Traffic services – Piazza Duomo 2 http://piazzaduomo2.com/ Sat, 19 Nov 2022 09:19:23 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://piazzaduomo2.com/wp-content/uploads/2021/11/profile.png Traffic services – Piazza Duomo 2 http://piazzaduomo2.com/ 32 32 Arsenal news LIVE: Saka new contract, Ronaldo ‘hopes’ Gunners win Premier League, Edu sporting director role – latest https://piazzaduomo2.com/arsenal-news-live-saka-new-contract-ronaldo-hopes-gunners-win-premier-league-edu-sporting-director-role-latest/ Sat, 19 Nov 2022 08:47:04 +0000 https://piazzaduomo2.com/arsenal-news-live-saka-new-contract-ronaldo-hopes-gunners-win-premier-league-edu-sporting-director-role-latest/ Hello Arsenal fans! Club legend Jack Wilshire has made peace with not being a player anymore. Now Arsenal Under-18 manager, Wilshere has become fully immersed in the all-consuming life of training session planning, data analysis, systems, man management and team selection. ‘crew. He was, of course, one of the most gifted midfielders of this generation […]]]>

Hello Arsenal fans!

Club legend Jack Wilshire has made peace with not being a player anymore.

Now Arsenal Under-18 manager, Wilshere has become fully immersed in the all-consuming life of training session planning, data analysis, systems, man management and team selection. ‘crew.

He was, of course, one of the most gifted midfielders of this generation – before injuries cut short his career.

So now Wilshere has become a Sun World Cup columnist, who will share his knowledge with readers as he competes on the biggest stages at Arsenal and England and learns the ropes as a rookie coach. in the Emirates.

He also revealed that when he was fired by former pundits as pundits, he took matters into his own hands – and phoned them!

Aaron Ramsdale continues to be tracked by his England team-mates against Arsenal at the top of the Premier League table.

The Gunners goalkeeper is with the Three Lions side as they prepare for the World Cup in Qatar.

Ramsdale revealed players pissed him off about him saying Arsenal were the best.

The 24-year-old said: “Most of the jokes come from Conor Coady and Trent Alexander-Arnold.

“They keep walking around pretending I said ‘Five point lead’, every day.”

Meanwhile, Real Betis ace William Carvahlho is reportedly being targeted by Arsenal ahead of the January transfer window.

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BLACK KNIGHT, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://piazzaduomo2.com/black-knight-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Thu, 03 Nov 2022 12:55:05 +0000 https://piazzaduomo2.com/black-knight-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding expectations, hopes, intentions or strategies […]]]>
The statements contained in this Quarterly Report on Form 10-Q that are not
purely historical are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), including
statements regarding expectations, hopes, intentions or strategies regarding the
future. Forward-looking statements are based on Black Knight, Inc. and its
subsidiaries ("Black Knight," the "Company," "we," "us" or "our") management's
beliefs, as well as assumptions made by, and information currently available to,
them. Because such statements are based on expectations as to future financial
and operating results and are not statements of fact, actual results may differ
materially from those projected. We undertake no obligation to update any
forward-looking statements, whether as a result of new information, future
events or otherwise. The risks and uncertainties that forward-looking statements
are subject to include, but are not limited to:

the occurrence of any event, change or other circumstance which may give rise to

? a right in favor of Intercontinental Exchange, Inc. (“ICE”) or us to

terminate the definitive merger agreement setting the terms of

the proposed transaction;

? the outcome of any legal proceedings that may be brought against us or ICE;

the possibility that the proposed transaction may not close as expected or

at all because it required regulatory or other approvals and other conditions to

? closing are not received or satisfied in a timely manner or at all (and the risk

that such approvals may result in the imposition of conditions that could

adversely affect ICE or us or the expected benefits of the project

transaction);

? commercial uncertainties and contractual restrictions while the ICE Transaction

is pending, which could adversely affect our business and operations;

? the diversion of attention and time from the management of current affairs

merger transactions and opportunities;

? security breaches against our information systems or breaches involving our

third-party providers;

? our ability to maintain and develop our relationships with our customers;

? our ability to comply with or change laws, rules and regulations that

affect our business and that of our customers;

? our ability to adapt our solutions to technological or evolving developments

industry standards or to achieve our growth strategies;

? our ability to protect our proprietary software and information rights;

? the effect of any defects, development delays, installation

difficulties or system failures on our business and reputation;

? changes in general economic, business, regulatory and political conditions;

? impacts on our business operations caused by the occurrence of a disaster or

world crisis;

? the effects of our existing leverage on our ability to make acquisitions and

invest in our business;

? risks associated with recruiting and retaining our skilled workforce;

? risks associated with data availability;

? our ability to consume, integrate and successfully achieve goals

benefits of acquisitions;

? the risks associated with our investment in DNB; and

other risks and uncertainties detailed in the “Statement Regarding

? Forward-Looking Information”, “Risk Factors” and other sections of our Annual Report

Report on Form 10-K for the year ended December 31, 2021 and other deposits with

the Security and Exchange Commission (“SECOND”).



The following discussion should be read in conjunction with our Annual Report on
Form 10-K for the year ended December 31, 2021 filed with the SEC on February
25, 2022 and other filings with the SEC.

Insight


Black Knight is a premier provider of integrated, innovative, mission-critical,
high-performance software solutions, data and analytics to the U.S. mortgage and
real estate markets. Our mission is to transform the markets we serve by
delivering innovative solutions that are integrated across the homeownership
lifecycle and that result in realized efficiencies, reduced risk and new
opportunities for our clients to help them achieve greater levels of success.

We believe businesses leverage our robust integrated solutions across the homeownership lifecycle to help retain existing customers, win new customers, mitigate risk and operate more efficiently. Our customers rely on our proven, comprehensive, and scalable solutions and our unwavering commitment to providing exceptional customer support to achieve their strategic goals and better serve their customers.

We have a focused strategy of continuous innovation across our business, supported by strategic acquisitions – and, more importantly, the integration of those innovations and acquisitions into our broader ecosystem. Our size allows us to continually invest in


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our business, both to meet ever-changing industry requirements and to maintain
our position as a leading provider of platforms for the mortgage and real estate
markets.

Deep business and regulatory expertise and a holistic view of the markets we
serve allow us the privilege of being a trusted advisor to our clients, who
range from the nation's largest lenders and mortgage servicers to institutional
portfolio managers and government entities, to individual real estate agents and
mortgage brokers. Clients leverage our software ecosystem across a range of real
estate and housing finance verticals through multiple digital channels, using
our offerings to drive more business, reduce risk and deliver a best-in-class
customer experience, all while operating more efficiently and cost-effectively.

The table below summarizes active first and second mortgage loans on our mortgage management software solution and related market data, reflecting our market leadership in mortgage management software solutions (in millions) :

                                First lien                     Second lien                     Total first and second lien
                           as of September 30,             as of September 30,                    as of September 30,
                           2022            2021            2022            2021              2022                          2021
Active loans              32.9             32.5            3.1              3.1              36.0                           35.6
Market size               53.4 (1)         52.9 (1)       12.7 (2)         12.3 (2)          66.1                           65.2
Market share                62 %             61 %           24 %             25 %              54 %                           55 %

Note: The above percentages may not be recalculated due to rounding.

Estimates according to the Black Knight Mortgage Monitor Report as of (1) August 2022 and September 30, 2021 for WE first mortgage loans. These

estimates are subject to change.

Estimates according to October 2022 and 2021 Equifax National Consumer (2) Credit Trends Report at September 30, 2022 and 2021 for WE second privilege

Mortgages. These estimates are subject to change.



We have long-standing relationships with our clients - a majority of whom enter
into long-term contracts that include multiple, integrated products embedded
into mission-critical, client-side workflow and decision processes. This speaks
to the confidence our clients, which include some of the largest financial
institutions in the world, have in our solutions and our commitment to serve
them. The contractual nature of our revenues and stickiness of our client
relationships make our revenues both highly visible and recurring in nature. Our
scale and integrated ecosystem of solutions drive significant operating leverage
and cross-sell opportunities, enabling our clients to continually benefit from
new and greater operational efficiencies while simultaneously allowing us to
generate strong margins and cash flows.

Our markets


The Black Knight ecosystem stretches across four core "pillar" verticals:
mortgage loan servicing, mortgage origination, real estate and capital markets;
with our data and analytics flowing throughout and between the interconnected
ecosystem of solutions. As we integrate our innovations and acquired
technologies, we are committed to continually improving the end consumer
experience, driving further efficiencies for our clients and helping them to win
new customers and retain existing customers.

RECENT DEVELOPMENTS

Optimal blue transaction

On February 15, 2022, we entered into a purchase agreement with Cannae and THL
and acquired all of their Class A units of Optimal Blue Holdco, LLC ("Optimal
Blue Holdco") through Optimal Blue I, LLC ("Optimal Blue I"), a Delaware limited
liability company and our wholly-owned subsidiary, in exchange for aggregate
consideration of 36.4 million shares of DNB common stock valued at $722.5
million and $433.5 million in cash. The cash portion of the consideration was
funded with borrowings under our revolving credit facility. The aggregate
consideration of $1.156 billion and number of shares of DNB common stock paid to
Cannae and THL was based on the 20-day volume-weighted average trading price of
DNB for the period ended on February 14, 2022. As of February 15, 2022, we own
100% of the Class A units of Optimal Blue Holdco. Refer to Note 1 - Basis of
Presentation and Overview in Item 1 of Part I of this Quarterly Report on
Form 10-Q for additional information.

Merger Agreement

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On May 4, 2022, we entered into a definitive agreement to be acquired by ICE, a
leading global provider of data, technology, and market infrastructure, in a
transaction valued at approximately $13.1 billion, or $85 per share, with
consideration in the form of a mix of cash (80%) and stock (20%) (the "ICE
Transaction"). The aggregate cash consideration in the ICE Transaction consists
of approximately $10.5 billion and the aggregate stock consideration was valued
at approximately $2.6 billion based on ICE's 10-day volume weighted average
price as of May 2, 2022 of $118.09. The ICE Transaction is expected to close in
the first half of 2023, subject to the receipt of regulatory approvals and the
satisfaction of customary closing conditions. The ICE Transaction has been
approved by the Boards of Directors of Black Knight and ICE and Black Knight
shareholders. Refer to Note 1 - Basis of Presentation and Overview in Item 1 of
Part I of this Quarterly Report on Form 10-Q for additional information.

Trade Trends and Conditions

Market trends

Market trends that have prompted lenders and service providers to seek software, data and analytics solutions include:

Lenders increasingly focused on core operations. As a result of regulatory
scrutiny, a decline in refinance origination volumes due to a rising interest
rate environment and the higher cost of doing business, we believe lenders have
become more focused on their core operations, including ways to reduce costs. We
believe lenders are increasingly shifting from in-house solutions to third-party
solutions that provide a more comprehensive and efficient solution. Lenders
require these providers to deliver best-in-class solutions and deep domain
expertise and to assist them in maintaining regulatory compliance and reducing
costs.

Integral role of technology in the U.S. mortgage loan industry. Over the past
few years, the homebuyer's processes have become more digital, and banks and
other lenders and servicers have become increasingly focused on automation and
workflow management to operate more efficiently and meet their regulatory
requirements as well as using technology to enhance the consumer experience
during the mortgage loan origination, closing and servicing processes. We
believe technology providers must be able to support the complexity and dynamic
nature of the market, display extensive industry knowledge and possess the
financial resources to make the necessary investments in technology and software
to support lenders and servicers. This includes an enhanced digital experience
along with the application of artificial intelligence, robotic process
automation and adaptive learning.

Heightened demand for enhanced transparency and analytic insight. As U.S.
mortgage loan market participants work to minimize the risk in lending,
servicing and capital markets, they rely on the integration of data and
analytics with solutions that enhance the decision-making process. These
industry participants rely on large comprehensive third-party databases coupled
with enhanced analytics to achieve these goals. Mortgage loan market
participants are eager for timely data and insights to help them plan and react
to the changing environment.

Regulatory changes and oversight. Most U.S. mortgage loan market participants
are subject to a high level of regulatory oversight and regulatory requirements
as federal and state governments have enacted various new laws, rules and
regulations. It is our experience that mortgage lenders and servicers have
become more focused on minimizing the risk of non-compliance with regulatory
requirements and are looking toward solutions that assist them in complying with
their regulatory requirements. We expect this trend to continue as additional
governmental programs and regulations have been enacted to address the economic
concerns resulting from the pandemic, and our clients have had to adapt their
systems and processes in record time to the shifting landscape. In addition, our
clients and our clients' regulators have elevated their focus on privacy and
data security in light of an increased level of cybersecurity incidents. We
expect the industry focus on privacy and data security to continue to increase.

Our sectors of activity

Our business is organized into two segments: Software Solutions and Data & Analytics.


Software Solutions

Our Software Solutions segment offers software solutions that support loan management, loan origination and loan settlement services. Our software solutions revenue represented 86% of our consolidated revenue for the three and nine months ended September 30, 2022and 85% for the three and nine month periods ended September 30, 2021.


                                       26

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The following table summarizes our software solutions revenues (in millions):

                                    Three months ended       % of segment       Nine months ended       % of segment
                                      September 30,            revenues          September 30,            revenues
                                     2022         2021      2022      2021       2022        2021      2022      2021
Servicing software solutions      $    217.7     $ 210.9       65 %     66 %  $    662.0    $ 621.4       66 %     67 %
Origination software solutions         115.0       108.7       35 %     34
%       340.8      299.4       34 %     33 %
Software Solutions                $    332.7     $ 319.6      100 %    100 %  $  1,002.8    $ 920.8      100 %    100 %


Our servicing software solutions primarily include our core servicing software
solution that automates loan servicing, including loan setup and ongoing
processing, customer service, accounting, reporting to the secondary mortgage
market and investors and web-based workflow information systems. Our servicing
software solutions primarily generate revenues based on the number of active
loans outstanding on our system, which has been very stable; however, we have
some exposure to foreclosure and bankruptcy loan volumes, which can fluctuate
based on economic cycles and other factors.

As a result of the effects of the broad-based response to the COVID-19 pandemic,
we have seen lower foreclosure-related transactional revenues due to the
mortgage loan foreclosure moratorium and other measures that were in effect from
2020 through 2021. We have seen higher foreclosure-related transactional
revenues in 2022 compared to 2021 as a result of the expiration of the federal
foreclosure moratorium. According to corresponding Black Knight Mortgage Monitor
reports, foreclosure starts were 56,400 for the three months ended September 30,
2022 compared to 15,200 for the 2021 period. Although foreclosure starts are
higher than the prior year period, they are still below levels prior to the
pandemic.

Our origination software solutions primarily include our solutions that automate
and facilitate the origination of mortgage loans and provide an interconnected
network allowing the various parties and systems associated with lending
transactions to exchange data quickly and efficiently. Our exposure to
origination volumes is limited as our loan origination system revenues are based
on closed loan volumes subject to minimum base software fees that are
contractually obligated, and our secondary marketing technologies' revenues are
primarily subscription-based. Some of our origination software solutions are
exposed to variances in origination volumes, primarily related to refinance
volumes, due to the nature of the services provided. While we saw elevated
refinance origination volumes for a prolonged period of time, we have seen lower
origination volumes in 2022 due to record volumes in prior years and a rising
interest rate environment. According to the October 2022 Mortgage Bankers
Association Mortgage Finance Forecast, mortgage loan originations have declined
63% for the three months ended September 30, 2022 compared to the 2021 period.
The portion of our origination software solutions revenues that are more
sensitive to origination volumes were approximately 3% of our consolidated
revenues for the three months ended September 30, 2022, and revenues related to
these origination software solutions declined approximately 37% for the three
months ended September 30, 2022 compared to the 2021 period, representing a
headwind of approximately $6.2 million.

Data and analytics


Our Data and Analytics segment offers data and analytics solutions to the
mortgage, real estate and capital markets verticals. These solutions include
property ownership data, lien data, servicing data, automated valuation models,
collateral risk scores, behavioral models, a multiple listing service software
solution and other data solutions. Our data and analytics business is primarily
based on longer-term strategic data licenses, other data licenses and
subscription-based revenues. For both the three and nine months ended September
30, 2022, our data and analytics revenues were 14% of our consolidated revenues.
For both the three and nine months ended September 30, 2021, our data and
analytics revenues were 15% of our consolidated revenues. The portion of our
data and analytics solutions revenues that are more sensitive to fluctuations in
home buying activity and origination volumes primarily relate to services where
we provide software and data necessary for title insurance and other settlement
service activities. Revenues from these solutions were approximately 2% of our
consolidated revenues for the three months ended September 30, 2022 and declined
approximately 33% for the three months ended September 30, 2022 compared to the
2021 period, representing a headwind of approximately $4.7 million.

Operating results

Key performance indicators

Software Solutions and Data and Analytics segment revenue, EBITDA and EBITDA margin are reported in accordance with Accounting Standards Codification Topic 280, Segment Reporting. These measures are reported to the chief operating decision maker for


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purposes of making decisions about allocating resources to the segments and
assessing their performance. For these reasons, these measures are excluded from
the definition of non-GAAP financial measures under the SEC's Regulation G and
Item 10(e) of Regulation S-K.

© Edgar Online, source Previews

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ENOVA INTERNATIONAL, INC. MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS (Form 10-Q) https://piazzaduomo2.com/enova-international-inc-management-report-and-analysis-of-financial-position-and-operating-results-form-10-q/ Fri, 28 Oct 2022 20:30:10 +0000 https://piazzaduomo2.com/enova-international-inc-management-report-and-analysis-of-financial-position-and-operating-results-form-10-q/ The following discussion of financial condition, results of operations, liquidity and capital resources and certain factors that may affect future results, including economic and industry-wide factors, of Enova International, Inc. and its subsidiaries should be read in conjunction with our consolidated financial statements and accompanying notes included under Part I, Item 1 of this Quarterly […]]]>
The following discussion of financial condition, results of operations,
liquidity and capital resources and certain factors that may affect future
results, including economic and industry-wide factors, of Enova International,
Inc. and its subsidiaries should be read in conjunction with our consolidated
financial statements and accompanying notes included under Part I, Item 1 of
this Quarterly Report on Form 10-Q, as well as with Management's Discussion and
Analysis of Financial Condition and Results of Operations included in our Annual
Report on Form 10-K for the year ended December 31, 2021. This Management's
Discussion and Analysis of Financial Condition and Results of Operations
contains forward-looking statements. The matters discussed in these
forward-looking statements are subject to risk, uncertainties, and other factors
that could cause actual results to differ materially from those made, projected
or implied in the forward-looking statements. Please see "Risk Factors" and
"Cautionary Statement Concerning Forward-Looking Statements" for a discussion of
the uncertainties, risks and assumptions associated with these statements.

COMPANY OVERVIEW


We are a leading technology and analytics company focused on providing online
financial services. In 2021, we extended approximately $3.1 billion in credit or
financing to borrowers and for the nine months ended September 30, 2022, we
extended approximately $3.3 billion in credit or financing to borrowers. As of
September 30, 2022, we offered or arranged loans or draws on lines of credit to
consumers in 37 states in the United States and Brazil. We also offered
financing to small businesses in all 50 states and Washington D.C. in the United
States. We use our proprietary technology, analytics and customer service
capabilities to quickly evaluate, underwrite and fund loans or provide
financing, allowing us to offer consumers and small businesses credit or
financing when and how they want it. Our customers include the large and growing
number of consumers who and small businesses which have bank accounts but use
alternative financial services because of their limited access to more
traditional credit from banks, credit card companies and other lenders. We were
an early entrant into online lending, launching our online business in 2004, and
through September 30, 2022, we have completed approximately 57.2 million
customer transactions and collected more than 61 terabytes of currently
accessible customer behavior data since launch, allowing us to better analyze
and underwrite our specific customer base. We have significantly diversified our
business over the past several years having expanded the markets we serve and
the financing products we offer. These financing products include installment
loans and receivables purchase agreements ("RPAs") and line of credit accounts.

We believe our customers highly value our products and services as an important
component of their personal or business finances because our products are
convenient, quick and often less expensive than other available alternatives. We
attribute the success of our business to our advanced and innovative technology
systems, the proprietary analytical models we use to predict the performance of
loans and finance receivables, our sophisticated customer acquisition programs,
our dedication to customer service and our talented employees.

We have developed proprietary underwriting systems based on data we have
collected over our more than 18 years of experience. These systems employ
advanced risk analytics, including machine learning and artificial intelligence,
to decide whether to approve financing transactions, to structure the amount and
terms of the financings we offer pursuant to jurisdiction-specific regulations
and to provide customers with their funds quickly and efficiently. Our systems
closely monitor collection and portfolio performance data that we use to
continually refine machine learning-enabled analytical models and statistical
measures used in making our credit, purchase, marketing and collection
decisions. Approximately 90% of models used in our analytical environment are
machine learning-enabled.

Our flexible and scalable technology platform allows us to process and complete
customers' transactions quickly and efficiently. In 2021, we processed
approximately 2.2 million transactions, and we continue to grow our loans and
finance receivable portfolios and increase the number of customers we serve
through desktop, tablet and mobile platforms. Our highly customizable technology
platform allows us to efficiently develop and deploy new products to adapt to
evolving regulatory requirements and consumer preference, and to enter new
markets quickly. In 2012, we launched a new product in the United States
designed to serve near-prime customers. In June 2014, we launched our business
in Brazil, where we arrange financing for borrowers through a third-party
lender. In addition, in July 2014, we introduced a new line of credit product in
the United States to serve the needs of small businesses. In June 2015, we
further expanded our product offering by acquiring certain assets of a company
that provides financing and installment loans to small businesses by offering
RPAs. In October 2020, we acquired, through a merger, On Deck Capital Inc.
("OnDeck"), a small business lending company offering lending and funding
solutions to small businesses primarily in the U.S. to expand our small business
offerings. In March 2021, we acquired Pangea Universal Holdings ("Pangea"),
which provides mobile international money transfer services to customers in the
U.S with a focus on Latin America and Asia. These new products have allowed us
to further diversify our product offerings and customer base.

We have been able to consistently acquire new customers and successfully
generate repeat business from returning customers when they need financing. We
believe our customers are loyal to us because they are satisfied with our
products and services. We acquire new customers from a variety of sources,
including visits to our own websites, mobile sites or applications, and through
direct marketing,
                                       22
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affiliate marketing, lead providers and relationships with other lenders. We
believe that the online convenience of our products and our 24/7 availability to
accept applications with quick approval decisions are important to our
customers.

Once a potential customer submits an application, we quickly provide a credit or
purchase decision. If a loan or financing is approved, we or our lending partner
typically fund the loan or financing the next business day or, in some cases,
the same day. During the entire process, from application through payment, we
provide access to our well-trained customer service team. All of our operations,
from customer acquisition through collections, are structured to build customer
satisfaction and loyalty, in the event that a customer has a need for our
products in the future. We have developed a series of sophisticated proprietary
scoring models to support our various products. We believe that these models are
an integral component of our operations and allow us to complete a high volume
of customer transactions while actively managing risk and the related credit
quality of our loan and finance receivable portfolios. We believe our successful
application of these technological innovations differentiates our capabilities
relative to competing platforms as evidenced by our history of strong growth and
stable credit quality.

PRODUCTS AND SERVICES

Our online financing products and services provide customers with a deposit of
funds to their bank account in exchange for a commitment to repay the amount
deposited plus fees, interest and/or revenue on the receivables purchased. We
originate, arrange, guarantee or purchase installment loans, line of credit
accounts and receivables purchase agreements ("RPAs") to consumers and small
businesses. We have one reportable segment that includes all of our online
financial services.

Installment loans. Our installment loans are either written directly by us,
purchased as part of our Bank Programs as discussed below, or are those that we
arrange and guarantee as part of our CSO program as discussed below. We offer,
or arrange through our CSO program, unsecured consumer installment loan products
in 37 states in the United States and small business installment loans in 47
states and in Washington D.C. Internationally, we also offer or arrange
unsecured consumer installment loan products in Brazil. Terms for our
installment loan products range between two and 60 months. Loans may be repaid
early at any time with no additional prepayment charges.

Line of credit accounts. We directly offer, or purchase a participation interest
in receivables through our Bank Programs, new consumer line of credit accounts
in 31 states (and continue to service existing line of credit accounts in two
additional states) in the United States and business line of credit accounts in
47 states and in Washington D.C. in the United States, which allow customers to
draw on their unsecured line of credit in increments of their choosing up to
their credit limit. Customers may pay off their account balance in full at any
time or make required minimum payments in accordance with the terms of the line
of credit account. As long as the customer's account is in good standing and has
credit available, customers may continue to borrow on their line of credit.

Receivables purchase agreements. Under RPAs, small businesses receive funds in
exchange for a portion of the business's future receivables at an agreed upon
discount. In contrast, lending is a commitment to repay principal and interest
and/or fees. A small business customer who enters into an RPA commits to
delivering a percentage of its receivables through ACH or wire debits or by
splitting credit card receipts until all purchased receivables are delivered. We
offer RPAs in all 50 states and in Washington D.C. in the United States.

CSO programs. We currently operate a credit services organization or credit
access business ("CSO") program in Texas. Through our CSO program, we provide
services related to third-party lenders' installment consumer loan products by
acting as a credit services organization or credit access business on behalf of
consumers in accordance with applicable state laws. Services offered under our
CSO program include credit-related services such as arranging loans with
independent third-party lenders and assisting in the preparation of loan
applications and loan documents ("CSO loans"). When a consumer executes an
agreement with us under our CSO program, we agree, for a fee payable to us by
the consumer, to provide certain services, one of which is to guarantee the
consumer's obligation to repay the loan received by the consumer from the
third-party lender if the consumer fails to do so. For CSO loans, each lender is
responsible for providing the criteria by which the consumer's application is
underwritten and, if approved, determining the amount of the consumer loan. We,
in turn, are responsible for assessing whether or not we will guarantee such
loan. The guarantee represents an obligation to purchase the loan, which has
terms of up to six months, if it goes into default.

Bank program. We operate programs with certain banks to provide marketing
services and loan servicing for near-prime unsecured consumer installment loans
and, beginning in January 2021, line of credit accounts. Under the programs, we
receive marketing and servicing fees while the bank receives an origination fee.
The bank has the ability to sell and we have the option, but not the
requirement, to purchase the loans the bank originates and, in the case of line
of credit accounts, a participation interest in the receivables from draws on
those accounts. We do not guarantee the performance of the loans and line of
credit accounts originated by the bank. As part of the OnDeck business both
prior and subsequent to Enova's acquisition, OnDeck operates a program with a
separate bank to provide marketing services and loan servicing for small
business installment loans and line of credit accounts. Under the OnDeck
program, we receive marketing fees while the bank receives origination fees and
certain program fees. The bank has the ability to sell and we have the option,
but not the requirement, to purchase the installment loans
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the bank creates and, in the case of line of credit accounts, extensions under such line of credit accounts. We do not guarantee the performance of loans or lines of credit issued by the bank.

Money transfer business. Through the acquisition of Pangea, we operate a money
transfer platform that allows customers to send money from the United States to
Mexico, other Latin American countries and Asia. The customer pays us in U.S.
dollars, and we then make local currency available to the intended recipient of
the transfer in one of many termination countries. Our revenue model includes a
fee per transfer and an exchange rate spread. Our customers can access our
proprietary platform via the website, Android app, or iOS (Apple) app.

OUR MARKETS

We currently offer our services in the following countries:

United States. We began our online business in the United States in May 2004. As
of September 30, 2022, we provided services in all 50 states and Washington D.C.
We market our financing products under the names CashNetUSA at
www.cashnetusa.com, NetCredit at www.netcredit.com, OnDeck at www.ondeck.com,
Headway Capital at www.headwaycapital.com, The Business Backer at
www.businessbacker.com, and Pangea at www.pangeamoneytransfer.com.

Brazil. In June 2014we started our business in Brazil under the Simplic name on www.simplic.com.br, where we arrange installment loans for a third-party lender. We plan to continue to invest in our financial services program and expand it by Brazil.


Our internet websites and the information contained therein or connected thereto
are not intended to be incorporated by reference into this Quarterly Report on
Form 10-Q.

RECENT REGULATORY DEVELOPMENTS

Consumer Financial Protection Bureau (“CFPB”)


We received a Civil Investigative Demand ("CID") from the CFPB concerning
certain loan processing issues. We cooperated fully with the CFPB and provided
all requested data and information in response to the CID. We anticipate being
able to expeditiously complete the investigation as several of the issues were
self­disclosed and we have provided restitution to customers who may have been
negatively impacted. We received a second CID in April 2022 requesting
additional information. We have provided all requested information in response
to the CID.

On October 6, 2017, the CFPB issued its final rule entitled "Payday, Vehicle
Title, and Certain High-Cost Installment Loans" (the "Small Dollar Rule"), which
covers certain consumer loans that we offer. The Small Dollar Rule requires that
lenders who make short-term loans and longer-term loans with balloon payments
reasonably determine consumers' ability to repay the loans according to their
terms before issuing the loans. The Small Dollar Rule also introduces new
limitations on repayment processes for those lenders as well as lenders of other
longer-term loans with an annual percentage rate greater than 36 percent that
include an ACH authorization or similar payment provision. If a consumer has two
consecutive failed payment attempts, the lender must obtain the consumer's new
and specific authorization to make further withdrawals from the consumer's bank
account. For loans covered by the Small Dollar Rule, lenders must provide
certain notices to consumers before attempting a first payment withdrawal or an
unusual withdrawal and after two consecutive failed withdrawal attempts. On June
7, 2019, the CFPB issued a final rule to set the compliance date for the
mandatory underwriting provisions of the Small Dollar Rule to November 19, 2020.
On July 7, 2020, the CFPB issued a final rule rescinding the ability to repay
("ATR") provisions of the Small Dollar Rule along with related provisions, such
as the establishment of registered information systems for checking ATR and
reporting loan activity. The payment provisions of the Small Dollar Rule remain
in place, but remain stayed indefinitely by the United States Court of Appeals
for the Fifth Circuit, which is hearing an appeal from the plaintiff on a
constitutional challenge to the Small Dollar Rule. On October 14, 2021, the
Fifth Circuit ruled that the Small Dollar Rule will not take effect until 286
days after the Fifth Circuit rules on the appeal. On October 19, 2022, a
three-judge panel of the Fifth Circuit U.S. Circuit Court of Appeals ruled that
the funding structure of the CFPB is unconstitutional and vacated the Small
Dollar Rule. The CFPB may appeal the decision. If the Small Dollar Rule does
become effective in its current proposed form, we will need to make certain
changes to our payment processes and customer notifications in our U.S. consumer
lending business.

New Mexico HB 132

On February 15, 2022, the New Mexico Legislature passed HB 132. The bill imposes
a 36% rate cap on loans up to $10,000. Additionally, HB 132 provides for the
application of a predominant economic interest test for bank service
arrangements whereby a broker or servicer with a predominant economic interest
in a loan is considered to be the "true lender" for purposes of applying the 36%
rate cap. The New Mexico Governor signed the bill into law on March 1, 2022. The
law will take effect on January 1, 2023.
                                       24
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RESULTS OF OPERATIONS

Highlights

Our financial results for the three-month period ended September 30, 2022or the current quarter, are summarized below.

Consolidated total revenue increased $136.0 million, or 42.5%, to $456.2 million
in the current quarter compared to $320.2 million for the three months ended
September 30, 2021, or the prior year quarter.

Consolidated net sales were $294.2 million compared to $246.4 million during the quarter of the previous year.

Consolidated operating profit increases $12.3 millioni.e. 14.3%, to $98.5 million in the current quarter, compared to $86.2 million during the quarter of the previous year.

Consolidated net income was $51.7 million in the current quarter compared to
$51.5 million in the prior year quarter. Consolidated diluted income per share
was $1.57 in the current quarter compared to $1.36 in the prior year quarter.
                                       25
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Insight

The following tables reflect our results of operations for the periods indicated, both in dollars and as a percentage of total revenue (in thousands of dollars, except per share data):

                                           Three Months Ended September 30,          Nine Months Ended September 30,
                                              2022                2021                 2022                   2021
Revenue
Loans and finance receivables revenue      $   449,817       $       316,042     $       1,233,910       $       833,412
Other                                            6,383                 4,118                16,011                10,912
Total Revenue                                  456,200               320,160             1,249,921               844,324
Change in Fair Value                          (162,005 )             (73,778 )            (422,465 )            (100,443 )
Net Revenue                                    294,195               246,382               827,456               743,881
Operating Expenses
Marketing                                      101,278                79,726               286,000               163,548
Operations and technology                       45,953                37,966               128,945               108,628
General and administrative                      37,182                33,557               105,400               116,321
Depreciation and amortization                   11,270                 8,914                28,368                23,001
Total Operating Expenses                       195,683               160,163               548,713               411,498
Income from Operations                          98,512                86,219               278,743               332,383
Interest expense, net                          (30,924 )             (18,163 )             (78,357 )             (57,493 )
Foreign currency transaction gain (loss)           363                  (109 )                  70                  (383 )
Equity method investment (loss) income            (129 )                 529                 6,522                 2,558
Other nonoperating expenses                       (230 )                   -                (1,321 )              (1,128 )
Income before Income Taxes                      67,592                68,476               205,657               275,937
Provision for income taxes                      15,884                16,667                49,105                67,607
Net income before noncontrolling
interest                                        51,708                51,809               156,552               208,330
Less: Net income attributable to
noncontrolling interest                              -                   261                     -                   685
Net income attributable to Enova
International, Inc.                        $    51,708       $        

$51,548,156,552 $207,645
Earnings per common share – diluted $1.57 $$1.36

            4.64       $          5.48

Revenue

Loans and finance receivables revenue             98.6 %                98.7 %                98.7 %                98.7 %
Other                                              1.4                   1.3                   1.3                   1.3
Total Revenue                                    100.0                 100.0                 100.0                 100.0
Change in Fair Value                             (35.5 )               (23.0 )               (33.8 )               (11.9 )
Net Revenue                                       64.5                  77.0                  66.2                  88.1
Operating Expenses
Marketing                                         22.2                  24.9                  22.9                  19.4
Operations and technology                         10.1                  11.9                  10.3                  12.8
General and administrative                         8.1                  10.5                   8.4                  13.8
Depreciation and amortization                      2.5                   2.8                   2.3                   2.7
Total Operating Expenses                          42.9                  50.1                  43.9                  48.7
Income from Operations                            21.6                  26.9                  22.3                  39.4
Interest expense, net                             (6.8 )                (5.7 )                (6.3 )                (6.8 )
Foreign currency transaction loss                  0.1                     -                     -                     -
Equity method investment income                      -                   0.2                   0.5                   0.3
Other nonoperating expenses                       (0.1 )                   -                  (0.1 )                (0.2 )
Income before Income Taxes                        14.8                  21.4                  16.4                  32.7
Provision for income taxes                         3.5                   5.2                   3.9                   8.0
Net income before noncontrolling
interest                                          11.3                  16.2                  12.5                  24.7
Less: Net income attributable to
noncontrolling interest                              -                   0.1                     -                   0.1
Net income attributable to Enova
International, Inc.                               11.3 %                16.1 %                12.5 %                24.6 %


Valuation of loans and financial receivables


The COVID-19 pandemic severely impacted global economic conditions, resulting in
substantial volatility in the financial markets, increased unemployment, and
operational challenges resulting from measures that governments have imposed to
control its spread. We actively worked with our customers to understand their
financial situations, waive late fees, offer a variety of repayment options to
increase flexibility and reduce or defer payments for impacted customers. We
took measures to adjust our underwriting procedures, which reduced exposure to
more heavily impacted consumers and businesses. Certain of these measures eased
since the height of the pandemic, with improvement of economic conditions and
our outlook.
                                       26
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From a loan valuation perspective, at the onset of the COVID-19 pandemic, we
deemed it appropriate to increase the discount rates used in our
internally-developed valuation models, thereby lowering loan fair values, to
capture the increase in potential volatility in expected cash flows due to the
unprecedented nature of the pandemic and governmental response. These rates
remained consistent for the remainder of 2020. Over the course of 2021, we noted
a tightening of credit spreads in observable pricing in the market; as such, we
reduced the discount rates used in our valuations. As of December 31, 2021, our
discount rates had generally returned to the levels utilized immediately prior
to the pandemic. As of March 31, 2022, June 30, 2022 and September 30, 2022, we
increased our discount rates based primarily on movements in the market during
each period. We believe the adjustments to our discount rates to be responsive
to changes in the market and representative of what a market participant would
use.

After seeing increases in delinquency and charge-offs early in the pandemic, we
experienced significant improvements to these metrics over the remainder of 2020
and into 2021. The U.S. government provided multiple rounds of stimulus
assistance to taxpayers and businesses. Positive COVID-19 test counts in the
U.S. generally decreased across the first half of 2021 although have spiked at
numerous times in the past year as different variants escalate and abate. In
2022, views in the marketplace on the economy and its near-term prospects remain
mixed with concerns on employment, inflation, and other macroeconomic trends. In
certain situations, management concluded that the probability of future
charge-offs was higher than what we had experienced in the past and, therefore,
increased anticipated charge-offs in our fair value models. We continue to
utilize this approach and have adjusted charge-off expectations where
appropriate. As of September 30, 2022, we deemed the resulting fair value to be
an appropriate market-based exit price that considers current market conditions.

NON-GAAP FINANCIAL MEASURES


In addition to the financial information prepared in conformity with generally
accepted accounting principles ("GAAP"), we provide historical non-GAAP
financial information. We believe that presentation of non-GAAP financial
information is meaningful and useful in understanding the activities and
business metrics of our operations. We believe that these non-GAAP financial
measures reflect an additional way of viewing aspects of our business that, when
viewed with our GAAP results, provide a more complete understanding of factors
and trends affecting our business. Readers should consider the information in
addition to, but not instead of or superior to, our consolidated financial
statements prepared in accordance with GAAP. This non-GAAP financial information
may be determined or calculated differently by other companies, limiting the
usefulness of those measures for comparative purposes.

Adjusted earnings measures


In addition to reporting financial results in accordance with GAAP, we have
provided adjusted earnings and adjusted earnings per share, or, collectively,
the Adjusted Earnings Measures, which are non-GAAP measures. We believe that the
presentation of these measures provides investors with greater transparency and
facilitates comparison of operating results across a broad spectrum of companies
with varying capital structures, compensation strategies, derivative instruments
and amortization methods, which provides a more complete understanding of our
financial performance, competitive position and prospects for the future. We
also believe that investors regularly rely on non-GAAP financial measures, such
as the Adjusted Earnings Measures, to assess operating performance and that such
measures may highlight trends in our business that may not otherwise be apparent
when relying on financial measures calculated in accordance with GAAP. In
addition, we believe that the adjustments shown below are useful to investors in
order to allow them to compare our financial results during the periods shown
without the effect of each of these income or expense items.
                                       27
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The following table provides reconciliations of net earnings and diluted earnings per share calculated in accordance with GAAP to adjusted earnings measures (in thousands, except per share data):

                                               Three Months Ended           Nine Months Ended
                                                 September 30,                September 30,
                                               2022          2021          2022          2021
Net income                                  $   51,708     $  51,548     $ 156,552     $ 207,645
Adjustments:
Transaction-related costs(a)                         -             -             -         1,424
Lease termination and cease-use gain(b)              -          (113 )           -          (113 )
Equity method investment loss (income)(c)          129             -        (6,194 )           -
Other nonoperating expenses(d)                     230             -         1,321         1,128
Intangible asset amortization                    2,014         2,013         6,041         4,848
Stock-based compensation expense                 5,457         5,018        15,957        16,072
Foreign currency transaction (gain) loss          (363 )         102           (70 )         373
Cumulative tax effect of adjustments            (1,871 )      (1,581 )      (3,174 )      (5,843 )
Adjusted earnings                           $   57,304     $  56,987     $ 170,433     $ 225,534

Diluted earnings per share                  $     1.57     $    1.36     $    4.64     $    5.48
Adjustments:
Transaction-related costs                            -             -             -          0.04
Lease termination and cease-use gain                 -             -             -             -
Equity method investment income                      -             -         (0.18 )           -
Other nonoperating expenses                       0.01             -          0.04          0.03
Intangible asset amortization                     0.06          0.05          0.18          0.13
Stock-based compensation expense                  0.17          0.13          0.47          0.42
Foreign currency transaction (gain) loss         (0.01 )           -             -          0.01
Cumulative tax effect of adjustments             (0.06 )       (0.04 )       (0.10 )       (0.16 )
Adjusted earnings per share                 $     1.74     $    1.50     $    5.05     $    5.95




(a) In the first quarter of 2021, we incurred expenses totaling $1.4 million
($1.1 million net of tax) related to acquisitions and a divestiture of a
subsidiary.
(b) In the third quarter of 2021, we recorded a gain of $0.1 million ($0.1
million net of tax) related to the exit of leased office space.
(c) In the second quarter of 2022, we recorded equity method investment income
of $6.3 million ($3.6 million net of tax) that was comprised primarily of an
$11.0 million gain generated on Linear's sale of its operating company,
partially offset by a $4.4 million loss on the sale of OnDeck Canada.
(d) In the third quarter of 2022, second quarter of 2022 and second quarter of
2021, we recorded other nonoperating expenses of $0.2 million ($0.2 million net
of tax), $1.1 million ($0.8 million net of tax) and $0.8 million ($0.6 million
net of tax), respectively, related to incomplete transactions. In the first
quarter of 2021, we recorded other nonoperating expenses of $0.4 million ($0.3
million net of tax) related to the repurchase of securitization notes.

Adjusted EBITDA


The table below shows Adjusted EBITDA, which is a non-GAAP measure that we
define as earnings excluding depreciation, amortization, interest, foreign
currency transaction gains or losses, taxes and stock-based compensation
expense. We believe Adjusted EBITDA is used by investors to analyze operating
performance and evaluate our ability to incur and service debt and our capacity
for making capital expenditures. Adjusted EBITDA is also useful to investors to
help assess our estimated enterprise value. In addition, we believe that the
adjustments for transaction-related costs, lease termination and cease-use loss
(gain), equity method investment income and other nonoperating expenses shown
below are useful to investors in order to allow them to compare our financial
results during the
                                       28
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periods indicated without the effect of income or expense items. The calculation of Adjusted EBITDA, as presented below, may differ from the calculation of similarly titled measures provided by other companies (in thousands):

                                             Three Months Ended            Nine Months Ended
                                                September 30,                September 30,
                                             2022          2021           2022           2021
Net income                                 $  51,708     $  51,548     $   156,552     $ 207,645
Depreciation and amortization
expenses(e)                                   11,270         8,912          28,368        22,990
Interest expense, net(e)                      30,924        17,966          78,357        57,013
Foreign currency transaction (gain)
loss(e)                                         (363 )         102             (70 )         373
Provision for income taxes                    15,884        16,667          49,105        67,607
Stock-based compensation expense               5,457         5,018          15,957        16,072
Adjustment:
Transaction-related costs(a)                       -             -               -         1,424
Lease termination and cease-use gain(b)            -          (113 )             -          (113 )
Equity method investment loss
(income)(c)                                      129          (529 )        (6,522 )      (2,558 )
Other nonoperating expenses(d)                   230             -           1,321         1,128
Adjusted EBITDA                            $ 115,239     $  99,571     $   

323,068 $371,581


Adjusted EBITDA margin calculated as
follows:
Total Revenue                              $ 456,200     $ 320,160     $ 1,249,921     $ 844,324
Adjusted EBITDA                              115,239        99,571         323,068       371,581
Adjusted EBITDA as a percentage of total
revenue                                         25.3 %        31.1 %          25.8 %        44.0 %




(a) In the first quarter of 2021, we incurred expenses totaling $1.4 million
related to acquisitions and a divestiture of a subsidiary.
(b) In the third quarter of 2021, we recorded a gain of $0.1 million related to
the exit of leased office space.
(c) In the second quarter of 2022, we recorded equity method investment income
of $6.3 million that was comprised primarily of an $11.0 million gain generated
on Linear's sale of its operating company, partially offset by a $4.4 million
loss on the sale of OnDeck Canada.
(d) In the third quarter of 2022, second quarter of 2022 and second quarter of
2021, we recorded other nonoperating expenses of $0.2 million, $1.1 million and
$0.8 million, respectively, related to incomplete transactions. In the first
quarter of 2021, we recorded other nonoperating expenses of $0.4 million related
to the repurchase of securitization notes.
(e) Excludes amounts attributable to noncontrolling interests.

Combined measures of loans and financial claims


In addition to reporting loans and finance receivables balance information in
accordance with GAAP (see Note 3 in the Notes to Consolidated Financial
Statements included in this report), we have provided metrics on a combined
basis. The Combined Loans and Finance Receivables Measures are non-GAAP measures
that include both loans and RPAs we own or have purchased and loans we
guarantee, which are either GAAP items or disclosures required by GAAP. See
"-Loan and Finance Receivable Balances" and "-Credit Performance of Loans and
Finance Receivables" below for reconciliations between Company owned and
purchased loans and finance receivables, gross, change in fair value and
charge-offs (net of recoveries) calculated in accordance with GAAP to the
Combined Loans and Finance Receivables Measures.

We believe these non-GAAP measures provide investors with important information
needed to evaluate the magnitude of potential receivable losses and the
opportunity for revenue performance of the loans and finance receivable
portfolio on an aggregate basis. We also believe that the comparison of the
aggregate amounts from period to period is more meaningful than comparing only
the amounts reflected on our consolidated balance sheet since both revenue and
cost of revenue are impacted by the aggregate amount of receivables we own and
those we guarantee as reflected in our consolidated financial statements.

THREE MONTHS ENDED SEPTEMBER 30, 2022 COMPARED TO THE THREE MONTHS ENDED SEPTEMBER 30, 2021


Revenue and Net Revenue

Revenue increased $136.0 million, or 42.5%, to $456.2 million for the current
quarter as compared to $320.2 million for the prior year quarter. The increase
was driven by a 71.7% increase in revenue from our small business portfolio and
a 28.6% increase in revenue from our consumer portfolio as higher levels of
originations in 2021 and into 2022 have led to higher loan balances for both
portfolios.

Net revenue for the current quarter was $294.2 million compared to $246.4
million for the prior year quarter. Our consolidated net revenue margin was
64.5% for the current quarter compared to 77.0% for the prior year quarter. The
net revenue margin in the prior year quarter was elevated due primarily to lower
delinquency rates and lower than expected charge-offs as a result of portfolio
seasoning
                                       29
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and lower origins. With creations increasing in the second half of 2021 and across September 30, 2022the current quarter net revenue margin was in a more normalized range.


The following table sets forth the components of revenue and net revenue,
separated by product for the current quarter and the prior year quarter (in
thousands):

                                           Three Months Ended September 30,
                                              2022                2021           $ Change       % Change
Revenue by product:
Consumer loans and finance receivables
revenue                                    $   277,096       $       215,432     $  61,664           28.6 %
Small business loans and finance
receivables revenue                            172,721               100,610        72,111           71.7
Total loans and finance receivables
revenue                                        449,817               316,042       133,775           42.3
Other                                            6,383                 4,118         2,265           55.0
Total revenue                                  456,200               320,160       136,040           42.5
Change in fair value                          (162,005 )             (73,778 )     (88,227 )        119.6
Net revenue                                $   294,195       $       246,382     $  47,813           19.4 %

Revenue by product (% to total):
Consumer loans and finance receivables
revenue                                           60.7 %                67.3 %
Small business loans and finance
receivables revenue                               37.9                  

31.4

Total loans and finance receivables
revenue                                           98.6                  98.7
Other                                              1.4                   1.3
Total revenue                                    100.0                 100.0
Change in fair value                             (35.5 )               (23.0 )
Net revenue                                       64.5 %                77.0 %

Loan and financing balances receivable


The fair value of our loan and finance receivable portfolio in our consolidated
financial statements was $2,765.1 million and $1,635.3 million as of September
30, 2022 and 2021, respectively. The outstanding principal balance of our loan
and finance receivables portfolio was $2,552.6 million and $1,586.4 million as
of September 30, 2022 and 2021, respectively. The fair value of the combined
loan and finance receivables portfolio includes $16.1 million and $16.9 million
with an outstanding principal balance of $11.8 million and $11.4 million of
consumer loan balances that are guaranteed by us but not owned by us, which are
not included in our consolidated financial statements as of September 30, 2022
and 2021, respectively.

Our small business portfolio of loans and finance receivables increased to 61.4%
of our combined loan and finance receivable portfolio at fair value as of
September 30, 2022, compared to 55.2% as of September 30, 2021 due primarily to
more accelerated growth in the small business portfolio. The consumer portfolio
balance decreased to 38.6% of our combined loan and finance receivable portfolio
balance at fair value as of September 30, 2022, compared to 44.8% as of
September 30, 2021. See "-Non-GAAP Disclosure-Combined Loans and Finance
Receivables Measures" above for additional information related to combined loans
and finance receivables.

The following tables summarize the outstanding balances of loans and financial receivables as of September 30, 2022 and 2021 (in thousands):


                                              As of September 30, 2022                         As of September 30, 2021
                                                     Guaranteed                                       Guaranteed
                                      Company          by the                          Company          by the
                                     Owned(a)        Company(a)       Combined        Owned(a)        Company(a)      Combined(b)
Consumer loans and finance
receivables
Principal                           $   972,320     $     11,843     $   984,163     $   709,781     $     11,354     $    721,135
Fair value                            1,056,205           16,144       1,072,349         723,553           16,921          740,474
Fair value as a % of principal            108.6 %          136.3 %         109.0 %         101.9 %          149.0 %          102.7 %
Small business loans and finance
receivables
Principal                           $ 1,580,289     $          -     $ 1,580,289     $   876,668     $          -     $    876,668
Fair value                            1,708,918                -       1,708,918         911,729                -          911,729
Fair value as a % of principal            108.1 %              - %         108.1 %         104.0 %              - %          104.0 %
Total loans and finance
receivables
Principal                           $ 2,552,609     $     11,843     $ 2,564,452     $ 1,586,449     $     11,354     $  1,597,803
Fair value                            2,765,123           16,144       2,781,267       1,635,282           16,921        1,652,203
Fair value as a % of principal            108.3 %          136.3 %         108.5 %         103.1 %          149.0 %          103.4 %




(a) GAAP measure. The loans and finance receivables balances guaranteed by us
relate to loans originated by third-party lenders through the CSO programs that
we have not yet purchased and, therefore, are not included in our consolidated
financial statements.
                                       30
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To September 30, 2022 and 2021, the ratio of fair value as a percentage of principal was 108.3% and 103.1%, respectively, on loans and financial receivables held by the company and 108.5% and 103.4%, respectively , on loans and financial receivables combined. These ratios increased from the prior year primarily due to an improved credit outlook on most products and improved delinquency rates for certain consumer products, partially offset by higher delinquency rates for certain consumer and small business products.

Average amount outstanding per loan and financing receivable


The average amount outstanding per loan and finance receivable is calculated as
the total combined loans and finance receivables, gross balance at the end of
the period divided by the total number of combined loans and finance receivables
outstanding at the end of the period. The following table shows the average
amount outstanding per loan and finance receivable by product at September 30,
2022 and 2021:

                                                             As of September 30,
                                                            2022              2021
Average amount outstanding per loan and finance
receivable(a)
Consumer loans and finance receivables(b)               $       2,156     $ 

1,812

Small business loans and finance receivables                   37,670       

33,581

Total loans and finance receivables(b)                  $       4,980     $      3,633




(a) The disclosure regarding the average amount per loan and finance receivable
is statistical data that is not included in our consolidated financial
statements.
(b) Includes loans guaranteed by us, which represent loans originated by
third-party lenders through the CSO programs that we have not yet purchased and,
therefore, are not included in our consolidated financial statements.

The average outstanding amount per loan and financial receivable rose to
$4,980 of $3,633 in the current quarter compared to the prior year quarter, primarily due to an increase in the mix of loans and financial receivables held by small businesses in our portfolio, which are on average larger than our portfolio of consumers.

Average amount of loans and financing receivable


The average loan and finance receivable origination amount is calculated as the
total amount of combined loans and finance receivables originated, renewed and
purchased for the period divided by the total number of combined loans and
finance receivables originated, renewed and purchased for the period. The
following table shows the average loan and finance receivable origination amount
by product for the current quarter compared to the prior year quarter:

                                                              Three Months Ended
                                                                 September 30,
                                                               2022          2021

Average amount at origin of loans and financial receivables(a) Consumer loans and financial receivables(b)(c)

                $      717     $    664
Small business loans and finance receivables(c)                 17,849      

15,610

Total loans and finance receivables(b)                      $    2,014     $  1,372




(a) The disclosure regarding the average loan origination amount is statistical
data that is not included in our consolidated financial statements.
(b) Includes loans guaranteed by us, which represent loans originated by
third-party lenders through the CSO programs that we have not yet purchased and,
therefore, are not included in our consolidated financial statements.
(c) For line of credit accounts the average represents the average amount of
each incremental draw.

The average loan and finance receivable origination amount increased to $2,014
from $1,372 during the current quarter compared to the prior year quarter, due
primarily to an increase in the mix of higher dollar amount loans and finance
receivables to small businesses.

Credit performance of financial loans and receivables


We monitor the performance of our loans and finance receivables. Internal
factors such as portfolio composition (e.g., interest rate, loan term, geography
information, customer mix, credit quality) and performance (e.g., delinquency,
loss trends, prepayment rates) are reviewed on a regular basis at various levels
(e.g., product, vintage). We also weigh the impact of relevant, internal
business decisions on the portfolio. External factors such as macroeconomic
trends, financial market liquidity expectations, competitive landscape and
legal/regulatory requirements are also reviewed on a regular basis.
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The payment status of a customer, including the degree of any delinquency, is a
significant factor in determining estimated charge-offs in the cash flow models
that we use to determine fair value. The following table shows payment status on
outstanding principal, interest and fees as of the end of each of the last five
quarters (in thousands):

                                                 2021                                    2022
                                         Third          Fourth           First          Second           Third
                                        Quarter         Quarter         Quarter         Quarter         Quarter
Ending combined loans and finance
receivables, including principal
and accrued fees/interest
outstanding:
Company owned                         $ 1,650,771     $ 1,944,263     $ 2,169,140     $ 2,377,514     $ 2,630,537
Guaranteed by the Company(a)               13,239          13,750          11,858          13,997          14,330
Ending combined loan and finance
receivables balance(b)                $ 1,664,010     $ 1,958,013     $ 2,180,998     $ 2,391,511     $ 2,644,867
> 30 days delinquent                       90,782         103,213         113,798         121,459         147,688
> 30 days delinquency rate                    5.5 %           5.3 %           5.2 %           5.1 %           5.6 %




(a) Represents loans originated by third-party lenders through the CSO programs
that we have not yet purchased, which are not included in our consolidated
balance sheets.
(b) Non-GAAP measure.

Consumer loans and financial receivables


The following table includes financial information for our consumer loans and
finance receivables. Delinquency metrics include principal, interest and fees,
and only amounts that are past due (in thousands):

                                                2021                                  2022
                                        Third         Fourth         First          Second           Third
                                       Quarter       Quarter        Quarter         Quarter         Quarter
Consumer loans and finance
receivables:
Consumer combined loan and finance
receivable principal balance:
Company owned                         $ 709,781     $  867,751     $  888,657     $   936,601     $   972,320
Guaranteed by the Company(a)             11,354         11,790         10,027          11,873          11,843
Total combined loan and finance
receivable principal balance(b)       $ 721,135     $  879,541     $  898,684     $   948,474     $   984,163
Consumer combined loan and finance
receivable fair value balance:
Company owned                         $ 723,553     $  890,144     $  934,351     $   989,128     $ 1,056,205
Guaranteed by the Company(a)             16,921         18,813         14,433          17,860          16,144
Ending combined loan and finance
receivable fair value balance(b)      $ 740,474     $  908,957     $  948,784     $ 1,006,988     $ 1,072,349
Fair value as a % of
principal(b)(c)                           102.7 %        103.3 %        105.6 %         106.2 %         109.0 %
Consumer combined loan and finance
receivable balance, including
principal and accrued fees/interest
outstanding:
Company owned                         $ 768,964     $  927,673     $  951,560     $ 1,004,847     $ 1,039,792
Guaranteed by the Company(a)             13,239         13,750         11,858          13,997          14,330
Ending combined loan and finance
receivable balance(b)                 $ 782,203     $  941,423     $  963,418     $ 1,018,844     $ 1,054,122
Average consumer combined loan and
finance receivable balance,
including principal and accrued
fees/interest outstanding:
Company owned(d)                      $ 702,818     $  836,147     $  953,108     $   966,816     $ 1,027,100
Guaranteed by the Company(a)(d)          11,366         13,212         12,960          12,591          14,421
Average combined loan and finance
receivable balance(b)(d)              $ 714,184     $  849,359     $  

966 068 $979,407 $1,041,521


Revenue                               $ 215,432     $  243,570     $  248,547     $   253,043     $   277,096
Change in fair value                    (97,061 )     (104,715 )     (116,767 )      (133,078 )      (135,646 )
Net revenue                             118,371        138,855        131,780         119,965         141,450
Net revenue margin                         54.9 %         57.0 %         

53.0% 47.4% 51.0%

Delinquencies:

> 30 days delinquent                  $  45,804     $   59,312     $   70,480     $    72,300     $    77,258
> 30 days delinquent as a % of
combined loan and finance
receivable balance(b)(c)                    5.9 %          6.3 %          7.3 %           7.1 %           7.3 %

Charge-offs:
Charge-offs (net of recoveries)       $  57,836     $  112,582     $  137,224     $   134,524     $   167,762
Charge-offs (net of recoveries) as
a % of average combined loan and
finance receivable balance(b)(d)            8.1 %         13.3 %         14.2 %          13.7 %          16.1 %




(a) Represents loans originated by third-party lenders through the CSO programs
that we have not yet purchased, which are not included in our consolidated
balance sheets.
(b) Non-GAAP measure.
(c) Determined using period-end balances.
(d) The average combined loan and finance receivable balance is the average of
the month-end balances during the period.
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The ending balance, including principal and accrued fees/interest outstanding,
of combined consumer loans and finance receivables at September 30, 2022
increased 34.8% to $1,054.1 million compared to $782.2 million at September 30,
2021, due primarily to the acceleration in originations beginning approximately
mid-2021, following the strategic reduction in originations at the onset of the
COVID-19 pandemic to mitigate risks associated with the pandemic.

The percentage of loans greater than 30 days delinquent increased to 7.3% at
September 30, 2022, compared to 5.9% at September 30, 2021. The increase was
driven primarily by growth in originations in the current year, particularly to
new customers, which typically default at a higher percentage than returning
customers.

Charge-offs (net of recoveries) as a percentage of average combined loan balance
increased to 16.1% for the current quarter, compared to 8.1% for the prior year
quarter, driven primarily by growth in originations, particularly to new
customers, which typically default at a higher percentage than returning
customers. In the prior year quarter, this charge-off rate was lower due
primarily to our having a more seasoned and lower risk portfolio remaining as
originations since the onset of the COVID-19 pandemic had been significantly
lower and the majority of higher risk loans to new customers originated in prior
quarters had been charged off. The charge-off rate in the current quarter is
more consistent with rates experienced prior to the COVID-19 pandemic.

The ratio of fair value as a percentage of principal on consumer loans and
finance receivables was 109.0% at September 30, 2022, compared to 102.7% at
September 30, 2021 and 106.2% at June 30, 2022. The increase from June 30, 2022
was primarily driven by an improvement in early-stage delinquencies. Refer also
to "Results of Operations-COVID-19" in "Management's Discussion and Analysis of
Financial Condition and Results of Operations" for additional discussion on loan
valuation.

Small Business Loans and Financial Claims


The following table includes financial information for our small business loans
and finance receivables. Delinquency metrics include principal, interest, and
fees, and only amounts that are past due (in thousands):

                                                2021                                   2022
                                        Third         Fourth           First          Second           Third
                                       Quarter        Quarter         Quarter         Quarter         Quarter
Small business loans and finance
receivables:
Total loan and finance receivable
principal balance                     $ 876,668     $ 1,010,675     $ 1,210,389     $ 1,364,055     $ 1,580,289
Ending loan and finance receivable
fair value balance                      911,729       1,074,546       

1,297,533 1,471,723 1,708,918 Fair value as % of principal(a) 104.0% 106.3% 107.2% 107.9% 108.1%


Ending loan and finance receivable
balance, including principal and
accrued fees/interest outstanding     $ 881,807     $ 1,016,590     $ 1,217,580     $ 1,372,667     $ 1,590,745

Average loan and finance receivable
balance(b)                            $ 837,606     $   956,110     $ 1,122,609     $ 1,288,384     $ 1,488,029

Revenue                               $ 100,610     $   115,063     $   132,594     $   149,909     $   172,721
Change in fair value                     24,515          22,804           1,138          (8,764 )       (24,662 )
Net revenue                             125,125         137,867         133,732         141,145         148,059
Net revenue margin                        124.4 %         119.8 %         

100.9% 94.2% 85.7%

Delinquencies:

> 30 days delinquent                  $  44,978     $    43,901     $    43,318     $    49,159     $    70,430
> 30 days delinquent as a % of loan
balance(a)                                  5.1 %           4.3 %           3.6 %           3.6 %           4.4 %

Dump :

Charge-offs (net of recoveries)       $   7,060     $     7,677     $    20,860     $    27,867     $    43,778
Charge-offs (net of recoveries) as
a % of average loan and finance
receivable balance(b)                       0.8 %           0.8 %           1.9 %           2.2 %           2.9 %



(a) Determined from end of period balances. (b) The average balance of loans and financial receivables corresponds to the average of month-end balances during the period.


The ending balance, including principal and accrued fees/interest outstanding,
of small business loans and finance receivables at September 30, 2022 increased
80.4% to $1,590.7 million compared to $881.8 million at September 30, 2021, due
primarily to the continued impact of strong originations.

The percentage of loans greater than 30 days delinquent was 4.4% at September
30, 2022, compared to 5.1% at September 30, 2021. Delinquency has improved in
all of our small business portfolios, as we have actively worked with our
customers to understand their
                                       33
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financial situations, offering a variety of repayment options to increase flexibility, and reducing or deferring payments for affected customers.


Charge-offs (net of recoveries) as a percentage of average loan balance
increased to 2.9% for the current quarter, compared to 0.8% in the prior year
quarter, due primarily to growth in originations, particularly to new customers,
which typically default at a higher percentage than returning customers. In the
prior year quarter, this charge-off rate was lower due primarily to our having a
more seasoned portfolio remaining as originations since the onset of the
COVID-19 pandemic had been significantly lower and the majority of higher risk
loans to new customers originated in prior quarters had been charged off.

The ratio of fair value as a percentage of principal on small business loans and
finance receivables was 108.1% at September 30, 2022, compared to 104.0% at
September 30, 2021 and 107.9% at June 30, 2022. The increase from June 30, 2022
was nominal as credit metrics remained fairly consistent.

Total operating expenses

Total expenses increased $35.5 millioni.e. 22.2%, at $195.7 million in the current quarter, compared to $160.2 million during the quarter of the previous year.


Marketing expense increased to $101.3 million in the current quarter compared to
$79.7 million in the prior year quarter due primarily to our efforts to capture
increasing market demand for loan products in the current quarter. Certain
marketing costs, such as commissions paid to third-party lead providers, are
variable and increase as originations increase.

Operating and technology expenses increased to $45.9 million in the current quarter compared to $38.0 million in the prior year quarter, primarily due to higher variable costs, particularly personnel and underwriting, due to increased loan originations and loan book size.


General and administrative expense increased to $37.2 million in the current
quarter compared to $33.6 million in the prior year quarter, due primarily to
higher personnel costs.

Depreciation and amortization expense increased $2.4 million or 26.4% compared
to the prior year quarter driven primarily by $3.6 million in impairment charges
recorded in the current quarter on internal-use software that was retired.

Non-operating items


Interest expense, net increased $12.8 million, or 70.3%, to $30.9 million in the
current quarter compared to $18.1 million in the prior year quarter. The
increase was due primarily to an increase in the average amount of debt
outstanding, which increased $867.6 million to $1,933.0 million during the
current quarter from $1,065.4 million during the prior year quarter, partially
offset by a decrease in the weighted average interest rate on our outstanding
debt to 6.46% during the current quarter from 6.65% during the prior year
quarter.

Provision for income taxes


The effective tax rate of 23.5% in the current quarter was lower than the 24.3%
rate recorded in the prior year quarter due primarily to the revaluation of the
deferred tax liability related to reductions in in state apportionment in
separate company filing states, partially offset by higher nondeductible
executive compensation.

As of September 30, 2022, the balance of unrecognized tax benefits was $73.0
million which is included in "Accounts payable and accrued expenses" on the
consolidated balance sheet, $11.1 million of which, if recognized, would
favorably affect the effective tax rate in the period of recognition. We had
$35.3 million and $44.1 million of unrecognized tax benefits as of September 30,
2021 and December 31, 2021, respectively. We believe that we have adequately
accounted for any material tax uncertainties in our existing reserves for all
open tax years.

Our U.S. tax returns are subject to examination by federal and state taxing
authorities. The statute of limitations related to our consolidated Federal
income tax returns is closed for all tax years up to and including 2017.
However, the 2014 tax year is still open to the extent of the net operating loss
that was carried back from the 2019 tax return. The years open to examination by
state, local and foreign government authorities vary by jurisdiction, but the
statute of limitation is generally three years from the date the tax return is
filed. For jurisdictions that have generated net operating losses, carryovers
may be subject to the statute of limitations applicable for the year those
carryovers are utilized. In these cases, the period for which the losses may be
adjusted will extend to conform with the statute of limitations for the year in
which the losses are utilized. In most circumstances, this is expected to
increase the length of time that the applicable taxing authority may examine the
carryovers by one year or longer, in limited cases.
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Net revenue


Net income increased $0.2 million, or 0.3%, to $51.7 million during the current
quarter compared to $51.5 million during the prior year quarter. The increase
was due primarily to higher net revenue resulting from growth in the size of the
business, which was mostly offset by higher associated costs, particularly
marketing and interest.

NINE MONTHS ENDED SEPTEMBER 30, 2022 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30, 2021


Revenue and Net Revenue

Revenue increased $405.6 million, or 48.0%, to $1,249.9 million for the
nine-month period ended September 30, 2022, or current nine-month period, as
compared to $844.3 million for the nine-month period ended September 30, 2021,
or prior year nine-month period. The increase was driven by a 73.9% increase in
revenue from our small business portfolio and a 36.2% increase in revenue from
our consumer portfolio as higher levels of originations in 2021 and into 2022
have led to higher loan balances for both portfolios.

Net revenue for the current nine-month period was $827.4 million compared to
$743.9 million for the prior year nine-month period. Our consolidated net
revenue margin was 66.2% for the current nine-month period compared to 88.1% for
the prior year nine-month period. The net revenue margin in the prior year
nine-month period was elevated due primarily to lower delinquency rates and
lower than expected charge-offs as a result of portfolio seasoning and lower
originations. With originations having increased across the second half of 2021
and through September 30, 2022, the net revenue margin in the current nine-month
period was in a more normalized range.

The following table shows the components of revenue and net revenue, separated by product for the current nine-month period and the prior year nine-month period (in thousands):

                                               Nine Months Ended September 30,
                                                 2022                   2021            $ Change       % Change
Revenue by product:
Consumer loans and finance receivables
revenue                                    $         778,686       $       571,681     $  207,005           36.2 %
Small business loans and finance
receivables revenue                                  455,224               261,731        193,493           73.9
Total loans and finance receivables
revenue                                            1,233,910               833,412        400,498           48.1
Other                                                 16,011                10,912          5,099           46.7
Total revenue                                      1,249,921               844,324        405,597           48.0
Change in fair value                                (422,465 )            (100,443 )     (322,022 )        320.6
Net revenue                                $         827,456       $       743,881     $   83,575           11.2 %

Revenue by product (% to total):
Consumer loans and finance receivables
revenue                                                 62.3 %                67.7 %
Small business loans and finance
receivables revenue                                     36.4                

31.0

Total loans and finance receivables
revenue                                                 98.7                  98.7
Other                                                    1.3                   1.3
Total revenue                                          100.0                 100.0
Change in fair value                                   (33.8 )               (11.9 )
Net revenue                                             66.2 %                88.1 %


Average Loan Origination

The average loan and finance receivable origination amount is calculated as the
total amount of combined loans and finance receivables originated, renewed and
purchased for the period divided by the total number of combined loans and
finance receivables originated, renewed and purchased for the period. The
following table shows the average loan and finance receivable origination amount
by product for the current nine-month period compared to the prior year
nine-month period:

                                                              Nine Months Ended
                                                                September 30,
                                                              2022          2021

Average amount at origin of loans and financial receivables(a) Consumer loans and financial receivables(b)(c)

                $     677     $ 

602

Small business loans and finance receivables(c)                16,983       

15,236

Total loans and finance receivables(b)                      $   1,773     $  1,358




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(a) The disclosure regarding the average loan origination amount is statistical
data that is not included in our consolidated financial statements.
(b) Includes loans guaranteed by us, which represent loans originated by
third-party lenders through the CSO programs that we have not yet purchased and,
therefore, are not included in our consolidated financial statements.
(c) Represents the average amount of each incremental draw on line of credit
accounts.

The average loan origination amount increased to $1,773 from $1,358 during the
current nine-month period compared to the prior year nine-month period, due
primarily to the gradual easing of restrictions on loan amounts as risks from
the COVID-19 pandemic abated as well as an increase in the mix of higher dollar
amount loans and finance receivables to small businesses.

Total expenses

Total expenses increased $137.2 millioni.e. 33.3%, at $548.7 million in the current nine-month period, compared to $411.5 million during the nine-month period of the previous year.


Marketing expense increased to $286.0 million in the current nine-month period
compared to $163.6 million in the prior year nine-month period. The increase was
due primarily to our efforts to capture increasing market demand for loan
products in the current nine-month period. The prior year nine-month period was
abnormally low due to our strategic actions to mitigate risks associated with
the COVID-19 pandemic. Certain marketing costs, such as commissions paid to
third-party lead providers, are variable and increase as originations increase.

Operating and technology expenses increased to $128.9 million in the current nine-month period compared to $108.6 million in the nine-month period of the prior year, mainly due to higher variable costs, in particular personnel and underwriting, due to the increase in originations and the size of the loan portfolio.


General and administrative expense decreased $10.9 million, or 9.4%, to $105.4
million in the current nine-month period compared to $116.3 million in the prior
year nine-month period, due primarily to synergies achieved following the
October 2020 acquisition of OnDeck.

Depreciation and amortization expense increased $5.4 million or 23.3% compared
to the prior year nine-month period driven primarily by $3.6 million in
impairment charges recorded in the current nine-month period on internal-use
software that was retired as well as additional internal-use software placed
into service and fixed assets and intangible assets acquired with Pangea.

Non-operating items


Interest expense, net increased $20.8 million, or 36.3%, to $78.3 million in the
current nine-month period compared to $57.5 million in the prior year nine-month
period. The increase was due primarily to an increase of $756.2 million in the
average amount of debt outstanding to $1,755.5 million during the current
nine-month period from $999.3 million during the prior year nine-month period,
partially offset by a decrease in the weighted average interest rate on our
outstanding debt to 6.07% during the current nine-month period from 7.65% during
the prior year nine-month period.

Equity method investment income increased $4.0 million, or 155.0%, to $6.5
million in the current nine-month period compared to $2.5 million in the prior
year nine-month period. In the current nine-month period, Linear sold its
operating company, resulting in a gain of $11.0 million, which was partially
offset by a $4.4 million loss on the sale of OnDeck Canada.

Provision for income taxes


The effective tax rate of 23.9% in the current nine-month period was lower than
the effective tax rate of 24.5% in the prior year nine-month period due
primarily to the revaluation of the deferred tax liability related to reductions
in state apportionment in separate company filing states.

Net revenue


Net income decreased $51.0 million, or 24.6%, to $156.6 million during the
current nine-month period compared to $207.6 million during the prior year
nine-month period. The decrease was due primarily to higher costs attributable
to growth in the size of the business coupled with a lower but more normalized
net revenue margin in the current nine-month period.

CASH AND CAPITAL RESOURCES

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Capital funding strategy


Since the start of the COVID-19 pandemic, we have taken various actions to
maintain a stable and flexible balance sheet that ensures liquidity and funding
available to meet our business obligations. As of September 30, 2022, we had
cash, cash equivalents, and restricted cash of $172.1 million, of which $84.4
million was restricted, compared to $225.9 million, of which $60.4 million was
restricted, as of December 31, 2021. During the three months ended March 31,
2022, we increased the borrowing capacity on four of our loan securitization
facilities without having to increase any of the respective borrowing rates. In
June 2022, we entered into a new $420.0 million loan securitization facility and
increased the aggregate principal on our existing secured revolving credit
agreement while extending its term. As of September 30, 2022, we had funding
capacity of $579.9 million. Based on numerous stressed-case modeling scenarios,
we believe we have sufficient liquidity to run our operations for the
foreseeable future. Further, we have no recourse debt obligations due until
September 2024.

Historically, we have generated significant cash flow through normal operating
activities for funding both long-term and short-term needs. Our near-term
liquidity is managed to ensure that adequate resources are available to fund our
seasonal working capital growth, which is driven by demand for our loan and
financing products. On May 30, 2014, we issued and sold $500.0 million in
aggregate principal amount of 9.75% senior notes due 2021 (the "2021 Senior
Notes"). On September 1, 2017, we issued and sold $250.0 million in aggregate
principal amount of 8.50% Senior Notes due 2024 (the "2024 Senior Notes") and
used the net proceeds, in part, to retire $155.0 million in 2021 Senior Notes.
On January 21, 2018, we redeemed an additional $50.0 million in principal amount
of the outstanding 2021 Senior Notes. On September 19, 2018, we issued and sold
$375.0 million in aggregate principal amount of 8.50% Senior Notes due 2025 (the
"2025 Senior Notes") and used the net proceeds, in part, to retire the remaining
$295.0 million in principal amount of the outstanding 2021 Senior Notes.

On June 30, 2017, we entered into a secured revolving credit agreement (as
amended, the "Credit Agreement"). On April 13, 2018, October 5, 2018, July 1,
2019 and May 10, 2021, we and certain of our operating subsidiaries entered into
amendments to our Credit Agreement. On June 23, 2022, we entered into an
additional amendment to our Credit Agreement that, among other things, increased
the borrowing capacity to $440.0 million, with a $20.0 million letter of credit
sublimit and $10.0 million swingline loan sublimit. The Credit Agreement bears
interest, at our option, at the base rate plus 0.75% or the Secured Overnight
Financing Rate plus 3.50%. In addition to customary fees for a credit facility
of this size and type, the Credit Agreement provides for payment of a commitment
fee calculated with respect to the unused portion of the commitment, and ranges
from 0.15% per annum to 0.50% per annum depending on usage. The Credit Agreement
contains certain prepayment penalties if it is terminated on or before the first
and second anniversary dates, subject to certain exceptions. The Credit
Agreement matures on June 30, 2026. As of October 26, 2022, our available
borrowings under the Credit Agreement were $130.3 million. Since 2016, we have
entered into several loan securitization facilities and offered asset-backed
notes to fund our growth, primarily in our near-prime consumer installment loan
and small business loan businesses. On October 21, 2022, we entered into a
receivables funding agreement that provides additional funding capacity of
$125.0 million. As of October 26, 2022, we had funding capacity of $506.2
million. We expect that our operating needs, including satisfying our
obligations under our debt agreements and funding our working capital growth,
will be satisfied by a combination of cash flows from operations, borrowings
under the Credit Agreement, or any refinancing, replacement thereof or increase
in borrowings thereunder, and securitization or sale of loans and finance
receivables under our consumer and small business loan securitization
facilities.

As of September 30, 2022, we were in compliance with all financial ratios,
covenants and other requirements set forth in our debt agreements. Unexpected
changes in our financial condition or other unforeseen factors may result in our
inability to obtain third-party financing or could increase our borrowing costs
in the future. To the extent we experience short-term or long-term funding
disruptions, we have the ability to adjust our volume of lending and financing
to consumers and small businesses that would reduce cash outflow requirements
while increasing cash inflows through repayments. Additional alternatives may
include the securitization or sale of assets, increased borrowings under the
Credit Agreement, or any refinancing or replacement thereof, and reductions in
capital spending, which could be expected to generate additional liquidity.

Capital


Our Total stockholders' equity increased by $53.2 million to $1,146.2 million at
September 30, 2022 from $1,093.1 million at December 31, 2021. The increase of
stockholders' equity was driven primarily by net income for the nine months
ended September 30, 2022 and, to a lesser extent, stock-based compensation
expense, partially offset by repurchases of our outstanding common stock. Our
book value per share outstanding increased to $36.24 at September 30, 2022 from
$32.01 at December 31, 2021, which was primarily driven by the decrease in
shares outstanding as a result of share repurchases, which is discussed in more
detail below.

On November 5, 2020, we announced the Board of Directors had authorized a share
repurchase program for up to $50.0 million of our outstanding common stock
through December 31, 2021 (the "2020 Authorization"). On November 4, 2021, we
announced the Board of Directors authorized a new share repurchase program
totaling $150.0 million through December 31, 2022 (the "2021 Authorization").
The 2021 Authorization replaced the 2020 Authorization. On February 9, 2022, we
announced the Board of Directors authorized a new share repurchase program
totaling $100.0 million through June 30, 2023 (the "2022 Authorization"). The
2022 Authorization replaced the 2021 Authorization. Repurchases under our share
repurchase programs are made in accordance with applicable securities laws from
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time to time in the open market, through privately negotiated transactions or
otherwise. Our share repurchase programs do not obligate us to purchase any
shares of our common stock. Similar to our previous share repurchase programs,
the 2022 Authorization may be terminated, increased or decreased by the Board of
Directors in its discretion at any time. During the nine months ended September
30, 2022, we had $118.8 million in repurchases of common stock under our share
repurchase programs.

Cash

Our cash and cash equivalents are held primarily for working capital purposes
and are used to fund a portion of our lending activities. We do not enter into
investments for trading or speculative purposes. Our policy is to invest cash in
excess of our immediate working capital requirements in short-term investments,
deposit accounts or other arrangements designed to preserve the principal
balance and maintain adequate liquidity. Our excess cash may be invested
primarily in overnight sweep accounts, money market instruments or similar
arrangements that provide competitive returns consistent with our polices and
market conditions.

Our restricted cash represents funds held in accounts as reserves on certain
debt facilities and as collateral for issuing bank partner transactions. We have
no ability to draw on such funds as long as they remain restricted under the
applicable arrangements but have the ability to use these funds to finance loan
originations, subject to meeting borrowing base requirements. Our policy is to
invest restricted cash held in debt facility related accounts, to the extent
permitted by such debt facility, in investments designed to preserve the
principal balance and provide liquidity. Accordingly, such cash is invested
primarily in money market instruments that offer daily purchase and redemption
and provide competitive returns consistent with our policies and market
conditions.

Current borrowing facilities


The following table summarizes our debt facilities as of September 30, 2022
(dollars in thousands).

                                                         Weighted
                                                         average
                                                         interest     Borrowing           Principal
                                     Maturity date       rate(a)       capacity          outstanding
Funding Debt:
2018-1 Securitization Facility         March 2027   (b)   6.54%           200,000   (h)       175,000
2018-2 Securitization Facility         July 2025    (c)   6.74%           225,000   (i)       189,327
2019-A Securitization Notes            June 2026          7.62%               276                 276

ODR 2021-1 Securitization facility November 2024 (d) 4.33% 200,000 (j) 169,000 ODR 2022-1 Securitization facility June 2025 (e) 5.73% 420,000

              62,000

RAOD securitization facility December 2023 (f) 5.10% 236,842 (k) 236,842 ODAST III Securitization Bonds May 2027 (g) 2.07% 300,000

             300,000
Total funding debt                                        4.71%      $  1,582,118       $   1,132,445
Corporate Debt:
8.50% Senior Notes Due 2024          September 2024       8.50%           250,000             250,000
8.50% Senior Notes Due 2025          September 2025       8.50%           375,000             375,000
Revolving line of credit               June 2026          6.51%           440,000   (l)       309,000
Total corporate debt                                      7.84%      $  1,065,000       $     934,000



(a) The weighted average interest rate is determined based on the rates and
principal balances on September 30, 2022. It does not include the impact of the
amortization of deferred loan origination costs or debt discounts.
(b) The period during which new borrowings may be made under this facility
expires in March 2025.
(c) The period during which new borrowings may be made under this facility
expires in July 2023.
(d) The period during which new borrowings may be made under this facility
expires in November 2023.
(e) The period during which new borrowings may be made under this facility
expires in June 2024.
(f) The period during which new borrowings may be made under this facility
expires in December 2022.
(g) The period during which new borrowings may be made under this facility
expires in April 2024.
(h) During the current nine-month period, we amended this facility to increase
the maximum borrowing capacity from $150.0 million to $200.0 million.
(i) During the current nine-month period, we amended this facility to increase
the maximum borrowing capacity from $150.0 million to $225.0 million.
(j) During the current nine-month period, we amended this facility to increase
the maximum borrowing capacity from $150.0 million to $200.0 million.
(k) During the current nine-month period, we amended this facility to increase
the maximum borrowing capacity from $177.6 million to $236.8 million.
(l) During the current nine-month period, we amended the Revolving line of
credit to increase the borrowing capacity from $310.0 million to $440.0 million.
Additionally, we had an outstanding letter of credit under the Revolving line of
credit of $0.8 million as of September 30, 2022.
                                       38
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Our ability to fully utilize the available capacity of our credit facilities may also be affected by provisions that limit concentration risk and eligibility.

© Edgar Online, source Previews

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APOLLO COMMERCIAL REAL ESTATE FINANCE, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://piazzaduomo2.com/apollo-commercial-real-estate-finance-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Mon, 24 Oct 2022 20:18:10 +0000 https://piazzaduomo2.com/apollo-commercial-real-estate-finance-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ FORWARD-LOOKING INFORMATION We make forward-looking statements herein and will make forward-looking statements in future filings with the Securities and Exchange Commission ("SEC"), press releases or other written or oral communications within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act […]]]>

FORWARD-LOOKING INFORMATION


We make forward-looking statements herein and will make forward-looking
statements in future filings with the Securities and Exchange Commission
("SEC"), press releases or other written or oral communications within the
meaning of Section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"). For these statements, we claim the protections of
the safe harbor for forward-looking statements contained in such Sections.
Forward-looking statements are subject to substantial risks and uncertainties,
many of which are difficult to predict and are generally beyond our control.
These forward-looking statements include information about possible or assumed
future results of our business, financial condition, liquidity, results of
operations, plans and objectives. When we use the words "believe," "expect,"
"anticipate," "estimate," "plan," "continue," "intend," "should," "may" or
similar expressions, it intends to identify forward-looking statements.
Statements regarding the following subjects, among others, may be
forward-looking: the macro- and micro-economic impact of the COVID-19 pandemic,
increasing interest rates and inflation; the severity and duration of the
COVID-19 pandemic, including the emergence and spread of COVID-19 variants;
actions taken by governmental authorities to contain the COVID-19 pandemic or
treat its impact; the efficacy of the vaccines or other remedies and the speed
of their distribution and administration; the impact of the COVID-19 pandemic on
our financial condition, results of operations, liquidity and capital resources;
market trends in our industry, interest rates, real estate values, the debt
securities markets or the general economy; the demand for commercial real estate
loans; our business and investment strategy; our operating results; actions and
initiatives of the U.S. government and governments outside of the United States,
changes to government policies and the execution and impact of these actions,
initiatives and policies; the state of the economy generally or in specific
geographic regions; economic trends and economic recoveries; our ability to
obtain and maintain financing arrangements, including secured debt arrangements
and securitizations; the timing and amount of expected future fundings of
unfunded commitments; the availability of debt financing from traditional
lenders; the volume of short-term loan extensions; the demand for new capital to
replace maturing loans; expected leverage; general volatility of the securities
markets in which we participate; changes in the value of our assets; the scope
of our target assets; interest rate mismatches between our target assets and any
borrowings used to fund such assets; changes in interest rates and the market
value of our target assets; changes in prepayment rates on our target assets;
effects of hedging instruments on our target assets; rates of default or
decreased recovery rates on our target assets; the degree to which hedging
strategies may or may not protect us from interest rate volatility; impact of
and changes in governmental regulations, tax law and rates, accounting, legal or
regulatory issues or guidance and similar matters; our continued maintenance of
our qualification as a real estate investment trust ("REIT") for U.S. federal
income tax purposes; our continued exclusion from registration under the
Investment Company Act of 1940, as amended (the "1940 Act"); the availability of
opportunities to acquire commercial mortgage-related, real estate-related and
other securities; the availability of qualified personnel; estimates relating to
our ability to make distributions to our stockholders in the future; our present
and potential future competition; and unexpected costs or unexpected
liabilities, including those related to litigation.

The forward-looking statements are based on our beliefs, assumptions and
expectations of our future performance, taking into account all information
currently available to us. Forward-looking statements are not predictions of
future events. These beliefs, assumptions and expectations can change as a
result of many possible events or factors, not all of which are known to us.
Refer to "Item 1A. Risk Factors" of this Quarterly Report on Form 10-Q and our
Annual Report. These and other risks, uncertainties and factors, including those
described in the annual, quarterly and current reports that we file with the
SEC, could cause our actual results to differ materially from those included in
any forward-looking statements we make. All forward-looking statements speak
only as of the date they are made. New risks and uncertainties arise over time
and it is not possible to predict those events or how they may affect us. Except
as required by law, we are not obligated to, and do not intend to, update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.

Overview

We are a Maryland corporation and have elected to be taxed as a REIT for U.S.
federal income tax purposes. We primarily originate, acquire, invest in and
manage performing commercial first mortgage loans, subordinate financings, and
other commercial real estate-related debt investments. These asset classes are
referred to as our target assets.

We are externally managed and advised by the Manager, an indirect subsidiary of Apollo, a high-growth global alternative asset manager with assets under management of approximately $515.0 billion of the June 30, 2022.


The Manager is led by an experienced team of senior real estate professionals
who have significant expertise in underwriting and structuring commercial real
estate financing transactions. We benefit from Apollo's global infrastructure
and operating platform, through which we are able to source, evaluate and manage
potential investments in our target assets.

Current market conditions

                                       34
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During the first quarter of 2020, there was a global outbreak of COVID-19, which
was declared by the World Health Organization as a pandemic. The ongoing
COVID-19 pandemic has adversely impacted global economic activity and has
contributed to significant volatility in financial markets. Due to various
uncertainties, including the rise of new variants, the severity of such new
variants, disparities in vaccination rates and vaccine hesitancy, the ultimate
duration of the pandemic, and additional actions that may be taken by
governmental authorities, further business risks could arise. Although more
normalized activities have resumed and there has been improved global economic
activity due to global and domestic vaccination efforts, we are not in a
position to estimate the ultimate impact COVID-19 and its variants will have on
our business and the economy as a whole, including longer-term macroeconomic
effects on supply chains, inflation and labor shortages. For example, in
response to recent inflationary pressure, the U.S. Federal Reserve and other
global central banks have raised interest rates in 2022 and have indicated
likely further interest rate increases. The effects of COVID-19 and its variants
have adversely impacted the value of our assets, business, financial condition,
results of operations and cash flows, and our ability to operate successfully.
Some of the factors that impacted us to date and may continue to affect us are
outlined in Item 1A. "Risk Factors."

Significant Accounting Policies and Use of Estimates


A summary of our critical accounting policies is set forth in our Annual Report
under "Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations - Critical Accounting Policies and Use of Estimates."

Real estate owned (and related debts)


From time to time, we may obtain legal title to the collateral from our loans
due to non-performance. This acquisition of real estate is accounted for using
the acquisition method under Accounting Standards Codification ("ASC") Topic
805, "Business Combinations." We recognize and measure identifiable assets
acquired, liabilities assumed and any non-controlling interest in the acquiree,
if applicable, based on their relative fair values. Once real estate assets have
been recorded at fair value they are evaluated for impairment on a quarterly
basis. Please refer to "Note 2 - Summary of Significant Accounting Policies,"
"Note 3 - Fair Value Disclosure," and "Note 5 - Assets and Liabilities Related
to Real Estate Owned" for more information regarding real estate owned and our
valuation methodology.

Real estate assets acquired may include land, building, furniture, fixtures and
equipment ("FF&E"), and intangible assets. The fair value of land is determined
by utilizing the market or sales comparison approach, which compares the
property to similar properties in the marketplace. Although we exercise
significant judgment to identify similar properties, and may also consult
independent third-party valuation experts to assist, our assessment of fair
value is subject to uncertainty and sensitive to our selection of comparable
properties.

We estimate the fair value of any building and FF&E by the cost approach which
measures fair value as the replacement cost of these assets. This approach also
requires significant judgment, and our estimate of replacement cost could vary
from actual replacements costs.

Once real estate assets have been recorded at fair value, they are evaluated for
impairment on a quarterly basis. We consider the following factors when
performing our impairment analysis: (i) Management, having the authority to
approve the action, commits to a plan to sell the asset; (ii) significant
negative industry and economic outlook or trends; (iii) expected material costs
necessary to extend the life or operate the real estate asset; and (iv) our
ability to hold and dispose of the real estate asset in the ordinary course of
business. A real estate asset is considered impaired when the sum of estimated
future undiscounted cash flows to be generated by the real estate asset over the
estimated remaining holding period is less than the carrying value of such real
estate asset. An impairment charge is recorded equal to the excess of the
carrying value of the real estate asset over the fair value. When determining
the fair value of a real estate asset for the purpose of assessing impairment,
we make certain assumptions including, but not limited to: consideration of
projected operating cash flows, intended holding period of the real estate,
comparable selling prices and projected cash flows from the eventual disposition
of the real estate based upon our estimate of a capitalization rate and discount
rate. While we exercise significant judgment in generating our assumptions, the
asset's fair value is subject to uncertainty, as actual operating cash flows and
disposition proceeds could differ from those assumed in our valuations.
Additionally, the output is sensitive to the assumptions used in calculating any
potential impairment.

From time to time, real estate assets are classified as held for sale in the
period in which the six criteria under ASC Topic 360, "Property, Plant, and
Equipment" are met: (1) we commit to a plan and have the authority to sell the
asset; (2) the asset is available for sale in its current condition; (3) we have
initiated an active marketing plan to locate a buyer for the asset; (4) the sale
of the asset is both probable and expected to qualify for full sales recognition
within a period of 12 months; (5) the asset is being actively marketed for sale
at a price that is reflective of its current fair value; and (6) we do not
anticipate changes to our plans to sell the asset. Once a real estate asset is
classified as held for sale, depreciation is no longer recorded, and the asset
is reported at the lower of its carrying value or fair value less cost to sell.


                                       35
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We determine the fair value of the real estate asset classified as held for sale
using valuation methodologies appropriate to what is included within the
disposal group, such as the market or sales comparison approach for land and the
cost approach for any building and FF&E. Although we exercise significant
judgment in generating the assumptions employed in these methodologies,
ultimately, the real estate asset's fair value is subject to uncertainty, as the
actual sales price of the real estate asset could differ from those assumed in
our valuations. Further, if it is determined that the asset should be reported
at its carrying value, the actual sales price of the real estate asset could
also differ from this amount.

Current Expected Credit Losses (“CECL”)


We measure and record potential expected credit losses related to our loan
portfolio in accordance with the CECL Standard. The CECL Standard requires an
entity to consider historical loss experience, current conditions, and a
reasonable and supportable forecast of the macroeconomic environment. The FASB
recognizes the WARM method as an acceptable approach for computing current
expected credit losses. We have adopted the WARM method to determine the General
CECL Allowance for the majority of loans in our portfolio, applied on a
collective basis by assets with similar risk characteristics. If we determine
that a borrower or sponsor is experiencing financial difficulty, we will record
loan-specific allowances (our Specific CECL Allowance). Refer to "Note 2 -
Summary of Significant Accounting Policies" to our consolidated financial
statements of our most recent annual report on Form 10-K and "Note 4 Commercial
Mortgage Loans, Subordinate Loans and Other Lending Assets, Net" for further
discussion regarding CECL.

General allowance CECL


There are various significant assumptions required to estimate our General CECL
Allowance which include deriving and applying an annual historical loss rate,
forecasting and analyzing the impacts of macroeconomic conditions and the timing
of expected repayments, satisfactions and future fundings.

We derive an annual historical loss rate based on a CMBS database with
historical losses from 1998 through the third quarter of 2022 provided by a
third party, Trepp LLC. We apply various filters to arrive at a CMBS dataset
most analogous to our current portfolio from which to determine an appropriate
historical loss rate. Selecting these filters requires the use of significant
judgment. The historical loss rate, and ultimately General CECL Allowance we
calculated, is sensitive to the CMBS dataset that we select.

We adjust our determined annual historical loss rate based on our outlook of the
macroeconomic environment, for a reasonable and supportable forecast
period-which we have determined to be one year. We determine our expectations
for the macroeconomic environment by analyzing various market factors and assess
the potential impact on our portfolio. This assessment requires the use of
significant judgment in selecting relevant market factors and our expectations
of the future macroeconomic environment. The future macroeconomic environment is
subject to uncertainty as the actual future macroeconomic environment could vary
from our expectations, which will impact our General CECL Allowance.

Additionally, there are assumptions provided to us by the Manager that represent
their best estimate as to expected loan maturity dates, future fundings, and
timing of loan repayments. These assumptions, although made with the most
available information at the time of the estimate, are subjective and actual
activity may not follow the estimated schedule. These assumptions impact the
future balances that the loss rate will be applied to and as such impact our
General CECL Allowance. As we acquire new loans and the Manager monitors loan
and sponsor performance, these estimates may change each period.

Specific CECL allowance


When we determine that a borrower or sponsor is experiencing financial
difficulty, we evaluate the related loan for loan-specific allowances, under the
practical expedient per the guidance. Determining that a borrower or sponsor is
experiencing financial difficulty requires the use of significant judgment and
can be based on several factors subject to uncertainty. These factors can
include, but are not limited to, whether cash from the borrower's operations are
sufficient to cover current and future debt service requirements, the borrower's
ability to potentially refinance the loan, and other circumstances that can
affect the borrower's ability to satisfy their obligations in accordance the
terms of the loan. When utilizing the practical expedient for collateral
dependent loans, the loan loss provision is determined as the difference between
the fair value of the underlying collateral, adjusted for estimated costs to
sell when applicable, and the carrying value of the loan (prior to the loan loss
provision), as repayment or satisfaction of a loan is dependent on a sale of the
underlying collateral. Collateral-dependent loans evaluated for a Specific CECL
Allowance are removed from the General CECL pool.

The fair value of the underlying collateral is determined by using method(s)
such as discounted cash flow, the market approach, or direct capitalization
approach. These methods require the use of key unobservable inputs, which are
inherently uncertain and subjective. Our estimate of fair value is sensitive to
both the valuation methodology selected and inputs used. Determining a suitable
valuation method and selecting the appropriate key unobservable inputs and
assumptions requires significant judgment and consideration of factors specific
to the underlying collateral being assessed. Additionally, the key
                                       36
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unobservable inputs and assumptions used may vary depending on the information
available to us and market conditions as of the valuation date. As such, the
fair value that we derive and use in calculating our Specific CECL Allowance, is
subject to uncertainty and any actual losses, if incurred, could differ
materially from our provision.

Refer to “Note 2 – Summary of Significant Accounting Policies” to our Consolidated Financial Statements in our most recent Annual Report on Form 10-K for a complete listing and description of our significant accounting policies.

Operating results


All non-USD denominated assets and liabilities are translated to USD at the
exchange rate prevailing at the reporting date and income, expenses, gains, and
losses are translated at the prevailing exchange rate on the dates that they
were recorded.

Loan Portfolio Overview

The following table presents certain information regarding our loan portfolio in September 30, 2022 (in thousands of dollars):

                                                                                                    Weighted Average                                                          Equity at
                                                                     Weighted-Average Coupon          All-in Yield            Secured Debt                                    carrying
            Description                      Carrying Value                    (1)                       (1)(2)             Arrangements (3)       Cost of Funds(4)           value(5)
Commercial mortgage loans, net             $     8,013,469                             5.7  %                  6.5  %       $   5,364,119                     4.3  %       $  2,649,350
Subordinate loans and other lending                717,837                             6.5  %                  7.1  %                   -                       -               717,837
assets, net
Total/Weighted-Average                     $     8,731,306                             5.8  %                  6.5  %       $   5,364,119                     4.3  %       $  3,367,187


——-

(1)  Weighted-Average Coupon and Weighted-Average All-in Yield are based on the
applicable benchmark rates as of September 30, 2022 on the floating rate loans.
(2)   Weighted-Average All-in Yield includes the amortization of deferred
origination fees, loan origination costs and accrual of both extension and exit
fees. Weighted-Average All-in Yield excludes the benefit of forward points on
currency hedges relating to loans denominated in currencies other than USD.
(3)  Gross of deferred financing costs of $13.5 million.
(4)  Cost of funds includes weighted average spread and applicable benchmark
rates as of September 30, 2022 on secured debt arrangements.
(5)  Represents loan portfolio at carrying value less secured debt outstanding.

The following table sets out the details of our commercial mortgage portfolio and our portfolio of subordinated loans and other loan assets, on a loan-by-loan basis, at September 30, 2022 (in millions of dollars):

Commercial Mortgage Portfolio

                                                                                                                                   Construction
   #              Property Type              Risk Rating         

Date of origination Amortized cost Unfunded commitment Loan

       3rd Party Subordinate Debt    Fully-extended Maturity            
Location
1        Hotel                                    3                  10/2019                  $304                 $28                                           Y                        08/2024           Various, Spain
2        Hotel                                    3                  11/2021                   186                  20                                           Y                        11/2026           Various, UK/Ireland
3        Hotel                                    3                  05/2022                   178                  25                                           Y                        06/2027           Napa Valley, CA
4        Hotel                                    3                  04/2018                   152                  -                                                                     04/2023           Honolulu, HI
5        Hotel                                    3                  07/2021                   146                  33                                                                    08/2026           Various, US
6        Hotel                                    3                  09/2015                   146                  -                                                                     06/2024           Manhattan, NY
7        Hotel                                    3                  11/2021                   123                  41                  Y                                                 12/2026           St. Thomas, USVI
8        Hotel                                    3                  08/2019                   117                  -                                                                     08/2024           Puglia, Italy
9        Hotel                                    3                  10/2021                   99                   -                                                                     11/2026           New Orleans, LA
10       Hotel(3)(6)                              5                  03/2017                   98                   -                                                                     10/2022           Atlanta, GA
11       Hotel                                    3                  11/2018                   90                   -                                                                     12/2023           Vail, CO
12       Hotel                                    3                  12/2019                   60                   -                                                                     01/2025           Tucson, AZ
13       Hotel                                    3                  05/2021                   59                   2                                            Y                        06/2026           Fort Lauderdale, FL
14       Hotel                                    3                  05/2019                   52                   -                                                                     06/2024           Chicago, IL
15       Hotel                                    3                  12/2015                   42                   -                                                                     08/2024           St. Thomas, USVI
16       Hotel                                    3                  10/2021                   39                   39                                                                    10/2026           Lake Como, Italy
17       Hotel                                    3                  02/2018                   27                   -                                                                     11/2024           Pittsburgh, PA
18       Hotel                                    3                  12/2021                   21                   28                                                                    06/2025           Dublin, Ireland
19       Office                                   3                  01/2020                   224                  66                                           Y                        02/2025           Long Island City, NY
20       Office                                   3                  03/2022                   218                  47                                           Y                        04/2027           Manhattan, NY
21       Office                                   3                  02/2020                   188                  -                                                                     02/2025           London, UK
22       Office                                   3                  06/2019                   183                  13                                                                    08/2026           Berlin, Germany


                                       37
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23     Office                               3         02/2022        144           -                              06/2025    Milan, Italy
24     Office                               3         02/2022        128          384           Y                 02/2027    London, UK
25     Office                               3         11/2017        121           -                              01/2023    Chicago, IL
26     Office(1)                            3         12/2017        103           -                      Y       10/2022    London, UK
27     Office                               3         06/2022        87            -                              06/2025    Rome, Italy
28     Office                               3         03/2018        86            -                      Y       07/2023    Chicago, IL
29     Office                               3         11/2021        33            38           Y                 11/2025    Milan, Italy
30     Retail                               3         04/2022        417           34                             04/2027    Various, UK
31     Retail                               3         10/2021        362           -                              10/2026    Various, UK
32     Retail                               3         08/2019        249           -                      Y       09/2025    Manhattan, NY
33     Retail                               3         05/2022        155           -                              06/2027    Various, US
34     Retail(3)                            5         11/2014        104           -                              09/2023    Cincinnati, OH
35     Residential(4)                       3         08/2022        354           4                              09/2024    Manhattan, NY
36     Residential                          3         12/2021        195           15                             12/2026    Various, UK
37     Residential                          3         12/2018        136           43                     Y       12/2023    Manhattan, NY
38     Residential                          3         12/2021        101           31                             01/2027    Manhattan, NY
39     Residential                          3         05/2022        89            4                              06/2027    Manhattan, NY
40     Residential                          3         05/2021        82            -                      Y       05/2026    Cleveland, OH
41     Residential                          3         12/2019        60            7                      Y       11/2025    Boston, MA
42     Residential                          3         04/2014        59            -                              07/2023    Various
43     Residential                          3         11/2014        50            -                              06/2023    Various, US
44     Residential                          3         12/2021        32            -                      Y       01/2026    Hallandale Beach, FL
45     Healthcare                           3         03/2022        372           -                              03/2027    Various, MA
46     Healthcare                           3         10/2019        180           -                              10/2024    Various, UK
47     Mixed Use                            3         12/2019        281           88           Y         Y       06/2025    London, UK
48     Mixed Use                            3         03/2022        134           42                     Y       03/2027    Brooklyn, NY
49     Mixed Use                            3         06/2022        59            58           Y         Y       06/2026    London, UK
50     Mixed Use                            3         12/2019        39            -                              09/2023    London, UK
51     Parking Garages                      3         05/2021        270           5                              05/2026    Various, US
52     Industrial                           3         03/2021        232           -                              05/2026    Various, Sweden
53     Portfolio(2)                         3         06/2021        207           20                             06/2026    Various, Germany
54     Caravan Parks                        3         02/2021        183           -                              02/2028    Various, UK
55     Urban Predevelopment(3)              5         01/2016        176           -                              09/2023    Miami, FL
       General CECL Allowance                                       (19)
       Subtotal / Weighted-Average
       Commercial Mortgage Loans           3.1                     $8,013        $1,115                          3.1 Years


Portfolio of subordinated loans and other loan assets

   #                 Property Type                 Risk Rating       

Original date Amortized cost Unfunded commitment Construction loan Third-party subordinated debt Maturity fully extended

         Location
1        Residential(4)                                 3                05/2020                $232                    $-                                                 Y                       09/2024          Manhattan, NY
2        Residential(4)                                 3                06/2015                 187                    13                                                 Y                       09/2024          Manhattan, NY
3        Residential(3)(4)                              5                11/2017                 52                     -                                                  Y                       09/2024          Manhattan, NY
4        Office                                         3                01/2019                 100                    -                                                                          12/2025          Manhattan, NY
5        Office                                         3                08/2017                  8                     -                                                                          09/2024          Troy, MI
6        Healthcare(5)                                  3                07/2019                 51                     -                                                  Y                       06/2024          Various, US
7        Hotel                                          3                06/2015                 23                     -                                                                          07/2025          Phoenix, AZ
8        Hotel                                          3                06/2018                 20                     -                                                                          06/2023          Las Vegas, NV
9        Industrial                                     2                05/2013                 32                     -                                                                          05/2023          Various, US
10       Mixed Use                                      3                02/2019                 16                     -                                                                          10/2022          London, UK
         General CECL Allowance                                                                  (3)
         Subtotal / Weighted-Average
         Subordinate Loans and Other Lending
         Assets                                        3.1                                      $718                   $13                                                                        2.0 Years


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                   Total / Weighted-Average
                   Loan Portfolio              3.1      $8,731   $1,128         3.0 Years


-------
(1)Includes $22.7 million of a subordinate participation sold accounted for as
secured borrowing.
(2)Includes portfolio of office, industrial, and retail property types.
(3)Amortized cost for these loans is net of the recorded Specific CECL
Allowance.
(4)Loans are secured by the same property.
(5)Single Asset, Single Borrower CMBS.
(6)Loan went into maturity default subsequent to the quarter ended September 30,
2022.


Our average asset and debt balances for the nine months ended September 30, 2022
were (in thousands of dollars):

                                                   Average month-end 

balances for the nine months ended

                                                                    September 30, 2022
Description                                                 Assets                     Related debt
Commercial mortgage loans, net                     $           7,977,494          $         5,039,066
Subordinate loans and other lending assets,
net                                                              786,893                            -
Subordinate loans, held for sale                                     833                            -


Portfolio Management

Due to the impact of COVID-19, including longer-term macroeconomic effects on
supply chains, inflation and labor shortages, some of our borrowers have
experienced challenges which have prevented the execution of their business
plans and in some cases, resulted in temporary closures. As a result, we have
worked with borrowers to execute loan modifications which are typically coupled
with additional equity contributions from borrowers. Loan modifications to date
have included repurposing of reserves, temporary deferrals of interest or
principal, and partial deferral of coupon interest as payment-in-kind interest.


Investment Activity

During the nine months ended September 30, 2022, we committed $3.5 billion of
capital to loans ($2.8 billion was funded at closing). In addition, during the
nine months ended September 30, 2022, we received $1.5 billion in repayments and
funded $0.5 billion for commitments closed prior to 2022.

Net income available to common shareholders


For the nine months ended September 30, 2022 and 2021, our net income available
to common stockholders was $260.0 million, or $1.66 per diluted share of common
stock, and $176.5 million, or $1.18 per diluted share of common stock,
respectively.

Operating results


The following table sets forth information regarding our condensed consolidated
results of operations and certain key operating metrics compared to the most
recently reported period ($ in thousands):
                                       39
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                                                                Three months ended
                                                      September 30,           June 30, 2022           Q3'22 vs. Q2'22
                                                           2022
Net interest income:
Interest income from commercial mortgage loans       $     120,821          $       99,386          $         21,435
Interest income from subordinate loans and other            13,354                  14,530                    (1,176)
lending assets
Interest expense                                           (72,302)                (56,529)                  (15,773)
Net interest income                                         61,873                  57,387                     4,486
Operations related to real estate owned:
Revenue from real estate owned operations                   14,428                  18,630                    (4,202)
Operating expenses related to real estate owned            (13,308)                (13,134)                     (174)

Net income related to real estate owned                      1,120                   5,496                    (4,376)
Operating expenses:
General and administrative expenses                         (7,184)                 (7,130)                      (54)
Management fees to related party                            (9,719)                 (9,632)                      (87)
Total operating expenses                                   (16,903)                (16,762)                     (141)
Other income                                                   285                      68                       217
Realized gain on investments                                43,577                       -                    43,577

Cancellation of loan losses – CECL specific deduction, 53,000

          3,000                    50,000

report

Reversal of (provision for) loan losses - General            2,564                  (2,056)                    4,620
CECL Allowance, net
Gain on foreign currency forward contracts                 129,252                 105,213                    24,039
Foreign currency translation loss                          (92,782)                (84,838)                   (7,944)
Gain on interest rate hedging instruments                    1,044                   3,443                    (2,399)
Net income                                                   $183,030                 $70,951                  $112,079



Net Interest Income

Net interest income increased by $4.5 million during the three months ended
September 30, 2022 compared to the three months ended June 30, 2022. The
increase in interest income was primarily due to higher average index rates in
the current period: average U.S. LIBOR increased by 1.48%, average U.S. SOFR
increased by 1.50%, average Daily SONIA increased by 0.66% from the three months
ended June 30, 2022 to the three months ended September 30, 2022. Average
EURIBOR increased by 0.49% during three months ended September 30, 2022 above
the 0.0% floors taken during the three months ended June 30, 2022. The increase
in interest expense was primarily due to (i) higher average index rates in the
current period, as noted above, and (ii) an increase in the weighted average
balance of our outstanding debt facilities by $135.2 million for the three
months ended September 30, 2022, as compared to three months ended June 30,
2022, which was partially offset by a decrease in interest expense related to
the payoff of the 2022 Notes.

Transactions related to real estate held


In 2017, we originated a $20.0 million junior mezzanine loan which was
subordinate to: (i) a $110.0 million mortgage loan, and (ii) a $24.5 million
senior mezzanine loan, secured by a full-service luxury hotel in Washington,
D.C. On May 24, 2021, we acquired legal title to the hotel through a
deed-in-lieu of foreclosure and the criteria for held-for-sale classification in
ASC Topic 360, "Property, Plant, and Equipment" were not met. The assets and
liabilities related to the hotel were assumed at their estimated fair value at
acquisition and presented net of accumulated depreciation and impairment
charges. As of March 1, 2022, the related assets and liabilities were
transferred to assets and liabilities related to real estate owned, held for
sale, as due to our marketing efforts on the property, as well as other
developments, it now met the criteria for held for sale. Results of operations
from the hotel are comprised of operating revenue, expenses and real estate
asset depreciation. As of March 1, 2022, we ceased recording depreciation on the
building and FF&E on the condensed consolidated statement of operations as the
property was transferred to held for sale at such date.

The hotel operations generated $1.1 million of net income during the three
months ended September 30, 2022 compared to $5.5 million of net income during
the three months ended June 30, 2022. The decrease in net income from hotel
operations primarily relates to the decrease in hotel occupancy and events held
due to seasonality of hotel operations during the three months ended
September 30, 2022 compared to the three months ended June 30, 2022.

Refer to “Note 5 – Assets and liabilities related to owned properties” for more information on our impairment and realized losses on owned properties.

                                       40
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Functionnary costs

General and administrative expenses

General and administrative expenses remained generally the same for the three months ended September 30, 2022 compared to the three months ended June 30, 2022.

Management fees to a related party

Management fees remained generally the same for the three months ended
September 30, 2022 compared to the three months ended June 30, 2022.

Other income

Other income generally remained the same for the three months ended
September 30, 2022 compared to the three months ended June 30, 2022.

Gain realized on investments


During the three months ended September 30, 2022, a $43.6 million realized gain
on investments was recorded in connection with the title acquisition for one of
our first mortgage loans secured by a multifamily development in Brooklyn, NY.
The gain reflects the difference between the fair value of the property and the
carrying value of the loan at the time of acquisition.

Refer to “Note 5 – Assets and liabilities related to properties held” for more information on our realized gains on investments.

Loan loss reversals – CECL specific provision, net


Our Specific CECL Allowance decreased by $53.0 million during the three months
ended September 30, 2022. We reversed $53.0 million of previously recorded
Specific CECL allowance on an urban predevelopment first mortgage loan in Miami,
FL, because the collateral which secures the loan is under contract to be sold
in the near term at a higher value than carrying value of the loan pre-reversal.

During the three months ended June 30, 2022, we reversed $10.0 million of
previously recorded allowance on a loan related to a multifamily development in
Brooklyn, NY, due to market rent growth and value created from development
activities, which was partially offset by a $7.0 million allowance on a loan
secured by a hotel in Atlanta, GA resulting from the hotel having a slower than
expected recovery from the COVID-19 pandemic.

Refer to "Note 2 - Summary of Significant Accounting Policies" and "Note 4 -
Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net" for
additional information related to our Specific CECL Allowance.

Reversal of (provision for) loan losses – CECL general provision, net


Our General CECL Allowance decreased by $2.6 million during the three months
ended September 30, 2022 compared to the three months ended June 30, 2022 due to
portfolio seasoning and sale of unfunded commitments, which was partially offset
by one new loan origination and a more adverse macroeconomic outlook.. The
General CECL Allowance increased by $2.1 million during the three months ended
June 30, 2022 compared to the three months ended March 31, 2022 as a result of
new loan originations and a more adverse macroeconomic outlook.

Refer to "Note 2 - Summary of Significant Accounting Policies" and "Note 4 -
Commercial Mortgage Loans, Subordinate Loans and Other Lending Assets, Net" for
additional information related to our General CECL Allowance.

Foreign exchange loss and gain on derivative instruments


We use forward currency contracts to economically hedge interest and principal
payments due under our loans denominated in currencies other than USD. When
gains and losses on foreign currency translation and derivative instruments are
evaluated on a combined basis, the net impact for the three months ended
September 30, 2022 and June 30, 2022 was a $36.5 million and $20.4 million gain,
respectively.

The increase from the previous quarter represents a timing difference between
the valuation on the foreign currency forward contracts, which are valued using
spot rates, forward point estimates, and discount factors, and the foreign
currency translation calculation which uses only spot rates. Additionally, as
rates fell significantly during the quarter our unrealized gain
                                       41
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from derivative instruments, including derivative instruments related to our
future expected interest cash flow, increased. As derivative instruments related
to our future expected interest cash flow have no offset in foreign currency
(loss) they are accounting for some of the variance noted above.

Gain on rate hedges


During the second quarter of 2020, we entered into a three-year interest rate
cap to cap LIBOR at 0.75%. During the three months ended September 30, 2022 and
June 30, 2022, the interest rate cap had an unrealized gain of $1.0 million and
$3.4 million, respectively. The decrease in the unrealized gain is a result of
the nearing maturity of the cap offset by the current interest rate forward
curve.


Subsequent Events

Refer to “Note 20 – Subsequent Events” to the accompanying condensed consolidated financial statements for information on significant transactions that occurred after September 30, 2022.

Contractual obligations, liquidity and capital resources


Liquidity is a measure of our ability to meet potential cash requirements,
including ongoing commitments to fund and maintain our assets and operations,
repay borrowings, make distributions to our stockholders and other general
business needs. We utilize various sources of cash in order to meet our
liquidity needs in the next twelve months, which is considered the short-term,
and the longer term.

Our current debt obligations consist of $1.5 billion of corporate debt at face
value and $5.4 billion of asset financings. Our corporate debt includes: (i)
$779.3 million of term loan borrowings, (ii) $500.0 million of senior secured
notes, and (iii) $230.0 million of convertible notes. Our asset specific
financings are generally tied to the underlying loans and we anticipate
repayments of $765.0 million of secured debt arrangements in the short term.
Specifics about our secured debt arrangements and corporate debt maturities and
obligations are discussed below.

In addition to our debts, as of September 30, 2022we have had $1.1 billion unfunded loan commitments. We expect approximately
$565.2 million will be financed to existing short-term borrowers.


We have various sources of liquidity that we are able to use to satisfy our
short and long term obligations. As of September 30, 2022, we had $319.3 million
of cash on hand. As of September 30, 2022, we also held approximately $1.1
billion of unencumbered assets, consisting of $517.8 million of senior mortgages
and $534.1 million of mezzanine loans. Depending on market conditions, we may
utilize additional borrowings as a source of cash, which may also include
additional secured debt arrangements as well as other borrowings or conduct
additional public and private debt and equity offerings.

We maintain policies relating to our use of leverage. See “Leverage Policies” below. In the future, we may seek to raise additional equity or debt capital or incur other forms of debt to fund future investments or refinance maturing debt.

We generally intend to hold our assets for investment purposes, although we may sell some of our investments to manage our interest rate risk and liquidity needs, to meet other business objectives, operation and adapt to market conditions.


To maintain our qualification as a REIT under the Internal Revenue Code, we must
distribute annually at least 90% of our REIT taxable income, determined without
regard to the deduction for dividends paid and excluding net capital gain. These
distribution requirements limit our ability to retain earnings and replenish or
increase capital for operations.

We also have interests in two unconsolidated joint ventures, each of which owns
underlying properties that secure one of our first mortgage loans, respectively
and are accounted for as off-balance-sheet arrangements. The unconsolidated
joint ventures were deemed to be Variable Interest Entities ("VIEs"), of which
we are not the primary beneficiary. Accordingly, the VIEs are not consolidated
in our condensed consolidated financial statements as of September 30, 2022. Our
maximum exposure to loss from these commercial mortgage loans is limited to
their carrying value, which as of September 30, 2022 was $227.2 million.
Although there is risk of loss we have no contractual obligation to fund any
additional capital into the joint ventures.

Borrowings under various financing agreements

The table below summarizes the unpaid balances and maturities of our various financings:

                                       42
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                                                     September 30, 2022                                     December 31, 2021
                                           Borrowings                Maturity (2)                Borrowings                 Maturity (2)
                                         Outstanding(1)                                        Outstanding(1)
Secured credit facilities              $      3,648,950              January 2026            $      2,256,646               October 2025
Barclays Private Securitization               1,715,169              January 2026                   1,902,684               August 2024
Total Secured debt arrangements        $      5,364,119                                      $      4,159,330
Senior secured term loans              $        779,250              January 2027            $        785,250               January 2027
Senior secured notes                            500,000                June 2029                      500,000                June 2029
Convertible senior notes                        230,000              October 2023                     575,000              February 2023
Total Borrowings                       $      6,873,369                                      $      6,019,580


-------
(1)Borrowings Outstanding represent principal balances as of the respective
reporting periods.
(2)Maturity dates represent weighted average maturities based on borrowings
outstanding and assumes extensions at our option are exercised with consent of
financing providers, where applicable.

Secured credit facilities


As of September 30, 2022, we had entered into secured debt arrangements with
seven secured credit facilities through wholly-owned subsidiaries. Terms under
various master repurchase agreements vary by secured credit facility.

Refer to “Note 7 – Secured credit arrangements, net” to our condensed consolidated financial statements for additional information regarding our secured credit facilities.

Barclays Private Securitization


In June 2020, through a newly formed entity, we entered into a private
securitization with Barclays Bank plc. As of September 30, 2022, we had £936.9
million, €491.8 million, and kr2.1 billion ($1.7 billion assuming conversion
into USD) of borrowings outstanding under the Barclays Private Securitization
secured by certain of our commercial mortgage loans.

Refer to "Note 7 - Secured Debt Arrangements, Net" of our Condensed Consolidated
Financial Statements for additional disclosure regarding our Barclays Private
Securitization.

Senior Secured Term Loans

In May 2019we entered $500.0 million Term loan 2026 and in March 2021we entered $300.0 million Term Loan 2028 (collectively Term Loans). The outstanding principal balance of term loans at September 30, 2022
and December 31, 2021 has been $779.3 million and $785.3 millionrespectively.


Refer to "Note 8 - Senior Secured Term Loans, Net" of our Condensed Consolidated
Financial Statements for additional disclosure regarding our 2026 Term Loan and
2028 Term Loan."

Senior Secured Notes

In June 2021, we issued $500.0 million of 4.625% Senior Secured Notes due 2029
(the "2029 Notes"), for which we received net proceeds of $495.0 million, after
deducting initial purchasers' discounts and commissions. The 2029 Notes had a
carrying value of $494.6 million and $494.1 million, net of deferred financing
costs of $5.4 million and $5.9 million, as of September 30, 2022 and
December 31, 2021, respectively.

Refer to “Note 9 – Senior Secured Notes, Net” to our condensed consolidated financial statements for additional information regarding our 2029 Notes.

Senior Convertible Bonds


In two separate offerings during 2017, we issued an aggregate principal amount
of $345.0 million of 4.75% Convertible Senior Notes due 2022 (the "2022 Notes"),
for which we received $337.5 million, after deducting the underwriting discount
and offering expenses. During the third quarter of 2022, we repaid the $345.0
million aggregate principal amount of the 2022 Notes.

During the fourth quarter of 2018, we issued $230.0 million of 5.375%
Convertible Senior Notes due 2023, for which we received $223.7 million after
deducting the underwriting discount and offering expenses. At September 30,
2022, the 2023 Notes had a carrying value of $229.2 million and an unamortized
discount of $0.8 million.
                                       43
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Refer to “Note 10 – Convertible Senior Notes, Net” to our condensed consolidated financial statements for additional information regarding our convertible notes.

Rate of endettement

The following table shows our debt ratio:

                                      September 30, 2022      December 31, 2021
          Debt to Equity Ratio(1)            2.8                     2.4


-------
(1)Represents total debt less cash and loan proceeds held by servicer (recorded
with Other Assets, refer to "Note 6 - Other Assets" for more information) to
total stockholders' equity.


Leverage Policies

We use leverage for the sole purpose of financing our portfolio and not for the
purpose of speculating on changes in interest rates. In addition to our secured
debt arrangements and senior secured term loan, we access additional sources of
borrowings. Our charter and bylaws do not limit the amount of indebtedness we
can incur; however, we are subject to and carefully monitor the limits placed on
us by our credit providers and those that assign ratings on our company.

At September 30, 2022, our debt-to-equity ratio was 2.8 and our portfolio was
comprised of $8.0 billion of commercial mortgage loans and $717.8 million of
subordinate loans and other lending assets. In order to achieve our return on
equity, we generally finance our mortgage loans with 2.0 to 3.0 turns of
leverage and generally do not finance our subordinate loans and other lending
assets given built-in inherent structural leverage.

Investment guidelines

Our current investment guidelines, approved by our Board of Directors, include the following:

• no investment will be made that would prevent us from qualifying as a REIT for
WE for federal income tax purposes;

•no investment will be made which would require us to register as an investment company under the 1940 Act;

•the investments will be mainly in our target assets;


•no more than 20% of our net equity (on a consolidated basis) will be invested
in any single investment at the time of the investment; in determining
compliance with the investment guidelines, the amount of the investment is the
net equity in the investment (gross investment less amount of third-party
financing) plus the amount of any recourse on the financing secured by the
investment; and

•until appropriate investments can be identified, the Manager may invest the
proceeds of any offering in interest bearing, short-term investments, including
money market accounts and/or funds, that are consistent with our intention to
qualify as a REIT.

The Board of Directors must approve any modification or waiver of these investment guidelines.


Dividends

We intend to continue to make regular quarterly distributions to holders of our
common stock. U.S. federal income tax law generally requires that a REIT
distribute annually at least 90% of our REIT taxable income, without regard to
the deduction for dividends paid and excluding net capital gains, and that we
pay tax at regular corporate rates to the extent that we annually distribute
less than 100% of our net taxable income. We generally intend over time to pay
dividends to our stockholders in an amount equal to our net taxable income, if
and to the extent authorized by our board of directors. Any distributions we
make are at the discretion of our board of directors and depend upon, among
other things, our actual results of operations. These results and our ability to
pay distributions are affected by various factors, including the net interest
and other income from our portfolio, our operating expenses and any other
expenditures. If our cash available for distribution is less than our net
taxable income, we could be required to sell assets or borrow funds to make cash
distributions or we may make a portion of the required distribution in the form
of a taxable stock distribution or distribution of debt securities.

From September 30, 2022and December 31, 2021 we had 6,770,393 Series B-1 Preferred Shares outstanding. The Series B-1 Preferred Shares pay cumulative cash dividends, which are payable quarterly in equal amounts in arrears on the 15th day of each month of January, April, July and October: at a rate of 7.25% per annum from $25.00 liquidation preference per share.

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Except under certain limited circumstances, the Series B-1 Preferred Stock is
generally not convertible into or exchangeable for any other property or any
other of our securities at the election of the holders. On and after July 15,
2026, we may, at our option, redeem the shares at a redemption price of $25.00,
plus any accrued unpaid dividends to, but not including, the date of the
redemption.

The following table details our dividend activity:

                                                    Three months ended                                               Nine months ended
Dividends declared per share
of:                                September 30, 2022                September 30, 2021             September 30, 2022                September 30, 2021
Common Stock                             $0.35                             $0.35                          $1.05                             $1.05
Series B Preferred Stock                  N/A                               N/A                            N/A                               1.00
Series B-1 Preferred Stock                0.45                              0.45                           1.35                              0.45



On July 15, 2021, we exchanged all 6,770,393 shares outstanding of our 8.00%
Fixed-to-Floating Series B Cumulative Redeemable Perpetual Preferred Stock, par
value $0.01 per share ("Series B Preferred Stock"), with a liquidation
preference of $25.00 per share, for 6,770,393 shares of 7.25% Series B-1
Cumulative Redeemable Perpetual Preferred Stock, par value $0.01 per share
("Series B-1 Preferred Stock"), with a liquidation preference of $25.00 per
share, pursuant to an exchange agreement with the two existing shareholders.

Non-GAAP Financial Measures

Distributable Earnings

Distributable Earnings, a non-GAAP financial measure, is defined as net income
available to common stockholders, computed in accordance with GAAP, adjusted for
(i) equity-based compensation expense (a portion of which may become cash-based
upon final vesting and settlement of awards should the holder elect net share
settlement to satisfy income tax withholding), (ii) any unrealized gains or
losses or other non-cash items (including depreciation and amortization related
to real estate owned) included in net income available to common stockholders,
(iii) unrealized income from unconsolidated joint ventures, (iv) foreign
currency gains (losses), other than (a) realized gains/(losses) related to
interest income, and (b) forward point gains/(losses) realized on our foreign
currency hedges, (v) the non-cash amortization expense related to the
reclassification of a portion of the Convertible Notes to stockholders' equity
in accordance with GAAP, and (vi) provision for loan losses. Distributable
Earnings may also be adjusted to exclude certain other non-cash items, as
determined by the Manager and approved by a majority of our independent
directors.

For the three and nine months ended September 30, 2022, our Distributable
Earnings were $95.9 million, or $0.67 per share, and $194.8 million, or $1.36
per share, respectively, as compared to $49.2 million, or $0.35 per share, and
$143.6 million, or $1.01 per share, respectively, for the same period in the
prior year.

The weighted-average diluted shares outstanding used for Distributable Earnings
per weighted-average diluted share has been adjusted from weighted-average
diluted shares under GAAP to exclude shares issued from a potential conversion
of the Convertible Notes. Consistent with the treatment of other unrealized
adjustments to Distributable Earnings, these potentially issuable shares are
excluded until a conversion occurs, which we believe is a useful presentation
for investors. We believe that excluding shares issued in connection with a
potential conversion of the Convertible Notes from our computation of
Distributable Earnings per weighted average diluted share is useful to investors
for various reasons, including the following: (i) conversion of Convertible
Notes to shares requires both the holder of a note to elect to convert the
Convertible Note and for us to elect to settle the conversion in the form of
shares (ii) future conversion decisions by note holders will be based on our
stock price in the future, which is presently not determinable; (iii) the
exclusion of shares issued in connection with a potential conversion of the
Convertible Notes from the computation of Distributable Earnings per
weighted-average diluted share is consistent with how we treat other unrealized
items in our computation of Distributable Earnings per weighted-average diluted
share; and (iv) we believe that when evaluating our operating performance,
investors and potential investors consider our Distributable Earnings relative
to our actual distributions, which are based on shares outstanding and not
shares that might be issued in the future.

The table below summarizes the reconciliation between the GAAP weighted average diluted shares and the weighted average diluted shares used for distributable income:

                                       45
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                                                     Three months ended September 30,                                     Nine months ended September 30,
                                                 2022                                  2021                          2022                                  2021
Weighted-Averages                               Shares                                Shares                        Shares                                Shares
Diluted shares - GAAP                         164,350,132                             170,884,172                 169,252,602                             170,836,682
Potential shares issued under                 (21,187,719)                            (28,533,271)                (26,057,847)                          

(28,533,271)

conversion of the Convertible Notes
Unvested RSUs                                           -                                       -                           -                                       -
Diluted shares - Distributable
Earnings                                      143,162,413                             142,350,901                 143,194,755                             142,303,411



As a REIT, U.S. federal income tax law generally requires us to distribute
annually at least 90% of our REIT taxable income, without regard to the
deduction for dividends paid and excluding net capital gains, and that we pay
tax at regular corporate rates to the extent that we annually distribute less
than 100% of our net taxable income. Given these requirements and our belief
that dividends are generally one of the principal reasons stockholders invest in
a REIT, we generally intend over time to pay dividends to our stockholders in an
amount equal to our net taxable income, if and to the extent authorized by our
board of directors. Distributable Earnings is a key factor considered by the
board of directors in setting the dividend and as such we believe Distributable
Earnings is useful to investors.

As discussed in "Note 5 - Assets and Liabilities Related to Real Estate Owned",
during the three and nine months ended September 30, 2022, we recorded a
$43.6 million realized gain on investments reflecting the difference between the
fair value of a multifamily development property located in Brooklyn, NY
acquired through a deed-in-lieu of foreclosure and the amortized cost of the
loan at the time of foreclosure.

As discussed in "Note 5 - Assets and Liabilities Related to Real Estate Owned"
during the three and nine months ended September 30, 2021, we recorded
$20.0 million realized loss on investments reflecting the difference between the
fair value of a hotel acquired through a deed-in-lieu of foreclosure and the
amortized cost of the loan at the time of foreclosure. Additionally, during the
nine months ended September 30, 2021, we recorded an impairment of $0.6 million
on our real estate owned, held for sale due to increased costs to sell.

We also believe it is useful to our investors to present Distributable Earnings
prior to realized gains (losses) and impairments on real estate owned and
investments to reflect our operating results because (i) our operating results
are primarily comprised of earning interest income on our investments net of
borrowing and administrative costs, which comprise our ongoing operations and
(ii) it has been a useful factor related to our dividend per share because it is
one of the considerations when a dividend is determined. We believe that our
investors use Distributable Earnings and Distributable Earnings prior to
realized gains (losses) and impairments on real estate owned and investments, or
a comparable supplemental performance measure, to evaluate and compare the
performance of our company and our peers.

A significant limitation associated with Distributable Earnings as a measure of
our financial performance over any period is that it excludes unrealized gains
(losses) from investments. In addition, our presentation of Distributable
Earnings may not be comparable to similarly-titled measures of other companies,
that use different calculations. As a result, Distributable Earnings should not
be considered as a substitute for our GAAP net income as a measure of our
financial performance or any measure of our liquidity under GAAP. Distributable
Earnings are reduced for realized losses on loans which include losses that
management believes are near certain to be realized.

The table below summarizes the reconciliation from net income available to
common stockholders to Distributable Earnings and Distributable Earnings prior
to realized gains (losses) and impairments on real estate owned and investments
($ in thousands):
                                       46
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                                                            Three months ended September 30,                  Nine months ended September 30,
                                                              2022                      2021                    2022                     2021
Net income available to common stockholders           $          179,962    

$57,266 $260,015 $176,522
Adjustments: stock-based compensation expense

                                  4,518                  4,405                    13,734                 13,149
Gain on foreign currency forwards                               (129,252)               (32,947)                 (257,227)               (39,653)
Foreign currency loss, net                                        92,782                 24,413                   210,138                 27,808
Unrealized loss (gain) on interest rate cap                       (1,044)                    75                   (10,808)                  (171)
Realized gains (losses) relating to interest income                2,908                   (219)                    8,020                 (1,558)
on foreign currency hedges, net
Realized gains relating to forward points on foreign               1,545                     63                     8,168                     75
currency hedges, net
Amortization of the convertible senior notes related                   -                    824                         -                  2,436
to equity reclassification
Depreciation and amortization on real estate owned                     -                  1,096                       704                  1,548

Release of current expected allowance for credit losses, net

                                                              (55,564)                (5,766)                  (37,897)               (36,590)
Realized (gains) losses and impairments on real                  (43,577)                     -                   (43,577)                20,550
estate owned and investments
Total adjustments:                                              (127,684)                (8,056)                 (108,745)               (12,406)
Distributable Earnings prior to realized gains
(losses) and impairments on real estate owned and     $           52,278    

$49,210 $151,270 $164,116
investments


Realized gains (losses) and impairments on real       $           43,577          $           -          $         43,577          $     (20,550)

land ownership and investments


Distributable Earnings                                $           95,855    

$49,210 $194,847 $143,566
Diluted distributable earnings per share before realized gains (losses) and write-downs on real dollars

             0.37          $        0.35          $           1.06          $        1.15
estate owned and investments
Diluted Distributable Earnings per share of common    $             0.67          $        0.35          $           1.36          $        1.01

Stock

Weighted-average diluted shares - Distributable              143,162,413            142,350,901               143,194,755            142,303,411
Earnings



Book Value Per Share

The table below calculates our book value per share ($ in thousands, except per
share data):
                                                     September 30, 2022           December 31, 2021
Stockholders' Equity                               $         2,407,685          $         2,294,626

   Series B-1 Preferred Stock (Liquidation
Preference)                                                   (169,260)                    (169,260)
Common Stockholders' Equity                        $         2,238,425          $         2,125,366
Common Stock                                               140,595,995                  139,894,060
Book value per share                               $             15.92          $             15.19

The table below shows the evolution of our book value per share:


                                                                          Book value per share
Book value per share at December 31, 2021                               $               15.19

General CECL Allowance                                                                   0.28

Book value per share at December 31, 2021 before CECL general provision and depreciation and amortization

                             $               15.47
Earnings in excess of dividends                                                          0.02
Realized gain on investments                                                             0.31
Net unrealized gain on currency and interest rate hedges                                 0.29
Reversal of Specific CECL Allowance                                                      0.18


                                       47
--------------------------------------------------------------------------------
Vesting and delivery of RSUs                                                       (0.12)
Adoption of ASU 2020-06                                                            (0.02)
Other                                                                              (0.01)

Book value per share at September 30, 2022 before CECL general provision and depreciation and amortization

                             $   

16.12

General CECL Allowance and depreciation and amortization                    

(0.20)

Book value per share at September 30, 2022                              $   

15.92




We believe that presenting book value per share with sub-totals prior to the
CECL Allowances and depreciation and amortization is useful for investors for
various reasons, including, among other things, analyzing our compliance with
financial covenants related to tangible net worth and debt-to-equity under our
secured debt arrangements and senior secured term loan, which permit us to add
the General CECL Allowance to our GAAP stockholders' equity. Given that our
lenders consider book value per share prior to the General CECL Allowance as an
important metric related to our debt covenants, we believe disclosing book value
per share prior to the General CECL Allowance is important to investors such
that they have the same visibility. We further believe that presenting book
value before depreciation and amortization is useful to investors since it is a
non-cash expense included in net income and is not representative of our core
business and ongoing operations.
                                       48

————————————————– ——————————

© Edgar Online, source Previews

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Benefit or burden? The mixed results of an agricultural program https://piazzaduomo2.com/benefit-or-burden-the-mixed-results-of-an-agricultural-program/ Mon, 17 Oct 2022 12:00:05 +0000 https://piazzaduomo2.com/benefit-or-burden-the-mixed-results-of-an-agricultural-program/ HARARE, ZIMBABWE – War veteran Edward Tongoona started farming in 2008, after receiving land under a controversial scheme that redistributed Zimbabwe’s large commercial farms, mostly owned by white farmers, to black farmers . Like many other farmers, Tongoona has no title to his land, only a letter of offer from the government. This made it […]]]>

HARARE, ZIMBABWE – War veteran Edward Tongoona started farming in 2008, after receiving land under a controversial scheme that redistributed Zimbabwe’s large commercial farms, mostly owned by white farmers, to black farmers . Like many other farmers, Tongoona has no title to his land, only a letter of offer from the government. This made it difficult for him to obtain a bank loan.

This limited access to credit – particularly for growing maize, a national staple whose production had fallen by nearly two-thirds by the time Tongoona took up farming – is one of the reasons why the Zimbabwean government introduced a contract farming scheme, popularly known as Command Agriculture, in 2015 which aims to reduce the country’s growing dependence on maize imports. Under this program, in the form of a loan, the government provides farmers with fertilizer and seeds for one season in exchange for 5 tonnes of maize per hectare, the cost of which is deducted after harvest.

Tongoona started participating in the program in 2018. “I joined because I didn’t have enough money to buy everything I needed in agriculture,” he says. “Since then, a lot of things have changed for me. I was able to buy two tractors and other agricultural equipment. Each season, he produces up to 250 tons of maize on his 34.8 hectares and sells it to the Grain Marketing Board, a government body that acts as an intermediary between farmers and millers. “It’s a good program. This should continue as it helped me transition from a small farmer to a more pronounced commercial farmer,” says Tongoona.

Not everyone feels this. Since its inception, the Command Agriculture program has been marred by criticism, ranging from skepticism about its usefulness in boosting Zimbabwe’s food security to accusations of corruption and cronyism. According to government watchdog Veritas, Zimbabwe accrued a “significant portion” of its sovereign debt – which as of September 2021 stood at $13.7 billion – after the program began. “Funding Command Agriculture has disproportionately bled Zimbabwe’s finances,” reads a recent Veritas report, “with little commensurate benefit to the public.”

In 2017, 54% of farmers enrolled in the program defaulted on their loans — in 2018, that number rose to 81%. Prince Kuipa, chief operating officer of the Farmers Union of Zimbabwe, which represents more than a million households, says it is an unfair burden on Zimbabwean citizens “because most taxpayers have no farms”.

“The best way to finance agriculture is not through the government, given its tendency to write off debts,” Kuipa says, adding that the government’s role should be limited to building roads and ensuring proper storage of crops. . “The private sector is more efficient in managing loans. »

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LINDA MUJURU, YPG ZIMBABWE

Harvested maize, produced under Zimbabwe’s controversial Command Agriculture programme, lies on the ground on a farm outside Harare.

Tawanda Murwira is one of the farmers who have defaulted this year. “I only managed to repay part of the loan this year, even though I intended to repay it all,” he says. “The yields weren’t good.” Zimbabwe is expected to have a below-average maize harvest this year, partly due to delayed rains, but Murwira reports other delays as well. “I didn’t get all the inputs I needed, and the few that I did, I didn’t get on time,” he says. “We would be sent goose hunting all over the province to get all the inputs. It really affected the timing of our planting and ultimately the production yield was affected. »

The results have been downright contradictory, according to the Zimbabwe Democracy Institute, a local think tank that evaluated the program in 2020. On the one hand, maize production and deliveries to the Grain Marketing Board appear to have increased under the program. ; the other, his report notes, food insecurity and maize imports have also increased. One of the reasons for this apparent contradiction, according to the report, is that the ruling party and “securocrats” – a term used in southern Africa for police and military who wield political influence – run the agriculture of command as a form of patronage, and its revenues have been “a very powerful means by which supporters of the regime are financed, incentivized and rewarded”, making it “very difficult to translate bumper harvests into food security and reduced imports corn”.

Well-connected farmers tend to receive inputs before others, says Murwira; moreover, he says, the inputs for the program are sometimes sold on the black market, sometimes by the military officers in charge of distributing them. A 2020 survey of 200 beneficiaries and stakeholders by the Zimbabwe Democracy Institute found that 64% believed the program was riddled with corruption. The House Public Accounts Committee alleges that about $3 billion was misappropriated under the program. Asked about the allegations, Deputy Agriculture Minister Douglas Karoro said he would respond – but days later he was arrested for allegedly stealing agricultural inputs from the Presidential Input Scheme, a program similar to Command Agriculture. . He has since been fired; the Agriculture Ministry did not respond to further requests for comment.

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Graphic by Matt Haney, YPG

Although corn production has increased in recent years, says Andrew Pascoe, president of the Commercial Farmers Union, the program has affected other areas of agriculture as well. “It also tends to push all inputs out of the market, leaving those that don’t grow under Command Agriculture in short supply,” he says, adding that late payments to input suppliers have a ripple effect on production. of inputs. “Funding for commercial agriculture should be left to the private sector,” he says, “while government focuses on creating an enabling policy environment that encourages production.”

Freedom Mazwi, a Harare-based agrarian researcher, disagrees. Agriculture is too important to be left to the private sector, he says, refuting the prevailing idea that Zimbabwe’s dependence on maize imports is linked to land reforms initiated in the 2000s. and the International Monetary Fund have urged Zimbabwe and many African states to withdraw from financing agriculture, and what have been the results? Export crops have flourished, but the country has started to be a net importer of cereals,” he says. “African governments can learn a lot from Command Agriculture. Recently, the Rwandan government announced that it would take a similar approach in the wake of the Russian-Ukrainian war, which left many African countries food dependent.

He also notes that agricultural inputs are priced in US dollars while payment for agricultural output is largely made in the local currency, the Zimbabwean dollar (ZWL), which continues to lose value. “This means that farmers who are paid in ZWL find it very difficult to buy inputs for the next farming season, which are pegged to the US dollar,” he says.

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LINDA MUJURU, YPG ZIMBABWE

Rows of maize are ready to be harvested at a farm in Porta, near Harare.

Mazwi acknowledges that the program is not without flaws. He and his fellow researchers recommend more targeted selection of Command Agriculture beneficiaries — in particular, larger mechanized cultivators with a proven history of corn production. (Aid for small farmers, he adds, can be channeled through other programs.) “It is true that there were imports of maize after 2016, when the initiative was introduced. for the first time,” he said. “Droughts are the main reason. This is why we suggest that beneficiary selection targets farmers with irrigation facilities and large farms to act as a buffer against droughts and other climatic shocks. If this is complemented by a good pricing framework, it can go a long way towards enhancing national food self-sufficiency.

Murwira, however, has decided to step down for the time being. He focuses on self-financing next season’s harvest. “If run well, it’s a good program, but right now it’s riddled with confusion and corruption,” he says. “As things stand, I will no longer apply for funding under Command Agriculture or any government-supported funding. Agriculture is time sensitive, and time is not essential in these programs. »

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ASFA Responds to New CRL Report on Installment Loans | Ballard Spahr LLP https://piazzaduomo2.com/asfa-responds-to-new-crl-report-on-installment-loans-ballard-spahr-llp/ Wed, 12 Oct 2022 18:11:45 +0000 https://piazzaduomo2.com/asfa-responds-to-new-crl-report-on-installment-loans-ballard-spahr-llp/ On July 28, the Center for Responsible Lender (CRL) published a new report regarding the “persistent damages of high-cost installment loans,” claiming that such loans come with an “operating cost” in fees and interest that far exceeds the amount borrowed, often causing irreparable harm to borrowers. CRL notes that the high-cost low-cost loan market has […]]]>

On July 28, the Center for Responsible Lender (CRL) published a new report regarding the “persistent damages of high-cost installment loans,” claiming that such loans come with an “operating cost” in fees and interest that far exceeds the amount borrowed, often causing irreparable harm to borrowers. CRL notes that the high-cost low-cost loan market has recently seen the rise of high-cost installment loans with atypically longer terms, typically over a period of months, unlike traditional payday loans, which are typically due at once. sum within fourteen days.

CRL is concerned about the increase in these longer-term loans because they have similar characteristics to other payday loans and car titles, including lack of underwriting, access to bank account or vehicle a borrower as collateral, “structures” that make it difficult for borrowers to repay, excessive rates and fees, and a tendency towards loan reversal or stressed reborrowing. CRL concludes that borrowers cannot afford to repay these loans, whether they are structured as an installment or lump sum loan.

The data used in the report was collected via an online survey of 1,000 adults who took out at least one high-cost personal loan in 2019, 2020, or 2021, with samples of 100 black adults and 100 Latino adults who took out high-cost personal loans. such loans. . In addition to the survey, CRL hosted two virtual focus groups with high-cost installment loan borrowers. To be eligible for inclusion in the focus groups, participants had to have taken out a high-cost installment loan, with terms longer than two months in 2019, 2020 or 2021.

Among other things, the CRL report includes the following findings:

(1) Adverse terms of high-cost installment loans led most loans to be refinanced at least once. For the significant share of borrowers surveyed who have missed or made late payments on their loans, the consequences have been severe.

(2) The burden of repaying high-cost loans often caused borrowers to default on other obligations, resulting in additional debt or a greater financial deficit, aggravating rather than alleviating pre-existing financial difficulties.

(3) Borrowers understood that these loans hurt their credit rating and delayed wealth-building activities such as buying a house or car, investing in a business, or saving money. retirement, but circumstances led them to believe they had no other option to cope with in the short term. -term financial needs.

The American Financial Services Association (ASFA) replied to the CRL report, noting that the CRL groups traditional installment lenders (TILs) and other lenders of titles other than payday and auto into a single category identified as “high-cost installment lenders.” By “misleadingly grouping all forms of installment lenders under one umbrella”, ASFA argues that CRL is confusing both policy makers and consumers because, despite CRL’s assertion that these loans share similar characteristics with other payday and car title loans, this is simply not the case. for TILs. According to the AFSA, unlike these loans, TIL lenders “underwrite and assess customers’ ability to pay; they do not need to access customers’ bank accounts; the terms are clear, with standard monthly payments, no hidden fees, no lump sum payments or prepayment penalties, and credit bureau reporting. »

ASFA also notes, contrary to CRL’s assertion, that there is a great deal of research on the “effects of predatory lending on consumers’ financial status and the benefits of responsible small-dollar lending to consumers, particularly those who have subprime credit ratings” and that CRL’s “fallback policy of imposing interest rate caps to protect consumers” is unworkable and will lead to the proliferation of predatory lenders that CRL opposes.

[View source.]

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Victor Wembanyama just warned the NBA: He is the future https://piazzaduomo2.com/victor-wembanyama-just-warned-the-nba-he-is-the-future/ Sun, 09 Oct 2022 11:03:17 +0000 https://piazzaduomo2.com/victor-wembanyama-just-warned-the-nba-he-is-the-future/ They say a few days in Las Vegas can change a person’s life, and you should hear from the NBA scouts, executives and players who attended last week’s two-day showcase about the future. They didn’t lose at the casino. They have lost their collective spirit. It was the United States debut of 18-year-old Victor Wembanyama, […]]]>

They say a few days in Las Vegas can change a person’s life, and you should hear from the NBA scouts, executives and players who attended last week’s two-day showcase about the future.

They didn’t lose at the casino. They have lost their collective spirit.

It was the United States debut of 18-year-old Victor Wembanyama, who is said to be the most intriguing prospect in modern history. Playing in front of bustling crowds at Dollar Loan Center, the new home of the NBA’s G League Ignite, Wembanyama was in town with Metropolitans 92, his French League team. Suffice it to say, the center put on a show that turned every rumor into dreamlike truth.

On the contrary, it exceeded expectations. And what made the games ridiculously special was that Scoot Henderson, considered the second coming of Ja Morant, is the star player in the G League Ignite and ranked No. 2 on every fictional prediction for the NBA draft. next year.

Henderson bumped his knees with his current and future rival in the first quarter of Thursday’s game and didn’t return, so the focus was mostly on Wembanyama, who had 37 points and five blocked shots on Tuesday night and followed with 36 and four.

First order of business in stride: let’s get an official measurement of this teenager’s height, without his shoes, and make sure the occasion is nationally televised. Various outlets this week listed his height at 7-foot-2, 7-foot-3, 7-foot-4, and (per ESPN) 7-foot-5.

What LeBron James says,
no matter. “Everybody’s been a ‘unicorn’ lately, but he’s more like an alien,” James said Wednesday. “No one has ever seen someone as tall as him, but as fluid and as graceful as him. With his ability to put the ball on the ground, to pull back jumpers off the post, to drop 3s back, to catching and shooting 3s, blocking shots, he’s for sure a generational talent.

There’s a joke in NBA circles that the Warriors, Bucks, Nets and other title-seeking teams should just forget all about it and ditch the season, hoping to land that No. 1 pick. But tanking
is
a very realistic path for teams such as Houston (which would be in the best position as far as draft picks currently held), Indiana, San Antonio, Oklahoma City and all the other teams whose opening night dreams are spinning in vinegar. (Under draft lottery rules, the three worst-performing teams in the league each have a 14% chance of landing the first overall pick.)

For teams such as New Orleans, Cleveland, Atlanta and the Lakers, sneaking into the play-in tournament could lead to a surprising run through the playoffs. For the underdog, however, the gaming berth suddenly has no appeal. It’s a no man’s land between “no luck” and “no Victor”.

He was born and raised in France, where he will return for one more season with the Paris-based Metropolitans. His father, Félix, is of Congolese origin and a former triple jump specialist who has a 6-5 record. His French mother, Elodie de Fauterau, is 6-2 years old and has a basketball background as a player and coach (for children around 10 and under). Victor said he never trained with his mother, and although he initially focused on the track, the basketball court was too much of a temptation.

Last summer at the FIBA ​​U19 World Cup in Latvia, Wembanyama found himself up against Chet Holmgren, the gifted 7-foot center who will miss the next NBA season (with Oklahoma City) at following an operation on his right. foot. Holmgren’s USA team won the title, but Wembanyama dominated in every category.

“I don’t really give people a lot of credit, but I give it to this guy here,” Holmgren said afterwards. “I thought I was tall, I thought I had long arms, but he’s taking that to a whole new level. He moves really well. He’s got a kick. He’s got skills too. He’ll be a rich man one day.

Wembanyama is also an extremely thin man, like Holmgren, and both will be put to the test by the relentless NBA physique over the years. For now, so early in the game, watchers can only marvel.

The “phenomenon” center is a long-standing tradition. You see them coming years in advance – Wilt Chamberlain, Kareem Abdul-Jabbar, Ralph Sampson, Arvydas Sabonis, Shaquille O’Neal, Yao Ming – and all of these players arrived in the NBA as advertised. There’s no cross yet, though, with Wembanyama’s combination of length, coordination, touch and attacking skills, including crossover dribbling, drop-step rotational moves and a left hand gifted.

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Keep an eye on your title https://piazzaduomo2.com/keep-an-eye-on-your-title/ Fri, 23 Sep 2022 23:27:19 +0000 https://piazzaduomo2.com/keep-an-eye-on-your-title/ Identity theft is no longer about protecting your mail, credit cards and bank account. Bad actors evolved in their betrayal and moved on to property theft through title fraud. With a few forged documents, scammers can meet County Recorder requirements, altering title and effectively stealing property rights. You may be wondering how this type of […]]]>

Identity theft is no longer about protecting your mail, credit cards and bank account. Bad actors evolved in their betrayal and moved on to property theft through title fraud. With a few forged documents, scammers can meet County Recorder requirements, altering title and effectively stealing property rights.

You may be wondering how this type of fraud was possible. Fraudsters create forged title deeds and file them with the county registrar’s office. Until recently, many of these crimes went undiscovered until the homeowner had a reason to check the title when refinancing or selling their home.

The District Attorney’s Office combats this type of fraud with a dedicated team of prosecutors and investigators who work in conjunction with the Assessor/Records Officer/County Clerk’s Office to bring fraudsters to justice. However, often the harm to the victims has already been done.

The San Diego County Assessor/Recorder/Clerk has launched a system that will protect property owners through a registration notification service, free to all members of the public. Consumers can register online to receive an email alert within 48 hours whenever a document is registered at a registered property. Owners can register up to five names and five Assessor Package Numbers (APNs). This service will allow consumers to get ahead of fraudsters before they have had a chance to cause actual damage to a property.

Until recently, there was no system in place to notify the rightful owner that the title had been stolen. This has given scammers valuable time to secure loans using the property as collateral or when the property is vacant, set up tenants and even sell the house to an unsuspecting buyer.

Consumers can register online by visiting the San Diego County Assessor/Recorder/County Clerk website at: https://arccprn.sandiegocounty.gov/ Here are some tips for avoiding title fraud:

  • Sign up for the registration notification system
  • Search the county’s official index for documents previously recorded under your name and ownership.
  • Be careful with online signing apps such as Docusign – read the entire document to make sure it’s the correct contract and keep a copy of the signed version.
  • If you have a vacant second home or home, check it regularly to make sure there are no squatters, unwanted tenants or fraudsters trying to occupy the home – it can be as simple as install an internet webcam at home.
  • Make sure your property tax bill is paid on time and in your name.
  • Make sure all your utilities are paid on time and are in your name.
  • Continue to take steps to protect yourself against basic identity theft. If you believe you have been the victim of title fraud, report the incident to a local police department or request a real estate fraud complaint form from the San Diego District Attorney at realestatefraudcomplaints@sdcda.org .

For more information, please visit our website at https://www.sdcda.org/preventing/real-estate-fraud/. As district attorney, I am committed to increasing communication and accessibility between the district attorney’s office and the public. I hope these safety tips for consumers and the public have been useful to you.

Keep an eye on your title



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Candente Copper appoints Steven Latimer and Jeremy Meynert as administrators and arranges $1 million loan https://piazzaduomo2.com/candente-copper-appoints-steven-latimer-and-jeremy-meynert-as-administrators-and-arranges-1-million-loan/ Thu, 22 Sep 2022 12:00:00 +0000 https://piazzaduomo2.com/candente-copper-appoints-steven-latimer-and-jeremy-meynert-as-administrators-and-arranges-1-million-loan/ Candente Copper Corp. VANCOUVER, British Columbia, Sept. 22, 2022 (GLOBE NEWSWIRE) — Candente Copper Corp. (TSX: DNT, BVL: DNT) (“Candente Copper” or the “Company”) is pleased to announce that it has appointed Steven Latimer and Jeremy Meynert as directors of the Company, and has entered into a loan agreement with Nascent Exploration Pty Ltd (“Nascent”), […]]]>

Candente Copper Corp.

VANCOUVER, British Columbia, Sept. 22, 2022 (GLOBE NEWSWIRE) — Candente Copper Corp. (TSX: DNT, BVL: DNT) (“Candente Copper” or the “Company”) is pleased to announce that it has appointed Steven Latimer and Jeremy Meynert as directors of the Company, and has entered into a loan agreement with Nascent Exploration Pty Ltd (“Nascent”), a wholly owned subsidiary of Fortescue Metals Group Limited (“Fortescue”) for a loan (the “Loan”) in the aggregate principal amount of $1,000,000 for a term of 12 months at an interest rate of 10% to be repaid at maturity.

Giulio T. Bonifacio, Executive Chairman of Candente Copper, said, “I am very pleased to announce the appointments of Steven Latimer and Jeremy Meynert to the Candente Copper Board of Directors. Their collective capital markets experience in mining and their track record of value creation will contribute significantly to the future success of Candente Copper. Additionally, the loan from Fortescue, Candente Copper’s largest shareholder, demonstrates its continued support while providing the company with working capital as we evaluate various opportunities to advance the Cañariaco copper project by advancing studies. engineering and environmental studies and drilling more, which will lead to the publication of a feasibility study.”

Steven Latimer

Mr. Latimer is Managing Director and Head of Americas for Bacchus Capital Advisers, an independent investment bank specializing in the natural resources sector, based in London. Mr. Latimer has over 30 years of experience as a leading global M&A advisor and has led numerous financings for mining companies, with a focus on mining and developing copper companies. development operating in the Americas.

Mr. Latimer previously served as Managing Director and Head of Canadian Investment Banking for Jefferies and served as a Director and President of Jefferies Securities, Inc. Prior to Jefferies, Mr. Latimer was responsible for the Investment Banking practice in metals and mining from Credit Suisse.

Mr. Latimer holds the Director designation from the Institute of Corporate Directors (ICD.D), received his MBA from the Kellogg Graduate School of Management at Northwestern University and his HBA from the University of Western Ontario. . In addition, Mr. Latimer is a CFA charter holder.

Jeremy Meynert

Mr. Meynert is responsible for business development at Fortescue. In this role, he is responsible for Fortescue’s transactional business development activities, including managing Fortescue’s investment portfolio of publicly traded mining companies and structuring investment transactions.

Mr. Meynert was previously Head of Business Development and Investor Relations at Resolute Mining Limited, where he was responsible for corporate strategy, transactional business development, financing, external relations and communications. Previously, Meynert was Vice President of Metals and Mining Investment Banking at Citigroup, based in London and Australia.

Mr. Meynert holds a Masters in Mining Engineering (Excellence), a Bachelor of Laws (Distinction), a Bachelor of Commerce (First Class Honours) and is admitted to practice as a lawyer.

A loan

The loan constitutes a “related party transaction” for the purposes of the 61-101 Multilateral Instrument Protection of holders of minority securities in special transactions (“MI 61-101”), as Fortescue (through Nascent) owns more than 10% of the outstanding common shares of the Company. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements under NI 61-101 in respect of the Loan, relying on Sections 5.5(a) and 5.7(1) (a) of NI 61-101, respectively, since the fair market value of the loan does not exceed 25% of the market capitalization of the Company determined in accordance with NI 61-101. The board of directors of the Company has approved the loan, and no materially contrary views or abstentions have been expressed or expressed by any director of the Company in this regard. The loan remains subject to the approval of the Toronto Stock Exchange.

About Candente Copper
The Company’s flagship project is the Cañariaco copper project, within which Cañariaco Norte is located, on the 10e largest late-stage copper resource in the world and 5e highest in rank (RFC Ambrian, December 2021 and Haywood, December 2021). In addition to Cañariaco Norte, the Cañariaco copper project includes the Cañariaco Sur deposit and the Quebrada Verde prospect, all in a NE-SW direction of 4 km in the prolific mining district of northern Peru.

The Company is very pleased to have Cañariaco Norte included in four research reports that compare various global copper projects. Ambrian RFC: Cañariaco Norte in the top 10 of 23 projects likely to involve third-party mergers and acquisitions (December 2021); Haywood: Cañariaco Norte is one of 18 assets selected as likely to be considered by majors seeking to acquire (December 2021); German Bank: Cañariaco Norte identified as one of three projects needed to close the next gap between copper supply and demand (February 2021); Goldman Sachs: Cañariaco Norte has identified the copper incentive price in the lowest quartile of the 84 major copper projects in the world (October 2018).

Caution Regarding Forward-Looking Statements

This press release contains forward-looking information within the meaning of Canadian securities laws (“forward-looking statements”). Forward-looking statements are generally identified by words such as: believe, expect, anticipate, intend, estimate, plan, assume and similar expressions, or are those which by their nature refer to events future. All statements that are not statements of historical fact are forward-looking statements, including, but not limited to, statements regarding the progress of the Loan and the acceptance thereof by the TSX. These forward-looking statements are made as of the date of this press release. Although the Company believes that the forward-looking statements contained in this press release are reasonable, it cannot guarantee that the expectations and assumptions contained in these statements will prove to be correct. The Company cautions investors that the Company’s forward-looking statements are not guarantees of future results or performance and are subject to risks, uncertainties, assumptions and other factors that could cause events or results differ materially from those expressed or implied by such forward-looking statements. These factors and assumptions include, among others, obtaining regulatory approvals, changes in market conditions; metal prices; other prices and costs; exchange rate; the ability of the Company to obtain all permits, consents or authorizations necessary for its activities; the Company’s ability to access additional financing and to produce minerals from its properties successfully or profitably, to continue its anticipated growth or to be fully able to implement its business strategies. In addition, there are known and unknown risk factors that could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements.

Known risk factors include risks associated with exploration and project development; the need for additional funding; calculation of mineral resources; operational risks associated with mining and mineral processing; metal price fluctuations; the title matters; government regulations; obtain and renew necessary licenses and permits; environmental liability and insurance; reliance on key personnel; local community opposition; currency fluctuations; labor disputes; competition; dilution; volatility in the price and volume of our common stock; future sales of shares by existing shareholders; and other risk factors described in the Company’s Annual Information Form and in other documents filed with Canadian securities regulators, which may be viewed at www.sedar.com. Although we have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause actual actions, events or results are not those anticipated, estimated or intended. . There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. We undertake no obligation to update or change any forward-looking statements, except as required by applicable securities laws.

On behalf of the Board of Directors of Candente Copper Corp.

Giulio T. BonifacioExecutive Chairman

For more information, please contact:
Giulio T. Bonifacio
gtbonifacio@candente.com
+1 604 318-6760

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Three Reasons to Keep an Eye on Renters (2022) https://piazzaduomo2.com/three-reasons-to-keep-an-eye-on-renters-2022/ Tue, 20 Sep 2022 13:37:19 +0000 https://piazzaduomo2.com/three-reasons-to-keep-an-eye-on-renters-2022/ Everyone’s gaming adventure started somewhere. For many players born in the 1990s, this journey was initiated and stimulated by The Sims, Sim City and miscellaneous Magnate securities. Something about being a cat with ultimate fishbowl power spoke to gamers back then and continues to do well in the 2020s. Beyond expectation, the simulation genre still […]]]>

Everyone’s gaming adventure started somewhere. For many players born in the 1990s, this journey was initiated and stimulated by The Sims, Sim City and miscellaneous Magnate securities. Something about being a cat with ultimate fishbowl power spoke to gamers back then and continues to do well in the 2020s. Beyond expectation, the simulation genre still brings new ideas and concepts to players, even when it seems impossible. A quick Google searching reveals titles like “lawn mower simulator“, “grandma simulator“, “goat simulator“, and “house pinball“, further emphasizing the fact that the simulation genre is one where no stone is left unturned.

The tenants is yet another entry in the genre and is a game about being an interior designer, real estate agent, exterminator, therapist, and landlord all rolled into one while receiving no salary. The game is a mix of The Sims in its approach to construction and design, a Magnate game in its approach to managing finances, and City Sim by being constantly on the lookout for natural disasters and the ever-changing needs of tenants. Although The tenants is still an early access title, its core concept is thrilling and engaging, even with a few hiccups along the way.


Let’s turn this house into a house

The first mechanic players will encounter while playing The tenants is something that will make or break the game for many, an interior design system that looks a lot like The Sims in its execution. At the start of the game, interior design jobs are straightforward. Players will take on jobs where tenants want their bathroom redone to fit a particular aesthetic or perhaps want to add an entire room type to their home. Although this system starts out raw, it becomes quite a robust system over time.

As the game progresses and a fuller range of items are unlocked, players can take on jobs with more complex and creative demands that require careful planning and budgeting. There are limitations to the design system in The tenants, however, players never have enough freedom to construct their own buildings and instead must content themselves with adding new walls, doors, and decorations.

However, for everything this system lacks, it makes up for it by tying into the other gameplay mechanics and constantly expanding as players play, making the ever-increasing options well-deserved.


I will need a bank statement and your last three pay checks please

meat and potatoes The tenants, and where the game stands out is in the financial aspect of the gameplay. The basic concept is about as simple as it gets: play the game, earn capital, invest in more properties, and slowly but surely climb the social ladder of homeownership. However, as with real finances, it’s almost never that simple.

Throughout the game, players must balance the need for a high-interest loan from the bank with juggling utilities, brokerage fees, and acquisition costs, among other things. Along with this, there is also a system where tenants and players will constantly renegotiate rent, trying to find the balance between making a profit and being affordable.

The game also has a built-in financial tracker, which is surprisingly deep for “casual” style play and elevates the financial aspects. Using the tracker, players can view detailed reports on the financial health of each of their properties and view the credit score of their tenants. Using this information, players can track changes in property values ​​over time and create a long-term tenant profile.


A homeowner’s job is never done

Aside from the interior design part of the game and financial management, the final core mechanic bringing everything together is enjoyable for people. During the game, tenants will encounter all sorts of problems and problems, from insect and rodent infestations, faulty appliances and burst pipes to natural disasters, such as earthquakes.

In addition to managing and implementing solutions to problems that constantly arise, certain situations require you to stay on top of your tenant’s ever-changing whims. Whether it’s responding to requests for general home upgrades or installing better internet, tenants will always have something for gamers to do.

Constantly managing tenants and keeping them happy adds a lot of variety and excitement to what would otherwise be downtime in the game. None of these tasks are incredibly taxing, but they are entertaining and offer an almost ” mini-gameesque”.

Tasks can be completed in a variety of ways, most often by sending a handy dandy uncle or by spending money and hiring professionals. Whatever solution is implemented, it must happen quickly before unqualified tenants get tired of waiting and tackle the problem themselves, resulting in greater damage and higher costs.


The tenants is, in a word, “unique”, with few other games offering a similar blend of gameplay. The game features some rather complex concepts in a way that never feels overwhelming, and the included financial tracking elevates the game with an educational flare.

Globally The tenants is an engaging, if somewhat unrealistic, landlord simulator and a great way to spend a few hours living the life of a real estate tycoon. It’s worth keeping how much The tenants is still an Early Access title, a status it holds for good reason.

While the basics are solid, there are definite improvements to be made and more than a few creases to iron out. However, if the developers continue to work, The tenants promises to be an excellent economic management simulation game.

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