UMBF - Earnings call transcript Q4 2018 | UMB Financial Corporation

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Operator

Good morning and welcome to the UMB Financial Fourth Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Kay Gregory of Investor Relations. ahead. go Please

Kay Gregory

you thank us. Welcome, for and joining

question-and-answer the and Ram today of Bank, for Mariner President are CEO; and UMB the available be President Kemper, will Shankar, CEO On and call session. CFO. Rine, Jim

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

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

in the section. measures diluted of All the and earnings share non-GAAP financial the comparable of nearest release a the XX materials. basis. Investors call are been Our available and at are materials included to Reconciliations XX on supporting share measures on metrics this GAAP have our Slides in discussed on per on umbfinancial.com earnings website

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

Mariner Kemper

thanks, and everyone, your UMB. interest Kay, you, Thank in for

the credit you've specific this in million of hallmark As this our for a that our by thorough After to to deterioration us. isolated, review, don't release, for a fourth expected and typical this that sector. – any long UMB, not not believe the certainly points was in issues of quarter is asset impacted significantly and single press the and $XX.X charge-off we particular believe were quality Strong factoring were a relationship. results has seen charge-off been been has we

have in quality. loan overall remains improvements Our seen diversified, we portfolio and

Slide for may able reported quality, that I'm event, the your showing proceedings, you'll which we In XX, ongoing fourth for because we net to credit on quarter. net not from summarized would while this all recoveries, to fact, underwriting the an standards issues. live of I'm quarter. personal headline believe excellent We that standards we've note, intend strong. to were unrelated both we But we credit within proceedings. pursue to bankruptcy losses, few it's often involved some managers. is of to filed charge-offs questions of million the remain relatively of and outstanding fourth understandably purposes. chart legal we accurate outside rights, $XX.X related asset incident, from the up being have underwriting can have that be this or sure on including answer the the in of that and obtained as found the a in placed for and, September XX, can accounting we we customer to processes for ranked to our as credit XXXX, processes timely, On that receivership, a fully as and than the them our determined disappointed analyzed ourselves protection risk bids charge off deeply believe fully In doesn't with bankruptcy our I credit. Based after January. deviation the our more failure in this third-party credit not, share that under Again, quarter outside we of for our history, set isolated most was the information a understand this result the receive receivership

to We and as learn improve. opportunity an will this use event

loan or flat, this quarter data. impacted strong, quarter. according payoffs third by loan was to X was solid, remained to X.X% X.X% relatively charge-off, of paydowns C&I expansion the at the line loan linked City, year-end. average linked for and Top Colorado. our with CRE growth versus X.X% for of and represented and very biggest Texas Aside growth followed results, was X.X% X.X% a contributor basis the from points. Average on by payoffs coming Top the was quarter quarter growth, annualized Kansas million quarter and quarter to deposit the industry, the loans. including for the loans H.X fourth annualized Total paydowns X.X% growth quarter basis at production increased margin again balances in region $XXX while this compared

averages. mentioned we paydowns last similar quarter, we and our reset expected slightly long-term and is to this As payoffs higher, to level quarterly

compared Looking the of provide similar strong, outlook saw to fourth X.X% compared ahead into at increased quarter. more third in remains will grew the third metrics first these Net fueled for going income by into increased quarter, Ram what quarter, X.X% the we minutes. our quarter to wholesale to to the interest X.XX% loan for loan DDA asset drag and volume the more increase. decreased promotional a by few rising than increased balances carry repricing, Expenses Net the quarter expected detail growth was full a X liquidity the was or on borrowing basis a yields, an deposit continue which basis, point mitigated quarter and the operating margin higher impact offset favorable balances. The costs. interest of pipeline X.X%. and and levels excess and from the we quarter funding

we operating continue. leverage term, As that over long expect focused you and we on repeat the to our each should are quarter,

X.X%. For year XXXX, the positive of of operating we generated full leverage

during December. $XX shares. repurchase XXX,XXX Finally, We approximately we That in stock you'll approximately fourth announced agreement that recall was of completed agreement for million the shares repurchased quarter. outstanding an our accelerated

growth, share the organic periodic consolidating continued our buyback in priorities Our businesses; future authorization, in loan including for fee M&A; use of and potential interest potentially increases; opportunities capital by share the dividend opportunistic augmented accelerated bank repurchases. remain for

more Ram to the over Ram? our behind back detailed discussion it turn for results. of drivers a I'll Now

Ram Shankar

Thanks, Mariner.

a along offset third was a to loan market the The related strong million, shift, fourth linked-quarter basis. of net impacts increases, interest more money mix $XXX.X our representing quarter income positive X.X% deposit interest expense than additional and the our deposit increase growth rate For quarter, campaign. on with

XX% points asset earning by has cumulative and basis our beta earning for cycle-to-date, expanded a that beta. outpaced total yield asset XXX of Our asset for X.XX% the quarter funding, to

LIBOR loans total yields in shown basis to third XX% our beta. X.XX%. increased XX, of a Slide period, LIBOR, rose funds for $XXX.X yield on XX moving compared more to a closely same ahead quarter we to fourth points basis million third balance increase rates basis cumulative behave December the from linked-quarter our of hike. tied approximately cost on historical the as rate With point to The loan to our the points quarter, basis X.XX% Portfolio X.XX% saw the average quarter. of and XX XX During pattern average Unlike their in AFS increased XX% a

public basis an The additional $XXX balances, increased from at yield, liquidity fed purchased roll on was total in of earnings increase and reinvesting X.XX% XX an yield for to about deposits deployed points assets and an the addition institutional we the funds sold In bearing interest of points off drove which of The impact XX%. yield quarter during some of quarter. levels. from seasonal of funds million excess X.XX%, average due beta last was the our basis bank X increases from provided as a

bearing On average the a the market late basis, seasonal sheet, which Trust for of our the money the average by linked-quarter the in of deposits third due XX.X% total build quarter impact in quarter. typical to cash increased deposits on increased to total deposits X.X% Corporate average related DDA represented balances, occurred campaign liability the fourth business distributions. full led and by balance municipal up quarter side of partly of Non-interest bond

deposits, to and composition accounts deposits, performance X% open interest of occurs enrollment in funded quarter is in on XX.X% balances money when Commercial accounts. at portion deposit market increased bearing the growth largest shown balances XX. our money Our as year-over-year, business, Slide market In accounts consumer average in followed and healthcare of the the represented year-end. linked-quarter our in following deposit compared increase quarter third first cyclical these are the by much

interest-bearing balances, deposits XX X the Margin up During deposits of prior respectively, basis the volumes, to points XX of X to for points points points of X.XX%. drag liquidity points. was approximately our excess margin a higher X basis and loan the and related X positively points the cost was higher Net cost total quarter, related interest quarter. basis points DDA by impact quarter from impacted of fees. basis increased to the our X.XX%, expected X – points X from about higher was and The basis from basis benefit negative of basis loan and X.XX% rates, deposit basis

has Our Bloomberg June internal economic contribute forecasts and the just outlook we in one hike to rate XXXX.

help a to portfolio while on short-end our of flatter impact building lengthening mitigate the are We the some still liquidity duration, curve.

This the adjustments. back expenses XX and income, life the from slides million the $X.X a the deferred for to through to income due and market was of million composition income in Moving $XX fourth decrease largely third XX, reduction expense. an was related non-interest statement, in insurance to valuation our company-owned in comp quarter. offset The which show salaries benefits quarter has drivers

a Additionally, in prior fees $X.X sale recoveries. on in These upward assets decrease swing quarter. after partially the derivative an we posted in loss offset gains to about were related $X.X back-to-back decreases of in million million by and XXX,XXX swaps

expense. Our Slide to strong business offices new and severance business table. $X fees due to increased in in also impacted in trust shown in and December. our the increased quarter posting quarter changes the The Other processing in and third compared Salaries alternative income conditions the are and during trust was in show million Corporate best the legacy the servicing and expense additional $XXX,XXX and included contributing to drivers included made included one an processing by All in business. Trust negatively and expense. performance benefits was mentioned securities growth, Overall, securities team Charitable a quarterly revenue expense in the increase non-interest was new day continues I increase the XX $X.X contains related our UMBFC expense and expense earlier. the deferred X% $XXX,XXX comp of of and contribution detailed to offset to income part their to third ever million quarter. decrease lower increased derivative impacted partially Foundation by asset month and our non-interest compared market reconciliation

rose consulting quarter variances and discussed timing the expenses may to legal These previous lumpy the and there we've be to quarters. related expense the quarter-to-quarter. related can third ongoing investments in Finally, compared be

rate effective of the for Finally, was XX.X% our year full tax XXXX.

rate to for our we quarter. tax lowered quarter, recognized the million return which provision the effective approximately adjustments, in During $X

the XX%. For tax we XXXX, and our expect rate range between to year full XX%

details them results begins Q&A to those turn portion back take begin we'll remarks it press the I'll cover In included be concludes questions. the release of to over Our call. segment here, the I won't time, of That each to now XX. in interest and Slide your and the of are happy additional the at on our prepared but operator

Operator

Fargo Wells We the question-and-answer Please Instructions] Our will [Operator go session. question of ahead. comes now from Shaw Securities. first begin Jared

Jared Shaw

morning. good Hi

Mariner Kemper

morning Good Jared.

Jared Shaw

Maybe give behind the if you're pipeline now, the of we seeing for that Obviously, as we can there? or trends enrollment HSA with you us us seeing the growth first can cycle as you go and into you're growth what with start trends account deposit any in terms – quarter.

Mariner Kemper

– issues, and our sounds to to that who related whatever phone make remind bandwidth it it's static I'm some want some for in start anybody to we've but this to I had I Sure. any don't to there's cetera. of will missed lots by email or on. we was investor might what will to I later. available Mariner. be, while And because everybody like this happened, into et there Jared, also want our looking find call apologize going has some some you this and I – advance making difficulties. have as traffic certainly be had will real myself or know everybody text and comments It going posted technical everybody. well. community on quick whether can but and vendors We're website call be traffic is overall the throughout day the our it was apologize analysts of our making and weather

I want some I'll call With Jared's for technical everybody question. into experiencing may that, So just to who difficulties. have the been advance jump apologize who's on in

the typically to going results and But in. HSA jump enrollment of make when then as Rine So takes is the in make to comments a fourth The thanks couple ask it seasonally. you Jim for ultimately season those see is on a place I'm the is second quarter. question. and quarter and first track business the

remains your you had a answers are season, the that anything we've we've the So question. all don't as if add pipeline and to that strong I in I indications think want had past, And to enrollment that. know, so strong. Jim, mostly

Jim Rine

– have a lot operate there've we we yield, pressure say for wholesale of tabulating we're model model. and the primarily the really I direct at – our competitors also our that, still in growth that, invest. accounts the model seen But in come comments those. you a of the but know, would model. still under and just business as and We'll not direct continuing a seeing But to especially in we're regarding we're year-end majority been still have

Jared Shaw

the I Okay, But balances guess, when the this line of the average in then line, that can for were your outside And a this the understand transportation happening at appetite yet. lot factoring look you at And say factoring on side? they quarter, is I you for charge-off here? what's quarter still end. in growing can't from thanks. factoring And you – there's

Mariner Kemper

our proceedings all, any factoring in my the would reasons are commercial of anything an other to can't for as into Mariner. factoring come because in The issues taking about I did we related to isolated Thanks expect you And said question. remarks. business. isolated we remarks any the for in credit that in, factoring the see details challenges sales opportunities so and combines efforts prepared it with along portfolio. for through distinguish business related, about within what it's is the would This industry finance to particular this event, credit et say our not of place, is other the that, mentioned but cetera, transportation a our I credit this or don't first go that

full business. providing to bank factoring, commercial middle and the We're a market services of et mezzanine lending, factoring, a far As lending, based it's asset we suite love products cetera, company. as for a

the we business. So love

We expect to business. continue to invest in the

learned. and that here improvements, We've lessons will business. lessons learned stronger but about we the excited have on then very we've still and get We focus

Ram Shankar

Ram. is this Jared, And

add to Just your question. to

much not charge-off charge-off XX/XX, as are so right, fourth was by on impacted You're the the the the in averages quarter.

Jared Shaw

associated or a Okay. And factoring customers really the generally? product, are clients with or specific deposits there any loan that is

Mariner Kemper

are much. all not we given fact It's cases, business, There successful that's some, are in the in not some but cases. a national but

Jared Shaw

you. Thank Okay.

Operator

Our KBW. next question of Chris go McGratty ahead. Please from is

Chris McGratty

a the the the exposure. the of are the If quarter, I and period speak It the Hey, you're short on credits. collaterals seems of like of on in unusual a believe the would Any Thanks. back this seems great. but I $XX morning. good for million, Can in you would to Thanks pretty be of in go XXX% Maybe bank atypical concentrated charge-off nuances, that, it of comments to kind the these term of very business to these don't the about end kind given granularity talking larger And of you it's be a question. knowledge then seem have loss little associated. something while portfolio? to $XXX million could factoring loans. speak I usually ton the also

Mariner Kemper

in that next significantly you. largest loan This portfolio. the larger is thank than loan Yes,

that the level or Fortune in works. So a loan, us it's through buying looking credit cases, through how business it ultimately, the debtor it's book, in the not how looking receivables and understand at really looking so XXX larger And that receivables, would that can for business to really debtor. the factoring, you're you're the each of about you're to or like up factoring it's really and and large the debtor as receivable it's is in to the companies most amounts really Company ultimately the you companies not an but you really line approve unusually approve be sized set unusual the works, because the loan

go So ahead. – yeah,

Chris McGratty

sorry, Yeah, Mariner.

XXXX slide it's it's you was and when million and $XXX – about tripled. bought around portfolio Marquette it in at roughly Looking deck your

So speak quickly, big, I'm you loss low. in were too the wondering big growth. grow rates also could it Marquette kind hindsight the that perhaps if a to, historical very of, bit did had but little

XXX% does become loss? And it so, with how struggling guess I just, a I'm I

Mariner Kemper

Sure, sure.

So what been comes of limits, us which would to doing what size to larger make sizes question you have really company this and to capital, our about power the smaller your that, legal to the prior is loan us first loans. acquiring business the of really lending allowed loans us from meant, acquiring how go answer then our

the grow was from was the of use was capital, it that companies to Ultimately, the lending of us to the allow beginning. the intent to power deposits, So our use to allow our to our combination our legal us actually business. use limit

the expected than growing to what and desired they exactly were business and grow it faster happened. that knew and we is So

your was what question? second, The second

Chris McGratty

the the on relationship works, XXX% just way Yeah, lending loss.

Mariner Kemper

given have in are. are incredibly you a kind part I'm into unusual middle that detail We would us loss unfortunately cover we fact we of for we how kind be that which more so can where XXX% a go remedy. gets give remarks to lot the the it about can't given Yeah, and far the details, in of that pursuing in of whole

say, So lot really that. remarks, to XXX% whole What about more my isolated is in I that just said would specifically issues a I as can't this, the are credit. that this caused very talk we

Chris McGratty

kind Okay. of at X.X active left, is million buyback a to Does could you have say this just in was Thanks. capital a you capital if pivot And M&A maybe about talk hear bank return? distribution to priority met little a you surprised control million you – Maybe you around could If say and terms the a of the I all review? bit still kind have minute. pivot all of for I'll shares does minute, X.X this follow-up and to offline. I are just at $XX discovery million, pretty think at I – and a just the

Mariner Kemper

continue it capital I the would use the I at capital Yes, to choice obvious my top evaluate to business. best of in to uses in I still and all think said your think this, reinvest as is be of I just remarks, of we mean, your of of

be those that, to look opportunities continue grow point things. about maintaining continue is our event so I in and focus on certainly our business and always isolated an business. And evaluating to for to to plan And this is we M&A our and that build the think we invest

Chris McGratty

Thanks lot. a Great.

Operator

comes question Our next of Stephens. Olney go Please from ahead. Matt

Mariner Kemper

Matt. Good morning,

Brandon Steverson

Steverson guys. Hey, good Brandon Good for actually is This morning. morning, Matt this morning. on

Brandon Steverson

Good morning.

Ram Shankar

Good morning.

Brandon Steverson

into give that much what in not around I did isolated, know this the is should breakdown details the borrower. more some maybe us and situation? said, you of that the go controls XXX% been not Can a you the too can you side there's have Thanks. control on remedy place and that

Mariner Kemper

Unfortunately, sorry. a No, think again I in and proceedings can't et the question, the public given the pursuit remedy, spirit go I of into of setting. I understand that but cetera, really

Brandon Steverson

fair before the it enough. how Could max us what was got just you over been? Okay, have big line the should tell

Mariner Kemper

to got Well, whole charge don't thing the – got I it and off. I up $XX.X to that's and we It XX whole know million the mean, charged thing off. we

Brandon Steverson

all Okay, me. alright. guys. That's from Thanks,

Operator

Nathan go next is Piper of from Race Please question ahead. Our Jaffray.

Nathan Race

guys, good Hey, morning.

Mariner Kemper

Nathan. Hey,

Nathan Race

discussion, Coming growth guys back year. this growth year, put last up on good you from loan obviously the to X% year-over-year, X%

So just quarter, than here little this payoffs that higher had we given as how what last well. are seen mean, about fourth you growth. paydowns the and loan credit quarter we've guys quarters in thinking Obviously few the curious, just I were

how XXXX? and into loan pipelines of, So growth about guys kind heading are you feeling just curious,

Mariner Kemper

our growth Sure. connected. not loan Well, start the event are would I first, credit and saying by

otherwise. So we wouldn't the to take taking can we risk we continue that certainly highest to grow at without our cliff plan loans

In and the talked the that expected come to up we're paydowns So nothing what's that's about little pursuing last growth. a about happened. bit, has and we how we fact call, payoffs quarter's changed

do we The growth more you payoff to the are add seen saw good. in having outside that the I'd be to in what are we've is levels levels, loan that? fourth for So you the normal want believe quarter success. And good of that, us. to And, payoff/paydown say Jim, pipeline teams

Jim Rine

to the Yes. we a in Nate, I where market. we've have each grow room in say this Jim that just are and already is Rine. would foothold, we markets established

C&I in doing. market saw have will not business, like good. You continue while in estate, real And poised well what payoffs, the and pipeline we're we've loan in each nice to been traditional just growth our to we looks continue we feel

Nathan Race

I to basis Okay, that’s And fees it Ram to of previous the points. prepayment X said X the appreciate back you think comments was going helpful, impact your that. on margin, around

curious from relative of up – how Just kind third stacks quarter? to that the

Ram Shankar

the was points. So about basis increase X

prepayment I loan fees our payoffs also think accounting there's from we were have early fees necessarily. we and in we specialty some that X that basis purchase points. lending And weren't They businesses, including got, saw. they

impact two point about the benefit. that's last probably margin quarter, five quarter, So to basis this so X

Nathan Race

credit And then going to understood. just Okay, quarter. the back just the lastly fourth event in

in kind of course was the Just there year ensued the that charge the in more of curious to or was of late deterioration there that or in if any kind January fourth you here quarter? you other abrupt kind take kind that of if of did occurred guys the caused that XXXX event in here

Mariner Kemper

first so we're obviously off result. – I saying there's learned to in all, start want this think disappointed lessons We very be here. us for I by Sure. to of

stronger. to get We're an will as this always opportunity, as we use have. We going

long that kind been when the have that sits the have and at we books had time. period do down the over of team long figures the is mirror we of reasons one book processes out same credit history a the our the reasons time of period One a how strongest that's over we overseeing to we've and loss, themselves of do that of had looks the make and in who's we stronger, a have

that slide XX deck, up in our total the ended Page quarter think pretty point in from I So remarks, you would if look to prepared you'll commercial made of make my learn is I at loan that see is we to $XX which that for I fourth But what important I point is will want being lessons charge-offs quarter, this. a million. our

charge. see Can't credit do you this million for $XX this would – the in been outside $XX but quarter. of million we to you, of have So at you that million up commercial can the a have $XX put that charge-offs against math for

in You outside this to the we And an of was event. underwriting quarter of the the kind that's looks can back like. of portfolio not were it what having And kind rest issue. of

Nathan Race

you like it Mariner, kind the of was an sounds issue seemed through So of there performing XXXX. January. like right, just or towards was hearing well that if I'm credit in occurred most year-end It

Mariner Kemper

I'm going the but into specifics when to we when trouble, was exactly quarter started it not about see off. Well, to we get charge at of it the end to decided

Nathan Race

appreciate the all thank guys, I Understood, color you.

Mariner Kemper

Yes.

Operator

from question Raymond of The ahead. Instructions] next James. [Operator will Long come David Please go

Mariner Kemper

David. Hey

David Long

Good morning, everyone.

Mariner Kemper

Good morning.

Ram Shankar

Good morning.

David Long

on been and year you can off and at the you duration? been you're what maybe securities you What on you've what a and the them little duration rolling Can little buying there. it Ram, bit securities had a exchange of if looking versus is ago? have provide extrapolate been on in what's putting us bit extending may versus let today what that a it color that know on portfolio

Ram Shankar

Yes, so the in roll-off well. deck yield as and we a slide disclosure our have

months about If roll-off to the first is back quarter, you the at We took in in the the before down. couple going came the fourth early look yield be tenure quarter next advantage X.XX%. of

well, we today. purchase that dropped were quarter, X.XX%. and is you CMOs about probably at yields X.XX% yield our same for If to look So longer-dated if fourth the they portfolio are portfolio, as these money X.XX% some at the DUS bonds, buy community new

David Long

– be then XXXX, looking that you. at you do going or outlook this you specific, got I the expenses now any what Got maybe planned past. And have to pace secondly, of know us investments you thank in Excellent, Can in that the this right are infrastructure you've remind talked IT spending for year about expect of XXXX? the IT it. on and it, for our some

Ram Shankar

and we're not spending and giving about don't XXXX with year are facing keep We through up on, the we it and more making we we're last where our what to that customer doing been resiliency much around to business comments made sure needs about how sure we're topline doing cetera. on in to been et up make sure investing what straight we've it color be make but investing guidance exactly some what technology, we've is have we –

those organizations making investments with that big been up keep have we've So to budget.

we've we to to need So been do stay competitive. what doing

So to focused we – would forward. back on not I looking really specific would operating What is leverage I our point know run being a operating point like on that's leverage we're have to expenses. to would really you committing rate and not say and positive what to what you're committing that you

David Long

all Got you. Thank I I that. That's have. appreciate it. Thanks.

Operator

comes of from Please Our next Poonawala question America Ebrahim of Bank Merrill Lynch. ahead. go

Mariner Kemper

Ebrahim. Hey,

Ebrahim Poonawala

Hey, good How are morning. you?

Mariner Kemper

Good.

Ram Shankar

morning. Good

Ebrahim Poonawala

I just Mariner. question, had one

heard mentioned comments your on this. I So times all lessons from like and you learned credit, multiple

be learned internally could that. clear this those much be something is not want processes, lessons have maybe changes as are that there to in we that that done thoroughly that it, just internal so about Just personnel away isolated to lessons take was we meaning the that on if so some I needed done. message is of you're one from terms clear so the reviewing of you learned, does that or apply our no standpoint, should needs

Mariner Kemper

it that that will on that our it I reiterate a is analysis so Absolutely, isolated, is period reflects one. isolated. put

As that stronger is and look – to it and relates for to tighten gets smarter. reviewing doing processes, I'd anyway opportunity time all our us the opportunity – it gives we're certainly to say this

reflect that, or those do. specifics the So about really we as can't I our proceedings to with on we relates will and will specifics pursue done what that Again, given it have remedy. you do need to

Ebrahim Poonawala

if on any things could this few that be – again extend you I to recovery we point? Did there's a missed at I'm do some And that Understood. sorry this. say there you possibility a

Mariner Kemper

pursuing. are We

are pursuing you or absolutely cannot tell the whether one successful. that. we I will way be We other

Ebrahim Poonawala

you. Thank it. Got

Operator

Please follow-up ahead. is question go next a KBW. McGratty from Our of Chris

Chris McGratty

the want Thanks Ram, tax the to non-FTE, right, that's to or just Thanks. Is for XX%? XX% rate, follow-up. clear. on the be a a FTE that

Ram Shankar

XX%. XX% tax to rate, GAAP

Chris McGratty

the from credit to either either was Okay. fourth should there credit any we kind because that the thinking And adjustment about of then of be quarter comp the the kind or of comp expenses, incentive second, or prospectively in issue?

Mariner Kemper

Could you I'm not that? repeat sure.

Chris McGratty

management of of some the the sort incentives reversal that because of your credit Well, the component bonus I is either assume senior terms credit was out, or in of once of incentive comp. there a something, team lender that or

Mariner Kemper

Sure.

– So, see supposed program works the financials. related financials to, – And incentive way those are they relates our they're to our the in to to incent is for you incentives, what as fourth their people quarter our you've work mean, what I appropriately it seen incentive for for behaviors. how our programs

Chris McGratty

maybe the Trust business And Trust/Securities Thanks. December. that's of with is much less the that line to you of end kind Okay. being market? market of How versus spoke the recurring that about, to kind volatile soft market driven in of kind the then more finally Processing

Mariner Kemper

just clear, Hey, had said be maybe best a its in spectacular to even history. Chris, the we December, Trust Corporate

you a accrual primarily So adjustment. what I in we $X.X our was said. more make call just adjustment sure slide and of deck, want million understood Trust our business. Processing that to we would alternative The in as said Security I an there

of kind in one-time it's So nature.

about margin points spectacular fourth is a about to quarter the the in a as a points. talked on basis DDA act business, why had influx huge why momentum X of that's fourth quarter, which is that's as which by Corporate basis But we saw well, balances benefited basis. X we line our of the I down in aviation in So terms trustees, quarter-over-quarter TSP Trust,

Chris McGratty

Okay.

Is call $X.X that's that Just the Ram, about the of markets. it, kind you sort that think it? way to million, of effective

Ram Shankar

a There some or adjustment. December. a look the multiple I services market would businesses component especially it have The in management you accrual call more as wealth it's month did of if whether fund that No, headwinds is have an at markets component.

Chris McGratty

you. Thank Okay.

Operator

our I conference turn concludes This like back question-and-answer closing Kay would session. any to remarks. for the over Gregory to

Kay Gregory

we any you with call as This time. can replay Thank joining be contact can your and and you interest questions. XXX-XXX-XXXX website, Thank UMB at for at follow-up you. us Relations always, Investor Again, accessed appreciate today. via our

Operator

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

You may now disconnect.

UMB Financial (UMBF) 30 Jan 192018 Q4 Earnings call transcript