1 unchanged sentence
Market Risk Management
−Removed: The effective management of market risk is essential to achieving the Company’s strategic financial objectives.
−Removed: As a financial institution, the Company’s most significant market risk exposure is interest rate risk in its balance sheet;
−Removed: however, market risk also includes product liquidity risk, price risk and volatility risk in the Company’s lines of business.
+Added: The effective management of market risk is essential to achieving the Company’s strategic financial objectives.
+Added: As a financial institution, the Company’s most significant market risk exposure is interest rate risk in its balance sheet;
+Added: however, market risk also includes product liquidity risk, price risk and volatility risk in the Company’s lines of business.
The primary objectives of market risk management are to minimize any adverse effect that changes in market risk factors may have on net interest income, and to offset the risk of price changes for certain assets recorded at fair value.
Interest Rate Market Risk
−Removed: The Company’s net interest income and the fair value of its financial instruments are influenced by changes in the level of interest rates.
+Added: The Company’s net interest income and the fair value of its financial instruments are influenced by changes in the level of interest rates.
The Company manages its exposure to fluctuations in interest rates through policies established by its Asset/Liability Committee.
12 unchanged sentences
(Dollars in thousands)
−Removed: Economic Value of Equity (“EVE”).
+Added: Economic Value of Equity ( “
We analyze the sensitivity of our financial condition to changes in interest rates through our economic value of equity model.
17 unchanged sentences
Inflation also affects other expenses that tend to rise during periods of general inflation.
−Removed: Management believes the most significant potential impact of inflation on financial results is a direct result of the Company’s ability to manage the impact of changes in interest rates.
+Added: Management believes the most significant potential impact of inflation on financial results is a direct result of the Company’s ability to manage the impact of changes in interest rates.
Management attempts to maintain a balanced position between rate-sensitive assets and liabilities in order to minimize the impact of interest rate fluctuations on net interest income.
−Removed: However, this goal can be difficult to completely achieve in times of rapidly changing interest rates and is one of many factors considered in determining the Company’s interest rate positioning.
+Added: However, this goal can be difficult to completely achieve in times of rapidly changing interest rates and is one of many factors considered in determining the Company’s interest rate positioning.
The Company is asset sensitive as of December 31, 2022.
−Removed: Refer to the Net Interest Income Sensitivity table for additional details on the Company’s interest rate sensitivity.
+Added: Refer to the Net Interest Income Sensitivity table for additional details on the Company’s interest rate sensitivity.
The Bank also uses derivative financial instruments to manage risk to the Bank associated with changing interest rates, and to assist customers with their risk management objectives.
1 unchanged sentence
The net result of these interest rate swaps is that the customer pays a fixed rate of interest and the Bank receives a floating rate thus allowing the Bank another tool to further manage the interest rate risk for certain products.
−Removed: These back-to-back loan swaps qualify as financial derivatives with fair values reported in “Other assets” and “Other liabilities” in the Consolidated Balance Sheet.
+Added: These back-to-back loan swaps qualify as financial derivatives with fair values reported in “Other assets”
+Added: and “Other liabilities”
+Added: in the Consolidated Balance Sheet.  
We believe that our current interest rate exposure is manageable and does not indicate any significant exposure to interest rate changes.
−Removed: Financial Statements and Supplementary Data
−Removed: Report of Independent Registered Public Accounting Firm
−Removed: To the Stockholders and the Board of Directors
−Removed: MainStreet Bancshares, Inc.
−Removed: Fairfax, Virginia
−Removed: Opinion on the Financial Statements
−Removed: We have audited the accompanying consolidated statements of financial condition of MainStreet Bancshares, Inc.
−Removed: and Subsidiaries (the Company) as of December 31, 2021 and 2020, the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements).
−Removed: In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
−Removed: Basis for Opinion
−Removed: These financial statements are the responsibility of the Company’s management.
−Removed: Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
−Removed: We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with U.S.
−Removed: federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
−Removed: We conducted our audits in accordance with the standards of the PCAOB.
−Removed: Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
−Removed: The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.
−Removed: As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
−Removed: Accordingly, we express no such opinion.
−Removed: Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
−Removed: Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
−Removed: Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
−Removed: We believe that our audits provide a reasonable basis for our opinion.
−Removed: /s/ Yount, Hyde & Barbour, P.C.
−Removed: We have served as the Company's auditor since 2008.
−Removed: Winchester, Virginia
−Removed: March 23, 2022
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.