Adjusted leverage was modest at 1.6x as of quarter end, with total gross leverage at 1.9x, below the target range of 2x to 3x.
Declared and paid a $0.23 per share dividend; repurchased $6.6 million of common stock in Q2 with $93.4 million remaining in the repurchase program.
Ladder generated distributable earnings of $30.9 million or $0.23 per share in Q2 2025, achieving a return on equity of 7.7%.
Loan portfolio totaled $1.6 billion with a weighted average yield of approximately 9%, and 5 loans on nonaccrual totaling $162.3 million (3.6% of total assets).
Real estate portfolio of $936 million generated $15.1 million in net operating income, primarily from net lease properties with long-term leases to investment-grade tenants.
Securities portfolio was $2 billion, up 82% from year-end, with a weighted average yield of 5.9%, 99% investment-grade and 97% AAA rated.
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%.
Allowance for credit losses was $51.6 million or 1.26% of gross loans, down from $54.9 million in the prior quarter.
Earnings for the June quarter were $1.39 diluted, unchanged from the prior quarter but up 17% year-over-year.
Full year fiscal '25 earnings were $5.18 compared to $4.42 in fiscal '24, driven by stronger net interest income from 7% earning asset growth and net interest margin expansion.
Net charge-offs totaled $5.3 million for the quarter, primarily from a special purpose CRE loan and a commercial contractor credit.
Net interest margin for the quarter was 3.46%, up from 3.39% in the prior quarter, benefiting from higher loan yields and deployment of excess cash into loans.
Noninterest expense rose 2.3% due to $425,000 consulting expenses and increased data processing costs.
Noninterest income increased 9.2% quarter-over-quarter, driven by an additional card network bonus of $537,000.
Provision for credit losses increased to $2.5 million from $932,000 in the prior quarter due to net charge-offs and loan growth.
Quarterly dividend increased by $0.02 or 8.7% to $0.25 per share.
Return on average assets was 1.21% and return on average equity was 11.4% for fiscal 2025.
Tangible book value per share increased by $5.19 or just above 14% over the last 12 months to $41.87.
Adjusted book value per share reached a record high of $176.95 and adjusted operating shareholders' equity per share reached $120.11 at the end of Q2 2025.
Adjusted operating income for Q2 2025 was $50 million or $1.01 per share, down from $80 million or $1.44 per share in Q2 2024.
Loss expense increased by $27 million in Q2 2025, primarily due to additional reserves on certain U.K. regulated utility and U.S. municipal revenue exposures.
Net earned premiums and net investment income both increased in Q2 2025 compared to Q2 2024, reflecting earnings from new large transactions and higher-yielding assets.
The Insurance segment contributed $76 million and the Asset Management segment $4 million to earnings in Q2 2025, offset by a $29 million loss in the corporate division.
Capital returned to shareholders totaled $650 million year-to-date, including $150 million in dividends and $500 million in share repurchases, with plans to repurchase shares toward the upper end of the $500 million to $1 billion range for 2025.
Closed Block segment earnings declined significantly to $3.9 million from $24.4 million due to unfavorable Long-Term Care (LTC) benefits experience, with the LTC net premium ratio rising to 94.9%.
Colonial Life segment increased adjusted operating income slightly to $117.4 million from $116.9 million, with premium growth of 3.6% and a benefit ratio of 48.3%, producing an ROE of 18.6%.
Core operations premium growth was 4.6% in the quarter, driven by strong persistency and natural growth within the in-force block, keeping the company on track for its full year premium growth outlook of 3% to 6%.
Group disability benefit ratio was 62.2%, higher than the prior year due to lower recoveries but still within the low 60s expected range, with a robust ROE in excess of 25%.
Group life and AD&D benefit ratio increased to 69.7% from 65.4%, driven by higher average claim size, consistent with expectations of around 70%.
Holding company cash ended the quarter at $2 billion with a risk-based capital ratio of approximately 485%, well above targets.
International segment showed solid premium growth of 12% on a constant currency basis, with adjusted operating income slightly down to $41.6 million from $42.5 million, impacted by inflation differences.
Investment income from alternative assets yielded 7% annualized, slightly below the long-term target of 8% to 10%, with total alternative invested assets valued at $1.5 billion.
Unum Group reported second quarter 2025 adjusted after-tax operating income per share of $2.07, down from $2.16 in the same period last year, reflecting earnings pressure mainly from claims experience in group products and the Closed Block.
Unum U.S. supplemental and voluntary lines saw adjusted operating income increase to $123.2 million from $115.2 million, with a benefit ratio of 44.3%, improved from 45.1% due to favorable benefits experience.
Arch Capital reported after-tax operating income of $979 million for Q2 2025, with operating earnings per share of $2.58 and an annualized operating return on average common equity of 18.2%.
Book value per share grew by 7.3% in the quarter and 11.4% year-to-date, reflecting strong execution and long-term value creation.
Mortgage segment delivered $238 million of underwriting income despite low mortgage originations, supported by a strong global in-force portfolio and high persistency.
Net investment income rose 7% from the first quarter to $405 million, with overall yields remaining elevated.
Net premium written surpassed $2 billion in the Property and Casualty Insurance group, up 30.7% year-over-year, driven largely by the acquisition of U.S. middle market and entertainment businesses.
Reinsurance segment generated $451 million in underwriting income with over $2 billion in net premium written, showing 8.7% growth in gross written premium year-over-year.
The combined ex-cat accident year combined ratio was 80.9%, down 10 basis points from last quarter, including $139 million of favorable prior year development.
Dafinchi