6 unchanged sentences
IMPACT ON NET INTEREST INCOME UNDER A STATIC BALANCE SHEET, PARALLEL INTEREST RATE SHOCK
−Removed: Earnings at Risk
+Added: Earnings at Risk -200 bps -100 bps Flat +100 bps +200 bps +300 bps
December 31, 2020 (2.9) % (1.8) % 0.0 % 2.6 % 6.9 % 11.6 %
1 unchanged sentence
This measures the difference between the economic value of our assets and the economic value of our liabilities, which is a proxy for our liquidation value.
−Removed: While this provides some value as a risk measurement tool, management believes EAR is more appropriate in accordance with the going concern principle.
+Added: While this provides some value as a risk measurement tool, management believes EAR is more appropriate to the application of the going concern principle.
The following table illustrates the results of our EVE analysis as of December 31, 2020.
ECONOMIC VALUE OF EQUITY ANALYSIS UNDER A STATIC BALANCE SHEET, PARALLEL INTEREST RATE SHOCK
−Removed: Economic Value of Equity
+Added: Economic Value of Equity -200 bps -100 bps Flat +100 bps +200 bps +300 bps
December 31, 2020 (12.8) % (6.0) % 0.0 % 8.8 % 15.5 % 21.4 %
1 unchanged sentence
A fundamental risk in banking is exposure to market risk, since a bank’s net income is largely dependent on net interest income.
−Removed: The Bank’s ALCO formulates and monitors t he management of interest rate risk through policies and guidelines established by it and the full Board of Directors and through review of detailed reports discussed quarterly.
+Added: The Bank’s ALCO formulates and monitors the management of interest rate risk through policies and guidelines established by it and the full Board of Directors and through review of detailed reports discussed quarterly.
In its consideration of risk limits, the ALCO considers the impact on earnings and capital, the level and direction of interest rates, liquidity, local economic conditions, outside threats and other factors.
9 unchanged sentences
We do not own any trading assets.
−Removed: The committee meets regularly to review, among other things, the sensitivity of assets and liabilities to interest rate changes, the book and market values of assets and liabilities, unrealized gains and losses, purchase and sale activities, commitments to originate loans and the maturities of investments and borrowings.
+Added: The ALCO committee meets regularly to review, among other things, the sensitivity of assets and liabilities to interest rate changes, the book and market values of assets and liabilities, unrealized gains and losses, purchase and sale activities, commitments to originate loans and the maturities of investments and borrowings.
Additionally, the committee reviews liquidity, cash flow flexibility, maturities of deposits and consumer and commercial deposit activity.
3 unchanged sentences
INTEREST SENSITIVITY GAP
−Removed: December 31, 2019
−Removed: Within One Month
−Removed: After One Month Through Three Months
−Removed: After Three Through Twelve Months
−Removed: Within One Year
−Removed: Greater Than One Year or Non-Sensitive
+Added: December 31, 2020 Within One Month After One Month Through Three Months After Three Through Twelve Months Within One Year Greater Than One Year or Non-Sensitive Total
(in thousands)
Interest earning assets
+Added: $ 515,414 $ 317,129 $ 272,577 $ 1,105,120 $ 520,620 $ 1,625,740
+Added: 4,083 — 2,000 6,083 93,704 99,787
Interest bearing deposits at other financial institutions
+Added: 126,081 — — 126,081 — 126,081
Federal funds sold
+Added: 2,373 — — 2,373 — 2,373
Total earning assets
+Added: $ 647,951 $ 317,129 $ 274,577 $ 1,239,657 $ 614,324 $ 1,853,981
Interest bearing liabilities
Interest bearing deposits
+Added: $ 709,002 $ — $ — $ 709,002 $ — $ 709,002
Time deposits
+Added: 7,577 48,747 181,309 237,633 96,934 334,567
Total interest bearing deposits
+Added: 716,579 48,747 181,309 946,635 96,934 1,043,569
FHLB Advances
+Added: — — — 22,000 22,000
Other borrowed funds
+Added: — — — — 14,016 14,016
Total interest bearing liabilities
+Added: $ 716,579 $ 48,747 $ 181,309 $ 946,635 $ 132,950 $ 1,079,585
+Added: $ (68,628) $ 268,382 $ 93,268 $ 293,022 $ 481,374 $ 774,396
Cumulative gap $ (68,628) $ 199,754 $ 293,022 $ 293,022 $ 774,396
1 unchanged sentence
(3.70) % 10.77 % 15.81 % 15.81 % 41.77 %
+Added: _______________
(1) Includes loans held for sale.
8 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.