FTSE 100 today: Index rises, pound strengthens; Tullow Oil slumps, Hiscox rises
Investing.com -- UMB Financial Corporation (NASDAQ:UMBF) shares gained 2.6% after the financial services company reported second-quarter earnings that significantly exceeded analyst expectations, driven by strong loan and deposit growth alongside substantial gains from private investments.
The company posted adjusted earnings of $2.96 per share, handily beating the analyst consensus of $2.37. Revenue surged to $689.2 million, well above estimates of $635.9 million and representing a 76.7% increase YoY. Net interest income jumped 90.5% YoY to $467 million, while noninterest income rose 53.3% to $222.2 million.
"Our strong second quarter financial results were once again facilitated by strong growth on both sides of our balance sheet, outsized fee income gains, improved asset quality metrics and improved operating leverage," said Mariner Kemper (NYSE:KMPR), UMB Financial Corporation chairman and chief executive officer.
The quarter benefited significantly from UMB’s investment portfolio, including a $29.4 million pre-tax gain from its stake in Voyager Technologies, which went public in June. Total (EPA:TTEF) investment securities gains contributed $37.7 million to the quarter’s results.
UMB’s net interest margin expanded to 3.10%, up 14 basis points from the previous quarter and 59 basis points YoY. Average loans increased 12.7% from the linked quarter to $36.4 billion, while average deposits grew 10.7% to $55.6 billion.
The company’s efficiency ratio improved to 53.4% compared to 63.4% in the same quarter last year. Net charge-offs improved to 17 basis points of average loans, while nonperforming loans decreased to 26 basis points of total loans from 28 basis points in the previous quarter.
UMB continues to integrate Heartland Financial USA (NASDAQ:HTLF), having successfully converted the Minnesota franchise to UMB systems in mid-July, with remaining franchises scheduled for conversion in October 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.