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 June 30, 2023 and December 31, 2022.
+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 September 30, 2023 and December 31, 2022.
% Change in projected net interest income
−Removed: Hypothetical shift in interest rates June 30, December 31,
+Added: Hypothetical shift in interest rates September 30, December 31,
(bps) 2023 2022
3 unchanged sentences
(200) 4.65 % 5.80 %
−Removed: The change in the Company’s interest rate risk exposure from December 31, 2022 to June 30, 2023 was primarily due to a change in the profile of the Company’s funding sources.
−Removed: At December 31, 2022, the Company had higher balances in customer deposit accounts, including a seasonal spike in certain public funds' account balances.
−Removed: This funding source reprices immediately as interest rates change.
−Removed: Since December 31, 2022, there has been a shift from deposits that reprice immediately as the federal funds rate changes to more fixed rate funding sources, including time deposits and FHLB advances.
−Removed: A change in the mix of funding sources translates into lower projected net interest income growth when compared to December 31, 2022.
−Removed: The Company’s balance sheet is liability sensitive, where interest rate decreases translate into higher net interest income.
+Added: The change in the Company’s interest rate risk exposure from December 31, 2022 to September 30, 2023 was due to higher rates on interest bearing assets projected to reprice in the next 12 months and projected repricing speeds on interest bearing assets and liabilities.
+Added: In an immediate and sustained shock, interest bearing assets and liabilities are projected to reprice at relatively the same pace.
+Added: In down rate scenarios, interest bearing assets are projected to reprice faster than interest bearing liabilities causing increased balance sheet exposure in a falling rate market.
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.
1 unchanged sentence
Actual results may be significantly different than our projections due to several factors, including the timing and frequency of rate changes, market conditions and the shape of the yield curve.
−Removed: The computations of interest rate risk shown above do not include actions that management may
−Removed: undertake to manage the risks in response to anticipated changes in interest rates and actual results may also differ due to any actions taken in response to the changing rates.
+Added: The computations of interest rate risk shown above do not include actions that management may undertake to manage the risks in response to anticipated changes in interest rates and actual results may also differ due to any actions taken in response to the changing rates.
Effects of Inflation
4 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 June 30, 2023.
+Added: In the opinion of management, inflation did not have a significant effect on the Company’s operations for the three months ended September 30, 2023.
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.