- Ares Commercial Real Estate reported a GAAP net loss of approximately $11 million or $0.20 per diluted common share for Q2 2025.
- Distributable earnings for Q2 2025 were a net loss of approximately $28 million or $0.51 per diluted common share, including a $33 million realized loss related to the exit of a Massachusetts office life sciences loan.
- Excluding the realized loss, distributable earnings were approximately $5 million or $0.09 per diluted common share.
- Net debt-to-equity ratio, excluding CECL, was stable at 1.2x quarter-over-quarter and down from 1.9x year-over-year.
- Outstanding borrowings decreased 6% quarter-over-quarter and 39% year-over-year to $889 million.
- The Board declared a regular cash dividend of $0.15 per common share for Q3 2025, with an annualized dividend yield above 13% based on the stock price as of July 31, 2025.
- The CECL reserve declined by approximately $20 million to $119 million, representing about 9% of the total outstanding principal balance of loans held for investment.
- The company collected $30 million in repayments during Q2 2025, nearly three times the amount collected in the first half of 2024, strengthening liquidity and the balance sheet.
- Unfunded commitments were reduced by 50% quarter-over-quarter and 58% year-over-year to $37 million.
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- Allowance for credit losses increased to $183 million, covering total loans at 2.38%, up 75 basis points from prior quarter.
- Book value per share decreased $1.96 to $39.03.
- Eagle Bancorp reported a net loss of $69.8 million or $2.30 per share in Q2 2025, compared to net income of $1.7 million or $0.06 per share in the prior quarter.
- Net interest income rose to $67.8 million, benefiting from lower deposit and borrowing costs, reduced short-term borrowings, and an additional day in the quarter.
- Noninterest expense decreased by $2 million to $43.5 million, attributed to lower legal, accounting, and professional fees.
- Noninterest income declined to $6.4 million from $8.2 million due to a $1.9 million loss from a repositioning trade in the investment portfolio.
- Nonperforming loans increased to $226.4 million, a net increase of $26 million for the quarter, with nonperforming assets to total assets at 2.16%, up 37 basis points.
- Pre-provision net revenue increased by $2.3 million to $30.7 million, driven by higher net interest income and lower noninterest expenses.
- Tier 1 leverage ratio decreased 48 basis points to 10.63%, common equity Tier 1 ratio decreased 60 basis points to 14.01%, and tangible common equity ratio increased 18 basis points to 11.18%.
- Book value per common share declined by about $0.25 to $7.99, partially offset by accretive share buybacks estimated to add $0.15 per share.
- CECL reserve declined by $25 million to $155 million, driven by $36 million of write-offs partially offset by an $11 million provision increase.
- Distributable loss for the quarter was $45.3 million or negative $0.94 per basic common share, including $36.1 million of write-offs related to nonaccrual loan resolutions.
- Provision for credit losses was $11 million or negative $0.23 per basic common share due to a less favorable macroeconomic forecast in the CECL model.
- Reported a GAAP net loss attributable to common stockholders of $17 million or negative $0.35 per basic common share in Q2 2025.
- Total leverage decreased slightly to 2.1x, with unrestricted cash of about $85 million at quarter end.
- A $12 million pretax gain from sale of multifamily loans and a $5.5 million noncash deferred tax impairment impacted net income this quarter.
- Axos Financial delivered strong Q4 fiscal 2025 results with $856 million net loan growth linked quarter and 6 basis points net interest margin expansion.
- Net income was approximately $110.7 million, with diluted EPS of $1.92, compared to $105.2 million and $1.81 respectively in the prior quarter.
- Net interest income was $280 million, up 7.7% year-over-year, and net interest margin was 4.84%, up from 4.78% in the prior quarter.
- Nonaccrual loans declined by $15 million linked quarter, improving the nonaccrual loans to total loans ratio to 79 basis points.
- Noninterest expenses increased 3% from prior quarter, excluding a $2 million legal accrual reversal, with salaries and benefits roughly flat.
- Total deposits increased 7.6% year-over-year to $21 billion, with a diverse deposit base supporting organic loan growth.
Dafinchi