Finance – Chance For Rosi http://chance-for-rosi.org/ Mon, 23 May 2022 22:18:29 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 http://chance-for-rosi.org/wp-content/uploads/2021/05/chance-for-rosi-icon-150x150.png Finance – Chance For Rosi http://chance-for-rosi.org/ 32 32 Klarna layoffs signal wider slowdown in buy it now and pay later http://chance-for-rosi.org/klarna-layoffs-signal-wider-slowdown-in-buy-it-now-and-pay-later/ Mon, 23 May 2022 22:18:29 +0000 http://chance-for-rosi.org/klarna-layoffs-signal-wider-slowdown-in-buy-it-now-and-pay-later/
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The mental gymnastics it takes to justify a $400 pair of designer sneakers becomes a mere somersault when it only costs you $100 per paycheck. And no one understood this better than the buy now, pay later (BNPL) startups that exploded in popularity during the pandemic’s e-commerce boom.

Now those same companies are seeing their quick wins plummet. BNPL giant Klarna, Europe’s largest private technology company, mentioned yesterday, he laid off 10% of the company’s approximately 7,000 employees.

It’s a bit like a set aside: BNPL companies Klarna, Affirm, Afterpay and a number of other startups named after quirky verbs offer point-of-sale installment loans for online shoppers. Last year, American consumers spent more than $20 billion through these services, just over 2% of the $870 billion they spent on online purchases in total. And Klarna, the leader in helping you pay for your ASOS transport, boosted its valuation from $11 billion in September 2020 to $46 billion last June.

Slowdown

Last week, the WSJ reported that Klarna was currently looking to raise funds at a valuation closer to $30 billion, a 30% reduction from its peak valuation. The company’s job postings also fell sharply from March 24.

Why the slowdown? Online shopping in general has been a drag: the number of e-commerce transactions has decreased by 1.8% a year ago, according to a Mastercard SpendingPulse report released earlier this month.

Additionally, as investors seek companies with positive cash flow ahead of a potential economic downturn, BNPL startups are racking up heavy losses.

  • Klarna lost $700 million in 2021 (65% of which came from credit defaults).
  • Affirm’s net losses widened to $430.9 million in fiscal 2021 from $112.6 million in fiscal 2020.
  • Afterpay, which was acquired by Square (now Block) last year, posted losses of $345.5 million for 2021.

Big Picture: Blame the BNPL outage on a perfect storm. Numerous US and UK agencies have launched investigations into potentially predatory corporate lending practices. In December, the US Consumer Financial Protection Bureau said it was reviewing BNPLs, citing concerns about consumer debt accumulating.MM

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First Commonwealth Financial Co. (NYSE:FCF) expected to post quarterly sales of $97.26 million http://chance-for-rosi.org/first-commonwealth-financial-co-nysefcf-expected-to-post-quarterly-sales-of-97-26-million/ Sat, 21 May 2022 16:57:21 +0000 http://chance-for-rosi.org/first-commonwealth-financial-co-nysefcf-expected-to-post-quarterly-sales-of-97-26-million/

Analysts expect First Commonwealth Financial Co. (NYSE:FCF – Get a rating) to post $97.26 million in sales for the current fiscal quarter, according to Zacks. Four analysts made earnings estimates for First Commonwealth Financial. The highest sales estimate is $98.06 million and the lowest is $96.57 million. First Commonwealth Financial recorded sales of $94.29 million in the same quarter last year, suggesting a positive year-on-year growth rate of 3.1%. The company is due to release its next quarterly earnings report on Monday, January 1.

According to Zacks, analysts expect First Commonwealth Financial to report annual revenue of $393.82 million for the current fiscal year, with estimates ranging from $389.21 million to $400.57. millions of dollars. For the next fiscal year, analysts expect the company to record sales of $426.85 million, with estimates ranging from $417.00 to $443.96 million. Zacks sales averages are an average average based on a survey of sell-side analysts who follow First Commonwealth Financial.

First Commonwealth Financial (NYSE: FCF – Get a rating) last announced its quarterly results on Tuesday, April 26. The bank reported earnings per share (EPS) of $0.29 for the quarter, missing the consensus estimate of $0.30 per ($0.01). The company posted revenue of $92.15 million for the quarter, versus analyst estimates of $93.91 million. First Commonwealth Financial had a return on equity of 11.51% and a net margin of 32.00%. The company’s quarterly revenue was down 4.8% year over year. In the same quarter last year, the company posted earnings per share of $0.41.

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Several analysts have recently weighed in on FCF shares. StockNews.com began covering shares of First Commonwealth Financial in a research note on Thursday, March 31. They issued a “hold” rating on the stock. DA Davidson reissued a “buy” rating on First Commonwealth Financial shares in a research note on Thursday, January 27. Finally, B. Riley cut his price target on First Commonwealth Financial shares from $19.00 to $18.00 in a Tuesday, April 12 research note. Three research analysts gave the stock a hold rating and four gave the company a buy rating. According to data from MarketBeat, First Commonwealth Financial currently has a consensus rating of “Buy” and a consensus target price of $18.33.

Shares of First Commonwealth Financial opened at $13.29 on Friday. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt ratio of 0.17. First Commonwealth Financial has a 12-month low of $12.36 and a 12-month high of $17.63. The stock has a market capitalization of $1.25 billion, a price-earnings ratio of 9.99 and a beta of 1.04. The company’s fifty-day moving average is $14.53 and its 200-day moving average is $15.53.

The company also recently declared a quarterly dividend, which was paid on Friday, May 20. Shareholders of record on Friday, May 6 received a dividend of $0.12 per share. The ex-dividend date was Thursday, May 5. This represents a dividend of $0.48 on an annualized basis and a yield of 3.61%. This is a boost from First Commonwealth Financial’s previous quarterly dividend of $0.12. First Commonwealth Financial’s dividend payout ratio is 36.09%.

Several hedge funds have recently increased or reduced their stakes in the company. BlackRock Inc. increased its position in shares of First Commonwealth Financial by 1.3% during the first quarter. BlackRock Inc. now owns 13,993,881 shares of the bank worth $212,147,000 after buying an additional 180,138 shares last quarter. State Street Corp increased its position in shares of First Commonwealth Financial by 12.8% in the 1st quarter. State Street Corp now owns 4,611,897 shares of the bank worth $69,916,000 after buying an additional 524,228 shares last quarter. Charles Schwab Investment Management Inc. increased its position in First Commonwealth Financial shares by 1.5% during the first quarter. Charles Schwab Investment Management Inc. now owns 1,977,742 shares of the bank worth $29,983,000 after buying 28,366 additional shares last quarter. Geode Capital Management LLC increased its position in First Commonwealth Financial shares by 0.3% during the third quarter. Geode Capital Management LLC now owns 1,655,003 shares of the bank worth $22,557,000 after buying 4,486 additional shares in the last quarter. Finally, Northern Trust Corp increased its position in shares of First Commonwealth Financial by 0.9% during the 4th quarter. Northern Trust Corp now owns 1,482,950 shares of the bank worth $23,860,000 after buying 13,166 more shares last quarter. 68.56% of the shares are currently held by institutional investors.

Profile of the Commonwealth’s First Financial Corporation (Get a rating)

First Commonwealth Financial Corporation, a financial holding company, provides various retail and corporate banking services in the United States. Its consumer services include personal checking accounts, interest-bearing checking accounts, savings and health savings accounts, insured money market accounts, debit cards, investment certificates, interest rate certificates of deposit fixed and variable loans, mortgages, secured and unsecured installment loans, construction and home loans, safe deposit boxes, credit cards, lines of credit with overdraft protection, IRA accounts and automated teller machine (ATM) services ), as well as internet, mobile and telephone banking.

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Earnings history and estimates for First Commonwealth Financial (NYSE:FCF)

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]]> The Skanner News – Expensive auto repairs are sinking consumers into a money pit http://chance-for-rosi.org/the-skanner-news-expensive-auto-repairs-are-sinking-consumers-into-a-money-pit/ Thu, 19 May 2022 19:19:34 +0000 http://chance-for-rosi.org/the-skanner-news-expensive-auto-repairs-are-sinking-consumers-into-a-money-pit/

New research reveals how costly auto repairs are turning into a new form of predatory lending. And just like other forms of financial abuse, consumers feel duped and deceived about the associated costs and the time it takes to pay these bills.

Written by Stop the debt trapa multi-member consumer coalition, the report details how national auto repair brands like AAMCO, Big O Tires, Grease Monkey, JiffyLube, Meineke, Midas and Precision Tune Auto Care, are driving people to a predatory lender who engages in a variety of questionable practices and charges up to 189% interest – even in states where triple-digit interest is illegal.

“A car repair can be a devastating expense, and financially fragile families don’t need predatory lenders to magnify the damage,” said Elyse Hicks, consumer policy adviser at Americans for Financial Reform, a member organization of Stop the Debt Trap.

“For most people, having a well-driving car is essential to their day-to-day economic life and to running a family.”

Transportation Alliance Bank (TAB), one of the few rogue banks that lend their charters to help unscrupulous businesses evade state consumer loan laws, is the focus of the research report. The report details how TAB works with its financial partner, EasyPay Finance, a subsidiary of Duvera Billing Services. Even in states that don’t allow triple-digit interest rates, this financial alliance provides high-cost loans through stores nationwide, including auto mechanics and furniture. In other states, EasyPay extends credit directly in its own name, often in the form of retail installment.

The EasyPay Finance website recognizes its loans through TAB Bank in several states, many of which also have large consumers of color: Alabama, Arkansas, District of Columbia, Florida, Georgia, Illinois, Indiana, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, New York, North Carolina, Ohio, South Carolina, Tennessee and Texas. In these and other states, EasyPay may operate under either the state’s Loans Act or its Retail Installment Loans Act.

As a result, hundreds of complaints from across the country have been filed with the Better Business Bureau, the Consumer Financial Protection Bureau (CFPB), and Ripoff Reports.

In one of the most egregious consumer complaints in the reportone consumer claimed that a $1,500 repair bill had exploded into a debt of over $7,000 and was now listed as an overdue item on a credit report:

“Duvera Financial has reported my account as delinquent every month, although this account is in collection. I have previously complained about predatory lending practices such as excessive calling and being harassed about a debt that I did not accept.The interest rate and ongoing charges were not explained to me properly and I think this lender should be out of business.

“The $1,500.00 bill has ballooned to over $7,000.00.

“In this climate, these charges are ridiculous. Also, the account is flagged as open and overdue, which is incorrect. Please remove this account from my credit file.”

Another CFPB complaint came from a Chicago military service member who has already paid a total of $2,300 in 23 payments on a $1,500 loan. Even so, he still owes $1,300, due to his 151% stake.

Consumer Complaints

Other consumer complaints identified other auto repair financing issues:

  • Credit applications taken over the phone or to be completed on smart phones, without written copies for consumers;
  • Misleading promises of full interest refunds if paid within 90 days, with many barriers preventing consumers from avoiding interest or knowing their refund balance;
  • Unauthorized electronic debits that were different from the agreed payment or that continued after execution of a payment plan; and
  • Rude and unnecessary customer service and/or administrative errors that result in missed payments, fees, and loss of the interest-free option.

Consumer advice

Along with the release of the Stop the Debt Trap report, the National Consumer Law Center released a alert summarizing the growing problem and offer consumers specific advice to protect themselves:

  1. Avoid any loan charging more than 36% annual percentage rate of charge (APR).
  2. You can also consider using a credit card. Credit cards provide protection if you have a problem with a purchase, and getting a low-rate loan can be better than an interest-free offer from the auto repair shop that never materializes.
  3. Always check the terms of a loan before signing or clicking, especially the interest rate, APR and any details of a promotional offer.
  4. Always get a copy of any signed agreement. Make sure it is consistent with your understanding.

“Auto repair shops should stop driving their customers into a money pit,” said Rochelle Sparko, North Carolina policy director at the Center for Responsible Lending, a member of the Stop the Debt Trap coalition. “The FDIC should stop TAB Bank and the other banks they oversee from sponsoring this exploitation scheme,” she concluded.

Charlene Crowell is a senior researcher at the Center for Responsible Lending.

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Carvana prepares $615.5 million in ABS notes on fixed-rate installment loans to buy cars http://chance-for-rosi.org/carvana-prepares-615-5-million-in-abs-notes-on-fixed-rate-installment-loans-to-buy-cars/ Tue, 17 May 2022 02:22:00 +0000 http://chance-for-rosi.org/carvana-prepares-615-5-million-in-abs-notes-on-fixed-rate-installment-loans-to-buy-cars/

Online used car dealership Carvana is sponsoring a $615.5 million asset-backed securities deal, for its latest asset-backed security (ABS) this year, in a deal that will includes an initial credit enhancement of 9.5% on “AAA” rated notes.

Carvana Auto Receivables Trust 2022-P2 has an $82 million tranche that KBRA rated “K1+” with an initial credit enhancement of 9.50%; two tranches of $185.500 million rated “AAA” with an initial credit enhancement of 9.5%; a $97.550 million tranche rated “AAA” with an initial credit enhancement of 9.50%; an $18.450 million tranche rated “AA+” with an initial credit enhancement of 6.45%; a $17.550 million tranche rated “A+” with an initial credit enhancement of 3.55%; $18.450 million

tranche with a “BBB+” rating and an initial credit enhancement of 0.50%; and a tranche of $10.587 million rated “BBB-” and an initial credit enhancement of 0.30%.

Carvana’s 17th overall ABS is set to close on May 25.

CRVNA 2022-P2’s pool balance is much lower than its more recent predecessors, which issued around $1.0 billion, KBRA noted.

Founded in 2012, Carvana, an e-commerce platform, operates in 315 markets. Users can buy, finance, trade and have cars delivered through the company. The Tempe, Arizona-based company’s latest ABS is secured by $605 million in auto loans. Fixed-rate installment loans are for people with a “non-zero weighted average FICO score of 704,” the report said.

The average principal balance is $24,150 with a weighted average initial term and remaining term of 71 and 70 months, respectively, KBRA said. Net proceeds from the issuance of the tickets will be used for general operations, according to the report.

Bridgecrest Credit Company, a subsidiary of DriveTime, is the repairer; Computershare Trust Company, NA is the custodian and paying agent. BNY Mellon Trust of Delaware is the proprietary trustee and Vervent Inc. is the standby servicer.

Despite its national profile as an innovative car salesman, Carvana began generating significant volumes of loans to be on the KBRA’s radar in 2016, according to the report.

KBRA counted several aspects of Carvana’s business as negative, citing its lack of strong historical performance data as one. Additionally, the company is focused on growth, causing it to suffer operating losses — a net loss of $287 million for fiscal 2021 — and negative cash flow since inception, KBRA said.

However, not all aspects of Carvana’s business are of concern. Its integrated business model allows it to more tightly control fixed overhead compared to traditional retailers, according to the report.

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$54.15 million in sales expected for Washington Trust Bancorp, Inc. (NASDAQ:WASH) this quarter http://chance-for-rosi.org/54-15-million-in-sales-expected-for-washington-trust-bancorp-inc-nasdaqwash-this-quarter/ Sun, 15 May 2022 07:52:30 +0000 http://chance-for-rosi.org/54-15-million-in-sales-expected-for-washington-trust-bancorp-inc-nasdaqwash-this-quarter/

Analysts predict that Washington Trust Bancorp, Inc. (NASDAQ:WASH – Get a rating) will report sales of $54.15 million for the current fiscal quarter, according to Zacks. Two analysts provided earnings estimates for Washington Trust Bancorp, with the lowest sales estimate of $53.40 million and the highest estimate of $54.90 million. Washington Trust Bancorp posted sales of $55.35 million in the same quarter last year, which would indicate a negative growth rate of 2.2% year over year. The company is expected to release its next quarterly earnings report on Monday, January 1.

According to Zacks, analysts expect Washington Trust Bancorp to report annual sales of $220.60 million for the current year, with estimates ranging from $217.60 million to $223.60 million. . For the next fiscal year, analysts expect the company to record sales of $242.40 million, with estimates ranging from $240.90 to $243.90 million. Zacks sales averages are an average average based on a survey of sell-side research firms that provide coverage for Washington Trust Bancorp.

Washington Trust Bancorp (NASDAQ: WASH – Get a rating) last released its results on Monday, April 25. The financial services provider reported earnings per share (EPS) of $0.94 for the quarter, beating the consensus estimate of $0.92 by $0.02. Washington Trust Bancorp had a return on equity of 13.35% and a net margin of 30.69%. In the same quarter of the previous year, the company had earned earnings per share of $1.17.

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Several equity analysts have recently published reports on WASH actions. StockNews.com began covering Washington Trust Bancorp in a report on Thursday, March 31. They issued a “hold” rating for the company. Piper Sandler downgraded Washington Trust Bancorp from an “overweight” rating to a “neutral” rating and set a price target of $56.00 for the company. in a research report on Thursday, April 7.

A number of institutional investors have recently changed their positions in the stock. Norges Bank acquired a new position in Washington Trust Bancorp in Q4 at a value of $8,131,000. Victory Capital Management Inc. increased its stake in Washington Trust Bancorp by 49.9% during the first quarter. Victory Capital Management Inc. now owns 253,124 shares of the financial services provider worth $12,033,000 after acquiring an additional 84,225 shares during the period. Vanguard Group Inc. increased its stake in Washington Trust Bancorp by 4.0% during the first quarter. Vanguard Group Inc. now owns 958,238 shares of the financial services provider worth $50,306,000 after acquiring an additional 37,258 shares during the period. VELA Investment Management LLC acquired a new stake in Washington Trust Bancorp during the fourth quarter worth approximately $1,819,000. Finally, BlackRock Inc. increased its position in Washington Trust Bancorp by 2.0% in the 4th quarter. BlackRock Inc. now owns 1,540,201 shares of the financial services provider worth $86,820,000 after buying an additional 29,642 shares in the last quarter. 77.37% of the shares are held by hedge funds and other institutional investors.

WASH opened at $46.92 on Friday. Washington Trust Bancorp has a 12-month low of $46.35 and a 12-month high of $60.96. The stock has a fifty-day moving average price of $50.70 and a 200-day moving average price of $54.43. The company has a current ratio of 0.88, a quick ratio of 0.87 and a debt ratio of 0.15. The company has a market capitalization of $814.06 million, a price-earnings ratio of 11.28 and a beta of 0.76.

The company also recently disclosed a quarterly dividend, which was paid on Friday, April 8. Shareholders of record on Friday, April 1 received a dividend of $0.54 per share. The ex-dividend date was Thursday, March 31. This represents an annualized dividend of $2.16 and a dividend yield of 4.60%. Washington Trust Bancorp’s dividend payout ratio is currently 51.92%.

Washington Trust Bancorp Company Profile (Get a rating)

Washington Trust Bancorp, Inc. operates as a bank holding company for The Washington Trust Company, of Westerly, which provides various banking and financial services to individuals and businesses. The Company operates in two segments, commercial banking services and wealth management services. The Commercial Banking segment offers various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages and construction loans; commercial and industrial loans; residential real estate loans which consist of homeowner mortgages and construction loans; and consumer loans including home equity loans and lines of credit, personal installment loans and personal loans secured by general aviation aircraft.

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]]> BANKGUAM HOLDING CO Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) http://chance-for-rosi.org/bankguam-holding-co-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Thu, 12 May 2022 10:15:09 +0000 http://chance-for-rosi.org/bankguam-holding-co-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/

The following discussion provides information about the results of operations,
financial condition, liquidity, and capital resources of the Company and its
wholly-owned subsidiaries, the Bank and BGIS. This information is intended to
facilitate the understanding and assessment of significant changes and trends
related to our financial condition and the results of operations. This
discussion and analysis should be read in conjunction with our condensed
consolidated financial statements and the accompanying notes presented elsewhere
in this Quarterly Report.

Overview

BankGuam Holding Company (the "Company") is a Guam corporation organized on
October 29, 2010, to act as a holding company of Bank of Guam (the "Bank"), a
17-branch bank serving the communities in Guam, the Commonwealth of the Northern
Mariana Islands ("CNMI"), the Federated States of Micronesia ("FSM"), the
Republic of the Marshall Islands ("RMI"), the Republic of Palau ("ROP"), and San
Francisco, California. On August 15, 2011, the Company acquired all of the
outstanding common stock of the Bank in a holding company formation transaction.

In August 2015, the Company chartered a second subsidiary, BankGuam Investment
Services ("BGIS"), in an effort to enhance the options and opportunities of our
customers to build future income and wealth. BGIS is a registered investment
company, primarily involved in providing investment advisory services and
trading securities for its customers.

In May 2016, the Company entered into a Stock Purchase Agreement (the
"Agreement") to acquire up to 70% of ASC Trust LLC, formerly ASC Trust
Corporation, a Guam trust company. In July 2016, subsequent to the approval of
the Federal Reserve Bank of San Francisco in June 2016, the first purchase of
25% of ASC Trust LLC was completed. In July 2019, the Company completed the
second purchase of an additional 20% of ASC Trust LLC, bringing its ownership to
45%. As stated in Note 4 - Investment Securities, and with the approval of the
Federal Reserve Bank of San Francisco, an additional 25% of ASC Trust LLC was
purchased by the Company in July 2021. This transaction brought the Company's
ownership of ASC Trust LLC to 70%, and completes the transactions contemplated
by the Agreement. The Company evaluated its ownership in ASC Trust LLC after the
last transaction in accordance to ASC 810 - Consolidation, and determined that
the Company has control over ASC Trust LLC requiring consolidation. ASC Trust
LLC is primarily involved in administering 401(k) retirement plans and other
employee benefit programs for its customers.

Other than holding the shares of the Bank, BGIS and ASC Trust LLC, the Company
conducts no significant activities, although it is authorized, with the prior
approval of its principal regulator, the Board of Governors of the Federal
Reserve System, to engage in a variety of activities related to the business of
banking. Currently, substantially all of the Company's operations are conducted
and substantially all of its assets are owned by the Bank, which accounts for
substantially all of our consolidated revenues, expenses and operating income.
The Bank's headquarters is located in Hagåtña, Guam, and the Bank provides a
variety of financial services to individuals, businesses and government entities
through its branch network. The Bank's primary deposit products are demand
deposits, savings and time certificates of deposit, and its primary lending
products are consumer, commercial and real estate loans. The Bank also provides
many other financial services to its customers. In 2021, the Bank permanently
closed the Dededo, Harmon and Chalan Piao branches. The Bank has been adding
digital channels to its product delivery system for several years. The COVID-19
pandemic accelerated the adoption of those digital channels by our customers,
which was considered in our decision to close those branches.

The COVID-19 pandemic and resulting government responses have impacted our operations in 2021 and 2022. See “Note 2 – Summary of significant accounting policies – COVID-19” for further details.

                                       32
--------------------------------------------------------------------------------

Summary of operating results


The following table provides unaudited comparative information with respect to
our results of operations for the three months ended March 31, 2022 and 2021,
respectively:

                                       Three Months Ended March 31,
                                      2022            2021          %
                                     Amount          Amount      Change
Interest income                    $   20,989       $ 20,513         2.3 %
Interest expense                          508            353        43.9 %
Net interest income, before
  provision for loan losses            20,481         20,160         1.6 %
Provision for loan losses               1,425          2,475       -42.4 %
Net interest income, after
  provision for loan losses            19,056         17,685         7.8 %
Non-interest income                     7,393          4,209        75.6 %
Non-interest expense                   22,120         17,870        23.8 %
Income before income taxes              4,329          4,024         7.6 %
Income tax expense                        815            729        11.8 %
Net income                         $    3,514       $  3,295         6.6 %

Earnings per common share (EPS):
Basic and diluted EPS              $     0.32       $   0.33



As the above table indicates, our net income increased in the three months ended
March 31, 2022, as compared to the corresponding periods in 2021. In the three
months ended March 31, 2022, we recorded net income after taxes of $3.5 million,
an increase of $219 thousand (or 6.7%) as compared to the same period in 2021.
The primary reasons for the increase were the $3.2 million increase in
non-interest income, a $1.1 million decrease in provision for loan losses, and a
$321 thousand increase in net interest income, partially offset by the $4.3
million increase in non-interest expense, and an $86 thousand increase in income
tax expense. The increase in non-interest income is largely due the $3.8 million
increase in service charges and fees, primarily due to the fee income from ASC
Trust LLC, and the $303 thousand increase in merchant and cardholder net income,
partially offset by the $564 thousand decrease in other income and $262 thousand
decrease in gain on sale of investment securities. The increase in non-interest
expense is due to the increase of $2.4 million in equipment and depreciation and
the $1.8 million additional expenses related to ASC Trust LLC.

The following table shows the decrease in our net interest margin in the three
months ended March 31, 2022, and it also indicates the impact that the increase
in our net income had on our annualized returns on average assets and average
equity. Our return on average equity decreased by 6.08% during the three months
ended March 31, 2022, as compared to the corresponding period in 2021, and our
return on average assets decreased by 3 basis points during the same comparative
period, primarily due to the increase in average assets:

                               Three Months Ended March 31,
                                2022                   2021
Net interest margin                  3.11 %                 3.48 %
Return on average assets             0.51 %                 0.54 %
Return on average equity             7.91 %                 7.68 %



Critical Accounting Policies

The Company's significant accounting policies are set forth in Note 2 in the
Notes to the Company's Annual Report on Form 10-K for 2021 filed with the SEC on
March 28, 2022, and Note 2 of Item 1 in this report. Our unaudited condensed
consolidated financial statements are prepared in accordance with generally
accepted accounting principles in the United States of America ("GAAP") and
general practices in the banking industry. Certain of those accounting policies
are considered critical accounting policies because they require us to make
assumptions and judgments regarding circumstances or trends that could affect
the carrying values of our material assets, such as assumptions regarding
economic conditions or trends that could impact our ability to fully collect our
outstanding loans or ultimately realize the carrying values of certain of our
other assets, such as securities that are available for sale. If adverse changes
were to occur in the events, trends or other circumstances on which our
assumptions or judgments have been based, or other unanticipated events were to
happen that might affect our operating results, it could become necessary under
GAAP for us to reduce the carrying values of the affected assets in our
condensed consolidated statements of financial condition. In addition, because
reductions in the carrying values of assets are sometimes effectuated by or
require charges to income, such reductions also may have the effect of reducing
our income.


                                       33
--------------------------------------------------------------------------------

Operating results

Net interest income


Net interest income, the primary component of the Bank's income, refers to the
difference between the interest earned on loans, investment securities and other
interest-earning assets, and the interest paid on deposits and other borrowed
funds. Our interest income and interest expense are affected by a number of
factors, some of which are outside of our control, including national and local
economic conditions, the monetary policies of the Federal Reserve's Open Market
Committee which affect interest rates, competition in the marketplace for loans
and deposits, the demand for loans and the ability of borrowers to meet their
payment obligations. Net interest income, when expressed as a percentage of
average earning assets, is a banking organization's "net interest margin."

The following table sets forth our interest income, interest expense and net
interest income, and our annualized net interest margin for the three months
ended March 31, 2022 and 2021, respectively:

                          Three Months Ended March 31,
                                                       %
                         2022            2021       Change
Interest income           20,989       $ 20,513        2.32 %
Interest expense             508            353       43.91 %
Net interest income       20,481       $ 20,160        1.59 %

Net interest margin         3.11 %         3.48 %     -0.37 %


Net interest income increased by 1.59% for the quarter ended March 31, 2022 compared to the corresponding period in 2021.


For the three months ended March 31, 2022, net interest income increased by $321
thousand  as compared to the same period in 2021. Total interest income
increased by $476 thousand due to increases of $976 thousand in earnings on
investment securities and $112 thousand from short term investments, partially
offset by $612 thousand in interest income from loans during the three months
ended March 31, 2022, compared to the previous year. The decrease in interest
income from loans is largely due to the 150 basis points (1.50%) cut in the
federal funds rate in March 2020. The reduction in our net interest margin was
the result of a decrease of 0.35% in the yield on our average earning assets in
the three months ended March 31, 2022, as compared to the corresponding period
of 2021, the effect of which was partially offset by an increase in our average
earning assets of 13.6% compared to the same comparative period.

On March 3, 2020, the Federal Open Market Committee (FOMC) reduced the target
range for federal funds by 50 basis points to 1.00% - 1.25%. This rate was
further reduced to a target range of 0% - 0.25% on March 16, 2020. The economy
has since improved, and the FOMC increased the target range by 25bps to 0.25% -
0.50% on March 16, 2022, and 50bps to 0.75% - 1.00% on May 4, 2022. The increase
in interest rates will have a positive impact to the Company's net interest
income as loans and securities reprice.

                                       34

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Average balances

Distribution, rate and yield


The following table sets forth information regarding our average balance sheet,
annualized yields on interest-earning assets and interest rates on
interest-bearing liabilities, the interest rate spread and the interest rate
margin for the three months ended March 31, 2022 and 2021:

                                                               Three Months Ended March 31,
                                                  2022                                              2021
                                Average         Interest          Average         Average         Interest          Average
                                Balance        Earned/Paid      Yield/Rate        Balance        Earned/Paid      Yield/Rate
Interest earning assets:
Short term investments1       $   461,217     $         179            0.16 %   $   333,876     $          67            0.08 %
Investment Securities²            850,497             3,175            1.49 %       557,885             2,199            1.58 %
Loans³                          1,319,790            17,635            5.34 %     1,424,496            18,247            5.12 %
Total earning assets            2,631,504            20,989            3.19 %     2,316,257            20,513            3.54 %
Noninterest earning assets        149,540                                           133,015
Total assets                  $ 2,781,044                                       $ 2,449,272
Interest-bearing
liabilities:
Interest-bearing checking
accounts                      $   401,473     $          10            0.01 %   $   320,382     $          24            0.03 %
Savings accounts                1,192,714                29            0.01 %     1,080,395                79            0.03 %
Certificates of deposit            28,991                 4            0.06 %        28,861                12            0.17 %
Subordinated debt                  34,411               465            5.41 %        14,781               238            6.44 %
Total interest-bearing
liabilities                     1,657,589               508            0.12 %     1,444,419               353            0.10 %
Non-interest bearing
liabilities                       945,715                                           833,203
Total liabilities               2,603,304                                         2,277,622
Stockholders' equity              177,740                                           171,650
Total liabilities and
  stockholders' equity        $ 2,781,044                                       $ 2,449,272

Net interest income                           $      20,481                                     $      20,160

Interest rate spread                                                   3.07 %                                            3.44 %
Net interest margin                                                    3.11 %                                            3.48 %


1 Short-term investments consist of interest-bearing deposits that we maintain

      with other financial institutions.


   2  Includes all investment securities in the Available-for-Sale and the
      Held-to-Maturity classifications. The Bank did not own any tax exempt
      securities during 2022 and 2021.

3 Loans include the average outstanding loan balance. Interest income on loans

includes loan fees $537,000 and $1.2 million within three months

finished March 31, 2022and 2021, respectively.



For the three months ended March 31, 2022, our total average earning assets
increased by $315.2 million, as compared to the same period in 2021. The
increase during the three months ended March 31, 2022, compared to the same
period in 2021, is attributed to the $127.3 million increase in our average
short term investments and a $292.6 million increase in our average investment
securities, partially offset by a $104.7 million decrease in our average loan
portfolio. Average noninterest earning assets increased by $16.5 million. In the
three months ended March 31, 2022, average total interest-bearing liabilities
increased by $213.2 million in comparison to the same period in 2021. In the
three months ended March 31, 2022, the increase was comprised of the $112.3
million increase in average savings accounts, an $81.1 million increase in
average interest-bearing checking accounts, a $19.6 million increase in
subordinated debt, and a $130 thousand increase in average certificate of
deposit accounts. The overall increase in average interest-bearing liabilities
resulted from an increase in our deposit base, primarily in consumer savings,
and government checking and savings accounts as result of the funds received by
depositors from the CARES Act. This was supplemented by an increase of $112.5
million in average non-interest bearing liabilities during the three months
ended March 31, 2022, compared to the same period in 2021, primarily in
traditional checking accounts, moderated an overall increase of $325.7 million
in average total liabilities. During the three months ended March 31, 2022,
average stockholders' equity increased by $6.1 million (3.6%)  in comparison to
the year-earlier period.

Our interest rate spread decreased by 37 basis points (10.94%), and our net
interest margin also decreased by 37 basis points (10.58%) in the three months
ended March 31, 2022, as compared to the same period in 2021. During the three
months ended March 31, 2022, the decrease in our interest rate spread is
attributed to the 35 basis points (9.9%) decrease in the average yield on our
interest earning assets, from 3.54% to 3.19%, and the increase in the average
rate on our interest-bearing liabilities by 2 basis points from 0.10% to 0.12%.
The decrease in our interest income is primarily due to the 150 basis point
(1.50%) rate cut in March 2020 by the Federal Open Market Committee. This
impacted our loan portfolio, investment securities, and short term deposits in
other banks, including the Federal Reserve Bank of San Francisco.


                                       35
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The following table provides information regarding the changes in interest
income and interest expense, attributable to changes in rates and changes in
volumes, that contributed to the total change in net interest income for the
three months ended March 31, 2022, in comparison to the three months ended
March 31, 2021:

                                                        Three Months Ended March 31, 2022 vs. 2021
                                                                      (In thousands)
                                                  Net Change in                  Attributable to:
                                                    Interest              Change in            Change in
                                                 Income/Expense             Rate                Volume
Interest income:
Short term investments                          $             112       $         250       $          (138 )
Investment securities                                         976                (465 )               1,441
Loans                                                        (612 )             3,148                (3,760 )
Total interest income                                         476               2,933                (2,457 )

Interest expense:
Interest-bearing checking accounts                            (14 )               (64 )                  50
Savings accounts                                              (50 )              (211 )                 161
Certificates of deposit                                        (8 )               (32 )                  24
Other borrowings                                              227                (153 )                 380
Total interest expense                                        155                (460 )                 615

Net interest income                             $             321       $       3,393       $        (3,072 )




Provision for Loan Losses

We maintain allowances for probable loan losses that are incurred as a normal
part of the banking business. As more fully discussed in Note 5 of the notes to
the unaudited condensed consolidated financial statements in Item 1 of this
Quarterly Report on Form 10-Q, an allowance for loan losses has been established
by management in order to provide for those loans which, for a variety of
reasons, may not be repaid in their entirety. The allowance is maintained at a
level considered by management to be adequate to provide for probable losses
that are accrued as of the balance sheet date and based on methodologies applied
on a consistent basis with the prior year. Management's review of the adequacy
of the allowance includes, among other things, loan growth, changes in the
composition of the loan portfolio, an analysis of past loan loss experience and
management's evaluation of the loan portfolio under current economic conditions.

The allowance for loan losses is based on estimates, and ultimate losses will
vary from current estimates. The Bank recognizes that credit losses will be
experienced and the risk of loss will vary with, among other things: general
economic conditions; the type of loan being made; the credit worthiness of the
borrower over the term of the loan; and, in the case of a collateralized loan,
the quality and valuation of the collateral for such loan. The allowance for
loan losses represents the Bank's best estimate of the allowance necessary to
provide for probable losses in the portfolio as of the balance sheet date.

If management determines that it is necessary to increase the allowance for loan
losses, a provision for loan losses is recorded. For the three months ended
March 31, 2022, the Bank's provision for loan losses was $1.4 million, which was
$1.1 million lower than the corresponding period of 2021.  The decrease is
primarily due to the reduction in the monthly provision for loan losses from
$875 thousand to $475 thousand, which were due to the declining risk in the loan
portfolio resulting from the decrease in net charge offs, the decrease in the
delinquency ratio, and the decrease in non-accrual loans. In the three months
ended March 31, 2022, management adjusted the economic risk factors to
incorporate the current economic conditions, which includes fluctuations in
tourism and unemployment due to the COVID-19 pandemic.

Management believes that the provision recorded was sufficient to offset the
incremental risk of loss inherent in the gross loan portfolio of $1.33 billion
at March 31, 2022, an increase of $3.9 million from December 31, 2021. The
allowance for loan losses at March 31, 2022, was at $35.1 million or 2.65% of
total gross loans outstanding as of the balance sheet date, an increase of $677
thousand from December 31, 2021. We recorded net loan charge-offs of $748
thousand for the three months ended March 31, 2022. See "Analysis of Allowance
for Loan Losses" in the Financial Condition Section of Management's Discussion
and Analysis of Financial Condition and Results of Operations for more detailed
information.

                                       36

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Non-interest income

The table below represents the main components of non-interest income and their variations for the three months ended March 31, 2022 and 2021:

                                                Three Months Ended March 31,
                                         2022        2021       Amount      Percent
                                        Amount      Amount      Change       Change
Non-interest income
Service charges and fees                $ 5,443     $ 1,670     $ 3,773        225.9 %
Gain on sale of investment securities        10         272        (262 )      -96.3 %
Income from merchant services, net          651         648           3          0.5 %
Income from cardholders, net                553         253         300        118.6 %
Trustee fees                                 86         152         (66 )      -43.4 %
Other income                                650       1,214        (564 )      -46.5 %
Total non-interest income               $ 7,393     $ 4,209     $ 3,184         75.6 %



For the three months ended March 31, 2022, non-interest income totaled $7.4
million, which represented an increase of $3.2 million (75.6%) as compared to
the three months ended March 31, 2021. The increase during the three months
ended March 31, 2022, is primarily attributed to the increases in income of $3.8
million from service charges and fees, and $300 thousand in net income from
cardholders, partially offset by a $564 thousand decrease in other income, a
$262 thousand decrease in gain on sale of investment securities, and a $66
thousand reduction from trustee fees. The increase in service charges and fees
is primarily due to the $2.7 million in fees generated by ASC Trust activities
and an increase in the Bank's service charges and fee income of $987 thousand.


Non-interest Expense

The table below represents the main components of non-interest expenses and the variations for the three months ended March 31, 2022 and 2021:

                                             Three Months Ended March 31,
                                      2022         2021       Amount      Percent
                                     Amount       Amount      Change       Change
Non-interest expense:
Salaries and employee benefits      $  9,225     $  8,696     $   529          6.1 %
Occupancy                              2,221        2,129          92          4.3 %
Equipment and depreciation             5,321        2,941       2,380         80.9 %
Insurance                                457          489         (32 )       -6.5 %
Telecommunications                       450          366          84         23.0 %
FDIC insurance assessment                322          344         (22 )       -6.4 %
Professional services                    803          565         238         42.1 %
Contract services                        448          621        (173 )      -27.9 %
Other real estate owned                   13           14          (1 )       -7.1 %
Stationery and supplies                  169          121          48         39.7 %
Training and education                   260           44         216        490.9 %
General, administrative and other      2,431        1,540         891         57.9 %
Total non-interest expense          $ 22,120     $ 17,870     $ 4,250         23.8 %



For the three months ended March 31, 2022, non-interest expense totaled $22.1
million, which was an increase of $4.3 million (23.8%) as compared to the same
period in 2021. The increase is attributed to the increases of $2.4 million in
equipment and depreciation, $529 thousand in salaries and employee benefits,
$238 thousand in professional services, $216 thousand in training and education,
and $891 thousand in general, administrative and other, partially offset by a
decrease of $173 thousand in contract services.

income tax expense


For the three months ended March 31, 2022, the Bank recorded income tax expenses
of $815 thousand, which was  $86 thousand higher than the income tax expense
recorded for the corresponding period in 2021.

                                       37

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Financial condition

Assets


As of March 31, 2022, total assets were $2.73 billion, a decrease of 2.32% from
the $2.79 billion at December 31, 2021. This $64.7 million decrease was
comprised largely of the $115.4 million decrease in interest bearing deposits in
banks, partially offset by the $36.9 million increase in our net investment
securities portfolio, a $6.4 million increase in cash and due from banks, a $4.0
million increase in other assets, and a rise of $3.5 million in net loans. The
decrease in net loans and the increase in total assets resulted in the
proportion of net loans to total assets decreasing from 46.0% at December 31,
2021, to 47.2% at March 31, 2022. The reduction in assets was associated with
the $38.6 million increase in total deposits, a $3.1 million decrease in other
liabilities, a $25.3 million decrease in accumulated other comprehensive loss,
due to the increase in market rates, partially offset by a $2.2 million increase
in retained earnings.

Interest-Earning Assets

The following table shows the composition of our interest-earning assets as of
March 31, 2022 compared to December 31, 2021:


                                             March 31, 2022       December 31, 2021       Variance
Interest-earning deposits with financial
institutions (including
  restricted cash)                          $        405,487     $           520,893     $ (115,406 )
Federal Home Loan Bank stock, at cost                  3,318                   2,814            504
Investment securities available-for-sale             528,055                 499,366         28,689
Investment securities held-to-maturity               320,481                 312,294          8,187
Loans, gross                                       1,325,223               1,321,321          3,902
Total interest-earning assets               $      2,582,564     $         2,656,688     $  (74,124 )



Loans

Commercial & industrial loans are loans to businesses to finance capital
purchases and improvements, or to provide cash flow for operations. Commercial
mortgage loans include loans secured by real property for purposes such as the
purchase or improvement of that property, wherein repayment is derived from the
income generated by the real property or from business operations. Residential
mortgage loans are loans to consumers to finance the purchase, improvement, or
refinance of real property secured by 1-4 family housing units. Consumer loans
include loans to individuals to finance personal needs and are either closed- or
open-ended loans. Automobile loans fall under the consumer loan category, but
the bulk of consumer loans is typically unsecured extensions of credit such as
credit card debt and personal signature loans.

A summary of the balances of loans at March 31, 2022 and December 31, 2021,
follows:

                                       March 31, 2022             December 31, 2021
                                    Amount        Percent        Amount        Percent
Commercial
Commercial & industrial           $   299,431         22.6 %   $   295,835         22.4 %
Commercial mortgage                   693,172         52.3 %       699,269         52.9 %
Commercial construction                23,546          1.8 %        23,588          1.8 %
Commercial agriculture                    581          0.0 %           592          0.0 %
Total commercial                    1,016,730         76.7 %     1,019,284         77.1 %
Consumer
Residential mortgage                  139,139         10.5 %       135,377         10.2 %
Home equity                             2,211          0.2 %         2,232          0.2 %
Automobile                             17,523          1.3 %        18,220          1.4 %
Other consumer loans1                 149,620         11.3 %       146,208         11.1 %
Total consumer                        308,493         23.3 %       302,037         22.9 %
Gross loans                         1,325,223        100.0 %     1,321,321        100.0 %
Deferred loan (fees) costs, net        (2,968 )                     (3,223 )
Allowance for loan losses             (35,085 )                    (34,408 )
Loans, net                        $ 1,287,170                  $ 1,283,690



  1 Comprised of other revolving credit, installment loans, and overdrafts.


                                       38
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At March 31, 2022, total gross loans increased by $3.9 million, to $1.325
billion, from $1.321 billion at December 31, 2021. The increase in loans was
attributed to a $6.5 million increase in consumer loans to $308.5 million at
March 31, 2022, from $302.0 million at December 31, 2021. The underlying
increase was primarily due to the increases of $3.8 million in residential
mortgage loans, and $3.4 million in other consumer loans, partially offset by
the decrease of $697 thousand in automobile. The increase in consumer loans was
partially offset by the $2.6 million decrease in commercial loans to $1.017
billion at March 31, 2022, from $1.019 billion at December 31, 2021. The
underlying decrease was primarily due to the decrease of $6.1 million in
commercial mortgage loans, partially offset by a $3.6 million increase in
commercial & industrial loans.

In recognition of the potential difficulties that may be faced by our
commercial, real estate and consumer customers due to the COVID-19 pandemic, the
Bank initiated a temporary program in March 2020 under which affected commercial
and consumer customers that may have their loan payments deferred or otherwise
adjusted for a period of up to 90 days. This temporary program ended on June 30,
2020. The Bank continues to process commercial and consumer deferral requests on
a case-by-case basis.

With the passage of the Paycheck Protection Program, administered by the Small
Business Administration, the Bank actively participated in assisting its
customers with applications for resources through the program. PPP loans have
either a two-year or five-year term and earn interest at 1%. The Bank believes
that the majority of these loans will ultimately be forgiven by the SBA in
accordance with the terms of the program. In 2020 and 2021, the Bank approved
and funded over $93.4 million and $56.6 million in PPP loans, respectively. At
March 31, 2022, the outstanding principal balance of PPP loans was at $17.6
million. As of May 5, 2021, a total of $141.3 million in PPP loans have been
forgiven, of which $133.6 million were forgiven in 2021 and $7.7 million in
2020. It is the Bank's understanding that loans funded through the PPP program
are fully guaranteed by the U.S. government. Should those circumstances change,
the Bank could be required to establish an additional allowance for loan loss
through additional credit loss expense charged to earnings.

To March 31, 2022outstanding loans consisted of approximately 69.70% floating rate loans and 30.30% fixed rate loans.


Since it first opened in 1972, the Bank has expanded its operations and its
branch network, first in Guam, then in the other islands of our region and in
San Francisco, California. In the interests of enhancing performance and
stability through market and industry diversification, the Bank has increased
its focus on growth in the San Francisco area in recent years, adding personnel
with experience and expertise in the Bay Area. The following table provides
figures for gross loans in the Bank's administrative regions for March 31, 2022
and December 31, 2021:

                                                   March 31, 2022       December 31, 2021
Guam                                              $        689,717     $           684,435
Commonwealth of the Northern Mariana Islands               135,228          

135 165

The Freely Associated States of Micronesia *                91,071                  89,523
California                                                 409,207                 412,198
Total                                             $      1,325,223     $         1,321,321


* The Freely Associated States (FAS) are made up of the Federated States of

Micronesia (Chuuk, Kosrae, Pohnpei and Yap), the Republic of Marshal

islands and Republic of Palau.



As the table indicates, the Bank's total gross loans increased by 0.3% during
the three months ended March 31, 2022. By way of comparison, loans in Guam
increased by $5.3 million, or 0.8%, during the three months ended March 31,
2022. Loans in the Commonwealth of the Northern Mariana Islands increased by $63
thousand or 0.1%, and the Freely Associated States of Micronesia increased by
$1.5 million, or 1.7%, during the same period. In the California region loans
decreased by $3.0 million, or 0.7%, during the three months ended March 31,
2022.

Remunerated deposits and investment securities


In the current lending and interest rate environment, and in order to maintain
sufficient liquidity in the ordinary course of business, and to account for
disbursement of the funds received from the CARES Act, the Bank held $405.3
million in unrestricted interest-earning deposits with financial institutions at
March 31, 2022, a decrease of $115.4 million, or 22.2%, from the $520.7 million
in such deposits at December 31, 2021. This significant decrease is the result
of the disbursement of various funds received from the CARES Act, which were
held in cash balances with the Federal Reserve Bank at the end of the reporting
period. From December 31, 2021, to March 31, 2022, the Bank's combined
investment portfolio increased by $37.0 million, or 4.6%, from $811.7 million to
$848.7 million. The growth in the investment portfolio was comprised of a $28.9
million increase in available-for-sale securities, which increased by 5.8%, from
$499.4 million to $528.2 million, and an $8.2 million increase in our holdings
of held-to-maturity securities, which increased by 2.6%, from $312.3 million to
$320.5 million. Management believes that the Bank maintains an adequate level of
liquidity.

                                       39

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Non-performing loans and other non-performing assets


Nonperforming loans consist of (i) loans on non-accrual status because we have
ceased accruing interest on these loans; (ii) loans 90 days or more past due and
still accruing interest; and (iii) restructured loans. Other nonperforming
assets consist of real estate properties (OREO) that have been acquired through
foreclosure or similar means and which management intends to offer for sale.
Loans are placed on non-accrual status when, in the opinion of management, the
full and timely collection of principal or interest is in doubt. Generally, the
accrual of interest is discontinued when principal or interest payment becomes
90 days past due, unless the loan is adequately collateralized and the loan is
in the process of collection. When a loan is placed in non-accrual status,
accrued but unpaid interest is reversed against current income. Subsequently,
when payments are received on such loans, the amounts are applied to reduce
principal, except when the ultimate collectability of principal is probable, in
which case accrued loans may be restored to accrual status when principal and
interest becomes current and full repayment is expected. Interest income is
recognized on an accrual basis for impaired loans not meeting the non-accrual
criteria.

The following table contains information on our non-performing assets as well as restructured loans at March 31, 2022 and December 31, 2021:

                                                   March 31, 2022       December 31, 2021
Non-accrual loans:
Commercial & industrial                           $          7,312     $             7,610
Commercial mortgage                                          6,548                   8,148
Residential mortgage                                         1,537                   1,660
Other consumer 1                                               120                     152
Total non-accrual loans                                     15,517                  17,570

Loans past due 90 days and still accruing:
Commercial & industrial                                        125                     106
Commercial mortgage                                            764                       -
Residential mortgage                                            12                      77
Automobile                                                      88                      41
Other consumer1                                              1,078                     866
Total loans past due 90 days and still accruing              2,067                   1,090
Total nonperforming loans                                   17,584                  18,660

Restructured loans:
Accruing loans                                    $         32,500     $            32,595
Non-accruing loans (included in nonaccrual
loans above)                                                 4,778                   6,083
Total restructured loans                          $         37,278     $            38,678



  1 Comprised of other revolving credit, installment loans, and overdrafts.


The above table indicates that nonperforming loans decreased by $1.1 million
during the three months ended March 31, 2022, which resulted from the decrease
in total non-accrual loans by $2.1 million, from $17.6 million to $15.5 million.
The decrease in total non-accrual loans were due to the decreases of $1.6
million in commercial mortgage, $298 thousand in commercial & industrial loans,
and $123 thousand in residential mortgage loans. These decreases were partially
offset by the $977 thousand increase in total loans past due 90 days and still
accruing from $1.1 million to $2.1 million. The increases were $764 thousand in
commercial mortgage loans, $212 thousand in other consumer loans, $47 thousand
in automobile, and $19 thousand in commercial & industrial loans, partially
offset by the decrease of $65 thousand in residential loans.

At March 31, 2022, the Bank's largest nonperforming loans are five commercial
mortgage loans totaling $6.1 million from five relationships of $3.22 million,
$939 thousand, $795 thousand, $642 thousand and $467 thousand, respectively, and
one commercial & industrial loan relationship totaling $6.9 million. These loans
were placed on non-accrual due to deficiencies in the underlying cash flow to
service the monthly loan payments and meet operating expenses. At this time,
management believes that the collateral and the allocated allowance for loan
losses is adequate to cover these loans; however, should property values
deteriorate, additional write-downs or additional provisions may be necessary.

                                       40

————————————————– ——————————

Loan Loss Allowance Analysis

The provision for loan losses has been $35.1 millioni.e. 2.65% of gross outstanding loans, at March 31, 2022compared to $34.4 millioni.e. 2.60% of gross outstanding loans, at December 31, 2021.

Management maintains an allowance for loan losses to absorb estimated credit losses associated with the loan portfolio. The adequacy of the allowance is determined by management through ongoing quarterly loan quality assessments.


Management assesses the estimated credit losses inherent in the non-classified
and classified portions of our loan portfolio by considering a number of factors
or elements including:
  • Management's evaluation of the collectability of the loan portfolio;


  • Historical loss experience in the loan portfolio;

• Levels and trends of delinquencies, classified assets, non-performing and

bad loans;

• Effects of changes in underwriting standards and other changes in lending

policies, procedures and practices;

• Experience, capacity and depth of loan and other management

      staff;


   •  Local, regional, and national trends and conditions, including
      industry-specific conditions;


  • The effect of changes in credit concentration; and

• External factors such as competition, legal and regulatory conditions,

as well as typhoons, pandemics such as COVID-19 and other natural disasters.



Management determines the allowance for the classified loan portfolio and for
non-classified loans by applying a percentage loss estimate that is calculated
based on the above noted factors and trends. Management normally writes down
impaired loans after determining the loan collateral fair value versus the
outstanding loan balance. Our analysis of the adequacy of the allowance
incorporates the provisions made for our non-classified loans and classified
loans.

While management believes it uses the best information available for calculating
the allowance, the results of operation could be significantly affected if
circumstances differ substantially from the assumptions used in determining the
allowance. The current qualitative and quantitative factors used to calculate
the allowance are inherently subjective. The estimates and assumptions are
subject to changes in economic prospects and regulatory guidelines, and other
circumstances over which management has no control. The allowance may prove in
the future to be insufficient to cover all of the losses the Bank may incur and
it may be necessary to increase the allowance from time to time as a result of
monitoring its adequacy.

                                       41

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The following table summarizes the changes in our allowance for loan losses:

                                                            Residential
                                           Commercial        Mortgages       Consumer         Total
                                                             (Dollars in thousands)
Three Months Ended March 31, 2022
Allowance for loan losses:
Balance at beginning of period             $    22,860     $       2,304     $   9,244     $    34,408
Charge-offs                                       (190 )               -        (1,159 )        (1,349 )
Recoveries                                         102                 1           498             601
Provision                                          310               164           951           1,425
Balance at end of period                   $    23,082     $       2,469     $   9,534     $    35,085

Allowance balance at end of period
related to:
Loans individually evaluated for
impairment                                 $     3,508     $          39     $   1,136     $     4,683
Loans collectively evaluated for
impairment                                      19,574             2,430         8,398          30,402
Ending balance                             $    23,082     $       2,469     $   9,534     $    35,085

Loan balances at end of period:
Loans individually evaluated for
impairment                                 $    10,973     $      38,287     $   1,350     $    50,610
Loans collectively evaluated for
impairment                                   1,005,757           103,063       165,793       1,274,613
Ending balance                             $ 1,016,730     $     141,350     $ 167,143     $ 1,325,223

Three Months Ended March 31, 2021
Allowance for loan losses:
Balance at beginning of period             $    21,213     $       1,990     $  11,602     $    34,805
Charge-offs                                        (77 )              (4 )      (1,514 )        (1,595 )
Recoveries                                         124                 -           474             598
Provision                                        1,259               210         1,006           2,475
Ending balance                             $    22,519     $       2,196     $  11,568     $    36,283

Allowance balance at end of period
related to:
Loans individually evaluated for
impairment                                 $     3,502     $           1     $   1,578     $     5,081
Loans collectively evaluated for
impairment                                      19,017             2,195         9,990          31,202
Ending balance                             $    22,519     $       2,196     $  11,568     $    36,283

Loan balances at end of period:
Loans individually evaluated for
impairment                                 $    60,538     $       2,349     $   1,716     $    64,603
Loans collectively evaluated for
impairment                                   1,053,915           127,159       182,930       1,364,004
Ending balance                             $ 1,114,453     $     129,508     $ 184,646     $ 1,428,607

Year Ended December 31, 2021
Allowance for loan losses:
Balance at beginning of year               $    21,213     $       1,990     $  11,602     $    34,805
Charge-offs                                       (115 )             (99 )      (4,736 )        (4,950 )
Recoveries                                         578                 1         1,824           2,403
Provision                                        1,184               412           554           2,150
Ending balance                             $    22,860     $       2,304     $   9,244     $    34,408

Allowance balance at end of year related
to:
Loans individually evaluated for
impairment                                 $     3,510     $          50     $     941     $     4,501
Loans collectively evaluated for
impairment                                      19,350             2,254         8,303          29,907
Ending balance                             $    22,860     $       2,304     $   9,244     $    34,408

Loan balances at end of year:
Loans individually evaluated for
impairment                                 $    48,459     $       2,265     $   1,059     $    51,783
Loans collectively evaluated for
impairment                                     970,825           135,343       163,370       1,269,538
Ending balance                             $ 1,019,284     $     137,608     $ 164,429     $ 1,321,321

Management assesses all impaired loans at least quarterly in conjunction with our calculation and determination of the adequacy of the loan loss allowance.

                                       42
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The Bank has two significant borrowing relationships in bankruptcy totaling
$10.1 million at March 31, 2022. The Bank has calculated a specific reserve
within the allowance for one of the borrowing relationships in bankruptcy in the
amount of $3.5 million. In March 2022, a court ruling increased the availability
of assets for one of the borrowing relationships in bankruptcy to satisfy its
outstanding liabilities. The Bank believes it has sufficient collateral coverage
to protect its current exposure in these matters, however due to the
complexities of the bankruptcy cases and uncertainties surrounding ongoing
negotiations, the ultimate outcomes may result in losses.

Total cash and cash equivalents


Total cash and cash equivalents were $448.4 million and $557.4 million at
March 31, 2022 and December 31, 2021, respectively. The decrease is the result
of the disbursement of various funds received from the CARES Act. This balance,
which is comprised of cash and due from bank balances and interest-bearing
deposits that we maintain at other financial institutions (including the Federal
Reserve Bank of San Francisco, but excepting restricted cash), will vary
depending on daily cash settlement activities, the amount of highly liquid
assets needed based on known events such as the repayment of borrowings and
scheduled withdrawals, and actual cash on hand in the Bank's branches.

The following table shows the composition of our cash and cash equivalents balances as at March 31, 2022 and December 31, 2021:


                                              March 31, 2022       December 31, 2021       Variance
Cash and due from banks                      $         43,100     $            36,660     $    6,440
Interest-bearing deposits with financial
institutions                                          405,337                 520,743       (115,406 )
Total cash and cash equivalents              $        448,437     $           557,403     $ (108,966 )



Investment Securities

The Bank manages its securities portfolio to provide a source of both liquidity
and earnings. The Bank has an Asset/Liability Committee ("ALCO") that develops
and recommends current investment policies to the Board of Directors based on
its operating needs and market circumstances. The Bank's overall investment
policy is formally reviewed and approved annually by the Board of Directors, and
the Asset/Liability Committee is responsible for monitoring and reporting
compliance with the investment policy. Investment portfolio reports are provided
to the Board of Directors on a monthly basis.

                                       43
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At March 31, 2022, the carrying value of the investment securities portfolio
(excluding ASC Trust LLC stock and Federal Home Loan Bank stock) totaled $848.5
million, which represents a $36.8 million increase from the portfolio balance of
$811.7 million at December 31, 2021. The table below sets forth the amortized
cost and fair value of our investment securities portfolio, with gross
unrealized gains and losses, at March 31, 2022 and December 31, 2021:

                                                                  March 31, 2022
                                                             Gross            Gross
                                           Amortized       Unrealized       Unrealized       Estimated
                                              Cost           Gains            Losses         Fair Value
Securities Available-for-Sale
U.S. government agency and government
sponsored

corporate debt securities (GSE) $114,969 $- ($11,694) $103,275
WE government agency pool securities 29,066

               12             (260 )         28,818
U.S. government agency or GSE
residential
  mortgage-backed securities                  423,117                -          (27,155 )        395,962
Total                                      $  567,152     $         12     $    (39,109 )   $    528,055
Securities Held-to-Maturity
U.S. government agency and government
sponsored

corporate debt securities (GSE) $276,468 $- ($30,684) $245,784
WE government agency pool securities 2,386

                6              (64 )          2,328
U.S. government agency or GSE
residential
  mortgage-backed securities                   41,627               35           (2,545 )         39,117
Total                                      $  320,481     $         41     $    (33,293 )   $    287,229

                                                                 December 31, 2021
                                                             Gross            Gross
                                           Amortized       Unrealized       Unrealized       Estimated
                                              Cost           Gains            Losses         Fair Value
Securities Available-for-Sale
U.S. government agency and government
sponsored

corporate debt securities (GSE) $114,969 $- ($4,007) $110,962
WE government agency pool securities 21,106

                2             (247 )         20,861
U.S. government agency or GSE
residential
  mortgage-backed securities                  369,419            1,957           (3,833 )        367,543
Total                                      $  505,494     $      1,959     $     (8,087 )   $    499,366
Securities Held-to-Maturity
U.S. government agency and government
sponsored

corporate debt securities (GSE) $276,188 $- ($1,621) $274,567
WE government agency pool titles 3,028

                8              (45 )          2,991
U.S. government agency or GSE
residential
  mortgage-backed securities                   33,078              105             (369 )         32,814
Total                                      $  312,294     $        113     $     (2,035 )   $    310,372




At March 31, 2022 and December 31, 2021, investment securities with a carrying
value of $682.9 million and $558.8 million, respectively, were pledged to secure
various government deposits and other public requirements.

                                       44

————————————————– ——————————

The amortized cost and fair value of investment securities by contractual maturity at March 31, 2022 and December 31, 2021follows:

                                                                 March 31, 2022
                                               Available-for-Sale               Held-to-Maturity
                                           Amortized       Estimated       Amortized       Estimated
                                              Cost         Fair Value         Cost         Fair Value
Due within one year                        $       26     $         26     $        -     $          -
Due after one but within five years             6,954            6,916          1,709            1,691
Due after five but within ten years           158,847          146,421         61,833           56,368
Due after ten years                           401,325          374,692        256,939          229,170
Total                                      $  567,152     $    528,055     $  320,481     $    287,229

                                                                December 31, 2021
                                               Available-for-Sale               Held-to-Maturity
                                           Amortized       Estimated       Amortized       Estimated
                                              Cost         Fair Value         Cost         Fair Value
Due within one year                        $      105     $        105     $        -     $          -
Due after one but within five years             8,331            8,377          1,228            1,246
Due after five but within ten years           151,682          148,389         62,925           62,257
Due after ten years                           345,376          342,495        248,141          246,869
Total                                      $  505,494     $    499,366     $  312,294     $    310,372




                                       45
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Temporarily impaired securities

The following table presents the gross unrealized losses and the fair value of investments with unrealized losses that are not considered to be permanently impaired, grouped by investment category and the length of time that the individual securities have been in a continuous position of unrealized loss. carried out at March 31, 2022 and December 31, 2021:

                                                                         March 31, 2022
                                  Less Than Twelve Months             More Than Twelve Months                     Total
                               Unrealized         Estimated        Unrealized         Estimated        Unrealized       Estimated
                                 Losses           Fair Value         Losses           Fair Value         Losses         Fair Value
Securities Available for
Sale
U.S. government agency and
  government sponsored
enterprise

(GSE) debt securities – $ – $ ($11,694) $103,275 ($11,694) $103,275
WE government agency pool titles

                            (170 )           15,443              (90 )           10,055             (260 )         25,498
U.S. government agency or
GSE

Residential

mortgage-backed securities         (26,475 )          389,126             (680 )            6,836          (27,155 )        395,962
Total                         $    (26,645 )     $    404,569     $    

(12,464) $120,166 ($39,109) $524,735


Securities Held to Maturity
US government agency and
sponsored Agencies (GSE)
debt securities               $    (15,566 )     $    106,613     $    

(15,118) $139,171 ($30,684) $245,784
WE government agency pool titles

                             (52 )            1,303              (12 )              106              (64 )          1,409
U.S. government agency or
GSE

Residential

mortgage-backed securities          (2,514 )           28,677              (31 )              281           (2,545 )         28,958
Total                         $    (18,132 )     $    136,593     $    (15,161 )     $    139,558     $    (33,293 )   $    276,151

                                                                        December 31, 2021
                                  Less Than Twelve Months             More Than Twelve Months                     Total
                               Unrealized         Estimated       

Not realized Estimated Not realized Estimated

                                 Losses           Fair Value         Losses           Fair Value         Losses         Fair Value
Securities Available for
Sale
U.S. government agency and
  government sponsored
enterprise

(GSE) debt securities ($2,824) $82,145 ($1,183) $28,817 ($4,007) $110,962
WE government agency pool titles

                             (71 )            5,127             (176 )           14,743             (247 )         19,870
U.S. government agency or
GSE

Residential

mortgage-backed securities          (3,833 )          290,573                -                  -           (3,833 )        290,573
Total                         $     (6,728 )     $    377,845     $     

(1,359) $43,560 ($8,087) $421,405


Securities Held to Maturity
U.S. government agency and
  government sponsored
enterprise

(GSE) debt securities ($1,395) $159,840 $ (226 ) $114,726 ($1,621) $274,566
WE government agency pool titles

                             (37 )            1,507               (8 )              403              (45 )          1,910
U.S. government agency or
GSE

Residential

mortgage-backed securities            (362 )           28,498               (7 )              529             (369 )         29,027
Total                         $     (1,794 )     $    189,845     $       (241 )     $    115,658     $     (2,035 )   $    305,503



The Company does not believe that any of the investment securities that were in
an unrealized loss position as of March 31, 2022, which included a total of 221
securities, were other-than-temporarily impaired. Specifically, the 221
securities were comprised of 34 Small Business Administration Pool securities,
26 agency securities issued by Federal Home Loan Bank (FHLB), 33
mortgaged-backed securities and 19 agency securities issued by Federal Home Loan
Mortgage Corporation (FHLMC), 71 mortgaged-backed securities and 1 agency
security issued by Federal National Mortgage Association (FNMA), 19
mortgaged-backed securities issued by Government National Mortgage Association
(GNMA) and 18 agency securities issued by Federal Farm Credit Banks (FFCB).

Total gross unrealized losses were primarily attributable to changes in interest
rates relative to when the investment securities were purchased, and not due to
changes in the credit quality of the investment securities. The Bank does not
intend to sell the investment

                                       46
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securities that are in an unrealized loss position and it is not likely that,
except as needed to fund our liquidity position, the Bank will be required to
sell the investment securities before recovery of their amortized cost bases,
which may be at maturity.

Deposits

At March 31, 2022, total deposit liabilities decreased by $38.6 million from
$2.53 billion at December 31, 2021. Non-interest bearing deposits decreased by
$99.2 million, to $882.3 million at March 31, 2022, compared to $981.5 million
at December 31, 2021, and interest bearing deposits increased by $60.6 million,
to $1.61 billion at March 31, 2022, from $1.55 billion at December 31, 2021. The
1.52% decrease in total deposits was primarily due to the disbursement of funds
from various COVID-19 federal relief programs.

The following table sets forth the composition of our interest-bearing deposit
portfolio with the balances and average interest rates at March 31, 2022 and
December 31, 2021, respectively:

                                          March 31, 2022               December 31, 2021
                                                      Average                       Average
                                       Balance         rate          Balance         rate
Interest-bearing checking accounts   $   401,835          0.01 %   $   401,753          0.03 %
Savings accounts                       1,185,632          0.01 %     1,123,499          0.03 %
Certificates of deposit                   24,870          0.06 %       

26,442 0.12% Total interest-bearing deposits $1,612,337 0.01% $1,551,694 0.03%




As mentioned earlier, the Bank has expanded its operations and its branch
network since it first opened in 1972, first in Guam, then in the other islands
of our region and in San Francisco, California. As time has passed, the Bank has
gathered market share in each of the islands. In recent years, in order to
diversify its geographic market, the Bank has increased its focus on growth in
the California region. The following table provides figures for deposits in the
Bank's administrative regions at March 31, 2022 and December 31, 2021:

                                                      March 31, 2022       December 31, 2021
Guam                                                 $      1,417,580     $ 

1,386,314

Commonwealth of the Northern Mariana Islands                  475,630       

529,750

The Freely Associated States of Micronesia                    551,325                 557,444
California                                                     50,118                  59,723
Total                                                $      2,494,653     $         2,533,231



During the three months ended March 31, 2022, the Bank's deposits decreased by
$38.6 million (1.5%) to $2.49 billion compared to December 31, 2021. During this
period the decrease in our deposits were in our CNMI branches by $54.1 million,
California region by $9.6 million, and FAS branches by $6.1 million. These
decreases were partially offset by the increase in our Guam branches by $31.3
million.

Borrowed Funds

The Bank has a variety of sources from which it may obtain secondary funding.
These sources include, among others, the Federal Reserve Bank of San Francisco,
the Federal Home Loan Bank of Des Moines, and credit lines established with our
correspondent banks. Borrowings are obtained for a variety of reasons which
include, but are not limited to, funding loan growth, the purchase of
investments in the absence of core deposits, and to provide additional liquidity
to meet the demands of depositors.

On June 29, 2021, the Company issued $20.0 million of its 4.75%
Fixed-to-Floating Rate Subordinated Notes, due July 1, 2031 (the "2031 Notes").
The 2031 Notes are intended to qualify as Tier 2 capital for regulatory capital
purposes for the Company. The 2031 Notes have a ten-year term and initially bear
interest at a fixed annual rate of 4.75%. Beginning July 1 2026, the interest
rate will reset quarterly to the then-current three-month SOFR plus 413 basis
points. On July 6, 2021, with the approval of the Federal Reserve Bank of San
Francisco, the Company used $6.2 million of the proceeds from the 2031 Notes to
acquire an additional 25% of the stock of ASC Trust LLC at the third and final
closing pursuant to the 2016 Stock Purchase Agreement between the Company and
David J. John. The Company intends to use the remainder of the proceeds from the
2031 Notes for general corporate purposes.

On June 27, 2019, the Company issued $15.0 million of its 6.35%
Fixed-to-Floating Rate Subordinated Notes, due June 30, 2029 (the "2029 Notes").
The 2029 Notes are intended to qualify as Tier 2 capital for regulatory capital
purposes for the Company. The 2029 Notes have a ten-year term and initially bear
interest at a fixed annual rate of 6.35%. Beginning June 30, 2024, the interest
rate will reset quarterly to the then-current three-month LIBOR plus 466 basis
points. On July 1, 2019, with the approval of the Federal Reserve Bank of San
Francisco, the Company used $4.1 million of the proceeds from the 2029 Notes to
acquire an additional 20% of the stock of ASC Trust LLC at the second closing
pursuant to the 2016 Stock Purchase Agreement between the Company and David J.
John. On July 5, 2019, $10.0 million of the balance of the proceeds from the
2029 Notes was also used to purchase ten (10) shares of Series B Common Stock
from the Bank, with a par value of $1.0 million per share, to support the Bank's
strategic growth.

                                       47

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To March 31, 2022 and to December 31, 2021the Company had no short-term borrowings.

Liquidity


We actively manage our liquidity to ensure that sufficient funds are available
to meet our needs for cash, including cash needed to fund new loans and to
accommodate deposit withdrawals and other transactions by our customers. We
project future sources and uses of funds, and maintain additional liquid funds
for unanticipated events. Our primary sources of cash include cash we have in
deposits at other financial institutions, the repayment of loans, proceeds from
the sale or maturity of investment securities, and increases in deposits. The
primary uses of cash include funding new loans and making advances on existing
lines of credit, purchasing investments, funding new residential mortgage loans,
funding deposit withdrawals, and paying operating expenses. From time to time,
we may maintain funds in overnight Federal Funds and other short-term
investments to provide for short-term liquidity needs. We also have established,
for contingency funding purposes, credit lines with the Federal Reserve Bank of
San Francisco, the Federal Home Loan Bank-Seattle, and correspondent commercial
banks in the U.S. We believe that our liquid assets, together with our available
credit lines, will be sufficient to meet normal operating requirements for at
least the next twelve months, including to enable us to meet any increase in
withdrawals from depository accounts that might occur in the foreseeable future.

At March 31, 2022, our liquid assets, which include cash and due from banks,
interest-earning deposits with financial institutions (excluding restricted
cash), and investment securities available-for-sale totaled $976.5 million, down
$80.3 million from $1.06 billion at December 31, 2021. This decrease is
comprised of a $115.4 million decrease in interest bearing deposits in banks,
partially offset by a $28.7 million increase in investment securities
available-for-sale, and a $6.4 million increase in cash and due from banks.

Management believes we have sufficient cash to meet the demands of the
distribution of funds under the CARES Act. However, we will monitor our vault
cash on a daily basis, and if the need arises we will acquire additional cash by
drawing down our deposits with other financial institutions, including the
Federal Bank of San Francisco.

Contractual obligations

The Bank uses facilities, equipment and land under various operating leases with terms, including renewal options, ranging from 1 to 99 years.


The following table provides the maturities of lease liabilities at March 31,
2022:

                                          Operating
                                          Leases (a)       Total
2022                                     $      1,733     $  1,733
2023                                            2,022        2,022
2024                                            1,910        1,910
2025                                            1,778        1,778
2026                                            1,544        1,544
After 2026                                     33,218       33,218
Total lease payments                           42,205       42,205
Less: Interest (b)                             21,040       21,040

Present value of rental debts (c) $21,165 $21,165

Note: For leases beginning before 2019, minimum lease payments exclude payments to landlords for property taxes and maintenance of common areas.

(a) Operating lease payments include $19.0 million regarding expansion options

rental conditions which it is reasonably certain will be exercised.

(b) Calculated using incremental borrowing rate based on lease term for

       each lease.


  (c) Includes the current portion of $1.5 million for operating leases.



The Bank leases certain facilities from two separate entities in which two of
its directors have separate ownership interests. Lease payments made to these
entities during the three months ended March 31, 2022 and 2021, approximated $65
thousand and $62 thousand, respectively.

Additionally, the Bank leases office space to third parties, with original lease
terms ranging from 1 to 3 years with option periods ranging up to 12 years. At
March 31, 2022, minimum future rents to be received under non-cancelable
operating sublease agreements were $31 thousand, and $26 thousand for the
periods ending December 31, 2022, and 2023, respectively.

                                       48

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A summary of rental activity for the three months ended March 31, 2022respectively, is as follows:

                         Three Months Ended March 31,
                        2022                   2021
Rent expense         $       968         $          1,025
Total rent expense   $       968         $          1,025


Off-balance sheet arrangements


The Bank is a party to credit-related financial instruments with
off-balance-sheet risk in the normal course of business to meet the financing
needs of its customers. These financial instruments include commitments to
extend credit, standby letters of credit and commercial letters of credit. Such
commitments involve, to varying degrees, elements of credit and interest rate
risk in excess of the amount reflected in our condensed consolidated financial
statements.

The Bank's exposure to credit loss, in the event of nonperformance by the other
parties to financial instruments for loan commitments and letters of credit, is
represented by the contractual amount of these instruments. The Bank follows
essentially the same credit policies in making commitments and conditional
obligations as it does for on-balance-sheet instruments.

A summary of the financial instruments presenting an off-balance sheet risk at March 31, 2022
and December 31, 2021is as follows:

                                March 31, 2022       December 31, 2021
Commitments to extend credit   $        165,064     $           162,569

Letters of credit:
Standby letters of credit      $         48,890     $            43,239
Commercial letters of credit              2,048                   2,366
Total                          $         50,938     $            45,605



Commitments to extend credit are agreements to lend to a customer as long as
there is no violation of any condition established in the contract. Commitments
generally have fixed expiration dates or other termination clauses, and may
require payment of a fee. The commitments for certain lines of credit may expire
without being drawn upon. Therefore, the total commitment amounts do not
necessarily represent future cash requirements. The Bank evaluates each
customer's credit worthiness on a case-by-case basis. The amount of collateral
obtained, if it is deemed necessary by the Bank upon extension of credit, is
based on management's credit evaluation of the customer.

Commercial and standby letters of credit are conditional commitments issued by
the Bank to guarantee the performance of a customer to a third party or the
shipment of merchandise from a third party. Those letters of credit are
primarily issued to support public and private borrowing arrangements. Almost
all letters of credit issued have expiration dates within one year. The credit
risk involved in issuing letters of credit is effectively the same as that
involved in extending loan facilities to customers. The Bank generally holds
collateral supporting those commitments.

The Bank considers its standby and commercial letters of credit to be
guarantees. At March 31, 2022, the maximum undiscounted future payments that the
Bank could be required to make was $50.9 million. Almost all of these
arrangements mature within one year. The Bank generally has recourse to recover
from the customer any amounts paid under these guarantees. Most of the
guarantees are fully collateralized; however, several that are extended to the
Bank's most creditworthy customers are unsecured. The Bank has recorded $50
thousand in reserve liabilities associated with commitments to extend credit and
letters of credit at March 31, 2022.

Mortgage loans serviced for others are not included in the accompanying
condensed consolidated statements of financial condition. The unpaid principal
balances of mortgage loans serviced for others were $177.4 million and $181.1
million at March 31, 2022 and December 31, 2021, respectively. At March 31,
2022, and December 31, 2021, the Bank's mortgage servicing rights each totaled
$1.6 million.

Capital Resources

The Company and the Bank are subject to various regulatory capital requirements
administered by the United States federal banking agencies. Failure to meet
minimum capital requirements can initiate certain mandatory and possibly
additional discretionary actions by regulators that, if undertaken, could have a
direct material effect on the Company's and the Bank's condensed consolidated
financial statements. Under capital adequacy guidelines and the regulatory
framework for prompt corrective action, the Company and the Bank must meet or
exceed specific capital guidelines that involve quantitative measures of their
assets, liabilities and certain off-balance-sheet items as calculated under
regulatory accounting practices.

                                       49
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Quantitative measures established by regulation to ensure capital adequacy
require the Company and the Bank to maintain minimum amounts and ratios (set
forth in the following table) of total and Tier 1 capital and Common Equity Tier
1 capital (as defined in the regulations) to risk-weighted assets (as defined)
and of Tier 1 capital (as defined) to average assets (as defined). As of
March 31, 2022 and December 31, 2021, the Bank met all capital adequacy
requirements to which it is subject.

As of March 31, 2022, the Bank's capital ratios each exceeded the Federal
Deposit Insurance Corporation's well capitalized standards under the regulatory
framework for prompt corrective action. To be categorized as well capitalized,
an institution must maintain minimum total risk-based, Tier 1 risk-based and
Tier 1 leverage ratios as set forth in the following table. There have been no
conditions or events since the most recent FDIC notification that management
believes have changed the Bank's category.

The required and actual capital amounts and ratios of the Company at March 31, 2022 and December 31, 2021were the following:


                                                                                           To Be Well Capitalized
                                                            For Capital Adequacy          Under Prompt Corrective
                                      Actual                      Purposes                   Action Provisions
                               Amount        Ratio          Amount          Ratio          Amount            Ratio
At March 31, 2022:
Total capital (to Risk
  Weighted Assets)            $ 225,236       15.038 %   $    119,819         8.000 %   $     149,773         10.000 %
Tier 1 capital (to Risk
  Weighted Assets)            $ 171,365       11.442 %   $     89,864         6.000 %   $     119,819          8.000 %
Tier 1 capital (to Average
  Assets)                     $ 171,365        6.165 %   $    111,184         4.000 %   $     138,980          5.000 %
Common Equity Tier 1
  Capital (to Risk Weighted
  Assets)                     $ 161,582       10.788 %   $     67,398         4.500 %   $      97,353          6.500 %

At December 31, 2021:
Total capital (to Risk
  Weighted Assets)            $ 222,493       15.161 %   $    117,403         8.000 %   $     146,753         10.000 %
Tier 1 capital (to Risk
  Weighted Assets)            $ 168,623       11.490 %   $     88,052         6.000 %   $     117,403          8.000 %
Tier 1 capital (to Average
  Assets)                     $ 168,623        5.792 %   $    116,461         4.000 %   $     145,577          5.000 %
Common Equity Tier 1
  Capital (to Risk Weighted
  Assets)                     $ 158,840       10.824 %   $     66,039         4.500 %   $      95,390          6.500 %



Since the formation of BankGuam Holding Company in 2011, our assets have grown
by 147.2% ($1.6 billion), while our stockholders' equity has increased by 77.7 %
($69.0 million, including $83.9 million in retained earnings). The growth in
equity has contributed to help keep the capital ratios to be well above the well
capitalized standards.

The Bank received a large influx of deposits from the federal relief programs
due to the COVID-19 pandemic, resulting in the growth of its balance sheet as
compared to 2020. As of March 31, 2022, approximately $164.1 million in COVID
related funds have yet to be disbursed. Although the Bank's average assets
decreased at March 31, 2022 to $2.78 billion from $2.91 billion in December 31,
2021, the growth resulting from the receipt of COVID funds has put pressure on
its ratio of Tier 1 capital to average assets. Management believes that the Bank
has the capacity to absorb the growth in total assets, and the tools needed to
move deposits off its balance through its Trust services to continue to be above
the well capitalized standards under the regulatory framework for prompt
corrective action.

Reverse stock split


On April 12, 2022, the Company's Board of Directors approved a 1-for-500 reverse
stock split of the Company's common stock, which remains subject to shareholder
approval and the receipt of regulatory approvals. If the reverse stock split is
effected, shareholders of the Company who own fewer than 500 shares of the
Company's common stock will receive a cash payment in lieu of a fraction of a
share, and will no longer be shareholders of the Company. Shareholders holding
500 or more shares of the Company's common stock will remain shareholders after
the reverse stock split, and will also be entitled to receive a cash payment in
lieu of receiving a fraction of a share. The Board of Directors determined that
$14.75 per share outstanding prior to the reverse stock split would be a fair
price to pay for shares that will be canceled in lieu of issuing a fraction of a
share in connection with the reverse stock split. The Board of Directors has
reserved the right to abandon the reverse stock split at any time if it believes
the reverse stock split is no longer in the Company's best interests. If
effected, the Company estimates that the aggregate amount of cash that would be
payable

                                       50
--------------------------------------------------------------------------------
to shareholders in lieu of fractional shares as a result of the reverse stock
split would be approximately $8.8 million, which would be paid by the Company
out of cash on hand.

Stock Purchase Plan

The Company's 2011 Employee Stock Purchase Plan (the "2011 Plan") was adopted by
the Company's Board of Directors and approved by the Company's Stockholders on
May 2, 2011, to replace the Company's 2001 Non-Statutory Stock Option Plan. This
plan was subsequently adopted by the Company after the reorganization. The 2011
Plan is open to all employees of the Company and its subsidiaries who have met
certain eligibility requirements.

Under the 2011 Plan, as amended and restated as of July 1, 2012, eligible
employees can purchase, through payroll deductions, shares of common stock at a
discount. The right to purchase stock is granted to eligible employees during a
quarterly offer period that is established from time to time by the Board of
Directors of the Company. Eligible employees cannot accrue the right to purchase
more than $25 thousand worth of stock at the fair market value at the beginning
of each offer period. Eligible employees also may not purchase more than one
thousand five hundred (1,500) shares of stock in any one offer period. The
shares are purchased at 85% of the fair market price of the stock on the
enrollment date.

In April 2022the company suspended the employee stock purchase plan as part of the company’s plans to implement a 1 for 500 stock consolidation, which remains subject to shareholder approval and approval. obtaining regulatory approvals.

Emergency planning and cybersecurity


The Bank has developed a comprehensive business continuity plan to manage
disruptions that affect customers or internal processes, whether caused by
man-made or natural events. In modern banking, technology has taken on an
increasingly important role, and the Bank also has a technology recovery
component incorporated into the business continuity plan that provides
procedures for recovering from a technology failure. The technology recovery
procedures are tested and implemented from time to time. The recovery time
objectives for the Bank's major technological processes range from eight hours
to 80 hours, with the goal of enabling the Bank to maintain or resume operations
with a minimum impact on its customers. As the results of testing are analyzed
and as technology continues to advance, improvements are made in the Bank's
processes and procedures as the plan evolves, although there can be no assurance
that business disruption or operational losses will not occur.

The rapid advances in computing and telecommunications technology over the past
several decades have brought with them increasingly sophisticated methods of
delivering financial services through electronic channels. Along with these
advances, though, have come risks regarding the integrity and privacy of data,
and these risks apply to banking, falling into the general classification of
cybersecurity. The Bank has made substantial investments in multiple systems to
ensure both the integrity of its data and the protection of the privacy of its
customers' personal financial and identity information. While it is not possible
for anyone to give an absolute guarantee that data will not be compromised, the
Bank strives to provide a reasonable assurance that the financial and personal
data that it holds are secure.

© Edgar Online, source Previews

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Critical analysis of Southern States Bancshares (SSBK) compared to its peers http://chance-for-rosi.org/critical-analysis-of-southern-states-bancshares-ssbk-compared-to-its-peers/ Sun, 08 May 2022 14:25:26 +0000 http://chance-for-rosi.org/critical-analysis-of-southern-states-bancshares-ssbk-compared-to-its-peers/

Southern States Bank Stocks (NASDAQ: SSBKGet a rating) is one of 315 SOEs in the “state commercial banking” sector, but how does it stack up against its peers? We will compare Southern States Bancshares to related companies based on strength of institutional ownership, dividends, profitability, valuation, analyst recommendations, earnings and risk.

Analyst Notes

This is a summary of recent ratings and recommendations for Southern States Bancshares and its peers, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Southern States Bank Stocks 0 0 2 0 3.00
Competitors of Southern States Bancshares 2278 9739 7746 572 2.33

Southern States Bancshares currently has a consensus price target of $23.50, indicating a potential upside of 2.26%. As a group, the “State Commercial Bank” companies have an upside potential of 32.18%. Given that Southern States Bancshares peers have higher upside potential, analysts clearly believe that Southern States Bancshares has less favorable growth aspects than its peers.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of Southern States Bancshares and its peers.

Gross revenue Net revenue Price/earnings ratio
Southern States Bank Stocks $68.58 million $18.57 million 11:38
Competitors of Southern States Bancshares $1.30 billion $321.66 million 11.51

Southern States Bancshares peers have higher revenue and earnings than Southern States Bancshares. Southern States Bancshares trades at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

62.6% of Southern States Bancshares shares are held by institutional investors. By comparison, 51.9% of the shares of all “state commercial bank” companies are held by institutional investors. 14.8% of Southern States Bancshares shares are held by insiders. By comparison, 10.5% of the shares of all “state commercial bank” companies are held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company will outperform the market over the long term.

Dividends

Southern States Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. Southern States Bancshares pays 17.8% of its profits in the form of a dividend. As a group, the “state commercial bank” companies pay a dividend yield of 2.4% and pay out 26.1% of their profits as a dividend.

Profitability

This table compares the net margins, return on equity and return on assets of Southern States Bancshares and its peers.

Net margins Return on equity return on assets
Southern States Bank Stocks 25.80% 10.21% 1.05%
Competitors of Southern States Bancshares 28.72% 12.50% 1.32%

Summary

Southern States Bancshares peers beat Southern States Bancshares on 9 of the 14 factors compared.

Southern States Bancshares Company Profile (Get a rating)

Southern States Bancshares, Inc. operates as a bank holding company for Southern States Bank which provides community banking services to businesses and individuals. It offers various deposit products, such as savings, money market and non-interest bearing current accounts; certificates of deposit; and term deposits. The Company also offers real estate lending products, which include loans for real estate construction and development, residential mortgages and commercial real estate mortgages; commercial and industrial loans; and direct consumer installment loans, overdrafts and other revolving loans. Additionally, it offers online and mobile banking and ATM services. The company operates 15 offices in Alabama and Georgia, as well as a loan origination office in Atlanta, Georgia. Southern States Bancshares, Inc. was founded in 2007 and is headquartered in Anniston, Alabama.



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CITIZENS FINANCIAL GROUP INC/RI MANAGEMENT REPORT OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-Q) http://chance-for-rosi.org/citizens-financial-group-inc-ri-management-report-of-financial-position-and-results-of-operations-form-10-q/ Wed, 04 May 2022 20:43:15 +0000 http://chance-for-rosi.org/citizens-financial-group-inc-ri-management-report-of-financial-position-and-results-of-operations-form-10-q/

Page

       Forward-Looking Statements                                              6
       Introduction                                                            7
       Financial Performance                                                  8
       Results of Operations                                                  10
       Net Interest Income                                                    10
       Noninterest Income                                                     11
       Noninterest Expense                                                    12
       Provision for Credit Losses                                            12
       Income Tax Expense                                                     12
       Business Operating Segments                                            12
       Analysis of Financial Condition                                        14
       Securities                                                             14
       Loans and Leases                                                       15
       Allowance for Credit Losses and Nonaccrual Loans and Leases            15
       Deposits                                                               20
       Borrowed Funds                                                         20
       Capital and Regulatory Matters                                         20
       Liquidity                                                              23
       Critical Accounting Estimates                                          26
       A    cco    unting and Reporting Developments                          28
       Risk Governance                                                        28
       Market Risk                                                            29
       Non-GAAP Financial Measures and Reconciliations                        33



                                              Citizens Financial Group, Inc. | 5
--------------------------------------------------------------------------------

FORWARD-LOOKING STATEMENTS


This document contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Statements regarding potential
future share repurchases and future dividends as well as the potential effects
of the COVID-19 disruption and Russia's invasion of Ukraine on our business,
operations, financial performance and prospects, are forward-looking statements.
Also, any statement that does not describe historical or current facts is a
forward-looking statement. These statements often include the words "believes,"
"expects," "anticipates," "estimates," "intends," "plans," "goals," "targets,"
"initiatives," "potentially," "probably," "projects," "outlook," "guidance" or
similar expressions or future conditional verbs such as "may," "will," "should,"
"would," and "could."

Forward-looking statements are based upon the current beliefs and expectations
of management, and on information currently available to management. Our
statements speak as of the date hereof, and we do not assume any obligation to
update these statements or to update the reasons why actual results could differ
from those contained in such statements in light of new information or future
events. We caution you, therefore, against relying on any of these
forward-looking statements. They are neither statements of historical fact nor
guarantees or assurances of future performance. While there is no assurance that
any list of risks and uncertainties or risk factors is complete, important
factors that could cause actual results to differ materially from those in the
forward-looking statements include the following, without limitation:

•Negative economic and political conditions that adversely affect the general
economy, housing prices, the job market, consumer confidence and spending habits
which may affect, among other things, the level of nonaccrual assets,
charge-offs and provision expense;

•The rate of economic growth and employment levels, as well as general business and economic conditions and changes in the competitive environment;


•Our ability to implement our business strategy, including the cost savings and
efficiency components, and achieve our financial performance goals, including
through the integration of Investors and the HSBC branches;

•The disruption of COVID-19 and its effects on the economic and business environments in which we operate;


•The impact of Russia's invasion of Ukraine and the imposition of sanctions on
Russia and other actions in response, including on economic and market
conditions, inflationary pressures and the interest rate environment, commodity
price and foreign exchange rate volatility, and heightened cybersecurity risks;

•Our ability to meet increased supervisory requirements and expectations;

• Liabilities and business restrictions resulting from litigation and regulatory investigations;

•Our capital and liquidity requirements in accordance with regulatory capital standards and our ability to generate capital internally or raise capital on favorable terms;

•The effect of changes in interest rates on our net interest income, net interest margin and originations of mortgages, mortgage servicing rights and mortgages held for sale;


•Changes in interest rates and market liquidity, as well as the magnitude of
such changes, which may reduce interest margins, impact funding sources and
affect the ability to originate and distribute financial products in the primary
and secondary markets;

• The effect of changes in the level of deposits in checking or savings accounts on our funding costs and our net interest margin;

• Financial services reform and other current, pending or future legislation or regulations that could adversely affect our revenues and business;

•A failure or breach of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyberattacks;

• Higher than expected costs or other difficulties in integrating our business with that of the Investors and relevant HSBC branches;

                                              Citizens Financial Group, Inc. | 6
--------------------------------------------------------------------------------

• The inability to retain existing investors or HSBC customers and employees following the closing of the Investors acquisition and the HSBC transaction; and

•Management’s ability to identify and manage these and other risks.


In addition to the above factors, we also caution that the actual amounts and
timing of any future common stock dividends or share repurchases will be subject
to various factors, including our capital position, financial performance,
risk-weighted assets, capital impacts of strategic initiatives, market
conditions and regulatory and accounting considerations, as well as any other
factors that our Board of Directors deems relevant in making such a
determination. Therefore, there can be no assurance that we will repurchase
shares from or pay any dividends to holders of our common stock, or as to the
amount of any such repurchases or dividends. Further, statements about the
effects of the COVID-19 disruption and Russia's invasion of Ukraine on our
business, operations, financial performance and prospects may constitute
forward-looking statements and are subject to the risk that the actual impacts
may differ, possibly materially, from what is reflected in those forward-looking
statements due to factors and future developments that are uncertain,
unpredictable and in many cases beyond our control, including the scope and
duration of the pandemic and Russia's invasion of Ukraine, actions taken by
governmental authorities in response to the pandemic and Russia's invasion of
Ukraine, and the direct and indirect impact of the pandemic and Russia's
invasion of Ukraine on our customers, third parties and us.

More information about factors that could cause actual results to differ
materially from those described in the forward-looking statements can be found
in the "Risk Factors" section in Part II, Item 1A of this report and Part I,
Item 1A of our 2021 Form 10-K.

INTRODUCTION


Citizens Financial Group, Inc. is one of the nation's oldest and largest
financial institutions with $192.1 billion in assets as of March 31, 2022.
Headquartered in Providence, Rhode Island, we offer a broad range of retail and
commercial banking products and services to individuals, small businesses,
middle-market companies, large corporations and institutions. We help our
customers reach their potential by listening to them and by understanding their
needs in order to offer tailored advice, ideas and solutions. In Consumer
Banking, we provide an integrated experience that includes mobile and online
banking, a full-service customer contact center and, including the acquisition
of Investors, the convenience of approximately 3,300 ATMs and more than 1,200
branches in 14 states and the District of Columbia. Consumer Banking products
and services include a full range of banking, lending, savings, wealth
management and small business offerings. In Commercial Banking, we offer a broad
complement of financial products and solutions, including lending and leasing,
deposit and treasury management services, foreign exchange, interest rate and
commodity risk management solutions, as well as loan syndication, corporate
finance, merger and acquisition, and debt and equity capital markets
capabilities. More information is available at www.citizensbank.com.

On February 18, 2022, CBNA completed the acquisition of HSBC East Coast branches
and national online deposit business. The transaction extends our physical
presence and adds customers in several attractive markets, accelerating our
national expansion strategy. The transaction includes 66 locations in the New
York City metropolitan area, 9 locations in the Mid-Atlantic/Washington D.C.
area, and 5 locations in Southeast Florida.

On April 6, 2022, Citizens completed the acquisition of all outstanding shares
of Investors for a combination of stock and cash. The acquisition enhances
Citizens' banking franchise, adding an attractive middle market, small business
and consumer customer base while building our physical presence in the
Mid-Atlantic region with the addition of 154 branches located in the greater New
York City and Philadelphia metropolitan areas and across New Jersey.

For more information on these acquisitions, see Note 2.


The following MD&A is intended to assist readers in their analysis of the
accompanying unaudited interim Consolidated Financial Statements and
supplemental financial information. It should be read in conjunction with the
unaudited interim Consolidated Financial Statements and Notes to the unaudited
interim Consolidated Financial Statements in Part I, Item 1, as well as other
information contained in this document and our 2021 Form 10-K.

Non-GAAP Financial Measures


This document contains non-GAAP financial measures denoted as "Underlying"
results. Underlying results for any given reporting period exclude certain items
that may occur in that period which management does not consider indicative of
our on-going financial performance. We believe these non-GAAP financial measures
provide

                                              Citizens Financial Group, Inc. | 7
--------------------------------------------------------------------------------

useful information to investors because they are used by management to evaluate
our operating performance and make day-to-day operating decisions. In addition,
we believe our Underlying results in any given reporting period reflect our
on-going financial performance, increase comparability of period-to-period
results, and are useful to consider in addition to our GAAP financial results.

Other companies may use similarly titled non-GAAP financial measures that are
calculated differently from the way we calculate such measures. Accordingly, our
non-GAAP financial measures may not be comparable to similar measures used by
such companies. We caution investors not to place undue reliance on such
non-GAAP financial measures, but to consider them with the most directly
comparable GAAP measures. Non-GAAP financial measures have limitations as
analytical tools and should not be considered in isolation or as a substitute
for our results reported under GAAP.

Non-GAAP measures are denoted throughout our MD&A by the use of the term
Underlying. Where there is a reference to these metrics in that paragraph, all
measures that follow are on the same basis when applicable. For more information
on the computation of non-GAAP financial measures, see "-Non-GAAP Financial
Measures and Reconciliations."

FINANCIAL PERFORMANCE

Quarter to date and end of period – Highlights


Net income of $420 million decreased $191 million from the first quarter of
2021, with earnings per diluted common share of $0.93, down $0.44 from $1.37 per
diluted common share in the first quarter of 2021. ROTCE of 11.4% decreased from
17.2% in the first quarter of 2021.

In the first quarter of 2022, results reflect $56 million of expenses, net of
tax benefit, or $0.14 per diluted common share, from notable items compared to
$15 million of expenses, net of tax benefit, or $0.04 per diluted common share,
from notable items in the first quarter of 2021.

Table 1: Notable elements

                                                                                     Three Months Ended March 31, 2022
                                                                                               Less: notable items
                                                                               Integration                                             Underlying results
(in millions)                                     Reported results (GAAP)   

costs(1) TOP and other(2) Provision(3) (non-GAAP) Provision (profit) for credit losses

                          $3                       $-              $-                  $24                 ($21)
Noninterest expense                                         1,106                       37              11                    -                1,058
Income tax expense                                            116                      (10)              -                   (6)                 132


                                                                                     Three Months Ended March 31, 2021
                                                                                               Less: notable items
                                                                                                                                        Underlying results
(in millions)                                     Reported results (GAAP)   

TOP integration costs and others(2) Provision (non-GAAP) Provision (profit) for credit losses

                       ($140)                    $-                   $-                  $-               ($140)
Noninterest expense                                         1,018                      -                   20                   -                 998
Income tax expense                                            170                      -                   (5)                  -                 175


(1) Includes integration costs associated with acquisitions.
(2) Includes our TOP transformational and revenue and efficiency initiatives for
the three months ended March 31, 2022 and 2021, and income tax impacts related
to legacy tax matters for the three months ended March 31, 2022.
(3) Includes the initial provision for credit losses of $24 million tied to the
HSBC transaction. As required by purchase accounting, a fair value mark for
performing loans including both credit and interest rate components is recorded
in addition to the provision for credit losses expense, thus the credit exposure
has been "double counted".

• Net profit available to ordinary shareholders of $396 million decreases $192 millioncompared to $588 million in the first quarter of 2021.

• On an underlying basis, which excludes notable items, net income available to common shareholders of $452 million compared to $603 million in the first quarter of 2021.

• On an underlying basis, diluted earnings per ordinary share of $1.07 compared to
$1.41 in the first quarter of 2021.


                                              Citizens Financial Group, Inc. | 8
--------------------------------------------------------------------------------

• Total turnover of $1.6 billion decreases $14 millionor 1%, compared to the first quarter of 2021, due to an 8% decline in non-interest income, partially offset by a 3% increase in net interest income.

• Net interest income of $1.1 billion increased by 3%, reflecting 3% growth in interest-earning assets and an overall stable net interest margin.

• The net interest margin of 2.75% is stable compared to the first quarter of 2021.

– Net interest margin on an ETP basis of 2.75% decreased by 1 basis point, compared to 2.76% in the first quarter of 2021, as the impact of lower yields on earning assets was largely offset by the deployment of cash in loan growth.


-Average loans and leases of $129.2 billion increased $6.3 billion, or 5%, from
$122.8 billion in the first quarter of 2021, driven by a $6.6 billion increase
in retail loans given growth in mortgage, auto and education, and the impact of
the HSBC transaction, partially offset by planned run-off of personal unsecured
installment loans and a $304 million decrease in commercial as growth was more
than offset by a reduction in PPP loans.

-Average deposits of $155.1 billion increased $8.4 billion, or 6%, from $146.6
billion in the first quarter of 2021, driven by the impact of the HSBC
transaction and growth in demand, checking with interest and savings, partially
offset by a decrease in money market and term.

• Non-interest income of $498 million decreases $44 millionor 8%, compared to the first quarter of 2021, primarily reflecting lower mortgage banking fees partially offset by improved capital markets fees, foreign exchange and derivatives income, and other income.

• Non-interest expenses of $1.1 billion increased by 9% compared to the first quarter of 2021.


•On an Underlying basis, noninterest expense increased 6% from the first quarter
of 2021, reflecting higher salaries and employee benefits given merit increases,
and other operating expense associated with increased travel and advertising
costs, partially offset by the benefit of efficiency initiatives.

•The efficiency coefficient of 67.2% compared to 61.4% for the first quarter of 2021, and the ROTCE of 11.4% compared to 17.2%.

• On an underlying basis, the efficiency ratio of 64.3% compared to 60.2% for the first quarter of 2021, and the ROTCE of 13.0% compared to 17.6%.


•Credit provision expense of $3 million compares with a $140 million credit
provision benefit for the first quarter of 2021, reflecting strong credit
performance across the retail and commercial loan portfolios. The first quarter
2022 Underlying credit provision benefit excludes the "double count" of the $24
million day-one CECL provision expense tied to the HSBC transaction.

•Tangible book value per common share of $30.97 decreased 6% from the first
quarter of 2021.


                                              Citizens Financial Group, Inc. | 9
--------------------------------------------------------------------------------

RESULTS OF OPERATIONS

Net interest income


Net interest income is our largest source of revenue and is the difference
between the interest earned on interest-earning assets (generally loans, leases
and investment securities) and the interest expense incurred in connection with
interest-bearing liabilities (generally deposits and borrowed funds). The level
of net interest income is primarily a function of the difference between the
effective yield on our average interest-earning assets and the effective cost of
our interest-bearing liabilities. These factors are influenced by the pricing
and mix of interest-earning assets and interest-bearing liabilities which, in
turn, are impacted by external factors such as local economic conditions,
competition for loans and deposits, the monetary policy of the FRB and market
interest rates. For further discussion, refer to "-Market Risk - Non-Trading
Risk," and "-Risk Governance" as described in our 2021 Form 10-K.

Table 2: Main components of net interest income

                                                                                        Three Months Ended March 31,
                                                                         2022                                                  2021                                        Change
                                                         Average         Income/        Yields/                Average         Income/        Yields/             Average         Yields/
(dollars in millions)                                   Balances         Expense         Rates                Balances         Expense         Rates              Balances      Rates (bps)

Assets:

Interest-bearing cash and due from banks and
deposits in banks                                           $8,055           $4             0.21  %              $10,861           $3            0.11  %         ($2,806)          10 bps
Taxable investment securities                               29,245          138             1.88                  27,031          128            1.89              2,214                   (1)
Non-taxable investment securities                                2            -             2.60                       3            -            2.60                 (1)                    -
Total investment securities                                 29,247          138             1.88                  27,034          128            1.89              2,213                   (1)
Commercial and industrial                                   44,947          328             2.91                  44,287          347            3.12                660                  (21)
Commercial real estate                                      14,066           90             2.57                  14,675           94            2.57               (609)                    -
Leases                                                       1,560           11             2.81                   1,915           13            2.69               (355)                   12
Total commercial loans and leases                           60,573          429             2.83                  60,877          454            2.98               (304)                 (15)
Residential mortgages                                       23,461          169             2.88                  19,388          148            3.05              4,073                  (17)
Home equity                                                 12,124           90             3.02                  12,001           95            3.20                123                  (18)
Automobile                                                  14,534          127             3.55                  12,229          125            4.14              2,305                  (59)
Education                                                   13,034          131             4.07                  12,436          134            4.38                598                  (31)
Other retail                                                 5,428          102             7.63                   5,916          105            7.25               (488)                   38
Total retail loans                                          68,581          619             3.65                  61,970          607            3.96              6,611                  (31)
Total loans and leases                                     129,154        1,048             3.26                 122,847        1,061            3.47              6,307                  (21)
Loans held for sale, at fair value                           2,366           16             2.70                   3,254           18            2.27               (888)                   43
Other loans held for sale                                      454            7             5.89                     385            6            6.30                 69                  (41)
Interest-earning assets                                    169,276        1,213             2.88                 164,381        1,216            2.97              4,895                   (9)
Noninterest-earning assets                                  19,041                                                18,188                                             853
Total assets                                              $188,317                                              $182,569                                          $5,748
Liabilities and Stockholders' Equity:
Checking with interest                                     $30,417           $5             0.07  %              $26,116           $6            0.09  %          $4,301            (2)
Money market                                                47,220           12             0.10                  49,536           22            0.18             (2,316)           (8)
Savings                                                     23,835            5             0.08                  18,611            5            0.11              5,224            (3)
Term                                                         4,970            3             0.29                   8,572           17            0.83             (3,602)           (54)
Total interest-bearing deposits                            106,442           25             0.10                 102,835           50            0.20              3,607            (10)
Short-term borrowed funds                                       29            -             3.50                     150            -            0.46               (121)           304
Long-term borrowed funds                                     6,066           41             2.66                   8,336           49            2.35             (2,270)            31
Total borrowed funds                                         6,095           41             2.66                   8,486           49            2.32             (2,391)            34
Total interest-bearing liabilities                         112,537           66             0.23                 111,321           99            0.36              1,216            (13)
Demand deposits                                             48,641                                                43,814                                           4,827
Other liabilities                                            4,144                                                 4,858                                            (714)
Total liabilities                                          165,322                                               159,993                                           5,329
Stockholders' equity                                        22,995                                                22,576                                             419
Total liabilities and stockholders' equity                $188,317                                              $182,569                                          $5,748
Interest rate spread                                                                        2.65  %                                              2.62  %                             3
Net interest income and net interest margin                              $1,147             2.75  %                            $1,117            2.75  %                             -
Net interest income and net interest margin, FTE(1)                      $1,149             2.75  %                            $1,120            2.76  %                            (1)

Reminder: Total deposits (interest bearing and demand) $155,083 $25

             0.07  %             $146,649          $50            0.14  

% $8,434 (7) basis points

(1) Net interest income and net interest margin are presented on an FTE basis using the federal statutory tax rate of 21%. The ETP impact is mainly attributable to commercial and industrial loans for the periods presented.

                                             Citizens Financial Group, Inc. | 10
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Net interest income of $1.1 billion increased 3% from the first quarter of 2021,
reflecting 3% growth in interest-earning assets and broadly stable net interest
margin.

Net interest margin on a FTE basis of 2.75% decreased 1 basis point compared to
2.76% in the first quarter of 2021, as the impact of lower earning asset yields
was largely offset by the deployment of cash into loan growth. Average
interest-earning asset yields of 2.88% decreased 9 basis points from 2.97% in
the first quarter of 2021, while average interest-bearing liability costs of
0.23% decreased 13 basis points from 0.36% in the first quarter of 2021.

Average interest-earning assets of $169.3 billion increased $4.9 billion, or 3%,
from the first quarter of 2021, as a $2.2 billion, or 8% increase in investments
and a $6.3 billion, or 5%, increase in loans and leases was partially offset by
a $2.8 billion decrease in cash held in interest-bearing deposits reflecting
partial deployment of elevated liquidity. Loan growth was driven by a $6.6
billion increase in retail loans given growth in mortgage, auto and education,
partially offset by planned runoff of personal unsecured installment loans.
Commercial loans decreased $304 million as growth was more than offset by a $4.2
billion reduction in PPP loans.

Average deposits of $155.1 billion increased $8.4 billion, or 6%, from the first
quarter of 2021, reflecting growth in lower cost deposits and the $2.9 billion
impact of the HSBC transaction, partially offset by decreases in money market
and term. Average total borrowed funds of $6.1 billion decreased $2.4 billion
from the first quarter of 2021, given the pay down of senior debt. Total
borrowed funds costs of $41 million decreased $8 million from the first quarter
of 2021. The total borrowed funds cost of 2.66% increased 34 basis points from
2.32% in the first quarter of 2021.

Non-interest income

Table 3: Non-interest income

                                                                               Three Months Ended March 31,
(in millions)                                                                                             2022              2021            Change            Percent
Capital markets fees                                                                                        $93              $81             $12                  15  %
Service charges and fees                                                                                     98               99              (1)                 (1)
Mortgage banking fees                                                                                        69              165             (96)                (58)
Card fees                                                                                                    60               55               5                   9
Trust and investment services fees                                                                           61               58               3                   5
Letter of credit and loan fees                                                                               38               38               -                   -
Foreign exchange and derivative products                                                                     51               28              23                  82
Securities gains, net                                                                                         4                3               1                  33
Other income(1)                                                                                              24               15               9                  60
Noninterest income                                                                                         $498             $542            ($44)                 (8  %)

(1) Includes life insurance income held by the bank and other income for all periods presented.


Noninterest income decreased $44 million, or 8%, from the first quarter of 2021,
primarily reflecting lower mortgage banking fees partially offset by improved
capital markets fees, foreign exchange and derivative products revenue, and
other income.

•Lower mortgage banking fees are due to lower sales margins and lower production volumes.


•Companies we acquired in the second half of 2021 contributed $21 million of
capital market fees in the first quarter of 2022. Excluding these acquisitions,
capital markets fees reflect lower merger and acquisition advisory and
underwriting fees, partially offset by higher loan syndication fees.

•Record increase in foreign exchange and derivative products reflecting growth in interest rate and commodity hedging activities.

•The increase in other income mainly reflects the increase in investment income.


                                             Citizens Financial Group, Inc. | 11
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Non-interest expenses

Table 4: Non-interest expenses

                                                                                 Three Months Ended March 31,
(in millions)                                                                                               2022                2021            Change  

Percent

Salaries and employee benefits                                                                                $594               $548            $46                   8  %
Equipment and software                                                                                         150                152             (2)                 (1)
Outside services                                                                                               169                139             30                  22
Occupancy                                                                                                       83                 88             (5)                 (6)
Other operating expense                                                                                        110                 91             19                  21
Noninterest expense                                                                                         $1,106             $1,018            $88                   9  %


Noninterest expense increased $88 million, or 9%, compared to the first quarter
of 2021. On an Underlying basis, noninterest expense of $1.1 billion increased
$60 million, or 6%, reflecting higher salaries and employee benefits given merit
increases, and other operating expense associated with increased travel and
advertising costs, partially offset by the benefit of efficiency initiatives.

Provision for credit losses


The provision for credit losses is the result of a detailed analysis performed
to estimate our ACL. The total provision for credit losses includes the
provision for loan and lease losses and the provision for unfunded commitments.
Refer to "-Analysis of Financial Condition - Allowance for Credit Losses and
Nonaccrual Loans and Leases" for more information.

Credit provision expense was $3 million for the first quarter of 2022, compared
to a credit provision benefit of $140 million in the first quarter of 2021,
reflecting strong economic growth that began in the fourth quarter of 2020 and
continued solid credit performance. Underlying credit provision benefit of $21
million in the first quarter of 2022 excludes the "double count" of the $24
million day-one CECL provision expense tied to the HSBC transaction.

income tax expense


Income tax expense of $116 million for the first quarter of 2022 decreased $54
million from $170 million in the first quarter of 2021 due to decreased taxable
income. The effective income tax rate decreased to 21.7% in the first quarter of
2022 from 21.8% in the first quarter of 2021, primarily driven by the increased
benefit of tax-advantaged investments on lower pre-tax income.

Operating sectors


We have two business operating segments: Consumer Banking and Commercial
Banking. Segment results are derived by specifically attributing managed assets,
liabilities, capital and related revenues, provision for credit losses, which at
the segment level is equal to net charge-offs, and other expenses. The residual
difference between the consolidated provision for credit losses and the business
operating segments' net charge-offs is reflected in Other.

Non-segment operations are classified as Other and include assets, liabilities,
capital, revenues, provision for credit losses, expenses and income tax expense
not attributed to our Consumer or Commercial Banking segments as well as
treasury and community development. In addition, for impairment testing
purposes, we allocate all goodwill to our Consumer Banking and Commercial
Banking reporting units.

There have been no significant changes in our methodologies used to allocate
items to our business operating segments as described in "-Results of Operations
- Business Operating Segments" in our 2021 Form 10-K other than the change
relative to our FTP methodology. See Note 17 for additional information.

                                             Citizens Financial Group, Inc. | 12
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The following table presents certain financial data of our business operating
segments. Total business operating segment financial results differ from total
consolidated financial results. These differences are reflected in Other
non-segment operations. See Note 17 for additional information.

Table 5: Selected Financial Data for Lines of Business

                                                                    Consumer Banking                                                  Commercial Banking
                                                              Three Months Ended March 31,                                       Three Months Ended March 31,
(dollars in millions)                                   2022                                 2021                                2022                      2021
Net interest income                                        $857                                 $863                                $416                      $421
Noninterest income                                          257                                  351                                 213                       170
Total revenue                                             1,114                                1,214                                 629                       591
Noninterest expense                                         784                                  750                                 272                       227
Profit before credit losses                                 330                                  464                                 357                       364
Net charge-offs                                              49                                   59                                  12                       101
Income before income tax expense                            281                                  405                                 345                       263
Income tax expense                                           72                                  103                                  74                        52
Net income                                                 $209                                 $302                                $271                      $211
Average Balances:
Total assets                                            $77,551                              $75,283                             $61,118                   $57,738
Total loans and leases(1)                                73,233                               70,188                              58,007                    54,813
Deposits                                                104,663                               97,180                              44,520                    43,974
Interest-earning assets                                  74,052                               71,135                              58,312                    55,175


(1) Includes LHFS.

Consumer Banking

Net interest income of $857 million decreased $6 million, or 1%, from the first
quarter of 2021, driven by a reduced benefit from PPP loan forgiveness,
partially offset by loan growth, including the impacts from the HSBC
transaction. Average loans increased $3.0 billion driven by higher residential
mortgages, including approximately $480 million from the HSBC transaction,
automobile and education, partially offset by the impact of the reduction in PPP
loans and planned runoff of personal unsecured installment loans. Deposits
increased $7.5 billion, or 8%, including the $2.9 billion impact of the HSBC
transaction. Growth in demand, checking with interest and savings were partially
offset by decreases in money market and term.

Noninterest income decreased $94 million, or 27%, from the first quarter of
2021, driven by lower mortgage banking fees reflecting lower gain-on-sale
margins and production volumes. This decrease was partially offset by higher
trust and investment services fees driven by an increase in assets under
management from strong net inflows and higher equity market levels, and higher
card fees driven by higher debit and credit card volumes.

Non-interest expenses increased $34 millionor 5%, compared to the first quarter of 2021, reflecting higher salaries and benefits given merit increases, as well as higher other operating expenses associated with higher travel and advertising costs , partially offset by the benefits of efficiency initiatives.

Net imputations of $49 million decreases $10 millionor 17% as consumers continue to benefit from fiscal support provided during the pandemic, rapid job growth, and high values ​​of residential mortgage collateral and auto loans.

The Commercial Bank

Net interest income of $416 million decreases $5 millioni.e. 1%, from $421 million in the first quarter of 2021, due to lower returns on earning assets, partially offset by improved funding mix and deposit pricing.

Non-interest income of $213 million increased $43 millioni.e. 25%, from $170 million in the first quarter of 2021, driven by record foreign exchange and derivatives revenues reflecting an increase in client interest rate and commodity hedging activities and fee-driven capital markets fees higher loan syndication fees, partially offset by lower M&A advisory and underwriting fees.


Noninterest expense of $272 million increased $45 million, or 20%, from $227
million in the first quarter of 2021, reflecting higher salaries and employee
benefits given merit increases, as well as higher other operating expense
associated with increased travel and advertising costs, partially offset by the
benefit of efficiency initiatives.

                                             Citizens Financial Group, Inc. | 13
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Net imputations of $12 million decreases $89 millionor 88%, compared to the first quarter of 2021 given the strong economic growth that began in the fourth quarter of 2020 and continued strong credit performance.

ANALYSIS OF THE FINANCIAL SITUATION

Securities

Table 6: Amortized cost and fair value of AFS and HTM titles

                                                                        March 31, 2022                               December 31, 2021
                                                               Amortized                                      Amortized
(in millions)                                                    Cost                  Fair Value               Cost                 Fair Value
U.S. Treasury and other                                               $158                $154                    $11                     $11
State and political subdivisions                                         2                   2                      2                       2
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities             25,074              23,498                 24,607                  24,442
Other/non-agency                                                       412                 401                    397                     405
Total mortgage-backed securities                                    25,486              23,899                 25,004                  24,847

Collateralized loan obligations                                      1,276               1,264                  1,208                   1,207

Total available-for-sale debt securities, at fair value $26,922

            $25,319                $26,225                 $26,067
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities             $1,370              $1,355                 $1,505                  $1,557

Total mortgage-backed securities                                     1,370               1,355                  1,505                   1,557
Asset-backed securities                                                686                 656                    737                     732
  Total debt securities held to maturity                            $2,056              $2,011                 $2,242                  $2,289

Total available-for-sale and held-to-maturity debt securities

                                                           $28,978             $27,330                $28,467                 $28,356
Equity securities, at cost                                            $611                $611                   $624                    $624
Equity securities, at fair value                                       130                 130                    109                     109


Our securities portfolio is managed to maintain prudent levels of liquidity,
credit quality, and market risk while achieving returns that align with our
overall portfolio management strategy. The portfolio primarily includes high
quality, highly liquid investments reflecting our ongoing commitment to maintain
strong contingent liquidity levels and pledging capacity. U.S.
government-guaranteed notes and GSE-issued mortgage-backed securities represent
92% of the fair value of our debt securities portfolio holdings. Holdings backed
by mortgages dominate our portfolio and facilitate our ability to pledge those
securities to the FHLB for collateral purposes. For further discussion of the
liquidity coverage ratios, see "Regulation and Supervision - Liquidity
Requirements" in our 2021 Form 10-K.

The fair value of the AFS debt securities portfolio of $25.3 billion at March
31, 2022 decreased $748 million from $26.1 billion at December 31, 2021,
reflecting $697 million in portfolio growth offset by a $1.4 billion increase in
unrealized losses driven by higher rates. The decline in fair value of the HTM
debt securities portfolio of $278 million reflects $191 million from portfolio
runoff and $87 million due to higher rates.

As of March 31, 2022, the portfolio's average effective duration was 5.3 years
compared with 4.3 years as of December 31, 2021, as higher long-term rates drove
a decrease in both actual and projected securities prepayment speeds. We manage
our securities portfolio duration and convexity risk through asset selection and
securities structure, and maintain duration levels within our risk appetite in
the context of the broader interest rate risk framework and limits.

                                             Citizens Financial Group, Inc. | 14
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Loans and leases

Table 7: Composition of loans and leases, excluding LHFS (in millions)

                                             March 31, 2022              December 31, 2021             Change               Percent
Commercial and industrial(1)                                      $45,724                  $44,500                  $1,224                      3  %
Commercial real estate                                             14,268                   14,264                       4                      -
Leases                                                              1,529                    1,586                     (57)                    (4)
Total commercial                                                   61,521                   60,350                   1,171                      2
Residential mortgages                                              24,211                   22,822                   1,389                      6
Home equity                                                        12,264                   12,015                     249                      2
Automobile                                                         14,439                   14,549                    (110)                    (1)
Education                                                          13,306                   12,997                     309                      2
Other retail                                                        5,564                    5,430                     134                      2
Total retail                                                       69,784                   67,813                   1,971                      3
Total loans and leases                                           $131,305                 $128,163                  $3,142                      2  %


Total loans and leases increased $3.1 billion from $128.2 billion as of December
31, 2021, driven by 3% growth in retail, including the impact of the HSBC
transaction, as well as growth in mortgage, education and home equity, and 2%
growth in commercial.

Allowance for credit losses and unearned loans and leases


The ACL is a reserve to absorb estimated future credit losses in accordance with
GAAP. For additional information regarding the ACL, see Note 5 of this report,
and "-Critical Accounting Estimates - Allowance for Credit Losses" and Note 6 in
our 2021 Form 10-K.

The ACL of $1.9 billion to March 31, 2022 remained stable compared to December 31, 2021. For more information, see Note 5.

Table 8: ACL and associated coverage ratios by portfolio

                                                                 March 31, 2022                                         December 31, 2021
(in millions)                                   Loans and Leases      Allowance       Coverage           Loans and Leases    Allowance       Coverage
Allowance for Loan and Lease Losses
Commercial and industrial                                $45,724         $525              1.15  %              $44,500         $555              1.25  %
Commercial real estate                                    14,268          214              1.50                  14,264          220              1.54
Leases                                                     1,529           39              2.54                   1,586           46              2.92
Total commercial                                          61,521          778              1.26                  60,350          821              1.36
Residential mortgages                                     24,211          144              0.60                  22,822          144              0.63
Home equity                                               12,264           78              0.64                  12,015           82              0.69
Automobile                                                14,439          149              1.03                  14,549          154              1.05
Education                                                 13,306          321              2.41                  12,997          308              2.37
Other retail                                               5,564          250              4.49                   5,430          249              4.59
Total retail                                              69,784          942              1.35                  67,813          937              1.38
Total loans and leases                                  $131,305       $1,720              1.31  %             $128,163       $1,758              1.37  %
Allowance for Unfunded Lending Commitments
Commercial(1)                                                            $147              1.50  %                              $153              1.61  %
Retail(2)                                                                  11              1.37                                   23              1.42
   Total allowance for unfunded lending
commitments                                                               158                                                    176
Allowance for credit losses                             $131,305       $1,878              1.43  %             $128,163       $1,934              1.51  %

(1) The coverage ratio includes total trade provision for unfunded loan commitments and total trade provision for loan and lease losses in the numerator and total trade loans and leases in the denominator. (2) Coverage ratio includes total allowance for retail loans for unfunded loan commitments and total allowance for loan losses in the numerator and total retail loans in the denominator.


                                             Citizens Financial Group, Inc. | 15
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Table 9: Nonaccrual Loans and Leases
(dollars in millions)                            March 31, 2022        December 31, 2021             Change                Percent
Commercial and industrial                                $200                    $171                   $29                      17  %
Commercial real estate                                     11                      11                     -                       -
Leases                                                      1                       1                     -                       -
Total commercial                                          212                     183                    29                      16
Residential mortgages(1)                                  243                     201                    42                      21
Home equity                                               239                     220                    19                       9
Automobile                                                 52                      55                    (3)                     (5)
Education                                                  23                      23                     -                       -
Other retail                                               20                      20                     -                       -
Total retail                                              577                     519                    58                      11
Nonaccrual loans and leases                              $789                    $702                   $87                      12  %
Nonaccrual loans and leases to total loans and
leases                                                   0.60  %                 0.55  %                  5   bps
Allowance for loan and lease losses to
nonaccrual loans and leases                               218                     251                (3,264)
Allowance for credit losses to nonaccrual loans
and leases                                                238                     276                (3,769)


(1) Loans fully or partially guaranteed by the FHA, Virginia and USDA are classified as acquired.


Nonaccrual loans and leases of $789 million as of March 31, 2022 increased $87
million, or 12%, from December 31, 2021, primarily due to residential real
estate secured loans exiting forbearance. Total commercial nonaccrual loans and
leases were 0.3% of the commercial portfolio as of March 31, 2022 and December
31, 2021.

Table 10: Ratio of Net Charges to Average Loans and Leases

                                                                                       Three Months Ended March 31,
                                                                  2022                                                             2021
(dollars in millions)                      Net Charge-Offs      Average Balance       Ratio                 Net Charge-Offs        Average Balance       Ratio
Commercial and industrial                              $11         $44,947               0.10  %                          $77         $44,287               0.70  %
Commercial real estate                                   -          14,066                  -                              26          14,675               0.73
Leases                                                   -           1,560               0.10                               1           1,915               0.26
Total commercial                                        11          60,573               0.08                             104          60,877               0.69
Residential mortgages                                    -          23,461                  -                              (1)         19,388              (0.01)
Home equity                                             (9)         12,124              (0.32)                             (7)         12,001              (0.25)
Automobile                                               6          14,534               0.18                              11          12,229               0.35
Education                                               16          13,034               0.49                               7          12,436               0.24
Other retail                                            35           5,428               2.61                              44           5,916               3.00
Total retail                                            48          68,581               0.28                              54          61,970               0.35
Total loans and leases                                 $59        $129,154               0.19  %                         $158        $122,847               0.52  %


First quarter 2022 NCOs of $59 million decreased $99 million, or 63%, from $158
million in the first quarter of 2021, driven by decreases in commercial and
retail of $93 million and $6 million, respectively. First quarter 2022
annualized net charge-offs of 0.19% of average loans and leases were down 33
basis points from first quarter of 2021.

Retail NCOs declined as consumers continue to benefit from the fiscal support
provided during the pandemic, the rapid growth in jobs, and elevated residential
mortgage and auto loan collateral values. Commercial NCOs decreased given the
strong economic growth that began in the fourth quarter of 2020 and continued
solid credit performance. However, we continue to assess risks to the
macroeconomic environment. While the outlook is positive, uncertainty exists
given changing monetary and fiscal policies, the recent surge in inflation and
higher inflation expectations, labor shortages, continuing supply-chain
challenges, and possible consequences from Russia's invasion of Ukraine.

                                             Citizens Financial Group, Inc. | 16
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Commercial loan asset quality


Our commercial portfolio consists of traditional commercial and industrial
loans, commercial leases and commercial real estate loans. The portfolio is
predominantly focused on customers in our footprint and adjacent states in which
we have a physical presence where our local delivery model provides for strong
client connectivity. Additionally, we also do business in certain specialized
industry sectors on a national basis. As discussed in our 2021 Form 10-K, we
utilize regulatory classification ratings to monitor credit quality for
commercial loans and leases.

Table 11: Commercial loans and leases by regulatory classification

                                                                                              March 31, 2022
                                                                                                  Criticized
(in millions)                                                  Pass            Special Mention       Substandard       Doubtful          Total
Commercial and industrial                                       $43,594                   $845         $1,109             $176          $45,724
Commercial real estate                                           13,273                    512            472               11           14,268
Leases                                                            1,509                      8             11                1            1,529
Total commercial                                                $58,376                 $1,365         $1,592             $188          $61,521



                                                                                      December 31, 2021
                                                                                          Criticized
(in millions)                                           Pass          Special Mention       Substandard        Doubtful          Total
Commercial and industrial                               $42,254             $809               $1,294             $143          $44,500
Commercial real estate                                   13,319              406                  528               11           14,264
Leases                                                    1,512               49                   24                1            1,586
Total commercial                                        $57,085           $1,264               $1,846             $155          $60,350


Total commercial criticized balances of $3.1 billion as of March 31, 2022
decreased $120 million compared with December 31, 2021. Commercial criticized as
a percent of total commercial of 5.1% at March 31, 2022 decreased from 5.4% at
December 31, 2021.

Commercial and industrial criticized balances of $2.1 billion, or 4.7% of the
total commercial and industrial loan portfolio as of March 31, 2022, decreased
from $2.2 billion, or 5.0%, as of December 31, 2021. The percentage decrease was
driven by an increase in total commercial and industrial net book balances, with
a modest decrease in the criticized net book balances primarily attributable to
loan payoffs. Commercial and industrial criticized loans represented 68% of
total criticized loans as of March 31, 2022 compared to 69% as of December 31,
2021.

Commercial real estate criticized balances of $995 million, or 7.0% of the
commercial real estate portfolio, increased from $945 million, or 6.6% as of
December 31, 2021. The increase was primarily driven by downgrades from lowest
pass for a limited number of higher net book balance loans. Loss content,
however, remained stable. Commercial real estate accounted for 32% of total
criticized loans as of March 31, 2022 compared to 29% as of December 31, 2021.

                                             Citizens Financial Group, Inc. | 17
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Table 12: Commercial loans and leases by sector of activity

                                                                          March 31, 2022                          December 31, 2021
                                                                                           % of                                   % of
                                                                                       Total Loans                            Total Loans
(dollars in millions)                                                 Balance           and Leases              Balance        and Leases
Finance and insurance                                                       $9,610              7  %               $9,301              7  %
Health, pharma, and social assistance                                        2,862              2                   2,912              2
Accommodation and food services                                              3,442              3                   3,438              3
Professional, scientific, and technical services                             2,836              2                   2,665              2
Other manufacturing                                                          4,162              3                   4,087              3
Technology                                                                   4,183              3                   4,220              3
Retail trade                                                                 2,400              2                   2,237              2
Energy and related                                                           2,044              2                   2,017              2
Wholesale trade                                                              2,678              2                   2,358              2
Arts, entertainment, and recreation                                          1,107              1                   1,189              1
Other services                                                               1,911              2                   2,051              2
Administrative and waste management services                                 1,424              1                   1,396              1
Transportation and warehousing                                               1,302              1                   1,147              1
Consumer products manufacturing                                              1,303              1                   1,192              1
Automotive                                                                   1,208              1                   1,172              1
Educational services                                                           553              -                     573              -
Chemicals                                                                      939              1                     896              1
Real estate and rental and leasing                                             968              1                     739              -
All other(1)                                                                   375              -                     123              -
Total commercial and industrial                                             45,307             35                  43,713             34
Real estate and rental and leasing                                          12,807             10                  12,773             10
Accommodation and food services                                                615              -                     605              -
Finance and insurance                                                          624              1                     624              1
All other(1)                                                                   222              -                     262              -
Total commercial real estate                                                14,268             11                  14,264             11
Total leases                                                                 1,529              1                   1,586              1
Total commercial(2)                                                        $61,104             47  %              $59,563             46  %

(1) Deferred charges and costs are presented in All Others. (2) Excluding PPP loans of $417 million and $787 million from March 31, 2022 and
December 31, 2021respectively.

Retail Lending Asset Quality


For retail loans, we utilize credit scores provided by FICO, which are generally
refreshed on a quarterly basis, and the loan's payment and delinquency status to
monitor credit quality. Management believes FICO credit scores are considered
the strongest indicator of credit losses over the contractual life of the loan
as the scores are based on current and historical national industry-wide
consumer level credit performance data, and assist management in predicting the
borrower's future payment performance. The largest portion of the retail
portfolio is represented by borrowers located in the New England, Mid-Atlantic
and Midwest regions, although we have continued to lend selectively in areas
outside the footprint primarily in auto finance and education lending.

                                             Citizens Financial Group, Inc. | 18
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Table 13: Analysis of the personal loan portfolio

                                                             March 31, 2022                                                                 December 31, 2021
                                                      Days Past Due and Accruing                                                     Days Past Due and Accruing
(dollars in millions)              Current         30-59        60-89         90+          Nonaccrual               Current       30-59        60-89         90+          Nonaccrual
Residential mortgages(1)               95.32  %      0.24  %      0.17  %      3.27  %             1.00  %            96.03  %      0.45  %      0.23  %      2.41  %             0.88  %
Home equity                            97.60         0.34         0.11            -                1.95               97.75         0.32         0.10            -                1.83
Automobile                             98.60         0.83         0.21            -                0.36               98.45         0.90         0.27            -                0.38
Education                              99.53         0.20         0.08         0.02                0.17               99.45         0.26         0.10         0.01                0.18
Other retail                           97.89         1.10         0.40         0.25                0.36               98.18         0.74         0.42         0.29                0.37
Total retail                           97.40  %      0.44  %      0.17  %      1.16  %             0.83  %            97.69  %      0.51  %      0.20  %      0.83  %             0.77  %


(1) 90+ days past due and accruing includes $792 million and $544 million of
loans fully or partially guaranteed by the FHA, VA, and USDA at March 31, 2022
and December 31, 2021, respectively.

For more information on the aging of accrued and unaccrued personal loans, see Note 5.

Table 14: Retail Asset Quality Metrics

                                                                   March 31, 2022        December 31, 2021
Average refreshed FICO for total portfolio                                  768                      768
CLTV ratio for secured real estate(1)                                        54  %                    56  %
Nonaccrual retail loans as a percentage of total retail                    0.83  %                  0.77  %


(1) The real estate secured portfolio CLTV is calculated as the mortgage and
second lien loan balance divided by the most recently available value of the
property.

Distressed Debt Restructurings


In the first quarter of 2020, we adopted the CARES Act and interagency guidance
issued by the bank regulatory agencies which provide that COVID-19-related
modifications to retail and commercial loans that met certain eligibility
criteria are exempt from classification as a TDR. We generally do not consider
payment deferrals and forbearance plans established due to the COVID-19 pandemic
and under the CARES Act to be TDRs. Relief provisions granted under the CARES
Act, including the TDR classification exemption for certain eligible loans,
expired on December 31, 2021.

For more information on TORs, see Note 6 of our 2021 Form 10-K.

Table 15: Restructurings of distressed debt at maturity and not at maturity

                                                                                            March 31, 2022
                                                                               As a % of Accruing TDRs
                                                                           30-89 Days           90+ Days Past
(dollars in millions)                             Accruing                  Past Due                 Due                Nonaccrual               Total
Commercial and industrial                                 $189                    0.2  %                  -  %               $80                   $269
Commercial real estate                                       1                      -                     -                    9                     10
Total commercial                                           190                    0.2                     -                   89                    279
Residential mortgages(1)                                   479                    2.5                  27.5                   78                    557
Home equity                                                169                    0.3                     -                   91                    260
Automobile                                                   8                    0.2                     -                   17                     25
Education                                                  110                    0.4                   0.1                   11                    121
Other retail                                                18                    0.2                     -                    2                     20
Total retail                                               784                    3.6                  27.6                  199                    983
Total                                                     $974                    3.8  %               27.6  %              $288                 $1,262


                                             Citizens Financial Group, Inc. | 19
--------------------------------------------------------------------------------
                                                                                           December 31, 2021
                                                                              As a % of Accruing TDRs
                                                                          30-89 Days           90+ Days Past
(dollars in millions)                              Accruing                Past Due                 Due                Nonaccrual               Total
Commercial and industrial                                $196                      -  %                  -  %               $74                   $270
Commercial real estate                                      1                      -                     -                    9                     10
Total commercial                                          197                      -                     -                   83                    280
Residential mortgages(1)                                  295              
     2.9                  12.0                   42                    337
Home equity                                               183                    0.6                     -                   74                    257
Automobile                                                  8                    0.2                     -                   22                     30
Education                                                 112                    0.5                   0.1                   11                    123
Other retail                                               20                    0.2                     -                    2                     22
Total retail                                              618                    4.5                  12.1                  151                    769
Total                                                    $815                    4.5  %               12.1  %              $234                 $1,049


(1) Includes $265 million and $98 million in 90+ days past due and accruing that
are fully or partially guaranteed by the FHA, VA, and USDA at March 31, 2022 and
December 31, 2021, respectively.

Deposits


Table 16: Composition of Deposits
(in millions)                                       March 31, 2022            December 31, 2021             Change              Percent
Demand                                                 $50,113                    $49,443                     $670                    1  %
Money market                                            45,342                     47,216                   (1,874)                  (4)
Checking with interest                                  32,417                     30,409                    2,008                    7
Savings                                                 26,104                     22,030                    4,074                   18
Term                                                     4,800                      5,263                     (463)                  (9)
Total deposits                                        $158,776                   $154,361                   $4,415                    3  %


Total deposits as of March 31, 2022 increased $4.4 billion, or 3%, to $158.8
billion, from $154.4 billion as of December 31, 2021, driven by the $6.3 billion
impact of the HSBC transaction, partially offset by seasonal impacts as well as
continued normalization from elevated liquidity levels. Citizens Access®, our
national digital platform, had $4.2 billion in deposits as of March 31, 2022,
down from $4.4 billion as of December 31, 2021.

Borrowed funds


Long-term borrowed funds of $5.9 billion as of March 31, 2022 decreased $1.0
billion from December 31, 2021 driven by the redemption of CBNA senior notes
during the quarter. For more information regarding our borrowed funds, see
"-Liquidity" and Note 8.

CAPITAL AND REGULATORY MATTERS


As a bank holding company and a financial holding company, we are subject to
regulation and supervision by the FRB. Our banking subsidiary, CBNA, is a
national banking association primarily regulated by the OCC. Our regulation and
supervision continues to evolve as the legal and regulatory frameworks governing
our operations continue to change. For more information, see "Regulation and
Supervision" in our 2021 Form 10-K.

Capital adequacy process


Our assessment of capital adequacy begins with our board-approved risk appetite
and risk management framework. This framework provides for the identification,
measurement and management of material risks. There have been no significant
changes to our capital adequacy risk appetite and risk management framework as
described in "-Capital and Regulatory Matters" in our 2021 Form 10-K.

Under the FRB's Tailoring Rules, Category IV firms, such as us, are subject to
biennial supervisory stress testing and are exempt from company-run stress
testing and related disclosure requirements. The FRB supervises Category IV
firms on an ongoing basis, including evaluation of the capital adequacy and
capital planning processes during off-cycle years. Annually, the FRB requires us
to submit a capital plan approved by our board of directors or one of its
committees. Our annual capital plan is due each year in April. We submitted our
2022 Capital Plan to the FRB on April 4, 2022. For more information, see the
"Tailoring of Prudential Requirements" section in Item 1 of our 2021 Form 10-K.

                                             Citizens Financial Group, Inc. | 20
--------------------------------------------------------------------------------

Under the Crisis Capital Buffer (“SCB”), the FRB will not object to capital plans on quantitative grounds and each company is required to maintain capital ratios above the sum of its minimum requirements and SCB to avoid restrictions on capital distributions and discretionary bonuses. Payments.


For Category IV firms, like us, the SCB will be re-calibrated with each biennial
supervisory stress test and updated annually to reflect our planned common stock
dividends. In addition, Category IV firms may elect to participate in the
supervisory stress test and receive an updated SCB requirement in a year in
which they are not subject to the supervisory stress test. Our SCB requirement
effective October 1, 2021, through September 30, 2022, is 3.4%. We are subject
to the 2022 supervisory stress test conducted by the FRB and expect to receive
an updated SCB from the FRB later this year. On March 22, 2022, the FRB approved
our application to acquire Investors and indicated that it will use the 2023
stress test to recalculate our SCB to incorporate the effects of the Investors
acquisition into our capital requirements.

Regulations relating to capital planning, regulatory reporting, stress testing
and capital buffer requirements applicable to firms like us are presently
subject to rule-making and potential further guidance and interpretation by the
applicable federal regulators. We will continue to evaluate the impact of these
and any other prudential regulatory changes, including their potential resultant
changes in our regulatory and compliance costs and expenses.

For more information, see the “Regulation and Oversight” and “-Capital and Regulatory Matters” sections in our 2021 Form 10-K.

Regulatory capital ratios and capital composition


Under the current U.S. Basel III capital framework, we and our banking
subsidiary, CBNA, must meet the following specific minimum requirements: CET1
capital ratio of 4.5%, tier 1 capital ratio of 6.0%, total capital ratio of 8.0%
and tier 1 leverage ratio of 4.0%. As a bank holding company, our SCB of 3.4% is
imposed on top of the three minimum risk-based capital ratios listed above and a
CCB of 2.5% is imposed on top of the three minimum risk-based capital ratios
listed above for our banking subsidiary.

Under the U.S. Basel III rules, the CET1 deduction threshold for MSRs, certain
deferred tax assets and investments in the capital of unconsolidated financial
institutions is 25%. As of March 31, 2022, we did not meet the threshold for
these additional capital deductions. MSRs or certain deferred tax assets not
deducted from CET1 capital are assigned a 250% risk weight and investments in
the capital of unconsolidated financial institutions not deducted from CET1
capital are assigned an exposure category risk weight.

In reaction to the COVID-19 pandemic, the FRB and the other federal banking
regulators adopted a final rule relative to regulatory capital treatment of ACL
under CECL. This rule allows electing banking organizations to delay the
estimated impact of CECL on regulatory capital for a two-year period ending
December 31, 2021, followed by a three-year transition period ending December
31, 2024. The three-year transition period will phase-in the aggregate amount of
capital benefit provided during the initial two-year delay. On December 31,
2021, the aggregate amount of capital benefit was $384 million. The reduction in
the capital benefit in 2022 is $96 million, or 6 basis points.

For additional discussion of the U.S. Basel III capital framework and its
related application, see "Regulation and Supervision" in our 2021 Form 10-K. The
table below presents our actual regulatory capital ratios under the U.S. Basel
III Standardized rules:

Table 17: Regulatory capital ratios under the WE Basel III standardized rules

                                                           March 31, 2022                            December 31, 2021            Required Minimum
(in millions, except ratio data)                       Amount               Ratio                  Amount            Ratio        Capital Ratios(1)
  CET1 capital                                              $15,643             9.7  %               $15,656             9.9  %                7.9  %
  Tier 1 capital                                             17,657            10.9                   17,670            11.1                   9.4
  Total capital                                              20,301            12.5                   20,244            12.7                  11.4
  Tier 1 leverage                                            17,657             9.6                   17,670             9.7                   4.0
  Risk-weighted assets                                      161,859                                  158,831
  Quarterly adjusted average assets                         183,089                                  181,800


(1) Required "Minimum Capital Ratios" are: CET1 capital of 4.5%; Tier 1 capital
of 6.0%; Total capital of 8.0%; and Tier 1 leverage of 4.0%. "Minimum Capital
Ratios" also include a SCB of 3.4%; N/A to Tier 1 leverage.
                                             Citizens Financial Group, Inc. | 21
--------------------------------------------------------------------------------

At March 31, 2022, our CET1 capital, tier 1 capital and total capital ratios
were 9.7%, 10.9% and 12.5%, respectively, as compared with 9.9%, 11.1% and
12.7%, respectively, as of December 31, 2021. The CET1 and tier 1 capital ratios
decreased driven by $3.0 billion of RWA growth, dividends as described in
"-Capital Transactions" below, higher estimated goodwill and intangibles related
to the HSBC transaction and a decrease in the modified CECL transition amount as
a result of entering the CECL three-year transition period, partially offset by
net income for the three months ended March 31, 2022. The total capital ratio
decreased due to the changes in the CET1 capital ratio described above and lower
AACL partially offset by a reduction in the modified AACL transition amount as a
result of entering the CECL three-year transition period. At March 31, 2022, our
CET1 capital, tier 1 capital and total capital ratios were approximately 180
basis points, 150 basis points and 110 basis points, respectively, above their
regulatory minimums plus our SCB. All ratios remained well above the U.S. Basel
III minimums.

Both the Company and CBNA are subject to the standardized approach for
determining RWA. At March 31, 2022 RWA totaled $161.9 billion, up $3.0 billion
from December 31, 2021, driven by higher commercial and consumer loans including
higher home lending loans resulting from the HSBC transaction, MSRs, derivative
valuations and market risk, partially offset by lower loans held for sale and
commercial commitments.

From March 31, 2022the Tier 1 leverage ratio was 9.6%, compared to 9.7% at
December 31, 2021driven by an increase in quarterly adjusted average assets of
$1.3 billion and slightly lower Tier 1 capital.

© Edgar Online, source Previews

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CFPB seeks information on ‘unwanted fees’ charged by providers of consumer financial products or services | Hudson Cook, LLP http://chance-for-rosi.org/cfpb-seeks-information-on-unwanted-fees-charged-by-providers-of-consumer-financial-products-or-services-hudson-cook-llp/ Mon, 02 May 2022 21:14:44 +0000 http://chance-for-rosi.org/cfpb-seeks-information-on-unwanted-fees-charged-by-providers-of-consumer-financial-products-or-services-hudson-cook-llp/

On January 26, the Consumer Financial Protection Bureau issued a “Request for Information Regarding Fees Charged by Providers of Consumer Financial Products or Services.” In a contemporary statement, CFPB Director Rohit Chopra described the request for information as the start of “a new effort to help American families save billions of dollars in unwanted fees in their financial lives.” The request for information seeks public comment on the impact of these “junk fees” on individuals (especially seniors, students, the military, people of color, and low-income consumers) and solicits feedback from social service organizations, consumer advocacy organizations, assisting attorneys, academics and researchers, small businesses, financial institutions, and state and local government officials.

As part of the request for information, the CFPB identified as points of attention:

  • If you are a consumer, please let us know your experiences with fees associated with your bank, credit union, prepaid card account, credit card, mortgage, loan, or payment transfer, including: (a) charges for things you thought were covered by the base price of a product or service; (b) unexpected charges for a product or service; (c) charges that appeared too high for the purported service; and (d) charges for which it was not clear why they were charged.
  • What types of fees for financial products or services hide the true cost of the product or service by not being included in the original price?
  • What charges exceed the cost to the entity that the charge is intended to cover? For example, is the amount charged for the NSF check fee necessary to cover the cost of processing a returned check and the associated losses to the depository institution?
  • Which businesses or marketplaces derive significant revenue from return fees or consumer costs that are not factored into the list price?
  • What are the barriers, if any, to incorporating fees into the initial prices for which consumers buy? How can this vary depending on the type of fee?
  • What data and evidence exists on how consumers view return costs, both inside and outside of financial services?
  • What data and evidence exists that suggests consumers do or do not understand fee structures disclosed in fine print or boilerplate contracts?
  • What data and evidence exists that suggests consumers do or do not make fee-based decisions, even if they are well disclosed and understood?
  • What oversight and/or policy tools should the CFPB use to deal with escalating excessive fees or fees that divert revenue from the original price?

The RFI originally set a deadline for comments to be provided no later than March 31.

However, on March 25, the CFPB extended the deadline to April 11 and announced that it had already received 25,000 comments.

In a February 2 blog post, the CFPB described “junk fees” as fees that “take many different forms, including fees for late penalties, overdrafts, returns, use of an out-of-network ATM, money transfers, inactivity, etc.” The blog post further identified the following “common unwanted charges”:

  • fees for lack of money (overdraft fees and NSF fees);
  • late fee;
  • fees to pay your bill (convenience fee);
  • prepaid card fees; and
  • closing costs and home buying costs.

In additional information provided as part of the RFI, the CFPB characterized the imposition of “hidden return fees”, which are “mandatory or quasi-mandatory”, as an anti-competitive tactic intended to “encourage consumers to make purchasing decisions based on a perceived lower price.” In support of its position, the CFPB noted that:

  • overdraft and NSF fees topped $15.4 billion in 2019, compared to just $1 billion in account maintenance fees;
  • fees represent about 20% of the total cost of credit cards (including $14 billion in late fees);
  • convenience fees remain common, despite a 2017 CFPB bulletin on unfair, deceptive, and abusive acts or practices (and violations of the Fair Debt Collection Practices Act) regarding telephone payment fees; and
  • in the context of residential mortgage transactions, “monthly property inspection fees, new title fees, legal fees, appraisals and appraisals, broker price notices, forced insurance, foreclosure and various unspecified “corporate advances” can all cost a homeowner dearly out of a home.

Although the request for information relates to credit cards, residential mortgages and fees charged by financial institutions in relation to deposit accounts, it is clear that the CFPB’s field of interest is much broader than that. The CFPB explicitly states that it is “interested in other loan origination and servicing fees, including for student loans, auto loans, installment loans, payday loans and other types of loans “. Therefore, while sales finance companies and installment lenders are not the immediate target of the CFPB’s investigation into fees charged in connection with financial services, we believe that these creditors should anticipate scrutiny by the CFPB of these practices and the future development of rules governing origination and creditor service fees. of all types. The information request also indicates, as expected, that Director Chopra plans to use the CFPB’s extensive oversight and review functions to aggressively regulate creditors and their financial products.

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The CURO Group (CURO) will publish its results on Monday http://chance-for-rosi.org/the-curo-group-curo-will-publish-its-results-on-monday/ Sat, 30 Apr 2022 19:35:44 +0000 http://chance-for-rosi.org/the-curo-group-curo-will-publish-its-results-on-monday/

CURO Group (NYSE: CURO – Get a rating) will release its earnings data after the market closes on Monday, May 2. Analysts expect CURO Group to post earnings of $0.11 per share for the quarter.

CURO Group (NYSE: CURO – Get a rating) last announced its results on Tuesday, February 8. The company reported ($0.39) earnings per share for the quarter, beating analyst consensus estimates of ($0.42) by $0.03. The CURO Group achieved a net margin of 7.25% and a return on equity of 15.71%. The company posted revenue of $224.32 million in the quarter, versus a consensus estimate of $221.96 million. In the same quarter last year, the company made earnings per share of $0.14. On average, analysts expect CURO Group to post EPS of $2 for the current fiscal year and EPS of $3 for the next fiscal year.

NYSE CURO shares opened at $11.50 on Friday. The CURO group has a 12-month low of $10.56 and a 12-month high of $20.10. The company has a fifty-day simple moving average of $12.44 and a 200-day simple moving average of $14.99. The company has a market capitalization of $462.78 million, a PE ratio of 9.27 and a beta of 2.67. The company has a quick ratio of 5.07, a current ratio of 5.07 and a debt ratio of 12.14.

(A d)

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The company also recently announced a quarterly dividend, which was paid on Tuesday, March 1. Investors of record on Friday, February 18 received a dividend of $0.11 per share. This represents a dividend of $0.44 on an annualized basis and a yield of 3.83%. The ex-dividend date was Thursday, February 17. The CURO Group’s dividend payout ratio is currently 35.48%.

Several hedge funds and other institutional investors have recently changed their holdings in the company. BlackRock Inc. increased its holdings of CURO Group shares by 5.8% during the fourth quarter. BlackRock Inc. now owns 1,409,824 shares of the company valued at $22,571,000 after purchasing an additional 77,191 shares in the last quarter. State Street Corp increased its holdings of CURO Group stock by 10.1% during the fourth quarter. State Street Corp now owns 366,401 shares of the company valued at $5,866,000 after purchasing an additional 33,733 shares in the last quarter. Geode Capital Management LLC increased its holdings of CURO Group shares by 9.2% during the fourth quarter. Geode Capital Management LLC now owns 332,849 shares of the company valued at $5,328,000 after purchasing an additional 27,997 shares in the last quarter. Bank of New York Mellon Corp increased its holdings of CURO Group shares by 8.9% during the third quarter. Bank of New York Mellon Corp now owns 256,811 shares of the company valued at $4,450,000 after buying 21,088 additional shares in the last quarter. Finally, Morgan Stanley increased its holdings of CURO Group shares by 406.5% during the third quarter. Morgan Stanley now owns 197,203 shares of the company valued at $3,417,000 after buying an additional 158,268 shares in the last quarter. Hedge funds and other institutional investors own 38.78% of the company’s shares.

A number of brokerages have weighed in on CURO recently. Jefferies Financial Group began covering CURO Group shares in a research note on Thursday, Dec. 30. They set a “buy” rating and a target price of $25.00 for the business. Zacks Investment Research cut shares of CURO Group from a “strong buy” rating to a “hold” rating in a report on Wednesday, January 19. Finally, Credit Suisse Group cut its price target on CURO Group shares from $29.00 to $26.00 and set an “outperform” rating for the company in a Thursday, Dec. 30 report.

About CURO Group (Get a rating)

CURO Group Holdings Corp., together with its subsidiaries, offers consumer credit products in the United States and Canada. The Company offers unsecured installment loans, secured installment loans, open-ended loans and one-time payment loans, as well as ancillary financial products, including check cashing, proprietary reloadable prepaid debit cards, demand deposit accounts, credit protection insurance, retail installment sales. , and money transfer services.

See also

Earnings History for the CURO Group (NYSE: CURO)

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