- Common equity Tier 1 ratio increased, loan-to-deposit ratio remained flat at 81%, and tangible book value per common share grew over 3% to $35.13.
- Expenses increased modestly by $2.1 million due to investments in human capital and technology, maintaining an efficiency ratio of 45.4%.
- Net interest income increased by $9 million, while net interest margin decreased 4 basis points to 3.44%, influenced by deposit mix shifts and higher cash balances.
- Non-interest income rose by $3 million, driven by deposit service fees and lower credit valuation adjustment impact.
- Non-performing assets decreased 5%, and commercial classified loans declined 4%, indicating improving asset quality.
- Provision for credit losses decreased by $31 million to $47 million, with net charge-offs at $36 million and allowance for loan losses at $722 million (1.35% of loans).
- Return on tangible common equity was 18%, ROAA nearly 1.3%, with over 1% linked quarter growth in loans and deposits.
- Revenue grew 1.6% over the prior quarter, with net income to common shareholders up $31 million and EPS increasing to $1.52 from $1.30.
Explore Similar Insights
- 30-plus delinquency was 5.07%, down 29 basis points year-over-year.
- Capital generation was $222 million, up 63% year-over-year.
- C&I adjusted earnings were $1.45 per share, up 42%.
- C&I net charge-offs were 7.6%, down 60 basis points from last quarter and down 88 basis points year-over-year.
- Consumer loan net charge-offs were 7.2%, down 64 basis points from last quarter and down 110 basis points year-over-year.
- Consumer loan yield was 22.6%, up 19 basis points from the first quarter and up 67 basis points year-over-year.
- GAAP net income was $167 million or $1.40 per diluted share, up 137% from $0.59 per diluted share in Q2 2024.
- Interest income grew 10% year-over-year driven by receivables growth and yield improvement.
- Managed receivables ended the quarter at $25.2 billion, up 7% from a year ago.
- Net leverage at the end of Q2 was 5.5x, flat to last quarter.
- Operating expenses were $415 million, up 11% compared to a year ago.
- Originations grew 9%, driven by expanded use of granular data and product innovations.
- Total revenue grew 10% and receivables grew 7% year-over-year, crossing the $25 billion mark for the first time.
- Adjusted net debt to annualized adjusted EBITDAre was 4.6x, down from 4.7x last quarter and within the targeted leverage range of 4.5 to 5.5x.
- Adjusted net debt was $713.8 million with a weighted average debt maturity of 3.8 years and weighted average interest rate of 4.58%.
- Core FFO was $25.6 million or $0.31 per diluted share and AFFO was $27.5 million or $0.33 per diluted share, a 3.1% increase year-over-year.
- NETSTREIT reported net income of $3.3 million or $0.04 per diluted share for Q2 2025.
- Total liquidity at quarter end was $594 million, including $20 million cash, $373 million available on revolving credit, and $202 million unsettled forward equity.
- Total recurring G&A increased to $5.4 million but represented 11% of total revenues, down from 12% the prior year.
- Allowance for credit losses was 1.06% of loans; capital ratios remained strong with CET1 at 10.63% and total capital ratio at 14.39%.
- Deposits grew 1.7% driven by new commercial accounts and branch contributions; noninterest-bearing demand deposits rose over 7% year-over-year, representing 31.3% of total deposits.
- Efficiency ratio held steady at 55.7% despite a 3.9% increase in noninterest expenses, including higher salaries and advertising due to branch expansion.
- Net charge-offs were $11.4 million, including an $8.6 million charge-off on a syndicated commercial real estate loan; excluding this, charge-offs were 18 basis points annualized.
- Net income for Q2 2025 was $15.1 million or $0.50 per diluted share, down from $17.7 million and $0.58 in Q1, primarily due to increased credit loss expense.
- Net interest margin increased by 5 basis points to 3.07%, helped by lower funding costs and loan volume growth.
- Pre-provision net revenues grew 3.7% quarter-over-quarter to $57.1 million, driven by higher net interest income and noninterest income.
- Return on average assets was 0.79% and return on average equity was 7.8%.
- Total loans increased by 0.4% linked-quarter or 1.6% annualized to $6.31 billion, with growth in C&I and residential mortgage loans.
- Adjusted earnings per share for Q2 2025 was $1.14, a 56% increase over Q2 2024.
- Adjusted expenses increased 5% year-over-year due to investments in growth and efficiency initiatives.
- Bank lending balances increased 19% year-over-year, with pledged asset line balances reaching a record $21 billion.
- Capital return included $5.3 billion through dividends, preferred stock redemption, and stock repurchases totaling $1.85 billion year-to-date.
- Client trading volumes increased 38% year-over-year to 7.6 million daily average trades in Q2.
- Core net new assets reached $218 billion in the first half of 2025, up 39% year-over-year.
- High-cost bank borrowings were reduced by over 70% from peak to $27.7 billion as of June 30, 2025.
- Net interest revenue increased 31% year-over-year driven by reduction in high-cost borrowings and increased securities lending.
- Second quarter revenue was $5.9 billion, a 25% increase year-over-year.
Dafinchi