UMB FINANCIAL CORP

Previous wording

This Management’s Discussion and Analysis of Financial Condition and Results of Operations highlights the material changes in the results of operations and changes in financial condition of the Company for the three and nine months ended September 30, 2025. It should be read in conjunction with the accompanying Consolidated Financial Statements, Notes to Consolidated Financial Statements and other financial information appearing elsewhere in this Form 10-Q and the Form 10-K. Results of operations for the periods included in this review are not necessarily indicative of results to be attained during any future period.

Current wording

This Management’s Discussion and Analysis of Financial Condition and Results of Operations highlights the material changes in the results of operations and changes in financial condition of the Company for the three months ended March 31, 2026. It should be read in conjunction with the accompanying Consolidated Financial Statements, Notes to Consolidated Financial Statements and other financial information appearing elsewhere in this Form 10-Q and the Form 10-K. Results of operations for the periods included in this review are not necessarily indicative of results to be attained during any future period.

Previous wording

the Company’s ability to keep pace with changes in technology that affect the Company or its customers, counterparties, or competitors;

Current wording

the Company’s ability to keep pace with changes in technology that affect the Company or its customers, counterparties, or competitors, including technology changes with respects to digital assets;

Previous wording

the benefits from the merger may not be fully realized or may take longer to realize than expected;

Current wording

the benefits from the merger with HTLF may not be fully realized or may take longer to realize than expected;

Previous wording

natural disasters, war, terrorist activities, including instability in the Middle East and Russia's military action in Ukraine, pandemics, and their effects on economic and business environments in which the Company operates;

Current wording

natural disasters, war, terrorist activities, including instability in the Middle East and Russia's military action in Ukraine and developments in Latin America, pandemics, and their effects on economic and business environments in which the Company operates;

Previous wording

macroeconomic and adverse developments and uncertainties related to the collateral effects of the collapse of, and challenges for, domestic and international banks, including the impacts to the U.S. and global economies and reputational harm to the U.S. banking system;

Current wording

macroeconomic and adverse developments and uncertainties related to the collateral effects of the collapse of, and challenges for, domestic and international banks, including the impacts to the U.S. and global economies and reputational harm to the U.S. banking system; or

Previous wording

On January 31, 2025, UMBF completed its previously announced acquisition of Heartland Financial, USA, Inc. (HTLF). The acquisition added assets with a fair value of approximately $16.1 billion, $9.7 billion of loans, net of the allowance for credit losses, and $14.3 billion of deposits. The combined company retains its #1 deposit market share in Missouri and now ranks in the top 10 in Colorado, New Mexico, Kansas, and Arizona. The impacts of the acquisition are significant drivers in the results for the first nine months of 2025.

Current wording

On January 31, 2025, the Company completed its previously announced acquisition of Heartland Financial, USA, Inc. (HTLF). The acquisition added assets with a fair value of approximately $16.1 billion, $9.7 billion of loans, net of the allowance for credit losses, and $14.3 billion of deposits. The combined company retains its #1 deposit market share in Missouri and now ranks in the top 10 in Colorado, New Mexico, Kansas, and Arizona.

Previous wording

The first financial objective is to continuously improve operating efficiencies. The Company has focused on identifying efficiencies that simplify our organizational and reporting structures, streamline back-office functions, and take advantage of synergies and newer technologies among various platforms and distribution networks. The acquisition of HTLF will be integral in improving operational efficiency. Following the third quarter, the Company successfully completed the conversion of the technology and branding of HTLF customers. The Company has identified and expects to continue identifying ongoing efficiencies through the normal course of business that, when combined with increased revenue, will contribute to improved operating leverage. During the third quarter of 2025, total revenue increased $272.2 million, or 67.0%, as compared to the third quarter of 2024, while noninterest expense increased $166.8 million, or 66.1%, for the same period. Included in noninterest expense for the third quarter of 2025 is $35.6 million in acquisition-related expense. Revenue is also impacted by accretion and amortization of the fair value adjustments discussed in Note 13, “Acquisition” above. As part of the initiative to improve operating efficiencies, the Company continues to invest in technological advances that it believes will help management drive operating leverage in the future through improved data analysis and automation. The Company also continues to evaluate core systems and will invest in enhancements that it believes will yield operating efficiencies.

Current wording

The first financial objective is to continuously improve operating efficiencies. The Company has focused on identifying efficiencies that simplify our organizational and reporting structures, streamline back-office functions, and take advantage of synergies and newer technologies among various platforms and distribution networks. During the fourth quarter of 2025, the Company successfully completed the conversion of the technology and branding of HTLF customers. The Company has identified and expects to continue identifying ongoing efficiencies through the normal course of business that, when combined with increased revenue, will contribute to improved operating leverage. During the first quarter of 2026, total revenue increased $175.3 million, or 31.1%, as compared to the first quarter of 2025, while noninterest expense decreased $3.9 million, or 1.0%, for the same period. Included in noninterest expense for the first quarter of 2025 is $53.2 million in acquisition-related expense compared to $4.4 million in the first quarter of 2026 . Revenue is also impacted by one additional month of revenue from HTLF in 2026, including accretion and amortization of the fair value adjustments discussed in Note 13, “Acquisition” above. As part of the initiative to improve operating efficiencies, the Company continues to invest in technological advances that it believes will help management drive operating leverage in the future through improved data analysis and automation. The Company also continues to evaluate core systems and will invest in enhancements that it believes will yield operating efficiencies.

Previous wording

The second financial objective is to increase net interest income through profitable loan and deposit growth and the optimization of the balance sheet. During the third quarter of 2025, the Company had an increase in net interest income of $227.7 million, or 92.0%, from the same period in 2024. The change in net interest income was primarily driven by rate and mix changes related to the HTLF acquisition. Interest income increased $321.2 million, or 57.6%, while interest expense increased $93.5 million, or 30.1%. The increase in interest income was driven by a $12.8 billion, or 52.3%, increase in average loans, a $6.3 billion, or 49.4%, increase in total securities, and a $2.7 billion, or 74.7%, increase in average interest-bearing due from banks. The funding for these assets was driven primarily by a 57.0% increase in average interest-bearing liabilities, including an increase in average interest-bearing deposits of $17.1 billion compared to the same period in 2024. Net interest margin, on a tax-equivalent basis, increased 58 basis points compared to the same period in 2024, primarily due to cost and mix changes of loan balances and interest-bearing liabilities. Net interest spread increased 84 basis points during the same period. The Company expects to see continued volatility in the economic markets resulting from governmental responses to inflation and recessionary signs in the economy, as well as uncertainty about the impacts of recent tariffs. These changing conditions could have impacts on the balance sheet and income statement of the Company for the remainder of the year.

Current wording

The second financial objective is to increase net interest income through profitable loan and deposit growth and the optimization of the balance sheet. During the first quarter of 2026, the Company had an increase in net interest income of $136.7 million, or 34.4%, from the same period in 2025. The change in net interest income was primarily driven by an additional month of HTLF operations, higher purchase accounting accretion benefits, favorable repricing of deposits and loans in conjunction with lower short-term interest rates, and increases of $7.1 billion, or 21.9%, in average loans and $4.2 billion, or 26.2% in average securities. These increases were partially offset by a decrease of $2.6 billion, or 38.4% in average interest-bearing due from banks. The funding for these assets was driven primarily by an increase of 14.5% in average deposits compared to the first quarter of 2025, reflecting strong organic growth as well as the impact of acquired HTLF balances. Average interest-bearing deposits increased 15.2%, and noninterest-bearing demand deposit balances increased 12.5% compared to the first quarter of 2025. Net interest margin, on a tax-equivalent basis, increased 42 basis points compared to the same period in 2025, driven by favorable repricing of deposits and loans in conjunction with lower short-term interest rates. Net interest spread increased 55 basis points during the same period. The Company expects to see continued volatility in the economic markets resulting from governmental responses to inflation and recessionary signs in the economy, as well as uncertainty about the impacts of the conflict in Iran and tariffs. These changing conditions could have impacts on the balance sheet and income statement of the Company for the remainder of the year.

Previous wording

The third financial objective is to grow the Company’s revenue from noninterest sources. The Company seeks to grow noninterest revenues throughout all economic and interest rate cycles, while positioning itself to benefit in periods of economic growth. Noninterest income increased $44.6 million, or 28.1%, to $203.3 million for the three months ended September 30, 2025, compared to the same period in 2024. See greater detail below under Noninterest Income. The change is driven by increased HTLF-related fee income from trust income, deposit service charges, and bankcard fees. The Company continues to emphasize its asset management, brokerage, bankcard services, healthcare services, and treasury management businesses. For the three months ended September 30, 2025, noninterest income represented 30.0% of total revenue, compared to 39.1% for the same period in 2024. The recent economic changes have impacted fee income, especially those with assets tied to market values and interest rates.

Current wording

The third financial objective is to grow the Company’s revenue from noninterest sources. The Company seeks to grow noninterest revenues throughout all economic and interest rate cycles, while positioning itself to benefit in periods of economic growth. Noninterest income increased $38.6 million, or 23.2%, to $204.8 million for the three months ended March 31, 2026, compared to the same period in 2025. See greater detail below under Noninterest Income. The change is partially driven by one additional month in 2026 of HTLF-related fee income from trust income, deposit service charges, and bankcard fees. The Company continues to emphasize its asset management, brokerage, bankcard services, healthcare services, and treasury management businesses. For the three months ended March 31, 2026, noninterest income represented 27.7% of total revenue, compared to 29.5% for the same period in

Previous wording

The fourth financial objective is effective capital management. The Company places a significant emphasis on maintaining a strong capital position, which management believes promotes investor confidence, provides access to funding sources under favorable terms, and enhances the Company’s ability to capitalize on business growth and acquisition opportunities. The Company continues to maximize shareholder value through a mix of reinvesting in organic growth, evaluating acquisition opportunities that complement the Company’s strategies, increasing dividends over time, and appropriately utilizing a share repurchase program. At September 30, 2025, the Company had $7.4 billion in total shareholders’ equity. This is an increase of $3.9 billion, or 110.5%, compared to total shareholders’ equity at September 30, 2024. At September 30, 2025, the Company had a total risk-based capital ratio of 13.11%. The Company did not repurchase shares of common stock during the third quarter of 2025, except for shares acquired pursuant to the Company's share-based incentive programs. During the third quarter of 2025, the Company completed the previously announced redemption of its 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A at the redemption price of $10,000 per share.

Current wording

The fourth financial objective is effective capital management. The Company places a significant emphasis on maintaining a strong capital position, which management believes promotes investor confidence, provides access to funding sources under favorable terms, and enhances the Company’s ability to capitalize on business growth and acquisition opportunities. The Company continues to maximize shareholder value through a mix of reinvesting in organic growth, evaluating acquisition opportunities that complement the Company’s strategies, increasing dividends over time, and appropriately utilizing a share repurchase program. At March 31, 2026, the Company had $7.8 billion in total shareholders’ equity. This is an increase of $1.1 billion, or 16.0%, compared to total shareholders’ equity at March 31, 2025. At March 31, 2026, the Company had a total risk-based capital ratio of 13.53%. The Company repurchased 178,249 shares of common stock during the first quarter of 2026 at an average price of $111.62 for a total of $19.9 million. The Company also acquired shares pursuant to the share-based incentive programs during the first quarter of 2026.

Previous wording

The following is a summary regarding the Company’s earnings for the third quarter of 2025. The changes identified in the summary are explained in greater detail below. The Company recorded net income available to common shareholders of $180.4 million for the three-month period ended September 30, 2025, compared to net income available to common shareholders of $109.6 million for the same period a year earlier. Basic earnings per common share for the third quarter of 2025 were $2.38 per share ($2.36 per share fully-diluted) compared to $2.25 per common share ($2.23 per share fully-diluted) for the third quarter of 2024. Return on average assets and return on average common shareholders’ equity for the three-month period ended September 30, 2025 were 1.04% and 10.14%, respectively, compared to 1.01% and 12.63%, respectively, for the three-month period ended September 30, 2024.

Current wording

The following is a summary regarding the Company’s earnings for the first quarter of 2026. The changes identified in the summary are explained in greater detail below. The Company recorded net income available to common shareholders of $255.6 million for the three-month period ended March 31, 2026, compared to net income available to common shareholders of $79.3 million for the same period a year earlier. Basic earnings per common share for the first quarter of 2026 were $3.36 per share ($3.35 per share fully-diluted) compared to $1.22 per common share ($1.21 per share fully-diluted) for the first quarter of 2025. Return on average assets and return on average common shareholders’ equity for the three-month period ended March 31, 2026 were 1.47% and 13.70%, respectively, compared to 0.54% and 5.86%, respectively, for the three-month period ended March 31, 2025.

Previous wording

Net interest income for the three and nine-month periods ended September 30, 2025 increased $227.7 million, or 92.0%, and increased $607.8 million, or 83.0%, respectively, compared to the same periods in 2024. For the three-month period ended September 30, 2025, average earning assets increased by $22.1 billion, or 53.8%, and for the nine-month period ended September 30, 2025, they increased by $19.7 billion, or 48.7%, compared to the same periods in 2024. Net interest margin, on a tax-equivalent basis, increased to 3.04% for both the three and nine-month periods ended September 30, 2025, compared to 2.46% and 2.49%, respectively, for the same periods in 2024.

Current wording

Net interest income for the three-month period ended March 31, 2026 increased $136.7 million, or 34.4% compared to the same period in 2025. For the three-month period ended March 31, 2026, average earning assets increased by $9.6 billion, or 17.3% compared to the same period in 2025. Net interest margin, on a tax-equivalent basis, increased to 3.38% for the three-month period ended March 31, 2026, compared to 2.96%, respectively, for the same period in 2025.

Previous wording

The provision for credit losses increased by $4.5 million for the three-month period ended September 30, 2025 and increased by $87.5 million for the nine-month period ended September 30, 2025, as compared to the same periods in 2024. Provision expense for the nine-month period included $62.0 million to establish an allowance for credit losses on the acquired loans designated as non-PCD loans at the close of the transaction. See Note 13, “Acquisition” above. The remainder of the increase in provision was driven by loan growth, portfolio credit metric changes, and changes in macro-economic metrics in the current period as compared to the prior periods. The Company’s nonperforming loans increased $112.7 million to $132.0 million at September 30, 2025, compared to September 30, 2024. The ACL on loans as a percentage of total loans increased seven basis points to 1.07% as of September 30, 2025, compared to September 30, 2024. For a description of the Company’s methodology for computing the ACL, please see the summary discussion in the “Provision and Allowance for Credit Losses” section included below.

Current wording

The provision for credit losses decreased by $59.0 million for the three-month period ended March 31, 2026 as compared to the same period in 2025. Provision expense in 2025 included $62.0 million to establish an allowance for credit losses on the acquired loans designated as non-PCD loans at the close of the transaction. See Note 13, “Acquisition” above. The remainder of the increase in provision was driven by loan growth, portfolio credit metric changes, and changes in macro-economic metrics in the current period as compared to the prior periods. The Company’s nonperforming loans increased $50.4 million to $151.3 million at March 31, 2026, compared to March 31, 2025. The ACL on loans as a percentage of total loans increased three basis points to 1.06% as of March 31, 2026, compared to March 31, 2025. For a description of the Company’s methodology for computing the ACL, please see the summary discussion in the “Provision and Allowance for Credit Losses” section included below.

Previous wording

Noninterest income increased by $44.6 million, or 28.1%, for the three-month period ended September 30, 2025, and increased by $128.8 million, or 27.8%, for the nine-month period ended September 30, 2025, compared to the same periods in 2024. These changes are discussed in greater detail below under Noninterest Income.

Current wording

Noninterest income increased by $38.6 million, or 23.2%, for the three-month period ended March 31, 2026, compared to the same period in 2025. These changes are discussed in greater detail below under Noninterest Income.

Previous wording

Noninterest expense increased by $166.8 million, or 66.1%, for the three-month period ended September 30, 2025, and increased by $440.9 million, or 58.3%, for the nine-month period ended September 30, 2025, compared to the same periods in 2024. These changes are discussed in greater detail below under Noninterest Expense.

Current wording

Noninterest expense decreased by $3.9 million, or 1.0%, for the three-month period ended March 31, 2026, compared to the same period in 2025. These changes are discussed in greater detail below under Noninterest Expense.

Previous wording

Net interest income is a significant source of the Company’s earnings and represents the amount by which interest income on earning assets exceeds the interest expense paid on liabilities. The volume of interest-earning assets and the related funding sources, the overall mix of these assets and liabilities, and the rates paid on each affect net interest income. Net interest income for the three and nine-month periods ended September 30, 2025 increased $227.7 million, or 92.0%, and increased $607.8 million, or 83.0%, compared to the same periods in 2024. This increase is primarily driven by rate and mix changes related to the HTLF acquisition. For the three-month period ended September 30, 2025, margin included $40.7 million of net accretion related to the fair value adjustments discussed in Note 13, “Acquisition” above.

Current wording

Net interest income is a significant source of the Company’s earnings and represents the amount by which interest income on earning assets exceeds the interest expense paid on liabilities. The volume of interest-earning assets and the related funding sources, the overall mix of these assets and liabilities, and the rates paid on each affect net interest income. Net interest income for the three-month period ended March 31, 2026 increased $136.7 million, or 34.4%, compared to the same period in 2025. The change in net interest income was primarily driven by an additional month of HTLF operations, higher purchase accounting accretion benefits, favorable repricing of deposits and loans in conjunction with lower short-term interest rates, and increases of $7.1 billion, or 21.9%, in average loans and $4.2 billion, or 26.2% in average securities. These increases were partially offset by a decrease of $2.6 billion, or 38.4% in average interest-bearing due from banks.

Previous wording

Table 1 shows the impact of earning asset rate changes compared to changes in the cost of interest-bearing liabilities. As illustrated in this table, net interest spread for the three months ended September 30, 2025 increased 84 basis points as compared to the same period in 2024. Net interest margin for the three months ended September 30, 2025 increased 58 basis points compared to the same period in 2024. Net interest spread for the nine-month period ended September 30, 2025 increased by 81 basis points as compared to the same period in 2024. Net interest margin for the nine-month period ended September 30, 2025 increased by 55 basis points compared to the same period in 2024. The changes for both periods are driven by rate and balance sheet mix changes from the acquired HTLF balance sheet creating very favorable volume and rate variances. The cost of interest-bearing liabilities decreased 73 basis points from the third quarter of 2024 while the yield on earning assets increased 11 basis points compared to the same period. The cost of interest-bearing liabilities decreased 67 basis points for the nine-month period ended September 30, 2025 as compared to the same period in 2024 while the yield on earning assets increased 14 basis points compared to the same period. Earning asset balance increases have been primarily driven by higher average loans, increased securities balances, and increased interest-bearing due from banks balances. These variances have led to an increase in the Company’s net interest income during 2025, as compared to results for the same periods in 2024. The Company expects to see continued volatility in the economic markets and governmental responses to changes in the economy. These changing conditions could have impacts on the balance sheet and income statement of the Company for the remainder of the year. For the impact of the contribution from free funds, see the Analysis of Net Interest Margin within Table 2 below. Table 2 also illustrates how the changes in volume and interest rates have resulted in an increase in net interest income.

Current wording

Table 1 shows the impact of earning asset rate changes compared to changes in the cost of interest-bearing liabilities. As illustrated in this table, net interest spread for the three months ended March 31, 2026 increased 55 basis points as compared to the same period in 2025. Net interest margin for the three months ended March 31, 2026 increased 42 basis points compared to the same period in 2025. The change is driven by favorable repricing of deposits and loans in conjunction with lower short-term interest rates. The cost of interest-bearing liabilities decreased 54 basis points from the first quarter of 2025 while the yield on earning assets increased one basis point compared to the same period. Earning asset balance increases have been primarily driven by higher average loans and increased securities balances, partially offset by decreased interest-bearing due from banks balances. These variances have contributed to an increase in the Company’s net interest income during 2026, as compared to results for the same period in 2025. The Company expects to see continued volatility in the economic markets and governmental responses to changes in the economy. These changing conditions could have impacts on the balance sheet and income statement of the Company for the remainder of the year. For the impact of the contribution from free funds, see the Analysis of Net Interest Margin within Table 2 below. Table 2 also illustrates how the changes in volume and interest rates have resulted in an increase in net interest income.

Previous wording

The following table presents, for the periods indicated, the average earning assets and resulting yields, as well as the average interest-bearing liabilities and resulting yields, expressed in both dollars and rates. All average balances are daily average balances. The average yield on earning assets without the tax-equivalent basis adjustment would have been 5.53% for the three-month period ended September 30, 2025, and 5.41% for the same period in 2024. The average yield on earning assets without the tax-equivalent basis adjustment would have been 5.49% for the nine-month period ended September 30, 2025, and 5.35% for the same period in 2024.

Current wording

The following table presents, for the periods indicated, the average earning assets and resulting yields, as well as the average interest-bearing liabilities and resulting yields, expressed in both dollars and rates. All average balances are daily average balances. The average yield on earning assets without the tax-equivalent basis adjustment would have been 5.40% for the three-month period ended March 31, 2026, and 5.39% for the same period in 2025.

Previous wording

Table 2 presents the dollar amount of change in net interest income and margin due to volume and rate. Table 2 also reflects the effect that interest-free funds have on net interest margin. The average balance of interest-free funds (total earning assets less interest-bearing liabilities) increased $5.2 billion and increased $4.6 billion for the three and nine-month periods ended September 30, 2025, respectively, compared to the same periods in 2024. The benefit from interest-free funds decreased 26 basis points in the three and nine-month periods ended September 30, 2025, respectively, compared to the same periods in 2024.

Current wording

Table 2 presents the dollar amount of change in net interest income and margin due to volume and rate. Table 2 also reflects the effect that interest-free funds have on net interest margin. The average balance of interest-free funds (total earning assets less interest-bearing liabilities) increased $3.1 billion for the three-month period ended March 31, 2026, compared to the same period in 2025. The benefit from interest-free funds decreased 13 basis points in the three-month period ended March 31, 2026, compared to the same period in 2025.

Previous wording

Based on the factors above, management of the Company recorded $22.5 million as provision for credit losses for the three-month period ended September 30, 2025, as compared to $18.0 million for the same period in 2024. For the nine-month period ended September 30, 2025, management of the Company recorded $129.5 million as provision for credit losses, as compared to $42.1 million for the same period in 2024. As noted above, $62.0 million was recorded to establish an allowance for credit losses on the acquired loans designated as non-PCD loans at the close of the HTLF acquisition. See Note 13, “Acquisition” above. The increase in the three-month period and the remaining $25.5 million increase in provision in the nine-month period is the result of applying the methodology for computing the ACL, coupled with the impacts of the current and forecasted economic environment. As illustrated in Table 3 below, the ACL on loans increased seven basis points to 1.07% of total loans as of September 30, 2025, compared to September 30, 2024.

Current wording

Based on the factors above, management of the Company recorded $27.0 million as provision for credit losses for the three-month period ended March 31, 2026, as compared to $86.0 million for the same period in 2025. As noted above, $62.0 million was recorded to establish an allowance for credit losses on the acquired loans designated as non-PCD loans at the close of the HTLF acquisition in the first quarter of 2025. See Note 13, “Acquisition” above. The increase in the three-month period is the result of applying the methodology for computing the ACL, coupled with the impacts of the current and forecasted economic environment. As illustrated in Table 3 below, the ACL on loans increased three basis points to 1.06% of total loans as of March 31, 2026, compared to March 31, 2025.

Previous wording

Table 3 presents a summary of the Company’s ACL for the nine-month periods ended September 30, 2025 and 2024, and for the year ended December 31, 2024. Net charge-offs were $69.7 million for the nine-month period ended September 30, 2025, compared to $14.3 million for the same period in 2024. Approximately $48.9 million of the net charge-offs were related to loans acquired from HTLF. See “Credit Risk Management” under “Item 3. Quantitative and Qualitative Disclosures About Market Risk” in this report for information relating to nonaccrual loans, past due loans, restructured loans and other credit risk matters.

Current wording

Table 3 presents a summary of the Company’s ACL for the three-month period ended March 31, 2026 and 2025, and for the year ended December 31, 2025. Net charge-offs were $18.9 million for the three-month period ended March 31, 2026, compared to $35.9 million for the same period in 2025. See “Credit Risk Management” under “Item 3. Quantitative and Qualitative Disclosures About Market Risk” in this report for information relating to nonaccrual loans, past due loans, restructured loans and other credit risk matters.

Previous wording

Noninterest income increased by $44.6 million, or 28.1%, during the three-month period ended September 30, 2025, and increased $128.8 million, or 27.8%, during the nine-month period ended September 30, 2025, compared to the same periods in 2024. Table 4 above summarizes the components of noninterest income and the respective year-over-year comparison for each category.

Current wording

Noninterest income increased by $38.6 million, or 23.2%, during the three-month period ended March 31, 2026, compared to the same period in 2025. Table 4 above summarizes the components of noninterest income and the respective year-over-year comparison for each category.

Previous wording

Trust and securities processing income consists of fees earned on personal and corporate trust accounts, custody of securities services, trust investments and wealth management services, mutual fund assets, and alternative asset servicing. The increase in these fees for the three and nine-month periods ended September 30, 2025, compared to the same periods in 2024, was primarily due to an increase in trust services income primarily related to HTLF, and increases in fund services revenue and corporate trust revenue. For the three-month period ended September 30, 2025, trust income increased $6.4 million, or 43.0%, fund services revenue increased $4.0 million, or 9.4%, and corporate trust revenue increased $3.3 million, or 20.0%, compared to the same period in 2024. For the nine-month period ended September 30, 2025, trust services revenue increased $15.8 million, or 35.2%, fund services revenue increased $12.5 million, or 10.2%, and corporate trust revenue increased $9.0 million, or 19.5%, compared to the same period in 2024. The recent volatile markets have impacted the income in this category. Since trust and securities processing fees are primarily asset-based, which are highly correlated to the change in market value of the assets, the related income for the remainder of the year will be affected by changes in the securities markets. Management continues to emphasize sales of services to both new and existing clients as well as increasing and improving the distribution channels.

Current wording

Trust and securities processing income consists of fees earned on personal and corporate trust accounts, custody of securities services, trust investments and wealth management services, mutual fund assets, and alternative asset servicing. The increase in these fees for the three-month period ended March 31, 2026, compared to the same period in 2025, was primarily due to an increase in fund services revenue, corporate trust revenue, and trust services income. For the three-month period ended March 31, 2026, fund services revenue increased $8.8 million, or 20.5%, corporate trust revenue increased $3.4 million, or 19.4%, and trust income increased $2.6 million, or 13.8%, compared to the same period in 2025. The recent volatile markets have impacted the income in this category. Since trust and securities processing fees are primarily asset-based, which are highly correlated to the change in market value of the assets, the related income for the remainder of the year will be affected by changes in the securities markets. Management continues to emphasize sales of services to both new and existing clients as well as increasing and improving the distribution channels.

Previous wording

Service charges on deposit accounts for the three-month period ended September 30, 2025 increased $9.1 million, or 45.1%, and increased $22.4 million, or 35.4%, for the nine-month period ended September 30, 2025. This increase was largely driven by the HTLF acquisition and increased service charge income from acquired deposit accounts.

Current wording

Service charges on deposit accounts for the three-month period ended March 31, 2026 increased $2.0 million, or 7.3%, compared to the same period in 2025. This increase was largely driven by increased commercial service charge income related to one additional month in 2026 of HTLF revenue.

Previous wording

Brokerage fees for the three-month period ended September 30, 2025 increased $4.7 million, or 30.0%, and increased $16.2 million, or 37.7%, for the nine-month period ended September 30, 2025, compared to the same periods in 2024. The changes in the three-month and nine-month periods were driven by 12b-1 fees and money market share revenue.

Current wording

Brokerage fees for the three-month period ended March 31, 2026 increased $3.0 million, or 16.5%. The changes were driven by 12b-1 fees and money market share revenue.

Previous wording

Bankcard fees for the three and nine-month periods ended September 30, 2025 increased $7.2 million, or 32.0%, and increased $18.2 million, or 27.2%, respectively, as compared to the same periods in 2024. This increase was driven by higher interchange income, partially offset by higher rebate and reward costs primarily related to purchase volume from the HTLF acquisition.

Current wording

Bankcard fees for the three-month period ended March 31, 2026 increased $2.6 million, or 9.8%, compared to the same period in 2025. This increase was driven by higher interchange income, partially offset by higher reward costs.

Previous wording

Investment securities (losses) gains, net for the three and nine-month periods ended September 30, 2025 decreased $6.7 million, or 256.0%, and increased $18.7 million, or 184.5%, respectively, compared to the same periods in 2024. The decrease for the three-month period ended September 30, 2025, was primarily driven by $7.1 million in net losses on the Company's marketable securities during the third quarter. The increase for the nine-month period was driven by the net gains from the Company's investment in Voyager Technologies, Inc., which completed its initial public offering in June 2025. The income in this category is highly correlated to the change in market value of the assets, and the related income for the remainder of the year will be affected by changes in the securities markets. The Company’s investment portfolio is continually evaluated for opportunities to improve its performance and risk profile relative to market conditions and the Company’s interest rate expectations. This can result in differences from quarter to quarter in the amount of realized gains or losses on this portfolio.

Current wording

Investment securities gains (losses), net for the three-month period ended March 31, 2026 increased $7.8 million, or 163.7%, compared to the same period in 2025. The increase in investment securities gains was primarily driven by a $3.0 million gain on the sale of a non-marketable security in the first quarter of 2026, coupled with decreased valuations in the Company's non-marketable securities in the first quarter of 2025. The income in this category is highly correlated to the change in market value of the assets, and the related income for the remainder of the year will be affected by changes in the securities markets. The Company’s investment portfolio is continually evaluated for opportunities to improve its performance and risk profile relative to market conditions and the

Previous wording

Noninterest expense increased $166.8 million, or 66.1%, and increased $440.9 million, or 58.3%, for the three and nine-month periods ended September 30, 2025, respectively, compared to the same periods in 2024. Table 5 above summarizes the components of noninterest expense and the respective year-over-year comparison for each category. For the first nine months of 2025, noninterest expense included $102.3 million in total acquisition-related and other nonrecurring costs, compared to $12.6 million in the same period in 2024. It also includes $62.4 million in other intangible amortization expense related to the HTLF acquisition.

Current wording

Noninterest expense decreased $3.9 million, or 1.0%, for the three-month period ended March 31, 2026, respectively, compared to the same period in 2025. Table 5 above summarizes the components of noninterest expense and the respective year-over-year comparison for each category. For the first three months of 2026, noninterest expense included $4.4 million in total acquisition-related and other nonrecurring costs, compared to $53.2 million in the same period in 2025.

Previous wording

Salaries and employee benefits increased by $73.3 million, or 49.9%, and increased $222.4 million, or 51.4%, for the three and nine-month periods ended September 30, 2025, respectively, compared to the same periods in 2024. Salaries and wages expense increased $38.2 million, or 42.5%, and increased $102.6 million, or 39.0%, for the three and nine-month periods ended September 30, 2025, respectively, compared to the same periods in 2024. Bonus and commission expense increased $20.5 million, or 62.9%, and increased $89.6 million, or 99.6%, for the three and nine-month periods ended September 30, 2025, respectively, compared to the same periods in 2024. Employee benefits expense increased $14.7 million, or 59.5%, and increased $30.3 million, or 37.9%, for the three and nine-month periods ended September 30, 2025, respectively, compared to the same periods in 2024. The variances in salaries and employee benefits are primarily driven by increased severance, retention bonuses, and change in control payments made to HTLF associates, as well as higher bonus expense due to higher company performance.

Current wording

Salaries and employee benefits decreased by $1.7 million, or 0.8%, for the three-month period ended March 31, 2026, respectively, compared to the same period in 2025. Bonus and commission expense decreased $21.3 million, or 29.3%, for the three-month period ended March 31, 2026 compared to the same period in 2025. This decrease is offset by an increase in salary and wage expense of $13.5 million, or 12.3% and an increase in employee benefits expense of $6.1 million, or 15.9%, for the three-month period ended March 31, 2026 compared to the same period in 2025. The variances in salaries and employee benefits are primarily driven by decreased severance, retention bonuses, and change in control payments made to HTLF associates in 2025.

Previous wording

Legal and consulting expense increased $12.1 million, or 127.1%, and $34.7 million, or 102.2%, for the three and nine-month periods ended September 30, 2025, respectively, compared to the same periods in 2024. The increase in both periods is primarily due to non-recurring transaction costs associated with the acquisition.

Current wording

Legal and consulting expense decreased $19.5 million, or 68.2%, for the three-month period ended March 31, 2026 compared to the same period in 2025. The decrease is primarily due to non-recurring transaction costs associated with the acquisition in 2025.

Previous wording

The Company’s effective tax rate was 19.4% for the nine months ended September 30, 2025, compared to 19.0% for the same period in 2024. The increase in the effective tax rate in 2025 is primarily attributable to a smaller portion of income being earned from tax-exempt municipal securities, along with an increase in the state marginal tax rate.

Current wording

The Company’s effective tax rate was 21.1% for the three months ended March 31, 2026, compared to 12.6% for the same period in 2025. The increase in the effective tax rate in 2026 is mainly due to more favorable discrete tax items in 2025, including a benefit from remeasuring deferred tax assets after the HTLF acquisition increased the state marginal tax rate. Additionally, a smaller proportion of pre-tax income in 2026 was earned from tax-exempt municipal securities.

Previous wording

For the nine-month period ended September 30, 2025, Commercial Banking net income increased $115.6 million, or 50.2%, to $345.9 million, compared to the same period in 2024. Net interest income increased $440.6 million, or 90.4%, for the nine-month period ended September 30, 2025, compared to the same period in 2024, primarily driven by the acquisition of HTLF, as well as organic legacy-UMB loan growth, and earning asset mix changes. Provision for credit losses increased $68.8 million for the period, driven by the acquisition of HTLF as well as portfolio metric changes and changes in macro-economic metrics in 2025 as compared to 2024. Noninterest income increased $32.3 million, or 31.0%, compared to the same period in 2024, primarily due to increases of $15.7 million in deposit service charges, $14.6 million in other income driven by increased derivative income, increased life insurance income, and a legal settlement in the third quarter of 2025, and $10.7 million in bankcard fees. These increases were partially offset by a decrease of $10.7 million in investment security gains. Noninterest expense increased $259.0 million, or 95.3%, to $530.7 million for the nine-month period ended September 30, 2025, compared to the same period in 2024. This increase was driven by an increase of $160.8 million in technology, service, and overhead expenses, and an increase of $79.3 million in salaries and employee benefit expense, both driven by the acquisition. Additionally, there were increases of $5.8 million in marketing and business development, $5.2 million in regulatory fees, $3.8 million in processing fees, and $2.2 million in legal and consulting expense.

Current wording

For the three-month period ended March 31, 2026, Commercial Banking net income increased $113.1 million, or 181.3%, to $175.5 million, compared to the same period in 2025. Net interest income increased $91.4 million, or 33.4%, for the three-month period ended March 31, 2026, compared to the same period in 2025, primarily driven by an additional month of activity from the acquisition of HTLF, as well as organic legacy-UMB loan growth, and earning asset mix changes. Provision for credit losses decreased $43.0 million for the period, driven by the acquisition of HTLF as well as portfolio metric changes and changes in macro-economic metrics in 2026 as compared to 2025. Noninterest income increased $9.1 million, or 24.4%, compared to the same period in 2025, primarily due to increases of $5.8 million in other income driven by increases in gains recorded for recoveries of loans previously charged off by HTLF and increased derivative income, $1.8 million in bankcard fees, and $1.6 million in deposit service charges. Noninterest expense decreased $7.6 million, or 4.4%, to $165.5 million for the three-month period ended March 31, 2026, compared to the same period in 2025. This decrease was driven by a decrease of $15.5 million in technology, service, and overhead expenses, partially offset by increases of $2.8 million in salaries and employee benefit expense, $2.8 million in marketing and business development, and $1.9 million in other noninterest expense.

Previous wording

For the nine-month period ended September 30, 2025, Institutional Banking net income increased $41.5 million, or 36.8%, to $154.1 million, compared to the same period last year. Net interest income increased $43.8 million, or 30.3%, compared to the same period last year, due to an increase in funds transfer pricing resulting from higher deposit balances. Provision for credit losses increased $0.6 million for the period, driven by portfolio metric changes and changes in macro-economic metrics in 2025 compared to 2024. Noninterest income increased $42.0 million, or 14.7%, to $327.2 million for the nine-month period September 30, 2025, compared to the same period in 2024. This increase was due to increases of $21.6 million in trust and securities processing income driven by higher fund services and corporate trust revenue, $13.8 million in brokerage income due to increased 12b-1 and money market revenue, $3.8 million in deposit service charges, $1.3 million in bankcard fees, and $1.0 million in bond trading income. Noninterest expense increased $32.9 million, or 11.3%, primarily driven by increases of $21.3 million in salaries and employee benefits expense, $7.4 million in processing fees, $2.0 million increase in technology, service, and overhead expense, $1.4 million in marketing and business development, and $1.1 million in bankcard expense.

Current wording

For the three-month period ended March 31, 2026, Institutional Banking net income increased $17.6 million, or 35.1%, to $67.6 million, compared to the same period last year. Net interest income increased $16.1 million, or 26.4%, compared to the same period last year, due to an increase in funds transfer pricing resulting from higher deposit balances. Noninterest income increased $18.0 million, or 17.4%, to $121.8 million for the three-month period March 31, 2026, compared to the same period in 2025. This increase was due to increases of $12.1 million in trust and securities processing income driven by higher fund services and corporate trust revenue, $3.0 million in brokerage income due to increased 12b-1 and money market revenue, and $1.8 million in bond trading income. Noninterest expense increased $5.7 million, or 5.3%, primarily driven by increases of $3.5 million in salaries and employee benefits expense and a $1.6 million increase in technology, service, and overhead expense.

Previous wording

For the nine-month period ended September 30, 2025, Personal Banking net loss improved $8.8 million, or 40.4%, to a net loss of $12.9 million, as compared to the same period in 2024. Net interest income increased $123.4 million, or 123.8%, compared to the same period last year driven by the acquisition of HTLF, as well as organic legacy-UMB loan growth, and earning asset mix change. Provision for credit losses increased $18.1 million for the period, driven by the acquisition of HTLF as well as by portfolio metric changes and changes in macro-economic metrics in 2025 as compared to 2024. Noninterest income increased $54.5 million, or 74.1%, for the same period primarily driven by increases of $28.4 million in investment securities gains, $13.6 million in trust and securities processing income, $5.1 million in bankcard fees, $2.9 million in deposit service charges, and $2.3 million in brokerage income. Noninterest expense increased $149.1 million, or 76.7%, primarily due to increases of $73.6 million in technology, service, and overhead expenses, and $46.8 million in salaries and employee benefits expense, both driven by the HTLF acquisition. Additionally, there were increases of $9.0 million in other expense driven by increased charitable contributions, $5.6 million in supplies and services, $4.3 million in processing fees, $2.9 million in marketing and business development, $2.4 million in regulatory fees, $2.1 million in equipment, and $1.5 million in bankcard expenses.

Current wording

For the three-month period ended March 31, 2026, Personal Banking net income improved $49.4 million, or 158.8%, to net income of $18.3 million, as compared to a net loss of $31.1 million in the same period in 2025. Net interest income increased $29.2 million, or 46.6%, compared to the same period last year driven by an additional month of activity from the acquisition of HTLF, as well as organic legacy-UMB loan growth, and earning asset mix change. Provision for credit losses decreased $16.1 million for the period, driven by the acquisition of HTLF as well as by portfolio metric changes and changes in macro-economic metrics in 2026 as compared to 2025. Noninterest income increased $11.5 million, or 45.6%, for the same period primarily driven by increases of $8.2 million in investment securities gains and $2.5 million in trust and securities processing income. Noninterest expense decreased $2.0 million, or 1.9%, primarily due to a decrease of $8.1 million in technology, service, and overhead expenses. This decrease is partially offset by increases of $3.9 million in salaries and employee benefits expense and $1.4 million in marketing and business development.

Previous wording

Total assets of the Company increased $24.4 billion, or 51.3%, as of September 30, 2025, compared to September 30, 2024, primarily due to increases of $12.7 billion, or 50.9%, in loan balances, $6.4 billion, or 90.7%, in securities available for sale, $1.6 billion in goodwill, and $1.3 billion, or 19.5%, in interest-bearing due from bank.

Current wording

Total assets of the Company increased $3.3 billion, or 4.8%, as of March 31, 2026, compared to March 31, 2025, primarily due to increases of $4.2 billion, or 11.7%, in loan balances and $2.8 billion, or 25.4%, in securities available for sale, partially offset by a decrease of $4.2 billion, or 42.4% in interest-bearing due from bank.

Previous wording

As of September 30, 2025 and December 31, 2024, commercial real estate loans comprised approximately 44.0% and 39.5%, respectively, of the Company's loan portfolio. Commercial real estate loans generally involve a greater degree of credit risk than consumer real estate loans because they typically have larger balances and are more affected by adverse conditions in the economy. Because payments on loans secured by commercial real estate often depend upon the successful operation and management of the properties and the businesses which operate from within them, repayment of such loans may be affected by factors outside the borrower’s control, such as adverse conditions in the real estate market or the economy or changes in government regulations. In recent years, commercial real estate markets have been particularly impacted by the economic disruption resulting from the COVID-19 pandemic. The COVID-19 pandemic has also been a catalyst for the evolution of various remote work options, which could impact the long-term performance of some types of office properties within our commercial real estate portfolio. Due to these risks, the Company is actively monitoring its exposure to commercial real estate.

Current wording

As of March 31, 2026 and December 31, 2025, commercial real estate loans comprised approximately 41.4% and 42.2%, respectively, of the Company's loan portfolio. Commercial real estate loans generally involve a greater degree of credit risk than consumer real estate loans because they typically have larger balances and are more affected by adverse conditions in the economy. Because payments on loans secured by commercial real estate often depend upon the successful operation and management of the properties and the businesses which operate from within them, repayment of such loans may be affected by factors outside the borrower’s control, such as adverse conditions in the real estate market or the economy or changes in government regulations. In recent years, commercial real estate markets have been particularly impacted by economic disruption and the evolution of various remote work options, which could impact the long-term performance of some types of office properties within our commercial real estate portfolio. Due to these risks, the Company is actively monitoring its exposure to commercial real estate.

Previous wording

Generally, these loans are made for investment and real estate development or working capital and business expansion purposes and are primarily secured by real estate with a maximum loan-to-value of 80%. Most of these properties are non-owner occupied and have guarantees as additional security. The Company’s investment CRE portfolio (which includes non-owner occupied and construction loans) totaled 28.9% and 28.5% of total Company loans as of September 30, 2025 and December 31, 2024, respectively. The average investment CRE loan was approximately $3.4 million and $7.2 million, as of September 30, 2025 and December 31, 2024, respectively.

Current wording

Generally, these loans are made for investment and real estate development or working capital and business expansion purposes and are primarily secured by real estate with a maximum loan-to-value of 80%. Most of these properties are non-owner occupied and have guarantees as additional security. The Company’s investment CRE portfolio (which includes non-owner occupied and construction loans) totaled 26.8% and 27.5% of total Company loans as of March 31, 2026 and December 31, 2025, respectively. The average investment CRE loan was approximately $3.7 million and $3.6 million, as of March 31, 2026 and December 31, 2025, respectively.

Previous wording

The Company’s investment portfolio contains trading, AFS, and HTM securities, as well as FRB stock, FHLB stock, and other miscellaneous investments. Investment securities totaled $19.8 billion as of September 30, 2025, and $13.7 billion as of December 31, 2024, and comprised 29.9% and 28.5% of the Company’s earning assets, respectively, as of those dates. A significant driver in the increase in the Company's investment portfolio was the acquisition of HTLF and its bond portfolio, which added total securities with an acquired fair value of $3.7 billion at January 31, 2025.

Current wording

The Company’s investment portfolio contains trading, AFS, and HTM securities, as well as FRB stock, FHLB stock, and other miscellaneous investments. Investment securities totaled $20.1 billion as of both March 31, 2026 and December 31, 2025, and comprised 29.8% and 29.9% of the Company’s earning assets, respectively, as of those dates.

Previous wording

The Company’s AFS securities portfolio comprised 67.6% of the Company’s total securities portfolio at September 30, 2025 and 56.9% at December 31, 2024. The Company’s AFS securities portfolio provides liquidity as a result of the composition and average life of the underlying securities. This liquidity can be used to fund loan growth or to offset the outflow of traditional funding sources. The average life of the AFS securities portfolio was 78.3 months at September 30, 2025, compared to 56.0 months at December 31, 2024, and 55.4 months at September 30, 2024. In addition to providing a potential source of liquidity, the AFS securities portfolio can be used as a tool to manage interest rate sensitivity. The Company’s goal in the management of its AFS securities portfolio is to maximize return within the Company’s parameters of liquidity goals, interest rate risk, and credit risk.

Current wording

The Company’s AFS securities portfolio comprised 68.1% of the Company’s total securities portfolio at both March 31, 2026 and December 31, 2025. The Company’s AFS securities portfolio provides liquidity as a result of the composition and average life of the underlying securities. This liquidity can be used to fund loan growth or to offset the outflow of traditional funding sources. The average life of the AFS securities portfolio was 70.2 months at March 31, 2026, compared to 74.8 months at December 31, 2025, and 77.5 months at March 31, 2025. In addition to providing a potential source of liquidity, the AFS securities portfolio can be used as a tool to manage interest rate sensitivity. The Company’s goal in the management of its AFS securities portfolio is to maximize return within the Company’s parameters of liquidity goals, interest rate risk, and credit risk.

Previous wording

Management expects collateral pledging requirements for public funds, loan demand, and deposit funding to be the primary factors impacting changes in the level of AFS securities. There were $11.6 billion and $10.5 billion of securities pledged to secure U.S. Government deposits, other public deposits, certain trust deposits, derivative transactions, and repurchase agreements at September 30, 2025 and December 31, 2024, respectively.

Current wording

Management expects collateral pledging requirements for public funds, loan demand, and deposit funding to be the primary factors impacting changes in the level of AFS securities. There were $12.7 billion and $13.4 billion of securities pledged to secure U.S. Government deposits, other public deposits, certain trust deposits, derivative transactions, and repurchase agreements at March 31, 2026 and December 31, 2025, respectively.