7 unchanged sentences
The process includes simulating various interest rate environments and their impact on net interest income.
−Removed: As of June 30, 2022, the level of net interest income at risk in a rising or declining 200 basis point change in interest rates was within the Company’s policy limits.
+Added: As of September 30, 2022, the level of net interest income at risk in a rising or declining 200 basis point change in interest rates was within the Company’s policy limits.
The Company’s policy allows for a decrease of no more than 10% of net interest income for a ± 200 basis point shift in interest rates.
1 unchanged sentence
These are static gap measurements that do not take into account any future activity, and as such are principally used as early indications of potential interest rate exposures over specific intervals.
−Removed: As of June 30, 2022, the Company had a positive 90-day interest sensitivity gap of $33.0 million or 1.6% of total assets, compared to the $175.1 million interest sensitivity gap, or 8.5% of total assets, as of December 31, 2021.
−Removed: At June 30, 2022, rate-sensitive assets repricing within 90 days decreased $100.5 million due to a $105.7 million decrease in interest-bearing deposits.
+Added: As of September 30, 2022, the Company had a negative 90-day interest sensitivity gap of $2.3 million or 0.1% of total assets, compared to the $175.1 million interest sensitivity gap, or 8.5% of total assets, as of December 31, 2021.
+Added: At September 30, 2022, rate-sensitive assets repricing within 90 days decreased $168.4 million since December 31, 2021 due to a $167.6 million decrease in interest-bearing deposits.
Rate-sensitive liabilities repricing within 90 days increased $9.0 million since year end due primarily to a $9.7 million increase in deposits repricing.
−Removed: A positive gap means that rate-sensitive assets are greater than rate-sensitive liabilities at the time interval.
−Removed: This would indicate that in a rising rate environment, yield on interest-earning assets in the 90-day time frame could increase faster than the cost of interest-bearing liabilities.
+Added: A negative gap means that rate-sensitive liabilities are greater than rate-sensitive assets at the time interval.
+Added: This would indicate that in a rising rate environment, the cost of interest-bearing liabilities in the 90-day time frame could increase faster than the yield on interest-earning assets.
The repricing intervals are managed by ALCO strategies, including adjusting the average life of the investment portfolio, pricing of deposit liabilities to attract longer term time deposits, loan pricing to encourage variable rate products and evaluation of loan sales of long-term fixed rate mortgages.
4 unchanged sentences
The Company believes the study provides pertinent data to support the assumptions used in modeling non-maturity deposits.
−Removed: June 30, 2022
+Added: September 30, 2022
Rate Sensitivity Table
12 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.