2 unchanged sentences
The primary reason for these efforts is to guard Park from adverse impacts of unforeseen changes in interest rates.
−Removed: With the rise in interest rates experienced throughout 2022 and continuing into 2023, Park is now more exposed to an adverse impact to earnings in a down rate environment.
+Added: With the shift in deposit mix and other balance sheet composition changes, Park has experienced a moderation in earnings risk exposure to either rising or falling interest rate environments, and management views its risk profile as being relatively interest rate risk neutral.
Management actively monitors changes in the sensitivity position and has ample tools to adjust exposure as needed.
1 unchanged sentence
On page 78 (Table 38) of Park’s 2022 Form 10-K, management reported that Park’s twelve-month cumulative rate sensitivity gap was a positive (assets exceeding liabilities) $1,087 million or 11.9% of total interest earning assets at December 31, 2022.
−Removed: At June 30, 2023, Park’s twelve-month cumulative rate sensitivity gap was a positive (assets exceeding liabilities) $529.6 million or 5.79% of total interest earning assets.
+Added: At September 30, 2023, Park’s twelve-month cumulative rate sensitivity gap was a positive (assets exceeding liabilities) $394.3 million or 4.25% of total interest earning assets.
Management supplements the interest rate sensitivity gap analysis with periodic simulations of balance sheet sensitivity under various interest rate and what-if scenarios to better forecast and manage the net interest margin.
1 unchanged sentence
On page 79 of Park’s 2022 Form 10-K, management reported that at December 31, 2022, the earnings simulation model projected that net income would increase by 3.7% using a rising interest rate scenario and decrease by 5.4% using a declining interest rate scenario over the next year.
−Removed: At June 30, 2023, the earnings simulation model projected that net income would increase by 0.3% using a rising interest rate scenario and would decrease by 0.8% in a declining interest rate scenario.
−Removed: At June 30, 2023, management continues to believe that it has the tools necessary to mitigate gradual changes in interest rates (50 basis points per quarter for a total of 200 basis points per year) such that the overall impact to net income will be modest.
+Added: At September 30, 2023, the earnings simulation model projected that net income would decrease by 3.0% using a rising interest rate scenario and would increase by 2.6% in a declining interest rate scenario.
+Added: At September 30, 2023, management continues to believe that it has the tools necessary to mitigate gradual changes in interest rates (50 basis points per quarter for a total of 200 basis points per year) such that the overall impact to net income will be modest.
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.