Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 268

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7A
Chunk 268
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3

    December 31,2024

    December 31,2023

    (basis points)
     
    Percentage change

    Percentage change

    Percentage change

    Percentage change

    200

    (2.7
    )%

    3.1
    %

    3.0
    %

    7.4
    %

    100

    (2.3
    )

    1.6

    0.6

    3.8

    Static

    —

    —

    —

    —

    (100)

    3.4

    (1.7
    )

    (0.4
    )

    (4.7
    )

    (200)

    6.8

    (2.8
    )

    (0.7
    )

    (9.3
    )

    (300)

    9.1

    (3.5
    )

    (2.3
    )

    (14.3
    )

The Company is liability sensitive to changes in interest rates in the next year.  Net interest income is predicted to decrease in all upward rate scenarios and increase in all downward rate scenarios.  In year two, net interest income is predicted to increase in all upward rate shock scenarios and decrease in all downward rate shock scenarios.  In rate ramp scenarios net interest income is predicted to increase in all scenarios except for the 100-basis-point upward ramp scenario.  The Company’s ability to price deposits consistent with its historical approach is a key assumption in these scenarios.  

Repricing Mismatch Analysis

The Company also evaluates its interest rate sensitivity position in an attempt to maintain a balance between the amount of interest-bearing assets and interest-bearing liabilities which are expected to mature or reprice at any point in time.  While a traditional repricing mismatch analysis (gap analysis) provides a snapshot of interest rate risk, it does not take into consideration that assets and liabilities with similar repricing characteristics may not, in fact, reprice at the same time or the same degree.  Also, it does not necessarily predict the impact of changes in general levels of interest rates on net interest income.

64

Table 22 is a static gap analysis, which presents the Company’s assets and liabilities, based on their repricing or maturity characteristics and reflecting principal amortization.  Table 23 presents the break-out of fixed and variable rate loans by repricing or maturity characteristics for each loan