2 unchanged sentences
Interest rate risk is a type of market risk to earnings and capital arising from movements in interest rates.
−Removed: Interest rate risk is the most significant market risk affecting First Busey as other types of market risk, such as foreign currency exchange rate risk and commodity price risk, have minimal impact or do not arise in the normal course of First Busey’s business activities.
−Removed: First Busey has an asset-liability committee, whose policy is to meet at least quarterly, to review current market conditions and to structure the Consolidated Balance Sheets to optimize stability in net interest income in consideration of projected future changes in interest rates.
+Added: Interest rate risk is the most significant market risk affecting Busey as other types of market risk, such as foreign currency exchange rate risk and commodity price risk, have minimal impact or do not arise in the normal course of Busey’s business activities.
+Added: Busey has an asset-liability committee, whose policy is to meet at least quarterly, to review current market conditions and to structure the Consolidated Balance Sheets to optimize stability in net interest income in consideration of projected future changes in interest rates.
As interest rate changes do not impact all categories of assets and liabilities equally or simultaneously, the asset-liability committee primarily relies on balance sheet and income simulation analysis to determine the potential impact of changes in market interest rates on net interest income.
In these standard simulation models, the balance sheet is projected over a one-year and a two-year time horizon and net interest income is calculated under current market rates and assuming permanent instantaneous shifts of +/-100, +/-200, +/-300, and +/-400 basis points.
−Removed: As of December 31, 2021, a downward adjustment in federal fund rates was not meaningful due to the low interest rate environment at that time.
The model assumes immediate and sustained shifts in the federal funds rate and other market rate indices and corresponding shifts in other non-market rate indices based on their historical changes relative to changes in the federal funds rate and other market indices.
2 unchanged sentences
and prepayment speeds on loans are projected for both declining and rising rate environments.
−Removed: The interest rate risk of First Busey as a result of immediate and sustained changes in interest rates, expressed as a change in net interest income as a percentage of the net interest income calculated in the constant base model, was as follows:
+Added: Busey’s interest rate risk resulting from immediate and sustained changes in interest rates, expressed as a change in net interest income as a percentage of the net interest income calculated in the constant base model, was as follows:
+Added: Basis Point Changes Year-Two:
Basis Point Changes
+Added: December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
+400 7.38 % 12.27 % 8.55 % 16.02 %
−Removed: December 31, 2022 (21.24) % (14.74) % (8.08) % (3.95)% 3.05% 6.11% 9.18% 12.27%
−Removed: December 31, 2021 NM NM NM NM 8.77% 17.19% 25.64% 33.87%
−Removed: Basis Point Changes
+300 5.49 % 9.18 % 6.34 % 11.94 %
−Removed: December 31, 2022 (27.82) % (19.56) % (10.76) % (5.27)% 3.94% 7.91% 11.94% 16.02%
−Removed: December 31, 2021 NM NM NM NM 9.51% 18.22% 26.84% 35.35%
+Added: +200 3.64 % 6.11 % 4.20 % 7.91 %
+Added: +100 1.81 % 3.05 % 2.10 % 3.94 %
+Added: - 100 (1.91) % (3.95) % (2.98) % (5.27) %
+Added: -200 (3.86) % (8.08) % (6.12) % (10.76) %
+Added: -300 (5.60) % (14.74) % (9.17) % (19.56) %
+Added: -400 (6.91) % (21.24) % (11.36) % (27.82) %
Interest rate risk is monitored and managed within approved policy limits and any temporary exceptions to policy in periods of rapid rate movement are approved and documented.
1 unchanged sentence
Actual results would likely differ from simulated results due to the timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies.
+Added: First Busey Corporation | 2023 — 90
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.