4 unchanged sentences
In particular, the Company’s financial results are sensitive to significant changes in the treasury yield curve, the Federal Funds rate, and the Wall Street Prime Index.
−Removed: The Company’s total interest income was $47.5 million for the three months ended March 31, 2024 and $174.4 million for the year ended December 31, 2023.
−Removed: As market interest rates that serve as reference indices for our variable rate loans and investment securities have continued to increase, our total interest income has grown.
−Removed: Our total interest expense was $20.8 million for the three months ended March 31, 2024 and $63.5 million for the year ended December 31, 2023.
+Added: The Company’s total interest income was $49.0 million for the three months ended June 30, 2024 and $174.4 million for the year ended December 31, 2023.
+Added: Our total interest expense was $19.9 million for the three months ended June 30, 2024 and $63.5 million for the year ended December 31, 2023.
As rates paid on borrowed funds are correlated with short-term interest rates, the cost associated with our borrowings generally increases in a rising rate environment.
−Removed: Overall, our net interest income was $26.7 million for the three months ended March 31, 2024 and $110.9 million for the year ended December 31, 2023.
+Added: Overall, our net interest income was $29.1 million for the three months ended June 30, 2024 and $110.9 million for the year ended December 31, 2023.
Economic value of equity (“EVE”) measures our long-term earnings exposure from changes in market rates of interest.
1 unchanged sentence
An increase in EVE due to a specified rate change indicates an improvement in the long-term earnings capacity of the balance sheet, assuming that the rate change remains in effect over the life of the current balance sheet.
−Removed: As of March 31, 2024, the Company carried a slightly higher balance of liabilities than assets that will reprice in the event that interest rates fall.
+Added: As of June 30, 2024, the Company carried a slightly higher balance of liabilities than assets that will reprice in the event that interest rates fall.
As such, we generally expect the Company to benefit from a declining rate environment.
Our policies and procedures provide management with guidelines for effective funds management, and we have established a measurement system for monitoring our net interest rate sensitivity position.
−Removed: This is overseen and adjusted as needed by our Management Asset Liability Committee (“MALCO”) on a monthly basis and our Director Asset Liability Committee (“ALCO”) on a quarterly basis.
+Added: This is overseen and adjusted as needed by our Management Asset Liability Committee on a monthly basis and our Director Asset Liability Committee on a quarterly basis.
We have historically managed our sensitivity position within our established guidelines.
4 unchanged sentences
EVE results are compared to previous periods and established policies on a quarterly basis.
−Removed: As of March 31, 2024, the overnight Federal Funds rate, the rate used in the interest rate shock scenarios listed below, was 5.33%.
+Added: As of June 30, 2024, the overnight Federal Funds rate (the rate used in the interest rate shock scenarios listed below) was 5.33%.
The scenarios presented assume that interest rates change instantaneously (“shock”) and that there are no significant changes in the structure of the Company’s balance sheet over the twelve months being measured.
−Removed: The following table summarizes the estimated effect on net interest income and EVE from changing interest rates as measured against a flat rate (no interest rate change) instantaneous parallel shock scenario over a twelve month period utilizing an interest sensitivity (GAP) analysis based on the Company’s specific mix of interest-earning assets and interest-bearing liabilities as of March 31, 2024 and December 31, 2023.
−Removed: March 31, 2024
+Added: Table 30 summarizes the estimated effect on net interest income and EVE from changing interest rates as measured against a flat rate (no interest rate change) instantaneous parallel shock scenario over a twelve month period utilizing an interest sensitivity (GAP) analysis based on the Company’s specific mix of interest-earning assets and interest-bearing liabilities as of June 30, 2024 and December 31, 2023.
+Added: Estimated Effect on Net Interest Income and EVE from Changing Interest Rates
+Added: June 30, 2024
December 31, 2023
17 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.