4 unchanged sentences
Treasury, agency, mortgage-backed and CMO securities issued by government agencies comprise 90.6% of the total portfolio and are currently rated AAA by Moody’s Investor Services and AA+ by Standard & Poor’s.
−Removed: Municipal and corporate bonds account for 11% of the total portfolio, of which, 98% carry a minimum rating of A-.
+Added: Municipals account for 9.2% of the total portfolio, of which, 94.2% carry a minimum rating of A-.
The remaining 0.2% of the portfolio is comprised of other investment grade securities.
6 unchanged sentences
The primary tool used by the Company in managing interest rate risk is income simulation.
−Removed: While a wide variety of strategic balance sheet and treasury yield curve scenarios are tested on an ongoing basis, the following reflects the Company's estimated net interest income sensitivity over the subsequent twelve months based on:
−Removed: ● Asset and liability levels using June 30, 2021 as a starting point.
+Added: While a wide variety of strategic balance sheet and treasury yield curve scenarios are tested on an ongoing basis, the following reflects the Company's estimated net interest income (“NII”) sensitivity over the subsequent twelve months based on:
+Added: ● Asset and liability levels using September 30, 2021 as a starting point.
+Added: ● Pending acquisitions are excluded from this model.
● The model assumes the Company’s average deposit balances will increase approximately 2.6% over the next twelve months.
1 unchanged sentence
● Cash flows on earning assets are based on contractual maturity, optionality, and amortization schedules along with applicable prepayments derived from internal historical data and external sources.
−Removed: The model assumes that all of the remaining PPP loans originated during 2020 will be forgiven and full repayment of the balances would occur over the next 6 months.
−Removed: The PPP loans originated in 2021 under the “Second Draw” are generally projected to be repaid over the next 14 months.
+Added: The model assumes that all of the remaining PPP loans originated during 2020 will be forgiven and repayment of the vast majority of the balances would occur over the next 12 months.
+Added: The majority of the PPP loans originated in 2021 under the “Second Draw” are generally projected to be repaid over the next 9 months.
All other loan balances, are generally projected to increase modestly throughout the forecast period.
−Removed: ● As of June 30, 2021 cash equivalents were just over $2.0 billion.
−Removed: The model assumes approximately 40% of the excess cash and cash flows from investment contractual maturities and prepayments estimated at $950 million are to be invested in long-term securities over the next six months.
+Added: ● As of September 30, 2021, cash equivalents were just under $2.1 billion.
+Added: The model assumes approximately 44% of the excess cash and cash flows from investment contractual maturities and prepayments, estimated at $1.1 billion, are to be invested in long-term securities over the next twelve months.
● In the rising rates scenarios, the prime rate and federal funds rates are assumed to move up over a 12-month period while moving the long end of the treasury curve to spreads over the three month treasury that are more consistent with historical norms based on the last three years (normalized yield curve).
4 unchanged sentences
in projected net interest
−Removed: income at June 30, 2021
+Added: income at September 30, 2021
Interest rate scenario
3 unchanged sentences
-100 basis points
−Removed: Projected net interest income (NII) over the 12-month forecast period increases in the rising rate environments largely due to higher rates earned on significant levels of cash equivalents, investment purchases, and assumed higher rates on new loans, including variable and adjustable rate loans.
+Added: Projected NII over the 12-month forecast period increases in the rising rate environments largely due to higher rates earned on significant levels of cash equivalents, investment purchases, and assumed higher rates on new loans, including variable and adjustable rate loans.
These increases are partially offset by anticipated increases in deposit and borrowing costs.
9 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.