Fourth Quarter 2022 Financial Highlights

GAAP net income of $100.2 million, or $2.06 per diluted share.
Average loan balances increased $3.6 billion, or 21.6%, compared to the fourth quarter of 2021.
Average loans increased 21.0% on a linked-quarter, annualized basis.
Average deposits grew 21.2% on a linked-quarter, annualized basis.
Net interest income increased 5.0% from the linked quarter.
Noninterest income increased 5.7% as compared to the fourth quarter of 2021, equal to 33.9% of total revenue.
Net interest margin expanded seven basis points from the linked quarter.
Credit quality remained strong, with net charge-offs of just 0.04% of average loans.

UMB Financial Corporation (NASDAQ:UMBF), a financial services company, announced net income for the fourth quarter of 2022 of $100.2 million, or $2.06 per diluted share, compared to $88.0 million, or $1.81 per diluted share, in the third quarter of 2022 (linked quarter) and $78.5 million, or $1.61 per diluted share, in the fourth quarter of 2021.

Net operating income, a non-GAAP financial measure reconciled later in this release to net income, the nearest comparable GAAP measure, was $101.1 million, or $2.07 per diluted share, for the fourth quarter of 2022, compared to $88.3 million, or $1.82 per diluted share, for the linked quarter and $78.9 million, or $1.62 per diluted share, for the fourth quarter of 2021. 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 $134.1 million, or $2.75 per diluted share, for the fourth quarter of 2022, compared to $131.2 million, or $2.70 per diluted share, for the linked quarter, and $107.4 million, or $2.20 per diluted share, for the fourth quarter of 2021. These operating PTPP results represent increases of 2.2% on a linked-quarter basis and 24.8%, compared to the fourth quarter of 2021.

"As we enter the 110th year of business, our strong balance sheet and differentiated business mix position us well to deliver solid returns across all economic cycles, driven by our basic tenet of providing the Unparalleled Customer Experience to all our key constituents," said Mariner Kemper, chairman, president and chief executive officer. "Our fourth quarter results capped off another year of record earnings, facilitated by strong balance sheet growth, stable credit metrics and contributions from our differentiated fee income sources. Revenue increased 14.4% over the prior year to $1.5 billion, driven by a 13.2% increase in average loans, 8.3% increase in average deposits, and an 18.6% percent increase in noninterest income. In 2022, we generated actual loan growth of nearly $4 billion, or more than three times the $1.1 billion we added in the prior calendar year. Our asset quality metrics remained solid as reflected in net loan charge-off rate of 21 basis points for the year. Nonperforming assets comprised a modest five basis points of total assets. We've long focused on operating leverage, and for the full year, we generated positive leverage of 6.7%."

Fourth Quarter 2022 earnings discussion

Summary of quarterly financial results	UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
	Q4			Q3			Q4
	2022			2022			2021
Net income (GAAP)	$	100,173		$	87,990		$	78,496
Earnings per share (diluted)		2.06			1.81			1.61

Operating pre-tax, pre-provision income (Non-GAAP)		134,054			131,166			107,415
Operating pre-tax, pre-provision earnings per share (diluted)		2.75			2.70			2.20

Operating pre-tax, pre-provision income - FTE (Non-GAAP)		140,717			137,620			113,898
Operating pre-tax, pre-provision earnings per share - FTE (diluted)		2.89			2.83			2.33

Net operating income (Non-GAAP)		101,092			88,259			78,921
Operating earnings per share (diluted)		2.07			1.82			1.62

GAAP
Return on average assets		1.06	%		0.96	%		0.82	%
Return on average equity		15.16			12.90			9.91
Efficiency ratio		63.72			63.58			67.78

Non-GAAP
Operating return on average assets		1.07	%		0.96	%		0.82	%
Operating return on average equity		15.30			12.94			9.97
Operating efficiency ratio		63.39			63.49			67.61

Summary of revenue	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q4			Q3			Q4			CQ vs.			CQ vs.
	2022			2022			2021			LQ			PY
Net interest income	$	245,166		$	233,485		$	210,570		$	11,681		$	34,596
Noninterest income:
Trust and securities processing		59,207			59,586			58,515			(379	)		692
Trading and investment banking		5,251			5,387			6,977			(136	)		(1,726	)
Service charges on deposit accounts		19,758			19,932			21,607			(174	)		(1,849	)
Insurance fees and commissions		459			375			359			84			100
Brokerage fees		13,332			13,840			3,346			(508	)		9,986
Bankcard fees		19,597			19,379			16,642			218			2,955
Investment securities (losses) gains, net		(409	)		(1,345	)		1,448			936			(1,857	)
Other		8,302			11,569			9,888			(3,267	)		(1,586	)
Total noninterest income	$	125,497		$	128,723		$	118,782		$	(3,226	)	$	6,715
Total revenue	$	370,663		$	362,208		$	329,352		$	8,455		$	41,311
Net interest income (FTE)	$	251,829		$	239,939		$	217,053
Net interest margin (FTE)		2.83	%		2.76	%		2.37	%
Total noninterest income as a % of total revenue		33.9			35.5			36.1

Net interest income

Fourth quarter 2022 net interest income totaled $245.2 million, an increase of $11.7 million, or 5.0% from the linked quarter, driven by an increase of $1.0 billion in average loans and the impact from higher short-term and long-term interest rates.
Average earning assets increased $831.6 million, or 2.4% from the linked quarter, largely driven by the increase in average loans noted above, an increase of $502.8 million in interest-bearing due from banks, partially offset by a decrease of $488.8 million in average securities.
Average interest-bearing liabilities increased $987.5 million, or 4.8% from the linked quarter, primarily driven by an increase of $1.5 billion in interest-bearing deposits, partially offset by a decrease of $631.0 million in federal funds purchased and repurchase agreements.
Net interest margin for the fourth quarter was 2.83%, an increase of seven basis points from the linked quarter, driven by benefits of higher short-term interest rates, loan fees, favorable earning asset mix changes, and the benefit of free funds, partially offset by increased cost of interest-bearing liabilities. Average loan yields increased 89 basis points while earning asset yields increased 67 basis points from the linked quarter. The cost of interest-bearing liabilities increased 94 basis points to 2.22%.
On a year-over-year basis, net interest income increased $34.6 million, or 16.4%, driven by a $3.6 billion, or 21.6% increase in average loans, coupled with a $402.7 million, or 3.1% increase in average securities. These increases were driven by organic loan growth and a reduction in excess liquidity.
Average earning assets decreased $1.0 billion, or 2.8%, largely driven by a decrease of $4.6 billion in interest-bearing due from banks, partially offset by the increases in average loans and securities noted above.
Average deposits increased 5.3% on a linked-quarter basis and decreased 0.8% compared to the fourth quarter of 2021. Average noninterest-bearing demand deposit balances increased 0.5% on a linked-quarter basis and decreased 5.1% compared to the fourth quarter of 2021. Demand deposit balances comprised 39.7% of total deposits, compared to 41.6% in the linked quarter and 41.5% in the fourth quarter of 2021.

Noninterest income

Fourth quarter 2022 noninterest income decreased $3.2 million, or 2.5%, on a linked-quarter basis, largely due to:
- Decreases of $2.3 million in company-owned life insurance income and $0.9 million in derivative income, both recorded in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below.
- A decrease of $0.5 million in brokerage income, largely driven by a decrease in money market income.
- These decreases were partially offset by an increase of $0.9 million in investment securities gains.
Compared to the prior year, noninterest income in the fourth quarter of 2022 increased $6.7 million, or 5.7%, primarily driven by:
- An increase of $10.0 million in brokerage income, largely driven by increases in 12b-1 fees and money market income.
- An increase of $3.0 million in bankcard income, driven by increased interchange income and reduced rewards expense.
- An increase of $1.0 million in company-owned life insurance income, recorded in other income. The increase in company-owned life insurance is offset by a proportionate increase in deferred compensation expense as noted below.
- These increases were partially offset by the following decreases:
  - A decrease of $1.9 million in investment securities gains, largely driven by $2.7 million in gains on sales of available-for-sale securities in the prior year, offset by an increase of $0.9 million in the valuation of the company's equity investments.
  - A decrease of $1.8 million in service charges on deposits primarily due to reduced corporate service charge income and decreased healthcare services income related to customer transfer and conversion fees.
  - Decreases of $2.0 million in derivative income, recorded in other income, and $1.7 million in trading and investment banking due to decreased trading volume.

Noninterest expense

Summary of noninterest expense	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q4		Q3		Q4		CQ vs.			CQ vs.
	2022		2022		2021		LQ			PY
Salaries and employee benefits	$	135,940	$	136,467	$	131,360	$	(527	)	$	4,580
Occupancy, net		12,409		12,231		10,907		178			1,502
Equipment		18,969		18,811		19,886		158			(917	)
Supplies and services		3,697		3,139		4,646		558			(949	)
Marketing and business development		8,788		6,671		6,528		2,117			2,260
Processing fees		23,545		20,901		19,083		2,644			4,462
Legal and consulting		10,664		10,255		10,858		409			(194	)
Bankcard		7,369		6,551		4,865		818			2,504
Amortization of other intangible assets		1,649		1,092		1,110		557			539
Regulatory fees		4,232		4,200		3,393		32			839
Other		10,556		11,078		9,847		(522	)		709
Total noninterest expense	$	237,818	$	231,396	$	222,483	$	6,422		$	15,335

Noninterest expense for the fourth quarter of 2022 was $237.8 million, an increase of $6.4 million, or 2.8%, from the linked quarter and an increase of $15.3 million, or 6.9%, from the fourth quarter of 2021.
The linked-quarter increase in noninterest expense was driven by:
- Increases of $2.6 million in processing fees and $2.1 million in marketing and business development expense due to the ongoing modernization of the company's core systems and timing of multiple projects, respectively. The increase in marketing and business development expense was also partially driven by an increase in advertising for various projects and an increase in travel and entertainment expense.
- Increases of $0.8 million, $0.6 million, and $0.6 million in bankcard expense, supplies expense, and intangible amortization expense, respectively. The increase in amortization expense is related to the acquisition of the healthcare savings account business from Old National Bank, completed in the fourth quarter of 2022.
- These increases were partially offset by a decrease of $0.5 million in salaries and employee benefits expense. This decrease was driven by a decrease of $2.7 million in employee benefits expense, partially offset by an increase of $2.2 million in salaries and bonus expense. The decrease in employee benefits expense was driven by a $1.5 million decrease in deferred compensation expense and a $1.0 million decrease in payroll taxes, insurance, and 401(k) expense as employee maximums were reached during the quarter. This decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.
The year-over-year increase in noninterest expense was driven by:
- An increase of $4.6 million in salaries and employee benefits expense, driven primarily by increases of $7.7 million in salaries and wage expense and $2.3 million in employee benefits expense, primarily due to an increase of $1.1 million in payroll taxes, insurance, and 401(k) expense, and an increase of $0.7 million in deferred compensation expense. These increases were partially offset by a decrease of $5.4 million in bonus and commission expense. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
- Increases of $4.5 million and $2.3 million in processing fees and marketing and business development expense, respectively, due to the ongoing modernization of the company's core systems and timing of multiple projects, respectively. The increase in marketing and business development expense was also partially driven by an increase in advertising for various projects and an increase in travel and entertainment expense.
- Increases of $2.5 million and $1.5 million in bankcard expense and occupancy expense, respectively.

Full year 2022 earnings discussion

Net income for the year ended December 31, 2022 was $431.7 million, or $8.86 per diluted share, compared to $353.0 million, or $7.24 per diluted share in 2021. Net operating income, a non-GAAP financial measure reconciled to net income, the nearest comparable GAAP measure, later in this release, was $433.0 million, or $8.88 per diluted share, compared to $354.4 million, or $7.27 per diluted share in 2021. These results represent increases of 22.3% and 22.2%, respectively. 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 $571.7 million, or $11.73 per diluted share, compared to $450.9 million, or $9.26 per diluted share, for 2021. These results represent an increase of 26.8% as compared to 2021.

Summary of year-to-date financial results	UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)	December			December
	YTD			YTD
	2022			2021
Net income (GAAP)	$	431,682		$	353,018
Earnings per share (diluted)		8.86			7.24

Operating pre-tax, pre-provision income (Non-GAAP)		571,671			450,896
Operating pre-tax, pre-provision earnings per share (diluted)		11.73			9.26

Operating pre-tax, pre-provision income - FTE (Non-GAAP)		597,465			477,230
Operating pre-tax, pre-provision earnings per share - FTE (diluted)		12.26			9.79

Net operating income (Non-GAAP)		433,020			354,446
Operating earnings per share (diluted)		8.88			7.27

GAAP
Return on average assets		1.15	%		1.00	%
Return on average equity		15.83			11.43
Efficiency ratio		60.84			65.02

Non-GAAP
Operating return on average assets		1.15	%		1.00	%
Operating return on average equity		15.88			11.47
Operating efficiency ratio		60.72			64.87

Net interest income increased $98.3 million, or 12.1%, year-over-year due to a $2.1 billion increase in earning assets and the impact from increased short-term and long-term interest rates. The increase in earning assets was primarily driven by a $2.2 billion, or 13.2%, increase in average loans, and an increase of $1.8 billion, or 15.7% in average securities. This growth was partially offset by a decrease of $1.7 billion in interest-bearing due from banks. Average interest-bearing liabilities increased $583.1 million, while noninterest-bearing demand deposits increased $2.0 billion, or 17.9%. The yield on earning assets increased 62 basis points, while the cost of interest-bearing liabilities increased 84 basis points. Net interest margin for 2022 was 2.63%, an increase of 13 basis points from 2021.
Full-year noninterest income increased $87.1 million, or 18.6%, due to:
- An increase of $53.4 million in investment securities gains, largely driven by the gain on the sale of the company's Visa Inc. Class B common shares during the second quarter of 2022.
- An increase of $30.8 million in brokerage fees, primarily driven by higher 12b-1 and money market income.
- An increase of $13.1 million in trust and securities processing, due to increases of $12.9 million and $6.5 million in fund services income and corporate trust income, respectively, partially offset by a decrease of $6.3 million in trust income.
- These increases were partially offset by a decrease of $10.1 million in company-owned life insurance income, recorded in other income. The decrease in company-owned life insurance is offset by a proportionate decrease in deferred compensation expense as noted below.
Full-year noninterest expense increased $64.5 million, or 7.7%, primarily due to:
- An increase of $20.0 million in salaries and employee benefits expense, driven by an increase of $21.8 million in salaries and bonus expense, partially offset by a decrease of $1.9 million in employee benefits expense. The increase in salaries and bonus expense was driven by higher salaries and improved company performance. The decrease in employee benefits expense was due to a decrease of $9.5 million in deferred compensation expense, partially offset by an increase of $5.0 million in payroll taxes, insurance, and 401(k) expense. This decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.
- An increase of $14.7 million in processing fees due to the ongoing modernization of the company's core systems and timing of multiple projects.
- Increases of $7.2 million and $6.7 million in marketing and business development and legal and consulting expense, respectively, due to the timing of multiple projects. The increase in marketing and business development expense was also partially driven by an increase in advertising for various projects and an increase in travel and entertainment expense.
- An increase of $7.2 million in bankcard expense primarily due to higher processing expense and bankcard fraud losses.
- Increases of $6.1 million in operational losses and $2.4 million in charitable contributions, both recorded in other expense.

Income taxes

The company's effective tax rate was 18.9% for the year ended December 31, 2022, compared to 17.7% for the same period in 2021. The increase in the effective rate in 2022 is primarily attributable to a smaller portion of income being earned from tax-exempt municipal securities.

Balance sheet

Average total assets for the fourth quarter of 2022 were $37.3 billion compared to $36.3 billion for the linked quarter and $38.1 billion for the same period in 2021.

Summary of average loans and leases - QTD Average					UMB Financial Corporation
(unaudited, dollars in thousands)
	Q4		Q3		Q4		CQ vs.			CQ vs.
	2022		2022		2021		LQ			PY
Commercial and industrial	$	8,891,356	$	8,417,174	$	6,994,935	$	474,182		$	1,896,421
Specialty lending		559,200		559,797		484,552		(597	)		74,648
Commercial real estate		7,323,877		6,892,484		6,218,138		431,393			1,105,739
Consumer real estate		2,678,771		2,574,926		2,272,498		103,845			406,273
Consumer		145,811		142,348		107,841		3,463			37,970
Credit cards		457,043		438,235		414,267		18,808			42,776
Leases and other		238,603		259,298		200,417		(20,695	)		38,186
Total loans	$	20,294,661	$	19,284,262	$	16,692,648	$	1,010,399		$	3,602,013

Average loans for the fourth quarter of 2022 increased 5.2% on a linked-quarter basis and 21.6% compared to the fourth quarter of 2021.

Summary of average securities - QTD Average	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q4		Q3		Q4		CQ vs.			CQ vs.
	2022		2022		2021		LQ			PY
Securities available for sale:
U.S. Treasury	$	752,339	$	746,429	$	69,398	$	5,910		$	682,941
U.S. Agencies		171,171		173,980		93,619		(2,809	)		77,552
Mortgage-backed		4,027,120		4,363,838		7,395,528		(336,718	)		(3,368,408	)
State and political subdivisions		1,353,307		1,600,043		3,437,841		(246,736	)		(2,084,534	)
Corporates		366,131		381,151		236,743		(15,020	)		129,388
Collateralized loan obligations		328,475		300,475		38,099		28,000			290,376
Total securities available for sale	$	6,998,543	$	7,565,916	$	11,271,228	$	(567,373	)	$	(4,272,685	)
Securities held to maturity:
U.S. Agencies	$	123,077	$	123,048	$	—	$	29		$	123,077
Mortgage-backed		2,983,489		3,039,998		105,622		(56,509	)		2,877,867
State and political subdivisions		2,765,717		2,621,633		1,089,587		144,084			1,676,130
Total securities held to maturity	$	5,872,283	$	5,784,679	$	1,195,209	$	87,604		$	4,677,074
Trading securities		11,799		5,651		29,426		6,148			(17,627	)
Other securities		315,748		330,950		299,829		(15,202	)		15,919
Total securities	$	13,198,373	$	13,687,196	$	12,795,692	$	(488,823	)	$	402,681

Average total securities decreased 3.6% on a linked-quarter basis and increased 3.1% compared to the fourth quarter of 2021.

Summary of average deposits - QTD Average				UMB Financial Corporation
(unaudited, dollars in thousands)
	Q4			Q3			Q4			CQ vs.		CQ vs.
	2022			2022			2021			LQ		PY
Deposits:
Noninterest-bearing demand	$	12,454,413		$	12,394,251		$	13,124,918		$	60,162	$	(670,505	)
Interest-bearing demand and savings		17,952,568			16,723,205			17,809,817			1,229,363		142,751
Time deposits		966,969			679,994			701,836			286,975		265,133
Total deposits	$	31,373,950		$	29,797,450		$	31,636,571		$	1,576,500	$	(262,621	)
Noninterest bearing deposits as % of total		39.7	%		41.6	%		41.5	%

Average deposits increased 5.3% on a linked-quarter basis and decreased 0.8% compared to the fourth quarter of 2021.

Capital

Capital information	UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
	December 31, 2022			September 30, 2022			December 31, 2021
Total equity	$	2,667,093		$	2,523,545		$	3,145,424
Book value per common share		55.20			52.24			64.95
Tangible book value per common share (Non-GAAP)		49.28			48.19			61.05

Regulatory capital:
Common equity Tier 1 capital	$	3,129,030		$	3,132,209		$	2,885,576
Tier 1 capital		3,129,030			3,132,209			2,885,576
Total capital		3,682,619			3,679,116			3,324,284

Regulatory capital ratios:
Common equity Tier 1 capital ratio		10.62	%		11.18	%		12.05	%
Tier 1 risk-based capital ratio		10.62			11.18			12.05
Total risk-based capital ratio		12.50			13.13			13.88
Tier 1 leverage ratio		8.43			8.66			7.61

At December 31, 2022, the regulatory capital ratios presented in the foregoing table exceeded all "well-capitalized" regulatory thresholds.

Asset Quality

Credit quality	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q4			Q3			Q2			Q1			Q4
	2022			2022			2022			2022			2021
Net charge-offs - total loans	$	2,189		$	1,173		$	28,128		$	8,378		$	8,061
Net loan charge-offs as a % of total average loans		0.04	%		0.02	%		0.62	%		0.20	%		0.19	%
Loans over 90 days past due	$	1,617		$	2,513		$	3,446		$	3,600		$	2,633
Loans over 90 days past due as a % of total loans		0.01	%		0.01	%		0.02	%		0.02	%		0.02	%
Nonaccrual and restructured loans	$	19,269		$	19,817		$	18,117		$	110,356		$	92,300
Nonaccrual and restructured loans as a % of total loans		0.09	%		0.10	%		0.10	%		0.62	%		0.54	%
Provision for credit losses	$	9,000		$	22,000		$	13,400		$	(6,500	)	$	8,500

Provision for credit losses for the fourth quarter decreased $13.0 million from the linked quarter and increased $0.5 million from the fourth quarter of 2021. These changes are driven by loan growth, portfolio credit metric changes, and changes in macro-economic metrics in the current period as compared to the prior periods.
Net charge-offs for the fourth quarter totaled $2.2 million, or 0.04%, of average loans, compared to $1.2 million, or 0.02%, of average loans in the linked quarter, and $8.1 million, or 0.19%, of average loans for the fourth quarter of 2021. On a year-to-date basis, net charge-offs totaled $39.9 million, or 0.21%, of average loans, compared to $44.9 million, or 0.27%, of average loans, for the same period in 2021.

Dividend Declaration

At the company's quarterly board meeting, the Board of Directors declared a $0.38 per share quarterly cash dividend, payable on April 3, 2023, to shareholders of record at the close of business on March 10, 2023.

Conference Call

The company plans to host a conference call to discuss its fourth quarter 2022 earnings results on Wednesday, January 25, 2023, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 844-200-6205 or (international) 646-904-5544 and requesting to join the UMB Financial call with access code 216125. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 4Q 2022 Conference Call

A replay of the conference call may be heard through February 8, 2023 by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 239596. 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, and tangible book value per share, all of which are non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from, or as a substitute for, GAAP results. The differences between the non-GAAP financial measures – net operating income, operating EPS, operating ROE, operating ROA, operating noninterest expense, operating efficiency ratio, operating PTPP, operating PTPP EPS, operating PTPP-FTE, operating PTPP-FTE EPS, tangible shareholders' equity, and tangible book value per share – and the nearest comparable GAAP financial measures are reconciled later in this release. The company believes that these non-GAAP financial measures and the reconciliations may be useful to investors because they adjust for acquisition-, severance-, and COVID-19 related items that management does not believe reflect the company's fundamental operating performance. COVID-19 related expense includes hazard pay for branch associates, computer hardware expense to support associates working remotely, and additional equipment, cleaning, and janitorial supplies to protect the well-being of our associates and customers while on the company's premises.

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, COVID-19 related 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, severance expense, and COVID-19 related 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, severance expense and COVID-19 related 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.

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, 2021, 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 other challenges and uncertainties related to the COVID-19 pandemic, such as 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
(dollars in thousands)
	December 31,
	2022			2021
	(unaudited)			(audited)
ASSETS
Loans	$	21,031,189		$	17,170,871
Allowance for credit losses on loans		(191,836	)		(194,771	)
Net loans		20,839,353			16,976,100
Loans held for sale		1,978			1,277
Securities:
Available for sale		7,006,347			11,976,514
Held to maturity, net of allowance for credit losses		5,859,192			1,478,476
Trading securities		17,980			31,875
Other securities		349,758			327,098
Total securities		13,233,277			13,813,963
Federal funds sold and resell agreements		958,597			1,216,357
Interest-bearing due from banks		1,179,105			8,841,906
Cash and due from banks		500,682			413,821
Premises and equipment, net		263,649			270,933
Accrued income

UMB Financial Corporation Reports Fourth Quarter Net Income of $100.2 Million and Record Full-Year Earnings of $431.7 Million