56 unchanged sentences
liabilities as a percent of total Bank assets at:
+Added: March 31, 2025 (11.4) % (17.6) % (9.2) % 6.0 %
December 31, 2024 (16.6)
1 unchanged sentence
Cumulative one-year gap - interest rates +200 bps at:
+Added: March 31, 2025 (13.7)
December 31, 2024 (18.4)
1 unchanged sentence
Cumulative one-year gap - interest rates -200 bps at:
+Added: March 31, 2025 (7.1)
December 31, 2024 (12.3)
4 unchanged sentences
(2) MBS reflect projected prepayments at amortized cost.
−Removed: All other securities are presented based on contractual maturities, term to call dates or pre-refunding dates as of December 31, 2024, at amortized cost.
+Added: All other securities are presented based on contractual maturities, term to call dates or pre-refunding dates as of March 31, 2025, at amortized cost.
(3) Although the Bank's checking, savings, and money market accounts are subject to immediate withdrawal, management considers a substantial amount of these accounts to be core deposits having significantly longer effective maturities.
4 unchanged sentences
The repricing of these liabilities is projected to occur at the maturity date of each interest rate swap.
−Removed: At December 31, 2024, the Bank's gap between the amount of interest-earning assets and interest-bearing liabilities projected to reprice within one year was $(1.58) billion, or (16.6)% of total assets, compared to $(1.51) billion, or (15.8)% of total assets, at September 30, 2024.
−Removed: The change in the one-year gap amount was due to an increase in the amount of projected liability cash flows coming due in one year, as of December 31, 2024, partially offset by an increase in the amount of asset cash flows coming due during the same time period, as compared to September 30, 2024.
−Removed: The increase in liability cash flows was due primarily to a net increase in non-maturity deposits between periods.
−Removed: The increase in projected asset cash flows was due primarily to an increase in the balance of adjustable-rate loans, partially offset by a decrease in the balance of cash and a decrease in the projected amount of fixed-rate mortgage-related asset cash flows due to a decrease in projected prepayment speeds from September 30, 2024, as a result of an increase in intermediate and long-term interest and mortgage rates.
+Added: At March 31, 2025, the Bank's gap between the amount of interest-earning assets and interest-bearing liabilities projected to reprice within one year was $(1.11) billion, or (11.4)% of total assets, compared to $(1.51) billion, or (15.8)% of total assets, at September 30, 2024.
+Added: The change in the one-year gap amount was due primarily to an increase in the amount of projected asset cash flows coming due in one year, as of March 31, 2025, compared to September 30, 2024.
+Added: The increase in projected asset cash flows was due primarily to an increase in the balances of adjustable-rate loans, and cash between the two periods.
+Added: The increase in the balance of adjustable-rate loans was due primarily to the remix of the loan portfolio from one- to four-family loans to commercial loans, which tend to have adjustable rate features.
+Added: The increase in projected asset cash flows was partially offset by a decrease in the amount of fixed-rate
+Added: mortgage-related asset cash flows as a result of a general decrease in balances as well as to a decrease in projected prepayment speeds, from September 30, 2024, as a result of an increase in intermediate and long-term interest and mortgage rates.
The amount of interest-bearing liabilities expected to reprice in a given period typically is not significantly impacted by changes in interest rates because the Bank's borrowings and certificate of deposit portfolios have contractual maturities and generally cannot be terminated early without a prepayment penalty.
−Removed: If interest rates were to increase 200 basis points, as of December 31, 2024, the Bank's one-year gap would have been projected to be $(1.75) billion, or (18.4)% of total assets.
−Removed: If interest rates were to decrease 200 basis points, as of December 31, 2024, the Bank's one-year gap would have been projected to be $(1.17) billion, or (12.3)% of total assets.
+Added: If interest rates were to increase 200 basis points, as of March 31, 2025, the Bank's one-year gap would have been projected to be $(1.33) billion, or (13.6)% of total assets.
+Added: If interest rates were to decrease 200 basis points, as of March 31, 2025, the Bank's one-year gap would have been projected to be $(686.7) million, or (7.1)% of total assets.
The changes in the gap amounts compared to when there is no change in rates was due to changes in the anticipated net cash flows primarily as a result of projected prepayments on mortgage-related assets in each rate environment.
10 unchanged sentences
Change Net Interest Income At
−Removed: (in Basis Points) December 31, 2024 September 30, 2024
+Added: (in Basis Points) March 31, 2025 September 30, 2024
in Interest Rates (1)
9 unchanged sentences
(1) Assumes an instantaneous, parallel, and permanent change in interest rates at all maturities.
−Removed: In general, increases/(decreases) in the Bank's net interest income projections under the various interest rate scenarios presented are due to the degree in which cash flows are realized and the rates projected to be earned on funds received through loan and securities repayments, in each scenario, are greater/(less) than the rates projected to be paid on deposits and borrowings in the next 12 months.
−Removed: The net interest income projection was higher in the base case scenario at December 31, 2024 compared to September 30, 2024, due primarily to a steepening of the yield curve between the two periods.
−Removed: The benchmark U.S.
−Removed: Treasury yield curve dis-inverted during the current quarter and was largely positively sloped as of December 31, 2024.
−Removed: As a result, interest income projections associated with the Bank's interest-earning asset cashflows, primarily the loan portfolio, increased by more than increases in interest expense projections on its interest-bearing liability cashflows.
+Added: In general, increases/(decreases) in the Bank's net interest income projections under the various interest rate scenarios presented are due to the degree in which cash flows are realized and the rates projected to be earned on funds received through loan and securities repayments, in each scenario, are greater/(less) than the rates projected to be paid on deposits and borrowings over the next 12 months.
+Added: The net interest income projection was higher in the base case scenario at March 31, 2025 compared to September 30, 2024, due primarily to the steepening of the yield curve between the two periods.
+Added: As a result, interest income projections associated with the Bank's interest-earning asset cash flows, primarily the loan portfolio, increased by more than the increase in interest expense projections on the Bank's interest-bearing liability cash flows.
+Added: Additionally, the Bank held a higher balance of cash and securities at March 31, 2025, compared to September 30, 2024, which contributed to the increase in projected net interest income, partially offset by an increase in deposits between the two periods.
Change in MVPE.
6 unchanged sentences
Change Market Value of Portfolio Equity At
−Removed: (in Basis Points) December 31, 2024 September 30, 2024
+Added: (in Basis Points) March 31, 2025 September 30, 2024
in Interest Rates (1)
9 unchanged sentences
(1) Assumes an instantaneous, parallel, and permanent change in interest rates at all maturities.
−Removed: The Bank's MVPE decreased from $1.10 billion at September 30, 2024 to $1.00 billion at December 31, 2024.
−Removed: The decrease was due primarily to an increase in market interest rates between the two periods across the intermediate and long-term tenors of the curve as the yield curve steepened.
−Removed: These increases in market interest rates resulted in a decrease in the estimated values of the Bank's interest-earning assets by more than it decreased the estimated values of its interest-bearing liabilities.
+Added: The Bank's MVPE decreased from $1.10 billion at September 30, 2024 to $1.08 billion at March 31, 2025.
+Added: The decrease was due primarily to an increase in market interest rates between the two periods across the intermediate and long-term maturities of the curve as the yield curve steepened between the two periods.
+Added: The increases in market interest rates resulted in a decrease in the estimated values of the Bank's interest-earning assets by more than it decreased the estimated values of its interest-bearing liabilities.
As interest rates increase, borrowers have less economic incentive to prepay or to refinance their mortgages, and agency debt issuers have less economic incentive or opportunity to exercise their call options in order to issue new debt at lower interest rates, resulting in lower projected cash flows on these assets.
7 unchanged sentences
This is because the Bank's mortgage-related assets continue to have longer duration in these rate scenarios, which equates to greater market value sensitivity as interest rates change.
−Removed: The following table presents the weighted average yields/rates and WALs (in years), after applying prepayment, call assumptions, and decay rates for our interest-earning assets and interest-bearing liabilities as of December 31, 2024.
+Added: The following table presents the weighted average yields/rates and WALs (in years), after applying prepayment, call assumptions, and decay rates for our interest-earning assets and interest-bearing liabilities as of March 31, 2025.
Yields presented for interest-earning assets include the amortization of fees, costs, premiums and discounts, which are considered adjustments to the yield.
25 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.