Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 21

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 21
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00
    %

    N/A
    %

    11.29
    %

    UMB Bank, n.a.

    4.50

    7.00

    6.50

    11.47

    Tier 1 Risk-Based Capital Ratio

    UMB Financial Corporation

    6.00

    8.50

    6.00

    11.29

    UMB Bank, n.a.

    6.00

    8.50

    8.00

    11.47

    Total Risk-Based Capital Ratio

    UMB Financial Corporation

    8.00

    10.50

    10.00

    13.21

    UMB Bank, n.a.

    8.00

    10.50

    10.00

    12.24

    Tier 1 Leverage Ratio

    UMB Financial Corporation

    4.00

    N/A

    N/A

    8.50

    UMB Bank, n.a.

    4.00

    N/A

    5.00

    8.52

These capital-to-assets ratios also play a central role in prompt corrective action (PCA), which is an enforcement framework used by the federal banking agencies to constrain the activities of banking organizations based on their levels of regulatory capital.  Five categories have been established using thresholds for the total risk-based capital ratio, the tier 1 risk-based capital ratio, the common-equity tier 1 risk-based capital ratio, and the leverage ratio: (1) well capitalized, (2) adequately capitalized, (3) undercapitalized, (4) significantly undercapitalized, and (5) critically undercapitalized.  While bank holding companies are not subject to the PCA framework, the FRB is empowered to compel a holding company to take measures—such as the execution of financial or performance guarantees—when PCA is required in connection with one of its depository-institution subsidiaries. Failure to be well-capitalized or to meet minimum capital requirements could result in certain 

9

mandatory and possible additional discretionary actions by regulators that, if undertaken, could have an adverse material effect on the Company’s operations or financial condition. For example, “brokered deposits,” as defined by FDIC regulations, may only be accepted by well capitalized depository institutions without prior regulatory approval or, with a waiver from the FD