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. Yesx ☒ No ¨☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of RegulationS-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yesx ☒ No ¨☐

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

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 is a shell company (as defined in Rule12b-2 of the Exchange Act). ☐ Yes¨ ☒ Nox

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

As of ~~October~~April 27, ~~2016,~~2017, UMB Financial Corporation had ~~49,562,002~~49,851,395 shares of common stock outstanding.


	September 30, 2016			December 31, 2015			March 31, 2017			December 31, 2016
ASSETS
Loans:	$	10,293,494		$	9,430,761		$	10,757,236		$	10,540,383
Allowance for loan losses		(90,404	)		(81,143	)		(93,323	)		(91,649	)

Net loans		10,203,090			9,349,618			10,663,913			10,448,734

Loans held for sale		11,880			589			1,934			5,279
Investment securities:
Available for sale		6,295,687			6,806,949			6,551,593			6,466,334
Held to maturity (fair value of $1,097,988 and $691,379, respectively)		1,009,117			667,106
Held to maturity (fair value of $1,114,163 and $1,106,027, respectively)								1,206,639			1,115,932
Trading securities		58,062			29,617			75,494			39,536
Other securities		66,853			65,198			67,910			68,306

Total investment securities		7,429,719			7,568,870			7,901,636			7,690,108

Federal funds sold and securities purchased under agreements to resell		244,891			173,627			196,467			324,327
Interest-bearing due from banks		453,189			522,877			374,570			715,823
Cash and due from banks		354,184			458,217			373,671			422,117
Premises and equipment, net		287,267			281,471			282,398			289,007
Accrued income		93,016			90,127			97,035			99,045
Goodwill		228,396			228,346			228,396			228,396
Other intangibles, net		37,419			46,782			31,622			34,491
Other assets		383,095			373,721			424,495			425,205

Total assets	$	19,726,146		$	19,094,245		$	20,576,137		$	20,682,532

LIABILITIES
Deposits:
Noninterest-bearing demand	$	6,008,326		$	6,306,895		$	6,202,246		$	6,654,584
Interest-bearing demand and savings		8,288,670			7,529,972			8,622,219			8,780,309
Time deposits under $250,000		658,541			771,973			594,967			613,589
Time deposits of $250,000 or more		422,712			483,912			475,752			522,132

Total deposits		15,378,249			15,092,752			15,895,184			16,570,614
Federal funds purchased and repurchase agreements		2,021,123			1,818,062			2,390,364			1,856,937
Short-term debt		—			5,009
Long-term debt		75,418			86,070			76,104			76,772
Accrued expenses and taxes		163,221			161,245			142,987			172,967
Other liabilities		63,507			37,413			60,620			42,858

Total liabilities		17,701,518			17,200,551			18,565,259			18,720,148

SHAREHOLDERS’ EQUITY
Common stock, $1.00 par value; 80,000,000 shares authorized; 55,056,730 shares issued; and 49,546,069 and 49,396,366 shares outstanding, respectively		55,057			55,057
Common stock, $1.00 par value; 80,000,000 shares authorized, 55,056,730 shares issued, and 49,850,194 and 49,673,056 shares outstanding, respectively								55,057			55,057
Capital surplus		1,028,869			1,019,889			1,033,225			1,033,419
Retained earnings		1,112,613			1,033,990			1,174,587			1,142,887
Accumulated other comprehensive income (loss), net		42,512			(3,718	)
Treasury stock, 5,510,661 and 5,660,364 shares, at cost, respectively		(214,423	)		(211,524	)
Accumulated other comprehensive loss, net								(44,159	)		(57,542	)
Treasury stock, 5,206,536 and 5,383,674 shares, at cost, respectively								(207,832	)		(211,437	)

Total shareholders’ equity		2,024,628			1,893,694			2,010,878			1,962,384

Total liabilities and shareholders’ equity	$	19,726,146		$	19,094,245		$	20,576,137		$	20,682,532


	Three Months Ended September 30,					Nine Months Ended September 30,					Three Months Ended March 31,
	2016		2015			2016		2015			2017			2016
INTEREST INCOME
Loans	$	98,820	$	84,686		$	283,313	$	220,314		$	106,560		$	90,544
Securities:
Taxable interest		17,012		18,498			55,221		56,469			19,190			19,357
Tax-exempt interest		14,797		11,320			41,377		31,842			17,183			12,735

Total securities income		31,809		29,818			96,598		88,311			36,373			32,092
Federal funds and resell agreements		790		175			1,939		377			919			507
Interest-bearing due from banks		445		475			1,772		1,761			551			891
Trading securities		174		75			399		303			287			52

Total interest income		132,038		115,229			384,021		311,066			144,690			124,086

INTEREST EXPENSE
Deposits		4,626		3,863			12,817		10,433			5,966			4,055
Federal funds and repurchase agreements		1,894		427			4,750		1,389			3,469			1,230
Other		753		1,044			2,587		1,631			940			909

Total interest expense		7,273		5,334			20,154		13,453			10,375			6,194

Net interest income		124,765		109,895			363,867		297,613			134,315			117,892
Provision for loan losses		13,000		2,500			25,000		10,500			9,000			5,000

Net interest income after provision for loan losses		111,765		107,395			338,867		287,113			125,315			112,892

NONINTEREST INCOME
Trust and securities processing		60,218		65,182			179,448		199,862			60,404			59,485
Trading and investment banking		6,114		2,969			16,382		14,659			7,542			4,630
Service charges on deposit accounts		21,832		21,663			65,713		64,829			22,075			21,461
Insurance fees and commissions		698		480			3,355		1,636			646			1,497
Brokerage fees		4,712		2,958			13,159		8,748			5,377			4,185
Bankcard fees		17,086		17,624			52,636		51,842			17,752			18,016
Gain on sales of securities available for sale, net		2,978		101			8,509		8,404			468			2,933
Equity earnings (loss) on alternative investments		1,594		(5,032	)		2,191		(6,999	)
Equity losses on alternative investments												(614	)		(381	)
Other		6,716		3,153			18,352		10,874			7,130			4,524

Total noninterest income		121,948		109,098			359,745		353,855			120,780			116,350

NONINTEREST EXPENSE
Salaries and employee benefits		109,369		104,733			325,216		302,855			113,834			106,850
Occupancy, net		11,394		11,748			33,505		32,070			11,148			10,972
Equipment		16,231		17,228			49,545		46,810			17,668			16,282
Supplies and services		4,624		5,371			14,292		14,299			4,281			4,949
Marketing and business development		5,332		5,766			16,086		16,914			4,503			4,441
Processing fees		11,264		12,795			34,190		38,232			11,301			11,462
Legal and consulting		4,450		8,648			14,186		18,943			5,300			4,799
Bankcard		5,015		5,266			16,199		14,987			4,903			5,815
Amortization of other intangible assets		2,992		3,483			9,363		8,807			2,869			3,226
Regulatory fees		3,370		3,176			10,491		8,805			3,833			3,429
Other		5,742		7,065			22,497		18,934			9,126			8,219

Total noninterest expense		179,783		185,279			545,570		521,656			188,766			180,444

Income before income taxes		53,930		31,214			153,042		119,312			57,329			48,798
Income tax expense		11,984		8,763			37,175		32,882			13,148			12,395

NET INCOME	$	41,946	$	22,451		$	115,867	$	86,430		$	44,181		$	36,403

PER SHARE DATA
Net income - basic	$	0.86	$	0.46		$	2.37	$	1.85
Net income - diluted		0.85		0.46			2.36		1.84
Net income – basic											$	0.90		$	0.75
Net income – diluted												0.89			0.74
Dividends		0.245		0.235			0.735		0.705			0.255			0.245
Weighted average shares outstanding - basic		48,849,251		48,577,282			48,792,419		46,619,428
Weighted average shares outstanding - diluted		49,284,280		49,036,332			49,162,200		47,080,009
Weighted average shares outstanding – basic												49,109,872			48,756,433
Weighted average shares outstanding – diluted												49,829,508			49,016,400


	Nine Months Ended						Three Months Ended
	September 30,						March 31,
	2016			2015			2017			2016
Operating Activities
Net Income	$	115,867		$	86,430
Net income							$	44,181		$	36,403
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		25,000			10,500			9,000			5,000
Net accretion of premiums and discounts from acquisition		(1,711	)		(1,255	)		(838	)		(604	)
Depreciation and amortization		40,949			38,498			14,375			13,705
Deferred income tax expense (benefit)		911			(6,276	)
Net (increase) decrease in trading securities		(30,635	)		10,505
Gains on sales of securities available for sale, net		(8,509	)		(8,404	)
Deferred income tax benefit								(322	)		(1,417	)
Net (increase) decrease in trading securities and other earning assets								(35,278	)		3,219
Gains on sales of securities available for sale								(468	)		(2,933	)
Gains on sales of assets		(136	)		(99	)		(1,020	)		(268	)
Amortization of securities premiums, net of discount accretion		43,467			40,971			12,081			14,553
Originations of loans held for sale		(71,726	)		(78,931	)		(10,818	)		(14,345	)
Net gains on sales of loans held for sale		(1,281	)		(1,131	)		(299	)		(199	)
Proceeds from sales of loans held for sale		61,716			79,673			14,462			10,303
Equity-based compensation		8,682			9,489
Net tax benefit related to equity compensation plans		(261	)		732
Equity based compensation								3,332			2,476
Net tax benefit (deficiency) related to equity compensation plans								1,783			(34	)
Changes in:
Accrued income		(2,889	)		(4,811	)		2,010			125
Accrued expenses and taxes		4,789			146			(29,980	)		(40,297	)
Other assets and liabilities, net		(14,466	)		(2,582	)		(5,533	)		2,025

Net cash provided by operating activities		169,767			173,455			16,668			27,712

Investing Activities
Proceeds from maturities of securities held to maturity		29,757			31,410			16,682			8,672
Proceeds from sales of securities available for sale		951,263			782,789			86,069			282,031
Proceeds from maturities of securities available for sale		1,300,372			925,017			405,500			391,494
Purchases of securities held to maturity		(373,520	)		(341,773	)		(108,215	)		(146,670	)
Purchases of securities available for sale		(1,689,198	)		(1,293,123	)		(550,920	)		(702,529	)
Net increase in loans		(876,784	)		(604,895	)		(222,959	)		(274,053	)
Net (increase) decrease in fed funds sold and resell agreements		(71,264	)		29,675
Net increase in interest bearing balances due from other financial institutions		65,203			40,586
Net decrease in fed funds sold and resell agreements								127,860			2,803
Net decrease in interest bearing balances due from other financial institutions								22,362			33,693
Purchases of premises and equipment		(38,950	)		(42,100	)		(4,985	)		(8,499	)
Net cash activity from acquisitions		—			104,611
Proceeds from sales of premises and equipment		2,164			147			173			680
Increase in COLI/BOLI cash surrender value		(7,095	)		(204,647	)

Net cash used in investing activities		(708,052	)		(572,303	)		(228,433	)		(412,378	)

Financing Activities
Net increase in demand and savings deposits		460,129			854,302
Net (decrease) increase in demand and savings deposits								(610,428	)		543,871
Net decrease in time deposits		(173,783	)		(353,137	)		(65,002	)		(217,851	)
Net increase (decrease) in fed funds purchased and repurchase agreements		203,061			(682,532	)		533,427			(136,339	)
Net decrease in short-term debt		(5,000	)		(112,133	)
Repayment of long-term debt		(11,285	)		(10,597	)		(938	)		(1,092	)
Payment of contingent consideration on acquisitions		(3,031	)		(18,702	)		—			(3,031	)
Cash dividends paid		(36,385	)		(34,104	)		(12,710	)		(12,082	)
Proceeds from exercise of stock options and sales of treasury shares		10,250			5,494			4,107			4,076
Purchases of treasury stock		(14,189	)		(6,173	)		(4,028	)		(12,880	)

Net cash provided by (used in) financing activities		429,767			(357,582	)
Net cash (used in) provided by financing activities								(155,572	)		164,672

Decrease in cash and cash equivalents		(108,518	)		(756,430	)		(367,337	)		(219,994	)
Cash and cash equivalents at beginning of period		819,112			1,787,230			1,063,967			819,112

Cash and cash equivalents at end of period	$	710,594		$	1,030,800		$	696,630		$	599,118

Supplemental Disclosures:
Income taxes paid	$	30,995		$	36,404		$	668		$	12,146
Total interest paid		20,555			12,769			10,250			6,539
Transactions related to bank acquisitions:
Assets acquired		—			1,321,453
Liabilities assumed		—			1,159,920

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)

The consolidated financial statements include the accounts of UMB Financial Corporation and its subsidiaries (collectively, the Company) after elimination of all intercompany transactions. In the opinion of management of the Company, all adjustments, ~~relating to items that are~~which were of a normal recurring nature and necessary for a fair presentation of the financial position and results of operations have been made. The results of operations and cash flows for the interim periods presented may not be indicative of the results of the full ~~year.~~year ending December 31, 2017. The financial statements should be read in conjunction with “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” within this Quarterly Report on Form10-Q ~~(the Form 10-Q)~~ and in conjunction with the Company’s Annual Report on Form10-K for the fiscal year ended December 31, ~~2015~~2016 filed with the Securities and Exchange Commission (SEC) on February ~~25, 2016~~23, 2017 (the Form10-K).

The Company is a financial 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, Pennsylvania, South Dakota, Indiana, Utah, Minnesota, California, and Wisconsin. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. 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 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. A summary of the significant accounting policies to assist the reader in understanding the financial presentation is provided in the Notes to Consolidated Financial Statements in the Form10-K.

Cash and cash equivalents include Cash and due from banks and amounts due from the Federal Reserve Bank. 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 Federal Reserve Bank 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~~Statement of Cash Flows as of ~~September 30,~~March 31, 2017 and March 31, 2016 ~~and September 30, 2015~~ (in thousands):


	September 30,				March 31,
	2016		2015		2017		2016
Due from the Federal Reserve Bank	$	356,410	$	691,208
Due from the Federal Reserve					$	322,959	$	273,672
Cash and due from banks		354,184		339,592		373,671		325,446

Cash and cash equivalents at end of period	$	710,594	$	1,030,800	$	696,630	$	599,118

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 ~~$96.8~~$51.6 million and ~~$155.9~~$128.3 million at ~~September 30,~~March 31, 2017 and March 31, 2016, ~~and September 30, 2015,~~ respectively.

Basic ~~net~~ income per share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted ~~quarter-to-date net~~ income per share includes the dilutive effect of ~~435,029~~719,637 and ~~459,050~~259,967 shares of common stock issuable upon the exercise of outstanding stock options ~~granted by the Company~~at March 31, 2017 and 2016, respectively.

Options issued under employee benefit plans to purchase 151,002 and 845,157 shares of common stock were outstanding at ~~September 30,~~March 31, 2017 and 2016, ~~and 2015, respectively. Diluted year-to-date net~~respectively, but were not included in the computation of diluted income per share ~~includes~~because the ~~dilutive effect of 369,781 and 460,581 shares issuable upon the exercise of stock~~ options ~~granted by the Company and outstanding at September 30, 2016 and 2015, respectively.~~were anti-dilutive.

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)

Options issued under employee benefits plans to purchase 394,863 shares of common stock were outstanding at September 30, 2016, but were not included in the computation of quarter-to-date diluted EPS because the options were anti-dilutive. Options issued under employee benefits plans to purchase 628,698 shares of common stock were outstanding at September 30, 2016, but were not included in the computation of year-to-date diluted EPS because the options were anti-dilutive. Options issued under employee benefits plans to purchase 461,905 shares of common stock were outstanding at September 30, 2015, but were not included in the computation of quarter-to-date and year-to-date diluted EPS because the options were anti-dilutive.

Revenue RecognitionIn May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)No. 2014-09, “Revenue from Contracts with Customers.” The issuance is part of a joint effort by the FASB and the International Accounting Standards Board (IASB) to enhance financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards (IFRS) and, thereby, improving the consistency of requirements, comparability of practices and usefulness of disclosures. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In ~~November~~August 2015, the FASB issued ASUNo. 2015-14, which deferred the effective date of ASUNo. 2014-09 to annual reporting periods that begin after December 15, 2017. In March, ~~2016, the FASB issued ASU No. 2016-08, which intends to improve the operability~~April, and understandability of the implementation guidance on principal versus agent considerations within ASU No. 2014-09. In April 2016, the FASB issued ASU No. 2016-10, which clarifies guidance related to identifying performance obligations and licensing implementation within ASU No. 2014-09. In May 2016, the FASB issued ~~ASU Nos. 2016-11 and 2016-12, which further clarify guidance and provide practical expedients related~~implementation amendments to the ~~adoption~~May 2014 ASU (collectively, the “amended guidance”). The amended guidance affects any entity that enters into contracts with customers to transfer goods and services, unless those contracts are within the scope of ~~ASU No. 2014-09.~~other standards. The ~~standard~~amended guidance specifically excludes interest income, as well as other revenues associated with financial assets and liabilities, including loans, leases, securities, and derivatives. The amended guidance permits the use of either the full retrospective approach or ~~cumulative effect transition method.~~a modified retrospective approach. The Company plans to adopt the amended guidance using the modified retrospective approach on January 1, 2018. The Company is progressing through its process to implement the amended guidance. The Company has assessed its revenue streams to identify those contracts that are specifically excluded from the scope of the amended guidance and those that may be subject to the amended guidance. Subsequent to this initial scoping, the Company selected a representative sample of contracts from thein-scope revenue streams for review under the amended guidance (“key contracts”). The review of key contracts is in process. Upon completion of the review of the key contracts, the Company expects to group the remaining contracts based on the conclusions reached through the key contract review or to perform additional review of specific contracts that cannot be grouped. While progress has been made, the Company is currently evaluating the ~~effect~~impact that ~~these standards~~the amended guidance will have on its Consolidated Financial Statements and related disclosures. ~~The Company has not yet selected a transition method.~~

~~Equity-Based Compensation~~In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target could be Achieved after the Requisite Service Period.” The amendment is intended to reduce diversity in practice by clarifying that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this update were effective for interim and annual periods beginning after December 15, 2015. The adoption of this accounting pronouncement had no impact on the Company’s Consolidated Financial Statements.

~~Going Concern~~ In November 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The amendment addresses management’s responsibility in regularly evaluating whether there is substantial doubt about a company’s ability to continue as a going concern. The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter, although early adoption is permitted. The adoption of this accounting pronouncement will not impact the Company’s Consolidated Financial Statements.

~~Derivatives and Hedging~~ In November 2014, the FASB issued ASU No. 2014-16, “Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity.” The amendment is intended to address how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. The amendments in this update were effective for interim and annual periods beginning after December 15, 2015. The adoption of this accounting pronouncement had no impact on the Company’s Consolidated Financial Statements.

~~Consolidation~~In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis.” The amendment substantially changes the way reporting entities are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the new amendment. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership, and affect the consolidation analysis of reporting entities that are involved with VIEs. The amendments in this update were effective for interim and annual periods beginning after December 15, 2015. The standard permits the use of either the retrospective or cumulative effect transition method. The adoption of this accounting pronouncement had no impact on the Company’s Consolidated Financial Statements.

Financial Instruments In January 2016, the FASB issued ASUNo. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendment is intended to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this update are effective for interim and annual periods beginning after December 15, 2017. The standard requires the use of the cumulative effect transition method as of the beginning of the year of adoption. Except for certain provisions, early adoption is not permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements.

LeasesIn February 2016, the FASB issued ASUNo. 2016-02, “Leases.” The amendment changes the accounting treatment of leases, in that lessees will recognize most leaseson-balance sheet. This will increase reported assets and liabilities, as lessees will be required to recognize aright-of-use asset along with a lease liability, measured on a discounted basis. Lessees are allowed to account for short-term leases (those with a term of twelve months or less)off-balance sheet. The amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The standard requires the use of the modified retrospective transition method. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements.

Extinguishments of LiabilitiesIn March 2016, the FASB issued ASUNo. 2016-04, “Recognition of Breakage for Certain Prepaid Stored-Value Products.” The amendment is intended to reduce the diversity in practice related to the recognition of breakage. Breakage refers to the portion of a prepaid stored-value product, such as a gift card, that goes unused wholly or partially for an indefinite period of time. This amendment requires that breakage be accounted for consistent with the breakage guidance within ASUNo. 2014-09, “Revenue from Contracts with Customers.” The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The standard permits the use of either the modified retrospective or full retrospective transition method. Early adoption is permitted. The Company is currently evaluating the effect that ASU No. 2016-04 will have on its Consolidated Financial Statements. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. The Company will adopt ASUNo. 2016-04 in conjunction with its adoption of ASUNo. 2014-09.

~~Derivatives and Hedging~~In March 2016, the FASB issued ASU No. 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” The amendment is intended to clarify that the novation of a derivative contract that has been designated to be in a hedging relationship under Accounting Standards Codification (ASC) Topic 815 does not, in and of itself, represent a termination event for the derivative and does not require dedesignation of the hedging relationship. The amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendment permits the use of either a prospective or modified retrospective transition method. Early adoption is permitted. The adoption of this accounting pronouncement will not have noa significant impact on the Company’s Consolidated Financial Statements.

Equity-Based CompensationIn March 2016, the FASB issued ASUNo. 2016-09, “Improvements to Employee Share-Based Payment Accounting.” The amendment is part of the FASB’s simplification initiative and is intended to simplify the accounting around share-based payment award transactions. The amendments include changing the recording of excess tax benefits from being recognized as a part of surplus capital to being charged directly to the

income statement, changing the classification of excess tax benefits within the statement of cash flows, and allowing companies to account for forfeitures on an actual basis, as well as tax withholding changes. The amendment requires different transition methods for various components of the standard. The amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted.

In September 2016, the Company early adopted ASUNo. 2016-09 with an effective date of January 1, 2016. As part of the adoption of this standard, the Company made an accounting policy election to account for forfeitures on an actual basis and discontinue the use of an estimated forfeiture approach. Additionally, the Company selected the retrospective transition method for the reclassification of the “Net tax benefit related to equity compensation plans” from the financing section to the operating section of the Company’s Consolidated Statement of Cash Flows. The

impact to the Company’s Consolidated Statements of Income for adopting all provisions of the standard was an increase to net income of $158 thousand for the three-month period ended March 31, 2016 and an increase to net income of $220 thousand for the three-month period ended June 30, 2016. Upon adoption, the Company recorded a cumulative effect adjustment to the Company’s Consolidated Balance Sheets of $482 thousand as an increase to ~~the opening balance of~~ total equity. Prior period financial statements as of and for the three-month ~~and year-to-date periods~~period ended March 31, 2016 have been recast throughout this document. Prior period financial statements as of and for the three-month andyear-to-date periods ended June 30, 2016 will be recast when presented in future filings.

Credit LossesIn June 2016, the FASB issued ASU2016-13, “Measurement of Credit Losses on Financial Instruments.” This update replaces 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. This amendment broadens the information that an entity must consider in developing its expected credit loss estimates. Additionally, the update amends the accounting for credit losses foravailable-for-sale debt securities and purchased financial assets with a more-than-insignificant amount of credit deterioration since origination. This update requires 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 amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption in fiscal years beginning after December 15, 2018 is permitted. The amendment requires the use of the modified retrospective approach for adoption. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements.

Statement of Cash FlowsIn August 2016, the FASB issued ASU2016-15,“Classification of Certain Receipts and Cash Payments.” This amendment adds to and clarifies existing guidance regarding the classification of certain cash receipts and payments in the statement of cash flows with the intent of reducing diversity in practice with respect to eight types of cash ~~flows. The~~flows.The amendments in this update require full retrospective adoption and are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Statement of Cash Flows.

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 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. 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 credit-worthiness of the borrower.

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.~~condition as traditionally reflected by cash flow, balance sheet strength, operating results, and credit bureau ratings. The Company utilizespre-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.

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 anas-needed basis, in conformity with current market conditions and regulatory requirements. The underwriting standards address both owner andnon-owner occupied real estate.

Construction loans 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 bepre-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 byon-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.

Underwriting standards for residential real estate and home equity loans are based on the borrower’sloan-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 and periodically reviews the distribution of FICO scores relative to historical periods to monitor credit risk on its credit card loans. 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 considerednon-performing.

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 loan portfolio is comprised of loans originated by the Company and loans purchased in connection with the Company’s acquisition of Marquette Financial Companies (Marquette) on May 31, 2015 (the Acquisition Date). The purchased loans were recorded at estimated fair value at the Acquisition Date with no carryover of the related allowance. The purchased loans were segregated between those considered to be performing, non-purchased credit impaired loans (Non-PCI), and those with evidence of credit deterioration, purchased credit impaired loans (PCI). Purchased loans are considered impaired if there is evidence of credit deterioration and if it is probable, at acquisition, that all contractually required payments will not be collected.

At the Acquisition Date, gross loans purchased from the Marquette acquisition had a fair value of $980.4 million split between Non-PCI loans totaling $972.6 million and PCI loans totaling $7.8 million of loans. The gross contractually required principal and interest payments receivable for the Non-PCI loans and PCI loans totaled $983.9 million and $9.3 million, respectively.

The fair value estimates for purchased loans are based on expected prepayments and the amount and timing of discounted expected principal, interest and other cash flows. Credit discounts representing the principal losses

expected over the life of the loan are also a component of the initial fair value. In determining the Acquisition Date fair value of PCI loans, and in subsequent accounting, the Company generally aggregated purchased commercial, real estate, and consumer loans into pools of loans with common risk characteristics.

The difference between the fair value of Non-PCI loans and contractual amounts due at the Acquisition Date is accreted into income over the estimated life of the loans. Contractual amounts due represent the total undiscounted amount of all uncollected principal and interest payments.

The excess of PCI loans’ contractual amounts due over the amount of undiscounted cash flows expected to be collected is referred to as the non-accretable difference. The non-accretable difference, which is neither accreted into income nor recorded on the consolidated balance sheet, reflects estimated future credit losses and uncollectible contractual interest expected to be incurred over the life of the PCI loans. The excess cash flows expected to be collected over the carrying amount of PCI loans is referred to as the accretable yield. This amount is accreted into interest income over the remaining life of the purchased loans or pools using the level yield method. The accretable yield is affected by changes in interest rate indices for variable rate loans, changes in prepayment speed assumptions, and changes in expected principal and interest payments over the estimated lives of the PCI loans.

Each quarter the Company evaluates the remaining contractual amounts due and estimates cash flows expected to be collected over the life of the PCI loans. Contractual amounts due may increase or decrease for a variety of reasons, for example, when the contractual terms of the loan agreement are modified, when interest rates on variable rate loans change, or when principal and/or interest payments are received. Cash flows expected to be collected on PCI loans are estimated by incorporating several key assumptions similar to the initial estimate of fair value. These key assumptions include probability of default, loss given default, and the amount of actual prepayments after the Acquisition Date. Prepayments affect the estimated lives of loans and could change the amount of interest income, and possibly principal, expected to be collected. In re-forecasting future estimated cash flows, credit loss expectations are adjusted as necessary. The adjustments are based, in part, on actual loss severities recognized for each loan type, as well as changes in the probability of default. For periods in which estimated cash flows are not reforecasted, the prior reporting period’s estimated cash flows are adjusted to reflect the actual cash received and credit events that transpired during the current reporting period.

Increases in expected cash flows of PCI loans subsequent to the Acquisition Date are recognized prospectively through adjustments of the yield on the loans or pools over their remaining lives, while decreases in expected cash flows are recognized as impairment through a provision for loan losses and an increase in the allowance.

~~The PCI loans are accounted for in accordance with ASC Topic 310-30,~~~~Loans and Debt Securities Purchased with Deteriorated Credit Quality~~~~. At September 30, 2016, the net recorded carrying amount of loans accounted for under ASC 310-30 was $1.0 million and the contractual amount due was $1.2 million.~~

~~Below is the composition of the net book value for the PCI loans accounted for under ASC 310-30 at September 30, 2016~~~~(in thousands)~~:

~~FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)

This table provides a summary of loan classes and an aging of past due loans at ~~September 30, 2016~~March 31, 2017 and December 31, ~~2015~~2016~~(in~~ (in thousands):


	September 30, 2016														March 31, 2017
	30-89 Days Past Due and Accruing		Greater than 90 Days Past Due and Accruing		Non- Accrual Loans		Total Past Due		PCI Loans		Current		Total Loans		30-89 Days Past Due and Accruing		Greater than 90 Days Past Due and Accruing		Non- Accrual Loans		Total Past Due		Current		Total Loans
Loans
Commercial:
Commercial	$	8,665	$	24	$	51,880	$	60,569	$	—	$	4,378,010	$	4,438,579	$	15,034	$	814	$	35,110	$	50,958	$	4,505,403	$	4,556,361
Asset-based		—		—		—		—		—		236,566		236,566		—		—		—		—		230,863		230,863
Factoring		—		—		—		—		—		107,762		107,762		—		—		—		—		158,673		158,673
Commercial – credit card		201		306		19		526		—		164,908		165,434		452		307		5		764		154,327		155,091
Real estate:
Real estate – construction		1,723		—		225		1,948		—		680,757		682,705
Real estate –construction																118		—		93		211		849,421		849,632
Real estate – commercial		1,384		—		19,132		20,516		—		2,990,053		3,010,569		1,652		70		15,755		17,477		3,127,847		3,145,324
Real estate – residential		1,006		—		869		1,875		—		509,257		511,132		471		—		1,321		1,792		577,201		578,993
Real estate – HELOC		643		—		4,336		4,979		—		716,868		721,847		625		—		3,873		4,498		683,909		688,407
Consumer:
Consumer – credit card		1,967		2,005		434		4,406		—		258,345		262,751		2,046		2,154		404		4,604		242,325		246,929
Consumer – other		11,602		343		2,725		14,670		1,035		108,915		124,620		379		48		33		460		107,820		108,280
Leases		—		—		—		—		—		31,529		31,529		—		—		—		—		38,683		38,683

Total loans	$	27,191	$	2,678	$	79,620	$	109,489	$	1,035	$	10,182,970	$	10,293,494	$	20,777	$	3,393	$	56,594	$	80,764	$	10,676,472	$	10,757,236


	September 30, 2016								December 31, 2016
	30-89 Days Past Due		Greater than 90 Days Past Due		Current		Total Loans		30-89 Days Past Due and Accruing		Greater than 90 Days Past Due and Accruing		Non- Accrual Loans		Total Past Due		PCI Loans		Current		Total Loans
PCI Loans
Loans
Commercial:
Commercial	$	—	$	—	$	—	$	—	$	3,285	$	49	$	35,777	$	39,111	$	—	$	4,371,695	$	4,410,806
Asset-based		—		—		—		—		—		—		—		—		—		225,878		225,878
Factoring		—		—		—		—		—		—		—		—		—		139,902		139,902
Commercial – credit card		—		—		—		—		612		10		8		630		—		146,105		146,735
Real estate:
Real estate – construction		—		—		—		—
Real estate –construction										3		—		181		184		—		741,620		741,804
Real estate – commercial		—		—		—		—		1,303		1,004		16,423		18,730				3,147,192		3,165,922
Real estate – residential		—		—		—		—		1,034		6		1,344		2,384		—		545,966		548,350
Real estate – HELOC		—		—		—		—		588		—		4,736		5,324		—		706,470		711,794
Consumer:
Consumer – credit card		—		—		—		—		2,228		2,115		475		4,818		—		265,280		270,098
Consumer – other		42		3		990		1,035		1,061		181		11,315		12,557		800		126,205		139,562
Leases		—		—		—		—		—		—		—		—		—		39,532		39,532

Total PCI loans	$	42	$	3	$	990	$	1,035
Total loans									$	10,114	$	3,365	$	70,259	$	83,738	$	800	$	10,455,845	$	10,540,383

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)

~~FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,~~The Company had total purchased credit impaired (PCI) loans from its acquisition of Marquette Financial Companies (Marquette) of $800 thousand as of December 31, 2016, ~~(UNAUDITED)~~

all of which were considered to be performing based on payment activity as of December 31, 2016. Of this amount, $713 thousand were current with their payment terms and $87 thousand were between30-89 days past due.

The Company sold residential real estate loans with proceeds of ~~$61.7~~$14.5 million and ~~$79.7~~$10.3 million in the secondary market without recourse during the ~~nine months~~periods ended ~~September 30,~~March 31, 2017 and March 31, 2016, ~~and September 30, 2015,~~ respectively.

The Company has ceased the recognition of interest on loans with a carrying value of ~~$79.6~~$56.6 million and ~~$61.2~~$70.3 million at ~~September 30, 2016~~March 31, 2017 and December 31, ~~2015,~~2016, respectively. Restructured loans totaled ~~$54.4~~$54.1 million and ~~$36.6~~$52.5 million at ~~September 30, 2016~~March 31, 2017 and December 31, ~~2015, respectively.~~2016. Loans 90 days past due and still accruing interest amounted ~~to $2.7 million and $7.3~~$3.4 million at ~~September 30, 2016~~both March 31, 2017 and December 31, ~~2015, respectively.~~2016. There was an insignificant amount of interest recognized on impaired loans during ~~2016~~2017 and ~~2015.~~2016.

As part of theon-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. The loan rankings are summarized into the following categories:Non-watch list, Watch, Special Mention, and Substandard. Any loan not classified in one of the categories described below is considered to be aNon-watch list loan. A description of the general characteristics of the loan ranking categories is as follows:

All other classes of loans are generally evaluated and monitored based on payment activity.Non-performing loans include restructured loans onnon-accrual and all othernon-accrual loans.

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)

This table provides an analysis of the credit risk profile of each loan class excluded from ASC 310-30 at ~~September 30, 2016~~March 31, 2017 and December 31, ~~2015~~2016 (in thousands):


	Real estate – construction				Real estate – commercial				Real estate – construction				Real estate – commercial
	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015		March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016
Non-watch list	$	677,305	$	415,258	$	2,892,722	$	2,561,401	$	845,080	$	741,022	$	3,048,240	$	3,071,804
Watch		284		370		49,945		51,774		4,002		149		51,424		43,015
Special Mention		—		—		7,144		22,544		—		—		6,305		5,140
Substandard		5,116		940		60,758		25,998		550		633		39,355		45,963

Total	$	682,705	$	416,568	$	3,010,569	$	2,661,717	$	849,632	$	741,804	$	3,145,324	$	3,165,922


	Commercial – credit card				Real estate – residential				Real estate – HELOC				Commercial – credit card				Real estate – residential				Real estate – HELOC
	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015		March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016
Performing	$	165,415	$	125,348	$	510,263	$	491,427	$	717,511	$	726,439	$	155,086	$	146,727	$	577,672	$	547,006	$	684,534	$	707,058
Non-performing		19		13		869		800		4,336		3,524		5		8		1,321		1,344		3,873		4,736

Total	$	165,434	$	125,361	$	511,132	$	492,227	$	721,847	$	729,963	$	155,091	$	146,735	$	578,993	$	548,350	$	688,407	$	711,794


	Consumer – credit card				Consumer – other				Leases				Consumer – credit card				Consumer – other				Leases
	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015		March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016
Performing	$	262,317	$	291,102	$	120,860	$	152,180	$	31,529	$	41,857	$	246,525	$	269,623	$	108,247	$	127,447	$	38,683	$	39,532
Non-performing		434		468		2,725		2,597		—		—		404		475		33		11,315		—		—

Total	$	262,751	$	291,570	$	123,585	$	154,777	$	31,529	$	41,857	$	246,929	$	270,098	$	108,280	$	138,762	$	38,683	$	39,532

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)

~~This table provides an analysis of the credit risk profile of each loan class accounted for under ASC 310-30 at September 30, 2016 and December 31, 2015 (in thousands):~~

The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s judgment of inherent probable losses within the Company’s loan portfolio as of the balance sheet date. The allowance is necessary to reserve for estimated loan losses and risks inherent in the loan portfolio. Accordingly, the methodology is based on historical loss trends. The Company’s process for determining the appropriate level of the allowance for loan losses is designed to account for credit deterioration as it occurs. The provision for probable loan losses reflects loan quality trends, including the levels of and trends related tonon-accrual loans, past due loans, potential problem loans, criticized loans and net charge-offs or recoveries, among other factors.

The level of the allowance reflects management’s continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic, political and regulatory conditions and estimated losses inherent in the current loan portfolio. Portions of the allowance may be allocated for specific loans; however, the entire allowance is available for any loan that, in management’s judgment, should be charged off. While management utilizes its best judgment and information available, ~~at the time,~~ the adequacy of the allowance is dependent upon a variety of factors beyond the Company’s control, including, among other things, the performance of the Company’s loan portfolio, the economy, changes in interest rates and changes in the regulatory environment.

The Company’s allowance for loan losses consists of specific valuation allowances and general valuation allowances based on historical loan loss experience for similar loans with similar characteristics and trends, general economic conditions and other qualitative risk factors both internal and external to the Company.

The allowances established for probable losses on specific loans are based on a regular analysis and evaluation of impaired loans. Loans are classified based on an internal risk grading process that evaluates the obligor’s ability to repay, the underlying collateral, if any, and the economic environment and industry in which the

borrower operates. When a loan is considered impaired, the loan is analyzed to determine the need, if any, to specifically allocate a portion of the allowance for loan losses to the loan. Specific valuation allowances are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk ranking of the loan and economic conditions affecting the borrower’s industry.

General valuation allowances are calculated based on the historical loss experience of specific types of loans including an evaluation of the time span and volume of the actualcharge-off. The Company calculates historical loss ratios for pools of similar loans with similar characteristics based on the proportion of actual charge-offs experienced to the total population of loans in the pool. The historical loss ratios are updated based on actualcharge-off experience. A valuation allowance is established for each pool of similar loans based upon the product of the historical loss ratio, time span tocharge-off, and the total dollar amount of the loans in the pool. The Company’s pools of similar loans include similarly risk-graded groups of commercial loans, commercial real estate loans, commercial credit card, home equity loans, consumer real estate loans and consumer and other loans. The Company also considers a loan migration analysis for criticized loans. This analysis includes an assessment of the probability that a loan will move to a loss position based on its risk rating. The consumer credit card pool is evaluated based on delinquencies and credit scores. In addition, a portion of the allowance is determined by a review of qualitative factors by ~~management.~~Management.

Generally, the unsecured portion of a commercial or commercial real estate loan is charged off when, after analyzing the borrower’s financial condition, it is determined that the borrower is incapable of servicing the debt, little or no prospect for near term improvement exists, and no realistic and significant strengthening action is pending. For collateral dependent commercial or commercial real estate loans, an analysis is completed regarding the Company’s collateral position to determine if the amounts due from the borrower are in excess of the calculated current fair value of the collateral. Specific allocations of the allowance for loan losses are made for any collateral deficiency. If a collateral deficiency is ultimately deemed to be uncollectible, the amount is charged off. Revolving commercial loans (such as commercial credit cards) which are past due 90 cumulative days are classified as a loss and charged off.

Generally, a consumer loan, or a portion thereof, is charged off in accordance with regulatory guidelines which provide that such loans be charged off when the Company becomes aware of the loss, such as from a triggering event that may include, but is not limited to, new information about a borrower’s intent and ability to repay the loan, bankruptcy, fraud, or death. However, the charge-off timeframe should not exceed the specified delinquency time frames, which state that closed-end retail loans (such as real estate mortgages, home equity loans and consumer installment loans) that become past due 120 cumulative days and open-end retail loans (such as home equity lines of credit and consumer credit cards) that become past due 180 cumulative days are classified as a loss and charged off.

~~UMB FINANCIAL CORPORATION~~ALLOWANCE FOR LOAN LOSSES AND RECORDED INVESTMENT IN LOANS

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS –~~This table provides arollforward of the allowance for loan losses by portfolio segment for three months ended March 31, 2017~~(CONTINUED)~~ (in

This table provides a ~~roll forward~~rollforward of the allowance for loan losses by portfolio segment for ~~the~~ three ~~and nine~~ months ended ~~September 30,~~March 31, 2016 (in thousands):


	Three Months Ended September 30, 2016
	Commercial			Real estate			Consumer			Leases			Total
Allowance for loan losses:
Beginning balance	$	64,561		$	10,683		$	9,319		$	103		$	84,666
Charge-offs		(5,667	)		(142	)		(2,335	)		—			(8,144	)
Recoveries		129			209			544			—			882
Provision		4,844			6,280			1,888			(12	)		13,000

Ending balance	$	63,867		$	17,030		$	9,416		$	91		$	90,404


	Nine Months Ended September 30, 2016															Three Months Ended March 31, 2016
	Commercial			Real estate			Consumer			Leases			Total			Commercial			Real estate			Consumer			Leases			Total
Allowance for loan losses:
Beginning balance	$	63,847		$	8,220		$	8,949		$	127		$	81,143		$	63,847		$	8,220		$	8,949		$	127		$	81,143
Charge-offs		(11,542	)		(2,938	)		(6,951	)		—			(21,431	)		(5,075	)		(1,445	)		(2,515	)		—			(9,035	)
Recoveries		3,477			540			1,675			—			5,692			2,489			144			657			—			3,290
Provision		8,085			11,208			5,743			(36	)		25,000			47			2,990			1,969			(6	)		5,000

Ending balance	$	63,867		$	17,030		$	9,416		$	91		$	90,404		$	61,308		$	9,909		$	9,060		$	121		$	80,398

Ending balance: individually evaluated for impairment	$	1,759		$	4,726		$	—		$	—		$	6,485		$	4,163		$	1,210		$	—		$	—		$	5,373
Ending balance: collectively evaluated for impairment		62,108			12,304			9,416			91			83,919			57,145			8,699			9,060			121			75,025
Loans:
Ending balance: loans	$	4,948,341		$	4,926,253		$	387,371		$	31,529		$	10,293,494		$	4,794,302		$	4,474,762		$	387,529		$	43,038		$	9,699,631
Ending balance: individually evaluated for impairment		80,769			16,122			2,158			—			99,049			67,486			6,278			2,612			—			76,376
Ending balance: collectively evaluated for impairment		4,867,572			4,910,131			384,178			31,529			10,193,410			4,726,816			4,467,461			383,403			43,038			9,620,718
Ending balance: PCI Loans		—			—			1,035			—			1,035
Ending Balance: PCI Loans																	—			1,023			1,514			—			2,537

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)

This table provides ~~a roll forward~~an analysis of ~~the allowance for loan losses~~impaired loans by ~~portfolio segment for the three~~class at March 31, 2017 and ~~nine months ended September 30, 2015~~December 31, 2016 (in thousands):

~~This table provides an analysis of impaired loans by class at September 30, 2016 and December~~MARCH 31, ~~2015~~ ~~(in thousands):~~

A loan modification is considered a troubled debt restructuring (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 individually evaluated for impairment and evaluated as part of the allowance for loan loss as described above in the Allowance for Loan Losses section of this note.

Purchased loans restructured after acquisition are not considered or reported as troubled debt restructurings if the loans evidenced credit deterioration as of the Acquisition Date and are accounted for in pools. For the three and nine months ended September 30, 2016, no purchased loans were modified as troubled debt restructurings after the Acquisition Date.

The Company had ~~$148~~$24 thousand and ~~$217~~$823 thousand in commitments to lend to borrowers with loan modifications classified as TDRs as of ~~September 30,~~March 31, 2017 and March 31, 2016, ~~and September 30, 2015,~~ respectively. The Company monitors loan payments on anon-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. ~~During~~

For the ~~nine month period~~three months ended ~~September 30, 2015,~~March 31, 2017, the Company had one commercial ~~real estate loan classified as a~~ TDR with a ~~payment default totaling $178 thousand. A specific valuation allowance~~pre- and post-modification loan balance of $7.2 million. For the three months ended March 31, 2016, the Company had two commercial TDRs with apre- and post-modification balance of $12.1 million.

Securities Available for ~~the full amount of this loan had previously been established within the Company’s allowance for loan losses, and this loan was charged off against the allowance for loan losses during that period.~~Sale

This table provides ~~a summary of loans restructured by class during the three~~detailed information about securities available for sale at March 31, 2017 and ~~nine months ended September 30,~~December 31, 2016(in thousands)::

~~This table provides a summary of loans restructured by class during the three and nine months ended September 30, 2015~~~~(in thousands)~~:

~~This table provides detailed information about securities available for sale at September 30, 2016 and December~~MARCH 31, ~~2015~~~~(in thousands):~~

The following table presents contractual maturity information for securities available for sale at ~~September 30, 2016~~March 31, 2017~~(in~~ (in thousands):


	Amortized		Fair		Amortized Cost		Fair Value
	Cost		Value		Amortized Cost		Fair Value
Due in 1 year or less	$	743,207	$	743,589	$	405,459	$	405,729
Due after 1 year through 5 years		1,065,114		1,078,518		1,138,224		1,142,747
Due after 5 years through 10 years		844,091		864,353		821,982		814,622
Due after 10 years		244,851		246,931		307,889		298,345

Total		2,897,263		2,933,391		2,673,554		2,661,443
Mortgage-backed securities		3,322,340		3,362,296		3,948,616		3,890,150

Total securities available for sale	$	6,219,603	$	6,295,687	$	6,622,170	$	6,551,593

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.

For the ~~nine~~three months ended ~~September 30, 2016,~~March 31, 2017, proceeds from the sales of securities available for sale were ~~$951.3~~$86.1 million compared to ~~$782.8~~$282.0 million for the same period in ~~2015.~~2016. Securities transactions resulted in gross realized gains of ~~$8.5~~$0.5 million and ~~$8.5~~$2.9 million for the ~~nine~~three months ended ~~September 30, 2016~~March 31, 2017 and ~~2015, respectively. The~~2016. There were no gross realized losses for the ~~nine~~three months ended ~~September 30, 2016~~March 31, 2017 and ~~2015 were $1 thousand and $48 thousand, respectively.~~2016.

Securities available for sale with a ~~market~~fair value of ~~$5.1~~$5.5 billion at ~~September 30, 2016~~March 31, 2017 and ~~$5.9~~$5.7 billion at December 31, ~~2015~~2016 were pledged to secure U.S. Government deposits, other public deposits and certain trust deposits ~~derivative transactions, and repurchase agreements.~~as required by law. Of this amount, securities with a market value of ~~$1.4~~$1.7 billion at ~~September 30, 2016~~March 31, 2017 and ~~$1.6~~$1.8 billion at December 31, ~~2015~~2016 were pledged at the Federal Reserve Discount Window but were unencumbered as of those dates.

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 ~~September 30, 2016~~March 31, 2017 and December 31, ~~2015~~2016 (in thousands):.


September 30, 2016	Less than 12 months					12 months or more					Total
March 31, 2017																Less than 12 months					12 months or more					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury	$	75,083	$	(226	)	$	—	$	—		$	75,083	$	(226	)	$	53,780	$	(1,404	)	$	—	$	—		$	53,780	$	(1,404	)
U.S. Agencies		62,425		(33	)		12,994		(18	)		75,419		(51	)		9,996		(2	)		9,997		(4	)		19,993		(6	)
Mortgage-backed		424,586		(1,395	)		291,636		(4,506	)		716,222		(5,901	)		2,784,982		(50,387	)		302,054		(14,503	)		3,087,036		(64,890	)
State and political subdivisions		427,223		(1,513	)		6,159		(33	)		433,382		(1,546	)		1,275,251		(22,148	)		22,322		(514	)		1,297,573		(22,662	)
Corporates		20,979		(21	)		30,539		(46	)		51,518		(67	)		48,675		(65	)		17,986		(25	)		66,661		(90	)

Total	$	1,010,296	$	(3,188	)	$	341,328	$	(4,603	)	$	1,351,624	$	(7,791	)
Total temporarily-impaired debt securities available for sale																$	4,172,684	$	(74,006	)	$	352,359	$	(15,046	)	$	4,525,043	$	(89,052	)

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)


December 31, 2015	Less than 12 months					12 months or more					Total
December 31, 2016																Less than 12 months					12 months or more					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury	$	344,556	$	(576	)	$	—	$	—		$	344,556	$	(576	)	$	48,678	$	(1,526	)	$	—	$	—		$	48,678	$	(1,526	)
U.S. Agencies		615,993		(1,032	)		—		—			615,993		(1,032	)		103,979		(34	)		9,989		(14	)		113,968		(48	)
Mortgage-backed		2,056,316		(21,013	)		426,959		(17,076	)		2,483,275		(38,089	)		2,735,868		(55,035	)		269,637		(13,425	)		3,005,505		(68,460	)
State and political subdivisions		479,197		(1,316	)		60,324		(779	)		539,521		(2,095	)		1,748,922		(36,639	)		8,565		(150	)		1,757,487		(36,789	)
Corporates		29,126		(183	)		50,796		(480	)		79,922		(663	)		41,966		(90	)		17,982		(37	)		59,948		(127	)

Total	$	3,525,188	$	(24,120	)	$	538,079	$	(18,335	)	$	4,063,267	$	(42,455	)
Total temporarily-impaired debt securities available for sale																$	4,679,413	$	(93,324	)	$	306,173	$	(13,626	)	$	4,985,586	$	(106,950	)

The unrealized losses in the Company’s investments in U.S. treasury obligations, U.S. government agencies, Government Sponsored Entity (GSE) mortgage-backed securities, municipal securities, and corporates were caused by changes in interest rates. 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. The Company expects to recover its cost basis in the securities and does not consider these investments to be other-than-temporarily impaired at ~~September 30, 2016.~~March 31, 2017.

The following table ~~below provides detailed information for securities~~shows the Company’s held to maturity investments’ amortized cost, fair value, and gross unrealized gains and losses at ~~September 30, 2016~~March 31, 2017 and net unrealized gains, aggregated by maturity category, at December 31, ~~2015~~2016, respectively~~(in~~ (in thousands):

~~The following table presents contractual maturity information for securities held to maturity at September 30, 2016~~~~(in thousands):~~


	Amortized		Fair
	Cost		Value
March 31, 2017					Amortized Cost		Gross Unrealized Gains			Gross Unrealized Losses				Fair Value


State and political subdivisions:
Due in 1 year or less	$	17,219	$	18,735	$	5,590		$	2		$	(47	)		$	5,545
Due after 1 year through 5 years		83,572		90,932		95,548		1,964			(2,262	)			95,250
Due after 5 years through 10 years		565,141		614,912		316,425		3,606			(18,182	)			301,849
Due after 10 years		343,185		373,409		789,076		12,055			(89,612	)			711,519

Total securities held to maturity	$	1,009,117	$	1,097,988
Total state and political subdivisions					$	1,206,639	$	17,627		$	(110,103	)		$	1,114,163


December 31, 2016					Amortized Cost		Gross Unrealized Gains			Gross Unrealized Losses				Fair Value


State and political subdivisions:
Due in 1 year or less					$	6,077		$	5		$	(947	)		$	5,135
Due after 1 year through 5 years						82,650		2,376			(1,474	)			83,552
Due after 5 years through 10 years						341,741		8,854			(3,021	)			347,574
Due after 10 years						685,464		15,717			(31,415	)			669,766

Total state and political subdivisions					$	1,115,932	$	26,952		$	(36,857	)		$	1,106,027

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 no sales of securities held to maturity during the ~~nine~~three months ended ~~September 30, 2016~~March 31, 2017 or ~~2015.~~2016.

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)

There were no net unrealized gains or losses on trading securities at March 31, 2017. The net unrealized gains on trading securities at ~~September 30,~~March 31, 2016 ~~and September 30, 2015~~ were ~~$14~~$48 thousand ~~and $8 thousand, respectively,~~ and were included in trading and investment banking income on the ~~Consolidated Statements~~consolidated statements of ~~Income.~~income. In order to offset interest rate risk exposure within the trading portfolio, the Company has begun short selling U.S. Treasury and Corporate securities in which the Company enters into agreements to sell securities at a fixed price on a fixed date prior to purchasing the related securities. Securities sold not yet purchased totaled $22.8 million at March 31, 2017 and is classified within the Other liabilities line of the Company’s consolidated balance sheets.

The table below provides detailed information for Federal Reserve Bank (FRB) stock and Federal Home Loan Bank (FHLB) stock and other securities at ~~September 30, 2016~~March 31, 2017 and December 31, ~~2015~~2016(in thousands):


			Gross		Gross					Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
September 30, 2016
March 31, 2017
FRB and FHLB stock	$	33,397	$	—	$	—		$	33,397	$	33,262	$	—	$	—	$	33,262
Other securities – marketable		4		9,578		—			9,582		4		9,280		—		9,284
Other securities – non-marketable		23,185		700		(11	)		23,874		24,546		818		—		25,364

Total Other securities	$	56,586	$	10,278	$	(11	)	$	66,853	$	57,812	$	10,098	$	—	$	67,910

December 31, 2015
December 31, 2016
FRB and FHLB stock	$	33,215	$	—	$	—		$	33,215	$	33,262	$	—	$	—	$	33,262
Other securities – marketable		5		7,159		—			7,164		4		9,948		—		9,952
Other securities – non-marketable		23,855		964		—			24,819		24,272		820		—		25,092

Total Other securities	$	57,075	$	8,123	$	—		$	65,198	$	57,538	$	10,768	$	—	$	68,306

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. Other marketable andnon-marketable securities include Prairie Capital Management (PCM) alternative investments in hedge funds and private equity funds, which are accounted for as equity-method investments. The fair value of other marketable securities includes alternative investment securities of ~~$9.6~~$9.3 million at ~~September 30, 2016~~March 31, 2017 and ~~$7.2~~$10.0 million at December 31, ~~2015.~~2016. The fair value of othernon-marketable securities includes alternative investment securities of ~~$1.8~~$2.1 million at ~~September 30, 2016~~March 31, 2017 and $2.0 million at December 31, ~~2015.~~2016. Unrealized gains or losses on alternative investments are recognized in the Equity earnings ~~(loss)~~(losses) on alternative investments line of the Company’s Consolidated Statements of Income.

Changes in the carrying amount of goodwill for the periods ended ~~September 30, 2016~~March 31, 2017 and December 31, ~~2015~~2016 by reportable segment are as follows ~~(in~~(in thousands):

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)

~~The following table lists~~Following are the finite-lived intangible assets that continue to be subject to amortization as of ~~September 30, 2016~~March 31, 2017 and December 31, ~~2015~~2016 ~~(in~~(in thousands)::


	As of September 30, 2016						As of March 31, 2017
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible assets	$	47,527	$	38,218	$	9,309	$	47,527	$	39,857	$	7,670
Customer relationships		107,460		79,902		27,558		107,460		83,708		23,752
Other intangible assets		4,198		3,646		552		4,198		3,998		200

Total intangible assets	$	159,185	$	121,766	$	37,419	$	159,185	$	127,563	$	31,622


	As of December 31, 2015						As of December 31, 2016
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible assets	$	36,497	$	33,613	$	2,884	$	47,527	$	39,040	$	8,487
Core deposit intangible-Marquette acquisition		11,030		1,838		9,192
Customer relationships		104,560		73,496		31,064		107,460		81,832		25,628
Customer relationship-Marquette acquisition		2,900		338		2,562
Other intangible assets		3,247		2,841		406		4,198		3,822		376
Other intangible assets-Marquette acquisition		951		277		674

Total intangible assets	$	159,185	$	112,403	$	46,782	$	159,185	$	124,694	$	34,491

~~The following table has~~Following is the aggregate amortization expense recognized in each period~~(in~~ (in thousands)::

~~The following table lists estimated~~Estimated amortization expense of intangible assets inon future ~~periods~~years~~(in~~ (in thousands):

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 table below presents the remaining contractual maturities of repurchase agreements outstanding at ~~September 30, 2016,~~March 31, 2017, in addition to the various types of marketable securities that have been pledged as collateral for these borrowings(in thousands):.


							As of March 31, 2017
	As of September 30, 2016 Remaining Contractual Maturities of the Agreements						Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Over 90 Days		Total		Overnight & Continuous		Over 90 Days		Total
Repurchase agreements, secured by:
U.S. Treasury	$	176,297	$	—	$	176,297	$	6,129	$	—	$	6,129
U.S. Agencies		1,247,635		1,600		1,249,235		1,330,428		1,600		1,332,028

Total repurchase agreements	$	1,423,932	$	1,600	$	1,425,532	$	1,336,557	$	1,600	$	1,338,157

The Company has strategically aligned its operations into the following three reportable segments (collectively, the Business Segments): Bank, Institutional Investment Management, and Asset Servicing. Senior executive officers regularly evaluate business segment financial results produced by the Company’s internal management reporting system in deciding how to allocate resources and assess performance for individual Business Segments. Previously, the Company had the following four Business Segments: Bank, Institutional Investment Management, Asset Servicing, and Payment Solutions. In the first quarter of 2016, the Company merged the Payments Solutions segment into the Bank segment to better reflect how the core businesses, products and services are being evaluated by management currently. The Company’s ~~Payment Solutions leadership structure and financial performance assessments are now included in the Bank segment, and accordingly, the~~ reportable segments ~~were realigned to reflect these changes.~~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 ~~September 30, 2016.~~March 31, 2017. 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:

The Bankprovides a full range of banking services to commercial, retail, government and correspondent bank customers through the Company’s branches, call center, internet banking, and ATM network. ~~Services include~~Servicesinclude traditional commercial and consumer banking, treasury management, leasing, foreign exchange, consumer and commercial credit and debit card, prepaid debit card solutions, healthcare services, institutional cash management, merchant bankcard, wealth management, brokerage, insurance, capital markets, investment banking, corporate trust, and correspondent banking.

Institutional Investment Management provides equity and fixed income investment strategies in the intermediary and institutional markets via mutual funds, traditional separate accounts andsub-advisory relationships.

Asset Servicing provides services to the asset management industry, supporting a range of investment products, including mutual funds, alternative investments and managed accounts. Services include fund administration, fund accounting, investor services, transfer agency, distribution, marketing, custody, alternative investment services, and collective and multiple-series trust services.

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)


	Nine Months Ended September 30, 2015								Three Months Ended March 31, 2016
	Bank		Institutional Investment Management		Asset Servicing		Total		Bank		Institutional Investment Management		Asset Servicing		Total
Net interest income	$	294,210	$	27	$	3,376	$	297,613	$	115,271	$	—	$	2,621	$	117,892
Provision for loan losses		10,500		—		—		10,500		5,000		—		—		5,000
Noninterest income		210,695		74,182		68,978		353,855		75,417		18,425		22,508		116,350
Noninterest expense		407,997		52,799		60,860		521,656		142,967		17,266		20,211		180,444

Income before taxes		86,408		21,410		11,494		119,312		42,721		1,159		4,918		48,798
Income tax expense		23,859		5,899		3,124		32,882		10,855		287		1,253		12,395

Net income	$	62,549	$	15,511	$	8,370	$	86,430	$	31,866	$	872	$	3,665	$	36,403

Average assets	$	16,419,000	$	71,000	$	970,000	$	17,460,000	$	17,885,000	$	63,000	$	1,387,000	$	19,335,000

As previously disclosed, on May 31, 2015, the Company acquired 100% of the outstanding common shares of Marquette. Marquette was a privately held financial services company with a portfolio of businesses that operated thirteen branches in Arizona and Texas, two national commercial specialty-lending businesses focused on asset-based lending and accounts receivable factoring, and an asset-management firm. As a result of the acquisition, the Company increased its presence in Arizona and Texas and supplemented the Company’s commercial-banking services with factoring and asset-based lending businesses. As of the close of trading on the Acquisition Date, the beneficial owners of Marquette received 9.2295 shares of the Company’s common stock for each share of Marquette common stock owned at that date (approximately 3.47 million shares total). The market value of the shares of the Company’s common stock issued at the effective time of the merger was approximately $179.7 million, based on the Company’s closing stock price of $51.79 on May 29, 2015. The transaction was accounted for using the acquisition method of accounting in accordance with FASB ASC Topic 805,~~Business Combinations~~~~. Accordingly, the purchase price was allocated based on the estimated fair market values of the assets and liabilities acquired.~~

~~The following table summarizes the net assets acquired (at fair value) and consideration transferred for Marquette~~~~(in thousands, except for per share data)~~:

In the acquisition, the Company purchased $980.4 million of loans at fair value. All non-performing loans and select other classified loan relationships considered by management to be credit impaired are accounted for pursuant to ASC Topic 310-30, as previously discussed within Note 4, “Loans and Allowance for Loan Losses.”

The Company assumed long-term debt obligations of Marquette with an aggregate balance of $103.1 million and an aggregate fair value of $65.5 million as of the Acquisition Date payable to four unconsolidated trusts (Marquette Capital Trust I, Marquette Capital Trust II, Marquette Capital Trust III, and Marquette Capital Trust IV) that have issued trust preferred securities. Interest rates on trust preferred securities trusts are tied to the three-month London Interbank Offered Rate (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.

The amount of goodwill arising from the acquisition reflects the Company’s increased market share and related synergies that are expected to result from combining the operations of UMB and Marquette. All of the goodwill was assigned to the Bank segment. In accordance with ASC 350,~~Intangibles-Goodwill and Other~~, goodwill will not be amortized but will be subject to at least an annual impairment test. As the Company acquired tax deductible goodwill in excess of the amount reported in the consolidated financial statements, the goodwill is expected to be deductible for tax purposes. The fair value of the acquired identifiable intangible assets of $14.9 million is comprised of a core deposit intangible of $11.0 million, customer lists of $2.9 million and non-compete agreements of $1.0 million.

The results of operations of Marquette are included in the results of operations of the Company subsequent to the Acquisition Date. For the nine months ended September 30, 2016, acquisition expenses recognized in Noninterest expense in the Company’s Consolidated Statements of Income totaled $4.5 million. This total included $880 thousand of severance in Salaries and employee benefits and $1.7 million in Legal and consulting fees.

In the normal course of business, the Company is party to financial instruments withoff-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, futures contracts, forward foreign exchange contracts and spot foreign exchange contracts. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheet. The ~~contractual~~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;~~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 counterparty 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~~on-balance-sheet instruments.

The following table summarizes the Company’soff-balance sheet financial instruments.


	September 30,		December 31,
	2016		2015		March 31, 2017		December 31, 2016
Commitments to extend credit for loans (excluding credit card loans)	$	6,517,542	$	6,671,794	$	6,255,921	$	6,471,404
Commitments to extend credit under credit card loans		2,735,487		2,986,581		2,865,533		2,798,433
Commercial letters of credit		1,393		11,541		3,990		1,098
Standby letters of credit		381,284		360,468		334,269		376,617
Forward contracts		64,012		75,611		51,188		49,352
Spot foreign exchange contracts		4,145		10,391		3,309		3,725

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~~values 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 certain fixed rate assets and liabilities. 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 March 31, 2017 and December 31, 2016. The Company’s derivative asset and derivative liability are located within Other assets and Other liabilities, respectively, on the Company’s Consolidated Balance Sheets.

This table provides a summary of the fair value of the Company’s derivative assets and liabilities as of March 31, 2017 and December 31, 2016 (in thousands):

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)

The Company’s derivative assets and derivative liabilities are located within Other assets and Other liabilities, respectively, on the Company’s Consolidated Balance Sheets. This table provides a summary of the fair value of the Company’s derivative assets and liabilities as of September 30, 2016 and December 31, 2015~~(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 either making fixed rate payments to a counterparty in exchange for the Company receiving variable rate payments, or making variable rate payments to a counterparty in exchange for the Company receiving fixed rate payments, over the life of the agreements without the exchange of the underlying notional amount. As of ~~September 30, 2016,~~March 31, 2017, the Company had two interest rate swaps with a notional amount of ~~$15.8~~$15.7 million that were designated as fair value hedges of interest rate risk associated with the Company’s fixed rate loan assets and brokered time deposits.

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 earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related derivatives.

The Company is exposed to changes in the fair value of certain of its variable-rate liabilities due to changes in the benchmark interest rate, LIBOR. 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 ~~September 30, 2016,~~March 31, 2017, the Company had two interest rate swaps with a notional amount of $51.5 million 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. For derivatives designated and that qualify as cash flow hedges, the effective portion of changes in fair value is recorded in accumulated other comprehensive income (AOCI) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly into earnings ~~for the~~ gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged ~~risk.~~risk are recognized in earnings. During the three ~~and nine~~ months ended ~~September 30, 2016,~~March 31, 2017, the Company recognized net ~~losses~~gains of ~~$643~~$246 thousand ~~and $7.7 million, respectively,~~ in AOCI for the effective portion of the change in fair value of these cash flow hedges. During the three ~~and nine~~ months ended ~~September 30, 2016,~~March 31, 2017, the Company did not record any hedge ineffectiveness in earnings. Amounts reported in AOCI related to derivatives will be reclassified to Interest expense as interest payments are received or paid on the Company’s derivatives. The Company does not expect to reclassify any amounts from AOCI to Interest expense during the next 12 months as the Company’s derivatives are effective after December 2018. As of ~~September 30, 2016,~~March 31, 2017, the Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of 2019.5 years.

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS –~~Non-designated Hedges~~(CONTINUED)~~

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.~~customers which the Company implemented in 2010. 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 ~~September 30, 2016,~~March 31, 2017, the Company had 5058 interest rate swaps with an aggregate notional amount of ~~$595.8~~$758.1 million related to this program. During the three ~~and nine~~ months ended ~~September 30,~~March 31, 2017 and 2016, the Company recognized ~~$76~~net losses of $348 thousand and ~~$868~~$352 thousand, of net losses, respectively, related to changes in fair value of these swaps. During the three and nine months ended September 30, 2015, the Company recognized $125 thousand and $211 thousand of net losses, respectively, related to changes in the fair value of these swaps.

Effect of Derivative Instruments on the Consolidated Statements of Income and Consolidated Statements of 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 related to the Company’s derivative assets and liabilities ~~for the three~~as of March 31, 2017 and ~~nine months ended September 30,~~March 31, 2016 ~~and September 30, 2015~~(in thousands)::


	Amount of Gain (Loss) Recognized
	For the Three Months Ended						For the Nine Months Ended						Amount of Gain (Loss) Recognized For the Three Months Ended March 31,
	September 30, 2016			September 30, 2015			September 30, 2016			September 30, 2015			2017			2016
Interest Rate Products
Derivatives not designated as hedging instruments	$	(76	)	$	(125	)	$	(868	)	$	(211	)	$	(348	)	$	(352	)

Total	$	(76	)	$	(125	)	$	(868	)	$	(211	)	$	(348	)	$	(352	)

Interest Rate Products
Derivatives designated as hedging instruments:
Derivatives designated as hedging instruments
Fair value adjustments on derivatives	$	(64	)	$	(178	)	$	(395	)	$	(172	)	$	(46	)	$	(193	)
Fair value adjustments on hedged items		63			177			392			173			46			192

Total	$	(1	)	$	(1	)	$	(3	)	$	1		$	—		$	(1	)

This table provides a summary of the amount of gain or loss recognized in AOCI in the Consolidated Statements of Comprehensive Income related to the Company’s derivative assets and liabilities as of ~~September 30,~~March 31, 2017 and March 31, 2016 ~~and September 30, 2015~~(in thousands)::

The Company has agreements with certain of its derivative counterparties that contain a provision ~~that~~where 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 ~~September 30, 2016,~~March 31, 2017 the termination value of derivatives is in a net liability position, which includes accrued interest, related to these agreements was ~~$31.1~~$7.8 million. The Company has minimum collateral posting thresholds with certain of its derivative counterparties ~~and~~but has not yet reached its minimum collateral posting threshold under these agreements. If the Company had ~~breached~~had a default of indebtedness under any of these provisions at ~~September 30, 2016,~~March 31, 2017, 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 measured at fair value on a recurring basis as of ~~September 30, 2016,~~March 31, 2017, 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 ~~September 30, 2016 and~~March 31, 2017and December 31, ~~2015~~2016 ~~(in~~(in thousands):


	Fair Value Measurement at September 30, 2016								Fair Value Measurement As of March 31, 2017
Description	September 30, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		March 31, 2017		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	$	400	$	400	$	—	$	—	$	1,807	$	1,807	$	—	$	—
U.S. Agencies		2,349		—		2,349		—		4,298		—		4,298		—
Mortgage-backed		7,068		—		7,068		—
Mortgage- backed										10,227		—		10,227		—
State and political subdivisions		18,645		—		18,645		—		25,031		—		25,031		—
Corporates										2,535		2,535		—		—
Trading - other		29,600		29,161		439		—		31,596		30,124		1,472		—

Trading securities		58,062		29,561		28,501		—		75,494		34,466		41,028		—

U.S. Treasury		249,526		249,526		—		—		63,694		63,694
U.S. Agencies		289,440		—		289,440		—		82,123		—		82,123		—
Mortgage-backed		3,362,296		—		3,362,296		—		3,890,150		—		3,890,150		—
State and political subdivisions		2,327,220		—		2,327,220		—		2,448,965		—		2,448,965		—
Corporates		67,205		67,205				—		66,661		66,661		—		—

Available for sale securities		6,295,687		316,731		5,978,956		—		6,551,593		130,355		6,421,238		—
Company-owned life insurance		40,274		—		40,274		—		43,251		—		43,251		—
Bank-owned life insurance		208,095		—		208,095		—		211,230		—		211,230		—
Derivatives		21,925		—		21,925		—		10,039		—		10,039		—

Total	$	6,624,043	$	346,292	$	6,277,751	$	—	$	6,891,607	$	164,821	$	6,726,786	$	—

Liabilities
Deferred compensation	$	40,804	$	40,804	$	—	$	—	$	53,111	$	53,111	$	—	$	—
Derivatives		30,821		—		30,821		—		5,574		—		5,574		—
Securities sold not yet purchased										22,840		—		22,840		—

Total	$	71,625	$	40,804	$	30,821	$	—	$	81,525	$	53,111	$	28,414	$	—

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)

~~The following table reconciles the beginning and ending balances of the contingent consideration liability for the nine months ended September 30, 2016 and 2015 (~~~~in thousands~~):

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

Trading SecuritiesFair 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 SaleFair 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.

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

Bank-owned Life InsuranceFair 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.

Deferred CompensationFair values are based on quoted market ~~prices.~~prices or dealer quotes.

~~Contingent Consideration~~Securities sold not yet purchased~~The~~Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value ~~of contingent consideration liabilities~~is estimated using quoted market prices for similar securities. Prices are ~~derived from a discounted cash flow model of future contingent payments. The valuation of these liabilities~~provided by third-party pricing services and are ~~estimated by a collaborative effort of the Company’s mergers and acquisitions group, business unit management, and the corporate accounting group. These future contingent payments are calculated~~ based on ~~estimates~~observable market inputs.

Assets measured at fair value on anon-recurring basis as of ~~future income~~March 31, 2017 and expense from each acquisition. These estimated cash flows are projected by the business unit management and reviewed by the mergers and acquisitions group. To obtain a current valuation of these projected cash flows, an expected present value technique is utilized to calculate a discount rate. The cash flow projections and discount rates are reviewed quarterly and updated as market conditions necessitate. Potential valuation adjustments are made as future income and expense projections for each acquisition are made which affect the calculation of the related contingent consideration payment. These adjustments are recorded through noninterest expense.December 31, 2016(in thousands):

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)

~~Assets measured at fair value on a non-recurring basis as of September 30, 2016 and December 31, 2015~~ ~~(in thousands):~~

Valuation methods for instruments measured at fair value on a nonrecurring basis

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

Impaired loansWhile the overall loan portfolio is not carried at fair value, adjustments are recorded on certain loans to reflect write-downs that are based on the external ~~appraised~~appraisal 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 ofnon-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 the impaired loans is reviewed on a quarterly basis. Because many of these inputs are not observable, the measurements are classified as Level 3.

Other real estate ownedOther real estate owned consists of loan collateral which has been repossessed through foreclosure. This collateral is comprised of commercial and residential real estate and othernon-real estate property, including auto, recreational and marine vehicles. Other real estate owned is recorded as held for sale initially at the lower of the loan balance or fair value of the collateral. The initial valuation of the foreclosed property is obtained through an appraisal process similar to the process described in the 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.

GoodwillValuation of goodwill to determine impairment is performed annually, or more frequently if there is an event or circumstance that would indicate impairment may have occurred. The process involves calculations to determine the fair value of each reporting unit on a stand-alone basis. A combination of formulas using current market multiples, based on recent sales of financial institutions within the Company’s geographic marketplace, is used to estimate the fair value of each reporting unit. That fair value is compared to the carrying amount of the reporting unit, including its recorded goodwill. Impairment is considered to have occurred if the fair value of the reporting unit is lower than the carrying amount of the reporting unit. The fair value of the Company’s common stock relative to its computed book value per share is also considered as part of the overall evaluation. These 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 ornon-recurring basis. The estimated fair value of the Company’s financial instruments at ~~September 30, 2016~~March 31, 2017 and December 31, ~~2015 are~~2016 were as follows~~(in millions)~~ (in thousands):


	Fair Value Measurement at September 30, 2016 Using										Fair Value Measurement at March 31, 2017 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	$	1,052.3	$	826.8	$	225.5	$	—	$	1,052.3	$	944,708	$	749,307	$	195,401	$	—	$	944,708
Securities available for sale		6,295.7		316.7		5,979.0		—		6,295.7		6,551,593		130,355		6,421,238		—		6,551,593
Securities held to maturity		1,009.1		—		1,098.0		—		1,098.0		1,206,639				1,114,163		—		1,114,163
Trading securities		58.1		29.6		28.5		—		58.1		75,494		34,466		41,028		—		75,494
Other securities		66.9		—		66.9		—		66.9		67,910				67,910		—		67,910
Loans (exclusive of allowance for loan loss)		10,305.4		—		10,426.9		—		10,426.9		10,759,170				10,790,779		—		10,790,779
Derivatives		21.9		—		21.9		—		21.9		10,039				10,039		—		10,039
FINANCIAL LIABILITIES
Demand and savings deposits		14,297.0		14,297.0		—		—		14,297.0		14,824,465		14,824,465				—		14,824,465
Time deposits		1,081.3		—		1,081.3		—		1,081.3		1,070,719				1,070,719		—		1,070,719
Other borrowings		2,021.1		595.6		1,425.5		—		2,021.1		2,390,364		1,052,207		1,338,157		—		2,390,364
Long-term debt		75.4		—		75.8		—		75.8		76,104				74,350		—		74,350
Derivatives		30.8		—		30.8		—		30.8		5,574				5,574		—		5,574
OFF-BALANCE SHEET ARRANGEMENTS
Commitments to extend credit for loans										4.2										1,879,215
Commercial letters of credit										0.2										31,636
Standby letters of credit										1.9										673,883

FOR THE THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30, 2016~~MARCH 31, 2017 (UNAUDITED)

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

Securities held to maturityFair value ofheld-to-maturity securities are estimated by discounting the expected future cash flows using current market rates.

Other securitiesAmount consists of FRB and FHLB stock held by the Company, PCM equity-method investments, and other miscellaneous investments. The ~~carrying amount~~fair value of ~~the~~ FRB and FHLB stock ~~equals its fair~~is considered to be the carrying value as no readily determinable market exists for these investments because ~~the shares~~they can only be redeemed bywith the FRB ~~and FHLB at their carrying amount.~~or FHLB. The fair value of PCM marketable equity-method investments are based on quoted market prices used to estimate the value of the underlying investment. Fornon-marketable equity-method investments, the Company’s proportionate share of the income or loss is recognized on aone-quarter lag based on the valuation of the underlying investment(s).

LoansFair 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 using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

Demand and savings depositsThe fair value of demand deposits and savings accounts is the amount payable on demand at ~~September 30, 2016~~March 31, 2017 and December 31, ~~2015.~~2016.

Time depositsThe 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 borrowingsThe 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.

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

Otheroff-balance sheet instrumentsThe 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 ~~year-end~~period-end are significant to the Company’s consolidated financial position.

On April 20, 2017, the Company announced the execution of an agreement to sell all of the outstanding stock of Scout Investments, Inc. (Scout), its institutional investment management subsidiary, for $172.5 million in cash, subject to customary purchase price adjustments at closing. This transaction is expected to be accretive to both income and capital. The Company plans to use the proceeds from the transaction for general corporate purposes and to support its continued organic growth in the commercial, consumer, private wealth, institutional banking, healthcare, and asset servicing businesses. See Items 1.01 and 5.02 in the Company’s Current Report on Form 8K that was filed April 20, 2017.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This ~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~review highlights the material changes in the results of operations and changes in financial condition ~~of the Company~~ for the ~~three-month and nine-month periods~~three month period ended ~~September 30, 2016.~~March 31, 2017. It should be read in conjunction with the accompanying consolidated financial statements, notes to consolidated financial statements and other financial ~~information~~statistics appearing elsewhere in this ~~Form 10-Q~~report and in the Company’s Form10-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 Securities and Exchange Commission (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 to the extent 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 Form10-K, Quarterly Report on Form10-Q, or Current Report on Form8-K.

The Company focuses on the following four core strategic objectives. Management believes these ~~strategies~~strategic objectives will guide ~~our~~its efforts to ~~achieve our~~achieving its vision, to ~~deliver the~~deliverthe unparalleled customer experience, all the while maintaining a focus to improve net income and strengthen the balance sheet.

The first strategic objective is a focus on improving operating efficiencies. ~~During the second half of 2015, an in-depth review of the organization was completed to identify efficiencies.~~ The Company ~~plans to continue to utilize the results of this review to~~has focused on identifying efficiencies that simplify our organizational and reporting structures, streamline back office functions and take advantage of synergies and newer technologies among various platforms and distribution networks. ~~The~~During 2015, the Company identified a total of $32.9 million in ~~annual~~annualized savings ~~that are expected~~related to ~~be realized in the future as a result of~~ the elimination of ~~certain~~ employee positions and business process improvements. ~~This total does not include~~At December 31, 2016, all but $3 million of these savings had been recognized, which decelerated the ~~additional cost~~growth rate of the Company’s operating expenses. The remaining savings ~~recognized related~~are expected to be phased in throughout 2017. In addition, the ~~Marquette integration, or any~~Company has identified and expects to continue identifying, ongoing efficiencies ~~identified~~ through ~~our~~the normal course of ~~business. The~~business that, when combined with increased revenue, will contribute to improved operating leverage. During the first quarter of 2017, total revenue increased 8.9 percent compared to the first quarter of 2016, while noninterest expense increased 4.6 percent. As part of this initiative, the Company continues to invest in technological advances that it believes will help management drive operating ~~efficiencies~~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 strategic objective is a focus on net interest income through profitable loan and deposit ~~growth.~~growth and the optimization of the balance sheet. During the ~~third~~first quarter of ~~2016,~~2017, the Company continued to make progress on this strategy as illustrated by an increase in net interest income of ~~$14.9~~$16.4 million, or ~~13.5~~13.9 percent, from the same period in ~~2015.~~2016. The Company has continued to show increased net interest income in a historically low ~~interest~~ rate environment through the effects of favorable loan repricing driven by recent rate increases, increased volume and mix of average earning assets, and a low cost of funds in its Consolidated Balance Sheets. Average earning assets ~~for the third quarter of 2016~~ increased ~~$1.5 billion,~~$849.8 million, or ~~9.1~~4.7 percent from ~~the same period in 2015.~~March 31, 2016. The funding for these assets was driven primarily by a ~~14.8~~7.4 percent increase in average interest-bearing liabilities. Average loan balances increased ~~$1.2~~$1.0 billion, or ~~14.0~~10.6 percent compared to the same period in ~~2015.~~2016. Net interest margin, on atax-equivalent basis, increased 1430 basis points compared to the same period in ~~2015.~~2016.

The third strategic objective is to grow the Company’s ~~fee-based businesses. As the industry continues to experience economic uncertainty, the~~revenue from noninterest sources. The Company has continued to emphasize its ~~fee-based operations. By maintaining a~~ diverse ~~source of revenues, the Company believes this~~operations throughout all economic cycles. This strategy ~~will help~~has provided revenue diversity, helped to reduce the ~~Company’s exposure to~~impact of sustained low interest ~~rates.~~rates and positioned the Company to benefit in periods of growth. During the ~~third~~first quarter of ~~2016,~~2017, noninterest income increased ~~$12.9~~$4.4 million, or ~~11.8~~3.8 percent, to ~~$121.9~~$120.8 million for the three months ended ~~September 30, 2016,~~March 31, 2017, compared to the same period in ~~2015.~~2016. This change is discussed in greater detail below under Noninterest Income. The Company continues to emphasize its asset management, brokerage, bankcard services, healthcare services, and treasury management businesses. At ~~September 30, 2016,~~March 31, 2017, noninterest income represented ~~49.4~~47.3 percent of total revenues, compared to ~~49.8~~49.7 percent at ~~September 30, 2015.~~March 31, 2016.

The fourth strategic objective is a focus on capital management. The Company places a significant emphasis on ~~maintaining~~the maintenance of 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 organic growth, new business ~~growth~~development, and acquisition opportunities. The Company continues to maximize shareholder value through a mix of reinvesting in organic growth, evaluating acquisition opportunities that complement the strategies, increasing dividends over time, and ~~properly~~appropriately utilizing a share repurchase program. At September 30, 2016, the Company had $2.0 billion in total shareholders’ equity. This is an increase of $123.8 million, or 6.5 percent, compared to total shareholders’ equity at September 30, 2015. At September 30, 2016,March 31, 2017, the Company had a total risk-based capital ratio of ~~12.82 percent.~~12.96 percent and $2.0 billion in total shareholders’ equity, an increase of $62.5 million, or 3.2 percent, compared to total shareholders’ equity at March 31, 2016. The Company repurchased ~~10,750~~52,689 shares of common stock at an average price of ~~$56.59~~$76.46 per share during the ~~third~~first quarter of ~~2016.~~2017.

~~The following is a summary regarding the Company’s earnings for the third quarter of 2016. The changes identified in the summary are explained in greater detail below.~~ The Company recorded consolidated net income of ~~$41.9~~$44.2 million for the ~~three-month~~three month period ended ~~September 30, 2016,~~March 31, 2017, compared to ~~$22.5~~$36.4 million for the same period a year earlier. This represents ~~an 86.8~~a 21.4 percent increase over the ~~three-month~~three month period ended ~~September 30, 2015.~~March 31, 2016. Basic earnings per share for the ~~third~~first quarter of ~~2016~~2017 were ~~$0.86~~$0.90 per share ($~~0.85~~0.89 per share fully-diluted) compared to ~~$0.46~~$0.75 per share ($~~0.46~~0.74 per share fully-diluted) for the ~~third~~first quarter of ~~2015.~~2016. Return on average assets and return on average common shareholders’ equity for the ~~three-month~~three month period ended ~~September 30, 2016~~March 31, 2017 were ~~0.85~~0.89 and ~~8.25~~9.04 percent, respectively, compared to ~~0.49~~0.76 and ~~4.72 percent, respectively, for the three-month period ended September 30, 2015.~~

The Company recorded consolidated net income of $115.9 million for the nine-month period ended September 30, 2016, compared to $86.4 million for the same period a year earlier. This represents a 34.1 percent increase over the nine-month period ended September 30, 2015. Basic earnings per share for the nine-month period ended September 30, 2016 were $2.37 per share ($2.36 per share fully-diluted) compared to $1.85 per share ($1.84 per share fully-diluted) for the same period in 2015. Return on average assets and return on average common shareholders’ equity for the nine-month period ended September 30, 2016 were 0.79 and 7.81 percent, respectively, compared to 0.66 and 6.537.54 percent for the ~~same~~three month period ~~in 2015.~~ended March 31, 2016.

Net interest income for the three ~~and nine-month periods~~month period ended ~~September 30, 2016~~March 31, 2017 increased ~~$14.9~~$16.4 million, or 13.5 percent, and $66.3 million, or 22.3 percent, respectively, compared to the same periods in 2015. For the three-month period ended September 30, 2016, average earning assets increased by $1.5 billion, or 9.1 percent, and for the nine-month period ended September 30, 2016, they increased by $2.0 billion, or 12.113.9 percent, compared to the same ~~periods~~period in ~~2015.~~2016. Average earning assets increased by $849.8 million, or 4.7 percent, compared to the first quarter of 2016. Net interest margin, on atax-equivalent basis, increased to ~~2.87~~3.09 percent ~~and 2.84 percent~~or a 30 basis point increase for the three ~~and nine-month periods~~months ended ~~September 30, 2016,~~March 31, 2017, compared to ~~2.73 percent and 2.60~~2.79 percent for the same ~~periods~~period in 2015. The Marquette acquisition added earning assets with an acquired value of $1.2 billion primarily from loan balances with an acquired value of $980.4 million at May 31, 2015. The Marquette acquisition also added interest-bearing liabilities with an acquired value of $910.8 million primarily from interest-bearing deposits of $708.7 million at May 31, 2015.2016.

The provision for loan losses increased by ~~$10.5 million to $13.0~~$4.0 million for the ~~three-month~~three month period ended ~~September 30, 2016, and increased by $14.5 million to $25.0 million for the nine-month period ended September 30, 2016,~~March 31, 2017, compared to the same ~~periods~~period in ~~2015.~~2016. This increase is a direct result of applying the Company’s methodology for computing the allowance for loan losses. A significant driver of credit quality is nonperforming loans. The Company’s nonperforming loans increased $29.7 million to $79.6 million at September 30, 2016, compared to September 30, 2015, and increased $18.5 million, compared to December 31, 2015. This increase was primarily related to the migration of two large commercial credits to nonaccrual during the third quarter of 2016. The allowance for loan losses as a percentage of total loans increased to ~~0.88~~0.87 percent as of ~~September 30, 2016,~~March 31, 2017, compared to ~~0.86 percent at September 30, 2015.~~0.83 as of March 31, 2016. For a description of the Company’s methodology for computing the allowance for loan losses, please see the summary discussion of the Allowance for Loan Losses within the Critical Accounting Policies and Estimates subsection of the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” insection on the Company’s Form10-K.

Noninterest income increased by ~~$12.9~~$4.4 million, or ~~11.8~~3.8 percent, for the ~~three-month~~three month period ended ~~September 30, 2016, and increased by $5.9 million, or 1.7 percent, for the nine-month period ended September 30, 2016,~~March 31, 2017, compared to the same ~~periods~~period in ~~2015.~~2016. This increase is primarily due to an increase in trading and investment banking income and other income, partially offset by a reduction of gains on sales of securities as compared to first quarter one year ago. These changes are discussed in greater detail below under Noninterest Income.

Noninterest expense ~~decreased by $5.5 million, or 3.0 percent, for the three-month period ended September 30, 2016, and~~ increased by ~~$23.9~~$8.3 million, or 4.6 percent, for the ~~nine-month~~three month period ended ~~September 30, 2016,~~March 31, 2017, compared to the same ~~periods~~period in ~~2015.~~2016. This increase was primarily driven by increases in salaries and employee benefits expense and equipment expense. These changes are discussed in greater detail below under Noninterest Expense.

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 rates paid on each affect net interest income. ~~As noted above, the impacts of the Marquette acquisition are included in these results.~~ For the ~~three-month~~three month period ended ~~September 30, 2016, average earning assets~~March 31, 2017, net interest income increased by ~~$1.5 billion,~~$16.4 million, or ~~9.1~~13.9 percent, ~~and for the nine-month period ended September 30, 2016, they increased by $2.0 billion, or 12.1 percent,~~as compared to the same ~~periods~~period in 2015. Net interest margin, on a tax-equivalent basis, increased to 2.87 percent and 2.84 percent for the three and nine-month periods ended September 30, 2016, compared to 2.73 percent and 2.60 percent for the same periods in 2015.2016.

Table 1 shows the impact of earning asset rate changes compared to changes in the cost of interest-bearing liabilities. As illustrated in this table, net interest spread and margin for the three months ended ~~September 30, 2016~~March 31, 2017 increased by ~~13 and 14~~25 basis points ~~respectively,~~and 30 basis points compared to the same period in ~~2015. Net interest spread and margin for the nine months ended September 30,~~ 2016, ~~increased by 23 and 24 basis points, respectively, compared to the same period in 2015.~~respectively. These ~~increases~~results are primarily due to a favorable volume and rate ~~variances~~variance on ~~loans. These rate variances have led to an increase in interest income~~earning assets, partially offset by an ~~increase in interest expense, resulting in~~unfavorable rate variance on interest-bearing liabilities. The combined impact of these variances has led to an increase in the Company’s net interest income ~~during 2016~~compared to results one year ago. While noninterest-bearing demand deposits remained relatively flat, as compared to ~~results for~~ the ~~same periods~~first quarter of 2016, the contribution from the improvement in ~~2015.~~yield ontax-equivalent earning assets of 38 basis points outperformed the impact of an increased cost of interest-bearing liabilities, resulting in a positive impact by increasing the contribution from free funds. For the impact of the contribution from free funds, see the Analysis of Net Interest Margin within Table 2 below. Table 2 also illustrates how the changes in volume and rates have resulted in ~~an increase~~the changes in net interest income.

AVERAGE BALANCES/YIELDS AND RATES ~~(tax-equivalent~~(tax-equivalent basis) (unaudited, dollars in thousands)

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. All average balances are daily average balances. The average yield on earning assets without the tax equivalent basis adjustment would have been ~~2.86~~3.11 percent for the ~~three-month~~three month period ended ~~September 30, 2016~~March 31, 2017 and ~~2.71~~2.77 percent for the same period in 2015. The average yield on earning assets without the tax equivalent basis adjustment would have been 2.83 percent for the nine-month period ended September 30, 2016 and 2.57 percent for the same period in 2015.2016.


	Nine Months Ended September 30,
	2016						2015						Three Months Ended March 31,
	Average			Average			Average			Average			2017						2016
	Balance			Yield/Rate			Balance			Yield/Rate			Average Balance			Average Yield/Rate			Average Balance			Average Yield/Rate
Assets
Loans, net of unearned interest	$	9,874,298			3.83	%	$	8,163,984			3.61	%	$	10,560,134			4.09	%	$	9,550,291			3.81	%
Securities:
Taxable		4,650,111			1.59			4,864,016			1.55			4,198,795			1.85			4,826,822			1.61
Tax-exempt		2,984,538			2.85			2,407,653			2.72			3,487,456			3.07			2,805,514			2.81

Total securities		7,634,649			2.08			7,271,669			1.94			7,686,251			2.40			7,632,336			2.05
Federal funds and resell agreements		181,854			1.42			62,326			0.81			238,201			1.56			146,791			1.39
Interest-bearing due from banks		425,155			0.56			665,667			0.35			309,125			0.72			648,635			0.55
Other earning assets		39,588			1.70			34,507			1.51			60,462			2.45			26,358			1.01

Total earning assets		18,155,544			2.99			16,198,153			2.71			18,854,173			3.31			18,004,411			2.93
Allowance for loan losses		(82,975	)					(77,560	)					(93,106	)					(80,820	)
Other assets		1,415,325						1,339,262						1,473,282						1,411,260

Total assets	$	19,487,894					$	17,459,855					$	20,234,349					$	19,334,851

Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	9,392,435			0.18	%	$	8,023,331			0.17	%	$	9,644,005			0.25	%	$	9,429,774			0.17	%
Federal funds and repurchase agreements		2,041,369			0.31			1,686,766			0.11			2,329,630			0.60			1,696,555			0.29
Borrowed funds		88,621			3.90			49,169			4.43			76,468			4.99			92,558			3.95

Total interest-bearing liabilities		11,522,425			0.23			9,759,266			0.18			12,050,103			0.35			11,218,887			0.22
Noninterest-bearing demand deposits		5,809,398						5,655,878						5,998,943						6,014,820
Other liabilities		174,873						274,845						202,248						159,883
Shareholders’ equity		1,981,198						1,769,866						1,983,055						1,941,261

Total liabilities and shareholders’ equity	$	19,487,894					$	17,459,855					$	20,234,349					$	19,334,851

Net interest spread					2.76	%					2.53	%					2.96	%					2.71	%
Net interest margin					2.84						2.60						3.09						2.79

Table 2 presents the dollar amount of change in net interest income and margin due to volume and rate. Table 2 also reflects the effect that interest-free funds have on net interest margin. ~~Although the~~The average balance of ~~interest-free~~interest free funds (total earning assets less interest-bearing liabilities) increased ~~$11.4~~$18.5 million for the ~~three-month period and $194.2 million for the nine-month~~three month period ended ~~September 30, 2016~~March 31, 2017 compared to the same ~~periods~~period in ~~2015,~~2016, resulting in an increase in the benefit from interest free funds ~~was relatively flat, or one~~of five basis ~~point in the three-month and nine-month periods due~~points to ~~increased yields on earning assets, offset by an increase in rates of interest-bearing liabilities.~~0.13 percent.

ANALYSIS OF CHANGES IN NET INTEREST INCOME AND MARGIN ~~(unaudited,~~(unaudited, dollars in thousands)


	Three Months Ended									Nine Months Ended									Three Months Ended
	September 30, 2016 and 2015									September 30, 2016 and 2015									March 31, 2017 and 2016
	Volume			Rate			Total			Volume			Rate			Total			Volume			Rate		Total
Change in interest earned on:
Loans	$	11,867		$	2,267		$	14,134		$	48,566		$	14,433		$	62,999		$	9,463		$	6,553	$	16,016
Securities:
Taxable		(1,194	)		(292	)		(1,486	)		(2,487	)		1,239			(1,248	)		(2,746	)		2,579		(167	)
Tax-exempt		2,775			702			3,477			8,019			1,516			9,535			3,221			1,227		4,448
Federal funds sold and resell agreements		424			191			615			1,119			443			1,562			342			70		412
Interest-bearing due from banks		(196	)		166			(30	)		(778	)		789			11			(557	)		217		(340	)
Trading		38			61			99			51			45			96			112			123		235

Interest income		13,714			3,095			16,809			54,490			18,465			72,955			9,835			10,769		20,604
Change in interest incurred on:
Interest-bearing deposits		419			344			763			1,857			527			2,384			91			1,820		1,911
Federal funds purchased and repurchase agreements		216			1,251			1,467			347			3,014			3,361			579			1,660		2,239
Other borrowed funds		(69	)		(222	)		(291	)		1,174			(218	)		956			(176	)		207		31

Interest expense		566			1,373			1,939			3,378			3,323			6,701			494			3,687		4,181

Net interest income	$	13,148		$	1,722		$	14,870		$	51,112		$	15,142		$	66,254		$	9,341		$	7,082	$	16,423


	Three Months Ended									Nine Months Ended
	September 30,									September 30,									Three Months Ended March 31,
	2016			2015			Change			2016			2015			Change			2017			2016			Change
Average earning assets	$	18,373,456		$	16,842,320		$	1,531,136		$	18,155,544		$	16,198,153		$	1,957,391		$	18,854,173		$	18,004,411		$	849,762

Interest-bearing liabilities		11,775,456			10,255,676			1,519,780			11,522,425			9,759,266			1,763,159			12,050,103			11,218,887			831,216

Interest-free funds	$	6,598,000		$	6,586,644		$	11,356		$	6,633,119		$	6,438,887		$	194,232		$	6,804,070		$	6,785,524		$	18,546

Free funds ratio (free funds to earning assets)		35.91	%		39.11	%		(3.20	)%		36.53	%		39.75	%		(3.22	)%		36.09	%		37.69	%		(1.60	)%

Tax-equivalent yield on earning assets		3.03			2.86			0.17			2.99			2.71			0.28			3.31	%		2.93	%		0.38	%
Cost of interest-bearing liabilities		0.25			0.21			0.04			0.23			0.18			0.05			0.35			0.22			0.13

Net interest spread		2.78			2.65			0.13			2.76			2.53			0.23			2.96	%		2.71	%		0.25	%
Benefit of interest-free funds		0.09			0.08			0.01			0.08			0.07			0.01			0.13			0.08			0.05

Net interest margin		2.87	%		2.73	%		0.14	%		2.84	%		2.60	%		0.24	%		3.09	%		2.79	%		0.30	%

The allowance for loan losses (ALL) represents management’s judgment of the losses inherent in the Company’s loan portfolio as of the balance sheet date. An analysis is performed quarterly to determine the appropriate balance of the ALL. This analysis considers items such as historical loss trends, a review of individual loans, migration analysis, current economic conditions, loan growth and characteristics, industry or segment concentration and other factors. After the balance sheet analysis is performed for the ALL, the provision for loan losses is computed as the amount required to adjust the ALL to the appropriate level.

Based on the factors above, management of the Company ~~recorded $13.0~~expensed $9.0 million ~~and $25.0 million as~~related to the provision for loan losses for the three ~~and nine-month periods~~month period ended ~~September 30, 2016,~~March 31, 2017, compared to ~~$2.5 million and $10.5~~$5.0 million for the same ~~periods~~period in ~~2015, respectively.~~2016. As illustrated in Table 3 below, the ALL increased to ~~0.88~~0.87 percent of total loans as of ~~September 30, 2016,~~March 31, 2017, compared to ~~0.86~~0.83 percent of total loans as of the same period in ~~2015.~~2016.

Table 3 presents a summary of the Company’s ALL for the ~~nine~~three months ended ~~September 30,~~March 31, 2017 and 2016 ~~and 2015,~~ and for the year ended December 31, ~~2015.~~2016. Net charge-offs were ~~$15.7~~$7.3 million for the ~~nine~~first three months ~~ended 2016,~~of 2017, compared to ~~$8.6~~$5.7 million for the same period in ~~2015.~~2016. See “Credit Risk Management” under “Item 3. Quantitative and Qualitative Disclosures About Market Risk” in this report for information relating to nonaccrual loans, past due loans, restructured loans and other credit risk matters.


	Nine Months Ended						Year Ended			Three Months Ended						Year Ended
	September 30,						December 31,			March 31,						December 31,
	2016			2015			2015			2017			2016			2016
Allowance-January 1	$	81,143		$	76,140		$	76,140		$	91,649		$	81,143		$	81,143
Provision for loan losses		25,000			10,500			15,500			9,000			5,000			32,500

Charge-offs:
Commercial		(11,542	)		(4,624	)		(5,239	)		(5,981	)		(5,075	)		(12,788	)
Consumer:
Credit card		(6,348	)		(6,525	)		(8,555	)		(2,337	)		(2,349	)		(8,436	)
Other		(603	)		(888	)		(1,103	)		(200	)		(166	)		(843	)
Real estate		(2,938	)		(168	)		(214	)		(186	)		(1,445	)		(6,756	)

Total charge-offs		(21,431	)		(12,205	)		(15,111	)		(8,704	)		(9,035	)		(28,823	)

Recoveries:
Commercial		3,477			1,387			1,824			698			2,489			3,596
Consumer:
Credit card		1,334			1,401			1,802			522			568			1,730
Other		341			582			667			97			89			518
Real estate		540			225			321			61			144			985

Total recoveries		5,692			3,595			4,614			1,378			3,290			6,829

Net charge-offs		(15,739	)		(8,610	)		(10,497	)		(7,326	)		(5,745	)		(21,994	)

Allowance-end of period	$	90,404		$	78,030		$	81,143		$	93,323		$	80,398		$	91,649

Average loans, net of unearned interest	$	9,868,033		$	8,162,798		$	8,423,997		$	10,558,148		$	9,548,972		$	9,986,151
Loans at end of period, net of unearned interest		10,293,494			9,046,126			9,430,761			10,757,236			9,699,631			10,540,383
Allowance to loans at end of period		0.88	%		0.86	%		0.86	%		0.87	%		0.83	%		0.87	%
Allowance as a multiple of net charge-offs		4.30	x		6.78	x		7.73	x		3.14	x		3.48	x		4.17	x
Net charge-offs to:
Provision for loan losses		62.96	%		82.00	%		67.72	%		81.40	%		114.90	%		67.67	%
Average loans		0.21			0.14			0.12			0.28			0.24			0.22

A key objective of the Company is the growth of noninterest income to enhance profitability and provide steady income. ~~This income is~~ Fee-based businesses are typicallynon-credit related and not generally affected by fluctuations in interest rates.

The Company’s ~~noninterest income provides~~fee-based businesses provide the opportunity to offer multiple products and services, which management believes will more closely align the customer with the Company. The Company ~~generates noninterest income from~~is currently emphasizingfee-based businesses, including trust and securities processing, bankcard, brokerage, ~~health care~~healthcare services, and treasury management. Management believes it can offer these products and services both efficiently and profitably, as most ~~of these products and services~~ share common platforms and support ~~structures.~~structure.

SUMMARY OF NONINTEREST INCOME ~~(unaudited,~~(unaudited, dollars in thousands)


	Three Months Ended September 30,					Dollar Change			Percent Change			Three Months Ended March 31,						Dollar Change			Percent Change
	2016		2015			16-15			16-15			2017			2016			17-16			17-16
Trust and securities processing	$	60,218	$	65,182		$	(4,964	)		(7.6	)%	$	60,404		$	59,485		$	919			1.5	%
Trading and investment banking		6,114		2,969			3,145			>100			7,542			4,630			2,912			62.9
Service charges on deposits		21,832		21,663			169			0.8
Service charges on deposits accounts													22,075			21,461			614			2.9
Insurance fees and commissions		698		480			218			45.4			646			1,497			(851	)		(56.8	)
Brokerage fees		4,712		2,958			1,754			59.3			5,377			4,185			1,192			28.5
Bankcard fees		17,086		17,624			(538	)		(3.1	)		17,752			18,016			(264	)		(1.5	)

Gains on sales of securities available for sale, net		2,978		101			2,877			>100			468			2,933			(2,465	)		(84.0	)
Equity earnings (losses) on alternative investments		1,594		(5,032	)		6,626			>100
Equity losses on alternative investments													(614	)		(381	)		(233	)		(61.2	)
Other		6,716		3,153			3,563			>100			7,130			4,524			2,606			57.6

Total noninterest income	$	121,948	$	109,098		$	12,850			11.8	%	$	120,780		$	116,350		$	4,430			3.8	%


	Nine Months Ended September 30,					Dollar Change			Percent Change
	2016		2015			16-15			16-15
Trust and securities processing	$	179,448	$	199,862		$	(20,414	)		(10.2	)%
Trading and investment banking		16,382		14,659			1,723			11.8
Service charges on deposits		65,713		64,829			884			1.4
Insurance fees and commissions		3,355		1,636			1,719			>100
Brokerage fees		13,159		8,748			4,411			50.4
Bankcard fees		52,636		51,842			794			1.5
Gains on sales of securities available for sale, net		8,509		8,404			105			1.2
Equity earnings (losses) on alternative investments		2,191		(6,999	)		9,190			>100
Other		18,352		10,874			7,478			68.8

Total noninterest income	$	359,745	$	353,855		$	5,890			1.7	%

Fee-based, or noninterest income, ~~(summarized in Table 4),~~ increased by ~~$12.9~~$4.4 million, or ~~11.8~~3.8 percent, during the three months ended ~~September 30, 2016, and increased by $5.9 million, or 1.7 percent, during the nine months ended September 30, 2016,~~March 31, 2017, compared to the same ~~periods~~period in ~~2015.~~2016. Table 4 above summarizes the components of noninterest income and the respective year-over-year comparison for each category.

~~Trust and securities processing consists of fees earned on personal and corporate trust accounts, custody of securities services, trust investments~~Trading and investment ~~management services, and servicing of mutual fund assets. The decrease in these fees for~~banking increased by $2.9 million, or 62.9 percent, during the three ~~and nine-month periods~~months ended March 31, 2017, compared to the same ~~periods last year~~period in 2016. This increase was ~~primarily due~~

~~to changes in two categories of income. First, advisory fee income from the Scout Funds for~~Brokerage fees increased $1.2 million, or 28.5 percent, during the three ~~and nine-month periods~~months ended ~~September 30, 2016, decreased by $4.7 million, or 36.5 percent, and $19.8 million, or 44.0 percent, respectively,~~March 31, 2017, compared to the same ~~periods~~period in 2015, due to declines in the underlying assets under management (AUM) for the respective periods. Additionally, the mix of AUM in the Institutional Investment Management segment has shifted to a higher percentage of fixed income versus equity as of September 30, 2016 compared to September 30, 2015. Second, fund administration and custody services fees for the three and nine-month periods ended September 30, 2016, decreased by $1.0 million, or 4.3 percent, and $2.6 million, or 3.7 percent, respectively, due to a decrease in the underlying assets under administration. 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 for the remainder of the year will be affected by changes in the securities markets. Management continues to emphasize sales of services to both new and existing clients as well as increasing and improving the distribution channels.

Trading and investment banking fees for the three-month period ended September 30, 2016 increased $3.1 million, or 105.9 percent, and for the nine-month period ended September 30, 2016, increased $1.7 million, or 11.8 percent. The income in this category is market driven and impacted by general increases or decreases in trading volume.

~~Brokerage fees for the three and nine-month periods ended September 30, 2016, increased $1.8 million, or 59.3 percent, and increased $4.4 million, or 50.4 percent, respectively. These increases were~~2016. This increase was driven by ~~higher money market balances and~~a $1.3 million increase in12b-1 fee income.

~~During the three and nine-month periods ended September 30, 2016, $3.0~~first quarter of 2017, $0.5 million ~~and $8.5 million~~ inpre-tax gains were recognized on the sales of securities available for sale, as compared to ~~$0.1~~$2.9 million ~~and $8.4 million for the same periods in 2015.~~one year ago. The investment portfolio is continually evaluated for opportunities to improve its performance and risk profile relative to market conditions and the Company’s interest rate expectations. This can result in differences from quarter to quarter in the amount of realized gains.

During the three and nine-month periods ended September 30, 2016, gains of $1.6 million and $2.2 million of equity earnings on alternative investments were recognized on PCM investments, respectively, compared to losses of $5.0 million and $7.0 million for the same periods in 2015 due to changes in the underlying fund investments.

Other noninterest income ~~for~~increased $2.6 million, or 57.6 percent, during the three ~~and nine-month~~months ended March 31, 2017, compared to the same period ~~ended September 30, 2016, increased $3.6 million, or 113.0 percent, and $7.5 million, or 68.8 percent, respectively,~~in 2016. This increase was primarily driven by ~~increases~~a $2.0 million increase in the fair value of ~~$3.9 million and $6.9 million in~~ company-owned ~~and bank-owned~~ life insurance.

SUMMARY OF NONINTEREST EXPENSE ~~(unaudited~~(unaudited, dollars in thousands)


	Three Months Ended September 30,				Dollar Change			Percent Change			Three Months Ended March 31,				Dollar Change			Percent Change
	2016		2015		16-15			16-15			2017		2016		17-16			17-16
Salaries and employee benefits	$	109,369	$	104,733	$	4,636			4.4	%	$	113,834	$	106,850	$	6,984			6.5	%
Occupancy, net		11,394		11,748		(354	)		(3.0	)		11,148		10,972		176			1.6
Equipment		16,231		17,228		(997	)		(5.8	)		17,668		16,282		1,386			8.5
Supplies and services		4,624		5,371		(747	)		(13.9	)		4,281		4,949		(668	)		(13.5	)
Marketing and business development		5,332		5,766		(434	)		(7.5	)		4,503		4,441		62			1.4
Processing fees		11,264		12,795		(1,531	)		(12.0	)		11,301		11,462		(161	)		(1.4	)
Legal and consulting		4,450		8,648		(4,198	)		(48.5	)		5,300		4,799		501			10.4
Bankcard		5,015		5,266		(251	)		(4.8	)		4,903		5,815		(912	)		(15.7	)
Amortization of other intangible assets		2,992		3,483		(491	)		(14.1	)		2,869		3,226		(357	)		(11.1	)
Regulatory fees		3,370		3,176		194			6.1			3,833		3,429		404			11.8
Other		5,742		7,065		(1,323	)		(18.7	)		9,126		8,219		907			11.0

Total noninterest expense	$	179,783	$	185,279	$	(5,496	)		(3.0	)%	$	188,766	$	180,444	$	8,322			4.6	%


	Nine Months Ended September 30,				Dollar Change			Percent Change
	2016		2015		16-15			16-15
Salaries and employee benefits	$	325,216	$	302,855	$	22,361			7.4	%
Occupancy, net		33,505		32,070		1,435			4.5
Equipment		49,545		46,810		2,735			5.8
Supplies and services		14,292		14,299		(7	)		—
Marketing and business development		16,086		16,914		(828	)		(4.9	)
Processing fees		34,190		38,232		(4,042	)		(10.6	)
Legal and consulting		14,186		18,943		(4,757	)		(25.1	)
Bankcard		16,199		14,987		1,212			8.1
Amortization of other intangible assets		9,363		8,807		556			6.3
Regulatory fees		10,491		8,805		1,686			19.1
Other		22,497		18,934		3,563			18.8

Total noninterest expense	$	545,570	$	521,656	$	23,914			4.6	%

Noninterest expense ~~decreased~~increased by ~~$5.5~~$8.3 million, or ~~3.0~~4.6 percent, for the three months ended ~~September 30, 2016 and increased $23.9 million, or 4.6 percent, for the nine months ended September 30, 2016,~~March 31, 2017 compared to the same ~~periods~~period in ~~2015.~~2016. Table 5 above summarizes the components of noninterest expense and the respective year-over-year comparison for each category.

Salaries and employee benefits increased by ~~$4.6~~$7.0 million, or 4.4 percent, and increased $22.4 million, or 7.4 percent, for the three and nine months ended September 30, 2016, respectively, compared to the same periods in 2015. For the nine month increase, the Marquette acquisition contributed approximately $11.5 million of this increase and is embedded in the breakouts in the following paragraph. Non-acquisition related severances for the three and nine month comparative periods increased $0.3 million and $2.5 million, respectively, and included in the commissions and bonuses line as noted below.

~~Salaries and wages decreased $0.7 million, or 1.0~~6.5 percent, for the three months ended ~~September 30, 2016 and increased $9.4 million, or 5.0 percent, for the nine months ended September 30, 2016, respectively,~~March 31, 2017, compared to the same ~~periods~~period in ~~2015. Commissions~~2016. The increase is primarily due to a $1.9 million, or 3.0 percent, increase in salaries and wages, a $1.9 million, or 8.8 percent, increase in commissions and bonuses, ~~increased $2.0~~and a $3.1 million, or ~~8.2~~15.5 percent, ~~and $8.0 million, or 12.1 percent,~~increase in employee benefits expense for the three ~~and nine~~ months ended ~~September 30, 2016, respectively,~~March 31, 2017, compared to the same ~~periods in 2015 driven by increased company performance. Employee benefits~~period of 2016.

Equipment expense increased ~~$3.4~~by $1.4 million, or 26.2 percent, and $5.0 million, or 10.1 percent, for the three and nine month period ended September 30, 2016, respectively, compared to the same periods in 2015, due to an increase the fair value of the Company’s deferred compensation plan.

Processing fees expense decreased $1.5 million, or 12.0 percent, and $4.0 million, or 10.6 percent, for the three and nine months ended September 30, 2016, respectively, compared to the same periods in 2015 primarily due to decreased fees paid by the third-party advisor to distributors of the Scout Funds.

Legal and consulting expense decreased $4.2 million, or 48.5 percent, and $4.8 million, or 25.1 percent, for the three and nine months ended September 30, 2016, respectively, compared to the same periods in 2015. The decreases in both periods are primarily due to the reduction of the use of consulting services.

~~Other noninterest expense decreased $1.3 million, or 18.7~~8.5 percent, for the three months ended ~~September 30, 2016 and increased $3.6 million, or 18.8 percent, for the nine months ended September 30, 2016, respectively,~~March 31, 2017, compared to the same ~~periods~~period in ~~2015.~~2016. The ~~decrease in the three months period~~increase is primarily due to ~~a $1.1 million decrease~~increases in ~~off-balance sheet commitment reserves~~computer and hardware costs related to investments for regulatory requirements, cyber security, and the ~~increase in~~ongoing modernization of the ~~nine months period is primarily due to fair value adjustments to contingent consideration liabilities recorded in 2015.~~Company’s core systems.

Total acquisition expenses recognized in noninterest expense during the third quarter 2016 totaled $0.4 million and totaled $4.5 million for the first nine months of 2016, compared to $4.9 million and $6.4 million for the same periods in 2015, respectively.

The Company’s effective tax rate was ~~24.3~~22.9 percent for the ~~nine~~three months ended ~~September 30, 2016,~~March 31, 2017, compared to ~~27.6~~25.4 percent for the same period ~~in 2015.~~a year earlier. The ~~decrease is~~effective tax rate decreased primarily ~~attributable to~~as a result of an increase in ~~federal~~excess tax ~~credits and~~benefits associated with stock compensation recorded in the first quarter of 2017 compared to the same period a ~~larger portion of income earned from excludable life insurance policy gains.~~year earlier.


	Three Months Ended March 31,				Dollar Change		Percent Change
	2017		2016		17-16		17-16
Net interest income	$	131,663	$	115,271	$	16,392		14.2	%
Provision for loan losses		9,000		5,000		4,000		80.0
Noninterest income		79,215		75,417		3,798		5.0
Noninterest expense		150,251		142,967		7,284		5.1

Income before taxes		51,627		42,721		8,906		20.8
Income tax expense		11,861		10,855		1,006		9.3

Net income	$	39,766	$	31,866	$	7,900		24.8	%

Bank net income increased by ~~$39.7~~$7.9 million, or ~~63.5~~24.8 percent, to ~~$102.2~~$39.8 million ~~for the nine-month period ended September 30, 2016,~~ compared to the ~~same period in 2015.~~prior year. Net interest income increased ~~$61.6~~$16.4 million, or ~~21.0~~14.2 percent ~~for~~over the ~~nine-month period ended September 30,~~first quarter of 2016, ~~compared to the same period in 2015,~~ primarily driven by strong loan growth ~~a change in the Company’s earning asset mix,~~ and ~~higher loan~~improved yields. Provision for loan losses increased by ~~$14.5~~$4.0 million, due to ~~adjust the related ALL to the appropriate level based on the inherent risk in~~characteristics of the loan portfolio driving an increased allowance for loan loss reserve for this segment. Noninterest income increased ~~$25.2~~$3.8 million, or ~~12.0~~5.0 percent, over the same period in ~~2015~~2016 primarily driven by the following increases: ~~unrealized gains on PCM equity method investments~~bond trading income of ~~$9.2~~$1.5 million, brokerage and mutual fund income of ~~$4.4~~$1.2 million due to an increase in12b-1 fees, ~~bank-owned~~trust and securities processing income of $1.5 million, derivative income of $0.7 million, and company-owned life insurance income of ~~$4.0 million, insurance and annuities income of $1.7 million, trust and securities processing income of $1.6 million, and healthcare deposit service charges of $1.4~~$0.6 million. These increases were offset by ~~decreases~~a decrease of $2.4 million in ~~commercial and consumer deposit service charges~~gains on sales of ~~$1.5 million.~~available-for-sale securities.

Noninterest expense increased ~~$23.6~~$7.3 million, or ~~5.8~~5.1 percent, to ~~$431.6~~$150.3 million ~~for the nine-month period ended September 30, 2016,~~ compared to the same period in 2015. This increase was primarily driven by increases of $18.8 million in salaries and benefits, $1.2 million in bankcard expense, $1.1 million in services and supplies, $1.1 million in amortization of intangibles, $1.3 million in regulatory fees, and $1.0 million in furniture and equipment expense.prior year. The increase in ~~salaries~~noninterest expense is due to the following increases: $4.0 million in technology, service, and ~~benefits is driven by increases~~overhead expenses due to the ongoing modernization of ~~$10.7~~our core systems, $3.4 million in salary and ~~wage~~benefit expense, ~~$5.1~~and a $1.0 million write-down on other real estate owned property. These increases were partially offset by decreases of $1.5 million in ~~bonus and commission expense, and $3.0 million in employee benefit~~consulting expense. The increase in employee benefit expense was driven, in part, by a $0.9 million increase in the fair value of the Company’s deferred compensation plan. Additionally, there was an increase in other noninterest expense of $1.2 million, largely due to an increase of $2.4 million in fair value adjustments to contingent consideration liabilities incurred in 2015, offset by a decline in operational losses in the comparative periods.

Institutional Investment Management Operating Results(unaudited, dollars in thousands)


	Three Months Ended September 30,				Dollar Change			Percent Change			Three Months Ended March 31,				Dollar Change		Percent Change
	2016		2015		16-15			16-15			2017		2016		17-16		17-16
Net interest income	$	—	$	49	$	(49	)		(>100.0	)%	$	—	$	—	$	—		—	%
Provision for loan losses		—		—		—			—			—		—		—		—
Noninterest income		19,413		21,398		(1,985	)		(9.3	)		19,254		18,425		829		4.5
Noninterest expense		16,874		16,495		379			2.3			17,676		17,266		410		2.4

Income before taxes		2,539		4,952		(2,413	)		(48.7	)		1,578		1,159		419		36.2
Income tax expense		519		1,409		(890	)		(63.2	)		345		287		58		20.2

Net income	$	2,020	$	3,543	$	(1,523	)		(43.0	)%	$	1,233	$	872	$	361		41.4	%


	Nine Months Ended September 30,				Dollar Change			Percent Change
	2016		2015		16-15			16-15
Net interest income	$	—	$	27	$	(27	)		(>100.0	)%
Provision for loan losses		—		—		—			—
Noninterest income		56,965		74,182		(17,217	)		(23.2	)
Noninterest expense		52,993		52,799		194			0.4

Income before taxes		3,972		21,410		(17,438	)		(81.4	)
Income tax expense		899		5,899		(5,000	)		(84.8	)

Net income	$	3,073	$	15,511	$	(12,438	)		(80.2	)%

~~For the nine months ended September 30, 2016,~~ Institutional Investment Management net income ~~decreased $12.4~~increased $0.4 million, or ~~80.2~~41.4 percent, to $1.2 million as compared to the ~~same period in 2015.~~prior year. Noninterest income ~~decreased $17.2~~increased $0.8 million, or ~~23.2~~4.5 percent, primarily due to a ~~$15.1~~$1.4 million ~~decrease~~increase in ~~advisory fees from the Scout Funds offset by an~~corporate-owned life insurance income and a $0.3 million increase ~~of $0.2 million~~ in advisory fees from separately managed ~~accounts, both~~accounts. These increases were offset by a decrease of ~~which are~~$0.9 million in advisory and administrative fees from the Scout Funds, driven by ~~changes~~a change in AUM. During the period of December 31, 2015 to September 30, 2016 total Scout AUM increased from $27.2 billion to $28.1 billion, while during the period of December 31, 2014 to September 30, 2015 Scout AUM decreased from $31.2 billion to $28.0 billion. Additionally, the mix of ~~AUM~~assets under management in the funds. Overall assets under management have increased to $27.9 billion compared to $27.3 billion a year ago. However, the mix of assets under management in Scout has shifted between the two periods from ~~76.0~~80 percent fixed income and ~~24.0~~20 percent equity as of ~~September 30, 2015~~March 31, 2016 to ~~82.9~~83 percent fixed income and ~~17.1~~17 percent equity as of ~~September 30, 2016. The~~March 31, 2017. Noninterest expense increased $0.4 million, or 2.4 percent, primarily due to a $0.9 million increase in ~~noninterest~~salary and benefit expense, of $0.2 million, or 0.4 percent, as compared to the prior year was primarily driven by increases of $5.7 million in salaries and benefits expense driven by severance and increased incentives and increases in the fair value of the deferred compensation plan, and $1.1 million in fair value adjustments to contingent consideration liabilities incurred in 2015. These increases were offset by ~~decreases~~a decrease of ~~$4.5~~$0.4 million in fees paid by the advisor to third-party distributors of the Scout ~~Funds, $1.6~~Funds.

As previously mentioned in Note 12 above, on April 20, 2017, the Company announced the execution of an agreement to sell all of the outstanding stock of Scout Investments, Inc. (Scout), its institutional investment management subsidiary, for $172.5 million in ~~technology, service~~cash, subject to customary purchase price adjustments at closing. This transaction is expected to be accretive to both income and ~~overhead expenses as compared~~capital. The Company plans to use the ~~prior year,~~proceeds from the transaction for general corporate purposes and ~~$0.5 million~~to support its continued organic growth in ~~marketing~~the commercial, consumer, private wealth, institutional banking, healthcare, and ~~business development expense.~~asset servicing businesses. See Items 1.01 and 5.02 in the Company’s Current Report on Form8-K that was filed April 20, 2017


	Three Months Ended September 30,				Dollar Change			Percent Change			Three Months Ended March 31,				Dollar Change			Percent Change
	2016		2015		16-15			16-15			2017		2016		17-16			17-16
Net interest income	$	2,802	$	1,422	$	1,380			97.0	%	$	2,652	$	2,621	$	31			1.2	%
Provision for loan losses		—		—		—			—			—		—		—			—
Noninterest income		22,081		22,493		(412	)		(1.8	)		22,311		22,508		(197	)		(0.9	)
Noninterest expense		20,073		19,515		558			2.9			20,839		20,211		628			3.1

Income before taxes		4,810		4,400		410			9.3			4,124		4,918		(794	)		(16.1	)
Income tax expense		1,038		1,234		(196	)		(15.9	)		942		1,253		(311	)		(24.8	)

Net income	$	3,772	$	3,166	$	606			19.1	%	$	3,182	$	3,665	$	(483	)		(13.2	)%


	Nine Months Ended September 30,				Dollar Change			Percent Change
	2016		2015		16-15			16-15
Net interest income	$	8,020	$	3,376	$	4,644			>100	%
Provision for loan losses		—		—		—			—
Noninterest income		66,865		68,978		(2,113	)		(3.1	)
Noninterest expense		60,983		60,860		123			0.2

Income before taxes		13,902		11,494		2,408			21.0
Income tax expense		3,348		3,124		224			7.2

Net income	$	10,554	$	8,370	$	2,184			26.1	%

~~For the nine months ended September 30, 2016,~~ Asset Servicing net income ~~increased $2.2~~decreased $0.5 million, or ~~26.1~~13.2 percent, to ~~$10.6 million as compared to the same period in 2015. Net interest income increased $4.6~~$3.2 million compared to the same period last year. Net interest income and noninterest income were flat as compared to the prior year. Assets under administration stood at $191.6 billion at March 31, 2017, as compared to $180.7 billion at March 31, 2016. Noninterest ~~income decreased $2.1~~expense increased $0.6 million, or 3.1 percent, largely due to decreased fund administration, fund transfer agency, and custody fees. As of September 30, 2016, assets under administration totaled $186.2 billion compared to $192.0 billion at September 30, 2015. For the nine months ended September 30, 2016, noninterest expense increased $0.1 million, or 0.2 percent, as compared to the same period last year, primarily due to an increase of ~~$1.5~~$0.8 million in salary and ~~benefits expense partially offset by a decrease of $2.0 million in technology, service and overhead expenses.~~benefit expense.

Total assets of the Company ~~increased~~decreased by ~~$631.9~~$106.4 million, or ~~3.3~~0.5 percent, as of ~~September 30, 2016,~~March 31, 2017, compared to December 31, ~~2015,~~2016, primarily ~~due to an increase in loan balances of $862.7 million, or 9.1 percent, an increase in held-to-maturity (HTM) securities of $342.0 million, or 51.3 percent, offset~~driven by a decrease in ~~available-for-sale (AFS)~~due from Federal Reserve balances of $318.9 million, or 49.7 percent, and a decrease in resell agreements of $128.0 million, or 39.6 percent. These decreases were partially offset by an increase in total loans of $216.9 million, or 2.1 percent, an increase inheld-to-maturity securities of ~~$511.3~~$90.7 million, or ~~7.5~~8.1 percent, and an increase inavailable-for-sale securities of $85.3 million or 1.3 percent. The decrease in total assets is directly related to a corresponding decrease in deposit balances of $675.4 million, or 4.1 percent, which was partially offset by an increase in federal funds purchased and repurchase agreements of $533.4 million, or 28.7 percent, from December 31, 2016 to March 31, 2017.

Total assets of the Company increased ~~$1.1~~$1.3 billion, asor 6.6 percent, from March 31, 2016 to March 31, 2017. This increase is a result of ~~September 30, 2016, or 6.1 percent, compared to September 30, 2015, primarily due to~~ an increase in ~~loan balances~~loans of ~~$1.2~~$1.1 billion, or ~~13.8~~10.9 percent, and an increase in ~~HTM~~held-to-maturity securities of ~~$420.6~~$402.0 million, or ~~71.5 percent, which were partially offset by a decrease in AFS securities of $376.1 million, or 5.6~~50.0 percent.

The overall increase in total assets from ~~September 30, 2015 and December~~March 31, ~~2015~~2016 to ~~September 30, 2016 is related to~~March 31, 2017 was funded by an increase in federal funds purchased and ~~securities sold under agreement to repurchase~~resell agreements of $708.6 million and ~~deposits during those periods. Compared to December 31, 2015,~~an increase in total deposits ~~increased by $285.5 million, or 1.9 percent, and federal funds purchased and securities sold under agreement to repurchase increased $203.1 million, or 11.2 percent, as~~ of September 30, 2016. Federal funds purchased and securities sold under agreement to repurchase increased by $678.5 million, or 50.5 percent, and total deposits increased $316.7 million, or 2.1 percent, from September 30, 2015.$476.8 million.

SELECTED ~~FINANCIAL~~BALANCE SHEET INFORMATION(unaudited, dollars in thousands)


	September 30,				December 31,		March 31,				December 31,
	2016		2015		2015		2017		2016		2016
Total assets	$	19,726,146	$	18,597,965	$	19,094,245	$	20,576,137	$	19,302,913	$	20,682,532
Loans, net of unearned interest		10,305,374		9,047,139		9,431,350
Loans and loans held for sale								10,759,170		9,704,461		10,545,662
Total investment securities		7,429,719		7,352,293		7,568,870		7,901,636		7,779,334		7,690,108
Interest-bearing due from banks		453,189		847,077		522,877		374,570		401,961		715,823
Total earning assets		18,342,769		17,267,241		17,615,581		19,138,520		17,976,182		19,184,271
Total deposits		15,378,249		15,061,559		15,092,752		15,895,184		15,418,373		16,570,614
Total borrowed funds		2,096,541		1,431,134		1,909,141		2,466,468		1,771,967		1,933,709

Loans represent the Company’s largest source of interest income. In addition to growing the commercial loan portfolio, management believes its middle market commercial business and its consumer business, including home equity and credit card loan products, are the market niches that ~~generate additional noninterest income for the Company.~~represent its best opportunity to cross-sellfee-related services.

~~Actual~~Total loan balances ~~totaled $10.3 billion as of September 30, 2016, and~~ increased ~~$862.7~~$216.9 million, or ~~9.1~~2.1 percent, ~~compared~~ to $10.8 billion from December 31, ~~2015 and increased $1.2 billion, or 13.8 percent, compared~~2016 to ~~September 30, 2015. Compared to December~~March 31, ~~2015,~~2017. This increase was primarily driven by increases in commercial ~~real estate~~ loans ~~increased $347.8~~of $145.6 million, or 13.1 percent, construction real estate loans increased $266.1 million, or 63.9 percent, and commercial loans increased $232.8 million, or 5.5 percent. Compared to September 30, 2015, commercial real estate loans increased $518.7 million, or 20.8 percent, commercial loans increased $351.2 million, or 8.63.3 percent, and construction real estate loans ~~increased $315.6~~of $107.8 million, or ~~86.0~~14.5 percent. ~~The~~

Total loan balances increased $1.1 billion, or 10.9 percent, compared from March 31, 2016 to March 31, 2017. This increase in ~~total loans is~~ driven by increases in the ~~Company’s focus on generating higher-yielding earning assets by shifting assets from the securities portfolio to the~~following loan ~~portfolio.~~categories: commercial real estate loans of $378.1 million, or 13.7 percent, construction real estate loans of $352.1 million, or 70.8 percent, and commercial loans of $209.3 million, or 4.8 percent.

Nonaccrual, past due, and restructured loans are discussed under “Credit Risk Management” within “Item 3. Quantitative and Qualitative Disclosures About Market Risk” in this report.

The Company’s investment portfolio contains trading, ~~AFS,~~available-for-sale (AFS), and ~~HTM~~held-to-maturity (HTM) securities as well as FRB stock, FHLB stock, and other miscellaneous investments. Investment securities totaled ~~$7.4~~$7.9 billion as of ~~September 30, 2016~~March 31, 2017 and ~~$7.6~~$7.7 billion as of December 31, ~~2015~~2016 and comprised ~~40.5~~41.3 percent and ~~43.0~~40.1 percent of the Company’s earning assets, respectively, as of those dates.

The Company’s AFS securities portfolio comprised ~~84.7~~82.9 percent of the Company’s investment securities portfolio at ~~September 30, 2016,~~March 31, 2017, compared to ~~89.9~~84.1 percent at December 31, ~~2015.~~2016. 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 increased from ~~44.2~~43.4 months at ~~September 30, 2015~~March 31, 2016 to ~~45.0~~54.9 months at ~~September 30, 2016.~~March 31, 2017. 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 ~~$5.1~~$5.5 billion of AFS securities

pledged to secure U.S. Government deposits, other public deposits, certain trust deposits, ~~derivative transactions,~~ and repurchase agreements at ~~September 30, 2016.~~March 31, 2017. Of this amount, securities with a market value of ~~$1.4~~$1.7 billion at ~~September 30, 2016~~March 31, 2017 were pledged at the Federal Reserve Discount Window but were unencumbered as of that date.

The Company’s HTM securities portfolio consists of private placement bonds, which are issued primarily to refinance existing revenue bonds in the healthcare and education sectors. The HTM portfolio totaled ~~$1.0~~$1.2 billion as of ~~September 30, 2016,~~March 31, 2017, an increase of ~~$342.0~~$90.7 million, or ~~51.3~~8.1 percent, from December 31, ~~2015.~~2016. The average life of the HTM portfolio ~~was 10.3~~remained flat at 7.3 years ~~at September 30, 2016,~~as of March 31, 2017, compared to ~~9.8~~7.4 years at December 31, ~~2015.~~2016.

The securities portfolio generates the Company’s second largest component of interest income. The securities portfolio achieved an average yield on atax-equivalent basis of ~~2.08~~2.40 percent for the ~~nine~~three months ended ~~September 30, 2016,~~March 31, 2017, compared to ~~1.94~~2.05 percent for the same period in ~~2015.~~2016.

Deposits ~~increased $285.5~~decreased $675.4 million, or ~~1.9~~4.1 percent, from December 31, ~~2015~~2016 to ~~September 30,~~March 31, 2017. Of this decline, $452.3 million was related tonon-interest bearing deposits and $223.1 million was related to interest-bearing deposits. From March 31, 2016 ~~and~~to March 31, 2017, total deposits increased ~~$316.7~~$476.8 million, or ~~2.1~~3.1 percent, ~~from September 30, 2015 to September 30, 2016. Total~~and the entire increase was comprised of interest-bearing deposits increased $584.1 million from December 31, 2015 offset by a decrease of $298.6 million in non-interest bearing deposits. Total interest-bearing deposits increased $566.3 million from September 30, 2015 offset by a decrease of $249.6 million in noninterest-bearing deposits.

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 trust and mutual fund servicing segments, in order to attract and retain additional core deposits. Management believes a strong core deposit composition is one of the Company’s key ~~strengths given its competitive product mix.~~competencies.

Long-term debt totaled ~~$75.4~~$76.1 million at ~~September 30, 2016,~~March 31, 2017, which is relatively flat compared to ~~$86.1 million as of~~ December 31, ~~2015,~~2016 and ~~$83.5~~a decrease of $9.1 million ~~as of September 30, 2015. As part~~from March 31, 2016. The majority of the ~~Marquette acquisition, the Company assumed~~Company’s long-term debt ~~obligations with an aggregate balance~~was assumed from the acquisition of ~~$103.1 million~~Marquette and ~~an aggregate fair value~~consists of ~~$65.5 million as of May 31, 2015~~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 ~~had~~previously issued trust preferred securities. These long-term debt obligations ~~had~~have an aggregate contractual balance of $103.1 million and ~~had an aggregate~~a carrying value of ~~$66.7~~$67.5 million ~~as of September 30, 2016. The interest~~at March 31, 2017. Interest rates on trust preferred securities ~~issued by the trusts~~ are tied to the three-month ~~LIBOR~~London Interbank Offered Rate (LIBOR) rate with spreads ranging from 133 basis points to 160 basis points, ~~which~~and reset quarterly. The trust preferred securities have maturity dates ranging from January 2036 to September 2036.

Federal funds purchased and securities sold under agreement to repurchase totaled ~~$2.0~~$2.4 billion at ~~September 30, 2016, $1.8~~March 31, 2017, compared to $1.9 billion at December 31, ~~2015~~2016 and ~~$1.3~~$1.7 billion at ~~September 30, 2015.~~March 31, 2016. 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 ~~or similar issues~~securities at an agreed-upon price and date.

The Company places a significant emphasis on ~~the maintenance of~~maintaining a strong capital position, which 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 was $2.0 billion at ~~September 30, 2016,~~March 31, 2017, a ~~$130.9~~$48.5 million increase compared to December 31, ~~2015,~~2016, and a ~~$123.8~~$62.5 million increase compared to ~~September 30, 2015.~~March 31, 2016.

The Company’s Board of Directors authorized, at its April ~~26, 2016~~25, 2017 and April ~~28, 2015~~26, 2016 meetings, the repurchase of up to two million shares of the Company’s common stock during the twelve months following the meetings. During the ~~nine~~three months ended ~~September 30,~~March 31, 2017 and 2016, ~~and 2015,~~ the Company acquired ~~292,624~~52,689 shares and ~~119,690~~269,522 shares ~~of its common stock~~ under the 2016 and 2015 ~~repurchase~~ plans, ~~respectively.~~respectively, of its common stock. The Company has not made any repurchase of its securities other than through these plans.

On ~~October~~April 25, ~~2016,~~2017, the Board of Directors declared a dividend of $0.255 per ~~share quarterly cash~~share. The dividend ~~payable~~will be paid on ~~January~~July 3, 2017 to shareholders of record at the close of business on ~~December 9, 2016.~~June 12, 2017.

Through the Company’s relationship with the FHLB of Des Moines, 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. The Company’s borrowing capacity with the FHLB was ~~$499.0~~$842.2 million as of ~~September 30, 2016.~~March 31, 2017. The Company had no outstanding FHLB advances at FHLB of Des Moines as of September 30, 2016. Additionally, the Company owns $0.1 million of FHLB of San Francisco stock, acquired as part of the Marquette acquisition. The Company paid off $15.0 million of FHLB of San Francisco advances during the three-month period ended September 30, 2016 and had no outstanding advances at FHLB of San Francisco as of September 30, 2016.March 31, 2017.

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. ~~Effective January 1, 2015, the~~The Company has implemented the Basel III regulatory capital rules adopted by the ~~FRB in July 2013.~~FRB. Basel III capital ~~rules increase minimum requirements for both the quantity and quality of capital held by banking organizations. The~~ rules include a minimum ratio of common equity tier 1 capital to risk-weighted assets of 4.5 percent and a minimum tier 1 risk-based capital ratio of 6 percent. A financial institution’s total capital is also required to equal at least 8 percent of risk-weighted assets. At least half of that 8 percent must consist of tier 1 core capital, and the remainder may be tier 2 supplementary capital. The Basel III regulatory capital rules include transitional periods for various components of the rules that require full compliance for the Company by January 1, 2019, including a capital conservation buffer requirement of 2.5 percent of risk-weighted assets for which the transitional period began on January 1, 2016.

The risk-based capital guidelines indicate the specific risk weightings by type of asset. Certainoff-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 percent. The leverage ratio is calculated as ratio of tier 1 core capital to total average assets, less goodwill and intangibles. The Company’s capital position as of ~~September 30, 2016~~March 31, 2017 is summarized in the table below and exceeded regulatory requirements.


	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015			Three Months Ended March 31,
RATIOS													2017			2016
Common equity tier 1 capital ratio		11.75	%		12.39	%		11.75	%		12.39	%		11.89	%		11.80	%
Tier 1 risk-based capital ratio		11.75			12.51			11.75			12.51			11.89			11.80
Total risk-based capital ratio		12.82			13.50			12.82			13.50			12.96			12.85
Leverage ratio		8.99			9.27			8.99			9.27			9.11			8.78
Return on average assets		0.85			0.49			0.79			0.66			0.89			0.76
Return on average equity		8.25			4.72			7.81			6.53			9.04			7.54
Average equity to assets		10.27			10.42			10.17			10.14			9.80			10.04


	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015			Three Months Ended March 31,
Per Share Data													2017			2016
Earnings basic	$	0.86		$	0.46		$	2.37		$	1.85		$	0.90		$	0.75
Earnings diluted		0.85			0.46			2.36			1.84			0.89			0.74
Cash dividends		0.245			0.235			0.735			0.705			0.255			0.245
Dividend payout ratio		28.49	%		51.09	%		31.01	%		38.11	%		28.33	%		32.67	%
Book value	$	40.86		$	38.56		$	40.86		$	38.56		$	40.34		$	39.39

The Company’s mainoff-balance sheet arrangements are loan commitments, commercial and standby letters of credit, futures contracts, and forward exchange contracts, which have maturity dates rather than payment due dates. Please see Note ~~10,~~9, “Commitments, Contingencies and Guarantees” in the Notes to the Consolidated Financial Statements for detailed information on these arrangements.

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 anon-going basis, management evaluates its estimates and judgments, including those related to customers and suppliers, allowance for loan 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.

A summary of critical accounting policies is listed in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of the Company’s Form10-K.

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 and futures contracts to manage interest rate risk on certain loans, trading securities, trust preferred securities, and deposits. See further information in Note 1110 “Derivatives and Hedging Activities” in the Notes to the Company’s Consolidated Financial Statements.

Overall, the Company ~~manages~~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 upward or a 100 basis point downward gradual change (e.g. ramp) and immediate change (e.g. shock) of market interest rates over a two year period. In ramp scenarios, rates change gradually for a 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 11 shows the net interest income ~~percentage~~ increase or decrease over the next twelve ~~and twenty-four month periods~~months as of ~~September 30,~~March 31, 2017 and 2016 ~~and 2015~~ 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						March 31, 2017			March 31, 2016			March 31, 2017			March 31, 2016
(basis points)	September 30, 2016 Percentage change			September 30, 2015 Percentage change			September 30, 2016 Percentage change			September 30, 2015 Percentage change			Amount of change			Amount of change			Amount of change			Amount of change
300		3.7	%		5.1	%		9.7	%		15.5	%		1.8	%		5.0	%		8.2	%		12.6	%
200		2.3	%		3.3	%		6.3	%		10.5	%		0.6			3.1			4.8			8.3
100		0.8	%		1.6	%		2.9	%		5.3	%		(0.6	)		1.3			1.3			4.0
Static		—			—			—			—			—			—			—			—
(100)		N/A			N/A			N/A			N/A			(1.8	)		N/A			(6.6	)		N/A

	Hypothetical change in interest rate – Rate Shock												Hypothetical change in interest rate – Rate Shock
	Year One						Year Two						Year One						Year Two
													March 31, 2017			March 31, 2016			March 31, 2017			March 31, 2016
(basis points)	September 30, 2016 Percentage change			September 30, 2015 Percentage change			September 30, 2016 Percentage change			September 30, 2015 Percentage change			Amount of change			Amount of change			Amount of change			Amount of change
300		10.0	%		10.6	%		14.4	%		19.4	%		4.3	%		11.9	%		8.9	%		17.8	%
200		6.5	%		7.0	%		9.5	%		13.2	%		2.3			7.8			5.2			11.9
100		2.9	%		3.5	%		4.5	%		6.9	%		0.3			3.6			1.6			5.8
Static		—			—			—			—			—			—			—			—
(100)		N/A			N/A			N/A			N/A			(4.9	)		N/A			(8.5	)		N/A

The Company is positioned to benefit from increases in interest ~~rates.~~rates in all but the year one 100 basis point upward rate ramp scenario. Net interest income is projected to increase in rising interest rate scenarios due to expected increases in earning asset yields ~~on earning assets increasing more due to changes in market rates~~at a pace that is greater and earlier than the impacts on cost of ~~paying liabilities is~~interest bearing liabilities. The Company’s level of sensitivity has declined over the past year due primarily to: 1) balance sheet changes and recent rate increases which have significantly increased actual and projected static net interest income, resulting in a larger base net interest income and 2) the Company’s modeling assumptions that deposit pricing will revert to projected or historical levels under these scenarios. Since actual sensitivity on deposit pricing has been lower than projected to ~~increase. The~~date, the Company’s ~~ability~~modeling continues to ~~price deposits in~~assume a ~~rising rate environment consistent with our history is a key assumption in these scenarios. Due~~reversion of expected depositre-pricing to ~~the already low interest rate environment, the Company did not include a 100 basis point falling scenario. There is little room for projected yields on liabilities to decrease.~~historical norms.

The ~~Company’s subsidiary, UMB Bank, n.a. (the Bank),~~Company carries ~~taxable governmental~~ securities in a trading account that is maintained ~~in accordance with~~according to 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 avalue-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~~utilizing financial instruments including exchange-traded financial futures ~~contracts, with both the~~as well as short sales of U.S. Treasury and Corporate securities. The trading ~~account~~securities and ~~futures contracts marked to market~~related hedging instruments aremarked-to-market daily. ~~This~~The trading account had a balance of ~~$58.1~~$75.5 million as of ~~September 30, 2016, $29.6~~March 31, 2017, $39.5 million as of December 31, ~~2015~~2016, and ~~$23.7~~$26.8 million as of ~~September 30, 2015.~~March 31, 2016. Securities sold not yet purchased (i.e. short positions) totaled $22.8 million at March 31, 2017 and is classified within the Other liabilities line of the Company’s consolidated balance sheets.

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 11 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 does have ~~minimal~~ foreign currency risk that it does not consider material as a result of foreign exchange contracts. See Note 109 “Commitments, Contingencies and Guarantees” in the ~~Notes~~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 ranking 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~~non-accrual. At March 31, 2017, the Company’s nonperforming loans ~~increased $29.7~~totaled $56.6 million, ~~to $79.6 million at September 30, 2016, compared to September 30, 2015, and increased $18.5~~which was a decrease of $13.7 million, compared to December 31, ~~2015. This~~2016 and an increase ~~was primarily driven by the migration~~ of ~~two non-energy commercial credits during the third quarter of~~$1.7 million, compared to March 31, 2016.

The Company had ~~$0.3 million and $2.6~~$0.2 million of other real estate owned as of ~~September 30,~~March 31, 2017 and December 31, 2016, ~~and 2015, respectively, and~~compared to $3.3 million ~~of other real estate owned~~ as of ~~December~~March 31, ~~2015.~~2016. Loans past due more than 90 days totaled ~~$2.7~~$3.4 million as of ~~September 30, 2016, compared to $2.6 million at September 30, 2015 and $7.3 million as of~~March 31, 2017, which was flat with both December 31, ~~2015.~~2016 and March 31, 2016.

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 ~~$54.4~~$54.1 million of restructured loans at ~~September 30, 2016, $35.3 million at September 30, 2015, and $36.6~~March 31, 2017, compared to $52.5 million at December 31, ~~2015.~~2016, and $46.0 million at March 31, 2016.

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 ~~$6.3~~$6.6 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 ~~September 30, 2016, $5.1~~March 31, 2017, $5.5 billion, or ~~81.5~~83.8 percent, of the securitiesavailable-for-sale were pledged or used as collateral, compared to ~~$5.9~~$5.7 billion, or ~~86.7~~88.6 percent, at December 31, ~~2015.~~2016. However of these amounts, securities with a market value of ~~$1.4~~$1.7 billion at ~~September 30, 2016~~March 31, 2017 and ~~$1.6~~$1.8 billion at December 31, ~~2015~~2016 were pledged at the Federal Reserve Discount Window but were unencumbered as of those dates.

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 ~~September 30, 2016~~March 31, 2017 was ~~$9.6~~$9.5 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~~the Bank and ~~non-bank~~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 ~~its bank~~the Bank and ~~non-bank~~itsnon-Bank subsidiaries to maintain adequate capital as well as to fund strategic initiatives.

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 ~~$50.0~~$75.0 million for general working capital purposes. The interest rate applied to borrowed balances will be at the Company’s option, either 1.00 percent above LIBOR or 1.75 percent below ~~Prime~~the prime rate on the date of an advance. The Company ~~will also pay~~pays a 0.3 percent unused commitment fee for unused portions of the line of credit. The Company had no advances outstanding at ~~September 30, 2016.~~March 31, 2017.

The Company is a member bank of the ~~FHLB.~~FHLB of Des Moines. The Company owns $10.0 million of FHLB stock and has access to additional liquidity and funding sources through FHLB advances. ~~Additionally, the~~The Company has access to borrow up to ~~$499.0~~$842.2 million through advances at the FHLB of Des Moines, but had no outstanding FHLB Des Moines advances as of ~~September 30, 2016.~~March 31, 2017.

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 ~~over financial reporting~~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. Included in the legal and regulatory issues with which the Company must comply are a number of ~~imposed~~ rules resulting from the enactment of the Sarbanes-Oxley Act of 2002, as amended.

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 ~~the~~ 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 ~~over financial reporting~~ 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 ~~control over financial reporting,~~controls, systems and corporate-wide processes and procedures.

The Sarbanes-Oxley Act of 2002, as amended, requires the Chief Executive Officer and the Chief Financial Officer to make certain certifications with respect to this ~~Form 10-Q~~report and to the Company’s disclosure controls and procedures and internal control over financial reporting. The Company has a Code of Ethics that expresses the values that drive employee behavior and maintains the Company’s commitment to the highest standards of ethics.

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s “disclosure controls and procedures” (as such term is defined in Rule~~Rule~~ 13a-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this report. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by ~~this~~the report, the Company’s disclosure controls and procedures were effective for ensuring the following criteria for the information the Company is required to report in its periodic filings with the SEC. SEC filings are recorded, processed, summarized, and reported within the time period required and that ~~the~~ information required to be disclosed by the Company ~~in the reports that it files or submits under the Exchange Act~~ is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required ~~disclosure.~~disclosures.

During the quarter ended June 30, 2016, the Company completed the implementation of FIS Global’s IBS Loan system. This implementation was subject to various testing and review procedures prior to execution. The Company believes the conversion to, and implementation of, this new system further strengthened its existing internal control over financial reporting by enhancing certain business processes. Additionally, as a result of the acquisition of Marquette, we continue to integrate certain business processes and systems of Marquette. Accordingly, certain changes have been made and will continue to be made to our internal control over financial reporting until such time as this integration is complete.

~~Other than the changes described above, there have~~There has been no ~~other changes~~change in the Company’s internal control over financial reporting (as such term is defined in Rule13a-15(f) under the Exchange Act) during the three months ended March 31, 2015 that ~~have~~has materially affected, or ~~are~~is reasonably likely to materially affect, ~~such~~the Company’s internal control over financial ~~reporting during the period covered by this Form 10-Q.~~reporting.

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~~lawsuits are expected to ~~be material to~~have a materially adverse effect on the financial position, results of operations, or cash flows of the Company.

There were no material changes to the risk factors as previously disclosed in response to Item 1A to Part 1 of the Company’s Form10-K.

The table below sets forth the information with respect to purchases made by or on behalf of the Company or any “affiliated purchaser” (as defined in Rule10b-18(a)(3) under the Exchange Act) of our common stock during the three months ended ~~September 30, 2016.~~March 31, 2017.

On April 26, 2016, the Company announced a plan to repurchase up to two million shares of common stock, which terminated on April 25, 2017. On April 25, 2017, the Company announced a plan to repurchase up to two million shares of common stock. This plan will terminate on April ~~25, 2017.~~24, 2018. The Company has not made any repurchases ~~during the three month period ended September 30, 2016~~ other than through ~~this plan.~~these plans. All open market share purchases under the share repurchase plan are intended to be within the scope of Rule10b-18 promulgated under the Exchange Act. Rule10b-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 ~~stock.~~shares.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Missouri		43-0903811
(State or other jurisdiction of incorporation or organization)		(I.R.S. – Employer Identification Number)

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


PART I – FINANCIAL INFORMATION		3

ITEM 1.	FINANCIAL STATEMENTS ~~(UNAUDITED)~~	3
CONSOLIDATED BALANCE SHEETS		3
CONSOLIDATED STATEMENTS OF INCOME		4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME		5
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY		6
CONSOLIDATED STATEMENTS OF CASH FLOWS		7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		8
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	4334
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	6249
ITEM 4.	CONTROLS AND PROCEDURES	6654

PART II - OTHER INFORMATION		6755

ITEM 1.	LEGAL PROCEEDINGS	6755
ITEM 1A.	RISK FACTORS	6755
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	6755
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	6755
ITEM 4.	MINE SAFETY DISCLOSURES	6755
ITEM 5.	OTHER INFORMATION	6855
ITEM 6.	EXHIBITS	6856
SIGNATURES		6957
CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT		58
CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT		59
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002		60
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002		61


	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Net Income	$	41,946		$	22,451		$	115,867		$	86,430
Other comprehensive income, net of tax:
Unrealized (losses) gains on securities:
Change in unrealized holding (losses) gains, net		(16,946	)		46,166			90,639			33,289
Less: Reclassification adjustment for gains included in net income		(2,978	)		(101	)		(8,509	)		(8,404	)

Change in unrealized (losses) gains on securities during the period		(19,924	)		46,065			82,130			24,885
Change in unrealized losses on derivative hedges		(643	)		—			(7,677	)		—

Income tax benefit (expense)		7,784			(17,394	)		(28,223	)		(9,361	)

Other comprehensive (loss) income		(12,783	)		28,671			46,230			15,524

Comprehensive income	$	29,163		$	51,122		$	162,097		$	101,954


	Three Months Ended March 31,
	2017			2016
Net income	$	44,181		$	36,403
Other comprehensive income, net of tax:
Unrealized gains on securities:
Change in unrealized holding gains, net		22,271			65,312
Less: Reclassifications adjustment for gains included in net income		(468	)		(2,933	)

Change in unrealized gains on securities during the period		21,803			62,379
Change in unrealized gains (losses) on derivative hedges		246			(4,140	)

Income tax expense		(8,666	)		(22,053	)

Other comprehensive income		13,383			36,186

Comprehensive income	$	57,564		$	72,589


	Common Stock		Capital Surplus			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
Balance - January 1, 2015	$	55,057	$	894,602		$	963,911		$	11,006		$	(280,818	)	$	1,643,758
Total comprehensive income							86,430			15,524						101,954
Cash dividends ($0.705 per share)		—		—			(34,135	)		—			—			(34,135	)
Purchase of treasury stock		—		—			—			—			(6,172	)		(6,172	)
Issuance of equity awards		—		(4,180	)		—			—			4,639			459
Recognition of equity-based compensation		—		9,030			—			—			—			9,030
Net tax benefit related to equity compensation plans		—		732			—			—			—			732
Sale of treasury stock		—		475			—			—			315			790
Exercise of stock options				2,089			—			—			2,615			4,704
Common stock issuance for acquisition		—		112,635			—			—			67,102			179,737

Balance – September 30, 2015	$	55,057	$	1,015,383		$	1,016,206		$	26,530		$	(212,319	)	$	1,900,857

Balance - January 1, 2016	$	55,057	$	1,019,889		$	1,033,990		$	(3,718	)	$	(211,524	)	$	1,893,694
Total comprehensive income							115,867			46,230			—			162,097
Cash dividends ($0.735 per share)		—		—			(36,388	)		—			—			(36,388	)
Purchase of treasury stock		—		—			—			—			(14,189	)		(14,189	)
Issuance of equity awards		—		(3,373	)		—			—			3,802			429
Recognition of equity-based compensation		—		8,253			—			—			—			8,253
Sale of treasury stock		—		362			—			—			474			836
Exercise of stock options		—		2,400			—			—			7,014			9,414
Cumulative effect adjustment (1)		—		1,338			(856	)		—			—			482

Balance – September 30, 2016	$	55,057	$	1,028,869		$	1,112,613		$	42,512		$	(214,423	)	$	2,024,628


	September 30, 2016
PCI Loans:
Contractual cash flows	$	1,224
Non-accretable difference		(152	)
Accretable yield		(37	)

Loans accounted for under ASC 310-30	$	1,035


	December 31, 2015
	30-89 Days Past Due and Accruing		Greater than 90 Days Past Due and Accruing		Non- Accrual Loans		Total Past Due		PCI Loans		Current		Total Loans
Loans
Commercial:
Commercial	$	5,821	$	2,823	$	43,841	$	52,485	$	—	$	4,153,251	$	4,205,736
Asset-based		—		—		—		—		—		219,244		219,244
Factoring		—		—		—		—		—		90,686		90,686
Commercial – credit card		614		24		13		651		—		124,710		125,361
Real estate:
Real estate – construction		1,828		548		331		2,707		—		413,861		416,568
Real estate – commercial		2,125		1,630		9,578		13,333		1,055		2,648,384		2,662,772
Real estate – residential		612		35		800		1,447		—		490,780		492,227
Real estate – HELOC		129		—		3,524		3,653		—		726,310		729,963
Consumer:
Consumer – credit card		2,256		2,089		468		4,813		—		286,757		291,570
Consumer – other		5,917		175		2,597		8,689		2,001		144,087		154,777
Leases		—		—		—		—		—		41,857		41,857

Total loans	$	19,302	$	7,324	$	61,152	$	87,778	$	3,056	$	9,339,927	$	9,430,761


	Commercial				Asset-based				Factoring
	March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016
Non-watch list	$	4,162,814	$	4,043,704	$	204,616	$	198,695	$	157,777	$	139,358
Watch		110,167		99,815		—		—		—		—
Special Mention		53,652		32,240		19,476		24,809		503		129
Substandard		229,728		235,047		6,771		2,374		393		415

Total	$	4,556,361	$	4,410,806	$	230,863	$	225,878	$	158,673	$	139,902


	Three Months Ended March 31, 2017
	Commercial			Real estate			Consumer			Leases			Total
Allowance for loan losses:
Beginning balance	$	71,657		$	10,569		$	9,311		$	112		$	91,649
Charge-offs		(5,981	)		(186	)		(2,537	)		—			(8,704	)
Recoveries		698			61			619			—			1,378
Provision		6,823			68			2,117			(8	)		9,000

Ending balance	$	73,197		$	10,512		$	9,510		$	104		$	93,323

Ending balance: individually evaluated for impairment	$	8,173		$	67		$	—		$	—		$	8,240
Ending balance: collectively evaluated for impairment		65,024			10,445			9,510			104			85,083
Loans:
Ending balance: loans	$	5,100,988		$	5,262,356		$	355,209		$	38,683		$	10,757,236
Ending balance: individually evaluated for impairment		69,314			18,136			33			—			87,483
Ending balance: collectively evaluated for impairment		5,031,674			5,244,220			355,176			38,683			10,669,753


	Three Months Ended September 30, 2015
	Commercial			Real estate			Consumer			Leases			Total
Allowance for loan losses:
Beginning balance	$	59,378		$	8,892		$	9,288		$	163		$	77,721
Charge-offs		(1,124	)		(68	)		(2,263	)		—			(3,455	)
Recoveries		488			133			643			—			1,264
Provision		540			448			1,525			(13	)		2,500

Ending balance	$	59,282		$	9,405		$	9,193		$	150		$	78,030


	Nine Months Ended September 30, 2015
	Commercial			Real estate			Consumer			Leases			Total
Allowance for loan losses:
Beginning balance	$	55,349		$	10,725		$	9,921		$	145		$	76,140
Charge-offs		(4,624	)		(168	)		(7,413	)		—			(12,205	)
Recoveries		1,387			225			1,983			—			3,595
Provision		7,170			(1,377	)		4,702			5			10,500

Ending balance	$	59,282		$	9,405		$	9,193		$	150		$	78,030

Ending balance: individually evaluated for impairment	$	2,504		$	305		$	31		$	—		$	2,840
Ending balance: collectively evaluated for impairment		56,778			9,100			9,162			150			75,190
Loans:
Ending balance: loans	$	4,555,783		$	4,052,470		$	397,487		$	40,386		$	9,046,126
Ending balance: individually evaluated for impairment		52,450			8,957			3,365			—			64,772
Ending balance: collectively evaluated for impairment		4,500,836			4,041,244			391,798			40,386			8,974,264
Ending balance: PCI Loans		2,497			2,269			2,324			—			7,090


	As of March 31, 2017
	Unpaid Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial:
Commercial	$	73,412	$	44,560	$	24,754	$	69,314	$	8,173	$	71,831
Asset-based		—		—		—		—		—		—
Factoring		—		—		—		—		—		—
Commercial – credit card		—		—		—		—		—		—
Real estate:
Real estate – construction		220		93		111		204		67		249
Real estate – commercial		16,902		11,866		954		12,820		—		12,805
Real estate – residential		125		125		—		125		—		178
Real estate – HELOC		—		—		—		—		—		—
Consumer:
Consumer – credit card		—		—		—		—		—		—
Consumer – other		37		33		—		33		—		17
Leases		—		—		—		—		—		—

Total	$	90,696	$	56,677	$	25,819	$	82,496	$	8,240	$	85,080


	Three Months Ended September 30, 2016						Nine Months Ended September 30, 2016
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Commercial:
Commercial		1	$	12,721	$	12,721		3	$	24,778	$	24,778
Asset-based		—		—		—		—		—		—
Factoring		—		—		—		—		—		—
Commercial – credit card		—		—		—		—		—		—
Real estate:
Real estate – construction		—		—		—		—		—		—
Real estate – commercial		—		—		—		—		—		—
Real estate – residential		—		—		—		—		—		—
Real estate – HELOC		—		—		—		—		—		—
Consumer:
Consumer – credit card		—		—		—		—		—		—
Consumer – other		—		—		—		—		—		—
Leases		—		—		—		—		—		—

Total		1	$	12,721	$	12,721		3	$	24,778	$	24,778


	Bank		Institutional Investment Management		Asset Servicing		Total
Balances as of January 1, 2017	$	161,391	$	47,529	$	19,476	$	228,396

Balances as of March 31, 2017	$	161,391	$	47,529	$	19,476	$	228,396

Balances as of January 1, 2016	$	161,341	$	47,529	$	19,476	$	228,346
Acquisition of Marquette Financial Companies		50		—		—		50

Balances as of December 31, 2016	$	161,391	$	47,529	$	19,476	$	228,396


For the three months ending December 31, 2016	$	2,928
For the year ending December 31, 2017		10,180
For the year ending December 31, 2018		7,202
For the year ending December 31, 2019		5,822
For the year ending December 31, 2020		4,487
For the year ending December 31, 2021		3,101


For the nine months ending December 31, 2017	$	7,311
For the year ending December 31, 2018		7,202
For the year ending December 31, 2019		5,822
For the year ending December 31, 2020		4,487
For the year ending December 31, 2021		3,101
For the year ending December 31, 2022		2,036


	Fair Value May 31, 2015
Assets
Loans	$	980,404
Investment securities		177,694
Cash and due from banks		95,351
Premises and equipment, net		11,508
Identifiable intangible assets		14,881
Other assets		32,336

Total assets acquired		1,312,174

Liabilities
Noninterest-bearing deposits		226,161
Interest-bearing deposits		708,675
Short-term debt		112,133
Long-term debt		89,971
Other liabilities		14,135

Total liabilities assumed		1,151,075

Net identifiable assets acquired		161,099
Goodwill acquired		18,638

Net assets acquired	$	179,737

Consideration:
Company’s common shares issued		3,470
Purchase price per share of the Company’s common stock	$	51.79

Fair value of total consideration transferred	$	179,737


	Asset Derivatives				Liability Derivatives
Fair value	March 31, 2017		December 31, 2016		March 31, 2017		December 31, 2016
Interest Rate Products:
Derivatives not designated as hedging instruments	$	9,801	$	10,555	$	5,290	$	10,581
Derivatives designated as hedging instruments		238		318		284		748

Total	$	10,039	$	10,873	$	5,574	$	11,329


	Amount of Loss Recognized in Other Comprehensive Income on Derivatives (Effective Portion)
	For the Three Months Ended					For the Nine Months Ended
Derivatives in Cash Flow Hedging Relationships	September 30, 2016			September 30, 2015		September 30, 2016			September 30, 2015
Interest rate products
Derivatives designated as cash flow hedging instruments	$	(643	)	$	—	$	(7,677	)	$	—

Total	$	(643	)	$	—	$	(7,677	)	$	—


	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) For the Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships	2017		2016
Interest rate products
Derivatives designed as cash flow hedging instruments	$	246	$	(4,140	)

Total	$	246	$	(4,140	)


	Fair Value Measurement at December 31, 2015
Description	December 31, 2015		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	$	400	$	400	$	—	$	—
U.S. Agencies		1,309		—		1,309		—
State and political subdivisions		10,200		—		10,200		—
Trading - other		17,708		17,708		—		—

Trading securities		29,617		18,108		11,509		—

U.S. Treasury		349,779		349,779		—		—
U.S. Agencies		666,389		—		666,389		—
Mortgage-backed		3,572,446		—		3,572,446		—
State and political subdivisions		2,138,413		—		2,138,413		—
Corporates		79,922		79,922		—		—

Available for sale securities		6,806,949		429,701		6,377,248		—
Company-owned life insurance		31,205		—		31,205		—
Bank-owned life insurance		202,991		—		202,991		—
Derivatives		12,303		—		12,303		—

Total	$	7,083,065	$	447,809	$	6,635,256	$	—

Liabilities
Deferred compensation	$	32,937	$	32,937	$	—	$	—
Contingent consideration liability		17,718		—		—		17,718
Derivatives		12,258		—		12,258		—

Total	$	62,913	$	32,937	$	12,258	$	17,718


	Fair Value Measurement as of December 31, 2016
Description	December 31, 2016		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	$	—	$	—	$	—	$	—
U.S. Agencies		1,306		—		1,306		—
Mortgage-backed		313		—		313		—
State and political subdivisions		9,295		—		9,295		—
Trading - other		28,622		28,495		127		—

Trading securities		39,536		28,495		11,041		—

U.S. Treasury		93,826		93,826		—		—
U.S. Agencies		198,177		—		198,177		—
Mortgage-backed		3,711,699		—		3,711,699		—
State and political subdivisions		2,395,757		—		2,395,757		—
Corporates		66,875		66,875		—		—

Available for sale securities		6,466,334		160,701		6,305,633		—
Company-owned life insurance		41,333		—		41,333		—
Bank-owned life insurance		209,686		—		209,686		—
Derivatives		10,873		—		10,873		—

Total	$	6,767,762	$	189,196	$	6,578,566	$	—

Liabilities
Deferred compensation	$	42,797	$	42,797	$	—	$	—
Derivatives		11,329		—		11,329		—

Total	$	54,126	$	42,797	$	11,329	$	—


	Three Months Ended September 30,
	2016						2015
	Average Balance			Average Yield/Rate			Average Balance			Average Yield/Rate
Assets
Loans, net of unearned interest	$	10,181,819			3.86	%	$	8,933,775			3.76	%
Securities:
Taxable		4,449,485			1.52			4,750,122			1.54
Tax-exempt		3,158,966			2.86			2,557,629			2.70

Total securities		7,608,451			2.08			7,307,751			1.95
Federal funds and resell agreements		217,287			1.45			83,048			0.84
Interest-bearing due from banks		314,619			0.56			481,575			0.39
Other earning assets		51,280			1.75			36,171			1.04

Total earning assets		18,373,456			3.03			16,842,320			2.86
Allowance for loan losses		(86,368	)					(78,419	)
Other assets		1,405,152						1,356,548

Total assets	$	19,692,240					$	18,120,449

Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	9,431,253			0.20	%	$	8,532,814			0.18	%
Federal funds and repurchase agreements		2,261,863			0.33			1,634,394			0.10
Borrowed funds		82,340			3.64			88,468			4.68

Total interest-bearing liabilities		11,775,456			0.25			10,255,676			0.21
Noninterest-bearing demand deposits		5,690,838						5,800,870
Other liabilities		203,953						176,040
Shareholders’ equity		2,021,993						1,887,863

Total liabilities and shareholders’ equity	$	19,692,240					$	18,120,449

Net interest spread					2.78	%					2.65	%
Net interest margin					2.87						2.73	��


Period	(a) Total Number of Shares (or Units) Purchased		(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
July 1-July 31, 2016		4,546		55.77		4,546		1,983,274

August 1-August 31, 2016		5,214		56.77		5,214		1,978,060

September 1-September 30, 2016		990		59.39		990		1,977,070

Total		10,750	$	56.59		10,750


Period	(a) Total Number of Shares (or Units) Purchased		(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
January1-January 31, 2017		19,183	$	75.46		19,183		1,927,453

February1-February 28, 2017		32,651		77.03		32,651		1,894,802

March1-March 31, 2017		855		76.98		855		1,893,947

Total		52,689	$	76.46		52,689



3.1		Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the ~~Registrant’s~~Company’s Quarterly Report on Form10-Q for the quarter ended March 31, 2006 and filed with the Commission on May 9, 2006).

3.2		Bylaws, ~~(incorporated~~amended as of October 28, 2014 incorporated by reference to Exhibit ~~3.2~~3.1 to the ~~Registrant’s Quarterly~~Company’s Current Report on Form ~~10-Q~~8-K and filed with the Commission on ~~August 2, 2016).~~

~~10.1~~		Employment Offer Letter between the UMB Financial Corporation and Ram Shankar dated July 26, 2016 (incorporated by reference to Exhibit 99.3 to the Registrant’s Current Report on Form 8-K filed with the Commission on July 26, 2016).

~~10.2~~		UMB Relocation Assistance Agreement between UMB Bank, N.A and Ram Shankar dated July 26, 2016 (incorporated by reference to Exhibit 99.4 of the Registrant’s Current Report on Form 8-K filed with the Commission on July 26, 2016).November 3, 2014.

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 filed herewith.

101.SCH		XBRL Taxonomy Extension Schema filed herewith.

101.CAL		XBRL Taxonomy Extension Calculation filed herewith.

101.DEF		XBRL Taxonomy Extension Definition filed herewith.

101.LAB		XBRL Taxonomy Extension Labels filed herewith.

101.PRE		XBRL Taxonomy Extension Presentation filed herewith.


		UMB FINANCIAL CORPORATION

		/s/ Brian J. Walker

Brian J. Walker

Chief Accounting Officer

~~Date: November 1, 2016~~		Date: May 2, 2017

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