14 unchanged sentences
Conversely, a liability sensitive position refers to a balance sheet position in which an increase in short-term interest rates is expected to generate lower net interest income, as rates paid on interest-bearing liabilities would reprice upward more quickly than rates earned on interest-earning assets, thus compressing net interest margin.
+Added: Interest rate risk exposure is measured and monitored through various risk management tools, which include a simulation model that performs interest rate sensitivity analyses under multiple interest rate scenarios.
Interest rate risk measurement is calculated and reported to the Board ALCO at least quarterly.
3 unchanged sentences
Under NII at Risk, net interest income is modeled utilizing various assumptions for assets, liabilities, and derivatives.
+Added: The Company uses a static balance sheet to perform these analyses.
EVE measures the period end market value of assets minus the market value of liabilities and the change in this value as rates change.
−Removed: EVE is a period end measurement.
+Added: EVE simulation reflects the effect of interest rate shifts on the value of the Company.
+Added: In contrast to NII simulation, EVE simulation identifies risks arising from repricing or maturity gaps over the life of the balance sheet.
+Added: The EVE approach provides a comparatively broader scope than the NII at Risk approach since it captures all anticipated cash flows.
The following table presents the projected changes in NII at Risk and EVE that would occur upon an immediate change in interest rates based on independent analysis, but without giving effect to any steps that management might take to counteract that change as of the dates indicated:
4 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.