5 unchanged sentences
Interest Rate Risk.
−Removed: Interest rate risk is the risk to earnings and value arising from changes in market interest rates.
−Removed: Interest rate risk arises from timing differences in the repricing and maturities of interest earning assets and interest
−Removed: bearing liabilities (reprice risk), changes in the expected maturities of assets and liabilities arising from embedded options, such as borrowers’ ability to prepay residential mortgage loans at any time and depositors’ ability to redeem certificates of deposit before maturity (option risk), changes in the shape of the yield curve where interest rates increase or decrease in a nonparallel fashion (yield curve risk), and changes in spread relationships between different yield curves, such as U.S.
+Added: Interest rate risk is the risk to earnings and values arising from changes in market interest rates.
+Added: Interest rate risk arises from timing differences in the repricing and maturities of interest earning assets and interest bearing liabilities (reprice risk), changes in the expected maturities of assets and liabilities arising from embedded options, such as borrowers’ ability to prepay residential mortgage loans at any time and depositors’ ability to redeem certificates of deposit before maturity (option risk), changes in the shape of the yield curve where interest rates increase or decrease in a nonparallel fashion (yield curve risk), and changes in spread relationships between different yield curves, such as U.S.
Treasuries and SOFR (basis risk).
1 unchanged sentence
ALCO establishes specific operating guidelines within the parameters of the Board of Directors’ policies.
−Removed: In general, we seek to minimize the impact of changing interest rates on net interest income and the economic values of assets and liabilities.
+Added: In general, we seek to minimize the impact of changing interest rates on net interest income and the economic
+Added: values of assets and liabilities.
Our ALCO meets quarterly to monitor the level of interest rate risk sensitivity to ensure compliance with the Board of Directors’ approved risk limits.
30 unchanged sentences
Additionally, the methodology does not fully consider the impact of annual and lifetime restrictions on rate changes for specific assets, such as adjustable-rate loans.
−Removed: Actual loan prepayments and early withdrawals from certificates may significantly differ from the assumptions made in the model when interest rates change.
+Added: Actual loan prepayments and early
+Added: withdrawals from certificates may significantly differ from the assumptions made in the model when interest rates change.
Lastly, the methodology does not evaluate the potential impact of higher rates on the ability of adjustable-rate loan borrowers to manage their debt.
1 unchanged sentence
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.