Financial Data and Key Metrics Changes - The company reported distributable earnings (DE) of $160 million or $0.42 per share for Q4 2025, with adjusted DE expected to be $0.49 after accounting for timing issues [5][6] - For the full year 2025, DE totaled $616 million or $1.69 per share, with adjusted DE at $1.95, slightly above the full-year dividend of $1.92 [8][9] - The company ended the year with a debt to undepreciated equity ratio of 2.4x, significantly lower than peers, and maintained liquidity of $1.4 billion [19][32] Business Line Data and Key Metrics Changes - Commercial and residential lending contributed DE of $176 million or $0.46 per share in Q4, with a funded loan portfolio growth to $16.6 billion [10][11] - Infrastructure lending generated DE of $27 million or $0.07 per share, with a record $2.6 billion in new loan commitments for the year [12][13] - The property segment recognized DE of $49 million or $0.13 per share, with a net unrealized fair value increase of $17 million in the affordable multifamily portfolio [14][15] Market Data and Key Metrics Changes - The company deployed $12.7 billion in 2025, with $6.4 billion in commercial lending, $2.6 billion in infrastructure lending, and $2.4 billion in net lease [9][10] - The commercial lending portfolio is expected to grow to a record $17 billion in Q1 2026, with a focus on stable assets like multifamily and industrial [22][23] - The company’s exposure to U.S. office loans is at a historical low of 8% of the asset base [23] Company Strategy and Development Direction - The company aims to resolve legacy credit issues, maintain a conservative balance sheet, and selectively grow high-return businesses to restore full earnings power [20][21] - The acquisition of the net lease business is expected to add long-term accreted assets with annual rent escalations of 2.3% [21][30] - The company is focused on improving operational efficiency through technology and data analytics to enhance productivity [33][49] Management's Comments on Operating Environment and Future Outlook - Management noted stabilization in credit markets and improving transaction activity, with expectations for a robust origination year in 2026 [20][21] - The multifamily market is anticipated to improve due to reduced supply and increasing demand, which will benefit borrowers [45][46] - Management expressed confidence in future earnings power, particularly from the net lease business and ongoing capital deployment [41][43] Other Important Information - The company completed a record $4.4 billion in corporate debt and equity transactions in 2025, enhancing liquidity and extending debt maturities [19][21] - The company’s insider ownership stands at approximately 6% or $380 million, indicating strong alignment with shareholder interests [32] Q&A Session Summary Question: Can you talk about the pace of increasing the CRE loan portfolio in 2026? - The company expects the loan portfolio on the CRE side to exceed $17 billion in Q1 2026, with a target to originate at least $6.5 billion this year [51][52] Question: What is your expectation for credit migration near term? - The company is focused on resolving individual assets and expects to manage credit migration carefully, with a goal to resolve most of the $1 billion in non-accruals this year [55][58] Question: Is there a point where you might consider selling the residential portfolio to free up capital? - The residential portfolio has significantly recovered in value, and the company is not currently considering a sale but will evaluate opportunities as market conditions change [73]

Core Insights - Rithm Capital Corp. (NYSE:RITM) is identified as a high-growth, low P/E stock with strategic progress made in 2025, resulting in 19% of earnings available for distribution to equity holders [1] - The company reported strong fourth-quarter and full-year results, highlighting durable momentum from acquisitions and a diversified alternative asset management platform, ending the year with over $100 billion in investable assets [2] - Net income for the fourth quarter was $53.1 million, or $0.09 per share, while earnings available for distribution totaled $418.9 million, or $0.74 per share; for the full year, net income reached $567.2 million, or $1.04 per diluted share, with earnings available for distribution of $1.3 billion, or $1.4 per common share [3] Strategic Positioning - As Rithm enters 2026, it is well-positioned for growth due to strategic investments across asset management, Newrez, Genesis, and its investment portfolio, providing a strong foundation to capture opportunities for clients and shareholders [4] - The company operates as a global asset manager and Real Estate Investment Trust (REIT), focusing on real estate, credit, and financial services sectors, managing investments in mortgage servicing rights, residential loans, commercial real estate, and consumer loans [5]

4Q25 Update (Nasdaq: BHRB) January 2026 1 Cautionary Statement Regarding Forward-Looking Information Cautionary Note Regarding Forward Looking Statements This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including with respect to (or based on) the beliefs, goals, intentions, and expectations of Burke & Her ...

Financial Performance - The company's total assets reached $7.9 billion[10] - Total gross loans amounted to $5.6 billion[10] - Total deposits were $6.4 billion[10] - The return on average assets was 1.50%[10] - The return on average equity was 14.88%[10] - Net income was $30.0 million[20] - Diluted earnings per share (EPS) were $1.97[20] Key Ratios and Metrics - The loan-to-deposit ratio was 86.7%[20, 38] - Uninsured deposits represented 31.5% of total deposits[20, 38] - The efficiency ratio was 56.3%[20] - The total risk-based capital ratio was 15.37%[20] - Tangible book value per common share was $48.72, with a growth of 15.8% from 4Q24 to 3Q25[20, 21]

Financial Performance - Net income reached $299 million[20] - Diluted earnings per share (EPS) amounted to $197[20] - The net interest margin stood at 417%[20] - Return on average assets was 151%[10] - Return on average equity was 1550%[10] Balance Sheet & Capitalization - Total assets reached $81 billion[10] - Total gross loans amounted to $56 billion[10] - Total deposits reached $64 billion[10] - The loan-to-deposit ratio was 875%[20,37] - Uninsured deposits represented 307% of total deposits, totaling $196 billion[20,37] - Total risk-based capital ratio was 1526%[20]