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Investing.com -- UMB Financial Corporation (NASDAQ:UMBF) reported mixed first quarter 2025 results, with earnings beating expectations but shares slipping 1.9% following the release.
The financial services company posted adjusted earnings per share of $2.58, surpassing the analyst estimate of $2.26. Revenue came in at $563.84 million, also topping the consensus forecast of $547.66 million.
Net interest income surged 66.1% year-over-year to $397.6 million, driven by the acquisition of Heartland Financial USA (NASDAQ:HTLF) and organic balance sheet growth. The net interest margin expanded 39 basis points from the previous quarter to 2.96%.
Average loans increased 38.3% compared to Q1 2024, reaching $32.3 billion. Average deposits rose 50% to $50.3 billion over the same period.
"2025 is off to an exciting start with strong first quarter financial results in addition to the completion of our acquisition of Heartland Financial in January," said Mariner Kemper (NYSE:KMPR), UMB Financial Corporation chairman and CEO.
The company recorded $53.2 million in acquisition-related and other nonrecurring costs during the quarter. Excluding these items, operating noninterest expense rose 37% year-over-year to $330.5 million.
UMB’s board declared a quarterly cash dividend of $0.40 per share and authorized the repurchase of up to 1 million shares.
Despite the earnings beat, shares dipped 1.9% in after-hours trading, suggesting investors may be focusing on integration costs and potential risks associated with the recent acquisition.
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