UMB Financial Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP net income available to common shareholders was $272.3 million ($3.56 per diluted share), a 51.0% increase year-over-year from $180.4 million in Q3 2025.
• Net operating income available to common shareholders (non-GAAP) was $272.4 million ($3.56 per diluted share), a 31.9% increase year-over-year.
• Total revenue totaled $772.4 million, a 13.9% increase year-over-year.
• Net interest income was $540.0 million, a 13.7% increase year-over-year.
• Net interest margin on a fully taxable equivalent basis was 3.32%, up 28 basis points from Q3 2025.
• Noninterest income increased 14.3% year-over-year to $232.4 million.
• GAAP efficiency ratio improved to 48.71% from 58.09% in Q3 2025.
• Return on average assets was 1.53% and return on average common equity was 13.83%.
• Average loans increased 12.4% year-over-year to $41.7 billion; end-of-period loans were $42.5 billion.
• Average deposits increased 2.6% year-over-year to $58.2 billion.
• Net charge-offs totaled $14.0 million (13 basis points of average loans).
• Provision for credit losses was $31.0 million, an increase of $8.5 million from Q3 2025.
• Effective tax rate for the nine months ended September 30, 2026, was 20.2%.

Guidance and Future Outlook:

• Management stated that customer sentiment and demand for business investment remain strong despite persistent inflation, the conflict in the Middle East, and higher interest rates.
• The company believes its interest-rate-neutral balance sheet and diversified financial services model position it well to navigate the anticipated environment.
• Strategic focus remains on growing both sides of the balance sheet, maintaining a consistent net interest spread, preserving strong asset quality, and continuing momentum in fee businesses.

Business Segments and Product Lines:

• Commercial Banking: Net income was $186.0 million for the quarter.
• Institutional Banking: Net income was $68.1 million for the quarter.
• Personal Banking: Net income was $23.9 million for the quarter.
• Gross loan production reached a record $3.1 billion in Q3 2026.
• Net loan growth totaled $1.4 billion after payoffs and paydowns.
• Average commercial and industrial loan balances increased 24.9% year-over-year to $18.5 billion.
• The Fund Services division expanded its exchange-traded fund (ETF) servicing business with a fully in-house operating model.
• Trust and securities processing income increased $16.1 million year-over-year.
• Investment securities gains increased $15.1 million year-over-year.

Market and Competitive Landscape:

• The company operates in Missouri, Arizona, California, Colorado, Iowa, Kansas, Illinois, Minnesota, Nebraska, New Mexico, Oklahoma, Texas, Utah, and Wisconsin, serving business clients nationwide and institutional clients in several countries.
• Average total assets were $70.8 billion.
• The acquisition of Heartland Financial USA, Inc. (HTLF) closed on January 31, 2025, and results include the impact of acquired operations.

Risks and Challenges:

• Potential headwinds include persistent inflation, the conflict in the Middle East, and higher short- and long-term interest rates.
• Macroeconomic uncertainties and adverse developments related to domestic and international banks are noted as factors that may cause actual results to differ from forward-looking statements.
• Risks include sustained high inflation, potential economic recession, and geopolitical instability.

Management Commentary and Tone:

• Mariner Kemper, Chairman and CEO, described the results as demonstrating "strong momentum across UMB's diversified lines of business," citing robust balance sheet and fee income growth, strong asset quality metrics, and a stable net interest margin.
• Management highlighted the improvement in asset quality, with nonperforming loans declining to $118 million (28 basis points of total loans) from 31 basis points at June 30, 2026.
• The tone was confident, emphasizing the company's ability to navigate headwinds through its diversified model and innovation.

Other Key Points:

• In mid-September 2026, the company redeemed $150.0 million in outstanding 2.75% fixed-to-floating rate subordinated notes due in 2031.
• Non-GAAP measures including net operating income, operating EPS, and operating efficiency ratio were provided to adjust for acquisition-related items, severance expense, and the FDIC special assessment.
• Regulatory capital ratios at September 30, 2026, exceeded all "well-capitalized" thresholds, with a Common Equity Tier 1 capital ratio of 11.50%.
• Tangible book value per common share was $70.07.
• Dividends declared for the nine months ended September 30, 2026, were $1.36 per common share.
• Total noninterest expense included $0.1 million in acquisition-related and other nonrecurring costs, compared to $35.6 million in Q3 2025.