2 unchanged sentences
Interest rate risk is the exposure of a bank’s current and future earnings and capital arising from adverse movements in interest rates.
−Removed: The guidelines of the Company’s interest rate risk policy seek to limit the exposure to changes in
−Removed: interest rates that affect the underlying economic value of assets and liabilities, earnings and capital.
+Added: The guidelines of the Company’s interest rate risk policy seek to limit the exposure to changes in interest rates that affect the underlying economic value of assets and liabilities, earnings and capital.
To minimize interest rate risk, the Company generally sells all 20- and 30-year fixed-rate residential mortgage loans at origination.
21 unchanged sentences
• Higher-balance demand deposit tiers and promotional demand accounts move at 50% to 75% of the rate ramp in either direction, subject to certain interest rate floors.
−Removed: The following table sets forth the results of a twelve-month net interest income projection model as of June 30, 2023 (dollars in thousands):
+Added: The following table sets forth the results of a twelve-month net interest income projection model as of September 30, 2023 (dollars in thousands):
Change in interest rates (basis points) - Rate Ramp Net Interest Income
2 unchanged sentences
-200 391,237 (3,530) (0.9) %
+Added: -100 393,149 (1,618) (0.4)
Static 394,767 — —
1 unchanged sentence
+200 397,067 2,300 0.6
−Removed: The interest rate risk position of the Company remains fairly neutral.
−Removed: As a result, the preceding table indicates that, as of June 30, 2023, in the event of a 200 basis point increase in interest rates, whereby rates ramp up evenly over a twelve-month period, net interest income would increase 0.5%, or $2.0 million.
+Added: The interest rate risk position of the Company remains slightly asset-sensitive.
+Added: As a result, the preceding table indicates that, as of September 30, 2023, in the event of a 200 basis point increase in interest rates, whereby rates ramp up evenly over a twelve-month period, net interest income would increase 0.6%, or $2.3 million.
In the event of a 300 basis point decrease in interest rates, whereby rates ramp downward evenly over a twelve-month period, net interest income would decrease 1.4%, or $5.6 million over the same period.
1 unchanged sentence
Another measure of interest rate sensitivity is to model changes in economic value of equity through the use of immediate and sustained interest rate shocks.
−Removed: The following table illustrates the result of the economic value of equity model as of June 30, 2023 (dollars in thousands):
+Added: The following table illustrates the result of the economic value of equity model as of September 30, 2023 (dollars in thousands):
Present Value of Equity Present Value of Equity as Percent of Present Value of Assets
4 unchanged sentences
-200 1,740,891 (63,507) (3.5) 12.3 (7.9)
+Added: -100 1,781,147 (23,251) (1.3) 12.8 (3.6)
Flat 1,804,398 — — 13.3 —
1 unchanged sentence
+200 1,828,234 23,836 1.3 14.1 6.0
−Removed: The preceding table indicates that as of June 30, 2023, in the event of an immediate and sustained 200 basis point increase in interest rates, the present value of equity is projected to increase 0.8%, or $14.6 million.
+Added: The preceding table indicates that as of September 30, 2023, in the event of an immediate and sustained 200 basis point increase in interest rates, the present value of equity is projected to increase 1.3%, or $23.8 million.
If rates were to decrease 300 basis points, the present value of equity would decrease 6.9%, or $125.4 million.
5 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.