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, 2024, 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, 2025, we conducted zero transactions involving derivative instruments requiring bifurcation in order to hedge interest rate or market risk.
Interest Rate Risk Exposure Analysis
5 unchanged sentences
The changes in the value of assets and liabilities due to fluctuations in interest rates measure the interest rate sensitivity of those assets and liabilities.
−Removed: In order to measure the Company’s sensitivity to changes in interest rates, EVE is calculated under market interest rates prevailing at a given quarter-end (“Pre-Shock Scenario”), and under various other interest rate scenarios (“Rate Shock Scenarios”) representing immediate, permanent, parallel shifts in the term structure of interest rates from the actual term structure observed in the Pre-Shock Scenario.
+Added: In order to measure the Company’s sensitivity to changes in interest rates, EVE is calculated under market interest rates prevailing at a given quarter-end (“Pre-Shock Scenario”), and under various other interest rate scenarios (“Rate Shock Scenarios”) representing immediate, permanent, parallel shifts in the term structure of interest rates from the actual term structure observed in the Pre-Shock Scenario, with this shift occurring equally across all points on the yield curve.
An increase in the EVE is considered favorable, while a decline is considered unfavorable.
4 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 September 30, 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.
−Removed: September 30, 2024
+Added: The analysis that follows presents, as of March 31, 2025 and December 31, 2024, 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, 2025
December 31, 2024
6 unchanged sentences
- 200 Basis Points
−Removed: The Company’s Pre-Shock Scenario EVE increased from $1.33 billion at December 31, 2023 to $1.54 billion at September 30, 2024.
−Removed: The primary factor contributing to the increase in EVE is an increase in the value of the Bank’s non-maturity deposit base.
−Removed: 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 $1.66 billion and $1.70 billion, respectively, at September 30, 2024.
−Removed: 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 $1.42 billion and $1.20 billion, respectively, at September 30, 2024.
+Added: The Company’s Pre-Shock Scenario EVE decreased from $1.76 billion at December 31, 2024 to $1.71 billion at March 31, 2025.
+Added: The primary factor contributing to the decrease in EVE is a decrease in the value of the Bank’s non-maturity deposit base, partially offset by an increase in value of the loan portfolio.
+Added: The Company’s EVE in the +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios decreased from $1.84 billion and $1.86 billion, respectively, at December 31, 2024, to $1.81 billion and $1.85 billion, respectively, at March 31, 2025.
+Added: In the -100 Basis Point Rate and -200 Basis Point Rate Shock Scenario the Company’s EVE decreased from $1.64 billion and $1.44 billion, respectively, at December 31, 2024, to $1.57 billion and $1.36 billion, respectively, at March 31, 2025.
Income Simulation Analysis .
As of the end of each quarterly period, the Company also monitors the impact of interest rate changes through a net interest income simulation model.
−Removed: This model estimates the impact of interest rate changes on the Company’s net interest income over forward-looking periods typically not exceeding 36 months (a considerably shorter period than measured through the EVE analysis).
+Added: This model estimates the impact of interest rate changes on the Company’s net interest income over forward-looking periods typically not exceeding 36 months (a considerably shorter
+Added: period than measured through the EVE analysis).
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, 2024, 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 occurring equally across all points on the yield curve over a 12-month period beginning March 31, 2025, for the given rate scenarios:
Percentage Change in Net Interest Income
4 unchanged sentences
- 200 Basis Points
−Removed: Management also examines the potential impact to net interest income by simulating the impact of instantaneous changes to interest rates.
+Added: Management also examines the potential impact to net interest income by simulating the impact of instantaneous changes to interest rates occurring equally across all points on the yield curve.
The following table discloses the estimated changes to the Company’s net interest income in various time periods associated with the given interest rate shock scenarios.
6 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.