Adjusted noninterest expenses grew modestly due to merit-based salary increases and higher incentive accruals, but efficiency ratio improved to 55.2%.
Asset quality remained stable with nonaccrual loans steady and accruing past dues increasing slightly due to a few specific credits that are resolving.
Core customer deposits grew by $600 million in the quarter, driven by commercial noninterest-bearing deposits and promotional CDs.
Net interest margin expanded for the fifth consecutive quarter due to asset repricing and disciplined deposit cost management.
Noninterest income grew strongly, supported by capital markets activity, FX and syndication fees, and treasury platform penetration.
Profitability ratios such as return on average assets and return on tangible shareholders' equity improved and are on track to meet full year guidance.
Sequential growth was driven by solid momentum in net interest income, noninterest income, and a lower loan loss provision.
Tangible book value increased due to retained earnings and favorable OCI from securities portfolio; regulatory capital ratios remain strong.
Valley National Bancorp reported Q2 2025 net income of $133 million or $0.22 per diluted share and adjusted net income of $134 million or $0.23 per share, up from $106 million and $0.18 per share in the prior quarter.
Commercial lending loan portfolio grew by $946 million to $15.5 billion, with $1.9 billion in loan originations and $1.3 billion funded during the quarter.
Liquidity stood at $1.1 billion post-quarter with $9.3 billion of credit availability and an adjusted debt to undepreciated equity ratio of 2.5x.
Starwood Property Trust reported distributable earnings (DE) of $151 million or $0.43 per share for Q2 2025, with GAAP net income at $130 million or $0.38 per share.
The company committed $3.2 billion towards new investments in the quarter, including $1.9 billion in commercial lending and $700 million in infrastructure lending, surpassing the full year 2024 capital deployment with $5.5 billion in the first half of 2025.
The infrastructure lending portfolio reached a record $3.1 billion with $642 million funded in the quarter and repayments of $288 million.
The Property segment contributed $17 million of DE, driven by the Woodstar affordable multifamily portfolio with partial impact from new HUD rent increases.
A $37.7 million pretax gain on prior investments, including $29.4 million from Voyager Technologies, contributed to strong results.
Average loans increased 12.7% to $36.4 billion and average deposits increased 10.7% to $55.6 billion, reflecting organic growth and Heartland acquisition impact.
CET1 capital ratio increased 28 basis points to 10.39% following a $294 million Series B preferred stock offering and redemption of $115 million Series A preferred stock.
Excluding acquisition and nonrecurring items, net operating income was $225.4 million or $2.96 per share.
Legacy UMB average loan balances increased 15.3% annualized, outpacing peer banks' median 5.2% increase.
Net charge-offs for legacy UMB were $9 million or 13 basis points; total net charge-offs including acquired loans were 17 basis points.
Nonperforming loans to total loans improved 2 basis points to 26 basis points; legacy UMB NPLs were 10 basis points compared to peer median of 0.50%.
UMB Financial reported net income available for common shareholders of $215.4 million in Q2 2025, including $13.5 million of acquisition expenses.
Dafinchi