UMB Financial in Kansas City, Mo., on Tuesday
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.
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UMB Financial took its lumps last year when its funds management business suffered from large outflows. The challenge prompted UMB to tighten up on expenses and rely more on revenue tied to its balance sheet.
May 19 -
UMB Financial in Kansas City, Mo., reported higher profits as loan growth from a recent acquisition helped offset ongoing declines in its advisory business.
April 27 -
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
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
Separately, UMB announced that it has hired
The company's previous CFO, Brian Walker, resigned during the shake-up but remained with the company as
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