UMB Financial (UMBF) in Kansas City, Mo., reported a big jump in profits as the company benefited from loan growth and a rise in fee income.
The $15.5 billion-asset company's earnings rose 65% from a year earlier, to $37.4 million. Earnings per share of 78 cents were 4 cents higher than the average estimate of analysts polled by Bloomberg.
Noninterest income rose 24% from the fourth quarter of 2012, to $135.6 million, largely because of a 22% increase in trust and securities processing income. Income from advisory fees, investment management services and fund administration and custody services all increased.
UMB's net interest income increased 7% from a year earlier, to $85.9 million, as average loans rose by 19%. The net interest margin compressed by 13 basis points from a year earlier, to 2.51%.
Noninterest expense rose 8% from a year earlier, to $170.4 million, because of higher salary and employee benefits costs.
UMB's loan-loss provision was unchanged from the fourth quarter of 2012, at $4 million. Net chargeoffs rose 8% from a year earlier, to $4.1 million.