UMBF - Earnings call transcript Q3 2019 | UMB Financial Corporation

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Operator

Good morning, and welcome to the UMB Financial Corporation Third Quarter 2019 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Kay Gregory, Investor Relations. Please go ahead.

Kay Gregory

to quarter welcome and morning, our call. third Good Bank CEO; Shankar, comments the our Kemper, of our our will question-and-answer Ram and President the CEO Rine, few Mariner session. CFO, available and share and Jim also will be results; for about a

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

factors that in about may Details differ cause is our them contained to SEC filings.

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

call online investorrelations.umb.com. share share are diluted earnings materials basis. available earnings Our at on are a on All this per metrics discussed

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

Mariner Kemper

quarter Thank per to you, or per both million us Kay. quarter, joining XXXX. the compared third second for XXXX Thanks earned in $X.XX today. $XX.X We third quarter everyone of share share and of the in in $X.XX the

see loan a year-over-year. growth on balances X.X% and increasing basis annualized linked-quarter continue strong We with average to XX%

of For in traded comparison, have increase that to-date average shown the a annualized linked-quarter loan banks have balances. median reported publicly X%

during and was banking biggest third $XX private estate sheet real consumer estate. to quarter to million balances our for our We our originating in area in growth the quarter, real business. Commercial the balance the added followed contributor both the by residential in average mortgage

performance. who production as strong few related M&A well to experiencing experienced Our a C&I paydowns book, clients by activity while was impacted some solid by still prepayments as have

the one to date. production production total portfolio, the third For numbers loan top line strongest was million, $XXX of quarter

an expected $XXX certain paydowns, and quarter or loans, exit were of loans. X.X% payoffs total of Total which million this factoring include

our fourth see pipeline to and in continue look the quarter. opportunity into remains as strong the we production markets We

X.XX% September X.XX% charge-offs year-to-date for charge-offs a period to X.XX% average on And were the of basis, compared Net of average for same loans. net quarter loans XXXX. the were just in

positive and included from servicing, income, looking Trust results asset Banking Wealth, were fee Corporate Private Now at in the mix. Investment

included outsized will market-related COLI with sale third noise some of gains along and Ram detail including on earnings equity As income securities. shortly, adjustments quarter from

we positive seeing trends. items, are those Excluding still

Our win fund services teams managers taking continue asset servicing of both in among space. business, advantage the to consolidation, and

of We launching new at rallied a are as existing market bond are pace. some we gains end bond taking seeing fast with And larger quarter. deals conversion increased experienced the clients the and trading, activity in clients the near products

X.X% our quarter. day quarter, to grew interest extra and securities due along average an in second income the largely growth with to a the compared increase Net solid X% loan in

points. However, net margin XX compressed interest by basis

were XX% loans impacted of Fed the sheet, each tied with quickly our the more short-term most to quarter. side the year Asset of that anticipated of cuts balance than yields about that given liability rates reprice moved ahead during

changes working as adjust competitive we're needs support on loan strong naturally those pricing based our results our pricing, While to liquidity in lag rates well deposit loan pipeline. as to

that hit But, see no deposits of campaign our benefit the from quarter. impact so a that we'll rate are mid-September, mark its market portion potential. money see one-year with deposit full clearly the of in repricing in environment, XXXX The of in our index a base. one-third downside mind declining we'll In next keep DDA

clients positive with our and optimistic. has our cautiously conversations data relatively been Economic

up However, of we leading expect XXXX volatility a the elections. lot to

rates. during protection cash executed from earnings to flow reduce Given the the impact small risk, the hedge a longer-term with interest million rate murky downside $XXX near-term environment, balancing lower quarter help we the the

supported our markets term in language. floors of CRE the With certain institution loan loans, the haven't exception fully of

However, pricing. in maintain our discipline we

economic our cycles. business many said over we've weather years, all the is to As times model built

income, focus yield these While on interest loan our mitigate to income what environment peers. Coupled this diversified should net and fee challenges, to from headwinds. shape some pose with interest sources, us should been our low of continue to the enable help grow curve us strong the pipeline counter rate our we've the hearing of

Now, over Ram of Ram? I'll for discussion our more turn detailed the results. back call to

Ram Shankar

Thanks, Mariner.

For from offset quarter quarter, by strong mix the of lower impact X.X% changes extra $XXX.X short-term on by day net securities of rates third the our factoring and balances. higher-yielding loan a The and and other basis. was the growth a some during were the increase income partially interest million, representing an including payoff and linked-quarter benefits

asset points X declined cost from to quarter while the points points quarter. a in of reduction for interest-bearing to declined interest-bearing the Earning interest prior X.XX% Net was XX down basis basis points contributing cost linked margin liabilities. quarter the X.XX%, the basis from XX yields basis deposit five

mix X by loan and X X points in in businesses institutional funding Margin mix basis changes approximately extra X point basis to related from AFS our and to basis due including value from related market to day benefit market was funds; money changes higher point negatively impacted balances our repricing basis points the from the and in less portfolio; free our quarter. changes;

flow in repricing in the AFS quarter. added basis points was approximately as invested book, at Positive roll X third cash the off X.XX%

hedge, was mentioned. NIM by the impacted flow cash Mariner slightly Additionally,

rate to month declining basis a late a to month entered to The five-year million one hedge LIBOR value floor one In has the floating X.XX% term. hedges indexed interest on $XXX The August, rates about loans. notional a of margin. commercial of risk with impact point into and X.X the hedge we of was

the and approximately dynamics fourth of compression the expect X to market net interest margin additional would recent for X we an afternoon, basis expectation cut announce this points will quarter. Fed that the Considering

funding. will variety for pace need at our course, Of trust overall loan outcome aviation our sheet mix business potential depend the which factors growth, variability the for NIM as actual such the LIBOR of a balance and and moves, on in

on increased basis, and balances. X.X% deposits total institutional a money in largely market linked-quarter Average commercial

slide composition by on shown deposit XX. Our is source overall

Moving drivers slides on to fee some income on XX Mariner already statement, and and discussed XX. opportunities shown income the detail we're are of the seeing the the in specific

lower and $X.X has reported noninterest equity on million lower quarter, the compared reported offset in $X.X the line: Total $X.X to which derivative other in were decrease Included lower reductions income income. million alternative investments; proportional a was in of the a $XXX.X expense; in income, the million earnings several of all million deferred in million decrease comp second COLI market-related for quarter. $X.X income

$X driven linked XXb-X quarter and businesses. and fees our trust institutional and growing market million $X.X revenue fund or related services, include or second driven over improved processing Private million Trust money securities XX.X% Positives to the which revenue. Brokerage quarter increased by Corporate income, X.X% by Wealth

X% million the income $X expense mentioned Non-interest expense was decreased for offset lower $XXX.X and million, commissions $X.X I from comp a decrease Bonus $X quarter. second the quarter million. COLI the million for and decreased of or expense deferred

travel expense lease. product terminate Marketing $X.X initiatives. increased changes. items detailed building development related million expense million These a expense additional decreased and a offset business XX of timing fee were and $X.X by of portion to advertising of partially related Slide ongoing paid drivers to contains of a due to to

bonuses and including card variable As expense or expense reminder, to categories nature fees revenue-based correlate a are tend of commissions, volume and and in our several processing with bank activities.

for XX.X% tax third effective was XX.X% quarter year-to-date. the and our Finally, rate

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

prepared over now operator session That the the remarks the concludes call. to to turn our I'll Q&A and it of begin back

Operator

We will KBW. Instructions] The from Chris Please go with session. ahead. now McGratty the begin question-and-answer [Operator is first question

Chris McGratty

everybody. morning, Good

Mariner Kemper

Chris. Hi,

Chris McGratty

send? light with you starting a little or top-line the more we in to a Maybe, Ram could growth your year? if industry see potentially and talked of Mariner. you NII the one remarks, Is message that assume prepared I that NIM cut bit color. Again, that is in flat kind looking facing. of think pressures Does today about trying more that you're I'm kind next growing we In get of for to

Mariner Kemper

pipeline would think, for I you to that quarter is good look net strong. we expect saying we would fourth what growth outpace on interest margin have that the And be next as looks Well, only actually the historically growth pressure. the loan into that income given quarter a were and continues

Chris McGratty

Okay.

NII it. next growth quarter. Got So in

Mariner Kemper

Yes.

Chris McGratty

Thanks for that.

can can quarters? left? And is the might in interest-bearing rate deposit deposits And that spot have in next How deposits terms is you you where put few then some reprice rates, to much elaborate index. the maybe In how context September? been of going the around in

Ram Shankar

take I'll Chris. that

XX So just if down one campaign the you X.X%. different expectation because for look Obviously, from interest a in deposits talked will raised we points about at basis repriced be money market the rates. those cut we about first by deepest we the that that

XX% cut rate us around XXX on would you And question with target your indexed call at to our the we So today of I of hard that. the obviously, rates market if to kind deposits of look funds we'll last money what approximately rate. some debt it's then a to XXX closer reevaluate say is the

Chris McGratty

just more Fed around trade basis to X% spread that kind the any points of of think, new around I your funds XXX it great. was and I purchases, Okay, is securities one The spread the margin on Maybe if could. it's cost between X% repos about stock? contemplation is spread? positive shrink is you keep will the that that that on in expectation Or -- the you carry given buyback might Is net. there if

Ram Shankar

loan will like growth talked it just A lot of Mariner depend on about.

definitely an rotate there's opportunity It AFS stock. out definitely buy for of to have securities. back the strong We pipeline a to reason won't so those be

I is to support businesses. leverage a quite call all collateral needed it our So much wouldn't This trade.

But our shortfalls look happen portfolio our portfolio to is. loan the would sheet way. I that balance we expect stay So funding exceeds, closer where fund or if to to it if to might growth

Chris McGratty

very Okay. Thank much. you

Ram Shankar

Chris. Thanks,

Operator

of from America with Lynch. The Ebrahim go Poonawala next question ahead. Bank Please is Merrill

Ebrahim Poonawala

Good guys. morning,

Mariner Kemper

Ebrahim Hi,

Ram Shankar

morning. Good

Ebrahim Poonawala

appreciate us wondering more want just What expense. doing at expenses side the few impacts I you bank? look as if XXXX if guidance quarter kind on you quarter? we So don't what savings. could and one third quarters? just there's seasonal but if think remind are And in Ram, any of terms do And of of speak we the should expect just terms next to into -- don't investment you I to you at the over cost bake give other you term longer spend of talk in When was fourth us; that sort the the can about you you

Ram Shankar

about just impact talked in of our in we one so particular a terms we third because million or terminated buildings. So lease of $X.X quarter

with we're overall. look that's doing at what expense our to consistent base So

real EDP from with We're a no of investments. impact model there's other purchased timing more so than some shifting And to some seasonal software our of expenses.

but in investing our because are So remain franchise. those those at the we little in levels continue we'll to quarter up bit a third spiked elevated

Ebrahim Poonawala

rates do do of, outlook Got expect in where back that you from it. Or of And you flat? to, higher margin next sort interest sort you ratio given, rate the efficiency year do standpoint? of, trending expect and your a given terms of the keep see we're kind and

Mariner Kemper

are you This is this morning. Mariner. How

Ebrahim Poonawala

Great. How are you?

Mariner Kemper

Good. say, you not I would as don't mentioned earlier give we it's on that. guidance --

more without to our possible of, you mix the updating that on look profit towards as customer that I manage think versus sort as lights The upgrading mortgaging to of should and than XX% the it I generation on is and experience next as important the keeping tightly year. spending about the more and mix, future it's expenses systems. shifting thing think, positive expect us into and we

the So important that's most thing. probably

stuff growth load we important say and the focused is amount earnings So and expense way on so we look right company talk on that it I on at about the being less long-term see a focus we absolute bigger that the more the want spent we sort have. of would to

Ebrahim Poonawala

already it could some or margin the do happen about like margin after? Would and relief? you -- last quarter stabilize if that one a we once relative the the Got to curve steepening so anticipate as Fed in think immediately you just the interest Or cuts it. a margin you get Fed need how this, do one to talked rate And but like sorry, about would the you stops? quickly the for

Ram Shankar

churn. take time right? at is will just it Clearly lower like theoretically the bit because -- loans out there yields a just little way on replaced if you on. what's where AFS we're is see are churn a being more positive it me Let seeing was point our just -- always and that at But low positive stays some in reach equilibrium. XX-year what's could off between still portfolio, as rolling pretty rolling the churn There

than So might just we tail Ebrahim. longer have one two or a quarters

Ebrahim Poonawala

Got Thanks my it. taking for questions.

Ram Shankar

Thanks.

Operator

question is go The from with next Stephens. Gordon McGuire Please ahead.

Gordon McGuire

for Thanks the morning. Good taking questions.

Ram Shankar

Good morning.

Mariner Kemper

Gordon. morning, Good

Gordon McGuire

us quarter. this in you the trying in I'm what what sheet with balance can pretty average good deposits fourth consistent this anticipate Just quarter? the whether you've remind for just here. did growth And just So the quarter to being wondering deposit you is if usual pretty past? the was seasonal -- swing the seen

Ram Shankar

quarter deal flow on Yes, servicing. what's our the businesses, Aviation biggest They market from volatility in be to in Corporate tend was because deposits of Trust this and institutional and on primarily going volatile depends the it Asset too.

hard to that. it's So predict

deposit pickup peak come they in In usually But growth and in fourth and usually public there's slight funds then quarter. in the second quarters. a mid-December first the

So you'll some market happens the benefit we with talked about seen be is the see remains those then side money And that what campaign from balances. the what that. other rate to to with on cuts

Mariner Kemper

trust Aviation business… And with what happens our

Ram Shankar

Correct.

Mariner Kemper

to …it grow. continues

we'll And plays how so that see out.

Gordon McGuire

about the lower deposits talked you've you've quarter. capture lowering And much I'm last to prices kind hard softer of those? repricing few on and from about just but you more wondering of And sets campaigns market in able talked had cuts? beta maybe been there you the indexed index, last that the what how money the

Mariner Kemper

We'll see there. three few areas a --

got sure of that space the competition. watch week continue which a don't get front down traditional make We or as we to consumer we You've two out usually to the wait price in our competition. will

that's piece the the couples private banking. that So with retail

are business Then I down kind that we would of make don't bringing while competition we keeping it come get our and diligent and do ahead just sure we negotiated we'll of of it, will we're that do out all bid on so manage that down and and the we it stupid. corporate something have of say to that account kind a basis. that about

Gordon Reilly

built quarter bit can you And -- Got you it. you And into the bit. non-accruals? increases a this quite like little a substandard can came then reserve the looks it and charge-offs down in but the go

levels? about going off thinking So forward maybe be how we charge-offs should these

Jim Rine

off. Yes, the this were and pay it we it headed is end. Jim. put on paying on quarter and had we knew before knew large we went we when for on end subsequently information after timing a non-accrual off We credit the quarter that based did But ahead

came back after XX end business within days. right So down quarter those

was accounting it put knowing So knew just on ahead we did really we what and based rules on it non-accrual. go when

we more back and our charge-offs mentioned be feel feel down did see after that came tick going to certainly more felt up we we levels you the like quarter So not end. into quarter that you'll And guidance what historical give to we forward. going but to this back it historic like right be normalized portfolio had but like we have see that'll levels things would to

Gordon Reilly

you. Thank right. All

Operator

from The go with Piper next question Please is ahead. Race Jaffray. Nathan

Nathan Race

morning. Good guys. Hey,

Jim Rine

Good morning, Nathan

Nathan Race

quarter? loan just Going you rate if back to the weighted curious the had new on discussion, the average production in margin

Mariner Kemper

Sorry can you do that again?

Nathan Race

rate The quarter? average production loan the weighted on in new

Mariner Kemper

an guess into. -- a perspective, been able from environmental We but we've we've don't haven't to we that we get seeing spreads really that hold really competitive say a guess something That's not otherwise for reasons. into really gotten get -- of into I say from kind same been competitive the I'd that I standpoint. I'd

Nathan Race

to around I'm at it. during XXXX out stood third portfolio get if yield are the the on for the new coming quarter. to guess, Got I loans just a X% or that trying books sense below yield portfolio flat the looking

Mariner Kemper

back likely just by the -- mean, are right? do rates to about what come down that it's to talking -- loans guess because I rates I Well, going to the mean of going coming just be so we're to to themselves obviously down. there's able you're be I are on if coming because yields with down, dynamic

things other there's to with margin pricing related we many successful are and at play spread to relates and how things. it as deposit But

loans generated So but new will sure. loans the -- for down yield on come on the

Nathan Race

you in terms Right. -- it. just in elevated Got growth like it a I average given in had Understood. And quarters that little they're understand here the payoffs then late the XQ. of seems

have trending payoffs how in in So are if just thus you far XQ? any curious of terms visibility

Mariner Kemper

hard in but don't don't out predict the the just keep would stand been and changing. consistent. X.X% that noticed see that pretty to or able other It's see you we've pay-downs, two one the that anything As activity. quarter I between of regular way payoffs to

Nathan Race

Okay. year-over-year. The line. changing folks one was ask just Understood. and And trust nicely And in more that well I up added gears. I have that revenue in you have if business and could quarter-over-quarter guys corporate as pretty know some been investing

line about in just XQ So think curious that and into should perhaps growth we XXXX how well? as in

Jim Rine

Well, as is Jim. this you know --

but corporate the activity quite with our we then Trust continue team. continued expanded with And made for As continued and traditional expand Iowa to seen to acquisition Corporate frankly. we've and Aviation business footprint we've we you in that in we've with of know throughout that continue the our we team team, invest the the trust closing that our look to

Mariner Kemper

Yes that deal lead up excited business actually the tables spot very in one the recent we're come have size. we're in quarter about

three but number relates of level So size issues agent it the went from the as of to number doing. we've of deals we're one on paying been standpoint up we

So that's and we're the pretty and that's larger and into we York deals like like up exciting. -- down starting New as to east markets that, seaboard do places move and

business just underway. Trust getting is Aviation The

and space. nearly XX now one in We just people building City presence have we year a commanding within Salt in are Lake that

excited. very we're So

larger consolidate the that business We we that consolidating in our and business. players the look realize of continue barely go-to Trust are as for to many and to business a Corporate ways for they peers are

a player national to that -- basis in a a on to major be expect be We business. continue

Nathan Race

you. Appreciate That’s Got it. clear. Thank color. very the

Mariner Kemper

Thanks.

Operator

with Long David James. Raymond ahead. from is question next go The Please

David Long

everyone. Good morning,

Jim Rine

morning, good David Hey,

David Long

the been curious progress business. made we for you looking be In improvements side any your in side retail that the increasing business? And talked there? what of guys about retail has on have of And the recent the investment XXXX on conversations should just

Jim Rine

Hi, Dave. is This Jim.

and teller out new within will our have days. beta to be in XXX rolled system-wide XX we next So that platform the

Our out of holidays, to able everyone new but the online platform be until fantastic. likely live we banking will year won't is after due to that in December, the which to roll Xst most go the

have to next a opening within online broad-based days. account XXX able that we'll pockets in are the fashion but We do in

place of I have have first should we up but to So say the upgrades XXXX. caught our because in of we well do most and we XXXX like -- in well half not will feel in

to we without will the -- most of through upgrades the invest be most year end the and doubt. So continue technology of before a

Mariner Kemper

The make effort that. to close very are excited Everything from updated us is competitive We're where largely openings gaps. online we'll be account just and upgraded. about with

Jim Rine

Yes. of guess we for that the from some I we and there remodels. refresh And better make have then retooling then branch a experience to have customers. our And space

David Long

or it. put change anything the a whether Got rates in a And is operating in with slowdown some pause the of these investments? that environment in there economy would

Mariner Kemper

more Well as look all about the most would our across entire that question can that I controlling mean, spending would extreme diligent of think cut I at that And earlier, our across our would I activities. expenses without mortgaging and and remain very all we broad-based of said business. be our future level we --

Jim Rine

been these And do. are the consumer on a and But already is we're and consumer vital space have what franchise we we to through. the bank though implemented

this. but might not that to look else projects. these there we was going complete of at something certainly we're so And If any

Mariner Kemper

pace mean up, wouldn't like it do can clearing slow branch or the pace we It see slow currently necessary. not all or but be if can things that pace things I we if but down do - can necessary at whether if necessary. we To we something are refresh to. or there that are of needed be the we clear which -- being evolve the don't not the We those of

David Long

final Got one one it. you And Ram. then for

should level this I market-related these level it metrics slides low look to point? on in quarter? forward? metrics. appreciate Or As going we an some at low are are non-interest and is the for this the market-related of the the But this relates the income at the other them color unusually decreases is we a at Or in

Ram Shankar

tough the depends low, quantify it's to Well, It right? whether it's on market.

XXX of investments COLI Some specific especially tied the to we the these that are index. S&P have

the S&P the go valuations we if and some take can so down, So negative can mark-to-market fee income that lower. have even might

look the because million, other million I at prepared have. on line investments the So investments of equity of the swing alternative said $XX item that right? as the was of comments, and of earnings that If and $X our you COLI we some

was million of lower $X capital and Another markets just derivative because income.

because to so driven you that run of much by rate it's a really tough on So of it one, markets. is give

Mariner Kemper

and But is the to business the reality for there is revenue really growth refrained as income we're demonstrating it that non-interest the in relates and are noise. lines, these

you into can you You fact on back perspective, reconciliation own, had can of your see to look trajectory actually growth in the allowed for which income a non-interest at the that -- if sort do not from we you. the I'm

you back do -- but you page. can -- can reconciliation the into yourself So that in

David Long

it. Got all the it. guys. color Appreciate Thanks for

Mariner Kemper

David. Thanks,

Operator

question with next from ahead. go The Please Wells Jared is Fargo. Shaw

Jared Shaw

morning. Hi, good

Mariner Kemper

Hey, good morning, Jared.

Ram Shankar

morning. Good

Jared Shaw

a I maybe at you or flowing investments you seeing is over investments strength picture business bigger Or commercial questions. look middle impact when just guess the level? at customer couple broader CapEx environment expansion and making that to market a the tariffs any really are from through not One concern from point? there, or the this lending just the of

Mariner Kemper

are to earlier stable, to good. generally to growth as levels or pass and some customers speaking we from say are and on there, period impact costs some either to industry the those stable. utilization over it one talk say those from though said or able would timing around that our investments next another and nominal, remain is I around I levels on board ultimately, There But regional cautious tariff costs stuff. remain speaking, is would we've is pass the seems made, being they're a borrowing meetings being one go of sentiment the issues able and as general and pretty kind -- have such, to fluctuations Generally optimism.

the I good. is So general sentiment think pretty

construction the across transportation And indicator backlog. to very starting and they're is very related would a deep example leading swings. for against are of past like are And There take obviously were sounds and there. strong pipelines clients that pipeline Backlogs even some construction you strong The is strong all beyond see if you some tell backlog. they're softness. then, juxtapose transportation, to which our the you

So bag. it's what a I'd generally mixed speaking say

Some of said, are the cautiously indicators like you leading even some I guys believe to lead there's would be those but transportation softness, going to optimistic about XXXX.

So or from looks solid. slowdown my some XXXX not or kind be vantage point to pretty XXXX Whether in of not there's remains seen.

Jared Shaw

backdrop Thanks. the the on cycle. around the enrollment health color. side, pickup this enter health the go through and the to is HSA promote any that sort to and the starting great flowing those for HSA That's we then care really down here And the to seeing an plans the Are and the not at of road we're deductible political care? point? high of sentiment trying potential year changes given as changes in Or employer end you into

Jim Rine

is This Jim. Hi.

We to have industry period rest six of the anything Through enrollment seen that back yet. growth. hearing year leads up when bit. not industry aren't that the third But yet. trended a we has to months, the that comes, us mirror to we balance believe our Through the quarter caught the in

Jared Shaw

you. Thank Okay.

Jim Rine

Thanks, Jared.

Operator

question John Rodis [Operator Instructions] comes The Please with from go next Janney. ahead.

John Rodis

Good morning everybody.

Mariner Kemper

John. morning, Good

John Rodis

on of Do question you this you CECIL. quick time? at update provide have Ram. sort can Maybe any a just

Ram Shankar

really, parallel time really hard at We're different team as you runs working this assumptions. dates at is The would sheet economic doing balance and different John. Not imagine.

-- a it's headline be for us from of to more year-end think part don't as hear call. you'll that So material we our going us. it's Know

John Rodis

Ram, balance sheet $X the just quarter. or intangibles What Okay. Thanks. then drove million but item small million And $X increase? that on other up were a linked

Ram Shankar

referenced Trust Iowa that Corporate Iowa Jim the just Trust acquisition John. -- That's

want small So I the we intangibles. that's purchase had a on increase customer press was that. about price release just just a -- that on and There

John Rodis

make wanted I Yes, okay. sure. just to

you. Thank Okay.

Ram Shankar

Sure.

Mariner Kemper

John. Thanks,

Operator

KBW. Chris McGratty is with question ahead. a from The Please next follow-up go

Chris McGratty

is Thanks. capital. a Great. This question on

you I'm and and if building You are non-bank Thanks. declining or of growth update pretty last OCI. thoughts and wonder guys capital Part interested the updated quarter change rates it But inorganic think quickly. about bank on in there? I any there's is talked

Mariner Kemper

opportunities probably levels are you I the it anyway. wouldn't One that capital two country So Putting making different that also to sure for times could our that have mean we through we're best much coming is hurt franchise peak we real at we search successful for do sorry line for acquisition prepared to in which very primary acquisition are solid some good the our noise ways. aside, for the on We do be reason look of that. the want And -- there. opportunities. building solid and

So reason the that you reasons it. way other see are There that that's the obviously main have is. to it

feel about uses growth to continue We good loan other and of our capital.

multiple right its think we base now So capital reasons. good solid practice a have to for

Ram Shankar

stuff. capital. urge you said had that because and a a regulatory what know is you swing talking would million to And look this -- risk-based TCE of just from I at you're TC Ram. Chris, about and year ago, I $XXX AOCI

both And M&A. on capital regulatory meaningful I Mariner and we're streams ratios having sitting would So keep the fee bank just have said and like don't we're which conversations on noise. capital yes, focusing on income

Chris McGratty

was can I your I little just of in in the a If in think conversations one mean, which meaningful on quarter there the range. slip of billion Marquette, markets? the deal deals terms about $X.X to in M&A. bank bit efficiency had Are sizable larger bank I versus you be last talked

Mariner Kemper

any -- we real give can't would yes, that just guidance say interested. I mean, I I are you that. on Well remain obviously -- we

with are certainly team investment individuals. of banks. keeping have We a relationships We

We have we're calling We're outbound efforts. just active. --

Chris McGratty

you. Thank it. Got

Operator

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

Kay Gregory

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

Operator

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

may You disconnect. now

UMB Financial (UMBF) 1 Nov 192019 Q3 Earnings call transcript