UMBF - Earnings call transcript Q4 2019 | UMB Financial Corporation

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Operator

Good morning, and welcome to the UMB Financial Corporation Fourth Quarter 2019 Financial Results 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]. is event this note being recorded. Please

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

Kay Gregory

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

are statements, subject me let you today's all remind uncertainties. of forward-looking which assumptions, Before we begin, to presentation that and risks contains

Actual from results filings. SEC that are any Details other may and differ future circumstances our factors those forward-looking aspirations or about may differ to in in cause them set forth contained statement.

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

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

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

Mariner Kemper

and recap Kay, you, thanks us for quarter joining XXXX year fourth Thank full our as performance. everyone we to today and

I last million team's on We loan fee $XX.X I'm momentum. deposit results solid $X.XX growth months, the include and which income XX back to produce our and ability earned of continued proud or share full As look linked quarter and annualized quarter, million share the grew a on $X.X balances in XX.X% revenue per fourth billion. basis. year on of or for $X.XX total $XXX.X XXXX per the of Average loan strong

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

from by CRE the quarter. banking growth growth private fourth quarter usual of average quarter the for were slightly $X Net both loan and at estate was real than record was paydowns million Total quarter billion. recent payoffs top-line fourth loan loans continued consumer the C&I portfolio, originated elevated this $XXX loans. in and led and in or $XXX million total production residential and the For X.X% more a of

utilization on growth to a in increase year-over-year to of share of continue and mortgage market XX.X% we both Louis, the steady. The compared increase regions $XXX added balances an St. see of market Texas. an remained through underpenetrated top Colorado basis These XXXX.We markets, were for have XXXX, three In with growth and share million our gains fourth the less for in quarter than are as line loan XX.X% us. areas for X% fairly trends

XXXX result activity experienced average. billion billion year $X.X on several represented over amongst XX% M&A advantage levels growth of and by caused been $X.X production of clients. of a both robust increase And bank disruption have our We of XXXX led and to net a as in mergers. growth Full payoffs take to able markets

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

of by the full were in with our line fourth consistent indeed third the did non-performing for And basis, decline balances comments of last charge-offs were X.XX% on year X.XX% with our quarter quarter, historic And loan a XX% charge-offs Net net loans. average quarter. average from loans, averages.

record track portfolio remains well I'm lower of These the and Our proud long-term quality in our and of our quarter. quality the loan provision book fourth diversified, the underwriting. of results drove

asset X.X% statement, to the lower increased quarter income Now interest growth compared by driven income costs. to the third looking funding strong net and

net should rate we strong environment. to interest current help even us loan pipeline As last the quarter, mentioned our in continue income our grow

X.X% continued the we fee saw On income quarter. of an momentum third the to increase side, with compared

earnings municipal increases positive team our in there income. And impacts fixed was both expense investment Corporate underwriting market trust income to adjustments and demand, and and results. related have posted solid revenue. in markets this strong our banking customer increased activity MBS positive Again services which other including along that saw fund equity often line agency, quarter, trading some with offsets, and noise from income COLI drove

million for overall businesses expenses incentives company tied momentum largely quarter, in our performance. third and income our growth, The with the to payments by and the business fee several driven $XX.X compared hiring the to variability quarter related commission businesses to can in increased expense correlation levels. growth Our add and revenue

estimate We growth. of that three-fourths expense the quarter-over-quarter to in increase tied approximately business was

account including invest We which nearing out are platform, continue banking our new to and teller opening the discussed business business. retail of before completion. upgrades, in our the rolling reinvigoration online online We've capabilities,

fourth quarter, campaign, build the with postage XX%, which account we've This credit will and to retail compared retail increases over XXXX on XXXX drove advertising levels. campaign the of the growth year card we originations card In expense. in seen launched some up a the past

Additionally, opportunistically revenue capabilities. teams and to producing to we've been our adding our

example, process. banking in on-board team now rest business of the more For details desirable the of middle are and commercial new these the Lake in on in and in experienced are market professionals a an We'll banker we've area quarters. these cities City. teams Several twin of hires successful group share hired coming Salt

high set XXXX. success closing, the XXXX In in for in our us bar has

With X.X% levels to revenue experienced from current XXXX. moderate rate backdrop, we the in the year-over-year growth likely is

without However, our about we we aren't slowing diligent remain we our and controlling future. expenses tightly focus, can as mortgaging as very

prudently continue trends have revenue an also customer experience, our As generating to to on I will and our acquisition in we'll business but shared improved capabilities earlier, eye and we enhance invest efficiency.

not than estimate operating do environment. XXXX guidance, barring believe better unexpected can typically in the the deterioration give consensus do we While earnings current I material any we

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

Ram Shankar

short-term yields to interest tied XX higher XX% were strong from our of by decline the that loan in declining increase rates. and costs growth Thanks, largely income some drove our Mariner. that The in XX balances loan a yields partially mix funding securities the payoff to portfolio. basis yielding asset interest the of by X.XX% of net Total are quarter, yields. earning asset from offset balance lower loan basis linked and shifted fell loans and driven points benefits point our Approximately variable

fell costs points period. bearing cost total deposit XX liabilities declined month of quarter, repriced in in to reduction XX basis the points in XX One LIBOR the bearing that and the cost interest during XX% point decline basis the funds. of basis of Interest XX loans impacting basis fourth our point that contributing

interest for margin the quarter Net prior was X down from X.XX%, the points quarter. basis

value interest by our net prior a environment. as from the free in points spread interest rate virtually the declined sequentially X While funds at unchanged benefit from was X.XX% their lower declined quarter, basis

offsets in approximately basis balance basis fees. X Overall, was approximately by and XX margin basis mix impacted loan the basis institutional funds benefit points liquidity, X points from points included pricing, excess to changes of related basis XX by from excess points sheet free deposit and higher flows funding loan from decreased driven Negative costs businesses. and positively our lower points primarily from X

our and hold flow about the that points point as we points now, X fed reinvested in quarter. of market the margin cash for compression approximately interest the Considering basis X.XX% AFS basis would during will provided interest rates Repricing the first off to dynamics for margin expect quarter expectation basis was of X net net X improvement rolling at book at X.XX%. recent

will LIBOR balance and sheet funding. public margin aviation our for such pace always, net variability as As loan and overall businesses interest which variety in growth, for fund and the moves, outcome trust on mix potential of depend at the actual need a the factors, our

billion the deposits $X.X largely a by and along rose build increased the market Average build of corporate driven institutional including balances beginning of our in year-end linked commercial business for typical DDA total payments. up on balances and to X.X% annual municipal cash by trust X.X% quarter funds. up with aviation money of basis, public largely

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

million in opportunities income specific of and slides Mariner drivers increase the quarter. of $X.X detail Total discussed the for an million reported to quarter, shown XX back noninterest seeing and Moving income fee the the we're to are was compared statement. income third XX. on some the on $XXX.X

X.X% driven corporate services the third include trust $X.X by securities or processing improved largely income, Positives over and quarter, fund million revenue. trust and which

to investment higher banking trading trading volumes. Additionally, $X by million income increased due and

some from increase in one third which reported quarter increase $X.X the or linked equity a of has in volume the compensation securities increases. of income investments, deferred offset the on in related increase earnings million and million lower sale derivative proportional $X.X alternative was a to and included bonus line, contributor other income. market and of which million in $X.X the commission Also COLI partially expense, a quarter, were these increase a million on $X.X million gains in items offset expense $X

line item the higher growth expenses commissions $XX.X increased an million to More the and and were of and business the quarter from for company expense by XX% Non-interest performance. the third was million within expense salaries $XXX.X overall bonus quarter. quarter-over-quarter increase in fourth than driven revenue tied of

offset More detail the the for basis. expense, increased $X.X on can on expenses increased income, be found quarter quarterly million compensation Slide a XX. COLI linked Deferred on

Our for was for of greater from income tax-exempt the municipal XXXX, fourth full bonds. quarter, effective such XX.X% tax sources, levels the and XX.X% rate benefiting from year as

expect our to rate be For XX% XX%. and tax XXXX, we between

of going preliminary some the Finally, high Slide about provided implementation detail back to level quality CECL. asset XX, the section, in we've

necessary were We of our updates portfolio. equity on plan These very at using increase expect present modeling approximately day review, an impact the our the Tier impact common of current any and one file outlook ratio be when one will X on characteristics We estimates economic with final make reserves impact our day current our XX-K. XX% minimal on our we adoption. to calculated

for variables highlighted mix provisioning expectations slide. will on of well as two the macroeconomic depend on the portfolio Day as this growth,

operator the of That I now concludes to begin Q&A will our over it call. the prepared the portion back remarks. turn And to

Operator

session. [Operator now We Instructions]. the begin will question-and-answer

Chris from go question McGratty first KBW. The with Please is ahead.

Chris McGratty

versus we've light be this of I start How the rates? growth expense the revenue challenging that light in of in more kind on investments making. and we been should you're Mariner, level presented in about thinking XXXX the XXXX outlook to want of lower just by of

Mariner Kemper

I that. we revenue a of guidance look related would and making quarter -- higher investment Well, what investing than the had talked marketing is some in and them things like the that, little and about level teams the obviously on numbers to we say some of that fourth the business that don't hit give expense But been. they dollars of

looks good picture what the our in certainly growth look comments revenue look expect that pretty we quarter. like Some pipeline on -- answer talked do in into loan will first numbers spending of be about always we we we to as and as And XXXX. the that the the

in So are comments -- in Salt as couple of we Lake, Minneapolis. teams, and investing and in the in mentioned we a

right any anything? We of that. add to you weight those the give will So things don't Ram on want on do kind expenses. guidance

a reduction You big load, expense expect right. our shouldn't in

say, Ram. to have So I you don't know if

Ram Shankar

be Chris, on definitely we on leverage. operating a obviously, internally we'll lot cautious expenses, focus

bar point of Mariner’s doesn't on XXXX. So to the we and not a be the going tough environment the And high But us will comments, revenue Mariner’s said, side -- XXXX. set as the your expense pretty rate the that environment, into will the for equation. in we mean focus one

Mariner Kemper

definitely in our company. in sure we We’re that we as as future bright without continuing the that efficiently focused XXXX operate on invest see we by mortgaging can making to

I I chiefs the be and Bowl, I've the been five but going environment, Super mean as Super three pumped the contention to the I've to look would got years, into a we going operating made as investments am the to are about field, team we've and the our Super say never I have we go have Bowl tough is on investments the we team we've next I team. that XXXX a if Bowl, as like made and could

Chris McGratty

sense revenue invest? felt to what a where teams, investments, the as in are impact some of see get in much to XXXX a trying just you continuation two how was sorry, versus you the the I'm of of opportunities

Mariner Kemper

that sorry, I more give we don't you know too guidance. because without can color becoming that a on that much gives I'm company

Chris McGratty

like but -- offset. the that? sure In to just a of some terms seems one-time you of give -- kind you just just make on the derivatives quarter, color release about the comment item, Could there that's trying in was a can what

Ram Shankar

Yes, Ram. sure. is Chris, this

So the full just you context, our to total year $XXX,XXX. XXXX, derivative give expenses less than some for were

in did expenses derivative reversed what expenses. saw particular was been or higher adjustment a the it third our benefit all an $X.X second million and you quarters the reduced what So quarter about. that we've talking was in Basically this out of

our spiked to go second and you because expense in third, if some So press derivative of activity. releases our

So has book our the notional in on XX% increased swaps XXXX. back-to-back about

the made and valuation So adjustments with we as industry our in part where of line assumptions that, is. valuation it or revisited more our

So that's item why you a $X.X at expense of line year full swing, million on the would quarter-over-quarter spike see basis. that total I but look

Chris McGratty

in How second last quarter -- Thanks. seasonality quarters. I kind quarter do the then balance do we seems first about and was accordions this more sheet the like seasonality on prior one fourth mean meaningful we about the of think And than of the quarter, think up just How as deposits. down? it first even

Ram Shankar

remarks. As I the said in prepared

seasonality of second in half typical is Those really. come the of the Some public with December funds.

little of the So the which deploying of trust is into impact cash and big balances and our new there's bit quarter, the deal And there a us, to public a because business, with of readily fairly to to funds the deposit volatility a weren't aviation servicing, some had it. the institutional the market. then wasn't asset so particularly funds because businesses, in fourth necessarily excess inflows of liquidity lot

funds then in what's very some easily steps Probably down, really quarter that say since markets. pretty in going first get nature to given tend transient They the it's public balances and deposit short-term. they in to very to of deployed happen these typically to nature be it -- hard the peaks

things why is on happen a on really for hard it's matter. which So answer us, deposits of clear to margin give can that lot to change what and a will

Mariner Kemper

Anyways, snowblower, business, is the though, But to here, add of don't aviation the continues the here, snow for on it the road clients trust one so as by. have growing. as because business experience with are that new is to we would expand, us, the the by have I lot that deposit stays something a more second going expands, business behind growth number that is went business coming we it. trust our and just truck expectations along should of aviation base grow, it in

have that lot that, even history expectation base of an a it. is to there don't continues though with grow, So deposit we

Operator

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

Nathan Race

deposit on Going question the broadly loan to XXXX. more deposits last aggregate, back just exceeded XXXX just think about question growth in expectation, in growth

where deposit XXXX? and in you exceed of that growth corporate given expansion side just still the given in things, growth curious your just of to if So pricing loan the some trust expect

Jim Rine

is This No. Nate. We Jim, that. don't anticipate

the currently doing that that seen expenses build deposits. division fourth card the spend in increase to expense consumer the our to the consumer attract consumer on The is you marketing franchise. to to increase in saw However, increased was for success in quarter, we've consumer continue continue we're that

we in looking that to So are balance of some growth our consumer division.

the to We with not obviously yield collection deposit building commercial well, as successfully have been attract loan we're able deposits via going markets that teams on just new those balances. into, laser-focused but are

don't anticipate Lake But do to Minneapolis. in successful our be exceed to that. anticipate balances we balance Salt as So well obtaining expectations, I those loan as

Nathan Race

seen that nicely seven institutional last it, highest Jim. gears it's in up pre-tax changing color. then about segment, thinking Appreciate the helpful quarters or we've the And margin level so. ticked think eight I That's And just the and quarter. the or

made can see that a level units, seeing the number guys those curious, scale expansion going given to this just forward if this investments sustainable are of maybe limit level of So pre-tax forward? you or in the going kind investments that given or margin you've and some of more of you just there's as think if there, that going we a just

Jim Rine

anticipate level this could we I think would going forward.

make to investments. continue We

trust know, acquisition, while As the smaller closed you last we revenue. on corporate in

the the considerable as And what relationships, have very month-after-month, we're FDI investments. corporate business, the as that which quarter-after-quarter, fintech sweep we're doing trust discussed the but excited what been far made we business have partnerships institutional. seen well established as as We we're various the with with We've seeing increases results. the in dealer trading traditional year-end with bond reflected in we’ve broker but

division. think continued you will that see confident I I'm results from

Mariner Kemper

always it’s at this made. have point, the that Yes, it's very -- investments been leverageable

Operator

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

Gordon McGuire

revenue and Do the compensation and much $XX I -- million increase you the, this related and it wanted bonus discussion follow-up around to call volumes? the that commissions. what that the was on side year have tied of to to in how

Mariner Kemper

it the so the bonus to we … additions Ram, new business, activities remarks, in we with had generation for So, our had of we gathering the didn't regional might card hirings to in which activities, increased gave that for we've probably folks break three-fourths There's and expense and some of marketing have came that Salt increase dollars Lake. which expenses and related prepared you. the going you stick answer And to of a business bonus related our couple -- added from the the some to We'll out is exactly tied included of in you Minneapolis commissions credit deposit activities. hiring, and

Ram Shankar

if of of the drivers to XX Gordon, benefits Yes. enumerate deck, are. kind we've Page our go salaries you and the where of slide

back and I'll increase XX% because the was to go volume revenue of growth. commissions is again. XX% bonus to of of So growth expense my related comments about and what also then said And Mariner the quarter-over-quarter

salary benis to overall the increase of that. Again, widget growth, bonus So $XX.X and performance, million was commissions. revenue growth, million in all tied and company $X.X of

Gordon McGuire

I given year? growth, growth, really strong whether commissions trying to for level you're strong guess bonus at watermark was of balance how high at sheet kind get you specifically I a fee Yes. gauge for this the just and the

Mariner Kemper

was I was mean, to love quarter, I a guidance of good mean, pretty Well, give it. it don't we It hell a repeat a again, quarter. guess, good I on.

Gordon McGuire

continuing? that double-digits low headwinds fees you single-digit on fees, you the purchase interchange seeing Can of to were whether rates interchange cards, volumes specifically talk and growth. see then you're about this And up kind switching year, but

Mariner Kemper

comes can as odd in high talked we’ve and talked that about necessarily of sharing Well, what we XX to percent income And have partners we deeper. the business paid in because the past healthcare the sense that we reports some But have level, there, our we Jim business. interchange a have control don't from and them, we go arrangements. then

be So that what numbers down the otherwise. would holds

So, on the in but pulls Page XX anything don’t and but to a healthcare see we carry you down. you what want to see commercial in the and it better down. it's with the I it really our the consumer deck volume interchange our add that's percentages, it, pulls relationships slide of sharing can the business breakdown

it should working the is beauty right right. driven, Now is be volume it's

growth those it's all just a from margin, growth. all So an earnings a lower but a decent -- partners perspective relationships so and those

So of $X.X right. billion in the spend, quarter interchange

to we continue number So a basis. expect to that grow on quarterly

Jim Rine

model obviously tied deposit together that In fees. account the growth with it's with coupled the

margin, So net just a it piece of is the described. certainly lower which cards but Mariner

Gordon McGuire

That's And investments focus for updates year? of just be. M&A M&A kind the Mariner this then And helpful. on just any would the any where given prospects, internal readiness

Mariner Kemper

Sure.

we So, as active readiness I We're that contiguous. over deal we or we're goes, overlap to like larger mean, active we et as to made, no can are we cultural our far things really our we’d quarter-to-quarter far organization spread from of from all a it. do talked cetera would about, effort, a with investments We've active whether the like an to calling much know things the comments expenses within synergies the ready. effort, very very or team, see footprint right it's much -- got as as new ultimately all

side. had then, and banking to for And effort aviation ready our opportunities, -- in to and an we're no So companies. active activities. to for us on the where will business our providing for again, look dealers banking and anything real trust fintech look And services our broker related and investment corporate we've services trust comments, new we corporate trusts, have we're to right the go continue deal continue to

continue where in spectrum or that there are across And consolidator the having for either we and corporate the to can already bolt-on successful or a consolidation the of having -- truck additions, success. type as that add we're acquisitions on a to looking be believe product side, trust about more products We we've been we whole opportunities. can lot on customer,

and like see there, We continue we’d see continue to to there. opportunities to opportunities

Operator

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

Ebrahim Poonawala

So deposit just sorry period couple most A questions $X.X end ups if answered. and have this. and The billion growth. been in asked I of follow missed

XQ there in you sense understand some retain billion is of …? quarter. we I $X.X Now, any should of the that the first outflows how But expect expect of much seasonal to beyond

Ram Shankar

Ebrahim, new, to said about some the some I It's Ram. quarter with end It's really to funds. traditional and steady basis. growing really added really say. these aviation the trust And tough is as that's historically that's there's especially to fairly and Mariner volatility, it But of the tough we've nicely the corporate we're of especially business, that say these seasonality about on of earlier, sometimes. this at businesses, businesses, talked a public then

So answer hard hard say to really the what really look is say, it's to to going like. outflow say it's to long --

Jim Rine

success the board And then we've growth. ways across on the talked of coupled in really with deposit about is fee lot a which income,

bit having fund each is every we every there's services with services, business institutional of on and fund bring relationships. of one those a and comes So success that with account deposit our

Certainly the So tell funds this at because business. some public of hard there'll contraction just be to point.

Mariner Kemper

the to probably liquidity. XXX about million on you if quarter-over-quarter we’re about basis, talked liquidity. XXX point impact excess to basis a million richer look X from I at margin key in And

for probably So question diet answering to your and a you too. that's consider

Ebrahim Poonawala

public at was balances? what And end the the in year of funds

Mariner Kemper

when what have it it's handy, starts I -- but that Ebrahim, picking half December it don't second -- is is up. the

quarter you for can first get to the it. So seasonal peak back is I later.

Ebrahim Poonawala

separately, loan been I a -- growth. so on you think you've had quarter And strong thinking just

of terms think through steadfast loan half wise been You've macro looking of were things great back not year expectations. high-single-digit growth even last I in in

us the where to growth the seeing concerning you’re and seeing that in you’re are terms seems the anything the opportunities? what and in verticals industry of best talk best markets markets Just

Mariner Kemper

lot about why high is is, hit My it level than growth, remarks coming in really again, we them a a been quite sort lot industry of from which of better some but continue I'll large see everywhere. the underpenetration It's loan have markets. of same our time to for

to market people able as just in So just opportunity on get to a right ground, for plenty being verticals marketing to hiring against decent time underpenetrated them vertically and specialty in more share markets. large efforts particular continue and the we generally. relates specific and execute were And stronger over used we it right, be to and to that individuals specifically also, several us put to marketing than all be to

two some we've those So continue to drive think time which we about lot And talked a for that. there's things, of runway opportunity for us. for long a

just a long particularly a the cycle a the put of you have team. period of lending of for your front you think in side putting know, good is, long lot also for We you're It and this business. a it’s a well in tenure and really same able lot prospects time. to people, of There's bodes clients people commercial I sales in

were we crisis. from So, uninterrupted

some I And remarks kind same about had prospects want know, have our don't of time. something. it's again, retrain customers. and for we add to you I've don't quite So that to if Jim,

Jim Rine

there more We've market, it -- pockets. one in seen Industry loan a growth hasn't us. real every are been I and wise, we for -- but was there saw market of mean

from concerned with, portfolio indicators mentioned as that XX% our quarter, last We are But concerns. we're in some I’ve just was C&I. well. that last in transportation. that almost Nothing believe macro our slowdown but seeing raise I quarter production

C&I accounts. with business, and treasury we the get the that ancillary So business

that compelling continuing the a continues been the been five it the Texas estate, exactly we Mariner six the tell the years the into and markets the of -- we done we to penetration it's Minneapolis. And we've addressed and always move markets addition CRE real historically great which with earlier forward underpenetrated to market is over last Lake and have our but have St. to on the expanded and have it as in what on that Colorado, what in Salt that books, it's so growth over we're with and Louis, but story years

Operator

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

David Long

And Ram, get provide you little points the I could and yields basis NIM at point? be basis that side in what balance funding a you for X you think looking points. first you were down the see quarter sheet, the the first X indicated the that to of if how curious may asset to quarter, on to color said working both just

Mariner Kemper

come look points. just about if now it's month right Yes, year-end, basis Since at at one down XX so LIBOR, right? It's you XXX.

as said I prepared book to tied So my LIBOR. XX% of in month about one comments, is our

about. So, pressure on yields whole doesn't you offset that yields. say I by LIBOR, growth and think that movement some the I both see the Jim do a talked the the lot just should of be or in should asset because should fed loan Mariner But prospects

XX months. approximately of And cash have then in at next if and or basis And points, XX points. portfolio about of roll-offs, flows on a quarter in basis the roll-on positive first coming roll-off due the side, look you the XX the them was our quarter, disclosures, we were about $X.X difference billion

yield happening pressure should with offset that just asset So some of the LIBOR rates. from that what's

on funding very the cautious and side, be on the we're diligent very to then react funding will we environment. obviously side, being And the

And so, And we costs. the should overall, if on stays same as thing of deposit net see well. margin some pressure the interest interest alleviation on way is, rate it

David Long

the And at the in of quarter? believe to Commerce Did end any the that the to Trust closed that contribute acquisition, had of you then growth deposit as November. it I relates that

Mariner Kemper

small Not acquisition. materially, a That's no.

David Long

either having under you historically to CECL, getting that you pricing you to -- guys may closer are to you to Does loan willingness relates your your loan? it thought as lastly, particular do have results the report the as future? any CECL, change of make appetite or have it in versus for And of actually type does or what that change it done

Mariner Kemper

and is to would margin the really think time. over do it's come Not to going because come in we whatever going I on

so probably big it As about We of and not learned, currently of you've classes us example, time. those. sheet, that there's a something our And different but asset doesn't business, for impact. mortgage over is on that part carry expanding the balance have measured for over mortgage weighting, it imagine that's one a a and you happens have our talked do business in that time we should an happen would come impact plan big that would different

it we Actually, peers really business we bring no than we beneficial lot to the to more relates the do business. is really in we change business our us and expect today nothing type a as today not in way of bring the So way to actually of -- CECL.

Jim Rine

down And competition. it all comes to

banks then react big folks. they we'll our CECL, which strictly is have too do, industry to to otherwise it's the terms but change if on what our So unlikely,

Operator

The next follow with Instructions]. Please from question is go KBW. ahead. McGratty Chris a [Operator up

Chris McGratty

Just ones. quick two

updated obviously First, of any buying been but the thoughts of You any growth, change thoughts on on using where it stocks? levels -- philosophy organic in any kind because have consider the buyback? of you on might

Mariner Kemper

our those No. work it heard mean business want capital haven’t for before, we to I put who to obviously the build first.

like, like some those buyback So the extent and/or acquisition, dividend to out and our can to as aren't that acquisitions. as and do increase things obviously lift more coming then we And we're our capital going quickly we prioritize do against that. always

it. it. on eye a of So it keep We could of be all mix an

not us long seen Did it we before, willingness. have You've ASR first our a so do ago.

right, our and capital on certainly focused we other to that, going than is it the feel we're business. priced do to it. But work, willing So to time good putting building about the appropriately when be it's and

Chris McGratty

transactional Obviously transformational Can the was And your deals think might for $X.X to billion Mariner of you you M&A be your seems last was remind the XXXX Marquette, more moving towards front, I deal appetite range on XXXX what the but us and maybe and considering? precise? market be in assets. Great.

Mariner Kemper

you rule same There of list do deal, the is work The to doing the it. And there. fast and hard no smaller that. of don't the all amount get out you

Marquette be best. the range. end bottom certainly deal The would a So, the the bigger nice of

-- So take take I'd to bigger risk the then other the only we we the opportunity, the doing we're say deal. want and risk to because going thing seriously, less have the very

makes that us. prepared but do sense, look a like deal are So Marquette larger. those or be to have to we're bigger, lot banks going to They're as

Operator

question-and-answer our session. concludes This

Kay to Gregory turn conference the Now closing remarks. back I’d any for to over like

Kay Gregory

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

Operator

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

now may You disconnect.

UMB Financial (UMBF) 29 Jan 202019 Q4 Earnings call transcript