UMB posts 16 percent earnings increase

UMB Financial Corp. (Nasdaq: UMBF), the holding company for UMB Bank, posted first-quarter earnings of $26.2 million, according to the company's earnings report released Tuesday.

The quarterly earnings equate to 65 cents per diluted share, up 15.9 percent from the $22.6 million or 55 cents per share posted in first-quarter 2009.

Net interest income for the quarter was flat compared to last year, totaling $75.8 million. Noninterest income totaled $86.4 million, a 25.4 percent increase from the year before. Much of the increase in noninterest income came from a $10.7 million increase in trust and securities income, due to both a $6.5 million jump in fund administration and custody service fees and a $3.8 million increase in advisory fee income.

The bank's nonperforming loan totals increased as well, to $25.4 million from $14.6 million a year earlier. Nonperforming loans make up 0.59 percent of total loans, up from 0.34 percent a year earlier but well below the industry average of 5.3 percent.

"Our results were driven primarily by the execution on our diversified financial services strategy," Chairman and CEO Mariner Kemper said in the earnings release. "Noninterest income for the quarter was solid, reflecting our recent acquisitions and the strong equity markets. However ... although we see signs of an improving economy, continued high unemployment coupled with other uncertainties will likely make a full recovery in the short run more difficult."

Shares of UMB Financial Corp. closed Monday at $43, compared to a 52-week range of $36.34–$48.46. Shares were trading up at $43.21 as of 10 a.m. Tuesday.