UMB Financial (UMBF) investor relations material

Executive summary

• Q3 GAAP net income was $278.1M; net income available to common shareholders was $272.3M, or $3.56 diluted EPS, up 51.0% YoY.

• Revenue rose 13.9% YoY to $772.4M; net interest income increased 13.7% and noninterest income rose 14.3%.

• Average loans grew 11.1% annualized linked quarter; core NII excluding purchase-accounting accretion rose 2.1% to $506.9M.

• Operating return on average tangible common equity was 19.51%; YTD positive operating leverage was 11.5%.

Financial highlights

• Net interest income was $540.0M; purchase accounting contributed $33.1M, including $9.0M of accelerated accretion from early HTLF loan payoffs.

• Noninterest income was $232.4M, up 14.3% YoY and down $13.1M QoQ; the linked-quarter decline reflected lower securities gains and company-owned life insurance income.

• Excluding securities gains, COLI mark-to-market and a $1.8M building-sale gain, fee income rose $8.2M, or 3.9%, QoQ; adjusted Q3 run-rate fee income was ~$218M.

• Noninterest expense was $399.5M, down 4.7% YoY and virtually flat QoQ; the quarter included $0.1M of acquisition-related and other nonrecurring costs.

• Revenue was down $5.6M QoQ, partly reflecting the prior quarter’s $17.9M gain on sale of a non-marketable security.

Outlook and guidance

• Q4 operating expense guidance is $400M–$405M, reflecting incentive accruals and technology project costs; the Q4 tax-rate outlook is 21%–22%.

• Q4 core NIM is expected to remain relatively flat versus 3.10%; loan production is expected to moderate from Q3’s record level toward Q1–Q2 levels.

• Q4 deposits are expected to grow, with visibility into institutional deposit growth in Q1; loan payoffs remain difficult to predict and may affect net growth.

• Contractual purchase-accounting accretion is projected at $23.0M in Q4’26, $74.5M in 2027 and $62.2M in 2028; projections assume no prepayments and are updated quarterly.

• Management plans to grow both sides of the balance sheet, maintain a consistent net interest spread, preserve asset quality and sustain fee-business momentum.