total liabilities – Free Bassuk http://freebassuk.com/ Mon, 14 Mar 2022 17:02:04 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://freebassuk.com/wp-content/uploads/2021/07/icon.png total liabilities – Free Bassuk http://freebassuk.com/ 32 32 IX vs. BX: Which Stock Should Value Investors Buy Now? https://freebassuk.com/ix-vs-bx-which-stock-should-value-investors-buy-now/ Mon, 14 Mar 2022 17:02:04 +0000 https://freebassuk.com/ix-vs-bx-which-stock-should-value-investors-buy-now/ IInvestors looking for stocks in the financial services – miscellaneous services sector might consider Orix (IX) or Blackstone Inc. (BX). But which of these two stocks offers investors the best value opportunity right now? Let’s take a closer look. Everyone has their own methods for finding high-value opportunities, but our model includes pairing an impressive […]]]>

IInvestors looking for stocks in the financial services – miscellaneous services sector might consider Orix (IX) or Blackstone Inc. (BX). But which of these two stocks offers investors the best value opportunity right now? Let’s take a closer look.

Everyone has their own methods for finding high-value opportunities, but our model includes pairing an impressive score in the Value category of our Style Scores system with a strong Zacks ranking. The proven Zacks ranking emphasizes companies with positive estimate revision trends, and our style scores highlight stocks with specific characteristics.

Currently, Orix sports a Zacks rank of #2 (Buy), while Blackstone Inc. has a Zacks rank of #3 (Hold). Investors should feel comfortable knowing that IX has likely seen a stronger improvement in its earnings outlook than BX recently. However, value investors will care about much more than that.

Value investors analyze a variety of traditional and time-tested metrics to help find companies they believe are undervalued at their current stock price level.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company’s fair value.

IX currently has a forward P/E ratio of 8.32, while BX has a forward P/E of 21.30. We also note that IX has a PEG ratio of 0.33. This measure is used in the same way as the famous P/E ratio, but the PEG ratio also takes into account the growth rate of the stock’s expected earnings. BX currently has a PEG ratio of 0.89.

Another notable valuation metric for IX is its P/E ratio of 0.78. Investors use the P/E ratio to compare a stock’s market value to its book value, which is defined as total assets minus total liabilities. In comparison, BX has a P/B of 3.68.

These measures, and several others, help IX earn an A value rating, while BX received a C value rating.

IX ranks above BX thanks to its strong earnings outlook, and based on these valuation numbers, we also believe that IX is the superior value option at this time.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Sanlorenzo (BIT:SL) appears to be using debt sparingly https://freebassuk.com/sanlorenzo-bitsl-appears-to-be-using-debt-sparingly/ Sat, 05 Mar 2022 07:34:12 +0000 https://freebassuk.com/sanlorenzo-bitsl-appears-to-be-using-debt-sparingly/ Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. […]]]>

Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. We note that Sanlorenzo Spa (BIT:SL) has debt on its balance sheet. But should shareholders worry about its use of debt?

When is debt dangerous?

Debt and other liabilities become risky for a business when it cannot easily meet those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more common (but still painful) scenario is that it has to raise new equity at a low price, thereby permanently diluting shareholders. Of course, debt can be an important tool in businesses, especially capital-intensive businesses. The first thing to do when considering how much debt a business has is to look at its cash and debt together.

See our latest analysis for Sanlorenzo

What is Sanlorenzo’s debt?

You can click on the chart below for historical figures, but it shows Sanlorenzo had €100.9m in debt in September 2021, up from €106.6m a year earlier. However, he has €139.1m in cash which offsets this, leading to a net cash of €38.3m.

BIT:SL Debt to Equity March 5, 2022

How strong is Sanlorenzo’s balance sheet?

According to the last published balance sheet, Sanlorenzo had liabilities of €265.5 million maturing within 12 months and liabilities of €76.3 million maturing beyond 12 months. In return for these obligations, it had cash of €139.1 million as well as receivables worth €125.6 million at less than 12 months. Thus, its liabilities outweigh the sum of its cash and (short-term) receivables by €77.1 million.

Given that Sanlorenzo has a market capitalization of €1.11 billion, it’s hard to believe that these liabilities pose a big threat. But there are enough liabilities that we certainly recommend that shareholders continue to monitor the balance sheet in the future. Despite its notable liabilities, Sanlorenzo has a net cash position, so it’s fair to say that it’s not heavily leveraged!

On top of that, we are pleased to report that Sanlorenzo increased its EBIT by 76%, reducing the specter of future debt repayments. The balance sheet is clearly the area to focus on when analyzing debt. But ultimately, the company’s future profitability will decide whether Sanlorenzo can strengthen its balance sheet over time. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

Finally, a business needs free cash flow to pay off its debts; book profits are not enough. Sanlorenzo may have net cash on the balance sheet, but it’s always interesting to see how well the company converts its earnings before interest and taxes (EBIT) into free cash flow, as this will influence both its need and its ability to manage debt. Over the past three years, Sanlorenzo has recorded a free cash flow of 47% of its EBIT, which is lower than expected. It’s not great when it comes to paying off debt.

Abstract

While it is always a good idea to look at a company’s total liabilities, it is very reassuring that Sanlorenzo has 38.3 million euros in net cash. And we liked the look of EBIT growth of 76% YoY last year. So is Sanlorenzo’s debt a risk? This does not seem to us to be the case. There is no doubt that we learn the most about debt from the balance sheet. However, not all investment risks reside on the balance sheet, far from it. Example: we have identified 2 warning signs for Sanlorenzo you should be aware.

If, after all that, you’re more interested in a fast-growing company with a strong balance sheet, check out our list of cash-neutral growth stocks right away.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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I View Splunk as a Business, Not an Investment: Here’s Why https://freebassuk.com/i-view-splunk-as-a-business-not-an-investment-heres-why/ Thu, 03 Mar 2022 15:30:00 +0000 https://freebassuk.com/i-view-splunk-as-a-business-not-an-investment-heres-why/ One of the former “Cloud Kings” who had fallen on hard times lately, Splunk (SPLK) hosted a big “news” night on Wednesday night, less than a month after the Wall Street Journal reported that Cisco Systems (CSCO) had made a run at the company, but the subject was no longer under discussion. The company reported […]]]>

One of the former “Cloud Kings” who had fallen on hard times lately, Splunk (SPLK) hosted a big “news” night on Wednesday night, less than a month after the Wall Street Journal reported that Cisco Systems (CSCO) had made a run at the company, but the subject was no longer under discussion. The company reported better-than-expected financial performance in the fourth quarter and finally named a new CEO. The company had spent months with board chairman Graham Smith as interim CEO as the search continued toward a conclusion.

For the fourth quarter, Splunk posted GAAP EPS of a loss of $0.88 per share, better than expected as it includes or rather does not adjust for stock-based compensation, amortization of intangible assets, restructuring charges or non-cash interest expense related to convertible senior notes. On an adjusted basis, the firm posted EPS of $0.67, which crushed it. Splunk also generated $901.119 million in revenue, easily beating Wall Street (by over $100 million) and enough for 20.9% annual growth.

A new boss

Splunk also announced that Gary Steele has been named the company’s new chief executive officer and member of the board of directors, effective April 11. Steele has over 30 years of experience and experience scaling SaaS operations, while building multi-billion dollar businesses. Steel was the founding CEO of Proofpoint, growing that company from start-up to publicly traded SaaS provider for some major large-cap clients. Prior to that, Steele served as CEO of Portera and held leadership positions at Sybase, Sun Microsystems and Hewlett-Packard (HPE).

Commenting on the hire, Graham Smith said, “Gary is a visionary leader whose expertise in software and cybersecurity, his deep understanding of SaaS and recurring revenue models, and his unwavering commitment to driving innovation and customer success globally will be invaluable to Splunk on our journey. to $5 billion (in annual revenue) and beyond.” In response, Steele said… “Splunk has incredible talent and an innovative, customer-centric philosophy. I can’t wait to get started and earn the right to call myself Splunker.” Smith will return to his sole role as chairman as soon as Steele joins the company.

Beyond the headlines

For the quarter, Cloud ARR (annual recurring revenue) grew 65% to $1.34 billion. Total ARR increased by 32% to $3.12 billion. Cloud revenue grew 69% to $289 million. The total number of customers generating a cloud ARR greater than $1 million increased by 70% to 317. The total number of customers generating a total ARR greater than $1 million increased by 32% to 675.

For the full year, cloud revenue grew 70% to $944 million. Total revenue generated increased by 20% to $2.67 billion. Operating cash flow printed at $128 million, producing $117 million of free cash flow.

During the quarter, Splunk joined the US Cybersecurity and Infrastructure Security Agency’s Joint Cyber ​​Security Collaborative and won the Naval Information Warfare Systems Command Award.

Advice

For the current quarter, Splunk is forecasting revenue of $615 million to $635 million, bringing the low end above the $609 million Wall Street was seeking. The adjusted operating margin should be between -20% and -25%.

For the full year, Cloud ARR is estimated to be a minimum of $2 billion, with a total ARR of approximately $3.9 billion. Total revenue is projected between $3.25 billion and $3.3 billion, versus a consensus of just over $3 billion. The adjusted operating margin for the full year should be between 0% and +2%. Cash flow from operations is expected to reach or exceed $400 million.

Balance sheet

Over the past 12 months, the company’s net cash position has declined, not by much, to $1.714 billion. This reduction is more than offset by an increase in accounts receivable, bringing current assets slightly to $3.276 billion. Current liabilities are $2.098 billion, which is up quite significantly, due to the growth in deferred revenue. At a current ratio of 1.56, I don’t see a brewing problem in Splunk to meet all short to medium term obligations. Total assets of $5.79 billion, which is down, still outweighs total liabilities less equity of $5.568 billion. This total liability less equity count was up 30% from a year ago, driven by growth in net convertible senior notes. I know this is common practice on Wall Street. You know that kind of non-routine action on the balance sheet, even if it won’t matter today or even this year, makes me uncomfortable.

Wall Street

By my count, six sell-side analysts rated five stars by TipRanks have given their opinion on Splunk since the quarterly earnings release and new CEO announcement. We have three “buy” or “equivalent buy” ratings and three “hold” or “equivalent hold” ratings. The average target price of the six is ​​equal to $147. The highest target among these six is ​​$175 (Matthew Hedberg of RBC Capital), while the lowest target is $130 (Gregg Moskowitz of Mizuho Securities).

Table

At first glance, there is something to like about this painting. The stock is anything but technically overbought. It would seem that if the stock can take and then hold the 50-day SMA at $117.52 and the 21-day EMA at $118.35, then a serious run can be made to the 200-day SMA ($134.81 ) and at the 38.2% Fibonacci retracement level ($132.65). ) of the massive sale from November to December. By the time SPLK gets there, these two resistance levels might be about to merge into one.

My problem with this chart is the action experienced since December. Let me show you what I mean…

Do you see the foundation of a base pattern that has formed a flat base? Not really, no ? Do you see a “rising wedge”? I think I can. A rising wedge for new kids is a bearish pattern even though the underlying security increases as the pattern builds. The explosive move most often when you see a wedge going up or down is in the opposite direction.

My thought

For two reasons… the possible rising wedge above and the lack of an attractive long-term balance sheet (in my opinion), I would consider SPLK a trader, not an investment, at least not as long as we haven’t seen new CEO Gary Steele in action. It’s not that I don’t think Splunk can pull it off, it’s just that they’re going to have to show me that they can.

(CSCO is a holding company of Member Club Action Alerts PLUS. Want to be alerted before AAP buys or sells this stock? Learn more now.)

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Falling deficit: faster growth to give States greater fiscal room for maneuver https://freebassuk.com/falling-deficit-faster-growth-to-give-states-greater-fiscal-room-for-maneuver/ Sat, 26 Feb 2022 16:19:15 +0000 https://freebassuk.com/falling-deficit-faster-growth-to-give-states-greater-fiscal-room-for-maneuver/ By Rohit Vaid New Delhi, February 26 (IANS): Economic growth along with higher tax revenues should give state governments more room to maneuver in FY23. Furthermore, it is estimated that despite Covid-19 and populist regimes, the outlook for Indian state finances is expected to improve in FY23. Notably, increased financial assistance provided […]]]>

By Rohit Vaid

New Delhi, February 26 (IANS): Economic growth along with higher tax revenues should give state governments more room to maneuver in FY23.

Furthermore, it is estimated that despite Covid-19 and populist regimes, the outlook for Indian state finances is expected to improve in FY23.

Notably, increased financial assistance provided by the Center should make up for any shortfall during the ongoing pandemic phase.

In the FY23 budget, the Center allocated financial assistance of Rs 1 trillion in the form of interest free loans over 50 years.

In addition, the Center has allocated a higher amount of Rs 7.45 trillion as the states share central taxes in FY22RE.

However, the situation remains critical with the wave of Omicron which slows down the dynamics of growth.

According to a study of budgets by the Reserve Bank of India, the total liabilities of all state governments increased by 14.6% to Rs 60.2 trillion in the Revised Estimates (RE) for FY 2021, compared to 52.5 trillion rupees for the financial year 2020.

“Subsequently, liabilities increased by 13% to Rs 68 trillion in the fiscal year 2022 (BE) budget forecast,” said Aditi Nayar, Chief Economist, ICRA.

“As a proportion of GSDP, total liabilities deteriorated from 25.8% in fiscal year 2020 to nearly 30% each in fiscal year 2021 RE and fiscal year 2022 BE. “

Regarding the high debt levels due to Covid-19 and populist agendas, Mr. Govinda Rao, Chief Economic Advisor, Brickwork Ratings, said that the level of debt in India is high compared to the level of development of the country. .

“However, on the whole, states have adhered to the FRBM borrowing target of 3% of GDP. So populism has not had much of an impact to the extent that even when some announcements are made, they are diluted when implemented,” Rao said.

“Overall, state indebtedness is around 20% of GDP and that is the target set by the 15th Finance Committee for 2025-26.”

Furthermore, he said the center’s debt needs to be cut sharply from the current 63% of GDP to around 40%, which is a tall order.

According to India Ratings and Research, due to Covid-induced pressure on income and expenditure, the budget deficit was higher and hence increased the debt burden in FY21.

“Things are improving in FY22,” said Anuradha Basumatari, associate director, India Ratings and Research.

“Populist regimes exist and are not necessarily a key reason for the increased debt burden. The increase in debt in FY21 is largely due to the impact of Covid on growth and revenue, while also forcing states to incur expenditures for COVID containment and control.”

In addition, the agency expects the overall state budget deficit for FY23 to be 3.6% of gross domestic product (GDP) compared to 3.5% (revised) for FY23. 22 (forecast).

He previously gave a forecast for FY22 at 4.1%.

The revision was made due to better-than-expected tax revenue growth and higher nominal GDP growth in FY22.

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UMB FINANCIAL CORP MANAGEMENT REPORT OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-K) https://freebassuk.com/umb-financial-corp-management-report-of-financial-position-and-results-of-operations-form-10-k/ Thu, 24 Feb 2022 16:20:04 +0000 https://freebassuk.com/umb-financial-corp-management-report-of-financial-position-and-results-of-operations-form-10-k/ Management discussion and analysis This Management's Discussion and Analysis highlights the material changes in the results of operations and changes in financial condition for each of the three years in the period ended December 31, 2021. It should be read in conjunction with the accompanying Consolidated Financial Statements, Notes to Consolidated Financial Statements, and other […]]]>

Management discussion and analysis


This Management's Discussion and Analysis highlights the material changes in the
results of operations and changes in financial condition for each of the three
years in the period ended December 31, 2021. It should be read in conjunction
with the accompanying Consolidated Financial Statements, Notes to Consolidated
Financial Statements, and other financial statistics appearing elsewhere in this
Annual Report on Form 10-K. Results of operations for the periods included in
this review are not necessarily indicative of results to be attained during any
future period.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS


From time to time the Company has made, and in the future will make,
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements can be identified by the fact
that they do not relate strictly to historical or current facts. Forward-looking
statements often use words such as "believe," "expect," "anticipate," "intend,"
"estimate," "project," "outlook," "forecast," "target," "trend," "plan," "goal,"
or other words of comparable meaning or future-tense or conditional verbs such
as "may," "will," "should," "would," or "could." Forward-looking statements
convey the Company's expectations, intentions, or forecasts about future events,
circumstances, results, or aspirations.

This report, including any information incorporated by reference in this report,
contains forward-looking statements. The Company also may make forward-looking
statements in other documents that are filed or furnished with the SEC. In
addition, the Company may make forward-looking statements orally or in writing
to investors, analysts, members of the media, or others.

All forward-looking statements, by their nature, are subject to assumptions,
risks, and uncertainties, which may change over time and many of which are
beyond the Company's control. You should not rely on any forward-looking
statement as a prediction or guarantee about the future. Actual future
objectives, strategies, plans, prospects, performance, conditions, or results
may differ materially from those set forth in any forward-looking statement.
While no list of assumptions, risks, or uncertainties could be complete, some of
the factors that may cause actual results or other future events, circumstances,
or aspirations to differ from those in forward-looking statements include:
     •    local, regional, national, or international business, economic, or
          political conditions or events;

• changes in laws or the regulatory environment, including as a result of

financial services laws or regulations;

• changes in monetary, tax or trade laws or policies, including as a

          result of actions by central banks or supranational authorities;


  • changes in accounting standards or policies;

• changes in investor sentiment or behavior towards the securities, capital or

          other financial markets, including changes in market liquidity or
          volatility or changes in interest or currency rates;

• changes in corporate or household spending, borrowing or saving;

• the Company’s ability to effectively manage its capital or liquidity or to

effectively attracting or deploying deposits;

• changes to any credit rating assigned to the Company or its affiliates;



  • adverse publicity or other reputational harm to the Company;


     •    changes in the Company's corporate strategies, the composition of its
          assets, or the way in which it funds those assets;


     •    the Company's ability to develop, maintain, or market products or

services or to absorb unforeseen costs or liabilities associated with

such products or services;

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• the Company’s ability to innovate to anticipate the needs of current markets or

future customers, to compete successfully in their chosen professions,

increase or maintain market share in changing competitive environments,

or to address price or other competitive pressures;

• changes in the credit, liquidity or any other condition of the assets of the Company

customers, counterparties or competitors;

• the Company’s ability to deal effectively with economic, commercial or

market slowdowns or disruptions;

• investigations, legal, regulatory or administrative proceedings,

          disputes, or rulings that create uncertainty for, or are adverse to, the
          Company or the financial-services industry;

• the Company’s ability to cope with the evolution or strengthening of regulations or

other governmental oversight or requirements;

• the Company’s ability to maintain secure and functional finances,

accounting, technology, data processing or other operating systems or

its facilities, including its ability to withstand cyberattacks;

• the adequacy of corporate governance, risk management

          framework, compliance programs, or internal controls, including its
          ability to control lapses or deficiencies in financial reporting or to
          effectively mitigate or manage operational risk;


     •    the efficacy of the Company's methods or models in assessing business
          strategies or opportunities or in valuing, measuring, monitoring, or
          managing positions or risk;


     •    the Company's ability to keep pace with changes in technology that

affect the Company or its customers, counterparties or competitors;


     •    mergers, acquisitions, or dispositions, including the Company's ability
          to integrate acquisitions and divest assets;

• the adequacy of the Company’s succession plan for the main executives or

other staff;

• the Company’s ability to increase its revenues, control its expenses or attract and

          retain qualified employees;


     •    natural disasters, war, terrorist activities, pandemics, or the outbreak
          of COVID-19 or similar outbreaks, and their effects on economic and
          business environment in which the Company operates;

• adverse effects due to COVID-19 on the Company and its customers,

          counterparties, employees, and third-party service providers, and the
          adverse impacts to its business, financial position, results of
          operations, and prospects; or

• other assumptions, risks or uncertainties described in the Risk Factors

(Item 1A), Management report and analysis of the financial situation

and results of operations (heading 7), or the notes to the consolidated statements

          Financial Statements (Item 8) in this Annual Report on Form 10-K or
          described in any of the Company's annual, quarterly or current reports.


Any forward-looking statement made by the Company or on its behalf speaks only
as of the date that it was made. The Company does not undertake to update any
forward-looking statement to reflect the impact of events, circumstances, or
results that arise after the date that the statement was made, except as
required by applicable securities laws. You, however, should consult further
disclosures (including disclosures of a forward-looking nature) that the Company
may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form
10-Q, or Current Report on Form 8-K.

Operating results

Overview


During the first quarter of 2020, the global economy began experiencing a
downturn related to the impacts of the COVID-19 global pandemic (the COVID-19
pandemic, or the pandemic). Such impacts have included significant volatility in
the global stock and fixed income markets, a 150-basis-point reduction in the
target federal funds rate, the enactment of the Coronavirus Aid, Relief, and
Economic Security (CARES) Act and the American Rescue Plan Act of 2021, both
authorizing the Paycheck Protection Program (PPP) administered by the Small
Business Administration, and a variety of rulings from the Company's banking
regulators.


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The Company continues to actively monitor developments related to COVID-19 and
its impact to its business, customers, employees, counterparties, vendors, and
service providers. During the year ended December 31, 2021, the Company's
results of operations included continued maintenance of the allowance for credit
losses (ACL) at a level appropriate given the state of key macroeconomic
variables utilized in the econometric models at December 31, 2021. Additionally,
the Company continued to see impacts of the volatile equity and debt markets and
low interest rate environment in its fee-based businesses.

In response to the COVID-19 pandemic, the Company formed a Pandemic Taskforce
and a steering group comprised of associates across multiple lines of business
and support functions and has taken several actions to offer various forms of
support to its customers, employees, and communities that have experienced
impacts resulting from the COVID-19 pandemic. The Company has also increased
purchases of computer hardware to support a remote workforce, as well as
incurred additional cleaning and janitorial expense to disinfect branch and
office locations. The Company has actively worked with customers impacted by the
economic downturn by offering payment deferrals and other loan
modifications. See further details under "Credit Risk Management" within "Item
7A. Quantitative and Qualitative Disclosures about Market Risk."

The COVID-19 pandemic and stay-at-home and similar mandates have also
necessitated certain actions related to the way the Company operates its
business. The Company transitioned most of its workforce off-site or to
work-from-home to help mitigate health risks and is currently moving forward
with plans to bring associates back in the office in a phased approach during
the first half of 2022. The Company is also carefully monitoring the activities
of its vendors and other third-party service providers to mitigate the risks
associated with any potential service disruptions.

The Company has detailed the impact of the COVID-19 pandemic in each applicable section of the “MD&A and Analysis of Financial Condition and Results of Operations” below.


The Company focuses on the following four core financial objectives. Management
believes these objectives will guide its efforts to achieve its vision, to
deliver the Unparalleled Customer Experience, all while seeking to improve net
income and strengthen the balance sheet while undertaking prudent risk
management.

The first financial objective is to continuously improve operating efficiencies.
The Company has focused on identifying efficiencies that simplify its
organizational and reporting structures, streamline back office functions and
take advantage of synergies and newer technologies among various platforms and
distribution networks. The Company has identified and expects to continue
identifying ongoing efficiencies through the normal course of business that,
when combined with increased revenue, will contribute to improved operating
leverage. For 2021, total revenue decreased 0.7%, and noninterest expense
increased 1.4%, as compared to the previous year. Revenue for 2020 included a
gain on the Company's investment in Tattooed Chef, Inc. (TTCF) of $108.8
million. Revenue for 2021 included a loss of $15.4 million on TTCF. The Company
continues to invest in technological advances that it believes will help
management drive operating leverage in the future through improved data analysis
and automation. The Company also continues to evaluate core systems and will
invest in enhancements that it believes will yield operating efficiencies.

The second financial objective is to increase net interest income through
profitable loan and deposit growth and the optimization of the balance
sheet. For 2021, net interest income increased $84.3 million, or 11.5%, as
compared to the previous year. The Company has shown increased net interest
income through the effects of increased volume, the mix of average earning
assets, and PPP income. Loans recorded under the PPP increased loan interest
income by $12.4 million in 2021 as compared to 2020. The additional increase in
interest income was driven by increased loan and securities balances and
liquidity. These increases were offset by a lower rate environment. Average
earning assets increased $6.7 billion, or 24.7%, compared to 2020. Average loan
balances increased $1.5 billion, average securities increased $2.2 billion, and
average interest-bearing due from banks increased $2.8 billion from prior year.
Average PPP loans decreased $229.0 million. The funding for these assets was
driven primarily by a 17.5% increase in average interest-bearing liabilities and
43.5% increase in noninterest-bearing deposits. Net interest margin, on a
tax-equivalent basis, decreased 31 basis points compared to the same period in
2020.

The third financial objective is to grow the Company's revenue from noninterest
sources. The Company seeks to grow noninterest revenues throughout all economic
and interest rate cycles, while positioning itself to benefit in periods of
economic growth. Noninterest income decreased $93.0 million, or 16.6%, to $467.2
million for the year ended December 31, 2021, compared to the same period in
2020. This decrease was primarily driven by the $108.8

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million gain on the Company's investment in TTCF in 2020, coupled with a loss on
TTCF of $15.4 million in 2021. The decreased revenue attributed to TTCF is
offset by increased fund services income and corporate trust income. These
changes are discussed in greater detail below under Noninterest income. As of
December 31, 2021, noninterest income represented 36.4% of total revenues, as
compared to 43.4% for 2020.

The fourth financial objective is effective capital management. The Company
places a significant emphasis on maintaining a strong capital position, which
management believes promotes investor confidence, provides access to funding
sources under favorable terms, and enhances the Company's ability to capitalize
on business growth and acquisition opportunities. The Company continues to
maximize shareholder value through a mix of reinvesting in organic growth,
evaluating acquisition opportunities that complement the Company's strategies,
increasing dividends over time, and appropriately utilizing a share repurchase
program. At December 31, 2021, the Company had a total risk-based capital ratio
of 13.88% and $3.1 billion in total shareholders' equity, an increase of $128.5
million, or 4.3%, compared to total shareholders' equity at December 31, 2020.
The Company repurchased 68 thousand shares of common stock at an average price
of $81.36 per share during 2021 and declared $67.3 million in dividends, which
represents a 10.9% increase compared to dividends declared during 2020.

Earnings Summary


The Company recorded consolidated net income of $353.0 million for the year
ended December 31, 2021. This represents a 23.2% increase over 2020. Net income
for 2020 was $286.5 million, or an increase of 17.6% compared to 2019. Basic
earnings per share for the year ended December 31, 2021, were $7.31 per share
compared to $5.95 per share in 2020, an increase of 22.9%. Basic earnings per
share were $4.99 per share in 2019, or an increase of 19.2% from 2019 to 2020.
Fully diluted earnings per share increased 22.1% from 2020 to 2021 and increased
19.6% from 2019 to 2020. Return on average assets and return on average common
shareholder's equity for the year ended December 31, 2021 were 1.00% and 11.43%,
respectively, compared to 1.00% and 10.21%, respectively, for the year ended
December 31, 2020. Return on average assets and return on average common
shareholder's equity for the year ended December 31, 2019 were 1.02% and 9.94%,
respectively.

The Company's net interest income increased to $815.5 million in 2021 compared
to $731.2 million in 2020 and $670.9 million in 2019. In total, net interest
income increased $84.3 million, as compared to 2020, primarily driven by a
favorable volume variance of $85.0 million. See Table 2. The favorable volume
variance on earning assets was predominantly driven by an increase of $6.7
billion in average earning assets, or 24.7%. Average interest-bearing due from
banks increased $2.8 billion, average securities balances increased $2.2
billion, and average loan balances increased $1.5 billion for 2021 compared to
the same period in 2020. Net interest margin, on a fully tax-equivalent basis
(FTE), decreased to 2.50% for 2021, compared to 2.81% for the same period in
2020, as the asset yields and the cost of interest-bearing liabilities
decreased, coupled with an increased balance sheet. This created significant
margin compression. The Company has seen a decrease in the benefit from
interest-free funds as compared to 2020 driven by the lower rate
environment. The impact of this benefit decreased seven basis points compared to
2020 and is illustrated on Table 3. The magnitude and duration of this impact
will be largely dependent upon the FRB's policy decisions and market movements.
See Table 18 in Item 7A for an illustration of the impact of an interest rate
increase or decrease on net interest income as of December 31, 2021.

The provision for credit losses totaled $20.0 million for the year ended
December 31, 2021, which is a decrease of $110.5 million, or 84.7%, compared to
the same period in 2020. This change is the result of the adoption of the CECL
standard in 2020 and applying this methodology for computing the allowance for
credit losses, coupled with the impacts of the current and forecasted economic
environment related to the COVID-19 pandemic. See further discussion in
"Provision and Allowance for Credit Losses" in this report.

The Company had a decrease of $93.0 million, or 16.6%, in noninterest income in
2021, as compared to 2020, and an increase of $133.4 million, or 31.3%, in 2020,
compared to 2019. The decrease in 2021 and increase in 2020 is primarily
attributable to a decrease of $115.6 million and an increase of $118.4 million
in Investment securities gains, net. This is primarily driven by the $108.8
million gain on the Company's investment in TTCF in 2020 and a loss of $15.4
million in 2021. The decrease in 2021 is also impacted by increased fund
services income, corporate trust, and bankcard income. These are offset by a
decrease in brokerage income. The change in noninterest income in 2021 from
2020, and 2020 from 2019 is illustrated in Table 6.

Non-interest expense increased in 2021 by $11.6 millioni.e. 1.4%, compared to 2020 and increased by $43.1 millionor 5.5%, in 2020 compared to 2019. The increase in 2021 is mainly attributable to the increase in processing

                                       27
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fees and salary and employee benefits expense, offset by lower operating losses
and equipment expense. The increase in noninterest expense in 2021 from 2020,
and 2020 from 2019 is illustrated in Table 7.

Net interest income


Net interest income is a significant source of the Company's earnings and
represents the amount by which interest income on earning assets exceeds the
interest expense paid on liabilities. The volume of interest earning assets and
the related funding sources, the overall mix of these assets and liabilities,
and the interest rates paid on each affect net interest income. Table 2
summarizes the change in net interest income resulting from changes in volume
and rates for 2021, 2020 and 2019.

Net interest margin, presented in Table 1, is calculated as net interest income
on a fully tax- equivalent basis as a percentage of average earning assets. Net
interest income is presented on a tax-equivalent basis to adjust for the
tax-exempt status of earnings from certain loans and investments, which are
primarily obligations of state and local governments. A critical component of
net interest income and related net interest margin is the percentage of earning
assets funded by interest-free sources. Table 3 analyzes net interest margin for
the three years ended December 31, 2021, 2020 and 2019. Net interest income,
average balance sheet amounts and the corresponding yields earned and rates paid
for the years 2019 through 2021 are presented in Table 1 below.

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The following table presents, for the periods indicated, the average earning
assets and resulting yields, as well as the average interest-bearing liabilities
and resulting yields, expressed in both dollars and rates.

Table 1


THREE YEAR AVERAGE BALANCE SHEETS/YIELDS AND RATES (tax-equivalent basis)
(in millions)

                                                         2021                                               2020
                                                      Interest                                           Interest
                                      Average          Income/        Rate Earned/       Average          Income/        Rate Earned/
                                      Balance        Expense (1)        Paid (1)         Balance        Expense (1)        Paid (1)
ASSETS
Loans and loans held for sale
(FTE) (2) (3)                       $  16,629.9     $       619.3             3.72 %   $  15,126.1     $       586.0             3.87 %
Securities:
Taxable                                 7,422.4             127.6             1.72         5,256.7             105.7             2.01
Tax-exempt (FTE)                        4,247.0             124.5             2.93         4,226.4             126.3             2.99
Total securities                       11,669.4             252.1             2.16         9,483.1             232.0             2.45
Federal funds sold and resell
agreements                              1,234.5              10.1             0.81         1,099.4              11.8             1.08
Interest-bearing due from banks         4,063.1               5.4             0.13         1,218.9               3.8             0.31
Other earning assets (FTE)                 23.5               1.0             4.33            37.1               1.6             4.28
Total earning assets (FTE)             33,620.4             887.9             2.64        26,964.6             835.2             3.10
Allowance for credit losses              (204.7 )                                           (184.5 )
Cash and due from banks                   460.1                                              440.5
Other assets                            1,452.8                                            1,347.5
Total assets                        $  35,328.6                                        $  28,568.1

LIABILITIES AND SHAREHOLDERS'
EQUITY
Interest-bearing demand and
savings deposits                    $  16,982.9     $        24.1             0.14 %   $  14,446.2     $        49.1             0.34 %
Time deposits under $250,000              242.0               0.8             0.33           488.3               5.0             1.02
Time deposits of $250,000 or more         453.2               1.5             0.33           402.0               4.1             1.02
Total interest-bearing deposits        17,678.1              26.4             0.15        15,336.5              58.2             0.38
Borrowed funds                            270.5              12.7             4.68           137.0               7.3             5.30
Federal funds purchased                   163.8                 -             0.04            60.3               0.2             0.26
Securities sold under agreements
to repurchase                           2,454.3               6.9             0.28         1,963.5              11.6             0.59
Total interest-bearing
liabilities                            20,566.7              46.0             0.22        17,497.3              77.3             0.44
Noninterest-bearing demand
deposits                               11,254.8                                            7,845.6
Other                                     418.0                                              420.2
Total                                  32,239.5                                           25,763.1
Total shareholders' equity              3,089.1                                            2,805.0
Total liabilities and
shareholders' equity                $  35,328.6                                        $  28,568.1
Net interest income (FTE)                           $       841.9                                      $       757.9
Net interest spread (FTE)                                                     2.42 %                                             2.66 %
Net interest margin (FTE)                                                     2.50 %                                             2.81 %


(1) Interest income and yield are expressed on an ETP basis, using marginal tax

rate of 21% for 2021, 2020 and 2019. Tax-equivalent interest income and

returns take into account tax-exempt interest income net of refusal to

interest expense, for federal income tax purposes, relating to certain

non-taxable assets. Rates earned/paid may not match rates shown due to

presentation in millions. The tax-equivalent interest income amounts to $26.3

     million, $26.7 million, and $24.0 million in 2021, 2020, and 2019,
     respectively.

(2) Loan fees are included in interest income. These costs totaled $17.1 million,

$13.7 millionand $14.5 million in 2021, 2020 and 2019, respectively.

(3) Unaccrued loans are included in the calculation of the average

sales. Interest income on these loans is also included in loan income.

                                       29
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THREE YEAR AVERAGE BALANCE SHEETS/YIELDS AND RATES (tax-equivalent basis)
(in millions)

                                                                       2019
                                                                    Interest
                                                   Average          Income/          Rate Earned/
                                                   Balance        Expense (1)          Paid (1)
ASSETS
Loans and loans held for sale (FTE) (2) (3)      $  12,764.6     $        637.9               5.00 %
Securities:
Taxable                                              4,524.9              106.1               2.34
Tax-exempt (FTE)                                     3,797.0              113.7               3.00
Total securities                                     8,321.9              219.8               2.64
Federal funds sold and resell agreements               535.4               13.8               2.59
Interest-bearing due from banks                        584.8               12.9               2.20
Other earning assets (FTE)                              52.3                2.5               4.79
Total earning assets (FTE)                          22,259.0              886.9               3.98
Allowance for credit losses                           (107.4 )
Cash and due from banks                                454.6
Other assets                                         1,178.4
Total assets                                     $  23,784.6

LIABILITIES AND EQUITY Sight deposits and interest-bearing savings deposits $12,161.8 $138.7

               1.14 %
Time deposits under $250,000                           366.3                5.6               1.53
Time deposits of $250,000 or more                      644.1                9.9               1.54
Total interest-bearing deposits                     13,172.2              154.2               1.17
Borrowed funds                                          69.8                5.2               7.51
Federal funds purchased                                123.9                2.7               2.13
Securities sold under agreements to repurchase       1,533.4               29.9               1.95
Total interest-bearing liabilities                  14,899.3              192.0               1.29
Noninterest-bearing demand deposits                  6,132.2
Other                                                  301.3
Total                                               21,332.8
Total shareholders' equity                           2,451.8
Total liabilities and shareholders' equity       $  23,784.6
Net interest income (FTE)                                        $        694.9
Net interest spread (FTE)                                                                     2.69 %
Net interest margin (FTE)                                                                     3.12 %




                                       30
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Table 2

RATE-VOLUME ANALYSIS (in thousands)


This analysis attributes changes in net interest income either to changes in
average balances or to changes in average interest rates for earning assets and
interest-bearing liabilities. The change in net interest income that is due to
both volume and interest rate has been allocated to volume and interest rate in
proportion to the relationship of the absolute dollar amount of the change in
each. All interest rates are presented on a tax-equivalent basis and give effect
to tax-exempt interest income net of the disallowance of interest expense for
federal income tax purposes, related to certain tax-free assets. The loan
average balances and rates include nonaccrual loans.

       Average Volume                 Average Rate                                              Increase (Decrease)
    2021             2020           2021         2020            2021 vs. 2020          Volume         Rate          Total
                                                            Change in interest
                                                            earned on:
$ 16,629,867     $ 15,126,110         3.72 %       3.87 %   Loans                      $  56,636     $ (23,320 )   $  33,316
                                                            Securities:
   7,422,432        5,256,715         1.72         2.01     Taxable                       38,880       (16,956 )      21,924
   4,246,943        4,226,363         2.93         2.99     Tax-exempt                       689        (2,204 )      (1,515 )
                                                            Federal funds and resell
   1,234,533        1,099,447         0.81         1.08     agreements                     1,336        (3,128 )      (1,792 )
                                                           

Due bearing interest

   4,063,089        1,218,919         0.13         0.31     from banks                     4,757        (3,084 )       1,673
      23,480           37,086         4.33         4.28     Trading securities              (592 )          19          (573 )
  33,620,344       26,964,640         2.64         3.10     Total                        101,706       (48,673 )      53,033
                                                            Change in interest
                                                            incurred on:
                                                            Interest-bearing
  17,678,122       15,336,492         0.15         0.38     deposits                       7,804       (39,606 )     (31,802 )
     163,744           60,314         0.04         0.26     Federal funds purchased          119          (206 )         (87 )
                                                            Securities sold under
   2,454,290        1,963,499         0.28         0.59     agreements to repurchase       2,414        (7,180 )      (4,766 )
     270,498          136,957         4.68         5.30     Borrowed Funds                 6,337          (941 )       5,396
$ 20,566,654     $ 17,497,262         0.22 %       0.44 %   Total                         16,674       (47,933 )     (31,259 )
                                                            Net interest income        $  85,032     $    (740 )   $  84,292



       Average Volume                 Average Rate                                                Increase (Decrease)
    2020             2019           2020         2019             2020 vs. 2019          Volume          Rate          Total
                                                            Change in interest earned
                                                            on:

$15,126,110 $12,764,623 3.87% 5.00% Loans

             $ 106,011     $ (157,899 )   $  (51,888 )
                                                            Securities:

5,256,715 4,524,955 2.01 2.34 Taxable

                15,854        (16,206 )         (352 )
   4,226,363        3,796,983         2.99         3.00     Tax-exempt                     10,048           (292 )        9,756
                                                            Federal funds and resell
   1,099,447          535,393         1.08         2.59     agreements                      9,107        (11,110 )       (2,003 )
                                                            

Interest bearers due from

   1,218,919          584,756         0.31         2.20     banks                           7,267        (16,405 )       (9,138 )
      37,086           52,306         4.28         4.79     Trading securities               (569 )         (209 )         (778 )
  26,964,640       22,259,016         3.10         3.98     Total                         147,718       (202,121 )      (54,403 )
                                                            Change in interest
                                                            incurred on:

15,336,492 13,172,181 0.38 1.17 Interest-bearing deposits 21,986 (117,964 ) (95,978 )

      60,314          123,871         0.26         2.13     Federal funds purchased          (916 )       (1,565 )       (2,481 )
                                                            Securities sold under
   1,963,499        1,533,412         0.59         1.95     agreements to repurchase        6,904        (25,189 )      (18,285 )
     136,957           69,809         5.30         7.51     Borrowed Funds                  3,906         (1,889 )        2,017
$ 17,497,262     $ 14,899,273         0.44 %       1.29 %   Total                          31,880       (146,607 )     (114,727 )
                                                            Net interest income         $ 115,838     $  (55,514 )   $   60,324




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Table 3

ANALYSIS OF NET INTEREST MARGIN (in thousands)

                                                    2021             2020             2019
Average earning assets                          $ 33,620,344     $ 26,964,640     $ 22,259,016
Interest-bearing liabilities                      20,566,654       17,497,262       14,899,273
Interest-free funds                             $ 13,053,690     $  9,467,378     $  7,359,743
Free funds ratio (interest free funds to
average earning assets)                                38.83 %          35.11 %          33.06 %
Tax-equivalent yield on earning assets                  2.64 %           3.10 %           3.98 %
Cost of interest-bearing liabilities                    0.22             0.44             1.29
Net interest spread                                     2.42 %           2.66 %           2.69 %
Benefit of interest-free funds                          0.08             0.15             0.43
Net interest margin                                     2.50 %           2.81 %           3.12 %



The Company experienced an increase in net interest income of $84.3 million, or
11.5%, for the year ended December 31, 2021, compared to 2020. This follows an
increase of $60.3 million, or 9.0%, for the year ended December 31, 2020,
compared to 2019. Average earning assets for the year ended December 31, 2021
increased by $6.7 billion, or 24.7%, compared to the same period in 2020. Net
interest margin, on a tax-equivalent basis, decreased to 2.50% for 2021 compared
to 2.81% in 2020.

The Company funds a significant portion of its balance sheet with
noninterest-bearing demand deposits. Noninterest-bearing demand deposits
represented 45.9%, 36.5% and 32.1% of total outstanding deposits at December 31,
2021, 2020 and 2019, respectively. As illustrated in Table 3, the impact from
these interest-free funds was eight basis points in 2021, as compared to 15
basis points in 2020 and 43 basis points in 2019.

The Company has experienced an increase in net interest income during 2021 due
to a volume variance of $85.0 million, offset by a very minimal negative rate
variance of $0.7 million. The average rate on earning assets during 2021 has
decreased by 46 basis points, while the average rate on interest-bearing
liabilities decreased by 22 basis points, resulting in a 24 basis-point decrease
in spread. The volume of loans has increased from an average of $15.1 billion in
2020 to an average of $16.6 billion in 2021 driven by organic loan growth. The
volume of interest-bearing liabilities increased from $17.5 billion in 2020 to
$20.6 billion in 2021. The Company expects to see continued volatility in the
economic markets and government responses to these changes as a result of the
COVID-19 pandemic. These changing economic conditions and governmental responses
could have impacts on the balance sheet and income statement of the Company in
2022. Loan-related earning assets tend to generate a higher spread than those
earned in the Company's investment portfolio. By design, the Company's
investment portfolio is moderate in duration and liquid in its composition of
assets.

During 2022, approximately $1.6 billion of available-for-sale securities are
expected to have principal repayments.  This includes approximately $453 million
which will have principal repayments during the first quarter of 2022.  The
available-for-sale investment portfolio had an average life of 67.6 months, 70.1
months, and 70.9 months as of December 31, 2021, 2020, and 2019, respectively.

Allowance and Provision for Credit Losses


The ACL represents management's judgment of total expected losses included in
the Company's loan portfolio as of the balance sheet date. The Company's process
for recording the ACL is based on the evaluation of the Company's lifetime
historical loss experience, management's understanding of the credit quality
inherent in the loan portfolio, and the impact of the current economic
environment, coupled with reasonable and supportable economic forecasts.

A mathematical calculation of an estimate is made to assist in determining the
adequacy and reasonableness of management's recorded ACL. To develop the
estimate, the Company follows the guidelines in Accounting Standards
Codification (ASC) Topic 326, Financial Instruments - Credit Losses (ASC
326). The estimate reserves for assets held at amortized cost and any related
credit deterioration in the Company's available-for-sale debt security
portfolio. Assets held at amortized cost include the Company's loan book and
held-to-maturity security portfolio.

                                       32
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The process involves the consideration of quantitative and qualitative factors
relevant to the specific segmentation of loans. These factors have been
established over decades of financial institution experience and include
economic observation and loan loss characteristics. This process is designed to
produce a lifetime estimate of the losses, at a reporting date, that includes
evaluation of historical loss experience, current economic conditions,
reasonable and supportable forecasts, and the qualitative framework outlined by
the Office of the Comptroller of the Currency in the published 2020 Interagency
Policy Statement. This process allows management to take a holistic view of the
recorded ACL reserve and ensure that all significant and pertinent information
is considered.

The Company considers a variety of factors to ensure the safety and soundness of
its estimate including a strong internal control framework, extensive
methodology documentation, credit underwriting standards which encompass the
Company's desired risk profile, model validation, and ratio analysis. If the
Company's total ACL estimate, as determined in accordance with the approved ACL
methodology, is either outside a reasonable range based on review of economic
indicators or by comparison of historical ratio analysis, the ACL estimate is an
outlier and management will investigate the underlying reason(s). Based on that
investigation, issues or factors that previously had not been considered may be
identified in the estimation process, which may warrant adjustments to estimated
credit losses.

The ending result of this process is a recorded consolidated ACL that represents
management's best estimate of the total expected losses included in the loan
portfolio, held-to-maturity securities, and credit deterioration in
available-for-sale securities.

Table 4 presents the components of the allowance by loan portfolio segment. The
Company manages the ACL against the risk in the entire loan portfolio and
therefore, the allocation of the ACL to a particular loan segment may change in
the future. Management of the Company believes the present ACL is adequate
considering the Company's loss experience, delinquency trends and current
economic conditions. Future economic conditions and borrowers' ability to meet
their obligations, however, are uncertainties which could affect the Company's
ACL and/or need to change its current level of provision. For more information
on loan portfolio segments and ACL methodology refer to Note 3, "Loans and
Allowance for Credit Losses," in the Notes to the Consolidated Financial
Statements.

Table 4

ALLOCATION OF PROVISION FOR CREDIT LOSSES ON CREDIT (in thousands)


This table presents an allocation of the allowance for credit losses on loans
and percent of loans to total loans by loan portfolio segment, which represents
the total expected losses derived by both quantitative and qualitative methods.
The amounts presented are not necessarily indicative of actual future
charge-offs in any particular category and are subject to change.


                                                          2021                                2020
                                              Allowance         Percent of        Allowance         Percent of
                                              for credit      loans to total      for credit      loans to total
At December 31:                                 losses            loans             losses            loans
Commercial and industrial                    $    123,732               42.3 %   $    122,700               43.8 %
Specialty lending                                   1,738                3.0            5,219                3.2
Commercial real estate                             56,265               36.5           61,931               36.7
Consumer real estate                                3,921               13.5            6,586               12.1
Consumer                                              845                0.8            1,480                0.7
Credit cards                                        6,075                2.3           15,786                2.3
Leases and other                                    2,195                1.6            2,271                1.2
Total allowance for credit losses on loans   $    194,771              100.0 %   $    215,973              100.0 %




Table 5 presents a summary of the Company's ACL for the years ended December 31,
2021 and 2020. Also, please see "Quantitative and Qualitative Disclosures About
Market Risk - Credit Risk Management" in this report for information relating to
nonaccrual, past due, restructured loans, and other credit risk matters. For
more information on loan portfolio segments and ACL methodology refer to Note 3,
"Loans and Allowance for Credit Losses," in the Notes to the Consolidated
Financial Statements.

                                       33
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As illustrated in Table 5 below, the ACL decreased as a percentage of total
loans to 1.13% as of December 31, 2021, compared to 1.34% as of December 31,
2020. The provision for credit losses, including provision for off-balance sheet
credit exposures, totaled $20.0 million for the year ended December 31, 2021,
which is a decrease of $110.5 million, or 84.7%, compared to the same period in
2020. The provision for credit losses, including provision for off-balance sheet
credit exposures, totaled $130.5 million for the year ended December 31,
2020. This decrease is the result of the impacts of the current and forecasted
economic environment related to the COVID-19 pandemic during 2020 and 2021,
coupled with various portfolio changes.

Table 5

ANALYSIS OF THE PROVISION FOR CREDIT LOSSES (in thousands)


                                                            2021            

2020

Allowance - January 1                                   $    218,583     $  

101,788

Cumulative effect adjustment(1)                                    -        

9,030

Adjusted allowance - January 1                               218,583        

110,818

Provision for credit losses                                   23,000          127,890
Charge-offs:
Commercial                                                   (13,981 )         (8,587 )
Specialty lending                                            (31,945 )              -
Commercial real estate                                        (1,198 )        (11,939 )
Consumer real estate                                             (96 )           (219 )
Consumer                                                      (2,424 )           (607 )
Credit cards                                                  (6,011 )         (7,326 )
Leases and other                                                  (8 )            (11 )
Total charge-offs                                            (55,663 )        (28,689 )
Recoveries:
Commercial and industrial                                      6,694            6,473
Specialty lending                                                187                -
Commercial real estate                                         1,560               91
Consumer real estate                                             142               69
Consumer                                                         223              307
Credit cards                                                   1,967            1,618
Leases and other                                                  18                6
Total recoveries                                              10,791            8,564
Net charge-offs                                              (44,872 )        (20,125 )
Allowance for credit losses - end of period             $    196,711     $  

218,583

Allowance for credit losses on loans                    $    194,771     $  

215,973

Allowance for credit losses on held-to-maturity
securities                                                     1,940        

2,610

Loans at end of year, net of unearned interest            17,170,871       

16,103,651

Held-to-maturity securities at end of period               1,480,416        

1,014,614

Total assets at amortized cost                            18,651,287       

17,118,265

Average loans, net of unearned interest                   16,618,350       

15,109,392

Provision for credit losses on loans to loans at the end of the period

                                                       1.13 %      

1.34% Allowance for credit losses – end of period on total assets at amortized cost

                                        1.05 %           1.28 %
Allowance as a multiple of net charge-offs                     4.38x        

10.86x

Net charge-offs to average loans                                0.27 %           0.13 %


(1) Linked to the adoption of ASU no. 2016-13. See note 2, “New accounting

Pronunciations”, for more details.

Non-interest income


A key objective of the Company is the growth of noninterest income to provide a
diverse source of revenue not directly tied to interest rates.  Fee-based
services are typically non-credit related and are not generally affected by
fluctuations in interest rates. Noninterest income decreased in 2021 by $93.0
million, or 16.6%, compared to 2020 and increased in 2020 by $133.4 million, or
31.3%, compared to 2019. The decrease in 2021 is primarily

                                       34
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attributable to a decrease in net investment securities gains, offset by an increase in fund services income, corporate trust income and bank card income. These are offset by a decrease in brokerage income. The increase in 2020 is primarily attributable to net investment securities gains, fund services revenue, and trading and investment banking revenue.


The Company's fee-based services offer multiple products and services, which
management believes will more closely align with customer product demands. The
Company is currently emphasizing fee-based services including trust and
securities processing, bankcard, securities trading and brokerage and cash and
treasury management. Management believes that it can offer these products and
services both efficiently and profitably, as most have common platforms and
support structures.

Table 6

SUMMARY OF NON-INTEREST INCOME (in thousands)

                                       Year Ended December 31,                 Dollar Change               Percent Change
                                  2021          2020          2019          21-20          20-19        21-20         20-19
Trust and securities
processing                      $ 224,126     $ 194,646     $ 176,913     $   29,480     $  17,733        15.1 %         10.0 %
Trading and investment
banking                            30,939        32,945        23,466         (2,006 )       9,479        (6.1 )         40.4
Service charges on deposit
accounts                           86,056        83,879        82,748          2,177         1,131         2.6            1.4
Insurance fees and
commissions                         1,309         1,369         1,634            (60 )        (265 )      (4.4 )        (16.2 )
Brokerage fees                     12,171        24,350        31,261        (12,179 )      (6,911 )     (50.0 )        (22.1 )
Bankcard fees                      64,576        60,544        66,727          4,032        (6,183 )       6.7           (9.3 )
Investment securities gains,
net                                 5,057       120,634         2,245       (115,577 )     118,389       (95.8 )      5,273.5
Other                              42,941        41,799        41,776          1,142            23         2.7            0.1
Total noninterest income        $ 467,175     $ 560,166     $ 426,770     $  (92,991 )   $ 133,396       (16.6 )%        31.3 %


Non-interest revenue and year-over-year changes in non-interest revenue are summarized in Table 6 above. The dollar change and percent change columns highlight the respective net increase or decrease of non-interest revenue categories in 2021 compared to 2020, and in 2020 compared to 2019.


Trust and securities processing income consists of fees earned on personal and
corporate trust accounts, custody of securities services, trust investments and
wealth management services, and mutual fund assets servicing. This income
category increased by $29.5 million, or 15.1% in 2021, compared to 2020, and
increased by $17.7 million, or 10.0%, in 2020, compared to 2019. During 2021,
fund services income increased $27.5 million and corporate trust income
increased $5.8 million, offset by a decrease in wealth management income of $3.8
million. During 2020, fund services income increased $10.6 million and corporate
trust income increased $7.2 million.

Trading and investment banking income decreased $2.0 million, or 6.1%, in 2021
compared to 2020 and increased $9.5 million, or 40.4%, in 2020 compared to
2019. The decrease in 2021 compared to 2020 was driven by slightly lower trading
volume and lower market values. The increase in 2020 compared to 2019 was driven
by increased bond trading volume.

Commissions on deposit income increased $2.2 millioni.e. 2.6%, in 2021 compared to 2020 and increased $1.1 million, or 1.4%, in 2020 compared to 2019. The increase in 2021 compared to 2020 is explained by the increase in income from rental charges. The increase in 2020 compared to 2019 is explained by the increase in revenues from health services.


Brokerage fees decreased $12.2 million, or 50.0%, in 2021 compared to 2020 and
$6.9 million, or 22.1%, in 2020 compared to 2019. These decreases were primarily
due to lower money market and 12b-1 income driven by a decrease in volume and
interest rates.

Bankcard fees increased $4.0 million, or 6.7%, in 2021 compared to 2020, and
decreased $6.2 million, or 9.3%, in 2020 compared to 2019. The increase in 2021
compared to 2020 was primarily driven by increased interchange income, offset by
increased rewards and rebate expense. The decrease in 2020 compared to 2019 was
primarily driven by decreased interchange income, offset by decreased rewards
and rebate expense.

                                       35
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Investment securities gains, net decreased $115.6 million in 2021 compared to
2020 but increased by $118.4 million in 2020 compared to 2019, primarily driven
by changes in valuation of the Company's investment in TTCF. The decrease in
2021 was driven by the $15.4 million loss in 2021 on TTCF, coupled with the
$108.8 million gain on TTCF recorded in 2020. This decrease was offset by an
increase of $5.9 million in gains on equity securities without readily
determinable fair values. The increase in 2020 was driven by the $108.8 million
gain on TTCF, an increase of $3.9 million in gains on equity securities without
readily determinable fair values, and an increase of $3.8 million in gains on
sales of available-for-sale securities.

Non-interest expenses


Noninterest expense increased in 2021 by $11.6 million, or 1.4%, compared to
2020 and increased in 2020 by $43.1 million, or 5.5%, compared to 2019. From
2020 to 2021 the increases were driven by processing fees and salary and
employee benefits expense, offset by other miscellaneous expense, and equipment
expense. The main drivers of the increase from 2019 to 2020 were driven by
salary and employee benefits expense, other miscellaneous expense, and equipment
expense, offset by a decrease in marketing and business development
expense. Table 7 below summarizes the components of noninterest expense and the
respective year-over-year changes for each category.

Table 7

SUMMARY OF NON-INTEREST EXPENSES (in thousands)

                                       Year Ended December 31,                Dollar Change            Percent Change
                                  2021          2020          2019         21-20         20-19        21-20       20-19
Salaries and employee
benefits                        $ 504,442     $ 495,464     $ 461,445     $  8,978     $  34,019         1.8 %       7.4 %
Occupancy, net                     47,345        47,476        47,771         (131 )        (295 )      (0.3 )      (0.6 )
Equipment                          78,398        85,719        79,086       (7,321 )       6,633        (8.5 )       8.4
Supplies and services              14,986        15,537        18,699         (551 )      (3,162 )      (3.5 )     (16.9 )
Marketing and business
development                        18,533        14,679        26,257        3,854       (11,578 )      26.3       (44.1 )
Processing fees                    67,563        54,213        52,198       13,350         2,015        24.6         3.9
Legal and consulting               32,406        29,765        31,504        2,641        (1,739 )       8.9        (5.5 )
Bankcard                           19,145        18,954        17,750          191         1,204         1.0         6.8
Amortization of other
intangible assets                   4,757         6,517         5,506       (1,760 )       1,011       (27.0 )      18.4
Regulatory fees                    11,894        10,279        11,489        1,615        (1,210 )      15.7       (10.5 )
Other                              34,167        43,402        27,155       (9,235 )      16,247       (21.3 )      59.8
Total noninterest expense       $ 833,636     $ 822,005     $ 778,860     $ 11,631     $  43,145         1.4 %       5.5 %



Salaries and employee benefits expense increased $9.0 million, or 1.8%, in 2021
compared to 2020 and $34.0 million, or 7.4%, in 2020 compared to 2019. In 2021,
bonus and commission expense increased $8.7 million, or 7.5%, driven by business
volumes and revenue growth, and higher company performance. Salary and wage
expense increased $1.7 million, or 0.6%. These increases were offset by a
decrease in employee benefits expense of $1.4 million, or 1.7%. In 2020, bonus
and commission expense increased $23.6 million, or 25.3%, driven by business
volumes and revenue growth, and higher company performance. Salary and wage
expense increased $12.1 million, or 4.3%. These increases were offset by a
decrease in employee benefits expense of $1.7 million, or 2.1%.

Equipment expense decreased $7.3 million, or 8.5%, in 2021 compared to 2020, and
increased $6.6 million, or 8.4%, from 2019 to 2020, respectively. The decrease
in 2021 was driven by lower software amortization related to a transition to
cloud-based computing solutions. The increase in 2020 compared to 2019 was
driven by computer hardware and software expenses for the ongoing investments in
digital channel and integrated platform solutions to support business growth and
the continued modernization of core systems.

Marketing and business development expense increased $3.9 million, or 26.3%, in
2021 compared to 2020, but decreased $11.6 million, or 44.1%, in 2020 compared
to 2019. The increase in 2021 was driven by the timing of advertising and
business development projects and higher travel expenses as compared to
2020. The decrease in 2020 is driven by reduced travel and entertainment
expenses and business development expense related to the COVID-19 pandemic.

                                       36
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Processing fees expense increased $13.4 million, or 24.6%, in 2021 compared to
2020, and increased $2.0 million, or 3.9%, in 2020 compared to 2019. The
increases in 2021 and 2020 are primarily driven by the transition to cloud
computing solutions and ongoing investments in digital channel and integrated
platform solutions to support business growth and the continued modernization of
core systems.

Other non-interest expense decreased $9.2 millioni.e. 21.3%, in 2021 compared to 2020 and increased $16.2 million, or 59.8%, in 2020 compared to 2019. The decrease in 2021 is due to lower operating losses, partially offset by an increase in charitable contribution expenses. The increase in 2020 is mainly due to higher operating losses and derivative expenses.

Income taxes


Income tax expense totaled $76.0 million, $52.4 million, and $42.4 million in
2021, 2020, and 2019 respectively. These amounts equate to effective tax rates
of 17.7%, 15.5%, and 14.8% for 2021, 2020 and 2019, respectively. The increase
in the effective tax rate from 2020 to 2021 is primarily attributable to a
smaller portion of pre-tax income being earned from tax-exempt municipal
securities and higher state and local income taxes. The increase in the
effective tax rate from 2019 to 2020 is primarily attributable to a smaller
portion of pre-tax income being earned from tax-exempt municipal securities.

For further information on income taxes, refer to Note 16, “Income Taxes”, in the Notes to the Consolidated Financial Statements.

Activity area


The Company has strategically aligned its operations into the following three
reportable segments: Commercial Banking, Institutional Banking, and Personal
Banking (collectively, the Business Segments). Senior executive officers
regularly evaluate Business Segment financial results produced by the Company's
internal reporting system in deciding how to allocate resources and assess
performance for individual Business Segments.  Previously, the Company had the
following four Business Segments: Commercial Banking, Institutional Banking,
Personal Banking, and Healthcare Services. In the first quarter of 2020, the
Company merged the Healthcare Services segment into the Institutional Banking
segment to better reflect how the Company's core businesses, products and
services are currently being evaluated by management. The management accounting
system assigns balance sheet and income statement items to each Business Segment
using methodologies that are refined on an ongoing basis. For comparability
purposes, amounts in all periods are based on methodologies in effect at
December 31, 2021. Previously reported results have been reclassified in this
Form 10-K to conform to the Company's current organizational structure.

Table 8

COMMERCIAL BANKING OPERATING RESULTS (in thousands)

                                    Year Ended              Dollar       Percent
                                   December 31,             Change        Change
                                2021          2020          21-20         21-20
Net interest income           $ 556,673     $ 475,425     $   81,248         17.1 %
Provision for credit losses      15,553       119,424       (103,871 )      (87.0 )
Noninterest income               81,752       189,412       (107,660 )      (56.8 )
Noninterest expense             289,039       272,283         16,756          6.2
Income before taxes             333,833       273,130         60,703         22.2
Income tax expense               59,165        42,223         16,942         40.1
Net income                    $ 274,668     $ 230,907     $   43,761         19.0 %



For the year ended December 31, 2021, Commercial Banking net income increased
$43.8 million, or 19.0%, to $274.7 million compared to the same period in 2020.
Net interest income increased $81.2 million, or 17.1%, for the year ended
December 31, 2021, compared to the same period last year, primarily driven by
strong loan growth, earning asset mix changes, and the Company's participation
in the PPP. PPP loans averaged $802.4 million during 2021, and PPP income
increased $12.4 million as compared to 2020. Provision for credit losses
decreased $103.9 million as compared to 2020. The provision expense for 2020 was
significantly impacted by the adoption of CECL,

                                       37
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coupled with the impacts of the COVID-19 pandemic on the economic environment
and reasonable and supportable economic forecasts. The provision in 2021
represents substantial improvement in these forecasts. Noninterest income
decreased $107.7 million, or 56.8%, over the same period in 2020. Investment
securities gains, net decreased $117.0 million, primarily driven by the change
in market valuation on the Company's investment in TTCF. This decrease was
partially offset by increases of $3.3 million in deposit service charges, $2.7
million in gains on sales of assets, and $2.5 million in bankcard fees.
Noninterest expense increased $16.8 million, or 6.2%, as compared to the same
period in 2020. This increase was driven by an increase of $20.0 million in
technology, service, and overhead expenses, $4.9 million in salaries and
employee benefits expense, $1.8 million in marketing and business development
expense, $1.6 million in processing fees, and $1.3 million in regulatory
fees. These increases were partially offset by a decrease of $12.9 million in
operational losses as compared to 2020.

Table 9

INSTITUTIONAL BANK OPERATING RESULTS (in thousands)

                                    Year Ended             Dollar       Percent
                                   December 31,            Change        Change
                                2021          2020          21-20        21-20
Net interest income           $  87,644     $ 106,856     $ (19,212 )      (18.0 )%
Provision for credit losses         630           882          (252 )      (28.6 )
Noninterest income              273,413       254,874        18,539          7.3
Noninterest expense             292,080       286,635         5,445          1.9
Income before taxes              68,347        74,213        (5,866 )       (7.9 )
Income tax expense               12,113        11,472           641          5.6
Net income                    $  56,234     $  62,741     $  (6,507 )      (10.4 )%



For the year ended December 31, 2021, Institutional Banking net income decreased
$6.5 million, or 10.4%, compared to the same period last year.  Net interest
income decreased $19.2 million, or 18.0%, compared to the same period last year,
due to a decrease in funds transfer pricing driven by lower interest rates.
Noninterest income increased $18.5 million, or 7.3%, primarily due to increases
of $27.5 million in fund services income, $5.8 million in corporate trust
income, both recorded in trust and securities processing revenue, $0.9 million
in bankcard fees and $0.8 million in other income. The increases in fund
services income and corporate trust income are related to increased assets
administered as compared to the prior year. These increases were partially
offset by decreases of $12.0 million in brokerage fees and $4.7 million in bond
trading income. The decrease in brokerage fees is primarily due to lower 12b-1
and money market revenue and the decline in bond trading income is due to
decreased trading volumes. Noninterest expense increased $5.4 million, or 1.9%,
primarily driven by increases of $4.7 million in technology, service, and
overhead expenses and $4.5 million in processing fees. These increases were
partially offset by decreases of $2.8 million in salary and employee benefits
expense, and $1.3 million in equipment expense.

Table 10

OPERATING RESULTS OF THE INDIVIDUAL BANK (in thousands)

                                     Year Ended             Dollar       Percent
                                    December 31,            Change        Change
                                 2021          2020          21-20        21-20
Net interest income            $ 171,204     $ 148,948     $  22,256         14.9 %
Provision for credit losses        3,817        10,194        (6,377 )      (62.6 )
Noninterest income               112,010       115,880        (3,870 )       (3.3 )
Noninterest expense              252,517       263,087       (10,570 )       (4.0 )
Income (loss) before taxes        26,880        (8,453 )      35,333        418.0
Income tax expense (benefit)       4,764        (1,307 )       6,071        464.5
Net income (loss)              $  22,116     $  (7,146 )   $  29,262        409.5 %



For the year ended December 31, 2021, Personal Banking net income increased
$29.3 million as compared to the same period last year.  Net interest income
increased $22.3 million, or 14.9%, compared to the same period last year due to
increased loan balances. Provision for credit losses decreased $6.4 million. The
provision expense for 2020 was significantly impacted by the adoption of CECL,
coupled with the impacts of the COVID-19 pandemic on

                                       38
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the economic environment and reasonable and supportable economic forecasts. The
provision in 2021 represents substantial improvements in these
forecasts. Noninterest income decreased $3.9 million, or 3.3%, primarily driven
by a decrease of $3.8 million in trust income and $1.3 million in equity
earnings on alternative investments. Both decreases are related to the sale of
PCM in the first quarter of 2021. These decreases were partially offset by an
increase of $0.6 million in bankcard fees driven by higher interchange income.
Noninterest expense decreased $10.6 million, or 4.0%, primarily due to decreases
of $7.5 million in salary and employee benefits, $2.6 million in operational
losses, and $2.2 million in legal and consulting expense. These decreases were
partially offset by an increase of $1.8 million in marketing and business
development expense.

Balance sheet analysis

Loans and loans held for sale


Loans represent the Company's largest source of interest income. Loan balances
held for investment increased by $1.1 billion, or 6.6%, in 2021. This increase
was primarily driven by an increase of $374.5 million, or 19.3%, in consumer
real estate loans, $358.6 million, or 6.1%, in commercial real estate loans,
$196.0 million, or 2.8%, in commercial loans, and $91.4 million, or 47.9% in
lease and other loans.

Commercial & industrial loans and commercial real estate loans continue to
represent the largest segments of the Company's loan portfolio, comprising
approximately 42.3% and 36.5%, respectively, of total loans and loans held for
sale at the end of 2021 and 43.8% and 36.7%, respectively, of total loans and
loans held for sale at the end of 2020.

Commercial loans represent the largest percent of total loans. Commercial loans
at December 31, 2021 have increased $196.0 million, or 2.8%, as compared to
December 31, 2020, to 42.3% of total loans. Commercial loans represented 43.8%
of total loans at December 31, 2020. The Company's commercial loan balances have
been impacted by the Company's participation in the PPP. PPP loans totaled
$136.5 million and $1.3 billion as of December 31, 2021 and December 31, 2020,
respectively.

As a percentage of total loans, commercial real estate comprises 36.5% of total
loans compared to 36.7% in 2020. Commercial real estate loans increased $358.6
million, or 6.1%, compared to 2020. Generally, these loans are made for
investment and real estate development or working capital and business expansion
purposes and are primarily secured by real estate with a maximum loan-to-value
of 80%. Most of these properties are non-owner occupied and have guarantees as
additional security.

Consumer real estate loans increased $374.5 million, or 19.3%, and represented
13.5% of total loans. Specialty lending loans increased $11.1 million, or 2.2%,
and represented 3.0% of total loans as of December 31, 2021.

For more information on the segments of the loan portfolio, refer to Note 3, “Loans and allowance for credit losses”, in the notes to the consolidated financial statements.


Nonaccrual, past due and restructured loans are discussed under "Quantitative
and Qualitative Disclosure about Market Risk - Credit Risk Management" in Item
7A of this report.

Investment Securities

The Company's investment portfolio contains trading, available-for-sale (AFS),
and held-to-maturity (HTM) securities as well as FRB stock, Federal Home Loan
Bank (FHLB) stock, and other miscellaneous investments. Investment securities
totaled $13.8 billion as of December 31, 2021 and $10.6 billion as of December
31, 2020 and comprised 33.8% and 34.0% of the Company's earning assets,
respectively, as of those dates.

The Company's AFS securities portfolio comprised 86.7% of the Company's
investment securities portfolio at December 31, 2021, compared to 87.4% at
December 31, 2020. The Company's AFS securities portfolio provides liquidity as
a result of the composition and average life of the underlying securities. This
liquidity can be used to fund loan growth or to offset the outflow of
traditional funding sources. The average life of the AFS securities portfolio
decreased from 70.1 months at December 31, 2020 to 67.6 months at December 31,
2021. In addition to providing a potential source of liquidity, the AFS
securities portfolio can be used as a tool to manage interest rate

                                       39
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sensitivity. The Company’s objective in managing its portfolio of AFS securities is to maximize return within the Company’s liquidity, interest rate risk and credit risk objectives.


Management expects collateral pledging requirements for public funds, loan
demand, and deposit funding to be the primary factors impacting changes in the
level of AFS securities. There were $10.2 billion of AFS securities pledged to
secure U.S. Government deposits, other public deposits, certain trust deposits,
derivative transactions, and repurchase agreements at December 31, 2021. Of this
amount, securities with a market value of $171.2 million at December 31, 2021
were pledged at the Federal Reserve Discount Window but were unencumbered as of
that date.

The Company's HTM securities portfolio consists of private placement bonds,
which are issued primarily to refinance existing revenue bonds in the healthcare
and education sectors, and mortgage-backed securities. The Company's private
placement bond portfolio totaled $1.1 billion as of December 31, 2021, an
increase of $70.3 million, or 7.0%, from December 31, 2020. The Company's HTM
mortgage-backed securities portfolio totaled $396.1 million as of December 31,
2021. The average life of the HTM portfolio was 5.2 years at December 31, 2021,
compared to 6.1 years at December 31, 2020.

The securities portfolio generates the Company's second largest component of
interest income. The AFS, HTM, and Other securities portfolios achieved an
average yield on a tax-equivalent basis of 2.16% for 2021, compared to 2.45% in
2020. Securities available for sale had a net unrealized gain of $153.9 million
at year-end, compared to a net unrealized gain of $412.0 million the preceding
year. This market value change primarily reflects the impact of a larger
portfolio size, shorter average life, and declining mark interest rates as of
December 31, 2021, compared to December 31, 2020. These amounts are reflected,
on an after-tax basis, in the Company's Accumulated other comprehensive income
(loss) in shareholders' equity, as an unrealized gain of $118.5 million at
year-end 2021, compared to an unrealized gain of $314.5 million for 2020. The
AFS securities portfolio contains securities that have unrealized losses (see
the table of these securities in Note 4, "Securities," in the Notes to the
Consolidated Financial Statements). The unrealized losses in the Company's
investments were caused by changes in interest rates, and not from a decline in
credit of the underlying issuers. The U.S. Treasury, U.S. Agency, and GSE
mortgage-backed securities are all considered to be agency-backed securities
with no risk of loss as they are either explicitly or implicitly guaranteed by
the U.S. government. The changes in fair value in the agency-backed portfolios
are solely driven by change in interest rates caused by changing economic
conditions. The Company has no knowledge of any underlying credit issues and the
cash flows underlying the debt securities have not changed and are not expected
to be impacted by changes in interest rates. As of December 31, 2021, the
Company does not believe the decline in value in these portfolios is related to
credit impairments and instead is due to declining interest rates. The Company
does not have the intent to sell these securities and does not believe it is
more likely than not that the Company will be required to sell these securities
before a recovery of amortized cost. As of December 31, 2021, there is no ACL
related to the Company's available-for-sale securities as the decline in fair
value did not result from credit issues.

Included in Tables 11 and 12 are analyses of the fair value and average yield
(tax-equivalent basis) of securities available for sale and securities held to
maturity.

Table 11

SECURITIES AVAILABLE FOR SALE (in thousands)



                                                 U.S. Treasury Securities                  U.S. Agency Securities
                                                                   Weighted                                 Weighted
December 31, 2021                            Fair Value          Average Yield        Fair Value          Average Yield
Due in one year or less                    $            -                     - %   $            -                     - %
Due after 1 year through 5 years                   69,174                  0.85            124,932                  2.29
Due after 5 years through 10 years                      -                     -                  -                     -
Due after 10 years                                      -                     -                  -                     -
Total                                      $       69,174                  0.85 %   $      124,932                  2.29 %




                                       40
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                                                                                                State and Political
                                                  Mortgage-backed Securities                        Subdivisions
                                                                       Weighted                                Weighted
December 31, 2021                             Fair Value             

Average yield Fair value Average yield Maturity in one year or less

                    $          58,963                    2.33 %   $      163,373                2.30 %
Due after 1 year through 5 years                   4,362,831                    1.73            335,743                2.55
Due after 5 years through 10 years                 3,451,389                    1.76            728,909                2.60
Due after 10 years                                    91,872                    2.16          2,194,663                3.30
Total                                      $       7,965,055                    1.75 %   $    3,422,688                3.02 %



                                                     Corporates                  Collateralized Loan Obligations
                                                              Weighted                                Weighted
December 31, 2021                          Fair Value       Average Yield      Fair Value          Average Yield
Due in one year or less                   $      5,070                3.03 %   $        -                        - %
Due after 1 year through 5 years               229,789                1.78              -                        -
Due after 5 years through 10 years              82,987                3.16         27,612                     1.17
Due after 10 years                                   -                   -         49,207                     1.22
Total                                     $    317,846                2.17 %   $   76,819                     1.20 %




                                                 U.S. Treasury Securities                  U.S. Agency Securities
                                                                   Weighted                                 Weighted
December 31, 2020                            Fair Value          Average Yield       Fair Value           Average Yield
Due in one year or less                    $       20,102                  1.03 %   $         202                    1.89 %
Due after 1 year through 5 years                   10,638                  2.59            95,747                    2.68
Due after 5 years through 10 years                      -                     -                 -                       -
Due after 10 years                                      -                     -                 -                       -
Total                                      $       30,740                  1.55 %   $      95,949                    2.67 %



                                                                                               State and Political
                                                 Mortgage-backed Securities                        Subdivisions
                                                                      Weighted                                Weighted
December 31, 2020                             Fair Value           Average Yield          Fair Value        Average Yield
Due in one year or less                    $        171,564                  (3.18 )%   $      226,929                2.21 %
Due after 1 year through 5 years                  2,834,805                   2.19             450,435                2.36
Due after 5 years through 10 years                2,283,389                   1.99             641,051                2.63
Due after 10 years                                  178,423                   1.76           2,305,204                3.37
Total                                      $      5,468,181                   1.93 %    $    3,623,619                3.02 %



                                                Corporates
                                                         Weighted
December 31, 2020                     Fair Value       Average Yield
Due in one year or less              $          -                   - %
Due after 1 year through 5 years           55,249                2.98
Due after 5 years through 10 years         25,950                3.85
Due after 10 years                              -                   -
Total                                $     81,199                3.27 %






                                       41
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Table 12

SECURITIES HELD TO MATURITY (in thousands)

                                            State and Political Subdivisions         Mortgage-backed Securities
                                                                 Weighted                             Weighted
                                                                  Average                              Average
                                                               Yield/Average                        Yield/Average
December 31, 2021                           Fair Value           Maturity         Fair Value          Maturity
Due in one year or less                    $     17,797                  1.60 %   $        -                     - %
Due after 1 year through 5 years                156,927                  2.36        393,717                  1.54
Due after 5 years through 10 years              481,785                  2.49              -                     -
Due over 10 years                               392,165                  2.08              -                     -
Total                                      $  1,048,674                  2.30 %   $  393,717                  1.54 %




                                          State and Political Subdivisions
                                                                   Weighted
                                                                    Average
                                                                 Yield/Average
December 31, 2020                         Fair Value               Maturity
Due in one year or less              $              4,936                  1.78 %
Due after 1 year through 5 years                  126,901                  

2h30

Due after 5 years through 10 years                435,038                  2.47
Due over 10 years                                 462,569                  2.30
Total                                $          1,029,444                  2.37 %



The table below provides detailed information on the other titles at December 31, 2021 and 2020:


Table 13

OTHER SECURITIES (in thousands)

                                                                  December 31,
                                                               2021          2020
FRB and FHLB stock                                           $  36,222     $  33,222
Equity securities with readily determinable fair values         64,149      

134 197

Equity securities with no easily determinable fair value 226,727

 128,634
Total                                                        $ 327,098     $ 296,053



Equity securities with readily determinable fair values are generally traded on
an exchange and market prices are readily available. Equity securities with
readily determinable fair values includes the Company's investment in TTCF,
which had a fair value of $12.5 million as of December 31, 2021 and $106.9
million as of December 31, 2020. During 2021, the Company sold a portion of this
investment with a value of $79.0 million. Equity securities without readily
determinable fair values are generally carried at cost less impairment. Equity
securities without readily determinable fair values also include PCM alternative
investments in hedge funds and private equity funds, which are accounted for as
equity-method investments. During the first quarter of 2021, the Company sold
its membership interest in PCM. Unrealized gains or losses on equity securities
with and without readily determinable fair values are recognized in the
Investment Securities gains, net line of the Company's Consolidated Statements
of Income.

For further information on the Company’s investment securities, refer to Note 4, “Securities”, in the Notes to the Consolidated Financial Statements.

                                       42
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Other productive assets


Federal funds transactions essentially are overnight loans between financial
institutions, which allow for either the daily investment of excess funds or the
daily borrowing of another institution's funds in order to meet short-term
liquidity needs. The net borrowed position was $12.6 million at December 31,
2021 compared to $65.6 million at December 31, 2020.

The Bank buys and sells federal funds as agent for non-affiliated banks. Because
the transactions are pursuant to agency arrangements, these transactions do not
appear on the balance sheet and averaged $394.7 million in 2021 and $362.5
million in 2020.

At December 31, 2021, the Company held securities purchased under agreements to
resell of $1.2 billion compared to $1.7 billion at December 31, 2020. The
Company uses these instruments as short-term secured investments, in lieu of
selling federal funds, or to acquire securities required for collateral
purposes. Balances will fluctuate based on the Company's liquidity and
investment decisions as well as the Company's correspondent bank borrowing
levels. These investments averaged $1.2 billion in 2021 and $1.1 billion in
2020.

The Company also maintains an active securities trading inventory. The average
holdings in the securities trading inventory in 2021 were $23.5 million,
compared to $37.1 million in 2020, and were recorded at fair market value. As
discussed in "Quantitative and Qualitative Disclosures About Market Risk -
Trading Account" in Part II, Item 7A, the Company offsets the trading account
securities by the sale of exchange-traded financial futures contracts, with both
the trading account and futures contracts marked to market daily.

Interest-bearing due from banks totaled $8.8 billion as of December 31, 2021
compared to $3.1 billion as of December 31, 2020 and includes amounts due from
the FRB and interest-bearing accounts held at other financial institutions. The
amount due from the FRB averaged $4.0 billion and $1.2 billion during the years
ended December 31, 2021 and 2020, respectively. The increase in the FRB balance
from 2020 to 2021 is primarily due to an increase in deposit balances as a
result of the Company's participation in the PPP. The interest-bearing accounts
held at other financial institutions totaled $41.2 million and $43.1 million at
December 31, 2021 and 2020, respectively.

Deposits and borrowed funds


Deposits represent the Company's primary funding source for its asset base. In
addition to the core deposits garnered by the Company's retail branch structure,
the Company continues to focus on its cash management services, as well as its
asset management and mutual fund servicing businesses in order to attract and
retain additional core deposits. Deposits totaled $35.6 billion at December 31,
2021 and $27.1 billion at December 31, 2020, an increase of $8.5 billion, or
31.6%. Deposits averaged $28.9 billion in 2021, and $23.2 billion in 2020.

Noninterest-bearing demand deposits averaged $11.3 billion in 2021 and $7.8
billion in 2020. These deposits represented 38.9% of average deposits in 2021,
compared to 33.8% in 2020. The Company's large commercial customer base provides
a significant source of noninterest-bearing deposits. Many of these commercial
accounts do not earn interest; however, they receive an earnings credit to
offset the cost of other services provided by the Company.

Table 14

MATURITIES OF UNINSURED TERM DEPOSITS (in thousands)


                                           December 31,
                                        2021          2020
Maturing within 3 months              $ 318,112     $ 269,489

After 3 months but within 6 months 8,616 16,596 After 6 months but within 12 months 46,839 32,526 After 12 months

                          19,664        17,486
Total                                 $ 393,231     $ 336,097



From December 31, 2021There was $27.4 billion uninsured deposits, compared to $19.7 billion from December 31, 2020.

                                       43
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Table 15

ANALYSIS OF AVERAGE DEPOSITS (in thousands)


                                              December 31,
                                          2021             2020

Rising:

Noninterest-bearing demand            $ 11,254,761     $  7,845,667

Interest-bearing current and savings accounts 16,982,864 14,446,164 Term deposits $250,000

               242,017          488,346
Total core deposits                     28,479,642       22,780,177

Term deposits of $250,000 or more 453,241 401,982 Total deposits

                        $ 28,932,883     $ 23,182,159

As a % of total deposits:
Noninterest-bearing demand                    38.9 %           33.9 %
Interest-bearing demand and savings           58.7             62.3
Time deposits under $250,000                   0.8              2.1
Total core deposits                           98.4             98.3
Time deposits of $250,000 or more              1.6              1.7
Total deposits                               100.0 %          100.0 %



Capital resources and liquidity


The Company places a significant emphasis on the maintenance of a strong capital
position, which it believes promotes investor confidence, provides access to
funding sources under favorable terms, and enhances the Company's ability to
capitalize on business growth and acquisition opportunities. Higher levels of
liquidity, however, bear corresponding costs, measured in terms of lower yields
on short-term, more liquid earning assets, and higher expenses for extended
liability maturities. The Company manages capital for each subsidiary based upon
the subsidiary's respective risks and growth opportunities as well as regulatory
requirements.

Total equity increased $128.5 millioni.e. 4.3% to $3.1 billion at
December 31, 2021 compared to December 31, 2020.


The Board authorized, at its April 27, 2021, April 28, 2020, and April 23, 2019
meetings, the repurchase of up to two million shares of the Company's common
stock during the twelve months following each meeting (each a Repurchase
Authorization). During 2021 and 2020, the Company acquired 67,671 shares and
1,208,623 shares, respectively, of its common stock pursuant to the applicable
Repurchase Authorization. During March 2020, the Company entered into an
agreement with Bank of America Merrill Lynch (BAML) to repurchase an aggregate
of $30.0 million of the Company's common stock through an accelerated share
repurchase agreement (ASR). Under the ASR, the Company repurchased a total of
653,498 shares, which was completed during the second quarter of 2020. The ASR
was entered into pursuant to the April 23, 2019 Repurchase Authorization. The
Company has not made any repurchase of its securities other than pursuant to the
Repurchase Authorizations.

Risk-based capital guidelines established by regulatory agencies set minimum
capital standards based on the level of risk associated with a financial
institution's assets. The Company has implemented the Basel III regulatory
capital rules adopted by the FRB. Basel III capital rules include a minimum
ratio of common equity tier 1 capital to risk-weighted assets of 4.5% and a
minimum tier 1 risk-based capital ratio of 6%. A financial institution's total
capital is also required to equal at least 8% of risk-weighted assets.

The risk-based capital guidelines indicate the specific risk weightings by type
of asset. Certain off-balance sheet items (such as standby letters of credit and
binding loan commitments) are multiplied by credit conversion factors to
translate them into balance sheet equivalents before assigning them specific
risk weightings. The Company is also required to maintain a leverage ratio equal
to or greater than 4%. The leverage ratio is tier 1 core capital to total
average assets less goodwill and intangibles. The Company's capital position as
of December 31, 2021 is summarized in the table below and exceeded regulatory
requirements.

                                       44
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Table 16

CAPITAL AT RISK (in thousands)


This table computes risk-based capital in accordance with current regulatory
guidelines. These guidelines as of December 31, 2021, excluded net unrealized
gains or losses on securities available for sale from the computation of
regulatory capital and the related risk-based capital ratios.

                                                                   Risk-Weighted Category
                                     0%              20%              50%             100%           150%           Total
Risk-Weighted Assets
Loans held for sale             $          -     $          -     $     1,277     $          -     $       -     $      1,277
Loans and leases                     197,502           56,444       2,034,309       14,787,721        94,895       17,170,871
Securities available for sale      1,912,659        9,579,777          13,307          316,840             -       11,822,583
Securities held to maturity          206,368          209,778       1,064,270                -             -        1,480,416
Trading securities                     1,625            4,219          21,671            4,360             -           31,875
Cash and due from banks            8,901,154          354,573               -                -             -        9,255,727
All other assets                      26,394           24,465          35,457        1,424,229             -        1,510,545
Category totals                 $ 11,245,702     $ 10,229,256     $ 3,170,291     $ 16,533,150     $  94,895     $ 41,273,294

Risk-weighted totals            $          -     $  2,045,851     $ 1,585,146     $ 16,533,150     $ 142,343     $ 20,306,490
Off-balance-sheet items (3)                -           14,395          41,195        3,592,832             -        3,648,422
Total risk-weighted assets      $          -     $  2,060,246     $ 1,626,341     $ 20,125,982     $ 142,343     $ 23,954,912



                                         Total
Regulatory Capital
Shareholders' equity                  $ 3,145,424
Less adjustments (1)                     (259,848 )
Common equity Tier 1/Tier 1 capital     2,885,576
Additional Tier 2 capital (2)             438,708
Total capital                         $ 3,324,284



                                                                      Company
Capital ratios
Common Equity Tier 1 capital to risk-weighted assets                         12.05 %
Tier 1 capital to risk-weighted assets                                       12.05 %
Total capital to risk-weighted assets                                        13.88 %
Leverage ratio (Tier 1 capital to total average assets less
adjustments (1))                                                              7.61 %


(1) Adjustments include a portion of goodwill and intangibles as well as

unrealized capital gains/losses on available-for-sale securities, cash flow hedges,

     and the impact of the Company's election to use the five-year CECL
     transition.

(2) Includes the Company’s ACL (including the off-balance sheet reserve

agreements), subordinated long-term debt and preferred subordinated trust

Remarks.

(3) After application of credit conversion factor and risk weighting.

For more information on regulatory capital requirements, see note 10, “Regulatory requirements”, in the notes to the consolidated financial statements, under section 8.


Repurchase agreements are transactions involving the exchange of investment
funds by the customer for securities by the Company, under an agreement to
repurchase the same issues at an agreed-upon price and date. Securities sold
under agreements to repurchase and federal funds purchased totaled $3.2 billion
at December 31, 2021, and $2.3 billion at December 31, 2020. Repurchase
agreements and federal funds purchased averaged $2.6 billion in 2021 and $2.0
billion in 2020. The Company enters into these transactions with its downstream
correspondent banks, commercial customers, and various trust, mutual fund, and
local government relationships.

                                       45
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The Company is a member bank with the FHLB of Des Moines, and through this
relationship, the Company owns $10.0 million of FHLB stock and has access to
additional liquidity and funding sources through FHLB advances. The Company's
borrowing capacity is dependent upon the amount of collateral the Company places
at the FHLB. Based on the collateral pledged, the Company had $1.6 billion of
borrowing capacity at the FHLB at December 31, 2021. The Company had no
outstanding advances at FHLB Des Moines as of December 31, 2021.

To enhance general working capital needs, the Company has a revolving line of
credit with Wells Fargo Bank, N.A. which allows the Company to borrow up to
$30.0 million for general working capital purposes. The interest rate applied to
borrowed balances will be at the Company's option, either 1.25% above LIBOR or
1.75% below the prime rate on the date of an advance. The Company pays a 0.4%
unused commitment fee for unused portions of the line of credit. The Company had
no advances outstanding at December 31, 2021.

Long-term debt totaled $271.5 million at December 31, 2021, compared to $269.6
million at December 31, 2020. In September 2020, the Company issued $200.0
million in aggregate subordinated notes due in September 2030. The Company
received $197.7 million, after deducting underwriting discounts and commissions
and offering expenses, and used the proceeds from the offering for general
corporate purposes, including, among other uses, contributing Tier 1 capital
into the Bank. The subordinated notes were issued with a fixed-to-fixed rate of
3.70% and an effective rate of 3.93%, due to issuance costs, with an interest
rate reset date of September 2025. The remainder of the Company's long-term debt
was assumed from the acquisition of Marquette and consists of debt obligations
payable to four unconsolidated trusts (Marquette Capital Trust I, Marquette
Capital Trust II, Marquette Capital Trust III, and Marquette Capital Trust IV)
that previously issued trust preferred securities. These long-term debt
obligations had an aggregate contractual balance of $103.1 million and had a
carrying value of $73.2 million at December 31, 2021 and $71.7 million at
December 31, 2020. Interest rates on trust preferred securities are tied to the
three-month LIBOR with spreads ranging from 133 basis points to 160 basis points
and reset quarterly. The trust preferred securities have maturity dates ranging
from January 2036 to September 2036. For further information on long-term debt
refer to Note 9, "Borrowed Funds," in the Notes to the Consolidated Financial
Statements.

The Company has material off-balance sheet arrangements in the form of loan
commitments, commercial and standby letters of credit, futures contracts and
forward exchange contracts, which have maturity dates rather than payment due
dates. These commitments and contingent liabilities are not required to be
recorded on the Company's balance sheet. Since commitments associated with
letters of credit and lending and financing arrangements may expire unused, the
amounts shown do not necessarily reflect the actual future cash funding
requirements. See Table 17 below, as well as Note 15, "Commitments,
Contingencies and Guarantees" in the Notes to Consolidated Financial Statements
under Item 8 for detailed information and further discussion of these
arrangements. Management does not anticipate any material losses from its
off-balance sheet arrangements.

Table 17

COMMITMENTS, MATERIAL CASH REQUIREMENTS AND OFF-BALANCE SHEET ARRANGEMENTS (in thousands)


The table below details the commitments, material cash requirements, and
off-balance sheet arrangements for the Company as of December 31, 2021 and
includes principal payments only. The Company has no capital leases or long-term
purchase obligations.

                                                                Payments due by Period
                                                      Less than 1                                     More than 5
                                         Total            year         1-3 years       3-5 years         years
Material Cash Requirements
Federal funds purchased and
repurchase agreements                 $ 3,225,838     $  3,225,588     $        -     $         -     $       250
Long-term debt obligations                273,213                -              -               -         273,213
Operating lease obligations                72,238           12,398         20,100          16,375          23,365
Time deposits                             851,641          734,551         92,044          20,910           4,136
Total                                 $ 4,422,930     $  3,972,537     $  112,144     $    37,285     $   300,964




                                       46
--------------------------------------------------------------------------------

                                                                Maturities due by Period
                                                       Less than 1                                      More than 5
                                         Total             year          1-3 years       3-5 years         years
Commitments, Contingencies and
Guarantees
Commitments to extend credit for
loans (excluding credit card loans)   $ 10,122,617     $  4,246,041     $ 3,906,483     $ 1,270,424     $   699,669
Commitments to extend credit under
credit card loans                        3,743,165        3,743,165               -               -               -
Commercial letters of credit                 2,754            2,754               -               -               -
Standby letters of credit                  365,030          264,424          83,809          16,797               -
Forward contracts                            9,729            9,729               -               -               -
Spot foreign exchange contracts              2,946            2,946               -               -               -
Total                                 $ 14,246,241     $  8,269,059     $ 3,990,292     $ 1,287,221     $   699,669



As of December 31, 2021, the Company's total liabilities for unrecognized tax
benefits were $8.8 million. The Company cannot reasonably estimate the
settlement of these liabilities. Therefore, these liabilities have been excluded
from the table above. See Note 16, "Income Taxes," in the Notes to the
Consolidated Financial Statements for information regarding the liabilities
associated with unrecognized tax benefits.

For further analysis of capital and liquidity, see “Quantitative and Qualitative Disclosures of Market Risk – Liquidity Risk” in Section 7A of this report.

Significant Accounting Policies and Estimates


Management's Discussion and Analysis of Financial Condition and Results of
Operations discusses the Company's Consolidated Financial Statements, which have
been prepared in accordance with accounting principles generally accepted in the
United States of America (GAAP). The preparation of these Consolidated Financial
Statements requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure of contingent
liabilities at the date of the Consolidated Financial Statements and the
reported amounts of revenues and expenses during the reporting period. On an
on-going basis, management evaluates its estimates and judgments, including
those related to customers and suppliers, allowance for credit losses, bad
debts, investments, financing operations, long-lived assets, taxes, other
contingencies and litigation. Management bases its estimates and judgments on
historical experience and on various other factors that are believed to be
reasonable under the circumstances, the results of which have formed the basis
for making such judgments about the carrying value of assets and liabilities
that are not readily apparent from other sources. Under different assumptions or
conditions, actual results may differ from the recorded estimates.

Management believes that the Company’s significant accounting policies and estimates are those relating to the allowance for credit losses.

Provision for credit losses


The Company's ACL represents management's judgment of the total expected losses
included in the Company's assets held at amortized cost. The Company's process
for recording the ACL is based on the evaluation of the Company's lifetime
historical loss experience, management's understanding of the credit quality
inherent in the loan portfolio, and the impact of the current economic
environment, coupled with reasonable and supportable economic forecasts.

A mathematical calculation of an estimate is made to assist in determining the
adequacy and reasonableness of management's recorded ACL. To develop the
estimate, the Company follows the guidelines in ASC Topic 326, Financial
Instruments - Credit Losses. The estimate reserves for assets held at amortized
cost, which include the Company's loan and held-to-maturity security
portfolios.

The estimation process involves the consideration of quantitative and
qualitative factors relevant to the specific segmentation of loans. These
factors have been established over decades of financial institution experience
and include economic observation and loan loss characteristics. This process is
designed to produce a lifetime estimate of the losses, at a reporting date, that
is based on evaluation of historical loss experience, current economic

                                       47

————————————————– ——————————


conditions, reasonable and supportable forecasts, and the qualitative framework
outlined by the Office of the Comptroller of the Currency in the published 2020
Interagency Policy Statement. This process allows management to take a holistic
view of the recorded ACL reserve and ensure that all significant and pertinent
information is considered in its estimate.

The Company considers a variety of factors to ensure the safety and soundness of
its estimate including a strong internal control framework, extensive
methodology documentation, credit underwriting standards which encompass the
Company's desired risk profile, model validation, and ratio analysis. If the
Company's total ACL estimate, as determined in accordance with the approved ACL
methodology, is either outside a reasonable range based on review of economic
indicators or by comparison of historical ratio analysis, the ACL estimate is an
outlier and management will investigate the underlying reason(s). Based on that
investigation, issues or factors that previously had not been considered may be
identified in the estimation process, which may warrant adjustments to estimated
credit losses.

The ending result of this process is a recorded consolidated ACL that represents
management's best estimate of the total expected losses included in the loan and
held-to-maturity security portfolios considering available information, from
internal and external sources, relevant to assessing exposure to credit loss
over the contractual term of the instrument. While management utilizes its best
judgment and information available, the ultimate adequacy of the ACL is
dependent upon a variety of factors beyond the Company's control, including the
performance of its portfolios, the economy, and changes in interest rates. As
such, significant downturns in circumstances relating to loan quality and
economic conditions could result in a requirement for additional
allowance. Likewise, an upturn in loan quality and improved economic conditions
may allow a reduction in the required allowance. In either instance,
unanticipated changes could have a significant impact on the Company's Provision
for credit losses and ACL reported in its Consolidated Income Statements and
Consolidated Balance Sheets, respectively.

For more information on loan portfolio segments, the Company's ACL methodology,
and management's assumptions in estimating the ACL, refer to the section
captioned "Allowance for Credit Losses" within Note 3, "Loans and Allowance for
Credit Losses," in the Notes to the Consolidated Financial Statements.

© Edgar Online, source Previews

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Management’s Discussion and Analysis of Financial Condition and Results of Operations Table of Contents https://freebassuk.com/managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-table-of-contents/ Tue, 22 Feb 2022 22:25:05 +0000 https://freebassuk.com/managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-table-of-contents/ Page Executive Summary 26 Recent Developments 27 Financial Highlights 28 Balance Sheet Overview 30 Supplemental Financial Data 31 Business Segment Operations 36 Consumer Banking 37 Global Wealth & Investment Management 40 Global Banking 42 Global Markets 44 All Other 45 Managing Risk 46 Strategic Risk Management 49 Capital Management 49 Liquidity Risk 54 Credit Risk […]]]>
Page
           Executive Summary                                              26
           Recent Developments                                            27
           Financial Highlights                                           28
           Balance Sheet Overview                                         30
           Supplemental Financial Data                                    31
           Business Segment Operations                                    36
           Consumer Banking                                               37
           Global Wealth & Investment Management                          40
           Global Banking                                                 42
           Global Markets                                                 44
           All Other                                                      45
           Managing Risk                                                  46
           Strategic Risk Management                                      49
           Capital Management                                             49
           Liquidity Risk                                                 54
           Credit Risk Management                                         59
           Consumer Portfolio Credit Risk Management                      60
           Commercial Portfolio Credit Risk Management                    65
           Non-U.S. Portfolio                                             71

         Loan and Lease Contractual Maturities                            72
           Allowance for Credit Losses                                    73
           Market Risk Management                                         75
           Trading Risk Management                                        76
           Interest Rate Risk Management for the Banking Book             79
           Mortgage Banking Risk Management                               80
           Compliance and Operational Risk Management                     80
           Reputational Risk Management                                   81
           Climate Risk Management                                        81
           Complex Accounting Estimates                                   82
           Non-GAAP Reconciliations                                       85


25 Bank of America


————————————————– ——————————

Management report and analysis of the financial situation and operating results


Bank of America Corporation (the "Corporation") and its management may make
certain statements that constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements can be identified by the fact that they do not relate strictly to
historical or current facts. Forward-looking statements often use words such as
"anticipates," "targets," "expects," "hopes," "estimates," "intends," "plans,"
"goals," "believes," "continue" and other similar expressions or future or
conditional verbs such as "will," "may," "might," "should," "would" and "could."
Forward-looking statements represent the Corporation's current expectations,
plans or forecasts of its future results, revenues, provision for credit losses,
expenses, efficiency ratio, capital measures, strategy and future business and
economic conditions more generally, and other future matters. These statements
are not guarantees of future results or performance and involve certain known
and unknown risks, uncertainties and assumptions that are difficult to predict
and are often beyond the Corporation's control. Actual outcomes and results may
differ materially from those expressed in, or implied by, any of these
forward-looking statements.
You should not place undue reliance on any forward-looking statement and should
consider the following uncertainties and risks, as well as the risks and
uncertainties more fully discussed under Item 1A. Risk Factors of this Annual
Report on Form 10-K: and in any of the Corporation's subsequent Securities and
Exchange Commission Filings: the Corporation's potential judgments, orders,
settlements, penalties, fines and reputational damage resulting from pending or
future litigation and regulatory investigations, proceedings and enforcement
actions, including as a result of our participation in and execution of
government programs related to the Coronavirus Disease 2019 (COVID-19) pandemic,
such as the processing of unemployment benefits for California and certain other
states; the possibility that the Corporation's future liabilities may be in
excess of its recorded liability and estimated range of possible loss for
litigation, and regulatory and government actions; the possibility that the
Corporation could face increased claims from one or more parties involved in
mortgage securitizations; the Corporation's ability to resolve representations
and warranties repurchase and related claims; the risks related to the
discontinuation of the London Interbank Offered Rate and other reference rates,
including increased expenses and litigation and the effectiveness of hedging
strategies; uncertainties about the financial stability and growth rates of
non-U.S. jurisdictions, the risk that those jurisdictions may face difficulties
servicing their sovereign debt, and related stresses on financial markets,
currencies and trade, and the Corporation's exposures to such risks, including
direct, indirect and operational; the impact of U.S. and global interest rates,
inflation, currency exchange rates, economic conditions, trade policies and
tensions, including tariffs, and potential geopolitical instability; the impact
of the interest rate and inflationary environment on the Corporation's business,
financial condition and results of operations; the possibility that future
credit losses may be higher than currently expected due to changes in economic
assumptions, customer behavior, adverse developments with respect to U.S. or
global economic conditions and other uncertainties, including the impact of
supply chain disruptions, inflationary pressures and labor shortages on the
economic recovery and our business; the Corporation's concentration of credit
risk; the Corporation's ability to achieve its expense targets and expectations
regarding revenue, net interest income, provision for credit losses, net
charge-offs, effective tax
rate, loan growth or other projections; adverse changes to the Corporation's
credit ratings from the major credit rating agencies; an inability to access
capital markets or maintain deposits or borrowing costs; estimates of the fair
value and other accounting values, subject to impairment assessments, of certain
of the Corporation's assets and liabilities; the estimated or actual impact of
changes in accounting standards or assumptions in applying those standards;
uncertainty regarding the content, timing and impact of regulatory capital and
liquidity requirements; the impact of adverse changes to total loss-absorbing
capacity requirements, stress capital buffer requirements and/or global
systemically important bank surcharges; the potential impact of actions of the
Board of Governors of the Federal Reserve System on the Corporation's capital
plans; the effect of changes in or interpretations of income tax laws and
regulations; the impact of implementation and compliance with U.S. and
international laws, regulations and regulatory interpretations, including, but
not limited to, recovery and resolution planning requirements, Federal Deposit
Insurance Corporation assessments, the Volcker Rule, fiduciary standards,
derivatives regulations and the Coronavirus Aid, Relief, and Economic Security
Act and any similar or related rules and regulations; a failure or disruption in
or breach of the Corporation's operational or security systems or
infrastructure, or those of third parties, including as a result of cyberattacks
or campaigns; the transition and physical impacts of climate change; our ability
to achieve environmental, social and governance goals and commitments or the
impact of any changes in the Corporation's sustainability strategy or
commitments generally; the impact of any future federal government shutdown and
uncertainty regarding the federal government's debt limit or changes in fiscal,
monetary or regulatory policy; the emergence of widespread health emergencies or
pandemics, including the magnitude and duration of the COVID-19 pandemic and its
impact on the U.S. and/or global, financial market conditions and our business,
results of operations, financial condition and prospects; the impact of natural
disasters, extreme weather events, military conflict, terrorism or other
geopolitical events; and other matters.
Forward-looking statements speak only as of the date they are made, and the
Corporation undertakes no obligation to update any forward-looking statement to
reflect the impact of circumstances or events that arise after the date the
forward-looking statement was made.
Notes to the Consolidated Financial Statements referred to in the Management's
Discussion and Analysis of Financial Condition and Results of Operations (MD&A)
are incorporated by reference into the MD&A. Certain prior-year amounts have
been reclassified to conform to current-year presentation. Throughout the MD&A,
the Corporation uses certain acronyms and abbreviations which are defined in the
Glossary.

Executive Summary

Business Overview
The Corporation is a Delaware corporation, a bank holding company (BHC) and a
financial holding company. When used in this report, "the Corporation," "we,"
"us" and "our" may refer to Bank of America Corporation individually, Bank of
America Corporation and its subsidiaries, or certain of Bank of America
Corporation's subsidiaries or affiliates. Our principal executive offices are
located in Charlotte, North Carolina. Through our various bank and nonbank
subsidiaries throughout the U.S. and in international markets, we provide a
diversified range of

Bank of America 26

————————————————– ——————————


banking and nonbank financial services and products through four business
segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global
Banking and Global Markets, with the remaining operations recorded in All Other.
We operate our banking activities primarily under the Bank of America, National
Association (Bank of America, N.A. or BANA) charter. At December 31, 2021, the
Corporation had $3.2 trillion in assets and a headcount of approximately 208,000
employees.
As of December 31, 2021, we served clients through operations across the U.S.,
its territories and approximately 35 countries. Our retail banking footprint
covers all major markets in the U.S., and we serve approximately 67 million
consumer and small business clients with approximately 4,200 retail financial
centers, approximately 16,000 ATMs, and leading digital banking platforms
(www.bankofamerica.com) with approximately 41 million active users, including
approximately 33 million active mobile users. We offer industry-leading support
to approximately three million small business households. Our GWIM businesses,
with client balances of $3.8 trillion, provide tailored solutions to meet client
needs through a full set of investment management, brokerage, banking, trust and
retirement products. We are a global leader in corporate and investment banking
and trading across a broad range of asset classes serving corporations,
governments, institutions and individuals around the world.

RECENT DEVELOPMENTS


Capital Management
On February 2, 2022, the Corporation announced that the Board of Directors
declared a quarterly cash common stock dividend of $0.21 per share, payable on
March 25, 2022 to shareholders of record as of March 4, 2022.
For more information on our capital resources and regulatory developments, see
Capital Management on page 49.

COVID-19 Pandemic
The Coronavirus Disease 2019 (COVID-19) pandemic (the pandemic) has impacted the
Corporation and may continue to do so, as uncertainty remains about the duration
of the pandemic and the timing and strength of the global economic recovery. As
the pandemic continues to evolve, we regularly evaluate protocols and processes
in place to execute our business continuity plans. In conjunction with our
efforts to support clients affected by the pandemic, we have cumulatively
originated $35.4 billion in loans under the Paycheck Protection Program (PPP)
with amounts outstanding of $4.7 billion and $22.7 billion at December 31, 2021
and 2020. For more information on PPP loans, see Note 1 - Summary of Significant
Accounting Principles to the Consolidated Financial Statements.
The future direct and indirect impact of the pandemic on our businesses, results
of operations and financial condition remains uncertain. Should current economic
conditions deteriorate or if the pandemic worsens due to various factors,
including through the spread of more easily communicable variants of COVID-19,
such conditions could have an adverse effect on our businesses and results of
operations and could adversely affect our financial condition.
For more information on how the risks related to the pandemic adversely affect
our businesses, results of operations and financial condition, see Part 1. Item
1A. Risk Factors on page 8.

LIBOR and Other Benchmark Rates
Subject to the continued publication of certain non-representative London
Interbank Offered Rate (LIBOR) benchmark settings based on a modified
calculation (i.e., on a "synthetic" basis), British Pound Sterling, Euro, Swiss
Franc and Japanese Yen LIBOR settings and one-week and two-month U.S. dollar
(USD) LIBOR settings ceased or became no longer representative of the underlying
market the rates seek to measure (i.e., non-representative) immediately after
December 31, 2021, and the remaining USD LIBOR settings (i.e., overnight, one
month, three month, six month and 12 month) will cease or become
non-representative immediately after June 30, 2023. Separately, the Federal
Reserve, the Office of the Comptroller of the Currency (OCC) and the Federal
Deposit Insurance Corporation (FDIC) issued supervisory guidance encouraging
banks to cease entering into new contracts that use USD LIBOR as a reference
rate by December 31, 2021 subject to certain regulatory-approved exceptions (USD
LIBOR Guidance).
As a result, a major transition has been and continues to be in progress in the
global financial markets with respect to the replacement of Interbank Offered
Rates (IBORs). This is a complex process impacting a variety of our businesses
and operations. IBORs have historically been used in many of the Corporation's
products and contracts, including derivatives, consumer and commercial loans,
mortgages, floating-rate notes and other adjustable-rate products and financial
instruments. In response, the Corporation established an enterprise-wide IBOR
transition program, with active involvement of senior management and regular
reports to the Management Risk Committee (MRC) and Enterprise Risk Committee
(ERC). The program continues to drive the Corporation's industry and regulatory
engagement, client and financial contract changes, internal and external
communications, technology and operations modifications, including updates to
its operational models, systems and processes, introduction of new products,
migration of existing clients, and program strategy and governance.
As of December 31, 2021, the Corporation has transitioned or otherwise addressed
IBOR-based products and contracts referencing the rates that ceased or became
non-representative after December 31, 2021, including LIBOR-linked commercial
loans, LIBOR-based adjustable-rate consumer mortgages, LIBOR-linked derivatives
and interdealer trading of certain USD LIBOR and other interest rate swaps, and
related hedging
27 Bank of America

--------------------------------------------------------------------------------

arrangements. Additionally, in accordance with the USD LIBOR Guidance, the
Corporation has ceased entering into new contracts that use USD LIBOR as a
reference rate, subject to certain regulatory-approved exceptions.
The Corporation launched capabilities and services to support the issuance and
trading in products indexed to various alternative reference rates (ARRs) and
developed employee training programs as well as other internal and external
sources of information on the various challenges and opportunities that the
replacement of IBORs has presented and continues to present. The Corporation
continues to monitor a variety of market scenarios as part of its transition
efforts, including risks associated with insufficient preparation by individual
market participants or the overall market ecosystem, ability of market
participants to meet regulatory and industry-wide recommended milestones and
access and demand by clients and market participants to liquidity in certain
products, including LIBOR products.
With respect to the transition of LIBOR products referencing USD LIBOR settings
ceasing or becoming non-representative as of June 30, 2023, a significant
majority of the Corporation's notional contractual exposure to such LIBOR
currencies, of which the significant majority is derivatives contracts, have
been remediated (i.e., updated to include fallback provisions to ARRs based on
market driven protocols, regulatory guidance and industry-recommended fallback
provisions and related mechanisms) and the Corporation is continuing to
remediate the remaining USD LIBOR exposure. The remaining exposure, a majority
of which is made up of derivatives and commercial loans and which represents a
small minority of outstanding USD LIBOR notional contractual exposure of the
Corporation, will require active dialogue with clients to modify the contracts.
For any residual exposures after June 2023 that continue to have no fallback
provisions, the Corporation is assessing and planning to leverage relevant
contractual and statutory solutions, including relevant state legislation and
any future federal legislation, to transition such exposure to ARRs.
The Corporation has implemented regulatory, tax and accounting changes and
continues to monitor current and potential impacts of the transition, including
Internal Revenue Service tax regulations and guidance and Financial Accounting
Standards Board guidance. In addition, the Corporation has engaged impacted
clients in connection with the transition by providing ARRs education and the
timing of transition events. The Corporation is also working actively with
global regulators, industry working groups and trade associations. For more
information on the expected replacement of LIBOR and other benchmark rates, see
Item 1A. Risk Factors - Other on page 21.

Changes to Overdraft Services
In January 2022, the Corporation announced changes to its overdraft services for
consumer and small business clients, which include eliminating non-sufficient
funds (NSF) fees beginning in February 2022 and reducing overdraft fees from $35
to $10 beginning in May 2022. Fees from overdraft services were approximately $1
billion in 2021 and recorded in Consumer Banking as service charges in the
Consolidated Statement of Income. Due to the policy changes, in 2022 the
Corporation expects a significant reduction in NSF and overdraft fees.



Financial Highlights
Table 1                      Summary Income Statement and Selected Financial Data

(Dollars in millions, except per share information)                                                                        2021                     2020
Income statement
Net interest income                                                                                                 $        42,934          $        43,360
Noninterest income                                                                                                           46,179                   42,168
Total revenue, net of interest expense                                                                                       89,113                   85,528
Provision for credit losses                                                                                                  (4,594)                  11,320
Noninterest expense                                                                                                          59,731                   55,213
Income before income taxes                                                                                                   33,976                   18,995
Income tax expense                                                                                                            1,998                    1,101
Net income                                                                                                                   31,978                   17,894
Preferred stock dividends                                                                                                     1,421                    1,421
Net income applicable to common shareholders                                                                        $        30,557          $        16,473

Per common share information
Earnings                                                                                                            $          3.60          $          1.88
Diluted earnings                                                                                                               3.57                     1.87
Dividends paid                                                                                                                 0.78                     0.72
Performance ratios
Return on average assets (1)                                                                                                   1.05  %                  0.67  %
Return on average common shareholders' equity (1)                                                                             12.23                     

6.76

Return on average tangible common shareholders' equity (2)                                                                    17.02                     9.48
Efficiency ratio (1)                                                                                                          67.03                    64.55

Balance sheet at year end
Total loans and leases                                                                                              $       979,124          $       927,861
Total assets                                                                                                              3,169,495                2,819,627
Total deposits                                                                                                            2,064,446                1,795,480
Total liabilities                                                                                                         2,899,429                2,546,703
Total common shareholders' equity                                                                                           245,358                  248,414
Total shareholders' equity                                                                                                  270,066                  272,924


(1)For definitions, see Key Metrics on page 169.
(2)Return on average tangible common shareholders' equity is a non-GAAP
financial measure. For more information and a corresponding reconciliation to
the most closely related financial measures defined by accounting principles
generally accepted in the United States of America (GAAP), see Non-GAAP
Reconciliations on page 85.

Net income was $32.0 billion or $3.57 per diluted share in 2021 compared to
$17.9 billion or $1.87 per diluted share in 2020. The increase in net income was
due to improvement in the provision for credit losses and higher revenue,
partially offset by higher noninterest expense.
For discussion and analysis of our consolidated and business segment results of
operations for 2020 compared to 2019, see the Financial Highlights and Business
Segment Operations sections in the MD&A of the Corporation's 2020 Annual Report
on Form 10-K.

Net Interest Income
Net interest income decreased $426 million to $42.9 billion in 2021 compared to
2020. Net interest yield on a fully taxable-equivalent (FTE) basis decreased 24
basis points (bps) to 1.66 percent for 2021. The decrease in net interest income
was primarily driven by lower interest rates and average loan balances,
partially offset by higher average balances of debt securities. For more
information on net interest yield and the FTE basis, see Supplemental Financial
Data on page 31, and for more information on interest rate risk management, see
Interest Rate Risk Management for the Banking Book on page 79.






        Bank of America 28

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Non-interest income

Table 2 Non-interest income

(Dollars in millions)                                    2021          2020
Fees and commissions:
Card income                                           $  6,218      $  5,656
Service charges                                          7,504         7,141
Investment and brokerage services                       16,690        14,574
Investment banking fees                                  8,887         7,180
Total fees and commissions                              39,299        34,551
Market making and similar activities                     8,691         8,355

Other income                                            (1,811)         (738)

Total noninterest income                              $ 46,179      $ 42,168

Non-interest income increased $4.0 billion for $46.2 billion in 2021 compared to 2020. The following highlights the significant changes.


?  Card income increased $562 million primarily driven by increased client
activity and merchant services revenue.
?  Service charges increased $363 million primarily due to higher treasury and
credit service charges and increased client activity.
?  Investment and brokerage services increased $2.1 billion primarily driven by
higher market valuations and assets under management (AUM) flows, partially
offset by declines in AUM pricing.
?  Investment banking fees increased $1.7 billion primarily due to higher
advisory fees as well as higher debt and equity issuance fees.
?  Market making and similar activities increased $336 million primarily driven
by strong sales and trading performance in Equities, partially offset by a
weaker performance in Fixed Income, Currencies and Commodities (FICC), which
benefited from a more favorable market environment in 2020.
?  Other income decreased $1.1 billion primarily due to a $704 million gain on
sales of certain mortgage loans in the prior year, as well as higher partnership
losses on tax credit investments.

Provision for Credit Losses
The provision for credit losses improved $15.9 billion to a benefit of $4.6
billion in 2021 compared to 2020. The benefit was primarily due to improvements
in the macroeconomic outlook and credit quality. For more information on the
provision for credit losses, see Allowance for Credit Losses on page 73.

Non-interest expenses


Table 3           Noninterest Expense

(Dollars in millions)                                          2021          2020
Compensation and benefits                                   $ 36,140      $ 32,725
Occupancy and equipment                                        7,138         7,141
Information processing and communications                      5,769        

5,222

Product delivery and transaction related                       3,881         3,433
Marketing                                                      1,939         1,701
Professional fees                                              1,775         1,694
Other general operating                                        3,089         3,297
Total noninterest expense                                   $ 59,731      $ 55,213


Noninterest expense increased $4.5 billion to $59.7 billion in 2021 compared to
2020. The increase was primarily due to higher compensation and benefits
expense, higher costs associated with processing transactional card claims
related to state unemployment benefits, a contribution to the Bank of America
Foundation and an impairment charge for real estate rationalization.

income tax expense

Table 4 Income tax expense

(Dollars in millions)                           2021           2020
Income before income taxes                   $ 33,976       $ 18,995
Income tax expense                              1,998          1,101
Effective tax rate                                5.9  %         5.8  %


Income tax expense was $2.0 billion for 2021 compared to $1.1 billion in 2020,
resulting in an effective tax rate of 5.9 percent compared to 5.8 percent.
The effective tax rates for 2021 and 2020 were driven by the impact of our
recurring tax preference benefits and positive income tax adjustments from the
impact of U.K. tax law changes discussed below. Our recurring tax preference
benefits primarily consist of tax credits from environmental, social and
governance (ESG) investments in affordable housing and renewable energy,
aligning with our responsible growth strategy to address global sustainability
challenges. Absent these tax credits, the impact of the U.K. tax law changes and
other discrete items, the effective tax rates would have been approximately 25
percent and 26 percent for 2021 and 2020.
In June 2021, the U.K. enacted the 2021 Finance Act, which included an increase
in the U.K. corporation income tax rate to 25 percent from 19 percent. This
change is effective April 1, 2023 and unfavorably affects income tax expense on
future U.K. earnings. In addition, in July 2020, the U.K. enacted a repeal of
the final two percent of scheduled decreases in the U.K. corporation income tax
rate. As a result, in 2021 and 2020, the Corporation recorded write-ups of U.K.
net deferred tax assets of approximately $2.0 billion and $700 million, with
corresponding positive income tax adjustments. These write-ups were reversals of
previously recorded write-downs of net deferred tax assets for prior changes in
the U.K. corporation income tax rate.

29 Bank of America

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Balance Sheet Overview

Table 5                 Selected Balance Sheet Data

                                                                                 December 31
(Dollars in millions)                                                     2021                 2020              $ Change            % Change
Assets
Cash and cash equivalents                                            $   348,221          $   380,463          $ (32,242)                   (8) %
Federal funds sold and securities borrowed or purchased under
agreements to resell                                                     250,720              304,058            (53,338)                  (18)
Trading account assets                                                   247,080              198,854             48,226                    24
Debt securities                                                          982,627              684,850            297,777                    43
Loans and leases                                                         979,124              927,861             51,263                     6
Allowance for loan and lease losses                                      (12,387)             (18,802)             6,415                   (34)
All other assets                                                         374,110              342,343             31,767                     9
Total assets                                                         $ 3,169,495          $ 2,819,627          $ 349,868                    12
Liabilities
Deposits                                                             $ 2,064,446          $ 1,795,480          $ 268,966                    15
Federal funds purchased and securities loaned or sold under
agreements to repurchase                                                 192,329              170,323             22,006                    13
Trading account liabilities                                              100,690               71,320             29,370                    41
Short-term borrowings                                                     23,753               19,321              4,432                    23
Long-term debt                                                           280,117              262,934             17,183                     7
All other liabilities                                                    238,094              227,325             10,769                     5
Total liabilities                                                      2,899,429            2,546,703            352,726                    14
Shareholders' equity                                                     270,066              272,924             (2,858)                   (1)
Total liabilities and shareholders' equity                           $ 3,169,495          $ 2,819,627          $ 349,868                    12


Assets

At December 31, 2021, total assets were approximately $3.2 trillion, up $349.9
billion from December 31, 2020. The increase in assets was primarily due to
higher debt securities that were primarily funded by deposit growth, an increase
in loans and leases and higher trading account assets, partially offset by lower
federal funds sold and securities borrowed or purchased under agreements to
resell and cash and cash equivalents.

Cash and Cash Equivalents
Cash and cash equivalents decreased $32.2 billion primarily driven by higher
investments in debt securities.

Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to
Resell
Federal funds transactions involve lending reserve balances on a short-term
basis. Securities borrowed or purchased under agreements to resell are
collateralized lending transactions utilized to accommodate customer
transactions, earn interest rate spreads and obtain securities for settlement
and for collateral. Federal funds sold and securities borrowed or purchased
under agreements to resell decreased $53.3 billion primarily due to the
investment of excess cash into debt securities.

Trading Account Assets
Trading account assets consist primarily of long positions in equity and
fixed-income securities including U.S. government and agency securities,
corporate securities and non-U.S. sovereign debt. Trading account assets
increased $48.2 billion primarily due to an increase in inventory within Global
Markets.

Debt Securities
Debt securities primarily include U.S. Treasury and agency securities,
mortgage-backed securities (MBS), principally agency MBS, non-U.S. bonds,
corporate bonds and municipal debt. We use the debt securities portfolio
primarily to manage interest rate and liquidity risk and to leverage market
conditions that create economically attractive returns on these investments.
Debt securities increased $297.8 billion primarily driven by the deployment of
deposit inflows. For more information on debt

securities, see Note 4 – Securities to the consolidated financial statements.


Loans and Leases
Loans and leases increased $51.3 billion primarily driven by growth in
commercial loans and higher securities-based lending within consumer loans. For
more information on the loan portfolio, see Credit Risk Management on page 59.

Allowance for Loan and Lease Losses
The allowance for loan and lease losses decreased $6.4 billion primarily due to
improvements in the macroeconomic outlook and credit quality. For more
information, see Allowance for Credit Losses on page 73.

All Other Assets
All other assets increased $31.8 billion primarily driven by higher margin loans
and loans held-for-sale (LHFS).

Passives

AT December 31, 2021total liabilities were approximately $2.9 trillionat the top
$352.7 billion from December 31, 2020mainly due to growth in deposits.

Deposits

Deposits increased $269.0 billion mainly due to an increase in retail and wholesale deposits.


Federal Funds Purchased and Securities Loaned or Sold Under Agreements to
Repurchase
Federal funds transactions involve borrowing reserve balances on a short-term
basis. Securities loaned or sold under agreements to repurchase are
collateralized borrowing transactions utilized to accommodate customer
transactions, earn interest rate spreads and finance assets on the balance
sheet. Federal funds purchased and securities loaned or sold under agreements to
repurchase increased $22.0 billion primarily driven by client activity within
Global Markets.

Trading Account Liabilities
Trading account liabilities consist primarily of short positions in equity and
fixed-income securities including U.S. Treasury and agency securities, corporate
securities and non-U.S. sovereign

Bank of America 30

————————————————– ——————————

debt. Trading account liabilities increased $29.4 billion mainly due to higher levels of short positions in global markets.


Short-term Borrowings
Short-term borrowings provide an additional funding source and primarily consist
of Federal Home Loan Bank (FHLB) short-term borrowings, notes payable and
various other borrowings that generally have maturities of one year or less.
Short-term borrowings increased $4.4 billion primarily due to an increase in
short-term commercial paper issuances to manage liquidity needs. For more
information on short-term borrowings, see Note 10 - Securities Financing
Agreements, Short-term Borrowings and Restricted Cash to the Consolidated
Financial Statements.

Long-term Debt
Long-term debt increased $17.2 billion primarily due to debt issuances,
partially offset by maturities, redemptions and valuation adjustments. For more
information on long-term debt, see Note 11 - Long-term Debt to the Consolidated
Financial Statements.

Shareholders' Equity
Shareholders' equity decreased $2.9 billion primarily due to returns of capital
to shareholders through common stock repurchases and common and preferred stock
dividends, market value decreases on derivatives and debt securities and the
redemption of preferred stock, partially offset by net income.

Cash Flows Overview
The Corporation's operating assets and liabilities support our global markets
and lending activities. We believe that cash flows from operations, available
cash balances and our ability to generate cash through short- and long-term debt
are sufficient to fund our operating liquidity needs. Our investing activities
primarily include the debt securities portfolio and loans and leases. Our
financing activities reflect cash flows primarily related to customer deposits,
securities financing agreements, long-term debt and common and preferred stock.
For more information on liquidity, see Liquidity Risk on page 54.

Additional financial data


Non-GAAP Financial Measures
In this Form 10-K, we present certain non-GAAP financial measures. Non-GAAP
financial measures exclude certain items or otherwise include components that
differ from the most directly comparable measures calculated in accordance with
GAAP. Non-GAAP financial measures are provided as additional useful information
to assess our financial condition, results of operations (including
period-to-period operating performance) or compliance with prospective
regulatory requirements. These non-GAAP financial measures are not intended as a
substitute for GAAP financial measures and may not be defined or calculated the
same way as non-GAAP financial measures used by other companies.
We view net interest income and related ratios and analyses on an FTE basis,
which when presented on a consolidated basis are non-GAAP financial measures. To
derive the FTE basis, net interest income is adjusted to reflect tax-exempt
income on an equivalent before-tax basis with a corresponding increase in income
tax expense. For purposes of this calculation, we use the federal statutory tax
rate of 21 percent and a representative state tax rate. Net interest yield,
which measures the basis points we earn over the cost of funds, utilizes net
interest income on an FTE basis. We believe that presentation of these items on
an FTE basis allows for comparison of amounts from
both taxable and tax-exempt sources and is consistent with industry practices.
We may present certain key performance indicators and ratios excluding certain
items (e.g., debit valuation adjustment (DVA) gains (losses)) which result in
non-GAAP financial measures. We believe that the presentation of measures that
exclude these items is useful because such measures provide additional
information to assess the underlying operational performance and trends of our
businesses and to allow better comparison of period-to-period operating
performance.
We also evaluate our business based on certain ratios that utilize tangible
equity, a non-GAAP financial measure. Tangible equity represents shareholders'
equity or common shareholders' equity reduced by goodwill and intangible assets
(excluding mortgage servicing rights (MSRs)), net of related deferred tax
liabilities ("adjusted" shareholders' equity or common shareholders' equity).
These measures are used to evaluate our use of equity. In addition,
profitability, relationship and investment models use both return on average
tangible common shareholders' equity and return on average tangible
shareholders' equity as key measures to support our overall growth objectives.
These ratios are as follows:

?  Return on average tangible common shareholders' equity measures our net
income applicable to common shareholders as a percentage of adjusted average
common shareholders' equity. The tangible common equity ratio represents
adjusted ending common shareholders' equity divided by total tangible assets.
?  Return on average tangible shareholders' equity measures our net income as a
percentage of adjusted average total shareholders' equity. The tangible equity
ratio represents adjusted ending shareholders' equity divided by total tangible
assets.
?  Tangible book value per common share represents adjusted ending common
shareholders' equity divided by ending common shares outstanding.

We believe ratios utilizing tangible equity provide additional useful
information because they present measures of those assets that can generate
income. Tangible book value per common share provides additional useful
information about the level of tangible assets in relation to outstanding shares
of common stock.
The aforementioned supplemental data and performance measures are presented in
Tables 6 and 7.
For more information on the reconciliation of these non-GAAP financial measures
to the corresponding GAAP financial measures, see Non-GAAP Reconciliations on
page 85.

Key Performance Indicators
We present certain key financial and nonfinancial performance indicators (key
performance indicators) that management uses when assessing our consolidated
and/or segment results. We believe they are useful to investors because they
provide additional information about our underlying operational performance and
trends. These key performance indicators (KPIs) may not be defined or calculated
in the same way as similar KPIs used by other companies. For information on how
these metrics are defined, see Key Metrics on page 169.
Our consolidated key performance indicators, which include various equity and
credit metrics, are presented in Table 1 on page 28, Table 6 on page 32 and
Table 7 on page 33.
For information on key segment performance metrics, see Business Segment
Operations on page 36.

31 Bank of America

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© Edgar Online, source Previews

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Does Petrus Resources (TSE:PRQ) have a healthy balance sheet? https://freebassuk.com/does-petrus-resources-tseprq-have-a-healthy-balance-sheet/ Sun, 20 Feb 2022 14:42:15 +0000 https://freebassuk.com/does-petrus-resources-tseprq-have-a-healthy-balance-sheet/ Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very […]]]>

Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. We can see that Petrus Resources Ltd. (TSE:PRQ) uses debt in its business. But the real question is whether this debt makes the business risky.

What risk does debt carry?

Generally speaking, debt only becomes a real problem when a company cannot easily repay it, either by raising capital or with its own cash flow. An integral part of capitalism is the process of “creative destruction” where bankrupt companies are mercilessly liquidated by their bankers. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. Of course, the advantage of debt is that it often represents cheap capital, especially when it replaces dilution in a business with the ability to reinvest at high rates of return. When we think about a company’s use of debt, we first look at cash and debt together.

Discover our latest analysis for Petrus Resources

What is Petrus Resources net debt?

As you can see below, Petrus Resources had C$59.5 million in debt as of September 2021, up from C$115.8 million the previous year. On the other hand, it has C$1.51 million in cash, resulting in a net debt of approximately C$58.0 million.

TSX:PRQ Debt to Equity Historical February 20, 2022

A look at the liabilities of Petrus Resources

Zooming in on the latest balance sheet data, we can see that Petrus Resources had liabilities of C$79.5 million due within 12 months and liabilities of C$40.2 million due beyond. On the other hand, it had liquid assets of 1.51 million Canadian dollars and 9.16 million Canadian dollars of receivables due within one year. Thus, its liabilities outweigh the sum of its cash and (current) receivables of C$109.0 million.

This deficit is considerable compared to its market capitalization of 149.2 million Canadian dollars, so it suggests that shareholders monitor the use of debt by Petrus Resources. If its lenders asked it to shore up its balance sheet, shareholders would likely face significant dilution.

In order to assess a company’s debt relative to its earnings, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its earnings before interest and taxes (EBIT) divided by its expenses. interest (its interest coverage). In this way, we consider both the absolute amount of debt, as well as the interest rates paid on it.

Even though Petrus Resources’ debt is only 2.2, its interest coverage is really very low at 0.27. The main reason for this is that it has such high depreciation and amortization. These fees may be non-monetary, so they could be excluded when it comes to repaying the debt. But accounting fees are there for a reason: some assets seem to lose value. Either way, it’s safe to say that the company has significant debt. Notably, Petrus Resources recorded a loss in EBIT last year, but improved it to a positive EBIT of C$2.6 million over the last twelve months. There is no doubt that we learn the most about debt from the balance sheet. But you can’t look at debt in total isolation; since Petrus Resources will need revenue to repay this debt. So, if you want to know more about its earnings, it might be worth checking out this graph of its long-term trend.

Finally, while the taxman may love accounting profits, lenders only accept cash. It is therefore important to check how much of its earnings before interest and taxes (EBIT) converts into actual free cash flow. Fortunately for all shareholders, Petrus Resources has actually produced more free cash flow than EBIT over the past year. This kind of high cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.

Our point of view

Neither the ability of Petrus Resources to cover its interest charges with its EBIT nor its level of total liabilities gave us confidence in its ability to take on more debt. But the good news is that it seems to be able to easily convert EBIT to free cash flow. We think Petrus Resources’ debt makes it a bit risky, after looking at the aforementioned data points together. Not all risk is bad, as it can increase stock price returns if it pays off, but this leverage risk is worth keeping in mind. When analyzing debt levels, the balance sheet is the obvious starting point. But at the end of the day, every business can contain risks that exist outside of the balance sheet. Be aware that Petrus Resources displays 2 warning signs in our investment analysis and 1 of them does not suit us too much…

Of course, if you’re the type of investor who prefers to buy stocks without the burden of debt, then feel free to check out our exclusive list of cash-efficient growth stocks today.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Parsvnath Developers (NSE:PARSVNATH) seems to use a lot of debt https://freebassuk.com/parsvnath-developers-nseparsvnath-seems-to-use-a-lot-of-debt/ Sat, 19 Feb 2022 02:53:23 +0000 https://freebassuk.com/parsvnath-developers-nseparsvnath-seems-to-use-a-lot-of-debt/ Legendary fund manager Li Lu (whom Charlie Munger once backed) once said, “The greatest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. We note […]]]>

Legendary fund manager Li Lu (whom Charlie Munger once backed) once said, “The greatest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. We note that Parsvnath Developers Limited (NSE:PARSVNATH) has debt on its balance sheet. But does this debt worry shareholders?

What risk does debt carry?

Debt helps a business until the business struggles to pay it back, either with new capital or with free cash flow. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. Of course, debt can be an important tool in businesses, especially capital-intensive businesses. The first thing to do when considering how much debt a business has is to look at its cash flow and debt together.

Check out our latest analysis for Parsvnath Developers

What is Parsvnath Developers net debt?

You can click on the graph below for historical figures, but it shows that as of September 2021, Parsvnath developers had ₹36.4 billion in debt, an increase from ₹30.1 billion, on a year. On the other hand, he has ₹1.05 billion in cash, resulting in a net debt of around ₹35.4 billion.

NSEI: PARSVNATH Debt to Equity History February 19, 2022

A Look at the Responsibilities of Parsvnath Developers

According to the latest published balance sheet, Parsvnath Developers had liabilities of ₹52.0 billion due within 12 months and liabilities of ₹26.0 billion due beyond 12 months. As compensation for these obligations, it had cash of ₹1.05 billion as well as receivables valued at ₹2.91 billion due within 12 months. Thus, its liabilities total ₹74.1 billion more than the combination of its cash and short-term receivables.

This deficit casts a shadow over the ₹7.18 billion society, like a colossus towering above mere mortals. So we definitely think shareholders need to watch this one closely. Ultimately, Parsvnath Developers would likely need a major recapitalization if its creditors were to demand repayment.

We measure a company’s leverage against its earning power by looking at its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and calculating how easily its earnings before interest and taxes (EBIT ) covers its interest charge (interest coverage). Thus, we consider debt to earnings with and without amortization and depreciation expense.

Low interest coverage of 0.11x and an extremely high net debt to EBITDA ratio of 54.6 shook our confidence in Parsvnath Developers like a punch in the gut. This means that we would consider him to be heavily indebted. Worse still, Parsvnath Developers has seen its EBIT soar to 26% over the past 12 months. If profits continue like this in the long term, there is an unimaginable chance of repaying this debt. There is no doubt that we learn the most about debt from the balance sheet. But you can’t look at debt in total isolation; since Parsvnath Developers will need revenue to repay this debt. So, when considering debt, it is definitely worth looking at the earnings trend. Click here for an interactive preview.

Finally, while the taxman may love accounting profits, lenders only accept cash. We must therefore clearly examine whether this EBIT generates a corresponding free cash flow. Over the past two years, Parsvnath Developers has actually produced more free cash flow than EBIT. This kind of strong cash generation warms our hearts like a puppy in a bumblebee suit.

Our point of view

To be frank, Parsvnath Developers’ EBIT growth rate and track record of keeping total liabilities under control makes us rather uncomfortable with its level of leverage. But on the bright side, its conversion from EBIT to free cash flow is a good sign and makes us more optimistic. Considering all the above factors, it seems that Parsvnath Developers has too much debt. That kind of risk is acceptable to some, but it certainly doesn’t float our boat. The balance sheet is clearly the area to focus on when analyzing debt. But at the end of the day, every business can contain risks that exist outside of the balance sheet. For example Parsvnath Developers has 3 warning signs (and 1 which is significant) that we think you should know about.

Of course, if you’re the type of investor who prefers to buy stocks without the burden of debt, then feel free to check out our exclusive list of cash-efficient growth stocks today.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Mastermind posts $626,000 increase in net income for fiscal year September 30, 2021 https://freebassuk.com/mastermind-posts-626000-increase-in-net-income-for-fiscal-year-september-30-2021/ Tue, 15 Feb 2022 19:01:02 +0000 https://freebassuk.com/mastermind-posts-626000-increase-in-net-income-for-fiscal-year-september-30-2021/ Mastermind, Inc. (OTC QB: MMND), a vertically integrated digital marketing company that designs, creates and activates marketing initiatives for global brands, today announced its financial results for the fiscal year 2021, ended 30 September 2021. Dan Dodson, CEO of Mastermind, said, “The uncertainty of the pandemic continues to impact Mastermind’s growth strategy. Customers have remained […]]]>

Mastermind, Inc. (OTC QB: MMND), a vertically integrated digital marketing company that designs, creates and activates marketing initiatives for global brands, today announced its financial results for the fiscal year 2021, ended 30 September 2021.

Dan Dodson, CEO of Mastermind, said, “The uncertainty of the pandemic continues to impact Mastermind’s growth strategy. Customers have remained conservative in their spending and this has put some acquisition talks on hold. Our team has adapted to working remotely and we have innovative marketing initiatives that should be implemented this fiscal year. Our total assets increased by 19.4% to $2.77 million and total liabilities decreased by 34.6% to $748,000. Our net income before income taxes was $766,000 for fiscal 2022, compared to a net loss of $12,000 for fiscal 2021. The cancellation of PPP loans was a significant factor in our results. We paused our acquisition efforts during the year, but expect to resume them in fiscal 2022.”

Fiscal 2021 Highlights

  • Revenue for 2021 was $3,877,721, an increase of 5% over 2020

  • Net income for 2021 was $767,268, an increase of $626,095 over 2020

  • Operating expenses for 2021 were $2,344,601, a 5% decrease from 2020

  • Total equity increased to $2,019,115, an increase of 71.9% over 2020

Detailed financial information can be found in Mastermind’s Annual Report on Form 10-K for the period ended September 30, 2021, as filed with the Securities Exchange Commission on February 14, 2021.

About Mastermind, Inc.

Mastermind, Inc. provides thinking that drives results for leading marketers. He has over 30 years of experience in dozens of industries helping to engage people with leading brands in ways that inspire them to action. Mastermind has a total data-driven approach that drives brand consideration, trial, loyalty and promotion. The company has extensive marketing expertise in the areas of content, digital, influencers, social media, promotion, channel optimization and digital issue management. This allows Mastermind to create and run multidimensional campaigns that drive results. For more information about Mastermind, Inc., please visit: www.MastermindMarketing.com.

Forward-looking statements

This press release from Mastermind, Inc. (the “Company”) contains, or may contain, among other things, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. . These statements may include, without limitation, statements regarding the Company’s plans, goals, projections, expectations and intentions and other statements identified by words such as “plans”, “may”, “will”, “could”, “should”, “believe”, “expect”, “anticipate”, “estimate”, “intend”, “plan”, “potential”, or similar expressions. These statements are based on the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission. Actual results (including, without limitation, market acceptance of the Company’s services; competition from existing products/services or new products/services that may emerge; business model implementation and the Company’s strategic plans for its business and services; estimates of the Company’s future revenues, expenses, capital requirements and financing requirements; and developments relating to the Company’s competitors) may differ materially from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that could change based on a variety of factors (many of which are beyond the control of the Company). The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

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Huntsman Corporation (HUN): a chemical company bounces back https://freebassuk.com/huntsman-corporation-hun-a-chemical-company-bounces-back/ Sat, 12 Feb 2022 06:51:00 +0000 https://freebassuk.com/huntsman-corporation-hun-a-chemical-company-bounces-back/ D3Damon/iStock via Getty Images Based in Woodland, Texas, Huntsman Corporation (NYSE: HUN) is a multinational corporation that manufactures and markets a variety of chemical products for consumer and industrial use. Their specialty lies in manufacturing assorted polyurethanes, adhesives, and even performance products. Their market is robust, serving as the preferred chemical manufacturing company for specialty […]]]>

D3Damon/iStock via Getty Images

Based in Woodland, Texas, Huntsman Corporation (NYSE: HUN) is a multinational corporation that manufactures and markets a variety of chemical products for consumer and industrial use. Their specialty lies in manufacturing assorted polyurethanes, adhesives, and even performance products. Their market is robust, serving as the preferred chemical manufacturing company for specialty products from major companies like BMW, Proctor & Gamble (NYSE: PG) and Chevron (NYSE: CVX). The company is home to more than 70 research and development facilities in 30 countries around the world. Founded in 1970, the company has now reached great heights, becoming the world’s largest white and color pigment company, as well as the fifth largest manufacturer of insulators.

HUN Price Chart

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In this article, I will show that despite a tough 2020, Huntsman has shown signs of positive value lately. The pandemic has been difficult for nearly every business, but Huntsman is showing signs of a rebound year. With the expected rise in the chemicals market in tandem with Huntsman’s improving finances, the company will prove to be a slower, but steady investment.

Huntsman’s Diversified Portfolio Maintains Company Value

The company has a diverse manufacturing portfolio. They have a very versatile list of chemicals they manufacture and their uses vary widely. With the market, partnerships, and pipeline so different for the four, it behooves investors to dissect each category to look for strengths, weaknesses, and overall value. The first category is that of polyurethanes.

Huntsman Product Breakdown

Huntsman Investor Day

Polyurethanes are by far Huntsman’s main manufacturing chemical subtype. These chemicals are used in various items including spray foam insulation. Since insulation is one of the primary products manufactured and sold by Huntsman, it makes sense that the most critical chemical property is manufactured in-house. Polyurethanes produced by Huntsman are also used in automotive seats, which has led to lucrative contracts with other companies like BMW that use chemicals to make seats for their automobiles. These chemicals are also used in other manufacturing, from shoes to adhesives, making them very versatile and lucrative. The manufacture and sale of polyurethanes represents nearly 60% of all Huntsman revenues.

The second major revenue generator for Huntsman Corporation is what is known as “performance products”. These are products made and designed for specific purposes for specific industries. One of the biggest sellers in this category is agricultural chemicals. These are chemicals used in agriculture and cultivation and can include anything from specialty growth chemicals to pesticides – another form of performance chemicals used in oilfield maintenance and production. Oil is a big seller here in the United States, and any chemicals designed to help equipment recover black gold from the ground have market value and longevity. In total, performance products account for 17% of revenue generated by Huntsman products.

Another slightly more ambiguous sales category for Huntsman products is Advanced Materials. Advanced Materials has a wide array of diverse products attributed to its title. Perhaps most notable is the electrical insulation. It is a common construction product and likely to have a large market, and deservedly generates a large number of sales. Another less common but probably more lucrative sales sub-category is aerospace products. Anything that helps airplanes fly or can be used on objects launched into space is usually nuanced and thus creates value. Advanced materials represent 12% of the company’s turnover.

The final sales category of Huntsman’s income is textile effects. It is not uncommon for chemical companies to be associated with textiles. This industry covers everything from sports and formal wear to home furnishings. Clothing is a big seller, so having Huntsman associated in the sales arena with this type of item is once again good for sales and good for longevity. While representing the smallest percentage of revenue from the company’s offerings, textile effects still account for 10% of sales.

Future optimism

Huntsman has made serious progress by investing in a brand new production facility in Conroe, Texas. The plant, which is expected to start generating revenue as early as next year, is designed to manufacture a revolutionary new chemical known as ultra-pure ethylene carbonate. This chemical boosts the operating voltage of the new wave of lithium-ion batteries, which power electric cars. With responsibility for environmental safety and moving away from fossil fuels, this could be a game-changer and a significant investment in the future. Involvement in the lithium-ion battery market for electric vehicles could prove extremely lucrative for Huntsman due to the massive growth expected in the coming years. According to recent projections, the global electric vehicle market size is expected to reach over $154.9 billion by 2028 – translating into a (OTC: CAGR) by 28.1% over a seven-year period beginning in 2021. With the innovations seen in Huntsman’s new ultra-pure ethylene carbonate chemical, it’s not hard to imagine the possible profitability coming year if their new Conroe plant becomes a vital part of the global electricity market. vehicle supply chain.

Financial overview

Huntsman Price vs Earnings

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Huntsman Corp suffered a revenue loss in 2020, marking the third of four years they have seen a decline in revenue. Eventually, however, things could turn around. As supply chain issues begin to resolve and basic demand for chemicals increases, Huntsman recorded its first significant revenue increase since 2018. With reported revenue of $7.8 billion in 2021 , the company appears to be on track to expand its reach into the chemicals business. Marlet.

Huntsman Price vs Net Income

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On the other hand, net profit saw its biggest increase in the past four years in 2020. The company reported net profit of just over $1 billion in 2020, nearly double its 2019 figure of $562,000,000. While it may seem strange at first glance that in a year that has seen its revenues plummet, it has also seen net income generated in record numbers, it is essential to understand precisely how Huntsman Corporation earns a lot of silver. This method comes in practice from buying and selling various other businesses which instead show up on the cash report as income from “other investing activities”. Within this category, Huntsman Corp posted a valuation of $1.7 billion.

Huntsman Debt vs Liabilities

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A company gradually paying down its debt is a sign of a company on the right track, which should make investors a bit more optimistic. Huntsman Corporation holds long-term debt of $1.5 billion, which is quite a large number, but also down significantly from the $2.2 billion of that debt in 2018. Their total liabilities are to just under $5 billion, down significantly from 2017 when Huntsman was saddled with $7.6 billion in debt. The company also holds a $1.5 billion surplus, which will no doubt be used to pay off more of this debt in the future, proving that the current investment has been at least moderately profitable. .

Conclusion

Granted, there’s not much to cheer about Huntsman Corporations past finances. While they have increased their net income and paid off some of their debt, their income has been declining for a few years. Any reason to invest in Huntsman Corporation must be born out of a long-term view. That said, their sudden increase in revenue, combined with their innovative new battery technology and the opening of a manufacturing facility for this battery formula, presents an opportunity for future gains for investors. The future finally appears to be looking up for Huntsman – the company is expected to grow revenue and benefit from cleaner margins on the balance sheet. With the expected increase in the chemical market, Huntsman will prove to be a solid investment. All of these factors should signal to potential investors that there are plenty of opportunities on the horizon to build a long-term position, but the current price may be too high to warrant immediate investment – ​​investors looking to enter may want to wait a decline. or a short-term correction.

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