A month has gone by since the last earnings report for UMB Financial (UMBF Quick QuoteUMBF - Free Report) . Shares have added about 6.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is UMB due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for UMB Financial Corporation before we dive into how investors and analysts have reacted as of late.

UMB Financial Q1 Earnings Beat on Y/Y Rise in NII, Expenses Fall

UMB Financial 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, 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.

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.

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.

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.

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.

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.

2026 Outlook

The effective tax rate is expected to be 20-22%. 

Management expects positive operating leverage for 2026, even as contractual purchase accounting accretion declines versus the current run rate.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

VGM Scores

At this time, UMB has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.

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 trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise UMB has a Zacks Rank #1 (Strong Buy). We expect an above average 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, Commerce Bancshares (CBSH Quick QuoteCBSH - Free Report) , has gained 1.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Commerce reported revenues of $475.69 million in the last reported quarter, representing a year-over-year change of +11.1%. EPS of $0.96 for the same period compares with $0.98 a year ago.

For the current quarter, Commerce is expected to post earnings of $1.02 per share, indicating a change of -10.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.3% over the last 30 days.

Commerce has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.