Core Insights - NewtekOne (NEWT) has experienced a significant decline this year, leading to a record high dividend yield and trading at a substantial discount to its tangible book value (TBV) per share [1] Group 1: Company Performance - The dividend yield of NewtekOne has expanded to a record high due to its price dip [1] - NewtekOne is currently trading at a double discount to its tangible book value per share [1] Group 2: Market Context - The equity market serves as a powerful mechanism for wealth creation or destruction over the long term, influenced by daily price fluctuations [1] - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Financial Data and Key Metrics Changes - The tangible book value increased to $26 per share, representing over 26% annualized growth quarter over quarter [5] - Operating earnings for the quarter were $14.5 million or $0.86 per diluted share, marking the sixth consecutive quarter of positive operating leverage [5] - Total operating revenue reached $50.8 million, with net interest income expanding [6][11] - Non-performing assets remained low at 22 basis points, indicating strong credit quality [5][14] Business Line Data and Key Metrics Changes - Loans grew at an annualized rate of 10%, while deposits increased by 15% or $179 million for the quarter [5][8] - Non-brokered deposit growth was $283 million, representing over 24% annualized growth [11] - Operating non-interest income, adjusted for the sale of insurance operations, was $8.4 million, slightly lower than the previous quarter [15] Market Data and Key Metrics Changes - The average portfolio yield, including fees and accretion, rose to 6.14% [8] - The loan-to-deposit ratio decreased to 84%, providing flexibility for balance sheet management [9] Company Strategy and Development Direction - The company aims to deepen its market presence and continue organic growth, targeting high single-digit growth rates [19] - Investments in technology and treasury management are expected to enhance operational efficiency and client experience [10][27] - The company was recognized on Fortune's list of best workplaces, highlighting its strong internal culture [20] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the operating environment, projecting continued revenue and EPS growth while maintaining prudent expense management [20] - The company anticipates a net interest margin of 3.3% to 3.35% for Q4 and expects margin expansion of 5 to 7 basis points per quarter in 2026 [13][61] Other Important Information - The allowance for credit losses is now at 0.93% of total loans, reflecting robust asset quality [14] - The total consolidated risk-based capital ratio improved to 13.3%, indicating a strong capital position [17] Q&A Session Summary Question: Update on Alabama franchise growth outlook - Management noted that hiring has been evenly spread across regions, with positive momentum in Alabama, particularly in cities like Birmingham and Auburn [23][24] Question: Margin guidance for Q4 and balance sheet size - The company plans to deploy cash on hand to fund loan production, expecting no significant change in balance sheet size [26] Question: Impact of tech initiatives on productivity and expenses - New technology initiatives are expected to enhance efficiency without significantly increasing expenses, allowing for reinvestment [27][30] Question: Future of positive operating leverage - Management is confident in maintaining positive operating leverage through revenue growth outpacing expense increases [34][36] Question: Fee growth outlook and insurance impact - The company anticipates continued fee growth, particularly from mortgage and treasury management services, despite the removal of insurance operations from the revenue line [45][46] Question: Plans for remaining brokered deposits - The company aims to reduce brokered deposits further, with a goal of eliminating them entirely in the future [64] Question: M&A strategy - The focus remains on organic growth, but management is open to evaluating strategic M&A opportunities that enhance the company's capabilities [66][68]

Financial Performance - The company reported a net income of $29.0 million and diluted earnings per share (EPS) of $1.71 for Q2 2025, an increase from $25.8 million and $1.52 in Q1 2025 [1][21] - Adjusted net income for Q2 2025 was $29.4 million with an adjusted diluted EPS of $1.73, compared to $26.0 million and $1.53 in Q1 2025 [2][21] - The net interest income for Q2 2025 was $62.1 million, reflecting a $2.1 million increase or 14% annualized from Q1 2025 [5][21] Net Interest Income and Margin - The net interest margin (NIM) for Q2 2025 was 2.97%, with a tax-equivalent yield (TEY) of 3.46%, up from 2.95% and 3.42% in Q1 2025 [5][6] - The company anticipates continued margin expansion, guiding for a potential increase in Q3 NIM TEY by up to four basis points [6] Noninterest Income - Noninterest income for Q2 2025 was $22.1 million, up from $16.9 million in Q1 2025, driven by a 51% increase in capital markets revenue [8][10] - Wealth management revenue totaled $4.6 million, showing an 8% increase compared to Q2 2024 [8] Loan Growth - Total loans and leases held for investment grew by $102.6 million to $6.9 billion in Q2 2025, representing an 8% annualized growth rate [15] - The company expects gross loan growth in the range of 8% to 10% for the second half of the year [15] Deposit and Asset Quality - Total deposits slightly declined by $19.0 million or 1% annualized from Q1 2025, while average deposit balances increased by $72.0 million [17] - The nonperforming assets (NPAs) to total assets ratio was 0.46%, down seven basis points from the prior quarter, with NPAs totaling $42.7 million [19] Capital and Book Value - Tangible book value per share increased by $1.64 or 13% annualized during Q2 2025 [24] - The tangible common equity to tangible assets (TCE/TA) ratio improved by 22 basis points to 9.92% [25]

Financial Performance Highlights - Net income for the first six months of 2025 reached a record of $384.6 million, an increase of $44.9 million or 13% compared to the same period in 2024[10] - Diluted earnings per share (EPS) for the first six months of 2025 were $5.47, up $0.26 or 5% from the same period in 2024[10] - Net interest income for the first six months of 2025 was $1.1 billion, an increase of $138.4 million or 15% compared to the same period in 2024[10] - Total assets reached $69.0 billion, an increase of $9.2 billion or 15% compared to June 2024[10, 16] - Total loans amounted to $51.0 billion, an increase of $6.3 billion or 14% compared to June 2024[10, 16] - Total deposits increased to $55.8 billion, an increase of $7.8 billion or 16% compared to June 2024[10, 16] Balance Sheet and Capital - Tangible book value per common share (non-GAAP) increased to $81.86 as of June 30, 2025[10, 14] - The investment portfolio totaled $8.7 billion as of June 30, 2025, representing 13% of total assets[41] Credit Quality - Non-performing loans totaled $189 million, comprising 0.37% of total loans as of June 30, 2025[16]

Financial Data and Key Metrics Changes - The company reported a GAAP net income of $51.1 million for Q2 2025, with diluted EPS of $1.20, resulting in a 1.04% return on assets and a 6.68% return on average common equity [21] - Adjusted operating net income for the quarter was $53.5 million or $1.25 diluted EPS, representing a 1.09% return on assets [21] - Tangible book value per share increased by $0.99 during the quarter, reflecting solid earnings retention [22] Business Line Data and Key Metrics Changes - C&I loans increased by 3.4% in the second quarter, while CRE and construction loan balances decreased by 1.7% [8][10] - Total loans increased modestly, with C&I balances driving growth, while transactional CRE balances experienced attrition [24] - Wealth Management business grew AUA by 4% to $7.4 billion, driven mostly by market appreciation [17] Market Data and Key Metrics Changes - Non-performing loans decreased significantly from $89.5 million to $56.2 million, representing 39 basis points of total loans [24] - The cost of deposits was reported at 1.54%, highlighting the value of the deposit franchise [16] Company Strategy and Development Direction - The company aims to reduce its CRE concentration below 300%, with a current concentration of 274% expected to rise to 310-315% post-acquisition of Enterprise Bank [10] - The strategic focus includes growing C&I loans to reduce dependence on CRE and drive deposit and fee income growth [10][20] - The company is preparing for a core conversion scheduled for May 2026, which is expected to enhance technology infrastructure and support future growth [16] Management's Comments on Operating Environment and Future Outlook - Management noted that while economic uncertainty has improved, the impact of tariffs and federal government actions remains unclear, causing customers to pause significant expansion initiatives [7] - The management expressed confidence in the ability to unlock earnings power through prudent expense and capital management, alongside the benefits from the Enterprise acquisition [20] Other Important Information - The company announced a $150 million stock buyback plan to be opportunistic in buying back stock [5] - The acquisition of Enterprise Bank is expected to enhance shareholder value and provide cross-sell opportunities [15][19] Q&A Session Summary Question: Where were new loan originations during the quarter? - Management indicated good loan originations across most segments, with a competitive landscape remaining challenging [37][38] Question: Why has small business lending been successful? - The success is attributed to experienced bankers and a centralized underwriting unit that enables quick loan request turnaround [40] Question: What is the outlook for the net interest margin? - Management expects the margin to gradually rise, particularly if the Fed cuts rates, with a focus on asset repricing [49] Question: Is the worst behind for credit? - Management is cautious, acknowledging progress but not ready to declare that the worst is over [50][51] Question: Can you provide details on a large loan modification? - A large syndicated loan was restructured into a Note A and Note B structure, with no cash payments until mid-2026 [55][56] Question: What is the expected pro forma CET1 ratio? - The pro forma CET1 ratio is expected to be in the mid-12% range, around 12.5% [92]

Financial Data and Key Metrics Changes - Earnings per common share were reported at $0.34, with EPS excluding notable items growing 27% year over year [14] - Average loan balances increased by $2.3 billion or 1.8% from the prior quarter, while average deposits rose by $1.8 billion or 1.1% [15][20] - Adjusted common equity tier one (CET1) was 9%, up 40 basis points from last year, and tangible book value per share increased 16% year over year [8][15] - Return on tangible common equity (ROTCE) was 16.1% for the quarter, adjusted ROTCE was 17.6% [14][15] Business Line Data and Key Metrics Changes - Average loans grew by almost $10 billion year over year, with significant contributions from commercial loans and new initiatives [7][17] - New initiatives accounted for approximately 40% of total loan growth, with $900 million in growth [17] - Fee income in strategic areas such as payments, wealth, and capital markets grew by 11% year over year [8][23] Market Data and Key Metrics Changes - The company reported strong deposit growth, with primary bank relationships increasing by 46% year over year in consumer and business banking [8] - The overall cost of deposits declined by one basis point, reflecting disciplined deposit pricing [20][52] Company Strategy and Development Direction - The company is focused on organic growth and has announced the acquisition of Veritex to accelerate growth in Texas [5][10] - The acquisition is expected to enhance commercial lending and capital markets opportunities, as well as expand the consumer franchise in Texas [12][13] - The company aims to maintain a moderate to low risk appetite while delivering strong performance [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic environment, noting improving sentiment and strong growth momentum [29] - The outlook for loan growth has been increased to 6% to 8%, and net interest income guidance has been raised to 8% to 9% for the full year [30][31] - Management remains focused on driving long-term shareholder value and believes the acquisition will contribute to future growth [36][109] Other Important Information - The company is maintaining a strong liquidity position with two times coverage of uninsured deposits [9] - Credit performance remains stable, with net charge-offs at 20 basis points and an allowance for credit losses at 1.86% [15][28] Q&A Session Summary Question: Concerns about net interest income guidance - Management indicated that they are on track to potentially hit the higher end of the net interest income guidance range, with economic stability being a key factor [42][43] Question: Feedback on the Veritex acquisition - Positive feedback was received from both internal and external partners, with excitement about the opportunities the acquisition presents [45][46][48] Question: Deposit trends and competition - Management noted strong deposit performance and expects continued solid growth, with stable deposit costs anticipated [50][52] Question: Changes in expense guidance - The increase in expense guidance is primarily due to higher incentive compensation linked to better revenue outlook [62][63] Question: Loan growth and competitive environment - Management acknowledged a slowdown in growth from new initiatives but remains optimistic about future contributions [65][66] Question: Outlook for North and South Carolina - The company continues to invest in these markets, with plans for new branch openings and hiring [72][73] Question: Capital levels and future distributions - Management is focused on maintaining a strong capital position and plans to begin regular capital distributions post-acquisition [108][109]

Financial Data and Key Metrics Changes - The company reported a net loss of $2.7 million or 13¢ per diluted share for the first quarter, similar to the prior quarter [8] - Net interest income increased by $1.3 million or 13.4%, driven by a 27 basis point expansion in net interest margin [8][9] - Tangible book value per share increased to $14.81, up 7¢ from the prior quarter [6] Business Line Data and Key Metrics Changes - Loan production totaled $90 million during the quarter with a weighted average yield of approximately 7.1% [5] - The company achieved 3% loan growth while improving the yield on the loan portfolio by 15 basis points [4] - The growth in commercial real estate loans, particularly owner-occupied properties, and construction lending reflects the company's strategy to support local businesses [5][6] Market Data and Key Metrics Changes - Deposits increased by $43.9 million or 3.2%, with core deposit count growing by $24.4 million or 3.8% [12][13] - The company maintains a strong liquidity position with $413 million in untapped borrowing capacity [7] Company Strategy and Development Direction - The strategic priorities for 2025 focus on driving loan growth, maintaining strong credit quality, and diversifying low-cost funding sources [3] - The company is emphasizing asset classes that deliver higher yield and better risk-adjusted returns [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of lending and deposit gathering activities despite reporting a net loss [4] - The company expects additional margin expansion of about 5 to 10 basis points in the second quarter [16] Other Important Information - The company repurchased 464,000 shares at a weighted average price of $9.52, enhancing shareholder value [6][7] - Nonperforming assets increased slightly but remain low at 27 basis points of total assets [14] Q&A Session Summary Question: Margin for the quarter - Management expects margin expansion of about 5 to 10 basis points in the second quarter [16] Question: Loan maturities and resets - Approximately $220 million in loans will mature or reprice within 2025, with yields just shy of 7% [17] Question: Deposit side and CD book - The current cost of CDs is $4.11, with room to lower rates as they transition to core deposits [19][20] Question: Unsecured consumer loans - The yield on unsecured consumer loans is around 7%, and they come with credit reserves [21][23] Question: Future loan purchases - The company may purchase additional loans to augment organic growth but does not plan to rely heavily on this strategy long-term [24] Question: Buyback program - The company plans to continue executing the share buyback program while being mindful of capital deployment [49][52]

Core Points - Blue Foundry Bancorp reported a net loss of $2.7 million, or $0.13 per diluted common share, for Q1 2025, consistent with the previous quarter and slightly improved from a net loss of $2.8 million in Q1 2024 [1][34]. Financial Performance - The net interest margin increased by 27 basis points to 2.16%, driven by improved yields on assets and reduced costs of liabilities [2][12]. - Interest income for the quarter was $22.7 million, up by $928 thousand, or 4.3%, compared to the previous quarter [6]. - Interest expense decreased by $343 thousand, or 2.8%, to $12.0 million compared to the linked quarter [6]. Loan and Deposit Growth - Total loans increased by $42.2 million to $1.63 billion, with significant growth in commercial real estate and consumer portfolios [4][22]. - Deposits rose by $43.9 million to $1.39 billion, with increases in NOW and demand accounts and time deposits [7][22]. Asset Quality - The non-performing asset ratio was 0.27%, with non-performing loans totaling $5.7 million, or 0.35% of total loans [28][36]. - The allowance for credit losses on loans was 0.81% of gross loans, with a provision for credit losses of $201 thousand recorded for Q1 2025 [28][36]. Capital Position - Tangible book value per share increased to $14.81, and the company maintained a strong capital position [2][28]. - Shareholders' equity decreased by $5.5 million to $326.7 million, primarily due to share repurchases [28].

Core Viewpoint - Citigroup's current share price of $63.25 represents a valuation of approximately 0.7 times its tangible book value per share of $91.52, indicating a significant discount in valuation [1]. Financial Metrics - The tangible book value per share for Citigroup is reported at $91.52 [1]. - The current share price is $63.25, leading to a valuation of around 0.7x tangible book value [1]. Investment Insights - The analysis emphasizes a focus on financials, deep value, special situations, and financial arbitrage, suggesting a strategy that seeks durable and uncorrelated cash flows [1].

Financial Performance - PNC Financial Services Group reported a net income of $1,499 million for Q1 2025, a decrease from $1,627 million in Q4 2024 but an increase from $1,344 million in Q1 2024 [1][4][5] - Net interest income was $3,476 million, down 1% from Q4 2024 but up 6% from Q1 2024, with a net interest margin (NIM) of 2.78%, an increase of 3 basis points from Q4 2024 [1][7][9] - Total revenue for Q1 2025 was $5,452 million, a decrease of $115 million from Q4 2024 but an increase of $307 million from Q1 2024 [6][9] Noninterest Income and Expenses - Noninterest income totaled $1,976 million, down 3% from Q4 2024 due to a slowdown in capital markets activity and seasonality [1][9][10] - Noninterest expenses decreased by 3% to $3,387 million compared to Q4 2024, reflecting lower asset impairments and seasonally lower expenses [1][12][13] Balance Sheet and Credit Quality - Average loans decreased by $2.4 billion, or 1%, to $316.6 billion compared to Q4 2024, while spot loans increased by $2.4 billion, reflecting a 3% growth in commercial and industrial loans [1][9][15] - The allowance for credit losses remained stable at $5.2 billion, with a ratio of 1.64% of total loans [30][32] - Total delinquencies increased to $1.4 billion, up 4% from Q4 2024, primarily due to higher consumer loan delinquencies [30][33] Capital and Shareholder Returns - PNC maintained a strong capital position with a common equity Tier 1 (CET1) capital ratio of 10.6% as of March 31, 2025, up from 10.5% at the end of 2024 [1][25][29] - The company returned approximately $200 million to shareholders through dividends and share repurchases [2][27][29] Business Segment Performance - Retail Banking reported earnings of $1,112 million, an increase of 4% from Q4 2024, driven by lower noninterest expenses [35][36] - Corporate & Institutional Banking earnings decreased to $1,244 million, down 9% from Q4 2024, impacted by lower net interest and noninterest income [39][40] - The Asset Management Group saw earnings increase to $113 million, reflecting growth in discretionary client assets under management [41][42]