8 unchanged sentences
To measure that risk, the Company uses an earnings simulation approach.
−Removed: The Company has an Asset Liability Committee which meets quarterly, or more often when deemed necessary, to review the interest rate sensitivity position and to review and develop various strategies for managing interest rate risk.
+Added: The Company has an Asset Liability Committee which meets quarterly, or more often when deemed necessary, to review the interest rate sensitivity position and develop various strategies for managing interest rate risk.
Measuring and maintaining interest rate risk is a dynamic process that management performs with the objective of maximizing net interest margin while maintaining interest rate risk within acceptable tolerances.
4 unchanged sentences
The modeled scenarios begin with a base case in which rates are unchanged and can include parallel and nonparallel rate shocks.
−Removed: The results of these shocks are measured in two forms:
+Added: The model includes deposit beta assumptions which are estimates of changes in interest-bearing deposit pricing for a given change in market interest rates.
+Added: The results of the rate shocks are measured in two forms:
first, the impact on the net interest margin and earnings over one and two year time frames;
1 unchanged sentence
The results of the simulation are compared against approved policy limits.
−Removed: The following table presents the estimated change in net interest income for one year under several scenarios of assumed interest rate changes for the rate shock levels shown.
+Added: The following table presents the estimated change in net interest income over a one year time horizon under several scenarios of assumed interest rate changes for the rate shock levels shown.
The change in each interest rate scenario represents the difference between estimated net interest income in the unchanged interest rate scenario, or the base case, and the estimated net interest income in each of the alternative interest rate scenarios.
The net interest income in each scenario is based on immediate parallel yield curve changes in the interest rates applied to a static balance sheet.
−Removed: These do not reflect the earnings expectations of management.
−Removed: Net Interest Income at
−Removed: December 31, 2023
+Added: This analysis does not represent a forecast and should not be relied upon as being indicative of expected operating results.
+Added: At December 31, 2024
+Added: Sensitivity of Net Interest Income Over One Year Horizon
Change in Interest Rates $ Change % Change
4 unchanged sentences
200 basis points falling 3,333 3.49
+Added: 300 basis points falling 4,075 4.27
Computations of the prospective effects of hypothetical interest rate changes are based on numerous assumptions.
The assumptions used in our interest rate sensitivity simulation discussed above are inherently uncertain and, as a result, the simulations cannot precisely measure net interest income or precisely predict the impact of changes in interest rates on net interest income.
−Removed: Actual results may differ from those projections set forth above due to timing, magnitude and frequency of interest rate changes as well as changes in market conditions and customer behavior.
+Added: Actual results may differ from the computations set forth above due to timing, magnitude and frequency of interest rate changes as well as changes in market conditions and customer behavior.
Further, the computations do not contemplate any actions the Company may undertake in response 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.