UMB Financial Corp. earnings fall 20%

Kansas City-based UMB Financial Corp. showed a 20 percent decline in second-quarter profit, largely due to an increase in regulatory fees.

The bank earned $19 million, or 47 cents per share, during the quarter, down from $23.7 million, or 58 cents per share, in the same quarter last year. The decline was attributed to a $4.6 million increase in regulatory fees, which included a special premium assessment from the Federal Deposit Insurance Corp., an increase in the FDIC's routine quarterly assessments, and costs related to the Transaction Account Guarantee Program.

"These fees ... represent 86 percent of the decline in net income year-over-year," UMB Financial CEO and Chairman Mariner Kemper said in the earnings release. "It's unfortunate that banks like UMB that did not contribute to the financial crisis must share in this burden, but we understand our responsibility to the industry."

Kemper said the bank remains focused on factors it can control: investing in its fee business, maximizing efficiencies, growing loans and deposits, and managing its capital base.

Net interest income for the quarter was up 12.4 percent due largely to a higher volume of average earning assets. Noninterest income fell 2.1 percent, as trust and securities processing income declined. Noninterest expense grew 11.8 percent, partly due to increases in salaries and benefits and higher equipment costs.

Average total assets for the quarter were $10 billion, compared to $8.6 billion a year earlier. Actual loan balances were $4.3 billion, up from $4.1 billion in second-quarter 2008, and nonperforming loans were up $5.9 million at $14.1 million.

Shares (Nasdaq: UMBF) closed Monday at $41.61, compared to a 52-week range of $33.65 to $69.60.