15 unchanged sentences
(ii) new business loan rates that are based on recent new business origination experience;
−Removed: and (iii) deposit pricing assumptions for non-maturity deposits reflecting the Bank’s limited history, management judgment and core deposit studies.
+Added: and (iii) deposit pricing assumptions for non-maturity deposits reflecting the Bank’s history, management judgment and core deposit studies.
Combined, these assumptions can be inherently uncertain, and as a result, actual results may differ from simulation forecasts due to the timing, magnitude and frequency of interest rate changes, future business conditions, as well as unanticipated changes in management strategies.
6 unchanged sentences
12% for a 200 basis point shift;
−Removed: and 18% for a 300 basis point
+Added: and 18% for a 300 basis point shift.
Per Company policy, the Bank should not be outside these limits for twelve consecutive months unless the Bank's forecasted capital ratios are considered to be "well capitalized".
28 unchanged sentences
The base case scenario assumes that future interest rates remain unchanged.
−Removed: Internal policy for economic value of equity at risk simulations should not decline more than 10% for a 100 basis point shift;
−Removed: 20% for a 200 basis point shift;
−Removed: and 30% for a 300 basis point shift.
−Removed: Per Company policy, the Bank should not be outside these limits unless the Banks forecasted capital ratios are considered to be "well capitalized".
The following table sets forth the estimated percentage change in our economic value of equity at risk, assuming various shifts in interest rates:
9 unchanged sentences
While ALCO reviews and updates simulation assumptions and also periodically back-tests the simulation results to ensure that the assumptions are reasonable and current, income simulation may not always prove to be an accurate indicator of interest rate risk or future net interest margin.
−Removed: Over time, the repricing, maturity and prepayment characteristics of financial instruments
−Removed: and the composition of our balance sheet may change to a different degree than estimated.
+Added: Over time, the repricing, maturity and prepayment characteristics of financial instruments and the composition of our balance sheet may change to a different degree than estimated.
ALCO recognizes that deposit balances could shift into higher yielding alternatives as market rates change.
1 unchanged sentence
In the minus 100 scenario above, the change in EVE of (21.4)% is outside of policy parameters;
−Removed: However, because the Bank continues to be well-capitalized, the downward rate scenarios is extremely unlikely in the current economic and interest rate environment.
−Removed: The result of this simulation was discussed with the ALCO committee and the Company has decided to not take any further action at this time.
+Added: however, the Bank continues to be well-capitalized.
+Added: The result of this simulation was discussed with the ALCO and the Company has decided to not take any further action at this time as this scenario is deemed unlikely in the current interest rate environment.
It should be noted that the static balance sheet assumption does not necessarily reflect our expectation for future balance sheet growth, which is a function of the business environment and customer behavior.
12 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.