Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 298

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 298
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Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.”  The ASU allows entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits.  Previously, this method was only available for qualifying tax equity investments in low-income housing tax credit structures.  The Company adopted the amended guidance on January 1, 2024, upon which the Company elected to continue the use of the practical expedient under ASC 323-740-35-4 to account for low-income housing and historic tax credit investments.  Under the practical expedient, the cost of a tax equity investment is amortized in proportion to income tax credits only and is recorded on a net basis within income tax expense.  The adoption of this amendment did not have any impact on the Consolidated Financial Statements aside from additional disclosures. See Note 16, “Income Taxes” for related disclosures. Segment Reporting In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The ASU requires expanded segment disclosures, including disclosure of significant segment expenses and other segment items on an annual and interim basis. The Company adopted the amended guidance for the annual financial statements in 2024 and the interim disclosure requirements will be effective for interim periods beginning January 1, 2025. The adoption of this amendment did not have any impact on the Consolidated Financial Statements aside from additional disclosures. See Note 12, “Business Segment Reporting” for related disclosures.Income Taxes In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.”  The ASU is intended to enhance the transparency and decision usefulness of income tax disclosures.  The amendments in this update require additional disclosures primarily related to the rate reconciliation and income taxes paid information.  The amendments in this update are effective for fiscal years beginning after December 15, 2024.  Early adoption is permitted.  The adoption of this accounting pronouncement will have no impact on the Consolidated Financial Statements aside from additional disclosures.

3. LOANS AND ALLOWANCE FOR CREDIT LOSSESLoan Origination/Risk ManagementThe Company has certain lending policies and procedures in place that are designed to minimize the level of risk within the loan portfolio.  Diversification of the loan