6 unchanged sentences
Credit risk is found in all activities where success depends on counterparty, issuer, or borrower performance.
−Removed: Credit risk in the investment portfolio and correspondent bank accounts is addressed through defined limits in the Company’s policy statements.
+Added: Credit risk in the investment portfolio and correspondent bank accounts are addressed through defined limits in the Company’s policy statements.
In addition, certain securities carry insurance to enhance credit quality of the bond.
37 unchanged sentences
and (2) the long-term risks associated with the availability of water in the Central Valley.
−Removed: and (3) the impact of COVID-19.
Management reviews all of these conditions in discussion with the Company’s senior credit officers.
1 unchanged sentence
Where any of these conditions is not evidenced by a specifically identifiable impaired credit or portfolio segment as of the evaluation date, management’s evaluation of the inherent loss related to such condition is reflected in the second element of the allowance or in the unallocated allowance.
−Removed: Management believes, that based upon the preceding methodology, and using information currently available, the allowance for credit losses at September 30, 2020, was adequate.
+Added: Management believes, that based upon the preceding methodology, and using information currently available, the allowance for credit losses at March 31, 2021 was adequate.
No assurances can be given that future events may not result in increases in delinquencies, non-performing loans & leases, or net loan & lease charge-offs that would require increases in the provision for credit losses and thereby adversely affect the results of operations.
21 unchanged sentences
Results that exceed policy limits, if any, are analyzed for risk tolerance and reported to the Board with appropriate recommendations.
−Removed: At September 30, 2020, the Company’s estimated net interest income sensitivity to changes in interest rates, as a percent of net interest income was a increase in net interest income of .50% if rates increase by 200 basis points and an increase in net interest income of .80% if rates decline 100 basis points.
−Removed: Comparatively, at December 31, 2019, the Company’s estimated net interest income sensitivity to changes in interest rates, as a percent of net interest income was an increase in net interest income of 2.0% if rates increase by 200 basis points and a decrease in net interest income of 2.0% if rates decline 100 basis points.
+Added: At March 31, 2021, the Company’s estimated net interest income sensitivity to changes in interest rates, as a percent of net interest income was a slight increase in net interest income of 0.15% if rates increase by 200 basis points and a decrease in net interest income of 0.15% if rates decline 100 basis points.
+Added: Comparatively, at December 31, 2020, the Company’s estimated net interest income sensitivity to changes in interest rates, as a percent of net interest income was a decrease in net interest income of .03% if rates increase by 200 basis points and a decrease in net interest income of .02% if rates decline 100 basis points.
The estimated sensitivity does not necessarily represent a Company forecast and the results may not be indicative of actual changes to the Company’s net interest income.
13 unchanged sentences
To supplement these operating sources of funds the Company maintains Federal Funds credit lines of $118 million and repurchase lines of $112 million with major banks.
−Removed: As of September 30, 2020, the Company has additional borrowing capacity of $608.9 million with the FHLB and $446.3 million with the FRB.
+Added: As of March 31, 2021, the Company has additional borrowing capacity of $673.5 million with the FHLB and $446.6 million with the FRB.
Borrowings under these lines are collateralized with loans or securities that have been accepted for pledging at the FHLB and FRB.
−Removed: At September 30, 2020, the Company had available sources of liquidity, which included cash and cash equivalents and unpledged investment securities AFS of approximately $378.2 million, which represents 8.79% of total assets.
+Added: At March 31, 2021, the Company had available sources of liquidity, which included cash and cash equivalents and unpledged investment securities AFS of approximately $732 million, which represents 15.31% of total assets, an increase of $149 million from December 31, 2020.
- Management’s Discussion and Analysis - COVID-19 (Coronavirus) Disclosure” for a discussion of how COVID-19 may impact liquidity risk.
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.