About UMB Financial

UMB Financial Corporation operates as a financial holding company. The company provides banking services and asset servicing to its customers in the United States and around the globe. The company’s national bank, UMB Bank, National Association (the bank), has its principal office in Missouri and also has branches in Arizona, Colorado, Illinois, Kansas, Nebraska, Oklahoma, and Texas. The bank offers a full complement of banking products and other services to commercial, retail, government, and correspondent-bank customers, including a wide range of asset-management, trust, bankcard, and cash-management services. The company also owns UMB Fund Services, Inc. (UMBFS), which is a significant nonbank subsidiary that has offices in Milwaukee, Wisconsin, Chadds Ford, Pennsylvania, and Ogden, Utah. UMBFS provides fund accounting, transfer agency, and other services to mutual fund and alternative-investment groups. Business Segments The company’s products and services are grouped into three segments: Commercial Banking, Institutional Banking, and Personal Banking. Commercial Banking serves the commercial banking and treasury management needs of the company’s small to middle-market businesses through a variety of products and services. Such services include commercial loans, commercial real estate financing, commercial credit cards, letters of credit, loan syndication services, and consultative services. In addition, the company’s specialty lending group offers a variety of business solutions, including asset-based lending, mezzanine debt and minority equity investments. Treasury management services include depository services, account reconciliation and cash management tools, such as accounts payable and receivable solutions, electronic fund transfer and automated payments, controlled disbursements, lockbox services, and remote deposit capture services. Institutional Banking is a combination of banking services, fund services, asset management services, and healthcare services provided to institutional clients. This segment also provides fixed income sales, trading and underwriting, corporate trust and escrow services, as well as institutional custody. Institutional Banking includes UMBFS, which provides fund administration and accounting, investor services and transfer agency, and other services to mutual fund and alternative investment groups. Healthcare services provides healthcare payment solutions, including custodial services for health savings accounts (HSAs) and private label, multipurpose debit cards to insurance carriers, third-party administrators, software companies, employers, and financial institutions. Personal Banking combines consumer banking and wealth management services offered to clients and delivered through personal relationships and the company’s bank branches, ATM network and internet banking. Products offered include deposit accounts, retail credit cards, private banking, installment loans, home equity lines of credit, and residential mortgages. The range of client services extends from a basic checking account to estate planning and trust services and includes private banking, brokerage services, and insurance services in addition to a full spectrum of investment advisory, trust, and custody services. Loans Commercial and Industrial Equipment, Accounts Receivable, and Inventory: General commercial and industrial loans are secured by working capital assets and non-real estate assets. The general purpose of these loans is for financing capital expenditures and current operations for commercial and industrial entities. Agriculture: Agricultural loans are secured by non-real estate agricultural assets. These include shorter-term assets, such as equipment, crops, and livestock. Overdrafts: Commercial overdrafts are typically short-term and unsecured. Some commercial borrowers tie their overdraft obligation to their line of credit, so any draw on the line of credit will satisfy the overdraft. Specialty Lending Asset-based Lending: General asset-based loans are secured by accounts receivable, inventory, equipment, and real estate. The purpose of these loans is for financing current operations for commercial customers. The repayment of debt is reliant upon collection of the accounts receivable within 30 to 90 days or converting assets into cash or through goods and services being sold and collected. Commercial Real Estate Owner-occupied: Owner-occupied loans are secured by commercial real estate. These loans are often longer tenured and susceptible to multiple economic cycles. The loans rely on the owner-occupied operations to service debt which cover a broad spectrum of industries. Real estate debt can carry a significant amount of leverage for a borrower to maintain. Non-owner-occupied: Non-owner-occupied loans are secured by commercial real estate. Farmland: Farmland loans are secured by real estate used for agricultural purposes, such as crop and livestock production. 5+ Multi-family: 5+ multi-family loans are secured by a multi-family residential property. 1-4 Family Construction: 1-4 family construction loans are secured by 1-4 family residential real estate and are in the process of construction or improvements being made. General Construction: General construction loans are secured by commercial real estate in the process of construction or improvements being made and their repayment is dependent on the collateral’s completion. Consumer Real Estate HELOC: HELOC loans are revolving lines of credit secured by 1-4 family residential property. First lien: 1-4 family First lien 1-4 family loans are secured by a first lien on 1-4 family residential property. Junior lien: 1-4 family Junior lien 1-4 family loans are secured by a junior lien on 1-4 family residential property. Consumer Revolving Line: Consumer Revolving lines of credit are secured by consumer assets other than real estate. Auto: Direct consumer auto loans are secured by new and used consumer vehicles. Other: This category includes Other consumer loans made to an individual. The primary risk for this category is for those loans where the loan is unsecured. This collateral type also includes other unsecured lending, such as consumer overdrafts. Credit Cards Consumer: Consumer credit card loans are revolving loans made to individuals. Commercial: Commercial credit card loans are revolving loans made to small and commercial businesses. Leases and Other Leases: Leases are either loans to individuals for household, family and other personal expenditures or are loans related to all other direct financing and leveraged leases on property for leasing to lessees other than for household, family, and other personal expenditure purposes. All leases are secured by the lease between the lessor and the lessee. Other: Other loans are loans that are obligations of states and political subdivisions in the U.S., loans to non-depository financial institutions, loans for purchasing or carrying securities, or all other non-consumer loans. Deposits As of December 31, 2023, the company’s deposits included noninterest-bearing demand, interest-bearing demand and savings, time deposits under $250,000, and time deposits of $250,000 or more. Securities The company’s debt securities available for sale principally include U.S. Treasury and Agency securities, GSE mortgage-backed securities, certain securities of state and political subdivisions, corporates, and collateralized loan obligations. Regulation and Supervision The company is registered as a bank holding company under the Bank Holding Company Act of 1956, as amended (the BHCA) and a financial holding company under the Gramm-Leach-Bliley Act of 1999, as amended (the GLBA). As a result, the company—including all of its businesses and operations—is subject to the regulation, supervision, and examination of the FRB and to restrictions on permissible activities. This framework of regulation, supervision, and examination is intended primarily for the protection and benefit of depositors and other customers of the bank, the Deposit Insurance Fund (the DIF) of the Federal Deposit Insurance Corporation (the FDIC), the banking and financial systems as a whole, and the broader economy, not for the protection or benefit of the company’s shareholders or its non-deposit creditors. Many of the company’s subsidiaries are also subject to separate or related forms of regulation, supervision, and examination, including: (1) the bank, by the Office of the Comptroller of the Currency (the OCC) under the National Banking Acts, the FDIC under the Federal Deposit Insurance Act (the FDIA), and the Consumer Financial Protection Bureau (the CFPB) under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act); (2) UMBFS, UMB Distribution Services, LLC, and UMB Financial Services, Inc., by the Securities and Exchange Commission (the SEC) and State regulatory authorities under federal and State securities laws, and UMB Distribution Services, LLC and UMB Financial Services, Inc., by the Financial Industry Regulatory Authority (FINRA); and (3) UMB Insurance, Inc., by State regulatory authorities under applicable State insurance laws. These regulatory schemes, like those overseen by the FRB, are designed to protect public or private interests that often are not aligned with those of the company’s shareholders or non-deposit creditors. The FRB possesses extensive authorities and powers to regulate the conduct of the company’s businesses and operations. The Dodd-Frank Act requires a bank holding company like the company to serve as a source of financial strength for its depository-institution subsidiaries and to commit resources to support those subsidiaries in circumstances when the company might not otherwise elect to do so. A number of laws, principally Sections 23A and 23B of the Federal Reserve Act (the FRA), and the FRB’s Regulation W, also exist to prevent the company and its nonbank subsidiaries from taking improper advantage of the benefits afforded to the bank as a depository institution, including its access to federal deposit insurance and the discount window. In addition, under the Volcker Rule, the company is subject to extensive limits on proprietary trading and on owning or sponsoring hedge funds and private-equity funds. The deposits of the bank are insured by the FDIC in the standard insurance amount of $250 thousand per depositor for each account ownership category. As a public company, the company is subject to the Securities Act of 1933, as amended (the Securities Act), the Securities Exchange Act of 1934, as amended (the Exchange Act), the Sarbanes-Oxley Act of 2002, and other federal and State securities laws. The bank’s ratings under the CRA are taken into account by the FRB and the OCC when considering merger or other specified applications that the company or the bank may submit from time to time. The bank is subject as well to a vast array of consumer-protection laws, such as qualified-mortgage and other mortgage-related rules under the jurisdiction of the CFPB. Lending limits, restrictions on tying arrangements, limits on permissible interest-rate charges, and other laws governing the conduct of banking or fiduciary activities are also applicable to the bank. In addition, the GLBA imposes on the company and its subsidiaries a number of obligations relating to financial privacy. History UMB Financial Corporation was founded as a corporation under Missouri law in 1913.