Company: UMBFO
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028420
Chunk: 267

Company: UMB FINANCIAL CORP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7A
Chunk 267
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 net interest income of a 200-basis-point upward or a 300-basis-point downward gradual change (e.g. ramp) and immediate change (e.g. shock) of market interest rates over a two-year period.  In ramp scenarios, rates change gradually for a one-year period and remain constant in year two.  In shock scenarios, rates change immediately and the change is sustained for the remainder of the two year scenario horizon.  Assumptions are made to project rates for new loans and deposits based on historical analysis, management outlook and repricing strategies.  Asset prepayments and other market risks are developed from industry estimates of prepayment speeds and other market changes.  The results of these simulations can be significantly influenced by assumptions utilized and management evaluates the sensitivity of the simulation results on a regular basis.    

63

Table 21 shows the net interest income percentage increase or decrease over the next twelve- and twenty-four-month periods as of December 31, 2024 and 2023 based on hypothetical changes in interest rates and a constant sized balance sheet with runoff being replaced.    

Table 21

MARKET RISK

    Hypothetical change in interest rate – Rate Ramp

    Year One

    Year Two

    December 31,2024

    December 31,2023

    December 31,2024

    December 31,2023

    (basis points)
     
    Percentage change

    Percentage change

    Percentage change

    Percentage change

    200

    (3.9
    )%

    (0.7
    )%

    1.3
    %

    4.2
    %

    100

    (2.3
    )

    (0.3
    )

    (0.2
    )

    2.2

    Static

    —

    —

    —

    —

    (100)

    3.0

    0.3

    0.7

    (3.1
    )

    (200)

    6.1

    0.9

    1.6

    (5.7
    )

    (300)

    9.1

    1.5

    1.5

    (8.8
    )

    Hypothetical change in interest rate – Rate Shock

    Year One

    Year Two

    December 31,2024

    December 31,202