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W. R. Berkley Corporation Reports Second Quarter 2025 Results
GREENWICH, Conn.--(BUSINESS WIRE)-- W. R. Berkley Corporation (NYSE: WRB) today reported its second quarter 2025 results. (1) Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses) and related expenses and after-tax net foreign currency gains (losses). Commencing with this quarter, the Company's 2024 financial information has been restated to exclude after-tax net foreign currency gains (losses) from operating income to conform with this presentation. (2) Return on equity and operating return on equity represent net income and operating income, respectively, expressed on an annualized basis as a percentage of beginning of year common stockholders' equity. Expand Second quarter highlights included: Return on equity of 19.1% and operating return on equity of 20.0%. Record net premiums written grew to $3.4 billion. The current accident year combined ratio before catastrophe losses of 3.2 loss ratio points was 88.4%. The reported combined ratio was 91.6%, including current accident year catastrophe losses of $99.2 million. Average rate increases excluding workers' compensation were approximately 7.6%. Record net investment income of $379.3 million. Book value per share grew 6.8% in the quarter, before dividends. Total capital returned to shareholders was $223.8 million, consisting of $189.7 million of special dividends and $34.1 million of ordinary dividends. Record common stockholders' equity of $9.3 billion. The Company commented: Our strong performance continued into the second quarter of 2025, with an annualized return on beginning-of-year common stockholders' equity of 19.1%. Net income grew year-over-year, driven by higher underwriting gains and improved investment income, notwithstanding above-average industry catastrophe losses during the quarter. Book value per share grew 6.8%, before $223.8 million of capital returned to shareholders through special and ordinary dividends. Our focus on business with the highest margin potential resulted in record quarterly net premiums written of $3.4 billion. Net investment income rose both year-over-year and sequentially to a quarterly record, fueled by higher yields on our expanding domestic fixed-maturity portfolio. The strength of our operating cash flow continues to drive growth in net investable assets, and our current new money rates remain comfortably above our average book yield, positioning us well for further investment income growth. We continue to carefully manage the underwriting cycle in each market served by our specialized businesses. This disciplined approach has supported superior long-term, risk-adjusted returns and consistently lower volatility over decades. We remain confident in our ability to deliver exceptional value to shareholders throughout the remainder of 2025 and well into the future. Webcast Conference Call The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on July 21, 2025, at 5:00 p.m. eastern time. The conference call will be webcast live on the Company's website at Please log on early to register. A replay of the webcast will be available on the Company's website approximately two hours after the end of the conference call. Additional financial information can be found on the Company's website at About W. R. Berkley Corporation Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty business: Insurance and Reinsurance & Monoline Excess. Forward Looking Information This is a 'Safe Harbor' Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2025 and beyond, are based upon the Company's historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: the cyclical nature of the property casualty industry; the impact of significant competition, including new entrants to the industry; the long-tail and potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, foreign governmental bonds, municipal bonds, mortgage-backed securities, loans receivable, investment funds, including real estate, merger arbitrage, energy-related and private equity investments; the effects of emerging claim and coverage issues; the uncertain nature of damage theories and loss amounts, including claims for cybersecurity-related risks; natural and man-made catastrophic losses, including as a result of terrorist activities; the impact of climate change, which may alter the frequency and increase the severity of catastrophe events; general economic and market activities, including inflation, the risk of recession, changing interest rates, the impact of tariffs and volatility in the credit and capital markets; the impact of the conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response, on our results and financial condition; cyber security breaches of our information technology systems and the information technology systems of our vendors and other third parties; the use of artificial intelligence technologies by us or third-parties on which we rely could expose us to technological, security, legal, and other risks; the risk of future pandemics, as well as continuing effects of the COVID-19 pandemic; foreign currency and political risks relating to our international operations; our ability to attract and retain key personnel and qualified employees; continued availability of capital and financing; the success of our new ventures or acquisitions and the availability of other opportunities; the availability of reinsurance; our retention under the Terrorism Risk Insurance Program Reauthorization Act of 2019; the ability or willingness of our reinsurers to pay reinsurance recoverables owed to us; other legislative and regulatory developments, including those related to business practices in the insurance industry; credit risk related to our policyholders, independent agents and brokers; changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies; the availability of dividends from our insurance company subsidiaries; the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties could cause our actual results for the year 2025 and beyond to differ materially from those expressed in any forward-looking statement we make. Any projections of growth in our revenues would not necessarily result in commensurate levels of earnings. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. (1) Basic shares outstanding consist of the weighted average number of common shares outstanding during the period (including shares held in a grantor trust). Diluted shares outstanding consist of the weighted average number of basic and common equivalent shares outstanding during the period. Expand Business Segment Operating Results (Amounts in thousands, except ratios) (1) Second Quarter Six Months 2025 2024 2025 2024 Insurance: Gross premiums written $ 3,606,887 $ 3,360,850 $ 6,823,840 $ 6,281,900 Net premiums written 3,013,703 2,810,448 5,708,158 5,256,163 Net premiums earned 2,728,784 2,484,569 5,371,291 4,883,338 Pre-tax income 512,672 490,053 1,022,177 968,202 Loss ratio 63.8 % 64.0 % 63.9 % 62.9 % Expense ratio 28.3 % 28.4 % 28.0 % 28.4 % GAAP Combined ratio 92.1 % 92.4 % 91.9 % 91.3 % Reinsurance & Monoline Excess: Gross premiums written $ 370,882 $ 356,922 $ 837,868 $ 798,628 Net premiums written 337,736 316,331 776,584 721,907 Net premiums earned 369,401 361,846 739,275 727,424 Pre-tax income 127,299 124,449 247,679 252,074 Loss ratio 57.7 % 52.8 % 57.7 % 51.3 % Expense ratio 29.7 % 29.0 % 28.7 % 29.4 % GAAP Combined ratio 87.4 % 81.8 % 86.4 % 80.7 % Corporate and Eliminations: Net investment gains (losses) $ 30,973 $ (58,512 ) $ 47,328 $ (32,733 ) Interest expense (31,777 ) (31,708 ) (63,504 ) (63,436 ) Other expenses (117,304 ) (36,609 ) (193,211 ) (62,363 ) Pre-tax loss (118,108 ) (126,829 ) (209,387 ) (158,532 ) Consolidated: Gross premiums written $ 3,977,769 $ 3,717,772 $ 7,661,708 $ 7,080,528 Net premiums written 3,351,439 3,126,779 6,484,742 5,978,070 Net premiums earned 3,098,185 2,846,415 6,110,566 5,610,762 Pre-tax income 521,863 487,673 1,060,469 1,061,744 Loss ratio 63.1 % 62.6 % 63.1 % 61.4 % Expense ratio 28.5 % 28.5 % 28.2 % 28.6 % GAAP Combined ratio 91.6 % 91.1 % 91.3 % 90.0 % Expand (1) Loss ratio is losses and loss expenses incurred expressed as a percentage of premiums earned. Expense ratio is underwriting expenses expressed as a percentage of premiums earned. GAAP combined ratio is the sum of the loss ratio and the expense ratio. Expand Supplemental Information (Amounts in thousands) Second Quarter Six Months 2025 2024 2025 2024 Net premiums written: Other liability $ 1,218,988 $ 1,131,676 $ 2,327,253 $ 2,147,291 Short-tail lines (1) 706,298 643,101 1,306,490 1,175,442 Auto 448,678 408,178 837,832 756,760 Workers' compensation 340,891 332,432 681,498 637,064 Professional liability 298,848 295,061 555,085 539,606 Total Insurance 3,013,703 2,810,448 5,708,158 5,256,163 Casualty (2) 188,929 188,117 375,718 378,136 Property (2) 115,926 102,158 248,084 200,820 Monoline excess 32,881 26,056 152,782 142,951 Total Reinsurance & Monoline Excess 337,736 316,331 776,584 721,907 Current accident year losses from catastrophes: Insurance $ 77,631 $ 86,632 $ 148,248 $ 114,082 Reinsurance & Monoline Excess 21,603 3,047 62,094 6,103 Total $ 99,234 $ 89,679 $ 210,342 $ 120,185 Net Investment income: Core portfolio (3) $ 328,363 $ 329,971 $ 645,303 $ 661,147 Investment funds 27,268 25,476 54,291 (3,873 ) Arbitrage trading account 23,672 16,682 40,001 34,693 Total $ 379,303 $ 372,129 $ 739,595 $ 691,967 Net realized and unrealized gains (losses) on investments: Change in unrealized gains (losses) on equity securities 63,630 (66,717 ) 83,577 (40,905 ) Other operating costs and expenses: Policy acquisition and insurance operating expenses $ 882,099 $ 811,997 $ 1,720,345 $ 1,603,529 Insurance service expenses 24,287 23,084 47,534 44,523 Net foreign currency losses (gains) 55,396 (10,118 ) 74,774 (23,295 ) Other costs and expenses 77,525 67,972 146,564 136,767 Total $ 1,039,307 $ 892,935 $ 1,989,217 $ 1,761,524 Reconciliation of net income to operating income (4): Net income $ 401,288 $ 371,909 $ 818,860 $ 814,380 Pre-tax investment (gains) losses, net of related expenses (30,973 ) 58,631 (47,328 ) 32,733 Pre-tax net foreign currency losses (gains) 55,396 (10,118 ) 74,774 (23,295 ) Income tax benefit (5,225 ) (10,251 ) (5,864 ) (760 ) Operating income after-tax $ 420,486 $ 410,171 $ 840,442 $ 823,058 Expand (1) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery, high net worth homeowners and other lines. (2) Includes reinsurance casualty and property and certain program management business. (3) Core portfolio includes fixed maturity securities, equity securities, cash and cash equivalents, real estate and loans receivable. (4) Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses) and after-tax net foreign currency gains (losses). Net investment gains (losses) are computed net of related expenses, including performance-based compensatory costs associated with realized investment gains. Commencing with this quarter, the Company's 2024 financial information has been restated to exclude after-tax net foreign currency gains (losses) from operating income to conform with this presentation. Management believes this measurement provides a useful indicator of trends in the Company's underlying operations. Expand Selected Balance Sheet Information (Amounts in thousands, except per share data) June 30, 2025 December 31, 2024 Net invested assets (1) $ 31,577,384 $ 29,780,638 Total assets 42,658,057 40,448,635 Reserves for losses and loss expenses 21,496,123 20,368,030 Senior notes and other debt 1,831,638 1,831,158 Subordinated debentures 1,010,168 1,009,808 Common stockholders' equity (2) 9,294,537 8,395,111 Common stock outstanding (3) 379,385 380,066 Book value per share (4) 24.50 22.09 Tangible book value per share (4) 23.88 21.46 Expand (1) Net invested assets include investments, cash and cash equivalents, trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases. (2) As of June 30, 2025, reflected in common stockholders' equity are after-tax unrealized investment losses of $249 million and unrealized currency translation losses of $324 million. As of December 31, 2024, reflected in common stockholders' equity are after-tax unrealized investment losses of $517 million and unrealized currency translation losses of $417 million. (3) During the six months ended June 30, 2025, the Company repurchased 850,000 shares of its common stock for $49.2 million. During the three months ended June 30, 2025, the Company did not repurchase any shares of its common stock. The number of shares of common stock outstanding excludes shares held in a grantor trust. (4) Book value per share is total common stockholders' equity divided by the number of common shares outstanding. Tangible book value per share is total common stockholders' equity excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding. Expand Investment Portfolio (Amounts in thousands, except percentages) Percent of Total Fixed maturity securities: United States government and government agencies $ 3,101,062 9.8 % State and municipal: Special revenue 1,353,385 4.3 % State general obligation 284,130 0.9 % Local general obligation 275,378 0.9 % Corporate backed 184,200 0.6 % Pre-refunded 77,477 0.2 % Total state and municipal 2,174,570 6.9 % Mortgage-backed securities: Agency 3,787,350 12.0 % Commercial 359,500 1.1 % Residential - Prime 181,086 0.6 % Residential - Alt A 1,723 0.0 % Total mortgage-backed securities 4,329,659 13.7 % Asset-backed securities 3,853,435 12.2 % Corporate: Industrial 3,672,546 11.6 % Financial 3,452,175 11.0 % Utilities 1,151,418 3.6 % Other 482,637 1.5 % Total corporate 8,758,776 27.7 % Foreign government 1,875,654 6.0 % Total fixed maturity securities (1) 24,093,156 76.3 % Equity securities available for sale: Common stocks 719,570 2.3 % Preferred stocks 542,622 1.7 % Total equity securities available for sale 1,262,192 4.0 % Cash and cash equivalents (2) 2,076,351 6.6 % Investment funds 1,492,258 4.7 % Real estate 1,294,505 4.1 % Arbitrage trading account 1,034,557 3.3 % Loans receivable 324,365 1.0 % Net invested assets $ 31,577,384 100.0 % Expand (1) Total fixed maturity securities had an average rating of AA- and an average duration of 2.8 years, including cash and cash equivalents. (2) Cash and cash equivalents includes trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases. Expand
Business Wire
2 hours ago
- Business
- Business Wire
ServisFirst Bancshares, Inc. Announces Results for Second Quarter of 2025
BIRMINGHAM, Ala.--(BUSINESS WIRE)--ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended June 30, 2025. Second Quarter 2025 Highlights: Diluted earnings per share of $1.12 for the quarter. Adjusted diluted earnings per share of $1.21, up 27% from the second quarter of 2024. Net interest margin improved to 3.10% in the second quarter from 2.92% in the first quarter. Adjusted net interest margin was 3.06% in the second quarter. Loans grew by $346 million, or 11% annualized, during the quarter. Book value per share of $31.52, up 14% from the second quarter of 2024 and 16% annualized, from the first quarter of 2025. Liquidity remains strong with $1.7 billion in cash and cash equivalent assets, 10% of our total assets, and no FHLB advances or brokered deposits. Consolidated common equity tier 1 capital to risk-weighted assets increased from 10.93% to 11.38% year-over-year. Return on average common stockholder's equity of 14.56%. Adjusted return on average common stockholders' equity increased from 14.08% to 15.63% year-over-year. Tom Broughton, Chairman, President, and CEO, said, 'We were pleased with the loan growth in the quarter, combined with the improved environment for banks like ServisFirst.' David Sparacio, CFO, said, 'The net interest margin continues to improve and we see continued asset repricing, which we believe will lead to higher net interest margins over the next 24 months.' * This press release includes certain non-GAAP financial measures: adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted net interest margin, adjusted return on average assets, adjusted return on average common stockholders' equity, adjusted efficiency ratio, tangible common stockholders' equity, total tangible assets, tangible book value per share, and tangible common equity to total tangible assets. Please see 'GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.' FINANCIAL SUMMARY (UNAUDITED) (in Thousands except share and per share amounts) Period Ending June Period Ending March 31, 2025 % Change From Period Ending March 31, 2025 to Period Ending June 30, 2025 Period Ending June 30, 2024 % Change From Period Ending June 30, 2024 to Period Ending June 30, 2025 QUARTERLY OPERATING RESULTS Net Income $ 61,424 $ 63,224 (2.8 )% $ 52,136 17.8 % Net Income Available to Common Stockholders $ 61,393 $ 63,224 (2.9 )% $ 52,105 17.8 % Diluted Earnings Per Share $ 1.12 $ 1.16 (3.4 )% $ 0.95 17.9 % Return on Average Assets 1.40 % 1.45 % 1.34 % Return on Average Common Stockholders' Equity 14.56 % 15.63 % 14.08 % Average Diluted Shares Outstanding 54,664,480 54,656,630 54,608,679 Adjusted Net Income, net of tax* $ 66,133 $ 63,224 4.6 % $ 52,136 26.8 % Adjusted Net Income Available to Common Stockholders, net of tax* $ 66,102 $ 63,224 4.6 % $ 52,105 26.9 % Adjusted Diluted Earnings Per Share, net of tax* $ 1.21 $ 1.16 4.4 % $ 0.95 27.5 % Adjusted Return on Average Assets, net of tax* 1.50 % 1.45 % 1.34 % Adjusted Return on Average Common Stockholders' Equity, net of tax* 15.68 % 15.63 % 14.08 % YEAR-TO-DATE OPERATING RESULTS Net Income $ 124,648 $ 102,162 22.0 % Net Income Available to Common Stockholders $ 124,617 $ 102,131 22.0 % Diluted Earnings Per Share $ 2.28 $ 1.87 21.9 % Return on Average Assets 1.42 % 1.30 % Return on Average Common Stockholders' Equity 15.08 % 13.96 % Average Diluted Shares Outstanding 54,660,577 54,602,032 Adjusted Net Income, net of tax* $ 129,357 $ 103,509 25.0 % Adjusted Net Income Available to Common Stockholders, net of tax* $ 129,326 $ 103,478 25.0 % Adjusted Diluted Earnings Per Share, net of tax* $ 2.36 $ 1.89 Adjusted Return on Average Assets, net of tax* 1.48 % 1.31 % Adjusted Return on Average Common Stockholders' Equity, net of tax* 15.65 % 14.15 % BALANCE SHEET Total Assets $ 17,378,628 $ 18,636,766 (6.8 )% $ 16,049,812 8.3 % Loans 13,232,560 12,886,831 2.7 % 12,332,780 7.3 % Non-interest-bearing Demand Deposits 2,632,058 2,647,577 (0.6 )% 2,475,415 6.3 % Total Deposits 13,862,319 14,429,061 (3.9 )% 13,259,392 4.5 % Stockholders' Equity 1,721,783 1,668,900 3.2 % 1,510,576 14.0 % Expand DETAILED FINANCIALS ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $61.4 million for the quarter ended June 30, 2025, compared to net income and net income available to common stockholders of $63.2 million for the first quarter of 2025 and net income and net income available to common stockholders of $52.1 million for the second quarter of 2024. Basic and diluted earnings per common share were both $1.12 in the second quarter of 2025, compared to $1.16 for both in the first quarter of 2025 and $0.96 and $0.95, respectively, in the second quarter of 2024. Annualized return on average assets was 1.40% and annualized return on average common stockholders' equity was 14.56% for the second quarter of 2025, compared to 1.34% and 14.08%, respectively, for the second quarter of 2024. Net interest income was $131.7 million for the second quarter of 2025, compared to $123.6 million for the first quarter of 2025 and $105.9 million for the second quarter of 2024. The net interest margin in the second quarter of 2025 was 3.10% compared to 2.92% in the first quarter of 2025 and 2.79% in the second quarter of 2024. Loan yields were 6.37% during the second quarter of 2025 compared to 6.28% during the first quarter of 2025 and 6.48% during the second quarter of 2024. Investment yields were 3.37% during the second quarter of 2025 compared to 3.31% during the first quarter of 2025 and 3.33% during the second quarter of 2024. Average interest-bearing deposit rates were 3.33% during the second quarter of 2025, compared to 3.40% during the first quarter of 2025 and 4.09% during the second quarter of 2024. During the quarter, we reversed a $2.3 million accrual related to a legal matter, which had been recorded in interest expense. Average federal funds purchased rates were 4.49% during the second quarter of 2025, compared to 4.50% during the first quarter of 2025 and 5.50% during the second quarter of 2024. Average loans for the second quarter of 2025 were $13.01 billion, an increase of $302.0 million, or 9.5% annualized, from average loans of $12.71 billion for the first quarter of 2025, and an increase of $947.1 million, or 7.9%, from average loans of $12.06 billion for the second quarter of 2024. Ending total loans for the second quarter of 2025 were $13.23 billion, an increase of $345.7 million, or 10.8% annualized, from $12.89 billion for the first quarter of 2025, and an increase of $899.8 million, or 7.3%, from $12.33 billion for the second quarter of 2024. Average total deposits for the second quarter of 2025 were $13.90 billion, an increase of $5.8 million, or 0.2% annualized, from average total deposits of $13.89 billion for the first quarter of 2025, and an increase of $1.03 billion, or 8.0%, from average total deposits of $12.86 billion for the second quarter of 2024. Ending total deposits for the second quarter of 2025 were $13.86 billion, a decrease of $566.7 million, or 15.8% annualized, from $14.43 billion for the first quarter of 2025, and an increase of $602.9 million, or 4.5%, from $13.26 billion for the second quarter of 2024. Non-performing assets to total assets were 0.42% for the second quarter of 2025, compared to 0.40% for the first quarter of 2025 and 0.23% for the second quarter of 2024. The majority of the year-over-year increase in non-performing assets was attributable to two relationships, both of which are secured by real estate. Annualized net charge-offs to average loans were 0.20% for the second quarter of 2025, compared to 0.19% for the first quarter of 2025 and 0.10% for the second quarter of 2024. During the second quarter of 2025, we charged off $4.9 million on a loan that had not been previously impaired. The allowance for credit losses as a percentage of total loans at June 30, 2025, March 31, 2025, and June 30, 2024, was 1.28%, 1.28%, and 1.28%, respectively. We recorded a $11.4 million provision for loan losses in the second quarter of 2025 compared to $6.5 million in the first quarter of 2025, and $5.4 million in the second quarter of 2024. Higher loan growth and increased net charge-offs during the second quarter of 2025 contributed to the increase in provision for loan losses. Non-interest income decreased $8.5 million, or 95.3%, to $421,000 for the second quarter of 2025 from $8.9 million in the second quarter of 2024, and decreased $7.9 million, or 94.9%, on a linked quarter basis. Service charges on deposit accounts increased $378,000, or 16.5%, to $2.7 million for the second quarter of 2025 from $2.3 million in the second quarter of 2024, and increased $113,000, or 4.4%, on a linked quarter basis. Mortgage banking revenue decreased $56,000, or 4.1%, to $1.3 million for the second quarter of 2025 from $1.4 million in the second quarter of 2024, and increased $710,000, or 115.8%, on a linked quarter basis. Net credit card income decreased $214,000, or 9.2%, to $2.1 million for the second quarter of 2025 from $2.3 million in the second quarter of 2024, and increased $151,000, or 7.7%, on a linked quarter basis. In the second quarter of 2025, we recognized an $8.6 million loss on the sale of available-for-sale debt securities as part of a portfolio restructuring. Bank-owned life insurance ('BOLI') income increased $68,000, or 3.3%, to $2.1 million for the second quarter of 2025 from $2.1 million in the second quarter of 2024, and decreased $11,000, or 0.5%, on a linked quarter basis. Other operating income decreased $83,000, or 10.0%, to $745,000 for the second quarter of 2025 from $828,000 in the second quarter of 2024, and decreased $256,000, or 25.6%, on a linked quarter basis. Non-interest expense increased $1.4 million, or 3.2%, to $44.2 million for the second quarter of 2025 from $42.8 million in the second quarter of 2024, and decreased $1.9 million, or 4.1%, on a linked quarter basis. Salary and benefit expense decreased $1.6 million, or 6.8%, to $22.6 million for the second quarter of 2025 from $24.2 million in the second quarter of 2024, and decreased $303,000, or 1.3%, on a linked quarter basis. The number of full-time equivalent ('FTE') employees increased by 34, or 5.44%, to 659 at June 30, 2025 compared to 625 at June 30, 2024, and increased by 23, or 3.61%, from the end of the first quarter of 2025. Equipment and occupancy expense decreased $44,000, or 1.2%, to $3.5 million for the second quarter of 2025 from $3.6 million in the second quarter of 2024, and decreased $199,000, or 5.3%, on a linked quarter basis. Third party processing and other services expense increased $540,000, or 7.2%, to $8.0 million for the second quarter of 2025 from $7.5 million in the second quarter of 2024, and increased $267,000, or 3.5%, on a linked quarter basis. Professional services expense increased $163,000, or 9.4%, to $1.9 million for the second quarter of 2025 from $1.7 million in the second quarter of 2024, and decreased $29,000, or 1.5%, on a linked quarter basis. FDIC and other regulatory assessments increased $551,000, or 25.0%, to $2.8 million for the second quarter of 2025 from $2.2 million in the second quarter of 2024, and decreased $101,000, or 3.5%, on a linked quarter basis. Other operating expenses increased $1.8 million, or 49.5%, to $5.4 million for the second quarter of 2025 from $3.6 million in the second quarter of 2024, and decreased $1.5 million, or 22.0%, on a linked quarter basis. The efficiency ratio was 33.46% during the second quarter of 2025 compared to 37.31% during the second quarter of 2024 and 34.97% during the first quarter of 2025. The adjusted efficiency ratio was 31.94% in the second quarter of 2025. Income tax expense increased $725,000, or 5.0%, to $15.2 million in the second quarter of 2025, compared to $14.5 million in the second quarter of 2024. Our effective tax rate was 19.82% for the second quarter of 2025 compared to 21.71% for the second quarter of 2024. We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the second quarters of 2025 and 2024 of $2.1 million and $396,000, respectively. About ServisFirst Bancshares, Inc. ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Alabama, Florida, Georgia, North and South Carolina, Tennessee, and Virginia. We also operate a loan production office in Florida. Through the ServisFirst Bank, we originate commercial, consumer and other loans and accept deposits, provide electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services and provide correspondent banking services to other financial institutions. ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC). Copies of its filings may be obtained through the SEC's website at or at Statements in this press release that are not historical facts, including, but not limited to, statements concerning future operations, results or performance, are hereby identified as "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. The words 'believe,' 'expect,' 'anticipate,' 'project,' 'plan,' 'intend,' 'will,' 'could,' 'would,' 'might' and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to ServisFirst Bancshares, Inc., are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.'s senior management and involve risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Such forward-looking statements should, therefore, be considered in light of various factors that could affect the accuracy of such forward-looking statements, including, but not limited to: general economic conditions, especially in the credit markets and in the Southeast; the impact of tariffs and trade wars on general economic conditions, the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes as a result of our reclassification as a large financial institution by the FDIC; changes in our loan portfolio and the deposit base; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, the Federal Reserve policies in connection with continued or re-emerging inflationary pressures and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; computer hacking or cyber-attacks resulting in unauthorized access to confidential or proprietary information; substantial, unexpected or prolonged changes in the level or cost of liquidity; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes and tornados, in our geographic markets; and increased competition from both banks and non-bank financial institutions. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to 'Cautionary Note Regarding Forward-looking Statements' and 'Risk Factors' in our most recent Annual Report on Form 10-K, in our Quarterly Reports on Form 10-Q for fiscal year 2025, and our other SEC filings. If one or more of the assumptions forming the basis of our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements that are made from time to time. More information about ServisFirst Bancshares, Inc. may be obtained over the Internet at or by calling (205) 949-0302. CONSOLIDATED STATEMENT OF INCOME Interest income $ 246,635 $ 241,096 $ 243,892 $ 247,979 $ 227,540 Interest expense 114,948 117,543 120,724 132,858 121,665 Net interest income 131,687 123,553 123,168 115,121 105,875 Provision for credit losses 11,296 6,630 5,704 5,659 5,353 Net interest income after provision for credit losses 120,391 116,923 117,464 109,462 100,355 Non-interest income 421 8,277 8,803 8,549 8,891 Non-interest expense 44,204 46,107 46,896 45,632 42,818 Income before income tax 76,608 79,093 79,371 72,379 66,595 Provision for income tax 15,184 15,869 14,198 12,472 14,459 Net income 61,424 63,224 65,173 59,907 52,136 Preferred stock dividends 31 - 31 - 31 Net income available to common stockholders $ 61,393 $ 63,224 $ 65,142 $ 59,907 $ 52,105 Earnings per share - basic $ 1.12 $ 1.16 $ 1.19 $ 1.10 $ 0.96 Earnings per share - diluted $ 1.12 $ 1.16 $ 1.19 $ 1.10 $ 0.95 Average diluted shares outstanding 54,664,480 54,656,630 54,649,808 54,642,582 54,608,679 CONSOLIDATED BALANCE SHEET DATA Total assets $ 17,378,628 $ 18,636,766 $ 17,351,643 $ 16,449,178 $ 16,049,812 Loans 13,232,560 12,886,831 12,605,836 12,338,226 12,332,780 Debt securities 1,914,503 1,905,550 1,876,253 1,867,587 1,941,641 Non-interest-bearing demand deposits 2,632,058 2,647,577 2,619,687 2,576,329 2,475,415 Total deposits 13,862,319 14,429,061 13,543,459 13,146,529 13,259,392 Borrowings 64,747 64,745 64,743 64,741 64,739 Stockholders' equity 1,721,783 1,668,900 1,616,772 1,570,269 1,510,576 Shares outstanding 54,618,545 54,601,217 54,569,427 54,551,543 54,521,479 Book value per share $ 31.52 $ 30.57 $ 29.63 $ 28.79 $ 27.71 Tangible book value per share (1) $ 31.27 $ 30.32 $ 29.38 $ 28.54 $ 27.46 SELECTED FINANCIAL RATIOS (Annualized) Net interest margin 3.10 % 2.92 % 2.96 % 2.84 % 2.79 % Return on average assets 1.40 % 1.45 % 1.52 % 1.43 % 1.34 % Return on average common stockholders' equity 14.56 % 15.63 % 16.29 % 15.55 % 14.08 % Efficiency ratio 33.46 % 34.97 % 35.54 % 36.90 % 37.31 % Non-interest expense to average earning assets 1.04 % 1.09 % 1.13 % 1.13 % 1.13 % CAPITAL RATIOS (2) Common equity tier 1 capital to risk-weighted assets 11.38 % 11.48 % 11.42 % 11.25 % 10.93 % Tier 1 capital to risk-weighted assets 11.38 % 11.48 % 11.42 % 11.25 % 10.93 % Total capital to risk-weighted assets 12.81 % 12.93 % 12.90 % 12.77 % 12.43 % Tier 1 capital to average assets 9.78 % 9.48 % 9.59 % 9.54 % 9.81 % Tangible common equity to total tangible assets (1) 9.84 % 8.89 % 9.25 % 9.47 % 9.33 % (1) This press release contains certain non-GAAP financial measures. Please see 'GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.' (2) Regulatory capital ratios for most recent period are preliminary. Expand GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures This press release contains certain non-GAAP financial measures, including adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders' equity, and adjusted efficiency ratio. We recorded a one-time expense of $7.2 million in the fourth quarter of 2023 associated with the FDIC's special assessment to recapitalize the Deposit Insurance Fund following bank failures in the spring of 2023. This assessment was updated in the first quarter of 2024 resulting in additional expense of $1.8 million. We recognized an $8.6 million loss on sale of available-for-sale debt securities in non-interest income during the second quarter of 2025. We reversed a $2.3 million legal reserve from interest expense during the second quarter of 2025. These adjustments to our results are unusual, or infrequent, in nature and are not considered to be part of our non-interest expense, non-interest income and interest expense run rates, respectively. Each of adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders' equity and adjusted efficiency ratio excludes the impact of these items, net of tax, and are all considered non-GAAP financial measures. This press release also contains the non-GAAP financial measures of tangible common stockholders' equity, total tangible assets, tangible book value per share and tangible common equity to total tangible assets, each of which excludes goodwill associated with our acquisition of Metro Bancshares, Inc. in January 2015. We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that these non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies, including those in our industry, use. The following reconciliation table provides a more detailed analysis of the non-GAAP financial measures as of and for the comparative periods presented in this press release. Dollars are in thousands, except share and per share data. Three Months Ended June 30, 2025 Three Months Ended March 31, 2025 Three Months Ended June 30, 2024 Six Months Ended June 30, 2025 Six Months Ended June 30, 2024 Net income - GAAP $ 61,424 $ 63,224 $ 52,136 $ 124,648 $ 102,162 Adjustments: FDIC special assessment - - - - 1,799 Legal matter accrual reversal (2,276 ) - - (2,276 ) - Loss on marketable securities 8,563 - - 8,563 - Tax on adjustments (1,578 ) - - (1,578 ) (452 ) Adjusted net income - non-GAAP $ 66,133 $ 63,224 $ 52,136 $ 129,357 $ 103,509 Net income available to common stockholders - GAAP $ 61,393 $ 63,224 $ 52,105 $ 124,617 $ 102,131 Adjustments: FDIC special assessment - - - - 1,799 Legal matter accrual reversal (2,276 ) - - (2,276 ) - Loss on marketable securities 8,563 - - 8,563 - Tax on adjustments (1,578 ) - - (1,578 ) (452 ) Adjusted net income available to common stockholders - non-GAAP $ 66,102 $ 63,224 $ 52,105 $ 129,326 $ 103,478 Diluted earnings per share - GAAP $ 1.12 $ 1.16 $ 0.95 $ 2.28 $ 1.87 Adjustments: FDIC special assessment - - - - 0.03 Legal matter accrual reversal (0.04 ) - - (0.05 ) - Loss on marketable securities 0.16 - - 0.16 - Tax on adjustments (0.03 ) - - (0.03 ) (0.01 ) Adjusted diluted earnings per share - non-GAAP $ 1.21 $ 1.16 $ 0.95 $ 2.36 $ 1.89 Net interest income, on a fully taxable-equivalent basis $ 131,777 $ 255,394 Adjustments: Legal matter accrual reversal (2,276 ) (2,276 ) Tax on adjustments 571 571 Adjusted net interest income, on a fully taxable-equivalent basis $ 130,072 $ 253,689 Net interest margin-GAAP 3.10 % 3.01 % Average earning assets 17,076,353 17,132,710 Adjusted net interest margin-non-GAAP 3.06 % 2.99 % Return on average assets - GAAP 1.40 % 1.45 % 1.34 % 1.42 % 1.30 % Net income available to common stockholders - GAAP $ 61,393 $ 63,224 $ 52,105 $ 124,617 $ 102,131 Adjustments: FDIC special assessment - - - - 1,799 Legal matter accrual reversal (2,276 ) - - (2,276 ) - Loss on marketable securities 8,563 - - 8,563 - Tax on adjustments (1,578 ) - - (1,578 ) (452 ) Adjusted net income available to common stockholders - non-GAAP $ 66,102 $ 63,224 $ 52,105 $ 129,326 $ 103,478 Average assets - GAAP $ 17,626,503 $ 17,710,148 $ 15,697,538 $ 17,668,094 $ 15,827,894 Adjusted return on average assets - non-GAAP 1.50 % 1.45 % 1.34 % 1.48 % 1.31 % Return on average common stockholders' equity - GAAP 14.56 % 15.63 % 14.08 % 15.08 % 13.96 % Net income available to common stockholders - GAAP $ 61,393 $ 63,224 $ 52,105 $ 124,617 $ 102,131 Adjustments: FDIC special assessment - - - - 1,799 Legal matter accrual reversal (2,276 ) - - (2,276 ) - Loss on marketable securities 8,563 - - 8,563 - Tax on adjustments (1,578 ) - - (1,578 ) (452 ) Adjusted net income available to common stockholders - non-GAAP $ 66,102 $ 63,224 $ 52,105 $ 129,326 $ 103,478 Average common stockholders' equity - GAAP $ 1,690,855 $ 1,640,949 $ 1,488,429 $ 1,666,039 $ 1,471,048 Adjusted return on average common stockholders' equity non-GAAP 15.68 % 15.63 % 14.08 % 15.65 % 14.15 % Efficiency ratio 33.46 % 34.97 % 37.31 % 34.22 % 39.42 % Net interest income - GAAP $ 131,687 $ 123,553 $ 105,875 $ 255,240 $ 208,370 Adjustments: Legal matter accrual reversal (2,276 ) - - (2,276 ) - Adjusted net interest income - non-GAAP $ 129,411 $ 123,553 $ 105,875 $ 252,964 $ 208,370 Total non-interest income - GAAP 421 8,277 8,891 8,698 17,704 Adjustments: Loss on marketable securities 8,563 - - 8,563 - Adjusted non-interest income - non-GAAP $ 8,984 $ 8,277 $ 8,891 $ 17,261 $ 17,704 Adjusted net interest income and non-interest income - non-GAAP 138,395 131,830 114,766 270,225 226,074 Non-interest expense - GAAP $ 44,204 $ 46,107 $ 42,818 $ 90,311 $ 89,121 Adjustments: FDIC special assessment - - - - 1,799 Adjusted non-interest expense - non-GAAP $ 44,204 $ 46,107 $ 42,818 $ 90,311 $ 87,322 Adjusted efficiency ratio - non-GAAP 31.94 % 34.97 % 37.31 % 33.42 % 38.63 % Expand CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands) June 30, 2025 June 30, 2024 % Change ASSETS Cash and due from banks $ 140,659 $ 135,711 4 % Interest-bearing balances due from depository institutions 1,236,485 1,129,922 9 % Federal funds sold and securities purchased with agreement to resell 333,760 11,132 2,898 % Cash and cash equivalents 1,710,904 1,276,765 34 % Available for sale debt securities, at fair value 1,227,851 1,174,386 5 % Held to maturity debt securities (fair value of $639,455 and $785,270, respectively) 686,652 767,255 (11 )% Restricted equity securities 12,156 11,300 8 % Mortgage loans held for sale 22,131 11,174 98 % Loans 13,232,560 12,332,780 7 % Less allowance for credit losses (169,959 ) (158,092 ) 8 % Loans, net 13,062,601 12,174,688 7 % Premises and equipment, net 59,993 59,200 1 % Goodwill 13,615 13,615 - % Other assets 582,725 561,429 4 % Total assets $ 17,378,628 $ 16,049,812 8 % LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits: Non-interest-bearing demand $ 2,632,058 $ 2,475,415 6 % Interest-bearing 11,230,261 10,783,977 4 % Total deposits 13,862,319 13,259,392 5 % Federal funds purchased 1,599,135 1,097,154 46 % Other borrowings 64,747 64,739 - % Other liabilities 130,644 117,951 11 % Total liabilities 15,656,845 14,539,236 8 % Stockholders' equity: Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at June 30, 2025 and June 30, 2024 - - - % Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,618,545 shares issued and outstanding at June 30, 2025, and 54,521,479 shares issued and outstanding at June 30, 2024 54 54 - % Additional paid-in capital 236,716 234,495 1 % Retained earnings 1,500,767 1,322,048 14 % Accumulated other comprehensive loss (16,254 ) (46,521 ) (65 )% Total stockholders' equity attributable to ServisFirst Bancshares, Inc. 1,721,283 1,510,076 14 % Noncontrolling interest 500 500 - % Total stockholders' equity 1,721,783 1,510,576 14 % Total liabilities and stockholders' equity $ 17,378,628 $ 16,049,812 8 % Expand CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Interest income: Interest and fees on loans $ 206,521 $ 194,300 $ 403,457 $ 381,278 Taxable securities 16,562 16,158 32,585 32,137 Nontaxable securities 5 9 11 18 Federal funds sold and securities purchased with agreement to resell 1,592 538 1,612 1,079 Other interest and dividends 21,955 16,535 50,066 39,738 Total interest income 246,635 227,540 487,731 454,250 Interest expense: Deposits 93,488 104,671 188,233 208,737 Borrowed funds 21,460 16,994 44,258 37,143 Total interest expense 114,948 121,665 232,491 245,880 Net interest income 131,687 105,875 255,240 208,370 Provision for credit losses 11,296 5,353 17,926 9,721 Net interest income after provision for credit losses 120,391 100,522 237,314 198,649 Non-interest income: Service charges on deposit accounts 2,671 2,293 5,229 4,443 Mortgage banking 1,323 1,379 1,936 2,057 Credit card income 2,119 2,333 4,087 4,488 Securities losses (8,563 ) - (8,563 ) - Bank-owned life insurance income 2,126 2,058 4,263 5,289 Other operating income 745 828 1,746 1,427 Total non-interest income 421 8,891 8,698 17,704 Non-interest expense: Salaries and employee benefits 22,576 24,213 45,455 47,199 Equipment and occupancy expense 3,523 3,567 7,245 7,124 Third party processing and other services 8,005 7,465 15,743 14,631 Professional services 1,904 1,741 3,837 3,205 FDIC and other regulatory assessments 2,753 2,202 5,607 6,107 Other real estate owned expense 27 7 60 37 Other operating expense 5,416 3,623 12,364 10,818 Total non-interest expense 44,204 42,818 90,311 89,121 Income before income tax 76,608 66,595 155,701 127,232 Provision for income tax 15,184 14,459 31,053 25,070 Net income 61,424 52,136 124,648 102,162 Dividends on preferred stock 31 31 31 31 Net income available to common stockholders $ 61,393 $ 52,105 $ 124,617 $ 102,131 Basic earnings per common share $ 1.12 $ 0.96 $ 2.28 $ 1.87 Diluted earnings per common share $ 1.12 $ 0.95 $ 2.28 $ 1.87 Expand LOANS BY TYPE (UNAUDITED) (In thousands) 2nd quarter 2025 1st quarter 2025 4th quarter 2024 3rd quarter 2024 2nd quarter 2024 Commercial, financial and agricultural $ 2,952,028 $ 2,924,533 $ 2,869,894 $ 2,793,989 $ 2,935,577 Real estate - construction 1,735,405 1,599,410 1,489,306 1,439,648 1,510,677 Real estate - mortgage: Owner-occupied commercial 2,557,711 2,543,819 2,547,143 2,441,687 2,399,644 1-4 family mortgage 1,561,461 1,494,189 1,444,623 1,409,981 1,350,428 Non-owner occupied commercial 4,338,697 4,259,566 4,181,243 4,190,935 4,072,007 Subtotal: Real estate - mortgage 8,457,869 8,297,574 8,173,009 8,042,603 7,822,079 Consumer 87,258 65,314 73,627 61,986 64,447 Total loans $ 13,232,560 $ 12,886,831 $ 12,605,836 $ 12,338,226 $ 12,332,780 Expand (Dollars in thousands) 2nd quarter 2025 1st quarter 2025 4th quarter 2024 3rd quarter 2024 2nd quarter 2024 Allowance for credit losses: Beginning balance $ 165,034 $ 164,458 $ 160,755 $ 158,092 $ 155,892 Loans charged off: Commercial, financial and agricultural 6,849 2,415 3,899 3,020 3,355 Real estate - construction - 46 - - - Real estate - mortgage 581 3,571 560 252 119 Consumer 72 60 211 155 108 Total charge offs 7,502 6,092 4,670 3,427 3,582 Recoveries: Commercial, financial and agricultural 959 171 1,801 616 406 Real estate - construction - - - - 8 Real estate - mortgage 1 - 23 2 - Consumer 58 27 151 37 15 Total recoveries 1,018 198 1,975 655 429 Net charge-offs 6,484 5,894 2,695 2,772 3,153 Provision for loan losses 11,409 6,470 6,398 5,435 5,353 Ending balance $ 169,959 $ 165,034 $ 164,458 $ 160,755 $ 158,092 Allowance for credit losses to total loans 1.28 % 1.28 % 1.30 % 1.30 % 1.28 % Allowance for credit losses to total average loans 1.31 % 1.30 % 1.32 % 1.30 % 1.31 % Net charge-offs to total average loans 0.20 % 0.19 % 0.09 % 0.09 % 0.10 % Provision for credit losses to total average loans 0.35 % 0.21 % 0.21 % 0.17 % 0.18 % Nonperforming assets: Nonaccrual loans $ 68,619 $ 73,793 $ 39,501 $ 37,075 $ 33,454 Loans 90+ days past due and accruing 3,549 111 2,965 2,093 1,482 Other real estate owned and repossessed assets 311 756 2,531 2,723 1,458 Total $ 72,479 $ 74,660 $ 44,997 $ 41,891 $ 36,394 Nonperforming loans to total loans 0.55 % 0.57 % 0.34 % 0.32 % 0.28 % Nonperforming assets to total assets 0.42 % 0.40 % 0.26 % 0.25 % 0.23 % Nonperforming assets to earning assets 0.43 % 0.41 % 0.26 % 0.26 % 0.23 % Allowance for credit losses to nonaccrual loans 247.69 % 223.64 % 416.34 % 433.59 % 472.57 % Expand (In thousands except per share data) 2nd Quarter 2025 1st Quarter 2025 4th Quarter 2024 3rd Quarter 2024 2nd Quarter 2024 Interest income: Interest and fees on loans $ 206,521 $ 196,936 $ 200,875 $ 205,952 $ 194,300 Taxable securities 16,562 16,023 16,905 17,493 16,158 Nontaxable securities 5 6 6 7 9 Federal funds sold with agreement to 1,592 20 18 31 538 Other interest and dividends 21,955 28,111 26,088 24,496 16,535 Total interest income 246,635 241,096 243,892 247,979 227,540 Interest expense: Deposits 93,488 94,745 98,702 113,211 104,671 Borrowed funds 21,460 22,798 22,022 19,647 16,994 Total interest expense 114,948 117,543 120,724 132,858 121,665 Net interest income 131,687 123,553 123,168 115,121 105,875 Provision for credit losses 11,296 6,630 5,704 5,659 5,353 Net interest income after provision for credit losses 120,391 116,923 117,464 109,462 100,522 Non-interest income: Service charges on deposit accounts 2,671 2,558 2,650 2,341 2,293 Mortgage banking 1,323 613 1,513 1,352 1,379 Credit card income 2,119 1,968 1,867 1,925 2,333 Securities losses (8,563 ) - - - - Bank-owned life insurance income 2,126 2,137 2,131 2,113 2,058 Other operating income 745 1,001 642 818 828 Total non-interest income 421 8,277 8,803 8,549 8,891 Non-interest expense: Salaries and employee benefits 22,576 22,879 24,062 25,057 24,213 Equipment and occupancy expense 3,523 3,722 3,600 3,795 3,567 Third party processing and other services 8,005 7,738 8,515 8,035 7,465 Professional services 1,904 1,933 1,981 1,715 1,741 FDIC and other regulatory assessments 2,753 2,854 2,225 2,355 2,202 Other real estate owned expense 27 33 58 103 7 Other operating expense 5,416 6,948 6,455 4,572 3,623 Total non-interest expense 44,204 46,107 46,896 45,632 42,818 Income before income tax 76,608 79,093 79,371 72,379 66,595 Provision for income tax 15,184 15,869 14,198 12,472 14,459 Net income 61,424 63,224 65,173 59,907 52,136 Dividends on preferred stock 31 - 31 - 31 Net income available to common stockholders $ 61,393 $ 63,224 $ 65,142 $ 59,907 $ 52,105 Basic earnings per common share $ 1.12 $ 1.16 $ 1.19 $ 1.10 $ 0.96 Diluted earnings per common share $ 1.12 $ 1.16 $ 1.19 $ 1.10 $ 0.95 Expand (Dollars in thousands) 2nd Quarter 2025 1st Quarter 2025 4th Quarter 2024 3rd Quarter 2024 2nd Quarter 2024 Interest-earning assets: Loans, net of unearned income (1) Taxable $ 12,979,759 6.37 % $ 12,683,077 6.29 % $ 12,414,065 6.43 % $ 12,351,073 6.63 % $ 12,045,743 6.48 % Tax-exempt (2) 30,346 5.51 25,044 4.94 13,198 1.57 15,584 1.86 17,230 2.08 Total loans, net of unearned income 13,010,105 6.37 12,708,121 6.28 12,427,263 6.43 12,366,657 6.62 12,062,973 6.48 Mortgage loans held for sale 11,739 5.23 6,731 4.76 9,642 5.36 10,674 3.80 6,761 6.13 Debt securities: Taxable 1,965,089 3.37 1,934,739 3.31 1,932,547 3.49 1,955,632 3.57 1,936,818 3.33 Tax-exempt (2) 492 4.88 589 5.43 606 5.28 815 4.42 1,209 3.64 Total securities (3) 1,965,581 3.37 1,935,328 3.31 1,933,153 3.49 1,956,447 3.57 1,938,027 3.33 Federal funds sold and securities purchased with agreement to resell 124,303 5.14 1,670 4.86 1,596 4.49 2,106 5.86 38,475 5.62 Restricted equity securities 12,146 6.64 11,461 7.43 11,290 6.80 11,290 7.36 11,290 7.16 Interest-bearing balances with banks 1,952,479 4.47 2,526,382 4.48 2,143,474 4.81 1,775,192 5.46 1,183,482 5.57 Total interest-earning assets $ 17,076,353 5.80 % $ 17,189,693 5.69 % $ 16,526,418 5.87 % $ 16,122,366 6.12 % $ 15,241,008 6.01 % Non-interest-earning assets: Cash and due from banks 109,506 108,540 103,494 103,539 96,646 Net premises and equipment 59,944 59,633 60,708 60,607 59,653 Allowance for credit losses, accrued interest and other assets 380,700 352,282 346,763 340,621 300,521 Total assets $ 17,626,503 $ 17,710,148 $ 17,037,383 $ 16,627,133 $ 15,697,828 Interest-bearing liabilities: Interest-bearing deposits: Checking (4) $ 2,222,000 1.78 % $ 2,461,900 2.38 % $ 2,353,439 2.61 % $ 2,318,384 2.97 % $ 2,227,527 2.85 % Savings 101,506 1.63 101,996 1.61 102,858 1.52 102,627 1.76 105,955 1.71 Money market 7,616,747 3.67 7,363,163 3.61 7,067,265 3.86 7,321,503 4.45 6,810,799 4.46 Time deposits 1,321,404 4.09 1,361,558 4.24 1,286,754 4.45 1,197,650 4.52 1,157,528 4.47 Total interest-bearing deposits 11,261,657 3.33 11,288,617 3.40 10,810,316 3.63 10,940,164 4.12 10,301,809 4.09 Federal funds purchased 1,855,860 4.49 1,994,766 4.50 1,767,749 4.80 1,391,118 5.42 1,193,190 5.50 Other borrowings 64,750 4.26 64,750 4.30 64,738 4.22 64,738 4.22 64,738 4.27 Total interest-bearing liabilities $ 13,182,267 3.50 % $ 13,348,133 3.57 % $ 12,642,803 3.80 % $ 12,396,020 4.26 % $ 11,559,737 4.23 % Non-interest-bearing liabilities: Non-interest-bearing checking 2,633,552 2,600,775 2,672,875 2,575,575 2,560,245 Other liabilities 119,829 120,291 130,457 122,455 89,418 Stockholders' equity 1,716,232 1,670,402 1,624,084 1,574,902 1,536,013 Accumulated other comprehensive loss (25,377 ) (29,453 ) (32,836 ) (41,819 ) (47,584 ) Total liabilities and stockholders' equity $ 17,626,503 $ 17,710,148 $ 17,037,383 $ 16,627,133 $ 15,697,828 Net interest spread 2.30 % 2.12 % 2.07 % 1.86 % 1.78 % Net interest margin 3.10 % 2.92 % 2.96 % 2.84 % 2.79 % (1) Average loans include nonaccrual loans in all periods. Loan fees of $4,430, $3,764, $4,460, $3,949, and $3,317 are included in interest income in the second quarter of 2025, first quarter of 2025, fourth quarter of 2024, third quarter of 2024, and second quarter of 2024, respectively. (2) Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%. (3) Unrealized losses on debt securities of $(36,381), $(41,970), $(46,652), $(58,802), and $(66,663) for the second quarter of 2025, first quarter of 2025, fourth quarter of 2024, third quarter of 2024, and second quarter of 2024, respectively, are excluded from the yield calculation. (4) Includes impact of reversal of a $2.3 million accrual related to a legal matter. Please see 'GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.' Expand
Business Wire
3 days ago
- Business
- Business Wire
25% Revenue Growth Powers Record 2Q25 Results
WESTLAKE, Texas--(BUSINESS WIRE)--The Charles Schwab Corporation reported net income for the second quarter totaling $2.1 billion, or $1.08 earnings per share. Excluding $128 million of pre-tax transaction-related costs, adjusted (1) net income and earnings per share equaled $2.2 billion and $1.14, respectively. 2Q25 Client and Business Highlights Total client assets increased 14% year-over-year to a record $10.76 trillion Core net new assets of $80.3 billion brings year-to-date asset gathering to $218.0 billion – up 39% year-over-year New brokerage account openings increased 11% year-over-year to 1.1 million for the quarter, helping active brokerage accounts and total client accounts reach 37.5 million and 45.2 million, respectively Managed Investing Solutions net inflows grew 37% versus 2Q24 Margin balances ended the quarter at $83.4 billion – essentially flat quarter-over-quarter – as investors selectively increased leverage while equity markets rebounded following the disruption in early April Daily average trading volume remained robust at 7.6 million – up 38% versus 2Q24 Charles Schwab recognized as Best Investing Platform Overall by U.S. News (3) Charles Schwab Bank ranked #1 in J.D. Power's U.S. Direct Banking Satisfaction Study for the 7 th consecutive year (4) Three Months Ended June 30, % Six Months Ended June 30, % Financial Highlights 2025 2024 Change 2025 2024 Change Net income (in millions) GAAP $ 2,126 $ 1,332 60 % $ 4,035 $ 2,694 50 % Adjusted $ 2,222 $ 1,465 52 % $ 4,230 $ 2,934 44 % Diluted earnings per common share GAAP $ 1.08 $ .66 64 % $ 2.07 $ 1.34 54 % Adjusted $ 1.14 $ .73 56 % $ 2.17 $ 1.47 48 % Pre-tax profit margin GAAP 47.9 % 37.2 % 45.9 % 37.6 % Adjusted 50.1 % 41.0 % 48.2 % 40.9 % Return on average common stockholders' equity (annualized) 19 % 14 % 18 % 15 % Return on tangible common equity (annualized) 35 % 34 % 34 % 36 % Expand Note: Items labeled 'adjusted' are non-GAAP financial measures; further details are included on pages 10-12 of this release. All per-share results are rounded to the nearest cent, based on weighted-average diluted common shares outstanding. Expand 2Q25 Financial Commentary Quarterly net revenues grew year-over-year by 25% to a record $5.9 billion Net interest margin expanded sequentially by 12 basis points to 2.65% due primarily to the further reduction of higher cost liabilities and a rebound in securities lending activity Client transactional sweep cash balances ended at $412.1 billion, a sequential build of $4.3 billion, reflecting tax seasonality as well as client net equity selling during the period Bank Supplemental Funding (2) declined $10.4 billion during the quarter to $27.7 billion at June month-end Asset management and administration fees increased by 14% year-over-year to $1.6 billion, powered by organic growth, rebounding equity markets, and sustained product utilization Trading revenue increased 23% versus 2Q24 due to robust volumes GAAP expenses for the quarter increased 4% year-over-year; excluding second quarter amortization of acquired intangibles of $128 million, adjusted total expenses (1) were up 5% relative to 2Q24 Capital ratios across the firm remained strong – including preliminary consolidated Tier 1 Leverage and adjusted Tier 1 Leverage (1) equaling 9.8% and 7.2%, respectively Redeemed $2.5 billion Series G Preferred Stock Repurchased 3.9 million shares of our common stock for $351 million during the quarter (1) Further details on non-GAAP financial measures and a reconciliation of such measures to GAAP reported results are included on pages 10-12 of this release. (2) Bank Supplemental Funding includes repurchase agreements at the banks, Schwab Bank Certificates of Deposit (CDs), and Federal Home Loan Bank balances. (3) U.S. News & World Report's Best Investing Platforms award was given on April 23, 2025. The criteria, evaluation, and ranking were determined by U.S. News & World Report. See for more information. Schwab paid a licensing fee to U.S. News & World Report for use of the award and logos. (4) Charles Schwab Bank received the highest score in the checking segment of the J.D. Power 2019–2025 U.S. Direct Banking Satisfaction Studies, which measures overall satisfaction with direct branchless banks. Visit for more details. The J.D. Power 2025 U.S. Direct Banking Satisfaction Study is independently conducted, and the participating firms do not pay to participate. Use of study results in promotional materials is subject to a license fee. Expand Summer Business Update The company will host its Summer Business Update for institutional investors this morning from 7:30 a.m. - 8:30 a.m. CT, 8:30 a.m. - 9:30 a.m. ET. Registration for this Update webcast is accessible at Forward-Looking Statements This press release contains forward-looking statements relating to the company's revenue model, scale and efficiency, and capital ratios. These forward-looking statements reflect management's expectations as of the date hereof. Achievement of these expectations and objectives is subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. Important factors that may cause such differences are described in the company's most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company's website ( and on the Securities and Exchange Commission's website ( The company makes no commitment to update any forward-looking statements. About Charles Schwab The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 37.5 million active brokerage accounts, 5.6 million workplace plan participant accounts, 2.1 million banking accounts, and $10.76 trillion in client assets. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at THE CHARLES SCHWAB CORPORATION Financial and Operating Highlights (Unaudited) Q2-25 % change 2025 2024 vs. vs. Second First Fourth Third Second (In millions, except per share amounts and as noted) Q2-24 Q1-25 Quarter Quarter Quarter Quarter Quarter Net Revenues Net interest revenue 31 % 4 % $ 2,822 $ 2,706 $ 2,531 $ 2,222 $ 2,158 Asset management and administration fees 14 % 3 % 1,570 1,530 1,509 1,476 1,383 Trading revenue 23 % 5 % 952 908 873 797 777 Bank deposit account fees 61 % 1 % 247 245 241 152 153 Other 19 % 24 % 260 210 175 200 219 Total net revenues 25 % 5 % 5,851 5,599 5,329 4,847 4,690 Expenses Excluding Interest Compensation and benefits 6 % (8 )% 1,536 1,672 1,533 1,522 1,450 Professional services 12 % 8 % 291 269 297 256 259 Occupancy and equipment 9 % (1 )% 270 274 276 271 248 Advertising and market development 1 % 13 % 108 96 101 101 107 Communications 2 % 15 % 176 153 131 147 172 Depreciation and amortization (8 )% (1 )% 215 217 224 231 233 Amortization of acquired intangible assets (1 )% (2 )% 128 130 130 130 129 Regulatory fees and assessments (20 )% (13 )% 77 89 89 88 96 Other (1 )% 1 % 247 244 243 259 249 Total expenses excluding interest 4 % (3 )% 3,048 3,144 3,024 3,005 2,943 Income before taxes on income 60 % 14 % 2,803 2,455 2,305 1,842 1,747 Taxes on income 63 % 24 % 677 546 465 434 415 Net Income 60 % 11 % 2,126 1,909 1,840 1,408 1,332 Preferred stock dividends and other 23 % 32 % 149 113 123 109 121 Net Income Available to Common Stockholders 63 % 10 % $ 1,977 $ 1,796 $ 1,717 $ 1,299 $ 1,211 Earnings per common share: Basic 65 % 10 % $ 1.09 $ .99 $ .94 $ .71 $ .66 Diluted 64 % 9 % $ 1.08 $ .99 $ .94 $ .71 $ .66 Dividends declared per common share 8 % — $ .27 $ .27 $ .25 $ .25 $ .25 Weighted-average common shares outstanding: Basic (1 )% — 1,817 1,817 1,831 1,829 1,828 Diluted (1 )% — 1,822 1,822 1,836 1,834 1,834 Performance Measures Pre-tax profit margin 47.9 % 43.8 % 43.3 % 38.0 % 37.2 % Return on average common stockholders' equity (annualized) (1) 19 % 18 % 18 % 14 % 14 % Financial Condition (at quarter end, in billions) Cash and cash equivalents 27 % (8 )% $ 32.2 $ 35.0 $ 42.1 $ 34.9 $ 25.4 Cash and investments segregated 110 % 19 % 45.6 38.4 38.2 33.7 21.7 Receivables from brokers, dealers, and clearing organizations 34 % 48 % 4.3 2.9 2.4 3.4 3.2 Receivables from brokerage clients — net 14 % (2 )% 82.8 84.4 85.4 74.0 72.8 Available for sale securities (28 )% (10 )% 67.6 74.8 83.0 90.0 93.6 Held to maturity securities (9 )% (3 )% 139.7 143.8 146.5 149.9 153.2 Bank loans — net 19 % 7 % 50.4 47.1 45.2 43.3 42.2 Total assets 2 % (1 )% 458.9 462.9 479.8 466.1 449.7 Bank deposits (8 )% (5 )% 233.1 246.2 259.1 246.5 252.4 Payables to brokers, dealers, and clearing organizations (2) N/M 18 % 18.6 15.7 13.3 16.4 5.9 Payables to brokerage clients 37 % 9 % 109.4 100.6 101.6 89.2 80.0 Accrued expenses and other liabilities (2) 2 % (2 )% 10.8 11.0 12.3 11.2 10.6 Other short-term borrowings (15 )% 23 % 8.5 6.9 6.0 10.6 10.0 Federal Home Loan Bank borrowings (63 )% (22 )% 9.0 11.5 16.7 22.6 24.4 Long-term debt (10 )% (6 )% 20.2 21.5 22.4 22.4 22.4 Total liabilities 1 % (1 )% 409.5 413.4 431.5 418.8 405.7 Stockholders' equity 13 % — 49.5 49.5 48.4 47.2 44.0 Total liabilities and stockholders' equity 2 % (1 )% 458.9 462.9 479.8 466.1 449.7 Other Full-time equivalent employees (at quarter end, in thousands) 1 % 2 % 32.6 32.1 32.1 32.1 32.3 Capital expenditures — purchases of equipment, office facilities, and property, net (in millions) 48 % (13 )% $ 136 $ 156 $ 258 $ 135 $ 92 Expenses excluding interest as a percentage of average client assets (annualized) 0.12 % 0.12 % 0.12 % 0.12 % 0.13 % Clients' Daily Average Trades (DATs) (in thousands) 38 % 2 % 7,571 7,391 6,312 5,697 5,486 Number of Trading Days (2 )% 3 % 62.0 60.0 63.0 63.5 63.0 Expand (1) Return on average common stockholders' equity is calculated using net income available to common stockholders divided by average common stockholders' equity. (2) Beginning in the fourth quarter of 2024, payables to brokers, dealers, and clearing organizations are presented separately from accrued expenses and other liabilities. Prior period amounts have been reclassified to reflect this change. Payables to brokers, dealers, and clearing organizations include securities loaned. (3) Revenue per trade is calculated as trading revenue divided by the product of DATs multiplied by the number of trading days. N/M Not meaningful. Percentage changes greater than 200% are presented as not meaningful. Expand THE CHARLES SCHWAB CORPORATION Net Interest Revenue Information (In millions, except ratios or as noted) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Average Balance Interest Revenue/ Expense Average Yield/ Rate Average Balance Interest Revenue/ Expense Average Yield/ Rate Average Balance Interest Revenue/ Expense Average Yield/ Rate Average Balance Interest Revenue/ Expense Average Yield/ Rate Interest-earning assets Cash and cash equivalents $ 28,000 $ 305 4.30 % $ 28,839 $ 382 5.24 % $ 29,236 $ 633 4.30 % $ 31,394 $ 836 5.26 % Cash and investments segregated 47,574 506 4.20 % 21,493 281 5.17 % 43,117 918 4.23 % 25,503 669 5.19 % Receivables from brokerage clients 79,616 1,332 6.62 % 68,715 1,351 7.78 % 81,367 2,714 6.63 % 66,259 2,611 7.80 % Available for sale securities (1) 77,750 405 2.08 % 104,045 555 2.13 % 81,151 838 2.06 % 107,956 1,149 2.12 % Held to maturity securities (1) 141,098 602 1.70 % 154,314 658 1.70 % 142,740 1,224 1.71 % 155,862 1,348 1.73 % Bank loans 48,691 518 4.27 % 41,562 460 4.44 % 47,374 1,011 4.29 % 41,046 900 4.40 % Total interest-earning assets 422,729 3,668 3.45 % 418,968 3,687 3.50 % 424,985 7,338 3.44 % 428,020 7,513 3.49 % Securities lending revenue 96 95 156 171 Other interest revenue 23 35 50 74 Total interest-earning assets $ 422,729 $ 3,787 3.56 % $ 418,968 $ 3,817 3.62 % $ 424,985 $ 7,544 3.54 % $ 428,020 $ 7,758 3.60 % Funding sources Bank deposits $ 237,645 $ 326 0.55 % $ 258,119 $ 840 1.31 % $ 241,660 $ 762 0.64 % $ 266,243 $ 1,761 1.33 % Payables to brokers, dealers, and clearing organizations (2) 16,657 167 3.97 % 5,642 57 3.98 % 15,424 304 3.93 % 5,577 112 3.97 % Payables to brokerage clients 92,425 69 0.30 % 67,680 77 0.45 % 91,305 120 0.27 % 68,011 150 0.44 % Other short-term borrowings 7,644 87 4.55 % 9,268 129 5.59 % 7,172 169 4.74 % 8,327 232 5.60 % Federal Home Loan Bank borrowings 9,753 110 4.48 % 25,582 348 5.42 % 10,236 243 4.72 % 25,220 678 5.35 % Long-term debt 20,624 206 3.94 % 22,460 208 3.70 % 21,448 418 3.87 % 23,730 432 3.64 % Total interest-bearing liabilities (2) 384,748 965 1.00 % 388,751 1,659 1.71 % 387,245 2,016 1.04 % 397,108 3,365 1.70 % Non-interest-bearing funding sources (2) 37,981 30,217 37,740 30,912 Other interest expense — — — 2 Total funding sources $ 422,729 $ 965 0.91 % $ 418,968 $ 1,659 1.59 % $ 424,985 $ 2,016 0.95 % $ 428,020 $ 3,367 1.57 % Net interest revenue $ 2,822 2.65 % $ 2,158 2.03 % $ 5,528 2.59 % $ 4,391 2.03 % Expand (1) Amounts have been calculated based on amortized cost. (2) Beginning in the fourth quarter of 2024, payables to brokers, dealers, and clearing organizations is presented separately from non-interest-bearing funding sources and included in total interest-bearing liabilities. This line item includes securities loaned and related interest expense. Prior period amounts have been reclassified to reflect this change. Expand (1) Managed investing solutions includes managed portfolios, specialized strategies, and customized investment advice such as Schwab Wealth Advisory TM, Schwab Managed Portfolios TM, Managed Account Select ®, Schwab Advisor Network ®, Windhaven Strategies ®, ThomasPartners ® Strategies, Wasmer Schroeder TM Strategies, Schwab Index Advantage advised retirement plan balances, Schwab Intelligent Portfolios ®, Institutional Intelligent Portfolios ®, Schwab Intelligent Portfolios Premium ®, AdvisorDirect ®, Essential Portfolios, Selective Portfolios, and Personalized Portfolios; as well as legacy non-fee managed investing solutions including Schwab Advisor Source and certain retirement plan balances. Average client assets for managed investing solutions may also include the asset balances contained in the mutual fund and/or ETF categories listed above. For the total end of period view, please see the Monthly Activity Report. (2) Includes various asset-related fees, such as trust fees, 401(k) recordkeeping fees, and mutual fund clearing fees and other service fees. (3) Includes miscellaneous service and transaction fees relating to mutual funds and ETFs that are not balance-based. Expand THE CHARLES SCHWAB CORPORATION Growth in Client Assets and Accounts (Unaudited) Q2-25 % Change 2025 2024 vs. vs. Second First Fourth Third Second (In billions, at quarter end, except as noted) Q2-24 Q1-25 Quarter Quarter Quarter Quarter Quarter Assets in client accounts Schwab One ®, certain cash equivalents, and bank deposits 4 % (1 )% $ 342.7 $ 345.2 $ 358.8 $ 334.1 $ 330.7 Bank deposit account balances (3 )% (2 )% 82.1 83.7 87.5 84.0 84.5 Proprietary mutual funds (Schwab Funds ® and Laudus Funds ®) and CTFs Money market funds (1) 22 % 2 % 653.5 641.5 596.5 562.1 533.6 Equity and bond funds and CTFs (2) 16 % 10 % 249.7 227.0 232.2 228.9 214.4 Total proprietary mutual funds and CTFs 21 % 4 % 903.2 868.5 828.7 791.0 748.0 Mutual Fund Marketplace ® (3) Mutual Fund OneSource ® and other no-transaction-fee funds 32 % 33 % 453.9 340.3 347.8 358.0 344.8 Mutual fund clearing services 13 % 6 % 298.3 280.6 280.7 280.8 264.7 Other third-party mutual funds (1 )% (2 )% 1,168.5 1,195.4 1,211.1 1,236.5 1,177.5 Total Mutual Fund Marketplace 7 % 6 % 1,920.7 1,816.3 1,839.6 1,875.3 1,787.0 Total mutual fund assets 11 % 5 % 2,823.9 2,684.8 2,668.3 2,666.3 2,535.0 Exchange-traded funds Proprietary ETFs (2) 26 % 10 % 439.7 398.2 395.0 385.9 349.6 Other third-party ETFs 25 % 11 % 2,175.6 1,960.1 1,940.6 1,888.2 1,738.6 Total ETF assets 25 % 11 % 2,615.3 2,358.3 2,335.6 2,274.1 2,088.2 Equity and other securities 15 % 11 % 4,188.7 3,765.5 3,972.6 3,839.6 3,648.8 Fixed income securities (1 )% 2 % 788.0 775.8 762.3 795.4 792.0 Margin loans outstanding 16 % — (83.4 ) (83.6 ) (83.8 ) (73.0 ) (71.7 ) Total client assets 14 % 8 % $ 10,757.3 $ 9,929.7 $ 10,101.3 $ 9,920.5 $ 9,407.5 Client assets by business (4) Investor Services (5) 14 % 9 % $ 6,069.9 $ 5,557.4 $ 5,721.6 $ 5,576.7 $ 5,317.5 Advisor Services (6) 15 % 7 % 4,687.4 4,372.3 4,379.7 4,343.8 4,090.0 Total client assets 14 % 8 % $ 10,757.3 $ 9,929.7 $ 10,101.3 $ 9,920.5 $ 9,407.5 Net growth in assets in client accounts (for the quarter ended) Net new assets by business (4) Investor Services (5) (22 )% (55 )% $ 31.2 $ 69.5 $ 46.2 $ 37.2 $ 40.1 Advisor Services (6) 24 % (33 )% 42.4 62.9 62.2 53.6 34.1 Total net new assets (1 )% (44 )% $ 73.6 $ 132.4 $ 108.4 $ 90.8 $ 74.2 Net market gains (losses) 754.0 (304.0 ) 72.4 422.2 214.9 Net growth (decline) $ 827.6 $ (171.6 ) $ 180.8 $ 513.0 $ 289.1 New brokerage accounts (in thousands, for the quarter ended) 11 % (7 )% 1,098 1,183 1,119 972 985 Client accounts (in thousands) Active brokerage accounts 5 % 1 % 37,476 37,011 36,456 35,982 35,612 Banking accounts 9 % 2 % 2,096 2,050 1,998 1,954 1,931 Workplace Plan Participant Accounts (7) 4 % 2 % 5,586 5,495 5,399 5,388 5,363 Expand (1) Total client assets in purchased money market funds are located at: (2) Includes balances held on and off the Schwab platform. As of June 30, 2025, off-platform equity and bond funds, CTFs, and ETFs were $38.0 billion, $4.5 billion, and $156.9 billion, respectively. (3) Excludes all proprietary mutual funds and ETFs. (4) In the fourth quarter of 2024, Retirement Business Services moved from Advisor Services to Investor Services. Prior periods have been recast. (5) Second quarter of 2025 includes net outflows of $6.7 billion from off-platform Schwab Bank Retail CDs. First quarter of 2025 includes net outflows of $5.3 billion from off-platform Schwab Bank Retail CDs. Fourth quarter of 2024 includes net outflows of $5.5 billion from off-platform Schwab Bank Retail CDs and an outflow of $0.6 billion from a large international relationship. Third quarter of 2024 includes net outflows of $4.4 billion from off-platform Schwab Bank Retail CDs and an outflow of $0.1 billion from a large international relationship. Second quarter of 2024 includes net inflows of $2.7 billion from off-platform Schwab Bank Retail CDs and an inflow of $10.3 billion from a mutual fund clearing services client. (6) Fourth quarter of 2024 includes an outflow of $0.3 billion from a large international relationship. (7) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business. Expand The Charles Schwab Corporation Monthly Activity Report For June 2025 2024 2025 Change Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Mo. Yr. Market Indices (at month end) Dow Jones Industrial Average ® 39,119 40,843 41,563 42,330 41,763 44,911 42,544 44,545 43,841 42,002 40,669 42,270 44,095 4 % 13 % Nasdaq Composite ® 17,733 17,599 17,714 18,189 18,095 19,218 19,311 19,627 18,847 17,299 17,446 19,114 20,370 7 % 15 % Standard & Poor's ® 500 5,460 5,522 5,648 5,762 5,705 6,032 5,882 6,041 5,955 5,612 5,569 5,912 6,205 5 % 14 % Client Assets (in billions of dollars) Beginning Client Assets 9,206.3 9,407.5 9,572.1 9,737.7 9,920.5 9,852.0 10,305.4 10,101.3 10,333.1 10,280.2 9,929.7 9,892.2 10,349.0 Net New Assets (1) 33.2 29.0 31.5 30.3 22.7 25.5 60.2 30.5 46.6 55.3 1.1 33.6 38.9 16 % 17 % Net Market Gains (Losses) 168.0 135.6 134.1 152.5 (91.2 ) 427.9 (264.3 ) 201.3 (99.5 ) (405.8 ) (38.6 ) 423.2 369.4 Total Client Assets (at month end) 9,407.5 9,572.1 9,737.7 9,920.5 9,852.0 10,305.4 10,101.3 10,333.1 10,280.2 9,929.7 9,892.2 10,349.0 10,757.3 4 % 14 % Core Net New Assets (1,2) 29.1 29.0 32.8 33.5 24.6 28.8 61.4 30.6 48.0 59.1 2.7 35.0 42.6 22 % 46 % Receiving Ongoing Advisory Services (at month end) Investor Services 632.9 649.1 663.7 675.1 665.6 688.9 682.0 698.7 703.5 688.8 688.2 711.2 737.6 4 % 17 % Advisor Services 4,090.0 4,185.4 4,268.1 4,343.8 4,303.3 4,489.2 4,379.7 4,496.6 4,493.2 4,372.3 4,353.0 4,525.6 4,687.4 4 % 15 % Client Accounts (at month end, in thousands) Active Brokerage Accounts 35,612 35,743 35,859 35,982 36,073 36,222 36,456 36,709 36,861 37,011 37,254 37,375 37,476 — 5 % Banking Accounts 1,931 1,937 1,940 1,954 1,967 1,980 1,998 2,019 2,033 2,050 2,066 2,077 2,096 1 % 9 % Workplace Plan Participant Accounts (3) 5,363 5,382 5,373 5,388 5,407 5,393 5,399 5,450 5,464 5,495 5,518 5,563 5,586 — 4 % Client Activity New Brokerage Accounts (in thousands) 310 327 324 321 331 357 431 433 362 388 439 336 323 (4 )% 4 % Client Cash as a Percentage of Client Assets (4) 9.7 % 9.6 % 9.5 % 9.5 % 9.8 % 9.5 % 10.1 % 9.8 % 10.0 % 10.6 % 10.5 % 10.1 % 9.9 % (20) bp 20 bp Derivative Trades as a Percentage of Total Trades 21.3 % 21.2 % 20.8 % 21.5 % 21.4 % 19.7 % 18.6 % 19.3 % 19.9 % 19.5 % 18.4 % 21.0 % 20.8 % (20) bp (50) bp Selected Average Balances (in millions of dollars) Average Interest-Earning Assets (5) 417,150 417,379 420,191 420,203 422,327 425,789 431,177 431,523 424,805 425,228 430,884 419,638 417,768 — — Average Margin Balances 69,730 73,206 73,326 72,755 74,105 76,932 81,507 82,551 84,233 82,725 77,478 79,132 82,339 4 % 18 % Average Bank Deposit Account Balances (6) 85,195 83,979 82,806 82,336 83,261 84,385 85,384 84,790 83,089 84,302 84,060 81,495 81,014 (1 )% (5 )% Mutual Funds and Exchange-Traded Funds Net Buys (Sells) (7,8) (in millions of dollars) Equities 3,379 10,908 5,609 5,217 7,176 13,226 14,805 10,050 4,987 (1,221 ) 7,950 10,473 8,987 Hybrid (843 ) (1,155 ) (1,377 ) (432 ) (1,397 ) (329 ) 124 (1,324 ) (464 ) (603 ) (1,663 ) (287 ) (1,038 ) Bonds 6,346 8,651 10,919 11,015 10,442 7,473 10,969 8,747 12,162 11,438 (1,490 ) 8,483 6,050 Net Buy (Sell) Activity (in millions of dollars) Mutual Funds (7) (4,254 ) (4,679 ) (4,003 ) (1,261 ) (4,905 ) (4,492 ) (4,331 ) (6,785 ) (3,971 ) (8,537 ) (13,955 ) (3,224 ) (5,351 ) Exchange-Traded Funds (8) 13,136 23,083 19,154 17,061 21,126 24,862 30,229 24,258 20,656 18,151 18,752 21,893 19,350 Money Market Funds 3,858 9,110 8,048 9,672 11,032 9,172 8,956 11,584 12,306 14,586 (6,158 ) 5,794 5,814 Expand Note: Certain supplemental details related to the information above can be found at: (1) Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs. 2024 also includes outflows from a large international relationship of $0.1 billion in August, $0.3 billion in October, and $0.6 billion in November. (2) Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion beginning in 2025; $10 billion in prior periods) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods. (3) Includes Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business. (4) Schwab One ®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank. (5) Represents average total interest-earning assets on the Company's balance sheet. (6) Represents average clients' uninvested cash sweep account balances held in deposit accounts at third-party financial institutions. (7) Represents the principal value of client mutual fund transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to investment managers. Excludes money market fund transactions. (8) Represents the principal value of client ETF transactions handled by Schwab, including transactions in proprietary ETFs. Expand THE CHARLES SCHWAB CORPORATION Non-GAAP Financial Measures (In millions, except ratios and per share amounts) (Unaudited) In addition to disclosing financial results in accordance with generally accepted accounting principles in the U.S. (GAAP), Schwab's second quarter earnings release contains references to the non-GAAP financial measures described below. We believe these non-GAAP financial measures provide useful supplemental information about the financial performance of the Company, and facilitate meaningful comparison of Schwab's results in the current period to both historic and future results. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may not be comparable to non-GAAP financial measures presented by other companies. Schwab's use of non-GAAP measures is reflective of certain adjustments made to GAAP financial measures as described below. Non-GAAP Adjustment or Measure Definition Usefulness to Investors and Uses by Management Acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs Schwab adjusts certain GAAP financial measures to exclude the impact of acquisition and integration-related costs incurred as a result of the Company's acquisitions, amortization of acquired intangible assets, restructuring costs, and, where applicable, the income tax effect of these expenses. Adjustments made to exclude amortization of acquired intangible assets are reflective of all acquired intangible assets, which were recorded as part of purchase accounting. These acquired intangible assets contribute to the Company's revenue generation. Amortization of acquired intangible assets will continue in future periods over their remaining useful lives. We exclude acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs for the purpose of calculating certain non-GAAP measures because we believe doing so provides additional transparency of Schwab's ongoing operations, and is useful in both evaluating the operating performance of the business and facilitating comparison of results with prior and future periods. Costs related to acquisition and integration or restructuring fluctuate based on the timing of acquisitions, integration and restructuring activities, thereby limiting comparability of results among periods, and are not representative of the costs of running the Company's ongoing business. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of the Company's underlying operating performance. Return on tangible common equity Return on tangible common equity represents annualized adjusted net income available to common stockholders as a percentage of average tangible common equity. Tangible common equity represents common equity less goodwill, acquired intangible assets — net, and related deferred tax liabilities. Acquisitions typically result in the recognition of significant amounts of goodwill and acquired intangible assets. We believe return on tangible common equity may be useful to investors as a supplemental measure to facilitate assessing capital efficiency and returns relative to the composition of Schwab's balance sheet. Adjusted Tier 1 Leverage Ratio Adjusted Tier 1 Leverage Ratio represents the Tier 1 Leverage Ratio as prescribed by bank regulatory guidance for the consolidated company and for Charles Schwab Bank, SSB (CSB), adjusted to reflect the inclusion of accumulated other comprehensive income (AOCI) in the ratio. Inclusion of the impacts of AOCI in the Company's Tier 1 Leverage Ratio provides additional information regarding the Company's current capital position. We believe Adjusted Tier 1 Leverage Ratio may be useful to investors as a supplemental measure of the Company's capital levels. Expand The Company also uses adjusted diluted EPS and return on tangible common equity as components of performance criteria for employee bonus and certain executive management incentive compensation arrangements. The Compensation Committee of CSC's Board of Directors maintains discretion in evaluating performance against these criteria. Additionally, the Company uses adjusted Tier 1 Leverage Ratio in managing capital, including its use of the measure as its long-term operating objective. THE CHARLES SCHWAB CORPORATION Non-GAAP Financial Measures (In millions, except ratios and per share amounts) (Unaudited) The tables below present reconciliations of GAAP measures to non-GAAP measures: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Total Expenses Excluding Interest Net Income Total Expenses Excluding Interest Net Income Total Expenses Excluding Interest Net Income Total Expenses Excluding Interest Net Income Total expenses excluding interest (GAAP), Net income (GAAP) $ 3,048 $ 2,126 $ 2,943 $ 1,332 $ 6,192 $ 4,035 $ 5,885 $ 2,694 Amortization of acquired intangible assets (128 ) 128 (129 ) 129 (258 ) 258 (259 ) 259 Acquisition and integration-related costs (1) — — (36 ) 36 — — (74 ) 74 Restructuring costs (2) — — (10 ) 10 — — 18 (18 ) Income tax effects (3) N/A (32 ) N/A (42 ) N/A (63 ) N/A (75 ) Adjusted total expenses (non-GAAP), Adjusted net income (non-GAAP) $ 2,920 $ 2,222 $ 2,768 $ 1,465 $ 5,934 $ 4,230 $ $ 2,934 Expand (1) There were no acquisition and integration-related costs for the three and six months ended June 30, 2025. Acquisition and integration-related costs for the three and six months ended June 30, 2024 primarily consist of $18 million and $35 million of compensation and benefits, $12 million and $29 million of professional services, and $5 million of depreciation and amortization. (2) There were no restructuring costs for the three and six months ended June 30, 2025. Restructuring costs for the three and six months ended June 30, 2024 reflect a benefit due to a change in estimate of $3 million and $34 million in compensation and benefits, offset by $1 million and $3 million of occupancy and equipment expense and $12 million and $13 million of other expense. (3) The income tax effects of the non-GAAP adjustments are determined using an effective tax rate reflecting the exclusion of non-deductible acquisition costs and are used to present the acquisition and integration-related costs, amortization of acquired intangible assets, and restructuring costs on an after-tax basis. N/A Not applicable. Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Amount % of Total Net Revenues Amount % of Total Net Revenues Amount % of Total Net Revenues Amount % of Total Net Revenues Income before taxes on income (GAAP), Pre-tax profit margin (GAAP) $ 2,803 47.9 % $ 1,747 37.2 % $ 5,258 45.9 % $ 3,545 37.6 % Amortization of acquired intangible assets 128 2.2 % 129 2.8 % 258 2.3 % 259 2.7 % Acquisition and integration-related costs — — 36 0.8 % — — 74 0.8 % Restructuring costs — — 10 0.2 % — — (18 ) (0.2 )% Adjusted income before taxes on income (non-GAAP), Adjusted pre-tax profit margin (non-GAAP) $ 2,931 50.1 % $ 1,922 41.0 % $ 5,516 48.2 % $ 3,860 40.9 % Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Amount Diluted EPS Amount Diluted EPS Amount Diluted EPS Amount Diluted EPS Net income available to common stockholders (GAAP), Earnings per common share — diluted (GAAP) $ 1,977 $ 1.08 $ 1,211 $ .66 $ 3,773 $ 2.07 $ 2,462 $ 1.34 Amortization of acquired intangible assets 128 .07 129 .07 258 .14 259 .14 Acquisition and integration-related costs — — 36 .02 — — 74 .04 Restructuring costs — — 10 .01 — — (18 ) (.01 ) Income tax effects (32 ) (.01 ) (42 ) (.03 ) (63 ) (.04 ) (75 ) (.04 ) Adjusted net income available to common stockholders (non-GAAP), Adjusted diluted EPS (non-GAAP) $ 2,073 $ 1.14 $ 1,344 $ .73 $ 3,968 $ 2.17 $ 2,702 $ 1.47 Expand THE CHARLES SCHWAB CORPORATION Non-GAAP Financial Measures (In millions, except ratios and per share amounts) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Return on average common stockholders' equity (GAAP) 19 % 14 % 18 % 15 % Average common stockholders' equity $ 41,504 $ 33,991 $ 40,936 $ 33,264 Less: Average goodwill (11,951 ) (11,951 ) (11,951 ) (11,951 ) Less: Average acquired intangible assets — net (7,551 ) (8,067 ) (7,615 ) (8,132 ) Plus: Average deferred tax liabilities related to goodwill and acquired intangible assets — net 1,710 1,747 1,716 1,753 Average tangible common equity $ 23,712 $ 15,720 $ 23,086 $ 14,934 Adjusted net income available to common stockholders (1) $ 2,073 $ 1,344 $ 3,968 $ 2,702 Return on tangible common equity (non-GAAP) 35 % 34 % 34 % 36 % Expand (1) See table above for the reconciliation of net income available to common stockholders to adjusted net income available to common stockholders (non-GAAP). Expand (Preliminary) June 30, 2025 CSC CSB Tier 1 Leverage Ratio (GAAP) 9.8 % 12.2 % Tier 1 Capital $ 44,267 $ 32,114 Plus: AOCI adjustment (12,589 ) (10,932 ) Adjusted Tier 1 Capital 31,678 21,182 Average assets with regulatory adjustments 451,314 264,107 Plus: AOCI adjustment (13,231 ) (11,623 ) Adjusted average assets with regulatory adjustments $ 438,083 $ 252,484 Adjusted Tier 1 Leverage Ratio (non-GAAP) 7.2 % 8.4 % Expand
Malaysian Reserve
3 days ago
- Business
- Malaysian Reserve
3M Reports Second-Quarter 2025 Results, Increases Full-Year EPS Guidance
GAAP sales of $6.3 billion, up 1.4%; operating margin 18.0%, down (230) bps; EPS of $1.34, down 38%, all YoY Adjusted sales of $6.2 billion with organic growth of 1.5% YoY Adjusted operating margin of 24.5%, up 290 bps YoY Adjusted EPS of $2.16, up 12% YoY Operating cash flow of $(1.0) billion with adjusted free cash flow of $1.3 billion 2025 adjusted EPS guidance increased from $7.60 – $7.90 to $7.75 – $8.00, including the impact of tariffs Adjusted sales of $6.2 billion with organic growth of 1.5% YoY Adjusted operating margin of 24.5%, up 290 bps YoY Adjusted EPS of $2.16, up 12% YoY ST. PAUL, Minn., July 18, 2025 /PRNewswire/ — 3M (NYSE: MMM) today reported second-quarter 2025 results. 'We delivered strong results in the second quarter, posting positive organic sales growth and double-digit EPS growth,' said William Brown, 3M Chairman and CEO. 'This continues our trend from Q1 with all three business groups growing organically for the third quarter in a row. Our 3M eXcellence operating model is the foundation for delivering on each of our strategic priorities, and it drives the operating rigor and rhythm of our performance culture. With execution improving and solid results in the first half, we have confidence in our increased full-year EPS guidance, which now embeds the expected impact of tariffs.' Second-quarter highlights: Q2 2025 Q2 2024 GAAP EPS from continuing operations (GAAP EPS) $ 1.34 $ 2.17 Special items: Net costs for significant litigation 0.79 0.44 (Increase) decrease in value of Solventum ownership 0.01 (2.00) Pension risk transfer charge — 1.09 Manufactured PFAS products 0.02 — Divestiture costs — 0.23 Adjusted EPS from continuing operations (adjusted EPS) $ 2.16 $ 1.93 Memo: GAAP operating income margin 18.0 % 20.3 % Adjusted operating income margin 24.5 % 21.6 % GAAP EPS of $1.34 and operating margin of 18.0%. Adjusted EPS of $2.16, up 12% year-on-year. Adjusted operating income margin of 24.5%, an increase of 2.9 percentage points year-on-year. GAAP Adjusted (non-GAAP) Net sales (billions) $6.3 $6.2 Sales change Total sales 1.4 % 2.3 % Components of sales change: Organic sales 0.6 1.5 Acquisitions/divestitures — — Translation 0.8 0.8 Adjusted sales excludes manufactured PFAS products. Sales of $6.3 billion, up 1.4% year-on-year with organic sales up 0.6% year-on-year. Adjusted sales of $6.2 billion, up 2.3% year-on-year with adjusted organic sales up 1.5% year-on-year. 3M returned $1.3 billion to shareholders via dividends and share repurchases. Cash from operations of $(1.0) billion, driven by $2.2 billion net after tax payments for special item costs of significant litigation, primarily Public Water Systems and Combat Arms Earplugs. Adjusted free cash flow of $1.3 billion. This document includes reference to certain non-GAAP measures. See the 'Supplemental Financial Information Non-GAAP Measures' section for applicable information. Updated full-year guidance 3M updated its full year 2025 guidance given the company's performance in the first half of the year. The updated guidance includes the impact from tariffs. Adjusted total sales growth1 in the range of ~2.5 percent, reflecting adjusted organic sales growth1 of ~2.0 percent. Adjusted EPS1 in the range of $7.75 to $8.00. Adjusted operating cash flow1 of $5.1 to $5.5 billion, contributing to >100 percent adjusted free cash flow conversion1. 1As further discussed at 4 within the 'Supplemental Financial Information Non-GAAP Measures' sections, 3M cannot, without unreasonable effort, forecast certain items required to develop meaningful comparable GAAP financial measures and, therefore, does not provide them on a forward-looking basis reflecting these items. Conference call 3M will conduct an investor teleconference at 9 a.m. ET (8 a.m. CT) today. Investors can access this conference via the following: Live webcast at Webcast replay at Consolidated financial statements and supplemental financial information non-GAAP measures View the Financial Statement Information on 3M's website: Forward-looking statements This document contains forward-looking statements. You can identify these statements by the use of words such as 'plan,' 'expect,' 'aim,' 'believe,' 'project,' 'target,' 'anticipate,' 'intend,' 'estimate,' 'will,' 'should,' 'could,' 'would,' 'forecast,' 'future,' 'outlook,' 'guidance' and other words and terms of similar meaning. Forward-looking statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties. Actual future results and trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors. Among the factors that could cause actual results to differ materially are the following: (1) worldwide economic, political, regulatory, international trade, geopolitical, capital markets and other external conditions and other factors beyond the Company's control, including inflation; recession; military conflicts; trade restrictions such as sanctions, tariffs, reciprocal and retaliatory tariffs, and other tariff-related measures; regulatory requirements, legal actions, or enforcement; and natural and other disasters or climate change affecting the operations of the Company or its customers and suppliers; (2) foreign currency exchange rates and fluctuations in those rates; (3) liabilities and the outcome of contingencies related to certain fluorochemicals; known as 'PFAS,' including liabilities related to claims, lawsuits, and government regulatory proceedings concerning various PFAS-related products and chemistries, as well as risks related to the Company's plans to exit PFAS manufacturing and work to discontinue use of PFAS across its product portfolio; (4) risks related to the class-action settlement ('PWS Settlement') to resolve claims by public water suppliers in the United States regarding PFAS, as well as risks related to other settlements related to PFAS; (5) legal proceedings, including significant developments that could occur in the legal and regulatory proceedings described in the Company's reports on Form 10-K, 10-Q, and 8-K (Reports), as well as compliance risks related to legal or regulatory requirements, government contract requirements, policies and practices, or other matters that require or encourage the Company or its customers, suppliers, vendors, or channel partners to conduct business in a certain way; (6) competitive conditions and customer preferences; (7) the timing and market acceptance of new product and service offerings; (8) the availability and cost of purchased components, compounds, raw materials and energy due to shortages, increased demand and wages, tariffs, supply chain interruptions, or natural or other disasters; (9) unanticipated problems or delays when implementing new business systems and solutions, including with the phased implementation of a global enterprise resource planning (ERP) system, or security breaches and other disruptions to the Company's information or operational technology infrastructure; (10) the impact of acquisitions, strategic alliances, divestitures, and other strategic events resulting from portfolio management actions and other evolving business strategies; (11) operational execution, including the extent to which the Company can realize the benefits of planned productivity improvements, as well as the impact of organizational restructuring activities; (12) financial market risks that may affect the Company's funding obligations under defined benefit pension and postretirement plans; (13) the Company's credit ratings and its cost of capital; (14) tax-related external conditions, including changes in tax rates, laws or regulations; (15) matters relating to the spin-off of the Company's Health Care business, including the risk that the expected benefits will not be realized; the risk that the costs or dis-synergies will exceed the anticipated amounts; potential impacts on the Company's relationships with its customers, suppliers, employees, regulators and other counterparties; the ability to realize the desired tax treatment; risks under the agreements and obligations entered into in connection with the spin-off; and (16) matters relating to Combat Arms Earplugs ('CAE') and related products, including those related to, the August 2023 settlement that is intended to resolve, to the fullest extent possible, all litigation and alleged claims involving the CAE sold or manufactured by the Company's subsidiary Aearo Technologies and certain of its affiliates ('Aearo Entities') and/or the Company ('CAE Settlement'). A further description of these factors is located in the Reports under 'Cautionary Note Concerning Factors That May Affect Future Results' and 'Risk Factors' in Part I, Items 1 and 1A (Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly Reports). Changes in such assumptions or factors could produce significantly different results. The Company assumes no obligation to update any forward-looking statements discussed herein as a result of new information or future events or developments. About 3M3M (NYSE: MMM) is focused on transforming industries around the world by applying science and creating innovative, customer-focused solutions. Our multi-disciplinary team is working to solve tough customer problems by leveraging diverse technology platforms, differentiated capabilities, global footprint, and operational excellence. Discover how 3M is shaping the future at Please note that the company announces material financial, business and operational information using the 3M investor relations website, SEC filings, press releases, public conference calls and webcasts. The company also uses the 3M News Center and social media to communicate with our customers and the public about the company, products and services and other matters. It is possible that the information 3M posts on the News Center and social media could be deemed to be material information. Therefore, the company encourages investors, the media and others interested in 3M to review the information posted on 3M's News Center and the social media channels such as @3M or @3MNews. Contacts3MInvestor Contacts:Diane Farrow, 612-202-2449orEric Herron, 651-233-0043Media Contact:3MNews@
Cision Canada
3 days ago
- Business
- Cision Canada
Truist reports second quarter 2025 results
CHARLOTTE, N.C., July 18, 2025 /CNW/ -- Truist Financial Corporation (NYSE: TFC) reported its second quarter 2025 results today. Investors can access the live second quarter 2025 earnings call at 8 a.m. ET today by webcast or dial-in as follows: The earnings release, investor presentation, including an appendix reconciling non-GAAP disclosures, and Truist's Second Quarter 2025 Quarterly Performance Summary, which contains detailed financial schedules, are available at Truist's Investor Relations website at A replay of the call will be available on the website for 30 days. About Truist Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. Headquartered in Charlotte, North Carolina, Truist has leading market share in many of the high-growth markets in the U.S. and offers a wide range of products and services through wholesale and consumer businesses, including consumer and small business banking, commercial and corporate banking, investment banking and capital markets, wealth management, payments, and specialized lending businesses. Truist is a top-10 commercial bank with total assets of $544 billion as of June 30, 2025. Truist Bank, Member FDIC. Learn more at
