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 September 30, 2024 indicate the level of risk within the parameters of our model.
−Removed: Our management believes that the September 30, 2024 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 March 31, 2025 indicate the level of risk within the parameters of our model.
+Added: Our management believes that the March 31, 2025 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.
4 unchanged sentences
These two perspectives give rise to income simulation and economic value simulation, each of which presents a unique picture of our risk of any movement in interest rates.
−Removed: Income simulation identifies the timing and magnitude of changes in income resulting from changes in prevailing interest rates over a short-term time horizon (usually one or two years).
+Added: Income simulation identifies the timing and magnitude of
+Added: changes in income resulting from changes in prevailing interest rates over a short-term time horizon (usually one or two years).
Economic value simulation reflects the interest rate sensitivity of assets and liabilities in a more comprehensive fashion, reflecting all future time periods.
8 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 September 30, 2024.
+Added: The simulation uses projected repricing of assets and liabilities at March 31, 2025.
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 September 30, 2024, 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 March 31, 2025, 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 September 30, 2024, based on the scenarios above, net interest income would increase by approximately 9.12% to 18.02%, over a one-year time horizon in a rising interest rate environment.
+Added: As of March 31, 2025, based on the scenarios above, net interest income would increase by approximately 7.61% to 14.95%, over a one-year time horizon in a rising interest rate environment.
One-year net interest income would decrease by approximately 8.42% to 16.95% in a declining interest rate environment over the same period.
1 unchanged sentence
We have established an interest rate floor of zero percent for measuring interest rate risk.
−Removed: 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 September 30, 2024 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: 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.
+Added: Overall, our March 31, 2025 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.