- 5 High-Efficiency Stocks to Buy Now: HCSG, ELMD, UMBF, SHEL, MTSI
May 15, 2026
The efficiency ratio serves as a vital indicator of a company's overall financial health by measuring how effectively its internal operations are being managed. Specifically, it quantifies how optimally the business deploys its assets and handles its liabilities to maximize revenues and minimize unnecessary expenses.
However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider the popular efficiency ratios listed below while selecting stocks.
Healthcare Services Group HCSG, Electromed ELMD, UMB Financial UMBF, Shell SHEL and MACOM Technology Solutions MTSI have made it through the screen process:
Efficiency Ratios – to be Considered
Receivables Turnover: This is the ratio of 12-month sales to four-quarter average receivables. It shows a company’s potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio, or the “accounts receivable turnover ratio” or “debtor’s turnover ratio,” is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.
Asset Utilization: This ratio indicates a company’s capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.
Inventory Turnover: The ratio of the 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company’s ability to maintain a suitable inventory position. While a high value indicates that the company has a relatively low level of inventory compared to COGS, a low value indicates that the company is facing declining sales, which has resulted in excess inventory.
Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company’s ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers.
Screening Criteria Using Research Wizard:
In addition to the above-mentioned ratios, we have added a favorable Zacks Rank — Zacks Rank #1 (Strong Buy) — to the screen to make this strategy more profitable. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Inventory Turnover, Receivables Turnover, Asset Utilization, and Operating Margin greater than the industry average
(Values of these ratios higher than industry averages may indicate that the efficiency level of the company is higher than its peers.)
The use of these few criteria narrowed down the universe of over 7,906 stocks to 14.
Here are the top five stocks that made it through the screen:
Healthcare Services Group
Indivior Pharmaceuticals Group provides housekeeping, laundry, linen, facility maintenance and food services to the healthcare industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals. HCSG has an average four-quarter earnings surprise of 43.50%.
Electromed
Electromed manufactures, markets and sells products that provide airway clearance therapy to patients with compromised pulmonary function. ELMD has an average four-quarter earnings surprise of 20.1%.
UMB Financial
UMB Financial provides banking services and asset servicing in the United States. UMBF has an average four-quarter earnings surprise of 17.4%.
Shell
Shell is an energy and petrochemical company, operating in Europe, Asia, Oceania, Africa, the United States, and other parts of the Americas. SHEL has an average four-quarter earnings surprise of 14.5%.
MACOM Technology Solutions
MACOM Technology Solutionsis a provider of power analog semiconductor solutions to varied markets. MTSI has an average four-quarter earnings surprise of 1.8%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Electromed, Inc. (ELMD) : Free Stock Analysis Report
UMB Financial Corporation (UMBF) : Free Stock Analysis Report
MACOM Technology Solutions Holdings, Inc. (MTSI) : Free Stock Analysis Report
Healthcare Services Group, Inc. (HCSG) : Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- 5 High-Efficiency Stocks to Buy Now: HCSG, ELMD, UMBF, SHEL, MTSI
May 15, 2026 · zacks.com
HCSG, ELMD, UMBF, SHEL and MTSI passed an efficiency screen based on turnover ratios, asset use and operating margin strength.
- Q1 Rundown: FB Financial (NYSE:FBK) Vs Other Regional Banks Stocks
May 14, 2026
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, including FB Financial (NYSE:FBK) and its peers.
Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.
The 92 regional banks stocks we track reported a slower Q1. As a group, revenues were in line with analysts’ consensus estimates.
While some regional banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.9% since the latest earnings results.
FB Financial (NYSE:FBK)
Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE:FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.
FB Financial reported revenues of $172.7 million, up 30.8% year on year. This print fell short of analysts’ expectations by 1.7%. Overall, it was a softer quarter for the company with a miss of analysts’ revenue and net interest income estimates.
President and Chief Executive Officer, Christopher T. Holmes stated, “We began the year with a recognition that speaks directly to who we are, being named the top bank for customer satisfaction and trust in the South Central Region by J.D. Power. That honor reinforces our customer-focused model and validates a cornerstone of how we measure success. We also delivered solid financial results in the quarter, with strong returns and loan and deposit growth that gained momentum in the back half of the period. When you have the highest level of endorsement from your customers about their satisfaction and you combine that with top-tier financial performance and one of the best geographies in the country, we believe we have a very compelling formula for creating value for our shareholders today and over the long term.”FB Financial Total Revenue
The stock is down 5.7% since reporting and currently trades at $52.79.
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Read our full report on FB Financial here, it’s free.
Best Q1: UMB Financial (NASDAQ:UMBF)
With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ:UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.
UMB Financial reported revenues of $744.8 million, up 29.3% year on year, outperforming analysts’ expectations by 5.4%. The business had an exceptional quarter with a beat of analysts’ EPS and net interest income estimates.UMB Financial Total Revenue
UMB Financial scored the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.9% since reporting. It currently trades at $130.29.
Is now the time to buy UMB Financial? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: BankUnited (NYSE:BKU)
Born from the ashes of a failed Florida thrift during the 2009 financial crisis, BankUnited (NYSE:BKU) is a regional bank that provides commercial lending, deposit services, and treasury solutions to businesses and consumers primarily in Florida and the New York metropolitan area.
BankUnited reported revenues of $273.8 million, up 6.1% year on year, falling short of analysts’ expectations by 5.1%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.
The stock is flat since the results and currently trades at $46.37.
Read our full analysis of BankUnited’s results here.
Peoples Bancorp (NASDAQ:PEBO)
Founded in 1902 in Ohio and expanding through both organic growth and acquisitions, Peoples Bancorp (NASDAQ:PEBO) is a financial holding company that provides banking, insurance, equipment leasing, and investment services to consumers and businesses.
Peoples Bancorp reported revenues of $119.3 million, up 5.6% year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced a narrow beat of analysts’ net interest income estimates but a slight miss of analysts’ tangible book value per share estimates.
The stock is down 2.9% since reporting and currently trades at $33.72.
Read our full, actionable report on Peoples Bancorp here, it’s free.
The Bancorp (NASDAQ:TBBK)
Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ:TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.
The Bancorp reported revenues of $161.4 million, down 8% year on year. This print came in 17.4% below analysts' expectations. It was a softer quarter as it also logged a significant miss of analysts’ revenue and net interest income estimates.
The Bancorp had the weakest performance against analyst estimates among its peers. The stock is down 8.8% since reporting and currently trades at $55.12.
Read our full, actionable report on The Bancorp here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.
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- Spotting Winners: Nicolet Bankshares (NYSE:NIC) And Regional Banks Stocks In Q4
May 14, 2026
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the regional banks stocks, including Nicolet Bankshares (NYSE:NIC) and its peers.
Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.
The 97 regional banks stocks we track reported a slower Q4. As a group, revenues were in line with analysts’ consensus estimates.
While some regional banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.9% since the latest earnings results.
Nicolet Bankshares (NYSE:NIC)
Starting as Green Bay Financial Corporation in 2000 before rebranding in 2002, Nicolet Bankshares (NYSE:NIC) is a regional bank holding company that provides commercial, agricultural, and consumer banking services primarily in Wisconsin, Michigan, and Minnesota.
Nicolet Bankshares reported revenues of $104.4 million, up 12.4% year on year. This print exceeded analysts’ expectations by 3.2%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ revenue estimates and a decent beat of analysts’ net interest income estimates.Nicolet Bankshares Total Revenue
Unsurprisingly, the stock is down 6.9% since reporting and currently trades at $144.17.
We think Nicolet Bankshares is a good business, but is it a buy today? Read our full report here, it’s free.
Best Q4: UMB Financial (NASDAQ:UMBF)
With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ:UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.
UMB Financial reported revenues of $744.8 million, up 29.3% year on year, outperforming analysts’ expectations by 5.4%. The business had an exceptional quarter with a beat of analysts’ EPS and net interest income estimates.UMB Financial Total Revenue
UMB Financial pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.9% since reporting. It currently trades at $130.29.
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Is now the time to buy UMB Financial? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: BankUnited (NYSE:BKU)
Born from the ashes of a failed Florida thrift during the 2009 financial crisis, BankUnited (NYSE:BKU) is a regional bank that provides commercial lending, deposit services, and treasury solutions to businesses and consumers primarily in Florida and the New York metropolitan area.
BankUnited reported revenues of $273.8 million, up 6.1% year on year, falling short of analysts’ expectations by 5.1%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.
The stock is flat since the results and currently trades at $46.37.
Read our full analysis of BankUnited’s results here.
Stellar Bancorp (NYSE:STEL)
Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp (NYSE:STEL) is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.
Stellar Bancorp reported revenues of $111.2 million, up 6% year on year. This print beat analysts’ expectations by 2.5%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.
The stock is down 1.2% since reporting and currently trades at $37.14.
Read our full, actionable report on Stellar Bancorp here, it’s free.
Lake City Bank (NASDAQ:LKFN)
Dating back to 1872 and deeply rooted in Indiana's communities, Lakeland Financial Corporation (NASDAQ:LKFN) operates Lake City Bank, providing commercial and consumer banking services throughout Northern and Central Indiana.
Lake City Bank reported revenues of $70.81 million, up 9.1% year on year. This number topped analysts’ expectations by 0.9%. Aside from that, it was a slower quarter as it logged a miss of analysts’ net interest income estimates and a miss of analysts’ tangible book value per share estimates.
The stock is flat since reporting and currently trades at $60.12.
Read our full, actionable report on Lake City Bank here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.
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- Is UMB Financial Corporation (UMBF) A Good Stock To Buy Now?
May 13, 2026
Is UMBF a good stock to buy? We came across a bullish thesis on UMB Financial Corporation on Valueinvestorsclub.com by johny88. In this article, we will summarize the bulls’ thesis on UMBF. UMB Financial Corporation's share was trading at $129.24 as of May 1st. UMBF’s trailing and forward P/E were 11.31 and 10.48 respectively according to Yahoo Finance.People Believe Intuit Inc. (INTU)'s Model Isn't Working, Says Jim Cramer
lOvE lOvE/Shutterstock.com
UMB Financial is a high-quality mid-cap bank that has compounded steadily through cycles, supported by conservative underwriting, strong liquidity, and a differentiated institutional trust and servicing platform. Over the past two decades, it has delivered roughly high-single-digit EPS and tangible book value growth, reflecting durable franchise quality.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
The business is split between commercial banking and a large fee-driven institutional platform, which provides sticky, recurring revenues and improves earnings resilience relative to traditional regional banks. Recent years have seen operating EPS grow at a mid-teens CAGR, driven by loan expansion, operating leverage, and the transformative HTLF acquisition, which added meaningful deposits, branches, and enhanced funding granularity.
While GAAP earnings were temporarily depressed by acquisition-related costs, operating return on tangible common equity is near the high teens, indicating strong underlying profitability that is obscured by headline metrics. The market currently values UMB Financial at around 10x forward earnings, a level typical of lower-quality lenders, despite its superior fee mix, credit consistency, and long-term compounding record.
The HTLF integration strengthens the deposit base, improves loan-to-deposit capacity, and supports higher long-term returns. As GAAP results converge toward operating performance, the stock has potential for both earnings multiple expansion and sustained mid-teens intrinsic value compounding.
With conservative credit metrics, sub-peer charge-offs, and a diversified institutional fee engine, downside risk remains limited even in weaker macro scenarios. Overall, UMB Financial offers an attractive risk-reward, combining durable earnings growth, improving return metrics, and a clear re-rating catalyst as market perception aligns with economic reality over the long-term.
Previously, we covered a bullish thesis on JPMorgan Chase & Co. (JPM) by Pacific Northwest Edge in March 2025, which highlighted systemic dominance, deposit strength and capital returns. JPM's stock price has appreciated by approximately 30.68% since our coverage. johny88 shares a similar view but emphasizes UMB Financial Corporation (UMBF)'s institutional fee mix, HTLF-driven funding and mid-cap compounding.
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UMB Financial Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held UMBF at the end of the fourth quarter which was 23 in the previous quarter. While we acknowledge the risk and potential of UMBF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UMBF and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
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- Spotting Winners: The Bancorp (NASDAQ:TBBK) And Regional Banks Stocks In Q1
May 11, 2026
Wrapping up Q1 earnings, we look at the numbers and key takeaways for the regional banks stocks, including The Bancorp (NASDAQ:TBBK) and its peers.
Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.
The 92 regional banks stocks we track reported a slower Q1. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
The Bancorp (NASDAQ:TBBK)
Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ:TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.
The Bancorp reported revenues of $161.4 million, down 8% year on year. This print fell short of analysts’ expectations by 17.4%. Overall, it was a softer quarter for the company with a significant miss of analysts’ revenue and net interest income estimates.The Bancorp Total Revenue
The Bancorp delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 1.7% since reporting and currently trades at $59.47.
Is now the time to buy The Bancorp? Access our full analysis of the earnings results here, it’s free.
Best Q1: UMB Financial (NASDAQ:UMBF)
With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ:UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.
UMB Financial reported revenues of $744.8 million, up 29.3% year on year, outperforming analysts’ expectations by 5.4%. The business had an exceptional quarter with a beat of analysts’ EPS and net interest income estimates.UMB Financial Total Revenue
UMB Financial delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4.7% since reporting. It currently trades at $131.23.
Story Continues
Is now the time to buy UMB Financial? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: BankUnited (NYSE:BKU)
Born from the ashes of a failed Florida thrift during the 2009 financial crisis, BankUnited (NYSE:BKU) is a regional bank that provides commercial lending, deposit services, and treasury solutions to businesses and consumers primarily in Florida and the New York metropolitan area.
BankUnited reported revenues of $273.8 million, up 6.1% year on year, falling short of analysts’ expectations by 5.1%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.
Interestingly, the stock is up 1.1% since the results and currently trades at $47.29.
Read our full analysis of BankUnited’s results here.
Glacier Bancorp (NYSE:GBCI)
Operating through seventeen distinct bank divisions with local brands and management teams, Glacier Bancorp (NYSE:GBCI) is a bank holding company that provides various banking services to individuals and businesses across eight western states.
Glacier Bancorp reported revenues of $308.8 million, up 37.6% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged tangible book value per share in line with analysts’ estimates but a slight miss of analysts’ net interest income estimates.
The stock is down 1.2% since reporting and currently trades at $48.79.
Read our full, actionable report on Glacier Bancorp here, it’s free.
Columbia Banking System (NASDAQ:COLB)
Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System (NASDAQ:COLB) operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.
Columbia Banking System reported revenues of $677 million, up 40.2% year on year. This number met analysts’ expectations. Aside from that, it was a mixed quarter as it also produced revenue in line with analysts’ estimates but a slight miss of analysts’ tangible book value per share estimates.
The stock is flat since reporting and currently trades at $29.56.
Read our full, actionable report on Columbia Banking System here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.
View Comments
- UMB Institutional Custody Business Grows to $250 Billion Assets Under Custody
May 11, 2026
KANSAS CITY, Mo., May 11, 2026--(BUSINESS WIRE)--UMB Bank announced today strong annual growth in its Institutional Custody business. As of March 31, 2026, the company held $250 billion in assets under custody, a 19% year-over-year increase from the same period in 2025, and a 298% increase since custody became a standalone business in 2019.
Led by Executive Vice President, Executive Director of Institutional Custody Amy Small, UMB’s Institutional Custody division serves fund managers, municipalities, insurance providers, and other institutional clients.
Key growth drivers include:
Strong client growth in municipal government and insurance sectors Increasing popularity of private funds and semi-liquid funds Need for liquidity solutions among asset managers, including reverse repo and, in collaboration with UMB’s commercial bank, lines of credit
Many municipal governments and asset managers are now managing more complex investment portfolios than in past years and need additional middle-office services such as risk monitoring, collateral management, and treasury/liquidity support functions. This is clearly demonstrated by the significant growth UMB has experienced in this area.
"In addition to size, increased complexity is driving the need for specialized services for government and other political subdivisions," Small said. "We’ve seen a similar evolution of business needs among insurance companies, where middle-office services often focus on non-traditional asset servicing for alternative investments, foreign exchange capabilities, regulatory reporting, securities lending, and collateral management."
Most recently, the City of Fort Worth selected UMB to provide custodial services for their multi-billion-dollar operations. This work expands UMB’s growing presence in Texas, which also includes commercial banking, private wealth management and retail banking.
"The City of Fort Worth manages a large and increasingly complex investment portfolio, and having a strong custodial partner is essential to maintaining effective oversight, liquidity, and operational efficiency," said Alex Laufer, City of Fort Worth assistant director of finance, city treasurer. "UMB’s capabilities will help strengthen our operational infrastructure, enhance risk management, and support the City’s long-term financial stewardship as our needs continue to evolve."
UMB’s business has also grown as asset managers seek specialized support for private and semi-liquid funds. For these complex assets, robust middle-office services are crucial to an asset manager's operational efficiency. Some conversions from other custodians have involved bringing hundreds of funds and their corresponding demand deposit accounts (DDAs).
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"Until 2018, UMB’s custody function was an add-on service for clients of UMB Fund Services, which is a national leader in registered and alternative investment fund administration services," said Small. "Now, we collaborate closely with our fund accounting and administration colleagues for fund custody, while also serving custody-specific businesses across multiple market segments, including insurance, government, pensions, and other private sectors."
Finally, liquidity solutions among asset managers continue to have high demand as asset managers navigate volatile markets—a trend that is driving growth for UMB’s custody and commercial teams. UMB offers both reverse repo and line of credit liquidity options for insurance companies, asset managers and other institutions that have custody assets with UMB. Notably, UMB offers committed reverse repo facilities in addition to the more common uncommitted facilities.
These complementary services recently resulted in UMB attracting a major, third-party provider of liquidity solutions to asset managers. In October 2025, ReFlow Fund, LLC (ReFlow) initiated both custody services and credit facilities with UMB. ReFlow aims to help mutual fund managers reduce the cost of redemptions—or shareholder flows—to other investors in a fund.
"UMB has been nothing short of amazing to work with," said Evan Smith of ReFlow Services, LLC. "Their ability to customize and automate custody solutions as well as integrate in-house credit facilities in a seamless way have been integral to us expanding our business."
As Institutional Custody has grown as a standalone business segment within UMB, the team has broadened its offerings and enhanced its technology, including:
Developed enhanced straight through processing capabilities Launched in-house foreign exchange services Introduced self-service options for client convenience Added collective investment trustee services Expanded directed trustee role for insurance and pension clients Broadened ETF full-service capabilities Implemented FDIC sweeps for overnight cash balances Integrated custody and treasury platforms
"As the industry landscape and business needs continue to evolve, we are extremely focused on being proactive and mindful of what this means for our clients and how we can strategically serve and advise," Small said. "While we excel at completing the work we know and have today, we’re equally intent on ensuring we understand and plan for how we serve our clients’ future needs as well. We expect this, along with our continued focus on evolving with the industry and delivering best-in-class services and expertise, to continue to drive our business success now and in the future."
About UMB:
UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending, investment and retirement plan services; personal banking, which includes comprehensive deposit, lending, wealth management and financial planning services; and institutional banking, which includes asset servicing, corporate trust solutions, investment banking and healthcare services. UMB operates branches throughout Missouri, Arizona, California, Colorado, Iowa, Kansas, Illinois, Minnesota, Nebraska, New Mexico, Oklahoma, Texas, Utah and Wisconsin. As the company’s reach continues to grow, it also serves business clients nationwide and institutional clients in several countries. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260511851989/en/
Contacts
Media Contact
Stephanie Hollander
Stephanie.Hollander@umb.com
816.729.1027
Company Contact Details
UMB Financial Corporation
1010 Grand Boulevard
Kansas City, MO 64106
816.860.7000
umb.com
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- UMB Institutional Custody Business Grows to $250 Billion Assets Under Custody
May 11, 2026 · businesswire.com
KANSAS CITY, Mo.--(BUSINESS WIRE)--UMB Bank announced strong annual growth in its Institutional Custody business with $250 billion in assets under custody as of March 31, 2026,.
- UMB INSTITUTIONAL CUSTODY BUSINESS GROWS TO $250 BILLION ASSETS UNDER CUSTODY
May 11, 2026
KANSAS CITY, MO.--(BUSINESS WIRE)--UMB BANK ANNOUNCED STRONG ANNUAL GROWTH IN ITS INSTITUTIONAL CUSTODY BUSINESS WITH $250 BILLION IN ASSETS UNDER CUSTODY AS OF MARCH 31, 2026,.
- How Strong Q1 Earnings and New Capital Moves Could Impact UMB Financial (UMBF) Investors
May 10, 2026
In late April 2026, UMB Financial reported first‑quarter results showing higher net interest income of US$534.37 million and net income of US$261.44 million year over year, while also announcing a new share repurchase program of up to 2,000,000 common shares and maintaining its common and preferred dividends. Alongside these financial updates, UMB Financial filed a US$372.66 million shelf registration for 3,000,000 common shares tied to its ESOP, underscoring its focus on employee ownership even as it returns capital through buybacks and dividends. We’ll now examine how the strong quarterly earnings, especially the higher net income, may reshape UMB Financial’s existing investment narrative.
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UMB Financial Investment Narrative Recap
To own UMB Financial, you need to believe it can convert the Heartland acquisition and its enlarged footprint into durable earnings while keeping credit quality and costs in check. The strong first quarter, with higher net interest income and net income, reinforces that thesis but does not materially change the near term focus on Heartland integration as the key catalyst and the efficiency of the enlarged branch network as a central risk.
Among the recent announcements, the new authorization to repurchase up to 2,000,000 common shares stands out, because it sits alongside higher earnings and maintained dividends and directly affects how shareholders participate in any improvement from the Heartland cost savings and earnings trajectory.
Yet behind the upbeat quarter and fresh buyback, investors should still be aware of how exposed UMB remains to regional economic conditions and branch efficiency...
Read the full narrative on UMB Financial (it's free!)
UMB Financial's narrative projects $3.3 billion revenue and $1.2 billion earnings by 2029.
Uncover how UMB Financial's forecasts yield a $142.83 fair value, a 9% upside to its current price.
Exploring Other PerspectivesUMBF 1-Year Stock Price Chart
Three members of the Simply Wall St Community value UMB Financial between US$69.60 and US$222.51 per share, highlighting very different expectations. When you compare that spread with the current emphasis on Heartland integration as a key earnings catalyst, it underlines how much room there is for you to explore alternative views on how effectively those cost savings and growth plans might translate into future performance.
Explore 3 other fair value estimates on UMB Financial - why the stock might be worth as much as 70% more than the current price!
Story Continues
The Verdict Is Yours
Don't just follow the ticker - dig into the data and build a conviction that's truly your own.
A great starting point for your UMB Financial research is our analysis highlighting 3 key rewards that could impact your investment decision. Our free UMB Financial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate UMB Financial's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include UMBF.
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