Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 334

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 334
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 As of December 31, 2024 and 2023, standby letters of credit totaling $26.7 million and $29.7 million, respectively, were with related parties to the Company.The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities.  The Company holds collateral supporting those commitments when deemed necessary.  Collateral varies but may include such items as those described for commitments to extend credit.Futures contracts are contracts for delayed delivery of securities or money market instruments in which the seller agrees to make delivery at a specified future date, of a specified instrument, at a specified yield.  Risks arise from the possible inability of counterparties to meet the terms of their contracts and from movement in securities values and interest rates.  Instruments used in trading activities are carried at fair value and gains and losses on futures contracts are settled in cash daily.  Any changes in the fair value are recognized in trading and investment banking income.The Company uses contracts to offset interest rate risk on specific securities held in the trading portfolio.  As of December 31, 2024 and 2023, there were no notional amounts outstanding for these contracts.   There were no open futures contract positions during the years ended December 31, 2024 or 2023.  There was no net futures activity for the years ended December 31, 2024, 2023 or 2022.  The Company controls the credit risk of its futures contracts through credit approvals, limits and monitoring procedures.The Company also enters into foreign exchange contracts on a limited basis.  For operating purposes, the Company maintains certain balances in foreign banks. Foreign exchange contracts are purchased on a monthly basis to avoid foreign exchange risk on these foreign balances.  The Company will also enter into foreign exchange contracts to facilitate foreign exchange needs of customers.  The Company will enter into a contract to buy or sell a foreign currency at a future date only as part of a contract to sell or buy the foreign currency at the same future date to a customer.  During 2024, contracts to purchase and to sell foreign currency averaged approximately $46.8 million compared to $19.3 million during 2023.  The net gains on these foreign exchange contracts for the years ended December 31, 2024, 2023 and 2022 were $6.1 million, $4.2 million and $3.4 million, respectively.With respect to group concentrations of credit risk, most of the Company’s business activity is