3 unchanged sentences
In response to the economic and financial effects of COVID-19, the FOMC reduced interest rates through 2020 and 2021 and instituted quantitative easing measures as well as domestic and global capital market support programs.
−Removed: The FOMC raised the federal funds target rate seven times in 2022 for a total of 425 basis points and 25 basis points in February 2023, and has suggested it may continue raising interest rates further in 2023.
+Added: The FOMC raised the federal funds target rate a total of 525 basis points between 2022 and 2023.
In order to manage the risks associated with changes or possible changes in interest rates, we rely primarily on our asset/liability structure.
1 unchanged sentence
We regularly review our interest rate sensitivity and adjust the sensitivity within acceptable tolerance ranges.
−Removed: At December 31, 2022 interest-earning assets exceeded interest-bearing liabilities that mature or reprice within one year (interest-sensitive gap) by $1.3 billion.
+Added: At December 31, 2023 interest-bearing liabilities that mature or reprice within one year exceeded interest-earning assets (interest-sensitive gap) by $29.4 million.
Our interest-sensitive assets as a percentage of interest-sensitive liabilities within the one-year window was 99.67% at December 31, 2023 compared with 116.93% at December 31, 2022.
3 unchanged sentences
To that end, we actively monitor and manage our interest rate risk exposure.
−Removed: One measure, which we are required to perform by federal
−Removed: regulation, measures the impact of an immediate change in interest rates in 100 basis point increments on the economic value of equity ratio.
+Added: One measure, which we are required to perform by federal regulation, measures the impact of an immediate change in interest rates in 100 basis point increments on the economic value of equity ratio.
The economic value of the equity ratio is defined as the economic value of the estimated cash flows from assets and liabilities as a percentage of economic value of cash flows from total assets.
15 unchanged sentences
(100) (4.9)% 18.00% (6.8)% 22.20%
−Removed: (14.0)% 20.20% NMF NMF
−Removed: (21.2)% 17.90% NMF NMF
+Added: (200) (9.6)% 16.50% (14.0)% 20.20%
+Added: (300) (14.2)% 14.80% (21.2)% 17.90%
(1) The percentage difference between net interest income in a stable interest rate environment and net interest margin as projected under the various rate change environments.
(2) The economic value of equity ratio in a stable interest rate environment and the economic value of equity projected under the various rate change environments.
−Removed: (3) At December 31, 2021, sensitivity indicated by a decrease of 200 and 300 basis points is deemed not meaningful (NMF) given the low absolute level of interest rates at that time.
We also engage in other business activities that are sensitive to changes in interest rates.
2 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.