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Wall Street expects a year-over-year increase in earnings on higher revenues when UMB Financial (UMBF - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 27, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis bank holding company is expected to post quarterly earnings of $3.22 per share in its upcoming report, which represents a year-over-year change of +19.3%.

Revenues are expected to be $749.94 million, up 9.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.33% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for UMB?For UMB, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.08%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that UMB will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that UMB would post earnings of $3.08 per share when it actually produced earnings of $3.57, delivering a surprise of +15.91%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

UMB doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Banks - Midwest industry, 1st Source (SRCE - Free Report) , is soon expected to post earnings of $1.83 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +7%. This quarter's revenue is expected to be $117.95 million, up 6.6% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for 1st Source has been revised 2.5% up to the current level. Nevertheless, the company now has an Earnings ESP of +0.55%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that 1st Source will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways UMB Financial's shares gained 14.7% in a year, supported by balance sheet and fee-income growth.UMB Financial's 1H26 NII rose 23.4%, while net interest margin expanded to 3.35%.Elevated costs and commercial loan concentration could pressure UMB Financial's near-term results. Shares of UMB Financial (UMBF - Free Report)  have risen 14.7% in the past year against the industry’s 1.4% decline. In the same time frame, the S&P 500 has gained 17.2%.

Also, the company’s shares have fared better than those of its peers, such as Associated Banc-Corp (ASB - Free Report) and The Bank of Hawaii Corporation (BOH - Free Report) . In the past year, Associated Banc-Corp and Bank of Hawaii shares have gained 13.3% and 9.3%, respectively.

UMBF One-Year Price Performance

Image Source: Zacks Investment Research

Does UMBF stock have more upside left despite recent price strength? Let us find out by looking at its fundamentals and growth prospects.

Key Factors Supporting UMB FinancialHealthy Balance Sheet Expansion: UMB Financial continues to benefit from strong balance sheet growth, supported by organic expansion and the January 2025 acquisition of Heartland Financial USA. Total loans and deposits increased at a five-year compound annual growth rate (CAGR) of 19.3% and 17.5%, respectively, during 2020-2025. The Heartland acquisition added $9.7 billion of loans and $14.3 billion of deposits, further strengthening the company’s scale and market presence. The growth momentum continued in the first half of 2026, with both loans and deposits increasing year over year. Management noted that loan and deposit pipelines remain broad-based across markets, supported by continued strength in commercial and industrial (C&I) lending and steady core deposit trends. Sustained balance sheet expansion should provide a solid foundation for future revenue and earnings growth.

Resilient Net Interest Income (NII): UMB Financial has demonstrated strong NII growth, with the metric increasing at a five-year CAGR of 20.6% through 2025, supported by balance sheet expansion and a favorable funding mix. The momentum continued in the first half of 2026, with NII rising 23.4% year over year. During the same period, net interest margin expanded 31 basis points to 3.35%, aided by a favorable earning-asset mix, deposit repricing and improved spreads. Despite changes in the interest-rate environment, UMB Financial's favorable funding mix, strong C&I demand and disciplined deposit pricing should provide support to NII. These factors, combined with continued loan growth, should help sustain net interest revenue in the upcoming periods.

Diversified Fee-Based Revenues: UMB Financial continues to expand its fee-generating businesses, reducing reliance on spread income. Noninterest income increased at a five-year CAGR of 7.1% through 2025, driven by growth in fund services and private wealth businesses. The Heartland acquisition further expanded the company's geographic reach and increased private wealth management Assets Under Management/Administration (AUM/AUA) by 32%, strengthening its fee-generating franchise and cross-selling opportunities. The positive trend continued in the first half of 2026, supported by higher revenues from fund services, corporate trust, deposit service charges and investment banking. In June 2026, UMB Fund Services integrated iCapital's distributed ledger technology into its alternative investment servicing infrastructure, which is expected to improve the efficiency and scalability of fund servicing workflows. Active pipelines across fund services, corporate trust and private wealth should support continued growth in fee-based revenues.

Strong Liquidity and Capital Returns: UMB Financial maintains a solid liquidity position, with cash and interest-bearing deposits of $5.7 billion compared with total short- and long-term debt of $3.6 billion as of June 30, 2026. This provides the company with flexibility to meet its funding requirements and support ongoing business operations. UMBF also continues to return capital to its shareholders. The company has increased its dividend annually since 2002, with the latest increase of 16.3% to 50 cents per share announced in July 2026. In April 2026, the board approved a new share repurchase program for up to 2 million shares, of which approximately 1.96 million remained available as of June 30, 2026. Management continues to prioritize organic loan growth, followed by dividends and opportunistic share repurchases, supporting continued shareholder distributions.

Key Factors Weighing on UMB FinancialElevated Operating Costs: UMB Financial continues to face pressure from a rising cost base. Noninterest expenses increased at a five-year CAGR of 14.6% during 2020-2025, driven by business expansion and the integration of Heartland Financial. The upward trend continued in the first half of 2026, with expenses affected by higher salaries and benefits, legal and consulting costs, operational losses and processing fees. Management expects operating noninterest expenses to remain elevated at around $390 million in the third quarter. Continued investments and integration-related costs could therefore constrain operating leverage and weigh on near-term bottom-line growth.

Total Expense Trend

Image Source: Zacks Investment Research

Commercial Loan Concentration: UMB Financial's loan portfolio remains significantly concentrated in commercial lending. C&I and commercial real estate (CRE) loans accounted for roughly 84% of average loans in the second quarter of 2026. While commercial lending continues to support loan growth, this concentration increases the company's sensitivity to changes in business conditions and commercial real estate markets. Net charge-offs were 0.16% of average loans in the second quarter, while nonaccrual and restructured loans represented 0.31% of total loans. Any deterioration in commercial borrowers' financial conditions or property markets could therefore lead to higher credit costs and pressure financial performance.

UMBF’s Earnings & Valuation AnalysisThe Zacks Consensus Estimate points to sustained earnings growth over the next two years. The consensus estimates for 2026 earnings of $13.35 per share and 2027 earnings of $13.89 reflect continued earnings momentum. This growth, combined with recent share-price strength, supports UMBF’s near-term outlook.

Earnings Estimates

Image Source: Zacks Investment Research

In terms of its valuation, UMB Financial stock is currently trading at a trailing 12-month price-to-earnings (P/E) ratio of 10.64X, compared with the industry average of 10.58X. This indicates that UMBF is currently trading at a premium to its industry.

Price-to-Earnings TTM

Image Source: Zacks Investment Research

UMBF trades at a discount compared with Bank of Hawaii, while Associated Banc-Corp trades at a premium. At present, Bank of Hawaii and Associated Banc-Corp trade at a trailing 12-month P/E of 13.37X and 9.98X, respectively.

How to Approach UMBF Stock Now?UMB Financial appears well positioned for continued growth, supported by strong balance sheet expansion, resilient net interest income, improving fee-based revenues and solid capital levels. The successful integration of Heartland Financial has strengthened the company’s scale and market presence, while healthy loan demand and an expanding net interest margin should continue to support earnings.

Although elevated operating expenses and commercial loan concentration remain risks, improving revenue trends and strong fundamentals could support further gains in the stock.

With its solid earnings outlook, diversified revenue streams and favorable growth prospects, UMB Financial remains a solid investment option for investors seeking exposure to a growing regional banking franchise. Continued execution on growth initiatives, expense management and credit quality will be key to sustaining its positive momentum.

Currently, UMBF stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Bank of America Corp DE bought a new position in shares of UMB Financial Corporation (NASDAQ:UMBF – Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund bought 904,683 shares of the bank’s stock, valued at approximately $129,153,000. Bank of America Corp DE owned 1.19% of UMB Financial at the end of the most recent quarter.

Other large investors have also recently bought and sold shares of the company. BlackRock Inc. bought a new stake in UMB Financial in the 2nd quarter valued at $1,458,386,000. Dimensional Fund Advisors LP increased its holdings in shares of UMB Financial by 1.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,909,932 shares of the bank’s stock worth $328,200,000 after purchasing an additional 55,005 shares during the period. Geode Capital Management LLC increased its holdings in shares of UMB Financial by 1.8% during the 4th quarter. Geode Capital Management LLC now owns 1,907,978 shares of the bank’s stock worth $219,529,000 after purchasing an additional 33,078 shares during the period. First Trust Advisors LP raised its position in shares of UMB Financial by 12.0% during the first quarter. First Trust Advisors LP now owns 899,400 shares of the bank’s stock valued at $101,443,000 after buying an additional 96,149 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of UMB Financial during the fourth quarter valued at about $85,885,000. 87.78% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at UMB Financial In other UMB Financial news, insider Phillip Mason sold 800 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $147.00, for a total transaction of $117,600.00. Following the completion of the transaction, the insider directly owned 8,894 shares in the company, valued at $1,307,418. This represents a 8.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Susan Murphy sold 1,377 shares of UMB Financial stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $145.55, for a total value of $200,422.35. Following the transaction, the director directly owned 10,635 shares of the company’s stock, valued at approximately $1,547,924.25. The trade was a 11.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 25,544 shares of company stock valued at $3,775,862. 5.33% of the stock is owned by insiders.

Analyst Ratings Changes A number of equities research analysts recently weighed in on the company. JPMorgan Chase & Co. began coverage on UMB Financial in a research report on Thursday, August 20th. They set an “overweight” rating and a $180.00 target price on the stock. UBS Group began coverage on UMB Financial in a report on Monday. They issued a “neutral” rating and a $155.00 price target for the company. Weiss Ratings reiterated a “buy (b)” rating on shares of UMB Financial in a research report on Friday, July 24th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $170.00 price objective (up from $168.00) on shares of UMB Financial in a research report on Thursday, July 30th. Finally, Morgan Stanley lifted their price objective on UMB Financial from $159.00 to $190.00 and gave the stock an “overweight” rating in a report on Tuesday, September 8th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $167.93. Get Our Latest Stock Analysis on UMB Financial

UMB Financial Stock Performance NASDAQ:UMBF opened at $134.76 on Friday. The firm has a market capitalization of $10.24 billion, a PE ratio of 11.22, a price-to-earnings-growth ratio of 0.65 and a beta of 0.77. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 0.06. UMB Financial Corporation has a 12-month low of $68.92 and a 12-month high of $144.36. The firm has a 50-day moving average price of $144.08 and a 200 day moving average price of $132.24.

UMB Financial (NASDAQ:UMBF – Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The bank reported $3.57 earnings per share for the quarter, beating the consensus estimate of $3.12 by $0.45. UMB Financial had a return on equity of 13.41% and a net margin of 21.64%.The company had revenue of $778.00 million for the quarter, compared to analyst estimates of $727.63 million. During the same period in the prior year, the company posted $2.96 EPS. Research analysts anticipate that UMB Financial Corporation will post 13.54 earnings per share for the current fiscal year.

UMB Financial Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be paid a $0.50 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $2.00 annualized dividend and a yield of 1.5%. This is a positive change from UMB Financial’s previous quarterly dividend of $0.43. UMB Financial’s payout ratio is presently 16.65%.

UMB Financial Company Profile (Free Report)

UMB Financial Corporation is a financial services holding company headquartered in Kansas City, Missouri. Its principal subsidiary, UMB Bank, provides banking and financial services to individuals, businesses, institutions and government entities.

The company offers commercial and personal banking products, including deposit accounts, lending, treasury management, wealth management and investment services. UMB also provides institutional banking, fund administration, securities custody, corporate trust and payment solutions through its specialized financial services businesses.

Founded in 1913, UMB serves customers through banking locations and business operations across portions of the Midwest and Western United States, as well as through nationwide institutional and payment-services platforms.

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It has been about a month since the last earnings report for UMB Financial (UMBF - Free Report) . Shares have lost about 3.3% in that time frame, underperforming the S&P 500.

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

UMB Financial Q2 Earnings Beat on Y/Y Rise in NII, Expenses IncreaseUMB Financial reported second-quarter 2026 adjusted operating earnings per share of $3.57, beating the Zacks Consensus Estimate of $3.08. The bottom line also increased from $2.96 in the year-ago quarter.

The company delivered a strong quarterly performance, supported by solid growth in net interest income, higher non-interest income and continued loan growth. Improved efficiency and strong credit quality further supported the results.

Results include certain non-recurring items. After considering those, net income (GAAP basis) available to common shareholders was $271.8 million in the second quarter, up 26.2% from the year-ago quarter.

Revenues & Expenses Rise

Quarterly revenues were $786.9 million, rising 14.2% year over year. The metric beat the Zacks Consensus Estimate by 8.4%.

NII was $532.5 million, up 14% from the prior-year quarter.

On a fully-taxable-equivalent basis, the net interest margin was 3.32%, up 22 basis points year over year. The increase was primarily driven by favorable deposit repricing following lower short-term interest rates and growth in average loans and securities.

Non-interest income was $245.5 million, up 10.5% year over year. The increase was primarily driven by higher trust and securities processing income, other income, and brokerage income. These increases were partially offset by lower investment securities gains.

Non-interest expenses were $399.6 million, up 1.6% year over year. Second-quarter 2026 expenses included $1.7 million in total acquisition-related and other non-recurring costs. Operating non-interest expenses (adjusted basis) were $398 million, up 4.7% year over year.

The efficiency ratio declined to 48.4% from the prior-year quarter’s 53.4%. A decline in the efficiency ratio indicates an increase in profitability.

Loans & Deposit Balances Rise

Average loans for the second quarter were $40.6 billion, up 3.2% sequentially and 11.6% from the prior-year quarter. End-of-period loans stood at $41.1 billion as of June 30, 2026.

Average deposits remained flat sequentially and increased 3.5% year over year to $57.6 billion. Average interest-bearing deposits increased 3.9%, while non-interest-bearing demand deposit balances rose 2.1% from the prior-year quarter.

Credit Quality Deteriorates

Net charge-offs totaled $15.9 million, or 0.16% of average loans, compared with $15.5 million, or 0.17%, in the year-ago quarter.

Total non-accrual and restructured loans were $127.5 million compared with $97 million in the year-ago quarter.

The provision for credit losses was $28 million in the second quarter of 2026, up from $21 million in the prior-year quarter.

Capital Ratios Improve

As of June 30, 2026, the Tier 1 risk-based capital ratio was 12.02% compared with 11.24% as of June 30, 2025. The Tier 1 leverage ratio was 9.11% compared with 8.34% in the year-ago quarter. The total risk-based capital ratio was 13.80%, up from 13.46% a year ago.

In the second quarter of 2026, the company repurchased 38,158 common shares at a weighted average price of $132.10 for a total repurchase of $5 million.

Profitability Ratios Improve

Return on average assets at the second-quarter end was 1.55% compared with the year-ago quarter’s 1.29%.

Return on average common equity was 14.16% compared with 12.72% in the year-ago quarter.

OutlookThird Quarter 2026

Core net interest margin is expected to remain relatively flat from the second quarter adjusted level of 3.09%.

Operating noninterest expense is expected to be approximately $390 million.

Management expects deposit pipelines to remain healthy, although the deposit environment is expected to face seasonal pressure in the third quarter.

Loan growth pipelines are expected to remain strong, led by C&I lending across the company’s footprint.

2026

The effective tax rate is expected to remain between 20% and 22%.

Management expects positive operating leverage for 2026, even as contractual purchase accounting accretion is expected to be approximately $46 million for the remainder of the year.

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.

VGM ScoresCurrently, UMB has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, UMB has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerUMB belongs to the Zacks Banks - Midwest industry. Another stock from the same industry, Huntington Bancshares (HBAN - Free Report) , has gained 1.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Huntington Bancshares reported revenues of $2.86 billion in the last reported quarter, representing a year-over-year change of +42%. EPS of $0.39 for the same period compares with $0.38 a year ago.

Huntington Bancshares is expected to post earnings of $0.40 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate has changed -1.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Huntington Bancshares. Also, the stock has a VGM Score of D.

S&P Downgrades 5 Banks: What Does It Mean For The Market?UMB Financial NASDAQ: UMBF reported second-quarter 2026 net income of $271.8 million, or $3.56 per diluted share, as loan growth, fee income expansion and investment gains supported results. The company posted an operating return on tangible common equity of 20.3% and an operating efficiency ratio of 48.1%.

Chairman and CEO Mariner Kemper said average loan balances increased at a 12.6% annualized rate from the first quarter, supported by a record $2.6 billion in gross loan production. Commercial and industrial loan balances grew at a nearly 22% annualized pace, with activity led by markets including St. Louis, Utah, Texas and Arizona.

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Kemper said the company’s loan momentum reflected market-share gains more than changes in the broader economy. “It’s business as usual,” he said, adding that growth was occurring across regions and verticals and that the next 90 days appeared similar to the prior 90 days.

Credit Quality and Margin Performance Credit metrics remained strong during the quarter. Net charge-offs were 16 basis points of average loans, while nonperforming loans declined to 31 basis points of loans from 38 basis points in the first quarter.

Reported net interest margin was 3.32%, including a 23-basis-point benefit from purchase-accounting adjustments. Excluding that impact, core net interest margin was 3.09%, up four basis points sequentially. Chief Financial Officer Ram Shankar attributed the improvement primarily to a favorable shift in earning-asset mix toward loans and changes in liquidity levels.

The company recorded $35.9 million of net interest income from purchase-accounting adjustments, including $10.9 million of accelerated accretion tied to early payoffs of acquired loans. UMB expects approximately $46 million of contractual accretion during the remainder of 2026 and $77 million in 2027.

For the third quarter, Shankar said UMB expects core margin to remain relatively flat compared with the second-quarter adjusted margin. The outlook will depend on demand deposit account growth, excess liquidity, SOFR movements and lending and funding mix shifts.

Deposit Trends and Balance-Sheet Flexibility Average deposits were flat from the first quarter. Growth in commercial and asset-servicing deposits was offset by seasonal declines in public funds and lower investor-solutions balances. The average cost of interest-bearing deposits was also roughly unchanged.

Kemper said the third quarter is typically a seasonal low point for deposits, particularly because of public-fund flows, but management expects stronger activity in the second half of the year. He emphasized that the company views deposits over longer periods rather than focusing on quarterly changes because institutional client activity can create episodic swings.

UMB’s off-balance-sheet deposits increased 3.6% sequentially to $23.7 billion. Kemper said the company could bring a portion of those client deposits onto the balance sheet at market rates if needed, without affecting fee income. The company also had nearly $1.5 billion of excess cash and $2.3 billion of securities scheduled to mature or roll off over the next 12 months.

Management did not provide a target for its loan-to-deposit ratio, instead pointing to the company’s historical ability to produce steady deposit growth. Kemper said core deposits remain central to the company’s balance-sheet value and have remained a priority throughout his tenure as CEO.

Fee Income Gains and Expense Outlook Noninterest income rose $40.7 million, or nearly 20%, from the first quarter to $245.5 million. The increase included $27.1 million in net gains from private investment holdings, primarily related to Beacon Communications and SpaceX Technologies, as well as higher 12b-1 and money-market income and continued strength in fund services and corporate trust.

Total fee income from institutional banking businesses increased 6% sequentially and 19.6% from a year earlier. Asset servicing and corporate trust each posted fee-income growth of more than 20% year over year. Excluding investment gains and mark-to-market effects related to company-owned life insurance, core fee income was about $210 million.

Kemper said UMB expects trust and securities-processing revenue to maintain its general growth rate, potentially with upside, citing strong pipelines and market-share gains. He said fund services has shifted over the past decade toward larger and more complex client relationships, while the company has also benefited from platforms expanding access to alternative investments.

Operating noninterest expense totaled $398 million, up 6% from the first quarter. The increase included merit-related salary and benefit expenses, higher deferred compensation expense and $4.1 million of operational losses. Shankar said UMB expects third-quarter operating expenses of approximately $390 million, in line with consensus expectations.

Capital Actions and Outlook UMB’s common equity Tier 1 ratio increased 29 basis points during the quarter to 11.45% as of June 30. The company raised its quarterly common dividend 16.3% to $0.50 per share and repurchased approximately 38,000 shares for $5 million.

Management said its first capital priority remains supporting organic loan growth. Shankar said a preliminary assessment of potential new capital rules suggests a possible net benefit of 50 to 60 basis points after including accumulated other comprehensive income, depending on changes to risk-weighted assets.

The company expects to maintain positive operating leverage for full-year 2026, despite the effect of lower expected contractual accretion income. Its effective tax rate was 20.8% in the second quarter, and management expects a 2026 tax rate between 20% and 22%.

About UMB Financial (NASDAQ:UMBF)UMB Financial Corporation NASDAQ: UMBF is a diversified financial services holding company headquartered in Kansas City, Missouri. Through its principal banking subsidiary, UMB Bank, N.A., the company provides a full suite of commercial and consumer banking services. Key offerings include deposit accounts, commercial and consumer lending, treasury and cash management, as well as online and mobile banking solutions designed to serve businesses, individuals and municipalities.

In addition to its core banking operations, UMB Financial delivers wealth management and trust services, investment advisory, asset management and retirement planning to high-net-worth individuals, families and institutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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