UMB Financial Corporation Reports Third Quarter 2026 Results

UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income available to common shareholders for the third quarter of 2026 of $272.3 million, or $3.56 per diluted share, compared to $271.8 million, or $3.56 per diluted share, in the second quarter of 2026 (linked quarter) and $180.4 million, or $2.36 per diluted share, in the third quarter of 2025.

Net operating income available to common shareholders, a non-GAAP financial measure reconciled later in this release to net income available to common shareholders, the nearest comparable GAAP measure, was $272.4 million, or $3.56 per diluted share, for the third quarter of 2026, compared to $273.0 million, or $3.57 per diluted share, for the linked quarter and $206.5 million, or $2.70 per diluted share, for the third quarter of 2025. Operating pre-tax, pre-provision income (operating PTPP), a non-GAAP measure reconciled later in this release to the components of net income before taxes, the nearest comparable GAAP measure, was $373.0 million, or $4.88 per diluted share, for the third quarter of 2026, compared to $380.1 million, or $4.97 per diluted share, for the linked quarter, and $293.4 million, or $3.84 per diluted share, for the third quarter of 2025. These operating PTPP results represent a 1.8% decrease on a linked-quarter basis and a 27.2% increase compared to the third quarter of 2025.

“Our third-quarter results demonstrate the strong momentum across UMB’s diversified lines of business, reflected in robust balance sheet and fee income growth, strong asset quality metrics, and a stable net interest margin that together produced superior risk-adjusted returns,” said Mariner Kemper, UMB Financial Corporation chairman and chief executive officer.

“Gross loan production reached a record $3.1 billion during the quarter, while net loan growth, after payoffs and paydowns, totaled $1.4 billion. Average commercial and industrial loan balances increased approximately 22% on a linked-quarter annualized basis, driving an 11% annualized increase in total average loans compared with the prior quarter. Our asset quality also improved, as of September 30, 2026, nonperforming loans declined approximately $10 million to $118 million, or 28 basis points of total loans, compared to 31 basis points as of June 30, 2026.”

Kemper continued, “While persistent inflation, the conflict in the Middle East, and higher short- and long-term interest rates may create headwinds, customer sentiment and demand for business investment across our markets and business lines remain strong, as demonstrated by our record third quarter production. We believe UMB’s interest-rate-neutral balance sheet and diversified financial services model position us well to navigate the anticipated environment. This includes a continued focus on innovation and evolution, most recently demonstrated in our Fund Services division with the continued expansion of its exchange-traded fund (ETF) servicing business, which now offers a fully in-house operating model that provides asset managers with flexible ETF servicing solutions and seamless support.”

“We remain focused on growing both sides of the balance sheet, maintaining a consistent net interest spread, preserving strong asset quality, and continued momentum in our fee businesses.”

Third quarter 2026 earnings discussion

Note: The acquisition of Heartland Financial USA, Inc. (HTLF) closed on January 31, 2025; as such, financial results for the fiscal periods since that date include the impact from the acquired operations. Financial results for the year-to-date 2025 include only eight months of impact of the acquired operations of HTLF.

Net interest income

• Third quarter 2026 net interest income totaled $540.0 million, an increase of $7.5 million, or 1.4%, from the linked quarter, driven primarily by strong balance sheet growth, stable net interest margin, the benefit of an additional day in the quarter, and the net impact of higher short-term interest rates.

• Average earning assets increased $327.6 million, or 0.5%, from the linked quarter, largely driven by an increase of $1.1 billion in average loans, partially offset by decreases of $539.4 million in average interest-bearing due from banks and $203.2 million in average securities.

• Average interest-bearing liabilities increased $1.1 billion, or 2.3%, from the linked quarter, primarily driven by an increase of $1.5 billion, or 3.6%, in interest-bearing deposits, partially offset by a decrease of $415.7 million, or 11.8%, in federal funds and repurchase agreements.

• Net interest margin for the third quarter was 3.32%, which is flat as compared to the linked quarter.

• On a year-over-year basis, net interest income increased $65.0 million, or 13.7%, driven by increases of $4.6 billion, or 12.4%, in average loans and $722.9 million, or 3.8%, in average securities, as well as favorable repricing of deposits in conjunction with lower short-term interest rates. These increases were partially offset by a decrease of $3.1 billion, or 49.0%, in average interest-bearing due from banks and $7.5 million in lower purchase accounting accretion income.

• Average deposits increased 2.6% compared to the third quarter of 2025. Average interest-bearing deposits increased 3.5%, and noninterest-bearing demand deposit balances decreased 0.3% compared to the third quarter of 2025. Average demand deposit balances comprised 23.7% of total deposits in the third quarter of 2026, compared to 25.5% in the linked quarter and 24.4% in the third quarter of 2025.

Noninterest income

• Third quarter 2026 noninterest income decreased $13.1 million, or 5.3%, on a linked-quarter basis, largely due to:
  • A net decrease of $16.1 million in investment securities gains driven by a $17.9 million gain on the sale of a non-marketable security in the second quarter of 2026. This decrease was partially offset by increases of $1.0 million in valuation of the company’s non-marketable securities and an increase of $0.9 million in valuation and gains on sales of the company’s marketable securities.

  • A decrease of $2.8 million in other income driven by:
    • A $7.0 million decrease in company-owned life insurance income, recorded in other income. The decrease in company-owned life insurance income was offset by a proportionate decrease in deferred compensation noted below.

    • This decrease was partially offset by a $1.8 million gain on the sale of a building in the third quarter, a $0.8 million increase in derivative income, a $0.5 million increase in bank-owned life insurance income, and a $0.4 million increase in gains recorded for recoveries of loans previously charged off by HTLF.

  • The decreases noted above were partially offset by increases of $4.8 million in fund services income and $0.6 million in corporate trust income, both recorded in trust and securities processing.

• Compared to the prior year, noninterest income in the third quarter of 2026 increased $29.1 million, or 14.3%, primarily driven by:
  • An increase of $16.1 million in trust and securities processing driven by increases of $12.0 million in fund services income, $2.9 million in corporate trust income, and $1.2 million in trust income.

  • An increase of $15.1 million in investment securities gains due to increases of $7.2 million in valuation of the company’s non-marketable securities, as well as $7.1 million in net losses on the company’s marketable securities during the third quarter of 2025.

  • An increase of $3.7 million in brokerage income due to higher 12b-1 fees and money market income.

  • These increases were offset by a $6.1 million decline in other income, including a $5.5 million decrease in company-owned life insurance income and a $2.0 million decrease in bank-owned life insurance income. These decreases were partially offset by an increase of $1.3 million in syndication income. The decrease in company-owned life insurance income was offset by a proportionate decrease in deferred compensation as noted below.

Noninterest expense

• GAAP noninterest expense for the third quarter of 2026 was $399.5 million, a decrease of $0.2 million, from the linked quarter and $19.8 million, or 4.7%, from the third quarter of 2025. Third quarter 2026 expenses included $0.1 million in total acquisition-related and other nonrecurring costs, compared to $1.7 million in the linked quarter and $35.6 million in the third quarter of 2025. Operating noninterest expense, a non-GAAP financial measure reconciled later in this release to noninterest expense, the nearest comparable GAAP measure, was $399.3 million for the third quarter of 2026, an increase of $1.4 million, or 0.3%, from the linked quarter and an increase of $14.4 million, or 3.7%, from the third quarter of 2025.

• The linked-quarter decrease in GAAP noninterest expense was driven by:
  • A decrease of $5.9 million in salaries and employee benefits expense driven by a $10.6 million decrease in employee benefits, offset by an increase of $4.7 million in salary and bonus expense. The decrease in employee benefits was due to a decrease of $10.1 million in deferred compensation expense. The increase in salary and bonus expense was due to higher salary expense related to annual merit increases and increased bonus expense related to company performance. The decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.

  • This decrease was partially offset by the following increases:
    • Increases of $2.2 million in supplies and services expense due to increased computer hardware expense and $1.9 million in occupancy related to increased building and utilities expenses.

    • An increase of $1.4 million in marketing and business development expense, driven by the timing of multiple advertising campaigns.

• The year-over-year decrease in GAAP noninterest expense was driven by:
  • A decrease of $12.6 million in other expense driven by $19.2 million in fees for termination of legacy HTLF contracts in the third quarter of 2025, partially offset by increases of $2.3 million in charitable contribution expense, $1.6 million in operational losses, and $1.5 million in expense on other real estate owned.

  • A decrease of $6.7 million in legal and consulting expense, which included $0.1 million in non-recurring transaction costs as compared to $9.2 million of non-recurring transaction costs in the third quarter of 2025.

  • Decreases of $2.8 million in supplies and services expense due to the printing and mailing of conversion notices to customers during the third quarter of 2025, and $2.5 million in equipment expense driven by a decline in software costs.

  • These decreases were partially offset by the following increases:
    • An increase of $4.2 million in marketing and business development expense, driven by the timing of multiple advertising campaigns and increased travel and entertainment expense.

    • An increase of $0.9 million in salaries and employee benefits expense driven by higher salary expense related to annual merit increases and increased bonus expense related to company performance, partially offset by a decrease of $7.2 million in deferred compensation expense. The decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.

• Third quarter 2026 noninterest expense included $0.1 million in total acquisition-related and other nonrecurring costs, compared to $1.7 million in the linked quarter and $35.6 million in the third quarter of 2025. During the third quarter of 2026, this expense was composed primarily of legal and consulting expense. During the linked quarter, the expense was composed primarily of $1.7 million in legal and consulting expense. During the third quarter of 2025, acquisition-related expense was primarily composed of $19.6 million in other expense, predominately for contract termination fees as discussed above, $9.2 million in legal and consulting expense, $4.5 million in salaries and employee benefits, and $3.5 million in supplies and services expense.

Income taxes

• The company’s effective tax rate was 20.2% for the nine months ended September 30, 2026, compared to 19.4% for the same period in 2025. The increase is mainly due to more favorable discrete tax items in 2025, including a benefit from remeasuring deferred tax assets after the HTLF acquisition increased the state marginal tax rate. Additionally, a smaller proportion of pre-tax income in 2026 was earned from tax-exempt municipal securities.

Balance sheet

• Average total assets for the third quarter of 2026 were $70.8 billion compared to $70.4 billion for the linked quarter and $68.5 billion for the same period in 2025.

• Average loans for the third quarter of 2026 increased $1.1 billion, or 2.8%, on a linked-quarter basis and $4.6 billion, or 12.4%, compared to the third quarter of 2025. These increases reflect continued organic momentum across all geographies.

• Average total securities decreased 1.0% on a linked-quarter basis and increased 3.8% compared to the third quarter of 2025.

• Average deposits increased 1.1% on a linked-quarter basis and increased 2.6% compared to the third quarter of 2025. Average noninterest-bearing demand deposits declined 6.1% from the linked quarter reflecting expected seasonal disbursements within the institutional banking segment.

Capital

• At September 30, 2026, the regulatory capital ratios presented in the foregoing table exceeded all “well-capitalized” regulatory thresholds.

• In mid-September 2026, the company redeemed the $150.0 million in outstanding 2.75% fixed-to-floating rate subordinated notes due in 2031.

Asset Quality

• Provision for credit losses for the third quarter of 2026 increased $3.0 million from the linked quarter and $8.5 million from the third quarter of 2025. The change in provision expense reflected continued loan growth, ongoing recalibration of econometric loss models, and general portfolio trends in the current periods as compared to the prior periods.

• Net charge-offs for the third quarter totaled $14.0 million, or 0.13% of average loans, compared to $15.9 million, or 0.16% of average loans in the linked quarter, and $18.4 million, or 0.20% of average loans for the third quarter of 2025. Nonperforming loans declined 7.6% to $117.9 million and comprised 28 basis points of total loans, compared to 31 basis points at June 30, 2026.

Conference Call

The company will host a conference call to discuss its third quarter 2026 earnings results on Wednesday, October 28, 2026, at 8:30 a.m. (CT) / 9:30 a.m. (ET).

Interested parties may access the call by dialing (toll-free) 833-461-5787 or (international) 585-542-9983 and requesting to join the UMB Financial call with conference ID 376 166 699. The live webcast may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 3Q 2026 Conference Call

A replay of the conference call may be heard through November 11, 2026, by calling (toll-free) 833-309-1852 or (international) 929-828-5978. The replay access code required for playback is 376 166 699. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial Information

In this release, we provide information about net operating income available to common shareholders, operating earnings per share – diluted (operating EPS), operating return on average common equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, operating efficiency ratio, operating pre-tax, pre-provision income (operating PTPP), operating pre-tax, pre-provision earnings per share – diluted (operating PTPP EPS), operating pre-tax, pre-provision income on a fully tax equivalent basis (operating PTPP-FTE), operating pre-tax, pre-provision FTE earnings per share – diluted (operating PTPP-FTE EPS), tangible common shareholders’ equity, and tangible book value per share, all of which are non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from, or as a substitute for, GAAP results. The differences between the non-GAAP financial measures – net operating income available to common shareholders, operating EPS, operating ROE, operating ROA, operating noninterest expense, operating efficiency ratio, operating PTPP, operating PTPP EPS, operating PTPP-FTE, operating PTPP-FTE EPS, tangible common shareholders’ equity, and tangible book value per share – and the nearest comparable GAAP financial measures are reconciled later in this release. The company believes that these non-GAAP financial measures and the reconciliations may be useful to investors because they adjust for acquisition- and severance-related items, and the FDIC special assessment that management does not believe reflect the company’s fundamental operating performance.

Net operating income available to common shareholders for the relevant period is defined as GAAP net income available to common shareholders, adjusted to reflect the impact of excluding expenses related to Day 1 acquisition provision expense, acquisitions, severance expense, the FDIC special assessment, and the cumulative tax impact of these adjustments.

Operating EPS (diluted) is calculated as earnings per share as reported, adjusted to reflect, on a per share basis, the impact of excluding the non-GAAP adjustments described above for the relevant period. Operating ROE is calculated as net operating income available to common shareholders, divided by the company’s average total common shareholders’ equity for the relevant period. Operating ROA is calculated as net operating income available to common shareholders, divided by the company’s average assets for the relevant period. Operating noninterest expense for the relevant period is defined as GAAP noninterest expense, adjusted to reflect the pre-tax impact of non-GAAP adjustments described above. Operating efficiency ratio is calculated as the company’s operating noninterest expense, net of amortization of other intangibles, divided by the company’s total non-GAAP revenue (calculated as net interest income plus noninterest income, less gains on sales of securities available for sale, net).

Operating PTPP income for the relevant period is defined as GAAP net interest income plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions and severance, and the FDIC special assessment.

Operating PTPP-FTE for the relevant period is defined as GAAP net interest income on a fully tax equivalent basis plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions and severance, and the FDIC special assessment.

Tangible common shareholders’ equity for the relevant period is defined as GAAP common shareholders’ equity, net of intangible assets. Tangible book value per share is defined as tangible common shareholders’ equity divided by the company’s total common shares outstanding.

Forward-Looking Statements:

This press release contains, and our other communications may contain, 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 our expectations, intentions, or forecasts about future events, circumstances, results, or aspirations. All forward-looking statements are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Our actual future objectives, strategies, plans, prospects, performance, condition, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events, circumstances, or aspirations to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2025, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (SEC). In addition to such factors that have been disclosed previously: macroeconomic and adverse developments and uncertainties related to the collateral effects of the collapse of, and challenges for, domestic and international banks, including the impacts to the U.S. and global economies; sustained levels of high inflation and the potential for an economic recession on the heels of aggressive quantitative tightening by the Federal Reserve; and impacts related to or resulting from instability in the Middle East and Russia’s military action in Ukraine, such as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do 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 we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC.

About UMB:

UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Mo. UMB offers commercial banking, which includes comprehensive deposit, lending, investment and retirement plan services; personal banking, which includes comprehensive deposit, lending, wealth management and financial planning services; and institutional banking, which includes asset servicing, corporate trust solutions, investment banking and healthcare services. UMB operates branches throughout Missouri, Arizona, California, Colorado, Iowa, Kansas, Illinois, Minnesota, Nebraska, New Mexico, Oklahoma, Texas, Utah, and Wisconsin. As the company’s reach continues to grow, it also serves business clients nationwide and institutional clients in several countries. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn.