Good morning, ladies and gentlemen, thank you for standing by. Welcome to the UMB Financial Corporation second quarter conference call. During today’s presentation all parties will be in a listen-only mode. Following the presentation the conference will be opened for questions. (Operator instructions) As a reminder, this conference is being recorded today, July 23rd, 2008. I would now like to turn the conference over to Begonya Klumb, Director of Investor Relations. Please go ahead, ma'am.

Good morning, everyone, and thank you for joining us for our conference call and webcast regarding our 2008 second 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 the interest rate, the equity markets, general economic conditions as they relate to the –'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 July 22. If not, you will find it on our website at umb.com. 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 second 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 first quarter UMB continued to deliver strong net income growth in the second quarter of 2008. Net income totaled $23.7 million, or $0.58 per diluted share, an 18.2% increase from $20.1 million, or $0.48 for the second quarter of 2007. EPS grew by more than 20% while industry average expected EPS growth was a negative 21.4%. We believe this is further proof that our time-tested model and operating principles will drive our success in any economic cycle. This strong financial performance was driven by 12.2% revenue growth, which was comprised of net interest income growth of 16.1% and noninterest income growth of 9.2%. This quarter also saw a record Scout Funds flows of $549 million. We continue to be well capitalized, something we believe is especially important in this current environment. As evidence of this, our Tier 1 leverage and total risk-based capital ratios as of June 30 were 14%, 10.1%, and 14.9%, respectively. Our credit quality remained strong with nonperforming loans at 0.20% and net charge-offs and 0.41%. These ratios are strong when compared to the industry, which at the end of the first quarter reported average net charge-offs of 0.44% and average nonperforming loans of 1.43%. The pressure on the financial services industry continues to validate our business model and prudent risk-based 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 continue to make progress optimizing the mix of our earning assets and liabilities. During the second quarter of 2008,…

Thanks, Mariner, and welcome everyone. As Mariner indicated, we reported quarterly earnings of $23.7 million, or $0.58 per diluted share for the second quarter, up 18.2% from $20.1 million, or $0.48 per share in 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 $16.1 million, or 9.2% over the same period in 2007. As rates fell, our interest income declined 9.9%. However, this decline was more than offset by a 42.2% decrease in our total interest expense, leading to the 16.1% increase in our net interest income. Net interest margins increased 28 basis points to 3.71% from 3.43% in the second quarter of 2007. This improvement was primarily due to lower cost of interest-bearing liabilities. In the second quarter of 2008, the cost of interest-bearing liabilities decreased 1.9% compared to 3.53% for the second quarter of 2007, a decline of 163 basis points. This offsets the 94 basis point decrease in average earning asset yields. Due to the declining rate environment free funds contribution declined 50 basis points from 91 basis points in the second quarter of 2007. During the second quarter $155 million in core portfolio securities rolled off at an average yield of 4.59%. In turn, we purchased $104 million of securities at an average yield of 3.60%. Over the next three months, $138 million of core investments with an average yield of 4.05% will roll off. Over the next 12 months, $683 million of core investments with an average yield of $4.48% will roll off. In the current lower rate environment, we expect the repricing of these securities to negatively impact our interest income. Nevertheless, thanks to the actions we took over the past three years to lengthen…

Thank you, Mike, and good morning, everyone. I would like to provide some additional details on our growth and operational strategies starting first with our strategy to grow our fee business. Being a broadly diversified financial services organization continues to be one of our greatest strengths. Driving improvement in our fee businesses continues to be a core strategy and we are pleased to report a 9.2% in noninterest income during the quarter. During this quarter we continued to add to our position of strength in healthcare services. Specifically, we are focused on the administration, custody, and card processing for HSA and FSA products. We are committed to maintaining our leadership position by adding new HSA and FSA savings and investment accounts and the associated debit cards. The number of healthcare accounts grew 58% in the second quarter with deposits and assets increasing 46% as compared to the same period last year. At the end of the quarter, we had more than 822,000 HSA and FSA accounts and nearly $129 million in deposits and investment assets. We are pleased with the continual growth in this business. Growing our card businesses is another key part of our fee business strategy. Critical element of this effort is to grow our commercial credit card program. Cardholder volume increased 19.6% over the same period last year. Commercial cardholder purchase volume posted another record in May with total volume of nearly $56 million. The growth in purchase volume also extends to our consumer and private-label customer segments. As a result, our total cardholder purchase volume increased by 18.3% to nearly $308 million in the second quarter of 2008 compared to $260 million in the second quarter of 2007. Likewise, new accounts for all segments totaled over 16,000, a 38.5% increase over new accounts generated during the…

Thank you, Peter. As we demonstrated again this quarter, our business model is time-tested. For 95 years we have remained true to our legacy, business strategies, and leadership principles, and as a result, we have built a financial services – that is strong and stable in all type of economies. This strength and stability comes from the fact our – is built on uncompromised underwriting standards and prudent risk-taking. We also derive strength and stability from a diverse revenue stream as represented by our high noninterest income as a percent of total revenue. As we mentioned earlier in the call, the industry average for nonperforming loans is 1.43% while UMB remained 86% lower at 0.20%. While others remain internally focused, UMB is out talking with customers and prospects and growing all of our lines of business. We have capital and liquidity, which allows us to make loans, service our customers’ needs, and act on strategic opportunities as they present themselves. As always, UMB remains focused on executing our growth strategies and deliver long-term shareholder value. Thank you for being on the call today. And with that, I will turn it over to the conference call operator to open the call for your questions. Thanks again.

Thank you. (Operator instructions) Your first question comes from the line of Christopher McGratty from KBW. Please go ahead. Christopher McGratty – Keefe Bruyette & Woods: Good morning.

Good morning. Christopher McGratty – Keefe Bruyette & Woods: I notice a pretty material widening between the spread on your wholesale borrowing cost this quarter and securities yield, which obviously provide some support to the margin expansion. Wonder if can just comment on the outlook, the sustainability of this trend and then maybe a few comments on the outlook for the margin.

Yeah, good morning, this is Mike Hagedorn. First, I would say we don’t look at those two lines by themselves. We manage the entire balance sheet, and especially our funding sources and our outgo process in its totality. But admitting that, core deposit growth clearly makes us less dependant on wholesale funding, and you can see that when you look at the quarter-over-quarter numbers, they were down almost $100 million in Fed funds and repo. The yield leverage is basically driven by the Fed funds decrease. So, clearly the yield on our borrowed funds has gone down. But then again I would point out that our loan-to-deposit ratio being where it is today, clearly makes us much less dependant on net interest margin for our total bottom line growth. And so, while sequentially, yes, the investment portfolio was down 19 basis points and funding is down 119 basis points, and that certainly provides some net interest margin leverage. We don’t manage it that way. We manage it in its totality, and I think you should look at our other funding sources, especially the way we grew core funding and deposits in the second quarter. Christopher McGratty – Keefe Bruyette & Woods: Okay. That’s helpful. Now, in terms of the reinvestment yields that you discussed (inaudible) of the balance sheet and what the incremental yield pickup or decline is and it seems this is the second quarter in a row that we have seen securities rolling off at a higher yield and the lower reimbursement yield. Now, obviously, it surprised me in terms of the margin this quarter and the degree of expansion, but is that going to weigh on the margin going forward?

Yeah, as I mentioned in my comments earlier, clearly it’s going to – we are not going to invest at least right now with our expectations for interest rates at the end of the year. To be reinvesting our investment portfolio run-off at yields that even come close to even equating what we had. However, that depends upon what the Fed does with interest rates and whether or not we shorten down to take advantage of potential increase in Fed fund rates in the future. Christopher McGratty – Keefe Bruyette & Woods: Okay. That’s great. Just one quick question on the credit side. You are obviously – your credit performance is head and shoulders above a lot of your peers, but the 41 basis points of charge-off this quarter was higher than historically you guys have put up. And the provision as well is a little bit higher than our forecast. Is this a good – is this kind of a good run rate going forward to think about the credit outlook for your guys?

Hi, this is Mariner. I would say that we had one relationship that we took a loss on in the quarter. If you look at the overall data, it’s probably a better way to look at it. Our year-to-date number is 0.28% for the six months and all of last year the number was at 0.33%. So we are actually six months into the year running lower than we were for all of last year. So, I think you can expect continued solid credit performance from us. Christopher McGratty – Keefe Bruyette & Woods: Okay. Thank you.

(Operator instructions) And our next question comes from the line of Peyton Green from FTN Midwest Securities. Please go ahead. Peyton Green – FTN Midwest Securities: Good morning. I was wondering if you could comment a little bit in terms of the underlying credit quality. If you are seeing any trends in terms of the watch list that might bother you not necessarily in the next quarter or two but really six to 12 months out. And then separately, how much are you paying for the acquisition of Citadel? And then in terms of hitting your accretion goals is dependant on cost saves or is it out-of-the-gate accretive? Thanks.

Peyton, it’s Mariner. I think I somewhat answered the way we would probably answer the credit question with my last answer. I – we don’t foresee any further deterioration on our credit quality because of the way we underwrite. We continue to underwrite the same way. So, we are in the risk business, so who knows, but we feel pretty good about our credit quality as it stands today. The question about the acquisition of Citadel, we would not make those – the premium public, nor intend to. I would say it’s a quality bank. We may – we paid a market premium for the bank. And as far as is it accretive, we expect it to be accretive next year modestly, and it folds right into our network down there. Not a whole lot of cost savings to be derived out of it. It’s just a bolt-on acquisition, fill-in acquisition for our presence in Colorado Springs. Peyton Green – FTN Midwest Securities: Okay, great. Thank you.

(Operator instructions) And there are no further questions. I will turn the call back over to management for any closing remarks.

Thank you very much for your interest in UMB. The call can be accessed via a replay at our website beginning in about two hours and it will run through July 30. And as always, you can contact me at Investor Relations with any follow-up questions by calling 816-860-7906. Again, we appreciate your interest and time.

Ladies and gentlemen, this concludes the UMB Financial Corporation’s second quarter conference call. If you would like to listen to a replay of today’s conference, please dial 1-800-405-2236, and access code 11116662#. ACT would like to thank you for your participation. You may now disconnect.