5 unchanged sentences
In recognition of this, we actively manage our assets and liabilities to minimize the impact of changing interest rates on our net interest margin and maximize our net interest income and the return on equity, while maintaining adequate liquidity and capital.
−Removed: Our board of directors has established a Board Risk Committee that, among other duties, sets broad asset and liability management policy (“ALM” policy) and directives for asset/liability management, as well as establishes review and control procedures to ensure adherence to this policy.
−Removed: The board of directors has delegated authority for the development and implementation of all asset and liability management policies, procedures, and strategies to the Asset Liability Committee (“ALCO”).
+Added: Our board of directors has established a Board Risk Committee that, among other duties, sets broad ALM policy and directives for asset/liability management, as well as establishes review and control procedures to ensure adherence to this policy.
+Added: The board of directors has delegated authority for the development and implementation of all asset and liability management policies, procedures, and strategies to the ALCO.
ALCO is comprised of various members of senior management responsible for interpreting the longer range objectives established by the board of directors.
As such, ALCO sets basic direction for the Corporation’s sources and uses of funds, establishes numerical ranges for primary and secondary objectives, monitors risk and the delivery of services, establishes subs to manage specific ALM activities, and monitors the counterparties engaged in ALM activities.
−Removed: Our ALM policy is reviewed by ALCO and the board of directors at least annually, which includes an evaluation of the ALM policy limits and guidelines in light of our risk profile, business strategies, regulatory guidelines and overall market conditions.
+Added: Our ALM policy is reviewed by ALCO and
+Added: the board of directors at least annually, which includes an evaluation of the ALM policy limits and guidelines in light of our risk profile, business strategies, regulatory guidelines and overall market conditions.
As part of our management of interest rate risk, we utilize the following modeling techniques that simulate the effects of variations in interest rates:
15 unchanged sentences
• Overall growth rates and product mix of interest-earning assets and interest-bearing liabilities.
−Removed: Because of the limitations inherent in any approach used to measure interest rate risk, simulated results are not intended to be used as a forecast of the actual effect of a change in market interest rates on our results, but rather as a means to better plan and execute appropriate Asset / Liability Management (“ALM”) strategies.
+Added: Because of the limitations inherent in any approach used to measure interest rate risk, simulated results are not intended to be used as a forecast of the actual effect of a change in market interest rates on our results, but rather as a means to better plan and execute appropriate ALM strategies.
Potential changes to our net interest income between a flat interest rate scenario and hypothetical rising and declining interest rate scenarios, measured over a one-year period as of December 31, 2023 and 2022 are presented in the following table.
7 unchanged sentences
-200 basis points over next 12 months (2.28) % (2.04) %
−Removed: The above interest rate simulation suggests that the Corporation’s balance sheet is narrowly liability sensitive as of December 31, 2022.
−Removed: In its current position, the table indicates that a 100-300 basis point increase in interest rates would have a modestly negative impact from rising rates on net interest income over the next 12 months and a more negative impact in a falling rate scenario.
−Removed: The simulated
−Removed: exposure to a change in interest rates is contained, manageable and well within policy guidelines.
−Removed: The results reflect a higher degree of wholesale funding at December 31, 2022 and continue to drive our funding strategy of increasing relationship-based accounts (core deposits).
+Added: -300 basis points over next 12 months (3.07) % NA
+Added: NA - Downward 300 basis point scenario not considered necessary for period ended December 31, 2022
+Added: The above interest rate simulation suggests that the Corporation’s balance sheet is narrowly asset sensitive as of December 31, 2023.
+Added: In its current position, the table indicates that a 100-300 basis point increase in interest rates would have a modestly positive impact from rising rates on net interest income over the next 12 months and a more negative impact in a falling rate scenario.
+Added: The simulated exposure to a change in interest rates is contained, manageable and well within policy guidelines.
Simulation of economic value of equity .
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2023 December 31,
−Removed: +300 basis points 2 % 60 %
−Removed: +200 basis points 3 % 45 %
−Removed: +100 basis points 3 % 26 %
−Removed: -100 basis points (8) % (37) %
−Removed: -200 basis points (23) % (97) %
−Removed: This economic value of equity profile at December 31, 2022 suggests that we would experience a positive effect from an increase in rates, and that the impact would become greater as rates continue to rise due to the duration of our interest-earning assets.
−Removed: Conversely, we would experience a negative effect from a decrease in rates.
+Added: +300 basis points over next 12 months (7) % 2 %
+Added: +200 basis points over next 12 months (3) % 3 %
+Added: +100 basis points over next 12 months — % 3 %
+Added: -100 basis points over next 12 months (3) % (8) %
+Added: -200 basis points over next 12 months (13) % (23) %
+Added: -300 basis points over next 12 months (31) % NA
+Added: NA - Downward 300 basis point scenario not considered necessary for period ended December 31, 2022
+Added: This economic value of equity profile at December 31, 2023 suggests that we would experience a negative effect from an increase or decrease in rates, and that the impact would become greater as rates continue to rise due to the duration of our interest-earning assets.
While an instantaneous shift in interest rates is used in this analysis to provide an estimate of exposure, we believe that a gradual shift in interest rates would have a much more modest impact.
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.