UMB Financial Corporation Confirms Conference Call to Discuss Fourth Quarter and Year-end Earnings

Business Wire, Jan 22, 2008

KANSAS CITY, Mo. -- UMB Financial Corporation (NASDAQ: UMBF), a multi-bank holding company, will host a conference call to discuss the company's fourth quarter and year-end results on January 23, 2008, at 8:30 a.m. (CST). At that time, UMB Chairman and CEO Mariner Kemper, Chief Operating Officer Peter deSilva and Chief Financial Officer Mike Hagedorn will discuss the company's fourth quarter and record full-year earnings released earlier today and included in this announcement.

Following opening remarks, the company's management will host a question-and-answer session for analysts. Other audience members, including company investors and media, may participate in the listen-only call mode. Interested parties may access the call by dialing U.S./Canada (toll-free) 800-218-0530 or access the following Web link at least 10 minutes before the call begins: http://w.on24.com/r.htm?e=99489&s=1&k=1687404DB24DB20851AB9BEB2DDA5198 or visit www.umb.com, investor relations, to access the link to the live call.

A replay of the conference call may be heard until February 6, 2008, by calling U.S./Canada (toll-free) 800-405-2236 or 303-590-3000. The replay pass code required for playback is conference ID 11104690#. The call replay may also be accessed via the company's Web site, www.umb.com, by visiting the investor relations' area.

The company's fourth quarter and full-year earnings announcement follows:

UMB Financial Corporation Reports a 24 percent Increase and Record Full-Year Earnings of $74.2 million for 2007

Selected financial highlights

* Record full-year revenue of $521.5 million

* Record full-year noninterest income of $288.8 million

* Net interest margin for the year increased 6 basis points to 3.44 percent

* Nonperforming loans remained flat at 0.17 percent of loans

* Net chargeoffs for the year remained flat at 0.21 percent of average loans

* Capital remains strong with an equity-to-assets ratio of 9.5 percent

UMB Financial Corporation (NASDAQ: UMBF), a multi-bank holding company, announced earnings for the year ended December 31, 2007 of $74.2 million or $1.78 per share ($1.77 diluted). This is an increase of $14.4 million, or 24.2 percent, compared to the prior year earnings of $59.8 million or $1.40 per share ($1.40 diluted). Earnings for the three months ended December 31, 2007 were $15.3 million or $0.37 per share ($0.37 diluted). This is a decrease of $0.5 million, or 3.2 percent, compared to fourth quarter 2006 earnings of $15.8 million or $0.37 per share ($0.37 diluted). The fourth quarter in 2007 included a pre-tax liability accrual of $4.6 million related to the company's estimated share of Visa U.S.A., Inc.'s (Visa) covered litigation provision as well as a $0.7 million net gain on a contingent payment received on the sale of the securities transfer product. Excluding these adjustments, net income for the fourth quarter would have increased 12.6 percent to $17.8 million. A table reconciling GAAP net income for these items for the quarter and year-to-date is included with this release.

"This quarter we watched the industry weather some challenging conditions," commented Mariner Kemper, Chairman and CEO of UMB Financial Corporation. "I am extremely proud of the results our associates achieved for the quarter and the year. Our results continued to be fueled by double-digit fee income growth and an increase in net interest income. In addition, we grew average loans 9.0 percent while not wavering from our historically strong underwriting standards. Our financial performance in the current market environment validates our time-tested model of quality, liquidity and capital strength."

Net Interest Income

Net interest income for the fourth quarter of 2007 increased $4.2 million, or 7.4 percent, compared to the same period in 2006 due primarily to higher average earning assets while increasing net interest margin. Average earning assets increased by $266.0 million, or 3.9 percent, as compared to the fourth quarter of 2006. Most of this increase was due to a $138.5 million, or 3.7 percent, increase in average loans and a $149.1 million, or 5.3 percent, increase in total securities, including trading securities and other. Net interest margin increased 14 basis points to 3.55 percent for the three months ended December 31, 2007 as compared to the same quarter in 2006.

Noninterest Income and Expense

"Our results for the fourth quarter continue to be driven by the improvement in our fee-based businesses," said Peter deSilva, President and Chief Operating Officer. "Noninterest income increased 12.1 percent for the quarter, and 13.3 percent for the year. This growth was primarily due to the increase in trust and securities processing income from our Asset Management and Fund Services divisions, as well as bankcard fees. Additionally, during the quarter, we announced that our Healthcare Services Division passed $100 million in Health Savings Account (HSA) assets, or an increase of 53 percent over the prior year. Finally, with almost 800,000 healthcare accounts, we are optimistic about the growth opportunity and remain committed to maintaining our leadership position in this important segment."