Financial Data and Key Metrics Changes - The company reported a GAAP loss per share of $0.29 and core earnings per share of $0.23, with a significant non-cash goodwill impairment charge of $17.6 million or $0.51 per share impacting GAAP results [6][32] - GAAP and core net interest margins (NIM) expanded to 2.51% and 2.49% respectively, marking increases of 12 and 24 basis points quarter over quarter [9][32] - Average deposits increased by 7% year over year and about 1% quarter over quarter, with the loan to deposit ratio improving to 87% from 94% a year ago [11][32] Business Line Data and Key Metrics Changes - The company is focused on improving profitability through net interest margin expansion, particularly from real estate loans that are contractually set to reprice higher [8][10] - Approximately $511 million of loans are due to reprice 171 basis points higher in 2025, with expectations of generating $9 million in interest income for 2025 and $13 million for 2026 from these repricings [14][15] Market Data and Key Metrics Changes - The Asian markets account for about one-third of the company's branches, with $1.3 billion in deposits and $738 million in loans, indicating a 3% market share in a $40 billion market, suggesting significant growth potential [25][26] - The spread between the five-year FHLB advance and the three-month SOFR rate turned negative during the quarter, which may impact future net interest margins [26][27] Company Strategy and Development Direction - The company aims to enhance profitability, maintain credit discipline, and preserve strong liquidity and capital, with a focus on contractual loan repricing to drive net interest margin expansion [6][32] - The company plans to expand its branch network in Asian markets, leveraging its multilingual staff and community engagement to capture growth opportunities [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted that while the economic outlook has become uncertain, the company remains focused on controllable factors and investing in business initiatives to drive future profitability [29][32] - The company expects stable assets for the year, with loan growth being market-dependent and a continued emphasis on improving the mix of interest-earning assets and liabilities [30][32] Other Important Information - The allowance for credit losses is stable at 59 basis points of loans, with criticized loans to total loans at a low 133 basis points, reflecting a conservative underwriting approach [19][32] - Non-interest income is expected to benefit from the closing of back-to-back swap loans and a BOLI exchange, while non-interest expenses are projected to increase by 5% to 8% in 2025 [31][32] Q&A Session Summary Question: Can you provide insight on the adjustments that offset seasonal expenses? - Management indicated that adjustments were made based on year-end accruals that needed to be trued up as the new year began [38] Question: What is the status of the multifamily uptick in non-performing loans (NPLs)? - Management explained that the multifamily loan issue involves a relationship with three loans at an LTV of about 43%, and they are working to resolve it [40][44] Question: How is the Asian community managing through the tariff situation? - Management stated that there is no direct exposure to trade financing and that the community is expected to remain stable despite potential price increases [60][61] Question: What is the outlook for the SBA pipeline and gain on sale income? - Management noted that they do not provide guidance on gain on sale income but mentioned activity in real estate-based lending with premiums on sale around 7% [67]

债券"策略荒"- 每周债市超话 20250428 摘要 • 当前债市呈现策略荒，收益率曲线总体走平，长端波动小，交易空间狭窄， 机构操作谨慎，多以票据策略为主，拉长久期意愿不强。短端受资金价格 限制，下行空间有限；长端交易难度大，波段操作风险高。 • 政治局会议后，市场对货币宽松预期有所压缩，降准降息时间点未明确， 广义财政政策发力未超预期。MLF 与买断式回购进入平衡状态，增量难度 增加，降准的宽松信号意义不可替代，市场对二季度降准仍抱有期待。 • 短期内，不需要过分担心流动性问题，短端国债估值水平合理，与资金价 格挂钩仍有调整空间。即使没有降准落地，资金也不会再次明显收紧，银 行负债已经修复，降准落地将使流动性更加平稳。 • 当前策略荒是短期应对，中长期宏观趋势对债市有利，但需时间验证。若 短端保持稳定且收益率曲线偏平，则是较好情景；若仅降准而无明确宽松 政策，长端可能出现阶段性止盈压力，需保持谨慎。 • 近期若无降息落地，交易节奏不利，易出现熊陡走势或长端止盈。关注短 端积累票息，为后续博弈做准备，淡化长端交易。降准在短端更安全平稳， 长端行情需短端率先下行，或资金超预期宽松。 Q&A 近期债市行情的主 ...

Financial Data and Key Metrics Changes - The book value at December 31 was $14.47 per common share, down from $14.93 on September 30, resulting in a flat quarterly economic return [6][17] - The company incurred a comprehensive loss of $1.6 million or $0.03 per weighted average common share in Q4 [18] - Net interest expense decreased by $7.4 million in Q4 due to lower RMBS borrowing balances [18] - The economic return for the full year of 2024 was 7.0 percent [17] Business Line Data and Key Metrics Changes - Net servicing income was $168 million, slightly down from Q3 due to lower float income [19] - The servicing assets showed a gain of $82.5 million in Q4 after a loss of $133.4 million in Q3 [20] - The weighted average note rate in the MSR portfolio was 3.46%, with mortgage rates around 7% [11] Market Data and Key Metrics Changes - The 10-year treasury yield increased by 79 basis points to finish at 4.57% [7] - The 2-year treasury yield increased by 60 basis points to 4.24% [7] - The overall prepayment rates for 30-year agency RMBS rose to 6.9% CPR, reflecting a lagged effect from lower rates in Q3 [30] Company Strategy and Development Direction - The company is focused on a hedged MSR-centric strategy to generate stable cash flows [14] - A direct-to-consumer origination platform was launched to maintain the servicing portfolio through recapture of underlying mortgage loans [11] - The company aims to expand its second lien loan offerings to borrowers [13] Management's Comments on Operating Environment and Future Outlook - Management expects mortgage rates to remain above 6% in the intermediate term, which may keep housing activity muted [9] - The company believes that its MSR portfolio will benefit from the success of servicing and originations [11] - Management expressed optimism about the stability of returns and the potential for attractive levered returns in 2025 and beyond [35] Other Important Information - The company serviced $212 billion UPB of MSR across 861,000 loans, with $58 billion UPB serviced for third-party clients [10] - The economic debt to equity ratio decreased slightly to 6.5 times [26] - The MSR portfolio was valued at $202 billion UPB at December 31, reflecting a slight increase in price multiple to 5.9 times [31][32] Q&A Session Summary Question: How has the book performed so far in the quarter? - Management indicated that total return is estimated to be up between 1.5% to 2% as of the previous night [38] Question: How does the lower leverage level impact earnings power? - Management stated that overall debt to economic ratio is just one measure and that the mix of assets supports stable returns [39][40] Question: What is the outlook for Agency MBS spreads this year? - Management expressed a positive outlook for mortgage spreads, noting a more controlled response since November [46][49] Question: Any thoughts on potential GSE reform? - Management indicated they do not have more information than the market regarding GSE reform and its implications [54] Question: Can you discuss the differences between EAD and static return range? - Management explained that the static return is a mark-to-market basis, while EAD reflects the purchase price and can create timing distortions [60][62] Question: Are there new financing counterparties for the MSR portfolio? - Management noted that the depth of the market for MSR financing continues to grow with new entrants [70][71] Question: How have costs changed in response to rate cuts? - Management stated that financing costs have decreased as the Fed has cut rates, impacting both MSR and RMBS sides [73]