Starwood Property Trust (NYSE:STWD) Q4 2025 Earnings call February 25, 2026 10:00 AM ET Speaker5Greetings, welcome to the Starwood Property Trust fourth quarter 2025 earnings call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Zach Tanenbaum, Director of Investor Relations. Thank you. You ma ...

COMMERCIAL HOME IMPROVEMENT RECREATION FINTECH FOURTH QUARTER 2025 EARNINGS SUPPLEMENT February 18, 2026 NASDAQ: MFIN A specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan origination services to fintech strategic partners. Important Information This presentation contains certain forward-looking statements, including statements with regard to the future performance of Medallion Financial Corp. ("MFIN" or the "Company"). Words s ...

Core Viewpoint - The financial results for fiscal year 2025 indicate a challenging past year but a promising outlook for 2026, driven by strengthening capital markets and accelerating commercial lending activities [2][3]. Financial Results - Fourth Quarter revenues were $2,591,000, a decrease of 23% year-over-year compared to $3,351,000 [6]. - Fourth Quarter net losses amounted to ($900,000), translating to $(0.02) per share [6]. - Full Year revenues reached $10,317,000, reflecting a 5% increase year-over-year from $9,794,000 [6]. - Full Year net losses totaled ($4,213,000), or $(0.08) per share, with adjusted net losses for non-recurring and non-cash items at ($2,428,000), or $(0.05) per share [6]. - Full Year EBITDA was ($1,472,000), compared to ($535,000) for fiscal year 2024 [6]. Corporate Developments - The company is experiencing improving conditions in the industry, with declining interest rates stimulating economic activity and rapid growth in its Corporate Finance business [3][4]. - Hampton Financial Corporation is focused on cost reduction initiatives and expanding its business portfolio, particularly in Wealth Management, Capital Markets, and Commercial Lending operations [3][4]. - The company continues to develop its Wealth Management and Advisory Team programs, providing experienced wealth managers with a flexible operating platform [4]. Business Operations - Hampton operates through its subsidiary, Hampton Securities Limited, which is involved in wealth management, advisory services, and capital markets activities [5]. - The company’s commercial lending business, Oxygen Working Capital Corp., offers factoring and term financing to businesses across Canada [4][7]. - Hampton is exploring opportunities to diversify its revenue sources through strategic investments in both complementary and non-core sectors [7].

Financial Data and Key Metrics Changes - The company reported net income of $106.1 million or $0.53 per diluted share for Q3 2025, with operating earnings of $74.1 million, reflecting a 44% increase year-over-year [10][11] - Operating return on assets (ROA) was 1.16%, up 34 basis points from the prior year, while return on average tangible common equity increased 300 basis points to 11.7% [6][11] - The efficiency ratio improved from 59.7% to 52.8%, driven by higher revenues and effective expense management [10][11] Business Line Data and Key Metrics Changes - Total loans grew 1.3% linked quarter and 4.1% year-to-date, primarily driven by strong commercial lending results [7][16] - Wealth management assets under management reached a record high of $9.2 billion, driven by market appreciation and modest positive net flows [8][13] - Non-interest income was $41.3 million, down $1.6 million from the second quarter, with wealth management fees accounting for nearly half of total non-interest income [12][13] Market Data and Key Metrics Changes - Period-end deposits totaled $21.1 billion, a decrease of $104 million or less than 1% from Q2, with a favorable deposit mix benefiting the company [15] - The company remains fully deposit funded with essentially no wholesale funding, enhancing balance sheet strength [15] - The commercial real estate loan portfolio stands at $7.4 billion, with a focus on local markets and diversified by sector [19][20] Company Strategy and Development Direction - The company is focused on organic growth and the integration of the HarborOne merger, which is expected to close on November 1 [5][22] - The strategy includes expanding the commercial banking division and enhancing wealth management capabilities [51] - The company plans to return capital to shareholders through share repurchases and consistent dividend growth [9][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, citing strong profitability and the potential for organic growth following the HarborOne merger [5][22] - The company remains cautious about credit quality but is optimistic about overall trends [18] - Management emphasized the importance of maintaining a strong deposit base amid heightened competition [15] Other Important Information - The company announced the resumption of its share repurchase program, authorizing up to 11.9 million shares [9][17] - The tangible book value per share increased by 5% from June 30 to $13.14 [9] - The company is committed to enhancing shareholder value through strategic investments and operational efficiencies [4][22] Q&A Session Summary Question: Thoughts on margin stability and future trends - Management indicated that core margin may hold steady in Q4, with competitive pressures on deposits likely to impact it [24][25] Question: Expense outlook for Q4 - Management expects expenses to remain flat or decrease slightly in Q4, with some inflation in tech expenses [27] Question: Appetite for additional deals post-HarborOne merger - The focus remains on organic growth and the integration of HarborOne, with no immediate plans for further mergers [28][30] Question: Wealth management asset growth breakdown - The increase in assets under management was predominantly market-driven, with net flows being slightly positive [35] Question: Update on office loan exposure - Management clarified that the increase in non-performing loans was due to one specific loan, which is being monitored closely [40][42] Question: Spot margin for September - The spot margin was reported at 3.48%, slightly higher than the previous quarter [44] Question: Long-term growth areas within the business - Management highlighted opportunities in commercial lending and wealth management as key areas for future growth [51][52]

Core Insights - Associated Banc-Corp's (ASB) Q3 2025 earnings per share (EPS) of 73 cents exceeded the Zacks Consensus Estimate of 66 cents and improved from 56 cents in the prior-year quarter [1][9] - The increase in net income available to common shareholders was 43% year over year, reaching $122 million, surpassing the estimate of $106.1 million [2] Revenue and Expenses - Total revenues for the quarter were $391 million, reflecting a 20% year-over-year increase and beating the Zacks Consensus Estimate of $375.91 million [3] - Net interest income (NII) reached a record $305 million, up 16% year over year, driven by higher commercial lending volumes and improved deposit mix management [4] - Non-interest income totaled $81 million, increasing 21%, primarily due to higher capital markets revenues and fees [5] - Non-interest expenses rose 8% to $216 million, mainly due to increased personnel and technology costs, exceeding the estimate of $209.3 million [5] Efficiency and Credit Quality - The efficiency ratio improved to 54.77%, down from 59.51% in the prior-year quarter, indicating enhanced profitability [6] - The provision for credit losses was $16 million, down from $21 million in the prior-year quarter, with total non-performing assets decreasing by 8% [8] Loans and Deposits - Total loans as of September 30, 2025, were $31.0 billion, up 1% sequentially, while total deposits rose 2% to $34.9 billion [7] Capital Ratios and Outlook - The Tier 1 risk-based capital ratio improved to 10.89%, up from 10.30% in the corresponding period of 2024 [10] - Management expects loans to grow at 5-6% and total core customer deposits to rise by 4-5% in 2025 [11] - Non-interest income is projected to increase by 5-6%, up from the previous guidance of 1-2% [12]

Core Insights - The acquisition of Comerica by Fifth Third Bancorp, valued at $10.9 billion, will create the ninth-largest bank in the U.S. by assets, emphasizing the importance of scale in deposits, technology, and data in regional banking [3][4][5] - The merger will enhance Fifth Third's footprint from the Midwest to the South and Sun Belt, positioning the new entity as a super-regional bank [6][8] Company Overview - The combined company will hold approximately $288 billion in assets, with Fifth Third shareholders owning about 73% and Comerica shareholders 27% of the new entity [4][5] - The merger is expected to close early next year, pending regulatory approvals [5] Industry Trends - The merger reflects a broader trend of consolidation among regional and super-regional banks, driven by the need for scale and technological integration [1][3][12] - Recent earnings reports from regional banks indicate a cautious optimism, with technology investments leading to significant revenue growth [10] Market Dynamics - The U.S. commercial banking landscape is becoming increasingly fragmented, with a steady decline in the number of measurable scale banks due to mergers [12][13] - Smaller community banks struggle to compete due to limited technology budgets and compliance capabilities, while larger national banks dominate the market [13] Technological Integration - The Fifth Third-Comerica merger will facilitate the integration of technology, consolidating core systems, data analytics, and payments infrastructure, which is crucial for operational efficiency [14]

Company Overview - Medallion Financial Corp is a specialty finance company focusing on consumer and commercial lending[2] - The company has a strong foundation with a history of niche lending excellence and significant insider ownership of over 20%[7] - Medallion Financial Corp has a coveted Industrial Bank Charter[7] Financial Performance - The company's core consumer lending business is performing well, with the consumer loan portfolio more than doubling over the past 5 years to $235 billion[7] - Total Company Net Interest Margin was 805% in FY24[7] - The company's market capitalization is $2382 million, with a share price of $1025 as of July 29, 2025[6] - The total gross loans as of June 30, 2025, were $25 billion, with recreation loans accounting for $1545 million (622%) and home improvement loans accounting for $804 million (323%)[13] - Net interest income for YTD 2Q25 was $1048 million[17] - Net income attributable to Medallion Financial Corp for YTD 2Q25 was $23083 million[41] Strategic Initiatives - The company has a strategic partnership program with fintech partners, generating $3049 million in loan originations in H1 2025[8] - The company is focused on enhanced operating efficiency, with operating costs as a percentage of net interest income decreasing from 50% in FY2020 to 40% in YTD 2Q25[26]

Financial Data and Key Metrics Changes - The company reported a net income of $12 million and earnings per share of $0.50 for the quarter [5] - Net interest income grew by 7% to $51.4 million compared to the previous year [13] - The net interest margin on gross loans was 7.94%, up 10 basis points from the previous quarter [13] - The net book value per share increased to $16.36 from $16 in the prior quarter and $14.93 a year ago [17] Business Line Data and Key Metrics Changes - The consumer lending business originated $136 million in loans, maintaining a loan book of $2.4 billion [5] - Recreation loans originated totaled $86.8 million at an average rate of 16.06%, while home improvement loans were $48.8 million at an average rate of 11.5% [14] - The commercial lending division originated $9.7 million in new loans and exited one loan with a significant return [6][7] Market Data and Key Metrics Changes - The company collected $2.6 million in cash from its taxi medallion business, consistent with the previous quarter [9] - The strategic partnership program achieved over $125 million in originations for the second consecutive quarter [10] Company Strategy and Development Direction - The company is focused on a methodical approach to growth, ensuring sustainable practices in its lending operations [11] - There is an ongoing effort to expand the strategic partnership program, with expectations to add new partners over time [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of cash collections from the taxi medallion business and identified recovery opportunities in charge-off loans [9] - The company anticipates continued gains from its equity investments, although the timing of exits remains unpredictable [8][27] Other Important Information - The company repurchased approximately 60,000 shares and has $15 million remaining under its share repurchase plan [11] - A 9% increase in the quarterly dividend to $0.12 per share was approved by the Board, marking the third increase since reinstating the dividend [12] Q&A Session Summary Question: Were there any nonrecurring expense items aside from those highlighted? - Management noted elevated professional fees, including $300,000 in technology costs and $600,000 related to the annual meeting [20] Question: Any update on the SEC matter? - Management believes the SEC matter has been resolved, pending board approval and judicial sign-off [22] Question: What flexibility exists in building reserves? - Management confirmed flexibility in determining allowances, using qualitative factors to increase consumer provisions [23] Question: Any anticipated capital gains from Medallion Capital? - Management expects one or two more capital gains this year, though timing is uncertain [27] Question: Outlook on normalized earnings? - Management discussed adjustments for nonrecurring items and expected normalized earnings to be around $0.35 per share [36] Question: Timing for loan sales? - Management anticipates closing a loan sale in Q2, with another sale expected in Q3 or Q4 [38] Question: Durability of strategic partnership loan volume? - Management expressed confidence in maintaining loan volume above $100 million per quarter, with potential for growth [43] Question: Outlook on margins and loan growth? - Management expects margins to remain stable and projects loan growth of 5% to 7% for the year [48]

Financial Performance - Net interest income for 1Q25 was $51.4 million[34] - The net interest margin was 7.94% on gross loans and 8.25% on net loans[16,34] - Net income attributable to Medallion Financial Corp was $12.0 million in 1Q25[30] - Return on common equity was 12.96%[16] Loan Portfolio - Total loan portfolio reached $2.486 billion as of March 31, 2025[18] - Recreation loans constitute 62% of the portfolio, totaling $1.545 billion[18] - Home Improvement loans represent 33% of the portfolio, amounting to $812 million[14,18] - Commercial loans account for 4% of the portfolio, with a total of $116 million[14,18] - Loan originations totaled $136.2 million for the Strategic Partnership Program[15] Shareholder Value - A dividend of $0.11 per share was paid per quarter, with an increase to $0.12 per share beginning May 2025[16] - The company repurchased 60,185 shares at an average cost of $8.83 per share[16] - $14.9 million remains in the share repurchase plan[16]