9 unchanged sentences
Our asset and liability management objectives are to maintain a strong, stable net interest margin, to utilize its capital effectively without taking undue risks, to maintain adequate liquidity, and to reduce vulnerability of our operations to changes in interest rates.
−Removed: Our Asset and Liability Committee evaluates periodically, but no less than four times annually, the impact of changes in market interest rates on assets and liabilities, net interest margin, capital and liquidity.
+Added: Our Asset and Liability Management Committee evaluates periodically, but no less than four times annually, the impact of changes in market interest rates on assets and liabilities, net interest margin, capital and liquidity.
Risk assessments are governed by policies and limits established by senior management, which are reviewed and approved by the Board of Directors at least annually.
The economic environment continually presents uncertainties as to future interest rate trends.
−Removed: The Asset and Liability Committee regularly utilizes a model that projects net interest income based on increasing or decreasing interest rates, in order to be better able to respond to changes in interest rates.
−Removed: At December 31, 2023, $1.26 billion, or 85.2%, of our available-for-sale and held-to-maturity securities had fixed interest rates.
+Added: The Asset and Liability Management Committee regularly utilizes a model that projects net interest income based on increasing or decreasing interest rates, in order to be better able to respond to changes in interest rates.
+Added: At December 31, 2024, $273.1 million, or 20.6%, of our available-for-sale and held-to-maturity securities had adjustable interest rates.
At December 31, 2024, $7.98 billion, or 73.4%, of the loan portfolio had contractual terms with adjustable or floating interest rates.
1 unchanged sentence
Generally, the value of securities fluctuates inversely with changes in interest rates.
−Removed: Increases in interest rates could result
−Removed: in decreases in the market value of interest-earning assets, which could adversely affect stockholders’ equity and the results of operations if sold.
+Added: Increases in interest rates could result in decreases in the market value of interest-earning assets, which could adversely affect stockholders’ equity and the results of operations if sold.
The Company is also subject to reinvestment risk associated with changes in interest rates.
18 unchanged sentences
The Company’s estimates for loan repayment levels are influenced by the recent history of prepayment activity in its loan portfolio, as well as the interest rate composition of the existing portfolio, especially in relation to the existing interest rate environment.
−Removed: In addition, the Company considers the amount of fee protection inherent in the loan portfolio when estimating future repayment cash flows.
Regarding deposit decay rates, the Company tracks and analyzes the decay rate of its deposits over time, with the assistance of a reputable third-party, and over various interest rate scenarios.
3 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 December 31, 2023 and 2022, the estimated EVE at both the Pre-Shock Scenario and the -100 Basis Point Rate, +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios.
+Added: The analysis that follows presents, as of December 31, 2024 and 2023, the estimated EVE at both the Pre-Shock Scenario and the -200 Basis Point Rate, -100 Basis Point Rate, +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios.
December 31, 2024
6 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 December 31, 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 during the year.
−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 $1.41 billion, respectively, at December 31, 2023.
−Removed: In the -100 Basis Point Rate Shock Scenario the Company’s EVE decreased from $1.52 billion at December 31, 2022, to $1.25 billion at December 31, 2023.
+Added: - 200 Basis Points
+Added: The Company’s Pre-Shock Scenario EVE increased from $1.33 billion at December 31, 2023, to $1.76 billion at December 31, 2024.
+Added: The primary factors contributing to the increase in EVE is an increase in the value of the Bank’s non-maturity deposit base as well as down streaming some of the proceeds of a common stock offering to the Bank.
+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 $1.84 billion and $1.86 billion, respectively, at December 31, 2024.
+Added: In the -100 Basis Point Rate and -200 Basis Point Rate Shock Scenarios the Company’s EVE increased from $1.25 billion and $1.11 billion, respectively, at December 31, 2023, to $1.64 billion and $1.44 billion, respectively, at December 31, 2024.
Income Simulation Analysis .
8 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.