- Compensation, general, administrative, and servicing expenses were marginally lower, with transaction expenses down by $5 million.
- Earnings available for distribution were $32.1 million or $0.39 per share, and economic net interest income was $69 million.
- Economic return on GAAP book value was 0.5% for the quarter and 9.8% year-to-date; economic net interest income return on average equity was 10.5%.
- GAAP net income for Q2 2025 was $14 million or $0.17 per share, with GAAP book value at $20.91 per share.
- Total leverage was 4.5:1, with recourse leverage at 1.8:1, increased due to higher investments in agency securities.
- Yield on average interest-earning assets was 6%, average cost of funds was 4.5%, resulting in a net interest spread of 1.5%.
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- Earnings per share increased 8.2% versus last quarter and 17.8% versus Q2 2024 on an adjusted basis.
- Net interest income rose by $1.3 million or 2.4% from the prior quarter due to higher net interest margin and more days in Q2.
- Net interest margin improved to 3.51% from 3.44% primarily due to higher loan and investment portfolio yields.
- Noninterest expense decreased by $298,000 from prior quarter, mainly from lower benefit costs and payroll taxes.
- Provision for credit losses was $956,000, reflecting loan growth and net charge-offs.
- Regulatory capital ratios remain strong with tangible common equity ratio at 9.4%, up from 9.3%.
- Repurchased 193,700 shares at $4.5 million cost during Q2, with 797,000 shares remaining under repurchase plan.
- Total deposits decreased $60.9 million due to seasonal tax payment effects, but average total deposits increased $35.4 million from prior quarter.
- Total loan balances increased by $10 million in Q2, with loan yields at 5.50%, up 5 basis points from Q1.
- Earnings per share (EPS) for the quarter was $1.76, a 21% increase from the prior quarter.
- Net interest income increased by $6.7 million or about 10% quarter over quarter, driven by loan growth and lower funding costs.
- Net interest margin (NIM) expanded by 15 basis points to 3.83%, marking the seventh consecutive quarter of margin expansion.
- Non-interest expenses were flat at $43.1 million with some offsetting movements in payroll taxes, professional fees, IT project costs, licensing, and other expenses.
- Non-interest expense was flat at $43.1 million, with some offsetting movements in compensation, professional fees, IT project costs, licensing, and other expenses.
- Non-interest income declined by $1 million primarily due to a one-time income recognition in the prior quarter.
- Provision expense increased to $6.4 million due to loan growth, macroeconomic factors, and a $2.4 million reserve for a single non-performing loan.
- Second quarter loans increased by $271 million or 4.3%, and core deposits rose by $342 million or 5.3%.
- Tangible book value per share increased by more than 4% to $68.44, the tenth consecutive quarter of book value accretion.
- Total revenue grew 8% quarter over quarter to $76.2 million, and net income rose more than 15% to $18.8 million.
- Total revenue grew 8% quarter over quarter to $76.2 million, with net income rising over 15% to $18.8 million.
- Allowance for credit losses ratio increased slightly to 1.45%, with a $2.5 million provision driven by specific reserves and net charge-offs.
- Capital ratios remain strong with CET1 at 13.86% and Tier 1 leverage at 12.12%, tangible common equity to tangible assets at 9.98%, and tangible book value per share increased to $26.70.
- Deposits decreased by $53.6 million to $3.74 billion, with a shift toward more noninterest-bearing deposits, increasing their ratio to 26.7%.
- Loans held for investment grew by $23.1 million or 3% annualized to $3.1 billion, despite higher loan payoffs totaling $49.1 million in multifamily loans.
- Net interest income increased to $42.5 million from $38.5 million sequentially, with net interest margin (NIM) rising to 4.07% from 3.81%, partly due to the onetime interest recovery.
- Noninterest expense increased slightly to $33.5 million, driven by higher personnel and professional service costs.
- Noninterest income rose to $12.2 million from $10.6 million, mainly due to mortgage banking revenue increases and fair value adjustments.
- Second quarter diluted EPS was $0.86, up from $0.72 in the linked quarter, boosted by a $1.6 million onetime interest recovery related to a fully repaid nonaccrual loan.
- Completed sale of 5 hotels for $83 million at an approximate 6% cap rate on 2024 NOI levels.
- GOP margin for the quarter was 46.3%, up 30 basis points from Q2 2024 despite flat RevPAR environment.
- Leverage reduced to 21%, with net debt to EBITDA at 3.5x as of June 30, 2025.
- Q2 2025 hotel EBITDA was $30.9 million, adjusted EBITDA was $28.5 million, and adjusted FFO was $0.36 per share.
- Repurchased approximately 20,000 shares at a weighted average price of $7.02 under a $25 million share buyback plan.
- Cash same-property NOI growth in Q2 was 450 basis points, with onetime items contributing 300 basis points on a cash basis.
- Excluding that lease, cash re-leasing spreads would have been approximately positive 1%, a meaningful improvement year-over-year.
- FFO for the quarter was $1.13 per diluted share, including approximately $0.11 per share of onetime items such as a $10.7 million lease termination fee contributing $0.05 per share.
- GAAP re-leasing spreads were negative 11.2% and cash re-leasing spreads negative 15.2%, impacted by a single large lease in San Francisco with a term under 3 years.
- Occupancy ended Q2 at 80.8%, down from 81.4% in Q1, reflecting expected rightsizing and early vacates related to tenant bankruptcies.
- The removal of the 89% leased 4-building campus held for sale negatively impacted occupancy by 20 basis points but lease commencement acceleration maintained occupancy guidance midpoint.
- Expenses were elevated due to a $3.5 million lawsuit settlement but core expenses were around $111.5 million, expected to normalize next quarter.
- Home Bancshares reported record earnings of $118.4 million or $0.60 earnings per share in Q2 2025, with a return on assets of 2.08%, slightly up from Q1's $115.2 million and 2.07% ROA.
- Loan growth was solid, with CCFG portfolio growing by $122 million in Q2 and total loans funded around $1.1 billion.
- Loan loss reserve remained strong at 1.86%, Tier 1 capital at 15.6%, leverage ratio at 13.4%, and total risk-based capital at 19.3%.
- Non-GAAP earnings for the first six months of 2025 were $233.6 million, up over 15% from the prior year period.
- Tangible common equity grew by $1.36 billion or 11.25% over the past 12 months, from $12.08 billion to $13.44 billion.
- The company repurchased over 3 million shares worth about $86 million and paid $150 million in dividends over the past year.
- The non-GAAP return on tangible common equity was 18.26%, with GAAP ROTCE at 17.68%.
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