Businessweek

UMB Financial Corporation operates as a multi-bank holding company. The company offers a range of banking and other financial services to its customers through its branches and offices in the states of Missouri, Kansas, Colorado, Illinois, Oklahoma, Arizona, Nebraska, Pennsylvania, South Dakota, Indiana, Wisconsin, Utah, New Jersey, and Massachusetts. Subsidiaries The company’s principal subsidiary bank, UMB Bank, n.a., whose principal office is in Missouri. The company offers a range of banking services to commercial, retail, government and correspondent bank customers. In addition to standard banking functions, UMB Bank, n.a., provides commercial and retail banking services, including investment and cash management services and a range of trust activities for individuals, estates, business corporations, governmental bodies and public authorities. Subsidiaries of the company include mutual fund and alternative investment services groups, single-purpose companies that deal with brokerage services and insurance and Scout Investments, offering equity and fixed income investment strategies for institutions and individual investors. UMB Fund Services, Inc. provides services to mutual fund groups representing funds and managed account services to asset management groups. In addition, JD Clark & Co., Inc. provides services to alternative investment groups. Scout Investments, Inc. is an institutional asset management company. Scout Investments, Inc. offers domestic and international equity investments through Scout Asset Management and fixed income investments through Reams Asset Management. Prairie Capital Management, LLC operates as a wealth management consulting firm and serves as investment manager to proprietary pooled investment vehicles, including traditional diversified equity funds, hedge funds, and private equity funds. Segments The company operates in the following three segments: Commercial Financial Services, Institutional Financial Services, and Personal Financial Services. Commercial Financial Services serves the commercial lending and leasing, capital markets, and treasury management needs of the company’s mid-market businesses and governmental entities by offering various products and services. Such services include commercial loans, letters of credit, loan syndication services, consultative services, and a variety of financial options for companies that need non-traditional banking services. Capital markets services include asset-based financing, asset securitization, equity and mezzanine financing, factoring, private and public placement of senior debt, as well as merger and acquisition consulting. Treasury management services include depository services, account reconciliation services, electronic fund transfer services, controlled disbursements, lockbox services, and remote deposit capture services. Institutional Financial Services is a combination of banking services, fund services, and asset management services provided to institutional clients. This segment also includes consumer and commercial credit card services in addition to healthcare services, mutual fund cash management, and international payments. Institutional Financial Services includes businesses, such as the company’s institutional investment services functions, Scout Investment Advisors, UMB Fund Services, corporate trust and escrow services, as well as correspondent banking, investment banking, and healthcare services. Products and services include bond trading transactions, cash letter collections, FiServ account processing, investment portfolio accounting and safekeeping, reporting for asset/liability management, and Fed funds transactions. UMB Fund Services provides fund administration and accounting, investor services and transfer agency, marketing and distribution, custody, and alternative investment services. Personal Financial Services combines consumer services and asset management services provided to personal clients. This segment combines the company’s consumer bank with the individual investment and wealth management solutions. The range of services offered to UMB clients extends from a basic checking account to estate planning and trust services. Products and services include the company’s bank branches, call center, Internet banking and ATM network, deposit accounts, private banking, installment loans, home equity lines of credit, residential mortgages, small business loans, brokerage services, and insurance services in addition to a full spectrum of investment advisory, trust, and custody services. Investment Portfolio As of December 31, 2011, the company’s investment portfolio included U.S. treasury; U.S. agencies; mortgage-backed; state and political subdivisions; and corporates. Supervision and Regulation The company is subject to regulation and examination by the Federal Reserve Board (FRB). Its four subsidiary banks are subject to regulation and examination by the Office of the Comptroller of the Currency (OCC). UMB Insurance, Inc. is regulated by state agencies in the states in which it operates. Scout Investments, Inc., Scout Distributors, LLC, Prairie Capital Management, LLC and UMB Fund Services, Inc. are subject to the rules and regulations of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The company is subject to various restrictions and requirements imposed by the Sarbanes-Oxley Act of 2002. The company’s brokerage affiliate, UMB Financial Services, Inc., is regulated by the SEC, FINRA, and is also subject to certain regulations of the various states in which it transacts business. The company is subject to the Bank Holding Company Act. History UMB Financial Corporation was founded in 1967.