Core Insights - Small-cap stocks are showing signs of recovery, which may indicate a bullish trend as the market approaches 2026 [3][4] - The article discusses four small-cap stocks with dividend yields ranging from 7.1% to 13.3% [5] Small-Cap Market Overview - Small-cap stocks have underperformed compared to larger stocks over the past decade, with a brief rally during the COVID reopening in 2020 [3] - Factors such as rising interest rates and a shift towards safer mega-cap stocks have contributed to the underperformance of small caps [3][4] - The recent focus on potential Federal Reserve rate cuts has led to increased interest in small-cap stocks [3][4] Featured Small-Cap Stocks - **Nuveen Churchill Direct Lending (NCDL)**: Offers a 13.0% dividend yield and is part of the business development companies (BDCs) sector, which is required to distribute at least 90% of earnings as dividends [5][6] - **UWM Holdings (UWMC)**: Provides a 7.1% dividend yield and is the largest home mortgage lender in the U.S., focusing on wholesale lending [11][12] - **Redwood Trust (RWT)**: Has a 12.7% dividend yield and is involved in jumbo residential mortgages and single-family rental loans, with a focus on improving earnings in the coming years [15][16] - **Franklin BSP Realty Trust (FBRT)**: Offers a 13.3% dividend yield and primarily deals in commercial mortgage-backed securities, with a recent acquisition expected to enhance its earnings potential [19][21] Financial Performance and Outlook - NCDL's high yield is supported by regular and supplemental dividends, although the latter have been replaced with a traditional payout schedule [6][10] - UWMC is positioned to benefit from lower mortgage rates, with plans to scale operations as rates decline [12][13] - Redwood Trust has been repurchasing shares and is on "dividend growth watch," indicating potential for future dividend increases [18] - FBRT's recent acquisition of NewPoint Holdings is expected to contribute positively to its distributable earnings, despite concerns over dividend coverage [21][22]

We came across a bullish thesis on loanDepot, Inc. on wallstreetbets subreddit by PaperHandsTheDip. In this article, we will summarize the bulls’ thesis on LDI. loanDepot, Inc.'s share was trading at $2.7100 as of December 1st. LDI’s forward P/E was 26.95 according to Yahoo Finance. 15 Best Mortgage Lenders in America LoanDepot, Inc. (LDI) is a leading U.S. mortgage originator and refinancer that issued around $30 billion in loans last year, down from approximately $100 billion in 2020. The decline refle ...

UWM’s billionaire CEO is selling stock again—but the real story for long-term investors lies in the numbers powering the business.Mat Ishbia, President and CEO of UWM Holdings Corporation (UWMC +1.39%), reported the open-market sale of 1.6 million shares of the major wholesale mortgage lender between Wednesday and Friday, according to a SEC Form 4 filing.Transaction SummaryMetricValueShares sold1,629,785 (indirect)Transaction value$9.4 millionPost-transaction shares3,053,843 (indirect); 279,989 (direct)Post ...

Economic & Banking Industry Overview - Domestic demand continues to strengthen, as shown by GDP and Domestic Demand growth rates[10] - Total imports and capital imports experienced significant fluctuations[11] - Planned investment by CCG (Corporación Chilena del Cobre) is projected to be US$72389 million in 2025 (E)[13] - Inflation and interest rates are normalizing[15] Banco de Chile's Performance - Banco de Chile's forecast for 2025 includes a GDP growth of 25%, CPI of 39%, and an overnight rate of 450%[20] - The banking industry's net income for 3Q25 was CLP 1321 billion[23] - Banco de Chile's net income market share as of September 2025 is 221%[47] - Banco de Chile's net income for the period attributable to equity holders was CLP 292914 million in 3Q25, a 17% increase compared to 3Q24[104] - The bank's CET1 ratio is 142%, and the total Basel III capital ratio is 180%[76] Strategic Priorities and Financial Results - The bank aims for a cost-to-income ratio of ≤42% and targets top 1 market share in demand deposits, commercial loans, and consumer loans[37] - Total loans reached CLP 396 trillion in 3Q25, with a YoY increase of 37%[60] - Operating expenses to operating income ratio is 3756%[110] - The bank's expected credit losses (ECLs) decreased by 10%[78]

Financial Data and Key Metrics Changes - The company reported a net income of $12.1 million and adjusted EBITDA of $211.1 million, both up from Q2 and Q1 of the year [12][15] - Loan production volume reached $41.7 billion, also an increase from Q2 and Q1, with a gain margin of 130 basis points, which is higher than previous quarters [12][15] - The company experienced a $160 million decline in fair values but emphasized the importance of adjusted EBITDA as a key performance indicator [11][12] Business Line Data and Key Metrics Changes - The company closed $25.2 billion in purchase loans and $16.5 billion in refinancing, indicating a strong performance in both segments [8][12] - The company has consistently maintained a purchase volume of approximately $100 billion annually, demonstrating stability in its purchase business [8][12] Market Data and Key Metrics Changes - The company capitalized on a brief window of opportunity in the market, achieving record lock days with $4.8 billion locked in a single day [3][4] - The company noted that its operational efficiency allowed it to handle increased volume seamlessly, maintaining strong service levels [4][12] Company Strategy and Development Direction - The company is focused on investing in technology and the broker channel to solidify its competitive advantage [4][11] - Plans to bring servicing in-house by early 2026 are underway, which is expected to enhance consumer loyalty and operational efficiency [17][37] - The partnership with BOLT aims to improve servicing and provide exclusive benefits to mortgage brokers [17][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to dominate the market, particularly in a declining rate environment [19][65] - The company anticipates Q4 production between $43 billion and $50 billion, with an increase in gain margin guidance to 105-130 basis points [19][28] Other Important Information - The company completed a successful offering of $1 billion in unsecured notes to enhance liquidity and support growth [13][14] - The company maintains a strong liquidity position with total available liquidity of $3 billion [13][14] Q&A Session Summary Question: Follow-up on bringing servicing in-house and BOLT partnership - Management clarified that the BOLT partnership focuses on enhancing servicing capabilities and improving consumer experience, with rewards for mortgage payments [21][22] Question: Room for improvement with Mia - Management acknowledged that while Mia has exceeded expectations, there is always room for improvement as the technology continues to evolve [25][26] Question: Guidance for gain-on-sale margin - Management indicated that the margin is influenced by market conditions and that they have strategically increased guidance based on historical performance [28][29] Question: Trends in conventional purchase loans - Management noted that while purchase loans may fluctuate, the company remains dominant in the purchase market, with refis providing significant upside potential [30][31] Question: Servicing in-house timeline - Management confirmed that all new loans in 2026 will be serviced in-house, with a gradual transition for existing loans [37][38] Question: Hedging strategy update - Management stated that they do not hedge MSRs and focus on core business operations instead [49][50] Question: Impact of technology on refinancing - Management acknowledged that technology reduces friction in the refinancing process, making it easier for consumers to refinance [59][65]

Financial Performance - GAAP net loss was $95 million, or $007 per share[4] - Distributable loss was $215 million, or $015 per share[4] - Distributable earnings prior to realized gains and losses were $59 million, or $004 per share[4] Loan Portfolio - Total loan commitments were $45 billion as of September 30, 2025, compared to $50 billion as of June 30, 2025[6] - The weighted average all-in yield was 67%[6] - Floating rate loans comprised 97% of the portfolio[6] - Senior loans also represented 97% of the portfolio[6] Loan Resolution - During the quarter, four loans were resolved, totaling $7160 million of UPB[4] - Year-to-date, 18 loans were resolved, totaling $22 billion of UPB, with $808 million in partial loan repayments[4] Liquidity and Leverage - Total available liquidity increased to $385 million as of November 4, 2025, including $340 million in cash[4, 15] - Unfunded loan commitments decreased to $348 million as of September 30, 2025, an ~82% reduction from December 31, 2022[4, 21] - Net debt to equity ratio decreased to 19x[4] - Total leverage ratio decreased to 24x[4] Risk Management - Risk rated 5 loans had a total UPB of $978 million, with an average specific CECL reserve of 172%[4, 38] - Risk rated 4 loans had an average general CECL reserve of 99%[4, 41]

Core Insights - The Zacks Mortgage & Related Services industry is experiencing benefits from declining mortgage rates, which are driving improvements in purchase originations and refinancing volumes [1][3][4] - Increased competition is pressuring mortgage servicers to cut prices, leading to reduced sales margins [1][5] - Companies like Rocket Companies and LendingTree are well-positioned to navigate the challenges posed by the competitive landscape [1][16][19] Industry Overview - The Zacks Mortgage & Related Services industry includes providers of mortgage-related loans, refinancing, and loan-servicing facilities, with non-banks gaining market share as banks retreat due to compliance and capital requirements [2] - The industry is heavily influenced by Federal Reserve interest rates, which affect customer decisions regarding mortgage applications [2] Trends - Mortgage rates have decreased significantly, with the 30-year fixed-rate mortgage dropping from above 7% to around 6%, stimulating renewed interest in purchase applications [3] - The Federal Reserve's recent rate cuts are expected to improve housing affordability, leading to increased demand for mortgages and refinancing activities [4] - The U.S. single-family mortgage debt is projected to grow due to house price appreciation, although competition may hinder profitability for many originators [5] Performance Metrics - The Zacks Mortgage & Related Services industry holds a Zacks Industry Rank of 95, placing it in the top 39% of over 243 Zacks industries, indicating positive prospects [6] - Over the past year, the industry has underperformed compared to the broader Zacks Finance sector and the S&P 500, with a growth of 15.9% compared to 16.7% and 20.5% respectively [8][9] Valuation - The industry currently trades at a price-to-book (P/B) ratio of 6.58X, lower than the S&P 500's 8.93X, indicating a premium compared to the broader Zacks Finance sector's P/B of 4.27X [12][14] Company Highlights - **Rocket Companies**: This fintech platform is increasing its market share through process optimizations and recently acquired Mr. Cooper Group, enhancing its position in the mortgage servicing and origination space. The Zacks Consensus Estimate for its 2025 earnings is 25 cents per share, reflecting an 8.7% increase year-over-year, with revenues expected to rise 16.6% [16][17] - **LendingTree**: The company is focusing on improving purchase conversion rates and diversifying its offerings beyond mortgages. The Zacks Consensus Estimate for its 2025 earnings indicates a 36.9% year-over-year increase, with revenues anticipated to grow 14.9% [19][20]

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $46 million or $0.74 per diluted share for Q3 2025, with a return on average assets of 1.2% and return on average equity of 8.35% [4][13] - Net interest income increased by $7.4 million or 7% year-over-year, driven by improving deposit costs and growth in higher yielding commercial loans [16][19] - The allowance for credit losses declined by $2.8 million to $95 million, resulting in a coverage ratio of 1.16% [13][14] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $55 million of pre-tax income on $12.6 billion of average assets, with a return on average assets of 1.34% [4][5] - PrimeLending reported a pre-tax loss of $7 million due to subdued mortgage origination volumes and pressure on margins [6][8] - Hilltop Securities Inc. generated pre-tax income of $26.5 million on net revenues of $144.5 million, achieving a pre-tax margin of 18% [8][10] Market Data and Key Metrics Changes - Total core deposits at PlainsCapital increased by 6% on a linked quarter basis, attributed to seasonal cash inflows [5] - Existing home sales across the country reached their lowest level in over 30 years, impacting PrimeLending's performance [7][20] - Hilltop Securities experienced solid growth in public finance, structured finance, and wealth management, with net revenues increasing significantly year-over-year [9][21] Company Strategy and Development Direction - The company aims to focus on reducing fixed expenses and recruiting talented mortgage originators to restore profitability at PrimeLending [8][20] - Hilltop Securities continues to invest in core areas of expertise and leverage its national brand to serve clients effectively [10][21] - The company is exploring opportunities for growth through potential M&A in the Texas market, which has seen increased interest from out-of-market entrants [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong capital levels with a common equity tier one capital ratio of 20% and tangible book value per share increasing to $31.23 [10] - The outlook for 2025 reflects current assessments of the economy and market conditions, with expectations for continued challenges in the mortgage market [25] - Management remains vigilant regarding credit risks and is focused on early detection and aggressive workout strategies [24] Other Important Information - The company returned $11 million to stockholders through dividends and repurchased $55 million in shares during the quarter [10] - A leadership transition is occurring at PlainsCapital Bank, with the promotion of Brent Randall to Chief Credit Officer [11] Q&A Session Summary Question: NII guidance and margin expectations - Management explained that the NII guidance was not increased due to expected rate cuts and potential asset contraction, emphasizing the balance sheet's asset sensitivity [27][28] Question: Stock buyback strategy and M&A outlook - Management confirmed a consistent approach to share repurchases given the current stock price and excess capital, while also exploring M&A opportunities in Texas [30][31] Question: Auto portfolio exposure - Management acknowledged subprime exposure in the auto portfolio but stated that they are closely monitoring and managing the situation [32][38] Question: Broker-dealer fee income and future expectations - Management highlighted strong performance across all broker-dealer business lines in Q3 but anticipated a reversion to lower pre-tax margins in the future [40][41]

Financial Performance & Forecast - The company reported a net loss of $36 million, but an adjusted net loss of $23 million for Q3 2025[31] - Diluted loss per common share was $(0.11), with an adjusted diluted loss of $(0.07)[31] - The forecast for 2025 includes a net interest income of $1.7 billion to $1.75 billion and an adjusted diluted EPS of ($0.41) to ($0.36)[33] - The company anticipates a return to profitability in the fourth quarter of 2025[30] Commercial Banking & Loan Portfolio - Commercial & Industrial (C&I) loans held for investment totaled $14.874 billion as of September 30, 2025, with a quarterly increase of $448 million, or 3.1%[10] - Specialized Industries & Corporate/Regional Commercial Banking saw a $1.108 billion increase, or 27.5% QoQ, reaching $5.142 billion[10] - Multi-family loans held-for-investment decreased by $1.5 billion, or 4.6% QoQ[9] - CRE (Commercial Real Estate) decreased by $0.5 billion, or 4.4% QoQ[9] Asset Quality & Capital - Net charge-offs decreased by $44 million, reducing the net charge-off ratio by 26 basis points to 0.46%[9] - The Common Equity Tier 1 (CET1) ratio stands at 12.45%[47] - Deposits decreased by $0.6 billion, or 0.9% quarter over quarter, primarily driven by a $2.0 billion decrease in brokered deposits[53]

Financial Performance - Colony Bankcorp reported net income of $5.82 million, with adjusted earnings per share of $0.47 for the third quarter of 2025[22] - The company's net interest margin expanded for the fourth consecutive quarter, reaching 3.17%[23] - The operating return on average assets improved to 1.06%, and the operating return on average equity was 11.03%[23] - Tangible book value per common share increased to $14.20[23] Growth and Expansion - Loans increased by $43.5 million, representing an annualized growth rate of 9%[23] - Total deposits increased by $28.1 million[23] - The company expects to return to an 8-12% organic growth run rate by the end of 2025[38] Mergers and Acquisitions - Colony Bankcorp is set to merge with TC Bancshares, Inc, with pro forma assets reaching $3.8 billion[44] - The implied aggregate transaction value is $86.1 million, or $21.73 per TC Bancshares common share[44] - The acquisition is estimated to result in FY2026 and FY2027 EPS accretion of approximately 8.5% and 11.9%, respectively[44] Liquidity and Capital - Total liquidity sources as of September 30, 2025, amounted to $1.3034 billion[58]