Quarterly profit at UMB Financial in Kansas City, Mo, jumped from a year earlier because of an increase in construction and commercial real estate lending.
The $19.6 billion-asset company said in a press release late Tuesday that its fourth-quarter earnings rose 45% from a year earlier, to $42.9 million. Earnings per share of 87 cents were a penny higher than the average estimate of analysts polled by Bloomberg.
Net interest income rose 15% to $123.9 million. Total loans grew 12% to $10.3 billion, including a 20% increase in commercial real estate and a 71% increase in construction lending. The net interest margin widened by 24 basis points to 3%.
Noninterest income rose by 3% to $116.3 million, as gains on alternative investments offset lower fees from trading and securities processing.
Noninterest expenses increased 2% to $186.3 million, mostly from salary and benefit costs.