Financial Data and Key Metrics Changes - The company reported a return on average assets of 1.20%, up from 1.04% in the third quarter, and a return on average common equity of 11.27%, an increase from 10.14% [7] - The efficiency ratio improved to 55.5 from 58.1 in the third quarter and 61.8 a year ago [7] - Net income available for common shareholders for the fourth quarter was $209.5 million or $2.74 per share, a 16.1% increase from the third quarter [7] - For the full year, the company earned $684.6 million or $9.29 per share [8] Business Line Data and Key Metrics Changes - Fourth quarter net interest income totaled $522.5 million, a 10% increase from the third quarter, driven by double-digit growth in loans and demand deposit accounts (DDAs) [8] - Trust and securities processing income increased by $4.5 million or 5.1% linked-quarter, driven by new business activities from fund services and private wealth teams [9] - The company experienced a 13% linked-quarter annualized growth in average loans and a 5.6% growth in average deposits [9] Market Data and Key Metrics Changes - The company reported a total net charge-off rate of 13 basis points for the fourth quarter, with total non-performing loans at $145 million, or 37 basis points of loans [10] - The company’s criticized loan levels improved by 9.1% from the prior quarter [10] - Industry-wide non-performing loans for banks reported so far were a median of 55 basis points [10] Company Strategy and Development Direction - The company aims to prioritize organic growth while being open to tuck-in acquisitions that make financial and strategic sense [12][13] - The management emphasized a strong focus on maintaining asset quality metrics while expanding in newly acquired markets [12][15] - The company is cautious about M&A transactions that could dilute its culture or business model, particularly avoiding deals that would approach the $100 billion mark [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to continue delivering strong performance and profitability, citing a robust pipeline for loan growth [10][12] - The company expects to achieve positive operating leverage in 2026, despite anticipated lower contractual purchase accounting accretion benefits [21] - Management remains optimistic about the growth opportunities in newly acquired markets and the overall economic environment [15] Other Important Information - The effective tax rate for the fourth quarter was 20.3%, with an expectation of 20%-22% for 2026 [25][26] - The company reported a common equity Tier One ratio of 10.96%, a 26 basis point increase from September [12] Q&A Session Summary Question: Can you provide more detail on the drivers of commercial loan growth in the quarter? - Management noted strong performance across all markets and verticals, with 50% of growth coming from new customer acquisition and market share gains [33][34] Question: Can you discuss the contributions from Heartland to growth? - Management indicated that it is still early to assess Heartland's contributions, but positive signs are expected as integration progresses [35] Question: Can you touch on the NPL increase and timeline for working through acquired credits? - Management clarified that the increase was specific to one fully secured credit and expressed confidence in maintaining historical charge-off norms [36][37] Question: How should we think about average DDA growth quarter over quarter? - Management anticipates a slight pickup in DDA growth, driven by new client acquisitions and seasonal trends [44] Question: Are all cost savings realized, and where are incremental dollars being invested? - Management confirmed that all identified cost savings have been realized and emphasized disciplined investment in sales activities [56][58] Question: What is the expected growth rate for the trust and securities processing line? - Management highlighted strong momentum in the fund services business, particularly in the alternative investment space, but did not provide specific guidance [60] Question: How do you view the loan-to-deposit ratio? - Management stated that the focus is on building a strong deposit base, allowing loan growth to follow naturally without a specific target for the loan-to-deposit ratio [119][120]

Financial Data and Key Metrics Changes - The company reported a return on average assets of 1.20%, up from 1.04% in the third quarter, and a return on average common equity of 11.27%, an increase from 10.14% [7] - The efficiency ratio improved to 55.5 from 58.1 in the third quarter and 61.8 a year ago [7] - Reported net income for the fourth quarter was $209.5 million or $2.74 per share, a 16.1% increase from the third quarter [7] - For the full year, net income was $684.6 million or $9.29 per share [8] Business Line Data and Key Metrics Changes - Fourth quarter net interest income totaled $522.5 million, a 10% increase from the third quarter, driven by double-digit growth in loans and demand deposit accounts (DDAs) [8] - Trust and securities processing income increased by $4.5 million or 5.1% linked-quarter, driven by new business activities from fund services and private wealth teams [9] - Total non-interest income was impacted by market-related variances, with a decrease in fee income of $11.2 million from the third quarter [18] Market Data and Key Metrics Changes - The company experienced a 13% linked-quarter annualized growth in average loans and a 5.6% growth in average deposits [9] - Quarterly top-line loan production reached $2.6 billion, with commercial and industrial (C&I) loans showing a 27% annualized growth over the third-quarter average balances [9] - Total non-performing loans were $145 million, or 37 basis points of loans, with total criticized loan levels improving by 9.1% from the prior quarter [10] Company Strategy and Development Direction - The company aims to prioritize organic growth, stating that it does not need to pursue mergers and acquisitions (M&A) to generate assets [12] - The management expressed confidence in capitalizing on opportunities in newly acquired markets and expanding in existing markets [13] - The company is cautious about M&A, indicating a preference for tuck-in acquisitions that make financial and strategic sense [14][15] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about maintaining strong asset quality metrics and expects trends of loan growth to continue [10][13] - The company anticipates achieving positive operating leverage in 2026, despite expected lower contractual purchase accounting accretion benefits [21] - The effective tax rate for the fourth quarter was 20.3%, with expectations for 2026 to be between 20%-22% [25][26] Other Important Information - The company reported $39.7 million in acquisition expenses for the fourth quarter, compared to $35.6 million in the previous quarter [8] - The net interest margin for the fourth quarter was reported at 3.29%, with a core margin of 2.96%, increasing 18 basis points sequentially [21][22] - The company has a common equity Tier One ratio of 10.96%, a 26 basis point increase from September [12] Q&A Session Summary Question: Can you provide more detail on the drivers of commercial loan growth in the quarter? - Management noted strong performance across all markets and verticals, with 50% of growth coming from new customer acquisition and market share gains [33] Question: Can you touch on the NPL increase and the timeline for working through acquired credits? - Management indicated the increase was specific to one fully secured credit and expressed confidence in maintaining historical charge-off norms [36] Question: How should we think about average DDA growth quarter over quarter? - Management expects a slight pickup in DDA growth, driven by new client acquisitions and seasonal trends [44] Question: Can you discuss potential revenue synergies from the Heartland acquisition? - Management highlighted opportunities in mortgage products, credit cards, and corporate trust business as key areas for revenue synergies [79] Question: What are the lessons learned from the Heartland acquisition? - Management emphasized the importance of culture and maintaining control over the integration process, noting the transaction went exceptionally well [96][101]

Financial Data and Key Metrics Changes - The company reported a return on average assets of 1.20%, up from 1.04% in the third quarter, and a return on average common equity of 11.27%, an increase from 10.14% [5] - The efficiency ratio improved to 55.5 from 58.1 in the third quarter and 61.8 a year ago [5] - Reported net income for the fourth quarter was $209.5 million or $2.74 per share, a 16.1% increase from the third quarter [5] - For the full year, net income was $684.6 million or $9.29 per share [6] Business Line Data and Key Metrics Changes - Fourth quarter net interest income totaled $522.5 million, a 10% increase from the third quarter, driven by double-digit growth in loans and demand deposit accounts (DDAs) [6] - Trust and securities processing income increased by $4.5 million or 5.1% linked-quarter, driven by new business activities from fund services and private wealth teams [7] - The company experienced a 13% linked-quarter annualized growth in average loans and a 5.6% growth in average deposits [7] Market Data and Key Metrics Changes - The company reported a 3.9% rate of net payoffs and pay downs as a percentage of total loans [9] - Total non-performing loans were $145 million, or 37 basis points of loans, with total criticized loan levels improving by 9.1% from the prior quarter [9] - Industry-wide non-performing loans for banks reported so far were a median of 55 basis points [9] Company Strategy and Development Direction - The company aims to focus on organic growth as its top capital priority, while also being open to tuck-in acquisitions that make financial and strategic sense [12] - The management emphasized the importance of maintaining strong asset quality metrics while continuing to build capital [11] - The company is excited about opportunities in newly acquired markets and plans to capitalize on these in 2026 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate assets organically and take market share ahead of peers [11] - The company expects trends of loan growth to continue, especially in newly acquired markets [12] - Management remains cautious about M&A, focusing instead on organic growth and maintaining the company's culture and business model [12] Other Important Information - The effective tax rate was 20.3% for the fourth quarter and 19.7% for the full year, with expectations for 2026 to be between 20%-22% [24][25] - The company reported a net interest margin of 3.29%, with a core margin of 2.96%, increasing 18 basis points sequentially [20] Q&A Session Summary Question: Can you provide more detail on the drivers of commercial loan growth in the quarter? - Management noted that growth comes from new customer acquisition and market share gains, with strong performance across all markets and verticals [31] Question: Can you touch on the NPL increase and timeline for working through acquired credits? - Management indicated that the increase was specific to one fully secured credit and expressed confidence in maintaining historical charge-off norms [36] Question: How should we think about average DDA growth quarter over quarter? - Management expects a slight pickup in DDA growth, driven by new client acquisitions and seasonal inflows [42] Question: Are all cost savings realized, and where are incremental dollars being invested? - Management confirmed that all identified cost savings have been realized and emphasized disciplined investment in sales activities [55] Question: Can you discuss potential revenue synergies from the Heartland acquisition? - Management highlighted opportunities in mortgage products, credit cards, and corporate trust business as key areas for revenue synergies [78] Question: What are the expectations for loan and deposit growth? - Management stated that they focus on building a strong deposit base and expect exceptional growth in both loans and deposits without specific guidance on loan-to-deposit ratios [117]

Financial Data and Key Metrics Changes - Reported net income available to common shareholders was $180.4 million, including $35.6 million of acquisition expenses, compared to $13.5 million in the second quarter. Excluding these and other nonrecurring items, net operating income for the third quarter was $206.5 million or $2.70 per share [6][11] - Net interest income totaled $475 million, an increase of $8 million or 1.7% from the second quarter, driven by organic growth in average loans and earning assets [6][12] - Fee income increased by 12.4% on a linked quarter basis, excluding market valuation changes on equity positions [6][12] Business Line Data and Key Metrics Changes - Investment banking saw nearly a 14% increase in activity from the second quarter, driven by agency and mortgage-backed trading [6][14] - Quarterly top line loan production surpassed $2 billion for the first time, with strong organic growth momentum [7][8] - CNI (Commercial and Industrial) loans were the strongest contributor for the quarter, with more than 14% annualized growth over the second quarter average balances [7][9] Market Data and Key Metrics Changes - Loan growth outpaced peer banks, with UMB reporting an 8% annualized increase in average loan balances compared to a median of 5.5% among peer banks [8][10] - Total nonperforming loans were $132 million or 35 basis points of loans, with a slight increase attributed to two legacy HTLF loans [10][9] Company Strategy and Development Direction - The company successfully completed the acquisition of Heartland Financial, achieving full systems and brand conversion of all HTLF locations [5][6] - UMB aims to augment loan growth with acquired deposits through M&A, focusing on high-quality partnerships rather than immediate acquisitions [48][49] - The company is optimistic about the opportunities in various markets, including California and Wisconsin, and plans to leverage its strong credit culture to enhance loan production [44][46] Management's Comments on Operating Environment and Future Outlook - Management expects charge-off levels to remain near or below historical averages for the remainder of the year, despite a slight increase in nonperforming loans [10][28] - The effective tax rate for the third quarter was 20.4%, with expectations for the full year to be between 19% and 22% [18][12] - The company anticipates stable core margin in the fourth quarter, with expectations for continued growth in fee income and loan production [16][100] Other Important Information - The Board of Directors declared a quarterly dividend of $0.43 per share, representing a 7.5% increase from the prior quarter [11][12] - The company reported a common equity Tier 1 ratio of 10.70%, a 31 basis point increase from June 30, moving closer to pre-acquisition goals [10][11] Q&A Session Summary Question: Can you dissect the production trends and their sustainability? - Management indicated that loan growth is driven by both UMB and Heartland, with a focus on local penetration and execution opportunities [22][23] Question: Any updates on credit quality? - Management expressed confidence in handling new Heartland credits, with reserves already in place for identified issues [25][26] Question: What is the outlook for expenses in the first quarter of 2026? - Management expects to realize cost savings from the Heartland acquisition by the end of the first quarter, with some inflationary pressures anticipated [32][33] Question: How is the integration of HTLF lenders progressing? - Management noted that the integration has been smooth, with former HTLF officers benefiting from enhanced support and quicker turnaround times [36][38] Question: What opportunities exist for new loan production? - Management highlighted significant opportunities across various regions, particularly in California and Wisconsin, with low penetration rates [44][46] Question: How does the company view M&A opportunities? - Management stated that while they are open to M&A, they prioritize maintaining profitability and focus on high-quality partnerships [49][95] Question: What is the outlook for the institutional banking division? - Management reported strong growth in trust and securities processing fees, driven by market share gains and partnerships in the private investment space [68][70]

Financial Data and Key Metrics Changes - The company reported a 26.1% year-over-year increase in net income for 2024, indicating strong balance sheet growth and solid capital metrics [2][3]. Business Line Data and Key Metrics Changes - The acquisition of Heartland Financial, which closed on January 31, 2024, is noted as the largest in the company's history, aimed at expanding core services and capabilities [2][3]. Market Data and Key Metrics Changes - No specific market data or key metrics changes were provided in the meeting [2][3]. Company Strategy and Development Direction - The company is focused on integrating Heartland Financial to create a seamless experience for customers and expand its services into new communities [2][3]. Management's Comments on Operating Environment and Future Outlook - Management described 2024 as a transformational year and expressed optimism about the company's growth trajectory following the acquisition [2][3]. Other Important Information - The company published its 2024 corporate citizenship report, highlighting ongoing initiatives to meet the needs of associates and communities [4]. Q&A Session Summary Question: Are there any questions from shareholders? - There were no questions from shareholders during the meeting [17].