13 unchanged sentences
Interest rate sensitivity is a measure of the difference between amounts of interest-earning assets and interest-bearing liabilities which either reprice or mature within a given period of time.
−Removed: The difference, or the interest rate repricing "gap,"
−Removed: provides an indication of the extent to which an institution's interest rate spread will be affected by changes in interest rates.
+Added: The difference, or the interest rate repricing “gap,” provides an indication of the extent to which an institution's interest rate spread will be affected by changes in interest rates.
A gap is considered positive when the amount of interest-rate sensitive assets exceeds the amount of interest-rate sensitive liabilities repricing during the same period, and is considered negative when the amount of interest-rate sensitive liabilities exceeds the amount of interest-rate sensitive assets during the same period.
1 unchanged sentence
During a period of falling interest rates, the opposite would be true.
−Removed: As of June 30, 2021, Great Southern's interest rate risk models indicate that, generally, rising interest rates are expected to have a positive impact on the Company's net interest income, while declining interest rates are expected to have a negative impact on net interest income.
+Added: As of September 30, 2021, Great Southern's interest rate risk models indicate that, generally, rising interest rates are expected to have a positive impact on the Company's net interest income, while declining interest rates are expected to have a negative impact on net interest income.
We model various interest rate scenarios for rising and falling rates, including both parallel and non-parallel shifts in rates.
2 unchanged sentences
In the subsequent months we expect that the net interest margin would stabilize and begin to improve, as renewal interest rates on maturing time deposits are expected to decrease compared to the current rates paid on those products.
−Removed: Subsequent to June 30, 2021, cumulative time deposit maturities are as follows:
+Added: Subsequent to September 30, 2021, cumulative time deposit maturities are as follows:
within three months --$274 million;
1 unchanged sentence
and within twelve months -- $795 million.
−Removed: At June 30, 2021, the weighted average interest rates on these various cumulative maturities were 0.70%, 0.71% and 0.69%, respectively.
+Added: At September 30, 2021, the weighted average interest rates on these various cumulative maturities were 0.61%, 0.61% and 0.60%, respectively.
The current level and shape of the interest rate yield curve poses challenges for interest rate risk management.
5 unchanged sentences
In response to the COVID-19 pandemic, the FRB decreased interest rates on two occasions in March 2020, a 0.50% decrease on March 3rd and a 1.00% decrease on March 16th.
−Removed: At June 30, 2021, the Federal Funds rate stood at 0.25%.
−Removed: A substantial portion of Great Southern’s loan portfolio ($1.94 billion at June 30, 2021) is tied to the one-month or three-month LIBOR index and will be subject to adjustment at least once within 90 days after June 30, 2021.
−Removed: Of these loans, $1.93 billion had interest rate floors.
−Removed: Great Southern also has a portfolio of loans ($254 million at June 30, 2021) tied to a "prime rate"
−Removed: of interest and will adjust immediately with changes to the “prime rate” of interest.
+Added: At September 30, 2021, the Federal Funds rate stood at 0.25%.
+Added: A substantial portion of Great Southern’s loan portfolio ($1.80 billion at September 30, 2021) is tied to the one-month or three-month LIBOR index and will be subject to adjustment at least once within 90 days after September 30, 2021.
+Added: Of these loans, $1.78 billion had interest rate floors at various rates.
+Added: Great Southern also has a portfolio of loans ($533.8 million at September 30, 2021) tied to a “prime rate” of interest and will adjust immediately with changes to the “prime rate” of interest.
+Added: Of these loans, $503.6 million had interest rate floors at various rates.
+Added: At September 30, 2021, $1.3 billion in LIBOR and “prime rate” loans were at their floor rate.
+Added: If rates were to increase 25 basis points, loans of $284.6 million would move above their floor rate.
+Added: If rates were to increase 50 basis points, an additional $344.8 million in loans would move above their floor rate.
During 2020, we experienced some compression of our net interest margin due to Federal Fund rate cuts totaling 1.50%.
Margin compression primarily resulted from generally slower changing average interest rates on deposits and borrowings and lower yields on loans and other interest-earning assets.
−Removed: LIBOR interest rates decreased further in April and May of 2020, putting pressure on loan yields during most of 2020 and into 2021, and strong pricing competition for loans and deposits remains in most of our markets.
+Added: LIBOR interest rates decreased further in April and May of 2020, putting pressure on loan yields during most of 2020 and 2021, and strong pricing competition for loans and deposits remains in most of our markets.
Interest rate risk exposure estimates (the sensitivity gap) are not exact measures of an institution’s actual interest rate risk.
32 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.