17 unchanged sentences
The Committee is responsible for reviewing and reporting on the effects of the policy implementations and strategies to the Bank’s Board of Directors on a regularly scheduled basis.
−Removed: In managing our assets and liabilities to achieve desired levels interest rate risk, we have focused our strategies on:
+Added: In managing our assets and liabilities to achieve desired levels of interest rate risk, we have focused our strategies on:
• originating shorter-term secured commercial, agricultural and consumer loan maturities;
• originating variable rate commercial and agricultural 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 seven years or less;
+Added: • the sale of a vast majority of longer-term fixed-rate residential loans in the secondary market with retained servicing;
• managing our funding needs growing core deposits;
2 unchanged sentences
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: 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.
−Removed: 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.
−Removed: As such, the Company is now modestly liability sensitive.
−Removed: 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).
−Removed: 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.
+Added: The following table sets forth, at March 31, 2022 and December 31, 2021 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 March 31, 2022 and December 31, 2021, 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 September 30, 2021 At December 31, 2020
+Added: Rate Shock in Rates (1) At March 31, 2022 At December 31, 2021
+300 bp (9) % (5) %
4 unchanged sentences
Our overall interest rate sensitivity is demonstrated by net interest income shock analysis which measures the change in net interest income in the event of hypothetical changes in interest rates.
−Removed: 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 September 30, 2021, and December 31, 2020.
+Added: 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
+Added: and down 100 basis points).
+Added: The table below presents our projected change in net interest income for the various rate shock levels at March 31, 2022, and December 31, 2021.
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 September 30, 2021 At December 31, 2020
+Added: Rate Shock in Rates (1) At March 31, 2022 At December 31, 2021
+300 bp (7) % (11) %
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.