UMB Financial Corporation Reports Second Quarter 2026 Results

Second Quarter 2026 Financial Highlights

• GAAP net income available to common shareholders of $271.8 million, or $3.56 per diluted common share, an increase of 26.2% as compared to the second quarter of 2025.

• Net operating income available to common shareholders(i) of $273.0 million, or $3.57 per diluted common share, an increase of 21.1% as compared to the second quarter of 2025.

• Second quarter revenue totaled $778.0 million, a 12.9% increase as compared to the second quarter of 2025, and an increase of 5.3% from the first quarter of 2026.

• Net interest income of $532.5 million, an increase of 14.0% as compared to the second quarter of 2025.

• Net interest margin on a fully taxable equivalent basis of 3.32%, up 22 basis points from the second quarter of 2025.

• Noninterest income increased 10.5% to $245.5 million compared to the second quarter of 2025, and increased 19.9% from the first quarter of 2026.

• Second quarter 2026 return on average assets of 1.55% and return on average common equity of 14.16%.

• GAAP efficiency ratio improved to 48.4% as compared to 53.4% in the second quarter of 2025.

• Average loans increased 12.6% on a linked-quarter, annualized basis to $40.6 billion; average loans increased $4.2 billion, or 11.6%, as compared to the second quarter of 2025. End-of-period loans were $41.1 billion at June 30, 2026.

• Net charge-offs for the second quarter of 2026 totaled $15.9 million, equal to 16 basis points of average loans; nonperforming loans improved to 31 basis points of total loans, from 38 basis points at March 31, 2026.

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

KANSAS CITY, Mo., July 28, 2026--(BUSINESS WIRE)--UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income available to common shareholders for the second quarter of 2026 of $271.8 million, or $3.56 per diluted share, compared to $255.6 million, or $3.35 per diluted share, in the first quarter of 2026 (linked quarter) and $215.4 million, or $2.82 per diluted share, in the second 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 $273.0 million, or $3.57 per diluted share, for the second quarter of 2026, compared to $259.8 million, or $3.41 per diluted share, for the linked quarter and $225.4 million, or $2.96 per diluted share, for the second 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 $380.1 million, or $4.97 per diluted share, for the second quarter of 2026, compared to $363.8 million, or $4.76 per diluted share, for the linked quarter, and $309.2 million, or $4.06 per diluted share, for the second quarter of 2025. These operating PTPP results represent a 4.5% increase on a linked-quarter basis and a 22.9% increase compared to the second quarter of 2025.

"Our strong second quarter financial results were once again driven by solid loan growth, exceptional asset quality, and continued strength in our fee income-generating businesses including monetization of investments held in our private investment division," said Mariner Kemper, UMB Financial Corporation chairman and chief executive officer.

"Loan growth averaged 12.6% on a linked-quarter annualized basis, driven in large part by continued strength in our commercial and industrial (C&I) lending segments. Average loans exceeded $40 billion for the first time in our history, ending the quarter at $41.1 billion. During the quarter, we also reached a new record for total gross loan production of $2.6 billion, compared to $2.3 billion in the prior quarter. Average C&I loan balances increased 21.6% on a linked-quarter annualized basis to $17.5 billion. At the same time, our net charge-offs averaged a modest 16 basis points of loans, compared to 19 basis points in the prior quarter, while nonperforming loans declined 15.7% from March 31, 2026, to $127.5 million, or 31 basis points of total loans."

"As we often say, and consistently demonstrate, within the banking industry, UMB operates at the unique intersection of strong organic loan growth with exceptional asset quality. Excluding the impacts of $35.9 million and $51.0 million in purchase accounting accretion benefits in the second and first quarters of 2026, respectively, our core net interest margin increased four basis points sequentially while net interest income increased 2.7%. Fee income in the second quarter increased 19.9% compared to the prior quarter to $245.5 million. This was led by gains on equity positions held in our private investment portfolio, strong fee generation from our fund services, corporate trust and custody businesses, higher 12b-1 fees from growth in off-balance sheet deposit balances, customer swap fees, and card interchange income. Our private investment activity continued to deliver in the second quarter with $27.1 million in net gains from our holdings, primarily Beacon Communications, LLC and fund investment gains related to the public offering of Space Exploration Technologies (SpaceX)."

Mr. Kemper continued, "Finally, we are excited to announce that the board of directors has declared a dividend of $0.50 per common share to be paid on October 1, 2026, which represents a 16.3% increase from prior levels. This increase reflects our continued strong financial performance and our commitment to return value to our shareholders."

Second 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 first quarter and year-to-date 2025 include only two and five months, respectively, of impact of the acquired operations of HTLF.

Net interest income

• Second quarter 2026 net interest income totaled $532.5 million, a decrease of $1.8 million, or 0.3%, from the linked quarter, driven primarily by declines in purchase accounting accretion benefits and interest income on lower federal funds and interest-bearing due from banks balances, alongside an increase in interest expense due to the mix shift in the funding composition within deposit categories. These changes were partially offset by continued organic growth in loans, increased loan fees, benefit from an additional day in the quarter, and favorable rate and mix shifts in earning assets.

• Average earning assets increased $173.8 million, or 0.3%, from the linked quarter, largely driven by an increase of $1.2 billion in average loans, partially offset by decreases of $506.0 million in average federal funds and resell agreements and $480.6 million in average interest-bearing due from banks.

• Average interest-bearing liabilities increased $293.6 million, or 0.6%, from the linked quarter, primarily driven by an increase of $401.7 million, or 0.9%, in interest-bearing deposits, partially offset by a decrease of $111.2 million, or 3.1%, in federal funds and repurchase agreements. Average total deposits were flat compared to the linked quarter.

• Net interest margin for the second quarter was 3.32%, a decrease of six basis points from the linked quarter, due to lower purchase accounting accretion income that impacted the yields on loans, and a lower benefit from free funds, partially offset by a favorable mix shift in earning assets.

• On a year-over-year basis, net interest income increased $65.5 million, or 14.0%, driven by favorable repricing of deposits in conjunction with lower short-term interest rates, and increases of $4.2 billion, or 11.6%, in average loans and $2.2 billion, or 12.6%, in average securities. These increases were partially offset by a decrease of $2.9 billion, or 44.3%, in average interest-bearing due from banks and $6.3 million in lower purchase accounting accretion income.

• Average deposits increased 3.5% compared to the second quarter of 2025. Average interest-bearing deposits increased 3.9%, and noninterest-bearing demand deposit balances increased 2.1% compared to the second quarter of 2025. Average demand deposit balances comprised 25.5% of total deposits in the second quarter of 2026, compared to 26.2% in the linked quarter and 25.9% in the second quarter of 2025.

Noninterest income

• Second quarter 2026 noninterest income increased $40.7 million, or 19.9%, on a linked-quarter basis, largely due to:

  • An increase of $24.0 million in investment securities gains primarily driven by a $17.9 million gain on the sale of a non-marketable security in the second quarter of 2026, coupled with increases of $9.1 million in valuation of the company's non-marketable securities. These increases were partially offset by a $3.0 million gain on the sale of a non-marketable security in the first quarter of 2026.

  • An increase of $11.2 million in company-owned life insurance income, recorded in other income. The increase in company-owned life insurance income was offset by a proportionate increase in deferred compensation as noted below.

  • An increase of $4.3 million in brokerage income due to higher 12b-1 fees and money market income.

  • Increases of $2.4 million in fund services income and $1.1 million in corporate trust income, both recorded in trust and securities processing.

  • The increases noted above were partially offset by a decrease of $2.4 million in trading and investment banking due to decreases in municipal and agency trading activity.

• Compared to the prior year, noninterest income in the second quarter of 2026 increased $23.3 million, or 10.5%, primarily driven by:

  • An increase of $15.0 million in trust and securities processing driven by increases of $9.1 million in fund services income, $3.9 million in corporate trust income, and $2.0 million in trust income.

  • Increases of $8.8 million in company-owned life insurance income, $2.5 million in bank-owned life insurance income, and $1.0 million in derivative income, all recorded in other income. The increase in company-owned life insurance income was offset by a proportionate increase in deferred compensation as noted below.

  • An increase of $4.9 million in brokerage income due to higher 12b-1 fees and money market income.

  • The increases noted above were partially offset by a decrease of $10.6 million in investment securities gains primarily driven by the pre-tax gain of $29.4 million on the company's investment in Voyager Technologies, Inc., which completed its initial public offering in June 2025, and pre-tax gains of $8.2 million on the sale of two non-marketable securities, all recognized in the second quarter of 2025. This compares to a $17.9 million gain on the sale of a non-marketable security and increases of $9.1 million in valuation of the company's non-marketable securities in the second quarter of 2026.

Noninterest expense