12 unchanged sentences
When open market conditions are favorable, we also attempt to reduce interest rate risk by lengthening the maturities of our interest-bearing liabilities by using FHLB advances as a source of long-term fixed-rate funds, if necessary, and by promoting longer-term certificates of deposit.
−Removed: At December 31, 2021, total interest-earning assets maturing or re-pricing within one year exceeded total interest-bearing liabilities maturing or re-pricing in the same period by $433.5 million, representing a positive one-year gap ratio of 2.99%.
+Added: At December 31, 2022, total interest-earning liabilities maturing or re-pricing within one year exceeded total interest-bearing assets maturing or re-pricing in the same period by $522.2 million, representing a negative one-year gap ratio of 3.70%.
The following table sets forth, on a carrying value basis, the amounts of interest-earning assets and interest-bearing liabilities outstanding at December 31, 2022, which are expected to re-price or mature, based upon certain assumptions, in each of the future time periods shown.
25 unchanged sentences
Time deposits 759,863 233,592 55,402 3,418 10 1,052,285
−Removed: Money market deposit accounts 2,539,412 — — — 90,470 2,629,882
+Added: Money market demand accounts 2,329,914 — — — 127,655 2,457,569
Savings deposits 408,486 454,334 454,334 957,866 — 2,275,020
Interest-bearing demand deposits 699,212 407,786 407,786 1,019,465 152,182 2,686,431
−Removed: FHLB borrowings (378) (757) 124,710 — — 123,575
+Added: FHLB Advances 551,300 — — — — 551,300
+Added: Collateral 24,100 — — — — 24,100
Other borrowings 105,766 — — — — 105,766
Trust Preferred Securities 129,314 — — — — 129,314
+Added: Subordinated debt (322) (638) 114,800 — — 113,840
Total rate-sensitive liabilities $ 5,007,633 1,095,074 1,032,322 1,980,749 279,847 9,395,625
−Removed: Interest sensitivity gap per period $ 433,477 2,792,795 899,733 81,216 (469,185) 3,738,036
Cumulative interest sensitivity gap $ (522,248) 1,818,754 2,571,742 2,898,835 3,585,795 3,585,795
8 unchanged sentences
Certain assumptions are made regarding loan prepayments and decay rates of savings and interest-bearing demand deposit accounts.
−Removed: Because it is difficult to accurately project the market reaction of depositors and borrowers, the effect of actual changes in interest rates on these assumptions may differ from simulated results.
+Added: Because it is difficult to
+Added: accurately project the market reaction of depositors and borrowers, the effect of actual changes in interest rates on these assumptions may differ from simulated results.
We have established the following guidelines for assessing interest rate risk:
6 unchanged sentences
Given a parallel shift of 100 bps, 200 bps, and 300 bps in interest rates, the market value of equity may not decrease by more than 15%, 30%, and 35%, respectively, from the computed economic value at current interest rate levels.
−Removed: The following table illustrates the simulated impact of a parallel 100 bps, 200 bps or 300 bps upward or 100 bps downward movement in interest rates on net interest income, net income, return on average equity, earnings per share, and market value of equity.
+Added: The following table illustrates the simulated impact of a parallel 100 bps, 200 bps or 300 bps upward or 100 bps, 200 bps, or 300 bps downward movement in interest rates on net interest income, net income, return on average equity, earnings per share, and market value of equity.
These analyses were prepared assuming that total interest-earning asset and interest-bearing liability levels at December 31, 2022 remain constant.
1 unchanged sentence
Increase Decrease
−Removed: Parallel shift in interest rates over the next 12 months 100 bps 200 bps 300 bps 100 bps
+Added: Parallel shift in interest rates over the next 12 months 100 bps 200 bps 300 bps 100 bps 200 bps 300 bps
Projected percentage increase/(decrease) in net interest income (1.3) % (2.7) % (4.3) % (5.0) % (10.8) % (16.9) %
26 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 $1.040 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.
+Added: For purposes of this analysis, management has estimated, based on historical trends, that $699.2 million, or 26.0%, of our interest-bearing demand accounts and $408.5 million, or 18.0%, 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
−Removed: 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 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.