UMB Financial Corporation April 16 reported net income of $15.16 million for the quarter ending March 31, up from $14.96 million for the same quarter in 1997.
The 1998 figure represents earnings per share of 74 cents.
UMB reported a 6 percent increase in net interest income, which the company said was fueled by an 8 percent increase in its average loan volume. This higher net interest income was partially offset by an increase in provisions for loan losses.
"Even though the level of nonperforming loans and loans seriously past due has decreased significantly, the loss provision was increased as a result of an increase in consumer loan charge-offs," a UMB release said.
Nonperforming loans totaled $13 million (0.48 percent of total loans), compared to $23 million of nonperforming loans (0.88 percent of total loans) at the same time in 1997.
"We are maintaining a strong capital position, over 9 percent of total assets, which will allow us to take advantage of opportunities as they arise and protect against the unforeseen," said R. Crosby Kemper, chairman and CEO of UMB Financial Corporation.
"The loan portfolio is well-diversified and has a very low-risk profile. Our
sizable securities portfolio is prudent-ly invested and makes us one of the
few major commercial banks in the country with any real liquidity," Kemper added.
The company's noninterest income increased more than 14 percent in the quarter to $38.3 million. UMB said it continues to try to increase this area as a revenue source because it does not carry the credit and interest-rate risk of interest-based revenue.
"Double-digit growth was achieved in trust and securities processing income, trading income and in service charges and fees," the company release said.
"Staffing represents the company's most significant cost and accounts for the largest increase in total expenses," the release said.
"Staffing for the company's many growth initiatives, coupled with a tight labor market, has resulted in higher expense levels," the release said.
The Kansas City-based holding company has assets of $7 billion, with 16 banks under its umbrella. It has 155 banking offices in seven states.