6 unchanged sentences
The Company monitors and measures its exposure to changes in interest rates in order to comply with applicable government regulations and risk policies established by the Board of Directors, and in order to preserve stockholder value.
−Removed: In monitoring interest rate risk, the Company analyzes assets and liabilities based on characteristics including size, coupon rate, repricing frequency, maturity date and likelihood of prepayment.
+Added: In monitoring interest rate risk, the Company analyzes assets and liabilities based on characteristics including size, coupon rate, repricing frequency, maturity date, likelihood of prepayment, and deposit behaviors.
The Company’s primary objective for its investment portfolio is to provide a source of liquidity for the Company.
12 unchanged sentences
The Company's interest rate risk analysis is designed to compare income and economic valuation simulations in market scenarios designed to alter the direction, magnitude and speed of interest rate changes, as well as the slope of the yield curve.
−Removed: This analysis may not represent all impacts driven by changes in the interest rate environment.
+Added: This analysis may not represent all impacts driven by changes in the interest rate environment, such as certain other card fee income and expense line items.
The Company does not currently engage in trading activities to control interest rate risk although it may do so in the future, if deemed necessary, to help manage interest rate risk.
12 unchanged sentences
It models basis point parallel shifts in market interest rates over the next one-year period.
−Removed: The following table shows the results of the scenarios as of December 31, 2022:
+Added: The following table shows the results of the scenarios as of March 31, 2023:
Net Sensitive Earnings at Risk
7 unchanged sentences
Percentage change from base -11.2 % -5.5 % — % 5.2 % 10.5 % 15.7 % 20.9 %
−Removed: The EAR analysis reported at December 31, 2022 , shows that total interest-sensitive income will change more rapidly than total interest-sensitive expense over the next year.
+Added: The EAR analysis reported at March 31, 2023 , shows that total interest-sensitive income will change more rapidly than total interest-sensitive expense over the next year.
IRR is a snapshot in time.
5 unchanged sentences
It models immediate basis point parallel shifts in market interest rates.
−Removed: The following table shows the results of the scenarios as December 31, 2022:
+Added: The following table shows the results of the scenarios as March 31, 2023:
Economic Value Sensitivity
3 unchanged sentences
Percentage change from base -9.0 % -3.5 % 2.5 % 4.4 % 6.1 % 8.0 %
−Removed: The EVE at risk reported at December 31, 2022 shows that the economic value of equity position is expected to benefit from rising interest rates due to the large amount of noninterest-bearing funding.
+Added: The EVE at risk reported at March 31, 2023 shows that the economic value of equity position is expected to benefit from rising interest rates due to the large amount of noninterest-bearing funding.
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.