4 unchanged sentences
The Company has an Asset/Liability Committee to communicate, coordinate and control all aspects involving interest rate risk management.
−Removed: The Asset/Liability Committee, which includes three members of our board of directors, establishes and monitors the volume, maturities, pricing and mix of assets and funding sources with the objective of managing assets and funding sources to provide results that are consistent with liquidity, growth, risk limits and profitability goals.
+Added: The Asset/Liability Committee establishes and monitors the volume, maturities, pricing and mix of assets and funding sources with the objective of managing assets and funding sources to provide results that are consistent with liquidity, growth, risk limits and profitability goals.
Adherence to relevant policies is monitored on an ongoing basis by the Asset/Liability Committee.
−Removed: The Company has a total cumulative gap in interest-earning assets and interest-bearing liabilities of 5.2% as of September 30, 2022, indicating that, overall, assets will reprice before liabilities during the expected life of the instruments.
−Removed: Cumulative gap is a useful measure to monitor balance sheet match-funding, yet economic value of equity and net interest income simulations, discussed below, are more useful in understanding potential impacts to earnings from a change in interest rates.
+Added: The Company has a total cumulative gap in interest-earning assets and interest-bearing liabilities of 5.8% as of March 31, 2023, indicating that, overall, over the expected life of the instruments, assets will reprice before liabilities.
The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are “interest rate sensitive.” An asset or liability is said to be interest rate sensitive within a specific time period if it will mature or reprice within that time period.
13 unchanged sentences
The Company regularly models various forecasted rate projections with non-parallel shifts that are reflective of potential current rate environment outcomes.
−Removed: Under these scenarios, the Company’s interest rate risk profile may increase in asset sensitivity, decrease in asset sensitivity, or depending on the scenario and timing of anticipated rate changes, may transition to a liability sensitive interest rate risk profile.
+Added: Under these scenarios, the Company’s interest rate risk profile may increase in liability sensitivity, decrease in liability sensitivity, or depending on the scenario and timing of anticipated rate changes, may transition back to an asset sensitive interest rate risk profile.
Regular, robust modeling of various interest rate outcomes allows the Company to properly assess and manage potential risks from various rate shifts.
−Removed: The table below sets forth an approximation of the Company’s NII sensitivity exposure for the 12-month periods ending September 30, 2023 and 2024 and the Company’s EVE sensitivity at September 30, 2022.
−Removed: The simulation uses projected repricing of assets and liabilities at September 30, 2022 on the basis of contractual maturities, anticipated repayments and scheduled rate adjustments.
+Added: The table below sets forth an approximation of the Company’s NII sensitivity exposure for the 12-month periods ending March 31, 2024 and 2025 and the Company’s EVE sensitivity at March 31, 2023.
+Added: The simulation uses projected repricing of assets and liabilities at March 31, 2023 on the basis of contractual maturities, anticipated repayments and scheduled rate adjustments.
Critical model assumptions such as loan and investment prepayment rates, deposit decay rates, changes in deposit pricing, both in amount and timing, relative to changes in market rates (commonly referred to as deposit betas and lags, respectively) and assumed replacement pricing can have a significant impact on interest income simulation.
5 unchanged sentences
Basis Point ("bp") Change in
−Removed: Interest Rates 12 Months Ending September 30, 2023 12 Months Ending September 30, 2024 As of September 30, 2022
+Added: Interest Rates 12 Months Ending March 31, 2024 12 Months Ending March 31, 2025 As of March 31, 2023
+400 (2.9)% (7.5)% (30.6)%
6 unchanged sentences
Rates are increased instantaneously at the beginning of the projection.
−Removed: The Company is slightly asset sensitive in the initial year, as the Company’s variable rate loan portfolio reprices the full amount of the assumed change in interest rates, while the retail savings and short-term retail certificates of deposits portfolio will reprice with an assumed beta.
−Removed: The Company is asset sensitive in the second year of the projection due to interest rates increasing or decreasing for the full year, the Company’s loan portfolio continuing to reprice, and also due to the other assumptions used in the analysis as noted previously.
+Added: The Company's asset/liability profile is liability sensitive in both years one and two from a net interest income perspective.
+Added: The Company had recent interest rate increases where new and existing deposits are repricing more rapidly than the company's total loan and lease portfolio.
+Added: The Company’s variable rate loan portfolio reprices the full amount of the assumed change in interest rates, while the retail savings and short-term retail certificates of deposits portfolio will reprice with an assumed beta.
Interest rates do not normally move all at once or evenly over time, but management believes that the analysis is useful to understanding the potential direction and magnitude of net interest income changes due to changing interest rates.
4 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.