2007 ANNUAL REPORT · located in the Stapleton redevelopment project—a vital and growing urban...

2007 ANNUAL REPORT

Of course, it takes a great deal more than just time. Today’s business climate is nothing like that of even five years ago, let alone 95 years ago. Our continued success is built upon sound financial principles, and a long-standing tradition of integrity.

Despite all the changes, we continue to produce results because of our relentless commitment to principles that endure. These principles have successfully guided us throughout our history, and will continue to have value for generations to come.

BUILDING A COMPANY TO WITHSTAND THE TEST OF T IME

TAKES EXTRAORDINARY AMOUNTS OF T IME.

– TIMELESS –

2 0 0 7 U M B F I N A N C I A L C O R P O R AT I O N F I N A N C I A L H I G H L I G H T S

179

217

233

188

NET INTEREST INCOMEMillions of Dollars

NONINTEREST INCOMEMillions of Dollars

NET INCOMEMillions of Dollars

04 05 06 07

228

255

289

252

04 05 06 07

42.8

59.8

74.2

56.3

04 05 06 07

1

experienceWe focus on what’s ahead because we know how fast the world moves. We understand how much our customers depend on us to help guide them to their financial goals. We embrace new technologies, services and products that our customers desire and need.

Our roots keep us grounded with a consistent approach to customer service, adherence to sound credit and lending philosophies and a legacy of integrity. Our 95 years of experience have provided unrivaled expertise.

WE’LL NEVER FORGET WHERE WE’VE BEEN,

BUT WE’LL ALWAYS BE MORE INTERESTED

IN WHERE WE’RE GOING.

– TIMELESS –

95 years34,698 days49,965,120 minutes

and counting

33

A D V I S E

A D V O C AT E

YO U

I N N O V AT E

S U R P R I S E

3,391A S S O C I AT E S

DEDICATED TO

commitmentListening … it’s the key component to developing relationships with our customers and prospects. We look for ways to fulfill our brand promise, to show people how they can Count on more® from us—whether it’s helping a customer obtain directions to their next destination or recommending the best option for an investment.

Each interaction is an opportunity to get to know you better. That’s how we learn about you. We are 3,391 people collaborating on your needs—small enough to understand you, big enough to do it all.

SURE ‘TIME IS MONEY,’ BUT TO DO

OUR JOBS WELL WE INSIST ON INVESTING

OUR TIME TO REALLY GET TO KNOW YOU.

– TIMELESS –

5

Correspondent Banking

Merchant Services

Public Finance

Commercial Card

Foreign Exchange

Treasury Management

Institutional Fixed Income

Small Business Banking

Online Banking

Consumer Banking

Mortgage

Consumer LendingInvestment Banking

Marketing and Distribution

Mutual Fund Custody*

Alternative Investments

Investor Services and Transfer Agency

Cash Management*

YOU

+17.2% Growth In Credit Card Balances

+16.4% Growth In Scout Mutual Fund* Assets Under Management

Credit and Debit Cards

Institutional Investment Management

UMB FUND SERVICES

CONSUMER SERVICES

PAYMENT & TECHNOLOGY SOLUTIONS

BANKING SERVICES

Capital MarketsLetters of Credit

COMMERCIAL BANKING & LENDING

+83.4% Growth In Health Savings Accounts and Flexible Spending Accounts

+13.1% Growth In Commercial and Industrial Loans

Healthcare Services

Commercial Lending

Administration and Fund Accounting

Personal Trust / Custody Services

Corporate Trust / Escrow Services

Private BankingPersonal Investment

and Wealth Management

ASSET MANAGEMENT

Brokerage*

Individual Retirement Accounts

Insurance*

Mutual Funds*

*See pages 34 and 35 for additional disclosure information.

solutionsWe have the knowledge, experience and solutions that surround your needs. Whether you’re a customer visiting one of our 135 banking centers in seven states, a Private Banking client or a Financial Services customer managing your investments—UMB associates work to provide what’s right for YOU.

There’s nothing worse than a banker with an off-the-rack solution. It’s our commitment to be your partner, and that means going the distance. That’s what our brand promise, Count on more, means. For us, the extra mile is standard operating procedure.

+17.2% Growth In Credit Card Balances

PROVIDING QUALITY RESOURCES

REQUIRES UNCOMMON PATIENCE, SAVVY

PLANNING AND AN UNRELENTING PERSISTENCE.

– TIMELESS –

7

unparalleledSimply put, we attract, hire, retain and develop the very best people. That’s a commitment UMB has to our associates, shareholders, customers and communities. Our associates are as distinct as the products and solutions we offer to fit our customers’ needs.

Developing life-long customer relationships requires dedication to providing the unparalleled customer experience not only to our customers, but also to our fellow associates.

IN THE SIMPLEST OF TERMS,

THE SUCCESS WE ENJOY STEMS FROM

THE QUALITY OF OUR PEOPLE.

– TIMELESS –

unparalleled

Noninterest Income as a % of Total Revenue*

56.0%

54.0%

55.4%

57.2%

04 05 06 07

Total Assets Under Management**

Billions of Dollars

7.4

10.1

11.0

8.2

04 05 06 07

Health Savings Accounts & Flexible Spending Accounts

Number of HSA & FSA Accounts

8,100

433,165

794,435

24,600

04 05 06 07

HSA & FSA Deposit and Mutual Fund Assets

Millions of Dollars

12

66

101

28

04 05 06 07

Automated Clearing House (ACH) Volume

Billions of Dollars

112

123

131

117

04 05 06 07

**Personal, Institutional and UMB Scout Funds. Excluding assets under management from

employee benefit accounts.

*Net Interest Plus Noninterest Income

9

consistencyWe’re quite proud of our performance, and we always take time to celebrate our successes. That’s important in our culture. Long-term growth is the real prize—and that is where we keep our sights focused. That’s why our balance sheet doesn’t look like most of our competitors’, and we like it that way.

We have a high-quality and low-risk balance sheet, which gives us plenty of room to grow. Our deposit mix provides us with an enviable source of core deposits, and we have enhanced our loan mix without compromising our commitment to high-quality lending. We may be quiet, but our balance sheet speaks volumes.

WHILE WE QUIETLY HAD A RECORD YEAR, WE’VE NEVER BEEN PREOCCUPIED

WITH SHORT-TERM ACHIEVEMENTS.

– TIMELESS –

consistency

$74.2 million

$521.5 million

$288.8 million

RECORD NET INCOME

WE ACHIEVED NEW HEIGHTS IN 2007:

RECORD REVENUE

RECORD NONINTEREST INCOME

11

This summarizes the cumulative return experienced by the company’s shareholders over the years 2003 through 2007, compared to the S&P 500 Stock Index and the S&P Bank Index. In all cases, the return assumes a reinvestment of dividends.

UMBF Total Return Versus S&P 500 and S&P Bank IndexYears ended December 31

S&P 500

UMBF

S&P BANK INDEX

$183

$215

$117

$100

03 04 05 0602 07

$100 $126 $153 $175 $203 $215 UMBF$100 $129 $143 $150 $173 $183 S&P 500$100 $127 $145 $143 $166 $117 S&P Bank Index

independentIn a world of financial service consolidations, a sense of continuity seems to get lost. UMB remains fiercely independent because our size and diversified business mix benefits our customers, our associates and our communities.

We get to know you. We react quickly. And we are patient when necessary. We’ve always run our company for the ages, not the quarter. And that’s been the key to our success for 95 years.

IN A TIME OF MERGERS AND TAKEOVERS,

WE’LL CONTINUE TO BE HERE

STANDING STRONG.

– TIMELESS –

UMBF

13

– TIMELESS –

WE’VE BUILT OUR COMPANY

FOR THE LONG-TERM, NOT THE QUARTER.

We recently opened this “green” banking center in Colorado. It serves as a symbol of an enduring promise to you and our environment. The landscaping and green rooftop utilize native, drought-tolerant plants. The building uses low-voltage lighting, low-flow water fixtures and many other eco-friendly features.

Mariner Kemper Chairman and Chief Executive Officer

Mike Hagedorn Executive Vice President and Chief Financial Officer

Peter J. Genovese Vice Chairman

Peter J. deSilva President and Chief Operating Officer

The Executive Committee are also members of the Management Committee featured on page 26.

The UMB Financial Corporation Executive Committee:

15

Dear Shareholders:

The timepiece on the cover of this year’s Annual Report belonged to my grandfather, R. Crosby Kemper. He joined City Bank as President on March 11, 1919—89 years ago to the day that this year’s Annual Report was printed. City Bank became City National Bank, and he received this watch to recognize his years of service to the company that today has evolved into UMB Financial Corporation. What better representation of “Timeless” can we find than that?

To me, this watch has come to symbolize the time-tested operating principles that have carried us through nearly a century—and as a result, it represents how timeless, how enduring, our company remains. I’m honored to wear it.

As the fourth generation of the Kemper family to lead UMB, I am incredibly humbled by the leadership that came before me to navigate the direction of our company. For 95 years, we have diligently operated this company for the ages, effectively managing through cycles in the economy. And, in an industry that is ever-changing, our continued success remains dependent on three basic standards: never compromising on our quality underwriting standards, supporting a culture of innovation and delivering on our Vision— the unparalleled customer experience.

In today’s climate of economic uncertainty, our unwavering high standards have allowed us to leverage our stability and foresight to the benefit of our customers and our communities. Although at times we have been criticized as being overly cautious, the foundation that was built nearly a century ago has prepared us for times such as these. While others are recovering from reckless expansion, we can look ahead and actively pursue our strategic growth plans.

Those guiding strategies—optimizing our balance sheet, growing fee-based businesses, strengthening our asset management business, leveraging our distribution network and focusing on capital management—are critical to our success. Peter deSilva, our President and Chief Operating Officer, will talk in more detail on page 18 about our accomplishments against each strategy, but staying focused and delivering results is what will help us grow our company and build relationships.

We pursue innovative ways to deepen our customer relationships, attract and retain top talent and embrace social responsibility. It is invigorating to consider how the original goals set forth in preceding generations have guided, and will continue to guide, our evolution.

Our customers want a partner who truly knows, understands and anticipates their needs. In an effort to foster this culture, we created a handbook for our associates to engage activities and attitudes around delivering the unparalleled customer experience. The book’s cover features a die-cut circle, which represents the “empty promise” that other companies make. But seen through that hole are the words “the unparalleled customer experience.” We see our promise clearly and will deliver on it.

– TIMELESS –

DELIVERING the UNPARALLELED

CUSTOMER EXPERIENCE MEANS FINDING

WAYS TO SAY ‘YES.’

We also want customers, associates and communities to understand our commitment to social responsibility. You’ll notice on page 14 that we feature a picture of one of our newest banking centers in Denver. This facility, located in the Stapleton redevelopment project—a vital and growing urban community—is our first “green” banking center. I’m thrilled that we can do our part to help make the world a better place to live, not only for our children, but also for future generations. We are actively examining our company’s processes and practices to uncover energy-saving and efficiency ideas that we can implement to ensure our future is green.

In Kansas City alone, we’ve enhanced our recycling initiatives and created a “green” Intranet resource for all associates that includes a variety of educational events. We also have made a commitment to reduce our carbon footprint by becoming a member of the new Greater Kansas City Climate Protection Partnership. This is a long journey for the company, and one that I believe in personally. We can make a difference in our larger world.

By now you may have realized this isn’t the typical Chief Executive Officer’s letter. I wanted to take this opportunity to talk about my vision for our company and my passion to grow this company, support our associates and serve our communities. I will pause for a moment to thank all of the 3,391 associates who work every day, tirelessly, on behalf of each other and

our customers. They are the best in the business and we couldn’t do it without them. And, to our shareholders, thank you for the confidence you put in the executive management team. It is our honor to guide the company.

In closing, I’d be remiss if I didn’t tell you that 2007 was a record year for your company. But, much like my grandfather’s watch, that success was the culmination of a lot of hard work and focus on executing against our strategies. This is something we don’t take lightly. And, we recognize that it is timeless discipline and focus that made it all happen.

Sincerely,

Mariner KemperChairman & Chief Executive OfficerMarch 11, 2008

2.8

0.22

0.35 1.50

3.6

0.20

0.17 0.17 1.20

3.9

0.21

1.17

3.1

0.25

0.16

1.21

Average Loans Billions of Dollars

Net Charge-Offs as a % of Average Loans

Nonperforming Loans as a % of Total Loans

Allowance for Loan & Lease Losses as a % of Loans

04 05 06 0704 05 06 0704 05 06 0704 05 06 07

17

3

21

Dear Shareholders:

For 95 years, UMB has remained true to our tradition and time-tested approach to quality, liquidity, capital strength and intense customer focus. 2007 was no different and, as a result, the company reported record net income of $74.2 million, up 24.2 percent from 2006 and 31.8 percent from 2005. The continued focused execution against our growth and operational strategies helped achieve these results. Five strategies drive our company and are critical to our ongoing success:

Better optimization of our balance sheet. We continue to make progress in optimizing the mix of our earning assets and liabilities. In 2007, end-of-period loans increased four percent over 2006. This improvement is due to growth in our commercial and industrial, commercial real estate, Home Equity Lines of Credit (HELOC) and credit card portfolios offset by a 26.4 percent or $190.8 million decline in our indirect auto portfolio balances. In August, we ceased the acquisition of new indirect auto loans. We are now allowing the portfolio to naturally run off as part of our strategy to improve earning asset yields. The yield of the indirect portfolio was 4.96 percent for the year compared to a yield of 6.94 percent on our total loan portfolio.

While our indirect auto portfolio runs off, it is our intent to replace it with higher-yielding loans such as commercial and industrial, credit card, small business and HELOCs. In 2007, commercial and industrial loans grew 13.1 percent and credit card balances increased 17.2 percent year-over-year. HELOC loans were up 47.8 percent, and at the end of 2007 exceeded $270 million in total balances, or 6.9 percent of our total loan portfolio.

On the liability side, we continued to maintain a strong and stable deposit base. In 2007, 32 percent of our deposits were noninterest bearing, compared with an industry average of approximately 17 percent.

Grow fee-based businesses. 2007 was a successful year for many of our fee-based businesses. As a result, we achieved double-digit growth of 13.3 percent and record noninterest income of $289 million. In addition to Asset Management, our Bankcard, Healthcare and Mutual Fund Services businesses were key contributors to this growth. A key driver in our card program has been our commercial credit card product. Total commercial cardholder volume increased 22.6 percent in 2007. The growth opportunity continues to be encouraging as our commercial cardholder volume posted a monthly record three different times in 2007.

UMB continued to gain momentum in healthcare services. Account growth of 83.4 percent resulted in more than 794,000 accounts at year end. Total deposits and mutual fund assets were up 53.2 percent for the year and now exceed $100 million. These numbers are indicative of the tremendous growth potential in this business. We continue to see opportunity as many of the newly acquired customers begin to increase their balances and withdraw for their healthcare needs using our multipurpose debit cards.

UMB Fund Services continues to turn in strong growth. Noninterest income for the year increased 15.9 percent over 2006. During the year, we made several key hires to strengthen the leadership team and won several important new client relationships.

Strengthen our asset management business. Total assets under management increased 8.6 percent to $11.0 billion, from $10.1 billion at the end of 2006. Leading this growth is our proprietary family of mutual funds, which continues to play a key role in our strategy. Total assets in the UMB Scout Funds* increased 16.4 percent from $5.0 billion at the end of 2006, to $5.8 billion at the end of 2007.

– TIMELESS –

WE REMAIN FOCUSED ON OUR LONG-TERM

STRATEGIES, BELIEVING THAT SUCCESS

IS MORE ABOUT TOMORROW THAN TODAY.


4

5I am particularly pleased that the funds’ leadership continues to be recognized by the industry. Jim Moffett, lead portfolio manager of the UMB Scout International Fund,* was the runner-up in Morningstar’s 2007 International-Stock Manager of the Year contest for the second time in three years. Capitalizing on our growing reputation for international investing, we launched the UMB Scout International Discovery Fund* last December. This fund, under the leadership of Jim Moffett and Michael Stack, invests in small and mid-sized companies in various countries with the goal of long-term capital appreciation.

Corporate Trust was another key growth driver. Noninterest income for this business increased nearly $2.5 million, or 20 percent over 2006. In the 2007 corporate trust rankings released by Thomson Financial, UMB ranked fourth for the year by number of transactions of overall municipal trusteeships and paying agencies combined. Our 2007 performance is a reflection of our strong reputation for superior customer service.

Leverage our distribution network. Repositioning and increasing utilization of our regional distribution network remains a priority. We continue to reposition our branch network with emphasis in growth markets where we have proven leadership. As of December 31, 2007, we had 135 branches, reflecting three openings and seven closings during the year. We continue to strive for greater penetration and market share throughout our footprint and especially in key markets where our focus is to provide a broad offering of services through our existing branch network.

Focus on capital management. Our priorities in this area remain the same. They are: First, to invest in growth, either through reinvestment in the business or through acquisitions that are a strategic, financial, operational and cultural fit; second, to consider increasing our dividend over time; and third, to repurchase stock when it makes sense to do so. For the year, we repurchased 1.1 million shares at an average price of $39.37 and a total cost of $43.3 million. For 2007, the total dividends paid were $23.2 million, a 6.1 percent increase over 2006, and the payout ratio was 32.0 percent.

In 2008, we will continue to look at several types of acquisitions—from traditional banking acquisitions to opportunities that would complement our existing fee businesses. As always, we’ll be disciplined and prudent in our approach.

In closing, I’d like to thank our associates who made great strides in delivering on the unparalleled customer experience. In these uncertain times, I believe that our value proposition will resonate more loudly than ever. This is truly our time, and we will take advantage of it.

Sincerely,

Peter J. deSilvaPresident & Chief Operating OfficerMarch 11, 2008

61.8

2.46.1

293.2

182.7

5.010.8 440.1

270.2 5.8 13.3 539.4

126.0

3.5

9.0 354.9

04 05 06 0704 05 06 0704 05 06 0704 05 06 07

Home Equity Loans at Year-End

Millions of Dollars

Scout Funds Assets Under Management

Billions of Dollars

Total Corporate Trust Assets Under Administration

Billions of Dollars

Commercial Cardholder Volume

Millions of Dollars

19

– TIMELESS –

THE STRENGTH OF OUR BALANCE SHEET

SPEAKS VOLUMES.

Dear Shareholders:

For UMB Financial Corporation, 2007 was a year of solid financial improvement driven by safety and soundness at our core. These results reflect a disciplined execution against the growth strategies outlined in Peter’s letter, while adhering to our core philosophies and risk profile described in Mariner’s letter.

In 2007, we reported record net income of $74.2 million, or $1.77 per diluted share, up 26.4 percent from $1.40 reported in 2006. We also posted record revenue of $521.5 million, up 10.4 percent from 2006. These results were driven by noninterest income and net interest income growth of 13.3 percent and 7.1 percent, respectively.

The noninterest income improvement was primarily due to increased UMB Scout Funds* assets under management, corporate trust fees and higher deposit service charges, as well as a $7.2 million pre-tax net gain recognized on the sale of the securities transfer product, which was completed during the third quarter.

Net interest income increased due in large part to higher average earning assets and higher net interest margin. Net interest margin was 3.44 percent in 2007, compared to 3.38 percent in 2006. The margin improvement partly reflects the progress we achieved through our balance sheet optimization strategy, which has helped us expand our earning-asset yield and manage the cost of our interest-bearing liabilities. The higher earning assets were mostly the result of solid loan growth, which continues to drive our success, with average loans up 9.0 percent from 2006.

Higher revenue was offset by a noninterest expense increase of 6.8 percent, due primarily to an increase in salaries and benefits, as well as a pre-tax liability accrual of $4.6 million related to the company’s estimated share of Visa Inc.’s covered litigation provision. While we are pleased with the operating leverage we’ve been able to achieve by executing on our growth strategies, we recognize there are still opportunities and remain focused on improving our cost structure.

The earnings improvement we experienced in 2007 has continued to strengthen our balance sheet. The challenging conditions the industry faced in 2007 validated our time-tested model and tradition of quality, liquidity, and safety and soundness. This model is based on a high-quality and low-risk balance sheet, which gives us plenty of room to grow and is unique in many ways.

Our deposit composition, with almost one-third in noninterest-bearing demand deposits, provides us with an enviable source of core deposits. Further contributing to our strong balance sheet is our loan portfolio. Our loan mix has a solid Commercial and Industrial component at 45.0 percent of total loans. In addition, we enjoy the benefits of a diverse consumer loan base, including our credit card and HELOC portfolios. Our low balance sheet leverage, with a relatively low loan-to-deposit ratio, allows us to grow loans at a healthy pace. Most importantly, we are proud of achieving solid loan growth while never wavering from our historically strong underwriting standards.


32.1%

20.3%

2.1% 0.5%

45.0%

32.0%

22.8%

45.2%

All of the above characteristics, together with the earnings improvement we experienced in 2007, translated into robust capital ratios. Tier 1 Leverage, Tier 1 Risk-based and Total Risk-based ratios ended the year at 9.6 percent, 13.7 percent and 14.6 percent, respectively. These ratios are stronger than the majority of our peers and significantly above regulatory levels.

Our capital strength has benefited us during challenging times in the financial markets. Indeed, a recent Wall Street Journal headline read, “Liquidity is Priceless.” All of us at UMB share that belief and remain committed to growing the intrinsic value of our company over the long-term, not just for the next quarter.

Sincerely,

Michael HagedornExecutive Vice President & Chief Financial OfficerMarch 11, 2008

Risk-Based Capital Ratios Net-Interest Margin

04 05 06 07

4% 4%

8%

3.10

13.74% 3.38

14.58% 3.44

9.63%

3.16

Regulatory Minimum UMB

Tier 1 Leverage

Tier 1 Risk-based

TotalRisk-based

Deposit CompositionAs of December 31, 2007

Interest-Bearing Demand and Savings Deposits

Noninterest-Bearing Demand Deposits

Time Deposits

Loan CompositionAs of December 31, 2007

Commercial / Financial /Agricultural

Real Estate

Consumer

Real Estate—Construction

Leases & Other

21

– FINANCIAL HIGHLIGHTS –

55.9%

65.2%

68.3%

61.0%

Loan-To-Deposit RatioAverage

Dividend Payout Ratio

Loan-To-Earning AssetsAverage

Return On Average Assets

04 05 06 07

45.6%

53.0%

54.9%

49.9%

04 05 06 07

.62%

.93%

.79% .79%

04 05 06 07

43.4%

37.1%

32.0%

35.1%

04 05 06 07

Diluted Earnings Per ShareDollars

0.99

1.40

1.77

1.30

04 05 06 07

Return On Average Equity

5.21%

7.09%

8.49%

6.79%

04 05 06 07

In Thousands Except Per Share Data

– FIVE-YEAR SUMMARY –

Earnings 2007 2006 2005 2004 2003

Interest income $ 414,413 $ 369,083 $ 271,911 $ 219,454 $ 235,863 Interest expense 181,729 151,859 83,621 40,350 42,684 Net interest income 232,684 217,224 188,290 179,104 193,179

Provision for loan losses 9,333 8,734 5,775 5,370 12,005 Noninterest income 288,788 254,945 251,873 228,103 245,919 Noninterest expense 407,164 381,417 358,069 350,102 351,106 Net income 74,213 59,767 56,318 42,839 58,879

Average Balances

Assets 7,996,286 7,583,217 7,094,319 6,927,929 7,150,135 Loans, net of unearned interest 3,901,853 3,579,665 3,130,813 2,781,084 2,588,794 Securities 2,846,620 2,797,114 2,918,445 3,033,732 3,556,388 Deposits 5,716,202 5,488,798 5,135,968 4,976,037 5,280,203 Long-term debt 36,905 37,570 34,820 17,579 17,384 Shareholders' equity 874,078 843,097 829,412 821,556 808,472

Year-End Balances

Assets 9,342,959 8,917,765 8,247,789 7,805,006 7,749,419 Loans, net of unearned interest 3,929,365 3,767,565 3,393,404 2,869,224 2,722,292 Securities 3,486,780 3,363,453 3,463,817 3,825,765 3,784,297 Deposits 6,550,802 6,308,964 5,920,822 5,388,238 5,636,125 Long-term debt 36,032 38,020 38,471 21,051 16,280 Shareholders' equity 890,574 848,875 833,463 819,182 811,923 Nonperforming loans 6,581 6,563 5,439 10,050 12,796 Allowance for loan losses 45,986 44,926 40,825 42,723 47,494

Per Share Data

Earnings—basic $ 1.78 $ 1.40 $ 1.31 $ 0.99 $ 1.35 Earnings—diluted 1.77 1.40 1.30 0.99 1.35 Cash Dividends 0.57 0.52 0.46 0.43 0.41 Dividend payout ratio 32.02 % 37.14 % 34.73 % 43.43 % 30.37 Book Value $ 21.55 $ 20.08 $ 19.39 $ 18.93 $ 18.72 Market price High 47.06 38.04 34.25 29.45 25.75 Low 34.95 31.80 26.45 23.23 18.13 Close 38.36 36.51 31.96 28.33 23.77

Ratios

Return on average assets 0.93 % 0.79 % 0.79 % 0.62 % 0.82 Return on average equity 8.49 7.09 6.79 5.21 7.28 As a % of loans: Allowance for loan losses 1.17 1.20 1.21 1.50 1.73 Nonperforming loans 0.17 0.17 0.16 0.35 0.47 Risk-based capital: Tier 1 13.74 13.81 16.14 18.20 19.13 Total 14.58 14.65 16.99 19.20 20.25 Equity to Assets 9.53 9.52 10.11 10.50 10.48

%

%

23

– CONSOLIDATED BALANCE SHEETS –

In Thousands Except Share Data December 31,

Assets 2007 2006

Loans $ 3,917,125 $ 3,753,445 Allowance for loan losses (45,986) (44,926)

Net Loans 3,871,139 3,708,519

Loans held for sale 12,240 14,120 Investment securities: Available for sale 3,385,952 3,238,648 Held to maturity (market value of $37,658 and $44,819, respectively) 37,658 44,781 Federal Reserve Bank stock and other 19,287 15,490 Trading securities 43,883 64,534

Total investment securities 3,486,780 3,363,453

Federal funds sold and securities purchased under agreements to resell 712,012 848,922 Cash and due from banks 806,600 531,188 Bank premises and equipment, net 235,528 243,216 Accrued income 62,021 57,313 Goodwill 94,512 93,723 Other intangibles 16,463 19,309 Other assets 45,664 38,002

Total assets $ 9,342,959 $ 8,917,765

Liabilities

Deposits: Noninterest-bearing demand $ 2,094,422 $ 2,293,096 Interest-bearing demand and savings 2,959,109 2,644,125 Time deposits under $100,000 852,837 799,003 Time deposits of $100,000 or more 644,434 572,740

Total deposits 6,550,802 6,308,964

Federal funds purchased and repurchase agreements 1,734,749 1,620,945 Short-term debt 33,753 17,881 Long-term debt 36,032 38,020 Accrued expenses and taxes 76,362 52,381 Other liabilities 20,687 30,699

Total liabilities 8,452,385 8,068,890

Shareholders’ Equity

Common stock, $1.00 par value; authorized 80,000,000 shares, 55,056,730 issued and 41,327,624 and 42,266,041 outstanding, respectively. 55,057 55,057Capital surplus 702,914 699,794 Retained earnings 430,824 380,464 Accumulated other comprehensive loss 12,246 (17,259)

Treasury stock, 13,729,106 and 12,790,689 shares, at cost, respectively (310,467) (269,181)

Total shareholders’ equity 890,574 848,875

Total liabilities and shareholders’ equity $ 9,342,959 $ 8,917,765

Please refer to 10-K filing for additional information.

– CONSOLIDATED STATEMENTS OF INCOME –

Year Ended December 31,In Thousands, Except Share And Per Share Data

Interest Income 2007 2006 2005

Loans $ 270,638 $ 238,356 $ 176,842 Securities: Securities available for sale—Taxable interest 97,575 85,575 64,784 Securities available for sale—Tax-exempt interest 24,378 21,213 14,622 Securities held to maturity—Taxable interest 1 10 23 Securities held to maturity—Tax-exempt interest 891 2,235 5,374

Total securities income 122,845 109,033 84,803

Federal funds and resell agreements 18,659 19,112 7,980 Trading securities and other 2,271 2,582 2,286

Total interest income 414,413 369,083 271,911

Interest Expense

Deposits 120,217 96,889 52,099 Federal funds and repurchase agreements 59,250 52,832 29,371 Short-term debt 591 619 418 Long-term debt 1,671 1,519 1,733

Total interest expense 181,729 151,859 83,621

Net interest income 232,684 217,224 188,290 Provision for loan losses 9,333 8,734 5,775

Net interest income after provision for loan losses 223,351 208,490 182,515

Noninterest Income

Trust and securities processing 115,585 98,250 82,430 Trading and investment banking 19,288 18,192 17,787 Service charges on deposits 79,880 73,598 79,420 Insurance fees and commissions 3,418 3,956 3,326 Brokerage fees 8,023 6,228 5,933 Bankcard fees 39,972 38,759 33,362 (Losses) gains on sales of assets and deposits, net (597) 793 9,237 Gain on sale of employee benefit accounts - - 3,600 Gain on sale of securities transfer 7,218 - - Gains (losses) on sales of securities available for sale 1,010 117 (225)Other 14,991 15,052 17,003

Total noninterest income 288,788 254,945 251,873

Noninterest Expense

Salaries and employee benefits 206,883 193,980 190,197 Occupancy, net 30,255 27,776 26,468 Equipment 52,711 48,968 44,031 Supplies and services 23,435 22,805 21,808 Marketing and business development 15,443 14,835 13,309 Processing fees 29,861 28,292 23,594 Legal and consulting 8,451 8,175 8,577 Bankcard 11,064 13,831 11,608 Amortization of other intangibles 2,943 1,600 740 Covered litigation provision 4,628 - - Other 21,490 21,155 17,737

Total noninterest expense 407,164 381,417 358,069

Income before income taxes 104,975 82,018 76,319 Income tax expense 30,762 22,251 20,001

NET INCOME $ 74,213 $ 59,767 $ 56,318

Per Share Data

Net income—Basic $ 1.78 $ 1.40 $ 1.31 Net income—Diluted 1.77 1.40 1.30 Weighted average shares outstanding 41,712,223 42,592,960 43,109,536

Please refer to 10-K filing for additional information.

25

Brad Smith Executive Vice President

Consumer Services

Doug Page Executive Vice President

Chief Lending Officer

Royce Hammons Chairman and CEO Oklahoma Region

Craig AndersonChairman and CEO West Central Region Chairman and CEO

Kansas Region

Jon RobinsonPresident

UMB Bank Colorado, n.a.

Terry D’Amore Executive Vice President

Payment & Technology Solutions

Jim Sangster Executive Vice President

President, UMB Bank, n.a.

Heather Miller Executive Vice President

Marketing Communication

Larry SmithExecutive Vice President

Chief Organizational Effectiveness Officer

Dennis Rilinger Executive Vice President

General Counsel

Daryl HuntExecutive Vice President

Financial Services and Support

Dan GomezPresident and CEO Nebraska Region

Steve HamiltonChairman and CEO

Northwest Missouri Region

Mark PetersonChief Executive Officer UMB Bank Arizona, n.a.

David KlingExecutive Vice President

Enterprise Services

Gil TroutChairman and CEO

South Central Missouri Region

Clyde WendelExecutive Vice President

UMB Bank, n.a. President, Asset Management

John ZaderChief Executive Officer

UMB Fund Services

– UMB FINANCIAL CORPORATION MANAGEMENT COMMITTEE –

UMB Financial Corporation

Theodore M. Armstrong•

Retired

Paul D. Bartlett, Jr.°Chairman of the BoardBartlett and Company

Thomas E. Beal°PresidentBeal Properties, Inc.

David R. Bradley, Jr. ˆPresident, Publisher and EditorNews-Press and Gazette Company

Peter J. deSilva*Chairman and CEO UMB Bank, n.a.President and COOUMB Financial Corporation

Terrance P. DunnˆPresident and CEOJ.E. Dunn Construction Company

K.C. Gallagher•

President and CEOGallagher Industries, LP

Peter J. Genovese*°Vice ChairmanUMB Financial CorporationCEO – St. Louis RegionUMB Bank, n.a.

Gregory M. Graves†

President and CEOBurns and McDonnellEngineering Company, Inc.

Michael D. Hagedorn*°Executive Vice President and CFOUMB Financial Corporation

Richard HarveyRetired ChairmanWilliam H. Harvey Company

Alexander C. KemperChairman of the BoardThe Collectors Fund

Mariner Kemper*Chairman and CEOUMB Financial CorporationChairman and CEOUMB Bank Colorado, n.a.

R. Crosby Kemper°Chairman EmeritusUMB Financial Corporation

John H. Mize, Jr.•

Chairman, President and CEOBlish-Mize Company

Robert W. Plaster°Chairman of the BoardEvergreen Investments, LLC

Kris A. Robbins•

Chairman of the Board, CEO and PresidentSecurity Benefit

Thomas D. Sanders†

Consultant to Senior ManagementMMC Corporation

L. Joshua SoslandVice PresidentSosland Companies, Inc.

Paul Uhlmann III ˆPresidentThe Uhlmann Company

Dr. Jon M. Wefald†

PresidentKansas State University

J. Lyle Wells, Jr.°Consultant

Thomas J. Wood III ˆGeneral PartnerWood Family Partnerships

UMB Bank, n.a.

Don R. Armacost, Jr.President and CEOPeterson Manufacturing Company

J. Fred BallChairman and CEOBall’s Price Chopperand Hen House Markets

William E. Clarkson, Jr.PresidentSuperior Asphalt CompanyVice PresidentClarkson Construction Company

Peter J. deSilvaChairman and CEO UMB Bank, n.a.President and COOUMB Financial Corporation

Peter J. Genovese°Vice ChairmanUMB Financial CorporationCEO – St. Louis RegionUMB Bank, n.a.

Jeffrey B. HanesInvestor

Marilyn B. HebenstreitChairmanLinda Hall Library

Richard F. JonesPresident and CEOFidelity Security Life Insurance Co.


Mariner KemperChairman and CEOUMB Financial CorporationChairman and CEOUMB Bank Colorado, n.a.


Greg S. MadayCEOSpecChem, LLC

Patrick J. McCownCEOMcCown Gordon Construction

Timothy R. MurphyPresident and CEOMurphy-Hoffman Company

H. Tyler NottbergCEOUS Engineering

Douglas F. Page°Executive Vice PresidentUMB Bank, n.a.Executive Vice PresidentUMB Financial Corporation

Gary PhillipsPresident and CEOAssociated Wholesale Grocers, Inc.

Dave G. Ruf°Retired

James A. SangsterPresidentUMB Bank, n.a.Executive Vice PresidentUMB Financial Corporation

Richard P. SmithPresident and CEODairy Farmers of America, Inc.

H. Stephen Talge°PresidentDazey Corporation

William D. WagnerWagner Investments LP

E. Jack Webster, Jr.Chairman of the BoardPetrol Properties, Inc.

J. Lyle Wells, Jr.°ConsultantUMB Financial Corporation

Clyde F. WendelPresident Asset ManagementVice ChairmanUMB Bank, n.a.

UMB Bank Arizona, n.a.

Frank Phillips Giltner IIICFOShamrock Foods Company

Brian M. GoodwinManaging DirectorShughart Thomson & Kilroy

Scott D. HarrCFOUMB Bank Arizona, n.a.


Mark PetersonCEOUMB Bank Arizona, n.a.

Richard TruebloodFinancial Consultant

UMB Bank Colorado, n.a.

Marilyn Alkire

Buck BlessingCEOGriffis/Blessing, Inc.

Dwight A. BrinkmanFormer President and CEOU.S. Engineering Company

David Butlerof CounselHolland and Hart

Laurence B. CohenInvestor

K.C. GallagherPresident and CEOGallagher Industries, LP

Philip H. GoedertPresidentTangents Design Management

Steve HamlinePresident – Rocky Mountain RegionJ.E. Dunn Construction Company

Robert G. JasterFormer President and CEORobinson Brick Company



Steve LocktonExecutive Vice PresidentLockton Companies

Peter J. NeideckerManaging MemberMountainside Medical, LLC

The Honorable Ray Powers°Former State SenatorColorado State Senate

Michael L. RaischControllerGHP

Jon M. RobinsonPresidentUMB Bank Colorado, n.a.

David TaylorPresidentVelcon Filters, Inc.

R. Thayer Tutt, Jr.President and CIOEl Pomar Foundation

Ned C. VothPresidentJordan’s Building Center

° Advisory Director * Executive Committee ˆ Governance Committee † Compensation Committee • Audit Committee

– BOARD OF DIRECTORS –

27

UMB National Bank of America

Craig L. AndersonChairman and CEOUMB National Bank of America

Wayne F. BassoCommunity Bank PresidentTopeka Banking CenterUMB Bank, n.a.

Philip BrokenickyPresident and CEONew Horizons RV Corporation

Ross DoyenFarmer and Cattleman

Leon L. DunnLivestock and Grain Producer

Stewart R. EtheringtonOwnerEtherington and Company Realtors

Robert W. Exline, Jr.PresidentExline, Inc.

Gregg K. FischerCommunity Bank PresidentHudson Banking CenterUMB National Bank of America

Terry D. HartsCommunity Bank PresidentManhattan Banking CenterUMB National Bank of America

C.N. Hoffman IIIRetiredFarmer and Rancher

William C. HoffmanInvestor

Robert K. LarsenRetired

John A. O’LearyCommunity Bank PresidentRussell Banking CenterUMB National Bank of America

Clark RenfroCommunity Bank PresidentSalina Banking CenterUMB National Bank of America

Richard A. RenfroVice Chairman of the BoardUMB National Bank of America

Daryl D. RoneyCommunity Bank PresidentAbilene Banking CenterUMB National Bank of America


Denise SteinSenior Vice PresidentWest Central Region CFOUMB National Bank of America

Kenneth L. StielowPresidentBar S Ranch, Inc.

John K. Vanier IIVice PresidentWestern Star Ag Resources, Inc.

William G. WatsonPresidentUMB National Bank of America

J. Lyle Wells, Jr.Consultant

Lee YoungPresident and CEOSalina Vortex Corporation

UMB Advisory Boards

Eastern Missouri Division

Northeast Region

Charles BindemannPresidentAccu-Therm, Inc.

Guy E. CallisonOwner and ManagerSwine Assurance Productions, Inc.

Kenneth A. CarrollOwnerCarroll Seed Farms

J. Cecil FisherFarmer, Semi-Retired

Robert L. Hawkins, Jr.Retired

Howard F. Kizer, Jr.Retired

Marlin McCormickGeneral ManagerFarmers Elevator and Exchange

Weldon D. ParisPresidentPete Paris Chevrolet, Inc.

Bob D. Swartz, DDS

St. Louis, Missouri (City)

Terry K. AndersonRetired

Theodore M. ArmstrongRetired

Warner BaxterExecutive Vice President and CFOAmeren Corporation

Vincent J. BommaritoCEOTony’s Restaurants, Inc.

Louis G. ChiodiniPresidentChiodini Associates

W. Thomas ChulickPresidentInvestment & Wealth ManagementUMB Bank, n.a.

D. Beatty D’AllessandroSenior Vice President and CFOGraybar Electric Company, Inc.

Richard G. EngelsmannChairmanBeltservice Corporation

Thomas F. FeldmannPresident and CEOLionmark Construction Companies

Peter J. GenoveseVice ChairmanUMB Financial CorporationCEO – St. Louis RegionUMB Bank, n.a.

Ralph E. HoffmanCEOTSI Graphics, Inc.

Roger D. JosephRetiredKellwood Company

Todd J. KortePresident and CEOThe Korte Company

J. Michael MedartPresident and CEOMedart, Inc.

David H. NaunheimExecutive Vice PresidentPresident of Commercial BankingEastern RegionUMB Bank, n.a.

Scott NegwerPresidentNegwer Materials, Inc.

St. Louis, Missouri (County)

Vincent P. BommaritoExecutive ChefTony’s Restaurants, Inc.

Clayton BrownPresident and COOThe International Group

Amy Cole BuehlerExecutive DirectorAnimal Protective Associationof Missouri


Michael J. DrellerVice President/ControllerXtra Corporation

Peter J. GenoveseVice ChairmanUMB Financial CorporationCEO – St. Louis RegionUMB Bank, n.a

John M. GuntherVice PresidentGunther Salt Company

Kent R. HigginbothamPresidentHigginbotham Brothers, Inc.

John J. Inkley, Jr.PartnerArmstrong Teasdale LLP

Patrick T. KellyPresidentPat Kelly Equipment Company

Gregory W. KleffnerSenior Vice President and CFOKellwood Company

Chris T. KoenemannExecutive Vice President Lockton Companies of St. Louis, Inc.

Paul S. Mace, DDSPresidentPaul S. Mace, DDS

Bart J. MargiottaPresidentPriority Properties

June McAllister-FowlerVice PresidentCorporate and Public CommunicationsBJC HealthCare

Timothy M. MurchPresidentMitch Murch MaintenanceManagement Company

Patrick L. MurphyRetired


Anthony F. PiazzaPresidentRSI Kitchen and Bath

Stephen E. RicciPresidentRicci Associates, Inc.

Wendy SullivanPresidentLife Skills Foundation

Robert D. ViethExecutive Vice PresidentUMB Bank, n.a.

Charles F. Voelkel IIVice President and SecretarySemco Plastic Company

Michael E. ZilmVice President of OperationsSt. John’s Mercy Hospital

Illinois

P. Douglas BechererPresidentDrs. Becherer, Becherer andAssociates, Ltd.

Pamela BurnhamPresidentVon Alst Operating, LLC


Larry EckertPresidentBethel-Eckert Enterprises, Inc.

– BOARD OF DIRECTORS AND ADVISORY BOARDS –



Maurice E. NetemeyerPresidentAviston Lumber Company

Thomas H. Renner, Jr.OwnerShiloh Valley Equipment Company

Donald P. RigneyVice PresidentEmpire Comfort Systems

Ronald G. SkaggsCommunity Bank PresidentUMB Bank, n.a.

St. Charles, Missouri

Charles C. BlossomExecutive DirectorBoone Center, Inc.


Julia M. EcksteinDirector of State OperationsCenter for Health Transformation


William J. GreenOwnerSCI Engineering, Inc.

Charles R. GrossDirector of AdministrationSt. Charles County Government

Kent E. HeintzSenior Vice PresidentCommercial BankingUMB Bank, n.a.


Maurice D. NewberryExecutive Vice President and COOThe Newberry Group, Inc.

Harlan PalsChairman PrincipalPals Group

Randall L. SchillingPresident and CEOQuilogy

David E. SkilesSenior Vice PresidentUMB Bank, n.a.

KC Metropolitan Division

Johnson County, Kansas

Rick S. BennettSenior Vice PresidentIndirect LendingUMB Bank, n.a.

Mark J. HenkeMcCarthy & Henke Advisory, Inc.

Justin HillPresidentThe Lawrence Paper Company

R. Crosby KemperChairman EmeritusUMB Financial Corporation

Thomas Patrick KleinPresidentAndy Klein Pontiac-GMC

Leo J. NunninkCommunity Bank PresidentUMB Bank, n.a.

Richard S. O’NeillChairman of the BoardO’Neill Automotive, Inc.

Richard S. O’Neill, Jr.PresidentO’Neill Automotive, Inc.

Ron PeteringPresidentShafer, Kline & Warren, Inc.

James D. RineRegional President Community BankingUMB Bank, n.a.


Dave ScheerPresident and CEOInland Truck Parts

Frank L. ThompsonPresidentOverland Park Jeep, Inc.

David E. WillsonPresidentCamp David, Inc.

Lawrence, Kansas

Charles A. BeckerRetiredExecutive Vice PresidentCampbell-Becker

Marilyn BittenbenderCommercial AdvisorGrubb & EllisThe Winbury Group

Bradley R. JohnsonCommunity Bank PresidentUMB Bank, n.a.


Miles E. SchnaerPresident and OwnerCrown Chevrolet and Toyota

Metro

Kevin S. AndersonPresidentAnderson Metals Corporation, Inc.

Don E. Axtell, Jr.PresidentLexington Plumbing andHeating Company

David F. BallPresident and COOBall’s Price Chopper andHen House Markets

R. Philip BixbyPresident and CEOKansas City Life Insurance Co.


William J. FrenchVice ChancellorUniversity of Missouri-Kansas City

Jon J. HendersonCommunity Bank PresidentUMB Bank, n.a.

Brian M. HutchinCommunity Bank PresidentUMB Bank, n.a.




Jonathan LambertPresidentPacific Mutual Door Company

Greg S. MadayCEOSpecChem, LLC


George W. Ryan, Jr.Investor

Ryck D. SandersPresidentMidwest Mechanical Services


Richard H. SpencerRetired PartnerSpencer, Fane, Britt and Browne

J. Hal Surface IIIJ.H.S. Associates

Marc Taormina, MDMidwest Gastroenterology Partners, PC

Tim VancePresidentVance Brothers, Inc.

William S. WalkerPresidentThe G.W. Van Keppel Company

J. Lyle Wells, Jr.Consultant

Jeff YowellPresidentDATACORE Marketing

North

Howard E. BradshawInvestor

Thomas E. BrusnahanCommunity Bank PresidentUMB Bank n.a.

John A. DillinghamChairmanDillingham Enterprises

Mrs. Frances A. Caldwell ErvinRetired

James S. Gutschow, CPASenior Vice President and CFOJohn A. Marshall Company

James HaugPresidentCater Time Vending


Jay W. Kimball, MD

Anthony L. Privitera IIContractor and DeveloperMark One Electric Company, Inc.

Russell RedburnPresidentCentral Power Systems & Services


James F. RobbThe Robb Companies

Dr. David L. SalleePresident William Jewell College


– ADVISORY BOARDS –

29

South

Ray AdamsChairmanAdams Automotive Group

Don R. Armacost, Jr.President and CEOPeterson Manufacturing Company

Todd E. BleakleyManagerBleakley Development Company, LLC

James M. BrosnahanCommunity Bank PresidentUMB Bank, n.a.

Donald L. ChapmanInvestor

Kevin F. CluneOwnerClune Equipment Leasing, LLC

Terry CrabtreeRetired


E. Frank EllisChairman & CEOSwope Community Enterprises

Zachary G. FeeVice PresidentMetro Business DevelopmentUMB Bank, n.a.

Jonathan FreidenVice PresidentMarketing & Business StrategyUS Toy Company

Edwin J. HollandPresidentTreat America



C.F. Long, Jr.OwnerPeculiar Farm Supply Company

Robert D. LongPresidentThe Bratton Corporation

David T. RadenPresidentTucker Midwest, Inc.

C. Wayne ReidPresidentReid Farms


John E. RobertsonPresidentRMF Steel Products Company

Thomas D. SandersConsultant to Senior ManagementMMC Corporation


Robert W. SpanglerAttorney and PartnerCrouch, Spangler and Douglas

Wyandotte County, Kansas

Eugene D. BrownInvestor – Retired

Patrick J. CrillyPresidentCommercial Claims

Frank E. DeCoursey IIRetired

Thomas DeCourseyAttorney at Law

Dalton HermesPresidentHermes Company

Randall P. KancelCommunity Bank PresidentUMB Bank, n.a.


James W. LacyPresidentElectrical Corporation of America, Inc.

Thomas LefkovitzRetired

George A. Moody, Jr.Retired



Albert SilvermanInvestor – Retired

Richard L. WisemanCo-OwnerGeorge F. Porter and Sons Funeral Home

Kansas Region

Abilene, Kansas


Stewart R. EtheringtonOwnerEtherington and Company Realtors

Wendell D. GuglerRetired

Alfred P. JonesRetired

Dale KoopPresidentCrop Service Center, Inc.

W. Patrick RobsonPresidentRobson Oil Company

Daryl D. RoneyCommunity Bank PresidentAbilene Banking CenterUMB National Bank of America


Hudson, Kansas


Leon L. DunnLivestock and Grain Producer

Gregg K. FischerCommunity Bank PresidentHudson Banking CenterUMB National Bank of America

Reuel L. FooteVice PresidentStafford County Flour Mill

Marlyn E. SpareFarmer

Thomas A. StickneyPresidentStickney Distributing, Inc.

Ronald D. StraubPresidentStraub International


Manhattan, Kansas


H. Alan BellInvestor

Philip BrokenickyPresident and CEONew Horizons RV Corporation

Neal L. FarmerSenior Vice PresidentManhattan Banking Center

Terry D. HartsCommunity Bank PresidentManhattan Banking CenterUMB National Bank of America

Donald E. InceRetired

Robert K. LarsenRetired

Barry J. SarvisPresident and OwnerBarry’s Drug Store and Dunne’s Pharmacy


Russell, Kansas


D. Leonard BrownFarmer and Rancher

Morris F. KrugPresidentKrug Farms, Inc.

Earl D. Merkel, MD

John F. MillsRetired

John A. O’LearyCommunity Bank PresidentRussell Banking CenterUMB National Bank of America

Larry SchafferPresidentChase Technology, LC

Kenneth L. StielowPresidentBar S Ranch, Inc.


Howard M. WehrmanPresident MHW Enterprises, Inc.

Anthony H. Witt, Jr.Witt Farm Company

Topeka, Kansas

Ronald D. AndersonPresident and OwnerANCO, Inc.

Craig L. AndersonChairman and CEOKansas RegionUMB Bank, n.a.

Wayne F. BassoCommunity Bank PresidentTopeka Banking CenterUMB Bank, n.a.

John D. DeBackerPresidentDeBacker’s, Inc.

Stanley DeFriesPartnerCoffman, DeFries and Northern, P.A.

John R. DietrickCEO and General CounselMonarch Management Corporation

Stuart DouthettPresidentDouthett & Company, CPA, PA

Jerry GlasgowPresidentPerformance Tire and Wheel


DeWitt HarknessPresidentWolfe’s Camera

Pamela ScottExecutive DirectorKansas Funeral Directors Association

Thomas A. SwankSenior Vice PresidentCFO/TreasurerSecurity Benefit

William G. WatsonPresident – Kansas RegionUMB Bank, n.a.

Wichita, Kansas

Craig L. AndersonChairman and CEOKansas RegionUMB Bank, n.a.

William J. BehringPresidentWestern First Aid & Safety LLC

William J. HampelPresidentHampel Oil Distributors, Inc.

William L. Oliver, Jr.Martin, Pringle, Oliver, Wallace and Bauer

Howard RedburnCentral Power Systems & Services


William Randall SummersSenior Vice PresidentUMB Bank, n.a.

Dan J. WallerVice PresidentConco, Inc.

William G. WatsonPresident – Kansas RegionUMB Bank, n.a.

Northern Missouri Region

North Central

R.E. (Mike) BakerPresidentPepsi Cola Bottling Company

S. Miles Dickson, DVM

Wayne A. FosterPresidentWayne Foster Farms, Inc.

Robert V. GreenCommunity Bank PresidentUMB Bank, n.a.

J. Stephen HamiltonRegional Bank PresidentNorthwest RegionUMB Bank, n.a.

Wayne M. HeringtonPartnerPoole Hardware


John M. Perry, DVMHampton Feedlot, Inc.

Larry C. SmithPresidentSmith Motors, Inc.

Phillip J. SmithExecutive Vice PresidentUMB Bank, n.a.

Robert W. WilsonEditor, Publisher and PartnerThe Milan Standard

Northwest

Brian BradleyDirector of Human ResourcesNPG Company

Jack W. ClaytonVice PresidentClayton Paper & Distribution, Inc.

James T. GravesPracticing AttorneyScopelitis, Garvin, Light & Hanson PC


Edward Lawrence HausmanPresidentAl J. Mueller Construction Company

John R. JarrettCEO Breadeaux Pisa, Inc.

Robert S. MeyersRetired

John V. PinzinoCommunity Bank PresidentUMB Bank, n.a.

Harry A. RobertsVice President BenefitsCBIZ BCK&W Insurance Services


Robert L. ThedingerRetired

Atchison, Kansas


Jonathan D. MizeExecutive Vice PresidentBlish-Mize Company

Eric NiemannFarmer

Kent R. WohlgemuthCommunity Bank PresidentUMB Bank, n.a.

Oklahoma Region

Oklahoma Regional Board

Craig L. AndersonChairman and CEOWest Central RegionUMB Bank, n.a.

Gentner F. DrummondAttorney at LawDrummond, Raymond and Drummond

Robert J. Fisher, Jr.PresidentOklahoma National StockYards Company

G.N. FursethProducer – OwnerG.N. Furseth Oil and Gas Producers

Royce M. HammonsChairman and CEOOklahoma RegionUMB Bank, n.a.

Jack S. HenleyCPAHenley and Johnson, PLLC

James C. KnealePresident & COOONEOK, Inc.

Ralph L. MasonInvestmentsMason-Harrison-Jarrard Enterprises

Tom J. McDanielPresidentOklahoma City University

Douglas F. PageExecutive Vice PresidentUMB Bank, n.a.Executive Vice PresidentUMB Financial Corporation

David R. SchaeferCommunity Bank PresidentOklahoma RegionUMB Bank, n.a.

William F. ShdeedAttorney at Law

Roger N. SimonsPresident and CEOSimons Petroleum, Inc.

South Central Region

Boonville, Missouri

Larry E. GrissumPartnerGrissum Farms, Inc.

Robert O. HerfurthRetired

Kenneth HuthPartnerHuth Farms Partnership

Marty L. JamesCommunity Bank PresidentUMB Bank, n.a.

John G. JewettRetired Accountant and Farmer

Charles P. MaloneRetiredCertified Public Accountant

Megan McGuireAttorneyCity of Boonville

Lewis W. MillerRetired

Dale ReesmanAttorneyWilliams, Reesman and Tate

Harold W. SchnetzlerPresidentSchnetzler Enterprises

Todd B. SnappPresidentSnapp’s Hardware, Inc.

Gil TroutChairman and CEOSouth Central RegionUMB Bank, n.a.

Columbia, Missouri

Charles P. Bondurant V, MDPhysicians Resources, Inc.

Jason A. BurchfieldPresident and OwnerWilgate Development, LLC

Gary R. DrewingPresident and Co-OwnerJoe Machens Ford

Susan L. HorakRE-MAX/Boone Realty

Stephen C. KnorrAssistant to the PresidentFederal RelationsUniversity of Missouri

Craig McGonagleCommunity Bank PresidentColumbiaUMB Bank, n.a.

Mark MehleMDM Enterprises

Jeffrey W. Parker, MDColumbia Orthopaedic Group

Trent StoberOwnerMEC Water Resources


Randall WrightGeneral ManagerKMIZ-17, Fox 11

Jefferson City, Missouri

Carrie CarrolOwner and ManagerCarrie’s Hallmark Shop

Robert E. Dallmeyer, Jr.RetiredThe Southwest Group

F. Joe DelongOwner and CEODelong’s, Inc.


31

Sherry DoctorianPartnerArmstrong Teasdale Law Firm

Robert J. Hawkins, Jr.Retired

Larry V. SchepersRetiredUMB Bank, n.a.

R. Brad ScrivnerCommunity Bank PresidentJefferson CityUMB Bank, n.a.

Rod SmithSports DirectorKRCG TV 13


Springfield, Missouri

Ann Marie BakerCommunity Bank PresidentUMB Bank, n.a.

Annie BuschExecutive DirectorSpringfield Greene County Library

William H. DarrChairmanAmerican Dehydrated Foods, Inc./International Dehydrated Foods, Inc.

Harold GarrisonPresidentGarrison’s LLC


John T. GentryPresident and CEOPositronic Industries, Inc.

Donald GolikChairman of the Board and CFOPaul Mueller Company

Louis GriesemerPresidentSpringfield Underground, Inc.

Rex W. KayPresidentKay Concrete Materials Company

Alvin RohrsPresident and CEOStudents in Free Enterprise

David A. TrottierPresidentSummer Fresh Supermarkets, Inc.


E. Jack Webster, Jr.Chairman of the BoardPetrol Properties, Inc.

Mark A. WilliamsCEOH.E. Williams, Inc.

Carthage, Missouri

Edgar B. Freund, CLU, CHFCAgency ManagerState Farm Insurance Company

Mark GrierCFOICS Logistics

William E. MichelRetired

E. Elliott PotterPresidentPotter Family Partnership

Dale K. RifeRetiredCertified Public Accountant

David G. SandersRetired

James K. SeitzCommunity Bank PresidentUMB Bank, n.a.


Allan VanDenBergPresidentLabel Industries, Inc.dba National Tool Warehouse

Ft. Scott, Kansas

Kenneth S. AndersonCommunity Bank PresidentUMB Bank, n.a.

David R. ShepherdPresidentShepherd Team Auto Plaza

Donald L. StewartPresidentStewart Realty Company, Inc.

Gil TroutChairman and CEOSouth Central RegionUMB Bank, n.a. Robert TuchschererPharmacist, Rancher and Farmer

Joplin, Missouri

Rick BrownVice PresidentRoper Honda

Robert W. Heiniger, Jr.PresidentCES, Inc.

Jeffery H. JohnsonCommunity Bank PresidentUMB Bank, n.a.

Anthony R. KassabPresidentKassab’s, Inc.

Hal D. RoperPresidentRoper Pontiac GMC, Inc.

Randy RoperVice PresidentRoper Pontiac GMC, Inc.

Les ScheurichPresidentMidwest Tool, Inc.


Monett, Missouri

Denny BondCommunity Bank PresidentUMB Bank, n.a.

Michael D. GarrettRetiredAssociate Circuit Judge

Steve KayVice PresidentKay Concrete Materials Company

Gerald A. McCaffreyPresidentGrande Tire Company

William H. MedlinRancher

Nolan R. MeierDairy Farmer

Howard R. RandallPresidentGeneral Investments, Inc.

Michael A. ScabaroziPlant ManagerInternational Dehydrated Foods, Inc.


Warrensburg, Missouri

Roger BaldwinBaldwin Cattle and Grain Farms, Inc.

M. Scott CristCommunity Bank PresidentUMB Bank, n.a.

The Honorable Joe Dandurand17th Judicial Circuit Court Judge

Donald W. SmarrFarmer and Stockman

Jerry W. SwisherChairmanSwisher Mower and Machine, Inc.


Gregory B. VinardiRetired

Deleta Parmley WilliamsFormer State Representative121st District, Missouri

Warsaw, Missouri

William G. BunchOwnerBunch Family Farms, LLCMid Missouri Autosports.com, Inc.

John CookVice PresidentCook Tractor, Inc.

Darace EatonPresidentEaton Enterprises, Inc.

Martha M. FajenPresidentTRISTAR Sporting Arms, Ltd

Scotty E. HendersonOwner and ManagerHenderson Ranch and Cattle Company

Thomas A. HillCommunity Bank PresidentUMB Bank, n.a.

Shawn HiltyHilty Quarries, Inc.West Central Concrete, LLC

Stanfred L. HiltyChairman of the BoardHilty Quarries, Inc.

Kenneth F. KammeyerRetired

Jerry D. LumpeRetired

James A. MillerDirector Reser Funeral HomeDavis-Miller Funeral Home

Paul RossRetired



“UMB”®, the “UMB logo”® and “Count on more.”® – Reg. U.S. Pat. & Tm. Off. These names, symbols and statements are registered trademarks of UMB Financial Corporation. BankTrade® is a registered trademark of Complex Systems Inc. UnityTM Performance and UnityTM Surveys is a registered trademark of Confluence. InvesTier® is a registered trademark of SunGard. ©

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g– CORPORATE INFORMATION –

Safe Harbor Statement

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

UMB Financial Corporation (NASDAQ: UMBF) Credit Ratings as of December 31, 2007

Credit Ratings

S&P Moody’s Fitch

Long-term Issuer A- / Outlook Stable A3 / Outlook Stable A+ / Outlook StableShort-term/Commercial Paper - - F1+

Bank Individual - - B

Bank Support - - 5

Credit Ratings (Subsidiaries)

S&P Moody’s Fitch

UMB Bank, National AssociationCertificate of Deposit - A2 / Outlook Stable AA- / Outlook StableBank Individual - C+ B

Bank Support - - 5

UMB Financial Corporation1010 Grand BoulevardPost Office Box 419226Kansas City, MO 64141-6226UMB.com

Transfer Agent:Computershare Trust Company, n.a.P.O. Box 43078Providence, RI 02940-3078800.884.4225

10-K Request:We will furnish, without charge, a copy of our 2007 Report to the SEC (Form 10-K) to any shareholder upon written request. Please specify Form 10-K when requesting.

The report and 10-K filing will also be available online at UMB.com.

To contact us, please call: 816.860.7000 or 800.821.2171

Financial information, contact:Michael D. HagedornChief Financial Officer

Begonya KlumbInvestor Relations

For other inquiries, contact:Sales, Marketing & Communication: [email protected]

Stock Quotation Symbol:UMBFNASDAQ National Market System

Notice of Annual Meeting: Tuesday, April 22, 2008UMB Financial Corporation1010 Grand BoulevardKansas City, MO 64141-6226

Printed on recycled paper.

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Our experienced Commercial Banking staff prides itself on the longstanding relationships we cultivate with our customers. With such a strong focus on the customer relationship, UMB is consistently recognized as a leading provider of commercial products and services.

Percent of Total Revenue (Net interest plus noninterest income) Overview

INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL OR STATE GOVERNMENT AGENCY • NOT GUARANTEED BY THE BANK • MAY GO DOWN IN VALUE

The UMB Scout Funds are distributed by UMB Distribution Services, LLC, an affiliate of UMB Financial Corporation, and managed by Scout Investment Advisors, Inc., a subsidiary of UMB Bank, n.a. “UMB,” and the Scout design — Reg. U.S. Pat. & Tm.

Foreign investments present additional risks due to currency fluctuations, economic and political factors, government regulations, differences in accounting standards and other factors. Investments in emerging markets involve even greater risks.

11%

11% UMB Fund Services is a nationally respected provider to the mutual fund and alternative investments industry. We have the people, services and technology to help customers attract and retain assets. The UMBFS team takes pride in bringing complete, innovative and flexible solutions— by listening, anticipating and responding carefully to the needs of our customers.

UMB Fund ServicesAdministration and Fund Accounting

Alternative Investments

Investor Services and Transfer Agency

Cash Management †

Mutual Fund Custody †

Marketing and Distribution

†Provided by UMB Bank, n.a.

Commercial Banking & LendingCommercial Lending

Capital Markets

Letters of Credit

5%

UMB Banking Services is a multi-faceted division of experienced professionals that provide a full range of products and services to banks, municipalities, insurance companies and corporations. Through the years, UMB has built a reputation based on honesty, responsibility and responsiveness. The many services we offer are designed to assist our customers in working toward their goals.

Banking ServicesCorrespondent Banking

Investment Banking

Public Finance

Institutional Fixed Income

UMB’s Asset Management group is a full-service investment advisory, trust and custodial organization that combines the strength, resources and expertise of a multibillion-dollar firm with the personalized service of a private bank. UMB Asset Management also offers customers comprehensive, competitive investment products and services with a family of UMB mutual funds and other outside money managers.

19%

Asset ManagementBrokerage*

Mutual Funds

Private Banking

Individual Retirement Accounts

Personal Trust / Custody Services

Corporate Trust / Escrow Services

Institutional Investment Management

Personal Investment and Wealth Management

UMB offers a comprehensive suite of consumer products and services through 135 branches, 592 ATMs and online at umb.com. From traditional products for checking and savings, to credit and debit products, customers can choose from a variety of products to meet their growing financial needs. Whether it’s a mortgage, HELOC, insurance or a car loan—the UMB team takes the time to find the right products for our customers.31%

Consumer ServicesConsumer Banking

– Checking / Savings Accounts

Online Banking

Credit and Debit Cards

Small Business Banking

Insurance*

Consumer Lending

Mortgage

Recognized as an industry leader in the payments sector, UMB continues to make investments in a variety of products designed to help clients achieve both immediate and long-term financial objectives. By making use of advanced technology, UMB is positioned to provide unique advantages in the areas of payment processing and treasury management.

23%Payment & Technology SolutionsTreasury Management

Merchant Services

Healthcare Services

Foreign Exchange

Commercial Card

Commercial loans grew at a double-digit pace for the third consecutive year. Moved to 56th overall on American Banker’s list of bank holding companies in the United States with the most domestic Commercial & Industrial loans, an improvement of three positions.

Ranked 107th on American Banker’s list of bank holding companies with the largest business loan portfolios in the United States.

Introduced BankTrade®, a new automated letter of credit system which provides enhanced functionality and reporting for UMB’s back office support. Using the more robust system and enhancements, UMB can offer faster, more efficient service to customers.

Highlights

Increased noninterest income by 15.9 percent.

Increased pre-tax net income by 53.6 percent.

Successfully implemented two Confluence products — UnityTM Performance and UnityTM Surveys. Both products allow for the automated data collection, creation, confirmation and delivery of fund performance, yields and historical fund information for third-party reporting.

UMB Fund Services (UMBFS) co-sponsored the Investment Managers Series Trust in 2007, allowing UMBFS to provide smaller mutual funds with a simple, cost-efficient means of operation.

Successfully implemented SunGard’s new InvesTier® software application in the fourth quarter of 2007. InvesTier® is a web-based, real-time general ledger and investment allocation system for hedge funds.

Municipal underwriting continued at a strong pace as UMB underwrote 162 new municipal bond issues, including 144 as senior manager. UMB provides investment services directly to more than 500 municipalities and governmental agencies, and thousands more indirectly through its correspondent banks.

Launched a new asset-liability consulting and software service for banks. One in eight banks in the United States uses at least one UMB product or service.

New services included the successful launch of a Web-based education system and back office support for UMB’s HSA product for the correspondent banking network. UMB is a member of the selling group of the Federal Home Loan Bank (FHLB), Federal National Mortgage Association (FNMA) and the Federal Farm Credit Banks (FFCB).

Expanded the Asset Management and Corporate Trust teams in the Denver market to better serve customers. Introduced Private Banking in the Springfield market to support the growing demand from the high-net-worth market. In addition, both St. Louis and Denver hired new market Presidents to oversee all of UMB’s Asset Management product offerings in these respective markets.

In Thompson Financial’s 2007 rankings, UMB Corporate Trust was ranked fourth by number of transactions of overall municipal trusteeships and paying agencies combined. Mutual Funds James Moffett, lead portfolio manager of the UMB Scout International Fund (UMBWX) and assistant portfolio managers Gary Anderson, Michael Fogarty and Michael Stack, were named runners-up for the Morningstar 2007 International-Stock Manager of

the Year award. This marked the second time such an honor was bestowed upon them within the last three years. Scout Investment Advisors, Inc. launched the UMB Scout International Discovery Fund (UMBDX) in 2007. The Fund focuses on international companies with a targeted market capitalization range of $500 million to $17 billion. James Moffett serves as the lead portfolio manager, assisted by co-portfolio manager Michael Stack.**

Increased noninterest income by 7.3 percent.

Overall consumer deposits grew in 2007 for the fourth consecutive year, translating into a net growth of $132.9 million.

Home equity lines of credit grew more than 40 percent for the fifth consecutive year, new credit card account production grew by 48 percent and branch-originated mortgages grew by 12 percent.

Implemented a new sales management system and training in all markets which resulted in an 11.7 percent increase in services per customer relationship.

Small Business celebrated its first year of offering a full suite of products to all markets, resulting in deposit growth of 54 percent and loan growth of 97 percent for this business.

UMB expanded delivery service channels with four new branches and enhanced online banking capabilities, resulting in a 24 percent increase in customer usage.

Currently, the 14th largest issuer of purchasing cards, and the 37th largest commercial card issuer in the United States for all product types. Produced another record year in commercial and purchasing card program sales volume with $531 million, averaging 20 percent growth per year for the past 12 years.

Ranked as the No. 1 ACH (Automated Clearing House) originator in the Midwest and among the top 30 largest ACH originators in the United States by NACHA—The Electronic Payments AssociationTM. In May, UMB deployed an upgraded enhanced version of the UMB Remote Deposit application from RemitPro, which supports new and existing ACH rules, Accounts Receivable Entries (ARC) and Back Office Conversion (BOC).

More than 790,000 healthcare spending accounts at year-end, including Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs). UMB Healthcare Services exceeded $100 million in HSA deposits and mutual fund assets. This represented a 53 percent increase in 2007, making UMB one of the top HSA custodians in the country.

*Insurance and Fixed Annuities are offered by UMB Scout Insurance Services, Inc. Securities are offered by UMB Financial Services, Inc. (Member FINRA, SIPC). Both are subsidiaries of UMB Bank, n.a. and are separate companies from the bank.

**You should consider the Funds’ investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information about the Funds, call 800.996.2862 or visit umbscoutfunds.com. Please read the prospectus carefully before investing.

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UMB.COM

TIMES MAY CHANGE, BUT OUR STANDARDS ARE UNWAVERING.

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