Umb Financial Corp (UMBF) Q1 2026 Earnings Call Transcript

Thank you for standing by. My name is Rebecca and I will be your conference operator today. At this time, I would like to welcome everyone to the UMB Financial First Quarter 2026 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I will now turn the call over to Kay Gregory, Investor Relations. Please go ahead.

Good morning and welcome to our first quarter 2026 call. Mariner Kemper, Chairman and CEO, and Ram Shankar, CFO, will share a few comments about our results then we'll open the call for questions from equity research analysts jim ryan president of the holding company and ceo of umb bank along with tom terry chief credit officer will be available for the question and answer session before we begin let me remind you that today's presentation contains forward-looking statements including the discussion of future financial and operating results as well as other opportunities management foresees Forward-looking statements and any pro forma metrics are subject to assumptions, risks, and uncertainties as outlined in our SEC filings and summarized in our presentation on slide 50. Actual results may differ from those set forth in forward-looking statements, which speak only as of today. We undertake no obligation to update them except to the extent required by securities laws. Presentation materials are available online at InvestorRelations.umb.com and include reconciliations of non-GAAP financial measures. All per-share metrics refer to common shares and are on a diluted share basis. Now I'll turn the call over to Mariner Kemper.

Thank you, Kay. Good morning, everyone. We'll share some brief comments and open it up for questions. We reported another strong quarter with results well ahead of expectations. We had 10.8% linked quarter annualized loan growth boosted by $2.3 billion in gross production, nine basis points of core margin expansion driven by a 24 basis point decrease in the cost of interest-bearing deposits, high quality credit metrics including 19 basis points of net charge off, and provision of $27 million driven mostly by the $1.4 billion increase in period in loan balances, and finally continued the minimum in our fee businesses, with strong contributions from corporate trusts, investment banking, and fund services, where Asset Center Administration increased nearly $20 billion from the prior quarter and stands at $565 billion. I'll let Ram get into more detail around our results in a moment, but first I'd like to address some of the headlines around the private credit industry, which appear to exaggerate exposures and risks at regional banks. Private credit has been around for years and has been and will continue to be an important part of capital formation. We have heard some concern that due to our varied lines of business, we may have some outsized exposures and could impact our performance. The fact is that we have negligible exposure to the private credit industry, and what exposure we do have is to high quality and experienced operators and low leverage to low loan-to-value metrics. We are proud we've added additional to explain what private credit means to us, and more importantly, what it doesn't. First, on slide 31, we have outlined our total NDFI lending exposure, providing additional color through the standard call report categories. As you can see, and they have continued to see with the largest portion from the definition, inherently carry even lower risk to lenders as they are short made to invest. The slide gives other 98% of NDFI balances. As you have heard us say before, lending to NDFIs is not a new phenomenon and has long been some additional details.

$51 million in net interest income from purchase accounting adjustments, $15.1 million of which was related to accelerated accretion from early payoffs of acquired loans. The benefit to net interest margin from total accretion was approximately 33 basis points. The projected contractual accretion, which is estimated at approximately $71 million for the remainder of 2026 and $79 million for 2027. These totals do not include any estimates for accelerated payoffs. Slides 12 and 13 include some key highlights and drivers of our quarter-over-quarter variances. Non-interest income for the quarter was $204.8 million, an increase of $6.4 million, or 3.2%. Drivers included strong performance from both fund services and corporate trusts, increased deposit service charges, and investment banking revenue, where municipal trading income increased by 39% from fourth quarter levels. Within the other income category, we had $5.9 million in non-recurring gains on previously charged off HDLF loans, a variance of $5.4 million from the fourth quarter. And we had a $3.8 million decline in Coley income, which has a similar offset in reduced deferred compensation expense. adjusting for investment gains the non-recurring items i noted and mark to market on coley our fee income for the first quarter was approximately 198 million on the expense side we had just 4.4 million in merger related costs compared to elevated levels in the prior quarter when the largest portion of contract termination and conversion expenses were recognized excluding the impact of one-time cost operating non-interest expense was 375.4 million a reduction of 4.2% compared to the fourth quarter. Largest drivers included a reduction of $5.9 million in salaries and benefits expense related to lower bonus and commissions accruals following strong fourth quarter performance and a $3.9 million reduction in deferred compensation expense, partially offset by seasonal increases in payroll taxes, insurance, and 401k expense. Compared to the guidance that provided last quarter, However, the favorability in expenses was driven by timing of marketing and other spend sooner than expected synergies realized on contract terminations and deferred compensation expense. Looking ahead, we would expect second quarter operating expense to be in line with the current consensus expectations of $383 million. The increase from first quarter primarily reflects one additional salary day, as well as the impact of our merit cycle that went into effect in April. Turning to the balance sheet, driving the 10.8% annualized growth that Mariner mentioned was 22% annualized growth in average C&I balances, led by strong activity in Texas. Other regions, including California, St. Louis, Colorado, and Utah posted double-digit quarterly growth. It's great to see the momentum building in several of our acquired regions, along with Utah, where we opened our first fiscal bank location in December. Our pipeline remained strong heading into the second quarter. Average deposits, as shown on slide 25, were essentially flat in the first quarter, as the 10.4% link quarter annual life increase in DDAs was largely offset by lower interest bearing deposit balances. We added a metric this quarter that adds customer repurchase agreement balances, which are deposit surrogates. Average customer funding increased $702 million, are 1.2% from the prior quarter and 4.8% on a linked quarter annualized basis. Coupled with, the residual impact of the rate cuts in the fourth quarter drove our cost of total deposits down by 19 basis points to 2.06%, while cost of interest-bearing deposits declined by 24 basis points. A blended beta for the quarter, driven by favorableness continued on performance for pricing on our soft-index deposits. Reported net interest margin for the first quarter was 3.38%, excluding the 33 basis points contribution from purchase accounting adjustments. Core margin was 3.05%, increasing 9 basis points sequentially. The primary drivers of the linked quarter increase in core net interest margin included benefits of a favorable deposit makeshift and repricing of deposits following the reduction and short-term interest rates and the positive impact of day count in the quarter, partially offset by loan repricing and lower loan fees and the impact of liquidity balances and a lower benefit from free funds. Relative to the first quarter adjusted margin of 3.05 percent that excludes accretion, we expect second quarter margin to be relatively flat as the benefits from fixed asset repricing are offset by day effect and stable deposit costs and mid-shift. I will add my typical caveat that actual margin and net interest income will depend on the levels of BDA growth and excess liquidity, any SOFR moments, and mid-shifts within the lending and funding portfolios. Finally, our effective tax rate was 21.1% for the first quarter compared to 20.3% for the fourth quarter. Looking ahead, our tax rate is expected to be between 20% and 22% for 2026. Now I'll turn it back over to the operator to begin the question and answer session.

At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Your first question comes in the line of John Ostrom with RBC Capital Markets. Your line is open.

Hey, good morning to everyone. Hey, good morning. Maybe Mariner and Jim, for you guys on the pipelines, good number, the 2.3 billion, maybe it's a little seasonality in there, but do you expect that to continue to grow from here? And you flagged this in the release, but have you seen any impact on pipelines from some of the geopolitical risks or higher energy costs?

I'll take that first, Jim. Feel free to add anything. You know, I think this is a good news story, which is that I don't really have anything new to tell you, you know, from being in this seat for 22 years. It's the same thing every quarter for 22 years, which is, you know, the next quarter looks pretty good. It is not seasonal at all. And, you know, we continue to book loans based on our strategy, bottoms up cap, you know, capability, capacity of the officer, market share opportunity in the markets that we're in and in the verticals we're in. And there is a very long runway for us across our entire footprint, including some new, very big markets like California.

Anything? The only thing I would add is it continues to be from all markets.

And then anything on the payoffs and paydowns slowing? I know that that number jumps around, but it was a pretty big step down in the quarter. And I guess, is there anything you would flag on that?

No, actually, I would say that the anticipated payoffs and paydowns in the first quarter actually materialized. So we expected that happen, happen. and it can kind of bump around that we're going to be higher for longer instead of seeing rates come down. We're not likely to see as much payoff is going to be the case, which seems to be the prevailing thought that we're, if not maybe, well, we'll just say we don't anticipate any rates coming down anytime soon. All right.

Thank you very much. Appreciate it.

Your next question comes to the line of Jared Shaw with Barclays. Your line is open.

Thank you.

Morning, Jared.

Hey, just, you know, looking at the fee income lines, you had some really good strength there this quarter. How should we think about fee income for the – going out for the year and for the second quarter, you know, sort of building off of what we saw this quarter?

Yeah, I mean, you know, we like – we don't really – I can't give you any guidance on expectations for growth and fee income other than the point you know backwards we continue to expect the same kind of and uh the pipeline all those visits and uh corporate trust and then you know the addition we've been giving you a little color and uh you know we expect to continue to see

exits yeah i mean expectations continue to be um without giving you any specific we're taking share in all those visits on the um you know at the time of the the heartland deal you talked about the opportunity of corporate trust and so in those new markets are you seeing any uh any activity there yet or is that still more in the uh in the future as you build out those those markets and capabilities yeah i think what we intended the message intended with that

is that corporate trust is a very local business and it's a brand business i think the brand extension having offices and signs and disability across uh and you know places for lawyers to meet together in offices and things like that you know it is brand extension and pushing stuff is and we've also done that I think last quarter I call it mostly brand extension.

This is Jim, Jared we in what Mariner just mentioned we continue to add to the team in all markets so we look for that to do nothing but grow in the Harlan markets.

Thanks and then if I could just follow up on And on the deposits, you know, Rami had called out sort of the impact to NIM from potential deposit makeshift in DDA growth. You know, if we look at average DDAs versus end of period, you know, it feels like there could be some good growth built in there. How should we think about sort of that DDA balance growing from here? Or is there just sort of a lot of quarter-end variability?

So I'm going to take that, Ron can jump in after me, but I think, as we've said many times, there's a couple of dynamics for us. Oftentimes, we try to guide you to thinking about averages rather than points in time, and that's because of all of our institutional businesses with things such as dividends and tax payments. And so that's picking up Wilmington Trust's team in California, adding team members across. And the momentum we have for clients in between those episodes without knowing is that that DDA baseline due to in-client acquisition that takes place in between those episodes.

Your next question comes to the line of Brandon Nossel with Hovey Group. your line is open.

Hey, good morning, everybody. Hope you're doing well. Good morning. Maybe just kicking off here on capital. Any early read on the updated capital rules overall, and then specifically how it ties into how you think about $100 billion, and maybe pair that alongside the increased activity we saw in the buyback this quarter?

Yeah, I'll take this. And just as a big part of our preliminary read, it's a net positive for us. Obviously, a lot of relief from risk-weighted assets. We're still studying it on, you know, going from 100% to 95% on some of the commercial relationships and LTV-based assignments on residential mortgages. And the negative is just the inclusion of AOCI. So, I still think it's a net positive for us in terms of what it means to our CET1, our total capital ratios.

That I would just add with the addition of Bartlett and how efficient we become, we're creating capital very quickly. on top of all that it's just a beautiful position and a position to have likely more flexibility with capital uh all the things that's getting closer to it we feel well positioned um and then again we all um maybe pivoting to more of a top level question on just the overall return profile

um you know pretty meaningful step up in roa over the past couple of quarters uh and i get that things can move around you know periods period but just conceptually are we at a level that you can more or less maintain going forward uh or their environmental pressures that kind of ease that back somewhat uh we expect to continue to perform at rom i don't know if you any other color yeah we don't give long-term guidance on our growth targets but you know if it's even if you exclude some of the uh purchase accounting things that go through our income statement if you exclude that our performance has been increasing because of strong operating leverage good balance sheet growth good margin trajectory so we feel pretty good about it and then to just add to your previous question on capital we still have almost 600 million dollars of pre-tax accretion left to take through our income statement for the next you know two three years right so that's six dollars of eps and close to 100 basis points of capital so that's on top of the regular out performance that we see in our legacy operations before all the purchase accounting benefits so we're pretty excited so it's the denominator that's growing at a fast clip and so that's why you saw what we did this quarter including you know doing some buybacks before our quiet period ended obviously we had 1.4 billion dollars of loan growth and you heard the comments about the pipeline looking pretty strong and then we will be more opportunistic about looking at our dividend and other opportunities i would also just add as a reminder one of the reasons which you know we've doubled our branch

and that is you know a really nice look what's the fit and uh that has gotten a lot more fantastic thanks for taking my questions.

Thanks, Brendan.

Your next question comes to the line of Casey Hare with Autonomous Research. Your line is open.

Yeah, great. Thanks. Good morning, guys. I wanted to touch on the NIM outlook from the loan yield side of things. Just where are new money yields versus that 652 level in the first quarter?

So you've got to look at our loan yields excluding the accretion right so if you look at one of our pages we show that the loan yields are close to just six percent under six percent uh if you exclude the accretion benefit from loans and for the first quarter our production yields are somewhere between six and six and a quarter so they are pretty accretive on new money coming in and then there's the whole fixed asset repricing that happens within the loan portfolio as well we have close to three billion dollars of loans that have you know some five percent uh rates that are repricing higher in today okay great yeah um Yeah, I understand that the core and then apologies if I missed this on the expenses, very good discipline here in the first quarter.

Just, I guess, some color on what drove that that 10 million of surprise versus your guidance. And, you know, with the guy being up in the second quarter, what are some of the drivers there?

Because I think there was some seasonal roll off in the in Tokyo. so just a little color on what's going on with the expenses yeah some of it was just uh i explained it in my prepared comments but i'll beat it uh some of it was just timing of when we expected some of the marketing spend to happen so that didn't happen as i had anticipated in the first quarter when i gave my guidance the other one is we also did a great job uh doing uh the expense saves from some of the contract terminations so they happen sooner than what uh would be expected uh that was part of our 385 to 390 guidance that i gave last quarter and then the step up in the second quarter is one more day and then uh it's the merit cycle that goes into effect in april for for our associate base so those are the two drivers that take uh 375. we also had an expense credit if you will of three million from our deferred comp so if you add that our first quarter baseline is more like 378 and what i guided to is about 383 that assumes the step up because of the merit cycle and uh um one more day gotcha thank you Thanks, Casey.

Your next question comes from the line of Janet Whitley with TD Cowell. Your line is open. Good morning, Janet.

On deposits, I want to better understand the reason for the decline or the muted deposit growth in the quarter. I thought 1Q was there's a seasonal public fund inflows, and even if I look at it on an average basis on page 25, I see commercial balances decline, although other parts have been growing.

So I just wanted to see whether this is just timing or seasonality or whether there was something else that attributes to somewhat muted deposit growth for the quarter. yeah thanks jane i i tried to address that a moment ago you know it's complex so i get it we we have so many lines of business that uh you know make make it harder to understand the reality so what we what we like how we like to describe it for for you is is that you need to think about it on average as a set of point in time anyway in general and that uh we have a lot of episodic stuff that goes through a lot of those business lines that you see on that page that 36 35 25 on 25 most of those businesses other than public funds is a seasonal deal so that's a drawdown in the quarter because of tax payments and such the rest of them are more episodic and so that's why you have to think about averages and I also like to point to 42 because you really need to think about what's happening to our deposits over time not even just we have a very long-term track record of adding clients so in between on a quarter to quarter basis you can see tax payments and dividend payments and putting money to work and all those kinds of things that can kind of bump things around a little bit but you really need to think about kind of multiple linked quarters and kind of year-over-year growth and what we're able to do as a company. And that's the way I think about it. That's the way I would like to think you all should think about it. What is our long-term ability to grow deposits? And we have an exceptional deposit generating machine. And so that's the way I would look at it. And so there's nothing, I guess what I would end with is there's nothing to pick up from at the end of the quarter, this activity, client count is good, nothing to read into.

It was not in a nutshell.

Great. Thanks for the color. And you've already touched on it earlier on total fees and really appreciate all the color you gave on the private credit exposure on slide 36. So this means that you're, at least from either deposit or for the fee perspective on the trusted security processing fees, which have been growing at a very strong pace, you're not seeing any disruption to that flow and the trajectory of that line item should just be continued growth since you're not really seeing any outflows on AUA and the fee income side of the business is that a fair way to put it yeah that's absolutely correct and you know one of the things i think is really important to know about this business for us is from time to

time investors will ask oh you know i'm going to take you down a little history left you know laying here for a second um there was a time when hedge funds were leading the way and as you're all aware hedge funds became out of favor and during that same time we got the same set of questions oh what's going to happen to your asset center slides away well the answer to that is private investing is still leading the way and so with our business basically as you go from hedge fund vehicle then private credit comes along and then private credit conversation is taking place with private credit it doesn't mean all this money goes to public investing. So we are the benefit as that money moves. So we have benefited handsomely over time regardless.

Got it. Thanks for all the color.

Thanks, Janet. Your next question, country line of Nathan Race with Piper Sandler. Your line is open.

Good morning, everyone. Thanks for taking the questions. Just going back to the capital discussion, you know, to your earlier points, you're generating a lot of capital internally just given the profitability profile and you obviously, you know, clips your CET1 target this quarter. And you know, just given that, you know, the capital's billions of strong clips, even with double-digit balance sheet growth, how are you guys thinking about, you know, using the buyback authorization as more of a kind of a continuous tool to manage excess capital?

I know it's been more episodic in the past, but, you know, just curious how you're thinking about, you know, buybacks as more of a kind of consistent component to excess capital management yeah i would i would i'm going to repeat myself here sorry anything we we we have a uh a long a long tested uh philosophy around that which is as long as we're able to do what we've been able to do and expect to continue to do the first and highest best you don't see that you know fading away we've got an excellent team a big deep pipe long tenured associate big new markets to pursue, having lots of success, you know, really across the board, Minneapolis has really turned on, California, New Mexico. I mean, the new markets are really performing in just, just early, we're kind of early days, you know, they're not even operating loans. And, you know, and then, then it's sort of the combination, what's, what, how's our M&A, and then, and And then the next will be opportunists, as we have been, will be opportunists.

And maybe in line of business, you know, are there any that's not working where you're seeing opportunities for greater efficiency or operational improvement going forward?

Yeah, I mean, well, first of all, anybody who's not trying to leverage technology to make their business more efficient should have their heads examined. So we're always looking at ways to operate better, and machine learning is being deployed across the whole organization, get smarter, better, faster, bolder. So we're deploying that as we always have. So, you know, I think AI is sort of an overused, misused term, being smart, using technology to make your business better. But so we're looking for ways to do that all the time. And I think you'll see us do that successfully going forward. Otherwise, I would say, really, it's just, you know, making sure the sales force, you know, has everything they need. And we're staying out of the way and letting our exceptional tenured team of, you know, best in the business folks get out there and build our business. I mean, I think we have a really tremendous opportunity as a company to sort of take the feel of local national. So we've been using that term. We really think we can take local national, you know, from Illinois to California and Milwaukee, and we think we can kind of be the go-to, you know, bank with a team that's in place and has deep pipelines.

Okay, great. I appreciate all the color. Thanks, Myrner.

Your next question comes from the line of Brian Wilski with Morgan Stanley. Your line is open.

Hi. Good morning. Just wanted to follow up on the core net interest margin guidance for the second quarter. Rom, you mentioned that new loan growth is accretive to core loan yields. You talked about the fixed rate asset repricing.

Can you just elaborate on some of the puts and takes and any headwinds that keep core NIMS stable in 2Q as opposed to up? yeah it's just the incremental cost of deposits relative to what we can make on the asset side right so if you look at our cost of interest bearing deposits in the last quarter was about 280 um you know we have as marina said we have very diversified funding mix and you know depends on where it comes from whether it comes from ddas or some other verticals or interest bearing cost or cost deposits can vary from one quarter to another quarter depending on where it's coming from so there are no no headwinds in that in that uh uh regard i think it's the absence of tailwinds that we have with rate cuts our internal view is you know there might be one rate cut maybe later this year maybe not um so there are no more you know tailwinds from that standpoint that benefit our beta so so neutral neutral as i said my art we expect our deposit cost to be stable and and and some accretion on the lending side because of new money yields and fixed assets repricing.

Stable with the opportunity of outperformance on-demand deposits. And again, I say opportunity, right? So that's a possibility for us.

Yeah, really appreciate that, Collar. And maybe just on the deposit side, you had really strong growth this quarter in the corporate trust deposits. Can you just remind us of some of the drivers for that business? I know UMB has an aviation business. You have a relatively new CLO business. Can you sort of just talk about what's working there and what the environment is right now for Corporate Trust?

Well, thank you. Well, it sounds like you could. Yeah, so, yeah, exactly. The aviation business is on, you know, also on a national basis. So lots of opportunity there. you know infrastructure spending is finally happening on a national basis within the coasts have really started to pick up you know we did this list out we talked which is allowing a big list on the infrastructure side get all the color and thank you for taking my questions thank you

bro your next question comes to the line of chris mcgreedy with kbw your line is open oh great morning Morning, Chris.

Ron, I appreciate the commitment to operating leverage this year. You think about the moving pieces over the medium term, you've got the accretion rundown. But it feels like this model is capable of operating leverage for the foreseeable future. I guess any response to that?

I mean, that's why even last time, and Marin has said it this time as well, right? Whether there's more private investment gains or less private investment gains, whether there's more accretion or less accretion our job is to maintain positive operating leverage as we build scale some of our strategic pillars are about building scale in each of the markets and we're doing that very selectively and then you know we're being more profitable as we grow into our sites as well so definitely this is not a environmental thing um this is always you know we want to weather all economic environments and achieve positive operating leverage that way we judge ourselves on operating leverage.

We think that's the way positive leverage.

And as a follow-up, is there anything magic about the 50% efficiency? I mean, you're kind of in the low 50s today, kind of balancing the need for investments, the benefits from AI and that dynamic. Is there anything magic about 50?

I would say absolutely nothing magic about 50. As a matter of fact, we feel like we're doing really well where we are. You know, being at 47 where we are right now is like a top-of-class number for just the net interest margin shop. And so the fact that we're able to perform at 47 with all of our institutional businesses is pretty good about that. So, no, I think there's something magic about SuperS.

Thanks, Chris.

Again, if you would like to ask a question, press star one on your telephone keypad. Your next question comes from the line of Brian Forum with Truist. Your line is open.

Hey, good morning. Mariner, I definitely appreciate you led with us. Anyone not using technology to get better needs to be examined. But I thought it was interesting. I think you said AI is overused or overhyped, or can you just expand a little bit on where you think maybe that AI or banks is a little too much?

No, not too much. No, that's not what I meant. What I said was I think the term is overused. I think that, you know, this is a big philosophical thing. I just think, you know, at the end of the day, AI is the use of data to run your business better and make better decisions and move faster. And it's not a new subject, is my point. And so we've, you know, the TV and Bloomberg and CNBC and the Wall Street Journal all really made a big deal out of it. But at the end of the day, it's the use of machine learning to get better, smarter, faster, bolder, which is not a new subject. And so that's all I was saying. I wasn't saying banks are doing too much of it or not enough of it or whatever. I was just saying you should sure as hell be doing it, leveraging the use of faster computing and better data to make your business better, smarter, faster, bolder. So, you know, if you're not doing that, you should be your head, your head examined. So that it wasn't it wasn't people are doing too much, but not enough of it. Sure as hell better be doing it.

You know, on M&A, as I'm sure you're aware, there just kind of became this narrative last year that somehow you were on the list to do a big deal. I thought it was interesting you kept using the word tuck-in. You know, any other parameters you'd give on, like, what an ideal tuck-in deal looks like for you? And maybe as an extension, if and when 100 billion line finally goes up, does the definition of, you know, the size of a Tufkin change or is it really independent of of that move in regulation?

Yeah. Yeah. Well, first, I would say, I mean, I'm still surprised that somehow there was some narrative that we were going to go do some big deal. So I've never understood that, you know, we would never give up control of our company, try to merge two management teams, give up half our board, blah, blah, blah, so on and so forth. We've never done that. We're never going to do that. We have a fantastic management team and a great strategy, and I have no need to do that. no desire to do that is sort of doing a deal that's not going to affect any of that where we can tuck it in it can still be our management team don't have to give up and compete with you know give up past them and try to manage you know merge two cultures etc so that's what tuck in supposed to mean and so and again I think our definitions are long used so it's kind of you I don't understand why my long-used definitions get misused or misunderstood, but what we say is a tuck-in, so a smaller deal, and then it would be in-market or contiguous where we can leverage our people, leverage synergies, leverage brands, and all that, and really importantly a granular locally important one every next dollar we lend out has to that uh is leverageable that has deposits that we can put to use and we have those that is thank you so much yep i will now turn the call back over to management for closing remarks well thank you everybody as always we love your interest in our company and the time and spend to get to know us better. I hope that page 31 helped dispel some of the misguided understanding of what the private credit stuff means to us, less than 1% of our loans, et cetera, and that we have a very long track record of being lenders that do the same thing across every asset class. We lend the same way no matter what we're lending into. And we've got a very long track record, which you can see on 42 and 22 is where the quality is. The intersection of growth on 42, and it is what we like to define as rarefied air that we live in. And, you know, we've got a long-tenured team and a great track record. So I just point you to our track record, I guess, as you think about those issues, and we're very excited about the ways ahead, and we appreciate your interest.

Thank you, Mariner, and as always, if you have follow-up questions, you can reach us at 816-860-7106. Thank you.

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.