8 unchanged sentences
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, when relevant, to better understand interest rate risk and its effect on the Company’s performance.
−Removed: In previous quarters, the Company modeled alternate scenarios with deposit attrition as rates rose.
−Removed: June 30, 2023 March 31, 2023
+Added: September 30, 2023 June 30, 2023
(Dollars in millions)
−Removed: Assumed Deposit (Attrition)/Growth
−Removed: Assumed Deposit (Attrition)/Growth
300 basis points rising $ (20.6) (2.08) % $ (30.9) (3.09) %
4 unchanged sentences
300 basis points falling (27.0) (2.71) (34.3) (3.43)
−Removed: Under the simulation, in the three rising rate scenarios and three falling rate scenarios, interest rate risk is more negative in the rising rate scenarios and less negative in the falling rate scenarios than the previous quarter.
−Removed: This was primarily due to a decrease in core deposits, which are less rate sensitive, and an increase in wholesale funding with higher rates, which is more rate sensitive.
+Added: Under the simulation, in the three rising rate scenarios and three falling rate scenarios, interest rate risk is slightly improved compared to the scenarios in the previous quarter.
+Added: This was primarily due to a decrease in wholesale funding, which is more rate sensitive, partly offset by non-interest bearing demand deposit accounts transitioning to more rate sensitive deposit sweep accounts.
+Added: In addition, premium money market deposit account rates increased in the flat rate scenario to a point where the forecasted rates are less sensitive in rising rate scenarios and more sensitive in falling rate scenarios when compared to the previous quarter.
The comparison above provides insight into potential effects of changes in rates and deposit levels on net interest income.
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.