Quantitative and Qualitative Disclosures about Market Risk.
−Removed: liability management involves developing, executing and monitoring strategies to maintain appropriate liquidity, maximize net interest
−Removed: income and minimize the impact that significant fluctuations in market interest rates would have on current and future earnings.
+Added: liability management involves developing, executing and monitoring strategies to maintain appropriate liquidity, maximizing net interest
+Added: income and minimizing the impact that significant fluctuations in market interest rates would have on current and future earnings.
business of the Company and the composition of its balance sheet consist of investments in interest-earning assets (primarily loans,
48 unchanged sentences
are several ways an institution can manage interest rate risk including:
−Removed: 1) matching repricing periods for new assets and liabilities,
−Removed: for example, by shortening or lengthening terms of new loans, investments, or liabilities;
−Removed: 2) selling existing assets or repaying certain
+Added: 1) matching repricing periods for new assets and
+Added: liabilities, for example, by shortening or lengthening terms of new loans, investments, or liabilities;
+Added: 2) selling existing assets
+Added: or repaying certain liabilities;
and 3) hedging existing assets, liabilities, or anticipated transactions.
−Removed: An institution might also invest in more complex
−Removed: financial instruments intended to hedge or otherwise change interest rate risk.
−Removed: Interest rate swaps, futures contracts, options on futures
−Removed: contracts, and other such derivative financial instruments can be used for this purpose.
−Removed: Because these instruments are sensitive to interest
−Removed: rate changes, they require management’s expertise to be effective.
−Removed: The Company has not purchased derivative financial instruments
−Removed: in the past, but during 2024 and 2023 the Company entered into interest rate swap agreements as an accommodation to certain loan customers
−Removed: (see Note 8 to the Consolidated Financial Statements).
−Removed: The Company may purchase such instruments in the future if market conditions are
+Added: An institution might also
+Added: invest in more complex financial instruments intended to hedge or otherwise change interest rate risk.
+Added: Interest rate swaps, futures
+Added: contracts, options on futures contracts, and other such derivative financial instruments can be used for this purpose.
+Added: Because these
+Added: instruments are sensitive to interest rate changes, they require management’s expertise to be effective.
+Added: The Company has not
+Added: purchased derivative financial instruments in the past, but during 2025 and 2024 the Company entered into interest rate swap
+Added: agreements as an accommodation to certain loan customers (see Note 8 to the Consolidated Financial Statements).
+Added: The Company may
+Added: purchase such instruments in the future if market conditions are favorable.
Company manages its interest rate risk by the employment of strategies to assure that desired levels of both interest-earning assets
13 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.