UMB Financial Corporation Announces Second Quarter 2005 Earnings

"2005 continues to be a year of growth for UMB," said MarinerKemper, chairman and CEO of UMB Financial Corporation. "Our commercialloan portfolio is up 15.5 percent year over year and 11.6 percentquarter over quarter due to a renewed focus on sales efforts,increased lending authorities and new incentive plans for businessdevelopment officers. Our home equity loans are up $42.4 million or 81percent year over year due to a successful marketing campaign.Additionally, we continue to see an increase in net new consumercustomers."

"During the first half of the year, our emphasis has been onbecoming more efficient. We finalized agreements to sell 10 of ourbranches and continued to combine common operations across thecompany," said Peter deSilva, president and COO of UMB FinancialCorporation. "Our Asset Management business continued to show solidgrowth primarily driven by strong net flows into the UMB Scout Funds.Also, trust income from our Investment Services Group has shown a 16.2percent increase year over year reflecting growth in both the mutualfund and alternative services client base. In order to support thegrowth of our retail business, we are adding four new banking centersthe second half of the year."

Net interest income for the second quarter of 2005 increased $3.1million or 6.9 percent compared to the same period in 2004 dueprimarily to higher loan balances and improved yields. Total loansincreased $347 million or 12.2 percent from 2004. The net interestmargin was 3.29 percent for the second quarter of 2005 compared to3.16 percent for the same period in 2004.

Noninterest income increased $6.7 million or 12 percent for thethree months ended June 30, 2005 compared to the same period in 2004.The increase was primarily due to higher trust and securitiesprocessing fees, higher service charges on deposits and a one-timegain of $1.2 million on the sale of bank property.

Noninterest expense increased $2.4 million or 2.7 percent for thethree months ended June 30, 2005 compared to the same period in 2004.This increase is due in part to higher bankcard expenses andcontributions.

The effective tax rate was 28.4 percent for the second quarter of2005 as compared to 20.9 percent for the second quarter of 2004. Theincrease in effective tax rate is a result of net tax-exempt incomerepresenting a smaller percentage of total income.

For the three months ended June 30, 2005, average loans were $3.06billion compared to $2.76 billion for the same period in 2004. Averagedeposits remained steady at $5.0 billion for the three months endedJune 30, 2005, compared to the same period in 2004. As of June 30,2005, UMB had total shareholders' equity of $827 million.

The quality of the company's loan portfolio remains high asnonperforming loans at June 30, 2005 totaled $13.1 million compared to$18.6 million a year earlier. As a percentage of total loans,nonperforming loans decreased to 0.41 percent of loans as of June 30,2005 compared to 0.65 percent of loans as of June 30, 2004.Nonperforming loans are defined as nonaccrual loans and loans morethan 90 days past due. The company's allowance for loan losses totaled$39.8 million or 1.24 percent of total loans as of June 30, 2005,compared to $44.7 million, or 1.57 percent of total loans as of June30, 2004.

Year-to-Date

Earnings for the six months ended June 30, 2005 were $25.2 millionor $1.17 per share ($1.16 diluted). This is an increase of $6.0million or 31.4 percent compared to the prior year earnings of $19.2million or $0.88 per share ($0.88 diluted).

Net interest income for the year to date June 30, 2005 increased$2.4 million or 2.7% compared to the same period in 2004 due primarilyto higher loan balances and yields. Net interest margin was 3.13percent for the year to date June 30, 2005 compared to 3.10 percentfor the same period in 2004.

Noninterest income increased $11.7 million or 10.2 percent for thesix months ended June 30, 2005 compared to the same period in 2004.The increase was driven primary by one-time gains, as well as anincrease in trust income and service charge income. Trust incomeincreased by $3.4 million due to increases in assets under management.Service charge income increased by $2.2 million primarily because of a$3.9 million increase in overdraft and non-sufficient fund fees,partially offset by a decrease in corporate service charge income.Gains of $3.8 million were recognized in 2005 primarily from a $2.4million gain on the condemnation sale of one of the bank's downtownKansas City branches and a $1.2 million gain on the sale of land nextto another Kansas City branch. Finally, there was an increase inincome of $2.8 million related to the sale of the employee benefitaccounts in 2004 as the final earnout payment was received in 2005.

Noninterest expense increased $5.8 million or 3.3 percent for theyear to date June 30, 2005 compared to the same period in 2004primarily due to the implementation of a voluntary separation (earlyretirement) plan. This plan resulted in a one-time charge ofapproximately $4.4 million related to 102 employees who accepted theoffer. Other increases are attributable in part to higher bankcardexpenses and contributions.

The company declared its regular quarterly dividend of $0.22 pershare to be paid on October 1, 2005, to shareholders of record at theclose of business on September 12, 2005.

About UMB

UMB Financial Corporation is a multi-bank holding companyheadquartered in Kansas City, Mo., offering complete banking andrelated financial services to both individual and business customers.Its banking subsidiaries own and operate 138 banking centersthroughout Missouri, Illinois, Colorado, Kansas, Oklahoma and Nebraskain addition to a loan production office in Arizona. Subsidiaries ofthe holding company and the lead bank, UMB Bank, n.a., include aninvestment services group based in Milwaukee, Wisconsin, a trustmanagement company in South Dakota, and single-purpose companies thatdeal with brokerage services, consulting services and insurance.

Forward-Looking Statements

This release contains forward-looking statements of expectedfuture developments. We wish to ensure such statements are accompaniedby meaningful cautionary statements pursuant to safe harborestablished by the Private Securities Litigation Reform Act of 1995.The forward-looking statements in the release refer to theexpectations regarding continuing operating improvement and othermatters. These forward-looking statements reflect management'sexpectations and are based on currently available data; however,actual results are subject to future events and uncertainties, whichcould materially affect actual performance. Our future performanceinvolves a number of risks and uncertainties. Risks and uncertaintiesthat could affect such performance include, but are not limited to:changing loan demand, the ability of customers to repay loans, changesin consumer saving habits, increases in employee costs, changes ininterest rates, competition, and changes in economic conditions orregulatory requirements. Any forward-looking statements should be readin conjunction with information about risks and uncertainties setforth in the company's Securities and Exchange Commission reports,including its annual report and Form 10-K for the year ended December31, 2004.
UMB Financial Corporation
CONSOLIDATED BALANCE SHEETS
-------------------------------------------------------------------
(all dollars in thousands) (unaudited)
June 30,
Assets 2005 2004
------ -------------------------
Loans:
Commercial, financial and
agricultural $ 1,441,047 $ 1,247,257
Real estate construction 48,023 23,885
Consumer (net of unearned interest) 962,870 947,619
Real estate 737,269 622,890
Leases 5,565 6,441
Allowance for loan losses (39,756) (44,744)
-------------------------
Net loans 3,155,018 2,803,348
Securities available for sale:
U.S. Treasury and agencies 2,047,804 2,096,404
State and political subdivisions 553,696 379,113
Commercial paper and other - -
-------------------------
Total securities available for
sale 2,601,500 2,475,517
Securities held to maturity:
State and political subdivisions 121,330 244,770
Federal Reserve Bank stock and other 12,051 8,519
Federal funds and resell agreements 283,780 374,988
Interest bearing due from banks 1,834 1,834
Trading securities 64,004 63,525
-------------------------
Total earning assets 6,239,517 5,972,501
Cash and due from banks 368,319 563,860
Bank premises and equipment, net 225,156 215,075
Accrued income 39,146 37,410
Goodwill on purchased affiliates 59,958 58,884
Other intangibles 4,488 5,230
Other assets 43,068 79,941
-------------------------
Total assets $ 6,979,652 $ 6,932,901
=========================


Liabilities
-----------
Deposits:
Noninterest - bearing demand $ 1,956,022 $ 1,981,441
Interest - bearing demand and
savings 2,314,165 2,195,177
Time deposits under $100,000 594,112 662,112
Time deposits of $100,000 or more 201,399 174,075
-------------------------
Total deposits 5,065,698 5,012,805
Federal funds and repurchase agreements 979,482 984,810
Short-term debt 23,268 69,866
Long-term debt 38,538 15,252
Accrued expenses and taxes 32,569 22,217
Other liabilities 13,139 21,986
-------------------------
Total liabilities 6,152,694 6,126,936
-------------------------

Shareholders' Equity
--------------------
Common stock 27,528 27,528
Capital surplus 727,880 726,480
Unearned compensation (2,198) -
Retained earnings 321,667 291,623
Accumulated other comprehensive loss (11,711) (11,531)
Treasury stock (236,208) (228,135)
-------------------------
Total shareholders' equity 826,958 805,965
-------------------------
Total liabilities and
shareholders' equity $ 6,979,652 $ 6,932,901
=========================

UMB Financial Corporation
Consolidated Statements of Income
----------------------------------------------------------------------
(unaudited, dollars in thousands
except share and per share data)

Three Months Ended Six Months Ended
June 30, June 30,
Interest Income 2005 2004 2005 2004
--------------- ------------------------------------------------
Loans $ 43,009 $ 32,667 $ 80,868 $ 65,313
Securities:
Taxable Interest 14,935 13,761 31,598 28,898
Tax-exempt interest 4,756 4,724 9,128 9,718
-----------------------------------------------
Total
securities
income 19,691 18,485 40,726 38,616
Federal funds and
resell agreements 1,360 764 2,676 1,660
Trading securities and
other 633 465 1,153 933
-----------------------------------------------
Total interest
income 64,693 52,381 125,423 106,522
-----------------------------------------------

Interest Expense
----------------
Deposits 10,520 6,007 20,248 12,406
Federal funds and
repurchase agreements 6,345 1,968 12,576 4,339
Short-term debt 105 39 174 88
Long-term debt 516 226 791 469
-----------------------------------------------
Total interest
expense 17,486 8,240 33,789 17,302
-----------------------------------------------
Net interest income 47,207 44,141 91,634 89,220
Provision for loan
losses 750 1,731 1,500 3,533
-----------------------------------------------
Net interest
income after
provision for
loan losses 46,457 42,410 90,134 85,687
-----------------------------------------------

Noninterest Income
------------------
Trust and securities
processing 19,968 17,960 40,466 37,073
Trading and investment
banking 4,855 4,928 9,512 10,015
Service charges on
deposits 21,517 18,357 39,494 37,169
Insurance fees and
commisions 915 1,011 1,743 1,889
Brokerage fees 1,510 1,740 3,060 4,341
Bankcard fees 8,492 7,958 16,114 15,432
Gain on sale of other
assets, net 1,209 - 3,801 -
Gain on sale of
employee benefit
accounts - - 3,600 764
Gains (losses) on sales
of securities
available for sale,
net (34) - (34) 141
Other 4,016 3,783 8,252 7,524
-----------------------------------------------
Total noninterest
income 62,448 55,737 126,008 114,348
-----------------------------------------------

Noninterest Expense
-------------------
Salaries and employee
benefits 48,349 48,575 100,410 97,323
Occupancy, net 6,471 6,546 12,888 12,899
Equipment 11,252 10,881 21,728 21,644
Supplies, postage and
telephone 5,681 5,654 11,230 11,230
Marketing and business
development 3,607 3,947 6,568 7,455
Processing fees 5,524 5,050 11,087 10,300
Legal and consulting 1,895 2,165 3,723 4,413
Amortization of other
intangibles 186 186 371 371
Other 6,936 4,510 13,221 9,830
-----------------------------------------------
Total noninterest
expense 89,901 87,514 181,226 175,465
-----------------------------------------------

Income before income
taxes 19,004 10,633 34,916 24,570
Income tax provision 5,391 2,219 9,724 5,398
------------------------------------------------
Net income $ 13,613 $ 8,414 $ 25,192 $ 19,172
================================================
Per Share Data
----------------
Net income- Basic $ 0.63 $ 0.39 $ 1.17 $ 0.88
Net income- Diluted 0.63 0.39 1.16 0.88
Dividends 0.22 0.21 0.44 0.42
Weighted average
shares outstanding 21,592,593 21,675,192 21,612,601 21,681,060
-----------------------------------------------

UMB Financial Corporation
Consolidated Statements of Shareholders' Equity
(all dollars in thousands)(unaudited)
----------------------------------------------------------------------

Accumulated
Other
Compre-
Unearned hensive
Common Capital compens- Retained Income Treasury
Stock Surplus ation Earnings (Loss) Stock Total
----------------------------------------------------------------------
Balance -
Jan. 1,
2004 $27,528 $726,405 $ - $281,556 $3,183 $(226,749)$811,923
Compre-
hensive
income
Net
income - - 19,172 - - 19,172
Other
Compre-
hensive
income,
change in
unrealized
gains (losses)
on securities
of $23,130,
net of tax
of $8,506 and
the
reclassif-
ication
adjustment
for included
in net income
of $141
net of
tax $51 - - - (14,714) - (14,714)
Total --------
comprehensive
income 4,458
Cash
dividends
($0.42
per share) - - (9,105) - - (9,105)
Purchase of
treasury
stock - - - - (1,822) (1,822)
Sale of
treasury
stock - - - - 3 3
Exercise of
stock
options - 75 - - 433 508
---------------------------------------------------------------
Balance -
June
30,
2004 $27,528 $726,480 $ - $291,623 $(11,531) $(228,135)$805,965
===============================================================

Balance -
Jan. 1,
2005 $27,528 $726,595 $ - $305,986 $(10,619) $(230,308)$819,182
Compre-
hensive
income
Net income - - 25,192 - - 25,192
Other
Compre-
hensive
income,
change in
unrealized
gains (losses)
on securities
of $1,748
net of tax
of $634
reclass-
ification
adjustment
for included
in net loss
of $34
net of
tax $12 - - - (1,092) - (1,092)
Total
compre-
hensive
income 24,100
Cash ------
dividends
($0.44 per
share) - - (9,511) - - (9,511)
Purchase of
treasury
stock - - - - (7,480) (7,480)
Issuance
of
restricted
stock 1,123 (2,346) 1,223 -
Recognition
of
restricted
stock
compen-
sation - - 148 148
Sale of
treasury
stock - 83 - - 82 165
Exercise of
stock
options - 79 - - 275 354
----------------------------------------------------------------------
Balance -
June
30,
2005 $27,528 $727,880 $(2,198)$321,667 $(11,711) $(236,208)$826,958
======================================================================

UMB Financial Corporation
Average Balances / Yields and Rates
----------------------------------------------------------------------
(tax - equivalent basis)
-------------------------
(all dollars in thousands)
(unaudited) Six Months Ended June 30,
2005 2004
--------------------- ---------------------
Average Average Average Average
Assets Balance Yield/Rate Balance Yield/Rate
--------------------- ---------------------
Loans, net of unearned
interest $2,964,944 5.51 % $2,730,978 4.82 %
Securities:
Taxable 2,380,496 2.68 2,436,347 2.39
Tax-exempt 598,662 4.59 624,251 4.77
-------------------- --------------------
Total securities 2,979,158 3.06 3,060,598 2.87
Federal funds and resell
agreements 190,985 2.83 280,220 1.19
Other earning assets 66,785 3.58 66,734 2.91
-------------------- --------------------
Total earning assets 6,201,872 4.23 6,138,530 3.66
Allowance for loan losses (40,941) (44,122)
Other assets 862,798 897,792
---------- ----------
Total assets $7,023,729 $6,992,200
---------- ----------

Liabilities and
Shareholders' Equity
Interest-bearing
deposits $3,160,147 1.29 % $3,134,223 0.80 %
Federal funds and
repurchase agreements 1,064,572 2.38 1,047,743 0.83
Borrowed funds 45,791 4.25 41,717 2.69
-------------------- --------------------
Total interest-
bearing liabilities 4,270,510 1.60 4,223,683 0.82
Noninterest-bearing
demand deposits 1,892,992 1,900,388
Other liabilities 34,022 47,835
Shareholders' equity 826,205 820,294
---------- ----------
Total liabilities and
shareholders' equity $7,023,729 $6,992,200
---------- ----------
Net interest spread 2.63 % 2.84 %
Net interest margin 3.13 3.10



Three Months Ended June 30,
2005 2004
--------------------- ---------------------
Average Average Average Average
Assets Balance Yield/Rate Balance Yield/Rate
--------------------- ---------------------
Loans, net of unearned
interest $3,064,017 5.64 % $2,763,893 4.76 %
Securities:
Taxable 2,130,661 2.81 2,241,799 2.47
Tax-exempt 617,022 4.60 611,002 4.70
-------------------- --------------------
Total securities 2,747,683 3.21 2,852,801 2.95
Federal funds and resell
agreements 171,470 3.18 258,664 1.19
Other earning assets 72,560 3.61 67,517 2.88
-------------------- --------------------
Total earning assets 6,055,730 4.44 5,942,875 3.71
Allowance for loan losses (40,403) (44,327)
Other assets 873,155 921,336
---------- ----------
Total assets $6,888,482 $6,819,884
---------- ----------

Liabilities and
Shareholders' Equity
Interest-bearing
deposits $3,094,391 1.36 % $3,045,291 0.79 %
Federal funds and
repurchase agreements 964,728 2.64 947,416 0.84
Borrowed funds 55,829 4.46 38,780 2.75
-------------------- --------------------
Total interest-
bearing liabilities 4,114,948 1.70 4,031,487 0.82
Noninterest-bearing
demand deposits 1,906,168 1,915,510
Other liabilities 38,744 54,699
Shareholders' equity 828,622 818,188
---------- ----------
Total liabilities and
shareholders' equity $6,888,482 $6,819,884
---------- ----------
Net interest spread 2.74 % 2.89 %
Net interest margin 3.29 3.16

UMB Financial Corporation
SECOND QUARTER 2005
FINANCIAL HIGHLIGHTS
------------------------------------------
(all dollars in thousands, except per share data)
(unaudited)

Six Months Ended June 30 2005 2004
--------------------------- ----------- -----------
Net interest income $ 91,634 $ 89,220
Provision for loan losses 1,500 3,533
Noninterest income 126,008 114,348
Noninterest expense 181,226 175,465
Income before income taxes 34,916 24,570
Net income 25,192 19,172
Net income per share - Basic 1.17 0.88
Net income per share - Diluted 1.16 0.88
Return on average assets 0.72 % 0.55 %
Return on average equity 6.15 % 4.70 %

Three Months Ended June 30
--------------------------
Net interest income $ 47,207 $ 44,141
Provision for loan losses 750 1,731
Noninterest income 62,448 55,737
Noninterest expense 89,901 87,514
Income before income taxes 19,004 10,633
Net income 13,613 8,414
Net income per share - Basic 0.63 0.39
Net income per share - Diluted 0.63 0.39
Return on average assets 0.79 % 0.50 %
Return on average equity 6.59 % 4.14 %

At June 30
---------------------------
Assets $ 6,979,652 $ 6,932,901
Loans, net of unearned interest 3,194,774 2,848,092
Securities 2,734,881 2,728,806
Deposits 5,065,698 5,012,805
Shareholders' equity 826,958 805,965
Book value per share 38.36 37.18
Equity to assets 11.85 % 11.63 %
Allowance for loan losses $ 39,756 $ 44,744
As a % of loans 1.24 % 1.57 %
Nonaccrual and restructured loans $ 7,146 $ 14,847
As a % of loans 0.22 % 0.52 %
Loans over 90 days past due $ 5,945 $ 3,748
As a % of loans 0.19 % 0.13 %
Other real estate owned $ 35 $ -

Common shares outstanding 21,558,646 21,676,848

Average Balances
Six Months Ended June 30
---------------------------
Assets $ 7,023,729 $ 6,992,200
Loans, net of unearned interest 2,964,944 2,730,978
Securities
Deposits 5,053,139 5,034,611
Shareholders' equity 826,205 820,294

UMB Financial Corporation
Selected Financial Data of Affiliate Banks
----------------------------------------------------------------------
(all dollars in thousands) June 30, 2005
(unaudited)
Loans
Net of
Total Unearned Total Shareholder's
Missouri Assets Interest Deposits Equity
----------------------------------------------------------------------
UMB Bank, n.a. $5,926,093 $2,710,211 $4,406,477 $ 555,348
UMB Bank Warsaw, N.A. 79,122 26,881 55,401 5,559

Colorado
----------------------------------------------------------------------
UMB Bank Colorado, n.a. 449,012 276,084 307,175 32,809

Kansas
----------------------------------------------------------------------
UMB National Bank of
America 535,322 172,158 410,986 71,643


Banking - Related Subsidiaries
--------------------------------------
UMB Community Development Corporation
UMB Banc Leasing Corp.
UMB Scout Brokerage Services, Inc.
UMB Scout Insurance Services, Inc.
UMB Capital Corporation
United Missouri Insurance Company
UMB Trust Company of South Dakota
Scout Investment Advisors, Inc.
UMB Fund Services, Inc.
UMB Consulting Services, Inc.
UMB Bank and Trust, n.a.