17 unchanged sentences
During a period of falling interest rates, the opposite would be true.
−Removed: As of September 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.
+Added: As of March 31, 2023, 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.
5 unchanged sentences
Margin compression primarily resulted from changes in the asset mix, mainly the addition of lower-yielding assets and the issuance of subordinated notes during 2020 and the net interest margin remained lower than our historical average in 2021.
−Removed: 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: Since March 2022, market interest rates have increased fairly rapidly and are expected to continue to increase through the remainder of 2022 and the beginning of 2023.
−Removed: Market interest rate increases are expected to result in increases to loan yields, net interest income and net interest margin.
−Removed: Subsequent to September 30, 2022, cumulative time deposit maturities are as follows:
+Added: LIBOR/SOFR interest rates decreased significantly 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 remained in most of our markets.
+Added: Since March 2022, market interest rates have increased fairly rapidly and may increase further in the first half of 2023.
+Added: This increased loan yields and expanded our net interest income and net interest margin in the latter half of 2022 and the first three months of 2023.
+Added: While market interest rate increases are expected to result in increases to loan yields, we expect that much of this benefit will be offset by increased funding costs, including changes in the funding mix, as seen in the first quarter of 2023.
+Added: In the first three months of 2023, competition for deposits was very intense, resulting in significant increases in rates paid on various deposit types.
+Added: Subsequent to March 31, 2023, cumulative time deposit maturities are as follows:
within three months -- $511 million;
1 unchanged sentence
and within twelve months -- $1.04 billion.
−Removed: At September 30, 2022, the weighted average interest rates on these various cumulative maturities were 1.11%, 1.18% and 1.53%, respectively.
+Added: At March 31, 2023, the weighted average interest rates on these various cumulative maturities were 2.08%, 2.17% and 2.44%, respectively.
+Added: Based on time deposit market rates in April 2023, replacement rates for these maturing time deposits are likely to be near or exceed 4.00%.
The current level and shape of the interest rate yield curve poses challenges for interest rate risk management.
1 unchanged sentence
This was the first rate increase since September 29, 2006.
−Removed: The FRB also implemented rate increases of 0.25% on eight additional occasions beginning December 14, 2016 and through December 31, 2018, with the Federal Funds rate reaching as high as 2.50%.
+Added: The FRB also implemented rate change increases of 0.25% on eight additional occasions beginning December 14, 2016 and through December 31, 2018, with the Federal Funds rate reaching as high as 2.50%.
After December 2018, the FRB paused its rate increases and, in July, September and October 2019, implemented rate decreases of 0.25% on each of those occasions.
1 unchanged sentence
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: In 2022, the FRB implemented rate increases of 0.25%, 0.50%, 0.75%, 0.75%, 0.75% and 0.75% in March, May, June, July, September and November 2022, respectively.
−Removed: Financial markets are currently anticipating continued increases to market interest rates in 2022 and into the beginning of 2023.
−Removed: If interest rate increases do occur, we anticipate that our net interest income and net interest margin will be positively impacted.
−Removed: At September 30, 2022, the Federal Funds rate stood at 3.25% and on November 2, 2022 the Federal Funds rate was increased to 4.00%.
−Removed: A substantial portion of Great Southern’s loan portfolio ($1.08 billion at September 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 September 30, 2022.
−Removed: Of these loans, $1.07 billion had interest rate floors.
−Removed: Great Southern’s loan portfolio also includes loans ($357 million at September 30, 2022) tied to various SOFR indexes that will be subject to adjustment at least once within 90 days after September 30, 2022.
+Added: At December 31, 2021, the Federal Funds rate was 0.25%.
+Added: In 2022, the FRB implemented rate increases of 0.25%, 0.50%, 0.75%, 0.75%, 0.75%, 0.75% and 0.50% in March, May, June, July, September, November and December 2022, respectively.
+Added: At December 31, 2022, the Federal Funds rate was 4.50%.
+Added: In 2023, the FRB implemented rate increases of 0.25% and 0.25% in February and March 2023, respectively.
+Added: At March 31, 2023 the Federal Funds rate was 5.00%.
+Added: Financial markets expect the possibility of further increases in Federal Funds interest rates in the first half of 2023, with 0.25-0.50% of additional cumulative rate hikes currently anticipated.
+Added: A substantial portion of Great Southern’s loan portfolio ($868.8 million at March 31, 2023) 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, 2023.
Of these loans, $868.5 million had interest rate floors.
−Removed: Great Southern also has a portfolio of loans ($724 million at September 30, 2022) tied to a “prime rate” of interest that will adjust immediately or within 90 days of a change to the “prime rate” of interest.
+Added: Great Southern’s loan portfolio also includes loans ($693.4 million at March 31, 2023) tied to various SOFR indexes that will be subject to adjustment at least once within 90 days after March 31, 2023.
+Added: Of these loans, $693.4 million had interest rate floors.
+Added: Great Southern also has a portfolio of loans ($738.6 million at March 31, 2023) tied to a “prime rate” of interest that will adjust immediately or within 90 days of a change to the “prime rate” of interest.
Of these loans, $725.8 million had interest rate floors at various rates.
−Removed: At September 30, 2022, nearly all of these LIBOR, SOFR 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.
+Added: Great Southern also has a portfolio of loans ($6.7 million at March 31, 2023) tied to an AMERIBOR index that will adjust immediately or within 90 days of a change to the “prime rate” of interest.
+Added: Of these loans, $6.7 million had interest rate floors at various rates.
+Added: At March 31, 2023, nearly all of these LIBOR/SOFR 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.
45 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.