UMB Financial Corp (UMBF) 2023 Q2 法說會逐字稿

Good morning or good afternoon, and welcome to the UMB Financial Second Quarter Invesco. My name is Adam, and I'll be your Operator today. (Operator Instructions) I will now hand the floor to Kay Gregory, SVP and Director of Investor Relations, to begin. So Kay please go ahead when you are ready.

早安或下午好，歡迎來到 UMB Financial 第二季度景順。我叫 Adam，今天我將成為您的接線生。 （操作員說明）我現在請資深副總裁兼投資人關係總監 Kay Gregory 開始發言。所以，凱，請在準備好後繼續。

Good morning, and welcome to our second quarter 2023 call. Mariner Kemper, President and CEO; and Ram Shankar, CFO, will share a few comments about our results. Jim Rine, CEO of UMB Bank; and Tom Terry, Chief Credit Officer, will also be available for the question-and-answer session. Before we begin, let me remind you that today's presentation contains forward-looking statements, which are subject to assumptions, risks and uncertainties. These risks are included in our SEC filings and are summarized on Slide 47 of our presentation. Actual results may differ from those set forth in forward-looking statements, which speak only as of today. We undertake no obligation to update them, except to the extent required by securities laws. All earnings per share metrics discussed on this call are on a diluted share basis. Our presentation materials and press release are available online at investorrelations.umb.com. Now I'll turn the call over to Mariner Kemper.

早上好，歡迎參加我們的 2023 年第二季電話會議。 Mariner Kemper，總裁兼執行長；財務長 Ram Shankar 將分享一些關於我們結果的評論。 Jim Rine，UMB 銀行執行長；首席信貸官 Tom Terry 也將出席問答環節。在開始之前，請允許我提醒您，今天的簡報包含前瞻性陳述，這些陳述受到假設、風險和不確定性的影響。這些風險包含在我們向 SEC 提交的文件中，並在我們簡報的第 47 張投影片中進行了總結。實際結果可能與前瞻性聲明中提出的結果有所不同，這些聲明僅代表今天的情況。除證券法要求的範圍外，我們不承擔更新它們的義務。本次電話會議討論的所有每股盈餘指標均以稀釋後的股票為基礎。我們的簡報資料和新聞稿可在 Investorrelations.umb.com 上線上取得。現在我將電話轉給 Mariner Kemper。

Thank you, Kay, and good morning. Thanks, everyone, for joining us today. Despite the exaggerated noise from the recent crisis that is largely subsided, our second quarter results reflect strong trends highlighted by strong asset quality and overall portfolio health, strong and consistent fee income that helps us navigate this elevated interest rate environment, continue to get prudent opportunities in loan growth, particularly in commercial and industrial lending, strong client engagement and traction across our diverse lines of business. These solid results in several areas were masked by higher interest expense, driven by the Federal Reserve monetary tightening actions and the resulting increases in funding costs in the interest rate environment we live with today. As noted in our last call, the deposit pricing pressures the industry is experiencing is not dissimilar to the price of commodity or raw materials for other industries. As other industries would, we are reacting to our cost of raw material by pricing our products for this environment. As we have noted, 62% of our existing loans also reprice with movements in rates. Like others in the industry, we also maintained elevated levels of excess liquidity during the second quarter. This resulted in brokered CDs and borrowing levels higher than we've typically carried, which also impacted interest expense and our margin. To help mitigate the continued impact of liability pricing, we maintain flexibility on the asset side of our balance sheet. We have a loan-to-deposit ratio on the lower side of peer averages, a largely variable asset base and strategically planned cash flows. This is not to diminish the challenges the industry faces from higher interest expense or the rotation of deposits to rate bearing options. This has had an impact on margins and spread as evident during this earnings season.

謝謝你，凱，早安。謝謝大家今天加入我們。儘管近期危機帶來的誇大噪音已基本平息，但我們第二季度的業績反映了強勁的趨勢，突顯了強勁的資產品質和整體投資組合健康狀況、強勁而穩定的費用收入，有助於我們應對利率上升的環境，繼續獲得審慎的機會在貸款成長方面，特別是在商業和工業貸款方面，強大的客戶參與度和對我們不同業務線的吸引力。在聯準會貨幣緊縮行動以及我們當今所處的利率環境中由此導致的融資成本增加的推動下，利息支出的增加掩蓋了多個領域的這些堅實成果。正如我們在上次電話會議中所指出的，該行業正在經歷的存款定價壓力與其他行業的大宗商品或原材料的價格沒有什麼不同。與其他行業一樣，我們透過針對這種環境定價我們的產品來應對原材料成本。正如我們所指出的，我們 62% 的現有貸款也會隨著利率變動而重新定價。與業內其他公司一樣，我們在第二季度也維持了較高的流動性過剩水準。這導致經紀CD和借款水平高於我們通常持有的水平，這也影響了利息支出和我們的利潤率。為了幫助減輕負債定價的持續影響，我們在資產負債表的資產方面保持彈性。我們的貸存比低於同業平均水平，資產基礎變化很大，現金流也經過策略規劃。這並不是為了減少該行業因利息支出增加或存款轉向利率選擇而面臨的挑戰。這對利潤率和利差產生了影響，這一點在本財報季節顯而易見。

On the macro front, the economy continues to be resilient with some pressures in isolated pockets and industries. It also seems that the volatile tightening cycle may be behind us. And the prevailing questions are, how long will the Fed maintain rates at these elevated levels? And do we end up with a soft land. Through the recent industry volatility, we've maintained our focus as a growth company. We reported double-digit annualized loan growth, excellent credit metrics, solid fee businesses and largely stable and diverse deposit base. As our costs increase, we remain disciplined in pricing our loans and continue our efforts to control operating expenses. UMB has a track record of sticking to the business model that has proven itself over time even as we adapt to changing circumstances. Now I'll cover a few highlights from the quarter. GAAP net income for the second quarter was $90.1 million or $1.85 per share, operating net income was $93.8 million or $1.93 per share. Net interest income decreased for the first quarter as strong loan growth and improved asset yields were offset by increased deposit costs and liability mix shifts. We have continued to benefit from asset repricing with a linked quarter beta on loan yields of nearly 70%. This is in line with the beta on the total client deposits. which excludes broker profits.

在宏觀方面，經濟持續保持彈性，但個別地區和產業仍面臨一些壓力。波動性的緊縮週期似乎已經過去。目前普遍存在的問題是，聯準會將利率維持在如此高的水平多久？我們最終會得到一塊柔軟的土地嗎？儘管最近的行業波動，我們仍然將重點放在成長型公司上。我們報告了兩位數的年化貸款成長、出色的信貸指標、穩定的收費業務以及基本穩定和多樣化的存款基礎。隨著成本的增加，我們在貸款定價方面仍然嚴格，並繼續努力控制營運費用。 UMB 有著堅持業務模式的記錄，即使我們適應不斷變化的環境，這種模式也隨著時間的推移而證明了自己。現在我將介紹本季的一些亮點。第二季 GAAP 淨利為 9,010 萬美元，即每股 1.85 美元，營運淨利為 9,380 萬美元，即每股 1.93 美元。第一季淨利息收入下降，因為強勁的貸款成長和資產收益率的提高被存款成本的增加和負債組合的變化所抵消。我們繼續受益於資產重新定價，貸款收益率的相關季度貝塔值接近 70%。這與客戶存款總額的貝塔值一致。其中不包括經紀商利潤。

Both fee income and expense levels contained a few factors that impacted linked quarter and year-over-year comparisons. As a reminder, second quarter of last year contained a $66.2 million pretax gain on the sale of our Visa B shares. Ram will provide more color on the drivers in his discussion. We posted average quarterly loan growth of 17.3% on a linked quarter annualized basis. Even as we've grown loan balances, asset quality remains strong with net recoveries of $139,000 for the quarter. Nonperforming loans were just 0.09% of loans as of June 30 and provision for credit losses was just $13 million for the quarter, driven by loan growth and macroeconomic variables. We are incredibly proud of our current and historical credit performance. If you look at our 20-year history, ending with the full year of 2022, our annual losses have averaged just 29 basis points and our 10-year average was 26 basis points. What makes it even more impressive is that over these periods, we have enhanced our reach and footprint through market and vertical expansion and are generally a more complex organization. We've achieved this through our focus on risk management and with consistent approach that comes from having the same team. Our allowance to loan coverage ratio further increased 2 basis points sequentially to 99 basis points of total loans at a level we believe to be prudent.

費用收入和支出水準都包含一些影響季度和年比比較的因素。提醒一下，去年第二季我們出售 Visa B 股票獲得了 6,620 萬美元的稅前收益。拉姆將在他的討論中提供更多有關車手的信息。我們公佈的季度平均貸款年化成長率為 17.3%。儘管我們的貸款餘額有所增加，但資產品質仍然強勁，本季淨回收額為 139,000 美元。截至 6 月 30 日，不良貸款僅佔貸款的 0.09%，受貸款成長和宏觀經濟變數的推動，本季信貸損失撥備僅為 1,300 萬美元。我們對我們當前和歷史的信用表現感到非常自豪。如果你看看我們 20 年的歷史，截至 2022 年全年，我們的年度平均損失僅為 29 個基點，而 10 年的平均損失為 26 個基點。更令人印象深刻的是，在這些時期，我們透過市場和垂直擴張擴大了我們的影響力和足跡，並且通常是一個更複雜的組織。我們透過對風險管理的關注以及來自同一團隊的一致方法實現了這一目標。我們的撥備貸款覆蓋率進一步上升 2 個基點，佔總貸款的 99 個基點，處於我們認為審慎的水平。

Criticized loans were essentially flat from the prior quarter. Our total watch list levels, including past loans, will fluctuate from quarter-to-quarter, but as evidenced by our recoveries this quarter, we continue to have very little migration to loss. The drivers behind our growth in average loan balances this quarter are on Slide 24. Nearly half the increase was driven by C&I customers, followed by construction lending and residential real estate. While customer sentiment is mixed with some uncertainty about the economy, commercial pipeline remains steady. Total top line loan production, as shown on Slide 25, was $986 million, while payoffs and paydowns represent 3.4% of loans in the first quarter. The average for the past 5 quarters was 3.6%, in line with our longer-term trend. Commercial real estate and construction growth in the second quarter came in predominantly in the multifamily and industrial categories. Credit quality is strong across our book, and the CRE portfolio is well diversified by property classification, tenant type and geography, as shown in the line of business section of this presentation on Slide 37 and 38. As we did last quarter, we've included LTVs, recourse and other statistics by property type as well as geographic detail on the portfolio. The office portfolio represents just 4.5% of total loans with only an average size of $8.5 million.

受到批評的貸款與上一季基本持平。我們的整體觀察名單水準（包括過去的貸款）將隨季度波動，但正如我們本季的復甦所證明的那樣，我們仍然很少出現虧損。本季平均貸款餘額成長的驅動因素如投影片 24 所示。近一半的成長是由工商業客戶推動的，其次是建築貸款和住宅房地產。儘管客戶情緒與經濟的一些不確定性交織在一起，但商業管道仍保持穩定。如投影片 25 所示，總頂線貸款產量為 9.86 億美元，而還款和還款佔第​​一季貸款的 3.4%。過去 5 個季度的平均值為 3.6%，與我們的長期趨勢一致。第二季商業房地產和建築業的成長主要來自多戶住宅和工業類別。我們的信用品質很高，商業房地產投資組合在財產分類、租戶類型和地理位置方面非常多樣化，如幻燈片37 和38 中本簡報的業務部分所示。正如我們上個季度所做的那樣，我們已經包括按財產類型劃分的 LTV、追索權和其他統計數據以及投資組合的地理詳細資訊。辦公室投資組合僅佔貸款總額的 4.5%，平均規模僅 850 萬美元。

Looking ahead into the third quarter, we see opportunities in our various lending verticals across our footprint. We will continue to remain disciplined on pricing, further emphasizing lending accompanied by meaningful deposit relationships. On the other side of the balance sheet, average total deposits decreased $87 million or 1.1% on an annualized basis from the first quarter to $31.5 billion. Included in the linked quarter reduction in average deposits were typical public fund fluctuations of $284 million and normal course of business activities, such as tax payments. As we point out each quarter, activity in our commercial and institutional customer base, along with seasonal public fund balance fluctuations differentiates us from peers with large retail businesses. Deposit balances will naturally ebb and flow for typical business purposes, including payroll, dividends and other activity. We have deep relationships with long-term clients who rely on UMB not only for deposits, but for multiple financial products and services to manage and grow their businesses. Our pipeline for new to bank deposit relationships also remains healthy. And while nominal, we continue to add commercial accounts despite the common industry narrative. While cost of deposit acquisition will mimic current market rates, we also benefit from cheaper sources of funding in our Corporate Trust and aviation businesses that can be lumpy from time to time. To reiterate, as I noted earlier, we've been diligent and successful in pricing our loans for the market dynamics around our funding costs. Slide 30 and 31 show the composition and other characteristics of our deposit portfolio. At the end of June, deposits stood at $33.5 billion, an increase of 5% from March 31, and uninsured deposits adjusted to exclude affiliated and the collateralized deposits were at 41% of total deposits as of June 30. Now I'll turn it over to Ram for a more detailed look at our results. Ram?

展望第三季度，我們看到了我們業務範圍內各個貸款垂直領域的機會。我們將繼續保持定價紀律，進一步強調貸款與有意義的存款關係。另一方面，平均總存款較第一季減少 8,700 萬美元，或 1.1%，至 315 億美元。相關季度平均存款減少包括 2.84 億美元的典型公共基金波動和納稅等正常業務活動。正如我們每季指出的那樣，我們的商業和機構客戶群的活動以及季節性公共基金餘額波動使我們與擁有大型零售業務的同行區分開來。出於典型的商業目的，包括工資、股息和其他活動，存款餘額自然會波動。我們與長期客戶建立了深厚的關係，他們不僅依賴 UMB 進行存款，還依賴多種金融產品和服務來管理和發展業務。我們的新銀行存款關係管道也保持健康。儘管名義上是這樣，但我們仍在繼續增加商業帳戶，儘管行業有普遍的說法。雖然存款獲取成本將模仿當前的市場利率，但我們也受益於我們的企業信託和航空業務的更便宜的資金來源，這些資金來源有時可能會波動。重申一下，正如我之前指出的，我們一直在努力並成功地圍繞融資成本根據市場動態對貸款進行定價。投影片 30 和 31 顯示了我們存款組合的組成和其他特徵。截至6月底，存款為335億美元，較3月31日增長5%，截至6月30日，調整後排除關聯和抵押存款的未保險存款佔總存款的41%。現在我把它轉過來請讓Ram 更詳細地了解我們的結果。記憶體？

Thanks, Mariner. I'll share a few additional drivers of our second quarter results, then I'll discuss some of the key balance sheet items that continue to be top of mind in the current environment. Net interest margin for the second quarter was 2.44%, a decrease of 32 basis points from the linked quarter. Drivers included negative impacts of approximately 45 basis points from deposit pricing and mix and 14 basis points related to changes in Fed funds purchase, repurchase agreements and short-term borrowing levels. Offsets included a positive 21 basis points from loan mix and repricing and 10 basis points from the benefit of free funds and changes in liquidity balances. The cost of total deposits for the quarter was 2.17%. Excluding brokered deposits that we added to enhance our liquidity levels, that cost was 1.95% compared to 1.62% in the first quarter for a linked quarter beta of 70%. As Mariner mentioned, beta alone yields kept pace with this quarterly data. We continue to benefit from the shorter tenor of our asset base, including the fact that 69% of our loan portfolio reprices within 12 months. Cycle to date, we've seen betas and loans and total earning assets of 56% and 50%, respectively. Similarly, the beta on total funding costs, which consider the benefit of DDA and the impact of borrowing levels has been 50%, while the cost of total deposits has experienced a 43% beta cycle to date. Our outlook for net interest income going forward will be impacted by a variety of factors, including the shape of the yield curve, anticipated fed hikes along with the timing of those hikes, the length of the Fed pause, timing of rotation out of wholesale funding sources and the replacement costs and potential for any additional disintermediation of DDAs to rate-bearing categories and continued competition from deposit alternatives.

謝謝，水手。我將分享第二季業績的一些其他驅動因素，然後我將討論在當前環境下仍然是首要考慮的一些關鍵資產負債表項目。第二季淨利差為2.44%，較上季下降32個基點。驅動因素包括存款定價和組合帶來的約 45 個基點的負面影響，以及與聯邦基金購買、回購協議和短期借款水準變化相關的 14 個基點的負面影響。抵銷包括貸款組合和重新定價帶來的 21 個基點的正向抵消，以及自由資金和流動性餘額變化帶來的 10 個基點的正向抵消。該季度總存款成本為2.17%。不包括我們為提高流動性水準而增加的經紀存款，該成本為 1.95%，而第一季的成本為 1.62%，關聯季度貝塔值為 70%。正如 Mariner 所提到的，僅 Beta 收益率就與本季數據保持同步。我們繼續受益於資產基礎期限較短，包括我們 69% 的貸款組合在 12 個月內重新定價。到目前為止，我們看到貝塔係數、貸款和總獲利資產分別為 56% 和 50%。同樣，考慮到 DDA 的收益和借款水平的影響，總融資成本的貝塔值為 50%，而總存款成本迄今為止經歷了 43% 的貝塔週期。我們對未來淨利息收入的展望將受到多種因素的影響，包括殖利率曲線的形狀、預期的聯準會升息以及升息的時間、聯準會暫停的時間長度、批發資金輪換的時間來源、替代成本以及DDA 與利率類別的任何額外脫媒的可能性以及來自存款替代品的持續競爭。

Our DDAs averaged 33% of total deposits, down from 38% in the first quarter, driven both by increase in interest-bearing deposits and decline in DDA balances. The current percentage of DDA to total deposit mimics the low point during the 2015 to 2017 tightening cycle. While we do not anticipate any material changes to these levels, the migration can be episodic and varies from quarter-to-quarter due to the nature of some of our business lines. A July rate hike seems to be priced in. Looking ahead to the second half of the year, we would expect a terminal beta of 50% for total deposits and 60% for loans through the end of the cycle. We would expect some additional modest margin compression in the third quarter, driven by the timing of the July rate hike. Our reported noninterest income of $138.1 million contains some market-related variances, including a $1.3 million decrease in customer-related derivative income and a $902,000 decrease in company-owned life insurance income. The $6.2 million linked quarter increase in net investment security gains relates to the impairment of the sub debt security last quarter, along with the increased valuation of equity investments this quarter. Additionally, we recognized a gain of $4 million on the sale of some noncore assets in the second quarter. The detailed drivers of our $241 million in noninterest expense are shown in our slides and press release. A few items of note. We recorded $7.4 million in additional salary and bonus expense, largely driven by a $4.9 million severance expense in the quarter and higher salaries related to annual merit increases that were effective in the second quarter. These increases in salary and benefits line were partially offset by seasonal decreases in payroll taxes and insurance and lower 401(k) accruals. Excluding $3.2 million of deferred compensation and the $4.9 million of severance costs as well as other typical timing variances, we would put our quarterly starting point expense run rate closer to $230 million. Our effective tax rate was 18.1% for the second quarter compared to 20.8% in the second quarter of 2022. The decreased rate was driven primarily by a larger portion of income on tax-exempt securities. For the full year 2023, we anticipate that the tax rate will be approximately 17% to 19%.

由於計息存款增加和 DDA 餘額下降，我們的 DDA 平均佔總存款的 33%，低於第一季的 38%。目前 DDA 佔存款總額的百分比模仿了 2015 年至 2017 年緊縮週期期間的低點。雖然我們預計這些水平不會發生任何重大變化，但由於我們某些業務線的性質，遷移可能是間歇性的，並且每個季度都有所不同。 7 月的升息似乎已被定價。展望今年下半年，我們預計在整個週期結束時，總存款的終期貝塔值為 50%，貸款的終期貝塔值為 60%。我們預計，受 7 月升息時機的推動，第三季利潤率將進一步小幅壓縮。我們報告的非利息收入為 1.381 億美元，其中包含一些與市場相關的差異，包括與客戶相關的衍生性商品收入減少 130 萬美元，公司自有人壽保險收入減少 902,000 美元。淨投資證券收益季度季增 620 萬美元，與上季次級債務證券減損以及本季股權投資估值上升有關。此外，我們也確認第二季出售一些非核心資產帶來了 400 萬美元的收益。我們的幻燈片和新聞稿中顯示了 2.41 億美元非利息支出的詳細驅動因素。一些值得注意的事項。我們記錄了 740 萬美元的額外工資和獎金費用，主要是由於本季度 490 萬美元的遣散費以及與第二季度生效的年度績效增長相關的更高工資。工資和福利額度的增加部分被工資稅和保險的季節性減少以及 401(k) 應計費用的減少所抵消。不包括 320 萬美元的遞延薪資和 490 萬美元的遣散費以及其他典型的時間差異，我們的季度起始費用運行率接近 2.3 億美元。我們第二季的有效稅率為 18.1%，而 2022 年第二季為 20.8%。稅率下降的主要原因是免稅證券收入佔比較大。 2023年全年，我們預計稅率約為17%至19%。

Now turning to more detail on the balance sheet. I'll start with our investment securities portfolio shown on Slides 28 and 29. Our average investment securities balances remained relatively flat from the first quarter at $11.4 billion, excluding the $1.2 billion of industrial revenue bonds in the held-to-maturity category. During the quarter, $243 million of securities with an average yield of 2.07% rolled off. The yield on our total AFS portfolio increased to 2.70% and the HTM portfolio, excluding the IRB that I mentioned, had an average yield of 2.33% for the second quarter. The portfolio is split roughly 60-40 between available for sale and held to maturity, and the AFS book has a duration of test under 4 years. Additionally, the portfolio is expected to generate more than $1.6 billion of cash flows in the next 12 months, providing further funding flexibility and opportunity to deploy an asset that have more attractive yields. The rollout of these securities, which have a blended rate of 2.16% will also improve our AOCI position over that period. As of June 30, the unrealized pretax loss on the AFS portfolio was $766 million or 10.3% of the amortized cost. For the HTM portfolio, this loss was $576 million, including the IRBs.

現在轉向資產負債表的更多細節。我將從投影片28 和29 中顯示的投資證券投資組合開始。我們的平均投資證券餘額與第一季相比保持相對平穩，為114 億美元，不包括持有至到期類別的12 億美元工業收入債券。本季度，共出售了 2.43 億美元的證券，平均收益率為 2.07%。我們整個 AFS 投資組合的收益率增加至 2.70%，HTM 投資組合（不包括我提到的 IRB）第二季的平均收益率為 2.33%。此投資組合大約分為 60-40 個可供出售和持有至到期的部分，AFS 帳簿的測試期限低於 4 年。此外，該投資組合預計將在未來 12 個月內產生超過 16 億美元的現金流，提供進一步的融資靈活性和部署收益率更具吸引力的資產的機會。這些混合利率為 2.16% 的證券的推出也將改善我們在此期間的 AOCI 地位。截至 6 月 30 日，AFS 投資組合的未實現稅前虧損為 7.66 億美元，佔攤餘成本的 10.3%。對於 HTM 投資組合來說，包括 IRB 在內，這一損失為 5.76 億美元。

Slide 33 highlights our liquidity position, along with the contingent sources of funding available to meet customer and operational needs. As of June 30, we had $16 billion in available liquidity sources. Liquidity coverage of adjusted uninsured deposits increased to 117% at quarter end. Additionally, if needed, we have some further capacity to add broker deposits, which could boost the coverage ratio to 129% of adjusted uninsured deposits. Also on that slide, we've included our regulatory capital ratios for June 30. Our CET1 ratio improved to 10.65% and compares favorably to the peer median. Tangible book value per share was $52.54, an increase of 3.8% compared to the same period a year ago. Since 2018, we've experienced a 5.6% annualized growth rate in tangible book value per share. Our tangible common equity ratio was 6.22% at June 30, improving to 7.90% when excluding the impact of AOCI. We believe our strong capital and liquidity levels provide the flexibility to support our customers, grow our business and deliver returns for our shareholders while giving us the ability to address uncertainty in the industry as well as any upcoming regulatory changes. That concludes our prepared remarks, and I'll now turn it over back to the operator to begin the Q&A portion of the call.

投影片 33 強調了我們的流動性狀況，以及可用於滿足客戶和營運需求的或有資金來源。截至 6 月 30 日，我們擁有 160 億美元的可用流動性來源。季末調整後未保險存款的流動性覆蓋率增加至 117%。此外，如果需要，我們還有更多能力增加經紀人存款，這可以將調整後未投保存款的覆蓋率提高到 129%。在那張投影片上，我們也納入了 6 月 30 日的監管資本比率。我們的 CET1 比率提高至 10.65%，與同業中位數相比毫不遜色。每股有形帳面價值為52.54美元，較去年同期成長3.8%。自 2018 年以來，我們的每股有形帳面價值實現了 5.6% 的年化成長率。截至 6 月 30 日，我們的有形普通股比率為 6.22%，排除 AOCI 的影響後，該比率升至 7.90%。我們相信，我們強大的資本和流動性水平可以靈活地支持我們的客戶、發展我們的業務並為股東帶來回報，同時使我們有能力應對行業的不確定性以及任何即將到來的監管變化。我們準備好的發言就到此結束，現在我將其轉回接線生以開始通話的問答部分。

Operator Instructions)  And our first question comes from Chris McGratty from KBW.

操作員說明）我們的第一個問題來自 KBW 的 Chris McGratty。

Ram, maybe starting with the top line. And you talked about a little bit more fresh on the margin. How should we think about just the level of NII? It feels like we're -- the trough was near given Mariner's growth comments, but interested in comments of where you see the cadence of NII going over the back half of the year...

拉姆，也許從頂線開始。你談到了一些更新鮮的邊緣問題。我們該如何看待 NII 的水平？考慮到 Mariner 的成長評論，感覺我們已經接近低谷了，但對你看到的 NII 在今年下半年的節奏的評論感興趣...

 I'll take that, Chris, Mariner. And if Ram has something to add, you can. We've said in the previous comments, mid-single-digits growth -- and I think that's probably still reasonable. A lot of things, a lot of variables, both headwinds and tailwinds to shake out for the rest of the year. But for what we can see right now that, that holds true with maybe some -- the headwinds remain, right? They're persistent, to see how they play out, but it's a fair start in place.

——我接受，克里斯，水手。如果拉姆有什麼要補充的，你可以。我們在之前的評論中說過，中等個位數的成長——我認為這可能仍然是合理的。今年剩下的時間裡，有很多事情、很多變數，既有逆風也有順風。但就我們現在所看到的情況來說，這可能對某些人來說是正確的——逆風仍然存在，對嗎？他們很堅持，想看看結果如何，但這是一個公平的開始。

 The -- just so I'm clear, the -- that mid-single digit is full year net interest income growth compared to 2022, right?

——我很清楚，中個位數是與 2022 年相比全年淨利息收入成長，對嗎？

Correct year-over-year year-over-year... Last year's basis about $13 million. Yes. Again, a lot of -- as Mariner said, a lot of moving parts, some of which I highlighted, right, when the Fed is done, how long they keep it and what might happen with DDAs, some big deals that come our way from our pipeline and things like that.

年比正確...去年的基礎約為 1,300 萬美元。是的。再說一次，正如馬裡納所說，很多變動的部分，其中一些我強調了，對吧，美聯儲何時完成，他們保留多長時間以及 DDA 可能會發生什麼，我們即將發生的一些大交易來自我們的管道和類似的東西。

Yes. I mean there's -- as you know, because of the institutional corporate, it's pretty lumpy. We can have a big corporate trust deal come in just as easily as we can have tax payments go out. I mean, it's hard to tell exactly what happens from one quarter to the next.

是的。我的意思是——如你所知，由於機構性公司的原因，它相當不穩定。我們可以輕鬆地達成一項大型企業信託交易，就像我們可以輕鬆地繳稅一樣。我的意思是，很難確切地說出從一個季度到下一個季度會發生什麼。

Okay. But that would seemingly imply that the step down from Q1 to Q2 would reverse and you have growth off of these levels my math, right? That's kind of what you're messaging?

好的。但這似乎意味著從第一季到第二季的下降趨勢將會逆轉，並且您的成長將超出我的數學水平，對嗎？這就是你發的消息？

Again, a lot of moving parts, but to Mariner's earlier point about that mid-single, right? A lot of these things need to come together for that to happen, but I'm not ready to call a bottom out on NII, but at the same time, I'm not saying it's going to be much lower than where we are. The loan growth is going to be certainly a driver of net interest income... What happens... Yes, borrowing... Yes. And with the step down from 1Q to 2Q, as we highlighted, was a lot of the excess liquidity that we carry, the brokered CDs that we issued in response to some of the things going on in March.

再說一次，有很多移動的部分，但對於 Mariner 之前關於中單曲的觀點，對吧？要實現這一目標，需要將很多事情結合起來，但我還沒有準備好宣布 NII 觸底，但同時，我並不是說它會比我們現在的水平低得多。貸款成長肯定會成為淨利息收入的驅動力……會發生什麼事……是的，借貸……是的。正如我們所強調的，隨著從第一季到第二季的下降，我們持有大量過剩的流動性，我們為應對 3 月發生的一些事情而發行了經紀 CD。

And those are coming down, right, as we go into the back half of the year. So...

當我們進入今年下半年時，這些都會下降，對吧。所以...

Maybe just one more on your capital. Your balance sheet is in great shape from a capital perspective. to the 1 million share in the release lastly for the buyback. Any updated thoughts on capital return given the market seems to settle a bit?

也許你的資本又多了一個。從資本角度來看，您的資產負債表狀況良好。最後發行的100萬股用於回購。鑑於市場似乎有所穩定，對資本回報有何最新想法？

Well, I mean, the share repurchase approval is to give us that flexibility. We obviously don't have any plans to do that, but we want to have that flexibility as we watch the stock price in the market and our company performed in the back half of the year. I'm not sure how to...

嗯，我的意思是，股票回購批准是為了給我們帶來靈活性。我們顯然沒有任何計劃這樣做，但我們希望在觀察市場股價和公司下半年表現時擁有這種靈活性。我不知道如何...

Yes. What we did yesterday was the annual cadence that we have for the Board to approve some share repurchase authorization. Typically, we've done it in April for 2 million shares and this time around out of prudence. And just given the circumstances in the environment we all find ourselves in, we just asked the board to approve a million share authorization. At this point, I would say, probably not a lot of appetite to do that because we still see loan growth opportunity. Like we said, our capital stack is largely going to be used helpful loan growth.

是的。我們昨天所做的是董事會每年批准一些股票回購授權的節奏。通常情況下，我們在 4 月購買了 200 萬股，這次是出於謹慎。考慮到我們所處的環境，我們只是要求董事會批准一百萬股的授權。在這一點上，我想說，可能沒有太多興趣這樣做，因為我們仍然看到貸款成長機會。正如我們所說，我們的資本結構主要將用於幫助貸款成長。

 That's why the main answer is loan growth. That's where the capital is going.Â

這就是為什麼主要答案是貸款成長。這就是首都的去向。”

(Operator Instructions) and the next question comes from Nathan Race from Piper Sindler.

（操作員說明）下一個問題來自 Piper Sindler 的 Nathan Race。

Great. Thank you... I hope everyone is doing well. Question just in terms of what you guys are seeing from a deposit pricing perspective outside of the portion of the plumbing base that's indexed to short-term rates. We've heard from some banks that deposit pricing pressures have slowed to some degree more recently. Curious if you guys are seeing that and to what extent you guys are maybe be more competitive on some rates into the second quarter.

偉大的。謝謝...我希望每個人都一切順利。問題只是從存款定價的角度來看，除了與短期利率掛鉤的管道基礎部分之外，你們所看到的是什麼。我們從一些銀行獲悉，存款定價壓力最近有所放緩。很好奇你們是否看到了這一點，以及你們在第二季度的某些費率上可能會在多大程度上更具競爭力。

Well, it's hard really to predict a lot of that. I think from my vantage point, I think we are coming to the back end. A lot of that has to do with what the Fed's yet to do, still to do. I think from our -- we believe that we went through most of this cycle early, right, having more of a commercial and institutional deposit base. So if what the Fed is doing is leveling off, which seems to be with an announcement of another 25 today, maybe another 50 -- another 25 to 50 in total, right. That -- the level of increases to the deposit rates for us should be leveling out. We've taken most of that pain, I believe. So that doesn't mean they're not going to go up slightly, but I think that the rate of increase is definitely coming off.

嗯，確實很難預測其中的許多內容。我認為從我的角度來看，我認為我們正在走向後端。這在很大程度上與聯準會尚未採取的行動有關。我認為，從我們的角度來看，我們相信我們很早就經歷了這個週期的大部分時間，對吧，擁有更多的商業和機構存款基礎。因此，如果聯準會正在採取的措施是趨於平穩，今天似乎又宣布了 25 次，也許還有 50 次——總共還有 25 到 50 次，對吧。我們的存款利率上漲水準應該趨於平穩。我相信我們已經承受了大部分的痛苦。因此，這並不意味著它們不會略有上升，但我認為成長率肯定會下降。

Okay. Great. And then maybe just one longer-term question on the margin... Sorry.

好的。偉大的。然後也許只是一個邊緣的長期問題......抱歉。

I was just going to add -- and when it does level off and the positive increase rates level off, we should still see the increases on the loan side.

我只是想補充一點——當它確實趨於平穩並且正增長率趨於平穩時，我們仍然應該看到貸款方面的增長。

Yes, that kind of answers my second question, Mariner, in terms of in a theoretical higher for longer interest rate environment. I imagine we should see some pretty substantial margin expansion just given the lagging repricing impact on loans and with those short-term deposits -- I'm sorry, those short-term index deposit repricing slowing. Is that a fair way to kind of think about the cadence of the margin and then type of rate environment?

是的，這在某種程度上回答了我的第二個問題，Mariner，在理論上較高的長期利率環境中。我想我們應該會看到一些相當大的利潤率擴張，只是考慮到貸款和短期存款的重新定價影響滯後——對不起，這些短期指數存款重新定價正在放緩。這是考慮保證金節奏和利率環境類型的公平方式嗎？

Directionally, yes. Yes, for sure.

從方向上來說，是的。是肯定的。

Okay. And I understand -- I appreciate that you guys don't pay much attention to enact balances versus average, but end of period deposit growth was fairly pronounced in the quarter. And just curious how you guys are thinking about the pipeline for deposit growth. And it sounds like the loan growth pipeline remains pretty solid. But should we kind of expect deposit growth to lag loan growth going forward? And I think some of the margin or NII lift that you guys are speaking to for this year should be a function of just some of the remix and maybe less deposit growth relative to loan growth going forward or at least over the next couple of quarters, does that make sense?

好的。我理解——我明白你們不太關注實際餘額與平均水平的關係，但本季期末存款成長相當明顯。只是好奇你們如何考慮存款成長的管道。聽起來貸款成長通路仍然相當穩固。但我們是否應該預期存款成長將落後於貸款成長？我認為你們今年談論的一些利潤率或NII提升應該只是一些重組的函數，並且可能是相對於未來或至少在接下來的幾個季度的貸款增長而言存款增長的減少，那有意義嗎？

Yes. I mean I think the way to think about it is in this environment with an inverted yield curve and the attractiveness of money market funds, off-balance sheet funds in this environment, -- it is more challenging, right, to grow your deposits at the rate that we were before the inverted yield curve. So we always have the brokered CDs, and we can always do campaign money to keep up with loan growth in the short period before the rate cycle normalizes. And when that happens, we should be able to pick up the deposit rate of growth again. But I think from the standpoint of UMB, it's important to note that we come into the cycle with a very low loan-to-deposit ratio. So we have a lot of room to run with loan growth without feeling like we are stressing our balance sheet. So we're sitting at what 70-ish loan deposit rate... 100% on... 70. So we have room to run there during this rate cycle that we're in to protect us there to wait for the environment to change and normalized deposit growth. I don't know if you'd add anything to that.

是的。我的意思是，我認為考慮這個問題的方法是在這種殖利率曲線倒掛的環境下，以及貨幣市場基金、表外基金在這種環境下的吸引力，——在這種環境下增加你的存款更具挑戰性，對吧。收益率曲線倒掛之前的利率。因此，我們總是擁有經紀CD，並且我們總是可以在利率週期正常化之前的短期內進行競選資金以跟上貸款成長。當這種情況發生時，我們應該能夠再次提高存款率的成長率。但我認為，從 UMB 的角度來看，重要的是要注意我們進入週期時貸存比非常低。因此，我們有很大的貸款成長空間，而不會感覺到我們的資產負債表受到壓力。因此，我們正處於 70 左右的貸款存款利率……100％……70。因此，在這個利率週期中，我們有空間運行，以保護我們等待環境的變化。變化和存款增長正常化。我不知道你是否願意添加任何內容。

The prepared comments that we said about -- on the institutional side, particularly, we have a active deposit pipeline that we're pursuing. So to your question, yes, it's a difficult deposit environment. But unlike most peers, we have a lot of different sources of funding that's available to us that Mariner walked us through. So I would go back to what we said in our prepared comments.

我們所說的準備好的評論——特別是在機構方面，我們正在尋求一條活躍的存款管道。所以對於你的問題，是的，這是一個困難的存款環境。但與大多數同行不同的是，我們有許多不同的資金來源可供使用，馬裡納向我們介紹了這些資金來源。所以我想回到我們在準備好的評論中所說的話。

Yes, I think I was reacting to a specific question about keeping up with the same rate. Our deposit growth will not keep up with the same rate. Will not grow at the same rate of our loans and we're protected by our loan-to-deposit ratio with that. We definitely expect our deposits to grow. And I think that, to Ram's point about the nuance of all our institutional businesses, from 1 month or 1 quarter to the next, we can have an $800 million, $900 million corporate trust piece of business come in and sit on our balance sheet for 6 or 9 months, just as easily as we can have a tax pay that go out on the other end. So it's -- that's why we focus on the average instead of the point in time.

是的，我想我正在回答一個關於保持相同速率的具體問題。我們的存款成長將無法跟上相同的速度。不會以與我們的貸款相同的速度成長，我們受到貸存比的保護。我們肯定預期我們的存款會成長。我認為，按照拉姆關於我們所有機構業務的細微差別的觀點，從1 個月或1 個季度到下一個季度，我們可以有8 億美元、9 億美元的企業信託業務進入並留在我們的資產負債表上6或9個月，就像我們可以輕鬆地將稅款從另一端出去一樣。這就是為什麼我們關注平均值而不是時間點。

Got you. Okay. One last one for me, just in terms of what you're seeing from a lending competition perspective, I imagine some of the consistency in your pipeline is a function of maybe competitors pulling back that are maybe more liquidity constraints as you guys, but would just be curious to kind of hear where you guys are seeing tick growth and what's going on competitively that's also kind of supporting the strong pipeline coming out of the second quarter?

明白你了。好的。對我來說最後一個，就你從貸款競爭的角度看到的情況而言，我想你的管道中的一些一致性可能是競爭對手撤回的函數，這可能與你們一樣受到更多的流動性限制，但會只是好奇地想聽聽你們在哪裡看到了蜱蟲的增長，以及競爭情況如何，這也支持了第二季度的強勁管道？

Yes. This is Jim Ryan. We're seeing plenty of opportunity still and rates remain competitive as they ever happened. We have seen competitors pulling back. I think it's a common theme right now as it relates to banks are looking for full relationships more than transactional lending. And if it doesn't come, if the opportunity doesn't come with additional funding, folks are taking a much stronger look at whether or not they want to take on a particular large opportunity like CRE, for instance, or even participation. So especially in the syndication banks without additional fee income or additional deposits are definitely pulling away from those. Regarding pricing, banks are still looking for loans and the good credits are still able to command a decent rate.

是的。這是吉姆·瑞恩。我們仍然看到大量的機會，而且價格仍然像以前一樣具有競爭力。我們看到競爭對手紛紛撤退。我認為這是現在的一個共同主題，因為它與銀行尋求全面的關係而不是交易貸款有關。如果它沒有到來，如果機會沒有帶來額外的資金，人們就會更仔細地考慮他們是否願意接受像商業房地產這樣的特殊大機會，甚至參與。因此，特別是在沒有額外費用收入或額外存款的銀團銀行中，肯定會遠離這些。在定價方面，銀行仍在尋找貸款，良好的信用仍然能夠獲得不錯的利率。

Marginally, we're seeing more rate on everything, though, obviously, with the -- which is why our betas are doing so well. We expect, as we've been doing in the past, we tell you what the next quarter looks like pipeline-wise. And this quarter's coming quarters, pipeline looks just as good as last quarter.Â

邊際上，我們看到所有東西的價格都更高，但顯然，這就是我們的測試版表現如此出色的原因。正如我們過去所做的那樣，我們預計會告訴您下一季度的管道情況。本季度的未來幾個季度，管道看起來與上個季度一樣好。

We have no further questions at this time. So I'll hand the call back to the management team for any concluding remarks.

目前我們沒有進一步的問題。因此，我會將電話轉交給管理團隊，以徵求任何結論性意見。

Thank you, everyone, for joining us today. And as usual, if you have any further questions, you can reach us at (816) 6 7106. Thanks, and have a great day.

謝謝大家今天加入我們。像往常一樣，如果您有任何其他問題，請致電 (816) 6 7106 與我們聯繫。謝謝，祝您有美好的一天。

This concludes today's call, and thank you very much for your attendance. You may now disconnect your lines.

今天的電話會議到此結束，非常感謝您的出席。現在您可以斷開線路。