29 unchanged sentences
EVE values only the current position of the balance sheet at December 31, 2022, and therefore does not incorporate any new business assumptions that might be inherent in a simulation of net interest income.
−Removed: Our projections generally 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.
−Removed: Given that the targeted Federal Funds Rate at December 31, 2021 was 0.07%, and the EVE model does not allow for negative interest rates, the downward shifts of 100- through 400-basis points are not reported in the table below.
+Added: Our projections generally assume instantaneous parallel shifts upward and downward of the yield curve of 100, 200, 300 and 400 basis points (assuming the downward shift does not result in negative interest rates) occurring immediately.
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.
Our asset/liability management strategy dictates acceptable limits on the amounts of change in given changes in interest rates.
−Removed: 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 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, 2021.
+Added: For interest rate increases and decreases 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%, 5% and 5%, respectively.
+Added: As indicated in the following table (dollars in thousands), our EVE shows a liability sensitive position at December 31, 2022.
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.
7 unchanged sentences
0 175,738 — — 19.5
+Added: -100 181,422 5,684 3.23 19.5
+Added: -200 180,306 4,568 2.60 18.8
+Added: -300 173,108 (2,630) (1.50) 17.5
+Added: -400 $ 162,556 (13,182) (7.50) 16.0 %
In addition to monitoring selected measures of EVE, management also monitors effects on net interest income resulting from increases or decrease in rates.
1 unchanged sentence
In managing our assets/liability mix, depending on the relationship between long- and short-term interest rates, market conditions and consumer preference, we may place somewhat greater emphasis on maximizing our net interest margin than on strictly matching the interest-rate sensitivity of assets and liabilities.
−Removed: Management also believes that the increased net income which may result from an acceptable mismatch in the actual maturity or re-pricing of its asset and liability portfolios can, during periods of declining or stable interest rates, provide sufficient returns to justify the increased exposure to sudden and unexpected increases in interest rates which may result from such a mismatch.
+Added: Management also believes that the increased net income which may result from an acceptable mismatch in the actual maturity or re-pricing of our asset and liability portfolios can, during periods of declining or stable interest rates, provide sufficient returns to justify the increased exposure to sudden and unexpected increases in interest rates which may result from such a mismatch.
Management believes that our level of interest-rate risk is acceptable under this approach.
7 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.