UMBF - Earnings call transcript Q2 2024 | UMB Financial Corporation

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Operator

Good morning. Thank you for attending today's UMB Financial's Second Quarter 2024 Financial Results Call. My name is Jennifer and I'll be your moderator today. [Operator Instructions]. I'd now like to turn the call over to Kay Gregory, UMB Investor Relations. Kay, please proceed.

Kay Gregory

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

including as results, company begin, statements, acquisition benefits, the as and that me the synergies, to management contains let future realize foresees. pending of we you that gains discussion Before presentation other opportunities financial expects from today's well remind forward-looking the and operating costs

Forward-looking of as statements to forma filings metrics in today. to those presentation. to of are include only subject and speak non-GAAP uncertainties are We them, no available forth may and of SEC XX and as measures. to laws. Presentations and which any results our statements, XX pro extent assumptions, online from Actual forward-looking risks slides the our and obligation summarized except on reconciliations financial differ outlined by update required securities materials investorrelations.umb.com undertake at in set

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

J. Kemper

us Kay, joining everyone. afternoon. and morning, discuss quarter we announced Thanks good great for yesterday you, results, our Thank second as

real earned draws operating loan lines. sheet we average quarter an across per a by increase first growth driven linked- net On construction X.X% solid income the net into on $XXX.X or Our led growth reported share, momentum performance our a annualized $X.XX GAAP sheet balances, metrics. We interest credit million and balance second approved with $X.XX driven various of lines by share. $XXX.X quarter quarter strong commercial margin included or continued expansion, with basis, by million previously growing and interest along of earnings per Balance continued business. estate in

of our prior $XXX the to card balances remains basis card our Net by increase and a for full difficult our increased loans. were in predict, loan paydowns, of slight in loans which X.X% charge-offs in quarter, loan quarter. of This Top line portfolio line impact co-brad points is for Credit we average balances. quality a average acquired are March. XX.X%, production were basis X million the portfolio non-performing X and the was Additionally, quarter from Payoffs with to excellent. fell loans just but meager quarter, total points of historic averages. again assisted

of the in X basis compared drove to Over a ratio cards our the averaged basis saw for group as amount Credit industry our XX points points quarters, we past X quarter. XX and whole. has charge-offs non-performing peer basis for the small the points

had C&I While recovery net both we a in and lending. Specialty

C&I has fact, posted X of In X in quarters. last net the recoveries

$XX.X in continued investment of a real recalibration X of Asset reflects been to portfolio. loans. charged-off our be Provisions Since with than models. impact $X loan quality XXXX, our million very has strong growth, along we've just cumulatively, estate attributed which can the the less million of

expected seasonal to the Our annualized public of $XXX balances of and X.X% intentional decline coverage grew basis deposits linked-quarter in loans. reduction brokered total the Average increased a on X ratio or basis, total points million CD including funds. X.XX%

of profile, funding median of strong our nearly all with comparison, growth have quarter from the just annualized lines a reported in the highlights increase For growth quarter. Deposit diversified for peers coming second X.X% business.

investments consumer the market made money success the of with year. the and good promotions, On we've retail half front, banking private first from had in marketing targeted

approximately average the increased $X.X CDs, client last deposits brokered Excluding quarter. from billion

quarterly these $X.X XX% quarter CDs shortly. last since fact, billion look and our drivers increased detailed In turmoil a more Ram second by the the have of spring, XXXX. over excluding or will deposits, at of other brokered share

of about deck. few a shared in updates excited remain Finally, we pending Financial have Heartland acquisition the our and

and progress in early process, it's outlined milestones the the planning. we've While in integration

seamless transition focused business' and The a ensure derisking customer-facing serving growth. Again, usual on of ] franchise a strategic, we business this forward remain generating is model. and our the of perspective, integration the focus fit without to many strategy, capitalizing UMB's we believe associates The establishment XXXX from team great high-quality we further to beyond. Our addition in and a activities. cultural disrupting and combined allows a accelerate transaction will growth to customer on our an [ is financial diversifying as see look opportunities and company this

I'll it over turn Now, to Ram.

Ram Shankar

$X.X X.XX%, X to represented I to loan levels million basis shared the our $XXX.X offset X part higher or by basis from funds, basis by a growth X free terminal of income mix betas interest continued a positive margin points total for interest repricing basis X point liquidity. and on Net large and to on of points XX%, basis of points pricing increased portfolio, basis XX% in balances. The from yields reflecting previously, X.X%, million an X partially Mariner. to and were X increase continue expectations of and from various deposit driven Thanks, closely These points higher the was increase changes. Cycle-to-date point of betas. driven level by loan outpacing the linked-quarter mix, smaller items. track from reduction to due expectations the loan and DDA on stronger-than-expected impact and securities basis are deposits related respectively, Net

levels. Approximately would deposits of Looking to a third quarter rates. short-term in prospect are Fed cut our indexed relatively second interest be total interest the to we September, rate into net our expect XX% to of with hard stable quarter, the margin

deposits we current at the changes, deposits indexed negotiated rates. our soft what additional Fed balances An or market rate immediately. prevailing funds As reprice these call total down of XX% are

us quickly and during interest interest Coupled expect betas we rate rate rate accretive simulation deposit deposit the to for following to implications as our neutral books shows favorable would results, cash year yields, some reinvestment of XX any similar of from expect in we to securities be our Page flows of with loans On shown indexed rates tightening cuts. Overall, fairly deposits, benefiting the down repricing with soft steeper on X. cuts past from our down deck, banks, move X, way our peer year this and these at on experience cycle. than pretty immediate

As include that quarter, new analysis pro and averaged securities preliminary a slides or portfolio are Heartland this estimate will portfolios and growth neutral. in billion At in Details does of generated stage, the we not a income interest this AFS rate from XX any forma activity acquisition. our during relatively and decrease our shown our reminder, interest The remain X.X%. HTM XX combined deck. $XX.X the on position

on needs for purchase trust yield securities collateral average both X.XX%. as to for portfolio while continue fluctuate funds purchase off while and noted, a of X.XX% public agencies, mortgage-backed quarter, and We securities based had in deposits. The rolling the our security yield levels our was

X We March our to and grown a levels Tier expect the increased common of equity securities XX book build roll to continued increasing in X.XX% past next year. which with to billion of value continued yield off to XX.XX% book $XX.XX. Tangible with over over by XX.X% growth $X.X $X.XX months. Capital from XX capital the has per value, tangible share

April. equity include capital purchase agreement, that our the announced described in agreement million ratios not do regulatory offering in previously forward $XXX we forward our As

million net billion from acquired software our processing first to and XX% an back bank quarter, million few $X.X billion, acquisition June and decrease higher FDIC and position, On $XXX.X XX, in legal costs, million full X%, noninterest reduction to portfolio charges. in XXXX fee by gains seasonal expense, increased deferred in in co-branded the benefits of to benefits gains expenses administration Private related a increases typical quarter linked-quarter previously with from due $X.X million, a retail partially our $X under compensation the expense up an expense, in reductions net bonus on the and increase $X.X of million year-to-date increased basis, in Noninterest FICA a newly higher from for higher subscription fees timing in increased related and software In year-to-date continued largely expense million XXX(k) was with quarter salaries year reduction on quarter. various of with the in teams linked-quarter a assessment included for merit of items included million along spending, million special assets credit growing billion XXXX expense. Within salary costs and card has the $XXX included performance. in along to of bonus offset card the a business year Turning and ahead to $X income $XXX in $X.X projects, was and $X levels. settlement, Fund operating accruals pretax income a These And Wealth, new our of Services' equity non-recurring $XXX.X million debit statement. of accrued in ago. Noninterest $X.X brought assets expense XXXX. prior including sale of have a reached land. Momentum second

and core items quarter one-time the seasonal our second rate in was $XXX million. Excluding approximately the expense variances, run

tax-exempt Finally, tax was compensation. effective to increase quarter primarily The income XX.X% related of the the tax a was our and to XX.X% in XXXX. year-over-year stock compared for decrease securities rate second quarter lower benefits in on from

tax the XX% For and would rate expect XXXX, between a we XX%. year full

over call. it portion to the the turn I'll for the of operator Now, Q&A

Operator

Jared first from of Our comes Barclays. question Instructions] with line [Operator the Shaw

Jared David Shaw

your thinking Heartland heading to just around potential should sort of or UMBF restructuring I'm or acquisition deposits, doing. and into any either given changes the any that restructurings good loan-to-deposit maybe securities you ratio, expect pending start So, of we brokered level on closing, anticipate,

change go into that we about? Just thinking be any as closing, we should

J. Kemper

But you give much I I'll in let obviously, that. you can't take Ram of can there. we some Ram, give way the color? guidance mean,

Ram Shankar

have point most on the advances CDs of brokered the program. our we Yes. FHLB remaining our deck, brokered we one recent investor I'll rolling XX in pages of in FHLB, and what maturities out quarter the BTFP and on Page did on to

renewal than levels them our ratio ] based probably led runoff. for intermediate other and liquidity or our on come up loan-to-deposit So, [ when evaluating has them carefully bias they

We side. the our on portfolio asset-side investment any books. don't our that's So, restructuring on expect on

what But we Heartland contemplating, no Jared. excess other might we're paying for have, nothing down there's us, do. than So, guidance that specific this liquidity that on

Jared David Shaw

from And at that there, runoff Okay. look just drifts cash lower we reduce? securities, flow should assume you potential we the to that that while cash as use just that the maybe then

Ram Shankar

because, again, portfolio these we these let or excess be deposits the bond come portfolio on And see given stable. ratio mid-XXs, our Page down in of might as relatively generally, XX, just expect deposits yes, can the well. obviously, we But are loan-to-deposit some as the go. Yes, higher-cost you the our cash to -- borrowings

Jared David Shaw

the know, Yes. Yes, we it's year? whether DDA, each end sort on you of balances. okay. some DDAs, of average, as fluctuations give the can period expectation Any color of with quarter, on through then end-of-period on obviously, you I or And have the trajectory go rest or

J. Kemper

day, different much than the a not in of backward-looking is at rotation the here. like pretty we're that up way cycle. we to that feelings. you can't clear We end that past, give we fact we've we're made the with the Probably And the aren't which come really the of that is that feel rotation rates than it's feeling at predict comments the bottom bottom of the that more the close that from up going

most from with the So we the first. place took place in about as through book, beginning our talked we -- and the it would of we early and cycle, took feel that the like cycle, rotation go of

where against believe to going rotation we as probably them to basis, through relative a as going. rates look on of with that be peers, believe all we long most be we're So, our

Ram Shankar

of would month there client client of balances is DDA and always I their used activity. a end at right, of depending volatility to say, the lot end, I end, like on quarter And ignore period

balances. much period So, of I to would the yourself too not index end

J. Kemper

happens Though the money help I there as it mushroom mean end month, make that end right? typically seems. it of the quarter, does almost this on we every of it money, at at if the us more is make

Jared David Shaw

Okay.

in average So, seeing we where could average think growth in DDAs? from continue start quarter you at a see or we point be this growth to

J. Kemper

on grow to or new to just publicly. ability to hard bring whether say would That's it's that based activities going I in mean, which and our sales not. we predict. it's to predict that's -- business, we don't I forecast hard

Jared David Shaw

Okay. And then just for Alright. me asset finally on quality.

there? what happened And Asset classified quality just change CECL. Moody's the Is I -- a in model you for drove that baseline a referenced the quarter? using different I was guess, wondering change and sort of is what what criticized within or then model great.

J. Kemper

of will and turn Tom So, over we'll part take first question that to second the Ram. the

Thomas Terry

Yes.

Our criticized loans and basically quarter-over-quarter. classified are flat

But a actually have and criticized that's the part pass pass watch always our a You of movement of our little bit between list. watch, low is was down, which flat.

Ram Shankar

Yes.

models time On change to correlations. change Moody's question for From not indexed our XXX% CECL to CECL. drivers, and about look macroeconomic performance, the assumptions. We time, at baseline. we out swap baseline still did variables, second and our We're effectiveness for

a So to models as to higher part XX our of coverage points that, get basis couple we a tweaked provision, just of ratio. get

J. Kemper

that feel we We in strong, we front, just of a take in the and it's right it's believe -- like conservative I the mean, all, conservative, it's on healthy are, all approach. we reserve. a organization kind

Ram Shankar

of And the important is changes your models have. driven, portfolio provision CECL on quantitatively provision, was that part to of because all we trends. of underlying excess based both questions, not the questions It was underlying that

J. Kemper

X the being hardly how about we say, long same those good points. thing books And it very feel just related the things, growth. never take It's it's time. basis are better. our also of doing it. then real we We'll same are. would And they company. criticized and meager, team about what we're looked very talk loan echo exists. proud to for I it manage mean, the charge-offs just really And We the a seriously said, to Tom flat, I what When

Operator

of Our McGratty from KBW. with Chris the next question line comes

Christopher McGratty

back maybe to back the Ram, coming margin to coming second. margin a just for -- the

are points as XXX higher. about roughly, margin, of quarter, looks You guys last basis X.X Heartland's

With restructuring -- pro you the from accretion, I'm of margins. a to forma the trying get I sense and should bond be like them mean,

talked NIM. be helpful, So, the you've about any comment on there neutrality relative would given

Ram Shankar

the to noise to date, that here. of lot mean, sitting right? I me that answer what So whenever into going marks really how accretes right, to know, tough just that's Yes, it you on as question portfolio for on depends related income. be there's a a acquisition happens,

to more our noise earning So, their, math and our a assets because number, I to margin of be margin accounting on purchase going do whatever, get but taking based mean, you lot a there's on X.XX% simple can adjustments. X.XX% and a

what really hard and obviously, here it's we book close. it sit their for to betas after -- deposit happens us on still depends to So, running how they're and manage really

that like too look forma the pro feel than a should position that kind from at we I relatively give margin, to it's early forma an other you of said So, basis. be on interest comments rate I pro neutral a

J. Kemper

of tied mean, a a we're have transaction, doing term, right? smaller one of to book higher longer yield. have it's deposit a loans, the having a mean, I reasons do the which I they better base. They carries margin business more granular

run the So, the it's marks they mean longer-term that, of noise reason the business I the all transaction. the of part doing of taking we're accounting way is combination the their and

So longer that. we expect term,

Christopher McGratty

now and If efficiency, everything of given the accomplished just is and mid-XXs momentum, low-XXs. of you investments missing we're you've making over it And anything terms Okay. get as other broader there seem would is last the ]. in you're that integrated, But kind in couple the in the through that of leverage. about years? go reasonable. talked been terms operating quarter, feel, through, would XX% you any the [ bank, guidance meaning years, look over But be we about think out accreted would running you're next you've I once that to It of investments objective

J. Kemper

have we going you're being we what There's work probably to I remain been. as looking for not here, efficient what more think mean, remain I to on focused but do. give you -- always is, we

is than X combination that overall, more again, think efficiency. operating stronger. would companies much I just will make the of us leverage I say, our it

on more of to efficiency reduction. We've that it big done before focused through of bowling a said we comments on us, our pandemic. ready up the So, ball to and today make ball that in the work pushed for pushed We've modernized. systems end is than systems through modernized. spend experience. revenue lot We at for us, think right, I pipeline, a focused is a to get focus we've expense more opportunity the the that's bowling room And customer and our front are on the big

than of focused is our more XX% there. spend So,

retention benefit that. be opportunity and we'll the thing our all of no client are small is both and that, of to Heartland platform we able in is should our layer revenue front, and general, what and institutional as we're great business modeled top I revenue take good all synergies And think I their network requisite would that. But, So, our on C&I in we and on the at and their their way aware, think branch about exciting publicly. the footprint. And say, produce the there of I and transaction that you're

and seen. upside all be to and that's gravy So yet

So again, revenue is more operating than the that re-echo just leverage, if expense. I'd our that. we're And you're about very thinking excited about its on opportunity side

Christopher McGratty

quarter-on-quarter increase? one your then the Great. -- drove any index could, if on Ram, the prepared know any of more particular the costs? change. any deposit the deposits, category about particular but the on that impact heard And about from larger out just sweep one some that some I product the from Any call cost there's I banks deposits, but remarks I been questions driving or you

Ram Shankar

talked institutional quarter-over-quarter the on increase that in for of about cost we've the is last No, the pipeline a of couple quarters. basis deposits

on the on of the side, timing was of -- the driver let sweep And board the those I'll deposit yes. So, Jim but coming cost. answer

James Rine

care you're care-related those a Well, We're accounts know, forward. assume the that on as going material anticipate us don't portion the us. anything on being for you for issue. that an don't I anticipate health not health transaction expenses, we We deposit referring sweep side, being fiduciary, for

J. Kemper

either. second a it wasn't And driver the in quarter

yes. impact, current So, no future impact, no

Ram Shankar

Yes.

Operator

Piper from Race line comes of Sandler. with the question next Our Nathan

Nathan Race

you're over overall growth pipeline the just as the just on based was quarters. that of terms pipeline across seeing real estate I'm you in largely XQ? and by an next loan the to here we update expect saw expectations do driven get to couple loan curious be of mix, what I commercial curious, just in

J. Kemper

that. you as coming existing same look We do business take the we the in the Nathan, that if being from book are in balances second would quarter drawn Largely, that the and are continue commitments were industrial. made comments to to quarter in I'll backward, from. they CRE were multifamily first we CRE, make where on.

lots remains there there. So of opportunities

that other on focused we're So, talked it relationships than was with with. business before, as and our relationships we deposits less it's can more current great broaden because we

transitionally was case you the know, that's excess third only next look into pandemic, usually we of as give that the system. XX coming out kind quarter. as actually And So the days. the of liquidity we pipeline far where very in goes, strong see a there But the all as a

it's a third across our coming quarter, that, from do board, the of segments. we As it's very and all strong

Nathan Race

half Okay, going guidance, great. just helpful. back I of the of Very at And of then September. Ram's to for if year, think, back we get a margin end kind the stable, cut even just the

those to of trying terms guidance the and hard that coming of understand is, you kind that seem in given to rate portfolio loans that excess off Just matched deposits in continue floating support conservative pretty you your at of soft relative to clips loans just well use some of pretty indexed as up and to bond the terms how strong and maybe true growth. just percentages, your grow liquidity

Ram Shankar

we of or billion, right? question, DDAs, parts, could billion. billion like it's mean, $X.X before. moving could Yes. thing, be lot said, $XX.X answered I it first complicated is could $XX be mean, we've be the it a obviously, it I The level of

rates, pretty months And higher it, current continue in timing call costs. But, institutional rates the deposit can our after quickly that our are XXX XX we below coming they're market of $X.X move about market we fixed I or my reprice next XX% at deposits because in some that have as mix to and So loans right? all the in to close are. said, prepared book rate immediately comments, billion rates at, our of deposits have where still Fed basis impact that points overall cuts said will the of priced of will

So positive, billion points, higher. securities obviously, of getting XXX basis at with that's due third X.XX%, well. And points is positive and a our then priced the coming happening as in basis about $X.X book cash what's flows XXX

our and Prime lot we then XX% tied to in have of loans positive So, rate. XX% side, them variable just, are momentum are the XX% or on SOFR nature. other is of one side or of

So might when advance that happens, do. SOFR in of what the moves Fed

other So side. that might impact loan yields the on

lot So, we or this saying, I'm the Heartland and on true before is as parts, layer for the X X next of acquisition. quarters obviously, moving

what given be including stick I'd stable. to say, would -- mix we deposits, dictated Again, to that my will I it of original So, happens expect to by it comments be DDAs.

J. Kemper

growth. loan And

Ram Shankar

loan yes. be will yes. Yes, And growth, point, to new loans accretive your

Nathan Race

then, of And great. just Okay, fee income. momentum institutional continue the to on good you kind see

we've those Just and growth update so just of institutional? you last that sustain kind continue just or terms give kind And of, lines. seen kind curious, the an activity if opportunity the you to you're across the can of can in rate on year across over thoughts seeing levels any of

J. Kemper

of That's I I on fund well In There's report couple particular, lot of creation, on, our major of is the across continue very, board, I'll But servicing that have. very lot quality love very very our favorite questions and the and another him. clients my going to one anything profile couple lines institutional we growth within AI, a a business I missed strong. The love add some Alternative in things let a growth since lot asset if positioned Investments, our we of to Jim say be a of but fundraising strong. of business things. a is within credit questions. questions.

pipeline within see lot a of then and a the really growth base. customer We continue there to strong

I very think also very our there competitors bought helpful. sold be and be is the profile the strong. the that So, space in disruption continued -- being continues has with to And to

has And all fantastically airline travel Trust pushed I strength the continues in in a business strong profile a great with be really a coming really strong. of think that business, activity tailwind. is and that's to Corporate on. which strong lot So the and

business and that real been has are building great great We're time just really in that Our consolidation a that in good space. And tailwinds. again, hiring us really having in the we space. CLO for hiring again, have people and such space is,

about strong. are So some that. Those rest with profiles. all The outsized them good are some of momentum we continue to real and feel

Our The wealth business, interestingly, great new have of right and also assets profile now. really management has sales been strong. activity a very under generation there

that's nicely you up And add, quarter-over-quarter might and year-over-year. Anything so Jim?

James Rine

No, the it only ability thing our is deposit can to move I move, would get add balloon, the is off and just if have trust if great balance -- corporate contributor base, sheet. a they we as to we you business know, also the -- they

it ability the invest. and sheet. built we're We to balance have to out that nicely Really keep continuing on

to businesses very for outlook those remain continues strong. So

J. Kemper

continues -- And whole within businesses and all in the this but momentum AI of trust care health strong, real there's I profile all the are them -- set. said, for like corporate strong, some are

Nathan Race

the could about I year. more, next ask aren't If It to one terms quarter planning the you looks helpful. thinking guys of until very systems year. in Okay, expenses of next just fourth just convert like

later extent So can ahead realize, saves guys ahead in conversion the year the cost the assuming sorry, year? just next think you save, I'm early or degree close of deal or curious, of of the what you you cost to what

J. Kemper

But come too probably on and really, and to they you report how, premature I we them. -- and tell we'll We'll it's through as and that. on to -- we when intend, come every on -- them, execute in early, they savings we'll synergies report those quarter. It's mean, obviously, segregate to as against report

Ram Shankar

Yes. And from nothing has announcement. changed our

XX% first we else conversion based in fourth close the on that back, beyond. we then XXXX and quarter first cost go saves XX.X% time the would XXXX and that the -- get that, expect in in you and If quarter of frame everything

perspective of no So, as now. that from change

J. Kemper

you'll changed, said, projections it but through And sort see comes of that all for you'll I as as hasn't see, it through. come it

Nathan Race

color. great. all appreciate Okay, I the

Operator

Rodis of the comes Our Janney. next John question line from with

John Rodis

level? guess, that fees. on I decline cuts, hold maybe to brokerage Ram, if follow-up, start line see item, a bit? little the does to can that some start Just a you we Fed Or

Ram Shankar

Fed takes No, of on lot side. before XXX -- points be that's basis revenue cuts to the impacts of -- it it be XXX that negative points market has share. the plus impacted a to basis XXb-X money no, for cuts It

So But impacts add balance sheet risk some. dramatically. earlier there's still I point, opportunities cuts we're off no expect Fed even and because Jim's would near-term until share away not generate revenue fairly To seeing of the of maybe any that. to going

J. Kemper

it frankly, rates quite And I the will -- activity more way if the go down, come we up. think see is

more be there'll activity. So

would the margin more on So, time, over that anyway, see as also. hit we'd volume

John Rodis

comments Okay, makes sense, $XX you're previous strong Mariner. talking million trends fees. just fees, The stuff. about bank million on and card And then your just one $XX and other to now

last year. And $XX so you feel, quarter a that's up from million to million $XX

seems forward? of appropriate new this level $XX million million So $XX going to sort of

Ram Shankar

of one drivers. the biggest Yes,

of it, We even volumes, have organically, quarter, purchase care of be lot we health momentum purchase have every billion nicely, and of at used up obviously, it the our purchase driven quarter catalyst biggest So, on $X.X you that strongly. second the heard by in income growing acquired. grown lot million the as right? to volumes -- call a co-branded we commercial And is is $XX balances card fee from where volume lines of

So about about interchange of volumes, purchase -- business interchange million. million fees of fees of or $X.X that generated net gross of $XX new

quarter and incentives that's positive. momentum on part and go timing to up for It quarter like of from So is higher feel based us. we at the other But the pretty organic drivers of feel things. can we the growth network or good from level. down inorganic the generally, But,

J. Kemper

card starting side relationships volume had have institutional new We of couple also that to on there. a big are drive large the some relationships really that

I So, say upward-sloping. trends the they're I it's here, are up not neutral. mean, would from

Operator

Fargo. with Timur Our Braziler comes Instructions] Wells from of line [Operator question the next

Timur Braziler

X margin I occurred just for wanted bond seems of quarter later the to bond next end the amount outlook quarters. much XQ go repricing in I'm of on margin? over follow was if growth we and of repricing that's much XQ the wondering, that to of a and back took pertains online of as coming in how what's quarter the to the elevated compared as the for the not the XQ It it like up more in into least tailwind place book. at just

J. Kemper

[ you're our at in as time, institutional-type there's pages, deposits trust balance for as one of collateral lot to that No, earlier, and end, month back-end ] we deposits. of seeing, especially footnoted a the we time needs described increase

end those. we So up buying

generally, quarter always inflating at that. quarter, and ratio every across pipeline on may we to what But based the looking reinvest months a looking at. loan-to-deposit you're our to all -- we're want be So those whether X in

I would late month purchases. tailwind and or the collateral mean, not X expect the days because just following and X X again, of of last I -- satisfy the over X is following quarter this the days first needs quarter last So, the days days. of to a the the of

So third there's tailwind that. no quarter in be from expected to

Timur Braziler

near one. are Okay, great. an institutions acquiring consolidated opportunity on And larger benefits kind Or of versus kind you're the together fact I'm near-term that at smaller as and brought under consolidation essentially closing? then, of maybe one is least a of the maybe term one that the offset some general in wondering, of a as Is that just deal follow-up those the the operating deal. planned that XX model? risk Heartland

J. Kemper

they transaction, over like years work. and set us That's one just the accelerates look to of XX started things the things up themselves a executing acquisition journey that of about one that is us really that it's a really question, to this all X ago, years, and exciting this the great basically excited next and X

and think, I soil So they've harvest. they done the -- to tilled our the on of we seeds said, and planted early in get calls, one I

and done and in come the they've the consolidated systems, get of all They've in things to hard So all the we we work. that sort layer do.

And they've so, I not to I risk work opportunity to a guess, more lot the that, leverage already say really done. would of that

work like excited come and, done. said, about get So the to it. just we're kind I pretty in of We they've leverage

any all see don't opportunity. So, there, really risk

Operator

There are time. registered this no you. Thank at questions

over call the pass will to for remarks. I management any So, team back closing the

Kay Gregory

follow always XXX-XXX-XXXX. and with Relations for have up today. a everyone, in us thanks, at Again, and Thank joining great Thanks Investor you, can UMB day. your interest you for

Operator

call. your today's Thank That you for concludes participation.

line. your disconnect now may You

UMB Financial (UMBF) 31 Jul 242024 Q2 Earnings call transcript