16 unchanged sentences
While interest rate risk models have limitations, taken together they represent a reasonably comprehensive view of the magnitude of our interest rate risk, the level of risk through time, and the amount of exposure to changes in certain interest rate relationships.
−Removed: Earnings simulation and economic value models are utilized by management on a regular basis as they more effectively measure the cash flow and optionality impacts than does a static gap analysis.
+Added: Earnings simulation and economic value models are utilized by management on a regular basis as they more effectively measure the cash flow and
+Added: optionality impacts than does a static gap analysis.
From the various model results and our expectations regarding future interest rate movements, the national, regional and local economies, and other financial and business risk factors, we quantify the overall magnitude of interest sensitivity risk and then determine appropriate strategies and practices governing asset growth and pricing, funding sources and pricing, and off-balance sheet commitments.
11 unchanged sentences
The model is one tool used by management to evaluate risk and responses to economic changes and 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 September 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 4.6% in +200 rate scenario, an increase of 3.8% in +100 rate scenario, a decrease of 2.0% in -100 scenario and a decrease of 4.2% in a -200 rate scenario.
−Removed: 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.
+Added: As of March 31, 2026, 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 3.9% in +100 rate scenario, a decrease of 2.8% in -100 scenario and a decrease of 5.2% 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 remains relatively flat.
Management also evaluates a steepening of the yield curve in rate reduction scenarios.
−Removed: For a -100 rate scenario, net interest income would increase by 1.5% and for a -200 rate scenario, net interest income would decrease by 1.8%.
+Added: For a -100 rate scenario, net interest income over one year would increase by 0.8% and for a -200 rate scenario, net interest income over one year would decrease by 3.0%.
As economic conditions and interest rates change over time, management proactively manages the rates earned on assets and the rates paid on liabilities as well as the mix and volume of our balance sheet.
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 September 30, 2025, the Company’s economic value of equity ("EVE") generally declines in rising rate scenarios and improves in falling rate scenarios.
+Added: As of March 31, 2026, the Company’s economic value of equity ("EVE") generally declines in rising rate scenarios and improves or remains stable 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 calcul ation.
−Removed: As of September 30, 2025, the impact of increasing rates on EVE were -3.0% in +100 rate scenario and -9.9% in +200 rate scenario, compared to +2.5% in -100 rate scenario and +1.4% in -200 rate scenario.
+Added: As of March 31, 2026, the impact of increasing rates on EVE were -2.3% in +100
+Added: rate scenario and -7.4% in +200 rate scenario, compared to +1.1% in -100 rate scenario and -0.8% in -200 rate scenario.
Additional discussion concerning our exposure to interest rate risk is presented in Item 7A of the 2025 Annual Report on Form 10-K filed with the SEC.
Our financial statements have been prepared in accordance with GAAP, which requires the financial position and operating results to be measured principally in terms of historic dollars without considering the change in the relative purchasing power of money over time due to inflation.
−Removed: Nearly all of the Company’s assets and liabilities are monetary in nature, and as such, changes in interest rates (as discussed above) generally affect the financial condition of the Company to a greater degree than changes in the
−Removed: rate of inflation.
+Added: Nearly all of the Company’s assets and liabilities are monetary in nature, and as such, changes in interest rates (as discussed above) generally affect the financial condition of the Company to a greater degree than changes in the rate of inflation.
Although interest rates are influenced by changes in the inflation rate, they do not necessarily change at the same rate or in the same magnitude as the inflation rate.
2 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.