UMB Financial Corporation (NASDAQ:UMBF) Q1 2023 Earnings Conference Call April 26, 2023 9:30 AM ET

Company Participants

Kay Gregory – Investor Relations

Mariner Kemper – President and Chief Executive Officer

Ram Shankar – Chief Financial Officer

Jim Rine – Chief Executive Officer-UMB Bank

Tom Terry – Chief Credit Officer

Conference Call Participants

Jared Shaw – Wells Fargo

Chris McGratty – KBW

Nathan Race – Piper Sandler

Operator

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

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

Kay Gregory

Good morning, and welcome to our first 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 any 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.

Mariner Kemper

Thank you, Kay, and good morning. Thanks everybody for joining us today. 2023 is certainly shaping up to be an interesting year. We've all had a front row seat to the recent volatility across the industry, sparked by the failure of SVB and exacerbated by a few market participants in the media. While the events of the past several weeks that put banks in the spotlight may not have been anticipated, trends in the latter part of 2022 and early 2023 have pointed to coming challenges. We expected that continuing inflation changes in the yield curve, the outflows of excess liquidity built up during the pandemic and the resulting deposit beta acceleration in response to the FOMC raising an unprecedented 9x in the last 12 months would likely present some inherent, but manageable risks to the industry. By design this would also lead to eventual curtailment of credit and the slowing of the economy.