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Shares of UMB Financial Corp. UMBF gained nearly 2% yesterday following better-than-expected fourth-quarter 2025 results. The company reported operating earnings per share of $3.08, which increased sharply from $2.49 in the year-ago quarter. The bottom line also surpassed the Zacks Consensus Estimate of $2.71.
The company delivered a strong quarterly performance, supported by robust organic loan and deposit growth across its legacy footprint and continued benefits from the integration of its January 2025 acquisition of Heartland Financial USA, Inc. Results were driven by solid growth in net interest income (NII) and steady fee income momentum. However, higher non-interest expenses and some pressure on asset quality partly offset the positives.
Net income (GAAP basis) available to common shareholders for UMBF was $209.5 million in the fourth quarter, soaring 74.6% from the year-ago quarter.
For 2025, operating earnings per share were $11.35, increased from $9.41 in the year-ago period. The bottom line also surpassed the Zacks Consensus Estimate of $10.70 per share.
Quarterly revenues were $720.9 million, surging 66% year over year. The metric beat the Zacks Consensus Estimate by 6.2%.
Revenues for 2025 were $2.65 billion, up from $1.63 billion in 2024. The metric topped the Zacks Consensus Estimate of $2.61 billion.
Net interest income was $522.5 million, a jump of 94.3% from the prior-year quarter and up 10.0% sequentially.
On a fully taxable equivalent (FTE) basis, the net interest margin was 3.29%, up 72 basis points year over year and 25 basis points sequentially. The increase was primarily driven by growth in average earning assets related to the Heartland acquisition, continued organic loan growth, higher purchase accounting accretion income and favorable funding mix shifts.
Non-interest income was $198.4 million, up 20.1% year over year. The increase was primarily driven by higher trust and securities processing income, bankcard fees and service charges on deposit accounts.
Non-interest expenses were $425.6 million, jumping 57.4% year over year. Fourth-quarter 2025 expenses included $39.7 million in total acquisition-related and other non-recurring costs. Operating non-interest expenses (adjusted basis) were $391.8 million, up 46.6% year over year.
The efficiency ratio improved to 55.5% from the prior-year quarter’s 61.8%. A decline in the efficiency ratio indicates an increase in profitability.
Average loans for the fourth quarter were $38.3 billion, up 3.2% sequentially. End-of-period loans stood at $38.8 billion as of Dec. 31, 2025.
Average deposits increased 51.4% year over year to $57.6 billion. End-of-period deposits were $60.7 billion at quarter-end.
Net charge-offs totaled $12.7 million, or 0.13% of average loans compared with 0.14% in the year-ago quarter.
Total non-accrual and restructured loans were $144.7 million compared with $19.3 million in the year-ago quarter.
The provision for credit losses was $25 million in the fourth quarter of 2025, up from $19 million in the prior-year quarter.
As of Dec. 31, 2025, the Tier 1 risk-based capital ratio was 11.55% compared with 11.29% as of Dec. 31, 2024. The Tier 1 leverage ratio was 8.54% compared with 8.50% in the year-ago quarter. The total risk-based capital ratio was 13.36%, up from 13.21% a year ago.
Return on average assets at the fourth-quarter end was 1.20% compared with the year-ago quarter’s 1.06%.
Return on average common equity was 11.27% compared with 13.53% in the year-ago quarter.
UMB Financial posted robust fourth-quarter 2025 results, driven by strong net interest income growth, steady non-interest income performance and continued margin expansion. The acquisition of Heartland Financial continued to provide meaningful scale benefits, supporting solid loan and deposit growth during the quarter.
While elevated expenses related to integration activities and some pressure on credit quality remain areas to watch, the company’s improved efficiency and profitability metrics highlight its solid operating leverage. Going forward, continued execution on the Heartland Financial integration and disciplined risk management will be key to sustaining UMBF’s performance momentum.
UMB Financial Corporation Price, Consensus and EPS Surprise
UMB Financial Corporation price-consensus-eps-surprise-chart | UMB Financial Corporation Quote
UMBF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
BOK Financial Corporation's BOKF fourth-quarter 2025 adjusted net income per share of $2.48 surpassed the Zacks Consensus Estimate of $2.13. The bottom line increased 16.9% from the prior-year quarter.
BOKF’s results benefited from higher NII and total fees and commissions. An increase in loans and deposit balances was another positive. However, a rise in operating expenses was a major undermining factor.
First Horizon Corporation’s FHN fourth-quarter 2025 adjusted earnings per share of 52 cents surpassed the Zacks Consensus Estimate of 47 cents. This compares favorably with 43 cents in the year-ago quarter.
FHN’s results benefited from higher NII and a significant rise in non-interest income, along with the absence of provision for credit losses. However, the rise in expenses remains a headwind.
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This article originally published on Zacks Investment Research (zacks.com).
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