Highlights

  • UMB Financial shows 37.29% basic EPS growth, a P/E of 11.30 and PEG of -2.30.
  • Third quarter net income available to common shareholders was $272.3 million, or $3.56 diluted.
  • Net interest income was $540.0 million, up 13.7%; net interest margin was 3.32%.
  • The common equity Tier 1 ratio was 11.50%; UMB redeemed $150.0 million of subordinated notes.

UMB Financial (NASDAQ:UMBF) reported third quarter 2026 net income available to common shareholders of $272.3 million, and the undervalued growth stock figures read 37.29% one-year growth in basic earnings per share, a trailing twelve-month P/E of 11.30 and an expected-basis PEG of -2.30, with shares trading at USD 132.23 on October 28, 2026, down 1.17%. Alongside those figures, the Kansas City financial services company redeemed its $150.0 million of 2.75% subordinated notes due 2031 in mid-September, declared a quarterly common dividend of $0.50 per share on October 27, and discussed on its October 28 call a planned acquisition of Eldorado Savings Bank.

Headquartered in Kansas City, Missouri, and incorporated in Missouri, UMB Financial describes itself as a financial services company. It offers commercial banking, personal banking and institutional banking, which includes asset servicing, corporate trust, investment banking and healthcare services. UMB operates branches throughout Missouri, Arizona, California, Colorado, Iowa, Kansas, Illinois and several other states. Results since January 31, 2025 include the operations of Heartland Financial USA, Inc., which the company acquired on that date.

Growth: Third Quarter Earnings, Revenue and Loans

Net income available to common shareholders was $272.3 million in the third quarter against $180.4 million a year earlier, an increase of 51.0%. Basic earnings per share were $3.58 against $2.38, and diluted earnings per share were $3.56 against $2.36. Net operating income available to common shareholders, a non-GAAP measure, was $272.4 million, up 31.9%.

Revenue was $772.4 million, up 13.9%. Net interest income was $540.0 million, up 13.7%, and the net interest margin on a fully taxable equivalent basis was 3.32%, up 28 basis points. Noninterest income rose 14.3% to $232.4 million.

Average loans were $41.7 billion, up $4.6 billion, or 12.4%, from the third quarter of 2025. Total gross loan production was $3.1 billion against $2.6 billion in the linked quarter.

Valuation: P/E of 11.30, PEG of -2.30 and Returns

The P/E ratio of 11.30 is measured on trailing twelve-month earnings, and the PEG ratio of -2.30 is stated on an expected basis. Return on average assets was 1.53% and return on average common equity was 13.83% for the quarter. Book value per common share was $99.75 at September 30, 2026 against $94.29 a year earlier, and tangible book value per common share, a non-GAAP measure, was $70.07 against $63.40.

Chairman and Chief Executive Officer Mariner Kemper said the company believes its interest-rate-neutral balance sheet and diversified financial services model position it to navigate the anticipated environment.

Capital Ratios, Dividends and Debt

The common equity Tier 1 capital ratio was 11.50% against 10.70% a year earlier, the Tier 1 risk-based capital ratio was 12.04%, the total risk-based capital ratio was 13.52% and the Tier 1 leverage ratio was 9.41%. The ratios exceeded all well-capitalized thresholds.

In mid-September 2026 the company redeemed the $150.0 million of outstanding 2.75% fixed-to-floating rate subordinated notes due 2031. The board declared a quarterly common dividend of $0.50 per share payable January 4, 2027 to shareholders as of December 10, 2026, and a Series B preferred dividend of $193.75 per share payable January 15, 2027.

Disclosed Risks and Fourth Quarter Outlook

Kemper said persistent inflation, the conflict in the Middle East and higher short- and long-term interest rates may create headwinds. Noninterest income decreased $13.1 million, or 5.3%, from the linked quarter, largely on a $16.1 million net decrease in investment securities gains. Operating pre-tax, pre-provision income, a non-GAAP measure, decreased 1.8% on a linked-quarter basis. Average noninterest-bearing demand deposits declined 6.1% from the linked quarter.

Provision for credit losses was $31,000 thousand against $22,500 thousand a year earlier. Net charge-offs were $14.0 million, equal to 13 basis points of average loans, and nonperforming loans were $117.9 million, or 28 basis points of total loans, against 31 basis points at June 30, 2026.

On the third quarter call, management said it expects fourth quarter operating expense of $404 million to $405 million, a fourth quarter tax rate of 21% to 22% and a fourth quarter core margin relatively flat to the third quarter. It said gross loan production is likely to moderate from third quarter levels. The planned Eldorado Savings Bank acquisition is expected to close in the first quarter of 2027, subject to Eldorado shareholder approval and customary regulatory approvals, and to be modestly accretive to 2027 earnings.