UMB Financial (UMBF) 8-K UMB Financial Corporation Reports Fourth Quarter Net Income of $42.9 Million

Exhibit 99.1

UMB Financial Corporation News Release

1010 Grand Boulevard

Kansas City, MO 64106

816.860.7000

umb.com

//FOR IMMEDIATE RELEASE//

Media Contact: Rachael Crocker: 816.860.7775

Investor Relations Contact: Kay Gregory: 816.860.7106

UMB Financial Corporation Reports Fourth Quarter Net Income of $42.9 Million

or $0.87 per diluted share and Record Full-Year 2016 Net Income of $158.8 Million

KANSASCITY,Mo.(Jan.24,2017) – UMB Financial Corporation (Nasdaq: UMBF), a diversified financial holding company, announced GAAP earnings for the fourth quarter 2016 of $42.9 million or $0.87 per diluted share, compared to $41.9 million or $0.85 per diluted share in the third quarter 2016 (linked quarter) and $29.6 million or $0.60 per diluted share in the fourth quarter 2015. These results represent an increase of 2.4 percent on a linked-quarter basis and 44.8 percent compared to the fourth quarter 2015. For the year ended Dec. 31, 2016, GAAP earnings were $158.8 million or $3.22 per diluted share, an increase of 36.8 percent compared to $116.1 million or $2.44 per diluted share for the year-ended Dec. 31, 2015.

Net operating income, anon-GAAP financial measure which is reconciled to the nearest comparable GAAP measure later in this release, was $45.3 million or $0.91 per diluted share for the fourth quarter 2016, compared to $43.0 million or $0.87 per diluted share for the linked quarter and $34.2 million or $0.70 per diluted share for the fourth quarter 2015. These results represent an increase of 5.4 percent on a linked-quarter basis and 32.3 percent compared to the fourth quarter 2015. Full year 2016 net operating income was $166.5 million or $3.38 per diluted share, an increase of 34.9 percent compared to $123.4 million or $2.59 per diluted share for the full year 2015.

Summary of financial results	UMB Financial Corporation
(unaudited, dollars in thousands)
										December			December
	Q4			Q3			Q4			YTD			YTD
	2016			2016			2015			2016			2015
GAAP
Net income	$	42,934		$	41,946		$	29,643		$	158,801		$	116,073
Earnings per share (diluted)		0.87			0.85			0.60			3.22			2.44
Return on average assets		0.86	%		0.85	%		0.63	%		0.81	%		0.65	%
Return on average equity		8.58			8.25			6.15			8.01			6.43
Efficiency ratio		71.5	%		70.2	%		77.2	%		72.4	%		77.6	%
Non-GAAP
Net operating income	$	45,294		$	42,985		$	34,234		$	166,474		$	123,360
Operating earnings per share (diluted)		0.91			0.87			0.70			3.38			2.59
Operating return on average assets		0.90	%		0.87	%		0.72	%		0.85	%		0.69	%
Operating return on average equity		9.05			8.46			7.10			8.39			6.83
Operating efficiency ratio		70.1	%		69.6	%		74.1	%		71.2	%		76.3	%

“Fourth quarter 2016 net income improved 2.4 percent, or $1.0 million, over the third quarter 2016,” said Mariner Kemper, chairman and chief executive officer. “These results were driven in part by a $164 million increase in average loans, which helped drive a 5.4 percent increase in net interest income. For the full year, we earned a record $158.8 million. 2016 was a year of unprecedented market activity. UMB’s stock posted a 66 percent improvement, outperforming the 26 percent return for the KBW Nasdaq Bank index. During the year, we fully integrated our acquisition of Marquette Financial Companies, executed on our expense initiative, and continued our history of solid loan growth. We are looking forward to 2017 and continuing to improve operating leverage and invest in our business for the future.”

Summary of revenue	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q4			Q3			Q4			CQ vs.			CQ vs.
	2016			2016			2015			LQ			PY
Net interest income	$	131,456		$	124,765		$	114,454		$	6,691		$	17,002
Noninterest income:
Trust and securities processing		60,431			60,218			62,194			213			(1,763	)
Trading and investment banking		5,040			6,114			5,559			(1,074	)		(519	)
Service charges on deposit accounts		20,949			21,832			21,631			(883	)		(682	)
Insurance fees and commissions		833			698			894			135			(61	)
Brokerage fees		4,674			4,712			3,005			(38	)		1,669
Bankcard fees		16,113			17,086			17,369			(973	)		(1,256	)
Gains on sales of securities available for sale, net		—			2,978			1,998			(2,978	)		(1,998	)
Equity earnings (losses) on alternative investments		504			1,594			(5,189	)		(1,090	)		5,693
Other		7,786			6,716			5,138			1,070			2,648
Total noninterest income	$	116,330		$	121,948		$	112,599		$	(5,618	)	$	3,731
Total Revenue	$	247,786		$	246,713		$	227,053		$	1,073		$	20,733
Net interest margin		3.00	%		2.87	%		2.76	%
Total noninterest income as a % of total revenue		46.9	%		49.4	%		49.6	%

Net interest income

• On a linked quarter basis, the increase in net interest income was driven by a 13 basis point improvement in net interest margin, coupled with a 6.5 percent annualized, or $164.2 million, increase in average loans.

• Earning asset yields improved 14 basis points from the linked quarter while the cost of interest-bearing liabilities increased one basis point to 0.26 percent. Average loan yields improved 10 basis points from the linked quarter to 3.96 percent, in part driven by favorablere-pricing and mix changes within the loan portfolio.

• On a year-over-year basis, the increase in net interest income was driven by a 12.5 percent or $1.1 billion increase in average loans as well as higher average loan yields, which increased 16 basis points from a year ago.

• For the fourth quarter 2016, average earning assets stood at $18.6 billion, an increase of 1.0 percent over the linked quarter and 6.8 percent over the fourth quarter 2015.

Noninterest income

• Fourth quarter 2016 noninterest income decreased $5.6 million, or 4.6 percent, on a linked quarter basis largely due to lower gains onavailable-for-sale securities and equity earnings on alternative investments, which decreased $3.0 million and $1.1 million, respectively.

• Noninterest income improved $3.7 million, or 3.3 percent, compared to the same quarter in 2015 driven by:

• a $5.7 million increase in equity earnings on alternative investments from improvements in the valuation of the underlying Prairie Capital Management (PCM) fund investments;

• a $1.5 million increase in12b-1 income recorded in brokerage fees;

• a $1.1 million increase in the fair value of company-owned life insurance, a $0.9 million increase in derivative income, and a $0.6 million gain on the sale of property recorded in other noninterest income;

• a $1.5 million increase in trust and securities processing income related to the company’s private wealth business; and

• partially offset by a decrease of $3.1 million, in advisory fee income from the Scout Funds recorded in trust and securities processing income and a $1.2 million decrease in bankcard fees driven by higher retail and commercial card program rewards and rebates expense.

Summary of Noninterest expense	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q4		Q3		Q4		CQ vs.			CQ vs.
	2016		2016		2015		LQ			PY
Salaries and employee benefits	$	107,538	$	109,369	$	103,617	$	(1,831	)	$	3,921
Occupancy, net		11,421		11,394		11,791		27			(370	)
Equipment		17,726		16,231		16,723		1,495			1,003
Supplies and services		4,788		4,624		4,280		164			508
Marketing and business development		6,256		5,332		6,816		924			(560	)
Processing fees		11,045		11,264		13,096		(219	)		(2,051	)
Legal and consulting		7,056		4,450		7,447		2,606			(391	)
Bankcard		4,558		5,015		5,301		(457	)		(743	)
Amortization of other intangible assets		2,928		2,992		3,283		(64	)		(355	)
Regulatory fees		3,687		3,370		3,320		317			367
Other		9,321		5,742		6,406		3,579			2,915
Total noninterest expense	$	186,324	$	179,783	$	182,080	$	6,541		$	4,244

Noninterest expense

• On anon-GAAP basis, operating noninterest expense, which excludes the impact of acquisition expenses and other items as reconciled later in this release, was $182.6 million for the fourth quarter 2016, an increase of $4.5 million, or 2.5 percent, compared to the linked quarter, and $7.7 million, or 4.4 percent, compared to the fourth quarter 2015.

• On a linked quarter GAAP basis, the $6.5 million, or 3.6 percent, increase in noninterest expense was driven by:

• a $2.7 millionnon-recurring fee paid for marketing agent termination costs within the company’s institutional investment management business and $0.7 million in operational losses within the bank segment, both of which were recorded in other noninterest expense;

• higher legal and consulting expenses driven by technology-related consulting services andyear-end billings from professional services firms;

• higher equipment expense for computer and hardware costs related to investments for regulatory requirements, cyber security, and the ongoing modernization of the company’s core systems;

• an increase in $0.9 million of bonus and commission expense driven, in part, by higherone- and three-year performance-related incentives in the company’s institutional management business; and

• partially offset by a $2.7 million decrease in salaries and employee benefits expense due to lower employee headcount and decreased benefits expense.

• The increase in noninterest expense of $4.2 million, or 2.3 percent, compared to the fourth quarter 2015 was primarily driven by:

• a $2.7 millionnon-recurring fee paid for marketing agent termination costs within the company’s institutional investment management business recorded in other noninterest expense;

• increased bonus and commission expense due to improved company performance;

• higher equipment expense for computer and hardware costs related to investments for regulatory requirements, cyber security, and the ongoing modernization of the company’s core systems; and

• partially offset by decreased processing fees paid to distributors of the Scout Funds.

Income Taxes

• The company’s full year effective tax rate as of Dec. 31, 2016 decreased to 23.3 percent, as compared to 27.1 percent for full year Dec. 31, 2015. The decrease is primarily attributable to an increase in federal tax credits and a larger portion of income earned from excludable life insurance policy gains.

Balance Sheet

• Average total assets for the fourth quarter 2016 were $19.9 billion compared to $18.8 billion for the same period in 2015, an increase of $1.2 billion, or 6.2 percent.

Summary of average loans and leases	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q4		Q3		Q4		CQ vs.			CQ vs.
	2016		2016		2015		LQ			PY
Averages:
Commercial	$	4,369,173	$	4,441,790	$	4,101,204	$	(72,617	)	$	267,969
Asset based loans		231,035		228,310		228,709		2,725			2,326
Factoring loans		110,866		101,731		93,535		9,135			17,331
Commercial credit card		150,630		166,617		125,361		(15,987	)		25,269
Real estate - construction		674,367		591,584		393,251		82,783			281,116
Real estate - commercial		3,089,946		2,976,666		2,573,135		113,280			516,811
Real estate - residential		553,770		505,721		478,653		48,049			75,117
Real estate - HELOC		713,528		735,527		725,640		(21,999	)		(12,112	)
Consumer credit card		271,909		262,937		303,887		8,972			(31,978	)
Consumer other		146,779		137,949		135,378		8,830			11,401
Leases		34,020		32,987		41,208		1,033			(7,188	)
Total loans	$	10,346,023	$	10,181,819	$	9,199,961	$	164,204		$	1,146,062

• Average loans for the fourth quarter 2016, increased 1.6 percent, on a linked-quarter basis, and 12.5 percent, compared to fourth quarter 2015.

Summary of average securities	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q4		Q3		Q4		CQ vs.			CQ vs.
	2016		2016		2015		LQ			PY
Securities available for sale:
U.S. Treasury	$	182,891	$	340,144	$	351,191	$	(157,253	)	$	(168,300	)
U.S. Agencies		248,329		369,022		682,418		(120,693	)		(434,089	)
Mortgage-backed		3,586,040		3,512,905		3,444,351		73,135			141,689
State and political subdivisions		2,362,178		2,314,875		2,117,875		47,303			244,303
Corporates		67,100		77,645		80,316		(10,545	)		(13,216	)
Total securities available for sale		6,446,538		6,614,591		6,676,151		(168,053	)		(229,613	)
Securities held to maturity:
State and political subdivisions		1,073,509		927,875		631,127		145,634			442,382
Trading securities		50,925		51,280		27,439		(355	)		23,486
Other securities		66,567		65,986		66,954		581			(387	)
Total securities	$	7,637,539	$	7,659,732	$	7,401,671	$	(22,193	)	$	235,868

• 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 average deposits	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q4			Q3			Q4			CQ vs.			CQ vs.
	2016			2016			2015			LQ			PY
Deposits:
Noninterest-bearing demand	$	6,193,787		$	5,690,838		$	6,734,309		$	502,949		$	(540,522	)
Interest-bearing demand and savings		8,439,920			8,276,491			7,285,061			163,429			1,154,859
Time deposits		1,112,781			1,154,762			1,243,147			(41,981	)		(130,366	)
Total deposits	$	15,746,488		$	15,122,091			15,262,517			624,397		$	483,971
Non-interest bearing deposits as % of total		39.3	%		37.6	%		44.1	%

• The cost of interest-bearing liabilities for the fourth quarter 2016 was 26 basis points, and total cost of funds including noninterest-bearing deposits was 13 basis points.

Full Year 2016 Financial Discussion

Full year results summary	UMB Financial Corporation
(unaudited, dollars in thousands)
					CY vs.
As of and for the years-ended December 31,	2016		2015		PY
Earnings - GAAP
Net interest income	$	495,323	$	412,067	$	83,256
Noninterest income		476,075		466,454		9,621
Noninterest expense		731,894		703,736		28,158
Net income		158,801		116,073		42,728
Average Balances
Loans	$	9,992,874	$	8,425,107	$	1,567,767
Total earnings assets		18,256,621		16,496,213		1,760,408
Total assets		19,592,685		17,786,442		1,806,243
Deposits		15,338,741		14,078,290		1,260,451
Total equity		1,983,749		1,805,856		177,893

• The 20.2 percent year-over-year increase in net interest income was driven by a volume variance of $63.0 million and a rate variance of $20.2 million. In 2016, average loan balances increased $1.6 billion and average loan yields increased 21 basis points.

• Full year noninterest income increased $9.6 million, or 2.1 percent, due to:

• a $14.9 million increase in equity earnings on alternative investments from improvements in the valuation of the underlying PCM fund investments;

• a $7.8 million increase in bank-owned and company-owned life insurance income recorded in other noninterest income;

• a $5.3 million increase in12b-1 income recorded in brokerage fees; and

• partially offset by a decrease in trust and securities processing income primarily due to a $22.9 million, or 40.9 percent, decrease in advisory fee income from the Scout Funds.

• Full year noninterest expense increased 28.2 million, or 4.0 percent, primarily due to increases in bonus and commission expense of $11.4 million, salary expense of $9.1 million, and deferred compensation plan fair-value adjustments of $5.1 million.

• On anon-GAAP basis, operating noninterest expense, which excludes the impact of acquisition expenses and other items as reconciled later in this release, was $719.9 million for full-year 2016, an increase of $27.6 million, or 4.0 percent, compared to the full-year 2015.

Capital information	UMB Financial Corporation
(unaudited, dollars in thousands, except per share data)
	December 31,			September 30,			December 31,
	2016			2016			2015
Total equity	$	1,962,384		$	2,024,628		$	1,893,694
Book value per common share		39.51			40.86			38.34
Regulatory capital:
Common equity Tier 1 capital	$	1,789,581			1,749,738			1,664,815
Tier 1 capital		1,789,581			1,749,738			1,681,222
Total capital		1,951,078			1,909,583			1,814,705
Regulatory capital ratios:
Common equity Tier 1 capital ratio		11.76	%		11.75	%		11.74	%
Tier 1 risk-based capital ratio		11.76			11.75			11.86
Total risk-based capital ratio		12.82			12.82			12.80
Tier 1 leverage ratio		9.09			8.99			9.08

Credit quality	UMB Financial Corporation
(unaudited, dollars in thousands)
	Q4			Q3			Q2			Q1			Q4
	2016			2016			2016			2016			2015
Net charge-offs (recoveries) - Commercial loans	$	1,127		$	5,538		$	(59	)	$	2,586		$	178
Net charge-offs (recoveries) - Real estate loans		3,373			(67	)		1,164			1,301			(50	)
Net charge-offs - Consumer credit card loans		1,692			1,658			1,575			1,781			1,628
Net charge-offs - Consumer other loans		63			133			52			77			130
Net charge-offs - Total loans	$	6,255		$	7,262		$	2,732		$	5,745		$	1,886
Net loan charge-offs as a % of total average loans		0.24	%		0.28	%		0.11	%		0.24	%		0.08	%
Loans over 90 days past due		3,365			2,678			4,700			3,334			7,324
Loans over 90 days past due as a % of total loans		0.03	%		0.03	%		0.05	%		0.03	%		0.08	%
Nonaccrual and restructured loans		70,259			79,607			58,423			54,933			61,152
Nonaccrual and restructured loans as a % of total loans		0.67	%		0.77	%		0.58	%		0.57	%		0.65	%
Provision for loan losses	$	7,500		$	13,000		$	7,000		$	5,000		$	5,000

• Nonperforming loans, defined as restructured loans on nonaccrual and all other nonaccrual loans, decreased $9.4 million from the linked quarter driven primarily due to the sale of one large commercial credit that migrated to nonperforming status last quarter.

Dividend Declaration

At the company’s quarterly board meeting, the Board of Directors declared a $0.255 per share quarterly cash dividend, payable on April 3, 2017, to shareholders of record at the close of business on March 10, 2017.

Conference Call

The company plans to host a conference call to discuss its fourth quarter andyear-end 2016 earnings results on Wednesday, Jan. 25, 2017, 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 4Q &Year-End 2016 Conference Call

A replay of the conference call may be heard through Feb. 8, 2017, by calling (toll-free)877-344-7529 or (U.S.)412-317-0088. The replay pass code required for playback is 10098797. 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 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, and operating efficiency ratio, all of which arenon-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 thenon-GAAP financial measures—net operating income, operating EPS, operating ROE, operating ROA, operating noninterest expense and operating efficiency ratio—and the nearest comparable GAAP financial measures are reconciled later in this release. The company believes that thesenon-GAAP financial measures and the reconciliations may be useful to investors because they adjust for fair value adjustments, acquisition- and severance-related items andone-time marketing agent termination costs 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 impact of excluding the following: (i) fair value adjustments on contingent consideration for the acquisitions of Prairie Capital Management, LLC (PCM) and Reams Asset Management Company (Reams), (ii) expenses related to acquisitions(iii) non-acquisition related severance expense (iv) expenses related to thebuy-out and termination of certain marketing and referral agreements in the company’s institutional investment management business, and (v) the tax impact of the previous adjustments. The company believes that the financial impact of excludingnon-acquisition related severance expense will be immaterial in the near future. It is excluded from certain GAAP financial measures as it has an unusually large impact on the company’s financial statements.

Operating EPS (basic and diluted) is calculated as earnings per share as reported, adjusted to reflect, on a per share basis, the impact of excluding thenon-GAAP adjustments described in clauses (i)-(v) 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 thepre-tax impact ofnon-GAAP adjustments described in clauses (i)-(iv) 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 revenue (tax equivalent net interest income plus noninterest income less gains on sales of securities available for sale, net).

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 reduced regulation, tax reform and our ability to capitalize on changes. 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 Form10-K for the year ended December 31, 2015, our subsequent Quarterly Reports on Form10-Q or Current Reports on Form8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (SEC). Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form10-K, Quarterly Report on Form10-Q, Current Report on Form8-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, payment solutions, 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 atfacebook.com/UMBBank and LinkedIn atlinkedin.com/company/umb-bank.

Consolidated Balance Sheets	UMB Financial Corporation
(dollars in thousands)

	December 31,
	2016			2015
	(unaudited)			(audited)
Assets
Loans	$	10,540,383		$	9,430,761
Allowance for loan losses		(91,649	)		(81,143	)
Net loans		10,448,734			9,349,618
Loans held for sale		5,279			589
Investment securities:
Available for sale		6,466,334			6,806,949
Held to maturity		1,115,932			667,106
Trading securities		39,536			29,617
Other securities		68,306			65,198
Total investment securities		7,690,108			7,568,870
Federal funds and resell agreements		324,327			173,627
Interest-bearing due from banks		715,823			522,877
Cash and due from banks		422,117			458,217
Premises and equipment, net		289,007			281,471
Accrued income		99,045			90,127
Goodwill		228,396			228,346
Other intangibles, net		34,491			46,782
Other assets		425,205			373,721
Total assets	$	20,682,532		$	19,094,245
Liabilities
Deposits:
Noninterest-bearing demand	$	6,654,584		$	6,306,895
Interest-bearing demand and savings		8,780,309			7,529,972
Time deposits under $250,000		613,589			771,973
Time deposits of $250,000 or more		522,132			483,912
Total deposits		16,570,614			15,092,752
Federal funds and repurchase agreements		1,856,937			1,818,062
Short-term debt		—			5,009
Long-term debt		76,772			86,070
Accrued expenses and taxes		172,967			161,245
Other liabilities		42,858			37,413
Total liabilities		18,720,148			17,200,551
Shareholders’ Equity
Common stock		55,057			55,057
Capital surplus		1,033,419			1,019,889
Retained earnings		1,142,887			1,033,990
Accumulated other comprehensive loss, net		(57,542	)		(3,718	)
Treasury stock		(211,437	)		(211,524	)
Total shareholders’ equity		1,962,384			1,893,694
Total liabilities and shareholders’ equity	$	20,682,532		$	19,094,245

Consolidated Statements of Income UMB Financial Corporation

(dollars in thousands except share and per share data)

	Three Months Ended					Year Ended
	December 31,					December 31,
	2016		2015			2016		2015
	(unaudited)		(unaudited)			(unaudited)		(audited)
Interest Income
Loans	$	102,961	$	88,011		$	386,274	$	308,325
Securities:
Taxable interest		18,339		18,858			73,560		75,327
Tax-exempt interest		16,139		11,756			57,516		43,598
Total securities income		34,478		30,614			131,076		118,925
Federal funds and resell agreements		769		320			2,708		697
Interest-bearing due from banks		569		595			2,341		2,356
Trading securities		233		75			632		378
Total interest income		139,010		119,615			523,031		430,681
Interest Expense
Deposits		5,119		3,836			17,936		14,269
Federal funds and repurchase agreements		1,774		396			6,524		1,785
Other		661		929			3,248		2,560
Total interest expense		7,554		5,161			27,708		18,614
Net interest income		131,456		114,454			495,323		412,067
Provision for loan losses		7,500		5,000			32,500		15,500
Net interest income after provision for loan losses		123,956		109,454			462,823		396,567
Noninterest Income
Trust and securities processing		60,431		62,194			239,879		262,056
Trading and investment banking		5,040		5,559			21,422		20,218
Service charges on deposits		20,949		21,631			86,662		86,460
Insurance fees and commissions		833		894			4,188		2,530
Brokerage fees		4,674		3,005			17,833		11,753
Bankcard fees		16,113		17,369			68,749		69,211
Gains on sale of securities available for sale, net		—		1,998			8,509		10,402
Equity earnings (loss) on alternative investments		504		(5,189	)		2,695		(12,188	)
Other		7,786		5,138			26,138		16,012
Total noninterest income		116,330		112,599			476,075		466,454
Noninterest Expense
Salaries and employee benefits		107,538		103,617			432,754		406,472
Occupancy, net		11,421		11,791			44,926		43,861
Equipment		17,726		16,723			67,271		63,533
Supplies, postage and telephone		4,788		4,280			19,080		18,579
Marketing and business development		6,256		6,816			22,342		23,730
Processing fees		11,045		13,096			45,235		51,328
Legal and consulting		7,056		7,447			21,242		26,390
Bankcard		4,558		5,301			20,757		20,288
Amortization of other intangibles		2,928		3,283			12,291		12,090
Regulatory fees		3,687		3,320			14,178		12,125
Other		9,321		6,406			31,818		25,340
Total noninterest expense		186,324		182,080			731,894		703,736
Income before income taxes		53,962		39,973			207,004		159,285
Income tax provision		11,028		10,330			48,203		43,212
Net income	$	42,934	$	29,643		$	158,801	$	116,073
Per Share Data
Net income - basic	$	0.88	$	0.61		$	3.25	$	2.46
Net income – diluted		0.87		0.60			3.22		2.44
Dividends		0.255		0.245			0.990		0.950
Weighted average shares outstanding		48,935,216		48,630,195			48,828,313		47,126,252
Weighted average shares outstanding – diluted		49,616,121		49,066,566			49,277,055		47,579,334

Consolidated Statements of Comprehensive (Loss) Income	UMB Financial Corporation
(dollars in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2016			2015			2016			2015
	(unaudited)			(unaudited)			(unaudited)			(audited)
Net Income	$	42,934		$	29,643		$	158,801		$	116,073
Other comprehensive loss, net of tax:
Unrealized gains (losses) on securities:
Change in unrealized holding losses, net		(168,433	)		(46,682	)		(77,794	)		(13,393	)
Less: Reclassifications adjustment for gains included in net income		—			(1,998	)		(8,509	)		(10,402	)
Change in unrealized losses on securities during the period		(168,433	)		(48,680	)		(86,303	)		(23,795	)
Change in unrealized gains (losses) on derivatives		7,161			(10	)		(516	)		(10	)
Income tax benefit		61,218			18,442			32,995			9,081
Other comprehensive loss		(100,054	)		(30,248	)		(53,824	)		(14,724	)
Comprehensive (loss) income	$	(57,120	)	$	(605	)	$	104,977		$	101,349

Consolidated Statements of Shareholders’ Equity	UMB Financial Corporation
(dollars in thousands, except per share data)

									Accumulated
									Other
	Common		Capital			Retained			Comprehensive			Treasury
(audited)	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		—		—			116,073			(14,724	)		—			101,349
Cash dividends ($0.95 per share)		—		—			(45,994	)		—			—			(45,994	)
Purchase of treasury stock		—		—			—			—			(8,457	)		(8,457	)
Issuance of equity awards		—		(3,278	)								3,737			459
Recognition of equity based compensation		—		10,292			—			—			—			10,292
Net tax benefit related to equity compensation plans		—		944			—			—			—			944
Sale of treasury stock		—		611			—			—			445			1,056
Exercise of stock options		—		4,083			—			—			6,467			10,550
Common stock issuance		—		112,635			—			—			67,102			179,737
Balance – December 31, 2015	$	55,057	$	1,019,889		$	1,033,990		$	(3,718	)	$	(211,524	)	$	1,893,694
(unaudited)
Balance - January 1, 2016	$	55,057	$	1,019,889		$	1,033,990		$	(3,718	)	$	(211,524	)	$	1,893,694
Total comprehensive income		—		—			158,801			(53,824	)		—			104,977
Cash dividends ($0.99 per share)		—		—			(49,048	)		—			—			(49,048	)
Purchase of treasury stock		—		—			—			—			(16,367	)		(16,367	)
Issuance of equity awards		—		(3,011	)		—			—			3,440			429
Recognition of equity based compensation		—		11,306			—			—			—			11,306
Sale of treasury stock		—		480			—			—			616			1,096
Exercise of stock options		—		3,417			—			—			12,398			15,815
Cumulative effect adjustment		—		1,338			(856	)		—			—			482
Balance – December 31, 2016	$	55,057	$	1,033,419		$	1,142,887		$	(57,542	)	$	(211,437	)	$	1,962,384

Average Balances / Yields and Rates UMB Financial Corporation

(tax - equivalent basis)

(unaudited, dollars in thousands)

	Three Months Ended December 31,
	2016						2015
	Average			Average			Average			Average
	Balance			Yield/Rate			Balance			Yield/Rate
Assets
Loans, net of unearned interest	$	10,346,023			3.96	%	$	9,199,961			3.80	%
Securities:
Taxable		4,232,002			1.72			4,704,102			1.59
Tax-exempt		3,354,612			2.94			2,670,130			2.71
Total securities		7,586,614			2.26			7,374,232			2.00
Federal funds and resell agreements		208,581			1.47			117,005			1.09
Interest-bearing due from banks		365,512			0.62			662,036			0.36
Trading securities		50,925			2.18			27,439			1.29
Total earning assets		18,557,655			3.17			17,380,673			2.88
Allowance for loan losses		(91,833	)					(78,906	)
Other assets		1,454,616						1,453,790
Total assets	$	19,920,438					$	18,755,557
Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	9,552,701			0.21	%	$	8,528,207			0.18	%
Federal funds and repurchase agreements		1,899,196			0.37			1,305,939			0.12
Borrowed funds		76,831			3.42			88,862			4.15
Total interest-bearing liabilities		11,528,728			0.26			9,923,008			0.21
Noninterest-bearing demand deposits		6,193,787						6,734,309
Other liabilities		206,576						185,586
Shareholders’ equity		1,991,347						1,912,654
Total liabilities and shareholders’ equity	$	19,920,438					$	18,755,557
Net interest spread					2.91	%					2.67	%
Net interest margin					3.00						2.76

Average Balances / Yields and Rates UMB Financial Corporation

(tax - equivalent basis)

(unaudited, dollars in thousands)

	Year Ended December 31,
	2016						2015
	Average			Average			Average			Average
	Balance			Yield/Rate			Balance			Yield/Rate
Assets
Loans, net of unearned interest	$	9,992,874			3.87	%	$	8,425,107			3.66	%
Securities:
Taxable		4,545,013			1.62			4,823,710			1.56
Tax-exempt		3,077,562			2.87			2,473,811			2.72
Total securities		7,622,575			2.12			7,297,521			1.95
Federal funds and resell agreements		188,572			1.44			76,108			0.92
Interest-bearing due from banks		410,163			0.57			664,752			0.35
Trading securities		42,437			1.85			32,725			1.46
Total earning assets		18,256,621			3.03			16,496,213			2.75
Allowance for loan losses		(85,201	)					(77,899	)
Other assets		1,421,265						1,368,128
Total assets	$	19,592,685					$	17,786,442
Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	9,432,720			0.19	%	$	8,150,588			0.18	%
Federal funds and repurchase agreements		2,005,631			0.33			1,590,776			0.11
Borrowed funds		85,658			3.79			59,174			4.33
Total interest-bearing liabilities		11,524,009			0.24			9,800,538			0.19
Noninterest-bearing demand deposits		5,906,021						5,927,702
Other liabilities		178,906						252,346
Shareholders’ equity		1,983,749						1,805,856
Total liabilities and shareholders’ equity	$	19,592,685					$	17,786,442
Net interest spread					2.79	%					2.56	%
Net interest margin					2.88						2.64

Business Segment Information	UMB Financial Corporation
(unaudited, dollars in thousands)

	Three Months Ended December 31, 2016
	Bank		Institutional Investment Management			Asset Servicing		Total
Net interest income	$	128,869	$	—		$	2,587	$	131,456
Provision for loan losses		7,500		—			—		7,500
Noninterest income		75,393		18,858			22,079		116,330
Noninterest expense		145,959		20,448			19,917		186,324
Income (loss) before taxes		50,803		(1,590	)		4,749		53,962
Income tax expense (benefit)		10,145		(102	)		985		11,028
Net income (loss)	$	40,658	$	(1,488	)	$	3,764	$	42,934
Average assets	$	18,821,000	$	60,000		$	1,039,000	$	19,920,000
	Three Months Ended December 31, 2015
	Bank		Institutional Investment Management			Asset Servicing		Total
Net interest income	$	112,647	$	—		$	1,807	$	114,454
Provision for loan losses		5,000		—			—		5,000
Noninterest income		69,202		20,882			22,515		112,599
Noninterest expense		144,525		18,690			18,865		182,080
Income before taxes		32,324		2,192			5,457		39,973
Income tax expense		8,346		573			1,411		10,330
Net income	$	23,978	$	1,619		$	4,046	$	29,643
Average assets	$	17,660,000	$	65,000		$	1,031,000	$	18,756,000

	Year Ended December 31, 2016
	Bank		Institutional Investment Management		Asset Servicing		Total
Net interest income	$	484,716	$	—	$	10,607	$	495,323
Provision for loan losses		32,500		—		—		32,500
Noninterest income		311,309		75,822		88,944		476,075
Noninterest expense		577,683		73,442		80,769		731,894
Income before taxes		185,842		2,380		18,782		207,004
Income tax expense		43,039		798		4,366		48,203
Net income	$	142,803	$	1,582	$	14,416	$	158,801
Average assets	$	18,314,000	$	61,000	$	1,218,000	$	19,593,000
	Year Ended December 31, 2015
	Bank		Institutional Investment Management		Asset Servicing		Total
Net interest income	$	406,884	$	—	$	5,183	$	412,067
Provision for loan losses		15,500		—		—		15,500
Noninterest income		279,897		95,064		91,493		466,454
Noninterest expense		552,514		71,498		79,724		703,736
Income before taxes		118,767		23,566		16,952		159,285
Income tax expense		32,208		6,469		4,535		43,212
Net income	$	86,559	$	17,097	$	12,417	$	116,073
Average assets	$	16,732,000	$	69,000	$	985,000	$	17,786,000

Non-GAAP Financial Measures UMB Financial Corporation

Net operating income and operating earnings per sharenon-GAAP reconciliations:

(unaudited, dollars in thousands, except share and per share data)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2016			2015			2016			2015
Net income (GAAP)	$	42,934		$	29,643		$	158,801		$	116,073
Adjustments:
Fair value adjustments on contingent consideration (i)		—			469			67			(3,008	)
Acquisition expenses (ii)		547			3,427			5,020			9,833
Non-acquisition severance expense (iii)		415			3,278			4,177			4,561
Marketing agent termination costs (iv)		2,725			—			2,725			—
Tax-impact of adjustments (v)		(1,327	)		(2,583	)		(4,316	)		(4,099	)
TotalNon-GAAP adjustments (net of tax)		2,360			4,591			7,673			7,287
Net operating income(Non-GAAP)	$	45,294		$	34,234		$	166,474		$	123,360
Earnings per share as reported - diluted	$	0.87		$	0.60		$	3.22		$	2.44
Fair value adjustments on contingent consideration (i)		—			0.01			—			(0.06	)
Acquisition expenses (ii)		0.01			0.07			0.11			0.20
Non-acquisition severance expense (iii)		0.01			0.07			0.08			0.10
Marketing agent termination costs (iv)		0.05			—			0.06			—
Tax-impact of adjustments (v)		(0.03	)		(0.05	)		(0.09	)		(0.09	)
Operating earnings per share - diluted	$	0.91		$	0.70		$	3.38		$	2.59
GAAP
Return on average assets		0.86	%		0.63	%		0.81	%		0.65	%
Return on average equity		8.58			6.15			8.01			6.43
Non-GAAP
Operating return on average assets		0.90	%		0.72	%		0.85	%		0.69	%
Operating return on average equity		9.05			7.10			8.39			6.83

Operating noninterest expense and operating efficiency ratio non-GAAP reconciliations: UMB Financial Corporation

(unaudited, dollars in thousands except share and per share data)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2016			2015			2016			2015
Noninterest expense	$	186,324		$	182,080		$	731,894		$	703,736
Adjustments to arrive at operating noninterest expense(pre-tax):
Fair value adjustments on contingent consideration (i)		—			469			67			(3,008	)
Acquisition expenses (ii)		547			3,427			5,020			9,833
Non-acquisition severance expense (iii)		415			3,278			4,177			4,561
Marketing agent termination costs (iv)		2,725			—			2,725			—
TotalNon-GAAP adjustments(pre-tax)		3,687			7,174			11,989			11,386
Operating noninterest expense	$	182,637		$	174,906		$	719,905		$	692,350
Noninterest expense	$	186,324		$	182,080		$	731,894		$	703,736
Less: Amortization of other intangibles		2,928			3,283			12,291			12,090
Noninterest expense, net of amortization of other intangibles (numerator A)	$	183,396		$	178,797		$	719,603		$	691,646
Operating noninterest expense	$	182,637		$	174,906		$	719,905		$	692,350
Less: Amortization of other intangibles		2,928			3,283			12,291			12,090
Operating expense, net of amortization of other intangibles (numerator B)	$	179,709		$	171,623		$	707,614		$	680,260
Net interest income (tax equivalent) (vi)	$	140,147		$	120,966		$	526,337		$	435,852
Noninterest income		116,330			112,599			476,075			466,454
Less: Gains on sales of securities available for sale, net		—			1,998			8,509			10,402
Total (denominator A)	$	256,477		$	231,567		$	993,903		$	891,904
Efficiency ratio (numerator A/denominator A)		71.51	%		77.21	%		72.40	%		77.55	%
Operating efficiency ratio (numerator B/denominator A)		70.07			74.11			71.20			76.27

(i) Represents fair value adjustments to contingent consideration for the acquisitions of PCM and Reams.

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

(iii) Representsnon-acquisition severance expense related toUMB-legacy employees as management excludes severance expense from its internal evaluation of company performance. Severance expense for Marquette-legacy employees is included in item (ii).

(iv) Represents expenses related to thebuy-out and termination of certain marketing and referral agreements in the company’s institutional investment management business.

(v) Calculated using the company’s marginal tax rate of 36%.

(vi) 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 $8.7 million and $6.5 million for the three months ended December 31, 2016 and 2015, respectively and $31.0 million and $23.8 million for the year ended December 31, 2016 and 2015, respectively.