Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 190

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1B
Chunk 190
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 that can be used to offset taxable income in future periods and reduce our income taxes payable in those future periods.  Most of these net operating losses expire at various times between 2025 and 2044 and some have an indefinite carryforward.  During the year ended December 31, 2024, due to cumulative losses, the Company established a state valuation allowance of $3.8 million, against certain state deferred tax assets.  As of December 31, 2024 and 2023, the Company had a valuation allowance of $2.5 million and $1.2 million, respectively, for certain state net operating losses as they are not expected to be realized.  In addition, as of December 31, 2024 and 2023, the Company had a valuation allowance of $8.6 million and $2.1 million, respectively, to reduce certain other state deferred tax assets to the amount management believes will be more likely than not realized.The net deferred tax asset at December 31, 2024 and December 31, 2023 are included in the Other assets line of the Company’s Consolidated Balance Sheets.The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions.  With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for tax years prior to 2019 in the jurisdictions in which it files.  Liabilities Associated With Unrecognized Tax BenefitsThe gross amount of unrecognized tax benefits totaled $8.3 million and $10.9 million at December 31, 2024 and 2023, respectively. The total amount of unrecognized tax benefits, net of associated deferred tax benefit, that would impact the effective tax rate, if recognized, would be $6.5 million and $8.6 million at December 31, 2024 and December 31, 2023, respectively. The unrecognized tax benefits relate to state tax positions that have a corresponding federal tax benefit. While it is expected that the amount of unrecognized tax benefits will change in the next twelve months, the Company does not expect this change to have a material impact on the financial condition, results of operations, or cash flows of the Company.  

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A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 

        December 31,

        2024

        2023

        Unrecognized tax benefits - opening balance