Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☒ Yes ☐ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐ Yes ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issues its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive oﬃcers during the relevant recovery period pursuant to §240.10D-1(b).☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No

As of June 30, ~~2021,~~2022, the aggregate market value of common stock outstanding held by nonaffiliates of the registrant was approximately ~~$4,068,899,227~~$3,765,571,733 based on the closing price of the registrant’s common stock on the NASDAQ Global Select Market on that date.

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.

Portions of the Company's Definitive Proxy Statement on Schedule 14A (the “Proxy Statement”) to be delivered to shareholders in connection with the Annual Meeting of Shareholders to be held on April 26, ~~2022,~~2023, are incorporated by reference into Part III of this Annual Report on Form 10-K.

UMB Financial Corporation (together with its consolidated subsidiaries, unless the context requires otherwise, the Company) is a financial holding company that is headquartered in Kansas City, Missouri. The Company provides banking services and asset servicing to its customers in the United States and around the globe.

The Company was organized as a corporation under Missouri law in 1967 and is registered as a bank holding company under the Bank Holding Company Act of 1956, as amended (the BHCA) and a financial holding company under the Gramm-Leach-Bliley Act of 1999, as amended (the GLBA). The Company currently owns all of the outstanding stock of one national bank and several nonbank subsidiaries.

The Company’s national bank, UMB Bank, National Association (the Bank), has its principal office in Missouri and also has branches in Arizona, Colorado, Illinois, Kansas, Nebraska, Oklahoma, and Texas. The Bank offers a full complement of banking products and other services to commercial, retail, government, and correspondent-bank customers, including a wide range of asset-management, trust, bankcard, and cash-management services.

The Company also owns UMB Fund Services, Inc. (UMBFS), which is a significant nonbank subsidiary that has offices in Milwaukee, Wisconsin, Chadds Ford, Pennsylvania, and Ogden, Utah. UMBFS provides fund accounting, transfer agency, and other services to mutual fund and alternative-investment groups.

Prior to March 31, 2021, the Company also owned Prairie Capital Management, LLC (PCM), which provided investment management services and alternative investments in hedge funds and private equity funds. The Company sold its membership interests in PCM during the first quarter of 2021.

~~During~~For over two years, the ~~first quarter of 2020, the global economy began experiencing a downturn related to~~Company has experienced the impacts of the COVID-19 global pandemic (the COVID-19 pandemic, or the pandemic). Such impacts have included significant volatility in the global stock and fixed income markets, ~~a 150-basis-point reduction in the target federal funds rate,~~ the enactment of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the American Rescue Plan Act of 2021, both authorizing the Paycheck Protection Program (PPP) administered by the Small Business Administration, and a variety of rulings from the Company’s banking regulators.

The Company continues to actively monitor developments related to COVID-19 and its impact to its business, customers, employees, counterparties, vendors, and service providers. The COVID-19 pandemic ~~and stay-at-home and similar mandates have~~has necessitated certain actions related to the way the Company operates its ~~business, including transitioning most of its workforce off-site or to work-from-home to help mitigate health risks.~~business. The Company is ~~also~~ carefully monitoring the activities of its vendors and other third-party service providers to mitigate the risks associated with any potential service disruptions. The length of time the Company may be required to operate under such circumstances and future degrees of disruption remain uncertain. While the Company has not experienced material adverse disruptions to its internal operations due to the pandemic, it continues to review evolving risks and developments.

See further details surrounding the Company’s response to the COVID-19 pandemic under “Human Capital” below and within Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The Company’s products and services are grouped into three segments: Commercial Banking, Institutional Banking, and Personal Banking.

These segments and their financial results are described in detail in (i) the section of Management’s Discussion and Analysis of Financial Condition and Results of Operations entitled Business Segments, which can be found in Part II, Item 7 of this report and (ii) Note 12, “Business Segment Reporting,” in the Notes to the Consolidated Financial Statements, which can be found in Part II, Item 8 of this report.

The Company faces intense competition in each of its business segments and in all of the markets and geographic regions that the Company serves. Competition comes from both traditional and non-traditional financial-services providers, including banks, savings associations, finance companies, investment advisors, asset managers, mutual funds, private-equity firms, hedge funds, brokerage firms, mortgage-banking companies, credit-card companies, insurance companies, trust companies, securities processing companies, and credit unions. Increasingly, financial-technology (fintech) companies are partnering with financial-services providers to compete with the Company for lending, payments, and other business. Many of the Company’s competitors are not subject to the same kind or degree of supervision and regulation as the Company.

Competition is based on a number of factors. Banking customers are generally influenced by convenience, interest rates and pricing, personal experience, quality and availability of products and other services, lending limits, transaction execution, and reputation. Investment advisory services compete primarily on returns, expenses, third-party ratings, and the reputation and performance of managers. Asset servicing competes primarily on price, quality of services, and reputation. The Company and its competitors are all impacted to varying degrees by the overall economy and health of the financial markets.

The Company’s ability to successfully compete in its chosen markets and regions also depends on its ability to attract, retain, and motivate talented employees, to invest in technology and infrastructure, and to innovate, all while effectively managing its expenses. The Company expects that competition will likely intensify in the future.

The Company is dedicated to creating the Unparalleled Customer Experience, and its associates are critical to achieving this mission. As part of the Company’s efforts to recruit and retain top talent, it strives to offer competitive compensation and benefits programs, while fostering a culture rooted in inclusion of a diverse mix of associates who are empowered to be part of something more. The Company believes its associates, customers, and communities mutually benefit by its focus on providing opportunities for its associates to make an impact at work and in its communities. On a full-time equivalent basis at December 31, ~~2021,~~2022, the Company and its subsidiaries employed ~~3,529~~3,770 associates across the country.

Compensation and Benefits Program. The Company’s compensation program is designed to allow it to attract, reward, and retain talented individuals who contribute significant value to the organization. The Company’s compensation programs reward performance, reserving the highest rewards for the highest performers. The Company’s incentive plans are intended to promote the interests of the Company and its shareholders by providing associates with incentives and rewards to encourage them to continue in service of the Company. The Company provides employees with compensation packages that include base salary, annual short-term incentive bonuses, and long-term equity awards tied to management, growth, and protection of the business of the Company. In addition to cash and equity compensation, the Company offers a robust benefits program that includes medical, dental, and vision insurance, health savings accounts and a variety of insurance options, including pet, life, and long-term care. Additionally, the Company also offers associates benefits including paid time off, paid volunteer time off, paid parental leave, adoption assistance, a 401(k) plan, as well as profit sharing and an employee stock ownership plan. The Company strives to engage and encourage associates to act and take personal responsibility for improving their health and well-being, as well as the health and well-being of their families. To assist associates with their goals, the Company offers wellness incentives and wellness coaches for strategic wellness support strategies.

Diversity and Inclusion. The Company believes that an equitable and inclusive environment with diverse teams produces more creative solutions, results in better products and services, and is crucial to its efforts to attract and retain key talent. The Company’s talent acquisition team focuses on building recruitment marketing strategies that are designed to identify and attract diverse associates. The ~~Company targets a diverse panel approach which encourages hiring managers to engage a diverse panel of candidates before making hiring decisions. The~~ Company’s business resource groups (BRGs) also play a vital role in deepening the recruitment pipeline of diverse talent and refer candidates to the Company on a regular basis. BRGs are structured to engage associates who share common interests, including associates from traditionally underrepresented groups. Nearly 20% of the Company’s associates participate in one or more BRGs.

Community Involvement. For more than a century, the Company has maintained a commitment to the prosperity of each community it serves. In addition to providing financial products built for the needs of its customers, the Company builds strong community partnerships through associate volunteerism, associate financial

~~customers, the Company uses associate volunteerism, associate financial~~ giving, and corporate ~~philanthropy to build strong community partnerships.~~philanthropy. The Company encourages associates to give back to their local communities through various programs and initiatives, including paid volunteer time off and matching charitable gift programs.

~~COVID-19.~~ The Company’s response to the COVID-19 pandemic is rooted in supporting its associates while focusing on the safety and security of associates, customers, and vendors. Beginning mid-March 2020, more than 85% of associates shifted to a remote work environment. The Company instituted social distancing signage and reconfigured spaces to limit the risk of exposure within its locations. This allowed for additional associates to return on-site if they chose to, which increased on-site associates to approximately 35% as of December 31, 2021. In December 2021, the Company announced plans that create increased flexibility in work location via hybrid work schedules. Associates that have worked remotely due to the pandemic will return to corporate offices and branches in a phased approach during the first half of 2022.

For more information on the Company’s diversity and inclusion and community involvement initiatives, please see its Corporate Citizenship Report available at www.umb.com/~~corporatecitizenship~~.corporatecitizenship. Information on the Company’s website is not incorporated by reference into this report and should not be considered part of this document.

In addition to the impact of general economic conditions, the Company’s business, results of operations, financial condition, capital, liquidity, and prospects are significantly affected by government monetary and fiscal policies that are announced or implemented in the United States and abroad.

A sizeable influence is exerted, in particular, by the policies of the Board of Governors of the Federal Reserve System (the FRB), which influences monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates. Among the FRB’s policy tools are (1) open market operations (that is, purchases or sales of securities in the open market to adjust the supply of reserve balances in order to achieve targeted federal funds rates or to put pressure on longer-term interest rates in order to achieve more desirable levels of economic activity and job creation), (2) the discount rate charged on loans by the Federal Reserve Banks, (3) the level of reserves required to be held by depository institutions against specified deposit liabilities, (4) the interest paid or charged on balances maintained with the Federal Reserve Banks by depository institutions, including balances used to satisfy their reserve requirements, and (5) other deposit and loan facilities.

The FRB and its policies have a substantial impact on the availability and demand for loans and deposits, the rates, and other aspects of pricing for loans and deposits, and the conditions in equity, fixed income, currency, and other markets in which the Company operates. Policies announced or implemented by other central banks around the world have a meaningful effect as well and sometimes may be coordinated with those of the FRB.

Tax and other fiscal policies, moreover, impact not only general economic conditions but also give rise to incentives or disincentives that affect how the Company and its customers prioritize objectives, operate businesses, and deploy resources.

The Company is subject to regulatory frameworks in the United States at federal, State, and local levels. In addition, the Company is subject to the direct supervision of various government authorities charged with overseeing the kinds of financial activities conducted by its business segments.

This section summarizes certain provisions of the principal laws and regulations that apply to the Company. The descriptions, however, are not complete and are qualified in their entirety by the full text and judicial or administrative interpretations of those laws and regulations and other laws and regulations that affect the Company.

The Company is a bank holding company under the BHCA and a financial holding company under the GLBA. As a result, the Company—including all of its businesses and operations—is subject to the regulation, supervision, and examination of the FRB and to restrictions on permissible activities. This framework of regulation, supervision, and examination is intended primarily for the protection and benefit of depositors and other customers of the Bank, the Deposit Insurance Fund (the DIF) of the Federal Deposit Insurance Corporation (the FDIC), the banking and

financial systems as a whole, and the broader economy, not for the protection or benefit of the Company’s shareholders or its non-deposit creditors.

Many of the Company’s subsidiaries are also subject to separate or related forms of regulation, supervision, and examination, including: (1) the Bank, by the Office of the Comptroller of the Currency (the OCC) under the National Banking Acts, the FDIC under the Federal Deposit Insurance Act (the FDIA), and the Consumer Financial Protection Bureau (the CFPB) under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act); (2) UMBFS, UMB Distribution Services, LLC, and UMB Financial Services, Inc., by the Securities and Exchange Commission (the SEC) and State regulatory authorities under federal and State securities laws, and UMB

Distribution Services, LLC and UMB Financial Services, Inc., by the Financial Industry Regulatory Authority (FINRA); and (3) UMB Insurance, Inc., by State regulatory authorities under applicable State insurance laws. These regulatory schemes, like those overseen by the FRB, are designed to protect public or private interests that often are not aligned with those of the Company’s shareholders or non-deposit creditors.

The FRB possesses extensive authorities and powers to regulate the conduct of the Company’s businesses and operations. If the FRB were to take the position that the Company or any of its subsidiaries have violated any law or commitment or engaged in any unsafe or unsound practice, formal or informal corrective or enforcement actions could be taken by the FRB against the Company, its subsidiaries, and institution-affiliated parties (such as directors, officers, and agents). These enforcement actions could include an imposition of civil monetary penalties and could directly affect not only the Company, its subsidiaries, and institution-affiliated parties but also the Company’s counterparties, shareholders, and creditors and its commitments, arrangements, or other dealings with them. The OCC has similarly expansive authorities and powers over the Bank and its subsidiaries, as does the CFPB over matters involving consumer financial laws. The SEC, FINRA, and other domestic or foreign government authorities also have an array of means at their disposal to regulate and enforce matters within their jurisdiction that could impact the Company’s businesses and operations.

Under the BHCA, bank holding companies and their subsidiaries are generally limited to the business of banking and to closely related activities that are incidental to banking.

As a bank holding company that has elected to become a financial holding company under the GLBA, the Company is also able—directly or indirectly through its subsidiaries—to engage in activities that are financial in nature, that are incidental to a financial activity, or that are complementary to a financial activity and do not pose a substantial risk to the safety or soundness of depository institutions or the financial system generally. Activities that are financial in nature include: (1) underwriting, dealing in, or making a market in securities, (2) providing financial, investment, or economic advisory services, (3) underwriting insurance, and (4) merchant banking.

The Company’s ability to directly or indirectly engage in these banking and financial activities, however, is subject to conditions and other limits imposed by law or the FRB and, in some cases, requires the approval of the FRB or other government authorities. These conditions or other limits may arise due to the particular type of activity or, in other cases, may apply to the Company’s business more generally. Examples of the former are the substantial restrictions on the timing, amount, form, substance, interconnectedness, and management of the Company’s merchant banking investments. An example of the latter is a condition that, in order for the Company to engage in broader financial activities, its depository institutions must remain “well capitalized” and “well managed” under applicable banking laws and must receive at least a “satisfactory” rating under the Community Reinvestment Act (CRA).

Under amendments to the BHCA promulgated by the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 and the Dodd-Frank Act, the Company may acquire banks outside of its home State of Missouri, subject to specified limits and may establish new branches in other States to the same extent as banks chartered in those States. Under the BHCA, however, the Company must procure the prior approval of the FRB and possibly other government authorities to directly or indirectly acquire ownership or control of five percent or more of any class of voting securities of, or substantially all of the assets of, an unaffiliated bank, savings association, or bank holding company. In deciding whether to approve any acquisition or branch, the FRB, the OCC, and other government authorities will consider public or private interests that may not be aligned with those of the Company’s shareholders or non-deposit creditors. The FRB also has the power to require the Company to divest any depository institution that cannot maintain its “well capitalized” or “well managed” status.

The FRB maintains a targeted policy that requires a bank holding company to inform and consult with the staff of the FRB sufficiently in advance of (1) declaring and paying a dividend that could raise safety and soundness concerns (for example, a dividend that exceeds earnings in the period for which the dividend is being paid), (2) redeeming or repurchasing regulatory capital instruments when the holding company is experiencing financial weaknesses, or (3) redeeming or repurchasing common stock or perpetual preferred stock that would result in a net reduction as of the end of the quarter in the amount of those equity instruments outstanding compared with the beginning of the quarter in which the redemption or repurchase occurred.

Requirements Affecting the Relationships among the Company, Its Subsidiaries, and Other Affiliates

The Company is a legal entity separate and distinct from the Bank, UMBFS, and its other subsidiaries but receives the vast majority of its revenue in the form of dividends from those subsidiaries. Without the approval of the OCC, however, dividends payable by the Bank in any calendar year may not exceed the lesser of (1) the current year’s net income combined with the retained net income of the two preceding years and (2) undivided profits. In addition, under the Basel III capital-adequacy standards described below under the heading “Capital-Adequacy Standards,” the Bank is currently required to maintain a capital conservation buffer in excess of its minimum risk-based capital ratios and will be restricted in declaring and paying dividends whenever the buffer is breached. The authorities and powers of the FRB, the OCC, and other government authorities to prevent any unsafe or unsound practice also could be employed to further limit the dividends that the Bank or the Company’s other subsidiaries may declare and pay to the Company.

The Dodd-Frank Act requires a bank holding company like the Company to serve as a source of financial strength for its depository-institution subsidiaries and to commit resources to support those subsidiaries in circumstances when the Company might not otherwise elect to do so. The functional regulator of any nonbank subsidiary of the Company, however, may prevent that subsidiary from directly or indirectly contributing its financial support, and if that were to preclude the Company from serving as an adequate source of financial strength, the FRB may instead require the divestiture of depository-institution subsidiaries and impose operating restrictions pending such a divestiture.

A number of laws, principally Sections 23A and 23B of the Federal Reserve Act (the FRA), and the FRB’s Regulation W, also exist to prevent the Company and its nonbank subsidiaries from taking improper advantage of the benefits afforded to the Bank as a depository institution, including its access to federal deposit insurance and the discount window. These laws generally require the Bank and its subsidiaries to deal with the Company and its nonbank subsidiaries only on market terms and, in addition, impose restrictions on the Bank and its subsidiaries in directly or indirectly extending credit to or engaging in other covered transactions with the Company or its nonbank subsidiaries. The Dodd-Frank Act extended the restrictions to derivatives and securities lending transactions and expanded the restrictions for transactions involving hedge funds or private-equity funds that are owned or sponsored by the Company or its nonbank subsidiaries.

In addition, under the Volcker Rule, the Company is subject to extensive limits on proprietary trading and on owning or sponsoring hedge funds and private-equity funds. The limits on proprietary trading are largely directed toward purchases or sales of financial instruments by a banking entity as principal primarily for the purpose of short-term resale, a benefit from actual or expected short-term price movements, or the realization of short-term arbitrage profits. The limits on owning or sponsoring hedge funds and private-equity funds are designed to ensure that banking entities generally maintain only small positions in managed or advised funds and are not exposed to significant losses arising directly or indirectly from them. The Volcker Rule also provides for increased capital charges, quantitative limits, rigorous compliance programs, and other restrictions on permitted proprietary trading and fund activities, including a prohibition on transactions with a covered fund that would constitute a covered transaction under Sections 23A and 23B of the FRA.

The Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) was enacted in May 2018, amending requirements previously established in the Dodd-Frank Act, including stress testing and enhanced prudential standards. Bank holding companies with assets of less than $100 billion, including the Company, are no longer subject to the requirement to conduct forward-looking, company-run stress testing, including publishing a summary of results. The Company continues to run internal stress tests as a component of its comprehensive risk management and capital planning process. In addition, the EGRRCPA increased the statutory asset threshold above which the Federal Reserve is required to apply enhanced prudential standards from $50 billion to $250 billion (subject to certain discretion by the Federal Reserve to apply any enhanced prudential standard requirement to any

bank holding company with between $100 billion and $250 billion in total consolidated assets that would otherwise be exempt under EGRRCPA). The Company remains exempt from applying the enhanced prudential standards.

The FRB and the OCC have adopted risk-based capital and leverage guidelines that require the capital-to-assets ratios of bank holding companies and national banks, respectively, to meet specified minimum standards.

The risk-based capital ratios are based on a banking organization’s risk-weighted asset amounts (RWAs), which are generally determined under the standardized approach applicable to the Company and the Bank by (1) assigning on-balance-sheet exposures to broad risk-weight categories according to the counterparty or, if relevant, the guarantor or collateral (with higher risk weights assigned to categories of exposures perceived as representing greater risk) and (2) multiplying off-balance-sheet exposures by specified credit conversion factors to calculate credit equivalent amounts and assigning those credit equivalent amounts to the relevant risk-weight categories. The leverage ratio, in contrast, is based on an institution’s average on-balance-sheet exposures alone.

The capital ratios for the Company and the Bank as of December 31, ~~2021,~~2022, are set forth below:

Tier 1

Leverage Ratio

Tier 1

Risk-Based

Capital Ratio

Common Equity Tier 1

Capital Ratio

Total

Risk-Based Capital Ratio

Tier 1

Leverage Ratio

Tier 1

Risk-Based

Capital Ratio

Common Equity Tier 1

Capital Ratio

Total

Risk-Based Capital Ratio

UMB Financial Corporation

7.61

12.05

13.88

8.43

10.62

12.50

UMB Bank, n.a.

7.26

11.53

12.24

8.46

10.88

11.47

These capital-to-assets ratios also play a central role in prompt corrective action (PCA), which is an enforcement framework used by the federal banking agencies to constrain the activities of banking organizations based on their levels of regulatory capital. Five categories have been established using thresholds for the total risk-based capital ratio, the tier 1 risk-based capital ratio, the common-equity tier 1 risk-based capital ratio, and the leverage ratio: (1) well capitalized, (2) adequately capitalized, (3) undercapitalized, (4) significantly undercapitalized, and (5) critically undercapitalized. While bank holding companies are not subject to the PCA framework, the FRB is empowered to compel a holding company to take measures—such as the execution of financial or performance guarantees—when prompt corrective action is required in connection with one of its depository-institution subsidiaries. At December 31, ~~2021,~~2022, the Bank was categorized as well capitalized under the PCA framework.

Basel III, including revisions to the global Basel III capital framework (commonly known as Basel IV), includes a number of more rigorous provisions applicable only to banking organizations that are larger or more internationally active than the Company and the Bank. These include, for example, a supplementary leverage ratio incorporating off-balance-sheet exposures, a liquidity coverage ratio, and a net stable funding ratio. These standards may be informally applied or considered by the FRB and the OCC in their regulation, supervision, and examination of the Company and the Bank.

The deposits of the Bank are insured by the FDIC in the standard insurance amount of $250 thousand per depositor for each account ownership category. This insurance is funded through assessments on the Bank and other insured depository institutions. Under the Dodd-Frank Act, each institution’s assessment base is determined based on its average consolidated total assets less average tangible equity, and there is a scorecard method for calculating assessments that combines CAMELS (an acronym that refers to the five components of a bank’s condition that are addressed: capital adequacy, asset quality, management, earnings, and liquidity) ratings and specified forward-looking financial measures to determine each institution’s risk to the DIF. The Dodd-Frank Act also requires the FDIC, in setting assessments, to offset the effect of increasing its reserve for the DIF on institutions with consolidated assets of less than $10 billion. The result of this revised approach to deposit-insurance assessments is generally an increase in costs, on an absolute or relative basis, for institutions with consolidated assets of $10 billion or more.

If an insured depository institution such as the Bank were to become insolvent or if other specified events were to occur relating to its financial condition or the propriety of its actions, the FDIC may be appointed as conservator or receiver for the institution. In that capacity, the FDIC would have the power to (1) transfer assets and liabilities of the institution to another person or entity without the approval of the institution’s creditors, (2) require

that its claims process be followed and to enforce statutory or other limits on damages claimed by the institution’s creditors, (3) enforce the institution’s contracts or leases according to their terms, (4) repudiate or disaffirm the institution’s contracts or leases, (5) seek to reclaim, recover, or recharacterize transfers of the institution’s assets or to exercise control over assets in which the institution may claim an interest, (6) enforce statutory or other injunctions, and (7) exercise a wide range of other rights, powers, and authorities, including those that could impair the rights and interests of all or some of the institution’s creditors. In addition, the administrative expenses of the conservator or receiver could be afforded priority over all or some of the claims of the institution’s creditors, and

under the FDIA, the claims of depositors (including the FDIC as subrogee of depositors) would enjoy priority over the claims of the institution’s unsecured creditors.

The FDIA also provides that an insured depository institution can be held liable for any loss incurred or expected to be incurred by the FDIC in connection with another commonly controlled insured depository institution that is in default or in danger of default. This cross-guarantee liability is generally superior in right of payment to claims of the institution’s holding company and its affiliates.

As a public company, the Company is subject to the Securities Act of 1933, as amended (the Securities Act), the Securities Exchange Act of 1934, as amended (the Exchange Act), the Sarbanes-Oxley Act of 2002, and other federal and State securities laws. In addition, because the Company’s common stock is listed with The NASDAQ Stock Market LLC (NASDAQ), the Company is subject to the listing rules of that exchange.

The Currency and Foreign Transactions Reporting Act of 1970 (commonly known as the Bank Secrecy Act), the USA PATRIOT Act of 2001, and related laws require all financial institutions, including banks and broker-dealers, to establish a risk-based system of internal controls reasonably designed to prevent money laundering and the financing of terrorism. These laws include a variety of recordkeeping and reporting requirements (such as currency and suspicious activity reporting) as well as know-your-customer and due-diligence rules.

Under the CRA, the Bank has a continuing and affirmative obligation to help meet the credit needs of its local communities—including low- and moderate-income neighborhoods—consistent with safe and sound banking practices. The CRA does not create specific lending programs but does establish the framework and criteria by which the OCC regularly assesses the Bank’s record in meeting these credit needs. The Bank’s ratings under the CRA are taken into account by the FRB and the OCC when considering merger or other specified applications that the Company or the Bank may submit from time to time.

The Bank is subject as well to a vast array of consumer-protection laws, such as qualified-mortgage and other mortgage-related rules under the jurisdiction of the CFPB. Lending limits, restrictions on tying arrangements, limits on permissible interest-rate charges, and other laws governing the conduct of banking or fiduciary activities are also applicable to the Bank. In addition, the GLBA imposes on the Company and its subsidiaries a number of obligations relating to financial privacy.

~~The information required by Guide 3, “Statistical Disclosure by Bank Holding Companies,” has been included in Part II, Items 7 and 7A of this report.~~

Executive Officers of the Registrant. The following are the executive officers of the Company, each of whom is appointed annually, and there are no arrangements or understandings between any of the executive officers and any other person pursuant to which such person was elected as an executive officer.

The Company makes available free of charge on its website at www.umb.com/investor, its annual report on Form 10-K, quarterly reports on Form 10-Q, proxy statements, current reports on Form 8-K and amendments to such reports, as soon as reasonably practicable after it electronically files or furnishes such material with or to the SEC. Information on the Company’s website is not incorporated by reference into this report and should not be considered part of this document. These reports can also be found on the SEC website at www.sec.gov.

Financial-services companies routinely encounter and address risks and uncertainties. In the following paragraphs, the Company describes some of the principal risks and uncertainties that could adversely affect its business, results of operations, financial condition (including capital and liquidity), or prospects or the value of or return on an investment in the Company. These risks and uncertainties, however, are not the only ones faced by the Company. Other risks and uncertainties that are not presently known to the Company that it has failed to identify, or that it currently considers immaterial may adversely affect the Company as well. Except where otherwise noted, the risk factors address risks and uncertainties that may affect the Company as well as its subsidiaries. These risk factors should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations (which can be found in Part II, Item 7 of this report) and the Notes to the Consolidated Financial Statements (which can be found in Part II, Item 8 of this report).

The COVID-19 pandemic is affecting the Company and its customers, counterparties, employees, and third-party service providers, and the continued impacts on its business, financial position, results of operations, and prospects could potentially be significant. The spread of COVID-19 over the past two years has created a global public-health crisis that has resulted in widespread volatility and deteriorations in household, business, economic, and market conditions. The extent of the impact of the ongoing COVID-19 pandemic on the Company’s capital, liquidity, and other financial positions and on its business, results of operations, and prospects will depend on a number of evolving factors, including:

The COVID-19 pandemic could cause the Company to experience higher credit losses in its lending portfolio, impairment of its goodwill and other financial assets, reduced demand for its products and services, and other negative impacts on its financial position, results of operations, and prospects. Sustained adverse effects of the COVID-19 pandemic may also prevent the Company from satisfying its minimum regulatory capital ratios and other supervisory requirements, failing to be able to sustain the paying of dividends to its shareholders, or result in downgrades in its credit ratings.

Because of the current expected credit loss (CECL) accounting standard, the Company’s financial results may be negatively affected as soon as weak or deteriorating economic conditions are forecasted and alter its expectations for credit losses. In addition, due to the expansion of the time horizon over which it is required to estimate future credit losses under CECL, the Company may experience increased volatility in its future provisions for credit losses.

The levels of, or changes in, interest rates could affect the Company’s business or performance. The Company’s business, results of operations, and financial condition are highly dependent on net interest income, which is the difference between interest income on earning assets (such as loans and investments) and interest expense on deposits and borrowings. Net interest income is significantly affected by market interest rates, which in turn are influenced by monetary and fiscal policies, general economic conditions, the regulatory environment, competitive pressures, and expectations about future changes in interest rates. The policies and regulations of the federal government, in general, and the FRB, in particular, have a substantial impact on market interest rates. See “Government Monetary and Fiscal Policies” in Part I, Item 1 of this report, which is incorporated by reference herein. Additionally, the Company has a significant number of loans, derivative contracts, borrowings and other financial instruments with attributes that are either directly or indirectly dependent on the London Interbank Offered Rate (LIBOR). In 2017, the U.K. Financial Conduct Authority announced that LIBOR is to be transitioned to alternative rates. U.S. regulatory authorities voiced similar support for phasing out LIBOR. The transition from LIBOR could create considerable costs and additional risk. Certain LIBOR rates will continue to be published until June 30, 2023 for existing LIBOR-indexed financial instruments, however no new LIBOR-indexed financial instruments can be originated after December 31, 2021. The Alternative Reference Rates Committee (ARRC) has proposed that the Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York represents the best alternative to LIBOR for use in derivatives and other financial contracts that are currently indexed to LIBOR. The Company discontinued entering into new LIBOR-indexed financial instruments effective

December 31, 2021. The majority of existing LIBOR-indexed contracts will revert to SOFR. The remainder will be individually negotiated to a mutual preferred replacement index. Since proposed alternative rates are calculated differently, payments under contracts referencing new rates will differ from those referencing LIBOR. Although the Company is currently unable to assess what the ultimate impact of the transition from LIBOR will be, failure to adequately manage the transition could have a material adverse effect on its business, financial condition and results of operations.

The impact of interest rate changes on the Company’s funding costs may differ from some peers given the Company’s concentration of funding from commercial and institutional sources. These deposits, which often include the benefit of other ancillary revenues, are generally more price-sensitive than consumer funding sources. In a rising rate environment, the Company may experience a sharper decline in low-cost funding sources or an increase in cost of deposits due to its customer profile. However, the expectation of higher earning asset growth and the benefit of higher interest rates on our earning assets may help mitigate any impact.

The Company may be adversely affected by policies, regulations, or events that have the effect of altering the difference between long-term and short-term interest rates (commonly known as the yield curve), depressing the interest rates associated with its earning assets to levels near the rates associated with its interest expense, or changing the spreads among different interest-rate indices. In addition, a rapid change in interest rates could result in interest expense increasing faster than interest income because of differences in the maturities of the Company’s assets and liabilities. Further, if laws impacting taxation and interest rates materially change, or if new laws are enacted, certain of the Company’s services and products, including municipal bonds, may be subject to less favorable tax treatment or otherwise adversely impacted. The level of and changes in market interest rates—and, as a result, these risks and uncertainties—are beyond the Company’s control. The dynamics among these risks and uncertainties are also challenging to assess and manage. For example, while the highly accommodative monetary policy currently adopted by the FRB may benefit the Company to some degree by spurring economic activity among

its customers, such a policy may ultimately cause the Company more harm by inhibiting its ability to grow or sustain net interest income.

The Company’s customers and counterparties also may be negatively impacted by the levels of, or changes in, interest rates, which could increase the risk of delinquency or default on obligations to the Company. The levels of, or changes in, interest rates, moreover, may have an adverse effect on the value of the Company’s investment portfolio, which includes long-term municipal bonds with fixed interest rates, and other financial instruments, the return on or demand for loans, the prepayment speed of loans (including, without limitation, the pace of pay-downs expected or forecasted for commercial real estate and construction loans), the cost or availability of deposits or other funding sources, or the purchase or sale of investment securities.

See “Quantitative and Qualitative Disclosures About Market Risk—Interest Rate Risk” in Part II, Item 7A of this report for a discussion of how the Company monitors and manages interest-rate risk.

Weak or deteriorating economic conditions, more liberal origination or underwriting standards, or financial or systemic shocks could increase the Company’s credit risk and adversely affect its lending or other banking businesses and the value of its loans or investment securities. The Company’s business and results of operations depend significantly on general economic conditions. When those conditions are weak or deteriorating in any of the markets or regions where the Company operates, its business or performance could be adversely affected. The Company’s lending and other banking businesses, in particular, are susceptible to weak or deteriorating economic conditions, which could result in reduced loan demand or utilization rates and at the same time increased delinquencies or defaults. These kinds of conditions also could dampen the demand for products and other services in the Company’s investment-management, asset-servicing, insurance, brokerage, or related businesses. Increased delinquencies or defaults could result as well from the Company adopting—for strategic, competitive, or other reasons—more liberal origination or underwriting standards for extensions of credit or other dealings with its customers or counterparties. If delinquencies or defaults on the Company’s loans or investment securities increase, their value and the income derived from them could be adversely affected, and the Company could incur administrative and other costs in seeking a recovery on its claims and any collateral. Weak or deteriorating economic conditions also may negatively impact the market value and liquidity of the Company’s investment securities, and the Company may be required to record additional impairment charges if investment securities suffer a decline in value that is determined to have resulted from a credit loss. In addition, to the extent that loan charge-offs exceed estimates, an increase to the amount of provision expense related to the allowance for credit losses would reduce the Company’s income. See “Quantitative and Qualitative Disclosures About Market Risk—Credit Risk Management” in Part II, Item 7A of this report for a discussion of how the Company monitors and manages credit risk. A financial or systemic shock and a failure of a significant counterparty or a significant group of counterparties could negatively impact the Company, possibly to a severe degree, due to its role as a financial intermediary and the interconnectedness of the financial system.

A meaningful part of the Company’s loan portfolio is secured by real estate and, as a result, could be negatively impacted by deteriorating or volatile real-estate markets or associated environmental liabilities. At December 31, ~~2021, 50.0%~~2022, 49.2% of the Company’s aggregate loan portfolio—comprised of commercial real-estate loans

~~(representing 36.5%~~ (representing 36.2% of the aggregate loan portfolio) and consumer real-estate loans (representing ~~13.5%~~13.0% of the aggregate loan portfolio)—was primarily secured by interests in real estate located in the States where the Company operates. Other credit extended by the Company may be secured in part by real estate as well. Real-estate values in the markets where this collateral is located may be different from, and in some instances worse than, real-estate values in other markets or in the United States as a whole and may be affected by general economic conditions and a variety of other factors outside of the control of the Company or its customers. Any deterioration or volatility in these real-estate markets could result in increased delinquencies or defaults, could adversely affect the value of the loans and the income to be derived from them, could give rise to unreimbursed recovery costs, and could reduce the demand for new or additional credit and related banking products and other services, all to the detriment of the Company’s business and performance. In addition, if hazardous or toxic substances were found on any real estate that the Company acquires in foreclosure or otherwise, the Company may incur substantial liability for compliance and remediation costs, personal injury, or property damage.

Challenging business, economic, or market conditions could adversely affect the Company’s fee-based banking, investment-management, asset-servicing, or other businesses. The Company’s fee-based banking, investment-management, asset-servicing, and other businesses are driven by wealth creation in the economy, robust market activity, monetary and fiscal stability, and positive investor, business, and consumer sentiment. Economic downturns, market disruptions, high unemployment or underemployment, unsustainable debt levels, depressed ~~real-estate~~real-

estate markets, industry consolidations, or other challenging business, economic, or market conditions could adversely affect these businesses and their results. If the funds or other groups that are clients of UMBFS were to encounter similar difficulties, UMBFS’s revenue could suffer. The Company’s bank-card revenue is driven primarily by transaction volumes in business, healthcare, and consumer spending that generate interchange fees, and any of these conditions could dampen those volumes. Other fee-based banking businesses that could be adversely affected include trading, asset management, custody, trust, and cash and treasury management.

The Company’s investment-management and asset-servicing businesses could be negatively impacted by declines in assets under management or administration or by shifts in the mix of assets under management or administration. The revenues of the Company’s investment-management businesses are highly dependent on advisory fee income. These businesses generally earn higher fees on equity-based or alternative investments and strategies and lower fees on fixed income investments and strategies. Advisory-fee income may be negatively impacted by an absolute decline in assets under management or by a shift in the mix of assets under management from equities or alternatives to fixed income. Such a decline or shift could be caused or influenced by any number of factors, such as underperformance in absolute or relative terms, loss of key advisers or other talent, changes in investing preferences or trends, market downturns or volatility, drops in investor confidence, reputational damage, increased competition, or general economic conditions. Any of these factors also could affect clients of UMBFS, and if this were to cause a decline in assets under administration at UMBFS or an adverse shift in the mix of those assets, the performance of UMBFS could suffer.

To the extent that the Company continues to maintain a sizeable portfolio of available-for-sale investment securities, its income may be adversely affected and its reported equity more volatile. As of December 31, ~~2021,~~2022, the Company’s securities portfolio totaled approximately ~~$13.8~~$13.2 billion, which represented approximately ~~32.4%~~34.4% of its total assets. Regulatory restrictions and the Company’s investment policies generally result in the acquisition of securities with lower yields than loans. For the year-ended December 31, ~~2021,~~2022, the weighted average yield of the Company’s securities portfolio was ~~2.2%~~2.33% as compared to ~~3.7%~~4.30% for its loan portfolio. Accordingly, to the extent that the Company is unable to effectively deploy its funds to originate or acquire loans or other assets with higher yields than those of its investment securities, the Company’s income may be negatively impacted. Additionally, approximately ~~$12.0~~$7.0 billion, or ~~86.7%~~52.9%, of the Company’s investment securities are classified as available for sale and reported at fair value. Unrealized gains or losses on these securities are excluded from earnings and reported in other comprehensive income, which in turn affects the Company’s reported equity. As a result, to the extent that the Company continues to maintain a significant portfolio of available-for-sale securities, its reported equity may experience greater volatility.

Cyber incidents and other security breaches at the Company, at the Company’s service providers or counterparties, or in the business community or markets may negatively impact the Company’s business or performance. In the ordinary course of its business, the Company collects, stores, and transmits sensitive, confidential, or proprietary data and other information, including intellectual property, business information, funds-transfer instructions, and the personally identifiable information of its customers and employees. The secure processing, storage, maintenance, and transmission of this information is critical to the Company’s operations and reputation, and if any of this information were mishandled, misused, improperly accessed, lost, held hostage or stolen or if the

Company’s operations were disrupted, the Company could suffer significant financial, business, reputational, regulatory, or other damage. For example, despite security measures, the Company’s information technology and infrastructure may be breached or rendered inaccessible through cyber-attacks, ransomware and other computer viruses or malware, pretext calls, electronic phishing, or other means. These risks and uncertainties are rapidly evolving and increasing in complexity, and the Company’s failure to effectively mitigate them could negatively impact its business and operations.

Risks and exposures related to cybersecurity attacks have increased as a result of the COVID-19 pandemic and the related increased reliance on remote working, and are expected to remain high for the foreseeable future due to the rapidly evolving nature and sophistication of these threats and the expanding use of technology-based products and services by the Company and its customers. The Company can provide no assurances that the safeguards it has in place or may implement in the future will prevent all unauthorized infiltrations or breaches and that the Company will not suffer losses related to a security breach in the future, which losses may be material.

Service providers and counterparties also present a source of risk to the Company if their own security measures or other systems or infrastructure were to be breached, rendered inaccessible or otherwise fail. Likewise, a cyber-attack or other security breach affecting the business community, the markets, or parts of them may cycle or

cascade through the financial system and adversely affect the Company or its service providers or counterparties. Many of these risks and uncertainties are beyond the Company’s control.

Even when an attempted cyber incident or other security breach is successfully avoided or thwarted, the Company may need to expend substantial resources in doing so, may be required to take actions that could adversely affect customer satisfaction or behavior, and may be exposed to reputational damage. If a breach were to occur, moreover, the Company could be exposed to contractual claims, regulatory actions, and litigation by private plaintiffs, and would additionally suffer reputational harm. Despite the Company’s efforts to safeguard the integrity of systems and controls and to manage third-party risk, the Company may not be able to anticipate or implement effective measures to prevent all security breaches or all risks to the sensitive, confidential, or proprietary information that it or its service providers or counterparties collect, store, or transmit.

The trading volume in the Company’s common stock at times may be low, which could adversely affect liquidity and stock price. Although the Company’s common stock is listed for trading on the NASDAQ Global Select Market, the trading volume in the stock may at times be low and, in relative terms, less than that of other financial-services companies. A public trading market that is deep, liquid, and orderly depends on the presence in the marketplace of a large number of willing buyers and sellers and narrow bid-ask spreads. These market features, in turn, depend on a number of factors, such as the individual decisions of investors and general economic and market conditions, over which the Company has no control. During any period of lower trading volume in the Company’s common stock, the stock price could be more volatile, and the liquidity of the stock could suffer.

The Company operates in a highly regulated industry, and its business or performance could be adversely affected by the legal, regulatory and supervisory frameworks applicable to it, changes in those frameworks, and other legal and regulatory risks and uncertainties. The Company is subject to expansive legal and regulatory frameworks in the United States—at the federal, State, and local levels—and in the foreign jurisdictions where its business segments operate. In addition, the Company is subject to the direct supervision of government authorities charged with overseeing the taxation of domestic companies and the kinds of financial activities conducted by the Company in its business segments. These legal, regulatory, and supervisory frameworks are often designed to protect public or private interests that differ from the interests of the Company’s shareholders or non-deposit creditors. See “Government Monetary and Fiscal Policies” and “Regulation and Supervision” in Part I, Item 1 of this report, which is incorporated by reference herein. The Company believes that government scrutiny of all financial-services companies has increased, fundamental changes have been made to the banking, securities, and other laws that govern financial services (with the Dodd-Frank Act and Basel III being two of the more prominent examples), and a host of related business practices have been reexamined and reshaped. As a result, the Company expects to continue devoting increased time and resources to risk management, compliance, and regulatory change management. Risks also exist that government authorities could judge the Company’s business or other practices as unsafe, unsound, or otherwise unadvisable and bring formal or informal corrective or enforcement actions against it, including fines or other penalties and directives to change its products or other services. For practical or other reasons, the Company may not be able to effectively defend itself against these actions, and they in turn could give rise to litigation by private plaintiffs. Further, if the laws, rules, and regulations materially adversely affect the Company, including any changes that would negatively impact the tax treatment of the Company, the Company’s products and services or the Company’s shareholders, the Company may be adversely impacted. All of

these and other regulatory risks and uncertainties could adversely affect the Company’s reputation, business, results of operations, financial condition, or prospects.

Regulatory or supervisory requirements, future growth, operating results, or strategic plans may prompt the Company to raise additional capital, but that capital may not be available at all or on favorable terms and, if raised, may be dilutive. The Company is subject to safety-and-soundness and capital-adequacy standards under applicable law and to the direct supervision of government authorities. See “Regulation and Supervision” in Part I, Item 1 of this report. If the Company is not or is at risk of not satisfying these standards or applicable supervisory requirements—whether due to inadequate operating results that erode capital, future growth that outpaces the accumulation of capital through earnings, or otherwise—the Company may be required to raise capital, restrict dividends, or limit originations of certain types of commercial and mortgage loans. If the Company is required to limit originations of certain types of commercial and mortgage loans, it would thereby reduce the amount of credit available to borrowers and limit opportunities to earn interest income from the loan portfolio. The Company also may be compelled to raise capital if regulatory or supervisory requirements change. In addition, the Company may elect to raise capital for strategic reasons even when it is not required to do so. The Company’s ability to raise capital on favorable terms or at all will depend on general economic and market conditions, which are outside of its control, and on the Company’s operating and financial performance. Accordingly, the Company

cannot be assured of its ability to raise capital when needed or on favorable terms. An inability to raise capital when needed or on favorable terms could damage the performance and value of its business, prompt regulatory intervention, and harm its reputation, and if the condition were to persist for any appreciable period of time, its viability as a going concern could be threatened. If the Company is able to raise capital and does so by issuing common stock or convertible securities, the ownership interest of its existing stockholders could be diluted, and the market price of its common stock could decline.

The market price of the Company’s common stock could be adversely impacted by banking, antitrust, or corporate laws that have or are perceived as having an anti-takeover effect. Banking and antitrust laws, including associated regulatory-approval requirements, impose significant restrictions on the acquisition of direct or indirect control over any bank holding company, including the Company. Acquisition of ten percent or more of any class of voting stock of a bank holding company or depository institution, including shares of its common stock, generally creates a rebuttable presumption that the acquirer “controls” the bank holding company or depository institution. Also, a bank holding company must obtain the prior approval of the Federal Reserve before, among other things, acquiring direct or indirect ownership or control of more than 5 percent of the voting shares of any bank, including the Bank.

In addition, a non-negotiated acquisition of control over the Company may be inhibited by provisions of the Company’s restated articles of incorporation and bylaws that have been adopted in conformance with applicable corporate law, such as the ability to issue shares of preferred stock and to determine the rights, terms, conditions and privileges of such preferred stock without stockholder approval. If any of these restrictions were to operate or be perceived as operating to hinder or deter a potential acquirer for the Company, the market price of the Company’s common stock could suffer.

The Company’s business relies on systems, employees, service providers, and counterparties, and failures or errors by any of them, intellectual property disputes, or other operational risks could adversely affect the Company. The Company engages in a variety of businesses in diverse markets and relies on hosted and on-premises systems, employees, service providers, and counterparties to properly oversee, administer, and process a high volume of ~~transactions.~~transactions and otherwise support our day-to-day operations. This gives rise to meaningful operational risk—including the risk of fraud by employees or outside parties, unauthorized access to its premises or systems, errors in processing, failures of technology, breaches of internal controls or compliance safeguards, inadequate integration of acquisitions, human error, unavailability of systems and services, and other breakdowns in business continuity plans. In addition, service providers utilizing technology or other intellectual property in connection with our services may make allegations of patent infringement or other intellectual property rights violations. Depending on the scope of the claim, the Company may have to engage in protracted litigation, which is often time-consuming, expensive and can be disruptive to the Company’s operations. If the Company were found to have infringed an intellectual property right, it may be required to pay substantial damages or royalties to a third-party, not all of which may be covered by insurance policies or subject to indemnification by the Company’s service provider. These amounts could have a material adverse effect on the Company’s business, financial condition and results of operations.

Significant financial, business, reputational, regulatory, or other harm could come to the Company as a result of these or related risks and uncertainties. For example, the Company could be negatively impacted if financial, accounting, data-processing, or other systems were to fail or not fully perform their functions. The Company also could be adversely affected if key personnel or a significant number of employees were to become unavailable due to a pandemic, natural disaster, war, act of terrorism, accident, or other reason. These same risks arise as well in connection with the systems and employees of the service providers and counterparties on whom the Company depends as well as their own third-party service providers and counterparties. See “Quantitative and Qualitative Disclosures About Market Risk—Operational Risk” in Part II, Item 7A of this report for a discussion of how the Company monitors and manages operational risk.

The soundness of other financial institutions could adversely affect us. The soundness of other financial institutions could adversely affect the Company. Financial services institutions are interrelated because of trading, clearing, counterparty and other relationships. The Company routinely executes transactions with counterparties in the financial services industry, including brokers and dealers, commercial banks, investment banks, payment processors, and other institutional clients, which may result in payment obligations to the Company or to its clients due to products it has arranged. Many of these transactions expose the Company to credit and market risk that may cause its counterparty or client to default. In addition, the Company is exposed to market risk when the collateral it

holds cannot be realized or is liquidated at prices not sufficient to recover the full amount of the secured obligation. Any losses arising from such occurrences could materially and adversely affect the Company’s business, results of operations or financial condition.

The Company is heavily reliant on technology, and a failure or delay in effectively implementing technology initiatives or anticipating future technology needs or demands could adversely affect the Company’s business or performance. Like most financial-services companies, the Company significantly depends on technology to deliver its products and other services and to otherwise conduct business. To remain technologically competitive and operationally efficient, the Company invests in system upgrades, new solutions, and other technology initiatives, including for both internally and externally hosted solutions. Many of these initiatives are of significant duration, are tied to critical systems, and require substantial internal and external resources. Although the Company takes steps to mitigate the risks and uncertainties associated with these initiatives, there is no guarantee that they will be implemented on time, within budget, or without negative operational or customer impact. The Company also may not succeed in anticipating its future technology needs, the technology demands of its customers, or the competitive landscape for technology. In addition, the Company relies upon the expertise and support of service providers to help implement, maintain and/or service certain of its core technology solutions. If the Company cannot effectively manage these service providers, the service parties fail to materially perform, or the Company was to falter in any of the other noted areas, its business or performance could be negatively impacted.

Negative publicity outside of the Company’s control, or its failure to successfully manage issues arising from its conduct or in connection with the financial-services industry generally, could damage the Company’s reputation and adversely affect its business or performance. The performance and value of the Company’s business could be negatively impacted by any reputational harm that it may suffer. This harm could arise from negative publicity outside of its control or its failure to adequately address issues arising from its own conduct or in connection with the financial-services industry generally. Risks to the Company’s reputation could arise in any number of contexts—for example, cyber incidents and other security breaches, mergers and acquisitions, lending or investment-management practices, actual or potential conflicts of interest, failures to prevent money laundering, corporate governance, and unethical behavior and practices committed by Company employees or competitors in the financial services industry.

The Company faces intense competition from other financial-services and financial-services technology companies, and competitive pressures could adversely affect the Company’s business or performance. The Company faces intense competition in each of its business segments and in all of its markets and geographic regions, and the Company expects competitive pressures to intensify in the future—especially in light of recent legislative and regulatory initiatives, technological innovations that alter the barriers to entry, current economic and market conditions, and government monetary and fiscal policies. Competition with financial-services technology companies, or technology companies partnering with financial-services companies, may be particularly intense, due to, among other things, differing regulatory environments. See “Competition” in Part I, Item 1 of this report. Competitive pressures may drive the Company to take actions that the Company might otherwise eschew, such as lowering the interest rates or fees on loans or raising the interest rates on deposits in order to keep or attract high-quality customers. These pressures also may accelerate actions that the Company might otherwise elect to defer, such as substantial investments in technology or infrastructure. The Company has certain businesses that utilize wholesale models which can lead to customer concentrations for those businesses that, if negatively impacted by new entrants, competitive pressures, or consolidations, could affect the Company’s fee income. Whatever the reason, actions that the Company takes in response to competition may adversely affect its results of operations and financial condition. These consequences could be exacerbated if the Company is not successful in introducing new products and other services, achieving market acceptance of its products and other services, developing and maintaining a strong customer base, or prudently managing expenses.

The Company’s internal controls, risk-management and compliance programs or functions may not be effective in identifying and mitigating risk and loss. The Company maintains standards on internal controls (including over financial reporting), and related disclosures which are regularly reviewed by management, as well as an enterprise risk-management program that is designed to

identify, quantify, monitor, report, and control the risks that it faces. These include interest-rate risk, credit risk, liquidity risk, market risk, operational risk, reputational risk, and compliance risk. The Company also maintains a compliance program to identify, measure, assess, and report on its adherence to applicable law, policies, and procedures. While the Company assesses and improves these controls and programs on an ongoing basis, there can be no assurance that its frameworks or models for risk management, compliance, and related controls will effectively mitigate risk and limit losses in its business. If conditions or circumstances arise that expose flaws or gaps in the Company’s risk-management or compliance programs or if its

controls break down, the performance and value of the Company’s business could be adversely affected. The Company could be negatively impacted as well if, despite adequate programs being in place, its risk-management or compliance personnel are ineffective in executing them and mitigating risk and loss.

Liquidity is essential to the Company and its business or performance could be adversely affected by constraints in, or increased costs for, funding. The Company defines liquidity as the ability to fund increases in assets and meet obligations as they come due, all without incurring unacceptable losses. Banks are especially vulnerable to liquidity risk because of their role in the maturity transformation of demand or short-term deposits into longer-term loans or other extensions of credit. The Company, like other financial-services companies, relies to a significant extent on external sources of funding (such as deposits and borrowings) for the liquidity needed to conduct its business. A number of factors beyond the Company’s control, however, could have a detrimental impact on the availability or cost of that funding and thus on its liquidity. These factors include market disruptions, changes in its credit ratings or the sentiment of its investors, the state of the regulatory environment and monetary and fiscal policies, declines in the value of its investment securities, the loss of substantial deposits or customer relationships, financial or systemic shocks, significant counterparty failures, and reputational damage. Unexpected declines or limits on the dividends declared and paid by the Company’s subsidiaries also could adversely affect its liquidity position. While the Company’s policies and controls are designed to ensure that it maintains adequate liquidity to conduct its business in the ordinary course even in a stressed environment, there can be no assurance that its liquidity position will never become compromised. In such an event, the Company may be required to sell assets at a loss in order to continue its operations. This could damage the performance and value of its business, prompt regulatory intervention, and harm its reputation, and if the condition were to persist for any appreciable period of time, its viability as a going concern could be threatened. See “Quantitative and Qualitative Disclosures About Market Risk—Liquidity Risk” in Part II, Item 7A of this report for a discussion of how the Company monitors and manages liquidity risk.

If the Company’s subsidiaries are unable to make dividend payments or distributions to the Company, it may be unable to satisfy its obligations to counterparties or creditors or make dividend payments to its stockholders. The Company is a legal entity separate and distinct from its bank and nonbank subsidiaries and depends on dividend payments and distributions from those subsidiaries to fund its obligations to counterparties and creditors and its dividend payments to stockholders. See “Regulation and Supervision—Requirements Affecting the Relationships among the Company, Its Subsidiaries, and Other Affiliates” in Part I, Item 1 of this report. Any of the Company’s subsidiaries, however, may be unable to make dividend payments or distributions to the Company, including as a result of a deterioration in the subsidiary’s performance, investments in the subsidiary’s own future growth, or regulatory or supervisory requirements. If any subsidiary were unable to remain viable as a going concern, moreover, the Company’s right to participate in a distribution of assets would be subject to the prior claims of the subsidiary’s creditors (including, in the case of the Bank, its depositors and the FDIC).

An inability to attract, retain, or motivate qualified employees could adversely affect the Company’s business or performance. Skilled employees are the Company’s most important resource, and competition for talented people is intense. Even though compensation is among the Company’s highest expenses, it may not be able to locate and hire the best people, keep them with the Company, or properly motivate them to perform at a high level. Recent scrutiny of compensation practices, especially in the financial-services industry, has made this only more difficult. In addition, some parts of the Company’s business are particularly dependent on key personnel, including investment management, asset servicing, and commercial lending. If the Company were to lose and find itself unable to replace these personnel or other skilled employees or if the competition for talent drove its compensation costs to unsustainable levels, the Company’s business, results of operations, and financial condition could be negatively impacted.

The Company is subject to a variety of litigation and other proceedings, which could adversely affect its business or performance. The Company is involved from time to time in a variety of judicial, alternative-dispute, and other proceedings arising out of its business or operations. The Company establishes reserves for claims when appropriate under generally accepted accounting principles, but costs often can be incurred in connection with a matter before any reserve has been created. The Company also maintains insurance policies to mitigate the cost of

litigation and other proceedings, but these policies have deductibles, limits, and exclusions that may diminish their value or efficacy. Despite the Company’s efforts to appropriately reserve for claims and insure its business and operations, the actual costs associated with resolving a claim may be substantially higher than amounts reserved or covered. Substantial legal claims, even if not meritorious, could have a detrimental impact on the Company’s business, results of operations, and financial condition and could cause reputational harm.

Changes in accounting standards could impact the Company’s financial statements and reported earnings. Accounting standard-setting bodies, such as the Financial Accounting Standards Board, periodically change the financial accounting and reporting standards that affect the preparation of the Company’s Consolidated Financial Statements. These changes are beyond the Company’s control and could have a meaningful impact on its Consolidated Financial Statements.

The Company’s selection of accounting methods, assumptions, and estimates could impact its financial statements and reported earnings. To comply with generally accepted accounting principles, management must sometimes exercise judgment in selecting, determining, and applying accounting methods, assumptions, and estimates. This can arise, for example, in the determination of the allowance for credit losses. Furthermore, accounting methods, assumptions and estimates are part of acquisition purchase accounting and the calculation of the fair value of assets and liabilities that have been purchased, including credit-impaired loans. The judgments required of management can involve difficult, subjective, or complex matters with a high degree of uncertainty, and several different judgments could be reasonable under the circumstances and yet result in significantly different results being reported. See “Critical Accounting Policies and Estimates” in Part II, Item 7 of this report. If management’s judgments are later determined to have been inaccurate, the Company may experience unexpected losses that could be substantial.

The Company’s ability to ~~successfully make~~engage in opportunistic mergers and acquisitions is subject to significant risks, including the risk that government authorities will not provide the requisite approvals, the risk that integrating acquisitions may be more difficult, costly, or time consuming than expected, and the risk that the value of acquisitions may be less than anticipated. The Company may make opportunistic acquisitions of other financial-services companies or businesses from time to time. These acquisitions may be subject to regulatory approval, and there can be no assurance that the Company will be able to obtain that approval in a timely manner or at all. Even when the Company is able to obtain regulatory approval, the failure of other closing conditions to be satisfied or waived could delay the completion of an acquisition for a significant period of time or prevent it from occurring altogether. Any failure or delay in closing an acquisition could adversely affect the Company’s reputation, business, results of operations, financial condition, or prospects.

Additionally, acquisitions involve numerous risks and uncertainties, including lower-than-expected performance or higher-than-expected costs, difficulties related to integration, diversion of management’s attention from other business activities, changes in relationships with customers or counterparties, and the potential loss of key employees. An acquisition also could be dilutive to the Company’s current stockholders if preferred stock, common stock, or securities convertible into preferred stock or common stock were issued to fully or partially pay or fund the purchase price. The Company, moreover, may not be successful in identifying acquisition candidates, integrating acquired companies or businesses, or realizing the expected value from acquisitions. There is significant competition for valuable acquisition targets, and the Company may not be able to acquire other companies or businesses on attractive terms or at all. There can be no assurance that the Company will pursue future acquisitions, and the Company’s ability to grow and successfully compete in its markets and regions may be impaired if it chooses not to pursue, or is unable to successfully complete, acquisitions.

The Company faces risks in connection with its strategic undertakings and new business initiatives. The Company is engaged, and may in the future engage, in strategic activities including acquisitions, joint ventures, partnerships, investments or other business growth initiatives or undertakings. There can be no assurance that the Company will successfully identify appropriate opportunities, that it will be able to negotiate or finance such activities or that such activities, if undertaken, will be successful. The Company is focused on its long-term growth and has undertaken various strategic activities and business initiatives, some of which may involve activities that are new to it. For example, in the future the Company may engage in or focus on new lines of business, financial technologies, and other activities that are outside of its current product offerings. These new initiatives may subject the Company to, among other risks, increased business, reputational and operational risk, as well as more complex legal, regulatory and compliance costs and risks. Its ability to execute strategic activities and new business initiatives successfully will depend on a variety of factors. These factors likely will vary based on the nature of the activity but may include the Company’s success in integrating an acquired company or a new internally-developed growth

initiative into its business, operations, services, products, personnel and systems, operating effectively with any partner with whom it elects to do business, meeting applicable regulatory requirements and obtaining applicable regulatory licenses or other approvals, hiring or retaining key employees, achieving anticipated synergies, meeting management's expectations, actually realizing the anticipated benefits of the activities, and overall general market conditions. The Company’s ability to address these matters successfully cannot be assured. In addition, its strategic efforts may divert resources or management's attention from ongoing business operations and may subject the

Company to additional regulatory scrutiny and potential liability. If the Company does not successfully execute a strategic undertaking, it could adversely affect its business, financial condition, results of operations, reputation or growth prospects.

~~Climate~~Expectations around Environmental, Social and Governance practices, as well as climate change, and related legislative and regulatory initiatives may result in additional risk and operational changes and expenditures that could significantly impact the Company’s business. ~~The~~Companies are facing increased scrutiny from customers, regulators and other stakeholders with respect to their environmental, social and governance (ESG) practices and disclosures. Institutional investors, and investor advocacy groups, in particular, are increasingly focused on these matters, and expectations in many of these areas can vary widely. In addition, increased ESG related compliance costs could result in increases to the Company’s overall operational costs. Failure to adapt to or comply with regulatory requirements or investor or stakeholder expectations and standards, and fluctuations in these standards, could negatively impact the Company’s reputation, ability to do business with certain partners, and its stock price. New government regulations could also result in new or more stringent forms of ESG oversight and expanding mandatory and voluntary reporting, diligence, and disclosure.

In addition to regulatory and investor expectations on environmental matters in general, the current and anticipated effects of climate change are creating an increasing level of concern for the state of the global environment. As a result, political and social attention to the issue of climate change has increased. In recent years, governments across the world have entered into international agreements to attempt to reduce global temperatures, in part by limiting greenhouse gas emissions. The United States Congress, state legislatures and federal and state regulatory agencies have continued to propose and advance numerous legislative and regulatory initiatives seeking to mitigate the effects of climate change. These agreements and measures may result in the imposition of taxes and fees, the required purchase of emission credits, and the implementation of significant operational changes, each of which may require the Company to expend significant capital and incur compliance, operating, maintenance and remediation costs. Given the lack of empirical data on the credit and other financial risks posed by climate change, it is impossible to predict how climate change may impact the Company’s financial condition and operations; however, as a banking organization, the physical effects of climate change may present certain unique risks to the Company. For example, weather disasters, shifts in local climates and other disruptions related to climate change may adversely affect the value of real properties securing the Company’s loans, which could diminish the value of the Company’s loan portfolio. Such events may also cause reductions in regional and local economic activity that may have an adverse effect on the Company’s customers, which could limit the Company’s ability to raise and invest capital in these areas and communities, each of which could have a material adverse effect on the Company’s financial condition and results of operations.

There are no unresolved comments from the staff of the SEC required to be disclosed herein as of the date of this report.

The Company's headquarters building is located at 1010 Grand Boulevard in downtown Kansas City, Missouri. The building opened in July 1986 and all 250,000 square feet are occupied by departments and customer service functions of the Bank, as well as administrative offices for the Company.

Other main facilities of the Bank in downtown Kansas City, Missouri are located at 928 Grand Boulevard ~~(185,000~~(215,000 square feet) and 1008 Oak Street ~~(180,000~~(200,000 square feet). The 928 Grand building houses administrative support functions for the Bank. The 1008 Oak building, which opened during 1999, houses the Company’s operations and data processing functions.

The Bank leases 48,771 square feet in the Hertz Building located at 2 South Broadway in the heart of the commercial sector of downtown St. Louis, Missouri. This location has a full-service banking center and is home to administrative support functions for the Bank.

The Bank also leases 34,681 square feet on the first, second, and fifth floors of the 1670 Broadway building located in the financial district of downtown Denver, Colorado. The location has a full-service banking center and is home to operational and administrative support functions for the Bank.

As of December 31, ~~2021,~~2022, the Bank operated a total of 9189 banking centers.

UMBFS leases 85,164 square feet at 235 West Galena Street in Milwaukee, Wisconsin, for its fund services operations. Additionally, UMBFS leases ~~37,297~~18,655 square feet at 2225 Washington Boulevard in Ogden, Utah, and ~~13,689~~8,339 square feet at 223 Wilmington West Chester Pike in Chadds Ford, Pennsylvania.

Additional information with respect to properties, premises and equipment is presented in Note 1, “Summary of Significant Accounting Policies,” and Note 8, “Premises, Equipment, and Leases,” in the Notes to the Consolidated Financial Statements in Item 8 of this report, and is hereby incorporated by reference herein.

In the normal course of business, the Company and its subsidiaries are named defendants in various legal proceedings. In the opinion of management, after consultation with legal counsel, none of these proceedings are expected to have a material effect on the financial position, results of operations, or cash flows of the Company.

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

The Company's common stock is traded on the NASDAQ Global Select Stock Market under the symbol "UMBF." As of February ~~18, 2022,~~16, 2023, the Company had ~~1,893~~1,324 shareholders of record.

The following table provides information about common stock repurchase activity by the Company during the quarter ended December 31, ~~2021:~~2022:

On April ~~27, 2021,~~26, 2022, the Company’s Board of Directors (the Board) authorized the repurchase of up to two million shares of the Company’s common stock, which will terminate on April ~~26, 2022~~25, 2023 (a Repurchase Authorization). The Company has not made any repurchases other than through this Repurchase Authorization. The Company is not currently engaging in ~~repurchase.~~repurchases. In the future, it may determine to resume repurchases. All share purchases pursuant to a Repurchase Authorization are intended to be within the scope of Rule 10b-18 promulgated under the Exchange Act. Rule 10b-18 provides a safe harbor for purchases in a given day if the Company satisfies the manner, timing and volume conditions of the rule when purchasing its own shares of common stock.

The performance graph below compares the cumulative total shareholder return on UMB Financial Corporation Common Stock with the cumulative total return on the equity securities of companies included in the Standard & Poor’s 500 Stock Index and the ~~SNL U.S. Bank~~S&P US BMI Banks Index, measured at the last trading day of each year shown. The graph assumes an investment of $100 on December 31, ~~2016~~2017 and reinvestment of dividends. The performance graph represents past performance and should not be considered to be an indication of future performance.

Index	2016		2017		2018		2019		2020		2021		2017		2018		2019		2020		2021		2022
UMB Financial Corporation	$	100.00	$	94.63	$	81.51	$	93.50	$	95.97	$	149.75	$	100.00	$	86.14	$	98.81	$	101.42	$	158.25	$	126.66
SNL US Banks		100.00		118.21		98.75		135.64		118.33		160.89
S&P US BMI Banks Index														100.00		83.54		114.74		100.10		136.10		112.89
S&P 500 Index		100.00		121.83		116.49		153.17		181.35		233.41		100.00		95.62		125.72		148.85		191.58		156.88

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis highlights the material changes in the results of operations and changes in financial condition for each of the three years in the period ended December 31, ~~2021.~~2022. It should be read in conjunction with the accompanying Consolidated Financial Statements, Notes to Consolidated Financial Statements, and other financial statistics appearing elsewhere in this Annual Report on Form 10-K. Results of operations for the periods included in this review are not necessarily indicative of results to be attained during any future period.

From time to time the Company has made, and in the future will make, 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 use words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast,” “target,” “trend,” “plan,” “goal,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey the Company’s expectations, intentions, or forecasts about future events, circumstances, results, or aspirations.

This report, including any information incorporated by reference in this report, contains forward-looking statements. The Company also may make forward-looking statements in other documents that are filed or furnished with the SEC. In addition, the Company may make forward-looking statements orally or in writing to investors, analysts, members of the media, or others.

All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond the Company’s control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. While no list of assumptions, risks, or uncertainties could be complete, some of the factors that may cause actual results or other future events, circumstances, or aspirations to differ from those in forward-looking statements include:

Any forward-looking statement made by the Company or on its behalf speaks only as of the date that it was made. The Company does not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that the Company may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, or Current Report on Form 8-K.

~~During~~For over two years, the ~~first quarter of 2020, the global economy began experiencing a downturn related to~~Company has experienced the impacts of the COVID-19 global pandemic (the COVID-19 pandemic, or the pandemic). Such impacts have included significant volatility in the global stock and fixed income markets, ~~a 150-basis-point reduction in the target federal funds rate,~~ the enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the American Rescue Plan Act of 2021, ~~both authorizing~~ the Paycheck Protection Program (PPP) administered by the Small Business Administration, and a variety of rulings from the Company’s banking regulators.

The Company continues to actively monitor developments related to COVID-19 and its impact to its business, customers, employees, counterparties, vendors, and service providers. During ~~the year ended December 31, 2021,~~2022, the Company’s results of operations included continued maintenance of the allowance for credit losses (ACL) at a level appropriate given the state of key macroeconomic variables utilized in the econometric ~~models at December 31, 2021.~~models. Additionally, the Company continued to see impacts of the volatile equity and debt markets ~~and low interest rate environment~~ in its fee-based ~~businesses.~~

In response to the COVID-19 pandemic, the Company formed a Pandemic Taskforce and a steering group comprised of associates across multiple lines of business and support functions and has taken several actions to offer various forms of support to its customers, employees, and communities that have experienced impacts resulting from the COVID-19 pandemic. The Company has also increased purchases of computer hardware to support a remote workforce,businesses, as well as ~~incurred additional cleaning and janitorial expense to disinfect branch and office locations. The Company has actively worked with customers impacted by~~ the economic downturn by offering payment deferrals and other loan modifications. See further details under “Credit Risk Management” within “Item 7A. Quantitative and Qualitative Disclosures about Market Risk.” impacts of the recent interest rate increases in net interest income.

The COVID-19 pandemic ~~and stay-at-home and similar mandates have also~~has necessitated certain actions related to the way the Company operates its business. The Company ~~transitioned most of its workforce off-site or to work-from-home to help mitigate health risks and~~ is ~~currently moving forward with plans to bring associates back in the office in a phased approach during the first half of 2022. The Company is also~~ carefully monitoring the activities of its vendors and other third-party service providers to mitigate the risks associated with any potential service disruptions.

The length of time it may be required to operate under such circumstances and future degrees of disruption remain uncertain. While the Company has ~~detailed~~not experienced material adverse disruptions to its internal operations due to the ~~impact of the COVID-19~~ pandemic, ~~in each applicable section of “Management's Discussion~~it continues to review evolving risks and ~~Analysis of Financial Condition and Results of Operations” included below.~~developments.

The Company focuses on the following four core financial objectives. Management believes these objectives will guide its efforts to achieve its vision, to deliver the Unparalleled Customer Experience, all while seeking to improve net income and strengthen the balance sheet while undertaking prudent risk management.

The first financial objective is to continuously improve operating efficiencies. The Company has focused on identifying efficiencies that simplify its organizational and reporting structures, streamline ~~back office~~back-office functions and take advantage of synergies and newer technologies among various platforms and distribution networks. The Company has identified and expects to continue identifying ongoing efficiencies through the normal course of business that, when combined with increased revenue, will contribute to improved operating leverage. For ~~2021,~~2022, total revenue ~~decreased 0.7%~~increased 14.4%, and noninterest expense increased ~~1.4%~~7.7%, as compared to the previous year. Revenue for ~~2020~~2022 included a $66.2 million gain realized on the sale of the Company’s Visa Inc. Class B common shares. Revenue for 2021 included a loss on the Company’s investment in Tattooed Chef, Inc. (TTCF) of ~~$108.8~~$15.4 million. ~~Revenue for 2021 included a loss of $15.4 million on TTCF.~~ The Company continues to invest in technological advances that it believes will help management drive operating leverage in the future through improved data analysis and automation. The Company also continues to evaluate core systems and will invest in enhancements that it believes will yield operating efficiencies.

The second financial objective is to increase net interest income through profitable loan and deposit growth and the optimization of the balance sheet. For ~~2021,~~2022, net interest income increased ~~$84.3~~$98.3 million, or ~~11.5%~~12.1%, as compared to the previous year. The Company has shown increased net interest income through the effects of increased volume ~~the~~and mix of average earning assets, coupled with higher interest rates. This increase was partially offset by higher interest-bearing deposit rates and lower PPP income. ~~Loans~~There was a decrease of $37.7 million in interest income for loans recorded under the PPP ~~increased loan interest income by $12.4 million~~ in ~~2021~~2022 as compared to ~~2020. The additional increase in interest income was driven by increased loan and securities balances and liquidity. These increases were offset by a lower rate environment.~~2021. Average earning assets increased ~~$6.7~~$2.1 billion, or ~~24.7%~~6.2%, compared to ~~2020.~~2021. Average loan balances ~~increased $1.5 billion, average securities~~ increased $2.2 billion and average securities increased $1.8 billion, partially offset by a decrease in average interest-bearing due from banks ~~increased $2.8~~of $1.7 billion from prior year. Average PPP loans decreased ~~$229.0 million.~~$755.1 million as compared to 2021. The funding for these assets was driven primarily by a ~~17.5%~~2.8% increase in average interest-bearing liabilities and ~~43.5%~~17.9% increase in noninterest-bearing deposits. Net interest margin, on a tax-equivalent basis, ~~decreased 31~~increased 13 basis points compared to the same period in ~~2020.~~2021 in large part due to an increase in the benefit of free funds with the increase in short-term interest rates, coupled with the repricing of earning assets. This increase was partially offset by lower liquidity and the repricing of interest-bearing liabilities. Net interest spread contracted by 22 basis points during the same period.

The third financial objective is to grow the Company’s revenue from noninterest sources. The Company seeks to grow noninterest revenues throughout all economic and interest rate cycles, while positioning itself to benefit in periods of economic growth. Noninterest income ~~decreased $93.0~~increased $87.1 million, or ~~16.6%~~18.6%, to ~~$467.2~~$554.2 million for the year ended December 31, ~~2021,~~2022, compared to the same period in ~~2020.~~2021. ~~This decrease~~The increase for 2022 was ~~primarily~~ driven by ~~the $108.8~~

a $66.2 million gain realized on the sale of the Company’s Visa Inc. Class B common shares, coupled with a loss of $15.4 million on the Company’s investment in TTCF ~~in 2020, coupled with a loss on TTCF of $15.4 million~~recognized in 2021. The ~~decreased revenue attributed to TTCF is offset~~increase was also driven by increased ~~fund services income~~12b-1 and ~~corporate trust~~money market income. These changes are discussed in greater detail below under Noninterest income. ~~As of~~For the year ended December 31, ~~2021,~~2022, noninterest income represented ~~36.4%~~37.8% of total revenues, as compared to ~~43.4%~~36.4% for ~~2020.~~2021.

The fourth financial objective is effective capital management. The Company places a significant emphasis on maintaining a strong capital position, which management believes promotes investor confidence, provides access to funding sources under favorable terms, and enhances the Company’s ability to capitalize on business growth and

acquisition opportunities. The Company continues to maximize shareholder value through a mix of reinvesting in organic growth, evaluating acquisition opportunities that complement the Company’s strategies, increasing dividends over time, and appropriately utilizing a share repurchase program. At December 31, ~~2021,~~2022, the Company had a total risk-based capital ratio of ~~13.88%~~12.50% and ~~$3.1~~$2.7 billion in total shareholders’ equity, ~~an increase~~a decrease of ~~$128.5~~$478.3 million, or ~~4.3%~~15.2%, compared to total shareholders’ equity at December 31, ~~2020.~~2021, driven by increased accumulated other comprehensive losses. The Company repurchased 68333,185 thousand shares of common stock at an average price of ~~$81.36~~$96.03 per share during ~~2021~~2022 and declared ~~$67.3~~$72.6 million in dividends, which represents a ~~10.9%~~7.9% increase compared to dividends declared during ~~2020.~~2021.

The Company recorded consolidated net income of ~~$353.0~~$431.7 million for the year ended December 31, ~~2021.~~2022. This represents a ~~23.2%~~22.3% increase over ~~2020.~~2021. Net income for ~~2020~~2021 was ~~$286.5~~$353.0 million, or an increase of ~~17.6%~~23.2% compared to ~~2019.~~2020. Basic earnings per share for the year ended December 31, ~~2021,~~2022, were ~~$7.31~~$8.93 per share compared to ~~$5.95~~$7.31 per share in ~~2020,~~2021, an increase of ~~22.9%~~22.2%. Basic earnings per share were ~~$4.99~~$5.95 per share in ~~2019,~~2020, or an increase of ~~19.2%~~22.9% from ~~2019~~2020 to ~~2020.~~2021. Fully diluted earnings per share increased 22.4% from 2021 to 2022 and increased 22.1% from 2020 to ~~2021 and increased 19.6% from 2019 to 2020.~~2021. Return on average assets and return on average common shareholder’s equity for the year ended December 31, ~~2021~~2022 were ~~1.00%~~1.15% and ~~11.43%~~15.83%, respectively, compared to 1.00% and ~~10.21%~~11.43%, respectively, for the year ended December 31, ~~2020.~~2021. Return on average assets and return on average common shareholder’s equity for the year ended December 31, ~~2019~~2020 were ~~1.02%~~1.00% and ~~9.94%~~10.21%, respectively.

The Company’s net interest income increased to $913.8 million in 2022 compared to $815.5 million in 2021 ~~compared to~~and $731.2 million in ~~2020 and $670.9 million in 2019.~~2020. In total, net interest income increased ~~$84.3~~$98.3 million, as compared to ~~2020,~~2021, primarily driven by a favorable volume variance of ~~$85.0 million.~~$109.6 million, offset by a $11.3 million rate variance. See Table 2. The favorable volume variance on earning assets was predominantly driven by an increase of ~~$6.7~~$2.1 billion, or 6.2%, in average earning ~~assets, or 24.7%. Average interest-bearing due from banks increased $2.8 billion,~~assets. In 2022, average ~~securities~~loan balances increased $2.2 billion and average ~~loan~~securities balances increased ~~$1.5~~$1.8 billion, ~~for 2021~~partially offset by a decrease of $1.7 billion in average interest-bearing due from banks, as compared to ~~the same period in 2020.~~2021. Net interest margin, on a fully tax-equivalent basis (FTE), ~~decreased~~increased to ~~2.50%~~2.63% for ~~2021,~~2022, compared to ~~2.81%~~2.50% for the same period in ~~2020, as~~2021, driven by the benefit of free funds, higher asset yields, ~~and the~~offset by increased cost of interest-bearing ~~liabilities decreased, coupled with an increased balance sheet. This created significant margin compression.~~liabilities. Net interest spread contracted by 22 basis points during the same period. The Company has seen ~~a decrease~~an increase in the benefit from interest-free funds as compared to ~~2020~~2021 driven by the ~~lower rate environment.~~increase in short-term interest rates. The impact of this benefit ~~decreased seven~~increased 35 basis points compared to ~~2020~~2021 and is illustrated on Table 3. The magnitude and duration of this impact will be largely dependent upon the FRB’s policy decisions and market movements. See Table 18 in Item 7A for an illustration of the impact of an interest rate increase or decrease on net interest income as of December 31, ~~2021.~~2022.

The provision for credit losses totaled ~~$20.0~~$37.9 million for the year ended December 31, ~~2021,~~2022, which is ~~a decrease~~an increase of ~~$110.5~~$17.9 million, or ~~84.7%~~89.5%, compared to the same period in ~~2020.~~2021. This change is the result of ~~the adoption of~~applying the CECL ~~standard in 2020 and applying this~~ methodology for computing the allowance for credit losses, coupled with the impacts of loan growth, portfolio metric changes, and changes in macro-economic metrics in the current ~~and forecasted economic environment related~~period as compared to the ~~COVID-19 pandemic.~~prior period. See further discussion in “Provision and Allowance for Credit Losses” in this report.

The Company had an increase of $87.1 million, or 18.6%, in noninterest income in 2022, as compared to 2021, and a decrease of $93.0 million, or 16.6%, in ~~noninterest income in~~ 2021, as compared to ~~2020,~~2020. The increase in 2022 is primarily driven by increased investment securities gains, net of $53.4 million and ~~an increase~~brokerage fees of ~~$133.4 million, or 31.3%, in 2020, compared to 2019.~~$30.8 million. The decrease in 2021 ~~and increase in 2020~~ is primarily attributable to a decrease of $115.6 million ~~and~~in investment securities gains, net, offset by an increase ~~of $118.4 million~~ in Investment securities gains, net. This is primarily driven by the $108.8 million gain on the Company’s investment in TTCF in 2020 and a loss of $15.4 million in 2021. The decrease in 2021 is also impacted by increased fund services income, corporate trust and ~~bankcard income. These are offset by a decrease in brokerage income.~~securities processing of $29.5 million. The change in noninterest income in 2022 from 2021, and 2021 from 2020 ~~and 2020 from 2019~~ is illustrated in Table 6.

Noninterest expense increased in 2022 by $64.5 million, or 7.7%, compared to 2021 and increased by $11.6 million, or 1.4%, in 2021 compared to ~~2020~~2020. The increase in 2022 is primarily driven by increases in salary and ~~increased by $43.1 million, or 5.5%, in 2020 compared to 2019.~~employee benefits expense, processing fees, other miscellaneous expense, bankcard expense, marketing and business development expense, and legal and consulting expense. The increase in 2021 is primarily driven by increases in processing

fees and salary and employee ~~benefits~~benefit expense, offset by lower operating losses and equipment expense. The increase in noninterest expense in 2022 from 2021, and 2021 from 2020 ~~and 2020 from 2019~~ is illustrated in Table 7.

Net interest income is a significant source of the Company’s earnings and represents the amount by which interest income on earning assets exceeds the interest expense paid on liabilities. The volume of interest earning assets and the related funding sources, the overall mix of these assets and liabilities, and the interest rates paid on each affect net interest income. Table 2 summarizes the change in net interest income resulting from changes in volume and rates for 2022, 2021 ~~2020~~ and ~~2019.~~2020.

Net interest margin, presented in Table 1, is calculated as net interest income on a fully ~~tax- equivalent~~tax-equivalent basis as a percentage of average earning assets. Net interest income is presented on a tax-equivalent basis to adjust for the tax-exempt status of earnings from certain loans and investments, which are primarily obligations of state and local governments. A critical component of net interest income and related net interest margin is the percentage of earning assets funded by interest-free sources. Table 3 analyzes net interest margin for the three years ended December 31, 2022, 2021 ~~2020~~ and ~~2019.~~2020. Net interest income, average balance sheet amounts and the corresponding yields earned and rates paid for the years ~~2019~~2020 through ~~2021~~2022 are presented in Table 1 below.

The following table presents, for the periods indicated, the average earning assets and resulting yields, as well as the average interest-bearing liabilities and resulting yields, expressed in both dollars and rates.

	2021									2020								2022								2021
	Average Balance				Interest Income/ Expense ⁽¹⁾		Rate Earned/ Paid ⁽¹⁾			Average Balance			Interest Income/ Expense ⁽¹⁾		Rate Earned/ Paid ⁽¹⁾			Average Balance			Interest Income/ Expense ⁽¹⁾		Rate Earned/ Paid ⁽¹⁾			Average Balance			Interest Income/ Expense ⁽¹⁾		Rate Earned/ Paid ⁽¹⁾
ASSETS
Loans and loans held for sale (FTE) ^{(2) (3)}	$	16,629.9			$	619.3		3.72	%	$	15,126.1		$	586.0		3.87	%	$	18,823.8		$	810.1		4.30	%	$	16,629.9		$	619.3		3.72	%
Securities:
Taxable		7,422.4				127.6		1.72			5,256.7			105.7		2.01			9,616.7			192.1		2.00			7,422.4			127.6		1.72
Tax-exempt (FTE)		4,247.0				124.5		2.93			4,226.4			126.3		2.99			3,885.1			122.8		3.16			4,247.0			124.5		2.93
Total securities		11,669.4				252.1		2.16			9,483.1			232.0		2.45			13,501.8			314.9		2.33			11,669.4			252.1		2.16
Federal funds sold and resell agreements		1,234.5				10.1		0.81			1,099.4			11.8		1.08			965.9			19.1		1.98			1,234.5			10.1		0.81
Interest-bearing due from banks		4,063.1				5.4		0.13			1,218.9			3.8		0.31			2,408.5			18.6		0.77			4,063.1			5.4		0.13
Other earning assets (FTE)		23.5				1.0		4.33			37.1			1.6		4.28			12.1			0.6		4.96			23.5			1.0		4.33
Total earning assets (FTE)		33,620.4				887.9		2.64			26,964.6			835.2		3.10			35,712.1			1,163.3		3.26			33,620.4			887.9		2.64
Allowance for credit losses		(204.7	)								(184.5	)							(184.1	)							(204.7	)
Cash and due from banks		460.1									440.5								420.0								460.1
Other assets		1,452.8									1,347.5								1,631.0								1,452.8
Total assets	$	35,328.6								$	28,568.1							$	37,579.0							$	35,328.6

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand and savings deposits	$	16,982.9			$	24.1		0.14	%	$	14,446.2		$	49.1		0.34	%	$	17,333.0		$	162.2		0.94	%	$	16,982.9		$	24.1		0.14	%
Time deposits under $250,000		242.0				0.8		0.33			488.3			5.0		1.02			95.0			0.7		0.74			242.0			0.8		0.33
Time deposits of $250,000 or more		453.2		��		1.5		0.33			402.0			4.1		1.02			635.5			4.6		0.72			453.2			1.5		0.33
Total interest-bearing deposits		17,678.1				26.4		0.15			15,336.5			58.2		0.38			18,063.5			167.5		0.93			17,678.1			26.4		0.15
Borrowed funds		270.5				12.7		4.68			137.0			7.3		5.30			309.2			15.5		5.00			270.5			12.7		4.68
Federal funds purchased		163.8				—		0.04			60.3			0.2		0.26			249.7			5.2		2.10			163.8			—		0.04
Securities sold under agreements to repurchase		2,454.3				6.9		0.28			1,963.5			11.6		0.59			2,527.4			35.5		1.40			2,454.3			6.9		0.28
Total interest-bearing liabilities		20,566.7				46.0		0.22			17,497.3			77.3		0.44			21,149.8			223.7		1.06			20,566.7			46.0		0.22
Noninterest-bearing demand deposits		11,254.8									7,845.6								13,264.1								11,254.8
Other		418.0									420.2								438.8								418.0
Total		32,239.5									25,763.1								34,852.7								32,239.5
Total shareholders' equity		3,089.1									2,805.0								2,726.3								3,089.1
Total liabilities and shareholders' equity	$	35,328.6								$	28,568.1							$	37,579.0							$	35,328.6
Net interest income (FTE)					$	841.9							$	757.9							$	939.6							$	841.9
Net interest spread (FTE)								2.42	%							2.66	%							2.20	%							2.42	%
Net interest margin (FTE)								2.50	%							2.81	%							2.63	%							2.50	%

	2019								2020
	Average Balance			Interest Income/ Expense ⁽¹⁾		Rate Earned/ Paid ⁽¹⁾			Average Balance			Interest Income/ Expense ⁽¹⁾		Rate Earned/ Paid ⁽¹⁾
ASSETS
Loans and loans held for sale (FTE) ^{(2) (3)}	$	12,764.6		$	637.9		5.00	%	$	15,126.1		$	586.0		3.87	%
Securities:
Taxable		4,524.9			106.1		2.34			5,256.7			105.7		2.01
Tax-exempt (FTE)		3,797.0			113.7		3.00			4,226.4			126.3		2.99
Total securities		8,321.9			219.8		2.64			9,483.1			232.0		2.45
Federal funds sold and resell agreements		535.4			13.8		2.59			1,099.4			11.8		1.08
Interest-bearing due from banks		584.8			12.9		2.20			1,218.9			3.8		0.31
Other earning assets (FTE)		52.3			2.5		4.79			37.1			1.6		4.28
Total earning assets (FTE)		22,259.0			886.9		3.98			26,964.6			835.2		3.10
Allowance for credit losses		(107.4	)							(184.5	)
Cash and due from banks		454.6								440.5
Other assets		1,178.4								1,347.5
Total assets	$	23,784.6							$	28,568.1

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand and savings deposits	$	12,161.8		$	138.7		1.14	%	$	14,446.2		$	49.1		0.34	%
Time deposits under $250,000		366.3			5.6		1.53			488.3			5.0		1.02
Time deposits of $250,000 or more		644.1			9.9		1.54			402.0			4.1		1.02
Total interest-bearing deposits		13,172.2			154.2		1.17			15,336.5			58.2		0.38
Borrowed funds		69.8			5.2		7.51			137.0			7.3		5.30
Federal funds purchased		123.9			2.7		2.13			60.3			0.2		0.26
Securities sold under agreements to repurchase		1,533.4			29.9		1.95			1,963.5			11.6		0.59
Total interest-bearing liabilities		14,899.3			192.0		1.29			17,497.3			77.3		0.44
Noninterest-bearing demand deposits		6,132.2								7,845.6
Other		301.3								420.2
Total		21,332.8								25,763.1
Total shareholders' equity		2,451.8								2,805.0
Total liabilities and shareholders' equity	$	23,784.6							$	28,568.1
Net interest income (FTE)				$	694.9							$	757.9
Net interest spread (FTE)							2.69	%							2.66	%
Net interest margin (FTE)							3.12	%							2.81	%

This analysis attributes changes in net interest income either to changes in average balances or to changes in average interest rates for earning assets and interest-bearing liabilities. The change in net interest income that is due to both volume and interest rate has been allocated to volume and interest rate in proportion to the relationship of the absolute dollar amount of the change in each. All interest rates are presented on a tax-equivalent basis and give effect to tax-exempt interest income net of the disallowance of interest expense for federal income tax purposes, related to certain tax-free assets. The loan average balances and rates include nonaccrual loans.

Average Volume	Average Volume			Average Rate							Increase (Decrease)									Average Volume			Average Rate							Increase (Decrease)
2021		2020		2021			2020			2021 vs. 2020	Volume			Rate			Total
2022																				2022	2021		2022			2021			2022 vs. 2021	Volume			Rate			Total
										Change in interest earned on:																			Change in interest earned on:
$	16,629,867	$	15,126,110		3.72	%		3.87	%	Loans	$	56,636		$	(23,320	)	$	33,316		18,823,810	$	16,629,867		4.30	%		3.72	%	Loans	$	87,505		$	103,229		$	190,734
										Securities:																			Securities:
	7,422,432		5,256,715		1.72			2.01		Taxable		38,880			(16,956	)		21,924		9,616,691		7,422,432		2.00			1.72		Taxable		41,676			22,820			64,496
	4,246,943		4,226,363		2.93			2.99		Tax-exempt		689			(2,204	)		(1,515	)	3,885,153		4,246,943		3.16			2.93		Tax-exempt		(10,751	)		9,636			(1,115	)
	1,234,533		1,099,447		0.81			1.08		Federal funds and resell agreements		1,336			(3,128	)		(1,792	)	965,911		1,234,533		1.98			0.81		Federal funds and resell agreements		(2,599	)		11,660			9,061
	4,063,089		1,218,919		0.13			0.31		Interest-bearing due from banks		4,757			(3,084	)		1,673		2,408,468		4,063,089		0.77			0.13		Interest-bearing due from banks		(3,034	)		16,199			13,165
	23,480		37,086		4.33			4.28		Trading securities		(592	)		19			(573	)	12,076		23,480		4.96			4.33		Trading securities		(492	)		149			(343	)
	33,620,344		26,964,640		2.64			3.10		Total		101,706			(48,673	)		53,033		35,712,109		33,620,344		3.26			2.64		Total		112,305			163,693			275,998
										Change in interest incurred on:																			Change in interest incurred on:
	17,678,122		15,336,492		0.15			0.38		Interest-bearing deposits		7,804			(39,606	)		(31,802	)	18,063,498		17,678,122		0.93			0.15		Interest-bearing deposits		589			140,552			141,141
	163,744		60,314		0.04			0.26		Federal funds purchased		119			(206	)		(87	)	249,663		163,744		2.10			0.04		Federal funds purchased		56			5,109			5,165
	2,454,290		1,963,499		0.28			0.59		Securities sold under agreements to repurchase		2,414			(7,180	)		(4,766	)	2,527,426		2,454,290		1.40			0.28		Securities sold under agreements to repurchase		211			28,393			28,604
	270,498		136,957		4.68			5.30		Borrowed Funds		6,337			(941	)		5,396		309,204		270,498		5.00			4.68		Borrowed Funds		1,895			917			2,812
$	20,566,654	$	17,497,262		0.22	%		0.44	%	Total		16,674			(47,933	)		(31,259	)	21,149,791	$	20,566,654		1.06	%		0.22	%	Total		2,751			174,971			177,722
										Net interest income	$	85,032		$	(740	)	$	84,292											Net interest income	$	109,554		$	(11,278	)	$	98,276

Average Volume	Average Volume			Average Rate							Increase (Decrease)									Average Volume			Average Rate							Increase (Decrease)
2020		2019		2020			2019			2020 vs. 2019	Volume			Rate			Total
2021																				2021	2020		2021			2020			2021 vs. 2020	Volume			Rate			Total
										Change in interest earned on:																			Change in interest earned on:
$	15,126,110	$	12,764,623		3.87	%		5.00	%	Loans	$	106,011		$	(157,899	)	$	(51,888	)	16,629,867	$	15,126,110		3.72	%		3.87	%	Loans	$	56,636		$	(23,320	)	$	33,316
										Securities:																			Securities:
	5,256,715		4,524,955		2.01			2.34		Taxable		15,854			(16,206	)		(352	)	7,422,432		5,256,715		1.72			2.01		Taxable		38,880			(16,956	)		21,924
	4,226,363		3,796,983		2.99			3.00		Tax-exempt		10,048			(292	)		9,756		4,246,943		4,226,363		2.93			2.99		Tax-exempt		689			(2,204	)		(1,515	)
	1,099,447		535,393		1.08			2.59		Federal funds and resell agreements		9,107			(11,110	)		(2,003	)	1,234,533		1,099,447		0.81			1.08		Federal funds and resell agreements		1,336			(3,128	)		(1,792	)
	1,218,919		584,756		0.31			2.20		Interest-bearing due from banks		7,267			(16,405	)		(9,138	)	4,063,089		1,218,919		0.13			0.31		Interest-bearing due from banks		4,757			(3,084	)		1,673
	37,086		52,306		4.28			4.79		Trading securities		(569	)		(209	)		(778	)	23,480		37,086		4.33			4.28		Trading securities		(592	)		19			(573	)
	26,964,640		22,259,016		3.10			3.98		Total		147,718			(202,121	)		(54,403	)	33,620,344		26,964,640		2.64			3.10		Total		101,706			(48,673	)		53,033
										Change in interest incurred on:																			Change in interest incurred on:
	15,336,492		13,172,181		0.38			1.17		Interest-bearing deposits		21,986			(117,964	)		(95,978	)	17,678,122		15,336,492		0.15			0.38		Interest-bearing deposits		7,804			(39,606	)		(31,802	)
	60,314		123,871		0.26			2.13		Federal funds purchased		(916	)		(1,565	)		(2,481	)	163,744		60,314		0.04			0.26		Federal funds purchased		119			(206	)		(87	)
	1,963,499		1,533,412		0.59			1.95		Securities sold under agreements to repurchase		6,904			(25,189	)		(18,285	)	2,454,290		1,963,499		0.28			0.59		Securities sold under agreements to repurchase		2,414			(7,180	)		(4,766	)
	136,957		69,809		5.30			7.51		Borrowed Funds		3,906			(1,889	)		2,017		270,498		136,957		4.68			5.30		Borrowed Funds		6,337			(941	)		5,396
$	17,497,262	$	14,899,273		0.44	%		1.29	%	Total		31,880			(146,607	)		(114,727	)	20,566,654	$	17,497,262		0.22	%		0.44	%	Total		16,674			(47,933	)		(31,259	)
										Net interest income	$	115,838		$	(55,514	)	$	60,324											Net interest income	$	85,032		$	(740	)	$	84,292

	2021			2020			2019			2022			2021			2020
Average earning assets	$	33,620,344		$	26,964,640		$	22,259,016		$	35,712,109		$	33,620,344		$	26,964,640
Interest-bearing liabilities		20,566,654			17,497,262			14,899,273			21,149,791			20,566,654			17,497,262
Interest-free funds	$	13,053,690		$	9,467,378		$	7,359,743		$	14,562,318		$	13,053,690		$	9,467,378
Free funds ratio (interest free funds to average earning assets)		38.83	%		35.11	%		33.06	%		40.78	%		38.83	%		35.11	%
Tax-equivalent yield on earning assets		2.64	%		3.10	%		3.98	%		3.26	%		2.64	%		3.10	%
Cost of interest-bearing liabilities		0.22			0.44			1.29			1.06			0.22			0.44
Net interest spread		2.42	%		2.66	%		2.69	%		2.20	%		2.42	%		2.66	%
Benefit of interest-free funds		0.08			0.15			0.43			0.43			0.08			0.15
Net interest margin		2.50	%		2.81	%		3.12	%		2.63	%		2.50	%		2.81	%

The Company experienced an increase in net interest income of $98.3 million, or 12.1%, for the year ended December 31, 2022, compared to 2021. This follows an increase of $84.3 million, or 11.5%, for the year ended December 31, 2021, compared to 2020. ~~This follows an increase of $60.3 million, or 9.0%, for the year ended December 31, 2020, compared to 2019.~~ Average earning assets for the year ended December 31, ~~2021~~2022 increased by ~~$6.7~~$2.1 billion, or ~~24.7%~~6.2%, compared to the same period in ~~2020.~~2021. Net interest margin, on a tax-equivalent basis, ~~decreased~~increased to 2.63% for 2022 compared to 2.50% ~~for 2021 compared to 2.81%~~ in ~~2020.~~2021.

The Company funds a significant portion of its balance sheet with noninterest-bearing demand deposits. Noninterest-bearing demand deposits represented ~~45.9%~~40.6%, ~~36.5%~~45.9% and ~~32.1%~~36.5% of total outstanding deposits atas of December 31, 2022, 2021 and 2020, ~~and 2019,~~ respectively. The decrease in 2022 is driven by the increase in short-term interest rates. As illustrated in Table 3, the impact from these interest-free funds was 43 basis points in 2022, as compared to eight basis points in 2021 ~~as compared to~~and 15 basis points in ~~2020 and 43 basis points in 2019.~~2020.

The Company ~~has~~ experienced an increase in net interest income during ~~2021~~2022 due to a volume variance of ~~$85.0~~$109.6 million, offset by a ~~very minimal~~ negative rate variance of ~~$0.7~~$11.3 million. The average rate on earning assets during ~~2021~~2022 has ~~decreased~~increased by 4662 basis points, while the average rate on interest-bearing liabilities ~~decreased~~increased by 2284 basis points, resulting in a 2422 basis-point decrease in spread. The volume of loans has increased from an average of ~~$15.1~~$16.6 billion in ~~2020~~2021 to an average of ~~$16.6~~$18.8 billion in ~~2021~~2022, driven by organic loan growth. The volume of interest-bearing liabilities increased from ~~$17.5 billion in 2020 to~~ $20.6 billion in ~~2021.~~2021 to $21.1 billion in 2022. The Company expects to see continued volatility in the economic markets and ~~government~~governmental responses to ~~these changes as a result of~~inflation, geopolitical tensions, supply chain constraints, and the COVID-19 pandemic. These changing economic conditions and governmental responses could have impacts on the balance sheet and income statement of the Company in ~~2022.~~2023. Loan-related earning assets tend to generate a higher spread than those earned in the Company’s investment portfolio. By design, the Company’s investment portfolio is moderate in duration and liquid in its composition of assets.

During ~~2022,~~2023, approximately ~~$1.6~~$1.1 billion of available-for-sale securities are expected to have principal repayments. This includes approximately ~~$453~~$235 million which will have principal repayments during the first quarter of ~~2022.~~2023. The available-for-sale investment portfolio had an average life of 62.3 months, 67.6 months, ~~70.1 months,~~ and ~~70.9~~70.1 months as of December 31, 2022, 2021, ~~2020,~~ and ~~2019,~~2020, respectively.

The ACL represents management’s judgment of total expected losses included in the Company’s loan portfolio as of the balance sheet date. The Company’s process for recording the ACL is based on the evaluation of the Company’s lifetime historical loss experience, management’s understanding of the credit quality inherent in the loan portfolio, and the impact of the current economic environment, coupled with reasonable and supportable economic forecasts.

A mathematical calculation of an estimate is made to assist in determining the adequacy and reasonableness of management’s recorded ACL. To develop the estimate, the Company follows the guidelines in Accounting Standards Codification (ASC) Topic 326, Financial Instruments – Credit Losses (ASC 326). The estimate reserves for assets held at amortized cost and any related credit deterioration in the Company’s available-for-sale debt security portfolio. Assets held at amortized cost include the Company’s loan book and held-to-maturity security portfolio.

The process involves the consideration of quantitative and qualitative factors relevant to the specific segmentation of loans. These factors have been established over decades of financial institution experience and include economic observation and loan loss characteristics. This process is designed to produce a lifetime estimate of the losses, at a reporting date, that includes evaluation of historical loss experience, current economic conditions, reasonable and supportable forecasts, and the qualitative framework outlined by the Office of the Comptroller of the Currency in the published 2020 Interagency Policy Statement. This process allows management to take a holistic view of the recorded ACL reserve and ensure that all significant and pertinent information is considered.

The Company considers a variety of factors to ensure the safety and soundness of its estimate including a strong internal control framework, extensive methodology documentation, credit underwriting standards which encompass the Company’s desired risk profile, model validation, and ratio analysis. If the Company’s total ACL estimate, as determined in accordance with the approved ACL methodology, is either outside a reasonable range based on review of economic indicators or by comparison of historical ratio analysis, the ACL estimate is an outlier and management will investigate the underlying reason(s). Based on that investigation, issues or factors that previously had not been considered may be identified in the estimation process, which may warrant adjustments to estimated credit losses.

The ending result of this process is a recorded consolidated ACL that represents management’s best estimate of the total expected losses included in the loan portfolio, held-to-maturity securities, and credit deterioration in available-for-sale securities.

Table 4 presents the components of the allowance by loan portfolio segment. The Company manages the ACL against the risk in the entire loan portfolio and therefore, the allocation of the ACL to a particular loan segment may change in the future. Management of the Company believes the present ACL is adequate considering the Company’s loss experience, delinquency trends and current economic conditions. Future economic conditions and borrowers’ ability to meet their obligations, however, are uncertainties which could affect the Company’s ACL and/or need to change its current level of provision. For more information on loan portfolio segments and ACL methodology refer to Note 3, “Loans and Allowance for Credit Losses,” in the Notes to the Consolidated Financial Statements.

This table presents an allocation of the allowance for credit losses on loans and percent of loans to total loans by loan portfolio segment, which represents the total expected losses derived by both quantitative and qualitative methods. The amounts presented are not necessarily indicative of actual future charge-offs in any particular category and are subject to change.

	2021					2020					2022					2021
At December 31:	Allowance for credit losses		Percent of loans to total loans			Allowance for credit losses		Percent of loans to total loans			Allowance for credit losses		Percent of loans to total loans			Allowance for credit losses		Percent of loans to total loans
Commercial and industrial	$	123,732		42.3	%	$	122,700		43.8	%	$	136,737		43.7	%	$	123,732		42.3	%
Specialty lending		1,738		3.0			5,219		3.2			—		2.9			1,738		3.0
Commercial real estate		56,265		36.5			61,931		36.7			39,370		36.2			56,265		36.5
Consumer real estate		3,921		13.5			6,586		12.1			6,148		12.9			3,921		13.5
Consumer		845		0.8			1,480		0.7			494		0.7			845		0.8
Credit cards		6,075		2.3			15,786		2.3			6,866		2.1			6,075		2.3
Leases and other		2,195		1.6			2,271		1.2			2,221		1.5			2,195		1.6
Total allowance for credit losses on loans	$	194,771		100.0	%	$	215,973		100.0	%	$	191,836		100.0	%	$	194,771		100.0	%

Table 5 presents a summary of the Company’s ACL for the years ended December 31, ~~2021~~2022 and ~~2020.~~2021. Also, please see “Quantitative and Qualitative Disclosures About Market Risk – Credit Risk Management” in this report for information relating to nonaccrual, past due, restructured loans, and other credit risk matters. For more information on loan portfolio segments and ACL methodology refer to Note 3, “Loans and Allowance for Credit Losses,” in the Notes to the Consolidated Financial Statements.

As illustrated in Table 5 below, the ACL decreased as a percentage of total loans to 0.91% as of December 31, 2022, compared to 1.13% as of December 31, ~~2021,~~2021. The provision for credit losses, including provision for off-balance sheet credit exposures, totaled $37.9 million for the year ended December 31, 2022, which is an increase of $17.9 million, or 89.5%, compared to ~~1.34% as of December 31, 2020.~~the same period in 2021. The provision for credit losses, including provision for off-balance sheet credit exposures, totaled $20.0 million for the year ended December 31, ~~2021, which is a decrease of $110.5 million, or 84.7%, compared to the same period in 2020.~~ ~~The provision for credit losses, including provision for off-balance sheet credit exposures, totaled $130.5 million for the year ended December 31, 2020.~~2021. This ~~decrease~~increase is the result of the impacts of loan growth, portfolio metric changes, and changes in macro-economic metrics in the current ~~and forecasted economic environment related~~period as compared to the ~~COVID-19 pandemic during 2020 and 2021, coupled with various portfolio changes.~~prior period.

A key objective of the Company is the growth of noninterest income to provide a diverse source of revenue not directly tied to interest rates. Fee-based services are typically non-credit related and are not generally affected by fluctuations in interest rates. Noninterest income increased in 2022 by $87.1 million, or 18.6%, compared to 2021 and decreased in 2021 by $93.0 million, or 16.6%, compared to ~~2020~~2020. The increase in 2022 is primarily attributable to an increase in investment securities gains, net, coupled with an increase in brokerage fee income and ~~increased~~trust and securities processing income. These were partially offset by a decrease in ~~2020 by $133.4 million, or 31.3%, compared to 2019.~~other miscellaneous income. The decrease in 2021 is primarily

attributable to a decrease in investment securities gains, net, and brokerage income, partially offset by increased fund services income, corporate trust income, and bankcard income. ~~These~~Changes in Noninterest income are ~~offset by a decrease~~presented in ~~brokerage income. The increase in 2020 is primarily attributable to investment securities gains, net, fund services income, and trading and investment banking income.~~Table 6 below.

The Company’s fee-based services offer multiple products and services, which management believes will more closely align with customer product demands. The Company is currently emphasizing fee-based services including trust and securities processing, bankcard, securities trading and brokerage and cash and treasury management. Management believes that it can offer these products and services both efficiently and profitably, as most have common platforms and support structures.

	Year Ended December 31,						Dollar Change						Percent Change						Year Ended December 31,						Dollar Change						Percent Change
	2021		2020		2019		21-20			20-19			21-20			20-19			2022		2021		2020		22-21			21-20			22-21			21-20
Trust and securities processing	$	224,126	$	194,646	$	176,913	$	29,480		$	17,733			15.1	%		10.0	%	$	237,207	$	224,126	$	194,646	$	13,081		$	29,480			5.8	%		15.1	%
Trading and investment banking		30,939		32,945		23,466		(2,006	)		9,479			(6.1	)		40.4			23,201		30,939		32,945		(7,738	)		(2,006	)		(25.0	)		(6.1	)
Service charges on deposit accounts		86,056		83,879		82,748		2,177			1,131			2.6			1.4			85,167		86,056		83,879		(889	)		2,177			(1.0	)		2.6
Insurance fees and commissions		1,309		1,369		1,634		(60	)		(265	)		(4.4	)		(16.2	)		1,338		1,309		1,369		29			(60	)		2.2			(4.4	)
Brokerage fees		12,171		24,350		31,261		(12,179	)		(6,911	)		(50.0	)		(22.1	)		43,019		12,171		24,350		30,848			(12,179	)		253.5			(50.0	)
Bankcard fees		64,576		60,544		66,727		4,032			(6,183	)		6.7			(9.3	)		73,451		64,576		60,544		8,875			4,032			13.7			6.7
Investment securities gains, net		5,057		120,634		2,245		(115,577	)		118,389			(95.8	)		5,273.5			58,444		5,057		120,634		53,387			(115,577	)		1,055.7			(95.8	)
Other		42,941		41,799		41,776		1,142			23			2.7			0.1			32,406		42,941		41,799		(10,535	)		1,142			(24.5	)		2.7
Total noninterest income	$	467,175	$	560,166	$	426,770	$	(92,991	)	$	133,396			(16.6	)%		31.3	%	$	554,233	$	467,175	$	560,166	$	87,058		$	(92,991	)		18.6	%		(16.6	)%

Noninterest income and the year-over-year changes in noninterest income are summarized in Table 6 above. The dollar change and percent change columns highlight the respective net increase or decrease in the categories of noninterest income in 2022 compared to 2021, and in 2021 compared to ~~2020, and in 2020 compared to 2019.~~2020.

Trust and securities processing income consists of fees earned on personal and corporate trust accounts, custody of securities services, trust investments and wealth management services, and mutual fund assets servicing. This income category increased by $13.1 million, or 5.8% in 2022, compared to 2021, and increased by $29.5 million, or 15.1%, in 2021, compared to ~~2020,~~2020. During 2022, fund services income increased $12.9 million and corporate trust income increased $6.5 million, partially offset by ~~$17.7 million, or 10.0%,~~a decrease in ~~2020, compared to 2019.~~wealth management income of $6.3 million. During 2021, fund services income increased $27.5 million and corporate trust income increased $5.8 million, offset by a decrease in wealth management income of $3.8 million. ~~During 2020, fund~~The recent volatile markets have impacted the income in this category. Since trust and securities processing fees are primarily asset-based, which are highly correlated to the change in market value of the assets, the related income will be affected by changes in the securities markets. Management continues to emphasize sales of services ~~income increased $10.6 million~~to both new and ~~corporate trust income increased $7.2 million.~~ existing clients as well as increasing and improving the distribution channels.

Trading and investment banking income decreased $7.7 million, or 25.0%, in 2022 compared to 2021 and decreased $2.0 million, or 6.1%, in 2021 compared to ~~2020 and increased $9.5 million, or 40.4%, in 2020 compared to 2019. The decrease in 2021 compared to 2020 was~~2020. These decreases were driven by ~~slightly~~ lower trading volume and lower market values. ~~The increase in 2020 compared to 2019 was driven by increased bond trading volume.~~

Service charges on deposits income decreased $0.9 million, or 1.0%, in 2022 compared to 2021 and increased $2.2 million, or 2.6%, in 2021 compared to ~~2020 and increased $1.1 million, or 1.4%,~~2020. The decrease in ~~2020~~2022 compared to ~~2019.~~2021 was driven by decreased healthcare services income, partially offset by increased consumer service charge income. The increase in 2021 compared to 2020 was driven by increased corporate service charge income. ~~The increase in 2020 compared to 2019 was driven by increased healthcare services income.~~

Brokerage fees increased $30.8 million, or 253.5%, in 2022 compared to 2021 and decreased $12.2 million, or 50.0%, in 2021 compared to ~~2020 and $6.9 million, or 22.1%,~~2020. The increase in ~~2020~~2022 compared to ~~2019. These decreases were primarily~~2021 was driven by increased 12b-1 and money market fees driven by the increase in short-term interest rates. The decrease in 2021 compared to 2020 was due to lower money market and 12b-1 income driven by a decrease in volume and interest rates.

Bankcard fees increased $8.9 million, or 13.7%, in 2022 compared to 2021, and increased $4.0 million, or 6.7%, in 2021 compared to ~~2020, and decreased $6.2 million, or 9.3%, in 2020 compared to 2019. The increase in 2021 compared to 2020 was~~2020. These increases were primarily driven by increased interchange income, offset by increased rewards and rebate expense. ~~The decrease in 2020 compared to 2019 was primarily driven by decreased interchange income, offset by decreased rewards and rebate expense.~~

Investment securities gains, net increased $53.4 million in 2022 compared to 2021 but decreased $115.6 million in 2021 compared to ~~2020 but increased by $118.4 million in 2020 compared to 2019, primarily~~2020. The increase for 2022 was driven by ~~changes in valuation~~a $66.2 million gain realized on the sale of

the Company’s Visa Inc. Class B common shares, coupled with a loss of $15.4 million on the Company’s investment in ~~TTCF.~~TTCF recognized in 2021. The decrease in 2021 was driven by the ~~$15.4 million loss in 2021 on TTCF, coupled with the~~ $108.8 million gain on the Company’s investment in TTCF ~~recorded~~ in ~~2020. This decrease was offset by an increase~~2020 and the loss of ~~$5.9~~$15.4 million in ~~gains on equity securities without readily determinable fair values.~~2021 noted above.

Other noninterest income decreased $10.5 million, or 24.5%, in 2022 compared to 2021 and increased $1.1 million, or 2.7%, in 2021 compared to 2020. The decrease in 2022 was primarily driven by market value changes in company-owned life insurance income. The increase in ~~2020~~2021 was primarily driven by the ~~$108.8 million~~ gain on ~~TTCF, an increase~~sale of ~~$3.9 million~~the Company’s membership interests in ~~gains on equity securities without readily determinable fair values, and an increase~~PCM during the first quarter of ~~$3.8 million in gains on sales of available-for-sale securities.~~2021.

Noninterest expense increased in 2022 by $64.5 million, or 7.7%, compared to 2021 and increased in 2021 by $11.6 million, or 1.4%, compared to ~~2020~~2020. From 2021 to 2022 the increase was driven by increases in salary and ~~increased in 2020 by $43.1 million, or 5.5%, compared to 2019.~~employee benefits expense, processing fees, other miscellaneous expense, bankcard expense, and marketing and business development expense. From 2020 to 2021 the ~~increases were~~increase was driven by processing fees and salary and employee benefits expense, offset by other miscellaneous expense and equipment expense. The main drivers of the increase from 2019 to 2020 were driven by salary and employee benefits expense, other miscellaneous expense, and equipment expense, offset by a decrease in marketing and business development expense. Table 7 below summarizes the components of noninterest expense and the respective year-over-year changes for each category.

	Year Ended December 31,						Dollar Change						Percent Change						Year Ended December 31,						Dollar Change						Percent Change
	2021		2020		2019		21-20			20-19			21-20			20-19			2022		2021		2020		22-21			21-20			22-21			21-20
Salaries and employee benefits	$	504,442	$	495,464	$	461,445	$	8,978		$	34,019			1.8	%		7.4	%	$	524,431	$	504,442	$	495,464	$	19,989		$	8,978			4.0	%		1.8	%
Occupancy, net		47,345		47,476		47,771		(131	)		(295	)		(0.3	)		(0.6	)		48,848		47,345		47,476		1,503			(131	)		3.2			(0.3	)
Equipment		78,398		85,719		79,086		(7,321	)		6,633			(8.5	)		8.4			74,259		78,398		85,719		(4,139	)		(7,321	)		(5.3	)		(8.5	)
Supplies and services		14,986		15,537		18,699		(551	)		(3,162	)		(3.5	)		(16.9	)		13,590		14,986		15,537		(1,396	)		(551	)		(9.3	)		(3.5	)
Marketing and business development		18,533		14,679		26,257		3,854			(11,578	)		26.3			(44.1	)		25,699		18,533		14,679		7,166			3,854			38.7			26.3
Processing fees		67,563		54,213		52,198		13,350			2,015			24.6			3.9			82,227		67,563		54,213		14,664			13,350			21.7			24.6
Legal and consulting		32,406		29,765		31,504		2,641			(1,739	)		8.9			(5.5	)		39,095		32,406		29,765		6,689			2,641			20.6			8.9
Bankcard		19,145		18,954		17,750		191			1,204			1.0			6.8			26,367		19,145		18,954		7,222			191			37.7			1.0
Amortization of other intangible assets		4,757		6,517		5,506		(1,760	)		1,011			(27.0	)		18.4			5,037		4,757		6,517		280			(1,760	)		5.9			(27.0	)
Regulatory fees		11,894		10,279		11,489		1,615			(1,210	)		15.7			(10.5	)		15,378		11,894		10,279		3,484			1,615			29.3			15.7
Other		34,167		43,402		27,155		(9,235	)		16,247			(21.3	)		59.8			43,188		34,167		43,402		9,021			(9,235	)		26.4			(21.3	)
Total noninterest expense	$	833,636	$	822,005	$	778,860	$	11,631		$	43,145			1.4	%		5.5	%	$	898,119	$	833,636	$	822,005	$	64,483		$	11,631			7.7	%		1.4	%

Salaries and employee benefits expense increased $20.0 million, or 4.0%, in 2022 compared to 2021 and $9.0 million, or 1.8%, in 2021 compared to ~~2020~~2020. In 2022, salary and ~~$34.0~~wage expense increased $17.5 million, or ~~7.4%~~5.9% and bonus and commission expense increased $4.4 million, or 3.5%, driven by business volumes and revenue growth, and higher company performance. These increases were offset by a decrease in ~~2020 compared to 2019.~~employee benefits expense of $1.9 million, or 2.3%. In 2021, bonus and commission expense increased $8.7 million, or 7.5%, driven by business volumes and revenue growth, and higher company performance. Salary and wage expense increased $1.7 million, or 0.6%. These increases were offset by a decrease in employee benefits expense of $1.4 million, or 1.7%. ~~In 2020, bonus and commission~~

Equipment expense ~~increased $23.6~~decreased $4.1 million, or ~~25.3%~~5.3%, ~~driven by business volumes~~in 2022 compared to 2021, and revenue growth, and higher company performance. Salary and wage expense increased $12.1 million, or 4.3%. These increases were offset by a decrease in employee benefits expense of $1.7 million, or 2.1%.

~~Equipment expense~~ decreased $7.3 million, or 8.5%, from 2020 to 2021. The decreases in ~~2021 compared to 2020, and increased $6.6 million, or 8.4%, from 2019 to 2020, respectively. The decrease in 2021 was~~both years were driven by lower software ~~amortization~~expense related to a transition to cloud-based computing solutions. The increase in 2020 compared to 2019 was driven by computer hardware and software expenses for the ongoing investments in digital channel and integrated platform solutions to support business growth and the continued modernization of core systems.

Marketing and business development expense increased $7.2 million, or 38.7%, in 2022 compared to 2021, and increased $3.9 million, or 26.3%, in 2021 compared to ~~2020, but decreased $11.6 million, or 44.1%,~~2020. The increases in ~~2020 compared to 2019. The increase in 2021 was~~both years were driven by the timing of advertising and business development projects and higher travel expenses as compared to ~~2020. The decrease in 2020 is driven by reduced travel and entertainment expenses and business development expense related to~~ the ~~COVID-19 pandemic.~~prior year.

Processing fees expense increased $14.7 million, or 21.7%, in 2022 compared to 2021, and increased $13.4 million, or 24.6%, in 2021 compared to ~~2020, and increased $2.0 million, or 3.9%, in 2020 compared to 2019.~~2020. The increases in 2022 and 2021 ~~and 2020 are~~were primarily driven by the transition to cloud computing solutions and ongoing investments in digital channel and integrated platform solutions to support business growth and the continued modernization of core systems.

Legal and consulting expense increased $6.7 million, or 20.6%, in 2022 compared to 2021 and increased $2.6 million, or 8.9%, in 2021 compared to 2020. These increases were primarily driven by higher consulting expense due to the timing of multiple projects.

Bankcard expense increased $7.2 million, or 37.7%, in 2022 compared to 2021 and increased $0.2 million, or 1.0%, in 2021 compared to 2020. The increase in 2022 compared to 2021 was driven by higher card administration costs coupled with higher fraud losses.

Other noninterest expense increased $9.0 million, or 26.4%, in 2022 compared to 2021 and decreased $9.2 million, or 21.3%, in 2021 compared to ~~2020~~2020. The increase in 2022 was driven by higher operational losses and increased ~~$16.2 million, or 59.8%, in 2020 compared to 2019.~~charitable contributions expense. The decrease in 2021 iswas driven by lower operational losses, partially offset by higher charitable contributions expense. ~~The increase in 2020 is primarily driven by higher operational losses and derivative expense.~~

Income tax expense totaled $100.3 million, $76.0 million, and $52.4 million in 2022, 2021, and ~~$42.4 million in 2021,~~ 2020 ~~and 2019~~ respectively. These amounts equate to effective tax rates of ~~17.7%~~18.9%, ~~15.5%~~17.7%, and ~~14.8%~~15.5% for 2022, 2021 and 2020, ~~and 2019,~~ respectively. The increase in the effective tax rate from 2021 to 2022 is primarily attributable to a smaller portion of pre-tax income being earned from tax-exempt municipal securities. The increase in the effective tax rate from 2020 to 2021 is primarily attributable to a smaller portion of pre-tax income being earned from tax-exempt municipal securities and higher state and local income taxes. ~~The increase in the effective tax rate from 2019 to 2020 is primarily attributable to a smaller portion of pre-tax income being earned from tax-exempt municipal securities.~~

For further information on income taxes refer to Note 16, “Income Taxes,” in the Notes to the Consolidated Financial Statements.

The Company has strategically aligned its operations into the following three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking (collectively, the Business Segments). Senior executive officers regularly evaluate Business Segment financial results produced by the Company’s internal reporting system in deciding how to allocate resources and assess performance for individual Business Segments. Previously, the Company had the following four Business Segments: Commercial Banking, Institutional Banking, Personal Banking, and Healthcare Services. In the first quarter of 2020, the Company merged the Healthcare Services segment into the Institutional Banking segment to better reflect how the Company’s core businesses, products and services are currently being evaluated by management. The management accounting system assigns balance sheet and income statement items to each Business Segment using methodologies that are refined on an ongoing basis. For comparability purposes, amounts in all periods are based on methodologies in effect at December 31, ~~2021.~~2022. Previously reported results have been reclassified in this Form 10-K to conform to the Company’s current organizational structure.

	Year Ended December 31,				Dollar Change			Percent Change			Year Ended December 31,				Dollar Change		Percent Change
	2021		2020		21-20			21-20			2022		2021		22-21		22-21
Net interest income	$	556,673	$	475,425	$	81,248			17.1	%	$	596,031	$	579,992	$	16,039		2.8	%
Provision for credit losses		15,553		119,424		(103,871	)		(87.0	)		32,851		15,543		17,308		111.4
Noninterest income		81,752		189,412		(107,660	)		(56.8	)		122,614		84,417		38,197		45.2
Noninterest expense		289,039		272,283		16,756			6.2			332,912		306,424		26,488		8.6
Income before taxes		333,833		273,130		60,703			22.2			352,882		342,442		10,440		3.0
Income tax expense		59,165		42,223		16,942			40.1			66,548		60,691		5,857		9.7
Net income	$	274,668	$	230,907	$	43,761			19.0	%	$	286,334	$	281,751	$	4,583		1.6	%

For the year ended December 31, ~~2021,~~2022, Commercial Banking net income increased ~~$43.8~~$4.6 million, or ~~19.0%~~1.6%, to ~~$274.7~~$286.3 million compared to the same period in ~~2020.~~2021. Net interest income increased ~~$81.2~~$16.0 million, or ~~17.1%~~2.8%, for the year ended December 31, ~~2021,~~2022, compared to the same period last year, primarily driven by strong loan growth, earning asset mix changes, and the ~~Company’s participation~~increase in ~~the PPP. PPP loans averaged $802.4 million during 2021, and PPP income~~short-term interest rates. Provision for credit losses increased ~~$12.4~~$17.3 million as compared to ~~2020. Provision for credit losses decreased $103.9 million~~2021, driven by loan growth, portfolio metric changes, and changes in macro-economic metrics in 2022 as compared to ~~2020. The provision expense for 2020 was significantly impacted by the adoption of CECL,~~

coupled with the impacts of the COVID-19 pandemic on the economic environment and reasonable and supportable economic forecasts. The provision in 2021 represents substantial improvement in these forecasts.2021. Noninterest income ~~decreased $107.7~~increased $38.2 million, or ~~56.8%~~45.2%, over the same period in ~~2020. Investment securities~~2021. This increase was primarily due to an allocated portion of the gain on the sale of Visa Inc. Class B

common shares, partially offset by the decline in company-owned life insurance for the year ended December 31, 2022 as compared to the prior year. Additionally, there were increases of $9.7 million in other investment security gains ~~net decreased $117.0~~and $4.6 million ~~primarily~~in other income, driven by the ~~change in market valuation~~gain on the sale of the Company’s ~~investment in TTCF. This decrease was partially offset by increases of $3.3 million in deposit service charges, $2.7 million in gains on sales of assets,~~factoring loan portfolio, and ~~$2.5~~$3.8 million in bankcard ~~fees.~~ income, primarily due to increased interchange income. Noninterest expense increased ~~$16.8~~$26.5 million, or ~~6.2%~~8.6%, as compared to the same period in ~~2020.~~ 2021. This increase was driven by ana $17.3 million increase ~~of $20.0 million~~ in technology, service, and overhead expenses, ~~$4.9 million in salaries and employee benefits expense, $1.8~~an increase of $3.1 million in marketing and business development, ~~expense, $1.6~~an increase of $2.1 million in ~~processing fees,~~salary and ~~$1.3~~employee benefits expense, an increase of $1.5 million in regulatory ~~fees. These increases were partially offset by a decrease~~fees, an increase of ~~$12.9~~$0.9 million in bankcard expense, and an increase of $0.9 million in operational losses as compared to ~~2020.~~2021.

	Year Ended December 31,				Dollar Change			Percent Change			Year Ended December 31,				Dollar Change			Percent Change
	2021		2020		21-20			21-20			2022		2021		22-21			22-21
Net interest income	$	87,644	$	106,856	$	(19,212	)		(18.0	)%	$	159,679	$	87,644	$	72,035			82.2	%
Provision for credit losses		630		882		(252	)		(28.6	)		495		630		(135	)		(21.4	)
Noninterest income		273,413		254,874		18,539			7.3			323,794		273,483		50,311			18.4
Noninterest expense		292,080		286,635		5,445			1.9			320,976		292,142		28,834			9.9
Income before taxes		68,347		74,213		(5,866	)		(7.9	)		162,002		68,355		93,647			137.0
Income tax expense		12,113		11,472		641			5.6			30,551		12,113		18,438			152.2
Net income	$	56,234	$	62,741	$	(6,507	)		(10.4	)%	$	131,451	$	56,242	$	75,209			133.7	%

For the year ended December 31, ~~2021,~~2022, Institutional Banking net income ~~decreased $6.5~~increased $75.2 million, or ~~10.4%~~133.7%, compared to the same period last year. Net interest income ~~decreased $19.2~~increased $72.0 million, or ~~18.0%~~82.2%, compared to the same period last year, due to ~~a decrease~~an increase in funds transfer pricing ~~driven by lower~~due to the increase in interest rates. Noninterest income increased ~~$18.5~~$50.3 million, or ~~7.3%~~18.4%, primarily due to increases of ~~$27.5~~$31.1 million in brokerage fees, $12.9 million in fund services income, ~~$5.8~~$6.5 million in corporate trust income, ~~both recorded in trust and securities processing revenue, $0.9~~$3.0 million in bankcard fees, and ~~$0.8 million in other income. The increases in fund services income and corporate trust income are related to increased assets administered as compared to~~an allocated portion of the ~~prior year.~~ gain on the sale of Visa Inc. Class B common shares. These increases were partially offset by decreases of ~~$12.0~~$7.7 million ~~in brokerage fees~~ and ~~$4.7~~$3.0 million in bond trading ~~income. The decrease in brokerage fees is primarily due to lower 12b-1~~income and ~~money market revenue and the~~service charges on deposits, respectively, coupled with a decline in ~~bond trading income is due~~company-owned life insurance compared to ~~decreased trading volumes.~~ the same period last year. Noninterest expense increased ~~$5.4~~$28.8 million, or ~~1.9%,~~9.9% as compared to 2021. This increase was primarily driven by increases of $18.3 million in salary and employee benefits expense, $4.7 million in bankcard expense, $4.5 million in technology, service, and overhead expenses, $2.6 million in marketing and ~~$4.5~~business development, and $1.1 million in processing fees. These increases were partially offset by ~~decreases~~a decrease of ~~$2.8~~$2.6 million in ~~salary and employee benefits expense, and $1.3 million in equipment expense.~~operational losses.

	Year Ended December 31,					Dollar Change			Percent Change			Year Ended December 31,				Dollar Change			Percent Change
	2021		2020			21-20			21-20			2022		2021		22-21			22-21
Net interest income	$	171,204	$	148,948		$	22,256			14.9	%	$	158,087	$	147,885	$	10,202			6.9	%
Provision for credit losses		3,817		10,194			(6,377	)		(62.6	)		4,554		3,827		727			19.0
Noninterest income		112,010		115,880			(3,870	)		(3.3	)		107,825		109,275		(1,450	)		(1.3	)
Noninterest expense		252,517		263,087			(10,570	)		(4.0	)		244,231		235,070		9,161			3.9
Income (loss) before taxes		26,880		(8,453	)		35,333			418.0
Income tax expense (benefit)		4,764		(1,307	)		6,071			464.5
Net income (loss)	$	22,116	$	(7,146	)	$	29,262			409.5	%
Income before taxes													17,127		18,263		(1,136	)		(6.2	)
Income tax expense													3,230		3,238		(8	)		(0.2	)
Net income												$	13,897	$	15,025	$	(1,128	)		(7.5	)%

For the year ended December 31, ~~2021,~~2022, Personal Banking net income ~~increased $29.3~~decreased $1.1 million, or 7.5%, as compared to the same period last year. Net interest income increased ~~$22.3~~$10.2 million, or ~~14.9%~~6.9%, compared to the same period last year due to increased loan ~~balances.~~balances and the impact of higher short-term interest rates. Provision for credit losses increased $0.7 million for the period, driven by loan growth, portfolio metric changes, and changes in macro-economic metrics in 2022 as compared to 2021. Noninterest income decreased ~~$6.4 million. The provision expense for 2020 was significantly impacted by the adoption of CECL, coupled with the impacts of the COVID-19 pandemic on~~$1.5 million, or 1.3%,

the economic environment and reasonable and supportable economic forecasts. The provision in 2021 represents substantial improvements in these forecasts. Noninterest income decreased $3.9 million, or 3.3%, primarily driven by ~~a decrease~~decreases of ~~$3.8~~$6.2 million in ~~trust~~wealth management income, ~~and $1.3~~$3.9 million ~~in equity earnings~~ on ~~alternative investments. Both decreases are related to~~gains on the sale of ~~PCM~~mortgage loans, and $3.3 million in ~~the first quarter of 2021.~~investment security gains. These decreases were partially offset by an increase in noninterest income due to an allocated portion of ~~$0.6 million~~the gain on the sale of Visa Inc. Class B common shares, partially offset by the decline in ~~bankcard fees driven by higher interchange income.~~ company-owned life insurance. Noninterest expense ~~decreased $10.6~~increased $9.2 million, or ~~4.0%~~3.9%, primarily due to ~~decreases~~increases of ~~$7.5~~$8.5 million in ~~salary~~technology, service, and ~~employee benefits, $2.6~~overhead expenses, $4.6 million in processing fees, $1.5 million in bankcard expense, and $1.1 million in operational losses, ~~and $2.2 million in legal and consulting expense. These decreases were~~ partially offset by ~~an increase~~a decrease of ~~$1.8~~$5.7 million in ~~marketing~~salaries and ~~business development expense.~~employee benefits.

Loans represent the Company’s largest source of interest income. Loan balances held for investment increased by ~~$1.1~~$3.9 billion, or ~~6.6%~~22.5%, in ~~2021.~~2022. This increase was primarily driven by an increase of ~~$374.5 million,~~$1.9 billion, or ~~19.3%~~26.8%, in ~~consumer real estate~~commercial loans, ~~$358.6 million,~~$1.3 billion, or ~~6.1%~~21.5%, in commercial real estate loans, ~~$196.0~~and $403.2 million, or ~~2.8%,~~17.4% in ~~commercial loans, and $91.4 million, or 47.9% in lease and other~~consumer real estate loans.

Commercial & industrial loans and commercial real estate loans continue to represent the largest segments of the Company’s loan portfolio, comprising approximately 43.8% and 36.2%, respectively, of total loans and loans held for sale at the end of 2022 and 42.3% and 36.5%, respectively, of total loans and loans held for sale at the end of ~~2021 and 43.8% and 36.7%, respectively, of total loans and loans held for sale at the end of 2020.~~2021.

Commercial loans represent the largest percent of total loans. Commercial loans at December 31, ~~2021~~2022 have increased ~~$196.0 million,~~$1.9 billion, or ~~2.8%~~26.8%, as compared to December 31, ~~2020,~~2021, to ~~42.3%~~43.8% of total loans. Commercial loans represented ~~43.8%~~42.3% of total loans at December 31, 2020. The Company’s commercial loan balances have been impacted by the Company’s participation in the PPP. PPP loans totaled $136.5 million and $1.3 billion as of December 31, 2021 and December 31, 2020, respectively.2021.

As a percentage of total loans, commercial real estate comprises ~~36.5%~~36.2% of total loans compared to ~~36.7%~~36.5% in ~~2020.~~2021. Commercial real estate loans increased ~~$358.6 million,~~$1.3 billion, or ~~6.1%~~21.5%, compared to ~~2020.~~2021. Generally, these loans are made for investment and real estate development or working capital and business expansion purposes and are primarily secured by real estate with a maximum loan-to-value of 80%. Most of these properties are non-owner occupied and have guarantees as additional security.

Consumer real estate loans increased ~~$374.5~~$403.2 million, or ~~19.3%~~17.4%, ~~and~~compared to 2021. These loans represented ~~13.5%~~12.9% of total ~~loans. Specialty lending~~ loans ~~increased $11.1 million, or 2.2%, and represented 3.0%~~as of ~~total loans~~December 31, 2022, compared to 13.5% as of December 31, 2021.

For further information on loan portfolio segments refer to Note 3, “Loans and Allowance for Credit Losses,” in the Notes to the Consolidated Financial Statements.

Nonaccrual, past due and restructured loans are discussed under “Quantitative and Qualitative Disclosure about Market Risk – Credit Risk Management” in Item 7A of this report.

The Company’s investment portfolio contains trading, available-for-sale (AFS), and held-to-maturity (HTM) securities as well as FRB stock, Federal Home Loan Bank (FHLB) stock, and other miscellaneous investments. Investment securities totaled $13.2 billion as of December 31, 2022 and $13.8 billion as of December 31, 2021 and ~~$10.6 billion as of December 31, 2020~~comprised 36.5% and ~~comprised~~ 33.8% ~~and 34.0%~~ of the Company’s earning assets, respectively, as of those dates.

During 2022, securities with an amortized cost of $4.1 billion and a fair value of $3.8 billion were transferred from the AFS classification to the HTM classification as the Company has the positive intent and ability to hold these securities to maturity. The transfers of securities were made at fair value at the time of transfer. See further information in Note 4, “Securities” in the Notes to the Consolidated Financial Statements.

The Company’s AFS securities portfolio comprised ~~86.7%~~52.9% of the Company’s investment securities portfolio at December 31, ~~2021,~~2022, compared to ~~87.4%~~86.7% at December 31, ~~2020.~~2021. The Company’s AFS securities portfolio provides liquidity as a result of the composition and average life of the underlying securities. This liquidity can be used to fund loan growth or to offset the outflow of traditional funding sources. The average life of the AFS securities portfolio decreased from ~~70.1 months at December 31, 2020 to~~ 67.6 months at December 31, ~~2021.~~2021 to 62.3 months at December 31, 2022. In addition to providing a potential source of liquidity, the AFS securities portfolio can be used as a tool to manage interest rate

sensitivity. The Company’s goal in the management of its AFS securities portfolio is to maximize return within the Company’s parameters of liquidity goals, interest rate risk and credit risk.

Management expects collateral pledging requirements for public funds, loan demand, and deposit funding to be the primary factors impacting changes in the level of AFS securities. There were ~~$10.2~~$10.3 billion of AFS securities pledged to secure U.S. Government deposits, other public deposits, certain trust deposits, derivative transactions, and repurchase agreements at December 31, ~~2021. Of this amount, securities with a market value of $171.2 million at December 31, 2021 were pledged at the Federal Reserve Discount Window but were unencumbered as of that date.~~2022.

The Company’s HTM securities portfolio consists of U.S. agency-backed securities, mortgage-backed securities, general obligation bonds, and private placement ~~bonds, which are issued primarily to refinance existing revenue bonds in the healthcare and education sectors, and mortgage-backed securities.~~bonds. The Company’s ~~private placement bond~~HTM portfolio, net of the ACL totaled ~~$1.1~~$5.9 billion as of December 31, ~~2021,~~2022, an increase of ~~$70.3 million, or 7.0%,~~$4.4 billion from ~~December 31, 2020. The Company’s HTM mortgage-backed securities portfolio totaled $396.1 million as of~~ December 31, 2021. The average life of the HTM portfolio was 9.3 years at December 31, 2022, compared to 5.2 years at December 31, ~~2021, compared to 6.1 years at December 31, 2020.~~2021.

The securities portfolio generates the Company’s second largest component of interest income. The AFS, HTM, and Other securities portfolios achieved an average yield on a tax-equivalent basis of ~~2.16%~~2.33% for ~~2021,~~2022, compared to ~~2.45%~~2.16% in ~~2020.~~2021. Securities available for sale had a net unrealized ~~gain~~loss of ~~$153.9~~$771.6 million at year-end, compared to a net unrealized gain of ~~$412.0~~$153.9 million the preceding year. This market value change primarily reflects the impact of a ~~larger portfolio size,~~ shorter average life and ~~declining mark~~increasing market interest rates as of December 31, ~~2021,~~2022, compared to December 31, ~~2020.~~2021. These amounts are reflected, on an after-tax basis, in the Company’s Accumulated other comprehensive income (loss) in shareholders’ equity, as an unrealized ~~gain~~loss of ~~$118.5~~$514.6 million at year-end ~~2021,~~2022, compared to an unrealized gain of ~~$314.5~~$118.5 million for ~~2020.~~2021. The AFS securities portfolio contains securities that have unrealized losses (see the table of these securities in Note 4, “Securities,” in the Notes to the Consolidated Financial Statements). The unrealized losses in the Company’s investments were caused by changes in interest rates, and not from a decline in credit of the underlying issuers. The U.S. Treasury, U.S. Agency, and ~~GSE~~Government Sponsored Entity (GSE) mortgage-backed securities are all considered to be agency-backed securities with no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. The changes in fair value in the agency-backed portfolios are solely driven by change in interest rates caused by changing economic conditions. The Company has no knowledge of any underlying credit issues and the cash flows underlying the debt securities have not changed and are not expected to be impacted by changes in interest rates. As of December 31, ~~2021,~~2022, the Company does not believe the decline in value in these portfolios is related to credit impairments and instead is due to ~~declining~~increasing market interest rates. For the State and political subdivision portfolio, the majority of the Company’s holdings are in general obligation bonds, which have a very low historical default rate due to issuers generally having unlimited taxing authority to service the debt. For the State and political, Corporates, and Collateralized loan obligations portfolios, the Company has a robust process for monitoring credit risk, including both pre-purchase and ongoing post-purchase credit reviews and analysis. The Company monitors credit ratings of all bond issuers in these segments and reviews available financial data, including market and sector trends. The Company does not have the intent to sell these securities and does not believe it is more likely than not that the Company will be required to sell these securities before a recovery of amortized cost. As of December 31, ~~2021,~~2022, there is no ACL related to the Company’s available-for-sale securities as the decline in fair value did not result from credit issues.

Included in Tables 11 and 12 are analyses of the fair value and average yield (tax-equivalent basis) of securities available for sale and securities held to maturity.

	U.S. Treasury Securities					U.S. Agency Securities					U.S. Treasury Securities					U.S. Agency Securities
December 31, 2021	Fair Value		Weighted Average Yield			Fair Value		Weighted Average Yield
December 31, 2022											Fair Value		Weighted Average Yield			Fair Value		Weighted Average Yield
Due in one year or less	$	—		—	%	$	—		—	%	$	39,041		3.07	%	$	57,796		2.71	%
Due after 1 year through 5 years		69,174		0.85			124,932		2.29			738,029		2.15			113,500		2.21
Due after 5 years through 10 years		—		—			—		—			—		—			—		—
Due after 10 years		—		—			—		—			—		—			—		—
Total	$	69,174		0.85	%	$	124,932		2.29	%	$	777,070		2.20	%	$	171,296		2.38	%

	State and Political Subdivisions					Mortgage-backed Securities					U.S. Agency Securities					Mortgage-backed Securities
December 31, 2021	Fair Value		Weighted Average Yield/Average Maturity			Fair Value		Weighted Average Yield/Average Maturity
December 31, 2022											Fair Value		Weighted Average Yield/Average Maturity			Fair Value		Weighted Average Yield/Average Maturity
Due in one year or less	$	17,797		1.60	%	$	—		—	%	$	—		—	%	$	756		1.65	%
Due after 1 year through 5 years		156,927		2.36			393,717		1.54			118,524		3.07			319,503		2.26
Due after 5 years through 10 years		481,785		2.49			—		—			—		—			1,926,672		1.67
Due over 10 years		392,165		2.08			—		—			—		—			326,136		1.69
Total	$	1,048,674		2.30	%	$	393,717		1.54	%	$	118,524		3.07	%	$	2,573,067		1.73	%

	State and Political Subdivisions					Mortgage-backed Securities					State and Political Subdivisions
December 31, 2020	Fair Value		Weighted Average Yield/Average Maturity
December 31, 2021						Fair Value		Weighted Average Yield/Average Maturity			Fair Value		Weighted Average Yield/Average Maturity
Due in one year or less	$	4,936		1.78	%	$	—		—	%	$	17,797		1.60	%
Due after 1 year through 5 years		126,901		2.30			393,717		1.54			156,927		2.36
Due after 5 years through 10 years		435,038		2.47			—		—			481,785		2.49
Due over 10 years		462,569		2.30			—		—			392,165		2.08
Total	$	1,029,444		2.37	%	$	393,717		1.54	%	$	1,048,674		2.30	%

The table below provides detailed information for Other securities at December 31, ~~2021~~2022 and ~~2020:~~2021:

	December 31,				December 31,
	2021		2020		2022		2021
FRB and FHLB stock	$	36,222	$	33,222	$	41,472	$	36,222
Equity securities with readily determinable fair values		64,149		134,197		10,782		64,149
Equity securities without readily determinable fair values		226,727		128,634		297,504		226,727
Total	$	327,098	$	296,053	$	349,758	$	327,098

Equity securities with readily determinable fair values are generally traded on an exchange and market prices are readily available. Equity securities with readily determinable fair values includes the Company’s investment in TTCF, which had a fair value of $12.5 million as of December 31, 2021 and $106.9 million as of December 31, 2020. During 2021, the Company sold a portion of this investment with a value of $79.0 million. Equity securities without readily determinable fair values are generally carried at cost less impairment. Equity securities without readily determinable fair values also include PCM alternative investments in hedge funds and private equity funds, which are accounted for as equity-method investments. During the first quarter of 2021, the Company sold its membership interest in PCM. Unrealized gains or losses on equity securities with and without readily determinable fair values are recognized in the Investment Securities gains, net line of the Company’s Consolidated Statements of Income.

For further information on the Company’s investment securities, refer to Note 4, “Securities,” in the Notes to the Consolidated Financial Statements.

Federal funds transactions essentially are overnight loans between financial institutions, which allow for either the daily investment of excess funds or the daily borrowing of another institution’s funds in order to meet short-term liquidity needs. The net borrowed position was $55.5 million at December 31, 2022 compared to $12.6 million at December 31, ~~2021 compared to $65.6 million at December 31, 2020.~~2021.

The Bank buys and sells federal funds as agent for non-affiliated banks. Because the transactions are pursuant to agency arrangements, these transactions do not appear on the balance sheet and averaged $262.9 million in 2022 and $394.7 million in ~~2021 and $362.5 million in 2020.~~2021.

At December 31, ~~2021,~~2022, the Company held securities purchased under agreements to resell of ~~$1.2 billion~~$951.6 million compared to ~~$1.7~~$1.2 billion at December 31, ~~2020.~~2021. The Company uses these instruments as short-term secured investments, in lieu of selling federal funds, or to acquire securities required for collateral purposes. Balances will fluctuate based on the Company’s liquidity and investment decisions as well as the Company’s correspondent bank borrowing levels. These investments averaged $959.2 million in 2022 and $1.2 billion in ~~2021 and $1.1 billion in 2020.~~2021.

The Company also maintains an active securities trading inventory. The average holdings in the securities trading inventory in ~~2021~~2022 were ~~$23.5~~$12.1 million, compared to ~~$37.1~~$23.5 million in ~~2020,~~2021, and were recorded at fair market value. As discussed in “Quantitative and Qualitative Disclosures About Market Risk – Trading Account” in Part II, Item 7A, the Company offsets the trading account securities by the sale of exchange-traded financial futures contracts, with both the trading account and futures contracts marked to market daily.

Interest-bearing due from banks totaled $1.2 billion as of December 31, 2022 compared to $8.8 billion as of December 31, 2021 ~~compared to $3.1 billion as of December 31, 2020~~ and includes amounts due from the FRB and interest-bearing accounts held at other financial institutions. The amount due from the FRB averaged ~~$4.0~~$2.3 billion and ~~$1.2~~$4.0 billion during the years ended December 31, ~~2021~~2022 and ~~2020,~~2021, respectively. The ~~increase~~decrease in the FRB balance from ~~2020~~2021 to ~~2021~~2022 is primarily due to ~~an increase~~a decrease in deposit ~~balances as a result of the Company’s participation in the PPP.~~balances. The interest-bearing accounts held at other financial institutions totaled ~~$41.2~~$121.7 million and ~~$43.1~~$41.2 million at December 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

Deposits represent the Company’s primary funding source for its asset base. In addition to the core deposits garnered by the Company’s retail branch structure, the Company continues to focus on its cash management services, as well as its asset management and mutual fund servicing businesses in order to attract and retain additional core deposits. Deposits totaled $32.6 billion at December 31, 2022 and $35.6 billion at December 31, 2021, ~~and $27.1 billion at December 31, 2020, an increase~~a decrease of ~~$8.5~~$3.0 billion, or ~~31.6%~~8.3%. Deposits averaged $31.3 billion in 2022, and $28.9 billion in ~~2021, and $23.2 billion in 2020.~~2021.

Noninterest-bearing demand deposits averaged $13.3 billion in 2022 and $11.3 billion in ~~2021 and $7.8 billion in 2020.~~2021. These deposits represented ~~38.9%~~42.3% of average deposits in ~~2021,~~2022, compared to ~~33.8%~~38.9% in ~~2020.~~2021. The Company’s large commercial customer base provides a significant source of noninterest-bearing deposits. Many of these commercial accounts do not earn interest; however, they receive an earnings credit to offset the cost of other services provided by the Company.

	December 31,				December 31,
	2021		2020		2022		2021
Maturing within 3 months	$	318,112	$	269,489	$	389,367	$	318,112
After 3 months but within 6 months		8,616		16,596		39,651		8,616
After 6 months but within 12 months		46,839		32,526		28,446		46,839
After 12 months		19,664		17,486		9,837		19,664
Total	$	393,231	$	336,097	$	467,301	$	393,231

As of December 31, ~~2021,~~2022, there were ~~$27.4~~$24.7 billion of uninsured deposits, as compared to ~~$19.7~~$27.4 billion as of December 31, ~~2020.~~2021.

	December 31,						December 31,
	2021			2020			2022			2021
Amount:
Noninterest-bearing demand	$	11,254,761		$	7,845,667		$	13,264,146		$	11,254,761
Interest-bearing demand and savings		16,982,864			14,446,164			17,332,972			16,982,864
Time deposits under $250,000		242,017			488,346			95,013			242,017
Total core deposits		28,479,642			22,780,177			30,692,131			28,479,642
Time deposits of $250,000 or more		453,241			401,982			635,513			453,241
Total deposits	$	28,932,883		$	23,182,159		$	31,327,644		$	28,932,883

As a % of total deposits:
Noninterest-bearing demand		38.9	%		33.9	%		42.4	%		38.9	%
Interest-bearing demand and savings		58.7			62.3			55.3			58.7
Time deposits under $250,000		0.8			2.1			0.3			0.8
Total core deposits		98.4			98.3			98.0			98.4
Time deposits of $250,000 or more		1.6			1.7			2.0			1.6
Total deposits		100.0	%		100.0	%		100.0	%		100.0	%

The Company places a significant emphasis on the maintenance of a strong capital position, which it believes promotes investor confidence, provides access to funding sources under favorable terms, and enhances the Company’s ability to capitalize on business growth and acquisition opportunities. Higher levels of liquidity, however, bear corresponding costs, measured in terms of lower yields on short-term, more liquid earning assets, and higher expenses for extended liability maturities. The Company manages capital for each subsidiary based upon the subsidiary’s respective risks and growth opportunities as well as regulatory requirements.

Total shareholders’ equity ~~increased $128.5~~decreased $478.3 million, or ~~4.3%~~15.2% to ~~$3.1~~$2.7 billion at December 31, ~~2021~~2022 as compared to December 31, ~~2020.~~2021. The decrease in shareholders’ equity from 2021 to 2022 is largely due to a decrease in Accumulated other comprehensive income (AOCI) related to the increase in losses on the securities portfolio driven by increased market interest rates.

The Board authorized, at its April 26, 2022, April 27, 2021, and April 28, 2020 ~~and April 23, 2019~~ meetings, the repurchase of up to two million shares of the Company’s common stock during the twelve months following each meeting (each a Repurchase Authorization). During ~~2021~~2022 and ~~2020,~~2021, the Company acquired ~~67,671~~333,185 shares and ~~1,208,623~~67,671 shares, respectively, of its common stock pursuant to the applicable Repurchase Authorization. During March 2020, the Company entered into an agreement with Bank of America Merrill Lynch (BAML) to repurchase an aggregate of $30.0 million of the Company’s common stock through an accelerated share repurchase agreement (ASR). Under the ASR, the Company repurchased a total of 653,498 shares, which was completed during the second quarter of 2020. The ASR was entered into pursuant to the April 23, 2019 Repurchase Authorization. The Company has not made any repurchase of its securities other than pursuant to the Repurchase Authorizations.

Risk-based capital guidelines established by regulatory agencies set minimum capital standards based on the level of risk associated with a financial institution’s assets. The Company has implemented the Basel III regulatory capital rules adopted by the FRB. Basel III capital rules include a minimum ratio of common equity tier 1 capital to risk-weighted assets of 4.5% and a minimum tier 1 risk-based capital ratio of 6%. A financial institution’s total capital is also required to equal at least 8% of risk-weighted assets.

The risk-based capital guidelines indicate the specific risk weightings by type of asset. Certain off-balance sheet items (such as standby letters of credit and binding loan commitments) are multiplied by credit conversion factors to translate them into balance sheet equivalents before assigning them specific risk weightings. The Company is also required to maintain a leverage ratio equal to or greater than 4%. The leverage ratio is tier 1 core

capital to total average assets less goodwill and intangibles. The Company's capital position as of December 31, ~~2021~~2022 is summarized in the table below and exceeded regulatory requirements.

This table computes risk-based capital in accordance with current regulatory guidelines. These guidelines as of December 31, ~~2021,~~2022, excluded net unrealized gains or losses on securities available for sale and net unrealized losses on securities held to maturity transferred from the available-for-sale category from the computation of regulatory capital and the related risk-based capital ratios.

	Risk-Weighted Category												Risk-Weighted Category
	0%		20%		50%		100%		150%		Total		0%		20%		50%		100%		150%		Total
Risk-Weighted Assets
Loans held for sale	$	—	$	—	$	1,277	$	—	$	—	$	1,277	$	—	$	—	$	1,978	$	—	$	—	$	1,978
Loans and leases		197,502		56,444		2,034,309		14,787,721		94,895		17,170,871		62,586		57,770		2,385,357		18,450,411		75,065		21,031,189
Securities available for sale		1,912,659		9,579,777		13,307		316,840		—		11,822,583		2,204,211		5,165,476		7,203		401,060		—		7,777,950
Securities held to maturity		206,368		209,778		1,064,270		—		—		1,480,416		489,066		4,473,882		1,145,687		—		—		6,108,635
Federal funds and resell agreements														—		7,000		—		—		—		7,000
Trading securities		1,625		4,219		21,671		4,360		—		31,875		580		7,558		8,038		1,804		—		17,980
Cash and due from banks		8,901,154		354,573		—		—		—		9,255,727		1,129,382		550,405		—		—		—		1,679,787
All other assets		26,394		24,465		35,457		1,424,229		—		1,510,545		33,981		30,250		35,164		1,715,602		—		1,814,997
Category totals	$	11,245,702	$	10,229,256	$	3,170,291	$	16,533,150	$	94,895	$	41,273,294	$	3,919,806	$	10,292,341	$	3,583,427	$	20,568,877	$	75,065	$	38,439,516

Risk-weighted totals	$	—	$	2,045,851	$	1,585,146	$	16,533,150	$	142,343	$	20,306,490	$	—	$	2,058,468	$	1,791,714	$	20,568,877	$	112,598	$	24,531,657
Off-balance-sheet items ⁽³⁾		—		14,395		41,195		3,592,832		—		3,648,422		—		64,090		86,383		4,732,651		49,497		4,932,621
Total risk-weighted assets	$	—	$	2,060,246	$	1,626,341	$	20,125,982	$	142,343	$	23,954,912	$	—	$	2,122,558	$	1,878,097	$	25,301,528	$	162,095	$	29,464,278

	Total			Total
Regulatory Capital
Shareholders’ equity	$	3,145,424		$	2,667,093
Less adjustments ⁽¹⁾		(259,848	)		461,937
Common equity Tier 1/Tier 1 capital		2,885,576			3,129,030
Additional Tier 2 capital ⁽²⁾		438,708			553,589
Total capital	$	3,324,284		$	3,682,619

For further discussion of regulatory capital requirements, see Note 10, “Regulatory Requirements” within the Notes to Consolidated Financial Statements under Item 8.

Repurchase agreements are transactions involving the exchange of investment funds by the customer for securities by the Company, under an agreement to repurchase the same issues at an agreed-upon price and date.

Securities sold under agreements to repurchase and federal funds purchased totaled $2.2 billion at December 31, 2022, and $3.2 billion at December 31, ~~2021, and $2.3 billion at December 31, 2020.~~2021. Repurchase agreements and federal funds purchased averaged $2.8 billion in 2022 and $2.6 billion in ~~2021 and $2.0 billion in 2020.~~2021. The Company enters into these transactions with its downstream correspondent banks, commercial customers, and various trust, mutual fund, and local government relationships.

The Company is a member bank with the FHLB of Des Moines, and through this relationship, the Company owns $10.0 million of FHLB stock and has access to additional liquidity and funding sources through FHLB advances. The Company’s borrowing capacity is dependent upon the amount of collateral the Company places at the FHLB. Based on the collateral pledged, the Company had ~~$1.6~~$1.9 billion of borrowing capacity at the FHLB at December 31, ~~2021.~~2022. The Company had no outstanding advances at FHLB Des Moines as of December 31, ~~2021.~~ 2022.

To enhance general working capital needs, the Company has a revolving line of credit with Wells Fargo Bank, N.A. which allows the Company to borrow up to $30.0 million for general working capital purposes. The interest rate applied to borrowed balances will be at the Company’s option, either ~~1.25%~~1.4% above ~~LIBOR~~SOFR or 1.75% below the prime rate on the date of an advance. The Company pays a 0.4% unused commitment fee for unused portions of the line of credit. The Company had no advances outstanding at December 31, ~~2021.~~2022.

Long-term debt totaled $381.3 million at December 31, 2022, compared to $271.5 million at December 31, ~~2021, compared~~2021. In September 2022, the Company issued $110.0 million in aggregate subordinated notes due in September 2032. The Company received $107.9 million, after deducting underwriting discounts and commissions and offering expenses, and used the proceeds from the offering for general corporate purposes, including, among other uses, contributing Tier 1 capital into the Bank. The subordinated notes were issued with a fixed-to-fixed rate of 6.25% and an effective rate of 6.64% due to ~~$269.6 million at December 31, 2020.~~ issuance costs, with an interest rate reset date of September 2027.

In September 2020, the Company issued $200.0 million in aggregate subordinated notes due in September 2030. The Company received $197.7 million, after deducting underwriting discounts and commissions and offering expenses, and used the proceeds from the offering for general corporate purposes, including, among other uses, contributing Tier 1 capital into the Bank. The subordinated notes were issued with a fixed-to-fixed rate of 3.70% and an effective rate of 3.93%, due to issuance costs, with an interest rate reset date of September 2025.

The remainder of the Company’s long-term debt was assumed from the acquisition of Marquette Financial Companies in 2015 and consists of debt obligations payable to four unconsolidated trusts (Marquette Capital Trust I, Marquette Capital Trust II, Marquette Capital Trust III, and Marquette Capital Trust IV) that previously issued trust preferred securities. These long-term debt obligations had an aggregate contractual balance of $103.1 million and had a carrying value of $74.6 million at December 31, 2022 and $73.2 million at December 31, ~~2021 and $71.7 million at December 31, 2020.~~2021. Interest rates on trust preferred securities are tied to the three-month LIBOR with spreads ranging from 133 basis points to 160 basis points and reset quarterly. The trust preferred securities have maturity dates ranging from January 2036 to September 2036. For further information on long-term debt refer to Note 9, “Borrowed Funds,” in the Notes to the Consolidated Financial Statements.

The Company has material off-balance sheet arrangements in the form of loan commitments, commercial and standby letters of credit, futures contracts and forward exchange contracts, which have maturity dates rather than payment due dates. These commitments and contingent liabilities are not required to be recorded on the Company’s balance sheet. Since commitments associated with letters of credit and lending and financing arrangements may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. See Table 17 below, as well as Note 15, “Commitments, Contingencies and Guarantees” in the Notes to Consolidated Financial Statements under Item 8 for detailed information and further discussion of these arrangements. Management does not anticipate any material losses from its off-balance sheet arrangements.

COMMITMENTS, MATERIAL CASH REQUIREMENTS AND OFF-BALANCE SHEET ARRANGEMENTS (in thousands)

The table below details the commitments, material cash requirements, and off-balance sheet arrangements for the Company as of December 31, ~~2021~~2022 and includes principal payments only. The Company has no capital leases or long-term purchase obligations.

	Payments due by Period										Payments due by Period
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years		Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Material Cash Requirements
Federal funds purchased and repurchase agreements	$	3,225,838	$	3,225,588	$	—	$	—	$	250	$	2,222,167	$	2,222,167	$	—	$	—	$	—
Long-term debt obligations		273,213		—		—		—		273,213		384,553		—		—		—		384,553
Operating lease obligations		72,238		12,398		20,100		16,375		23,365		70,988		12,278		21,657		17,623		19,430
Time deposits		851,641		734,551		92,044		20,910		4,136		917,138		809,410		85,791		17,244		4,693
Total	$	4,422,930	$	3,972,537	$	112,144	$	37,285	$	300,964	$	3,594,846	$	3,043,855	$	107,448	$	34,867	$	408,676

	Maturities due by Period										Maturities due by Period
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years		Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Commitments, Contingencies and Guarantees
Commitments to extend credit for loans (excluding credit card loans)	$	10,122,617	$	4,246,041	$	3,906,483	$	1,270,424	$	699,669	$	12,988,231	$	5,118,670	$	4,703,332	$	2,458,066	$	708,163
Commitments to extend credit under credit card loans		3,743,165		3,743,165		—		—		—		4,008,386		4,008,386		—		—		—
Commercial letters of credit		2,754		2,754		—		—		—		3,334		3,334		—		—		—
Standby letters of credit		365,030		264,424		83,809		16,797		—		436,965		318,005		100,695		18,265		—
Forward contracts		9,729		9,729		—		—		—		32,552		32,552		��		—		—
Spot foreign exchange contracts		2,946		2,946		—		—		—		5,112		5,112		—		—		—
Total	$	14,246,241	$	8,269,059	$	3,990,292	$	1,287,221	$	699,669	$	17,474,580	$	9,486,059	$	4,804,027	$	2,476,331	$	708,163

As of December 31, ~~2021,~~2022, the Company’s total liabilities for unrecognized tax benefits were ~~$8.8~~$9.4 million. The Company cannot reasonably estimate the settlement of these liabilities. Therefore, these liabilities have been excluded from the table above. See Note 16, “Income Taxes,” in the Notes to the Consolidated Financial Statements for information regarding the liabilities associated with unrecognized tax benefits.

For further discussion of capital and liquidity, see the “Quantitative and Qualitative Disclosures about Market Risk – Liquidity Risk” in Item 7A of this report.

Management’s Discussion and Analysis of Financial Condition and Results of Operations discusses the Company’s Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The preparation of these Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to customers and suppliers, allowance for credit losses, bad debts, investments, financing operations, long-lived assets, taxes, other contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which have formed the basis for making such judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Under different assumptions or conditions, actual results may differ from the recorded estimates.

Management believes that the Company’s critical accounting policies and estimates are those relating to the allowance for credit losses.

The Company’s ACL represents management’s judgment of the total expected losses included in the Company’s assets held at amortized cost. The Company’s process for recording the ACL is based on the evaluation of the Company’s lifetime historical loss experience, management’s understanding of the credit quality inherent in the loan portfolio, and the impact of the current economic environment, coupled with reasonable and supportable economic forecasts.

A mathematical calculation of an estimate is made to assist in determining the adequacy and reasonableness of management’s recorded ACL. To develop the estimate, the Company follows the guidelines in ASC Topic 326, Financial Instruments – Credit Losses. The estimate reserves for assets held at amortized cost, which include the Company’s loan and held-to-maturity security portfolios.

The estimation process involves the consideration of quantitative and qualitative factors relevant to the specific segmentation of loans. These factors have been established over decades of financial institution experience and include economic observation and loan loss characteristics. This process is designed to produce a lifetime estimate of the losses, at a reporting date, that is based on evaluation of historical loss experience, current economic

conditions, reasonable and supportable forecasts, and the qualitative framework outlined by the Office of the Comptroller of the Currency in the published 2020 Interagency Policy Statement. This process allows management to take a holistic view of the recorded ACL reserve and ensure that all significant and pertinent information is considered in its estimate.

The ending result of this process is a recorded consolidated ACL that represents management’s best estimate of the total expected losses included in the loan and held-to-maturity security portfolios considering available information, from internal and external sources, relevant to assessing exposure to credit loss over the contractual term of the instrument. While management utilizes its best judgment and information available, the ultimate adequacy of the ACL is dependent upon a variety of factors beyond the Company’s control, including the performance of its portfolios, the economy, and changes in interest rates. As such, significant downturns in circumstances relating to loan quality and economic conditions could result in a requirement for additional allowance. Likewise, an upturn in loan quality and improved economic conditions may allow a reduction in the required allowance. In either instance, unanticipated changes could have a significant impact on the Company’s Provision for credit losses and ACL reported in its Consolidated Income Statements and Consolidated Balance Sheets, respectively.

For more information on loan portfolio segments, the Company’s ACL methodology, and management’s assumptions in estimating the ACL, refer to the section captioned “Allowance for Credit Losses” within Note 3, “Loans and Allowance for Credit Losses,” in the Notes to the Consolidated Financial Statements.

Market risk is a broad term for the risk of economic loss due to adverse changes in the fair value of a financial instrument. These changes may be the result of various factors, including interest rates, foreign exchange prices, commodity prices, or equity prices. Financial instruments that are subject to market risk can be classified either as held for trading or held for purposes other than trading.

The Company is subject to market risk primarily through the effect of changes in interest rates of its assets held for purposes other than trading. The following discussion of interest rate risk, however, combines instruments held for trading and instruments held for purposes other than trading because the instruments held for trading represent such a small portion of the Company’s portfolio that the interest rate risk associated with them is immaterial.

In the banking industry, a major risk exposure is changing interest rates. To minimize the effect of interest rate changes to net interest income and exposure levels to economic losses, the Company manages its exposure to changes in interest rates through asset and liability management within guidelines established by its Asset Liability Committee (ALCO) and approved by the Board. The ALCO is responsible for approving and ensuring compliance with asset/liability management policies, including interest rate exposure. The Company’s primary method for measuring and analyzing consolidated interest rate risk is the Net Interest Income Simulation Analysis. The Company also uses a Net Portfolio Value model to measure market value risk under various rate change scenarios and a gap analysis to measure maturity and repricing relationships between interest-earning assets and interest-bearing liabilities at specific points in time. On a limited basis, the Company uses hedges such as swaps, rate floors, and futures contracts to manage interest rate risk on certain loans, trading securities, trust preferred securities, and deposits. See further information in Note 17 “Derivatives and Hedging Activities” in the Notes to the Company’s Consolidated Financial Statements.

Overall, the Company attempts to manage interest rate risk by positioning the balance sheet to maximize net interest income while maintaining an acceptable level of interest rate and credit risk, remaining mindful of the relationship among profitability, liquidity, interest rate risk and credit risk.

The Company’s primary interest rate risk tool, the Net Interest Income Simulation Analysis, measures interest rate risk and the effect of interest rate changes on net interest income and net interest margin. This analysis incorporates all of the Company’s assets and liabilities together with assumptions that reflect the current interest rate environment. Through these simulations, management estimates the impact on net interest income of a ~~300 basis point~~300-basis-point upward or a ~~100 basis point~~100-basis-point downward gradual change (e.g. ramp) and immediate change (e.g. shock) of market interest rates over a ~~two year~~two-year period. In ramp scenarios, rates change gradually for a ~~one year~~one-year period and remain constant in year two. In shock scenarios, rates change immediately and the change is sustained for the remainder of the two year scenario horizon. Assumptions are made to project rates for new loans and deposits based on historical analysis, management outlook and repricing strategies. Asset prepayments and other market risks are developed from industry estimates of prepayment speeds and other market changes. The results of these simulations can be significantly influenced by assumptions utilized and management evaluates the sensitivity of the simulation results on a regular basis.

Table 18 shows the net interest income percentage increase or decrease over the next twelve- and twenty-four-month periods as of December 31, ~~2021~~2022 and ~~2020~~2021 based on hypothetical changes in interest rates and a constant sized balance sheet with runoff being replaced.

	Hypothetical change in interest rate – Rate Ramp												Hypothetical change in interest rate – Rate Ramp
	Year One						Year Two						Year One						Year Two
	December 31, 2021			December 31, 2020			December 31, 2021			December 31, 2020			December 31, 2022			December 31, 2021			December 31, 2022			December 31, 2021
(basis points)	Percentage change			Percentage change			Percentage change			Percentage change			Percentage change			Percentage change			Percentage change			Percentage change
300		5.9	%		1.6	%		22.1	%		14.1	%		(1.4	)%		5.9	%		10.6	%		22.1	%
200		3.7			0.9			14.9			9.7			(1.1	)		3.7			7.1			14.9
100		1.5			0.3			7.3			5.0			(0.4	)		1.5			3.6			7.3
Static		—			—			—			—			—			—			—			—
(100)		(3.0	)		(1.9	)		(9.7	)		(5.7	)		0.4			(3.0	)		(3.8	)		(9.7	)

	Hypothetical change in interest rate – Rate Shock												Hypothetical change in interest rate – Rate Shock
	Year One						Year Two						Year One						Year Two
	December 31, 2021			December 31, 2020			December 31, 2021			December 31, 2020			December 31, 2022			December 31, 2021			December 31, 2022			December 31, 2021
(basis points)	Percentage change			Percentage change			Percentage change			Percentage change			Percentage change			Percentage change			Percentage change			Percentage change
300		11.2	%		4.0	%		22.5	%		15.9	%		3.5	%		11.2	%		14.1	%		22.5	%
200		7.2			2.7			15.2			11.3			2.4			7.2			9.5			15.2
100		3.1			1.1			7.5			6.1			1.2			3.1			4.8			7.5
Static		—			—			—			—			—			—			—			—
(100)		(6.2	)		(3.4	)		(12.2	)		(6.3	)		(1.3	)		(6.2	)		(5.0	)		(12.2	)

The Company is positioned ~~slightly asset sensitive~~relatively neutral to changes in interest rates in the next year. Net interest income is predicted to increase in all upward rate ~~ramp~~shock scenarios and ~~shock~~decrease in all upward rate ramp scenarios. In down rate scenarios, net interest income is predicted to decrease in ~~all~~shock scenarios and increase in ramp scenarios. The ~~increase~~largest change in net interest income relative to base in ~~rising~~either rate shock or ramp scenarios is ~~due to the projections of yields on earning assets increasing more~~less than ~~the cost of paying liabilities.~~5% in year one. In year two, net interest income is predicted to rise in all increasing rate scenarios and decrease in falling rate scenarios. The Company’s ability to price deposits ~~in a rising rate environment~~ consistent with its history is a key assumption in these scenarios.

The Company also evaluates its interest rate sensitivity position in an attempt to maintain a balance between the amount of interest-bearing assets and interest-bearing liabilities which are expected to mature or reprice at any point in time. While a traditional repricing mismatch analysis (gap analysis) provides a snapshot of interest rate risk, it does not take into consideration that assets and liabilities with similar repricing characteristics may not, in fact, reprice at the same time or the same degree. Also, it does not necessarily predict the impact of changes in general levels of interest rates on net interest income.

Table 19 is a static gap analysis, which presents the Company’s assets and liabilities, based on their repricing or maturity characteristics and reflecting principal amortization. Table 20 presents the break-out of fixed and variable rate loans by repricing or maturity characteristics for each loan class.

	1-90			91-180			181-365						1-5			Over 5						1-90			91-180			181-365						1-5			Over 5
	Days			Days			Days			Total			Years			Years			Total			Days			Days			Days			Total			Years			Years			Total
December 31, 2021 Earning assets
December 31, 2022 Earning assets
Loans	$	9,246.7		$	695.9		$	794.0		$	10,736.6		$	4,383.1		$	2,052.4		$	17,172.1		$	12,635.3		$	748.9		$	1,196.5		$	14,580.7		$	4,571.3		$	1,881.2		$	21,033.2
Securities		988.7			427.2			845.3			2,261.2			5,650.7			5,872.1			13,784.0			929.3			397.7			613.6			1,940.6			5,377.7			5,899.4			13,217.7
Federal funds sold and resell agreements		1,216.4			—			—			1,216.4			—			—			1,216.4			958.6			—			—			958.6			—			—			958.6
Other		8,873.8			—			—			8,873.8			—			—			8,873.8			1,197.1			—			—			1,197.1			—			—			1,197.1
Total earning assets	$	20,325.6		$	1,123.1		$	1,639.3		$	23,088.0		$	10,033.8		$	7,924.5		$	41,046.3		$	15,720.3		$	1,146.6		$	1,810.1		$	18,677.0		$	9,949.0		$	7,780.6		$	36,406.6
% of total earning assets		49.6	%		2.7	%		4.0	%		56.3	%		24.4	%		19.3	%		100.0	%		43.2	%		3.1	%		5.0	%		51.3	%		27.3	%		21.4	%		100.0	%
Funding sources
Interest-bearing demand and savings	$	3,069.6		$	2,302.2		$	4,604.4		$	9,976.2		$	688.1		$	7,741.3		$	18,405.6		$	18,461.6		$	—		$	—		$	18,461.6		$	—		$	—		$	18,461.6
Time deposits		418.9			125.1			190.5			734.5			113.0			4.1			851.6			474.3			173.9			161.2			809.4			103.0			4.7			917.1
Federal funds purchased and repurchase agreements		3,238.4			—			—			3,238.4			—			—			3,238.4			2,222.2			—			—			2,222.2			—			—			2,222.2
Borrowed funds		73.2			—			—			73.2			198.3			—			271.5			74.6			—			—			74.6			306.7			—			381.3
Noninterest-bearing sources		7,277.5			328.5			611.9			8,217.9			3,161.2			6,900.1			18,279.2			5,238.9			282.2			520.6			6,041.7			2,967.2			5,415.5			14,424.4
Total funding sources	$	14,077.6		$	2,755.8		$	5,406.8		$	22,240.2		$	4,160.6		$	14,645.5		$	41,046.3		$	26,471.6		$	456.1		$	681.8		$	27,609.5		$	3,376.9		$	5,420.2		$	36,406.6
% of total earning assets		34.3	%		6.7	%		13.2	%		54.2	%		10.1	%		35.7	%		100.0	%		72.7	%		1.2	%		1.9	%		75.8	%		9.3	%		14.9	%		100.0	%
Interest sensitivity gap	$	6,248.0		$	(1,632.7	)	$	(3,767.5	)	$	847.8		$	5,873.2		$	(6,721.0	)				$	(10,751.3	)	$	690.5		$	1,128.3		$	(8,932.5	)	$	6,572.1		$	2,360.4
Cumulative gap		6,248.0			4,615.3			847.8			847.8			6,721.0			—						(10,751.3	)		(10,060.8	)		(8,932.5	)		(8,932.5	)		(2,360.4	)		—
As a % of total earning assets		15.3	%		11.3	%		2.1	%		2.1	%		16.4	%		—	%					(29.5	)%		(27.6	)%		(24.5	)%		(24.5	)%		(6.5	)%		—	%
Ratio of earning assets to funding sources		1.44			0.41			0.30			1.04			2.41			0.54						0.59			2.51			2.65			0.68			2.95			1.44
Cumulative ratio of earning assets to funding sources
2022																							0.59			0.63			0.68			0.68			0.92			1.00
2021		1.44			1.27			1.04			1.04			1.25			1.00						1.44			1.27			1.04			1.04			1.25			1.00
2020		1.51			1.30			1.03			1.03			1.27			1.00

This table details loan maturities by variable and fixed rates as of December 31, ~~2021~~2022 (in thousands):

	Due in one year or less		Due after one year through five years		Due after five years through fifteen years		Due after fifteen years		Total		Due in one year or less		Due after one year through five years		Due after five years through fifteen years		Due after fifteen years		Total
Variable Rate
Commercial and industrial	$	4,789,479	$	101,821	$	6,436	$	—	$	4,897,736	$	6,180,115	$	15,362	$	626	$	—	$	6,196,103
Specialty lending		467,243		—		—		—		467,243		602,706		—		—		—		602,706
Commercial real estate		2,857,496		138,524		17,269		—		3,013,289		4,012,740		106,329		11,738		—		4,130,807
Consumer real estate		326,409		269,314		329,510		—		925,233		297,029		248,932		562,379		—		1,108,340
Consumer		67,638		143		—		—		67,781		64,118		64		—		—		64,182
Credit cards		389,119		2,270		—		—		391,389		430,114		1,558		—		—		431,672
Leases and other		252,275		1,631		—		—		253,906		258,137		217		—		—		258,354
Total variable rate loans		9,149,659		513,703		353,215		—		10,016,577		11,844,959		372,462		574,743		—		12,792,164

Fixed Rate
Commercial and industrial		620,260		1,490,177		249,891		56		2,360,384		1,183,657		1,650,996		168,853		6,377		3,009,883
Specialty lending		55,119		—		—		—		55,119		—		—		—		—		—
Commercial real estate		702,040		1,804,996		746,559		660		3,254,255		1,299,512		1,883,108		302,636		23		3,485,279
Consumer real estate		188,619		510,996		540,461		156,001		1,396,077		202,586		590,812		614,158		209,351		1,616,907
Consumer		17,225		43,416		713		—		61,354		28,530		51,983		971		—		81,484
Credit cards		—		—		—		—		—		—		—		—		—		—
Leases and other		3,692		19,783		4,907		—		28,382		21,455		21,965		4,030		—		47,450
Total fixed rate loans		1,586,955		3,869,368		1,542,531	��	156,717		7,155,571		2,735,740		4,198,864		1,090,648		215,751		8,241,003
Total loans and loans held for sale	$	10,736,614	$	4,383,071	$	1,895,746	$	156,717	$	17,172,148	$	14,580,699	$	4,571,326	$	1,665,391	$	215,751	$	21,033,167

The Bank carries taxable governmental securities in a trading account that is maintained in accordance with Board-approved policy and procedures. The policy limits the amount and type of securities that can be carried in the trading account and requires compliance with any limits under applicable law and regulations and mandates the use of a value-at-risk methodology to manage price volatility risks within financial parameters. The risk associated with the carrying of trading securities is offset by the sale of exchange-traded financial futures contracts, with both the trading account and futures contracts marked to market daily. This account had a balance of $18.0 million as of December 31, 2022, compared to $31.9 million as of December 31, ~~2021, compared to $35.0 million as of December 31, 2020.~~2021.

The Company is subject to market risk primarily through the effect of changes in interest rates of its assets held for purposes other than trading. The discussion in Table 19 above of interest rate risk, however, combines instruments held for trading and instruments held for purposes other than trading, because the instruments held for trading represent such a small portion of the Company’s portfolio that the interest rate risk associated with them is immaterial.

The Company has minimal foreign currency risk as a result of foreign exchange contracts. See Note 10, “Commitments, Contingencies and Guarantees” in the Notes to the Consolidated Financial Statements.

Credit risk represents the risk that a customer or counterparty may not perform in accordance with contractual terms. The Company utilizes a centralized credit administration function, which provides information on the Bank’s risk levels, delinquencies, an internal risk grading system and overall credit exposure. Loan requests are centrally

reviewed to ensure the consistent application of the loan policy and standards. In addition, the Company has an internal loan review staff that operates independently of the Bank. This review team performs periodic examinations of the Bank’s loans for credit quality, documentation and loan administration. The respective regulatory authority of the Bank also reviews loan portfolios.

A primary indicator of credit quality and risk management is the level of nonperforming loans. Nonperforming loans include both nonaccrual loans and restructured loans on nonaccrual. The Company’s nonperforming loans ~~increased $4.5~~decreased $73.0 million to ~~$92.3~~$19.3 million at December 31, ~~2021,~~2022, compared to December 31, ~~2020.~~2021. There was an immaterial amount of interest recognized on nonperforming loans during 2022, 2021, ~~2020,~~ and ~~2019.~~2020.

The Company had ~~$4.7 million~~$68 thousand of other real estate owned as of December 31, ~~2020.~~2022. Loans past due more than 90 days and still accruing interest totaled $1.6 million as of December 31, 2022, compared to $2.6 million as of December 31, ~~2021, compared to $2.0 million as of December 31, 2020.~~2021.

A loan is generally placed on nonaccrual status when payments are past due 90 days or more and/or when management has considerable doubt about the borrower’s ability to repay on the terms originally contracted. The accrual of interest is discontinued and recorded thereafter only when actually received in cash.

Certain loans are restructured to provide a reduction or deferral of interest or principal due to deterioration in the financial condition of the respective borrowers. The Company had ~~$7.3~~$5.2 million of restructured loans at December 31, ~~2021~~2022 and ~~$10.8~~$7.3 million at December 31, ~~2020. Those loans modified as part of the Company’s response to the COVID-19 pandemic are not considered to be restructured loans and are discussed further below~~2021.

	December 31,						December 31,
	2021			2020			2022			2021
Nonaccrual loans	$	85,207		$	77,764		$	16,838		$	85,207
Restructured loans on nonaccrual		7,093			10,059			2,431			7,093
Total non-performing loans		92,300			87,823			19,269			92,300
Other real estate owned		—			4,740			68			—
Total non-performing assets	$	92,300		$	92,563		$	19,337		$	92,300

Loans past due 90 days or more	$	2,633		$	1,952		$	1,617		$	2,633
Restructured loans accruing		189			706			2,790			189
Allowance for credit losses on loans		194,771			215,973			191,836			194,771
Ratios
Non-performing loans as a % of loans		0.54	%		0.55	%		0.09	%		0.54	%
Non-performing assets as a % of loans plus other real estate owned		0.54			0.57			0.09			0.54
Non-performing assets as a % of total assets		0.22			0.28			0.05			0.22
Loans past due 90 days or more as a % of loans		0.02			0.01			0.01			0.02
Allowance for credit losses on loans as a % of loans		1.13			1.34			0.91			1.13
Allowance for credit losses on loans as a multiple of non-performing loans	2.11x			2.46x			9.96x			2.11x

	2021								2020							2022								2021
	Net Charge-Offs (Recoveries)			Average Loans Outstanding		Net Charge-Offs (Recoveries) to Average Loans Outstanding			Net Charge-Offs		Average Loans Outstanding		Net Charge-Offs to Average Loans Outstanding			Net Charge-Offs (Recoveries)			Average Loans Outstanding		Net Charge-Offs (Recoveries) to Average Loans Outstanding			Net Charge-Offs (Recoveries)			Average Loans Outstanding		Net Charge-Offs (Recoveries) to Average Loans Outstanding
At December 31:
Commercial and industrial	$	7,287		$	7,160,288		0.10	%	$	2,114	$	6,724,655		0.03	%	$	35,719		$	8,160,147		0.44	%	$	7,287		$	7,160,288		0.10	%
Specialty lending		31,758			494,637		6.42			—		486,214		—			(433	)		525,697		(0.08	)		31,758			494,637		6.42
Commercial real estate		(362	)		6,161,097		(0.01	)		11,848		5,553,394		0.21			(356	)		6,784,082		(0.01	)		(362	)		6,161,097		(0.01	)
Consumer real estate		(46	)		2,111,948		—			150		1,634,678		0.01			(74	)		2,512,597		—			(46	)		2,111,948		—
Consumer real estate		2,201			113,377		1.94			300		139,063		0.22			674			146,949		0.46			2,201			113,377		1.94
Credit cards		4,044			390,804		1.03			5,708		381,354		1.50			4,338			431,003		1.01			4,044			390,804		1.03
Leases and other		(10	)		186,199		(0.01	)		5		190,034		—			—			261,941		—			(10	)		186,199		(0.01	)
Total	$	44,872		$	16,618,350		0.27	%	$	20,125	$	15,109,392		0.13	%	$	39,868		$	18,822,416		0.21	%	$	44,872		$	16,618,350		0.27	%

Net charge-offs for the year ended December 31, ~~2021~~2022 were ~~$44.9~~$39.9 million, compared to ~~$20.1~~$44.9 million for the year ended December 31, ~~2020. The increase in net charge-offs during 2021 is primarily due to one credit in the specialty lending portfolio which had a charge-off of $31.9 million during the second quarter of~~ 2021.

In response to the COVID-19 pandemic, the Company has taken two primary approaches in assisting its customers by modifying terms of existing loans and loans under the PPP. The Company has taken a proactive approach to assisting its borrowers through individual evaluation and broad-based programs. Modifications granted to borrowers have been payment deferrals taking the form of either full payment deferral or interest-only payments. Based on the circumstances of the borrower, payments have been deferred either 90 days, with the option to extend, or 180 days. Consistent with the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus, modifications granted to borrowers that are related to COVID-19 are not required to be evaluated as TDRs under ASC 310-40. These modified loans are classified as performing and are not considered past due. Loans are to be placed on nonaccrual when it becomes apparent that payment of interest or recovery of all principal is questionable, and the COVID-19 related modification is no longer considered short-term or the modification is deemed ineffective. As of December 31, 2021, there were no modified loans on nonaccrual, compared to three modified loans on nonaccrual, totaling $269 thousand as of December 31, 2020. Any loans modified are segmented separately with specific prepayment and maturity assumptions within the Company’s ACL. As of December 31, 2021, the Company had 11 COVID-19 related modifications remaining on loans with a total balance of $38 thousand, compared to 136 loans with a total balance of $67.6 million as of December 31, 2020. Within the Company’s non-credit card loan portfolios, over 1,400 loan modifications were made since the COVID-19 pandemic began. Of these loan modifications, 100.0% of loans have resumed making principal or interest payments as of December 31, 2021. There have been no charge-offs on modified loans. See further discussion of the impacts of COVID-19 on the Company’s consolidated financial statements in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Liquidity represents the Company’s ability to meet financial commitments through the maturity and sale of existing assets or availability of additional funds. The Company believes that the most important factor in the preservation of liquidity is maintaining public confidence that facilitates the retention and growth of a large, stable supply of core deposits and wholesale funds. Ultimately, the Company believes public confidence is generated through profitable operations, sound credit quality and a strong capital position. The primary source of liquidity for the Company is regularly scheduled payments on and maturity of assets, which include ~~$12.0~~$7.0 billion of high-quality securities available for sale. The liquidity of the Company and the Bank is also enhanced by its activity in the

federal funds market and by its core deposits. Additionally, management believes it can raise debt or equity capital on favorable terms in the future, should the need arise.

Another factor affecting liquidity is the amount of deposits and customer repurchase agreements that have pledging requirements. All customer repurchase agreements require collateral in the form of a security. The U.S. Government, other public entities, and certain trust depositors require the Company to pledge securities if their deposit balances are greater than the FDIC-insured deposit limitations. These pledging requirements affect liquidity risk in that the related security cannot otherwise be disposed due to the pledging restriction. At December 31, ~~2021, $10.2~~2022, $10.3 billion, or ~~85.1%~~80.3%, of ~~the~~ securities ~~available-for-sale~~ were pledged or used as collateral, compared to ~~$7.8~~$10.2 billion, or ~~84.1%~~75.8%, at December 31, ~~2020.~~2021. Of these amounts, securities with a market value of $171.2 million at December 31, 2021, ~~and $371.5 million at December 31, 2020,~~ were pledged at the Federal Reserve Discount Window but were unencumbered as of ~~those dates.~~that date.

The Company also has other commercial commitments that may impact liquidity. These commitments include unused commitments to extend credit, standby letters of credit and financial guarantees, and commercial letters of credit. The total amount of these commercial commitments at December 31, ~~2021~~2022 was ~~$14.2~~$17.4 billion. Since many of these commitments expire without being drawn upon, the total amount of these commercial commitments does not necessarily represent the future cash requirements of the Company.

The Company’s cash requirements consist primarily of dividends to shareholders, debt service, operating expenses, and treasury stock purchases. Management fees and dividends received from bank and non-bank subsidiaries traditionally have been sufficient to satisfy these requirements and are expected to be sufficient in the future. The Bank is subject to various rules regarding payment of dividends to the Company. For the most part, the Bank can pay dividends at least equal to its current year’s earnings without seeking prior regulatory approval. The Company also uses cash to inject capital into the Bank and its non-Bank subsidiaries to maintain adequate capital as well as to fund strategic initiatives.

In September 2022, the Company issued $110.0 million in aggregate subordinated notes due in September 2032. The Company received $107.9 million, after deducting underwriting discounts and commissions and offering expenses, and used the proceeds from the offering for general corporate purposes, including, among other uses, contributing Tier 1 capital into the Bank. The subordinated notes were issued with a fixed-to-fixed rate of 6.25% and an effective rate of 6.64%, due to issuance costs, with an interest rate reset date of September 2027.

The Company is a member bank of the FHLB. The Company owns $10.0 million of FHLB stock and has access to additional liquidity and funding sources through FHLB advances. The Company has access to borrow up to ~~$1.6~~$1.9 billion through advances at the FHLB of Des Moines but had no outstanding FHLB Des Moines advances as of December 31, ~~2021.~~2022.

Operational risk generally refers to the risk of loss resulting from the Company’s operations, including those operations performed for the Company by third parties. This would include but is not limited to the risk of fraud by employees or persons outside the Company, the execution of unauthorized transactions by employees or others, errors relating to transaction processing, breaches of the internal control system and compliance requirements, and unplanned interruptions in service. This risk of loss also includes the potential legal or regulatory actions that could arise as a result of an operational deficiency, or as a result of noncompliance with applicable regulatory standards.

The Company operates in many markets and relies on the ability of its employees and systems to properly process a high number of transactions. In the event of a breakdown in internal control systems, improper operation of systems or improper employee actions, the Company could suffer financial loss, face regulatory action and suffer damage to its reputation. In order to address this risk, management maintains a system of internal controls with the objective of providing proper transaction authorization and execution, safeguarding of assets from misuse or theft, and ensuring the reliability of financial and other data.

The Company maintains systems of internal controls that provide management with timely and accurate information about the Company’s operations. These systems have been designed to manage operational risk at appropriate levels given the Company’s financial strength, the environment in which it operates, and considering factors such as competition and regulation. The Company has also established procedures that are designed to ensure that policies relating to conduct, ethics and business practices are followed on a uniform basis. In certain cases, the Company has experienced losses from operational risk. Such losses have included the effects of operational errors that the Company has discovered and included as expense in the statement of income. While there can be no assurance that the Company will not suffer such losses in the future, management continually monitors and works to improve its internal controls, systems and corporate-wide processes and procedures.

We have audited the accompanying consolidated balance sheets of UMB Financial Corporation and subsidiaries (the Company) as of December 31, ~~2021~~2022 and ~~2020,~~2021, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, ~~2021,~~2022, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, ~~2021~~2022 and ~~2020,~~2021, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, ~~2021,~~2022, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, ~~2021,~~2022, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February ~~24, 2022~~23, 2023 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

As discussed in Notes 1, 2, and 3 to the consolidated financial statements, the Company has changed its method of accounting for the recognition and measurement of credit losses as of January 1, 2020 due to the adoption of ASC ~~Topic 326, Financial Instruments - Credit Losses~~.

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

As discussed in Notes 1 and 3 to the consolidated financial statements, the Company’s total allowance for credit losses on loans was ~~$194.8~~$191.8 million as of December 31, ~~2021,~~2022, a substantial portion of which related to the allowance for credit losses onfor loans evaluated on a collective basis for the commercial and industrial, commercial real estate, and consumer credit card loan segments (the collective ACL). The collective ACL includes the measure of expected credit losses on a pool basis for loans where similar risk characteristics exist and is determined using relevant available information from internal and external sources related to historical credit loss experience, current conditions, and reasonable and supportable economic forecasts. The Company

uses probability of default (PD) and loss given default (LGD) models for the commercial and industrial segment, commercial real estate segment, and revolver activity within the consumer credit card segment. For the commercial and industrial segment and revolver portion of the consumer credit card segment, the collective ACL is calculated by modeling PD over future periods multiplied by historical LGD multiplied by contractual exposure at default minus any modeled prepayments and charge offs. For the commercial real estate segment,

the collective ACL is calculated by modeling PD over future periods based on peer bank data. The PD loss rate is then multiplied by historical LGD multiplied by contractual exposure at default minus any modeled prepayments and charge offs. Primary risk drivers are segment specific and include macro-economic variables, risk ratings of the individual loans within the commercial and industrial and commercial real estate loan segments, and credit score ratings of individual card holders within the consumer credit card segment. After the reasonable and supportable forecast periods, the Company reverts to historical loss experience for each portfolio using a cliff or straight-line reversion method. A portion of the collective ACL is comprised of qualitative factors which represent adjustments to historical loss experience including concentrations of credit and results of internal loan review.

We identified the assessment of the collective ACL as a critical audit matter. A high degree of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgment was involved in the assessment of the collective ACL. Specifically, the assessment encompassed the evaluation of the collective ACL methodology, including the methods and models used to estimate (1) the PD and LGD and historical loss rates and their significant assumptions, including recovery rates, portfolio segmentation, average prepayment rates, the economic forecast scenario, macro-economic variables, the reasonable and supportable forecast periods, lengths of time and methods of reversion, risk ratings on commercial and industrial and commercial real estate loans, and credit score ratings and the estimated life of the credit card receivables on consumer credit card loans, and (2) the qualitative factors and their significant assumptions, including concentrations of credit and results of internal loan review. The assessment also included an evaluation of the conceptual soundness and performance of the PD and LGD and historical loss rate models. In addition, auditor judgment was required to evaluate the sufficiency of audit evidence obtained.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the measurement of the collective ACL, including controls related to the:

•development of the qualitative factors, including concentrations of credit and results of internal loan review

We evaluated the Company’s process to develop the collective ACL estimate by testing certain sources of data, factors, and assumptions that the Company used, and considered the relevance and reliability of such data, factors, and assumptions. In addition, we involved credit risk professionals with specialized skills and knowledge, who assisted in:

We also assessed the sufficiency of the audit evidence obtained related to the collective ACL by evaluating the:

	December 31,						December 31,
	2021			2020			2022			2021
ASSETS
Loans	$	17,170,871		$	16,103,651		$	21,031,189		$	17,170,871
Allowance for credit losses on loans		(194,771	)		(215,973	)		(191,836	)		(194,771	)
Net loans		16,976,100			15,887,678			20,839,353			16,976,100
Loans held for sale		1,277			6,708			1,978			1,277
Securities:
Available for sale (amortized cost of $11,822,584 and $8,887,734, respectively)		11,976,514			9,299,688
Held to maturity, net of allowance for credit losses of $1,940 and $2,610, respectively (fair value of $1,442,391 and $1,029,444, respectively)		1,478,476			1,012,004
Available for sale (amortized cost of $7,777,950 and $11,822,584, respectively)								7,006,347			11,976,514
Held to maturity, net of allowance for credit losses of $2,407 and $1,940, respectively (fair value of $5,280,659 and $1,442,391, respectively)								5,859,192			1,478,476
Trading securities		31,875			35,020			17,980			31,875
Other securities		327,098			296,053			349,758			327,098
Total securities		13,813,963			10,642,765			13,233,277			13,813,963
Federal funds sold and securities purchased under agreements to resell		1,216,357			1,650,335			958,597			1,216,357
Interest-bearing due from banks		8,841,906			3,110,042			1,179,105			8,841,906
Cash and due from banks		413,821			430,638			500,682			413,821
Premises and equipment, net		270,933			293,095			263,649			270,933
Accrued income		131,102			139,892			189,231			131,102
Goodwill		174,518			180,867			207,385			174,518
Other intangibles, net		14,416			21,056			78,724			14,416
Other assets		839,091			764,428			1,060,480			839,091
Total assets	$	42,693,484		$	33,127,504		$	38,512,461		$	42,693,484
LIABILITIES
Deposits:
Noninterest-bearing demand	$	16,342,642		$	9,879,970		$	13,260,363		$	16,342,642
Interest-bearing demand and savings		18,405,644			16,295,186			18,461,632			18,405,644
Time deposits under $250,000		403,660			477,748			379,087			403,660
Time deposits of $250,000 or more		447,981			398,347			538,051			447,981
Total deposits		35,599,927			27,051,251			32,639,133			35,599,927
Federal funds purchased and repurchase agreements		3,238,435			2,315,497			2,222,167			3,238,435
Long-term debt		271,544			269,595			381,311			271,544
Accrued expenses and taxes		249,492			319,676			239,624			249,492
Other liabilities		188,662			154,537			363,133			188,662
Total liabilities		39,548,060			30,110,556			35,845,368			39,548,060
SHAREHOLDERS’ EQUITY
Common stock, $1.00 par value; 80,000,000 shares authorized; 55,056,730 shares issued, 48,430,805 and 48,006,386 shares outstanding, respectively		55,057			55,057
Common stock, $1.00 par value; 80,000,000 shares authorized; 55,056,730 shares issued, 48,319,404 and 48,430,805 shares outstanding, respectively								55,057			55,057
Capital surplus		1,110,520			1,090,450			1,125,949			1,110,520
Retained earnings		2,176,998			1,891,246			2,536,086			2,176,998
Accumulated other comprehensive income, net		126,314			318,340
Treasury stock, 6,625,925 and 7,050,344 shares, at cost, respectively		(323,465	)		(338,145	)
Accumulated other comprehensive (loss) income, net								(702,735	)		126,314
Treasury stock, 6,737,326 and 6,625,925 shares, at cost, respectively								(347,264	)		(323,465	)
Total shareholders' equity		3,145,424			3,016,948			2,667,093			3,145,424
Total liabilities and shareholders' equity	$	42,693,484		$	33,127,504		$	38,512,461		$	42,693,484

	Year Ended December 31,						Year Ended December 31,
	2021		2020		2019		2022		2021		2020
INTEREST INCOME
Loans	$	619,273	$	585,957	$	637,845	$	810,007	$	619,273	$	585,957
Securities:
Taxable interest		127,625		105,701		106,053		192,121		127,625		105,701
Tax-exempt interest		98,305		99,820		90,064		97,190		98,305		99,820
Total securities income		225,930		205,521		196,117		289,311		225,930		205,521
Federal funds and resell agreements		10,048		11,840		13,843		19,109		10,048		11,840
Interest-bearing due from banks		5,417		3,744		12,882		18,582		5,417		3,744
Trading securities		854		1,427		2,205		511		854		1,427
Total interest income		861,522		808,489		862,892		1,137,520		861,522		808,489
INTEREST EXPENSE
Deposits		26,412		58,214		154,192		167,553		26,412		58,214
Federal funds and repurchase agreements		6,934		11,787		32,553		40,703		6,934		11,787
Other		12,655		7,259		5,242		15,467		12,655		7,259
Total interest expense		46,001		77,260		191,987		223,723		46,001		77,260
Net interest income		815,521		731,229		670,905		913,797		815,521		731,229
Provision for credit losses⁽¹⁾		20,000		130,500		32,850		37,900		20,000		130,500
Net interest income after provision for credit losses		795,521		600,729		638,055		875,897		795,521		600,729
NONINTEREST INCOME
Trust and securities processing		224,126		194,646		176,913		237,207		224,126		194,646
Trading and investment banking		30,939		32,945		23,466		23,201		30,939		32,945
Service charges on deposit accounts		86,056		83,879		82,748		85,167		86,056		83,879
Insurance fees and commissions		1,309		1,369		1,634		1,338		1,309		1,369
Brokerage fees		12,171		24,350		31,261		43,019		12,171		24,350
Bankcard fees		64,576		60,544		66,727		73,451		64,576		60,544
Investment securities gains, net		5,057		120,634		2,245		58,444		5,057		120,634
Other		42,941		41,799		41,776		32,406		42,941		41,799
Total noninterest income		467,175		560,166		426,770		554,233		467,175		560,166
NONINTEREST EXPENSE
Salaries and employee benefits		504,442		495,464		461,445		524,431		504,442		495,464
Occupancy, net		47,345		47,476		47,771		48,848		47,345		47,476
Equipment		78,398		85,719		79,086		74,259		78,398		85,719
Supplies and services		14,986		15,537		18,699		13,590		14,986		15,537
Marketing and business development		18,533		14,679		26,257		25,699		18,533		14,679
Processing fees		67,563		54,213		52,198		82,227		67,563		54,213
Legal and consulting		32,406		29,765		31,504		39,095		32,406		29,765
Bankcard		19,145		18,954		17,750		26,367		19,145		18,954
Amortization of other intangible assets		4,757		6,517		5,506		5,037		4,757		6,517
Regulatory fees		11,894		10,279		11,489		15,378		11,894		10,279
Other		34,167		43,402		27,155		43,188		34,167		43,402
Total noninterest expense		833,636		822,005		778,860		898,119		833,636		822,005
Income before income taxes		429,060		338,890		285,965		532,011		429,060		338,890
Income tax expense		76,042		52,388		42,365		100,329		76,042		52,388
NET INCOME	$	353,018	$	286,502	$	243,600	$	431,682	$	353,018	$	286,502

PER SHARE DATA
Net income – basic	$	7.31	$	5.95	$	4.99	$	8.93	$	7.31	$	5.95
Net income – diluted		7.24		5.93		4.96		8.86		7.24		5.93
Dividends		1.38		1.25		1.21		1.49		1.38		1.25
Weighted average shares outstanding – basic		48,271,462		48,137,791		48,779,263		48,340,922		48,271,462		48,137,791
Weighted average shares outstanding – diluted		48,738,292		48,343,750		49,089,877		48,747,399		48,738,292		48,343,750

	Year Ended December 31,									Year Ended December 31,
	2021			2020			2019			2022			2021			2020
Net income	$	353,018		$	286,502		$	243,600		$	431,682		$	353,018		$	286,502
Other comprehensive (loss) income, before tax:
Unrealized gains and losses on debt securities:
Change in unrealized holding gains and losses, net		(244,695	)		295,552			253,891			(1,137,417	)		(244,695	)		295,552
Less: Reclassification adjustment for gains included in net income		(7,817	)		(6,980	)		(3,218	)		—			(7,817	)		(6,980	)
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity											36,894			—			—
Change in unrealized gains and losses on debt securities during the period		(252,512	)		288,572			250,673			(1,100,523	)		(252,512	)		288,572
Unrealized gains and losses on derivative hedges:
Change in unrealized gains and losses on derivative hedges		3,106			20,979			(15,318	)		12,608			3,106			20,979
Less: Reclassification adjustment for (gains) losses included in net income		(3,352	)		(1,905	)		1,023
Less: Reclassification adjustment for gains included in net income											(5,353	)		(3,352	)		(1,905	)
Change in unrealized gains and losses on derivative hedges		(246	)		19,074			(14,295	)		7,255			(246	)		19,074
Other comprehensive (loss) income, before tax		(252,758	)		307,646			236,378			(1,093,268	)		(252,758	)		307,646
Income tax benefit (expense)		60,732			(72,486	)		(57,416	)		264,219			60,732			(72,486	)
Other comprehensive (loss) income		(192,026	)		235,160			178,962			(829,049	)		(192,026	)		235,160
Comprehensive income	$	160,992		$	521,662		$	422,562
Comprehensive (loss) income										$	(397,367	)	$	160,992		$	521,662

	Common Stock		Capital Surplus			Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Treasury Stock			Total			Common Stock		Capital Surplus			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
Balance January 1, 2019	$	55,057	$	1,054,601		$	1,488,421		$	(95,782	)	$	(273,827	)	$	2,228,470
Total comprehensive income		—		—			243,600			178,962			—			422,562
Dividends ($1.21 per share)		—		—			(59,583	)		—			—			(59,583	)
Purchase of treasury stock		—		—			—			—			(4,496	)		(4,496	)
Forfeitures of equity awards, net of issuances		—		3,820			—			—			(3,204	)		616
Recognition of equity-based compensation		—		14,234			—			—			—			14,234
Sale of treasury stock		—		344			—			—			487			831
Exercise of stock options		—		765			—			—			3,041			3,806
Balance December 31, 2019	$	55,057	$	1,073,764		$	1,672,438		$	83,180		$	(277,999	)	$	2,606,440
Balance January 1, 2020																		$	55,057	$	1,073,764		$	1,672,438		$	83,180		$	(277,999	)	$	2,606,440
Cumulative effect adjustments ⁽¹⁾		—		—			(7,039	)		—			—			(7,039	)		—		—			(7,039	)		—			—			(7,039	)
Adjusted balance – January 1, 2020		55,057		1,073,764			1,665,399			83,180			(277,999	)		2,599,401			55,057		1,073,764			1,665,399			83,180			(277,999	)		2,599,401
Total comprehensive income		—		—			286,502			235,160			—			521,662			—		—			286,502			235,160			—			521,662
Dividends ($1.25 per share)		—		—			(60,655	)		—			—			(60,655	)		—		—			(60,655	)		—			—			(60,655	)
Purchase of treasury stock		—		616			—			—			(64,382	)		(63,766	)		—		616			—			—			(64,382	)		(63,766	)
Forfeitures of equity awards, net of issuances		—		624			—			—			(16	)		608			—		624			—			—			(16	)		608
Recognition of equity-based compensation		—		14,512			—			—			—			14,512			—		14,512			—			—			—			14,512
Sale of treasury stock		—		201			—			—			414			615			—		201			—			—			414			615
Exercise of stock options		—		733			—			—			3,838			4,571			—		733			—			—			3,838			4,571
Balance December 31, 2020	$	55,057	$	1,090,450		$	1,891,246		$	318,340		$	(338,145	)	$	3,016,948		$	55,057	$	1,090,450		$	1,891,246		$	318,340		$	(338,145	)	$	3,016,948
Total comprehensive income (loss)		—		—			353,018			(192,026	)		—			160,992			—		—			353,018			(192,026	)		—			160,992
Dividends ($1.38 per share)		—		—			(67,266	)		—			—			(67,266	)		—		—			(67,266	)		—			—			(67,266	)
Purchase of treasury stock		—		—			—			—			(5,506	)		(5,506	)		—		—			—			—			(5,506	)		(5,506	)
Issuances of equity awards, net of forfeitures		—		(4,605	)		—			—			5,299			694			—		(4,605	)		—	��		—			5,299			694
Recognition of equity-based compensation		—		20,514			—			—			—			20,514			—		20,514			—			—			—			20,514
Sale of treasury stock		—		316			—			—			283			599			—		316			—			—			283			599
Exercise of stock options		—		3,845			—			—			14,604			18,449			—		3,845			—			—			14,604			18,449
Balance December 31, 2021	$	55,057	$	1,110,520		$	2,176,998		$	126,314		$	(323,465	)	$	3,145,424		$	55,057	$	1,110,520		$	2,176,998		$	126,314		$	(323,465	)	$	3,145,424
Total comprehensive income (loss)																			—		—			431,682			(829,049	)		—			(397,367	)
Dividends ($1.49 per share)																			—		—			(72,594	)		—			—			(72,594	)
Purchase of treasury stock																			—		—			—			—			(31,997	)		(31,997	)
Issuances of equity awards, net of forfeitures																			—		(6,143	)		—			—			6,822			679
Recognition of equity-based compensation																			—		20,812			—			—			—			20,812
Sale of treasury stock																			—		351			—			—			245			596
Exercise of stock options																			—		409			—			—			1,131			1,540
Balance December 31, 2022																		$	55,057	$	1,125,949		$	2,536,086		$	(702,735	)	$	(347,264	)	$	2,667,093

	Year Ended December 31,									Year Ended December 31,
	2021			2020			2019			2022			2021			2020
OPERATING ACTIVITIES
Net income	$	353,018		$	286,502		$	243,600		$	431,682		$	353,018		$	286,502
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses⁽¹⁾		20,000			130,500			32,850	��
Provision for credit losses											37,900			20,000			130,500
Net amortization of premiums and discounts from acquisition		535			251			215			1,340			535			251
Depreciation and amortization		55,747			62,803			56,258			54,022			55,747			62,803
Amortization of debt issuance costs		450			131			—			556			450			131
Deferred income tax benefit		(12,724	)		(4,836	)		(153	)		(6,308	)		(12,724	)		(4,836	)
Net (increase) decrease in trading securities and other earning assets		(10,329	)		10,598			15,393
Net decrease (increase) in trading securities and other earning assets											13,895			(10,329	)		10,598
Gains on investment securities, net		(5,057	)		(120,634	)		(2,245	)		(58,444	)		(5,057	)		(120,634	)
Gains on sales of assets		(2,666	)		(797	)		(374	)		(3,063	)		(2,666	)		(797	)
Amortization of securities premiums, net of discount accretion		53,467			44,302			33,441			45,184			53,467			44,302
Originations of loans held for sale		(137,337	)		(128,123	)		(216,334	)		(47,639	)		(137,337	)		(128,123	)
Gains on sales of loans held for sale, net		(5,128	)		(3,964	)		(1,370	)		(1,195	)		(5,128	)		(3,964	)
Proceeds from sales of loans held for sale		147,896			133,182			213,093			48,133			147,896			133,182
Equity based compensation		21,208			15,120			14,850			21,491			21,208			15,120
Net tax benefit related to equity compensation plans		2,597			345			766
Changes in:
Accrued income		4,587			(15,384	)		(14,340	)		(58,222	)		4,587			(15,384	)
Accrued expenses and taxes		(51,740	)		91,693			76,846			(10,995	)		(51,740	)		91,693
Other assets and liabilities, net		99,558			(128,091	)		(112,563	)		301,217			102,155			(127,746	)
Net cash provided by operating activities		534,082			373,598			339,933			769,554			534,082			373,598
INVESTING ACTIVITIES
Securities held to maturity:
Maturities, calls and principal repayments		198,783			193,629			208,009			460,413			198,783			193,629
Purchases		(664,661	)		(92,141	)		(156,143	)		(990,648	)		(664,661	)		(92,141	)
Securities available for sale:
Sales		372,644			315,890			411,981			—			372,644			315,890
Maturities, calls and principal repayments		1,743,809			2,455,185			1,251,051			1,114,560			1,743,809			2,455,185
Purchases		(5,080,172	)		(4,373,394	)		(2,346,927	)		(1,205,396	)		(5,080,172	)		(4,373,394	)
Equity securities with readily determinable fair values:
Sales		79,013			—			—			46,379			79,013			—
Maturities, calls and principal repayments		—			50,047			3,487			—			—			50,047
Purchases		(6,376	)		(75,177	)		—			(1,085	)		(6,376	)		(75,177	)
Equity securities without readily determinable fair values:
Sales		14			—			—			194			14			—
Maturities, calls and principal repayments		2,514			16,735			1,979			172			2,514			16,735
Purchases		(77,709	)		(9,145	)		(24,075	)		(29,660	)		(77,709	)		(9,145	)
Payment of low-income housing tax credit (LIHTC) investment commitments		(15,410	)		(42,995	)		(4,826	)		(35,854	)		(15,410	)		(42,995	)
Net increase in loans		(1,117,707	)		(2,693,761	)		(1,284,818	)		(3,952,154	)		(1,117,707	)		(2,693,761	)
Net decrease (increase) in fed funds sold and resell agreements		433,978			(71,990	)		(951,344	)		257,760			433,978			(71,990	)
Net cash activity from acquisitions and divestitures		18,431			24			(18,498	)		548,624			18,431			24
Net decrease (increase) in interest-bearing balances due from other financial institutions		7,146			(13,835	)		(10,447	)
Net (increase) decrease in interest-bearing balances due from other financial institutions											(13,705	)		7,146			(13,835	)
Purchases of bank premises and equipment		(33,687	)		(60,216	)		(72,313	)		(51,716	)		(33,687	)		(60,216	)
Proceeds from sales of bank premises and equipment		3,900			8,568			5,536			6,731			3,900			8,568
Purchases of bank-owned and company-owned life insurance		(100,000	)		(100,000	)		—			—			(100,000	)		(100,000	)
Proceeds from bank-owned and company-owned life insurance death benefit		—			1,489			2,187			—			—			1,489
Net cash used in investing activities		(4,235,490	)		(4,491,087	)		(2,985,161	)		(3,845,385	)		(4,235,490	)		(4,491,087	)

UMB Financial Corporation is a bank holding company, which offers a wide range of banking and other financial services to its customers through its branches and offices in the states of Missouri, Kansas, Colorado, Illinois, Oklahoma, Texas, Arizona, Nebraska, Iowa, Pennsylvania, South Dakota, Indiana, Utah, Minnesota, California, Wisconsin, Delaware, and ~~Wisconsin.~~New York. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. These estimates and assumptions also impact reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Following is a summary of the more significant accounting policies to assist the reader in understanding the financial presentation.

The Company and its wholly owned subsidiaries are included in the Consolidated Financial Statements (references hereinafter to the Company in these Notes to Consolidated Financial Statements include wholly owned subsidiaries). Intercompany accounts and transactions have been eliminated in consolidation.

Interest on loans and securities is recognized based on rate times the principal amount outstanding. This includes the impact of amortization of premiums and discounts. Interest accrual is discontinued when, in the opinion of management, the likelihood of collection becomes doubtful. ~~Other noninterest~~Noninterest income is recognized when performance obligations are satisfied.

Cash and cash equivalents include Cash and due from banks and amounts due from the FRB. Cash on hand, cash items in the process of collection, and amounts due from correspondent banks are included in Cash and due from banks. Amounts due from the FRB are interest-bearing for all periods presented and are included in the Interest-bearing due from banks line on the Company’s Consolidated Balance Sheets.

This table provides a summary of cash and cash equivalents as presented on the Consolidated Statements of Cash Flows as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	December 31,				December 31,
	2021		2020		2022		2021
Due from the FRB	$	8,800,743	$	3,066,928	$	1,057,192	$	8,800,743
Cash and due from banks		413,821		430,638		500,682		413,821
Cash and cash equivalents at end of year	$	9,214,564	$	3,497,566	$	1,557,874	$	9,214,564

Also included in the Interest-bearing due from banks line, but not considered cash and cash equivalents are interest-bearing accounts held at other financial institutions, which totaled ~~$41.2~~$121.7 million and ~~$43.1~~$41.2 million at December 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

~~As further discussed below, the Company adopted ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” on January 1, 2020. The revised accounting policies are described below.~~

Loans are classified by the portfolio segments of commercial and industrial, specialty lending, commercial real estate, consumer real estate, consumer, credit cards, and leases and other.

A loan is considered to be collateral dependent when management believes it is probable that it will be unable to collect all principal and interest due according to the contractual terms of the loan. If a loan is collateral dependent, the Company records a valuation allowance equal to the carrying amount of the loan in excess of the

present value of the estimated future cash flows discounted at the loan’s effective rate, based on the loan’s observable market price or the fair value of the collateral.

A loan is accounted for as a troubled debt restructuring when a concession had been granted to a debtor experiencing financial difficulties. The Company’s modifications generally include interest rate adjustments, and amortization and maturity date extensions. These modifications allow the debtor short-term cash relief to allow them to improve their financial condition. Restructured loans are considered to be collateral dependent and are individually evaluated for credit loss as part of the allowance for credit loss analysis.

Loans, including those that are considered to be collateral dependent or a troubled debt restructuring, are evaluated regularly by management. Loans are considered delinquent when payment has not been received within 30 days of its contractual due date. Loans are placed on nonaccrual status when the collection of interest or principal is 90 days or more past due unless the loan is adequately secured and in the process of collection. When a loan is placed on nonaccrual status, any interest previously accrued but not collected is reversed against current income. Loans may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Interest payments received on nonaccrual loans are applied to principal unless the remaining principal balance has been determined to be fully collectible.

The adequacy of the ACL on loans is based on management’s judgment and continuous evaluation of the pertinent factors underlying the credit quality inherent in the loan portfolio. Consideration of quantitative and qualitative factors relevant to each specific segmentation of loans includes lifetime historical loss experience, the impact of the current economic environment, reasonable and supportable forecasts, and detailed analysis of loans determined to be collateral dependent. The actual losses incurred over the lifetime of the portfolio, notwithstanding such considerations, however, could differ from the amounts estimated by management.

The Company maintains an allowance for off-balance sheet credit exposures, to address the credit risk to which the Company is exposed via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for off-balance sheet credit exposure is included in the Accrued expenses and taxes line item in the Consolidated Balance Sheets. In order to maintain the allowance for off-balance sheet items at an appropriate level, a provision to increase or reduce the allowance is included in the Provision for credit losses line item in the Company’s Consolidated Statements of Income. The allowance for off-balance sheet credit exposure is calculated by applying portfolio segment expected credit loss rates to the expected amount to be funded.

Loans held for sale are carried at the lower of aggregate cost or market value. Loan fees (net of certain direct loan origination costs) on loans held for sale are deferred until the related loans are sold or repaid. Gains or losses on loan sales are recognized at the time of sale and determined using the specific identification method.

Prior to the adoption of ASU 2016-13, loans were classified by the portfolio segments of commercial, real estate, consumer, and leases. The portfolio segments were further disaggregated into loan classes of commercial, asset-based, factoring, commercial credit card, real estate – construction, real estate – commercial, real estate – residential, real estate – HELOC, consumer – credit card, consumer – other, and leases. A loan was considered to be impaired when management believed it was probable that it would be unable to collect all principal and interest due according to the contractual terms of the loan. Additionally, the adequacy of the allowance for loan losses was based on management’s evaluation of the inherent losses that had been incurred within the existing portfolio of loans. Further, a reserve to address the risk of loss associated with loan contingencies was separately maintained. This reserve was assessed by dividing the contingencies into pools of similar loan commitments and applying to factors to each pool. The gross amount of contingent exposure was first multiplied by a potential factor to estimate the degree to which the unused commitments might reasonably be expected to be used in a time of high usage. The resultant figure was then multiplied by a factor to estimate the risk of loss assuming funding of these loans. The potential loss estimates for each segment of the portfolio were added to arrive at a total potential loss estimate that was used to set the reserve.

Debt securities available for sale principally include U.S. Treasury and Agency securities, GSE mortgage-backed securities, certain securities of state and political subdivisions, corporates, and collateralized loan obligations. Debt securities classified as available for sale are measured at fair value. Unrealized holding gains and losses are excluded from earnings and reported in ~~Accumulated other comprehensive income (AOCI)~~AOCI until realized.

Securities held to maturity are carried at amortized historical cost, net of the allowance for credit losses, based on management’s intention, and the Company’s ability to hold them to maturity. The Company classifies certain U.S. Agency securities, mortgage-backed securities, and securities of state and political subdivisions as held to maturity.

Trading securities, acquired for subsequent sale to customers, are carried at fair value. Market adjustments, fees and gains or losses on the sale of trading securities are considered to be a normal part of operations and are included in trading and investment banking income.

Securities may be transferred from the available-for-sale classification to the held-to-maturity classification when the Company has the positive intent and ability to hold these securities to maturity. Transfers of securities are made at fair value at the time of transfer. The unrealized holding gain or loss at the time of transfer is retained in AOCI and amortized over the remaining life of the securities, offsetting the related amortization of discount or premium on the transferred securities. No gains or losses are recognized at the time of the transfer.

The Company accounts for certain other investments using equity-method accounting. For equity securities without readily determinable fair values, the Company’s proportionate share of the income or loss is recognized on a one-quarter lag. When transparency in pricing exists, other investments are considered equity securities with readily determinable fair values.

Goodwill is tested for impairment annually and more frequently whenever events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. To test goodwill for impairment, the Company performs a qualitative assessment of each reporting unit. If the Company determines, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not greater than the carrying amount, the quantitative impairment test is not required. Otherwise, the Company compares the fair value of its reporting units to their carrying amounts to determine if an impairment exists and the amount of impairment loss. An impairment loss is measured as the excess of the carrying value of a reporting unit’s goodwill over its fair value.

~~NaN~~No goodwill impairments were recognized in 2022, 2021, ~~2020,~~ or ~~2019.~~2020. Other intangible assets, which relate to core deposits, non-compete agreements, and customer relationships, are amortized over their useful life. Intangible assets are evaluated for impairment when events or circumstances dictate. ~~NaN~~No intangible asset impairments were recognized in 2022, 2021, ~~2020,~~ or ~~2019.~~2020. The Company does 0tnot have any indefinite lived intangible assets.

Premises and equipment are stated at cost less accumulated depreciation, which is computed primarily on the straight-line method. Premises are depreciated over 15 to 40 year lives, while equipment is depreciated over lives of 3 to 20 years. Gains and losses from the sale of Premises and equipment are included in Other noninterest income and Other noninterest expense, respectively.

Long-lived assets, including Premises and equipment, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset or group of assets may not be recoverable. The impairment review includes a comparison of future cash flows expected to be generated by the asset or group of assets to their current carrying value. If the carrying value of the asset or group of assets exceeds expected cash flows (undiscounted and without interest charges), an impairment loss is recognized to the extent the carrying value exceeds fair value. ~~NaN~~No impairments were recognized in 2022, 2021, ~~2020,~~ or ~~2019.~~2020.

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are measured based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the periods in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The provision for deferred income taxes represents the change in the deferred income tax accounts during the year excluding the tax effect of the change in net unrealized gain (loss) on securities available for sale and certain derivative items.

The Company records deferred tax assets to the extent these assets will more likely than not be realized. All available evidence is considered in making such determination, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. A valuation allowance is recorded for the portion of deferred tax assets that are not more-likely-than-not to be realized, and any changes to the valuation allowance are recorded in income tax expense.

The Company records the financial statement effects of an income tax position when it is more likely than not, based on the technical merits, that it will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured and recorded as the largest amount of tax benefit that is greater than 50

percent likely of being realized upon ultimate settlement with a taxing authority. Previously recognized tax positions are derecognized in the first period in which it is no longer more likely than not that the tax position will be sustained. The benefit associated with previously unrecognized tax positions are generally recognized in the first period in which the more-likely-than-not threshold is met at the reporting date, the tax matter is ultimately settled through negotiation or litigation, or when the related statute of limitations for the relevant taxing authority to examine and challenge the tax position has expired. The recognition, derecognition and measurement of tax positions are based on management’s best judgment given the facts, circumstance and information available at the reporting date.

The Company recognizes accrued interest related to unrecognized tax benefits in interest expense and penalties in other noninterest expense. Accrued interest and penalties are included within the related liability lines in the Consolidated Balance Sheets. For the year ended December 31, ~~2021,~~2022, the Company has recognized an immaterial amount in interest and penalties related to the unrecognized tax benefits.

The Company records all derivatives on the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Currently, 12five of the Company’s derivatives are designated in qualifying hedging relationships. The remainder of the Company’s derivatives are not designated in qualifying hedging relationships, as the derivatives are not used to manage risks within the Company’s assets or liabilities. All changes in fair value of the Company’s non-designated derivatives and fair value hedges are recognized directly in earnings. Changes in fair value of the Company’s cash flow hedges are recognized in AOCI and are reclassified to earnings when the hedged transaction affects earnings.

Basic income per share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted year-to-date income per share includes the dilutive effect of 406,477, 466,830, ~~205,959,~~ and ~~310,614~~205,959 shares issuable upon the exercise of stock options, nonvested restricted shares, and nonvested restricted stock units, granted by the Company that were outstanding at December 31, 2022, 2021, ~~2020,~~ and ~~2019,~~2020, respectively.

Certain options, restricted stock and restricted stock units issued under employee benefit plans were excluded from the computation of diluted earnings per share because they were anti-dilutive. For the ~~year~~years ended December 31, 2022 and 2021, there were 0no outstanding stock options, restricted stock and restricted stock units excluded from the computation of diluted income per share. Outstanding options, restricted stock and restricted stock units of 198,671 ~~and 114,130~~ for the ~~years~~year ended December 31, 2020, ~~and 2019, respectively,~~ were excluded from the computation of diluted income per share because their inclusion would have been anti-dilutive.

The Company measures the cost of employee services received in exchange for an award of equity instruments based on the fair value of the award on the date of the grant. For stock options, restricted stock, and service-based restricted stock unit awards, the grant date fair value is estimated using either an option-pricing model which is consistent with the terms of the award or an observed market price, if such a price exists. For performance-based restricted stock unit awards, the grant date fair value is based on the quoted price of the Company’s common stock on the grant date less the present value of expected dividends not received during the vesting period. Such cost is generally recognized over the vesting period during which an employee is required to provide service in

exchange for the award and, in some cases, when performance metrics are met. The Company accounts for forfeitures of stock-based compensation on an actual basis as they occur.

~~Leases~~ In February 2016, the FASB issued ASU No. 2016-02, “Leases” – ASC Topic 842. In January, July, and December 2018 and March 2019, the FASB issued implementation amendments to the February 2016 ASU (collectively, the amended guidance). The amended guidance changed the accounting treatment of leases, in that lessees recognize most leases on-balance sheet. This increased reported assets and liabilities, as lessees are required to recognize a right-of-use asset along with a lease liability, measured on a discounted basis. The amended guidance allows an entity to choose either the effective date, or the beginning of the earliest comparative period presented in the financial statements, as its date of initial application. The Company adopted the amended guidance on January 1, 2019, using the effective date as the date of initial application. Adoption of the amended guidance resulted in the recording of a right-of-use asset of $58.2 million and a lease liability of $63.0 million to its Consolidated Balance Sheets as of January 1, 2019. The most significant effects of the adoption of the amended guidance are additional financial statement disclosures. See Note 8, “Premises, Equipment, and Leases” for related disclosures.

Credit Losses In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” In April and November 2019, the FASB issued implementation amendments to the June 2016 ASU (collectively, the amended guidance). The amended guidance replaced the current incurred loss methodology for

recognizing credit losses with a current expected credit loss model, which requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The amended guidance broadened the information that an entity must consider in developing its expected credit loss estimates. Additionally, the updates amended the accounting for credit losses for available-for-sale debt securities and purchased financial assets with a more-than-insignificant amount of credit deterioration since origination. The amended guidance required enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of a company’s loan portfolio. The Company adopted the amended guidance on January 1, 2020 using a modified retrospective approach for adoption. Results for the reporting periods beginning after December 31, 2019 are presented under ASC Topic 326, Financial Instruments – Credit Losses, while prior period amounts continue to be presented in accordance with previously applicable GAAP. Upon adoption, the Company recorded a cumulative effect adjustment to the Company’s Consolidated Balance Sheets of $9.0 million as an increase to the allowance for credit losses and $7.0 million as a reduction to retained earnings, net of deferred tax balances. See Note 3, “Loans and Allowance for Credit Losses” for related disclosures.

Troubled Debt Restructurings In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments – Credit Losses: Troubled Debt Restructurings and Vintage Disclosures.” The ASU eliminates the accounting guidance for troubled debt restructurings (TDR) by creditors and enhances disclosure requirements for certain loan re-financings and restructurings by creditors when a borrower is experiencing financial difficulty. The amendments also add requirements to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases, disclosed by credit-quality indicator and class of financing receivable. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in an interim period. The adoption of this accounting pronouncement will have no impact on the Consolidated Financial Statements aside from additional and revised disclosures.

The Company adopted the CECL methodology for measuring credit losses as of January 1, 2020 using a modified retrospective approach for adoption. All disclosures as of and for the years ended December 31, 2021 and 2020 are presented in accordance with ASC 326, ~~Financial Instruments – Credit Losses, while prior period amounts continue to be presented in accordance with previously applicable GAAP.~~

The Company has certain lending policies and procedures in place that are designed to minimize the level of risk within the loan portfolio. Diversification of the loan portfolio manages the risk associated with fluctuations in economic conditions. Authority levels are established for the extension of credit to ensure consistency throughout the Company. It is necessary that policies, processes, and practices implemented to control the risks of individual credit transactions and portfolio segments are sound and adhered to. The Company maintains an independent loan review department that reviews and validates the risk assessment on a continual basis. Management regularly evaluates the results of the loan reviews. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures.

Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Commercial loans are made based on the identified cash flows of the borrower and on the underlying collateral provided by the borrower. The cash flows of the borrower, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial

loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts from its customers.

Specialty lending loans include Asset-based and Factoring loans. Asset-based loans are offered primarily in the form of revolving lines of credit to commercial borrowers that do not generally qualify for traditional bank financing. Asset-based loans are underwritten based primarily upon the value of the collateral pledged to secure the loan, rather than on the borrower’s general financial condition. The Company utilizes pre-loan due diligence techniques, monitoring disciplines, and loan management practices common within the asset-based lending industry to underwrite loans to these borrowers. Factoring loans provide working capital through the purchase and/or financing of accounts receivable to borrowers in the transportation industry and to commercial borrowers that do not generally qualify for traditional bank financing. During the first quarter of 2022, the Company sold its factoring

loan portfolio to an alternative financing company. The sale included $82.6 million of loans, resulting in a gain of $2.4 million.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. The Company requires that an appraisal of the collateral be made at origination and on an as-needed basis, in conformity with current market conditions and regulatory requirements. The underwriting standards address both owner and non-owner-occupied real estate. Also included in Commercial real estate are Construction loans that are underwritten using feasibility studies, independent appraisal reviews, sensitivity analysis or absorption and lease rates, and financial analysis of the developers and property owners. Construction loans are based upon estimates of costs and value associated with the complete project. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their repayment being sensitive to interest rate changes, governmental regulation of real property, economic conditions, and the availability of long-term financing.

Consumer real estate loans, including residential real estate and home equity loans, are underwritten based on the borrower’s loan-to-value percentage, collection remedies, and overall credit history.

Consumer loans are underwritten based on the borrower’s repayment ability. The Company monitors delinquencies on all of its consumer loans and leases. The underwriting and review practices combined with the relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Consumer loans and leases that are 90 days past due or more are considered non-performing.

Credit cards include both commercial and consumer credit cards. Commercial credit cards are generally unsecured and are underwritten with criteria similar to commercial loans, including an analysis of the borrower’s cash flow, available business capital, and overall creditworthiness of the borrower. Consumer credit cards are underwritten based on the borrower’s repayment ability. The Company monitors delinquencies on all of its consumer credit cards and periodically reviews the distribution of ~~FICO~~credit scores relative to historical periods to monitor credit risk on its consumer credit card loans.

Credit risk is a potential loss resulting from nonpayment of either the primary or secondary exposure. Credit risk is mitigated with formal risk management practices and a thorough initial credit-granting process including consistent underwriting standards and approval process. Control factors or techniques to minimize credit risk include knowing the client, understanding total exposure, analyzing the client and debtor’s financial capacity, and monitoring the client’s activities. Credit risk and portions of the portfolio risk are managed through concentration considerations, average risk ratings, and other aggregate characteristics.

The following tables provide a summary of loan classes and an aging of past due loans at December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	December 31, 2021												December 31, 2022
	30-89 Days Past Due and Accruing		Greater than 90 Days Past Due and Accruing		Nonaccrual Loans		Total Past Due		Current		Total Loans		30-89 Days Past Due and Accruing		Greater than 90 Days Past Due and Accruing		Nonaccrual Loans		Total Past Due		Current		Total Loans
Loans
Commercial and industrial	$	2,827	$	896	$	82,845	$	86,568	$	7,171,552	$	7,258,120	$	2,456	$	2	$	11,356	$	13,814	$	9,192,172	$	9,205,986
Specialty lending		—		—		—		—		522,362		522,362		—		—		—		—		602,706		602,706
Commercial real estate		962		—		4,688		5,650		6,261,894		6,267,544		2,167		191		2,505		4,863		7,611,223		7,616,086
Consumer real estate		246		489		4,210		4,945		2,315,088		2,320,033		10		—		4,882		4,892		2,718,377		2,723,269
Consumer		105		2		75		182		128,953		129,135		613		20		61		694		144,972		145,666
Credit cards		2,369		1,246		457		4,072		387,317		391,389		3,529		1,404		441		5,374		426,298		431,672
Leases and other		—		—		25		25		282,263		282,288		—		—		24		24		305,780		305,804
Total loans	$	6,509	$	2,633	$	92,300	$	101,442	$	17,069,429	$	17,170,871	$	8,775	$	1,617	$	19,269	$	29,661	$	21,001,528	$	21,031,189

	December 31, 2020												December 31, 2021
	30-89 Days Past Due and Accruing		Greater than 90 Days Past Due and Accruing		Nonaccrual Loans		Total Past Due		Current		Total Loans		30-89 Days Past Due and Accruing		Greater than 90 Days Past Due and Accruing		Nonaccrual Loans		Total Past Due		Current		Total Loans
Loans
Commercial and industrial	$	4,652	$	319	$	33,769	$	38,740	$	7,023,334	$	7,062,074	$	2,827	$	896	$	82,845	$	86,568	$	7,171,552	$	7,258,120
Specialty lending		—		—		19,437		19,437		491,863		511,300		—		—		—		—		522,362		522,362
Commercial real estate		2,351		225		28,386		30,962		5,877,972		5,908,934		962		—		4,688		5,650		6,261,894		6,267,544
Consumer real estate		524		—		5,345		5,869		1,939,625		1,945,494		246		489		4,210		4,945		2,315,088		2,320,033
Consumer		281		120		88		489		117,497		117,986		105		2		75		182		128,953		129,135
Credit cards		2,061		1,288		798		4,147		362,821		366,968		2,369		1,246		457		4,072		387,317		391,389
Leases and other		—		—		—		—		190,895		190,895		—		—		25		25		282,263		282,288
Total loans	$	9,869	$	1,952	$	87,823	$	99,644	$	16,004,007	$	16,103,651	$	6,509	$	2,633	$	92,300	$	101,442	$	17,069,429	$	17,170,871

The Company sold consumer real estate loans with proceeds of $48.1 million, $147.9 million, ~~$133.2 million,~~ and ~~$213.1~~$133.2 million in the secondary market without recourse during the periods ended December 31, 2022, 2021, ~~2020,~~ and ~~2019,~~2020, respectively.

The Company has ceased the recognition of interest on loans with a carrying value of ~~$92.3~~$19.3 million and ~~$87.8~~$92.3 million at December 31, ~~2021~~2022 and ~~2020,~~2021, respectively. Restructured loans totaled ~~$7.3~~$5.2 million and ~~$10.8~~$7.3 million at December 31, ~~2021~~2022 and ~~2020,~~2021, respectively. Loans 90 days past due and still accruing interest amounted to ~~$2.6~~$1.6 million and ~~$2.0~~$2.6 million at December 31, ~~2021~~2022 and ~~2020,~~2021, respectively. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. There was an insignificant amount of interest reversed related to loans on nonaccrual during ~~2021~~2022 and ~~2020.~~2021. Nonaccrual loans with no related allowance for credit losses totaled ~~$85.9~~$16.7 million and ~~$42.1~~$85.9 million at December 31, ~~2021~~2022 and ~~2020,~~2021, respectively.

The following tables provide the amortized cost of nonaccrual loans with no related allowance for credit losses by loan class at December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	December 31, 2021				December 31, 2022
	Nonaccrual Loans		Amortized Cost of Nonaccrual Loans with no related Allowance		Nonaccrual Loans		Amortized Cost of Nonaccrual Loans with no related Allowance
Loans
Commercial and industrial	$	82,845	$	76,493	$	11,356	$	9,447
Specialty lending		—		—		—		—
Commercial real estate		4,688		4,688		2,505		2,505
Consumer real estate		4,210		4,210		4,882		4,226
Consumer		75		75		61		61
Credit cards		457		457		441		441
Leases and other		25		25		24		24
Total loans	$	92,300	$	85,948	$	19,269	$	16,704

	December 31, 2020				December 31, 2021
	Nonaccrual Loans		Amortized Cost of Nonaccrual Loans with no related Allowance		Nonaccrual Loans		Amortized Cost of Nonaccrual Loans with no related Allowance
Loans
Commercial and industrial	$	33,769	$	9,916	$	82,845	$	76,493
Specialty lending		19,437		242		—		—
Commercial real estate		28,386		25,733		4,688		4,688
Consumer real estate		5,345		5,345		4,210		4,210
Consumer		88		88		75		75
Credit cards		798		798		457		457
Leases and other		—		—		25		25
Total loans	$	87,823	$	42,122	$	92,300	$	85,948

The following tables provide a summary of the amortized cost balance of each of the Company’s loan classes disaggregated by collateral type and origination year as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

		December 31, 2021																					December 31, 2022
														Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																		Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Loan Segment and Type		Amortized Cost Basis by Origination Year - Term Loans																					Amortized Cost Basis by Origination Year - Term Loans
Loan Segment and Type		2021		2020		2019		2018		2017		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total			2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
Commercial and industrial:	Commercial and industrial:																					Commercial and industrial:
Equipment/Accounts Receivable/Inventory		$	2,400,110	$	945,383	$	356,348	$	150,892	$	115,571	$	131,900	$	2,984,740		$	247		$	7,085,191		$	2,140,609	$	1,562,527	$	642,649	$	267,444	$	96,916	$	86,787	$	4,223,358		$	3,926		$	9,024,216
Agriculture			12,077		5,884		3,308		640		344		1,143		130,946			—			154,342			13,630		5,415		2,046		1,985		396		541		149,266			562			173,841
Overdrafts			—		—		—		—		—		—		18,587			—			18,587			—		—		—		—		—		—		7,929			—			7,929
Total Commercial and industrial			2,412,187		951,267		359,656		151,532		115,915		133,043		3,134,273			247			7,258,120			2,154,239		1,567,942		644,695		269,429		97,312		87,328		4,380,553			4,488			9,205,986
Specialty lending:	Specialty lending:																					Specialty lending:
Asset-based lending			34,552		49,373		—		—		—		—		331,282			—			415,207			18,084		55,469		36,040		—		—		—		493,113			—			602,706
Factoring			—		—		—		—		—		—		107,155			—			107,155
Total Specialty lending			34,552		49,373		—		—		—		—		438,437			—			522,362			18,084		55,469		36,040		—		—		—		493,113			—			602,706
Commercial real estate:	Commercial real estate:																					Commercial real estate:
Owner-occupied			680,135		519,448		226,631		177,576		91,539		159,482		11,727			—			1,866,538			656,860		593,861		388,519		180,786		136,499		167,628		8,685			—			2,132,838
Non-owner-occupied			1,058,025		689,167		591,886		162,491		135,100		258,541		10,969			—			2,906,179			1,128,978		855,508		568,489		368,203		64,915		229,826		28,679			—			3,244,598
Farmland			61,505		273,624		34,145		16,969		19,929		34,858		38,239			999			480,268			94,989		47,092		220,796		24,057		15,963		24,162		121,054			—			548,113
5+ Multi-family			58,268		95,024		41,426		1,206		511		6,820		2,057			—			205,312			30,920		35,869		68,996		18,978		1,334		5,776		4,908			—			166,781
1-4 Family construction			53,004		4,933		17,333		—		—		—		985			—			76,255			61,943		15,217		—		—		—		—		19			—			77,179
General construction			439,973		160,553		64,283		38,505		203		256		29,219			—			732,992			628,820		719,437		43,166		15,492		—		395		39,267			—			1,446,577
Total Commercial real estate			2,350,910		1,742,749		975,704		396,747		247,282		459,957		93,196			999			6,267,544			2,602,510		2,266,984		1,289,966		607,516		218,711		427,787		202,612			—			7,616,086
Consumer real estate:	Consumer real estate:																					Consumer real estate:
HELOC			248		547		327		574		646		6,363		320,410			2,523			331,638			237		—		618		224		654		5,389		339,066			981			347,169
First lien: 1-4 family			830,513		712,264		200,167		58,734		61,641		102,997		19			—			1,966,335			628,703		748,362		607,105		173,466		45,907		140,443		12			—			2,343,998
Junior lien: 1-4 family			9,114		6,299		3,361		1,150		820		1,299		17			—			22,060			13,490		8,445		5,107		2,529		940		1,504		87			—			32,102
Total Consumer real estate			839,875		719,110		203,855		60,458		63,107		110,659		320,446			2,523			2,320,033			642,430		756,807		612,830		176,219		47,501		147,336		339,165			981			2,723,269
Consumer:	Consumer:																					Consumer:
Revolving line			974		—		—		—		—		—		60,049			120			61,143			467		584		—		—		—		—		58,133			1,403			60,587
Auto			9,886		7,775		5,462		1,107		479		220		—			—			24,929			9,124		6,543		4,455		2,743		335		159		—			—			23,359
Other			31,391		2,041		1,949		1,543		2,542		708		2,889			—			43,063			26,306		27,751		1,096		876		1,133		591		3,967			—			61,720
Total Consumer			42,251		9,816		7,411		2,650		3,021		928		62,938			120			129,135			35,897		34,878		5,551		3,619		1,468		750		62,100			1,403			145,666
Credit cards:	Credit cards:																					Credit cards:
Consumer			—		—		—		—		—		—		180,296			—			180,296			—		—		—		—		—		—		200,348			—			200,348
Commercial			—		—		—		—		—		—		211,093			—			211,093			—		—		—		—		—		—		231,324			—			231,324
Total Credit cards			—		—		—		—		—		—		391,389			—			391,389			—		—		—		—		—		—		431,672			—			431,672
Leases and other:	Leases and other:																					Leases and other:
Leases			—		—		814		—		739		614		—			—			2,167			—		—		—		712		—		1,224		—			—			1,936
Other			99,952		44,113		58,164		22,344		5,631		779		49,138			—			280,121			125,095		34,282		22,552		32,055		17,764		1,066		71,054			—			303,868
Total Leases and other			99,952		44,113		58,978		22,344		6,370		1,393		49,138			—			282,288			125,095		34,282		22,552		32,767		17,764		2,290		71,054			—			305,804
Total loans		$	5,779,727	$	3,516,428	$	1,605,604	$	633,731	$	435,695	$	705,980	$	4,489,817		$	3,889		$	17,170,871		$	5,578,255	$	4,716,362	$	2,611,634	$	1,089,550	$	382,756	$	665,491	$	5,980,269		$	6,872		$	21,031,189

		December 31, 2020																					December 31, 2021
														Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																		Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Loan Segment and Type		Amortized Cost Basis by Origination Year - Term Loans																					Amortized Cost Basis by Origination Year - Term Loans
Loan Segment and Type		2020		2019		2018		2017		2016		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total			2021		2020		2019		2018		2017		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
Commercial and industrial:	Commercial and industrial:																					Commercial and industrial:
Equipment/Accounts Receivable/Inventory		$	3,185,589	$	684,488	$	471,950	$	185,167	$	178,576	$	69,599	$	2,108,799		$	—		$	6,884,168		$	2,400,110	$	945,383	$	356,348	$	150,892	$	115,571	$	131,900	$	2,984,740		$	247		$	7,085,191
Agriculture			8,886		6,495		1,976		3,651		2,164		416		137,955			38			161,581			12,077		5,884		3,308		640		344		1,143		130,946			—			154,342
Overdrafts			—		—		—		—		—		—		16,325			—			16,325			—		—		—		—		—		—		18,587			—			18,587
Total Commercial and industrial			3,194,475		690,983		473,926		188,818		180,740		70,015		2,263,079			38			7,062,074			2,412,187		951,267		359,656		151,532		115,915		133,043		3,134,273			247			7,258,120
Specialty lending:	Specialty lending:																					Specialty lending:
Asset-based lending			64,258		—		—		—		—		—		291,091			—			355,349			34,552		49,373		—		—		—		—		331,282			—			415,207
Factoring			—		—		—		—		—		—		155,951			—			155,951			—		—		—		—		—		—		107,155			—			107,155
Total Specialty lending			64,258		—		—		—		—		—		447,042			—			511,300			34,552		49,373		—		—		—		—		438,437			—			522,362
Commercial real estate:	Commercial real estate:																					Commercial real estate:
Owner-occupied			579,212		334,098		233,192		170,913		120,603		176,377		18,880			51,910			1,685,185			680,135		519,448		226,631		177,576		91,539		159,482		11,727			—			1,866,538
Non-owner-occupied			846,030		630,457		230,549		169,193		333,215		115,753		49,384			97,954			2,472,535			1,058,025		689,167		591,886		162,491		135,100		258,541		10,969			—			2,906,179
Farmland			297,788		37,288		31,454		37,485		28,925		29,480		40,043			—			502,463			61,505		273,624		34,145		16,969		19,929		34,858		38,239			999			480,268
5+ Multi-family			190,922		80,293		2,835		32,498		39,802		6,298		2,418			94,789			449,855			58,268		95,024		41,426		1,206		511		6,820		2,057			—			205,312
1-4 Family construction			144		—		—		—		—		—		30,131			—			30,275			53,004		4,933		17,333		—		—		—		985			—			76,255
General construction			20,452		3,082		1,215		514		358		2,738		733,952			6,310			768,621			439,973		160,553		64,283		38,505		203		256		29,219			—			732,992
Total Commercial real estate			1,934,548		1,085,218		499,245		410,603		522,903		330,646		874,808			250,963			5,908,934			2,350,910		1,742,749		975,704		396,747		247,282		459,957		93,196			999			6,267,544
Consumer real estate:	Consumer real estate:																					Consumer real estate:
HELOC			82,410		11,236		4,263		241		63		2,561		294,390			5			395,169			248		547		327		574		646		6,363		320,410			2,523			331,638
First lien: 1-4 family			896,676		304,017		83,429		87,927		78,458		75,408		2,579			—			1,528,494			830,513		712,264		200,167		58,734		61,641		102,997		19			—			1,966,335
Junior lien: 1-4 family			9,142		6,383		2,360		1,247		948		1,470		281			—			21,831			9,114		6,299		3,361		1,150		820		1,299		17			—			22,060
Total Consumer real estate			988,228		321,636		90,052		89,415		79,469		79,439		297,250			5			1,945,494			839,875		719,110		203,855		60,458		63,107		110,659		320,446			2,523			2,320,033
Consumer:	Consumer:																					Consumer:
Revolving line			—		—		—		—		—		—		65,215			—			65,215			974		—		—		—		—		—		60,049			120			61,143
Auto			12,470		9,846		2,960		1,645		680		348		—			—			27,949			9,886		7,775		5,462		1,107		479		220		—			—			24,929
Other			5,017		3,200		2,131		216		1,005		172		13,081			—			24,822			31,391		2,041		1,949		1,543		2,542		708		2,889			—			43,063
Total Consumer			17,487		13,046		5,091		1,861		1,685		520		78,296			—			117,986			42,251		9,816		7,411		2,650		3,021		928		62,938			120			129,135
Credit cards:	Credit cards:																					Credit cards:
Consumer			—		—		—		—		—		—		188,681			—			188,681			—		—		—		—		—		—		180,296			—			180,296
Commercial			—		—		—		—		—		—		178,287			—			178,287			—		—		—		—		—		—		211,093			—			211,093
Total Credit cards			—		—		—		—		—		—		366,968			—			366,968			—		—		—		—		—		—		391,389			—			391,389
Leases and other:	Leases and other:																					Leases and other:
Leases			—		915		—		787		—		711		—			—			2,413			—		—		814		—		739		614		—			—			2,167
Other			33,626		10,758		7,659		2,611		1,323		646		131,859			—			188,482			99,952		44,113		58,164		22,344		5,631		779		49,138			—			280,121
Total Leases and other			33,626		11,673		7,659		3,398		1,323		1,357		131,859			—			190,895			99,952		44,113		58,978		22,344		6,370		1,393		49,138			—			282,288
Total loans		$	6,232,622	$	2,122,556	$	1,075,973	$	694,095	$	786,120	$	481,977	$	4,459,302		$	251,006		$	16,103,651		$	5,779,727	$	3,516,428	$	1,605,604	$	633,731	$	435,695	$	705,980	$	4,489,817		$	3,889		$	17,170,871

Accrued interest on loans totaled ~~$45.2~~$90.6 million and ~~$58.8~~$45.2 million as of December 31, ~~2021~~2022 and ~~2020,~~2021, respectively, and is included in the Accrued income line on the Company’s Consolidated Balance Sheets. The total amount of accrued interest is excluded from the amortized cost basis of loans presented above. Further, the Company has elected not to measure an allowance for credit losses for accrued interest receivable.

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grading of specified classes of loans, net charge-offs, non-performing loans, and general economic conditions.

The Company utilizes a risk grading matrix to assign a rating to each of its commercial, commercial real estate, and construction real estate loans. Changes in credit risk are monitored on a continuous basis and changes in risk ratings are made when identified. The loan ratings are summarized into the following categories: Non-watch list, Watch, Special Mention, Substandard, and Doubtful. Any loan not classified in one of the categories described below is considered to be a Non-watch list loan. A description of the general characteristics of the loan rating categories is as follows:

A discussion of the credit quality indicators that impact each type of collateral securing Commercial and industrial loans is included below:

Equipment, accounts receivable, and inventory General commercial and industrial loans are secured by working capital assets and non-real estate assets. The general purpose of these loans is for financing capital expenditures and current operations for commercial and industrial entities. These assets are short-term in nature. In the case of accounts receivable and inventories, the repayment of debt is reliant upon converting assets into cash or through goods and services being sold and collected. ~~Collateral based~~Collateral-based risk is due to aged short-term assets, which can be indicative of underlying issues with the borrower and lead to the value of the collateral being overstated.

Agriculture Agricultural loans are secured by non-real estate agricultural assets. These include shorter-term assets such as equipment, crops, and livestock. The risks associated with loans to finance crops or livestock include the borrower’s ability to successfully raise and market the commodity. Adverse weather conditions and other natural perils can dramatically affect farmers’ or ranchers’ production and ability to service debt. Volatile commodity prices present another significant risk for agriculture borrowers. Market price volatility and production cost volatility can affect both revenues and expenses.

Overdrafts Commercial overdrafts are typically short-term and unsecured. Some commercial borrowers tie their overdraft obligation to their line of credit, so any draw on the line of credit will satisfy the overdraft.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	December 31, 2021																				December 31, 2022
													Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																	Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans																				Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total		2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
Equipment/Accounts Receivable/Inventory
Non-watch list – Pass	$	2,299,784	$	874,786	$	325,630	$	141,667	$	106,141	$	130,153	$	2,750,764		$	247		$	6,629,172	$	2,079,002	$	1,466,120	$	588,562	$	246,387	$	90,656	$	83,054	$	3,879,709		$	3,633		$	8,437,123
Watch – Pass		68,322		34,324		25,572		5,056		1,794		698		106,177			—			241,943		28,570		78,523		52,696		7,493		3,617		2,275		213,871			—			387,045
Special Mention		5,886		—		2,600		592		1,742		997		41,209			—			53,026		4,072		5,637		1,178		—		1,817		899		34,631			—			48,234
Substandard		25,466		3,023		2,546		3,577		1,202		52		45,053			—			80,919		26,698		12,247		213		13,564		826		559		92,352			293			146,752
Doubtful		652		33,250		—		—		4,692		—		41,537			—			80,131		2,267		—		—		—		—		—		2,795			—			5,062
Total Equipment/Accounts Receivable/Inventory	$	2,400,110	$	945,383	$	356,348	$	150,892	$	115,571	$	131,900	$	2,984,740		$	247		$	7,085,191	$	2,140,609	$	1,562,527	$	642,649	$	267,444	$	96,916	$	86,787	$	4,223,358		$	3,926		$	9,024,216
Agriculture
Non-watch list – Pass	$	11,512	$	5,394	$	2,608	$	212	$	344	$	1,143	$	100,630		$	—		$	121,843	$	12,252	$	5,351	$	1,693	$	1,985	$	396	$	541	$	137,759		$	—		$	159,977
Watch – Pass		500		222		328		428		—		—		6,532			—			8,010		550		—		206		—		—		—		8,512			562			9,830
Special Mention		—		—		372		—		—		—		1,361			—			1,733		828		64		147		—		—		—		1,539			—			2,578
Substandard		65		268		—		—		—		—		22,423			—			22,756		—		—		—		—		—		—		1,456			—			1,456
Doubtful		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total Agriculture	$	12,077	$	5,884	$	3,308	$	640	$	344	$	1,143	$	130,946		$	—		$	154,342	$	13,630	$	5,415	$	2,046	$	1,985	$	396	$	541	$	149,266		$	562		$	173,841

	December 31, 2020																				December 31, 2021
													Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																	Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans																				Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2020		2019		2018		2017		2016		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total		2021		2020		2019		2018		2017		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
Equipment/Accounts Receivable/Inventory
Non-watch list – Pass	$	2,975,305	$	664,016	$	439,460	$	171,409	$	165,321	$	67,442	$	1,948,261		$	—		$	6,431,214	$	2,299,784	$	874,786	$	325,630	$	141,667	$	106,141	$	130,153	$	2,750,764		$	247		$	6,629,172
Watch – Pass		89,746		10,400		9,309		5,126		11,044		1,592		70,768			—			197,985		68,322		34,324		25,572		5,056		1,794		698		106,177			—			241,943
Special Mention		53,334		9,788		15,524		1,898		2,158		—		8,485			—			91,187		5,886		—		2,600		592		1,742		997		41,209			—			53,026
Substandard		67,118		231		7,657		1,369		53		565		81,246			—			158,239		25,466		3,023		2,546		3,577		1,202		52		45,053			—			80,919
Doubtful		86		53		—		5,365		—		—		39			—			5,543		652		33,250		—		—		4,692		—		41,537			—			80,131
Total Equipment/Accounts Receivable/Inventory	$	3,185,589	$	684,488	$	471,950	$	185,167	$	178,576	$	69,599	$	2,108,799		$	—		$	6,884,168	$	2,400,110	$	945,383	$	356,348	$	150,892	$	115,571	$	131,900	$	2,984,740		$	247		$	7,085,191
Agriculture
Non-watch list – Pass	$	7,880	$	3,924	$	1,389	$	1,379	$	1,759	$	404	$	92,917		$	38		$	109,690	$	11,512	$	5,394	$	2,608	$	212	$	344	$	1,143	$	100,630		$	—		$	121,843
Watch – Pass		179		2,571		188		102		345		—		17,956			—			21,341		500		222		328		428		—		—		6,532			—			8,010
Special Mention		303		—		399		22		—		12		6,674			—			7,410		—		—		372		—		—		—		1,361			—			1,733
Substandard		524		—		—		2,148		60		—		20,408			—			23,140		65		268		—		—		—		—		22,423			—			22,756
Doubtful		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total Agriculture	$	8,886	$	6,495	$	1,976	$	3,651	$	2,164	$	416	$	137,955		$	38		$	161,581	$	12,077	$	5,884	$	3,308	$	640	$	344	$	1,143	$	130,946		$	—		$	154,342

A discussion of the credit quality indicators that impact each type of collateral securing Specialty loans is included below:

Asset-based lending General asset-based loans are secured by accounts receivable, inventory, equipment, and real estate. The purpose of these loans is for financing current operations for commercial customers. The repayment of debt is reliant upon collection of the accounts receivable within 30 to 90 days or converting assets into cash or through goods and services being sold and collected. The Company tracks each individual borrower credit risk based on their loan to collateral position. Any borrower position where the underlying value of collateral is below the fair value of the loan is considered out-of-margin and inherently higher risk.

Factoring ~~General~~During the first quarter of 2022, the Company sold its factoring loan portfolio to an alternative financing company. Prior to the sale of this portfolio, factoring loans ~~are~~were secured by accounts receivable. The purpose of these loans iswas for financing current operations for trucking or other commercial customers. The repayment of debt iswas reliant upon collection of the accounts receivable within 30 to 90 days. The Company ~~tracks~~tracked each individual borrower’s credit risk based on their loan to collateral position. To assess credit risk, the portfolio iswas separated into two tiers and a specifically impaired category. Tier 1 ~~are~~were loans that ~~have~~had not experienced collateral coverage rates falling below an internally tracked threshold at any time during their relationship history. The internal threshold iswas lower than each customers’ actual contractual collateral coverage ratio. Tier 2 ~~are~~were loans that ~~have~~had experienced collateral coverage rates falling below the same internally tracked threshold during their relationship history. Loans individually evaluated ~~are~~were loans that ~~have~~had either experienced collateral coverage rates falling below an internally tracked threshold during their relationship history or ~~have~~had balances that ~~are~~were greater than an internally tracked threshold. Individually evaluated loans ~~utilize~~utilized a practical expedient for the purpose of determining the expected credit loss. Collateral dependent assets ~~are~~were loans placed on non-accrual and loans considered to be TDRs. The combination of these categories ~~has~~ created an associated allowance to this portfolio of $1.0 million ~~and $0.6 million~~ as of December 31, ~~2021 and 2020, respectively.~~2021.

The following table provides a summary of the amortized cost balance by risk rating for asset-based loans as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	Asset-based lending				Asset-based lending
Risk	December 31, 2021		December 31, 2020		December 31, 2022		December 31, 2021
In-margin	$	409,844	$	331,360	$	602,706	$	409,844
Out-of-margin		5,363		23,989		—		5,363
Total	$	415,207	$	355,349	$	602,706	$	415,207

The following table provides a summary of the amortized cost balance by risk rating for factoring loans as of December 31, 2021 ~~and 2020~~ (in thousands):

	Factoring				Factoring
Risk	December 31, 2021		December 31, 2020		December 31, 2021
Tier 1	$	9,433	$	10,774	$	9,433
Tier 2		65,149		135,861		65,149
Evaluated for impairment		32,573		7,755		32,573
Collateral dependent assets		—		1,561		—
Total	$	107,155	$	155,951	$	107,155

A discussion of the credit quality indicators that impact each type of collateral securing Commercial real estate loans is included below:

Owner-occupied Owner-occupied loans are secured by commercial real estate. These loans are often longer tenured and susceptible to multiple economic cycles. The loans rely on the owner-occupied operations to service debt which cover a broad spectrum of industries. Real estate debt can carry a significant amount of leverage for a borrower to maintain.

Non-owner-occupied Non-owner-occupied loans are secured by commercial real estate. These loans are often longer tenured and susceptible to multiple economic cycles. The key element of risk in this type of lending is the cyclical nature of real estate markets. Although national conditions affect the overall real estate industry, the effect of national conditions on local markets is equally important. Factors such as unemployment rates, consumer

demand, household formation, and the level of economic activity can vary widely from state to state and among

metropolitan areas. In addition to geographic considerations, markets can be defined by property type. While all sectors are influenced by economic conditions, some sectors are more sensitive to certain economic factors than others.

Farmland Farmland loans are secured by real estate used for agricultural purposes such as crop and livestock production. Assets used as collateral are long-term assets that carry the ability to have longer amortizations and maturities. Longer terms carry the risk of added susceptibility to market conditions. The limited purpose of some Agriculture-related collateral affects credit risk because such collateral may have limited or no other uses to support values when loan repayment problems emerge.

5+ Multi-family 5+ multi-family loans are secured by a multi-family residential property. The primary risks associated with this type of collateral are largely driven by economic conditions. The national and local market conditions can change with unemployment rates or competing supply of multi-family housing. Tenants may not be able to afford their housing or have better options and this can result in increased vacancy. Rents may need to be lowered to fill apartment units. Increased vacancy and lower rental rates not only drive the borrower’s ability to repay debt but also contribute to how the collateral is valued.

1-4 Family construction 1-4 family construction loans are secured by 1-4 family residential real estate and are in the process of construction or improvements being made. The predominant risk inherent to this portfolio is the risk associated with a borrower’s ability to successfully complete a project on time and within budget. Market conditions also play an important role in understanding the risk profile. Risk from adverse changes in market conditions from the start of development to completion can result in deflated collateral ~~values~~values.

General construction General construction loans are secured by commercial real estate in process of construction or improvements being made and their repayment is dependent on the collateral’s completion. Construction lending presents unique risks not encountered in term financing of existing real estate. The predominant risk inherent to this portfolio is the risk associated with a borrower’s ability to successfully complete a project on time and within budget. Commercial properties under construction are susceptible to market and economic conditions. Demand from prospective customers may erode after construction begins because of a general economic slowdown or an increase in the supply of competing properties.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	December 31, 2021																				December 31, 2022
													Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																	Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans																				Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total		2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
Owner-occupied
Non-watch list – Pass	$	679,662	$	507,220	$	208,376	$	174,352	$	89,588	$	154,920	$	11,627		$	—		$	1,825,745	$	628,858	$	559,067	$	364,760	$	149,183	$	133,339	$	162,412	$	7,850		$	—		$	2,005,469
Watch – Pass		191		10,891		16,493		1,055		1,143		1,572		—			—			31,345		19,405		32,581		17,061		9,785		2,664		2,121		—			—			83,617
Special Mention		93		1,304		—		—		—		—		—			—			1,397		5,435		2,213		5,120		18,946		—		—		835			—			32,549
Substandard		189		33		1,762		2,169		808		2,990		100			—			8,051		3,162		—		1,578		2,872		496		3,095		—			—			11,203
Doubtful		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total Owner-occupied	$	680,135	$	519,448	$	226,631	$	177,576	$	91,539	$	159,482	$	11,727		$	—		$	1,866,538	$	656,860	$	593,861	$	388,519	$	180,786	$	136,499	$	167,628	$	8,685		$	—		$	2,132,838
Non-owner-occupied
Non-watch list – Pass	$	976,097	$	679,313	$	536,084	$	143,243	$	129,820	$	219,701	$	10,969		$	—		$	2,695,227	$	1,075,444	$	810,926	$	568,489	$	356,896	$	64,915	$	214,635	$	28,679		$	—		$	3,119,984
Watch – Pass		57,052		1,277		55,802		19,248		5,280		2,587		—			—			141,246		53,534		44,582		—		11,307		—		5,071		—			—			114,494
Special Mention		24,876		8,577		—		—		—		36,223		—			—			69,676		—		—		—		—		—		10,109		—			—			10,109
Substandard		—		—		—		—		—		30		—			—			30		—		—		—		—		—		—		—			—			—
Doubtful		—		—		—		—		—		—		—			—			—		—		—		—		—		—		11		—			—			11
Total Non-owner-occupied	$	1,058,025	$	689,167	$	591,886	$	162,491	$	135,100	$	258,541	$	10,969		$	—		$	2,906,179	$	1,128,978	$	855,508	$	568,489	$	368,203	$	64,915	$	229,826	$	28,679		$	—		$	3,244,598
Farmland
Non-watch list – Pass	$	40,526	$	246,955	$	26,332	$	2,147	$	19,199	$	29,136	$	28,276		$	—		$	392,571	$	62,357	$	36,698	$	218,704	$	17,563	$	2,830	$	20,285	$	113,385		$	—		$	471,822
Watch – Pass		2,263		10,177		—		823		213		4,889		—			—			18,365		20,327		6,454		1,055		101		—		2,559		395			—			30,891
Special Mention		3,800		—		6,875		13,983		517		—		8,999			—			34,174		5,505		—		1,001		—		—		—		—			—			6,506
Substandard		14,916		16,492		938		16		—		833		964			999			35,158		6,800		3,940		36		6,393		13,133		1,318		7,274			—			38,894
Doubtful		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total Farmland	$	61,505	$	273,624	$	34,145	$	16,969	$	19,929	$	34,858	$	38,239		$	999		$	480,268	$	94,989	$	47,092	$	220,796	$	24,057	$	15,963	$	24,162	$	121,054		$	—		$	548,113
5+ Multi-family
Non-watch list – Pass	$	58,268	$	95,024	$	41,426	$	1,206	$	511	$	6,820	$	2,057		$	—		$	205,312	$	30,920	$	35,869	$	68,996	$	18,978	$	1,334	$	5,776	$	4,908		$	—		$	166,781
Watch – Pass		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Special Mention		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Substandard		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Doubtful		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total 5+ Multi-family	$	58,268	$	95,024	$	41,426	$	1,206	$	511	$	6,820	$	2,057		$	—		$	205,312	$	30,920	$	35,869	$	68,996	$	18,978	$	1,334	$	5,776	$	4,908		$	—		$	166,781
1-4 Family construction
Non-watch list – Pass	$	53,004	$	4,933	$	17,333	$	—	$	—	$	—	$	985		$	—		$	76,255	$	61,943	$	15,217	$	—	$	—	$	—	$	—	$	19		$	—		$	77,179
Watch – Pass		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Special Mention		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Substandard		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Doubtful		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total 1-4 Family construction	$	53,004	$	4,933	$	17,333	$	—	$	—	$	—	$	985		$	—		$	76,255	$	61,943	$	15,217	$	—	$	—	$	—	$	—	$	19		$	—		$	77,179
General construction
Non-watch list – Pass	$	436,696	$	160,553	$	62,675	$	38,505	$	203	$	239	$	29,219		$	—		$	728,090	$	628,479	$	699,698	$	43,166	$	15,384	$	—	$	380	$	39,267		$	—		$	1,426,374
Watch – Pass		3,277		—		—		—		—		—		—			—			3,277		341		—		—		22		—		—		—			—			363
Special Mention		—		—		—		—		—		—		—			—			—		—		8,340		—		—		—		—		—			—			8,340
Substandard		—		—		1,522		—		—		17		—			—			1,539		—		11,399		—		—		—		15		—			—			11,414
Doubtful		—		—		86		—		—		—		—			—			86		—		—		—		86		—		—		—			—			86
Total General construction	$	439,973	$	160,553	$	64,283	$	38,505	$	203	$	256	$	29,219		$	—		$	732,992	$	628,820	$	719,437	$	43,166	$	15,492	$	—	$	395	$	39,267		$	—		$	1,446,577

	December 31, 2020																					December 31, 2021
														Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																	Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans																					Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2020			2019		2018		2017		2016		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total		2021		2020		2019		2018		2017		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
Owner-occupied
Non-watch list – Pass	$	568,636		$	327,579	$	227,581	$	141,758	$	118,593	$	163,292	$	15,052		$	51,910		$	1,614,401	$	679,662	$	507,220	$	208,376	$	174,352	$	89,588	$	154,920	$	11,627		$	—		$	1,825,745
Watch – Pass		1,712			6,413		4,761		1,194		—		8,581		—			—			22,661		191		10,891		16,493		1,055		1,143		1,572		—			—			31,345
Special Mention		1,424			—		—		—		1,588		—		—			—			3,012		93		1,304		—		—		—		—		—			—			1,397
Substandard		7,440			106		850		27,961		422		4,504		3,828			—			45,111		189		33		1,762		2,169		808		2,990		100			—			8,051
Doubtful		—			—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total Owner-occupied	$	579,212		$	334,098	$	233,192	$	170,913	$	120,603	$	176,377	$	18,880		$	51,910		$	1,685,185	$	680,135	$	519,448	$	226,631	$	177,576	$	91,539	$	159,482	$	11,727		$	—		$	1,866,538
Non-owner-occupied
Non-watch list – Pass	$	802,078		$	525,246	$	205,484	$	156,290	$	294,979	$	101,616	$	49,384		$	81,499		$	2,216,576	$	976,097	$	679,313	$	536,084	$	143,243	$	129,820	$	219,701	$	10,969		$	—		$	2,695,227
Watch – Pass		43,769			45,748		25,065		12,903		1,936		7,701		—			16,455			153,577		57,052		1,277		55,802		19,248		5,280		2,587		—			—			141,246
Special Mention		183			32,953		—		—		36,300		5,100		—			—			74,536		24,876		8,577		—		—		—		36,223		—			—			69,676
Substandard		—			26,510		—		—		—		1,336		—			—			27,846		—		—		—		—		—		30		—			—			30
Doubtful		—			—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total Non-owner-occupied	$	846,030		$	630,457	$	230,549	$	169,193	$	333,215	$	115,753	$	49,384		$	97,954		$	2,472,535	$	1,058,025	$	689,167	$	591,886	$	162,491	$	135,100	$	258,541	$	10,969		$	—		$	2,906,179
Farmland
Non-watch list – Pass	$	237,124		$	27,815	$	15,907	$	26,071	$	13,376	$	8,924	$	19,074		$	—		$	348,291	$	40,526	$	246,955	$	26,332	$	2,147	$	19,199	$	29,136	$	28,276		$	—		$	392,571
Watch – Pass		20,992			9,221		13,404		5,133		6,301		19,835		17,699			—			92,585		2,263		10,177		—		823		213		4,889		—			—			18,365
Special Mention		—			—		630		1,854		4,901		40		861			—			8,286		3,800		—		6,875		13,983		517		—		8,999			—			34,174
Substandard		39,672			252		1,513		4,427		4,347		681		2,409			—			53,301		14,916		16,492		938		16		—		833		964			999			35,158
Doubtful		—			—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total Farmland	$	297,788		$	37,288	$	31,454	$	37,485	$	28,925	$	29,480	$	40,043		$	—		$	502,463	$	61,505	$	273,624	$	34,145	$	16,969	$	19,929	$	34,858	$	38,239		$	999		$	480,268
5+ Multi-family
Non-watch list – Pass	$	190,922		$	77,846	$	2,835	$	31,173	$	39,802	$	6,298	$	2,418		$	94,789		$	446,083	$	58,268	$	95,024	$	41,426	$	1,206	$	511	$	6,820	$	2,057		$	—		$	205,312
Watch – Pass		—			—		—		1,325		—		—		—			—			1,325		—		—		—		—		—		—		—			—			—
Special Mention		—			2,447		—		—		—		—		—			—			2,447		—		—		—		—		—		—		—			—			—
Substandard		—			—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Doubtful		—			—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total 5+ Multi-family	$	190,922		$	80,293	$	2,835	$	32,498	$	39,802	$	6,298	$	2,418		$	94,789		$	449,855	$	58,268	$	95,024	$	41,426	$	1,206	$	511	$	6,820	$	2,057		$	—		$	205,312
1-4 Family construction
Non-watch list – Pass	$	144		$	—	$	—	$	—	$	—	$	—	$	30,131		$	—		$	30,275	$	53,004	$	4,933	$	17,333	$	—	$	—	$	—	$	985		$	—		$	76,255
Watch – Pass		—			—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Special Mention		—			—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Substandard		—			—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Doubtful		—			—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total 1-4 Family construction	$	144		$	—	$	—	$	—	$	—	$	—	$	30,131		$	—		$	30,275	$	53,004	$	4,933	$	17,333	$	—	$	—	$	—	$	985		$	—		$	76,255
General construction
Non-watch list – Pass	$	20,452		$	2,996	$	1,215	$	514	$	358	$	2,738	$	730,616		$	6,310		$	765,199	$	436,696	$	160,553	$	62,675	$	38,505	$	203	$	239	$	29,219		$	—		$	728,090
Watch – Pass		—			—		—		—		—		—		—			—			—		3,277		—		—		—		—		—		—			—			3,277
Special Mention		—			—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Substandard		—			—		—		—		—		—		3,336			—			3,336		—		—		1,522		—		—		17		—			—			1,539
Doubtful		—			86		—		—		—		—		—			—			86		—		—		86		—		—		—		—			—			86
Total General construction	$	20,452	��	$	3,082	$	1,215	$	514	$	358	$	2,738	$	733,952		$	6,310		$	768,621	$	439,973	$	160,553	$	64,283	$	38,505	$	203	$	256	$	29,219		$	—		$	732,992

A discussion of the credit quality indicators that impact each type of collateral securing Consumer real estate loans is included below:

HELOC HELOC loans are revolving lines of credit secured by 1-4 family residential property. The primary risk is the borrower’s inability to repay debt. Revolving notes are often associated with HELOCs that can be secured by real estate without a 1st lien priority. Collateral is susceptible to market volatility impacting home values or economic downturns.

First lien: 1-4 family First lien 1-4 family loans are secured by a first lien on 1-4 family residential property. These term loans carry longer maturities and amortizations. The longer tenure exposes the borrower to multiple economic cycles, coupled with longer amortizations that result in smaller principal reduction early in the life of the loan. Collateral is susceptible to market volatility impacting home values.

Junior lien: 1-4 family Junior lien 1-4 family loans are secured by a junior lien on 1-4 family residential property. The Company’s primary risk is the borrower’s inability to repay debt and not being in a first lien position. Collateral is susceptible to market volatility impacting home values or economic downturns.

A borrower is considered non-performing if the Company has ceased the recognition of interest and the loan is placed on non-accrual. Charge-offs and borrower performance are tracked on a loan origination vintage basis. Certain vintages, based on their maturation cycle, could be at higher risk due to collateral-based risk factors.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	December 31, 2021																				December 31, 2022
													Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																	Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans																				Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total		2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
HELOC
Performing	$	248	$	531	$	188	$	165	$	381	$	4,956	$	320,241		$	2,440		$	329,150	$	120	$	—	$	592	$	90	$	148	$	3,919	$	338,979		$	759		$	344,607
Non-performing		—		16		139		409		265		1,407		169			83			2,488		117		—		26		134		506		1,470		87			222			2,562
Total HELOC	$	248	$	547	$	327	$	574	$	646	$	6,363	$	320,410		$	2,523		$	331,638	$	237	$	—	$	618	$	224	$	654	$	5,389	$	339,066		$	981		$	347,169
First lien: 1-4 family
Performing	$	830,513	$	712,194	$	199,949	$	58,585	$	61,233	$	102,194	$	19		$	—		$	1,964,687	$	628,678	$	748,269	$	607,055	$	173,061	$	45,907	$	138,764	$	12		$	—		$	2,341,746
Non-performing		—		70		218		149		408		803		—			—			1,648		25		93		50		405		—		1,679		—			—			2,252
Total First lien: 1-4 family	$	830,513	$	712,264	$	200,167	$	58,734	$	61,641	$	102,997	$	19		$	—		$	1,966,335	$	628,703	$	748,362	$	607,105	$	173,466	$	45,907	$	140,443	$	12		$	—		$	2,343,998
Junior lien: 1-4 family
Performing	$	9,114	$	6,299	$	3,361	$	1,143	$	800	$	1,251	$	17		$	—		$	21,985	$	13,490	$	8,445	$	5,107	$	2,529	$	940	$	1,437	$	87		$	—		$	32,035
Non-performing		—		—		—		7		20		48		—			—			75		—		—		—		—		—		67		—			—			67
Total Junior lien: 1-4 family	$	9,114	$	6,299	$	3,361	$	1,150	$	820	$	1,299	$	17		$	—		$	22,060	$	13,490	$	8,445	$	5,107	$	2,529	$	940	$	1,504	$	87		$	—		$	32,102

	December 31, 2020																				December 31, 2021
													Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																	Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans																				Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2020		2019		2018		2017		2016		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total		2021		2020		2019		2018		2017		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
HELOC
Performing	$	82,410	$	11,209	$	4,213	$	241	$	63	$	2,518	$	291,340		$	5		$	391,999	$	248	$	531	$	188	$	165	$	381	$	4,956	$	320,241		$	2,440		$	329,150
Non-performing		—		27		50		—		—		43		3,050			—			3,170		—		16		139		409		265		1,407		169			83			2,488
Total HELOC	$	82,410	$	11,236	$	4,263	$	241	$	63	$	2,561	$	294,390		$	5		$	395,169	$	248	$	547	$	327	$	574	$	646	$	6,363	$	320,410		$	2,523		$	331,638
First lien: 1-4 family
Performing	$	896,676	$	303,810	$	83,429	$	87,637	$	77,466	$	74,849	$	2,579		$	—		$	1,526,446	$	830,513	$	712,194	$	199,949	$	58,585	$	61,233	$	102,194	$	19		$	—		$	1,964,687
Non-performing		—		207		—		290		992		559		—			—			2,048		—		70		218		149		408		803		—			—			1,648
Total First lien: 1-4 family	$	896,676	$	304,017	$	83,429	$	87,927	$	78,458	$	75,408	$	2,579		$	—		$	1,528,494	$	830,513	$	712,264	$	200,167	$	58,734	$	61,641	$	102,997	$	19		$	—		$	1,966,335
Junior lien: 1-4 family
Performing	$	9,142	$	6,374	$	2,317	$	1,225	$	908	$	1,456	$	281		$	—		$	21,703	$	9,114	$	6,299	$	3,361	$	1,143	$	800	$	1,251	$	17		$	—		$	21,985
Non-performing		—		9		43		22		40		14		—			—			128		—		—		—		7		20		48		—			—			75
Total Junior lien: 1-4 family	$	9,142	$	6,383	$	2,360	$	1,247	$	948	$	1,470	$	281		$	—		$	21,831	$	9,114	$	6,299	$	3,361	$	1,150	$	820	$	1,299	$	17		$	—		$	22,060

A discussion of the credit quality indicators that impact each type of collateral securing Consumer loans is included below:

Revolving line Consumer Revolving lines of credit are secured by consumer assets other than real estate. The primary risk associated with this collateral is related to market volatility and the value of the underlying financial assets.

Auto Direct consumer auto loans are secured by new and used consumer vehicles. The primary risk with this collateral class is the rate at which the collateral depreciates.

Other This category includes Other consumer loans made to an individual. The primary risk for this category is for those loans where the loan is unsecured. This collateral type also includes other unsecured lending such as consumer overdrafts.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	December 31, 2021																				December 31, 2022
													Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																	Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans																				Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total		2022		2021		2020		2019		2018		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
Revolving line
Performing	$	974	$	—	$	—	$	—	$	—	$	—	$	60,049		$	120		$	61,143	$	467	$	584	$	—	$	—	$	—	$	—	$	58,133		$	1,403		$	60,587
Non-performing		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total Revolving line	$	974	$	—	$	—	$	—	$	—	$	—	$	60,049		$	120		$	61,143	$	467	$	584	$	—	$	—	$	—	$	—	$	58,133		$	1,403		$	60,587
Auto
Performing	$	9,886	$	7,775	$	5,424	$	1,107	$	479	$	220	$	—		$	—		$	24,891	$	9,124	$	6,498	$	4,454	$	2,743	$	335	$	159	$	—		$	—		$	23,313
Non-performing		—		—		38		—		—		—		—			—			38		—		45		1		—		—		—		—			—			46
Total Auto	$	9,886	$	7,775	$	5,462	$	1,107	$	479	$	220	$	—		$	—		$	24,929	$	9,124	$	6,543	$	4,455	$	2,743	$	335	$	159	$	—		$	—		$	23,359
Other
Performing	$	31,391	$	2,025	$	1,949	$	1,525	$	2,542	$	704	$	2,889		$	—		$	43,025	$	26,291	$	27,751	$	1,096	$	876	$	1,133	$	591	$	3,967		$	—		$	61,705
Non-performing		—		16		—		18		—		4		—			—			38		15		—		—		—		—		—		—			—			15
Total Other	$	31,391	$	2,041	$	1,949	$	1,543	$	2,542	$	708	$	2,889		$	—		$	43,063	$	26,306	$	27,751	$	1,096	$	876	$	1,133	$	591	$	3,967		$	—		$	61,720

	December 31, 2020																				December 31, 2021
													Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans																	Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans																				Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2020		2019		2018		2017		2016		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total		2021		2020		2019		2018		2017		Prior				Amortized Cost - Revolving Loans			Amortized Cost - Revolving Loans Converted to Term Loans	Total
Revolving line
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	65,215		$	—		$	65,215	$	974	$	—	$	—	$	—	$	—	$	—	$	60,049		$	120		$	61,143
Non-performing		—		—		—		—		—		—		—			—			—		—		—		—		—		—		—		—			—			—
Total Revolving line	$	—	$	—	$	—	$	—	$	—	$	—	$	65,215		$	—		$	65,215	$	974	$	—	$	—	$	—	$	—	$	—	$	60,049		$	120		$	61,143
Auto
Performing	$	12,465	$	9,784	$	2,960	$	1,645	$	680	$	347	$	—		$	—		$	27,881	$	9,886	$	7,775	$	5,424	$	1,107	$	479	$	220	$	—		$	—		$	24,891
Non-performing		5		62		—		—		—		1		—			—			68		—		—		38		—		—		—		—			—			38
Total Auto	$	12,470	$	9,846	$	2,960	$	1,645	$	680	$	348	$	—		$	—		$	27,949	$	9,886	$	7,775	$	5,462	$	1,107	$	479	$	220	$	—		$	—		$	24,929
Other
Performing	$	5,000	$	3,200	$	2,131	$	214	$	1,005	$	172	$	13,081		$	—		$	24,803	$	31,391	$	2,025	$	1,949	$	1,525	$	2,542	$	704	$	2,889		$	—		$	43,025
Non-performing		17		—		—		2		—		—		—			—			19		—		16		—		18		—		4		—			—			38
Total Other	$	5,017	$	3,200	$	2,131	$	216	$	1,005	$	172	$	13,081		$	—		$	24,822	$	31,391	$	2,041	$	1,949	$	1,543	$	2,542	$	708	$	2,889		$	—		$	43,063

A discussion of the credit quality indicators that impact Credit card loans is included below:

Consumer Consumer credit card loans are revolving loans made to individuals. The primary risk associated with this collateral class is credit card debt is generally unsecured; therefore, repayment depends primarily on a borrower’s willingness and capacity to repay. The highly competitive environment for credit card lending provides consumers with ample opportunity to hold several credit cards from different issuers and to pay only minimum monthly payments on outstanding balances. In such an environment, borrowers may become over-extended and unable to repay, particularly in times of an economic downturn or a personal catastrophic event.

The consumer credit card portfolio is segmented by borrower payment activity. Transactors are defined as accounts that pay off their balance by the end of each statement cycle. Revolvers are defined as an account that

carries a balance from statement cycle to the next. These accounts incur monthly finance charges, and, sometimes, late fees. Revolvers are inherently higher risk and are tracked by ~~FICO~~credit score.

Commercial Commercial credit card loans are revolving loans made to small and commercial businesses. The primary risk associated with this collateral class is credit card debt is generally unsecured; therefore, repayment depends primarily on a borrower’s willingness and capacity to repay. Borrowers may become over-extended and unable to repay, particularly in times of an economic downturn or a catastrophic event.

The commercial credit card portfolio is segmented by current and past due payment status. A borrower is past due after 30 days. In general, commercial credit card customers do not have incentive to hold a balance resulting in paying interest on credit card debt as commercial customers will typically have other debt obligations with lower interest rates in which they can utilize for capital.

The following table provides a summary of the amortized cost balance of consumer credit cards by risk rating as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	Consumer				Consumer
Risk	December 31, 2021		December 31, 2020		December 31, 2022		December 31, 2021
Transactor accounts	$	57,777	$	51,017	$	73,670	$	57,777
Revolver accounts (by FICO score):
Revolver accounts (by Credit score):
Less than 600		6,065		7,230		4,684		6,065
600-619		2,416		2,950		2,515		2,416
620-639		4,158		5,493		4,959		4,158
640-659		7,854		9,497		8,655		7,854
660-679		13,185		15,541		9,593		13,185
680-699		15,365		19,345		12,023		15,365
700-719		16,308		18,048		14,098		16,308
720-739		14,753		16,288		15,036		14,753
740-759		12,734		13,944		13,638		12,734
760-779		8,879		9,493		13,768		8,879
780-799		7,048		7,088		13,172		7,048
800-819		5,787		5,513		9,257		5,787
820-839		5,026		4,570		4,363		5,026
840+		2,941		2,664		917		2,941
Total	$	180,296	$	188,681	$	200,348	$	180,296

The following table provides a summary of the amortized cost balance of commercial credit cards by risk rating as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	Commercial				Commercial
Risk	December 31, 2021		December 31, 2020		December 31, 2022		December 31, 2021
Current	$	200,402	$	170,412	$	219,558	$	200,402
Past Due		10,691		7,875		11,766		10,691
Total	$	211,093	$	178,287	$	231,324	$	211,093

A discussion of the credit quality indicators that impact each type of collateral securing Leases and other loans is included below:

Leases Leases are either loans to individuals for household, family and other personal expenditures or are loans related to all other direct financing and leveraged leases on property for leasing to lessees other than for household, family, and other personal expenditure purposes. All leases are secured by the lease between the lessor and the lessee. These assignments grant the creditor a security interest in the rent stream from any lease, an important source of cash to pay the note in case of the borrower’s default.

Other Other loans are loans that are obligations of states and political subdivisions in the U.S., loans to non-depository financial institutions, loans for purchasing or carrying securities, or all other non-consumer loans. Risk

associated with other loans is tied to the underlying collateral by each type of loan. Collateral is generally

equipment, accounts receivable, inventory, 1-4 family residential construction and susceptible to the same risks mentioned with those collateral types previously. Other risks consist of collateral that is secured by the stock of a non-depository financial institution, which can be unlisted stock with a limited market for the stock, or volatility of asset values driven by market performance.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following table provides a summary of the amortized cost balance by collateral type and risk rating as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	Leases					Other				Leases				Other
Risk	December 31, 2021		December 31, 2020			December 31, 2021		December 31, 2020		December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Non-watch list – Pass	$	2,167		$	2,413	$	279,401	$	187,924	$	1,936	$	2,167	$	303,107	$	279,401
Watch – Pass		—			—		695		350		—		—		737		695
Special Mention		—			—		—		—		—		—		—		—
Substandard		—			—		25		208		—		—		24		25
Doubtful		—			—		—		—		—		—		—		—
Total	$	2,167		$	2,413	$	280,121	$	188,482	$	1,936	$	2,167	$	303,868	$	280,121

The ACL is a valuation account that is deducted from loans’ and HTM securities’ amortized cost bases to present the net amount expected to be collected on the instrument. Loans and HTM securities are charged off against the ACL when management believes the balance has become uncollectible. Expected recoveries are included in the allowance and do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable economic forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses and is tracked over an economic cycle to capture a ‘through the cycle’ loss history. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in portfolio industry-based segmentation, risk rating and ~~FICO~~credit score changes, average prepayment rates, changes in environmental conditions, or other relevant factors. For economic forecasts, the Company uses the Moody’s baseline scenario. The Company has developed a dynamic reasonable and supportable forecast period that ranges from one to three years and changes based on economic conditions. Due to current economic conditions, the Company’s reasonable and supportable forecast period is one year. After the reasonable and supportable forecast period, the Company reverts to historical losses. The reversion method applied to each portfolio can either be cliff or straight-line over four quarters.

The ACL is measured on a collective (pool) basis when similar risk characteristics exists. The ACL also incorporates qualitative factors which represent adjustments to historical credit loss experience for items such as concentrations of credit and results of internal loan review. The Company has identified the following portfolio segments and measures the allowance for credit losses using the following methods. The Company’s portfolio segmentation consists of Commercial and industrial, Specialty lending, Commercial real estate, Consumer real estate, Consumer, Credit cards, Leases and other, and Held-to-maturity securities. Multiple modeling techniques are used to measure credit losses based on the portfolio.

The ACL for Commercial & industrial and Leases and other segments are measured using a probability of default and loss given default method. Primary risk drivers within the segment are risk ratings of the individual loans along with changes of macro-economic variables such as ~~interest~~unemployment rates, industrial production, and farm income. The ACL for commercial & industrial loans is calculated by modeling probability of default (PD) over future periods multiplied by historical loss given default rates (LGD) multiplied by contractual exposure at default minus any estimated prepayments and charge offs.

Collateral positions for Specialty lending loans are continuously monitored by the Company and the borrower is required to continually adjust the amount of collateral securing the loan. Credit losses are measured for any

position where the amortized cost basis is greater than the fair value of the collateral. The ACL for specialty lending loans is calculated by using a ~~bottom up~~bottom-up approach comparing collateral values to outstanding balances.

The ACL for the Commercial real estate segment is measured using a PD and LGD method. Primary risk characteristics within the segment are risk ratings of the individual loans, along with changes of macro-economic variables, such as interest rates, CRE price index, median household income, construction activity, farm income, and vacancy rates. The ACL for commercial real estate loans is calculated by modeling PD over future periods based on peer bank data. The PD loss rate is then multiplied by historical LGD multiplied by contractual exposure at default minus any estimated prepayments and charge offs.

The ACL for the Consumer real estate and Consumer segments are measured using an origination vintage loss rate method applied to the loans’ amortized cost balance. The primary risk driver within the segments is year of origination along with changes of macro-economic variables such as unemployment and the home price index.

The Credit card segment contains both consumer and commercial credit cards. The ACL for Consumer credit cards is measured using a PD and LGD method for Revolvers and average historical loss rates across a defined lookback period for Transactors. The PD and LGD method used for Revolvers is similar in nature to the method used in the Commercial & industrial and Commercial real estate segments. Primary risk drivers within the segment are ~~FICO~~credit ratings of the individual card holders along with changes of macro-economic variables such as unemployment and retail sales. The ACL for Commercial credit cards is measured using roll-rate loss rate method based on days past due.

The ACL for the State and political HTM securities segment is measured using a loss rate method based on historical bond rating transitions. Primary risk drivers within the segment are bond ratings in the portfolio along with changes of macro-economic conditions. There is no ACL for the U.S. Agency and GSE mortgage-backed HTM securities portfolios as they are considered to be agency-backed securities with no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. For further discussion on these securities, including the aging and amortized cost balance of HTM securities, see Note 4, “Securities.”

See the credit quality indicators presented previously for a summary of current risk in the Company’s portfolio. Changes in economic forecasts will affect all portfolio segments, updated financial records from borrowers will affect portfolio segments by risk rating, updated ~~FICO~~credit scores will affect consumer credit cards, payment performance will affect consumer and commercial credit card portfolio segments, and updated bond credit ratings will affect held-to-maturity securities. The Company actively monitors all credit quality indicators for risk changes that will influence the current estimate.

Expected credit losses are estimated over the contractual term of the loans, adjusted for prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a ~~troubled debt restructuring (TDR)~~TDR will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company.

Credit card receivables do not have stated maturities. In determining the estimated life of a credit card receivable, management first estimates the future cash flows expected to be received and then applies those expected future cash flows to the credit card balance. Expected credit losses for credit cards are determined by estimating the amount and timing of principal payments expected to be received as payment for the balance outstanding as of the reporting period until the expected payments have been fully allocated. The ACL is recorded for the excess of the balance outstanding as of the reporting period over the expected principal payments.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually include loans on nonaccrual, loans classified as TDRs, or any loans specifically identified, and are excluded from the collective evaluation. When it is determined that payment of interest or recovery of all principal is questionable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for undiscounted selling costs as appropriate. All loans are classified as collateral dependent if placed on non-accrual or are considered to be a TDR.

A loan modification is considered a TDR when a concession has been granted to a debtor experiencing financial difficulties. The allowance for credit loss on a TDR is measured using the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the allowance for credit loss is determined by discounting the expected future cash flows, including contractual payments and value of collateral at termination, at the original effective interest rate of the loan.

The following tables provide a rollforward of the allowance for credit losses by portfolio segment for the year ended December 31, 2022, 2021, and 2020 (in thousands):

		Year Ended December 31, 2021																															Year Ended December 31, 2022
		Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM			Total				Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other		Total - Loans			HTM		Total
Allowance for credit losses:	Allowance for credit losses:																															Allowance for credit losses:
Beginning balance		$	122,700		$	5,219		$	61,931		$	6,586		$	1,480		$	15,786		$	2,271		$	215,973		$	2,610		$	218,583			$	123,732		$	1,738		$	56,265		$	3,921		$	845		$	6,075		$	2,195	$	194,771		$	1,940	$	196,711
Charge-offs			(13,981	)		(31,945	)		(1,198	)		(96	)		(2,424	)		(6,011	)		(8	)		(55,663	)		—			(55,663	)			(37,269	)		—			(29	)		(57	)		(800	)		(6,150	)		—		(44,305	)		—		(44,305	)
Recoveries			6,694			187			1,560			142			223			1,967			18			10,791			—			10,791				1,550			433			385			131			126			1,812			—		4,437			—		4,437
Provision			8,319			28,277			(6,028	)		(2,711	)		1,566			(5,667	)		(86	)		23,670			(670	)		23,000				48,724			(2,171	)		(17,251	)		2,153			323			5,129			26		36,933			467		37,400
Ending balance - ACL		$	123,732		$	1,738		$	56,265		$	3,921		$	845		$	6,075		$	2,195		$	194,771		$	1,940		$	196,711			$	136,737		$	—		$	39,370		$	6,148		$	494		$	6,866		$	2,221	$	191,836		$	2,407	$	194,243
Allowance for credit losses on off-balance sheet credit exposures:	Allowance for credit losses on off-balance sheet credit exposures:																															Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance		$	3,859		$	287		$	447		$	145		$	381		$	—		$	414		$	5,533		$	55		$	5,588			$	1,739		$	160		$	480		$	106		$	—		$	—		$	15	$	2,500		$	88	$	2,588
Provision			(2,120	)		(127	)		33			(39	)		(381	)		—			(399	)		(3,033	)		33			(3,000	)			439			26			(62	)		18			13			—			47		481			19		500
Ending balance - ACL on off-balance sheet		$	1,739		$	160		$	480		$	106		$	—		$	—		$	15		$	2,500		$	88		$	2,588			$	2,178		$	186		$	418		$	124		$	13		$	—		$	62	$	2,981		$	107	$	3,088

The primary drivers for the decrease in the Company’s ACL as of December 31, 2021 include the impact of the current and forecasted economic environment, including improving conditions related to the COVID-19 pandemic, partially offset by the growth in the loan portfolio.

The allowance for credit losses on off-balance sheet credit exposures is recorded in the Accrued expenses and taxes line of the Company’s Consolidated Balance Sheets, see Note 15 “Commitments, Contingencies and Guarantees.”

~~This table provides a rollforward of the allowance for loan losses by portfolio segment for the year ended December 31, 2019 (in thousands):~~

The following tables provide the amortized cost balance of financial assets considered collateral dependent as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	December 31, 2021						December 31, 2022
Loan Segment and Type	Amortized Cost of Collateral Dependent Assets		Related Allowance for Credit Losses		Amortized Cost of Collateral Dependent Assets with no related Allowance		Amortized Cost of Collateral Dependent Assets		Related Allowance for Credit Losses		Amortized Cost of Collateral Dependent Assets with no related Allowance
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	82,845	$	2,421	$	76,493	$	13,972	$	713	$	11,534
Agriculture		—		—		—		—		—		—
Total Commercial and industrial		82,845		2,421		76,493		13,972		713		11,534
Specialty lending:
Asset-based lending		—		—		—		—		—		—
Factoring		—		—		—
Total Specialty lending		—		—		—		—		—		—
Commercial real estate:
Owner-occupied		2,764		—		2,764		2,204		—		2,204
Non-owner-occupied		—		—		—		—		—		—
Farmland		487		—		487		374		—		374
5+ Multi-family		—		—		—		—		—		—
1-4 Family construction		—		—		—		—		—		—
General construction		1,626		—		1,626		101		—		101
Total Commercial real estate		4,877		—		4,877		2,679		—		2,679
Consumer real estate:
HELOC		2,488		—		2,488		2,562		—		2,562
First lien: 1-4 family		1,647		—		1,647		2,253		6		1,597
Junior lien: 1-4 family		75		—		75		67		—		67
Total Consumer real estate		4,210		—		4,210		4,882		6		4,226
Consumer:
Revolving line		—		—		—		—		—		—
Auto		38		—		38		46		—		46
Other		37		—		37		15		—		15
Total Consumer		75		—		75		61		—		61
Leases and other:
Leases		—		—		—		—		—		—
Other		25		—		25		24		—		24
Total Leases and other		25		—		25		24		—		24
Total loans	$	92,032	$	2,421	$	85,680	$	21,618	$	719	$	18,524

	December 31, 2020						December 31, 2021
Loan Segment and Type	Amortized Cost of Collateral Dependent Assets		Related Allowance for Credit Losses		Amortized Cost of Collateral Dependent Assets with no related Allowance		Amortized Cost of Collateral Dependent Assets		Related Allowance for Credit Losses		Amortized Cost of Collateral Dependent Assets with no related Allowance
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	29,684	$	4,828	$	5,830	$	82,845	$	2,421	$	76,493
Agriculture		4,086		—		4,086		—		—		—
Total Commercial and industrial		33,770		4,828		9,916		82,845		2,421		76,493
Specialty lending:
Asset-based lending		17,875		4,490		242		—		—		—
Factoring		1,561		173		—		—		—		—
Total Specialty lending		19,436		4,663		242		—		—		—
Commercial real estate:
Owner-occupied		16,539		—		16,539		2,764		—		2,764
Non-owner-occupied		—		—		—		—		—		—
Farmland		8,625		—		8,625		487		—		487
5+ Multi-family		—		—		—		—		—		—
1-4 Family construction		—		—		—		—		—		—
General construction		3,423		582		770		1,626		—		1,626
Total Commercial real estate		28,587		582		25,934		4,877		—		4,877
Consumer real estate:
HELOC		3,170		—		3,170		2,488		—		2,488
First lien: 1-4 family		2,468		54		2,047		1,647		—		1,647
Junior lien: 1-4 family		212		—		212		75		—		75
Total Consumer real estate		5,850		54		5,429		4,210		—		4,210
Consumer:
Revolving line		—		—		—		—		—		—
Auto		69		—		69		38		—		38
Other		19		—		19		37		—		37
Total Consumer		88		—		88		75		—		75
Leases and other:
Leases		—		—		—		—		—		—
Other		—		—		—		25		—		25
Total Leases and other		—		—		—		25		—		25
Total loans	$	87,731	$	10,127	$	41,609	$	92,032	$	2,421	$	85,680

A loan modification is considered a TDR when a concession has been granted to a debtor experiencing financial difficulties. The Company’s modifications generally include interest rate adjustments, principal reductions, and amortization and maturity date extensions. These modifications allow the debtor short-term cash relief to allow them to improve their financial condition. The Company’s restructured loans are considered collateral dependent and evaluated as part of the allowance for credit loss as described above in the Allowance for Credit Losses section of this note.

The Company had 0no commitments to lend to borrowers with loan modifications classified as TDRs as of December 31, ~~2021~~2022 and ~~2020.~~2021. The Company monitors loan payments on an on-going basis to determine if a loan is considered to have a payment default. Determination of payment default involves analyzing the economic conditions that exist for each customer and their ability to generate positive cash flows during the loan term.

For the year ended December 31, ~~2021,~~2022, the Company ~~has 0 new TDRs.~~had two commercial TDRs with a pre-modification loan balance of $5.1 million and a post-modification loan balance of $4.3 million. For the year ended December 31, ~~2020,~~2021, the Company ~~added 1 consumer real estate TDR with a pre- and post-modification loan balance of $441 thousand.~~had no new TDRs. For the years ended December 31, ~~2021~~2022 and ~~2020,~~2021, the Company had 0no TDRs for which there was a payment default within the 12 months following the restructure date.

This table provides detailed information about securities available for sale at December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

			Gross		Gross							Gross		Gross
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
2021	Cost		Gains		Losses			Value
2022										Cost		Gains		Losses			Value
U.S. Treasury	$	69,551	$	374	$	(751	)	$	69,174	$	804,158	$	58	$	(27,146	)	$	777,070
U.S. Agencies		121,681		3,252		(1	)		124,932		178,261		—		(6,965	)		171,296
Mortgage-backed		7,967,537		93,390		(95,872	)		7,965,055		4,574,905		92		(592,875	)		3,982,122
State and political subdivisions		3,270,160		161,674		(9,146	)		3,422,688		1,465,598		1,608		(104,799	)		1,362,407
Corporates		316,840		2,504		(1,498	)		317,846		401,059		—		(33,559	)		367,500
Collateralized loan obligations		76,815		4		—			76,819		353,969		32		(8,049	)		345,952
Total	$	11,822,584	$	261,198	$	(107,268	)	$	11,976,514	$	7,777,950	$	1,790	$	(773,393	)	$	7,006,347

			Gross		Gross							Gross		Gross
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
2020	Cost		Gains		Losses			Value
2021										Cost		Gains		Losses			Value
U.S. Treasury	$	29,911	$	829	$	—		$	30,740	$	69,551	$	374	$	(751	)	$	69,174
U.S. Agencies		89,554		6,395		—			95,949		121,681		3,252		(1	)		124,932
Mortgage-backed		5,266,394		202,944		(1,157	)		5,468,181		7,967,537		93,390		(95,872	)		7,965,055
State and political subdivisions		3,424,309		199,848		(538	)		3,623,619		3,270,160		161,674		(9,146	)		3,422,688
Corporates		77,566		3,649		(16	)		81,199		316,840		2,504		(1,498	)		317,846
Collateralized loan obligations											76,815		4		—			76,819
Total	$	8,887,734	$	413,665	$	(1,711	)	$	9,299,688	$	11,822,584	$	261,198	$	(107,268	)	$	11,976,514

The following table presents contractual maturity information for securities available for sale at December 31, ~~2021~~2022 (in thousands):

	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in 1 year or less	$	167,515	$	168,443	$	172,698	$	170,616
Due after 1 year through 5 years		748,552		759,638		1,677,013		1,612,729
Due after 5 years through 10 years		815,408		839,508		803,950		759,939
Due after 10 years		2,123,572		2,243,870		549,384		480,941
Total		3,855,047		4,011,459		3,203,045		3,024,225
Mortgage-backed securities		7,967,537		7,965,055		4,574,905		3,982,122
Total securities available for sale	$	11,822,584	$	11,976,514	$	7,777,950	$	7,006,347

Securities may be disposed of before contractual maturities due to sales by the Company or because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

There were no sales of securities available for sale in 2022. Proceeds from the sales of securities available for sale were $372.6 million ~~$315.9 million,~~ and ~~$412.0~~$315.9 million for 2021 and 2020, ~~and 2019,~~ respectively. There were no gross realized gains due to securities transactions in 2022. Securities transactions resulted in gross realized gains of $7.8 million for 2021 and $7.3 million for ~~2020, and $4.6 million for 2019.~~2020. There were no gross realized losses in 2022. The gross realized losses were $2 thousand for 2021 and $274 thousand for ~~2020, and $1.4 million for 2019.~~2020.

~~Securities available for sale with a fair value of~~There were $10.3 billion and $10.2 billion ~~and $7.8 billion at December 31, 2021 and December 31, 2020, respectively, were~~of securities pledged to secure U.S. Government deposits, other public deposits, certain trust deposits, derivative transactions, and repurchase ~~agreements.~~agreements at December 31, 2022 and December 31, 2021, respectively. There were no securities pledged at the Federal Reserve Discount Window at December 31, 2022. Of ~~these amounts,~~the amount pledged at December 31, 2021, securities with a fair value of $171.2 million ~~at December 31, 2021 and $371.5 million at December 31, 2020~~ were pledged at the Federal Reserve Discount Window but were unencumbered as of ~~those dates.~~that date.

Accrued interest on securities available for sale totaled ~~$45.8~~$32.1 million and ~~$42.6~~$45.8 million as of December 31, ~~2021~~2022 and ~~2020,~~2021, respectively, and is included in the Accrued income line on the Company’s Consolidated Balance Sheets. The total amount of accrued interest is excluded from the amortized cost of available securities presented above. Further, the Company has elected not to measure an ACL for accrued interest receivable.

The following table shows the Company’s available-for-sale investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	Less than 12 months							12 months or more							Total							Less than 12 months							12 months or more							Total
2021	Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses
2022																						Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses
Description of Securities
U.S. Treasury		4	$	58,867	$	(751	)		—	$	—	$	—			4	$	58,867	$	(751	)		61	$	688,208	$	(22,731	)		4	$	55,314	$	(4,415	)		65	$	743,522	$	(27,146	)
U.S. Agencies		1		11,149		(1	)		—		—		—			1		11,149		(1	)		27		140,877		(4,734	)		2		30,419		(2,231	)		29		171,296		(6,965	)
Mortgage-backed		344		5,404,968		(87,301	)		13		233,295		(8,571	)		357		5,638,263		(95,872	)		687		1,415,169		(102,881	)		205		2,557,035		(489,994	)		892		3,972,204		(592,875	)
State and political subdivisions		357		329,042		(6,969	)		31		44,939		(2,177	)		388		373,981		(9,146	)		1,744		936,865		(51,427	)		273		233,679		(53,372	)		2,017		1,170,544		(104,799	)
Corporates		152		193,899		(1,498	)		—		—		—			152		193,899		(1,498	)		86		146,615		(8,783	)		189		216,885		(24,776	)		275		363,500		(33,559	)
Collateralized loan obligations		—		—		—			—		—		—			—		—		—			41		326,659		(7,820	)		1		4,785		(229	)		42		331,444		(8,049	)
Total		858	$	5,997,925	$	(96,520	)		44	$	278,234	$	(10,748	)		902	$	6,276,159	$	(107,268	)		2,646	$	3,654,393	$	(198,376	)		674	$	3,098,117	$	(575,017	)		3,320	$	6,752,510	$	(773,393	)

	Less than 12 months							12 months or more							Total							Less than 12 months							12 months or more							Total
2020	Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses
2021																						Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses
Description of Securities
U.S. Treasury		—	$	—	$	—			—	$	—	$	—			—	$	—	$	—			4	$	58,867	$	(751	)		—	$	—	$	—			4	$	58,867	$	(751	)
U.S. Agencies		—		—		—			—		—		—			—		—		—			1		11,149		(1	)		—		—		—			1		11,149		(1	)
Mortgage-backed		16		174,234		(1,157	)		—		—		—			16		174,234		(1,157	)		344		5,404,968		(87,301	)		13		233,295		(8,571	)		357		5,638,263		(95,872	)
State and political subdivisions		24		55,653		(279	)		6		2,833		(259	)		30		58,486		(538	)		357		329,042		(6,969	)		31		44,939		(2,177	)		388		373,981		(9,146	)
Corporates		4		5,335		(16	)		—		—		—			4		5,335		(16	)		152		193,899		(1,498	)		—		—		—			152		193,899		(1,498	)
Collateralized loan obligations																							—		—		—			—		—		—			—		—		—
Total		44	$	235,222	$	(1,452	)		6	$	2,833	$	(259	)		50	$	238,055	$	(1,711	)		858	$	5,997,925	$	(96,520	)		44	$	278,234	$	(10,748	)		902	$	6,276,159	$	(107,268	)

The unrealized losses in the Company’s investments were caused by changes in interest rates, and not from a decline in credit of the underlying issuers. The U.S. Treasury, U.S. Agency, and GSE mortgage-backed securities are all considered to be agency-backed securities with no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. The changes in fair value in the agency-backed portfolios are solely driven by change in interest rates caused by changing economic conditions. The Company has no knowledge of any underlying credit issues and the cash flows underlying the debt securities have not changed and are not expected to be impacted by changes in interest rates.

For the State and political subdivision portfolio, the majority of the Company’s holdings are in general obligation bonds, which have a very low historical default rate due to issuers generally having unlimited taxing authority to service the debt. For the State and political, Corporates, and Collateralized loan obligations portfolios, the Company has a robust process for monitoring credit risk, including both pre-purchase and ongoing post-purchase

credit reviews and analysis. The Company monitors credit ratings of all bond issuers in these segments and reviews available financial data, including market and sector trends.

As of both December 31, ~~2021~~2022 and ~~2020,~~2021, there is 0no ACL related to the Company’s available-for-sale securities as the decline in fair value did not result from credit issues.

The following table ~~shows the Company’s held-to-maturity investments’ amortized cost, fair value, and gross unrealized gains and losses~~provides detailed information about securities held to maturity at December 31, ~~2021~~2022 and ~~2020,~~2021, respectively (in thousands):

2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Allowance for Credit Losses			Net Carrying Amount
2022															Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Allowance for Credit Losses			Net Carrying Amount
U.S. Agency															$	123,091	$	—	$	(4,567	)	$	118,524	$	—		$	123,091
Mortgage-backed																2,965,586		11		(392,530	)		2,573,067		—			2,965,586
State and political subdivisions	$	1,084,282	$	3,346	$	(38,954	)	$	1,048,674	$	(1,940	)	$	1,082,342		2,772,922		17,618		(201,472	)		2,589,068		(2,407	)		2,770,515
Mortgage-backed		396,134		14		(2,431	)		393,717		—			396,134
Total	$	1,480,416	$	3,360	$	(41,385	)	$	1,442,391	$	(1,940	)	$	1,478,476	$	5,861,599	$	17,629	$	(598,569	)	$	5,280,659	$	(2,407	)	$	5,859,192

The following table presents contractual maturity information for securities held to maturity at December 31, ~~2021~~2022 (in thousands):

	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in 1 year or less	$	17,440	$	17,797	$	82,196	$	81,893
Due after 1 year through 5 years		158,005		156,927		347,137		338,148
Due after 5 years through 10 years		489,816		481,785		743,395		704,133
Due after 10 years		419,021		392,165		1,723,285		1,583,418
Total		1,084,282		1,048,674		2,896,013		2,707,592
Mortgage-backed securities		396,134		393,717		2,965,586		2,573,067
Total securities held to maturity	$	1,480,416	$	1,442,391	$	5,861,599	$	5,280,659

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

There were 0no sales of securities held to maturity during 2022, 2021, ~~2020,~~ or ~~2019.~~2020.

During the year ended December 31, 2022, securities with an amortized cost of $4.1 billion and a fair value of $3.8 billion were transferred from the available-for-sale classification to the held-to-maturity classification as the Company has the positive intent and ability to hold these securities to maturity. The transfers of securities were made at fair value at the time of transfer. The unrealized holding gain or loss at the time of transfer is retained in AOCI and will be amortized over the remaining life of the securities, offsetting the related amortization of discount or premium on the transferred securities. No gains or losses were recognized at the time of the transfers. The amortized cost balance of securities held to maturity in the tables above includes a net unamortized unrealized loss of $247.0 million at December 31, 2022.

Accrued interest on securities held to maturity totaled $27.0 million and $5.3 million as of ~~both~~ December 31, 2022 and 2021, ~~and 2020~~respectively, and is included in the Accrued income line on the Company’s Consolidated Balance Sheets. The total amount of accrued interest is excluded from the amortized cost of held-to-maturity securities presented above. Further, the Company has elected not to measure an ACL for accrued interest receivable.

The following table shows the Company’s held-to-maturity investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	Less than 12 months					12 months or more					Total					Less than 12 months							12 months or more							Total
2021	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
2022																Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses
U.S. Agency																	11	$	118,524	$	(4,567	)		—	$	—	$	—			11	$	118,524	$	(4,567	)
Mortgage-backed																	254		2,342,656		(346,611	)		11		228,079		(45,919	)		265		2,570,735		(392,530	)
State and political subdivisions	$	585,153	$	(12,494	)	$	217,579	$	(26,460	)	$	802,732	$	(38,954	)		1,403		1,543,692		(177,957	)		61		617,805		(23,515	)		1,464		2,161,497		(201,472	)
Mortgage-backed		317,887		(2,431	)		—		—			317,887		(2,431	)
Total	$	903,040	$	(14,925	)	$	217,579	$	(26,460	)	$	1,120,619	$	(41,385	)		1,668	$	4,004,872	$	(529,135	)		72	$	845,884	$	(69,434	)		1,740	$	4,850,756	$	(598,569	)

	Less than 12 months					12 months or more					Total					Less than 12 months							12 months or more							Total
2020	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
2021																Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses			Count		Fair Value		Unrealized Losses
Mortgage-backed																	12	$	317,887	$	(2,431	)		—	$	—	$	—			12	$	317,887	$	(2,431	)
State and political subdivisions	$	132,271	$	(4,591	)	$	109,712	$	(10,302	)	$	241,983	$	(14,893	)		58		585,153		(12,494	)		28		217,579		(26,460	)		86		802,732		(38,954	)
Total	$	132,271	$	(4,591	)	$	109,712	$	(10,302	)	$	241,983	$	(14,893	)		70	$	903,040	$	(14,925	)		28	$	217,579	$	(26,460	)		98	$	1,120,619	$	(41,385	)

The unrealized losses in the Company’s held-to-maturity portfolio were caused by changes in the interest rate environment. The U.S. Agency and GSE mortgage-backed securities are considered to be agency-backed securities with no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. ~~The changes in fair value in~~Therefore, the ~~agency-backed~~Company’s expected lifetime loss for these portfolios ~~are solely driven by change in interest rates caused by changing economic conditions.~~is zero and there is no ACL recorded for these portfolios. The Company has no knowledge of any underlying credit issues and the cash flows underlying the debt securities have not changed and are not expected to be impacted by changes in interest rates. ~~As of December 31, 2021, there is no ACL related to the Company’s held-to-maturity mortgage-backed securities as the decline in fair value did not result from credit issues.~~

~~The underlying bonds in~~For the ~~Company’s held-to-maturity~~ State and political ~~subdivisions~~subdivision portfolio, the Company’s holdings are in general obligation bonds as well as private placement bonds, which have very low historical default rates due to issuers generally having unlimited taxing authority to service the debt. The Company has a robust process for monitoring credit risk, including both pre-purchase and ongoing post-purchase credit reviews and analysis. The Company monitors credit ratings of all bond ~~portfolio~~issuers in these segments and reviews available financial data, including market and sector trends. The underlying bonds are evaluated for credit losses in conjunction with management’s estimate of the ACL based on credit rating.

The following table shows the amortized cost basis by credit rating of the Company’s held-to-maturity State and political subdivisions bond investments at December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	Amortized Cost Basis by Credit Rating - HTM Debt Securities										Amortized Cost Basis by Credit Rating - HTM Debt Securities
2021	A		BBB		BB		CCC-C		Total
2022											AAA		AA		A		BBB		BB		CCC-C		Total
State and political subdivisions:
Competitive	$	372,696	$	605,104	$	20,678	$	870	$	999,348	$	—	$	—	$	435,953	$	618,517	$	17,120	$	2,934	$	1,074,524
Utilities		55,096		29,838		—		—		84,934		759,539		824,386		84,293		29,599		581		—		1,698,398
Total state and political subdivisions	$	427,792	$	634,942	$	20,678	$	870	$	1,084,282	$	759,539	$	824,386	$	520,246	$	648,116	$	17,701	$	2,934	$	2,772,922

Competitive held-to-maturity securities include not-for-profit enterprises that provide public functions such as housing, higher education, or healthcare, but do so in a competitive environment. It also includes project financings that can have relatively high enterprise risk, such as deals backed by revenues from sports or convention facilities or start-up transportation revenues.

Utilities are public enterprises providing essential services with a monopoly or near-monopoly over the service area. This includes environmental utilities (water, sewer, solid waste), power utilities (electric distribution and generation, gas), and transportation utilities (airports, parking, toll roads, mass transit, ports).

All held-to-maturity securities were current and not past due at December 31, 2022.

The following table presents the aging of past due held-to-maturity securities at December 31, 2021 (in thousands):

~~All held-to-maturity securities were current and not past due at December 31, 2020.~~

The net unrealized loss on trading securities was $26 thousand as of December 31, 2022. The net unrealized gain on trading securities was $2 thousand ~~$13 thousand,~~ and $1$13 thousand as of December 31, 2021, ~~2020,~~ and ~~2019,~~2020, respectively. Net unrealized gains and losses are included in trading and investment banking income on the Consolidated Statements of Income. Securities sold not yet purchased totaled ~~$3.2~~$3.5 million and ~~$2.2~~$3.2 million at December 31, ~~2021~~2022 and ~~2020,~~2021, respectively, and are classified within the Other liabilities line of the Company’s Consolidated Balance Sheets.

The table below provides detailed information for Other securities at December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	December 31,				December 31,
	2021		2020		2022		2021
FRB and FHLB stock	$	36,222	$	33,222	$	41,472	$	36,222
Equity securities with readily determinable fair values		64,149		134,197		10,782		64,149
Equity securities without readily determinable fair values		226,727		128,634		297,504		226,727
Total	$	327,098	$	296,053	$	349,758	$	327,098

Investment in FRB stock is based on the capital structure of the investing bank, and investment in FHLB stock is mainly tied to the level of borrowings from the FHLB. These holdings are carried at cost. Equity securities with readily determinable fair values are generally traded on an exchange and market prices are readily available. Equity

securities without readily determinable fair values include ~~PCM alternative investments in hedge funds and private equity funds, which are accounted for as equity-method investments. Also included in this category are~~ equity investments which are held by a subsidiary qualified as a Small Business Investment Company, as well as investments in low-income housing partnerships within the areas the Company serves. ~~During the first quarter of 2021, the Company sold its membership interests in PCM.~~ Unrealized gains or losses on equity securities with and without readily determinable fair values are recognized in the Investment securities gains, net line of the Company’s Consolidated Statements of Income.

The following table presents the components of Investment securities gains, net for the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019~~2020 (in thousands):

	Year Ended December 31,									Year Ended December 31,
	2021			2020			2019			2022			2021			2020
Investment securities gains, net
Available-for-sale debt securities:
Gains realized on sales	$	7,819		$	7,255		$	4,636		$	—		$	7,819		$	7,255
Losses realized on sales		(2	)		(274	)		(1,418	)		—			(2	)		(274	)
Equity securities with readily determinable fair values:
Fair value adjustments, net		(10,881	)		110,768			—			(8,073	)		(10,881	)		110,768
Equity securities without readily determinable fair values:
Fair value adjustments, net		8,121			2,885			(973	)		355			8,121			2,885
Sales											66,162			—			—
Total investment securities gains, net	$	5,057		$	120,634		$	2,245		$	58,444		$	5,057		$	120,634

During 2022, the Company sold the entirety of its Visa Inc. Class B common shares in a cash transaction which resulted in a pre-tax gain of $66.2 million. Prior to the sale, the Visa Inc. Class B shares had no carrying value on the Company’s Consolidated Balance Sheets as the Company had no historical cost basis in the shares.

The Company regularly enters into agreements for the purchase of securities with simultaneous agreements to resell (resell agreements). The agreements permit the Company to sell or repledge these securities. Resell agreements were ~~$1.2 billion~~$951.6 million and ~~$1.7~~$1.2 billion at December 31, ~~2021~~2022 and ~~2020,~~2021, respectively. The Company obtains possession of collateral with a market value equal to or in excess of the principal amount loaned under resell agreements.

Certain executive officers and directors of the Company and the Bank, including companies in which those persons are principal holders of equity securities or are general partners, borrow in the normal course of business from the Bank. All such loans have been made on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with unrelated parties. In addition, all such loans are current as to repayment terms.

For the years ~~2021~~2022 and ~~2020,~~2021, an analysis of activity with respect to such aggregate loans to related parties appears below (in thousands):

	Year Ended December 31,						Year Ended December 31,
	2021			2020			2022			2021
Balance – beginning of year	$	165,395		$	207,734		$	279,717		$	165,395
New loans		176,226			39,217			192,595			176,226
Repayments		(61,780	)		(81,556	)		(109,459	)		(61,780	)
Reduction due to change in reportable loans		(124	)		—			—			(124	)
Balance – end of year	$	279,717		$	165,395		$	362,853		$	279,717

Changes in the carrying amount of goodwill for the years ended December 31, ~~2021~~2022 and December 31, ~~2020~~2021 by operating segment are as follows (in thousands):

											Commercial Banking			Institutional Banking		Personal Banking			Total
Balances as of January 1, 2022											$	59,419		$	51,332	$	63,767		$	174,518
Healthcare savings account business acquisition												—			25,160		—			25,160
Branch acquisition												3,694			—		4,013			7,707
Balances as of December 31, 2022											$	63,113		$	76,492	$	67,780		$	207,385
	Commercial Banking		Institutional Banking		Personal Banking			Total					��
Balances as of January 1, 2021	$	59,419	$	51,332	$	70,116		$	180,867		$	59,419		$	51,332	$	70,116		$	180,867
Sale of component of business segment		—		—		(6,349	)		(6,349	)		—			—		(6,349	)		(6,349	)
Balances as of December 31, 2021	$	59,419	$	51,332	$	63,767		$	174,518		$	59,419		$	51,332	$	63,767		$	174,518

Balances as of January 1, 2020	$	59,419	$	51,332	$	70,116		$	180,867
Balances as of December 31, 2020	$	59,419	$	51,332	$	70,116		$	180,867

Following are the intangible assets that continue to be subject to amortization as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	As of December 31, 2021						As of December 31, 2022
	Core Deposit Intangible Assets		Customer Relationships		Total		Core Deposit Intangible Assets		Customer Relationships		Total
Gross carrying amount	$	50,059	$	71,167	$	121,226	$	16,661	$	114,978	$	131,639
Accumulated amortization		49,623		57,187		106,810		14,827		38,088		52,915
Net carrying amount	$	436	$	13,980	$	14,416	$	1,834	$	76,890	$	78,724

	As of December 31, 2020						As of December 31, 2021
	Core Deposit Intangible Assets		Customer Relationships		Total		Core Deposit Intangible Assets		Customer Relationships		Total
Gross carrying amount	$	50,059	$	89,928	$	139,987	$	50,059	$	71,167	$	121,226
Accumulated amortization		48,746		70,185		118,931		49,623		57,187		106,810
Net carrying amount	$	1,313	$	19,743	$	21,056	$	436	$	13,980	$	14,416

On November 18, 2022, the Company acquired a healthcare savings account business, which included $383.0 million of deposits. The purchase resulted in recognition of $25.2 million of goodwill and a $67.0 million customer relationship intangible asset.

On March 28, 2022, the Company acquired a bank branch. Included in the branch acquisition were $43.0 million in loans and $226.8 million of deposits. The purchase resulted in recognition of $7.7 million of goodwill and a $2.3 million core deposit intangible asset.

On March 31, 2021, the Company sold its membership interests in its PCM and UMB Merchant Banc, LLC subsidiaries, components of its Personal Banking segment. The sale included disposition of $6.3 million of goodwill and $1.9 million of net unamortized customer relationship intangibles.

Amortization expense for the years ended December 31, 2022, 2021, and 2020 ~~and 2019~~ was $5.0 million, $4.8 million, ~~$6.5 million,~~ and ~~$5.5~~$6.5 million, respectively.

The following table discloses the estimated amortization expense of intangible assets in future years (in thousands):

For the year ending December 31, 2022	$	3,920
For the year ending December 31, 2023		3,323	$	8,366
For the year ending December 31, 2024		2,704		7,636
For the year ending December 31, 2025		2,608		7,429
For the year ending December 31, 2026		1,861		6,569
For the year ending December 31, 2027				4,597

	December 31,						December 31,
	2021			2020			2022			2021
Land	$	41,513		$	42,323		$	41,368		$	41,513
Buildings and leasehold improvements		352,954			351,957			361,346			352,954
Equipment		181,218			176,018			187,208			181,218
Software		273,342			264,251			285,833			273,342
Total		849,027			834,549			875,755			849,027
Accumulated depreciation		(357,503	)		(341,379	)		(371,958	)		(357,503	)
Accumulated amortization		(220,591	)		(200,075	)		(240,148	)		(220,591	)
Premises and equipment, net	$	270,933		$	293,095		$	263,649		$	270,933

Premises and equipment depreciation and amortization expenses were $46.8 million in 2022, $49.6 million in 2021, and $56.1 million in ~~2020, and $50.8 million in 2019.~~2020.

The Company primarily has leases of real estate, including buildings, or portions of buildings, used for bank branches or general office operations. These leases have remaining lease terms that range from less than one year to 2625 years and most leases include one or more options to renew, with renewal terms that can extend the lease term from one month to 35 years or more. The exercise of lease renewal options is at the Company’s sole discretion. No renewal options were included in the Company’s calculation of its lease liabilities or right of use assets since it is not reasonably certain that the Company will exercise these options. ~~NaN~~No leases include options to purchase the leased property. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. An insignificant number of leases include variable lease payments that are based on the Consumer Price Index (CPI). For the calculation of the lease liability and right of use asset for these leases, the Company has included lease payments based on CPI as of the effective date of ASC 842. The Company has made the election not to separate lease and non-lease components for existing real estate leases when determining consideration within the lease contract. All of the Company’s lease agreements are classified as operating leases under ASC 842.

As of December 31, ~~2021~~2022 and ~~2020,~~2021, right-of-use assets of ~~$57.1~~$54.6 million and ~~$63.4~~$57.1 million, respectively, were included as part of Other assets on the Company’s Consolidated Balance Sheets. In addition, lease liabilities of ~~$64.6~~$63.5 million and ~~$71.7~~$64.6 million were included as part of Other liabilities on the Company’s Consolidated Balance

Sheets as of December 31, ~~2021~~2022 and ~~2020,~~2021, respectively. For the years ended December 31, 2022, 2021, and 2020, lease expense of ~~$11.8~~$11.9 million, $11.8 million, and $12.8 million, respectively, was recognized as part of Occupancy expense on the Company’s Consolidated Statements of Income. For the years ended December 31, 2022, 2021, and 2020, cash payments of ~~$12.6~~$12.9 million, $12.6 million, and $12.3 million, respectively, were made for leases included in the measurement of lease liabilities and are classified as cash flows from operating activities in the Company’s Consolidated Statements of Cash Flows. For the years ended December 31, ~~2021~~2022 and ~~2020,~~2021, leased assets obtained in exchange for new operating lease liabilities were ~~$2.4~~$11.3 million and ~~$7.2~~$2.4 million, respectively. As of December 31, ~~2021~~2022 and ~~2020,~~2021, the weighted average remaining lease terms of the Company’s leases were 7.0 years and 7.5 years ~~and 8.2 years,~~, respectively, and the weighted average discount rates were ~~2.74%~~2.96% and ~~2.85%~~2.74%, respectively.

As of December 31, ~~2021,~~2022, future minimum lease payments under non-cancelable operating leases were as follows (in thousands):

2022	$	12,398
2023		10,594	$	12,278
2024		9,506		11,652
2025		8,478		10,005
2026		7,897		9,326
2027				8,297
Thereafter		23,365		19,430
Total lease payments		72,238		70,988
Less: Interest		7,621		7,516
Present value of lease liabilities	$	64,617	$	63,472

The aggregate contractual repayment of long-term debt of ~~$273.2~~$413.1 million is due after December 31, ~~2026.~~2027.

The Company assumed long-term debt obligations from the acquisition of Marquette consisting of debt obligations payable to four unconsolidated trusts (Marquette Capital Trust I, Marquette Capital Trust II, Marquette Capital Trust III, and Marquette Capital Trust IV) that previously issued trust preferred securities. These long-term debt obligations had an aggregate contractual balance of $103.1 million and had a carrying value of ~~$73.2~~$74.6 million as of December 31, ~~2021.~~2022. Interest rates on trust preferred securities are tied to the three-month LIBOR rate with spreads ranging from 133 basis points to 160 basis points and reset quarterly. The trust preferred securities have maturity dates ranging from January 2036 to September 2036.

In September 2020, the Company issued $200.0 million of 3.70% fixed-to-fixed rate subordinated notes that mature on September 17, 2030. The notes bear interest at the rate of 3.70% per annum, payable semi-annually on each March 17 and September 17. The Company may redeem the notes, in whole or in part, on September 17, 2025, or on any interest payment date thereafter. Unamortized debt issuance costs related to these notes totaled ~~$1.7~~$1.2 million as of December 31, ~~2021.~~2022. Proceeds from the issuance of the notes were used for general corporate purposes, including contributing Tier 1 capital into the Bank.

In September 2022, the Company issued $110.0 million of 6.25% fixed-to-fixed rate subordinated notes that mature on September 28, 2032. The notes bear interest at the rate of 6.25% per annum, payable semi-annually on each March 28 and September 28. The Company may redeem the notes, in whole or in part, on September 28, 2027, or on any interest payment date thereafter. Unamortized debt issuance costs related to these notes totaled $2.0 million as of December 31, 2022. Proceeds from the issuance of the notes were used for general corporate purposes, including contributing Tier 1 capital into the Bank.

The Company is a member bank of the FHLB of Des Moines. Through this relationship, the Company purchased $10.0 million of FHLB stock and has access to additional liquidity and funding sources through FHLB advances. The Company’s borrowing capacity is dependent upon the amount of collateral the Company places at the FHLB. The Company’s borrowing capacity with the FHLB was ~~$1.6~~$1.9 billion as of December 31, ~~2021.~~2022. The Company had 0no outstanding FHLB advances at FHLB Des Moines as of December 31, ~~2021.~~2022.

The Company has a revolving line of credit with Wells Fargo Bank, N.A. which allows the Company to borrow up to $30.0 million for general working capital purposes. The interest rate applied to borrowed balances will be at the Company’s option either ~~1.25%~~1.40% above ~~LIBOR~~Term SOFR or 1.75% below the prime rate on the date of an advance.

The Company pays ~~0.4~~%0.4% unused commitment fee for unused portions of the line of credit. The Company currently has 0no outstanding balance on this line of credit.

The Company enters into sales of securities with simultaneous agreements to repurchase (repurchase agreements). The Company utilizes repurchase agreements to facilitate the needs of customers and to facilitate secured short-term funding needs. Repurchase agreements are stated at the amount of cash received in connection with the transaction. The Company monitors collateral levels on a continuous basis and may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with the Company’s safekeeping agents. The amounts received under these agreements represent short-term borrowings. The amount outstanding at December 31, 2022, was $2.2 billion, with accrued interest payable of $1.4 million. The amount outstanding at December 31, 2021, was $3.2 billion, with accrued interest payable of $245 ~~thousand. The amount outstanding at December 31, 2020, was $2.2 billion, with accrued interest payable of $326~~ thousand.

The carrying amounts and market values of the securities and the related repurchase liabilities and weighted average interest rates of the repurchase liabilities (grouped by maturity of the repurchase agreements) were as follows as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	As of December 31, 2021							As of December 31, 2022
	Securities Fair Market Value		Repurchase Liabilities		Weighted Average Interest Rate			Securities Fair Market Value		Repurchase Liabilities		Weighted Average Interest Rate
Maturity of the Repurchase Liabilities
2 to 29 days	$	2,797,268	$	2,820,788		0.19	%	$	1,756,837	$	1,869,186		3.32	%
30 to 90 Days		414,091		404,800		0.70			295,901		290,501		4.59
Over 90 Days		250		250		0.01
Total	$	3,211,609	$	3,225,838		0.25	%	$	2,052,738	$	2,159,687		3.49	%

	As of December 31, 2020							As of December 31, 2021
	Securities Fair Market Value		Repurchase Liabilities		Weighted Average Interest Rate			Securities Fair Market Value		Repurchase Liabilities		Weighted Average Interest Rate
Maturity of the Repurchase Liabilities
2 to 29 days	$	1,625,230	$	1,759,559		0.34	%	$	2,797,268	$	2,820,788		0.19	%
30 to 90 Days		504,435		489,302		1.17			414,091		404,800		0.70
Over 90 Days		1,005		1,000		—			250		250		0.01
Total	$	2,130,670	$	2,249,861		0.52	%	$	3,211,609	$	3,225,838		0.25	%

The table below presents the remaining contractual maturities of repurchase agreements outstanding at December 31, ~~2021~~2022 and ~~2020,~~2021, in addition to the various types of marketable securities that have been pledged as collateral for these borrowings (in thousands):

	As of December 31, 2021								As of December 31, 2022
	Remaining Contractual Maturities of the Agreements								Remaining Contractual Maturities of the Agreements
	2-29 days		30-90 days		Over 90 Days		Total		2-29 days		30-90 days		Total
Repurchase agreements, secured by:
U.S. Treasury									$	33,888	$	—	$	33,888
U.S. Agency	$	2,820,788	$	404,800	$	250	$	3,225,838		1,835,298		290,501		2,125,799
Total repurchase agreements	$	2,820,788	$	404,800	$	250	$	3,225,838	$	1,869,186	$	290,501	$	2,159,687

	As of December 31, 2020								As of December 31, 2021
	Remaining Contractual Maturities of the Agreements								Remaining Contractual Maturities of the Agreements
	2-29 days		30-90 days		Over 90 Days		Total		2-29 days		30-90 days		Over 90 Days		Total
Repurchase agreements, secured by:
U.S. Treasury	$	2,440	$	—	$	—	$	2,440
U.S. Agency		1,757,119		489,302		1,000		2,247,421	$	2,820,788	$	404,800	$	250	$	3,225,838
Total repurchase agreements	$	1,759,559	$	489,302	$	1,000	$	2,249,861	$	2,820,788	$	404,800	$	250	$	3,225,838

Payment of dividends by the Bank to the parent company is subject to various regulatory restrictions. For national banks, the governing regulatory agency must approve the declaration of any dividends generally in excess of the sum of net income for that year and retained net income for the preceding two years.

The Bank maintains a reserve balance with the FRB as required by law. During ~~2021,~~2022, this amount averaged ~~$4.0~~$2.3 billion, compared to ~~$1.2~~$4.0 billion in ~~2020.~~2021.

At December 31, ~~2021,~~2022, the Company is required to have minimum common equity tier 1, tier 1, and total capital ratios of 4.5%, 6.0% and 8.0%, respectively. The Company’s actual ratios at that date were ~~12.05%~~10.62%, ~~12.05%~~10.62% and ~~13.88%~~12.50%, respectively. The Company is required to have a minimum leverage ratio of 4.0%, and the leverage ratio at December 31, ~~2021,~~2022, was ~~7.61%~~8.43%.

As of December 31, ~~2021,~~2022, the most recent notification from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized the Bank must maintain total risk-based, tier 1 risk-based, common equity tier 1, and tier 1 leverage ratios of 10.0%, 8.0%, 6.5%, and 5.0%, respectively. There are no conditions or events that have occurred since the receipt of the most recent notification that management believes have changed the Bank’s categorization.

In addition, under amendments to the BHCA introduced by the Dodd-Frank Act and commonly known as the Volcker Rule, the Company and its subsidiaries are subject to extensive limits on proprietary trading and on owning or sponsoring hedge funds and private-equity funds. The limits on proprietary trading are largely focused on purchases or sales of financial instruments by a banking entity as principal primarily for the purpose of short-term resale, benefitting from actual or expected short-term price movements, or realizing short-term arbitrage profits. The limits on owning or sponsoring hedge funds and private-equity funds are designed to ensure that banking entities generally maintain only small positions in managed or advised funds and are not exposed to significant losses arising directly or indirectly from them. The Volcker Rule also provides for increased capital charges, quantitative limits, rigorous compliance programs, and other restrictions on permitted proprietary trading and fund activities, including a prohibition on transactions with a covered fund that would constitute a covered transaction under Sections 23A and 23B of the Federal Reserve Act. The fund activities of the Company and its subsidiaries are in conformance with the Volcker Rule.

Actual capital amounts as well as required and well-capitalized common equity tier 1, tier 1, total and tier 1 leverage ratios as of December 31, ~~2021~~2022 and ~~2020~~2021 for the Company and the Bank are as follows (in thousands):

	2021															2022
	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions					Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
Common Equity Tier 1 Capital:
UMB Financial Corporation	$	2,885,576		12.05	%	$	1,077,971		4.50	%	$	N/A		N/A	%	$	3,129,030		10.62	%	$	1,325,893		4.50	%	$	N/A		N/A	%
UMB Bank, n. a.		2,734,377		11.53			1,067,154		4.50			1,541,444		6.50			3,184,837		10.88			1,317,571		4.50			1,903,158		6.50
Tier 1 Capital:
UMB Financial Corporation		2,885,576		12.05			1,437,295		6.00		N/A		N/A				3,129,030		10.62			1,767,857		6.00		N/A		N/A
UMB Bank, n. a.		2,734,377		11.53			1,422,872		6.00			1,897,162		8.00			3,184,837		10.88			1,756,762		6.00			2,342,349		8.00
Total Capital:
UMB Financial Corporation		3,324,284		13.88			1,916,393		8.00		N/A		N/A				3,682,619		12.50			2,357,142		8.00		N/A		N/A
UMB Bank, n. a.		2,902,996		12.24			1,897,162		8.00			2,371,453		10.00			3,359,158		11.47			2,342,349		8.00			2,927,936		10.00
Tier 1 Leverage:
UMB Financial Corporation		2,885,576		7.61			1,517,616		4.00		N/A		N/A				3,129,030		8.43			1,483,953		4.00		N/A		N/A
UMB Bank, n. a.		2,734,377		7.26			1,506,293		4.00			1,882,866		5.00			3,184,837		8.46			1,506,443		4.00			1,883,054		5.00

	2020															2021
Common Equity Tier 1 Capital:
UMB Financial Corporation	$	2,547,634		12.10	%	$	947,486		4.50	%	$	N/A		N/A	%	$	2,885,576		12.05	%	$	1,077,971		4.50	%	$	N/A		N/A	%
UMB Bank, n. a.		2,492,571		11.92			941,036		4.50			1,359,275		6.50			2,734,377		11.53			1,067,154		4.50			1,541,444		6.50
Tier 1 Capital:
UMB Financial Corporation		2,547,634		12.10			1,263,315		6.00		N/A		N/A				2,885,576		12.05			1,437,295		6.00		N/A		N/A
UMB Bank, n. a.		2,492,571		11.92			1,254,715		6.00			1,672,954		8.00			2,734,377		11.53			1,422,872		6.00			1,897,162		8.00
Total Capital:
UMB Financial Corporation		3,002,545		14.26			1,684,420		8.00		N/A		N/A				3,324,284		13.88			1,916,393		8.00		N/A		N/A
UMB Bank, n. a.		2,679,844		12.81			1,672,954		8.00			2,091,192		10.00			2,902,996		12.24			1,897,162		8.00			2,371,453		10.00
Tier 1 Leverage:
UMB Financial Corporation		2,547,634		8.37			1,217,386		4.00		N/A		N/A				2,885,576		7.61			1,517,616		4.00		N/A		N/A
UMB Bank, n. a.		2,492,571		8.28			1,203,559		4.00			1,504,449		5.00			2,734,377		7.26			1,506,293		4.00			1,882,866		5.00

The Company has a discretionary noncontributory profit-sharing plan, which features an employee stock ownership plan. This plan is for the benefit of substantially all eligible officers and employees of the Company and its subsidiaries. The Company recognized expense related to such contributions of ~~$2.5~~$2.0 million, ~~$2.0~~$2.5 million, and $2.0 million for the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019,~~2020, respectively.

The Company has a qualified 401(k) profit sharing plan that permits participants to make contributions by salary deduction, to which the Company makes matching contributions. The Company recognized expense related to matching contributions of $13.6 million, $11.4 million, ~~$11.0 million,~~ and ~~$10.6~~$11.0 million for the years ended December 31, 2022, 2021 ~~2020~~ and ~~2019,~~2020, respectively.

The Company recognized ~~$40 thousand, $0.6~~$20.6 million, $18.6 million, and $1.3 million in expense related to outstanding stock options and $1.9 million, $3.4 million, and $6.9 million in expense related to outstanding restricted stock grants for the years ended December 31, 2021, 2020, and 2019, respectively. The Company also recognized $18.6 million, $10.5 ~~million, and $6.0~~ million in expense related to outstanding restricted stock unit grants for the years ended December 31, 2022, 2021 ~~2020~~ and ~~2019,~~2020, respectively. The Company ~~had $0.2~~recognized $196 thousand, $1.9 million, ~~of unrecognized compensation~~and $3.4 million in expense related to outstanding restricted stock grants for the years ended December 31, 2022, 2021, and ~~$15.2~~2020, respectively. The Company also recognized $40 thousand and $596 thousand in expense related to outstanding stock options for the years ended December 31, 2021 and 2020, respectively. The Company did not recognize any expense related to outstanding stock options for the year ended December 31, 2022. The Company had $18.2 million of unrecognized compensation expense related to outstanding restricted stock unit grants at December 31, ~~2021.~~2022.

At the April 26, 2005 shareholders’ meeting, the shareholders of the Company approved the UMB Financial Corporation Long-Term Incentive Compensation Plan (LTIP) which became effective as of January 1, 2005. The LTIP permits the issuance to selected officers of the Company service-based restricted stock grants, performance-based restricted stock grants and non-qualified stock options. Service-based restricted stock grants contain a service requirement. The performance-based restricted grants contain performance and service requirements. The non-qualified stock option grants contain a service requirement.

At the April 23, 2013 shareholders’ meeting, the shareholders of the Company approved amendments to the LTIP Plan, including increasing the number of shares of the Company’s stock reserved for issuance under the Plan from 5.25 million shares to 7.44 million shares. Additionally, the shareholders approved increasing the maximum benefits any one eligible employee may receive under the plan during any one fiscal year from $1 million to $2 million taking into account the value of all stock options and restricted stock received.

At the April 24, 2018 shareholders’ meeting, the shareholders of the Company approved the UMB Financial Corporation Omnibus Incentive Compensation Plan which became effective as of April 24, 2018 and replaced the LTIP plan. No service-based restricted stock grants, performance-based restricted stock grants or non-qualified stock options have been issued under the LTIP since 2018.

The service-based restricted stock grants issued under the LTIP contain a service requirement with varying vesting schedules. The majority of these grants issued in 2016 ~~and beyond utilize~~through 2018 utilized a vesting schedule in which 50% of the shares vest after two years of service, 75% after three years of service and 100% after four years of service. Certain other grants ~~utilize~~utilized vesting schedules in which the grants vest ratably over the requisite service period or contain a three-year cliff vesting.

The dividends on service-based restricted stock grants are treated as two separate transactions. First, cash dividends are paid on the restricted stock. Those cash dividends are then paid to purchase additional shares of restricted stock. Dividends earned as additional shares of restricted stock have the same terms as the associated grant. The dividends paid on the stock are recorded as a reduction to retained earnings, similar to all dividend transactions.

The table below discloses the status of the service-based restricted shares during ~~2021:~~2022:

	Number of Shares			Weighted Average Grant Date Fair Value		Number of Shares			Weighted Average Grant Date Fair Value
Service-Based Restricted Stock
Nonvested - December 31, 2020		66,298		$	72.98
Nonvested - December 31, 2021							23,618		$	72.28
Granted		—			—		—			—
Canceled		(1,484	)		72.80		—			—
Vested		(41,196	)		73.39		(23,618	)		72.28
Nonvested - December 31, 2021		23,618		$	72.28
Nonvested - December 31, 2022							—		$	—

~~As of December 31, 2021, there was $0.2 million of unrecognized compensation cost related to the nonvested shares. The cost is expected to be recognized over a period of 0.1 years.~~ Total fair value of shares vested during the years ended December 31, 2022, 2021, and 2020 ~~and 2019~~ was $2.5 million, $3.2 million, ~~$9.2 million,~~ and ~~$8.7~~$9.2 million, respectively.

The non-qualified stock options carry a service requirement and grants issued prior to 2016 ~~will vest~~vested 50% after three years, 75% after four years and 100% after five years, while grants issued in 2016 ~~and beyond will vest~~through 2018 vested 50% after two years, 75% after three years and 100% after four years.

The table below discloses the information relating to non-qualified option activity in ~~2021~~2022 under the LTIP:

	Number of Shares			Weighted Average Price Per Share		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value		Number of Shares			Weighted Average Price Per Share		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Stock Options Under the LTIP
Outstanding - December 31, 2020		527,941		$	54.89
Outstanding - December 31, 2021											171,340		$	60.19
Granted		—			—						—			—
Canceled		(319	)		75.25						—			—
Expired		(3,046	)		62.71						(3,783	)		56.86
Exercised		(353,236	)		52.23						(29,699	)		51.84
Outstanding - December 31, 2021		171,340		$	60.19		3.7	$	7,867,900
Exercisable - December 31, 2021		171,340		$	60.19		3.7	$	7,867,900
Outstanding - December 31, 2022											137,858		$	62.08		3.0	$	2,955,637
Exercisable - December 31, 2022											137,858		$	62.08		3.0	$	2,955,637

There were no options granted during 2022, 2021, ~~2020,~~ or ~~2019.~~2020. The total intrinsic value of options exercised during the years ended December 31, 2022, 2021, and 2020, ~~and 2019,~~ was $1.2 million, $12.9 million ~~$2.0 million~~ and ~~$1.6~~$2.0 million, respectively. As of December 31, ~~2021,~~2022, there was 0no unrecognized compensation cost related to the nonvested options.

Cash received from options exercised under all share-based compensation plans was $1.5 million, $18.4 million, ~~$4.6 million,~~ and ~~$3.8~~$4.6 million for the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019,~~2020, respectively. The tax benefit realized for stock options exercised was $2.2 million, $2.6 million, ~~$345 thousand,~~ and ~~$766~~$345 thousand for the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019,~~2020, respectively.

The Company has no specific policy to repurchase common shares to mitigate the dilutive impact of options; however, the Company has historically made adequate discretionary repurchases of common shares in an amount that exceeds stock option exercise activity. See a description of the Company’s Repurchase Authorizations in Note 14, “Common Stock and Earnings Per Share,” in the Notes to the Consolidated Financial Statements provided in Item 8 of this report.

At the April 24, 2018 shareholders’ meeting, the shareholders of the Company approved the UMB Financial Corporation Omnibus Incentive Compensation Plan (OICP) which became effective as of April 24, 2018. The OICP permits the issuance to key employees of the Company various types of awards, including stock options, restricted stock and restricted stock units, performance awards and other stock-based awards. Service-based restricted stock unit awards contain a service requirement and the performance-based restricted stock unit awards contain performance and service requirements. The number of shares of the Company’s stock reserved for issuance under the OICP is 5.40 million shares.

The service-based restricted stock unit awards are payable in shares of stock and the majority contain a service requirement with a four-year graded vesting schedule in which 50% of the units are vested after two years, 75% are vested after three years, and 100% are vested after four years. Certain other grants contain a service requirement with either a two-year cliff vesting or a three-year graded vesting schedule in which 50% of the units vest after two years of service and the remaining 50% vest after three years of service.

The performance-based restricted stock unit awards are payable in shares of stock and contain a service and a performance requirement. The performance requirement is based on two predetermined performance requirements over a three-year period. The service requirement portion is a three-year cliff vesting. If the minimum performance requirement is not met, the participants do not receive the shares.

The dividends on service-based restricted stock units are treated as two separate transactions. First, cash dividends are paid on the restricted stock units. Those cash dividends are then paid to purchase additional shares of restricted stock units. Dividends earned as additional shares of restricted stock units have the same terms as the associated grant. The dividends paid on the stock are recorded as a reduction to retained earnings, similar to all dividend transactions. Dividends are not paid on performance-based restricted stock units.

The table below discloses the status of the service-based restricted stock units during ~~2021:~~2022:

	Number of Units			Weighted Average Price Per Unit		Number of Units			Weighted Average Price Per Unit
Service Based Restricted Stock Units Under the OICP
Nonvested - December 31, 2020		319,798		$	66.25
Nonvested - December 31, 2021							363,148		$	70.47
Granted		150,328			76.83		156,869			98.76
Canceled		(24,749	)		69.43		(27,880	)		80.54
Vested		(82,229	)		66.01		(112,151	)		66.32
Nonvested - December 31, 2021		363,148		$	70.47
Nonvested - December 31, 2022							379,986		$	82.64

As of December 31, ~~2021,~~2022, there was ~~$11.9~~$14.5 million of unrecognized compensation cost related to the nonvested service-based restricted stock units. The cost is expected to be recognized over a period of 2.5 years. Total fair value of units vested during the years ended December 31, 2022, 2021, and 2020 was $11.4 million, $6.7 million, and $0.3 million, respectively.~~There were 0 units vested during 2019.~~

The table below discloses the status of the performance-based restricted stock units during ~~2021:~~2022:

	Number of Units			Weighted Average Price Per Unit		Number of Units			Weighted Average Price Per Unit
Performance Based Restricted Stock Units Under the OICP
Nonvested - December 31, 2020		148,073		$	64.82
Nonvested - December 31, 2021							165,822		$	64.08
Granted		52,976			70.92		48,416			93.43
Canceled		—			—		(1,375	)		65.02
Vested		(37,479	)		76.68		(71,461	)		60.35
Performance based adjustment		2,252			76.68		23,708			60.35
Nonvested - December 31, 2021		165,822		$	64.08
Nonvested - December 31, 2022							165,110		$	64.21

As of December 31, ~~2021,~~2022, there was ~~$3.3~~$3.7 million of unrecognized compensation cost related to the nonvested performance-based restricted stock units. The cost is expected to be recognized over a period of 1.7 years. The fair value of units vested during the ~~year~~years ended December 31, 2022 and 2021 was $7.4 million and $2.7 ~~million.~~million, respectively. There were 0no units vested during ~~2020 or 2019.~~2020.

The Company has strategically aligned its operations into the following 3three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking (collectively, the Business Segments, and each, a Business Segment). The Company’s senior executive officers regularly evaluate Business Segment financial results produced by the Company’s internal reporting system in deciding how to allocate resources and assess performance for individual Business Segments. Prior to 2020, the Company had the following 4 Business Segments: Commercial Banking, Institutional Banking, Personal Banking, and Healthcare Services. In the first quarter of 2020, the Company merged the Healthcare Services segment into the Institutional Banking segment to better reflect how the core businesses, products and services are currently being evaluated by management. The Company’s Healthcare Services leadership structure and financial performance assessments are now included in the Institutional Banking segment, and accordingly, the reportable segments were realigned to reflect these changes. The Company’s reportable Business Segments include certain corporate overhead, technology and service costs that are allocated based on methodologies that are applied consistently between periods. For comparability purposes, amounts in all periods are based on methodologies in effect at December 31, ~~2021.~~2022. Previously reported results have been reclassified in this filing to conform to the current organizational structure.

The following summaries provide information about the activities of each segment:

Commercial Banking serves the commercial banking and treasury management needs of the Company’s small to ~~mid-market~~middle-market businesses through a variety of products and services. Such services include commercial loans, commercial real estate financing, commercial credit cards, letters of credit, loan syndication services, and consultative services. In addition, the Company’s specialty lending group offers a variety of business solutions

including asset-based lending, ~~accounts receivable financing,~~ mezzanine debt and minority equity investments. Treasury management services include depository services, account reconciliation and cash management tools such as, accounts payable and receivable solutions, electronic fund transfer and automated payments, controlled disbursements, lockbox services, and remote deposit capture services.

Institutional Banking is a combination of banking services, fund services, asset management services, and healthcare services provided to institutional clients. This segment also provides fixed income sales, trading and underwriting, corporate trust and escrow services, as well as institutional custody. Institutional Banking includes UMBFS, which provides fund administration and accounting, investor services and transfer agency, ~~marketing~~ and ~~distribution, custody,~~other services to mutual fund and alternative investment ~~services.~~groups. Healthcare services provides healthcare payment solutions including custodial services for health savings accounts (HSAs) and private label, multipurpose debit cards to insurance carriers, third-party administrators, software companies, employers, and financial institutions.

Personal Banking combines consumer banking and wealth management services offered to clients and delivered through personal relationships and the Company’s bank branches, ATM network and internet banking. Products offered include deposit accounts, retail credit cards, private banking, installment loans, home equity lines of credit, and residential ~~mortgages, and small business loans.~~mortgages. The range of client services extends from a basic checking account to estate planning and trust services and includes private banking, brokerage services, and insurance services in addition to a full spectrum of investment advisory, trust, and custody services.

	Year Ended December 31, 2021								Year Ended December 31, 2022
	Commercial Banking		Institutional Banking		Personal Banking		Total		Commercial Banking		Institutional Banking		Personal Banking		Total
Net interest income	$	556,673	$	87,644	$	171,204	$	815,521	$	596,031	$	159,679	$	158,087	$	913,797
Provision for credit losses		15,553		630		3,817		20,000		32,851		495		4,554		37,900
Noninterest income		81,752		273,413		112,010		467,175		122,614		323,794		107,825		554,233
Noninterest expense		289,039		292,080		252,517		833,636		332,912		320,976		244,231		898,119
Income before taxes		333,833		68,347		26,880		429,060		352,882		162,002		17,127		532,011
Income tax expense		59,165		12,113		4,764		76,042		66,548		30,551		3,230		100,329
Net income	$	274,668	$	56,234	$	22,116	$	353,018	$	286,334	$	131,451	$	13,897	$	431,682
Average assets	$	15,243,000	$	12,255,000	$	7,831,000	$	35,329,000	$	17,489,000	$	13,100,000	$	6,990,000	$	37,579,000

	Year Ended December 31, 2020									Year Ended December 31, 2021
	Commercial Banking		Institutional Banking		Personal Banking			Total		Commercial Banking		Institutional Banking		Personal Banking		Total
Net interest income	$	475,425	$	106,856	$	148,948		$	731,229	$	579,992	$	87,644	$	147,885	$	815,521
Provision for credit losses		119,424		882		10,194			130,500		15,543		630		3,827		20,000
Noninterest income		189,412		254,874		115,880			560,166		84,417		273,483		109,275		467,175
Noninterest expense		272,283		286,635		263,087			822,005		306,424		292,142		235,070		833,636
Income (loss) before taxes		273,130		74,213		(8,453	)		338,890
Income tax expense (benefit)		42,223		11,472		(1,307	)		52,388
Net income (loss)	$	230,907	$	62,741	$	(7,146	)	$	286,502
Income before taxes											342,442		68,355		18,263		429,060
Income tax expense											60,691		12,113		3,238		76,042
Net income										$	281,751	$	56,242	$	15,025	$	353,018
Average assets	$	12,614,000	$	9,746,000	$	6,208,000		$	28,568,000	$	15,243,000	$	12,255,000	$	7,831,000	$	35,329,000

The following is a description of the principal activities from which the Company generates revenue that are within the scope of ASC 606, Revenue from Contracts with Customers:

Trust and securities processing – Trust and securities processing income consists of fees earned on personal and corporate trust accounts, custody of securities services, trust investments and wealth management services, and mutual fund and alternative asset servicing. The performance obligations related to this revenue include items such as performing full bond trustee service administration, investment advisory services, custody and record-keeping services, and fund administrative and accounting services. These fees are part of long-term contractual agreements and the performance obligations are satisfied upon completion of service and fees are generally a fixed flat monthly rate or based on a percentage of the account’s market value per the contract with the customer. These fees are primarily recorded within the Company’s Institutional and Personal Banking segments.

Trading and investment banking – Trading and investment banking income consists of income earned related to the Company’s trading securities portfolio, including futures hedging, dividends, bond underwriting, and other securities incomes. The vast majority of this revenue is recognized in accordance with ASC 320, Debt and Equity Securities, and is out of the scope of ASC 606. A portion of trading and investment banking represents fees earned for management fees, commissions, and underwriting of corporate bond issuances. The performance obligations related to these fees include reviewing the credit worthiness of the customer, ensuring appropriate regulatory approval and participating in due diligence. The fees are fixed per the bond prospectus and the performance obligations are satisfied upon registration approval of the bonds by the applicable regulatory agencies. Revenue is recognized at the point in time upon completion of service and when approval is granted by the regulators.

Service charges on deposits – Service charges on deposit accounts represent monthly analysis fees recognized for the services related to customer deposit accounts, including account maintenance and depository transactions processing fees. Commercial Banking and Institutional Banking depository accounts charge fees in accordance with the customer’s pricing schedule while Personal Banking account holders are generally charged a flat service fee per month. Deposit service charges for the healthcare accounts included in the Institutional Banking segment are priced according to either standard pricing schedules with individual account holders or according to service agreements between the Company and employer groups or third-party administrators. The Company satisfies the performance obligation related to providing depository accounts monthly as transactions are processed and deposit service charge revenue is recorded monthly. These fees are recognized within all Business Segments.

Insurance fees and commissions – Insurance fees and commissions includes all insurance-related fees earned, including commissions for individual life, variable life, group life, health, group health, fixed annuity, and variable annuity insurance contracts. The performance obligations related to these revenues primarily represent the placement of insurance policies with the insurance company partners. The fees are based on the contracts with insurance company partners and the performance obligations are satisfied when the terms of the policy have been agreed to and the insurance policy becomes effective.

Brokerage fees – Brokerage fees represent income earned related to providing brokerage transaction services, including commissions on equity and commodity trades, and fees for investment management, advisory and administration. The performance obligations related to transaction services are executing the specified trade and are priced according to the customer’s fee schedule. Such income is recognized at a point in time as the trade occurs

and the performance obligation is fulfilled. The performance obligations related to investment management, advisory and administration include allocating customer assets across a wide range of mutual funds and other investments, on-going account monitoring and re-balancing of the portfolio. These performance obligations are satisfied over time and the related revenue is calculated monthly based on the assets under management of each customer. All material performance obligations are satisfied as of the end of each accounting period.

Bankcard fees – Bankcard fees primarily represent income earned from interchange revenue from MasterCard and Visa for the Company’s processing of debit, credit, HSA, and flexible spending account transactions. Additionally, the Company earns income and incentives related to various referrals of customers to card programs. The performance obligation for interchange revenue is the processing of each transaction through the Company’s access to the banking system. This performance obligation is completed for each individual transaction and income is recognized per transaction in accordance with interchange rates established by MasterCard and Visa. The performance obligations for various referral and incentive programs include either referring customers to certain card products or issuing exclusively branded cards for certain customer segments. The pricing of these incentive

and referral programs are in accordance with the agreement with the individual card partner. These performance obligations are completed as the referrals are made or over a period of time when the Company is exclusively issuing branded cards. For the years ended December 31, 2022, 2021 ~~2020~~ and ~~2019,~~2020, the Company also has approximately ~~$34.0~~$34.5 million, ~~$30.0~~$34.0 million, and ~~$38.1~~$30.0 million of expense, respectively, recorded within the Bankcard fees line on the Company’s Consolidated Statements of Income related to rebates and rewards programs that are outside of the scope of ASC 606. All material performance obligations are satisfied as of the end of each accounting period.

Investment securities gains, net – In the regular course of business, the Company recognizes gains on the sale of available-for-sale securities. Additionally, the Company recognizes gains and losses on equity securities with readily determinable fair values and equity securities without readily determinable fair values. These gains and losses are recognized in accordance with ASC 320, Debt and Equity Securities, and are outside of the scope of ASC 606.

Other income – The Company recognizes other miscellaneous income through a variety of other revenue streams, the most material of which include letter of credit fees, certain loan origination fees, gains on the sale of assets, derivative income, and bank-owned and company-owned life insurance income. These revenue streams are outside of the scope of ASC 606 and are recognized in accordance with the applicable U.S. GAAP. The remainder of Other income is primarily earned through transactions with personal banking customers, including wire transfer service charges, stop payment charges, and fees for items like money orders and cashier’s checks. The performance obligations of these types of fees are satisfied as transactions are completed and revenue is recognized upon transaction execution according to established fee schedules with the customers.

The Company had no material contract assets, contract liabilities, or remaining performance obligations as of December 31, ~~2021~~2022 or ~~2020.~~2021. Total receivables from revenue recognized under the scope of ASC 606 were ~~$73.6~~$76.1 million and ~~$62.1~~$73.6 million as of December 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. These receivables are included as part of the Other assets line on the Company’s Consolidated Balance Sheets.

The following tables depict the disaggregation of revenue according to revenue stream and Business Segment for the three years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019.~~2020. As stated in Note 12, “Business Segment Reporting,” for comparability purposes, amounts in all periods are based on methodologies in effect at December 31, ~~2021~~2022 and previously reported results have been reclassified in this filing to conform to the current organizational structure.

	Year Ended December 31, 2021											Year Ended December 31, 2022
NONINTEREST INCOME	Commercial Banking		Institutional Banking		Personal Banking		Revenue (Expense) out of Scope of ASC 606			Total		Commercial Banking		Institutional Banking		Personal Banking		Revenue (Expense) out of Scope of ASC 606			Total
Trust and securities processing	$	—	$	164,480	$	59,646	$	—		$	224,126	$	—	$	183,724	$	53,483	$	—		$	237,207
Trading and investment banking		—		793		—		30,146			30,939		—		319		—		22,882			23,201
Service charges on deposit accounts		32,052		45,934		7,755		315			86,056		34,399		43,054		7,543		171			85,167
Insurance fees and commissions		—		—		1,309		—			1,309		—		—		1,338		—			1,338
Brokerage fees		107		4,069		7,995		—			12,171		230		35,141		7,648		—			43,019
Bankcard fees		56,246		19,117		22,451		(33,238	)		64,576		61,939		21,998		23,049		(33,535	)		73,451
Investment securities gains, net		—		—		—		5,057			5,057		—		—		—		58,444			58,444
Other		817		1,634		2,694		37,796			42,941		810		1,812		2,642		27,142			32,406
Total noninterest income	$	89,222	$	236,027	$	101,850	$	40,076		$	467,175	$	97,378	$	286,048	$	95,703	$	75,104		$	554,233

	Year Ended December 31, 2019											Year Ended December 31, 2020
NONINTEREST INCOME	Commercial Banking		Institutional Banking		Personal Banking		Revenue (Expense) out of Scope of ASC 606			Total		Commercial Banking		Institutional Banking		Personal Banking		Revenue (Expense) out of Scope of ASC 606			Total
Trust and securities processing	$	—	$	113,313	$	63,600	$	—		$	176,913	$	—	$	131,249	$	63,397	$	—		$	194,646
Trading and investment banking		—		741		—		22,725			23,466		—		755		—		32,190			32,945
Service charges on deposit accounts		29,716		41,923		10,964		145			82,748		30,470		46,611		6,587		211			83,879
Insurance fees and commissions		—		—		1,634		—			1,634		—		—		1,369		—			1,369
Brokerage fees		214		23,231		7,816		—			31,261		245		16,075		8,030		—			24,350
Bankcard fees		60,375		21,386		21,911		(36,945	)		66,727		52,257		17,731		19,621		(29,065	)		60,544
Investment securities gains, net		—		—		—		2,245			2,245		—		—		—		120,634			120,634
Other		1,196		1,469		3,190		35,921			41,776		1,135		1,469		2,603		36,592			41,799
Total noninterest income	$	91,501	$	202,063	$	109,115	$	24,091		$	426,770	$	84,107	$	213,890	$	101,607	$	160,562		$	560,166

The following table summarizes the share transactions for the three years ended December 31, ~~2021~~2022 (in thousands, except for share data):

	Shares Issued		Shares in Treasury			Shares Issued		Shares in Treasury
Balance January 1, 2019		55,056,730		(5,939,508	)
Purchase of Treasury Stock		—		(124,109	)
Sale of Treasury Stock		—		12,968
Issued for stock options and restricted stock		—		91,525
Balance December 31, 2019		55,056,730		(5,959,124	)
Balance January 1, 2020							55,056,730		(5,959,124	)
Accelerated Share Repurchase Program		—		(653,498	)		—		(653,498	)
Purchase of Treasury Stock		—		(563,830	)		—		(563,830	)
Sale of Treasury Stock		—		11,372			—		11,372
Issued for stock options and restricted stock		—		114,736			—		114,736
Balance December 31, 2020		55,056,730		(7,050,344	)		55,056,730		(7,050,344	)
Purchase of Treasury Stock		—		(67,671	)		—		(67,671	)
Sale of Treasury Stock		—		6,835			—		6,835
Issued for stock options and restricted stock		—		485,255			—		485,255
Balance December 31, 2021		55,056,730		(6,625,925	)		55,056,730		(6,625,925	)
Purchase of Treasury Stock							—		(341,785	)
Sale of Treasury Stock							—		6,487
Issued for stock options and restricted stock							—		223,897
Balance December 31, 2022							55,056,730		(6,737,326	)

The Board authorized the repurchase of up to 2 million shares of common stock annually at its ~~2019,~~ 2020, 2021 and ~~2021~~2022 meetings. During 2020, the Company entered into an agreement with BAML to repurchase an aggregate of ~~$30.0~~

$30.0 million of the Company’s common stock through an ~~ASR.~~accelerated share repurchase agreement (ASR). Under the ASR, the Company repurchased a total of 653,498 shares. The final settlement of the transactions under the ASR occurred in the second quarter of 2020. Other than purchases pursuant to the ASR, all share purchases pursuant to the Repurchase Authorizations are intended to be within the scope of Rule 10b-18 promulgated under the Exchange Act. Rule 10b-18 provides a safe harbor for purchases in a given day if the Company satisfies the manner, timing and volume conditions of the rule when purchasing its own common shares. The Company has not made any repurchase of its securities other than pursuant to the Repurchase Authorizations.

Basic earnings per share are computed by dividing income available to common shareholders by the weighted average number of shares outstanding during the year. Diluted earnings per share gives effect to all potential common shares that were outstanding during the year.

The shares used in the calculation of basic and diluted earnings per share, are shown below:

	For the Years Ended December 31,						For the Years Ended December 31,
	2021		2020		2019		2022		2021		2020
Weighted average basic common shares outstanding		48,271,462		48,137,791		48,779,263		48,340,922		48,271,462		48,137,791
Dilutive effect of stock options and restricted stock		466,830		205,959		310,614		406,477		466,830		205,959
Weighted average diluted common shares outstanding		48,738,292		48,343,750		49,089,877		48,747,399		48,738,292		48,343,750

In the normal course of business, the Company is a party to financial instruments with off-balance-sheet risk in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, commercial letters of credit, standby letters of credit, and futures contracts. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets. The contract or notional amount of those instruments reflects the extent of involvement the Company has in particular classes of financial instruments. Many of the commitments expire without being drawn upon; therefore, the total amount of these commitments does not necessarily represent the future cash requirements of the Company.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit, commercial letters of credit, and standby letters of credit is

represented by the contract or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the agreement. These conditions generally include, but are not limited to, each customer being current as to repayment terms of existing loans and no deterioration in the customer’s financial condition. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The interest rate is generally a variable rate. If the commitment has a fixed interest rate, the rate is generally not set until such time as credit is extended. For credit card customers, the Company has the right to change or terminate terms or conditions of the credit card account at any time. Since a large portion of the commitments and unused credit card lines are never actually drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on an individual basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral pledged by customers varies but may include accounts receivable, inventory, real estate, plant and equipment, stock, securities and certificates of deposit.

Commercial letters of credit are issued specifically to facilitate trade or commerce. Under the terms of a commercial letter of credit, as a general rule, drafts will be drawn when the underlying transaction is consummated as intended.

Standby letters of credit are conditional commitments issued by the Company payable upon the non-performance of a customer’s obligation to a third party. The Company issues standby letters of credit for terms ranging from three months to six years. The Company generally requires the customer to pledge collateral to support the letter of credit. The maximum liability to the Company under standby letters of credit at December 31,

2022 and 2021, ~~and 2020,~~ was ~~$365.0~~$437.0 million and ~~$346.6~~$365.0 million, respectively. As of December 31, ~~2021~~2022 and ~~2020,~~2021, standby letters of credit totaling ~~$28.6~~$25.5 million and ~~$3.8~~$28.6 million, respectively, were with related parties to the Company.

The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities. The Company holds collateral supporting those commitments when deemed necessary. Collateral varies but may include such items as those described for commitments to extend credit.

Futures contracts are contracts for delayed delivery of securities or money market instruments in which the seller agrees to make delivery at a specified future date, of a specified instrument, at a specified yield. Risks arise from the possible inability of counterparties to meet the terms of their contracts and from movement in securities values and interest rates. Instruments used in trading activities are carried at fair value and gains and losses on futures contracts are settled in cash daily. Any changes in the fair value are recognized in trading and investment banking income.

The Company uses contracts to offset interest rate risk on specific securities held in the trading portfolio. As of December 31, ~~2021~~2022 and ~~2020,~~2021, there were 0no notional amounts outstanding for these contracts. There were 0no open futures contract positions during the years ended December 31, ~~2021~~2022 or ~~2020.~~2021. There was 0no net futures activity for the years ended December 31, 2022, 2021, or 2020. ~~Net futures activity resulted in gains of $5 thousand for the year ended December 31, 2019.~~ The Company controls the credit risk of its futures contracts through credit approvals, limits and monitoring procedures.

The Company also enters into foreign exchange contracts on a limited basis. For operating purposes, the Company maintains certain balances in foreign banks. Foreign exchange contracts are purchased on a monthly basis to avoid foreign exchange risk on these foreign balances. The Company will also enter into foreign exchange contracts to facilitate foreign exchange needs of customers. The Company will enter into a contract to buy or sell a foreign currency at a future date only as part of a contract to sell or buy the foreign currency at the same future date to a customer. During ~~2021,~~2022, contracts to purchase and to sell foreign currency averaged approximately ~~$21.4~~$13.8 million compared to ~~$21.0~~$21.4 million during ~~2020.~~2021. The net gains on these foreign exchange contracts for 2022, 2021 and 2020 ~~and 2019~~ were $3.4 million, $2.6 million ~~$1.9 million~~ and ~~$1.8~~$1.9 million, respectively.

With respect to group concentrations of credit risk, most of the Company’s business activity is with customers in the states of Missouri, Kansas, Colorado, Oklahoma, Nebraska, Arizona, Illinois, and Texas. At December 31, ~~2021,~~2022, the Company did not have any significant credit concentrations in any particular industry.

The following table summarizes the Company’s off-balance sheet financial instruments as described above (in thousands):

	Contract or Notional Amount December 31,				Contract or Notional Amount December 31,
	2021		2020		2022		2021
Commitments to extend credit for loans (excluding credit card loans)	$	10,122,617	$	8,851,333	$	12,988,231	$	10,122,617
Commitments to extend credit under credit card loans		3,743,165		3,472,339		4,008,386		3,743,165
Commercial letters of credit		2,754		3,160		3,334		2,754
Standby letters of credit		365,030		346,617		436,965		365,030
Forward contracts		9,729		51,273		32,552		9,729
Spot foreign exchange contracts		2,946		680		5,112		2,946

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The estimate is based on expected utilization rates by portfolio segment. Utilization rates are influenced by historical trends and current conditions. The expected utilization rates are applied to the total commitment to determine the expected amount to be funded. The allowance for off-balance sheet credit exposure is calculated by applying portfolio segment expected credit loss rates to the expected amount to be funded.

The following categories of off-balance sheet credit exposures have been identified:

Revolving Lines of Credit: includes commercial, construction, agricultural, personal, and home-equity. Risk inherent to revolving lines of credit often are related to the susceptibility of an individual or business experiencing unpredictable cash flow or financial troubles, thus leading to payment default. During these financial troubles, the borrower could have less than desirable assets collateralizing the revolving line of credit. The financial strain the borrower is experiencing could lead to drawing against the line without the ability to pay the line down.

Non-Revolving Lines of Credit: include commercial and personal. Lines that do not carry a revolving feature are generally associated with a specific expenditure or project, such as to purchase equipment or the construction of real estate. The predominate risk associated with non-revolving lines is the diversion of funds for other expenditures. If the funds get diverted, the contributory value to collateral suffers.

Letters of Credit: includes standby letters of credit. Generally, a standby letter of credit is established to provide assurance to the beneficiary that the applicant will perform certain obligations arising out of a separate transaction between the beneficiary and the applicant. These obligations might be the performance of a service or delivery of a product. If the obligations are not met, it gives the beneficiary the right to draw on the letter of credit.

The ACL for off-balance sheet credit exposures was ~~$2.6~~$3.1 million and ~~$5.6~~$2.6 million as of December 31, ~~2021~~2022 and ~~2020,~~2021, respectively, and was recorded in the Accrued expenses and taxes line of the Company’s Consolidated Balance Sheets. Provision of $500 thousand was recorded for off-balance sheet credit exposures for the year ended December 31, 2022. A reduction of $3.0 million of provision for off-balance sheet credit exposures was recorded for the year ended December 31, 2021. ~~Provision for off-balance sheet credit exposures of $2.6 million was recorded for the year ended December 31, 2020.~~ Provision for off-balance sheet credit exposures is recorded in the Provision for credit losses line of the Company’s Consolidated Statements of Income.

Income taxes as set forth below produce effective income tax rates of 18.9% in 2022, 17.7% in 2021, and 15.5% in ~~2020, and 14.8% in 2019.~~2020. These percentages are computed by dividing Income tax expense by Income before income taxes.

	Year Ended December 31,									Year Ended December 31,
	2021			2020			2019			2022			2021			2020
Current tax
Federal	$	72,410		$	49,053		$	37,134		$	92,673		$	72,410		$	49,053
State		16,356			8,171			5,384			13,964			16,356			8,171
Total current tax expense		88,766			57,224			42,518			106,637			88,766			57,224
Deferred tax
Federal		(9,872	)		(4,045	)		(177	)		(3,998	)		(9,872	)		(4,045	)
State		(2,852	)		(791	)		24			(2,310	)		(2,852	)		(791	)
Total deferred tax benefit		(12,724	)		(4,836	)		(153	)		(6,308	)		(12,724	)		(4,836	)
Total tax expense	$	76,042		$	52,388		$	42,365		$	100,329		$	76,042		$	52,388

The reconciliation between the income tax expense and the amount computed by applying the statutory federal tax rate of 21% for income before income taxes is as follows (in thousands):

	Year Ended December 31,									Year Ended December 31,
	2021			2020			2019			2022			2021			2020
Statutory federal income tax expense	$	90,103		$	71,167		$	60,053		$	111,722		$	90,103		$	71,167
Tax-exempt interest income		(20,635	)		(20,914	)		(18,725	)		(20,206	)		(20,635	)		(20,914	)
Tax-exempt life insurance related income		(2,631	)		(3,420	)		(4,007	)		(723	)		(2,631	)		(3,420	)
Meals, entertainment and related expenses		580			924			1,647			854			580			924
State and local income taxes, net of federal tax benefits		10,659			5,835			4,273			9,207			10,659			5,835
Equity-based compensation		(1,889	)		(299	)		(597	)		(1,921	)		(1,889	)		(299	)
Federal tax credits, net of amortization of LIHTC investments		(2,634	)		(1,772	)		(980	)		(3,748	)		(2,634	)		(1,772	)
Other		2,489			867			701			5,144			2,489			867
Total tax expense	$	76,042		$	52,388		$	42,365		$	100,329		$	76,042		$	52,388

In preparing its tax returns, the Company is required to interpret tax laws and regulations to determine its taxable income. Periodically, the Company is subject to examinations by various taxing authorities that may give rise to differing interpretations of these laws. Upon examination, agreement of tax liabilities between the Company and the multiple tax jurisdictions in which the Company files tax returns may ultimately be different. During 2022, the Internal Revenue Service closed the examination of tax years 2014 and 2015 with no changes to the tax returns as filed. The Company is in the examination process with ~~the Internal Revenue Service~~two state tax authorities for tax years ~~2014~~2018, 2019, and ~~2015 and with one state taxing authority for tax year 2018.~~2020. The Company believes the aggregate amount of any additional liabilities that may result from these examinations, if any, will not have a material adverse effect on the financial condition, results of operations, or cash flows of the Company.

Deferred income taxes result from differences between the carrying value of assets and liabilities measured for financial reporting and the tax basis of assets and liabilities for income tax return purposes.

The significant components of deferred tax assets and liabilities are reflected in the following table (in thousands):

	December 31,						December 31,
	2021			2020			2022			2021
Deferred tax assets:
Net unrealized loss on securities available for sale							$	248,001		$	—
Loans, principally due to allowance for credit losses	$	45,029		$	52,583			43,129			45,029
Equity-based compensation		6,493			6,293			7,743			6,493
Accrued expenses		23,032			19,878			25,007			23,032
Deferred compensation		16,320			14,830			15,375			16,320
Miscellaneous		5,515			6,471			2,289			5,515
Total deferred tax assets before valuation allowance		96,389			100,055			341,544			96,389
Valuation allowance		(1,335	)		(3,278	)		(180	)		(1,335	)
Total deferred tax assets		95,054			96,777			341,364			95,054
Deferred tax liabilities:
Net unrealized gain on securities available for sale		(35,447	)		(97,434	)		—			(35,447	)
Net unrealized gain on fair value hedges								(18,617	)		(1,336	)
Securities		(788	)		(13,462	)		(87	)		(788	)
Land, buildings and equipment		(37,370	)		(41,339	)		(33,036	)		(37,370	)
Original issue discount		(1,486	)		(1,969	)		(992	)		(1,486	)
Prepaid expenses								(5,862	)		(4,359	)
Partnership investments		(5,627	)		(6,948	)		(6,737	)		(5,627	)
Trust preferred securities		(7,250	)		(7,538	)		(6,912	)		(7,250	)
Intangibles		(20,067	)		(15,215	)		(17,225	)		(20,067	)
Miscellaneous		(9,121	)		(8,430	)		(3,471	)		(3,426	)
Total deferred tax liabilities		(117,156	)		(192,335	)		(92,939	)		(117,156	)
Net deferred tax liability	$	(22,102	)	$	(95,558	)
Net deferred tax asset (liability)							$	248,425		$	(22,102	)

As of December 31, ~~2021,~~2022, state net operating loss carryforwards of approximately ~~$649~~$544 thousand are included in the miscellaneous deferred tax assets line item above. These deferred tax assets include approximately $16.5 million related to net operating losses that can be used to offset taxable income in future periods and reduce our income taxes payable in those future periods. Most of these net operating losses expire at various times between ~~2022~~2023 and 2041 and some have an indefinite carryforward. During the year ended December 31, ~~2021,~~2022, the Company released a portion of the state valuation allowance of ~~$1.7~~$1.2 million, due to positive evidence outweighing negative evidence, specifically no longer being in a cumulative loss position in certain jurisdictions. As of December 31, ~~2021~~2022 and ~~2020,~~2021, the Company had a valuation allowance of ~~$514~~$13 thousand and ~~$1.1 million,~~$514 thousand, respectively, for certain state net operating losses as they are not expected to be realized. In addition, as of December 31, ~~20201~~2022 and ~~2020,~~2021, the Company had a valuation allowance of ~~$821~~$167 thousand and ~~$2.2 million,~~$821 thousand, respectively, to reduce certain other state deferred tax assets to the amount of tax benefit management believes it will be more likely than not ~~realize.~~realized.

The net deferred tax asset at December 31, 2022 is included in the Other assets line of the Company’s Consolidated Balance Sheets while the net deferred tax liability at December 31, 2021 is included in the Accrued expenses and taxes line of the Company’s Consolidated Balance Sheets.

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for tax years prior to ~~2014~~2017 in the jurisdictions in which it files.

The gross amount of unrecognized tax benefits totaled ~~$8.8~~$9.4 million and ~~$6.7~~$8.8 million at December 31, ~~2021~~2022 and ~~2020,~~2021, respectively. The total amount of unrecognized tax benefits, net of associated deferred tax benefit, that would impact the effective tax rate, if recognized, would be ~~$7.0~~$7.4 million and ~~$5.3~~$7.0 million at December 31, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively. The unrecognized tax benefits relate to state tax positions that have a corresponding federal tax benefit. While it is expected that the amount of unrecognized tax benefits will change in the next twelve months, the Company does not expect this change to have a material impact on the financial condition, results of operations, or cash flows of the Company.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	December 31,						December 31,
	2021			2020			2022			2021
Unrecognized tax benefits - opening balance	$	6,717		$	5,802		$	8,798		$	6,717
Gross increases - tax positions in prior period		291			—			—			291
Gross decreases - tax positions in prior period		—			(96	)		(63	)		—
Gross increases - current-period tax positions		2,201			1,656			2,621			2,201
Lapse of statute of limitations		(411	)		(645	)		(1,996	)		(411	)
Unrecognized tax benefits - ending balance	$	8,798		$	6,717		$	9,360		$	8,798

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s loans and borrowings. The Company also has interest rate derivatives that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk of the Company’s assets or liabilities. The Company has entered into an offsetting position for each of these

derivative instruments with a matching instrument from another financial institution in order to minimize its net risk exposure resulting from such transactions.

The table below presents the fair value of the Company’s derivative financial instruments as of December 31, ~~2021~~2022 and ~~2020.~~2021. The Company’s derivative assets and derivative liabilities are located within Other assets and Other liabilities, respectively, on the Company’s Consolidated Balance Sheets.

Derivative fair values are determined using valuation techniques including discounted cash flow analysis on the expected cash flows from each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

This table provides a summary of the fair value of the Company’s derivative assets and liabilities as of December 31, ~~2021~~2022 and December 31, ~~2020~~2021 (in thousands):

The Company is exposed to changes in the fair value of certain of its fixed-rate assets and liabilities due to changes in the benchmark interest rate, LIBOR. Interest rate swaps designated as fair value hedges involve making fixed rate payments to a counterparty in exchange for the Company receiving variable rate payments over the life of the agreements without the exchange of the underlying notional amount. As of December 31, 2022, the Company had three interest rate swaps that were designated as fair value hedges of interest rate risk associated with the Company’s municipal bond securities. These swaps had a notional amount of $254.6 million as of December 31, 2022. As of December 31, 2021, the Company had 10 interest rate swaps that were designated as fair value hedges of interest rate risk associated with the Company’s municipal bond securities. These swaps had a notional amount of $1.0 billion as of December 31, 2021. ~~As of~~During the year ended December 31, ~~2020,~~2022, the Company ~~had 1 interest rate swap that was designated as a~~terminated seven fair value ~~hedge~~hedges. In connection with these terminated hedges, $58.1 million of ~~interest rate risk associated with~~hedging adjustments will be amortized through the ~~Company’s fixed rate loan assets. This swap had a notional amount~~contractual maturity date of ~~$5.0 million as of December 31, 2020.~~each respective hedged item.

For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in Interest income in the Consolidated Statements of Income.

The Company’s objective in using interest rate derivatives is to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of December 31, ~~2021~~2022 and ~~2020,~~2021, the Company had 2two interest rate swaps that were designated as cash flow hedges of interest rate risk associated with the Company’s variable-rate subordinated debentures issued by Marquette Capital Trusts III and IV. These swaps had an aggregate notional amount of $51.5 million at both December 31, ~~2021~~2022 and ~~2020.~~2021. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the

strike rate on the contract in exchange for an upfront premium. On August 28, 2020, the Company terminated an interest rate floor with a notional amount of $750.0 million. At the date of termination, the interest rate floor had a net asset fair value of $34.1 million. The gross unrealized gain on the terminated interest rate floor remaining in AOCI was $7.4 million, or $5.6 million net of tax, and $12.3 million, or $9.4 million net of tax, ~~and $17.0 million, or $12.9 million net of tax,~~ as of December 31, ~~2021~~2022 and ~~2020,~~2021, respectively. The unrealized gain will be reclassified into Interest income as the underlying forecasted transactions impact earnings through the original maturity of the hedged forecasted transactions. The total remaining term over which the unrealized gain will be reclassified into earnings is ~~2.7 years.~~1.7 years.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and is subsequently reclassified into interest expense and interest income in the period during which the hedged forecasted transaction affects earnings. Amounts reported in AOCI related to interest rate swap derivatives will be reclassified to Interest expense as interest payments are received or paid on the Company’s hedged items. Amounts reported in AOCI related to interest rate floor derivatives will be reclassified to Interest income as interest payments are received or paid on the Company’s hedged items. The Company expects to reclassify $1.2 million from AOCI as a reduction to Interest expense and ~~$5.0~~$4.7 million from AOCI to Interest income during the next 12 months. As of December 31, ~~2021,~~2022, the Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of ~~14.7~~13.7 years.

The remainder of the Company’s derivatives are not designated in qualifying hedging relationships. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously offset by interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of December 31, 2022, the Company had 230 interest rate swaps with an aggregate notional amount of $3.5 billion related to this program. As of December 31, 2021, the Company had 188 interest rate swaps with an aggregate notional amount of $2.9 ~~billion related to this program. As of December 31, 2020, the Company had 176 interest rate swaps with an aggregate notional amount of $2.5~~ billion.

Effect of Derivative Instruments on the Consolidated Statements of Income and Accumulated Other Comprehensive Income

This table provides a summary of the amount of gain or loss recognized in Other noninterest expense in the Consolidated Statements of Income for the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019~~2020 related to the Company’s derivative assets and liabilities (in thousands):

	Amount of Gain (Loss) Recognized									Amount of Gain (Loss) Recognized
	For the Year Ended December 31,									For the Year Ended December 31,
	2021			2020			2019			2022			2021			2020
Interest Rate Products
Derivatives not designated as hedging instruments	$	387		$	(720	)	$	464		$	423		$	387		$	(720	)
Total	$	387		$	(720	)	$	464		$	423		$	387		$	(720	)
Interest Rate Products
Derivatives designated as hedging instruments:
Fair value adjustments on derivatives	$	5,231		$	(139	)	$	(150	)	$	72,539		$	5,231		$	(139	)
Fair value adjustments on hedged items		(5,832	)		139			150			(72,047	)		(5,832	)		139
Total	$	(601	)	$	—		$	—		$	492		$	(601	)	$	—

This table provides a summary of the effect of hedges on AOCI in the Consolidated Statements of Comprehensive Income for the years ended December 31, 2022, 2021, ~~2020,~~ and ~~2019~~2020 related to the Company’s derivative assets and liabilities (in thousands):

The Company has agreements with certain of its derivative counterparties that contain a provision that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations.

~~As of December 31, 2021, the termination value of derivatives in a net liability position, which includes accrued interest, related to these agreements was $7.9 million.~~ The Company has minimum collateral posting thresholds with certain of its derivative counterparties. As of December 31, ~~2021,~~2022, the Company had not posted ~~$12.7 million of collateral.~~any collateral as there were no derivatives in a net liability position. If the Company had breached any of these provisions at December 31, ~~2021,~~2022, it could have been required to settle its obligations under the agreements at the termination value.

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, ~~2021~~2022 and ~~2020~~2021 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.

Fair values determined by Level 1 inputs utilize quoted prices in active markets for identical assets and liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the hierarchy. In such cases, the fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Assets and liabilities measured at fair value on a recurring basis as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

	Fair Value Measurement at December 31, 2021 Using								Fair Value Measurement at December 31, 2022 Using
Description	December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
U.S. Treasury	$	1,625	$	1,625	$	—	$	—	$	580	$	580	$	—	$	—
U.S. Agencies		2,159		—		2,159		—		7,558		—		7,558		—
Mortgage-backed		2,060		—		2,060		—		—		—		—		—
State and political subdivisions		21,671		—		21,671		—		8,038		—		8,038		—
Corporates		4,000		4,000		—		—		1,024		1,024		—		—
Trading – other		360		360		—		—		780		780		—		—
Trading securities		31,875		5,985		25,890		—		17,980		2,384		15,596		—
U.S. Treasury		69,174		69,174		—		—		777,070		777,070		—		—
U.S. Agencies		124,932		—		124,932		—		171,296		—		171,296		—
Mortgage-backed		7,965,055		—		7,965,055		—		3,982,122		—		3,982,122		—
State and political subdivisions		3,422,688		—		3,422,688		—		1,362,407		—		1,362,407		—
Corporates		317,846		317,846		—		—		367,500		367,500		—		—
Collateralized loan obligations		76,819		—		76,819		—		345,952		—		345,952		—
Securities available for sale		11,976,514		387,020		11,589,494		—		7,006,347		1,144,570		5,861,777		—
Equity securities with readily determinable fair values		64,149		64,149		—		—		10,782		10,782		—		—
Company-owned life insurance		65,245		—		65,245		—		56,769		—		56,769		—
Bank-owned life insurance		498,373		—		498,373		—		510,293		—		510,293		—
Derivatives		57,680		—		57,680		—		48,121		—		48,121		—
Total	$	12,693,836	$	457,154	$	12,236,682	$	—	$	7,650,292	$	1,157,736	$	6,492,556	$	—
Liabilities
Derivatives	$	13,944	$	—	$	13,944	$	—	$	126,334	$	—	$	126,334	$	—
Securities sold not yet purchased		3,197		—		3,197		—		3,503		—		3,503		—
Total	$	17,141	$	—	$	17,141	$	—	$	129,837	$	—	$	129,837	$	—

	Fair Value Measurement at December 31, 2020 Using								Fair Value Measurement at December 31, 2021 Using
Description	December 31, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
U.S. Treasury	$	651	$	651	$	—	$	—	$	1,625	$	1,625	$	—	$	—
U.S. Agencies		1,568		—		1,568		—		2,159		—		2,159		—
Mortgage-backed		4		—		4		—		2,060		—		2,060		—
State and political subdivisions		18,545		—		18,545		—		21,671		—		21,671		—
Corporates		711		711		—		—		4,000		4,000		—		—
Trading – other		13,541		13,541		—		—		360		360		—		—
Trading securities		35,020		14,903		20,117		—		31,875		5,985		25,890		—
U.S. Treasury		30,740		30,740		—		—		69,174		69,174		—		—
U.S. Agencies		95,949		—		95,949		—		124,932		—		124,932		—
Mortgage-backed		5,468,181		—		5,468,181		—		7,965,055		—		7,965,055		—
State and political subdivisions		3,623,619		—		3,623,619		—		3,422,688		—		3,422,688		—
Corporates		81,199		81,199		—		—		317,846		317,846		—		—
Collateralized loan obligations										76,819		—		76,819		—
Securities available for sale		9,299,688		111,939		9,187,749		—		11,976,514		387,020		11,589,494		—
Equity securities with readily determinable fair values		134,197		134,197		—		—		64,149		64,149		—		—
Company-owned life insurance		63,575		—		63,575		—		65,245		—		65,245		—
Bank-owned life insurance		387,513		—		387,513		—		498,373		—		498,373		—
Derivatives		103,554		—		103,554		—		57,680		—		57,680		—
Total	$	10,023,547	$	261,039	$	9,762,508	$	—	$	12,693,836	$	457,154	$	12,236,682	$	—
Liabilities
Derivatives	$	9,375	$	—	$	9,375	$	—	$	13,944	$	—	$	13,944	$	—
Securities sold not yet purchased		2,177		—		2,177		—		3,197		—		3,197		—
Total	$	11,552	$	—	$	11,552	$	—	$	17,141	$	—	$	17,141	$	—

The following methods and assumptions were used to estimate the fair value of each class of financial instruments measured on a recurring basis:

Trading Securities Fair values for trading securities (including financial futures), are based on quoted market prices where available. If quoted market prices are not available, fair values are based on quoted market prices for similar securities.

Securities Available for Sale Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Prices are provided by third-party pricing services and are based on observable market inputs. On an annual basis, the Company compares a sample of these prices to other independent sources for the same securities. Additionally, throughout the year, if securities are sold, comparisons are made between the pricing services prices and the market prices at which the securities were sold. Variances are analyzed, and, if appropriate, additional research is conducted with the third-party pricing services. Based on this research, the pricing services may affirm or revise their quoted price. No significant adjustments have been made to the prices provided by the pricing services. The pricing services also provide documentation on an ongoing basis that includes reference data, inputs and methodology by asset class, which is reviewed to ensure that security placement within the fair value hierarchy is appropriate.

Equity securities with readily determinable fair values Fair values are based on quoted market prices.

Company-owned Life Insurance Fair value is equal to the cash surrender value of the life insurance policies.

Bank-owned Life Insurance Fair value is equal to the cash surrender value of the life insurance policies.

Derivatives Fair values are determined using valuation techniques including discounted cash flow analysis on the expected cash flows from each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Securities sold not yet purchased Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Prices are provided by third-party pricing services and are based on observable market inputs.

Assets measured at fair value on a non-recurring basis as of December 31, ~~2021~~2022 and ~~2020~~2021 (in thousands):

			Fair Value Measurement at December 31, 2021 Using										Fair Value Measurement at December 31, 2022 Using
Description	December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains Recognized During the Twelve Months Ended December 31		December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Losses Recognized During the Twelve Months Ended December 31
Collateral dependent assets	$	46,979	$	—	$	—	$	46,979	$	1,521	$	4,373	$	—	$	—	$	4,373	$	(2,998	)
Other real estate owned		—		—		—		—		—		68		—		—		68		—
Total	$	46,979	$	—	$	—	$	46,979	$	1,521	$	4,441	$	—	$	—	$	4,441	$	(2,998	)

			Fair Value Measurement at December 31, 2020 Using											Fair Value Measurement at December 31, 2021 Using
Description	December 31, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Losses Recognized During the Twelve Months Ended December 31			December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains Recognized During the Twelve Months Ended December 31
Collateral dependent assets	$	35,995	$	—	$	—	$	35,995	$	(9,389	)	$	46,979	$	—	$	—	$	46,979	$	1,521
Other real estate owned		2,798		—		—		2,798		(938	)		—		—		—		—		—
Total	$	38,793	$	—	$	—	$	38,793	$	(10,327	)	$	46,979	$	—	$	—	$	46,979	$	1,521

Valuation methods for instruments measured at fair value on a non-recurring basis

The following methods and assumptions were used to estimate the fair value of each class of financial instruments measured on a non-recurring basis:

Collateral Dependent Assets Collateral dependent assets are assets evaluated as part of the ACL on an individual basis. Those assets for which there is an associated allowance are considered financial assets measured at fair value on a non-recurring basis. Adjustments are recorded on certain assets to reflect write-downs that are based on the external appraised value of the underlying collateral. The external appraisals are generally based on recent sales of comparable properties which are then adjusted for the unique characteristics of the property being valued. In the case of non-real estate collateral, reliance is placed on a variety of sources, including external estimates of value and judgments based on the experience and expertise of internal specialists within the Company’s property management group and the Company’s credit department. The valuation of collateral dependent assets and impaired loans are reviewed on a quarterly basis. Because many of these inputs are not observable, the measurements are classified as Level 3.

Other real estate owned Other real estate owned consists of loan collateral which has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and other non-real estate property, including auto, recreational and marine vehicles. Other real estate owned is recorded as held for sale initially at the fair value of the collateral less estimated selling costs. The initial valuation of the foreclosed property

is obtained through an appraisal process similar to the process described in the collateral dependent/impaired loans paragraph above. Subsequent to foreclosure, valuations are reviewed quarterly and updated periodically, and the assets may be marked down further, reflecting a new cost basis. Fair value measurements may be based upon appraisals, third-party price opinions, or internally developed pricing methods and those measurements are classified as Level 3.

Fair value disclosures require disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis.

The estimated fair value of the Company’s financial instruments at December 31, ~~2021~~2022 and ~~2020~~2021 are as follows (in thousands):

	Fair Value Measurement at December 31, 2021 Using										Fair Value Measurement at December 31, 2022 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Estimated Fair Value		Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Estimated Fair Value
FINANCIAL ASSETS
Cash and short-term investments	$	10,472,084	$	9,255,727	$	1,216,357	$	—	$	10,472,084	$	2,638,384	$	1,686,787	$	951,597	$	—	$	2,638,384
Securities available for sale		11,976,514		387,020		11,589,494		—		11,976,514		7,006,347		1,144,570		5,861,777		—		7,006,347
Securities held to maturity (exclusive of allowance for credit losses)		1,480,416		—		1,442,391		—		1,442,391		5,861,599		—		5,280,659		—		5,280,659
Trading securities		31,875		5,985		25,890		—		31,875		17,980		2,384		15,596		—		17,980
Other securities		327,098		64,149		262,949		—		327,098		349,758		10,782		338,976		—		349,758
Loans (exclusive of allowance for credit losses)		17,172,148		—		17,506,662		—		17,506,662		21,033,167		—		20,816,899		—		20,816,899
Derivatives		57,680		—		57,680		—		57,680		48,121		—		48,121		—		48,121
FINANCIAL LIABILITIES
Demand and savings deposits		34,748,286		34,748,286		—		—		34,748,286		31,721,995		31,721,995		—		—		31,721,995
Time deposits		851,641		—		851,641		—		851,641		917,138		—		917,138		—		917,138
Other borrowings		3,238,435		12,597		3,225,838		—		3,238,435		2,222,167		62,480		2,159,687		—		2,222,167
Long-term debt		271,544		—		285,961		—		285,961		381,311		—		418,737		—		418,737
Derivatives		13,944		—		13,944		—		13,944		126,334		—		126,334		—		126,334
OFF-BALANCE SHEET ARRANGEMENTS
Commitments to extend credit for loans										7,841										9,260
Commercial letters of credit										179										185
Standby letters of credit										3,553										3,982

	Fair Value Measurement at December 31, 2020 Using										Fair Value Measurement at December 31, 2021 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Estimated Fair Value		Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Estimated Fair Value
FINANCIAL ASSETS
Cash and short-term investments	$	5,191,015	$	3,540,680	$	1,650,335	$	—	$	5,191,015	$	10,472,084	$	9,255,727	$	1,216,357	$	—	$	10,472,084
Securities available for sale		9,299,688		111,939		9,187,749		—		9,299,688		11,976,514		387,020		11,589,494		—		11,976,514
Securities held to maturity (exclusive of allowance for credit losses)		1,014,614		—		1,029,444		—		1,029,444		1,480,416		—		1,442,391		—		1,442,391
Trading securities		35,020		14,903		20,117		—		35,020		31,875		5,985		25,890		—		31,875
Other securities		296,053		134,197		161,856		—		296,053		327,098		64,149		262,949		—		327,098
Loans (exclusive of allowance for credit losses)		16,110,359		—		16,413,132		—		16,413,132		17,172,148		—		17,506,662		—		17,506,662
Derivatives		103,554		—		103,554		—		103,554		57,680		—		57,680		—		57,680
FINANCIAL LIABILITIES
Demand and savings deposits		26,175,156		26,175,156		—		—		26,175,156		34,748,286		34,748,286		—		—		34,748,286
Time deposits		876,095		—		879,841		—		879,841		851,641		—		851,641		—		851,641
Other borrowings		2,315,497		65,636		2,249,861		—		2,315,497		3,238,435		12,597		3,225,838		—		3,238,435
Long-term debt		269,595		—		299,858		—		299,858		271,544		—		285,961		—		285,961
Derivatives		9,375		—		9,375		—		9,375		13,944		—		13,944		—		13,944
OFF-BALANCE SHEET ARRANGEMENTS
Commitments to extend credit for loans										6,405										7,841
Commercial letters of credit										150										179
Standby letters of credit										3,365										3,553

Cash and short-term investments The carrying amounts of cash and due from banks, federal funds sold and resell agreements are reasonable estimates of their fair values.

Securities held to maturity ~~Fair~~For U.S. Agency and mortgage-backed securities, as well as general obligation bonds in the State and political subdivision portfolio, fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Prices are provided by third-party pricing services and are based on observable market inputs. On an annual basis, the Company compares a sample of ~~held-to-maturity securities~~these prices to other independent sources for the same securities. Variances are analyzed, and, if appropriate, additional research is conducted with the third-party pricing services. Based on this research, the pricing services may affirm or revise their quoted price. No significant adjustments have been made to the prices provided by the pricing services. The pricing services also provide documentation on an ongoing basis that includes reference data, inputs and methodology by asset class, which is reviewed to ensure that security placement within the fair value hierarchy is appropriate. For private placement bonds in the State and political subdivision portfolio, fair values are estimated by discounting the future cash flows using current market rates.

Other securities Amount consists of FRB and FHLB stock held by the Company, equity securities with readily determinable fair values, and equity securities without readily determinable fair values, including equity-method investments and other miscellaneous investments. The carrying amount of the FRB and FHLB stock equals its fair value because the shares can only be redeemed by the FRB and FHLB at their carrying amount. Equity securities with readily determinable fair values are measured at fair value using quoted market prices. Equity securities without readily determinable fair values are carried at cost, which approximates fair value. As of December 31, 2020, equity securities without readily determinable fair values also included PCM equity-method investments, for which the Company’s proportionate share of the income or loss was recognized on a one-quarter lag based on the valuation of the underlying investment(s).

Loans Fair values are estimated for portfolios with similar financial characteristics. Loans are segregated by type, such as commercial, real estate, consumer, and credit card. Each loan category is further segmented into fixed and variable interest rate categories. The fair value of loans is estimated by discounting the future cash flows. The discount rates used are estimated using comparable market rates for similar types of instruments adjusted to be commensurate with the credit risk, overhead costs, and optionality of such instruments.

Demand and savings deposits The fair value of demand deposits and savings accounts was the amount payable on demand at December 31, ~~2021~~2022 and ~~2020.~~2021.

Time deposits The fair value of fixed-maturity certificates of deposit is estimated by discounting the future cash flows using the rates that are currently offered for deposits of similar remaining maturities.

Other borrowings The carrying amounts of federal funds purchased, repurchase agreements and other short-term debt are reasonable estimates of their fair value because of the short-term nature of their maturities.Federal funds purchased are classified as Level 1 based on availability of quoted market prices and repurchase agreements and other short-term debt are classified as Level 2.

Long-term debt Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate fair value of existing debt.

Other off-balance sheet instruments The fair value of loan commitments and letters of credit are determined based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreement and the present creditworthiness of the counterparties. Neither the fees earned during the year on these instruments nor their fair value at period-end are significant to the Company’s consolidated financial position.

	December 31,				December 31,
	2021		2020		2022		2021
ASSETS
Investment in subsidiaries:
Banks	$	2,970,227	$	2,902,559	$	2,685,783	$	2,970,227
Non-banks		169,123		138,450		178,973		169,123
Total investment in subsidiaries		3,139,350		3,041,009		2,864,756		3,139,350
Goodwill on purchased affiliates		5,011		5,011		5,011		5,011
Cash		185,372		172,745		139,058		185,372
Investment securities and other		155,196		135,609		106,294		155,196
Total assets	$	3,484,929	$	3,354,374	$	3,115,119	$	3,484,929
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term debt	$	271,544	$	269,595	$	381,311	$	271,544
Accrued expenses and other		67,961		67,831		66,715		67,961
Total liabilities		339,505		337,426		448,026		339,505
Shareholders' equity		3,145,424		3,016,948		2,667,093		3,145,424
Total liabilities and shareholders' equity	$	3,484,929	$	3,354,374	$	3,115,119	$	3,484,929

	Year Ended December 31,									Year Ended December 31,
	2021			2020			2019			2022			2021			2020
INCOME
Dividends and income received from subsidiaries	$	129,217		$	78,360		$	56,500		$	57,000		$	129,217		$	78,360
Service fees from subsidiaries		60,346			49,191			52,416			74,472			60,346			49,191
Other		12,771			9,241			11,249			55,988			12,771			9,241
Total income		202,334			136,792			120,165			187,460			202,334			136,792
EXPENSE
Salaries and employee benefits		62,109			56,919			57,487			60,094			62,109			56,919
Other		31,022			22,657			21,124			35,943			31,022			22,657
Total expense		93,131			79,576			78,611			96,037			93,131			79,576
Income before income taxes and equity in undistributed earnings of subsidiaries		109,203			57,216			41,554			91,423			109,203			57,216
Income tax (benefit) expense		(10,322	)		(6,230	)		12,201
Income tax expense (benefit)											10,958			(10,322	)		(6,230	)
Income before equity in undistributed earnings of subsidiaries		119,525			63,446			29,353			80,465			119,525			63,446
Equity in undistributed earnings of subsidiaries:
Banks		263,084			234,014			221,215			344,567			263,084			234,014
Non-Banks		(29,591	)		(10,958	)		(6,968	)		6,650			(29,591	)		(10,958	)
Net income	$	353,018		$	286,502		$	243,600		$	431,682		$	353,018		$	286,502
Other comprehensive (loss) income		(192,026	)		235,160			178,962			(829,049	)		(192,026	)		235,160
Comprehensive income	$	160,992		$	521,662		$	422,562
Comprehensive (loss) income										$	(397,367	)	$	160,992		$	521,662

	Year Ended December 31,									Year Ended December 31,
	2021			2020			2019			2022			2021			2020
OPERATING ACTIVITIES
Net income	$	353,018		$	286,502		$	243,600		$	431,682		$	353,018		$	286,502
Adjustments to reconcile net income to cash provided by operating activities:
Equity in earnings of subsidiaries		(362,709	)		(301,415	)		(270,747	)		(408,217	)		(362,709	)		(301,415	)
Dividends received from subsidiaries		129,217			78,360			56,500			57,000			129,217			78,360
Depreciation and amortization		15			15			(78	)		12			15			15
Amortization of debt issuance costs		450			131			—			556			450			131
Equity based compensation		21,208			15,120			14,850			21,491			21,208			15,120
Net tax benefit related to equity compensation plans		2,597			345			766
Changes in other assets and liabilities, net		(6,646	)		(2,069	)		(7,864	)		12,522			(4,049	)		(1,724	)
Net cash provided by operating activities		137,150			76,989			37,027			115,046			137,150			76,989
INVESTING ACTIVITIES
Net capital investment in subsidiaries		(60,264	)		(96,678	)		(331	)		(207,575	)		(60,264	)		(96,678	)
Net (increase) decrease in investment securities		(11,051	)		(29,648	)		21
Net decrease (increase) in investment securities											40,235			(11,051	)		(29,648	)
Net cash used in investing activities		(71,315	)		(126,326	)		(310	)		(167,340	)		(71,315	)		(126,326	)
FINANCING ACTIVITIES
Cash dividends paid		(66,750	)		(60,281	)		(59,436	)		(72,030	)		(66,750	)		(60,281	)
Proceeds from short-term debt		—			15,000			—			—			—			15,000
Repayment of short-term debt		—			(15,000	)		—			—			—			(15,000	)
Proceeds from long-term debt		—			200,000			—			110,000			—			200,000
Payment of debt issuance costs		—			(2,250	)		—			(2,129	)		—			(2,250	)
Proceeds from exercise of stock options and sales of treasury stock		19,048			5,186			4,637			2,136			19,048			5,186
Purchases of treasury stock		(5,506	)		(63,766	)		(4,496	)		(31,997	)		(5,506	)		(63,766	)
Net cash (used in) provided by in financing activities		(53,208	)		78,889			(59,295	)
Net increase (decrease) in cash		12,627			29,552			(22,578	)
Net cash provided by (used in) in financing activities											5,980			(53,208	)		78,889
Net (decrease) increase in cash											(46,314	)		12,627			29,552
Cash and cash equivalents at beginning of period		172,745			143,193			165,771			185,372			172,745			143,193
Cash and cash equivalents at end of period	$	185,372		$	172,745		$	143,193		$	139,058		$	185,372		$	172,745

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Disclosure Controls and Procedures At the end of the period covered by this Annual Report on Form 10-K, the Company’s Chief Executive Officer and Chief Financial Officer have each evaluated the effectiveness of the Company’s “Disclosure Controls and Procedures” (as defined in Rule 13a-15(e) of the Exchange Act) and have concluded that the Company’s Disclosure Controls and Procedures were effective as of the end of the period covered by this Annual Report on Form 10-K.

Management’s Report on Internal Control Over Financial Reporting Management of the Company is responsible for establishing and maintaining adequate “internal control over financial reporting,” as such term is defined in Rule 13a-15(f) promulgated under the Exchange Act. Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer of the Company, and effected by the Board, management and other personnel, an evaluation of the effectiveness of internal control over financial reporting was conducted based on the criteria established by the Committee of Sponsoring Organizations of the Treadway Commission's Internal Control - Integrated Framework (2013).

Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. In addition, given the Company’s size, operations and footprint, lapses or deficiencies in internal controls may occur from time to time.

Based on the evaluation under the framework in Internal Control - Integrated Framework (2013), management (with the participation of the Company’s Chief Executive Officer and Chief Financial Officer) under the oversight of the Board of Directors, has concluded that internal control over financial reporting was effective at the end of the period covered by this Annual Report on Form 10-K. KPMG LLP ~~LLP,~~, Kansas City, Missouri, (U.S. PCAOB Auditor Firm ID: 185), the independent registered public accounting firm that audited the financial statements included within this report, has issued an attestation report on the effectiveness of internal control over financial reporting at the end of the period covered by this report. KPMG LLP's attestation report is set forth below.

Changes in Internal Control Over Financial Reporting No change in the Company’s internal control over financial reporting occurred during the last quarter of the period covered by this Annual Report on Form 10-K that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

We have audited UMB Financial ~~Corporation’s (and subsidiaries)~~Corporation and subsidiaries’ (the Company) internal control over financial reporting as of December 31, ~~2021,~~2022, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2021,~~2022, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, ~~2021~~2022 and ~~2020,~~2021, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, ~~2021,~~2022, and the related notes (collectively, the consolidated financial statements), and our report dated February ~~24, 2022~~23, 2023 expressed an unqualified opinion on those consolidated financial statements.

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying ~~Management’s~~Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The information required by this item relating to executive officers is included in Part I of this Annual Report on Form 10-K under the caption "Executive Officers of the Registrant."

The information required by this item regarding Directors is incorporated herein by reference to information to be included under the caption "Proposal #1: Election of Directors" of the Company's Proxy Statement for the Annual Meeting of Shareholders to be held on April ~~26, 2022~~25, 2023 (the ~~2022~~2023 Annual Meeting of Shareholders), which will be provided to shareholders within 120 days after December 31, ~~2021.~~2022.

The information required by this item regarding the Audit Committee and the Audit Committee financial experts is incorporated herein by reference to information to be included under the caption "Corporate Governance – Committees of the Board of Directors – Audit Committee" of the Company's Proxy Statement for the ~~2022~~2023 Annual Meeting of Shareholders, which will be provided to shareholders within 120 days after December 31, ~~2021.~~2022.

The information required by this item concerning Section 16(a) beneficial ownership reporting compliance is incorporated herein by reference to information to be included under the caption "Stock Ownership – Section 16(a) Beneficial Ownership Reporting Compliance" of the Company's Proxy Statement for the ~~2022~~2023 Annual Meeting of Shareholders, which will be provided to shareholders within 120 days after December 31, ~~2021.~~2022.

The Company has adopted a code of ethics that applies to all directors, officers and employees, including its chief executive officer, chief financial officer and chief accounting officer. You can find the Company's code of ethics on its website by going to the following address: http://investorrelations.umb.com. Information on the Company’s website is not incorporated by reference into this report and should not be considered part of this document. The Company will post on its website any amendments or waivers to its code of ethics that are required to be disclosed under the rules of either the SEC or NASDAQ. A copy of the code of ethics will be provided, at no charge, to any person requesting the same, by written notice sent to the Company's Corporate Secretary, 6^th floor, 1010 Grand Blvd., Kansas City, Missouri 64106.

The information required by this item is incorporated herein by reference to information to be included under the Executive Compensation sections of the Company's Proxy Statement for the ~~2022~~2023 Annual Meeting of Shareholders, which will be provided to shareholders within 120 days after December 31, ~~2021.~~2022.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by this item is incorporated herein by reference to the Company's Proxy Statement for the ~~2022~~2023 Annual Meeting of Shareholders to information to be included under the caption "Stock Ownership - Principal Shareholders," which will be provided to shareholders within 120 days after December 31, ~~2021.~~2022.

The information required by this item is incorporated herein by reference to the Company's Proxy Statement for the 2022 Annual Meeting of Shareholders, which will be provided to shareholders within 120 days after

December 31, ~~2021,~~2022, under the caption "Stock Ownership – Stock Owned by Directors, Nominees, and Executive Officers."

The following table summarizes shares authorized for issuance under the Company’s equity compensation plans as of December 31, ~~2021:~~2022:

Plan Category	Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)		Weighted average exercise price of outstanding options, warrants and rights (b)		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)		Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)		Weighted average exercise price of outstanding options, warrants and rights (b)		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)
Equity compensation plans approved by security holders
2005 Long Term Incentive Plan		171,340	$	60.19	None			137,858	$	62.08	None
2018 Omnibus Incentive Compensation Plan	None		None			1,407,787	None		None			2,379,522
Equity compensation plans not approved by security holders	None		None		None		None		None		None
Total		171,340	$	60.19		1,407,787		137,858	$	62.08		2,379,522

For additional information concerning the Company’s equity compensation plans, see Note 11, “Employee Benefits,” in the Notes to the Consolidated Financial Statements provided in Item 8 of this report.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this item is incorporated herein by reference to the information to be provided under the captions “Corporate Governance – Transactions with Related Persons”, “Corporate Governance – The Board of Directors – Independent Directors” and “Corporate Governance – Committees of the Board of Directors” of the Company's Proxy Statement for the ~~2022~~2023 Annual Meeting of Shareholders, which will be provided to shareholders within 120 days after December 31, ~~2021.~~2022.

The information required by this item is incorporated herein by reference to the information to be provided under the caption "Proposal #3: Ratification of the Corporate Audit Committee’s Engagement of KPMG LLP as UMB’s Independent Public Accounting Firm for ~~2022”~~2023” of the Company's Proxy Statement for the ~~2022~~2023 Annual Meeting of Shareholders, which will be provided to shareholders within 120 days after December 31, ~~2021.~~2022.

The following Consolidated Financial Statements of the Company are included in Item 8 of this Annual Report on Form 10-K.

Consolidated Statements of Income for the Three Years Ended December 31, ~~2021~~2022

Consolidated Statements of Comprehensive Income for the Three Years Ended December 31, ~~2021~~2022

Consolidated Statements of Changes in Shareholders' Equity for the Three Years Ended December 31, ~~2021~~2022

Consolidated Statements of Cash Flows for the Three Years Ended December 31, ~~2021~~2022

Condensed Consolidated Financial Statements for the parent company only may be found in Item 8 above. All other schedules have been omitted because the required information is presented in the Consolidated Financial Statements or in the notes thereto, the amounts involved are not significant or the required subject matter is not applicable.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, as of February ~~24, 2022.~~23, 2023.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities on the date indicated.

Missouri	43-0903811
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1010 Grand Boulevard, Kansas City, Missouri	64106
(Address of principal executive offices)	(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 Par Value	UMBF	The NASDAQ Global Select Market

Class	Outstanding at February ~~18, 2022~~16, 2023
Common Stock, $1.00 Par Value	~~48,455,423~~48,503,947


~~Auditor Firm Id:~~	~~185~~	~~Auditor Name:~~	~~KPMG LLP~~	~~Auditor Location:~~	~~Kansas City, Missouri, United States~~

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

PART I	3

ITEM 1. BUSINESS	3

ITEM 1A. RISK FACTORS	11

ITEM 1B. UNRESOLVED STAFF COMMENTS	20

ITEM 2. PROPERTIES	20

ITEM 3. LEGAL PROCEEDINGS	21

ITEM 4. MINE SAFETY DISCLOSURES	21

PART II	22

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	22

ITEM 6. [RESERVED]

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	24

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	48

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	56

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	126

ITEM 9A. CONTROLS AND PROCEDURES	126

ITEM 9B. OTHER INFORMATION	128

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS	128

PART III	128

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	128

ITEM 11. EXECUTIVE COMPENSATION	128

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	128

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	129

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES	129

PART IV	130

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	130

ITEM 16. FORM 10-K SUMMARY	131

SIGNATURES	132

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


Name	Age	Position with Registrant

R. Brian Beaird	4849	Mr. Beaird has served as Executive Vice President, Chief Human Resources Officer since October 2019. Prior to this time, he served as Senior Vice President/Director of Associate Experience and Rewards, Director Compensation and Systems, Manager Bank Strategy and Administration, and Manager Commercial Strategy and Administration. Mr. Beaird held these positions from July 2018 until October 2019, August 2017 until July 2018, September 2015 until August 2017, and December 2011 until September 2015, respectively.
James Cornelius	6061	Mr. Cornelius has served as the President of Institutional Banking for the Bank since June 2015. Prior to this time, he served as the President of Institutional Banking and Investor services from June 2012 until June 2015.
Amy Harris	3637	Ms. Harris has served as Executive Vice President and Chief Legal Officer since January 2021. Ms. ~~Harris’~~Harris served the Company as Senior Vice President, Deputy General Counsel and Manager of Legal Operations from January 2020 to January 2021. She also served as Corporate Legal Counsel for the Company from October 2014 to January 2020. Prior to joining the Company, Ms. Harris worked in private practice focusing on commercial, corporate and employment cases.


Shannon A. Johnson	4243	Ms. Johnson has served as Executive Vice President and Chief Administrative Officer since October 2019. Ms. Johnson’s previous positions with the Company include Executive Vice President, Chief Human Resources Officer; Senior Vice President, Executive Director of Talent Management and Development; and Senior Vice President, Director of Talent Management. Ms. Johnson held these positions from April 2015 to October 2019, May 2011 to April 2015, and December 2009 to May 2011, respectively.
Dominic Karaba	5152	Mr. Karaba has served as President Commercial Banking since September 2021. Mr. Karaba has also served as President Specialty Banking from April 2018 to September 2021 and Executive Vice President – Business Banking Director from August 2013 to April 2018. Overall, Mr. Karaba has over 15 years of experience in the banking industry.
J. Mariner Kemper	4950	Mr. Kemper has served as the President of the Company since November 2015 and as the Chairman and Chief Executive Officer of the Company since May 2004. He served as the Chairman and Chief Executive Officer of the Bank between December 2012 and January 2014, and as the Chairman of UMB Bank Colorado, n.a. (a prior subsidiary of the Company) between 2000 and 2012. He was President of UMB Bank Colorado from 1997 to 2000. Mr. Kemper is the brother of Mr. Alexander C. Kemper, who currently serves on the Company’s Board of Directors.
Stacy King	4647	Ms. King has served as Executive Vice President, Chief Risk Officer of the Company since March 2020. From May 2019 until March 2020, she served as Senior Director, Operations Management – Benefit Accounts for Willis Towers Watson. Prior to that time, she served as Senior Vice President, Director Healthcare Operations & Compliance; Senior Vice President/Vice President, Director Healthcare Services Risk & Compliance for the Bank; Vice President, Compliance Manager – Bank Operations & Healthcare Services; and Compliance Analyst-Corporate Risk for the Company. Ms. King held these positions from September 2018 until May 2019, October 2015 until September 2018, August 2014 until October 2015, and September 2013 until August 2014, respectively.
Nikki Newton	5051	Mr. Newton has served as the President of Private Wealth Management of the Bank since May 2019. From January 1998 until May 2018, Mr. Newton served in various capacities with Waddell & Reed Financial, Inc. or its subsidiary, Ivy Distributors, Inc, including most recently, serving as President of Ivy Distributors, Inc. and Ivy Global from August 2017 to May 2018, and Head of Global Distribution and President of Ivy Global from January 2014 to August 2017.


David C. Odgers	5253	Mr. Odgers has served as Senior Vice President, Chief Accounting Officer of the Company since January 2020, and as the Company’s Controller since January 2014. Mr. Odgers was previously the Company’s Assistant Controller from January 2005 to January 2014.
John C. Pauls	5759	Mr. Pauls has served as Executive Vice President, General Counsel and Corporate Secretary of the Company and the Bank since June 2016. Mr. Pauls served as interim General Counsel from April 2016 until his full appointment in June of 2016. He has been with UMB for over 25 years, having served as a top legal advisor for the Company and the Bank for over 1920 years.
James D. Rine	5152	Mr. Rine has served as Vice Chairman of the Company since November 2020 and President and Chief Executive Officer of the Bank since October 2018. He served as President of Commercial Banking from December 2017 until October 2018 and as President of Commercial Banking/Western Region from October 2016 to December 2017. Prior to this time, Mr. Rine served as the President of the Kansas City Region since October 2011. Overall, Mr. Rine has over 20 years of commercial banking experience with the Bank.
Ram Shankar	4950	Mr. Shankar was named as Executive Vice President and Chief Financial Officer of the Company effective August 2016. From September 2011 until his employment with the Company commenced, he worked at First Niagara Financial Group, most recently serving as managing director where he headed financial planning and analysis and investor relations. Prior to that, Mr. Shankar spent time at FBR Capital Markets as a senior research analyst and at M&T Bank Corporation in the financial planning measurement and corporate finance/mergers & acquisitions group.


Thomas S. Terry	5859	Mr. Terry has served as Executive Vice President and Chief Credit Officer since October 2019. From January 2011 until October 2019, Mr. Terry served as Executive Vice President and Chief Lending Officer of the Company, and prior to this time, Mr. Terry served as Executive Vice President. Mr. Terry first joined UMB in 1986, and subsequently joined the Commercial Lending department in 1987 where he worked as a loan officer until 2011.
Abigail Wendel	4849	Ms. Wendel was named President of Consumer Banking of the Bank in September 2018. She has also served as Chief Strategy Officer for the Company from June 2015 until September 2018, and as the Director of Investor and Government Relations for the Company from February 2013 through June 2015.
Uma Wilson	4344	Ms. Wilson was named Executive Vice President, Chief Information and Product Officer in September 2021. Previously she served as Executive Vice President, Director of Bank Product, Treasury Management/Card Sales and Implementation and Executive Vice President, Director of Bank Product Group. Ms. Wilson held these positions from January 2020 to September 2021 and May 2015 to January 2020, respectively.

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
October 1 - October 31, 2021		24	$	88.04		24		1,997,593
November 1 - November 30, 2021		2,093		101.53		2,093		1,995,500
December 1 - December 31, 2021		10,145		100.81		10,145		1,985,355
Total		12,262	$	100.91		12,262

	2021			2020
Allowance – January 1	$	218,583		$	101,788
Cumulative effect adjustment⁽¹⁾		—			9,030
Adjusted allowance – January 1		218,583			110,818
Provision for credit losses		23,000			127,890
Charge-offs:
Commercial		(13,981	)		(8,587	)
Specialty lending		(31,945	)		—
Commercial real estate		(1,198	)		(11,939	)
Consumer real estate		(96	)		(219	)
Consumer		(2,424	)		(607	)
Credit cards		(6,011	)		(7,326	)
Leases and other		(8	)		(11	)
Total charge-offs		(55,663	)		(28,689	)
Recoveries:
Commercial and industrial		6,694			6,473
Specialty lending		187			—
Commercial real estate		1,560		91
Consumer real estate		142		69
Consumer		223			307
Credit cards		1,967			1,618
Leases and other		18			6
Total recoveries		10,791			8,564
Net charge-offs		(44,872	)		(20,125	)
Allowance for credit losses – end of period	$	196,711		$	218,583
Allowance for credit losses on loans	$	194,771		$	215,973
Allowance for credit losses on held-to-maturity securities		1,940			2,610
Loans at end of year, net of unearned interest		17,170,871			16,103,651
Held-to-maturity securities at end of period		1,480,416			1,014,614
Total assets at amortized cost		18,651,287			17,118,265
Average loans, net of unearned interest		16,618,350			15,109,392
Allowance for credit losses on loans to loans at end of period		1.13	%		1.34	%
Allowance for credit losses – end of period to total assets at amortized cost		1.05	%		1.28	%
Allowance as a multiple of net charge-offs	4.38x			10.86x
Net charge-offs to average loans		0.27	%		0.13	%

	Mortgage-backed Securities					State and Political Subdivisions
December 31, 2022	Fair Value		Weighted Average Yield			Fair Value		Weighted Average Yield
Due in one year or less	$	11,862		2.70	%	$	63,216		3.06	%
Due after 1 year through 5 years		1,101,193		2.26			358,741		2.64
Due after 5 years through 10 years		2,827,094		1.82			504,186		2.88
Due after 10 years		41,973		2.42			436,264		3.30
Total	$	3,982,122		1.94	%	$	1,362,407		2.97	%

	Company
Capital ratios
Common Equity Tier 1 capital to risk-weighted assets		~~12.05~~10.62	%
Tier 1 capital to risk-weighted assets		~~12.05~~10.62	%
Total capital to risk-weighted assets		~~13.88~~12.50	%
Leverage ratio (Tier 1 capital to total average assets less adjustments ⁽¹⁾)		~~7.61~~8.43	%

FINANCING ACTIVITIES
Net increase in demand and savings deposits		8,573,130			5,798,276			2,242,368
Net (decrease) increase in time deposits		(24,454	)		(350,269	)		79,616
Net increase in fed funds purchased and repurchase agreements		922,938			418,989			377,588
Proceeds from short-term debt		—			15,000			—
Repayment of short-term debt		—			(15,000	)		—
Proceeds from long-term debt		—			200,000			—
Payment of debt issuance costs		—			(2,250	)		—
Cash dividends paid		(66,750	)		(60,281	)		(59,436	)
Proceeds from exercise of stock options and sales of treasury shares		19,048			5,186			4,637
Purchases of treasury stock		(5,506	)		(63,766	)		(4,496	)
Net cash provided by financing activities		9,418,406			5,945,885			2,640,277
Increase (decrease) in cash and cash equivalents		5,716,998			1,828,396			(4,951	)
Cash and cash equivalents at beginning of year		3,497,566			1,669,170			1,674,121
Cash and cash equivalents at end of year	$	9,214,564		$	3,497,566		$	1,669,170

Supplemental disclosures:
Income tax payments	$	92,584		$	34,068		$	2,245
Total interest payments		47,106			84,105			189,582
Noncash disclosures:
Acquisition of low-income housing tax credit investments	$	30,182		$	59,072		$	18,602
Commitment to fund low-income housing tax credit investments		30,182			59,072			18,602

FINANCING ACTIVITIES
Net (decrease) increase in demand and savings deposits		(3,636,068	)		8,573,130			5,798,276
Net increase (decrease) in time deposits		65,497			(24,454	)		(350,269	)
Net (decrease) increase in fed funds purchased and repurchase agreements		(1,016,268	)		922,938			418,989
Proceeds from short-term debt		—			—			15,000
Repayment of short-term debt		—			—			(15,000	)
Proceeds from long-term debt		110,000			—			200,000
Payment of debt issuance costs		(2,129	)		—			(2,250	)
Cash dividends paid		(72,030	)		(66,750	)		(60,281	)
Proceeds from exercise of stock options and sales of treasury shares		2,136			19,048			5,186
Purchases of treasury stock		(31,997	)		(5,506	)		(63,766	)
Net cash (used in) provided by financing activities		(4,580,859	)		9,418,406			5,945,885
(Decrease) increase in cash and cash equivalents		(7,656,690	)		5,716,998			1,828,396
Cash and cash equivalents at beginning of year		9,214,564			3,497,566			1,669,170
Cash and cash equivalents at end of year	$	1,557,874		$	9,214,564		$	3,497,566

Supplemental disclosures:
Income tax payments	$	101,952		$	92,584		$	34,068
Total interest payments		196,482			47,106			84,105
Noncash disclosures:
Acquisition of low-income housing tax credit investments	$	58,337		$	30,182		$	59,072
Commitment to fund low-income housing tax credit investments		58,337			30,182			59,072
Transfer of loans to other real estate owned		12,381			—			—
Transfer of securities from available-for-sale to held-to-maturity		3,823,670			—			—

	Year Ended December 31, 2019
	Commercial			Real estate			Consumer			Leases			Total
Allowance for loan losses:
Beginning balance	$	80,888		$	13,664		$	9,071		$	12		$	103,635
Charge-offs		(36,716	)		(444	)		(8,920	)		—			(46,080	)
Recoveries		7,746			1,122			2,515			—			11,383
Provision		19,340			5,972			7,545			(7	)		32,850
Ending Balance	$	71,258		$	20,314		$	10,211		$	5		$	101,788
Ending Balance: individually evaluated for impairment	$	271		$	467		$	—		$	—		$	738
Ending Balance: collectively evaluated for impairment		70,987			19,847			10,211			5			101,050
Loans:
Ending Balance: loans	$	6,487,031		$	6,582,497		$	360,216		$	1,978		$	13,431,722
Ending Balance: individually evaluated for impairment		25,769			26,047			—			—			51,816
Ending Balance: collectively evaluated for impairment		6,461,262			6,556,450			360,216			1,978			13,379,906

2021	30-89 Days Past Due and Accruing		Greater than 90 Days Past Due and Accruing		Non- Accrual		Total Past Due		Current		Total
State and political subdivisions:
Competitive	$	7,795	$	—	$	—	$	7,795	$	991,553	$	999,348
Utilities		—		—		—		—		84,934		84,934
Total state and political subdivisions	$	7,795	$	—	$	—	$	7,795	$	1,076,487	$	1,084,282

	Derivative Assets				Derivative Liabilities
	December 31,				December 31,
Fair Value	2021		2020		2021		2020
Interest Rate Products:
Derivatives not designated as hedging instruments	$	57,134	$	103,506	$	13,944	$	9,375
Derivatives designated as hedging instruments		546		48		—		—
Total	$	57,680	$	103,554	$	13,944	$	9,375

	For the Year Ended December 31, 2022
Derivatives in Cash Flow Hedging Relationships	Gain Recognized in OCI on Derivative		Gain Recognized in OCI Included Component		Gain Recognized in OCI Excluded Component		Gain (Loss) Reclassified from AOCI into Earnings			Gain (Loss) Reclassified from AOCI into Earnings Included Component			Loss Reclassified from AOCI into Earnings Excluded Component
Interest rate floor	$	—	$	—	$	—	$	4,998		$	7,248		$	(2,250	)
Interest rate swaps		12,608		12,608		—		(502	)		(502	)		—
Total	$	12,608	$	12,608	$	—	$	4,496		$	6,746		$	(2,250	)

	For the Year Ended December 31, 2021
Derivatives in Cash Flow Hedging Relationships	Gain Recognized in OCI on Derivative		Gain Recognized in OCI Included Component		Gain Recognized in OCI Excluded Component		Gain (Loss) Reclassified from AOCI into Earnings			Gain (Loss) Reclassified from AOCI into Earnings Included Component			Loss Reclassified from AOCI into Earnings Excluded Component
Interest rate floor	$	—	$	—	$	—	$	4,696		$	6,946		$	(2,250	)
Interest rate swaps		3,106		3,106		—		(1,344	)		(1,344	)		—
Total	$	3,106	$	3,106	$	—	$	3,352		$	5,602		$	(2,250	)

	For the Year Ended December 31, 2020
Derivatives in Cash Flow Hedging Relationships	Gain (Loss) Recognized in OCI on Derivative			Gain (Loss) Recognized in OCI Included Component			Loss Recognized in OCI Excluded Component			Gain (Loss) Reclassified from AOCI into Earnings			Gain (Loss) Reclassified from AOCI into Earnings Included Component			Loss Reclassified from AOCI into Earnings Excluded Component
Interest rate floor	$	28,390		$	34,917		$	(6,527	)	$	2,943		$	5,398		$	(2,455	)
Interest rate swaps		(7,411	)		(7,411	)		—			(1,038	)		(1,038	)		—
Total	$	20,979		$	27,506		$	(6,527	)	$	1,905		$	4,360		$	(2,455	)

	For the Year Ended December 31, 2019
Derivatives in Cash Flow Hedging Relationships	Loss Recognized in OCI on Derivative			Loss Recognized in OCI Included Component			Loss Recognized in OCI Excluded Component			Loss Reclassified from AOCI into Earnings			Loss Reclassified from AOCI into Earnings Included Component			Loss Reclassified from AOCI into Earnings Excluded Component
Interest rate floor	$	(9,278	)	$	(4,245	)	$	(5,033	)	$	(874	)	$	—		$	(874	)
Interest rate swaps		(6,040	)		(6,040	)		—			(149	)		(149	)		—
Total	$	(15,318	)	$	(10,285	)	$	(5,033	)	$	(1,023	)	$	(149	)	$	(874	)

3.1	Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2006 and filed with the Commission on May 9, 2006).
3.2	Bylaws, amended as of ~~October 28, 2014~~January 24, 2023 (incorporated by reference to Exhibit ~~3.2 to~~3.1 of the Company’s ~~Quarterly~~Current Report on Form ~~10-Q for the quarter ended June 30, 2016~~8-K dated January 24, 2023 and filed with the Commission on ~~August 2, 2016)~~January 26, 2023).
4.1	Description of the capital stock included in the Registration Statement on Form 8-A (incorporated by reference to the Registration Statement on Form 8-A dated May 1, 2018 and filed with the Commission on May 1, 2018).
4.2	Description of the capital stock included in the Registration Statement on Form S-3 (incorporated by reference to the Registration Statement on Form S-3 ASR dated ~~April 9, 2019~~August 17, 2022 and filed with the Commission on ~~April 9, 2019)~~August 17, 2022).
4.3	Description of UMB Financial Corporation’s Securities (incorporated by reference to Exhibit 4.3 to the Company’s Form 10-K for December 31, 2019 and filed with the Commission on February 27, 2020).
4.4	Indenture, dated as of September 17, 2020, by and between UMB Financial Corporation and Wells Fargo, National Association (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K dated September 17, 2020 and filed with the Commission on September 22, 2020).
4.5	Supplemental Indenture, dated as of September 17, 2020, by and between UMB Financial Corporation and Wells Fargo, National Association, as Trustee, with respect to the 3.700% Fixed-to-Fixed Rate Subordinated Notes due 2030 (incorporated by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K dated September 17, 2020 and filed with the Commission on September 22, 2020).
4.6	Form of 3.700% Fixed-to-Fixed Rate Subordinated Notes due 2030 (incorporated by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K dated September 17, 2020 and filed with the Commission on September 22, 2020).
4.7	Second Supplemental Indenture, dated as of September 28, 2022, by and between UMB Financial Corporation and Wells Fargo, National Association, as Trustee, with respect to the 6.250% Fixed-to-Fixed Rate Subordinated Notes due 2032 (incorporated by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K dated September 28, 2022 and filed with the Commission on September 28, 2022).

4.8	Form of 6.250% Fixed-to-Fixed Rate Subordinated Notes due 2032 (incorporated by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K dated September 28, 2022 and filed with the Commission on September 28, 2022).
10.1	UMB Financial Corporation Long-Term Incentive Compensation Plan amended and restated as of April 23, 2013 (incorporated by reference to Appendix A of the Company’s Proxy Statement for the Company’s April 23, 2013 Annual Meeting filed with the Commission on March 13, 2013).
10.2	Deferred Compensation Plan, dated as of December 1, 2008 (incorporated by reference to Exhibit 10.3 to the Company’s Form 10-K for December 31, 2017 and filed with the Commission on February 22, 2018).

10.3	UMBF 2005 Short-Term Incentive Plan (incorporated by reference to Exhibit 10.7 to the Company’s Form 10-K for December 31, 2004 and filed with the Commission on March 14, 2005).
10.4	~~Form of 2016 Performance-Based Restricted Stock~~Performance Share Unit Award Agreement for the UMB Financial Corporation ~~Long-Term Incentive Compensation Plan (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10Q filed with the Commission on August 2, 2016).~~
~~10.5~~	~~Form of 2016 Service-Based Restricted Stock Award Agreement for the UMB Financial Corporation Long-Term~~Omnibus Incentive Compensation Plan (incorporated by reference to Exhibit 10.2 toof the Company’s ~~Quarterly~~Current Report on Form ~~10Q~~8-K dated June 8, 2018 and filed with the Commission on ~~August 2, 2016)~~June 14, 2018).
10.5	Restricted Share Unit Award Agreement for the UMB Financial Corporation Omnibus Incentive Compensation Plan filed herewith.
10.6	Form of 2016 Stock Option Award Agreement for the UMB Financial Corporation Long-Term Incentive Compensation Plan (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10Q filed with the Commission on August 2, 2016).
10.7	UMBF Omnibus Incentive Compensation Plan (incorporated by reference to Appendix A of the Company’s Proxy Statement for the Company’s April 24, 2018 Annual Meeting filed with the Commission on March 13, 2018).
10.8	Performance Share Unit Award Agreement with ~~James D. Rine~~Shannon A. Johnson (incorporated by reference to Exhibit 10.1 toof the Company’s Current Report on Form 8-K dated July 25, 2022 and filed with the Commission on ~~February 18, 2020)~~July 29, 2022).
21.1	Subsidiaries of the Registrant filed herewith.
23.1	Consent of Independent Registered Public Accounting Firm – KPMG LLP filed herewith.
24.1	Power of Attorney filed herewith.
31.1	CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act filed herewith.
31.2	CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act filed herewith.
32.1	CEO Certification pursuant to Section 906 of the Sarbanes-Oxley Act filed herewith.
32.2	CFO Certification pursuant to Section 906 of the Sarbanes-Oxley Act filed herewith.
101.INS	XBRL Instance Document – The instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document filed herewith.
101.CAL	Inline XBRL Taxonomy Extension Calculation Document filed herewith.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document filed herewith.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document filed herewith.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document filed herewith.
104	The cover page of our Form 10-K for the year ended December 31, ~~2021,~~2022, formatted in iXBRL.

		UMB FINANCIAL CORPORATION

		/s/ J. Mariner Kemper
		J. Mariner Kemper
		Chairman of the Board,
		Chief Executive Officer

		/s/ Ram Shankar
		Ram Shankar
		Chief Financial Officer

		/s/ David C. Odgers
		David C. Odgers
		Chief Accounting Officer

Robin C. Beery	Director	Leroy J. Williams	Director
Robin C. Beery	Director	Leroy J. Williams	Director

Janine A. Davidson	Director	Kevin C. Gallagher	Director
Janine A. Davidson		Kevin C. Gallagher

Greg M. Graves	Director	Alexander C. Kemper	Director
Greg M. Graves	Director	Alexander C. Kemper	Director

Gordon E. Lansford III	Director	Timothy R. Murphy	Director
Gordon E. Lansford III	Director	Timothy R. Murphy	Director

Tamara M. Peterman	Director	Kris A. Robbins	Director
Tamara M. Peterman	Director	Kris A. Robbins	Director

L. Joshua Sosland	Director	/s/ J. Mariner Kemper	Director, Chairman of the Board, Chief Executive Officer
L. Joshua Sosland	Director	J. Mariner Kemper	Director, Chairman of the Board, Chief Executive Officer
		Attorney-in-Fact for each director