5 unchanged sentences
The principal objective of the Company’s asset and liability management function is to evaluate the interest rate risk within the balance sheet and pursue a controlled assumption of interest rate risk while maximizing earnings and preserving adequate levels of liquidity and capital.
−Removed: The asset and liability management function is under the guidance of the ALCO with direction from the Board of Directors.
−Removed: 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.
−Removed: The ALCO also reviews the liquidity, capital, deposit mix, loan mix and investment positions of the Company.
+Added: The asset and liability management function is under the guidance of the Asset Liability Committee from direction of the Board of Directors.
+Added: The Asset Liability Committee meets quarterly to review the sensitivity of the Company’s assets and liabilities to interest rate changes and local and national market conditions.
+Added: The Asset Liability Committee also reviews the liquidity, capital, deposit mix, loan mix, and investment positions of the Company.
Instantaneous parallel rate shift scenarios are modeled and utilized to evaluate risk and establish exposure limits for acceptable changes in net interest margin.
4 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, 2025 and December 31, 2024.
+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 for the next 12 months based on the interest rate risk model at June 30, 2025 and December 31, 2024.
% 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) 2025 2024
3 unchanged sentences
(200) (1.97) % (0.38) %
−Removed: The change in the Company’s interest rate risk exposure from December 31, 2024 to March 31, 2025 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.
−Removed: In an immediate and sustained shock, interest bearing assets and liabilities are projected to reprice at relatively the same pace.
+Added: The Company’s interest rate risk position is relatively neutral as of June 30, 2025.
+Added: In an immediate and sustained shock, in up rate scenarios, interest bearing assets are projected to reprice moderately slower than interest bearing liabilities providing slightly less 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.
Many assumptions are used to calculate the impact of interest rate fluctuations.
−Removed: 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.
+Added: Actual results may be significantly different than these projections due to several factors, including the timing and frequency of rate changes, market conditions, and the shape of the yield curve.
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.
1 unchanged sentence
The effects of inflation on financial institutions are different from the effects on other commercial enterprises since financial institutions make few significant capital or inventory expenditures, which are directly affected by changing prices.
−Removed: Because bank assets and liabilities are virtually all monetary in nature, inflation does not affect a financial institution as much as do changes in interest rates.
+Added: Because bank assets and liabilities are virtually all monetary in nature, inflation does not affect a financial institution as
+Added: much as do changes in interest rates.
The general level of inflation does underlie the general level of most interest rates, but interest rates do not increase at the rate of inflation as do prices of goods and services.
1 unchanged sentence
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, 2025.
+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, 2025.
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.