14 unchanged sentences
Policy guidelines define the percentage change in pretax net interest income by graduated risk tolerance levels of minimal, moderate, and high.
−Removed: We have temporarily suspended the analyses on downward rate shocks of 200 basis points or more because they do not provide meaningful insight into our interest rate risk position.
In order to monitor interest rate risk beyond the 24-month time horizon of rate shocks on pretax net interest income, we also perform EVE analyses.
4 unchanged sentences
Policy guidelines define the percent change in EVE by graduated risk tolerance levels of minimal, moderate, and high.
−Removed: We have also temporarily suspended the downward rate shocks of 200 basis points or more for EVE.
The table below reflects the rate shock analyses results for the 1 to 12 and 13 to 24 month periods of pretax net interest income and EVE.
−Removed: All results are in the minimal risk tolerance level.
December 31, 2022 December 31, 2021
11 unchanged sentences
(100) (6.1) (8.8) (2.6) (4.6) (8.4) (26.3)
+Added: (200) (10.2) (14.8) (7.7) — — —
+Added: (300) (14.1) (21.0) (17.0) — — —
+Added: (400) (21.1) (30.1) (32.7) — — —
The results from the rate shock analyses on net interest income are consistent with having an asset sensitive balance sheet.
5 unchanged sentences
This situation could result in an increase in net interest income and operating income.
−Removed: Our rate shock analyses show an improvement in the percentage change in pretax net interest income in the rates up scenarios and a decline in the rates down scenarios when comparing December 31, 2021 to December 31, 2020.
−Removed: We have become more asset sensitive due to our increased balances at the Federal Reserve.
−Removed: Our EVE analyses show a decline in the percentage change in EVE in the rates up scenarios and an improvement in the rates down scenario when comparing December 31, 2021 to December 31, 2020.
−Removed: The EVE decline is due to the impact of a steepened yield curve on the value of non-maturity deposits.
−Removed: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK - continued
+Added: S&T BANCORP, INC.
+Added: AND SUBSIDIARIES
+Added: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
+Added: Our rate shock analyses show less improvement in the percentage change in pretax net interest income in the rates up scenarios when comparing December 31, 2022 to December 31, 2021 because we have less excess cash and $500 million of received-fixed interest rate swaps were executed throughout 2022.
+Added: The percentage change in pretax net interest income in the rates down scenario shows a decline when comparing December 31, 2022 to December 31, 2021 because the higher rate environment has increased our asset yields more than our liability costs.
+Added: A decline in interest rates would result in less interest income with limited interest expense reduction.
+Added: Our EVE analyses show a decline in the percentage change in EVE in the rates up scenarios and an improvement in the rates down scenario when comparing December 31, 2022 to December 31, 2021 due to the impact of interest rates on the value of nonmaturity deposits.
In addition to rate shocks and EVE analyses, we perform a market risk stress test at least annually.
3 unchanged sentences
Simulation analyses may include the potential impact of rate changes other than the policy guidelines, yield curve shape changes, significant balance mix changes, and various growth scenarios.
+Added: S&T BANCORP, INC.
+Added: AND SUBSIDIARIES
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.