7 unchanged sentences
Generally, re-pricing risk is the risk of adverse consequences from a change in interest rates that arises because of differences in the timing of when those interest rate changes affect an institution’s assets and liabilities.
+Added: • Basis Risk :
Basis risk is the risk of adverse consequences resulting from unequal changes in the spread between two or more rates for different instruments with the same maturity.
1 unchanged sentence
Also called yield curve twist risk, yield curve risk is the risk of adverse consequences resulting from unequal changes in the spread between two or more rates for different maturities for the same instrument.
+Added: • Option Risk :
In banking, option risks are known as borrower options to prepay loans and depositor options to make deposits, withdrawals, and early redemptions.
1 unchanged sentence
The Company is exposed to price and interest rate risks in the financial instruments and positions we hold.
−Removed: This includes investment securities, loans, loans held for sale, mortgage servicing rights, deposits, borrowings, and derivative financial instruments.
+Added: This includes investment securities, loans, loans held for sale, mortgage servicing rights, deposits, borrowings, and derivative
+Added: financial instruments.
Market risks such as foreign currency exchange risk and commodity price risk do not arise in the normal course of the Company's business.
6 unchanged sentences
Actual results will differ from simulated results due to timing, magnitude and frequency of interest rate changes, changes in market conditions and management strategies, among other factors.
−Removed: Although analysis of interest rate gap (the difference between the repricing of interest-earning assets and interest-bearing liabilities during a given period of time) is one standard tool for the measurement of exposure to interest rate risk, we believe that because interest rate gap analysis does not address all factors that can affect earnings performance it should not be used as the primary indicator of exposure to interest rate risk and the related volatility of net interest income in a changing interest rate
+Added: Although analysis of interest rate gap (the difference between the repricing of interest-earning assets and interest-bearing liabilities during a given period of time) is one standard tool for the measurement of exposure to interest rate risk, we believe that because interest rate gap analysis does not address all factors that can affect earnings performance it should not be used as the primary indicator of exposure to interest rate risk and the related volatility of net interest income in a changing interest rate environment.
Interest rate gap analysis is primarily a measure of liquidity based upon the amount of change in principal amounts of assets and liabilities outstanding, as opposed to a measure of changes in the overall net interest margin.
3 unchanged sentences
Commercial loan interest rate swap agreements are offset with corresponding swap agreements with a third party swap dealer in order to offset the Company's exposure on the fixed component of the customer’s interest rate swap.
−Removed: Additional information regarding the Company’s customer interest rate swap program is presented in Note 21 of the Notes to Consolidated Financial Statements included in Item 8 of this report.
+Added: Additional information regarding the Company’s customer interest rate swap program is presented in Note 21 of the Notes to Consolidated Financial Statements included in Part II.
+Added: Item 8 of this report.
The following table sets forth the estimated maturity or repricing, and the resulting interest rate gap, of our interest-earning assets (which exclude nonaccrual loans) and interest-bearing liabilities at December 31, 2020.
1 unchanged sentence
Estimated maturity or repricing at December 31, 2020
−Removed: (In Thousands)
−Removed: Within 1 year
+Added: (In Thousands) Within 1 year 1-5 years >5 years Total
Interest -Earning Assets:
11 unchanged sentences
Securities sold under repurchase agreements — — — —
+Added: Borrowings 764 3,334 10,719 14,817
Junior subordinated debentures — — 10,310 10,310
11 unchanged sentences
Moreover, the ability of many borrowers to service their adjustable-rate debt may decrease in the event of an increase in market interest rates.
−Removed: While the analysis above sets forth the estimated maturity or repricing and the resulting interest rate gap of our interest-earning assets and interest-bearing liabilities, the following tables show the estimated impact on net interest income and net income at one and two year time horizons with instantaneous parallel rate shocks of up 400 basis points, up 300 basis points, up 200 basis points, up 100 basis points, up 50 basis points, down 50 basis points, and down 100 basis points.
+Added: While the analysis above sets forth the estimated maturity or repricing and the resulting interest rate gap of our interest-earning assets and interest-bearing liabilities, the following tables show the estimated impact on net interest income and net income at one and two year time horizons with instantaneous parallel rate shocks of up 400 basis points, up 300 basis points, up 200 basis points, up 100 basis points, and up 50 basis points.
+Added: The Company did not perform analyses for rate shock scenarios where interest rates instantaneously drop as of December 31, 2020 because those scenarios do not produce meaningful results in the current low interest rate environment.
Due to the various assumptions used for this modeling and potential balance sheet strategies management may implement to mitigate interest rate risk, no assurance can be given that projections will reflect actual results.
−Removed: The following table shows the estimated impact on net interest income under for the stated interest rate scenarios:
−Removed: 1st Year Change in net interest income from base scenario
−Removed: Percentage change
−Removed: 2nd Year Change in net interest income from base scenario
−Removed: Percentage change
+Added: The following table shows the estimated impact on net interest income under the stated interest rate scenarios:
+Added: 1st Year Change in net interest income from base scenario Percentage change 2nd Year Change in net interest income from base scenario Percentage change
(In Thousands)
4 unchanged sentences
Up 50 basis points $2,332 3.96 % $3,808 6.80 %
−Removed: Down 50 basis points
−Removed: Down 100 basis points
+Added: Down 50 basis points NM NM NM NM
+Added: Down 100 basis points NM NM NM NM
The following table shows the estimated impact on net income under the stated interest rate scenarios.
−Removed: 1st Year Change in net income from base scenario
−Removed: Percentage change
−Removed: 2nd Year Change in net income from base scenario
−Removed: Percentage change
+Added: The trends in the estimated impact on net income under the stated interest rate scenarios differ from the table above primarily due to the inclusion of the estimated impact of changes in other operating income and expense related to mortgage banking activities:
+Added: 1st Year Change in net income from base scenario Percentage change 2nd Year Change in net income from base scenario Percentage change
(In Thousands)
4 unchanged sentences
Up 50 basis points $951 5.77 % $3,014 29.91 %
−Removed: Down 50 basis points
−Removed: Down 100 basis points
+Added: Down 50 basis points NM NM NM NM
+Added: Down 100 basis points NM NM NM NM
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.