11 unchanged sentences
Movements in market interest rates significantly influence the spread between the interest earned on our interest-earning assets and the interest paid on our interest-bearing liabilities.
−Removed: Our internal interest rate risk analysis
−Removed: calculates the sensitivity of our projected net interest income over a one year period utilizing a static balance sheet assumption through which incoming and outgoing asset and liability cash flows are reinvested into similar instruments.
+Added: Our internal interest rate risk analysis calculates the sensitivity of our projected net interest income over a one year period utilizing a static balance sheet assumption through which incoming and outgoing asset and liability cash flows are reinvested into similar instruments.
Product pricing and earning asset prepayment speeds are adjusted for each rate scenario.
1 unchanged sentence
EVE represents the present value of the expected cash flows from our assets less the present value of the expected cash flows arising from our liabilities.
−Removed: EVE attempts to quantify our economic value using a discounted cash flow methodology while the EVE ratio reflects that value as a form of capital ratio.
+Added: EVE attempts to quantify our economic value using a discounted
+Added: cash flow methodology while the EVE ratio reflects that value as a form of capital ratio.
The degree to which the EVE ratio changes for any hypothetical interest rate scenario from its base case measurement is a reflection of an institution’s sensitivity to interest rate risk.
1 unchanged sentence
The model then measures changes throughout a series of interest rate scenarios representing immediate and permanent, parallel shifts in the yield curve up and down 100, 200, 300 and 400 basis points with additional scenarios modeled where appropriate.
−Removed: The model requires that interest rates remain positive for all points along the yield curve for each rate scenario which may preclude the modeling of certain falling rate scenarios during periods of lower market interest rates such as that experienced in the current rate environment at September 30, 2022.
−Removed: The table below sets forth, as of September 30, 2022, the estimated changes in EVE and net interest income at risk that would result from the designated instantaneous changes in market interest rates.
+Added: The model requires that interest rates remain positive for all points along the yield curve for each rate scenario which may preclude the modeling of certain falling rate scenarios.
+Added: The table below sets forth, as of March 31, 2023, the estimated changes in EVE and net interest income at risk that would result from the designated instantaneous changes in market interest rates.
Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions, including relative levels of market interest rates, loan prepayments and deposit decay, and should not be relied upon as indicative of actual results.
6 unchanged sentences
+200 186,233 (25,808) (12.2) 14.48 (106) 50,292 (50) (0.1)
+Added: +100 199,734 (12,307) (5.8) 15.08 (46) 50,341 (1) —
Flat 212,041 — — 15.54 — 50,342 — —
(100) 221,111 9,070 4.3 15.74 20 49,254 (1,088) (2.2)
+Added: (200) 225,305 13,264 6.3 15.59 5 47,547 (2,795) (5.6)
+Added: (300) 225,532 13,491 6.4 15.19 (35) 45,629 (4,713) (9.4)
+Added: (400) 217,187 5,146 2.4 14.29 (125) 43,642 (6,700) (13.3)
Certain shortcomings are inherent in the methodology used in the above interest rate risk measurement.
5 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.