Revenue Performance - Net revenue for the third fiscal quarter was $581.0 million, an increase of $59 million or 11.3% compared to $522.0 million in the same quarter of the previous year[8]. - Net revenue for the three months ended December 27, 2025, was $580,994,000, an increase of 11.2% compared to $522,040,000 for the same period in 2024[21]. Profitability - Gross profit as a percentage of net revenue for factory-built housing was 21.7%, down from 23.6% in the same period last year[8]. - Financial services gross profit as a percentage of net revenue was 65.2%, up from 55.5% in the same period last year[8]. - Gross profit for the three months ended December 27, 2025, was $135,921,000, representing a gross margin of 23.4%, compared to $129,950,000 and a gross margin of 24.9% for the same period in 2024[21]. - Income before income taxes was $58 million, a decrease of $11 million or 16.9% compared to $69 million in the same period last year[8]. - Net income for the three months ended December 27, 2025, was $44,067,000, a decrease of 22% from $56,462,000 in the same period in 2024[21]. - Net income per diluted share attributable to common stockholders was $5.58, down 19.1% from $6.90 in the prior year quarter[8]. - Basic net income per share for the three months ended December 27, 2025, was $5.65, down from $6.97 for the same period in 2024[21]. Sales and Backlogs - Home sales volume increased by 3.2%, while capacity utilization decreased to approximately 70% from 75% in the same quarter of the prior year[8]. - Backlogs totaled $160 million at the end of the quarter, representing 4-6 weeks of production[8]. - American Homestar contributed $42 million to net revenue with 343 homes sold, alongside $6.9 million in incremental SG&A expenses[8]. Financial Position - Total assets increased to $1,472,195,000 as of December 27, 2025, compared to $1,406,645,000 as of March 29, 2025[19]. - Total liabilities rose to $382,976,000 as of December 27, 2025, up from $342,063,000 as of March 29, 2025[19]. - Cash and cash equivalents decreased to $224,616,000 as of December 27, 2025, from $356,225,000 as of March 29, 2025[19]. - Capital expenditures for the nine months ended December 27, 2025, were $27,360,000, compared to $15,253,000 for the same period in 2024[23]. Stock and Shareholder Returns - Stock repurchases amounted to approximately $44 million in the quarter, with about $98 million remaining for future repurchases[8]. - The company reported a total of 7,801,698 basic weighted average shares outstanding for the three months ended December 27, 2025[21]. Financial Services - The financial services segment showed strong results, reflecting improved profitability in the insurance operation[9]. - The company’s finance subsidiary, CountryPlace Mortgage, continues to offer conforming and non-conforming mortgages, contributing to its overall financial performance[16].

Financial Performance - Net income for Q4 2025 was $12.2 million, a 26% increase from $9.6 million in Q3 2025, with diluted EPS rising to $0.69 from $0.54[3] - Total revenue for the three months ended December 31, 2025, reached $78,201 thousand, up from $61,836 thousand in the prior year, representing a growth of 26.4%[44] - For the twelve months ended December 31, 2025, total revenue was $282,995 thousand, a 24% increase from $228,128 thousand in 2024[47] - Net income for the three months ended December 31, 2025, was $12,159 thousand, compared to $9,240 thousand in the same quarter of 2024, indicating a year-over-year increase of 31.3%[44] - The Company reported a 35% increase in net interest income for the year ended December 31, 2025, totaling $200.9 million compared to $149.0 million in 2024[12] Asset and Deposit Growth - Total deposits grew by $460 million, or 8%, to $6.6 billion at December 31, 2025, with noninterest-bearing deposits increasing by $316 million, or 28%[4] - Total assets increased to $7,526,409 thousand as of December 31, 2025, up from $7,439,642 thousand in the previous quarter, representing a growth of 1.17%[51] - The total assets of the company increased to $7,207,533 thousand as of December 31, 2025, compared to $6,556,386 thousand a year earlier, reflecting a growth of 9.9%[74] - Assets under management (AUM) in the Wealth Management Division grew by $1.2 billion to $13.1 billion at December 31, 2025, with new business inflows totaling $291 million in Q4 2025[9] Loan Performance - Total loans increased by $738 million, or 13%, to $6.3 billion, with commercial and industrial lending accounting for 55% of new business originations[7] - Total loans reached $6,258,623 thousand, an increase of 3.84% from $6,027,265 thousand in the prior quarter[51] - The total commercial loans for the twelve months ended December 31, 2025, were $1,821,138,000, significantly higher than $1,041,172,000 in 2024[62] - Nonperforming assets decreased to $68.2 million, or 0.91% of total assets, at December 31, 2025, down from $84.1 million, or 1.13% of total assets, at September 30, 2025[30] Interest Income and Margin - Net interest income rose by $6.0 million, or 12%, to $56.5 million for Q4 2025, driven by improved cost on average interest-bearing liabilities and a net interest margin (NIM) increase to 3.08%[5] - Net interest income for the three months ended December 31, 2025, was $56,771 thousand, up from $50,809 thousand in the prior quarter, representing an increase of 11.5%[70] - The net interest margin improved to 3.08% for the three months ended December 31, 2025, compared to 2.81% in the previous quarter, indicating enhanced profitability[70] - The net interest margin (tax-equivalent basis) improved to 3.08% for the three months ended December 31, 2025, compared to 2.46% in the same quarter of 2024, reflecting a 25.4% increase[44] Credit Loss Provisions - Provision for credit losses increased to $23.5 million for the year ended December 31, 2025, a 214% increase from $7.5 million in 2024[12] - The provision for credit losses increased to $7.7 million in Q4 2025, compared to $4.8 million in Q3 2025 and $1.7 million in Q4 2024, primarily due to specific reserves related to two multifamily loans and one C&I loan[31] - The allowance for credit losses was $71.0 million, or 1.14% of total loans, as of December 31, 2025, compared to $68.6 million at September 30, 2025[32] Efficiency and Cost Management - Total operating expenses for Q4 2025 were $53.5 million, up from $52.3 million in Q3 2025 and $47.9 million in Q4 2024, driven by expansion efforts in New York City and Long Island[27] - The efficiency ratio improved to 68.93%, down from 73.73% in the prior quarter, indicating better cost management[81] - The GAAP efficiency ratio improved to 68.46% for the three months ended December 31, 2025, down from 77.40% in the same quarter of 2024, showing a positive trend in operational efficiency[44] Shareholder Returns - The Company declared a cash dividend of $0.05 per share on December 18, 2025, payable on February 26, 2026[36] - Tangible book value per share increased by 10% to $34.99 at December 31, 2025, compared to $31.89 at the end of 2024[9] - Book value per share rose to $37.49, compared to $36.62 in the previous quarter, indicating an increase of 2.37%[57]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________________________________________ FORM 10-Q _____________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-12822 ____________________ ...

Financial Performance - For Q4 2025, Catalyst Bancorp reported net income of $456,000, or $0.13 per diluted share, compared to $489,000, or $0.13 per diluted share in Q3 2025[1]. - Net income for the year ended December 31, 2025, was $2,052,000, a significant recovery from a net loss of $3,089,000 in the previous year[39]. - The return on average assets for Q4 2025 was 0.65%, down from 0.91% in Q4 2024, indicating a decline in profitability relative to assets[39]. Loan and Asset Management - Total loans increased to $170.2 million at December 31, 2025, up $5.4 million, or 3%, from $164.8 million at September 30, 2025[3]. - The commercial and industrial loans segment saw significant growth, increasing by $5.5 million, or 22%, primarily driven by the oilfield services sector[4]. - Total loans as of December 31, 2025, were $167,335,000, a slight increase from $167,187,000 in the previous year[39]. - Non-performing assets rose to $2.7 million, representing 0.95% of total assets, up from $1.9 million, or 0.67%, at the end of Q3 2025[7]. - The allowance for credit losses on loans was $2.4 million, or 1.39% of total loans, compared to 1.45% in the previous quarter[8]. Deposits and Funding - Total deposits decreased by $1.1 million, or 1%, to $185.3 million at December 31, 2025, with a loan-to-deposit ratio of 92%[10]. - Total deposits amounted to $185,274 thousand, with non-interest-bearing deposits at $29,991 thousand and interest-bearing deposits at $155,283 thousand[35]. - Total deposits increased to $181,537,000 as of December 31, 2025, compared to $170,991,000 in the previous year, reflecting a growth of 6.67%[39]. Interest Income and Margin - The net interest margin for Q4 2025 was 3.91%, up three basis points from the prior quarter, with net interest income rising by $57,000, or 2%[18][19]. - Total interest income for Q4 2025 was $3,548,000, an increase from $3,511,000 in Q4 2024, representing a year-over-year growth of 1.05%[39]. - Net interest income after provision for credit losses for Q4 2025 was $2,411,000, compared to $2,472,000 in Q4 2024, reflecting a decrease of 2.47%[39]. - Total interest-earning assets increased to $255,254 thousand with a net interest income of $2,507 thousand, resulting in a net interest margin of 3.91% for the fourth quarter of 2025[1][2]. Non-Interest Income and Expenses - Non-interest income for the fourth quarter of 2025 totaled $362,000, up $47,000 or 15% compared to the third quarter of 2025[3]. - Bank-owned life insurance income increased by $11,000 or 9% for the fourth quarter of 2025 compared to the prior quarter[4]. - Non-interest expense for the fourth quarter of 2025 was $2.2 million, reflecting a $20,000 or 1% increase from the previous quarter[5]. - Salaries and employee benefits expense rose to $1.3 million, an increase of $22,000 or 2% due to new hires and annual raises[6]. - Total non-interest expense for Q4 2025 was $2,222,000, slightly higher than $2,038,000 in Q4 2024, marking an increase of 9.05%[39]. Credit Loss Provisions - The provision for credit losses was $96,000 in Q4 2025, driven by increased construction loan commitments and overall loan growth[8]. - The provision for credit losses for Q4 2025 was $96,000, compared to a reversal of $36,000 in Q3 2025, indicating a shift towards increased provisions[41]. - The allowance for credit losses was $2,367 thousand, slightly improved from $2,397 thousand in the previous quarter[35]. Shareholder Equity - The company reported a total shareholders' equity of $81,725 thousand as of December 31, 2025, compared to $81,585 thousand at September 30, 2025[35]. Efficiency and Cost Management - The efficiency ratio for Q4 2025 was 77.40%, an improvement from 79.67% in Q3 2025, suggesting better cost management[39].

Rhinebeck Bancorp, Inc. Reports Results for the Quarter and Year Ended December 31, 2025 NEWS PROVIDED BY Rhinebeck Bancorp, Inc. Poughkeepsie, New York, January 29, 2026 /ACCESSWIRE/ Rhinebeck Bancorp, Inc. (the "Company") (NASDAQ: RBKB), the holding company of Rhinebeck Bank (the "Bank"), reported net income for the fourth quarter of 2025 of $2.3 million, compared to net income of $2.7 million for the third quarter of 2025 and a net loss of $2.7 million for the fourth quarter of 2024. Diluted earnings per ...

Financial Position - The company ended 2025 with cash, investments, and restricted cash totaling $125.2 million, sufficient to support operations into 2027[4]. Licensing and Milestones - The company achieved a $10 million milestone in January 2026 under its licensing agreement with Novo Nordisk, with potential for an additional $20 million in milestone payments throughout 2026[4]. Clinical Trials and Development - The SONATA-HCM pivotal Phase 3 study for sotagliflozin is targeting enrollment of 500 patients, with expected completion in mid-2026 and topline results anticipated in Q1 2027[9]. - The FDA has raised no objections to advancing pilavapadin into Phase 3 development for diabetic peripheral neuropathic pain (DPNP)[10]. - Pilavapadin has shown clinically meaningful efficacy with a two-point average daily pain score reduction from baseline at 12 weeks[11]. - The company is preparing to potentially resubmit the NDA for ZYNQUISTA® (sotagliflozin) in type 1 diabetes in 2026, pending safety data from the STENO1 study[13]. Stock Offering - The company announced a public offering of its common stock and a concurrent private placement to its largest stockholder, Invus, L.P.[5].

Revenue Performance - Revenue for the three months ended December 31, 2025, decreased by $2.0 million to $556.0 million, with a decline in sales volume primarily affecting the Gypsum Wallboard segment [110]. - Revenue for the nine months ended December 31, 2025, increased by $39.3 million, or 2%, to $1,829.6 million, with higher sales volumes contributing positively [122]. - Cement Revenue was $1,053.7 million, a 7% increase for the nine months ended December 31, 2025, driven by higher gross sales prices and Sales Volume [137]. - Concrete and Aggregates Revenue increased 21% to $236.9 million for the nine months ended December 31, 2025 [142]. - Gypsum Wallboard Revenue was $580.9 million, a 10% decrease for the nine months ended December 31, 2025, due to lower gross sales prices and Sales Volume [148]. - Recycled Paperboard Revenue decreased 15% to $47.8 million for the three months ended December 31, 2025, attributed to lower sales volume and gross sales prices [151]. - Recycled Paperboard Revenue decreased 8% to $147.5 million for the nine months ended December 31, 2025, driven by lower gross sales prices and sales volume [153]. Cost and Earnings Analysis - Cost of Goods Sold increased by $14.9 million, or 4%, to $395.1 million for the same period, driven by higher operating costs [111]. - Gross Profit decreased by 10% to $160.9 million, with a gross margin decline to 29% due to lower sales prices and increased operating costs [112]. - Net Earnings for the three months ended December 31, 2025, decreased by 14% to $102.9 million [120]. - Cost of Goods Sold for the nine months increased by $61.5 million, or 5%, to $1,283.3 million, primarily due to higher sales volume and operating costs [123]. - Gross Profit for the nine months decreased by 4% to $546.2 million, with a gross margin decline to 30% attributed to higher operating costs [124]. - Net Earnings decreased 8% to $363.6 million for the nine months ended December 31, 2025 [131]. - Operating Earnings decreased 18% to $221.3 million due to lower gross sales prices and sales volume, along with higher operating costs [149]. Operating Performance - Operating Earnings for Concrete and Aggregates were approximately $15.5 million, a 2,532% increase for the nine months ended December 31, 2025 [143]. - Cement Operating Earnings increased by $0.4 million to $292.2 million for the nine months ended December 31, 2025 [138]. - Operating Margin for Gypsum Wallboard decreased to 35% for the three months ended December 31, 2025, primarily due to lower gross sales prices and higher operating costs [147]. - Operating Earnings for the three months increased 2% to $11.2 million, primarily due to lower operating costs, which increased earnings by $4.3 million [152]. - Operating Earnings for the nine months increased 15% to $31.8 million, mainly due to lower operating costs, which increased earnings by $11.3 million [154]. Cash Flow and Capital Management - Net Cash Provided by Operating Activities increased by $26.3 million to $512.0 million during the nine months ended December 31, 2025 [160]. - Working Capital increased by $367.0 million to $790.6 million at December 31, 2025, primarily due to higher cash and lower accounts payable [161]. - Net Cash Used in Investing Activities was approximately $294.7 million, compared to $171.9 million during the same period in 2024, mainly for facility modernization [165]. - Net Cash Provided by Financing Activities was $181.2 million, a significant increase from a net cash used of $317.7 million in the prior year [166]. Debt and Share Repurchase - The debt-to-capitalization ratio increased to 54.4% at December 31, 2025, compared to 46.1% at March 31, 2025 [167]. - Share repurchases totaled 1,401,886 shares at an average price of $221.34 per share for the nine months ended December 31, 2025 [177]. - The company has repurchased approximately 52.6 million shares since becoming publicly held in April 1994, with a cumulative total of 55.9 million shares authorized for repurchase [177]. - The average price per share for repurchases in Quarter 1 was $219.64, in Quarter 2 was $225.24, and in Quarter 3 was $219.90 [177]. Capital Expenditures and Future Projections - Capital expenditures for the nine months ended December 31, 2025, amounted to $294.68 million, a significant increase from $146.98 million in the same period of 2024 [180]. - Estimated capital expenditures for fiscal 2026 are projected to range from $430.0 million to $450.0 million, focusing on facility expansions and modernization projects [180]. Risk Factors - A hypothetical 100 basis point increase in interest rates on $285.0 million of borrowings under the Term Loan would increase annual interest expense by approximately $2.9 million [184]. - The company is exposed to commodity price risks, particularly in coal, coke, natural gas, and power, and aims to mitigate this through contracts and alternative fuels [185]. - The company’s operations are subject to various risks, including fluctuations in public infrastructure expenditures and changes in economic conditions, which may impact future performance [182]. - The company has not utilized derivative financial instruments to manage interest rate risks as of December 31, 2025 [184].

Financial Performance - Fourth Quarter 2025 EPS was $1.28, an 11% increase from $1.15 in 4Q 2024, with a net income of $56.3 million compared to $55.9 million in the prior year[1][2] - Net interest income decreased to $92.1 million from $94.3 million in 4Q 2024, with a net interest margin of 4.30%, down from 4.55% in the prior year[1][13] - Total revenue for the three months ended December 31, 2025, was $172,611, a slight decrease from $174,613 in September 2025 and an increase from $159,598 in December 2024[55] - Adjusted total revenue for the year ended December 31, 2025, was $534,550, compared to $503,104 in 2024, reflecting growth in revenue[55] Loan and Deposit Growth - Ending loans reached $7.12 billion, a 16% increase year-over-year from $6.11 billion in 4Q 2024, and a 7% increase from $6.67 billion in 3Q 2025[1][8] - Consumer fintech loans totaled $1.10 billion, representing 15.1% of total loans, marking a 142% increase from $454.4 million in 4Q 2024[1][9] - Average deposits were $7.60 billion, a 1% increase from $7.55 billion in 4Q 2024, with 95% of deposits sourced from fintech partnerships[1][10][11] - Total deposits reached $8,165,496 thousand, reflecting a 5.38% increase from $7,746,046 thousand year-over-year[35] Credit Quality - Provision for credit losses on non-consumer fintech loans was $0.9 million in 4Q 2025, a decrease from $5.7 million in 3Q 2025[15][16] - The allowance for credit losses was $66.2 million as of December 31, 2025, up from $44.9 million at the end of 2024, with consumer fintech loans coverage at 2.84% and non-fintech loans at 0.58%[17] - Total net charge-offs for Q4 2025 were $39.2 million, a decrease from $40.8 million in Q3 2025, resulting in a charge-off ratio of 2.29%[18] - Non-fintech loans net charge-offs were $0.6 million for Q4 2025, down from $3.3 million in Q3 2025, with a charge-off ratio of 0.04%[19] - Nonperforming loans to total loans decreased to 1.04% as of December 31, 2025, down from 1.35% in September 2025 and 0.55% in December 2024[46] Non-Interest Income - Non-interest income accounted for 46.7% of total revenue, up from 40.9% in 4Q 2024, with fintech fees contributing 20.8% of total revenue[1][4] - Non-interest income for Q4 2025 was $80.5 million, driven by a $3.7 million increase in fintech fees, which accounted for 27% of total revenues excluding credit enhancement income[21] - Non-interest income as a percentage of total revenue (excluding credit enhancement) was 30.4% for the three months ended December 31, 2025, compared to 30.1% in September 2025 and 26.9% in December 2024[55] - Fintech fees as a percentage of total revenue (excluding credit enhancement) were 27.2% for the three months ended December 31, 2025, compared to 26.0% in September 2025 and 25.0% in December 2024[55] Shareholder Returns - Share repurchases totaled $150 million for 2,173,518 shares, representing 5% of issued shares, at an average cost of $69.01[1][4] - The company repurchased 2,173,518 shares at an average cost of $69.01 per share, totaling $150.0 million in Q4 2025, with a full-year capital return of $375.0 million[29] Guidance and Outlook - The company initiated guidance for 2026 at $5.90 EPS, targeting at least $1.75 for 4Q 2026, and a preliminary outlook of $8.25 for 2027[3] Efficiency and Expenses - Total non-interest expense increased by $4.4 million, or 8%, from Q4 2024, primarily due to legal costs related to a settlement[22] - The efficiency ratio was 42.5% for Q4 2025, compared to 41.8% in Q3 2025 and 40.2% in Q4 2024[23] Asset and Liability Management - Total assets increased to $9,352,425 thousand as of December 31, 2025, up from $8,727,543 thousand a year earlier, representing a growth of 7.15%[35] - Total liabilities increased to $8,662,629 thousand as of December 31, 2025, up from $7,937,760 thousand a year prior, marking a growth of 9.14%[35] - Shareholders' equity decreased to $689,796 thousand from $789,783 thousand year-over-year, a decline of 12.59%[35] Capital Adequacy - The total allowance for credit losses on loans to total loans was 0.93% as of December 31, 2025, compared to 0.96% in September 2025 and 0.73% in December 2024[46] - Total capital to risk-weighted assets ratio was 12.19% as of December 31, 2025, compared to 15.13% in September 2025, indicating a decrease in capital adequacy[48]

Financial Performance - Net income attributable to common shareholders for Q4 2025 was $41.9 million, or $0.48 per share, with net investment income of $93.6 million[2]. - Full-year 2025 net income attributable to common shareholders was $86.1 million, down from $119.2 million in 2024, with diluted earnings per share of $0.99[7]. - For the quarter ended December 31, 2025, net income attributable to common shareholders was $41,907,000, a decrease of 12.8% from $47,841,000 in the previous quarter[38]. - Basic earnings per common share for the quarter ended December 31, 2025, was $0.48, down from $0.55 in the previous quarter, a decrease of 12.7%[38]. - The company reported a net interest expense of $19,482,000 for the year ended December 31, 2025, compared to a net interest expense of $79,396,000 in 2024, showing improvement[40]. Investment and Loans - Loans acquired totaled $5.5 billion in unpaid principal balance (UPB), an 18% increase from the prior quarter[4]. - PMT acquired $3.7 billion in UPB of conventional conforming and non-Agency eligible loans, a 10% increase from the prior quarter[24]. - PMT generated approximately $528 million of net new investments in non-Agency senior and subordinate bonds during the year[7]. - Loan origination fees for the year ended December 31, 2025, were $12,525,000, down from $15,085,000 in 2024, a decrease of 16.9%[40]. Revenue and Expenses - Interest income for the Interest Rate Sensitive Strategies segment totaled $189.0 million, up from $173.8 million in the prior quarter[20]. - Interest income increased to $39.4 million from $33.1 million in the prior quarter, while interest expense rose to $33.1 million from $28.2 million[25]. - Total expenses for the year ended December 31, 2025, were $213,643,000, an increase from $191,546,000 in 2024, representing an increase of 11.5%[40]. - Segment revenues were $16.4 million, including net gains on loans acquired for sale of $7.2 million, net interest income of $6.3 million, and other income of $2.9 million[25]. - Segment expenses were $17.4 million, up from $13.7 million in the prior quarter, primarily due to increased private label securitization activity[26]. - Corporate revenues remained unchanged at $0.9 million, while corporate expenses increased to $15.7 million from $14.3 million in the prior quarter[27]. Assets and Liabilities - Total assets increased to $21.35 billion from $18.53 billion in the prior quarter[36]. - Loans held for investment at fair value rose to $8.53 billion from $5.98 billion in the prior quarter[36]. - Total liabilities increased to $19.46 billion from $16.65 billion in the prior quarter[36]. - Total shareholders' equity was $1.89 billion, slightly up from $1.88 billion in the prior quarter[36]. Tax and Fair Value - PMT recorded a tax benefit of $16.2 million, mainly due to net fair value declines on MSR and interest rate hedges[28]. - The company experienced a net loss of $77,612,000 in the change in fair value of mortgage servicing rights for the quarter ended December 31, 2025[38]. Shareholder Information - Book value per common share increased to $15.25 at December 31, 2025, up from $15.16 at September 30, 2025[4]. - The weighted average shares outstanding for the quarter remained stable at 87,017,000, consistent with the previous quarter[38]. - The weighted average fulfillment fee rate in the fourth quarter was 18 basis points, unchanged from the prior quarter[26]. Gains and Losses - The company reported net gains on investments and financings of $213,113,000 for the year 2025, significantly higher than $61,050,000 in 2024[40].

Financial Performance - Net income for Q4 2025 was $106.8 million, or $1.97 per share, on total net revenues of $538.0 million[2]. - Full-year 2025 net income was $501.1 million, a 61% increase from $311.4 million in 2024, with a return on equity of 12%[5]. - Total net revenue for 2025 was $2.0 billion, up 25% from $1.6 billion in 2024[5]. - Net income for the quarter ended December 31, 2025, was $106,831 thousand, a decrease of 41.1% compared to $181,503 thousand in the previous quarter[35]. - Basic earnings per share for the quarter was $2.05, down from $3.51 in the previous quarter, indicating a decline of 41.7%[35]. Loan Activity - Total loan acquisitions and originations reached $42.2 billion in unpaid principal balance (UPB), up 16% from the prior quarter and 18% year-over-year[3]. - PFSI's production of newly originated loans in 2025 totaled $145 billion in UPB, maintaining its position as a top lender in the nation[29]. - Total locks, including those for PMT, were $46.8 billion in UPB, up 8% from the prior quarter and 29% from Q4 2024[3]. - Loan origination fees for the quarter increased to $68,437 thousand, up from $61,696 thousand in the previous quarter, marking an increase of 12.4%[35]. Servicing Portfolio - Servicing portfolio grew to $733.6 billion in UPB, up 2% from Q3 2025 and 10% from Q4 2024[5]. - As of December 31, 2025, PFSI's total loans serviced amounted to $733.6 billion, an increase from $665.8 billion in the fourth quarter of 2024[17]. - Revenue from net loan servicing fees totaled $149.8 million, down from $241.2 million in the prior quarter and $189.3 million in Q4 2024[18]. Income Segments - Production segment pretax income was $127.3 million, up 4% from the prior quarter and 63% from Q4 2024[3]. - The servicing segment pretax income was $37.3 million, down from $157.4 million in the prior quarter[3]. - The servicing segment pretax income was $37.3 million, a significant decrease from $157.4 million in the prior quarter and $87.3 million in Q4 2024[17]. Expenses and Liabilities - Total expenses for the company were $403.6 million, up from $396.5 million in the prior quarter due to higher expenses in both production and servicing segments[26]. - Total expenses for the quarter were $403,600 thousand, an increase from $396,524 thousand in the previous quarter, reflecting a 1.7% rise[35]. - Total liabilities rose to $25,079,713 thousand as of December 31, 2025, compared to $21,193,234 thousand in the previous quarter, reflecting a 18.4% increase[33]. Assets and Equity - Total assets increased to $29,388,689 thousand as of December 31, 2025, up from $25,401,120 thousand in the previous quarter, representing a 11.6% increase[33]. - Average PMT shareholders' equity was $1.8 billion for Q4 2025, unchanged from Q3 2025 and slightly down from Q4 2024[24]. - Retained earnings increased to $4,212,101 thousand as of December 31, 2025, compared to $4,121,201 thousand in the previous quarter[33]. Interest and Tax - Net interest expense increased to $19.2 million compared to $15.1 million in the prior quarter and $19.5 million in Q4 2024[20]. - The effective tax rate for the company was 20.5 percent, with a future expected tax provision rate of 25.1 percent[27]. Other Financial Activities - Issued $2.35 billion of unsecured senior notes with maturities ranging from 2032 to 2034[5]. - The company completed the sale of an MSR portfolio totaling $24.4 billion in UPB[5]. - The company recorded net valuation-related gains of $1.0 million, consisting of MSR fair value gains of $40.4 million and hedging losses of $39.4 million[18].