1 unchanged sentence
The Company’s interest rate sensitivity is monitored through the use of interest rate risk (“IRR”) modeling.
−Removed: The following table sets forth the amounts of interest-earning assets and interest-bearing liabilities outstanding at June 30, 2022, which were estimated by the Company, based upon certain assumptions, to reprice or mature in each of the future time periods shown.
−Removed: At June 30, 2022, the Company’s one-year gap was positive 7.62% as compared to positive 14.15% at December 31, 2021.
−Removed: The table is intended to provide an approximation of the projected repricing of assets and liabilities at June 30, 2022 on the basis of contractual maturities, anticipated prepayments, scheduled rate adjustments, and the rate sensitivity of non-maturity deposits within a three month period and subsequent selected time intervals.
−Removed: At June 30, 2022 3 Months
+Added: The following table sets forth the amounts of interest-earning assets and interest-bearing liabilities outstanding at September 30, 2022, which were estimated by the Company, based upon certain assumptions, to reprice or mature in each of the future time periods shown.
+Added: At September 30, 2022, the Company’s one-year gap was positive 7.90% as compared to positive 14.15% at December 31, 2021.
+Added: The table is intended to provide an approximation of the projected repricing of assets and liabilities at September 30, 2022 on the basis of contractual maturities, anticipated prepayments, scheduled rate adjustments, and the rate sensitivity of non-maturity deposits within a three month period and subsequent selected time intervals.
+Added: At September 30, 2022 3 Months
or Less More than
24 unchanged sentences
Cumulative interest sensitivity gap as a percent of total interest-earning assets 6.97 % 7.90 % 14.83 % 23.60 % 26.37 % 26.37 %
−Removed: (1) For purposes of the gap analysis, loans receivable includes non-performing loans gross of the allowance for loan credit losses, unamortized discounts and deferred loan costs and fees.
+Added: (1) For purposes of the gap analysis, loans receivable includes loans held for sale and non-performing loans gross of the allowance for loan credit losses, unamortized discounts and deferred loan costs and fees.
(2) Interest sensitivity gap represents the difference between interest-earning assets and interest-bearing liabilities.
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Finally, the ability of many borrowers to service their adjustable-rate loans may be impaired in the event of an interest rate increase.
−Removed: Additionally, the table below sets forth the Company’s exposure to IRR as measured by the change in economic value of equity (“EVE”) and net interest income under varying rate shocks as of June 30, 2022 and December 31, 2021.
+Added: Additionally, the table below sets forth the Company’s exposure to IRR as measured by the change in economic value of equity (“EVE”) and net interest income under varying rate shocks as of September 30, 2022 and December 31, 2021.
All methods used to measure interest rate sensitivity involve the use of assumptions, which may tend to oversimplify the manner in which actual yields and costs respond to changes in market interest rates.
The Company’s interest rate sensitivity should be reviewed in conjunction with the financial statements and notes thereto contained in the 2021 Form 10-K.
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
Change in Interest Rates in Basis Points (Rate Shock) Economic Value of Equity Net Interest Income Economic Value of Equity Net Interest Income
6 unchanged sentences
(100) 1,682,967 (4.8) 13.9 405,872 (4.8) 1,230,947 (15.7) 10.3 299,994 (4.6)
−Removed: The change in interest rate sensitivity was impacted by the deployment of cash into loans, an increase in overnight borrowings, change in deposit mix resulting in an increase in shorter-term time deposits, and a significant increase in market interest rates.
+Added: The change in interest rate sensitivity was impacted by the deployment of cash into loans, a shift out of overnight borrowings into short-term borrowings, a slowdown in loan and securities prepayment speeds, and a significant increase in market interest rates.
As is the case with the gap calculation, certain shortcomings are inherent in the methodology used in the EVE and net interest income IRR measurements.
2 unchanged sentences
Second, the model assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or repricing of specific assets and liabilities.
−Removed: Third, the model does not take into account the Company’s business or strategic plans.
+Added: Third, the model does not take into account the Company’s business or strategic plans or any steps it may take to respond to changes in rates.
Accordingly, although the above measurements provide an indication of the Company’s IRR exposure at a particular point in time, such measurements are not intended to provide a precise forecast of the effect of changes in market interest rates on the Company’s EVE and net interest income, and can be expected to differ from actual results.
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.