12 unchanged sentences
Accordingly, effective risk management that maintains interest rate risk at prudent levels is essential to our safety and soundness.
+Added: MERCANTILE BANK CORPORATION
Evaluating the exposure to changes in interest rates includes assessing both the adequacy of the process used to control interest rate risk and the quantitative level of exposure.
5 unchanged sentences
MERCANTILE BANK CORPORATION
−Removed: The following table depicts our GAP position as of June 30, 2022:
+Added: The following table depicts our GAP position as of September 30, 2022:
Commercial loans (1)
34 unchanged sentences
Floating rate loans that are currently at interest rate floors are treated as fixed rate loans and are reflected using maturity date and not repricing frequency.
−Removed: Mortgage-backed securities are categorized by average life calculations based upon prepayment trends as of June 30, 2022.
+Added: Mortgage-backed securities are categorized by average life calculations based upon prepayment trends as of September 30, 2022.
MERCANTILE BANK CORPORATION
8 unchanged sentences
Actual results will differ from simulated results due to timing, magnitude, and frequency of interest rate changes and changes in market conditions and our strategies, among other factors.
−Removed: We conducted multiple simulations as of June 30, 2022, in which it was assumed that changes in market interest rates occurred ranging from up 300 basis points to down 200 basis points in equal quarterly instalments over the next twelve months.
−Removed: The following table reflects the suggested dollar and percentage changes in net interest income over the next twelve months in comparison to the $140 million in net interest income projected using our balance sheet amounts and anticipated replacement rates as of June 30, 2022.
+Added: We conducted multiple simulations as of September 30, 2022, in which it was assumed that changes in market interest rates occurred ranging from up 300 basis points to down 300 basis points in equal quarterly instalments over the next twelve months.
+Added: The following table reflects the suggested dollar and percentage changes in net interest income over the next twelve months in comparison to the $197 million in net interest income projected using our balance sheet amounts and anticipated replacement rates as of September 30, 2022.
The resulting estimates are generally within our policy parameters established to manage and monitor interest rate risk.
1 unchanged sentence
Percent Change
+Added: Interest Rate Scenario
Interest Income
Interest Income
−Removed: Interest Rate Scenario
Interest rates down 300 basis points
Interest rates down 200 basis points
+Added: Interest rates down 100 basis points
Interest rates up 100 basis points
11 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.