Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 336

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 336
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 pay the line down.Non-Revolving Lines of Credit: include commercial and personal.  Lines that do not carry a revolving feature are generally associated with a specific expenditure or project, such as to purchase equipment or the construction of real estate.  The predominate risk associated with non-revolving lines is the diversion of funds for other expenditures.  If the funds get diverted, the contributory value to collateral suffers.Letters of Credit: includes standby letters of credit.  Generally, a standby letter of credit is established to provide assurance to the beneficiary that the applicant will perform certain obligations arising out of a separate transaction between the beneficiary and the applicant.  These obligations might be the performance of a service or delivery of a product.  If the obligations are not met, it gives the beneficiary the right to draw on the letter of credit.The ACL for off-balance sheet credit exposures was $4.1 million and $5.1 million as of December 31, 2024 and 2023, respectively, and was recorded in the Accrued expenses and taxes line of the Company’s Consolidated Balance Sheets.  A reduction of $950 thousand of provision for off-balance sheet credit exposures was recorded for the year ended December 31, 2024. Provision of $2.0 million and $500 thousand were recorded for off-balance sheet credit exposures for the years ended December 31, 2023 and 2022, respectively.  Provision for off-balance sheet credit exposures is recorded in the Provision for credit losses line of the Company’s Consolidated Statements of Income.

16. INCOME TAXESIncome taxes as set forth below produce effective income tax rates of 18.5% in 2024, 17.0% in 2023, and 18.9% in 2022.  These percentages are computed by dividing Income tax expense by Income before income taxes.

124

Income tax expense includes the following components (in thousands): 

        Year Ended December 31,

        2024

        2023

        2022

        Current tax

        Federal
         
        $
        107,697

        $
        81,565

        $
        92,673

        State

        8,507

        10,452

        13,964

        Total current tax expense

        116,204

        92,017

        106,637

        Deferred tax

        Federal

        (