- Capital ratios remained strong with CET1 at 13.99% and tangible common equity ratio at 10.20%.
- Core revenues totaled $182 million, with total interest income of $194 million and interest expense of $42 million.
- Net charge-offs were $13 million, down $7.6 million sequentially, with a net charge-off rate of 0.64%.
- Net interest margin was 5.31%, slightly down from 5.42%, impacted by increased liquidity and wholesale funding.
- Noninterest expenses were $94.8 million, in line with guidance of $95-96 million for 2025.
- Record assets exceeded $12 billion and loans surpassed $8 billion, with strong loan origination and core deposit flows.
- Return on average assets was 1.73% and return on average tangible common equity was 17%.
- Second quarter earnings per share diluted was $1.15, a 6.5% increase year-over-year, driven by a 1.5% increase in total core revenue.
- Tangible book value per share was $27.67, and efficiency ratio was 52%.
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- Adjusted total noninterest expenses decreased 1% year-over-year excluding repurchase debt impacts.
- Average loans decreased 1% year-over-year to $17.6 billion due to higher payment rates and elevated credit losses.
- Credit sales increased 5% year-over-year to $6.8 billion despite inflation and weak consumer sentiment.
- Net income of $188 million and adjusted net income of $191 million with EPS of $4.02, excluding $3 million post-tax repurchase debt expenses.
- Net loss rate improved to 7.4%, down 40 basis points year-over-year and 50 basis points sequentially.
- Return on average tangible common equity was 28.6% for the quarter.
- Revenue declined 1% year-over-year to $971 million, impacted by lower billed late fees and pricing changes.
- Tangible book value per common share grew 19% year-over-year to $56.36.
- Earnings per share increased 8.2% versus last quarter and 17.8% versus Q2 2024 on an adjusted basis.
- Net interest income rose by $1.3 million or 2.4% from the prior quarter due to higher net interest margin and more days in Q2.
- Net interest margin improved to 3.51% from 3.44% primarily due to higher loan and investment portfolio yields.
- Noninterest expense decreased by $298,000 from prior quarter, mainly from lower benefit costs and payroll taxes.
- Provision for credit losses was $956,000, reflecting loan growth and net charge-offs.
- Regulatory capital ratios remain strong with tangible common equity ratio at 9.4%, up from 9.3%.
- Repurchased 193,700 shares at $4.5 million cost during Q2, with 797,000 shares remaining under repurchase plan.
- Total deposits decreased $60.9 million due to seasonal tax payment effects, but average total deposits increased $35.4 million from prior quarter.
- Total loan balances increased by $10 million in Q2, with loan yields at 5.50%, up 5 basis points from Q1.
- Agency business revenue was $717 million, up 16%, reflecting first quarter economic activity due to reporting lag.
- Closed orders increased 2%, with average revenue per order up 30% due to broad-based strength across asset classes and transaction sizes.
- Commercial revenue increased 33%, setting an all-time record in the National Commercial Services division for fee per file in a quarter.
- Debt-to-capital ratio was 32.1%, or 23.1% excluding secured financings payable.
- Effective tax rate was 24.6%, slightly above the normalized rate of 24%.
- First American reported second quarter adjusted earnings per share of $1.53, including $0.12 per share related to executive separation costs.
- GAAP earnings were $1.41 per diluted share; adjusted earnings excluded net investment losses and purchase-related intangible amortization.
- Home Warranty pretax income rose 35%, driven by a lower loss rate and revenue growth through the direct-to-consumer channel.
- Home Warranty revenue was $110 million, up 3%, with a loss ratio improvement from 46% to 41%.
- Information and other revenues rose 10%, primarily from Canadian operations with higher refinance activity.
- Investment income grew 17%, driven by escrow deposits and higher interest income from the investment portfolio.
- Pretax margin in the title segment was 12.6% (13.2% adjusted); Home Warranty pretax margin was 20.2% (20.7% adjusted).
- Provision for policy losses was $39 million or 3.0% of title premiums and escrow fees, unchanged from prior year.
- Residential purchase revenue declined 3% due to lower demand for new homes, while refinance revenue increased 54% but remains only 5% of direct revenue.
- Share repurchases totaled 1 million shares for $61 million in Q2, with an additional 577,000 shares repurchased in July.
- Title segment revenue was $1.7 billion, up 13%, with commercial revenue at $234 million, a 33% increase.
- AFFO was $13.6 million or $0.50 per diluted share, also reduced by $0.06 of one-time items.
- FFO on a diluted share basis was $0.23, reduced by $0.28 of one-time items related to the geriatric tenant and severance charges.
- General and administrative expenses were $10.6 million, but excluding $5.9 million in severance and transition-related charges, G&A was $4.7 million, a $400,000 reduction quarter-over-quarter.
- Interest expense increased by $240,000 to $6.6 million due to increased borrowings and an extra day of interest.
- Property operating expenses decreased by approximately $500,000 quarter-over-quarter to $5.6 million, primarily due to lower seasonal expenses such as snow removal and utilities.
- The geriatric behavioral hospital tenant remains unable to pay full rent and interest; notes and interest related to this tenant are fully reserved, and rent is recognized on a cash basis.
- Total revenue for Q2 2025 was $29.1 million, but excluding a $1.7 million reversal of interest receivable from the geriatric behavioral hospital tenant, core revenue was approximately $30.7 million, representing 2.2% growth quarter-over-quarter compared to Q1 2025.
- Assets under custody and administration grew 5% year over year to $17 trillion, while assets under management increased 9% year over year.
- Expenses increased 4.7% year over year, with positive operating leverage of 110 basis points and expense to trust fee ratio improving by 120 basis points to 112%.
- Net interest income on an FTE basis was $596 million, down 3% sequentially but up 5% year over year, with net interest margin increasing to 1.7%.
- Return on average common equity reached 14.8%, with a pretax margin expansion of nearly 200 basis points compared to the prior year.
- Revenue increased 6% year over year, driven by favorable equity markets and well-managed expense growth.
- Third quarter net income was $458 million with earnings per share of $2.29, reflecting a 14% increase year over year excluding notable items.
- Trust and investment servicing fees totaled $1.3 billion, up 6% year over year, with wealth management fees up 5% and asset servicing fees up 6%.
- Year to date, Northern Trust returned 110% of earnings to shareholders, including $431 million in the quarter through dividends and stock repurchases.
- Adjusted compensation and related costs of $662 million essentially flat to Q1 2025; technology, occupancy, and facility costs up 7% from Q1 2025.
- Adjusted diluted earnings per share of $2.24 for Q2 2025 is in line with prior quarter's $2.23 and Q2 2024 EPS of $2.26.
- Adjusted net revenue of $1.76 billion is flat to Q2 2024 and down marginally from Q1 2025.
- Adjusted operating expenses of just over $1.1 billion, up 1% from Q1 2025 and 3.7% from Q2 2024.
- Average equity AUM down 5% and overall average AUM down 2% from Q1 2025; effective fee rate lowered to 39.6 basis points due to mix shift and flows into lower-priced products.
- Net outflows of $14.9 billion driven by U.S. equities, timing of client redemptions, and rebalancing activity coinciding with equity market snapback.
- Positive net flows in fixed income, multi-asset, alternatives, and $2.5 billion net flows into ETF products.
- Returned over $395 million to stockholders in first half of 2025, including $286 million in dividends and $109 million in share buybacks during Q2.
- Client equity surpassed $750 billion, up 40% from last year, significantly outpacing the S&P 500's 16% growth.
- Commission revenue increased by 23% year-over-year, reaching a record $537 million in Q3 2025.
- Customer trading volumes rose 27% in options and 67% in equities, while futures volumes declined 7%.
- Execution and clearing costs decreased 21% year-over-year due to SEC fee reductions and improved smart order routing.
- Net interest income rose 21% to a quarterly record of $967 million despite lower benchmark interest rates.
- Pretax margin remained strong at 79%, consistent with prior periods.
- Total assets increased 35% year-over-year to $200 billion, supported by higher margin lending and segregated cash balances.
- Total net revenues grew 21%, driven by higher trading volumes in stocks and options.
- Adjusted operating margin expanded to 39.6% in Q2, up 120 basis points from prior year.
- Financial Solutions segment grew 7% organically in Q2, led by issuing and digital payments growth.
- Fiserv delivered 8% adjusted and organic revenue growth in Q2 2025, with 16% adjusted EPS growth year-over-year.
- Free cash flow was $1.2 billion in Q2 and $1.5 billion for the first half of 2025, with an expected full year of approximately $5.5 billion.
- Merchant Solutions operating margin declined 200 basis points to 34.6% due to investments and acquisitions, while Financial Solutions margin expanded to 48.7%.
- Merchant Solutions segment grew 9% organically in Q2, with 10% adjusted revenue growth, driven by Clover and Commerce Hub.
- Share repurchases totaled $2.2 billion in Q2, with guidance increased to approximately 130% of free cash flow for 2025.
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