UMB Financial Q3 2025 Earnings Call Transcript

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Wednesday, October 29, 2025 astatine 9:30 a.m. ET

• Chairman & CEO — J. Kemper

• Chief Financial Officer — Ram Shankar

• Chief Credit Officer — Thomas Terry

• President & CEO, UMB Bank — James Rine

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J. Kemper: Thank you, Kay, and bully morning, everyone. We'll stock immoderate little comments astir our 3rd 4th results, past unfastened it up for questions. As you whitethorn person seen successful our caller release, I'm precise excited that we've reached the important milestone successful our acquisition of Heartland Financial aboriginal this October. We successfully completed the afloat systems and marque conversion of each HTLF locations. I'm incredibly arrogant of the teams that person been moving unneurotic astir the timepiece to marque the creaseless modulation for our clients arsenic good arsenic for our associates, each portion continuing to excel astatine their time jobs, which is evidenced by our beardown 3rd 4th results.

We saw a caller grounds for gross indebtedness production, beardown interest income, accordant recognition prime and continued affirmative operating leverage. Reported nett income disposable to communal shareholders of $180.4 cardinal included $35.6 cardinal of acquisition expenses compared to $13.5 cardinal successful the 2nd quarter. Excluding these and immoderate smaller nonrecurring items, our 3rd 4th nett operating income was $206.5 cardinal oregon $2.70 per share. Third 4th nett involvement income totaled $475 million, an summation of $8 cardinal oregon 1.7% from the 2nd quarter, driven chiefly by continued integrated maturation successful mean loans and earning assets, partially offset by the interaction of beardown maturation and higher outgo interest-bearing deposits from our organization businesses.

Fee income was strong, expanding 12.4% connected a linked-quarter basis, excluding the interaction of marketplace valuation changes connected our equity positions. Trust and securities processing income was positively impacted by coagulated contributions from firm trust, money services and backstage wealth. And successful concern banking, accrued enactment successful bureau and mortgage-backed trading drove astir a 14% summation from the 2nd quarter. Looking astatine the equilibrium sheet, we had coagulated increases connected some sides with 8% linked-quarter annualized maturation successful some mean loans and deposits. Quarterly apical enactment indebtedness accumulation surpassed $2 cardinal for the archetypal clip with beardown integrated maturation momentum supplemented by the continued occurrence from our acquired markets.

The complaint of payoffs fell somewhat to 3.6% and remains successful enactment with humanities trends. C&I was our strongest contributor for the 4th with much than 14% annualized maturation implicit the 2nd 4th mean balances. Additionally, arsenic I mentioned past quarter, we've begun offering owe products successful our caller regions successful the outpouring and person been encouraged by the aboriginal success, which has led to astir $20 cardinal successful closed loans. We proceed to spot a beardown pipeline. Looking up successful the 4th quarter, wide indebtedness enactment and pipeline remains strong, some successful bequest and HTLF markets. Our indebtedness maturation has continued to outpace our adjacent banks.