19 unchanged sentences
immediate change in interest rates of -100, +100, +200 and +300 basis points (“bp”) with no effect given to steps that management might take to counter the effect of the interest rate movement.
−Removed: As of December 31, 2019, the targeted Federal
−Removed: Funds Rate range was 1.50% to 1.75%, making an immediate change of -300 basis points improbable.
−Removed: The following table is derived from the internal interest rate risk model and represents the NPV based on the indicated changes in interest rates as of December 31, 2019
−Removed: (dollars in thousands).
+Added: As of March 31, 2020, the targeted Federal Funds Rate
+Added: range was 0.00% to 0.25%, making an immediate change of -200 basis points or more improbable.
+Added: The following table is derived from the internal interest rate risk model and represents the NPV based on the indicated changes in interest rates as of March 31, 2020 (dollars
+Added: in thousands).
Basis Points ("bp")
2 unchanged sentences
of Portfolio Value
−Removed: Represents the increase (decrease) of the NPV at the indicated interest rate change in comparison to the NPV at December 31, 2019 (“base case”).
+Added: Represents the increase (decrease) of the NPV at the indicated interest rate change in comparison to the NPV at March 31, 2020 (“base case”).
Derived from the NPV divided by the portfolio value of total assets.
Derived from the change in the NPV ratio from the base case amount assuming the indicated change in interest rates (expressed in basis points).
−Removed: The following table is derived from the internal interest rate risk model and represents the change in the NPV at a -100 basis point rate shock at December 31, 2019 and June 30,
−Removed: At December 31, 2019
+Added: The following table is derived from the internal interest rate risk model and represents the change in the NPV at a -100 basis point rate shock at March 31, 2020 and June 30,
+Added: At March 31, 2020
At June 30, 2019
7 unchanged sentences
Change in NPV Ratio
−Removed: The pre-shock NPV ratio decreased 77 basis points to 11.03 percent at December 31, 2019 from 11.80 percent at June 30, 2019 and the post-shock NPV ratio decreased 57 basis points to 10.10 percent
−Removed: at December 31, 2019 from 10.67 percent at June 30, 2019.
−Removed: The decrease of the NPV ratios was primarily attributable to a $7.5 million cash dividend distribution from the Bank to Provident Financial Holdings, Inc.
−Removed: in September 2019, partly offset by
−Removed: net income in the first six months of fiscal 2020.
+Added: The pre-shock NPV ratio increased 13 basis points to 11.93 percent at March 31, 2020 from 11.80 percent at June 30, 2019 and the post-shock NPV ratio increased 62 basis points to 11.29 percent at
+Added: March 31, 2020 from 10.67 percent at June 30, 2019.
+Added: The increase of the NPV ratios was primarily attributable to net income in the first nine months of fiscal 2020 and the change in interest rates, partly offset by a $7.5 million cash dividend
+Added: distribution from the Bank to Provident Financial Holdings, Inc.
+Added: in September 2019.
As with any method of measuring interest rate risk, certain shortcomings are inherent in the method of analysis presented in the foregoing tables.
17 unchanged sentences
savings deposits) that have no contractual maturity, the table presents estimated principal cash flows and, as applicable, the Corporation's historical experience, management's judgment and statistical analysis concerning their most likely withdrawal
−Removed: The following table represents the interest rate gap analysis of the Corporation's assets and liabilities as of December 31, 2019:
+Added: The following table represents the interest rate gap analysis of the Corporation's assets and liabilities as of March 31, 2020:
Term to Contractual Repricing, Estimated Repricing, or Contractual
−Removed: As of December 31, 2019
+Added: As of March 31, 2020
(Dollars In Thousands)
43 unchanged sentences
The Corporation’s current balance sheet and repricing characteristics;
−Removed: Forecasted balance sheet growth consistent with the business plan;
+Added: Forecast balance sheet growth consistent with the business plan;
Current interest rates and yield curves and management estimates of projected interest rates;
4 unchanged sentences
Immediate, permanent and parallel movements in interest rates of plus 300, 200 and 100 and minus 100 and 200 basis points.
−Removed: The following table describes the results of the analysis at December 31, 2019 and June 30, 2019.
−Removed: At December 31, 2019
+Added: The following table describes the results of the analysis at March 31, 2020 and June 30, 2019.
+Added: At March 31, 2020
At June 30, 2019
5 unchanged sentences
Net Interest Income
−Removed: At December 31, 2019 and June 30, 2019, the Corporation was asset sensitive as its interest-earning assets at those dates are expected to reprice more quickly than its interest-bearing liabilities
+Added: At March 31, 2020 and June 30, 2019, the Corporation was asset sensitive as its interest-earning assets at those dates are expected to reprice more quickly than its interest-bearing liabilities
during the subsequent 12-month period.
−Removed: Therefore, in a rising interest rate environment, the model projects an increase in net interest income over the subsequent 12-month period.
−Removed: In a falling interest rate environment, the results project a
−Removed: decrease in net interest income over the subsequent 12-month period, except under the -100 basis point shock at December 31, 2019 where more loans are forecast to hit their contractual floor interest rate.
+Added: Therefore, in a rising interest rate environment, the model projects an increase in net interest income over the subsequent 12-month period (except under the +100 basis point shock scenario at March 31, 2020).
+Added: In a falling interest rate environment, the results project a decrease in net interest income over the subsequent 12-month period.
Management believes that the assumptions used to complete the analysis described in the table above are reasonable.
6 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.