- Cost of interest-bearing liabilities declined to 3.96% from 4.02%, helped by CD repricing and growth in lower-cost fintech deposits.
- Diluted earnings per share were $0.02 for the quarter, impacted by elevated credit provisions and changes in noninterest income.
- Interest income increased while interest expense decreased in Q2 2025, resulting in a net interest margin above 2% on a tax-effective basis.
- Net income for Q2 was $28 million ($29.1 million fully taxable equivalent), up 11.5% and 11% respectively from Q1.
- Net interest margin improved to 1.96% (2.04% fully taxable equivalent), driven by higher loan yields and lower deposit costs.
- Noninterest income was $5.6 million, including $1.6 million gain on sale of SBA loans, down $7 million from the prior quarter due to holding loans longer.
- Yield on average interest-earning assets rose to 5.65% from 5.57%, with loan yields exceeding 7.5% on new originations.
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- Agency RMBS modestly outperformed treasury hedges but underperformed swap hedges due to tightening swap spreads.
- Agency RMBS portfolio decreased 15% quarter-over-quarter due to risk management amid trade policy uncertainty.
- Debt-to-equity ratio decreased from 7.1x at the end of March to 6.5x at the end of June.
- Hedge notional declined from $4.5 billion to $4.3 billion, with hedge ratio increasing from 85% to 94%.
- Levered gross ROEs on higher coupons are in the low 20s, representing an attractive entry point for mortgage investors.
- Repurchase agreements collateralized by Agency RMBS and CMBS declined from $5.4 billion to $4.6 billion.
- Swap spreads tightened significantly, negatively impacting book value during the quarter.
- The $5.2 billion investment portfolio consisted of $4.3 billion in agency mortgages and $900 million in Agency CMBS.
- The economic return for the quarter was negative 4.8%, consisting of a $0.34 dividend per common share and a $0.76 decline in book value per common share.
- Average MBS increased to $6.9 billion from just under $6 billion in Q1.
- Book value decreased from $7.94 per share at 3/31 to $7.21 at 6/30.
- Dividends of $0.36 were paid in both quarters.
- Excluding realized and unrealized losses, net income was $0.16 per share, same as Q1.
- Leverage ratio decreased to 7.3 from 7.8 at 3/31.
- Liquidity improved to 54% from 52%.
- Prepayment speeds increased to 10.1% from 7.8% in Q1.
- Reported a loss of $0.29 per share in Q2 compared to income of $0.18 per share in Q1.
- Total return for the quarter was negative 4.66% compared to 2.6% in Q1.
- Adjusted net debt to annualized adjusted EBITDAre was 4.6x, down from 4.7x last quarter and within the targeted leverage range of 4.5 to 5.5x.
- Adjusted net debt was $713.8 million with a weighted average debt maturity of 3.8 years and weighted average interest rate of 4.58%.
- Core FFO was $25.6 million or $0.31 per diluted share and AFFO was $27.5 million or $0.33 per diluted share, a 3.1% increase year-over-year.
- NETSTREIT reported net income of $3.3 million or $0.04 per diluted share for Q2 2025.
- Total liquidity at quarter end was $594 million, including $20 million cash, $373 million available on revolving credit, and $202 million unsettled forward equity.
- Total recurring G&A increased to $5.4 million but represented 11% of total revenues, down from 12% the prior year.
- Allowance for credit losses declined by $8.2 million to $98 million; net charge-offs were approximately $900,000.
- Hilltop reported net income of approximately $36 million or $0.57 per diluted share for Q2 2025.
- HilltopSecurities generated pretax income of $6 million on net revenues of $110 million, a 6% pretax margin.
- Net interest income increased 7% year-over-year to $110.7 million; net interest margin increased by 17 basis points versus Q1 2025.
- Net interest margin at PlainsCapital Bank increased by 19 basis points; loan yields increased by 5 basis points.
- Noninterest expenses increased by $5 million year-over-year to $261 million, driven by variable compensation and legal recovery timing.
- Noninterest income totaled $193 million, with mortgage revenues declining by $12 million year-over-year.
- PlainsCapital Bank generated $55 million pretax income on $12.7 billion average assets with a 1.35% return on average assets.
- PrimeLending reported a pretax gain of $3 million including a $9.5 million nonrecurring legal settlement.
- Return on average assets was 1% and return on average equity was 6.6%.
- Advisor and institutional businesses had flat sequential revenue growth as market appreciation in May and June offset April declines.
- AUM and AUA grew sequentially and year-over-year, with AUM net flows roughly flat year-to-date, a significant improvement from prior year outflows.
- Consolidated operating margins improved slightly year-over-year but declined sequentially due to onetime expenses and corporate overhead.
- Excluding onetime items, adjusted EPS was $1.20, an increase from both the prior year and prior quarter.
- Investment Managers revenue grew 8% year-over-year with double-digit growth in alternatives offsetting a 1% decline in traditional revenue due to mark-to-market weakness.
- Margins declined sequentially due to investments in talent and technology, with Investment Managers margins impacted by hiring ahead of expected new business.
- Private Banking revenue increased year-over-year and sequentially, supported by larger clients going live.
- SEI reported EPS of $1.78 including significant onetime items totaling a $0.60 EPS impact, partially offset by $0.02 of expenses related to foreign currency losses and legal fees tied to the Stratos investment.
- SEI returned significant capital to shareholders with buybacks exceeding $700 million on a trailing 12-month basis.
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