Good morning ladies and gentlemen and thank you for standing by. Welcome to the UMB Financial Corporation third-quarter conference call. During today's presentation all parties will be in a listen-only mode. Following the presentation the conference will be open for questions. (Operator instructions). This conference is being recorded today Wednesday, October 22, 2008. I would now like to turn the conference over to Abby Mayer, 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 third-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 each 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 rates, 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. Our earnings release includes both our GAAP based income statement and reconciliation to the non-GAAP measures discussed in the release which include certain pre-tax adjustments to noninterest income and noninterest expense, the tax effect of those adjustments and adjusted net income. These adjustments comprise a gain on the sale of our securities transfer product, the majority of which was recognized in the third quarter of 2007 with the final contingent payment recognized during the third quarter of 2008. The reconciliation for these items can also be found on our website 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 a more reliable indicator of ongoing operating performance. 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 October 21st. If not, you'll 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 third-quarter results. Peter will follow with a discussion of operating performance against our strategies. Following that, we will be happy to answer your questions. Now, I will turn the call over to Mariner Kemper.

Thank you Abby. Welcome everyone and thank you for joining us today. UMB continued to deliver strong net income growth in the third quarter of 2008. Net income totaled $21.8 million or $0.53 per diluted share, a 1.1% increase from $21.5 million or $0.51 per diluted share for the third quarter of 2007. EPS grew 3.9% while the industry average expected EPS growth was a negative 25%. These results reflect the sale of the securities transfer product for which we recorded a $1.1 million gain in the third quarter of 2008 and a $6.5 million gain in the third quarter of 2007. Excluding this transaction, UMB reported net income of $21.1 million or growth of 21.3% over the third quarter of 2007. These results illustrate that we continue to manage our business focusing on quality in the long-term rather than focusing on short-term earnings. In times like these our time-tested business model allows us to capitalize on our position of strength while others in the industry remain internally focused. This strong financial performance was driven by a 7.8% revenue growth, which was comprised of net interest income growth of 14.3% and noninterest income growth of 2.9%. Excluding the gain on the securities transfer sale, noninterest income grew 10.8% and total revenue grew 12.4%. We continue to be well capitalized, something we believe is important especially in the current environment. As evidence of this, our Tier 1 leverage and total risk-based capital ratio as of September 30 were 13.9%, 9.5%, and 14.8% respectively. Our credit quality remains solid and our nonperforming loans at 0.16% and net charge-offs at 0.21%. These ratios are strong relative to the industry, which at the end of the second quarter reported average net charge-offs of 0.68% and average nonperforming loans of 1.8%. The pressure in the…

Thanks, Mariner; and welcome everyone. As Mariner indicated, we reported quarterly earnings of $21.8 million or $0.53 per diluted share for the third quarter, up 1.1% from $21.5 million or $0.51 per share in the same period last year. Excluding the securities transfer gains in each quarter, net income would have been $21.1 million in the third quarter of 2008 and $17.4 million in the third quarter of 2007, an increase of 21.3%. The key driver of our net income was our ability to effectively manage our funding costs. Net interest income for the quarter increased $8.3 million or 14.3% over the same period in 2007. As rates fell, our interest income declined 9.9%. However, this decline was more than offset by a 40.6% decrease in our total interest expense leading to the 14.3% increase in our net interest income. Net interest margin increased 9 basis points to 3.57% from 3.48% in the third quarter of 2007. This improvement was primarily due to the lower cost of interest-bearing liabilities. In the third quarter of 2008, the costs of interest-bearing liabilities decreased to 1.88% compared to 3.51% in the third quarter of 2007, a decline of 163 basis points. This offsets the 111 basis point decrease in average earning asset yields. Due to the declining rate environment, free funds contribution declined to 49 basis points from 92 basis points in the third quarter of 2007. During the third quarter, $138 million in core portfolio securities rolled off at an average yield of 4.05%. In turn, we purchased $399 million of securities at an average yield of 3.68%. Over the next three months, $157 million of core investments with an average yield of 4.59% will roll off. Over the next twelve months, $810 million of core investments with an average yield of…

Thanks Mike. Good morning everyone. Let me take a moment to provide some additional details on our growth and operational strategies starting with our focus on growing our fee businesses. A significant strength of ours is that total revenue is split almost evenly between net interest income and noninterest income. This diversification allows us not to be bowing [ph] to the winds of interest rates, equity markets, or exclusively to other market forces. This quarter, noninterest income accounted for 54% of total revenues. Driving improvement in these businesses continues to be a core strategy. We are pleased to report noninterest income growth of 2.9% during the quarter and 10.8% on a non-GAAP basis. During the quarter, we continued to add to our position of strength in health care services base. Specifically, we're focused on the administration, custody and card processing for health savings accounts and flexible spending accounts. We're committed to maintaining our leadership position by adding new HSA and FSA savings and investment accounts and their associated debit cards. The number of accounts grew 56% in the third quarter with deposits and assets increasing 45% compared with the same period last year. At the end of the quarter, we had nearly 832,000 HSA and FSA accounts and nearly $139 million in deposits and investment assets. Additionally, we had $140.3 million in healthcare debit card purchase dollars bringing our year-to-date card purchase volume to $521.4 million. We are pleased with the continued growth of this business segment. Growing our card businesses is another part of our fee income strategy. A critical element of this effort is to grow our commercial credit card program. Cardholder volume increased 11.1% over the same period last year. Private label purchase volume also showed strong growth for the third quarter of 2008 increasing 20.8% over…

Our time-tested model gives us the capacity to make loans, service our customers’ needs and act on strategic opportunities that will arise. During these times, I want to remind you that you can count on more from us. Thank you all for being on the call with us today. And with that I will turn it back over the conference call operator and open it up for your questions. Thanks again.

Charlie Ernst – Sandler O'Neil Asset Management: Good morning guys.

Good morning.

Good morning. Charlie Ernst – Sandler O'Neil Asset Management: Can you guys add a little bit of color to the trust and securities processing line and just maybe breakout the revenue contribution from the mutual fund business versus the trust business versus the processing business and one other thing is to maybe add a little color as to how the assets in those business lines are priced?

Charlie, hi. It is Peter deSilva, good morning. With respect to those businesses we do break them out in our Ks and Qs, but let me give you some general commentary on them. Let me start with our fund servicing business up in Milwaukee. We have had some very, very strong quarters driven by a couple of factors. One, we have seen good new customer growth in that particular part of our business. Secondly, part of our revenue stream is supported by assets and these assets have been growing over the last few months – last few years. We have seen nice growth there as well. In our asset management business it is largely driven by 3 things. It is driven by our assets that we manage in the Scout Funds and we were able to hold those assets this quarter due to very, very strong flows, which is not what we are seeing in the marketplace. It has been driven by our corporate trust business, which has had a very, very strong last 12 months or so and it has been driven by our personal investment business if you will, where we have been picking up business in the local marketplaces. So, I mean, I think all in all, our trust and securities businesses have been performing very, very well. We are seeing some increased cost particularly in our securities processing businesses, where – particularly one client in particular we have has a large international presence and we have had to absorb some cost to support their international activities, but all in all, I think that those businesses have been performing very well and we hope that they will continue to do so. Charlie Ernst – Sandler O'Neil Asset Management: Is there any color you can give on the breakdown in revenue from the three areas that I mentioned?

Not beyond what is in the information you get from us.

Yes, Charles this is Mike. Not beyond the Q, which will put fund services separate and put the asset management together. I think what your question is, can you tell me what is personal trust and what are fund services? And all we provide is what is in the Q.

For color, obviously the institutional money management, our mutual fund business is really driven – is driving most of that growth. Charlie Ernst – Sandler O'Neil Asset Management: Okay, and then the securities processing business, how do you price that business. Is there a lag?

I am not quite sure I understand the question as it relates to what? Charlie Ernst – Sandler O'Neil Asset Management: You are pricing off of assets under custody, right?

Yes, generally speaking it is an asset based fee based upon assets under custody. Charlie Ernst – Sandler O'Neil Asset Management: And so is that sort of a real time pricing or does the pricing lag the market?

No, it does not lag the market. It is adjusted daily. Charlie Ernst – Sandler O'Neil Asset Management: Adjust daily.

[inaudible] move around. Charlie Ernst – Sandler O'Neil Asset Management: Okay great. That is what I was looking for. Thank you.

(Operator instructions) And our next question comes from the line of Peyton Green with FTN Midwest Securities. Please go ahead. Peyton Green – FTN Midwest Securities: Good morning. I had a couple of questions for you. I was wondering if you could comment a little bit on the recent cut by the Fed and also what effect that might have on your repricing assets over the next quarter or two and is there any way to get your interest-bearing deposit cost down compared to the repricing that occurred in the third quarter. I guess how much of the lack of movement in the third quarter was due to promotional pricing versus normal customer deposits that you just took on?

You know, obviously we’re going to have margin pressure through our assets repricing and we’ve done a lot that what we can do with our deposits. There’s some left to do, but you know there is a – we will see continued margin pressure. Peyton Green – FTN Midwest Securities: Okay.

Mike if you want to add. We do have, you know, on the asset side, you know, we obviously have a big home equity portfolio and a credit card portfolio, those have floors in them. Our commercial loans will reprice certainly and I don’t know if there is anything more he wants to add to that. Mike you want to add.

Yes. Maybe two things. I think there are some additional floors that come up now with commercial loans as well. So when there is a chance to reprice, that’s a new aspect and you know, at the beginning of next year we will have the opportunity to reprice some of our current campaigns and that should help somewhat as well. We are in the process of rerunning all of our models to not only account for the recent Fed cut, but also the expectation that there maybe some additional Fed cuts as well. Peyton Green – FTN Midwest Securities: Okay. And then separately, the loan growth was quite strong. If I guess it would be back [inaudible] around 15% year-over-year and how much of that was existing customers that utilize lines and how much of it was additional business with existing customers that maybe is not related to line utilization and then how much of it was just new customers that UMB has been banging on the doors and finally got the business.

It’s a good mix really of all of the above, but mostly from new customers. We had a – you know, we have had a wonderful time out there selling. Our team has been able to focus on selling while others are internally focused. It has been an opportunity and we see it continuing that way for market share grab. Peyton Green – FTN Midwest Securities: Okay. Is there anything you’re doing differently or is it just your standards or your standards or just the market’s move more towards them?

No, we are doing the same thing day in and day out, blocking and tackling. Peyton Green – FTN Midwest Securities: Okay great. Thank you very much.

And our next question comes from the line of Christopher McGratty with KBW. Please go ahead. Christopher McGratty – KBW: Good morning.

Good morning.

Good morning. Christopher McGratty – KBW: I was wondering you could discuss a little bit in more detail your near-term expectations for the margin. I think the fourth and the first quarter are typically impacted by the public fund flows and I was wondering if you can quantify if you expect similar declines I guess in the margin over the next couple of quarters as we have seen, maybe in similar years. Thank you.

Yes. This is Mike. I’ll answer that one. I think you can expect what you’ve seen in the previous years from UMB and that is that clearly the balances come in and we don’t expect different outstanding balances this time than what we’ve seen in last couple of years and I think you can expect a similar impact on our margin as you’ve seen in the previous years as well. And I think that the biggest issue we face bringing in those funds as you know the ability of the markets to invest those funds with investments that have a positive spread and some of the markets have significant dislocation. We think we have a plan built for that, but it is something that we’re currently clearly working on. Christopher McGratty – KBW: Okay great. And I guess my second question just on some of your fee-based revenues that are tied more to on the market and the economies. I wonder if you can just give a broad-based outlook on some of your – some of these line items such as trust trading, card. I was wondering if you’ve seen any softening given the recent weakness in the market.

It is Peter again. No I think as you know there are driven by market forces that we don’t control. Our revenues float up and down along with markets if you will, and we will be holding to that to some extent. So nothing specific other than you understand as assets grow and assets shrink, we get paid on basis points, and so there is some growth or some shrinkage in those revenues. Christopher McGratty – KBW: Thank you.

Thank you. Our next question comes from the line of Jordan Heimowitz with Philadelphia Financial. Please go ahead. Jordan Heimowitz – Philadelphia Financial: Hi guys. I’m sorry. I’m just confused because I’m pretty new to the company, but the – it says you said that the margin usually goes up in the fourth quarter historically and last quarter – I am sorry down in the fourth quarter, but last year went up like 7 or 8 basis points. So are you assuming about the same number in the fourth quarter, you’re assuming it will be down? Can you help me you know understand what you think, or if you just don’t do it that way, 50 basis points of cuts [inaudible] will impact the margin how much?

Yes. This is Mike. Of course, we’re not going to give guidance on any specific numbers, but I think in our comments you can tell that the margin is going to be under pressure. It’s not just because of the dollars are going to come in in the fourth quarter related to public funds. It’s also related to the interest rate cut that has happened as well. Historically, when public funds come in, the balance sheet goes up and the margin goes down slightly. And so, I think we probably would expect something similar to that to happen again. Jordan Heimowitz – Philadelphia Financial: Okay, so last year’s improvement was an anomaly.

Well, It’s a whole mixed bag. I mean it’s what we’re able to invest the funds in when they come in, and as you know investment yields – short-term investment yields are down and they were up more last year than they are this year. So it’s a myriad of things. Last year, the difference between last year and this year would basically come down to what we’re able to invest those funds in when they come in, and certainly short-term investments are down this year, so. Jordan Heimowitz – Philadelphia Financial: Okay, and how much is 50 basis points negatively impact you all else being equal?

Yes, we’re not going to give guidance on some specific number that 50 basis points equals x number of reduction in margin or increase in margin.

You know – Jordan Heimowitz – Philadelphia Financial: We doubt you have to do that in the GAAP table.

It’ll be in the Q and as far as interest rate sensitivity, yes.

And Jordan, given the fact that you’re new to the company, we’d love to have Abby reach out to you and give you a little update on the company. Jordan Heimowitz – Philadelphia Financial: Yes, I would like that very much actually.

Yes, we will do that. Jordan Heimowitz – Philadelphia Financial: Okay.

Thank you and I do not show any further questions at this time. Please continue.

Thank you very much for your interest in UMB. The call can be accessed via a replay at our website beginning at about 2 hours and it will run through November 5th. And as always you can contact UMB Investor Relations with any follow-up questions by calling 816-860-1685. Again, we appreciate your interest and time.

Ladies and gentlemen, this concludes the UMB Financial Corporation third quarter conference call. You may now disconnect. Thank you for using ACT conferencing.