9 unchanged sentences
Our cash and cash equivalents are subject to changes in short-term rates.
−Removed: The Federal Open Market Committee ("FOMC") again increased the federal funds target rate in June 2022 to a range of 2.25%-2.50%, which will continue to impact the amount of net interest income we earn.
−Removed: While it is expected that the FOMC will continue to increase interest rates throughout 2022 to slow the effects of economic inflation, it is uncertain when or how many times interest rates will be increased.
+Added: The Federal Open Market Committee ("FOMC") again increased the federal funds target rate in September 2022 to a range of 3.75%-4.00%, which will continue to impact the amount of net interest income we earn.
+Added: While it is expected that the FOMC may continue to increase interest rates until the effects of economic inflation are abated, it is uncertain when or how many times interest rates will be increased.
The FOMC's decision-making policies for short-term interest rates will continue to impact the amount of net interest income we earn in the future.
−Removed: As of June 30, 2022, we had no balances outstanding under our $100.0 million line of credit agreement.
+Added: In addition, certain of our BaaS partner arrangements allow for the BaaS partner to share in a significant portion of the interest earned from accountholder deposits (which are recorded as a reduction of BaaS partner management fees, a component of cardholder and other fees).
+Added: As a result, despite an environment of rising interest rates, the net effect on our consolidated financial statements will be lesser in magnitude.
+Added: As of September 30, 2022, we had no balances outstanding under our $100.0 million line of credit agreement.
Refer to Note 9 — Debt to the Consolidated Financial Statements included herein for additional information.
1 unchanged sentence
Although any short-term borrowings under our revolving credit facility would likely be insensitive to interest rate changes, interest expense on short-term borrowings will increase and decrease with changes in the underlying short-term interest rates.
−Removed: For example, assuming our credit agreement is drawn up to its maximum borrowing capacity of $100.0 million, based on the applicable LIBOR and margin in effect as of June 30, 2022, each quarter point of change in interest rates would result in a $0.3 million change in our annual interest expense.
+Added: For example, assuming our credit agreement is drawn up to its maximum borrowing capacity of $100.0 million, based on the applicable LIBOR and margin in effect as of September 30, 2022, each quarter point of change in interest rates would result in a $0.3 million change in our annual interest expense.
We actively monitor our interest rate exposure and our objective is to reduce, where we deem appropriate to do so, fluctuations in earnings and cash flows associated with changes in interest rates.
11 unchanged sentences
We manage the credit and liquidity risks associated with our cash and cash equivalents, available-for-sale investment securities, loans and amounts due from issuing banks by maintaining an investment policy that restricts our correspondent banking relationships to approved, well capitalized institutions and restricts investments to highly liquid, low credit risk assets.
−Removed: Our policy has limits related to liquidity ratios, the concentration that we may have with a single institution or issuer and effective maturity dates as well as restrictions on the type of assets that we may invest in.
−Removed: The management Asset Liability Committee is responsible for monitoring compliance with our Capital
−Removed: Asset Liability Management policy and related limits on an ongoing basis, and reports regularly to the risk committee of our Board of Directors.
+Added: Our policy has limits related to liquidity ratios, the concentration that we may have with
+Added: a single institution or issuer and effective maturity dates as well as restrictions on the type of assets that we may invest in.
+Added: The management Asset Liability Committee is responsible for monitoring compliance with our Capital Asset Liability Management policy and related limits on an ongoing basis, and reports regularly to the risk committee of our Board of Directors.
Our exposure to credit risk associated with settlement assets is mitigated due to the short time period, currently an average of two days that settlement assets are outstanding.
2 unchanged sentences
Our management's Enterprise Risk Management Committee is responsible for monitoring partner exposure and assigning credit limits and reports regularly to the risk committee of our Board of Directors.
−Removed: We continue to monitor our exposure to credit risk with our retail distributors and other business partners in light of the COVID-19 pandemic.
+Added: We continue to monitor our exposure to credit risk with our retail distributors and other business partners in light of the current economic environment.
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.