UMBF UMB Financial Corporation

The Federal Reserve Board recently released announced results from a survey about the performance of alternative mortgage products and subprime residential loans. The survey, released August 14, 2006, indicated that while the performance of these products appears to be as good as or better than many lenders expected, several are predicting trouble ahead. The Fed surveyed senior loan officers and found lending activity to be virtually unchanged across many sectors. However, other areas reflected continued pessimism about the future. Forty-five bankers were surveyed on the subject. Of those, 33% said they expected the quality of alternative mortgages to deteriorate somewhat over the next 12 months, while 34% of 29 respondents said they expected a similar deterioration in subprime residential mortgage lending. Troy Bender, president of UMB Bank Mortgage Lending, provides the following statement regarding this trend. "Exotic mortgages have created additional opportunities for home ownership and have allowed customers to qualify for properties that may have otherwise been out of their price range. These products have associated risks. It is very important for customers to understand these risks prior to selecting an exotic mortgage. "Mortgage consultants must take the time to thoroughly explain the product guidelines and risks before placing any customer into an exotic mortgage. Without such education, there could be trouble ahead for many customers -- especially in markets where home values are starting to level off or depreciate." UMB Financial Corporation (Nasdaq:UMBF) is a multi-bank holding company headquartered in Kansas City, Mo., offering complete banking and related financial services to both individual and business customers nationwide. Its banking subsidiaries own and operate 140 banking centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona. Subsidiaries of the holding company and the lead bank, UMB Bank, n.a., include an investment services group based in Milwaukee, Wisconsin, a trust management company in South Dakota, and single-purpose companies that deal with brokerage services, consulting services and insurance. UMB was named one of Business Week's "Web Smart 50" companies in 2005.