UMB Financial Corp. said its earnings fell nearly 12.9 percent in the second quarter, largely from “headwinds” at its Scout Investments operation.
Kansas City-based UMB earned $30.2 million, or 65 cents a share, during April, May and June. A year ago it had earned $34.7 million, or 77 cents a share.
The quarter’s results benefited from completion of the purchase of Marquette Financial Cos., which boosted loans by $1 billion. UMB’s lending operations similarly boosted loans by $1 billion, UMB said.
Fee and other non-interest income fell 10.8 percent in the quarter compared with a year ago. UMB said much of the drop came at Scout Investments, which saw an $8.5 million, or 34.9 percent, decline in advisory fee income from the Scout Funds.
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Chief executive Mariner Kemper said the company has cut some expenses in an effort to operate more efficiently.
“In the second quarter, we consolidated several customer-facing lines of business — primarily in the bank — to more efficiently deliver our customer service strategy. Additionally, we reorganized our technology, operations and related support groups,” Kemper said.
The changes should cut annual costs $3.6 million when complete.
Assets at the end of the quarter totaled $18.4 billion, including $8.9 billion in loans and $7.5 billion in securities. The recent profit equaled a 0.70 percent return on assets during the quarter.