UMB Financial Corporation Reports Fourth Quarter and Full-Year 2025 Results

 Fourth Quarter 2025 Financial Highlights

• GAAP net income available to common shareholders of $209.5 million, or $2.74 per diluted common share, an increase of 74.6% as compared to the fourth quarter of 2024.
• Net operating income available to common shareholders⁽ⁱ⁾ of $235.2 million, or $3.08 per diluted common share, an increase of 91.9% as compared to the fourth quarter of 2024.
• Fourth quarter revenues totaled $720.9 million, a 66.0% increase as compared to the fourth quarter of 2024, and an increase of 6.3% from the third quarter of 2025.
• Net interest income of $522.5 million, an increase of 94.3% as compared to the fourth quarter of 2024, and an increase of 10.0% from the third quarter of 2025.
• Net interest margin on a fully taxable equivalent basis of 3.29%, up 72 basis points from the fourth quarter of 2024.
• Noninterest income increased 20.1% to $198.4 million compared to the fourth quarter of 2024.
• Fourth quarter 2025 return on average assets of 1.20% and return on average common equity of 11.27%.
• GAAP efficiency ratio improved to 55.5% as compared to 61.8% in the fourth quarter of 2024.
• Average loans increased 13.0% on a linked-quarter annualized basis to $38.3 billion; average loans increased $13.1 billion, or 51.6%, as compared to the fourth quarter of 2024. End-of-period loans were $38.8 billion at December 31, 2025.
• Average deposits increased 5.6% on a linked-quarter annualized basis to $57.6 billion. End-of-period deposits were $60.7 billion at December 31, 2025.
• Average noninterest-bearing demand deposits increased 24.9% on a linked-quarter annualized basis to $14.7 billion.
• Noninterest expense of $425.6 million included $39.7 million in acquisition-related costs.
• Net charge-offs for the fourth quarter of 2025 totaled $12.7 million, equal to 13 basis points of average loans, compared to 20 basis points of average loans in the third quarter of 2025.
• Total assets at December 31, 2025 were $73.1 billion, up 45.0% from $50.4 billion as of December 31, 2024.

(i) A non-GAAP financial measure reconciled later in this release to the nearest comparable GAAP measure.

UMB Financial Corporation (NASDAQ:UMBF), a financial services company, announced net income available to common shareholders for the fourth quarter of 2025 of $209.5 million, or $2.74 per diluted share, compared to $180.4 million, or $2.36 per diluted share, in the third quarter (linked quarter) and $120.0 million, or $2.44 per diluted share, in the fourth quarter of 2024.

Net operating income available to common shareholders, a non-GAAP financial measure reconciled later in this release to net income available to common shareholders, the nearest comparable GAAP measure, was $235.2 million, or $3.08 per diluted share, for the fourth quarter of 2025, compared to $206.5 million, or $2.70 per diluted share, for the linked quarter and $122.6 million, or $2.49 per diluted share, for the fourth quarter of 2024. Operating pre-tax, pre-provision income (operating PTPP), a non-GAAP measure reconciled later in this release to the components of net income before taxes, the nearest comparable GAAP measure, was $329.1 million, or $4.31 per diluted share, for the fourth quarter of 2025, compared to $293.4 million, or $3.84 per diluted share, for the linked quarter, and $166.9 million, or $3.39 per diluted share, for the fourth quarter of 2024. These operating PTPP results represent an increase of 12.2% on a linked-quarter basis and an increase of 97.2% compared to the fourth quarter of 2024.

"2025 marked a significant chapter in UMB's 113-year history, with the successful completion of the acquisition of Heartland Financial and another year of record earnings. We posted significant improvements in our profitability metrics as we continue to build scale, deliver profitable growth on both sides of the balance sheet, and maintain our unwavering focus on strong asset quality metrics," said Mariner Kemper, UMB Financial Corporation chairman and chief executive officer.

"Strong fourth quarter results were once again enabled by 13.0% linked-quarter annualized loan growth, 5.6% linked-quarter annualized deposit growth that included a 24.9% increase in average demand deposit balances, and continued momentum in our fee income businesses. As reported, net interest margin expanded 25 basis points compared to the prior quarter. Operating expenses, excluding merger-related charges, increased sequentially, primarily driven by incentive compensation related to strong company performance. Net charge-offs for the fourth quarter were just 13 basis points. And for the calendar year 2025, net charge-offs were 23 basis points, lower than our long-term historical averages. I am incredibly proud of our associates for delivering strong fundamental and financial performance in 2025, while providing outstanding customer experience to our existing and newly acquired clients—all of which continues to drive our exceptional results."

Fourth Quarter 2025 earnings discussion

Note: The acquisition of Heartland Financial USA, Inc. (HTLF) closed on January 31, 2025; as such, financial results for the fiscal periods since that date include the impact from the acquired operations. Financial results in the fourth quarter of 2024 were impacted by $3.7 million in acquisition-related expense and do not include any impact of the acquired operations of HTLF.

Net interest income

• Fourth quarter 2025 net interest income totaled $522.5 million, an increase of $47.5 million, or 10.0%, from the linked quarter, driven primarily by decreased interest expense due to the mix shift in the funding composition within deposit categories coupled with growth in noninterest-bearing demand deposit balances, as well as repricing of deposits following the reduction in short-term interest rates, coupled with continued organic growth in average loans, higher purchase accounting accretion income, and a $4.6 million nonrecurring benefit from interest on loans that were brought current from nonaccrual status. These benefits were partially offset by declines in interest income on interest bearing due from bank coupled with the impact from reduction in short-term interest rates.
• Average earning assets increased $1.1 billion, or 1.7%, from the linked quarter, largely driven by increases of $1.2 billion in average loans and $952.5 million in average securities, partially offset by a decrease of $1.5 billion in average interest bearing due from bank.
• Average interest-bearing liabilities decreased $129.1 million, or 0.3%, from the linked quarter, primarily driven by a decrease of $155.2 million, or 24.7%, in borrowed funds, driven by the repayment of the 2020 subordinated debt issuance during the third quarter of 2025.
• Net interest margin for the fourth quarter was 3.29%, an increase of 25 basis points from the linked quarter, due to lower yields on interest-bearing deposits driven by mix shift and repricing of deposits following the reduction in short-term interest rates, partially offset by lower benefit from free funds in a lower interest rate environment.
• On a year-over-year basis, net interest income increased $253.5 million, or 94.3%, driven by a $21.5 billion, or 50.5%, increase in average earning assets, primarily due to rate and mix changes related to the acquisition of HTLF. Average loans increased $13.1 billion, average securities increased $6.6 billion, and average interest-bearing due from banks increased $1.1 billion.
• Average deposits increased 51.4% compared to the fourth quarter of 2024, reflecting strong organic growth as well as the impact of acquired HTLF balances. Average interest-bearing deposits increased 56.4%, and noninterest-bearing demand deposit balances increased 38.4% compared to the fourth quarter of 2024. Average demand deposit balances comprised 25.6% of total deposits, compared to 24.4% in the linked quarter and 28.0% in the fourth quarter of 2024.
• Average borrowed funds decreased $155.2 million as compared to the linked quarter driven by the repayment of the 2020 subordinated debt issuance during the third quarter of 2025. Compared to the fourth quarter of 2024, average borrowed funds increased $63.1 million driven by the acquisition of HTLF, partially offset by the repayment of borrowings under the BTFP and FHLB advances during the fourth quarter of 2024.

Noninterest income

• Fourth quarter 2025 noninterest income decreased $4.9 million, or 2.4%, on a linked-quarter basis, largely due to:
  • Decreases of $5.3 million and $2.9 million in company-owned life insurance income and derivative income, respectively, and a $2.5 million legal settlement received in the third quarter of 2025, all recorded in other income, and a $1.4 million decrease in deposit service charges. The decrease in company-owned life insurance was offset by a proportionate decrease in deferred compensation as noted below.
  • These decreases were partially offset by the following increases:
    • Increases of $6.3 million in investment securities gains primarily driven by a $5.9 million gain on the sale of a non-marketable security.
    • Increases of $3.2 million in fund services income and $1.0 million in trust income, both recorded in trust and securities processing.
• Compared to the prior year, noninterest income in the fourth quarter of 2025 increased $33.2 million, or 20.1%, primarily driven by:
  • Increases of $7.0 million in fund services income, $6.5 million in trust income, and $2.1 million in corporate trust income, all recorded in trust and securities processing.
  • Increase of $8.0 million in bankcard income due to increased interchange income, partially offset by increased rebate expense.
  • An increase of $6.3 million in service charges on deposit accounts, primarily driven by increased service charge income on interest-bearing checking accounts, largely due to the HTLF acquisition and increased corporate service charges income.

Noninterest expense

• GAAP noninterest expense for the fourth quarter of 2025 was $425.6 million, an increase of $6.3 million, or 1.5%, from the linked quarter and $155.2 million, or 57.4% from the fourth quarter of 2024. Fourth quarter 2025 expenses included $39.7 million in total acquisition-related and other nonrecurring costs, compared to $35.6 million in the linked quarter and $3.7 million in the fourth quarter of 2024. Operating noninterest expense, a non-GAAP financial measure reconciled later in this release to noninterest expense, the nearest comparable GAAP measure, was $391.8 million for the fourth quarter of 2025, an increase of $6.8 million, or 1.8%, from the linked quarter and an increase of $124.5 million, or 46.6%, from the fourth quarter of 2024.
• The linked-quarter increase in GAAP noninterest expense was driven by:
  • An increase of $13.0 million in bonus and commission expense from increased company performance, partially offset by a $5.8 million decrease in deferred compensation expense, recorded in salaries and employee benefits. The decrease in deferred compensation expense was offset by the decrease in company-owned life insurance income noted above.
  • An increase of $4.2 million in marketing and business development driven by the timing of multiple advertising campaigns and increased travel and entertainment expense.
  • An increase of $2.0 million in legal and consulting expense primarily driven by HTLF acquisition-related expenses.
  • An increase of $2.0 million in other expense driven by an increase in charitable contributions, partially offset by reduced acquisition expense from the termination of legacy HTLF contracts.
  • These increases were partially offset by the following decreases:
    • A decrease of $4.9 million in regulatory fees driven by a reduction in the FDIC special assessment expense.
    • A decrease of $3.6 million in supplies and services driven by lower HTLF acquisition costs related to computer hardware and printing expense.
• The year-over-year increase in GAAP noninterest expense was driven by:
  • Increases of $67.5 million in salaries and employee benefits expense, driven by the additional associates added as part of the HTLF acquisition, and $23.5 million in amortization of intangibles. Amortization of intangibles includes amortization of the core deposit intangible, customer list, and purchased credit card relationship intangibles recognized from the HTLF acquisition.
  • An increase of $20.6 million in other expense driven by fees for termination of legacy HTLF contracts, coupled with a $3.9 million increase in charitable contributions.
  • Increases of $12.8 million in processing fees, driven by increased software subscription costs, and $11.4 million in legal and consulting expense primarily due to HTLF acquisition-related costs and timing of multiple projects.
  • Increases of $8.7 million in occupancy expense due to branch buildings and office locations added to the company's footprint related to the HTLF acquisition, and $6.2 million in marketing and business development driven by the HTLF acquisition-related expense, including the timing of multiple advertising campaigns and increased travel and entertainment expense.
• Fourth quarter 2025 noninterest expense included $39.7 million in total acquisition-related and other nonrecurring costs, compared to $35.6 million in the linked quarter, and $3.7 million in the fourth quarter of 2024. During the fourth quarter of 2025, this expense was composed primarily of $15.5 million in other expense for contract termination fees as discussed above, $12.4 million in legal and consulting expense, $7.1 million in salaries and employee benefits, and $3.0 million in marketing expense. During the linked quarter, the $35.6 million in acquisition-related expense was primarily composed of $19.6 million in other expense for contract terminations, $9.2 million in legal and consulting expense, $4.5 million in salaries and employee benefits, and $3.5 million in supplies and services expense. During the fourth quarter of 2024, acquisition-related expense was primarily composed of $3.4 million in legal and consulting expense.

Income taxes

• The company's effective tax rate was 19.7% for the year ended December 31, 2025, compared to 18.5% for the same period in 2024. The increase is mainly due to a smaller proportion of income being earned from tax-exempt municipal securities, lower federal tax credits (net of amortization), and higher state and local income taxes. This was partially offset by more favorable discrete tax items in 2025, including a benefit from remeasuring deferred tax assets after the HTLF acquisition increased the state marginal tax rate.

Balance sheet

• Average total assets for the fourth quarter of 2025 were $69.6 billion compared to $68.5 billion for the linked quarter and $45.0 billion for the same period in 2024.

• Average loans for the fourth quarter of 2025 increased $1.2 billion, or 3.2%, on a linked-quarter basis and $13.1 billion, or 51.6%, compared to the fourth quarter of 2024. These increases reflect continued organic momentum across legacy UMB geographies, as well as the impact of acquired HTLF balances.

• Average total securities increased 5.0% on a linked-quarter basis and 49.8% compared to the fourth quarter of 2024.

• Average deposits increased 1.4% on a linked-quarter basis and 51.4% compared to the fourth quarter of 2024. These increases reflect continued organic momentum across legacy UMB geographies as well as the impact of acquired HTLF balances.

Capital

• At December 31, 2025, the regulatory capital ratios presented in the foregoing table exceeded all "well-capitalized" regulatory thresholds.

Asset Quality

• Provision for credit losses for the fourth quarter increased $2.5 million from the linked quarter and increased $6.0 million from the fourth quarter of 2024. The change in provision expense is driven by ongoing recalibrations of econometric loss models and general portfolio trends in the current periods as compared to the prior periods.
• Net charge-offs for the fourth quarter totaled $12.7 million, or 0.13% of average loans, compared to $18.4 million, or 0.20% of average loans in the linked quarter, and $8.9 million, or 0.14% of average loans for the fourth quarter of 2024.
• Nonaccrual loans increased to $144.7 million, or 0.37% of total loans; the increase compared to the linked quarter was primarily driven by the addition of one legacy HTLF loan to nonaccrual status.

Conference Call

The company will host a conference call to discuss its fourth quarter 2025 earnings results on Wednesday, January 28, 2026, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 833-470-1428 or (international) 646-844-6383 and requesting to join the UMB Financial call with access code 066287. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:

UMB Financial 4Q 2025 Conference Call

A replay of the conference call may be heard through February 11, 2026, by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 957120. The call replay may also be accessed at investorrelations.umb.com.

Non-GAAP Financial Information

In this release, we provide information about net operating income available to common shareholders, operating earnings per share – diluted (operating EPS), operating return on average common equity (operating ROE), operating return on average assets (operating ROA), operating noninterest expense, operating efficiency ratio, operating pre-tax, pre-provision income (operating PTPP), operating pre-tax, pre-provision earnings per share – diluted (operating PTPP EPS), operating pre-tax, pre-provision income on a fully tax equivalent basis (operating PTPP-FTE), operating pre-tax, pre-provision FTE earnings per share – diluted (operating PTPP-FTE EPS), tangible common shareholders' equity, and tangible book value per share, all of which are non-GAAP financial measures. This information supplements the results that are reported according to generally accepted accounting principles in the United States (GAAP) and should not be viewed in isolation from, or as a substitute for, GAAP results. The differences between the non-GAAP financial measures – net operating income available to common shareholders, operating EPS, operating ROE, operating ROA, operating noninterest expense, operating efficiency ratio, operating PTPP, operating PTPP EPS, operating PTPP-FTE, operating PTPP-FTE EPS, tangible common shareholders' equity, and tangible book value per share – and the nearest comparable GAAP financial measures are reconciled later in this release. The company believes that these non-GAAP financial measures and the reconciliations may be useful to investors because they adjust for acquisition- and severance-related items, and the FDIC special assessment that management does not believe reflect the company's fundamental operating performance.

Net operating income available to common shareholders for the relevant period is defined as GAAP net income available to common shareholders, adjusted to reflect the impact of excluding expenses related to Day 1 acquisition provision expense, acquisitions, severance expense, the FDIC special assessment, and the cumulative tax impact of these adjustments.

Operating EPS (diluted) is calculated as earnings per share as reported, adjusted to reflect, on a per share basis, the impact of excluding the non-GAAP adjustments described above for the relevant period. Operating ROE is calculated as net operating income available to common shareholders, divided by the company's average total common shareholders' equity for the relevant period. Operating ROA is calculated as net operating income available to common shareholders, divided by the company's average assets for the relevant period. Operating noninterest expense for the relevant period is defined as GAAP noninterest expense, adjusted to reflect the pre-tax impact of non-GAAP adjustments described above. Operating efficiency ratio is calculated as the company's operating noninterest expense, net of amortization of other intangibles, divided by the company's total non-GAAP revenue (calculated as net interest income plus noninterest income, less gains on sales of securities available for sale, net).

Operating PTPP income for the relevant period is defined as GAAP net interest income plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions and severance, and the FDIC special assessment.

Operating PTPP-FTE for the relevant period is defined as GAAP net interest income on a fully tax equivalent basis plus GAAP noninterest income, less noninterest expense, adjusted to reflect the impact of excluding expenses related to acquisitions and severance, and the FDIC special assessment.

Tangible common shareholders' equity for the relevant period is defined as GAAP common shareholders' equity, net of intangible assets. Tangible book value per share is defined as tangible common shareholders' equity divided by the Company's total common shares outstanding.

Forward-Looking Statements:

This press release contains, and our other communications may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as "believe," "expect," "anticipate," "intend," "estimate," "project," "outlook," "forecast," "target," "trend," "plan," "goal," or other words of comparable meaning or future-tense or conditional verbs such as "may," "will," "should," "would," or "could." Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, results, or aspirations. All forward-looking statements are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Our actual future objectives, strategies, plans, prospects, performance, condition, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events, circumstances, or aspirations to differ from those in forward-looking statements are described in our Annual Report on Form 10-K for the year ended December 31, 2024, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S. Securities and Exchange Commission (SEC). In addition to such factors that have been disclosed previously: macroeconomic and adverse developments and uncertainties related to the collateral effects of the collapse of, and challenges for, domestic and international banks, including the impacts to the U.S. and global economies; sustained levels of high inflation and the potential for an economic recession on the heels of aggressive quantitative tightening by the Federal Reserve; and impacts related to or resulting from instability in the Middle East and Russia's military action in Ukraine, such as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except to the extent required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC.

About UMB:

UMB Financial Corporation (NASDAQ:UMBF) is a financial services company headquartered in Kansas City, Mo. UMB offers commercial banking, which includes comprehensive deposit, lending, investment and retirement plan services; personal banking, which includes comprehensive deposit, lending, wealth management and financial planning services; and institutional banking, which includes asset servicing, corporate trust solutions, investment banking and healthcare services. UMB operates branches throughout Missouri, Arizona, California, Colorado, Iowa, Kansas, Illinois, Minnesota, Nebraska, New Mexico, Oklahoma, Texas, Utah, and Wisconsin. As the company's reach continues to grow, it also serves business clients nationwide and institutional clients in several countries. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn.