December 15, 2011 with early adoption permitted. Adoption of ASU 2011-05 did not have a significant impact on the  Company’s consolidated financial statements.  In September 2011, the FASB issued ASU No. 2011-08, Intangibles – Goodwill and Other (Topic 350): Testing  Goodwill for Impairment. ASU 2011-08 allows the use of qualitative factors to determine whether it is more likely than not  that the fair value of the reporting unit is less than its carrying amounts as a basis for determining whether it is necessary to  perform the two-step goodwill impairment test. The new guidance is effective for annual and interim goodwill impairment  tests beginning after December 15, 2011 with early adoption permitted. The adoption of ASU 2011-08 did not have a  significant impact on the Company’s consolidated financial statements.  Our assets and liabilities are principally financial in nature and the resulting net interest income thereon is subject  to changes in market interest rates and the mix of various assets and liabilities. Interest rates in the financial markets affect  our decision on pricing our assets and liabilities which impacts our net interest income, a significant cash flow source for us. As a result, a substantial portion of our risk management activities relates to managing interest rate risk.  Our Asset/Liability Management Committee monitors the interest rate sensitivity of our balance sheet using  earnings simulation models and interest sensitivity GAP analysis. We have set policy limits of interest rate risk to be  assumed in the normal course of business and monitor such limits through our simulation process.  In the past, we have been successful in meeting the interest rate sensitivity objectives set forth in our policy. Simulation models are prepared to determine the impact on net interest income for the coming twelve months, including  using rates at December 31, 2012 and forecasting volumes for the twelve-month projection. This position is then subjected  to a shift in interest rates of 100 and 200 basis points rising and 100 basis points falling with an impact to our net interest  income on a one-year horizon as follows:  Interest rate "gap" analysis is a common, though imperfect, measure of interest rate risk which measures the relative  dollar amounts of interest-earning assets and interest-bearing liabilities which reprice within a specific time period, either  through maturity or rate adjustment. The "gap" is the difference between the amounts of such assets and liabilities that are  subject to such repricing. A "positive" gap for a given period means that the amount of interest-earning assets maturing or  otherwise repricing within that period exceeds the amount of interest-bearing liabilities maturing or otherwise repricing during  that same period. In a rising interest rate environment, an institution with a positive gap would generally be expected, absent  the effects of other factors, to experience a greater increase in the yield of its assets relative to the cost of its liabilities. Conversely, the cost of funds for an institution with a positive gap would generally be expected to decline less quickly than the  yield on its assets in a falling interest rate environment. Changes in interest rates generally have the opposite effect on an  institution with a "negative" gap.  Following is our "static gap" schedule. One-to-four family and consumer loans include prepayment assumptions,  while all other loans assume no prepayments. Mortgage-backed securities include published prepayment assumptions, while  all other investments assume no prepayments. 59  ASSET/LIABILITY MANAGEMENT  ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  Scenario $000's change  in net interest  income % change in  net interest  income 200 basis point rising  $ 1,059  5.9% 100 basis point rising  $ 566  3.2% 100 basis point falling  $ (983) -5.5%