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 September 30, 2020, the targeted Federal Funds
−Removed: Rate range was 0.00% to 0.25%, making an immediate change of -200 basis points or more 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 September 30, 2020
+Added: As of December 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 December 31, 2020
(dollars in thousands).
3 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 September 30, 2020 (“base case”).
+Added: Represents the increase (decrease) of the NPV at the indicated interest rate change in comparison to the NPV at December 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 September 30, 2020 and June
−Removed: At September 30, 2020
+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 December 31, 2020 and June 30,
+Added: At December 31, 2020
At June 30, 2020
7 unchanged sentences
Change in NPV Ratio
−Removed: The pre-shock NPV ratio decreased 31 basis points to 11.62 percent at September 30, 2020 from 11.93 percent at June 30, 2020 and the post-shock NPV ratio decreased 65 basis points to 9.92 percent
−Removed: at September 30, 2020 from 10.57 percent at June 30, 2020.
−Removed: The decrease of the NPV ratios was primarily attributable to a $5.0 million cash dividend distribution from the Bank to Provident Financial Holdings, Inc.
−Removed: in September 2020, partly offset by
−Removed: net income in the first three months of fiscal 2021 and the change in interest rates.
+Added: The pre-shock NPV ratio increased 21 basis points to 12.14 percent at December 31, 2020 from 11.93 percent at June 30, 2020 and the post-shock NPV ratio increased 16 basis points to 10.73 percent
+Added: at December 31, 2020 from 10.57 percent at June 30, 2020.
+Added: The increase of the NPV ratios was primarily attributable to net income in the first six months of fiscal 2021 and the changes in the composition of the balance sheet and interest rates,
+Added: partly offset by a $5.0 million cash dividend distribution from the Bank to Provident Financial Holdings, Inc.
+Added: in September 2020.
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 September 30, 2020:
+Added: The following table represents the interest rate gap analysis of the Corporation's assets and liabilities as of December 31, 2020:
Term to Contractual Repricing, Estimated Repricing, or Contractual
−Removed: As of September 30, 2020
+Added: As of December 31, 2020
(Dollars In Thousands)
26 unchanged sentences
Management views
−Removed: non-interest bearing deposits to be the least sensitive to changes in market interest rates and these accounts are therefore characterized as long-term funding.
−Removed: Interest-bearing checking deposits are considered more sensitive, followed by increased
−Removed: sensitivity for savings and money market deposits.
+Added: non-interest bearing checking deposits to be the least sensitive to changes in market interest rates and these accounts are therefore characterized as long-term funding.
+Added: Interest-bearing checking deposits are considered more sensitive, followed by
+Added: increased sensitivity for savings and money market deposits.
For the purpose of calculating gap, a portion of these interest-bearing deposit balances are assumed to be subject to estimated repricing as follows:
−Removed: interest-bearing checking deposits at 15% per
−Removed: year, savings deposits at 20% per year and money market deposits at 50% in the first and second years.
+Added: interest-bearing checking deposits at
+Added: 15% per year, savings deposits at 20% per year and money market deposits at 50% in the first and second years.
The gap results presented above could vary substantially if different assumptions are used or if actual experience differs from the assumptions used in the preparation of the gap analysis.
16 unchanged sentences
Immediate, permanent and parallel movements in interest rates of plus 300, 200 and 100 and minus 100 basis points.
−Removed: The following table describes the results of the analysis at September 30, 2020 and June 30, 2020.
−Removed: At September 30, 2020
+Added: The following table describes the results of the analysis at December 31, 2020 and June 30, 2020.
+Added: At December 31, 2020
At June 30, 2020
5 unchanged sentences
Net Interest Income
−Removed: At September 30, 2020 and June 30, 2020, 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 December 31, 2020 and June 30, 2020, 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.
1 unchanged sentence
In a falling interest rate environment, the results project a slight
−Removed: increase in net interest income over the subsequent 12-month period at September 30, 2020, as compared to a slight decrease in net interest income over the subsequent 12-month period at June 30, 2020.
+Added: decrease in net interest income over the subsequent 12-month period at December 31, 2020 and June 30, 2020.
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.