- 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.
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- B2B segment revenue grew nearly 40%, driven by a significant BaaS partner and growth in the BaaS portfolio.
- Consumer Services segment revenue declined but active account declines moderated, with retail channel showing flat active accounts and slight increases in key metrics.
- Corporate segment revenues increased due to higher interest income from balance sheet optimization and bond repositioning.
- Green Dot reported a strong Q2 2025 with adjusted revenue up 24% year-over-year and adjusted EBITDA up 34%, both exceeding expectations.
- Money Movement segment saw tax business outperform expectations with profits up over 10%, while money processing revenue declined modestly due to lower transaction volumes but improved revenue per transaction.
- Non-GAAP EPS reached $0.40 per share, a 60% increase year-over-year.
- Overall segment margins were flat year-over-year, with margin improvements in direct channel offsetting retail declines.
- Rapid Employer Services revenue declined due to challenges in the staffing industry, but margin expanded by 45 basis points due to improved profitability.
- 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.
- Adjusted EBITDA was $11.2 million, positive but down year-over-year, impacted by lower gross margin and strategic investments including severance costs.
- Agent count was 82,704, down 5% year-over-year but up 1% sequentially quarter-over-quarter, with increased transactions per agent indicating higher productivity.
- eXp World Holdings generated $1.3 billion in revenue in Q2 2025, with real estate sales volume up 1% year-over-year despite a 2% decrease in sales transactions.
- International segment revenue grew 59% year-over-year, driven by increased productive agents and new market launches, though adjusted EBITDA loss increased due to expansion and events.
- Non-GAAP gross margin was 12%, while GAAP gross margin was 7.1%, down 40 basis points from Q2 2024 due to more agents reaching their cap.
- North America Realty segment remains the largest revenue and profit generator with $1.3 billion revenue and $19.8 million adjusted EBITDA in Q2.
- Other affiliated services contributed modest revenue but had an adjusted EBITDA loss of $2.3 million.
- The company ended Q2 with $94.6 million in cash, after paying $17 million of a $34 million antitrust litigation settlement.
- CIB group achieved record origination growth with nearly two dozen new relationships and significant upsizes.
- Combined special mention, substandard, and foreclosed assets declined modestly, indicating stable asset quality.
- Fee income from capital markets activities increased due to bond and high-yield issuances impacting loan outstanding growth.
- Largest foreclosed asset, Lincoln Yards land in Chicago, sold at book value, representing a positive outcome.
- Margins expected to compress temporarily due to Fed cuts with a lag effect from deposit repricing.
- Net new originations and upsizes in CIB totaled about $1.6 billion, equating to $850 million in outstandings.
- Record level of RESG paydowns in the quarter, reflecting strong liquidity and refinance activity in CRE space.
- Three loans migrated to higher risk categories including one from substandard to substandard nonaccrual with a significant charge-off recognized.
Dafinchi