- Capital ratios remain strong with total risk-based capital ratio at 16.25% and tangible common equity ratio at 9.95%.
- Net income and EPS grew 18% quarter-over-quarter excluding a $8.5 million loss on securities sales and related tax impact.
- Net interest income increased to $25.9 million, driven by higher average earning assets and a 7 basis point increase in net interest margin.
- Net interest margin expansion was due to a 1 basis point decrease in cost of deposits and a 6 basis point increase in average yield on earning assets.
- Noninterest income was negative due to the securities portfolio loss, but other noninterest income areas were consistent with prior quarter.
- No provision for credit losses was required due to stable loan portfolio and high reserves; allowance for credit losses remained at 1.44% of total loans.
- Pretax pre-provision net income increased 15% compared to prior quarter and 85% compared to prior year-to-date.
- Repurchased $2.2 million of shares during the quarter within a limited window.
- Total deposits declined in Q2 due to normal client activity but have grown year-to-date; more than 70% of Q2 deposit outflows recouped in July.
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- Annualized return on average assets was 113 basis points, up 3 basis points from the first quarter, with an efficiency ratio just below 60%.
- Commercial loans totaled $2.94 billion, flat with March 31, 2025, and up 5% year-over-year, with commercial business loans up 2.4% during the quarter.
- Consumer indirect balances declined 2.3% from March 31 and 7% year-over-year to $833.5 million, with improved credit metrics including a net charge-off ratio of 45 basis points, down from 103 basis points in Q1.
- Net interest margin expanded by 14 basis points from the linked quarter and 62 basis points year-over-year, with net interest income growth of approximately 5% linked quarter and 19% year-over-year.
- Noninterest expense was $35.7 million in Q2, up from $33.7 million in Q1, driven by timing, higher medical claims, staffing additions, and technology-related expenses.
- Noninterest income was $10.6 million, up 2.4% from the first quarter, excluding a $13.5 million gain from the prior year insurance business sale.
- Nonperforming commercial loans declined by $7 million from March 31 to June 30, 2025, with $2.5 million in commercial net charge-offs related to two longstanding nonperforming relationships.
- Provision for credit losses was $2.6 million in Q2, down from $2.9 million in Q1, with a loan loss reserve coverage ratio of 104 basis points at June 30, 2025.
- Second quarter 2025 net income available to common shareholders increased 4% to $17.2 million, with diluted EPS up 5% compared to the linked quarter.
- Total deposits were down about 4% from March 31, 2025, due to seasonality and Banking-as-a-Service deposit outflows, with average deposits relatively flat year-over-year.
- Total loans at period end were $4.54 billion, consistent with March 31, 2025, with average loans up 1% from the first quarter and 2% year-over-year.
- First-half revenues reached $672 million, up 39% from the prior year period, driven primarily by growth in M&A and capital markets.
- Moelis & Company reported $365 million in revenues for Q2 2025, a 38% increase year-over-year and the highest second quarter revenues on record.
- Non-compensation expense ratio for Q2 was 14.4%, with an expected full-year growth of approximately 15% compared to the prior year.
- The Board declared a regular quarterly dividend of $0.65 per share, unchanged from the prior period.
- The corporate tax rate was accrued at 29.5%, consistent with Q1's underlying tax rate prior to a discrete tax benefit.
- The firm maintains a strong balance sheet with $475 million in cash and liquid investments and no debt.
- The second-quarter compensation expense ratio was accrued at 69%, consistent with the previous quarter.
- Book value per share increased over 12.6% to $25.14, driven by strong operating earnings and higher investment valuations.
- Favorable prior year loss reserve development continued, benefiting the consolidated loss ratio by 2.1 percentage points.
- Net investment income increased 2.4% due to higher bond yields despite a lower invested asset base after a $500 million special dividend.
- Net operating income was $209 million for the quarter, up from $202 million last year, with earnings per share increasing 9% to $0.83 from $0.76.
- Old Republic International produced $267.5 million of consolidated pretax operating income in Q2 2025, up from $253.8 million in Q2 2024.
- Regular cash dividends of $71 million were paid, with minimal share repurchases during the quarter.
- Specialty Insurance net premiums earned grew 14.6% with pretax operating income of $253.7 million, up from $202.5 million last year, and a combined ratio improvement to 90.7 from 92.4.
- The consolidated combined ratio was 93.6 compared to 93.5 in the prior year quarter.
- Title Insurance premiums and fees earned grew 5.2% to $698 million, but pretax operating income declined to $24.2 million from $46 million, with the combined ratio rising to 99 from 95.4.
- Adjusted non-GAAP earnings excluding significant variances were $469 million or $2.07 per share, an 18% increase in EPS over 2024.
- Life insurance sales were strong with record nonqualified sales, but pretax operating earnings declined due to higher mortality.
- Net cash flow was negative $2.6 billion in the quarter, an improvement sequentially driven by positive net cash flow from global institutional clients.
- Non-GAAP operating ROE, excluding AAR, was 14.9%, improving 170 basis points compared to the year-ago period.
- Principal Asset Management sales were $33 billion, up 19% over the prior year quarter.
- Reported non-GAAP operating earnings were $489 million, up 27% year over year, and EPS was $2.16, up 33%.
- Retirement Solutions sales were $6 billion, up 7% year over year.
- Revenue growth, strong margin and expense discipline supported results, alongside a lower effective tax rate and share repurchases.
- Second quarter reported net income excluding exited business was $432 million with minimal credit losses of $17 million.
- Specialty Benefits earnings grew 10% with margin expansion of 100 basis points.
- Total company managed AUM reached $753 billion, a 5% increase over the sequential quarter and 8% over 2024.
- Adjusted diluted EPS was $3.56, up 9% year-over-year and 60% higher than the same quarter three years ago.
- Adjusted operating margin improved to 50.9%, up 130 basis points from the prior year.
- Annualized compensation expense declined 4% year-to-date, supporting margin expansion efforts.
- MIS revenue was flat year-over-year, just shy of $1 billion for the second consecutive quarter, with adjusted operating margin expanding 100 basis points to 64.2%.
- Moody's Analytics revenue grew 11% with recurring revenue up 12%, and adjusted operating margin expanded 360 basis points to 32.1%.
- Moody's reported second quarter 2025 revenue of $1.9 billion, a 4% year-over-year increase despite a challenging issuance environment in April.
- Private credit-related revenue in MIS grew 75% year-over-year, contributing to flat revenue growth despite a 12% decline in issuance volume.
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