Adjusted non-GAAP earnings excluding significant variances were $469 million or $2.07 per share, an 18% increase in EPS over 2024.
Life insurance sales were strong with record nonqualified sales, but pretax operating earnings declined due to higher mortality.
Net cash flow was negative $2.6 billion in the quarter, an improvement sequentially driven by positive net cash flow from global institutional clients.
Non-GAAP operating ROE, excluding AAR, was 14.9%, improving 170 basis points compared to the year-ago period.
Principal Asset Management sales were $33 billion, up 19% over the prior year quarter.
Reported non-GAAP operating earnings were $489 million, up 27% year over year, and EPS was $2.16, up 33%.
Retirement Solutions sales were $6 billion, up 7% year over year.
Revenue growth, strong margin and expense discipline supported results, alongside a lower effective tax rate and share repurchases.
Second quarter reported net income excluding exited business was $432 million with minimal credit losses of $17 million.
Specialty Benefits earnings grew 10% with margin expansion of 100 basis points.
Total company managed AUM reached $753 billion, a 5% increase over the sequential quarter and 8% over 2024.
Deposit costs were managed below 2%, with cumulative deposit beta reaching mid-50% range, matching terminal beta from the rising rate cycle.
Loan growth was strong, with commercial loans up about $3 billion year-to-date, and average loans up $1.6 billion period-end.
Net charge-offs were $102 million, down 7% sequentially, with credit metrics improving for the sixth consecutive quarter.
Net interest income grew 28% year-over-year and 4% sequentially, with net interest margin increasing 8 basis points to 2.66%.
Noninterest income rose 10% year-over-year, driven by investment banking, commercial mortgage servicing, commercial payments, and wealth management.
Pre-provision net revenue increased by $44 million sequentially, marking the fifth consecutive quarter of growth, with aggregate PPNR up over 60% since Q1 2024.
Reported second quarter earnings per share of $0.35, with revenues up 21% year-over-year and expenses up about 6% excluding charitable contributions.
Tangible book value per share increased 3% sequentially and 27% year-over-year.
Progress on Anchor Space Mark-to-Market Opportunity and Leasing Strategy
Full control of 10 anchor spaces vacated by Party City and JOANN's as of Q2 2025.
Six of the 10 anchor spaces leased with new tenants including Burlington, Boot Barns, Bassett Furniture, Slick City Action Park, and Bob's Discount Furniture.
Targeting a 40% to 60% positive cash leasing spread on these anchor spaces.
Overall leasing pipeline of $4.6 million, representing 4.6% of in-place cash rents, supporting earnings growth into 2026.
Classified and nonperforming loans increased due to 4 downgraded loans totaling $18 million, but no expected losses due to conservative underwriting and collateral.
Deposits increased at an 11% annual rate, with noninterest-bearing deposits up $41.9 million, comprising 27% of total deposits.
Home Bancorp reported Q2 2025 net income of $11.3 million or $1.45 per share, up $0.08 from Q1 and $0.43 from a year ago.
Loans grew by $17.3 million (3%) in Q2, impacted by slower commercial construction activity and paydowns of about $20 million.
Net charge-offs were low at $335,000 for the quarter, or 3 basis points year-to-date.
Net interest margin (NIM) expanded for the fifth consecutive quarter to 4.04%, driven by an 8 basis point increase in earning asset yields and stable deposit costs.
Noninterest income was $3.7 million, in line with expectations, while noninterest expenses increased to $22.4 million due to compensation and a $987,000 SBA receivables write-down.
Share repurchases totaled 147,000 shares at an average price of $43.72, with 391,000 shares remaining on the buyback plan.
Dafinchi