A month has gone by since the last earnings report for UMB Financial (UMBF Quick QuoteUMBF - Free Report) . Shares have added about 11% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is UMB due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

UMB Financial Q2 Earnings Beat on Strong NII Growth, Expenses Rise Y/Y

UMB Financial reported second-quarter 2025 operating earnings per share of $2.96, which beat the Zacks Consensus Estimate of $2.35. The bottom line also compared favorably with $2.16 in the year-ago quarter. 

The company delivered a strong quarterly performance, supported by organic growth within its legacy operations and the integration benefits of its January 2025 acquisition of Heartland Financial USA, Inc. The results were further bolstered by increases in net interest income and non-interest income. However, the overall performance was partially offset by deteriorating asset quality and elevated non-interest expenses.

Net income (GAAP basis) was $217.4 million in the second quarter compared with the $101.3 million reported in the year-ago quarter.

Revenues & Expenses Rise

Quarterly revenues were $689.2 million, surging 73.8% year over year. Also, the top line beat the Zacks Consensus Estimate by 8.2%.

NII on an FTE basis was $475.3 million, an increase of 88.9% from the prior-year quarter. On an FTE basis, the net interest margin (NIM) was 3.10% compared with 2.51% in the prior-year quarter.  The increase was primarily driven by a rise in average earning assets due to rate and mix changes related to the acquisition of Heartland Financial.

Non-interest income was $222.2 million, up 53.3% year over year. The rise was primarily driven by an increase in investment securities gains, trust and securities processing, and service charges on deposit accounts.

Non-interest expenses were $393.2 million, up 57.8% year over year. The increase was primarily due to a rise in salaries and employee benefits expenses, driven by the additional associates added as part of the Heartland Financial acquisition, an increase in occupancy expenses, and processing fees. Operating non-interest expenses (adjusted basis) were $380 million, up 56.3% year over year.

The efficiency ratio was 53.38%, down from the prior-year quarter’s 63.37%. An increase in the efficiency ratio indicates a decrease in profitability.

Loans & Deposit Balances Rise

As of June 30, 2025, average loans and leases were $36.4 billion, up 12.7% sequentially. Also, average deposits increased 10.7% year over year to $55.6 billion.

Credit Quality Deteriorates

The ratio of net charge-offs to average loans was 0.17% in the reported quarter compared with 0.05% in the prior-year quarter. 

Total non-accrual and restructured loans were $97 million compared with $13.7 million in the prior-year quarter.  

The provision for credit losses was $21 million in the second quarter of 2025 compared with the $14.1 million reported in the prior-year quarter.

Capital Ratios: Mixed Bag

As of June 30, 2025, the Tier 1 risk-based capital ratio was 11.24% compared with 11.14% as of June 30, 2024. The Tier 1 leverage ratio was 8.34% compared with 8.50% in the prior-year quarter. The total risk-based capital ratio was 13.46% compared with 13.08% in the year-ago quarter.

Profitability Ratios Improve

Return on average assets at the second-quarter end was 1.29% compared with the year-ago quarter’s 0.96%.

The operating return on average common equity was 13.31% compared with 13.30% in the year-ago quarter.

Outlook

3Q 2025

Operating expenses are expected to be slightly higher, in the range of $380 million to $385 million.

2025

The company expects the tax rate to be between 19% and 21%.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates review.

VGM Scores

At this time, UMB has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, UMB has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

UMB belongs to the Zacks Banks - Midwest industry. Another stock from the same industry, Associated Banc-Corp (ASB Quick QuoteASB - Free Report) , has gained 7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Associated Banc-Corp reported revenues of $366.98 million in the last reported quarter, representing a year-over-year change of +12.7%. EPS of $0.65 for the same period compares with $0.52 a year ago.

For the current quarter, Associated Banc-Corp is expected to post earnings of $0.66 per share, indicating a change of +17.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.

Associated Banc-Corp has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.