14 unchanged sentences
Governing policies are subject to review by regulators and are updated to incorporate their observations and adapt to changes in idiosyncratic and systemic risks.
−Removed: As of June 30, 2024,
+Added: As of September 30, 2024,
interest rate risk was within policy guidelines established by ALCO and the Board.
8 unchanged sentences
down 200 (2.2) % (1.5) %
+Added: (2.5) % (1.2) %
+Added: (2.3) % (1.3) %
Interest rate sensitivity is a function of the repricing characteristics of our assets and liabilities.
The Bank runs a combination of scenarios and sensitivities in its attempt to capture the range of interest rate risk including the simulations mentioned above.
−Removed: As with any simulation model or other method of measuring interest rate risk, limitations are inherent in the process and dependent on assumptions.
+Added: As with any simulation model or other method of measuring interest rate risk, limitations are inherent in the process and results are dependent on assumptions.
For example, lower deposit growth than modeled may cause the Bank to increase its borrowing position, thereby increasing its liability sensitivity.
1 unchanged sentence
Important deposit modeling assumptions include the speed of deposit run-off and the amount by which interest-bearing deposit rates increase or decrease when market interest rates change, otherwise known as the deposit beta.
−Removed: The above tables reflect deposit betas of up to 68%, averaging 41%, to rates paid on non-maturity interest-bearing deposits in rising rate scenarios and deposit betas of up to 60%, averaging 34%, to rates paid on non-maturity interest-bearing deposits in falling rate scenarios.
+Added: The above tables reflect deposit betas of up to 70%, averaging 43%, for rates paid on non-maturity interest-bearing deposits in rising rate scenarios.
+Added: Deposit betas of up to 60%, averaging 35%, are applied to rates paid on non-maturity interest-bearing deposits in falling rate scenarios with a three month lag assumed.
+Added: However, deposit pricing is actively managed at the relationship level and closely monitored real-time to avoid unintended consequences.
The actual rates and timing of prepayments on loans and investment securities could vary significantly from the assu mptions applied in the various scenarios.
+Added: During the third quarter the Bank's asset sensitivity increased due to deposit inflows, which increased cash balances as well as the balance sheet repositioning activities initiated in the second quarter.
+Added: In order to slightly reduce this asset sensitivity, subsequent to quarter end on November 4, 2024 the Bank terminated its interest rate swaps tied to available-for-sale securities.
Lastly, uneven changes in different tenors of U.S.
Treasury rates that result in changes to the shape of the yield curve could produce different results from those presented in the table.
+Added: While not presented here, interest rate risk scenarios include yield curve steepening, flattening and twists.
Accordingly, the results presented should not be relied upon as indicative of actual results in the event of changing market interest rates.
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.