6 unchanged sentences
The asset and liability management function is under the guidance of ALCO with direction from the Board of Directors.
−Removed: The ALCO meets monthly to review, among other things, the sensitivity of the
−Removed: Company’s assets and liabilities to interest rate changes, local and national market conditions and rates.
+Added: The ALCO meets monthly to review, among other things, the sensitivity of the Company’s assets and liabilities to interest rate changes, local and national market conditions and rates.
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 June 30, 2021 and December 31, 2020.
+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, 2021 and December 31, 2020.
% Change in projected net interest income
Hypothetical shift in interest rates
−Removed: The change in the Company’s interest rate risk exposure from December 31, 2020 to June 30, 2021 was primarily due to a lengthening of the Company’s asset repricing schedule.
−Removed: In a rising rate scenario, net interest income decreases 1.02% from the current position as interest income from repricing assets is outweighed by the interest expense from repricing liabilities, predominantly the Company’s variable rate Subordinated Notes.
−Removed: In a decreasing rate scenario, net interest income decreases 3.07% from the current position as assets reprice to lower rates.
+Added: September 30,
+Added: The change in the Company’s interest rate risk exposure from December 31, 2020 to September 30, 2021 was primarily due to a reduction in liability funding costs.
+Added: As liabilities have matured, they have repriced to lower current rates.
+Added: In addition to lower funding costs, the Bank’s increase in security investments has increased the rate of return on excess funds.
+Added: This will cause the Company’s balance sheet to remain slightly asset sensitive over the next 12 months, where interest rate increases translate into higher net interest income.
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 June 30, 2021.
+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, 2021.
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.