UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38481 UMB FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) | Missouri | 43-0903811 | | --- | --- | | ...

| --- | --- | --- | |-----------------|--------------|-------| | | | | | 2nd | Quarter 2021 | | | Kansas City, MO | | | Presentation Index | --- | --- | |---------------------------------------|-------| | Corporate Overview | 3 | | Opportunity – Our Investment Thesis | 8 | | 2nd Quarter 2021 Results | 17 | | Line of Business Updates | 32 | | Appendix | 42 | | Board of Directors | | | Forward-Looking Statements | | | Non-GAAP Reconciliations | | | Peer Group | | Please refer to the Forward-Looking Statements ...

Financial Data and Key Metrics Changes - Net income for Q2 2021 was $87.4 million, or $1.79 per share, with a pretax preprovision income of $138 million, or $2.83 per share [14] - Net interest income increased by 3.6% from the first quarter and 12.8% year-over-year, despite a 31 basis point decline in earning asset yields [15][31] - Fee income for the quarter rose by 21% on a linked-quarter basis, significantly impacted by a $7.2 million gain from Tattooed Chef investments [16][36] - The provision expense was higher due to strong loan growth and elevated charge-offs, primarily from one commercial factoring relationship [9] Business Line Data and Key Metrics Changes - Average loan growth was 19% on a linked-quarter annualized basis, excluding PPP balances [8] - Institutional banking contributed more than half of the fee income, with Corporate Trust and Specialty Trust teams experiencing growth of 68% and 109% respectively [19] - Fund services assets under administration increased to $379 billion from $286 billion year-over-year, with a 30% increase in fee income contribution [20] Market Data and Key Metrics Changes - The average residential mortgage balances increased by 6.2% from the first quarter to $1.7 billion, with funded mortgage loans increasing by 33% to $276 million [24] - Commercial line utilization slightly increased to 32%, with growth in C&I coming from various industries [23] - The company has seen a resurgence in aviation financing activity, particularly benefiting from its location in Dublin [20] Company Strategy and Development Direction - The company aims to grow shareholder value through organic growth and opportunistic acquisitions, with a focus on maintaining a strong capital position [29] - The Board approved a 15.6% increase in the quarterly dividend, reflecting a commitment to returning value to shareholders [29] - The company is actively seeking M&A opportunities that align with its culture and add value, while also focusing on loan growth in under-penetrated markets [70] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic recovery and its impact on loan growth, citing significant liquidity and stimulus in the market [62] - The company expects charge-offs to return to historical levels of about 25 to 30 basis points for the full year of 2021 [11] - Management noted that the transition back to office work is underway, which is expected to enhance productivity and customer engagement [12] Other Important Information - The effective tax rate for the first half of the year was 17%, with an anticipated range of 16% to 18% for the full year [40] - The company maintains strong capital ratios, with a total risk-based capital of 13.84% and a CET1 ratio of 11.91% [40] Q&A Session Summary Question: Details on the factoring loss - Management clarified that the loss was tied to a specific commercial factoring relationship and emphasized the overall strong performance of the loan portfolio [46][48] Question: Expectations for AUA growth - Management indicated that new business pipelines remain strong, but asset values are harder to predict due to market conditions [55] Question: Drivers for C&I growth and line utilization - Management attributed loan growth to a recovering economy and significant liquidity, with new business from new customers driving C&I growth [62][64] Question: Capital deployment priorities - Management expressed a desire to deploy capital for growth and pursue M&A opportunities, while also increasing the dividend as a catch-up measure [68][69] Question: Fee income performance - Management noted strong performance across all asset-based businesses, with significant business development and new client activity contributing to fee income growth [78][80]

Financial Data and Key Metrics Changes - Net income for Q1 2021 was $92.6 million, or $1.91 per share, with pretax pre-provision income on an FTE basis at $108.7 million, or $2.24 per share [9][31] - Year-over-year, net interest income increased by 11.6%, despite a challenging interest rate environment [12] - Noninterest income for the quarter was $108.9 million, impacted by a $16.1 million pretax loss on the valuation of Tattooed Chef investment [37] Business Line Data and Key Metrics Changes - Trust and Securities Processing income increased by 8% from the previous quarter and nearly 17% year-over-year, with assets under administration in fund services rising to $345 billion from $252 billion a year ago [14] - Specialty Corporate Trust launched internationally, opening an office in Dublin, enhancing growth potential in the aviation trust business [15] - The Investor Solutions team added 4 fintech relationships in 2020 and is seeing traction from recent investments in private wealth services [17] Market Data and Key Metrics Changes - Average loan-to-deposit ratio was 61% for the quarter, with average balances of core deposits increasing by 7.5% on a linked-quarter basis and 28.8% year-over-year [23][24] - Modified loan balances declined to just $14 million, under 0.5% of loans, indicating strong credit quality [27] - The company experienced an 8.4% linked-quarter annualized increase in average loan balances, excluding PPP [20] Company Strategy and Development Direction - The company is focused on growing market share in unpenetrated markets and verticals, with a robust pipeline in both C&I and CRE [22][72] - There is an active M&A process, with ongoing conversations with other banks, seeking quality deals rather than pursuing transactions for the sake of it [61][104] - The company is also exploring partnerships in fintech, offering banking as a service products to enhance fee income [63] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer sentiment is returning to normalized levels, with debit and credit card spending returning to pre-pandemic levels [8] - The company anticipates continued strong momentum and market opportunities, despite uncertainties related to COVID trends [22] - There is cautious optimism regarding the potential for increased spending related to the proposed infrastructure bill [16] Other Important Information - The total allowance for credit losses on loans stands at $202.8 million, with an allowance to loan coverage of 1.23% [28] - The company maintains strong capital ratios, with total risk-based capital at 14.28% and CET1 ratio at 12.25% [39] - The wealth management business had a strong quarter, with new business and the launch of a family office business [106] Q&A Session Summary Question: Clarification on net interest income guidance for Q2 - Management confirmed modest pressure on GAAP margin for Q2, with confidence in net interest income growth due to loan growth and securities portfolio deployment [41][50] Question: Loan production levels and expectations for growth - Management indicated that recent loan production declines are primarily timing-related, with expectations for strong growth as the economy normalizes [58][72] Question: Capital deployment and M&A outlook - Management is actively pursuing M&A opportunities but is focused on quality deals rather than rushing into transactions [61][104] Question: Sustainability of institutional fee income growth - Management expressed confidence in the sustainability of growth in fund services and corporate trust, driven by increased activity in private investing [90][92]

Commission file number 001-38481 UMB FINANCIAL CORPORATION UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Exact name of registrant as specified in its charter) | Missouri | 43-0903811 | | --- | --- | | ...

| --- | --- | --- | |-----------------|--------------|-------| | | | | | | Quarter 2021 | | | Kansas City, MO | | | Presentation Index Opportunity – Our Investment Thesis 7 1st Quarter 2021 Results 16 Line of Business Updates 30 Appendix 40 Corporate Overview 3 Board of Directors Forward-Looking Statements Non-GAAP Reconciliations Please refer to the Forward-Looking Statements on page 42 for important disclosures about information contained in this presentation. 2 Corporate Overview | --- | --- | --- | --- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38481 UMB FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Missouri 43-0903811 1010 Grand Boulevard, Ka ...

UMB Financial Corporation (NASDAQ:UMBF) Q4 2020 Earnings Conference Call January 27, 2021 9:30 AM ET Company Participants Kay Gregory - Investor Relations Mariner Kemper - President and Chief Executive Officer Ram Shankar - Chief Financial Officer Conference Call Participants Ebrahim Poonawala - Bank of America Chris McGratty - KBW Nathan Rice - Piper Sandler Jared Shaw - Wells Fargo Securities David Long - Raymond James Operator Good day, and welcome to the UMB Financial Fourth Quarter and Full Year End 20 ...

UME Different by Design. UMB Financial Fourth Quarter 2020 January 26, 2021 Cautionary Notice about Forward-Looking Statements This presentation of UMB Financial Corporation (the "company," "our," "us," or "we") contains, and our other communications may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often ...

Part I [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Unaudited financial statements reflect significant asset growth, increased Q3 net income, and higher credit loss provisions due to CECL adoption [Consolidated Balance Sheets](index=3&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Total assets grew to $30.3 billion by September 30, 2020, fueled by loan and securities growth, with deposits reaching $24.7 billion Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2020 (thousands) | Dec 31, 2019 (thousands) | Change ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | **$30,250,972** | **$26,561,355** | **$3,689,617** | **13.9%** | | Net Loans | $15,738,489 | $13,329,934 | $2,408,555 | 18.1% | | Total Securities | $9,995,895 | $8,717,502 | $1,278,393 | 14.7% | | **Total Liabilities** | **$27,396,792** | **$23,954,915** | **$3,441,877** | **14.4%** | | Total Deposits | $24,737,907 | $21,603,244 | $3,134,663 | 14.5% | | **Total Shareholders' Equity** | **$2,854,180** | **$2,606,440** | **$247,740** | **9.5%** | [Consolidated Statements of Income](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Net income for Q3 2020 increased to $73.1 million, driven by higher net interest income, but nine-month net income decreased due to increased credit loss provisions Q3 2020 vs Q3 2019 Performance (in thousands, except EPS) | Metric | Q3 2020 | Q3 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $184,384 | $168,260 | 9.6% | | Provision for Credit Losses | $16,000 | $7,500 | 113.3% | | Noninterest Income | $112,996 | $103,635 | 9.0% | | **Net Income** | **$73,092** | **$62,382** | **17.2%** | | **Diluted EPS** | **$1.52** | **$1.27** | **19.7%** | Nine Months 2020 vs 2019 Performance (in thousands, except EPS) | Metric | Nine Months 2020 | Nine Months 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $536,554 | $498,542 | 7.6% | | Provision for Credit Losses | $125,500 | $30,850 | 306.8% | | Noninterest Income | $331,876 | $316,415 | 4.9% | | **Net Income** | **$130,182** | **$177,085** | **-26.5%** | | **Diluted EPS** | **$2.69** | **$3.61** | **-25.5%** | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Q3 2020 comprehensive income decreased to $87.9 million due to lower OCI, while nine-month comprehensive income also declined to $346.1 million Comprehensive Income Summary (in thousands) | Component | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $73,092 | $62,382 | $130,182 | $177,085 | | Other Comprehensive Income | $14,841 | $33,404 | $215,923 | $191,803 | | **Comprehensive Income** | **$87,933** | **$95,786** | **$346,105** | **$368,888** | [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20SHAREHOLDERS%27%20EQUITY) Shareholders' equity increased to $2.85 billion by September 30, 2020, driven by net income and OCI, partially offset by dividends and share repurchases - Key drivers for the increase in shareholders' equity during the first nine months of 2020 were **net income of $130.2 million** and a significant increase in **accumulated other comprehensive income of $215.9 million**[17](index=17&type=chunk) - Shareholder returns included **$45.2 million in cash dividends**. The company also repurchased **$59.6 million of its stock** during the nine-month period[17](index=17&type=chunk) - The adoption of ASU No. 2016-13 (CECL) resulted in a **$7.0 million reduction to retained earnings** as a cumulative effect adjustment on January 1, 2020[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Operating activities provided $215.6 million in cash, investing activities used $3.14 billion, and financing activities provided $3.28 billion, resulting in a $350.1 million cash increase Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $215,633 | $190,510 | | Net Cash from Investing Activities | ($3,143,895) | ($1,326,901) | | Net Cash from Financing Activities | $3,278,330 | $255,228 | | **Net Increase (Decrease) in Cash** | **$350,068** | **($881,163)** | [Notes to Consolidated Financial Statements](index=9&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Notes detail accounting policies, including CECL adoption, loan portfolio, credit quality, COVID-19 loan modifications, and a significant subsequent equity investment gain - The company adopted the CECL standard on January 1, 2020, resulting in a **$9.0 million increase to the allowance for credit losses** and a **$7.0 million reduction to retained earnings**[36](index=36&type=chunk) - As of September 30, 2020, the company had **980 remaining COVID-19 related loan modifications** with a total balance of **$707.1 million**, primarily in the form of payment deferrals[330](index=330&type=chunk)[331](index=331&type=chunk) - Subsequent to the quarter end, on October 15, 2020, the company recognized a significant gain from its ownership interest in Ittella International, Inc (renamed Tattooed Chef, Inc) following a business combination[208](index=208&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses COVID-19 impacts, including CECL and PPP, with Q3 2020 net income rising due to strong revenue growth, despite increased credit loss provisions, maintaining strong capital [Overview](index=54&type=section&id=Overview) The company's 2020 performance was shaped by COVID-19, leading to customer support via PPP and loan modifications, while focusing on strategic objectives like efficiency, net interest income growth, and capital management - The company is actively managing the impacts of the COVID-19 pandemic, including building the allowance for credit losses under the new CECL standard and incurring **$1.4 million in nonrecurring COVID-19 specific expenses** in Q3 2020[218](index=218&type=chunk) - UMB has provided significant customer support, including originating over **5,000 PPP loans totaling $1.5 billion** and offering payment deferrals and other loan modifications[219](index=219&type=chunk) - The company's four strategic objectives are: continuously improving operating efficiencies, increasing net interest income, growing noninterest revenue, and effective capital management[222](index=222&type=chunk)[223](index=223&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk) [Earnings Summary](index=56&type=section&id=Earnings%20Summary) Q3 2020 net income increased 17.2% to $73.1 million, driven by higher net interest and noninterest income, despite increased credit loss provisions, with strong returns on assets and equity Q3 2020 Key Performance Metrics | Metric | Q3 2020 | Q3 2019 | | :--- | :--- | :--- | | Net Income | $73.1 million | $62.4 million | | Diluted EPS | $1.52 | $1.27 | | Return on Average Assets | 0.99% | 1.03% | | Return on Average Equity | 10.23% | 9.69% | [Net Interest Income](index=57&type=section&id=Net%20Interest%20Income) Q3 2020 net interest income increased 9.6% to $190.5 million due to higher earning assets, including PPP loans, despite a 36 basis point compression in net interest margin Net Interest Income and Margin Analysis (Q3 2020 vs Q3 2019) | Metric | Q3 2020 | Q3 2019 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income (tax-equivalent) | $190.5M | $174.4M | +$16.1M | | Average Earning Assets | $27.8B | $22.4B | +$5.4B | | Net Interest Spread | 2.63% | 2.64% | -1 bps | | Net Interest Margin (tax-equivalent) | 2.73% | 3.09% | -36 bps | - The increase in net interest income was primarily due to favorable volume variance on loans and securities, which offset unfavorable rate variances on earning assets[235](index=235&type=chunk)[242](index=242&type=chunk) [Provision and Allowance for Credit Losses](index=60&type=section&id=Provision%20and%20Allowance%20for%20Credit%20Losses) Provision for credit losses significantly increased to $16.0 million in Q3 2020 and $125.5 million for nine months, reflecting CECL and COVID-19 impacts, raising the allowance to 1.33% of loans Provision and Allowance for Credit Losses (in millions) | Metric | Q3 2020 | Q3 2019 | Nine Months 2020 | Nine Months 2019 | | :--- | :--- | :--- | :--- | :--- | | Provision for Credit Losses | $16.0 | $7.5 | $125.5 | $30.9 | | Net Charge-offs | N/A | N/A | $18.3 | $27.1 | - The allowance for credit losses on loans to total loans ratio increased to **1.33%** as of September 30, 2020, compared to **0.76%** at year-end 2019[254](index=254&type=chunk) [Noninterest Income](index=62&type=section&id=Noninterest%20Income) Q3 2020 noninterest income increased 9.0% to $113.0 million, primarily driven by higher trust and securities processing fees, trading and investment banking fees, and other income Noninterest Income Breakdown (Q3 2020 vs Q3 2019, in thousands) | Category | Q3 2020 | Q3 2019 | Change ($) | | :--- | :--- | :--- | :--- | | Trust and securities processing | $50,552 | $45,218 | $5,334 | | Trading and investment banking | $8,678 | $5,712 | $2,966 | | Brokerage fees | $4,819 | $8,102 | ($3,283) | | Bankcard fees | $15,295 | $16,895 | ($1,600) | | Other | $13,432 | $3,711 | $9,721 | | **Total Noninterest Income** | **$112,996** | **$103,635** | **$9,361** | [Noninterest Expense](index=64&type=section&id=Noninterest%20Expense) Q3 2020 noninterest expense increased 3.4% to $198.0 million, primarily due to higher salaries and employee benefits, partially offset by decreases in marketing, legal, and other expenses Noninterest Expense Breakdown (Q3 2020 vs Q3 2019, in thousands) | Category | Q3 2020 | Q3 2019 | Change ($) | | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $124,194 | $110,153 | $14,041 | | Marketing and business development | $3,038 | $5,655 | ($2,617) | | Legal and consulting | $7,244 | $8,374 | ($1,130) | | Other | $5,603 | $8,593 | ($2,990) | | **Total Noninterest Expense** | **$197,995** | **$191,397** | **$6,598** | - Q3 2020 expenses included **$1.4 million of non-recurring COVID-19 costs** and an increase of **$2.7 million in severance expenses** compared to Q3 2019[267](index=267&type=chunk) [Strategic Lines of Business](index=66&type=section&id=Strategic%20Lines%20of%20Business) For nine months, Commercial Banking net income decreased to $86.6 million, Institutional Banking saw a slight decrease to $52.7 million, and Personal Banking recorded a $9.1 million net loss Net Income by Business Segment (Nine Months Ended Sep 30, in thousands) | Segment | 2020 | 2019 | Change ($) | | :--- | :--- | :--- | :--- | | Commercial Banking | $86,605 | $120,333 | ($33,728) | | Institutional Banking | $52,698 | $55,478 | ($2,780) | | Personal Banking | ($9,121) | $1,274 | ($10,395) | - In Q1 2020, the Healthcare Services segment was merged into the Institutional Banking segment to better reflect management's evaluation of the business; prior period results have been reclassified for comparability[274](index=274&type=chunk) [Balance Sheet Analysis](index=68&type=section&id=Balance%20Sheet%20Analysis) Total assets grew 13.9% to $30.3 billion by September 30, 2020, driven by a $2.5 billion increase in loans (including PPP) and a $1.3 billion rise in securities, with deposits increasing $3.1 billion - Total assets increased by **$3.7 billion** since December 31, 2019, driven by a **$2.5 billion increase in loans** and a **$1.3 billion increase in AFS securities**[280](index=280&type=chunk) - The increase in commercial and industrial loans is primarily related to the Company's participation in the PPP, with **PPP loans totaling $1.5 billion** as of September 30, 2020[284](index=284&type=chunk) - In September 2020, the Company issued **$200.0 million in subordinated notes** to be used for general corporate purposes, including contributing capital to the Bank[293](index=293&type=chunk) [Capital and Liquidity](index=70&type=section&id=Capital%20and%20Liquidity) The company maintains strong capital and liquidity, with shareholders' equity at $2.9 billion and all regulatory capital ratios well above minimums, supported by share repurchases and dividends Regulatory Capital Ratios as of September 30, 2020 | Ratio | Sep 30, 2020 | Sep 30, 2019 | | :--- | :--- | :--- | | Common equity tier 1 capital ratio | 11.93% | 12.53% | | Tier 1 risk-based capital ratio | 11.93% | 12.53% | | Total risk-based capital ratio | 14.17% | 13.51% | | Leverage ratio | 8.19% | 9.62% | - The company repurchased **1,140,399 shares of common stock** during the first nine months of 2020, including **653,498 shares** under an Accelerated Share Repurchase (ASR) agreement[298](index=298&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.32 per share**, an increase from the **$0.31** paid in the prior quarter[299](index=299&type=chunk)[17](index=17&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages interest rate risk, showing asset sensitivity, with NII projected to increase in rising rates, while credit risk is managed with nonperforming loans at $93.7 million and $707.1 million in COVID-19 loan modifications [Interest Rate Risk](index=73&type=section&id=Interest%20Rate%20Risk) The company manages interest rate risk, with its balance sheet slightly asset sensitive as of September 30, 2020, projecting NII increases in rising rate scenarios and decreases in falling rate scenarios Net Interest Income Sensitivity (Rate Shock Scenario, % Change) | Change in Basis Points | Year One (as of Sep 30, 2020) | Year Two (as of Sep 30, 2020) | | :--- | :--- | :--- | | +300 | 4.0% | 16.0% | | +200 | 2.7% | 11.5% | | +100 | 1.2% | 6.3% | | -100 | (3.7)% | (6.4)% | [Credit Risk Management](index=75&type=section&id=Credit%20Risk%20Management) Credit risk is managed with nonperforming loans increasing to $93.7 million by September 30, 2020, representing 0.59% of total loans, and $707.1 million in COVID-19 related loan modifications outstanding Loan Quality Summary (in thousands) | Metric | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Total nonperforming loans | $93,695 | $56,347 | | Total nonperforming assets | $99,373 | $59,282 | | Nonperforming loans as a % of loans | 0.59% | 0.42% | | Allowance for credit losses on loans as a % of loans | 1.33% | 0.76% | COVID-19 Loan Modifications as of Sep 30, 2020 (in thousands) | Loan Type | Balance | | :--- | :--- | | Commercial and industrial | $197,325 | | Commercial real estate | $476,631 | | Consumer real estate | $20,410 | | **Total** | **$707,054** | [Controls and Procedures](index=79&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of September 30, 2020, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[345](index=345&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[346](index=346&type=chunk) Part II [Legal Proceedings](index=80&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings, none of which are expected to have a materially adverse effect on its financial condition or results of operations - In the opinion of management, none of the ongoing lawsuits are expected to have a materially adverse effect on the company's financial position, results of operations, or cash flows[348](index=348&type=chunk) [Risk Factors](index=80&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to the company's risk factors were reported for the quarter, consistent with prior disclosures - No material changes to risk factors were reported for the quarter[349](index=349&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=80&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q3 2020, the company repurchased 2,262 shares of common stock at an average price of $46.91, with 1.88 million shares remaining under the repurchase authorization Issuer Purchase of Equity Securities (Q3 2020) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2020 | 2,186 | $46.82 | | August 2020 | 0 | N/A | | September 2020 | 76 | $49.51 | | **Total** | **2,262** | **$46.91** | - As of September 30, 2020, approximately **1.88 million shares** may yet be purchased under the current repurchase authorization which terminates on April 27, 2021[352](index=352&type=chunk) [Exhibits](index=81&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including corporate documents, indenture agreements, CEO/CFO certifications, and XBRL data files