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1. Company Snapshot

1.a. Company Description

UMB Financial Corporation operates as the bank holding company for the UMB Bank that provides various banking and other financial services.The Commercial Banking segment provides commercial loans and credit card; commercial real estate financing; letters of credit; loan syndication, and consultative service; various business solutions including asset-based lending, accounts receivable financing, mezzanine debt, and minority equity investment; and treasury management service, such as depository service, account reconciliation, cash management tool, accounts payable and receivable solution, electronic fund transfer and automated payment, controlled disbursement, lockbox service, and remote deposit capture service.The Institutional Banking segment offers asset management and healthcare service provided to institutional client; and fund administration and accounting, investor service and transfer agency, marketing and distribution, custody, alternative investment service, fixed income sale, trading and underwriting, and corporate trust and escrow service, as well as institutional custody service.


This segment also provides healthcare payment solution includes custodial service for health saving accounts and private label, multipurpose debit cards to insurance carriers, third-party administrator, software companies, employers, and financial institutions.The Personal Banking segment offers deposit account, retail credit card, private banking, installment loan, home equity line of credit, residential mortgage, and small business loan, as well as internet banking, ATM network, private banking, brokerage and insurance service, and advisory and trust service.It operates through a network of branches and offices in the states of Missouri, Kansas, Colorado, Illinois, Oklahoma, Texas, Arizona, Nebraska, Iowa, Pennsylvania, South Dakota, Indiana, Utah, Minnesota, California, and Wisconsin.


The company was founded in 1913 and is headquartered in Kansas City, Missouri.

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1.b. Last Insights on UMBF

UMB Financial Corporation's recent performance was driven by strong Q3 earnings, beating estimates with $2.7 per share, up from $2.25 a year ago. The company's integration of Heartland Financial is nearing completion, delivering cost synergies and a strong deposit base. Robust credit quality, with well-reserved non-performing loans and net charge-offs below targets, also contributed positively. Analysts see a 26.43% upside in the stock, with a price target of $115. Additionally, institutional investors, including Brant Point Investment Management and Sequoia Financial Advisors, have increased their stakes in the company.

1.c. Company Highlights

2. UMB Financial's Strong Q4 2025 Earnings: A Closer Look

UMB Financial reported a robust fourth quarter 2025, with net income available for common shareholders reaching $209.5 million or $2.74 per share, representing a 16.1% increase from the third quarter. Excluding acquisition expenses related to the Heartland Financial acquisition, net operating income was $235.2 million or $3.08 per share, beating analyst estimates of $2.71. The company's net interest income was $522.5 million, up 10% from the third quarter, driven by double-digit growth in loans and demand deposit accounts (DDAs). The efficiency ratio improved to 55.5% from 58.1% in the third quarter, indicating better cost management.

Publication Date: Feb -08

📋 Highlights
  • Net Income Growth: Q4 net income surged 16.1% to $209.5M ($2.74/share) from Q3, with full-year earnings reaching $684.6M ($9.29/share).
  • Efficiency Ratio Improvement: Declined to 55.5% in Q4 (vs. 58.1% in Q3), reflecting better cost management despite $39.7M acquisition expenses.
  • Loan Growth Outperformance: Average loans grew 13% annualized year-over-year, driven by robust demand deposit account (DDA) expansion and high-quality credit demand.
  • Low Charge-Offs: Net charge-offs of 13 basis points in Q4 and 23 bps for 2025, below the historical average of 27 bps, signaling strong credit quality.
  • Capital Strength: Common equity Tier 1 ratio rose to 10.6% (26 bps increase from Q3), supporting resilience and capacity for growth.

Loan Growth and Credit Quality

The company's loan growth outpaced many peer banks, with a 13% linked quarter annualized growth in average loans. Total net charge-offs for the fourth quarter were 13 basis points, and for the full year 2025, net charge-offs were 23 basis points, below the long-term historical average of 27 basis points. This suggests that UMB Financial's credit quality remains strong, with a robust underwriting process in place.

Outlook and Guidance

For 2026, the company expects to continue its momentum, capitalizing on opportunities in newly acquired markets, with a primary focus on positive operating leverage. The company expects first-quarter operating expenses to be in the $385 million to $390 million range and an effective tax rate of 20-22% for 2026. Management is confident in its ability to generate organic growth, but remains open to tuck-in acquisitions and lift-outs in fee businesses.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 1.33, UMB Financial's valuation appears reasonable compared to its peers. The company's Dividend Yield stands at 1.21%, providing a relatively stable source of return for investors. Analysts estimate next year's revenue growth at 6.7%, which, combined with the company's historical performance, suggests a positive outlook for UMB Financial.

Key Drivers of Future Growth

The Heartland acquisition is expected to bring revenue synergies, particularly in fee income areas such as mortgage, credit card, and corporate trust. The company's trust and securities processing line showed significant growth, with a 12.8% year-over-year growth rate in Institutional Banking. With a strong track record of delivering on promises, UMB Financial's team is committed to continuing this trend, providing confidence in its future performance.

3. NewsRoom

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UMB Financial Corporation $UMBF Shares Bought by Envestnet Asset Management Inc.

Feb -14

Source: defenseworld.net

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UMBF vs. CBSH: Which Stock Is the Better Value Option?

Feb -13

Source: zacks.com

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UMB Financial Poised As A Mid-Cap Bank Growth Leader (Upgrade)

Feb -10

Source: seekingalpha.com

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Allianz Asset Management GmbH Has $7.09 Million Position in UMB Financial Corporation $UMBF

Feb -10

Source: defenseworld.net

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UMB Financial Corporation (UMBF) Soars to 52-Week High, Time to Cash Out?

Feb -05

Source: zacks.com

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Best Momentum Stocks to Buy for February 5th

Feb -05

Source:

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New Strong Buy Stocks for February 5th

Feb -05

Source:

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Best Value Stocks to Buy for February 5th

Feb -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Commercial Banking

Expected Growth: 4.77%

UMB Financial Corporation's Commercial Banking segment growth of 4.77% is driven by increased loan demand from small to medium-sized businesses, expansion of commercial real estate lending, and growth in treasury management services. Additionally, strategic investments in digital banking platforms and targeted hiring of experienced commercial bankers have contributed to the segment's growth.

Institutional Banking

Expected Growth: 6.47%

UMB Financial Corporation's Institutional Banking segment growth of 6.47% is driven by strong commercial loan growth, increased treasury management fees, and expansion of its asset-based lending business. Additionally, strategic acquisitions and investments in digital capabilities have enhanced the segment's competitiveness, contributing to its growth momentum.

Personal Banking

Expected Growth: 5.4%

UMB Financial Corporation's 5.4% growth in Personal Banking is driven by increasing demand for digital banking services, expansion of branch network, and strategic partnerships. Additionally, the corporation's focus on customer experience, competitive pricing, and innovative product offerings have contributed to the growth. Furthermore, the rising adoption of mobile banking and online banking platforms has also fueled the segment's growth.

7. Detailed Products

Commercial Banking

UMB Financial Corporation provides commercial banking services to businesses, including cash management, lending, and treasury management solutions.

Consumer Banking

UMB Financial Corporation offers consumer banking services, including checking and savings accounts, credit cards, and personal loans.

Institutional Banking

UMB Financial Corporation provides institutional banking services, including custody, investment management, and trust services.

Healthcare Services

UMB Financial Corporation offers healthcare services, including healthcare payment solutions and healthcare consulting.

Scout Investments

UMB Financial Corporation offers investment management services through Scout Investments, including equity and fixed income investment strategies.

UMB Fund Services

UMB Financial Corporation offers fund services, including mutual fund administration, accounting, and compliance services.

8. UMB Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for UMB Financial Corporation is medium due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of buyers and the presence of multiple financial institutions.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of financial services and technology.

Threat Of New Entrants

The threat of new entrants is high due to the low barriers to entry and the increasing trend of fintech companies.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple financial institutions and the increasing competition in the financial services industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.12%
Debt Cost 8.15%
Equity Weight 41.88%
Equity Cost 8.15%
WACC 8.15%
Leverage 138.78%

11. Quality Control: UMB Financial Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

126.85$

Current Price

126.85$

Potential

-0.00%

Expected Cash-Flows