UMB Financial Corporation (NASDAQ: UMBF), a diversified financial holding company, announced earnings for the three months ended June 30 of $26.3 million or $0.66 per share ($0.65 diluted). This is an increase of $3.3 million, or 14.4 percent, compared to second quarter 2010 earnings of $23.0 million or $0.57 per share ($0.57 diluted).
Earnings for the six months ended June 30 were $57.2 million or $1.43 per share ($1.42 diluted). This is an increase of $8.0 million, or 16.2 percent, compared to the prior year-to-date earnings of $49.2 million or $1.23 per share ($1.22 diluted).
"Our second quarter earnings demonstrated strong performance across most of our businesses and in many of our key metrics," said Mariner Kemper, chairman and chief executive officer. "We posted industry-leading revenue and net income improvement through increased noninterest income and steady growth in our balance sheet from both deposit and loan growth. The revenue gains and balance sheet growth outpaced margin pressure originating from the continued low interest rate environment.
"We achieved record total revenue for the second quarter of $187.8 million, which demonstrates that our recent acquisitions have paid off through strong sales," Kemper continued. "Noninterest expense increases were led by investments in our businesses, which hampered operating leverage this quarter; however, we expect this metric to improve over time. Despite fairly significant headwinds, we are poised to benefit from our diversified business model and believe future opportunities exist for UMB."
Net interest income for the second quarter of 2011 increased $2.3 million, or 2.9 percent, compared to the same period in 2010. Average earning assets increased by $1.4 billion, or 14.0 percent, compared to the second quarter of 2010. This increase was due to a $791.0 million, or 16.1 percent, increase in average total securities, including trading securities and a $305.2 million, or 6.9 percent, increase in average loans. Net interest margin decreased 31 basis points to 2.98 percent for the three months ended June 30, 2011 compared to the same quarter in 2010.
UMB Financial Corporation is a diversified financial holding company headquartered in Kansas City, offering complete banking, asset management, health spending solutions and related financial services to commercial, institutional and personal customers nationwide. Its banking subsidiaries own and operate banking centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona.