Asset management fees helped push UMB Financial (UMBF) in Kansas City, Mo., to a higher quarterly profit.

The $15.3 billion-asset company's second-quarter earnings rose 35 from a year earlier, to $29.9 million. Earnings per share of 74 cents beat the estimates of analysts polled by Bloomberg by a penny.

Noninterest income rose 3% from the second quarter of 2012, to $113.6 million, largely because of a 14% increase in trust and securities processing fees, to $63.5 million. The rise in trust and securities fees reflects higher mutual fund and investment management income, the company said. Service-charges tied to deposit accounts rose slightly, to $20.9 million.

Net interest income rose 2% from a year earlier, to $82.3 million. A $1.6 billion increase in total earning assets, to $13.8 billion, offset a decline of 26 basis points in UMB's net interest margin, to 2.56%.

The loan-loss provision rose 11% from a year earlier, to $5 million, and net chargeoffs fell by 50%, to $3.2 million.

Noninterest expense rose 4% from the second quarter of 2012, to $150.3 million, as compensation costs rose 7%, to $83.6 million.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access