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JEDDAH: When Saudi Arabia first announced it was lifting its 35-year ban on film screenings four years ago, few predicted the progress the Kingdom’s fledgling film industry would soon make .

Since April 18, 2018, Saudis have been free to visit local cinemas, a totally new experience for many.

“I watch a movie at least two or three times a month and wouldn’t mind going more if it weren’t for my frequent travels,” said Jawaher Abdullatif, a 35-year-old private sector worker from Riyadh, at Arab News.

“You are transformed in the world of film. It’s an amazing feeling and I love being able to finally do it from the comfort of a nearby cinema.

The change was announced in 2017 by Crown Prince Mohammed bin Salman, to improve the quality of life in the Kingdom through entertainment.

For older generations who remember the days before Prohibition, the return of movie theaters was an encouraging moment. Mostafa Zain, a retired engineer from Jeddah, remembers being captivated by cinema as a child.

“I was good friends with the Jamjoums who established the first cinemas in the city,” Zain told Arab News.

“Even after the ban, I still found time to go see a movie because I frequented Cairo a few times a year in the 1980s and 1990s, and later in the United States. We would always find time for a movie. Today I can wake up and check the movie listings and book my movie in no time. I no longer need to fly to watch a movie.

This section contains relevant reference points, placed in (Opinion field)

The General Commission for Audiovisual Media, one of the government authorities set up to regulate and operate cinemas in the Kingdom, estimates that there will be 2,600 cinema screens in Saudi Arabia by 2030, in an industry worth $200,000. about $1.2 billion.

More than 50 cinemas, operating some 430 screens, have been established across the Kingdom, operated by Vox Cinemas, Muvi, Cinepolis, AMC and Empire. “It takes less than five minutes to reserve a seat in a movie theater today,” Zain added.

By 2030, the number of theaters in the Kingdom should reach 2,600. (AFP photo)

Saudi Arabia’s first cinemas appeared in the Eastern Province in the 1930s, established by Western oil workers.

By the 1960s and 1970s, movie theaters had sprung up in major cities across the country. Films were shown in football clubs, backyards, courtyards and hotels.

But in the early 1980s, following the 1979 terrorist attack on the Grand Mosque in Mecca, religious conservatism began to gain ground in the Kingdom, discouraging public entertainment, including cinema.

To circumvent the ban, many Saudis traveled regularly to Bahrain or the United Arab Emirates.

The opening of theaters in the Kingdom has been widely welcomed by Saudis, who used to flock to Bahrain or Dubai for entertainment. (Courtesy of Red Sea Film Festival)

Nahar Al-Hamrani, producer and managing director of AlMaha Films in Jeddah, would take a two and a half hour flight to Dubai to see a film.

“Sometimes I was just going to watch a movie, have a bite to eat and go home,” he told Arab News.

“As soon as cinemas opened in Saudi Arabia, everything changed. Even the experience changed. It’s fun, convenient, and for some strange reason there’s just something different about going to the cinema here. It’s right in our garden.

“For many of us who traveled abroad during the summer holidays, we had to wait months to get the full cinematic experience. Now it’s just a tap away from our screen and it doesn’t is more part of our travel plans.

For a time, Western films appeared on television through MBC2 or through direct satellite networks such as Orbit, which later merged with Showtime to become the Orbit Showtime network.

Most Saudis could only access Western movies on smuggled VHS. When the DVDs first appeared, they were looking at fuzzy fakes purchased from street vendors or behind the counter in local stores.

Hollywood actor John Travolta attends a special event organized by the Kingdom’s General Entertainment Authority in Riyadh in 2017. (AFP)

Speaking at a special event at Riyadh’s Apex Convention Center in December 2017, hosted by the General Entertainment Authority to mark the lifting of the ban, Hollywood actor John Travolta hailed the historic decision.

“I think it’s an important and historic moment, because I understand that it’s the only country in the world that doesn’t have a cinema and the idea that it’s happening again now after 35 years, I have the feel like part of a celebration of freedom that is tied to a beautiful thing in humanity, so that’s a good thing,” Travolta said.

Movie giants have begun to flock to the country.

Owned and operated by Majid Al-Futtaim Cinemas, VOX Cinemas is the cinema arm of Emirati retail and entertainment giant Majid Al-Futtaim and one of the fastest growing in the region, operating 149 cinema screens alone in Saudi Arabia.

Mohamed Al-Hashemi, Country Director of Majid Al-Futtaim Leisure, Entertainment, Cinemas and Lifestyle in Saudi Arabia, said: “From the beginning, we have differentiated ourselves from our competitors thanks to our holistic approach.

“VOX Cinemas is a leisure and entertainment concept that seamlessly integrates state-of-the-art cinema, interactive attractions such as bowling and arcade games and iconic food and beverage concepts into one experience. enriched.”

Young people are among the growing number of moviegoers in the Kingdom. (A photo by Huda Bashatah)

The return of cinema to Saudi Arabia has invigorated the national industry and inspired new festivals to showcase and celebrate it.

The industry saw theatrical box office market growth worth $238 million in 2021, more than double the previous year’s revenue of $122 million, dampened by the COVID-19 pandemic. 19.

The year was capped off with the Red Sea International Film Festival in December, which saw the big names in Arab cinema, Hollywood and Bollywood grace the red carpet at the UNESCO World Heritage Site of Jeddah, Al- Walk.

Sara Al-Munef, a young director whose short film screened at the Saudi International Film Festival at Ithra in Dhahran last year. (Provided)

There, on three large screens erected by VOX Cinemas, some 30,000 moviegoers were able to enjoy 138 films from 67 countries, including 48 Arab premieres and 27 Saudi films.

“Cinemas and content production offer huge potential for economic growth,” said Majid Al-Futtaim’s Al-Hashemi. “We recently announced ambitious plans to bring 25 local films to the big screen over the next five years.

“Our goal of boosting regional film production reiterates our commitment to achieving the goals of Vision 2030 and is aligned with the Film Commission’s strategy to make the Kingdom a world-class film hub.”

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SB FINANCIAL GROUP, INC. Management report and analysis of the financial situation and operating results. (Form 10-K) https://rrreading.com/sb-financial-group-inc-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-k/ Mon, 07 Mar 2022 18:56:04 +0000 https://rrreading.com/sb-financial-group-inc-management-report-and-analysis-of-the-financial-situation-and-operating-results-form-10-k/
SB Financial Group, Inc. ("SB Financial"), is a financial holding company
registered with the Federal Reserve Board and subject to regulation under the
Bank Holding Company Act of 1956, as amended. Through its direct and indirect
subsidiaries, SB Financial is engaged in commercial and retail banking, wealth
management and private client financial services.

The following discussion provides a review of the consolidated financial
condition and results of operations of SB Financial and its subsidiaries
(collectively, the "Company"). This discussion should be read in conjunction
with the Company's consolidated financial statements and related footnotes as of
and for the years ended December 31, 2021 and 2020.

Strategic discussion


The focus and strategic goal of the Company is to grow into and remain a top
decile (>90th percentile) independent financial services company. The Company
intends to achieve and maintain that goal by executing our five key initiatives.

Increase profitability through ongoing diversification of revenue streams: For
the twelve months ended December 31, 2021, the Company generated $30.7 million
in noninterest income, or 44.8 percent of total operating revenue, from
fee-based products. These revenue sources include fees generated from saleable
residential mortgage loans, retail deposit products, wealth management services,
saleable business-based loans (small business and farm service) and title agency
revenue. For the twelve months ended December 31, 2020, the Company generated
$30.1 million in revenue from fee-based products, or 45.6 percent of total
operating revenue.

Strengthen our penetration in all markets served: Over our 119-year history of
continuous operation in Northwest Ohio, we have established a significant
presence in our traditional markets in Defiance, Fulton, Paulding and Williams
counties in Ohio. In our newer markets of Bowling Green, Columbus, Findlay,
Toledo (Ohio) and Ft. Wayne (Indiana), our current market penetration is minimal
but we believe our potential for growth is significant. We have expanded and
committed additional resources to our presence in the Findlay and Edgerton
markets. We continue to seek to expand the presence and penetration in all of
our markets.

Expand product utilization by new and existing customers: As of December 31,
2021, we operated in ten counties in Northwest Ohio and Northeast Indiana with
23 full service offices, 24 full service ATM's and five loan production offices.
Combined in the ten counties of operation, we command 4.47 percent of the
deposit market share, which has steadily grown.

Deliver gains in operational excellence: Our management team believes that
becoming and remaining a high-performance financial services company will depend
upon seamlessly and consistently delivering operational excellence, as
demonstrated by the Company's leadership in the origination and servicing of
residential mortgage loans. As of December 31, 2021, the Company serviced 8,614
residential mortgage loans with a principal balance of $1.36 billion. As of
December 31, 2020, the Company serviced 8,543 loans with a principal balance of
$1.30 billion.

Sustain asset quality: As of December 31, 2021, the Company's asset quality
metrics remained strong. Specifically, total nonperforming assets were $6.5
million, or 0.49 percent of total assets. Total delinquent loans at December 31,
2021 were 0.46 percent of total loans. As of December 31, 2020, the Company had
total nonperforming assets of $7.3 million, or 0.58 percent of total assets.
Total delinquent loans at December 31, 2020 were 0.75 percent of total loans.

The successful execution of these five strategies have enabled the Company to
improve financial performance across a broad series of metrics. These metrics
over the last five years are outlined in the following table. Specifically, the
Company has increased total assets by $454.3 million, or 52 percent. The growth
has been on both sides of the balance sheet over the five year period, with
loans growing $126.1 million or 18 percent and deposits growing $383.4 million
or 52.6 percent.

The Company has raised capital through the issuance of equity and debt to the
market on two separate occasions during the period, which has raised equity
capital significantly and expanded liquidity for potential strategic expansion.
Strategic expansion has occurred with the acquisition of a small community bank,
the opening of three branch offices and the acquisition of two full service
title agencies.


                                       30




                              Financial Highlights
                            Year Ended December 31,

($ in thousands, except per
share data)
Earnings                             2021            2020            2019           2018          2017
Interest income                   $    41,904     $    42,635     $    44,400     $  39,479     $  32,480
Interest expense                        4,020           6,705           9,574         6,212         4,094
Net interest income                    37,884          35,930          34,826        33,267        28,386
Provision for loan losses               1,050           4,500             800           600           400
Noninterest income                     30,697          30,096          18,016        16,624        17,217
Noninterest expense                    44,808          43,087          37,410        34,847        31,578
Provision for income taxes              4,446           3,495           2,659         2,806         2,560
Net income                             18,277          14,944          11,973        11,638        11,065
Preferred stock dividends                   -               -             950           975           975
Net income available to common
shareholders                           18,277          14,944          11,023        10,663        10,090

Per Common Share Data
Basic earnings                    $      2.58     $      1.96     $      1.71     $    1.72     $    2.10
Diluted earnings                         2.56            1.96            1.51          1.51          1.74
Cash dividends declared                  0.44            0.40            0.36          0.32          0.28
Total equity per share                  21.05           19.39           17.53         16.36         15.03
Total tangible equity per share         17.60           16.30           15.23         15.39         13.27

Average Balances
Average total assets              $ 1,322,253     $ 1,161,396     $ 1,027,932     $ 947,266     $ 854,569
Average equity                        144,223         139,197         133,190       121,094        89,538

Ratios
Return on average total assets           1.38 %          1.29 %          1.16 %        1.23 %        1.29 %
Return on average equity                12.67           10.74            8.99          9.61         12.36
Cash dividend payout ratio1             17.18           20.54           23.84         19.60         13.50
Average equity to average
assets                                  10.91           11.99           12.96         12.78         10.48

Period End Totals
Total assets                      $ 1,330,854     $ 1,257,839     $ 1,038,577     $ 986,828     $ 876,627
Available-for-sale securities         263,259         149,406         100,948        90,969        82,790
Loans held for sale                     7,472           7,234           7,258         4,445         3,940
Total loans & leases                  822,714         872,723         825,510       771,883       696,615
Allowance for loan losses              13,805          12,574           8,755         8,167         7,930
Total deposits                      1,113,045       1,049,011         840,219       802,552       729,600
Advances from FHLB                      5,500           8,000          16,000        16,000        18,500
Trust preferred securities             10,310          10,310          10,310        10,310        10,310
Subordinated debt, net                 19,546               -               -             -             -
Total equity                          144,929         142,923         136,094       130,435        94,000





1 Cash dividends on common shares divided by net income available to common.




                                       31




Critical Accounting Policies
The accounting and reporting policies of the Company are in accordance with
generally accepted accounting principles in the United States and conform to
general practices within the banking industry. The Company's significant
accounting policies are described in detail in the notes to the Company's
Consolidated Financial Statements for the years ended December 31, 2021 and
2020. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions. The Company's financial position and results of operations can be
affected by these estimates and assumptions and are integral to the
understanding of reported results. Critical accounting policies are those
policies that management believes are the most important to the portrayal of the
Company's financial condition and results, and they require management to make
estimates that are difficult, subjective or complex.

Allowance for Loan Losses: The allowance for loan losses provides coverage for
probable losses inherent in the Company's loan portfolio. Management evaluates
the adequacy of the allowance for loan losses each quarter based on changes, if
any, in the nature and amount of problem assets and associated collateral,
underwriting activities, loan portfolio composition (including product mix and
geographic, industry or customer-specific concentrations), trends in loan
performance, regulatory guidance and economic factors. This evaluation is
inherently subjective, as it requires the use of significant management
estimates. Many factors can affect management's estimates of specific and
expected losses, including volatility of default probabilities, rating
migrations, loss severity and economic and political conditions. The allowance
is increased through provisions charged to operating earnings and reduced by net
charge offs.

The Company determines the amount of the allowance based on relative risk
characteristics of the loan portfolio. The allowance recorded for commercial
loans is based on reviews of individual credit relationships and an analysis of
the migration of commercial loans and actual loss experience. The allowance
recorded for homogeneous consumer loans is based on an analysis of loan mix,
risk characteristics of the portfolio, fraud loss and bankruptcy experiences,
and historical losses, adjusted for current trends, for each homogeneous
category or group of loans. The allowance for credit losses relating to impaired
loans is based on each impaired loan's observable market price, the collateral
for certain collateral-dependent loans, or the discounted cash flows using the
loan's effective interest rate.

Regardless of the extent of the Company's analysis of customer performance,
portfolio trends or risk management processes, certain inherent, but undetected,
losses are probable within the loan portfolio. This is due to several factors
including inherent delays in obtaining information regarding a customer's
financial condition or changes in their unique business conditions, the
subjective nature of individual loan valuations, collateral assessments and the
interpretation of economic trends. Volatility of economic or customer-specific
conditions affecting the identification and estimation of losses for larger
non-homogeneous credits and the sensitivity of assumptions utilized to establish
allowances for homogenous groups of loans are also factors. The Company
estimates a range of inherent losses related to the existence of these
exposures. The estimates are based upon the Company's evaluation of imprecise
risk associated with the commercial and consumer allowance levels and the
estimated impact of the current economic environment.

Goodwill and Other Intangibles: The Company records all assets and liabilities
acquired in purchase acquisitions, including goodwill and other intangibles, at
fair value as required. Goodwill is subject, at a minimum, to annual tests for
impairment. Other intangible assets are amortized over their estimated useful
lives using straight-line and accelerated methods, and are subject to impairment
if events or circumstances indicate a possible inability to realize the carrying
amount. The initial goodwill and other intangibles recorded and subsequent
impairment analysis requires management to make subjective judgments concerning
estimates of how the acquired asset will perform in the future. Events and
factors that may significantly affect the estimates include, among others,
customer attrition, changes in revenue growth trends, specific industry
conditions and changes in competition.

Deferred Tax Liability: The Company has evaluated its deferred tax liability to
determine if it is more likely than not that the liability will be realized in
the future. The Company's most recent evaluation has determined that the Company
will more likely than not be able to realize the remaining deferred tax
liability.

Income Tax Accounting: The Company files a consolidated federal income tax
return. The provision for income taxes is based upon income in the consolidated
financial statements, rather than amounts reported on our income tax return.
Deferred tax assets and liabilities are recognized for future tax consequences
attributable to differences between the financial statement carrying amounts of
existing assets and liabilities and their respective tax bases. Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to
taxable income in the years in which those temporary differences are expected to
be recovered or settled. The effect of a change in rates on the deferred tax
assets and liabilities is recognized as income or expense in the period that
includes the enactment date.


                                       32



Changes in financial situation


Total assets at December 31, 2021, were $1.33 billion, compared to $1.26 billion
at December 31, 2020. Loans (excluding loans held for sale) were $822.7 million
at December 31, 2021, compared to $872.7 million at December 31, 2020. Total
deposits were $1.11 billion at December 31, 2021, compared to $1.05 billion at
December 31, 2020. The Company continued to experience elevated levels of
liquidity as the balance sheets of both personal and business clients were
supplemented by government intervention and support. The increase in liquidity
by these parties has resulted in higher deposit levels, which in turn increased
the overall asset size of the Company.

The following are the Company’s condensed average balance sheets for the years ending the 31st of December and includes interest earned or paid, and the average interest rate, on each asset and liability:

                                                   2021                                        2020                                        2019
                                    Average                      Average        Average                      Average        Average                      Average
($ in thousands)                    Balance       Interest        Rate     

Balance Interest rate Balance Interest

Rate

Assets

Taxable securities/cash           $   380,770     $   3,386          0.89 %

$185,480 $2,328 1.26% $95,216 $3,226

      3.39 %
Non-taxable securities                  7,802           353          4.52 %         6,625           333          5.03 %        10,108           345          3.41 %
Loans, net1                           854,521        38,165          4.47 %       880,338        39,974          4.54 %       809,651        40,829          5.04 %
Total earning assets                1,243,093        41,904          3.37 %

1,072,443 42,635 3.98% 914,975 44,400

     4.85 %
Cash and due from banks                 7,290                                      14,553                                      47,135
Allowance for loan losses             (13,422 )                                   (10,165 )                                    (8,370 )
Premises and equipment                 24,710                                      23,776                                      23,779
Other assets                           60,582                                      60,789                                      50,413
Total assets                      $ 1,322,253                                 $ 1,161,396                                 $ 1,027,932

Liabilities
Savings and interest-bearing
demand deposits                   $   672,296     $   1,813          0.27 %   $   492,267     $   3,152          0.64 %   $   427,858     $   2,846          0.67 %
Time deposits                         177,918         1,316          0.74 %       247,955         2,918          1.18 %       262,040         5,814          2.22 %
Repurchase agreements & other          22,821            42          0.18 %
       22,832            70          0.31 %        15,288            82          0.54 %
Advances from FHLB                      6,507           188          2.89 %        14,186           309          2.18 %        16,066           402          2.50 %
Trust preferred securities             10,310           199          1.93 %        10,310           256          2.48 %        10,310           430          4.17 %
Subordianted debt                      12,057           462          3.83 %
Total interest-bearing
liabilities                           901,909         4,020          0.45 %       787,550         6,705          0.85 %       731,562         9,574          1.31 %

Demand deposits                       255,908                                     211,004                                     146,401
Other liabilities                      20,213                                      23,645                                      16,779
Total liabilities                   1,178,030                                   1,022,199                                     894,742
Shareholders' equity                  144,223                                     139,197                                     133,190
Total liabilities and
shareholders' equity              $ 1,322,253                                 $ 1,161,396                                 $ 1,027,932

Net interest income (tax
equivalent basis)                                 $  37,884                                   $  35,930                                   $  34,826

Net interest income as a
percent of average
interest-earning assets - GAAP
measure                                                              3.05 %                                      3.35 %                                      3.81 %

Net interest income as a
percent of average
interest-earning assets -
Non-GAAP measure 2                                                   3.06 %                                      3.36 %                                      3.82 %
-- Computed on a fully tax
equivalent basis (FTE)





1 Unexpected loans and loans held for sale are included in average balances.

2 Interest on tax-exempt securities and loans is calculated on a tax equivalent

based on a statutory tax rate of 21%, and added to net interest

Income. The tax equivalent adjustment was $0.15, $0.15 and $0.17 million in

  2021, 2020 and 2019, respectively.




                                       33



The following tables show the effect of volume and rate changes on interest income and expense for the periods indicated. For the purposes of these tables, interest changes due to volume and rate have been determined as follows:

? Volume Gap – volume change multiplied by the previous year’s rate.

? Rate spread – rate change multiplied by previous year’s volume.

? Rate/Volume Deviation – change in volume multiplied by change in rate. This

spread allocates the volume spread and the rate spread in proportion to the

   relationship of the absolute dollar amount of the change in each.



                                                        Total
                                                      Variance          Variance Attributable To
($ in thousands)                                      2021/2020         Volume              Rate
Interest income
Taxable securities                                   $     1,058     $      2,451       $     (1,393 )
Non-taxable securities1                                       20               59                (39 )

Loans, net of unearned revenue and deferred charges1 (1,809 ) (1,172 )

             (637 )
Total interest income                                       (731 )          1,338             (2,069 )

Interest expense
Savings and interest-bearing demand deposits              (1,339 )         
1,153             (2,492 )
Time deposits                                             (1,602 )           (824 )             (778 )
Repurchase agreements & other                                (28 )             (0 )              (28 )
Advances from FHLB                                          (121 )           (167 )               46
Trust preferred securities                                   (57 )              -                (57 )
Subordinated debt                                            462              462                  -
Total interest expense                                    (2,685 )            623             (3,308 )

Net interest income                                  $     1,954     $        715       $      1,239





1 Interest on non-taxable securities and loans has been adjusted to be fully

  equivalent



The maturity distribution and weighted-average interest rates of debt securities
available-for-sale at December 31, 2021, are set forth in the table below. The
weighted-average interest rates are based on coupon rates for securities
purchased at par value and on effective interest rates considering amortization
or accretion if the securities were purchased at a premium or discount:

                                                                                              Maturing
                                        Weighted                       Weighted                        Weighted                     Weighted                     Weighted
                           Within       Average                        Average                         Average         After        Average                      Average
($ in thousands)           1 Year        Yield         1-5 Years        Yield         5-10 Years        Yield        10 Years        Yield          Total         Yield
Available for sale:
U.S. Treasury and
Government agencies       $    606           0.44 %   $       707           2.13 %   $      7,792           2.02 %   $       -                    $   9,105           1.92 %
Mortgage-backed
securities                      63           1.93 %         1,668           3.01 %         31,293           1.49 %     195,110           1.36 %     228,134           1.39 %
State and political
subdivisions                     -                          2,065           3.21 %          2,473           4.28 %       8,341           2.64 %      12,879           3.04 %
Other corporate
securities                       -                              -                          13,141           3.47 %           -                       13,141           3.47 %
Total securities by
maturity                  $    669           0.58 %   $     4,440           2.96 %   $     54,699           2.17 %   $ 203,451           1.41 %   $ 263,259           1.59 %





1 Returns are presented on a tax equivalent basis.




                                       34



In June of 2020, we completed the acquisition of The Edon State Bank, which
added approximately $50 million in deposits and $15 million in loans. Building
on the success of our entry into the city of Edon, we opened an office in nearby
Edgerton, Ohio in May of 2021. The Edgerton expansion has also been positive as
we ended the year with over $15 million in both loans and deposits in that
office.

($ in thousands)                               Years Ended December 31,
                                           2021          2020        % Change
Total loans
Commercial business & agriculture        $ 179,653     $ 260,002         -30.9 %
Commercial real estate                     381,168       370,820           2.8 %
Residential real estate                    206,424       182,165          13.3 %
Consumer & other                            55,156        61,157          -9.8 %
Total loans                                822,401       874,144          -5.9 %

Net deferred costs (fees)                      313        (1,421 )      -122.0 %

Total loans, net deferred costs (fees)     822,714       872,723          -5.7 %

Loans held for sale                      $   7,472     $   7,234           3.3 %






                                2021            2020          % Change
Total deposits
Noninterest bearing demand   $   247,044     $   251,649           -1.8 %
Interest-bearing demand          195,464         176,785           10.6 %
Savings & money market           514,033         391,028           31.5 %
Time deposits                    156,504         229,549          -31.8 %
Total deposits                 1,113,045       1,049,011            6.1 %

Total shareholders' equity   $   144,929     $   142,923            1.4 %




Loans held for investment decreased $50.0 million, or 5.7 percent, to $822.7
million at December 31, 2021, which was due to a decrease in outstanding PPP
loans during 2021. The Company participated fully in the PPP initiative in both
2020 and 2021, which in total, encompassed 1,100 loans with an aggregate
principal amount of $111.4 million. At year-end 2021, the balance of PPP was
down to approximately 50 loans, with an aggregate principal amount of $2
million, as a result of SBA forgiveness of a majority of the PPP loans that we
originated. Adjusted for PPP activity, loan growth compared to 2020 was up $18.5
million, or 2.3 percent. In the first quarter of 2021, the Company introduced a
Private Client Residential Mortgage product. This product, of which $76 million
was originated during 2021, offset the refinance activity that occurred in
our
portfolio during the year.



Concentrations of Credit Risk: The Company makes commercial, real estate and
installment loans to customers located mainly in the Tri-State region of Ohio,
Indiana and Michigan. Commercial loans include loans collateralized by
commercial real estate, business assets and, in the case of agricultural loans,
crops and farm equipment and the loans are expected to be repaid from cash flow
from operations of businesses. As of December 31, 2021, commercial business and
agricultural loans made up approximately 29.6 percent of the loans held for
investment ("HFI") loan portfolio while commercial real estate loans accounted
for approximately 42.5 percent of the HFI loan portfolio. Residential first
mortgage loans made up approximately 20.9 percent of the HFI loan portfolio and
are secured by first mortgages on residential real estate, while consumer loans
to individuals made up approximately 7.0 percent of the HFI loan portfolio and
are primarily secured by consumer assets.


                                       35




Maturities and Sensitivities of Loans to Changes in Interest Rates: The
following table shows the maturity distribution of loans outstanding as of
December 31, 2021. The amounts have been categorized between loans with a fixed
or floating interest rate (floating rate loans have an adjustable interest rate
that changes in accordance to a rate index).

                                                  After one,        After five,
                                    Within        but within        but within             After
($ in thousands)                   one year       five years       fifteen years       fifteen years        Total
Loans with fixed interest
rates:
Commercial & industrial           $      981     $     20,715     $        28,106     $            23     $  49,825
Commercial real estate - owner
occupied                                 168            9,567              10,302                   -        35,051
Commercial real estate -
nonowner occupied                      6,828           14,246              13,815                 162        20,037
Agricultural                             122            4,094               5,557               1,362        11,135
Residential real estate                1,615            1,915              12,774              25,328        41,632
HELOC                                      5                -                   -                   -             5
Consumer                               2,416            6,364               2,380                   -        11,160
Total                             $   12,135     $     56,901     $        72,934     $        26,875     $ 168,845

Loans with floating interest
rates:
Commercial & industrial           $   28,754     $      6,213     $        35,464     $         1,994     $  72,425
Commercial real estate - owner
occupied                                   -           11,109              44,565              43,180       227,226
Commercial real estate -
nonowner occupied                      8,739           26,514             120,819              71,154        98,854
Agricultural                           1,646            7,846              16,670              20,106        46,268
Residential real estate                4,558              485              13,294             146,455       164,792
HELOC                                    223              469              30,487              10,498        41,677
Consumer                                 990            1,324                   -                   -         2,314
Total                             $   44,910     $     53,960     $       261,299     $       293,387     $ 653,556

Total loans:
Commercial & industrial           $   29,735     $     26,928     $        63,570     $         2,017     $ 122,250
Commercial real estate - owner
occupied                                 168           20,676              54,867              43,180       118,891
Commercial real estate -
nonowner occupied                     15,567           40,760             134,634              71,316       262,277
Agricultural                           1,768           11,940              22,227              21,468        57,403
Residential real estate                6,173            2,400              26,068             171,783       206,424
HELOC                                    228              469              30,487              10,498        41,682
Consumer                               3,406            7,688               2,380                   -        13,474
Total loans                       $   57,045     $    110,861     $       334,233     $       320,262     $ 822,401



Deposits increased $64.0 million, or 6.1 percent, to $1.11 billion at December
31, 2021. Deposits continued growing in 2021 on top of the over $200 million in
growth experienced during 2020. Expanded government support and reduced economic
activity has resulted in higher balances in client deposit accounts. During
2021, we experienced a shift in the mix of our deposit balances as more of our
clients moved balances to short-term transactional accounts. Specifically,
during 2021, time deposits decreased $73.0 million or 32 percent while other
deposits increased $137.1 million or 17 percent.

The average amount of deposits and weighted average rates paid are summarized as follows for the years ended the 31st of December:

                                   2021                          2020                         2019
                          Average        Average        Average       Average        Average       Average
($ in thousands)          Amount           Rate         Amount          Rate         Amount          Rate
Savings and interest
bearing demand
deposits                $   672,296           0.27 %   $ 492,267           0.64 %   $ 427,858           0.67 %
Time deposits               177,918           0.74 %     247,955           1.18 %     262,040           2.22 %
Non interest bearing
demand deposits             255,908              -       211,004              -       146,401              -
Totals                  $ 1,106,122           0.28 %   $ 951,226           0.64 %   $ 836,299           1.04 %




                                       36




Time deposits that exceeded the FDIC insurance limit of $250,000 are summarized
as follows:

($ in thousands)                             2021         2020
Three months or less                        $ 1,033     $    811
Over three months through six months            415        4,894
Over six months and through twelve months     3,083        1,658
Over twelve months                              238        2,640
Total                                       $ 4,769     $ 10,003



Stockholders' equity at December 31, 2021, was $144.9 million or 10.9 percent of
total assets compared to $142.9 million or 11.4 percent of total assets at
December 31, 2020. Retained earnings increased during the year by $15.1 million
due to earnings of $18.3 million less dividends paid to common shareholders of
$3.2 million. The fair market value of the bond portfolio decreased during 2021
due to the rise in interest rates, which resulted in a decrease in Other
Comprehensive Income ("OCI") of $4.1 million.

The Company continued to repurchase its own stock during the year. Specifically,
the Company repurchased approximately 500,000 shares during 2021 at an average
price of $18.50 per share, which was just slightly below book value. As of
December 31, 2021, the Company had 495,639 shares remaining of the 750,000
shares authorized for repurchase under the Company's existing share repurchase
program which was authorized on May 25, 2021 and expires May 21, 2022.

Asset Quality                                                  Years Ended December 31,
($ in thousands)                                          2021          2020         % Change
Nonaccruing loans                                       $   3,652     $   6,426          -43.2 %
Accruing restructured loans (TDRs)                            725           810          -10.5 %
Foreclosed assets and other assets held for sale, net       2,104          
 23         9047.8 %
Nonperforming assets                                        6,481         7,259          -10.7 %
Net charge offs (recoveries)                                 (181 )         681         -126.6 %
Loan loss provision                                         1,050         4,500          -76.7 %
Allowance for loan losses                                  13,805        12,574            9.8 %

Nonaccruing loans/total loans                                0.44 %        0.74 %        -39.7 %
Allowance/nonaccruing loans                                378.01 %      195.67 %         93.2 %
Nonperforming assets/total assets                            0.49 %       
0.58 %        -15.6 %
Net charge offs/average loans                               -0.02 %        0.08 %       -125.0 %
Allowance/loans                                              1.68 %        1.44 %         16.5 %
Allowance/nonperforming loans                              315.40 %      173.80 %         81.5 %


Nonperforming assets consisting of loans, Other Real Estate Owned ("OREO") and
accruing TDRs totaled $6.5 million, or 0.49 percent of total assets at December
31, 2021, a decrease of $0.8 million or 10.7 percent from 2020. Net charge offs
were down significantly during 2021, with total recoveries of $0.18 million,
which was a $0.86 million decrease compared to total charge offs of $0.68
million for 2020. The Company's loan loss allowance at December 31, 2021, now
covers nonperforming loans at 315 percent, up from 174 percent at December
31,
2020.


                                       37




The following schedule presents an analysis of the allowance for loan losses,
average loan data and related ratios at December 31 for the years indicated:

                                                                                                         Ratio of
                                                                                                      annualized net
                                                                                                       (chargeoffs)
                                              Provision for       Net (Chargeoffs)       Average       recoveries to
($ in thousands)                                Loan Loss            Recoveries           Loans        average loans
December 31, 2021
Commercial & industrial                      $        (1,411 )   $              227     $ 160,267                0.14 %
Commercial real estate - owner occupied                  505                      -       118,713                0.00 %
Commercial real estate - nonowner occupied               825               
      -       264,980                0.00 %
Agricultural                                             103                      -        53,122                0.00 %
Residential real estate                                  975                      6       195,277                0.00 %
HELOC                                                    (16 )                    -        43,488                0.00 %
Consumer                                                  69                    (52 )      11,546               -0.45 %
Total                                        $         1,050     $              181     $ 847,393                0.02 %

December 31, 2020
Commercial & industrial                      $         1,757     $             (566 )   $ 198,991               -0.28 %
Commercial real estate - owner occupied                  721                      -       104,856                0.00 %
Commercial real estate - nonowner occupied             1,128               
      -       269,924                0.00 %
Agricultural                                              62                      -        51,840                0.00 %
Residential real estate                                  373                    (42 )     185,311               -0.02 %
HELOC                                                    203                     (8 )      47,227               -0.02 %
Consumer                                                 256                    (65 )      11,595               -0.56 %
Total                                        $         4,500     $             (681 )   $ 869,744               -0.08 %

December 31, 2019
Commercial & industrial                      $           582     $             (134 )   $ 139,616               -0.10 %
Commercial real estate - owner occupied                  210                      -        96,106                0.00 %
Commercial real estate - nonowner occupied               468               
      1       257,756                0.00 %
Agricultural                                             (48 )                    -        51,836                0.00 %
Residential real estate                                 (325 )                  (39 )     194,390               -0.02 %
HELOC                                                   (102 )                   10        47,770                0.02 %
Consumer                                                  15                    (50 )      11,862               -0.42 %
Total loans                                  $           800     $             (212 )   $ 799,336               -0.03 %


The allowance for loan losses balance and the provision for loan losses are
determined by management based upon periodic reviews of the loan portfolio. In
addition, management considers the level of charge offs on loans, as well as the
fluctuations of charge offs and recoveries on loans, in the factors which caused
these changes. Estimating the risk of loss and the amount of loss is necessarily
subjective. Accordingly, the allowance is maintained by management at a level
considered adequate to cover losses that are currently anticipated based on past
loss experience, economic conditions, information about specific borrower
situations, including their financial position and collateral values, and other
factors and estimates which are subject to change over time.

The Company has substantially increased the reserve level over the last two
years. Specifically, since December 31, 2019 the allowance balance has increased
from $8.8 million to $13.8 million at December 31, 2021, which is an increase of
$5.0 million or 59 percent. This increase was the result of $5.6 million in
provision expense during the period ($4.5 million in 2020 and $1.1 million in
2021) and minimal charge-offs, which were just $0.5 million over the two year
period.


                                       38




The following schedule provides a breakdown of the allowance for loan losses
allocated by type of loan and related ratios at December 31 for the years
indicated:

                                            Percentage                        Percentage                        Percentage
                                            of Loans In                       of Loans In                       of Loans In
                                               Each                              Each                              Each
                            Allowance       Category to       Allowance       Category to       Allowance       Category to
                             Amount         Total Loans        Amount         Total Loans        Amount         Total Loans
($ in thousands)                       2021                              2020                              2019
Commercial & industrial    $     1,890              14.9 %   $     3,074              23.4 %   $     1,883              18.3 %
Commercial real estate -
owner occupied                   2,588              14.5 %         2,059              12.9 %         1,220              11.9 %
Commercial real estate -
nonowner occupied                4,193              31.9 %         3,392              29.5 %         2,382              32.5 %
Agricultural                       599               7.0 %           496               6.3 %           434               6.2 %
Residential real estate          3,515              25.1 %         2,534   
          20.8 %         2,203              23.4 %
Home equity line of
credit (HELOC)                     631               5.1 %           647               5.3 %           454               5.8 %
Consumer                           389               1.6 %           372               1.7 %           179               1.8 %
                           $    13,805             100.0 %   $    12,574             100.0 %   $     8,755             100.0 %



As detailed in the risk factors, the CARES Act provided for significant consumer
and small business relief due to the impact of the COVID-19 pandemic. The
Company provided payment relief to a number of consumer and small business
customers throughout 2020 and 2021, which we believe was successful and enabled
our clients to weather the pandemic effectively. All such COVID-related payment
deferrals had expired or been removed by December 31, 2021 and all clients were
back to contractual terms at such date.

Regulatory capital reporting is required for State Bank only, as the Company is
currently exempt from quarterly regulatory capital level measurement pursuant to
the Small Bank Holding Company Policy Statement. As of December 31, 2021, State
Bank met all regulatory capital levels required to be considered
well-capitalized (see Note 18 to the Consolidated Financial Statements).

On May 27, 2021, the Company issued and sold $20.0 million in aggregate
principal amount of its 3.65% Fixed to Floating Rate Subordinated Notes due 2031
in a private placement exempt from the registration requirements under the
Securities Act of 1933, as amended. The Subordinated Notes bear interest at a
fixed rate of 3.65% through May 31, 2026. From June 1, 2026 to the maturity date
or earlier redemption of the Subordinated Notes, the interest rate will reset
quarterly to an interest rate per annum, equal to the then-current-three-month
Secured Overnight Financing Rate ("SOFR") provided by the Federal Reserve Bank
of New York plus 296 basis points. The proceeds from the Subordinated Notes will
be used to assist the Company in meeting various corporate obligations,
including share buyback, acquisition costs and organic asset growth. The
Subordinated Notes have a maturity of 10 years.

Revenue Summary – 2021 vs 2020

Net income for 2021 was $18.3 million, or $2.56 per diluted share, compared with
net income of $14.9 million, or $1.96 per diluted share, for 2020. State Bank
reported net income for 2021 of $18.6 million, which was up from the $16.0
million in net income in 2020. SBFG Title reported net income for 2020 of $0.5
million, which was down from net income of $0.6 million in 2020.


Positive results for 2021 included loan growth of $18.5 million when excluding
the impact of the PPP initiative, and deposit growth of $64.0 million. The
Company fully participated in both phases of PPP, with a total of $111.4 million
in loans to over 1,100 clients with revenue of $3.4 million for 2021 compared to
$1.4 million for 2020. The mortgage banking business line continued to
contribute significant revenues, with residential real estate loan production of
$600.0 million for the year, resulting in $17.3 million of revenue from gains on
sale. The level of mortgage origination was down from the $694.2 million in
2020. The Company's loans serviced for others ended the year at $1.36 billion,
up from $1.30 billion at December 31, 2020.



                                       39




Operating revenue increased by $2.6 million, or 3.9 percent, from $66.0 million
in 2020 to $68.6 million in 2021 due to increased PPP fees and OMSR recapture
which offset lower mortgage gain revenue. SBFG Title increased revenue by $0.1
million of $2.1 million for 2021.

Operating expense increased by $1.7 million, or 4.0 percent, from $43.1 million
in 2020 to $44.8 million in 2021, due to compensation and fringe benefit cost
increases and higher spend on technology/digital initiatives. These expense
increases were offset by lower mortgage commission expense due to lower volume.

Results of Operations

                                                   Years Ended December 31,
($ in thousands, except per share data)      2021            2020         
% Change
Total assets                              $ 1,330,854     $ 1,257,839            5.8 %
Total investments                             263,259         149,406           76.2 %
Loans held for sale                             7,472           7,234            3.3 %
Loans, net of unearned income                 822,714         872,723           -5.7 %
Allowance for loan losses                      13,805          12,574            9.8 %
Total deposits                              1,113,045       1,049,011            6.1 %

Total operating revenue1                  $    68,581     $    66,026            3.9 %
Net interest income                            37,884          35,930            5.4 %
Loan loss provision                             1,050           4,500          -76.7 %
Noninterest income                             30,697          30,096            2.0 %
Noninterest expense                            44,808          43,087            4.0 %
Net income                                     18,277          14,944           22.3 %
Diluted earnings per share                       2.56            1.96           30.6 %





1 Operating income is net interest income plus non-interest income.




Net interest income was $37.9 million for 2021 compared to $35.9 million for
2020, an increase of $2.0 million or 5.4 percent. Average earning assets
increased to $1.24 billion in 2021, compared to $1.07 billion in 2020, an
increase of $170.7 million or 15.9 percent due to a higher bond portfolio, which
offset slightly lower loan volume. The consolidated 2021 full year net interest
margin on an FTE basis decreased 30 basis points to 3.06 percent compared to
3.36 percent for the full year of 2020. PPP activity during 2021 increased
margin revenue by $3.0 million for the full year of 2021.

Provision for loan losses of $1.0 million was taken in 2021 compared to $4.5
million taken for 2020. For 2021, net recoveries totaled $0.18 million, or
(0.02) percent of average loans. This charge off level was significantly lower
than 2020, in which net charge offs were $0.68 million or 0.08 percent of
average loans.

Noninterest Income                                  Years Ended December 31,
($ in thousands)                                2021         2020        % Change
Wealth management fees                        $  3,814     $  3,245           17.5 %
Customer service fees                            3,217        2,807           14.6 %
Gains on sale of residential loans & OMSR's     17,255       25,350          -31.9 %
Mortgage loan servicing fees, net                2,940       (5,138 )        157.2 %
Gain on sale of non-mortgage loans                 158          453        
 -65.1 %
Title Insurance income                           2,089        1,913            9.2 %
Other                                            1,224        1,466          -16.5 %
Total noninterest income                      $ 30,697     $ 30,096            2.0 %




                                       40




Total noninterest income was $30.7 million for 2021 compared to $30.1 million
for 2020, representing an increase of $0.6 million, or 2.0 percent,
year-over-year. Although mortgage gain on sale was down from the record year in
2020 by $8.1 million, or 31.9 percent, the Company was able to offset that
reduction by recapture of mortgage servicing rights of $3.9 million during 2021.
The Company sold $489.4 million of originated mortgages into the secondary
market in 2021, which allowed our serviced loan portfolio to grow to $1.36
billion at December 31, 2021 from $1.30 billion at December 31, 2020. The higher
servicing balance of the portfolio led to the 5.6 percent increase in mortgage
loan servicing income. Sales of non-mortgage loans (small business and farm
credits) decreased in 2021 as compared to 2020, as SBA activity continued to be
focused on the PPP initiative. The Company expanded its wealth management assets
under management to $618.3 million, up $59.9 million, which resulted in a 17.5
percent increase in wealth fee income.

Noninterest Expense                  Years Ended December 31,
($ in thousands)                 2021         2020        % Change
Salaries & employee benefits   $ 26,838     $ 25,397            5.7 %
Net occupancy expense             3,048        2,891            5.4 %
Equipment expense                 3,281        3,186            3.0 %
Data processing fees              2,579        3,055          -15.6 %
Professional fees                 3,027        3,307           -8.5 %
Marketing expense                   784          658           19.1 %
Telephone and communications        581          535            8.6 %
Postage and delivery expense        414          415           -0.2 %
State, local and other taxes      1,175        1,146            2.5 %
Employee expense                    663          535           23.9 %
Other expense                     2,418        1,962           23.2 %
Total noninterest expense      $ 44,808     $ 43,087            4.0 %



Total noninterest expense was $44.8 million for 2021 compared to $43.1 million
for 2020, representing a $1.7 million, or 4.0 percent, increase year-over-year.
Total full-time equivalent employees ended 2021 at 269, which was up 25 from
year end 2020.

Salaries and benefits were driven by the increase in total full time employees
as we filled a number of open positions during the year. We also have seen
higher costs in technology as we have continued to add resources and digital
options for our clients.

Revenue Summary – 2020 vs. 2019

Net income for 2020 was $14.9 million, or $1.96 per diluted share, compared with
net income of $12.0 million and net income available to common of $11.0 million,
or $1.51 per diluted share, for 2019. State Bank reported net income for 2020 of
$16.0 million, which was up from the $12.5 million in net income in 2020. SBFG
Title reported net income for 2020 of $0.6 million, which was up from the $0.3
million in 2019.

Positive results for 2020 included loan growth of $47.2 million, and deposit
growth of $208.8 million. The mortgage banking business line continues to
contribute significant revenues, with residential real estate loan production of
$694.2 million for the year, resulting in $25.4 million of revenue from gains on
sale. The level of mortgage origination was up from the $445.3 million in 2019.
The Company's loans serviced for others ended the year at $1.3 billion, up from
$1.2 billion at December 31, 2019. The Company realized over $1.4 million in
revenue from the PPP initiative.

Operating revenue was up compared to the prior year by $13.2 million, or 25.0
percent, which was impacted by a $3.6 million temporary OMSR impairment. Our
2020 results include the full year impact from SBFG Title with net income of
$0.6 million, and SB Captive, with net income of $0.9 million. Net interest
margin on a fully tax equivalent basis ("FTE") for 2020 was 3.36 percent, down
46 basis points from 2019.

Operating expense was up compared to the prior year by $5.7 million, or 15.2
percent, due to compensation and fringe benefit cost increases as a result of
higher mortgage commission levels. Operating leverage (growth in revenue divided
by growth in operating expense) for the year was a positive 1.6 times.

Net charge offs for 2020 of $0.68 million resulted in a loan loss provision of
$4.5 million, compared to net charge offs of $0.21 million and a $0.8 million
loan loss provision in 2019.


                                       41



Good willIntangible assets and fixed asset purchases

The Company completed its most recent annual goodwill impairment review as of
December 31, 2021. At December 31, 2021, the Company concluded that it was more
likely than not that the fair value of the reporting unit exceeded its carrying
value, resulting in no impairment. The Company's goodwill is further discussed
in Note 8 to the Consolidated Financial Statements.

Management plans to continue from time to time to purchase additional premises
and equipment and improve current facilities to meet the current and future
needs of the Company's customers. These purchases will include buildings,
leasehold improvements, furniture and equipment. Management expects that cash on
hand and cash generated from current operations will fund these capital
expenditures and purchases.

Liquidity


Liquidity relates primarily to the Company's ability to fund loan demand, meet
deposit customers' withdrawal requirements and provide for operating expenses.
Sources used to satisfy these needs consist of cash and due from banks,
interest-bearing deposits in other financial institutions, securities
available-for-sale, loans held for sale and borrowings from various sources.
These assets, excluding the borrowings, are commonly referred to as liquid
assets. Liquid assets were $422.9 million at December 31, 2021, compared to
$303.2 million at December 31, 2020.

The Company does not have material cash requirements for capital expenditures
over the next year. Any cash needs for capital requirements would be funded by
cash existing at the Company. It is not anticipated that the Company will be
required to initiate external borrowings in order to fund ongoing operations.

The Company's commercial real estate, first mortgage residential, agricultural
and multi-family mortgage portfolio of $645.1 million at December 31, 2021, can
and is readily used to collateralize borrowings, which is an additional source
of liquidity. Management believes the Company's current liquidity level, without
these borrowings, is sufficient to meet its current and anticipated liquidity
needs. At December 31, 2021, all eligible commercial real estate, residential
first, multi-family mortgage and agricultural loans were pledged under a Federal
Home Loan Bank ("FHLB") blanket lien.

Significant additional off-balance-sheet liquidity is available in the form of
FHLB advances, unused federal funds lines from correspondent banks and the
national certificate of deposit market. Management expects the risk of changes
in off-balance-sheet arrangements to be immaterial to earnings. Based on the
current collateralization requirements of the FHLB, approximately $110.5 million
of additional borrowing capacity existed at December 31, 2021.

At December 31, 2021 and 2020, the Company had $41.0 million in federal funds
lines available. The Company also had $184.9 million in unpledged securities at
December 31, 2021 available for additional borrowings.

The cash flow statements for the periods presented provide an indication of the
Company's sources and uses of cash as well as an indication of the ability of
the Company to maintain an adequate level of liquidity. A discussion of the cash
flow statements for 2021 and 2020 follows:


The Company experienced positive cash flows from operating activities in 2021
and 2020. Net cash from operating activities was $17.3 million and $23.9 million
for the years ended December 31, 2021 and 2020, respectively. Significant
operating items for 2021 included gain on sale of loans of $17.4 million and net
income of $18.3 million. Cash provided by the sale of loans held for sale were
$490.6 million. Cash used in the origination of loans held for sale were $478.1
million.



The Company experienced negative cash flows from investing activities in 2021
and 2020. Net cash used in investing activities was $72.0 million and $57.2
million for the years ended December 31, 2021 and 2020, respectively. The
changes for 2021 include the purchase of available-for-sale securities of $170.7
million, and net decrease in loans of $48.5 million. The changes for 2020
include the purchase of available-for-sale securities of $129.8 million and net
increase in loans of $31.7 million. The Company had proceeds from repayments,
maturities, sales and calls of securities of $50.5 million and $84.0 million in
2021 and 2020, respectively.

The Company experienced positive cash flows from financing activities in 2021
and 2020. Net cash from financing activities was $63.6 million and $146.9
million for the years ended December 31, 2021 and 2020, respectively. Positive
cash flows of $64.0 million and $157.7 million is attributable to the change in
deposits for 2021 and 2020, respectively.


                                       42




The Company uses an Economic Value of Equity ("EVE") analysis to measure risk in
the balance sheet incorporating all cash flows over the estimated remaining life
of all balance sheet positions. The EVE analysis calculates the net present
value of the Company's assets and liabilities in rate shock environments that
range from -100 basis points to +400 basis points. The results of this analysis
are reflected in the following table.

                 Economic Value of Equity
                     December 31, 2021
                    ($ in thousands)
Change in rates     $ Amount      $ Change      % Change
+400 basis points   $ 278,254     $  35,684         14.71 %
+300 basis points     273,190        30,620         12.62 %
+200 basis points     265,711        23,142          9.54 %
+100 basis points     256,110        13,540          5.58 %
Base Case             242,570             -             -
-100 basis points     217,281       (25,289 )      -10.43 %




                 Economic Value of Equity
                     December 31, 2020
                    ($ in thousands)
Change in rates     $ Amount      $ Change      % Change
+400 basis points   $ 243,779     $  61,586         33.80 %
+300 basis points     231,590        49,398         27.11 %
+200 basis points     217,936        35,743         19.62 %
+100 basis points     202,260        20,067         11.01 %
Base Case             182,193             -             -
-100 basis points     154,509       (27,684 )      -15.19 %

© Edgar Online, source Previews

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Global commodity price hikes could jeopardize inflation target: BB https://rrreading.com/global-commodity-price-hikes-could-jeopardize-inflation-target-bb/ Wed, 02 Mar 2022 15:35:00 +0000 https://rrreading.com/global-commodity-price-hikes-could-jeopardize-inflation-target-bb/ When the money supply increases and the demand continues to increase, the prices of various products and …]]>

TBS Report

March 02, 2022, 9:35 p.m.

Last modification: March 2, 2022, 9:38 PM

When the money supply increases and the demand continues to increase, the prices of various products and services may also increase. Photo: Collected

“>

When the money supply increases and the demand continues to increase, the prices of various products and services may also increase. Photo: Collected

Bangladesh Bank Monetary Policy Review

  • Driven by the non-food component, headline CPI inflation rose to 6.05% in December 2021

  • Year-over-year average CPI inflation climbs to 5.55% in December 2021, slightly above the 5.30% target set for FY22

  • Price pressure is expected to continue for some time

  • Robust import growth, coupled with recent growth moderation, growth in inward remittances could create an unfavorable balance of payments position

Bangladesh’s economy has rebounded strongly from the pandemic-induced slowdown, but recent surges in global commodity prices – aided by ongoing geopolitical disputes – could create price pressure for the country, forcing the government to miss its inflation target, observes the Bangladesh Bank. .

In its 2021 monetary policy review, released on Wednesday, the central bank also addressed a number of risks, including negative pressure on the balance of payments amid high imports and the severity of the ongoing pandemic, which could cloud growth prospects.

The Bangladesh Bank, however, has hinted that it will continue the current expansionary and accommodative monetary stance as other global central banks opt for money supply compression to curb inflation.

“Recent global commodity price increases amid ongoing geopolitical disputes could put inflationary pressures in the coming days, making it difficult to keep CPI inflation within the target set for FY22.” , says the review report.

“Driven by the non-food component, headline CPI inflation trended upwards in the first half of FY22, reaching 6.05% (point-to-point) in December 2021, mainly due to the pass-through of high world commodity prices to supply. shocks, higher shipping costs and the ripple effect of a recent upward fuel price adjustment (diesel and kerosene) in the domestic market.

Headline inflation is the raw inflation figure reported by the Consumer Price Index (CPI) published monthly by the Bureau of Labor Statistics. The CPI calculates the cost of buying a fixed basket of goods, in order to determine the level of inflation that occurs throughout the economy.

“Similarly, the year-over-year average CPI inflation climbed to 5.55% in December 2021, slightly above the 5.30% target for FY22.”

“Price pressure is expected to continue for some time and may miss the FY22 target,” the report said.

The robust growth in imports in addition to the recent moderation in the growth of inward remittances could create an unfavorable position in the balance of payments, according to the report.

The current account (CA) balance recorded a large deficit of $8.2 billion in the first half of the current fiscal year compared to a surplus of $3.52 billion in the corresponding period of the previous year due to a decline in remittances and a widening trade balance in the face of a faster increase in import payments than export receipts, according to the report.

Despite a growing surplus in the financial account, the overall balance showed a deficit of $1.8 billion, creating downward pressure on the exchange rate during this period.

The central bank’s official foreign exchange reserve stood at $46.2 billion at end-December 2021, equivalent to 5.6 months’ forward-looking import payments.

Addressing credit demand, the review report indicates that the growth of credit flows to the private sector continued to accelerate, reaching 10.68% at the end of the first half of FY22, helped by the recovery of global demand on the one hand and the low global cost of credit on the other hand. The other.

An acceleration in private credit growth and the catching-up measures taken by the Bangladesh Bank to streamline liquidity in the banking system have together pushed up interest rates in the interbank market.

By contrast, interest rates in the retail market remained subdued.

The central bank in its review report observed a strong recovery in the country’s economy.

“Despite slow and uneven global economic recovery trends, Bangladesh’s economy exerted a strong rebound with real GDP growth of 6.94% in FY21 after the economic fallout from the Covid-19 pandemic. 19, helped by well-coordinated monetary and fiscal policies, better management of the pandemic situation and renewed business confidence.

“The speed of this recovery appears to have strengthened further in the first half of FY22, despite the emergence of the Omicron variant of Covid-19, reflected by increased import and export demand, a peak in demand for private credit and strong growth in large- and medium-scale manufacturing.”

Amid the declining rate of Covid-19 infections, the ongoing extended vaccination program, continued growth-supporting fiscal and monetary measures, as well as solid import and export growth, are expected to contribute to further strengthen the economic recovery by achieving real GDP growth of 7.2%, a target set for FY22, the report said.

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Calls on the United States to formalize a mechanism for high-level dialogue with the Pacific https://rrreading.com/calls-on-the-united-states-to-formalize-a-mechanism-for-high-level-dialogue-with-the-pacific/ Wed, 16 Feb 2022 19:36:24 +0000 https://rrreading.com/calls-on-the-united-states-to-formalize-a-mechanism-for-high-level-dialogue-with-the-pacific/


Tingika Elikana. PHOTO: CI NEWS/18081629

The Cook Islands, through Associate Minister of Foreign Affairs and Immigration, Tingika Elikana, has called on the United States to formalize a high-level dialogue mechanism with the Pacific if it commits to deepening their engagement with the Pacific.

The call was made during a roundtable last Friday co-hosted by Acting Prime Minister and Attorney General of Fiji, Aiyaz Sayed-Khaiyum, and US Secretary of State (SoS), Antony J. Blinken, on the sidelines of SoS Blinken’s visit to Fiji.

The roundtable included a number of Pacific leaders, many of whom called for greater U.S. engagement in the region, including on climate change, economic resilience, ocean cooperation and regional integration.

Elikana offered three suggestions that could support deeper engagement between the region and the United States and build economic resilience in the Blue Pacific. These included a large-scale, multi-year economic stimulus program for the Pacific funded by Pacific development partners, including the United States, to aid recovery from the economic devastation caused by the COVID-19 pandemic; an expanded program of ocean cooperation between the United States and the Pacific; and the formalization of a high-level dialogue mechanism between the United States and the Pacific, similar to that of Japan’s triennial Pacific Island Leaders Meeting (PALM).

The Cook Islands’ various ocean-related cooperation agreements with the United States, including the United States-Pacific Multilateral Fisheries Treaty, are a cornerstone of their relationship with the United States.

There is a proud history of close bilateral cooperation in fisheries and maritime surveillance and enforcement between the two governments operating under the 2008 Agreement between the Government of the United States of America and the Government of the Islands Cook regarding cooperation in joint maritime surveillance operations’.

According to Marine Resources Secretary Pamela Maru, the 2008 agreement “has provided a valuable platform for many activities over the years in the Cook Islands Exclusive Economic Zone, and training opportunities for Cook Islands officers. with the U.S. Coast Guard in bilateral and regional operations throughout the region.”

More recently, the US Coast Guard Cutter Juniper has been patrolling the Cook Islands EEZ and the high seas to help deter illegal, unreported, and unregulated (IUU) fishing activities.

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BLACKSTONE MORTGAGE TRUST, INC. MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-K) https://rrreading.com/blackstone-mortgage-trust-inc-management-report-and-analysis-of-financial-position-and-results-of-operations-form-10-k/ Wed, 09 Feb 2022 11:54:06 +0000 https://rrreading.com/blackstone-mortgage-trust-inc-management-report-and-analysis-of-financial-position-and-results-of-operations-form-10-k/
The following discussion should be read in conjunction with the consolidated
financial statements and notes thereto appearing elsewhere in this Annual Report
on Form 10-K. In addition to historical data, this discussion contains
forward-looking statements about our business, operations and financial
performance based on current expectations that involve risks, uncertainties and
assumptions. Our actual results may differ materially from those in this
discussion as a result of various factors, including but not limited to those
discussed in Part, 1. Item 1A, "Risk Factors" in this Annual Report on Form
10-K.
Introduction
Blackstone Mortgage Trust is a real estate finance company that originates
senior loans collateralized by commercial real estate in North America, Europe,
and Australia. Our portfolio is composed primarily of loans secured by
high-quality, institutional assets in major markets, sponsored by experienced,
well-capitalized real estate investment owners and operators. These senior loans
are capitalized by accessing a variety of financing options, including borrowing
under our credit facilities, issuing CLOs or single-asset securitizations, and
syndicating senior loan participations, depending on our view of the most
prudent financing option available for each of our investments. We are not in
the business of buying or trading securities, and the only securities we own are
the retained interests from our securitization financing transactions, which we
have not financed. We are externally managed by BXMT Advisors L.L.C., or our
Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a real estate
investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under
the symbol "BXMT."
We benefit from the deep knowledge, experience and information advantages of our
Manager, which is a part of Blackstone's real estate platform. Blackstone has
built the world's preeminent global real estate business, with a proven track
record of successfully navigating market cycles and emerging stronger through
periods of volatility. The market-leading real estate expertise derived from the
strength of the Blackstone platform deeply informs our credit and underwriting
process, and we believe gives us the tools to expertly manage the assets in our
portfolio and work with our borrowers throughout periods of economic stress and
uncertainty.
We conduct our operations as a REIT for U.S. federal income tax purposes. We
generally will not be subject to U.S. federal income taxes on our taxable income
to the extent that we annually distribute all of our net taxable income to
stockholders and maintain our qualification as a REIT. We also operate our
business in a manner that permits us to maintain an exclusion from registration
under the Investment Company Act of 1940, as amended. We are organized as a
holding company and conduct our business primarily through our various
subsidiaries.
Recent Developments

COVID-19

The novel coronavirus, or COVID-19, pandemic has evolved from its emergence in
early 2020, so has its global impact. Many countries have re-instituted, or
strongly encouraged, varying levels of quarantines and restrictions on travel
and in some cases have at times limited operations of certain businesses and
taken other restrictive measures designed to help slow the spread of COVID-19
and its variants. Governments and businesses have also instituted vaccine
mandates and testing requirements for employees. While vaccine availability and
uptake has increased, the longer-term macro-economic effects on global supply
chains, inflation, labor shortages and wage increases continue to impact many
industries, including the collateral underlying certain of our loans. Moreover,
with the potential for new strains of COVID-19 to emerge, governments and
businesses may re-impose aggressive measures to help slow its spread in the
future. For this reason, among others, as the COVID-19 pandemic continues, the
potential global impacts are uncertain and difficult to assess.

Reference rate reform


LIBOR and certain other floating rate benchmark indices to which our floating
rate loans and other loan agreements are tied, including, without limitation,
the Euro Interbank Offered Rate, or EURIBOR, the Stockholm Interbank Offered
Rate, or STIBOR, the Australian Bank Bill Swap Reference Rate, or BBSY, the
Canadian Dollar Offered Rate, or CDOR, and the Swiss Average Rate Overnight, or
SARON, or collectively, IBORs, are the subject of recent national, international
and regulatory guidance and proposals for reform. As of December 31, 2021, the
ICE Benchmark Association, or IBA, ceased publication of all non-USD LIBOR and
previously announced its intention to cease publication of remaining U.S. dollar
LIBOR settings immediately after June 30, 2023.

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The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates
Committee, a steering committee comprised of large U.S. financial institutions,
has identified the Secured Overnight Financing Rate, or SOFR, a new index
calculated using short-term repurchase agreements backed by Treasury securities,
as its preferred alternative rate for USD LIBOR. Market participants have
started to transition to the Sterling Overnight Index Average, or SONIA, in line
with guidance from the U.K. regulators. As of December 31, 2021, one-month SOFR
is utilized as the floating benchmark rate on 16 of our loans, the financing
provided on the 2020 FL3 and 2020 FL2 CLOs, plus a credit spread adjustment, and
one of our credit facilities. Additionally, as of December 31, 2021, daily
compounded SONIA is utilized as the floating benchmark rate on nine of our loans
and five of our credit facilities.

At this time, it is not possible to predict how markets will respond to SOFR,
SONIA, or other alternative reference rates as the transition away from USD
LIBOR and GBP LIBOR proceeds. Despite the LIBOR transition in other markets,
benchmark rate methodologies in Europe, Australia, Canada, and Switzerland have
been reformed and rates such as EURIBOR, STIBOR, BBSY, CDOR, and SARON may
persist as International Organization of Securities Commissions, or IOSCO,
compliant reference rates moving forward. However, multi-rate environments may
persist in these markets as regulators and working groups have suggested market
participants adopt alternative reference rates.

Refer to "Part I. Item 1A. Risk Factors-Risks Related to Our Lending and
Investment Activities-The recent and expected discontinuation of currently used
financial reference rates and use of alternative replacement reference rates may
adversely affect net interest income related to our loans and investments or
otherwise adversely affect our results of operations, cash flows and the market
value of our investments." of this Annual Report on Form 10-K.

2021 Highlights
Operating results:
•Net income of $419.2 million, or $2.77 per share, and Distributable Earnings of
$396.7 million, or $2.62 per share, with dividends declared of $383.9 million,
or $2.48 per share. Net income includes a $39.9 million decrease to the current
expected credit loss, or CECL, reserve that is excluded from Distributable
Earnings, as further described below.
•Increased book value per share $0.80 to $27.22 as of December 31, 2021, which
is net of a $0.78 cumulative CECL reserve.
Loan portfolio:
•Loan originations of $14.6 billion. During the year we had loan fundings of
$12.9 billion and loan repayments of $7.2 billion, resulting in net fundings of
$5.7 billion.
•Portfolio of 189 investments as of December 31, 2021, with a weighted-average
origination loan-to-value ratio of 64.4% and weighted-average all-in yield of +
3.54%.
•Maintained our disciplined focus on institutional quality assets and sponsors
while accelerating our activities in sectors and markets with the highest
potential for growth, including increasing our portfolio exposure to multifamily
to 24% from 10% and to the Sunbelt to 27% from 19%.
Capital markets and financing activity:
•Closed $10.5 billion of new financings under our secured debt facilities,
adding two new credit facilities with innovative structures to finance our
investments.
•Closed a $1.0 billion collateralized loan obligation, or CLO, securitization
resulting in an aggregate $3.5 billion of our loans financed through our CLO
securitizations as of December 31, 2021.
•Increased the borrowings under our senior term loan facilities by an aggregate
$300.0 million, decreased the spread on our B-2 senior term loan facility by
2.00% to L + 2.75%, and issued $400.0 million of 3.75% senior secured notes due
2027.
I. Key Financial Measures and Indicators
As a real estate finance company, we believe the key financial measures and
indicators for our business are earnings per share, dividends declared,
Distributable Earnings, and book value per share. For the three months ended
December 31, 2021, we recorded earnings per share of $0.76, declared a dividend
of $0.62 per share, and reported $0.78 per share of Distributable Earnings. In
addition, our book value as of December 31, 2021 was $27.22 per share, which is
net of a $0.78 cumulative CECL reserve. For the year ended December 31, 2021, we
recorded earnings per share of $2.77, declared aggregate dividends of $2.48 per
share, and reported $2.62 per share of Distributable Earnings.
As further described below, Distributable Earnings is a measure that is not
prepared in accordance with accounting principles generally accepted in the
United States of America, or GAAP, which helps us to evaluate our performance
excluding the effects of certain transactions and GAAP adjustments that we
believe are not necessarily indicative of our
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current loan portfolio and operations. In addition, Distributable Earnings is a
performance metric we consider when declaring our dividends.
Earnings Per Share and Dividends Declared
The following table sets forth the calculation of basic and diluted net income
per share and dividends declared per share ($ in thousands, except per share
data):


                                                             Three months                   Year Ended December 31,
                                                            ended December
                                                               31, 2021                    2021                    2020
Net income (1)                                             $      123,940          $     419,193              $    137,670

Weighted average number of shares outstanding, basic and diluted 162,056,782

                151,521,941           141,795,977
Net income per share, basic and diluted                    $         0.76          $        2.77              $       0.97
Dividends declared per share                               $         0.62          $        2.48              $       2.48




(1)Represents net income attributable to Blackstone Mortgage Trust.
Distributable Earnings
Distributable Earnings is a non-GAAP measure, which we define as GAAP net income
(loss), including realized gains and losses not otherwise recognized in current
period GAAP net income (loss), and excluding (i) non-cash equity compensation
expense, (ii) depreciation and amortization, (iii) unrealized gains (losses),
and (iv) certain non-cash items. Distributable Earnings may also be adjusted
from time to time to exclude one-time events pursuant to changes in GAAP and
certain other non-cash charges as determined by our Manager, subject to approval
by a majority of our independent directors. Distributable Earnings mirrors the
terms of our management agreement between our Manager and us, or our Management
Agreement, for purposes of calculating our incentive fee expense.
Our CECL reserve has been excluded from Distributable Earnings consistent with
other unrealized gains (losses) pursuant to our existing policy for reporting
Distributable Earnings. We expect to only recognize such potential credit losses
in Distributable Earnings if and when such amounts are deemed nonrecoverable
upon a realization event. This is generally at the time a loan is repaid, or in
the case of foreclosure, when the underlying asset is sold, but
non-recoverability may also be concluded if, in our determination, it is nearly
certain that all amounts due will not be collected. The realized loss amount
reflected in Distributable Earnings will equal the difference between the cash
received, or expected to be received, and the book value of the asset, and is
reflective of our economic experience as it relates to the ultimate realization
of the loan.
We believe that Distributable Earnings provides meaningful information to
consider in addition to our net income (loss) and cash flow from operating
activities determined in accordance with GAAP. We believe Distributable Earnings
is a useful financial metric for existing and potential future holders of our
class A common stock as historically, over time, Distributable Earnings has been
a strong indicator of our dividends per share. As a REIT, we generally must
distribute annually at least 90% of our net taxable income, subject to certain
adjustments, and therefore we believe our dividends are one of the principal
reasons stockholders may invest in our class A common stock. Refer to Note 14 to
our consolidated financial statements for further discussion of our distribution
requirements as a REIT. Further, Distributable Earnings helps us to evaluate our
performance excluding the effects of certain transactions and GAAP adjustments
that we believe are not necessarily indicative of our current loan portfolio and
operations, and is a performance metric we consider when declaring our
dividends.
Distributable Earnings does not represent net income (loss) or cash generated
from operating activities and should not be considered as an alternative to GAAP
net income (loss), or an indication of our GAAP cash flows from operations, a
measure of our liquidity, or an indication of funds available for our cash
needs. In addition, our methodology for calculating Distributable Earnings may
differ from the methodologies employed by other companies to calculate the same
or similar supplemental performance measures, and accordingly, our reported
Distributable Earnings may not be comparable to the Distributable Earnings
reported by other companies.
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The following table provides a reconciliation of distributable earnings to GAAP net income (in thousands of dollars, except per share data):


                                                        Three Months                   Year Ended December 31,
                                                       Ended December
                                                          31, 2021                    2021                    2020
Net income(1)                                         $      123,940          $     419,193              $    137,670
Charge-offs of current expected credit loss                    (14,427)                   (14,427)                     -

reserve(2)

(Decrease) increase in current expected credit loss               9,568                   (39,864)               167,653

Reserve

Non-cash compensation expense                                     7,463                     31,647                34,532
Realized hedging and foreign currency income, net(3)              (668)                      (521)                10,852
Other items                                                         120                        561                 1,487
Adjustments attributable to non-controlling                        (30)                        132                 (204)
interests, net
Distributable Earnings(4)                             $      125,966          $     396,721              $    351,990
Weighted-average shares outstanding, basic and              162,056,782                151,521,941           141,795,977

diluted

Distributable Earnings per share, basic and           $         0.78          $        2.62              $       2.48
diluted(4)




(1)Represents net income attributable to Blackstone Mortgage Trust.
(2)Represents a realized loss related to loan principal amounts deemed
nonrecoverable following a realization event during the three months ended
December 31, 2021. This amount was previously recognized as a component of GAAP
net income as an increase in our current expected credit loss reserve.
(3)For the three months and year ended December 31, 2021, represents realized
gains (losses) on the repatriation of unhedged foreign currency. For the year
ended December 31, 2020, primarily represents the forward points earned on our
foreign currency forward contracts, which reflect the interest rate
differentials between the applicable base rate for our foreign currency
investments and USD LIBOR. These forward contracts effectively convert the rate
exposure to USD LIBOR, resulting in additional interest income earned in U.S.
dollar terms. These amounts were not included in GAAP net income, but rather as
a component of Other Comprehensive Income in our consolidated financial
statements.
(4)Includes favorable Distributable Earnings impact, net of incentive fees, of
$19.1 million, or $0.12 and $0.13 per share for the three months and year ended
December 31, 2021 relating to (i) prepayment income and acceleration of deferred
origination fees related to a certain loan repayment during the three months
ended December 31, 2021 and (ii) the charge-off of a certain previously recorded
current expected credit loss reserve above.
Book Value Per Share
The following table calculates our book value per share ($ in thousands, except
per share data):

                                    December 31, 2021       December 31, 2020
            Stockholders' equity   $        4,588,187      $       

3,886,067

            Shares
            Class A common stock            168,179,798            

146 780 031

            Deferred stock units                363,572                 

306,691

            Total outstanding               168,543,370            

147 086 722

            Book value per share   $            27.22      $            

26.42



II. Loan Portfolio
During the year ended December 31, 2021, we originated or acquired $14.6 billion
of loans. Loan fundings during the year totaled $12.9 billion, including $393.9
million of non-consolidated senior interests. Loan repayments and sales during
the year totaled $7.2 billion, including $475.5 million of non-consolidated
senior interests and the loan held by our non-consolidated securitized debt
obligation. We generated interest income of $854.7 million and incurred interest
expense of $340.2 million during the year, which resulted in $514.5 million of
net interest income during the year ended December 31, 2021.
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Portfolio Overview
The following table details our loan origination activity ($ in thousands):
                                                                         Three Months
                                                                        Ended December            Year Ended
                                                                           31, 2021            December 31, 2021
Loan originations(1)                                                   $    5,966,853          $   14,571,453
Loan fundings(2)                                                       $    5,210,261          $   12,944,396
Loan repayments and sales(3)                                                 (3,530,274)             (7,208,647)
Total net fundings                                                     $    1,679,987          $    5,735,749




(1)Includes new loan originations and additional commitments made under existing
loans.
(2)Loan fundings during the three months and year ended December 31, 2021
include $109.3 million and $393.9 million, respectively, of additional fundings
under related non-consolidated senior interests.
(3)Loan repayments and sales during the three months and year ended December 31,
2021 include $148.3 and $475.5 million, respectively, of additional repayments
or reduction of loan exposure under related non-consolidated senior interests
and the loan held by our non-consolidated securitized debt obligation.
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The following table details the overall statistics of our investment portfolio at December 31, 2021 (in thousands of dollars):

                                                                                            Total Investment Exposure
                                                Balance Sheet              Loan                   Other                    Total Investment
                                                Portfolio(1)          Exposure(1)(2)         Investments(3)                    Portfolio
Number of investments                                   188                    188                       1                             189
Principal balance                              $ 22,156,437          $  23,669,111          $      379,302                $     24,048,413
Net book value                                 $ 21,878,338          $  21,878,338          $       78,013                $     21,956,351
Unfunded loan commitments(4)                   $  4,180,128          $   4,924,287          $            -                $      4,924,287
Weighted-average cash coupon(5)                      + 3.19  %              + 3.22  %               + 2.75  %                       + 3.22  %
Weighted-average all-in yield(5)                     + 3.52  %              + 3.55  %               + 2.86  %                       + 3.54  %
Weighted-average maximum maturity (years)(6)            3.4                    3.4                     3.4                             3.4
Origination loan to value (LTV)(7)                     64.9  %                64.8  %                 42.6  %                         64.4  %




(1)Excludes investment exposure to the $79.2 million subordinate position we own
in the $379.3 million 2018 Single Asset Securitization. Refer to Notes 4 and 17
to our consolidated financial statements for further discussion of the 2018
Single Asset Securitization.
(2)In certain instances, we finance our loans through the non-recourse sale of a
senior loan interest that is not included in our consolidated financial
statements. Total loan exposure encompasses the entire loan we originated and
financed, including $1.5 billion of such non-consolidated senior interests that
are not included in our balance sheet portfolio.
(3)Includes investment exposure to the $379.3 million 2018 Single Asset
Securitization. We do not consolidate the 2018 Single Asset Securitization on
our consolidated financial statements, and instead reflect our $79.2 million
subordinate position as a component of other assets on our consolidated balance
sheet. Refer to Notes 4 and 17 to our consolidated financial statements for
further discussion of the 2018 Single Asset Securitization.
(4)Unfunded commitments will primarily be funded to finance our borrowers'
construction or development of real estate-related assets, capital improvements
of existing assets, or lease-related expenditures. These commitments will
generally be funded over the term of each loan, subject in certain cases to an
expiration date.
(5)The weighted-average cash coupon and all-in yield are expressed as a spread
over the relevant floating benchmark rates, which include USD LIBOR, SOFR, GBP
LIBOR, SONIA, EURIBOR, and other indices as applicable to each investment. As of
December 31, 2021, 98% of our investments by total investment exposure earned a
floating rate of interest, primarily indexed to USD LIBOR. The other 2% of our
investments earned a fixed rate of interest, which we reflect as a spread over
the relevant floating benchmark rates, as of December 31, 2021, for purposes of
the weighted-averages. In addition to cash coupon, all-in yield includes the
amortization of deferred origination and extension fees, loan origination costs,
and purchase discounts, as well as the accrual of exit fees. Excludes a loan
accounted for under the cost-recovery method.
(6)Maximum maturity assumes all extension options are exercised by the borrower,
however our loans and other investments may be repaid prior to such date. As of
December 31, 2021, 56% of our loans and other investments by total investment
exposure were subject to yield maintenance or other prepayment restrictions and
44% were open to repayment by the borrower without penalty.
(7)Based on LTV as of the dates loans and other investments were originated or
acquired by us.


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The following table details the index floor rates for our loan portfolio as of December 31, 2021 (in thousands of dollars):

                              Loans Receivable Principal Balance
Index Rate Floors           USD           Non-USD(1)          Total
Fixed Rate             $     37,500      $   344,696      $    382,196
0.00% or no floor(2)        4,224,778        5,444,841         9,669,619
0.01% to 0.25% floor        7,125,069          447,339         7,572,408
0.26% to 1.00% floor        1,259,076          501,764         1,760,840
1.01% or more floor         4,439,258          224,092         4,663,350
Total(3)(4)            $ 17,085,681      $ 6,962,732      $ 24,048,413




(1)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar,
Canadian Dollar, and Swiss Franc currencies.
(2)Includes a $286.3 million loan accounted for under the cost-recovery method.
(3)Includes investment exposure to the $79.2 million subordinate position we own
in the $379.3 million 2018 Single Asset Securitization. Refer to Notes 4 and 17
to our consolidated financial statements for further discussion of the 2018
Single Asset Securitization.
(4)In certain instances, we finance our loans through the non-recourse sale of a
senior loan interest that is not included in our consolidated financial
statements. Total loan exposure encompasses the entire loan we originated and
financed, including $1.5 billion of such non-consolidated senior interests that
are not included in our balance sheet portfolio.
(5)As of December 31, 2021, the weighted-average index rate floor of our loan
portfolio was 0.42%. Excluding 0.0% index rate floors, the weighted-average
index rate floor was 0.70%. As of December 31, 2020, the weighted-average index
rate floor of our loan portfolio was 0.82%. Excluding 0.0% index rate floors,
the weighted-average index rate floor was 1.35%.

The following table details the floating benchmark rates for our investment
portfolio as of December 31, 2021 (total investment portfolio amounts in
thousands):
    Investment                                      Total Investment
       Count                   Currency                Portfolio               Floating Rate Index(1)             Cash Coupon(2)              All-in Yield(2)
        156                       $               $      17,085,680              USD LIBOR / SOFR(3)                  + 3.12%                     + 3.43%
         9                        €               €       2,777,193                    EURIBOR                        + 3.01%                     + 3.39%
        17                        £               £       1,956,619             GBP LIBOR / SONIA(4)                  + 3.84%                     + 4.23%
         7                        $               $       1,157,368                   OTHER(5)                        + 3.73%                     + 4.02%

        189                                       $      24,048,413               Applicable Index                    + 3.22%                     + 3.54%




(1)We use foreign currency forward contracts to protect the value or fix the
amount of certain investments or cash flows in terms of the U.S. dollar. We earn
forward points on our forward contracts that reflect the interest rate
differentials between the applicable base rate for our foreign currency
investments and USD LIBOR. These forward contracts effectively convert the
foreign currency rate exposure for such investments to USD LIBOR.
(2)The cash coupon and all-in yield of our fixed rate loans are reflected as a
spread over USD LIBOR for purposes of the weighted-averages. In addition to cash
coupon, all-in yield includes the amortization of deferred origination and
extension fees, loan origination costs, and purchase discounts, as well as the
accrual of exit fees. Excludes a loan accounted for under the cost-recovery
method.
(3)As of December 31, 2021, $15.6 billion and $1.5 billion of loans were indexed
to USD LIBOR and SOFR, respectively. The remaining $37.5 million of our United
States Dollar loans are fixed rate. As of December 31, 2021, one-month USD LIBOR
was 0.10% and SOFR was 0.05%.
(4)As of December 31, 2021, £874.8 million and £848.4 million of loans were
indexed to SONIA and GBP LIBOR, respectively. The remaining £233.4 million of
our British Pound Sterling loans are fixed rate. As of December 31, 2021, SONIA
was 0.19% and three-month GBP LIBOR was 0.26%.
(5)Includes floating rate loans indexed to STIBOR, BBSY, CDOR, and SARON
indices.

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The charts below detail the geographic distribution and types of properties
securing our investment portfolio, as of December 31, 2021:
[[Image Removed: bxmt-20211231_g3.jpg]]
Refer to section VI of this Item 7 for details of our loan portfolio, on a
loan-by-loan basis.
Portfolio Management
During the year ended December 31, 2021, we collected 100.0% of the contractual
interest payments that were due under our loans, with virtually no interest
deferrals, including with respect to loans collateralized by hospitality assets,
which we believe demonstrates the overall strength of our loan portfolio and the
commitment and financial wherewithal of our borrowers generally, which are
primarily affiliated with large real estate private equity funds and other
strong, well-capitalized, experienced sponsors.
We maintain a robust asset management relationship with our borrowers and
utilize these relationships to maximize the performance of our portfolio,
including during periods of volatility, such as the COVID-19 pandemic. We
believe that we will benefit from these relationships and from our long-standing
core business model of originating senior loans collateralized by large assets
in major markets with experienced, well-capitalized institutional sponsors. Our
investment portfolio's low origination weighted-average LTV of 64.4% as of
December 31, 2021 reflects significant equity value that our sponsors are
motivated to protect through periods of cyclical disruption. While we believe
the principal amounts of our loans are generally adequately protected by
underlying collateral value, there is a risk that we will not realize the entire
principal value of certain investments.
Our Manager's portfolio monitoring and asset management operations benefit from
the deep knowledge, experience, and information advantages derived from its
position as part of Blackstone's real estate platform. Blackstone has built the
world's preeminent global real estate business, with a proven track record of
successfully navigating market cycles and emerging stronger through periods of
volatility. The market-leading real estate expertise derived from the strength
of the Blackstone platform deeply informs our credit and underwriting process,
and gives us the tools to expertly asset manage our portfolio and work with our
borrowers throughout periods of economic stress and uncertainty.
As discussed in Note 2 to our consolidated financial statements, our Manager
performs a quarterly review of our loan portfolio, assesses the performance of
each loan, and assigns it a risk rating between "1" and "5," from less risk to
greater risk. The weighted-average risk rating of our total loan exposure was
2.8 and 3.0 as of December 31, 2021 and December 31, 2020, respectively. The
decrease in risk rating reflects the ongoing recovery from COVID-19 and the
improvement of our portfolio's credit.
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The following table breaks down the principal balance and total loan exposure balances based on our internal risk ratings (in thousands of dollars):

                                                       December 31, 2021
          Risk                         Number                               Total Loan
          Rating                      of Loans       Net Book Value       Exposure(1)(2)
          1                               8         $       642,776      $       645,854
          2                              28                 5,200,533            5,515,250
          3                              141               13,604,027           14,944,045
          4                              10                 2,270,872            2,277,653
          5                               1                   284,809              286,309
          Loans receivable               188        $    22,003,017      $    23,669,111
          CECL reserve                                      (124,679)
          Loans receivable, net                     $    21,878,338




(1)In certain instances, we finance our loans through the non-recourse sale of a
senior loan interest that is not included in our consolidated financial
statements. See Note 2 to our consolidated financial statements for further
discussion. Total loan exposure encompasses the entire loan we originated and
financed, including $1.5 billion of such non-consolidated senior interests as of
December 31, 2021.
(2)Excludes investment exposure to the $379.3 million 2018 Single Asset
Securitization. Refer to Notes 4 and 17 to our consolidated financial statements
for details of the subordinate position we own in the 2018 Single Asset
Securitization.
Current Expected Credit Loss Reserve
The CECL reserve required by GAAP reflects our current estimate of potential
credit losses related to our loans and debt securities included in our
consolidated balance sheets. Other than a few narrow exceptions, GAAP requires
that all financial instruments subject to the CECL model have some amount of
loss reserve to reflect the GAAP principal underlying the CECL model that all
loans, debt securities, and similar assets have some inherent risk of loss,
regardless of credit quality, subordinate capital, or other mitigating factors.

During the year ended December 31, 2021, we recorded an aggregate $39.9 million
decrease in the CECL reserve related to loans receivable, debt securities, and
unfunded loan commitments, and $14.4 million of charge-offs, bringing our total
reserve to $131.0 million as of December 31, 2021. This CECL reserve reflects
the macroeconomic impact of the COVID-19 pandemic on commercial real estate
markets generally, as well as certain loans assessed for impairment in our
portfolio. The decrease in the CECL reserve during the year ended December 31,
2021 reflects the ongoing market recovery from COVID-19 and the resulting
improvement in the performance of the collateral assets underlying our
portfolio. See Notes 2 and 3 to our consolidated financial statements for
further discussion of our CECL reserve.
During 2020 and 2021, we entered into loan modifications related to a
multifamily asset in New York City, which are classified as troubled debt
restructurings under GAAP. During the three months ended June 30, 2020, we
recorded a $14.8 million CECL reserve on this loan. During the three months
ended December 31, 2021, the borrower committed significant additional capital
to the property and engaged new management to oversee property operations, and
we reduced the loan's outstanding principal balance to $37.5 million. As a
result of the modification, we charged-off $14.4 million of the $14.8 million
asset-specific CECL reserve we recorded on this loan during the three months
ended June 30, 2020, and reversed the remaining $360,000 CECL reserve. We have
no remaining asset-specific CECL reserve against this loan as of December 31,
2021. The loan is paying interest income current and we resumed income accrual
for this loan as of December 31, 2021. See Note 2 to our consolidated financial
statements for further discussion on the CECL reserve.
During the third quarter of 2020, we entered into a loan modification related to
a hospitality asset in New York City, which is classified as a troubled debt
restructuring under GAAP. During the three months ended June 30, 2020, we
recorded $54.9 million CECL reserve on this loan, which was unchanged as of
December 31, 2021. As of July 1, 2020, the income accrual on this loan was
suspended and no income was recorded subsequent to July 1, 2020. This loan has
an outstanding principal balance of $286.3 million, net of cost-recovery
proceeds, as of December 31, 2021. The CECL reserve was recorded based on our
estimation of the fair value of the loan's underlying collateral as of
December 31, 2021.

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Multifamily Joint Venture
As of December 31, 2021, our Multifamily Joint Venture held $746.9 million of
loans, which are included in the loan disclosures above. Refer to Note 2 to our
consolidated financial statements for additional discussion of our Multifamily
Joint Venture.
Portfolio Financing
Our portfolio financing consists of secured debt, securitizations, and
asset-specific financings. The following table details our portfolio financing
($ in thousands):
                                             Portfolio Financing
                                        Outstanding Principal Balance
                                  December 31, 2021        December 31, 2020
Secured debt                   $     12,299,580           $        7,896,863
Securitizations(1)                           3,155,727               3,596,980
Asset-specific financings(2)                 1,913,374               1,201,495
Total portfolio financing      $     17,368,681           $       12,695,338




(1)Includes our consolidated securitized debt obligations of $2.9 billion and
our non-consolidated securitized debt obligations of $300.1 million. The
non-consolidated securitized debt obligation represents the senior
non-consolidated investment exposure to the 2018 Single Asset Securitization. We
own the related subordinate position, which is classified as a held-to-maturity
debt security on our balance sheet. Refer to Note 4 and Note 17 to our
consolidated financial statements for details of the 2018 Single Asset
Securitization.
(2)Includes our consolidated asset-specific debt of $400.7 million and our
non-consolidated senior interests of $1.5 billion. The non-consolidated senior
interests provide structural leverage for our net investments which are
reflected in the form of mezzanine loans or other subordinate interests on our
balance sheet and in our results of operations.
Secured Debt
The following table details our outstanding secured debt ($ in thousands):
                                                     Secured Debt
                                                Borrowings Outstanding
                                      December 31, 2021       December 31, 2020
         Secured credit facilities   $       12,299,580      $        7,896,863
         Acquisition facility                           -                       -

         Total secured debt          $       12,299,580      $        7,896,863


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Secured Credit Facilities
The following table details our secured credit facilities as of December 31,
2021 ($ in thousands):
                                        Year Ended
                                    December 31, 2021                                                                 December 31, 2021
                                                                  Total                  Wtd. Avg.                                               Wtd. Avg.                      Net Interest
Spread(1)                           New Financings(2)          Borrowings          All-in Cost(1)(3)(4)               Collateral(5)         All-in Yield(1)(6)                    Margin(7)
+ 1.50% or less                     $     5,306,925          $  7,746,026                       +1.52  %             $  10,193,801                     +3.18  %                         +1.66  %
+ 1.51% to + 1.75%                           1,477,177          2,710,587                       +1.88  %                 3,977,492                     +3.55  %                         +1.67  %
+ 1.76% to + 2.00%                             668,470            998,781                       +2.13  %                 1,458,074                     +4.28  %                         +2.15  %
+ 2.01% or more                                310,991            844,186                       +2.49  %                 1,413,014                     +4.75  %                         +2.26  %
Total                               $     7,763,563          $ 12,299,580                       +1.72  %             $  17,042,381                     +3.49  %                         +1.77  %





(1)The spread, all-in cost, and all-in yield are expressed over the relevant
floating benchmark rates, which include USD LIBOR, SOFR, GBP LIBOR, SONIA,
EURIBOR, and other indices as applicable.
(2)Represents borrowings outstanding as of December 31, 2021 for new financings
during the year ended December 31, 2021, based on the date collateral was
initially pledged to each credit facility.
(3)In addition to spread, the cost includes the associated deferred fees and
expenses related to the respective borrowings.
(4)Represents the weighted-average all-in cost as of December 31, 2021 and is
not necessarily indicative of the spread applicable to recent or future
borrowings.
(5)Represents the principal balance of the collateral assets.
(6)In addition to cash coupon, all-in yield includes the amortization of
deferred origination and extension fees, loan origination costs, and purchase
discounts, as well as the accrual of exit fees.
(7)Represents the difference between the weighted-average all-in yield and
weighted-average all-in cost.
Acquisition Facility
We have a $250.0 million full recourse secured credit facility that is designed
to finance eligible first mortgage originations for up to nine months as a
bridge to term financing without obtaining discretionary lender approval. The
maturity date of the facility is April 4, 2023. As of December 31, 2021, we had
one asset pledged to our acquisition facility and there was an aggregate $147.5
million available to be drawn at our discretion.

Securitizations

The following table details our ongoing securitizations (in thousands of dollars):

Outstanding securitizations

                                                                          December 31, 2021           December 31,
                                                                                                          2020
Securitized debt obligations                                            $     2,855,625                    2,940,638
Non-consolidated securitized debt obligation(1)                                        300,102               656,342
Total securitizations                                                   $     3,155,727              $  3,596,980




(1)These non-consolidated securitized debt obligations represent the senior
non-consolidated investment exposure to the 2018 Single Asset Securitization. We
own the related subordinate position, which is classified as a held-to-maturity
debt security on our balance sheet. Refer to Note 6 and Note 17 to our
consolidated financial statements for details of the 2018 Single Asset
Securitization.
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Securitized Debt Obligations
We have financed certain pools of our loans through collateralized loan
obligations, which include the 2021 FL4 CLO, 2020 FL3 CLO, and 2020 FL2 CLO, or
collectively, the CLOs. The following table details our securitized debt
obligations ($ in thousands):
                                                                                           December 31, 2021
                                                                    Principal               Book                    Wtd. Avg.
Securitized Debt Obligations                      Count               Balance              Value                 Yield/Cost(1)(2)                  Term(3)
2021 FL4 Collateralized Loan Obligation
Collateral assets                                  34             $ 1,000,000          $ 1,000,000                           + 3.42  %              October 2024
Financing provided                                  1                    803,750              797,373                        + 1.66  %                  May 2038
2020 FL3 Collateralized Loan Obligation
Collateral assets                                  18                  1,000,000            1,000,000                        + 3.06  %                  May 2024
Financing provided                                  1                    808,750              804,096                        + 2.10  %             November 2037
2020 FL2 Collateralized Loan Obligation
Collateral assets                                  21                  1,500,000            1,500,000                        + 3.15  %                March 2024
Financing provided                                  1                  1,243,125            1,236,593                        + 1.45  %             February 2038
Total
Collateral assets                                  73             $ 3,500,000          $ 3,500,000                           + 3.20  %
Financing provided(4)                               3             $ 2,855,625          $ 2,838,062                           + 1.69  %





(1)In addition to cash coupon, all-in yield includes the amortization of
deferred origination and extension fees, loan origination costs, purchase
discounts, and accrual of exit fees.
(2)The weighted-average all-in yield and cost are expressed as a spread over the
relevant floating benchmark rates, which include USD LIBOR and SOFR, as
applicable to each securitized debt obligation. As of December 31, 2021, the
floating benchmark rate for the financing provided on the 2020 FL3 and 2020 FL2
CLOs is one-month SOFR, plus a credit spread adjustment of 0.11%. As of
December 31, 2021, the one-month SOFR was 0.05% and one-month USD LIBOR was
0.10%.
(3)Loan term represents weighted-average final maturity, assuming all extension
options are exercised by the borrower. Repayments of securitized debt
obligations are tied to timing of the related collateral loan asset repayments.
The term of these obligations represents the rated final distribution date of
the securitizations.
(4)During the three and twelve months ended December 31, 2021, we recorded $10.8
million and $46.0 million, respectively, of interest expense related to our
securitized debt obligations.
Refer to Note 6 and Note 17 to our consolidated financial statements for
additional details of our securitized debt obligations.









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Non-Consolidated Securitized Debt Obligation
In the third quarter of 2018, we contributed a senior loan to the 2018 Single
Asset Securitization, and invested in the related subordinate position. We do
not consolidate the 2018 Single Asset Securitization on our balance sheet. The
non-consolidated securitized debt obligation provides structural leverage for
our net investment which is reflected as a held-to-maturity debt security and is
included in other assets on our consolidated balance sheets. The following table
details our non-consolidated securitized debt obligations ($ in thousands):
                                                                                                December 31, 2021
Non-Consolidated Securitized Debt                                          Principal                                       Wtd. Avg.                 Wtd. Avg.
Obligation                                             Count                Balance             Book Value               Yield/Cost(1)                Term(2)
Collateral assets                                        1                $ 379,302                        n/a                    + 2.86  %             June 2025
Financing provided                                       1                $ 300,102                        n/a                    + 2.66  %             June 2035




(1)In addition to cash coupon, all-in yield includes the amortization of
deferred origination and extension fees, loan origination costs, and purchase
discounts.
(2)Loan term represents weighted-average final maturity, assuming all extension
options are exercised by the borrower. Repayments of non-consolidated
securitized debt obligations are tied to timing of the related collateral loan
asset repayments. The term of these obligations represents the rated final
distribution date of the securitizations.
Asset-Specific Financings
The following table details our outstanding asset-specific financings ($ in
thousands):
                                                    Asset-Specific Financings
                                                  Outstanding Principal Balance
                                            December 31, 2021         December 31, 2020
 Asset-specific debt                    $        400,699             $          399,699
 Non-consolidated senior interests(1)                   1,512,675           

801 796

 Total asset-specific financings        $      1,913,374             $        1,201,495




(1)These non-consolidated senior interests provide structural leverage for our
net investments which are reflected in the form of mezzanine loans or other
subordinate interests on our balance sheet and in our results of operations.
Asset-Specific Debt
The following table details our asset-specific debt ($ in thousands):
                                                    December 31, 2021
                                      Principal                        Wtd. Avg.        Wtd. Avg.
Asset-Specific Debt       Count        Balance       Book Value      Yield/Cost(1)        Term(2)
Collateral assets           4        $ 446,276      $  435,727            + 4.04  %      March 2025
Financing provided          4        $ 400,699      $  393,824            + 2.78  %      March 2025





(1)These floating rate loans and related liabilities are indexed to the various
benchmark rates relevant in each arrangement in terms of currency and payment
frequency. Therefore the net exposure to each benchmark rate is in direct
proportion to our net assets indexed to that rate. In addition to cash coupon,
yield/cost includes the amortization of deferred origination fees / financing
costs.
(2)The weighted-average term is determined based on the maximum maturity of the
corresponding loans, assuming all extension options are exercised by the
borrower. Each of our asset-specific debt is term-matched to the corresponding
collateral loans.

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Non-Consolidated Senior Interests
In certain instances, we finance our loans through the non-recourse sale of a
senior loan interest that is not included in our consolidated financial
statements. These non-consolidated senior interests provide structural leverage
for our net investments which are reflected in the form of mezzanine loans or
other subordinate interests on our balance sheet and in our results of
operations.
The following table details the subordinate interests retained on our balance
sheet and the related non-consolidated senior interests ($ in thousands):
                                                                                            December 31, 2021
                                                                      Principal                Book                   Wtd. Avg.                   Wtd. Avg.
Non-Consolidated Senior Interests               Count                  Balance                Value                 Yield/Cost(1)                   Term
Total loan                                        7                       1,933,758                  n/a                     + 3.89  %                 June 2025
Senior participation                              7                       1,512,675                  n/a                     + 2.83  %                 June 2025




(1)The weighted-average spread and all-in yield are expressed as a spread over
the relevant floating benchmark rates, which include USD LIBOR and GBP LIBOR, as
applicable to each investment. As of December 31, 2021, 83% of these loans'
total investment exposure earned a floating rate of interest indexed to USD
LIBOR or SOFR. The other 17% of our investments earned a fixed rate of interest,
which we reflect as a spread over GBP LIBOR, as of December 31, 2021, for
purposes of the weighted-averages. In addition to spread, all-in yield includes
the amortization of deferred origination and extension fees, loan origination
costs, and purchase discounts, as well as the accrual of exit fees.
Corporate Financing
The following table details our outstanding corporate financing ($ in
thousands):
                                                  Corporate Financing
                                             Outstanding Principal Balance
                                       December 31, 2021         December 31, 2020
       Term loans                  $      1,349,271             $        1,062,766
       Senior secured notes                          400,000                       -
       Convertible notes                             622,500                 622,500
       Total corporate financing   $      2,371,771             $       

1,685,266

Term Loans To December 31, 2021the following senior term loan facilities, or term loans, were outstanding (in thousands of dollars):

Term loans Nominal value Interest rate(1) Overall cost(1)(2) Maturity

    B-1 Term Loan      $  929,878               + 2.25  %              + 

2.53% April 23, 2026

    B-2 Term Loan      $  419,393               + 2.75  %              + 3.42  %       April 23, 2026




(1)The B-2 Term Loan borrowing is subject to a LIBOR floor of 0.50%.
(2)Includes issue discount and transaction expenses that are amortized through
interest expense over the life of the Term Loans.
Refer to Note 2 and Note 8 to our consolidated financial statements for
additional discussion of our Term Loans.
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Senior Secured Notes
As of December 31, 2021, the following Senior Secured Notes, were outstanding ($
in thousands):
Senior Secured Notes        Face Value      Interest Rate      All-in Cost(1)           Maturity
Senior Secured Notes       $  400,000              3.75  %             4.04  %        January 15, 2027





(1)Includes issue discount and transaction expenses that are amortized through
interest expense over the life of the Notes.
Refer to Note 2 and Note 9 to our consolidated financial statements for
additional discussion of our Senior Secured Notes.
Convertible Notes
As of December 31, 2021 the following convertible senior notes, or Convertible
Notes, were outstanding ($ in thousands):
Convertible Notes Issuance                  Face Value              Interest Rate             All-in Cost(1)           Conversion Rate(2)              Maturity
May 2017                                   $  402,500                          4.38  %                 4.85  %                      28.0324           May 5, 2022
March 2018                                 $  220,000                          4.75  %                 5.33  %                      27.6052         March 15, 2023




(1)Includes issuance costs that are amortized through interest expense over the
life of the Convertible Notes using the effective interest method.
(2)Represents the number of shares of class A common stock issuable per $1,000
principal amount of Convertible Notes, which is equivalent to a conversion price
of $35.67 and $36.23 per share of class A common stock, respectively, for the
May 2017 and March 2018 convertible notes. The cumulative dividend threshold as
defined in the respective May 2017 and March 2018 convertible notes supplemental
indentures have not been exceeded as of December 31, 2021.
Refer to Note 2 and Note 10 to our consolidated financial statements for
additional discussion of our Convertible Notes.
Floating Rate Portfolio
Generally, our business model is such that rising interest rates will increase
our net income, while declining interest rates will decrease net income. As of
December 31, 2021, 98% of our investments by total investment exposure earned a
floating rate of interest and were financed with liabilities that pay interest
at floating rates, which resulted in an amount of net equity that is positively
correlated to rising interest rates, subject to the impact of interest rate
floors on certain of our floating rate investments. As of December 31, 2021, the
remaining 2% of our investments by total investment exposure earned a fixed rate
of interest, but are financed with liabilities that pay interest at floating
rates, which resulted in a negative correlation to rising interest rates to the
extent of our financing. In certain instances where we have financed fixed rate
assets with floating rate liabilities, we have purchased interest rate caps to
limit our exposure to increases in interest rates on such liabilities.
Our liabilities are generally currency and index-matched to each collateral
asset, resulting in a net exposure to movements in benchmark rates that varies
by currency silo based on the relative proportion of floating rate assets and
liabilities.
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The following table details the net exposure of our investment portfolio to interest rates by currency at December 31, 2021 (amounts in thousands):

                                                            USD                  EUR                  GBP              All Other(7)
Floating rate loans(1)(2)(3)                          $ 17,048,180          

€2,768,909 £1,723,235 $1,137,905
Variable rate debt(1)(2)(3)(4)(5)

                      (13,486,462)          (2,052,351)          (1,288,441)             (888,118)
Net floating rate exposure                            $  3,561,718          

€716,558 £434,794 $249,787
Net floating rate exposure in USD(6)

                  $  3,561,718          $   814,726          $   588,363          $    249,787





(1)Our floating rate investments and related liabilities are indexed to the
various benchmark rates relevant in each case in terms of currency and payment
frequency. Therefore the net exposure to each benchmark rate is in direct
proportion to our net assets indexed to that rate.
(2)Includes investment exposure and related financing of the 2018 Single Asset
Securitization. Refer to Note 4 and Note 17 to our consolidated financial
statements for details of the subordinate position we own in the 2018 Single
Asset Securitization.
(3)As of December 31, 2021, £874.8 million and £848.4 million of floating rate
loans were indexed to SONIA and GBP LIBOR, respectively. As of December 31,
2021, £856.6 million and £431.8 million of floating rate debt was indexed to
SONIA and GBP LIBOR, respectively. As of December 31, 2021, SONIA was 0.19%. and
three-month GBP LIBOR was 0.26%.
(4)Includes borrowings under secured debt, securitizations, asset-specific
financings, and term loans.
(5)As of December 31, 2021, $15.6 billion and $1.5 billion of floating rate debt
was indexed to USD LIBOR and SOFR, respectively. As of December 31, 2021, the
floating benchmark rate for the financing provided on the 2020 FL3 and 2020 FL2
CLOs is one-month SOFR, plus a credit spread adjustment of 0.11%. As of
December 31, 2021, one-month SOFR was 0.05% and one-month USD LIBOR was 0.10%.
(6)Represents the U.S. Dollar equivalent as of December 31, 2021.
(7)Includes Swedish Krona, Australian Dollar, Canadian Dollar, and Swiss Franc
currencies.
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III. Our Results of Operations
Operating Results
The following table sets forth information regarding our consolidated results of
operations for the years ended December 31, 2021, 2020, and 2019 ($ in
thousands, except per share data):
                                              Year Ended                                                   Year Ended
                                             December 31,                   2021 vs 2020                  December 31,                   2020 vs 2019
                                        2021               2020                  $                   2020               2019                  $
Income from loans and other
investments
Interest and related income         $ 854,690          $ 779,648          $ 

75,042 $779,648 $882,679 ($103,031)
Less: Interest and related expenses 340,223

            347,471                (7,248)            347,471            458,503              (111,032)
Income from loans and other              514,467            432,177                 82,290            432,177            424,176                  8,001
investments, net
Other expenses
Management and incentive fees             88,467             77,916                 10,551             77,916             78,435                  (519)
General and administrative expenses       43,168             45,871                (2,703)             45,871             38,854                  7,017
Total other expenses                     131,635            123,787                  7,848            123,787            117,289                  6,498
Decrease (increase) in current            39,864          (167,653)                207,517          (167,653)                  -              (167,653)
expected credit loss reserve
Income before income taxes               422,696            140,737                281,959            140,737            306,887              (166,150)
Income tax provision (benefit)               423                323                    100                323              (506)                    829
Net income                               422,273            140,414                281,859            140,414            307,393              (166,979)
Net income attributable to               (3,080)            (2,744)                  (336)            (2,744)            (1,826)                  (918)
non-controlling interests
Net income attributable to          $ 419,193          $ 137,670          $ 

281,523 $137,670 $305,567 ($167,897)
Blackstone Mortgage Trust, Inc.
Net earnings per share – basic and $2.77 $0.97 $

1.80 $0.97 $2.35 $(1.38)
Diluted dividends declared per share $2.48 $2.48 $

           -          $    2.48          $    2.48          $           -


Income from loans and other investments, net
Income from loans and other investments, net increased $82.3 million during the
year ended December 31, 2021 compared to the year ended December 31, 2020. The
increase was primarily due to (i) an increase in prepayment fee income, (ii) an
increase in the weighted-average principal balance of our loan portfolio by $2.0
billion for the year ended December 31, 2021, as compared to the year ended
December 31, 2020, and (iii) the impact of declining LIBOR and other floating
rate indices, which had a larger impact on interest expense than interest income
as a result of certain of our loans earning interest based on floors that were
above the applicable floating rate index during the period. This was offset by
an increase in the weighted-average principal balance of our outstanding
financing arrangements by $1.9 billion for the year ended December 31, 2021, as
compared to the year ended December 31, 2020.
Income from loans and other investments, net increased $8.0 million during the
year ended December 31, 2020 compared to the year ended December 31, 2019. The
increase was primarily due to (i) $13.7 billion of our loans earning interest
based on floors that were above the applicable floating rate index, as of
December 31, 2020, and (ii) an increase in the weighted-average principal
balance of our loan portfolio by $1.7 billion during the year ended December 31,
2020, as compared to the year ended December 31, 2019. This was offset by (i) a
decrease in weighted-average LIBOR and other floating rate indices in 2020, (ii)
an increase in the weighted-average principal balance of our outstanding
financing arrangements by $1.6 billion during year ended December 31, 2020, as
compared to the year ended December 31, 2019, (iii) a decrease in prepayment fee
income, and (iv) a decline in interest income related to two loans that are
accounted for under the cost-recovery method effective June 30, 2020.
Other expenses
Other expenses include management and incentive fees payable to our Manager and
general and administrative expenses. Other expenses increased by $7.8 million
during the year ended December 31, 2021 compared to the year ended
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December 31, 2020 due to (i) an increase of $6.8 million of incentive fees
payable to our Manager, primarily due to an increase in Distributable Earnings,
and (ii) an increase of $3.8 million of management fees payable to our Manager,
primarily as a result of net proceeds received from the sale of shares of our
class A common stock during 2021 and 2020. This was offset by a decrease of
$3.0 million of non-cash restricted stock amortization related to shares issued
under our long-term incentive plans in 2021 and 2020, primarily due to the
difference in the grant date share price.
Other expenses increased by $6.5 million during the year ended December 31, 2020
compared to the year ended December 31, 2019 due to (i) an increase of $5.1
million of management fees payable to our Manager, primarily as a result of net
proceeds received from the sale of shares of our class A common stock during
2019 and 2020, (ii) $3.9 million of additional non-cash restricted stock
amortization related to shares awarded under our long-term incentive plans, and
(iii) an increase of $3.1 million of other general operating expenses. This was
offset by a decrease of $5.7 million of incentive fees payable to our Manager.
Changes in current expected credit loss reserve
We adopted ASU 2016-13, which implemented the CECL accounting model, on January
1, 2020. During year ended December 31, 2021, we recorded a $39.9 million
decrease in the CECL reserve, as compared to a $167.7 million increase during
the year ended December 31, 2020. This CECL reserve reflects the macroeconomic
impact of the COVID-19 pandemic on commercial real estate markets generally, as
well as certain loans assessed for impairment in our portfolio. See Notes 2 and
3 to our consolidated financial statements for further discussion of our CECL
reserve.
Net income attributable to non-controlling interests
During the years ended December 31, 2021, 2020, and 2019, we recorded $3.1
million, $2.7 million, and $1.8 million, respectively, of net income
attributable to non-controlling interests related to our Multifamily Joint
Venture.
Dividends per share
During the year ended December 31, 2021, we declared aggregate dividends of
$2.48 per share, or $383.9 million. During 2020, we declared aggregate dividends
of $2.48 per share, or $356.2 million. During 2019, we declared aggregate
dividends of $2.48 per share, or $328.1 million.

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The following table sets forth information regarding our consolidated results of
operations for the three months ended December 31, 2021 and September 30, 2021
($ in thousands, except per share data):
                                                             Three Months           Three Months
                                                            Ended December        Ended September
                                                                 31,                    30,                 Change
                                                                 2021                   2021                   $
Income from loans and other investments
Interest and related income                                $     270,749          $     200,114          $   70,635
Less: Interest and related expenses                                  96,809                 82,690              14,119
Income from loans and other investments, net                        173,940                117,424              56,516
Other expenses
Management and incentive fees                                        28,373                 19,342               9,031
General and administrative expenses                                  11,060                 10,841                 219
Total other expenses                                                 39,433                 30,183               9,250
Decrease (increase) in current expected credit loss                 (9,568)                (2,767)             (6,801)
reserve
Income before income taxes                                          124,939                 84,474              40,465
Income tax provision                                                     77                     70                   7
Net income                                                          124,862                 84,404              40,458
Net income attributable to non-controlling interests                  (922)                  (647)               (275)

Net income attributable to Blackstone Mortgage Trust, Inc. $123,940

       $      83,757          $   40,183
Net income per share - basic and diluted                   $        0.76          $        0.56          $     0.20
Dividends declared per share                               $        0.62    

$0.62 $-



Income from loans and other investments, net
Income from loans and other investments, net increased $56.5 million during the
three months ended December 31, 2021 compared to the three months ended
September 30, 2021. The increase was primarily due to (i) an increase in
prepayment fee income and (ii) an increase in the weighted-average principal
balance of our loan portfolio by $2.8 billion for the three months ended
December 31, 2021, as compared to the three months ended September 30, 2021.
This was offset by an increase in the weighted-average principal balance of our
outstanding financing arrangements by $2.7 billion for the three months ended
December 31, 2021, as compared to the three months ended September 30, 2021.
Other expenses
Other expenses include management and incentive fees payable to our Manager and
general and administrative expenses. Other expenses increased by $9.3 million
during the three months ended December 31, 2021 compared to the three months
ended September 30, 2021 primarily due to (i) an increase of $7.6 million of
incentive fees payable to our Manager, primarily due to an increase in
Distributable Earnings, (ii) an increase of $1.5 million of management fees
payable to our Manager, primarily as a result of net proceeds received from the
sale of shares of our class A common stock during the three months ended
December 31, 2021, and (iii) an increase of $847,000 of general operating
expense. This was offset by a decrease of $618,000 of non-cash restricted stock
amortization related to the timing of shares issued under our long-term
incentive plans.
Changes in current expected credit loss reserve
During the three months ended December 31, 2021, we recorded a $9.6 million
increase in the CECL reserve, as compared to a $2.8 million increase during the
three months ended September 30, 2021. Our CECL reserve reflects the
macroeconomic impact of the COVID-19 pandemic on commercial real estate markets
generally, as well as certain loans assessed for impairment in our portfolio.


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Net income attributable to non-controlling interests
During the three months ended December 31, 2021 and September 30, 2021, we
recorded $922,000 and $647,000, respectively, of net income attributable to
non-controlling interests related to our Multifamily Joint Venture.
Dividends per share
During the three months ended December 31, 2021, we declared aggregate dividends
of $0.62 per share, or $104.3 million. During the three months ended
September 30, 2021, we declared aggregate dividends of $0.62 per share, or $97.3
million.
IV. Liquidity and Capital Resources
Capitalization
We have capitalized our business to date primarily through the issuance and sale
of shares of our class A common stock, corporate debt, and asset-level
financing. As of December 31, 2021, our capitalization structure included $4.6
billion of common equity, $2.4 billion of corporate debt, and $17.4 billion of
asset-level financing. Our $2.4 billion of corporate debt includes $1.3 billion
of term loan borrowings, $400.0 million of senior secured notes, and $622.5
million of convertible notes, of which $402.5 million matures in 2022. Our $17.4
billion of asset-level financing includes $12.3 billion of secured debt, $3.2
billion of securitizations, and $1.9 billion of asset-specific financings all of
which are structured to produce term, currency and index matched funding with no
margin call provisions based upon capital markets events.
As of December 31, 2021, we have $1.3 billion of liquidity that can be used to
satisfy our short-term cash requirements and as working capital for our
business.
See Notes 5, 6, 7, 8, 9, and 10 to our consolidated financial statements for
additional details regarding our secured debt, securitized debt obligations,
asset-specific debt, Term Loans, Senior Secured Notes, and Convertible Notes,
respectively.
Debt-to-Equity Ratio and Total Leverage Ratio
The following table presents our debt-to-equity ratio and total leverage ratio:

                           December 31, 2021       December 31, 2020
Debt-to-equity ratio(1)           3.2x                    2.5x
Total leverage ratio(2)           4.2x                    3.6x




(1)Represents (i) total outstanding secured debt, asset-specific debt, term
loans, senior secured notes, and convertible notes, less cash, to (ii) total
equity, in each case at period end.
(2)Represents (i) total outstanding secured debt, securitizations,
asset-specific financings, term loans, senior secured notes, and convertible
notes, less cash, to (ii) total equity, in each case at period end.
Sources of Liquidity
Our primary sources of liquidity include cash and cash equivalents, available
borrowings under our secured debt facilities, and net receivables from servicers
related to loan repayments, which are set forth in the following table ($ in
thousands):

                                                                    December 31,          December 31,
                                                                        2021                  2020
Cash and cash equivalents                                          $    551,154          $    289,970
Available borrowings under secured debt                                    754,900               829,165
Loan principal payments held by servicer, net(1)                            17,528                19,460
                                                                   $  1,323,582          $  1,138,595




(1)Represents loan principal payments held by our third-party servicer as of the
balance sheet date which were remitted to us during the subsequent remittance
cycle, net of the related secured debt balance.
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During the year ended December 31, 2021, we generated cash flow from operating
activities of $382.5 million and received $6.7 billion of loan repayments, $4.7
billion of net proceeds from secured debt borrowings, $638.0 million of net
proceeds from the issuance of shares of class A common stock, $400.0 million
from the issuance of senior secured notes, and $298.5 million of net proceeds
from borrowings under term loans. Furthermore, we are able to generate
incremental liquidity through the replenishment provisions of our 2021 FL4, 2020
FL3, and 2020 FL2 CLOs, which allow us to replace a repaid loan in the CLO by
increasing the principal amount of existing CLO collateral assets to maintain
the aggregate amount of collateral assets in the CLO, and the related financing
outstanding.
We have access to liquidity through public offerings of debt and equity
securities. To facilitate such offerings, in July 2019, we filed a shelf
registration statement with the SEC that is effective for a term of three years
and expires at the end of July 2022. The amount of securities to be issued
pursuant to this shelf registration statement was not specified when it was
filed and there is no specific dollar limit on the amount of securities we may
issue. The securities covered by this registration statement include: (i) class
A common stock; (ii) preferred stock; (iii) debt securities; (iv) depositary
shares representing preferred stock; (v) warrants; (vi) subscription rights;
(vii) purchase contracts; and (viii) units consisting of one or more of such
securities or any combination of these securities. The specifics of any future
offerings, along with the use of proceeds of any securities offered, will be
described in detail in a prospectus supplement, or other offering materials, at
the time of any offering.
We may also access liquidity through a dividend reinvestment plan and direct
stock purchase plan, under which 9,989,790 shares of class A common stock were
available for issuance as of December 31, 2021, and our at-the-market stock
offering program, pursuant to which we may sell, from time to time, up to $353.8
million of additional shares of our class A common stock as of December 31,
2021. Refer to Note 11 to our consolidated financial statements for additional
details.
Liquidity Needs
In addition to our loan origination activity and general operating expenses, our
primary liquidity needs include interest and principal payments under our $12.3
billion of outstanding borrowings under secured debt, our asset-specific debt,
our Term Loans, our Senior Secured Notes, and our Convertible Notes.
As of December 31, 2021, we had unfunded commitments of $4.2 billion related to
118 loans receivable and $2.5 billion of committed or identified financing for
those commitments resulting in net unfunded commitments of $1.7 billion. The
unfunded loan commitments comprise funding for capital expenditures and
construction, leasing costs, and interest and carry costs, and their fundability
will vary depending on the progress of capital projects, leasing, and cash flows
at the properties securing our loans. Therefore, the exact timing and amounts of
such future loan fundings are uncertain and will depend on the current and
future performance of the underlying collateral assets. We expect to fund our
loan commitments over the remaining term of the related loans, which have a
weighted-average future funding period of 3.6 years.









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Contractual obligations and commitments Our contractual obligations and commitments as December 31, 2021 were as follows (in thousands of dollars):

                                                                                              Payment Timing
                                               Total             Less Than             1 to 3               3 to 5             More Than
                                            Obligation           1 Year(1)             Years                Years               5 Years
Unfunded loan commitments(2)              $  4,180,128          $ 181,560   

$1,611,957 $1,395,295 $991,316
Principal repayments under guarantees

             12,299,580             64,564            5,378,851            5,986,465              869,700

debt(3)

Principal repayments under asset-specific         400,699                  -               78,659              322,039                    -

debt(3)

Principal repayments of term loans(4)           1,349,271             13,738               27,477            1,308,056                    -
Principal repayments of senior secured            400,000                  -                    -                    -              400,000

Remarks

Principal repayments of convertible               622,500            402,500              220,000                    -                    -

notes(5)

Interest payments(3)(6)                         1,035,532            305,220              468,574              247,088               14,650
Total(7)                                  $ 20,287,710          $ 967,582          $ 7,785,518          $ 9,258,943          $ 2,275,666




(1)Represents our known, estimated short-term cash requirements related to our
contractual obligations and commitments. Refer to the sources of liquidity
section above for our sources of funds to satisfy our short-term cash
requirements.
(2)The allocation of our unfunded loan commitments is based on the earlier of
the commitment expiration date or the final loan maturity date, however we may
be obligated to fund these commitments earlier than such date.
(3)The allocation of repayments under our secured debt and asset-specific debt
for both principal and interest payments is based on the earlier of (i) the
maturity date of each agreement, or (ii) the maximum maturity date of the
collateral loans, assuming all extension options are exercised by the borrower.
(4)The Term Loans are partially amortizing, with an amount equal to 1.0% per
annum of the initial principal balance due in quarterly installments. Refer to
Note 8 for further details on our term loans.
(5)Reflects the outstanding principal balance of convertible notes, excluding
any potential conversion premium. Refer to Note 10 to our consolidated financial
statements for further details on our convertible notes.
(6)Represents interest payments on our secured debt, asset-specific debt, Term
Loans, and convertible notes. Future interest payment obligations are estimated
assuming the interest rates in effect as of December 31, 2021 will remain
constant into the future. This is only an estimate as actual amounts borrowed
and interest rates will vary over time.
(7)Total does not include $2.9 billion of consolidated securitized debt
obligations, $1.5 billion of non-consolidated senior interests, and $300.1
million of non-consolidated securitized debt obligations, as the satisfaction of
these liabilities will not require cash outlays from us.
We are also required to settle our foreign exchange derivatives with our
derivative counterparties upon maturity which, depending on exchange rate
movements, may result in cash received from or due to the respective
counterparty. The table above does not include these amounts as they are not
fixed and determinable. Refer to Note 11 to our consolidated financial
statements for details regarding our derivative contracts.
We are required to pay our Manager a base management fee, an incentive fee, and
reimbursements for certain expenses pursuant to our Management Agreement. The
table above does not include the amounts payable to our Manager under our
Management Agreement as they are not fixed and determinable. Refer to Note 13 to
our consolidated financial statements for additional terms and details of the
fees payable under our Management Agreement.
As a REIT, we generally must distribute substantially all of our net taxable
income to stockholders in the form of dividends to comply with the REIT
provisions of the Internal Revenue Code. Our taxable income does not necessarily
equal our net income as calculated in accordance with GAAP, or our Distributable
Earnings as described above.
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Cash Flows
The following table provides a breakdown of the net change in our cash and cash
equivalents ($ in thousands):
                                                                     For 

the years have ended the 31st of December,

                                                              2021                   2020                 2019
Cash flows provided by operating activities            $    382,483              $  336,607          $    304,037
Cash flows used in investing activities                        (5,627,461)            (88,251)           (1,871,148)
Cash flows provided by (used in) financing activities            5,508,224           (110,769)             1,612,552
Net increase in cash and cash equivalents              $    263,246         

$137,587 $45,441



We experienced a net increase in cash and cash equivalents of $263.2 million for
the year ended December 31, 2021, compared to a net increase of $137.6 million
for the year ended December 31, 2020. During 2021, we received (i) $6.7 billion
from loan principal collections and sales proceeds, (ii) $4.7 billion of net
proceeds from secured debt borrowings, (iii) $638.0 million of net proceeds from
the issuance of shares of class A common stock, (iv) $395.0 million of net
proceeds from the issuance of senior secured notes, and (v) $298.5 million of
net proceeds from secured term loan borrowings. We used the proceeds from these
activities to fund $12.6 billion of new loans.
We experienced a net increase in cash and cash equivalents of $137.6 million for
the year ended December 31, 2020, compared to a net increase of $45.4 million
for the year ended December 31, 2019. During 2020, we received (i) $2.1 billion
of proceeds from the issuance of collateralized loan obligations, (ii) $1.9
billion from loan principal collections and sales proceeds, (iii) $315.4 million
of net proceeds from secured term loan borrowings, and (iv) $278.3 million in
net proceeds from the issuance of shares of class A common stock. We used the
proceeds from these activities to (i) repay a net $2.1 billion under our secured
debt agreements and (ii) fund $1.9 billion of new loans.
Refer to Note 3 to our consolidated financial statements for further discussion
of our loan activity. Refer to Notes 5, 8, and 12 to our consolidated financial
statements for additional discussion of our secured debt, term loans, and
equity.
V. Other Items
Income Taxes
We have elected to be taxed as a REIT under the Internal Revenue Code for U.S.
federal income tax purposes. We generally must distribute annually at least 90%
of our net taxable income, subject to certain adjustments and excluding any net
capital gain, in order for U.S. federal income tax not to apply to our earnings
that we distribute. To the extent that we satisfy this distribution requirement,
but distribute less than 100% of our net taxable income, we will be subject to
U.S. federal income tax on our undistributed taxable income. In addition, we
will be subject to a 4% nondeductible excise tax if the actual amount that we
pay out to our stockholders in a calendar year is less than a minimum amount
specified under U.S. federal tax laws.
Our qualification as a REIT also depends on our ability to meet various other
requirements imposed by the Internal Revenue Code, which relate to
organizational structure, diversity of stock ownership, and certain restrictions
with regard to the nature of our assets and the sources of our income. Even if
we qualify as a REIT, we may be subject to certain U.S. federal income and
excise taxes and state and local taxes on our income and assets. If we fail to
maintain our qualification as a REIT for any taxable year, we may be subject to
material penalties as well as federal, state and local income tax on our taxable
income at regular corporate rates and we would not be able to qualify as a REIT
for the subsequent four full taxable years. As of December 31, 2021 and 2020, we
were in compliance with all REIT requirements.
Furthermore, our taxable REIT subsidiaries, or TRSs, are subject to federal,
state, and local income tax on their net taxable income. Refer to Note 14 to our
consolidated financial statements for additional discussion of our income taxes.
Critical Accounting Policies
Our discussion and analysis of our financial condition and results of operations
is based upon our consolidated financial statements, which have been prepared in
accordance with GAAP. The preparation of these financial statements requires our
Manager to make estimates and assumptions that affect the reported amounts of
assets, liabilities, revenue and expenses, and related disclosure of contingent
assets and liabilities. Actual results could differ from these estimates. During
2021, our Manager reviewed and evaluated our critical accounting policies and
believes them to be appropriate. The following is a summary of our significant
accounting policies that we believe are the most affected by our Manager's
judgments, estimates, and assumptions:
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Current Expected Credit Losses
The current expected credit loss, or CECL, reserve required under Accounting
Standard Update, or ASU, 2016-13 "Financial Instruments - Credit Losses -
Measurement of Credit Losses on Financial Instruments (Topic 326)," or ASU
2016-13, reflects our current estimate of potential credit losses related to our
loans and debt securities included in our consolidated balance sheets. We
estimate our CECL reserve primarily using the Weighted Average Remaining
Maturity, or WARM method, which has been identified as an acceptable loss-rate
method for estimating CECL reserves in the Financial Accounting Standards Board
Staff Q&A Topic 326, No. 1. Estimating the CECL reserve requires judgment,
including the following assumptions:

•Historical loan loss reference data: To estimate the historic loan losses
relevant to our portfolio, we have augmented our historical loan performance
with market loan loss data licensed from Trepp LLC. This database includes
commercial mortgage-backed securities, or CMBS, issued since January 1, 1999
through November 30, 2021. Within this database, we focused our historical loss
reference calculations on the most relevant subset of available CMBS data, which
we determined based on loan metrics that are most comparable to our loan
portfolio including asset type, geography, and origination loan-to-value, or
LTV. We believe this CMBS data, which includes month-over-month loan and
property performance, is the most relevant, available, and comparable dataset to
our portfolio.

•Expected timing and amount of future loan fundings and repayments: Expected
credit losses are estimated over the contractual term of each loan, adjusted for
expected prepayments. As part of our quarterly review of our loan portfolio, we
assess the expected repayment date of each loan, which is used to determine the
contractual term for purposes of computing our CECL reserve. Additionally, the
expected credit losses over the contractual period of our loans are subject to
the obligation to extend credit through our unfunded loan commitments. The CECL
reserve for unfunded loan commitments is adjusted quarterly, as we consider the
expected timing of future funding obligations over the estimated life of the
loan. The considerations in estimating our CECL reserve for unfunded loan
commitments are similar to those used for the related outstanding loan
receivables.

•Current credit quality of our portfolio: Our risk rating is our primary credit
quality indicator in assessing our current expected credit loss reserve. Our
Manager performs a quarterly risk review of our portfolio of loans, and assigns
each loan a risk rating based on a variety of factors, including, without
limitation, LTV, debt yield, property type, geographic and local market
dynamics, physical condition, cash flow volatility, leasing and tenant profile,
loan structure and exit plan, and project sponsorship.

•Expectations of performance and market conditions: Our CECL reserve is adjusted
to reflect our estimation of the current and future economic conditions that
impact the performance of the commercial real estate assets securing our loans.
These estimations include unemployment rates, interest rates, and other
macroeconomic factors impacting the likelihood and magnitude of potential credit
losses for our loans during their anticipated term. In addition to the CMBS data
we have licensed from Trepp LLC, we have also licensed certain macroeconomic
financial forecasts to inform our view of the potential future impact that
broader economic conditions may have on our loan portfolio's performance. These
estimations require significant judgments about future events that, while based
on the information available to us as of the balance sheet date, are ultimately
indeterminate and the actual economic condition impacting our portfolio could
vary significantly from the estimates we made as of December 31, 2021.

•Impairment: impairment is indicated when it is deemed probable that we will not
be able to collect all amounts due to us pursuant to the contractual terms of
the loan. Determining that a loan is impaired requires significant judgment from
management and is based on several factors including (i) the underlying
collateral performance, (ii) discussions with the borrower, (iii) borrower
events of default, and (iv) other facts that impact the borrower's ability to
pay the contractual amounts due under the terms of the loan. If a loan is
determined to be impaired, we record the impairment as a component of our CECL
reserve by applying the practical expedient for collateral dependent loans. The
CECL reserve is assessed on an individual basis for these loans by comparing the
estimated fair value of the underlying collateral, less costs to sell, to the
book value of the respective loan. These valuations require significant
judgments, which include assumptions regarding capitalization rates, discount
rates, leasing, creditworthiness of major tenants, occupancy rates, availability
and cost of financing, exit plan, loan sponsorship, actions of other lenders,
and other factors deemed relevant by our Manager. Actual losses, if any, could
ultimately differ materially from these estimates. We only expect to realize the
impairment losses if and when such amounts are deemed nonrecoverable upon a
realization event. This is generally at the time a loan is repaid, or in the
case of foreclosure, when the underlying asset is sold, but non-recoverability
may also be concluded if, in our determination, it is nearly certain that all
amounts due will not be collected.

These assumptions vary from quarter to quarter as our loan portfolio changes and
market and economic conditions evolve. The sensitivity of each assumption and
its impact on the CECL reserve may change over time and from period to period.
During the year ended December 31, 2021, we recorded an aggregate $39.9 million
decrease in the CECL reserve related to loans receivable, debt securities, and
unfunded loan commitments, and $14.4 million of charge-offs, bringing our total
reserve to $131.0 million as of December 31, 2021. The decrease in the CECL
reserve during the year ended December 31,
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2021 reflects the ongoing market recovery from COVID-19 and the improvement in
the performance of the collateral assets underlying our portfolio. This CECL
reserve reflects the macroeconomic impact of the COVID-19 pandemic on commercial
real estate markets generally, as well as certain loans assessed for impairment
in our portfolio. See Notes 2 and 3 to our consolidated financial statements for
further discussion of our CECL reserve.

Revenue Recognition
Interest income from our loans receivable portfolio and debt securities is
recognized over the life of each investment using the effective interest method
and is recorded on the accrual basis. Recognition of fees, premiums, and
discounts associated with these investments is deferred and recorded over the
term of the loan or debt security as an adjustment to yield. Income accrual is
generally suspended for loans at the earlier of the date at which payments
become 90 days past due or when, in the opinion of our Manager, recovery of
income and principal becomes doubtful. Interest received is then recorded as a
reduction in the outstanding principal balance until accrual is resumed when the
loan becomes contractually current and performance is demonstrated to be
resumed. In addition, for loans we originate, the related origination expenses
are deferred and recognized as a component of interest income, however expenses
related to loans we acquire are included in general and administrative expenses
as incurred.
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VI. Loan Portfolio Details
The following table provides details of our loan portfolio, on a loan-by-loan
basis, as of December 31, 2021 ($ in millions):

                                        Origination            Total              Principal           Net Book           Cash                    All-in                     Maximum                                                                       Loan Per                   Origination             Risk
                Loan Type(1)              Date(2)            Loan(3)(4)           Balance(4)            Value          Coupon(5)                Yield(5)                  Maturity(6)               Location                 Property Type            SQFT / Unit / Key                LTV(2)               Rating
      1        Senior Loan                   8/14/2019     $     1,192          $     1,160          $  1,156           +2.54      %            +2.96      %                 12/23/2024     Dublin - IE                    Office                              $422 / sqft                     74  %           2
      2        Senior Loan                   3/22/2018                822                  822               821        +3.25      %            +3.42      %                  3/15/2023     Diversified - Spain            Mixed-Use                                 n / a                     71  %           4
      3       Senior Loan(4)                 12/9/2021                770                  667               382        +2.65      %            +2.82      %                  12/9/2026     New York                       Mixed-Use                           $220 / sqft                     50  %           2
      4        Senior Loan                   3/30/2021                551                  551               546        +3.20      %            +3.41      %                  5/15/2026     Diversified - SE               Industrial                          $101 / sqft                     76  %           2
      5       Senior Loan(4)                  8/7/2019                746                  497                99        +3.12      %            +3.60      %                   9/9/2025     Los Angeles                    Office                              $338 / sqft                     59  %           3
      6       Senior Loan(4)                12/17/2021                448                  440               283        +3.95      %            +4.33      %                   1/9/2026     Diversified - US               Other                            $13,716 / unit                     61  %           3
      7        Senior Loan                   8/22/2018                363                  363               362        +3.15      %            +3.28      %                   8/9/2023     Maui                           Hospitality                     $471,391 / unit                     61  %           2
      8        Senior Loan                    4/9/2018              1,487                  358               346        +6.13      %            +6.43      %                   6/9/2025     New York                       Office                              $525 / sqft                     48  %           2
      9        Senior Loan                   9/23/2019                398                  346               343        +3.00      %            +3.22      %                 11/15/2024     Diversified - Spain            Hospitality                     $188,896 / unit                     62  %           4
     10        Senior Loan                   4/11/2018                355                  345               344        +2.85      %            +3.10      %                   5/1/2023     New York                       Office                              $437 / sqft                     71  %           3
     11        Senior Loan                  10/25/2021                327                  327               323        +4.30      %            +4.62      %                 10/25/2024     Diversified - AU               Hospitality                     $161,082 / unit                     56  %           3
     12       Senior Loan(4)                  8/6/2015                325                  325                59              5.74 %                  5.85 %                 10/29/2022     Diversified - EUR              Other                                     n / a                     71  %           3
     13        Senior Loan                   1/11/2019                325                  325               323        +4.35      %            +4.70      %                  1/11/2026     Diversified - UK               Other                               $321 / sqft                     74  %           4
     14        Senior Loan                   2/27/2020                303                  299               298        +2.70      %            +3.04      %                   3/9/2025     New York                       Mixed-Use                           $938 / sqft                     59  %           2
     15        Senior Loan                  11/30/2018                286                  286               285            n/m(7) %                n/m(7) %                   8/9/2025     New York                       Hospitality                     $306,870 / unit                     73  %           5
     16       Senior Loan(4)                11/22/2019                470                  279                55        +3.70      %            +4.17      %                  12/9/2025     Los Angeles                    Office                              $279 / sqft                     69  %           3
     17        Senior Loan                  10/23/2018                290                  275               275        +2.80      %            +3.04      %                  11/9/2024     Atlanta                        Office                              $256 / sqft                     64  %           2
     18        Senior Loan                  12/11/2018                310                  273               272        +2.55      %            +2.77      %                  12/9/2023     Chicago                        Office                              $229 / sqft                     78  %           3
     19        Senior Loan                   7/23/2021                500                  271               266        +4.00      %            +4.42      %                   8/9/2027     New York                       Multi                           $364,197 / unit                     58  %           3
     20        Senior Loan                   7/15/2021                327                  270               266        +4.25      %            +4.73      %                  7/15/2026     Diversified - EUR              Hospitality                     $206,234 / unit                     53  %           3
     21        Senior Loan                   9/30/2021                280                  265               263        +2.50      %            +2.77      %                  9/30/2026     Dallas                         Multi                           $139,884 / unit                     74  %           3
     22        Senior Loan                   4/26/2021                264                  264               262        +2.45      %            +2.63      %                   5/9/2026     Diversified - US               Multi                           $156,393 / unit                     75  %           3
     23        Senior Loan                   9/29/2021                312                  255               253        +2.70      %            +2.92      %                  10/9/2026     Washington DC                  Office                              $332 / sqft                     66  %           3
     24        Senior Loan                   9/14/2021                259                  252               250        +2.50      %            +2.76      %                  9/14/2026     Dallas                         Multi                           $203,644 / unit                     72  %           3
     25        Senior Loan                  11/30/2018                264                  251               250        +2.80      %            +3.03      %                  12/9/2024     San Francisco                  Hospitality                     $368,495 / unit                     73  %           4
     26        Senior Loan                   7/16/2021                247                  230               227        +3.50      %            +3.81      %                  2/15/2026     London - UK                    Multi                           $260,473 / unit                     72  %           3
     27       Senior Loan(4)                 3/23/2020                307                  223                44        +3.75      %            +4.47      %                   1/9/2025     Nashville                      Mixed-Use                           $262 / sqft                     78  %           3
     28        Senior Loan                   7/20/2017                250                  223               222        +3.70      %            +4.16      %                   8/9/2023     San Francisco                  Office                              $369 / sqft                     58  %           2
     29        Senior Loan                   9/16/2021                247                  212               210        +3.80      %            +4.49      %                   4/9/2024     San Francisco                  Office                              $267 / sqft                     53  %           3
     30        Senior Loan                   4/23/2021                219                  209               209        +3.65      %            +3.77      %                   5/8/2024     Washington DC                  Office                              $234 / sqft                     57  %           3


                                                                      continued…



                                       78
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                                       Origination            Total             Principal           Net Book           Cash                    All-in                     Maximum                                                                       Loan Per                   Origination             Risk
                Loan Type(1)             Date(2)           Loan(3)(4)          Balance(4)            Value           Coupon(5)                Yield(5)                  Maturity(6)               Location                 Property Type            SQFT / Unit / Key                LTV(2)               Rating
     31        Senior Loan                  6/27/2019     $      218          $      204          $     203           +2.80      %            +3.16      %                  8/15/2026     Berlin - DEU                   Office                              $214 / sqft                     62  %           3
     32        Senior Loan                  8/31/2017               203                 202                202        +2.50      %            +2.85      %                   9/9/2023     Orange County                  Office                              $235 / sqft                     64  %           3
     33        Senior Loan                  11/5/2019               210                 200                199        +3.85      %            +4.45      %                  2/21/2025     Diversified - IT               Office                              $394 / sqft                     66  %           3
     34        Senior Loan                  9/25/2019               199                 199                198        +4.35      %            +4.93      %                  9/26/2023     London - UK                    Office                              $908 / sqft                     72  %           3
     35        Senior Loan                 11/23/2018               198                 198                197        +2.62      %            +2.87      %                  2/15/2024     Diversified - UK               Office                              $589 / sqft                     50  %           3
     36        Senior Loan                  9/30/2021               195                 195                193        +3.75      %            +4.10      %                  10/9/2026     Boca Raton                     Multi                           $532,787 / unit                     77  %           3
     37        Senior Loan                 12/22/2016               205                 192                192        +2.90      %            +3.13      %                  12/9/2022     New York                       Office                              $270 / sqft                     64  %           3
     38        Senior Loan                   6/4/2018               188                 188                188        +3.50      %            +3.76      %                   6/9/2024     New York                       Hospitality                     $309,308 / unit                     52  %           4
     39        Senior Loan                 12/21/2017               198                 182                182        +2.65      %            +2.87      %                   1/9/2023     Atlanta                        Office                              $136 / sqft                     51  %           1
     40        Senior Loan                  6/28/2019               222                 182                180        +3.70      %            +4.35      %                  6/27/2024     London - UK                    Office                              $596 / sqft                     71  %           3
     41        Senior Loan                  10/1/2019               248                 175                173        +3.75      %            +4.25      %                  10/9/2025     Atlanta                        Office                              $369 / sqft                     68  %           1
     42        Senior Loan                  9/26/2019               175                 175                175        +3.10      %            +3.54      %                   1/9/2023     New York                       Office                              $256 / sqft                     65  %           3
     43        Senior Loan                 12/17/2021               178                 175                173        +3.95      %            +4.33      %                   1/9/2026     Diversified - US               Other                             $5,680 / unit                     48  %           3
     44        Senior Loan                  9/30/2021               256                 172                170        +3.00      %            +3.35      %                  10/9/2028     Chicago                        Office                              $190 / sqft                     74  %           3
     45        Senior Loan                   9/5/2019               198                 169                169        +2.75      %            +3.26      %                   9/9/2024     New York                       Office                            $1,055 / sqft                     62  %           3
     46        Senior Loan                   9/4/2018               173                 159                159        +3.00      %            +3.39      %                   9/9/2023     Las Vegas                      Hospitality                     $192,456 / unit                     70  %           3
     47        Senior Loan                  10/7/2021               165                 158                157        +3.25      %            +3.58      %                  10/9/2025     Los Angeles                    Office                              $322 / unit                     68  %           3
     48        Senior Loan                  9/30/2021               209                 157                155        +4.00      %            +4.52      %                  9/30/2026     Diversified - Spain            Hospitality                     $140,968 / unit                     60  %           3
     49        Senior Loan                  5/27/2021               205                 154                153        +2.70      %            +2.99      %                   6/9/2026     Atlanta                        Office                              $130 / sqft                     66  %           3
     50        Senior Loan                  8/24/2021               179                 153                152        +3.10      %            +3.41      %                   9/9/2026     San Jose                       Office                              $365 / sqft                     65  %           3
     51        Senior Loan                 11/18/2021               153                 153                152        +3.25      %            +3.51      %                 10/21/2026     London                         Industrial                          $209 / sqft                     65  %           2
     52        Senior Loan                 12/20/2019               152                 152                151        +3.10      %            +3.32      %                 12/18/2026     London - UK                    Office                              $756 / sqft                     75  %           2
     53        Senior Loan                 12/21/2021               145                 145                143        +2.75      %            +3.11      %                 12/21/2026     London                         Industrial                          $504 / sqft                     67  %           3
     54        Senior Loan                  7/23/2021               244                 141                138        +5.00      %            +5.33      %                   8/9/2027     New York                       Mixed-Use                           $455 / sqft                     53  %           3
     55        Senior Loan                  1/17/2020               203                 139                138        +2.75      %            +3.07      %                   2/9/2025     New York                       Mixed-Use                           $114 / sqft                     43  %           3
     56        Senior Loan                 11/14/2017               133                 133                133        +2.75      %            +2.86      %                   6/9/2023     Los Angeles                    Hospitality                     $532,000 / unit                     56  %           2
     57        Senior Loan                  3/10/2020               140                 130                130        +2.50      %            +2.50      %                 10/11/2024     New York                       Mixed-Use                           $793 / sqft                     53  %           2
     58        Senior Loan                  9/14/2021               132                 127                127        +2.70      %            +2.95      %                  10/9/2026     San Bernardino                 Multi                           $256,774 / unit                     75  %           3
     59        Senior Loan                   4/3/2018               126                 125                125        +2.75      %            +2.92      %                   4/9/2024     Dallas                         Mixed-Use                           $761 / sqft                     64  %           3
     60        Senior Loan                 11/17/2021               135                 125                124        +2.80      %            +3.15      %                  12/9/2026     Denver                         Multi                           $323,316 / unit                     71  %           3



                                                                      continued…






                                       79
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                                       Origination            Total             Principal           Net Book           Cash                    All-in                     Maximum                                                                     Loan Per                   Origination             Risk
                Loan Type(1)             Date(2)           Loan(3)(4)          Balance(4)            Value           Coupon(5)                Yield(5)                  Maturity(6)              Location                Property Type            SQFT / Unit / Key                LTV(2)               Rating
     61        Senior Loan                 11/27/2019     $      146          $      125          $     124           +2.75      %            +3.13      %                  12/9/2024     Minneapolis                  Office                              $125 / sqft                     64  %           3
     62        Senior Loan                  4/30/2018               173                 123                122        +3.25      %            +3.51      %                  4/30/2023     London - UK                  Office                              $553 / sqft                     60  %           3
     63        Senior Loan                  8/31/2021               119                 119                118        +3.05      %            +3.32      %                   9/9/2026     Diversified - US             Retail                              $316 / sqft                     65  %           3
     64        Senior Loan                   6/1/2021               120                 117                117        +2.85      %            +3.05      %                   6/9/2026     Miami                        Multi                           $291,189 / unit                     61  %           3
     65        Senior Loan                  6/28/2019               125                 117                117        +2.75      %            +2.91      %                   2/1/2024     Los Angeles                  Office                              $591 / sqft                     48  %           3
     66        Senior Loan                   4/6/2021               123                 117                116        +3.20      %            +3.52      %                   4/9/2026     Los Angeles                  Office                              $493 / sqft                     65  %           3
     67        Senior Loan                  7/15/2019               145                 117                116        +2.90      %            +3.25      %                   8/9/2024     Houston                      Office                              $211 / sqft                     58  %           3
     68        Senior Loan                  9/14/2018               114                 114                114        +3.50      %            +3.84      %                  9/14/2023     Canberra - AU                Mixed-Use                           $335 / sqft                     68  %           3
     69        Senior Loan                  3/29/2021               138                 114                113        +3.90      %            +4.55      %                  3/29/2026     Diversified - UK             Multi                            $49,962 / unit                     61  %           3
     70        Senior Loan                  8/27/2021               122                 114                113        +3.00      %            +3.29      %                   9/9/2026     San Diego                    Retail                              $430 / sqft                     58  %           3
     71        Senior Loan                 10/21/2021               114                 114                114        +2.90      %            +3.15      %                  11/9/2025     Fort Lauderdale              Multi                           $334,311 / unit                     64  %           2
     72        Senior Loan                 12/21/2018               123                 114                114        +2.60      %            +2.99      %                   1/9/2024     Chicago                      Office                              $223 / sqft                     72  %           3
     73        Senior Loan                  5/13/2021               199                 111                109        +3.55      %            +3.94      %                   6/9/2026     Boston                       Office                              $561 / sqft                     64  %           3
     74        Senior Loan                 12/21/2021               120                 110                109        +2.70      %            +3.00      %                   1/9/2027     Washington DC                Office                              $384 / sqft                     68  %           3
     75        Senior Loan                  5/20/2021               148                 106                105        +3.60      %            +4.00      %                   6/9/2026     San Jose                     Office                              $273 / sqft                     65  %           3
     76        Senior Loan                  3/13/2018               123                 104                104        +3.00      %            +3.27      %                   4/9/2027     Honolulu                     Hospitality                     $160,580 / unit                     50  %           3
     77        Senior Loan                  2/20/2019               183                 101                 99        +3.95      %            +4.43      %                  2/19/2024     London - UK                  Office                              $493 / sqft                     61  %           3
     78        Senior Loan                 12/29/2021               110                 100                 99        +2.85      %            +3.06      %                   1/9/2027     Phoenix                      Multi                               $260 / sqft                     64  %           3
     79        Senior Loan                   7/1/2021               104                  99                 98        +3.10      %            +3.35      %                   7/9/2026     Diversified - US             Retail                              $281 / sqft                     61  %           3
     80        Senior Loan                  3/25/2020               121                  99                 98        +2.40      %            +2.78      %                  3/31/2025     Diversified - NL             Multi                           $120,775 / unit                     65  %           2
     81        Senior Loan                  6/18/2021                99                  99                 98        +2.60      %            +2.83      %                   7/9/2026     New York                     Industrial                           $52 / sqft                     55  %           2
     82        Senior Loan                 11/16/2018               118                  98                 98        +4.10      %            +4.10      %                  12/9/2023     Fort Lauderdale              Mixed-Use                           $276 / sqft                     59  %           2
     83        Senior Loan                  10/1/2021               101                  98                 97        +2.75      %            +3.02      %                  10/1/2026     Phoenix                      Multi                           $226,852 / unit                     77  %           3
     84        Senior Loan                 12/10/2018               120                  98                 97        +2.95      %            +3.95      %                  12/3/2024     London - UK                  Office                              $466 / sqft                     72  %           3
     85        Senior Loan                 10/16/2018               106                  97                 97        +3.25      %            +3.52      %                  11/9/2023     San Francisco                Hospitality                     $211,959 / unit                     72  %           4
     86        Senior Loan                  3/28/2019                98                  97                 97        +3.25      %            +3.40      %                   1/9/2024     New York                     Hospitality                     $249,463 / unit                     63  %           4
     87        Senior Loan                 10/28/2021                96                  96                 95        +2.90      %            +3.25      %                  11/9/2026     Philadelphia                 Multi                           $353,704 / unit                     79  %           3
     88        Senior Loan                 10/27/2021                93                  93                 92        +2.50      %            +2.69      %                  11/9/2026     Orlando                      Multi                           $155,612 / unit                     75  %           3
     89        Senior Loan                  6/14/2021               100                  92                 92        +3.70      %            +4.04      %                   7/9/2024     Miami                        Office                              $195 / sqft                     65  %           3
     90        Senior Loan                   2/3/2021               111                  92                 92        +3.20      %            +3.57      %                   2/9/2026     Austin                       Office                              $382 / sqft                     56  %           1



                                                                      continued…






                                       80
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                                        Origination            Total              Principal           Net Book           Cash                    All-in                     Maximum                                                                    Loan Per                   Origination             Risk
                 Loan Type(1)             Date(2)            Loan(3)(4)           Balance(4)            Value          Coupon(5)                Yield(5)                  Maturity(6)             Location                Property Type            SQFT / Unit / Key                LTV(2)               Rating
      91        Senior Loan                  3/31/2017     $        97          $        91          $     91           +4.30      %            +4.54      %                   4/9/2023     New York                    Office                              $444 / sqft                     64  %           3
      92        Senior Loan                 12/22/2021                 91                   91                90        +3.18      %            +3.44      %                   1/9/2027     Las Vegas                   Multi                           $205,682 / unit                     65  %           3
      93        Senior Loan                 12/15/2021                 91                   87                87        +2.85      %            +3.10      %                   1/9/2027     Charlotte                   Multi                           $249,000 / unit                     76  %           3
      94        Senior Loan                  6/25/2021                 85                   85                85        +2.75      %            +3.10      %                   7/1/2026     St. Louis                   Multi                            $80,339 / unit                     70  %           3
      95        Senior Loan                 12/10/2021                135                   85                84        +3.00      %            +3.37      %                   1/9/2027     Miami                       Office                              $286 / sqft                     49  %           3
      96        Senior Loan                  6/29/2016                 83                   82                82        +2.80      %            +3.04      %                   7/8/2022     Miami                       Office                              $318 / sqft                     64  %           2
      97        Senior Loan                  7/30/2021                 87                   80                80        +2.50      %            +2.84      %                   8/9/2026     Los Angeles                 Multi                           $159,040 / unit                     70  %           3
      98        Senior Loan                  7/29/2021                 82                   78                77        +2.65      %            +3.02      %                   6/9/2026     Charlotte                   Multi                           $212,295 / unit                     78  %           3
      99        Senior Loan                 11/23/2021                 92                   77                76        +2.75      %            +3.08      %                  12/9/2026     Los Angeles                 Industrial                          $219 / sqft                     66  %           3
     100        Senior Loan                  6/27/2019                 84                   76                76        +2.50      %            +2.77      %                   7/9/2024     West Palm Beach             Office                              $262 / sqft                     70  %           2
     101        Senior Loan                  6/18/2019                 75                   75                75        +2.75      %            +3.15      %                   7/9/2024     Napa Valley                 Hospitality                     $785,340 / unit                     74  %           2
     102        Senior Loan                   4/1/2021                102                   75                74        +3.30      %            +3.71      %                   4/9/2026     San Jose                    Office                              $497 / sqft                     67  %           3
     103        Senior Loan                 12/30/2021                228                   73                71        +4.35      %            +5.05      %                   1/9/2028     Santa Monica                Multi                           $132,635 / unit                     50  %           3
     104        Senior Loan                  3/21/2018                 74                   73                73        +3.10      %            +3.33      %                  3/21/2024     Jacksonville                Office                               $95 / sqft                     72  %           1
     105        Senior Loan                  7/23/2021                 73                   71                71        +3.00      %            +3.02      %                   7/9/2024     New York                    Multi                               $402 / sqft                     62  %           3
     106        Senior Loan                 10/28/2021                 69                   69                69        +2.55      %            +2.74      %                  11/9/2026     Tacoma                      Multi                           $209,864 / unit                     70  %           3
     107        Senior Loan                  9/22/2021                 67                   67                67        +3.00      %            +3.16      %                   4/1/2024     Jacksonville                Multi                           $181,081 / unit                     62  %           2
     108        Senior Loan                  1/30/2020                104                   67                66        +2.85      %            +3.22      %                   2/9/2026     Honolulu                    Hospitality                     $214,341 / unit                     63  %           3
     109        Senior Loan                 12/21/2021                 74                   67                66        +2.70      %            +3.06      %                   1/9/2027     Tampa                       Multi                           $195,588 / unit                     77  %           3
     110        Senior Loan                  8/22/2019                 74                   65                65        +2.55      %            +2.93      %                   9/9/2024     Los Angeles                 Office                              $389 / sqft                     63  %           3
     111        Senior Loan                 12/10/2021                 68                   65                64        +2.85      %            +3.19      %                   1/9/2027     Austin                      Multi                           $260,000 / unit                     73  %           3
     112        Senior Loan                  6/29/2017                 63                   63                63        +3.40      %            +4.35      %                   7/9/2023     New York                    Multi                           $184,768 / unit                     69  %           4
     113        Senior Loan                  10/5/2018                 63                   63                62        +5.50      %            +5.92      %                 12/20/2022     Sydney - AU                 Office                              $663 / sqft                     78  %           3
     114        Senior Loan                 12/23/2021                 62                   62                61        +2.18      %            +2.99      %                   9/1/2023     New York                    Office                              $145 / unit                     71  %           3
     115        Senior Loan                  3/31/2021                 62                   62                62        +3.73      %            +3.86      %                   4/1/2024     Boston                      Multi                           $316,327 / unit                     75  %           2
     116        Senior Loan                  7/30/2021                 62                   62                62        +2.75      %            +2.94      %                   8/9/2026     Salt Lake City              Multi                           $224,185 / unit                     73  %           3
     117        Senior Loan                  9/29/2021                 62                   58                58        +2.85      %            +3.02      %                  10/1/2025     Houston                     Multi                            $52,968 / unit                     61  %           3
     118        Senior Loan                  7/16/2021                 58                   58                58        +2.75      %            +3.03      %                   8/1/2025     Orlando                     Multi                           $195,750 / unit                     74  %           2
     119        Senior Loan                 12/17/2021                 58                   58                57        +2.65      %            +2.85      %                   1/9/2027     Phoenix                     Multi                           $209,601 / unit                     69  %           3
     120        Senior Loan                  8/14/2019                 70                   58                58        +2.45      %            +2.90      %                   9/9/2024     Los Angeles                 Office                              $661 / sqft                     57  %           3


                                                                      continued…






                                       81
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                                          Origination            Total              Principal           Net Book           Cash                    All-in                     Maximum                                                                         Loan Per                   Origination             Risk
                 Loan Type(1)               Date(2)            Loan(3)(4)           Balance(4)            Value          Coupon(5)                Yield(5)                  Maturity(6)                Location                  Property Type            SQFT / Unit / Key                LTV(2)               Rating
     121        Senior Loan                   11/11/2021     $        61          $        58          $     57           +3.95      %            +4.74      %                    8/6/2026     London                          Hospitality                     $205,396 / unit                     40  %           3
     122        Senior Loan                    6/30/2021                 65                   57                57        +2.90      %            +3.19      %                    7/9/2026     Nashville                       Office                              $235 / sqft                     71  %           3
     123        Senior Loan                    4/15/2021                 66                   57                57        +3.00      %            +3.30      %                    5/9/2026     Austin                          Office                              $277 / sqft                     73  %           3
     124        Senior Loan                    6/28/2021                 57                   57                56        +3.60      %            +4.86      %                   2/15/2023     Diversified - Spain             Hospitality                     $143,719 / unit                     56  %           3
     125        Senior Loan                   12/15/2021                155                   57                55        +3.26      %            +5.05      %                  12/15/2026     Dublin                          Multi                         $1,012,688 / unit                     79  %           3
     126        Senior Loan                   12/10/2020                 61                   55                55        +3.25      %            +3.54      %                    1/9/2026     Fort Lauderdale                 Office                              $189 / sqft                     68  %           3
     127        Senior Loan                   12/22/2021                 55                   55                54        +2.82      %            +2.96      %                    1/1/2027     Los Angeles                     Multi                           $272,500 / unit                     68  %           3
     128        Senior Loan                    6/26/2019                 70                   54                54        +3.35      %            +3.66      %                   6/20/2024     London - UK                     Office                              $610 / sqft                     61  %           3
     129        Senior Loan                   12/14/2018                 60                   52                53        +2.90      %            +3.33      %                    1/9/2024     Diversified - US                Industrial                           $39 / sqft                     57  %           2
     130        Senior Loan                   11/30/2016                 61                   52                52        +3.10      %            +3.22      %                   12/9/2023     Chicago                         Retail                            $1,014 / sqft                     54  %           4
     131        Senior Loan                    7/30/2021                 59                   51                51        +2.75      %            +2.96      %                    8/9/2026     Tampa Bay                       Multi                           $127,788 / unit                     71  %           3
     132        Senior Loan                    12/9/2021                 51                   51                51        +2.75      %            +2.89      %                    1/1/2027     Portland                        Multi                           $241,825 / unit                     65  %           3
     133        Senior Loan                    2/17/2021                 53                   51                51        +3.55      %            +3.75      %                    3/9/2026     Miami                           Multi                           $290,985 / unit                     64  %           3
     134        Senior Loan                    9/23/2021                 49                   49                49        +2.75      %            +2.86      %                   10/1/2026     Portland                        Multi                           $232,938 / unit                     65  %           3
     135        Senior Loan                     8/5/2021                 57                   49                49        +2.90      %            +3.04      %                    8/9/2026     Denver                          Office                              $186 / sqft                     70  %           3
     136        Senior Loan                   12/17/2021                 66                   49                48        +4.35      %            +4.93      %                    1/9/2026     Diversified - US                Other                             $3,693 / unit                     37  %           3
     137        Senior Loan                    8/27/2021                 51                   48                48        +3.75      %            +4.27      %                    9/9/2026     Diversified - US                Hospitality                     $107,519 / unit                     67  %           3
     138        Senior Loan                    7/20/2021                 48                   48                48        +2.75      %            +3.09      %                    8/9/2026     Los Angeles                     Multi                           $366,412 / unit                     60  %           3
     139        Senior Loan                    2/20/2019                 53                   47                47        +3.50      %            +3.92      %                    3/9/2024     Calgary - CAN                   Office                              $131 / sqft                     52  %           2
     140        Senior Loan                   12/29/2021                 47                   47                46        +2.85      %            +2.96      %                    1/1/2027     Dallas                          Multi                           $155,000 / unit                     73  %           3
     141        Senior Loan                    11/3/2017                 45                   45                45        +3.00      %            +3.25      %                   11/1/2022     Los Angeles                     Office                              $209 / sqft                     50  %           1
     142        Senior Loan                    7/30/2021                 45                   45                45        +2.75      %            +2.86      %                    8/1/2026     Portland                        Multi                            $62,378 / unit                     64  %           3
     143        Senior Loan                    10/1/2019                 48                   44                44        +3.75      %            +4.25      %                   10/9/2025     Atlanta                         Hospitality                     $249,016 / unit                     74  %           3
     144        Senior Loan                    7/29/2021                 42                   42                42        +2.75      %            +2.95      %                    8/9/2026     Las Vegas                       Multi                           $167,113 / unit                     72  %           3
     145        Senior Loan                    11/3/2021                 41                   41                41        +2.60      %            +2.94      %                   11/9/2026     Washington DC                   Multi                           $137,788 / unit                     68  %           3
     146        Senior Loan                    12/8/2021                 48                   40                40        +2.75      %            +2.96      %                   12/9/2026     Columbus                        Multi                           $132,401 / unit                     69  %           3
     147        Senior Loan                   12/23/2021                 38                   38                38        +2.35      %            +3.38      %                   4/26/2024     Corvallis                       Multi                            $65,793 / unit                     71  %           3
     148        Senior Loan                   12/23/2021                 38                   38                38        +3.40      %            +4.48      %                    6/1/2023     Boston                          Hospitality                     $165,441 / unit                     51  %           3
     149        Senior Loan                   12/23/2021                 38                   38                38        +3.00      %            +4.13      %                    9/1/2022     New York                        Other                                $21 / sqft                     15  %           2
     150        Senior Loan                   12/23/2021                 42                   38                38        +3.30      %            +3.45      %                    1/1/2027     Dallas                          Multi                           $102,717 / unit                     65  %           3



                                                                      continued…








                                       82
--------------------------------------------------------------------------------
                                         Origination            Total              Principal           Net Book           Cash                    All-in                     Maximum                                                                Loan Per                   Origination             Risk
                 Loan Type(1)              Date(2)            Loan(3)(4)           Balance(4)            Value          Coupon(5)                Yield(5)                  Maturity(6)           Location              Property Type            SQFT / Unit / Key                LTV(2)               Rating
   151 -       Senior Loan(4)                   Various              1,895                1,066             1,039        +2.97      %            +3.43      %                    3.7 yrs     Various                 Various                                 Various                     61  %          2.8
     188
               CECL reserve                                                                               (125)
               Loans receivable, net                        $    28,593          $    23,669          $ 21,878               + 3.22 %                +
3.55 %                    3.4 yrs                                                                                                 65  %          2.8





(1)Senior loans include senior mortgages and similar credit quality loans,
including related contiguous subordinate loans and pari passu participations in
senior mortgage loans.
(2)Date loan was originated or acquired by us, and the LTV as of such date.
Origination dates are subsequently updated to reflect material loan
modifications.
(3)Total loan amount reflects outstanding principal balance as well as any
related unfunded loan commitment.
(4)In certain instances, we finance our loans through the non-recourse sale of a
senior loan interest that is not included in our consolidated financial
statements. As of December 31, 2021, seven loans in our portfolio have been
financed with an aggregate $1.5 billion of non-consolidated senior interest,
which are included in the table above. Portfolio excludes our $79.2 million
subordinate position in the $379.3 million 2018 Single Asset Securitization.
Refer to Notes 4 and 17 to our consolidated financial statements for details of
the 2018 Single Asset Securitization.
(5)The weighted-average cash coupon and all-in yield are expressed as a spread
over the relevant floating benchmark rates, which include USD LIBOR, SOFR, GBP
LIBOR, SONIA, EURIBOR, and other indices as applicable to each loan. As of
December 31, 2021, 98% of our loans by total loan exposure earned a floating
rate of interest, primarily indexed to USD LIBOR. The other 2% of our loans
earned a fixed rate of interest, which we reflect as a spread over the relevant
floating benchmark rates, as of December 31, 2021, for purposes of the
weighted-averages. In addition to cash coupon, all-in yield includes the
amortization of deferred origination and extension fees, loan origination costs,
and purchase discounts, as well as the accrual of exit fees. Excludes a loan
accounted for under the cost-recovery method.
(6)Maximum maturity assumes all extension options are exercised, however our
loans may be repaid prior to such date.
(7)Loan is accounted for under the cost-recovery method.
                                       83

————————————————– ——————————

© Edgar Online, source Previews

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Bay Area homes are less affordable as interest rates rise https://rrreading.com/bay-area-homes-are-less-affordable-as-interest-rates-rise/ Sun, 06 Feb 2022 01:10:34 +0000 https://rrreading.com/bay-area-homes-are-less-affordable-as-interest-rates-rise/

Few homes for sale, high prices, fierce bidding wars — and now higher interest rates — have seeped into the Bay Area real estate market.

Rising interest rates have pushed buyers’ monthly payments up nearly 7% over the past month, and more increases may be on the way.

The Federal Reserve recently signaled that it may raise the loan funds target rate at its March meeting. The average rate for a 30-year fixed mortgage fell from 3.05% on Dec. 23 to 3.55% on Thursday, nearing its highest level during the COVID-19 pandemic.

Local real estate professionals say the impact of higher rates could be muted for many people in the Bay Area – where most buyers are wealthier, have higher incomes and can incorporate the increase in their budget.

Jodi Fischer, loan officer at All California Mortgage in Novato, said lenders predict a more balanced housing market is coming soon, “but it won’t necessarily be a buyer’s market, it’ll just be less frenetic.”

In Marin, she said, many people may still have smaller financial portfolios that are impacted by higher interest rates, such as first-time home buyers and those in need of a loan. most important. In comparison, those who refinance their home will have more equity “to play with in their home”.

“These are still historically good interest rates – it’s just that they’ve gone up and it’s much more of a buying market,” she said.

Jeff Tucker, senior economist at Zillow, a real estate data company, said the rise in interest rates came more suddenly than many expected. U.S. home prices also hit record highs last year, driven by a low inventory of homes for sale and intense demand from first-time buyers and families looking for more space to fit in. remote working hours.

Higher prices and rising interest rates, he said, are “just a punch to buyers.”

Agents say the pandemic residential real estate boom in the Bay Area has followed big stock market gains, boosting incomes for tech professionals. The expected rise in interest rates rattled stocks and clouded home-buying plans for professionals who had relied on grants and corporate equity programs to fund part of their purchases.

Demand remains strong and buyers’ choices have rarely been fewer. Yet skyrocketing interest rates and rising home prices in the Bay Area are making the area even less affordable for many families.

In September, only one in five Bay Area families could afford to buy the single-family home at the area’s median price, according to the California Association of Realtors. Ten years ago, about 45% of families could make a purchase.

The average monthly payment for a new mortgage on a median-priced home in San Francisco and the East Bay increased by $924 per month between January and December 2021. The median sale price of single-family homes in the nine-county area exceeded $1 million. Last year.

In Marin, according to Fischer, average payments for a home priced at $1.5 million grew more slowly, between $200 and $500 per month over the same period, depending on loan size and increases. interest rates. She said even this difference in cost would have a greater impact on low-income people in Marin and see those payments increase throughout the year.

Additionally, the Bay Area’s high prices mean almost all buyers in the area must qualify for “giant loans” – with amounts exceeding $970,800 – which have more stringent financial requirements but generally carry lower rates. lower interest. Jumbo loans typically have interest rates about half a percentage point lower than a standard mortgage.

In San Francisco and the East Bay, Zillow estimates the value of a typical home increased 17% in 2021, from $1.17 million to $1.37 million. The median Zillow home value index in San Francisco hit $1,542,347.

Marin home values ​​rose 15% to 17% last year, according to Christina Hale of Coldwell Banker in San Rafael. The median price for a single-detached home in Marin County was nearly $1.49 million in December, the latest month available from the county assessor’s office.

“I don’t think the housing market is going to slow down,” Hale said. “Interest rates will certainly rise, but they are still relatively low. I remember back in the 80s, when interest rates were at 18%.

She said most of her customers have to qualify for jumbo loans, and a small percentage from outside the region have tighter budgets, although there are cash buyers. She said even neighborhoods once considered more affordable, like Corte Madera, have become some of the toughest to find available homes, let alone win an offer for one.

Rita Bairley, who rents in Lagunitas, said she gave up being able to afford to buy a home in her own county. She also feels insecure about the stability of the rental as the booming real estate market pushes landlords to sell properties.

Bairley said his last residence, in Fairfax, was sold despite structural damage. She said she was given two weeks to move.

“I am now retired from teaching due to COVID and am constantly looking for affordable housing,” Bairley said. “Laws are twisted to accommodate wealthy landlords, and tenants are disposable.”

“Unless there’s a magical inheritance or a lottery,” she said, “I’ll probably be a tenant forever.”

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Canada Joins Mexico in Challenging How the U.S. Interprets USMCA Auto Rules of Origin https://rrreading.com/canada-joins-mexico-in-challenging-how-the-u-s-interprets-usmca-auto-rules-of-origin/ Thu, 13 Jan 2022 21:56:15 +0000 https://rrreading.com/canada-joins-mexico-in-challenging-how-the-u-s-interprets-usmca-auto-rules-of-origin/ WASHINGTON — Still licking its wounds over a dispute over dairy imports, Canada joined forces with Mexico on Thursday to challenge the United States’ interpretation of North American trade rules that govern duty-free cars and trucks.

WASHINGTON — Still licking its wounds over a dispute over dairy imports, Canada joined forces with Mexico on Thursday to challenge the United States’ interpretation of North American trade rules that govern duty-free cars and trucks.

Commerce Minister Mary Ng said Canada would join Mexico’s request for a dispute settlement panel under the United States-Mexico-Canada agreement to challenge how the United States assess the level of regional content in vehicles built in North America.

The Automotive Rules of Origin, as they are called, establish the amount of a vehicle that must originate in North America to qualify for duty-free status – 75% under the USMCA, known in Canada as the CUSMA name, compared to 62% under NAFTA.

The United States, however, is no longer willing to allow foreign-made materials, components, and parts to be considered regional content after they have been used or modified through the North American assembly process, such as this was the case under the previous agreement.

In a statement, Ng said the rules were negotiated in consultation with automakers and parts suppliers with the goal of deepening regional integration and increasing North American production and supply.

“The interpretation that the United States adopted in July 2020 is inconsistent with CUSMA and the understanding shared by parties and stakeholders throughout the negotiations,” Ng said.

“Canada, Mexico and the United States would all benefit from certainty that CUSMA is implemented as negotiated, and Canada is optimistic that a dispute settlement panel will help ensure a speedy resolution of that question.

Officials from the office of U.S. Trade Representative Katherine Tai did not respond to questions from the media on Thursday.

It is the second major dispute to erupt since the deal took effect in 2020. The first dispute settlement panel ruled last week in favor of a US complaint about how the Canada distributes its tariff rate quotas for imports of dairy products.

USTR managed to convince a panel of arbitrators that Ottawa favored processors over producers for its quotas, violating the terms of the agreement and depriving producers south of the border of their fair share of the Canadian market .

Trade experts say disputes are likely proof that a deal is working as it was designed, rather than not.

“I think that’s the right way to look at it,” said Mark Warner, a Toronto-based trade and investment lawyer with extensive experience in the Canadian-U.S. auto sector.

“No one promised that we wouldn’t have trade disputes… The point was to create a legal mechanism to resolve them.”

The USTR is trying to challenge long-standing precedents for how continental auto manufacturing has operated between the three countries for decades, said Dan Ujczo, Canada-U.S. trade specialist and senior attorney at the Thompson Hine firm, based in Ohio.

“I think it’s hard to ignore that there’s 30 years of history there, that’s how we did it for 30 years,” Ujczo said. “But it’s problematic – we need to get some certainty around this, especially as North America competes with the world for new automotive investment.”

The danger, he added, is that some automakers decide that the effort to respond to Byzantine new interpretations of the rules of origin is not worth the savings offered by the exemption of tariffs which only rise at 2.5%.

“At the end of the day, everyone agreed that we wanted more North American content, including the industry. But there’s a very careful balance to make sure you encourage North American production,” Ujczo said.

“The last thing we need right now in North America is more inflationary pressures, especially in the auto sector.”

Consumer prices in the United States rose 7% last year, the Bureau of Labor Statistics said on Wednesday, fueled by supply chain pressures, staffing shortages and strong consumer demand. , all because of the COVID-19 pandemic.

This report from The Canadian Press was first published on January 13, 2022.

James McCarten, The Canadian Press


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Senior Lawmaker Welcomes Visiting Lao Prime Minister | Politics https://rrreading.com/senior-lawmaker-welcomes-visiting-lao-prime-minister-politics/ Sat, 08 Jan 2022 10:44:00 +0000 https://rrreading.com/senior-lawmaker-welcomes-visiting-lao-prime-minister-politics/

President of the National Assembly Vuong Dinh Hue (R) and the Lao Prime Minister Phankham Viphavanh pose for a photo ahead of their meeting in Hanoi on January 8 (Photo: VNA)

Hanoi (VNA) – Chairman of
National Assembly (NA) Vuong Dinh Hue met Lao Prime Minister Phankham Viphavanh, on an official visit to Vietnam, in Hanoi on January 8.

The Lao Prime Minister praised the achievements that the Vietnamese Party, State and people have recently achieved, expressing his belief that under the leadership of the Vietnamese Communist Party, the Vietnamese people will successfully implement the resolution of the 13th. National Party Congress and socio-economic development strategy for 2021-2030, and continuously enhance the role and stature of the country in the region and in the world.

The host and guest affirmed that the Parties, Governments, Parliaments and peoples of their countries always attach importance and give top priority to maintaining the unique relationship between Vietnam and Laos.

They noted with satisfaction that despite the impacts of the COVID-19 pandemic, bilateral cooperation continues to develop through all channels and in all areas. They also praised the close cooperation between the specialized committees of the Vietnamese and Lao parliaments in the organization of workshops and the sharing of legislative experiences.

The highest lawmaker welcomes the visit of Laotian Prime Minister Hinh Anh 2The meeting between NA President Vuong Dinh Hue and Laotian Prime Minister Phankham Viphavanh in Hanoi on January 8 (Photo: VNA)

The leaders shared the view that the two parliaments should maintain coordination to monitor and facilitate the effective implementation of their countries’ agreements, while increasing consultation and experience sharing in legislative affairs to help fuel socio-economic recovery and post-pandemic development. .

President Hue said that the Vietnamese NA has made efforts to resolve all legal and institutional difficulties and organize resources to accelerate joint projects, especially the transport infrastructure projects linking the two countries and linking the Laos to Vietnam’s seaports, helping to connect Laos to the sea and transform it. into a regional integration connectivity center.

The two sides also agreed to pursue close coordination and mutual support in the activities of their parliaments, in particular during regional and international parliamentary forums./.

VNA

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5G Systems Integration Market Overview, Current & Future Trends 2021-2027 – Industrial Computing https://rrreading.com/5g-systems-integration-market-overview-current-future-trends-2021-2027-industrial-computing/ Tue, 04 Jan 2022 16:01:15 +0000 https://rrreading.com/5g-systems-integration-market-overview-current-future-trends-2021-2027-industrial-computing/

Chicago, United States: The report promotes itself as a smart and in-depth assessment tool as well as an excellent resource that will help you secure a position of strength in the world. 5G system integration Marlet. It includes Porter’s Five Forces Analysis and PESTLE to provide your business with critical insights and comparative data on the global 5G Systems Integration market. We have provided in-depth vendor landscape analysis to give you a comprehensive picture of current as well as future competitive scenarios in the global 5G System Integration Market. Our analysts use the latest primary and secondary research techniques and tools to prepare comprehensive and accurate market research reports.

The major players of the Global 5G System Integration Market are analyzed keeping in view their market share, recent developments, new product launches, partnerships, mergers or acquisitions, and markets served. We also provide exhaustive analysis of their product portfolios to explore the products and applications they focus on when operating in the global 5G Systems Integration Market. Further, the report offers two distinct market forecasts – one for the production side and another for the consumption side of the global 5G System Integration Market. It also provides useful recommendations for new and established players in the global 5G Systems Integration market.

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Competition in the 5G systems integration market by the main manufacturers / key player Profile:


Consultant
Integration of infrastructures
Integration of applications

Global demand for the 5G systems integration market is expected to experience strong consumer-driven development in key evolving markets. More growth opportunities arise between 2021 and 2027 compared to a few years ago, which signifies the rapid pace of change.

Impact of COVID-19:

The 5G System Integration market report analyzes the impact of Coronavirus (COVID-19) on the 5G System Integration industry. Since the COVID-19 virus outbreak in December 2019, the disease has spread to nearly 180+ countries around the world, with the World Health Organization declaring it a public health emergency. The global impacts of Coronavirus Disease 2019 (Covid-19) are already starting to be felt and will have a significant impact on the 5G Systems Integration market in 2021.

COVID-19 can affect the global economy in 3 main ways: by directly affecting production and demand, by creating supply chain and market disruptions, and by its financial impact on businesses and financial markets.

Market study by type:

Manufacturing
Energy and utilities
Media and entertainment
IT & Telecom
Transport & Logistics / BFSI / Health / Trade

Market study by applications:

Competitive landscape

The report begins with a market overview and reviews the growth prospects of the 5G Systems Integration market. The report covers the details resulting from the analysis of the targeted market. The integration of the 5G system includes a successful system in general, containments and global disclosures of past information as well as present and future needs that may be relevant to development. The report provides specific data on the major factors impacting the growth of the fuels market.

The 5G Systems Integration Market report covers the manufacturers’ data including shipping, price, revenue, gross margin, service record, commercial distribution, etc., this information helps the consumer to know the suitors better. This report also covers all the regions and countries of the world, showing a regional development status including the size, volume and value of the business sector as well as the price data.

Research methodology :

This research study involves the intensive use of primary and secondary data sources.

The research process involves the study of various factors affecting the industry including government policy, market environment, competitive landscape, historical data, current market trends, technological innovation, technologies to upcoming and technical advancements in the related industry, and market risks, opportunities, obstacles and challenges in the market.

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Research / Design Programs table for this report

The report provides information on the following pointers:

Market penetration: Comprehensive insights into the product portfolios of the major players in the 5G Systems Integration market.

Competitive assessment: In-depth assessment of market strategies, geographic and business segments of key market players.

Product Development / Innovation: Detailed information on upcoming technologies, R&D activities and product launches in the market.

Market development: Comprehensive information on emerging markets. This report analyzes the market for various segments across geographies.

Market diversification: Comprehensive information about new products, untapped geographies, recent developments, and investments in the 5G Systems Integration market.

Highlights from the table of contents:

Chapter 1 Introduction:

The 5G System Integration Research Work Report provides a compact introduction to the global market. This segment provides reviews of the major participants, an overview of the 5G Systems Integration industry, outlook for key areas, Financial Services, and various challenges facing the 5G Systems Integration market. This section depends on the scope of the study and the reporting guideline.

Chapter 2. 5G Systems Integration Market Outstanding Report Scope:

This is the second most important chapter which covers market segmentation as well as a definition of 5G system integration. It characterizes the entire scope of the 5G System Integration report and the various functions described therein.

Chapter 3. 5G System Integration Market Dynamics and Key Indicators:

This chapter contains key elements that focus on the drivers [includes increasing global 5G System Integration frequency and increasing investment in 5G System Integration], main market constraints [high cost of 5G System Integration], Opportunities [emerging markets in developing countries] and details emerging trends [consistent innovation of newer Screening Products] Developmental difficulties and influencing factors identified in this latest report.

Chapter 4. 5G Systems Integration Market Type Segments:

This 5G System Integration Market report shows the market development for various types of products presented by the most ambitious organizations.

Chapter 5. Application segments of the 5G System Integration Market:

The analysts who wrote the report fully assessed the market value of key applications and exercised future freedoms.

Chapter 6. Geographic Analysis of 5G Systems Integration Market:

Each provincial market is deliberately examined in order to understand its current and future development, improvement, and the demand situation for that market.

Chapter 7. COVID-19 Pandemic 5G System Integration Market Impact on the Global 5G System Integration Market:

7.1 North America: Overview of the COVID-19 Impact Study 2021-2027

7.2 Europe: provides full information on the COVID-19 impact study 2021-2027

7.3 Asia-Pacific: potential impacts of COVID-19 (2021-2027)

7.4 Rest of the world: assessment of the impact of the COVID-19 pandemic

Chapter 8. Manufacturing Profiles of 5G System Integration Market:

The major players of the 5G System Integration market are identified in the report on the basis of their market size, market served, product, application, regional development, and other variables.

Chapter 9. Analysis of the estimation of the 5G systems integration market:

This chapter contains a price analysis by region and various forecasts.

Chapter 10. North America 5G Systems Integration Market Analysis:

This chapter provides an assessment of the 5G system integration product sales in major countries of United States and Canada, along with a detailed segmental view of these countries for the forecast period 2021-2027.

Chapter 11. Latin America 5G Systems Integration Market Analysis:

The main countries of Brazil, Chile, Peru, Argentina and Mexico are assessed for the integration of the 5G system.

Chapter 12. Europe 5G Systems Integration Market Analysis:

The 5G System Integration Market Analysis Report stores information on the 5G System Integration supply, demand and sales of Germany, France, Great Britain, Spain, BENELUX, in Scandinavia and Italy.

Chapter 13. Asia-Pacific Ex-Japan (APEJ) 5G Systems Integration Market Analysis:

The countries of Greater China, ASEAN, India, Australia and New Zealand are assessed, and the assessment of 5G systems integration sales in these countries is covered.

Chapter 14. Analysis of Middle East and Africa (MEA) 5G Systems Integration Market Analysis of 5G Systems Integration Market:

This chapter focuses on the market scenario of 5G system integration in GCC countries, Israel, South Africa and Turkey.

Chapter 15. 5G Systems Integration Market Research Methodology

The chapter on the search procedure contains the primary realities that accompany it,

15.1 Coverage

15.2 Documentary research

15.3 Primary research

Chapter 16. Conclusion …….

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WORLD VISION: Further integration of CARICOM countries cannot wait https://rrreading.com/world-vision-further-integration-of-caricom-countries-cannot-wait/ Fri, 31 Dec 2021 22:50:40 +0000 https://rrreading.com/world-vision-further-integration-of-caricom-countries-cannot-wait/

By SIR RONALD SANDERS

(The author is the Ambassador of Antigua and Barbuda to the United States and the OAS. He is a Senior Fellow at the Institute of Commonwealth Studies at the University of London and at Massey College at the University. of Toronto, the opinions expressed are his own).

The tornado destruction of Kentucky, a state in the southeastern United States of America (United States), on December 12, has lessons for the countries of the Caribbean Community (CARICOM), at dawn 2022 amid the continuing COVID-19 pandemic and weakened economies.

One of the lessons is that those CARICOM member states that continue to insist that CARICOM remain “a community of sovereign states”, each pursuing distinct policies – sometimes to the detriment of one another – commit to the way of perdition, because the facts of their situation justify.

Many sovereign CARICOM states would not be solvent without the official development assistance they receive. Their sovereignty is limited by the extent of their financial and economic dependence, which they pay the price for. Curiously, some of them prefer to pay a price to outside powers, rather than pooling their individual sovereignty within a common autonomous authority with their CARICOM partners in order to build their strength and resilience.

Why should people in other American states, like Texas or New York, care about the devastation in Kentucky? After all, Kentucky representatives in the US Senate, Mitch McConnell and Rand Paul, fiercely resist the US federal government. They want to retain power in the governor and legislature of Kentucky, just as some governments in the CARICOM countries insist on their “sovereignty.”

Kentucky is a state within the Union of 50 states that make up the United States. If the U.S. federal government doesn’t use domestic resources to help Kentucky rebuild, the state will fall into unemployment, poverty, and crime. It would eventually become a failed state. People would flee to find livelihoods elsewhere, and investors would move their money to economies that work. The federal government couldn’t allow Kentucky to fail, not even with people like Mitch McConnell and Rand Paul favoring state power over federal authority. If Kentucky were left on its own, it would become a weak link in the American chain, making the country vulnerable and exposing it to security threats.

The federal government has stepped up to provide immediate aid to Kentucky and to commit huge sums of money for its reconstruction and recovery, as the United States is one nation. It is not a group of sovereign states. If the United States were just a community of independent states, like the members of CARICOM, it would not be the greatest economic and military power in the world. Instead, 50 states would exist – some stronger and better endowed than others, but each of them much weaker individually than they are as a single nation, and certainly none of them. they are not a force in the world.

In shaping their independence, the original 13 countries (then the British colonies) debated a union with a strong federal government or a collection of independent and disparate states.

They opted for a strong federal government precisely because they recognized that only by joining their collective resources would they be strong enough to resist England, France, Spain and others. European powers which would have kept them dependent and enslaved.

From the very beginnings of CARICOM, governments, haunted by the collapse of the West Indies Federation caused by ambitious and manipulative local politicians determined to be big fish in small bowls have resisted the Union which would have reduced their vulnerabilities, strengthened their resilience and made them economically stronger.

What is striking about the years 2020 and 2021 is that the greatest success of the “sovereign” states of the Caribbean Community has come from joint institutions and collective action. No CARICOM country would have battled COVID-19 without the Caribbean Public Health Agency; none would have responded quickly enough to natural disasters without the Caribbean Disaster Emergency Management Agency; and none would have mobilized insurance relief without the Caribbean Disaster Risk Insurance Mechanism or the emergency resources of the Caribbean Development Bank.

As it stands, despite the help of regional agencies, almost all of them are now in debt and the recovery will be long and difficult, with the exception of Guyana with the addition of oil wealth and gas resources to its traditional resources of agriculture and precious metals.

Recently Guyana’s President Irfaan Ali, speaking to his country’s private sector, said that “regional integration and other ‘fantasies’ cannot be taken seriously until current (trade) barriers exist. are not deleted ”. He’s right about that. CARICOM claims to be a common market, but countries have erected trade barriers against themselves, while opening their markets to the European Union and the UK with little trade benefit in return. After nearly 50 years of existence, CARICOM is still not a common market and is far from a customs union. The much-vaunted “single market and economy” has become a fading aspiration.

But it is not only trade barriers that should be removed. CARICOM and its goals need to be reconsidered, reworked and reoriented. No one should be happy with their current condition; everything should be ready to rearrange it.

It is highly likely that CARICOM governments are still not ready for a more perfect union that could help isolate each CARICOM country from the serious challenges that lie ahead in 2022 and beyond.

However, if the past two decades have proven anything, it is that individual sovereignty is not the answer to economic progress or the resilience of CARICOM member states. Like Kentucky, they lack the financial capacity and resources for effective resilience.

In this regard, the CARICOM Treaty now needs to be revised. The mistakes of its last revision should not be repeated. Implementation mechanisms must be put in place to oversee the completion of a common market, including the free movement of all, just as there is the free movement of capital.

There should also be clear compensation mechanisms for states that dismantle protectionist policies. Countries that cannot adhere to these necessary actions should not delay the integration of others; they should opt out and consider joining later.

If CARICOM is to have meaning in the life of its member countries, further integration cannot wait.

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