- Capital ratios increased quarter-over-quarter and the company remains well capitalized by all measures.
- Cost of deposits declined by 12 basis points to 2.01%, and loan yields were impacted by lower purchase loan accretion.
- Efficiency ratio improved to 58.7% in Q2 2025 from 60.5% in Q1 2025, excluding merger-related expenses.
- Fee income increased by $1.3 million quarter-over-quarter, representing 21% of operating revenue, led by wealth management fees.
- GAAP earnings were strong despite lingering merger-related expenses, with core earnings increasing.
- Net interest margin (NIM) increased to 4.07% in Q2 2025 from 4.00% in Q1 2025, with potential for further upside.
- Noninterest expense declined by approximately $600,000 in the quarter, including merger-related expenses and severance costs.
- Normalized EPS reached 1.04, adjusted ROA was 1.51%, and adjusted ROE was 15.1%, placing the company near the top of its peer group.
- Return on average assets was 1.51% and return on average equity was 15.12% for Q2 2025, up from 1.45% and 14.97% in Q1 2025 respectively.
- Total loans grew to $3.93 billion with commercial loans growing 2% annualized; deposits declined by $117 million.
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- Allowance for credit losses ratio increased slightly to 1.45%, with a $2.5 million provision driven by specific reserves and net charge-offs.
- Capital ratios remain strong with CET1 at 13.86% and Tier 1 leverage at 12.12%, tangible common equity to tangible assets at 9.98%, and tangible book value per share increased to $26.70.
- Deposits decreased by $53.6 million to $3.74 billion, with a shift toward more noninterest-bearing deposits, increasing their ratio to 26.7%.
- Loans held for investment grew by $23.1 million or 3% annualized to $3.1 billion, despite higher loan payoffs totaling $49.1 million in multifamily loans.
- Net interest income increased to $42.5 million from $38.5 million sequentially, with net interest margin (NIM) rising to 4.07% from 3.81%, partly due to the onetime interest recovery.
- Noninterest expense increased slightly to $33.5 million, driven by higher personnel and professional service costs.
- Noninterest income rose to $12.2 million from $10.6 million, mainly due to mortgage banking revenue increases and fair value adjustments.
- Second quarter diluted EPS was $0.86, up from $0.72 in the linked quarter, boosted by a $1.6 million onetime interest recovery related to a fully repaid nonaccrual loan.
- Adjusted net operating income was $0.23 per share for the quarter, with net income from continuing operations available to common shareholders at $3.2 million or $0.07 per diluted share.
- Gross written premium for casualty E&S increased 4% year-over-year, with the overall E&S segment growing 3%.
- James River Group reported an annualized adjusted net operating return on tangible common equity of 14% for Q2 2025, consistent with their mid-teens return target.
- Net investment income was $20.5 million, up from $20 million in the previous quarter, with a conservative portfolio averaging an A+ credit rating and 3.5 duration.
- Segment expenses declined over 20% year-to-date compared to the prior year, with corporate expenses down $2.4 million sequentially and $400,000 quarter-over-quarter.
- Tangible common book value per share increased 5.3% to $7.49.
- The combined ratio in the E&S segment was 91.7%, nearly 4 points lower than the prior year quarter, supported by underwriting profit of $11.7 million.
- The group's overall combined ratio was 98.6%, consisting of a 68.1% loss ratio and a 30.5% expense ratio, with retroactive capacity lowering the combined ratio by 6.1%.
- Adjusted EBITDA was $195.7 million.
- Gain on sale margin increased to 113 basis points, up 19 basis points from Q1 2025.
- MSR portfolio stood at $211.2 billion UPB with a weighted average coupon of 5.51%.
- Net income was $314.5 million, including a $111 million decline in fair value of MSRs.
- Purchase originations totaled $27.3 billion, marking the third-best purchase quarter ever and tracking to over $100 billion for the year.
- Refinance volume doubled year-over-year to $12.4 billion, representing about 11% of the industry volume despite owning only 2% of the servicing market.
- Total equity increased to $1.7 billion and cash position was $490 million with total available liquidity of $2.2 billion.
- UWM reported $39.7 billion in production volume for Q2 2025, the best quarter since 2021 and nearly 20% higher than Q2 2024.
- Average loans increased by an annualized 2.1% and customer deposits by 3.1% sequentially.
- Common Equity Tier 1 ratio stood at 11.3%, with tangible book value per share growing 17% year-over-year.
- Customer fees, excluding net credit valuation adjustment, grew by $10 million sequentially, with adjusted expenses declining by $1 million.
- Diluted earnings per share was $1.48, down from $1.63 in the prior quarter but up from $1.37 a year ago, impacted by credit valuation adjustments and elevated credit provisions.
- Efficiency ratio improved to 59.6%, reflecting positive operating leverage as revenue growth outpaced expense growth.
- Net charge-offs totaled $56 million or 37 basis points annualized, largely driven by a $50 million charge-off related to two specific C&I loans.
- Net interest margin expanded by 11 basis points sequentially to 3.28%, marking the seventh consecutive quarter of margin improvement.
- Provision for credit losses was $49 million, reducing allowance for credit losses by $7 million relative to prior quarter.
- Credit costs remained low with a $7.5 million provision expense and net charge-offs at 6 basis points; one day 1 PCD charge-off of $17 million was recorded on an acquired relationship.
- Loan production increased 57% from about $2 billion to over $3 billion quarter-over-quarter, contributing to solid loan growth.
- Net interest income increased by $33 million over Q1, driven by loan coupon yields, securities portfolio restructuring, and lower cost of deposits.
- Noninterest expenses were $351 million, at the low end of guidance, resulting in a second quarter efficiency ratio of 49.1%, bringing the year-to-date ratio below 50%.
- Noninterest income remained stable at $87 million, with gains in correspondent business offset by a slight decline in mortgage revenue.
- SouthState reported a strong Q2 2025 with adjusted return on assets at 1.45% and return on tangible common equity near 20%, excluding merger costs.
- Tangible book value per share increased 8.5% year-over-year to $51.96 despite dilution from the IBTX merger; CET1 capital ratio improved compared to June 2024.
- Adjusted diluted EPS was $3.56, up 9% year-over-year and 60% higher than the same quarter three years ago.
- Adjusted operating margin improved to 50.9%, up 130 basis points from the prior year.
- Annualized compensation expense declined 4% year-to-date, supporting margin expansion efforts.
- MIS revenue was flat year-over-year, just shy of $1 billion for the second consecutive quarter, with adjusted operating margin expanding 100 basis points to 64.2%.
- Moody's Analytics revenue grew 11% with recurring revenue up 12%, and adjusted operating margin expanded 360 basis points to 32.1%.
- Moody's reported second quarter 2025 revenue of $1.9 billion, a 4% year-over-year increase despite a challenging issuance environment in April.
- Private credit-related revenue in MIS grew 75% year-over-year, contributing to flat revenue growth despite a 12% decline in issuance volume.
Dafinchi