Core Insights - GAMCO Investors, led by Mario Gabelli, has made significant reductions in its equity portfolio, indicating a selective trimming of positions where valuations have increased or catalysts have played out [1] - The firm executed several full exits this quarter, reflecting a continued streamlining of the portfolio and reallocating capital towards higher-conviction opportunities [2] Reductions by Percentage Change - 3D Systems Corp (DDD) saw a reduction of 82.14%, with GAMCO selling 46,000 shares, leaving only 10,000, indicating concerns about the 3D printing sector's adoption and profitability [5] - Blue Owl Capital Inc (OWL) was reduced by 80.12%, with 222,080 shares trimmed, suggesting a reassessment of alternative asset managers amid changing market conditions [5] - Diamondback Energy Inc (FANG) experienced a 74.74% reduction, with 7,549 shares sold, likely reflecting profit-taking after strong sector performance [5] - Illinois Tool Works (ITW) was reduced by 58.99%, with 7,020 shares trimmed, possibly indicating concerns about valuation or cyclical demand [5] - AllianceBernstein Holding LP (AB) saw a reduction of 53.89%, with 38,800 shares sold, reflecting tactical portfolio management amid earnings pressures [5] Full Exits - Notable full exits included Sandy Spring Bancorp ($6.15M), Intra-Cellular Therapies ($5.0M), and Lions Gate Entertainment ($3.6M), indicating a disciplined approach to realizing gains [2] - Other significant exits included Patterson Companies, Beacon Roofing Supply, and Barrick Gold, highlighting a diverse range of sectors from which GAMCO has divested [2]

Core Insights - Arista Advanced Pet Care has successfully launched its flagship specialty referral and 24/7 emergency hospital in Sandy Springs, GA, which opened in April 2025 [1] - The hospital has quickly established itself as a trusted resource for pet families in the metro Atlanta area [1] - The project was supported by local design firm Peacock Partnership, emphasizing the importance of collaboration in its development [1] Company Overview - Arista Advanced Pet Care focuses on providing specialized veterinary services, including emergency care, to enhance pet health and well-being [1] - The Sandy Springs hospital is strategically located off I-285, making it accessible to a wide range of pet owners in the region [1] Industry Context - The establishment of the Sandy Springs hospital reflects a growing demand for specialized pet care services in urban areas [1] - The collaboration with local firms like Peacock Partnership highlights the trend of community involvement in healthcare facility development [1]

Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $46.9 million, with diluted earnings per common share at $0.52. Adjusted operating earnings were $51.6 million or $0.57 per diluted common share, resulting in an adjusted operating return on tangible common equity of 13.2% and adjusted operating return on assets of 0.90% [25][32] - The tax equivalent net interest income increased to $187.9 million, up approximately $8.88 million from the previous quarter, driven by lower deposit costs [26][27] - The net interest margin expanded by 12 basis points to 3.45%, attributed to an 18 basis point reduction in the cost of funds [27][32] - Noninterest income decreased by $6 million to $29.2 million, primarily due to a decline in loan-related interest rate swap fees and other operating income [28] Business Line Data and Key Metrics Changes - Loans held for investment decreased by $42.9 million or 0.9% annualized from the previous quarter, primarily due to declines in construction and land development loans [31] - Total deposits increased by $105.3 million or 2.1% annualized, with noninterest-bearing deposits rising by $194 million during the quarter [14][31] - The total allowance for credit losses increased to $209 million, up approximately $15.3 million from the previous quarter, reflecting increased economic uncertainty [25][32] Market Data and Key Metrics Changes - The company noted that the Greater Washington region, where it operates, is projected to be a significant AI growth hub and has a highly educated workforce [39][41] - The unemployment rate in the Greater Washington area is expected to rise but remains below the national average, providing some capacity to absorb federal job cuts [41][42] Company Strategy and Development Direction - The company aims for upper single-digit loan growth in the long term, with mid-single-digit growth expected in the medium term due to current economic conditions [99][100] - The acquisition of Sandy Spring is seen as a strategic move to enhance the company's market presence, with plans to expand in North Carolina over time [52][53] - The company is focused on soundness, profitability, and growth, prioritizing these aspects in its operational strategy [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain economic outlook and potential impacts from trade policies, but expressed confidence in asset quality and market strength [16][17] - The company does not forecast a recession for 2025, despite acknowledging the risks associated with economic uncertainty [71][128] - Management highlighted a strong pipeline for business opportunities, indicating that disruptions in the market could lead to unforeseen benefits [110] Other Important Information - The company updated its full-year 2025 financial outlook to include the expected impact of the Sandy Spring acquisition, projecting loan balances between $28 billion and $29 billion and deposit balances between $31 billion and $32 billion [70] - The company plans to complete a $2 billion commercial real estate loan sale by the end of the current quarter, which is expected to align with initial projections [58][60] Q&A Session Summary Question: Update on Sandy Spring deal marks - The loan mark as of March 31 is about 7% of loans, higher than the initial projection of 6% [78] Question: Credit mark changes with Sandy Spring - The credit mark came in better than projected at about 1.3% for the entire portfolio [85] Question: Risks associated with the commercial real estate loan sale - Current projections for the loan sale remain stable, with no major negative impacts anticipated [87] Question: Long-term loan growth perspective - The company aims for upper single-digit loan growth in the long term, with mid-single-digit growth expected in the medium term [99][100] Question: Current portfolio health and economic outlook - There are no significant signs of deterioration in the portfolio, but uncertainty from tariffs is being monitored closely [124][128]

Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $46.9 million, with diluted earnings per common share at $0.52. Adjusted operating earnings were $51.6 million or $0.57 per diluted common share, resulting in an adjusted operating return on tangible common equity of 13.2% and adjusted operating return on assets of 0.90% [25][32] - The tax equivalent net interest income increased to $187.9 million, up approximately $8.88 million from the previous quarter, driven by lower deposit costs and a net interest margin of 3.45%, which is a 12 basis point increase from the prior quarter [26][27] - Noninterest income decreased by $6 million to $29.2 million, primarily due to a decline in loan-related interest rate swap fees and other operating income [28] Business Line Data and Key Metrics Changes - Loans held for investment decreased by $42.9 million or 0.9% annualized from the previous quarter, primarily due to declines in construction and land development loans, while multifamily real estate loans increased [31] - Total deposits increased by $105.3 million or 2.1% annualized, with noninterest-bearing deposits rising by $194 million, representing 22% of total deposits, up from 21% at the end of the previous quarter [14][31] Market Data and Key Metrics Changes - The company acknowledged the economic outlook's uncertainty and the potential impacts of new trade policies, but maintained confidence in asset quality and market strength [16][17] - The Greater Washington region, where the company operates, is projected to remain resilient despite expected increases in unemployment, with a strong focus on national security and defense-related sectors [39][42] Company Strategy and Development Direction - The company aims for sustainable profitable growth and long-term value creation for shareholders, with a focus on soundness, profitability, and growth [33] - Following the acquisition of Sandy Spring, the company plans to leverage its expanded franchise to enhance market share and capitalize on growth opportunities in attractive markets [52][53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties and projected a low net charge-off ratio between 15 and 25 basis points for the full year 2025 [16][70] - The company updated its financial outlook for 2025, projecting loan balances between $28 billion and $29 billion and deposit balances between $31 billion and $32 billion, while expecting a full-year net interest margin between 3.75% and 4% [70][73] Other Important Information - The company has taken prudent actions to build the allowance for credit losses in response to economic uncertainty, with total allowance for credit losses increasing to $209 million [25][32] - The acquisition of Sandy Spring is expected to enhance the company's market position, with approximately 46% of the pro forma combined loan portfolio marked for credit and interest rates [35][36] Q&A Session Summary Question: Update on Sandy Spring deal marks - The loan mark as of March 31 is about 7% of loans, approximately $800 million, which is higher than the original projection of $600 million [78] Question: Credit mark changes with Sandy Spring - The credit mark came in better than projected at about 1.3% for the entire portfolio, compared to an original estimate of 1.5% [85] Question: Risks associated with the commercial real estate loan sale - The company does not foresee major negatives affecting the projected discount for the loan sale, which remains at about 10% [87] Question: Long-term loan growth perspective - The company aims for upper single-digit loan growth in the long term, with mid-single-digit growth expected in the medium term [99] Question: Credit quality and economic outlook - There are no current signs of deterioration in the portfolio, but the company is closely monitoring the impact of tariffs and economic uncertainty [124][128]

Financial Data and Key Metrics Changes - The company reported a net interest margin expansion of 12 basis points and a reduction in the cost of funds by 18 basis points [10][19] - Average loan growth was approximately 1.3% annualized quarter over quarter, while loans held for investment decreased by 0.9% annualized from the end of the fourth quarter [10][21] - Deposit growth was approximately 2.1% annualized, with non-interest bearing deposits increasing by $194 million [11][21] - The total allowance for credit losses increased to $209 million, representing 1.13% of loans held for investment [17][21] Business Line Data and Key Metrics Changes - Non-interest income decreased by $6 million to $29.2 million, primarily due to a decline in loan-related interest rate swap fees and other operating income [19] - Non-interest expense increased by $4.5 million to $134.2 million, driven by higher salaries and benefits expenses [20] Market Data and Key Metrics Changes - The company noted that the Greater Washington region has a low unemployment rate and is expected to remain resilient despite potential federal workforce reductions [26][27] - The company has a diversified loan portfolio with limited exposure to non-owner occupied office buildings, which are not seen as a concern [28][29] Company Strategy and Development Direction - The acquisition of Sandy Spring Bancshares is expected to enhance the company's market position, with Sandy Spring representing about one-third of the combined company by asset size [23] - The company plans to leverage its market power and expand its presence in North Carolina while maintaining a focus on soundness, profitability, and growth [32][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the economic uncertainty and potential risks of a national recession but expressed confidence in asset quality and market strength [12][22] - The company expects to generate sustainable, profitable growth and build long-term value for shareholders in 2025 and beyond [21][22] Other Important Information - The company updated its financial outlook for 2025 to include the expected impact of the Sandy Spring acquisition, projecting loan balances between $28 billion and $29 billion and deposit balances between $31 billion and $32 billion [42][43] - The company anticipates a full-year net charge-off ratio between 15 and 25 basis points and a net interest margin between 3.75% and 4% [43][44] Q&A Session Summary Question: Can you provide an update on the interest rate marks from the Sandy Spring deal? - The low mark is about 7% of loans, approximately $800 million, which is higher than the original projection of $600 million [47][48] Question: What is the composition of the loans in the commercial real estate sale? - The majority of the loans are retail and multifamily, with a short duration of about three to four years [55][57] Question: What are the long-term loan growth expectations? - The company aims for upper single-digit loan growth in a normalized environment, with medium-term expectations being mid-single digits [64][66] Question: Are there any signs of weakness in the portfolio due to tariffs? - There are currently no known issues with credit quality, but the company is monitoring the situation closely due to economic uncertainty [83][86]

Core Viewpoint - Shore Bancshares, Inc. has appointed Charles Cullum as the new Executive Vice President and Chief Financial Officer, effective April 21, 2025, succeeding Todd L. Capitani, who will assist during the transition until August 15, 2025 [1][3]. Group 1: Leadership Transition - Charles Cullum has over 20 years of financial experience, most recently serving as CFO at Sandy Spring Bancorp since May 2024 [2]. - Todd L. Capitani has announced his retirement after serving as CFO since July 2023 and previously as CFO of Community Financial since 2009, expressing gratitude for his tenure [3]. Group 2: Company Overview - Shore Bancshares is a financial holding company based in Easton, Maryland, and is the parent company of Shore United Bank, N.A., which also provides trust and wealth management services through Wye Financial Partners [4].

Core Insights - Abacus Life, Inc. reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and showing an improvement from a loss of $0.10 per share a year ago, resulting in an earnings surprise of 23.08% [1] - The company achieved revenues of $33.21 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 15.67%, compared to $23.65 million in the same quarter last year [2] - Abacus Life, Inc. has outperformed consensus EPS estimates three times over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $35.85 million, and for the current fiscal year, it is $0.73 on revenues of $187.92 million [7] - The estimate revisions trend for Abacus Life, Inc. is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Insurance - Life Insurance industry, to which Abacus Life, Inc. belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ____________ Commission File Number: 0-19065 SANDY SPRING BANCORP, INC. (Exact name of registrant as specified in its charter) Maryland 52-1532952 (State of incorporat ...

PART I [Business](index=5&type=section&id=Item%201.%20Business) Sandy Spring Bancorp, Inc. is a community banking organization with over 50 locations in the Washington metropolitan area, focusing on commercial and retail banking, mortgage, private banking, and wealth management services Company Overview as of December 31, 2021 | Metric | Value | | :--- | :--- | | Total Assets | $12.6 billion | | Total Loans | $10.0 billion | | Total Deposits | $10.6 billion (as of Dec 31, 2021) | | Locations | Over 50 | | Primary Markets | Central Maryland, Northern Virginia, Washington D.C. | - The company completed the acquisition of Revere Bank on April 1, 2020, which added over **$2.8 billion** in assets, and acquired wealth advisory firm Rembert Pendleton Jackson (RPJ) on February 1, 2020, which had approximately **$1.5 billion** in assets under management[14](index=14&type=chunk) - The company participated extensively in the Small Business Administration's (SBA) Paycheck Protection Program (PPP), originating **8,574 loans** totaling **$1.6 billion** in 2020 and 2021. As of December 31, 2021, **$1.4 billion** of these loans had been forgiven, with an outstanding balance of **$183.5 million**[24](index=24&type=chunk)[25](index=25&type=chunk) - The company's workforce as of December 31, 2021, consisted of **1,116 employees**, with **58.6%** being women and **41.4%** minorities[49](index=49&type=chunk) [Loan Products](index=7&type=section&id=Loan%20Products) The company offers diverse loan products, primarily commercial lending including real estate and business loans, alongside residential real estate and consumer loans - The commercial loan portfolio is diversified, with no single industry concentration exceeding **10%** of total loans[23](index=23&type=chunk) - Commercial real estate loans consist of both owner-occupied and nonowner-occupied (investor) properties. The company mitigates risk through conservative loan-to-value ratios, personal guarantees, and floating or short-term fixed interest rates[27](index=27&type=chunk) - The company's strategic decision is to sell the majority of new conforming mortgage loan production in the secondary market[34](index=34&type=chunk) [Deposit, Treasury, and Borrowing Activities](index=10&type=section&id=Deposit,%20Treasury,%20and%20Borrowing%20Activities) The company funds long-term lending through core deposit growth, manages its investment portfolio for liquidity, and uses borrowings for short-term needs - The company relies primarily on core deposit growth to fund long-term loan growth, viewing deposit products as the lead product for developing multi-product customer relationships[43](index=43&type=chunk) - The investment portfolio's primary objective is to provide liquidity. As of year-end 2021, **96%** of the portfolio was rated AA or above, with an average duration of **4.3 years**[45](index=45&type=chunk) - The company issued **$175 million** in subordinated debt in November 2019 to support future growth and redeem higher-priced debt from previous acquisitions. This debt qualifies as Tier 2 capital[47](index=47&type=chunk) [Regulation, Supervision, and Governmental Policy](index=14&type=section&id=Regulation,%20Supervision,%20and%20Governmental%20Policy) The company operates under extensive federal and state regulations, including capital adequacy, consumer protection, and anti-money laundering laws, with oversight from the Federal Reserve and SEC - The company is subject to minimum capital requirements, including a leverage ratio of **4%**, a common equity Tier 1 ratio of **4.5%**, and a total risk-based capital ratio of **8%**, plus a **2.5%** capital conservation buffer[81](index=81&type=chunk)[83](index=83&type=chunk) - As an institution with over **$10 billion** in assets, the Bank is subject to the supervisory and enforcement authorities of the Consumer Financial Protection Bureau (CFPB)[79](index=79&type=chunk) - The Bank received an "outstanding" rating in its last Community Reinvestment Act (CRA) examination[85](index=85&type=chunk) - Due to crossing the **$10 billion** asset threshold, the company will become subject to interchange fee restrictions (Durbin Amendment) beginning July 1, 2022[77](index=77&type=chunk) [Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from economic downturns, geographic concentration, interest rate fluctuations, high commercial real estate loan concentration, operational failures, and regulatory changes - The company's lending operations are concentrated in central Maryland, Northern Virginia, and Washington D.C., making it susceptible to downturns in local economic conditions[104](index=104&type=chunk) - The commercial real estate loan portfolio totaled **$6.9 billion**, or **69%** of the total loan portfolio at December 31, 2021, exposing the company to increased lending risks dependent on the successful operation of these properties[118](index=118&type=chunk) - The company's total commercial investor real estate loans represented **380%** of the Bank's total risk-based capital, exceeding the **300%** regulatory guidance threshold that could trigger increased supervisory scrutiny[119](index=119&type=chunk)[120](index=120&type=chunk) - The company will become subject to the interchange fee restrictions of the Durbin Amendment beginning July 1, 2022, which could adversely affect non-interest income[155](index=155&type=chunk) - The transition from LIBOR to alternative reference rates like SOFR for its loans, swaps, and debt obligations may introduce financial and operational risks, including potential disputes with counterparties[108](index=108&type=chunk)[109](index=109&type=chunk) [Properties](index=37&type=section&id=Item%202.%20Properties) The company's headquarters is in Olney, Maryland, with 12 owned banking centers and other locations leased - The company owns **12** of its full-service community banking centers and leases the remaining locations[172](index=172&type=chunk) [Legal Proceedings](index=37&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine litigation, with management not expecting any material impact on financial condition or operating results - Management does not anticipate that any currently pending legal proceedings will have a material effect on the company's financial condition or results of operations[173](index=173&type=chunk) PART II [Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=37&type=section&id=Item%205.%20Market%20for%20the%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NASDAQ, completed a stock repurchase plan in 2021, and outperformed its peer group in cumulative total return over five years - The company's common stock trades on the NASDAQ Global Select Market under the symbol "**SASR**"[175](index=175&type=chunk) - In 2021, the company repurchased all **2,350,000 shares** authorized under its December 2020 stock repurchase plan at an average price of **$45.65 per share**[177](index=177&type=chunk) Cumulative Total Return Comparison (2016-2021) | Index | 12/31/16 | 12/31/21 | | :--- | :--- | :--- | | Sandy Spring Bancorp, Inc. | $100.00 | $141.59 | | S&P 500 Index | $100.00 | $233.41 | | Peer Group | $100.00 | $113.98 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income significantly increased in 2021 due to a credit to provision for credit losses, with improved net interest income and margin, while assets slightly decreased and credit quality improved Key Financial Results (2021 vs. 2020) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Net Income | $235.1 million | $97.0 million | | Diluted EPS | $4.98 | $2.18 | | Net Interest Income | $424.5 million | $363.2 million | | Net Interest Margin | 3.56% | 3.35% | | Provision for Credit Losses | ($45.6 million) | $85.7 million | | Non-performing Loans / Total Loans | 0.49% | 1.11% | - Total loans declined **4%**, driven by an **$874.4 million** reduction in PPP loans. Excluding PPP loans, total commercial loans grew by **$681.1 million** during the year[190](index=190&type=chunk) - Deposits increased **6%** year-over-year, driven by **14%** growth in noninterest-bearing deposits. This growth, along with PPP loan forgiveness, provided excess liquidity used to reduce borrowings[190](index=190&type=chunk) - The GAAP efficiency ratio improved to **49.47%** in 2021 from **54.90%** in 2020, as revenue growth outpaced non-interest expense growth[190](index=190&type=chunk) [Financial Condition](index=62&type=section&id=Financial%20Condition) Total assets decreased slightly to $12.6 billion, with loan portfolio changes driven by PPP forgiveness and growth in investor commercial real estate, while deposits grew and borrowings significantly reduced Loan Portfolio Composition (December 31, 2021) | Loan Category | Amount (in thousands) | % of Total | | :--- | :--- | :--- | | Commercial Investor Real Estate | $4,141,346 | 41.5% | | Commercial Owner-Occupied Real Estate | $1,690,881 | 17.0% | | Commercial AD&C | $1,088,094 | 10.9% | | Commercial Business | $1,481,834 | 14.9% | | Residential & Consumer Loans | $1,564,936 | 15.7% | | **Total Loans** | **$9,967,091** | **100.0%** | Deposit Composition (December 31, 2021) | Deposit Category | Amount (in thousands) | % of Total | | :--- | :--- | :--- | | Noninterest-bearing deposits | $3,779,630 | 35.6% | | Interest-bearing deposits | $6,845,101 | 64.4% | | **Total Deposits** | **$10,624,731** | **100.0%** | - Total borrowings decreased by **73%** to **$313.8 million** at year-end 2021 from **$1.1 billion** at year-end 2020, primarily due to the reduction of federal funds purchased and FHLB advances[250](index=250&type=chunk)[265](index=265&type=chunk) Key Capital Ratios (December 31, 2021) | Ratio | Company | Minimum Requirement | | :--- | :--- | :--- | | Tier 1 Leverage | 9.26% | 4.00% | | Common Equity Tier 1 Capital | 11.91% | 4.50% | | Total Capital | 14.59% | 8.00% | [Credit Risk](index=69&type=section&id=Credit%20Risk) Credit quality improved significantly in 2021, with non-performing loans and the allowance for credit losses decreasing due to improved economic forecasts and portfolio management Non-Performing Assets (NPA) Summary | Metric | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Non-performing loans | $48,810 thousand | $115,452 thousand | | Non-performing loans to total loans | 0.49% | 1.11% | | Non-performing assets to total assets | 0.40% | 0.91% | Allowance for Credit Losses (ACL) Activity | (in thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Balance, January 1 | $165,367 | $56,132 | | Provision for credit losses | ($45,556) | $85,669 | | Net charge-offs | ($10,666) | ($807) | | **Balance, period end** | **$109,145** | **$165,367** | | ACL to total loans | 1.10% | 1.59% | - The reduction in non-performing loans was driven by partial payoffs and charge-offs of a few large borrowings in the hospitality sector[280](index=280&type=chunk) - In response to the COVID-19 pandemic, the company granted payment modifications/deferrals on over **2,500 loans** totaling **$2.1 billion**. As of December 31, 2021, only **38 loans** with an aggregate balance of **$7.6 million** remained in deferral status[286](index=286&type=chunk) [Market Risk and Liquidity Management](index=77&type=section&id=Market%20Risk%20and%20Liquidity%20Management) The company actively manages interest rate risk, is asset-sensitive, and is transitioning from LIBOR, while maintaining strong liquidity supported by core deposits and significant credit lines Net Interest Income (NII) Sensitivity Analysis (as of Dec 31, 2021) | Change in Interest Rates | Estimated % Change in NII | | :--- | :--- | | +200 bp | +4.80% | | +100 bp | +2.16% | - The company has ceased originating new LIBOR-indexed loans and is developing transition plans for approximately **$1.6 billion** in existing loans indexed to LIBOR that mature after June 30, 2023[319](index=319&type=chunk) - The company has significant external liquidity sources, including an available line of credit with the FHLB totaling **$3.9 billion** with no outstanding borrowings as of December 31, 2021[323](index=323&type=chunk) [Financial Statements and Supplementary Data](index=81&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Management concluded internal control over financial reporting was effective, and the independent auditor issued unqualified opinions on both internal control and financial statements - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2021, based on the COSO framework[329](index=329&type=chunk) - The independent registered public accounting firm, Ernst & Young LLP, issued an unqualified opinion, stating that the company maintained effective internal control over financial reporting as of December 31, 2021[333](index=333&type=chunk) - Ernst & Young LLP also issued an unqualified opinion on the consolidated financial statements, stating they present fairly, in all material respects, the financial position and results of operations in conformity with U.S. GAAP[343](index=343&type=chunk) - The critical audit matter identified by the auditor was the allowance for credit losses, specifically noting the high degree of subjectivity and significant judgment required in determining the qualitative reserve related to loan portfolio concentrations[349](index=349&type=chunk) [Controls and Procedures](index=156&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of December 31, 2021, with no material changes to internal control over financial reporting during the fourth quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2021[571](index=571&type=chunk) - No material changes to internal control over financial reporting occurred during the fourth quarter of 2021[570](index=570&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=156&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the company's definitive proxy statement for the upcoming Annual Meeting of Shareholders - This section incorporates by reference information from the company's Proxy Statement regarding directors and corporate governance[575](index=575&type=chunk) [Executive Compensation](index=156&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding director and executive compensation, including the CEO pay ratio, is incorporated by reference from the company's definitive proxy statement - This section incorporates by reference information from the company's Proxy Statement regarding executive compensation[576](index=576&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=156&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of beneficial owners and management is incorporated by reference from the company's definitive proxy statement - This section incorporates by reference information from the company's Proxy Statement regarding stock ownership[577](index=577&type=chunk) [Certain Relationships and Related Transactions and Director Independence](index=156&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) Information regarding director independence and transactions with related persons is incorporated by reference from the company's definitive proxy statement - This section incorporates by reference information from the company's Proxy Statement regarding related party transactions and director independence[578](index=578&type=chunk) [Principal Accountant Fees and Services](index=156&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding fees paid to the principal accountant and Audit Committee pre-approval policies is incorporated by reference from the company's definitive proxy statement - This section incorporates by reference information from the company's Proxy Statement regarding audit and non-audit fees[581](index=581&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=159&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with the Form 10-K, including consolidated financial statements and auditor reports - This section contains the list of all financial statements and exhibits filed with the Form 10-K, including certifications by the CEO and CFO[583](index=583&type=chunk)[584](index=584&type=chunk)