Ladies and gentlemen, thank you for standing by and welcome to the UMB Financial Corporation First Quarter Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will be given at that time. (Operator instructions) And now, I would turn the conference over to Ms. Begonya Klumb. Please go ahead, ma'am.

Good morning, everyone, and thank you for joining us for our conference call and webcast regarding our 2008 first quarter financial results. Before we begin, let me remind you that our comments in this conference call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements rely on a number of assumptions concerning future events and are subject to risks and uncertainties, which could cause actual results to differ materially from those indicated in our statements made during this call. While management of UMB believes our assumptions are reasonable, UMB cautions that material changes in interest rate, the equity markets, general economic conditions as they relate to the company's loan and fee-based customers, competition in the financial services industry, the ability to integrate acquisitions and other risks and uncertainties, which are detailed in our filings with the Securities and Exchange Commission, may cause actual results to differ materially from those discussed in this call. UMB has no duty to update such statements and undertakes no obligation to update or supplement forward-looking statements that become untrue because of new information, future events or otherwise. By now, we hope most of you on the call or listening to the webcast have had a chance to review our earnings release dated April 22. If not, you will find it on our web site at umb.com. Our earnings release includes both our GAAP-based income statement and a reconciliation to the non-GAAP measures discussed in the release, which includes certain pre-tax adjustments to non-interest income and non-interest expense, the tax effect of those adjustments and adjusted net income. These adjustments comprise a gain on the mandatory redemption of Visa shares and the reversal of liability accrual related to Visa's covered litigation provision. The reconciliation for these items can also be found on our web site at umb.com. The non-GAAP results are a supplement to the financial statements based upon Generally Accepted Accounting Principles. UMB believes this non-GAAP presentation and the elimination of these items is useful in order to focus on what we deem to be amore reliable indicator of ongoing operating performance. On the call today are Mariner Kemper, Chairman and Chief Executive Officer; Peter deSilva, President and Chief Operating Officer; and Mike Hagedorn, our Chief Financial Officer. The agenda for today's call is as follows: First, Mariner will highlight our results and strategies. Then Mike will review the details of our first quarter results. Peter will follow with a discussion of operating performance against our strategies. Following that, we will be happy to answer to your questions. Now, I will turn the call over to Mariner Kemper.

Thank you, Begonya. Welcome everyone and thank you for joining us today. Following a record year in 2007, UMB continued to deliver strong growth and record net income in the first quarter of 2008. With or without the impact of Visa's initial public offering, net income totaled $32.4 million or $0.78 per diluted share, an 86.8% increase from the $17.3 million or $0.41 per diluted share for the first quarter of '07. These results reflect the impact of the $8.9 million gain on the mandatory redemption of Visa's shares to the Visa IPO, as well as the reversal of the Visa covered litigation provision of $4 million. Excluding these transactions, UMB reported record net income of $24.1 million or diluted EPS of $0.58, a growth of 39.1% over the first quarter of 2007. This strong financial performance was driven by record revenue, non-interest income and loan balances, together with modest expense growth. As always, we have never wavered from our high credit quality standards while achieving these results. These times of unprecedented pressure in the financial services industry have validated our time-tested model based on prudent risk profile and uncompromised underwriting standards. In addition to our solid foundation, we believe our performance is also evidence that our growth strategies are working. With disciplined execution, our associates are translating those strategies into improved performance and returns. As a reminder, our first strategy is to focus on yield enhancement and we are continuing to make progress optimizing the mix of our earnings assets and liabilities. During the first quarter of 2008, end of period loans increased 5.7% over the same period in 2007, representing the 19th consecutive quarter of year-over-year loan growth. We ended the quarter with $4.1 billion in loan balances, which reflect continued growth in commercial, credit card and home…

Thanks, Mariner, and good morning to everyone. As Mariner indicated, we reported record quarterly earnings of $32.4 million or $0.78 per diluted share for the first quarter, up 86.8% from $17.3 million or $0.41 per share in the same period last year. Excluding the Visa related transactions, we recorded net income of $24.1 million or $0.58 per diluted share, up 39.1% from the same period last year. A key driver of our net income was our ability to effectively manage our funding costs. Net interest income for the quarter increased $7.4 million or 13% over the same period in 2007. As rates fell, our interest income declined 1.5%. However, this decline was more than offset by an 18.8% decrease in our total interest expense, leading to the 13% increase in our net interest income. Net interest margin increased 18 basis points to 3.50% from 3.32% in the first quarter of 2007. This improvement was primarily due to the lower cost of interest-bearing liabilities. In the first quarter of 2008, the cost of interest-bearing liabilities decreased to 2.67% compared to the 3.56% for the first quarter of 2007, a decline of 89 basis points. This offsets the 46 basis point decrease in average earning asset yields. Due to the declining rate environment, free fund contribution declined to 67 basis points from 92 basis points in the first quarter of 2007. On a sequential basis, although net interest income increased $3.5 million or 5.8%, net interest margin decreased 5 basis points compared to the fourth quarter of 2007. The linked quarter margin contraction was primarily due to the increased size of the balance sheet, as average earning assets increased $615.7 million from the fourth quarter of 2007. This was mainly related to the expected seasonality of the public fund business. By the…

Thank you, Mike, and good morning everyone. I'd like to spend the next few minutes providing some additional details on our growth and operational strategies, starting with our strategy to grow our fee businesses. One of our company's greatest strengths during this time of economic uncertainty is our ability to continue to drive improvement in our fee-based businesses. This is reflected by our non-interest income growth of 12.9% excluding the Visa-related gains. We continue to add to our strong position in Healthcare Services. Specifically, we are focused on the administration, custody and debit card processing for HSA and FSA products. We are committed to maintaining our strong position by continuing to acquire new HSA and FSA savings and investment accounts and the associated debit cards and related transactions. The number of accounts grew 58.8% in the first quarter, with deposits and assets increasing 48.9% when compared with the same period last year. At the end of the quarter, we had in excess of 814,000 HSA and FSA accounts and nearly $122 million in deposits and investment assets. We are pleased with the continuing growth that we are experiencing. Rolling our credit card business is another key part of our fee business strategy. This strategy is essential as consumer behavior continues to shift away from checks and currency to card-based transactions. A key element of this effort is to grow our commercial credit card program. Cardholder volume increased 18.8% over the same period last year. Commercial cardholder volume posted another record month in March of 2008 with total volume of nearly $52 million. The growth in purchase volume also extends to our consumer and private label customer segments. As a result, our total cardholder volume increased by 21.7% to $271 million in the first quarter of 2008 compared to $222 million…

Thank you, Peter. As I commented earlier, this quarter was a record quarter on its own merit. Many in the industry posted improved earnings, largely or solely due to the Visa transaction. This is not the case with UMB. Over the past 95 years, we have built a bank that is safe, strong and stable during all types of economic times. Our ability to whether the current storm during this time of unprecedented pressure in the financial services industry has validated our time-tested business model based on uncompromised underwriting standards and our philosophy of taking risks based on relationships. While many of our competitors are experiencing loan losses and retrenching in their approach to credit extensions, we have capital and liquidity. This advantage provides us with opportunities to generate more loans and to service our customers' needs better. As always, our customers know they can count on more from UMB. Thank you for being with us on the call today and I will turn it back over to the conference call operator to open the session for your questions. Thanks again.

Thank you. (Operator instructions) Your first question comes from the line of Peyton Green from FTN Midwest. Please go ahead.

Yes, good morning. I was wondering if you could comment a little bit – you mentioned that you would suffer from the repricing of investment securities going forward, but to what degree would you operate with a smaller portfolio rather than reinvesting in shorter lower-yielding bonds? FTN Midwest: Yes, good morning. I was wondering if you could comment a little bit – you mentioned that you would suffer from the repricing of investment securities going forward, but to what degree would you operate with a smaller portfolio rather than reinvesting in shorter lower-yielding bonds?

Good morning, Peyton; it's Mike. As we mentioned earlier, over the next 12 months, this rollout yields [ph] 448. We obviously expect to reinvest those at lower yields and some slight reduction in the duration of the portfolio is something that we're currently looking at.

Okay. All right, great. And then – FTN Midwest: Okay. All right, great. And then –

Second part of your question is, would we replace them I assume with loans otherwise, right?

Yes. FTN Midwest: Yes.

And of course, we are looking for good quality loans all the time and to the extent that that eats its way into the size of the investment portfolio either way, we are happy, so –.

Okay. And then in terms of the loan growth, you had very strong commercial loan growth. Was there any particular sector that contributed to it this quarter that might not have been apparent over the past couple? FTN Midwest: Okay. And then in terms of the loan growth, you had very strong commercial loan growth. Was there any particular sector that contributed to it this quarter that might not have been apparent over the past couple?

Peyton, it's interesting – we are particularly pleased. It's actually come across our entire footprint in all of our markets. I would – I somewhat attribute it to, my best guess here that while our competitors are retrenched in and looking internally, we're out – we have been able to – our sales force has been able to be out on the street and shaking trees and developing new relationships. So, it's just across the board, its new business alongside extensions from current customers.

Peyton, I'd also comment – it's Peter – that we haven't – we are not in Arizona in a big way; we are not in Vegas; we are not in California or Florida, some of the places that have been particularly hard hit. But, we are in the heart of the country right now where agriculture and energy are doing particularly well and the economies in the cities we generally do business in are not being hurt quite as significantly as some of the other parts of the country.

Okay, great. And then on the deposit side, you also saw [ph] pretty good deposit growth. Anything in particular going on there or is it just more of what you saw on the loan side, just better selling? FTN Midwest: Okay, great. And then on the deposit side, you also saw [ph] pretty good deposit growth. Anything in particular going on there or is it just more of what you saw on the loan side, just better selling?

I think we're selling and I think, also at the institutional level and some of the larger depositors, there is a slighter [ph] quality and there is – lot of the mutual funds are going to cash and there is a – it seems to be a sense of insensitivity to interest rates right now as rates has been dropping.

Okay, great. All right. Thank you very much. FTN Midwest: Okay, great. All right. Thank you very much.

Thanks, Peyton.

Thank you. (Operator instructions) We have no further questions at this time. Please continue.

Thank you very much for your interest in UMB. The call can be accessed via replay at our web site beginning in about two hours and it will run through May 1. And as always, you can contact me at UMB Investor Relations with any follow-up questions by calling 816-860-7906. Again, we appreciate your interest and time.

Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.