- Adjusted net operating income was $180 million in Q2 2025, up 6% year-over-year.
- Consolidated insurance and other operating expenses increased 8% year-over-year to $154 million.
- Diluted adjusted operating EPS increased 10% to $5.46.
- Investment and Savings Product (ISP) segment revenues increased 14% to $298 million with pretax income up 6% to $79 million.
- Mortgage business showed strong growth with U.S. closed loan volume up 33% and Canadian referral volume up 30%.
- Term Life segment revenues rose 3% to $442 million with pretax income up 5% to $155 million.
- Total sales in ISP segment grew 15% to $3.5 billion, with net inflows of $487 million versus $227 million prior year.
Explore Similar Insights
- Adjusted EPS of $0.51, up $0.06 from the prior quarter, with adjusted return on tangible common equity increasing by 135 basis points to 15%.
- Adjusted expenses increased by $45 million, primarily due to higher personnel costs, project expenses, technology, risk, and a $20 million contribution to the First Horizon Foundation.
- Common Equity Tier 1 (CET1) capital ratio remained flat at 11%, with a near-term target of 10.75% following annual stress testing.
- Deposit balances decreased by $52 million, driven by a $652 million decline in brokered CDs, offset by growth in index and promotional deposits and a $131 million increase in noninterest-bearing deposits.
- Fee income increased by $26 million excluding deferred compensation, driven by higher fixed income fees and mortgage servicing rights sales.
- Loan balances were slightly down, with mortgage company loans decreasing seasonally by $132 million, while C&I loans grew by $174 million quarter-over-quarter.
- Net charge-offs decreased by $7 million to $26 million, with a net charge-off ratio of 17 basis points and a loan loss provision credit of $5 million.
- Net interest income grew by $33 million with a 15 basis point expansion in net interest margin to 3.55%, aided by loan balance growth and Main Street lending accretion.
- Adjusted EPS increased 166% year over year to $1.15 per share in Q3 2025.
- Adjusted net revenue was $2.2 billion, up 3% year over year; 9% growth excluding credit card sale.
- CET1 ratio stood at 10.1%, representing $4.5 billion excess capital above regulatory minimum.
- Core ROTCE was 15% headline, approximately 12% excluding AOCI impact.
- Net interest margin (NIM) excluding core OID expanded 10 basis points quarter over quarter to 3.55%.
- Noninterest expense was $1.2 billion, slightly up year over year but down sequentially by $22 million.
- Provision expense declined 36% year over year to $415 million, driven by credit normalization.
- Retail auto net charge-off rate improved 36 basis points year over year to 1.88%, despite a 13 basis point sequential increase due to seasonality.
- Adjusted EBITDA was $179 million with a margin of 50.8%, slightly above guidance due to positive asset mix and annual fee realization.
- Adjusted net income was $133 million or $1.57 per diluted share, a 15% increase in EPS from the prior quarter.
- GAAP operating margin was 26.8%, impacted by $53 million in acquisition-related restructuring and integration costs.
- Net leverage ratio improved to 1.2x, the lowest since IPO, and debt-to-equity ratio improved to 0.39.
- Revenue rose 60% from the prior quarter to $351.2 million, driven by the acquisition of Pioneer Investments.
- The Board increased the share repurchase authorization from $200 million to $500 million, the largest in company history.
- Total client assets increased by 76% quarter-over-quarter to over $300 billion, a record high for a quarter end.
- Adjusted noninterest expense increased 4% linked quarter, mainly due to salaries and benefits.
- Adjusted noninterest income increased 5% linked quarter, driven by mortgage, card, ATM fees, and wealth management.
- Average deposits grew organically by more than 30% over the last 5 years, with growth in consumer checking, small business, and wealth management accounts.
- Average loans remained stable, but ending loans grew in consumer and corporate banking.
- Capital markets revenue grew at a 14% compounded annual growth rate since 2019.
- Common equity Tier 1 ratio was 10.7%, with $144 million in share repurchases and $224 million in dividends paid during the quarter.
- Net interest income increased 5% linked quarter, with expected full year growth of 3% to 5%.
- Pretax pre-provision income increased 14% year-over-year to $832 million.
- Provision expense was $13 million over net charge-offs; asset quality metrics improved with net charge-offs at 47 basis points.
- Reported strong quarterly earnings of $534 million, with adjusted earnings of $538 million or $0.60 per share.
- Return on tangible common equity was 19%, highest among peers for the last 4 years.
- Treasury management revenue increased 8% year-to-date, and wealth management fee income reached a record quarter.
- Business Insurance saw 8% written premium growth with an underlying combined ratio of 88; Small Business delivered 9% premium growth and an 89 combined ratio.
- Catastrophe losses were $212 million before tax, representing 4.9 combined ratio points, primarily from tornado, wind, and hail events, with CAT losses below market share.
- Employee Benefits achieved a core earnings margin of 9.2%, driven by strong life and disability results, with persistency in the low 90s and flat fully insured premium growth.
- Expense ratios improved across Business Insurance and Personal Insurance, driven by operating leverage and higher earned premiums.
- Net investment income increased to $664 million, with a portfolio yield of 4.6% before tax, and limited partnership returns expected to improve in the second half of the year.
- Personal Insurance improved with a combined ratio of 88, auto combined ratio improved by 9.7 points to 95.2, and homeowners combined ratio was 72.7 with 17% written premium growth.
- The Hartford reported outstanding second quarter 2025 results with core earnings nearly $1 billion and a trailing 12-month core earnings ROE of 17%.
- Compensation, general, administrative, and servicing expenses were marginally lower, with transaction expenses down by $5 million.
- Earnings available for distribution were $32.1 million or $0.39 per share, and economic net interest income was $69 million.
- Economic return on GAAP book value was 0.5% for the quarter and 9.8% year-to-date; economic net interest income return on average equity was 10.5%.
- GAAP net income for Q2 2025 was $14 million or $0.17 per share, with GAAP book value at $20.91 per share.
- Total leverage was 4.5:1, with recourse leverage at 1.8:1, increased due to higher investments in agency securities.
- Yield on average interest-earning assets was 6%, average cost of funds was 4.5%, resulting in a net interest spread of 1.5%.
Dafinchi