2 unchanged sentences
Interest rates are partly a function of decisions by the Federal Open Market Committee (FOMC) on the target range for the federal funds rate, and these decisions are sometimes difficult to anticipate.
−Removed: 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 a total of 525 basis points between 2022 and 2023.
+Added: The FOMC lowered the federal funds target rate three times in 2024 for a total of 100 basis points and increased the target rate four times in 2023 for a total of 100 basis points, and has suggested it may continue lowering interest rates in 2025.
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, 2023 interest-bearing liabilities that mature or reprice within one year exceeded interest-earning assets (interest-sensitive gap) by $29.4 million.
+Added: At December 31, 2024, interest-earning assets exceeded interest-bearing liabilities that mature or reprice within one year (interest-sensitive gap) by $470.7 million.
Our interest-sensitive assets as a percentage of interest-sensitive liabilities within the one-year window was 105.28% at December 31, 2024 compared with 99.67% at December 31, 2023.
4 unchanged sentences
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.
−Removed: 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.
+Added: The economic value of the equity ratio is defined as the net economic value of the estimated cash flows from assets and liabilities as a percentage of economic value of cash flows from total assets.
The following table shows the estimated impact of immediate changes in interest rates on our net interest margin and economic value of equity at the specified levels at December 31, 2024 and December 31, 2023.
22 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.