13 unchanged sentences
A gap is defined as the difference between the principal amount of assets and liabilities that reprice within a specified time period.
−Removed: The Company's cumulative one-year gap at March 31, 2024 was (19.87)% of total assets compared to (11.54)% of total assets at December 31, 2023.
+Added: The Company's cumulative one-year gap at June 30, 2024 was (14.78)% of total assets compared to (11.54)% of total assets at December 31, 2023.
Core deposits with non-contractual maturities are presented based upon historical patterns of balance attrition and pricing behavior, which are reviewed at least annually.
1 unchanged sentence
Mortgage prepayments are estimated by applying industry median projections of prepayment speeds to portfolio segments based on coupon range and loan age.
−Removed: A summary of the Company's static gap, as of March 31, 2024, is presented in the following table:
+Added: A summary of the Company's static gap, as of June 30, 2024, is presented in the following table:
0-90 90-365 1-5 5+
24 unchanged sentences
term rates gradually increase by two percentage points.
−Removed: The Company's modeling as of March 31, 2024 projects net interest income would increase by approximately 4.1% if short-term rates affected by FOMC actions fall gradually by two percentage points over the next year, and would increase by approximately 1.9% if short term rates gradually fall by one percentage point over the next year;
+Added: The Company's modeling as of June 30, 2024 projects net interest income would increase by approximately 3.6% if short-term rates affected by FOMC actions fall gradually by two percentage points over the next year, and would increase by approximately 2.1% if short term rates gradually fall by one percentage point over the next year;
net interest income would decrease by approximately 5.4% if rates rise gradually by two percentage points over the next year.
2 unchanged sentences
In year two, and assuming no additional movement in rates, the model forecasts that net interest income would be higher than that earned in the first year of a stable rate environment by 23.4% in the two percentage point falling-rate scenario, and higher by 20.4% in the one percentage point falling rate scenario;
−Removed: net interest income would be lower than that earned in a stable rate environment by 2.0% in a two percentage point rising rate scenario, when compared to the year-one base scenario.
+Added: net interest income would be higher than that earned in a stable rate environment by 1.9% in a two percentage point rising rate scenario, when compared to the year-one base scenario.
Each year two scenario is well within the ALCO's policy limit of a decrease of no more than 20% given a 2.0% move in interest rates, up or down.
−Removed: A summary of the Bank's interest rate risk simulation modeling, as of March 31, 2024 and December 31, 2023 is presented in the following table:
−Removed: Changes in Net Interest Income March 31, 2024 December 31, 2023
+Added: A summary of the Bank's interest rate risk simulation modeling, as of June 30, 2024 and December 31, 2023 is presented in the following table:
+Added: Changes in Net Interest Income June 30, 2024 December 31, 2023
Projected change if rates decrease by 1.0% 2.1% 2.0%
17 unchanged sentences
Frequently called interest rate derivatives, interest rate swaps, caps and floors have characteristics similar to securities but possess the advantages of customization of the risk-reward profile of the instrument, minimization of balance sheet leverage and improvement of liquidity.
−Removed: As of March 31, 2024, the Company was using interest rate swaps for interest rate risk management.
+Added: As of June 30, 2024, the Company was using interest rate swaps for interest rate risk management.
The Company engages an independent consultant to periodically review its interest rate risk position, as well as the effectiveness of simulation modeling and reasonableness of assumptions used.
−Removed: As of March 31, 2024, there were no significant differences between the views of the independent consultant and Management regarding the Company's interest rate risk exposure.
+Added: As of June 30, 2024, there were no significant differences between the views of the independent consultant and Management regarding the Company's interest rate risk exposure.
Management expects interest rates will increase slightly in the next year and believes that the current level of interest risk is acceptable.
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.