3 unchanged sentences
The asset/liability management discipline as applied by the Company seeks to limit the volatility, to the extent possible, that can result from changes in market interest rates.
−Removed: This is accomplished by limiting the concentration of maturities of fixed rate investments, loans, and deposits;
+Added: This is accomplished by limiting the concentration of maturities of fixed rate
+Added: investments, loans, and deposits;
matching fixed rate assets and liabilities to the extent possible;
1 unchanged sentence
However, the Company's asset/liability position often differs from other financial holding companies with positive cumulative "gaps." This asset sensitive position is caused primarily by the operations of the Company, which generate large balances of accounts and drafts payable.
−Removed: These balances, which are noninterest-bearing, can cause the Company to become susceptible to changes in interest rates, with a decreasing net interest margin in periods of declining interest rates and an increasing net interest margin in periods of rising interest rates, like the Company experienced in 2024 before the fourth quarter cumulative 100 basis point decline.
+Added: These balances, which are noninterest-bearing, can cause the Company to become susceptible to changes in interest rates, with a decreasing net interest margin in periods of declining interest rates and an increasing net interest margin in periods of rising interest rates.
The Company’s ALCO measures the Company's interest rate risk sensitivity on a quarterly basis to monitor and manage the variability of earnings in various interest rate environments.
8 unchanged sentences
Management has set policy limits specifying acceptable levels of interest rate risk given multiple simulated rate movements.
−Removed: These simulations are more informative than gap reports because they are able to capture more of the dynamics within the balance sheet, such as basis risk and
−Removed: embedded options risk.
+Added: These simulations are more informative than gap reports because they are able to capture more of the dynamics within the balance sheet, such as basis risk and embedded options risk.
A table containing simulation results as of December 31, 2025, from an immediate and sustained parallel change in interest rates in three varying scenarios is shown below.
12 unchanged sentences
-100 basis points (2.5)
+Added: -200 basis points (6.1)
+Added: -300 basis points (10.6)%
The Company is generally asset sensitive as average interest-earning assets of $2.15 billion for 2025 greatly exceeded average interest-bearing liabilities of $617.3 million.
1 unchanged sentence
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.