UMB Financial
Annual Report 2016

Plain-text annual report

Focused on more. 2016 ANNUAL REPORT Industry 2016 industry median data as reported by SNL Financial as of February 15, 2017 UMBF UMB data as of December 31, 2016 +5.0% Dividend Growth Full-year 2006 through full-year 2016. +92.2% Dividend Growth UMB increased its dividend 4.1 percent in 2016, the 12th time in the past 10 years, for a total increase of 92.2 percent. 0.94% Nonperforming Loans To Total Loans 88.9% Loan-To-Deposit Ratio 0.67% Nonperforming Loans To Total Loans We continue to maintain strong asset quality regardless of the economic environment. 63.6% Loan-To-Deposit Ratio In 2016, deposits increased 9.8 percent, which allows us plenty of liquidity to meet our customers' needs. 12.19% Common Equity Tier 1 Capital Ratio 11.80% Common Equity Tier 1 Capital Ratio Our Common Equity Tier 1 capital ratio is well above regulatory minimums. +28.1% Net Interest Income Growth For the five years ended December 31, 2016 +56.3% Net Interest Income Growth Our net interest income during the last five years has been driven by our growing loan portfolio and our ongoing efforts to optimize our balance sheet. Focused on You Our brand promise, Count on more,® is at the core of everything we do. More truly defines UMB and the way we work on behalf of our customers. We believe you deserve more and you can depend on us to be more nimble, more accessible and more responsive. Focused on Service We believe customers deserve a relationship with their financial partner that isn’t just transactional—a relationship built on integrity and trust. Our 3,688 associates strive to deliver the unparalleled customer experience every day to our customers and to each other. Focused on Efficiency In 2016, we made positive progress on our initiative to reach $32.9 million in expense savings. We remain dedicated to this work because it is a renewed focus on how we do business, not just a one-time effort. Our efforts will reduce the pace of expense growth, drive positive operating leverage and increase overall improvements in performance metrics over time. Focused on Diversity The diversity of our business model sets us apart in the industry. With 49.0 percent of our revenue coming from fee-based businesses, paired with our commitment to a strong balance sheet, we have a solid foundation that will help ensure the long-term success of UMB. Focused on the Future We are focused on growing our businesses in the most efficient, healthy and profitable way possible, without compromising our underlying values. We never make short-term decisions that will negatively impact our customers or the long-term value of our franchise. 1 Revenue Streams Revenue Streams Rev by Business Segment Rev by Business Segment Net Income Business Segment Net Income Business Segment Revenue by Segment Net Income by Segment UMB Financial Corporation We are a diversified financial services holding company aligned into three strategic business segments to best serve our customers and achieve long-term growth opportunities. 82.0% UMB Bank 10.2% UMB Fund Services 7.8% Scout Investments 89.9% UMB Bank 9.1% UMB Fund Services 1.0% Scout Investments 2016 numbers as of December 31, 2016. 2015 numbers as of December 31, 2015. Total Revenue $971.4M 2015 $878.5M Earnings Per Share (Diluted) $3.22 2015 $2.44 Market Cap Total Assets $3.8B 2015 $2.3B 5-Year Earnings Per Share Growth (CAGR) (Diluted) +4.1% 2015 +1.5% $20.7B 2015 $19.1B Dividends Per Share Investment Assets Under Management $40.9B 2015 $40.0B Price-to-Earnings Ratio $.99 2015 $.95 23.9 2015 19.0 Percentage Noninterest Bearing Deposits 40.2% 2015 41.8% Percent Revenue From Fees 49.0% 2015 53.1% UMB Financial Corporation Our Footprint We serve customers across the entire country. Fund Services National Presence Healthcare Services UMB Bank Presence UMB Financial Headquarters Corporate Trust / Institutional Banking UMB Financial Corporation Headquarters UMB Bank Presence National Presence: Corporate Trust / Investment Banking Division Fund Services Healthcare Services Marquette Asset Management Marquette Business Credit Marquette Transportation Finance Prairie Capital Management Private Wealth Management / Personal Trust Scout Investments UMB Trust Company of South Dakota Marquette Transportation Finance Institutional Asset Management Marquette Asset Management Marquette Business Credit Payment Solutions Prairie Capital Private Wealth Management / Personal Trust Scout Investments NASDAQ UMBF UMB Financial UMBFinancial.com Headquarters KC, MO UMB Bank UMB.com Locations / ATMs 109/296 UMB Fund Services UMBFS.com Years in Business 104 Scout Investments ScoutInv.com Employees 3,688 Follow UMB RAM SHANKAR Chief Financial Officer, UMB Financial Corporation MARINER KEMPER Chairman, UMB Bank, n.a.; Chairman, President and Chief Executive Officer, UMB Financial Corporation MICHAEL HAGEDORN Chairman and Chief Executive Officer, UMB Bank n.a.; Vice Chairman, UMB Financial Corporation 2 Focused on more. Dear fellow shareholders, Our customers are telling us 2017 is a year full of potential for positive change. Most individuals and businesses are optimistic about economic prospects and the potential for pro-growth policies. The industry is hopeful for a gradual return to more normal interest rates. Uncertainties persist, but we are all moving forward and we remain laser focused on delivering more to our customers. Customers are always at the center of UMB’s attention. Our promise— Count on more—means we fix our sights on delivering service that exceeds expectations. More helps businesses and consumers achieve their goals and dreams for the future. That’s our focus, day in and day out. For UMB, 2016 was a year of great progress. We recorded record revenue, improved net income and renewed our commitment to operational efficiency and financial discipline. Changes across our diversified financial services business drove growth and improved returns. We continue to focus on the right things to create a bright future for our customers and shareholders. MILESTONES OF 2016 I am incredibly proud of the results UMB associates delivered in 2016. Among our milestones: • Revenue grew to a record level, propelled by double-digit expansion in loans and net interest income, plus a modest increase in fee income. • We maintained our focus on efficiency and reduced our ratio of expenses to revenue. • We improved profitability by working to optimize the asset mix on our balance sheet. • We managed capital effectively to fund growth and potential new opportunities. UMB shareholders benefited from a 32.1 percent increase in earnings per share in 2016, and we increased the dividend 4.1 percent going into 2017. Our hard work is showing in the bottom line and we still have opportunity ahead of us in 2017. GROWING ROBUSTLY UMB’s diversified financial services model, along with the strategic actions we have taken in recent years, drove robust growth in assets, revenue and earnings in 2016. 3 2016 Highlights FEB NEARLY 9,000 CUSTOMERS CONVERTED IN ACQUISITION INTEGRATION Following the 2015 acquisition of Marquette Financial Companies, UMB successfully converted all Meridian Bank and Meridian Bank Texas customers in February 2016. JUNE $10 BILLION IN TOTAL LOANS UMB Financial Corporation’s total loans surpassed $10 billion in the second quarter of 2016 for the first time in the company's history. AUG UMB FORMS NEW HEALTHCARE SERVICES STRATEGIC ADVISORY COUNCIL This council is intended to examine various healthcare topics, including policy, payments, innovation, consumer trends and benefit accounts to benefit UMB’s strategic direction and future growth in the industry. SEPT SAME-DAY ACH UMB began processing same-day ACH credit origination for its customers on day one of the new feature's implementation by the National Automated Clearing House (NACHA). OCT NAMED TOP 25 FARM LENDER UMB's Agribusiness division rose from the top 50 U.S. farm lenders to number 23 on the list as of third quarter 2016. Source: American Bankers Association (ABA). DEC $20 BILLION IN TOTAL ASSETS UMB Financial Corporation's total assets exceeded $20 billion at end of year 2016—a company record. 4 Net Interest Income Millions of Dollars Noninterest Income Millions of Dollars Net Income Net Income Millions of Dollars Millions of Dollars Net Interest Income Net Interest Income Net Interest Income Millions of Dollars Millions of Dollars Millions of Dollars Noninterest Income Noninterest Income Millions of Dollars Millions of Dollars Noninterest Income Millions of Dollars Net Income Net Income Millions of Dollars Millions of Dollars $495 $499 $492 $412 $458 $476 $466 $134 $123 $121 $116 $350 $320 $333 $159 $495 $495 $499 $499 $492 $492 $412 $412 $458 $458 $476 $476 $466 $466 $159 $159 $134 $134 $123 $123 $121 $116 $121 $116 $350 $350 $320 $320 $333 $333 12 13 14 15 16 12 13 14 15 16 12 13 14 15 16 12 12 13 13 14 14 15 15 16 16 12 12 13 13 14 14 15 15 16 16 12 12 13 13 14 14 15 15 16 16 500 400 300 200 100 0 500 400 300 200 100 0 200 150 100 50 0 200 200 150 150 100 100 50 50 0 0 500 500 500 500 300 400 300 400 UMB Bank led the expansion with an 18.6 percent year-over-year increase in average loans, to more than $9.0 billion. The Marquette acquisition in mid-2015 doubled our presence in the Arizona and Texas markets, and our other regions continued to deliver solid growth. Our combined banking teams across the footprint now offer a broader line of financial services to the customer base. 100 200 200 100 0 0 300 400 400 300 • Average total assets grew at a 9.6 percent rate from 2011 to 2016; • Average loans increased at an industry-leading 16.0 percent; • Net interest income grew 9.3 percent; • Noninterest income experienced 2.8 percent growth; and, • Book value per share grew 6.0 percent. 200 100 200 100 0 0 Another important part of our growth comes from our strong, diverse deposit base. UMB excels in gathering core deposits from commercial, consumer, institutional and our health savings accounts (HSAs). These deposits provide low-cost funding for loans and other assets, creating a competitive advantage. When you have been in business for more than a century, people get to know you, and you get to know them. Relationships with customers drive success. Many of our associates have been with us 20 or 30 years, so they know our customers and can help solve problems or address needs as they develop. UMB’s experienced bankers are accessible, responsive and dedicated to service. Several fee-based businesses— healthcare and card services, institutional banking and asset servicing—also delivered profitable growth, more than offsetting a decline in institutional investment management revenue following large equity outflows and the resulting change in asset mix. Investment performance in our institutional investment management segment improved, and fund flows may turn around as investors respond. MORE GROWTH I have been known to say we run our company for the long haul, not the quarter. Like many of our customers, we seek to increase the value of our business by steady, long-term growth. Key metrics indicate our success over the past five years (compound annual growth rates): 5 We are focused on strengthening our base of services, growing into new markets and increasing efficiency—UMB’s future is bright. “ “ MORE EFFICIENT We announced efficiency initiatives in mid-2015, targeting $32.9 million in cost savings and outlining actions to improve our efficiency ratio to 70 percent. We continue to execute on those initiatives and closed on our near-term goals with a cumulative $29.9 million in efficiencies accomplished by 2016 year-end, and a full-year efficiency ratio of 72.4 percent in 2016 vs. 77.6 percent in 2015. We have become more disciplined than ever and are committed to maintaining strong operating leverage. We are evolving into a performance culture. All across UMB, I see associates asking how we can be smarter, bolder and more innovative, and they are making operational improvements, small and large. It’s an entrepreneurial attitude, and I couldn’t be more proud. Part of this new energy and attitude is the work we did around branch optimization. We call it the “4K” delivery model which takes a look at everything including changes in staffing, hours and incentives—resulting in initial improvements of 20-30 percent in branch-level efficiency. In addition, in 2016, we closed 10 smaller, less profitable branches and opened one strategic new location. DIVERSE BASE FOR GROWTH The diversity of UMB’s business goes beyond our roughly fifty-fifty split between interest and fee-based income. Our bank segment spans four lines of business: Commercial Banking, Personal Banking, Institutional Banking and Healthcare Services. These four lines of business broaden UMB’s customer base and enhance our geographic diversity. We also have diversified lending by building industry specialties such as commercial real estate, aviation and agribusiness. Two national specialty-lending platforms acquired with Marquette Financial Companies in 2015 are growing customer relationships for accounts receivable financing and asset-based lending. And these businesses are creating cross-selling opportunities with complementary UMB services. Part of our diverse business model success is due to our fee-based businesses that cross a number of services and industries. Fee income has remained stable even as market cycles impacted our institutional investment management business. 6 2016 Average Loan Growth +18.6% 2016 Total Asset Growth +8.3% 2016 Total Deposit Growth +9.8% 2016 Loan-to-Deposit Ratio +63.6% UMB Healthcare Services continues to grow rapidly as one of the top HSA custodians in the nation. At year-end 2016, we held $1.8 billion in HSA deposits and investment assets, up 36.6 percent from a year earlier. The number of HSA accounts rose 22 percent to 982,000. According to industry reports, UMB holds a 5 percent share of the nationwide HSA market, ranking fifth by number of accounts and sixth by deposits and investment assets. Our Institutional Banking businesses are performing well, including rapid growth in our $51.9 billion FDIC sweep program, which offers broker-dealer clients a liquid alternative to overnight money funds. We opened a New York investment banking office in 2016 for underwriting, trading and distribution of bonds to institutional clients, as well as corporate trust activities. Institutional investment management assets under management were flat as volatility in the recent market cycle hurt some strategies. Improving performance is our priority in an effort to turn around fund flows. We hope stronger performance numbers will lead to stronger flows in 2017. The asset servicing segment delivered steady results, with UMB Fund Services assets under administration growing modestly. The number of alternative investment funds serviced grew 11.5 percent in 2016, including noticeable growth in private equity funds. Our strength in fee revenue remains a differentiator and a focus. Noninterest income represented 49.0 percent of our total revenue in 2016 compared to a peer median of 18.6 percent. We believe a broad base in our business empowers long-term value creation for our shareholders. OPTIMIZING OUR BALANCE SHEET An ongoing strategy for UMB is adjusting the asset mix on our balance sheet to optimize returns, and 2016 brought tangible progress. Most of our emphasis has been on growing UMB’s loan portfolio to shift interest-earning assets from relatively low-yield securities to higher-earning loan relationships and from variable to fixed rates which can carry higher yields—without sacrificing our culture of strong credit underwriting. In 2016, UMB Bank increased average loans by $1.6 billion, or 18.6 percent, 7 2016 Total Revenue Growth +10.6% 2016 Book Value Per Share Growth +3.1% 2016 Net Interest Income Growth 2016 Total Card Purchase Volume Growth +20.2% +7.6% contributing to a strong year-over- year increase in net interest income. Our focus on specialized loan verticals, with experienced lenders cultivating client relationships to meet industry- specific needs, has worked well for UMB. For example, we added $828 million in commercial real estate and construction loans in 2016, funding projects such as office buildings, senior housing, multifamily and industrial development. We reaped additional yield while applying our usual risk management and underwriting disciplines. In addition, our lending teams have increased discipline around pricing, leading to better risk-adjusted returns. While working to reduce the size of our securities portfolio relative to loans, we have also achieved modest increases in yield as we reinvested cash when older, lower-yielding securities rolled off. Net interest margin for 2016 was 2.88 percent, an improvement of 24 basis points from 2015. Increased volume and a changing mix of assets drove most of that increase, while rising interest rates (including the impact of the December 2016 Fed increase and higher LIBOR rates) also benefited us. RUNWAY FOR GROWTH Based on strategic actions we have taken in recent years, UMB has a long runway for growth. Our diversified business gives us more levers to pull than many competitors. Three factors hold special potential for organic growth or expansion: Geographic markets. For UMB Bank, the Kansas City region is the metropolitan area where we have our largest presence—the No. 1 market share, with just fewer than 20 percent of deposits. The next two are the Denver/Colorado Springs and St. Louis markets, where UMB has less than a 2 percent share. In Phoenix-Scottsdale and Dallas-Fort Worth, even after doubling our presence, we have very small market shares. Each of these large markets offers us the opportunity to achieve outsized growth. We believe we have the right people on the ground to compete and succeed. Loan verticals. As I mentioned, we have built skilled teams of specialists with relationships in commercial real estate and construction, aviation and agribusiness—industries where unmet 8 Revenue Streams Revenue Streams Rev by Business Segment Rev by Business Segment Net Income Business Segment Net Income Business Segment Diverse Income Revenue Streams Revenue by Segment 51% Net Interest Income 49% Noninterest Income 82.0% UMB Bank 10.2% UMB Fund Services 7.8% Scout Investments customer needs create opportunities. Combining entrepreneurial drive with our long-standing emphasis on prudent underwriting, we will continue to focus on growth in these verticals. The right products and services. Customer relationships are our constant focus, and we work to ensure UMB provides a depth and breadth of products and services that can meet our customers’ needs. From accounts receivable financing to healthcare plans, and from treasury solutions to capital markets, we can deliver options and opportunities. PRIORITIES FOR 2017 No question, 2017 is a time of transitions. Post-election political change and regulatory reforms may accelerate U.S. economic growth. Already influenced by the strength of the economy, the Federal Reserve is shifting from a “lower-for-longer” interest rate policy to gradual normalization. How these macroeconomic shifts will impact UMB is hard to quantify, but the economic trends could be good for lending and net interest margin. Additionally, healthcare reform could benefit HSA demand. 9 As we have always said, though, UMB does not depend on what comes out of Washington D.C.—or on economic cycles—to determine our success. Our emphasis in 2017 is to focus and continue executing on our strategic priorities. Among them: • Customer experience. We continue to focus on delivering the unparalleled customer experience. Our associates have the authority to make quick decisions, are highly accessible and go the extra mile in service. We are also investing in technology to upgrade the online and mobile experience, which will come with the side benefit of freeing associates’ time to help customers personally. • Performance culture. Across the business, we are focused on improving operating leverage by growing revenue and managing expenses closely. All of our teams are paying attention to performance metrics including our efficiency ratio and return on equity. • Asset mix. We will continue to optimize our balance sheet to improve net interest margin. UMB’s above- market growth in loans deploys deposits into higher-yielding assets, and we continue to seek incremental risk-adjusted returns in our securities portfolio. At the end of 2016, we reported record annual net income, which increased nearly 37 percent from 2015. MARINER KEMPER Chairman, UMB Bank, n.a.; Chairman, President and Chief Executive Officer, UMB Financial Corporation 2016 was an interesting year for the banking industry, with the continued low-rate outlook turning to a more positive sentiment almost overnight. Paired with our progress—double digit year-over-year loan growth and continued improvement on our profitability measures— we are ready to take on the year ahead. 10 ““Ten-Year Total Return UMBF vs. SNL US Banks Index and S&P 500 $ 250 $ 200 $ 150 $ 100 $ 50 06 $251 $196 $101 07 08 09 10 11 12 13 14 15 16 UMBF SNL US BANKS S&P 500 This summarizes the cumulative return experienced by UMBF shareholders for the years 2007 through 2016, compared to the S&P 500 Stock Index and the SNL US Banks Index. In all cases, the return assumes a reinvestment of dividends. Source: SNL Financial • Financial strength. We are committed to effectively managing capital to keep UMB among the strongest U.S. financial institutions. Our capital position provides funding for organic business growth and potential future acquisitions, and our focus is on continuing to be good stewards. on strengthening our base of services, growing into new markets and increasing efficiency—UMB’s future is bright. Thank you for your continued support. We all look forward to delivering more in 2017. Sincerely, Mariner Kemper Chairman, UMB Bank, n.a.; Chairman, President and Chief Executive Officer, UMB Financial Corporation March 2, 2017 250 300 200 OUR PEOPLE AND CORE VALUES At the end of the day, all this translates to more for you. Behind all that UMB does to create value for our customers and shareholders are 3,688 hardworking associates across our diverse businesses. We share core values of integrity and respect, appreciation of entrepreneurs and families, and strong credit standards. We hire the best people, and they stay with UMB—resulting in long-tenured associates with deep expertise. 100 150 50 0 Most trends in the 2017 business environment are encouraging. Of course, political and global tensions continue to cause anxiety, but Americans are resilient, and entrepreneurial businesses excel at adapting to challenges. UMB associates embrace that same spirit. I see daily signs that our performance culture is progressing. We are focused 11 We remain focused on loan growth, expense control and growing our business in new markets, which has positioned us well for 2017. MICHAEL HAGEDORN Chairman and Chief Executive Officer, UMB Bank n.a.; Vice Chairman, UMB Financial Corporation With dedicated associates across the country, UMB Bank continues to provide meaningful solutions and service to our customers while improving our operational efficiency and growth momentum. 12 ““UMB offers a comprehensive suite of commercial, small business and consumer banking services, as well as full-service investment and private wealth management capabilities. Percent of Noninterest Income 50.4% Trust & Securities Processing 18.2% Deposit Service Charges 14.4% Bankcard Fees 4.5% Trading & Investment Banking 5.5% Other 3.7% Brokerage Fees 1.8% Gains on Securities Sales 0.9% Insurance Fees 0.6% Equity Earnings on Alternative Investment $15.3B Average Total Deposits $10.0B Average Loans $2.4B Loan Production Average deposit growth was 9.0 percent in 2016. Average loans grew 18.6 percent in 2016. Total gross loan production grew 7.9 percent compared to 2015. Loan Composition Deposit Composition Loan Composition Deposit Composition Deposit Composition Loan Composition 53.0% Interest-Bearing Demand and Savings Deposits 40.2% Noninterest-Bearing Demand Deposits 6.8% Time Deposits 42.3% Commercial & Industrial 30.0% Real Estate — Commercial 7.0% Real Estate — Construction 6.8% Real Estate — HELOC 5.2% Real Estate — Residential 2.6% Consumer Credit Card 2.1% Asset Based Loans 1.3% Other Consumer 1.4% Commercial Credit Card 1.3% Factoring Loans 13 Average Loans Billions of Dollars $10.0 $8.4 $7.0 $6.2 $5.3 12 13 14 15 16 During the past five years, our average loans have grown at a 16.0 percent compound annual growth rate. 100 80 60 40 20 0 UMB Commercial Banking UMB offers a diverse range of commercial banking solutions for discerning business customers looking for personal attention and custom offerings. Our team is dedicated to helping clients grow and succeed in the most efficient, healthy and profitable way possible. Commercial Loans by Region 39.5% Kansas City 12.3% Colorado 10.9% St. Louis 9.4% Arizona $4.8 $4.6 $4.2 7.6% Greater MO $3.5 $3.6 5.5% Texas 5.4% Kansas 3.4% Oklahoma 2.5% Nebraska 2.2% Marquette Business Credit 12 14 1.3% Marquette Transportation Finance 13 16 15 Commercial & Industrial Loans Billions of Dollars $4.4 $4.2 $3.9 $3.3 $2.9 $3.2 $2.7 $1.9 $1.7 $1.4 $1.85 $1.55 $1.40 $1.26 $1.17 12 13 14 15 16 12 13 14 15 16 12 13 14 15 16 $4.8 $4.6 $4.2 $3.6 $3.5 $4.4 $4.2 $3.9 $3.3 $2.9 5 4 3 2 1 0 5 4 3 2 1 0 5 4 3 2 1 0 Average Commercial Deposits Billions of Dollars 5 5 Commercial Cardholder Purchase Volume Billions of Dollars 4 Commercial Real Estate Loans Billions of Dollars 4 $4.8 $4.6 $4.2 $4.2 $4.8 $3.2 $4.4 $4.6 $4.2 $2.7 $3.9 $3.6 $3.5 $3.6 $3.5 $3.3 $1.9 $1.7 $2.9 $1.4 $4.4 $1.85 $4.2 $3.9 $1.55 $1.40 $3.3 $1.26 3 2 1 $1.17 $2.9 0 $3.2 $2.7 $1.9 $1.7 3 2 1 $1.4 0 $1.7 $1.17 $1.4 12 13 14 15 16 12 13 14 15 16 12 13 14 15 16 12 13 12 12 14 13 13 15 14 14 16 15 15 16 16 12 12 13 13 14 14 15 15 16 16 12 13 14 15 16 12 13 12 14 13 15 14 16 15 16 12 13 14 15 16 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2.0 1.5 1.0 0.5 0.0 5 3.5 5 5 2.0 3 4 2 4 3 2 4 3 3.0 1.5 2.5 2.0 1.5 Our relationships with our customers are our number one focus, and we have expanded services to meet their varying needs, including increasing our capital markets and business banking solutions. 0.5 1 0 0.0 1.0 0.0 1.0 0.5 1 0 0 1 2 JIM RINE President, Western Region, Commercial Banking 14 $3.2 $1.85 $2.7 $1.55 $1.40 $1.9 $1.26 $1.85 $1.55 $1.40 $1.26 $1.17 2.0 1.5 1.0 0.5 0.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2.0 1.5 1.0 0.5 0.0 ““ +43.6% Growth in Business Banking earning assets. +53.5% Healthcare Banking loan growth. $1.7B Growth in total Commercial earning assets. The commercial division made progress in 2016, reducing our efficiency ratio from 62 percent to 57 percent. In 2017, we will maintain our focus on reducing expenses and strengthening our business. CRAIG ANDERSON President, Eastern Region, Commercial Banking Specialty Lending +54.3% Growth in actual loan balance as of 12/31/16 compared to prior year for Marquette Transportation Finance. +20.1% Growth in average size of new deals compared to 2015 for Marquette Business Credit. No. 23 U.S. Banks for Farm Lending. Source: ABA, as of September 30, 2016 17 New business accounts gained in 2016 for UMB Capital Markets. Top 25 U.S. Banks for Automated Clearing House origination. Source: NACHA 15 ““UMB Personal Banking UMB offers financial solutions to customers who value an individualized relationship and advisory experience. For more than a century, we’ve invested in our people as a resource who can help clients achieve their unique financial and lifestyle goals. The difference with UMB Personal Banking is our focus on the client. We know every relationship is as unique as the customers themselves, so we provide an individualized, advisory experience through every stage of life. DANA ABRAHAM President, Personal Banking No. 1 Kansas City market share leader in deposits for the sixth year in a row at 19.6%. Source: FDIC 2016 Market Share Report UMB Personal Banking added a Private Wealth Management team in Dallas and Ft. Worth, Texas, while also expanding service offerings. 2.7% Total deposit growth in 2016 for consumer and small business. We continue to make progress on our banking center and delivery channel efficiency program which includes changes to staffing, operating hours and associate incentive structures. In 2016, UMB Bank opened a new banking center in Olathe, Kansas which was designed and built from the ground-up with our customers’ experience in mind. 16 ““Private Wealth Management Your Story. Our Focus.TM Private Banking Focused on You Investment Management Built for Your Needs Personal credit and banking solutions customized for your financial goals and fit for your lifestyle. Our research-driven investment options, backed by experienced portfolio managers, deliver tailored strategies that meet your long-term goals. Trust and Lifestyle Management Requires Experience Our advisors understand the value of protecting and growing your hard-earned assets. Discover how they can help you manage your legacy. Managing Risk Creates Confidence Protect your legacy with a comprehensive risk management strategy that ensures you can support your loved ones for years to come. Assets Under Management by Type Excluding Scout Investments Assets Under Management by Business Billions of Dollars Excluding Scout Investments 50% Trust 32% Investment Advisory 11% Charitable 4% IRAs 4% Other $9.5 Private Wealth, Marquette Asset Management & Institutional Asset Management $3.7 Prairie Capital Management $0.4 UMB Financial Services, Inc. “ “ At UMB you are not just a number like other institutions. They take pride in knowing their customers by name and genuinely care about you as a customer. C. AND B. LAURITA Golden, Colorado Private Wealth Management Clients $1.1 Billion Total Private Wealth Management deposits as of December 31, 2016. +26.1% Growth in average Private Banking loans which increased from $519 million in 2015 to $654 million in 2016. 17 UMB Institutional Banking UMB Institutional Banking is committed to delivering solutions and performance with integrity, and we strive to maintain the highest standard of service for our institutional clients throughout the U.S. Total Corporate Trusts Under Administration and Money Market Funds Billions of Dollars Excluding Scout Investments $15.5B $14.2B $14.5B $13.7B $13.7B 12 13 14 15 16 Our commitment to teamwork is what drives us to succeed and has enabled us to provide our clients with the solutions and level of service they deserve. We look forward to continued expansion and success in 2017. JIM CORNELIUS President, Institutional Banking $51.9B Total of FDIC-Insured Deposit Sweep Program at the end of 2016. $23.7B Par value of bonds traded for investment banking in 2016. Top 15% In the last 10 years, UMB has ranked as one of the country’s top managing bank qualified underwriters. Source: Bloomberg 18 ““$5.7 $5.3 $4.4 $3.0 $2.1 6 5 4 3 2 1 0 UMB Healthcare Services UMB Healthcare Services provides experience and powerful processing capabilities to deliver healthcare payment solutions, including custodial services for health savings accounts (HSAs) and benefit cards, to our healthcare partners. Healthcare Savings Account Deposits & Assets Total deposits and assets increased to $1.8 billion in 2016. 982 805 621 438 315 $642M $431M $1,765M $1,292M $918M 12 13 14 15 16 12 13 14 15 16 12 13 14 15 16 Total Purchase Volume Billions of Dollars $5.7 $1,757 $5.3 $4.4 $1,292 $918 $3.0 $642 $2.1 $431 1000 800 600 400 200 12 13 12 14 13 15 14 16 15 16 0 No. 5 HSA provider in the U.S. in total number of accounts. 2000 Source: 2016 Devenir Year-end HSA Market Statistics & Trends Report 1500 1000 +36.6% 500 Growth in assets and deposits compared to 2015. 0 6 5 2000 We kept our momentum throughout 2016, ending the year with 22 percent growth in health savings accounts, and we will continue to provide exceptional services to our clients and accountholders. 1000 1500 3 4 2 1 500 0 BEGONYA KLUMB Chief Executive Officer, Healthcare Services 0 19 Health Savings Accounts Thousands of Accounts 982 982 805 805 621 621 438 438 315 315 12 13 14 12 15 13 16 14 15 16 $1,765M $5.3B $5.7B $4.4B $1,292M $3.0B $918M $2.1B $642M $431M 12 12 13 13 14 14 15 15 16 16 1000 1000 800 600 400 200 0 800 600 400 200 0 2000 1500 1000 500 0 6 5 4 3 2 1 0 ““The Fund Services team excels at adapting in an ever-changing market environment. This agility positions our operation to take advantage of opportunities and meet client needs now and in the future. TONY FISCHER President, UMB Fund Services In 2016, market challenges persisted for the asset management industry, yet UMB Fund Services was able to deliver year-over-year revenue growth. Earnings were a result of performance paired with efficiency initiatives. Moving forward, continuous process improvements are part of our DNA, and we’ve set the foundation for the next stage of our growth. 20 ““Asset Servicing UMB Fund Services offers a broad array of services for mutual funds and alternative investments—as well as turnkey solutions to help our clients bring new products to market. Total Assets Under Administration Includes fund clients receiving custody services from UMB Bank, n.a. $191.0B $198.3B $185.6B $188.7B $156.0B 12 13 14 15 16 +11.5% The number of alternative investment funds serviced increased from 610 in 2015 to 680 in 2016. No. 1 Transfer agent for U.S. closed- end mutual funds, based on number of accounts. Source: 2016 Mutual Fund Service Guide +25.7% The number of private equity funds serviced increased by 25.7%, from 257 funds in 2015 to 323 in 2016. Top Ten - Transfer Agent - Fund Accountant Source: 2016 Mutual Fund Service Guide Top Workplace for the 7th straight year Source: Milwaukee Journal Sentinel Investment Managers Series Trust Assets Billions of Dollars $17.0 $12.8 $11.9 $6.4 $3.4 12 13 14 15 16 Assets under administration in the Investment Managers Series Trusts grew to $17 billion in 2016, a 33% increase over 2015. We helped clients launch 12 new mutual funds through the Trusts. 21 20 15 10 5 0 Our firm delivered strong results in 2016 despite significant market headwinds starting the year. As we continue to focus on implementing our investment processes, I’m confident we can deliver value for our clients. ANDREW ISEMAN Chief Executive Officer, Scout Investments Important Disclosures Risk considerations: Mid-cap stocks may temporarily fall out of favor or perform poorly relative to other types of investments. While stocks of mid-cap companies may be slightly less volatile than those of small-cap companies, they still involve substantial risk. Real Estate Investment Trusts (REITS) may be affected by economic conditions including credit risk, interest rate risk and other factors that affect property values, rents or occupancies of real estate. Foreign investments present additional risks due to currency fluctuations, economic and political factors, government regulations, differences in accounting standards and other factors. Investments in emerging markets involve even greater risks. Groups of stocks, such as value and growth, go in and out of favor, which may cause certain funds to underperform other equity funds. The Fund may, at times, experience higher-than-average portfolio turnover which may generate significant taxable gains and increased trading expenses which in turn may lower the Fund’s return. Diversification does not guarantee a profit or guarantee against a loss. "Scout" and "Scout" design are registered service marks of UMB Financial Corporation. The Scout Funds are distributed by UMB Distribution Services, LLC, 235 West Galena Street, Milwaukee, WI, 53212 an affiliate of UMB Financial Corporation, and managed by Scout Investments, Inc., a subsidiary of UMB Financial Corporation. Scout, Scout Investments - Reg U.S. Tm. Off. NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE 22 ““ Scout Investments provides equity and fixed income strategies for institutional clients, investment professionals and individual investors. Active investment management expertise is at the core of our success. Total Assets Under Management Billions of Dollars Fixed Income Mutual Funds Fixed Income Institutional & Other Equity Institutional & Other Equity Mutual Funds $31.2B $2.8B $12.6B $3.2B $12.6B $23.5B $0.8B $11.4B $0.9B $10.4B 12 13 $31.2B $2.9B $18.1B $2.4B $7.8B 14 $27.2B $2.4B $27.3B $2.7B $18.9B $19.9B $2.0B $3.9B 15 $1.9B $2.8B 16 Scout Equity Strategies - International Equity - International Equity ADR - Emerging Markets Equity - Global Equity - Equity Opportunity - Mid Cap Equity - Small Cap Equity Reams Fixed Income Strategies - Ultra Low Duration - Low Duration - Intermediate - Core - Core Plus - Long Duration - Unconstrained Client Assets by Type 23% Sub-Advisory 20% Mutual Funds 19% Non-Profit / Other 15% Public 15% Corporate 6% Endowment & Foundations 2% Taft-Hartley $27.3B Assets Under Management Total Scout Investments assets under management at the end of 2016. UMBMX Ranks #1 The Scout Mid Cap Fund ranked #1 for the 10-year period ending December 31, 2016. For the 10-year time period ending December 31, 2016, there were 218 funds in the Lipper Mid Cap Core Classification and the Scout Mid Cap Fund was ranked number one in the group. Lipper rankings for total return reflect the fund's historical total return performance for 10 years relative to peers in the Lipper Mid Core category as of December 31, 2016. Lipper rankings are not intended to predict future results and Lipper does not guarantee the accuracy of this information. Lipper Copyright 2016, Reuters, All Rights Reserved. The Fund may have experienced negative performance during one or more of the time periods represented by the Lipper ranking shown. Past performance is no guarantee of future results. The Fund’s Prospectus or Summary Prospectus, which is available by calling 800.996.2862 or by visiting www.scoutinv.com, includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. See important disclosures page 22. 23 We delivered 10.6 percent revenue growth in 2016 while maintaining our commitment to efficiency —both of which have improved our operating leverage. RAM SHANKAR Chief Financial Officer, UMB Financial Corporation In 2016, we made progress in optimizing our balance sheet by shifting other earning assets into loans, which resulted in improved net interest margin as well as effectively managed capital to enable profitable growth. This sets the company up well for delivering on the runway potential ahead of us in 2017. 24 ““SELECTED FINANCIAL HIGHLIGHTS Dividends Paid Per Share Dividends Paid Per Share Dollars Dollars $.91 $.91 $.87 $.87 $.83 $.83 Return On Average Assets Percentage Return On Average Assets Percentage Return On Average Equity Percentage Return On Average Equity Percentage Diluted Earnings Per Share Diluted Earnings Per Share Dollars Dollars .92% .89% .92% .89% 10.0% 9.8% 10.0% 9.8% $3.20 $3.20 $3.22 $3.22 $3.04 $3.04 $.99 $.99 $.95 $.95 .81% .81% .75% .75% .65% .65% 7.5% 8.0% 7.5% 8.0% $2.65 $2.65 $2.44 $2.44 6.4% 6.4% 12 13 14 12 15 13 16 14 15 16 12 13 14 12 15 13 16 14 15 16 12 13 14 12 15 13 16 14 15 16 12 13 14 12 15 13 16 14 15 16 Return On Average Assets Return On Average Assets Percentage Percentage Return On Average Equity Percentage Return On Average Equity Percentage Diluted Earnings Per Share Diluted Earnings Per Share Dollars Dollars Dividends Paid Per Share Dividends Paid Per Share Dollars Dollars 1.0 1.0 0.8 0.8 10 8 10 8 .92% .89% .92% .89% 10.0% 9.8% 10.0% 9.8% 0.6 $3.20 0.6 $3.20 $3.22 $3.22 6 6 $.99 $.99 $.95 $.95 $3.04 $3.04 .81% .81% .75% .75% .65% .65% 7.5% 8.0% 7.5% 8.0% 0.4 $2.65 0.4 $2.44 $2.65 $2.44 6.4% 6.4% 0.2 0.2 0.0 0.0 $.91 $.91 $.87 $.87 $.83 4 $.83 4 2 0 2 0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 1.0 1.0 0.8 0.8 0.6 0.6 0.4 0.4 0.2 0.2 0.0 0.0 12 13 14 12 15 13 16 14 15 16 12 13 14 12 15 13 16 14 15 16 12 13 14 12 15 13 16 14 15 16 12 13 14 12 15 13 16 14 15 16 1.0 1.0 0.8 25 0.8 1.0 1.0 10 10 0.8 0.8 8 6 4 2 0 8 6 4 2 0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 0.6 0.6 0.6 0.6 0.4 0.4 0.4 0.4 0.2 0.2 0.2 0.2 0.0 0.0 0.0 0.0 SELECTED FINANCIAL HIGHLIGHTS Five-Year Total Return UMBF vs. SNL US Banks Index and S&P 500 $ 250 $ 200 $ 150 $100 11 $207 $175 $161 $185 $179 $154 13 14 $210 $177 $134 15 $135 $120 $116 12 $266 $225 $199 16 UMBF SNL US BANKS S&P 500 This summarizes the cumulative return experienced by UMBF shareholders for the years 2012 through 2016, compared to the S&P 500 Stock Index and the SNL US Banks Index. In all cases, the return assumes a reinvestment of dividends. Source: SNL Financial UMBF Total Assets Under Management Billions of Dollars UMBF Total Assets Under Management Billions of Dollars $41.4 $42.8 $40.0 $41.4 $40.9 $42.8 $40.9 $40.0 $32.3 $32.3 300 200 Risk-Based Capital Ratios Risk-Based Capital Ratios 12.8% 12.8% 11.8% 11.8% 11.8% 11.8% 250 150 200 100 150 100 50 13 16 12 13 14 15 12 50 40 30 20 10 50 40 30 20 10 9.1% 9.1% 8.0% 8.0% 6.0% 6.0% 4.5% 4.5% 4.0% 4.0% 14 15 16 Common Equity Tier 1 Capital Tier 1 Common Capital Equity Tier 1 Capital Total Capital Tier 1 Capital Tier 1 Leverage Total Capital Tier 1 Leverage Regulatory Minimum UMB Regulatory Minimum UMB 26 15 12 9 6 3 15 12 9 6 3 FIVE-YEAR FINANCIAL SUMMARY Dollars In Thousands Except Per Share Data Earnings Interest income Interest expense Net interest income Provision for loan losses Noninterest income Noninterest expense Net income Average Balances Assets Loans, net of unearned interest Securities Interest-bearing due from banks Deposits Long-term debt Shareholders’ equity Year-End Balances Assets Loans, net of unearned interest Securities Interest-bearing due from banks Deposits Long-term debt Shareholders’ equity Nonperforming loans Allowance for loan losses $ 2016 523,031 27,708 495,323 32,500 476,075 731,894 158,801 $ 19,592,685 9,992,874 7,665,012 410,163 15,338,741 81,905 1,983,749 $ 20,682,532 10,545,662 7,690,108 715,823 16,570,614 76,772 1,962,384 70,259 91,649 2015 2014 $ 430,681 18,614 412,067 15,500 466,454 703,736 116,073 $ 363,871 13,816 350,055 17,000 498,688 665,680 120,655 $ 17,786,442 8,425,107 7,330,246 664,752 14,078,290 57,321 1,805,856 $ 15,898,983 6,975,338 7,053,837 843,134 12,691,273 6,059 1,599,765 $ 19,094,245 9,431,350 7,568,870 522,877 15,092,752 86,070 1,893,694 61,206 81,143 $ 17,500,960 7,466,418 7,285,667 1,539,386 13,616,859 8,810 1,643,758 27,382 76,140 $ 2013 348,341 15,072 333,269 17,500 491,833 624,178 133,965 $ 15,030,762 6,221,318 7,034,542 663,818 11,930,318 4,748 1,337,107 $ 16,911,852 6,521,869 7,051,127 2,093,467 13,640,766 5,055 1,506,065 30,706 74,751 2012 $ 339,685 19,629 320,056 17,500 458,122 590,454 122,717 $ 13,389,192 5,251,278 6,528,523 547,817 10,521,658 5,879 1,258,284 $ 14,927,196 5,690,626 7,134,316 720,500 11,653,365 5,879 1,279,345 28,103 71,426 Per Share Data Earnings - basic Earnings - diluted Cash dividends Dividend payout ratio Book value Market price High Low Close Ratios $ $ $ $ $ $ 3.25 3.22 0.99 30.46 % 39.51 81.11 39.55 77.12 $ $ $ 2.46 2.44 0.95 38.62 % 38.34 58.84 45.14 46.55 $ $ $ 2.69 2.65 0.91 33.83 % 36.10 68.27 51.87 56.89 $ $ $ 3.25 3.20 0.87 26.77 % 33.30 65.44 43.27 64.28 3.07 3.04 0.83 27.04 % 31.71 52.61 37.68 43.82 Return on average assets Return on average equity As a % of loans: Allowance for loan losses Nonperforming loans Risk-based capital: Common Equity Tier 1* Tier 1 Total Average equity to average assets 0.81 % 8.01 0.65 % 6.43 0.75 % 7.54 0.89 % 10.02 0.92 % 9.75 0.87 0.67 11.80 11.80 12.87 10.12 0.86 0.65 11.74 11.86 12.80 10.15 1.02 0.37 - 13.29 14.04 8.72 1.15 0.47 - 13.61 14.43 8.90 1.26 0.49 - 11.05 11.92 9.40 Please refer to 10-K filing for additional information. *Common Equity Tier 1 ratio required beginning January 1, 2015 upon the company's adoption of Basel III. 27 CONSOLIDATED BALANCE SHEETS Dollars in Thousands Except Per Share and Share Data December 31, December 31, Assets Loans Allowance for loan losses Net loans Loans held for sale Investment securities: Available for sale Held to maturity (market value of $1,106,027 and $691,379 respectively) Trading securities Federal Reserve Bank stock and other Total investment securities Federal funds sold and securities purchased under agreements to resell Interest-bearing due from banks Cash and due from banks Bank premises and equipment, net Accrued income Goodwill Other intangibles Other assets Total assets Liabilities Deposits: Noninterest-bearing demand Interest-bearing demand and savings Time deposits under $250,000 Time deposits of $250,000 or more Total deposits Federal funds purchased and repurchase agreements Short-term debt Long-term debt Accrued expenses and taxes Other liabilities Total liabilities Shareholders’ Equity Common stock, $1.00 par value; 80,000,000 shares authorized, 55,056,730 shares issued and 49,673,056 and 49,396,366 shares outstanding, respectively Capital surplus Retained earnings Accumulated other comprehensive income Treasury stock, 5,383,674 and 5,660,364 shares, at cost, respectively Total shareholders' equity Noninterest-bearing demand Please refer to 10-K filing for additional information. 2016 2015 $ 10,540,383 (91,649) $ 10,448,734 5,279 6,466,334 1,115,932 39,536 68,306 7,690,108 324,327 715,823 422,117 289,007 99,045 228,396 34,491 425,205 9,430,761 (81,143) 9,349,618 589 6,806,949 667,106 29,617 65,198 7,568,870 173,627 522,877 458,217 281,471 90,127 228,346 46,782 373,721 $ 20,682,532 $ 19,094,245 $ $ 6,654,584 8,780,309 613,589 522,132 6,306,895 7,529,972 771,973 483,912 16,570,614 15,092,752 1,856,937 - 76,772 172,967 42,858 1,818,062 5,009 86,070 161,245 37,413 18,720,148 17,200,551 55,057 1,033,419 1,142,887 (57,542) (211,437) 1,962,384 55,057 1,019,889 1,033,990 (3,718) (211,524) 1,893,694 $ 20,682,532 $ 19,094,245 28 CONSOLIDATED STATEMENT OF INCOME Dollars in Thousands Except Per Share and Share Data Years Ended December 31, Interest Income Loans Securities: Taxable interest Tax-exempt interest Total securities income Federal funds and resell agreements Interest-bearing due from banks Trading securities Total interest income Interest Expense Deposits Federal funds and repurchase agreements Other Total interest expense Net interest income Provision for loan losses Net interest income after provision for loan losses Noninterest Income Trust and securities processing Trading and investment banking Service charges on deposits Insurance fees and commissions Brokerage fees Bankcard fees Gains on sales of securities available for sale Equity earnings (loss) on alternative investments Other Total noninterest income Noninterest Expense Salaries and employee benefits Occupancy, net Equipment Supplies, postage and telephone Marketing and business development Processing fees Legal and consulting Bankcard Amortization of other intangible assets Regulatory fees Contingency Reserve Other Total noninterest expense Income before income taxes Income tax expense Net Income Per Share Data (except shares outstanding) Net income - basic Net income - diluted Dividends Weighted average shares outstanding - basic Please refer to 10-K filing for additional information. 2016 2015 2014 $ 386,274 $ 308,325 $ 245,278 73,560 57,516 131,076 2,708 2,341 632 75,327 43,598 118,925 697 2,356 378 76,204 39,209 115,413 259 2,525 396 523,031 430,681 363,871 17,936 6,524 3,248 27,708 495,323 32,500 462,823 239,879 21,422 86,662 4,188 17,833 68,749 8,509 2,695 26,138 476,075 432,754 44,926 67,271 19,080 22,342 45,235 21,242 20,757 12,291 14,178 - 31,818 731,894 207,004 48,203 158,801 3.25 3.22 0.99 48,828,313 14,269 1,785 2,560 18,614 412,067 15,500 396,567 262,056 20,218 86,460 2,530 11,753 69,211 10,402 (12,188) 16,012 466,454 406,472 43,861 63,533 18,579 23,730 51,328 26,390 20,288 12,090 12,125 - 25,340 703,736 159,285 43,212 116,073 2.46 2.44 .95 47,126,252 $ $ 12,242 1,616 (42) 13,816 350,055 17,000 333,055 288,054 19,398 85,299 3,011 10,761 67,250 4,127 3,975 16,813 498,688 358,569 40,197 53,609 20,411 24,148 56,049 20,407 19,594 12,193 10,445 20,272 29,786 665,680 166,063 45,408 120,655 2.69 2.65 .91 44,844,578 $ $ $ $ 29 UMB FINANCIAL CORPORATION BOARD OF DIRECTORS Robin C. Beery 2,4,5 Consultant, Investment Industry Executive Nancy K. Buese 2,5,6 Executive Vice President, Chief Financial Officer, Newmont Mining Corporation Terrence P. Dunn 3 Chairman and Director, TechAccel, LCC K.C. Gallagher 2,5 Chairman, Gallagher Industries, LLC; Chief Executive Officer, Little Pub Holdings, LLC Gregory M. Graves 3,4 Chairman, Chief Executive Officer and President, Burns and McDonnell Engineering Company, Inc. Michael D. Hagedorn 1 President and Chief Executive Officer, UMB Bank, n.a.; Vice Chairman, UMB Financial Corporation Alexander C. Kemper Chairman and Chief Executive Officer, C2FO Mariner Kemper 6 Chairman, UMB Bank, n.a.; Chairman, President and Chief Executive Officer, UMB Financial Corporation Timothy R. Murphy 3,4 Chairman and Chief Executive Officer, Murphy-Hoffman Company Kris A. Robbins 2,5,6 Principal, KARobbins, LLC L. Joshua Sosland 3,4 President, Sosland Companies, Inc. Paul Uhlmann III 3,4 President and Chief Executive Officer, The Uhlmann Company Leroy J. Williams, Jr. 2,4 Chief Executive Officer, CyberTek IQ Thomas J. Wood III 1 Investor To view a full list of UMB’s advisory boards, visit UMB.com/AdvisoryBoards 1Advisory Director 2Risk Committee 3Corporate Governance & Nominating Committee 4Compensation Committee 5Corporate Audit Committee 6 Pricing Committee 30 UMB FINANCIAL COMMUNITY INVOLVEMENT UMB Financial Corporation’s community involvement philosophy guides how the company and associates invest their time and talent, and helps determine where sponsorships and donations are made. More than any one value, UMB is dedicated to the prosperity of every community it serves. We continuously contribute to the vibrancy and success of these communities by supporting: • Agriculture • Financial Education • Arts • Self Sufficiency 1,112 $231K UMB associates volunteered their time in 2016. Estimated economic value of UMB associates’ volunteer hours in 2016. Source: Independent Sector 9,809 Hours of qualified volunteer time off in 2016. 450+ Organizations where UMB associates volunteered. 1,528 Tons of recycled paper in 2016, saving an estimated 36,665 trees, 34,913,306 gallons of water, 2,935,950 pounds of solid waste, 49,736 million BTUs of energy, and 8,557,021 pounds of greenhouse gases. The paper, paper mill and printer for this publication are certified to meet the strict standards of the Forest Stewardship Council (FSC). Printed on recycled paper. 31 CORPORATE INFORMATION Notice of Annual Meeting Tuesday, April 25, 2017 UMB Financial Corporation 1010 Grand Boulevard Kansas City, MO 64106 10-K Request We will furnish, without charge, a copy of our 2016 Report to the SEC (Form 10-K) to any shareholder upon written request. Please specify Form 10-K when requesting. Transfer Agent Computershare Trust Company, n.a. P.O. Box 43078 Providence, RI 02940-3078 800.884.4225 The report and 10-K filing will also be available online at UMBFinancial.com. UMB Financial Corporation 1010 Grand Boulevard P.O. Box 419226 Kansas City, MO 64141-6226 UMBFinancial.com Stock Quotation Symbol UMBF NASDAQ OMX Investor Relations Kay Gregory Vice President, Investor Relations Financial Information Ram Shankar Chief Financial Officer, UMB Financial Corporation To contact us, please call 816.860.7000 or 800.821.2171 For other inquiries Marketing Communication Marketing@UMB.com Cautionary Notice About Forward-Looking Statements This document contains 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, 2016, 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 Securities and Exchange Commission (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. 32 A FOCUS ON QUALITY We believe quality prevails over quantity. Our time-tested approach will always be anchored in quality, and we will never chase short-term earnings or growth at the expense of our future. UMB Financial Corporation (NASDAQ: UMBF) Credit Ratings as of 02/17/16 Credit Ratings Long-term Issuer Short-term / Commercial Paper Bank Individual Bank Support Credit Ratings (Subsidiaries) UMB Bank, National Association Certificate of Deposit Bank Individual Bank Support S&P A- / Stable Fitch A / Stable A-2 - - S&P - - - F1 a+ 5 Fitch AA- a+ 5 g r e b n e s o R d d o T : y h p a r g o t o h P t i a r t r o P | . c n I , s i s e n e G : n g i s e D d n a t p e c n o C | n o i t a r o p r o C l i i a c n a n F B M U 7 1 0 2 t h g i r y p o C © “UMB”, “COUNT ON MORE”, “SCOUT”, “SCOUT INVESTMENTS”, the UMB design logo, the UMB Count on More design logo, and the Scout design logo – Reg. U.S. Pat. & Tm. Off. These names and design logos are registered trademarks of UMB Financial Corporation. Count on more. UMBFINANCIAL.COM 

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