Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 192

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1B
Chunk 192
---
318
        )

        —

        —

        —

        —

        Total
         
        $
        39,151

        $
        (45,088
        )
         
        $
        14,173

        $
        (17,196
        )
         
        $
        11,397

        $
        (13,889
        )
       
      (1)The credit programs disclosed above met the conditions to apply the proportional amortization method.  The amortization expense is included in Income tax expense in the Consolidated Statements of Income and Amortization of securities premiums, net of discount accretion in the Consolidated Statements of Cash Flows.  There were no credit programs that were not eligible for the proportional amortization method.(2)The tax benefit recognized primarily reflects the Federal tax credits generated from the investment, which are included in Income tax expense in the Consolidated Statements of Income. 

17. DERIVATIVES AND HEDGING ACTIVITIESRisk Management Objective of Using DerivativesThe Company is exposed to certain risks arising from both its business operations and economic conditions.  The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities.  Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates.  The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s loans and borrowings. The Company also has interest rate derivatives that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk of the Company’s assets or liabilities. The Company has entered into an offsetting position for each of these 

127

derivative instruments with a matching instrument from another financial institution in order to minimize its net risk exposure resulting from such transactions.   Fair Values of Derivative Instruments on the Consolidated Balance Sheets  The table below presents the fair value of the Company’s derivative financial instruments as of December 31, 2024 and 2023.  The Company’s derivative assets and derivative liabilities are located within Other assets and Other liabilities, respectively, on