax, pre-provision income (Non-GAAP)		$	134,054			$	107,415			$	571,671			$	450,896
Net interest income earnings per share - diluted (GAAP)		$	5.03			$	4.31			$	18.75			$	16.73
Noninterest income (GAAP)			2.57				2.43				11.37				9.59
Noninterest expense (GAAP)			4.88				4.55				18.43				17.10
Acquisition expense			0.02				—				0.02				—
Severance expense			0.01				0.01				0.02				0.02
COVID-19 related expense			—				—				—				0.02
Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)		$	2.75			$	2.20			$	11.73			$	9.26

Operating 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,
		2022				2021				2022				2021
Net interest income (GAAP)		$	245,166			$	210,570			$	913,797			$	815,521
Adjustments to arrive at net interest income - FTE:
Tax equivalent interest			6,663				6,483				25,794				26,334
Net interest income - FTE (Non-GAAP)			251,829				217,053				939,591				841,855
Noninterest income (GAAP)			125,497				118,782				554,233				467,175
Noninterest expense (GAAP)			237,818				222,483				898,119				833,636
Adjustments to arrive at operating noninterest expense:
Acquisition expense			851				18				922				18
Severance expense			358				359				838				1,122
COVID-19 related expense			—				169				—				696
Total Non-GAAP adjustments			1,209				546				1,760				1,836
Operating noninterest expense (Non-GAAP)			236,609				221,937				896,359				831,800
Operating pre-tax, pre-provision income - FTE (Non-GAAP)		$	140,717			$	113,898			$	597,465			$	477,230
Net interest income earnings per share - diluted (GAAP)		$	5.03			$	4.31			$	18.75			$	16.73
Tax equivalent interest			0.14				0.13				0.53				0.53
Net interest income - FTE (Non-GAAP)			5.17				4.44				19.28				17.26
Noninterest income (GAAP)			2.57				2.43				11.37				9.59
Noninterest expense (GAAP)			4.88				4.55				18.43				17.10
Acquisition expense			0.02				—				0.02				—
Severance expense			0.01				0.01				0.02				0.02
COVID-19 related expense			—				—				—				0.02
Operating pre-tax, pre-provision income - FTE earnings per share - diluted (Non-GAAP)		$	2.89			$	2.33			$	12.26			$	9.79

Tangible book value non-GAAP reconciliations:		UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
		As of December 31,
		2022				2021
Total shareholders' equity (GAAP)		$	2,667,093			$	3,145,424
Less: Intangible assets
Goodwill			207,385				174,518
Other intangibles, net			78,724				14,416
Total intangibles, net			286,109				188,934
Total tangible shareholders' equity (Non-GAAP)		$	2,380,984			$	2,956,490
Total shares outstanding			48,319,404				48,430,805
Ratio of total shareholders' equity (book value) per share		$	55.20			$	64.95
Ratio of total tangible shareholders' equity (tangible book value) per share (Non-GAAP)			49.28				61.05

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230124005047/en/

Media Contact:

Kaele Palmer: 816.860.7315

Kaele.Palmer@umb.com

Investor Relations Contact:

Kay Gregory: 816.860.7106

Source: UMB Financial Corporation

FAQ

What are the Q4 2022 earnings for UMB Financial Corporation (UMBF)?

UMB Financial Corporation reported Q4 2022 earnings of $100.2 million or $2.06 per diluted share.

How did average loan balances perform in Q4 2022 for UMBF?

Average loan balances increased by $3.6 billion, or 21.6%, compared to Q4 2021.

What was the net interest income for UMB Financial Corporation in Q4 2022?

Net interest income for Q4 2022 was $245.2 million, representing a 5.0% increase from Q3 2022.

How did noninterest income change for UMBF in Q4 2022?

Noninterest income decreased by $3.2 million, or 2.5%, compared to the linked quarter.

What is UMB Financial Corporation's (UMBF) net charge-off rate?

The net charge-off rate for UMBF was 0.04% of average loans in Q4 2022.