1 unchanged sentence
Our Risk When Interest Rates Change .
−Removed: The rates of interest we earn on assets and pay on liabilities generally are established contractually for a period of time.
+Added: The rates of interest we earn on assets and pay on liabilities generally are established contractually, with various repricing indices.
Market interest rates change over time and are not predictable or controllable.
7 unchanged sentences
These policies are implemented by our Asset and Liability Management Committee (ALCO).
−Removed: The ALCO is comprised of members of the Bank’s senior management and Board of Directors.
+Added: The ALCO is comprised of members of the Bank’s senior management and a member of the Board of Directors.
The ALCO establishes guidelines for and monitors the volume and mix of our assets and funding sources, taking into account relative costs and spreads, interest rate sensitivity and liquidity needs.
6 unchanged sentences
• originating variable rate commercial and agricultural loans;
−Removed: • the sale of a vast majority of longer-term fixed-rate residential loans in the secondary market with retained servicing;
−Removed: • managing our funding needs growing core deposits;
+Added: • the sale of a vast majority of longer-term fixed-rate residential loans in the secondary market with servicing retained;
+Added: • managing our funding needs by growing core deposits;
• utilize brokered certificate of deposits and borrowings as appropriate, which may have fixed rates with varying maturities;
24 unchanged sentences
The table above may not be indicative of future results.
−Removed: The projected changes in net interest income in the rate shock scenarios is largely due to the impact of growth in short-term certificates of deposits, which reprice faster and at a higher rate than other deposit products.
+Added: The percent change in net interest income over one year horizon at December 31, 2024 compared to December 31, 2023 is largely due to the impact of a 100 basis point reduction in short-term interest rates in the third and fourth quarter with an increase of approximately 70 basis points in the ten year Treasury rate at December 31, 2024 compared to December 31, 2023, which results in a shifting in results in the +300bp (similar to +2 and 200bp (similar to +300bp) and -200bp scenarios (similar to -200bp)).
The assumptions used to measure and assess interest rate risk include interest rates, loan prepayment rates, deposit decay (runoff) rates, and the market values of certain assets under differing interest rate scenarios.
2 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.