Adjusted EBITDAC increased 24.5% to $308 million, with margin expansion of 50 basis points to 36.1%.
GAAP interest expense is expected to be approximately $223 million in 2025, with $57 million in Q3.
M&A remains a top priority with net leverage at 3.5x, and the company is willing to temporarily exceed comfort levels for strategic acquisitions.
Ryan Specialty Holdings reported total revenue growth of 23% in Q2 2025 to $855 million, driven by 7.1% organic growth and 13 percentage points from M&A.
The adjusted effective tax rate was 26%, expected to remain similar for the rest of 2025.
Strategic Focus on Balance Sheet Remixing and Loan Composition Shift
The company is actively shifting its asset base from lower-yielding residential mortgages to higher-yielding commercial and C&I loans, with over $700 million in C&I growth in H1 2025.
This mix shift is driving record net interest income of $300 million in Q2, the strongest in company history.
The ongoing asset remixing is expected to support profitability and margin expansion, with net interest margin climbing above 3%.
Adjusted EBITDA increased by 128% or $66 million in the second quarter and more than doubled to $356 million in the first half.
Adjusted EBITDA margin was 17% in the quarter and 23% year-to-date, an increase of nearly 500 basis points versus last year.
Benefits and Insurance segment revenue was $102 million, up approximately 5%, with adjusted EBITDA up 21% and margin improving by 260 basis points.
Financial Services segment revenue was $570 million, up approximately 84%, with adjusted EBITDA more than doubling to $111 million and margin improving by 250 basis points.
Second quarter adjusted diluted earnings per share increased by 64% to $0.95 per share, and first half adjusted diluted earnings per share increased by 47% to $3.26 per share.
Second quarter interest expense was higher by $22 million compared to last year, driven by higher outstanding debt associated with the acquisition.
Second quarter revenue was $684 million, and first half revenue was $1.5 billion, a 63% and 66% increase, respectively, largely driven by the Marcum acquisition.
Second quarter tax expense was $7 million higher than last year, with an effective tax rate lower by approximately 240 basis points compared to last year.
Allowance for credit losses to total portfolio loans was 1.19%, decreasing $9.8 million from prior quarter due to payoffs and portfolio mix changes.
Deposits increased 58% year-over-year to $21.2 billion, including $6.9 billion from Premier and $849 million organic growth.
Efficiency ratio improved 10 percentage points year-over-year to 55.5%, aided by planned acquisition cost savings.
Fee income grew 40% year-over-year to $44 million, driven by acquisition and organic growth.
For the quarter ending June 30, 2025, WesBanco reported net income excluding merger and restructuring expenses of $87.3 million and diluted earnings per share of $0.91, an increase of 86% year-over-year.
Net interest margin improved to 3.59%, driven by the Premier acquisition and loan growth.
Noninterest expense excluding restructuring and merger costs was $145.5 million, up 47.5% year-over-year due to acquisition-related expenses and higher FDIC insurance.
Returns on average assets and tangible equity improved to 1.3% and 17%, respectively.
Total assets increased 52% year-over-year to $27.6 billion, including $18.8 billion in total portfolio loans.
Total assets increased 52% year-over-year to $27.6 billion, including $18.8 billion in total portfolio loans and $4.4 billion in securities.
Total portfolio loans increased 53.6%, with $5.9 billion from Premier and $670 million organic growth.
Catastrophe losses were $99 million, slightly higher than the prior year's $90 million, but the impact on the combined ratio remained flat.
Financial leverage remained low at 23.4%, and after-tax unrealized investment losses improved by $120 million to $249 million.
Net income per diluted share increased 8.7% year-over-year to $1.00 or $401 million, with an annualized return on beginning of year equity of 19.1%.
Net premiums earned reached a quarterly record of $3.1 billion, and net premiums written hit a record $3.4 billion, with growth across all lines and segments.
Operating earnings were $420 million or $1.05 per share, yielding a 20% annualized return on beginning of year equity, excluding after-tax foreign currency gains and losses.
Ordinary and special dividends totaled $224 million, with book value per share growth before dividends at 6.8% for the quarter and 14.3% year-to-date.
Record net investment income of $379 million was driven by growth in invested assets and higher new money rates on fixed maturity securities, with a book yield increase to 4.7%.
Stockholders' equity increased by over $380 million or 4.3% to a record $9.3 billion.
The accident year combined ratio before catastrophe losses was 88.4%, with a loss ratio excluding cats of 59.9% and an expense ratio of 28.5%.
The effective tax rate was 23.2%, above the U.S. statutory rate due to foreign and state taxes.
Dafinchi