21 unchanged sentences
• 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 balloon mortgage loans with a term of seven years or less;
+Added: • managing our funding needs growing core deposits;
+Added: • utilize brokered certificate of deposits and borrowings as appropriate, which may have fixed rates with varying maturities;
• purchasing investment securities to modify our interest rate risk profile
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 June 30, 2021 and December 31, 2020 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).
−Removed: As of June 30, 2021 and December 31, 2020, due to the current level of interest rates, EVE estimates for decreases in interest rates greater than 100 basis points are not meaningful.
+Added: With the growth in the investment securities portfolio, largely due to the purchase of mortgage-backed securities, the Company’s planned actions reduced asset sensitivity in the first quarter of 2021.
+Added: In addition, the Company originated loan growth, which reduce overnight interest-bearing cash and the reduction in short-term SBA PPP loans, also reduce asset sensitivity.
+Added: As such, the Company is now modestly liability sensitive.
+Added: The following table sets forth, at September 30, 2021 and December 31, 2020 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 September 30, 2021 and December 31, 2020, due to the current level of interest rates, EVE estimates for decreases in interest rates greater than 100 basis points are not meaningful.
Percent Change in Economic Value of Equity (EVE)
Change in Interest Rates in Basis Points (“bp”)
−Removed: Rate Shock in Rates (1) At June 30, 2021 At December 31, 2020
+Added: Rate Shock in Rates (1) At September 30, 2021 At December 31, 2020
+300 bp (3) % 15 %
5 unchanged sentences
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 June 30, 2021 and December 31, 2020.
+Added: The table below presents our projected change in net interest income for the various rate shock levels at September 30, 2021, and December 31, 2020.
Percent Change in Net Interest Income Over One Year Horizon
Change in Interest Rates in Basis Points (“bp”)
−Removed: Rate Shock in Rates (1) At June 30, 2021 At December 31, 2020
+Added: Rate Shock in Rates (1) At September 30, 2021 At December 31, 2020
+300 bp (7) % 3 %
8 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.