Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 163

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1B
Chunk 163
---
 State and political subdivisions

        388

        200,835

        (9,202
        )

        1,476

        890,545

        (65,785
        )

        1,864

        1,091,380

        (74,987
        )

        Corporates

        —

        —

        —

        267

        351,275

        (30,794
        )

        267

        351,275

        (30,794
        )

        Collateralized loan obligations

        1

        4,246

        (4
        )

        32

        210,872

        (1,068
        )

        33

        215,118

        (1,072
        )

        Total

        411

        $
        734,181

        $
        (9,949
        )

        2,706

        $
        5,840,885

        $
        (618,782
        )

        3,117

        $
        6,575,066

        $
        (628,731
        )
       
       The unrealized losses in the Company’s investments were caused by changes in interest rates, and not from a decline in credit of the underlying issuers.  The U.S. Treasury, U.S. Agency, and GSE mortgage-backed securities are all considered to be agency-backed securities with no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. The changes in fair value in the agency-backed portfolios are solely driven by change in interest rates caused by changing economic conditions. The Company has no knowledge of any underlying credit issues and the cash flows underlying the debt securities have not changed and are not expected to be impacted by changes in interest rates.  For the State and political subdivision portfolio, the majority of the Company’s holdings are in general obligation bonds, which have a very low historical default rate due to issuers generally having unlimited taxing authority to service the debt.  For the State and political, Corporates, and Collateralized loan obligations portfolios, the Company has a robust process for monitoring credit risk, including both pre-purchase and ongoing post-purchase credit reviews and analysis.  The Company monitors credit ratings of all bond issuers in these segments and reviews available financial data, including market and sector trends.

104

During the year ended December 31, 2023,