22 unchanged sentences
A key element of our asset/liability management plan is to protect net earnings by managing the maturity or re-pricing mismatch between our interest-earning assets and our rate-sensitive liabilities.
−Removed: We seek to reduce exposure to earnings by extending funding maturities through the use of FHLB advances, through the use of adjustable rate loans and through the sale of certain fixed rate loans in the secondary market.
+Added: We seek to reduce exposure to earnings by
+Added: Table of Conten t s
+Added: extending funding maturities through the use of FHLB advances, through the use of adjustable-rate loans and through the sale of certain fixed-rate loans in the secondary market.
As part of our efforts to monitor and manage interest-rate risk, we maintain an interest-rate risk model and utilize software and resources provided by a third party.
4 unchanged sentences
EVE values only the current position of the balance sheet at December 31, 2020, and therefore does not incorporate any new business assumptions that might be inherent in a simulation of net interest income.
−Removed: The following table projections assume instantaneous parallel shifts upward of the yield curve of 100, 200, 300 and 400 basis points and downward of the yield curve 100 and 200 basis points occurring immediately.
−Removed: Given that the targeted Federal Funds Rate at December 31, 2019 was a range of 1.50 to 1.75%, a 300 and 400 basis point reduction in rates is not reported.
+Added: The following table projections assume instantaneous parallel shifts upward of the yield curve of 100, 200, 300 and 400 basis points and downward of the yield curve 100, 200, 300, and 400 basis points (assuming the shift does not result in negative interest rates) occurring immediately.
+Added: Given that the targeted Federal Funds Rate at December 31, 2020 was 0.09%, and the EVE model does not allow for negative interest rates, the downward shifts of 100- through 400-basis points are not reported.
Management and the Board of Directors review these measurements on a quarterly basis to determine whether our interest-rate exposure is within the limits established by the Board of Directors.
1 unchanged sentence
For interest rate increases of 100, 200, 300 and 400 basis points, our internal policy states that our EVE percentage change should not decrease greater than 10%, 20%, 25% and 30%, respectively and that our EVE ratio should not fall below 9%, 8%, 6% and 5%, respectively.
−Removed: For interest rate decreases of 100 and 200 basis points, our internal policy states that our EVE
−Removed: percentage change should not decrease greater than 10% and 20%, respectively, and that our EVE ratio should not fall below 9% and 8%, respectively.
−Removed: As indicated in the following table (dollars in thousands), our EVE shows an asset sensitive position at December 31, 2019 due to the duration of our interest-bearing liabilities exceeding our interest-earning assets.
+Added: For interest rate decreases of 100 and 200 basis points, our internal policy states that our EVE percentage change should not decrease greater than 10% and 20%, respectively, and that our EVE ratio should not fall below 9% and 8%, respectively.
+Added: As indicated in the following table (dollars in thousands), our EVE shows an asset sensitive position at December 31, 2020.
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.
December 31, 2020
−Removed: Change in Interest Rates in Basis Points (bps)
−Removed: Economic Value of Equity
+Added: Change in Interest Rates in Basis Points (bps) Economic Value of Equity EVE
+Added: $ Amount $ Change % Change
+Added: +400 $ 140,541 $ 29,439 26.49 % 17.2 %
+Added: +300 135,754 24,642 22.18 16.4
+Added: +200 129,996 18,884 17.00 15.5
+Added: +100 122,123 11,011 10.00 14.4
+Added: 0 111,112 — — 12.9
In addition to monitoring selected measures of EVE, management also monitors effects on net interest income resulting from increases or decrease in rates.
10 unchanged sentences
We consider all of these factors in monitoring our exposure to interest rate risk.
+Added: Table of Conten t s
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.