1 unchanged sentence
Market Risk Management
−Removed: The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are “interest rate sensitive” and by monitoring an institution’s interest rate sensitivity “gap.” An asset or liability is said to be interest rate sensitive within a specific time period if it will mature or re-price within that time period.
+Added: The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are “interest rate sensitive” and by monitoring an institution’s interest rate sensitivity “gap”.
+Added: An asset or liability is said to be interest rate sensitive within a specific time period if it will mature or re-price within that time period.
The interest rate sensitivity gap is defined as the difference between the amount of interest-earning assets maturing or re-pricing within a specific time period and the amount of interest-bearing liabilities maturing or re-pricing within that same time period.
47 unchanged sentences
Cumulative interest-earning assets as a percent of cumulative interest-bearing liabilities 108.13 % 150.42 % 156.64 % 146.51 % 138.96 % 138.96 %
+Added: At December 31, 2020, we had a cumulative interest sensitivity gap as a percentage of total assets of 25.14%.
We have an Asset/Liability Committee, consisting of members of management, which meets monthly to review market interest rates, economic conditions, the pricing of interest earning assets and interest bearing liabilities and our balance sheet structure.
40 unchanged sentences
(iii) commercial loans will prepay at an annual rate of 6% to 30%;
−Removed: (iv) consumer loans held by Northwest Bank will prepay at an annual rate of 18% to 24%;
−Removed: and (v) consumer loans that were formerly held by Northwest Consumer Discount Company will prepay at an annual rate of 55% to 70%.
+Added: and (iv) consumer loans held by Northwest Bank will prepay at an annual rate of 12% to 30%.
In regards to our deposits, it has been assumed that (i) fixed maturity deposits will not be withdrawn prior to maturity;
2 unchanged sentences
and (iv) checking accounts will re-price either when the rates on such accounts re-price as interest rate levels change, or when deposit holders withdraw funds from such accounts and select other types of deposit accounts, such as certificate accounts, which may have higher interest rates.
−Removed: For purposes of this analysis, management has estimated, based on historical trends, that $1,012.5 million, or 36.7%, of our interest-bearing demand accounts and $423.2 million, or 20.7%, of our savings deposits are interest sensitive and may re-price in one year or less, and that the remainder may re-price over longer time periods.
+Added: For purposes of this analysis, management has estimated, based on historical trends, that $1.040 billion, or 35.4%, of our interest-bearing demand accounts and $587.4 million, or 25.5%, of our savings deposits are interest sensitive and may re-price in one year or less, and that the remainder may re-price over longer time periods.
The above assumptions are annual percentages based on remaining balances and should not be regarded as indicative of the actual prepayments and withdrawals that we may experience.
2 unchanged sentences
Also, interest rates on certain types of assets and liabilities may fluctuate in advance of or lag behind changes in market interest rates.
−Removed: Additionally, certain assets, such as some adjustable-rate loans, have features that restrict changes in interest rates on a short-term basis and over the life of the asset.
+Added: Additionally, certain assets, such as some adjustable-rate loans, have
+Added: features that restrict changes in interest rates on a short-term basis and over the life of the asset.
Moreover, in the event of a change in interest rates, prepayment and early withdrawal levels would likely deviate significantly from those assumed in preparing the table.
3 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.