UMB Financial in Kansas City, Mo., on Tuesday reported higher than expected quarterly profits due to loan growth from a recent acquisition.
The $19.7 billion-asset company earned $37.2 million in the second quarter, or 23% more than a year earlier. Earnings per share were 80 cents, or 6 cents higher than an estimate of analysts polled by Bloomberg.
The results were skewed by UMB's acquisition of the $1.2 billion-asset Marquette Financial, which closed in May 2015. The deal bolstered the company's commercial real estate and asset-based lending books in particular.
Overall, loans increased 13% to $10.1 billion. Net interest income rose 24% to $121 million due in part to higher-yielding loans from the Marquette deal. The net interest margin expanded 27 basis points to 2.86%.
Asset growth helped overshadow relatively flat performance in the company's fee-based lines of business. Noninterest income climbed just 2% to $121.4 million despite a 47% decline in Scout Funds advisory fees.
Noninterest expenses rose 8% to $185.3 million, mostly from higher salary costs.
The company last fall announced an initiative to improve its efficiency ratio to about 70%. That figure stood at 73.6% as of June 30.
Separately, UMB announced that it has hired Ram Shankar as chief financial officer. He succeeds Mike Hagedorn, CEO of the company's subsidiary bank, who filled the CFO role on an interim basis during an executive shake-up last fall.
The company's previous CFO, Brian Walker, resigned during the shake-up but remained with the company as chief accounting officer.
Shankar previously worked as a managing director at First Niagara Financial Group, the $40 billion-asset company in Buffalo, N.Y., that is in the process of selling itself to the $96 billion-asset KeyCorp in Cleveland.