Kansas City-based UMB Financial Corp. (Nasdaq: UMBF) recorded net income of $23.4 million in the first quarter, representing a 33 percent drop from earnings of $34.9 million in the same quarter a year earlier.
The holding company, which operates two UMB Bank branches in Springfield, posted diluted share earnings of 52 cents for the first quarter, down from 87-cent earnings in the corresponding quarter of 2013, according to a news release.
UMB Chairman and CEO Mariner Kemper said there are four key points to understanding the company's first-quarter net income.
"First, we established a $15 million contingency reserve based on the probability we will resolve objections to our calculation of an earn-out amount owed to the sellers of Prairie Capital Management, and a related incentive bonus calculation," he said in the release. "Second, we recognized a contingent consideration liability adjustment for acquisitions of $4.5 million in expense compared to $3.3 million in expense for the first quarter a year ago.
"Third, we recognized $1.5 million in gains on the sale of securities available for sale this quarter compared to $5.9 million in the first quarter 2013," he added. "And finally, we had an unrealized gain of $2.5 million on Prairie Capital Management investments in the first quarter 2014. Since we acquired it in 2010, Prairie Capital has been a high-performing business unit, one that is important to our long-term strategies as a diversified financial holding company.”
First-quarter financial notes:
- The company's assets under management increased 21.3 percent to $43.1 billion compared to first-quarter 2013.
- Average loans rose 14.9 percent $6.7 billion for the three months ended March 31. Net loans at the end of the quarter showed improvement, at $6.8 billion.
- Nonperforming loans decreased to 0.45 percent of loans as of March 31.
As of March 31, the company's assets were $15.9 billion and deposits were $12.3 billion, according to the release.
UMBF shares were trading at $60.82 as of 9:43 a.m., compared to a 52-week range of $47.05 to $68.27.[[In-content Ad]]
