Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 157

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1B
Chunk 157
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 of collateral securing Leases and other loans is included below:Leases Leases are either loans to individuals for household, family and other personal expenditures or are loans related to all other direct financing and leveraged leases on property for leasing to lessees other than for household, family, and other personal expenditure purposes.  All leases are secured by the lease between the lessor and the lessee.  These assignments grant the creditor a security interest in the rent stream from any lease, an important source of cash to pay the note in case of the borrower’s default.Other Other loans are loans that are obligations of states and political subdivisions in the U.S., loans to non-depository financial institutions, loans for purchasing or carrying securities, or all other non-consumer loans.  Risk associated with other loans is tied to the underlying collateral by each type of loan.  Collateral is generally equipment, accounts receivable, inventory, 1-4 family residential construction and susceptible to the same risks mentioned with those collateral types previously.  Other risks consist of collateral that is secured by the stock of a non-depository financial institution, which can be unlisted stock with a limited market for the stock, or volatility of asset values driven by market performance.Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.  

97

The following table provides a summary of the amortized cost balance by collateral type and risk rating as of December 31, 2024 and 2023 (in thousands): 

        Leases

        Other

        Risk
         
        December 31, 2024

        December 31, 2023

        December 31, 2024

        December 31, 2023

        Pass
         
        $
        1,492

        $
        1,716

        $
        179,047

        $
        300,152

        Special Mention

        —

        —

        —

        —

        Substandard

        —

        —

        25

        96

        Doubtful

        —

        —

        —

        —

        Total
         
        $
        1,492

        $
        1,716

        $
        179,072

        $
        300,248

      Allowance for Credit Losses The ACL is a valuation account that is deducted from loans’ and HTM securities’ amortized cost bases to present the net