15 unchanged sentences
Our interest rate sensitivity is illustrated in the following table.
−Removed: The table reflects rate-sensitive positions as of June 30, 2021, and is not necessarily indicative of positions on other dates.
+Added: The table reflects rate-sensitive positions as of September 30, 2021, and is not necessarily indicative of positions on other dates.
The balances of interest rate sensitive assets and liabilities are presented in the periods in which they next reprice to market rates or mature and are aggregated to show the interest rate sensitivity gap.
7 unchanged sentences
Interest Rate Sensitivity Gap Analysis
−Removed: June 30, 2021
+Added: September 30, 2021
(in thousands) 0-3 mo
37 unchanged sentences
We are currently not using derivatives to manage our interest rate exposure, except for MSRs, although we may do so in the future if that appears advisable.
−Removed: For modeling purposes, the “shock test” scenarios as of June 30, 2021 and 2020 assume immediate, sustained 100 and 200 basis point increases in interest rates.
−Removed: As short-term rates declined during 2020 and remain low through the first six months of 2021, we do not believe that analysis of an assumed decrease in interest rates would provide meaningful results.
+Added: For modeling purposes, the “shock test” scenarios as of September 30, 2021 and 2020 assume immediate, sustained 100 and 200 basis point increases in interest rates.
+Added: As short-term rates declined during 2020 and remain low through the first nine months of 2021, we do not believe that analysis of an assumed decrease in interest rates would provide meaningful results.
We will continue to evaluate these scenarios as interest rates change, until short-term rates rise above 3.0%, at which point we will resume evaluations of shock scenarios in which interest rates decrease.
7 unchanged sentences
Twelve Months as Compared to Most Likely Scenario
−Removed: June 30, 2021 June 30, 2020
+Added: September 30, 2021 September 30, 2020
(in thousands) 100 bps Increase 200 bps Increase 100 bps Increase 200 bps Increase
3 unchanged sentences
Actual results will differ from simulated results due to timing, magnitude and frequency of interest rate changes as well as changes in market conditions, customer behavior and management strategies, among other factors.
−Removed: Our business relies upon a large volume of loans, derivative contracts and other financial instruments with attributes that are either directly or indirectly dependent on LIBOR to establish their interest rate and/or value.
In 2017, the U.K.
4 unchanged sentences
dollar LIBOR as a reference rate in new contracts as soon as practicable and in any event by December 31, 2021.
−Removed: At this time, it is not possible to predict what rate or rates may become accepted alternatives to LIBOR or what the effect of any such changes in views or alternatives may have on the financial markets for LIBOR-linked financial instruments.
−Removed: The full impact of alternatives to LIBOR on the valuations, pricing and operation of our financial instruments is not yet known;
−Removed: however, the primary instruments that may be impacted include loans, securities, borrowings and derivatives indexed to LIBOR that mature after December 31, 2021.
−Removed: We have established a working group, consisting of key stakeholders from throughout the company, to monitor developments relating to LIBOR uncertainty and changes and to guide the Bank's response.
−Removed: This team is currently working to ensure that our technology systems are prepared for the transition, our loan documents that reference LIBOR-based rates have been appropriately amended to reference other methods of interest rate determinations and internal and external stakeholders are apprised of the transition.
+Added: We have significant exposure to financial instruments with attributes that are either directly or indirectly dependent on LIBOR to establish their interest rate and/or value, some of which mature after December 31, 2021.
+Added: We have established a working group, consisting of key stakeholders from throughout the company, to monitor developments relating to LIBOR changes and to guide the Bank's response.
+Added: This team is continuing to work to ensure that our technology systems are prepared for the transition, our loan documents that reference LIBOR-based rates have been appropriately amended to reference other methods of interest rate determinations and internal and external stakeholders are apprised of the transition.
+Added: Based on our transition progress to date, we will be operationally ready to originate new alternative benchmark-based loans in the fourth quarter of 2021, during which time we will also cease originating LIBOR-based products.
+Added: We will begin originating Bloomberg Short Term Yield Index based loans in December 2021, and we are prepared with other alternative benchmarks, as necessary, to support the transition from LIBOR.
+Added: We will continue to evaluate the transition process and align our trajectory with regulatory guidelines regarding the cessation of LIBOR as well as monitor new developments for transitioning to alternative reference rates.
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.