Quantitative and Qualitative Disclosures About Market Risk
−Removed: Management of Interest Rate Risk (“IRR”)
+Added: Management of Interest Rate Risk
Market risk is the risk of loss from adverse changes in market prices and rates.
3 unchanged sentences
Changes in interest rates may also negatively or positively impact the market value of the Company’s investment securities, in particular fixed-rate instruments.
−Removed: Net gains or losses in available-for-sale securities can increase or decrease accumulated other comprehensive income or loss and total stockholders’ equity.
+Added: Net gains or losses in AFS securities can increase or decrease accumulated other comprehensive income or loss and total stockholders’ equity.
Management actively monitors and manages IRR.
4 unchanged sentences
and manage the risk consistent with Board approved guidelines.
−Removed: The Company maintains an Asset Liability Committee (“ALCO”) consisting of members of management, responsible for reviewing asset liability policies and the IRR position.
+Added: The Company maintains an ALCO consisting of members of management, responsible for reviewing asset liability policies and the IRR position.
ALCO meets regularly and reports the Company’s IRR position and trends to the Board on a regular basis.
6 unchanged sentences
and (6) purchasing interest rate swaps to manage overall balance sheet interest rate risk.
−Removed: The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are “interest rate sensitive.” Interest rate sensitivity is monitored through the use of an IRR model, which measures the change in the institution’s economic value of equity (“EVE”) and net interest income under various interest rate scenarios.
+Added: The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are “interest rate sensitive.” Interest rate sensitivity is monitored through the use of an IRR model, which measures the change in the institution’s EVE and net interest income under various interest rate scenarios.
EVE is the difference between the net present value of assets, liabilities and off-balance-sheet contracts.
12 unchanged sentences
The Company performs a variety of EVE and twelve-month net interest income sensitivity scenarios.
−Removed: The following table sets forth sensitivity for a specific range of interest rate scenarios as of September 30, 2025 and December 31, 2024.
−Removed: September 30, 2025 December 31, 2024
+Added: At both March 31, 2026 and December 31, 2025, the Company was in compliance with Board guidelines for each scenario.
+Added: The following table sets forth sensitivity for a specific range of interest rate scenarios as of March 31, 2026 and December 31, 2025.
+Added: March 31, 2026 December 31, 2025
Change in Interest Rates in Basis Points Economic Value of Equity Net Interest Income Economic Value of Equity Net Interest Income
7 unchanged sentences
(300) (5.2) 3.9 (4.3) 3.0
−Removed: The net interest income sensitivity results indicate that at September 30, 2025 the Company was modestly liability sensitive to rising rate scenarios and modestly asset sensitive to falling rate scenarios.
−Removed: The change in sensitivity between September 30, 2025 and December 31, 2024 was impacted by an increase and mix shift into fixed-rate investments, and an increase in overnight borrowings and short-term time deposits, partially offset by an increase and mix shift into floating-rate loans, execution of pay fixed derivative transactions and a deposit mix shift into non-maturity deposits with lower betas.
−Removed: Overall, the measure of EVE at risk decreased in both rising and falling rate scenarios from December 31, 2024 to September 30, 2025.
−Removed: This was the result of an increase in fixed-rate investments, and an increase in overnight borrowings and short-term time deposits, partially offset by an increase in floating-rate loans, execution of pay fixed derivative transactions and a deposit mix shift within non-maturity deposits into lower betas.
+Added: The net interest income sensitivity results indicate that at March 31, 2026, the Company was modestly liability sensitive, and the measure of EVE at risk decreased in both rising and falling rate scenarios from December 31, 2025 to March 31, 2026.
+Added: The change in sensitivity between March 31, 2026 and December 31, 2025 was impacted by growth in floating rate loans partially offset by a mix shift into non-maturity deposits with higher betas, a mix shift in the investment portfolio and a decline in interest earning cash.
Certain shortcomings are inherent in the methodology used in the EVE and net interest income IRR measurements.
7 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.