UMB Financial (UMBF) 10-Q 5 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information
	3 Months Ended Mar. 31, 2010	Apr. 30, 2010
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2010-03-31
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Trading Symbol	UMBF
Entity Registrant Name	UMB FINANCIAL CORP
Entity Central Index Key	0000101382
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		40,464,984

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands	Mar. 31, 2010	Dec. 31, 2009
ASSETS
Loans:	$4,301,965	$4,314,705
Allowance for loan losses	(67,442)	(64,139)
Net loans	4,234,523	4,250,566
Loans held for sale	17,706	17,523
Investment Securities:
Available for sale	4,740,505	4,885,788
Held to maturity (market value of $57,570 and $58,366, respectively)	55,968	56,986
Federal Reserve Bank stock and other	22,432	22,732
Trading securities	34,858	38,214
Total investment securities	4,853,763	5,003,720
Federal funds sold and securities purchased under agreements to resell	21,177	329,765
Interest-bearing due from banks	724,437	1,057,195
Cash and due from banks	319,966	458,093
Bank premises and equipment, net	213,330	217,642
Accrued income	61,515	64,949
Goodwill	131,356	131,356
Other intangibles	46,635	47,462
Other assets	99,648	85,084
Total assets	10,724,056	11,663,355
Deposits:
Noninterest-bearing demand	2,716,510	2,775,222
Interest-bearing demand and savings	3,904,509	3,904,268
Time deposits under $100,000	738,260	772,040
Time deposits of $100,000 or more	861,230	1,082,958
Total deposits	8,220,509	8,534,488
Federal funds purchased and repurchase agreements	1,311,296	1,927,607
Short-term debt	21,874	29,514
Long-term debt	24,212	25,458
Accrued expenses and taxes	103,549	107,896
Other liabilities	13,165	22,841
Total liabilities	9,694,605	10,647,804
SHAREHOLDERS' EQUITY
Common stock, $1.00 par value; 80,000,000 shares authorized, 55,056,730 shares issued, and 40,488,195 and 40,439,607 shares outstanding, respectively	55,057	55,057
Capital surplus	713,062	712,774
Retained earnings	581,443	562,748
Accumulated other comprehensive income	36,631	40,454
Treasury stock, 14,568,535 and 14,617,123 shares, at cost, respectively	(356,742)	(355,482)
Total shareholders' equity	1,029,451	1,015,551
Total liabilities and shareholders' equity	$10,724,056	$11,663,355

1_CONDENSED CONSOLIDATED BALANC

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Share data	Mar. 31, 2010	Dec. 31, 2009
Held to maturity, market value	$57,570	$58,366
Common stock, par value	$1	$1
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	55,056,730	55,056,730
Common stock, shares outstanding	40,488,195	40,439,607
Treasury stock, shares	14,568,535	14,617,123

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Thousands, except Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
INTEREST INCOME
Loans	$53,483	$52,800
Securities:
Taxable interest	23,779	29,122
Tax-exempt interest	7,317	7,020
Total securities income	31,096	36,142
Federal funds and resell agreements	61	130
Interest-bearing due from banks	1,319	842
Trading securities	142	168
Total interest income	86,101	90,082
INTEREST EXPENSE
Deposits	9,624	13,823
Federal funds and repurchase agreements	444	660
Long-term debt	259	390
Total interest expense	10,327	14,873
Net interest income	75,774	75,209
Provision for loan losses	8,310	6,000
Net interest income after provision for loan losses	67,464	69,209
NONINTEREST INCOME
Trust and securities processing	35,572	24,899
Trading and investment banking	7,027	4,861
Service charges on deposits	20,519	20,795
Insurance fees and commissions	1,699	1,570
Brokerage fees	1,336	2,352
Bankcard fees	12,020	10,947
Gain on sales of securities available for sale, net	5,382	42
Other	2,875	3,443
Total noninterest income	86,430	68,909
NONINTEREST EXPENSE
Salaries and employee benefits	62,253	57,996
Occupancy, net	8,921	8,144
Equipment	10,870	12,996
Supplies and services	4,707	5,377
Marketing and business development	3,705	3,191
Processing fees	11,029	7,004
Legal and consulting	1,622	1,548
Bankcard	3,190	3,957
Amortization of other intangible assets	2,091	976
Regulatory Fees	3,238	1,727
Other	5,752	3,728
Total noninterest expense	117,378	106,644
Income before income taxes	36,516	31,474
Income tax provision	10,331	8,873
NET INCOME	$26,185	$22,601
PER SHARE DATA
Net income - basic	0.65	0.56
Net income - diluted	0.65	0.55
Dividends	0.185	0.175
Weighted average shares outstanding	40,089,527	40,598,097

2_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)
In Thousands	Common Stock	Capital Surplus	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Stock	Total
Beginning Balance at Dec. 31, 2008	$55,057	$707,812	$502,073	$41,105	($331,236)	$974,811
Comprehensive income
Net Income			22,601			22,601
Change in unrealized gains on securities				5,370		5,370
Total comprehensive income						27,971
Cash dividends ($0.185 per share in 2010 and $0.175 per share in 2009)			(7,188)			(7,188)
Purchase of treasury stock					(12,443)	(12,443)
Issuance of equity awards		(1,261)			1,393	132
Recognition of equity based compensation		1,202				1,202
Net tax benefit related to equity compensation plans		58				58
Sale of treasury stock		114			54	168
Exercise of stock options		119			154	273
Ending Balance at Mar. 31, 2009	55,057	708,044	517,486	46,475	(342,078)	984,984
Beginning Balance at Dec. 31, 2009	55,057	712,774	562,748	40,454	(355,482)	1,015,551
Comprehensive income
Net Income			26,185			26,185
Change in unrealized gains on securities				(3,823)		(3,823)
Total comprehensive income						22,362
Cash dividends ($0.185 per share in 2010 and $0.175 per share in 2009)			(7,490)			(7,490)
Purchase of treasury stock					(2,961)	(2,961)
Issuance of equity awards		(1,374)			1,498	124
Recognition of equity based compensation		1,410				1,410
Net tax benefit related to equity compensation plans		48				48
Sale of treasury stock		113			63	176
Exercise of stock options		91			140	231
Ending Balance at Mar. 31, 2010	$55,057	$713,062	$581,443	$36,631	($356,742)	$1,029,451

3_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $)
	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash dividends, per share	0.185	0.175

4_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Operating Activities
Net Income	$26,185	$22,601
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	8,310	6,000
Depreciation and amortization	9,170	9,561
Deferred income tax benefit	(3,087)	(2,532)
Net decrease in trading securities	3,356	1,970
Gains on sale of securities available for sale	(5,382)	(42)
Losses on sale of assets	92	1
Amortization of securities premiums, net of discount accretion	7,299	3,963
Originations of loans held for sale	(26,577)	(67,157)
Net gains on sales of loans held for sale	(170)	(389)
Proceeds from sales of loans held for sale	26,564	54,633
Issuance of equity awards	124	132
Equity based compensation	1,410	1,202
Changes in:
Accrued income	3,434	2,730
Accrued expenses and taxes	640	(1,947)
Other assets and liabilities, net	(5,423)	6,263
Net cash provided by operating activities	45,945	36,989
Investing Activities
Proceeds from maturities of securities held to maturity	2,626	1,229
Proceeds from sales of securities available for sale	360,020	98
Proceeds from maturities of securities available for sale	624,202	1,194,813
Purchases of securities held to maturity	(1,678)	(1,468)
Purchases of securities available for sale	(865,300)	(436,286)
Net decrease in loans	19,334	76,740
Net decrease in fed funds sold and resell agreements	308,588	183,258
Net increase in interest-bearing balances due from other financial institutions	(18,458)	(10,391)
Purchases of bank premises and equipment	(3,096)	(3,581)
Net cash paid for acquisitions	(12,386)
Proceeds from sales of bank premises and equipment	169	163
Net cash provided by investing activities	414,021	1,004,575
Financing Activities
Net decrease in demand and savings deposits	(58,621)	(45,008)
Net decrease in time deposits	(255,508)	(3,505)
Net decrease in fed funds purchased and repurchase agreements	(616,311)	(713,114)
Net (decrease) increase in short-term debt	(7,640)	11,354
Repayment of long-term debt	(1,246)	(1,166)
Cash dividends paid	(7,477)	(7,178)
Net tax benefit related to equity compensation plans	48	58
Proceeds from exercise of stock options and sales of treasury shares	407	441
Purchases of treasury stock	(2,961)	(12,443)
Net cash used in financing activities	(949,309)	(770,561)
(Decrease) increase in cash and due from banks	(489,343)	271,003
Cash and due from banks at beginning of period	1,229,645	887,559
Cash and due from banks at end of period	740,302	1,158,562
Supplemental Disclosures:
Income taxes paid	783	208
Total interest paid	$13,255	$16,269

Financial Statement Presentatio

Financial Statement Presentation
	3 Months Ended Mar. 31, 2010
Financial Statement Presentation	1. Financial Statement Presentation The condensed consolidated financial statements include the accounts of UMB Financial Corporation and its subsidiaries (collectively, the Company) after elimination of all significant intercompany transactions. In the opinion of management of the Company, all adjustments, which were of a normal recurring nature and necessary for a fair presentation of the financial position and results of operations, have been made. The results of operations and cash flows for the interim periods presented may not be indicative of the results of the full year. The financial statements should be read in conjunction with Managements Discussion and Analysis of Financial Condition and Results of Operations and in conjunction with the Companys Annual Report on Form 10-K for the fiscal year ended December31, 2009.

Summary of Accounting Policies

Summary of Accounting Policies
	3 Months Ended Mar. 31, 2010
Summary of Accounting Policies	2. Summary of Accounting Policies The Company is a multi-bank financial holding company, which offers a wide range of banking and other financial services to its customers through its branches and offices in the states of Missouri, Kansas, Colorado, Illinois, Oklahoma, Arizona, Nebraska, Pennsylvania, South Dakota, Indiana, and Wisconsin. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions also impact reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A summary of the significant accounting policies to assist the reader in understanding the financial presentation is listed in the Notes to Consolidated Financial Statements in the Companys Annual Report on Form 10-K for the fiscal year ended December31, 2009. Interest-bearing Due From Banks Amounts due from the Federal Reserve Bank which are interest-bearing for all periods presented, and amounts due from certificates of deposits held at other financial institutions are included in interest-bearing due from banks. The amount due from the Federal Reserve Bank totaled $420.3 million and $806.8 million at March31, 2010 and March31, 2009, respectively, and is considered cash and cash equivalents. The amounts due from certificates of deposit totaled $304.1 million and $121.5 million at March31, 2010 and March31, 2009, respectively. This table provides a summary of cash and due from banks as presented on the Consolidated Statement of Cash Flows as of March31, 2010 and March31, 2009 (in thousands): March31, 2010 2009 Due from the Federal Reserve $ 420,336 $ 806,840 Cash and due from banks 319,966 351,722 Cash and due from banks at end of period $ 740,302 $ 1,158,562 Per Share Data Basic income per share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted income per share includes the dilutive effect of 285,268 and 282,226 shares issuable upon the exercise of stock options granted by the Company at March31, 2010 and 2009, respectively. Options issued under employee benefit plans to purchase 1,119,068 and 971,191 shares of common stock were outstanding at March31, 2010 and 2009, respectively, but were not included in the computation of diluted EPS because the options were anti-dilutive.

New Accounting Pronouncements

New Accounting Pronouncements
	3 Months Ended Mar. 31, 2010
New Accounting Pronouncements	3. New Accounting Pronouncements Accounting for Transfers of Financial Assets- an amendment of FASB Statement No.140 In June 2009, the Financial Accounting Standards Board (FASB) issued SFAS No.166 Accounting for Transfers of Financial Assets-an amendment of FASB Statement No.140 or Accounting Standards Codification (ASC) 860. The objective of this Statement is to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferors continuing involvement, if any, in transferred financial assets. This Statement removes the concept of a qualifying special-purpose entity from SFAS No.140 and removes the exception from applying FASB Interpretation No.46 to qualifying special-purpose entities. The Company adopted this statement on January1, 2010 without a material impact on its financial position or results of operations. Amendments to FASB Interpretation No.46(R) In June 2009, the FASB issued SFAS No.167, Amendments to FASB Interpretation No.46(R) or ASC 810, which amends the consolidation guidance applicable to variable interest entities. The amendments to the consolidation guidance affect all entities currently within the scope of FIN 46(R), as well as qualifying special-purpose entities that are currently excluded from the scope of FIN 46(R). The Company adopted this statement on January1, 2010 without a material impact on its financial position or results of operations. Fair Value Measurements and Disclosures In January2010, the FASB issued Accounting Standards Update (ASU) No.2010-06, Fair Value Measurements and Disclosures (ASU 2010-06), which amends ASC 820, adding new requirements for disclosures for Levels 1 and 2, separate disclosures of purchases, sales, issuances, and settlements relating to Level 3 measurements and clarification of existing fair value disclosures.ASU 2010-06 is effective for interim and annual periods beginning after December15, 2009, except for the requirement to provide Level 3 activity of purchases, sales, issuances, and settlements on a gross basis, which will be effective for fiscal years beginning after December15, 2010.The Company adopted this statement on January1, 2010 without a material impact on its financial position or results of operations.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses
	3 Months Ended Mar. 31, 2010
Loans and Allowance for Loan Losses	4. Loans and Allowance for Loan Losses This table provides a summary of the major categories of loans as of March31, 2010 and December31, 2009 (in thousands): March 31, 2010 December31, 2009 Commercial, financial, and agricultural $ 1,943,520 $ 1,963,533 Real estate construction 98,884 106,914 Consumer 412,607 441,406 Real estate 1,839,418 1,795,342 Leases 7,536 7,510 Total loans 4,301,965 4,314,705 Loans held for sale 17,706 17,523 Total loans and loans held for sale $ 4,319,671 $ 4,332,228 This table is an analysis of the allowance for loan losses for the three months ended March31, 2010 and 2009 (in thousands): ThreeMonthsEndedMarch31, 2010 2009 Beginning allowance - January 1 $ 64,139 $ 52,297 Additions (deductions): Charge-offs (6,007 ) (5,970 ) Recoveries 1,000 1,678 Net charge-offs (5,007 ) (4,292 ) Provision charged to expense 8,310 6,000 Ending allowance - March 31 $ 67,442 $ 54,005 Impaired loans Impaired loans are measured based on the present value of expected future cash flows discounted at the loans effective interest rate, at the loans observable market price, or at the fair value of the collateral securing the loan. The summary below provides an analysis of impaired loans as of and for the three months ended March31, 2010 and twelve months ended December31, 2009 (in thousands): March 31, 2010 December31, 2009 Total impaired loans as of March31 and December31 $ 23,449 $ 20,880 Amount of impaired loans which have a related allowance 17,186 14,290 Amount of related allowance 7,736 3,813 Remaining impaired loans with no allowance 6,263 6,590 Average recorded investment in impaired loans during the period 22,165 14,974

Securities

Securities
	3 Months Ended Mar. 31, 2010
Securities	5. Securities Securities Available for Sale This table provides detailed information about securities available for sale at March31, 2010 and December31, 2009 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March31, 2010 U.S. Treasury $ 805,784 $ 3,375 $ (402 ) $ 808,757 U.S. Agencies 1,526,156 8,711 (926 ) 1,533,941 Mortgage-backed 1,419,839 27,333 (1,821 ) 1,445,351 State and political subdivisions 930,966 22,284 (794 ) 952,456 Total $ 4,682,745 $ 61,703 $ (3,943 ) $ 4,740,505 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December31, 2009 U.S. Treasury $ 596,067 $ 3,549 $ (539 ) $ 599,077 U.S. Agencies 1,479,784 10,426 (1,450 ) 1,488,760 Mortgage-backed 1,786,899 33,038 (6,279 ) 1,813,658 State and political subdivisions 958,231 26,530 (468 ) 984,293 Total $ 4,820,981 $ 73,543 $ (8,736 ) $ 4,885,788 The following table presents contractual maturity information for securities available for sale at March31, 2010 (in thousands): Amortized Cost Fair Value Due in 1 year or less $ 869,510 $ 874,518 Due after 1 year through 5 years 2,189,684 2,213,263 Due after 5 years through 10 years 193,688 197,240 Due after 10 years 10,024 10,133 Total 3,262,906 3,295,154 Mortgage-backed securities 1,419,839 1,445,351 Total securities available for sale $ 4,682,745 $ 4,740,505 Securities may be disposed of before contractual maturities due to sales by the Company or because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. For the three months ended March31, 2010, proceeds from the sales of securities available for sale were $360,020,000 compared to $98,000 for the same period in 2009. Securities transactions resulted in gross realized gains of $5,610,000 and $42,000 for the three months ended March31, 2010 and 2009. The gross realized losses for the three months ended March31, 2010 and 2009 were $228,000 and $0, respectively. Trading Securities The net unrealized gains on trading securities at March31, 2010 and March31, 2009 were $283,488 and $173,860, respectively, and were included in trading and investment banking income. Securities Held to Maturity The table below provides detailed information for securities held to maturity at March31, 2010 and December31, 2009 (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March31, 2010 State and political subdivisions $ 55,968 $ 1,602 $ $ 57,570 December31, 2009 State and political subdivi

Goodwill and Other Intangibles

Goodwill and Other Intangibles
	3 Months Ended Mar. 31, 2010
Goodwill and Other Intangibles	6. Goodwill and Other Intangibles Changes in the carrying amount of goodwill for the periods ended March31, 2010 and December31, 2009 by operating segment are as follows (in thousands): Commercial Financial Services Institutional Financial Services Personal Financial Services Total Balances as of January1, 2009 $ 42,999 $ 25,988 $ 35,937 $ 104,924 Acquisition of J.D. Clark Co., Inc. 19,476 19,476 Other goodwill acquired during period 5,875 1,355 7,230 Other (154 ) (120 ) (274 ) Balances as of December31,2009 $ 42,845 $ 51,339 $ 37,172 $ 131,356 Balances as of January1, 2010 $ 42,845 $ 51,339 $ 37,172 $ 131,356 Balances as of March31, 2010 $ 42,845 $ 51,339 $ 37,172 $ 131,356 Following are the intangible assets that continue to be subject to amortization as of March31, 2010 and December31, 2009 (in thousands): As of March31, 2010 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Core deposit intangible assets $ 36,497 $ 25,035 $ 11,462 Other intangible assets 44,680 10,752 33,928 Other intangible assets acquired during period 1,264 19 1,245 Total other intangible assets 45,944 10,771 35,173 Total intangible assets $ 82,441 $ 35,806 $ 46,635 As of December 31, 2009 Core deposit intangible assets $ 36,497 $ 24,444 $ 12,053 Other intangible assets 9,151 6,812 2,315 Other intangible assets acquired from the acquisition of J.D. Clark 24,831 2,278 22,553 Other intangible assets acquired during period 10,699 182 10,541 Total other intangible assets 44,681 9,272 35,409 Total intangible assets $ 81,178 $ 33,716 $ 47,462 Following is the aggregate amortization expense recognized in each period (in thousands): ThreeMonthsEnded March31, 2010 2009 Aggregate amortization expense $ 2,091 $ 976 Estimated amortization expense of intangible assets on future years (in thousands): For the nine months ended December31, 2010 $ 6,100 For the year ended December31, 2011 7,248 For the year ended December31, 2012 6,132 For the year ended December31, 2013 5,177 For the year ended December31, 2014 4,563

Other Comprehensive Income

Other Comprehensive Income
	3 Months Ended Mar. 31, 2010
Other Comprehensive Income	7. Other Comprehensive Income The Companys only component of other comprehensive income for the three months ended March31, 2010 and 2009 was the net unrealized gains and losses on available for sale securities (in thousands): ThreeMonthsEndedMarch31, 2010 2009 Change in unrealized holding gains, net $ (670 ) $ 8,568 Less: Reclassification adjustments for gains included in income (5,382 ) (42 ) Net unrealized holding (losses) gains (6,052 ) 8,526 Income tax benefit (expense) 2,229 (3,156 ) Other comprehensive income $ (3,823 ) $ 5,370

Commitments, Contingencies and

Commitments, Contingencies and Guarantees
	3 Months Ended Mar. 31, 2010
Commitments, Contingencies and Guarantees	8. Commitments, Contingencies and Guarantees In the normal course of business, the Company is party to financial instruments with off-balance-sheet risk in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, commercial letters of credit, standby letters of credit, futures contracts, forward foreign exchange contracts and spot foreign exchange contracts. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheet. The contract or notional amount of those instruments reflects the extent of involvement the Company has in particular classes of financial instruments. Many of the commitments expire without being drawn upon, therefore, the total amount of these commitments does not necessarily represent the future cash requirements of the Company. The Companys exposure to credit loss in the event of nonperformance by the counterparty to the financial instruments for commitments to extend credit, commercial letters of credit, and standby letters of credit is represented by the contract or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The following table summarizes the Companys off-balance sheet financial instruments. Contract or Notional Amount (in thousands): March 31, 2010 December31, 2009 Commitments to extend credit for loans (excluding credit card loans) $ 1,764,927 $ 1,868,869 Commitments to extend credit under credit card loans 1,357,374 1,320,416 Commercial letters of credit 3,673 3,538 Standby letters of credit 306,918 308,866 Futures contracts 13,000 13,300 Forward foreign exchange contracts 60,080 69,342 Spot foreign exchange contracts 5,599 5,513 In the normal course of business, the Company and its subsidiaries are named defendants in various lawsuits and counter-claims. In the opinion of management, after consultation with legal counsel, none of these lawsuits are expected to have a materially adverse effect on the financial position, results of operations or cash flows of the Company.

Business Segment Reporting

Business Segment Reporting
	3 Months Ended Mar. 31, 2010
Business Segment Reporting	9. Business Segment Reporting The Company has strategically aligned its operations into the following three reportable segments (collectively, Business Segments): Commercial Financial Services, Institutional Financial Services, and Personal Financial Services. The Business Segments were redefined during the first quarter of 2010 to better organize the Companys business around customer needs. In 2009, the Business Segments were Commercial Banking and Lending, Payment and Technology Solutions, Banking Services, Consumer Services, Asset Management, and Fund Services. Business segment financial results produced by the Companys internal management accounting system are evaluated regularly by the Executive Committee in deciding how to allocate resources and assess performance for individual Business Segments. The management accounting system assigns balance sheet and income statement items to each business segment using methodologies that are refined on an ongoing basis. For comparability purposes, amounts in all periods are based on methodologies in effect at March31, 2010. The following summaries provide information about the activities of each segment: Commercial Financial Services resulted in combining Commercial Banking and Lending with Treasury Management (previously a component of Payment and Technology Solutions). Commercial Financial Services serves the commercial lending and leasing, capital markets, and treasury management needs of the Companys mid-market businesses and governmental entities by offering various products and services. Such services include commercial loans, letters of credit, loan syndication services, consultative services, and a variety of financial options for companies that need non-traditional banking services. Capital markets services include asset-based financing, asset securitization, equity and mezzanine financing, factoring, private and public placement of senior debt, as well as merger and acquisition consulting. Treasury management services include depository services, account reconciliation services, electronic fund transfer services, controlled disbursements, lockbox services, and remote deposit capture services. Institutional Financial Services is a combination of Banking Services, Fund Services, and Asset Management services provided to institutional clients. This segment also includes consumer credit card services, formerly included in Consumer Services, and commercial credit card, formerly included in Payment and Technology Solutions. Healthcare services, mutual fund cash management and international payments, previously included in Payment and Technology Solutions, are also included in this segment. Institutional Financial Services includes businesses such as the Companys institutional investment services functions, Scout Investment Advisors, UMB Fund Services, corporate trust and escrow services as well as correspondent banking, investment banking, and UMB Healthcare Services. Products and services include bond trading transactions, cash letter collections, FiServ account processing, investment portfolio accounting and safekeeping, reporting for asset/liability management, and Fed funds tr

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Fair Value Measurements	10. Fair Value Measurements The following table presents information about the Companys assets measured at fair value on a recurring basis as of March31, 2010, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Fair values determined by Level 1 inputs utilize quoted prices in active markets for identical assets and liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the hierarchy. In such cases, the fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Assets measured at fair value on a recurring basis as of March31, 2010 (in thousands): Fair Value Measurement at Reporting Date Using Description March31,2010 QuotedPricesin Active Markets for Identical Assets (Level 1) SignificantOther ObservableInputs (Level 2) Significant Unobservable Inputs(Level3) U.S. Treasury 400 400 U.S. Agencies 13,374 13,374 Mortgage-backed 1,227 1,227 State and political subdivisions 6,580 6,580 Trading - other 13,277 13,277 Trading securities 34,858 27,051 7,807 U.S. Treasury 808,757 808,757 U.S. Agencies 1,533,941 1,533,941 Mortgage-backed 1,445,351 1,445,351 State and political subdivisions 952,456 952,456 Available for sale securities 4,740,505 2,342,698 2,397,807 Total 4,775,363 2,369,764 2,405,599 The fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis is required to be disclosed. The following methods and assumptions were used to estimate the fair value of each class of financial instruments: Cash and Short-Term Investments The carrying amounts of cash and due from banks, federal funds sold and resell agreements are reasonable estimates of their fair values. Securities Available for Sale Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Trading Securities Fair values for trading securities (including financial futures), are based on quoted market prices wh