5 unchanged sentences
The Company retains residential fixed rate mortgages with terms of 15 years or less and biweekly payment residential mortgages with a term of 30 years or less.
−Removed: Commercial real estate loans generally have interest rates that reset in five years, and other commercial loans such as construction loans and commercial lines of credit reset with changes in the Prime Rate, the Federal Funds Rate, LIBOR or SOFR.
+Added: Commercial real estate loans generally have interest rates that reset in five years, and other commercial loans such as construction loans and commercial lines of credit reset with changes in the Prime Rate, the Federal Funds Rate or SOFR.
Investment securities purchases generally have maturities of five years or less, and mortgage-backed securities have weighted average lives between three and five years.
The Asset/Liability Committee meets at least monthly, or as needed, to review the impact of interest rate changes on net interest income, net interest margin, net income and the economic value of equity.
−Removed: The Asset/Liability Committee reviews a variety of strategies that project changes in asset or liability mix and the impact of those changes on projected net interest income and net income.
+Added: The Asset/Liability Committee reviews a variety of
+Added: strategies that project changes in asset or liability mix and the impact of those changes on projected net interest income and net income.
The Company’s strategy for liabilities has been to maintain a stable core-funding base by focusing on core deposit account acquisition and increasing products and services per household.
15 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 September 30, 2024 (dollars in thousands):
+Added: The following table sets forth the results of a twelve-month net interest income projection model as of March 31, 2025 (dollars in thousands):
Change in interest rates (basis points) - Rate Ramp Net Interest Income
2 unchanged sentences
-100 774,162 (621) (0.1)
−Removed: -100 736,120 (1,630) (0.2)
Static 774,783 — —
+100 771,151 (3,632) (0.5)
−Removed: The interest rate risk position of the Company remains slightly asset-sensitive.
−Removed: As a result, the preceding table indicates that, as of September 30, 2024, in the event of a 100 basis point increase in interest rates, whereby rates ramp up evenly over a twelve-month period, net interest income would decrease 0.3%, or $2.1 million.
−Removed: 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 increase 0.1%, or $592,000 over the same period.
+Added: +200 766,938 (7,845) (1.0)
+Added: The interest rate risk position of the Company is slightly liability-sensitive.
+Added: As a result, the preceding table indicates that, as of March 31, 2025, 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 decrease 1.0%, or $7.8 million.
+Added: In the event of a 200 basis point decrease in interest rates, whereby rates ramp downward evenly over a twelve-month period, net interest income would decrease 0.1%, or $1.0 million over the same period.
In this downward rate scenario, rates on deposits have a repricing floor of zero.
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 September 30, 2024 (dollars in thousands):
+Added: The following table illustrates the result of the economic value of equity model as of March 31,
+Added: 2025 (dollars in thousands):
Present Value of Equity Present Value of Equity as Percent of Present Value of Assets
4 unchanged sentences
-100 3,229,222 (100,941) (3.0) 12.8 (4.4)
+Added: Flat 3,330,163 — — 13.4 —
+100 3,367,674 37,511 1.1 13.8 2.9
−Removed: Static 2,949,566 — — 12.1 —
+200 3,392,091 61,928 1.9 14.1 5.4
−Removed: The preceding table indicates that as of September 30, 2024, in the event of an immediate and sustained 100 basis point increase in interest rates, the present value of equity is projected to increase 1.0%, or $30.2 million.
+Added: The preceding table indicates that as of March 31, 2025, in the event of an immediate and sustained 200 basis point increase in interest rates, the present value of equity is projected to increase 1.9%, or $61.9 million.
If rates were to decrease 200 basis points, the present value of equity would decrease 7.2%, or $240.0 million.
Certain shortcomings are inherent in the methodologies used in the above interest rate risk measurements.
−Removed: Modeling changes in net interest income requires the use of certain assumptions regarding prepayment and deposit decay rates, which may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates.
+Added: Modeling changes in net interest income requires the use of certain assumptions regarding prepayment and deposit decay rates, which may or may not reflect future loan prepayment and deposit withdrawal activity.
While management believes such assumptions are reasonable, there can be no assurance that assumed prepayment rates and decay rates will approximate actual future loan prepayment and deposit withdrawal activity.
2 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.