UMB Bank reports 4% earnings growth

Kansas City-based UMB Financial Corp. on Tuesday reported a 4 percent increase in earnings per share in the third quarter.

Diluted earnings per share for the quarter were 53 cents, up 2 cents from the same quarter last year. Net income was $21.8 million, basically unchanged from $21.5 million in third-quarter 2007.

Net interest income increased 14.3 percent, average earning assets increased 11.1 percent, average loans increased 7.8 percent and total securities increased 15.7 percent. Net interest margin increased 9 basis points to 3.57 percent, due to a 163-basis-point reduction in the average cost of UMB's interest-bearing liabilities.

Average total assets at the end of the quarter were $8.6 billion, compared to $7.8 billion in the same quarter a year ago. Actual loan balances were $4.2 billion, up from $4 billion a year ago. Consumer loans continued to decline as a result of UMB's decision in August 2007 to exit the indirect lending business.

Company shares (Nasdaq: UMBF) closed Wednesday at $46.43, compared to a 52-week range of $34.95 to $69.60.