UMB Financial (NASDAQ:UMBF) reported third-quarter financial results on Wednesday. The transcript from the company’s third-quarter earnings call has been provided below.
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Summary
UMB Financial reported strong third-quarter 2026 results, with net income of $272.3 million and earnings per share of $3.56, driven by record loan production and stable net interest margin.
The company announced the acquisition of El Dorado Savings Bank, expanding its presence on the West Coast with 35 branches and $2.1 billion in deposits. The transaction is expected to close in the first quarter of 2027.
UMB Financial maintained strong asset quality with low charge-offs and improved nonperforming loan ratios, alongside fee income growth in institutional banking and fund services.
The company’s operating return on tangible common equity was 19.5%, and it redeemed $150 million in subordinated debt, increasing the CET1 ratio to 11.50%.
Management expressed confidence in sustaining deposit growth to match loan growth, highlighted ongoing strategic investments in AI for process improvements, and indicated openness to future M&A opportunities.
Full Transcript
OPERATOR
Third quarter 2026 financial results conference call. After today’s prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to K. Gregory, Investor Relations. Please go ahead.
K. Gregory (Investor Relations)
Good morning and welcome to our third quarter 2026 call. Along with our quarterly results, we announced an acquisition to acquire El Dorado Savings Bank headquartered in California. You will note that we’ve posted two presentations to our website, our typical quarterly review and an overview of the announced acquisition. Mariner Kemper, Chairman and CEO, and Ram Shankar, CFO, will provide brief comments about the transaction and our results, and then we’ll open the call for questions.
Jim Ryan, President of the holding company and CEO of UMB Bank, along with Tom Terry, Chief Credit Officer, will be available for the question-and-answer session. Before we begin, let me remind you that today’s presentation contains forward-looking statements including the discussion of future financial and operating results as well as other opportunities. Management foresees actual results may differ and are subject to assumptions and risks. These risks are outlined in our SEC filings and summarized in our presentation on slide 48. Now I’ll turn the call over to Mariner Kemper.
Mariner Kemper (Chairman and Chief Executive Officer)
Thank you, Kay, and good morning, everyone. I’m very excited to report both our strong third quarter results and the acquisition of Placerville, California-based El Dorado Savings Bank. In recent quarters we’ve discussed our desire to build scale in our retail franchise by screening for well-run banks in markets where we already operate. Part of our ongoing strategy is to selectively augment our organic growth engine with tuck-in acquisitions that meet our criteria: a granular, low-cost retail deposit base, low loan-to-deposit ratio, quality credit metrics, and a similar culture.
El Dorado fits that description very well, strengthening our physical and brand presence on the West Coast, with 35 branches across the Sacramento metro area, the Sierra Nevada foothills, in the Lake Tahoe community, and in the Reno area. The acquisition will launch us into some of the most desirable markets in both California and Nevada and will deepen our foothold in areas adjacent to our current branch network. El Dorado is ranked as the number one community bank in three markets including the vibrant and fast-growing Lake Tahoe area and within the top 10 in six additional markets.
Our total branch count will grow to 227 across the footprint, an increase of 18%. And with the addition of El Dorado’s 2.1 billion in deposits, our consumer franchise will represent approximately 26% of our total deposit base at just 88 basis points. El Dorado’s total cost of deposits in the third quarter ranks among the lowest nationwide. Additional attractive characteristics of this franchise include an 89% insured ratio, 60 million in average deposits per branch, and an average deposit account age of 14 years, excluding CDs.
With its highly liquid balance sheet and a loan-to-deposit ratio of just 24%, we see significant potential value as we deploy the excess liquidity. We will also be acquiring approximately 500 million in loans, predominantly made up of consumer mortgages with a 39% loan-to-value and an average loan size of 138,000. Both banks share a culture focused on providing high-quality customer service, a strong associate experience, and support for the communities we serve.
We expect the transaction to close in the first quarter of 2027, subject to the approval of El Dorado shareholders and customary regulatory approvals. Ram will provide a few additional details about the transaction shortly. Now, turning to a few brief comments on the third quarter, we reported net income of 272.3 million which resulted in earnings per share of $3.56. Balance sheet and fee income growth, strong asset quality metrics, and stable net interest margin contributed to an operating return on tangible common equity of 19.5% for the quarter. A few highlights from the quarter include record top-line loan production at 3.1 billion, driving 1.1 billion, or 11.1% linked-quarter annualized growth in average loan balances.
We maintained exceptional credit quality with just 13 basis points of net charge-off and an improved nonperforming loan ratio of 28 basis points compared to 31 basis points in the second quarter. For comparison, the industry-wide NPL ratio for banks reported so far this quarter had a median of 53 basis points. We had continued growth and momentum in our fee businesses. Total fee income from our institutional banking business increased 3.2% from linked quarter and nearly 18% year to date. Specifically, fund services’ contribution to trust and securities processing income grew 8.8% compared to the second quarter and more than 22% year to date, and corporate trust posted a nearly 19% year-to-date increase.
Additionally, corporate trust recently advanced in the league tables, now ranking as the number two municipal trustee in the country based on deal count, and in fund services we announced the continued expansion of ETF servicing capabilities, broadening our focus on supporting a variety of asset classes. Private wealth teams have brought in 1.2 billion in net new assets September year to date, already matching full year 2025 levels. Finally, our year-to-date results have produced positive operating leverage of 11.5%.
As I noted, we had extraordinary loan production in the third quarter. While we still expect a strong fourth quarter, gross production levels are likely to moderate from these record levels to be more in line with the first half of the year. On the capital front, on September 15th we redeemed 150 million of our subordinated debt. Our quarter-end CET1 ratio rose by 5 basis points from June to 11.50%. Organic growth remains our top capital priority given our long, uninterrupted track record of outperformance and growing loan balances.
At the same time, we’ve also demonstrated our ability to evaluate and integrate acquisitions that support our organic growth, as evidenced by our successful integration of HDLs. Now I’ll turn it over to Ram for more detail.
Ram Shankar (Chief Financial Officer)
Thanks, Mariner. The third quarter included 33.1 million in net interest income from purchase accounting adjustments, 9 million of which was related to accelerated accretion from early payoffs of acquired HDLF loans. The benefit to net interest margin from total accretion was approximately 22 basis points. Slide 10 of our third quarter deck shows projected contractual accretion which is estimated at approximately 23 million for the fourth quarter, 75 million for 2027, and 62 million in 2028.
Noninterest income for the quarter was 232.4 million, a decrease of 13.1 million from the second quarter. Drivers included a 16.1 million reduction in gains on investment securities following an exceptionally strong second quarter and a 7 million decline in company-owned life insurance income. Excluding the impact of investment security gains, mark-to-market on COLI, and the 1.8 million one-time gain on the sale of a building, we saw a sequential increase of 8.2 million, or 3.9%, in fee income, largely driven by a 5.7 million increase in trust and securities processing income along with other smaller positive variances outlined on slide 17.
Adjusting for those items, our run-rate fee income for the third quarter was approximately 218 million. Noninterest expense was 399.5 million, virtually flat from the prior quarter as outlined on slide 18. The 5.9 million decrease in salary and benefits expense was largely offset by increases related to timing of laptop purchases within supplies and services, timing of marketing spend related to deposit campaigns, higher occupancy costs coming from redundant service providers, along with a nonrecurring OREO loss of 1.5 million. Professional services included expenses related to our investment in AI and digital asset offerings.
We’ve selected Glean as the tool to help our business teams with day-to-day workflows and processes. Glean has been rolled out to nearly 1,000 associates who collectively have used the tool to prompt over 53,000 work actions. The work has generated more than 550 use cases to date from both customer-facing and back-office departments. These range from training, credit administration and portfolio management, board and management reporting, and others.
Business cases are being prioritized to achieve hard-dollar cost savings, process improvements, and overall improved productivity. Looking ahead, we would expect fourth quarter operating expense to range between 400 and 405 million, largely reflecting incentive compensation accruals related to company performance as well as technology project costs. Turning to the balance sheet, the 11.1% annualized loan growth Mariner mentioned was driven once again by nearly 22% annualized growth in average C&I balances, led by strong activity across the footprint led by St. Louis, Texas, and Utah. As Mariner mentioned, we posted extraordinary loan production of 3.1 billion in the third quarter. Loan yields continue to benefit from higher short-term interest rates and fixed asset repricing, as well as a mix shift towards C&I categories.
Customer sentiment remains strong, and our pipeline for the fourth quarter remains healthy. I will add the typical caveat that payoff levels remain hard to predict with certainty and will impact net growth levels. Average deposits, as shown on slide 25, increased 1.1% from the linked quarter. Average DDA balances declined 6.1% from the second quarter, reflecting expected seasonal disbursements within the institutional banking business. Reported net interest margin for the third quarter was 3.32%, in line with the prior quarter. Excluding the 22 basis points contribution from purchase accounting adjustments, core margin was 3.10%, increasing one basis point sequentially.
The primary linked-quarter drivers of core NIM included continued benefits from asset repricing and higher reinvestment rates within the lending and bond portfolios, and the impact of changes in liquidity levels resulting in a favorable mix shift, offset by a lower benefit from free funds due to DDA seasonality and higher interest-bearing deposit costs. Our cost of interest-bearing deposits increased nearly 4 basis points, reflecting the partial impact of the FOMC rate hike in September and, to a lesser extent, mix shift within deposit categories.
Our balance sheet remains generally interest-rate neutral, with approximately 55% of our 66 billion of earning assets considered to be variable and generally indexed to one-month SOFR rates. While approximately 52% of our 58 billion deposit book is indexed to short-term interest rates, the trajectory of margin in any particular quarter may be impacted by the timing of both FOMC rate hikes and how one-month SOFR prices in anticipation of those actions, and the mix of new loans and deposits.
As shown on slide 26, the indexed deposits will reprice immediately in response to FOMC action while loan yields reset with a slight lag on the contractual. Relative to the third quarter core margin of 3.10%, we expect fourth quarter margin to be relatively flat. Finally, our effective tax rate for the third quarter was 18.7% compared to 20.8% in the second quarter. The decrease was primarily driven by a discrete tax benefit from the release of valuation allowances related to certain state deferred tax assets. For the fourth quarter, our tax rate is expected to be between 21% and 22%.
Turning to the financial metrics of the El Dorado Savings Bank acquisition, transaction assumptions are on Slide 8 of the acquisition deck. With $2.1 billion in high-quality core consumer deposits and $500 million in loans, we view this acquisition as akin to a branch transaction. The purchase price consideration of approximately $500 million will be structured as a cash-and-stock transaction. UMB will issue 1.8 million shares to El Dorado shareholders based on a fixed exchange ratio of 13.553 times UMB shares for each share of El Dorado.
This transaction will provide an opportunity for customary cost synergies coupled with additional liquidity to continue funding our extraordinary loan growth. We expect the transaction to be modestly accretive to earnings in 2027. Now I’ll turn it back over to the operator to begin the Q&A session.
OPERATOR
We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one. Again, we ask that you pick up your handset when asking a question to allow for optimum sound quality. If you’re muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Casey Hare with Autonomous Research.
Your line is open. Please go ahead.
Casey Hare (Analyst)
So, Ram, wanted to touch on the NIM — the core NIM flat in the quarter. Just a little help on some of the drivers. Number one, the new money loan yields versus that 6.09%. And then just some updated thoughts on where cum beta can finish in this next up cycle versus the previous upcycle.
Ram Shankar (Chief Financial Officer)
Yeah, sure. As we said, we expect fourth quarter NIM to be consistent with where we were on a core basis. So some of the drivers are the usual ones, right? Fixed asset repricing. So if you look at our deck, we have more than $3 billion of loans priced at five and a quarter that are going to reset about 100 basis points based on that. We also have two and a half, two and a half billion dollars of securities that are going to reprice from 3.80% to—if you look—we’re getting close to 5.60% on new money yield.
So that’s consistently going to happen for us as you approach the rate cycle. The other drivers are just looking at loan yields excluding PAA; that was up 5 basis points. That’s a combination of, again, the fixed asset repricing and new money coming in. And obviously one-month SOFR started moving well ahead of what the Fed did in September as well. So that was a benefit. And then on the flip side of the balance sheet, it’s also driven by what’s happening with our index deposits. So as I said in my prepared comments, 52% of our deposits are indexed, and so far we’ve done a pretty good job early on with the soft index in terms of how we negotiate those rates. Obviously, as you know, the hard index deposits are very formulaic and they reprice. So generally I would say, same thing as the down cycle: we expect, you know, 90-ish percent beta on the hard index over time, maybe 65–70% beta on the soft index.
And then the rest of the deposit book should be, you know, generally priced. You know, given rates are as high as they are, there’s not a lot of pressure on, obviously, DDAs in the back book. So that’s kind of the entire picture of margin drivers. And the other thing that also happened the quarter, last couple of quarters, is just the mix that I talked about. If you look at our loan growth, a lot of it was—almost all of it was—C&I loan growth, which has a higher yield than any other loan category. And then when you look at bonds and excess cash versus loans, we had a lot more of loans as a relative percentage of earning assets. And that stuff will reprice on the way up.
Casey Hare (Analyst)
Yeah, exactly. Okay, great. And just lastly on the deposit front, was there any pulling of off-balance sheet funds onto the balance sheet this quarter? And just thinking longer term, the loan growth is great. The deposits have lagged it. I know you guys are in a good position at 69% loan-to-deposit ratio, but if these trends continue where loans significantly outpace deposits, at some point you’re going to bump up on that 75% loan-to-deposit ratio.
Would that force you to slow down loan growth or push up deposit pricing?
Mariner Kemper (Chairman and Chief Executive Officer)
I’ll take that. I mean, I think, unfortunately I don’t—if you’ve been listening to our calls, you know that we talk every year about a low point in the third quarter. So we have experienced a low point in the third quarter based on seasonality. Basically, we fully expect to have happen in the fourth quarter what always happens in the fourth quarter. And fully expect, if you look at our deck over time, the way loan growth and deposit growth worked year over year for that to continue to happen.
So we have zero expectation that what you just described is even remotely a scenario for us to encounter. So fourth quarter deposits will grow. We have a really nice line of sight and some really great corporate, institutional deposit growth in the first quarter. And so that’s not even a thing, I guess, is what I’d tell you.
Casey Hare (Analyst)
Okay, thank you.
Mariner Kemper (Chairman and Chief Executive Officer)
Thanks, Kate.
OPERATOR
Your next question comes from the line of Jared Shaw with Barclays Capital. Your line is open. Please go ahead.
Jared Shaw (Analyst)
Hey everybody, good morning. Thanks for the color on the trends going into the fourth quarter. Anything on fee income? You know, you’ve had really good success there. I mean, how should we think about the rate of growth coming off of, coming off of core fees with some of those newer initiatives?
Mariner Kemper (Chairman and Chief Executive Officer)
Yeah. What I love about our remarks every quarter and year in and year out is that our strategy is working. So the good news is what you have seen, you should continue to see. Our fund services team is on fire. The pipeline is very strong. With the addition of our ETF business, we expect the coming year to be very strong. Just in the ETF side alone, we’ve talked about how that business has changed over the last five or six years from having to rely on smaller, younger businesses to really being able to win large mandates from large existing clients and prospects.
So there’s not a piece of business we can’t win. And we’re talking to everybody and we have a really deep, awesome pipeline. So we’re very excited about that business. And as you heard in the prepared remark, our corporate trust business—we’ve just gone up to number two in the league tables—and, you know, with offices on both coasts and throughout the country, we’re picking up bigger mandates. You know, we talked about this before where now that we’re on the coast, if you have a sewer and water deal in Illinois or Iowa, it could be a $300 million deal. You have a sewer and water district in New Jersey, it can be a billion-dollar deal.
So it’s really changed the dynamic of the business over time. We also have been able to attract a lot of talent in that business, in both those businesses, but particularly in the corporate trust business, as the larger banks take their eye off the ball and really aren’t focused on smaller businesses. So, like, $100 million business for a large national bank is one they’re not interested in. For us, we’re pretty excited about $100 million business.
So we find ourselves picking up people who feel forgotten from some of these larger institutions. And so that’s been really great. And then it’s just kind of across the board. There’s nice, solid strength through the other businesses. And we talked about having a billion and a half in new asset growth in our wealth business, which is better than where we were full year last year. So just hitting on all strides. Teams are really doing well. The technology is leverageable, the teams are leverageable. We couldn’t be more jacked about our institutional and fee businesses than we are right now.
Jared Shaw (Analyst)
Great. Appreciate that color. And then secondly, looking at the paydowns and payoffs, was there anything unusual in third quarter or just as you get bigger, we should think that that’s sort of a good, stable level offset by the strong production?
Mariner Kemper (Chairman and Chief Executive Officer)
Yeah, we’ve been trying to, you know, assess that ourselves—whether it was unusual. I think it just was a large quarter. You know, I think we are a bigger company and just overall, over time, the base should grow. We think that the third quarter was slightly larger than what the average should be going forward. But we do have a bigger pace. So we’re not totally, you know, totally sure ourselves, but it’s more likely to kind of reset to the last couple quarters than it is to stay at $3.1 billion.
But we do honestly don’t know ourselves because we do have, you know, a bigger footprint with a lot of new people hitting stride. We will know, you know, a couple—maybe another four quarters down the road—what our new baseline is with Heartland. But right now we’re kind of feeling our way through that.
Jared Shaw (Analyst)
Great, thanks.
Mariner Kemper (Chairman and Chief Executive Officer)
Thanks, Jared.
OPERATOR
Your next question comes from the line of John Arfstrom with RBC Capital Markets. Your line is open. Please go ahead.
John Arfstrom (Analyst)
Hey, thanks. Good morning. Just following up on Jared’s question on the loan production numbers. Obviously very strong, better than the prior quarters. I understand you expect some moderation, but anything that you would call out on that, you know, over $3 billion production number?
Mariner Kemper (Chairman and Chief Executive Officer)
No, just that it was a strong quarter and we think—exclamation point. I think that it’s probably a little larger than what we should expect. You know, probably resets a little bit more to a three-quarter average looking backwards, but we don’t really know this.
Jim Ryan (President of the holding company and CEO of UMB Bank)
This is Jim Ryan. Much more C&I driven, just as a takeaway. We saw additional payoffs in real estate that we’ve expected, and that wasn’t like we lost clients. It just rolled to the secondary market on construction loans, which is exactly how that business is supposed to work for us. But we just had a lot of things booked, whether that was delayed from second quarter or pull-through from fourth quarter. But we feel like our previous run rate is also very strong too.
So we think that will normalize back in, as Mariner said, in the first half of the year. But nothing that stands out as a certain industry or segment that was leading the charge. It was very diversified across the board.
John Arfstrom (Analyst)
Okay, thank you. Very helpful. Maybe Mariner, El Dorado—I understand it’s not a huge deal, but I think it makes sense and it’s a good fit. Can you maybe talk about the medium-term plans you might have in those markets other than taking the loan-to-deposit ratio up, and then touch on just overall M&A appetite that you might have?
Mariner Kemper (Chairman and Chief Executive Officer)
Yeah, I’d love to take a moment on El Dorado. I spent a lot of my time getting to know other bank CEOs that think about the customer and the associate the way we do across our footprint and got to know the Cooks, you know, over the summer and late last year, and we realized very quickly that we thought about the world the same way, really care about our associates, really care about our communities and our customers. And they have, you know, they’re, we’re over 110 years old or a little over 50 years old, and multi-generations just like us, we really hit it off.
And the near-term goals are to do no harm, let them continue to do what they do so well in the Sacramento and surrounding areas. And then the other thing that’s really neat is the Nevada part of that is newer. And what’s happening with the flight from California into Nevada with a lot of the tech money that’s been made and a lot of the wealth that’s been made in California, we think that there’s a really nice early-day benefit that could have longer term, really big upside surprise is what’s happening around Lake Tahoe.
And if you look at the map we have there, there’s quite a presence right around the lake there and up and through Reno. And there’s quite a bit happening with movement from one state to another into better tax environments. And this bank has already benefited a lot from that. We think we can kind of double down on that. And really. So I think that’s going to be in some of the, some really great early and long-term upside surprise is what’s happening in Nevada.
And then as we take our corporate and commercial banking franchise and product set up from Fresno onto the Sacramento Valley, we think—well, I’m excited that we have time. We don’t really need to worry about it yet. I mean, we can kind of take our time to do that, right, leverage our way into Sacramento with some hiring and that kind of thing and maybe positioning of branches around the greater metro area. So we’re very excited about that. But early on it’s just to leverage, you know, leverage the franchise into the whole organization with those great deposits and the under-levered situation.
We’re very, very excited about it. And you can see that the branch footprint is very contiguous to the one we have. I love the fact that it’s a dense footprint. I love the fact that it increases our overall branch network significantly and, you know, the low cost improves. So I mean this deal will improve our interest-bearing deposits by, as a company, by seven basis points. And it’ll take our total cost of fund deposits down by four basis points. It’ll be accretive in ’27 and beyond. And we’re just, you know, it’s just one brick at a time. We’re just—this is a very additive, beautiful deal that just fits right into who we are like a glove.
John Arfstrom (Analyst)
Thank you.
Mariner Kemper (Chairman and Chief Executive Officer)
Thanks, John.
OPERATOR
Your next question comes from the line of Janet Lee with TD Cowen. Your line is open. Please go ahead.
Ram Shankar (Chief Financial Officer)
Morning, Janet.
Janet Lee (Analyst)
Good morning. Morning. Maybe I missed it. Appreciate all the color around the betas for your different types of deposits. Did that include the El Dorado $2 billion of low-cost deposits? Could you maybe just put the pieces together and give you a rough estimate around what the combined beta on your interest-bearing deposits could be this cycle? Maybe the mix or the growth of the deposits by category could shift versus what you have on your side going forward?
Ram Shankar (Chief Financial Officer)
Yeah, a couple of things. I mean the $2 billion, while it’s significant, it’s not going to materially change the numbers I gave you. The numbers I gave you are just core UMB Financial. And then one of the things I would say—Mariner said it and it’s in our deck. This quarter their cost of deposits was 88 basis points. Last quarter was 93 basis points. So that’s kind of bucking the trend of what’s going on with, including us, the rest of the industry with their deposit costs.
So I don’t expect a whole lot of changes to the beta numbers that I gave earlier from El Dorado. Again, these are very granular core deposits. The average age of the client, excluding CDs, is about 14 years. So no material changes to those beta numbers. And on the mix of future growth, Mariner said we have a strong pipeline of commercial and institutional deposits. Obviously we’re running deposit campaigns as well, as you can see from our marketing spend. So it’s multi-pronged.
Okay, got it, thanks. And staying on that topic. So, you know, it looks like you’re still alluding to a slight liability sensitivity before turning asset sensitive. You’ve talked about cordon being relatively stable in the fourth quarter. So should we expect a modest dip in core NIM and then NIM expansion in outer quarters, or because of the fixed-rate asset repricing and you still have over 50% of your earning assets floating rate, could it be more of a stable to upward pattern?
It’s more or less stable, because one-month—obviously we’ll know today—unlikely that the Fed does anything today. So whenever one-month SOFR starts repricing for that, we’ll see that benefit on a lag basis on the lending book. But as I said earlier, the fixed-asset loans and bonds are happening on a daily basis organically, and then it’s just what will happen to deposits—hard and soft index—when the Fed does move, assuming that it does move in December.
So I would say it’s more expected to be stable. The sensitivity post Heartland for any FOMC moves dramatically reduced. Before Heartland, where we got a lot of consumer deposits, our sensitivity was initially the first couple of quarters—because of the deposits repricing faster than loans—you would see a small dip in margin. That sensitivity had been greatly reduced since then along with the remixing on the asset side, more C&I. So we’re—I think, what are we, 68% variable now?
Two-thirds of. Variable. And then we have a small base. Yeah, we have a CLO book and some other CMO floaters that we have. So that’s kind of the 58% of our earning assets are variable in nature as well. So, as I said in my prepared comments, I would say we are pretty interest-rate neutral from a balance sheet perspective. And slide 26 demonstrates that.
Janet Lee (Analyst)
Great. Makes sense. Thank you.
Ram Shankar (Chief Financial Officer)
Thanks, Janet.
OPERATOR
The next question comes from the line of Timur Brazier with UBS. Your line is open. Please go ahead.
Mariner Kemper (Chairman and Chief Executive Officer)
Morning, Timo.
Timur Brazier (Analyst)
Hi, good morning. Morning, guys. Back on the M&A conversation. You guys have been very clear in the past just in regards to tailoring, that you wouldn’t do anything in advance of that $100 billion threshold getting lifted. I’m wondering, with some momentum gaining there, how we should think about future deals. Obviously the last two have been very retail focused, El Dorado smaller. Is that still the primary focus—retail and then size becomes a little bit more fluid—or just given the economics on the smaller transaction, is the likelihood that we’re going to continue seeing smaller tuck-in deals versus maybe something larger then?
Mariner Kemper (Chairman and Chief Executive Officer)
Yeah, Timur, I would just repeat what I’ve been saying, really, which is our capital priorities are investing in the company through organic growth first. And that works really well. We’ve got it dialed in. To the extent that we can, through networking and staying in touch with the overall banking community, run into opportunities that we would define as tuck-in, we will certainly review those and see if they’re the right strategic and financial fit for us, particularly as they relate to in-market, you know, places where we want to be more meaningful, get a more meaningful presence wherever we already are.
So that’s similar. Same story. I use the definition of tuck-in, and I would say how I define tuck-in is where we retain—small enough that we retain control in every way you would define that. Control the boardroom, control the culture, control the staff, the team, the leadership. So control in every way that you can define it is how I would define what a tuck-in looks like. And then as it relates to retail or otherwise, it’s really more about making sure that we’re adding value. And a bank, traditional bank deal for us is about a quality core deposit franchise that’s not fully levered up. We don’t need somebody else’s lending prowess. We’ve got a lending juggernaut as a machine. We know how to do that on our own. We don’t need somebody else’s—we don’t need to pick up somebody else’s problems. So it’s really more about the deposits, and that kind of by default translates into something more largely retail-based.
It also—more retail-based is more granular, smaller, lower-cost average deposit size, which is also attractive. So that’s what I would say about all that. And again, it’s not something we have to do. But strategically I think any bank should be looking at all their options. And if you find high-quality institutions that can make your company more valuable over time, every company should look at those things.
Timur Brazier (Analyst)
Makes sense. Thanks for that. And then maybe just on the sustainability of the cost of deposits from El Dorado, clearly very low, but also very little in terms of loan-to-deposit, you know, those deposits being lent out. Is there a level of confidence that the incremental cost of deposits at El Dorado is going to stay well below the broader base, or once you start maybe leaning on some of those deposits to actually fund growth in some of those markets, the cost there is going to be greater equivalence to kind of where legacy is?
Mariner Kemper (Chairman and Chief Executive Officer)
We are not expecting any change at all in that other than just traditional market pressures that may exist already today. And so, no, I think we may mix into that footprint some small business, middle market and commercial deposits over time, which I suppose over time would bring up the average cost of the deposits in the market area. But what’s there today and expanding and building on the retail base there, building a few more branches, et cetera—I think all that should stay just right in line with what we see today.
Timur Brazier (Analyst)
Great. Thanks for the questions.
OPERATOR
Your next question comes from the line of Brian Wolzinski with Morgan Stanley. Your line is open. Please go ahead.
Brian Wolzinski (Analyst)
Hi, thank you for—hey, morning. Thanks for taking my questions. I wanted to ask about the non-interest-bearing deposits. You’ve highlighted that 3Q is typically the seasonal low for UMB Financial. You typically see some nice growth in the average balance in the fourth quarter. To what degree do higher rates weigh on non-interest-bearing growth? And should we be expecting a smaller increase in NIB in the fourth quarter?
Ram Shankar (Chief Financial Officer)
So, you know, we’ve talked about—we have a lot of episodic ups and downs. Averages are more important than end of period. You know, the second–third quarter is traditionally a low point for us in general. I was looking the other day at our previous year second to third quarter, and actually this year is better than the previous year as far as the DDA decline. So there’s nothing under the hood related to a higher-rate environment that’s causing that.
These are operating dollars, you know, so that’s an important point—the DDAs that are really on our balance sheet are operating dollars. They’re not hot money for the most part. And so to the extent that businesses are operating as they normally would, they’re going to need operating dollars. So the stuff that we have off balance sheet is already off balance sheet, you know what I mean? Excess dollars are already wherever they’re going to be. So what you see from a DDA perspective is general operating money.
And it’s just a seasonally low point for us in the third quarter. We expect it to build as it always does—again, looking back historically for us, we expect similar trends to build back up DDA balances in the fourth quarter.
Brian Wolzinski (Analyst)
Got it. Appreciate that. And then going back to the loan production that you saw in the third quarter, can you talk a little bit more about where specifically UMB Financial is gaining incremental market share right now and also what some of the key factors are? Is it speed to close? Are you being more flexible on pricing? What’s driving that incremental market share for UMB Financial right now?
Mariner Kemper (Chairman and Chief Executive Officer)
Are you asking us to give our secret sauce on this call to everybody and all our competitors? Just kidding. But I guess the thing I’d say is for us, what I would do is I just point you to, you know, 22 years of double-digit loan growth every quarter, quarter in and out, and I would, without giving you all the level competitive detail as to how we win, I would just say that we do a bottoms-up budgeting process that is not dependent on some multiple of GDP.
And so we look at the officer capability, capacity, tenure, and pipeline and couple that with what is our penetration in both a geographic market as well as a vertical as well as the vertical markets across our footprint. And the runway for that for us, by ring-fencing and keeping our talent, is kind of unending. We can’t see the end of the runway for us to continue to outperform just by keeping our people and executing into market share gains and making sure that we build over time capacity by bringing people up under our team members so that they can be released to do more work.
So there’s nothing real special to it other than, I guess, you know, we hail from the Show-Me State, and I would say that the proof’s in the pudding. You can kind of see it in our results. We do it quarter in and quarter out, and I would say that we don’t see any reason why we can’t keep doing it. And you want to add to that, Jim?
Jim Ryan (President of the holding company and CEO of UMB Bank)
I would just add to that, Brian, that while we’re not giving away our secret sauce, as Mariner said, which I love, we talk about being flexible, nimble, and responsive. In commercial banking, the flexibility is we might be flexible on terms or covenant or what have you, but we are not flexible on credit quality. That’s the underlying ingredient, if you will. That has remained true for the history of the company. Our process allows us to be more responsive, the way we go to market and the way we have regional credit officers in each market along with local leadership, so we’re able to turn things around more quickly.
And by having experienced bankers, you add more value when you’re sitting in front of a client. But at the end of the day, it all starts with our people and calling on the right types of companies that, when we do have success and are awarded the business, it shows up in a meaningful way. And that’s been repeatable again for the last 20 plus years. So if you’re wondering how we continue to do it, it’s not by being the cheapest or giving the house away on various covenants.
Credit quality remains at the core.
Brian Wolzinski (Analyst)
And given that El Dorado is based in California—I mean, California only makes up about 3% of your loans today—is it fair to say that’s sort of where the new incremental opportunity is? Does that open up a lot for you and Baker?
Mariner Kemper (Chairman and Chief Executive Officer)
I mean, California for us, you know, after Heartland, we’ve got whole—We have a litany of opportunities for significant expansion. California is one of them with a, you know, fourth or fifth largest economy depending on how you measure it. You know, we’ve got Twin Cities, we have Utah, we have Texas. All these are nascent, young markets for us with great people on the ground. In California, you know, we have Alice Leaney as our new president out there, and we’re very excited about what he brings to the table.
And so California is one of the opportunities, but it’s one of many. Brian, really appreciate it.
Jim Ryan (President of the holding company and CEO of UMB Bank)
Mariner mentioned it. But in our existing markets, there’s runway, and we have two major metros that we’re number one in market share. So market penetration is the core to how we plan on continuing to grow. And what that means is we take other banks’ clients in those markets. It’s not dependent upon a growing economy or GDP. It’s market penetration, and that continues to be the number one focus on how we grow the company lending-wise.
Brian Wolzinski (Analyst)
Got it. Really appreciate all that detail, and thank you for taking my questions.
Mariner Kemper (Chairman and Chief Executive Officer)
Thanks, Brian.
OPERATOR
Your next question comes from the line of Brandon Rudd with Stephens. Your line is open. Please go ahead.
Brandon Rudd (Analyst)
Morning. Thanks for my question. So most of them have been answered. If I could just maybe ask one more modeling question. Can you give us some guidelines or guideposts for the capital impact of El Dorado, whether it’s TBV dilution or CET1?
Ram Shankar (Chief Financial Officer)
It’ll be about 15 to 20 basis points diluted to CET1 at close. But given the pace of our capital generation between now and close, we’ll be right back where we are. I mean, we’re at 11 and a half percent CET1, for instance, at 9/30, and we’ll be north of that post-deal as well. So it’s not material from that standpoint.
Brandon Rudd (Analyst)
Okay, perfect.
Ram Shankar (Chief Financial Officer)
Thank you.
Mariner Kemper (Chairman and Chief Executive Officer)
Thanks, Brent.
OPERATOR
Your next question comes from the line of Brendan Nosal with Hovde Group. Your line is open. Please go ahead.
Brendan Nosal (Analyst at Hovde Group)
Hey, good morning, folks. Just one for me. Wanted to approach the earlier loans and deposits question from more of the opportunity side as opposed to the risk side. So if I look back over the past year or two, richer balance sheet, right? More loans plus cash, a more utilized loan-to-deposit ratio. Just wondering how much further you’re either able to or willing to push balance sheet capacity given that you clearly still have more headroom versus your typical bank.
Mariner Kemper (Chairman and Chief Executive Officer)
You know, Brandon, I think if you’re implying you think that our loan-to-deposit ratio is creeping on us to like to a point where that ends up starting to look different—is that what you’re alluding to?
Brendan Nosal (Analyst at Hovde Group)
I’m more coming from the angle of you have a richer, more profitable balance sheet than you had a year or two ago just given the richer mix. And how much more willing are you able to let that run to drive a continued richer mix—more of an opportunity as opposed to a risk?
Mariner Kemper (Chairman and Chief Executive Officer)
I’m not sure I understand the question.
Ram Shankar (Chief Financial Officer)
Yeah, if you’re talking about cash, I mean, we had excess cash because of the buildup during COVID and all that. So we’re comfortable where cash is from the current standpoint. And as we said, you know, our loan-to-deposit ratio is 69 right now. You know, if you look at the highest point, we’ve been 74 or 75. And so, you know, we’re not doing that intentionally in the sense that we’re not taking our loan-to-deposit ratio higher. As Mariner said, both sides of the balance sheet, we see a lot of opportunities from the pipeline perspective.
Mariner Kemper (Chairman and Chief Executive Officer)
Yeah, I guess I would—So now that I thought that’s what you were asking. So, if you were to look at page 40 in our deck, that’s the way to think about the business. And we fully expect to keep doing what we’ve been doing by having the deposits continue to keep pace with loan growth through all the different activities. But one of the beauties of our company is all the different sources of deposit growth that we have and the strength of our institutional businesses and our wealth business, our private banking business, and our small business operation.
If you look at the middle bar there, our loan-to-deposit ratio, no matter what has happened through there, you know, it’s bumped around between, you know, 68 and 65. You know, any one quarter maybe it bumps up a little over 70 maybe. And we are happy to be at a higher level if that happens. But we fully expect to fund our business with our deposits. So the real value of a banking franchise is in their deposits. If we ever felt like we were having to buy money to fund our loan growth, we would feel like we lost our strategic footing.
And so we’re very focused on being able to, over time, keep deposit growth pace with our loan growth. And we think we can do that. We’ve done it. If you look at, again, page 40, you can see what we do year in and year out. No reason I can see that we wouldn’t be able to continue to do that on a go-forward basis.
Brendan Nosal (Analyst at Hovde Group)
Yep, perfect. Thanks for taking my question.
Mariner Kemper (Chairman and Chief Executive Officer)
Thanks, Brendan.
OPERATOR
Your next question comes from the line of Nathan Race with Piper Sandler. Your line is open. Please go ahead.
Nathan Race (Analyst at Piper Sandler)
Yeah, hi guys, good morning. Thanks for taking the questions. Mariner, you alluded to a bit earlier on the fund services growth in the quarter, but it seems like it’s one of the strongest sequential growth that we’ve seen within fund services over the past several quarters. And, you know, revenues in that line, you know, 22% year to date over last year. So just curious if you can just kind of unpack if there were any kind of unique client wins and just generally is kind of the rate of growth that we’ve seen year to date and over the second quarter kind of sustainable within that line going forward?
Mariner Kemper (Chairman and Chief Executive Officer)
Yeah, you know, the business is really just hitting its stride. I think it just gets better from here. The pipeline is very robust. The client sizes are bigger, the opportunities are larger, deeper, broader. I think the business is kind of hitting its maturity and its ability to really compete across all the asset classes and the asset types. And I just think it gets better from here. And there’s no particular account I would point to that’s looking backwards that is part of that nice growth, 22% growth.
I’d say it’s broad. You know, we talked a little bit about a few things that are driving it. That is the platforms for democratizing investing—the guys that are making available alternative investments to a broader base of clientele. Those platforms that we were partnering with at the very beginning of that, you know, we just benefit from their growth. The ETF business—it’s early days, we’re just launching that, but we already have line of sight into the clients that are going to come into that.
That’s why we launched it. And that also ties into my comments about some of the visibility of deposit growth in the first quarter. So, yeah, I mean, we’ve just got a great team, a great product set, and they’re just hitting stride. Oh, and I would also add that the custody side of the business doesn’t totally depend on just the fund services business anymore. We’re fully selling that across all verticals—you know, insurance, government, corporate—and having a lot of success there as well.
Nathan Race (Analyst at Piper Sandler)
Got it. That’s helpful. Just one more for me on operating leverage and kind of the expectations there around expense growth. You know, historically, you know, expenses have been growing, you know, 6–7%, you know, absent the HLF acquisition from last year. But just curious, given some opportunities to maybe become more efficient with AI and back office areas, you guys may be thinking that operating leverage can accelerate into next year and perhaps ’28, you know, notwithstanding the acquisition impact.
And just if you can comment kind of what opportunities you’re seeing to just streamline operations with some of the technology out there these days.
Mariner Kemper (Chairman and Chief Executive Officer)
Yeah, I mean, I don’t want to go down a rabbit hole here on that. Ram had some comments in his prepared remarks about that. You know, I think you should hear more from all of us about that over time. We absolutely think as a company we will become more efficient as we deploy AI into things like credit administration, fraud detection, all those kinds of things across the organization which we are currently deploying. I don’t have—it’s too early. It’s too early to give you the actual impact. But all those projects are underway across the whole company.
Yeah, it’s just the latest iteration of, you know, the technology evolution and companies sure as heck better be deploying all this everywhere they can. One of the things we want to do being a financial institution where large companies depend on us day in and day out is we want to make sure we’re doing it judiciously and carefully so that we’re not—while we’re making ourselves better, we don’t increase risk at the same time. So we’re taking our time to do it right and put all the governance in place along the way.
On the front end, we have over a thousand associates now using Glean and we’re seeing all sorts of benefit on a daily basis as we measure how that’s being used. So again, part of that is like, let’s make sure we measure how that’s being used, how people are using it, how the tokens are being used, do it very judiciously. But I would tell you we’re using it everywhere, plan to deploy it everywhere in every way to make ourselves more efficient. Take tasks, repeatable tasks out of human hands, take friction out, reduce human error.
And to me, more importantly than all this is allow our people to do more as opposed to focusing on reducing staffing levels—it’s allowing our great people to do more. So very excited about the way we’re using AI. I think it’s a great benefit and it’s just kind of next-gen tech in my mind, the way I think about it. You guys want to add anything to that?
Ram Shankar (Chief Financial Officer)
I think you covered it. I think you covered it well. There are lots of small wins. There have been some bigger wins, especially in the fraud area, and look forward to that continuing.
OPERATOR
Your next question comes from the line of Terry McAvoy with Wells Fargo. Your line is open. Please go ahead.
Terry McAvoy (Analyst at Wells Fargo)
Thanks. Good morning. Just one question for me. The NDFI loans represented about, call it, 35% of the net loan growth last quarter. And I’m just comparing the presentations—Q2, Q3. So my question is, what NDFI verticals were behind the $400 million increase? And how sustainable is that? Is that growth?
Mariner Kemper (Chairman and Chief Executive Officer)
Yeah, thanks for that question. You know, there’s nothing really—we looked at that and thought, you know, there’s something that stands out here. And I would say that nothing really stands out in there. It’s kind of broad-based. You know, we have this big fund services business, so there’s some subscription lines in there. Most of it, as we studied it, is just current customers using their lines and borrowing money. So that’s really kind of what happened in the quarter.
For the most part, it wasn’t actually growth in client level for the most part. It was more using the existing debt with existing clients. I would just say, you know, while it does show up as part of our loan growth in the quarter, I would remind you that from my vantage point, NDFI really is just a reclass. Most of these clients have been doing business with us for 20-plus years. Just as a general reminder for everybody, NDFI was just a reclass done by the government so they could have better vantage point into how banks in general were lending to other companies who did similar things to us.
And so it wasn’t supposed to capture a new trend. It was really more of a reclassification. So I just want to remind you of that. So for us, that’s all it was. There really is no NDFI growth on our balance sheet. It’s just a classification of things we’ve been doing forever. So nothing really to note—customers using their lines and expanding their businesses and such.
Terry McAvoy (Analyst at Wells Fargo)
Great. Thanks for the added color.
OPERATOR
Your next question comes from the line of David Feaster with Raymond James. Your line is open. Please go ahead.
David Feaster (Analyst)
Hi, good morning everybody. I wanted to start just following up on the credit side. Obviously, you know, you guys are very disciplined on credit. You got a strong track record. You know, your credit metrics are really good. But as you dig into the portfolio, is there anything, you know, as you talk to your clients, is there anything that you’re watching a bit more closely or proactively maybe managing out or throttling back on? And just as you stress the book from higher rates, is there anything that you’re maybe watching a bit more closely?
Mariner Kemper (Chairman and Chief Executive Officer)
It’s a great question, David. I guess how I’d answer that is we’re all trained pessimists. So, you know, Tom and Jim and myself, who are all in this room together, have been doing business together and approving loans together for, you know, 30-plus years together. And, you know, we’ve seen just about everything and we like to think we’re getting smarter as we go through all the things we’ve been through. And, you know, we believe in gravity as a company.
We believe what goes up comes down. We’re always worried. And I would just say that the way we underwrite every credit we underwrite is if it’s going to go bad and how are we going to get our money back. So, you know, we don’t worry unusually about our own portfolio. I mean, if you’re asking comments about the economy, I could spend the next 30 minutes talking to you about how I’m worried about the economy, but that’s why we take such good care of our own credit portfolio.
So, you know, we’ve gone from 2004—$2 billion in loans and 22 basis points of charge-off—to $42 billion in loans today and 13 basis of charge-off. So, you know, we like to think we get—the bumps and the bruises make us smarter and keep us out of trouble. You know, one of the things we do really well is we identify challenges and potential challenges on our watch list. You know, so the top category of our watch list, the fives, can look like an EKG or the Rocky Mountains because we’re quick to put stuff on there.
But what you’ll notice is the very bottom line, the charge-off line on our chart that we would produce, is zero. You know, so we have next to zero charge-offs because we’re quick to take action, quick to identify problems, and quick to manage things. So I guess, you know, this is something I’m most proud of and care about the most. And, you know, we worry a lot about credit, and that’s why we have such a clean book.
David Feaster (Analyst)
Okay, that’s awesome. And then maybe just following up on El Dorado, your bigger question.
Mariner Kemper (Chairman and Chief Executive Officer)
Just—sorry, I’ll just say, your bigger question about the client base: they’re basically all talking about the economy. They’re concerned about it, but they’re still cautiously optimistic. We’re not hearing a lot of deep concern from our customer base.
David Feaster (Analyst)
That’s encouraging. And maybe just following up on El Dorado, I mean, look, obviously you’re getting a ton of excess liquidity, great core deposit base. How do you think about, you know, as you close—I mean, there’s going to be some opportunities to maybe reinvest those or reposition the book—or how do you think about using that excess liquidity? And maybe as you think about managing your rate sensitivity.
Mariner Kemper (Chairman and Chief Executive Officer)
Well, I mean, how we plan on using that liquidity is, you know, we want to help our customers build their lives and borrow money from us to do so. And we’re excited to be able to deploy that with our customers both in California and elsewhere. We would love to put it to work right there in those communities, but we’re excited to do that. And I mean, as far as the, I guess, the investment book—if you were asking about that—Ram can take that.
Ram Shankar (Chief Financial Officer)
Yeah, so they have $1.4 billion of high-quality mortgage-backed securities primarily. So, as part of the acquisition, as you know, David, we left the market so they’ll come to current yields—current market yields, call it five and a quarter or even higher than that. So that’s a pretty good book in line with what we would buy from a pre-purchase analysis and everything my treasury team does here. So that’s a pretty quality book. And then we’ll use the existing cash flows both from our existing bond portfolio and new deposit growth to continue to fund our organic growth strategy.
David Feaster (Analyst)
Terrific. Thanks everybody.
Mariner Kemper (Chairman and Chief Executive Officer)
Thanks, David.
OPERATOR
Your next question comes from the line of Ben Gerlinger with Citi. Your line is open. Please go ahead.
Ben Gerlinger (Analyst at Citi)
Hi Ram. Over the past four quarters you’ve given a guide of NIM being flat-ish, and it’s been in the ish but it’s always an upward bias. So just kind of thinking, like, when you look at over the past year, what has outperformed when you kind of give that forward NIM to being better than flat?
Ram Shankar (Chief Financial Officer)
So the 1 basis point this quarter, and I would say if I had to pick one, it was probably the mix of assets within the loan book in favor of C&I and then less cash. You know, cash makes 388 today, and if I take the same funds and make a new loan at six and a quarter, that helps at the margin what the loan yields are doing. That’s why we have a 5 basis points increase in our core loan yields. I think that’s a big part of the remixing, and then everything else, right?
Remixing within the fixed asset repricing that we talked about within the bond portfolio and loan portfolio. Again, with the amount of deposit moves and lending that we do, it’s always hard to predict margin, but, you know, I feel pretty good that we got to within a basis point of where it was last quarter and, you know, if I outperform in the fourth quarter, it’s because we have more deposit growth coming in. The other could be off plus or minus a couple of basis points.
So I feel pretty good about, you know, margin guidance overall. Obviously, as I said in my prepared comments, the timing of when the FOMC might do something—October versus December—would impact that as well.
Ben Gerlinger (Analyst at Citi)
Gotcha. No, that’s helpful. And then Mariner, you sounded open to doing some deals, and you kind of gave some guide of, like, boardroom composition and culture and things like that. But in theory, like, you could have a pretty wide range in terms of assets. Is there a ceiling? I mean, considering if you’re looking at just boardroom itself, like you could in theory do something like 25 billion. I don’t want to put words in your mouth, but it seems like you’re open to doing deals with a bias towards the smaller end, but you’re agnostic on size.
Is that a fair way to frame it?
Mariner Kemper (Chairman and Chief Executive Officer)
No, I wouldn’t say we’re agnostic on size. A couple things are of note: we’re approaching 100 billion and we need to make sure we’re ready for that. And we would not—because we’re not ready today. While we have a plan, we’re not ready today. We would not do a deal that would put us on top of that number. So that’s important for you to know when you think of those numbers you’re throwing around. And then the other part about board composition—the idea, what I was trying to get at there—was that I like my board and I don’t need somebody else’s board. So to the extent that I have to do a deal that’s of a size where I’m giving up board seats, we don’t need to do that. So that was what was intended to help you with sizing—is typically when you’re giving up a percentage of your company of any meaningful size, you’re giving up board seats.
So that was where I was trying to take that. If that helps.
Ben Gerlinger (Analyst at Citi)
Yeah, absolutely. Yeah. I appreciate it.
Mariner Kemper (Chairman and Chief Executive Officer)
Thank you. Yeah, thanks, Rick.
OPERATOR
The last question comes from the line of Anthony Allian with JP Morgan. Your line is open. Please go ahead.
Mariner Kemper (Chairman and Chief Executive Officer)
Oh, we didn’t intend to call out any macro headwinds in the press release. We did. I think the loan growth, what we try to do is give a kind of a look at the next 90 days. That’s about as much as we normally do. And what I was trying to guide toward for fourth quarter was a loan growth rate that looks more like the last, the third quarter and the second quarter, or, sorry, the second quarter and the first quarter, than the third quarter. Does that make sense?
Oh, yeah. I think those are just backdrop conversations. They were not intended to guide you towards loan growth. No, that’s a great question. Absolutely not. It’s a small enough deal. Our team has got really good muscle memory. The government is in a place where they’re very helpful and kind of moving things along. This is a, we’re looking at this more like a branch deal, not a heavy lift. I know all my people are looking at me thinking they’re going to be, yelling at me because they’re going to be, they’re going to be doing the work. But long story short, no. It shouldn’t keep us from doing more M&As if the right deal came along.
Yep. Thank you.
OPERATOR
We have reached the end of the Q and A session. I will now turn the call back to management for closing remarks.
Mariner Kemper (Chairman and Chief Executive Officer)
I guess I jumped again. Thanks, everybody. We’re really thrilled about our quarter and about joining up with the Cook family in California and all the great things we’re going to do. So thanks for the time and the support. We’ll talk to you soon.
K. Gregory (Investor Relations)
Thanks, Mariner. And if you have questions, you can always reach us at 816-860-7106. Thanks and have a great day.
OPERATOR
This concludes today’s call. Thank you for attending. You may now disconnect.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.
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