Earnings per share (EPS) for the quarter was $1.76, a 21% increase from the prior quarter.
Net interest income increased by $6.7 million or about 10% quarter over quarter, driven by loan growth and lower funding costs.
Net interest margin (NIM) expanded by 15 basis points to 3.83%, marking the seventh consecutive quarter of margin expansion.
Non-interest expenses were flat at $43.1 million with some offsetting movements in payroll taxes, professional fees, IT project costs, licensing, and other expenses.
Non-interest expense was flat at $43.1 million, with some offsetting movements in compensation, professional fees, IT project costs, licensing, and other expenses.
Non-interest income declined by $1 million primarily due to a one-time income recognition in the prior quarter.
Provision expense increased to $6.4 million due to loan growth, macroeconomic factors, and a $2.4 million reserve for a single non-performing loan.
Second quarter loans increased by $271 million or 4.3%, and core deposits rose by $342 million or 5.3%.
Tangible book value per share increased by more than 4% to $68.44, the tenth consecutive quarter of book value accretion.
Total revenue grew 8% quarter over quarter to $76.2 million, and net income rose more than 15% to $18.8 million.
Total revenue grew 8% quarter over quarter to $76.2 million, with net income rising over 15% to $18.8 million.
Significant Operating Leverage and Margin Expansion Strategy
Primis highlighted its wide operating leverage, with incremental margins in the mid-4% range, driven by the sale of the life premium portfolio and the addition of the warehouse lending team.
The company emphasized that its digital platform is scalable and targeted, contributing $36 million at a 4.06% rate, supporting low-cost deposits and high-yield lending.
Management stressed that deposit costs have decreased by 32% year-over-year to 2.89%, significantly improving margin and deposit competitiveness.
Book value increased to $6.7 billion or $12.71 per share, up from $12.39 in the prior quarter.
Dividend yield remains strong at 8.9%, paying out $0.25 per share.
Genesis Capital achieved a record quarter with origination north of $4 billion, more than doubling since acquisition in 2022.
Newrez's servicing portfolio grew to $864 billion with a typical ROE around 20%.
Return on equity (ROE) for the entire company was 17%, with earnings available for distribution at $291.1 million or $0.54 per diluted share, representing an 18% ROE.
Rithm Capital reported GAAP net income of $283.9 million or $0.53 per diluted share for Q2 2025.
Sculptor's asset management business saw $3.5 billion of AUM growth since acquisition, with strong fundraising and performance.
The company ended the quarter with a record $2.1 billion in cash and liquidity.
Adjusted free cash flow was $656 million, impacted by timing shifts in working capital, with full year free cash flow expected between $6 billion and $7 billion.
Non-GAAP earnings per share increased 18% year-over-year, supported by strong credit performance, branded checkout flow-through, improvements in PSP profitability, and Venmo.
Non-GAAP operating income grew 13% to more than $1.6 billion, with operating margin increasing about 130 basis points to nearly 20%.
PayPal delivered its sixth consecutive quarter of profitable growth with transaction margin dollars growing 8%, excluding interest on customer balances.
Restructuring costs of approximately $92 million were incurred related to workforce actions and tech transformation initiatives.
Share repurchases totaled $1.5 billion in the quarter, with $6 billion repurchased over the past four quarters.
Total active accounts increased by nearly 2 million to 438 million, with monthly active accounts up 2% year-over-year to 226 million.
Total payment volume grew 6% at spot and 5% on a currency-neutral basis to nearly $444 billion.
Transaction revenue accelerated to 4% growth to $7.4 billion, with other value-added services revenue growing 16% to $847 million.
Transaction take rate declined by 4 basis points to 1.68%, driven by foreign exchange hedges, product and merchant mix.
Venmo TPV increased 12%, marking its highest growth rate in 3 years, and branded experiences TPV grew 8% currency neutral.
Dafinchi