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.
Agency gross revenues increased $61 million or 25%, net agent revenues up 21%.
Domestic commercial revenues increased $24 million or 46%, with average fee per file increasing 25% to $16,900.
Domestic residential fee per file slightly declined to $2,900 from $3,000 last year.
Employee cost ratio improved to 30% from 31%, other operating expense ratio improved to 25% from 26%.
Net cash provided by operations improved by $32 million compared to last year.
On an adjusted basis, second quarter net income was $38 million or $1.34 per diluted share compared to $25 million or $0.91 per diluted share last year.
Real estate solutions segment revenues improved $20 million or 22%, with adjusted pretax income 15% higher.
Stewart reported second quarter net income of $32 million or $1.13 per diluted share based on revenues of $722 million.
Title pretax income improved by $16 million or 48%, with adjusted pretax income $52 million, 35% better than last year.
Title segment operating revenues improved $96 million or 19%, driven by both direct and agency title operations.
Total cash and investments were approximately $390 million in excess of statutory premium reserve requirements.
Total stockholders' equity at June 30 was approximately $1.4 billion with a book value of $51 per share.
Total title loss expense increased slightly to $22 million, but title loss ratio improved to 3.6% from 4.2% last year.
Record Net Interest Income and Margin Expansion in 2Q 2025
First BanCorp achieved record net interest income of $215.9 million, with an 8 basis point increase in net interest margin to 4.56%.
Margin improvement was partly due to reinvestment of maturing securities and lower funding costs, with an expected continued 5-7 basis point increase in the coming quarters.
Exclusion of one-time fees from early loan cancellations shows underlying margin strength.
Dafinchi