5 unchanged sentences
Interest rates
−Removed: While operating net interest income has become a more meaningful component to our consolidated operating results, we do not consider our cash and cash equivalents or our investment securities to be subject to material interest rate risk due to their short duration.
−Removed: However, the Federal Open Market Committee ("FOMC") decreased the federal funds target rate in March 2020 to a range of 0%-0.25%, which has impacted the amount of net interest income we earn.
−Removed: While it is widely expected that the FOMC will increase interest rates in 2022 to slow the effects of economic inflation tied to the COVID-19 pandemic, it is uncertain when or how many times interest rates will be
+Added: While operating net interest income has become a meaningful component to our consolidated operating results, we do not consider our investment portfolio to be subject to material interest rate risk since it is comprised predominantly of fixed rate securities.
+Added: The composition of our portfolio is price sensitive to rate changes, which can impact unrealized gains or losses in our portfolio.
+Added: However, we have the ability, liquidity and intent to hold these instruments until such securities in our portfolio recover their amortized cost bases, which may be at maturity.
+Added: Our cash and cash equivalents are also subject to changes in short-term rates.
+Added: The Federal Open Market Committee
+Added: ("FOMC") again increased the federal funds target rate in February 2023 to a range of 4.50%-4.75%, which will continue to impact the amount of net interest income we earn.
+Added: While it is expected that the FOMC may continue to maintain elevated 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 December 31, 2021, 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 revenue) and yields on our investment portfolio tend to lag interest rate increases as securities mature and proceeds are reinvested.
+Added: Accordingly, we expect the net effect to have a negative impact on our consolidated financial statements in 2023 compared to 2022.
+Added: As of December 31, 2022, we had $35.0 million outstanding under our $100.0 million line of credit agreement.
Refer to Note 11—Debt to the Consolidated Financial Statements included herein for additional information.
6 unchanged sentences
Inflation risks
−Removed: We do not believe that inflation has or will have a material effect on our business, financial condition or results of operations.
+Added: It is difficult to assess whether inflation has or will have a material effect on our business, financial condition or results of operations.
Nonetheless, if our borrowing rates were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through rate increases.
12 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 macro-economic uncertainties.
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.