Financial Performance - The company reported net income available to common equity of $310 million, resulting in diluted quarterly earnings per share of $2.24[9] - Record quarterly revenue reached $703 million, driven by record net interest income (NII) of $617 million[13] - The company's Return on Average Assets (ROAA) was 1.62%, and the Return on Average Common Equity (ROACE) was 15.4% (16.7% Adjusted ROTCE)[13] Balance Sheet and Loan Portfolio - Total average loans increased by 2% quarter-over-quarter, with strong growth in C&I and residential mortgage sectors[12] - Total average deposits also grew by 2% quarter-over-quarter, supported by strong growth from commercial and consumer customers, and a reduction in average deposit cost[12] - Average loans reached $54.3 billion, with C&I loans at $17.4 billion and residential mortgages at $5 billion[18] - Average deposits totaled $63.7 billion, showing year-over-year growth of 9%[14] Asset Quality - Criticized loans decreased by 14 basis points quarter-over-quarter to 2.15%[9] - Nonaccrual loans decreased by 3 basis points quarter-over-quarter to 25 basis points, with nonperforming assets at 22 basis points[12] - Net charge-offs were $15 million, equivalent to 11 basis points annualized[12] - The company bolstered its Allowance for Loan Losses (ALLL) to 1.38%, reflecting changes in the economic outlook[12] Capital and Ratios - The company's Tangible Common Equity (TCE) ratio stood at 10%, and the Common Equity Tier 1 (CET1) ratio was 14.5%[13] - The company repurchased $2 million shares in 2Q25, with $241 million remaining available under the share repurchase authorization[51] Outlook - The company expects full-year 2025 loan growth in the range of 4% to 6% year-over-year and net interest income trending above 7%[53]

Key Takeaways Rithm Capital is set to report Q2 earnings of 51 cents per share on $1.25B in revenues on July 28. Servicing, asset management, and other revenues are all projected to decline year over year in Q2. Origination gains and Newrez profitability may offset rising expenses and interest costs this quarter.Global asset manager Rithm Capital Corp. (RITM) is set to report second-quarter 2025 results on July 28, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’ ...

Financial Data and Key Metrics Changes - Earnings per share (EPS) was $0.87 and net income was $33 million, both exceeding Q4 2024 and Q1 2024, significantly above consensus estimates [7] - Customer deposit growth was over 7% annualized, marking the seventh consecutive quarter of growth [7][10] - Net interest margin (NIM) expanded by four basis points to 3.81% due to decreased funding costs [17] Business Line Data and Key Metrics Changes - Total loan growth was $93 million or 4.89% annualized, consistent with previous guidance [10] - Consumer loan growth was $12 million, driven by residential mortgage and home equity [11] - Commercial loan growth exceeded $81 million, primarily from commercial real estate and construction segments [12] Market Data and Key Metrics Changes - The majority of deposit growth came from consumer activities, with significant contributions from money market accounts [11] - The commercial and industrial (C&I) balances declined by $20 million, reflecting reduced borrowings in specific categories [13] Company Strategy and Development Direction - The company is focused on enhancing its deposit franchise, maintaining top quartile profitability, and ensuring high asset quality [6] - There is an emphasis on organic and inorganic growth opportunities, with plans to cross $10 billion in assets in the second half of the year [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market uncertainties, supported by strong employee engagement and performance recognition [6] - The outlook for loan growth remains positive, with expectations for mid-single-digit growth in the short term [13] Other Important Information - Non-interest income declined by $700,000 due to seasonal factors, but core non-interest income remained stable year-over-year [18] - The total capital ratio increased by 34 basis points, positioning the company well for future growth opportunities [19] Q&A Session Summary Question: Thoughts on deals in the current environment and timing for crossing $10 billion in assets - Management indicated ongoing conversations in the market and anticipated crossing $10 billion in the second half of the year, with preparations for regulatory requirements [27] Question: Insights on spreads in C&I and commercial real estate - Spreads in C&I remained stable, with hesitancy observed among customers due to economic uncertainty, while some regional banks have become more aggressive in commercial real estate [28][29] Question: Impact of tariffs on borrower base and credit trends - Management is actively monitoring the impact of tariffs and has seen stability in criticized and classified loans, indicating a normalization in credit trends [36][37] Question: Expectations for loan yields and securities cash flows - New loan yields were reported in the $6.75 range, with expectations for continued support to the margin from securities and swaps [43][44] Question: Hiring expectations and pipeline growth - The company is focused on recruiting C&I bankers to support pipeline expansion, with a cautious approach to hiring amid macroeconomic uncertainties [53]

Financial Data and Key Metrics Changes - Earnings per share (EPS) was $0.87 and net income was $33 million, both exceeding Q4 2024 and Q1 2024, significantly above consensus estimates [7] - Customer deposit growth was over 7% annualized, marking the seventh consecutive quarter of growth [7][10] - Net interest margin (NIM) expanded by four basis points to 3.81%, with funding costs decreasing [8][17] Business Line Data and Key Metrics Changes - Total loan growth was $93 million or 4.89% annualized, consistent with previous guidance [10] - Consumer loan growth was $12 million, driven by residential mortgage and home equity [11] - Commercial loan growth exceeded $81 million, primarily from commercial real estate and construction segments [12] Market Data and Key Metrics Changes - The majority of deposit growth came from consumer activities, with significant contributions from money market accounts [11] - The commercial and industrial (C&I) balances declined by $20 million, reflecting reduced automobile floor plan borrowings [13] Company Strategy and Development Direction - The company is focused on enhancing its deposit franchise, maintaining top quartile profitability, and ensuring high asset quality [6] - There is an emphasis on organic growth through hiring additional bankers and improving customer engagement [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market uncertainties, supported by strong employee engagement and financial performance [6] - The outlook for loan growth remains positive, with expectations for mid-single-digit growth in the short term and high mid-single-digit growth in the latter half of 2025 [13][40] Other Important Information - The allowance for credit losses declined by approximately $2.5 million, ending the quarter at 1.26% of total loans [14] - Non-interest income declined by $700,000 due to seasonally lower customer activity [18] Q&A Session Summary Question: Thoughts on deals in the current environment and timing for crossing $10 billion without a deal - Management indicated ongoing conversations in the market and anticipated crossing $10 billion in the second half of the year, prepared for regulatory requirements [26] Question: Insights on spreads in C&I and CRE - Spreads in the C&I space remained stable, with hesitancy among customers due to economic uncertainty; CRE spreads faced pressure from larger banks becoming more aggressive [27][28] Question: Impact of tariffs on borrower base and credit trends - Management is actively monitoring credit risk related to tariffs and has seen stabilization in criticized and classified loans [36][39] Question: Expectations for loan yields and securities cash flows - New loan yields were around 6.75%, with expectations for continued support to the margin from securities and swaps [42][45] Question: Hiring expectations for the year - The company is focused on recruiting C&I bankers to support pipeline expansion, with a 15% increase in calling officers already achieved [52]

2025 First Quarter Earnings Conference Call April 22, 2025 Forward Looking Statements & Additional Disclosures Some statements in this presentation may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words "will," "believes," "expects," "anticipates," "intends, ...