11 unchanged sentences
We continually model our NII and EVE positions with various interest rate scenarios and assumptions of future balance sheet composition.
−Removed: We utilize implied forward rates as its base case scenario which reflects market expectations for rate increases over the next 24 months.
−Removed: Presented below is the estimated impact on our NII and EVE position as of June 30, 2024, assuming a static balance sheet and instantaneous parallel shifts in interest rates:
+Added: We utilize implied forward rates in the base case scenario which reflects market expectations for rate changes over the next 24 months.
+Added: Presented below is the estimated impact on our NII and EVE position as of September 30, 2024, assuming a static balance sheet and instantaneous parallel shifts in interest rates.
+Added: As of September 30, 2024, we estimate the effects of holding higher cash balances on a static balance sheet had a moderately negative impact on NII volatility in the -100 bps and -200 bps rate scenarios, compared to prior quarters.
+Added: The Company plans to deploy this excess liquidity over the next several quarters to pay down higher cost deposits and fund loan growth, which is expected to benefit NII in future simulations.
% Change from Base Case for Instantaneous Parallel Changes in Rates
5 unchanged sentences
This gradual change is commonly referred to as a “rate ramp” and evenly allocates a change in interest rates over a specified time period.
−Removed: Presented below is the estimated impact on the Company’s NII and EVE position as of June 30, 2024, assuming a static balance sheet and gradual parallel shifts in interest rates:
+Added: Presented below is the estimated impact on the Company’s NII and EVE position as of September 30, 2024, assuming a static balance sheet and gradual parallel shifts in interest rates:
% Change from Base Case for Gradual Changes in Rates
6 unchanged sentences
Balance sheet strategies to achieve such objectives may include:
+Added: • Deploying excess liquidity to pay down higher-cost deposits and other wholesale borrowings, as well as to fund loan growth
• Increasing the proportion of low-duration or variable-rate loans to total loans, including organic growth in small business, construction or C&I lending, and declines in longer-term loan portfolios
5 unchanged sentences
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.