UMB Financial Corporation Reports Third Quarter Net Income of $96.6 Million

Rhea-AI Summary

UMB Financial Corporation announces third quarter 2023 financial results with net income of $96.6 million and average loans increasing by 10.1% on a linked-quarter basis.

Positive

• Net income for the third quarter of 2023 was $96.6 million, a 7.3% increase compared to the second quarter of 2023 and a 9.1% increase compared to the third quarter of 2022.
• Average loans increased by 10.1% on a linked-quarter basis and by 18.0% compared to the third quarter of 2022.
• Deposit balances at September 30, 2023, totaled $33.4 billion, a 5.0% increase compared to September 30, 2022.
• Net interest margin remained consistent at 2.43%.

Negative

• Operating pre-tax, pre-provision income decreased by 1.0% on a linked-quarter basis and by 3.5% compared to the third quarter of 2022.
• Net interest income decreased by 1.5% from the linked quarter, primarily due to higher interest expense.
• Average noninterest-bearing deposits decreased by 4.9% compared to the linked quarter.
• Net interest margin decreased by one basis point from the linked quarter.

  Third Quarter 2023 Financial Highlights

• GAAP net income of $96.6 million, or $1.98 per diluted share.
• Net operating income(i) of $98.4 million, or $2.02 per diluted share.
• Average loans increased 10.1% on a linked-quarter, annualized basis, to $22.8 billion, or an 18.0% increase as compared to the third quarter of 2022.
• Deposit balances at September 30, 2023 totaled $33.4 billion, up from $31.8 billion at September 30, 2022, and consistent with June 30, 2023 balances.
• Average deposit balances of $31.3 billion, increased 5.1% as compared to the third quarter of 2022.
• Net interest margin of 2.43%, consistent with the linked quarter.
• Credit quality remained strong, with net charge-offs of just 0.08% of total loans and non-performing loans representing 0.07% of total loans, compared to 0.09% as of June 30, 2023.

KANSAS CITY, Mo.--(BUSINESS WIRE)-- UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income for the third quarter of 2023 of $96.6 million, or $1.98 per diluted share, compared to $90.1 million, or $1.85 per diluted share, in the second quarter of 2023 (linked quarter) and $88.0 million, or $1.81 per diluted share, in the third quarter of 2022.

Net operating income, a non-GAAP financial measure reconciled later in this release to net income, the nearest comparable GAAP measure, was $98.4 million, or $2.02 per diluted share, for the third quarter of 2023, compared to $93.8 million, or $1.93 per diluted share, for the linked quarter and $88.3 million, or $1.82 per diluted share, for the third quarter of 2022. 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 $126.6 million, or $2.60 per diluted share, for the third quarter of 2023, compared to $127.9 million, or $2.63 per diluted share, for the linked quarter, and $131.2 million, or $2.70 per diluted share, for the third quarter of 2022. These operating PTPP results represent decreases of 1.0% on a linked-quarter basis and 3.5%, compared to the third quarter of 2022.

“Our third quarter results demonstrated strong loan growth, stable deposits, continued momentum in many of our fee generating businesses, and solid asset quality,” said Mariner Kemper, chairman, president and chief executive officer. “Average loan balances increased more than 10% on a linked-quarter, annualized basis, driven primarily by construction draws and commercial & industrial loan growth. While net interest income for the industry continues to be impacted by higher interest costs paid to deposit clients, our net interest margin in the third quarter was essentially flat on a linked-quarter basis. Our loan portfolio, predominantly indexed to short-term interest rates, continues to reprice in the current interest rate environment as evidenced by the 21 basis points increase in loan yields as compared to the second quarter. Client sentiment remains cautiously optimistic amidst an uncertain geopolitical and interest rate environment. At UMB, our overall portfolio health remains solid as evidenced by a low loan loss ratio of just 0.08% of average loans and nonperforming loans comprising just 0.07% of total loans.”

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

Third Quarter 2023 earnings discussion

Summary of quarterly financial results		UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
		Q3				Q2				Q3
		2023				2023				2022
Net income (GAAP)		$	96,554			$	90,110			$	87,990
Earnings per share (diluted)			1.98				1.85				1.81
Operating pre-tax, pre-provision income (Non-GAAP)(i)			126,592				127,929				131,166
Operating pre-tax, pre-provision earnings per share (diluted)			2.60				2.63				2.70
Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i)			133,151				134,504				137,620
Operating pre-tax, pre-provision earnings per share - FTE (diluted)			2.73				2.77				2.83
Net operating income (Non-GAAP)(i)			98,400				93,841				88,259
Operating earnings per share (diluted)			2.02				1.93				1.82
GAAP
Return on average assets			0.97	%			0.90	%			0.96	%
Return on average equity			13.25				12.56				12.90
Efficiency ratio			64.51				65.59				63.58
Non-GAAP (i)
Operating return on average assets			0.99	%			0.93	%			0.96	%
Operating return on average equity			13.50				13.08				12.94
Operating return on average tangible equity excluding AOCI			11.77				11.63				11.34
Operating efficiency ratio			63.83				64.24				63.49

(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
		2023				2022
Net income (GAAP)		$	279,101			$	331,509
Earnings per share (diluted)			5.73				6.80
Operating pre-tax, pre-provision income (Non-GAAP)(i)			389,890				437,617
Operating pre-tax, pre-provision earnings per share (diluted)			8.00				8.98
Operating pre-tax, pre-provision income - FTE (Non-GAAP)(i)			409,579				456,748
Operating pre-tax, pre-provision earnings per share - FTE (diluted)			8.40				9.37
Net operating income (Non-GAAP)(i)			285,077				331,928
Operating earnings per share (diluted)			5.85				6.81
GAAP
Return on average assets			0.95	%			1.18	%
Return on average equity			13.18				16.05
Efficiency ratio			64.40				59.86
Non-GAAP (i)
Operating return on average assets			0.97	%			1.18	%
Operating return on average equity			13.46				16.07
Operating return on average tangible equity excluding AOCI			11.86				14.93
Operating efficiency ratio			63.68				59.81

(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)
		Q3				Q2				Q3				CQ vs.				CQ vs.
		2023				2023				2022				LQ				PY
Net interest income		$	222,287			$	225,611			$	233,485			$	(3,324	)		$	(11,198	)
Noninterest income:
Trust and securities processing			66,668				61,589				59,586				5,079				7,082
Trading and investment banking			3,771				4,800				5,387				(1,029	)			(1,616	)
Service charges on deposit accounts			21,080				21,381				19,932				(301	)			1,148
Insurance fees and commissions			272				225				375				47				(103	)
Brokerage fees			13,400				13,604				13,840				(204	)			(440	)
Bankcard fees			19,296				18,579				19,379				717				(83	)
Investment securities gains (losses), net			271				900				(1,345	)			(629	)			1,616
Other			8,559				17,004				11,569				(8,445	)			(3,010	)
Total noninterest income		$	133,317			$	138,082			$	128,723			$	(4,765	)		$	4,594
Total revenue		$	355,604			$	363,693			$	362,208			$	(8,089	)		$	(6,604	)
Net interest income (FTE)		$	228,846			$	232,186			$	239,939
Net interest margin (FTE)			2.43	%			2.44	%			2.76	%
Total noninterest income as a % of total revenue			37.5				38.0				35.5

Net interest income

• Third quarter 2023 net interest income totaled $222.3 million, a decrease of $3.3 million, or 1.5%, from the linked quarter, driven by higher interest expense due primarily to unfavorable mix shift in the composition of liabilities, combined with the impact of higher short-term interest rates. This decrease was partially offset by continued growth in average loans, coupled with increased loan yields.
• Average earning assets decreased $866.4 million, or 2.3%, from the linked quarter, largely driven by decreases of $1.2 billion in interest-bearing due from banks and $299.6 million in average securities, partially offset by an increase of $559.9 million in average loans.
• Average interest-bearing liabilities decreased $464.8 million, or 1.8%, from the linked quarter, primarily driven by decreases of $531.4 million in borrowed funds, mostly short-term borrowings, and $309.5 million in federal funds and repurchase agreements. These decreases were partially offset by an increase of $376.1 million in interest-bearing deposits. Average noninterest-bearing deposits decreased $520.6 million, or 4.9%, as compared to the linked quarter.
• Net interest margin for the third quarter was 2.43%, a decrease of one basis point from the linked quarter, driven by increased cost and mix of interest-bearing liabilities, partially offset by improved loan yields, the benefit of free funds, and earning asset mix changes. The cost of interest-bearing liabilities increased 24 basis points to 3.82%. Total cost of funds increased 19 basis points from the linked quarter to 2.75%. Average loan yields increased 21 basis points while earning asset yields increased 17 basis points from the linked quarter.
• On a year-over-year basis, net interest income decreased $11.2 million, or 4.8%, driven by higher interest expense primarily due to unfavorable mix shift in the composition of liabilities, as well as the impact of higher short-term interest rates. This decrease was partially offset by a $3.5 billion, or 18.0%, increase in average loans.
• Compared to the third quarter of 2022, average earning assets increased $2.9 billion, or 8.5%, largely driven by the increase in average loans noted above, partially offset by a decrease of $933.2 million in average securities.
• Average deposits increased 5.1% compared to the third quarter of 2022. Average noninterest-bearing demand deposit balances decreased 19.2% compared to the third quarter of 2022, driven by migration to rate-bearing deposit categories, as expected in a higher interest rate environment. Average demand deposit balances comprised 32.0% of total deposits, compared to 33.5% in the linked quarter and 41.6% in the third quarter of 2022.
• Average borrowed funds decreased $531.4 million as compared to the linked quarter and increased $2.3 billion as compared to the third quarter of 2022, driven by short-term borrowings with the Federal Home Loan Bank and the Federal Reserve Discount Window.

Noninterest income

• Third quarter 2023 noninterest income decreased $4.8 million, or 3.5%, on a linked-quarter basis, largely due to:
  • A decrease of $8.4 million in other income, primarily related to a $4.0 million gain on sale of other assets recorded in the second quarter, coupled with decreases of $3.5 million in company-owned life insurance income and $0.9 million in derivative income. The decrease in company-owned life insurance was offset by a proportionate decrease in deferred compensation expense as noted below.
  • A decrease of $1.0 million in trading and investment banking due to decreased trading volume.
  • These decreases were partially offset by increases of $3.2 million in fund services income, $1.3 million in corporate trust income, and $0.6 million in trust servicing income, all recorded in trust and securities processing.
• Compared to the prior year, noninterest income in the third quarter of 2023 increased $4.6 million, or 3.6%, primarily driven by:
  • Increases of $4.1 million in fund services income, $2.4 million in corporate trust income, and $0.6 million in trust servicing income, all recorded in trust and securities processing.
  • An increase of $1.6 million in investment securities gains, primarily driven by increased valuations in the company's marketable securities.
  • An increase of $0.5 million in bank-owned life insurance income, recorded in other income.
  • These increases were partially offset by decreases of $2.7 million in company-owned life insurance income and $1.3 million in derivative income, both recorded in other income. The decrease in company-owned life insurance was offset by a proportionate decrease in deferred compensation expense as noted below.

Noninterest expense

Summary of noninterest expense		UMB Financial Corporation
(unaudited, dollars in thousands)
		Q3			Q2			Q3			CQ vs.				CQ vs.
		2023			2023			2022			LQ				PY
Salaries and employee benefits		$	133,380		$	143,312		$	136,467		$	(9,932	)		$	(3,087	)
Occupancy, net			12,283			11,746			12,231			537				52
Equipment			17,204			17,086			18,811			118				(1,607	)
Supplies and services			3,213			4,195			3,139			(982	)			74
Marketing and business development			6,631			7,124			6,671			(493	)			(40	)
Processing fees			26,016			26,572			20,901			(556	)			5,115
Legal and consulting			7,230			7,059			10,255			171				(3,025	)
Bankcard			8,852			8,307			6,551			545				2,301
Amortization of other intangible assets			2,124			2,117			1,092			7				1,032
Regulatory fees			6,153			6,123			4,200			30				1,953
Other			8,355			7,032			11,078			1,323				(2,723	)
Total noninterest expense		$	231,441		$	240,673		$	231,396		$	(9,232	)		$	45

• Noninterest expense for the third quarter of 2023 was $231.4 million, a decrease of $9.2 million, or 3.8%, from the linked quarter and an increase of $0.1 million from the third quarter of 2022. Operating noninterest expense, a non-GAAP financial measure reconciled later in this release to noninterest expense, the nearest comparable GAAP measure, was $229.0 million for the third quarter of 2023, a decrease of $6.8 million, or 2.9%, from the linked quarter and a decrease of $2.0 million, or 0.9%, from the third quarter of 2022.
• The linked-quarter decrease in GAAP noninterest expense was driven by:
  • A decrease of $9.9 million in salaries and employee benefits expense driven by decreases of $5.3 million in employee benefits expense and $4.6 million in salaries and bonus expense. The decrease in employee benefits was driven by a decrease in deferred compensation expense of $2.8 million and a decrease of $1.3 million in other employee benefits. The decrease in salaries and bonus expense was due to a decrease of $2.5 million in severance expense and a decrease of $1.6 million in salary and wage expense. The decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.
  • These decreases were partially offset by an increase of $1.3 million in operational losses as compared to the linked quarter.
• The year-over-year increase in GAAP noninterest expense was driven by:
  • An increase of $5.1 million in processing fees expense due to the ongoing modernization of the company’s core systems and the timing of multiple software projects.
  • This increase was partially offset by the following decreases:
    • A decrease of $3.1 million in salaries and employee benefits expense, driven primarily by decreases of $1.6 million in salaries and bonus expense and $1.5 million in employee benefits expense. The decrease in salaries and wage expense is primarily due to a decrease in bonus and commission expense. The decrease in employee benefits expense is due to a decrease of $1.9 million in deferred compensation plan expense. The decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.
    • A decrease of $3.0 million in legal and consulting expense due to the timing of multiple projects.

Income taxes

• The company’s effective tax rate was 18.1% for the nine months ended September 30, 2023, compared to 18.8% for the same period in 2022. The decrease in the effective tax rate in 2023 is primarily attributable to a larger portion of income being earned from tax-exempt municipal securities.

Balance sheet

• Average total assets for the third quarter of 2023 were $39.5 billion compared to $40.4 billion for the linked quarter and $36.3 billion for the same period in 2022.

Summary of average loans and leases - QTD Average								UMB Financial Corporation
(unaudited, dollars in thousands)
		Q3			Q2			Q3			CQ vs.				CQ vs.
		2023			2023			2022			LQ				PY
Commercial and industrial		$	9,852,335		$	9,724,300		$	8,417,174		$	128,035			$	1,435,161
Specialty lending			526,711			574,220			559,797			(47,509	)			(33,086	)
Commercial real estate			8,545,206			8,178,463			6,892,484			366,743				1,652,722
Consumer real estate			2,922,753			2,833,739			2,574,926			89,014				347,827
Consumer			139,384			139,705			142,348			(321	)			(2,964	)
Credit cards			477,904			485,749			438,235			(7,845	)			39,669
Leases and other			287,174			255,425			259,298			31,749				27,876
Total loans		$	22,751,467		$	22,191,601		$	19,284,262		$	559,866			$	3,467,205

• Average loans for the third quarter of 2023 increased $559.9 million, or 2.5%, on a linked-quarter basis and $3.5 billion, or 18.0%, compared to the third quarter of 2022.

Summary of average securities - QTD Average		UMB Financial Corporation
(unaudited, dollars in thousands)
		Q3			Q2			Q3			CQ vs.				CQ vs.
		2023			2023			2022			LQ				PY
Securities available for sale:
U.S. Treasury		$	786,136		$	797,104		$	746,429		$	(10,968	)		$	39,707
U.S. Agencies			172,832			189,091			173,980			(16,259	)			(1,148	)
Mortgage-backed			3,611,305			3,813,234			4,363,838			(201,929	)			(752,533	)
State and political subdivisions			1,275,591			1,319,398			1,600,043			(43,807	)			(324,452	)
Corporates			345,026			349,318			381,151			(4,292	)			(36,125	)
Collateralized loan obligations			346,426			348,078			300,475			(1,652	)			45,951
Total securities available for sale		$	6,537,316		$	6,816,223		$	7,565,916		$	(278,907	)		$	(1,028,600	)
Securities held to maturity:
U.S. Agencies		$	123,165		$	123,135		$	123,048		$	30			$	117
Mortgage-backed			2,814,467			2,878,657			3,039,998			(64,190	)			(225,531	)
State and political subdivisions			2,828,029			2,822,218			2,621,633			5,811				206,396
Total securities held to maturity		$	5,765,661		$	5,824,010		$	5,784,679		$	(58,349	)		$	(19,018	)
Trading securities		$	17,327		$	12,538		$	5,651		$	4,789			$	11,676
Other securities			445,380			407,754			330,950			37,626				114,430
Total securities		$	12,765,684		$	13,060,525		$	13,687,196		$	(294,841	)		$	(921,512	)

• Average total securities decreased 2.3% on a linked-quarter basis and decreased 6.7% compared to the third quarter of 2022.
• At September 30, 2023, the unrealized pre-tax net loss on the available-for-sale securities portfolio was $917.8 million, or 12.7% of the $7.2 billion amortized cost value. At September 30, 2023, the unrealized pre-tax net loss on the securities designated as held to maturity was $876.1 million, or 15.3% of the $5.7 billion amortized cost value.
• During 2022, the company transferred securities with an amortized cost balance of $4.1 billion and a fair value of $3.8 billion from the available-for-sale category to the held-to-maturity category. The remaining balance of unrealized pre-tax net losses related to transferred securities was $216.5 million as of September 30, 2023 and was included in the amortized cost balance of held-to-maturity securities.
• At September 30, 2023, an after-tax gain of $55.9 million was included in accumulated other comprehensive income (AOCI) related to the company’s fair value hedges of municipal securities. During 2021, the company entered into ten of these hedge transactions, all of which have since been terminated. The gain on the terminated hedges is being amortized over the remaining life of the underlying bonds.

Summary of average deposits - QTD Average						UMB Financial Corporation
(unaudited, dollars in thousands)
		Q3				Q2				Q3				CQ vs.				CQ vs.
		2023				2023				2022				LQ				PY
Deposits:
Noninterest-bearing demand		$	10,014,686			$	10,535,325			$	12,394,251			$	(520,639	)		$	(2,379,565	)
Interest-bearing demand and savings			18,142,212				17,463,022				16,723,205				679,190				1,419,007
Time deposits			3,173,549				3,476,616				679,994				(303,067	)			2,493,555
Total deposits		$	31,330,447			$	31,474,963			$	29,797,450			$	(144,516	)		$	1,532,997
Noninterest bearing deposits as % of total			32.0	%			33.5	%			41.6	%

• Average deposits decreased 0.5% on a linked-quarter basis and increased 5.1% compared to the third quarter of 2022.
• As of September 30, 2023, the total estimated uninsured deposits were $20.7 billion, or approximately 62.0% of total deposits. Estimated uninsured deposits, when adjusted to exclude affiliate (company-owned) and collateralized deposits, were $14.2 billion, and represented approximately 42.6% of total deposits.

Capital

Capital information		UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
		September 30, 2023				June 30, 2023				September 30, 2022
Total equity		$	2,806,659			$	2,831,628			$	2,523,545
Accumulated other comprehensive loss, net			(792,371	)			(685,831	)			(759,260	)
Book value per common share			57.83				58.36				52.24
Tangible book value per common share (Non-GAAP)(i)			52.06				52.54				48.19
Regulatory capital:
Common equity Tier 1 capital		$	3,357,986			$	3,273,841			$	3,132,209
Tier 1 capital			3,357,986				3,273,841				3,132,209
Total capital			3,955,093				3,870,101				3,679,116
Regulatory capital ratios:
Common equity Tier 1 capital ratio			10.77	%			10.65	%			11.18	%
Tier 1 risk-based capital ratio			10.77				10.65				11.18
Total risk-based capital ratio			12.68				12.59				13.13
Tier 1 leverage ratio			8.55				8.16				8.66

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

• At September 30, 2023, 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
		2023				2023				2023				2022				2022
Net charge-offs (recoveries) - total loans		$	4,618			$	(139	)		$	4,643			$	2,189			$	1,173
Net loan charge-offs (recoveries) as a % of total average loans			0.08	%			(0.00	)%			0.09	%			0.04	%			0.02	%
Loans over 90 days past due		$	3,044			$	10,675			$	1,723			$	1,617			$	2,513
Loans over 90 days past due as a % of total loans			0.01	%			0.05	%			0.01	%			0.01	%			0.01	%
Nonaccrual and restructured loans		$	17,042			$	19,347			$	15,480			$	19,269			$	19,817
Nonaccrual and restructured loans as a % of total loans			0.07	%			0.09	%			0.07	%			0.09	%			0.10	%
Provision for credit losses		$	4,977			$	13,000			$	23,250			$	9,000			$	22,000

• Provision for credit losses for the third quarter totaled $5.0 million, a decrease of $8.0 million from the linked quarter and a decrease of $17.0 million from the third quarter of 2022. These changes are driven largely by changes in macro-economic variables in the current period as compared to the prior periods.
• Net charge-offs for the third quarter totaled $4.6 million, or 0.08% of average loans, compared to net recoveries of $0.1 million in the linked quarter, and net charge-offs of $1.2 million, or 0.02% of average loans, for the third quarter of 2022. On a year-to-date basis, net charge-offs totaled $9.1 million, or 0.06% of average loans, compared to $37.7 million, or 0.27% of average loans, for the same period in 2022.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors approved a 2.6% increase in the quarterly cash dividend to $0.39 per share. The cash dividend will be payable on January 2, 2024, to shareholders of record at the close of business on December 11, 2023.

Conference Call

The company plans to host a conference call to discuss its third quarter 2023 earnings results on Wednesday, October 25, 2023, 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 879142. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 3Q 2023 Conference Call

A replay of the conference call may be heard through November 8, 2023, by calling (toll-free) 866-813-9403 or (international) 204-525-0658. The replay access code required for playback is 504739. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial Information

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

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

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

Operating return on average tangible equity excluding AOCI is calculated as net operating income, divided by the company’s average tangible shareholders’ equity exclusive of AOCI for the relevant period.

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, 2022, 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 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,
		2023					2022
ASSETS
Loans		$	22,881,689				$	19,883,573
Allowance for credit losses on loans			(221,462	)				(184,913	)
Net loans			22,660,227					19,698,660
Loans held for sale			2,824					2,870
Securities:
Available for sale			6,330,699					7,128,277
Held to maturity, net of allowance for credit losses			5,729,697					5,835,187
Trading securities			24,509					14,390
Other securities			473,255					333,732
Total securities			12,558,160					13,311,586
Federal funds sold and resell agreements			248,203					716,549
Interest-bearing due from banks			3,556,076					1,768,008
Cash and due from banks			454,705					371,336
Premises and equipment, net			249,037					260,685
Accrued income			208,594					153,759
Goodwill			207,385					182,225
Other intangibles, net			73,060					13,373
Other assets			1,246,411					1,102,011
Total assets		$	41,464,682				$	37,581,062
LIABILITIES
Deposits:
Noninterest-bearing demand		$	11,254,885				$	13,876,929
Interest-bearing demand and savings			18,833,614					17,059,492
Time deposits under $250,000			2,834,181					365,644
Time deposits of $250,000 or more			509,072					504,323
Total deposits			33,431,752					31,806,388
Federal funds purchased and repurchase agreements			1,757,602					2,314,168
Short-term debt			2,300,000					—
Long-term debt			382,768					381,543
Accrued expenses and taxes			319,283					211,465
Other liabilities			466,618					343,953
Total liabilities			38,658,023					35,057,517
SHAREHOLDERS' EQUITY
Common stock			55,057					55,057
Capital surplus			1,128,239					1,120,489
Retained earnings			2,759,415					2,454,422
Accumulated other comprehensive loss, net			(792,371	)				(759,260	)
Treasury stock			(343,681	)				(347,163	)
Total shareholders' equity			2,806,659					2,523,545
Total liabilities and shareholders' equity		$	41,464,682				$	37,581,062

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,
		2023			2022				2023				2022
INTEREST INCOME
Loans		$	367,485		$	216,970			$	1,018,920			$	536,359
Securities:
Taxable interest			53,455			50,003				161,091				140,680
Tax-exempt interest			25,704			24,692				76,560				72,085
Total securities income			79,159			74,695				237,651				212,765
Federal funds and resell agreements			4,567			6,056				14,107				12,003
Interest-bearing due from banks			20,551			2,545				70,923				9,209
Trading securities			214			73				502				372
Total interest income			471,976			300,339				1,342,103				770,708
INTEREST EXPENSE
Deposits			191,919			48,457				490,368				70,069
Federal funds and repurchase agreements			23,076			14,709				71,123				21,855
Other			34,694			3,688				91,018				10,153
Total interest expense			249,689			66,854				652,509				102,077
Net interest income			222,287			233,485				689,594				668,631
Provision for credit losses			4,977			22,000				41,227				28,900
Net interest income after provision for credit losses			217,310			211,485				648,367				639,731
NONINTEREST INCOME
Trust and securities processing			66,668			59,586				190,616				178,000
Trading and investment banking			3,771			5,387				13,879				17,950
Service charges on deposit accounts			21,080			19,932				63,620				65,409
Insurance fees and commissions			272			375				771				879
Brokerage fees			13,400			13,840				40,680				29,687
Bankcard fees			19,296			19,379				56,047				53,854
Investment securities gains (losses), net			271			(1,345	)			(4,153	)			58,853
Other			8,559			11,569				40,139				24,104
Total noninterest income			133,317			128,723				401,599				428,736
NONINTEREST EXPENSE
Salaries and employee benefits			133,380			136,467				419,190				388,491
Occupancy, net			12,283			12,231				36,206				36,439
Equipment			17,204			18,811				52,139				55,290
Supplies and services			3,213			3,139				11,283				9,893
Marketing and business development			6,631			6,671				19,090				16,911
Processing fees			26,016			20,901				75,828				58,682
Legal and consulting			7,230			10,255				21,574				28,431
Bankcard			8,852			6,551				24,292				18,998
Amortization of other intangible assets			2,124			1,092				6,539				3,388
Regulatory fees			6,153			4,200				17,827				11,146
Other			8,355			11,078				25,198				32,632
Total noninterest expense			231,441			231,396				709,166				660,301
Income before income taxes			119,186			108,812				340,800				408,166
Income tax expense			22,632			20,822				61,699				76,657
NET INCOME		$	96,554		$	87,990			$	279,101			$	331,509
PER SHARE DATA
Net income – basic		$	1.99		$	1.82			$	5.76			$	6.86
Net income – diluted			1.98			1.81				5.73				6.80
Dividends			0.38			0.37				1.14				1.11
Weighted average shares outstanding – basic			48,525,776			48,300,129				48,492,022				48,351,007
Weighted average shares outstanding – diluted			48,762,696			48,648,804				48,737,065				48,723,572

Consolidated Statements of Comprehensive Income		UMB Financial Corporation
(unaudited, dollars in thousands)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2023				2022				2023				2022
Net income		$	96,554			$	87,990			$	279,101			$	331,509
Other comprehensive loss, before tax:
Unrealized gains and losses on debt securities:
Change in unrealized holding gains and losses, net			(151,753	)			(271,079	)			(145,601	)			(1,202,341	)
Less: Reclassification adjustment for net (gains) losses included in net income			(154	)			—				279				—
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity			10,268				12,587				30,563				25,708
Change in unrealized gains and losses on debt securities			(141,639	)			(258,492	)			(114,759	)			(1,176,633	)
Unrealized gains and losses on derivative hedges:
Change in unrealized gains and losses on derivative hedges, net			3,927				3,321				4,248				12,438
Less: Reclassification adjustment for net gains included in net income			(2,844	)			(1,470	)			(8,065	)			(3,411	)
Change in unrealized gains and losses on derivative hedges			1,083				1,851				(3,817	)			9,027
Other comprehensive loss, before tax			(140,556	)			(256,641	)			(118,576	)			(1,167,606	)
Income tax benefit			34,016				62,184				28,940				282,032
Other comprehensive loss			(106,540	)			(194,457	)			(89,636	)			(885,574	)
Comprehensive (loss) income		$	(9,986	)		$	(106,467	)		$	189,465			$	(554,065	)

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 Income (Loss)				Treasury Stock				Total
Balance - January 1, 2022		$	55,057		$	1,110,520			$	2,176,998			$	126,314			$	(323,465	)		$	3,145,424
Total comprehensive income (loss)			—			—				331,509				(885,574	)			—				(554,065	)
Dividends ($1.11 per share)			—			—				(54,085	)			—				—				(54,085	)
Purchase of treasury stock			—			—				—				—				(31,806	)			(31,806	)
Issuances of equity awards, net of forfeitures			—			(6,630	)			—				—				7,309				679
Recognition of equity-based compensation			—			16,062				—				—				—				16,062
Sale of treasury stock			—			257				—				—				172				429
Exercise of stock options			—			280				—				—				627				907
Balance - September 30, 2022		$	55,057		$	1,120,489			$	2,454,422			$	(759,260	)		$	(347,163	)		$	2,523,545
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

Average Balances / Yields and Rates		UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
		Three Months Ended September 30,
		2023								2022
		Average				Average				Average				Average
		Balance				Yield/Rate				Balance				Yield/Rate
Assets
Loans, net of unearned interest		$	22,751,467				6.41	%		$	19,284,262				4.46	%
Securities:
Taxable			8,964,467				2.37				9,796,212				2.03
Tax-exempt			3,783,890				3.37				3,885,333				3.18
Total securities			12,748,357				2.66				13,681,545				2.35
Federal funds and resell agreements			303,864				5.96				848,844				2.83
Interest bearing due from banks			1,548,867				5.26				632,595				1.60
Trading securities			17,327				5.31				5,651				5.69
Total earning assets			37,369,882				5.08				34,452,897				3.53
Allowance for credit losses			(227,878	)							(167,939	)
Other assets			2,381,496								2,025,193
Total assets		$	39,523,500							$	36,310,151
Liabilities and Shareholders' Equity
Interest-bearing deposits		$	21,315,761				3.57	%		$	17,403,199				1.10	%
Federal funds and repurchase agreements			2,027,382				4.52				3,055,164				1.91
Borrowed funds			2,605,897				5.28				294,739				4.96
Total interest-bearing liabilities			25,949,040				3.82				20,753,102				1.28
Noninterest-bearing demand deposits			10,014,686								12,394,251
Other liabilities			667,920								456,992
Shareholders' equity			2,891,854								2,705,806
Total liabilities and shareholders' equity		$	39,523,500							$	36,310,151
Net interest spread							1.26	%							2.25	%
Net interest margin							2.43								2.76

Average Balances / Yields and Rates		UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
		Nine Months Ended September 30,
		2023								2022
		Average				Average				Average				Average
		Balance				Yield/Rate				Balance				Yield/Rate
Assets
Loans, net of unearned interest		$	22,076,977				6.17	%		$	18,328,139				3.91	%
Securities:
Taxable			9,179,230				2.35				9,695,499				1.94
Tax-exempt			3,816,122				3.36				3,912,590				3.11
Total securities			12,995,352				2.64				13,608,089				2.28
Federal funds and resell agreements			343,297				5.49				1,070,319				1.50
Interest bearing due from banks			1,935,029				4.90				2,841,510				0.43
Trading securities			13,071				5.56				12,170				4.86
Total earning assets			37,363,726				4.87				35,860,227				2.94
Allowance for credit losses			(213,744	)							(182,647	)
Other assets			2,322,171								1,988,189
Total assets		$	39,472,153							$	37,665,769
Liabilities and Shareholders' Equity
Interest-bearing deposits		$	20,638,982				3.18	%		$	17,775,016				0.53	%
Federal funds and repurchase agreements			2,273,826				4.18				2,896,021				1.01
Borrowed funds			2,319,652				5.25				279,659				4.85
Total interest-bearing liabilities			25,232,460				3.46				20,950,696				0.65
Noninterest-bearing demand deposits			10,816,120								13,537,023
Other liabilities			591,919								416,492
Shareholders' equity			2,831,654								2,761,558
Total liabilities and shareholders' equity		$	39,472,153							$	37,665,769
Net interest spread							1.41	%							2.29	%
Net interest margin							2.54								2.56

Business Segment Information		UMB Financial Corporation
(unaudited, dollars in thousands)
		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)			16,311				7,866				(1,545	)			22,632
Net income (loss)		$	70,669			$	33,863			$	(7,978	)		$	96,554
		Three Months Ended September 30, 2022
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	150,080			$	43,382				40,023			$	233,485
Provision for credit losses			20,156				162				1,682				22,000
Noninterest income			16,785				89,386				22,552				128,723
Noninterest expense			87,120				82,073				62,203				231,396
Income (loss) before taxes			59,589				50,533				(1,310	)			108,812
Income tax expense			12,859				7,735				228				20,822
Net income (loss)		$	46,730			$	42,798			$	(1,538	)		$	87,990
		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)			41,114				24,558				(3,973	)			61,699
Net income (loss)		$	187,850			$	112,412			$	(21,161	)		$	279,101
		Nine Months Ended September 30, 2022
		Commercial Banking				Institutional Banking				Personal Banking				Total
Net interest income		$	444,176			$	104,615			$	119,840			$	668,631
Provision for credit losses			25,183				402				3,315				28,900
Noninterest income			100,379				243,740				84,617				428,736
Noninterest expense			246,230				234,185				179,886				660,301
Income before taxes			273,142				113,768				21,256				408,166
Income tax expense			52,001				22,353				2,303				76,657
Net income		$	221,141			$	91,415			$	18,953			$	331,509

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, 2023.

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,
		2023				2022				2023				2022
Net income (GAAP)		$	96,554			$	87,990			$	279,101			$	331,509
Adjustments:
Acquisition expense			70				71				127				71
Severance expense			2,359				283				7,736				480
Tax-impact of adjustments (i)			(583	)			(85	)			(1,887	)			(132	)
Total Non-GAAP adjustments (net of tax)			1,846				269				5,976				419
Net operating income (Non-GAAP)		$	98,400			$	88,259			$	285,077			$	331,928
Earnings per share - diluted (GAAP)		$	1.98			$	1.81			$	5.73			$	6.80
Acquisition expense			—				—				—				—
Severance expense			0.05				0.01				0.16				0.01
Tax-impact of adjustments (i)			(0.01	)			—				(0.04	)			—
Operating earnings per share - diluted (Non-GAAP)		$	2.02			$	1.82			$	5.85			$	6.81
GAAP
Return on average assets			0.97	%			0.96	%			0.95	%			1.18	%
Return on average equity			13.25				12.90				13.18				16.05
Non-GAAP
Operating return on average assets			0.99	%			0.96	%			0.97	%			1.18	%
Operating return on average equity			13.50				12.94				13.46				16.07

(i) Calculated using the company’s marginal tax rate of 24.0%.

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,
		2023				2022				2023				2022
Noninterest expense		$	231,441			$	231,396			$	709,166			$	660,301
Adjustments to arrive at operating noninterest expense (pre-tax):
Acquisition expense			70				71				127				71
Severance expense			2,359				283				7,736				480
Total Non-GAAP adjustments (pre-tax)			2,429				354				7,863				551
Operating noninterest expense (Non-GAAP)		$	229,012			$	231,042			$	701,303			$	659,750
Noninterest expense		$	231,441			$	231,396			$	709,166			$	660,301
Less: Amortization of other intangibles			2,124				1,092				6,539				3,388
Noninterest expense, net of amortization of other intangibles (Non-GAAP) (numerator A)		$	229,317			$	230,304			$	702,627			$	656,913
Operating noninterest expense		$	229,012			$	231,042			$	701,303			$	659,750
Less: Amortization of other intangibles			2,124				1,092				6,539				3,388
Operating expense, net of amortization of other intangibles (Non-GAAP) (numerator B)		$	226,888			$	229,950			$	694,764			$	656,362
Net interest income		$	222,287			$	233,485			$	689,594			$	668,631
Noninterest income			133,317				128,723				401,599				428,736
Less: Gains on sales of securities available for sale, net			154				—				152				—
Total Non-GAAP Revenue (denominator A)		$	355,450			$	362,208			$	1,091,041			$	1,097,367
Efficiency ratio (numerator A/denominator A)			64.51	%			63.58	%			64.40	%			59.86	%
Operating efficiency ratio (Non-GAAP) (numerator B/denominator A)			63.83				63.49				63.68				59.81

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,
		2023				2022				2023				2022
Net interest income (GAAP)		$	222,287			$	233,485			$	689,594			$	668,631
Noninterest income (GAAP)			133,317				128,723				401,599				428,736
Noninterest expense (GAAP)			231,441				231,396				709,166				660,301
Adjustments to arrive at operating noninterest expense:
Acquisition expense			70				71				127				71
Severance expense			2,359				283				7,736				480
Total Non-GAAP adjustments			2,429				354				7,863				551
Operating noninterest expense (Non-GAAP)			229,012				231,042				701,303				659,750
Operating pre-tax, pre-provision income (Non-GAAP)		$	126,592			$	131,166			$	389,890			$	437,617
Net interest income earnings per share - diluted (GAAP)		$	4.56			$	4.80			$	14.15			$	13.72
Noninterest income (GAAP)			2.73				2.65				8.24				8.80
Noninterest expense (GAAP)			4.74				4.76				14.55				13.55
Acquisition expense			—				—				—				—
Severance expense			0.05				0.01				0.16				0.01
Operating pre-tax, pre-provision earnings per share - diluted (Non-GAAP)		$	2.60			$	2.70			$	8.00			$	8.98

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,
		2023				2022				2023				2022
Net interest income (GAAP)		$	222,287			$	233,485			$	689,594			$	668,631
Adjustments to arrive at net interest income - FTE:
Tax equivalent interest			6,559				6,454				19,689				19,131
Net interest income - FTE (Non-GAAP)			228,846				239,939				709,283				687,762
Noninterest income (GAAP)			133,317				128,723				401,599				428,736
Noninterest expense (GAAP)			231,441				231,396				709,166				660,301
Adjustments to arrive at operating noninterest expense:
Acquisition expense			70				71				127				71
Severance expense			2,359				283				7,736				480
Total Non-GAAP adjustments			2,429				354				7,863				551
Operating noninterest expense (Non-GAAP)			229,012				231,042				701,303				659,750
Operating pre-tax, pre-provision income - FTE (Non-GAAP)		$	133,151			$	137,620			$	409,579			$	456,748
Net interest income earnings per share - diluted (GAAP)		$	4.56			$	4.80			$	14.15			$	13.72
Tax equivalent interest			0.13				0.13				0.40				0.39
Net interest income - FTE (Non-GAAP)			4.69				4.93				14.55				14.11
Noninterest income (GAAP)			2.73				2.65				8.24				8.80
Noninterest expense (GAAP)			4.74				4.76				14.55				13.55
Acquisition expense			—				—				—				—
Severance expense			0.05				0.01				0.16				0.01
Operating pre-tax, pre-provision income - FTE earnings per share - diluted (Non-GAAP)		$	2.73			$	2.83			$	8.40			$	9.37

Tangible book value non-GAAP reconciliations:		UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
		As of September 30,
		2023			2022
Total shareholders' equity (GAAP)		$	2,806,659		$	2,523,545
Less: Intangible assets
Goodwill			207,385			182,225
Other intangibles, net			73,060			13,373
Total intangibles, net			280,445			195,598
Total tangible shareholders' equity (Non-GAAP)		$	2,526,214		$	2,327,947
Total shares outstanding			48,529,097			48,309,638
Ratio of total shareholders' equity (book value) per share		$	57.83		$	52.24
Ratio of total tangible shareholders' equity (tangible book value) per share (Non-GAAP)			52.06			48.19

Operating return on average tangible equity excluding AOCI non-GAAP reconciliations:		UMB Financial Corporation
(unaudited, dollars in thousands)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Average total shareholders' equity (GAAP)		$	2,891,854			$	2,705,806			$	2,831,654			$	2,761,558
Less: Average intangible assets
Average goodwill			207,385				182,225				207,385				179,741
Average other intangibles, net			74,444				14,061				75,892				14,476
Average total intangibles, net			281,829				196,286				283,277				194,216
Average total tangible shareholders' equity (Non-GAAP)			2,610,025				2,509,520				2,548,377				2,567,342
Less: Average accumulated other comprehensive loss (AOCI)			(706,062	)			(576,947	)			(664,770	)			(405,343	)
Average total tangible shareholders' equity excluding AOCI (Non-GAAP)		$	3,316,087			$	3,086,467			$	3,213,147			$	2,972,685
Net operating income (Non-GAAP)		$	98,400			$	88,259			$	285,077			$	331,928
Non-GAAP
Operating return on average tangible equity excluding AOCI			11.77	%			11.34	%			11.86	%			14.93	%

 

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Media Contact: Stephanie Hague: 816.860.5088

Investor Relations Contact: Kay Gregory: 816.860.7106

Source: UMB Financial Corporation

FAQ

What was UMB Financial Corporation's net income for the third quarter of 2023?

UMB Financial Corporation reported a net income of $96.6 million for the third quarter of 2023.

How much did average loans increase on a linked-quarter basis?

Average loans increased by 10.1% on a linked-quarter basis.

What was the deposit balance at September 30, 2023?

The deposit balance at September 30, 2023, was $33.4 billion.

What was the net interest margin for the third quarter?

The net interest margin for the third quarter was 2.43%.

How did operating pre-tax, pre-provision income change compared to the third quarter of 2022?

Operating pre-tax, pre-provision income decreased by 3.5% compared to the third quarter of 2022.