UMB Financial Corporation Reports Third Quarter Net Income of $109.6 Million and Net Operating Income(i) of $110.4 Million.

Rhea-AI Summary

UMB Financial (UMBF) reported strong Q3 2024 financial results with net income of $109.6 million, or $2.23 per diluted share, up from $101.3 million in Q2 2024 and $96.6 million in Q3 2023. The company showed robust growth with average loans increasing 9.8% on a linked-quarter annualized basis to $24.4 billion, and average deposits growing 11.1% to $35.3 billion. Credit quality remained strong with net charge-offs of just 0.08% of average loans. The company is on track to complete its pending acquisition of Heartland Financial in Q1 2025.

Positive

• Net income increased to $109.6 million, up from $101.3 million in Q2 2024
• Average loans grew 9.8% annualized to $24.4 billion
• Average deposits increased 11.1% annualized to $35.3 billion
• Strong credit quality with low net charge-offs of 0.08%
• Fee income increased 9.5% compared to linked quarter

Negative

• Net interest margin decreased 5 basis points sequentially
• Noninterest-bearing demand deposits decreased 5.9% from linked quarter
• Total cost of funds increased 10 basis points from linked quarter to 3.16%

Insights

Financial Analyst

UMB Financial delivered strong Q3 2024 results with $109.6 million net income ($2.23 EPS), up from $101.3 million in Q2 and $96.6 million YoY. Key highlights include:

• Robust loan growth of 9.8% annualized to $24.4 billion
• Healthy deposit growth of 11.1% annualized to $35.3 billion
• Strong credit quality with minimal net charge-offs of 0.08%
• Net interest margin slightly compressed by 5bps to 2.46% due to funding mix shift

The pending Heartland Financial acquisition remains on track for Q1 2025 completion, which should add scale and diversification. Asset quality metrics and capital levels remain solid, positioning UMB well for continued growth.

Banking Industry Expert

The results demonstrate UMB's successful execution across multiple revenue streams. Fee income grew 9.5% quarter-over-quarter, driven by institutional banking strength. The 39.1% noninterest income to revenue ratio highlights UMB's well-diversified model. While NIM faced some pressure from deposit mix changes, the core commercial banking franchise shows momentum with $1.4 billion in new loan production. The efficiency ratio improved to 61.69% from 63.37% last quarter, indicating good expense management despite integration costs.

Third Quarter 2024 Financial Highlights

• GAAP net income of $109.6 million, or $2.23 per diluted share.
• Net operating income⁽ⁱ⁾ of $110.4 million, or $2.25 per diluted share.
• Average loans increased 9.8% on a linked-quarter, annualized basis, to $24.4 billion.
• Average loans increased $1.6 billion, or 7.2%, as compared to the third quarter of 2023.
• Average deposits increased 11.1% on a linked-quarter, annualized basis, to $35.3 billion.
• Credit quality remained strong, with net charge-offs of just 0.08% of average loans for the nine months ended September 30, 2024.

KANSAS CITY, Mo.--(BUSINESS WIRE)-- UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the third quarter of 2024 of $109.6 million, or $2.23 per diluted share, compared to $101.3 million, or $2.07 per diluted share, in the second quarter (linked quarter) and $96.6 million, or $1.98 per diluted share, in the third 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 $110.4 million, or $2.25 per diluted share, for the third quarter of 2024, compared to $105.9 million, or $2.16 per diluted share, for the linked quarter and $98.4 million, or $2.02 per diluted share, for the third 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 $154.6 million, or $3.15 per diluted share, for the third quarter of 2024, compared to $146.8 million, or $3.00 per diluted share, for the linked quarter, and $126.6 million, or $2.60 per diluted share, for the third quarter of 2023. These operating PTPP results represent increases of 5.3% on a linked-quarter basis and 22.1% compared to the third quarter of 2023.

“We are pleased with another quarter of solid financial performance across the board,” said Mariner Kemper, UMB Financial Corporation chairman and chief executive officer. “Strong institutional banking activity contributed to the 9.5% increase in fee income compared to the linked quarter, and near-double digit annualized loan growth drove net interest income higher. Net interest margin decreased five basis points sequentially due largely to the decline in average noninterest-bearing deposit balances driven by net client disbursements within our asset servicing and corporate trust lines of business, which can be episodic in nature. Asset quality remains strong as evidenced by only eight basis points of net charge-offs to average loans on a year-to-date basis; the higher provision expense in the quarter largely reflects the impact of $793.3 million in net loan growth that was driven by record top-line loan production of $1.4 billion.

“We are on track to complete our pending acquisition of Heartland Financial, subject to regulatory and other approvals, in the first quarter of 2025. Our preparations for legal day one of the acquisition are well underway, with many cross-functional workstreams collaborating with personnel from Heartland Financial. This financially and strategically compelling combination will add further diversity and scale to our already well-diversified financial model. We look forward to serving our prospective clients and geographies as well as welcoming new associates to our UMB family.”

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

Third Quarter 2024 earnings discussion

Summary of quarterly financial results		UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
		Q3				Q2				Q3
		2024				2024				2023
Net income (GAAP)		$	109,643			$	101,345			$	96,554
Earnings per share - diluted (GAAP)			2.23				2.07				1.98
Operating pre-tax, pre-provision income (Non-GAAP)(i)			154,594				146,840				126,592
Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)(i)			3.15				3.00				2.60
Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i)			161,195				153,247				133,151
Operating pre-tax, pre-provision earnings per share - FTE - diluted (Non-GAAP)(i)			3.28				3.13				2.73
Net operating income (Non-GAAP)(i)			110,358				105,873				98,400
Operating earnings per share - diluted (Non-GAAP)(i)			2.25				2.16				2.02
GAAP
Return on average assets			1.01	%			0.96	%			0.97	%
Return on average equity			12.63				12.73				13.25
Efficiency ratio			61.69				63.37				64.51
Non-GAAP(i)
Operating return on average assets			1.01	%			1.00	%			0.99	%
Operating return on average equity			12.71				13.30				13.50
Operating efficiency ratio			61.46				61.86				63.83

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

Summary of year-to-date financial results		UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)		September				September
		YTD				YTD
		2024				2023
Net income (GAAP)		$	321,246			$	279,101
Earnings per share - diluted (GAAP)			6.56				5.73
Operating pre-tax, pre-provision income (Non-GAAP)(i)			458,885				389,890
Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)(i)			9.37				8.00
Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i)			478,409				409,579
Operating pre-tax, pre-provision earnings per share - FTE - diluted (Non-GAAP)(i)			9.76				8.40
Net operating income (Non-GAAP)(i)			336,943				285,077
Operating earnings per share - diluted (Non-GAAP)(i)			6.88				5.85
GAAP
Return on average assets			1.01	%			0.95	%
Return on average equity			13.13				13.18
Efficiency ratio			62.82				64.40
Non-GAAP(i)
Operating return on average assets			1.06	%			0.97	%
Operating return on average equity			13.77				13.46
Operating efficiency ratio			61.12				63.68

Summary of revenue		UMB Financial Corporation
(unaudited, dollars in thousands)
		Q3				Q2				Q3				CQ vs.				CQ vs.
		2024				2024				2023				LQ				PY
Net interest income		$	247,376			$	245,108			$	222,287			$	2,268			$	25,089
Noninterest income:
Trust and securities processing			74,222				70,010				66,668				4,212				7,554
Trading and investment banking			7,118				5,461				3,771				1,657				3,347
Service charges on deposit accounts			20,089				22,261				21,080				(2,172	)			(991	)
Insurance fees and commissions			282				267				272				15				10
Brokerage fees			15,749				14,020				13,400				1,729				2,349
Bankcard fees			22,394				22,346				19,296				48				3,098
Investment securities gains (losses), net			2,623				(1,867	)			271				4,490				2,352
Other			16,266				12,421				8,559				3,845				7,707
Total noninterest income		$	158,743			$	144,919			$	133,317			$	13,824			$	25,426
Total revenue		$	406,119			$	390,027			$	355,604			$	16,092			$	50,515
Net interest income (FTE)		$	253,977			$	251,515			$	228,846
Net interest margin (FTE)			2.46	%			2.51	%			2.43	%
Total noninterest income as a % of total revenue			39.1				37.2				37.5

Net interest income

• Third quarter 2024 net interest income totaled $247.4 million, an increase of $2.3 million, or 0.9%, from the linked quarter, driven primarily by continued growth in average loans and higher levels of liquidity, partially offset by higher interest expense driven by a mix shift in the funding composition.
• Average earning assets increased $783.1 million, or 1.9%, from the linked quarter, largely driven by an increase of $581.3 million in average loans, an increase of $82.1 million in federal funds sold and resell agreements, and an increase of $75.8 million in interest-bearing due from banks.
• Average interest-bearing liabilities increased $1.1 billion, or 4.0%, from the linked quarter, primarily driven by an increase of $1.6 billion in interest-bearing deposits, partially offset by a decrease of $280.1 million in borrowed funds. Average noninterest-bearing demand deposits decreased $600.9 million, or 5.9%, as compared to the linked quarter, driven by net cash disbursements within the asset servicing and other corporate trust lines of business. Compared to the linked quarter, average commercial demand deposit balances increased 2.8% during the quarter.
• Net interest margin for the third quarter was 2.46%, a decrease of five basis points from the linked quarter, driven by the increased cost of interest-bearing liabilities due to mix shift in the funding composition, partially offset by increased loan yields and earning asset mix changes. The cost of interest-bearing liabilities increased three basis points to 4.18%. Total cost of funds increased 10 basis points from the linked quarter to 3.16%. Average loan yields increased two basis points while earning asset yields increased three basis points from the linked quarter.
• On a year-over-year basis, net interest income increased $25.1 million, or 11.3%, driven by a $1.6 billion, or 7.2%, increase in average loans, partially offset by higher interest costs due to unfavorable mix shift in the composition of liabilities as well as the impact of higher short-term interest rates.
• Compared to the third quarter of 2023, average earning assets increased $3.7 billion, or 9.8%, largely driven by an increase of $2.0 billion in interest-bearing due from banks and the increase in average loans noted above.
• Average deposits increased 12.6% compared to the third quarter of 2023. Average noninterest-bearing demand deposit balances decreased 5.1% compared to the third quarter of 2023, driven by net cash disbursements within the commercial and institutional segments. Average demand deposit balances comprised 26.9% of total deposits, compared to 29.4% in the linked quarter and 32.0% in the third quarter of 2023.
• Average borrowed funds decreased $280.1 million as compared to the linked quarter and $1.1 billion as compared to the third quarter of 2023, driven by short-term borrowings with the Federal Home Loan Bank and the Federal Reserve.

Noninterest income

• Third quarter 2024 noninterest income increased $13.8 million, or 9.5%, on a linked-quarter basis, largely due to:
  • $2.6 million in investment securities gains, primarily driven by increased valuations in the company's non-marketable securities compared to a $1.9 million loss in the linked quarter.
  • Increases of $2.8 million in fund services income and $1.6 million in corporate trust income, both recorded in trust and securities processing.
  • An increase of $2.7 million in company-owned life insurance and a gain of $1.1 million on the sale of a building during the third quarter of 2024, both recorded in other income. The increase in company-owned life insurance was offset by a proportionate increase in deferred compensation expense as noted below.
  • Increases of $1.7 million in both brokerage income and trading and investment banking, primarily driven by higher 12b-1 fees and money market income and increased trading volume, respectively.
  • These increases were partially offset by a decrease of $2.2 million in service charges on deposit accounts primarily due to lower healthcare income related to customer transfer and conversion.
• Compared to the prior year, noninterest income in the third quarter of 2024 increased $25.4 million, or 19.1%, primarily driven by:
  • An increase of $7.7 million in other income, primarily driven by an increase of $4.0 million in company-owned life insurance income, a $1.1 million gain on the sale of a building during the third quarter of 2024, and an increase of $0.7 million in bank-owned life insurance income. The increase in company-owned life insurance was offset by a proportionate increase in deferred compensation expense as noted below.
  • Increases of $5.2 million in fund services income, $1.8 million in corporate trust income, and $0.6 million in trust income, all recorded in trust and securities processing.
  • Increases of $3.3 million in trading and investment banking, driven by higher trading volume and $3.1 million in bankcard income, driven by increased interchange income.
  • Increases of $2.4 million in investment securities gains, primarily driven by increased valuations in the company's non-marketable securities and $2.3 million in brokerage income, driven by higher 12b-1 fees and money market income.

Noninterest expense

Summary of noninterest expense		UMB Financial Corporation
(unaudited, dollars in thousands)
		Q3				Q2				Q3				CQ vs.				CQ vs.
		2024				2024				2023				LQ				PY
Salaries and employee benefits		$	146,984			$	142,861			$	133,380			$	4,123			$	13,604
Occupancy, net			12,274				11,723				12,283				551				(9	)
Equipment			15,988				15,603				17,204				385				(1,216	)
Supplies and services			4,967				3,404				3,213				1,563				1,754
Marketing and business development			6,817				6,598				6,631				219				186
Processing fees			29,697				29,701				26,016				(4	)			3,681
Legal and consulting			9,518				16,566				7,230				(7,048	)			2,288
Bankcard			12,482				11,818				8,852				664				3,630
Amortization of other intangible assets			1,917				1,911				2,124				6				(207	)
Regulatory fees			4,686				2,568				6,153				2,118				(1,467	)
Other			7,124				6,314				8,355				810				(1,231	)
Total noninterest expense		$	252,454			$	249,067			$	231,441			$	3,387			$	21,013

• GAAP noninterest expense for the third quarter of 2024 was $252.5 million, an increase of $3.4 million, or 1.4%, from the linked quarter and an increase of $21.0 million, or 9.1% from the third 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 $251.5 million for the third quarter of 2024, an increase of $8.3 million, or 3.4%, from the linked quarter and an increase of $22.5 million, or 9.8%, from the third quarter of 2023.
• The linked-quarter increase in GAAP noninterest expense was driven by:
  • An increase of $2.1 million in regulatory fees expense, driven primarily by changes in loss estimates related to the industry-wide FDIC special assessment levied on banks to recoup the losses related to two of the bank failures in March 2023. The results for the third quarter of 2024 include a reduction of $1.7 million in pre-tax FDIC special assessment expense while the second quarter included a reduction of $3.8 million.
  • Increases of $1.9 million in deferred compensation expense, $1.9 million in salary and wage expense, and $1.3 million in bonus and commission expense, tied to improved company performance, all recorded in salaries and employee benefits. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
  • Increases of $1.6 million in supplies driven by purchases of computers during the third quarter, $0.8 million in other expense, and $0.7 million in bankcard expense driven by higher administrative expense.
  • These increases were partially offset by a decrease of $7.0 million in legal and consulting expense driven by expense related to the announced acquisition of Heartland Financial USA, Inc. during the linked quarter.
• The year-over-year increase in GAAP noninterest expense was driven by:
  • Increases of $5.4 million in salary and wage expense, $3.6 million in bonus and commission expense tied to improved company performance, and $2.7 million in deferred compensation expense, all recorded in salaries and employee benefits. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
  • Increases of $3.7 million in processing fees expense due to increased software subscription costs and $3.6 million in bankcard expense driven by higher administrative expense.
  • Increases of $2.3 million in legal and consulting expense related to the announced acquisition of Heartland Financial USA, Inc. and $1.8 million in supplies driven by purchases of computers during the third quarter of 2024.
  • These increases were partially offset by the following decreases:
    • A decrease of $1.5 million in regulatory fees expense driven by the aforementioned reduction of $1.7 million in FDIC special assessment expense recorded in the third quarter of 2024.
    • A decrease of $1.9 million in operational losses, recorded in other expense, driven by lower activity in the current period.

Income taxes

• The company’s effective tax rate was 19.0% for the nine months ended September 30, 2024, compared to 18.1% 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.

Balance sheet

• Average total assets for the third quarter of 2024 were $43.3 billion compared to $42.5 billion for the linked quarter and $39.5 billion for the same period in 2023.

Summary of average loans and leases - QTD Average						UMB Financial Corporation
(unaudited, dollars in thousands)
		Q3				Q2				Q3				CQ vs.				CQ vs.
		2024				2024				2023				LQ				PY
Commercial and industrial		$	10,176,502			$	9,926,855			$	9,852,335			$	249,647			$	324,167
Specialty lending			508,957				502,646				526,711				6,311				(17,754	)
Commercial real estate			9,669,076				9,360,991				8,545,206				308,085				1,123,870
Consumer real estate			3,045,229				2,998,560				2,922,753				46,669				122,476
Consumer			164,105				159,743				139,384				4,362				24,721
Credit cards			613,663				617,502				477,904				(3,839	)			135,759
Leases and other			209,631				239,532				287,174				(29,901	)			(77,543	)
Total loans		$	24,387,163			$	23,805,829			$	22,751,467			$	581,334			$	1,635,696

• Average loans for the third quarter of 2024 increased $581.3 million, or 2.4%, on a linked-quarter basis and $1.6 billion, or 7.2%, compared to the third quarter of 2023.

Summary of average securities - QTD Average						UMB Financial Corporation
(unaudited, dollars in thousands)
		Q3				Q2				Q3				CQ vs.				CQ vs.
		2024				2024				2023				LQ				PY
Securities available for sale:
U.S. Treasury		$	821,308			$	900,348			$	786,136			$	(79,040	)		$	35,172
U.S. Agencies			166,250				210,151				172,832				(43,901	)			(6,582	)
Mortgage-backed			3,888,879				3,667,289				3,611,305				221,590				277,574
State and political subdivisions			1,240,199				1,213,000				1,275,591				27,199				(35,392	)
Corporates			320,570				323,751				345,026				(3,181	)			(24,456	)
Collateralized loan obligations			340,604				336,273				346,426				4,331				(5,822	)
Total securities available for sale		$	6,777,810			$	6,650,812			$	6,537,316			$	126,998			$	240,494
Securities held to maturity:
U.S. Agencies		$	116,286			$	120,563			$	123,165			$	(4,277	)		$	(6,879	)
Mortgage-backed			2,597,430				2,656,096				2,814,467				(58,666	)			(217,037	)
State and political subdivisions			2,785,138				2,798,371				2,828,029				(13,233	)			(42,891	)
Total securities held to maturity		$	5,498,854			$	5,575,030			$	5,765,661			$	(76,176	)		$	(266,807	)
Trading securities		$	19,743			$	26,381			$	17,327			$	(6,638	)		$	2,416
Other securities			447,698				448,015				445,380				(317	)			2,318
Total securities		$	12,744,105			$	12,700,238			$	12,765,684			$	43,867			$	(21,579	)

• Average total securities increased 0.3% on a linked-quarter basis and decreased 0.2% compared to the third quarter of 2023.
• At September 30, 2024, the unrealized pre-tax net loss on the available-for-sale securities portfolio was $449.4 million, or 6.0% of the $7.5 billion amortized cost balance. At September 30, 2024, the unrealized pre-tax net loss on the securities designated as held to maturity was $563.5 million, or 10.3% of the $5.5 billion amortized cost value.

Summary of average deposits - QTD Average						UMB Financial Corporation
(unaudited, dollars in thousands)
		Q3				Q2				Q3				CQ vs.				CQ vs.
		2024				2024				2023				LQ				PY
Deposits:
Noninterest-bearing demand		$	9,502,106			$	10,103,035			$	10,014,686			$	(600,929	)		$	(512,580	)
Interest-bearing demand and savings			23,779,651				21,914,116				18,142,212				1,865,535				5,637,439
Time deposits			2,010,199				2,323,610				3,173,549				(313,411	)			(1,163,350	)
Total deposits		$	35,291,956			$	34,340,761			$	31,330,447			$	951,195			$	3,961,509
Noninterest bearing deposits as % of total			26.9	%			29.4	%			32.0	%

• Average deposits increased 2.8% on a linked-quarter basis and 12.6% compared to the third quarter of 2023.

Capital

Capital information		UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
		September 30, 2024				June 30, 2024				September 30, 2023
Total equity		$	3,535,489			$	3,227,347			$	2,806,659
Accumulated other comprehensive loss, net			(395,856	)			(605,634	)			(792,371	)
Book value per common share			72.45				66.21				57.83
Tangible book value per common share (Non-GAAP)(i)			66.86				60.58				52.06
Regulatory capital:
Common equity Tier 1 capital		$	3,691,874			$	3,591,755			$	3,357,986
Tier 1 capital			3,691,874				3,591,755				3,357,986
Total capital			4,324,890				4,214,712				3,955,093
Regulatory capital ratios:
Common equity Tier 1 capital ratio			11.22	%			11.14	%			10.77	%
Tier 1 risk-based capital ratio			11.22				11.14				10.77
Total risk-based capital ratio			13.14				13.08				12.68
Tier 1 leverage ratio			8.58				8.50				8.55

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

• At September 30, 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)
		Q3				Q2				Q1				Q4				Q3
		2024				2024				2024				2023				2023
Net charge-offs - total loans		$	8,454			$	2,856			$	3,017			$	1,352			$	4,618
Net loan charge-offs as a % of total average loans			0.14	%			0.05	%			0.05	%			0.02	%			0.08	%
Loans over 90 days past due		$	7,133			$	5,644			$	3,076			$	3,111			$	3,044
Loans over 90 days past due as a % of total loans			0.03	%			0.02	%			0.01	%			0.01	%			0.01	%
Nonaccrual and restructured loans		$	19,291			$	13,743			$	17,756			$	13,212			$	17,042
Nonaccrual and restructured loans as a % of total loans			0.08	%			0.06	%			0.08	%			0.06	%			0.07	%
Provision for credit losses		$	18,000			$	14,050			$	10,000			$	—			$	4,977

• Provision for credit losses for the third quarter increased $4.0 million from the linked quarter and $13.0 million from the third quarter of 2023. These changes are driven largely by provision tied to the $793.3 million and $2.1 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 third quarter totaled $8.5 million, or 0.14% of average loans, compared to $2.9 million, or 0.05% of average loans in the linked quarter, and $4.6 million, or 0.08% of average loans for the third quarter of 2023.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors approved a 2.6% increase in the quarterly cash dividend to $0.40 per share. The cash dividend will be payable on January 2, 2025, to shareholders of record at the close of business on December 10, 2024.

Conference Call

The company will host a conference call to discuss its third quarter 2024 earnings results on Wednesday, October 30, 2024, 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 961896. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 3Q 2024 Conference Call

A replay of the conference call may be heard through November 13, 2024, by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 489413. 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)
		September 30,
		2024				2023
ASSETS
Loans		$	24,990,791			$	22,881,689
Allowance for credit losses on loans			(248,907	)			(221,462	)
Net loans			24,741,884				22,660,227
Loans held for sale			5,176				2,824
Securities:
Available for sale			7,015,998				6,330,699
Held to maturity, net of allowance for credit losses			5,474,710				5,729,697
Trading securities			35,839				24,509
Other securities			465,477				473,255
Total securities			12,992,024				12,558,160
Federal funds sold and resell agreements			399,234				248,203
Interest-bearing due from banks			6,601,866				3,556,076
Cash and due from banks			778,069				454,705
Premises and equipment, net			222,056				249,037
Accrued income			218,651				208,594
Goodwill			207,385				207,385
Other intangibles, net			65,564				73,060
Other assets			1,264,519				1,246,411
Total assets		$	47,496,428			$	41,464,682
LIABILITIES
Deposits:
Noninterest-bearing demand		$	12,840,940			$	11,254,885
Interest-bearing demand and savings			24,798,869				18,833,614
Time deposits under $250,000			1,245,532				2,834,181
Time deposits of $250,000 or more			817,251				509,072
Total deposits			39,702,592				33,431,752
Federal funds purchased and repurchase agreements			2,023,297				1,757,602
Short-term debt			1,050,000				2,300,000
Long-term debt			384,758				382,768
Accrued expenses and taxes			387,223				319,283
Other liabilities			413,069				466,618
Total liabilities			43,960,939				38,658,023
SHAREHOLDERS' EQUITY
Common stock			55,057				55,057
Capital surplus			1,138,350				1,128,239
Retained earnings			3,074,617				2,759,415
Accumulated other comprehensive loss, net			(395,856	)			(792,371	)
Treasury stock			(336,679	)			(343,681	)
Total shareholders' equity			3,535,489				2,806,659
Total liabilities and shareholders' equity		$	47,496,428			$	41,464,682

Consolidated Statements of Income						UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2024				2023				2024				2023
INTEREST INCOME
Loans		$	416,400			$	367,485			$	1,202,317			$	1,018,920
Securities:
Taxable interest			63,466				53,455				186,159				161,091
Tax-exempt interest			24,578				25,704				74,988				76,560
Total securities income			88,044				79,159				261,147				237,651
Federal funds and resell agreements			4,990				4,567				11,726				14,107
Interest-bearing due from banks			47,969				20,551				139,831				70,923
Trading securities			291				214				1,020				502
Total interest income			557,694				471,976				1,616,041				1,342,103
INTEREST EXPENSE
Deposits			262,599				191,919				726,999				490,368
Federal funds and repurchase agreements			27,070				23,076				82,813				71,123
Other			20,649				34,694				74,311				91,018
Total interest expense			310,318				249,689				884,123				652,509
Net interest income			247,376				222,287				731,918				689,594
Provision for credit losses			18,000				4,977				42,050				41,227
Net interest income after provision for credit losses			229,376				217,310				689,868				648,367
NONINTEREST INCOME
Trust and securities processing			74,222				66,668				213,710				190,616
Trading and investment banking			7,118				3,771				18,041				13,879
Service charges on deposit accounts			20,089				21,080				63,107				63,620
Insurance fees and commissions			282				272				832				771
Brokerage fees			15,749				13,400				42,929				40,680
Bankcard fees			22,394				19,296				66,708				56,047
Investment securities gains (losses), net			2,623				271				10,127				(4,153	)
Other			16,266				8,559				47,452				40,139
Total noninterest income			158,743				133,317				462,906				401,599
NONINTEREST EXPENSE
Salaries and employee benefits			146,984				133,380				432,851				419,190
Occupancy, net			12,274				12,283				36,267				36,206
Equipment			15,988				17,204				48,094				52,139
Supplies and services			4,967				3,213				11,672				11,283
Marketing and business development			6,817				6,631				19,440				19,090
Processing fees			29,697				26,016				87,334				75,828
Legal and consulting			9,518				7,230				33,978				21,574
Bankcard			12,482				8,852				34,867				24,292
Amortization of other intangible assets			1,917				2,124				5,788				6,539
Regulatory fees			4,686				6,153				26,649				17,827
Other			7,124				8,355				19,385				25,198
Total noninterest expense			252,454				231,441				756,325				709,166
Income before income taxes			135,665				119,186				396,449				340,800
Income tax expense			26,022				22,632				75,203				61,699
NET INCOME		$	109,643			$	96,554			$	321,246			$	279,101
PER SHARE DATA
Net income – basic		$	2.25			$	1.99			$	6.59			$	5.76
Net income – diluted			2.23				1.98				6.56				5.73
Dividends			0.39				0.38				1.17				1.14
Weighted average shares outstanding – basic			48,775,072				48,525,776				48,727,914				48,492,022
Weighted average shares outstanding – diluted			49,078,497				48,762,696				48,993,581				48,737,065

Consolidated Statements of Comprehensive Income						UMB Financial Corporation
(unaudited, dollars in thousands)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2024				2023				2024				2023
Net income		$	109,643			$	96,554			$	321,246			$	279,101
Other comprehensive income (loss), before tax:
Unrealized gains and losses on debt securities:
Change in unrealized holding gains and losses, net			229,285				(151,753	)			175,005				(145,601	)
Less: Reclassification adjustment for net (gains) losses included in net income			—				(154	)			(139	)			279
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity			9,618				10,268				27,345				30,563
Change in unrealized gains and losses on debt securities			238,903				(141,639	)			202,211				(114,759	)
Unrealized gains and losses on derivative hedges:
Change in unrealized gains and losses on derivative hedges, net			40,445				3,927				18,012				4,248
Less: Reclassification adjustment for net gains included in net income			(1,666	)			(2,844	)			(7,392	)			(8,065	)
Change in unrealized gains and losses on derivative hedges			38,779				1,083				10,620				(3,817	)
Other comprehensive income (loss), before tax			277,682				(140,556	)			212,831				(118,576	)
Income tax (expense) benefit			(67,904	)			34,016				(51,752	)			28,940
Other comprehensive income (loss)			209,778				(106,540	)			161,079				(89,636	)
Comprehensive income (loss)		$	319,421			$	(9,986	)		$	482,325			$	189,465

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 (loss)			—				—				279,101				(89,636	)			—				189,465
Dividends ($1.14 per share)			—				—				(55,772	)			—				—				(55,772	)
Purchase of treasury stock			—				—				—				—				(8,096	)			(8,096	)
Issuances of equity awards, net of forfeitures			—				(10,115	)			—				—				10,834				719
Recognition of equity-based compensation			—				11,983				—				—				—				11,983
Sale of treasury stock			—				167				—				—				216				383
Exercise of stock options			—				255				—				—				629				884
Balance - September 30, 2023		$	55,057			$	1,128,239			$	2,759,415			$	(792,371	)		$	(343,681	)		$	2,806,659
Balance - January 1, 2024		$	55,057			$	1,134,363			$	2,810,824			$	(556,935	)		$	(342,890	)		$	3,100,419
Total comprehensive income			—				—				321,246				161,079				—				482,325
Dividends ($1.17 per share)			—				—				(57,453	)			—				—				(57,453	)
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			—				14,886				—				—				—				14,886
Sale of treasury stock			—				237				—				—				184				421
Exercise of stock options			—				1,433				—				—				1,842				3,275
Common stock issuance costs			—				(1,349	)			—				—				—				(1,349	)
Balance - September 30, 2024		$	55,057			$	1,138,350			$	3,074,617			$	(395,856	)		$	(336,679	)		$	3,535,489

Average Balances / Yields and Rates		UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
		Three Months Ended September 30,
		2024								2023
		Average				Average				Average				Average
		Balance				Yield/Rate				Balance				Yield/Rate
Assets
Loans, net of unearned interest		$	24,387,163				6.79	%		$	22,751,467				6.41	%
Securities:
Taxable			9,122,386				2.77				8,964,467				2.37
Tax-exempt			3,601,976				3.43				3,783,890				3.37
Total securities			12,724,362				2.96				12,748,357				2.66
Federal funds and resell agreements			328,240				6.05				303,864				5.96
Interest bearing due from banks			3,562,746				5.36				1,548,867				5.26
Trading securities			19,743				6.37				17,327				5.31
Total earning assets			41,022,254				5.47				37,369,882				5.08
Allowance for credit losses			(239,950	)							(227,878	)
Other assets			2,484,538								2,381,496
Total assets		$	43,266,842							$	39,523,500
Liabilities and Shareholders' Equity
Interest-bearing deposits		$	25,789,850				4.05	%		$	21,315,761				3.57	%
Federal funds and repurchase agreements			2,298,240				4.69				2,027,382				4.52
Borrowed funds			1,464,393				5.61				2,605,897				5.28
Total interest-bearing liabilities			29,552,483				4.18				25,949,040				3.82
Noninterest-bearing demand deposits			9,502,106								10,014,686
Other liabilities			757,379								667,920
Shareholders' equity			3,454,874								2,891,854
Total liabilities and shareholders' equity		$	43,266,842							$	39,523,500
Net interest spread							1.29	%							1.26	%
Net interest margin							2.46								2.43

Average Balances / Yields and Rates		UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
		Nine Months Ended September 30,
		2024								2023
		Average				Average				Average				Average
		Balance				Yield/Rate				Balance				Yield/Rate
Assets
Loans, net of unearned interest		$	23,850,976				6.73	%		$	22,076,977				6.17	%
Securities:
Taxable			9,140,270				2.72				9,179,230				2.35
Tax-exempt			3,657,837				3.44				3,816,122				3.36
Total securities			12,798,107				2.93				12,995,352				2.64
Federal funds and resell agreements			260,520				6.01				343,297				5.49
Interest bearing due from banks			3,451,537				5.41				1,935,029				4.90
Trading securities			21,333				6.88				13,071				5.56
Total earning assets			40,382,473				5.41				37,363,726				4.87
Allowance for credit losses			(230,181	)							(213,744	)
Other assets			2,433,597								2,322,171
Total assets		$	42,585,889							$	39,472,153
Liabilities and Shareholders' Equity
Interest-bearing deposits		$	24,500,489				3.96	%		$	20,638,982				3.18	%
Federal funds and repurchase agreements			2,367,985				4.67				2,273,826				4.18
Borrowed funds			1,796,230				5.53				2,319,652				5.25
Total interest-bearing liabilities			28,664,704				4.12				25,232,460				3.46
Noninterest-bearing demand deposits			9,889,099								10,816,120
Other liabilities			764,733								591,919
Shareholders' equity			3,267,353								2,831,654
Total liabilities and shareholders' equity		$	42,585,889							$	39,472,153
Net interest spread							1.29	%							1.41	%
Net interest margin							2.49								2.54

Business Segment Information		UMB Financial Corporation
(unaudited, dollars in thousands)
		Three Months Ended September 30, 2024
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	167,769			$	45,341			$	34,266			$	247,376
Provision for credit losses			15,764				435				1,801				18,000
Noninterest income			30,223				100,687				27,833				158,743
Noninterest expense			85,198				102,565				64,691				252,454
Income (loss) before taxes			97,030				43,028				(4,393	)			135,665
Income tax expense (benefit)			18,527				8,147				(652	)			26,022
Net income (loss)		$	78,503			$	34,881			$	(3,741	)		$	109,643
		Three Months Ended September 30, 2023
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	148,666			$	43,133			$	30,488			$	222,287
Provision for credit losses			3,010				423				1,544				4,977
Noninterest income			23,091				86,521				23,705				133,317
Noninterest expense			81,767				87,502				62,172				231,441
Income (loss) before taxes			86,980				41,729				(9,523	)			119,186
Income tax expense (benefit)			16,181				7,797				(1,346	)			22,632
Net income (loss)		$	70,799			$	33,932			$	(8,177	)		$	96,554
		Nine Months Ended September 30, 2024
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	485,503			$	146,703			$	99,712			$	731,918
Provision for credit losses			34,763				1,760				5,527				42,050
Noninterest income			100,908				288,495				73,503				462,906
Noninterest expense			263,397				298,472				194,456				756,325
Income (loss) before taxes			288,251				134,966				(26,768	)			396,449
Income tax expense (benefit)			53,747				25,016				(3,560	)			75,203
Net income (loss)		$	234,504			$	109,950			$	(23,208	)		$	321,246
		Nine Months Ended September 30, 2023
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	444,083			$	148,615			$	96,896			$	689,594
Provision for credit losses			35,110				754				5,363				41,227
Noninterest income			71,658				257,573				72,368				401,599
Noninterest expense			251,667				268,464				189,035				709,166
Income (loss) before taxes			228,964				136,970				(25,134	)			340,800
Income tax expense (benefit)			40,727				24,405				(3,433	)			61,699
Net income (loss)		$	188,237			$	112,565			$	(21,701	)		$	279,101

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 September 30, 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 September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Net income (GAAP)		$	109,643			$	96,554			$	321,246			$	279,101
Adjustments:
Acquisition expense			2,611				70				12,592				127
Severance expense			48				2,359				324				7,736
FDIC special assessment			(1,730	)			—				7,470				—
Tax-impact of adjustments (i)			(214	)			(583	)			(4,689	)			(1,887	)
Total Non-GAAP adjustments (net of tax)			715				1,846				15,697				5,976
Net operating income (Non-GAAP)		$	110,358			$	98,400			$	336,943			$	285,077
Earnings per share - diluted (GAAP)		$	2.23			$	1.98			$	6.56			$	5.73
Acquisition expense			0.06				—				0.26				—
Severance expense			—				0.05				0.01				0.16
FDIC special assessment			(0.04	)			—				0.15				—
Tax-impact of adjustments (i)			—				(0.01	)			(0.10	)			(0.04	)
Operating earnings per share - diluted (Non-GAAP)		$	2.25			$	2.02			$	6.88			$	5.85
GAAP
Return on average assets			1.01	%			0.97	%			1.01	%			0.95	%
Return on average equity			12.63				13.25				13.13				13.18
Non-GAAP
Operating return on average assets			1.01	%			0.99	%			1.06	%			0.97	%
Operating return on average equity			12.71				13.50				13.77				13.46

(i)	Calculated using the company’s marginal tax rate of 23.0% for 2024 and 24.0% for 2023.

Operating noninterest expense and operating efficiency ratio Non-GAAP reconciliations:					UMB Financial Corporation
(unaudited, dollars in thousands)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Noninterest expense		$	252,454			$	231,441			$	756,325			$	709,166
Adjustments to arrive at operating noninterest expense (pre-tax):
Acquisition expense			2,611				70				12,592				127
Severance expense			48				2,359				324				7,736
FDIC special assessment			(1,730	)			—				7,470				—
Total Non-GAAP adjustments (pre-tax)			929				2,429				20,386				7,863
Operating noninterest expense (Non-GAAP)		$	251,525			$	229,012			$	735,939			$	701,303
Noninterest expense		$	252,454			$	231,441			$	756,325			$	709,166
Less: Amortization of other intangibles			1,917				2,124				5,788				6,539
Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A)		$	250,537			$	229,317			$	750,537			$	702,627
Operating noninterest expense		$	251,525			$	229,012			$	735,939			$	701,303
Less: Amortization of other intangibles			1,917				2,124				5,788				6,539
Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B)		$	249,608			$	226,888			$	730,151			$	694,764
Net interest income		$	247,376			$	222,287			$	731,918			$	689,594
Noninterest income			158,743				133,317				462,906				401,599
Less: Gains on sales of securities available for sale, net			—				154				139				152
Total Non-GAAP Revenue (denominator A)		$	406,119			$	355,450			$	1,194,685			$	1,091,041
Efficiency ratio (numerator A/denominator A)			61.69	%			64.51	%			62.82	%			64.40	%
Operating efficiency ratio (Non-GAAP) (numerator B/denominator A)			61.46				63.83				61.12				63.68

Operating pre-tax, pre-provision income non-GAAP reconciliations:						UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Net interest income (GAAP)		$	247,376			$	222,287			$	731,918			$	689,594
Noninterest income (GAAP)			158,743				133,317				462,906				401,599
Noninterest expense (GAAP)			252,454				231,441				756,325				709,166
Adjustments to arrive at operating noninterest expense:
Acquisition expense			2,611				70				12,592				127
Severance expense			48				2,359				324				7,736
FDIC special assessment			(1,730	)			—				7,470				—
Total Non-GAAP adjustments			929				2,429				20,386				7,863
Operating noninterest expense (Non-GAAP)			251,525				229,012				735,939				701,303
Operating pre-tax, pre-provision income (Non-GAAP)		$	154,594			$	126,592			$	458,885			$	389,890
Net interest income earnings per share - diluted (GAAP)		$	5.04			$	4.56			$	14.94			$	14.15
Noninterest income (GAAP)			3.24				2.73				9.45				8.24
Noninterest expense (GAAP)			5.15				4.74				15.44				14.55
Acquisition expense			0.06				—				0.26				—
Severance expense			—				0.05				0.01				0.16
FDIC special assessment			(0.04	)			—				0.15				—
Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)		$	3.15			$	2.60			$	9.37			$	8.00

Operating pre-tax, pre-provision income - FTE Non-GAAP reconciliations:						UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Net interest income (GAAP)		$	247,376			$	222,287			$	731,918			$	689,594
Adjustments to arrive at net interest income - FTE:
Tax equivalent interest			6,601				6,559				19,524				19,689
Net interest income - FTE (Non-GAAP)			253,977				228,846				751,442				709,283
Noninterest income (GAAP)			158,743				133,317				462,906				401,599
Noninterest expense (GAAP)			252,454				231,441				756,325				709,166
Adjustments to arrive at operating noninterest expense:
Acquisition expense			2,611				70				12,592				127
Severance expense			48				2,359				324				7,736
FDIC special assessment			(1,730	)			—				7,470				—
Total Non-GAAP adjustments			929				2,429				20,386				7,863
Operating noninterest expense (Non-GAAP)			251,525				229,012				735,939				701,303
Operating pre-tax, pre-provision income - FTE (Non-GAAP)		$	161,195			$	133,151			$	478,409			$	409,579
Net interest income earnings per share - diluted (GAAP)		$	5.04			$	4.56			$	14.94			$	14.15
Tax equivalent interest			0.13				0.13				0.39				0.40
Net interest income - FTE (Non-GAAP)			5.17				4.69				15.33				14.55
Noninterest income (GAAP)			3.24				2.73				9.45				8.24
Noninterest expense (GAAP)			5.15				4.74				15.44				14.55
Acquisition expense			0.06				—				0.26				—
Severance expense			—				0.05				0.01				0.16
FDIC special assessment			(0.04	)			—				0.15				—
Operating pre-tax, pre-provision income - FTE earnings per share - diluted (Non-GAAP)		$	3.28			$	2.73			$	9.76			$	8.40

Tangible book value non-GAAP reconciliations:		UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
		As of September 30,
		2024				2023
Total shareholders' equity (GAAP)		$	3,535,489			$	2,806,659
Less: Intangible assets
Goodwill			207,385				207,385
Other intangibles, net			65,564				73,060
Total intangibles, net			272,949				280,445
Total tangible shareholders' equity (Non-GAAP)		$	3,262,540			$	2,526,214
Total shares outstanding			48,797,672				48,529,097
Ratio of total shareholders' equity (book value) per share		$	72.45			$	57.83
Ratio of total tangible shareholders' equity (tangible book value) per share (Non-GAAP)			66.86				52.06

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241024169402/en/

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) net income in Q3 2024?

UMB Financial reported net income of $109.6 million, or $2.23 per diluted share, in Q3 2024.

How much did UMBF's average loans grow in Q3 2024?

Average loans increased 9.8% on a linked-quarter annualized basis to $24.4 billion.

What was UMBF's deposit growth in Q3 2024?

Average deposits increased 11.1% on a linked-quarter annualized basis to $35.3 billion.

What was UMBF's net charge-off ratio in Q3 2024?

Net charge-offs were 0.08% of average loans for the nine months ended September 30, 2024.