Third quarter 2026
Filed Oct 27, 2026UMB Financial Corporation Reports Third Quarter 2026 Results
Third-quarter GAAP net income available to common shareholders increased 51.0% from the third quarter of 2025, revenue increased 13.9%, average loans increased 12.4%, and the GAAP efficiency ratio improved to 48.71% from 58.09%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenueGAAP | $772.4M | $(5,642 ) | $94,048 |
| Q3 2026 net interest incomeGAAP | $540.0M | $7,480 | $64,963 |
| Q3 2026 net interest incomeGAAP | $540M | 1.4% | 13.7% |
| Q3 2026 net interest income, FTEnon-GAAP | $548.7M | – | – |
| Q3 2026 net interest margin, FTEother | 3.32 % | flat | up 28 basis points |
| Q3 2026 total noninterest incomeGAAP | $232.4M | $(13,122 ) | $29,085 |
| Q3 2026 total noninterest incomeGAAP | $232.4M | (5.3%) | 14.3% |
| Q3 2026 trust and securities processing incomeGAAP | $104.0M | $5,738 | $16,107 |
| Q3 2026 trading and investment banking incomeGAAP | $5.27M | $(45 ) | $(1,757 ) |
| Q3 2026 service charges on deposit accountsGAAP | $31.46M | $1,872 | $2,310 |
| Q3 2026 insurance fees and commissionsGAAP | $148K | $(59 ) | $(159 ) |
| Q3 2026 brokerage feesGAAP | $24.18M | $(1,219 ) | $3,711 |
| Q3 2026 bankcard feesGAAP | $29.45M | $(501 ) | $(108 ) |
| Q3 2026 investment securities gains (losses), netGAAP | $11.01M | $(16,078 ) | $15,102 |
| Q3 2026 other noninterest incomeGAAP | $26.83M | $(2,830 ) | $(6,121 ) |
| Q3 2026 total noninterest expenseGAAP | $399.5M | $(176 ) | $(19,828 ) |
| Q3 2026 operating noninterest expensenon-GAAP | $399.3M | $1.4 million, or 0.3% | $14.4 million, or 3.7% |
| Q3 2026 net incomeGAAP | $278.1M | – | – |
| Q3 2026 net income available to common shareholdersGAAP | $272.3M | – | 51.0% |
| Q3 2026 diluted earnings per common shareGAAP | $3.56 | – | – |
| Q3 2026 net operating income available to common shareholdersnon-GAAP | $272.4M | – | 31.9% |
| Q3 2026 operating earnings per common share, dilutednon-GAAP | $3.56 | – | – |
| Q3 2026 operating pre-tax, pre-provision incomenon-GAAP | $373.0M | (1.8%) | 27.2% |
| Q3 2026 operating pre-tax, pre-provision earnings per common share, dilutednon-GAAP | $4.88 | – | – |
| Q3 2026 GAAP return on average assetsGAAP | 1.53 % | – | – |
| Q3 2026 return on average common equityGAAP | 13.83 | – | – |
| Q3 2026 GAAP efficiency ratioGAAP | 48.71 | – | – |
| Q3 2026 operating efficiency rationon-GAAP | 48.69 | – | – |
| Q3 2026 average loansother | $41.75B | $1,125,638 | $4,611,077 |
| Q3 2026 average depositsother | $58.22B | $636,273 | $1,457,793 |
| End-of-period loans at September 30, 2026other | $42.53B | – | – |
| End-of-period total deposits at September 30, 2026other | $60.17B | – | – |
| Q3 2026 provision for credit lossesGAAP | $31M | $3.0 million | $8.5 million |
| Q3 2026 net charge-offs, total loansother | $14.00M | – | – |
| Q3 2026 net loan charge-offs as a percentage of total average loansother | 0.13 % | – | – |
| Nonaccrual and restructured loans at September 30, 2026other | $117.9M | (7.6%) | – |
| Nonaccrual and restructured loans as a percentage of total loans at September 30, 2026other | 0.28 % | – | – |
| Total assets at September 30, 2026GAAP | $72.74B | – | – |
| Total shareholders' equity at September 30, 2026GAAP | $7.85B | – | – |
| Long-term debt at September 30, 2026GAAP | $333.1M | – | – |
| Common equity Tier 1 capital ratio at September 30, 2026other | 11.50 % | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | $817.1M | – | – |
| Nine months ended September 30, 2026 diluted earnings per common shareGAAP | $10.46 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Commercial BankingQ3 2026 net income was $186,047, compared with $144,208 for the three months ended September 30, 2025. | Net interest income $375,919; noninterest income $51,395 | – | – |
| Institutional BankingQ3 2026 net income was $68,111, compared with $51,986 for the three months ended September 30, 2025. | Net interest income $73,716; noninterest income $133,279 | – | – |
| Personal BankingQ3 2026 net income was $23,927, compared with a net loss of $(7,878 ) for the three months ended September 30, 2025. | Net interest income $90,370; noninterest income $47,709 | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Dividends per common share were $0.50 for the three months ended September 30, 2026, compared to $0.40 for the three months ended September 30, 2025.
- Common dividends declared were $1.36 per share and $104,140 for the nine months ended September 30, 2026.
- Purchase of treasury stock was $(37,901 ) for the nine months ended September 30, 2026.
- In mid-September 2026, the company redeemed the $150.0 million in outstanding 2.75% fixed-to-floating rate subordinated notes due in 2031.
What drove it
- 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.
- Total gross loan production was $3.1 billion, compared to $2.6 billion in the linked quarter.
- Net interest income increased through 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.
- Trust and securities processing income increased $16.1 million from the third quarter of 2025, driven by fund services income, corporate trust income, and trust income.
- GAAP noninterest expense declined $19.8 million from the third quarter of 2025, reflecting lower other expense, legal and consulting expense, supplies and services expense, and equipment expense.
- Average total securities increased 3.8% compared to the third quarter of 2025.
Concerns
- Average noninterest-bearing demand deposits declined 6.1% from the linked quarter, reflecting expected seasonal disbursements within the institutional banking segment.
- Noninterest income decreased $13.1 million, or 5.3%, from the linked quarter, largely due to a net decrease of $16.1 million in investment securities gains.
- Provision for credit losses increased $3.0 million from the linked quarter and $8.5 million from the third quarter of 2025 due to continued loan growth, econometric loss-model recalibration, and portfolio trends.
- Accumulated other comprehensive loss, net increased to $(793,245 ) at September 30, 2026 from $(371,517 ) at June 30, 2026.
- The company cited persistent inflation, conflict in the Middle East, and higher short- and long-term interest rates as potential headwinds.
What to watch
- Whether record $3.1 billion gross loan production and $1.4 billion net loan growth continue.
- The sustainability of the 3.32% net interest margin amid deposit repricing and changes in short-term interest rates.
- Deposit mix following the decline in average noninterest-bearing demand deposits to 23.7% of total deposits from 25.5% in the linked quarter.
- Fund services and corporate trust income growth within trust and securities processing.
- Credit performance as provision for credit losses rises while nonaccrual and restructured loans improve.
Balance sheet and cash flow
- Total assets were $72,738,046 at September 30, 2026.
- Cash and due from banks were $712,683 at September 30, 2026.
- Interest-bearing due from banks were $4,296,685 at September 30, 2026.
- Total securities were $19,510,733 at September 30, 2026.
- Total deposits were $60,169,345 at September 30, 2026.
- Federal funds purchased and repurchase agreements were $3,237,311 at September 30, 2026.
- Long-term debt was $333,111 at September 30, 2026.
- Accumulated other comprehensive loss, net was $(793,245 ) at September 30, 2026.
Analysis
UMB reported a strong third quarter, with GAAP net income available to common shareholders of $272.3 million, or $3.56 per diluted common share, compared with $180.4 million, or $2.36 per diluted common share, in the third quarter of 2025. Net operating income available to common shareholders was $272.4 million, or $3.56 per diluted common share, up 31.9% from the prior-year quarter. Revenue totaled $772.4 million, up 13.9%, as net interest income rose 13.7% and noninterest income increased 14.3%.
Balance-sheet growth was the principal earnings driver. Average loans increased $4.6 billion, or 12.4%, from the third quarter of 2025 and $1.1 billion, or 2.8%, from the linked quarter. Average commercial and industrial loans increased 24.9% year over year. Net interest margin on a fully taxable equivalent basis was 3.32%, up 28 basis points from the third quarter of 2025 and flat from the linked quarter. Average deposits grew $1.5 billion, or 2.6%, year over year, though average noninterest-bearing demand deposits declined from the linked quarter and represented 23.7% of total deposits.
Fee income growth was concentrated in trust and securities processing, which increased $16.1 million from the third quarter of 2025. Investment securities gains also increased $15.1 million year over year, while brokerage income increased $3.7 million. Sequentially, noninterest income declined $13.1 million, mainly because investment securities gains fell $16.1 million after a second-quarter gain on a non-marketable security. The company also cited higher fund services and corporate trust income as partial offsets to that sequential decline.
Expense performance materially improved the reported comparison. GAAP noninterest expense was $399.5 million, down $19.8 million, or 4.7%, from the third quarter of 2025, and the GAAP efficiency ratio improved to 48.71% from 58.09%. The year-over-year decline included lower legacy HTLF contract-termination costs and lower legal and consulting expense. Operating noninterest expense, which excludes certain acquisition, severance, and FDIC special-assessment items, increased $14.4 million, or 3.7%, from the prior-year quarter, showing that the reported expense decline was substantially influenced by lower nonrecurring costs.
Credit indicators improved despite a higher provision. Net charge-offs were $14.0 million, or 0.13% of average loans, versus $18.4 million, or 0.20%, in the third quarter of 2025. Nonaccrual and restructured loans were $117.9 million, or 0.28% of total loans, down from 0.31% in the linked quarter. Provision for credit losses increased to $31.0 million as the company cited continued loan growth, loss-model recalibration, and portfolio trends. The release provided no formal forward financial guidance, leaving loan growth, deposit mix, margin stability, fee-income momentum, and provision trends as the principal reported items to monitor.
Management, verbatim
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.
Mariner Kemper, UMB Financial Corporation chairman and chief executive officer
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.
Mariner Kemper, UMB Financial Corporation chairman and chief executive officer
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.
Mariner Kemper, UMB Financial Corporation chairman and chief executive officer
Not in the filing
stated, not guessed- Formal forward revenue, expense, margin, tax-rate, earnings per share, or other financial guidance was not provided.
- Prior-release outlook was not provided, so comparison with prior guidance is unavailable.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Gross margin was not reported and is not presented as a banking metric.
- Segment revenue was not reported as a distinct line item; segment net interest income and noninterest income were reported separately.
- Cash balance was not reported as a single cash-and-cash-equivalents line item; cash and due from banks was reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.