UMB Financial Corporation Reports Fourth Quarter Net Income of $120.0 Million and Net Operating Income(i) of $122.6 Million. Full-Year 2024 Net Income of $441.2 Million; Net Operating Income(i) of $461.7 Million.

Rhea-AI Summary

UMB Financial (UMBF) reported strong Q4 2024 results with net income of $120.0 million ($2.44 per diluted share) and net operating income of $122.6 million ($2.49 per diluted share). Key highlights include:

- Average loans increased 14.8% on a linked-quarter basis to $25.3 billion
- Average deposits grew 30.9% to $38.0 billion
- Net interest income rose 8.7% from Q3 2024
- Net interest margin improved by 11 basis points to 2.57%
- Credit quality remained strong with net charge-offs of 0.10%

For full-year 2024, UMBF achieved record results with:
- Net income of $441.2 million
- Net operating income of $461.7 million
- Net interest income exceeding $1.0 billion
- Noninterest income of $628.1 million

The company announced its merger with Heartland Financial is scheduled to close on January 31, 2025.

Positive

• Q4 net income increased 69.2% YoY to $120.0 million
• Average loans grew 14.8% annualized in Q4
• Average deposits increased 30.9% annualized
• Net interest margin improved 11 basis points to 2.57%
• Strong credit quality with only 0.10% net charge-offs
• Record full-year net income of $441.2 million
• Noninterest income grew 17.8% YoY in Q4

Negative

• Cost of interest-bearing liabilities at 3.79%
• Average loan yields decreased 33 basis points QoQ
• Noninterest expense increased 7.1% QoQ to $270.4 million

Insights

Financial Analyst

UMB Financial's Q4 results showcase exceptional operational execution and strategic positioning. The net interest margin expanded 11 basis points to 2.57%, driven by improved funding mix with noninterest-bearing deposits increasing 12.0% QoQ. This demonstrates strong deposit franchise value in a competitive environment.

The diversified revenue model continues to deliver, with fee income contributing 38.1% of total revenue. Notable strength in trust services ($76.9 million), brokerage ($18.6 million) and bankcard fees ($21.1 million) reflects successful cross-selling and market share gains. The operating efficiency ratio improved to 61.12%, indicating disciplined cost management despite growth investments.

The imminent Heartland Financial merger (closing January 31, 2025) represents a transformative opportunity, expanding UMB's footprint and creating potential for significant revenue synergies in wealth management and commercial banking. The combined entity's enhanced scale should drive operating leverage and competitive advantages in key markets.

Credit quality metrics remain pristine with minimal net charge-offs, reflecting conservative underwriting and strong risk management. The 14.8% annualized loan growth was broad-based across commercial and industrial and CRE segments, indicating healthy underlying demand and relationship expansion.

Fourth Quarter 2024 Financial Highlights

• GAAP net income of $120.0 million, or $2.44 per diluted share.
• Net operating income⁽ⁱ⁾ of $122.6 million, or $2.49 per diluted share.
• Average loans increased 14.8% on a linked-quarter, annualized basis, to $25.3 billion.
• Average loans increased $2.2 billion, or 9.4%, as compared to the fourth quarter of 2023.
• Average deposits increased 30.9% on a linked-quarter, annualized basis, to $38.0 billion.
• Credit quality remained strong, with net charge-offs of just 0.10% of average loans for the year ended December 31, 2024.

KANSAS CITY, Mo.--(BUSINESS WIRE)-- UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the fourth quarter of 2024 of $120.0 million, or $2.44 per diluted share, compared to $109.6 million, or $2.23 per diluted share, in the third quarter (linked quarter) and $70.9 million, or $1.45 per diluted share, in the fourth quarter of 2023.

Net operating income, a non-GAAP financial measure reconciled later in this release to net income, the nearest comparable GAAP measure, was $122.6 million, or $2.49 per diluted share, for the fourth quarter of 2024, compared to $110.4 million, or $2.25 per diluted share, for the linked quarter and $112.0 million, or $2.29 per diluted share, for the fourth quarter of 2023. 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 $166.9 million, or $3.39 per diluted share, for the fourth quarter of 2024, compared to $154.6 million, or $3.15 per diluted share, for the linked quarter, and $134.9 million, or $2.76 per diluted share, for the fourth quarter of 2023. These operating PTPP results represent increases of 8.0% on a linked-quarter basis and 23.7% compared to the fourth quarter of 2023.

“Our fourth quarter financial results punctuated a successful year for UMB Financial, driven by strong operating fundamentals that are the core of our investment thesis for shareholders,” said Mariner Kemper, UMB Financial Corporation chairman and chief executive officer. “Our 2024 results reflect strong growth on both sides of the balance sheet, continued momentum and new client acquisitions in many of our fee income businesses, excellent credit quality metrics and disciplined expense management. We set new company records with annual net income of $441.2 million, net operating income of $461.7 million, net interest income that surpassed $1.0 billion, and noninterest income of $628.1 million.

“For the fourth quarter, net interest income increased 8.7% sequentially driven by both an 11-basis-point increase in net interest margin and a 15.6% linked-quarter annualized increase in average earning assets. Additionally, the strength of our fee income businesses propelled a 4.1% increase in noninterest income compared to the third quarter of 2024. Average loan balances increased 14.8% on a linked-quarter annualized basis, driven by top line loan production of $1.6 billion, another record for us.

“With the previously announced receipt of necessary approvals, we are excited to close our merger with Heartland Financial, slated for January 31, 2025. Teams at both companies have been diligently working to prepare for the closing and integration of our two franchises.”

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

Fourth Quarter 2024 earnings discussion

Summary of quarterly financial results		UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
		Q4				Q3				Q4
		2024				2024				2023
Net income (GAAP)		$	119,997			$	109,643			$	70,923
Earnings per share - diluted (GAAP)			2.44				2.23				1.45
Operating pre-tax, pre-provision income (Non-GAAP)(i)			166,901				154,594				134,901
Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)(i)			3.39				3.15				2.76
Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i)			173,270				161,195				141,571
Operating pre-tax, pre-provision earnings per share - FTE - diluted (Non-GAAP)(i)			3.52				3.28				2.90
Net operating income (Non-GAAP)(i)			122,577				110,358				112,038
Operating earnings per share - diluted (Non-GAAP)(i)			2.49				2.25				2.29
GAAP
Return on average assets			1.06	%			1.01	%			0.69	%
Return on average equity			13.53				12.63				9.52
Efficiency ratio			61.83				61.69				77.65
Non-GAAP(i)
Operating return on average assets			1.08	%			1.01	%			1.10	%
Operating return on average equity			13.82				12.71				15.04
Operating efficiency ratio			61.12				61.46				63.06

(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)
		Q4				Q3				Q4				CQ vs.				CQ vs.
		2024				2024				2023				LQ				PY
Net interest income		$	268,974			$	247,376			$	230,522			$	21,598			$	38,452
Noninterest income:
Trust and securities processing			76,861				74,222				66,584				2,639				10,277
Trading and investment banking			6,185				7,118				5,751				(933	)			434
Service charges on deposit accounts			21,405				20,089				21,330				1,316				75
Insurance fees and commissions			425				282				238				143				187
Brokerage fees			18,635				15,749				13,439				2,886				5,196
Bankcard fees			21,089				22,394				18,672				(1,305	)			2,417
Investment securities gains, net			593				2,623				1,014				(2,030	)			(421	)
Other			20,018				16,266				13,226				3,752				6,792
Total noninterest income		$	165,211			$	158,743			$	140,254			$	6,468			$	24,957
Total revenue		$	434,185			$	406,119			$	370,776			$	28,066			$	63,409
Net interest income (FTE)		$	275,343			$	253,977			$	237,192
Net interest margin (FTE)			2.57	%			2.46	%			2.46	%
Total noninterest income as a % of total revenue			38.1				39.1				37.8

Net interest income

• Fourth quarter 2024 net interest income totaled $269.0 million, an increase of $21.6 million, or 8.7%, from the linked quarter, driven primarily by balance sheet growth, favorable reinvestment yields, as well as decreased interest expense due to the mix shift in the funding composition and repricing of deposits following the reduction in short-term interest rates. These benefits were partially offset by repricing of variable rate loans in response to reductions in the Secured Overnight Financing Rate (SOFR) and Prime rates.
• Average earning assets increased $1.6 billion, or 3.9%, from the linked quarter, largely driven by increases of $902.6 million in average loans, $585.6 million in average securities, and $101.7 million in federal funds sold and resell agreements.
• Average interest-bearing liabilities increased $487.1 million, or 1.6%, from the linked quarter, primarily driven by an increase of $1.6 billion in interest-bearing deposits, partially offset by a decrease of $1.1 billion in borrowed funds driven by the repayment of borrowings under the Bank Term Funding Program (BTFP) and Federal Home Loan Bank (FHLB) advances. Average noninterest-bearing demand deposits increased $1.1 billion, or 12.0%, as compared to the linked quarter.
• Net interest margin for the fourth quarter was 2.57%, an increase of 11 basis points from the linked quarter, driven by the decreased cost of interest-bearing liabilities due to lower short-term interest rates and a favorable mix shift in the funding composition, partially offset by decreased loan yields and earning asset mix changes. The cost of interest-bearing liabilities decreased 39 basis points sequentially to 3.79%. Total cost of funds decreased 36 basis points from the linked quarter to 2.80%. Average loan yields decreased 33 basis points while earning asset yields decreased 23 basis points from the linked quarter.
• On a year-over-year basis, net interest income increased $38.5 million, or 16.7%, driven by a $4.3 billion, or 11.3%, increase in average earning assets, partially offset by higher interest costs due to higher short-term interest rates and unfavorable mix shift in the composition of liabilities.
• Compared to the fourth quarter of 2023, average earning assets increased $4.3 billion, or 11.3%, largely driven by the increase in average loans noted above, an increase of $1.2 billion in interest-bearing due from banks, and an increase of $743.3 million in average securities.
• Average deposits increased 16.3% compared to the fourth quarter of 2023. Average interest-bearing deposits increased 21.4% and noninterest-bearing demand deposit balances increased 5.1% compared to the fourth quarter of 2023. Average demand deposit balances comprised 28.0% of total deposits, compared to 26.9% in the linked quarter and 31.0% in the fourth quarter of 2023.
• Average borrowed funds decreased $1.1 billion as compared to the linked quarter and $1.9 billion as compared to the fourth quarter of 2023, driven by the repayment of borrowings under the BTFP and FHLB advances.

Noninterest income

• Fourth quarter 2024 noninterest income increased $6.5 million, or 4.1%, on a linked-quarter basis, largely due to:
  • A gain of $4.1 million related to the previously announced sale of UMB Distribution Services during the fourth quarter of 2024 recorded in other income.
  • An increase of $2.9 million in brokerage income primarily driven by higher 12b-1 fees and money market income.
  • An increase of $2.6 million in trust and securities processing driven by strong activity in the corporate trust, private wealth, funds services and investor solutions lines of business.
  • An increase of $1.7 million in derivative income, recorded in other income.
• These increases were partially offset by the following decreases:
  • A decrease of $2.0 million in investment securities gains, primarily driven by decreased valuations in the company's non-marketable securities.
  • A decrease of $2.0 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.
• Compared to the prior year, noninterest income in the fourth quarter of 2024 increased $25.0 million, or 17.8%, primarily driven by:
  • An increase of $5.2 million in brokerage income primarily driven by higher 12b-1 fees and money market income.
  • Increases of $4.8 million in fund services income, $3.5 million in corporate trust income, and $2.0 million in trust income, all recorded in trust and securities processing.
  • A gain of $4.1 million related to the sale of UMB Distribution Services and a gain of $1.0 million on the sale of art during the fourth quarter of 2024, both recorded in other income.
  • An increase of $2.4 million in bankcard income, primarily due to increased card purchase volume and related interchange income.
  • An increase of $1.2 million in derivative income, recorded in other income.

Noninterest expense

Summary of noninterest expense		UMB Financial Corporation
(unaudited, dollars in thousands)
		Q4			Q3			Q4				CQ vs.				CQ vs.
		2024			2024			2023				LQ				PY
Salaries and employee benefits		$	161,062		$	146,984		$	134,231			$	14,078			$	26,831
Occupancy, net			11,272			12,274			12,296				(1,002	)			(1,024	)
Equipment			15,312			15,988			16,579				(676	)			(1,267	)
Supplies and services			3,173			4,967			5,546				(1,794	)			(2,373	)
Marketing and business development			8,999			6,817			6,659				2,182				2,340
Processing fees			30,565			29,697			27,271				868				3,294
Legal and consulting			12,229			9,518			8,424				2,711				3,805
Bankcard			9,398			12,482			8,677				(3,084	)			721
Amortization of other intangible assets			1,917			1,917			2,048				—				(131	)
Regulatory fees			5,255			4,686			59,183				569				(53,928	)
Other			11,179			7,124			9,060				4,055				2,119
Total noninterest expense		$	270,361		$	252,454		$	289,974			$	17,907			$	(19,613	)

• GAAP noninterest expense for the fourth quarter of 2024 was $270.4 million, an increase of $17.9 million, or 7.1%, from the linked quarter and a decrease of $19.6 million, or 6.8% from the fourth quarter of 2023. Operating noninterest expense, a non-GAAP financial measure reconciled later in this release to noninterest expense, the nearest comparable GAAP measure, was $267.3 million for the fourth quarter of 2024, an increase of $15.8 million, or 6.3%, from the linked quarter and an increase of $31.4 million, or 13.3%, from the fourth quarter of 2023.
• The linked-quarter increase in GAAP noninterest expense was driven by:
  • An increase of $15.4 million in salaries and bonus expense, recorded in salaries and employee benefits, primarily driven by increased bonuses due to improved company performance.
  • An increase of $4.5 million in operational losses, recorded in other expense.
  • An increase of $2.7 million in legal and consulting expense driven by expense related to the announced acquisition of Heartland Financial USA, Inc. and an increase of $2.2 million in marketing and business development due to the timing of multiple advertising campaigns and increased travel and entertainment expense.
  • These increases were partially offset by the following decreases:
    • A decrease of $3.1 million in bankcard expense driven by lower administrative expense.
    • 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.
    • A decrease of $1.8 million in supplies driven by purchases of computers during the third quarter of 2024.
• The year-over-year decrease in GAAP noninterest expense was driven by:
  • A decrease of $53.9 million in regulatory fees expense driven by the $52.8 million expense recorded in the fourth quarter of 2023 related to the industry-wide FDIC special assessment levied as a result of the 2023 bank failures.
  • A decrease of $2.4 million in supplies driven by purchases of computers during the fourth quarter of 2023.
  • These decreases were partially offset by the following increases:
    • An increase of $26.8 million in salaries and employee benefits, primarily driven by increased bonuses due to improved company performance.
    • An increase of $3.8 million in legal and consulting driven by expense related to the announced acquisition of Heartland Financial USA, Inc.
    • Increases of $3.3 million in processing fees expense due to increased software subscription costs and $2.3 million in marketing and business development due to the timing of multiple campaigns and increased travel and entertainment expense.

Full Year 2024 earnings discussion

Net income for the year ended December 31, 2024, was $441.2 million, or $8.99 per diluted share, compared to $350.0 million, or $7.18 per diluted share in 2023. The results for 2024 include $6.6 million in pre-tax expense for the FDIC special assessment, compared to $52.8 million in pre-tax expense in 2023. Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $461.7 million, or $9.41 per diluted share, compared to $397.1 million, or $8.14 per diluted share in 2023. These results represent an increase of $64.6 million, or 16.3% as compared to 2023. Operating PTPP, a non-GAAP financial measure reconciled later in this release to the components of net income before taxes, the nearest comparable GAAP measure, was $625.8 million, or $12.75 per diluted share, compared to $524.8 million, or $10.76 per diluted share in 2023. These results represent an increase of 19.2% as compared to 2023.

Summary of year-to-date financial results		UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)		December				December
		YTD				YTD
		2024				2023
Net income (GAAP)		$	441,243			$	350,024
Earnings per share - diluted (GAAP)			8.99				7.18
Operating pre-tax, pre-provision income (Non-GAAP)(i)			625,786				524,791
Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)(i)			12.75				10.76
Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i)			651,679				551,150
Operating pre-tax, pre-provision earnings per share - FTE - diluted (Non-GAAP)(i)			13.28				11.30
Net operating income (Non-GAAP)(i)			461,745				397,115
Operating earnings per share - diluted (Non-GAAP)(i)			9.41				8.14
GAAP
Return on average assets			1.02	%			0.88	%
Return on average equity			13.24				12.23
Efficiency ratio			62.56				67.76
Non-GAAP(i)
Operating return on average assets			1.07	%			1.00	%
Operating return on average equity			13.85				13.87
Operating efficiency ratio			61.12				63.52

• Net interest income increased $80.8 million, or 8.8% year-over-year due to a $3.3 billion, or 8.9%, increase in average earning assets, coupled with the impacts from increased short-term and long-term interest rates in 2024 as compared to 2023. The increase in earning assets was driven by an increase of $1.9 billion, or 8.4%, in average loans, and an increase of $1.4 billion, or 70.2%, in average interest-bearing due from banks as compared to 2023. Average interest-bearing liabilities increased $3.4 billion, or 13.3%, while noninterest-bearing demand deposits decreased $563.1 million, or 5.3%, as expected in a higher interest rate environment. The yield on earning assets increased 41 basis points, while the cost of interest-bearing liabilities increased 44 basis points. Net interest margin for 2024 was 2.51%, compared to 2.52% in 2023.
• Full-year noninterest income increased $86.3 million, or 15.9%, due to:
  • Increases of $20.5 million in fund services income, $7.7 million in corporate trust income, and $5.1 million in trust income, all recorded in trust and securities processing.
  • An increase of $14.1 million in other income, primarily driven by gains on the sale of UMB Distribution Services, art, and land, as well as the recognition of $4.0 million from a legal settlement, all recorded during 2024.
  • An increase of $13.9 million in investment securities gains, primarily driven by increased valuations in the company's non-marketable securities in 2024, coupled with the $4.9 million impairment loss on an available-for-sale subordinated debt security recorded in the prior year.
  • Increases of $13.1 million in bankcard income due to higher interchange revenue, $7.4 million in brokerage income, due to higher 12b-1 fees and money market income, and $4.6 million in investment banking due to increased trade volume.
• Full-year GAAP noninterest expense increased $27.5 million, or 2.8% due to:
  • An increase of $40.5 million in salaries and employee benefits, driven by increases of $36.4 million in salaries and bonus expense and $4.1 million in employee benefits expense.
  • An increase of $16.2 million in legal and consulting expense driven by expense related to the announced acquisition of Heartland Financial USA, Inc.
  • Increases of $14.8 million in processing fees, driven by increased software subscription costs, and $11.3 million in bankcard expense driven by higher administrative expense.
  • These increases were partially offset by the following decreases:
    • A decrease of $45.1 million in regulatory fees driven by the reduced FDIC special assessment expense during 2024 as compared to 2023. The results for 2024 and 2023 include expense of $6.6 million and $52.8 million, respectively, for the industry-wide FDIC special assessment.
    • Decreases of $5.3 million in equipment expense, driven by reduced software expense, and $3.7 million in other expense, primarily due to fewer operational losses and decreased charitable contributions in 2024 as compared to 2023.

Income taxes

• The company’s effective tax rate was 18.5% for the year ended December 31, 2024, compared to 17.0% for the same period in 2023. The increase in the effective tax rate in 2024 is primarily attributable to a smaller portion of income being earned from tax-exempt municipal securities and higher non-deductible acquisition costs in 2024. These increases were partially offset by an increase in federal tax credits, net of related amortization.

Balance sheet

• Average total assets for the fourth quarter of 2024 were $45.0 billion compared to $43.3 billion for the linked quarter and $40.5 billion for the same period in 2023.

Summary of average loans and leases - QTD Average								UMB Financial Corporation
(unaudited, dollars in thousands)
		Q4			Q3			Q4			CQ vs.				CQ vs.
		2024			2024			2023			LQ				PY
Commercial and industrial		$	10,637,952		$	10,176,502		$	9,825,043		$	461,450			$	812,909
Specialty lending			491,546			508,957			496,816			(17,411	)			(5,270	)
Commercial real estate			10,007,361			9,669,076			8,890,057			338,285				1,117,304
Consumer real estate			3,143,613			3,045,229			2,945,114			98,384				198,499
Consumer			177,341			164,105			153,791			13,236				23,550
Credit cards			630,373			613,663			495,502			16,710				134,871
Leases and other			201,602			209,631			302,740			(8,029	)			(101,138	)
Total loans		$	25,289,788		$	24,387,163		$	23,109,063		$	902,625			$	2,180,725

• Average loans for the fourth quarter of 2024 increased $902.6 million, or 3.7%, on a linked-quarter basis and $2.2 billion, or 9.4%, compared to the fourth quarter of 2023.

Summary of average securities - QTD Average		UMB Financial Corporation
(unaudited, dollars in thousands)
		Q4			Q3			Q4			CQ vs.				CQ vs.
		2024			2024			2023			LQ				PY
Securities available for sale:
U.S. Treasury		$	1,131,295		$	821,308		$	859,114		$	309,987			$	272,181
U.S. Agencies			159,808			166,250			169,723			(6,442	)			(9,915	)
Mortgage-backed			4,200,465			3,888,879			3,466,152			311,586				734,313
State and political subdivisions			1,241,033			1,240,199			1,218,176			834				22,857
Corporates			321,939			320,570			345,634			1,369				(23,695	)
Collateralized loan obligations			359,053			340,604			349,149			18,449				9,904
Total securities available for sale		$	7,413,593		$	6,777,810		$	6,407,948		$	635,783			$	1,005,645
Securities held to maturity:
U.S. Agencies		$	116,316		$	116,286		$	123,195		$	30			$	(6,879	)
Mortgage-backed			2,542,385			2,597,430			2,756,528			(55,045	)			(214,143	)
State and political subdivisions			2,765,663			2,785,138			2,825,138			(19,475	)			(59,475	)
Total securities held to maturity		$	5,424,364		$	5,498,854		$	5,704,861		$	(74,490	)		$	(280,497	)
Trading securities		$	25,224		$	19,743		$	16,880		$	5,481			$	8,344
Other securities			466,545			447,698			456,758			18,847				9,787
Total securities		$	13,329,726		$	12,744,105		$	12,586,447		$	585,621			$	743,279

• Average total securities increased 4.6% on a linked-quarter basis and increased 5.9% compared to the fourth quarter of 2023.
• At December 31, 2024, the unrealized pre-tax net loss on the available-for-sale securities portfolio was $633.3 million, or 7.5% of the $8.4 billion amortized cost balance. At December 31, 2024, the unrealized pre-tax net loss on the securities designated as held to maturity was $630.0 million, or 11.7% of the $5.4 billion amortized cost value.

Summary of average deposits - QTD Average						UMB Financial Corporation
(unaudited, dollars in thousands)
		Q4				Q3				Q4				CQ vs.				CQ vs.
		2024				2024				2023				LQ				PY
Deposits:
Noninterest-bearing demand		$	10,637,616			$	9,502,106			$	10,118,748			$	1,135,510			$	518,868
Interest-bearing demand and savings			25,367,316				23,779,651				19,457,878				1,587,665				5,909,438
Time deposits			2,012,287				2,010,199				3,098,636				2,088				(1,086,349	)
Total deposits		$	38,017,219			$	35,291,956			$	32,675,262			$	2,725,263			$	5,341,957
Noninterest bearing deposits as % of total			28.0	%			26.9	%			31.0	%

• Average deposits increased 7.7% on a linked-quarter basis and 16.3% compared to the fourth quarter of 2023.

Capital

Capital information		UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
		December 31, 2024				September 30, 2024				December 31, 2023
Total equity		$	3,466,541			$	3,535,489			$	3,100,419
Accumulated other comprehensive loss, net			(573,050	)			(395,856	)			(556,935	)
Book value per common share			71.02				72.45				63.85
Tangible book value per common share (Non-GAAP)(i)			65.46				66.86				58.12
Regulatory capital:
Common equity Tier 1 capital		$	3,802,257			$	3,691,874			$	3,418,676
Tier 1 capital			3,802,257				3,691,874				3,418,676
Total capital			4,445,872				4,324,890				4,014,910
Regulatory capital ratios:
Common equity Tier 1 capital ratio			11.29	%			11.22	%			10.94	%
Tier 1 risk-based capital ratio			11.29				11.22				10.94
Total risk-based capital ratio			13.21				13.14				12.85
Tier 1 leverage ratio			8.50				8.58				8.49

(i) See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.

• At December 31, 2024, 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
		2024				2024				2024				2024				2023
Net charge-offs - total loans		$	8,935			$	8,454			$	2,856			$	3,017			$	1,352
Net loan charge-offs as a % of total average loans			0.14	%			0.14	%			0.05	%			0.05	%			0.02	%
Loans over 90 days past due		$	7,602			$	7,133			$	5,644			$	3,076			$	3,111
Loans over 90 days past due as a % of total loans			0.03	%			0.03	%			0.02	%			0.01	%			0.01	%
Nonaccrual and restructured loans		$	19,282			$	19,291			$	13,743			$	17,756			$	13,212
Nonaccrual and restructured loans as a % of total loans			0.08	%			0.08	%			0.06	%			0.08	%			0.06	%
Provision for credit losses		$	19,000			$	18,000			$	14,050			$	10,000			$	—

• Provision for credit losses for the fourth quarter increased $1.0 million from the linked quarter and $19.0 million from the fourth quarter of 2023. These changes are driven largely by provision tied to the $651.5 million and $2.5 billion increases, respectively, in period-end loans from the prior periods, as well as general portfolio trends in the current period as compared to the prior periods.
• Net charge-offs for the fourth quarter totaled $8.9 million, or 0.14% of average loans, compared to $8.5 million, or 0.14% of average loans in the linked quarter, and $1.4 million, or 0.02% of average loans for the fourth quarter of 2023.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors declared a $0.40 per share quarterly cash dividend, payable on April 1, 2025, to stockholders of record of the company's common stock at the close of business on March 10, 2025.

Conference Call

The company will host a conference call to discuss its fourth quarter 2024 earnings results on Wednesday, January 29, 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 099512. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 4Q 2024 Conference Call

A replay of the conference call may be heard through February 12, 2025, by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 612758. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial Information

In this release, we provide information about net operating income, operating earnings per share – diluted (operating EPS), operating return on average equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, operating efficiency ratio, 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- and severance-related items, and the FDIC special assessment that management does not believe reflect the company’s fundamental operating performance.

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, 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, 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 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 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, 2023, 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 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
(unaudited, dollars in thousands)
		December 31,
		2024				2023
ASSETS
Loans		$	25,642,301			$	23,172,484
Allowance for credit losses on loans			(259,089	)			(219,738	)
Net loans			25,383,212				22,952,746
Loans held for sale			2,756				4,420
Securities:
Available for sale			7,774,334				7,068,613
Held to maturity, net of allowance for credit losses			5,376,267				5,688,610
Trading securities			28,533				18,093
Other securities			471,018				492,935
Total securities			13,650,152				13,268,251
Federal funds sold and resell agreements			545,000				245,344
Interest-bearing due from banks			7,986,270				5,159,802
Cash and due from banks			573,175				447,201
Premises and equipment, net			221,773				241,700
Accrued income			246,095				220,306
Goodwill			207,385				207,385
Other intangibles, net			63,647				71,012
Other assets			1,530,199				1,193,507
Total assets		$	50,409,664			$	44,011,674
LIABILITIES
Deposits:
Noninterest-bearing demand		$	13,617,167			$	12,130,662
Interest-bearing demand and savings			27,397,195				20,588,606
Time deposits under $250,000			969,132				2,292,899
Time deposits of $250,000 or more			1,158,535				780,692
Total deposits			43,142,029				35,792,859
Federal funds purchased and repurchase agreements			2,609,715				2,119,644
Short-term debt			—				1,800,000
Long-term debt			385,292				383,247
Accrued expenses and taxes			368,457				389,860
Other liabilities			437,630				425,645
Total liabilities			46,943,123				40,911,255
SHAREHOLDERS' EQUITY
Common stock			55,057				55,057
Capital surplus			1,145,638				1,134,363
Retained earnings			3,174,948				2,810,824
Accumulated other comprehensive loss, net			(573,050	)			(556,935	)
Treasury stock			(336,052	)			(342,890	)
Total shareholders' equity			3,466,541				3,100,419
Total liabilities and shareholders' equity		$	50,409,664			$	44,011,674

Consolidated Statements of Income		UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2024				2023				2024				2023
INTEREST INCOME
Loans		$	410,631			$	381,041			$	1,612,948			$	1,399,961
Securities:
Taxable interest			71,403				53,890				257,562				214,981
Tax-exempt interest			24,387				25,637				99,375				102,197
Total securities income			95,790				79,527				356,937				317,178
Federal funds and resell agreements			5,902				3,540				17,628				17,647
Interest-bearing due from banks			42,314				32,267				182,145				103,190
Trading securities			331				227				1,351				729
Total interest income			554,968				496,602				2,171,009				1,838,705
INTEREST EXPENSE
Deposits			255,303				213,842				982,302				704,210
Federal funds and repurchase agreements			23,745				21,903				106,558				93,026
Other			6,946				30,335				81,257				121,353
Total interest expense			285,994				266,080				1,170,117				918,589
Net interest income			268,974				230,522				1,000,892				920,116
Provision for credit losses			19,000				—				61,050				41,227
Net interest income after provision for credit losses			249,974				230,522				939,842				878,889
NONINTEREST INCOME
Trust and securities processing			76,861				66,584				290,571				257,200
Trading and investment banking			6,185				5,751				24,226				19,630
Service charges on deposit accounts			21,405				21,330				84,512				84,950
Insurance fees and commissions			425				238				1,257				1,009
Brokerage fees			18,635				13,439				61,564				54,119
Bankcard fees			21,089				18,672				87,797				74,719
Investment securities gains (losses), net			593				1,014				10,720				(3,139	)
Other			20,018				13,226				67,470				53,365
Total noninterest income			165,211				140,254				628,117				541,853
NONINTEREST EXPENSE
Salaries and employee benefits			161,062				134,231				593,913				553,421
Occupancy, net			11,272				12,296				47,539				48,502
Equipment			15,312				16,579				63,406				68,718
Supplies and services			3,173				5,546				14,845				16,829
Marketing and business development			8,999				6,659				28,439				25,749
Processing fees			30,565				27,271				117,899				103,099
Legal and consulting			12,229				8,424				46,207				29,998
Bankcard			9,398				8,677				44,265				32,969
Amortization of other intangible assets			1,917				2,048				7,705				8,587
Regulatory fees			5,255				59,183				31,904				77,010
Other			11,179				9,060				30,564				34,258
Total noninterest expense			270,361				289,974				1,026,686				999,140
Income before income taxes			144,824				80,802				541,273				421,602
Income tax expense			24,827				9,879				100,030				71,578
NET INCOME		$	119,997			$	70,923			$	441,243			$	350,024
PER SHARE DATA
Net income – basic		$	2.46			$	1.46			$	9.05			$	7.22
Net income – diluted			2.44				1.45				8.99				7.18
Dividends			0.40				0.39				1.57				1.53
Weighted average shares outstanding – basic			48,807,081				48,538,127				48,747,814				48,503,643
Weighted average shares outstanding – diluted			49,178,891				48,860,020				49,056,956				48,763,820

Consolidated Statements of Comprehensive Income		UMB Financial Corporation
(unaudited, dollars in thousands)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2024				2023				2024				2023
Net income		$	119,997			$	70,923			$	441,243			$	350,024
Other comprehensive (loss) income, before tax:
Unrealized gains and losses on debt securities:
Change in unrealized holding gains and losses, net			(183,961	)			293,578				(8,956	)			147,977
Less: Reclassification adjustment for net (gains) losses included in net income			—				—				(139	)			279
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity			8,560				9,288				35,905				39,851
Change in unrealized gains and losses on debt securities			(175,401	)			302,866				26,810				188,107
Unrealized gains and losses on derivative hedges:
Change in unrealized gains and losses on derivative hedges, net			(58,542	)			10,767				(40,530	)			15,015
Less: Reclassification adjustment for net gains included in net income			(677	)			(2,589	)			(8,069	)			(10,654	)
Change in unrealized gains and losses on derivative hedges			(59,219	)			8,178				(48,599	)			4,361
Other comprehensive (loss) income, before tax			(234,620	)			311,044				(21,789	)			192,468
Income tax benefit (expense)			57,426				(75,608	)			5,674				(46,668	)
Other comprehensive (loss) income			(177,194	)			235,436				(16,115	)			145,800
Comprehensive (loss) income		$	(57,197	)		$	306,359			$	425,128			$	495,824

Consolidated Statements of Shareholders' Equity					UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
		Common Stock			Capital Surplus				Retained Earnings				Accumulated Other Comprehensive (Loss) Income				Treasury Stock				Total
Balance - January 1, 2023		$	55,057		$	1,125,949			$	2,536,086			$	(702,735	)		$	(347,264	)		$	2,667,093
Total comprehensive income			—			—				350,024				145,800				—				495,824
Dividends ($1.53 per share)			—			—				(75,286	)			—				—				(75,286	)
Purchase of treasury stock			—			—				—				—				(8,367	)			(8,367	)
Issuances of equity awards, net of forfeitures			—			(10,385	)			—				—				11,104				719
Recognition of equity-based compensation			—			17,975				—				—				—				17,975
Sale of treasury stock			—			220				—				—				296				516
Exercise of stock options			—			604				—				—				1,341				1,945
Balance - December 31, 2023		$	55,057		$	1,134,363			$	2,810,824			$	(556,935	)		$	(342,890	)		$	3,100,419
Balance - January 1, 2024		$	55,057		$	1,134,363			$	2,810,824			$	(556,935	)		$	(342,890	)		$	3,100,419
Total comprehensive income (loss)			—			—				441,243				(16,115	)			—				425,128
Dividends ($1.57 per share)			—			—				(77,119	)			—				—				(77,119	)
Purchase of treasury stock			—			—				—				—				(7,738	)			(7,738	)
Issuances of equity awards, net of forfeitures			—			(11,220	)			—				—				11,923				703
Recognition of equity-based compensation			—			21,876				—				—				—				21,876
Sale of treasury stock			—			342				—				—				240				582
Exercise of stock options			—			1,690				—				—				2,413				4,103
Common stock issuance costs			—			(1,413	)			—				—				—				(1,413	)
Balance - December 31, 2024		$	55,057		$	1,145,638			$	3,174,948			$	(573,050	)		$	(336,052	)		$	3,466,541

Average Balances / Yields and Rates		UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
		Three Months Ended December 31,
		2024								2023
		Average				Average				Average				Average
		Balance				Yield/Rate				Balance				Yield/Rate
Assets
Loans, net of unearned interest		$	25,289,788				6.46	%		$	23,109,063				6.54	%
Securities:
Taxable			9,739,156				2.92				8,853,426				2.41
Tax-exempt			3,565,346				3.42				3,716,141				3.44
Total securities			13,304,502				3.05				12,569,567				2.72
Federal funds and resell agreements			429,898				5.46				235,284				5.97
Interest bearing due from banks			3,573,884				4.71				2,372,767				5.40
Trading securities			25,224				5.68				16,880				5.83
Total earning assets			42,623,296				5.24				38,303,561				5.21
Allowance for credit losses			(250,824	)							(223,668	)
Other assets			2,608,524								2,435,687
Total assets		$	44,980,996							$	40,515,580
Liabilities and Shareholders' Equity
Interest-bearing deposits		$	27,379,603				3.71	%		$	22,556,514				3.76	%
Federal funds and repurchase agreements			2,250,507				4.20				1,883,392				4.61
Borrowed funds			409,474				6.75				2,286,271				5.26
Total interest-bearing liabilities			30,039,584				3.79				26,726,177				3.95
Noninterest-bearing demand deposits			10,637,616								10,118,748
Other liabilities			776,031								715,688
Shareholders' equity			3,527,765								2,954,967
Total liabilities and shareholders' equity		$	44,980,996							$	40,515,580
Net interest spread							1.45	%							1.26	%
Net interest margin							2.57								2.46

Average Balances / Yields and Rates		UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
		Year Ended December 31,
		2024								2023
		Average				Average				Average				Average
		Balance				Yield/Rate				Balance				Yield/Rate
Assets
Loans, net of unearned interest		$	24,212,645				6.66	%		$	22,337,119				6.27	%
Securities:
Taxable			9,290,809				2.77				9,097,110				2.36
Tax-exempt			3,634,588				3.44				3,790,921				3.38
Total securities			12,925,397				2.96				12,888,031				2.66
Federal funds and resell agreements			303,096				5.82				316,072				5.58
Interest bearing due from banks			3,482,402				5.23				2,046,349				5.04
Trading securities			22,311				6.53				14,030				5.65
Total earning assets			40,945,851				5.37				37,601,601				4.96
Allowance for credit losses			(235,370	)							(216,245	)
Other assets			2,479,363								2,344,911
Total assets		$	43,189,844							$	39,730,267
Liabilities and Shareholders' Equity
Interest-bearing deposits		$	25,224,201				3.89	%		$	21,122,305				3.33	%
Federal funds and repurchase agreements			2,338,455				4.56				2,175,415				4.28
Borrowed funds			1,447,646				5.61				2,311,238				5.25
Total interest-bearing liabilities			29,010,302				4.03				25,608,958				3.59
Noninterest-bearing demand deposits			10,077,251								10,640,344
Other liabilities			769,479								618,230
Shareholders' equity			3,332,812								2,862,735
Total liabilities and shareholders' equity		$	43,189,844							$	39,730,267
Net interest spread							1.34	%							1.37	%
Net interest margin							2.51								2.52

Business Segment Information		UMB Financial Corporation
(unaudited, dollars in thousands)
		Three Months Ended December 31, 2024
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	180,085			$	53,118			$	35,771			$	268,974
Provision for credit losses			15,392				1,021				2,587				19,000
Noninterest income			29,278				109,812				26,121				165,211
Noninterest expense			92,740				109,850				67,771				270,361
Income (loss) before taxes			101,231				52,059				(8,466	)			144,824
Income tax expense (benefit)			17,764				8,246				(1,183	)			24,827
Net income (loss)		$	83,467			$	43,813			$	(7,283	)		$	119,997
		Three Months Ended December 31, 2023
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	154,289			$	44,150			$	32,083			$	230,522
Provision for credit losses			(1,926	)			653				1,273				—
Noninterest income			25,956				90,361				23,937				140,254
Noninterest expense			114,190				114,306				61,478				289,974
Income (loss) before taxes			67,981				19,552				(6,731	)			80,802
Income tax expense (benefit)			5,198				2,867				1,814				9,879
Net income (loss)		$	62,783			$	16,685			$	(8,545	)		$	70,923
		Year Ended December 31, 2024
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	665,587			$	199,821			$	135,484			$	1,000,892
Provision for credit losses			50,155				2,781				8,114				61,050
Noninterest income			130,187				398,306				99,624				628,117
Noninterest expense			356,136				408,323				262,227				1,026,686
Income (loss) before taxes			389,483				187,023				(35,233	)			541,273
Income tax expense (benefit)			71,248				33,126				(4,344	)			100,030
Net income (loss)		$	318,235			$	153,897			$	(30,889	)		$	441,243
		Year Ended December 31, 2023
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	598,371			$	192,765			$	128,980			$	920,116
Provision for credit losses			33,184				1,406				6,637				41,227
Noninterest income			97,614				347,933				96,306				541,853
Noninterest expense			365,856				382,770				250,514				999,140
Income (loss) before taxes			296,945				156,522				(31,865	)			421,602
Income tax expense (benefit)			47,874				26,664				(2,960	)			71,578
Net income (loss)		$	249,071			$	129,858			$	(28,905	)		$	350,024

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, 2024.

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,
		2024				2023				2024				2023
Net income (GAAP)		$	119,997			$	70,923			$	441,243			$	350,024
Adjustments:
Acquisition expense			3,658				52				16,250				179
Severance expense			245				1,207				569				8,943
FDIC special assessment			(826	)			52,840				6,644				52,840
Tax-impact of adjustments (i)			(497	)			(12,984	)			(2,961	)			(14,871	)
Total Non-GAAP adjustments (net of tax)			2,580				41,115				20,502				47,091
Net operating income (Non-GAAP)		$	122,577			$	112,038			$	461,745			$	397,115
Earnings per share - diluted (GAAP)		$	2.44			$	1.45			$	8.99			$	7.18
Acquisition expense			0.07				—				0.33				—
Severance expense			—				0.02				0.01				0.18
FDIC special assessment			(0.01	)			1.08				0.14				1.08
Tax-impact of adjustments (i)			(0.01	)			(0.26	)			(0.06	)			(0.30	)
Operating earnings per share - diluted (Non-GAAP)		$	2.49			$	2.29			$	9.41			$	8.14
GAAP
Return on average assets			1.06	%			0.69	%			1.02	%			0.88		%
Return on average equity			13.53				9.52				13.24				12.23
Non-GAAP
Operating return on average assets			1.08	%			1.10	%			1.07	%			1.00		%
Operating return on average equity			13.82				15.04				13.85				13.87

(i) Calculated using the company’s marginal tax rate of 23.0% for 2024 and 24.0% for 2023. 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 December 31,								Year Ended December 31,
		2024				2023				2024				2023
Noninterest expense		$	270,361			$	289,974			$	1,026,686			$	999,140
Adjustments to arrive at operating noninterest expense (pre-tax):
Acquisition expense			3,658				52				16,250				179
Severance expense			245				1,207				569				8,943
FDIC special assessment			(826	)			52,840				6,644				52,840
Total Non-GAAP adjustments (pre-tax)			3,077				54,099				23,463				61,962
Operating noninterest expense (Non-GAAP)		$	267,284			$	235,875			$	1,003,223			$	937,178
Noninterest expense		$	270,361			$	289,974			$	1,026,686			$	999,140
Less: Amortization of other intangibles			1,917				2,048				7,705				8,587
Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A)		$	268,444			$	287,926			$	1,018,981			$	990,553
Operating noninterest expense		$	267,284			$	235,875			$	1,003,223			$	937,178
Less: Amortization of other intangibles			1,917				2,048				7,705				8,587
Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B)		$	265,367			$	233,827			$	995,518			$	928,591
Net interest income		$	268,974			$	230,522			$	1,000,892			$	920,116
Noninterest income			165,211				140,254				628,117				541,853
Less: Gains on sales of securities available for sale, net			—				—				139				152
Total Non-GAAP Revenue (denominator A)		$	434,185			$	370,776			$	1,628,870			$	1,461,817
Efficiency ratio (numerator A/denominator A)			61.83	%			77.65	%			62.56	%			67.76	%
Operating efficiency ratio (Non-GAAP) (numerator B/denominator A)			61.12				63.06				61.12				63.52

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,
		2024				2023				2024				2023
Net interest income (GAAP)		$	268,974			$	230,522			$	1,000,892			$	920,116
Noninterest income (GAAP)			165,211				140,254				628,117				541,853
Noninterest expense (GAAP)			270,361				289,974				1,026,686				999,140
Adjustments to arrive at operating noninterest expense:
Acquisition expense			3,658				52				16,250				179
Severance expense			245				1,207				569				8,943
FDIC special assessment			(826	)			52,840				6,644				52,840
Total Non-GAAP adjustments			3,077				54,099				23,463				61,962
Operating noninterest expense (Non-GAAP)			267,284				235,875				1,003,223				937,178
Operating pre-tax, pre-provision income (Non-GAAP)		$	166,901			$	134,901			$	625,786			$	524,791
Net interest income earnings per share - diluted (GAAP)		$	5.47			$	4.72			$	20.40			$	18.87
Noninterest income (GAAP)			3.36				2.87				12.80				11.11
Noninterest expense (GAAP)			5.50				5.93				20.93				20.48
Acquisition expense			0.07				—				0.33				—
Severance expense			—				0.02				0.01				0.18
FDIC special assessment			(0.01	)			1.08				0.14				1.08
Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)		$	3.39			$	2.76			$	12.75			$	10.76

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,
		2024				2023				2024				2023
Net interest income (GAAP)		$	268,974			$	230,522			$	1,000,892			$	920,116
Adjustments to arrive at net interest income - FTE:
Tax equivalent interest			6,369				6,670				25,893				26,359
Net interest income - FTE (Non-GAAP)			275,343				237,192				1,026,785				946,475
Noninterest income (GAAP)			165,211				140,254				628,117				541,853
Noninterest expense (GAAP)			270,361				289,974				1,026,686				999,140
Adjustments to arrive at operating noninterest expense:
Acquisition expense			3,658				52				16,250				179
Severance expense			245				1,207				569				8,943
FDIC special assessment			(826	)			52,840				6,644				52,840
Total Non-GAAP adjustments			3,077				54,099				23,463				61,962
Operating noninterest expense (Non-GAAP)			267,284				235,875				1,003,223				937,178
Operating pre-tax, pre-provision income - FTE (Non-GAAP)		$	173,270			$	141,571			$	651,679			$	551,150
Net interest income earnings per share - diluted (GAAP)		$	5.47			$	4.72			$	20.40			$	18.87
Tax equivalent interest			0.13				0.14				0.53				0.54
Net interest income - FTE (Non-GAAP)			5.60				4.86				20.93				19.41
Noninterest income (GAAP)			3.36				2.87				12.80				11.11
Noninterest expense (GAAP)			5.50				5.93				20.93				20.48
Acquisition expense			0.07				—				0.33				—
Severance expense			—				0.02				0.01				0.18
FDIC special assessment			(0.01	)			1.08				0.14				1.08
Operating pre-tax, pre-provision income - FTE earnings per share - diluted (Non-GAAP)		$	3.52			$	2.90			$	13.28			$	11.30

Tangible book value non-GAAP reconciliations:		UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
		As of December 31,
		2024				2023
Total shareholders' equity (GAAP)		$	3,466,541			$	3,100,419
Less: Intangible assets
Goodwill			207,385				207,385
Other intangibles, net			63,647				71,012
Total intangibles, net			271,032				278,397
Total tangible shareholders' equity (Non-GAAP)		$	3,195,509			$	2,822,022
Total shares outstanding			48,814,177				48,554,127
Ratio of total shareholders' equity (book value) per share		$	71.02			$	63.85
Ratio of total tangible shareholders' equity (tangible book value) per share (Non-GAAP)			65.46				58.12

 

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Media Contact: Stephanie Hague: 816.729.1027

Investor Relations Contact: Kay Gregory: 816.860.7106

Source: UMB Financial Corporation

FAQ

What was UMB Financial's (UMBF) Q4 2024 earnings per share?

UMBF reported earnings of $2.44 per diluted share in Q4 2024, with operating earnings of $2.49 per diluted share.

How much did UMBF's average loans grow in Q4 2024?

Average loans increased 14.8% on a linked-quarter annualized basis to $25.3 billion in Q4 2024.

What was UMBF's net interest margin in Q4 2024?

UMBF's net interest margin was 2.57% in Q4 2024, an increase of 11 basis points from the previous quarter.

When will UMBF's merger with Heartland Financial close?

The merger with Heartland Financial is scheduled to close on January 31, 2025.

What was UMBF's full-year 2024 net income?

UMBF reported full-year 2024 net income of $441.2 million, with net operating income of $461.7 million.