Financial Data and Key Metrics Changes - For the full year 2025, adjusted net investment income (NII) was $1.22 per share, down from $1.52 in 2024 [4] - Annualized net asset income (NAI) return on equity (ROE) for the year was 12.3%, compared to 14.5% in 2024 [5] - Adjusted NAI for Q4 2025 was $0.25 per share, down from $0.30 in Q3 2025 and $0.36 in Q4 2024 [5] - Net asset value (NAV) declined 19% to $7.07 per share as of December 31, 2025, from $8.71 as of September 30, 2025 [6] Business Line Data and Key Metrics Changes - Non-accrual debt investments represented 4% of the portfolio at fair market value and 9.7% at cost, compared to 5.6% at fair market value and 14.4% at cost for Q4 2024 [6] - The portfolio had a fair market value of $1.5 billion invested across 141 companies, with 92.4% in senior secured loans [12] - The average size of new investments in 2025 was $5.8 million, down from $11.7 million at the end of 2024 [13] Market Data and Key Metrics Changes - The weighted average effective yield of the portfolio was 11.1%, down from 11.5% in the previous quarter [13] - Investments during Q4 had a weighted average yield of 9.7%, while exited investments had a yield of 11.1% [13] Company Strategy and Development Direction - The company aims to improve credit quality by focusing on first lien loans, which now account for 87.4% of the portfolio [24] - The strategy includes building a diversified portfolio to reduce concentration risk and leveraging BlackRock's resources [24][25] - The company is actively managing challenged investments to optimize recovery values [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing write-downs but emphasized ongoing efforts to manage the investment portfolio for attractive returns [22] - The company is monitoring the software sector for potential AI disruptions and is focusing on investments that can benefit from such changes [17] Other Important Information - The board declared a first-quarter dividend of $0.17 per share, payable on March 31, 2026 [11] - The company repurchased 515,869 shares during Q4 at an average price of $5.84 per share [11] Q&A Session Summary Question: At what point does it make sense to take more aggressive strategic adjustments? - Management believes the best path forward is to focus on improving credit quality and executing the current investment strategy, which includes increasing first lien loans and diversifying the portfolio [28][29] Question: How should investors view the restructuring of assets? - Management noted that restructurings can vary and that recovery is not always linear, emphasizing the importance of a robust process for managing challenged investments [32] Question: Was there a change in valuation procedures that led to the recent NAV drawdowns? - Management confirmed that there were no changes to the valuation policy and that the recent write-downs were concentrated among a few specific investments [36][39]

Keeping an eye on shares of Blue Al. You can see uh it and other alternative asset managers stocks have been under pressure. This certainly was the case yesterday after the firm said it would halt quarterly redemptions in its retail focused debt fund, opting instead to return capital via episodic payouts as it did sell down 1.4% billion of assets to allow for that.The move did reignite concerns around liquidity and valuation for many private credit vehicles. Joining us now in a CNBC exclusive is Blue Isles ...

Core Viewpoint - KeyCorp's recent earnings report shows a positive trend with adjusted earnings per share exceeding estimates, driven by higher net interest income (NII) and non-interest income, despite rising expenses and provisions [2][4]. Financial Performance - KeyCorp's Q4 2025 adjusted earnings per share from continuing operations was 41 cents, beating the Zacks Consensus Estimate of 38 cents, reflecting a 7.9% increase year-over-year [2]. - Total revenues for Q4 2025 increased by 12.5% year-over-year to $2 billion, surpassing the consensus estimate of $1.94 billion [5]. - For the full year 2025, total revenues were $7.51 billion, up 16.4% from the previous year, exceeding the consensus estimate of $7.43 billion [5]. Income and Expenses - Net interest income (TE basis) rose 15.3% year-over-year to $1.22 billion, with net interest margin (NIM) expanding 41 basis points to 2.82% [6]. - Adjusted non-interest income was $782 million, an increase of 8.3%, primarily due to higher investment banking and corporate services income [7]. - Non-interest expenses increased nearly 1% to $1.24 billion, attributed to rising costs across most components [7]. Credit Quality - The provision for credit losses was $108 million, significantly up from $39 million in the prior-year quarter, while the allowance for loan and lease losses was $1.43 billion, up 1.3% [9]. - Net loan charge-offs as a percentage of average total loans declined 4 basis points year-over-year to 0.39% [9]. - Non-performing assets as a percentage of the portfolio decreased by 15 basis points to 0.59% [10]. Capital Ratios - KeyCorp's tangible common equity to tangible assets ratio improved to 8.4% as of December 31, 2025, up from 7% in the prior year [11]. - The Tier 1 risk-based capital ratio was 13.4%, down from 13.7%, while the Common Equity Tier 1 ratio decreased to 11.7% from 11.9% [11]. 2026 Outlook - Management anticipates total revenues to increase nearly 7% year-over-year, with average loan balances expected to grow by 1-2% [12]. - Net interest income is projected to rise by approximately 8-10% in 2026, with NIM expected to reach 3.00%-3.05% by the end of Q4 2026 [13]. - Adjusted non-interest income is expected to grow by 5-6% year-over-year, driven by fee growth in key business areas [14]. Long-term Outlook - Management expects NIM to exceed 3.25% by Q4 2027, with return on tangible common shareholders' equity projected to be in the range of 16-19% [16]. Industry Performance - KeyCorp operates within the Zacks Banks - Major Regional industry, where M&T Bank Corporation has seen a 5.7% increase in stock price over the past month, reporting revenues of $2.48 billion for the last quarter, a year-over-year change of +3.8% [21].

Financial Data and Key Metrics Changes - In Q4 2025, adjusted net investment income (NII) per share was $0.36, consistent with the previous quarter, resulting in a return on equity (ROE) of 9.7% [10] - Net asset value (NAV) per share decreased to $14.81 from $14.89 in the prior quarter, primarily due to write-downs on a few watchlist names, partially offset by share repurchases [21][22] - The company repurchased $148 million of stock, the largest repurchase in its history, which was accretive to NAV per share by approximately $0.05 [22] Business Line Data and Key Metrics Changes - OBDC had fundings of $820 million against $1.4 billion of repayments, resulting in lower net leverage at 1.19 times [13] - The company executed a sale of a portfolio of assets totaling $1.4 billion, including $400 million from OBDC, at book value, reflecting strong demand from institutional investors [6][9] Market Data and Key Metrics Changes - The company reported that interest coverage ratios remain healthy at approximately 2 times, with a non-accrual rate decreasing to 1.1% at fair value [17][18] - Revenue and EBITDA growth across the portfolio accelerated in the second half of the year, with overall revenue and EBITDA increasing 8% and 11% year-over-year in Q4 [16][17] Company Strategy and Development Direction - The company plans to continue its buy-and-hold lending philosophy while optimizing its capital structure to reduce costs and enhance flexibility [8][11] - The recent asset sales are seen as a strategic move to provide liquidity to shareholders and improve portfolio diversity, while also positioning the company to capitalize on attractive risk-adjusted opportunities [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the quality and resilience of the portfolio, despite anticipated impacts from lower base rates and tighter spreads on new and repriced assets [27][28] - The company does not expect broad-based credit issues in its portfolio, contrasting with market skepticism reflected in stock prices [28][29] Other Important Information - The board declared a first-quarter base dividend of $0.37, to be paid on April 15, 2026, supported by healthy spillover income of $0.36 per share [21][22] - The company received a Moody's upgrade to Baa2, reflecting strong portfolio and liability management capabilities [24][25] Q&A Session Summary Question: Is OBDC II halting redemptions permanently? - Management clarified that they are not halting redemptions but are accelerating the return of capital to investors, with a 30% distribution planned [32][33] Question: What is the most accretive use of capital today? - Management indicated that they are evaluating capital deployment opportunities while also considering stock buybacks due to the stock trading below book value [37][40] Question: What is the appetite for new software loan purchases? - Management expressed confidence in their software investments and indicated a discriminating approach to new purchases, expecting the software percentage in the portfolio to modestly decline [66][68] Question: How does the mark received on the asset sale compare with previous fair value marks? - Management stated that the assets were sold at their marks, consistent with previous valuations, reinforcing the integrity of their valuation process [82][83] Question: What considerations will the board take into account for setting the common dividend going forward? - Management noted that the board will evaluate earnings, credit performance, and market conditions when discussing future dividends, maintaining a stable base dividend approach [87][89]

Core Insights - Bread Financial is experiencing a resilient middle-America consumer base, with gradual improvement in credit trends and an anticipated inflection toward loan growth as new partner programs scale [4] Credit Metrics - January credit results were described as "good numbers" and aligned with expectations, with a seasonal increase expected in February and metrics projected to move "near 8" [1] - Customers have adjusted their household budgets due to compounded inflation of 30% to 35% post-COVID, leading to a cautious approach in spending [2] - The company expects continued improvement in credit quality and a resumption of spending as inflation moderates and the labor market remains stable [2] Customer Demographics - Bread primarily serves near-prime to prime customers, with new vintages underwritten having an average income of approximately $95,000, while the overall portfolio is just under $80,000 [3] Loan Growth and Partner Programs - Loan growth is expected to inflect as partner programs like Raymour & Flanigan, Cricket Wireless, and Vivint scale, with guidance for low single-digit average loan growth and higher ending loans later in the year [6][7] - The company reported flat year-over-year growth in January, which is viewed as an early sign of an expected inflection to growth [6] Pricing and Margin - Pricing changes implemented since early 2024 are expected to protect net interest margin (NIM), which is projected to remain flat to slightly higher [5][11] - Operational savings are being reinvested into technology and AI initiatives, supporting the goal of positive operating leverage as revenue grows [11] Capital Management - The company plans to issue up to $300 million in preferred stock and is pursuing a merger of its two legacy banks to enhance funding flexibility [5][13] - Bread has reduced its debt from $900 million at the start of last year to $500 million at year-end and has $240 million remaining in share repurchase authorization [14] Product Offerings - Bread Pay and buy now, pay later (BNPL) services are expanding, catering to consumers who prefer to pay over time but may not qualify for traditional credit [9][10] - The existing portfolio is expected to see gradual improvement due to credit strategies and consumer adaptation, with new vintages carrying lower loss rates [9]

Core Insights - In 2025, Capital One Financial Corporation (COF) experienced both ongoing stress and some stabilization in credit quality across its major lending portfolios, particularly in the credit card segment, which faced elevated net charge-off (NCO) and delinquency rates early in the year [1] Credit Quality Performance - By late 2025, credit quality indicators showed improvement, with the overall credit card NCO rate declining to 5.09% from 5.88% in 2024, and the domestic credit card NCO rate decreasing by 79 basis points year over year to 5.12% [2] - The 30-plus day performing delinquency rate in the Domestic Credit Card segment fell to 3.99% in 2025, down from 4.53% in 2024 [2] - The improvement in credit quality was attributed to better performance in key loan portfolios and strategic risk management shifts, leading to declining NCO and delinquency rates [3] Acquisition Impact - The acquisition of Discover Financial contributed significantly to Capital One's credit quality improvement by integrating a portfolio with historically lower loss and delinquency trends, thus diversifying the loan mix [4] Industry Comparison - At the end of 2025, Ally Financial reported non-performing loans of $1.37 billion, down 8.1% from 2024, with an NCO rate decline to 1.28% from 1.48% [6] - OneMain's provision for finance receivable losses decreased by 2.1% year over year in 2025, while its allowance ratio increased to 11.54% from 11.48% in 2024 [8] Stock Performance and Valuation - Capital One's shares have decreased by 1.2% over the past six months, contrasting with the industry's growth of 1.9% [9] - The Zacks Consensus Estimate indicates year-over-year earnings growth of 3.1% for 2026 and 22.8% for 2027, with revised earnings estimates for 2026 at $20.21 and for 2027 at $24.81 [11] - Currently, Capital One trades at a 12-month forward price-to-earnings (P/E) ratio of 10.33X, above the industry average of 9.27X [12]

Some of the stuff that's kind of resonated with what Joanna is saying has been with investors in ETFs who are trying to figure out ways to enhance that yield. Have you seen any signs of stress in in your mind with regard to maybe possibilities for concern down the line because of deteriorating credit quality. Is is the economy flashing some signs that maybe things are slowing down a little bit.How exactly does the macro picture shape up given what we are seeing in terms of a tilt towards income strategies. ...

Core Insights - Flagstar Financial, Inc. (FLG) reported fourth-quarter 2025 adjusted earnings per share of 6 cents, surpassing the Zacks Consensus Estimate of 3 cents, and improved from a loss of 34 cents in the same quarter last year [1][2] - The results were driven by an increase in net interest income (NII), a significant reduction in provision for credit losses, and lower expenses, although lower non-interest income posed a challenge [1][9] Financial Performance - The net income available to common shareholders (GAAP basis) was $21 million, a recovery from a net loss of $196 million in the prior-year quarter [2] - Quarterly revenues reached $557 million, exceeding the Zacks Consensus Estimate by 4.3%, but declined 10.9% year over year [3] - For the full year 2025, revenues totaled $1.9 billion, reflecting a 28.6% increase from the previous year [3] - NII was reported at $467 million, a 1% year-over-year increase, with a net interest margin (NIM) of 2.14%, expanding by 41 basis points [3][8] - Non-interest income fell to $90 million, down 45% from the prior-year quarter, primarily due to the absence of gains from mortgage servicing operations and lower fee income [4][8] - Non-interest expenses decreased by 29% year over year to $509 million, with adjusted operating expenses down 17% to $462 million [4] Loan and Deposit Trends - Total loans and leases held for investment decreased by 3% sequentially to $60.7 billion as of December 31, 2025 [5] - Total deposits also declined by 5% sequentially to $66 billion as of the same date [5] Credit Quality - Non-accrual loans totaled $3 billion, slightly higher than the previous year [6] - Net charge-offs were $46 million, a significant drop of 79% from the prior-year quarter [6] - The provision for credit losses was reduced to $3 million from $145 million in the year-ago quarter, indicating stabilization in credit trends [6] Capital Ratios - As of December 31, 2025, the common equity tier 1 ratio improved to 12.83% from 11.83% a year earlier [7] - The total risk-based capital ratio increased to 16.23% from 15.14% in the prior-year quarter [7] - The leverage capital ratio rose to 9.22% from 7.68% a year ago, reflecting enhanced capital strength [7]

Investor Presentation Nasdaq: FISI Fourth Quarter 2025 January 29, 2026 Important Information Safe Harbor Statement & Other Information Statements contained in this presentation which are not historical facts and which pertain to future operating results of Financial Institutions, Inc. (the "Company") and its subsidiaries constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Similarly, statements that describe the objectives, plans or goals of th ...

Financial Data and Key Metrics Changes - The company reported net income for Q4 2025 of $12.3 million, or $0.61 per diluted share, a 24% increase from Q4 2024 [3] - For the full year, net income was $46.2 million, or $2.64 per diluted share, compared to $31.7 million, or $2.01 per diluted share for 2024 [4] - The return on assets (ROA) for Q4 was 1.14%, improving to 1.42% when excluding one-time expenses [5] Business Line Data and Key Metrics Changes - Net interest income for Q4 totaled $36.5 million, a 5.5% increase from the linked quarter and a 16% increase from Q4 2024 [6] - The loan and lease portfolio grew by $68.7 million, representing an annualized growth rate of 8.7% during Q4, excluding newly acquired loans [7] - Non-interest income increased by $251,000, or 2.6%, from the linked quarter and by $869,000, or 9.6%, from Q4 2024 [8] Market Data and Key Metrics Changes - The company added $236 million in low-cost deposits from the acquisition of Farmers Savings Bank [14] - The loan-to-deposit ratio was 94.3%, slightly down from the linked quarter, with expectations to maintain it within the targeted range of 90%-95% [16] - The security portfolio totaled $685 million, representing 15.8% of the balance sheet, with unrealized losses declining to $45 million [17] Company Strategy and Development Direction - The company aims to focus on increasing tangible common equity and reducing reliance on wholesale funding, with a goal of mid-single-digit loan growth in 2026 [7][14] - Investments in technology and digital banking solutions are expected to enhance deposit growth and support loan growth [28][40] - The company plans to continue evaluating share repurchase opportunities as part of its capital management strategy [67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong earnings despite mixed economic conditions across the country [18] - Credit quality remains solid, with low delinquencies and a slight decrease in net charge-offs compared to the previous year [19] - The company anticipates a stable economic environment in Ohio and Southeastern Indiana, with no systemic signs of deterioration [18] Other Important Information - The company announced an increase in its quarterly dividend to $0.18 per share, reflecting confidence in its financial performance [8][18] - The efficiency ratio improved to 57.7% for the quarter, compared to 61.4% for the linked quarter [11] Q&A Session Summary Question: Loan growth outlook and composition - Management expects commercial loans to lead growth in 2026, with a focus on C&I and commercial real estate [26][27] Question: Digital channel growth potential - Management anticipates accelerated growth through digital channels but remains cautious about margin impacts [30][32] Question: Margin trends and rate cuts - The company expects a slight margin expansion in Q1 and further increases if rate cuts occur [36][37] Question: Expense run rate post-acquisition - First quarter expenses are expected to be in the range of $29 million, with some reductions anticipated after the Farmers conversion [39] Question: Credit quality and non-performing loans - An increase in non-performing loans was attributed to one isolated credit situation, with overall credit quality remaining stable [46][48] Question: Leasing revenue outlook - Leasing revenue is expected to be lumpy, with guidance for total non-interest income in Q1 around $7.8 million to $8.2 million [70]