Fitch Ratings Affirms UMB Financial at 'A+'; Outlook Remains Negative.

CHICAGO -- Fitch Ratings has affirmed the long-term, short-term, and individual ratings of UMB Financial Corporation (UMBF; 'A+/F1+') and its principal banking subsidiary. The Rating Outlook remains Negative. A complete list of ratings follows at the end of this release.

The affirmation of UMBF's ratings conveys the level of financial strength provided by UMBF's low risk balance sheet. The company's strong capital levels, good liquidity, solid asset quality, and ample reserves sufficiently compensate for its profitability challenges. Fitch believes the company's very strong capital and good liquidity also provide it time to achieve profitability measures closer to those of similarly rated institutions. Tangible common equity exceeded 11% of tangible assets at Sept. 30, 2004. UMBF uses much less leverage than most other banks, and has no debt outstanding.

The maintenance of the Negative Rating Outlook at this time reflects UMBF's continued weak earnings performance and its current transition period as the company seeks to fill the Chief Financial Officer position. After earning just a 0.82% return on assets (ROA) in 2003, the company has generated a 0.60% ROA through the first three quarters of 2004. UMBF's very short-term balance sheet has made it particularly vulnerable to compression in net interest income (NIM) during the protracted period of record low interest rates. However, efforts by management to reposition the balance sheet and reduce expenses are beginning to take hold. After hitting a low of 2.85% in first-quarter 2004 (1Q04), the NIM improved 31 bps in 2Q04 and ticked up 1 bp in 3Q04. UMBF is positioned to benefit from a rising rate environment and the NIM should continue to recover as rates rise.

Management has also evaluated the profitability of each branch and business segment and is executing strategies to prune its retail branch network and exit unprofitable businesses. However, progress in implementation has not been fast. The franchise is saddled with many low performing and unprofitable branches, and Fitch expects that the rationalization of the company's retail branch network may be gradual. In May 2004, UMBF sold its employee benefits business after determining it did not achieve the scale necessary to make the business profitable. The mix of UMBF's franchise includes meaningful operations in several other fee-based businesses that should boost return levels as greater scale leads to operating leverage, such as mutual fund servicing, trust, and correspondent banking. Good revenue diversification is a strength for UMBF, and will represent an even stronger factor in its rating profile should greater scale be amassed in these fee-based businesses.

Fitch believes that internal profitability reporting is sufficient for management and the Board to make informed decisions. UMBF's growth plans target fee-based businesses and commercial and home equity lending in metropolitan markets such as Kansas City, Denver, Colorado Springs, St. Louis, and Omaha. Fitch believes that earnings performance should gradually improve over the medium and long-term based on an improving NIM, increasing fee income, and good expense control. Fitch will be reviewing recent and pending management changes in the next few quarters with an emphasis on the CFO position which is in the process of being filled. If UMBF achieves modest improvement in core earnings over the next few quarters and Fitch's management review indicates the company is committed to both efficiency improvements and its historical conservative operating philosophy, Fitch is likely to affirm UMBF's current ratings with a Stable Rating Outlook.

The following ratings for UMBF and its principal subsidiary are affirmed by Fitch with a Negative Rating Outlook:

UMB Financial Corporation

--Long-term counterparty rating, 'A+';

--Short-term nondeposits, 'F1+';

--Individual rating, 'B';

--Support, '5'.

UMB Bank, National Association

--Long-term deposits, 'AA-';

--Long-term counterparty rating, 'A+';

--Short-term deposits, 'F1+';

--Short-term nondeposits, 'F1+';

--Individual rating, 'B';

--Support, '5'.