5 unchanged sentences
The tables below show the effects of gradual shifts in interest rates over a twelve month period on the Company’s net interest income versus the Company's net interest income in a flat rate scenario.
−Removed: Simulation A presents three rising rate scenarios and one falling rate scenario, and in each scenario, rates are assumed to change evenly over 12 months.
+Added: Simulation A presents three rising rate scenarios and three falling rate scenarios, and in each scenario, rates are assumed to change evenly over 12 months.
In these scenarios, the balance sheet remains flat.
3 unchanged sentences
The Company utilizes these simulations both for monitoring interest rate risk and for liquidity planning purposes.
−Removed: While the future effects of rising rates on deposit balances cannot be known, the Company maintains a practice of running multiple rate scenarios to better understand interest rate risk and its effect on the Company’s performance.
−Removed: Simulation A June 30, 2022 March 31, 2022
+Added: While the future effects of rising and falling rates on deposit balances cannot be known, the Company maintains a practice of running multiple rate scenarios to better understand interest rate risk and its effect on the Company’s performance.
+Added: Simulation A September 30, 2022 June 30, 2022
(Dollars in millions)
5 unchanged sentences
100 basis points falling (28.5) (2.80) — (35.3) (3.83) —
−Removed: Simulation B June 30, 2022 March 31, 2022
+Added: 200 basis points falling (62.5) (6.14) — — — —
+Added: 300 basis points falling (101.1) (9.94) — — — —
+Added: Simulation B September 30, 2022 June 30, 2022
(Dollars in millions)
5 unchanged sentences
100 basis points falling (6.0) (.62) 403.2 (2.7) (.31) 1,086.4
−Removed: Under Simulation A, in the three rising rate scenarios and 100 basis points falling rate scenario, interest rate risk is less asset sensitive than the previous quarter, primarily due to an increase in the Federal funds rate, which impacts surge deposit runoff and increases non-maturity deposit rates.
+Added: 200 basis points falling (26.5) (2.72) 849.4 — — —
+Added: 300 basis points falling (58.7) (6.02) 1,446.4 — — —
+Added: Under Simulation A, in the three rising rate scenarios and three falling rate scenarios, interest rate risk is less asset sensitive than the previous quarter, primarily due to an increase in the Federal funds rate, which increases non-maturity deposit rates.
Deposit attrition was removed from the simulation in both the current and previous quarters.
In Simulation B, the assumed levels of deposit attrition were modeled to capture the results of a shrinking balance sheet.
−Removed: Under this Simulation, in the three rising rate scenarios and the 100 basis points falling rate scenario, interest rate risk is liability sensitive, while in the previous quarter it was asset sensitive.
+Added: Under this Simulation, in the three rising rate scenarios and three falling rate scenarios, interest rate risk is more liability sensitive than in the previous quarter.
This was primarily due to an increase in the Federal funds rate, which impacts surge deposit runoff and puts upward pressure on non-maturity deposit rates.
1 unchanged sentence
The comparisons above provide insight into potential effects of changes in rates and deposit levels on net interest income.
−Removed: The Company believes that its approach to interest rate risk has appropriately
−Removed: considered its susceptibility to both rising and falling rates and has adopted strategies which minimize the impact of interest rate risk.
+Added: The Company believes that its approach to interest rate risk has appropriately considered its susceptibility to both rising and falling rates and has adopted strategies which minimize the impact of interest rate risk.
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.