UMB Financial Reports Surge in Earnings Following HTLF Acquisition

Strategic merger, loan growth, and strong net interest income fuel UMB’s impressive quarterly results.

August 01, 2025

Momentum from the Merger

UMB Financial delivered a sharp performance in the second quarter of 2025, powered by the recent HTLF acquisition and a sizable lift in both loan volumes and net interest income. The combination of expanded scale and strong operating momentum pushed revenue and earnings higher across the board.

The acquisition of Heartland Financial USA, Inc. closed in late January, and its impact is clear in the numbers. Total assets jumped to $71.8 billion from $50.4 billion at year-end. That expansion brought along a 43% increase in loans—reaching $36.8 billion—and a 39% increase in total deposits, which closed the quarter at $60 billion. The balance sheet expansion set the stage for stronger earnings and gave UMB new reach across key regions.

Higher Income, Higher Costs

Net interest income rose to $467 million for the quarter, up 91% from the same period last year. Loan growth and wider spreads drove that increase. Noninterest income also grew, rising to $222 million. Contributions came from brokerage, trust, and card fee activity, along with nearly $38 million in gains on investment securities.

Expenses climbed too. The company reported a 58% increase in noninterest expense, largely driven by compensation, amortization from intangibles tied to the merger, and higher processing costs. Still, operating leverage remained favorable, and net income more than doubled to $217 million.

Earnings Power and Capital

Net income available to common shareholders reached $215 million, or $2.82 per diluted share. Shareholders’ equity grew to $7.3 billion, up from $3.5 billion at year-end, with $2.9 billion in new common and preferred shares issued as part of the HTLF deal. Liquidity improved as well—cash and due from banks ended the quarter at $11 billion, up from $5 billion six months earlier.

Credit Metrics and Risk

Credit quality remained solid despite a rise in nonperforming loans tied to the newly acquired book. Total nonaccrual loans reached $97 million. The allowance for credit losses was updated accordingly, and management continued to monitor exposures closely. Net charge-offs stayed within expected levels for a portfolio of this size.

What Comes Next

The second quarter marked a turning point for UMB. With HTLF now integrated and scale in place, the company has positioned itself for growth—both in customer reach and earnings capacity. While cost management and credit oversight will remain top priorities, UMB’s performance shows what’s possible when a well-timed acquisition aligns with operational execution.