12 unchanged sentences
The analysis holds the current balance sheet values constant and does not take into account management intervention.
−Removed: In addition, we assume certain correlation rates, often referred to as a “deposit beta,” for interest-bearing deposits, wherein the rates paid to customers change relative to changes in benchmark interest rates.
+Added: Additionally our simulation model incorporates various key assumptions, which we believe are reasonable, but may have an impact on the results such as:
+Added: (1) we assume certain correlation rates, often referred to as “deposit beta,” for interest-bearing deposits, wherein the rates paid to customers change relative to changes in benchmark interest rates, (2) cash flows and maturities of interest sensitive assets and liabilities, (3) re-pricing characteristics for market rate sensitive instruments, (4) prepayment rates and product mix of assets and liabilities, and (5) simulations do not contemplate any actions management may undertake in response to changes in interest rates.
+Added: Because of limitations in any approach used to measure interest rate risk, simulation results are not intended to forecast actual results driven by the effect of a change in market rates but to better plan and execute appropriate asset-liability management strategies and manage our interest rate risk.
+Added: The primary impact of inflation on operations is reflected in increasing operating costs and non-interest expense.
+Added: Our interest-bearing assets and liabilities are monetary in nature and changes in interest rates will impact our performance on net interest margin more than changes in the general rate of inflation.
The effect on net interest income over a 12-month time horizon due to hypothetical changes in market interest rates is presented in the table below.
In this interest rate shock simulation, as of the periods presented, interest rates have been adjusted by instantaneous parallel changes rather than in a ramp simulation, which applies interest rate changes over time.
−Removed: All rates, short-term and long-term, are changed by the same amount (e.g.
−Removed: plus or minus 100 basis points) resulting in the shape of the yield curve remaining unchanged.
+Added: All rates, short-term and long-term, are changed by the same amount (e.g., plus or minus 100 basis points) resulting in the shape of the yield curve remaining unchanged.
% Change in Net Interest Income
9 unchanged sentences
-100 0.3 % (0.3) % 3.5 % 2.8 %
−Removed: -200 (4.9) % N/A (1) 3.4 % N/A (1)
−Removed: -300 (10.5) % N/A (1) 3.6 % N/A (1)
−Removed: (1) Given the level of market interest rates, these scenarios were not considered to be meaningful as of December 31, 2021.
+Added: -200 0.7 % (4.9) % 6.4 % 3.4 %
+Added: -300 (0.9) % (10.5) % 8.0 % 3.6 %
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.