UMB Financial Corporation Reports Second Quarter 2025 Results
Business Wire4 days ago
KANSAS CITY, Mo.--(BUSINESS WIRE)-- UMB Financial Corporation (Nasdaq: UMBF), a financial services company, announced net income available to common shareholders for the second quarter of 2025 of $215.4 million, or $2.82 per diluted share, compared to $79.3 million, or $1.21 per diluted share, in the first quarter (linked quarter) and $101.3 million, or $2.07 per diluted share, in the second 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 $225.4 million, or $2.96 per diluted share, for the second quarter of 2025, compared to $168.9 million, or $2.58 per diluted share, for the linked quarter and $105.9 million, or $2.16 per diluted share, for the second 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 $309.2 million, or $4.06 per diluted share, for the second quarter of 2025, compared to $233.3 million, or $3.57 per diluted share, for the linked quarter, and $146.8 million, or $3.00 per diluted share, for the second quarter of 2024. These operating PTPP results represent increases of 32.5% on a linked-quarter basis and 110.6% compared to the second quarter of 2024.
'Our strong second quarter financial results were once again facilitated by strong growth on both sides of our balance sheet, outsized fee income gains, improved asset quality metrics and improved operating leverage,' said Mariner Kemper, UMB Financial Corporation chairman and chief executive officer. 'Total revenues of $689.2 million in the second quarter represented a 22.2% increase from the prior quarter, driven both by organic growth from legacy UMB operations as well as the continued benefits of the acquired Heartland franchise. On a linked quarter basis, average loans increased 12.7% to $36.4 billion while average deposits increased 10.7% to $55.6 billion. On an operating basis, net operating income available to common shareholders more than doubled to $225.4 million from the year-ago quarter and increased 33.5% from the linked quarter. Net interest margin expanded 14 basis points sequentially to 3.10%, driven by the benefits of Heartland's granular core deposit base. Fee income benefited primarily from net increases in the value of the portfolio investments managed by UMB Capital Corporation as well as other private investments. We have a successful track record of investing in and financing emerging businesses, and we had yet another successful outcome with our investment in Voyager Technologies, Inc. which went public in June resulting in a pre-tax gain of $29.4 million in the second quarter. Net charge-offs for the second quarter improved to $15.5 million or 17 basis points of average loans which included $6.5 million in losses related to the acquired Heartland loan portfolio."
Kemper continued, 'I am extremely proud of the teams that continue to work tirelessly to deliver a seamless transition to our customers from the Heartland acquisition. In July, we successfully converted the Minnesota franchise of Heartland to the core UMB platform and remain on track to convert the rest of the acquired operations in October.'
Second Quarter 2025 earnings discussion
Note: The acquisition of HTLF closed on January 31, 2025; as such, financial results for the second quarter of 2025 include three months of impact from the acquired operations, compared to two months of impact in the first quarter of 2025. Financial results in the second quarter of 2024 were impacted by $9.6 million in acquisition-related expense and do not include any impact of the acquired operations of HTLF.
Summary of revenue
UMB Financial Corporation
(unaudited, dollars in thousands)
Q2
Q1
Q2
CQ vs.
CQ vs.
2025
2025
2024
LQ
PY
Net interest income
$
467,024
$
397,639
$
245,108
$
69,385
$
221,916
Noninterest income:
Trust and securities processing
83,263
79,781
70,010
3,482
13,253
Trading and investment banking
6,170
5,911
5,461
259
709
Service charges on deposit accounts
28,865
27,457
22,261
1,408
6,604
Insurance fees and commissions
189
178
267
11
(78
)
Brokerage fees
20,525
18,102
14,020
2,423
6,505
Bankcard fees
29,018
26,293
22,346
2,725
6,672
Investment securities gains (losses), net
37,685
(4,782
)
(1,867
)
42,467
39,552
Other
16,470
13,258
12,421
3,212
4,049
Total noninterest income
$
222,185
$
166,198
$
144,919
$
55,987
$
77,266
Total revenue
$
689,209
$
563,837
$
390,027
$
125,372
$
299,182
Net interest income (FTE)
$
475,315
$
405,144
$
251,515
Net interest margin (FTE)
3.10
%
2.96
%
2.51
%
Total noninterest income as a % of total revenue
32.2
29.5
37.2
Expand
Net interest income
Second quarter 2025 net interest income totaled $467.0 million, an increase of $69.4 million, or 17.4%, from the linked quarter, driven primarily by continued organic growth in average loans, and one additional month of benefit from the acquired HTLF franchise, including the favorable impact of purchase accounting accretion attributable to the acquisition. These increases were partially offset by higher interest expense driven by strong deposit growth.
Average earning assets increased $5.9 billion, or 10.6%, from the linked quarter, largely driven by an increase of $4.1 billion in average loans and an increase of $1.8 billion in average securities.
Average interest-bearing liabilities increased $4.5 billion, or 11.3%, from the linked quarter, primarily driven by an increase of $4.4 billion, or 11.9%, in interest-bearing deposits. Average non-interest bearing deposits increased $975.0 million, or 7.3%, as compared to the linked quarter.
Net interest margin for the second quarter was 3.10%, an increase of 14 basis points from the linked quarter, due to higher yields on loans and securities driven in large part by the net impact of purchase accounting accretion income on acquired assets and liabilities from HTLF, and earning asset mix changes. Average loan yields increased 13 basis points and total earning asset yields increased 17 basis points from the linked quarter. Total cost of funds increased two basis points from the linked quarter to 2.60%.
On a year-over-year basis, net interest income increased $221.9 million, or 90.5%, driven by a $21.2 billion, or 52.7%, increase in average earning assets, primarily due to rate and mix changes related to the acquisition of HTLF. Average loans increased $12.6 billion, average securities increased $5.0 billion, and average interest bearing due from banks increased $3.2 billion.
Average deposits increased 62.1% compared to the second quarter of 2024, reflecting strong organic growth as well as the impact of acquired HTLF balances, partially offset by intentional decline in brokered certificate of deposit balances. Average interest-bearing deposits increased 70.2%, and noninterest-bearing demand deposit balances increased 42.6% compared to the second quarter of 2024. Average demand deposit balances comprised 25.9% of total deposits, compared to 26.7% in the linked quarter and 29.4% in the second quarter of 2024.
Average borrowed funds increased $85.1 million as compared to the linked quarter and decreased $1.1 billion as compared to the second quarter of 2024, driven by the acquisition of HTLF and the repayment of borrowings under the BTFP and FHLB advances, respectively.
Noninterest income
Second quarter 2025 noninterest income increased $56.0 million, or 33.7%, on a linked-quarter basis, largely due to:
An increase of $42.5 million in investment securities gains, primarily driven by the pre-tax gain of $29.4 million on the company's investment in Voyager Technologies, Inc., which completed its initial public offering in June 2025, coupled with pre-tax gains of $8.2 million on the sale of two non-marketable investments in the second quarter, as compared to $5.3 million in net losses on the company's non-marketable securities during the linked quarter.
An increase of $3.5 million in trust and securities processing, primarily due to increases of $2.1 million in fund services income, $0.8 million in trust income, and $0.6 million in corporate trust income.
Increases of $2.7 million in bankcard income due to increased interchange income, partially offset by increased rebates expense, and $2.4 million in brokerage income due to higher 12b-1 fees and money market income.
Increases of $1.9 million and $1.6 million in company-owned life insurance income and derivative income, respectively, both recorded in other income. The increase in company-owned life insurance was offset by a proportionate increase in deferred compensation expense as noted below.
Compared to the prior year, noninterest income in the second quarter of 2025 increased $77.3 million, or 53.3%, primarily driven by:
An increase of $39.6 million in investment securities gains, primarily driven by the pre-tax gain of $29.4 million on the company's investment in Voyager Technologies, Inc., coupled with pre-tax gains of $8.2 million on the sale of two non-marketable investments, both recorded in the second quarter of 2025, as compared to $1.8 million in net losses on the company's non-marketable securities during the second quarter of 2024.
An increase of $13.3 million in trust and securities processing driven by increases of $5.0 million in trust income, $4.9 million in fund services income, and $3.3 million in corporate trust income.
Increases of $6.7 million in bankcard income due to increased interchange income, partially offset by increased rebates expense, and $6.5 million in brokerage income due to higher 12b-1 fees and money market income.
An increase of $6.6 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.
An increase of $4.0 million in other income, primarily driven by $1.3 million in recoveries of loans previously charged off by HTLF recorded in the second quarter of 2025, and an increase of $1.1 million in loan syndication income.
GAAP noninterest expense for the second quarter of 2025 was $393.2 million, an increase of $8.4 million, or 2.2%, from the linked quarter and $144.1 million, or 57.9% from the second quarter of 2024. Second quarter 2025 expenses included $13.5 million in total acquisition-related and other nonrecurring costs, compared to $53.2 million in the linked quarter and $9.6 million in the second 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 $380.0 million for the second quarter of 2025, an increase of $49.5 million, or 15.0%, from the linked quarter and an increase of $136.8 million, or 56.3%, from the second quarter of 2024. Noninterest expense in the second quarter of 2025 also included $8.3 million in charitable contribution expenses, compared to $0.5 million in the linked quarter and $0.3 million in the second quarter of 2024.
The linked-quarter increase in GAAP noninterest expense was driven by:
Increases of $16.8 million in salary and wage expense and $0.9 million in deferred compensation expense, recorded in salaries and employee benefits. The increase in salary and wage expense is driven by a full quarter of expense for associates added as a result of the HTLF acquisition, compared to only two months of expense for these associates in the first quarter. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
Increases of $7.8 million in amortization of intangibles driven by the acquisition, $7.7 million in charitable contribution expense, recorded in other expense, and $3.3 million in marketing and business development driven by timing of multiple advertising campaigns and increased travel and entertainment expense. 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 $2.8 million in processing fees due to increased software subscription costs and an increase of $2.5 million in occupancy expense, both driven by additional expense related to the acquisition.
Increases of $1.6 million in supplies and services expense due to purchases of hardware during the second quarter and $1.0 million in regulatory fees driven by the increase in the FDIC assessment base as a result of the acquisition.
These increases were partially offset by the following decreases:
Decreases of $19.0 million in bonus and commission expense, and $8.3 million in payroll taxes and 401(k) expense, both recorded in salaries and employee benefits, driven by severance, retention bonuses, and change in control payments made to HTLF associates in the first quarter. Non-recurring acquisition costs of $4.3 million were included in salaries and employee benefits expense in the second quarter of 2025, as compared to $33.3 million in the linked quarter. This decrease in non-recurring costs was partially offset by higher incentive compensation accruals tied to company performance during the second quarter.
A decrease of $10.1 million in legal and consulting expense, driven by the significant expense recorded in the first quarter of 2025 related to the acquisition. In the first quarter of 2025, $19.0 million of non-recurring transaction costs were recorded in legal and consulting expense, compared to $7.5 million in the second quarter.
The year-over-year increase in GAAP noninterest expense was driven by:
Increases of $70.7 million in salaries and employee benefits expense, driven by the additional associates added as part of the HTLF acquisition, and $23.4 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.
Increases of $13.9 million in processing fees, driven by increased software subscription costs, and $11.6 million in other expense, primarily due to higher charitable contributions and operational losses during the second quarter of 2025.
Increases of $6.8 million in occupancy expense due to branch buildings and office locations added to the company's footprint related to the HTLF acquisition, and $6.7 million in regulatory fees driven by the increase in the FDIC assessment base as a result of the acquisition. Additionally, the second quarter of 2024 included a $3.8 million reduction in the FDIC special assessment as compared to a reduction of $0.7 million in the second quarter of 2025.
Increases of $4.7 million in marketing and business development driven by timing of multiple advertising campaigns and increased travel and entertainment expense, $3.0 million in supplies and services due to increased computer hardware costs in 2025, and $1.9 million in legal and consulting expense due to the timing of multiple projects.
Second quarter 2025 noninterest expense included $13.5 million in total acquisition-related and other nonrecurring costs, compared to $53.2 million in the linked quarter, and $9.6 million in the second quarter of 2024. During the second quarter of 2025, this expense was composed primarily of $7.5 million in legal and consulting expense, $4.3 million in salaries and employee benefits, and $1.1 million in supplies and services expense. During the linked quarter, the $53.2 million in acquisition-related expense was primarily composed of $33.3 million in salaries and employee benefits expense and $19.0 million in legal and consulting expense. During the second quarter of 2024, acquisition-related expense was primarily composed of $9.4 million in legal and consulting expense.
Income taxes
The company's effective tax rate was 18.8% for the six months ended June 30, 2025, compared to 18.9% for the same period in 2024.
Balance sheet
Average total assets for the second quarter of 2025 were $66.9 billion compared to $60.0 billion for the linked quarter and $42.5 billion for the same period in 2024.
Average loans for the second quarter of 2025 increased $4.1 billion, or 12.7%, on a linked-quarter basis and $12.6 billion, or 52.9%, compared to the second 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 11.5% on a linked-quarter basis and 39.4% compared to the second quarter of 2024.
Average deposits increased 10.7% on a linked-quarter basis and 62.1% compared to the second quarter of 2024. These increases reflect continued organic momentum across legacy UMB geographies as well as the impact of acquired HTLF balances.
Capital
At June 30, 2025, the regulatory capital ratios presented in the foregoing table exceeded all 'well-capitalized' regulatory thresholds.
During the second quarter, the company completed an underwritten public offering of Series B non-cumulative perpetual preferred stock that netted approximately $294.1 million in Tier 1 regulatory capital.
In June 2025, the company announced the redemption of $115.0 million in outstanding Series A non-cumulative perpetual preferred stock. This redemption was completed in mid-July 2025.
Asset Quality
Provision for credit losses for the second quarter decreased $65.0 million from the linked quarter and increased $7.0 million from the second quarter of 2024. Provision in the first quarter of 2025 included $62.0 million for Day 1 provision expense to establish an allowance for credit losses on acquired HTLF loans that were designated as non-purchase credit deteriorated (non-PCD) at the close of the transaction. The remainder of 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 second quarter totaled $15.5 million, or 0.17% of average loans, compared to $35.9 million, or 0.45% of average loans in the linked quarter, and $2.9 million, or 0.05% of average loans for the second quarter of 2024. Approximately $6.5 million of the net charge-offs in the second quarter of 2025 were related to loans acquired from HTLF as compared to $29.7 million of the net charge-offs in the first quarter of 2025.
Dividend Declaration
At the company's quarterly board meeting, the Board of Directors declared a $0.40 per share quarterly cash dividend, payable on October 1, 2025, to stockholders of record of the company's common stock at the close of business on September 10, 2025. Additionally, the Board of Directors declared a dividend of $264.79 per share of the Company's Series B 7.75% preferred stock, which results in a dividend of $0.66 per depositary share. The preferred stock dividend is payable on October 15, 2025, to stockholders of record of the preferred stock as of the close of business on September 30, 2025.
Conference Call
The company will host a conference call to discuss its second quarter 2025 earnings results on Wednesday, July 30, 2025, at 8:30 a.m. (CT).
Interested parties may access the call by dialing (toll-free) 833-470-1428 or (international) 404-975-4839 and requesting to join the UMB Financial call with access code 601688. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:
UMB Financial 2Q 2025 Conference Call
A replay of the conference call may be heard through August 13, 2025, by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 929563. 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, 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.
Consolidated Statements of Income
UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
INTEREST INCOME
Loans
$
612,414
$
400,351
$
1,139,818
$
785,917
Securities:
Taxable interest
122,237
61,582
220,533
122,693
Tax-exempt interest
33,024
25,077
62,987
50,410
Total securities income
155,261
86,659
283,520
173,103
Federal funds and resell agreements
8,733
3,674
15,685
6,736
Interest-bearing due from banks
73,874
47,174
148,859
91,862
Trading securities
255
424
625
729
Total interest income
850,537
538,282
1,588,507
1,058,347
INTEREST EXPENSE
Deposits
343,153
240,525
646,559
464,400
Federal funds and repurchase agreements
27,423
28,081
53,213
55,743
Other
12,937
24,568
24,072
53,662
Total interest expense
383,513
293,174
723,844
573,805
Net interest income
467,024
245,108
864,663
484,542
Provision for credit losses
21,000
14,050
107,000
24,050
Net interest income after provision for credit losses
446,024
231,058
757,663
460,492
NONINTEREST INCOME
Trust and securities processing
83,263
70,010
163,044
139,488
Trading and investment banking
6,170
5,461
12,081
10,923
Service charges on deposit accounts
28,865
22,261
56,322
43,018
Insurance fees and commissions
189
267
367
550
Brokerage fees
20,525
14,020
38,627
27,180
Bankcard fees
29,018
22,346
55,311
44,314
Investment securities gains (losses), net
37,685
(1,867
)
32,903
7,504
Other
16,470
12,421
29,728
31,186
Total noninterest income
222,185
144,919
388,383
304,163
NONINTEREST EXPENSE
Salaries and employee benefits
213,551
142,861
434,949
285,867
Occupancy, net
18,571
11,723
34,640
23,993
Equipment
16,426
15,603
33,374
32,106
Supplies and services
6,383
3,404
11,168
6,705
Marketing and business development
11,344
6,598
19,342
12,623
Processing fees
43,638
29,701
84,488
57,637
Legal and consulting
18,468
16,566
47,074
24,460
Bankcard
12,363
11,818
25,158
22,385
Amortization of other intangible assets
25,268
1,911
42,750
3,871
Regulatory fees
9,259
2,568
17,496
21,963
Other
17,897
6,314
27,516
12,261
Total noninterest expense
393,168
249,067
777,955
503,871
Income before income taxes
275,041
126,910
368,091
260,784
Income tax expense
57,647
25,565
69,364
49,181
NET INCOME
217,394
101,345
298,727
211,603
Less: Preferred dividends
2,012
—
4,025
—
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
$
215,382
$
101,345
$
294,702
$
211,603
PER SHARE DATA
Net income per common share – basic
$
2.84
$
2.08
$
4.18
$
4.34
Net income per common share – diluted
2.82
2.07
4.16
4.32
Dividends per common share
0.40
0.39
0.80
0.78
Weighted average common shares outstanding – basic
75,923,082
48,744,636
70,523,171
48,704,075
Weighted average common shares outstanding – diluted
76,241,798
48,974,265
70,901,635
48,952,054
Expand
Consolidated Statements of Comprehensive Income
UMB Financial Corporation
(unaudited, dollars in thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
Net income
$
217,394
$
101,345
$
298,727
$
211,603
Other comprehensive income (loss), before tax:
Unrealized gains and losses on debt securities:
Change in unrealized holding gains and losses, net
43,337
(12,727
)
119,572
(54,280
)
Less: Reclassification adjustment for net gains included in net income
(33
)
—
(423
)
(139
)
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity
7,989
8,938
16,279
17,727
Change in unrealized gains and losses on debt securities
51,293
(3,789
)
135,428
(36,692
)
Unrealized gains and losses on derivative hedges:
Change in unrealized gains and losses on derivative hedges, net
14,386
(8,775
)
37,032
(22,433
)
Less: Reclassification adjustment for net losses (gains) included in net income
2,041
(2,066
)
2,017
(5,726
)
Change in unrealized gains and losses on derivative hedges
16,427
(10,841
)
39,049
(28,159
)
Other comprehensive income (loss), before tax
67,720
(14,630
)
174,477
(64,851
)
Income tax (expense) benefit
(17,069
)
3,534
(43,474
)
16,152
Other comprehensive income (loss)
50,651
(11,096
)
131,003
(48,699
)
Comprehensive income
$
268,045
$
90,249
$
429,730
$
162,904
Expand
Consolidated Statements of Shareholders' Equity
UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
Preferred Stock
Common Stock
Capital Surplus
Retained Earnings
Accumulated Other Comprehensive (Loss) Income
Treasury Stock
Total
Balance - January 1, 2024
$
—
$
55,057
$
1,134,363
$
2,810,824
$
(556,935
)
$
(342,890
)
$
3,100,419
Total comprehensive income (loss)
—
—
—
211,603
(48,699
)
—
162,904
Dividends ($0.78 per share)
—
—
—
(38,275
)
—
—
(38,275
)
Purchase of treasury stock
—
—
—
—
—
(7,537
)
(7,537
)
Issuances of equity awards, net of forfeitures
—
—
(10,964
)
—
—
11,667
703
Recognition of equity-based compensation
—
—
10,040
—
—
—
10,040
Sale of treasury stock
—
—
125
—
—
107
232
Exercise of stock options
—
—
54
—
—
124
178
Common stock issuance costs
—
—
(1,317
)
—
—
—
(1,317
)
Balance - June 30, 2024
$
—
$
55,057
$
1,132,301
$
2,984,152
$
(605,634
)
$
(338,529
)
$
3,227,347
Balance - January 1, 2025
$
—
$
55,057
$
1,145,638
$
3,174,948
$
(573,050
)
$
(336,052
)
$
3,466,541
Total comprehensive income
—
—
—
298,727
131,003
—
429,730
Cash dividends declared:
Preferred dividends ($350.00 per share)
—
—
—
(4,025
)
—
—
(4,025
)
Common dividends ($0.80 per share)
—
—
—
(59,944
)
—
—
(59,944
)
Purchase of treasury stock
—
—
—
—
—
(15,724
)
(15,724
)
Issuances of equity awards, net of forfeitures
—
—
(16,202
)
—
—
17,002
800
Recognition of equity-based compensation
—
—
40,298
—
—
—
40,298
Sale of treasury stock
—
—
169
—
—
143
312
Exercise of stock options
—
—
112
—
—
246
358
Common stock issuance
—
—
67,056
—
—
168,085
235,141
Preferred stock issuance
294,062
—
—
—
—
—
294,062
Stock issuance for acquisition, net of issuance costs
110,705
23,609
2,763,902
—
—
—
2,898,216
Balance - June 30, 2025
$
404,767
$
78,666
$
4,000,973
$
3,409,706
$
(442,047
)
$
(166,300
)
$
7,285,765
Expand
Average Balances / Yields and Rates
UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
Three Months Ended June 30,
2025
2024
Assets
Loans, net of unearned interest
$
36,406,753
6.75
%
$
23,805,829
6.77
%
Securities:
Taxable
13,409,940
3.66
9,033,829
2.74
Tax-exempt
4,273,494
3.87
3,640,028
3.47
Total securities
17,683,434
3.71
12,673,857
2.95
Federal funds and resell agreements
684,747
5.12
246,132
6.00
Interest bearing due from banks
6,660,111
4.45
3,486,907
5.44
Trading securities
16,693
6.54
26,381
6.95
Total earning assets
61,451,738
5.61
40,239,106
5.44
Allowance for credit losses
(367,919
)
(228,369
)
Other assets
5,787,982
2,465,492
Total assets
$
66,871,801
$
42,476,229
Liabilities and Shareholders' Equity
Interest-bearing deposits
$
41,246,157
3.34
%
$
24,237,726
3.99
%
Federal funds and repurchase agreements
2,767,216
3.97
2,421,727
4.66
Borrowed funds
655,575
7.92
1,744,448
5.66
Total interest-bearing liabilities
44,668,948
3.44
28,403,901
4.15
Noninterest-bearing demand deposits
14,403,211
10,103,035
Other liabilities
839,134
767,687
Shareholders' equity
6,960,508
3,201,606
Total liabilities and shareholders' equity
$
66,871,801
$
42,476,229
Net interest spread
2.17
%
1.29
%
Net interest margin
3.10
2.51
Expand
Average Balances / Yields and Rates
UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
Six Months Ended June 30,
2025
2024
Assets
Loans, net of unearned interest
$
34,369,543
6.69
%
$
23,579,936
6.70
%
Securities:
Taxable
12,557,618
3.54
9,149,309
2.70
Tax-exempt
4,197,951
3.78
3,686,075
3.44
Total securities
16,755,569
3.60
12,835,384
2.91
Federal funds and resell agreements
620,632
5.10
226,288
5.99
Interest bearing due from banks
6,733,977
4.46
3,395,466
5.44
Trading securities
18,767
7.10
22,137
7.10
Total earning assets
58,498,488
5.53
40,059,211
5.38
Allowance for credit losses
(344,276
)
(225,243
)
Other assets
5,285,676
2,411,681
Total assets
$
63,439,888
$
42,245,649
Liabilities and Shareholders' Equity
Interest-bearing deposits
$
39,063,362
3.34
%
$
23,848,724
3.92
%
Federal funds and repurchase agreements
2,730,267
3.93
2,403,240
4.66
Borrowed funds
613,236
7.92
1,963,971
5.49
Total interest-bearing liabilities
42,406,865
3.44
28,215,935
4.09
Noninterest-bearing demand deposits
13,918,401
10,084,722
Other liabilities
846,697
772,430
Shareholders' equity
6,267,925
3,172,562
Total liabilities and shareholders' equity
$
63,439,888
$
42,245,649
Net interest spread
2.09
%
1.29
%
Net interest margin
3.04
2.50
Expand
Business Segment Information
UMB Financial Corporation
(unaudited, dollars in thousands)
Three Months Ended June 30, 2025
Net interest income
$
322,619
$
66,331
$
78,074
$
467,024
Provision for credit losses
18,334
430
2,236
21,000
Noninterest income
43,219
107,998
70,968
222,185
Noninterest expense
170,648
105,137
117,383
393,168
Income before taxes
176,856
68,762
29,423
275,041
Income tax expense
37,068
14,412
6,167
57,647
Net income
$
139,788
$
54,350
$
23,256
$
217,394
Three Months Ended June 30, 2024
Net interest income
$
161,163
$
50,826
$
33,119
$
245,108
Provision for credit losses
12,058
268
1,724
14,050
Noninterest income
28,777
94,035
22,107
144,919
Noninterest expense
88,597
92,714
67,756
249,067
Income (loss) before taxes
89,285
51,879
(14,254
)
126,910
Income tax expense (benefit)
17,579
9,573
(1,587
)
25,565
Net income (loss)
$
71,706
$
42,306
$
(12,667
)
$
101,345
Six Months Ended June 30, 2025
Commercial
Banking
Institutional
Banking
Personal
Banking
Total
Net interest income
$
596,536
$
127,489
$
140,638
$
864,663
Provision for credit losses
85,085
865
21,050
107,000
Noninterest income
80,438
211,792
96,153
388,383
Noninterest expense
343,660
212,402
221,893
777,955
Income (loss) before taxes
248,229
126,014
(6,152
)
368,091
Income tax expense (benefit)
46,777
23,746
(1,159
)
69,364
Net income (loss)
$
201,452
$
102,268
$
(4,993
)
$
298,727
Six Months Ended June 30, 2024
Commercial
Banking
Institutional
Banking
Personal
Banking
Total
Net interest income
$
319,145
$
99,951
$
65,446
$
484,542
Provision for credit losses
19,823
502
3,725
24,050
Noninterest income
72,755
185,739
45,669
304,163
Noninterest expense
183,852
190,254
129,765
503,871
Income (loss) before taxes
188,225
94,934
(22,375
)
260,784
Income tax expense (benefit)
34,411
17,161
(2,391
)
49,181
Net income (loss)
$
153,814
$
77,773
$
(19,984
)
$
211,603
Expand
The company has strategically aligned its operations into the following three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking. Senior executive officers regularly evaluate business segment financial results produced by the company's internal reporting system in deciding how to allocate resources and assess performance for individual business segments. The company's reportable segments include certain corporate overhead, technology and service costs that are allocated based on methodologies that are applied consistently between periods. For comparability purposes, amounts in all periods are based on methodologies in effect at June 30, 2025.
Non-GAAP Financial Measures
Net operating income available to common shareholders Non-GAAP reconciliations:
UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net income available to common shareholders (GAAP)
$
215,382
$
101,345
$
294,702
$
211,603
Adjustments:
Day 1 acquisition provision expense
—
—
62,037
—
Acquisition expense
13,494
9,550
66,663
9,981
Severance expense
373
130
818
276
FDIC special assessment
(726
)
(3,800
)
(97
)
9,200
Tax-impact of adjustments (i)
(3,144
)
(1,352
)
(29,866
)
(4,475
)
Total Non-GAAP adjustments (net of tax)
9,997
4,528
99,555
14,982
Net operating income (Non-GAAP)
$
225,379
$
105,873
$
394,257
$
226,585
Earnings per common share - diluted (GAAP)
$
2.82
$
2.07
$
4.16
$
4.32
Day 1 acquisition provision expense
—
—
0.87
—
Acquisition expense
0.19
0.19
0.94
0.20
Severance expense
—
0.01
0.01
0.01
FDIC special assessment
(0.01
)
(0.08
)
—
0.19
Tax-impact of adjustments (i)
(0.04
)
(0.03
)
(0.42
)
(0.09
)
Operating earnings per common share - diluted (Non-GAAP)
$
2.96
$
2.16
$
5.56
$
4.63
GAAP
Return on average assets
1.29
%
0.96
%
0.94
%
1.01
%
Return on average common equity
12.72
12.73
9.67
13.41
Non-GAAP
Operating return on average assets
1.35
%
1.00
%
1.25
%
1.08
%
Operating return on average common equity
13.31
13.30
12.94
14.36
(i) Calculated using the company's marginal tax rate of 24.0% for 2025 and 23.0% for 2024. Certain merger-related expenses are non-deductible.
Expand
Operating pre-tax, pre-provision income non-GAAP reconciliations:
UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net interest income (GAAP)
$
467,024
$
245,108
$
864,663
$
484,542
Noninterest income (GAAP)
222,185
144,919
388,383
304,163
Noninterest expense (GAAP)
393,168
249,067
777,955
503,871
Adjustments to arrive at operating noninterest expense:
Acquisition expense
13,494
9,550
66,663
9,981
Severance expense
373
130
818
276
FDIC special assessment
(726
)
(3,800
)
(97
)
9,200
Total Non-GAAP adjustments
13,141
5,880
67,384
19,457
Operating noninterest expense (Non-GAAP)
380,027
243,187
710,571
484,414
Operating pre-tax, pre-provision income (Non-GAAP)
$
309,182
$
146,840
$
542,475
$
304,291
Net interest income earnings per common share - diluted (GAAP)
$
6.13
$
5.00
$
12.20
$
9.90
Noninterest income (GAAP)
2.91
2.96
5.47
6.21
Noninterest expense (GAAP)
5.16
5.08
10.97
10.29
Acquisition expense
0.19
0.19
0.94
0.20
Severance expense
—
0.01
0.01
0.01
FDIC special assessment
(0.01
)
(0.08
)
—
0.19
Operating pre-tax, pre-provision earnings per common share - diluted (Non-GAAP)
$
4.06
$
3.00
$
7.65
$
6.22
Expand
Operating pre-tax, pre-provision income - FTE Non-GAAP reconciliations:
UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net interest income (GAAP)
$
467,024
$
245,108
$
864,663
$
484,542
Adjustments to arrive at net interest income - FTE:
Tax equivalent interest
8,291
6,407
15,796
12,923
Net interest income - FTE (Non-GAAP)
475,315
251,515
880,459
497,465
Noninterest income (GAAP)
222,185
144,919
388,383
304,163
Noninterest expense (GAAP)
393,168
249,067
777,955
503,871
Adjustments to arrive at operating noninterest expense:
Acquisition expense
13,494
9,550
66,663
9,981
Severance expense
373
130
818
276
FDIC special assessment
(726
)
(3,800
)
(97
)
9,200
Total Non-GAAP adjustments
13,141
5,880
67,384
19,457
Operating noninterest expense (Non-GAAP)
380,027
243,187
710,571
484,414
Operating pre-tax, pre-provision income - FTE (Non-GAAP)
$
317,473
$
153,247
$
558,271
$
317,214
Net interest income earnings per common share - diluted (GAAP)
$
6.13
$
5.00
$
12.20
$
9.90
Tax equivalent interest
0.11
0.13
0.22
0.26
Net interest income - FTE (Non-GAAP)
6.24
5.13
12.42
10.16
Noninterest income (GAAP)
2.91
2.96
5.47
6.21
Noninterest expense (GAAP)
5.16
5.08
10.97
10.29
Acquisition expense
0.19
0.19
0.94
0.20
Severance expense
—
0.01
0.01
0.01
FDIC special assessment
(0.01
)
(0.08
)
—
0.19
Operating pre-tax, pre-provision income - FTE earnings per common share - diluted (Non-GAAP)
$
4.17
$
3.13
$
7.87
$
6.48
Expand
Tangible book value non-GAAP reconciliations:
UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
As of June 30,
2025
2024
Total common shareholders' equity (GAAP)
$
6,885,023
$
3,227,347
Less: Intangible assets
Goodwill
1,812,694
207,385
Other intangibles, net
531,918
67,141
Total intangibles, net
2,344,612
274,526
Total tangible common shareholders' equity (Non-GAAP)
$
4,540,411
$
2,952,821
Total common shares outstanding
75,927,002
48,745,090
Ratio of total common shareholders' equity (book value) per share
$
90.68
$
66.21
Ratio of total tangible common shareholders' equity (tangible book value) per share (Non-GAAP)
59.80
60.58
Expand
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 $225.4 million, or $2.96 per diluted share, for the second quarter of 2025, compared to $168.9 million, or $2.58 per diluted share, for the linked quarter and $105.9 million, or $2.16 per diluted share, for the second 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 $309.2 million, or $4.06 per diluted share, for the second quarter of 2025, compared to $233.3 million, or $3.57 per diluted share, for the linked quarter, and $146.8 million, or $3.00 per diluted share, for the second quarter of 2024. These operating PTPP results represent increases of 32.5% on a linked-quarter basis and 110.6% compared to the second quarter of 2024.
'Our strong second quarter financial results were once again facilitated by strong growth on both sides of our balance sheet, outsized fee income gains, improved asset quality metrics and improved operating leverage,' said Mariner Kemper, UMB Financial Corporation chairman and chief executive officer. 'Total revenues of $689.2 million in the second quarter represented a 22.2% increase from the prior quarter, driven both by organic growth from legacy UMB operations as well as the continued benefits of the acquired Heartland franchise. On a linked quarter basis, average loans increased 12.7% to $36.4 billion while average deposits increased 10.7% to $55.6 billion. On an operating basis, net operating income available to common shareholders more than doubled to $225.4 million from the year-ago quarter and increased 33.5% from the linked quarter. Net interest margin expanded 14 basis points sequentially to 3.10%, driven by the benefits of Heartland's granular core deposit base. Fee income benefited primarily from net increases in the value of the portfolio investments managed by UMB Capital Corporation as well as other private investments. We have a successful track record of investing in and financing emerging businesses, and we had yet another successful outcome with our investment in Voyager Technologies, Inc. which went public in June resulting in a pre-tax gain of $29.4 million in the second quarter. Net charge-offs for the second quarter improved to $15.5 million or 17 basis points of average loans which included $6.5 million in losses related to the acquired Heartland loan portfolio."
Kemper continued, 'I am extremely proud of the teams that continue to work tirelessly to deliver a seamless transition to our customers from the Heartland acquisition. In July, we successfully converted the Minnesota franchise of Heartland to the core UMB platform and remain on track to convert the rest of the acquired operations in October.'
Second Quarter 2025 earnings discussion
Note: The acquisition of HTLF closed on January 31, 2025; as such, financial results for the second quarter of 2025 include three months of impact from the acquired operations, compared to two months of impact in the first quarter of 2025. Financial results in the second quarter of 2024 were impacted by $9.6 million in acquisition-related expense and do not include any impact of the acquired operations of HTLF.
Summary of revenue
UMB Financial Corporation
(unaudited, dollars in thousands)
Q2
Q1
Q2
CQ vs.
CQ vs.
2025
2025
2024
LQ
PY
Net interest income
$
467,024
$
397,639
$
245,108
$
69,385
$
221,916
Noninterest income:
Trust and securities processing
83,263
79,781
70,010
3,482
13,253
Trading and investment banking
6,170
5,911
5,461
259
709
Service charges on deposit accounts
28,865
27,457
22,261
1,408
6,604
Insurance fees and commissions
189
178
267
11
(78
)
Brokerage fees
20,525
18,102
14,020
2,423
6,505
Bankcard fees
29,018
26,293
22,346
2,725
6,672
Investment securities gains (losses), net
37,685
(4,782
)
(1,867
)
42,467
39,552
Other
16,470
13,258
12,421
3,212
4,049
Total noninterest income
$
222,185
$
166,198
$
144,919
$
55,987
$
77,266
Total revenue
$
689,209
$
563,837
$
390,027
$
125,372
$
299,182
Net interest income (FTE)
$
475,315
$
405,144
$
251,515
Net interest margin (FTE)
3.10
%
2.96
%
2.51
%
Total noninterest income as a % of total revenue
32.2
29.5
37.2
Expand
Net interest income
Second quarter 2025 net interest income totaled $467.0 million, an increase of $69.4 million, or 17.4%, from the linked quarter, driven primarily by continued organic growth in average loans, and one additional month of benefit from the acquired HTLF franchise, including the favorable impact of purchase accounting accretion attributable to the acquisition. These increases were partially offset by higher interest expense driven by strong deposit growth.
Average earning assets increased $5.9 billion, or 10.6%, from the linked quarter, largely driven by an increase of $4.1 billion in average loans and an increase of $1.8 billion in average securities.
Average interest-bearing liabilities increased $4.5 billion, or 11.3%, from the linked quarter, primarily driven by an increase of $4.4 billion, or 11.9%, in interest-bearing deposits. Average non-interest bearing deposits increased $975.0 million, or 7.3%, as compared to the linked quarter.
Net interest margin for the second quarter was 3.10%, an increase of 14 basis points from the linked quarter, due to higher yields on loans and securities driven in large part by the net impact of purchase accounting accretion income on acquired assets and liabilities from HTLF, and earning asset mix changes. Average loan yields increased 13 basis points and total earning asset yields increased 17 basis points from the linked quarter. Total cost of funds increased two basis points from the linked quarter to 2.60%.
On a year-over-year basis, net interest income increased $221.9 million, or 90.5%, driven by a $21.2 billion, or 52.7%, increase in average earning assets, primarily due to rate and mix changes related to the acquisition of HTLF. Average loans increased $12.6 billion, average securities increased $5.0 billion, and average interest bearing due from banks increased $3.2 billion.
Average deposits increased 62.1% compared to the second quarter of 2024, reflecting strong organic growth as well as the impact of acquired HTLF balances, partially offset by intentional decline in brokered certificate of deposit balances. Average interest-bearing deposits increased 70.2%, and noninterest-bearing demand deposit balances increased 42.6% compared to the second quarter of 2024. Average demand deposit balances comprised 25.9% of total deposits, compared to 26.7% in the linked quarter and 29.4% in the second quarter of 2024.
Average borrowed funds increased $85.1 million as compared to the linked quarter and decreased $1.1 billion as compared to the second quarter of 2024, driven by the acquisition of HTLF and the repayment of borrowings under the BTFP and FHLB advances, respectively.
Noninterest income
Second quarter 2025 noninterest income increased $56.0 million, or 33.7%, on a linked-quarter basis, largely due to:
An increase of $42.5 million in investment securities gains, primarily driven by the pre-tax gain of $29.4 million on the company's investment in Voyager Technologies, Inc., which completed its initial public offering in June 2025, coupled with pre-tax gains of $8.2 million on the sale of two non-marketable investments in the second quarter, as compared to $5.3 million in net losses on the company's non-marketable securities during the linked quarter.
An increase of $3.5 million in trust and securities processing, primarily due to increases of $2.1 million in fund services income, $0.8 million in trust income, and $0.6 million in corporate trust income.
Increases of $2.7 million in bankcard income due to increased interchange income, partially offset by increased rebates expense, and $2.4 million in brokerage income due to higher 12b-1 fees and money market income.
Increases of $1.9 million and $1.6 million in company-owned life insurance income and derivative income, respectively, both recorded in other income. The increase in company-owned life insurance was offset by a proportionate increase in deferred compensation expense as noted below.
Compared to the prior year, noninterest income in the second quarter of 2025 increased $77.3 million, or 53.3%, primarily driven by:
An increase of $39.6 million in investment securities gains, primarily driven by the pre-tax gain of $29.4 million on the company's investment in Voyager Technologies, Inc., coupled with pre-tax gains of $8.2 million on the sale of two non-marketable investments, both recorded in the second quarter of 2025, as compared to $1.8 million in net losses on the company's non-marketable securities during the second quarter of 2024.
An increase of $13.3 million in trust and securities processing driven by increases of $5.0 million in trust income, $4.9 million in fund services income, and $3.3 million in corporate trust income.
Increases of $6.7 million in bankcard income due to increased interchange income, partially offset by increased rebates expense, and $6.5 million in brokerage income due to higher 12b-1 fees and money market income.
An increase of $6.6 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.
An increase of $4.0 million in other income, primarily driven by $1.3 million in recoveries of loans previously charged off by HTLF recorded in the second quarter of 2025, and an increase of $1.1 million in loan syndication income.
GAAP noninterest expense for the second quarter of 2025 was $393.2 million, an increase of $8.4 million, or 2.2%, from the linked quarter and $144.1 million, or 57.9% from the second quarter of 2024. Second quarter 2025 expenses included $13.5 million in total acquisition-related and other nonrecurring costs, compared to $53.2 million in the linked quarter and $9.6 million in the second 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 $380.0 million for the second quarter of 2025, an increase of $49.5 million, or 15.0%, from the linked quarter and an increase of $136.8 million, or 56.3%, from the second quarter of 2024. Noninterest expense in the second quarter of 2025 also included $8.3 million in charitable contribution expenses, compared to $0.5 million in the linked quarter and $0.3 million in the second quarter of 2024.
The linked-quarter increase in GAAP noninterest expense was driven by:
Increases of $16.8 million in salary and wage expense and $0.9 million in deferred compensation expense, recorded in salaries and employee benefits. The increase in salary and wage expense is driven by a full quarter of expense for associates added as a result of the HTLF acquisition, compared to only two months of expense for these associates in the first quarter. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
Increases of $7.8 million in amortization of intangibles driven by the acquisition, $7.7 million in charitable contribution expense, recorded in other expense, and $3.3 million in marketing and business development driven by timing of multiple advertising campaigns and increased travel and entertainment expense. 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 $2.8 million in processing fees due to increased software subscription costs and an increase of $2.5 million in occupancy expense, both driven by additional expense related to the acquisition.
Increases of $1.6 million in supplies and services expense due to purchases of hardware during the second quarter and $1.0 million in regulatory fees driven by the increase in the FDIC assessment base as a result of the acquisition.
These increases were partially offset by the following decreases:
Decreases of $19.0 million in bonus and commission expense, and $8.3 million in payroll taxes and 401(k) expense, both recorded in salaries and employee benefits, driven by severance, retention bonuses, and change in control payments made to HTLF associates in the first quarter. Non-recurring acquisition costs of $4.3 million were included in salaries and employee benefits expense in the second quarter of 2025, as compared to $33.3 million in the linked quarter. This decrease in non-recurring costs was partially offset by higher incentive compensation accruals tied to company performance during the second quarter.
A decrease of $10.1 million in legal and consulting expense, driven by the significant expense recorded in the first quarter of 2025 related to the acquisition. In the first quarter of 2025, $19.0 million of non-recurring transaction costs were recorded in legal and consulting expense, compared to $7.5 million in the second quarter.
The year-over-year increase in GAAP noninterest expense was driven by:
Increases of $70.7 million in salaries and employee benefits expense, driven by the additional associates added as part of the HTLF acquisition, and $23.4 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.
Increases of $13.9 million in processing fees, driven by increased software subscription costs, and $11.6 million in other expense, primarily due to higher charitable contributions and operational losses during the second quarter of 2025.
Increases of $6.8 million in occupancy expense due to branch buildings and office locations added to the company's footprint related to the HTLF acquisition, and $6.7 million in regulatory fees driven by the increase in the FDIC assessment base as a result of the acquisition. Additionally, the second quarter of 2024 included a $3.8 million reduction in the FDIC special assessment as compared to a reduction of $0.7 million in the second quarter of 2025.
Increases of $4.7 million in marketing and business development driven by timing of multiple advertising campaigns and increased travel and entertainment expense, $3.0 million in supplies and services due to increased computer hardware costs in 2025, and $1.9 million in legal and consulting expense due to the timing of multiple projects.
Second quarter 2025 noninterest expense included $13.5 million in total acquisition-related and other nonrecurring costs, compared to $53.2 million in the linked quarter, and $9.6 million in the second quarter of 2024. During the second quarter of 2025, this expense was composed primarily of $7.5 million in legal and consulting expense, $4.3 million in salaries and employee benefits, and $1.1 million in supplies and services expense. During the linked quarter, the $53.2 million in acquisition-related expense was primarily composed of $33.3 million in salaries and employee benefits expense and $19.0 million in legal and consulting expense. During the second quarter of 2024, acquisition-related expense was primarily composed of $9.4 million in legal and consulting expense.
Income taxes
The company's effective tax rate was 18.8% for the six months ended June 30, 2025, compared to 18.9% for the same period in 2024.
Balance sheet
Average total assets for the second quarter of 2025 were $66.9 billion compared to $60.0 billion for the linked quarter and $42.5 billion for the same period in 2024.
Average loans for the second quarter of 2025 increased $4.1 billion, or 12.7%, on a linked-quarter basis and $12.6 billion, or 52.9%, compared to the second 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 11.5% on a linked-quarter basis and 39.4% compared to the second quarter of 2024.
Average deposits increased 10.7% on a linked-quarter basis and 62.1% compared to the second quarter of 2024. These increases reflect continued organic momentum across legacy UMB geographies as well as the impact of acquired HTLF balances.
Capital
At June 30, 2025, the regulatory capital ratios presented in the foregoing table exceeded all 'well-capitalized' regulatory thresholds.
During the second quarter, the company completed an underwritten public offering of Series B non-cumulative perpetual preferred stock that netted approximately $294.1 million in Tier 1 regulatory capital.
In June 2025, the company announced the redemption of $115.0 million in outstanding Series A non-cumulative perpetual preferred stock. This redemption was completed in mid-July 2025.
Asset Quality
Provision for credit losses for the second quarter decreased $65.0 million from the linked quarter and increased $7.0 million from the second quarter of 2024. Provision in the first quarter of 2025 included $62.0 million for Day 1 provision expense to establish an allowance for credit losses on acquired HTLF loans that were designated as non-purchase credit deteriorated (non-PCD) at the close of the transaction. The remainder of 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 second quarter totaled $15.5 million, or 0.17% of average loans, compared to $35.9 million, or 0.45% of average loans in the linked quarter, and $2.9 million, or 0.05% of average loans for the second quarter of 2024. Approximately $6.5 million of the net charge-offs in the second quarter of 2025 were related to loans acquired from HTLF as compared to $29.7 million of the net charge-offs in the first quarter of 2025.
Dividend Declaration
At the company's quarterly board meeting, the Board of Directors declared a $0.40 per share quarterly cash dividend, payable on October 1, 2025, to stockholders of record of the company's common stock at the close of business on September 10, 2025. Additionally, the Board of Directors declared a dividend of $264.79 per share of the Company's Series B 7.75% preferred stock, which results in a dividend of $0.66 per depositary share. The preferred stock dividend is payable on October 15, 2025, to stockholders of record of the preferred stock as of the close of business on September 30, 2025.
Conference Call
The company will host a conference call to discuss its second quarter 2025 earnings results on Wednesday, July 30, 2025, at 8:30 a.m. (CT).
Interested parties may access the call by dialing (toll-free) 833-470-1428 or (international) 404-975-4839 and requesting to join the UMB Financial call with access code 601688. The live call may also be accessed by visiting investorrelations.umb.com or by using the following link:
UMB Financial 2Q 2025 Conference Call
A replay of the conference call may be heard through August 13, 2025, by calling (toll-free) 866-813-9403 or (international) 929-458-6194. The replay access code required for playback is 929563. 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, 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.
Consolidated Statements of Income
UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
INTEREST INCOME
Loans
$
612,414
$
400,351
$
1,139,818
$
785,917
Securities:
Taxable interest
122,237
61,582
220,533
122,693
Tax-exempt interest
33,024
25,077
62,987
50,410
Total securities income
155,261
86,659
283,520
173,103
Federal funds and resell agreements
8,733
3,674
15,685
6,736
Interest-bearing due from banks
73,874
47,174
148,859
91,862
Trading securities
255
424
625
729
Total interest income
850,537
538,282
1,588,507
1,058,347
INTEREST EXPENSE
Deposits
343,153
240,525
646,559
464,400
Federal funds and repurchase agreements
27,423
28,081
53,213
55,743
Other
12,937
24,568
24,072
53,662
Total interest expense
383,513
293,174
723,844
573,805
Net interest income
467,024
245,108
864,663
484,542
Provision for credit losses
21,000
14,050
107,000
24,050
Net interest income after provision for credit losses
446,024
231,058
757,663
460,492
NONINTEREST INCOME
Trust and securities processing
83,263
70,010
163,044
139,488
Trading and investment banking
6,170
5,461
12,081
10,923
Service charges on deposit accounts
28,865
22,261
56,322
43,018
Insurance fees and commissions
189
267
367
550
Brokerage fees
20,525
14,020
38,627
27,180
Bankcard fees
29,018
22,346
55,311
44,314
Investment securities gains (losses), net
37,685
(1,867
)
32,903
7,504
Other
16,470
12,421
29,728
31,186
Total noninterest income
222,185
144,919
388,383
304,163
NONINTEREST EXPENSE
Salaries and employee benefits
213,551
142,861
434,949
285,867
Occupancy, net
18,571
11,723
34,640
23,993
Equipment
16,426
15,603
33,374
32,106
Supplies and services
6,383
3,404
11,168
6,705
Marketing and business development
11,344
6,598
19,342
12,623
Processing fees
43,638
29,701
84,488
57,637
Legal and consulting
18,468
16,566
47,074
24,460
Bankcard
12,363
11,818
25,158
22,385
Amortization of other intangible assets
25,268
1,911
42,750
3,871
Regulatory fees
9,259
2,568
17,496
21,963
Other
17,897
6,314
27,516
12,261
Total noninterest expense
393,168
249,067
777,955
503,871
Income before income taxes
275,041
126,910
368,091
260,784
Income tax expense
57,647
25,565
69,364
49,181
NET INCOME
217,394
101,345
298,727
211,603
Less: Preferred dividends
2,012
—
4,025
—
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
$
215,382
$
101,345
$
294,702
$
211,603
PER SHARE DATA
Net income per common share – basic
$
2.84
$
2.08
$
4.18
$
4.34
Net income per common share – diluted
2.82
2.07
4.16
4.32
Dividends per common share
0.40
0.39
0.80
0.78
Weighted average common shares outstanding – basic
75,923,082
48,744,636
70,523,171
48,704,075
Weighted average common shares outstanding – diluted
76,241,798
48,974,265
70,901,635
48,952,054
Expand
Consolidated Statements of Comprehensive Income
UMB Financial Corporation
(unaudited, dollars in thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
Net income
$
217,394
$
101,345
$
298,727
$
211,603
Other comprehensive income (loss), before tax:
Unrealized gains and losses on debt securities:
Change in unrealized holding gains and losses, net
43,337
(12,727
)
119,572
(54,280
)
Less: Reclassification adjustment for net gains included in net income
(33
)
—
(423
)
(139
)
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity
7,989
8,938
16,279
17,727
Change in unrealized gains and losses on debt securities
51,293
(3,789
)
135,428
(36,692
)
Unrealized gains and losses on derivative hedges:
Change in unrealized gains and losses on derivative hedges, net
14,386
(8,775
)
37,032
(22,433
)
Less: Reclassification adjustment for net losses (gains) included in net income
2,041
(2,066
)
2,017
(5,726
)
Change in unrealized gains and losses on derivative hedges
16,427
(10,841
)
39,049
(28,159
)
Other comprehensive income (loss), before tax
67,720
(14,630
)
174,477
(64,851
)
Income tax (expense) benefit
(17,069
)
3,534
(43,474
)
16,152
Other comprehensive income (loss)
50,651
(11,096
)
131,003
(48,699
)
Comprehensive income
$
268,045
$
90,249
$
429,730
$
162,904
Expand
Consolidated Statements of Shareholders' Equity
UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
Preferred Stock
Common Stock
Capital Surplus
Retained Earnings
Accumulated Other Comprehensive (Loss) Income
Treasury Stock
Total
Balance - January 1, 2024
$
—
$
55,057
$
1,134,363
$
2,810,824
$
(556,935
)
$
(342,890
)
$
3,100,419
Total comprehensive income (loss)
—
—
—
211,603
(48,699
)
—
162,904
Dividends ($0.78 per share)
—
—
—
(38,275
)
—
—
(38,275
)
Purchase of treasury stock
—
—
—
—
—
(7,537
)
(7,537
)
Issuances of equity awards, net of forfeitures
—
—
(10,964
)
—
—
11,667
703
Recognition of equity-based compensation
—
—
10,040
—
—
—
10,040
Sale of treasury stock
—
—
125
—
—
107
232
Exercise of stock options
—
—
54
—
—
124
178
Common stock issuance costs
—
—
(1,317
)
—
—
—
(1,317
)
Balance - June 30, 2024
$
—
$
55,057
$
1,132,301
$
2,984,152
$
(605,634
)
$
(338,529
)
$
3,227,347
Balance - January 1, 2025
$
—
$
55,057
$
1,145,638
$
3,174,948
$
(573,050
)
$
(336,052
)
$
3,466,541
Total comprehensive income
—
—
—
298,727
131,003
—
429,730
Cash dividends declared:
Preferred dividends ($350.00 per share)
—
—
—
(4,025
)
—
—
(4,025
)
Common dividends ($0.80 per share)
—
—
—
(59,944
)
—
—
(59,944
)
Purchase of treasury stock
—
—
—
—
—
(15,724
)
(15,724
)
Issuances of equity awards, net of forfeitures
—
—
(16,202
)
—
—
17,002
800
Recognition of equity-based compensation
—
—
40,298
—
—
—
40,298
Sale of treasury stock
—
—
169
—
—
143
312
Exercise of stock options
—
—
112
—
—
246
358
Common stock issuance
—
—
67,056
—
—
168,085
235,141
Preferred stock issuance
294,062
—
—
—
—
—
294,062
Stock issuance for acquisition, net of issuance costs
110,705
23,609
2,763,902
—
—
—
2,898,216
Balance - June 30, 2025
$
404,767
$
78,666
$
4,000,973
$
3,409,706
$
(442,047
)
$
(166,300
)
$
7,285,765
Expand
Average Balances / Yields and Rates
UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
Three Months Ended June 30,
2025
2024
Assets
Loans, net of unearned interest
$
36,406,753
6.75
%
$
23,805,829
6.77
%
Securities:
Taxable
13,409,940
3.66
9,033,829
2.74
Tax-exempt
4,273,494
3.87
3,640,028
3.47
Total securities
17,683,434
3.71
12,673,857
2.95
Federal funds and resell agreements
684,747
5.12
246,132
6.00
Interest bearing due from banks
6,660,111
4.45
3,486,907
5.44
Trading securities
16,693
6.54
26,381
6.95
Total earning assets
61,451,738
5.61
40,239,106
5.44
Allowance for credit losses
(367,919
)
(228,369
)
Other assets
5,787,982
2,465,492
Total assets
$
66,871,801
$
42,476,229
Liabilities and Shareholders' Equity
Interest-bearing deposits
$
41,246,157
3.34
%
$
24,237,726
3.99
%
Federal funds and repurchase agreements
2,767,216
3.97
2,421,727
4.66
Borrowed funds
655,575
7.92
1,744,448
5.66
Total interest-bearing liabilities
44,668,948
3.44
28,403,901
4.15
Noninterest-bearing demand deposits
14,403,211
10,103,035
Other liabilities
839,134
767,687
Shareholders' equity
6,960,508
3,201,606
Total liabilities and shareholders' equity
$
66,871,801
$
42,476,229
Net interest spread
2.17
%
1.29
%
Net interest margin
3.10
2.51
Expand
Average Balances / Yields and Rates
UMB Financial Corporation
(tax - equivalent basis)
(unaudited, dollars in thousands)
Six Months Ended June 30,
2025
2024
Assets
Loans, net of unearned interest
$
34,369,543
6.69
%
$
23,579,936
6.70
%
Securities:
Taxable
12,557,618
3.54
9,149,309
2.70
Tax-exempt
4,197,951
3.78
3,686,075
3.44
Total securities
16,755,569
3.60
12,835,384
2.91
Federal funds and resell agreements
620,632
5.10
226,288
5.99
Interest bearing due from banks
6,733,977
4.46
3,395,466
5.44
Trading securities
18,767
7.10
22,137
7.10
Total earning assets
58,498,488
5.53
40,059,211
5.38
Allowance for credit losses
(344,276
)
(225,243
)
Other assets
5,285,676
2,411,681
Total assets
$
63,439,888
$
42,245,649
Liabilities and Shareholders' Equity
Interest-bearing deposits
$
39,063,362
3.34
%
$
23,848,724
3.92
%
Federal funds and repurchase agreements
2,730,267
3.93
2,403,240
4.66
Borrowed funds
613,236
7.92
1,963,971
5.49
Total interest-bearing liabilities
42,406,865
3.44
28,215,935
4.09
Noninterest-bearing demand deposits
13,918,401
10,084,722
Other liabilities
846,697
772,430
Shareholders' equity
6,267,925
3,172,562
Total liabilities and shareholders' equity
$
63,439,888
$
42,245,649
Net interest spread
2.09
%
1.29
%
Net interest margin
3.04
2.50
Expand
Business Segment Information
UMB Financial Corporation
(unaudited, dollars in thousands)
Three Months Ended June 30, 2025
Net interest income
$
322,619
$
66,331
$
78,074
$
467,024
Provision for credit losses
18,334
430
2,236
21,000
Noninterest income
43,219
107,998
70,968
222,185
Noninterest expense
170,648
105,137
117,383
393,168
Income before taxes
176,856
68,762
29,423
275,041
Income tax expense
37,068
14,412
6,167
57,647
Net income
$
139,788
$
54,350
$
23,256
$
217,394
Three Months Ended June 30, 2024
Net interest income
$
161,163
$
50,826
$
33,119
$
245,108
Provision for credit losses
12,058
268
1,724
14,050
Noninterest income
28,777
94,035
22,107
144,919
Noninterest expense
88,597
92,714
67,756
249,067
Income (loss) before taxes
89,285
51,879
(14,254
)
126,910
Income tax expense (benefit)
17,579
9,573
(1,587
)
25,565
Net income (loss)
$
71,706
$
42,306
$
(12,667
)
$
101,345
Six Months Ended June 30, 2025
Commercial
Banking
Institutional
Banking
Personal
Banking
Total
Net interest income
$
596,536
$
127,489
$
140,638
$
864,663
Provision for credit losses
85,085
865
21,050
107,000
Noninterest income
80,438
211,792
96,153
388,383
Noninterest expense
343,660
212,402
221,893
777,955
Income (loss) before taxes
248,229
126,014
(6,152
)
368,091
Income tax expense (benefit)
46,777
23,746
(1,159
)
69,364
Net income (loss)
$
201,452
$
102,268
$
(4,993
)
$
298,727
Six Months Ended June 30, 2024
Commercial
Banking
Institutional
Banking
Personal
Banking
Total
Net interest income
$
319,145
$
99,951
$
65,446
$
484,542
Provision for credit losses
19,823
502
3,725
24,050
Noninterest income
72,755
185,739
45,669
304,163
Noninterest expense
183,852
190,254
129,765
503,871
Income (loss) before taxes
188,225
94,934
(22,375
)
260,784
Income tax expense (benefit)
34,411
17,161
(2,391
)
49,181
Net income (loss)
$
153,814
$
77,773
$
(19,984
)
$
211,603
Expand
The company has strategically aligned its operations into the following three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking. Senior executive officers regularly evaluate business segment financial results produced by the company's internal reporting system in deciding how to allocate resources and assess performance for individual business segments. The company's reportable segments include certain corporate overhead, technology and service costs that are allocated based on methodologies that are applied consistently between periods. For comparability purposes, amounts in all periods are based on methodologies in effect at June 30, 2025.
Non-GAAP Financial Measures
Net operating income available to common shareholders Non-GAAP reconciliations:
UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net income available to common shareholders (GAAP)
$
215,382
$
101,345
$
294,702
$
211,603
Adjustments:
Day 1 acquisition provision expense
—
—
62,037
—
Acquisition expense
13,494
9,550
66,663
9,981
Severance expense
373
130
818
276
FDIC special assessment
(726
)
(3,800
)
(97
)
9,200
Tax-impact of adjustments (i)
(3,144
)
(1,352
)
(29,866
)
(4,475
)
Total Non-GAAP adjustments (net of tax)
9,997
4,528
99,555
14,982
Net operating income (Non-GAAP)
$
225,379
$
105,873
$
394,257
$
226,585
Earnings per common share - diluted (GAAP)
$
2.82
$
2.07
$
4.16
$
4.32
Day 1 acquisition provision expense
—
—
0.87
—
Acquisition expense
0.19
0.19
0.94
0.20
Severance expense
—
0.01
0.01
0.01
FDIC special assessment
(0.01
)
(0.08
)
—
0.19
Tax-impact of adjustments (i)
(0.04
)
(0.03
)
(0.42
)
(0.09
)
Operating earnings per common share - diluted (Non-GAAP)
$
2.96
$
2.16
$
5.56
$
4.63
GAAP
Return on average assets
1.29
%
0.96
%
0.94
%
1.01
%
Return on average common equity
12.72
12.73
9.67
13.41
Non-GAAP
Operating return on average assets
1.35
%
1.00
%
1.25
%
1.08
%
Operating return on average common equity
13.31
13.30
12.94
14.36
(i) Calculated using the company's marginal tax rate of 24.0% for 2025 and 23.0% for 2024. Certain merger-related expenses are non-deductible.
Expand
Operating pre-tax, pre-provision income non-GAAP reconciliations:
UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net interest income (GAAP)
$
467,024
$
245,108
$
864,663
$
484,542
Noninterest income (GAAP)
222,185
144,919
388,383
304,163
Noninterest expense (GAAP)
393,168
249,067
777,955
503,871
Adjustments to arrive at operating noninterest expense:
Acquisition expense
13,494
9,550
66,663
9,981
Severance expense
373
130
818
276
FDIC special assessment
(726
)
(3,800
)
(97
)
9,200
Total Non-GAAP adjustments
13,141
5,880
67,384
19,457
Operating noninterest expense (Non-GAAP)
380,027
243,187
710,571
484,414
Operating pre-tax, pre-provision income (Non-GAAP)
$
309,182
$
146,840
$
542,475
$
304,291
Net interest income earnings per common share - diluted (GAAP)
$
6.13
$
5.00
$
12.20
$
9.90
Noninterest income (GAAP)
2.91
2.96
5.47
6.21
Noninterest expense (GAAP)
5.16
5.08
10.97
10.29
Acquisition expense
0.19
0.19
0.94
0.20
Severance expense
—
0.01
0.01
0.01
FDIC special assessment
(0.01
)
(0.08
)
—
0.19
Operating pre-tax, pre-provision earnings per common share - diluted (Non-GAAP)
$
4.06
$
3.00
$
7.65
$
6.22
Expand
Operating pre-tax, pre-provision income - FTE Non-GAAP reconciliations:
UMB Financial Corporation
(unaudited, dollars in thousands except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
Net interest income (GAAP)
$
467,024
$
245,108
$
864,663
$
484,542
Adjustments to arrive at net interest income - FTE:
Tax equivalent interest
8,291
6,407
15,796
12,923
Net interest income - FTE (Non-GAAP)
475,315
251,515
880,459
497,465
Noninterest income (GAAP)
222,185
144,919
388,383
304,163
Noninterest expense (GAAP)
393,168
249,067
777,955
503,871
Adjustments to arrive at operating noninterest expense:
Acquisition expense
13,494
9,550
66,663
9,981
Severance expense
373
130
818
276
FDIC special assessment
(726
)
(3,800
)
(97
)
9,200
Total Non-GAAP adjustments
13,141
5,880
67,384
19,457
Operating noninterest expense (Non-GAAP)
380,027
243,187
710,571
484,414
Operating pre-tax, pre-provision income - FTE (Non-GAAP)
$
317,473
$
153,247
$
558,271
$
317,214
Net interest income earnings per common share - diluted (GAAP)
$
6.13
$
5.00
$
12.20
$
9.90
Tax equivalent interest
0.11
0.13
0.22
0.26
Net interest income - FTE (Non-GAAP)
6.24
5.13
12.42
10.16
Noninterest income (GAAP)
2.91
2.96
5.47
6.21
Noninterest expense (GAAP)
5.16
5.08
10.97
10.29
Acquisition expense
0.19
0.19
0.94
0.20
Severance expense
—
0.01
0.01
0.01
FDIC special assessment
(0.01
)
(0.08
)
—
0.19
Operating pre-tax, pre-provision income - FTE earnings per common share - diluted (Non-GAAP)
$
4.17
$
3.13
$
7.87
$
6.48
Expand
Tangible book value non-GAAP reconciliations:
UMB Financial Corporation
(unaudited, dollars in thousands except share and per share data)
As of June 30,
2025
2024
Total common shareholders' equity (GAAP)
$
6,885,023
$
3,227,347
Less: Intangible assets
Goodwill
1,812,694
207,385
Other intangibles, net
531,918
67,141
Total intangibles, net
2,344,612
274,526
Total tangible common shareholders' equity (Non-GAAP)
$
4,540,411
$
2,952,821
Total common shares outstanding
75,927,002
48,745,090
Ratio of total common shareholders' equity (book value) per share
$
90.68
$
66.21
Ratio of total tangible common shareholders' equity (tangible book value) per share (Non-GAAP)
59.80
60.58
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