6 unchanged sentences
The Company's Asset and Liability Management Committee (“ALCO”) uses simulation analysis to monitor changes in net interest income due to changes in market interest rates.
−Removed: The simulation of rising, declining and flat interest rate scenarios allows management to monitor and adjust interest rate sensitivity to minimize the impact of market interest rate swings.
−Removed: The analysis of the impact on net interest income over a twelve month period is subjected to instantaneous changes in market rates of 100 basis point and 200 basis point increases and a 100 basis point decrease on net interest income and is monitored on a quarterly basis.
+Added: The simulation of rising, declining and flat interest rate scenarios allows management to monitor and adjust interest rate sensitivity to assess the impact of market interest rate swings.
+Added: The analysis of the impact on net interest income over a twelve month period is subjected to instantaneous changes in market rates of 100 basis point and 200 basis point increases and 100 basis point and 200 basis point decreases on net interest income and is monitored at least quarterly.
The following table presents the ALCO simulation model's projected impact of a change in interest rates on the projected baseline net interest income for the 12 and 24 month periods beginning on January 1, 2023, holding all other changes in the balance sheet static.
−Removed: This change in interest rates assumes parallel shifts in the yield curve and does not take into account changes in the slope of the yield curve.
+Added: This change in interest rates assumes parallel shifts in the yield curve and does not take into account changes in the slope of the yield curve nor changes in balance sheet size or mix.
% Change in Projected Baseline Net Interest Income
+Added: December 31, 2022 December 31, 2021
Changes in Interest Rates 1-12 months 13-24 months 1-12 months 13-24 months
3 unchanged sentences
-1.00% (3.7) (5.9) (2.5) (8.8)
+Added: -2.00% (8.9) (14.4) N/A N/A
The Company's calculation of interest rate sensitivity for the year ended December 31, 2022 is presented below.
4 unchanged sentences
The computations of interest rate sensitivity are based on the static balance sheet and do not necessarily include certain actions management may undertake to manage this risk in response to changes in interest rates in the future.
−Removed: This may include the use of derivative financial instruments, such as interest rate swaps, options, caps, floors, futures and forward contracts as components of the Company’s risk management profile.
+Added: This may include specific efforts to change the size of the balance sheet or the relative composition of fixed versus variable rate assets and liabilities as well as qualitative changes that could impact quantitative performance.
Interest Rate Sensitivity Analysis 1
37 unchanged sentences
The Company periodically reassesses its assumptions regarding the indeterminate lives of core deposits utilizing an independent third party resource to assist.
−Removed: With lower interest rates over a prolonged period, the average lives of core deposits have trended higher and favorably impacted our model estimates of EVE for higher rates.
The following table presents the projected impact of a change in interest rates on the balance sheet.
5 unchanged sentences
-1.00% (5.4) (10.8)
−Removed: While an instantaneous and severe shift in interest rates is used in this analysis to provide an estimate of exposure under an extremely adverse scenario, a gradual shift in interest rates would have a much more modest impact.
+Added: -2.00% (13.9) N/A
+Added: While an instantaneous and severe shift in interest rates is used in this analysis, a gradual shift in interest rates would have a much more modest impact.
Since EVE measures the discounted present value of cash flows over the estimated lives of instruments, the change in EVE does not directly correlate to the degree that earnings would be impacted over a shorter time horizon, i.e., the next fiscal year.
19 unchanged sentences
Common Equity Tier 1 Capital $ 1,277,295 $ 1,075,656
−Removed: Qualifying trust preferred securities 71,646 71,365
+Added: Qualifying subordinated debt $ 84,533 $ 71,646
Total Tier 1 Capital $ 1,361,832 $ 1,147,306
54 unchanged sentences
Construction and land development — % — % — %
−Removed: Commercial real estate - owner occupied — % — % n/a
−Removed: Commercial real estate - non-owner occupied 0.02 % — % n/a
−Removed: Commercial real estate n/a n/a (0.01) %
+Added: Commercial real estate - owner occupied — % — % — %
+Added: Commercial real estate - non-owner occupied — % 0.02 % — %
Residential real estate — % (0.02) % — %
3 unchanged sentences
Total ratio of net charge-offs to average loans outstanding 0.01 % 0.05 % 0.13 %
−Removed: 1 With the adoption of ASC Topic 326 -Financial Instruments - Credit Losses on January 1, 2020, the Company re-evaluated the aggregation of loans into segments, and separated Commercial Real Estate - Owner Occupied from Commercial Real Estate - Non Owner Occupied.
−Removed: In prior years, all Commercial Real Estate loans were considered a single segment.
1 Net of unearned income.
3 unchanged sentences
Construction and land development $ 6,464 6 % $ 2,751 3 % $ 4,920 5 %
−Removed: Commercial real estate - owner occupied 8,579 10 % 9,868 11 % n/a n/a
−Removed: Commercial real estate - non-owner occupied 36,617 44 % 38,266 41 % n/a n/a
−Removed: Commercial real estate n/a n/a n/a n/a 13,224 38 %
+Added: Commercial real estate - owner occupied 6,051 5 8,579 10 9,868 11
+Added: Commercial real estate - non-owner occupied 43,258 38 36,617 44 38,266 41
Residential real estate 29,605 26 12,811 16 17,500 19
1 unchanged sentence
Consumer 12,869 11 2,813 3 3,489 4
−Removed: Paycheck Protection Program $ — — % $ — — % n/a n/a
+Added: Paycheck Protection Program — — — — — —
Total Allowance for Credit Losses on Loans $ 113,895 100 % $ 83,315 100 % $ 92,733 100%
−Removed: 1 With the adoption of ASC Topic 326 -Financial Instruments - Credit Losses on January 1, 2020, the Company re-evaluated the aggregation of loans into segments, and separated Commercial Real Estate - Owner Occupied from Commercial Real Estate - Non Owner Occupied.
−Removed: In prior years, all Commercial Real Estate loans were considered a single segment.
Table 6 - Nonperforming Assets
2 unchanged sentences
Construction and land development $ 549 $ 259 $ 167
−Removed: Commercial real estate loans - owner occupied 3,966 8,181 n/a
−Removed: Commercial real estate loans - non-owner occupied 5,905 8,084 n/a
−Removed: Commercial real estate n/a n/a 6,520
+Added: Commercial real estate loans - owner occupied 2,340 3,966 8,181
+Added: Commercial real estate loans - non-owner occupied 4,483 5,905 8,084
Residential real estate loans 9,457 13,045 12,492
4 unchanged sentences
Construction and land development $ 109 $ 8,828 $ 6,715
−Removed: Commercial real estate loans - owner occupied — — n/a
−Removed: Commercial real estate loans - non-owner occupied 3,395 5,963 n/a
−Removed: Commercial real estate n/a n/a 5,111
+Added: Commercial real estate loans - non-owner occupied 221 3,395 5,963
Residential real estate loans 200 — 72
10 unchanged sentences
4,032 3,917 4,182
−Removed: 1 With the adoption of ASC Topic 326 -Financial Instruments - Credit Losses on January 1, 2020, the Company re-evaluated the aggregation of loans into segments, and separated Commercial Real Estate - Owner Occupied from Commercial Real Estate - Non Owner Occupied.
−Removed: In prior years, all Commercial Real Estate loans were considered a single segment.
1 Interest income that could have been recorded during 2022, 2021, and 2020 related to nonaccrual loans was $1.6 million, $0.9 million, and $1.1 million, respectively, none of which was included in interest income or net income.
15 unchanged sentences
Obligations of state and political subdivisions 1,901 14,405 3,123 9,921 29,350
+Added: Other debt securities — — — 22,640 22,640
Total Available-For-Sale Debt Securities $ 1,990 $ 251,672 $ 263,417 $ 1,602,224 $ 2,119,303
6 unchanged sentences
Obligations of state and political subdivisions 1,998 14,280 3,030 8,433 27,741
+Added: Other debt securities — — — 22,410 22,410
Total Available-For-Sale Debt Securities $ 2,087 $ 240,906 $ 246,205 $ 1,382,544 $ 1,871,742
7 unchanged sentences
Obligations of state and political subdivisions 2.65 2.76 2.41 2.45 2.61
+Added: Other debt securities — — — 4.92 4.92
Total Available-For-Sale Debt Securities 2.65 % 3.06 % 4.03 % 2.44 % 2.71 %
47 unchanged sentences
Other income 3,836 3,977 3,761 2,870 6,316 5,228 2,249 3,744
−Removed: Securities (losses) gains, net (379) (30) (55) (114) (18) 4 1,230 19
+Added: Securities gains (losses), net 18 (362) (300) (452) (379) (30) (55) (114)
Total noninterest income 17,651 16,103 16,964 15,373 18,706 19,028 15,322 17,671
10 unchanged sentences
Amortization of intangibles 4,763 1,446 1,446 1,446 1,304 1,306 1,212 1,211
−Removed: Foreclosed property expense and net loss (gain) on sale (175) 66 (90) (65) 1,821 512 245 (315)
+Added: Foreclosed property expense and net (gain) loss on sale (411) 9 (968) (164) (175) 66 (90) (65)
Provision for credit losses on unfunded commitments — 1,015 — 142 — 133 — —
16 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.