Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 313

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 313
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 of loss as they are either explicitly or implicitly guaranteed by the U.S. government. Therefore, the Company’s expected lifetime loss for these portfolios is zero and there is no ACL recorded for these portfolios. 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 Company’s holdings are in general obligation bonds as well as private placement bonds, which have very low historical default rates due to issuers generally having unlimited taxing authority to service the debt.  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. The underlying bonds are evaluated for credit losses in conjunction with management’s estimate of the ACL based on credit rating.The following table shows the amortized cost basis by credit rating of the Company’s held-to-maturity State and political subdivisions bond investments at December 31, 2024 and 2023 (in thousands): 

        Amortized Cost Basis by Credit Rating - HTM Debt Securities

        2024
         
        AAA

        AA

        A

        BBB

        BB

        CCC-C

        Total

        State and political subdivisions:

        Competitive
         
        $
        —

        $
        —

        $
        424,690

        $
        610,351

        $
        36,628

        $
        21,990

        $
        1,093,659

        Utilities

        759,798

        761,706

        99,127

        24,509

        648

        —

        1,645,788

        Total state and political subdivisions
         
        $
        759,798

        $
        761,706

        $
        523,817

        $
        634,860

        $
        37,276

        $
        21,990

        $
        2,739,447

106

        Amortized Cost Basis by Credit Rating - HTM Debt Securities

        2023
         
        AAA

        AA

        A

        BBB

        BB

        B

        CCC-C

        Total

        State and political subdivisions:

        Competitive
         
        $
        —