9 unchanged sentences
Interest rates are highly sensitive to many factors that are beyond our control, including general economic conditions and policies of various governmental and regulatory agencies and, in particular, the Federal Reserve.
−Removed: Changes in monetary policy, including changes in interest rates, influence not only the interest we receive on loans and investments and the amount of interest we pay on deposits and borrowings, but such changes could also affect the average duration of our mortgage portfolio, investment securities and other interest-earning assets.
+Added: Changes in monetary policy, including changes in interest rates, influence not only the interest we receive on loans and investments and the amount of interest we pay on deposits and borrowings, but such changes could also affect the average duration of our loan portfolio, investment securities and other interest-earning assets.
Our goal is to structure our asset/liability composition to maximize net interest income while managing interest rate risk so as to minimize the adverse impact of changes in interest rates on net interest income and capital in either a rising or declining interest rate environment.
18 unchanged sentences
The model does not take into account any future actions that management may take to mitigate the impact of interest rate changes, and it is our strategy to proactively change the volume and mix of our balance sheet in order to mitigate our interest rate risk.
−Removed: As of March 31, 2025, the net interest income sensitivity indicated an asset sensitive position to net interest income from immediate parallel rate shifts in both rising and falling rates over a one year period with an increase of 5.5% in + 200 rate scenario, an increase of 5.7% in +100 rate scenario, a decrease of 1.2% in -100 scenario and a decrease of 2.5% in a -200 rate scenario.
−Removed: These scenarios assume an immediate change in rates and no change in the shape of the yield curve.
+Added: As of June 30, 2025, the net interest income sensitivity indicated an asset sensitive position to net interest income from immediate parallel rate shifts in both rising and falling rates over a one year period with an increase of 4.7% in + 200 rate scenario, an increase of 4.2% in +100 rate scenario, a decrease of 1.8% in -100 scenario and a decrease of 3.9% in a -200 rate scenario.
+Added: These scenarios assume an immediate change in rates and no change in the shape of the yield curve, which as previously described remains relatively flat.
Management also evaluates a steepening of the yield curve in rate reduction scenarios.
7 unchanged sentences
The same assumptions are generally used in the economic value simulation as in the earnings simulation, including immediate and parallel rate shocks and static assumptions for deposit average decay rate and average lives.
−Removed: As of March 31, 2025, the Company’s economic value of equity ("EVE") generally declines in rising rate scenarios and improves in falling rate scenarios.
+Added: As of June 30, 2025, the Company’s economic value of equity ("EVE") generally declines in rising rate scenarios and improves in falling rate scenarios.
The decline in EVE under a rising rate environment is driven by the composition of the loans and investment portfolios, primarily related to fixed rate loans and fixed rate mortgage-backed securities as compared to a higher proportion of deposits having variable rates.
In addition to impacts on market values from changes in interest rates, fixed rate loans and securities tend to prepay more quickly in lower rate environments and prepay more slowly in rising rate environments, leading to impacts on their relative valuation in the EVE calculation.
−Removed: As of March 31, 2025, the impact of increasing rates on EVE were -2.3% in +100 rate scenario and -10.5% in +200 rate scenario, compared to +3.8% in -100 rate scenario and +4.1% in -200 rate scenario.
+Added: As of June 30, 2025, the impact of increasing rates on EVE were -3.2% in +100 rate scenario and -10.5% in +200 rate scenario, compared to +3.1% in -100 rate scenario and +2.7% in -200 rate scenario.
Additional discussion concerning our exposure to interest rate risk is presented in Item 7A of the 2024 Annual Report on Form 10-K filed with the SEC.
3 unchanged sentences
Inflation affects the Company’s results of operations mainly through increased operating costs, and the impact of inflation on banks in general is normally not as significant as its influence on those businesses that have large investments in plant and inventories.
−Removed: We review the pricing of our products and services, as well as our controllable operating and labor costs in light of current and expected costs due to inflation, to mitigate the inflationary impact on financial performance to the extent possible.
+Added: the pricing of our products and services, as well as our controllable operating and labor costs in light of current and expected costs due to inflation, to mitigate the inflationary impact on financial performance to the extent possible.
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.