active in terms of M&A discussions, CBF continues to evaluate all opportunities that promise the best returns for shareholders. Interestingly, investor sentiment around CBF’s positioning within the M&A market shifted, 75% of respondents believing the pro forma institution is better positioned to act as an acquirer. (Note last year, 55% of respondents believed CBF would be a takeout candidate in the medium term. Chart 23: Do you think the pace of M&A activity will pick-up significantly Chart 24: Does the acquisition of CommunityOne better position CBF as in 2017 vs. 2016? an acquirer or a takeout candidate? 90% 80% 80% 715% 80% 70% iO 60% te} oe 50% 50% 40% 40% 9 25% 30% 30% f 20% ; 20% 20% 10% 10% 0% 0% Yes No Acquirer Takeout candidate Source: BofA Merrill Lynch Global Research Source: BofA Merrill Lynch Global Research = CBF expected to prudently grow in CRE as bank is underpenetrated. CFO Chris Marshall acknowledged that there exist signs of frothiness within the multi-family lending segment. That said, he noted there is still room to grow as peers pull back in response to regulatory oversight (3Q: 161% vs. 300% threshold}. That said, management remains selective and has implemented a 25-30% concentration limit (3Q: 22%). Citigroup (C), B-1-7, Buy - Markets revenue up YoY so far, down from robust 3Q. President and CEO of ICG Jamie Forese and CFO John Gerspach noted that at this current point in time, they expect a seasonal sequential decline in Markets revenue in 4Q, but revenues should be up YoY on back of stronger activity levels post the election. Moreover, banking activity is looking consistent with prior quarters. ¢ DTA impact from lower tax rates. Given the possibility of lower tax rates under the new administration, there have been many questions around what a potential tax cut could mean on C’s ability to re-capture some of its DTA. Management noted that the impact will depend on 1) the ultimate tax rate, 2) either a worldwide or territorial regime, and 3