Adjusted EBITDA for the quarter was $220 million, a 1% increase year-over-year, including $5 million in net performance fee earnings.
Alternative assets under management increased by 20% in the first half of 2025, with $55 billion added, reaching $331 billion in total alternative AUM.
Fee-related earnings grew 4% year-over-year, driven by higher average AUM and organic growth in alternative strategies, partially offset by outflows in fundamental equity strategies.
In Q2 2025, AMG reported a 15% year-over-year growth in economic earnings per share, reaching $5.39.
Net client cash flows exceeded $8 billion in Q2, with record inflows into alternative strategies.
Share repurchases totaled approximately $100 million in Q2 and $273 million year-to-date, contributing to earnings per share growth.
Agency business revenue was $717 million, up 16%, reflecting first quarter economic activity due to reporting lag.
Closed orders increased 2%, with average revenue per order up 30% due to broad-based strength across asset classes and transaction sizes.
Commercial revenue increased 33%, setting an all-time record in the National Commercial Services division for fee per file in a quarter.
Debt-to-capital ratio was 32.1%, or 23.1% excluding secured financings payable.
Effective tax rate was 24.6%, slightly above the normalized rate of 24%.
First American reported second quarter adjusted earnings per share of $1.53, including $0.12 per share related to executive separation costs.
GAAP earnings were $1.41 per diluted share; adjusted earnings excluded net investment losses and purchase-related intangible amortization.
Home Warranty pretax income rose 35%, driven by a lower loss rate and revenue growth through the direct-to-consumer channel.
Home Warranty revenue was $110 million, up 3%, with a loss ratio improvement from 46% to 41%.
Information and other revenues rose 10%, primarily from Canadian operations with higher refinance activity.
Investment income grew 17%, driven by escrow deposits and higher interest income from the investment portfolio.
Pretax margin in the title segment was 12.6% (13.2% adjusted); Home Warranty pretax margin was 20.2% (20.7% adjusted).
Provision for policy losses was $39 million or 3.0% of title premiums and escrow fees, unchanged from prior year.
Residential purchase revenue declined 3% due to lower demand for new homes, while refinance revenue increased 54% but remains only 5% of direct revenue.
Share repurchases totaled 1 million shares for $61 million in Q2, with an additional 577,000 shares repurchased in July.
Title segment revenue was $1.7 billion, up 13%, with commercial revenue at $234 million, a 33% increase.
Adjusted operating net income was $53.5 million or $1.25 diluted EPS, reflecting a 1.09% return on assets and 6.99% return on average common equity.
Core deposit growth was strong with non-time deposits up 3.6% year-over-year and 1.6% from the prior quarter.
Expenses increased 1.8% excluding merger costs, driven by salary increases, equity awards, and higher check and fraud losses.
Net interest margin (NIM) was 3.37%, higher than previous guidance due to asset repricing and reduced deposit costs.
Nonperforming loans decreased significantly from $89.5 million to $56.2 million, or 39 basis points of total loans.
Second quarter GAAP net income was $51.1 million with diluted EPS of $1.20, yielding a 1.04% return on assets and 6.68% return on average common equity.
Tangible book value per share increased by $0.99 during the quarter, including a $0.28 benefit from other comprehensive income.
Total loans increased modestly with C&I loans up 3.4% and CRE loans down 1.7%.
Allowance for credit losses increased to $59 million, with a coverage ratio of 1.25% of total loans.
CET1 ratio modestly decreased 15 basis points to 14.13%, and Tier 1 leverage was 9.22%.
Core noninterest expense was $40.4 million, down $1.1 million from the prior quarter, with a core efficiency ratio of 49%.
Core noninterest income was $9.3 million, up from $9.1 million, mainly due to higher commercial banking fees.
Core return on average equity was 14.61%, down from 15.23% last quarter, and core return on average assets declined to 1.28%.
Loan growth was 0.8% quarter-over-quarter, driven by multifamily, commercial and industrial, and commercial real estate loans, partially offset by declines in consumer and residential loans.
Net charge-offs were 0.3% of total loans, mainly from consumer solar and small business C&I loans.
Net income was $26 million or $0.84 per diluted share and core net income was $27 million or $0.88 per diluted share.
Net interest income grew by 3.3% and was $72.9 million, with a net interest margin steady at 3.55%.
Nonperforming assets totaled $35.2 million or 0.41% of total assets, increasing slightly due to residential nonaccrual loans.
On-balance sheet deposits increased by $321 million or 4.3% to $7.7 billion, including $112.3 million of temporary pension funding deposits.
Tangible book value per share increased $0.82 or 3.5% to $24.33, growing 18% over the past 4 quarters.
The bank repurchased approximately 327,000 shares or $9.7 million in the quarter, the largest repurchase in its history.
Dafinchi