UMBF UMB Financial Corporation

Selected third quarter financial highlights:

• Net loans for the three months ended September 30, 2014 increased 9.2 percent to $7.0 billion compared to the three months ended September 30, 2013
• Nonperforming loans decreased to 0.46 percent of loans as of September 30, 2014, from 0.48 percent of loans as of September 30, 2013
• Total assets under management stood at $42.1 billion as of September 30, 2014, an increase of 7.9 percent compared to the third quarter of 2013
• Company-wide noninterest income was 59.1 percent of total revenue
• Tier 1 capital ratio remains strong at 13.72 percent

UMB Financial Corporation (Nasdaq: UMBF), a diversified financial holding company, announced earnings for the three months ended September 30, 2014 of $35.6 million or $0.79 per share ($0.78 diluted). This is an increase of $1.2 million, or 3.5 percent, compared to third quarter 2013 earnings of $34.4 million or $0.85 per share ($0.83 diluted). Earnings for the nine months ended September 30, 2014, were $93.7 million or $2.09 per share ($2.06 diluted) or a decrease of $5.6 million, or 5.6 percent, compared to the prior year-to-date earnings of $99.3 million or $2.47 per share ($2.44 diluted).

“In the third quarter, UMB delivered sound results against our business model that emphasizes diverse revenue sources, high quality credit, a strong balance sheet and low-cost funding,” said Mariner Kemper, Chairman and Chief Executive Officer. “Noninterest income growth was diversified across our lines of business, allowing us to remain well-positioned in the existing low interest rate environment.

“Average loans and deposits grew, profit margins for our nonbank segments improved, and total company revenue expanded in the third quarter, year-over-year,” continued Kemper. “Our strategy to shift our earning asset mix to loans remains a top priority. Commercial lending teams in Kansas City, Dallas/Ft. Worth and Phoenix led the way with loan growth resulting in an average loan-to-deposit ratio of 55.9 percent for the third quarter compared to 54.4 percent in the third quarter 2013. Margin was flat on a linked quarter basis.”

Net Interest Income and Margin

Net interest income for the third quarter of 2014 increased $2.0 million, or 2.3 percent, compared to the same period in 2013. Average earning assets increased by $719.9 million, or 5.2 percent, compared to the third quarter of 2013. This increase was due to a $578.0 million, or 9.0 percent, increase in average loans, and a $158.9 million, or 46.4 percent, increase in interest-bearing due from banks. Net interest margin decreased eight basis points to 2.53 percent for the three months ended September 30, 2014, compared to the same quarter in 2013.

Noninterest Income and Expense

Noninterest income increased $4.9 million, or 4.0 percent, for the three months ended September 30, 2014, compared to the same period in 2013. This increase is attributable to increased trust and securities processing income of $5.6 million, or 8.2 percent, for the three months ended September 30, 2014, compared to the same period in 2013. The increase in trust and securities processing income was primarily due to a $4.1 million, or 20.0 percent, increase in fees related to institutional and personal investment management services, and a $2.3 million, or 11.1 percent, increase in fund administration and custody services, offset by a $1.6 million, or 6.6 percent decrease, in advisory fee income from the Scout Funds. Bankcard fees increased $1.9 million, or 12.7 percent, due to an increase in interchange income. These increases were offset by a decrease in gains on sales of securities available for sale of $1.1 million, a decrease in equity earnings on alternative investments related to Prairie Capital Management (“PCM”) equity method investments of $1.4 million, and a decrease in other noninterest income of $1.2 million for the three months ended September 30, 2014, compared to the same period in 2013.

In discussing fee businesses, Kemper said, “total assets under management grew to $42.1 billion, assets under administration totaled $210.6 billion, and card purchase volume topped $2.1 billion. Our differentiated business model – with more than half of revenue coming from fee businesses – provides us an enviable position among our peers and the industry.”

Noninterest expense increased $8.4 million, or 5.5 percent, for the three months ended September 30, 2014, compared to the same period in 2013. This increase is driven by higher salaries and employee benefits expense of $6.3 million due to increases in salaries and wages of $3.2 million, or 5.9 percent, and an increase in commissions and bonuses of $3.2 million or 20.3 percent. Equipment expense increased by $1.2 million, or 9.9 percent, due to an increase in computer hardware and software expenses.

Balance Sheet

Average total assets for the three months ended September 30, 2014, were $15.6 billion compared to $14.9 billion for the same period in 2013, an increase of $0.7 billion, or 4.8 percent. Average earning assets increased by $0.7 billion for the period, or 5.2 percent.

Average loan balances for the three months ended September 30, 2014, increased $578.0 million, or 9.0 percent, to $7.0 billion compared to the same period in 2013. Actual loan balances on September 30, 2014, were $7.1 billion, an increase of $0.6 billion, or 9.2 percent, compared to September 30, 2013. This increase was primarily driven by an increase in commercial real estate loans of $171.7 million, or 10.5 percent, an increase in commercial loans of $162.9 million, or 4.8 percent, and an increase in construction loans of $123.2 million. Nonperforming loans, defined as nonaccrual loans and restructured loans, increased to $32.7 million on September 30, 2014, from $31.3 million on September 30, 2013. As a percentage of loans, nonperforming loans decreased to 0.46 percent as of September 30, 2014, compared to 0.48 percent as of September 30, 2013. The company’s allowance for loan losses totaled $77.3 million, or 1.09 percent of loans, as of September 30, 2014, compared to $74.9 million, or 1.15 percent of loans, as of September 30, 2013.

For the three months ended September 30, 2014, average securities, including trading securities, totaled $7.0 billion. This is a decrease of $31.5 million, or 0.4 percent, from the same period in 2013.

Average total deposits increased $717.1 million, or 6.1 percent, to $12.5 billion for the three months ended September 30, 2014, compared to the same period in 2013. Average noninterest-bearing demand deposits increased $390.9 million, or 8.4 percent, compared to 2013. Average interest-bearing deposits increased by $326.2 million, or 4.6 percent, in 2014 as compared to 2013. Total deposits as of September 30, 2014, were $12.8 billion, compared to $13.0 billion as of September 30, 2013, a 2.2 percent decrease. Also, as of September 30, 2014, noninterest-bearing demand deposits were 42.9 percent of total deposits, compared to 43.2 percent as of September 30, 2014.

As of September 30, 2014, UMB had total shareholders’ equity of $1.6 billion, an increase of 10.4 percent as compared to the same period in 2013.

Year-to-Date

Earnings for the nine months ended September 30, 2014, were $93.7 million or $2.09 per share ($2.06 diluted). This is a decrease of $5.6 million, or 5.6 percent, compared to the prior year-to-date earnings of $99.3 million or $2.47 per share ($2.44 diluted).

Net interest income for the nine months ended September 30, 2014, increased $11.8 million, or 4.8 percent, compared to the same period in 2013. Average earning assets increased by $1.1 billion, or 7.7 percent, compared to the same period in 2013. This increase was due to a $726.0 million, or 11.8 percent, increase in average loans, and a $354.2 million, or 61.0 percent, increase in interest-bearing due from banks. Net interest margin decreased eight basis points to 2.48 percent for the nine months ended September 30, 2014, compared to the same period in 2013.

Noninterest income increased $27.2 million, or 7.6 percent, to $383.4 million for the nine months ended September 30, 2014, as compared to the same period in 2013. The increase in noninterest income is primarily driven by increased trust and securities processing income of $24.7 million, or 12.7 percent. The increase in trust and securities processing income was primarily due to a $10.9 million, or 18.1 percent, increase in fees related to institutional and personal investment management services, a $6.7 million, or 11.4 percent, increase in fund administration and custody services, and a $4.8 million, or 7.1 percent, increase in advisory fee income from the Scout Funds. Additional increases in noninterest income include a $4.6 million increase in equity earnings on alternative investments due to unrealized gains on PCM equity method investments and a $2.9 million, or 28.1 percent, increase in other noninterest income. The increase in other noninterest income is driven by a $2.8 million gain on the sale of a branch property during the first nine months of 2014 compared to the same period in 2013. These increases were offset by a decrease in gains on sales of securities available for sale of $4.5 million in the first nine months of 2014 compared to the same period in 2013.

Noninterest expense increased $46.5 million, or 10.2 percent, for the nine months ended September 30, 2014, compared to the same period in 2013. This increase is driven by an increase in salaries and employee benefits expense of $17.5 million, or 7.0 percent, a $20.3 million increase in the contingency reserve, and a $5.0 million, or 24.1 percent, increase in other noninterest expense. Other noninterest expense increased $3.0 million due to fair value adjustments on contingent consideration liabilities on acquisitions and $1.3 million due to fair value adjustments on interest rate swap transactions.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors declared a $0.235 quarterly cash dividend, which represents a 4.4 percent increase compared to the last quarterly dividend, payable on January 2, 2015, to shareholders of record at the close of business on December 10, 2014.

Conference Call

The company plans to host a conference call to discuss its 2014 third quarter earnings results on Oct. 29, 2014, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 888-337-8169 or (U.S.) 719-325-2144 and entering conference identification number 8835300. The live call can also be accessed by visiting the investor relations area of umb.com or by using the following the link:

http://event.on24.com/r.htm?e=861949&s=1&k=BF04BE655704A30A88C6CEEF87C86D48

A replay of the conference call may be heard until Nov. 12, 2014, by calling (toll-free) 888-203-1112 or (U.S.) 719-457-0820. The replay pass code required for playback is 8835300. The call replay may also be accessed via the company's website umb.com by visiting the investor relations area.

Forward-Looking Statements:

This 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. 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, 2013, 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 SEC. 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. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent 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 diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors. For more information, visit umb.com, umbfinancial.com, blog.umb.com or follow us on Twitter at @UMBBank, Facebook at facebook.com/UMBBank and LinkedIn at linkedin.com/company/umb-bank.

    Consolidated Balance Sheets       UMB Financial Corporation (unaudited, dollars in thousands)     September 30,

Assets

  2014   2013   Loans $ 7,103,163 $ 6,506,902 Allowance for loan losses   (77,316)       (74,938) Net loans   7,025,847       6,431,964 Loans held for sale 1,718 3,033 Investment securities: Available for sale 6,759,803 6,697,997 Held to maturity 237,961 175,993 Trading securities 31,790 54,994 Federal Reserve Bank Stock and other   71,192       31,478 Total investment securities   7,100,746       6,960,462 Federal funds and resell agreements 65,255 54,434 Interest-bearing due from banks 986,428 1,357,881 Cash and due from banks 395,956 604,592 Bank premises and equipment, net 257,341 247,827 Accrued income 77,263 72,030 Goodwill 209,758 209,758 Other intangibles 46,966 58,749 Other assets   116,750       183,503 Total assets $ 16,284,028     $ 16,184,233    

Liabilities

Deposits: Noninterest-bearing demand $ 5,467,810 $ 5,628,258 Interest-bearing demand and savings 6,324,535 6,248,189 Time deposits under $100,000 434,863 593,275 Time deposits of $100,000 or more   526,229       571,322 Total deposits   12,753,437       13,041,044 Federal funds and repurchase agreements 1,711,809 1,527,964 Short-term debt - 211 Long-term debt 7,067 5,130 Accrued expenses and taxes 161,194 130,398 Other liabilities   35,172       15,831 Total liabilities   14,668,679       14,720,578  

Shareholders' Equity

Common stock 55,057 55,057 Capital surplus 891,353 862,153 Retained earnings 947,664 860,138 Accumulated other comprehensive income (loss) 1,827 (15,678) Treasury stock   (280,552)       (298,015) Total shareholders' equity   1,615,349       1,463,655 Total liabilities and shareholders' equity $ 16,284,028     $ 16,184,233        

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,   2014   2013   2014   2013

Interest Income

Loans $ 61,636 $ 59,125 $ 180,844 $ 170,459 Securities: Taxable Interest 18,884 19,017 56,866 56,325 Tax-exempt interest   9,745     10,338     29,450     30,216 Total securities income 28,629 29,355 86,316 86,541 Federal funds and resell agreements 87 62 166 126 Interest bearing due from banks 426 276 2,015 1,276 Trading securities   39     278     311     808 Total interest income   90,817     89,096     269,653     259,210  

Interest Expense

Deposits 3,015 3,097 9,166 10,222 Federal funds and repurchase agreements 358 385 1,293 1,443 Other   (82)     69     53     190 Total interest expense   3,291     3,551     10,512     11,855 Net interest income 87,526 85,545 259,141 247,355 Provision for loan losses   4,500     6,500     14,000     13,500 Net interest income after provision for loan losses   83,026     79,045     245,141     233,855  

Noninterest Income

Trust and securities processing 74,062 68,465 218,982 194,263 Trading and investment banking 3,826 3,792 14,558 16,324 Service charges on deposits 21,634 21,036 63,819 63,441 Insurance fees and commissions 911 869 2,246 3,066 Brokerage fees 3,276 2,895 8,166 8,727 Bankcard fees 17,121 15,196 49,929 47,666 Gains on sales of securities available for sale 26 1,140 4,065 8,552 Equity earnings on alternative investments 2,470 3,876 8,462 3,876 Other   3,149     4,356     13,213     10,311 Total noninterest income   126,475     121,625     383,440     356,226  

Noninterest Expense

Salaries and employee benefits 90,041 83,733 268,454 251,000 Occupancy, net 10,475 10,016 29,885 29,175 Equipment 13,408 12,205 38,991 36,012 Supplies, postage and telephone 4,817 4,761 15,008 14,611 Marketing and business development 6,057 5,536 16,966 15,514 Processing fees 14,085 14,471 42,553 42,854 Legal and consulting 4,496 4,433 12,500 12,877 Bankcard 4,097 4,561 12,782 13,817 Amortization of other intangibles 3,043 3,245 9,219 10,054 Regulatory fees 2,577 2,670 7,802 7,066 Contingency Reserve - - 20,272 - Other   8,365     7,432     25,781     20,772 Total noninterest expense   161,461     153,063     500,213     453,752   Income before income taxes   48,040     47,607     128,368     136,329 Income tax provision   12,410     13,175     34,653     37,027 Net income $ 35,630   $ 34,432   $ 93,715   $ 99,302

Per Share Data

Net income- Basic $ 0.79 $ 0.85 $ 2.09 $ 2.47 Net income- Diluted 0.78 0.83 2.06 2.44 Dividends 0.225 0.215 0.675 0.645 Weighted average shares outstanding 44,890,309 40,698,700 44,819,125 40,185,351       Statements of Consolidated Comprehensive Income (Loss)     UMB Financial Corporation (unaudited, dollars in thousands, except per share data)          

Three MonthsEnded

September 30,

Nine MonthsEnded

September 30,

2014     2013     2014     2013 Net Income $ 35,630     $ 34,432 $ 93,715 $ 99,302 Other comprehensive (loss) income, net of tax: Unrealized (losses) gains on securities: Change in unrealized holding (losses) gains, net (24,213) 11,694 59,156 (151,721) Less: Reclassifications adjustment for gains included in net income   (26)       (1,140)       (4,065)       (8,552) Change in unrealized (losses) gains on securities during the period (24,239) 10,554 55,091 (160,273) Income tax benefit (expense)   9,165       (4,005)       (20,624)       59,007 Other comprehensive (loss) income   (15,074)       6,549       34,467       (101,266) Comprehensive income (loss) $ 20,556     $ 40,981     $ 128,182     $ (1,964)                           Consolidated Statements of Shareholders' Equity                               UMB Financial Corporation (unaudited, dollars in thousands, except per share data)     Accumulated Other Common Capital Retained Comprehensive Treasury   Stock       Surplus       Earnings       Income (Loss)       Stock       Total Balance - January 1, 2013 $ 55,057 $ 732,069 $ 787,015 $ 85,588 $ (380,384) $ 1,279,345 Total comprehensive income (loss) - - 99,302 (101,266) - (1,964) Cash dividends ($0.645 per share) - - (26,179) - - (26,179) Purchase of treasury stock - - - - (2,551) (2,551) Issuance of equity awards - (2,189) - - 2,638 449 Recognition of equity based compensation - 6,319 - - - 6,319 Net tax benefit related to equity compensation plans - 963 - - - 963 Sale of treasury stock - 367 - - 172 539 Exercise of stock options - 2,916 - - 2,641 5,557 Common stock issuance   -       121,708       -       -       79,469       201,177 Balance – September 30, 2013 $ 55,057     $ 862,153     $ 860,138     $ (15,678)     $ (298,015)     $ 1,463,655   Balance - January 1, 2014 $ 55,057 $ 882,407 $ 884,630 $ (32,640) $ (283,389) $ 1,506,065 Total comprehensive income - - 93,715 34,467 - 128,182 Cash dividends ($0.675 per share) - - (30,681) - - (30,681) Purchase of treasury stock - - - - (3,858) (3,858) Issuance of equity awards - (2,624) - - 3,114 490 Recognition of equity based compensation - 7,224 - - - 7,224 Net tax benefit related to equity compensation plans - 1,507 - - - 1,507 Sale of treasury stock - 455 - - 244 699 Exercise of stock options   -       2,384       -       -       3,337       5,721 Balance – September 30, 2014 $ 55,057     $ 891,353     $ 947,664     $ 1,827     $ (280,552)     $ 1,615,349           Average Balances / Yields and Rates               UMB Financial Corporation   (tax - equivalent basis)         (unaudited, dollars in thousands) Three Months Ended September 30,   2014       2013 Average Average Average Average Assets   Balance     Yield/Rate         Balance     Yield/Rate   Loans, net of unearned interest $ 6,996,363 3.50 % $ 6,418,368 3.65 % Securities: Taxable 4,864,337 1.54 4,835,235 1.56 Tax-exempt 2,128,281     2.80 2,150,108     2.95 Total securities 6,992,618 1.92 6,985,343 1.99 Federal funds and resell agreements 61,161 0.56 46,593 0.53 Interest-bearing due from banks 501,157 0.34 342,307 0.32 Trading securities 24,550     0.95 63,302     1.85 Total earning assets 14,575,849 2.62 13,855,913 2.71 Allowance for loan losses (77,347) (72,792) Other assets   1,139,820   1,140,648 Total assets $ 15,638,322 $ 14,923,769     Liabilities and Shareholders' Equity Interest-bearing deposits $ 7,444,093 0.16 % $ 7,117,927 0.17 % Federal funds and repurchase agreements 1,347,665 0.11 1,764,082 0.09 Borrowed funds 5,728     (5.68) 4,688     5.84 Total interest-bearing liabilities 8,797,486 0.15 8,886,697 0.16 Noninterest-bearing demand deposits 5,060,662 4,669,742 Other liabilities 167,704 107,000 Shareholders' equity   1,612,470   1,260,330 Total liabilities and shareholders' equity $ 15,638,322 $ 14,923,769 Net interest spread 2.47 % 2.55 % Net interest margin 2.53 2.61     Nine Months Ended September 30,   2014       2013 Average Average Average Average Assets   Balance     Yield/Rate         Balance     Yield/Rate   Loans, net of unearned interest $ 6,858,874 3.53 % $ 6,132,892 3.72 % Securities: Taxable 4,862,439 1.56 4,894,956 1.54 Tax-exempt 2,114,251     2.87 2,086,482     2.99 Total securities 6,976,690 1.96 6,981,438 1.97 Federal funds and resell agreements 40,461 0.55 31,519 0.53 Interest-bearing due from banks 934,532 0.29 580,309 0.29 Trading securities 33,257     1.46 62,470     1.89 Total earning assets 14,843,814 2.57 13,788,628 2.67 Allowance for loan losses (76,100) (71,438) Other assets   1,153,074   1,144,064 Total assets $ 15,920,788 $ 14,861,254     Liabilities and Shareholders' Equity Interest-bearing deposits $ 7,511,115 0.16 % $ 7,026,963 0.19 % Federal funds and repurchase agreements 1,534,966 0.11 1,762,087 0.11 Borrowed funds 5,735     1.24 4,888     5.20 Total interest-bearing liabilities 9,051,816 0.16 8,793,938 0.18 Noninterest-bearing demand deposits 5,126,660 4,644,338 Other liabilities 160,140 145,533 Shareholders' equity   1,582,172   1,277,445 Total liabilities and shareholders' equity $ 15,920,788 $ 14,861,254 Net interest spread 2.41 % 2.49 % Net interest margin 2.48 2.56           THIRD QUARTER 2014 FINANCIAL HIGHLIGHTS       UMB Financial Corporation (unaudited, dollars in thousands, except share and per share data)   Nine Months Ended September 30   2014         2013   Net interest income $ 259,141 $ 247,355 Provision for loan losses 14,000 13,500 Noninterest income 383,440 356,226 Noninterest expense 500,213 453,752 Income before income taxes 128,368 136,329 Net income 93,715 99,302 Net income per share - Basic 2.09 2.47 Net income per share - Diluted 2.06 2.44 Return on average assets 0.79 % 0.89 % Return on average equity 7.92 % 10.39 %   Three Months Ended September 30 Net interest income $ 87,526 $ 85,545 Provision for loan losses 4,500 6,500 Noninterest income 126,475 121,625 Noninterest expense 161,461 153,063 Income before income taxes 48,040 47,607 Net income 35,630 34,432 Net income per share - Basic 0.79 0.85 Net income per share - Diluted 0.78 0.83 Return on average assets 0.90 % 0.92 % Return on average equity 8.77 % 10.84 %   At September 30 Assets $ 16,284,028 $ 16,184,233 Loans, net of unearned interest 7,103,163 6,506,902 Securities 7,100,746 6,960,462 Deposits 12,753,437 13,041,044 Shareholders' equity 1,615,349 1,463,655 Book value per share 35.51 32.85 Market price per share 54.55 54.34 Equity to assets 9.92 % 9.04 % Allowance for loan losses $ 77,316 $ 74,938 As a % of loans 1.09 % 1.15 % Nonaccrual and restructured loans $ 32,662 $ 31,260 As a % of loans 0.46 % 0.48 % Loans over 90 days past due $ 4,678 $ 3,780 As a % of loans 0.07 % 0.06 % Other real estate owned $ 1,369 $ 1,441 Net loan charge-offs quarter-to-date $ 3,985 $ 3,209 As a % of average loans 0.23 % 0.20 % Net loan charge-offs year-to-date $ 11,434 $ 9,988 As a % of average loans 0.22 % 0.22 %   Common shares outstanding 45,485,313 44,554,834   Average Balances Nine Months Ended September 30 Assets $ 15,920,788 $ 14,861,254 Loans, net of unearned interest 6,858,874 6,132,892 Securities 7,009,947 7,043,908 Deposits 12,637,775 11,671,301 Shareholders' equity 1,582,172 1,277,445       Business Segment Information         UMB Financial Corporation (unaudited, dollars in thousands)               Three Months Ended September 30, 2014 Bank    

PaymentSolutions

     

InstitutionalInvestmentManagement

   

AssetServicing

      Total Net interest income $ 72,906 $ 13,442 $ - $ 1,178 $ 87,526 Provision for loan losses 2,446 2,054 - - 4,500 Noninterest income 48,385 21,579 33,919 22,592 126,475 Noninterest expense   99,307       22,056         20,910       19,188       161,461 Income before taxes 19,538 10,911 13,009 4,582 48,040 Income tax expense   5,081       2,795         3,350       1,184       12,410 Net income $ 14,457     $ 8,116       $ 9,659     $ 3,398     $ 35,630   Average assets $ 11,639,000 $ 2,823,000 $ 74,000 $ 1,102,000 $ 15,638,000     Three Months Ended September 30, 2013 Bank    

PaymentSolutions

   

InstitutionalInvestmentManagement

   

AssetServicing

      Total Net interest income $ 73,419 $ 11,587 $

(11)

$ 550 $ 85,545 Provision for loan losses 1,833 4,667 - - 6,500 Noninterest income 48,945 18,409 33,842 20,429 121,625 Noninterest expense   93,150       21,658         21,054       17,201       153,063 Income before taxes 27,381 3,671 12,777 3,778 47,607 Income tax expense   6,922       1,283         3,506       1,464       13,175 Net income $ 20,459     $ 2,388       $ 9,271     $ 2,314     $ 34,432   Average assets $ 11,128,000 $ 1,727,000 $ 76,000 $ 1,993,000 $ 14,924,000     Nine Months Ended September 30, 2014 Bank    

PaymentSolutions

 

InstitutionalInvestmentManagement

AssetServicing

  Total Net interest income $ 216,508 $ 38,220 $

(3)

$ 4,416 $ 259,141 Provision for loan losses 7,558 6,442 - - 14,000 Noninterest income 151,843 62,998 102,014 66,585 383,440 Noninterest expense   308,013       67,680         68,848       55,672       500,213 Income before taxes 52,780 27,096 33,163 15,329 128,368 Income tax expense   14,326       7,272         8,887       4,168       34,653 Net income $ 38,454     $ 19,824       $ 24,276     $ 11,161     $ 93,715   Average assets $ 11,914,000 $ 2,350,000 $ 74,000 $ 1,583,000 $ 15,921,000     Nine Months Ended September 30, 2013 Bank    

PaymentSolutions

 

 

InstitutionalInvestmentManagement

   

AssetServicing

      Total Net interest income $ 211,238 $ 34,327 $

(22)

$ 1,812 $ 247,355 Provision for loan losses 3,770 9,730 - - 13,500 Noninterest income 148,129 56,486 91,550 60,061 356,226 Noninterest expense   277,226       63,626         58,754       54,146       453,752 Income before taxes 78,371 17,457 32,774 7,727 136,329 Income tax expense   19,629       5,464         8,880       3,054       37,027 Net income $ 58,742     $ 11,993       $ 23,894     $ 4,673     $ 99,302   Average assets $ 11,145,000 $ 1,770,000

 

$

79,000

$ 1,867,000 $ 14,861,000  

UMB Financial CorporationMedia Contact:Kelli Christman, 816-860-5088orInvestor Relations Contact:Abby Wendel, 816-860-1685