8 unchanged sentences
These guidelines contain specific measures and limits regarding the risks, which are monitored on a regular basis.
−Removed: The ALCO is made up of the Chief Executive Officer, the Chief Financial Officer, the Asset Liability Management Officer, and other officers representing key functions.
+Added: The ALCO is made up of the President and Chief Executive Officer, the Chief Financial Officer, the Asset Liability Management Officer, and other officers representing key functions.
Interest rate risk is the risk that net interest income will fluctuate as a result of a change in interest rates.
1 unchanged sentence
For that reason, the ALCO has established tolerance limits based upon various basis point changes in interest rates, with appropriate floors set for interest-bearing liabilities.
−Removed: At December 31, 2022, it is estimated that an immediate 100-basis point decrease in interest rates would positively impact the next 12 months net interest income by 0.34% and an immediate 200-basis point increase would positively impact the next 12 months net interest income by 3.33%.
−Removed: Both are within the Corporation's policy guidelines.
+Added: At December 31, 2023, it is estimated that immediate decreases of 100-basis points and 200-basis points in interest rates would positively impact the next 12 months net interest income by 4.07% and 7.27%, respectively, while immediate increases of 100-basis points and 200-basis points would positively impact the next 12 months net interest income by 1.28% and 2.53%, respectively.
+Added: All scenarios are within the Corporation's policy guidelines.
+Added: Chan g e in interest rates
+Added: Percentage Increase (Decrease) in Net Interest Income over 12 Months
+Added: 200 basis points decrease 7.27%
+Added: 100 basis points decrease 4.07%
+Added: 100 basis points increase 1.28%
+Added: 200 basis points increase 2.53%
A related component of interest rate risk is the expectation that the market value of the Corporation’s capital account will fluctuate with changes in interest rates.
1 unchanged sentence
an institution exposed to earnings erosion is also exposed to shrinkage in market value.
−Removed: At December 31, 2022, it is estimated that an immediate 100-basis point decrease in interest rates would positively impact the market value of the Corporation’s capital account by 2.12%.
−Removed: An immediate 200-basis point increase in interest rates would negatively impact the market value by 1.37%, which is within the Corporation’s policy guidelines.
+Added: At December 31, 2023, it is estimated that immediate decreases of 100-basis points and 200-basis points in interest rates would positively impact the market value of the Corporation’s capital account by 4.99% and 8.32%, respectively.
+Added: Immediate increases of 100-basis points and 200-basis points in interest rates would positively impact the market value by 0.09% and 0.36%, respectively, which are within the Corporation’s policy guidelines.
+Added: Chan g e in interest rates
+Added: Percentage Increase (Decrease) in Present Value of Corporation's Equity
+Added: 200 basis points decrease 8.32%
+Added: 100 basis points decrease 4.99%
+Added: 100 basis points increase 0.09%
+Added: 200 basis points increase 0.36%
Management does recognize the need for certain hedging strategies during periods of anticipated higher fluctuations in interest rates and the Funds Management Policy provides for limited use of certain derivatives in asset liability management.
2 unchanged sentences
collection procedures (continued even after a loan is charged off);
−Removed: an adequate allowance for loan losses;
+Added: an adequate allowance for credit losses;
and continuing education and training to ensure lending expertise.
7 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.