Core Insights - Bridgewater Bancshares, Inc. (BWB) operates in the banking sector, providing a range of financial services including commercial real estate loans, commercial loans, and deposit products [1] Performance Overview - Over the past 30 days, BWB has experienced a modest gain of approximately 0.78%, reflecting investor confidence and positive market sentiment [2][6] - Despite a recent decline of 2.63% over the last 10 days, this dip may present a strategic buying opportunity for investors [2] Growth Potential - BWB's stock price has significant growth potential, with an estimated increase of 21.89%, indicating that the stock is currently undervalued [3][6] - Analysts have set a target price of $23.50 for BWB, suggesting further room for appreciation in the stock [5] Financial Health - The company has a robust financial health, evidenced by a Piotroski Score of 8, which indicates strong financials, efficient operations, and a solid balance sheet [4][6]

Financial Data and Key Metrics Changes - In 2025, Medallion Financial Corp reported record performance with increases in net interest income, net income, originations, and portfolio size compared to 2024 [4] - Net interest income grew 8% to $56.4 million for Q4 and 7% to $216.9 million for the full year [17] - Net income attributable to shareholders was $12.2 million for Q4, an increase of $2.1 million from the prior year, and $43 million for the full year, up $7.2 million [23] Business Line Data and Key Metrics Changes - Consumer lending, the largest business line, reported interest income of $74.5 million for Q4 and $289.9 million for the year, growing 5% and 8% respectively [5] - Home improvement loans stood at $810.2 million, with Q4 originations of $61.7 million, down from $82.5 million a year ago [7] - Commercial lending originations were $4.1 million for Q4, compared to $7.3 million the previous year, but total originations for the year increased to $40.6 million from $14.3 million [8] Market Data and Key Metrics Changes - Total loans reached $2.567 billion, with total originations of $421 million for Q4 and $1.5 billion for the full year, reflecting growth from the previous year [4] - The average interest rate on the total loan portfolio increased to 12.26% from 12.01% a year ago [19] - Delinquencies of ninety-plus days were 0.82% for recreational loans and 0.16% for home improvement loans, indicating strong credit quality [6][7] Company Strategy and Development Direction - The company aims to build on its strong foundation while refining strategic priorities, focusing on growth in the recreation and home improvement segments [13] - A disciplined origination strategy and prudent balance sheet management are prioritized to ensure sustainable growth [12] - The strategic partnership program has seen significant growth, with originations reaching a record level of $258.3 million [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changing environments and deliver consistent returns for shareholders [16] - The focus for 2026 includes targeting sustained growth in core business lines and expanding the home improvement segment [13] - Management acknowledged the potential for market conditions to evolve but emphasized a clear and consistent strategy [16] Other Important Information - The provision for credit loss was $27.7 million for Q4, reflecting an increase from previous quarters due to portfolio growth and adjustments in allowance coverage [20] - The company collected $2.5 million from its legacy Taxi Medallion business during Q4, with net recoveries and gains of $1.4 million [11] - The adjusted tangible book value per share increased to $12.12, up from $10.50 a year ago [24] Q&A Session Summary Question: How would you characterize the provision expense of $27.7 million? - Management explained that the increase was due to moving loans from held for sale to held for investment and adjustments in allowance coverage [26][27] Question: What were the nature of the equity gains recognized? - Management detailed that the $8.8 million in equity gains came from several exits, including gains on warrants and equity investments [32][34] Question: What is the growth outlook for the home improvement segment? - Management indicated a focus on mid-teens growth for home improvement, supported by new talent and improved capital availability [36][38] Question: Should we expect a growth in the reserve ratio in 2026? - Management stated that while the allowance will grow with the loan book, significant changes in the reserve ratio are not expected [46] Question: What were the net charge-offs for Q4? - Management provided details on net charge-offs, indicating $107 for home improvement and $441 for the recreational portfolio [48]

Medallion Financial (NasdaqGS:MFIN) Q4 2025 Earnings call February 19, 2026 09:00 AM ET Company ParticipantsAndrew Murstein - President and CEOAnthony Cutrone - EVP and CFOChristopher Nolan - Senior Vice PresidentVal Ferraro - Investor RelationsConference Call ParticipantsMike Grondahl - Head of Equity Research and Senior Research AnalystOperatorGood day, and welcome to the Medallion Financial Corp Fourth Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need as ...

Financial Data and Key Metrics Changes - In Q4 2025, net interest income grew 8% to $56.4 million from $52 million in the same quarter a year ago, and for the full year, it increased 7% to $216.9 million from $202.5 million in 2024 [16][22] - Net income attributable to shareholders was $12.2 million, or $0.50 per diluted share, an increase of $2.1 million or $0.07 per share over the prior year quarter, and for the full year, net income was $43 million, or $1.78 per share, an increase of $7.2 million or $0.26 per share from 2024 [22] - Total loans reached $2.567 billion, with total originations of $421 million for Q4 and $1.5 billion for the full year, reflecting increases from both the same quarter last year and year-over-year [4][18] Business Line Data and Key Metrics Changes - Consumer lending, the largest business line, reported interest income of $74.5 million for Q4 and $289.9 million for the year, growing 5% compared to the same period last year and 8% year-over-year [5] - The recreational loan book grew 5% to $1.6 billion, representing 63% of total loans, with Q4 originations of $97.2 million compared to $72.2 million a year ago [5][18] - The home improvement loan book stood at $810.2 million, representing 32% of total loans, with Q4 originations of $61.7 million versus $82.5 million last year [6] - The commercial segment had new originations of $4.1 million during Q4, compared to $7.3 million the same quarter a year ago, but total originations for the year were $40.6 million, up from $14.3 million in 2024 [7] Market Data and Key Metrics Changes - The average interest rate on the total loan portfolio increased to 12.26% from 12.01% a year ago, with the average interest rate on commercial loans at 14.22% compared to 12.97% a year ago [18] - Delinquencies of ninety-plus days were 0.82% of gross recreational loans and 0.16% of gross home improvement loans, with allowances for credit losses at 5.32% and 2.41% respectively [6][19] Company Strategy and Development Direction - The company aims to build upon its strong foundation while refining strategic priorities, focusing on sustained growth in the recreation and home improvement segments [12] - The strategic partnership program has seen record levels of originations, reaching $258.3 million in Q4, indicating diversification of income sources [9] - The company is committed to disciplined growth, operational excellence, and prudent capital allocation, with a focus on optimizing returns and improving margins [14][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changing environments and deliver consistent, attractive returns for shareholders [14] - The company recognizes the potential for market conditions to evolve but remains focused on sustainable value creation [14] - Management highlighted the importance of maintaining a strong balance sheet to support future investments and growth opportunities [14] Other Important Information - The provision for credit loss was $27.7 million for Q4, reflecting an increase from $18.6 million in Q3 and $20.6 million in the prior year quarter [19] - The company collected $2.5 million in cash from its legacy Taxi Medallion business during Q4, resulting in net recoveries and gains of $1.4 million [10] Q&A Session Summary Question: How would you characterize the provision expense of $27.7 million? - Management explained that the increase was due to moving loans from held for sale to held for investment, which accounted for a $2.2 million provision hit, and an increase in allowance coverage from 5% to 5.32% [26][27] Question: What were the nature of the equity gains of $8.7 million? - Management indicated that the gains were related to several exits, with about $8.5 million coming from three specific portfolio companies [31][32] Question: Should we expect a growth in the reserve ratio in 2026? - Management stated that while the allowance will grow with the loan book, they do not expect significant changes in the reserve ratio [45] Question: What is the growth outlook for the home improvement segment? - Management highlighted that they added experienced talent to support growth in the home improvement line and expect mid-teens growth, significantly above previous levels [36][38]

Core Viewpoint - Bridgewater Bancshares, Inc. (BWB) is positioned as a strong investment opportunity due to its impressive recent performance, significant growth potential, and solid financial health indicators. Performance Summary - BWB has shown a 30-day gain of 5.72%, reflecting strong investor confidence and positive market sentiment [2][6] - Despite a short-term dip of 0.94% over the last 10 days, this may present a buying opportunity for investors [2] Growth Potential - The stock has a projected increase of 23.49%, indicating that BWB is currently undervalued and offers substantial upside for investors [3][6] - Analysts have set a target price of $23.50 for BWB, reinforcing confidence in the stock's growth potential [5] Financial Health - BWB holds a Piotroski Score of 8, suggesting that the company is fundamentally sound and well-prepared for future growth [4][6]

Financial Data and Key Metrics Changes - The company reported a total revenue of $16.9 million for Q4 2025, with lease income of $12.7 million and interest income from commercial loan investments of $4 million [11] - FFO and AFFO attributable to common stockholders for the quarter were $0.54 per diluted share, representing a 22.7% growth over the comparable quarter of the prior year [11] - For the full year 2025, total revenue was $60.5 million, with FFO and AFFO attributable to common stockholders at $1.88 and $1.89 per diluted share, respectively, reflecting approximately 8.6% growth over the prior year [11][12] Business Line Data and Key Metrics Changes - The company acquired 8 properties for approximately $40 million in Q4 2025, contributing to a total of 13 properties acquired for $100.6 million in 2025 [4][5] - The weighted average initial cash cap rate for Q4 acquisitions was 6.9%, while the full year cap rate was 7.4% [5] - The commercial loan portfolio saw significant growth, with $177 million in loan originations for the full year at a weighted average initial coupon of 12% [7][8] Market Data and Key Metrics Changes - At year-end, the property portfolio consisted of 127 properties totaling 4.3 million sq ft across 32 states, with a WALT of 8.4 years and 99.5% occupancy [6] - 51% of the annual base rent (ABR) is now generated from investment-grade rated tenants, with Lowe's, Dick's Sporting Goods, and Walmart representing 29% of the ABR [6] Company Strategy and Development Direction - The company executed a strategic barbell approach to acquisitions, focusing on both investment-grade rated tenants and higher-yielding property investments [5] - The board decided to increase the quarterly common dividend per share by 5.3% to $0.30, indicating confidence in future earnings growth [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's outlook for 2026, citing strong investment activity and successful capital raises [10] - Initial earnings guidance for 2026 is set at $2.07-$2.11 for FFO per diluted common share, with investment volume expected to be between $70 million and $100 million [19] Other Important Information - The company ended the year with net debt to pro forma adjusted EBITDA of 6.7 times, down from 7.4 times at the beginning of the year [16] - The company has a liquidity position of $65.8 million, with potential total liquidity of $97.3 million at year-end [16] Q&A Session Summary Question: Can you discuss the loan portfolio and the 20% threshold? - Management indicated that the 20% threshold for the loan portfolio is reasonable and complementary to the company's core business, with room for an additional $25-$30 million in loans [22][25] Question: What is the status of reducing exposure to certain tenants like Walgreens? - Management confirmed ongoing efforts to sell additional Walgreens properties, with a focus on finding the right buyers [26][28] Question: How do you view the dividend increase in relation to earnings growth? - The increase in the dividend was driven by earnings and taxable income growth, with a focus on maintaining a balance between payouts and retaining cash flow [40][43] Question: What are the expectations for the investment opportunities in 2026? - Management expressed excitement about opportunities in both investment-grade and non-investment-grade properties, focusing on grocery-anchored developments and strong tenant relationships [45][62]

Financial Data and Key Metrics Changes - The company reported a 22.7% growth in AFFO per common share for Q4 2025, reaching $0.54 per diluted share, and an 8.6% growth for the full year 2025 [3][11] - Total revenue for Q4 was $16.9 million, with lease income of $12.7 million and interest income from commercial loans of $4 million. For the full year, total revenue was $60.5 million [11][12] - The company ended the year with a net debt to pro forma adjusted EBITDA ratio of 6.7 times, improved from 7.4 times at the beginning of the year [15] Business Line Data and Key Metrics Changes - In 2025, the company acquired 13 properties for $100.6 million at a weighted average initial cap rate of 7.4%, and sold 9 non-core properties for $38.4 million at a weighted average exit cap rate of 7.7% [4][5] - The commercial loan portfolio grew significantly, with $177 million in originations for the year at a weighted average initial coupon of 12% [6][8] - The property portfolio consisted of 127 properties totaling 4.3 million sq ft with a 99.5% occupancy rate and a WALT of 8.4 years [5] Market Data and Key Metrics Changes - 51% of the company's annual base rent (ABR) is now generated from investment-grade rated tenants, with Lowe's, Dick's Sporting Goods, and Walmart representing 29% of the ABR [5] - The company is targeting its commercial loan portfolio to run at approximately 20% of total undepreciated asset value, which would be around $155-$160 million based on year-end asset values [8][24] Company Strategy and Development Direction - The company continues to execute a strategic barbell approach to acquisitions, focusing on both investment-grade rated tenants and higher-yielding properties [4] - The board has decided to increase the quarterly common dividend by 5.3% to $0.30 per share, reflecting confidence in earnings growth and taxable income [10][19] - The company aims to maintain a 20% allocation in its loan portfolio, indicating a balanced approach to growth while ensuring core net lease properties remain the primary focus [31][49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's outlook for 2026, citing strong investment activity and successful capital raises [10] - The initial earnings guidance for 2026 is set at $2.07-$2.11 for FFO per diluted common share, with expected investment volume of $70 million-$100 million [18] - Management noted that the revenue for 2025 included fees from managing third-party properties, which will not be a significant source of revenue in 2026 [18] Other Important Information - The company raised $50 million through a public offering of Series A preferred stock with an 8% coupon, and utilized ATM programs to raise an additional $18.3 million [9][12] - The company has no debt maturities for the next three years following the closing of a new unsecured credit facility [14][15] Q&A Session Summary Question: Can you discuss the loan portfolio and the 20% threshold? - Management indicated that the 20% threshold is reasonable and allows for complementary investments without distracting from core operations. The current loan portfolio stands at approximately $130 million, with room for an additional $25-$30 million [21][24] Question: What is the status of reducing exposure to certain tenants like Walgreens? - Management confirmed that they are actively working on selling additional Walgreens properties and are focused on finding the right buyers [25][26] Question: How do you assess the cost of equity and capital deployment? - Management stated that they will be prudent in deploying equity capital, primarily for high-yield investments, and emphasized that the current stock price does not deter their investment strategy [33][34] Question: What are the expectations for the dividend increase? - The dividend increase is driven by earnings and taxable income growth, with a focus on maintaining a balance between payouts and retaining cash flow [39][42] Question: What is the outlook for the loan pipeline and funding? - Management expressed confidence in the loan pipeline, indicating that they expect to maintain the 20% allocation and continue to redeploy capital as loans are paid off [49]

Financial Data and Key Metrics Changes - Core EPS for Q4 2025 was $0.43 per share, exceeding consensus estimates, with a net interest margin (NIM) of 3.98%, core ROA of 1.45%, and core efficiency ratio of 52.8% [4] - Average deposits and total loans grew by 2.8% and 1.2% respectively, while net interest income increased by $47.2 million year-over-year to $427.5 million [4][7] - The provision for credit losses decreased by $4.3 million to $7 million, with non-performing loans (NPLs) rising four basis points to 94 basis points [5][6] Business Line Data and Key Metrics Changes - Fee income remained flat at 18% of total revenue, with gains in SBA offset by declines in wealth and mortgage [5] - Core non-interest income for Q4 was $24.3 million, down $200,000 from the previous quarter, with SBA gain on sale income increasing by $800,000 [14] - Core non-interest expense increased by $1.7 million to $74.3 million, primarily due to increased salaries and benefits [15] Market Data and Key Metrics Changes - Average deposit growth for the year was 6.1%, with significant contributions from money market accounts and CDs [9] - The company reported $98 million in non-performing loans, including $39.2 million in total SBA loans [6] Company Strategy and Development Direction - The company aims to grow fee income through its regional banking model and maintain a focus on low-cost deposit growth [5][10] - A portfolio of approximately $225 million in commercial loans was designated as held for sale to improve liquidity and capital ratios [12][13] - The company plans to limit operating cost increases to approximately 3% year-over-year [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining loan growth despite seasonal headwinds and elevated payoffs, projecting continued growth in business banking and mortgage segments [28] - The guidance for NIM is expected to remain around 4% by the end of 2026, with a near-term dip anticipated due to rate cuts [12][40] - Management highlighted the importance of maintaining a balance between loan growth and capital generation, emphasizing disciplined capital deployment [31][32] Other Important Information - The company repurchased $23.1 million of its stock in Q4 2025, totaling 2.1 million shares for the year [6] - Jane Grebenc, Bank President and Chief Revenue Officer, will retire at the end of March 2026, marking a significant leadership transition [10] Q&A Session Summary Question: What are the expectations for net charge-offs and provisions in 2026? - Management expects charge-off guidance to be 25-30 basis points, with $1.5 million left to resolve on the dealer floor plan loan [19][20] Question: Can we expect additional loans to be moved off the balance sheet in 2026? - Management indicated that the loan sale is more of a one-off situation, focusing resources on other markets [23][24] Question: What are the expectations for loan growth in 2026? - The company anticipates loan growth to continue at a similar pace as 2025, despite elevated payoffs [28][30] Question: How should we think about the stock buyback strategy? - The buyback strategy is sensitive to stock price, with intentions to utilize the authority aggressively while maintaining capital ratios [31][57] Question: What is the outlook for NIM and deposit costs? - Management expects a dip in NIM in Q1 2026, with a gradual recovery to around 4% by year-end [60][61]

Financial Data and Key Metrics Changes - The company reported net earnings of $83 million or $0.64 per share for the fourth quarter, with an annualized return on average assets of 1.34% and an adjusted return on average tangible common equity of 17.6% [3][10] - Pre-provision net revenue reached a record $111 million, representing an ROA of 1.78% [3][10] - Revenue increased to a record $226 million, driven by record net interest income of $197 million and non-interest income of $28.3 million [10] Business Line Data and Key Metrics Changes - The commercial loan team generated total new loan production of $3.2 billion in 2025, with net commercial loan growth of 5.5% for the year [4] - Average non-interest-bearing deposits grew by 2% annualized, contributing to the overall growth in core deposits, which increased by $260 million or 6.6% annualized [5] - Non-interest income increased to $28.3 million, with significant contributions from the insurance agency and SBA loan sales [7][8][15] Market Data and Key Metrics Changes - The company experienced a favorable improvement in non-performing assets, which declined to 0.32% of total assets [6][14] - The average cost of total deposits decreased to 2.1%, while the total cost of funds decreased to 2.34% [13] Company Strategy and Development Direction - The company plans to continue investing in revenue-producing talent across various platforms, including middle market banking, treasury management, SBA, wealth management, and insurance [8][9] - A core system conversion is scheduled for the fall of 2026 to enhance scalability and digital capabilities [9][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum and improving profitability, with expectations for loans and deposits to grow in the 4%-6% range for 2026 [18] - The competitive landscape for deposits remains challenging, but the company is focused on maintaining its core model and capturing market share [36] Other Important Information - The company announced a new share repurchase authorization allowing for the buyback of an additional 2 million shares [8] - The tangible book value per share increased by 3.8% to $15.70, and the tangible common equity ratio rose to 8.48% [17] Q&A Session Summary Question: Inquiry about the effective tax rate and tax credit investments - Management clarified that the effective tax rate is projected to be approximately 29% for 2026, with benefits from tax credit investments realized throughout the year [23][25] Question: Discussion on capital deployment priorities - Management indicated that organic growth remains the primary focus, with potential considerations for dividends and investments in insurance and wealth platforms [26][27] Question: Insights on deposit competition and its impact - Management acknowledged heightened competition for deposits but emphasized their strong performance in core deposits and the ability to capture market share [36] Question: Trends in the commercial real estate (CRE) market - Management noted a healthier CRE market and expressed no interest in acquiring portfolios from competitors, focusing instead on organic growth [40] Question: Potential for loan yields to increase - Management indicated that there is potential for yields to improve as the pipeline yield increases and backflow repricing occurs [45] Question: Plans for geographic expansion - Management expressed interest in expanding into adjacent geographies, including Long Island and the Philadelphia suburbs, while already having teams in those areas [50]

Core Insights - Orrstown Financial Services, Inc. reported a net income of $21.5 million for Q4 2025, a slight decrease from $21.9 million in Q3 2025, but a significant increase from $13.7 million in Q4 2024 [1][9] - For the full year 2025, net income reached $80.9 million, up from $22.1 million in 2024, with diluted earnings per share increasing to $4.18 from $1.48 [2][9] - The company achieved its highest annual net income in history, driven by strong margin performance and growth in noninterest income [3] Financial Performance - Net interest income for Q4 2025 was $50.5 million, slightly down from $51.0 million in Q3 2025, with a net interest margin of 4.00% compared to 4.11% in the previous quarter [10][9] - Noninterest income increased by $1.0 million to $14.4 million in Q4 2025, attributed to growth in wealth management and swap fee income [17][18] - Noninterest expenses rose to $37.4 million in Q4 2025 from $36.3 million in Q3 2025, primarily due to increased healthcare and professional service costs [19] Balance Sheet Highlights - Loans held for investment increased by $41.0 million to $4.0 billion as of December 31, 2025, with commercial loans growing by approximately 3% annualized [4] - Investment securities rose by $62.3 million to $952.7 million, with purchases of $124.9 million during Q4 2025 [5] - Total deposits decreased by $4.8 million to $4.5 billion, with a loan-to-deposit ratio of 89% [6] Credit Quality - The allowance for credit losses on loans decreased to $47.7 million, representing 1.19% of total loans [15][29] - Classified loans decreased by $5.7 million to $58.4 million, while non-accrual loans increased to $28.0 million [16] Capital and Ratios - Shareholders' equity increased to $591.5 million from $571.9 million, with a tangible common equity ratio of 9.0% [23][24] - The company's capital ratios improved, with tier 1 common equity at 11.5% and total risk-based capital at 13.3% as of December 31, 2025 [25][26]