4 unchanged sentences
We seek to achieve consistent growth in net interest income and equity while managing volatility arising from shifts in market interest rates.
−Removed: We monitor its interest rate risk position using income simulation models and economic value of equity (“EVE”) sensitivity analysis that capture both short-term and long-term interest rate risk exposure.
+Added: We monitor the Company’s interest rate risk position using income simulation models and economic value of equity (“EVE”) sensitivity analysis that capture both short-term and long-term interest rate risk exposure.
Income simulation involves forecasting net interest income (“NII”) under a variety of interest rate scenarios.
7 unchanged sentences
% Change from Base Case for Instantaneous Parallel Changes in Rates
−Removed: Implied Forward Curve -25 Basis Points Base Implied Forward Curve Implied Forward Curve +100 Basis Points Implied Forward Curve +200 Basis Points
+Added: Implied Forward Curve -200 Basis Points Implied Forward Curve -100 Basis Points Base Implied Forward Curve Implied Forward Curve +100 Basis Points Implied Forward Curve +200 Basis Points
NII - Year 1 18.29 % 10.37 % N/A (7.90 %) (16.08 %)
4 unchanged sentences
Presented below is the estimated impact on our NII and EVE position as of December 31, 2022, assuming a static balance sheet and gradual parallel shifts in interest rates over a twelve-month period:
−Removed: % Change from Base Case for Gradual Parallel Changes in Rates
−Removed: Implied Forward Curve -25 Basis Points Base Implied Forward Curve Implied Forward Curve +100 Basis Points Implied Forward Curve +200 Basis Points
+Added: % Change from Base Case for Gradual Changes in Rates
+Added: Implied Forward Curve -200 Basis Points Implied Forward Curve -100 Basis Points Base Implied Forward Curve Implied Forward Curve +100 Basis Points Implied Forward Curve +200 Basis Points
NII - Year 1 8.01 % 4.26 % N/A (4.23 %) (8.17 %)
1 unchanged sentence
EVE 31.45 % 19.64 % N/A (18.22 %) (33.52 %)
+Added: In the Company’s supplementary model, it incorporates deposit betas ranging from 11% to 98% in up-rate scenarios related to its savings and money market non-maturity deposit products, which approximates actual deposit pricing experience in 2022.
+Added: Presented below are the estimated impacts on the Company’s NII and EVE position as of December 31, 2022, assuming a static balance sheet and instantaneous and gradual parallel shifts in interest rates:
+Added: % Change from Base Case for Instantaneous Parallel Changes in Rates
+Added: Implied Forward Curve -200 Basis Points Implied Forward Curve -100 Basis Points Base Implied Forward Curve Implied Forward Curve +100 Basis Points Implied Forward Curve +200 Basis Points
+Added: NII - Year 1 18.12 % 10.25 % N/A (7.00 %) (14.29 %)
+Added: NII - Year 2 44.68 % 39.63 % 30.31 % 21.74 % 12.21 %
+Added: EVE 33.44 % 21.29 % N/A (17.53 %) (32.66 %)
+Added: % Change from Base Case for Gradual Changes in Rates
+Added: Implied Forward Curve -200 Basis Points Implied Forward Curve -100 Basis Points Base Implied Forward Curve Implied Forward Curve +100 Basis Points Implied Forward Curve +200 Basis Points
+Added: NII - Year 1 7.66 % 4.06 % N/A (3.87 %) (7.40 %)
+Added: NII - Year 2 45.86 % 39.60 % 30.31 % 19.78 % 8.96 %
+Added: EVE 30.46 % 19.15 % N/A (17.60 %) (32.25 %)
The NII and EVE figures presented in both tables above are reflective of a static balance sheet, and do not incorporate either balance sheet growth or strategies to increase net interest income while managing volatility arising from shifts in market interest rates.
9 unchanged sentences
Financial Statements and Supplementary Data
−Removed: The consolidated financial statements and notes thereto required pursuant to this Item begin on page F-1 of this report.
+Added: The consolidated financial statements and notes thereto required pursuant to this Item begin on page F-1 of this Annual Report on Form 10-K.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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.