- Adjusted return on equity was 13.4%, with insurance in force increasing 1% year-over-year to $270 billion.
- Enact reported adjusted operating income of $174 million and adjusted earnings per diluted share of $1.15 for Q2 2025.
- Investment income was $66 million, up 5% sequentially and 10% year-over-year, with new money investment yield exceeding 5%.
- Loss ratio for the quarter was 10%, with losses of $25 million and a reserve release of $48 million driven by favorable cure performance.
- New insurance written was $13 billion, up 35% sequentially but down 3% year-over-year.
- Operating expenses were $53 million, flat year-over-year excluding restructuring charges, with an expense ratio of 22%.
- Persistency was 82%, down 2 points sequentially and 1 point year-over-year.
- Total net premiums earned were $245 million, flat sequentially and up modestly year-over-year.
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- Capital ratios increased: CET1 at 10.2%, TCE at 8.06%, both up year-over-year and sequentially.
- Commercial & Industrial (C&I) loans grew over $700 million year-to-date, driving loan growth.
- Efficiency ratio improved to below 56%, the lowest since early 2023.
- Net interest income (NII) reached a record $300 million, up 17% year-over-year.
- Net interest margin (NIM) expanded to 3.04%, up 29 basis points year-over-year and 7 basis points sequentially.
- Nonaccrual loans decreased 16%, net charge-offs were 17 basis points, and provision expense was $18 million.
- Noninterest expense was $209 million, slightly down from prior quarter, driving positive operating leverage.
- Noninterest income was $67 million, up 3% year-over-year and 14% sequentially.
- Reported earnings of $0.65 per share in Q2 2025.
- Return on tangible common equity (ROATCE) improved to 12.96%, up 62 basis points from Q1.
- Total loans grew 1% quarter-over-quarter and 3% year-over-year, or nearly 6% adjusted for loan sale.
- AGNC reported a comprehensive loss of $0.13 per common share for Q2 2025.
- Asset portfolio grew to $82 billion, up $3.5 billion from prior quarter, with a focus on higher coupon specified pools.
- Average projected life CPR declined to 7.8% from 8.3%, while actual CPRs averaged 8.7%, up from 7% in prior quarter.
- Dividends declared were $0.36 per common share, with a $0.44 decline in tangible net book value per share.
- Economic return on tangible common equity was negative 1%.
- Liquidity position improved to $6.4 billion in cash and unencumbered Agency MBS, representing 65% of tangible equity.
- Net interest rate spread decreased 11 basis points to 201 basis points largely due to higher swap costs.
- Net spread and dollar roll income declined to $0.38 per common share due to slower capital deployment and higher swap costs.
- Quarter-end leverage increased slightly to 7.6x tangible equity from 7.5x in Q1.
- Capital ratios increased: CET1 ratio up 7 basis points to 11.7%, total risk-based capital ratio up 5 basis points to 14.15%.
- Credit quality improved with nonperforming assets declining 5.3% and net charge-offs at $4.1 million or 12 basis points of average loans.
- Deposit base grew $35 million during the quarter with personal and commercial deposits totaling $13 billion, up 0.8% from prior quarter.
- Loans held for investment increased $223 million or 1.7% linked quarter and $374.8 million or 2.9% year-to-date.
- Net income was $55.8 million in Q2, with fully diluted EPS of $0.92, up 4.5% from prior quarter.
- Net interest income expanded 4.3% to $161.4 million, with net interest margin increasing 6 basis points to 3.81%.
- Noninterest expense increased 0.9% linked quarter, with lower salaries and equipment expense offset by higher professional fees.
- Noninterest income was $39.9 million, unchanged linked quarter excluding gains/losses on bank facility sales.
- Provision for credit losses was $4.7 million; allowance for credit losses was 1.25% of loans held for investment.
- Quarterly cash dividend declared at $0.24 per share payable September 15.
- Repurchased $11 million of common stock in the quarter, $26 million year-to-date, with $74 million remaining in repurchase authority.
- Return on average assets was 1.21% and return on average tangible equity was 13.13%.
- Tangible book value per share was $28.74, up 3.5% linked quarter and 13.9% year-over-year.
Dafinchi