17 unchanged sentences
During a period of falling interest rates, the opposite would be true.
−Removed: As of March 31, 2022, 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 June 30, 2022, 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.
6 unchanged sentences
LIBOR interest rates decreased in 2020 and remained very low in 2021 and into the first three months of 2022, putting pressure on loan yields, and strong pricing competition for loans and deposits remains in most of our markets.
−Removed: Subsequent to March 31, 2022, cumulative time deposit maturities are as follows:
+Added: Since March 2022, market interest rates have increased fairly rapidly and are expected to continue to increase through the remainder of 2022.
+Added: Market interest rate increases are expected to result in increases to loan yields, net interest income and net interest margin.
+Added: Subsequent to June 30, 2022, cumulative time deposit maturities are as follows:
within three months — $258 million;
1 unchanged sentence
and within twelve months — $873 million.
−Removed: At March 31, 2022, the weighted average interest rates on these various cumulative maturities were 0.45%, 0.49% and 0.52%, respectively.
+Added: At June 30, 2022, the weighted average interest rates on these various cumulative maturities were 0.48%, 0.79% and 0.75%, 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: On March 17, 2022, the FRB implemented an increase of 0.25%.
−Removed: Financial markets are currently anticipating aggressive increases to market interest rates in 2022.
−Removed: If aggressive interest rate increases do occur, we anticipate that our net interest income and net interest margin will be positively impacted.
−Removed: At March 31, 2022, the Federal Funds rate stood at 0.50%.
−Removed: A substantial portion of Great Southern’s loan portfolio ($1.31 billion at March 31, 2022) is tied to the one-month or three-month LIBOR index and will be subject to adjustment at least once within 90 days after March 31, 2022.
+Added: In 2022, the FRB implemented rate increases of 0.25%, 0.50%, 0.75% and 0.75% in March, May, June and July 2022, respectively.
+Added: Financial markets are currently anticipating continued increases to market interest rates in 2022.
+Added: If interest rate increases do occur, we anticipate that our net interest income and net interest margin will be positively impacted.
+Added: At June 30, 2022, the Federal Funds rate stood at 1.75%.
+Added: A substantial portion of Great Southern’s loan portfolio ($1.24 billion at June 30, 2022) 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, 2022.
Of these loans, $1.23 billion had interest rate floors at various rates.
−Removed: Great Southern also has a portfolio of loans ($613 million at March 31, 2022) tied to a “prime rate” of interest and will adjust immediately with changes to the “prime rate” of interest.
+Added: Great Southern also has a portfolio of loans ($693 million at June 30, 2022) tied to a “prime rate” of interest and will adjust immediately with changes to the “prime rate” of interest.
Of these loans, $596 million had interest rate floors at various rates.
−Removed: At March 31, 2022, $800 million in LIBOR and “prime rate” loans were at their floor rate.
−Removed: If interest rates were to increase 50 basis points, approximately $460 million of these loans would move above their floor rate.
+Added: At June 30, 2022, nearly all of these LIBOR and “prime rate” loans had fully-indexed rates that were at or above their floor rate and so are expected to move fully with future market interest rate increases.
Interest rate risk exposure estimates (the sensitivity gap) are not exact measures of an institution’s actual interest rate risk.
30 unchanged sentences
The Company received a payment of $45.9 million from its swap counterparty as a result of this termination.
−Removed: In February 2022, the Company entered into an interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans.
+Added: In March 2022, the Company entered into another interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans.
The notional amount of the swap is $300 million with an effective date of March 1, 2022 and a termination date of March 1, 2024.
2 unchanged sentences
The initial floating rate of interest was set at 0.24143%.
−Removed: Therefore, in
−Removed: the near term, the Company will receive net interest settlements which will be recorded as loan interest income, to the extent that the fixed rate of interest continues to exceed one-month USD-LIBOR.
+Added: The Company will receive net interest settlements which will be recorded as loan interest income, to the extent that the fixed rate of interest exceeds one-month USD-LIBOR.
If USD-LIBOR exceeds the fixed rate of interest in future periods, the Company will be required to pay net settlements to the counterparty and will record those net payments as a reduction of interest income on loans.
−Removed: The Company’s interest rate derivatives and hedging activities are discussed further in Note 16 of the Notes to Consolidated Financial Statements contained in this report.
+Added: In July 2022, the Company entered into two interest rate swap transactions as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans.
+Added: The notional amount of each swap is $200 million with an effective date of May 1 2023 and a termination date of May 1, 2028.
+Added: Under the terms of one swap, beginning in May 2023, the Company will receive a fixed rate of interest of 2.628% and will pay a floating rate of interest equal to one-month USD-SOFR OIS.
+Added: Under the terms of the other swap, beginning in May 2023, the Company will receive a fixed rate of interest of 5.725% and will pay a floating rate of interest equal to one-month USD-Prime.
+Added: In each case, the floating rate will be reset monthly and net settlements of interest due to/from the counterparty will also occur monthly.
+Added: To the extent the fixed rate of interest exceeds the floating rate of interest, the Company will receive net interest settlements, which will be recorded as loan interest income.
+Added: If the floating rate of interest exceeds the fixed rate of interest, the Company will be required to pay net settlements to the counterparty and will record those net payments as a reduction of interest income on loans.
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.