- Credit quality remained strong with nonperforming assets at 27 basis points of total assets and net charge-offs down about 25% quarter-over-quarter.
- Customers Bancorp reported a strong Q2 2025 with core EPS of $1.80, core ROCE of 13.3%, and ROAA of 1.1%, exceeding consensus estimates.
- Deposit growth was steady at $19 billion, with $300 million in new high-quality deposits from commercial banking teams and a $350 million reduction in brokered deposits.
- Net interest margin expanded by 14 basis points quarter-over-quarter to 3.27%, with net interest income increasing about 6% to $176.7 million.
- Noninterest expenses were $106.6 million, with a core efficiency ratio improving to 51.6%, well below industry average despite reinvestments.
- Tangible book value per share reached $56.24, reflecting a 15% compound annual growth rate since Q4 2019, outperforming peers.
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- The CRE portfolio remains well-diversified with low nonaccruals and delinquencies, at 0.54% of loans.
- Construction loans are showing signs of lease-up improvements, with buildings filling up despite longer lease-up times.
- The bank expects CRE classified balances to decline further through payoffs and upgrades.
- Management highlighted that recent supply-demand dynamics have affected lease-up times but are gradually improving.
- The bank's disciplined concentration limits and focus on quality are key to maintaining portfolio stability.
- Adjusted EPS of $0.51, up $0.06 from the prior quarter, with adjusted return on tangible common equity increasing by 135 basis points to 15%.
- Adjusted expenses increased by $45 million, primarily due to higher personnel costs, project expenses, technology, risk, and a $20 million contribution to the First Horizon Foundation.
- Common Equity Tier 1 (CET1) capital ratio remained flat at 11%, with a near-term target of 10.75% following annual stress testing.
- Deposit balances decreased by $52 million, driven by a $652 million decline in brokered CDs, offset by growth in index and promotional deposits and a $131 million increase in noninterest-bearing deposits.
- Fee income increased by $26 million excluding deferred compensation, driven by higher fixed income fees and mortgage servicing rights sales.
- Loan balances were slightly down, with mortgage company loans decreasing seasonally by $132 million, while C&I loans grew by $174 million quarter-over-quarter.
- Net charge-offs decreased by $7 million to $26 million, with a net charge-off ratio of 17 basis points and a loan loss provision credit of $5 million.
- Net interest income grew by $33 million with a 15 basis point expansion in net interest margin to 3.55%, aided by loan balance growth and Main Street lending accretion.
- Blue Owl Capital reported fee-related earnings (FRE) of $0.23 per share and distributable earnings (DE) of $0.21 per share for Q2 2025.
- Direct lending portfolio gross returns were 3% in Q2 and 13.5% over the last 12 months; alternative credit gross returns were 2% in Q2 and 15.7% over last 12 months.
- Equity fundraising hit a record with over $12 billion raised in Q2 and over $36 billion over the last 12 months, nearly 90% increase from prior year.
- FRE margin guidance for the year is 57% to 58%, with Q2 printing at 57%.
- Management fees increased by 32% over the last 12 months, with 87% from permanent capital vehicles.
- Net lease gross returns were 4.1% for Q2; real estate credit investments yielded 8.1% yield to maturity and 11.1% debt yield.
- The company declared a dividend of $0.225 per share for Q2 payable on August 28 to holders of record as of August 14.
- The company maintained strong credit quality with average annual realized losses at 13 basis points in direct lending.
- The listing of the technology-focused BDC, OTF, contributed approximately $6 million in incremental management fees in Q2.
- Year-over-year on a last 12 months basis, FRE revenues grew by 29%, FRE by 23%, and DE by 20%.
- Adjusted expenses were $491 million for the quarter, or $395 million excluding license fees.
- Adjusted net income was $1.1 billion and adjusted diluted EPS was $2.96, both up 16% from Q2 2024.
- Adjusted operating income was a record $1.2 billion, up 14% year-over-year, with an operating margin of 71%.
- Average rate per contract was $0.69, resulting in the highest quarterly clearing and transaction fees of $1.4 billion, up 11% year-over-year.
- Capital expenditures were approximately $19 million, and cash at quarter-end was $2.2 billion.
- CME Group generated revenue of $1.7 billion in Q2 2025, up 10% year-over-year.
- Dividends paid were $455 million in Q2 and approximately $3 billion in the first half of 2025.
- Market Data revenue reached a record $198 million, up 13%.
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