A larger loan portfolio lifted first-quarter profits at UMB Financial Corp. by 7.3 percent despite a decline in revenues from fees and other non-lending operations.
The $36.2 million profit in the first three months of 2016 equaled 74 cents a share, compared with $33.8 million, or 74 cents a share, in the first quarter a year ago. The higher profit was spread among more shares, which is why earnings per share did not climb.
Kansas City-based UMB said it had $9.7 billion in loans at the end of March, a 29 percent increase from a year earlier. Growth particularly came among construction and commercial loans in its real estate loan portfolio and commercial lending to businesses.
Chief executive officer Mariner Kemper said Tuesday the higher profit reflected the company’s cost-cutting efforts, which included some layoffs last year, and lending activity by “legacy UMB lenders,” which would indicate UMB’s staff in place before the acquisition of Marquette Financial Cos.
“Loans produced by legacy UMB lenders increased 16 percent during that period (first quarter), once again outpacing industry averages. In addition, we recognized savings of $4.9 million in the first quarter related to our efficiency initiative,” Kemper said in the announcement.
Total revenues in the quarter were 8.7 percent higher than a year ago.