12 unchanged sentences
We manage the available-for-sale investment securities portfolio while maintaining a balance between risk and return.
−Removed: The Company's funding strategy is to grow deposits while we efficiently supplement using wholesale borrowings.
+Added: The Company's funding strategy is to grow core deposits while we efficiently supplement using wholesale borrowings.
We estimate the sensitivity of our net interest income to changes in market interest rates using an interest rate simulation model that includes assumptions related to the level of balance sheet growth, deposit repricing characteristics and the rate of prepayments for multiple interest rate change scenarios.
1 unchanged sentence
Effective interest rate risk management seeks to ensure both assets and liabilities respond to changes in interest rates within an acceptable timeframe, minimizing the impact of interest rate changes on net interest income and capital.
−Removed: Interest rate sensitivity is measured as the difference between the volume of assets and liabilities, at a point in time, which are subject to repricing at various time horizons, known as interest rate sensitivity gaps.
+Added: Interest rate sensitivity is measured as the difference between the volume of assets and liabilities, at a point in time, that are subject to repricing at various time horizons, known as interest rate sensitivity gaps.
The following table presents sensitivity gaps for these different intervals:
−Removed: At September 30, 2024
+Added: At March 31, 2025
(in thousands) 3 Mos.
39 unchanged sentences
(3) Based on contractual maturity.
−Removed: As of September 30, 2024, the Company is considered liability-sensitive as exhibited by the gap table.
−Removed: To reduce our net interest income sensitivity the Company has taken actions to extend the duration of its liabilities, both through increased levels of term certificates of deposit and the utilization of fixed-rate term borrowings.
+Added: As of March 31, 2025, the Company is considered liability sensitive as exhibited by the gap table above and our net interest income sensitivity analysis.
Changes in the mix of interest-earning assets or interest-bearing liabilities can either increase or decrease the net interest margin, without affecting interest rate sensitivity.
5 unchanged sentences
Because of these factors, an interest sensitivity gap analysis may not provide an accurate assessment of our actual exposure to changes in interest rates.
−Removed: The estimated impact on our net interest income over a time horizon of one year and the change in net portfolio value as of September 30, 2024 and December 31, 2023 are provided in the table below.
+Added: The estimated impact on our net interest income over a time horizon of one year and the change in net portfolio value as of March 31, 2025 and December 31, 2024 are provided in the table below.
For the scenarios shown, the interest rate simulation assumes an instantaneous and parallel shift in market interest rates and no change in the composition or size of the balance sheet.
−Removed: At September 30, 2024 At December 31, 2023
+Added: At March 31, 2025 At December 31, 2024
Change in Interest Rates
15 unchanged sentences
(3) This percentage change represents the impact to the net present value of equity, assuming there is no change in the structure of the balance sheet.
−Removed: The changes in interest rate sensitivity between December 31, 2023 and September 30, 2024 reflected the impact of lower market interest rates, a slightly steepened yield curve and changes to overall balance sheet composition.
+Added: The changes in interest rate sensitivity between December 31, 2024 and March 31, 2025 reflected the impact of lower market interest rates, a slightly steepened yield curve and changes to overall balance sheet composition.
Some of the assumptions made in the simulation model may not materialize and unanticipated events and circumstances will occur.
1 unchanged sentence
Current Banking Environment
−Removed: Industry events, including bank failures, have led to uncertainty and concerns regarding the liquidity positions of the banking sector.
−Removed: These failures underscore the importance of maintaining access to diverse sources of funding.
Market conditions and external factors may unpredictably impact the competitive landscape for deposits in the banking industry.
1 unchanged sentence
Reliance on secondary funding sources could increase the Company's overall cost of funding and reduce net interest income.
−Removed: As of September 30, 2024, the Company had available contingent liquidity of $5.1 billion which is equal to 80% of its total deposits and the level of uninsured deposits was 8% of total deposits.
+Added: As of March 31, 2025, the Company had available contingent liquidity of $5.5 billion which is equal to 91% of its total deposits and the level of uninsured deposits was 9% of total deposits.
The Company believes it has sufficient liquidity to meet its current needs.
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.