Latest news with #Dividend
Yahoo
3 days ago
- Business
- Yahoo
Quiet but Consistent: How Norwood Financial (NWFL) Earned Its Spot Among Dividend Champions
Norwood Financial Corp. (NASDAQ:NWFL) was recently included on our list of Dividend Champion vs Aristocrats: 12 Under the Radar Stocks to Buy. An accountant reviewing a portfolio of asset-backed securities at the trading desk. In July, the company, along with PB Bankshares, announced that their boards have approved a merger agreement under which PB Bankshares will be merged into Norwood. The merger will create a combined institution with around $3.0 billion in assets, positioning it as a leading community bank serving Northeastern, Central, and Southeastern Pennsylvania. This move significantly broadens Norwood Financial Corp. (NASDAQ:NWFL)'s presence, extending its reach into faster-growing markets across Central and Southeastern Pennsylvania. The company recently announced earnings for its Q2 2025 and reported strong results. Its return on assets improved by 31 basis points to reach 1.06% compared to Q2 2024. Net interest margin rose 13 basis points from the previous quarter and 63 basis points year-over-year. Loan growth was strong, with annualized increases of 4.4% for the quarter and 8.2% year-to-date. Meanwhile, deposits expanded at a 15% annualized pace year-to-date, while the cost of deposits declined by 20 basis points since Q4 2024. Norwood Financial Corp. (NASDAQ:NWFL) ended the quarter with over $53 million available in cash and cash equivalents. On June 18, the company declared a quarterly dividend of $0.31 per share, which was in line with its previous dividend. Overall, it raised its payouts for 33 years in a row. The stock has a dividend yield of 5.05%, as of July 23. While we acknowledge the potential of NWFL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Landmark Bancorp Inc (LARK) Q2 2025 Earnings Call Highlights: Strong Net Income Growth and ...
Net Income: $4.4 million in Q2 2025, up from $3 million in Q2 2024. Diluted Earnings Per Share: $0.75, a 56% increase over the same quarter last year. Return on Average Assets: 1.11%. Return on Average Equity: 12.25%. Efficiency Ratio: 62.8% in Q2 2025. Gross Loans: Increased by $42.9 million or 16% annualized, totaling over $1.1 billion. Net Interest Income: $13.7 million, an increase of $564,000 from Q1 2025. Net Interest Margin: Increased 7 basis points to 3.83%. Allowance for Credit Losses: $13.8 million, representing 1.23% of total loans. Noninterest Income: $3.6 million, an increase of $268,000 from the prior quarter. Noninterest Expense: $11.0 million, an increase of $200,000 from the prior quarter. Deposits: Totaled $1.3 billion at June 30, 2025, a decrease of $61.9 million from the previous quarter. Stockholders' Equity: Increased by $5.7 million to $148.4 million. Book Value Per Share: Increased to $25.66 at June 30, 2025. Dividend: Declared a cash dividend of $0.21 per share. Warning! GuruFocus has detected 3 Warning Sign with LARK. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Landmark Bancorp Inc (NASDAQ:LARK) reported a strong net income of $4.4 million for Q2 2025, up from $3 million in the same period last year. Diluted earnings per share increased by 56% year-over-year to $0.75. The company achieved a return on average assets of 1.11% and a return on average equity of 12.25%. Total gross loans increased by $42.9 million or 16% on an annualized basis, contributing to a net interest income growth of 4.3% compared to Q1 2025. Landmark Bancorp Inc (NASDAQ:LARK) declared a cash dividend of $0.21 per share, marking the 96th consecutive quarterly cash dividend since its formation in 2001. Negative Points Net income decreased from $4.7 million in the prior quarter to $4.4 million in Q2 2025. Nonperforming loans increased by $3.7 million, totaling $17 million, primarily due to two commercial real estate credits placed on nonaccrual. Deposits decreased by $61.9 million on a linked quarter basis, with declines in interest, checking, and money market deposits. Interest income on investment securities decreased slightly due to a decline in average investment securities balances. Noninterest expense increased by $200,000 compared to the prior quarter, driven by higher data processing costs and increased losses at the captive insurance subsidiary. Q & A Highlights Q: Can you provide further commentary on the loan provisions and the outlook for non-performing loans over the next 6 to 12 months? A: Abigail Wendel, President and CEO, explained that the $1 million provision was primarily due to loan growth. The non-accrual loans are evaluated individually, and the recent increase was mainly due to a $2.6 million credit that has since been brought current. The trend is expected to improve in the third quarter. Q: Deposits decreased this quarter. Was this due to seasonality, and what is the strategy regarding Federal Home Loan Bank borrowings? A: Abigail Wendel noted that the decrease in deposits was partly seasonal. The bank is focusing on expanding customer relationships and gathering more deposits through its branch network. Mark Herpich, CFO, added that they have significant capacity with the Federal Home Loan Bank and Federal Reserve Bank, and the current borrowing levels are expected to decrease as investment portfolio cash flows improve. Q: What are the strategic initiatives for deposit growth in the second half of the year? A: Abigail Wendel highlighted plans to leverage their 29 bank locations across Kansas to enhance deposit delivery channels and deepen customer relationships. The bank aims to engage teams in initiatives to gather more deposits, primarily through the branch network. Q: How does the bank plan to support loan growth with its deposit base? A: Abigail Wendel emphasized the bank's focus on maintaining a high-quality deposit base to support strong loan demand. The bank is committed to aligning deposit growth with loan growth to ensure sustainable expansion. Q: Can you elaborate on the impact of the Federal Home Loan Bank borrowings on the bank's financials? A: Mark Herpich explained that the borrowings were slightly higher at quarter-end due to a one-day slip in brokered funding bids. However, the bank expects these levels to diminish as investment portfolio cash flows improve, reducing the need for borrowed funds. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
4 days ago
- Business
- Yahoo
Commerce Bancshares (CBSH): A Bank That Keeps Raising Its Dividend
Commerce Bancshares, Inc. (NASDAQ:CBSH) was recently included on our list of Dividend Champion vs Aristocrats: 12 Under the Radar Stocks to Buy. A financial advisor going over an investment trust portfolio with a couple. Commerce Bancshares, Inc. (NASDAQ:CBSH) is a regional bank holding company that provides a wide range of services, including banking, lending, payment processing, wealth management, and trust solutions. Its success is supported by a solid compliance structure, strong capital position, careful risk management practices, and a strong emphasis on serving its customers. The stock has surged by nearly 3% in the past 12 months. Commerce Bancshares, Inc. (NASDAQ:CBSH) reported strong earnings in the second quarter of 2025, with revenues of $448.4 million. The revenue saw a 6.7% growth from the same period last year and also beat analysts' estimates by $12.54 million. Commerce reported solid financial results for the second quarter, driven by its diversified business model and the strength of its team. The performance was supported by an increase in loans, healthy fee income, low credit costs, and ongoing discipline in managing expenses— factors that have consistently contributed to the company's long-term profit growth. Commerce Bancshares, Inc. (NASDAQ:CBSH) is a strong dividend payer. The company currently offers a quarterly dividend of $0.275 per share and has a dividend 1.76%, as of July 23. It has been rewarding its shareholders with 56 consecutive years of dividend growth. While we acknowledge the potential of CBSH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
PennyMac Mortgage Investment Trust (PMT) Q2 2025 Earnings Call Highlights: Navigating ...
Net Loss: $3 million net loss to common shareholders, or $0.04 loss per share. Dividend: $0.40 per share common dividend for the second quarter. Book Value Per Share: $15 as of June 30. Securitizations: Completed three securitizations totaling $1.1 billion UPB, retaining $71 million of new investments. Jumbo Loan Securitization: First since 2013, totaling $339 million UPB, retaining $82 million. MSR Investments: Account for approximately 47% of deployed equity. Correspondent Loan Acquisition Volume: $30 billion in the second quarter, up 30% from the prior quarter. Income Tax Expense: $9 million, primarily due to a $14 million non-recurring tax adjustment. Senior Notes Issuance: $105 million in unsecured senior notes due in 2030. Debt to Equity Ratio: 5.6 times, excluding non-recourse debt. Warning! GuruFocus has detected 9 Warning Signs with PMT. Release Date: July 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points PennyMac Mortgage Investment Trust (NYSE:PMT) successfully completed three securitizations of agency eligible investor loans totaling $1.1 billion UPB, retaining $71 million of new investments. PMT's diversified investment portfolio and strong risk management practices enabled effective management through volatile market conditions. The company has a synergistic partnership with PFSI, leveraging its best-in-class operating platform and large multi-channel origination business. PMT's MSR investments are expected to continue producing stable cash flows due to low refinancing incentives for borrowers. The company reported gains from organically created CRT investments and expects continued mid- to low-teens returns from these investments. Negative Points PMT reported a net loss to common shareholders of $3 million in the second quarter, or negative $0.04 per diluted common share. Interest rate sensitive strategies contributed to a pre-tax loss of $5 million, with fair value increases on MSR investments offset by losses in MBS and interest rate hedges. The company faced a $14 million non-recurring tax adjustment due to state apportionment changes. PMT's debt to equity ratio has increased, primarily due to growth in non-recourse debt related to private label securitization activity. The operating earnings run rate, although improved, remains slightly below the $0.40 dividend level, raising concerns about its sustainability. Q & A Highlights Q: Can you discuss the non-agency securitization opportunity and how returns progressed over the quarter? A: David Spector, CEO, explained that despite significant rate and spread volatility, non-agency subordinate MBS saw credit spread tightening. The returns remained stable in the mid- to low-teens, and these investments are expected to continue providing stable and accretive returns over time. Q: Why was the retained interest on the jumbo securitization higher compared to non-owner occupied loans? A: Daniel Perotti, CFO, noted that the decision to retain a higher percentage was based on available capital and occurred after raising additional unsecured debt. The company plans to retain more interest in future securitizations, depending on capital deployment needs. Q: Any insights on the potential GSE privatization and its impact on credit risk transfer? A: David Spector stated that there is little movement in DC regarding GSE reformulation. However, PennyMac's non-agency securitization program allows them to create comparable investments, maintaining mid-teen returns and leveraging their credit investment strategy. Q: What are the drivers behind the increase in run rate ROE? A: Daniel Perotti highlighted increases in net interest rate sensitive strategies due to non-agency senior MBS investments and improved correspondent production margins. Additional investments in non-agency subordinate pieces also contributed positively. Q: Is the $0.40 dividend sustainable given the current earnings run rate? A: Daniel Perotti expressed confidence in maintaining the $0.40 dividend, citing improved run rate potential and supportive taxable income levels. The company values dividend stability and expects further improvements in earnings to support this level. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
19-07-2025
- Business
- Yahoo
Buy Microsoft Stock Now, or Wait for a Pullback?
Key Points Revenue growth accelerated in the company's most recently reported quarter. Microsoft is scheduled to report its fiscal fourth-quarter earnings later this month. The company pays a dividend, which should grow on an annual basis for the foreseeable future. 10 stocks we like better than Microsoft › Ahead of Microsoft's (NASDAQ: MSFT) quarterly earnings release on July 30, many investors are likely looking closely at their shares of the software giant. After all, the stock has seen an incredible run recently. Shares are up 42% from April 21 to July 17. Not only has the stock benefited from a sharp V-shaped recovery following a tariff-related sell-off that impacted much of the market, but it has also risen to a new all-time high. The problem? The valuation is now questionably rich. To the company's credit, it's seeing impressive business momentum. Revenue and profit are both rising at double-digit rates, and the company appears well positioned to benefit from tailwinds in artificial intelligence (AI) -- both in terms of increased demand for its AI-related services and cost efficiencies as AI boosts employee productivity. But the big question is whether the stock has risen too far, too fast. Clearly, the company has great momentum. But has a sky-high valuation already priced in the bull case for this stock? Accelerating growth Microsoft's fiscal third-quarter results from late April (its most recently reported quarter) capture how well the company is doing -- and why investors are bidding shares higher. Revenue rose 13% year over year -- an acceleration from 12% growth in fiscal Q2. Notably, when adjusting for foreign exchange, fiscal third-quarter revenue actually rose 15% year over year. Additionally, operating income grew even faster, rising 16%, or 19% in constant currency. "Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth," said Microsoft CEO Satya Nadella in the company's fiscal third-quarter earnings release. "From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers." Driving the quarter's results was a 21% year-over-year increase in revenue from the company's intelligent cloud segment. Included in this segment is the company's cloud-computing business, Azure. The cloud-powering infrastructure systems and software segment contributed 33% year-over-year revenue growth. But slower-growing segments still did well. For instance, Microsoft's revenue from its productivity and business processes segment rose 10% year over year, helped by growing Microsoft 365 subscriptions. High expectations Such broad-based strength, driven by lucrative software and services, makes a compelling case for the company's long-term growth potential. But with shares now trading at a price-to-earnings multiple of nearly 40, is the valuation simply too high? Given the stock's recent run-up, investors shouldn't get too excited. On the one hand, Microsoft's balanced business clearly deserves a high valuation multiple. After all, the company has a healthy balance sheet, a strong suite of products, and is seeing double-digit top- and bottom-line growth. However, a price-to-earnings ratio of 40 seems to price in plenty of optimism. Altogether, I'd lean more toward calling the stock a hold instead of a buy at the stock's current price. One reason I'm comfortable with this view, despite the stock's high valuation, is that the company takes some risk off the table every quarter by paying investors a quarterly dividend. Microsoft is a great dividend stock. Though its dividend yield is just 0.7%, there's plenty of room for this dividend payment to grow over time. This is evident by the fact that the company is paying out less than 25% of its earnings in dividends. Additionally, if history is any indication of the future, more dividend increases are likely. The company has increased its dividend every year for 23 years straight. Also helping the bull case is Microsoft's share repurchase program. With plenty of excess cash, the company is aggressively buying back its stock. Combining its dividends and repurchases, the company spent $9.7 billion returning capital to shareholders in fiscal Q3, up 15% year over year. Overall, Microsoft shares may not be a great buy at their current price. On the other hand, the company is giving shareholders plenty of reasons to hold onto their shares. But given the stock's premium valuation, shareholders should expect a bumpy ride. Should you invest $1,000 in Microsoft right now? Before you buy stock in Microsoft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Microsoft wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Buy Microsoft Stock Now, or Wait for a Pullback? was originally published by The Motley Fool
