Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 94

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1B
Chunk 94
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3, and 2022 respectively. These amounts equate to effective tax rates of 18.5%, 17.0%, and 18.9% for 2024, 2023 and 2022, respectively. The increase in the effective tax rate from 2023 to 2024 is primarily attributable to a smaller portion of pre-tax income being earned from tax-exempt municipal securities and higher non-deductible acquisition costs in 2024. These increases were partially offset by an increase in federal tax credits, net of related amortization.  The decrease in the effective tax rate from 2022 to 2023 is primarily attributable to a larger portion of pre-tax income being earned from tax-exempt municipal securities and excludable life insurance policy gains.   

For further information on income taxes refer to Note 16, “Income Taxes,” in the Notes to the Consolidated Financial Statements.

Business Segments

The Company has strategically aligned its operations into the following three reportable segments: Commercial Banking, Institutional Banking, and Personal Banking (collectively, the Business Segments). Senior executive officers regularly evaluate Business Segment financial results produced by the Company’s internal reporting system in deciding how to allocate resources and assess performance for individual Business Segments.  The management accounting system assigns balance sheet and income statement items to each Business Segment using methodologies that are refined on an ongoing basis. For comparability purposes, amounts in all periods are based on methodologies in effect at December 31, 2024.  Previously reported results have been reclassified in this Form 10-K to conform to the Company’s current organizational structure. 

Table 8

COMMERCIAL BANKING OPERATING RESULTS (in thousands)

    Year Ended December 31,

    DollarChange

    PercentChange

    2024

    2023

    24-23

    24-23

    Net interest income
     
    $
    665,587

    $
    598,371

    $
    67,216

    11.2
    %

    Provision for credit losses

    50,155

    33,184

    16,971

    51.1

    Noninterest income

    130,187

    97,614

    32,573

    33.4

    Noninterest expense

    356,136

    365,856

    (9,720
    )

    (2.7