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Analogy 1: A regional JPMorgan Chase.

Analogy 2: A Midwest-focused US Bancorp.

Analogy 3: PNC Financial Services, but primarily in the Midwest.

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• Commercial & Consumer Banking: Provides a range of financial products and services, including checking accounts, savings accounts, loans (commercial, real estate, consumer), credit cards, and treasury management solutions for businesses and individuals.
• Institutional Banking: Offers specialized services to institutional clients, such as asset servicing (custody, fund administration), corporate trust, and capital markets solutions.
• Wealth Management: Delivers comprehensive financial planning, investment management, trust and estate services, and private banking solutions for high-net-worth individuals and families.

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UMB Financial (UMBF) is a diversified financial services company that serves a broad range of customers across various segments, rather than relying on a few specific "major customers" in the traditional sense. Its customer base is diversified across businesses, individuals, and institutions. Therefore, UMBF primarily serves the following categories of customers:

1. Commercial and Corporate Clients: This category encompasses a wide spectrum of businesses, from small and mid-sized enterprises to larger corporations across numerous industries. UMBF provides these clients with a comprehensive suite of commercial banking services, including business loans, lines of credit, treasury management solutions, merchant services, and commercial real estate financing. Due to the confidential nature of client relationships and the diversified composition of their loan and service portfolios, UMBF does not publicly disclose specific major corporate clients.
2. Individual Clients: This segment includes services tailored for consumers and high-net-worth individuals:
   • Retail Customers: Everyday consumers seeking traditional banking services such as checking and savings accounts, mortgages, home equity loans, personal loans, and credit cards.
   • Wealth Management Clients: High-net-worth individuals, families, and family offices who utilize private banking, wealth planning, investment management, trust and estate services, and financial advisory.
3. Institutional Clients: This category comprises various institutional customers, including other financial institutions (e.g., mutual funds, investment managers), pension funds, endowments, foundations, corporations (for specific asset servicing needs), and governmental entities. UMBF offers specialized services such as asset servicing (custody, fund administration), corporate trust services, and institutional investment management.

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Mariner Kemper, Chairman and Chief Executive Officer

Mariner Kemper is a fifth-generation banker and the sixth Kemper leader of UMB Financial Corporation, which was founded by his great-grandfather in 1913. He has been with UMB for nearly 30 years, serving in various roles including president of UMB Bank Colorado, n.a. and executive vice president of UMB Financial Corporation, before becoming Chairman and CEO in May 2004. Under his leadership, UMB has grown significantly, including a major acquisition in 2025.

Ram Shankar, Executive Vice President and Chief Financial Officer

Ram Shankar joined UMB in 2016 and has over 20 years of financial services industry experience. Prior to UMB, he was the managing director of financial planning and analysis and investor relations at First Niagara Financial Group for five years. He also served as an equity research analyst at FBR Capital Markets and held roles in corporate finance and financial planning and analysis at M&T Bank Corporation.

James Rine, President, UMB Financial Corporation and President and CEO, UMB Bank, n.a.

James Rine began his career at UMB as a credit analyst in 1994 and has held various leadership positions within the company over his more than 30-year tenure. He was named president and CEO of UMB Bank in 2018 and expanded his role to President of UMB Financial Corporation in 2024. In his role as UMB Bank CEO, he is responsible for the bank's revenue generation and operations, including commercial and personal banking, institutional services, wealth management, information and technology, and credit administration.

Shannon Johnson, Executive Vice President and Chief Administrative Officer

Shannon Johnson serves as Executive Vice President and Chief Administrative Officer (CAO) at UMB Financial Corporation. In this role, she is responsible for executive oversight of legal and compliance, internal audit, credit and risk management, human resources, and corporate strategy.

Darren Herrmann, Executive Vice President & Corporate Treasurer

Darren Herrmann serves as Executive Vice President and Corporate Treasurer of UMB Financial Corporation. He has been the Treasurer since 2002.

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The key risks to UMB Financial (UMBF) are primarily related to its recent acquisition and the broader economic environment.

1. Integration Risks and Costs from the HTLF Acquisition: UMB Financial's acquisition of Heartland Financial (HTLF) introduces significant integration challenges. The process of merging operations, systems, and corporate cultures can be complex and costly, potentially leading to short-term disruptions, inefficiencies, and increased expenses.
2. Credit Risk Management and Nonperforming Loans: Following the HTLF acquisition, UMBF has experienced an increase in nonperforming loans, signaling potential weaknesses in its credit risk management framework. This rise in nonperforming assets necessitates robust credit assessment and monitoring processes to prevent further deterioration in asset quality and maintain investor confidence. Additionally, the company's exposure to commercial real estate loans, while currently mitigated by strong underwriting, contributes to this risk factor.
3. Economic and Market Volatility: As a financial institution, UMB Financial is significantly exposed to economic downturns, fluctuations in interest rates, and overall market volatility. These conditions can adversely affect the company's financial performance, including its net interest income, loan portfolio, and investment securities. For instance, potential Federal Reserve interest rate cuts could serve as a headwind to net interest income.

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UMB Financial, like many regional banks, faces several clear emerging threats stemming from the acceleration of digital financial services and the entry of new, technologically advanced competitors:

1. Neobanks and Fintech Challenger Banks: Digital-first banks (e.g., Chime, Varo) and fintech platforms are attracting customers with superior mobile experiences, lower fees, faster transactions, and targeted products. These agile competitors can acquire customers at a lower cost than traditional banks with extensive branch networks, threatening UMBF’s retail deposit base and its ability to attract younger, tech-savvy customers. Their disruptive model is analogous to Netflix challenging Blockbuster by offering a more convenient and often more cost-effective service.

2. Embedded Finance and Specialized Payment Providers: Companies like Block (Square), Stripe, and PayPal are expanding their offerings beyond basic payment processing to include integrated financial services such as lending, banking-as-a-service, and comprehensive financial management tools directly to businesses and consumers. This trend disintermediates traditional banks from crucial revenue streams in merchant services, small business lending, and payment flows, areas where UMBF competes. This shift mirrors Uber disrupting traditional taxi services by creating a new platform that streamlines and redefines the service experience.

3. Big Tech Companies Expanding into Financial Services: Tech giants such as Apple (e.g., Apple Card, Apple Savings, Apple Pay Later), Google, and Amazon are leveraging their massive customer bases, vast data resources, and advanced technological capabilities to offer a growing array of financial products. These companies can seamlessly integrate financial services into their existing ecosystems, prioritizing user experience and convenience. This threatens to relegate traditional banks like UMBF to a less visible, utility-provider role, eroding direct customer relationships and brand loyalty, much like the iPhone disrupted the mobile phone market and redefined user expectations beyond what traditional players offered.

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UMB Financial Corporation (symbol: UMBF) offers a range of financial products and services. The addressable market sizes for its main products and services in the specified regions are as follows:

• Commercial Banking: The U.S. commercial banking market size is estimated at USD 732.5 billion in 2025 and is forecasted to reach USD 915.45 billion by 2030.
• Wealth Management: The North America wealth management market was valued at USD 937.45 billion in 2023. The U.S. market holds a dominant position within this region.
• Healthcare Services: The U.S. healthcare market was valued at USD 4.60 trillion in 2024 and is estimated to reach USD 4.87 trillion in 2025. UMB Financial's offerings specifically include healthcare payment solutions like custodial services for Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs).
• Payment Solutions: The United States payment processing solutions market generated a revenue of USD 16.00 billion in 2023 and is expected to reach USD 36.75 billion by 2030. UMB Financial provides treasury management services and healthcare payment solutions.
• Personal Banking: The United States retail banking market is valued at USD 0.87 trillion in 2025 and is projected to reach USD 1.08 trillion by 2030.
• Institutional Banking: null

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UMB Financial (UMBF) is expected to drive future revenue growth over the next 2-3 years through several key strategies and market dynamics:

1. Heartland Financial (HTLF) Acquisition and Integration: The acquisition of Heartland Financial USA, Inc. (HTLF), completed in January 2025, is a pivotal driver. This strategic move significantly boosts UMB's asset base, market presence, and is expected to contribute substantial contractual accretion to net interest income through 2027. The integration is also anticipated to yield significant cost savings and operational efficiencies, further enhancing the company's financial profile.
2. Strong Organic Loan and Deposit Growth: UMBF has demonstrated robust organic growth in its loan and deposit portfolios, particularly within its commercial and institutional segments. This organic expansion, along with strategic growth in high-growth Midwest and Southwest markets, continues to outpace many peer banks and supports long-term revenue and earnings growth.
3. Growth in Fee Income from Diversified Services: The company's diversified financial model, characterized by strong fee income, is a significant contributor to revenue. This growth is evident across several areas, including institutional businesses such as fund services, corporate trust activities, and asset servicing, where assets under administration have exceeded $0.5 trillion. Increases in trading and investment banking volumes, particularly in municipal and mortgage-backed securities, along with bank card fees, also contribute to this non-interest income stream.
4. Strategic Market Expansion and New Product Offerings: UMB Financial is expanding its reach through disciplined expansion across Midwest and Southwest markets. The company has also been successful in launching new product offerings, such as mortgage products in its newly acquired regions, which have shown promising early results and strong pipelines. This strategic growth in both geographic footprint and service offerings helps to capitalize on growing demand and diversify revenue streams.

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Share Repurchases

• In the first quarter of 2024, UMB Financial authorized a share repurchase plan for up to 1 million shares of its common stock, which remains active until the 2025 annual meeting of shareholders.
• UMB Financial had a prior authorization in April 2021 to repurchase up to 2 million shares of common stock, valid until the Board meeting following the 2022 annual meeting.
• As of December 2024, no common shares had been repurchased under the 2024 authorization.

Share Issuance

• In May 2025, UMB Financial announced an underwritten public offering of 12,000,000 depositary shares, representing interests in its Series B Preferred Stock, with anticipated net proceeds of approximately $294.5 million for general corporate purposes.
• In April 2024, UMB Financial completed an underwritten public offering of 2,800,000 shares of its common stock at $75.00 per share, yielding approximately $201.6 million in net proceeds.
• The proceeds from the May 2025 depositary shares offering may be used to redeem all outstanding shares of its Series A Preferred Stock and to repurchase or retire a portion of its 3.70% Fixed-to-Fixed Rate Subordinated Notes due 2030.

Outbound Investments

• UMB Financial completed its largest acquisition by acquiring Heartland Financial USA, Inc. for $2 billion in January/February 2025, which increased UMB's asset size to approximately $68 billion and expanded its geographic footprint from eight to thirteen states.
• The company recognized a pre-tax gain of $29.4 million as of June 30, 2025, from its $6 million investment over the past five years in Voyager Technologies, Inc. following its successful initial public offering in June 2025.
• Through its Private Investments division, UMB has invested over $200 million across more than 50 businesses, typically providing $2-8 million in minority equity or subordinated debt to small private companies.

Capital Expenditures

• UMB Financial reported capital expenditures of $3.55 million, $7.06 million, and $14.804 million in recent periods, although specific years were not provided in the snippet.
• Capital expenditures are generally focused on financing capital improvements, farm operations, and the purchase of livestock and machinery, particularly within commercial and industrial loans.
• The acquisition of Heartland Financial USA, Inc. involved significant integration efforts, with the systems and brand conversion finalized in October 2025, indicating substantial operational investments related to the merger.