Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen, welcome to the UMB Financial First Quarter 2023 Financial Results Conference Call. My name is Glenn, and I will be the moderator for today's call. [Operator Instructions]

I would now hand the call over to Kay Gregory, Investor Relations. Kay, please go ahead.

Kay Gregory

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

those may undertake update remind me which required today. on presentation. to assumptions, set call earnings forward-looking SEC forward-looking only to speak this on that today's statements, extent on and filings All from in are forth in basis. Slide no our any uncertainties. a our per as These differ and of let statements, begin, discussed share share presentation results by are the summarized which them, XX we We of securities laws. Actual you Before to metrics obligation except included diluted are subject risks contains risks are

release materials and presentation investorrelations.umb.com. at Our press available are online

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

Mariner Kemper

shaping XXXX across media. a SVB participants be seat by and sparked all exacerbated for had the certainly front everybody Kay, good failure the the by market interesting industry, We've a and an volatility recent is in Thanks you, to Thank few morning. year. us up the row joining of today. to

have weeks to While trends not XXXX in have XXXX coming events in of that been challenges. the the the pointed past the of early several and anticipated, banks put spotlight may latter part

curve, also excess raising to and manageable risks would the likely We FOMC design in expected built eventual of months to curtailment acceleration of yield some resulting during to this inflation unprecedented economy. outflows the and the response the slowing the but By credit last inherent, in XX continuing an Xx the of the industry. the beta lead would deposit that in changes up liquidity pandemic the present

record entrenched past excellent of Even that and in diverse, liquidity, At a we've saw the environments track always strong liability we we our to challenging including the and market a to additional more flexibility time income growing the to conservative were securities we've turmoil. fee businesses, of others, XX% UMB, of over few ample a deeply total weeks. asset variable XX repricing and asset expected the mitigate for of which steps sheet, prepared March, on base, enhance taken long the already side cash ratio, deposit loan loans balance will with Like had within in first same with quality we're base, beginning resulting over different deposit materialize profile months underwriting risk environment nearly rising $X.X of pricing. flow costs, recent impact quarter. on built the asset before our help low The deposit this billion sources

total loan quarter year quarter loans of X.X% businesses credit XX.X% linked just loans growth a basis. average as were first average momentum of on quality of We growth with March and X.XX% further annualized end excellent results XXst. deposit loans. Non-performing X.XX% charge-offs our average of had fee and of net and just remains continued improved Our from at included of in

were our As loans XX-Q in you'll flat. see criticized

This loss. Our our seen and We're we've very book. historically watch still consistent past list levels, loans, and to recognize migration around trouble, any will take which as we quick address bounce are issues. little been manage to management action has proactive

industrial shown line under XX, on $XXX linked first behind annualized balances trends. quarter past Slide the construction loan and Commercial to production, XX. five and for estate pay The the our as quarter. predominantly line Total was balance average on quarters quarter are sheet, in multi-family our of quarter. the loans in was the top X% categories. and real loan growth XX.X% X.X% from growth average term Turning downs represent million first with the drivers Payoffs just in this longer the quarter Slide for and came

provided CRE XX our our Slide we've disclosures section This quarter portfolio additional on in line XX. business and of on

across strong geography. and by tenant diversified the portfolio book well quality classification property our and Credit is is type

of rates sponsors. experienced tenants' sponsors, relates to We've of strongest $X to CRE, office term generally adhere it billion stressed The loans. majority which $X.X and has UMB’s underwriting total include moderate is of long no or portfolio later. value approximately with and within recourse is our our X.X% office or credit and The markets. is either strongest average we of ratios. in office As our office XX% and interest XXXX standards imputed have of smaller exposure our to and footprint Midwestern just average our just to loan-to-value of portfolio under to UMB to approximately size represents non-recourse we an million in major office is XX% LTV matures limited portfolio credit of XX%. lending ratio XX% located loan or leased a and weighted most portion portfolio The a has lower The office the coastal and conservative

our activity. by seeing of makeup our the in leasing is return interest portfolio, which This and an additional focus, XX% continued medical suburban offices. increasing borrowers parks XX% supported Midwestern our Given office is and are to in office

stay portfolio of We closely emerging continue ahead any the to monitor risk. and

across the we to various our see in verticals footprint. quarter, second the Looking opportunities ahead

will pricing disciplined relationships. remain to further our deposit and with emphasizing lendings that on We continue come

compared increased On the the average an deposits quarter. other basis on sheet, of to fourth annualized side X.X% balance the

in earlier has increased March As shared balance we more X, to billion X-K since $X than our quarter-end.

of deposits a just reported For X.XX%. through reported over in of end comparison week last average peers the median increase have purposes, who the

peers of a half reported. shift less DDA, we of saw at what than Looking our

other balances quarter. point and commercial expected dividends, we and as normal business and why particularly as balances the our retail at given we from month any each institutional average day activity our with activity. On deposit out end in base us such base. over customer quarter, differentiates customer fluctuate Importantly, quarter-end larger is This on peers purposes and focus payroll, for

and and composition XX characteristics XX portfolio. deposit the show our of the Slides

We accounts or base span deposit of XX% lines diverse years of more. across deposit our a have various XX business very geographies. industries, and

Additionally, deep depositors, with as March to collateralized and other payments, services and treasury were we products of business total XX. deposits with exclude have and asset affiliate XX% management. trust, as adjusted the deposits many corporate servicing, Uninsured such relationships of deposits using

opportunity have the as using much sweeps. to even points We reduce further by as ratio this XX

of our already contingent continue sources deposits. while our insured Additionally, strong increasing proportion we to enhance liquidity

our deposits result, of a of XXX% liquidity XX. approximately as As April covered uninsured

appreciated mention those the Lastly, turn I on to call. I've before the that research you of Ram, I'd this like community, to including efforts it of over analyst

to contributing avoid peers. unfounded an effort educate market You've Ram? and participants made to

Ram Shankar

Mariner. per balance results. for I'll first first of top pre-provision drivers was Thanks items or Net some the $XX.X discuss share the in to first key of additional mind quarter of the a $X.XX Operating are share, $X.XX share. securities, environment that and of sheet I'll related liquidity, current deposits, for was income EPS few XXXX. our to the quarter quarter for quarter the million capital. pre-tax $X.XX per Then compared

days mix, quarter. points in the interest the margin the asset was positive fourth to basis and XX by purchased, negative as XX mix growth impacts first from of fewer points liabilities linked-quarter. levels. borrowing the Drivers shift quarter the approximately from and included decreased was basis and seven Fed repurchase in and X.XX%, deposit of basis points a funds Net of agreements changes benefits quarter Net the X.X% interest pricing for in offset and impact from the loan repricing decrease benefit the from related income short-term versus

repricing and Offsets from points positive loan the changes XX a balances. include XX points mix of funds and in free from benefit basis liquidity and basis

beta continue While fund is and our of betas total cost costs XX% XX% cycled our of outpacing to-date. cost deposits earning total deposit to of and XX% increase, respectively asset of

including We our shorter continue loan fact XX% reprices from of our months. of base, XX the portfolio tenor within that the to benefit asset

a of of basis, total XX%. we're total of loan and XX% On funds cost deposit our beta than beta XX% of our our XX%, interest yield of bearing lower cost beta but deposit beta linked-quarter of outperformed

on prior earlier, and to deposits due brokered the of the of SBB. As interest of failure cost I mix to our our to noted issuances CDs subsequent beta tenors different shift, including increased bearing with

liabilities quarter, high variable us rate from in in interest free quarter. our DDAs of XX% repriced fourth approximately balance XX% current that in were the our environment. mitigate down the slightly first cost a from absorb sheet average DDAs on loans to the the higher provides deposits The of of rate In interest and and increases flexibility embedded proportion ability

pricing discipline before, rate has In taken our nature institutional and further are our deposit lending the than we’ve emphasizing many the base, noted as we've interest pronounced As well. enhancing deposit larger deposit steps additional asset corporate relationships environment, betas of our peers. given more current that and of

there the shape ahead, many are balance continuation including financial look off into institution our of products. curve, to higher yield factors play pressures anticipated changes cash and shift, margin, of the expectation level, we rates, short-term net interest mix competitive and from that other interest As for sheet

uncertainty given confluence the these There is today, a greater degree all factors. of of

we ahead, interest Looking year-over-year net in expect would income mid-single on a digit basis. growth

operating positive XXXX. in generate leverage to expect we Additionally,

million, million fourth $XXX.X and income in $X.X customer non-interest life income increase just the $X insurance some company derivative in variances, $XX,XXX owned quarter, reported contains Our in related market a of million including versus related income. of

performance solid drove to decrease deferred impairment The corporate an that bank investment in securities a offset category in exceeded income. $XX million holdings. and fund net wealth similar growth. private the income Quarterly value in of X.X% services opportunities has $X acquisition processing sub relate and trust debt for of in see security Customer a compensation gains to in one million COLI our income increase continue and trust and in expense.

due $XXX of our seasonal increased slides insurance, press $XX.X are Employee detail taxes, The few release. and of of note. XXX(k) in non-interest our typical and million, A to items drivers in largely payroll expense. expense benefits reset million shown expense

related million noted, in quarter FDIC expense $X.X the had HSA in acquisition of assessment the full the fourth quarter. previously industry-wide fees added increased amortization and increase As we to a

These million related amortization would offset our we we timing were levels. those expenses. starting various to discussed marketing last other incentive $XXX of of we variances, of expense $X.X point put million non-interest plan and fourth increases quarterly Considering normalization As to by accruals from quarter, quarter expect or closer and elevated approximately additional spends annually.

provision $X million to metrics, our $XX.X credit in related The million and to key first excellent included quarter quality as economic variables portfolio to for trends mentioned. loan increased forecasted and million changes the for loan approximately our Mariner portfolio. positive $X growth remains of Despite and

increased to points of end. basis basis from year XX Our total at coverage XX ratio points loans

quarter for benefits tax XX.X% compared was The based increase XXXX. of was quarter driven related to effective first excess XX.X% Our to the equity the rate compensation. tax rate by first in primarily

to XX% approximately be will rate tax the anticipate XX%. we XXXX, year full For

balance our in the looking with investment the Slide XX portfolio more and Now, details detail at on I’ll sheet, start XX.

the flat excluding Our average $XX.X remain fourth the the revenue relatively in category. maturity billion balances investment industrial $X.X billion, bonds at health of from security quarter

average During and points yield to XX/XX AFS with X.XX% quarter, roughly split of excluding million for yield of quarter, X.XX% for of health basis portfolio the XX on increased an the and basis HDM I first The off. an $XXX seven mentioned, the an average duration increase and years. IRBs book securities yield has of rolled of our X.XX%, sale the portfolio portfolio, between had the of a AFS available maturity, The four points.

off further flows funding nearly providing period. is improve will portfolio XX also our position these to flexibility. the of that cash next AOCI billion $X.X over of Additionally, in expected roll months, generate The the securities

December unrealized interest improved as portfolios the from benefiting has XX. rates AFS have on reduced Our end and portfolio position come year the since from down HTM loss marks

unrealized loss to March the of on of cost. the narrowed or million pre-tax AFS As $XXX amortized XX, portfolio X.X% the

For was this cost. relative the amortized to million $XXX HDM the portfolio, loss

$X.X of an of to we’ve shared The from in March HDM to the XXXX. AFS billion transfer securities unrealized losses remaining $XXX we balance with pre-tax million XX. previously, As transferred the amortized as related of was cost

million was in $XX value fair of an of related gain AOCI. hedges Additionally, after-tax to included

result liquidity. could asset important intend our in class deposits these no they have are life and be to can municipal and losses. trust need We bolster to securities as to collateralize real sell which We used used bonds, hold to

Slide operational along position the XX sources and of our available to customer with contingent highlights meet needs. liquidity funding

billion liquidity we XX, had sources. in March $XX.X available of As

to As last liquidity increased week. deposits XXX% has of uninsured as Mariner mentioned, of coverage

that regulatory on included slide, ratios. Also our capital we’ve

the peer Our CET X of to XX.XX% favorably compares median.

Our basis the improved tangible quarter X.XX%. five fourth ratio common to equity from points

AOCI, Excluding was TCE X.XX%.

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

Operator

from Shaw Instructions] comes from first [Operator have you. We question Fargo. Jared, is Jared Wells line open. Thank now our your

Jared Shaw

Good Hey, everybody. morning. the… for Thanks

Mariner Kemper

Jared. Hey,

Jared Shaw

nice of First environment to the just balances there. see the resilience deposit that’s good model a the with difficult job during

at that DDA total, of look in good As to around of past the troughing still a we think about maybe zero deposits, sort a the expect percentage on you’ve talked as I floor cost XX%. Is deposits?

Mariner Kemper

watch sheet are we but you to higher because little don’t necessarily this I short higher closely. If the maintain overall Who don’t today, yet there’s other. what rate at we one a mean, the expect balance expect that it rates. Mariner. be can’t Well, little knows possible It’s We on is expect where will environment, the term a just from tell however. more We outsize move the way still we XX or pressure of exactly that. bit movement, really balances. leave a to could interest it

Ram Shankar

Ram, thing since XX%, have thing, that then would a on side new add hey, last cycle is of bottomed as trust only I The the and a of is we aviation businesses DDAs only well. like out contribute corporate we this at The lot Jared. lot

that and foresaw rates that time. last arguably But higher we as much unprecedented higher ever than would environment it So be this where said, are out would is than bottomed great we on Mariner anybody that. assume

Mariner Kemper

But I been the – stable expected than be. it more really would’ve to more stable higher than mean, it’s environment. we given rate we been I’ve it’s

don’t lot a we movement. – of So expect I don’t whole

Jared Shaw

through want cycle, the beta the should on for then at of or overall you expect however, peak at deposits look as [indiscernible] it? sort through beta look And a to the of the Okay. cycle we we beta cumulative cost what

Ram Shankar

XX, we’re as at prepared probably, in Yes, I my said comments.

expect I rate to cost of assuming total would around We’re Jared. XX%, probably another hike, beta we X.XX. and at stay our be

Mariner Kemper

like balance focus And sheet add, everybody Jared, on, anyway. to just the I would we whole

interest base very XX really, asset and is from our and is just our and on flexible really important not remain And XX% deposits. loans within obviously rates expect disciplined. asset of XX We our within with to strong pricing our repricing and perspective months focus

Jared Shaw

at lag we through of what’s can or how should in we type of see – future? Maybe – that see cuts future once some to rate cuts once we what the quickly margin in point what type actually the the pass expect

Mariner Kemper

is deposits So down. look This opposite down, on move down, I move which faster different first at way mean, it’s to if on you guess a the benefited past cycles, hard the the way the the such on environment. tell. right? historically, way will way I faster the deposits up, is we’ve because the on

prepared the it’s all moving in assets – on we’ll what term and the We’ll So what’s is are if in floors mean, be that, be and but It’s are the well with comes. pretty for that. we is that’s to too the cycle. past how talk I if how indication – early any awfully of when prepared that. for it positioned we’re about much what’s probably – early you the on future,

Jared Shaw

color around is. right. the and just me. the quality it finally how space high All the office then I for appreciate detail on And Okay.

are As your the that in you’re talking those maybe to sponsors coming that is be sense next due there’s access additional come – as that XX to they’d that due months, renewal equity strong to do more willing metrics? sell now? keep those as Or properties think put at – you those you to come would into due they they’re that deals to

Ram Shankar

other with than on liquid strong. anything. portfolio. the I’ll – the the end. coming these all real wrong sponsors very can rates cash We – take think it strong we’re add best and the super add mean, wrong end is don’t But Tom and you. at if strong to the estate very, of our It’s to portfolios office big stressed flow very know and stab don’t projects. strong borrowers less I be focused Tom on up stress of Office to are loan off a give just, it’s work values, low We front the probably to that Tom? about I’d this answer I No, very, do other It’s it. we could front We with here. front – on bank X.X%. these over then interest is you

Tom Terry

Yes. This is Tom Terry.

we of medium [ph] total and downtown Just more portfolio our suburban office to to of and rise mobile reiterate, as opposed in more are X.X% terms office.

very have we of sponsors to we any equity don’t at but if so, strong about have And ability that’s their in required more time renewal. worries put the

Mariner Kemper

and that we're reprices about anyway it by beyond. XXXX XXXX think time in rates. remark, I And how mean, well talked I the think And about in protected the in probably rolls the we our around. cycle of changes pretty and interest much

Jared Shaw

the additional Great. Appreciate you. Thank colors.

Operator

Thank KBW. now open, next question comes Chris, our have your from you. We McGratty Instructions] from [Operator Chris line

Mariner Kemper

morning Good Chris. ,

Chris McGratty

Hi, morning everybody. great. good Oh,

Just to are real team, about office going attention? where company credit, back is to has more that focus are earning getting portfolios there season the a your other lot estate. been Mariner this this or Is most? perhaps obviously need we for

Mariner Kemper

tied about reference ago don't Again, worry office we million a of moment comments, the that about part $X provision portfolio our factors, growth. economic at don't if office our use I in go million small our the all we it's to a tried to to – very worry And at on loan we've as of don't here. process you $X Just CECL was we our here. it I with expense, million very, that now mentioned $X based

environment this have regardless We've historic charge-off we of time. expectation at a the of metrics that what is. our We zero been fall outside long

we've anything had different. we got Terry. really me last and and don't of this through outstanding Rine of proud expect Tom together We're doing been credit have three metrics. and room this I've in Jim got The us three You the cycles with

Chris McGratty

for Thank that. you

which does group, ratings backwards it's on correlated argue the your if lot deposits other could at right has maybe effect to tied deposits happened? looking there of a rating? what for from or In Obviously, business question attention this to either all begin a terms even But on gotten of change is your boundary, any with. are that the we your or

Mariner Kemper

a bit We that's not important, a Monday I no, failed – is cost point a of slowed in that would economy. a we happens, few something Xx There's to up expectation long-term. since for had we disruption very of the where was for loan go but with slowed of a Not, beginning that. industry. then little after little rates recovered. SVB us that it the going there guess interest the year, all Fed pretty what big the economy, clients, the at to and which you is contraction growth to when Thanks be the a part the

All of this anticipated. is

is outcome Was the way Sure. of overblown it expecting in doing slow of of expected. is intended we that has rest by to All banks impact failed the to two exacerbated way, of government a It's us. slightly do happened cyclical the federal the to with economy. what's it SVB? have that But what something

are these guys this than participants. smarter phone way of on market You some

researched. You are I value. that move we just on rating had talking no agencies, ask that suggest And about questions which would way better the stop and

Chris McGratty

you context. Yes, then that. Ram, I could. one for for And thank maybe if That's good

digit and got I net my sure think over interest want to XXXX. I full said I XXXX on year you a growth mid income, that's notes, make single

Ram Shankar

Correct.

Chris McGratty

did about of the loan coming with you still your book. Is there that $X.X comments? slowing grower that get redirected I or off still regardless. portfolio. kind talked mean, into the that even into Is you that'll all? that assume assumption you the last at to billion economy baked mentioned tempered I bond like terms In quarter to double-digit of the number get

Ram Shankar

sure that make same got re-ask, expect I Do loan we Is kind the just right. might the growth? question? your question of I

Chris McGratty

what mid Like sheet little it I assumptions Yes, Is growth assume that remixing the to yes. single get are bit. NII? digit into balance it's in the of – a

Ram Shankar

yes. Yes,

Chris McGratty

Yes.

Ram Shankar

also prepared deposit a in on about terms little side, talked Everything we are about Yes, visible pricing, what of, of making just that talked bit that be how we from on the really his in expected betas sure comments so our our asset you comments means in we're do our in prepared credit. the said. contraction whatever market. in exceeding to going availability asset in that Mariner

Mariner Kemper

Yes.

Ram Shankar

in that But investment of terms our of said, been our of loan has always outperformance thesis one growth. tenants

Mariner Kemper

Yes.

Ram Shankar

opportunities. pipeline out So of we still looks see in We pretty verticals still see opportunities good. expansion our

softening it's our from see. real of what – just no demand from we So

Mariner Kemper

expansion mean, it just I growth little system-wide naturally I naturally – Yes. strong mean mid And you pricing, decent can slow anyway. think allow a the our be will we bit. off – is pricing slow. loan on ability, I – that have a growth strong That base we Ram a we beta we which deposit with coupled believe talking discipline, that's that that a solid But that doesn't loan pretty expansion to growth will flattening believe think that growing. include loan and asset single-digit continue about. what side stop will will of

Ram Shankar

and the north be you big rolling books two $X.X will at new driving reinvested of well. being of And Yes. of as interest off part net handles a That mentioned income billion loans. securities are into slightly

Chris McGratty

it. Got you. great. That's Thank

Operator

from We line you, comes Sandler. now [Operator Nathan, open. your Chris. from question next Thank Nathan Race have our Piper is Instructions]

Nathan Race

Nice quarter. everyone Yes. appreciate the questions. and taking Hi, I good morning

Mariner Kemper

Nathan. morning, Good

Nathan Race

then of XXXX, back rate the Fed the for there guidance assumptions, that hike on Going in May your the more half NII fed to back and does in contemplating pause growth the from one just year? kind of

Mariner Kemper

Yes. right. That's

Ram Shankar

Nate. correct, That's

Nathan Race

for debt of and behind short-term Okay, added that about then I guess what the you quarter? the $X.X that in just was debt. balance looks sheet that or had of the of was impetus some kind what great. it terms And quarter, intermediate the in in term plans of the near-term dynamics like are curious billion

Ram Shankar

take Yes, that. I'll

look sheet, our a billion, also the asset billion basis. close elevated $X to interest the you banks bearing was on So on if side, if our is quarter-over-quarter $X at you at at which deposit, balance up look

sheet. some we our at the Fed balance out We were have parked borrowings some, So abundance have and of accounts. excess of it's both did at sides – caution they of that just

based but be a for lot that strategy evaluate to the climate without whole not current going a obviously we're and funding. So periodically on wholesale it's long-term dependent on environment, of us to

Mariner Kemper

We're watching closely.

expectation that levels. those and normalize, and continue to things we is Our improve reduce

Nathan Race

great. Okay,

under sounds pipeline assumptions, growth, which of still loan expectation the forward? strong I just flow to the well cash those the and like, second So growth kind coming quarter guess, both is deposit you fund that pretty securities is got and off book as going eternally with

Mariner Kemper

it's we think mean, continue I I from to handsomely to loan important fund last kind growth what benefited is that we can everybody expect recession, like as deposits. with great we've always Yes, of off that around decade after you – been, of, We're note safety. which recentering us pretty think flight is somewhat I banks over banking the the relationship to it's come

into been you balances the pumped And which liquidity go there enormous of system, dumped the was amount the excess into has our So grew the an pandemic then system then. absorbed. government and money into and

we've deposits. with we many time, are XX it's fantastic a always during and bank and relationships. And and And is a what with deep which really over on come placing we've others, the think that been, much didn't reminded our quality if relationship based sheet some ourselves who deep like days, I started that last there's anything balance maybe a banks relationship loans ourselves as few high

is, growth loans And loan recentered expect how fund – going we relationships forward. that's funding go if around think with we'll I be going to more how just so and we're deeper our to forward

Nathan Race

sustainable that guess guys of as out growth of you that pipelines the quarters? those of and are seeing underlying Okay, the trust those in in within the in of segments? overall quarter, strong kind client then the and when segment. look like Or corporate income great. institutional had growth are I you terms you adds comes guys fund into rate And the it turn services few the just quarter looks pretty kind next – and saw new of it a Is drivers lines what some drivers over of kind some we to

Mariner Kemper

from is think I Nate, lot Yes, think just in which yes, largely multi-year that made – I coming businesses. a those investments of

few for new talked being what sidelined pipeline consolidation private and space example, services, based actually quarters business. the the we've So firms equity on and about in fund last for in looks backed the

a example. to some – benefited the private fruition of pipeline actually equity has a we've happened really And and to by of on the strength markets, for that's space. has services public equity what's last that for also to and the and because that fund obviously, lot So continues many strong years coming, liquid coming been side, private be, over

our of paying off. corporate are in investments trust All

allow and airlines any you Dublin office us are investing. to new that relates travel – have it XX fire in We do recently, airport Europe an therefore in more that in have allows airline than you on that know, to as states with business been business of the that is business

to really kind been past broadening. years of business going have Jim National, I talk, we've everything, say, expanding, board, said the but… I'll making across he's growing, probably from over accounts across really We bought off. some the let is paid Old And I investments many board. just the just the our healthcare so healthcare It's

Jim Rine

growth. You Mariner client on. really of contributor but had cover a did new for that and income but don't down to acquisition, it's did, And combination fees fee us soon. the extremely we've business turned it, flowing us see growing also our steady we for anytime has that and but real been

Mariner Kemper

for first time a our go last over deck. credit we the the in billion saw the in spend in X that's this quarter didn't we mention card, but comments, our And

You can find that in there.

that the credit like as fee And business So of cycles business what is outperform of against us. is we on we've all to diversity as model what the And said this peers. buoys tightening to economic our it's far really our different takes income this and and you just kind expect now, don't us our us our model through would of, time. allows any And suggest about that right in cylinders. we're talk hitting is be goes, the I forever cycle

Jim Rine

reliant more upon fee friendly income, are different. And just for their whereas mortgage just reminder completely that's that's their a banks other operations

Nathan Race

are final Yes, there. lost I get that could LTV the across portfolio? the across one disclosures portfolio average in to Appreciate [indiscernible] how rent disclosed recent all that is not CRE if point you just this just on, latter going back ask just and that to portfolio. Can internally office deck to kind rolled that to the of how one, speak trending

Mariner Kemper

I'm not totally. Well, sure did Tom? hear that, that heard I you

Tom Terry

the is don't we And asked rents. the thing remember out in office if of gate, underwrite about is million. Well, to our trend when average loan you loan-to-values, the portfolio $X.X we

so we're competitors a lower of do. And these underwriting lot a than sizing to our

how And we so front competitors of think by on the some have underwrite our loan-to-values have. we would lower than do I of end, virtue

nature expected. portfolio they're seen but to back seen moderate portfolio again, versus rental high type haven't and size as But out of again our more of product. low rates thus goes XXXX, performing a in We've rise it far. more of a not beings And we suburban, our today the just yet, a lot lot change past XXXX,

Mariner Kemper

if worst us point But this and lot them from with type of demonstrated is do a our we diversified have from and a scenario underwrite beginning from which to case, we beginning, are thinking, And how that room. – they the it other capability of portfolios of underwrite beginning, have case large the how we the resize real the is worst pretty gives about borrowers the to. all things all borrowers need big cash flows

Nathan Race

appreciate color. everyone. Thanks all I great. Okay,

Mariner Kemper

Nate. Thanks

Operator

Thank you, Nathan.

management on line. now further hand team back comments. no the for I'll have questions any the to closing We

Mariner Kemper

look a in I else to say. don't quarter. next had to you we anything Appreciate it. and great seeing think have forward the quarter We

Kay Gregory

shortly. on available will the be website And the replay

If up us great a at us you joining and you day. any XXX-XXX-XXXX. have you for always can reach have Thank follow questions,

Operator

gentlemen, Thank you. Ladies today's you and for this call. Thank concludes joining.

now your may disconnect You lines.

UMB Financial (UMBF) 26 Apr 232023 Q1 Earnings call transcript