Key Points SoFi’s fintech platform continues to attract millions of new users. It’s expanding its fee-based ecosystem to reduce its dependence on interest income. Its stock looks reasonably valued, but Wall Street’s expectations might be too high. 10 stocks we like better than SoFi Technologies › SoFi's (NASDAQ: SOFI) stock has nearly doubled in value over the past 12 months. The fintech company impressed the market again, gaining more users, growing its revenue at double-digit rates, and expandin ...

Core Insights - The share of below-3% mortgages has decreased to 20.0% in Q3, the lowest since Q1 2021, down from 24.6% at the peak in Q1 2022 [1] - The overall share of mortgages below 4% has dropped to 51.5%, the lowest since Q4 2020, as homeowners are selling their homes due to life changes [5] - The share of 6%-plus mortgages rose to 21.2% in Q3, the highest since Q3 2015, indicating a significant shift in the mortgage landscape [17] Mortgage Rate Trends - The share of 3% to 3.99% mortgages has declined to 31.5%, the smallest since Q2 2019, reflecting a broader trend of rising mortgage rates [2] - The share of 4.0% to 4.99% mortgages has decreased to 17.1%, the lowest since 2013, showing that many homeowners have refinanced into lower-rate categories [12] - The share of Adjustable-Rate Mortgages (ARMs) has remained low, dipping to 4.0% in Q3, down from over 10% in 2013 [8] Market Dynamics - The "lock-in effect" is causing homeowners with ultra-low interest rates to hesitate in selling their homes, impacting real estate transactions and mortgage originations [21][22] - Despite the lock-in effect, life events are still prompting some homeowners to sell, gradually unlocking the housing market [25] - The ultra-low mortgage rates, which were below inflation, contributed to a significant increase in home prices, creating a challenging environment for potential buyers [20][26][27]

Core Insights - Columbia Banking System is experiencing a strategic shift with a focus on capital accumulation, margin expansion, and significant share buybacks despite slowing headline profits [1][12] Company Overview - Columbia Banking System operates as a regional financial institution with a strong presence in the Pacific Northwest and California, offering a diversified banking model that includes both lending and non-interest income streams [6][9] - The company has recently completed a transformative acquisition, increasing total assets to approximately $67.5 billion and achieving a net interest margin of 3.84%, up from 3.56% a year earlier [10] Financial Performance - For the trailing twelve months (TTM), Columbia Banking System reported revenue of $2.07 billion and net income of $478.68 million, with a dividend yield of 5% [4] - The company’s GAAP EPS fell to $0.40 from $0.73 in the prior quarter due to merger and restructuring costs, but the operating EPS was reported at $0.85, indicating strong normalized earnings power [11] Investment Activity - HoldCo Asset Management increased its stake in Columbia Banking System by purchasing 1.24 million shares valued at $31.48 million, bringing its total holdings to 5.72 million shares worth $147.30 million as of September 30 [2][3] - Columbia Banking System now represents 15.55% of HoldCo's $947.56 million assets under management (AUM) [3] Strategic Initiatives - The management has authorized a $700 million share repurchase program through late 2026, reflecting confidence in the bank's ability to generate excess capital even after a major acquisition [12] - The bank's core deposit growth increased by approximately $14 billion quarter over quarter, reaching $55.8 billion, largely attributed to the recent acquisition [10]

The rates that individual customers pay depend on their credit history. Banks and other lenders charge more to those with lower credit scores or curtail their lending to higher-risk customers when the economy wobbles. Key Takeaways The Federal Reserve is leaning toward cutting interest rates again in 2026, but that doesn't mean that all consumer borrowing costs would fall equally. Credit cards and high-yield savings accounts are more closely tied to Fed policy, as the Fed has a heavier influence over short- ...

The Toronto-Dominion Bank (NYSE:TD) is included among the 15 Global Dividend Stocks to Diversify Your Portfolio. National Bank Turns More Positive on Toronto-Dominion Bank (TD) Photo by Annie Spratt on Unsplash On December 18, National Bank analyst Gabriel Dechaine upgraded The Toronto-Dominion Bank (NYSE:TD) to Outperform from Sector Perform and set a C$134 price target. A few days earlier, on December 4, the bank announced a 3% increase in its quarterly dividend to C$1.08 per share. That move came ev ...

With new car prices still far higher than most Americans can pay in cash, car-loan delinquency rates are expected to rise for the fifth straight year in 2026, according to TransUnion’s TRU 2026 consumer-credit forecast, though increases have become progressively smaller. The report estimates that credit-card delinquencies will remain relatively stable, while mortgage delinquencies will tick up due to a modest rise in unemployment.Americans will head into the new year relying on debt more than ever before. O ...

San Francisco, California-based Wells Fargo & Company (WFC) is a leading financial services firm with a broad footprint across consumer and commercial banking, lending, and wealth and investment management. With a market cap of $292 billion, the bank serves millions of customers through its extensive branch network and digital platforms, with core businesses spanning retail banking, mortgages, credit cards, corporate banking, and advisory services. The financial sector giant is expected to release its fo ...

Core Insights - Canadian banking is undergoing significant changes, including consolidation among smaller players, the rise of tech-based competitors, and government initiatives aimed at increasing competition [1][7][6] - The government has made commitments to enhance competition through open banking legislation, which is expected to empower consumers by giving them control over their financial data [2][4][3] Group 1: Government Initiatives - The Canadian government has introduced legislation to advance open banking, which aims to foster competition in the financial sector [4][6] - The budget included measures to ban fees for switching investment and registered accounts, which currently cost consumers around $150 [9] - The Financial Consumer Agency of Canada has been tasked with examining the structure and transparency of fees charged by banks [10] Group 2: Industry Dynamics - The emergence of open finance is seen as a transformative force in the Canadian banking landscape, allowing consumers to manage multiple accounts and switch providers more easily [3][4] - Recent consolidation trends, such as RBC's acquisition of HSBC Canada and National Bank's purchase of Canadian Western Bank, raise questions about competition but do not necessarily indicate a reduction in market competitiveness [7][8] - Consumer empowerment, driven by transparency in fees and ease of switching banks, is crucial for maintaining competition in the sector [9][8]

Zillow Group (Z) remains well off its recent highs after Alphabet's (GOOG) (GOOGL) Google reportedly tested the placement of sales ads for homes directly in its search results. However, several banks argued that Zillow won't be affected very much by this change, and at least one contended that Google may not be able to continue with the practice. Meanwhile, investment bank Bernstein, which reportedly has the highest price target on the Street for the name, appears to be sticking with its bullish outlook. B ...

Financial Sector Performance - The financial sector has shown strong performance in 2025, with the XLF gaining 13% this year and over 65% in the last three years [1] - Major banks such as JP Morgan, Bank of America, Wells Fargo, and Goldman Sachs have reached new all-time highs in December [1] Outlook for 2026 - There is optimism that the strength in financials could continue into 2026, particularly if the Federal Reserve maintains an accommodative rate policy [2][3] - Lower interest rates are expected to stimulate mortgage activity, benefiting both large and regional banks [3][4] Impact of Interest Rates - Lower rates are anticipated to increase mortgage refinancing and purchasing activity, which in turn supports ancillary businesses related to home ownership [4][5] - The current environment may not encourage savings in money markets, but there remains a significant amount of capital in money markets that could rotate back into equities [6] Regional vs. Large Banks - Regional banks are more vulnerable to issues in commercial real estate, which is a significant concern due to the resetting of loans issued before 2020 at higher rates [7][8] - Large banks are better positioned to withstand potential challenges in 2026 compared to regional banks [9] Technological Adaptation - There is a call for banks to invest in decentralized finance technologies, such as blockchain and stable coins, to remain competitive in the future [10][11] - The shift towards decentralized finance is seen as a long-term trend that banks need to prepare for now [11]