WEST PALM BEACH, Fla., Feb. 24, 2026 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”) today announced that Aulene Wessel has been named Senior Vice President and Chief Accounting Officer, effective February 23, 2026. Ms. Wessel reports to Sean O’Neil, Executive Vice President and Chief Financial Officer of Onity. Ms. Wessel is responsible for providing strategic leadership of the controllership function, overseeing all core accounting operations, internal controls, technical acco ...

Financial Data and Key Metrics Changes - Net income for the fourth quarter was $3.9 million, with diluted EPS of $0.63, up $0.08 or approximately 15% year-over-year [4] - For the full year, GAAP EPS was $2.19, a 27% increase from $1.72 in 2024, marking the second-highest per-share earnings performance in the last 20 years [4] - Tangible book value per share increased to $18, up from $16 last year, representing a 12.5% increase [5] Business Line Data and Key Metrics Changes - Net interest income for the quarter totaled $12.7 million, a nearly 17% increase from $10.9 million in Q4 2024 [5] - Loan growth for the quarter was $70 million, an annualized increase of 25%, with year-over-year growth of $133.9 million or 12.8% [6] - Non-interest income decreased by 18.6% year-over-year to $3.7 million, primarily due to decreased mortgage servicing rates [12] Market Data and Key Metrics Changes - Total deposits increased by $45 million or 14% on an annualized basis in the quarter, with year-over-year growth of nearly $155 million or 13% [7] - Mortgage originations for the quarter were $72.4 million, down from the prior year but up compared to the linked quarter [9] - The company held approximately $50 million in excess liquidity and had access to $160 million in outstanding debt capacity [8] Company Strategy and Development Direction - The company aims to support prudent growth and long-term value creation through a well-capitalized balance sheet and diversified business lines [4] - Strategic initiatives focus on growing and diversifying revenue, operational excellence, and maintaining asset quality [10] - The Marblehead acquisition has transitioned from integration to execution, providing a foundation for organic growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the loan pipeline and the stability of the core deposit base, which supports performance improvement [30] - The company anticipates a gradual decrease in net interest margin in 2026 due to higher funding costs [38] - Management expects to maintain a positive operating leverage of 1.5-2 times in 2026, with a focus on expense control [55] Other Important Information - The company announced a dividend of $0.155 per share, marking the thirteenth consecutive year of increasing annual dividend payouts [30] - Total assets reached $3.6 billion, with a diversified asset base providing revenue diversification [8] Q&A Session Summary Question: Can you comment on margin and outlook? - Management noted that deposit pricing is a concern due to competitive pressures, forecasting a gradual decrease in net interest margin in 2026 [38] Question: What is the outlook for mortgage production? - Management expects low to mid single-digit growth in mortgage production for 2026, with potential for higher volumes if additional lenders are added [50][51] Question: How do you view expense growth for 2026? - Management anticipates expense growth to be maintained in the 3.5%-4% range, with a focus on improving operating leverage [54][56] Question: What is the current state of credit quality? - Management expects continued improvement in credit quality as existing credits are resolved, maintaining a robust internal loan review process [66]

Financial Data and Key Metrics Changes - Net income for Q4 2025 was $3.9 million, with diluted EPS of $0.63, up $0.08 or approximately 15% year-over-year [4] - For the full year, GAAP EPS was $2.19, a 27% increase over 2024 EPS of $1.72 [4] - Tangible book value per share increased to $18, up from $16 last year, representing a 12.5% increase [5] - Net interest income for Q4 totaled $12.7 million, a nearly 17% increase from $10.9 million in Q4 2024 [5] Business Line Data and Key Metrics Changes - Loan growth for Q4 was $70 million, a 25% annualized increase, with year-over-year growth of $133.9 million or 12.8% [6] - Total deposits increased by $45 million in Q4, a 14% annualized increase, and year-over-year deposit growth was nearly $155 million or 13% [7] - Non-interest income decreased by 18.6% year-over-year to $3.7 million, primarily due to decreased mortgage servicing rates [12] Market Data and Key Metrics Changes - Mortgage originations for Q4 were $72.4 million, down from the prior year but up compared to the linked quarter [9] - The company achieved a loan-to-deposit ratio of 90.3%, which remains within the targeted operating range of 90%-95% [26] Company Strategy and Development Direction - The company aims to leverage its well-capitalized balance sheet and diversified business lines to support prudent growth and long-term value creation [4] - Strategic initiatives focus on growing and diversifying revenue, enhancing operational efficiency, and maintaining asset quality [10] - The Marblehead acquisition has transitioned from integration to execution, providing a foundation for organic growth [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the loan pipeline and the stability of the core deposit base, which supports performance improvement [29] - The company anticipates a gradual decline in net interest margin (NIM) in 2026 due to higher funding costs [38] - Management expects to maintain a positive operating leverage of 1.5-2 times in 2026, despite anticipated expense growth of 3.5%-4% [54] Other Important Information - The company announced a dividend of $0.155 per share, marking the thirteenth consecutive year of increasing annual dividend payouts [29] - The allowance for credit losses remained robust at 1.36% of total loans, providing 352% coverage of non-performing assets [19] Q&A Session Summary Question: Can you elaborate on margin and outlook? - Management noted that deposit pricing is a concern due to competitive pressures, forecasting a gradual decline in NIM by 5-7 basis points in 2026 [38] Question: What is the outlook for mortgage production growth? - Management anticipates low to mid single-digit growth in mortgage production for 2026, with potential to reach $310-$375 million depending on staffing and market conditions [50][51] Question: How do you view expense growth for 2026? - Management expects expense growth to be maintained at 3.5%-4%, with a focus on improving operating leverage [54]

Core Insights - Bank of the James Financial Group, Inc. reported record quarterly earnings driven by loan growth, stable funding costs, and exceptional asset quality [1][3][4] Financial Performance - Earnings per share for Q3 2025 were $0.61, up from $0.44 in Q3 2024, while year-to-date earnings per share remained stable at $1.39 [2][32] - Total interest income increased to $11.77 million in Q3 2025, a 1.8% rise from $11.56 million in Q3 2024, and $34.64 million for the first nine months of 2025, up 4.9% from $33.01 million in the same period last year [2][5] - Net interest income rose 10.5% to $8.30 million in Q3 2025, compared to $7.51 million in Q3 2024, and increased 12.62% to $24.27 million for the first nine months of 2025 [2][4][32] - Interest expense decreased by 14.3% to $3.47 million in Q3 2025 from $4.05 million in Q3 2024, reflecting effective rate management [7][32] Asset Quality and Growth - Loans, net of the allowance for credit losses, grew to $653.29 million at September 30, 2025, from $636.55 million at December 31, 2024, with commercial real estate loans leading the growth [2][15][19] - The ratio of nonperforming loans to total loans was 0.29% at September 30, 2025, indicating strong asset quality [19][20] - Total assets reached $1.02 billion at September 30, 2025, up from $979.24 million at December 31, 2024, primarily due to loan growth and increases in securities [13][22] Shareholder Value - Stockholders' equity increased to $76.97 million at September 30, 2025, from $64.87 million at December 31, 2024, with a book value per share rising to $16.94 [23][30] - The Company declared a quarterly dividend of $0.10 per common share, reflecting its commitment to returning value to shareholders [2][3] Revenue Streams - Noninterest income for Q3 2025 was $4.17 million, compared to $3.82 million in Q3 2024, driven by strong contributions from commercial treasury services and wealth management [10][32] - The balanced revenue stream from various services has provided financial stability, even amid economic uncertainty [4][10]