Speaker 1: Broadcasting live to New York, Bloomberg eleventh to Washington, d C.
Speaker 1: Bloomber to Boston, Bloomberg twelve to San Francisco, Bloomberg nine
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Speaker 1: around the globe the Bloomberg Radio plus appen Bloomberg dot gone.
Speaker 1: This is taking Stock. Coming up on taking Stock. We're
Speaker 1: going to take stock of the banking industry and the
Speaker 1: financial business all in the Midwest. We're gonna be speaking
Speaker 1: with the chairman, the president, and the chief executive officer
Speaker 1: of U m B Financial Corporation. They're based in Kansas City.
Speaker 1: I sure want to know what they think about the
Speaker 1: FED getting ready to raise interest rates in June, potentially
Speaker 1: what it means for their bottom line. Well, let's get
Speaker 1: to Charlie Pellocky's in the Bloomberg news room with his
Speaker 1: latest business flash. And I think you very much, Kathleen,
Speaker 1: thank you, Phim the Dawin s and Pierre lower Nan
Speaker 1: Stack is higher on this Fed Minutes Wednesday. We are
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Speaker 1: dot net Stocks declined SMP five hundred index heading for
Speaker 1: US seven week low, Federal reserve policy makers signaling a
Speaker 1: willingness to raise borrowing costs in June if the economy
Speaker 1: continues to improve. Stephen Stanley is chief economist at Amerspirepond Securities.
Speaker 1: He was our guest this afternoon right here on taking
Speaker 1: stock ad minutes reiterate that the Fed did not put
Speaker 1: a lot of stock in the low Q one GDP number. UH.
Speaker 1: We know from the statement that they were were weighing
Speaker 1: the strength and labor market conditions as more important than
Speaker 1: the UH low GDP number. So I think that's and
Speaker 1: that's certainly fleshed out quite well in the minute. Right now,
Speaker 1: we've got the tenure down twenty thirty seconds, the old
Speaker 1: one point eight seven percent, gold down eighteen eighty, the
Speaker 1: ounce now declining one and a half percent to twelve
Speaker 1: fifty eight. Crude oil moving Laura as well, giving up
Speaker 1: earlier gains down one percent, now lower by forty six cents.
Speaker 1: On West Texas Intermediate crewed eighty five, Brant crewed at
Speaker 1: sixty two, target falling the most in more than seven years,
Speaker 1: quarterly sales missing analysts estimates, and the discount chain delivering
Speaker 1: a disappointing forecast, target down seven and a half percent. Also,
Speaker 1: while with learnings today Lows had posted first quarter profit
Speaker 1: the top handless estimates, reinforcing the notion that Americans are
Speaker 1: still willing to spend on their homes. Loads up three
Speaker 1: point one percent again, SMP down six the trop of
Speaker 1: three tents of one percent, and at three thirty two
Speaker 1: on Wall Street. Let's take a look at some of
Speaker 1: the other news from around the world on Bloomberg Radio.
Speaker 1: Thank you, Charlie from the Bloomberg News Room. I'm David Garrett.
Speaker 1: This news update is brought to you by the Jeep
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Speaker 1: legendary four by four capability. Drive one at your local
Speaker 1: Jeep dealer today. Senator Bernie's Anders is on the campaign
Speaker 1: trail in California. Today, the Sanders supporter says he's ready
Speaker 1: to split from the party to back Sanders if Burne
Speaker 1: doesn't win the nomination. There's already a movement to form
Speaker 1: another party. Meantime, a recent w B Warn't pole has
Speaker 1: Sanders leading GEOP presumptive nominee Donald Trump by double digits
Speaker 1: in New Hampshire. That pole has Hillary Clinton and Trump
Speaker 1: locked in a tight race. Trump is coming to the
Speaker 1: financial rescue of former rival Chris Christie and the New
Speaker 1: Jersey Republican Party. They've incurred big debt from the George
Speaker 1: Washington Bridge scandal as well as the governor's presidential campaign. Tomorrow,
Speaker 1: Trump will attend a twenty five thousand dollar per person
Speaker 1: fundraiser for the state GOP, which has incurred legal fees
Speaker 1: responding to legislative subpoenas in the Bridge case. Trump and
Speaker 1: Christie will headline the event, along with a separate fundraiser
Speaker 1: to pay down Christie's campaign debt. Cyber security experts warned
Speaker 1: lawmakers today hackers are becoming increasingly sophisticated. Speaking at a
Speaker 1: forum today, Director of National Intelligence James Clappers had one
Speaker 1: group in particular poses the biggest threat. Bad cyber actors
Speaker 1: are using precisely these avenues, the stealer once every day,
Speaker 1: the Chinese and particular or cleaning us up. Because we
Speaker 1: know that we're supposed to do these simple things, and
Speaker 1: yet we don't do them. The NYPD, says one of
Speaker 1: its officers, fatally shot a man today on a busy
Speaker 1: Midtown street. Police say the unidentified forty six year old
Speaker 1: became belligerent at a food emporium as he tried to
Speaker 1: buy beer and pulled out an eight inch knife when
Speaker 1: police arrived. It wasn't clear whether the man had a
Speaker 1: history of mental illness or a criminal record. Global News
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Speaker 1: From the Bloomberg News Room, I'm David Gura, Charlie, and
Speaker 1: we thank you, and again recapping a mixed picture for stocks.
Speaker 1: Nastank is higher, the SMP five index down four down,
Speaker 1: industrials down forty six. That is a drop of three
Speaker 1: tenths of one percent. I'm Charlie Pelton. That's a Bloomberg
Speaker 1: Business flash. This is taking Stock with Kathleen Hayes and
Speaker 1: Pin Fox on Bloomberg Radio. Let's take a look at
Speaker 1: the financial industry, specifically the financial industry of one company,
Speaker 1: you m be Financial, based in Kansas City, Missouri. Shares
Speaker 1: are higher by more than nineteen percent so far this year.
Speaker 1: They pay a dividend of about one and three quarters
Speaker 1: of a percent and joining us now here in the
Speaker 1: studio is John Mariner Kemper. He is the chairman, the president,
Speaker 1: and the chief executive And Mike Hagadorn he is vice
Speaker 1: chairman and executive, vice president and chief financial officer. Gentlemen,
Speaker 1: thank you very much for joining us and coming in today. Uh, Marin,
Speaker 1: I won't begin by just maybe offering you a chance
Speaker 1: to talk a little bit about a gentleman named our
Speaker 1: Crosby Kemper, Jr. So that we can understand the genesis
Speaker 1: of the bank and United Missouri Bank Shares. How did
Speaker 1: that all happen? Oh? Okay, well, yeah, our Crosby would
Speaker 1: be my father. He went by Crosby and the R
Speaker 1: was Rufus. By the way, in case you're looking for
Speaker 1: a name for somebody like your dog, he said he Um.
Speaker 1: He was a great guy who's a fantastic banker. UM
Speaker 1: our company on the fourth generation to run our company
Speaker 1: and UM Kansas City Base went public in the eighties.
Speaker 1: UM and uh we made made it past the proverbial
Speaker 1: third generation. Uh. You know, we're companies are supposed to
Speaker 1: fail in the third generation, so we're officially in the
Speaker 1: fourth generation. I've been running the company for since two
Speaker 1: thousand four, and um, you know it's a largely a
Speaker 1: commercial bank. The bank itself so largely commercial across the Midwest.
Speaker 1: We operate in eight states, but about half our income
Speaker 1: comes from fee based businesses, and we have several other
Speaker 1: businesses that really make up our story. So a strong
Speaker 1: commercial bank. We protect our our credit quality through the
Speaker 1: diversity of our business. So we have a a institutional
Speaker 1: money management business called Scout. We have a fund services
Speaker 1: business where we do all the back office work for
Speaker 1: hedge funds, mutual fund private equity reads UM and that's
Speaker 1: headquartered in Milwaukee. And then we have a healthcare business
Speaker 1: where the sixth largest provider of h S a S
Speaker 1: in the country. That diversity gives us protection and our
Speaker 1: revenue through cycles, and also we believe really allows us
Speaker 1: to protect UM how we lend and and the way
Speaker 1: we run the bank so that we never find ourselves
Speaker 1: reaching because we're a one trick shop reaching for net
Speaker 1: inter sinco. So, Mike, you are president and CEO at
Speaker 1: umb Bank and you're the interim CFO. How are you
Speaker 1: guys doing, How are how is your bottom line, earnings,
Speaker 1: revenues and where you going? Yeah, we had a very
Speaker 1: strong first quarter. We had record card purchase volume. As
Speaker 1: an example, UM our efficiency initiative that we've been talking
Speaker 1: about since the end of the third quarter of last
Speaker 1: year's bearing fruit as well. And so we had a
Speaker 1: very strong on first quarter. And most importantly our balance sheet,
Speaker 1: as men are touched on, one of the things that's
Speaker 1: important to us is being able to be in a
Speaker 1: position where we do not have to make all of
Speaker 1: our revenue off the spread side of the business, and
Speaker 1: so fees become very important to us UH, and our
Speaker 1: balance sheet has grown quite a bit. Our loan growth
Speaker 1: over the first quarter of was up and on organic
Speaker 1: basis was up sixteen percent. So we we feel very
Speaker 1: good about where we're at right now. Mike, can you
Speaker 1: speak at all about what you're seeing regarding the energy
Speaker 1: industry in some of the states in which you operate,
Speaker 1: for example, Oklahoma, Colorado, and Texas. Yeah, most importantly probably Oklahoma.
Speaker 1: In Texas, UM three point three percent of our total
Speaker 1: loan book is in energy related credits, and as we
Speaker 1: disclosed in the first quarter, UH we have reserves over
Speaker 1: that of three point one percent UM and on criticized
Speaker 1: loans we have almost twelve percent reserved against us, So
Speaker 1: we feel very good about the energy holdings that we
Speaker 1: have and and even if we did have some hiccups there,
Speaker 1: we feel good about the reserves we have against it
Speaker 1: and don't have as much exposure to the upstream side
Speaker 1: of the business as other players might as well. So,
Speaker 1: fourth generation Mariner Camper, where do you want to take
Speaker 1: the bank next? What is your big dream vision challenge? Well,
Speaker 1: you know, I think we're on the right path as
Speaker 1: it is today. Our challenge so we grow about a
Speaker 1: billion The bank itself grows about a billion dollars a
Speaker 1: year on its own without him and a activity, and
Speaker 1: so we'll continue to grow. Our challenge as a company
Speaker 1: will be to maintain access to management, how nimble we are,
Speaker 1: how responsive we are, which is sort of built who
Speaker 1: we are. So our our challenge over time will do
Speaker 1: we make sure that we can rely on more people,
Speaker 1: uh spread spread accountability and trust across a bigger part
Speaker 1: of our population, to continue to execute the same level
Speaker 1: of service as we get bigger to either of you
Speaker 1: have any thoughts on the changes in which banks are
Speaker 1: able to finance themselves now, because preferred securities, I mean,
Speaker 1: that's went sort of away with the financial crisis. All right, Well,
Speaker 1: I think you know, each each organization has got a
Speaker 1: different story. I think is long my opinion, as long
Speaker 1: as the the institution has a story. Uh, the capital
Speaker 1: access is still pretty robust. Um. Money seems to be
Speaker 1: available and cheap and um, and then again depending on
Speaker 1: whether you're using your currency. So we have a strong currency,
Speaker 1: so we've we've been using our own currency to to
Speaker 1: drive our activity. So I don't see that really being
Speaker 1: a challenge unless you're unless you're broken. If you're broken,
Speaker 1: you've got all sorts of issues. Well, Maynard Camper, thank
Speaker 1: you so very much for joining US Chairman, President, CEO,
Speaker 1: U and B Financial Corporation along with Mike Hagitor and
Speaker 1: President CEO, chief financial Officer on an interim basis for
Speaker 1: umb Bank. This is Bloomberg Radio, coming up on taking stock,
Speaker 1: a look at range bound trading in the stock market,
Speaker 1: digesting the alphabet soup of Zerpe and tarp while also
Speaker 1: tell you about dragons and swans. Next