9 unchanged sentences
In monitoring interest rate risk we continually analyze and manage assets and liabilities based on their payment streams and interest rates, the timing of their maturities, and their sensitivity to actual or potential changes in market interest rates.
−Removed: In order to manage the potential for adverse effects of material and prolonged increases in interest rates on our results of operations, we adopted asset and liability management policies to better align the maturities and re-pricing terms of our interest earning assets and interest bearing liabilities.
+Added: In order to manage the potential for adverse effects of material and prolonged increases in interest rates on our results of operations, we adopted asset and liability management policies to better align the maturities and re-pricing terms of our interest
+Added: earning assets and interest bearing liabilities.
These policies are implemented by our Asset and Liability Management Committee (ALCO).
6 unchanged sentences
In order to manage our assets and liabilities and achieve desired levels of liquidity, credit quality, cash flow, interest rate risk, profitability and capital targets, we have focused our strategies on:
−Removed: originating shorter-term secured commercial, agriculture and consumer loan maturities;
−Removed: originating variable rate commercial and agriculture loans;
−Removed: managing our exposure to changes in interest rates, including, but not limited to the sale of longer-term fixed-rate residential loans in the secondary market with retained servicing;
−Removed: originating balloon mortgage loans with a term of five years or less to minimize the impact of sudden rate changes;
−Removed: managing our funding needs by utilizing core deposits, brokered certificates of deposits and borrowings as appropriate to extend terms and lock in fixed interest rates;
+Added: • originating shorter-term secured commercial, agriculture and consumer loan maturities, which could include balloon mortgage loans;
+Added: • originating variable rate commercial and agriculture loans and adjustable-rate commercial and agriculture loans;
+Added: • the sale of a vast majority of longer-term fixed-rate residential loans in the secondary market with retained servicing;
+Added: • managing our funding needs by utilizing core deposits, brokered certificates of deposits and borrowings as appropriate, with borrowing used to extend terms and lock in fixed interest rates;
• reducing non-interest expense and managing our efficiency ratio by implementing technologies to enhance customer service and increase employee productivity;
1 unchanged sentence
At times, depending on the level of general interest rates, the relationship between long- and short-term interest rates, market conditions and competitive factors, the ALCO may determine to increase the Bank’s interest rate risk position somewhat in order to maintain or improve its net interest margin.
−Removed: The following table sets forth, at December 31, 2019 , December 31, 2018 and September 30, 2018, an analysis of our interest rate risk as measured by the estimated changes in Economic Value of Equity (EVE) resulting from an immediate and permanent shift in the yield curve (up 300 basis points and down 200 basis points).
−Removed: As of December 31, 2019 , December 31, 2018 and September 30, 2018, due to the current level of interest rates, EVE estimates for decreases in interest rates greater than 200 basis points are not meaningful.
+Added: The following table sets forth, at December 31, 2020 and December 31, 2019, an analysis of our interest rate risk as measured by the estimated changes in Economic Value of Equity (EVE) resulting from an immediate and permanent shift in the yield curve (up 300 basis points and down 100 basis points).
+Added: As of December 31, 2020, and December 31, 2019, due to the current level of interest rates, EVE estimates for decreases in interest rates greater than 100 basis points are not meaningful.
+Added: The increase in changes in economic value of equity as a percentage of equity is due to the growth in non-maturity deposits, and the net reduction in longer-term fixed rate loans.
Percent Change in Economic Value of Equity (EVE)
Change in Interest Rates in Basis Points (“bp”)
−Removed: Rate Shock in Rates (1)
−Removed: At December 31, 2019
−Removed: At December 31, 2018
−Removed: At September 30, 2018
+Added: Rate Shock in Rates (1) At December 31, 2020 At December 31, 2019
+Added: +300 bp 15% 1%
+Added: +200 bp 11% 2%
+Added: +100 bp 7% 1%
+Added: -100 bp —% (2)%
(1) Assumes an immediate and parallel shift in the yield curve at all maturities.
1 unchanged sentence
This analysis assesses the risk of change in our net interest income over the next 12 months in the event of an immediate and parallel shift in the yield curve (up 300 basis points and down 100 basis points).
−Removed: The table below presents our projected change in net interest income for the various rate shock levels at December 31, 2019 , December 31, 2018 and September 30, 2018.
+Added: The table below presents our projected change in net interest income for the various rate shock levels at December 31, 2020 and December 31, 2019.
+Added: The growth in percent change in net interest income in the various rate shock environments is due to the growth in assumed variable-rate Federal Reserve overnight balances and variable-rate loan assets.
Percent Change in Net Interest Income Over One Year Horizon
Change in Interest Rates in Basis Points (“bp”)
−Removed: Rate Shock in Rates (1)
−Removed: At December 31, 2019
−Removed: At December 31, 2018
−Removed: At September 30, 2018
+Added: Rate Shock in Rates (1) At December 31, 2020 At December 31, 2019
+Added: +300 bp 3% (5)%
+Added: +200 bp 3% (4)%
+Added: +100 bp 2% (2)%
+Added: -100 bp (1)% 1%
(1) Assumes an immediate and parallel shift in the yield curve at all maturities.
4 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.