UMB Reports Strong Q3 Earnings

The Kansas City-based bank saw a 64.5% surge in net income, bolstered by successful acquisition execution and solid balance sheet expansion.

October 29, 2025

UMB Financial Posts Record Q3 2025 Results with Major Growth Milestones

UMB’s third-quarter results show the impact of a year spent building momentum. The company completed its systems integration of Heartland Financial USA, Inc. (HTLF) in October—hitting a major post-acquisition milestone—and continued to drive growth across loans, deposits, and revenue.

GAAP net income available to common shareholders reached $180.4 million, or $2.36 per diluted share, up 64.5% from the same quarter last year. On a non-GAAP basis, operating income rose to $206.5 million, or $2.70 per share—an 87.2% increase year-over-year.

Growth fueled by HTLF and organic expansion

The HTLF acquisition is showing up clearly on the balance sheet. Average loans hit $37.1 billion, up more than 52% from Q3 2024. End-of-period deposits closed at $60.1 billion, a 60.8% jump year-over-year. These gains reflect both acquired balances and continued organic growth across UMB’s markets.

Revenue followed suit. Net interest income rose to $475 million, up 92% from the prior year. The bank’s net interest margin came in at 3.04%, down six basis points from the prior quarter, impacted by higher-cost deposit mix and lower loan accretion. Even so, average earning assets climbed $1.7 billion during the quarter, adding to the upside.

Diversified income and disciplined expense control

UMB continues to benefit from a balanced revenue model. Noninterest income totaled $203.3 million, up 28.1% from the prior year. Growth in trust and securities processing, deposit service charges, and bankcard fees offset lower investment gains compared to the second quarter.

Expenses came in at $419.3 million. That figure includes $35.6 million in acquisition and one-time costs. Backing those out, operating expenses grew just 1.3% from the prior quarter. The bank’s efficiency ratio improved to 58.1%, while the non-GAAP operating efficiency ratio tightened further to 53.0%.

Credit metrics stay in check

Asset quality remained stable. Net charge-offs totaled 0.20% of average loans, slightly up from the prior quarter but still historically low. Nonaccrual loans increased to $132 million, or 0.35% of total loans—primarily due to two legacy HTLF credits. These were fully reserved under purchase credit accounting.

Provision expense increased by $1.5 million quarter-over-quarter, driven by updates to economic models and portfolio movements.

Capital and liquidity positioned for flexibility

UMB continues to manage capital actively. During the quarter, the bank redeemed $115 million of preferred stock and retired $188.9 million in subordinated debt. At quarter-end, all regulatory capital ratios remained above well-capitalized thresholds, with a Common Equity Tier 1 ratio of 10.7%.

Looking ahead

The third quarter marks another step forward in UMB’s expansion. With the HTLF integration now complete and loan growth on pace for a record year, the bank is entering the final stretch of 2025 with solid footing.