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No. of Recommendations: 2
In addition to the issues the asset management unit presents, I was also a bit disappointed in with net operating income provided by the commercial unit after seeing growth in the portfolio. Net operating income only grew 7.6% while the portolio size grew 44% and the net interest income grew 14%. The culprit was operating expenses which grew a whopping 35%. Part of that, $500k, was due to opening 2 new locations but even subtracting that expenses grew 26%. Of course investment is needed to drive growth so it may pay off in the future, I just think it bares watching.

Expenses also increased in the Treasury division, which brings up a question I have: What exactly does the Treasury division do?

From the report:

"The Treasury Division incorporates the Bank’s liquidity management
and investment securities activities."

What exactly does this mean? Do they basically provide the trade execution for the firm? If so why is it a separate division? Just trying to understand the company better.

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