Core Viewpoint - Blackbird Critical Metals Corp. has received conditional approval from the Canadian Securities Exchange for its acquisition of Lir Life Science Inc. and the listing of the resulting issuer's common shares upon completion of the acquisition [1][11]. Acquisition Details - The company will acquire 100% of Lir Life Sciences' common shares in exchange for issuing 22,312,678 common shares of Blackbird on a post-consolidation basis to Lir shareholders [3]. - Following the acquisition, the business will continue under the name "Lir Life Sciences Corp." [3]. Share Consolidation - Prior to the acquisition closing, Blackbird will consolidate its shares on a 1.5:1 basis, reducing the number of outstanding shares from approximately 7,762,912 to about 5,175,275 [4][5]. - Registered shareholders will receive instructions for exchanging their existing certificates for post-consolidation shares [6]. Financial Transactions - The acquisition includes a transaction fee of 2% of the acquisition value, payable in 379,000 Resulting Issuer Shares [8]. - Lir Life Sciences has completed a private placement of 3,050,270 subscription receipts at $0.35 each, raising approximately $1.07 million, which will convert into Lir Shares prior to closing [9]. - Lir Life Sciences has settled $109,343 in debt by issuing 312,408 Lir Shares at a deemed price of $0.35, which will also convert into Resulting Issuer Shares upon closing [10]. Trading and Regulatory Approval - Trading in Blackbird Shares will remain halted until all conditions for listing are satisfied, including the completion of the acquisition and final approval from the CSE [11]. - The new CUSIP and ISIN numbers for the post-consolidation shares will be 50206C100 and CA50206C1005, respectively [7].

Core Insights - UMB Financial Corp. (UMBF) reported third-quarter 2025 operating earnings per share of $2.70, exceeding the Zacks Consensus Estimate of $2.48 and up from $2.25 in the same quarter last year [1][10] Financial Performance - The company achieved net income (GAAP basis) of $180.4 million, a significant increase of 64.5% year over year [3] - Quarterly revenues (FTE) reached $686.7 million, a surge of 66.4% year over year, surpassing the Zacks Consensus Estimate by 4.2% [4] - Net interest income (NII) on an FTE basis was $483.4 million, a jump of 90.3% from the prior-year quarter, with a net interest margin of 3.04%, up 58 basis points year over year [4] - Non-interest income was $203.3 million, reflecting a year-over-year increase of 28.1, primarily driven by trust and securities processing, and service charges on deposit accounts [5] - Non-interest expenses totaled $419.3 million, up 66.1% year over year, including $35.6 million in acquisition-related and non-recurring costs [5] Efficiency and Capital Ratios - The efficiency ratio improved to 58.1%, down from 61.7% in the prior-year quarter, indicating increased profitability [6] - As of September 30, 2025, the Tier 1 risk-based capital ratio was 11.3%, slightly up from 11.2% a year ago, while the Tier 1 leverage ratio decreased to 8.3% from 8.6% [11] Loan and Deposit Growth - Average loans and leases as of September 30, 2025, were $37.1 billion, up 2% sequentially, and average deposits increased 2% year over year to $56.7 billion [7] Credit Quality Concerns - The ratio of net charge-offs to average loans was 0.20%, up from 0.14% in the prior-year quarter, with total non-accrual and restructured loans rising to $131.9 million from $19.3 million [8] - The provision for credit losses was $22.5 million in the third quarter of 2025, compared to $18 million in the prior-year quarter [8] Dividend Announcement - The company announced a quarterly dividend of 43 cents per share, marking a 7.5% increase from the prior quarter and the 23rd increase in the past 20 years [13] Overall Assessment - UMB Financial's robust third-quarter results were driven by strong NII and non-interest income growth, alongside improving margins, with the Heartland Financial acquisition contributing to loan and deposit growth [14]

Financial Data and Key Metrics Changes - Reported net income available to common shareholders was $180.4 million, including $35.6 million of acquisition expenses, compared to $13.5 million in the second quarter. Excluding these and other nonrecurring items, net operating income for the third quarter was $206.5 million or $2.70 per share [6][11] - Net interest income totaled $475 million, an increase of $8 million or 1.7% from the second quarter, driven by organic growth in average loans and earning assets [6][12] - Fee income increased by 12.4% on a linked quarter basis, excluding market valuation changes on equity positions [6][12] Business Line Data and Key Metrics Changes - Investment banking saw nearly a 14% increase in activity from the second quarter, driven by agency and mortgage-backed trading [6][14] - Quarterly top line loan production surpassed $2 billion for the first time, with strong organic growth momentum [7][8] - CNI (Commercial and Industrial) loans were the strongest contributor for the quarter, with more than 14% annualized growth over the second quarter average balances [7][9] Market Data and Key Metrics Changes - Loan growth outpaced peer banks, with UMB reporting an 8% annualized increase in average loan balances compared to a median of 5.5% among peer banks [8][10] - Total nonperforming loans were $132 million or 35 basis points of loans, with a slight increase attributed to two legacy HTLF loans [10][9] Company Strategy and Development Direction - The company successfully completed the acquisition of Heartland Financial, achieving full systems and brand conversion of all HTLF locations [5][6] - UMB aims to augment loan growth with acquired deposits through M&A, focusing on high-quality partnerships rather than immediate acquisitions [48][49] - The company is optimistic about the opportunities in various markets, including California and Wisconsin, and plans to leverage its strong credit culture to enhance loan production [44][46] Management's Comments on Operating Environment and Future Outlook - Management expects charge-off levels to remain near or below historical averages for the remainder of the year, despite a slight increase in nonperforming loans [10][28] - The effective tax rate for the third quarter was 20.4%, with expectations for the full year to be between 19% and 22% [18][12] - The company anticipates stable core margin in the fourth quarter, with expectations for continued growth in fee income and loan production [16][100] Other Important Information - The Board of Directors declared a quarterly dividend of $0.43 per share, representing a 7.5% increase from the prior quarter [11][12] - The company reported a common equity Tier 1 ratio of 10.70%, a 31 basis point increase from June 30, moving closer to pre-acquisition goals [10][11] Q&A Session Summary Question: Can you dissect the production trends and their sustainability? - Management indicated that loan growth is driven by both UMB and Heartland, with a focus on local penetration and execution opportunities [22][23] Question: Any updates on credit quality? - Management expressed confidence in handling new Heartland credits, with reserves already in place for identified issues [25][26] Question: What is the outlook for expenses in the first quarter of 2026? - Management expects to realize cost savings from the Heartland acquisition by the end of the first quarter, with some inflationary pressures anticipated [32][33] Question: How is the integration of HTLF lenders progressing? - Management noted that the integration has been smooth, with former HTLF officers benefiting from enhanced support and quicker turnaround times [36][38] Question: What opportunities exist for new loan production? - Management highlighted significant opportunities across various regions, particularly in California and Wisconsin, with low penetration rates [44][46] Question: How does the company view M&A opportunities? - Management stated that while they are open to M&A, they prioritize maintaining profitability and focus on high-quality partnerships [49][95] Question: What is the outlook for the institutional banking division? - Management reported strong growth in trust and securities processing fees, driven by market share gains and partnerships in the private investment space [68][70]

Financial Data and Key Metrics Changes - Reported net income available to common shareholders was $180.4 million, including $35.6 million of acquisition expenses, compared to $13.5 million in the second quarter [5] - Excluding acquisition expenses, third quarter net operating income was $206.5 million or $2.70 per share [5] - Net interest income totaled $475 million, an increase of $8 million or 1.7% from the second quarter, driven by organic growth in average loans and earning assets [5][6] - Fee income increased by 12.4% on a linked quarter basis, excluding market valuation changes on equity positions [5] Business Line Data and Key Metrics Changes - Investment banking saw nearly a 14% increase in activity from the second quarter [6] - Quarterly top line loan production surpassed $2 billion for the first time, with strong organic growth momentum [6] - CNI (Commercial and Industrial) was the strongest contributor for the quarter, with more than 14% annualized growth over the second quarter average balances [6] Market Data and Key Metrics Changes - Loan growth outpaced peer banks, with UMB reporting an 8% annualized increase in average loan balances compared to a 5.5% median increase reported by peers [7] - Total nonperforming loans were $132 million or 35 basis points of loans, with a slight increase driven by two legacy HTLF loans [9] Company Strategy and Development Direction - The company successfully completed the acquisition of Heartland Financial USA, Inc., with a full systems and brand conversion of all HTLF locations [4] - The company aims to augment loan growth with acquired deposits through M&A, focusing on high-quality partnerships [48][94] - The company is seeing early signs of success in new markets acquired through Heartland, with significant opportunities for loan production [45] Management's Comments on Operating Environment and Future Outlook - Management expects charge-off levels to remain near or below historical averages for the remainder of the year [9] - The company anticipates continued strong loan activity and pipeline in both legacy and HTLF markets [7] - Management expressed optimism about the economy and borrower performance, indicating a stable outlook for credit quality [25] Other Important Information - The Board of Directors declared a quarterly dividend of $0.43 per share, representing a 7.5% increase from the prior quarter [10] - The effective tax rate for the third quarter was 20.4%, with expectations for the full year to be between 19% and 22% [17] Q&A Session Summary Question: Can you dissect the production trends and their sustainability? - Management indicated that loan growth is driven by both Heartland and UMB, with a focus on local penetration and execution opportunities [21][22] Question: Any updates on credit quality? - Management remains pleased with credit handling, noting that reserves have been established for identified issues, and they expect charge-offs to align with previous guidance [24][25] Question: What is the outlook for expenses in Q1 2026? - Management expects cost savings from the Heartland acquisition to materialize by the end of Q1 2026, with some inflationary pressures anticipated [31][32] Question: How are the lenders from HTLF being integrated? - Management stated that the integration has been smooth, with enhanced support and quicker turnaround times for clients [35][36] Question: What opportunities exist for new loan production? - Management highlighted significant opportunities across various regions, particularly in California and Wisconsin, with low penetration rates [45] Question: How does the company view M&A opportunities? - Management emphasized a disciplined approach to M&A, focusing on high-quality partners and the strategic need for low-cost deposits [48][94] Question: What is the outlook for the institutional banking division? - Management noted strong growth in trust and securities processing fees, driven by market share gains and partnerships in the private investment space [67][69]

Financial Data and Key Metrics Changes - Reported net income available to common shareholders was $180.4 million, including $35.6 million of acquisition expenses, compared to $13.5 million in the second quarter. Excluding these expenses, net operating income was $206.5 million or $2.70 per share [4] - Net interest income totaled $475 million, an increase of $8 million or 1.7% from the second quarter, driven by organic growth in average loans and earning assets [4] - Fee income increased by 12.4% on a linked quarter basis, excluding market valuation changes on equity positions [4] Business Line Data and Key Metrics Changes - Investment banking saw nearly a 14% increase in activity from the second quarter, driven by agency and mortgage-backed trading [4] - Quarterly loan production surpassed $2 billion for the first time, with strong organic growth momentum [5] - CNI (Commercial and Industrial) loans were the strongest contributor, with more than 14% annualized growth over the second quarter average balances [5] Market Data and Key Metrics Changes - Loan growth outpaced peer banks, with UMB reporting an 8% annualized increase in average loan balances compared to the 5.5% median increase reported by peers [6] - Total nonperforming loans were $132 million or 35 basis points of loans, with a slight increase attributed to two legacy HTLF loans [9] Company Strategy and Development Direction - The company successfully completed the full systems and brand conversion of Heartland Financial USA, Inc., which is expected to enhance growth opportunities [3] - UMB aims to augment loan growth with acquired deposits through M&A, focusing on high-quality partnerships to support its growth strategy [67][68] - The company is optimistic about the integration of Heartland's lenders, enhancing customer focus and operational efficiency [53][60] Management's Comments on Operating Environment and Future Outlook - Management expects charge-off levels to remain near or below historical averages for the remainder of the year, despite a slight increase in nonperforming loans [9] - The company anticipates continued strong loan activity and pipeline in both legacy and HTLF markets, with a strong pipeline looking ahead into the fourth quarter [6] - Management expressed confidence in the economic outlook, noting that borrowers are performing well [40] Other Important Information - The Board of Directors declared a quarterly dividend of $0.43 per share, representing a 7.5% increase from the prior quarter [10] - The effective tax rate for the third quarter was 20.4%, with expectations for the full year to be between 19% and 22% [17] Q&A Session Summary Question: Can you dissect the production trends and their sustainability? - Management noted that loan growth is driven by local penetration and the capacity of the officer corps, with early signs of success from the Heartland acquisition [21][22] Question: Any updates on credit quality? - Management expressed satisfaction with credit quality, stating that reserves have been established for identified loans, and they expect charge-offs to align with previous guidance [25][32] Question: What is the outlook for expenses in Q1 2026? - Management indicated that cost savings from the Heartland acquisition are expected to materialize by the end of Q1 2026, with some inflationary pressures anticipated [46][50] Question: How is the integration of Heartland's lenders progressing? - Management highlighted that the integration has been smooth, with enhanced support and quicker turnaround times for clients [53][60] Question: What opportunities exist for new loan production across Heartland's regions? - Management identified significant opportunities in various markets, particularly California and Wisconsin, emphasizing low penetration rates [64][66] Question: How does the company view M&A opportunities? - Management reiterated that while they do not need to pursue M&A, they are open to strategic acquisitions that can enhance their deposit base [67][68] Question: What is the outlook for the trust and securities processing division? - Management noted strong growth driven by asset servicing and corporate trust, with expectations for continued momentum [88][91]

Financial Highlights - The company's market capitalization is $90 billion[5] - Total assets reached $719 billion[5] - Gross loans amounted to $377 billion[5] - Total deposits reached $601 billion[5] - Institutional Assets Under Administration (AUA) totaled $6415 billion[5] - Fee income accounted for 300% of revenue[5] Q3 2025 Performance - Commercial & Personal Banking Services revenue was $5020 million, with average deposits of $393 billion[8] - Institutional Banking Services revenue was $1764 million, with average deposits of $175 billion[10] - Net interest income, as reported, reached $4750 million[50] - Noninterest income, excluding securities gains, was $2074 million[50]

Core Insights - UMB Financial (UMBF) reported a revenue of $686.65 million for Q3 2025, marking a year-over-year increase of 66.4% and exceeding the Zacks Consensus Estimate of $659.26 million by 4.16% [1] - The company's EPS for the quarter was $2.70, up from $2.25 a year ago, and also surpassed the consensus EPS estimate of $2.48 by 8.87% [1] Financial Performance Metrics - The Efficiency Ratio (GAAP) was reported at 58.1%, slightly above the average estimate of 57.6% from five analysts [4] - The Net Interest Margin (FTE) was 3%, compared to the estimated 3.1% by five analysts [4] - Net loan charge-offs as a percentage of total average loans were 0.2%, matching the average estimate from four analysts [4] - The Tier 1 risk-based capital ratio stood at 11.3%, slightly above the average estimate of 11.2% from three analysts [4] - Total earning assets averaged $63.11 billion, exceeding the average estimate of $62.05 billion from three analysts [4] - The Tier 1 Leverage Ratio was reported at 8.3%, below the average estimate of 8.6% from two analysts [4] - The Total Risk-based Capital Ratio was 13.1%, compared to the estimated 13.6% from two analysts [4] - Total noninterest income reached $203.3 million, surpassing the average estimate of $185.65 million from five analysts [4] - Net interest income (FTE) was $483.36 million, exceeding the average estimate of $476.09 million from four analysts [4] - Net Interest Income was reported at $475.04 million, above the average estimate of $468.45 million from three analysts [4] - Service charges on deposit accounts were $29.15 million, slightly below the average estimate of $29.22 million from three analysts [4] - Bankcard fees totaled $29.56 million, exceeding the average estimate of $29.16 million from three analysts [4] Stock Performance - UMB shares have returned -5.1% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - Net income available to common shareholders for Q3 2025 was $180.4 million, or $2.36 per diluted share, a 64.5% increase compared to Q3 2024[3]. - Net operating income available to common shareholders for Q3 2025 was $206.5 million, or $2.70 per diluted share, an 87.2% increase compared to Q3 2024[4]. - Net income for the three months ended September 30, 2025, was $188.32 million, up from $109.64 million, representing a 71.6% increase[43]. - The company reported a net income per common share of $2.38 for the third quarter of 2025, compared to $2.25 in 2024, a 5.8% increase[43]. - Comprehensive income for the nine months ended September 30, 2025, reached $735.251 million, compared to $482.325 million for the same period in 2024, reflecting a 52.4% increase[44]. Asset and Loan Growth - Average loans increased 8.0% on a linked-quarter annualized basis to $37.1 billion, and increased $12.8 billion, or 52.3%, compared to Q3 2024[4]. - Total assets at September 30, 2025, were $71.9 billion, up 51.3% from $47.5 billion as of September 30, 2024[4]. - Net loans reached $37.30 billion, a significant increase from $24.74 billion in the previous year, marking a 50.7% rise[42]. - Average total assets for Q3 2025 were $68.5 billion, compared to $66.9 billion for the linked quarter and $43.3 billion for the same period in 2024[19]. Income and Revenue - Total interest income for the three months ended September 30, 2025, was $878.90 million, compared to $557.69 million in 2024, reflecting a 57.6% increase[43]. - Year-over-year, net interest income rose by $227.7 million, or 92.0%, due to a $22.1 billion increase in average earning assets, primarily from the HTLF acquisition[14]. - Noninterest income increased 28.1% to $203.3 million compared to Q3 2024[4]. - Noninterest income for Q3 2025 increased by $44.6 million, or 28.1%, compared to the prior year, driven by increases in bank-owned life insurance income and trust and securities processing[16]. Efficiency and Ratios - The efficiency ratio improved to 58.1% compared to 61.7% in Q3 2024[4]. - Return on average assets for Q3 2025 was 1.04%, and return on average common equity was 10.14%[4]. - Operating return on average assets (Non-GAAP) was 1.20% for the three months ended September 30, 2025, compared to 1.01% for the same period in 2024, showing improved efficiency[49]. - The net interest margin for Q3 2025 was 3.04%, a decrease of six basis points from the linked quarter, attributed to higher yields on interest-bearing deposits and lower yields on loans[14]. Deposits and Capital - Average deposits increased 8.0% on a linked-quarter annualized basis to $56.8 billion, with end-of-period deposits at $60.1 billion[4]. - Total deposits grew to $60.14 billion, up from $39.70 billion, which is a 51.5% increase year-over-year[42]. - Common equity Tier 1 capital ratio was 10.70%, exceeding the "well-capitalized" regulatory threshold[28]. - Total equity as of September 30, 2025, was $7,443,950, an increase from $7,285,765 in Q2 2025 and $3,535,489 in Q3 2024[26]. Expenses and Provisions - GAAP noninterest expense for Q3 2025 was $419.3 million, an increase of $26.1 million, or 6.6%, from the linked quarter and $166.8 million, or 66.1%, from Q3 2024[17]. - Provision for credit losses increased by $1.5 million from the linked quarter and $4.5 million from Q3 2024, totaling $22.5 million[32]. - The provision for credit losses was $22.50 million for the third quarter of 2025, compared to $18.00 million in 2024, reflecting a 25.0% increase[43]. Acquisitions and Integration - The acquisition of Heartland Financial was successfully integrated into UMB's core systems in mid-October 2025[4]. - Goodwill increased to $1.84 billion as of September 30, 2025, from $207.39 million in 2024, indicating a substantial rise in intangible assets[42].

Performance Overview - The Third Avenue Small-Cap Value Fund returned 7.18% in Q3 2025, underperforming the MSCI USA Small Cap Value Index at 8.97% and the Russell 2000 Value Index at 12.60% [2] - The Fund's annualized returns for the trailing three-year and five-year periods were 15.11% and 16.09%, respectively [2] Positive Contributors - Supernus Pharmaceuticals (SUPN) was the largest positive contributor, benefiting from a strong financial position, profitability, an expanding neurology drug portfolio, and a successful acquisition [3] - Investors Title Company (ITIC) saw positive performance due to increased real estate refinancing activity [3] - UMB Financial Corporation (UMBF) successfully integrated its acquisition of Heartland Financial, showcasing operational competence [3] Negative Contributors - Atlanta Braves Holdings (BATRA) was a negative contributor, though it is perceived to have an attractive asset base and potential for favorable resource conversion [4] - UniFirst Corporation (UNF) faced pressure to demonstrate its value proposition after rejecting an acquisition offer from Cintas Corporation (CTAS) [4] - FRP Holdings (FRPH) was impacted by a lack of confidence in government spending affecting the D.C. metro area [4] Investment Strategy - The Fund focuses on acquiring companies in transitional states, aiming to capitalize on undervalued businesses with potential for future growth [5] - Investment activity emphasizes companies that are well-financed, trading at discounts to net asset value, and have identifiable levers for value creation [6] - The Fund's turnover rate is approximately 20%, indicating a long-term investment horizon of about five years, contrasting with the average turnover of 91.7% in the small-cap value fund universe [7] Types of Investment Opportunities - The Fund identifies three broad types of investment opportunities: 1. Companies facing industry-wide headwinds that can improve through restructuring [9] 2. Companies with current economic returns that have underappreciated self-help opportunities [9] 3. Event-driven situations that offer unique return profiles through transformational changes [9] Recent Transactions - Ambac Financial (AMBC) completed the sale of its legacy financial guarantee business, leading to a significant cash inflow and a transformation towards insurance distribution [11][12] - The Fund initiated new positions in Boise Cascade (BCC) and Rogers Corporation (ROG) during the quarter, while also adding to existing positions like UniFirst Corporation (UNF) [14] Company Profiles - Boise Cascade is a leading manufacturer and distributor of building materials, facing challenges due to slowing housing activity but retaining a strong financial position [15][16] - Rogers Corporation specializes in electronic and materials technology solutions, facing growth challenges but possessing valuable intellectual property and a strong balance sheet [18][19][20]

Core Viewpoint - UMB Financial (UMBF) is positioned to continue its earnings-beat streak, having surpassed earnings estimates consistently in recent quarters [1][5]. Earnings Performance - In the most recent quarter, UMB reported earnings of $2.96 per share, exceeding the expected $2.35 per share by 25.96% [2]. - For the previous quarter, UMB's earnings were $2.58 per share against an expectation of $2.21 per share, resulting in a surprise of 16.74% [2]. Earnings Estimates and Predictions - UMB's earnings estimates have been trending higher, supported by its history of earnings surprises [5]. - The stock has a positive Zacks Earnings ESP of +0.49%, indicating bullish sentiment among analysts regarding the company's earnings prospects [8]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong likelihood of another earnings beat in the upcoming report [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7].