UMBF - Earnings call transcript Q4 2017 | UMB Financial Corporation

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Kay Gregory

Good morning and thank you for joining us.

On the call today are Mariner Kemper, President and CEO; Ram Shankar CFO; and Mike Hagedorn, CEO of UMB Bank.

Before we begin, let me remind you that today’s presentation contains forward-looking statements, all of which are subject to assumptions, risks, and uncertainties. Actual results and other future events, circumstances, or aspirations may differ materially from those set forth in any forward-looking statement. Information about factors that may cause them to differ is contained in our SEC filings.

speak to of the update by laws. in undertake and extent made Securities obligation no them statements only today, as we required Forward-looking except to

website supporting this refer of call supporting Reconciliations financial slides. for of on measures earnings in available the Our pages are Investor a included per All discussed non-GAAP per the slides been release, basis release in Please the and on metrics earnings the share. our diluted details and the at in continuing contained have in six operations. for about umbfinancial.com Section. to share eight are and tables share release diluted on earnings basic through earnings

Now, over the I’ll turn call to Kemper. Mariner

Mariner Kemper

and very interest expanding us. everyone and by and for Thank construction quarter XXXX. quarter fourth led strong you, pleased and on our year include credit thank I’m net results full for CRE margin. lending, highlights And Fourth Welcome joining a full billion. million, you growth non- with loan recently Kay. see On quarter or act. for a year fourth per continuing of from charge share. Slide topped the was $X.XX operations the $XX assets GAAP income you’ll Tax that included X, resulting expense our from recurring $X average basis, enacted XX.X% dynamics

of million. of gain adjusted expense of million pretax or divestiture have this share. share, Scout million been income included Investments would posted sale EPS of a net $XX.X pretax Excluding Discontinued $X.XX charge, approximately on $X $X.XX operations and per which the per $XXX.X

loans show X.X% the highlights. X.X%, annualized $XX.X balance or loan on credit linked-quarter basis. fourth lending growth balances for Average represent XX of of X.X% increased third compared to sheet and year-over-year quarter history. I’d cover loan like the quarter. First, few X Average and a to a snapshot billion increase and Slide

our over past highest loans and average XXXX production of quarter strong since to million, XXXX, year, $XXX quarters. average. billion the increasing above the remained the For million at four averaged line Top $XXX fourth full $XX.X the X.X% compared of

CRE, momentum many with about settle, dust positive. factoring tax Conversations planning. waiting continued. line to that XXXX But for take customers in tax lending have to of As to retained incremental advisors with the tax around and been while impact while optimistic accelerated are the to consensus be reform asset-based and lower working seems bottom long-term will investments The on rates. cash will be planned be advantage our

liquidity impact for months. Our production going excess line while our borrowers outlook how in forward, positive may the utilization closely remains for loan coming monitoring we’re

Turning to points Slide averaged XX, you’ll quarter just I years. net Net see the ratio, has charge-off past basis slightly the non-performing loans, average loans ticked of X.XX% share every while the of our of up showing over were five which the charge-offs X.XX% for chart, quarter, fourth history XX loans.

If the you the five year next you’ll loans. slide, our of look classified see at trend

our charge-offs. loan non-performing loans levels proud we’re to keep around, from moving will ability of While to bounce

problems we quarter, rates inherent early. factors, the conditions. in as As customers expense to other macroeconomic our risk the portfolio, identify for solve Provision know our to have our and with part fourth loan methodology, our ability of history decreased such and qualitative culture, and million the considers prescribed $X growth loss which well, credit consistent and

our loan credit and played During our that favorable historical classified provisioning. anomalies closer and quarters, net of the quarter the Lower trends net of past quarter some levels level migration part in provision. categories charge-offs reduced therefore, a impacted couple charge-offs, the to and in fourth we’ve discussed

even I’m historical continues consistently to quality strong be as record success. general proud our a for line in Operating we trends will And leverage performance. build of track underwrite. credit focus, portfolio our While quarter-to-quarter, extremely continues with vary future of from to quality be

full X.X%. X.X%, of expenses as the increased revenue of we X.X% grew For and leverage XXXX, operating positive posted year

XXXX maintain focus will and Looking expense ahead beyond, a at we diligent on and efficiency control.

followed that take the to our managing care approach long measured for the shareholders know time, and along events. regardless of term of we you’ve length way, communities business, our you of a us If taking for any and outside associates,

ongoing competitive While a the of the the course, revenue cyber as continue business, work expect related some our well modernization invest expect security, in of benefits we systems streams. flexibility, stay growth reform towards of To of our position key to and In anticipated marketplace. cost strategies. invest we having tax low our the in as including to competitive to XXXX, we in building us advantage prudently maintain our diversity core afford as solidifying and in funding,

you’ve heard runway say markets have of and we me before, customer in of believe to As segments. a we us significant our ahead some penetrated under expand

in curve, our player For to top investment example, industry position becoming will ahead HSA protecting user customers, and competitive. will in the Investments our partners is in the health business, stay well capabilities. serve as XXXX, digital our the for more experience expand of care as invest, that the our improve to we as

middle traditional clients and and through retain In have in to the and position user allow make particularly overall Act strategic technology is capabilities, Fund to and among Services, we comfortable XX platforms, expanded there top us we interface opportunity to efficiency market business. in providers industry, accelerate grow office While share infrastructure we the investments in with believe gains. superior, improve will our

investment the redoubling and also and businesses. exchange growing of including We are private equity investments our faster funds, focus, strategic segments in areas alternative traded

invest in customers. we’ll Scout we resulting from retain thoughtful be to deploy additional capital, business lower and and rate. Additionally, both We’ll service of tax acquire, on our to lines better how all sales across digital footprint continue

dividend release, near While other our also returning in acquisitions goals, increase supports reflects growth shareholders, the This increase. of to are as top to capital a a that commitment have organic in of our the as To from as well end, certainly which you our saw shareholders. list, our means we model. loan confidence value our the our first business $X.XX share represents to a and quarter X.X% increased our share, for we’ve $X.XXX

we As and in the wrap efficiency growth associates our that To communities further I’d look X,XXX all XXXX. we shareholders. our hard improvements continually to and work, in company with more benefit up, than share their how evaluate and I’m to for thank beyond. to best like consists, ahead XXXX to as performs, excited commitment and dedication associates,

it over Ram Ram? hand on discussion behind the the for I’ll Now, drivers results. to

Ram Shankar

expect news morning, to impact related Mariner’s on XXXX. Thanks, good everyone. Mariner, and I’ll tax with in and follow-up the and comments what the we topic leading begin reform

for stemming Our million, was expense Cuts to for operations Tax included the XX.X% of the fourth the million Act. and per share, our tax continuing $X rate tax and Jobs $X.XX enactment from equating effective a charge, quarter, of $XX.X

We expect the to GAAP tax XX% XX%. rate to approximately full year for be XXXX the

interest more million for factoring the quarter. quarter, X.XX% percentage of the fourth loan revenue. quarter of than X.XX% total represented was during followed Net the yielding grew linked interest our X/X components interest and of million to fourth higher third a Net in of additional Moving net $X.X at volumes increase portfolio. income of income quarter $XXX.X CRE, versus in fourth Increased margin drove quarter X.X%. the loans by a as mix-shift, asset-based

XX decreased. Compared basis interest-bearing XX and by rate expanded while increase benefit Our by deposits. funding cost to the our of points yield of basis five expansion basis in a held was to expanded cost the borrowing an mix, points. higher a this four driven NIM environment. free at interest costs as of of earning assets funds steady in Approximately the interest-bearing XXXX, over points, benefits of was that margin The improvement on basis by our of points offset from X.XX%, favorable third points provide liabilities by fourth quarter rates driven quarter basis rising combination XX short-term

gross and company fourth other the for million lower in were our basis, commission as as applied related increase basis taxable-equivalent as stated Bankcard activities $X.X million third as detailed increase quarter and the profit training, create compared bank-owned tax income XXXX. were income million bond of $X.X is and benefit sharing line an non-interest in margins. higher will million will going a a press and increased net include from It’ll reduction tax to offset which visual net some details be improved X.XX%. increased in to changes quarter comp XX X.X% and expense, to Drivers in as expense, XX the If the below, drivers in expense, which contracting customer to contain in lower the securities. rate salary the rate and As which quarter. the by neutral, the swaps. tax serve bonus forward from sale insurance, on is performance non-interest our our related the reminder, income, plan, life approximately income Slide NIM gains derivative line $XX.X well of been interest the margin. on corporate the included or earnings as new contributions up deferred million additional in to release the under but the of of changes interest increased reduce $X to line in the by offset offset positive well result brokerage increased linked-quarter $X.X or The results, the would’ve Slide X.X%, of the in

end the other to the a million of which the $X in line. is made Foundation at year, Charitable expense the Additionally, we’ve included contribution UMBFC

and Looking seasonal be benefits expenses comp sharing $X consistent contribution of after our fourth incentive with excluding charitable lower donation. resetting million accruals. offset $X generally FICA by we The our ahead to quarter, and be to million the other first levels, will operating expect profit quarter

in on the decreased at accretive to purchases the The shows average related on our portfolio Details were will Mike seven past increased a our portfolio of on XX. yields. basis, to while the balance shown Slide X.XX%, and sheet. details statistics XX portfolio average in as basis balance activities composition made bank discuss points our linked-quarter are quarter’s section. investment moving to the portfolio. loan yield million AFS the Slide $XX Now

mix to the base three basis our line Including Similar modeling. to with deposits we’ve seen or betas basis our deposit between deposit cost simulation DDAs, while and quarter, the in increased to be average billion X.X% than demand $XX.X and $XXX to the to increased five continue on more changes $XXX prior deposits of XX liabilities deposits, last institutional million, points. Slide quarter, reflecting million. cost deposits. categories. commercial in deposit to interest-bearing average as index movement quarter, to interest-bearing well led some by fourth an points, from for hike, of of the points The rate as Total December of customer commercial Turning compared increase XX. and repricing was prior the the increased following deposits quarter institutional basis basis deposits Compared deposits our third quarter, points slower increased XX

As remained interest-bearing our total points. of basis I mentioned, cost liabilities at XX

compared to of average the the total and and quarter, third interest-bearing cost fed variance to increased funds of than mix steady. Our balances serving the total the dropped purchased liabilities to offset deposits, of agreements XX% more cost favorable the hold related repurchase

is base funding short-term total interest rates. hard Our index about XX% to

the Bank by Slide Asset you’ll the followed Finally, beginning each. details and details Segments on XX, see on for Servicing

fourth administration with sale quarter Robust new Our of billion $XXX.X addition are $XXX.X through Slide year reduction Slides of positive Trust under Series Fund assets and our inflows nearly third end nine AUA Details compared market products, and XX Scout Services the offset action related to end, at of at this the the ago. the combined to business the to related XX. billion to billion quarter during segment on ended in of the the closing quarter $XXX.X a quarter. relationships of

Mike questions. a to then, of performance on highlights take Now, over Mike? be I’ll for turn And we’ll your the few to bank. it happy

Mike Hagedorn

improvement The third Thanks expense employee in XX.X% posted for despite majority of the benefit quarter, discussed earlier. profit slight quarter, from a increased bonus carrying and margin pretax Ram. Ram a segment of and the commission XX.X% Bank

Turning to Slide XX.

X.X% is in plus million. for the You’ll in of and Total balances quarters. loans, over represented of average the see with paydowns the past increases of of $XX levels payoffs million million which $XXX loan revolving strong $XXX production gross line four quarter

and We composition we XX, our view several customers seeing continue lending verticals, some platforms. real consolidations estate experienced to Slides and our and construction some in and regional of The XX we loan shown and cyclical see book on year-end commercial national in are lines. positive are markets business of and trends our among and paydowns our

Our a $X.X deals lenders steady of loans supply CRE saw more and XXXX, billion in construction than in year-to-date. reviewing

fundamentals affect we we seen positive tax remain or acquisition While to CRE reform development expect activity. as into significantly it is remains Market active a and as positive, pipeline move XXXX. don’t our

asset-based increases quarters, respectively. lending had each and posting businesses XX% of strong XX% factoring and Our

of rules referenced, new tax and from advance greater As XX.X% pending an anticipation increased Finance as spending In in due the flows market there rushed to is the act. debt cash under Trading Banking, depreciation more revenue Mariner the helped act. Investment drive CapEx of Institutional beneficial increase income linked to Banking Public issuers and in the quarter tax reform

had ever year and its basis compared in new Trust Processing quarter, revenue. team shows to month enjoying Trust on Corporate strong a Trust Securities up in full Our a December. best XX.X% increased XXXX and Corporate business income, revenue

increases in referred we to assets year and the contributed planning. we These management such we to Business continues to a a continue Management under and U.S., see Additionally, buildup balances as businesses, the within earlier. expertise on the our tend saw the of wealth of Wealth related to toward out the in trust DDA this business provider bond cash Trust as expand cyclical business fifth to municipal funding continuity to increase largest in our of distributions. Ram as areas be build and transfer be source In end focus

XX, stood we year-over-year representing on increase. to Institutional in year-end, Slide X.X% our Bank, Wealth, continue Private $XX.X at changes Consumer Asset Brokerage and billion As our AUM to shown In make efficiency. improve Management a at

we facilities. total banking bringing and XX XX consolidated three to During locations, XXXX, branch and our private commercial wealth centers

accounts, the on which new number fourth season brought open XXX,XXX Turning enrollment million. X.X HSA to health now services, care quarter

industry-leading deposit assets seen XXXX the growth investment of growth phenomenal asset annual from XX.X%. and Our levels. Slide more with total rates, increase XX, XX% of deposits HSA historical rates growth in average continued year-end a XXXX deposits have than shows and trends. represent doubling total

last the customers. Apple This its growth two announced turn in building of Healthcare continue powered launch, week and operator who technology ReceiptVault, along I’ll seamlessly With efforts by questions. Mariner previously with HSA businesses, solution over experience features, Pay we cloud-optimized initiatives launched in and integrated conclude investment remarks customer Services a UMB our the open our examples prepared it such are the Azure, in as to Additionally, that that for announced to new for back mentioned. Microsoft our continued digital strategy that, will up line specifically, and HSA

Operator

America with question from Lynch. first Merrill Ebrahim the And Instructions] [Operator you. Thank comes Poonawala Bank of

Ebrahim Poonawala

Good morning guys.

Mariner Kemper

Good morning Ebrahim.

Ram Shankar

Good morning Ebrahim.

Ebrahim Poonawala

wanted you one XQ, bumps the we of offset mentioned to just do wanted of about your I Is that’s think not saw, to less expenses $X calling be operating you So I in Ram, other the out million or seasonable terms expense $XXX terms also understand million. than the expense? so bumps follow-up, $X.X should that guide, sticky million commission you’re that What some was it expect in and in the why like to of time? bonus XQ, and

Ram Shankar

the payroll of So quarter some call I offset reduction in taxes commissions. in of first and did said Ebrahim. out, resetting the be some and by bonus it I FICA should

in commissions bonus you know, typically as are, variable nature. and the So

If look commissions. basis, driving revenues year-over-year our $XX a million, bonus some that’s you of so up on and the are

reset And bonus so as reset. the year, commissions should and it we should –

Ebrahim Poonawala

Okay.

as So the we versus outside we fades? at the seasonal to should down number any into when of further in second should like sort going that see, investments, expect look quarter of drop XQ we out impact XQ,

Ram Shankar

impact The payroll, FICA seasonal yes. to and

You’re right.

Ebrahim Poonawala

of in two would dollar? a have And those do sense you of how terms be, big

Ram Shankar

that can back you I that. to I handy, don’t have get on Ebrahim.

Ebrahim Poonawala

on question Sure. bigger picture And expenses. just a

you if continued or Mariner sort franchise. across basis-plus extent want expense either operating how investments of XXX bunch XXXX? about XXXX. efficiency Like giving the a So of sort obviously, targets, to – terms without we of sort would of growth think with in us relative outlined year-over-year delivered of the in leverage of positive to

Mike Hagedorn

kind of we you to kind rather tried one remarks. prepared But from and moving guidance. investing without we really roadmap. really the accelerated to systems it’s challenging our from other in it’s of shift can the best Ebrahim, is So I one the give a the current of at I investing an that in the keep than in spending digital rate. a levels, that giving innovation core at address to But intend know

Ebrahim Poonawala

of Perfect. growth XXXX in XXXX, step That’s bumps as of I to get taking like loan much tax we about more are helpful. And be of a any because terms better pretty the to outside think think loan you reform? back, Or we should we be where optimistic for given growth it economy the is? overall expecting similar are

Mike Hagedorn

the ahead a given quarter bit really basically that. We’ve and beyond look nothing of little

in gross our seeing. be been production loan somewhat expect with we’ve to line We what

As whether It’s cetera, really related tax it tell. our statements to it’s our think it accelerate are or much customers perception reacting. customers monitoring not impacts be We’ll that kind taxes, to would how I early relates these haven’t through of like flow yet. to et too our we seen

And I kind own our in our and of monitor think, react like will customer way. us it much base so

Ebrahim Poonawala

And ROA may. we Mariner, optimal think would is bank to operating want question, about think about and this be last a not return about Understood. what of few what But one return, you the you do or equity you on think tangible XXXX. years out? level like as about if When I the franchise be this at – should

John Mariner

do certainly, things and doing anyway. not continue certainly can that there, targets we’re before, spoken to we’ve intend So, we’re our better have we working own are believe improve. publicly we than today We towards. We guidelines as and we to

marching so interest. performance peer-like we’re for in aiming We’re and

Ebrahim Poonawala

my questions. for taking Thanks Perfect.

Operator

Thank comes Fargo Wells the Jared with you. from Securities. next Shaw question And

Timur Braziler

Jared. filling Timur Hi, morning. actually for good This is Braziler in

John Mariner

Timur. morning Good

Timur Braziler

morning. Good

to the bank type health some seems slowing HSA high if are deposit high actual employer of guys growth very what trend? to color plan transition you’re standpoint? seeing season, trends, maybe heard seeing from And early growth relates I’m rate. around it the that just wondering of an similar we to enrollment another as of question, First from any little its be of you that deductible a

Mike Hagedorn

Yes. that and what XX%. grow we expected. all growth This did which a honestly, open is And to rates, been do than successful period growth a the complete historical at continue expect Mike. was enrollment little better have to investment over just deposit we We our

maybe open So results expected through as slightly expected, better our seeing, than we’re enrollment. as

Timur Braziler

composition we you Or having When really and looking growth? loan commercial getting Okay, that’s that you Ebrahim’s helpful. categories more as some of see out on and at for looking be you’re optimizing still contributing question that maybe should utilization sort year? just maybe are real the overall estate up growth increased XXXX, And following from and loan growth. conversations more to at look growth the regarding early clients, next driving other rate of line with you’ll construction

Mike Hagedorn

I be estimate. estimation utilization think improved be because at we that the would commercial something your there of conditions would level better might also

However, coming and right, there then likely cash. into own and is Maybe an use they more improving economy it their use cash.

to there really as drives not or tax borrowing. to more the to are some things whether monitor So impact

growth that. the lending have monitor perspective all area. do of lines vertical So just We across from to our we’ll expect a within business our

to the of of on scale growth. are deals because little bit come the larger in, it’s just of that they continue CRE the side, opportunities have just However, likely piece they so. as outside an The the a of

Timur Braziler

last one for guess me. I And helpful. that’s Okay, one

and should should rather excess how liquidity built securities your going extent And think position what in this to growth securities subsequent into seeing we being up than that guess, the able the at timing be portfolio that to about of deploy the book, loans? we I look cash? quarter you As the

Ram Shankar

Obviously, markets markets appetite our where fixed for the municipal are, no portfolio. would markets, I to watching that the MBS income there’s we’re closely. say, and pretty markets investment given us increase big Timur,

growth. we’ve M&A pursuing remarks, stated loan As actively Mariner it. this our said been his been those as prepared for we’ll we’ll liquidity pursue goal And all being That’s in then, deploy else for we’ll organic and look equal, opportunity.

Timur Braziler

Thank Great. you.

Operator

KBW. Thank with you. question Chris next McGratty from And the comes

Chris McGratty

that line, Hey, to good trading in the with you it bond you business you will fee then, line remind supporting on this me morning rates? how is, it can Maybe could Is The everybody. is income think the And the initiative? an bias that a trading? IB upward start. comment perform question if factor driving on to

Mariner Kemper

trading your XX bond and entirely, correct. assumption in And to or bank-qualified is remember BQ-related to its banks business financial at institutions. launched was UMB, successfully underwriting. bond So last issuance historically we’ve launched the other And corporate predominantly, and not that – it XX that months non- some if

for And into side dramatic fact, us of institutions, so seen in on report a that, country the move decline banks has and has some what increases which helped in largest in the us. has the the have while some you been pretty other of BQ offset that successful been corporates, launch

Mike Hagedorn

isn’t just the market. And in loss BQ of out it be macroeconomic just smaller and bond is the linked have And the volatility make discussed in decline lot the clients. just market bond been banks up. to matter It’s a side getting money a of as we there really in

So macroeconomic that’s all because conditions. just basically of

We expect to future. the also in near return that

Mariner Kemper

I movement heard. kind around might kind our diversification. quite furtherance of of company, that just a It’s have you’ve of honestly just add, of the is legacy been corporates a into message a And

line was segment one customer that further that. just our tied in beyond one it’s business and to again, specifically diversifying once So moving we’re

Mike Hagedorn

recent about a We’ve the as we’re lot excited deals, non-BQ size our lot doing of versus and positive of larger We’re think, we’re number of deals. business. And issues, that’s of we’ve the underwritten space a the New York about that is is the kind deals activity that expanded into But for pretty volume calls in the driving the of seeing. had I I of always always excited about office, which – very issues. talked, lot a

Chris McGratty

million That’s may a this the the $XXX payroll? or maybe the the maybe was million $XXX in reported little quarter take the less million? just technical expenses. clarification The million charges guide is Ram, that $X both it a need the Or factor – question. the clarification but And there? $XXX are QX in was of would reduction I great that some And also missed quarter, on color. – have for

Ram Shankar

for Yes. the million, No, increased I million foundation. charitable sharing $X million $X and profit said $XXX for $X the million minus

that’s if will. you your So new base,

Chris McGratty

Okay.

we factor seasonal as well And would so the see in FICA? the for bump $XXX million that

Ram Shankar

bonus this quarter. That’s commissions increased past correct. that the then by And and that’ll be offset

Chris McGratty

great. two And then, questions. maybe modeling more Okay,

I think you Is basis gross the in X.XX%. have remarks said right relative starting that the prepared would for That’s X.XX% NIM. – XX the the base? been up point relative that’s to adjustment

Ram Shankar

Exactly. That’s right.

Chris McGratty

then this looked bully the And deck, Okay. million? last was a slide outside release above the think one talked this on there little the It during I other quarter income. you the $X strength, In high quarter. about benefit an

Ram Shankar

was offset an of COLI, is company-owned insurance, line life some No, the deferred line expense item and item. the comp that and in in salary it equal

of call There’s from million. that’s about, payout. So $X.X additional nonrecurring a $X.X million it, about benefits

Chris McGratty

Okay.

So million Thank adjustment Okay. $X.X you the is much. kind to very the starting, of right? the

Operator

with from Piper And the comes Race Nathan Jaffray. question next

Nathan Race

sequentially, XXXX? this just in start It just – on fees of payoffs the could if the the any benefited that there so looks how in elevated margin prepaid again are kind the so trending far in they’re quarter. curious quarter to and payouts curious Wanted like up have are

Mariner Kemper

unusual. Nothing

take that’s of largely largely maturity come And that’s CRE that’s where place. the space. where being Just going the to going in to that’s –

what the from come on be, don’t to real handle and a of our then, that our like portfolio. good buyouts acceleration C&I on quarter. to We probably lending the the a have construction level there’s there’s within based will maturity point in nuance and unusual nothing but portfolio. Now set might number things But some

Nathan Race

all and just just curious, brach expense And helpful. But And That’s expenses. just, kind Ram, close for of, tried appreciate on branches the you quarter. in guidance guys first your you XXXX. at XX as look think color about then the to I I thinking your guys second occupancy network,

on on forward? plans that going front curious just So any

Mike Hagedorn

which number give going or called the is transactions a X,XXX you program guidance on talked per the Yes, about represents we’ve as XK, is this past, specific Mike. Not But branch number. to less. this in

is we next we that We’ve at so But started heavy group, of to mostly are call And inside lifting the through which company. really look behind us. our XK the process. mostly

expect think to we’ve of that couple levels you should last the in kind I So had see don’t the years. of same

Nathan Race

Appreciate the color, you. Got Thank it. Mike.

Operator

the Stephens And Instructions] Inc. from Olney next [Operator comes question Matt with

Matt Olney

the I I’m you I now about closed, deploying the And the via sale before trying I’m of of have appreciate of growth. you just the portion on much thoughts that excess organic guess, XXXX? deployment a understand the capital. thoughts curious mentioned what guys M&A loan updated for in how urgency are Mariner, Scout has that to

Mariner Kemper

be et just matter changed, hasn’t really to remain urgency the financial do are transaction and accretive, we which like all meets So that cetera. a acquisitive just one of we would it’s the or would hurdles, that And already we acquisitive. finding and a it’s whether cultural or

and the hunt looking right the on we’re are and conversations deal. the for having so And

Matt Olney

switching up. there? went charge-offs list in ticked looks like seeing also what the up and credit credit, I Anything curious seeing then were And side? down, loans over Okay. non-accruals to you’re think, It I’m you’re on – watch but

Mariner Kemper

No.

you’ll watching fact, of loans nonperforming a is have that for strength have matter migration know we while, really that that we us charge-offs. an been a low the to As from you’ve incredibly

So situations we are really and up monitoring good and at or reacting things out. moving

what expect to and focus would operate here nonperforming at our I we our continue to to on rather our that is And levels. remarks, in from historic returned said charge-off our And bumps what we you aside rate. So historic we’ve there, say is levels. should than rate – really as

Matt Olney

Okay. Thank you.

Operator

any comments. Kay are I’m there Gregory at closing call more sorry, present time, for as the to – no And to questions I for the would return like any

Kay Gregory

This today. for will at replay and it us X. call joining our thanks via and be through website you, Thank can February run accessed

Relations time. always XXX-XXX-XXXX and any can UMB at follow-up Again Thank contact interest As we you you. appreciate with your Investor questions.

Operator

for Thank Thank you you. has now today’s attending presentation. The conference concluded.

You may now disconnect.

UMB Financial (UMBF) 24 Jan 182017 Q4 Earnings call transcript