14 unchanged sentences
The impact of changes in interest rates on this calculation is analyzed for the risk to our future earnings and is used in conjunction with the analyses on net interest income.
−Removed: The table below illustrates the impact of an immediate and sustained 200 and 100 basis point increase and a 200 and 100 basis point decrease in interest rates on net interest income based on the interest rate risk model at March 31, 2022 and December 31, 2021.
+Added: The table below illustrates the impact of an immediate and sustained 200 and 100 basis point increase and a 200 and 100 basis point decrease in interest rates on net interest income based on the interest rate risk model at June 30, 2022 and December 31, 2021.
% Change in projected net interest income
−Removed: Hypothetical shift in interest rates March 31, December 31,
+Added: Hypothetical shift in interest rates June 30, December 31,
(bps) 2022 2021
3 unchanged sentences
(200) (4.65) % (4.02) %
−Removed: The change in the Company’s interest rate risk exposure from December 31, 2021 to March 31, 2022 was primarily due to a decrease in Federal funds sold and interest bearing deposits in other financial institutions.
−Removed: This will cause the Company’s balance sheet to become less asset sensitive.
+Added: The change in the Company’s interest rate risk exposure from December 31, 2021 to June 30, 2022 was primarily due to a change in the profile of the Company’s earning assets.
+Added: At December 31, 2021, the Company had significant balances in overnight Federal funds sold as the Company had greater liquidity due to higher balances in customer deposit accounts, including a seasonal spike in certain public funds customer’s account balances.
+Added: This type of earning asset reprices immediately as interest rates change.
+Added: Since December 31, 2021, the balances in Federal funds sold have reduced significantly, in large measure due to funding the significant growth in loans during the first six months of 2022.
Management believes the change in projected net interest income from interest rate shifts of up 200 bps and down 200 bps is an acceptable level of interest rate risk.
8 unchanged sentences
Inflation does have an impact on the growth of total assets in the banking industry, often resulting in a need to increase capital at higher than normal rates to maintain an appropriate capital to asset ratio.
−Removed: In the opinion of management, inflation did not have a significant effect on the Company’s operations for the three months ended March 31, 2022.
+Added: In the opinion of management, inflation did not have a significant effect on the Company’s operations for the three months ended June 30, 2022.
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.