UMB Financial Launches $300M Preferred Stock Offering

The bank priced 12 million depositary shares, each tied to a newly issued fixed-rate preferred stock series.

June 02, 2025

UMB Raises Capital Through Preferred Stock Offering

UMB Financial has priced a $300 million public offering that brings fresh capital into play and expands the tools it can use to manage funding. On May 29, the company announced it would offer 12 million depositary shares—each one linked to its new Series B Preferred Stock.

This isn’t a common equity raise. Each depositary share represents a 1/400th interest in a share of the Series B Preferred Stock, which comes with a 7.750% fixed-rate reset and a $10,000 liquidation preference. Investors buying in will pay $25 per depositary share.

UMB is working with RBC Capital Markets and J.P. Morgan Securities as the lead underwriters on the deal. Assuming all goes as planned, the transaction will close on June 12.

Structure and Purpose

These are non-cumulative preferred shares. That means dividends don’t accrue if they’re not declared—but the fixed-rate reset structure is built to adjust with future market conditions. It gives UMB a capital source that doesn’t dilute common shareholders and offers room to flex as rates shift.

The offering was filed under the company’s shelf registration and will be made through a prospectus supplement. That filing and a press release detailing the terms are now public.

For UMB, this offering is about staying well-positioned. It reinforces long-term capital strength without depending on more expensive or restrictive financing. In a climate where flexibility matters, UMB is adding another lever it can pull.