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UMB Financial Q3 2026 Earnings Results
UMB Financial reports record loan growth and announces Eldorado Savings Bank acquisition to expand West Coast retail presence.
In brief
UMB Financial reports record loan growth and announces Eldorado Savings Bank acquisition to expand West Coast retail presence. UMB Financial achieved $272.3 million net income with 51% year-over-year increase and announced acquisition of Eldorado Savings Bank for $500 million to boost West Coast retail deposits…
Q3 2026 Results
UMB Financial reported net income of $272.3 million, or $3.56 per diluted share, representing a 51.0% increase versus the prior year.
Record Loan Production
The company achieved $3.1 billion in total gross loan production, driving net loan growth of $1.4 billion for the quarter.
Average Loans Growth
Average loans increased to $41.7 billion, representing 11.1% annualized growth compared to the previous quarter.
Commercial and Industrial Growth
Commercial and industrial loan balances grew to $18.5 billion, reflecting a 21.5% annualized increase driven by activity in St. Louis, Texas, and Utah.
Operating Return on Tangible Equity
Operating return on tangible common equity reached 19.5% for the third quarter, supported by strong fee income and balance sheet growth.
Net Charge-offs and NPLs
Net charge-offs totaled 13 basis points of average loans, while nonperforming loans improved to 28 basis points from 31 basis points in the second quarter.
Institutional Banking Fee Growth
Institutional banking fee income increased 3.2% linked-quarter, contributing to an 18% year-to-date increase.
Fund Services Revenue
Fund services revenue increased $4.8 million linked quarter, reflecting 8.8% growth in trust and securities processing income.
Private Wealth Growth
Private wealth teams added $1.2 billion in net new assets through September, matching full-year 2025 levels.
Operating Leverage
Operating leverage reached 11.5% year to date as management maintained expense discipline alongside revenue growth.
Eldorado Savings Bank Acquisition
UMB Financial agreed to acquire Eldorado Savings Bank for approximately $500 million cash and stock, adding 35 branches, $2.1 billion in deposits, and $500 million in loans.
Acquisition Deposit Costs
Eldorado's deposit cost of 88 basis points is expected to lower total cost of deposits by four basis points upon closing.
Net Interest Margin
Net interest margin remained flat at 3.32% on a fully taxable equivalent basis compared to the linked quarter.
Average Deposits Growth
Average deposits increased to $58.2 billion, an increase of 1.1% from the linked quarter despite expected seasonal disbursements.
Demand Deposit Decline
Demand deposit account balances declined 6.1% linked-quarter, reflecting expected seasonal outflows within institutional banking.
Noninterest Expense
Noninterest expense totaled $399.5 million with fourth quarter operating expense projected to range from $404 million to $405 million.
At a glance
UMB Financial achieved $272.3 million net income with 51% year-over-year increase and announced acquisition of Eldorado Savings Bank for $500 million to boost West Coast retail deposits.
