Ladies and gentlemen thank you for standing by. Welcome to the UMB Financial Third Quarter 2013 Financial Results Conference Call. At this time all participants are in a listen-only mode, following the presentation, we will conduct a question-and-answer session and instructions will be provided at that time. (Operator Instructions) I would like to remind everyone that this conference is being recorded today, Wednesday October 23rd, 2013. And I will now turn the conference over to Kay McMillan, Director Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us for our conference call and webcast regarding our third quarter 2013 financial results. Before we begin, let me remind you that our comments in this conference call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of ‘95. 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 the 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 SEC 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 who are listening via webcast have had a chance to review our earnings release, which was issued yesterday afternoon. If not, you will find it on our website at umb.com. Also new this quarter we’ve published some supporting slides on our website that contains some of the drivers and metrics we’ll discuss today to make it a bit easier for you to follow along and to review our source. A link to the slides could be found at umb.com in the about UMB section or in the Investors section under Presentation. 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: Mariner will provide high level commentary on our results and Mike will review the details of our financials. Then Peter will review key fee income business drivers. Following that, we’d be happy to answer your questions. Now, I’ll turn the call over to Mariner Kemper.

Thank you, Kay. Good morning everyone and thank you for joining us today. Our third quarter results continue to reflect strong performance by our business units. Net income increased 31.8% to $34.4 million or $0.83 per diluted share, earned on total quarterly revenue of $207.2 million. Net interest income for the third quarter increased 6.5% compared to same quarter last year. Driven primarily by increased balance sheet volume, non-interest income increased 14.4% to a $121.6 million largely due to nearly 22% increase in trust and securities processing revenue. Non-interest income was 58.07% of total revenue for the quarter. Non-interest expense for the quarter was $153.1 million an increase of 4.9% compared to the same period a year ago. These results combine with our improved revenue, drove an efficiency ratio of 70.8% compared to 74.3% for the third quarter of 2012. Once again I’m happy to report strong loan growth, total net loans at September 30, 2013 were $6.4 billion, 21% higher than a year ago. On a linked quarter basis, this an increase of 2.6%. This is our 14th consecutive quarter of loan growth and seventh consecutive quarter of year-over-year double-digit loan growth. Utilization continued its upward trend increasing to 31.3% compared to 28.3% a year ago. Compared to the industry, nearly 1,000 regulated financial institutions that had announced results as of October 21st, 2013 reported an increase in loan balances of just 2.6%. Our reputation in the markets we serve as well as the experience in tenure of our relationship based lenders continued to drive our performance. Loan growth continues to come primarily from increased market shares, 55% of our year-to-date commercial loan growth has come from new client relationships. All of our regions once again reported double-digit year-over-year loan growth. In terms of loan types C&I lending was…

Thanks, Mariner and welcome everyone. This morning I will review our company’s financials and provide a more details from our four business segments results. During the third quarter, our average balance sheet grew 13.3% and average earning assets increased 14.1% to $13.9 billion. As we execute our strategy to replace the roll-off from the investment portfolio to achieve a more favorable earning asset mix in this low interest rate environment. More than 65% of the average earning asset growth came from loans. The average balance in our investment portfolio for the quarter was $7 billion, 7.3% higher than the third quarter a year ago. The average yield on securities was 1.99%, an increase of 4 basis points from last quarter and a decrease of 14 basis points from the third quarter of 2012. Detail on the investment portfolio can be found on the last page of the supporting slides available on our website. Activity during the third quarter included the roll-off of $265 million in portfolio securities at an average yield of 1.85%. In turn we purchased $77 million in securities at an average yield of 1.02%. Changes in the portfolio combined with updated key assumptions shortened the effective duration slightly from 47 months to 46.4 months on a linked quarter basis. We continue to have a bias for shortening the portfolio’s duration as securities mature which gives flexibility to fund loan growth. During the next three months, $305 million of investments with an average yield of 2.02% with cash flow and during the next 12 months $1.1 billion investments with an average yield of 1.88% with cash flow. The securities mix in our portfolio remained approximately same as the second quarter. Mortgage-backed securities and municipal securities represent 46% and 30% of the portfolio respectively. 56% of our total loan…

Thank you, Mike and good morning everyone. As Mariner mentioned earlier, non-interest income represented 58.7% of revenue this quarter. As a comparison the industry median level of non-interest income to total revenue in the second quarter was 19% according to SNL Financial. To provide additional context to our results, I’d like to discuss the primary drivers of fee income and highlight some of the developments in each of our operating segments. Much of the data I’ll cover is included in the supporting slides on our website. I’ll begin with the Institutional Investment Management segment, which is comprised of Scout Investments, equity and fixed income mutual funds, and separately managed investment accounts. Revenue in this segment is driven by average mutual fund and separately managed account assets, the mix of those assets, and net flows. And finally, equity and fixed income market performance. Solid performance in net flows combined to contribute to another good quarter for Scout, despite sometimes volatile financial markets. As we announced last week quarter end, assets under management stood at $29.3 billion, an increase of 29.6% compared to third quarter 2012. Scouts fixed income mutual funds closed the quarter with assets of $1.9 billion. And Scout equity mutual funds with assets of $12.1 billion. Scouts fixed income separate accounts totaled $12.3 billion and Scout equity separate accounts totaled $3 billion in assets under management. To add to context, the S&P 500 increased 5.2% and the MSCI EAFE Index increased 11.6% for the third quarter .If you look at our flows separated by equity and fixed income strategies across all of our Scout products, including the Scout funds and separately managed accounts. Page five under supporting materials shows the drivers of the change in assets under management both net flows and equity in fixed income market impact. During…

Thank you ladies and gentlemen we will now conduct a question-and-answer session. (Operator Instructions) Your first question today comes from the line of Chris McGratty of KBW. Please go ahead. Chris McGratty – KBW: Hi good morning guys.

Hi Chris. Chris McGratty – KBW: Mariner or Mike can you talk about pipelines today versus June 30 as well as the geography.

Sure pipeline is about what it was in the last quarter. And we continue to feel good about the pipeline as we did in the second quarter. In, for the third quarter similarly as we look into the fourth quarter. And regionally it seems to be coming from really all of our regions dollar volume as always tends to come from headquarters in Kansas City but percent growth looks pretty strong across all the regions. Chris McGratty – KBW: Okay and maybe a comment on prices, you talked about this, how quickly the book will turn over. I’ve been wondering what you see in terms of structure on price in these spreads. Thanks.

Yeah we do continue to see pricing pressure for all the same reasons that have existed for the last year at least with this persistent low industry environment, banks have continued to have limited options for how to invest their capital and other investor deposits. And it’s, so it’s continuing to apply pressure I think the, the spreads are certain to tighten a little bit, we’re going down less than we were. So there’s not as much pressure but there is continued pressure on the terms side again we continue to see banks do things there to remind us of previous periods for doing certain to do silly things. We obviously never play those games but we are seeing continued term expansion and… does that answers your question? Chris McGratty – KBW: That’s helpful yeah and then one is on the depositor, the billing one that’s going to leave in the fourth quarter. Can you maybe help us with the next, out of the largest accounts that you have with the bank, how granular is the book and was this the largest, largest deposit relationship at UMB. Thanks.

We pretty much have to stick with what we’ve already shared on that after the most part, we, as we said before we have no other depositors that have the similar characteristics. And that is a fact and it’s about all we’re able to share. Chris McGratty – KBW: Alright, thanks.

Your next question will come from the line of Matt Olney of Stephens Inc. Please go ahead.

Hey good morning guys this is Tyler in for Matt. I wanted to start on the loan growth so over 4% average growth versus in 2.5 in a period was that higher average growth more a function of the strength coming off 2Q or was the growth coming consistent throughout the quarter and maybe soft and heavier pay downs at the end of the quarter.

Do you mind doing that again?

So yeah so average growth was much higher than in the period growth, just curious the movements throughout the quarter do you see some higher pay downs at the end of the quarter causing in a period to be lower than the average growth?

No, no there’s nothing really in the data there driving anything material, just fluctuations.

Okay and then switching over to capital, so given the backdrop of your recent capital raise and then your expectation for the level of recent loan growth to be here I guess for the foreseeable future. How low are you comfortable managing your capital in terms of a TCE ratio?

Well you know obviously that as I mentioned in the prepared remarks, it obviously that’s part of why we raised additional capital. So we have plenty of runway I’m not sure we’re, we’re disclosing what, where we’re willing to get our TCE to but we believe we have plenty of runway.

Okay alright, thanks.

(Operator Instructions) Your next question will come from the line of Erika Najarian of Bank of America. Please go ahead. Erika Najarian – Bank of America: Hi. Good morning.

Hi Erica. Erika Najarian – Bank of America: My first question is a follow-up to the pricing question asked earlier. As we think about the trajectory or magnitude of margin compression going forward could you help us get a sense of where your pipeline yields are relative to the 365 that you reported this quarter?

Sure we, we talked I think last quarter on the last quarter conference call about, as we continue to manage the entire balance sheet both the fixed income side and the loans. We are attempting to get shorter on the fixed income book side and allowing for some duration expansion on the loan book in order to gain some yield in this environment. So we are remixing, we hope you’ll see that in our book over the coming quarters as we attempt to put more term in real estate debt on the books, was plenty of room for that as it relates to our mix currently. And it does allow us to see some expansion there. So we, you should see that it’s on a linked quarter basis you did see that a couple of basis points there and hope to demonstrate that in coming quarters. Erika Najarian – Bank of America: Okay and [concerning also] in terms of either earning aspect yield, how should, we should think about the earning asset yield going forward. But maybe could you give us some color on, I know you gave us quantitative color on where despite or relative to LIBOR in terms of the C&I loans that you are putting on?

Mike do you want to take that?

So Erica if I understand your question you are asking about spreads to LIBOR for new loan volume? Erika Najarian – Bank of America: Yes sir?

Or is it, I thought you were asking about the whole book, the whole go ahead…

Yeah I think she’s asking about new loan spreads to LIBOR. I think for us to have as we disclosed I think in our prepared remarks that any kind of material movement in that number or in the absolute yield you have to have an index change. So in some of your index change you’re not going to see a material change and are we going to see continuing pressure on the spread? All things being equal I think that, that’s exactly what banks will experience, we’re not unique in that. Erika Najarian – Bank of America: Okay and just so that I can understand correctly we, the strategy in the bond portfolio is completely removed in the median for loan rates in that why we may see some duration expansion that others banks, their strategy is to really continue to shorten this to be able to fund your loan growth regardless of where loan rates go from here?

Yeah I’ll take that one, I think it’s too pronged I think yes obviously we want to fund loan growth first and foremost so you have that right. But also if our balance sheet continues to grow and you saw a deposit growth was pretty robust in the third quarter. The investment portfolio will grow as well and so I think at least at this point we think the smart money is on a slightly lower duration in investment portfolio than in expanding duration. And quite honestly even if we were to expand average life for duration in investment portfolio we wouldn’t buy the kind of tenure necessary to actually make a material movement in the duration of the portfolio anyway we’re not buying for instance 10 plus year cash flows in investment portfolio. So I think it’s going to be very difficult honestly to get average growth there and to do it in a smart way given that we expect insurance to go up. Erika Najarian – Bank of America: Got it. Thank you for taking my question.

I’m showing no further questions at this time. I’ll now turn the call back to management for any closing.

Thank you very much for your interest in UMB. This call can be accessed via a replay at our website beginning in about two hours that will run through November 6. Again, we appreciate your interest and time. Thank you.

And thank you. Ladies and gentlemen, this does conclude the conference call for today. Again we thank you for your participation. And you may now disconnect your lines.