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: September 30, 2023 June 30, 2023
+Added: March 31, 2024 December 31, 2023
(Dollars in millions)
5 unchanged sentences
300 basis points falling (37.9) (3.73) (32.9) (3.24)
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: The comparison above provides insight into potential effects of changes in rates and deposit levels on net interest income.
+Added: Under the simulation, in the three rising rate scenarios, interest rate risk is mostly unchanged from the scenarios in the previous quarter and in the three falling rate scenarios, interest rate risk is more negative when compared to the scenarios in the previous quarter.
+Added: This change was primarily due to a more conservative approach in modeling premium money market deposit accounts in the falling interest rate scenarios.
+Added: The comparison above provides insight into potential effects of changes in rates on net interest income.
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.