Terry McEvoy: That’s great. Thanks again for taking my questions.
Mariner Kemper: Thanks, Terry.
Operator: [Operator Instructions] The next question comes from the line of David Long of Raymond James. Your line is now open. Please go ahead.
David Long: Good morning, everyone, and congrats on getting the deal announced this morning.
Mariner Kemper: Good morning.
David Long: First question I wanted to ask is about the revenue synergy, or I’m sorry, the expense synergies. With the numbers that you put out there, are you assuming any revenue synergies at this point?
Ram Shankar: 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 HTDLF 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.
David Long: Yeah. Of course. Okay. Great. And then the securities restructuring, the $2.5 billion, was the accretion from that, I assume, is included in your earnings per share outlook as well?
Ram Shankar: No. Not on the disclosed securities. Those are assumed to be gone on day one, so any accretion related to that is just part of the marks and it’s not part of the EPS accretion that we presented. The 800 basis points are the 31%.
Mariner Kemper: And ultimately that …
David Long: Got it. Thanks for that clarity.
Mariner Kemper: I was just going to say, and ultimately that move is derisking — an additional derisker for the transaction. We as an organization don’t take credit risk in our investment portfolio and so in their investment portfolio, they were taking some credit risks. We’re just removing that in the combined entity.
David Long: Got it. Got it. Thank you. And then, as you’ve mentioned, Bruce and his team did a lot of the heavy lifting with charter consolidation. With HTLF 3.0, they had some more expense rationalization initiatives out there. So when you look at the number, the 27.5% cost takeout from the current levels, it seems like they were progressing to do some of that on their own. You mentioned a lot of the heavy lifting has been done. It’s just — if I said to you that 27.5% seems conservative, how would you respond to that?
Mariner Kemper: Well, you hit the right words. What you see in our presentations is conservative, and no, what they contemplate is not included in our numbers. So whatever they do before close and whatever we do together after close from that rationalization perspective is not assumed in our assumptions.
David Long: Okay. And then, just the last thing, deal closing in the first quarter of 2025, that’s the expectation. What about the systems conversion? Any thoughts on timing of that?
Mariner Kemper: Yeah. We’re currently planning, and obviously, this is all very fluid. We don’t have a lot of control over what happens 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.
David Long: Right. Right. All right. Great. Thanks, guys. Appreciate it.
Ram Shankar: Thanks, David.
Operator: 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.
Mariner Kemper: Okay. Thank you all for your questions. As you can tell, we’re super excited about this opportunity. We’ve gotten to know Heartland 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 in our ability to really unlock and deliver that value. So, appreciate everybody’s interest in getting on and we’ll be talking again soon.
Kay Gregory: Thanks, Mariner. And as always, you can follow up. Any questions, Investor Relations at 816-860-7106. Thanks for your time today.
Operator: Ladies and gentlemen, this concludes today’s call. Thank you for joining. You may now disconnect your line.
