UMB(UMBF) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Second Quarter 2025 Financial Highlights UMB Financial Corporation achieved strong financial results in Q2 2025, with significant growth in net income, EPS, and operating income, driven by balance sheet expansion, increased fee income, improved asset quality, and enhanced operating leverage, with the Heartland acquisition contributing significantly Key Financial Highlights for Q2 2025 | Metric | Amount/Ratio | | :------------------------------------------ | :---------- | | GAAP Net Income Attributable to Common Shareholders | $215.4 million | | GAAP Diluted Earnings Per Share | $2.82 | | GAAP Net Income Year-over-Year Growth | 112.5% | | Operating Net Income Attributable to Common Shareholders (Non-GAAP) | $225.4 million | | Operating Diluted Earnings Per Share (Non-GAAP) | $2.96 | | Operating Net Income Year-over-Year Growth | 112.9% | | Operating Pre-Provision Net Revenue (Non-GAAP) | $309.2 million | | Return on Average Assets | 1.29% | | Return on Average Common Equity | 12.7% | | Efficiency Ratio | 53.4% | | Fully Taxable Equivalent Net Interest Margin | 3.10% | | Average Loans Quarter-over-Quarter Growth | 12.7% | | Average Total Loans | $36.4 billion | | Average Loans Year-over-Year Growth | 52.9% | | Net Interest Income | $467.0 million | | Net Interest Income Quarter-over-Quarter Growth | 17.4% | | Noninterest Income | $222.2 million | | Noninterest Income Quarter-over-Quarter Growth | 33.7% | | Investment Gains in Noninterest Income | $37.7 million | | Of which, Voyager Technologies, Inc. Investment Gains | $29.4 million | | Period-End Total Loans | $36.8 billion | | Average Deposits Quarter-over-Quarter Growth | 10.7% | | Average Total Deposits | $55.6 billion | | Period-End Total Deposits | $60.0 billion | | Total Assets as of June 30, 2025 | $71.8 billion | | Total Assets Year-over-Year Growth | 61.4% | | Net Charge-off Rate (bps of average loans) | 17 bps | | Nonperforming Loan Rate (bps of total loans) | 26 bps | - The company completed a public offering of Series B Non-Cumulative Perpetual Preferred Stock, raising approximately $294.1 million in net Tier 1 regulatory capital[3] - Successfully integrated the acquired Heartland Financial, USA, Inc. (HTLF) Minnesota franchise into UMB's core system, with plans to complete the conversion of the remaining HTLF franchises by October 2025[3] CEO Commentary CEO Mariner Kemper highlighted strong Q2 financial performance, attributing it to robust growth across the balance sheet, exceptional fee income, improved asset quality metrics, and enhanced operating leverage, specifically noting the ongoing benefits from the Heartland acquisition and the successful exit of the Voyager Technologies, Inc. investment - Total revenue reached $689.2 million in Q2, a 22.2% quarter-over-quarter increase, primarily driven by organic growth in UMB's legacy business and ongoing benefits from the Heartland acquisition[6] - Operating net income attributable to common shareholders doubled year-over-year to $225.4 million, representing a 33.5% quarter-over-quarter increase[6] - Net interest margin expanded by 14 basis points quarter-over-quarter to 3.10%, primarily driven by Heartland's granular core deposit base[6] - Fee income primarily benefited from net growth in UMB Capital Corporation's managed investment portfolio and other private investments, including $29.4 million in pre-tax gains from the June IPO of Voyager Technologies, Inc[6] - Net charge-offs improved to $15.5 million in Q2, representing 17 basis points of average loans, including $6.5 million in losses related to the acquired Heartland loan portfolio[6] - The Heartland Minnesota franchise has been successfully converted to UMB's core platform, with the remaining acquired businesses expected to complete conversion in October[6] Financial Performance Overview Summary of Quarterly Financial Results This section presents key GAAP and non-GAAP financial metrics for Q2 2025, Q1 2025, and Q2 2024, highlighting significant improvements in net income, operating income, and efficiency ratios Summary of Quarterly Financial Results (Thousands of Dollars, except per share data and percentages) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------------------------------ | :------------- | :------------- | :------------- | | Net Income (GAAP) | $217,394 | $81,333 | $101,345 | | Net Income Attributable to Common Shareholders (GAAP) | $215,382 | $79,320 | $101,345 | | Diluted Earnings Per Share (GAAP) | $2.82 | $1.21 | $2.07 | | Operating Pre-Provision Net Revenue (Non-GAAP) | $309,182 | $233,293 | $146,840 | | Operating Net Income Attributable to Common Shareholders (Non-GAAP) | $225,379 | $168,878 | $105,873 | | Return on Average Assets (GAAP) | 1.29% | 0.54% | 0.96% | | Return on Average Common Equity (GAAP) | 12.72% | 5.86% | 12.73% | | Efficiency Ratio (GAAP) | 53.38% | 65.19% | 63.37% | | Operating Return on Average Assets (Non-GAAP) | 1.35% | 1.14% | 1.00% | | Operating Return on Average Common Equity (Non-GAAP) | 13.31% | 12.47% | 13.30% | | Operating Efficiency Ratio (Non-GAAP) | 51.48% | 55.56% | 61.86% | Summary of Year-to-Date Financial Results This section provides a summary of year-to-date financial performance for 2025 and 2024, showing growth in net income and operating income, a slight decrease in GAAP EPS and ROAA, and improvements in non-GAAP operating metrics Summary of Year-to-Date Financial Results (Thousands of Dollars, except per share data and percentages) | Metric | H1 2025 | H1 2024 | | :-------------------------------------------------- | :------------------------- | :------------------------- | | Net Income (GAAP) | $298,727 | $211,603 | | Net Income Attributable to Common Shareholders (GAAP) | $294,702 | $211,603 | | Diluted Earnings Per Share (GAAP) | $4.16 | $4.32 | | Operating Pre-Provision Net Revenue (Non-GAAP) | $542,475 | $304,291 | | Operating Net Income Attributable to Common Shareholders (Non-GAAP) | $394,257 | $226,585 | | Return on Average Assets (GAAP) | 0.94% | 1.01% | | Return on Average Common Equity (GAAP) | 9.67% | 13.41% | | Efficiency Ratio (GAAP) | 58.69% | 63.41% | | Operating Return on Average Assets (Non-GAAP) | 1.25% | 1.08% | | Operating Return on Average Common Equity (Non-GAAP) | 12.94% | 14.36% | | Operating Efficiency Ratio (Non-GAAP) | 53.31% | 60.94% | Summary of Revenue Total revenue significantly increased quarter-over-quarter and year-over-year, driven by substantial growth in net interest income and noninterest income, particularly from investment securities gains Summary of Revenue (Thousands of Dollars) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | QoQ Change | YoY Change | | :---------------------------------- | :------------- | :------------- | :------------- | :--------- | :--------- | | 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 | | Deposit Account Service Charges | $28,865 | $27,457 | $22,261 | $1,408 | $6,604 | | Insurance Premiums and Commissions | $189 | $178 | $267 | $11 | $(78) | | Brokerage Fees | $20,525 | $18,102 | $14,020 | $2,423 | $6,505 | | Bank Card 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 | | Fully Taxable Equivalent Net Interest Income | $475,315 | $405,144 | $251,515 | | | | Fully Taxable Equivalent Net Interest Margin | 3.10% | 2.96% | 2.51% | | | | Noninterest Income as a Percentage of Total Revenue | 32.2% | 29.5% | 37.2% | | | Detailed Financial Analysis Net Interest Income Net interest income saw significant quarter-over-quarter and year-over-year growth in Q2 2025, driven by organic average loan growth, benefits from the Heartland acquisition (including favorable purchase accounting amortization), and an expanded net interest margin - Net interest income totaled $467.0 million in Q2 2025, an increase of $69.4 million or 17.4% from the prior quarter[10] - Growth was primarily driven by continued organic growth in average loans and an additional month of benefit from the Heartland franchise acquisition, including favorable purchase accounting amortization, partially offset by increased interest expense due to strong deposit growth[10][11] - The net interest margin for Q2 was 3.10%, an increase of 14 basis points from the prior quarter, mainly due to higher yields on loans and securities, largely attributable to the net impact of purchase accounting amortization income on acquired Heartland assets and liabilities, and changes in the earning asset mix[13] - Average loan yields increased by 13 basis points quarter-over-quarter, and total earning asset yields increased by 17 basis points quarter-over-quarter; total cost of funds increased by 2 basis points quarter-over-quarter to 2.60%[13] - Compared to the prior year, net interest income increased by $221.9 million, or 90.5%, driven by a $21.2 billion (52.7%) increase in average earning assets, primarily due to rate and mix changes related to the Heartland acquisition[13] Noninterest Income Noninterest income experienced substantial quarter-over-quarter and year-over-year growth in Q2 2025, primarily driven by significant investment securities gains (especially from the Voyager Technologies, Inc. IPO), alongside increases in trust and securities processing, bank card, and brokerage fees - Noninterest income increased by $56.0 million, or 33.7%, quarter-over-quarter in Q2 2025[13] - Key drivers of the quarter-over-quarter increase included: $42.5 million in investment securities gains (of which $29.4 million was a pre-tax gain from the Voyager Technologies, Inc. IPO and $8.2 million from the sale of two non-marketable investments); $3.5 million in trust and securities processing income; $2.7 million in bank card income; and $2.4 million in brokerage income[13] - Compared to the prior year, noninterest income increased by $77.3 million, or 53.3%, in Q2 2025[17] - Key drivers of the year-over-year increase included: $39.6 million in investment securities gains (primarily from Voyager Technologies, Inc. investment gains and non-marketable investment sales); $13.3 million in trust and securities processing income; $6.7 million in bank card income; $6.5 million in brokerage income; and $6.6 million in deposit account service charges (driven by the HTLF acquisition and increased corporate service fees)[17] Noninterest Expense GAAP noninterest expense increased quarter-over-quarter and year-over-year in Q2 2025, primarily due to the Heartland acquisition impacting salaries, intangible asset amortization, processing fees, and regulatory fees, though acquisition-related non-recurring costs decreased quarter-over-quarter - GAAP noninterest expense was $393.2 million in Q2 2025, an increase of $8.4 million (2.2%) quarter-over-quarter and $144.1 million (57.9%) year-over-year[16] - Q2 expenses included $13.5 million in acquisition-related and other non-recurring costs, down from $53.2 million in Q1[16][22] - Key drivers of the quarter-over-quarter increase included: $16.8 million in salaries and wages (due to a full quarter of HTLF acquired employees); $7.8 million in intangible asset amortization; $7.7 million in charitable contributions; $3.3 million in marketing and business development; $2.8 million in processing fees; $2.5 million in occupancy expense; $1.6 million in supplies and services; and $1.0 million in regulatory fees[18] - The quarter-over-quarter increase was partially offset by: $19.0 million decrease in incentive and commission expense; $8.3 million decrease in payroll taxes and 401(k) expense (due to Q1 severance, retention, and change-in-control payments for HTLF employees); and $10.1 million decrease in legal and consulting expense (due to significant acquisition-related expenses in Q1)[18] - Key drivers of the year-over-year increase included: $70.7 million in salaries and employee benefits (due to additional employees from the HTLF acquisition); $23.4 million in intangible asset amortization; $13.9 million in processing fees; and $11.6 million in other expenses (primarily due to increased charitable contributions and operating losses)[18] Income Taxes The company maintained a stable effective tax rate for the first half of 2025 compared to the same period in 2024 - The company's effective tax rate for the six months ended June 30, 2025, was 18.8%, compared to 18.9% for the same period in 2024[19] Balance Sheet and Capital Balance Sheet Overview The company's average total assets significantly increased quarter-over-quarter and year-over-year in Q2 2025, reflecting the combined impact of the Heartland acquisition and organic growth - Average total assets for Q2 2025 were $66.9 billion, up from $60.0 billion in the prior quarter and $42.5 billion in the same period of 2024[20] Average Loans and Leases Average loans and leases showed strong quarter-over-quarter and year-over-year growth in Q2 2025, driven by organic momentum in UMB's legacy business and balances from the Heartland acquisition, with commercial real estate and commercial and industrial loans being the largest growth categories Summary of Average Loans and Leases (Thousands of Dollars) | Loan Category | Q2 2025 | Q1 2025 | Q2 2024 | QoQ Change | YoY Change | | :-------------------- | :------------- | :------------- | :------------- | :--------- | :--------- | | Commercial and Industrial | $14,213,008 | $12,761,998 | $9,926,855 | $1,451,010 | $4,286,153 | | Professional Loans | $561,669 | $522,583 | $502,646 | $39,086 | $59,023 | | Commercial Real Estate | $16,163,813 | $14,074,863 | $9,360,991 | $2,088,950 | $6,802,822 | | Consumer Real Estate | $4,255,571 | $3,819,602 | $2,998,560 | $435,969 | $1,257,011 | | Consumer | $295,118 | $264,467 | $159,743 | $30,651 | $135,375 | | Credit Card | $754,601 | $689,645 | $617,502 | $64,956 | $137,099 | | Leases and Other | $162,973 | $176,539 | $239,532 | $(13,566) | $(76,559) | | Total Loans | $36,406,753 | $32,309,697 | $23,805,829 | $4,097,056 | $12,600,924 | - Average loans increased by $4.1 billion (12.7%) quarter-over-quarter and $12.6 billion (52.9%) year-over-year in Q2 2025[21] - These increases reflect continued organic growth momentum in UMB's legacy business and the impact of acquired HTLF balances[21] Average Securities Total average securities significantly increased quarter-over-quarter and year-over-year in Q2 2025, with the largest increases in available-for-sale securities, particularly mortgage-backed securities and U.S. Treasury securities Summary of Average Securities (Thousands of Dollars) | Security Type | Q2 2025 | Q1 2025 | Q2 2024 | QoQ Change | YoY Change | | :-------------------------- | :------------- | :------------- | :------------- | :--------- | :--------- | | Available-for-Sale Securities: | | | | | | | U.S. Treasury | $1,806,041 | $1,397,844 | $900,348 | $408,197 | $905,693 | | U.S. Agency | $85,969 | $133,852 | $210,151 | $(47,883) | $(124,182) | | Mortgage-Backed Securities | $6,285,195 | $5,303,047 | $3,667,289 | $982,148 | $2,617,906 | | State and Local Government | $2,403,741 | $2,084,441 | $1,213,000 | $319,300 | $1,190,741 | | Corporate Debt | $271,915 | $317,378 | $323,751 | $(45,463) | $(51,836) | | Mortgage Debt | $553,844 | $398,418 | $336,273 | $155,426 | $217,571 | | Total Available-for-Sale Securities | $11,406,705 | $9,634,980 | $6,650,812 | $1,771,725 | $4,755,893 | | Held-to-Maturity Securities: | | | | | | | U.S. Agency | $49,643 | $112,547 | $120,563 | $(62,904) | $(70,920) | | Mortgage-Backed Securities | $2,439,844 | $2,492,446 | $2,656,096 | $(52,602) | $(216,252) | | State and Local Government | $3,108,030 | $3,022,878 | $2,798,371 | $85,152 | $309,659 | | Total Held-to-Maturity Securities | $5,597,517 | $5,627,871 | $5,575,030 | $(30,354) | $22,487 | | Trading Securities | $16,693 | $20,863 | $26,381 | $(4,170) | $(9,688) | | Other Securities | $679,212 | $586,866 | $448,015 | $92,346 | $231,197 | | Total Securities | $17,700,127 | $15,870,580 | $12,700,238 | $1,829,547 | $4,999,889 | - Total average securities increased by 11.5% quarter-over-quarter and 39.4% year-over-year[23] Average Deposits Average deposits showed strong quarter-over-quarter and year-over-year growth in Q2 2025, driven by organic momentum in UMB's legacy business and balances from the Heartland acquisition, with interest-bearing demand and savings deposits showing the largest increases Summary of Average Deposits (Thousands of Dollars) | Deposit Type | Q2 2025 | Q1 2025 | Q2 2024 | QoQ Change | YoY Change | | :-------------------------- | :------------- | :------------- | :------------- | :--------- | :--------- | | Noninterest-Bearing Demand Deposits | $14,403,211 | $13,428,205 | $10,103,035 | $975,006 | $4,300,176 | | Interest-Bearing Demand and Savings Deposits | $37,958,601 | $33,991,906 | $21,914,116 | $3,966,695 | $16,044,485 | | Time Deposits | $3,287,556 | $2,864,408 | $2,323,610 | $423,148 | $963,946 | | Total Deposits | $55,649,368 | $50,284,519 | $34,340,761 | $5,364,849 | $21,308,607 | | Noninterest-Bearing Deposits as a Percentage of Total Deposits | 25.9% | 26.7% | 29.4% | | | - Average deposits increased by 10.7% quarter-over-quarter and 62.1% year-over-year[24] - These increases reflect continued organic growth momentum in UMB's legacy business and the impact of acquired HTLF balances[24] Capital UMB Financial Corporation maintained strong regulatory capital ratios, exceeding all 'well-capitalized' thresholds, enhanced Tier 1 capital through a Series B preferred stock offering, and announced the redemption of Series A preferred stock Capital Information (Thousands of Dollars, except per share data and percentages) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------- | :------------- | :------------- | | Total Equity | $7,285,765 | $6,748,434 | $3,227,347 | | Total Common Equity | $6,885,023 | $6,637,730 | $3,227,347 | | Book Value Per Share | $90.68 | $87.43 | $66.21 | | Tangible Book Value Per Share (Non-GAAP) | $59.80 | $56.40 | $60.58 | | Regulatory Capital: | | | | | Common Equity Tier 1 Capital | $4,974,093 | $4,767,403 | $3,591,755 | | Tier 1 Capital | $5,378,860 | $4,878,108 | $3,591,755 | | Total Capital | $6,438,598 | $5,914,197 | $4,214,712 | | Regulatory Capital Ratios: | | | | | Common Equity Tier 1 Ratio | 10.39% | 10.11% | 11.14% | | Tier 1 Risk-Based Capital Ratio | 11.24% | 10.35% | 11.14% | | Total Risk-Based Capital Ratio | 13.46% | 12.54% | 13.08% | | Tier 1 Leverage Ratio | 8.34% | 8.47% | 8.50% | - As of June 30, 2025, all regulatory capital ratios exceeded the 'well-capitalized' regulatory thresholds[27] - The public offering of Series B Non-Cumulative Perpetual Preferred Stock was completed in Q2, raising approximately $294.1 million in net Tier 1 regulatory capital[3][27] - In June 2025, the company announced the redemption of $115.0 million of Series A Non-Cumulative Perpetual Preferred Stock, which was completed in mid-July 2025[27] Asset Quality Credit Quality Metrics Credit quality improved in Q2 2025, with net charge-offs significantly decreasing quarter-over-quarter (though increasing year-over-year) and nonperforming loans also improving, while the provision for credit losses decreased quarter-over-quarter as Day 1 provision for Heartland loans was no longer included Summary of Credit Quality (Thousands of Dollars, except percentages and basis points) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------------------- | :------------- | :------------- | :------------- | :------------- | :------------- | | Net Charge-offs - Total Loans | $15,462 | $35,872 | $8,935 | $8,454 | $2,856 | | Net Loan Charge-offs as a Percentage of Average Loans | 0.17% | 0.45% | 0.14% | 0.14% | 0.05% | | Loans 90 Days or More Past Due | $6,813 | $6,346 | $7,602 | $7,133 | $5,644 | | Loans 90 Days or More Past Due as a Percentage of Total Loans | 0.02% | 0.02% | 0.03% | 0.03% | 0.02% | | Nonaccrual and Restructured Loans | $97,029 | $100,885 | $19,282 | $19,291 | $13,743 | | Nonaccrual and Restructured Loans as a Percentage of Total Loans | 0.26% | 0.28% | 0.08% | 0.08% | 0.06% | | Provision for Credit Losses | $21,000 | $86,000 | $19,000 | $18,000 | $14,050 | - Net charge-offs totaled $15.5 million (0.17% of average loans) in Q2, down from $35.9 million (0.45% of average loans) in the prior quarter[28] - Approximately $6.5 million of net charge-offs in Q2 2025 were related to acquired Heartland loans, compared to $29.7 million in Q1 2025[28] - The provision for credit losses decreased by $65.0 million quarter-over-quarter, as Q1 2025 included $62.0 million in Day 1 provision expense to establish the allowance for credit losses on acquired HTLF loans[26] Corporate Actions and Information Dividend Declaration The Board of Directors declared a quarterly cash dividend of $0.40 per share on common stock and a dividend of $264.79 per share ($0.66 per depositary share) on Series B 7.75% Preferred Stock - A quarterly cash dividend of $0.40 per share on common stock will be paid on October 1, 2025, to common shareholders of record at the close of business on September 10, 2025[29] - A dividend of $264.79 per share ($0.66 per depositary share) on Series B 7.75% Preferred Stock will be paid on October 15, 2025, to preferred shareholders of record at the close of business on September 30, 2025[29] Conference Call Details UMB Financial Corporation will host a conference call on July 30, 2025, to discuss Q2 2025 earnings results, with replay options available - The company will host a conference call on Wednesday, July 30, 2025, at 8:30 a.m. (Central Time) to discuss Q2 2025 earnings results[30] - Toll-free and international dial-in numbers and access codes are provided, and investors can also access the live webcast and replay via the company's investor relations website or a designated link[30] Non-GAAP Financial Information This report provides several non-GAAP financial measures, such as operating net income, operating EPS, operating ROACE, operating ROAA, operating noninterest expense, operating efficiency ratio, operating pre-provision net revenue, and tangible book value per share, which supplement GAAP results by adjusting for items related to acquisitions, severance, and FDIC special assessments that management believes do not reflect the company's core operating performance - Non-GAAP financial measures provided in this press release include: operating net income attributable to common shareholders, operating diluted earnings per share, operating return on average common equity, operating return on average assets, operating noninterest expense, operating efficiency ratio, operating pre-provision net revenue, operating diluted pre-provision net revenue per share, fully taxable equivalent operating pre-provision net revenue, fully taxable equivalent operating diluted pre-provision net revenue per share, tangible common shareholders' equity, and tangible book value per share[31] - These non-GAAP measures supplement GAAP results by adjusting for items related to acquisitions and severance, as well as FDIC special assessments, which management believes do not reflect the company's core operating performance[31] - The report details the calculation methods for each non-GAAP financial measure, explaining how they are adjusted from the most comparable GAAP measures[32][33][34][35][36][37] Forward-Looking Statements This press release contains forward-looking statements subject to various assumptions, risks, and uncertainties, including macroeconomic conditions, inflation, and geopolitical instability, with no commitment to update these statements unless required by applicable securities laws - This press release contains forward-looking statements that are not strictly based on historical or current facts and are subject to assumptions, risks, and uncertainties, many of which are beyond the company's control[38] - Factors that could cause actual results to differ from forward-looking statements include: macroeconomic and adverse developments, collateral effects of domestic and international bank failures and challenges, sustained levels of high inflation, the possibility of a recession following aggressive quantitative tightening by the Federal Reserve, and broader impacts from military actions in the Middle East and Russia[38] - The company does not undertake any obligation to update any forward-looking statements, except as required by applicable securities laws[38] About UMB Financial Corporation UMB Financial Corporation is a Kansas City, Missouri-based financial services company offering commercial, personal, and institutional banking services across multiple U.S. states, serving national commercial clients and global institutional clients - UMB Financial Corporation (NASDAQ: UMBF) is a financial services company headquartered in Kansas City, Missouri[40] - The company offers commercial banking (including comprehensive deposit, lending, investment, and retirement plan services), personal banking (including comprehensive deposit, lending, wealth management, and financial planning services), and institutional banking (including asset servicing, corporate trust solutions, investment banking, and healthcare services)[40] - UMB has branches in Missouri, Arizona, California, Colorado, Iowa, Kansas, Illinois, Minnesota, Nebraska, New Mexico, Oklahoma, Texas, and Wisconsin, serving commercial clients nationwide and institutional clients in various countries globally[40] Consolidated Financial Statements Consolidated Balance Sheets The consolidated balance sheets show significant year-over-year growth in total assets, loans, and deposits as of June 30, 2025, reflecting the substantial impact of the Heartland acquisition, with shareholders' equity also increasing considerably Summary of Consolidated Balance Sheets (Thousands of Dollars) | Metric | June 30, 2025 | June 30, 2024 | | :------------------------------------------ | :------------- | :------------- | | Assets | | | | Loans | $36,807,933 | $24,197,462 | | Allowance for Loan Credit Losses | $(389,918) | $(239,167) | | Net Loans | $36,418,015 | $23,958,295 | | Total Securities | $18,401,383 | $13,130,638 | | Federal Funds Sold and Agreements to Resell | $737,191 | $247,462 | | Interest-Bearing Deposits in Banks | $10,026,186 | $4,640,418 | | Cash and Due from Banks | $1,087,696 | $464,719 | | Goodwill | $1,812,694 | $207,385 | | Other Intangible Assets, Net | $531,918 | $67,141 | | Total Assets | $71,760,153 | $44,469,414 | | Liabilities | | | | Total Deposits | $59,987,009 | $36,517,570 | | Federal Funds Purchased and Agreements to Repurchase | $2,932,606 | $2,217,033 | | Short-Term Borrowings | — | $1,300,000 | | Long-Term Debt | $657,324 | $384,245 | | Total Liabilities | $64,474,388 | $41,242,067 | | Shareholders' Equity | | | | Series B Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock | $294,062 | — | | Common Stock | $78,666 | $55,057 | | Capital Surplus | $4,000,973 | $1,132,301 | | Retained Earnings | $3,409,706 | $2,984,152 | | Accumulated Other Comprehensive Loss, Net | $(442,047) | $(605,634) | | Treasury Stock | $(166,300) | $(338,529) | | Total Shareholders' Equity | $7,285,765 | $3,227,347 | | Total Liabilities and Shareholders' Equity | $71,760,153 | $44,469,414 | Consolidated Statements of Income The consolidated statements of income show strong growth in both net interest income and noninterest income for the three and six months ended June 30, 2025, compared to the same period in 2024, leading to a significant increase in net income attributable to common shareholders Summary of Consolidated Statements of Income (Thousands of Dollars, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Interest Income | $850,537 | $538,282 | $1,588,507 | $1,058,347 | | 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 | | Total Noninterest Income | $222,185 | $144,919 | $388,383 | $304,163 | | Total Noninterest Expense | $393,168 | $249,067 | $777,955 | $503,871 | | Net Income Attributable to Common Shareholders | $215,382 | $101,345 | $294,702 | $211,603 | | Diluted Net Income Per Share | $2.82 | $2.07 | $4.16 | $4.32 | Consolidated Statements of Comprehensive Income The consolidated statements of comprehensive income show significant growth in comprehensive income for the three and six months ended June 30, 2025, compared to the same period in 2024, primarily driven by increased net income and positive changes in unrealized gains/losses on debt securities Summary of Consolidated Statements of Comprehensive Income (Thousands of Dollars) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income | $217,394 | $101,345 | $298,727 | $211,603 | | Other Comprehensive Income (Loss), Pre-Tax | $67,720 | $(14,630) | $174,477 | $(64,851) | | Other Comprehensive Income (Loss) | $50,651 | $(11,096) | $131,003 | $(48,699) | | Comprehensive Income | $268,045 | $90,249 | $429,730 | $162,904 | Consolidated Statements of Shareholders' Equity The consolidated statements of shareholders' equity reflect a substantial increase in total shareholders' equity from January 1, 2025, to June 30, 2025, primarily due to stock issuance related to the Heartland acquisition and the issuance of Series B preferred stock Summary of Consolidated Statements of Shareholders' Equity (Thousands of Dollars) | Metric | Balance as of January 1, 2025 | Balance as of June 30, 2025 | | :------------------------------------------ | :---------------- | :---------------- | | Preferred Stock | — | $404,767 | | Common Stock | $55,057 | $78,666 | | Capital Surplus | $1,145,638 | $4,000,973 | | Retained Earnings | $3,174,948 | $3,409,706 | | Accumulated Other Comprehensive Loss, Net | $(573,050) | $(442,047) | | Treasury Stock | $(336,052) | $(166,300) | | Total Shareholders' Equity | $3,466,541 | $7,285,765 | | Stock Issued for Acquisition, Net of Issuance Costs | — | $2,898,216 | | Preferred Stock Issued | — | $294,062 | Supplementary Financial Data Average Balances / Yields and Rates Average balances, yields, and rates data show increases in total earning assets and net interest margin for Q2 2025 compared to Q2 2024, while the cost of interest-bearing liabilities decreased Average Balances / Yields and Rates for Q2 2025 vs. Q2 2024 (Thousands of Dollars, except percentages) | Metric | Q2 2025 Average Balance | Q2 2025 Average Yield/Rate | Q2 2024 Average Balance | Q2 2024 Average Yield/Rate | | :-------------------------- | :--------------------- | :-------------------------- | :--------------------- | :-------------------------- | | Loans, Net of Unearned Interest | $36,406,753 | 6.75% | $23,805,829 | 6.77% | | Total Securities | $17,683,434 | 3.71% | $12,673,857 | 2.95% | | Total Earning Assets | $61,451,738 | 5.61% | $40,239,106 | 5.44% | | Interest-Bearing Deposits | $41,246,157 | 3.34% | $24,237,726 | 3.99% | | Total Interest-Bearing Liabilities | $44,668,948 | 3.44% | $28,403,901 | 4.15% | | Net Interest Spread | | 2.17% | | 1.29% | | Net Interest Margin | | 3.10% | | 2.51% | Average Balances / Yields and Rates for H1 2025 vs. H1 2024 (Thousands of Dollars, except percentages) | Metric | H1 2025 Average Balance | H1 2025 Average Yield/Rate | H1 2024 Average Balance | H1 2024 Average Yield/Rate | | :-------------------------- | :--------------------- | :-------------------------- | :--------------------- | :-------------------------- | | Loans, Net of Unearned Interest | $34,369,543 | 6.69% | $23,579,936 | 6.70% | | Total Securities | $16,755,569 | 3.60% | $12,835,384 | 2.91% | | Total Earning Assets | $58,498,488 | 5.53% | $40,059,211 | 5.38% | | Interest-Bearing Deposits | $39,063,362 | 3.34% | $23,848,724 | 3.92% | | Total Interest-Bearing Liabilities | $42,406,865 | 3.44% | $28,215,935 | 4.09% | | Net Interest Spread | | 2.09% | | 1.29% | | Net Interest Margin | | 3.04% | | 2.50% | Business Segment Information Commercial Banking remains the largest segment for net interest income and net income, showing significant growth in Q2 2025 compared to Q2 2024, while Institutional Banking also contributed positively, and Personal Banking transitioned from a net loss to a net income Business Segment Performance for Q2 2025 vs. Q2 2024 (Thousands of Dollars) | Segment | Q2 2025 Net Interest Income | Q2 2025 Net Income | Q2 2024 Net Interest Income | Q2 2024 Net Income | | :------------------ | :------------------------- | :----------------- | :------------------------- | :----------------- | | Commercial Banking | $322,619 | $139,788 | $161,163 | $71,706 | | Institutional Banking | $66,331 | $54,350 | $50,826 | $42,306 | | Personal Banking | $78,074 | $23,256 | $33,119 | $(12,667) | | Total | $467,024 | $217,394 | $245,108 | $101,345 | Business Segment Performance for H1 2025 vs. H1 2024 (Thousands of Dollars) | Segment | H1 2025 Net Interest Income | H1 2025 Net Income | H1 2024 Net Interest Income | H1 2024 Net Income | | :------------------ | :------------------------- | :----------------- | :------------------------- | :----------------- | | Commercial Banking | $596,536 | $201,452 | $319,145 | $153,814 | | Institutional Banking | $127,489 | $102,268 | $99,951 | $77,773 | | Personal Banking | $140,638 | $(4,993) | $65,446 | $(19,984) | | Total | $864,663 | $298,727 | $484,542 | $211,603 | - Commercial Banking's net income more than doubled year-over-year in Q2 2025[47] - Personal Banking transitioned from a net loss of $12.7 million in Q2 2024 to a net income of $23.3 million in Q2 2025[47] Non-GAAP Reconciliations This section provides detailed reconciliation tables for various non-GAAP financial measures to their most comparable GAAP metrics, including operating net income, operating noninterest expense, operating efficiency ratio, operating pre-provision net revenue, and tangible book value, with adjustments primarily for acquisition-related expenses, severance, and FDIC special assessments Reconciliation of Operating Net Income Attributable to Common Shareholders (Non-GAAP) (Thousands of Dollars, except per share data and percentages) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------ | :------------- | :------------- | :----------- | :----------- | | Net Income Attributable to Common Shareholders (GAAP) | $215,382 | $101,345 | $294,702 | $211,603 | | Adjustments: | | | | | | Day 1 Acquisition Provision Expense | — | — | $62,037 | — | | Acquisition-Related Expenses | $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 | $(3,144) | $(1,352) | $(29,866) | $(4,475) | | Total Non-GAAP Adjustments (After-Tax) | $9,997 | $4,528 | $99,555 | $14,982 | | Operating Net Income (Non-GAAP) | $225,379 | $105,873 | $394,257 | $226,585 | | Diluted Earnings Per Share (GAAP) | $2.82 | $2.07 | $4.16 | $4.32 | | Operating Diluted Earnings Per Share (Non-GAAP) | $2.96 | $2.16 | $5.56 | $4.63 | | Return on Average Assets (GAAP) | 1.29% | 0.96% | 0.94% | 1.01% | | Operating Return on Average Assets (Non-GAAP) | 1.35% | 1.00% | 1.25% | 1.08% | | Return on Average Common Equity (GAAP) | 12.72% | 12.73% | 9.67% | 13.41% | | Operating Return on Average Common Equity (Non-GAAP) | 13.31% | 13.30% | 12.94% | 14.36% | Reconciliation of Operating Noninterest Expense and Operating Efficiency Ratio (Non-GAAP) (Thousands of Dollars, except percentages) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------ | :------------- | :------------- | :----------- | :----------- | | Noninterest Expense | $393,168 | $249,067 | $777,955 | $503,871 | | Adjustments (Pre-Tax): | | | | | | Acquisition-Related Expenses | $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 (Pre-Tax) | $13,141 | $5,880 | $67,384 | $19,457 | | Operating Noninterest Expense (Non-GAAP) | $380,027 | $243,187 | $710,571 | $484,414 | | Efficiency Ratio (GAAP) | 53.38% | 63.37% | 58.69% | 63.41% | | Operating Efficiency Ratio (Non-GAAP) | 51.48% | 61.86% | 53.31% | 60.94% | Reconciliation of Operating Pre-Provision Net Revenue (Non-GAAP) (Thousands of Dollars, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 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 (Pre-Tax): | | | | | | Acquisition-Related Expenses | $13,494 | $9,550 | $66,663 | $9,981 | | Severance Expense | $373 | $130 | $818 | $276 | | FDIC Special Assessment | $(726) | $(3,800) | $(97) | $9,200 | | Operating Noninterest Expense (Non-GAAP) | $380,027 | $243,187 | $710,571 | $484,414 | | Operating Pre-Provision Net Revenue (Non-GAAP) | $309,182 | $146,840 | $542,475 | $304,291 | | Operating Diluted Pre-Provision Net Revenue Per Share (Non-GAAP) | $4.06 | $3.00 | $7.65 | $6.22 | Reconciliation of Tangible Book Value (Non-GAAP) (Thousands of Dollars, except per share data) | Metric | June 30, 2025 | June 30, 2024 | | :------------------------------------------ | :------------- | :------------- | | Total Common Shareholders' Equity (GAAP) | $6,885,023 | $3,227,347 | | Less: Intangible Assets | | | | Goodwill | $1,812,694 | $207,385 | | Other Intangible Assets, Net | $531,918 | $67,141 | | Total Intangible Assets, 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 | | Common Shareholders' Equity Per Share (Book Value) | $90.68 | $66.21 | | Tangible Common Shareholders' Equity Per Share (Tangible Book Value, Non-GAAP) | $59.80 | $60.58 |