UMB Financial net income falls 30%

UMB Financial Corp. had a first-quarter profit of $22.6 million, down 30 percent from the same period a year ago.

The Kansas City-based bank holding company reported earnings April 21 of 56 cents per share for the quarter, compared to 79 cents per share in the same period a year ago.

CEO and Chairman Mariner Kemper pointed to two external forces as reasons for the decline in earnings: continued volatility in the equity markets and a sustained low interest-rate environment causing pressure on net interest margin, according to the earnings release.

"In spite of all this, by focusing on the things we can control - growing our fee businesses, maximizing efficiencies, growing loans and deposits, managing our capital base and delivering the unparalleled customer experience - we are well positioned to ride out the storm," Kemper said in the release.

Total deposits increased 17.4 percent during the quarter, and total loans grew by $193 million to $4.3 billion. Net interest income was up 16.8 percent.

Nonperforming loans nearly tripled to $14.6 million, compared to $5.1 million in first-quarter 2008. They represented 0.34 percent of total loans.

UMB increased its allowance for loan losses to $54 million - or 1.24 percent of loans - from $47.5 million - or 1.15 percent of loans - a year ago.

Company shares (Nasdaq: UMBF) closed May 1 at $45.48, compared to a 52-week range of $33.65 to $69.60.[[In-content Ad]]