- Allowance for credit losses on loans was $83.2 million or 1.14% of loans, down 1 basis point from Q1.
- Annualized ROAA was 1.01% and ROATCE was 12.16%.
- During the quarter, 791,000 shares were repurchased at an average price of $26.08.
- Excluding purchase accounting accretion, net interest income was $93.1 million and margin was 3.95%, down slightly from 3.97%.
- Net interest income was $98.3 million, slightly down from $99.3 million in Q1, with net interest margin at 4.18% versus 4.2% in Q1.
- Non-interest expense was flat at approximately $70 million, better than planned.
- Non-interest income was $5.8 million, up from $5.5 million, boosted by Federal Reserve Bank dividend income from new Fed membership.
- Provision for credit losses was $1.1 million, driven by increased allowance for unfunded commitments and minimal net charge-offs.
- Stellar Bank reported Q2 2025 net income of $26.4 million or $0.51 per diluted share, up from $24.7 million or $0.46 per share in Q1.
- Tangible book value increased 10.8% year-over-year from $18 to $19.94 per share after dividends and share repurchases.
- Total risk-based capital was 15.98%, stable from 15.97% in Q1.
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- AXIS delivered an annualized operating return on equity of 19% in Q2 2025, with record diluted book value per common share of $70.34, up 18.6% year-over-year.
- Catastrophe losses were $37 million, primarily from severe convective storms in the U.S., with a cat loss ratio of 2.6%.
- G&A ratio was 11.6%, slightly up from 11.4% a year ago due to severance and IT investments.
- Insurance segment gross premiums written were $1.9 billion, a 7% increase year-over-year, with an overall combined ratio of 85.3%.
- Investment income was strong at $187 million, benefiting from FX and a market yield of 5% above the 4.6% book yield.
- Net income available to common shareholders was $216 million or $2.72 per diluted common share; operating income was $261 million or $3.29 per diluted common share.
- Operating earnings per share reached an all-time high of $3.29, a 12% increase over the prior year quarter.
- Record second quarter premiums totaled $2.5 billion, including $732 million in new business, with a combined ratio of 88.9%.
- Reinsurance segment gross premiums were down 6.8%, with a combined ratio of 92% and underwriting income of $38 million.
- Reserve releases totaled $20 million from short-tail lines, split between insurance and reinsurance.
- Consolidated operating income for Q2 2025 was $1.1 billion, up from $410 million in Q2 2024, driven largely by unrealized gains on the equity portfolio.
- Expense ratio increased to 36.3% from 34.5% due to severance, professional fees, and controllable expense increases, with a commitment to reduce controllable expenses over time.
- Favorable reserve development of 6 points was reported in the first half of 2025 despite reserve strengthening in runoff lines.
- Gross written premiums in Markel Insurance were down 2% in Q2 2025 but net earned premiums were up 3%, reflecting underwriting actions to improve profitability.
- Investments operating income rose to $822 million in Q2 2025 from $100 million a year ago, with a 5.4% return on the equity portfolio and $597 million in mark-to-market gains.
- Markel Group shares have compounded at an annual growth rate of over 16% over the last 5 years.
- Markel Insurance combined ratio was 96.9% in Q2 2025 versus 93.8% a year ago, impacted by adverse development in discontinued product lines and runoff businesses.
- Markel Insurance operating income declined to $128 million in Q2 2025 from $177 million a year ago due to less favorable prior year loss development and a higher expense ratio.
- Markel Ventures funded all capital expenditures internally and generated cash for share repurchases and other uses.
- Markel Ventures revenues increased 7% to $1.55 billion in Q2 2025, with operating income up 17% to $208 million, driven by acquisitions and growth in construction services.
- Net investment income was $228 million in Q2 2025, slightly up from $220 million in Q2 2024, with fixed income yields improving but moderated by lower short-term interest rates.
- Commission revenue increased by 27% year-over-year to a record $516 million, with an additional $15 million in commission revenue lost due to the SEC fee rate reduction to zero mid-quarter.
- Customer credit balances rose 34% to a record $144 billion, and client equity increased 34% to $604 billion, outperforming the S&P 500's 11% quarterly gain.
- Dividend was increased from $1 per year to $1.28, adjusted for the four-for-one stock split completed in June.
- Execution, clearing, and distribution costs rose only 1% despite higher volumes, maintaining a gross transactional profit margin of 82%.
- Expenses were well controlled with a 5% staff increase and compensation expense ratio steady at 11% of adjusted net revenues.
- Net interest income reached a quarterly record of $860 million, including a one-time $26 million tax credit; adjusted net interest income was $834 million.
- Pretax income exceeded $1 billion for the third consecutive quarter, with a pretax profit margin of 75%, a record for the company.
- Total assets grew 33% year-over-year to $181 billion, driven by higher segregated cash balances and margin lending.
- Adjusted EBITDA grew 5%, exceeding the top end of the outlook, with margins improving 200 basis points sequentially.
- Adjusted EPS was $1.36, meeting expectations despite higher depreciation and amortization expenses.
- Banking EBITDA margin contracted 70 basis points due to an $8 million bad debt charge; Capital Markets margin contracted 50 basis points due to acquisition-related dilution.
- Banking revenue grew 6%, above the high end of guidance, driven by commercial excellence and strong client retention.
- Capital Markets revenue grew 5%, slightly below expectations due to temporary slowdown in loan syndication activity.
- FIS delivered 5% revenue growth in Q2 2025, accelerating from 4% in Q1, driven primarily by momentum in the Banking segment.
- Free cash flow was $292 million with a cash conversion rate of 52% in Q2, and 61% year-to-date, improving from 53% prior year.
- Leverage increased modestly to 3x, or 2.9x excluding currency impacts, with a long-term target of 2.8x.
- Recurring revenue represented 81% of total revenue, growing 6% overall with 7% growth in Banking recurring revenue.
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