5 unchanged sentences
We have historically managed our sensitivity position within our established guidelines.
−Removed: Fluctuations in interest rates will ultimately impact both the level of income and expense recorded on most of our assets and liabilities, and the market value of all interest-earning assets and
−Removed: interest-bearing liabilities, other than those which have a short term to maturity.
+Added: Fluctuations in interest rates will ultimately impact both the level of income and expense recorded on most of our assets and liabilities, and the market value of all interest-earning assets
+Added: and interest-bearing liabilities, other than those which have a short term to maturity.
Interest rate risk is the potential of economic losses due to future interest rate changes.
3 unchanged sentences
We manage our exposure to interest rates by structuring our balance sheet in the ordinary course of business.
−Removed: We do not enter into instruments such as leveraged derivatives, financial options or
−Removed: financial future contracts to mitigate interest rate risk from specific transactions.
+Added: We do not enter into instruments such as leveraged derivatives, financial
+Added: options or financial future contracts to mitigate interest rate risk from specific transactions.
Based upon the nature of our operations, we are not subject to foreign exchange or commodity price risk.
7 unchanged sentences
book and market values of assets and liabilities, commitments to originate loans and the maturities of investments and borrowings.
−Removed: Additionally, the ALCO Committee reviews liquidity, cash flow flexibility, maturities of deposits and consumer
−Removed: and commercial deposit activity.
−Removed: Management employs methodologies to manage interest rate risk, which include an analysis of relationships between interest-earning assets and interest-bearing liabilities and an interest rate shock simulation
−Removed: We use interest rate risk simulation models and shock analyses to test the interest rate sensitivity of net interest income and fair value of equity, and the impact of changes in interest rates on
−Removed: other financial metrics.
+Added: Additionally, the ALCO Committee reviews liquidity, cash flow flexibility, maturities of deposits and consumer and
+Added: commercial deposit activity.
+Added: Management employs methodologies to manage interest rate risk, which include an analysis of relationships between interest-earning assets and interest-bearing liabilities and an interest rate shock simulation model.
+Added: We use interest rate risk simulation models and shock analyses to test the interest rate sensitivity of net interest income and fair value of equity, and the impact of changes in interest
+Added: rates on other financial metrics.
Contractual maturities and re-pricing opportunities of loans are incorporated in the model.
The average lives of non-maturity deposit accounts are based on decay assumptions and are incorporated into the model.
−Removed: utilize third-party experts to periodically evaluate the performance of our non-maturity deposit accounts to develop the decay assumptions.
+Added: We utilize third-party experts to periodically evaluate the performance of our non-maturity deposit accounts to develop the decay assumptions.
All of the assumptions used in our analyses are inherently uncertain and, as a result, the model cannot
precisely measure future net interest income or precisely predict the impact of fluctuations in market interest rates on net interest income.
−Removed: Actual results will differ from the model’s simulated results due to timing, magnitude and frequency
−Removed: of interest rate changes as well as changes in market conditions and the application and timing of various management strategies.
+Added: Actual results will differ from the model’s simulated results due to timing, magnitude and frequency of
+Added: interest rate changes as well as changes in market conditions and the application and timing of various management strategies.
On a quarterly basis, we run various simulation models including a static balance sheet and dynamic growth balance sheet.
−Removed: These models test the impact on net interest income and fair value of
−Removed: equity from changes in market interest rates under various scenarios.
+Added: These models test the impact on net interest income and fair value
+Added: of equity from changes in market interest rates under various scenarios.
Under the static model and dynamic growth models, rates are shocked instantaneously and ramped rates change over a 12-month and 24-month horizon based upon parallel and
9 unchanged sentences
in Net Interest
−Removed: Change in Fair
−Removed: Value of Equity
Percent Change
+Added: in Fair Value of
+Added: Percent Change
in Net Interest
−Removed: Change in Fair
−Removed: Value of Equity
+Added: Percent Change
+Added: in Fair Value of
The results are primarily due to behavior of demand, money market and savings deposits during such rate fluctuations.
−Removed: We have found that, historically, interest rates on these deposits change more
−Removed: slowly than changes in the discount and fed funds rates.
+Added: We have found that, historically, interest rates on these deposits
+Added: change more slowly than changes in the discount and fed funds rates.
This assumption is incorporated into the simulation model and is generally not fully reflected in a gap analysis.
−Removed: The assumptions incorporated into the model are inherently uncertain and,
−Removed: as a result, the model cannot precisely measure future net interest income or precisely predict the impact of fluctuations in market interest rates on net interest income.
−Removed: Actual results will differ from the model’s simulated results due to
−Removed: timing, magnitude and frequency of interest rate changes as well as changes in market conditions and the application and timing of various strategies.
+Added: The assumptions incorporated into the model are inherently
+Added: uncertain and, as a result, the model cannot precisely measure future net interest income or precisely predict the impact of fluctuations in market interest rates on net interest income.
+Added: Actual results will differ from the model’s simulated
+Added: results due to timing, magnitude and frequency of interest rate changes as well as changes in market conditions and the application and timing of various strategies.
Impact of Inflation
Our consolidated financial statements and related notes included elsewhere in this Form 10-Q have been prepared in accordance with GAAP.
−Removed: These require the measurement of financial position and operating results
−Removed: in terms of historical dollars, without considering changes in the relative value of money over time due to inflation or recession.
+Added: These require the measurement of financial position and operating results in
+Added: terms of historical dollars, without considering changes in the relative value of money over time due to inflation or recession.
Unlike many industrial companies, substantially all of our assets and liabilities are monetary in nature.
4 unchanged sentences
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.