Third-quarter income rose slightly for UMB Financial (UMBF) as the Kansas City, Mo., company reported higher average loan balances and noninterest expenses.
The $13.2 billion-asset UMB posted earnings of $26.1 million, up less than 1% from a year earlier. Earnings per share were flat at 64 cents, the company said Tuesday.
Average third-quarter loan balances increased more than 10%, to $5.3 billion, from a year earlier. This was mostly driven by a 28% increase in commercial loans. Net interest income rose almost 2%, to $80.4 million.
UMB's noninterest expense rose more than 4%, to $145.9 million. Salaries and employee benefits climbed 5%, to $78.8 million, while marketing and business development costs increased 50%, to $7.4 million.
Additional fee income partially offset these cost increases. Noninterest income rose 5%, to $106.3 million, year over year. This was mostly attributed to an 8% increase, to $56.3 million, in trust and securities processing income.
UMB's payments segment posted strong purchase volume as spending in the company's card products increased by more than 38% year over year, Peter deSilva, president and chief operating officer, said in a news release. Spending on healthcare cards rose almost 14%, and this business continued to be a big contributor to fee income, deSilva said.
UMB's provision for loan losses remained flat from a year ago at $4.5 million.
For the first nine months of the year, UMB earned $101.7 million, up 22% from the same period a year earlier.
