UMBF UMB Financial Corporation

UMB Financial Corporation (NASDAQ: UMBF), a diversified financial holding company, announced earnings for the three months ended December 31, 2011 of $23.3 million or $0.58 per share ($0.58 diluted). This is an increase of $4.2 million, or 22.3 percent, compared to fourth quarter 2010 earnings of $19.0 million or $0.48 per share ($0.47 diluted). Earnings for the year ended December 31, 2011 were $106.5 million or $2.66 per share ($2.64 diluted). This is an increase of $15.5 million, or 17.0 percent, compared to the prior year-to-date earnings of $91.0 million or $2.27 per share ($2.26 diluted).

“2011 was a very good year for UMB,” said Mariner Kemper, Chairman and Chief Executive Officer. “With net income surpassing $100 million for the first time in the company’s history, we earned a record $106.5 million in 2011. During the past three years, we have consistently grown UMB without sacrificing credit quality or capital, and made acquisitions in what has arguably been one of the worst financial crises this country has seen in generations. Investments we’ve made in the company are paying off, and we believe these results validate our unique position as a diversified financial services company.”

Net Interest Income and Margin

Net interest income for the fourth quarter of 2011 increased $0.7 million, or 0.9 percent, compared to the same period in 2010. Average earning assets increased by $932.8 million, or 8.8 percent, compared to the fourth quarter of 2010. This increase was due to a $540.4 million, or 10.0 percent, increase in average total securities, including trading securities and a $269.3 million, or 5.8 percent, increase in average loans. Net interest margin decreased 21 basis points to 2.91 percent for the three months ended December 31, 2011 compared to the same quarter in 2010.

Noninterest Income and Expense

Noninterest income increased $3.0 million, or 3.2 percent, for the three months ended December 31, 2011 compared to the same period in 2010. This increase is primarily attributed to increased trust and securities processing income of $4.8 million, or 10.3 percent, for the three months ended December 31, 2011 compared to the same period in 2010. The increase in trust and securities processing income was primarily due to a $1.2 million, or 8.6 percent, increase in advisory fee income from the Scout Funds; a $0.7 million, or 4.1 percent, increase in fund administration and custody services; and a $2.7 million, or 50.0 percent, increase in fees related to institutional and personal investment management services. Service charges on deposits increased $1.3 million, or 7.3 percent, compared to the fourth quarter of 2010. These increases are offset by decreased trading and investment banking income of $1.5 million, or 17.0 percent, and decreased bankcard fees of $1.4 million, or 9.5 percent, compared to the three months ended December 31, 2010.

Noninterest expense increased $3.7 million, or 2.7 percent, for the three months ended December 31, 2011 compared to the same period in 2010. This increase is driven by higher salary and benefits expense of $1.7 million, or 2.3 percent, and higher other expenses of $3.6 million, or 63.4 percent. Of the increase in salary and benefits expense, approximately $0.6 million, or 36.0 percent, is related to salary and benefits from acquisitions. These increases were offset by decreases in bankcard expense of $1.3 million, or 27.6 percent, regulatory fees of $1.3 million, or 38.0 percent, and equipment expense of $1.1 million, or 9.7 percent, compared to the three months ended December 31, 2010.

“Our fee businesses continued to be a primary driver of our strong fourth quarter results and year over year earnings growth. “Our acquisitions have performed well and contributed strongly to our growth in fee income,” said Peter deSilva, President and Chief Operating Officer. “For the full year, noninterest income increased $54.0 million, or 15.0 percent, as compared to the same period in 2010. Due to uncertainties in Europe, flows slowed considerably in our flagship international product causing the Scout Funds to experience net outflows of $2.0 million for the quarter. For the full year, the Scout Funds enjoyed over $1 billion in net flows reflecting our strong long-term product performance and distribution capabilities. We closed out the year-end corporate benefits open enrollment season with strong growth in FSA and HSA accounts and balances. We ended the year with almost 2.5 million FSA and HSA accounts and nearly $300 million in deposits. We are pleased with the growth of our various fee businesses and are looking for our fee businesses to be a key driver of growth again in 2012.”

Balance Sheet

Average total assets for the three months ended December 31, 2011 were $12.5 billion compared to $11.6 billion for the same period in 2010, an increase of $984.1 million, or 8.5 percent. Average earning assets increased by $932.8 million for the period, or 8.8 percent.

Average loan balances for the three months ended December 31, 2011 increased $269.3 million, or 5.8 percent, to $4.9 billion compared to the same period in 2010. Actual loan balances on December 31, 2011 were $5.0 billion, an increase of $376.7 million, or 8.2 percent, compared to December 31, 2010. Commercial loans increased $297.8 million, or 15.4 percent, and commercial real estate increased 99.7 million, or 7.7 percent.

Nonperforming loans increased to $25.6 million on December 31, 2011 from $25.1 million on December 31, 2010. As a percentage of loans, nonperforming loans decreased to 0.52 percent as of December 31, 2011 compared to 0.55 percent on December 31, 2010. Nonperforming loans are defined as nonaccrual loans and restructured loans. By comparison, the industry median for nonperforming loans as of September 30, 2011 was 3.82 percent. The company’s allowance for loan losses totaled $72.0 million, or 1.45 percent of loans, as of December 31, 2011 compared to $74.0 million, or 1.61 percent of loans, as of December 31, 2010.

For the three months ended December 31, 2011, average securities, including trading securities, totaled $6.0 billion. This is an increase of $540.4 million, or 10.0 percent, from the same period in 2010.

Average total deposits increased $1.1 billion, or 12.1 percent, to $9.9 billion for the three months ended December 31, 2011 compared to the same period in 2010. Average noninterest-bearing demand deposits increased $916.0 million, or 31.1 percent, compared to 2010. Average interest-bearing deposits increased by $148.9 million, or 2.5 percent, in 2011 as compared to 2010. Total deposits as of December 31, 2011 were $10.2 billion, compared to $9.0 billion as of December 31, 2010, a 12.6 percent increase. Also, as of December 31, 2011, noninterest-bearing demand deposits were 38.8 percent of total deposits.

“2011 was a record year for revenue and net income at UMB,” said Mike Hagedorn, Chief Financial Officer. “Additionally, our capital increased 12.3 percent and total assets increased 9.2 percent. We are growing the company as we increase net income, a sign of the strength of our business model. We continue to position the company for long term growth even though in the short run we face a challenging rate environment.”

As of December 31, 2011, UMB had total shareholders’ equity of $1.2 billion, an increase of 12.3 percent as compared to the same period in 2010.

Dividend Declaration

The Board of Directors declared during the company’s quarterly board meeting a $0.205 quarterly cash dividend, payable on April 2, 2012, to shareholders of record at the close of business on March 9, 2012.

Year-to-Date

Earnings for the year ended December 31, 2011 were $106.5 million or $2.66 per share ($2.64 diluted). This is an increase of $15.5 million, or 17.0 percent, compared to the prior year-to-date earnings of $91.0 million or $2.27 per share ($2.26 diluted).

Net interest income for the year ended December 31, 2011 increased $6.4 million, or 2.0 percent, compared to the same period in 2010. Net interest margin decreased to 2.94 percent for the year ended December 31, 2011 as compared to 3.21 percent for the same period in 2010.

Noninterest income increased $54.0 million, or 15.0 percent, to $414.3 million for the year ended December 31, 2011 as compared to the same period in 2010. Trust and securities processing income increased $48.0 million, or 30.0 percent, for year-to-date December 31, 2011 as compared to the same period in 2010. Bankcard fees increased $5.0 million, or 9.1 percent, compared to 2010. Gains from the sale of securities available for sale of $16.1 million were recognized during the year ended December 31, 2011 compared to $8.3 million for the same period of 2010.

Noninterest expense increased $50.1 million, or 9.8 percent, for the year ended December 31, 2011 compared to the same period in 2010. Salary and employee benefit expense increased by $27.5 million, or 10.3 percent. Amortization of intangible assets increased $5.0 million, or 44.5 percent. Processing fees increased $4.5 million, or 9.9 percent. Additionally, during the second quarter, the company established a $7.8 million escrow fund to settle a class action lawsuit.

Conference Call

The company plans to host a conference call to discuss its 2011 fourth quarter and year-end earnings results on January 25, 2012, at 8:30 a.m. (CST). Interested parties may access the call by dialing (toll-free) 877-941-9205 or (U.S.) 480-629-9692. The live call can also be accessed by following the link http://event.on24.com/r.htm?e=393716&s=1&k=7864611AD5EF6CE139D4FB0FA0486B25 or by visiting the investor relations area of umb.com.

A replay of the conference call may be heard until February 8, 2012 by calling (toll-free) 800-406-7325 or (U.S.) 303-590-3030. The replay pass code required for playback is conference identification number 4503730. The call replay may also be accessed via the company's website, umb.com, by visiting the investor relations area.

Forward-Looking Statements:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements rely on a number of assumptions concerning future events and are subject to risks and uncertainties, which could cause actual results to differ materially from those contemplated by the forward-looking statements in this Current Report on Form 8-K, any exhibits to this Current Report and other public statements the company may make. While management of UMB believes their assumptions are reasonable, UMB cautions that changes in general economic conditions, changes in interest rates, changes in the securities markets, changes in operations, changes in competition, technology changes, legislative or regulatory changes, the ability of customers to repay loans, changes in loan demand, increases in employee costs, its ability to integrate acquisitions and other risks and uncertainties detailed in UMB’s filings with the Securities and Exchange Commission, may cause actual results to differ materially from those discussed in this release. UMB has no duty to update such statements, and undertakes no obligation to update or supplement forward-looking statements that become untrue because of new information, future events or otherwise.

About UMB:

UMB Financial Corporation (NASDAQ: UMBF) is a financial services holding company headquartered in Kansas City, Mo., offering complete banking, asset management, health spending solutions and related financial services to commercial, institutional and personal customers nationwide. Its banking subsidiaries own and operate banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona. Subsidiaries of the holding company and the lead bank, UMB Bank, n.a., include mutual fund and alternative investment services groups, single-purpose companies that deal with brokerage services and insurance, and a registered investment advisor that manages the company's proprietary mutual funds and investment advisory accounts for institutional customers. For more information, visit umb.com or follow us on Twitter at @UMBBank.

      CONSOLIDATED BALANCE SHEETS         UMB Financial Corporation (unaudited, dollars in thousands)       December 31,

Assets

  2011         2010   Loans $ 4,960,343 $

4,583,683

Allowance for loan losses   (72,017)         (73,952) Net loans   4,888,326         4,509,731 Loans held for sale 10,215 14,414 Investment securities: Available for sale 6,107,882 5,613,047 Held to maturity 89,246 63,566 Trading securities 58,142 42,480 Federal Reserve Bank Stock and other   22,212         23,011

Total investment securities

  6,277,482         5,742,104 Federal funds and resell agreements 66,078 235,176 Interest-bearing due from banks 1,164,007 848,598 Cash and due from banks 446,580 356,092 Bank premises and equipment, net 227,936 219,727 Accrued income 75,997 76,653 Goodwill 211,114 211,114 Other intangibles 84,331 92,297 Other assets   89,332         99,026 Total assets $ 13,541,398       $ 12,404,932    

Liabilities

Deposits: Noninterest-bearing demand $ 3,941,372 $ 2,888,881 Interest-bearing demand and savings 4,680,125 4,445,798 Time deposits under $100,000 615,475 693,600 Time deposits of $100,000 or more   932,939         1,000,462 Total deposits   10,169,911         9,028,741 Federal funds and repurchase agreements 1,950,827 2,084,342 Short-term debt 12,000 35,220 Long-term debt 6,529 8,884 Accrued expenses and taxes 186,380 145,458 Other liabilities   24,619         41,427 Total liabilities   12,350,266         11,344,072  

Shareholders' Equity

Common stock 55,057 55,057 Capital surplus 723,299 718,306 Retained earnings 697,923 623,415 Accumulated other comprehensive income 81,099 25,465 Treasury stock   (366,246)         (361,383) Total shareholders' equity   1,191,132         1,060,860

Total liabilities and shareholders' equity

$ 13,541,398       $ 12,404,932   Consolidated Statements of Income                             UMB Financial Corporation (unaudited, dollars in thousands except share and per share data)                         Three Months Ended Year Ended December 31, December 31,

Interest Income

2011         2010         2011         2010 Loans $ 54,557 $ 55,783 $ 219,076 $ 221,797 Securities: Taxable interest 20,223 22,109 85,120 90,409 Tax-exempt interest 9,422         7,822         34,766         29,497 Total securities income 29,645 29,931 119,886 119,906 Federal funds and resell agreements 28 22 102 159 Interest-bearing due from banks 652 814 3,284 3,914 Trading securities 623         231         1,305         731 Total interest income 85,505         86,781         343,653         346,507  

Interest Expense

Deposits 5,660 7,462 24,628 33,447 Federal funds and repurchase agreements 307 545 1,712 2,017 Other 5         (13)         340         430 Total interest expense 5,972         7,994         26,680         35,894 Net interest income 79,533 78,787 316,973 310,613 Provision for loan losses 5,000         7,400         22,200         31,510 Net interest income after provision for loan losses 74,533         71,387         294,773         279,103  

Noninterest Income

Trust and securities processing 51,101 46,326 208,392 160,356 Trading and investment banking 7,270 8,757 27,720 29,211 Service charges on deposits 18,990 17,504 74,659 77,617 Insurance fees and commissions 968 1,025 4,375 5,565 Brokerage fees 2,410 1,666 9,950 6,345 Bankcard fees 12,898 14,250 59,767 54,804 Gains on sale of available for sale securities, net 234 1,045 16,125 8,315 Other 3,898         4,182         13,344         18,157 Total noninterest income 97,769         94,755         414,332         360,370  

Noninterest Expense

Salaries and employee benefits 74,030 72,364 294,756 267,213 Occupancy, net 9,825 9,244 38,406 36,251 Equipment 10,593 11,729 42,728 44,934 Supplies and services 5,496 4,632 22,166 18,841 Marketing and business development 5,958 5,787 20,150 18,348 Processing fees 11,788 11,689 49,985 45,502 Legal and consulting 5,637 5,546 15,601 14,046 Bankcard 3,528 4,872 15,600 16,714 Amortization of intangible assets 3,913 3,459 16,100 11,142 Regulatory fees 2,154 3,474 10,395 13,448 Class action litigation settlement - - 7,800 - Other 9,299         5,689         29,059         26,183 Total noninterest expense 142,221 138,485 562,746 512,622   Income before income taxes 30,081 27,657 146,359 126,851 Income tax provision 6,815         8,626         39,887         35,849 Net income $ 23,266       $ 19,031       $ 106,472       $ 91,002  

Per Share Data

Net income - basic $ 0.58 $ 0.48 $ 2.66 $ 2.27 Net income – diluted 0.58 0.47 2.64 2.26 Dividends 0.205 0.195 0.790 0.750 Weighted average shares outstanding 39,967,448 40,037,130 40,034,435 40,071,751   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         Stock         Total

Balance - January 1, 2010

$ 55,057 $ 712,774 $ 562,748 $ 40,454 $ (355,482) $ 1,015,551 Comprehensive income Net income - - 91,002 - - 91,002

Change in unrealized gains on  securities

- - - (14,989) - (14,989) Total comprehensive income 76,013 Cash dividends ($0.75 per share) - - (30,335) - - (30,335) Purchase of treasury stock - - - - (8,879) (8,879) Issuance of equity awards - (1,673) - - 1,798 125

Recognition of equity based  compensation

- 5,953 - - - 5,953

Net tax benefit related to equity  compensation plans

- 152 - - - 152

Sale of treasury stock

- 540 - - 298 838 Exercise of stock options   -         560         -         -         882         1,442 Balance – December 31, 2010 $ 55,057       $ 718,306       $ 623,415       $ 25,465       $ (361,383)       $ 1,060,860   Balance - January 1, 2011 $ 55,057 $ 718,306 $ 623,415 $ 25,465 $ (361,383) $ 1,060,860 Comprehensive income Net income - - 106,472 - - 106,472

Change in unrealized gains on  securities

- - - 55,634 - 55,634 Total comprehensive income 162,106 Cash dividends ($0.79 per share) - - (31,964) - - (31,964) Purchase of treasury stock - - - - (9,142) (9,142) Issuance of equity awards - (2,244) - - 2,484 240

Recognition of equity based  compensation

- 6,510 - - - 6,510

Net tax benefit related to equity  compensation plans

- 79 - - - 79 Sale of treasury stock - 295 - - 315 610 Exercise of stock options   -         353         -         -         1,480         1,833 Balance – December 31, 2011 $ 55,057       $ 723,299       $ 697,923       $ 81,099       $ (366,246)       $ 1,191,132   Average Balances / Yields and Rates                   UMB Financial Corporation   (tax - equivalent basis)                         (unaudited, dollars in thousands) Year Ended December 31,   2011         2010 Average Average Average Average Assets   Balance       Yield/Rate           Balance       Yield/Rate   Loans, net of unearned interest $ 4,756,165 4.61 % $ 4,490,587 4.95 % Securities: Taxable 4,224,456 2.01 3,964,661 2.28 Tax-exempt 1,497,834       3.54 1,067,689       4.28

Total securities

5,722,290 2.41 5,032,350 2.71 Federal funds and resell agreements 31,273 0.32 44,383 0.36 Interest-bearing due from banks 837,807 0.39 593,518 0.66 Trading securities 51,927       2.64 41,489       1.91 Total earning assets 11,399,462 3.18 10,202,327 3.56 Allowance for loan losses (73,002) (69,087) Other assets   1,090,814   974,993 Total assets $ 12,417,274 $ 11,108,233     Liabilities and Shareholders' Equity Interest-bearing deposits $ 6,178,795 0.40 % $ 5,656,508 0.59 % Federal funds and repurchase agreements 1,471,011 0.12 1,409,349 0.14 Borrowed funds 36,580       0.93 42,313       1.02 Total interest-bearing liabilities 7,686,386 0.35 7,108,170 0.50 Noninterest-bearing demand deposits 3,414,843 2,795,458 Other liabilities 177,420 137,733 Shareholders' equity   1,138,625   1,066,872 Total liabilities and shareholders' equity $ 12,417,274 $ 11,108,233 Net interest spread 2.83 % 3.06 % Net interest margin 2.94 3.21     Three Months Ended December 31,   2011         2010 Average Average Average Average Assets   Balance       Yield/Rate           Balance       Yield/Rate   Loans, net of unearned interest $ 4,875,327 4.45 % $ 4,606,019 4.81 % Securities: Taxable 4,209,819 1.91 4,162,658 2.11 Tax-exempt 1,704,167       3.33 1,219,440       3.95 Total securities 5,913,986 2.32 5,382,098 2.52 Federal funds and resell agreements 35,307 0.30 23,066 0.38 Interest-bearing due from banks 627,953 0.41 517,048 0.62 Trading securities 56,505       4.45 48,039       2.12 Total earning assets 11,509,078 3.11 10,576,270 3.42 Allowance for loan losses (72,682) (72,880) Other assets   1,109,799   1,058,717 Total assets $ 12,546,195 $ 11,562,107     Liabilities and Shareholders' Equity Interest-bearing deposits $ 6,022,262 0.37 % $ 5,873,330 0.50 % Federal funds and repurchase agreements 1,248,200 0.10 1,441,146 0.15 Borrowed funds 41,513       0.04 38,900       (0.13) Total interest-bearing liabilities 7,311,975 0.32 7,353,376 0.43 Noninterest-bearing demand deposits 3,863,446 2,947,452 Other liabilities 192,059 170,240 Shareholders' equity   1,178,715   1,091,039 Total liabilities and shareholders' equity $ 12,546,195 $ 11,562,107 Net interest spread 2.79 % 2.99 % Net interest margin 2.91 3.12   FOURTH QUARTER 2011               FINANCIAL HIGHLIGHTS           UMB Financial Corporation (unaudited, dollars in thousands, except share and per share data)   Year Ended December 31   2011           2010   Net interest income $ 316,973 $ 310,613 Provision for loan losses 22,200 31,510 Noninterest income 414,332 360,370 Noninterest expense 562,746 512,622 Income before income taxes 146,359 126,851 Net income 106,472 91,002 Net income per share - Basic 2.66 2.27 Net income per share - Diluted 2.64 2.26 Return on average assets 0.86 % 0.82 % Return on average equity 9.35 % 8.53 %   Three Months Ended December 31 Net interest income $ 79,533 $ 78,787 Provision for loan losses 5,000 7,400 Noninterest income 97,769 94,755 Noninterest expense 142,221 138,485 Income before income taxes 30,081 27,657 Net income 23,266 19,031 Net income per share - Basic 0.58 0.48 Net income per share - Diluted 0.58 0.47 Return on average assets 0.74 % 0.65 % Return on average equity 7.83 % 6.92 %   At December 31 Assets $ 13,541,398 $ 12,404,932 Loans, net of unearned interest 4,960,343 4,583,683 Securities 6,277,482 5,742,104 Deposits 10,169,911 9,028,741 Shareholders' equity 1,191,132 1,060,860 Book value per share 29.46 26.24 Market price per share 37.25 41.44 Equity to assets 8.80 % 8.55 % Allowance for loan losses $ 72,017 $ 73,952 As a % of loans 1.45 % 1.61 % Nonaccrual and restructured loans $ 25,581 $ 25,142 As a % of loans 0.52 % 0.55 % Loans over 90 days past due $ 5,998 $ 5,480 As a % of loans 0.12 % 0.12 % Other real estate owned $ 5,959 $ 4,387 Net loan charge-offs quarter-to-date $ 5,859 $ 6,166 As a % of average loans 0.48 % 0.53 % Net loan charge-offs year-to-date $ 24,135 $ 21,697 As a % of average loans 0.51 % 0.48 %   Common shares outstanding 40,426,342 40,430,081   Average Balances Year Ended December 31 Assets $ 12,417,274 $ 11,108,233 Loans, net of unearned interest 4,756,165 4,490,587 Securities 5,774,217 5,073,839 Deposits 9,593,638 8,451,966 Shareholders' equity 1,138,625 1,066,872   Selected Financial Data                         of Affiliate Banks                             UMB Financial Corporation (unaudited, dollars in thousands) December 31, 2011 Loans Net of Total Unearned Total Shareholders' Missouri         Assets         Interest         Deposits         Equity UMB Bank, n.a. $ 11,196,406 $ 4,001,480 $ 8,551,043 $ 762,823   Colorado                                         UMB Bank Colorado, n. a. 1,566,184 633,341 1,205,804 164,880   Kansas                                         UMB National Bank of America 825,450 208,917 401,106 68,615   Arizona                                         UMB Bank Arizona, n. a. 143,768 127,893 65,748 15,458   Banking - Related Subsidiaries                                         UMB CDC, Inc. UMB Banc Leasing Corp. UMB Financial Services, Inc. UMB Insurance, Inc. UMB Capital Corporation United Missouri Insurance Company UMB Trust Company of South Dakota UMB Fund Services, Inc. Kansas City Realty Company

Kansas City Financial Corporation

UMB Redevelopment Corporation UMB Realty Company, LLC Grand Distribution Services, LLC UMB Distribution Services, LLC J. D. Clark & Co., Inc. UMB Bank & Trust, National Association Scout Distributors, LLC Scout Investments, Inc. Prairie Capital Management, LLC UMB Merchant Banc, LLC