- A nonrecurring tax benefit of $82 million contributed to a $60 million tax benefit in the quarter, lowering future tax provision rate to 25.2%.
- Broker direct originations grew nearly 60%, with market share at approximately 5%.
- Correspondent lending acquisitions increased 30% to $30 billion with margins at 25 basis points, slightly down from Q1.
- Excluding fair value changes and a nonrecurring tax benefit, operating ROE was 13%.
- Hedge costs were $54 million, mostly incurred in April due to interest rate volatility, with fair value of MSR increasing by $16 million net of hedges.
- PennyMac ended the quarter with $700 billion servicing portfolio UPB and $4 billion total liquidity.
- PennyMac Financial Services reported Q2 2025 net income of $136 million, or $2.54 diluted EPS, with an annualized ROE of 14%.
- Production segment pretax income was $58 million, down from $62 million in Q1, with acquisition and origination volumes up 31% to $38 billion UPB.
- Servicing segment pretax income was $54 million, or $144 million excluding valuation changes, with servicing expenses declining to 4.6 basis points of average servicing portfolio UPB.
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- Allowance for loan losses increased slightly to $248.6 million, with a decrease in consumer loan allowance due to improved unemployment forecasts.
- First BanCorp reported net income of $80 million for 2Q 2025, with a return on assets of 1.69% and net interest margin expansion to 4.56%.
- Net interest income increased to $215.9 million, $3.5 million higher than last quarter, despite no fees from early loan cancellations this quarter.
- Nonperforming assets remained flat at 68 basis points of total assets; net charge-offs decreased to 60 basis points from 68 basis points in 1Q.
- Operating expenses were $123.3 million, stable quarter-over-quarter, with an efficiency ratio maintained at 50%.
- Tangible book value per share increased 5% to $11.16; tangible common equity ratio expanded to 9.6% due to $41 million increase in investment portfolio fair value.
- Total loans grew 6% linked quarter annualized, driven by strong commercial loan production in Puerto Rico and Florida.
- Commercial real estate payoffs totaled $235 million in Q3, causing a 1.5% headwind to loan growth.
- Deposits increased 53.8% year-over-year to $21.3 billion, fully funding loan growth.
- Efficiency ratio improved by 10 percentage points to 55%, reflecting expense synergies and cost control.
- Fee income grew 52% year-over-year driven by wealth management and post-acquisition customer base.
- GAAP net income was $81 million or $0.84 per share for Q3 2025.
- Net interest margin improved 58 basis points year-over-year to 3.53%.
- Reported net income excluding merger and restructuring expenses of $90 million, EPS of $0.94, a 68% increase year-over-year.
- Total assets increased 49% year-over-year to $27.5 billion, including $18.9 billion in total portfolio loans.
- All rent payments are current from tenants despite the increased provision for credit losses.
- Operating expenses increased by $65.6 million primarily due to a noncash provision for credit losses based on a more pessimistic economic forecast.
- Record year-over-year revenue, AFFO, and adjusted EBITDA were achieved in the quarter.
- Rent coverage ratios ranged from 1.69 to 2.72x on master leases as of the prior quarter end.
- Total income from real estate for Q2 2025 exceeded Q2 2024 by over $14 million, driven by cash rent increases of over $22 million from acquisitions and escalations.
- Community operating expenses increased by 7%, mainly due to acquisitions and higher payroll and maintenance costs, but same-property operating expense ratio improved to 38.2% from 39.4% last year.
- Debt totaled approximately $659 million with a weighted average interest rate of 4.63%, mostly fixed rate, and total market capitalization increased 13% to approximately $2.4 billion.
- Gross sales of manufactured homes increased by 19% for the quarter, with gains from sales at 14% of total sales.
- Normalized FFO for Q2 2025 was $0.23 per share, unchanged from Q2 2024, with a 16% increase in normalized FFO in dollar terms to $19.5 million.
- Same-property rental and related income increased by 8%, and same-property NOI increased by 10% for the quarter.
- Total revenue increased approximately 10% year-over-year to $66.6 million, driven by a 9% increase in rental and related income and a sales record of $10.5 million in manufactured home sales.
- Distributable earnings (DE) were $0.24 per share, negatively impacted by $0.10 per share in credit losses on fair value loans, higher than Q1 by $0.06 per share.
- Economic book value declined modestly by 1% to $13.69 per share, while GAAP book value was $13.12 per share, also down about 1%.
- Excluding credit losses, DE would have been $0.35 per share, nearly covering the common dividend of $0.36 per share.
- G&A expenses declined to $29.9 million from $33.5 million in Q1, including $1.2 million in severance and transition costs related to expense reduction initiatives.
- MFA Financial reported GAAP earnings of $33.2 million or $0.22 per share in Q2 2025, driven by growth in net interest income to $61.3 million and modest net mark-to-market gains.
- MFA paid a common dividend of $0.36 per share for the quarter and delivered a total economic return of 1.5% for Q2 and 3.4% year-to-date.
- Hippo achieved positive net income from operating activities for the first time, with Q2 net income of $1 million and adjusted net income of $17 million, reflecting a $41 million and $37 million improvement respectively compared to Q2 2024.
- Hippo reported gross written premium growth of 16% year-over-year to $299 million in Q2 2025, driven by organic growth and new hybrid fronting programs.
- Operating expenses decreased by 16% year-over-year, falling from 46% to 30% of revenue, demonstrating improved operating leverage.
- Revenue increased 31% year-over-year to $117 million, supported by a 12% growth in gross earned premium and a 9 percentage point increase in premium retention to 39%.
- The consolidated net loss ratio improved significantly by 46 percentage points year-over-year to 47%, aided by underwriting actions, claims improvements, and favorable reserve developments.
- Classified and nonperforming loans increased due to 4 downgraded loans totaling $18 million, but no expected losses due to conservative underwriting and collateral.
- Deposits increased at an 11% annual rate, with noninterest-bearing deposits up $41.9 million, comprising 27% of total deposits.
- Home Bancorp reported Q2 2025 net income of $11.3 million or $1.45 per share, up $0.08 from Q1 and $0.43 from a year ago.
- Loans grew by $17.3 million (3%) in Q2, impacted by slower commercial construction activity and paydowns of about $20 million.
- Net charge-offs were low at $335,000 for the quarter, or 3 basis points year-to-date.
- Net interest margin (NIM) expanded for the fifth consecutive quarter to 4.04%, driven by an 8 basis point increase in earning asset yields and stable deposit costs.
- Noninterest income was $3.7 million, in line with expectations, while noninterest expenses increased to $22.4 million due to compensation and a $987,000 SBA receivables write-down.
- Share repurchases totaled 147,000 shares at an average price of $43.72, with 391,000 shares remaining on the buyback plan.
Dafinchi