UMB Financial in Kansas City, Mo., reported higher fourth-quarter profit, thanks to loan growth tied to a recent acquisition.
The $19 billion-asset company earned $29.6 million in the fourth quarter, an increase of 10% from a year earlier. Earnings per share rose 1.7% to 60 cents, or two cents higher than an estimate of analysts polled by Bloomberg.
Profits were boosted, in part, by gains associated with the company's May acquisition of Marquette Financial.
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The company badly missed Wall Street estimates in the third quarter, prompting management to ramp up plans to cut costs. Mariner Kemper, in a wide-ranging interview, discussed those challenges while also addressing key changes among his executive ranks.
December 29 -
For years, UMB Financial rode fee-income gains from the expansion of its asset management unit to some strong quarters. But the unit's production has waned lately forcing the company to rethink its expense base and management structure.
November 11 -
UMB Financial in Kansas City, Mo., reported lower third-quarter profit, due to weaker revenue from its Scout Funds arm and merger costs.
October 28
Fee-based lines of business declined 2% to $112.6 million, mostly from lower trust and securities income. Revenue from Scout Funds — the company's asset-management unit — plunged 42%, by $7.9 million.
UMB
Net interest income after the provision for loan losses rose 24% to $109.5 million. Loan balances jumped 26% to $9.3 billion. The net interest margin expanded 24 basis points to 2.76%.
Noninterest expense climbed 9% to $182 million, from higher salary and severance-related costs.
