11 unchanged sentences
Profitability is affected by fluctuations in interest rates.
−Removed: A sudden and substantial change in interest rates will generally impact our earnings adversely because the interest rates of the underlying assets and liabilities do not change at the same speed, to the same extent or on the same basis.
+Added: A sudden and substantial change in interest rates may adversely impact our earnings because the interest rates of the underlying assets and liabilities do not change at the same speed, to the same extent or on the same basis.
Interest rate risk is monitored through the use of three complementary modeling tools:
31 unchanged sentences
(1) - The percentage change represents the projected net interest income for 12 months on a static balance sheet in a stable rate environment as compared to the projected net interest income in the various rate scenarios with immediate and parallel shocks applied to the yield curve.
−Removed: With the FOMC increasing the target federal funds rate in 2022 and 2023, for December 31, 2023 the Company's sensitivity position was such that in the short-term it was projected that net interest income would likely fall in both a rising and falling rate environment.
−Removed: As of December 31, 2024 we expect net interest income to remain relatively stable in a plus 200 basis points or minus 200 basis point interest rate curve parallel shift scenario.
During the last four months of 2024, the FOMC decreased short term rates 100 basis points with a target federal funds rate of 4.25% - 4.50% at December 31, 2024.
−Removed: As evidenced by our results for 2024, the Company has reacted quickly to interest rate cuts by the FOMC and thus reduced the Company's total cost of deposits, thereby increasing net interest income.
−Removed: As of December 31, 2024, assuming no change in the shape of the yield curve, the Company is reflecting an asset sensitive position, with relatively smaller changes in the declining scenarios, particularly -100 and -200 basis points.
+Added: Further, during the last four months of 2025, the FOMC again decreased short term rates another 75 basis points with a target federal funds rate of 3.50%-3.75% at December 31, 2025.
+Added: As evidenced by our results for 2024 and 2025, the Company has reacted quickly to interest rate cuts by the FOMC and thus reduced the Company's total cost of deposits, thereby increasing net interest income.
+Added: As of December 31, 2025, assuming no change in the shape of the yield curve, the Company is reflecting an asset sensitive position.
+Added: Given the decline in the short term rates from December 31, 2024 to December 31, 2025, the declining rate scenarios for the current year reflect the impact of deposit accounts approaching or reaching minimum rate levels.
The shape of the yield curve also has a significant impact on the earnings of financial institutions, including the Company.
11 unchanged sentences
The net economic value of equity is the economic value of all assets minus the economic value of all liabilities.
−Removed: The change in net economic value over different rate environments is an indication of the longer-term earnings capability of the balance sheet.
+Added: The change in net economic value over different rate environments is an indication of the longer-term earnings capability of the
+Added: balance sheet.
The same assumptions are used in the economic value simulation as in the earnings simulation.
13 unchanged sentences
(1) - The percentage change represents our economic value of equity in a stable rate environment as compared to the economic value of equity in the various rate scenarios with immediate and parallel shocks applied to the yield curve.
−Removed: As of December 31, 2024, the Company's EVE exposure to rising rates has improved at all levels and exposure to declining rates has depreciated slightly as the short term rates have fallen about 100 basis points during the last four months of 2024.
−Removed: The improvement in EVE under a rising rate environment is driven by repositioning of the Company's assets to be less negatively impacted by rising rates, generally through an increase in variable rate assets.
−Removed: The decline in EVE under some of the declining rate environments is driven by the actual decline in rates during the year as well as repayment of wholesale borrowings through more stable deposits which are modeled to show more fluctuation in EVE, but which are a preferred funding source.
−Removed: Portions of the Company's deposits are also nearing their modeled floor rates and therefore reflect a negative projected change in value.
+Added: As of December 31, 2025, the Company's EVE variability has remained relatively consistent across rate levels compared to 2024.
+Added: Portions of the Company's deposits are nearing their modeled floor rates and therefore reflect a negative projected change in value for the more pronounced rate declines.
Refer also to the discussion above under Earnings Simulation Analysis.
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.