UMB Financial UMBF Q2 2026 earnings

(i) See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.

Net interest income

• Second quarter 2026 net interest income totaled $532.5 million, a decrease of $1.8 million, or 0.3%, from the linked quarter, driven primarily by declines in purchase accounting accretion benefits and interest income on lower federal funds and interest-bearing due from banks balances, alongside an increase in interest expense due to the mix shift in the funding composition within deposit categories. These changes were partially offset by continued organic growth in loans, increased loan fees, benefit from an additional day in the quarter, and favorable rate and mix shifts in earning assets.
• Average earning assets increased $173.8 million, or 0.3%, from the linked quarter, largely driven by an increase of $1.2 billion in average loans, partially offset by decreases of $506.0 million in average federal funds and resell agreements and $480.6 million in average interest-bearing due from banks.
• Average interest-bearing liabilities increased $293.6 million, or 0.6%, from the linked quarter, primarily driven by an increase of $401.7 million, or 0.9%, in interest-bearing deposits, partially offset by a decrease of $111.2 million, or 3.1%, in federal funds and repurchase agreements. Average total deposits were flat compared to the linked quarter.
• Net interest margin for the second quarter was 3.32%, a decrease of six basis points from the linked quarter, due to lower purchase accounting accretion income that impacted the yields on loans, and a lower benefit from free funds, partially offset by a favorable mix shift in earning assets.
• On a year-over-year basis, net interest income increased $65.5 million, or 14.0%, driven by favorable repricing of deposits in conjunction with lower short-term interest rates, and increases of $4.2 billion, or 11.6%, in average loans and $2.2 billion, or 12.6%, in average securities. These increases were partially offset by a decrease of $2.9 billion, or 44.3%, in average interest-bearing due from banks and $6.3 million in lower purchase accounting accretion income.
• Average deposits increased 3.5% compared to the second quarter of 2025. Average interest-bearing deposits increased 3.9%, and noninterest-bearing demand deposit balances increased 2.1% compared to the second quarter of 2025. Average demand deposit balances comprised 25.5% of total deposits in the second quarter of 2026, compared to 26.2% in the linked quarter and 25.9% in the second quarter of 2025.

Noninterest income

• Second quarter 2026 noninterest income increased $40.7 million, or 19.9%, on a linked-quarter basis, largely due to:
• An increase of $24.0 million in investment securities gains primarily driven by a $17.9 million gain on the sale of a non-marketable security in the second quarter of 2026, coupled with increases of $9.1 million in valuation of the company's non-marketable securities. These increases were partially offset by a $3.0 million gain on the sale of a non-marketable security in the first quarter of 2026.
• An increase of $11.2 million in company-owned life insurance income, recorded in other income. The increase in company-owned life insurance income was offset by a proportionate increase in deferred compensation as noted below.
• An increase of $4.3 million in brokerage income due to higher 12b-1 fees and money market income.
• Increases of $2.4 million in fund services income and $1.1 million in corporate trust income, both recorded in trust and securities processing.
• The increases noted above were partially offset by a decrease of $2.4 million in trading and investment banking due to decreases in municipal and agency trading activity.
• Compared to the prior year, noninterest income in the second quarter of 2026 increased $23.3 million, or 10.5%, primarily driven by:
• An increase of $15.0 million in trust and securities processing driven by increases of $9.1 million in fund services income, $3.9 million in corporate trust income, and $2.0 million in trust income.
• Increases of $8.8 million in company-owned life insurance income, $2.5 million in bank-owned life insurance income, and $1.0 million in derivative income, all recorded in other income. The increase in company-owned life insurance income was offset by a proportionate increase in deferred compensation as noted below.
• An increase of $4.9 million in brokerage income due to higher 12b-1 fees and money market income.
• The increases noted above were partially offset by a decrease of $10.6 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., which completed its initial public offering in June 2025, and pre-tax gains of $8.2 million on the sale of two non-marketable securities, all recognized in the second quarter of 2025. This compares to a $17.9 million gain on the sale of a non-marketable security and increases of $9.1 million in valuation of the company's non-marketable securities in the second quarter of 2026.

Noninterest expense

• GAAP noninterest expense for the second quarter of 2026 was $399.6 million, an increase of $18.8 million, or 4.9%, from the linked quarter and $6.5 million, or 1.6%, from the second quarter of 2025. Second quarter 2026 expenses included $1.7 million in total acquisition-related and other nonrecurring costs, compared to $4.4 million in the linked quarter and $13.5 million in the second quarter of 2025. Operating noninterest expense, a non-GAAP financial measure reconciled later in this release to noninterest expense, the nearest comparable GAAP measure, was $398.0 million for the second quarter of 2026, an increase of $22.6 million, or 6.0%, from the linked quarter and an increase of $17.9 million, or 4.7%, from the second quarter of 2025.
• The linked-quarter increase in GAAP noninterest expense was driven by:
• An increase of $7.5 million in salaries and employee benefits expense driven by an increase of $6.7 million in salary and bonus expense and a $0.8 million increase in employee benefits. The increase in salary and bonus expense was due to higher salary expense related to annual merit increases beginning in the second quarter and increased bonus expense related to company performance. The increase in employee benefits was driven by a $12.6 million increase in deferred compensation expense, partially offset by a $12.5 million seasonal decrease in payroll taxes, insurance, and 401(k) expense. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above.
• An increase of $5.3 million in legal and consulting expense due to the timing of multiple projects, including $1.7 million in non-recurring costs.
• Increases of $4.1 million in operational losses and $1.0 million in processing fees expense due to increased software subscription costs.
• The year-over-year increase in GAAP noninterest expense was driven by:
• An increase of $13.6 million in salaries and employee benefits expense, driven by increases of $12.5 million in employee benefits expense and $1.1 million in salaries and bonus expense. The increase in employee benefits expense is due to increases of $9.9 million in deferred compensation expense and $2.6 million in payroll taxes, insurance, and 401(k) expense. The increase in deferred compensation expense was offset by the increase in company-owned life insurance income noted above. The increase in salaries and bonus expense is due to higher employee salaries as compared to the second quarter of 2025.
• An increase of $2.6 million in marketing and business development expense, driven by the timing of multiple advertising campaigns and increased travel and entertainment expense.
• These increases were partially offset by the following decreases:
• A decrease of $4.1 million in legal and consulting expense, which included $1.7 million in non-recurring transaction costs as compared to $7.5 million of non-recurring transaction costs in the second quarter of 2025.
• A decrease of $2.5 million in equipment expense driven by a decline in software costs.
• A decrease of $1.8 million in amortization of intangibles due to reduced amortization of the core deposit intangible recognized from the HTLF acquisition.
• Second quarter 2026 noninterest expense included $1.7 million in total acquisition-related and other nonrecurring costs, compared to $4.4 million in the linked quarter and $13.5 million in the second quarter of 2025. During the second quarter of 2026, this expense was composed primarily of $1.7 million in legal and consulting expense. During the linked quarter, the $4.4 million in acquisition-related expense was composed primarily of $4.0 million in salaries and employee benefits. During the second quarter of 2025, acquisition-related expense was primarily composed 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.

Income taxes

• The company’s effective tax rate was 20.9% for the six months ended June 30, 2026, compared to 18.8% for the same period in 2025. The increase is mainly due to more favorable discrete tax items in 2025, including a benefit from remeasuring deferred tax assets after the HTLF acquisition increased the state marginal tax rate. Additionally, a smaller proportion of pre-tax income in 2026 was earned from tax-exempt municipal securities.

Balance sheet

• Average total assets for the second quarter of 2026 were $70.4 billion compared to $70.4 billion for the linked quarter and $66.9 billion for the same period in 2025.

(i) Commercial and industrial loans include all loans to Non-Depository Financial Institutions (NDFIs).

• Average loans for the second quarter of 2026 increased $1.2 billion, or 3.2%, on a linked-quarter basis and $4.2 billion, or 11.6%, compared to the second quarter of 2025. These increases reflect continued organic momentum across all geographies.

• Average total securities decreased 0.4% on a linked-quarter basis and increased 12.7% compared to the second quarter of 2025.

• Average deposits remained flat on a linked-quarter basis as seasonal declines in public funds and commercial demand deposit balances were offset by increases in other interest-bearing deposit balances within the commercial banking segment. Average deposits increased 3.5% compared to the second quarter of 2025.

Capital

(i) See reconciliation of Non-GAAP measures to their nearest comparable GAAP measures later in this release.

• 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 $5.0 million.
• At June 30, 2026, the regulatory capital ratios presented in the foregoing table exceeded all “well-capitalized” regulatory thresholds.

Asset Quality

• Provision for credit losses for the second quarter of 2026 increased $1.0 million from the linked quarter and $7.0 million from the second quarter of 2025. 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 $15.9 million, or 0.16% of average loans, compared to $18.9 million, or 0.19% of average loans in the linked quarter, and $15.5 million, or 0.17% of average loans for the second quarter of 2025. Nonperforming loans declined 15.7% to $127.5 million and comprised 31 basis points of total loans, compared to 38 basis points at March 31, 2026.

Conference Call

The company will host a conference call to discuss its second quarter 2026 earnings results on Wednesday, July 29, 2026, at 8:30 a.m. (CT).

Interested parties may access the call by dialing (toll-free) 888-596-4144 or (international) 646-968-2525 and requesting to join the UMB Financial call with conference ID 8227474#. The live webcast may also be accessed by visiting investorrelations.umb.com or by using the following link: UMB Financial 2Q 2026 Conference Call A replay of the conference call may be heard through August 12, 2026, by calling (toll-free) 800-770-2030 or (international) 609-800-9909. The replay access code required for playback is 8227474. 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, 2025, our subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, or other applicable documents that are filed or furnished with the U.S.

Securities and Exchange Commission (SEC). In addition to such factors that have been disclosed previously: macroeconomic and adverse developments and uncertainties related to the collateral effects of the collapse of, and challenges for, domestic and international banks, including the impacts to the U.S. and global economies; sustained levels of high inflation and the potential for an economic recession on the heels of aggressive quantitative tightening by the Federal Reserve; and impacts related to or resulting from instability in the Middle East and Russia’s military action in Ukraine, such as the broader impacts to financial markets and the global macroeconomic and geopolitical environments, may also cause actual results or other future events, circumstances, or aspirations to differ from our forward-looking statements. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except to the extent required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K, or other applicable document that is filed or furnished with the SEC.

About UMB:

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

• 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,

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, 2026.

Non-GAAP Financial Measures

(i) Calculated using the company’s marginal tax rate of 24.0%. Certain merger-related expenses are non-deductible.