9 unchanged sentences
Our cash and cash equivalents are also subject to changes in short-term rates.
−Removed: The Federal Open Market Committee
−Removed: ("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.
−Removed: 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.
+Added: The FOMC increased the federal funds target rate in July 2023 to a range of 5.25%-5.50%, which will continue to impact the amount of net interest income we earn.
+Added: While it is expected that the FOMC will decrease interest rates during 2024, we expect that an elevated interest rate environment may persist for the foreseeable future.
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.
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.
−Removed: Accordingly, we expect the net effect to have a negative impact on our consolidated financial statements in 2023 compared to 2022.
+Added: Accordingly, the net effect has had and we expect may continue to have a negative impact on our consolidated financial statements.
As of December 31, 2023, we had $61.0 million outstanding under our $100.0 million line of credit agreement.
2 unchanged sentences
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 December 31, 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 SOFR and margin in effect as of December 31, 2023, 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.
+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.
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.
5 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.