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UMB Financial Q1 Earnings Beat on Y/Y Rise in NII, Expenses Fall
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Key Takeaways
UMB Financial reported Q1 EPS of $3.41, beating estimates and rising from $2.58 a year ago.
UMBF saw NII jump 34.4% and revenues hike 30.9%, aided by loan growth and HTLF acquisition.
UMB Financial cut expenses and improved its efficiency ratio to 48.4%, boosting profitability metrics.
UMB Financial Corp. (UMBF - Free Report) reported first-quarter 2026 operating earnings per share of $3.41, beating the Zacks Consensus Estimate of $2.82. The bottom line also increased from $2.58 in the year-ago quarter.
The company delivered a strong quarterly performance, supported by solid growth in net interest income (NII), higher non-interest income and continued loan growth. Lower non-interest expenses and improved efficiency further supported results.
Net income (GAAP basis) available to common shareholders for UMBF was $255.6 million in the first quarter, soaring 222.3% from the year-ago quarter.
UMB Financial’s Revenues Rise, Expenses Fall
Quarterly revenues were $747.9 million, rising 30.9% year over year. The metric beat the Zacks Consensus Estimate by 5.9%.
NII was $534.4 million, up 34.4% from the prior-year quarter and 2.3% sequentially.
On a fully-taxable-equivalent basis, the net interest margin was 3.38%, up 42 basis points year over year and nine basis points sequentially. The increase was primarily led by lower yields on interest-bearing deposits due to mix shift and repricing of deposits following the reduction in short-term interest rates.
Non-interest income was $204.8 million, up 23.2% year over year. The increase was primarily driven by higher trust and securities processing income, investment securities gains, other income, brokerage income, bankcard income and service charges on deposit accounts.
Non-interest expenses were $380.9 million, down 1% year over year. First-quarter 2026 expenses included $4.4 million in total acquisition-related and other non-recurring costs. Operating non-interest expenses (adjusted basis) were $375.4 million, up 13.6% year over year. The efficiency ratio improved to 48.4% from the prior-year quarter’s 65.2%. A decline in the efficiency ratio indicates an increase in profitability.
UMBF’s Loans & Deposit Balances Rise
Average loans for the first quarter were $39.4 billion, up 2.7% sequentially and 21.9% from the prior-year quarter. End-of-period loans stood at $40.1 billion as of March 31, 2026.
Average deposits remained flat sequentially and increased 14.5% year over year to $57.6 billion. The increase from the first quarter of 2025 reflected the impacts of acquired HTLF balances.
UMB Financial’s Credit Quality: Mixed Bag
Net charge-offs totaled $18.9 million, or 0.19% of average loans, compared with $35.9 million, or 0.45%, in the year-ago quarter.
Total non-accrual and restructured loans were $151.3 million compared with $100.9 million in the year-ago quarter.
The provision for credit losses was $27 million in the first quarter of 2026, down from $86 million in the prior-year quarter.
UMBF’s Capital Ratios Improve
As of March 31, 2026, the Tier 1 risk-based capital ratio was 11.74% compared with 10.35% as of March 31, 2025. The Tier 1 leverage ratio was 8.73% compared with 8.47% in the year-ago quarter. The total risk-based capital ratio was 13.53%, up from 12.54% a year ago.
In March 2026, the company repurchased 178,249 common shares at a weighted average price of $111.62 for a total repurchase of $19.9 million. The board also increased the share repurchase authorization to 2 million shares from one million shares previously.
UMB Financial’s Profitability Ratios Improve
Return on average assets at the first-quarter end was 1.47% compared with the year-ago quarter’s 0.54%.
Return on average common equity was 13.70% compared with 5.86% in the year-ago quarter.
Our Take on UMBF
UMB Financial posted robust first-quarter 2026 results, driven by strong net interest income growth, higher non-interest income and margin expansion. The company also benefited from continued loan growth, the impacts of acquired HTLF balances and improved operating efficiency.
Lower non-interest expenses and improved profitability ratios were positives. Going forward, continued balance sheet growth, disciplined expense management and prudent risk management will be the key to sustaining UMBF’s performance momentum.
UMB Financial Corporation Price, Consensus and EPS Surprise
BOK Financial Corporation's (BOKF - Free Report) first-quarter 2026 earnings of $2.58 per share surpassed the Zacks Consensus Estimate of $2.30. The bottom line jumped 38.7% from the prior-year quarter.
BOKF’s results benefited from higher NII and total fees and commissions. An increase in loans was another positive. However, the rise in operating expenses was a major undermining factor.
First Horizon Corporation (FHN - Free Report) posted first-quarter 2026 earnings per share of 53 cents, surpassing the Zacks Consensus Estimate of 49 cents. This compares favorably with 42 cents in the year-ago quarter.
FHN’s results benefited from higher NII and a rise in non-interest income, along with improved credit quality. However, the rise in expenses remains a headwind.
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UMB Financial Q1 Earnings Beat on Y/Y Rise in NII, Expenses Fall
Key Takeaways
UMB Financial Corp. (UMBF - Free Report) reported first-quarter 2026 operating earnings per share of $3.41, beating the Zacks Consensus Estimate of $2.82. The bottom line also increased from $2.58 in the year-ago quarter.
The company delivered a strong quarterly performance, supported by solid growth in net interest income (NII), higher non-interest income and continued loan growth. Lower non-interest expenses and improved efficiency further supported results.
Net income (GAAP basis) available to common shareholders for UMBF was $255.6 million in the first quarter, soaring 222.3% from the year-ago quarter.
UMB Financial’s Revenues Rise, Expenses Fall
Quarterly revenues were $747.9 million, rising 30.9% year over year. The metric beat the Zacks Consensus Estimate by 5.9%.
NII was $534.4 million, up 34.4% from the prior-year quarter and 2.3% sequentially.
On a fully-taxable-equivalent basis, the net interest margin was 3.38%, up 42 basis points year over year and nine basis points sequentially. The increase was primarily led by lower yields on interest-bearing deposits due to mix shift and repricing of deposits following the reduction in short-term interest rates.
Non-interest income was $204.8 million, up 23.2% year over year. The increase was primarily driven by higher trust and securities processing income, investment securities gains, other income, brokerage income, bankcard income and service charges on deposit accounts.
Non-interest expenses were $380.9 million, down 1% year over year. First-quarter 2026 expenses included $4.4 million in total acquisition-related and other non-recurring costs. Operating non-interest expenses (adjusted basis) were $375.4 million, up 13.6% year over year.
The efficiency ratio improved to 48.4% from the prior-year quarter’s 65.2%. A decline in the efficiency ratio indicates an increase in profitability.
UMBF’s Loans & Deposit Balances Rise
Average loans for the first quarter were $39.4 billion, up 2.7% sequentially and 21.9% from the prior-year quarter. End-of-period loans stood at $40.1 billion as of March 31, 2026.
Average deposits remained flat sequentially and increased 14.5% year over year to $57.6 billion. The increase from the first quarter of 2025 reflected the impacts of acquired HTLF balances.
UMB Financial’s Credit Quality: Mixed Bag
Net charge-offs totaled $18.9 million, or 0.19% of average loans, compared with $35.9 million, or 0.45%, in the year-ago quarter.
Total non-accrual and restructured loans were $151.3 million compared with $100.9 million in the year-ago quarter.
The provision for credit losses was $27 million in the first quarter of 2026, down from $86 million in the prior-year quarter.
UMBF’s Capital Ratios Improve
As of March 31, 2026, the Tier 1 risk-based capital ratio was 11.74% compared with 10.35% as of March 31, 2025. The Tier 1 leverage ratio was 8.73% compared with 8.47% in the year-ago quarter. The total risk-based capital ratio was 13.53%, up from 12.54% a year ago.
In March 2026, the company repurchased 178,249 common shares at a weighted average price of $111.62 for a total repurchase of $19.9 million. The board also increased the share repurchase authorization to 2 million shares from one million shares previously.
UMB Financial’s Profitability Ratios Improve
Return on average assets at the first-quarter end was 1.47% compared with the year-ago quarter’s 0.54%.
Return on average common equity was 13.70% compared with 5.86% in the year-ago quarter.
Our Take on UMBF
UMB Financial posted robust first-quarter 2026 results, driven by strong net interest income growth, higher non-interest income and margin expansion. The company also benefited from continued loan growth, the impacts of acquired HTLF balances and improved operating efficiency.
Lower non-interest expenses and improved profitability ratios were positives. Going forward, continued balance sheet growth, disciplined expense management and prudent risk management will be the key to sustaining UMBF’s performance momentum.
UMB Financial Corporation Price, Consensus and EPS Surprise
UMB Financial Corporation price-consensus-eps-surprise-chart | UMB Financial Corporation Quote
UMBF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Banks
BOK Financial Corporation's (BOKF - Free Report) first-quarter 2026 earnings of $2.58 per share surpassed the Zacks Consensus Estimate of $2.30. The bottom line jumped 38.7% from the prior-year quarter.
BOKF’s results benefited from higher NII and total fees and commissions. An increase in loans was another positive. However, the rise in operating expenses was a major undermining factor.
First Horizon Corporation (FHN - Free Report) posted first-quarter 2026 earnings per share of 53 cents, surpassing the Zacks Consensus Estimate of 49 cents. This compares favorably with 42 cents in the year-ago quarter.
FHN’s results benefited from higher NII and a rise in non-interest income, along with improved credit quality. However, the rise in expenses remains a headwind.