10 unchanged sentences
The Board delegates responsibility for carrying out the policies to the ALCO, which meets each month.
−Removed: The committee is made up of the Company’s senior management as well as regional and line-of-business managers who oversee specific earning asset classes and various funding sources.
+Added: The committee is made up of the Company's senior management, corporate finance and risk personnel as well as regional and line-of-business managers who oversee specific earning asset classes and various funding sources.
As the Company does not believe it is possible to reliably predict future interest rate movements, it has maintained an appropriate process and set of measurement tools, which enables it to identify and quantify sources of interest rate risk in varying rate environments.
2 unchanged sentences
The base case scenario NII may increase or decrease significantly from quarter to quarter reflective of changes during the most recent quarter in the Company’s:
−Removed: (i) earning assets and liabilities balances, (ii) composition of earning assets and liabilities, (iii) earning asset yields, (iv) cost of funds and (v) model projections, as well as current market interest rates, including the slope of the yield curve and projected changes in the slope of the yield curve over the twelve month period.
+Added: (i) earning assets and liabilities balances, (ii) composition of earning assets and liabilities, (iii) earning asset yields, (iv) cost of funds and (v) various model assumptions including loan and time deposit spreads and core deposit betas, as well as current market interest rates, including the slope of the yield curve and projected changes in the slope of the yield curve over the twelve month period.
The direction of interest rates, the slope of the yield curve, the modeled changes in deposit balances and the cost of funds, including the Company’s deposit and funding betas, are not easily predicted in the current market environment, and therefore a wide variety of strategic balance sheet and treasury yield curve scenarios are modeled on an ongoing basis.
The following reflects the Company's estimated NII sensitivity as compared to the base case scenario over the subsequent twelve months based on:
−Removed: ● Balance sheet levels using September 30, 2023 as a starting point.
+Added: ● Balance sheet levels using March 31, 2024 as a starting point.
● The model assumes the Company’s average deposit balances will increase approximately 1.5% over the next twelve months.
2 unchanged sentences
● The model assumes no additional investment security purchases over the next twelve months.
−Removed: Investment cash flows will be used to pay down overnight borrowings and fund loan growth.
−Removed: ● In the rising rates scenarios, the prime rate, federal funds, and treasury curve rates are assumed to move up/down in a parallel manner by the amounts listed below over a 12-month period.
+Added: Investment cash inflows will be used to pay down overnight borrowings and fund loan growth.
+Added: ● In the rising/falling rates scenarios, the prime rate, federal funds, and treasury curve rates are assumed to move up/down in a parallel manner by the amounts listed below over a 12-month period.
Deposit balance and mix changes and the resultant deposit and funding betas are assumed to move in a manner that reflects the Company’s (i) long-term historical relationship between the Company’s deposit rate movement and changes in the federal funds rate, (ii) recent interest rate cycle experience, (iii) significant management judgment and (iv) other factors, including recent market behaviors of customers and competitors.
4 unchanged sentences
(decrease) in projected net interest
−Removed: income at September 30, 2023
−Removed: income at September 30, 2023
+Added: income at March 31, 2024
+Added: income at March 31, 2024
Interest rate scenario
12 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.