UMB Financial (UMBF) 8-K UMB Financial Corporation Reports Earnings Growth of 30.8 Percent For First Quarter 2007

UMB Financial Corporation

News Release

1010 Grand Boulevard
Kansas City, MO 64106
816/860-7000
umb.com

//FOR IMMEDIATE RELEASE//

Contact: Pam Blase: 816.860.5606

Investor Relations Contact: Begonya Klumb: 816.860.7906

UMB Financial Corporation Reports Earnings Growth of 30.8 Percent For First Quarter 2007

Loan Balances Reach Record Levels at $3.9 Billion

Selected quarterly financial highlights:

·	Record quarterly revenue of $124.4 million
·	Record quarterly noninterest income of $67.4 million
·	Net interest margin increased 9 basis points
·	Loans increased 13.8 percent
·	Credit quality remained strong with net charge-offs representing 0.04
	percent of average loans

Kansas City, Mo. (April 24, 2007) – UMB Financial Corporation (NASDAQ: UMBF), a Kansas City-based multi-bank holding company, announced quarterly earnings of $17.3 million or $0.41 per share ($0.41 diluted) for the three-month period ended March 31, 2007. This is an increase of $4.1 million, or 30.8 percent, compared to the first quarter 2006 earnings of $13.2 million, or $0.31 per share ($0.31 diluted). Revenue was higher due to a 9.0 percent increase in net interest income and a 12.7 percent increase in noninterest income. These revenue increases were partially offset by a 7.8 percent increase in noninterest expense.

“Our net income growth for the quarter is significantly higher than the growth projected for the industry,” said Mariner Kemper, Chairman and Chief Executive Officer, UMB Financial Corporation. “These results are evidence that our long-term strategies to grow our company are paying off. We have a disciplined focus on execution and accountability, and our associates are delivering results. End-of-period loans grew 13.8 percent over the first quarter of 2006, which is better than the nine percent growth reported by the Federal Reserve for the industry during the quarter. We are encouraged by these results, which are underpinned by our commitment to grow both commercial and consumer loans while maintaining our strong credit quality underwriting standards.”

“Our fee businesses are also off to a strong start in 2007,” said Peter deSilva, President and Chief Operating Officer. “The solid 12.7 percent growth in noninterest income was primarily driven by our Asset Management, Corporate Trust and Credit Card divisions. UMB continues to receive nationwide recognition in many of our fee businesses. For example, we were recently ranked the 27th ACH originator in 2006 by NACHA – The Electronics Payments Association. Moreover, we

were ranked by Thomson Financial as the 4th largest municipal bond trustee by number of new municipal deals and the 4th largest paying agent by transaction volume during the first quarter of 2007. Additionally, for the quarter, average deposits were up 3.0 percent, due in part to our successful deposit marketing campaigns. Noninterest-bearing deposits are 32% of our total deposits, which is above the industry average, and an important part of our strategy.”

Net Interest Income

Net interest income for the first quarter of 2007 increased $4.7 million, or 9.0 percent, compared to the same period in 2006 due primarily to higher average earning assets and rates. Average earning assets increased by $407.7 million, or 5.9 percent, as compared to the first quarter of 2006. Most of this increase was due to a $464.1 million, or 13.6 percent, increase in average loans.

Net interest margin increased by 9 basis points to 3.32 percent for the three months ended March 31, 2007 as compared to the same quarter in 2006. Although net interest spread decreased by 4 basis points for the three months ended March 31, 2007, the contribution from noninterest-bearing deposits increased by 13 basis points. Noninterest-bearing deposits comprised 32.2 percent of total deposits as of March 31, 2007.

Noninterest Income and Expense

Noninterest income increased $7.6 million, or 12.7 percent, for the three months ended March 31, 2007 compared to the same period in 2006. The increase was primarily attributable to higher trust and securities processing income, bankcard income and deposit service charges. Trust and securities processing income increased $4.6 million, or 20.4 percent, for the three months ended March 31, 2007 compared to the same period in 2006. This increase was primarily due to an $811 million, or 19.0 percent, increase in total assets under management for the UMB Scout Funds at March 31, 2007 as compared to March 31, 2006. Bankcard fees were $1.2 million, or 13.4 percent, higher in the first quarter 2007 than the same period in 2006 due mostly to increased interchange fees from greater activity. Deposit service charges were $1.3 million, or 7.3 percent, higher in the first quarter 2007 than the same period in 2006 due mostly to consumer pricing changes implemented during the quarter.

Noninterest expense increased $7.1 million, or 7.8 percent, for the three months ended March 31, 2007 compared to the same period in 2006. The most significant increases in noninterest expense were salaries, equipment, occupancy and amortization of other intangibles. Salary expense increased by $4.0 million, or 8.4 percent, mostly due to higher commissions and bonuses, an increase in equity-based compensation due to an additional year under the long-term incentive program and increased benefit costs. Equipment expense increased by $2.2 million, or 20.2 percent, in the first quarter of 2007 as compared to the same quarter in 2006 due mostly to higher software and equipment amortization and maintenance costs. Occupancy expense is reported net of rental income. The cause for the increase in overall occupancy expense is mostly due to a decrease in rental income, as well as small increases in depreciation and maintenance of existing facilities. The amortization of other intangibles increased over 2006 due to the amortization of identifiable intangible assets associated with the acquisition of Mountain States Bank in September 2006.

Balance Sheet

“The yield on our investment portfolio was 70 basis points higher in the first quarter of 2007 than during the same period last year,” commented Mike Hagedorn, Chief Financial Officer. “Despite the challenges of an inverted yield curve, we expect our core investment portfolio will continue to be a contributor of margin growth for the remainder of 2007.”

Average total assets for the three months ended March 31, 2007 were $8.2 billion compared to $7.7 billion for the same period in 2006, an increase of $427.8 million, or 5.5 percent. Average earning assets increased by $407.7 million, or 5.9 percent. In addition to the increase in earning assets, the mix of higher yielding loans to overall earning assets was favorable. Average loans comprised 52.9 percent of the company’s earning asset base for 2007 as compared to 49.3 percent for 2006.

For the three months ended March 31, 2007 average loans were $3.9 billion compared to $3.4 billion for the same period in 2006, an increase of 13.6 percent. Actual loan balances on March 31, 2007 were $3.9 billion, compared to $3.4 billion on March 31, 2006. These balances are as follows:

			Increase	Percent
Loans by Category (in thousands)	March 31, 2007	March 31, 2006	(Decrease)	Change
Commercial, financial and agricultural	$1,706,234	$1,562,679	$143,555	9.2%
Real estate construction	84,676	49,014	35,662	72.8
Consumer	933,307	957,033	(23,726)	(2.5)
Real estate	1,162,995	843,425	319,570	37.9
Leases	6,391	5,955	436	7.3
Loans before loans held for sale	$3,893,603	$3,418,106	$475,497	13.9
Loans held for sale	16,204	17,960	(1,756)	(9.8)
Total Loans and loans held for sale	$3,909,807	$3,436,066	$473,741	13.8

Nonperforming loans at March 31, 2007 totaled $7.6 million compared to $6.4 million a year earlier. As a percentage of total loans, nonperforming loans were 0.20 percent of loans as of March 31, 2007 as compared to 0.19 percent at March 31, 2006. The company’s allowance for loan losses totaled $44.8 million, or 1.15 percent of total loans as of March 31, 2007 compared to $40.7 million, or 1.19 percent of total loans as of March 31, 2006.

Average securities were $2.8 billion for the first quarter of 2007 compared to $3.0 billion for the same period in 2006, a decrease of $140.5 million, or 4.7 percent. This decrease was partially offset by an $85.6 million increase in federal funds sold and resell agreements.

Average total deposits increased $165.8 million, or 3.0 percent, to $5.7 billion for the three months ended March 31, 2007 compared to the same period in 2006. The increase in deposits came primarily from time deposits and money market accounts as a result of targeted marketing campaigns. Average time deposit accounts increased by $82.4 million, or 6.7 percent, for the three months ended March 31, 2007 as compared to 2006. Average money market accounts increased by $38.4 million, or 3.8 percent, for the first quarter of 2007 as compared to the first quarter of 2006. Total deposits as of March 31, 2007 and 2006 were $5.6 billion.

As of March 31, 2007, UMB had total shareholders’ equity of $859.3 million, a 3.8 percent increase from the prior year.

The company will host a conference call to discuss its first quarter results on April 25, 2007, at 8:30 a.m. (CDT). Interested parties may access the call by dialing U.S. (toll-free) 866-250-3615 or access the following Web link to the live call: http://w.on24.com/r.htm?e=41811&s=1&k=4AD4270160797B4DFD3B23955208A3C5 or visit umb.com.

A replay of the conference call may be heard until May 9th, 2007, by calling (U.S.) 800-405-2236 or (U.S.) 303-590-3000. The replay pass code required for playback is conference ID 11087560#. The call replay may also be accessed via umb.com by visiting the investor relations area.

Forward-Looking Statements:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements rely on a number of assumptions concerning future events and are subject to risks and uncertainties, which could cause actual results to differ materially from those contemplated by the forward-looking statements in this Current Report on Form 8-K, any exhibits to this Current Report and other public statements the company may make. While management of UMB believes their assumptions are reasonable, UMB cautions that changes in general economic conditions, changes in interest rates, changes in the securities markets, changes in operations, changes in competition, technology changes, legislative or regulatory changes, the ability of customers to repay loans, changes in loan demand, the ability to integrate acquisitions and increases in employee costs, and other risks and uncertainties detailed in UMB’s filings with the Securities and Exchange Commission, may cause actual results to differ materially from those discussed in this release. UMB has no duty to update such statements, and undertakes no obligation to update or supplement forward-looking statements that become untrue because of new information, future events or otherwise.

About UMB:

UMB Financial Corporation is a multi-bank holding company headquartered in Kansas City, Mo., offering complete banking, asset management and related financial services to both individual and business customers nationwide. Its banking subsidiaries own and operate 138 banking centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona. Subsidiaries of the holding company and the lead bank, UMB Bank, n.a., include an investment services group based in Milwaukee, Wisconsin, a trust management company in South Dakota, and single-purpose companies that deal with brokerage services and insurance.

CONSOLIDAT ED BALANCE SHEET S		UMB Financial Corporation
(all dollars in thousands) (unaudited)
		March 31,
Assets		2007		2006
Loans	$	3,893,603	$	3,418,106
Allowance for loan losses		(44,763)		(40,679)
Net loans		3,848,840		3,377,427
Loans held for sale		16,204		17,960
Investment Securities:
Available for sale		2,656,391		2,524,736
Held to maturity		41,748		62,453
Federal Reserve Bank stock and other		15,392		15,022
Trading securities		87,971		62,736
Total investment securities		2,801,502		2,664,947
Federal funds and resell agreements		430,369		759,879
Cash and due from banks		450,891		418,125
Bank premises and equipment, net		237,270		234,198
Accrued income		57,301		49,896
Goodwill on purchased affiliates		94,670		59,727
Other intangibles		18,669		6,857
Other assets		44,317		48,296
Total assets	$	8,000,033	$	7,637,312
Liabilities
Deposits:
Noninterest - bearing demand	$	1,812,675	$	2,065,218
Interest - bearing demand and savings		2,610,851		2,418,597
Time deposits under $100,000		763,588		791,661
Time deposits of $100,000 or more		445,850		351,717
Total deposits		5,632,964		5,627,193
Federal funds and repurchase agreements		1,396,491		1,088,953
Short-term debt		2,136		5,671
Long-term debt		37,204		37,879
Accrued expenses and taxes		52,158		33,638
Other liabilities		19,828		16,155
Total liabilities		7,140,781		6,809,489
Shareholders' Equity
Common stock		55,057		27,528
Capital surplus		700,161		726,244
Retained earnings		391,880		350,568
Accumulated other comprehensive income (loss)		(9,839)		(28,485)
Treasury stock		(278,007)		(248,032)
Total shareholders' equity		859,252		827,823
Total liabilities and shareholders' equity	$	8,000,033	$	7,637,312

Consolidated Statements of Income		UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
		T hree Months Ended
		March 31,
Interest Income		2007		2006
Loans	$	66,102	$	53,234
Securities:
Taxable Interest		24,742		21,753
Tax-exempt interest		6,027		5,683
Total securities income		30,769		27,436
Federal funds and resell agreements		7,206		5,088
Trading securities and other		596		715
Total interest income		104,673		86,473
Interest Expense
Deposits		28,818		20,762
Federal funds and repurchase agreements		18,355		12,835
Short-term debt		103		152
Long-term debt		433		478
Total interest expense		47,709		34,227
Net interest income		56,964		52,246
Provision for loan losses		1,500		3,159
Net interest income after provision for loan losses		55,464		49,087
Noninterest Income
Trust and securities processing		27,288		22,670
Trading and investment banking		4,838		4,113
Service charges on deposits		18,889		17,607
Insurance fees and commissions		676		991
Brokerage fees		2,077		1,518
Bankcard fees		10,146		8,946
Other gains, net		-		22
Gains (loss) on sales of securities available for sale		10		9
Other		3,515		3,944
Total noninterest income		67,439		59,820
Noninterest Expense
Salaries and employee benefits		51,191		47,238
Occupancy, net		7,114		6,554
Equipment		13,357		11,115
Supplies, postage and telephone		5,720		5,775
Marketing and business development		3,537		3,622
Processing fees		6,646		6,311
Legal and consulting		1,525		1,649
Bankcard		3,342		3,291
Amortization of other intangibles		734		218
Other		4,994		5,260
Total noninterest expense		98,160		91,033
Income before income taxes		24,743		17,874
Income tax provision		7,419		4,633
Net income	$	17,324	$	13,241
Per Share Data
Net income- Basic	$	0.41	$	0.31
Net income- Diluted		0.41		0.31
Dividends		0.14		0.13
Weighted average shares outstanding		42,032,581		42,819,521

Consolidated Statements of
Shareholders' Equity				UMB Financial Corporation
(all dollars in thousands) (unaudited)
										Accumulated
										Other
		Common		Capital		Unearned		Retained Comprehensive				Treasury
		Stock		Surplus		Compensation		Earnings		Income		Stock		Total
Balance - January 1, 2006	$	27,528	$	728,108	$	(1,904) $		342,675	$	(21,550)	$	(241,394)	$	$ 833,463
Adoption of SFAS 123( R)		-		(1,904)		1,904		-		-		-		-
Comprehensive income/ (loss)
Net income		-		-		-		13,241		-		-		13,241
Change in unrealized losses on
securities		-		-		-		-		(6,935)		-		(6,935)
Total comprehensive income														6,306
Cash dividends ($0.13 per share)		-		-		-		(5,348)		-		-		(5,348)
Purchase of treasury stock		-		-		-		-		-		(6,812)		(6,812)
Issuance of stock awards		-		89		-		-		-		61		150
Recognition of restricted stock
compensation		-		(126)		-		-		-		-		(126)
Sale of treasury stock		-		62		-		-		-		46		108
Exercise of stock options		-		15		-		-		-		67		82
Balance - March 31, 2006	$	27,528	$	726,244	$	-	$	350,568	$	(28,485)	$	(248,032)	$	827,823
Balance - January 1, 2007	$	55,057	$	699,794	$	-	$	380,464	$	(17,259)	$	(269,181)	$	848,875
Comprehensive income
Net income		-		-		-		17,324		-		-		17,324
Change in unrealized losses on
securities		-		-		-		-		7,420		-		7,420
Total comprehensive income														24,744
Cash dividends ($0.14 per share)		-		-		-		(5,908)		-		-		(5,908)
Purchase of treasury stock		-		-		-		-		-		(9,702)		(9,702)
Issuance of stock awards				(455)		-		-		-		592		137
Recognition of stock based
compensation		-		645		-		-		-		-		645
Sale of treasury stock		-		71		-		-		-		44		115
Exercise of stock options		-		106		-		-		-		240		346
Balance - March 31, 2007	$	55,057	$	700,161	$	-	$	391,880	$	(9,839)	$	(278,007)	$	859,252

Average Balances / Yields and Rates				UMB Financial Corporation
(tax - equivalent basis)
(all dollars in thousands)(unaudited)			Three Months Ended March 31,
		2007				2006
		Average	Average			Average	Average
Assets		Balance	Yield/ Rate			Balance	Yield/ Rate
Loans, net of unearned interest	$	3,867,083	6.94	%	$	3,403,016	6.35	%
Securities:
Taxable		2,135,927	4.70			2,312,665	3.81
Tax-exempt		702,724	5.06			666,494	5.06
Total securities		2,838,651	4.79			2,979,159	4.09
Federal funds and resell agreements		541,339	5.40			455,737	4.53
Other earning assets		61,163	4.05			62,587	4.78
Total earning assets		7,308,236	5.96			6,900,499	5.24
Allowance for loan losses		(44,978)				(40,281)
Other assets		887,458				862,681
Total assets	$	8,150,716			$	7,722,899
Liabilities and Shareholders' Equity
Interest-bearing deposits	$	3,893,144	3.00	%	$	3,631,366	2.32	%
Federal funds and repurchase agreements		1,497,096	4.97			1,271,599	4.09
Borrowed funds		46,252	4.70			53,340	4.79
Total interest-bearing liabilities		5,436,492	3.56			4,956,305	2.80
Noninterest-bearing demand deposits		1,779,403				1,875,395
Other liabilities		77,263				55,308
Shareholders' equity		857,558				835,891
Total liabilities and shareholders' equity	$	8,150,716			$	7,722,899
Net interest spread			2.40	%			2.44	%
Net interest margin			3.32				3.23

FIRST QUART ER 2007
FINANCIAL HIGHLIGHT S		UMB Financial Corporation
(all dollars in thousands, except per share data) (unaudited)
T hree Months Ended March 31,		2007		2006
Net interest income	$	56,964	$	52,246
Provision for loan losses		1,500		3,159
Noninterest income		67,439		59,820
Noninterest expense		98,160		91,033
Income before income taxes		24,743		17,874
Net income		17,324		13,241
Net income per share - Basic		0.41		0.31
Net income per share - Diluted		0.41		0.31
Return on average assets		0.86	%	0.70	%
Return on average equity		8.19	%	6.42	%
At March 31
Assets	$	8,000,033	$	7,637,312
Loans, net of unearned interest		3,893,603		3,418,106
Securities		2,801,502		2,664,947
Deposits		5,632,964		5,627,193
Shareholders' equity		859,252		827,823
Book value per share		20.42		19.35
Market price per share		37.76		35.12
Equity to assets		10.74	%	10.84	%
Allowance for loan losses	$	44,763	$	40,679
As a % of loans		1.15	%	1.19	%
Nonaccrual and restructured loans	$	7,613	$	6,369
As a % of loans		0.20	%	0.19	%
Loans over 90 days past due	$	4,143	$	3,879
As a % of loans		0.11	%	0.11	%
Other real estate owned	$	310	$	40
Common shares outstanding		42,078,002		42,792,118
Average Balances
T hree Months Ended March 31
Assets	$	8,150,716	$	7,722,899
Loans, net of unearned interest		3,867,083		3,403,016
Securities		2,838,651		2,979,159
Deposits		5,672,547		5,506,761
Shareholders' equity		857,558		835,891

Selected Financial Data
of Affiliate Banks					UMB Financial Corporation
(all dollars in thousands)(unaudited)				March 31, 2007
				Loans
				Net of
		Total		Unearned	Total	Shareholder's
Missouri		Assets		Interest	Deposits	Equity
UMB Bank, n.a.	$	6,577,350	$	3,080,809 $	4,691,543 $	557,908
UMB Bank Warsaw, N.A.		87,939		38,598	66,809	6,697
Colorado
UMB Bank Colorado, n. a.		849,622		535,721	589,776	128,195
Kansas
UMB National Bank of America		603,329		224,984	392,006	57,823
Arizona
UMB Bank Arizona, n.a.		21,186		19,563	9,661	9,490
Banking - Related Subsidiarie s
UMB Community Development Corporation
UMB Banc Leasing Corp.
UMB Scout Brokerage Services, Inc.
UMB Scout Insurance Services, Inc.
UMB Capital Corporation
United Missouri Insurance Company
UMB Trust Company of South Dakota
Scout Investment Advisors, Inc.
UMB Fund Services, Inc.
UMB Consulting Services, Inc.
Kansas City Realty Company
Kansas City Financial Corporation
UMB Redevelopment Corporation
UMB Realty Company, LLC
UMB National Sales Corporation
Grand Distribution Services, LLC
UMB Distribution Service, LLC
Warsaw Financial Corporation