17 unchanged sentences
Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions, including relative levels of market interest rates, loan prepayments and deposit decay, and should not be relied upon as indicative of actual results.
−Removed: The following table presents the estimated changes in the Company’s EVE at December 31, 2023, that would result from the indicated instantaneous changes in the United States Treasury yield curve and other relevant market interest rates.
+Added: The following table presents the estimated changes in the Company’s EVE at March 31, 2024, that would result from the indicated instantaneous changes in the United States Treasury yield curve and other relevant market interest rates.
TFS Financial Corporation
14 unchanged sentences
-300 1,453,273 75,127 5.45 % 8.64 % (14)
−Removed: The following table presents the estimated changes in the Association’s EVE at December 31, 2023, that would result from the indicated instantaneous changes in the United States Treasury yield curve and other relevant market interest rates.
+Added: The following table presents the estimated changes in the Association’s EVE at March 31, 2024, that would result from the indicated instantaneous changes in the United States Treasury yield curve and other relevant market interest rates.
Third Federal Savings and Loan Association
20 unchanged sentences
(4) EVE Ratio represents EVE divided by the present value of assets.
−Removed: The tables above indicate that at December 31, 2023, in the event of an increase of 200 basis points in all interest rates, the Company and Association would experience a 19.77% and 23.47% decrease in EVE, respectively.
+Added: The tables above indicate that at March 31, 2024, in the event of an increase of 200 basis points in all interest rates, the Company and Association would experience a 21.57% and 25.09% decrease in EVE, respectively.
In the event of a 100 basis point decrease in interest rates, the Company and Association would experience a 6.49% and 7.54% increase in EVE, respectively.
−Removed: The following tables are based on the calculations contained in the previous tables, and set forth the change in the EVE at a +200 basis point rate of shock at December 31, 2023, with comparative information as of September 30, 2023.
+Added: The following tables are based on the calculations contained in the previous tables, and set forth the change in the EVE at a +200 basis point rate of shock at March 31, 2024, with comparative information as of September 30, 2023.
By regulation, the Association must measure and manage its interest rate risk for interest rate shocks relative to established risk tolerances in EVE.
1 unchanged sentence
Risk Measure (+200 Basis Points Rate Shock)
−Removed: At December 31, 2023 At September 30, 2023
+Added: At March 31, 2024 At September 30, 2023
Pre-Shock EVE Ratio 8.78 % 8.21 %
3 unchanged sentences
Third Federal Savings and Loan Association
−Removed: Risk Measure (+200 Basis Points Rate Shock) At December 31, 2023 At September 30, 2023
+Added: Risk Measure (+200 Basis Points Rate Shock) At March 31, 2024 At September 30, 2023
Pre-Shock EVE Ratio 7.54 % 6.77 %
8 unchanged sentences
Accordingly, although the EVE tables provide an indication of our interest rate risk exposure as of the indicated dates, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our EVE and will differ from actual results.
−Removed: In addition to our core business activities, which seek to originate Smart Rate (adjustable) loans, home equity lines of credit (adjustable) and 10-year fixed-rate loans funded by borrowings from the FHLB and intermediate term CDs (including brokered CDs), and which are intended to have a favorable impact on our IRR profile, the impact of several other items and events resulted in the 11 and 24 basis point improvement in the Pre-Shock EVE Ratio (base valuation) measures at December 31, 2023, when compared to the measure at September 30, 2023, for the Company and Association, respectively.
+Added: In addition to our core business activities, which seek to originate Smart Rate (adjustable) loans, home equity lines of credit (adjustable) and 10-year fixed-rate loans funded by borrowings from the FHLB and intermediate term CDs (including brokered CDs), and which are intended to have a favorable impact on our IRR profile, the impact of several other items and events resulted in the 57 and 77 basis point improvement in the Pre-Shock EVE Ratio (base valuation) measures at March 31, 2024, when compared to the measure at September 30, 2023, for the Company and Association, respectively.
Factors contributing to these improvements included changes in market rates, capital actions by the Association and changes due to business activity.
9 unchanged sentences
Net interest income is the difference between the interest income that we earn on our interest-earning assets, such as loans and securities, and the interest that we pay on our interest-bearing liabilities, such as deposits and borrowings.
−Removed: In our model, we estimate what our net interest income would be for prospective 12 and 24 month periods using customized (based on our portfolio characteristics) assumptions with respect to loan prepayment rates, default rates and deposit decay rates, and the implied forward yield curve as of the market date for assumptions related to projected interest rates.
+Added: In our model, we estimate what our net interest income would be for prospective 12 and 24 month periods using customized (based on our portfolio characteristics) assumptions with respect to loan
+Added: prepayment rates, default rates and deposit decay rates, and the implied forward yield curve as of the market date for assumptions related to projected interest rates.
We then calculate what the estimated net interest income would be for the same period under numerous interest rate scenarios.
The simulation process is subject to continual enhancement, modification, refinement and adaptation.
−Removed: As of December 31, 2023, the estimated EaR for the 12 months ending December 31, 2024 would increase by 1.25% for the Company and 0.53% for the Association in the event that market interest rates used in the simulation were adjusted in incremental amounts (termed a "ramped" format) during the 12 month measurement period to an aggregate increase in 200 basis points.
+Added: As of March 31, 2024, the estimated EaR for the 12 months ending March 31, 2025, would decrease by 0.21% for the Company and 0.96% for the Association in the event that market interest rates used in the simulation were adjusted in incremental amounts (termed a "ramped" format) during the 12 month measurement period to an aggregate increase in 200 basis points.
The Company and Association use the "ramped" assumption in preparing the EaR simulation estimates for use in its public disclosures.
−Removed: The Company and Association continue to calculate instantaneous scenarios, and as of December 31, 2023, the estimated EaR for the 12 months ending December 31, 2024 would increase by 2.98% and 0.85%, respectively, in the event of an instantaneous 200 basis point increase in market interest rates.
+Added: The Company and Association continue to calculate instantaneous scenarios, and as of March 31, 2024, the estimated EaR for the 12 months ending March 31, 2025, would decrease by 0.48% and 2.12%, respectively, in the event of an instantaneous 200 basis point increase in market interest rates.
The manner in which actual yields, costs and consumer behavior respond to changes in market interest rates may vary from the inherent methodologies used to measure interest rate risk through EaR.
7 unchanged sentences
EVE is a stochastic model using 150 different interest rate paths to compute market value at the account level for each of the categories on the balance sheet, whereas EaR uses the implied forward curve to compute interest income/expense at the account level for each of the categories on the balance sheet.
−Removed: EVE is considered as a point in time calculation with a "liquidation" view of the Company and Association where all the cash flows (including interest, principal and prepayments) are modeled and discounted using discount factors derived from the
−Removed: current market yield curves.
+Added: EVE is considered as a point in time calculation with a "liquidation" view of the Company and Association where all the cash flows (including interest, principal and prepayments) are modeled and discounted using discount factors derived from the current market yield curves.
It provides a long term view and helps to define changes in equity and duration as a result of changes in interest rates.
5 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.