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UMBF Q3 Earnings Beat on Higher NII, El Dorado Buyout Deal Announced
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Key Takeaways
UMBF reported Q3'26 adjusted EPS of $3.56, beating estimates of $3.22 and rising from $2.70 year over year.
UMBF's revenues rose 13.8% year over year to $781.1 million, driven by higher NII and non-interest income.
UMBF agreed to acquire El Dorado for $506 million, adding 35 branches across California and Nevada.
UMB Financial Corp. (UMBF - Free Report) reported third-quarter 2026 adjusted operating earnings per share of $3.56, beating the Zacks Consensus Estimate of $3.22. The bottom line also increased from $2.70 in the year-ago quarter.
UMBF 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 further supported the results.
The company also announced an agreement to acquire El Dorado Savings Bank, F.S.B. (El Dorado) for approximately $506 million in a transaction comprising 52% cash and 48% stock. The acquisition will expand UMBF’s presence in Northern California and Western Nevada by adding 35 branches, including 31 in California and four in Nevada. Following the acquisition, UMBF’s branch network will expand to 227 locations across 15 states. The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions.
Results include certain non-recurring items. After considering those, net income (GAAP basis) available to common shareholders for UMBF was $272.3 million in the third quarter, up 51% from the year-ago quarter.
UMB Financial’s Revenues Rise, Expenses Decline
Quarterly revenues (fully taxable-equivalent basis) were $781.1 million, rising 13.8% year over year. The metric beat the Zacks Consensus Estimate of $749.94 million by 4.2%.
NII was $540 million, up 13.7% from the prior-year quarter.
On a fully-taxable-equivalent basis, the net interest margin was 3.32%, up 28 basis points year over year. The increase was driven primarily by growth in average loans and securities, along with favorable deposit repricing as short-term interest rates fell.
Non-interest income was $232.4 million, up 14.3% year over year. The increase was primarily driven by higher trust and securities processing income, investment securities gains and brokerage income. These increases were partially offset by lower other income.
Non-interest expenses were $399.5 million, down 4.7% year over year. Third-quarter 2026 expenses included $0.1 million in total acquisition-related and other non-recurring costs. Operating non-interest expenses (adjusted basis) were $399.3 million, up 3.7% year over year.
The efficiency ratio declined to 48.71% from the prior-year quarter’s 58.09%. A decline in the efficiency ratio indicates higher profitability.
UMBF’s Loans & Deposit Balances Rise
Average loans for the third quarter were $41.7 billion, up 2.8% sequentially and 12.4% from the prior-year quarter. End-of-period loans stood at $42.5 billion as of Sept. 30, 2026.
Average deposits increased 1.1% sequentially and 2.6% year over year to $58.2 billion. Average interest-bearing deposits increased 3.5%, while non-interest-bearing demand deposit balances declined 0.3% from the prior-year quarter.
UMB Financial’s Credit Quality: Mixed Bag
Net charge-offs totaled $14 million, or 0.13% of average loans, compared with $18.4 million, or 0.20%, in the year-ago quarter.
Total non-accrual and restructured loans were $117.9 million compared with $132 million in the year-ago quarter.
The provision for credit losses was $31 million in the third quarter of 2026, up from $22.5 million in the prior-year quarter.
UMBF’s Capital Ratios Improve
As of Sept. 30, 2026, the Tier 1 risk-based capital ratio was 12.04% compared with 11.30% as of Sept. 30, 2025. The Tier 1 leverage ratio was 9.41% compared with 8.33% in the year-ago quarter. The total risk-based capital ratio was 13.52%, up from 13.11% a year ago.
The common equity Tier 1 capital ratio was 11.50% compared with 10.70% in the year-ago quarter.
UMB Financial’s Profitability Ratios Improve
Return on average assets at the third-quarter end was 1.53% compared with the year-ago quarter’s 1.04%.
Return on average common equity was 13.83% compared with 10.14% in the year-ago quarter.
Our Take on UMBF
UMB Financial posted robust third-quarter 2026 results, driven by strong NII growth, higher non-interest income, continued loan growth, improved credit quality and better operating efficiency. However, higher operating non-interest expenses and provisions for credit losses were concerns.
Going forward, continued balance sheet growth, disciplined expense management and prudent risk management will be key to sustaining UMBF’s performance. The proposed El Dorado acquisition will expand its presence in California and Nevada, building on the 2025 acquisition of Heartland Financial. Management sees California’s economic vibrancy, complementary customer needs and growth opportunities as key drivers of expansion. Successful deal execution and capitalizing on these opportunities will support UMBF’s long-term growth.
UMB Financial Corporation Price, Consensus and EPS Surprise
Fifth Third Bancorp (FITB - Free Report) reported third-quarter 2026 adjusted earnings per share of $1.13, which surpassed the Zacks Consensus Estimate of $1.09. In the prior-year quarter, the company posted adjusted EPS of 93 cents.
FITB’s results benefited from solid growth in net interest income and fee income, along with higher loan and deposit balances. Lower provisions for credit losses also offered support. However, a substantial year-over-year rise in non-interest expenses acted as a headwind.
M&T Bank Corporation (MTB - Free Report) reported third-quarter net operating earnings per share of $5.08, which beat the Zacks Consensus Estimate of $4.98. The bottom line compared favorably with earnings of $4.87 per share in the year-ago quarter.
MTB’s results were aided by higher net interest income (NII) and loan growth. However, lower non-interest income and higher expenses, along with a sequential decline in deposits, acted as headwinds.
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UMBF Q3 Earnings Beat on Higher NII, El Dorado Buyout Deal Announced
Key Takeaways
UMB Financial Corp. (UMBF - Free Report) reported third-quarter 2026 adjusted operating earnings per share of $3.56, beating the Zacks Consensus Estimate of $3.22. The bottom line also increased from $2.70 in the year-ago quarter.
UMBF 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 further supported the results.
The company also announced an agreement to acquire El Dorado Savings Bank, F.S.B. (El Dorado) for approximately $506 million in a transaction comprising 52% cash and 48% stock. The acquisition will expand UMBF’s presence in Northern California and Western Nevada by adding 35 branches, including 31 in California and four in Nevada. Following the acquisition, UMBF’s branch network will expand to 227 locations across 15 states. The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions.
Results include certain non-recurring items. After considering those, net income (GAAP basis) available to common shareholders for UMBF was $272.3 million in the third quarter, up 51% from the year-ago quarter.
UMB Financial’s Revenues Rise, Expenses Decline
Quarterly revenues (fully taxable-equivalent basis) were $781.1 million, rising 13.8% year over year. The metric beat the Zacks Consensus Estimate of $749.94 million by 4.2%.
NII was $540 million, up 13.7% from the prior-year quarter.
On a fully-taxable-equivalent basis, the net interest margin was 3.32%, up 28 basis points year over year. The increase was driven primarily by growth in average loans and securities, along with favorable deposit repricing as short-term interest rates fell.
Non-interest income was $232.4 million, up 14.3% year over year. The increase was primarily driven by higher trust and securities processing income, investment securities gains and brokerage income. These increases were partially offset by lower other income.
Non-interest expenses were $399.5 million, down 4.7% year over year. Third-quarter 2026 expenses included $0.1 million in total acquisition-related and other non-recurring costs. Operating non-interest expenses (adjusted basis) were $399.3 million, up 3.7% year over year.
The efficiency ratio declined to 48.71% from the prior-year quarter’s 58.09%. A decline in the efficiency ratio indicates higher profitability.
UMBF’s Loans & Deposit Balances Rise
Average loans for the third quarter were $41.7 billion, up 2.8% sequentially and 12.4% from the prior-year quarter. End-of-period loans stood at $42.5 billion as of Sept. 30, 2026.
Average deposits increased 1.1% sequentially and 2.6% year over year to $58.2 billion. Average interest-bearing deposits increased 3.5%, while non-interest-bearing demand deposit balances declined 0.3% from the prior-year quarter.
UMB Financial’s Credit Quality: Mixed Bag
Net charge-offs totaled $14 million, or 0.13% of average loans, compared with $18.4 million, or 0.20%, in the year-ago quarter.
Total non-accrual and restructured loans were $117.9 million compared with $132 million in the year-ago quarter.
The provision for credit losses was $31 million in the third quarter of 2026, up from $22.5 million in the prior-year quarter.
UMBF’s Capital Ratios Improve
As of Sept. 30, 2026, the Tier 1 risk-based capital ratio was 12.04% compared with 11.30% as of Sept. 30, 2025. The Tier 1 leverage ratio was 9.41% compared with 8.33% in the year-ago quarter. The total risk-based capital ratio was 13.52%, up from 13.11% a year ago.
The common equity Tier 1 capital ratio was 11.50% compared with 10.70% in the year-ago quarter.
UMB Financial’s Profitability Ratios Improve
Return on average assets at the third-quarter end was 1.53% compared with the year-ago quarter’s 1.04%.
Return on average common equity was 13.83% compared with 10.14% in the year-ago quarter.
Our Take on UMBF
UMB Financial posted robust third-quarter 2026 results, driven by strong NII growth, higher non-interest income, continued loan growth, improved credit quality and better operating efficiency. However, higher operating non-interest expenses and provisions for credit losses were concerns.
Going forward, continued balance sheet growth, disciplined expense management and prudent risk management will be key to sustaining UMBF’s performance. The proposed El Dorado acquisition will expand its presence in California and Nevada, building on the 2025 acquisition of Heartland Financial. Management sees California’s economic vibrancy, complementary customer needs and growth opportunities as key drivers of expansion. Successful deal execution and capitalizing on these opportunities will support UMBF’s long-term growth.
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 #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Banks
Fifth Third Bancorp (FITB - Free Report) reported third-quarter 2026 adjusted earnings per share of $1.13, which surpassed the Zacks Consensus Estimate of $1.09. In the prior-year quarter, the company posted adjusted EPS of 93 cents.
FITB’s results benefited from solid growth in net interest income and fee income, along with higher loan and deposit balances. Lower provisions for credit losses also offered support. However, a substantial year-over-year rise in non-interest expenses acted as a headwind.
M&T Bank Corporation (MTB - Free Report) reported third-quarter net operating earnings per share of $5.08, which beat the Zacks Consensus Estimate of $4.98. The bottom line compared favorably with earnings of $4.87 per share in the year-ago quarter.
MTB’s results were aided by higher net interest income (NII) and loan growth. However, lower non-interest income and higher expenses, along with a sequential decline in deposits, acted as headwinds.