48 unchanged sentences
Down 400 basis points
−Removed: Due to a number of loans in our loan portfolio with fixed interest rates, our net interest income will be negatively impacted in a rising interest rate environment.
−Removed: Specifically, in a rising interest rate environment, net interest income will decrease in year one, as indicated in the table above as our interest-bearing liabilities are expected to continue to increase faster than interest-earning assets.
−Removed: Conversely, in a falling interest rate environment, our net interest income will be positively impacted as our interest-bearing liabilities reprice faster in relation to our interest-earning assets.
−Removed: We attempt to limit our interest rate risk through managing the repricing characteristics of our assets and liabilities.
−Removed: As with any method of measuring interest rate risk, certain shortcomings are inherent in the method of analysis presented in the foregoing table.
−Removed: For example, although certain assets and liabilities may have similar maturities or periods of repricing, they may react in different degrees to changes in market interest rates.
−Removed: Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types may lag behind changes in market rates.
−Removed: Additionally, certain assets, such as ARM loans, have features that restrict changes in interest rates on a short-term basis and over the life of the asset.
−Removed: Furthermore, in the event of a change in interest rates, expected rates of prepayments on loans and early withdrawals from certificates could deviate significantly from those assumed in calculating the table.
+Added: As of March 31, 2025, the Company’s interest rate risk simulation model indicates that net interest income is more negatively affected by rising interest rates than it is positively impacted by falling rates, particularly over the short term.
+Added: This is primarily due to the presence of a significant number of fixed-rate loans in the loan portfolio, which limits the repricing of interest-earning assets relative to interest-bearing liabilities.
+Added: In a rising interest rate environment, net interest income is projected to decline over the first 12 months, as interest-bearing liabilities are expected to reprice more quickly than interest-earning assets.
+Added: Conversely, in a falling interest rate environment, net interest income is expected to increase, as interest-bearing liabilities tend to reprice more rapidly than interest-earning assets.
+Added: The Company seeks to manage interest rate risk through active monitoring and adjustment of the repricing characteristics of its assets and liabilities.
+Added: However, as with any method of measuring interest rate risk, the simulation model is subject to certain inherent limitations.
+Added: For instance, assets and liabilities with similar maturities or repricing characteristics may respond differently to changes in market interest rates.
+Added: Some rates may change in anticipation of or lag behind market rate movements, while others, such as ARM loans, include caps and lags that limit near-term rate adjustments.
+Added: Additionally, changes in interest rates may materially alter client behaviors, such as prepayment speeds on loans or early withdrawals from time deposits, which may deviate significantly from the assumptions used in the model.
+Added: As such, actual results could differ materially from those projected by the model.
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.