47 unchanged sentences
Cumulative gap as a percent of earning assets (37.6) % (37.1) % (37.1) %
−Removed: Net Interest Income at Risk.
−Removed: Net interest income at risk measures the risk of a decline in earnings due to changes in interest rates.
−Removed: The first table below presents an analysis of our interest rate risk as measured by the estimated changes in net interest income resulting from an instantaneous and sustained parallel shift in the yield curve over a 12-month horizon at December 31, 2021.
−Removed: The second table below presents an analysis of our interest rate risk as measured by the estimated changes in net interest income resulting from a gradual shift in the yield curve over a 12-month period.
−Removed: Shifts are measured in 100 basis point increments (+400 through -25 basis points) from base case.
−Removed: We do not present shifts less than 25 basis points because of the current low interest rate environment.
−Removed: The base case scenario encompasses key assumptions for asset/liability mix, loan and deposit growth, pricing, prepayment speeds, deposit decay rates, securities portfolio cash flows and reinvestment strategy and the market value of certain assets under the various interest rate scenarios.
−Removed: The base case scenario assumes that the current interest rate environment is held constant throughout the forecast period for a static balance sheet and the instantaneous and gradual shocks are performed against that yield curve.
−Removed: December 31, 2021
−Removed: Instantaneous Changes in Interest Rates (basis points) Percent Change in Net Interest Income
−Removed: Gradual Changes in Interest Rates (basis points) Percent Change in Net Interest Income
−Removed: These scenarios above are both instantaneous and gradual shocks that assume balance sheet management will mirror the base case.
−Removed: Even if interest rates change in the designated amounts, there can be no assurance that our assets and liabilities would perform as anticipated.
−Removed: Additionally, a change in the U.S.
−Removed: Treasury rates in the designated amounts accompanied by a change in the shape of the U.S.
−Removed: Treasury yield curve would cause significantly different changes to net interest income than indicated above.
−Removed: Strategic management of our balance sheet would be adjusted to accommodate these movements.
−Removed: As with any method of measuring interest rate risk, certain shortcomings are inherent in the methods of analysis presented above.
−Removed: For example, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in different degrees to changes in market interest rates.
−Removed: Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types may lag behind changes in market rates.
−Removed: Also, the ability of many borrowers to service their debt may decrease in the event of an interest rate increase.
−Removed: We consider all of these factors in monitoring exposure to interest rate risk.
−Removed: First Guaranty continues to pursue its strategy to increase loans as a percentage of average assets compared to securities.
−Removed: First Guaranty has also been collateralizing more of its public funds deposits with either FHLB letters of credit or with reciprocal deposit insurance programs.
−Removed: This facilitates the investment of our deposits in higher yielding loans rather than lower yielding securities that generally have higher interest rate risk.
−Removed: This strategy is designed to reduce interest rate risk and improve net interest income.
−Removed: New loans that are originated generally are either floating rate or were fixed rate with maturities that did not exceed five years.
−Removed: Loans as a percentage of average interest- earning assets increased to 77.3% in 2021 compared to 74.7% in 2020.
−Removed: Securities as a percentage of average interest-earning assets decreased from 17.1% in 2020 to 12.8% in 2021.
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.