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: June 30, 2024 March 31, 2024
+Added: September 30, 2024 June 30, 2024
(Dollars in millions)
5 unchanged sentences
300 basis points falling (62.0) (5.83) (44.6) (4.16)
−Removed: Under the simulation, in the three rising rate scenarios, interest rate risk is improved compared to 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.
−Removed: This change was primarily due to higher interest earning cash balances at the Federal Reserve coupled with the completion of the planned repositioning of a portion of the investment securities portfolio.
+Added: Under the simulation, in the three rising rate scenarios and three falling rate scenarios, interest rate risk is more asset sensitive when compared to the scenarios in the previous quarter.
+Added: This change was primarily due to actions taken by the Federal Reserve to reduce short-term interest rates by 50 basis points.
+Added: As short-term rates fall, deposit rates become less sensitive which resulted in larger declines in interest income in the falling rate scenarios and growth in interest income in the rising rate scenarios.
The comparison above provides insight into potential effects of changes in rates 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.