9 unchanged sentences
Our cash and cash equivalents are also subject to changes in short-term rates.
−Removed: The Federal Open Market Committee ("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.
−Removed: While it is generally expected that the FOMC will gradually decrease interest rates by the end of 2024, there remains a possibility that an elevated interest rate environment may persist for the foreseeable future.
+Added: The Federal Open Market Committee ("FOMC") decreased the federal funds target rate in September 2024 to a range of 4.75%-5.0%, the first rate cut in over four years, and further reduced interest rates by an additional 25 basis points in early November 2024.
+Added: Although the general market consensus is that interest rates will gradually decrease further over the near term, there remains a possibility 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.
1 unchanged sentence
Accordingly, the net effect has had and we expect may continue to have a negative impact on our consolidated financial statements.
−Removed: As of June 30, 2024, we had $62.0 million outstanding under our $100.0 million line of credit agreement.
+Added: In September and October 2024, we issued and sold Notes in an aggregate principal amount of $50 million.
+Added: The principal amounts of the Notes bear interest at a fixed rate of 8.75% per annum, payable semi-annually in arrears and maturing in September 2029.
Refer to Note 9 — Debt to the Consolidated Financial Statements included herein for additional information.
−Removed: Should we require additional liquidity from our line of credit, our borrowings are expected to be at variable rates of interest and would expose us to interest rate risk.
−Removed: 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 SOFR and margin in effect as of June 30, 2024, each quarter point of change in interest rates would result in a $0.3 million change in our annual interest expense.
+Added: Should we require additional liquidity, our borrowings are expected to be at then current market rates of interest and may expose us to interest rate risk.
+Added: Although any short-term borrowings 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.
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.
10 unchanged sentences
We are exposed to credit and liquidity risks associated with the financial institutions that hold our cash and cash equivalents, restricted cash, available-for-sale investment securities, settlement assets due from retail distributors, third-party payment processors and other partners that collect funds and fees from our customers, and amounts due from our issuing banks for fees collected on our behalf.
−Removed: 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
−Removed: 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: 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.
+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.