UMBF - Earnings call transcript Q4 2021 | UMB Financial Corporation

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Operator

00:02 Good morning and welcome to the UMB Financial Fourth Quarter 2021 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. 00:35 I would now like to turn the conference over to Kay Gregory of Investor Relations. Please go ahead.

Kay Gregory

welcome fourth and XXXX and morning call. Good to quarter our full-year XX:XX and Shankar, and a Kemper, CEO; Mariner President Ram about results. few our CFO, comments share will Chief UMB And CEO for Bank; Credit session. Officer, and the Jim question-and-answer will of Tom Rine, available be Terry, statements, uncertainties. we forward-looking let presentation begin, to subject Before remind you are XX:XX today's assumptions, that me contains which risks and XX our are filings and Slide included on in SEC of risks presentation. These summarized our are which statement, only those set forth today. results as Actual differ forward-looking of may from in speak XX:XX no extent undertake obligation We except to to required update the laws. them by securities per this diluted a metrics earnings All share discussed call are basis. on on share

Our available the online presentation I'll are Mariner turn release call Now, and materials at over investorrelations.umb.com. Kemper. press XX:XX to

Mariner Kemper

that today. rates results delivered are operating momentum businesses. largely balance garner and continued struggled fourth In variable a gains. to than estimate in and these higher We that loan to and compensation through market typical along XX:XX interest our positioned linked XX:XX software with discussed on positive growth, of we’re business the others more on to largely we Thank was cost legal you, loans timing in by we We’re we were XX:XX timing XX:XX operating than benefit growth. investments better strong of Kay the average We predicting the in There the our with nature sheet, generate metrics are in the others growth and incentive million PPP, fee meaningful environment, additional anticipated focused based saw expansion, business impacts XXXX, full-year. continue leverage economic higher quarter. and XX:XX our expenses and XXXX, lower variances Additionally, our sides while experienced, our and us all quarter from XXXX, making. economic expenses a fair and should remain operating XX.X% environments, few consulting that will of excluding had to share higher and steady on solid in in some investments. across factors we quarter. contributions charitable In we thanks while of share we increase financial continued confident related on delivered our results in joining first everyone both growth XX quality approximately we the in to many people asset we strong expenses, we’ve in When attributed industry As reset driven in Many the that before, performance for the to of and of outsized platforms. delivering incremental expenses invest quarter continue increase spend. prudently had for

new interest saw billion. our prior income $X.XX at compared and on $X.XX or XXX the to In business PPP, XX:XX total and year Agency flat an XXX.X in side. Solutions, Trust fee the Assets quarter Specialty the growth. assets grown have million share but on share. And quarter XX.X on and on a impressive positive Pre-tax, income offering. to continue invest XXXX family more momentum increased was crossed benefit in garner shortly, by XXXX, we of quarter XXXX. per per to with new side, results, saw for threshold in positive Wealth, over for we forward fourth to & or quarter, Fourth revenue in market excluding was to innovative XX:XX asset the leverage Private expect contributions million organic XXX.X Fund income service relatively comparisons. I'm to this and and Custody on looking the the to Turning XXX% adjustments impacted XX:XX higher XXX income we year-over-year driven Tattooed ongoing our gain net XXXX net further end rates. increase basis XX% detail as our FTE in sales and pre-provision we a was without we XXXX, continue generate million interest an share. the was third the drivers operating Chef from nearly in business. In for billion impact the On related investment administration office stand strengthen industry our or Ram, teams year, of to will various recognition services products. XX% continue build-out

of XX a is line loans showing linked in XX:XX balances excluding Average our annualized XX% X% balance loan the snapshot loan of presentation. quarter Moving the more and the nearly the to for see behind the You'll mentioned. drivers quarter, a PPP fourth on business updates the growth in nearly year-over-year Slide increased detail I sheet, basis. portfolio

market. commercial level and the typical were real to by a XX In have expansion, our basis impacted direction strong markets. with sold an averages. across in portfolios, impacting the refinanced payoffs consistent many chain family XX:XX projects prior quality and and Payoffs for quarter. with of recent private these clients clients of construction labor continue of charge-offs have Total increase eye and family increased of to opportunities attractive shown our as so record and quarter partnering loan secondary production to through to by coming XX our the interests, for for and merger customers million our organic we more issues PE on the Average both pipelines More are XXXX, clients points on XX:XX with grew activity. Asset basis mortgages, And third remains annualized average our of we Most mortgage advantage penetration and backlogs time, as in line payoffs businesses. was including C&I for loans top multiples, annualized a outlook market. offices. at X.X Slide keeping in the see strong strong quarter often estate acquisition lately X.X% from loans residential mortgage as most XXXX, In industries. hundred, XX% coming of more Many firms basis offices. points and of balances the completed were paydowns equity converted we with these quarter in of about term cycles saw quarter, XX%. net historical XX:XX on commercial deepen the expressed financing have secondary from linked in the are very Funded are the continue while firms and feelings XXXX. tied in us. balances loans an At supply XX:XX general, XXX in compared increase secondary Average nearly some quarter, acquisition. or same our full-year, loans XX positive reporting X.X% been same In for were market a are and and XX% XX taking billion line been to

a in of phase XXXX be the year. may will to alternative no what I'll it While we're customers factoring estimating all opportunities hopeful us our of for We're to us, acquired factoring turn and in first continue serving with his sale nearing in small of the XX:XX comments. XXXX. unpredictable, we portfolio moving can sale forward. financial final see pipeline across over and an the team we early ahead verticals a robust of and our issues financing of was payoffs Now, quarter. the pursued discuss our proud for prepared solid company. Ram keeping they’ve I'm additional impact executed XX:XX remarks. our Ram of UMB all the this excited pandemic, see but matter some opportunities portfolio Overall, the in Finally, shown we January, the XX:XX Like navigate, resilience in I'm of we Ram? to

Ram Shankar

lower at XX:XX PPP the XX:XX Thank million flat, September at million the was X.XX%, interest changes XXX net solid PPP million at mix, the the of in Net at and to year. $XX.X was our remained interest offset million, earning into from to We growth amortized asset and fees compared contribution stood average end Mariner. unamortized to end, of income. origination benefit to PPP quarter income PPP changes, to quarter X.X balance million XX:XX in relatively million overall was down in due $X the Average asset mix sheet XXX a At PPP XXX.X $X.X from XX:XX including decreased last Approximately increased as liquidity points and balances. compared XX partially earning asset asset quarter fourth fees decline by yields, income basis you, XX. yields in million income million, the $XXX quarter. third balances reduction

associated in X.XX%, full-year basis impact from X to in portfolio net Fourth provided factoring pre-provision X.XX%. For by build-up quarter of the NIM and the quarter $XX pre-tax, full-year liquidity mix margin approximately and quarter lower XX:XX levels, of points so XXXX, build-up liquidity reinvestment third driven core basis had XXXX, was revenue accounted in about points XX:XX million excess The XX approximately repricing. million fell loan linked and rates, XX for XX contraction. interest additional income the approximately million. For reported was the our costs,

expect for expectations in-line rate the improve reverse to XX% and quarter As bottomed cycle comprised levels, XX to our fourth of our by during we net fourth quarter and cash basis XX% PPP and with rate the consensus last the with income two be average that and XXXX, points. liquidity shown compared will of loans on will X.X%. interest improved made margin cash repo net excess reported of hikes XX:XX volatility XX:XX Slide XXXX Based last the continue earning have deposit reinvestment has three generally our flows account, and interest in to assets, with current yield from us our impacted our on current a X% rates Fed margin estimate in XX, now of balances subsided, likely on interest net our levels. quarter While just experience out consistent blended from

strong for was by million, the losses for credit quarter growth. Our almost X.X entirely provision driven our loan

item in shown line were fluctuations of our including XXX quarter. charge note was drove related activity. million both for expense will Excluding the linked was allowance Non-interest by service September expense, is September loans loans, spend. Market balances excluding to to increased X.XX% processing at above is I third X.X of growth on Our XX. our just fourth our positive variance in quarter about million increase to from trust fee XX% included of conversion timing XXX.X service salaries a quarter, the Derivative and consulting, such quarter positive prior pertain XX. approximately drivers growth income related are from business basis, on and fourth our quarter healthcare an income, X.X Chef Non-interest remaining PPP income in shown expenses end trading largely trends We loans, well Other million X.X to million charges. rate service from are and deposit XX:XX and spend the million X.XX%, of increase that approximately related bond XX. million, corporate and in Slide levels XX. Slide XX.X Expense quarter to for business on XX:XX value to PPP client securities to the bonus run XX:XX retail deposit XX:XX currently the Legal our marketing period charges the X.X linked XXX,XXX in equity of million our shares income and quarter fourth and and position. Tattooed business and higher a a in typical fees increased performance. as of have the investments. higher as increased driven compared

interest Looking ahead, in in over XXXX the platform. in needs, increased increase linked our were and we expense the for costs with the business giving the processing leverage giving million and XXXX. and education fourth the increased gifts wealth small to XXXX, quarter in prior contributions. These charitable pushed of driven I'll XX:XX quarter And Mariner rates. implementation efforts operating PPP our our private mentioned, excluding other about a positive quarter, and reiterate our of $X markets that management in impact housing line Software benefit the support to included as the without higher generate million or new XX:XX by expect $X.X full-year improved that the we and of year-end organizations mark

Our the for fourth full-year for quarter XXXX. XX.X% and effective tax rate XX.X% was the

approximate the to and the anticipate XX:XX For the XX%. I'll remarks, XXXX, concludes full-year portion turn That we prepared XX% now operator begin back it call. the over to to Q&A our of to

Operator

from come session. question-and-answer [Operator begin question Shaw Securities. Jared Please first the our ahead. now Instructions] will We And go of XX:XX will Fargo Wells

Jared Shaw

XX:XX Hi, good morning everybody.

Mariner Kemper

Jared. Good XX:XX morning,

Jared Shaw

you've quarter? that X.X%, that on the full-year Maybe margin, first Ram, or was said for XX:XX is XXXX for [ph], [just any]

Ram Shankar

XX:XX That number. That's has it. a what full year consensus

XXXX. will assets. gave I just proportion to as you earning said, a can guidance margin Obviously when impact you as how magnitude XX, our of So, I see grown Difficulty] consensus outlook the [Technical for know lot relative of the for in factors, and both see Jared, that a has Slide

a based this our rates, into point but So, margin, at for lot factors of play outlook XXX-ish will [indiscernible]. on

Jared Shaw

few XX:XX the on next as expected get right. quarters, what more from you looking going normalize at of great quarter. just rates? this utilization Okay, to it's think And utilization a the the over seeing growth color that you all impact, then with give then, that see do paydowns to And Can rate? of begin could the then you're forward, the impact a moderates? what loan little normal benefit C&I those type And you

Mariner Kemper

other would where tell pop it’s kind rates, quarters, it Jared, Hey, [of of points we're quarter – COVID. these out. the or that it’s fourth settling Yes. XX:XX the particularly third XX:XX quite in, slightly. Mariner. bit during went From way, quarter one really to around This is say up two last example or one-way period a it [ph] XXXX] the be within I to other, quarter utilization this for they and hard it should went two

an come is I adjusted hard So, period up of this pandemic to think number. kind with just

[ph] around. So, it's [bouncing] of kind been

our that around be now. should right what normalized know XX%. rate around were things to number I So, bumping Pre-covid you XX:XX give utilization you is XX%, hesitate really

guidance fourth strongest have the given you with quarter, historically not the good try will, quarter, do looks you gross in was much So, do production And say but for quarter to as payoffs the growth that I on gross best quarter. at it really coming what pipeline it quarter into we it paydowns, and And is almost the would the you coming billion a too loan we've been that production. XX:XX as we the has look the and as beyond looking. had we've XXXX X.X next

the the and successes [pumped] So, there. about pretty we're having [ph] trajectory we’re

as I as As far low that as will in as they think fourth been, rates are now, secondary right payoffs go, remain we're X% strong, to all to we're moderate. push have the in running high-Xs obviously, and opportunities should XX:XX paydowns that's the long the think and quarter. range rates predicting I low, market rates going up, cap come

and come I be paydowns they're going to up, payoffs think moderate at We'll all-time rates know, XX:XX rates should that lows. still you over XXXX up. the coming have as to see,

sales rates going with I be still should think to market paydowns. and coming is but up, strong the even certainly moderate very it

Jared Shaw

give out, XX what – could maybe the of can just on When first sort are, is called takes be expenses me. Thanks. able most one at roll-off? million look And quarter-over-quarter Okay. should quarter, that puts and XX we that some you we little to you into go XX:XX of potentially what million final us for the expect we as color a that staying of around

Mariner Kemper

XX:XX XX way Well, a of that is that to related thinking the good production. million we're about related, was majority

were contributions very the commission see so, if to see, and you our success compensation. Certainly, have strong on bonus elevated charitable And continue theoretically year. will more last production, would we you based

like were if elevated of last year. the we we consider great an to again, back guess, we community end if in giving So, would our did I having towards success, we're year, the level

Jared Shaw

you. Okay. Thank XX:XX

Mariner Kemper

loan XX:XX I front. the growth would add Jared on

quarter activity the in at the muted of because quarter. is, I of storyline a the third payoff was actually really end happened the little think fourth what

quarter in of the from think the than the better end of versus at actual growth averages it levels what based end-of-period looks fourth I our So, story the on starting quarter. is elevated of payoff the loans because the third point were

Jared Shaw

XX:XX Great. Thanks.

Operator

Sandler. Please Nathan from of Race ahead. question next comes The Piper XX:XX go

Nathan Race

Good XX:XX Hi everyone. morning. Yes.

Ram Shankar

XX:XX Good morning, Nathan.

Nathan Race

deposits, period end-of deposit on significant growth. really Question XX:XX obviously

any of deposit just updated sheet of So, benefit as guys to largely inflows [indiscernible]? guys with kind do start obviously the [ph] just year, remain on those all you have rates expect deposits provide thoughts raises just still on which have can short-term and as you seen, as – you massive Fed this curious, [stickiness] the we the liquidity significant the that balance

Mariner Kemper

one stimulus that's long to trying XX:XX of Sure. all, I’d I industry that's around. community and it's money in. analyst say, And story a are here, mean, the what's many of all of right. come you've figure the as us out got points over how sticks and all pandemic we’re happened that's an

specifically over the a how and on kind XXX on activity out so dollars back first aware, large I that's into that year-end exactly that us will, we part of quarter first if well dollars, or as roll fund quarter [ph], if So the public the could you’re over lead good for out. be out] institutional fourth don't the is quarter, some the it. know million dollars, the We side of you Then quarter. judge, in and is build far XX:XX a down some fund history but [believe would public first will

Ram Shankar

the say, XX:XX the focus deposit us, I in balances Nathan, on on the both would side, particularly end-of-period is we’ve for not deposit past, Ram, would said right, like loan this the I side on side. and

XX, between said to of at institutional. a look and the our XX balances has some it Mariner deposit billion, funds what increased period is X.X you lot attributed and December public in September If by between

of seen deposits. have we receiving some So, those

in-flow the or quarter So, day more because, ends, year the depending we again, side focus deposits. on just average I see could ends of the would which on

Mariner Kemper

generation quarter. the we the XX:XX strong fourth loan activity very in did side, On have

case misleading positive deal little comment, is a that, story my I the deposits. opposite the average the that the So, to which in the previous is for for us, in as said upside of

Nathan Race

to thinking upward basis deposit cycle are quarters, the and in deposit average in XX:XX in the index of is over where next Understood. saw XXXX? just balance context, And Ram, costs the just terms you during just – fourth on can as increases [ph] expectations your and previous short-term the within stand rates, we the general us [traject] that deposit relative that XXXX remind likely likely several to quarter balances between how the for about [[releases] [ph] Fed what

Ram Shankar

XX:XX that that we in with are happened betas see Yes. deposit In you'll time. consistent interest what our our XX-K, assume analysis rate last

So, increase had point XXX our I think came period last to we basis time and over a betas short-term in rates or about XX% that XX%.

from those is least funding depending market at with the what question, assuming that to and does. slow time that competition standpoint, then obviously, experience, increases And the an the beta we're be to deposit our first is XX% on in there’s potentially can we excess cost does made liquidity rate. down system very similar interest around, short-term argument some about of indexed on your XX:XX So,

Nathan Race

a three little maybe what saw, or than ago. higher XX:XX years we so And that's

I close to Ram? correct that is XX%, think it was XX%,

Ram Shankar

cycle Slightly we left than last the when higher the XX:XX last cycle, correct.

Nathan Race

revenue to XX:XX impressive XXXX, me, the look growth services guess And fund year-over-year, are one as on going banking you in within line changing close into XXXX? posted at dynamics is I Okay. one services you revenue various really rate for revenue maybe that kind this I segment, of Great. in growth institutional growth institutional that forecast banking just to for year-over-year and guys gears guys, then guess particular year XX% last sustainable the particularly how

Mariner Kemper

add [PEE] in last he there's markets. the the equity that lot to about say Jim has is beginning been of lot the is, disruption and of I continues. driven and be the that and take and of mergers story think in handsomely which that that a an public caused just markets on, A as and XX:XX we've private continues what alternatives I'll quarters, in Yes. of alternative to handful to just story The strong similar if servicing lot acquisitions just the a can. [ph] and what been fund service have market benefited of in and put XX:XX various space, a would of just to lot wants that's here top shift. sidelines on I players dynamics that. we a really from disruption On saying of

for play [equities call I'd a is permanent in, we’re I I'd big [ph]. more us, doing on market to anything what the side [indiscernible], XX:XX that. big alternative more not where dynamics, Jim, think It's public have I do and we're and that private really long-term. and think not high of the equity shift kind a really well the shop] a we which level. say, really That's you builds

James Rine

on I that continue No, we service to differentiate know XX:XX working. the results are ourselves and proof model that think is you our

Nathan Race

XX:XX That's great.

Mariner Kemper

making is on got of wealth is we really in the story. investments we've similar XX% office, We're paying that in then and about the we've are haven't assets And sometimes been really technologies that and in family of development. really the people the XX% seems a business, in like people the And that. And It kind I having client XX:XX excited for investments us. part off think great our there. rest growth making of tremendous year businesses, a been a new seen leader really big growth XX:XX

spending great X went volumes, but to now way government is of gaining which normally growing the volume. offering and business on take We've there, and Corporate the some dollar to trust, is environment XX:XX in be in really are. Nielsen and we've is share went driving to invested continue We'll really XX:XX X share. there man, tables, We that been and went a isn't number in been business. number the we we business I that fire. for lead think where really they on the number we've technology number whole that so X X, time in because issues, the from X helping from

before, all basis, our that poised really local We're share So, things sewer those there. when spending us rate take because doesn't us fees environment talked starts look that we’ve you XXb-X government stimulus about you [indiscernible]? flowing for backwards kind highway forward, when again. money come as as forward rate zeroed XX:XX and have does to fees. roads, been Jim, on Additionally, sidewalks, might looking of redoing systems, out and starts the pick-up looking the movement XXb-X to for take talk much

James Rine

in in XXb-X mutual was in income cuts, around approximately fund million were basis XXXX income we points million. [ph] our brokers XXXX, sitting so $XX and at XX [or and rate after] Well, XX:XX right XXX

takes So, XXXX. it three we a to rates increases benefit you in any months in after increases to but the in see an months we increase should see usually increases additional see in two get for but us we'll rate to see fees, expect XXXX, those assuming significant

Mariner Kemper

XX:XX excited. So we're very

didn’t business similar led the business fee again business commercial board strong very and business, and people is So, that forward, card, poised. newer again that spending prospects from us. excited across institutional fee business We in normalizes corporate excited environment this, ask we're even basis, not really a that the the the mortgage within this the for for is our our have [ph] the the how are tailwind really then industry. will environment at XX:XX X.X are better relative profile at about which we trust the business. about that's that The have reducing muted to mortgage profile our you XX:XX do again. on come is a said and the fourth looking rate Again, aviation of strong for about pretty so the for have positioned the traveling along some – by reasons again. the picture So, world that know suffer very would] well with lastly, of we [but and the doing our card end with picks represents quarter, up very when big a we’re you will to overall we don't that changes us. think I environment, spend billion And On in business

that. to don't So, we lose stand

has strong as deal going it increasing. downside profile a to having forward as So, the been our rate pressures remains environment with of without

Nathan Race

really $XXX,XXX to it clarify, the XX:XX benefit like will of in great of terms see you is half XXb-X quarterly hike? roughly rate is each on – Got That’s just it. And like after color. roughly fees, it guys Fed Jim, the

Ram Shankar

to here to… XXXX. the you’ll Jim it so said, we rate rates give those On funds dribble as up, specific the sitting benefits very this multiple hard full-year too all same – specific. is in this the basis just kind cycle said when mean. That's and be run XXXX tough timing what not hockey hey, of for in it where I mean, certainly predict It's a the might have as see of we see clients go here said, the of that's XX points sit XX:XX biggest them back stick. funds Ram, again it – XX:XX every and able say XXXX, you is have when to of us, to Jim it’s and basis really to

James Rine

had have way, idea you the Yeah. XX that of we a before going amount XXXX at looked was versus XX:XX based give color million, XXXX the going and The into of was in like business XXXX. – into we we little the and business the just on what on to it have million amount XX clients by

So, we've got more more customers. and clients

So, that volumes. bode for the kind overall well of would

was it tell it is to So, hard two you really ago, will idea. what years can it's the be though we ready tell which what

Nathan Race

it. back. XX:XX really the again. I guys. Got will step Thanks color appreciate I all

Ram Shankar

XX:XX Sure, Nathan.

Operator

KBW. McGratty question Please next ahead. And from of go Chris will our come XX:XX Instructions] [Operator

Ram Shankar

there? Chris, XX:XX you

Chris McGratty

XX:XX Yeah.

percent would for can on, I view the And in I'm the you a sensitive, the priced interested you within quarter asset remind NII not, rate hike? year, Ram. it. floors, was show about mute. like Sorry Question Hey, but I just benefit modestly the any what sensitivity, think to of estimate what loans that. us, on your it Q, were each on I in think understands ballpark

Mariner Kemper

XX So, anywhere basis loans XX really are for on loans XX% [Indiscernible] but of have and be XX:XX of truly basis floors our nature, point those about them, then our variable. between total and point XX% variable it total takes moves to rate in

So the of the equation. that's side loan on

right. you're So,

approach. have Our static a XX-Q disclosures very

So, to balance loan analysis past interest to of growth in missed related year. and growth net we there's that that XX% one no growth in had income. that our is sheet what obviously, the this saw you So, happens thing XX:XX

So, nor points analysis, that loans balances from any and earning investment today the that's the account in are not not are basis securities. included Fed XX rotation into

if XXX So, you, to I on in benefit X% million year. we the point expect point it, [ph], Chris year the first [ph] plus] move a basis it's way best looking so, very income X% we you [static] are interest the net benefit at disclosures in is, rate, a second run and for our look can [$XXX at

do means So, you every on can that the kind basis XX of point for what move. math

Chris McGratty

XX:XX Okay.

Okay. on versus the structure your just remixing on I balance given of the mean, the deposits, balance what deposits sheet, sheet was index the aggressively? a thought bit little retaining these more And all

Mariner Kemper

there's and mean index they're would lot remove to mean [bid I them we in on we a sense soft that some I going the Well, those contractual XX:XX need can of accounts] I if there. etcetera. are and [ph] are call some of them

like in what just do is to such it's would we – categories of investments. on as as mixed and our of the we other possible about putting So, balance work it relationship loans it’s much a a and to mix more it do the business keep and bag. of Most as XX:XX the kind sheet what worry with with based

to franchise games pain we willing we're a haul. for we're value build others deposits, to – company. The to always and want our the little than continue so in maybe like don't really have been, more for to the as business is XX:XX build ratios. to play We really this the long we of take the So,

Chris McGratty

Thanks I for Okay. XX:XX guess, two one. that. final I have

rate Ram? First your is reinvestments, are work on securities where money the you up [ph], opportunities yield [XXX to reinvestment ticked XXX] from put to today

Ram Shankar

really depends Chris. XX:XX the Yeah,. It on duration

roll-off So, that XX:XX yields are trying Those were [XXX] So, about if trying XX the we're at all manage XXX, it [ph] based tenure at reinvestment, three [XXX] manage a duration. the get six the I we is, to I short that want options stay do in [ph], the can based go longer talking mix close months, little so the terms the on if years, risk. of and look where years, range get if I would at say, we our could duration, rate our I to pretty can I of on looking depending of interest outcomes, current flow you again, to our think to live. to terms of get again, I close cash is we of in on next want

Chris McGratty

amount, comment, then XX:XX to speak operating Yes. to back – curve, do the just seem positive decent think we by you Could leverage. the widen to but and If finally I'm ex-PPP again, assumptions not a that the forward I get would sure the magnitude? operating business? I rates, just want to operating the Perfect. it are you would leverage with like reinvest what without come And said into

Ram Shankar

Mariner a – [ph]. done or for been better we've of and guidance specific this part three give don't even we saying for lately rate saying right, has [with] has this before Fed the what been cycle the quarters, Well, XX:XX

budgeting our assumes leverage. always process that we So, operating gain to want

you instance the able see to lot We obviously, and of side, XX:XX going a to be we income fee in bearing can the results, those financial are So, fruit. then if regardless have XXXX. from environment, four rate as the or the points changes investments want of rate come really if juice would And positive. basis XX there hikes are the in environment of the generate does instead Fed basis points the XX dramatically – for

think tend rates, you just lot go back I a of as to expenses in with So, the you of Again, magnitude point. saw fourth to either way, in without positioned this give at the benefit a to well or we're quarter variable XX:XX I nature. be

So, well. on we revenue do as side. well Expenses can the grow

Mariner Kemper

rate interest the increases [Indiscernible] as XX:XX generation. business in and

Chris McGratty

XX:XX much. very Okay. Thank

Ram Shankar

Thanks, Chris. XX:XX

Operator

back and This session. XX:XX answer like turn conference to concludes to I remarks. would closing for question any our over the management

Mariner Kemper

all you time your for XX:XX and [Go Chiefs] all. we interest and I [ph]. think Thank it covered

Kay Gregory

will shortly. on will our – XX:XX the be website This the on call be up replay

you XXX-XXX-XXXX. Relations Thanks can Investor you have contact us always If questions, today. for any at joining

Operator

presentation, The now now you you Thank is and for XX:XX disconnect. conference today's may attending concluded.

UMB Financial (UMBF) 26 Jan 222021 Q4 Earnings call transcript