8 unchanged sentences
From time to time, we enter into interest rate swap contracts to mitigate the changes in the fair value of selected investment securities and specified long-term fixed-rate loans and firm commitments to enter into long-term fixed-rate loans caused by changes in interest rates.
−Removed: Refer to Note 14 to the Consolidated Financial Statements in ITEM 8 of this report.
+Added: Refer to Note 15 in the Consolidated Financial Statements in ITEM 8 of this report.
ALCO and the Board of Directors review our exposure to interest rate risk at least quarterly.
4 unchanged sentences
As of December 31, 2025, interest rate risk was within the policy guidelines established by ALCO and the Board.
−Removed: One set of interest rates modeled and evaluated against flat interest rates and a static balance sheet is a series of immediate parallel shifts in the yield curve.
−Removed: Our most recent analysis of our interest rate sensitivity is provided in the following table as an example rather than an expectation of likely interest rate movements.
−Removed: Immediate Changes in Interest Rates (in basis points) Estimated Change in Net Interest Income in Year 1, as Percent of Net Interest Income
−Removed: Estimated Change in Net Interest Income in Year 2, as Percent of Net Interest Income
−Removed: up 400 (7.3) % 6.3 %
−Removed: up 300 (5.3) % 4.8 %
−Removed: up 200 (3.3) % 3.4 %
−Removed: up 100 (1.7) % 1.5 %
−Removed: down 100 1.0 % 0.9 %
−Removed: down 200 2.3 % 2.6 %
−Removed: down 300 2.2 % 0.9 %
−Removed: down 400 1.8 % 2.6 %
−Removed: Interest rate sensitivity is a function of the repricing characteristics of our assets and liabilities.
−Removed: 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 results are dependent on assumptions.
−Removed: For example, lower deposit growth than modeled may cause the Bank to increase its borrowing position, thereby increasing its liability sensitivity.
−Removed: Additionally, assets and liabilities may react differently to changes in market interest rates in terms of both timing and responsiveness to market rate movements.
−Removed: 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 70%, averaging 43%, to rates paid on non-maturity interest-bearing deposits in rising rate scenarios.
−Removed: Deposit betas of up to 60%, averaging 35%, are applied to rates paid on non-
−Removed: maturity interest-bearing deposits in falling rate scenarios with a two month lag assumed.
−Removed: However, deposit pricing is actively managed at the relationship level and closely monitored real-time to avoid unintended consequences.
−Removed: The actual rates and timing of prepayments on loans and investment securities could vary significantly from the assumptions applied in the various scenarios.
−Removed: Lastly, uneven changes in different tenors of U.S.
−Removed: Treasury rates that result in changes to the shape of the yield curve could produce different results from those presented in the table.
−Removed: Accordingly, the results presented should not be relied upon as indicative of actual results in the event of changing market interest rates.
+Added: Immediate Changes in Interest Rates (in basis points) Estimated Change in Net Interest Income in Year 1, as Percent of Net Interest Income Estimated Change in Net Interest Income in Year 2, as Percent of Net Interest Income
+Added: As of December 31, 2025, our interest rate risk position was within the policy guidelines established by ALCO and the Board based on an assessment that was completed before the reclassification of certain reciprocal network deposits from noninterest-bearing to interest-bearing.
+Added: The results from an updated assessment, which will include the reclassification, are expected to be released in late April 2026 as part of our first quarter earnings release materials and preliminary calculations suggest that we should remain in compliance with policy guidelines.
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.