Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 335

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 335
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 with customers in the states of Missouri, Kansas, Colorado, Oklahoma, Nebraska, Arizona, Illinois, and Texas.  At December 31, 2024, the Company did not have any significant credit concentrations in any particular industry.

123

The following table summarizes the Company’s off-balance sheet financial instruments as described above (in thousands): 

        Contract or Notional Amount December 31,

        2024

        2023

        Commitments to extend credit for loans (excluding credit card loans)
         
        $
        12,904,749

        $
        12,831,831

        Commitments to extend credit under credit card loans

        5,474,758

        4,286,604

        Commercial letters of credit

        311

        1,224

        Standby letters of credit

        404,697

        407,574

        Forward contracts

        55,174

        26,471

        Spot foreign exchange contracts

        50,006

        4,830

        Commitments to extend credit for securities purchased under agreements to resell

        96,000

        —

       Allowance for Credit Losses on Off-Balance Sheet Credit ExposureThe Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company.  The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.  The estimate is based on expected utilization rates by portfolio segment.  Utilization rates are influenced by historical trends and current conditions.  The expected utilization rates are applied to the total commitment to determine the expected amount to be funded.  The allowance for off-balance sheet credit exposure is calculated by applying portfolio segment expected credit loss rates to the expected amount to be funded.The following categories of off-balance sheet credit exposures have been identified:Revolving Lines of Credit: includes commercial, construction, agricultural, personal, and home-equity.  Risk inherent to revolving lines of credit often are related to the susceptibility of an individual or business experiencing unpredictable cash flow or financial troubles, thus leading to payment default.  During these financial troubles, the borrower could have less than desirable assets collateralizing the revolving line of credit.  The financial strain the borrower is experiencing could lead to drawing against the line without the ability to