QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Our primary market risk is interest rate fluctuation, and management has procedures in place to evaluate and mitigate this risk.
+Added: The Company’s primary market risk is interest rate fluctuation, and management has procedures in place to evaluate and mitigate this risk.
This risk and these procedures are discussed in Part II, Item 7A.
of the 2024 Annual Report under the caption “Quantitative and Qualitative Disclosures About Market Risk.” Management recognizes that recent changes in interest rates have had an impact on the Company’s market risk.
−Removed: The procedures used to evaluate and mitigate these risks remain unchanged, and we continue to monitor our actual and simulated sensitivity positions since December 31, 2024.
+Added: The procedures used to evaluate and mitigate these risks remain unchanged, and we continue to monitor actual and simulated sensitivity positions since December 31, 2024.
The Company prepares a current base case and several alternative simulations at least quarterly.
10 unchanged sentences
It is management’s goal to manage the Bank’s portfolios so that NII at risk over 12 and 24-month periods and the economic value of equity at risk do not exceed policy guidelines at the various interest rate shock levels .
−Removed: As of June 30, 2025 and December 31, 2024, the Com pany exceeded Board approved limits for percentage change in economic value of equity in the interest rate shock of -200 .
+Added: As of September 30, 2025 and December 31, 2024, the Com pany exceeded Board approved limits for percentage change in economic value of equity in the interest rate shock of -200 .
In both periods, the Company exceeded board approved levels due to average lives and the low level of market rates on non-maturing deposit instruments.
5 unchanged sentences
Policy limit +/- 25% +/- 20% +/- 15% +/- 10% +/- 10% +/- 15%
−Removed: June 30, 2025 (7.6) % (5.2) % (3.2) % (1.4) % 0.7 % (0.6) %
+Added: September 30, 2025 (3.8) % (2.4) % (1.3) % (0.5) % (0.2) % (2.4) %
December 31, 2024 (3.8) % (2.4) % (1.3) % (0.5) % (0.1) % (2.1) %
5 unchanged sentences
Policy limit +/- 40% +/- 30% +/- 20% +/- 10% +/- 10% +/- 20%
−Removed: June 30, 2025 13.5 % 12.8 % 10.7 % 6.7 % (9.4) % (22.6) %
+Added: September 30, 2025 16.1 % 14.9 % 12.2 % 7.4 % (10.3) % (24.6) %
December 31, 2024 15.2 % 14.2 % 11.7 % 7.2 % (10.0) % (24.2) %
2 unchanged sentences
Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types may lag behind changes in market rates.
−Removed: Additionally, certain assets, such as adjustable rate mortgage loans, have features which restrict changes in interest rates on a short-term basis and over the life of the
+Added: Additionally, certain assets,
+Added: such as adjustable rate mortgage loans, have features which restrict changes in interest rates on a short-term basis and over the life of the asset.
Further, if interest rates change, expected rates of prepayments on loans and early withdrawals from certificates of deposit could deviate significantly from those assumed in calculating the tables.
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.