7 unchanged sentences
Our net interest income results from the difference between the yields we earn on our interest-earning assets, primarily loans and investments, and the rates that we pay on our interest-bearing liabilities, primarily deposits and borrowings.
−Removed: When interest rates change, the yields we earn on our interest-earning assets and the rates we pay on our interest-bearing liabilities do not necessarily move in tandem with each other because of the difference between their maturities and repricing characteristics and which can negatively impact net interest income.
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 loan portfolio, investment securities and other interest-earning assets.
+Added: When interest rates change, the yields we earn on our interest-earning assets and the rates we pay on our interest-bearing liabilities do not necessarily move in tandem with each other because of the difference between their maturities and repricing characteristics and this can negatively impact net interest income.
+Added: Changes in interest
+Added: rates and monetary policy 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.
4 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
−Removed: 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 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.
5 unchanged sentences
The model assumes a static balance sheet with cash flows reinvested in similar instruments to maintain the balance sheet levels and current composition.
−Removed: Actual cash flows and repricing characteristics for our balance sheet instruments are input to the model.
−Removed: The model incorporates market-based assumptions regarding the impact of changing interest rates on the prepayment rate of certain assets and liabilities.
+Added: The model utilizes the actual cash flows and repricing characteristics for our balance sheet instruments and incorporates market-based assumptions regarding the impact of changing interest rates on the prepayment rate of certain assets and liabilities.
Because these assumptions are inherently uncertain, actual results may differ from simulated results.
2 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 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.
−Removed: These scenarios assume an immediate change in rates and no change in the shape of the yield curve, which remains relatively flat.
+Added: As of June 30, 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 5.7% 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 5.3% in a -200 rate scenario.
+Added: These scenarios assume an immediate change in rates and no change in the shape of the yield curve from the level as of June 30, 2026.
Management also evaluates a steepening of the yield curve in rate reduction scenarios.
1 unchanged sentence
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.
−Removed: The above scenarios do not reflect the potential actions of management to actively manage net interest margin and earnings.
+Added: The above scenarios do not reflect the potential future actions of management to actively manage net interest margin and earnings.
Assumptions utilized in the net interest income sensitivity analyses are inherently uncertain, and actual results may differ from simulated results.
5 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, 2026, the Company’s economic value of equity ("EVE") generally declines in rising rate scenarios and improves or remains stable in falling rate scenarios.
+Added: As of June 30, 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.
−Removed: 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 March 31, 2026, the impact of increasing rates on EVE were -2.3% in +100
−Removed: rate scenario and -7.4% in +200 rate scenario, compared to +1.1% in -100 rate scenario and -0.8% in -200 rate scenario.
+Added: 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.
+Added: As of June 30, 2026, the impact of increasing rates on EVE were -1.8% in +100 rate scenario and -6.4% in +200 rate scenario, compared to +0.7% in -100 rate scenario and -1.4% 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.
5 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.