UMB Financial (UMBF) 8-K Results of Operations and Financial Condition

Exhibit 99.1

UMB Financial Corporation	News Release
1010 Grand Boulevard
Kansas City, MO 64106
816.860.7000 umb.com

UMB Financial Corporation Reports First Quarter 2016 Earnings of $36.2 million,

or $0.74 per Diluted Share

KANSAS CITY, Mo.(April 26, 2016) – UMB Financial Corporation (Nasdaq: UMBF), a diversified financial holding company, announced earnings for the first quarter 2016 of $36.2 million or $0.74 per diluted share, compared to $29.6 million or $0.60 per diluted share in the fourth quarter 2015 (linked quarter) and $33.8 million or $0.74 per diluted share during the first quarter 2015.

On a non-GAAP operating basis, which is reconciled to comparable GAAP financial measures later in this release, net operating income for the first quarter 2016 was $38.6 million or $0.79 per diluted share, compared to $34.2 million or $0.70 per diluted share on a linked quarter basis and $33.0 million or $0.73 per diluted share for the first quarter 2015.

Summary of financial results	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q1 2016			Q4 2015			Q1 2015
GAAP
Net income	$	36,245		$	29,643		$	33,765
Earnings per share (diluted)		0.74			0.60			0.74
Return on average assets		0.75	%		0.63	%		0.81	%
Return on average equity		7.51			6.15			8.18
Efficiency ratio		74.54			77.21			75.68
Non-GAAP
Net operating income	$	38,571		$	34,234		$	33,032
Operating earnings per share (diluted)		0.79			0.70			0.73
Operating return on average assets		0.80	%		0.72	%		0.80	%
Operating return on average equity		7.99			7.10			8.00
Operating efficiency ratio		73.01			74.11			76.21

“UMB began the year by posting another quarter of double-digit year-over-year loan growth and making good progress against our expense initiatives implemented in 2015,” said Mariner Kemper, chairman and chief executive officer. “Total loan balances increased 29.4 percent from March 31, 2015 to March 31, 2016. Loans produced by legacy UMB lenders increased 16.0 percent during that period, once again outpacing industry averages. In addition, we recognized savings of $4.9 million in the first quarter related to our efficiency initiative. I am pleased with the results we’ve posted and look forward to our continued growth.”

Summary of revenue							UMB Financial Corporation
(unaudited, dollars in thousands)
										Dollar Change
	Q1 2016			Q4 2015			Q1 2015			Q116 vs. Q415			Q116 vs. Q115
Net interest income	$	117,892		$	114,454		$	90,358		$	3,438		$	27,534
Noninterest income:
Trust and securities processing	$	59,485		$	62,194		$	67,299			(2,709	)		(7,814	)
Trading and investment banking		4,630			5,559			6,122			(929	)		(1,492	)
Service charges on deposit accounts		21,461			21,631			21,541			(170	)		(80	)
Insurance fees and commissions		1,497			894			570			603			927
Brokerage fees		4,185			3,005			2,854			1,180			1,331
Bankcard fees		18,016			17,369			16,183			647			1,833
Gains on sales of securities available for sale, net		2,933			1,998			7,336			935			(4,403	)
Equity losses on alternative investments		(381	)		(5,189	)		(842	)		4,808			461
Other		4,524			5,138			4,144			(614	)		380
Total noninterest income	$	116,350		$	112,599		$	125,207		$	3,751		$	(8,857	)
Total Revenue	$	234,242		$	227,053		$	215,565		$	7,189		$	18,677
Net interest margin		2.79	%		2.76	%		2.46	%
Total noninterest income as a percentage of total revenue		49.7			49.6			58.1

Net interest income

• The improved net interest income in the first quarter 2016, compared to the same quarter in 2015, was driven by an increase in average loans of $2.1 billion and higher average loan yields, which increased 32 basis points to 3.81 percent.

• For the first quarter 2016, average earning assets stood at $18.0 billion, an increase of 3.6 percent over the linked quarter and 14.2 percent over the first quarter 2015. The acquisition of Marquette Financial Companies (Marquette) added earning assets with an acquired value of $1.2 billion on May 31, 2015.

• Net interest margin for the first quarter 2016, which increased 33 basis points on a year-over-year basis, was driven by the addition of Marquette’s higher-yielding loans in addition to changes in the company’s earning asset mix.

Noninterest income

• The improvement in noninterest income over the linked quarter was driven by a change in equity losses on alternative investments of $4.8 million. This increase was partially offset by a decrease in trust and securities processing income due primarily to a $2.5 million, or 22.3 percent decrease in advisory fee income from the Scout Funds.

• Noninterest income decreased in the first quarter 2016, compared to the first quarter 2015, primarily due to a decrease in trust and securities processing income driven by a $7.6 million, or 47.1 percent, decrease in advisory fee income from the Scout Funds.

Noninterest expense					UMB Financial Corporation
(unaudited, dollars in thousands)
							Dollar Change
	Q1 2016		Q4 2015		Q1 2015		Q116 vs. Q415			Q116 vs. Q115
Salaries and employee benefits	$	107,150	$	103,617	$	98,537	$	3,533		$	8,613
Occupancy, net		10,972		11,791		10,010		(819	)		962
Equipment		16,282		16,723		14,172		(441	)		2,110
Supplies and services		4,949		4,280		4,325		669			624
Marketing and business development		4,441		6,816		4,618		(2,375	)		(177	)
Processing fees		11,462		13,096		12,783		(1,634	)		(1,321	)
Legal and consulting		4,799		7,447		4,378		(2,648	)		421
Bankcard		5,815		5,301		4,768		514			1,047
Amortization of other intangible assets		3,226		3,283		2,755		(57	)		471
Regulatory fees		3,429		3,320		2,756		109			673
Other		8,219		6,406		5,311		1,813			2,908
Total noninterest expense	$	180,744	$	182,080	$	164,413	$	(1,336	)	$	16,331

Noninterest expense

• On a linked quarter basis, the decrease in noninterest expense was primarily due to decreases in marketing and business development and legal and consulting. These decreases were offset, in part, by an increase in employee benefits expense.

• The increase in noninterest expense compared to the first quarter 2015 was primarily driven by:

• increased salaries and employee benefits, which included $8.3 million in Marquette salaries and benefits, $0.8 million in Marquette-related severance and $0.5 million of non-Marquette related severance for the first quarter 2016;

• higher equipment expense, which increased 14.9 percent year-over-year for computer and hardware costs related to investments for regulatory requirements, cyber security and the ongoing modernization of our core systems; and

• an increase in other noninterest expense, driven by $2.3 million in positive fair value adjustments on contingent consideration liabilities in the first quarter 2015 compared to a $0.1 million charge in the first quarter 2016.

• Acquisition expenses recognized during the first quarter 2016 totaled $3.0 million, comprised of $1.0 million of human resource costs, $1.1 million of technology integration, and $0.9 million of professional fees and other integration costs. For comparison, acquisition expenses were $3.4 million for the fourth quarter 2015 and $0.8 million for the first quarter 2015.

• On a non-GAAP basis, operating noninterest expense, which excludes the impact of acquisition expenses and other items as reconciled later in this release, was $177.1 million for the first quarter 2016, an increase of $2.2 million, or 1.3 percent, compared to the linked quarter, and $11.6 million, or 7.0 percent, compared to the first quarter 2015. The year-over-year increase is primarily due to $9.1 million in Marquette salaries and benefits present in the first quarter 2016.

Balance Sheet Summary of loans and leases					UMB Financial Corporation
(unaudited, dollars in thousands)
							Dollar Change
	March 31, 2016		December 31, 2015		March 31, 2015		Q116 vs. Q415			Q116 vs. Q115
Loans:
Commercial	$	4,347,068	$	4,205,736	$	3,808,551	$	141,332		$	538,517
Asset-based		212,669		219,244		—		(6,575	)		212,669
Factoring		88,534		90,686		—		(2,152	)		88,534
Commercial credit card		146,031		125,361		129,972		20,670			16,059
Real estate – construction		497,504		416,568		256,277		80,936			241,227
Real estate – commercial		2,767,233		2,662,772		1,943,057		104,461			824,176
Real estate – residential		485,722		492,227		330,234		(6,505	)		155,488
Real estate – HELOC		724,303		729,963		630,850		(5,660	)		93,453
Consumer credit card		270,558		291,570		284,694		(21,012	)		(14,136	)
Consumer other		116,971		154,777		75,856		(37,806	)		41,115
Leases		43,038		41,857		38,817		1,181			4,221
Total loans	$	9,699,631	$	9,430,761	$	7,498,308	$	268,870		$	2,201,323

• Average total assets for the first quarter 2016 were $19.3 billion compared to $16.8 billion for the same period in 2015, an increase of $2.5 billion, or 14.9 percent.

• Actual loans stood at $9.7 billion at March 31, 2016, an increase of $268.9 million, or 2.9 percent, on a linked quarter basis, and $2.2 billion, or 29.4 percent, compared to first quarter 2015.

• Actual loans originated through legacy UMB channels increased $1.2 billion, or 16.0 percent year-over-year primarily driven by a $485.7 million increase in commercial real estate loans and a $436.5 million increase in commercial loans.

• At March 31, 2016, loans acquired and originated through legacy Marquette channels totaled $997.9 million, comprised of $338.5 million in commercial real estate loans, $212.7 million in asset-based loans, $121.1 million in construction real estate loans, $95.7 million in residential real estate loans, $88.5 million in factoring loans, and $102.0 million in commercial loans.

Summary of securities					UMB Financial Corporation
(unaudited, dollars in thousands)
							Dollar Change
	March 31, 2016		December 31, 2015		March 31, 2015		Q116 vs. Q415			Q116 vs. Q115
Securities available for sale:
U.S. Treasury	$	354.261	$	349,779	$	428,311	$	4,482		$	(74,050	)
U.S. Agencies		593,769		666,389		856,881		(72,620	)		(263,112	)
Mortgage-backed		3,668,538		3,572,446		3,343,521		96,092			325,017
State and political subdivisions		2,186,602		2,138,413		2,049,487		48,189			137,115
Corporates		80,142		79,922		108,801		220			(28,659	)
Total securities available for sale		6,883,312		6,806,949		6,787,001		76,363			96,311
Securities held to maturity
State and political subdivisions		804,652		667,106		346,885		137,546			457,767
Trading Securities		26,779		29,617		29,380		(2,838	)		(2,601	)
Other securities		64,591		65,198		67,200		(607	)		(2,609	)
Total securities	$	7,779,334	$	7,568,870	$	7,230,466	$	210,464		$	548,868

• The growth in the company’s held to maturity securities portfolio is attributed to increased activity in private placement bonds, primarily used to refinance existing revenue bonds in the healthcare and education sectors.

Summary of deposits							UMB Financial Corporation
(unaudited, dollars in thousands)
							Dollar Change
	March 31, 2016		December 31, 2015		March 31, 2015		Q116 vs. Q415			Q116 vs. Q115
Deposits:
Noninterest-bearing demand	$	6,202,026	$	6,306,895	$	5,617,788	$	(104,869	)	$	584,238
Interest-bearing demand and savings		8,178,712		7,529,972		6,668,991		648,740			1,509,721
Time deposits under $250,000		727,709		771,973		620,644		(44,264	)		107,065
Time deposits of $250,000 or more		309,926		483,912		248,865		(173,986	)		61,061
Total deposits	$	15,418,373	$	15,092,752	$	13,156,288	$	325,621		$	2,262,085

• At March 31, 2016, noninterest-bearing demand deposits were 40.2 percent of total deposits.

• Deposit balances from the legacy Marquette channels totaled $744.1 million at March 31, 2016.

Capital information				UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
	March 31, 2016			December 31, 2015			March 31, 2015
Total equity	$	1,947,959		$	1,893,694		$	1,682,376
Book value per common share		39.38			38.34			36.76
Regulatory capital:
Common equity Tier 1 capital	$	1,675,854		$	1,664,815		$	1,444,625
Tier 1 capital		1,675,854			1,681,222			1,444,625
Total capital		1,825,867			1,814,705			1,524,206
Regulatory capital ratios:
Common equity Tier 1 capital ratio		11.80	%		11.74	%		12.91	%
Tier 1 risk-based capital ratio		11.80			11.86			12.91
Total risk-based capital ratio		12.85			12.80			13.62
Tier 1 leverage ratio		8.78			9.08			8.69

• The year-over-year increase in total equity is primarily attributable to the common stock issuance associated with the acquisition of Marquette of $179.7 million at May 31, 2015.

Credit quality										UMB Financial Corporation
(unaudited, dollars in thousands)
	Q1 2016			Q4 2015			Q3 2015			Q2 2015			Q1 2015
Net charge-offs – Commercial loans	$	2,586		$	178		$	636		$	2,999		$	(398	)
Net charge-offs – Real estate loans		1,301			(50	)		(65	)		(9	)		17
Net charge-offs – Consumer credit card loans		1,781			1,628			1,524			1,627			1,974
Net charge-offs – Consumer other loans		77			130			97			141			68
Net charge-offs – Total loans		5,745			1,886			2,192			4,758			1,661
Net loan charge-offs as a percentage of total average loans		0.24	%		0.08	%		0.10	%		0.24	%		0.09	%
Loans over 90 days past due	$	3,334		$	7,324		$	2,552		$	7,645		$	5,170
Loans over 90 days past due as a percentage of total loans		0.03	%		0.08	%		0.03	%		0.09	%		0.07	%
Nonaccrual and restructured loans	$	54,933		$	61,152		$	49,955		$	37,649		$	29,187
Nonaccrual and restructured loans as a percentage of total loans		0.57	%		0.65	%		0.55	%		0.42	%		0.39	%

• Nonperforming loans, defined as nonaccrual and restructured loans, decreased $6.2 million from the linked quarter and increased $25.7 million from the same quarter in 2015.

Efficiency Initiatives

In 2015, the company announced efficiency initiatives with cost savings expected to be recognized as follows: $6.8 million in 2015, $22.6 million in 2016, and annualized savings of $32.9 million in 2017 and beyond. As an update, the company recognized $9.5 million of these cost savings in 2015, and $4.9 million in the first quarter 2016, and expects to recognize an additional $15.9 million in the remainder of 2016 and annualized savings of $32.9 million beginning in 2017.

Conference Call

The company plans to host a conference call to discuss its first quarter 2016 earnings results on April 27, 2016 at 8:30 a.m. (CT). Interested parties may access the call by dialing (toll-free) 877-267-8760 or (U.S.) 412-542-4148 and requesting to join the UMB Financial call. The live call can also be accessed by visiting the investor relations area ofumbfinancial.com or by using the following the link:

UMB Financial 1Q 2016 Conference Call

A replay of the conference call may be heard through May 12, 2016, by calling (toll-free) 877-344-7529 or (U.S.) 412-317-0088. The replay pass code required for playback is 10083904. The call replay may also be accessed via the company’s websiteumbfinancial.com by visiting the investor relations area.

Non-GAAP Financial Information

In this release, we provide information using net operating income, operating earnings per share (operating EPS), operating return on average equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, and operating efficiency ratio, all of which are non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles (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 and operating efficiency ratio—and the 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- and severance-related items that management does not believe reflect the company’s fundamental operating performance.

Net operating income for the relevant period is defined as GAAP net income, adjusted to reflect the after-tax impact of excluding the following: (i) fair value adjustments to contingent consideration for the acquisitions of Prairie Capital Management, LLC and Reams Asset Management Company, (ii) expenses related to the acquisition of Marquette, and (iii) non-acquisition severance expense. Operating EPS (basic and diluted) is calculated as net operating income, divided by the company’s average number of shares outstanding (basic and diluted) 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 in clauses i-iii above. Operating efficiency ratio is calculated as the company’s operating noninterest expense, less amortization of other intangibles, divided by the company’s tax equivalent net interest income plus noninterest income less gains on sales of securities available for sale.

Forward-Looking Statements:

This release contains, and our other communications may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts—such as our statements about expected cost savings and other results of efficiency initiatives and our statements about asset sensitivity. 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, 2015, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the SEC. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent 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 diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors. For more information, visitumb.com,umbfinancial.com,blog.umb.com or follow us on Twitter at @UMBBank, Facebook at facebook.com/UMBBank and LinkedIn at linkedin.com/company/umb-bank.

Non-GAAP Financial Measures	UMB Financial Corporation
Net operating income non-GAAP reconciliation:
(unaudited, dollars in thousands, except per share data)
	Three Months Ended
	March 31,
	2016			2015
Net income (GAAP)	$	36,245		$	33,765
Adjustments (net of tax):
Fair value adjustments on contingent consideration (i)		43			(1,449	)
Acquisition expenses (ii)		1,948			490
Non-acquisition severance expense (iii)		335			226
Total Non-GAAP adjustments (net of tax)		2,326			(733	)
Net operating income (Non-GAAP)	$	38,571		$	33,032
GAAP
Earnings per share - basic	$	0.74		$	0.75
Earnings per share - diluted		0.74			0.74
Return on average assets		0.75	%		0.81	%
Return on average equity		7.51	%		8.18	%
Non-GAAP
Operating earnings per share - basic	$	0.79		$	0.73
Operating earnings per share - diluted		0.79			0.73
Operating return on average assets		0.80	%		0.80	%
Operating return on average equity		7.99	%		8.00	%

Operating noninterest expense and operating efficiency ratio non-GAAP reconciliation

(unaudited, dollars in thousands)

	Three Months Ended
	March 31,
	2016			2015
Noninterest expense (GAAP)	$	180,744		$	164,413
Adjustments (pre-tax):
Fair value adjustments on contingent consideration (i)		67			(2,264	)
Acquisition expenses (ii)		3,043			766
Non-acquisition severance expense (iii)		524			353
Total Non-GAAP adjustments (pre-tax)		3,634			(1,145	)
Operating noninterest expense		177,110			165,558
Noninterest expense		180,744			164,413
Less: Amortization of other intangibles		3,226			2,755
Noninterest expense, net of amortization of other intangibles (numerator A)		177,518			161,658
Operating noninterest expense (Non-GAAP)		177,110			165,558
Less: Amortization of other intangibles		3,226			2,755
Operating expense, net of amortization of other intangibles (numerator B)		173,884			162,803
Net interest income (tax equivalent) (iv)		124,744			95,750
Noninterest income		116,350			125,207
Less: Gains on sales of securities available for sale, net		2,933			7,336
Total (denominator A)	$	238,161		$	213,621
Efficiency ratio (numerator A/denominator A)		74.54	%		75.68	%
Operating efficiency ratio (numerator B/denominator A)		73.01	%		76.21	%

(i) Represents fair value adjustments to contingent consideration for the acquisitions of Prairie Capital Management, LLC and Reams Asset Management Company.

(ii) Represents expenses related to the acquisition of Marquette Financial Companies (Marquette).

(iii) Represents non-acquisition severance expense related to UMB-legacy employees. Severance expense for Marquette-legacy employees is included in item (ii).

(iv) Tax-exempt interest income has been adjusted to a tax equivalent basis. The amount of such adjustment was an addition to net interest income of $6.9 million and $5.4 million for the three months ended March 31, 2016 and 2015, respectively.

Consolidated Balance Sheets	UMB Financial Corporation
(unaudited, dollars in thousands)
	March 31,
	2016			2015
Assets
Loans	$	9,699,631		$	7,498,308
Allowance for loan losses		(80,398	)		(77,479	)
Net loans		9,619,233			7,420,829
Loans held for sale		4,830			3,141
Investment securities:
Available for sale		6,883,312			6,787,001
Held to maturity		804,652			346,885
Trading securities		26,779			29,380
Other securities		64,591			67,200
Total investment securities		7,779,334			7,230,466
Federal funds and resell agreements		170,824			24,379
Interest-bearing due from banks		401,961			769,321
Cash and due from banks		325,446			449,315
Premises and equipment, net		279,079			263,542
Accrued income		90,002			80,083
Goodwill		228,396			209,758
Other intangibles, net		43,556			41,236
Other assets		360,252			238,053
Total assets	$	19,302,913		$	16,730,123
Liabilities
Deposits:
Noninterest-bearing demand	$	6,202,026		$	5,617,788
Interest-bearing demand and savings		8,178,712			6,668,991
Time deposits under $250,000		727,709			620,644
Time deposits of $250,000 or more		309,926			248,865
Total deposits		15,418,373			13,156,288
Federal funds and repurchase agreements		1,681,723			1,719,080
Short-term debt		5,006			—
Long-term debt		85,238			7,600
Accrued expenses and taxes		116,408			135,758
Other liabilities		48,206			29,021
Total liabilities		17,354,954			15,047,747
Shareholders’ Equity
Common stock		55,057			55,057
Capital surplus		1,017,420			892,658
Retained earnings		1,058,131			986,923
Accumulated other comprehensive income		32,468			26,810
Treasury stock		(215,117	)		(279,072	)
Total shareholders’ equity		1,947,959			1,682,376
Total liabilities and shareholders’ equity	$	19,302,913		$	16,730,123

Consolidated Statements of Income	UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
	Three Months Ended
	March 31,
	2016			2015
Interest Income
Loans	$	90,544		$	64,232
Securities:
Taxable Interest		19,357			18,808
Tax-exempt interest		12,735			9,915
Total securities income		32,092			28,723
Federal funds and resell agreements		507			51
Interest-bearing due from banks		891			852
Trading securities		52			95
Total interest income		124,086			93,953
Interest Expense
Deposits		4,055			3,048
Federal funds and repurchase agreements		1,230			492
Other		909			55
Total interest expense		6,194			3,595
Net interest income		117,892			90,358
Provision for loan losses		5,000			3,000
Net interest income after provision for loan losses		112,892			87,358
Noninterest Income
Trust and securities processing		59,485			67,299
Trading and investment banking		4,630			6,122
Service charges on deposits		21,461			21,541
Insurance fees and commissions		1,497			570
Brokerage fees		4,185			2,854
Bankcard fees		18,016			16,183
Gains on sales of securities available for sale, net		2,933			7,336
Equity losses on alternative investments		(381	)		(842	)
Other		4,524			4,144
Total noninterest income		116,350			125,207
Noninterest Expense
Salaries and employee benefits		107,150			98,537
Occupancy, net		10,972			10,010
Equipment		16,282			14,172
Supplies and services		4,949			4,325
Marketing and business development		4,441			4,618
Processing fees		11,462			12,783
Legal and consulting		4,799			4,378
Bankcard		5,815			4,768
Amortization of other intangible assets		3,226			2,755
Regulatory fees		3,429			2,756
Other		8,219			5,311
Total noninterest expense		180,744			164,413
Income before income taxes		48,498			48,152
Income tax provision		12,253			14,387
Net income	$	36,245		$	33,765
Per Share Data
Net income- basic	$	0.74		$	0.75
Net income- diluted		0.74			0.74
Dividends		0.245			0.235
Weighted average shares outstanding – basic		48,756,433			45,000,831
Weighted average shares outstanding – diluted		49,090,232			45,437,654

Statements of Consolidated Comprehensive Income	UMB Financial Corporation
(unaudited, dollars in thousands)
	Three Months Ended March 31,
	2016			2015
Net Income	$	36,245		$	33,765
Other comprehensive income, net of tax:
Unrealized gains on securities:
Change in unrealized holding gains, net		65,312			32,676
Less: Reclassifications adjustment for gains included in net income		(2,933	)		(7,336	)
Change in unrealized gains during the period		62,379			25,340
Change in unrealized losses on derivatives		(4,140	)		—
Income tax expense		(22,053	)		(9,536	)
Other comprehensive income		36,186			15,804
Comprehensive income	$	72,431		$	49,569

Consolidated Statements of Shareholders’ Equity												UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
									Accumulated
									Other
	Common		Capital			Retained			Comprehensive			Treasury
	Stock		Surplus			Earnings			Income (Loss)			Stock			Total
Balance - January 1, 2015	$	55,057	$	894,602		$	963,911		$	11,006		$	(280,818	)	$	1,643,758
Total comprehensive income		—		—			33,765			15,804			—			49,569
Cash dividends ($0.235 per share)		—		—			(10,753	)		—			—			(10,753	)
Purchase of treasury stock		—		—			—			—			(5,309	)		(5,309	)
Issuance of equity awards		—		(5,848	)		—			—			6,308			460
Recognition of equity based compensation		—		2,609			—			—			—			2,609
Net tax benefit related to equity compensation plans		—		585			—			—			—			585
Sale of treasury stock		—		141			—			—			94			235
Exercise of stock options		—		569			—			—			653			1,222
Balance – March 31, 2015	$	55,057	$	892,658		$	986,923		$	26,810		$	(279,072	)	$	1,682,376
Balance - January 1, 2016	$	55,057	$	1,019,889		$	1,033,990		$	(3,718	)	$	(211,524	)	$	1,893,694
Total comprehensive income		—		—			36,245			36,186			—			72,431
Cash dividends ($0.245 per share)		—		—			(12,104	)		—			—			(12,104	)
Purchase of treasury stock		—		—			—			—			(12,880	)		(12,880	)
Issuance of equity awards		—		(6,199	)		—			—			6,628			429
Recognition of equity based compensation		—		2,347			—			—			—		��	2,347
Net tax deficiency related to equity compensation plans		—		(34	)		—			—			—			(34	)
Sale of treasury stock		—		123			—			—			140			263
Exercise of stock options		—		1,294			—			—			2,519			3,813
Balance – March 31, 2016	$	55,057	$	1,017,420		$	1,058,131		$	32,468		$	(215,117	)	$	1,947,959

Average Balances / Yields and Rates							UMB Financial Corporation
(tax - equivalent basis) (unaudited, dollars in thousands)
	Three Months Ended March 31,
	2016						2015
	Average			Average			Average			Average
	Balance			Yield/Rate			Balance			Yield/Rate
Assets
Loans, net of unearned interest	$	9,550,291			3.81	%	$	7,470,101			3.49	%
Securities:
Taxable		4,826,822			1.61			4,868,560			1.57
Tax-exempt		2,805,514			2.81			2,254,237			2.75
Total securities		7,632,336			2.05			7,122,797			1.94
Federal funds and resell agreements		146,791			1.39			34,340			0.60
Interest-bearing due from banks		648,635			0.55			1,107,862			0.31
Trading securities		26,358			1.01			30,221			1.84
Total earning assets		18,004,411			2.93			15,765,321			2.56
Allowance for loan losses		(80,820	)					(76,574	)
Other assets		1,411,260						1,143,208
Total assets	$	19,334,851					$	16,831,955
Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	9,429,744			0.17	%	$	7,602,258			0.16	%
Federal funds and repurchase agreements		1,696,555			0.29			1,710,908			0.12
Borrowed funds		92,558			3.95			8,331			2.68
Total interest-bearing liabilities		11,218,887			0.22			9,321,497			0.16
Noninterest-bearing demand deposits		6,014,820						5,660,893
Other liabilities		159,883						174,804
Shareholders’ equity		1,941,261						1,674,761
Total liabilities and shareholders’ equity	$	19,334,851					$	16,831,955
Net interest spread					2.71	%					2.40	%
Net interest margin					2.79						2.46

Business Segment Information					UMB Financial Corporation
(unaudited, dollars in thousands)
	Three Months Ended March 31, 2016
	Bank		Institutional Investment Management		Asset Servicing		Total
Net interest income	$	115,271	$	—	$	2,621	$	117,892
Provision for loan losses		5,000		—		—		5,000
Noninterest income		75,441		18,416		22,493		116,350
Noninterest expense		143,361		17,233		20,150		180,744
Income before taxes		42,351		1,183		4,964		48,498
Income tax expense		10,706		289		1,258		12,253
Net income	$	31,645	$	894	$	3,706	$	36,245
Average assets	$	17,885,000	$	63,000	$	1,387,000	$	19,335,000
	Three Months Ended March 31, 2015
	Bank		Institutional Investment Management		Asset Servicing		Total
Net interest income	$	89,360	$	1	$	997	$	90,358
Provision for loan losses		3,000		—		—		3,000
Noninterest income		74,689		27,084		23,434		125,207
Noninterest expense		125,178		17,961		21,274		164,413
Income before taxes		35,871		9,124		3,157		48,152
Income tax expense		10,715		2,750		922		14,387
Net income	$	25,156	$	6,374	$	2,235	$	33,765
Average assets	$	15,814,000	$	75,000	$	943,000	$	16,832,000