- 30-plus delinquency was 5.07%, down 29 basis points year-over-year.
- Capital generation was $222 million, up 63% year-over-year.
- C&I adjusted earnings were $1.45 per share, up 42%.
- C&I net charge-offs were 7.6%, down 60 basis points from last quarter and down 88 basis points year-over-year.
- Consumer loan net charge-offs were 7.2%, down 64 basis points from last quarter and down 110 basis points year-over-year.
- Consumer loan yield was 22.6%, up 19 basis points from the first quarter and up 67 basis points year-over-year.
- GAAP net income was $167 million or $1.40 per diluted share, up 137% from $0.59 per diluted share in Q2 2024.
- Interest income grew 10% year-over-year driven by receivables growth and yield improvement.
- Managed receivables ended the quarter at $25.2 billion, up 7% from a year ago.
- Net leverage at the end of Q2 was 5.5x, flat to last quarter.
- Operating expenses were $415 million, up 11% compared to a year ago.
- Originations grew 9%, driven by expanded use of granular data and product innovations.
- Total revenue grew 10% and receivables grew 7% year-over-year, crossing the $25 billion mark for the first time.
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- Common equity Tier 1 ratio increased, loan-to-deposit ratio remained flat at 81%, and tangible book value per common share grew over 3% to $35.13.
- Expenses increased modestly by $2.1 million due to investments in human capital and technology, maintaining an efficiency ratio of 45.4%.
- Net interest income increased by $9 million, while net interest margin decreased 4 basis points to 3.44%, influenced by deposit mix shifts and higher cash balances.
- Non-interest income rose by $3 million, driven by deposit service fees and lower credit valuation adjustment impact.
- Non-performing assets decreased 5%, and commercial classified loans declined 4%, indicating improving asset quality.
- Provision for credit losses decreased by $31 million to $47 million, with net charge-offs at $36 million and allowance for loan losses at $722 million (1.35% of loans).
- Return on tangible common equity was 18%, ROAA nearly 1.3%, with over 1% linked quarter growth in loans and deposits.
- Revenue grew 1.6% over the prior quarter, with net income to common shareholders up $31 million and EPS increasing to $1.52 from $1.30.
- Allowance for loan losses increased to $232 million or 127 basis points of total loans.
- Capital ratios remained strong with CET1 at 14.4% and TCE at 10.8%.
- Deposits grew 8% annualized with stable deposit costs.
- Deposits totaled $21.2 billion, increasing $424 million from prior quarter.
- Loan growth was 8% annualized, driven by profitable organic growth and strategic hiring.
- Loans increased by $385 million, led by commercial lending growth.
- Net income was $100.2 million or $0.50 per diluted share, with operating earnings of $0.41 per diluted share.
- Net interest income increased 7% from Q1 to $202 million ($206.8 million FTE).
- Net interest margin expanded by 21 basis points to 3.59%.
- Noninterest expense increased to $137 million due to higher operating expenses and merger-related costs.
- Noninterest income was $42.9 million compared to a loss in Q1 due to investment portfolio repositioning.
- Nonperforming loans improved to 30 basis points with no net charge-offs.
- Operating earnings were $81.7 million, a 21% increase from the first quarter.
- Operating efficiency ratio improved to 50.8% due to higher revenues and effective expense management.
- Operating return on average assets increased by 21 basis points to 1.3%.
- Operating return on average tangible equity rose from 11.7% to 13.6%.
- Provision for loan losses was $7.6 million, up from $6.6 million.
- Tangible book value per share increased 4% to $12.53.
- Total assets reached $25.5 billion, up 2% from March 31.
- Wealth management assets under management reached a record $8.7 billion.
- 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.
- Liquidity remained strong at over $1 billion, representing more than 50% of total equity.
- Net interest income increased due to new investments with attractive yields and swaps adding carry value.
- Over $130 million gains realized on the portfolio in Q3 from spread tightening.
- Raised $254 million in new capital in Q3, $776 million year-to-date, growing the portfolio by 10% since Q2 and over 50% since the start of the year.
- Third quarter net interest income did not include the impact of the September FOMC rate cut, expected to boost Q4 margins.
- Total economic return was 10.3% for the quarter and 11.5% year-to-date.
- Year-to-date shareholder returns were 20%, 23% over the last year, and nearly 72% over three years with dividends reinvested.
- Asset quality remained stable with criticized loans down 8% quarter-over-quarter and allowance coverage at 1.04%.
- Charge-offs increased to $12 million annualized (33 bps) from $8 million (25 bps) in Q1.
- Earnings per diluted share excluding notable items remained flat at $0.19 due to 7 million shares issued in the Territorial acquisition.
- Net income excluding notable items was $24.5 million in Q2 2025, up 7% from $22.9 million in Q1 2025.
- Net interest income increased 17% quarter-over-quarter to $118 million, driven by Territorial acquisition, organic loan growth, and margin expansion.
- Net interest margin expanded 15 basis points to 2.69%.
- Noninterest expense excluding notable items increased to $92 million from $81 million due to Territorial operations addition.
- Noninterest income excluding notable items rose 44% year-over-year to $15.9 million.
- Pretax pre-provision net revenue excluding notable items grew 17% quarter-over-quarter to $41.2 million.
- Provision for credit losses excluding notable items was $10.5 million, up from $5 million in Q1.
- Adjusted pre-tax earnings were $28.4 million, with net income of $22.4 million or $1.17 per diluted share after tax adjustments.
- Asset quality remained stable with non-accrual loans at $48.6 million and classified assets at $82.8 million; net charge-offs annualized at 10 basis points.
- Loan portfolio grew with $665 million in loans added from NBC merger; loan production was $243 million, up 23% linked quarter at an average rate of 7.14%.
- Net interest income increased to $62.5 million, up $12.7 million linked quarter, driven by margin expansion and asset growth.
- Net interest margin improved by 28 basis points to 4.45%, with core margin normalized at 4.35%.
- Non-interest expenses were $49.1 million including M&A charges; adjusted non-interest expenses were $42.9 million, up 8.3% due to NBC acquisition.
- Non-interest income (excluding portfolio repositioning) was $8.9 million, up $300,000 from Q2, driven by customer service charges and integration of NBC franchise.
- Reported a net loss of $29.7 million or $1.57 per diluted share for Q3 2025, primarily due to a $53.4 million realized loss on bond portfolio repositioning and $6.2 million in M&A costs.
- Adjusted EBITDA decreased to $18 million from $20.5 million year-over-year.
- Capital expenditures and leasing costs rose significantly to $15.6 million from $6.3 million due to accelerated leasing activity.
- Core FFO for Q2 2025 was $11.5 million or $0.20 per share, compared to $14.2 million or $0.25 per share in the prior year quarter.
- G&A expenses were $4.8 million, slightly higher than $4.5 million in Q2 2024, with expected savings from restructuring to begin in later quarters.
- Net debt to annualized adjusted EBITDA was 6.93x at quarter end, with net debt to gross real estate assets at 32%.
- Orion Properties reported total revenues of $37.3 million in Q2 2025, down from $40.1 million in Q2 2024.
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