7 unchanged sentences
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.
−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 100 basis point and 200 basis point decreases on net interest income and is monitored at least quarterly.
+Added: The analysis of the impact on net interest income over a twelve month period is subjected to instantaneous changes in market rates 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, 2024, holding all other changes in the balance sheet static.
1 unchanged sentence
% Change in Projected Baseline Net Interest Income
−Removed: December 31, 2022 December 31, 2021
−Removed: Changes in Interest Rates 1-12 months 13-24 months 1-12 months 13-24 months
+Added: December 31, 2023
+Added: Changes in Interest Rates 1-12 months 13-24 months
+2.00% (9.2%) (7.7%)
+1.00% (3.7) (2.4)
−Removed: Current — — — —
-2.00% 2.6 (1.2)
−Removed: -2.00% (8.9) (14.4) N/A N/A
+Added: -3.00% 1.7 (5.3)
The Company's calculation of interest rate sensitivity for the year ended December 31, 2023 is presented below.
2 unchanged sentences
This analysis includes assumptions for prepayments of loans and securities and assumptions for core deposit re-pricing.
−Removed: The Company utilizes interest rate floors for certain variable rate loans to offset the potential impact of declining interest rates.
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.
21 unchanged sentences
2 Securities are stated at carrying value.
−Removed: 3 Includes loans available-for-sale.
+Added: 3 Includes loans held for sale.
Market risk refers to potential losses arising from changes in interest rates, and other relevant market rates or prices.
13 unchanged sentences
Particularly important are the assumptions driving prepayments and the expected changes in balances and pricing of the indeterminate life deposit portfolios.
−Removed: Core deposits are a more significant funding source for the Company, making the lives attached to core deposits more important to the accuracy of our modeling of EVE.
+Added: Core deposits are a more significant
+Added: funding source for the Company, making the lives attached to core deposits more important to the accuracy of our modeling of EVE.
The Company periodically reassesses its assumptions regarding the indeterminate lives of core deposits utilizing an independent third party resource to assist.
4 unchanged sentences
+2.00% (14.8)
−Removed: +1.00% 4.3 10.2
−Removed: -1.00% (5.4) (10.8)
−Removed: -2.00% (13.9) N/A
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.
8 unchanged sentences
Inflation and related increases in interest rates generally decrease the market value of investments and loans held and may adversely affect liquidity, earnings, and shareholders’ equity.
−Removed: Mortgage originations and re-financings tend to slow as interest rates increase, and higher interest rates likely will reduce the Company’s earnings from such activities and the income from the sale of residential mortgage loans in the secondary market.
+Added: Mortgage origination and refinancing tends to slow as interest rates increase, and higher interest rates will likely reduce the Company’s earnings from such activities and the income from the sale of residential mortgage loans in the secondary market.
Table 1 - Capital Resources
9 unchanged sentences
Common Equity Tier 1 Capital $ 1,493,499 $ 1,277,295
−Removed: Qualifying subordinated debt $ 84,533 $ 71,646
+Added: Qualifying Trust Preferred Debt $ 72,207 $ 84,533
Total Tier 1 Capital $ 1,565,710 $ 1,361,832
2 unchanged sentences
$ 126,553 $ 92,336
+Added: Qualifying subordinated debt 21,534 —
Total Tier 2 Capital 148,087 92,336
25 unchanged sentences
Consumer 251,567 2 286,587 3
−Removed: Paycheck Protection Program 4,590 — % 91,107 2 %
Total Loans $ 10,062,940 100 % $ 8,144,724 100 %
3 unchanged sentences
After one year but within five years:
−Removed: After five year but within fifteen years:
+Added: After five years but within fifteen years:
After fifteen years:
6 unchanged sentences
Consumer 11,568 35,957 79,469 12,325 58,870 24,284 29,094 251,567
−Removed: Paycheck Protection Program 54 — 4,536 — — — — 4,590
Total $ 1,011,923 $ 676,291 $ 2,302,805 $ 1,300,180 $ 2,218,339 $ 1,456,698 $ 1,096,704 $ 10,062,940
12 unchanged sentences
Consumer 0.05 0.01 —
−Removed: Paycheck Protection Program — % — % — %
Total ratio of net charge-offs to average loans outstanding 0.22 % 0.01 % 0.05 %
2 unchanged sentences
(In thousands, except percentages) 2023 2022
−Removed: Allocation by Loan Type Amount % of Total Allowance Amount % of Total Allowance Amount % of Total Allowance
+Added: Allocation by Loan Type Amount % of Total Allowance Amount % of Total Allowance
Construction and land development $ 8,637 6 % $ 6,464 6 %
4 unchanged sentences
Consumer 13,118 9 12,869 11
−Removed: Paycheck Protection Program — — — — — —
Total Allowance for Credit Losses on Loans $ 148,931 100 % $ 113,895 100 %
22 unchanged sentences
Accruing loans past due 90 days or more $ 1,179 $ 1,848
−Removed: Loans restructured and in compliance with modified terms 3
−Removed: 4,032 3,917 4,182
−Removed: 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.
+Added: 1 Interest income that could have been recorded during 2023 and 2022 related to nonaccrual loans was $0.5 million and $1.6 million, respectively, none of which was included in interest income or net income.
2 Net of unearned income.
−Removed: 3 Interest income that would have been recorded based on original contractual terms was $0.3 million, $0.2 million, and $0.2 million, respectively, for 2022, 2021, and 2020.
−Removed: The amount included in interest income under the modified terms for 2022, 2021, and 2020 was $0.1 million, $0.2 million, and $0.3 million respectively.
Table 7 - Maturity Distribution of Available-For-Sale Debt Securities
6 unchanged sentences
government agencies $ 1,185 $ 6,066 $ 8,965 $ 21,502 $ 37,718
−Removed: Mortgage-backed securities and collateralized mortgage obligations of U.S.
+Added: Residential mortgage-backed securities and collateralized mortgage obligations of U.S.
government-sponsored entities 13 2,659 5,255 1,144,826 1,152,753
+Added: Commercial mortgage-backed securities and collateralized mortgage obligations of U.S.
+Added: government-sponsored entities 24,950 170,046 109,497 80,520 385,013
Private mortgage-backed securities and collateralized mortgage obligations — — 1,161 134,717 135,878
5 unchanged sentences
government agencies $ 1,172 $ 6,069 $ 8,929 $ 21,275 $ 37,445
−Removed: Mortgage-backed securities and collateralized mortgage obligations of U.S.
+Added: Residential mortgage-backed securities and collateralized mortgage obligations of U.S.
government-sponsored entities 13 2,619 5,065 961,684 969,381
+Added: Commercial mortgage-backed securities and collateralized mortgage obligations of U.S.
+Added: government-sponsored entities 24,465 163,673 101,636 78,498 368,272
Private mortgage-backed securities and collateralized mortgage obligations — — 1,086 123,917 125,003
6 unchanged sentences
government agencies 3.99 % 4.81 % 6.43 % 5.83 % 5.75 %
−Removed: Mortgage-backed securities and collateralized mortgage obligations of U.S.
+Added: Residential mortgage-backed securities and collateralized mortgage obligations of U.S.
government-sponsored entities 2.79 3.69 3.09 2.03 2.03
+Added: Commercial mortgage-backed securities and collateralized mortgage obligations of U.S.
+Added: government-sponsored entities 2.92 3.16 3.14 5.69 3.67
Private mortgage-backed securities and collateralized mortgage obligations — — 6.31 2.76 2.79
10 unchanged sentences
Amortized Cost
−Removed: Mortgage-backed securities and collateralized mortgage obligations of U.S.
+Added: Residential mortgage-backed securities and collateralized mortgage obligations of U.S.
government-sponsored entities $ — $ — $ — $ 590,676 $ 590,676
+Added: Commercial mortgage-backed securities and collateralized mortgage obligations of U.S.
+Added: government-sponsored entities 196 20,679 62,500 6,262 89,637
Total Held-to-Maturity Debt Securities $ 196 $ 20,679 $ 62,500 $ 596,938 $ 680,313
−Removed: Mortgage-backed securities and collateralized mortgage obligations of U.S.
+Added: Residential mortgage-backed securities and collateralized mortgage obligations of U.S.
government-sponsored entities $ — $ — $ — $ 478,930 $ 478,930
+Added: Commercial mortgage-backed securities and collateralized mortgage obligations of U.S.
+Added: government-sponsored entities 195 18,960 55,493 4,781 79,429
Total Held-to-Maturity Debt Securities $ 195 $ 18,960 $ 55,493 $ 483,711 $ 558,359
Weighted Average Yield 1
−Removed: Mortgage-backed securities and collateralized mortgage obligations of U.S.
+Added: Residential mortgage-backed securities and collateralized mortgage obligations of U.S.
government-sponsored entities — % — % — % 1.88 % 1.88 %
+Added: Commercial mortgage-backed securities and collateralized mortgage obligations of U.S.
+Added: government-sponsored entities — 2.48 2.29 1.67 2.28
Total Held-to-Maturity Debt Securities — % 2.48 % 2.29 % 1.88 % 1.93 %
26 unchanged sentences
Mortgage banking fees 378 410 576 426 426 434 932 1,686
−Removed: Marine finance fees 208 209 312 191 147 152 177 189
+Added: Insurance agency income 1,066 1,183 1,160 1,101 805 — — —
SBA gains 921 613 249 322 105 108 473 156
1 unchanged sentence
Other income 4,668 4,307 4,755 6,574 3,239 4,186 4,073 3,061
−Removed: Securities gains (losses), net 18 (362) (300) (452) (379) (30) (55) (114)
+Added: Securities (losses) gains, net
+Added: (2,437) (387) (176) 107 18 (362) (300) (452)
Total noninterest income 17,338 17,793 21,576 22,445 17,651 16,103 16,964 15,373
10 unchanged sentences
Amortization of intangibles 6,888 7,457 7,654 6,727 4,763 1,446 1,446 1,446
−Removed: Foreclosed property expense and net (gain) loss on sale (411) 9 (968) (164) (175) 66 (90) (65)
+Added: Other real estate owned expense and net loss (gain) on sale
+Added: 573 274 (57) 195 (411) 9 (968) (164)
Provision for credit losses on unfunded commitments — — — 1,239 — 1,015 — 142
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.