UMB Financial Corp. Reports 1Q Earnings up 86.8 Percent

UMB Financial Corp, a Kansas City-based multi-bank holding company, announced earnings for the three-months ended March 31, 2008 of $32.4 million or 79 cents per share (78 cents diluted). This is an increase of $15 million, or 86.8 percent, compared to the first quarter 2007 earnings of $17.3 million or 41 cents per share (41 cents diluted).
“Simply stated, this quarter was a record quarter on its own merit,” said Mariner Kemper, chairman and CEO. “We achieved record quarterly earnings and revenue, with or without the impact of Visa Inc.’s (Visa) Initial Public Offering. These times of unprecedented pressure in the financial services industry have validated our time-tested business model based on a proven risk profile and uncompromised underwriting standards. Our solid foundation together with disciplined execution of our strategies has led to strong financial performance.”
As a direct result of Visa’s IPO, the current quarter included a pre-tax gain of $8.9 million from the mandatory redemption of a portion of the company’s Class B shares in Visa. The company also reduced its liability accrual by $4 million related to the company’s estimated share of Visa’s covered litigation. This reduction was a result of funding the covered litigation escrow by Visa, also part of their IPO process.
Excluding the Visa-related transactions, net income for the first quarter increased 39.1 percent to $24.1 million or 59 cents per share (58 cents diluted).

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