Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 193

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1B
Chunk 193
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 the Company’s Consolidated Balance Sheets.Derivative fair values are determined using valuation techniques including discounted cash flow analysis on the expected cash flows from each derivative.  This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities.  The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements.  In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.This table provides a summary of the fair value of the Company’s derivative assets and liabilities as of December 31, 2024 and December 31, 2023 (in thousands): 

        Derivative Assets

        Derivative Liabilities

        December 31,

        December 31,

        Fair Value
         
        2024

        2023

        2024

        2023

        Interest Rate Products:

        Derivatives not designated as hedging instruments
         
        $
        102,118

        $
        99,574

        $
        107,386

        $
        105,016

        Derivatives designated as hedging instruments

        132,325

        61,922

        56

        67

        Total
         
        $
        234,443

        $
        161,496

        $
        107,442

        $
        105,083

       Fair Value Hedges of Interest Rate RiskThe Company is exposed to changes in the fair value of certain of its fixed-rate assets and liabilities due to changes in interest rates.  Interest rate swaps designated as fair value hedges involve making fixed rate payments to a counterparty in exchange for the Company receiving variable rate payments over the life of the agreements without the exchange of the underlying notional amount.  As of both December 31, 2024 and December 31, 2023, the Company did not have any interest rate swaps that were designated as fair value hedges of interest rate risk. During 2022 and 2023, the Company terminated 10 fair value hedges of interest rate risk associated with the Company's municipal bond securities.  For the years ended December 31,