4 unchanged sentences
The Company is not subject to foreign currency exchange or commodity price risk.
−Removed: During the three months ended March 31, 2022, we conducted zero transactions involving derivative instruments requiring bifurcation in order to hedge interest rate or market risk.
+Added: During the three and six months ended June 30, 2022, we conducted zero transactions involving derivative instruments requiring bifurcation in order to hedge interest rate or market risk.
Interest Rate Risk Exposure Analysis
1 unchanged sentence
In accordance with agency regulatory guidelines, the Company simulates the impact of interest rate volatility upon EVE using several interest rate scenarios.
−Removed: EVE is the difference between the present value of the expected future cash flows of the Company’s assets and liabilities and the value of any off-balance sheet items, such as derivatives, if applicable.
+Added: EVE is the difference between the
+Added: present value of the expected future cash flows of the Company’s assets and liabilities and the value of any off-balance sheet items, such as derivatives, if applicable.
Traditionally, the fair value of fixed-rate instruments fluctuates inversely with changes in interest rates.
14 unchanged sentences
No matter the care and precision with which the estimates are derived, actual cash flows could differ significantly from the Company’s estimates resulting in significantly different EVE calculations.
−Removed: The analysis that follows presents, as of March 31, 2022 and December 31, 2021, the estimated EVE at both the Pre-Shock Scenario and the +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios.
−Removed: March 31, 2022
+Added: The analysis that follows presents, as of June 30, 2022 and December 31, 2021, the estimated EVE at both the Pre-Shock Scenario and the +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios.
+Added: June 30, 2022
December 31, 2021
4 unchanged sentences
Pre-Shock Scenario
−Removed: The Company’s Pre-Shock Scenario EVE increased from $1.22 billion at December 31, 2021 to $1.74 billion at March 31, 2022.
−Removed: The primary factor contributing to the increase in EVE at March 31, 2022, was the increase in value of the Bank’s low-cost deposit base relative to the current rate environment.
−Removed: During the first quarter of 2022, market interest rates utilized in the calculation of economic value increased materially across all yield curve points.
−Removed: However, management held the Bank’s cost of deposits relatively flat during this same time period, resulting in additional economic value associated with this low-cost funding base.
−Removed: The Company’s EVE in the +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios increased from $1.33 billion and $1.41 billion, respectively, at December 31, 2021, to $1.83 billion and $1.89 billion, respectively, at March 31, 2022.
+Added: The Company’s Pre-Shock Scenario EVE increased from $1.22 billion at December 31, 2021 to $1.72 billion at June 30, 2022.
+Added: The primary factor contributing to the increase in EVE at June 30, 2022, was the increase in value of the Bank’s low-cost deposit base relative to the current rate environment.
+Added: During the first half of 2022, market interest rates utilized in the calculation of economic value increased materially across all yield curve points.
+Added: However, the Bank continued to maintain its low-cost funding base during this time even as market rates have risen measurably, resulting in additional economic value.
+Added: The Company’s EVE in the +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios increased from $1.33 billion and $1.41 billion, respectively, at December 31, 2021, to $1.85 billion and $1.93 billion, respectively, at June 30, 2022.
Income Simulation Analysis .
2 unchanged sentences
Management reports the net interest income simulation results to the Company’s Board of Directors on a quarterly basis.
−Removed: The following table discloses the estimated changes to the Company’s net interest income in various time periods assuming gradual changes in interest rates over a 12-month period beginning March 31, 2022, for the given rate scenarios:
+Added: The following table discloses the estimated changes to the Company’s net interest income in various time periods assuming gradual changes in interest rates over a 12-month period beginning June 30, 2022, for the given rate scenarios:
Percentage Change in Net Interest Income
9 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.