UMB Financial Corporation Reports Third Quarter 2026 Results

Third Quarter 2026 Financial Highlights

• GAAP net income available to common shareholders of $272.3 million, or $3.56 per diluted common share, an increase of 51.0% as compared to the third quarter of 2025.
• Net operating income available to common shareholders⁽ⁱ⁾ of $272.4 million, or $3.56 per diluted common share, an increase of 31.9% as compared to the third quarter of 2025.
• Third quarter revenue totaled $772.4 million, a 13.9% increase as compared to the third quarter of 2025.
• Net interest income of $540.0 million, an increase of 13.7% as compared to the third quarter of 2025.
• Net interest margin on a fully taxable equivalent basis of 3.32%, up 28 basis points from the third quarter of 2025.
• Noninterest income increased 14.3% to $232.4 million compared to the third quarter of 2025.
• Third quarter 2026 return on average assets of 1.53% and return on average common equity of 13.83%.
• GAAP efficiency ratio improved to 48.71% as compared to 58.09% in the third quarter of 2025.
• Average loans increased 11.1% on a linked-quarter, annualized basis to $41.7 billion; average loans increased $4.6 billion, or 12.4%, as compared to the third quarter of 2025. End-of-period loans were $42.5 billion at September 30, 2026.
  • Average commercial and industrial loan balances increased 21.5% on a linked-quarter, annualized basis to $18.5 billion, and increased 24.9% from the third quarter of 2025.
  • In the third quarter of 2026, total gross loan production was $3.1 billion, compared to $2.6 billion in the linked quarter.
• Average deposits increased 4.4% on a linked-quarter, annualized basis to $58.2 billion; average deposits increased $1.5 billion, or 2.6% compared to the third quarter of 2025.
• Net charge-offs for the third quarter of 2026 totaled $14.0 million, equal to 13 basis points of average loans; nonperforming loans improved to 28 basis points of total loans, from 31 basis points at June 30, 2026.

(i) A non-GAAP financial measure reconciled later in this release to the nearest comparable GAAP measure.

KANSAS CITY, Mo.--(BUSINESS WIRE)--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

Media Contact: Stephanie Hollander: 816.729.1027
Investor Relations Contact: Kay Gregory: 816.860.7106