UMB Financial in Kansas City, Mo.,
First-quarter profits rose 7% from a year earlier to $36.2 million, the company said in a news release. Earnings per share were 74 cents, or 11 cents higher than an estimate of analysts polled by Bloomberg.
Gains from the company's May 2015 acquisition of the $1.2 billion-asset Marquette Financial drove profits higher.
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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 higher fourth-quarter profit, thanks to loan growth tied to a recent acquisition.
January 26 -
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
Net interest income jumped 30% to $117.9 million, while total loans increased 29%, to $9.7 billion. The net interest margin expanded 33 basis points, to 2.79%.
Meanwhile, fee-based lines of business were a drag. Noninterest revenue dipped 7% to $116.4 million amid
"It is likely to take some time for [investment services] to be a meaningful contributor again," Mariner Kemper, UMB's chairman and chief executive, said during a conference call Wednesday to discuss the quarterly results.
Noninterest expenses rose 9%, to $180 million, mostly from higher salary and benefit costs.
The company