6 unchanged sentences
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 5.0% as of June 30, 2023, indicating that, overall, over the expected life of the instruments, assets will reprice before liabilities.
+Added: The Company has a total cumulative gap in interest-earning assets and interest-bearing liabilities of 4.7% as of September 30, 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.
5 unchanged sentences
The results show a theoretical change in the economic value of shareholders’ equity as interest rates change.
+Added: The NII simulation provides a short-term view of interest rate risk as it analyzes impact on net interest income over the next 12 and 24 months from instantaneous parallel rate shocks on a static balance sheet.
EVE and NII simulations are completed regularly and presented to the Asset/Liability Committee.
8 unchanged sentences
The Company believes that regular modeling of various interest rate outcomes allows it to 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 June 30, 2024 and 2025, and the Company’s EVE sensitivity at June 30, 2023.
−Removed: The simulation uses projected repricing of assets and liabilities at June 30, 2023, 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 September 30, 2024 and 2025, and the Company’s EVE sensitivity at September 30, 2023.
+Added: The simulation uses projected repricing of assets and liabilities at September 30, 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 June 30, 2024 12 Months Ending June 30, 2025 As of June 30, 2023
+Added: Interest Rates 12 Months Ending September 30, 2024 12 Months Ending September 30, 2025 As of September 30, 2023
+400 (3.1 %) (3.6 %) (28.9 %)
6 unchanged sentences
Rates are increased instantaneously at the beginning of the projection.
−Removed: The Company's asset/liability profile is slightly asset sensitive in year one, 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 slightly liability sensitive in year two from a net interest income perspective as the company's interest rate increases on new and existing deposits are repricing more rapidly than the company's total loan and lease portfolio.
+Added: The Company's asset/liability profile is slightly 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.