UMB Financial (UMBF) 8-K UMB Financial Corporation Reports First Quarter Net Income of $44.2 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 First Quarter Net Income of $44.2 Million

or $0.89 per diluted share

KANSAS CITY, Mo.(April 25, 2017) – UMB Financial Corporation (Nasdaq: UMBF), a diversified financial holding company, announced net income for the first quarter 2017 of $44.2 million or $0.89 per diluted share, compared to $42.9 million or $0.87 per diluted share in the fourth quarter 2016 (linked quarter) and $36.4 million or $0.74 per diluted share in the first quarter 2016. Such reported GAAP net income represents an increase of 2.9 percent on a linked-quarter basis and 21.4 percent compared to the first quarter 2016.

Net operating income, anon-GAAP financial measure which is reconciled to the nearest comparable GAAP measure later in this release, was $44.5 million or $0.89 per diluted share for the first quarter 2017, compared to $45.3 million or $0.91 per diluted share for the linked quarter and $38.7 million or $0.79 per diluted share for the first quarter 2016. These results represent a decrease of 1.8 percent on a linked-quarter basis and an increase of 14.9 percent compared to the first quarter 2016.

Summary of financial results	UMB Financial Corporation
(unaudited, dollars in thousands)

	Q1 2017			Q4 2016			Q1 2016
GAAP
Net income	$	44,181		$	42,934		$	36,403
Earnings per share (diluted)		0.89			0.87			0.74
Return on average assets		0.89	%		0.86	%		0.76	%
Return on average equity		9.04			8.58			7.54
Efficiency ratio		70.45	%		71.51	%		74.41	%
Non-GAAP
Net operating income	$	44,486		$	45,294		$	38,729
Operating earnings per share (diluted)		0.89			0.91			0.79
Operating return on average assets		0.89	%		0.90	%		0.81	%
Operating return on average equity		9.10			9.05			8.02
Operating efficiency ratio		70.27	%		70.07	%		72.89	%

“2017 is off to a solid start for UMB,” said Mariner Kemper, chairman and chief executive officer. “We continue to post double digit year-over-year loan growth, with average loans increasing 10.6 percent compared to the same period in 2016. This growth, along with our efforts to achieve an optimal mix of earning assets and increased loan yields, drove a 13.9 percent increase in net interest income. We are pleased with this continued growth, as well as our progress toward improved profitability.

“In addition, we announced last week an agreement to sell our Scout Investments business to Carillon Tower Advisers. This was a strategic business decision that will allow us to invest time, energy and capital resources into growing our core banking businesses.”

Summary of revenue UMB Financial Corporation

(unaudited, dollars in thousands)

	Q1 2017			Q4 2016			Q1 2016			CQ vs. LQ			CQ vs. PY
Net interest income	$	134,315		$	131,456		$	117,892		$	2,859		$	16,423
Noninterest income:
Trust and securities processing		60,404			60,431			59,485			(27	)		919
Trading and investment banking		7,542			5,040			4,630			2,502			2,912
Service charges on deposit accounts		22,075			20,949			21,461			1,126			614
Insurance fees and commissions		646			833			1,497			(187	)		(851	)
Brokerage fees		5,377			4,674			4,185			703			1,192
Bankcard fees		17,752			16,113			18,016			1,639			(264	)
Gains on sales of securities available for sale, net		468			—			2,933			468			(2,465	)
Equity (losses) earnings on alternative investments		(614	)		504			(381	)		(1,118	)		(233	)
Other		7,130			7,786			4,524			(656	)		2,606
Total noninterest income	$	120,780		$	116,330		$	116,350		$	4,450		$	4,430
Total Revenue	$	255,095		$	247,786		$	234,242		$	7,309		$	20,853
Net interest margin (FTE)		3.09	%		3.00	%		2.79	%
Total noninterest income as a % of total revenue		47.40	%		46.90	%		49.70	%

Net interest income

• On a linked quarter basis, the increase in net interest income was driven by a nine basis point improvement in net interest margin, coupled with a 2.1 percent, or $214.1 million, increase in average loans.

• Earning asset yields improved 14 basis points from the linked quarter, which was partially offset by an increase in the cost of interest-bearing liabilities of nine basis points. Average loan yields improved 13 basis points from the linked quarter to 4.09 percent, driven, in part, 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 10.6 percent or $1.0 billion increase in average loans as well as higher average loan yields, which increased 28 basis points from a year ago, primarily driven by favorable pricing and mix changes.

• For the first quarter 2017, average earning assets stood at $18.9 billion, an increase of 1.6 percent over the linked quarter and 4.7 percent over the first quarter 2016.

Noninterest income

• First quarter 2017 noninterest income increased $4.5 million, or 3.8 percent, on a linked quarter basis largely due to:

• a $2.4 million increase in unrealized gains on the company’s seed investments in certain Scout funds;

• a $1.1 million increase in deposit service charges primarily driven by the company’s healthcare business;

• a $0.7 million increase in interchange income and a $0.6 million decrease in retail and commercial card program rewards and rebates expense recorded within bankcard fees;

• which were partially offset by a $1.1 million decrease in equity earnings on alternative investments.

• Noninterest income improved $4.4 million, or 3.8 percent, compared to the same quarter in 2016 driven by:

• a $1.4 million increase in unrealized gains on the company’s seed investments in certain Scout funds and $0.7 million increase in bond underwriting fees, both recorded in trading and investment banking income;

• an increase in other noninterest income due to a $2.0 million increase in the fair value of company-owned life insurance;

• a $1.3 million increase in12b-1 income recorded in brokerage fees;

• which were partially offset by a $2.5 million decrease in gains onavailable-for-sale securities.

Summary of noninterest expense UMB Financial Corporation

(unaudited, dollars in thousands)

	Q1 2017		Q4 2016		Q1 2016		CQ vs. LQ			CQ vs. PY
Salaries and employee benefits	$	113,834	$	107,538	$	106,850	$	6,296		$	6,984
Occupancy, net		11,148		11,421		10,972		(273	)		176
Equipment		17,668		17,726		16,282		(58	)		1,386
Supplies and services		4,281		4,788		4,949		(507	)		(668	)
Marketing and business development		4,503		6,256		4,441		(1,753	)		62
Processing fees		11,301		11,045		11,462		256			(161	)
Legal and consulting		5,300		7,056		4,799		(1,756	)		501
Bankcard		4,903		4,558		5,815		345			(912	)
Amortization of other intangible assets		2,869		2,928		3,226		(59	)		(357	)
Regulatory fees		3,833		3,687		3,429		146			404
Other		9,126		9,321		8,219		(195	)		907
Total noninterest expense	$	188,766	$	186,324	$	180,444	$	2,442		$	8,322

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 $188.3 million for the first quarter 2017, an increase of $5.7 million, or 3.1 percent, compared to the linked quarter, and $11.5 million, or 6.5 percent, compared to the first quarter 2016.

• On a linked quarter GAAP basis, the $2.4 million, or 1.3 percent, increase in noninterest expense was driven by expected increases in payroll taxes, 401(k) benefits, and medical insurance expense offset, in part, by decreases in marketing and business development and legal and consulting expenses from elevated fourth quarter levels.

• The increase in noninterest expense of $8.3 million, or 4.6 percent, compared to the first quarter 2016 was primarily driven by:

• a $1.9 million increase in salary and wage expense, a $1.9 million increase in bonus and commission expense, and a $3.1 million increase in employee benefits partially driven by a $1.6 million increase in fair value adjustments on the company’s deferred compensation plan; and

• 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.

Income Taxes

• The Company’s effective tax rate was 22.9 percent for the quarter ended March 31, 2017 compared to 25.4 percent for the same period a year earlier. The decrease is primarily a result of an increase in excess tax benefits associated with stock compensation recorded in the first quarter of 2017 compared to the same period a year earlier.

Balance Sheet

• Average total assets for the first quarter 2017 were $20.2 billion compared to $19.9 billion for the linked quarter, and $19.3 billion for the same period in 2016.

Summary of average loans and leases UMB Financial Corporation

(unaudited, dollars in thousands)

	Q1		Q4		Q1		CQ vs.			CQ vs.
	2017		2016		2016		LQ			PY
Averages:
Commercial	$	4,397,675	$	4,369,173	$	4,252,016	$	28,502		$	145,659
Asset based loans		225,818		231,035		222,483		(5,217	)		3,335
Factoring loans		148,356		110,866		85,704		37,490			62,652
Commercial credit card		157,864		150,630		147,121		7,234			10,743
Real estate - construction		793,892		674,367		457,448		119,525			336,444
Real estate - commercial		3,157,363		3,089,946		2,730,483		67,417			426,880
Real estate - residential		567,611		553,770		472,711		13,841			94,900
Real estate - HELOC		697,010		713,528		733,755		(16,518	)		(36,745	)
Consumer credit card		249,489		271,909		270,965		(22,420	)		(21,476	)
Consumer other		125,835		146,779		135,400		(20,944	)		(9,565	)
Leases		39,221		34,020		42,205		5,201			(2,984	)
Total loans	$	10,560,134	$	10,346,023	$	9,550,291	$	214,111		$	1,009,843

• Average loans for the first quarter 2017, increased 2.1 percent, on a linked-quarter basis, and 10.6 percent, compared to first quarter 2016.

Summary of average securities UMB Financial Corporation

(unaudited, dollars in thousands)

	Q1		Q4		Q1		CQ vs.			CQ vs.
	2017		2016		2016		LQ			PY
Securities available for sale:
U.S. Treasury	$	83,302	$	182,891	$	353,501	$	(99,589	)	$	(270,199	)
U.S. Agencies		144,166		248,329		643,129		(104,163	)		(498,963	)
Mortgage-backed		3,753,733		3,586,040		3,606,221		167,693			147,512
State and political subdivisions		2,412,351		2,362,178		2,153,059		50,173			259,292
Corporates		66,840		67,100		80,082		(260	)		(13,242	)
Total securities available for sale	$	6,460,392	$	6,446,538	$	6,835,992	$	13,854		$	(375,600	)
Securities held to maturity:
State and political subdivisions		1,157,871		1,073,509		732,137		84,362			425,734
Trading securities		60,462		50,925		26,358		9,537			34,104
Other securities		67,988		66,567		64,207		1,421			3,781
Total securities	$	7,746,713	$	7,637,539	$	7,658,694	$	109,174		$	88,019

• 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)

	Q1			Q4			Q1			CQ vs.			CQ vs.
	2017			2016			2016			LQ			PY
Deposits:
Noninterest-bearing demand	$	5,998,943		$	6,193,787		$	6,014,820		$	(194,845	)	$	(15,878	)
Interest-bearing demand and savings		8,564,059			8,439,920			8,201,591			124,139			362,468
Time deposits		1,079,946			1,112,781			1,228,183			(32,834	)		(148,236	)
Total deposits	$	15,642,948		$	15,746,488		$	15,444,594		$	(103,540	)	$	198,354
Non-interest bearing deposits as % of total		38.3	%		39.3	%		38.9	%

• The cost of interest-bearing liabilities for the first quarter 2017 was 35 basis points, and total cost of funds including noninterest-bearing deposits was 22 basis points.

Capital information UMB Financial Corporation

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

	March 31, 2017			December 31, 2016			March 31, 2016
Total equity	$	2,010,878		$	1,962,384		$	1,948,333
Book value per common share		40.34			39.51			39.39
Regulatory capital:
Common equity Tier 1 capital	$	1,821,915		$	1,789,581		$	1,675,854
Tier 1 capital		1,821,915			1,789,581			1,675,854
Total capital		1,985,231			1,951,078			1,825,867
Regulatory capital ratios:
Common equity Tier 1 capital ratio	$	11.89	%		11.80	%		11.80	%
Tier 1 risk-based capital ratio		11.89			11.80			11.80
Total risk-based capital ratio		12.96			12.87			12.85
Tier 1 leverage ratio		9.11			9.09			8.78

Credit quality UMB Financial Corporation

(unaudited, dollars in thousands)

	Q1 2017			Q4 2016			Q3 2016			Q2 2016			Q1 2016
Net charge-offs (recoveries) - Commercial loans	$	5,283		$	1,127		$	5,538		$	(59	)	$	2,586
Net charge-offs (recoveries) - Real estate loans		125			3,373			(67	)		1,164			1,301
Net charge-offs - Consumer credit card loans		1,815			1,692			1,658			1,575			1,781
Net charge-offs - Consumer other loans		103			63			133			52			77
Net charge-offs - Total loans		7,326			6,255			7,262			2,732			5,745
Net loan charge-offs as a % of total average loans		0.28	%		0.24	%		0.28	%		0.11	%		0.24	%
Loans over 90 days past due	$	3,369		$	3,365		$	2,678		$	4,700		$	3,334
Loans over 90 days past due as a % of total loans		0.03	%		0.03	%		0.03	%		0.05	%		0.03	%
Nonaccrual and restructured loans	$	56,594		$	70,259		$	79,607		$	58,423		$	54,933
Nonaccrual and restructured loans as a % of total loans		0.53	%		0.67	%		0.77	%		0.58	%		0.57	%
Provision for loan losses	$	9,000		$	7,500		$	13,000		$	7,000		$	5,000

• Nonperforming loans, defined as restructured loans on nonaccrual and all other nonaccrual loans, decreased $13.7 million from the linked quarter and increased $1.7 million from the prior year.

Divestiture Subsequent Event

On April 20, 2017, the company announced the execution of an agreement to sell 100 percent of the stock of Scout Investments, Inc. (Scout), its institutional investment management subsidiary with $27.9 billion in assets under management as of March 31, 2017 to Carillon Tower Advisers, a unit of Raymond James Financial, for $172.5 million in cash, subject to purchase price adjustments at closing. The company plans to use the proceeds from the transaction to support its current growth strategies. See the company’s current report Form8-K filed with the Securities Exchange Commission on April 20, 2017 for additional information. The transaction did not meet the requirements to be accounted for as a discontinued operation for the March 31, 2017 reporting period but will be presented as a discontinued operation prospectively. The following table shows the company’s income statement components from continuing operations and income from discontinued operations (Scout) for the previous financial periods listed below on apro-forma basis to give effect to the sale of Scout. Thepro-forma financial results give effect to the sale of Scout for each of the previous financial periods as if the sale of Scout had occurred at the beginning of each period.

Consolidated Condensed Supplemental Information UMB Financial Corporation

(unaudited, dollars in thousands)

	Full Year						Q1		Q2		Q3		Q4			Q1
	2014		2015		2016		2016		2016		2016		2016			2017
From continuing operations:
Net interest income	$	350,055	$	412,067	$	495,323	$	117,892	$	121,210	$	124,765	$	131,456		$	134,315
Provision for loan losses		17,000		15,500		32,500		5,000		7,000		13,000		7,500			9,000
Noninterest income		368,235		370,659		402,511		97,965		102,774		103,542		98,230			102,917
Noninterest expense		582,942		639,437		667,297		165,406		168,556		165,350		167,985			173,950
Income before taxes		118,348		127,789		198,037		45,451		48,428		49,957		54,201			54,282
Income tax expense		27,502		31,549		44,755		11,190		12,052		10,624		10,889			12,407
Income - continuing operations		90,846		96,240		153,282		34,261		36,376		39,333		43,312			41,875
Income before taxes - discontinued ops		47,715		31,496		8,967		3,347		1,886		3,973		(239	)		3,047
Income tax expense - discontinued ops		17,906		11,663		3,448		1,205		744		1,360		139			741
Income - discontinued operations		29,809		19,833		5,519		2,142		1,142		2,613		(378	)		2,306
Net Income	$	120,655	$	116,073	$	158,801	$	36,403	$	37,518	$	41,946	$	42,934		$	44,181

Conference Call

The company plans to host a conference call to discuss its first quarter 2017 earnings results on Wednesday, April 26, 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 1Q 2017 Conference Call

A replay of the conference call may be heard through May 10, 2017, by calling (toll-free)877-344-7529 or (U.S.)412-317-0088. The replay pass code required for playback is 10103480. 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 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 cumulative 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, 2016, 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)

	March 31,
	2017			2016
	(unaudited)			(unaudited)
Assets
Loans	$	10,757,236		$	9,699,631
Allowance for loan losses		(93,323	)		(80,398	)
Net loans		10,663,913			9,619,233
Loans held for sale		1,934			4,830
Investment securities:
Available for sale		6,551,593			6,883,312
Held to maturity		1,206,639			804,652
Trading securities		75,494			26,779
Other securities		67,910			64,591
Total investment securities		7,901,636			7,779,334
Federal funds and resell agreements		196,467			170,824
Interest-bearing due from banks		374,570			401,961
Cash and due from banks		373,671			325,446
Premises and equipment, net		282,398			279,079
Accrued income		97,035			90,002
Goodwill		228,396			228,396
Other intangibles, net		31,622			43,556
Other assets		424,495			360,252
Total assets	$	20,576,137		$	19,302,913
Liabilities
Deposits:
Noninterest-bearing demand	$	6,202,246		$	6,202,026
Interest-bearing demand and savings		8,622,219			8,178,712
Time deposits under $250,000		594,967			727,709
Time deposits of $250,000 or more		475,752			309,926
Total deposits		15,895,184			15,418,373
Federal funds and repurchase agreements		2,390,364			1,681,723
Short-term debt		—			5,006
Long-term debt		76,104			85,238
Accrued expenses and taxes		142,987			116,034
Other liabilities		60,620			48,206
Total liabilities		18,565,259			17,354,580
Shareholders’ Equity
Common stock		55,057			55,057
Capital surplus		1,033,225			1,018,492
Retained earnings		1,174,587			1,057,433
Accumulated other comprehensive (loss) income, net		(44,159	)		32,468
Treasury stock		(207,832	)		(215,117	)
Total shareholders’ equity		2,010,878			1,948,333
Total liabilities and shareholders’ equity	$	20,576,137		$	19,302,913

Consolidated Statements of Income UMB Financial Corporation

(dollars in thousands except share and per share data)

	Three Months Ended March 31,
	2017			2016
	(unaudited)			(unaudited)
Interest Income
Loans	$	106,560		$	90,544
Securities:
Taxable interest		19,190			19,357
Tax-exempt interest		17,183			12,735
Total securities income		36,373			32,092
Federal funds and resell agreements		919			507
Interest-bearing due from banks		551			891
Trading securities		287			52
Total interest income		144,690			124,086
Interest Expense
Deposits		5,966			4,055
Federal funds and repurchase agreements		3,469			1,230
Other		940			909
Total interest expense		10,375			6,194
Net interest income		134,315			117,892
Provision for loan losses		9,000			5,000
Net interest income after provision for loan losses		125,315			112,892
Noninterest Income
Trust and securities processing		60,404			59,485
Trading and investment banking		7,542			4,630
Service charges on deposits		22,075			21,461
Insurance fees and commissions		646			1,497
Brokerage fees		5,377			4,185
Bankcard fees		17,752			18,016
Gains on sale of securities available for sale, net		468			2,933
Equity losses on alternative investments		(614	)		(381	)
Other		7,130			4,524
Total noninterest income		120,780			116,350
Noninterest Expense
Salaries and employee benefits		113,834			106,850
Occupancy, net		11,148			10,972
Equipment		17,668			16,282
Supplies, postage and telephone		4,281			4,949
Marketing and business development		4,503			4,441
Processing fees		11,301			11,462
Legal and consulting		5,300			4,799
Bankcard		4,903			5,815
Amortization of other intangibles		2,869			3,226
Regulatory fees		3,833			3,429
Other		9,126			8,219
Total noninterest expense		188,766			180,444
Income before income taxes		57,329			48,798
Income tax provision		13,148			12,395
Net income	$	44,181		$	36,403
Per Share Data
Net income - basic	$	0.90		$	0.75
Net income – diluted		0.89			0.74
Dividends		0.255			0.245
Weighted average shares outstanding		49,109,872			48,756,433
Weighted average shares outstanding – diluted		49,829,508			49,016,400

Consolidated Statements of Comprehensive Income UMB Financial Corporation

(dollars in thousands)

	Three Months Ended March 31,
	2017			2016
	(unaudited)			(unaudited)
Net Income	$	44,181		$	36,403
Other comprehensive income, net of tax:
Unrealized gains on securities:
Change in unrealized holding gains, net		22,271			65,312
Less: Reclassifications adjustment for gains included in net income		(468	)		(2,933	)
Change in unrealized gains on securities during the period		21,803			62,379
Change in unrealized gains (losses) on derivatives		246			(4,140	)
Income tax expense		(8,666	)		(22,053	)
Other comprehensive income		13,383			36,186
Comprehensive income	$	57,564		$	72,589

Consolidated Statements of Shareholders’ Equity UMB Financial Corporation

(dollars in thousands, except per share data)

									Accumulated
									Other
	Common		Capital			Retained			Comprehensive			Treasury
(unaudited)	Stock		Surplus			Earnings			Income (Loss)			Stock			Total
Balance - January 1, 2016	$	55,057	$	1,019,889		$	1,033,990		$	(3,718	)	$	(211,524	)	$	1,893,694
Total comprehensive income		—		—			36,403			36,186			—			72,589
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		—		2,047			—			—			—			2,047
Sale of treasury stock		—		123			—			—			140			263
Exercise of stock options		—		1,294			—			—			2,519			3,813
Cumulative effect adjustment		—		1,338			(856	)		—			—			482
Balance – March 31, 2016	$	55,057	$	1,018,492		$	1,057,433		$	32,468		$	(215,117	)	$	1,948,333
(unaudited)
Balance - January 1, 2017	$	55,057	$	1,033,419		$	1,142,887		$	(57,542	)	$	(211,437	)	$	1,962,384
Total comprehensive income		—		—			44,181			13,383			—			57,564
Cash dividends ($0.255 per share)		—		—			(12,481	)		—			—			(12,481	)
Purchase of treasury stock		—		—			—			—			(4,028	)		(4,028	)
Issuance of equity awards		—		(4,140	)		—			—			4,611			471
Recognition of equity based compensation		—		2,861			—			—			—			2,861
Sale of treasury stock		—		150			—			—			117			267
Exercise of stock options		—		935			—			—			2,905			3,840
Balance – March 31, 2017	$	55,057	$	1,033,225		$	1,174,587		$	(44,159	)	$	(207,832	)	$	2,010,878

Average Balances / Yields and Rates UMB Financial Corporation

(tax - equivalent basis)

(unaudited, dollars in thousands)

	Three Months Ended March 31,
	2017						2016
	Average Balance			Average Yield/Rate			Average Balance			Average Yield/Rate
Assets
Loans, net of unearned interest	$	10,560,134			4.09	%	$	9,550,291			3.81	%
Securities:
Taxable		4,198,795			1.85			4,826,822			1.61
Tax-exempt		3,487,456			3.07			2,805,514			2.81
Total securities		7,686,251			2.40			7,632,336			2.05
Federal funds and resell agreements		238,201			1.56			146,791			1.39
Interest-bearing due from banks		309,125			0.72			648,635			0.55
Trading securities		60,462			2.45			26,358			1.01
Total earning assets		18,854,173			3.31			18,004,411			2.93
Allowance for loan losses		(93,106	)					(80,820	)
Other assets		1,473,282						1,411,260
Total assets	$	20,234,349					$	19,334,851
Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	9,644,005			0.25	%	$	9,429,774			0.17	%
Federal funds and repurchase agreements		2,329,630			0.60			1,696,555			0.29
Borrowed funds		76,468			4.99			92,558			3.95
Total interest-bearing liabilities		12,050,103			0.35			11,218,887			0.22
Noninterest-bearing demand deposits		5,998,943						6,014,820
Other liabilities		202,248						159,883
Shareholders’ equity		1,983,055						1,941,261
Total liabilities and shareholders’ equity	$	20,234,349					$	19,334,851
Net interest spread					2.96	%					2.71	%
Net interest margin					3.09						2.79

Business Segment Information UMB Financial Corporation

(unaudited, dollars in thousands)

	Three Months Ended March 31, 2017
	Bank		Institutional Investment Management		Asset Servicing		Total
Net interest income	$	131,663	$	—	$	2,652	$	134,315
Provision for loan losses		9,000		—		—		9,000
Noninterest income		79,215		19,254		22,311		120,780
Noninterest expense		150,251		17,676		20,839		188,766
Income (loss) before taxes		51,627		1,578		4,124		57,329
Income tax expense (benefit)		11,861		345		942		13,148
Net income (loss)	$	39,766	$	1,233	$	3,182	$	44,181
Average assets	$	19,341,000	$	61,000	$	832,000	$	20,234,000
	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		75,417		18,425		22,508		116,350
Noninterest expense		142,967		17,266		20,211		180,444
Income before taxes		42,721		1,159		4,918		48,798
Income tax expense		10,855		287		1,253		12,395
Net income	$	31,866	$	872	$	3,665	$	36,403
Average assets	$	17,885,000	$	63,000	$	1,387,000	$	19,335,000

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
	March 31, 2017			December 31, 2016			March 31, 2016
Net income (GAAP)	$	44,181		$	42,934		$	36,403
Adjustments:
Fair value adjustments on contingent consideration (i)		—			—			67
Acquisition expenses (ii)		—			547			3,043
Non-acquisition severance expense (iii)		476			415			524
Marketing agent termination costs (iv)		—			2,725			—
Tax-impact of adjustments (v)		(171	)		(1,327	)		(1,308	)
TotalNon-GAAP adjustments (net of tax)		305			2,360			2,326
Net operating income(Non-GAAP)	$	44,486		$	45,294		$	38,729
Earnings per share as reported - diluted	$	0.89		$	0.87		$	0.74
Fair value adjustments on contingent consideration (i)		—			—			—
Acquisition expenses (ii)		—			0.01			0.07
Non-acquisition severance expense (iii)		0.01			0.01			0.01
Marketing agent termination costs (iv)		—			0.05			—
Tax-impact of adjustments (v)		(0.01	)		(0.03	)		(0.03	)
Operating earnings per share - diluted	$	0.89		$	0.91		$	0.79
GAAP
Return on average assets		0.89	%		0.86	%		0.76	%
Return on average equity		9.04			8.58			7.54
Non-GAAP
Operating return on average assets		0.89	%		0.90	%		0.81	%
Operating return on average equity		9.10			9.05			8.02

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

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

	Three Months Ended
	March 31, 2017			December 31, 2016			March 31, 2016
Noninterest expense	$	188,766		$	186,324		$	180,444
Adjustments to arrive at operating noninterest expense(pre-tax):
Fair value adjustments on contingent consideration (i)		—			—			67
Acquisition expenses (ii)		—			547			3,043
Non-acquisition severance expense (iii)		476			415			524
Marketing agent termination costs (iv)		—			2,725			—
TotalNon-GAAP adjustments(pre-tax)		476			3,687			3,634
Operating noninterest expense	$	188,290		$	182,637		$	176,810
Noninterest expense	$	188,766		$	186,324		$	180,444
Less: Amortization of other intangibles		2,869			2,928			3,226
Noninterest expense, net of amortization of other intangibles (numerator A)	$	185,897		$	183,396		$	177,218
Operating noninterest expense	$	188,290		$	182,637		$	176,810
Less: Amortization of other intangibles		2,869			2,928			3,226
Operating expense, net of amortization of other intangibles (numerator B)	$	185,421		$	179,709		$	173,584
Net interest income (tax equivalent) (vi)	$	143,572		$	140,147		$	124,744
Noninterest income		120,780			116,330			116,350
Less: Gains on sales of securities available for sale, net		468			—			2,933
Total (denominator A)	$	263,884		$	256,477		$	238,161
Efficiency ratio (numerator A/denominator A)		70.45	%		71.51	%		74.41	%
Operating efficiency ratio (numerator B/denominator A)		70.27			70.07			72.89

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

(ii) Represents expenses related to acquisitions.

(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 $9.3 million, $8.7 million, and $6.9 million for the three months ended March 31, 2017, December 31, 2016, and March 31, 2016, respectively.