Q1 2024 UMB Financial Corporation Earnings Call
With an opportunity for question and answer at the end, if you'd like to ask a question, please press staff followed by one on your telephone keypad. I would now like to hand this conference call over to our host, Kay Gregory, Investor Relations, please go ahead.
Good morning and thank you for joining us on our call with such short notice. Earlier this morning we announced our agreement to acquire Heartland Financial USA or H.TLF, a 19.4 billion asset bank headquartered in Denver.
Both companies also released first quarter 2024 results, and these materials can be found on a respective investor relations website. You will note that we have posted two presentations to our website, our typical quarterly review and an overview of the announced transaction.
We will provide some brief comments about UMV's first quarter results, and we'll spend most of the call discussing the announcement.
On the call today is Mariner Kemper, Chairman and CEO of UMV Financial, and Rom Shanker, CFO .
Following our comments, we'll open the call for questions. Jim Rhine, CEO of UMB Bank and 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, benefits, synergies, gains, and costs that the company expects to realize from this transaction, as well as other opportunities managed but foreseees.
Forward-looking statements are subject to assumptions, risks, and uncertainties.
These risks are included in our SEC filings and are summarized on slide two of our presentation.
Actual results may differ from those set forth and forward-looking statements which speak only as of today. We undertake no obligation to update them except to the extent required by security laws.
Reconciliation of non- GAAP financial measures have been included in the press release and the accompanying presentation. Pro forma financial information presented is based on March 31st, 2024 results for both companies.
Presentation materials are available online at investor relations. Unb.com. Now I'll turn the call over to Mariner Kemper.
Thank you, Kay, and good morning, everyone. On the heels of a great quarter, I'm very excited to share details about this transaction.
which accelerates U&B's growth strategy, further diversifying and de-risking our business model. The addition of this high-quality franchise is a great fit from a strategic financial and cultural perspective.
I'll ask ROM to share some quick thoughts about the border, and then we'll get right into the details of the transaction. Rom?
Thanks, Mayor NER. We had a great start of 2024, reporting gap earnings of $110.3 million for $2.25 for share.
Operating EPS of $2.47 per share represented an increase of 7.7%
compared to the fourth quarter of 2023.
The reported balance of growth that is rooted a 4.2% annualized increase in average loan balances.
led by construction draws of previously improved lines along with C&I. Product quality in our portfolio remains excellent with non-performing loans of eight basis points of total levels.
Let's charge-offs for five basic points of average loans for the quarter and charge us have average just four basis points over the past seven quarters.
Provision of 10 million included about 7 million related to the previously disclosed co-branded credit court portfolio acquisition.
The 10.4% increase in average deposit was driven largely by our institutional businesses, specifically investor solutions with increased sweep activity and corporate trust where balances fluctuate related to customer bond distributions and dividends.
DDA balances for 30% of average deposits for the first quarter. Looking ahead, second quarter DDAs are typically lower as clients make tax payments and cover seasonally high payroll expense related to the reset of FICA and payroll taxes.
The 3.9% increase in net interest income reflected continued loan growth and high levels of liquidity in addition to $1.4 million from amortization of a municipal bond hedge gain.
Net interest margin increased two basis points to 2.48% in the quarter outfacing the expectations I shared in January .
Positives include loan repricing and mix, as well as the impact of the bond HK.
Looking into the second quarter, we expect the modest pressure on net interest margin and net interest income, driven by an expected pipeline of higher-cost institutions.
institutional client deposits, lower liquidity levels, coupled with the seasonal contraction and DDA balances typically associated with tax payments.
Slide 18 of our first quarter deck covers the highlights and drivers of the first quarter.
Free income increased 19 million from the fourth quarter to 159 million
and benefited from an 18% increase in bank card fees, driven both by strong purchase volumes,
and lower rewards, as well as a $3 million increase in trust and securities processing income from our private wealth and institutional banking businesses that include corporate trusts, custody, and fund services.
Card purchase volumes increased 12% from a year ago to a record 4.6 billion driving the interchange income I noted earlier.
First quarter fees also included about $15 million of benefits that do not occur in the typical course of business as shown in our debt.
Operating expenses excluding the $53 million and the 13 million FDIC assessments incurred in the fourth and first quarters
increased 2.3% sequentially and reflected typical seasonal increase in payroll taxes, health insurance, and 401k expense.
Additional metrics about our first quarter results are included in our earnings release and slide next and we'll be happy to answer any follow-up questions during the Q&A portion of the call.
I'll hand it back to Mayerner to discuss this morning's exciting announcement.
Thanks, Rom. Our great first quarter results set up well for this transaction. And I'm looking forward to continuing the momentum throughout the rest of 2024 and beyond, bolstered by the acquisition we're here to discuss today.
UMB is an asset generating machine, consistently outpacing peer loan growth. We have a strong history of asset quality and a strong history of growing our fee business to support our total revenue.
Events of the past year have served to remind us the importance of diverse granular deposits.
While we have a well-developed diverse business model, one area where we have under penetrated is our consumer banking franchise. We have continued to look for the right transaction that will meet that need.
We screened for banks with a strong, under levered deposit base and a core retail component and quality credit metrics, all in the red markets.
Our search for the right fit has been elusive.
But we found the right unicorn in Hartle, a bank that understands the key part of a value of a franchise is in its deposits.
As we did our diligence, we came to realize that their strong deposit franchise was undervalued by the market at large. We saw this as an opportunity as we believe that banks of low-cost, granular deposit bases will garner a greater premium moving forward.
The combination of U&B and Heartland
create a nearly $65 billion asset bank. We'll accelerate UMB's organic growth strategy and create significant value. And importantly,
It is a great cultural fit. Our banking cultures are similar in tone with similar approaches to business and focus on our associates and communities.
The thesis for this transaction is laid out on slide three.
U&B will have significant scale in several markets, expanding density into some of our existing regions, including Denver, Kansas City, and Phoenix, as well as gaining entry into attractive new geographies, including Iowa, West Texas, New Mexico, Wisconsin, Illinois, Minnesota, and California.
We will combine two franchises with similar values of conservative credit culture, copulinary businesses.
U of these strong commercial banking capabilities will expand into new markets, and Heartland's successful consumer and small business efforts will bring further density and diversity to our business model.
In fact, we'll nearly double our retail presence.
Bruce and his leadership team have done a great job in recent years and done the heavy lifting, laying out the groundwork. This includes successfully handling the consolidation of their multiple charters and the strategy and vision they laid out in their 3.0 initiative.
Through the combination with us, we believe we can put our engine in their chassis to accelerate this transformation, extract value, and grow, and bring those benefits to Heartland's customers sooner and more efficiently.
Well, the combination results in day one TBV solution.
Driven entirely by interest rate marks, it positions as well and enhances ROTCE by approximately 800 basis points with an implied earnback of just 3.1 years.
will gain meaningful scale in both retail banking with the addition of 6 billion in consumer deposits.
with the raw material to sustain our growth. And in private wealth, Heartland adds an additional $4.9 billion in asset center management and administration and increases our totals by approximately 31%.
The pro forma loan to deposit ratio, 67%, preserves our conservative profile while positioning us for future growth.
Finally, the pricing and financial metrics are compelling with EPS accretion of 31% including rate marks.
and will strengthen our return in performance metrics.
As is typical with such analysis, the accretion math is based on consensus assessments. As demonstrated by both of our first quarter results, we hope to generate more shareholder value by continuing to execute.
The pricing multiples are attractive at 9.7 times 2025 consensus EPS, 6.7 times with fully-faced-in synergies, representing a price to tangible book value of 1.53 times.
This is an all-stock transaction. Details are on slide five. The exchange ratio is six with a .55 UMBF shares or every HCLF share.
This equates to the transaction value of approximately $2 billion. Concurrently, we announced this morning the pricing of a very successful, unwritten, public offering of $210 million or 2.8 million common shares. We also have a forward agreement on this offering.
which has an up to 18-month term. The offering includes participation from high-quality institutional investors, including some of our top shareholders.
We expect the transaction with Hartland to close in the first quarter of 2025, subject to regulatory and shareholder of rules.
We've been keeping our prudential regulators and other agencies engaged throughout our due diligence process.
And because of the feedback we have received, we are excited to move forward. On slide six, we're projecting top quartile profitability and capital generation, with key expectations shown on the right-hand side.
We anticipate strong core earnings power with approximately 700 million in net income and fully faced in cost days based on 2025 estimates.
Additionally, with a loan deposit ratio of 67%, we have about 10 billion of excess deposit capacity versus peer medians to fund our growth. Slide 8 is a snapshot of Part 1's footprint and bank divisions located in attractive and fast-growing markets.
We see the benefit of our combined scale in the chart on slide 9. We will have a 13 state footprint with a top 10 market share in five of those states.
On slide 10 and 11, we've included a look at Heartland's granular deposit base and commercially focused loan portfolio, followed by details on commercial real estate.
The investor real estate, CRE, is well diversified by property type and geography. The average loan size is just under 2 million and has no non-accruals at the end of the first quarter.
Details on the office portfolio is on the right-hand side of slide 12. Again, well-diversified with an average loan of the value of 57% in line with ours.
Moving to slide 14, we have a long-term look at ethical quality. If you follow us, you know asset quality is a topic I like to talk about.
U&B has a track record and metrics I'm extremely proud of, and Hartland has a similar approach to managing credit. On slide 15, we've shown the two companies side by side highlighting our capabilities on each.
The combination of U&B's products and services and Heartland's deposits, lending verticals, and customer base provides meaningful cross-sell opportunities.
Partland's strong retail and small business capabilities will have revenue synergies to U&B's platforms, and our commercial capabilities and access to key municipalities, newly acquired geographies could open doors for corporate trusts and other institutional businesses.
We will work hard for you to unlock values in this combined franchise. For example, in their 3.0 strategy, HCLF has laid out their vision to increase their fee income to 25%. With our more sophisticated Treasury management products,
and commercial card string.
We can penetrate deeper into their existing client base and new prospects in their markets.
This will accelerate fee income to mimic our profile and drive higher quality earnings. Similarly, since the American economy is driven more than 75% by small business, we are looking forward to leveraging their small business capabilities to our existing markets.
Finally, we provided a look at the diligence process that got up to this point on slide 16. As you can see, well over 200 of our associates, along with multiple outside experts,
have given hundreds of hours reviewing data on multiple lines of business, processes, operational support functions, and the risks involved in all areas.
Every line of business reviewed their own area, met with counterparties at Artland, and documented their findings for a comprehensive review. At the end of the day, our work gives us confidence in the metrics and assumptions surrounding the transaction.
Now I'll turn it back over to ROM to cover additional details on the transaction. Rom?
Thanks, Mayor Nair and good morning everyone. The transaction assumptions are on slide 17. The earnings projections we've included are based on consensus estimates for 2025, grown at a 5% rate thereafter. We see upside to both sets of projections, but wanted to be conservative for our presentation.
We put together a thorough bottoms up analysis and expect cost saves of 27.5% of hardland's non-interest expense, 40% of which is to be recognized in 2025, assuming the first quarter close.
And as Mariner noted, we've identified numerous revenue synergies that we're excited about, but are not included in our metrics, providing additional potential for upside.
One-time charges were similarly put together with the bottom-up analysis, with inputs from all business lines across the bank and are $215 million in total. Purchase accounting marks are important to get right, and we use a prominent third-party firm to assist in our calculations.
Our transaction model assumes a conservative credit mark of 1.3% on hardland's loans and a core deposit intangible of 3.4% of deposits amortized over 10 years using the sum of the year's digit method.
The credit mark, based on internal reviews and independent third-party analysis, is roughly 28% higher than Hartman's current ACL of $124 million.
The interest rate marks assumed on the loan portfolio are expected to agree over five years in total on a straight-line basis and are estimated to be approximately $550 million at close.
For the securities portfolio, we expect to sell approximately 2.5 billion of hard-less bonds that don't match our investment profile simultaneously with the closing of the transaction and reinvest those proceeds into agency mortgage-back securities and or U.S. Treasuries.
Inclusive of the rate marks on loans, retain securities, and other debt instruments, we expect approximately 660 million of after-tax income to flow through earnings over time.
Interest rate marks clearly have a large role on the merger map and financial metrics and flows. The core impact of the acquisition is very attractive.
If you strip out the rate marks and CDI, the deal is roughly 15% EPS accretive. Tangible book value dilution in this case would be approximately 6%, and unbacked would go to just under two years.
Turning to slide 18, the combined franchise will generate meaningful capital. At close, including the equity offering, we expect CET1 to be 10.1%.
Combined earnings plus cost savings is nearly 700 million per year and net of presumed dividends that equates to 115 basis points for a year of CET1 before accounting for any balance sheet growth.
Additionally, the previously mentioned 660 million in rate marks over the next few years will add another 135 basis points of CET1.
Based on these factors, we expect to return to our first quarter, 24 CET1 ratio of 11.1% in less than 18 months after close. Now, I'll turn it over to the operator for the Q&A session.
I'm gonnae.
Thank you. If you'd like to register a question, please press star followed by one on your telephone keypad, ensuring that your line is unmuted locally. If you'd like to withdraw your question at any time, you can do so by pressing star followed by two. As a reminder, to ask your question, star followed by one on your telephone keypad.
Our first question comes from the line of Timur, Brazilla, of Wells Fargo. Your line is now open. Please go ahead.
Have a good morning.
Good morning, Timor.
Can you maybe go through some details on how the deal came about? Was this a negotiated transaction between the two parties or was this something that was more of an auction process?
Yeah, Timor, this is Mariner. Known the company for some time and built a long-term relationship with their CEO , Bruce, you'll be able to read the details and further detail in the proxy when it comes out.
Okay. And then Mariner, you know, UMB has had
quite good success.
particularly in a relative basis, maybe to a more challenge group of being able to maintain a high growth rate. I know this deal is accreted from an earning standpoint, but just looking at a growth rate standpoint, is this dilutive to kind of standalone UMB-type growth, or do you think that once everything is layered in, that growth rate as a combined company is going to be unchanged or even faster?
Yeah, I mean, our expectation is, as you know, the modeling that you have and is used in these decks as that consensus.
We certainly expect to, you know, expect and hope that we can accelerate growth
through layering our engine on top of their chassis, you know, and all the revenue synergies. So that is our desired expectation.
Okay, what about from a balance sheet standpoint? Does it dilute the opportunities for balance sheet growth? Maybe on a percentage standpoint as a combined company or is the expectation that balance sheet growth is going to accelerate as well?
Well, I think we're really thinking about this from the standpoint of raw materials providing funding for growth.
From that perspective, that's kind of how we're thinking about it. And also layering in another 100 plus distribution points to continue to build our strong profile as a deposit
generator ourselves. So on a combined basis, we expect that we
can leverage the combined entity to continue the already great profile we have as being a strong funding provider to back up our excellent asset generating machine that we already are.
Okay, and then just last one for me. Maybe can you provide a composition of the cost savings, kind of where are those coming from? And with the greater kind of focus on the retail component of that franchise,
I'm assuming maybe it doesn't come quite as much from the branch network. Any kind of detail you can provide on where those cost savings are going to materialize would be great. Thanks.
Yeah, Timor, this is Rom, and it's the usual stuff. Unlike other deals, there's not a lot of branch overlap in the combined franchises, even in the three common markets of Kansas City, Denver, and Phoenix.
So not a lot of those opportunities may be a handful of branches, but otherwise it's the standard people process technology contracts that are part of our bottoms of analysis when we came up with the cost saves.
Great. Thanks for the questions.
Thank you. Your next question comes from the line of Chris McGarty of KBW. Your line is now open. Please go ahead.
Oh, great. Thanks for the question.
Romer, the balance sheet's got plenty of capacity post-closing. He talked about a 67-LD ratio.
I'm interested in maybe how does this deal affect your thoughts on that over time and also how will the rate profile change if it does with the deal?
I'll take the first part and let Ron follow up on the rate mark. On the change in the profile, nothing really changes in the way we operate. That's one of the beauties of doing this deal is we think it allows us to continue to be the company that we are. So, you know, we, as I said many times, and you've seen in our numbers for years, we've been able to generate two times our peer group and assets.
and quarter in quarter out for pretty much the 20 years I've been CEO and this allows us you know this is raw material this allows us to to you know lever what they've got at some level but also it's given us distribution and outlets to continue to do what we do generating
are
raw material to just keep the engine moving.
with the rate market, let's promise. Yeah, the combined balance sheet, or Chris, we expected to be modestly asset sensitive. They have a very similar profile on the loan side, about 63% of their loans are variable in nature compared to our 65%. And then the added, as Meriner talked about in a script, the added benefit is they have a very attractive, low cost, low beta, funding base that's retail, that's basically doubling our retail presence. So we're modestly asset sensitive on a combined balance sheet basis.
Okay, great. And then just a couple, I guess, housekeeping ones, Ram, the forward settlement just
Can you just help us on, like, will those shares come in immediately at close? And then also, if I'm reading slide 17, is the Cecil Day 2 roughly $80 million, if I'm looking at that? Okay.
On the second question, yes, 50% of the 160 million, so yes, the non-BCD, BCD makes this about 50-50. And then, I'm sorry, remind me a first question.
The forward settlement logistics. Oh, the forward settlement, thank you. Yeah, the, yeah, so the price is fixed out of yesterday at $75. We raised $2.8 million shares at $210 million. So we have the option with the forward provider to pick that out any time between now and 18 months. So it's an 18-month contract, but as you rightly surmised,
we would probably do it closer to the actual closing of the transaction.
There is no impact or change in price. It's just a cash settlement based on when we decide to pull that optionality.
Okay, but so Sivinga the shares coming in at close, that's easiest way to do it. Thank you. Yeah, I would model it no way. It's just our way of deferring delusion and taking capital just in time. It avoids the draft before the close.
Yep, got it.
Yeah.
Thank you. Thank you.
The next question comes from the line of Jared Shaw of Barcliffe. Your line is now open, please go ahead.
Hey, good morning.
Hey, morning, Jared. We're in. You know, maybe, hey, looking at the, going back to the expenses, um,
Do you feel that now that you're going to be approaching, you know, you're going to be bigger at $67 billion, are there other investments that you'll need to make to offset some of those expenses just to handle the larger balance sheet?
Hey Jared, this Mariner. Basically, we're all along the line that basically translates into what the regulators call heightened standards, so that's the $50 billion threshold. What I would tell you is that we were well on our way, you know, we're sitting at $45 billion
Um,
And so we had hired a year ago, PWC for a gap analysis that came back clean. We know what we need to do. We're well prepared all pretty well along the way to do that anyway, even before, and independent of doing this transaction. So very comfortable with where we stand from that standpoint. There will be some investment we need to make along the way, but it's identified and easy to do. regulators have, you know, been supportive of the process that we've been going through, and we're very comfortable and excited about, you know, crossing that $50 billion threshold. And then I think as we did the bottoms of analysis, Jared, that was part of our consideration is included in our analysis as well.
We end up taking, you know, Harvlin has a lot of great people actually to lean on as we cross that threshold.
Okay, okay, great. So that that growth rate is or that that investment is sort of reflected in the growth rate and in keeping that growth rate probably pro forma? Yeah, for sure. Yeah.
Okay. And then on Capital, you mentioned
you know, getting back to CET1 of 11% in 18 months. Is that how we should think about sort of your target of where you would like CET1 to be, or has that been a little bit elevated because you were hoping to be able to deploy in a deal like this? I'm just thinking, you know, trying to match the...
the forward settlement contract with the buyback and post-close.
Yeah, so, you know, we don't do guidance on that. I would say that that's where we are now, right, and so and where we expect to be at, you know, at close, then therefore that's...
We're comfortable there, right? And I think just generally speaking a bit of a higher level capital is expected in the operating environments that we're all in now. So, you know, no specific guidance on that.
And, you know, we were a little below that or a little above that.
nuance from one quarter of the next or something that it doesn't you know drive anything one way or the other but yeah definitely
We're certainly comfortable in that range and I think it's prudent to carry a little bit higher level capital in the industry these days.
Yeah, okay. And then there's finally for me, maybe a...
more of a boring earnings question versus an exciting deal question. But when we look at the DDA trends, you know, strong two quarters there, you talked about seasonality. It's been a little while since we've seen
I think a normal second quarter seasonality. What's the potential impact on that? And then, you know, apart from the seasonality, do we think that DDAs have found their floor and now we're in a normal growth environment? Yeah.
Our guidance for margin for the next quarter was a handful of basis points downward pressure just from a mixed shift. So we've talked for long about a healthy institutional deposit pipeline, so we're expecting those to come sometime in the second quarter, coupled with what might happen with seasonality on the DDA side. So that's baked into our margin guidance that we said for about a few basis points.
You know, whether it's bottom-down DDA, I mean, we're at 30%. The rest of the deposits, the interest-bearing deposit base, as you saw this quarter, is growing pretty rapidly. So just as a result of that map, we might see DDA as a percentage come down, but, you know, the hope is, you know, our DDAs are somewhere between 9.5 and 10 billion.
Yeah, we don't expect too much more rotation.
If you take the seasonality out, so likely at the bottom on rotation based on the interest environment. And I think Roms just saying, you know, with the growth of everything else on a percentage basis, it may come down slightly.
The next question comes from the line of Terry McAvoy of Steven Zink. Your line is now open. Please go ahead.
Hi, thanks for taking my questions. I was one of you just talk about the due diligence on H.TLF's franchise people infrastructure. They've gone through a lot of the last couple of years in terms of an upset shareholder base, collapsing the charters, et cetera. So what type of disruption do you expect? How do you minimize that disruption, particularly on the consumer banking side, which you've talked about the value there a few times on the call?
Yeah, thanks to that question. Obviously you're referring to some public disclosures around some issues the board had a couple years ago. It's well behind them. As I said, we've gotten to know this company over time and very comfortable that they've settled those issues and they're behind them.
the due justice process and the charter class, exciting. We see all that really what they've been going through the last couple of years as great opportunity. They've been, you know, as I would describe.
plowing the field and planting the seeds and we basically get to harvest.
So they have done a lot of heavy lifting and that's great for us.
collapsing the charter, centralizing activities. So they've done a lot of really great work to, you know, really kind of mimic the kind of company we are and allow us really to harvest all that awesome work.
Thanks for that. And then just as a follow-up, what are your thoughts on maintaining and growing that food and ag business lending portfolio, which is, I think, about a billion dollars today? Is that a business you'd like to continue to grow?
Yeah, we absolutely love that. It's one of the things we really like about the transaction. You know, we're actually the 24th largest agricultural lender in the country ourselves.
They picked up Robo's team, and Robo has a really great reputation in the business.
So they have a great team of people in California, and the average size is pretty small, and the diligence is great on that book. And we're really excited to leverage their team and our team combined and just keep rocking and rolling with our ag business unit.
That's great. Thanks again for taking my questions.
Thanks, Jerry.
As a reminder, if you'd like to ask a question, please press star, followed by one, on your telephone keypad. The next question comes from the line of David Long of Raymond James. Your line is now open. Please go ahead.
Good morning, everyone, and congrats on getting the deal announced this morning. The question I wanted to ask is
about the expense synergies with your with the numbers that you put out there are you assuming any revenue synergies at this point
No, we're not in the model that we presented, but that's the opportunity. And as Mariners said, the harvest that we can do on the great work done already by the HCLF team. So that's not included. We haven't quantified it or disclosed it, but certainly there's a lot of opportunities that we see as part of our diligence process.
Yep, of course. Okay, great. And then the securities restructuring the $2.5 billion was the accretion from that, that I assume is included in your earnings for share outlook as well?
No, not on the disposed securities. Those are soon to be gone on day one. So there's any accretion related to that. It's just part of the marks. And it's not part of the EPS equation that be presented, the 800 basis points or the 31%.
And also to that the GERISN. And clarity.
I was just going to say, and ultimately that move is a de-risking, an additional de-risker for the transaction.
You know, we as an organization don't take credit risk in our investment portfolio and so in their investment portfolio they were taking some credit risk. We're just removing that in the combined entity.
Got it, got it, thank you.
You know, as you've mentioned, Bruce and his team did a lot of a heavy listing with charter consolidation. With HTF 3.0, they had some more expense rationalization initiatives out there. So when you look at the number, the 27 and a half percent,
cost takeout from the current levels, it seems like they were progressing to do that. Some of that on their own, you mentioned a lot of heavy lifting has been done. It's just, you know, if I said to you that 27.5% seems conservative, how would you respond to that?
Well, you hit the right words, what you see in our presentations as conservative and know what they contemplate is not included in our numbers. So whatever they do before closed and whatever we do together after close from that rationalization perspective is not assumed in our assumptions.
Okay, and then just the last thing, deal closing in the first quarter of 25, that's the expectation. What about the system's conversion? Any thoughts on timing of that?
Yeah, we're currently planning and obviously this is all very fluid. We don't have a lot of control over what happens, you know, the regulatory process. But if it closes when we expect it to, our current plan is to close to convert in October , early October on a three-day weekend.
ultimately of next year of 2025.
Right, right. All right. Great. Thanks guys. Appreciate it.
Thank you, David. Thank you.
As there are no additional questions, waiting at this time I'd like to hand the conference back over to the UMB management team for closing remarks.
Okay, thank you all for your questions. As you can tell, we're super excited about this opportunity. We've gotten to know Hartland and their amazing team for a handful of years now, and we're coming together. We're super excited to bring these two great companies together and unlock serious value for all of you, our shareholders. And we're highly confident our ability to really...
really unlock and deliver that value. So appreciate everybody's interest in getting on and we'll be talking again soon. Thanks, Mariner. And as always, you can follow up. Any questions? Investor Relations at 816-860-7106.
Thanks for your time today.
Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your line.
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