Quantitative and Qualitative Disclosures About Market Risk
−Removed: Quantitative and qualitative disclosures about market risk were presented at December 31, 2024 in Item 7A of the Holding Company’s Annual Report on Form 10-K, filed with the SEC on February 20, 2025.
+Added: Quantitative and qualitative disclosures about market risk were presented at December 31, 2024 in Item 7A of the Company’s Annual Report on Form 10-K, filed with the SEC on February 20, 2025.
The following is an update of the discussion provided therein.
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The Company is not subject to foreign currency exchange or commodity price risk.
−Removed: During the six months ended June 30, 2025, we conducted zero transactions involving derivative instruments requiring bifurcation in order to hedge interest rate or market risk.
+Added: During the nine months ended September 30, 2025, we conducted zero transactions involving derivative instruments requiring bifurcation in order to hedge interest rate or market risk.
Interest Rate Risk Exposure Analysis
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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 June 30, 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.
−Removed: June 30, 2025
+Added: The analysis that follows presents, as of September 30, 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: September 30, 2025
December 31, 2024
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- 200 Basis Points
−Removed: The Company’s Pre-Shock Scenario EVE increased marginally from $1.76 billion at December 31, 2024 to $1.80 billion at June 30, 2025.
+Added: The Company’s Pre-Shock Scenario EVE increased marginally from $1.76 billion at December 31, 2024 to $1.82 billion at September 30, 2025.
The primary factors contributing to the increase in EVE is an increase in the value of the Bank’s loan and investment portfolios, partially offset by a decline in 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 $1.84 billion and $1.86 billion, respectively, at December 31, 2024, to $1.91 billion and $1.96 billion, respectively, at June 30, 2025.
−Removed: 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 $1.63 billion and $1.39 billion, respectively, at June 30, 2025.
+Added: The Company’s EVE in the +100 Basis Point Rate and +200 Basis Point Rate Shock Scenarios increased from $1.84 billion and $1.86 billion, respectively, at December 31, 2024, to $1.97 billion and $2.04 billion, respectively, at September
+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 $1.63 billion and $1.37 billion, respectively, at September 30, 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
−Removed: 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 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 occurring equally across all points on the yield curve over a 12-month period beginning June 30, 2025, 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 September 30, 2025, for the given rate scenarios:
Percentage Change in Net Interest Income
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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.