7 unchanged sentences
Our objective is to manage our interest rate risk by determining whether a given movement in interest rates affects our net interest income and the market value of our portfolio equity in a positive or negative way and to execute strategies to maintain interest rate risk within established limits.
−Removed: The results at June 30, 2023 indicate the level of risk within the parameters of our model.
−Removed: Our management believes that the June 30, 2023 results indicate a profile that reflects interest rate risk exposures in both rising and declining rate environments for both net interest income and economic value.
+Added: The results at September 30, 2023 indicate the level of risk within the parameters of our model.
+Added: Our management believes that the September 30, 2023 results indicate a profile that reflects interest rate risk exposures in both rising and declining rate environments for both net interest income and economic value.
Model Simulation Analysis.
6 unchanged sentences
Economic value simulation reflects the interest rate sensitivity of assets and liabilities in a more comprehensive fashion, reflecting all future time periods.
−Removed: It can identify the quantity of interest rate risk as a function of the changes in the economic values of assets and liabilities, and the corresponding change in the economic value of
−Removed: equity of NorthEast Community Bank.
+Added: It can identify the quantity of interest rate risk as a function of the changes in the economic values of assets and liabilities, and the corresponding change in the economic value of equity of NorthEast Community Bank.
Both types of simulation assist in identifying, measuring, monitoring and controlling interest rate risk and are employed by management to ensure that variations in interest rate risk exposure will be maintained within policy guidelines.
6 unchanged sentences
The table below sets forth an approximation of our interest rate risk exposure.
−Removed: The simulation uses projected repricing of assets and liabilities at June 30, 2023.
+Added: The simulation uses projected repricing of assets and liabilities at September 30, 2023.
The income simulation analysis presented represents a one-year impact of the interest scenario assuming a static balance sheet.
5 unchanged sentences
Management periodically reviews the rate assumptions based on existing and projected economic conditions and consults with industry experts to validate our model and simulation results.
−Removed: The table below sets forth, as of June 30, 2023, NorthEast Community Bank’s net portfolio value, the estimated changes in our net portfolio value and net interest income that would result from the designated instantaneous parallel changes in market interest rates.
+Added: The table below sets forth, as of September 30, 2023, NorthEast Community Bank’s net portfolio value, the estimated changes in our net portfolio value and net interest income that would result from the designated instantaneous parallel changes in market interest rates.
Net Interest Income
2 unchanged sentences
Estimated NPV
−Removed: As of June 30, 2023, based on the scenarios above, net interest income would increase by approximately 8.45% to 16.80%, over a one-year time horizon in a rising interest rate environment.
+Added: As of September 30, 2023, based on the scenarios above, net interest income would increase by approximately 7.40% to 14.72%, over a one-year time horizon in a rising interest rate environment.
One-year net interest income would decrease by approximately 8.81% to 17.86% in a declining interest rate environment over the same period.
2 unchanged sentences
The difference between the two results reflects the relatively long terms of a portion of our assets which is captured by the economic value at risk but has less impact on the one year net interest income sensitivity.
−Removed: Overall, our June 30, 2023 results indicate that we are adequately positioned with an acceptable net interest income and economic value at risk and that all interest rate risk results continue to be within our policy guidelines.
+Added: Overall, our September 30, 2023 results indicate that we are adequately positioned with an acceptable net interest income and economic value at risk and that all interest rate risk results continue to be within our policy guidelines.
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.