UMB Bank reports 32% profit growth

While profits continue to slide at other banks, Kansas City-based UMB Financial Corp. posted 32 percent growth in both the fourth quarter and 2008.

The bank had $20.2 million in fourth-quarter net income, or 50 cents per share. That's up 32 percent from $15.3 million, or 37 cents per share, in fourth-quarter 2007.

Net income also was up 32 percent for the year at $98.1 million, or $2.41 per share, compared to $74.2 million, or $1.78 per share, in 2007.

The bank's profit was boosted largely by the sale of its security transfer product and transactions related to Visa's litigation and initial public offering. The two items together added $2.5 million during the quarter and $7.3 million for the year.

"While this economic environment has been challenging for the industry, we've continued to grow our loan portfolio by sticking to our core lending principles - lend to customers we know, lend in our territory and originate our own loans," Chairman and CEO Mariner Kemper said in a news release. "Our record loan balances of $4.4 billion as of Dec. 31, 2008, are proof that this strategy is paying off, while our nonperforming loans are only 0.2 percent of total loans."

Shares (Nasdaq: UMBF) closed Monday at $36.84 and were trading up at $37.37 at 11:30 a.m. The 52-week range is $35.75 to $69.60.