13 unchanged sentences
However, in a declining interest rate environment, as loans with floors are repaid they generally are replaced with new loans which have lower interest rate floors.
−Removed: As of June 30, 2024, our loans with interest rate floors totaled $5.05 billion and had a weighted average floor rate of 4.59%, compared to a current average note rate of 6.73%.
−Removed: Our loans with interest rates at their floors at June 30, 2024, totaled $1.29 billion and had a weighted average note rate of 4.14%.
+Added: As of September 30, 2024, our loans with interest rate floors totaled $5.18 billion and had a weighted average floor rate of 4.70%, compared to a current average note rate of 6.65%.
+Added: Our loans with interest rates at their floors at September 30, 2024, totaled $1.35 billion and had a weighted average note rate of 4.44%.
The Company actively manages its exposure to interest rate risk through on-going adjustments to the mix of interest-earning assets and funding sources that affect the repricing speeds of loans, investments, interest-bearing deposits and borrowings.
13 unchanged sentences
The interest rate sensitivity analysis includes a rate ramp sensitivity scenario, which assumes a gradual change in market interest rates at all maturities during the first year, as well as a rate shock interest rate sensitivity scenario, which assumes an instantaneous and sustained uniform change in market interest rates at all maturities.
−Removed: We update and prepare simulation modeling at least quarterly for review by senior management and oversight by the directors.
+Added: We update and prepare simulation modeling at least quarterly for review by senior management and oversight by the Board of Directors.
We believe the data and assumptions are realistic representations of our portfolio and possible outcomes under the various interest rate scenarios.
Nonetheless, the interest rate sensitivity of our net interest income and net economic value of equity could vary substantially if different assumptions were used or if actual experience differs from the assumptions used.
−Removed: The following tables set forth, as of June 30, 2024, the estimated changes in our net interest income over one-year and two-year time horizons for our rate ramp and rate shock interest rate sensitivity scenarios, and the estimated changes in economic value of equity for our rate shock interest rate sensitivity scenario based on the indicated interest rate environments (dollars in thousands):
+Added: The following tables set forth, as of September 30, 2024, the estimated changes in our net interest income over one-year and two-year time horizons for our rate ramp and rate shock interest rate sensitivity scenarios, and the estimated changes in economic value of equity for our rate shock interest rate sensitivity scenario based on the indicated interest rate environments (dollars in thousands):
Interest Rate Risk Indicators - Rate Ramp
−Removed: June 30, 2024
+Added: September 30, 2024
Estimated Increase (Decrease) in
9 unchanged sentences
however, no rates are allowed to go below zero.
−Removed: The targeted Federal Funds Rate was between 5.25% and 5.50% at June 30, 2024.
+Added: The targeted Federal Funds Rate was between 4.75% and 5.00% at September 30, 2024.
Interest Rate Risk Indicators - Rate Shock
−Removed: June 30, 2024
+Added: September 30, 2024
Estimated Increase (Decrease) in
10 unchanged sentences
however, no rates are allowed to go below zero.
−Removed: The targeted Federal Funds Rate was between 5.25% and 5.50% at June 30, 2024.
+Added: The targeted Federal Funds Rate was between 4.75% and 5.00% at September 30, 2024.
Another monitoring tool for assessing interest rate risk is gap analysis.
12 unchanged sentences
Finally, the ability of some borrowers to service their debt may decrease in the event of a severe change in market rates.
−Removed: The following table presents our interest sensitivity gap between interest-earning assets and interest-bearing liabilities at June 30, 2024 (dollars in thousands), based on the amounts of interest-earning assets and interest-bearing liabilities which are anticipated by us, based upon certain assumptions, to reprice or mature in each of the future periods shown.
−Removed: At June 30, 2024, total interest-earning assets maturing or repricing within one year exceeded total interest-bearing liabilities maturing or repricing in the same time period by $1.72 billion, representing a one-year cumulative gap to total assets ratio of 10.85%.
−Removed: The interest rate risk indicators and interest sensitivity gaps as of June 30, 2024 are within our internal policy guidelines and management considers that our current level of interest rate risk is reasonable.
+Added: The following table presents our interest sensitivity gap between interest-earning assets and interest-bearing liabilities at September 30, 2024 (dollars in thousands), based on the amounts of interest-earning assets and interest-bearing liabilities which are anticipated by us, based upon certain assumptions, to reprice or mature in each of the future periods shown.
+Added: At September 30, 2024, total interest-earning assets maturing or repricing within one year exceeded total interest-bearing liabilities maturing or repricing in the same time period by $2.03 billion, representing a one-year cumulative gap to total assets ratio of 12.54%.
+Added: The interest rate risk indicators and interest sensitivity gaps as of September 30, 2024 are within our internal policy guidelines and management considers that our current level of interest rate risk is reasonable.
Within 6 Months After 6 Months Within 1 Year After 1 Year Within 3 Years After 3 Years Within 5 Years After 5 Years Within 10 Years Over 10 Years Total
39 unchanged sentences
For the purpose of the gap analysis, these accounts have been assigned decay rates to reflect their longer effective maturities.
−Removed: If all of these accounts had been assumed to be short-term, the one-year cumulative gap of interest-sensitive assets would have been a negative $3.8 billion, or negative 23.91% of total assets, at June 30, 2024.
+Added: If all of these accounts had been assumed to be short-term, the one-year cumulative gap of interest-sensitive assets would have been a negative $3.7 billion, or negative 22.69% of total assets, at September 30, 2024.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.