5 unchanged sentences
Additionally, our Board of Directors has authorized the formation of an Asset/Liability Management Committee comprised of key operating personnel, which is responsible for managing this risk in a matter that is consistent with the tolerance limits approved by the Board of Directors.
−Removed: Further, the Board has established the Directors Risk Committee, which, among other responsibilities, conducts regular oversight and review of the guidelines, policies and deliberations of the Asset/Liability Management Committee.
+Added: Further, the Board has established the Director's Risk Committee, which, among other responsibilities, conducts regular oversight and review of the guidelines, policies and deliberations of the Asset/Liability Management Committee.
We manage our interest rate risk in order to control the exposure of our earnings and capital to changes in interest rates.
1 unchanged sentence
Economic Value of Equity.
−Removed: Using customized modeling software, the Company and Association prepare periodic estimates of the amounts by which the net present value of cash flows from assets, liabilities and off-balance sheet items (the institution's EVE) would change in the event of a range of assumed changes in market interest rates.
+Added: Using customized modeling software, the Company and Association prepare periodic estimates of the amounts by which the net present value of cash flows from assets, liabilities and off-balance sheet items (the
+Added: institution's EVE) would change in the event of a range of assumed changes in market interest rates.
The simulation model uses a discounted cash flow analysis and an option-based pricing approach in measuring the interest rate sensitivity of EVE.
16 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.
+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 prepayment rates, default rates, and the implied forward yield curve as of the market date for assumptions related to projected
+Added: interest rates.
We then calculate what the estimated net interest income would be for the same period under numerous interest rate scenarios.
3 unchanged sentences
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 NII.
−Removed: In this regard, the interest rate risk information presented below assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the
−Removed: duration or repricing of specific assets and liabilities.
+Added: In this regard, the interest rate risk information presented below assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration or repricing of specific assets and liabilities.
Accordingly, although interest rate risk calculations provide an indication of our interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our net interest income and will differ from actual results.
6 unchanged sentences
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.
−Removed: It provides a long-term view and helps to define changes in equity and duration as a result of changes in interest rates.
−Removed: On the other hand, NII is based on flat balance sheet projections going one year and two years forward and assumes static volume and pricing to calculate net interest income under different interest rate environments.
+Added: It provides a long-term view and helps to define changes in equity and duration as a result of
+Added: changes in interest rates.
+Added: On the other hand, NII is based on static balance sheet projections going one year and two years forward and assumes pricing levels based on projected interest rate environments to calculate net interest income.
NII sensitivity is calculated to determine the sensitivity of net interest income under different interest rate scenarios.
2 unchanged sentences
In the event that there is a breach of policy limits that extends beyond two consecutive quarter-end measurement periods, management is responsible for taking such action, similar to those described under the preceding heading of General , as may be necessary in order to return the Association's interest rate risk profile to a position that is in compliance with the policy.
−Removed: The following table presents the estimated changes in the Company’s and Association's EVE and NII at June 30, 2025, that would result from the indicated 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 and Association's EVE and NII at December 31, 2025, that would result from the indicated changes in the United States Treasury yield curve and other relevant market interest rates.
TFS Financial Corporation
21 unchanged sentences
Estimated EVE assumes an instantaneous uniform change in interest rates at all maturities.
−Removed: (2) Estimated NII is calculated for the prospective 12 months ending September 30, 2025, in the event that market interest rates used in the simulation were adjusted instantaneously (termed a "shocked" format) during the 12 month measurement period to an aggregate increase as indicated in the Change in Interest Rates column.
−Removed: The tables above indicate that at June 30, 2025, in the event of an increase of 200 basis points in all interest rates, the Company and Association would experience a 25.68% and 28.93% decrease in EVE, respectively.
+Added: (2) Estimated NII is calculated for the prospective 12 months ending December 31, 2026, in the event that market interest rates used in the simulation were adjusted instantaneously (termed a "shocked" format) during the 12 month measurement period to an aggregate increase as indicated in the Change in Interest Rates column.
+Added: The tables above indicate that at December 31, 2025, in the event of an increase of 200 basis points in all interest rates, the Company and Association would experience a 19.98% and 22.76% decrease in EVE, respectively.
In the event of a 100 basis point decrease in interest rates, the Company and Association would experience an 6.68% and 7.61% 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 June 30, 2025, with comparative information as of September 30, 2024.
+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 December 31, 2025, with comparative information as of September 30, 2025.
By regulation, the Association must measure and manage its interest rate risk for interest rate shocks relative to established risk tolerances in EVE.
TFS Financial Corporation
−Removed: Risk Measure (+200 Basis Points Rate Shock) At June 30, 2025 At September 30, 2024
+Added: Risk Measure (+200 Basis Points Rate Shock) At December 31, 2025 At September 30, 2025
Pre-Shock EVE $ 1,598,624 $ 1,560,859
−Removed: $ 1,477,771 $ 1,313,560
Post-Shock EVE $ 1,279,286 $ 1,227,595
−Removed: $ 1,098,262 $ 1,001,779
Amount Change in EVE $ (319,338) $ (333,264)
−Removed: $ (379,509) $ (311,781)
Percentage Change in EVE (19.98) % (21.35) %
Third Federal Savings and Loan Association
−Removed: Risk Measure (+200 Basis Points Rate Shock) At June 30, 2025 At September 30, 2024
+Added: Risk Measure (+200 Basis Points Rate Shock) At December 31, 2025 At September 30, 2025
Pre-Shock EVE $ 1,401,909 $ 1,410,325
−Removed: $ 1,310,789 $ 1,143,608
Post-Shock EVE $ 1,082,795 $ 1,077,257
−Removed: $ 931,628 $ 832,140
Amount Change in EVE $ (319,114) $ (333,068)
−Removed: $ (379,161) $ (311,468)
Percentage Change in EVE (22.76) % (23.62) %
Accordingly, although the EVE presented in the tables above provides 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 an improvement in the Pre-Shock EVE (base valuation) of 12.50% and 14.62% at June 30, 2025, when compared to the measures at September 30, 2024, for the Company and Association, respectively.
−Removed: Factors contributing to the Association's improvement included decrease in market interest rates, capital actions by the Association, and changes due to business activity.
−Removed: While our core business activities, as described at the beginning of this paragraph, are generally intended to have a positive impact on our IRR profile, the actual impact is determined by a number of factors, including the pace of mortgage asset additions (reductions) to our balance sheet (including consideration of outstanding commitments to originate those assets), in comparison to the pace of the addition (reduction) of duration extending funding sources.
+Added: In addition to our core business activities, which seek to originate Smart Rate (adjustable) loans, home equity lines of credit (adjustable) and fixed-rate loans funded by retail deposits and borrowings from the FHLB, and which the collective activity is intended to have a favorable impact on our IRR profile, the impact of several other items and events resulted in an improvement of upside +200 shock valuation sensitivity of 1.38% and 0.85% at December 31, 2025, when compared to the measures at September 30, 2025, for the Company and Association, respectively.
+Added: Factors contributing to the improvement included decrease in market interest rates, capital actions by the Association, and changes due to business activity.
+Added: While our core business activities, as described at the beginning of this paragraph, are generally intended to have a positive impact on our IRR profile, the actual impact is determined by a number of factors, including the pace of mortgage asset additions (reductions) to our balance sheet (including consideration of outstanding commitments to originate those assets), in comparison to the pace of the addition (reduction) of longer duration funding sources.
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.