A financial holding company that runs full-service banking through UMB Bank across the Midwestern, Southwestern, and Western United States, alongside UMB Fund Services, which handles fund accounting and transfer agency work for mutual funds and alternative-investment groups. The company operates through Commercial, Institutional, and Personal Banking segments, and in January 2025 it completed an all-stock acquisition of Heartland Financial USA.
UMB's net interest margin rose 40 bps to 3.50% as deposit costs fell, driving net income up 27.7% to $277.6M.
The expanded again, reaching 3.50% as falling deposit costs more than offset a decline in . rose 12.9% to $778.0 million and climbed 26.2% to $3.56, driven by 14.0% growth in and a 10.5% increase in noninterest income while expense growth was held to 1.6%. The combined franchise is now delivering the earnings power the Heartland acquisition promised, with the shifting from deal-related accounting to fundamental deposit repricing.
Key takeaways
rose 14.0% to $534.0 million, as an 11.6% increase in average loans and favorable deposit repricing amid lower short-term rates more than offset a decline in from the Heartland acquisition.
The on a tax-equivalent basis expanded 40 to 3.50%, up 12 basis points from 3.38% in the prior quarter, as the cost of interest-bearing liabilities continued to fall.
Section summaries
Management's Discussion and Analysis
Q2 2026 net income rose 26% to $271.8M driven by 14% higher net interest income and 10.5% higher noninterest income, with controlled expense growth.
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grew $65.5M (14.0%) , driven by favorable deposit repricing amid lower short-term rates and 11.6% average loan growth, partially offset by lower .
Noninterest income grew 10.5% to $244.0 million, led by a $15.0 million increase in trust and securities processing fees and a $4.9 million rise in brokerage fees, while net investment securities gains fell $10.6 million from the prior-year quarter.
Noninterest expense rose only 1.6% to $399.6 million, as acquisition-related costs dropped to $1.7 million from $13.5 million a year ago, confirming the integration has moved past its most expensive phase.
The increased to $28.0 million from $21.0 million a year ago, while improved to 0.18% of average loans and the held steady at 1.06% of total loans.
The company repurchased 38,158 shares during the quarter and declared a $0.50 per-share , while the total risk-based capital ratio rose to 13.80%.
What changed
The expanded to 3.50%, up from 3.10% in Q2 2025 and 3.38% in Q1 2026, confirming that the underlying margin of the combined portfolio is strengthening even as declines — the earlier concern that the margin would compress as accretion ran off has not materialized.
Acquisition-related costs fell to $1.7 million from $13.5 million in Q2 2025 and $53.2 million in Q1 2025, resolving the question of when integration expenses would decline and signaling that anticipated cost savings are beginning to appear.
Noninterest income grew 10.5% without a repeat of the $29.4 million Voyager Technologies gain that lifted Q2 2025, as trust and securities processing fees and brokerage fees provided the growth — addressing the concern that noninterest income could not grow without large one-time gains.
improved to 0.18% of average loans from 0.45% in Q1 2025, and nonperforming loans did not migrate into charge-offs at an accelerating pace, easing the concern that the acquired portfolio would drive credit normalization beyond the initial acquisition-related build.
The company's interest rate simulation now projects a 200-basis-point rate ramp would decrease year-one by only 1.2%, a further improvement from the 1.1% decline projected in Q1 2026 and a sharp reversal from the 3.9% decline projected before the Heartland acquisition closed.
What to watch
Whether the can hold near 3.50% as the rate cycle evolves, given the company's simulation now projects only a 1.2% decline in year-one under a 200-basis-point rate ramp.
Whether the remains near $28.0 million or begins to rise as the loan portfolio seasons, and whether stay at or below the 0.18% rate reported this quarter.
Whether noninterest income growth from trust, securities processing, and brokerage fees can sustain a double-digit pace now that investment securities gains have declined and large one-time items are absent.
Whether the company continues share repurchases at an increased pace, signaling management's confidence in the combined franchise's capital position after the all-stock Heartland acquisition.
Noninterest income increased $23.3M (10.5%) , led by trust and securities processing (up $15.0M) and brokerage fees (up $4.9M), while net investment securities gains fell $10.6M.
Noninterest expense rose only 1.6% to $399.6M, as a $13.6M increase in salaries and benefits was largely offset by lower legal/consulting costs and equipment expense; acquisition-related costs dropped to $1.7M from $13.5M.
The increased to $28.0M from $21.0M ; the allowance for credit losses on loans remained flat at 1.06% of total loans, while improved to 0.18% of average loans.
Total grew 10.2% to $8.0B, with a total risk-based capital ratio of 13.80%; the company repurchased 38,158 shares and declared a $0.50 quarterly .
Commercial Banking surged 73.9% for the six-month period on higher and lower provision expense, while Personal Banking swung to a $53.7M profit from a prior-year loss.
Quantitative and Qualitative Disclosures About Market Risk
Interest rate risk is managed via ALCO-guided balance sheet positioning; net interest income sensitivity is modeled under rate ramp and shock scenarios.
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Primary market risk is interest rate risk from non-trading assets; trading portfolio risk is immaterial.
ALCO oversees asset/liability management, using Simulation, , and .
Under a +200bps rate ramp, Year 1 changes -1.2% and Year 2 +3.8% as of June 30, 2026.
Under a -300bps rate ramp, Year 1 changes +5.1% and Year 2 -2.2% as of June 30, 2026.
The company is positioned relatively neutral to rate changes in the next year; deposit pricing assumptions are key.
Foreign currency risk is minimal; hedges like swaps and rate floors are used on a limited basis.
In the normal course of business, the Company and its subsidiaries are named defendants in various legal proceedings. In the opinion of management, after consultation with legal counsel, none of these lawsuits are expected to have a materially adverse effect on the financial pos…
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In the normal course of business, the Company and its subsidiaries are named defendants in various legal proceedings. In the opinion of management, after consultation with legal counsel, none of these lawsuits are expected to have a materially adverse effect on the financial position, results of operations, or cash flows of the Company.
There were no material changes to the risk factors as previously disclosed in response to Item 1A to Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, or in response to Item 1A to Part II of the Company's Quarterly Report on Form 10-…
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There were no material changes to the risk factors as previously disclosed in response to Item 1A to Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, or in response to Item 1A to Part II of the Company's Quarterly Report on Form 10-Q for the period ended June 30, 2026.