6 unchanged sentences
The asset and liability management function is under the guidance of the ALCO with direction from the Board of Directors.
−Removed: The ALCO meets monthly to review, the sensitivity of the Company’s assets and liabilities to interest rate changes and to discuss local and national market conditions.
+Added: The ALCO meets quarterly to review the sensitivity of the Company’s assets and liabilities to interest rate changes and to discuss local and national market conditions.
The ALCO also reviews the liquidity, capital, deposit mix, loan mix and investment positions of the Company.
5 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 September 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 March 31, 2024 and December 31, 2023.
% Change in projected net interest income
−Removed: Hypothetical shift in interest rates September 30, December 31,
+Added: Hypothetical shift in interest rates March 31, December 31,
(bps) 2024 2023
3 unchanged sentences
(200) 0.64 % 0.49 %
−Removed: 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: The change in the Company’s interest rate risk exposure from December 31, 2023 to March 31, 2024 was due to moderately higher rates on interest bearing assets projected to reprice in the next 12 months and projected repricing speeds on interest bearing assets and liabilities.
In an immediate and sustained shock, interest bearing assets and liabilities are projected to reprice at relatively the same pace.
−Removed: 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.
+Added: In down rate scenarios, interest bearing assets are projected to reprice moderately faster than interest bearing liabilities providing slightly more net interest income 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.
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 September 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 March 31, 2024.
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.