4 unchanged sentences
The Company is not subject to foreign currency exchange or commodity price risk.
−Removed: During the three and nine months ended September 30, 2023, we conducted zero transactions involving derivative instruments requiring bifurcation in order to hedge interest rate or market risk.
+Added: During the three months ended March 31, 2024, 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
−Removed: 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 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 September 30, 2023 and December 31, 2022, the estimated EVE at both the Pre-Shock Scenario and the -100 Basis Point, +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios.
−Removed: September 30, 2023
+Added: The analysis that follows presents, as of March 31, 2024 and December 31, 2023, the estimated EVE at both the Pre-Shock Scenario and the -200 Basis Point, -100 Basis Point, +100 Basis Point, and +200 Basis Point Rate Shock Scenarios.
+Added: March 31, 2024
December 31, 2023
5 unchanged sentences
- 100 Basis Points
−Removed: The Company’s Pre-Shock Scenario EVE decreased from $1.64 billion at December 31, 2022 to $1.33 billion at September 30, 2023.
−Removed: The primary factors contributing to the decline in EVE include a shift in the deposit mix, coupled with an increase in the cost of the Bank’s interest-bearing non-maturity deposits.
−Removed: Further influencing the change in EVE was a decline in the relative value of the Bank’s loan portfolio as market interest rates have increased more than the overall portfolio yield.
−Removed: The Company’s EVE in the +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios decreased from $1.70 billion and $1.72 billion, respectively, at December 31, 2022, to $1.38 billion and $1.40 billion, respectively, at September 30, 2023.
−Removed: In the -100 Basis Point Rate Shock Scenario the Company’s EVE decreased from $1.52 billion at December 31, 2022, to $1.28 billion at September 30, 2023.
+Added: - 200 Basis Points
+Added: The Company’s Pre-Shock Scenario EVE increased from $1.33 billion at December 31, 2023 to $1.48 billion at March 31, 2024.
+Added: The primary factor contributing to the increase in EVE is an increase in the value of the Bank’s non-maturity deposit base.
+Added: Partially offsetting this gain in EVE was a decline in the relative value of the Bank’s loan portfolio.
+Added: The Company’s EVE in the +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios increased from $1.38 billion and $1.41 billion, respectively, at December 31, 2023, to $1.54 billion and $1.52 billion, respectively, at March 31, 2024.
+Added: In the -100 Basis Point Rate and -200 Basis Point Rate Shock Scenario the Company’s EVE increased from $1.25 billion and $1.11 billion, respectively, at December 31, 2023, to $1.43 billion and $1.29 billion, respectively, at March 31, 2024.
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 September 30, 2023, 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 March 31, 2024, for the given rate scenarios:
Percentage Change in Net Interest Income
3 unchanged sentences
- 100 Basis Points
+Added: - 200 Basis Points
Management also examines the potential impact to net interest income by simulating the impact of instantaneous changes to interest rates.
5 unchanged sentences
- 100 Basis Points
+Added: - 200 Basis Points
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.