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UMB Financial reports a drop in earnings, but its stock rises

Updated: 2013-04-24T03:45:15Z


The Kansas City Star

Shares of UMB Financial Corp. jumped 4.8 percent despite the company’s report that earnings fell sharply in the first quarter.

The banking company attributed a 24.6 percent decline in first-quarter profits to a drop in its gains on securities sales and an accounting change a year ago.

UMB reported higher interest earnings, partly from loan growth, and higher fee income in the quarter. Its shares gained $2.24, or 4.8 percent, and closed at $49.13.

Profits in the quarter totaled $34.9 million, or 87 cents a share, compared with $46.4 million, or $1.15 a share, a year ago.

“This year marks our 100th anniversary, and while the operating environment continues to be a challenge, I could not be more pleased that UMB has stood the test of time as a diversified financial services company,” chairman and chief executive Mariner Kemper said.

Loans totaled $6 billion at the end of March, reflecting a 15 percent increase in average total loans throughout the quarter. Securities investments totaled $7.1 billion. Total assets grew to $15.7 billion.

UMB said its income from various fee businesses grew to 60.4 percent of revenues in the quarter. Its investment services, one source of fee income, managed $35.7 billion at the end of the quarter, up 14.1 percent.

The company said it filed a shelf registration with the Securities and Exchange Commission. That gives UMB Financial the flexibility to raise capital through stock or bond sales, though the company said it had no current plans to do so.

At the company’s annual meeting Tuesday, two-thirds of shareholders rejected a proposal that would have prevented one person from serving as both chairman and chief executive officer.

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