2 unchanged sentences
The Company is subject to market risk primarily through the effect of changes in interest rates on its portfolio of assets held for purposes other than trading and interest rate derivative instruments that are used for managing interest rate risk.
−Removed: In addition, the Company has exposure to market risk through its trading desk that engages in fixed income and equity securities, derivatives and foreign exchange transactions to support the investing and hedging activities of customers.
+Added: In addition, the Company has exposure to market risk through its trading desks that engage in securities, derivatives and foreign exchange transactions to support the capital raising, investing and hedging activities of customers.
+Added: The Company may manage or reduce market risk through the use of hedging, short sale or other similar transactions intended to reduce market risk to be within tolerance levels designated by the Company’s market risk management strategy.
The Company uses Value-at-Risk (“VaR”) as a means to measure, monitor, and limit aggregate market risk on the trading portfolio.
1 unchanged sentence
VaR provides a consistent cross-asset measure for risk profiles and allows for diversification benefit based on historical correlations across market moves.
−Removed: As of September 30, 2024, the Company’s exposure through its trading desk does not pose a significant market risk to the Company.
+Added: As of March 31, 2025, the Company’s exposure through its trading desk does not pose a significant market risk to the Company.
All statistical models involve a degree of uncertainty and VaR is calculated at a statistical confidence interval of the 95th percentile based on one-year daily historic market moves.
3 unchanged sentences
Interest Rate Risk Management
−Removed: The Company’s interest rate sensitivity as of September 30, 2024 is illustrated in the following table.
−Removed: The table reflects rate-sensitive positions as of September 30, 2024 and is not necessarily indicative of positions on other dates.
+Added: The Company’s interest rate sensitivity as of March 31, 2025 is illustrated in the following table.
+Added: The table reflects rate-sensitive positions as of March 31, 2025 and is not necessarily indicative of positions on other dates.
The table does not take into account the effect of the Company’s derivatives designated as cash flow hedges.
25 unchanged sentences
Total $ 11,304,554
−Removed: (1) Available-for-sale debt securities and equity securities based on fair market value.
+Added: (1) Available-for-sale debt securities, equity securities and trading securities based on fair market value.
(2) Total loans include gross loans held for investment and loans held for sale.
10 unchanged sentences
Interest rate derivative contracts may be used to manage exposure to adverse fluctuations in these primary interest rate exposures as is discussed in more detail under the heading Use of Derivatives to Manage Interest Rate and Other Risks below.
−Removed: For modeling purposes, the “shock test” scenarios as of September 30, 2024 and September 30, 2023 assume immediate, sustained 100 and 200 basis point increases in interest rates as well as 100 and 200 basis point decreases in interest rates.
+Added: For modeling purposes, the “shock test” scenarios as of March 31, 2025 and March 31, 2024 assume immediate parallel, sustained 100 and 200 basis point increases in interest rates as well as 100 and 200 basis point decreases in interest rates.
The Company will continue to evaluate these scenarios as interest rates change.
5 unchanged sentences
Annualized Hypothetical Change in Net Interest Income
−Removed: September 30, 2024 September 30, 2023
+Added: March 31, 2025 March 31, 2024
+ 200 basis points 7.4 % 2.8 %
2 unchanged sentences
- 200 basis points (12.2) % (9.2) %
−Removed: The simulations used to manage market risk are based on numerous assumptions regarding the effect of changes in interest rates on the timing and extent of repricing characteristics, future cash flows and customer behavior.
+Added: The simulations used to manage interest rate risk are based on numerous assumptions regarding the effect of changes in interest rates on the timing and extent of repricing characteristics, future cash flows and customer behavior.
These assumptions are inherently uncertain and, as a result, the model cannot precisely estimate net interest income or precisely predict the impact of higher or lower interest rates on net interest income.
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.