UMBF

Recent Earnings Performance: UMB Financial reported third-quarter 2025 operating earnings per share of $2.70, exceeding estimates and showing a 64.5% increase in net income year-over-year, driven by organic growth and the acquisition of Heartland Financial.

Revenue and Income Growth: Quarterly revenues surged 66.4% year-over-year to $686.7 million, with net interest income rising 90.3%, although non-interest expenses also increased significantly due to acquisition-related costs.

Asset Quality and Expenses: The company faced challenges with deteriorating asset quality, as indicated by a rise in non-accrual loans and an increase in the provision for credit losses, while operating expenses were projected to be between $375-$380 million.

Market Outlook and Stock Performance: UMB Financial holds a Zacks Rank #3 (Hold) with upward trending estimates, indicating a stable outlook, while the stock has gained 3.1% over the past month, outperforming the S&P 500.

Recent Performance: UMB Financial (UMBF) has experienced mixed performance, with a recent 4.3% increase in share price but a 2.3% decline over the past month; however, it boasts strong long-term returns of 34% over three years and nearly 68% over five years.

Valuation Insights: Analysts suggest UMB Financial's fair value is $137.69 per share, indicating it may be undervalued at its current price of $108.83, potentially overlooking future growth opportunities.

Acquisition Impact: The integration of Heartland (HTLF) is expected to yield significant cost savings of $124 million by early 2026, which could enhance operating leverage and net margins for UMB Financial.

Market Considerations: UMB Financial's earnings ratio is currently higher than industry averages, suggesting potential value if market sentiment improves, but risks such as slowing growth in the Midwest and integration challenges could limit upside potential.