Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Columbia Financial (NASDAQ:CLBK) and its peers.
Thrifts & Mortgage Finance institutions operate by accepting deposits and extending loans primarily for residential mortgages, earning revenue through interest rate spreads (difference between lending rates and borrowing costs) and origination fees. The industry benefits from demographic tailwinds as millennials enter prime homebuying age, technological advancements streamlining the loan approval process, and potential interest rate stabilization improving affordability. However, significant headwinds include net interest margin compression during rate volatility, increased competition from fintech disruptors offering digital-first experiences, mounting regulatory compliance costs, and potential housing market corrections that could impact loan portfolios and default rates.
The 20 thrifts & mortgage finance stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 26% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 6.4% on average since the latest earnings results.
Columbia Financial (NASDAQ:CLBK)
Founded during the Roaring Twenties in 1926 and headquartered in Fair Lawn, New Jersey, Columbia Financial (NASDAQ:CLBK) operates federally chartered savings banks in New Jersey that offer traditional banking services including loans, deposits, and insurance products.
Columbia Financial reported revenues of $61.41 million, up 20.3% year on year. This print exceeded analysts’ expectations by 15.4%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and tangible book value per share estimates.
Mr. Thomas J. Kemly, President and Chief Executive Officer commented: “We are pleased with our results for the second quarter of 2025, which reflect a substantial increase in earnings and the continued expansion of our net interest margin resulting from our previously announced strategies. During the quarter, we also experienced solid loan growth, complemented by the purchase of approximately $130.9 million in commercial equipment finance loans. Assets and deposits continued to increase throughout the 2025 period, and we reduced our overall operating costs."
Interestingly, the stock is up 7.7% since reporting and currently trades at $15.03.
Is now the time to buy Columbia Financial? Access our full analysis of the earnings results here, it’s free.
Best Q2: Ellington Financial (NYSE:EFC)
Operating under the guidance of Ellington Management Group, a respected name in structured credit markets, Ellington Financial (NYSE:EFC) acquires and manages a diverse portfolio of mortgage-related, consumer-related, and other financial assets to generate returns for investors.
Ellington Financial reported revenues of $92.54 million, up 1.5% year on year, outperforming analysts’ expectations by 11.5%. The business had a stunning quarter with a solid beat of analysts’ tangible book value per share estimates and a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 8.4% since reporting. It currently trades at $13.73.
Is now the time to buy Ellington Financial? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Franklin BSP Realty Trust (NYSE:FBRT)
Operating as a specialized real estate investment trust (REIT) with roots dating back to 2012, Franklin BSP Realty Trust (NYSE:FBRT) originates and manages a diversified portfolio of commercial real estate debt investments secured by properties in the United States and abroad.
Franklin BSP Realty Trust reported revenues of $50.78 million, up 171% year on year, falling short of analysts’ expectations by 8.9%. It was a disappointing quarter as it posted a significant miss of analysts’ net interest income and EPS estimates.
Interestingly, the stock is up 15.7% since the results and currently trades at $11.67.
Read our full analysis of Franklin BSP Realty Trust’s results here.
TFS Financial (NASDAQ:TFSL)
Tracing its roots back to 1938 during the Great Depression era when savings and loans were vital to homeownership, TFS Financial (NASDAQ:TFSL) is a savings and loan holding company that provides mortgage lending, deposit services, and other retail banking products primarily in Ohio and Florida.
TFS Financial reported revenues of $80.54 million, up 6% year on year. This result came in 0.8% below analysts' expectations. It was a slower quarter as it also logged EPS in line with analysts’ estimates.
The stock is up 11.4% since reporting and currently trades at $14.06.
Read our full, actionable report on TFS Financial here, it’s free.
AGNC Investment (NASDAQ:AGNC)
Born during the 2008 financial crisis when mortgage markets were in turmoil, AGNC Investment (NASDAQ:AGNC) is a real estate investment trust that primarily invests in mortgage-backed securities guaranteed by U.S. government agencies or enterprises.
AGNC Investment reported revenues of -$112 million, down 367% year on year. This print missed analysts’ expectations by 141%. It was a disappointing quarter as it also produced a significant miss of analysts’ net interest income estimates and a significant miss of analysts’ EPS estimates.
AGNC Investment had the slowest revenue growth among its peers. The stock is up 5.6% since reporting and currently trades at $9.75.
Read our full, actionable report on AGNC Investment here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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