UMB Financial in Kansas City, Mo., posted solid quarterly results on loan growth and lower credit costs.
The $15.7 billion-asset company's first-quarter profit fell 25% from a year earlier, to $34.9 million, because of securities gains and a positive accounting adjustment recorded a year earlier. UMB's earnings per share of 88 cents were 22 cents higher than Bloomberg analysts' forecasts.
Noninterest income fell 9% from a year earlier, to $121 million, because of a 64% decrease in securities gains. Income from trust and securities processing, service charges and card fees all rose in the first quarter compared to a year earlier.
Net interest income rose by less than 1% from a year earlier. Total loans rose by 17% from a year earlier, to $6 billion, though the net interest margin compressed by 24 basis points, to 2.51%.
Nonperforming assets rose 7% from a year earlier, to $27.6 million. The loan-loss provision was $2 million in the first quarter, compared to $4.5 million a year earlier. Net chargeoffs rose 17% from the first quarter of 2012, to $3.5 million.
Noninterest expenses rose 6% from a year earlier, to $150.4 million, because of higher costs tied to salaries and benefits. UMB also recorded $3.3 million in expenses tied to the revaluation of acquisitions.
Also on Tuesday, UMB filed a registration statement allowing it to issue stock or debt, it said in its press release. The company said it has no plans to offer securities, though the registration gives it greater capital flexibility.