- Asset quality remained stable with criticized loans down 8% quarter-over-quarter and allowance coverage at 1.04%.
- Charge-offs increased to $12 million annualized (33 bps) from $8 million (25 bps) in Q1.
- Earnings per diluted share excluding notable items remained flat at $0.19 due to 7 million shares issued in the Territorial acquisition.
- Net income excluding notable items was $24.5 million in Q2 2025, up 7% from $22.9 million in Q1 2025.
- Net interest income increased 17% quarter-over-quarter to $118 million, driven by Territorial acquisition, organic loan growth, and margin expansion.
- Net interest margin expanded 15 basis points to 2.69%.
- Noninterest expense excluding notable items increased to $92 million from $81 million due to Territorial operations addition.
- Noninterest income excluding notable items rose 44% year-over-year to $15.9 million.
- Pretax pre-provision net revenue excluding notable items grew 17% quarter-over-quarter to $41.2 million.
- Provision for credit losses excluding notable items was $10.5 million, up from $5 million in Q1.
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- Credit Sensitive Strategies contributed $22 million to pretax income, including $17 million from organically created CRT investments.
- Interest Rate Sensitive Strategies had a pretax loss of $5 million, with fair value increases on MSR investments offset by declines in MBS and interest rate hedges.
- Net income excluding market-driven value changes was $36 million, down from $41 million in the prior quarter due to higher realized and projected prepayment activity.
- PMT declared a second quarter common dividend of $0.40 per share; book value per share at June 30 was $15, down modestly from March 31.
- PMT reported a net loss to common shareholders of $3 million or loss per share of $0.04 in Q2 2025, driven by fair value declines and a $14 million nonrecurring tax adjustment.
- Total correspondent loan acquisition volume was $30 billion, up 30% from the prior quarter, with $3 billion acquired for PMT's account, up 11%.
- Balance sheet remains strong with an adjusted tangible equity ratio of 9.8%, up from 8.2% a year ago.
- Consumer Lending segment NIM was 232 basis points, down from 276 basis points in Q1, impacted by loans entering 91+ days delinquency and related accrued interest reserve adjustments.
- Delinquency rates increased: FFELP >90-day delinquency at 10.1%, consumer lending 91+ day delinquency rose to 3%, partly due to disaster forbearance roll-offs.
- Loan originations doubled year-over-year, with $443 million in refinance loans this quarter and over $1 billion in total originations year-to-date.
- Navient reported core earnings per share of $0.20 in Q2 2025, or $0.21 on a core basis after adjusting for regulatory and restructuring expenses.
- Net interest margin (NIM) for the Federal Education Loan segment was 70 basis points, exceeding guidance, with full year NIM expected between 55 and 65 basis points.
- Operating expenses declined by $82 million year-over-year to $100 million, driven by business sales and expense reduction initiatives.
- Provision expenses were elevated due to macroeconomic outlook deterioration, higher delinquency trends, and increased loan originations.
- Returned $40 million to shareholders via share repurchases and dividends; repurchased 1.9 million shares for $24 million.
- Adjusted operating net income was $53.5 million or $1.25 diluted EPS, reflecting a 1.09% return on assets and 6.99% return on average common equity.
- Core deposit growth was strong with non-time deposits up 3.6% year-over-year and 1.6% from the prior quarter.
- Expenses increased 1.8% excluding merger costs, driven by salary increases, equity awards, and higher check and fraud losses.
- Net interest margin (NIM) was 3.37%, higher than previous guidance due to asset repricing and reduced deposit costs.
- Nonperforming loans decreased significantly from $89.5 million to $56.2 million, or 39 basis points of total loans.
- Second quarter GAAP net income was $51.1 million with diluted EPS of $1.20, yielding a 1.04% return on assets and 6.68% return on average common equity.
- Tangible book value per share increased by $0.99 during the quarter, including a $0.28 benefit from other comprehensive income.
- Total loans increased modestly with C&I loans up 3.4% and CRE loans down 1.7%.
- Book value per share grew by an annualized 14% from last quarter and over 13% year-over-year, ending at $32.37 per share.
- Charge-offs totaled just over $9 million, resulting in an annualized net charge-off ratio of 27 basis points.
- Efficiency ratio improved to 35.22% from 36.90% a year ago; adjusted efficiency ratio was 33.31%.
- Net income grew 18% year-over-year, increasing by more than $9 million compared to Q3 2024.
- Net interest income was $133.4 million reported, $137.8 million normalized, with a net interest margin of 3.09% reported and 3.19% normalized.
- Normalized net income was $73.8 million or $1.35 EPS after adjusting for unique transactions.
- Reported net income of $65.6 million and diluted EPS of $1.20 for Q3 2025.
- Return on average assets was 1.47% and return on common equity was 14.9%.
- FAD was $0.33 per share, a $0.04 sequential increase, representing a 96% payout ratio, a significant improvement from the first quarter.
- Net debt to adjusted EBITDA sits at 6x, with expectations to decrease into the mid-5x area by year-end.
- Normalized FFO was $0.41 per share, a $0.02 sequential increase, and up nearly 7% year-over-year, driven by strong occupancy gains, disciplined cost management, and a decrease in share count.
- Same-store occupancy was 90%, a 40 basis point sequential increase, with same-store NOI growth of 5.1%, a 280 basis point sequential increase, the highest in 9 years.
- The company completed a successful renewal of its revolver, extended the tenor of term loans, and raised 2025 normalized FFO per share guidance to $1.57 to $1.61.
- Year-to-date asset sales increased to $211 million at a blended 6.2% cap rate, with over $700 million of additional assets under contract or LOI.
- 30-plus delinquency was 5.07%, down 29 basis points year-over-year.
- Capital generation was $222 million, up 63% year-over-year.
- C&I adjusted earnings were $1.45 per share, up 42%.
- C&I net charge-offs were 7.6%, down 60 basis points from last quarter and down 88 basis points year-over-year.
- Consumer loan net charge-offs were 7.2%, down 64 basis points from last quarter and down 110 basis points year-over-year.
- Consumer loan yield was 22.6%, up 19 basis points from the first quarter and up 67 basis points year-over-year.
- GAAP net income was $167 million or $1.40 per diluted share, up 137% from $0.59 per diluted share in Q2 2024.
- Interest income grew 10% year-over-year driven by receivables growth and yield improvement.
- Managed receivables ended the quarter at $25.2 billion, up 7% from a year ago.
- Net leverage at the end of Q2 was 5.5x, flat to last quarter.
- Operating expenses were $415 million, up 11% compared to a year ago.
- Originations grew 9%, driven by expanded use of granular data and product innovations.
- Total revenue grew 10% and receivables grew 7% year-over-year, crossing the $25 billion mark for the first time.
- 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%.
Dafinchi