Financial Analysis

"13. Acquisition On January 31, 2025 (Acquisition Date), the Company acquired all of the outstanding stock of Heartland Financial USA, Inc., a Delaware corporation (HTLF), in an all-stock transaction, issuing a total of 23.6 million shares of the Companys common stock and 4.6 million depositary shares, each representing a 1/400th interest in a share of the Companys 7.00 % Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A (the Series A preferred stock). Pursuant to the Agreement and Plan of Merger, dated as of April 28, 2024 , (i) HTLF merged with and into the Company, with the Company continuing as the surviving corporation and (ii) one day after the closing date of the acquisition of HTLF by the Company, HTLFs wholly owned bank subsidiary, a Colorado-chartered bank (HTLF Bank), merged with and into UMB Bank, National Association, the Companys national bank subsidiary (the Bank), with the Bank continuing as the surviving bank. Total consideration for the acquisition was $ 2.9 billion, consisting of the Companys common stock valued at $ 2.8 billion (based on the Companys common stock price of $ 117.90 ) and the Companys Series A preferred stock valued at $ 115.2 million (based on the Companys Series A preferred stock price of $ 25.05 ) as of close of business on the Acquisition Date. Each HTLF common stock share was converted into 0.55 shares of the Companys common stock. Each HTLF preferred stock share was converted into a share of the Companys Series A pref …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

10. Commitments, Contingencies and Guarantees In the normal course of business, the Company is a party to financial instruments with off-balance-sheet risk in order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, commercial letters of credit, standby letters of credit, and futures contracts. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets. The contractual or notional amount of those instruments reflects the extent of involvement the Company has in particular classes of financial instruments. Many of the commitments expire without being drawn upon; therefore, the total amount of these commitments does not necessarily represent the future cash requirements of the Company. The Companys 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 contractual or notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The following table summarizes the Companys off-balance sheet financial instruments as described above (in thousands): Contractual or Notional Amount June 30, …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

7. Borrowed Funds The components of the Companys borrowed funds are as follows (in thousands) : June 30, 2026 December 31, 2025 Long-term debt: Trust preferred securities $ 222,345 $ 220,034 Subordinated notes 6.25 %, net of issuance costs 109,468 109,255 Subordinated notes 2.75 % 148,313 144,940 Total long-term debt 480,126 474,229 Total borrowed funds $ 480,126 $ 474,229 The following table presents details of outstanding trust preferred securities as of June 30, 2026 (in thousands): Amount Outstanding Issuance Date Interest Rate Interest Rate as of June 30, 2026 Maturity Date Marquette Capital Trust I $ 19,517 12/28/2005 1.33 % over 3-month term SOFR 5.26 % 1/7/2036 Marquette Capital Trust II 19,974 12/28/2005 1.33 % over 3-month term SOFR 5.26 % 1/7/2036 Marquette Capital Trust III 7,841 5/30/2006 1.50 % over 3-month term SOFR 5.46 % 6/23/2036 Marquette Capital Trust IV 31,616 6/30/2006 1.60 % over 3-month term SOFR 5.53 % 9/15/2036 Heartland Financial Statutory Trust IV 9,755 3/17/2004 2.75 % over 3-month term SOFR 6.68 % 3/17/2034 Heartland Financial Statutory Trust V 17,717 1/27/2006 1.33 % over 3-month term SOFR 5.26 % 4/7/2036 Heartland Financial Statutory Trust VI 17,153 6/21/2007 1.48 % over 3-month term SOFR 5.41 % 9/15/2037 Heartland Financial Statutory Trust VII 15,008 6/26/2007 1.48 % over 3-month term SOFR 5.40 % 9/1/2037 Morrill Statutory Trust I 10,054 12/19/2002 3.25 % over 3-month term SOFR 7.26 % 12/26/2032 Morrill Statutory Trust II 9,819 12/17/2003 2.85 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

12. Fair Value Measurements The following table presents information about the Companys assets and liabilities measured at fair value on a recurring basis as of June 30, 2026, and December 31, 2025, 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 June 30, 2026 and December 31, 2025 (in thousands): Fair Value Measurement at June 30, 2 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

6. Goodwill and Other Intangibles Changes in the carrying amount of goodwill for the periods ended June 30, 2026 and December 31, 2025 by reportable segment are as follows (in thousands): Commercial Banking Institutional Banking Personal Banking Total Balances as of January 1, 2026 $ 1,042,577 $ 76,492 $ 720,756 $ 1,839,825 Acquisition of HTLF ( 1,339 ) ( 892 ) ( 2,231 ) Balances as of June 30, 2026 $ 1,041,238 $ 76,492 $ 719,864 $ 1,837,594 Balances as of January 1, 2025 $ 63,113 $ 76,492 $ 67,780 $ 207,385 Acquisition of HTLF 979,464 652,976 1,632,440 Balances as of December 31, 2025 $ 1,042,577 $ 76,492 $ 720,756 $ 1,839,825 The following table lists the finite-lived intangible assets that continue to be subject to amortization as of June 30, 2026 and December 31, 2025 (in thousands) : As of June 30, 2026 Core Deposit Intangible Assets Customer Relationships Total Gross carrying amount $ 481,294 $ 124,085 $ 605,379 Accumulated amortization 120,819 44,611 165,430 Net carrying amount $ 360,475 $ 79,474 $ 439,949 As of December 31, 2025 Core Deposit Intangible Assets Customer Relationships Total Gross carrying amount $ 481,294 $ 124,085 $ 605,379 Accumulated amortization 81,203 37,307 118,510 Net carrying amount $ 400,091 $ 86,778 $ 486,869 Related to the acquisition of HTLF, the Company recognized an adjustment of $ 2.2 million to goodwill during the period ended June 30, 2026. During 2025, the Company recognized $ 1.6 billion of goodwill, a $ 474.1 million core deposit inta …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

9. Revenue Recognition The following is a description of the principal activities from which the Company generates revenue that are within the scope of ASC 606, Revenue from Contracts with Customers : Trust and securities processing Trust and securities processing income consists of fees earned on personal and corporate trust accounts, custody of securities services, trust investments and wealth management services, and mutual fund and alternative asset servicing. The performance obligations related to this revenue include items such as performing full bond trustee service administration, investment advisory services, custody and record-keeping services, and fund administrative and accounting services. These fees are part of long-term contractual agreements and the performance obligations are satisfied upon completion of service and fees are generally a fixed flat monthly rate or based on a percentage of the accounts market value per the contract with the customer. These fees are primarily recorded within the Companys Institutional and Personal Banking segments. Trading and investment banking Trading and investment banking income consists of income earned related to the Companys trading securities portfolio, including futures hedging, dividends, bond underwriting, and other securities incomes. The vast majority of this revenue is recognized in accordance with ASC 320, InvestmentsDebt Securities , and ASC 321, InvestmentsEquity Securities , and is out of the scope of ASC 606. …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

8. Business Segment Reporting The Company has strategically aligned its operations into the following three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking (collectively, the Business Segments, and each, a Business Segment). These segments reflect the type of customer served, how products and services are provided, how executive management responsibilities are assigned, and reflect the manner in which financial information is evaluated by the chief operating decision maker (CODM). The Companys CODM is comprised of a group of senior executive officers led by the Companys chief executive officer, chief administrative officer, chief financial officer, and the Banks chief executive officer. Business Segment financial information is produced using an internal reporting system which is based on a series of management estimates for funds transfer pricing (FTP), and allocations of noninterest expense and income taxes. The process for determining FTP is based on a number of factors and assumptions, including prevailing market interest rates, the expected lives of various assets and liabilities, and the Companys broader funding profile. These estimates and allocations are periodically reviewed and refined. The CODM uses the Business Segment net income in deciding how to allocate resources and assess performance for individual Business Segments, including evaluating the cost or opportunity value of funds within each Business Segment and identifying a …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2. Summary of Significant Accounting Policies 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 Form 10-K. Business Combinations The Company accounts for business combinations using the purchase method of accounting in accordance with FASB ASC Topic 805, Business Combinations , which requires assets acquired and liabilities assumed to be recognized at fair value as of the acquisition date. On January 31, 2025 (Acquisition Date), the Company acquired Heartland Financial USA, Inc. (HTLF) pursuant to an Agreement and Plan of Merger, dated as of April 28, 2024 . See Note 13, Acquisition for additional information. Cash and cash equivalents Cash and cash equivalents includes Cash and due from banks and amounts due from the Federal Reserve Bank (FRB). Cash on hand, cash items in the process of collection, and amounts due from correspondent banks a …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing