Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 58

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1A
Chunk 58
---
 which may pose challenges for management, including challenges related to the management and monitoring of new operations and associated increased costs and complexity. The Company may also face additional regulatory requirements and scrutiny from governmental authorities as a result of the significant increase in the size of its business. The Company’s failure to meet such heightened expectations may expose it to regulatory enforcement actions and civil penalties which could have an adverse material impact on the Company’s business, financial condition, operations and reputation and could jeopardize the Company’s ability to pursue acquisition opportunities.

In addition, HTLF’s historical bank subsidiary (HTLF Bank) was a Colorado state-chartered non-member bank subject to primary federal bank regulatory oversight by the FDIC and state bank regulatory oversight by the Colorado Department of Regulatory Agencies, Division of Banking, while the Bank is a national bank subject to oversight by the OCC. The laws, regulations, regulatory guidance and supervision applicable to HTLF Bank and the Bank therefore differ in ways that may affect the future operations of the Company following the acquisition of HTLF. 

Additionally, the internal policies of HTLF Bank and the Bank with regards to their investment portfolios may differ on factors such as hold limits per bond issuer, life of the bond, or credit risk appetite. As a result, there are assets on the balance sheet of HTLF Bank that the Bank does not hold, whether based on differences in regulatory oversight or internal policies. Further, the Company may replace such disposed assets with lower-yielding investments, any of which could impact its future earnings and return on equity.

There can be no assurances that the Company will be successful following the acquisition of HTLF or that it will realize the expected operating efficiencies, cost savings or other benefits currently anticipated from the acquisition of HTLF.

The Company’s internal controls, risk-management and compliance programs or functions may not be effective in identifying and mitigating risk and loss. The Company maintains standards on internal controls (including over financial reporting), and related disclosures which are regularly reviewed by management, as well as an enterprise risk-management program that is designed to identify, quantify, monitor, report, and control the risks that it faces. These include interest-rate risk, credit risk, liquidity risk, market risk, operational risk, reputational risk, and compliance risk. The Company also maintains a compliance program to identify, measure, assess, and report on its adherence to applicable law, policies, and procedures. While the Company assesses and strives to improve these controls and programs on an ongoing basis, there can be no assurance that its frameworks or models for risk management, compliance