Core Insights - Mobilize Financial Services Group has successfully placed a securitization backed by auto loans from its German branch, totaling 624 million euros [2] - The securitization includes 611 million euros of Senior notes and 13 million euros of subordinated notes, rated AAA(sf) / Aaa(sf) and AAA(sf) / Aa1(sf) respectively by DBRS and Moody's [2] Group 1: Securitization Details - The Senior tranche has a weighted average life of 2.95 years and a coupon of Euribor 1 month + 62bps [3] - The subordinated notes have a weighted average life of 4.66 years with a coupon of Euribor 1 month + 90bps [3] - This transaction highlights the diversified financing sources available to the company [3] Group 2: Company Overview - Mobilize Financial Services is a subsidiary of Renault Group, focusing on innovative financial services for sustainable mobility [5] - The company operates in 35 countries with nearly 4,000 employees and financed over 1.3 million contracts in 2024 [6] - As of December 2024, the company reported average earning assets of 55.9 billion euros and pre-tax earnings of 1,194 million euros [6] Group 3: Deposit-Taking Business - Since 2012, the company has developed a deposit-taking business, with net deposits reaching 30.5 billion euros by the end of December 2024, accounting for 50% of its net assets [7]

Financial Data and Key Metrics Changes - Earnings available for distribution (EAD) was $0.52 per diluted share, representing an 8% year-over-year growth, marking the 22nd consecutive quarter where EAD exceeded common dividends paid [17] - GAAP net income was $36.5 million or $0.07 per diluted share, with a 2% return on equity [17] - Book value at the end of the quarter was $12.39, with the company trading at $10.40, indicating that equity is perceived as severely undervalued [19][30] Business Line Data and Key Metrics Changes - Genesis Capital produced nearly $1 billion in production, reflecting a 7% increase year-over-year [20] - Sculptor's asset management business reported $35 billion of assets under management (AUM) with $1.4 billion of gross inflows across the platform [21] - Newrez, as the third-largest servicer and fifth-largest originator, had a funded volume of just under $12 billion, generating $270 million of pre-tax income [23][43] Market Data and Key Metrics Changes - The company has over $80 billion of assets under management, with significant growth in various sectors including real estate, credit, energy, and infrastructure [15][16] - The servicing portfolio at Newrez is approximately $850 billion, which includes $509 billion of owned mortgage servicing rights (MSRs) [47] Company Strategy and Development Direction - The company aims to grow off-balance sheet capital and expand investment verticals, including energy transition and infrastructure funds [26][27] - There is a focus on building partnerships with limited partners (LPs) to enhance capital raising efforts and improve overall business performance [27][73] - The company is exploring various capital actions to unlock shareholder value, including potential public listings and restructuring [59][113] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility, emphasizing the importance of performance and risk management [6][7] - The outlook for the asset management business remains positive, with expectations of continued inflows and strong performance across various funds [37][80] - Management is optimistic about the potential for acquisitions in both the mortgage and asset management sectors, particularly in light of lower valuations in the current market [68][69] Other Important Information - The company is rolling out MSR funds, which are expected to attract significant demand in the marketplace [12][85] - The SPAC initiative aims to generate asset management fees and create off-balance sheet investment opportunities [40][108] Q&A Session Summary Question: Update on the Cooper Rocket transaction and its impact on Newrez - Management indicated that it would be business as usual for Newrez, with potential opportunities for subservicing arising from the transaction [56] Question: Thoughts on potential acquisition opportunities - Management confirmed an active M&A pipeline, particularly in the mortgage and asset management spaces, with a focus on scaling the credit business [68][69] Question: Fundraising activity and LP appetite amid volatility - Management reported strong fundraising momentum and emphasized the importance of building relationships with LPs for future success [72][73] Question: Performance and returns at Sculptor - Management highlighted strong performance across the credit and real estate businesses, with significant commitments in the real estate fund [80][81] Question: Insights on the securitization market amid volatility - Management noted that the market remains open for deals, with opportunities arising from wider spreads [95][96] Question: Update on the SPAC vehicle and its strategic rationale - Management explained that the SPAC provides a low-cost option for generating asset management fees and deploying capital effectively [108] Question: Potential structural changes to unlock value - Management is exploring various options, including the possibility of transitioning to a C-Corp structure to enhance valuation [127][130]

Core Viewpoint - Third Coast Bank has successfully originated a $200 million revolving commercial real estate loan, marking a significant achievement for the organization and enhancing its financial position through improved risk management and capital efficiency [1][7]. Group 1: Loan Details - The $200 million mortgage loan is secured by a portfolio of eleven Residential Master Planned Communities under development in the Houston, Dallas, and Austin metropolitan areas of Texas [2]. - EJF Capital LLC, a global alternative asset management firm with approximately $5.4 billion in assets under management as of December 31, 2024, arranged the securitization transaction related to the mortgage loan [2][10]. Group 2: Securitization Process - Following the loan origination, Third Coast Bank created participation interests in the mortgage loan, selling one to EJF CRT 2025-1 Depositor LLC, which then sold it to EJF CRT 2025-1 LLC [3]. - The Issuer pledged its participation interests to U.S. Bank Trust Company, National Association, and issued Asset-Backed Notes, including Class A-1 and Class M-1 Notes, with the Class A-1 Notes sold to the Bank [4]. Group 3: Financial Impact - The transactions are expected to reduce the Bank's risk-weighted assets and the ratio of loans for construction and land development to total capital, which is a measure used by regulators to assess loan concentration risk [6]. - The Company believes these transactions will enhance the diversity of the Bank's on-balance sheet loan portfolio [6]. Group 4: Leadership Commentary - Bart Caraway, President & CEO of Third Coast Bank, expressed pride in the team's efforts to complete the first securitization, highlighting its importance in strengthening the Bank's financial position and opening new opportunities for customer service [7].

Core Insights - SoFi Technologies has experienced stock price volatility but appears to be recovering, prompting investor evaluation of its future trajectory [1] - The company has made operational advancements and strategic expansions, including a significant agreement with Blue Owl Capital to enhance its Loan Platform Business [2][3] Strategic Developments - SoFi secured a commitment of up to $5 billion from Blue Owl Capital, marking the largest agreement for the company, focusing on diversifying revenue streams towards fee-based income [2] - The CEO emphasized the deal's importance in helping members manage their finances while shifting towards less capital-intensive revenue sources [3] Financial Performance - In Q4 2024, SoFi reported a 24% year-over-year increase in adjusted net revenue, totaling $739.1 million, and achieved full-year GAAP profitability for the first time with a net income of $498.7 million [8] - Adjusted EBITDA for 2024 reached $666.5 million, reflecting a 54% increase from the previous year, indicating improved operational efficiency [9] Future Projections - Management projects adjusted net revenue for 2025 to be between $3.2 billion and $3.275 billion, representing a 23% to 26% year-over-year growth [10] - Adjusted EBITDA is expected to range from $845 million to $865 million, targeting an incremental EBITDA margin of 30% [10] Member Growth and Engagement - SoFi reported over 10.1 million members by the end of 2024, a 34% annual increase, with total products exceeding 14.7 million, up 32% year-over-year [11] - The introduction of the enhanced SoFi Plus membership program aims to deepen member engagement and foster loyalty [6][7] Market Sentiment - Despite positive operational indicators, market sentiment remains cautiously neutral, with an analyst consensus rating of Hold and an average price target of $12.50 per share [12] - There is significant short interest in SOFI shares, with over 131 million shares sold short, indicating persistent bearish sentiment [12] Investment Considerations - The investment thesis for SoFi is multifaceted, characterized by growth narratives and market risks, including competition in the fintech sector and macroeconomic uncertainties [15][16] - The decision to invest hinges on individual risk tolerance and belief in SoFi's long-term growth trajectory [17]

Financial Data and Key Metrics Changes - Total revenue increased by 8.7% despite average selling prices declining by 90 basis points [18] - Interest income rose by 5.1%, driven by overall receivables growth of $31 million year-over-year and a 50 basis point increase in the portfolio's weighted average interest rate [19] - Net charge-offs as a percentage of average finance receivables improved to 6.1% from 6.8% in the prior year quarter [26] - The allowance for credit losses as a percentage of finance receivables decreased to 24.31% from 25.74% a year ago [27] - SG&A expense increased by $2.9 million, or 6.7%, primarily due to acquisitions and higher stock compensation [31] Business Line Data and Key Metrics Changes - Sales volumes were up 13.2% for the quarter, attributed to improved execution and an earlier launch of the annual tax season promotion [21] - Gross margin improved to 35.7% from 34.2%, driven by vehicle procurement and disposal initiatives [23] - Collections increased by 5.2% over last year, with the monthly average total collected per active customer rising to $568 from $540 [29] Market Data and Key Metrics Changes - Delinquencies increased by 40 basis points to 3.7% at quarter end, influenced by winter weather impacts [30] - The application volume was up over 3.5%, indicating stronger demand from consumers [79] Company Strategy and Development Direction - The company is focused on improving and diversifying its balance sheet by adding new capital and lenders, as well as enhancing its securitization program [9] - A new Vice President of Capital Markets and Treasury was hired to support the growing ABS platform and capital market strategy [13] - The company aims to provide affordable financial solutions for vehicle ownership and exceptional service to customers under financial pressure [36] Management's Comments on Operating Environment and Future Outlook - The management highlighted the challenging environment for customers due to inflation, higher used car prices, and elevated interest rates [9] - The company is optimistic about its position heading into the strong fourth quarter and spring selling season, with increased inventory and refined marketing strategies [38] - Management remains cautious about the macro environment but believes that the company's foundational improvements will lead to future growth [40] Other Important Information - The company completed an extension and upsizing of its ABL facility to $350 million, maturing in March 2027 [10] - The sixth ABS transaction was completed in January, totaling $200 million and was more than 10 times oversubscribed [11] Q&A Session Summary Question: Update on unit recovery and underwriting trends - Management indicated that underwriting has been cautiously relaxed, with current volumes expected to be down 6% to 8% compared to fiscal year '23 [46][47] Question: Impact of weather on delinquencies - Management acknowledged the difficulty in isolating weather impacts but noted that delinquencies have trended back down quickly [49] Question: Timing and ramp-up of acquisitions - The company closed on a dealership in December and two larger dealerships in June, expecting to add over 5,000 accounts in the next 18 to 24 months [52] Question: Provisioning benefits and consumer stress - Management believes most benefits are from improved underwriting practices rather than an overall improvement in consumer conditions [58][59] Question: Update on application pool and tax season - Management reported a slower start to tax season but noted stronger demand and improved application volume, indicating positive consumer behavior [74][79]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $15 million or $0.65 per common share for Q4 2024, while for the full year, GAAP net income was $28.8 million or $1.17 per diluted common share [17][19] - Distributable earnings for Q4 were $9.9 million or $0.42 per diluted common share, with full-year distributable earnings at $7 million [18][20] - Interest income for Q4 was $31.9 million, marking a 30% improvement compared to Q4 2023, and net interest income was $9.9 million, a 20% improvement [19][20] - GAAP book value per share decreased by 9.8% to $10.17 as of December 31, 2024, down from $11.28 as of September 30, 2024 [25] Business Line Data and Key Metrics Changes - The company completed five securitizations in 2024, exceeding the target of one per quarter, with a total of $855 million in scheduled unpaid principal balance [22][23] - The weighted average coupon of the residential whole loan portfolio increased by 61 basis points to 7.39% by year-end 2024 [21] Market Data and Key Metrics Changes - The total portfolio weighted average percentage of loans 90 days plus delinquent increased to 2.4% from 1.85% at the end of Q3 2024 [27] - The company noted that the securitization market remains active and receptive with tight spreads, indicating a favorable environment for capital recycling [12][23] Company Strategy and Development Direction - The company focuses on long-term earnings accretion, disciplined decision-making, and risk management to create shareholder value [7][8] - The capital deployment strategy is adaptive and flexible, aligning with evolving market dynamics to maximize returns [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term backdrop of the business, despite experiencing a decline in book value due to interest rate volatility [8][11] - The company expects interest income to continue growing through effective portfolio management and securitization execution [21] Other Important Information - The company declared a $0.32 per share common dividend, paid on February 28, 2025 [32] - The company has a small exposure to the California mortgage market, with minimal impact from recent wildfires [30][31] Q&A Session Summary Question: How insulated are the '21 to '23 vintages regarding prepayments? - Management indicated that significant declines in rates would be needed to trigger prepayments, estimating a drop of 150 to 200 basis points [37] Question: Can you discuss the outlook for net interest income (NII) in the next quarter? - Management confirmed a strong pipeline and expected continued growth in NII throughout 2025 [50][51] Question: What are the expectations for delinquencies moving forward? - Management anticipates a return to normalized levels of 2% to 3% for 90-day delinquencies, indicating a healthy credit environment [64] Question: What is the company's stance on repurchasing stock? - Management expressed a preference for building equity over stock buybacks, citing higher returns on incremental capital compared to the current dividend yield [59][60]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported net income of $0.25 per share and adjusted distributable earnings (ADE) of $0.45 per share, which comfortably covered the quarterly dividend of $0.39 per share [7][19] - The ADE increased from $0.28 per share in Q1 2024 to $0.45 per share in Q4 2024, reflecting a 25% year-over-year growth in the credit portfolio [44] Business Line Data and Key Metrics Changes - The Longbridge reverse mortgage segment performed excellently, contributing $0.30 per share to net income, while the credit portfolio generated $0.32 per share [19] - The credit portfolio increased by 5% to $3.42 billion, driven by net purchases of closed-end seconds, HELOCs, commercial mortgage bridge loans, and non-agency RMBS [24] - The Longbridge portfolio decreased by 15% sequentially to $420 million due to the impact of proprietary reverse mortgage securitization [25] Market Data and Key Metrics Changes - The agency strategy generated a modest loss due to rising interest rates and volatility around the presidential election, impacting Agency RMBS performance [22] - The overall debt-to-equity ratio increased to 8.8:1 from 8.3:1, while the recourse debt-to-equity ratio remained unchanged at 1.8:1 [26] Company Strategy and Development Direction - The company aims to continue leveraging its vertical integration to grow its loan origination business and maintain a focus on credit investments rather than agency securities [30][79] - The strategic use of securitizations is viewed as a core competitive advantage, expected to drive strong earnings and support dividend coverage [14][58] Management's Comments on Operating Environment and Future Outlook - Management noted an uptick in residential loan delinquencies, particularly in the non-QM portfolio, but does not expect material losses due to strong underlying real estate security [39] - The company remains optimistic about the demand for proprietary reverse mortgage products and anticipates continued ADE growth to cover dividends moving forward [45] Other Important Information - The company completed four securitization transactions in Q4, capitalizing on favorable market conditions, which included two non-QM deals and a proprietary reverse mortgage securitization [10][12] - The total weighted average borrowing rate on recourse borrowings decreased by 56 basis points to 6.21% due to lower short-term interest rates and tighter financing spreads [25] Q&A Session Summary Question: Can you talk about some of the originator investments and the appetite for non-QM given the commentary around delinquencies? - Management indicated that they have been making small investments in platforms where they have established relationships and can help lower warehousing costs and improve underwriting processes [63][64] Question: Can you contextualize the earnings expectations for Longbridge? - Management suggested a long-term run rate target of approximately $0.09 per share per quarter for Longbridge, with Q4 exceeding this expectation [68][70] Question: Why isn't the agency portfolio more attractive at current valuations? - Management explained that while the agency sector has been good, they believe their capital can be better utilized in credit-focused investments that leverage their vertical integration [76][79] Question: Is there an expectation from investors to buy loans out of the securitization trust? - Management clarified that they expect to work out and resolve loans while they remain in the securitization, rather than buying them out [84] Question: What is the current run rate for net interest income? - Management indicated that the net interest income seen in Q4 is a good run rate moving forward, supported by ongoing improvements in liability management [91][92] Question: What is the impact of staffing cuts at HUD on Longbridge? - Management acknowledged the uncertainty but emphasized that their proprietary business has been driving earnings, and they will have to wait and see how regulatory changes unfold [121][123]

Securitization Strategy & Optimization - Securitization accelerates cash flow by converting receivables into cash, reducing the wait time for mortgage receivables to pay off from 7-10 years[2] - The company aims to increase securitization activity following the Bluegreen integration[3] - The optimization program is underway in Q4 '24[4] - The company is increasing its average share repurchase pace from $100 million per quarter to $150 million per quarter[5] Financial Impact & Cash Flow - Pre-optimization, the company securitized 55% of current receivables, resulting in $1.9 billion in proceeds[10] - The 2025E target range for securitization is 65-70% of current receivables, generating $2.3-2.5 billion in proceeds[10] - The target securitization rate is 70-80% of current receivables, potentially unlocking approximately $700 million of incremental cash[10, 11] - The full program impacts Adjusted EBITDA by $39 million, with minimal impact to underlying free cash flow[12] - Approximately $700 million of incremental cash is unlocked with only $9 million of underlying cash flow impact (EBITDA impact)[13] Liquidity & Implementation - The company has significant excess liquidity, including over $150 million in unrestricted cash, $871 million in revolver capacity, and $627 million in unsecuritized non-delinquent receivables as of Q3 '24[7] - The company's 2025 Adjusted EBITDA guidance contemplates $25 million of additional financing interest expense[16]

Financial Data and Key Metrics Changes - Total revenues in 2024 improved to $362 million compared to $349 million in 2023, primarily due to higher net effective spread [10] - Core earnings year to date improved to $172 million, modestly exceeding the prior year record [11] - Net effective spread improved by $12.6 million year over year, although it compressed by three basis points to 115 basis points due to loans moving into non-accrual status [29] Business Line Data and Key Metrics Changes - The company introduced a new segment reporting construct, rebranding the rural utility segment to power and utilities and introducing a broadband infrastructure segment [13] - In 2024, the company purchased $7 billion in gross volume, with significant growth in farm and ranch and renewable energy loan purchases [15] - The broadband infrastructure segment grew over $300 million or 60% year over year, reflecting strong demand for financing opportunities in rural areas [17] Market Data and Key Metrics Changes - The company ended the year with nearly $1.5 billion in total renewable energy volume, reflecting strong demand for renewable energy power generation and storage [16] - The farm and ranch segment saw net growth of about $200 million during 2024, supporting larger agribusinesses [18] - Ninety-day delinquencies increased from 37 basis points to 51 basis points, reflecting seasonal patterns in the agricultural cycle [38] Company Strategy and Development Direction - The company plans to continue its focus on renewable energy and broadband infrastructure as key growth areas, with a strong pipeline for 2025 [17][22] - The company aims to maintain a disciplined approach to expense management while investing in technology to enhance operational efficiency [34] - The company is committed to being a regular issuer in the market, with plans to explore new securitization products and asset classes [22][43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong liquidity, capital levels, and a diversified business mix [47][49] - The company does not anticipate material changes to its business due to the change in administration in Washington, DC [48] - Management highlighted the importance of navigating market uncertainty and potential regulatory changes while fulfilling its mission [49] Other Important Information - The company announced a 7% increase in its quarterly common stock dividend to $1.50 per share, effective in the first quarter of 2025 [10][41] - The total allowance for losses was $25.3 million as of December 31, 2024, reflecting a $3.4 million increase from the previous quarter [36] Q&A Session Summary Question: Update on transformational securitization product - Management is exploring opportunities to securitize loans similar to farm and ranch loans and renewable energy loans, with no pending announcements at this time [56][57] Question: Details on elevated G&A expenses - Elevated operating expenses were attributed to new business lines and one-time expenses related to the completion of the STARS program, with some volatility expected [62][63] Question: Outlook for spreads in 2025 - Management anticipates spreads to remain stable, with growth in higher spread businesses like renewable energy and farm and ranch products [72][78] Question: Impact of credit loss content on higher product spreads - Credit issues remain idiosyncratic, with no systemic problems anticipated, and management is cautious about projecting future credit trends [89][92] Question: Potential changes in renewable energy support from the government - Current projects are not grant-dependent and have locked-in credits, with management taking a wait-and-see approach regarding potential changes in tax law [101][105] Question: Loan loss reserve expectations - The increase in the reserve was not a catch-up but rather reflective of specific idiosyncratic issues, with expectations for stability if no new issues arise [110][114]