- Adjusted EBITDA margins excluding acquisition drag would have been 53%, with expectations of higher operating leverage as the year progresses.
- Adjusted free cash flow was $118 million in Q2, representing 57% free cash flow conversion, on track for 50%+ conversion for the full year.
- Blended spreads improved to 62.6 basis points compared to 61.5 basis points in Q2 2024, exceeding full-year guidance.
- GAAP net income was $41 million with diluted EPS of $0.32, and non-GAAP adjusted net income was $109 million or $1.10 per share on a fully diluted basis.
- Gross revenue less network fees grew 29% year-over-year to $413 million, and adjusted EBITDA increased 26% to $205 million with adjusted EBITDA margins at 49.6%.
- Shift4 reported 25% year-over-year growth in payment volumes to $50 billion, marking the first quarter with over $50 billion in payment volumes.
- Subscription and other revenues grew 37% year-over-year to $97.7 million, setting a Q2 record.
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- Adjusted noninterest expense rose 1% sequentially and 3% year-over-year, with disciplined expense control and higher employment costs.
- Adjusted noninterest revenue increased 12% sequentially and 3% year-over-year, driven by capital markets fees rebound and wealth management income growth.
- Adjusted pre-provision net revenue rose 5% sequentially and 7% year-over-year.
- Capital ratios strengthened, with CET1 ratio at 10.91%, the highest in company history, supported by earnings and share repurchases.
- Core deposits declined 2% sequentially, driven by public funds and broker deposits, but deposit costs improved with a 4 basis point decline in average cost of deposits to 2.22%.
- Credit quality improved with net charge-offs at $18 million (17 basis points), better than guidance, and nonperforming loans decreased to 0.59% of total loans.
- Loan balances increased by $888 million or 2% sequentially, with strong growth in high-growth verticals and specialty lending.
- Net interest margin expanded modestly to 3.37%, with net interest income growing 6% year-over-year.
- Synovus reported GAAP and adjusted earnings per share of $1.48, a 14% increase from the first quarter and 28% year-over-year.
- 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.
- Capital position remains solid with CET1 at 11.3%, repurchased 522,000 shares at $16.9 average price, and tangible book value per share grew 9.5% annualized linked quarter.
- Deposits declined $191 million or 2.9%, influenced by seasonal trends and shifts in municipal and noninterest-bearing balances.
- Net interest income was $254.9 million, up $3.7 million linked quarter, with net interest margin increasing 4 basis points to 3.47%.
- Noninterest expense was $187.6 million, slightly up linked quarter but below the expected $190-$195 million range for the remaining quarters.
- Noninterest income was $69.1 million, with broad-based linked quarter growth and fee income up 7% excluding equity method adjustments.
- Operating earnings for Q2 2025 were $106 million or $0.55 per share, a record for the company and a $0.03 linked quarter increase.
- Provision expense declined $5.3 million linked quarter to $8.6 million, with stable credit metrics and cautious outlook.
- Total loans grew $150 million or 2.5%, primarily in residential mortgage, home equity, and certain commercial categories.
- Total revenue increased linked quarter driven by growth in net interest income and fee income.
- Adjusted pre-provision net revenue (PPNR) increased 11%, producing 330 basis points of positive operating leverage.
- Adjusted return on assets (ROA) was 1.25%, return on tangible common equity (ROTCE) was 17.7%, and efficiency ratio was 54.1%.
- Average loans increased 6% year over year, marking the fourth consecutive quarter of accelerating loan growth.
- Commercial nonperforming assets declined 14% sequentially and 30% since Q1, with criticized assets down 4%.
- Net charge-off ratio was 109 basis points, including $178 million from Tricolor; excluding Tricolor, commercial charge-offs were 51 basis points, consumer charge-offs 52 basis points, the lowest in two years.
- Net interest income (NII) improved 7% year over year and 2% sequentially, with net interest margin expanding for the seventh consecutive quarter.
- Reported earnings per share of $0.91, or $0.93 excluding certain items, despite a $200 million provision related to Tricolor fraud.
- Tangible book value per share grew 7% year over year and 3% sequentially, despite repurchasing $300 million of stock.
- 15 acquisitions completed in the quarter with estimated annual revenues of $22 million; 29 acquisitions year-to-date with $60 million annual revenues.
- Adjusted earnings per share grew over 10% to $1.03.
- Adjusted EBITDAC margin improved by 100 basis points to 36.7%.
- Brown & Brown delivered $1.3 billion in revenue for Q2, growing 9.1% total and 3.6% organically versus prior year.
- Cash flow from operations was $537 million, up $164 million over first half of 2024.
- Completed 15 acquisitions in the quarter with estimated annual revenues of $22 million; 29 acquisitions year-to-date with $60 million in annual revenues.
- Dividends paid per share increased 15.4% compared to prior year quarter.
- Generated $537 million cash flow from operations, up $164 million over first half of 2024.
- Programs segment grew 6.1% total revenues with 4.6% organic growth; EBITDAC margin expanded 320 basis points to 52.8%.
- Retail segment revenue grew 7.9% total with 3% organic growth; EBITDAC margin decreased 50 basis points to 27.5% due to seasonality.
- Weighted average shares increased by approximately 10 million due to equity issuance.
- Wholesale Brokerage segment revenues increased 14.5% total and 3.9% organically; EBITDAC margin increased 80 basis points to 34.1%.
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