- Commercial revenue increased by 33%, driven by broad-based strength across asset classes, notably industrial and multifamily.
- All-time record in National Commercial Services division for fee per file, with a 30% increase in fee per file.
- Strong pipeline with high-quality, large deals, including 11 transactions over $1 million.
- Anticipation of deal acceleration in Q4 due to upcoming renewable energy tax incentives, with a positive outlook for the second half of the year.
Explore Similar Insights
- Financed over 85,000 contracts and collected $1.4 billion overall during the quarter.
- Forecasted net cash flows declined by 0.5% or $56 million.
- Loan performance declined this quarter with 2022, 2023, and 2024 vintages underperforming expectations, while the 2025 vintage exceeded expectations.
- Loan portfolio reached a record-high of $9.1 billion on an adjusted basis, up 6% from last Q2.
- Market share in the core segment of used vehicles financed by subprime consumers was 5.4% for the first 5 months of the year, down from 6.6% in the same period in 2024.
- Paid $63 million in dealer holdback and accelerated dealer holdback to dealers.
- Unit and dollar volumes declined, impacted by Q3 2024 scorecard change and increased competition.
- FFO per share diluted as adjusted was $2.33 for 2Q 2025, up 1.3% compared to prior quarter.
- Occupancy at quarter end was 90.8%, down 90 basis points from prior quarter, with year-end 2025 guidance reiterated at 90.9% to 92.5%.
- Other income averaged about $20 million per quarter, consistent with recent history.
- Recognized impairments of real estate of $129.6 million during the quarter related to non-core assets.
- Reiterated full year 2025 FFO per share guidance at $9.26 midpoint.
- Same property NOI was down 5.4% and up 2% on a cash basis for the quarter.
- Strong balance sheet with $4.6 billion liquidity and longest average debt maturity of 12 years among S&P 500 REITs.
- Trailing 12 months G&A cost as a percentage of NOI was 6.3%, the lowest in 10 years, with expected annual savings of approximately $49 million for 2025.
- Venture investments realized $60 million gains in first half 2025, consistent with prior quarters.
- Net charge-offs were exemplary at 0.01%, despite some negative asset quality migration.
- Non-GAAP core net income was $19.5 million and EPS was $0.66 after excluding acquisition and core conversion expenses.
- Noninterest-bearing deposits increased 7.8% linked quarter, driven by short-term inflows.
- Noninterest expense was $51.2 million GAAP, $49.6 million core, relatively flat quarter-over-quarter.
- Q2 GAAP net income was $20.8 million with EPS of $0.70, including a $3.36 million gain on branch sale.
- ROAA was 1%, net interest margin remained stable at 3.68% GAAP and 3.64% core.
- Total deposits decreased $38.5 million, mainly due to interest-bearing deposit withdrawals and branch sale.
- Total loans held for investment increased 4.5% annualized, driven by C&I and CRE growth.
- AFFO was $18.4 million or $0.18 per diluted share.
- FFO attributable to common shareholders was $19 million or $0.19 per diluted share.
- Liquidity remained strong at $172.2 million including revolving credit availability.
- Net debt to total adjusted EBITDA stood at 7.7x, and stabilized portfolio debt to adjusted EBITDA was 5.2x.
- Normalized FFO for Q2 2025 was $0.25 per diluted share, in line with guidance.
- Office occupancy remained high at 96.3%, retail occupancy at 94.2%, and multifamily occupancy dipped slightly to 94%.
- Same-store NOI increased 1.4% on a GAAP basis and 0.3% on a cash basis.
- FFO and core FFO per share for Q2 2025 were $0.33 and $0.35 respectively, down from $0.36 in Q2 2024.
- Net assets increased from $1.16 billion to $1.2 billion mainly due to two industrial acquisitions totaling $78.95 million.
- Operating expenses decreased to $25.1 million in Q2 2025 from $26.0 million in Q2 2024, due to incentive fee waivers and lower depreciation, offset by higher property expenses.
- Same-store rents increased by 6.4% in the first half of 2025 compared to the same period in 2024.
- Total operating revenues increased to $39.5 million in Q2 2025 from $37.1 million in Q2 2024, driven by higher recovery and rental rates.
- Allowance for credit losses (ACL) increased by 4 basis points to 50 basis points, driven by higher reserves for new C&I loans and increased commercial loan loss factors.
- Core after-tax net income, adjusted for one-time loan transaction impacts and related hedge losses, was $1 million or $0.01 per share.
- Customer service costs decreased to $12.9 million from $15.1 million in the prior quarter, primarily due to exiting $540 million of MSR deposits.
- First Foundation posted a net loss of $7.7 million in Q2 2025, compared to a net income of $6.9 million in Q1 2025.
- Net interest margin (NIM) was 1.68% for the quarter, a 1 basis point increase from the prior quarter, with an adjusted NIM of approximately 1.72% excluding foregone interest income.
- Noninterest expense excluding customer service costs was $47 million, slightly higher than the prior quarter due to increased professional services costs.
- Noninterest income was approximately $12 million after adjusting for loan transaction-related items, with slight moderation in investment advisory, trust, and consulting fees.
- Nonperforming loans remained stable at 35 basis points, and net charge-offs were low at $135,000.
- Total loan yields decreased slightly by 5 basis points quarter-over-quarter, exiting just under 4.70%.
- Executed $377 million CRE loan sale in April and $481 million securitization in June, reducing CRE concentration from over 600% to 365% of regulatory capital.
- Plan to complete an additional securitization before year-end, aiming to fully exit the CRE held-for-sale portfolio by 2025.
- Balance sheet actions limited positive impact on net interest income but expected to improve net interest margin (NIM) to 1.8%-1.9% by end of 2025.
- Focus on reducing CRE concentration to mitigate volatility and enhance earnings stability.
- Adjusted EPS grew 19% year-over-year to $3.49, reflecting strong earnings power.
- Adjusted operating income rose 14% year-over-year to $1.2 billion, supported by restructuring savings and scale improvements from Aon Business Services (ABS).
- Adjusted operating margin expanded by 80 basis points to 28.2%, driven by scale improvements and restructuring savings.
- Aon delivered 6% organic revenue growth, 19% adjusted EPS growth, and 59% free cash flow growth in Q2 2025, in line with expectations.
- Aon delivered 6% organic revenue growth in Q2 2025, with total revenue increasing 11% to $4.2 billion.
- Commercial Risk, Reinsurance, and Health each delivered 6% organic revenue growth; Wealth grew 3%.
- Fiduciary investment income was $66 million, down 12% year-over-year due to lower interest rates despite higher average balances.
- Free cash flow increased 59% year-over-year to $732 million, supported by operating income growth and improved days sales outstanding.
- Free cash flow reached $732 million, up 59% year-over-year, driven by strong operating income and improved days sales outstanding.
- Leverage ratio improved to 3.4x, on track to reach target range of 2.8x to 3.0x by Q4 2025.
- NFP acquisition contributed positively to revenue and margin, with a more normalized margin profile post-acquisition.
- Operating leverage and restructuring savings ($35 million in Q2) contributed approximately 83 basis points to margin expansion.
- Organic revenue growth was broad-based across Commercial Risk, Reinsurance, and Health, each delivering 6% growth, while Wealth grew 3%.
- Retention improved by 1 point year-over-year, driven by gains in Commercial Risk segment.
- Returned $411 million to shareholders in dividends and $250 million in share repurchases during the quarter.
- Revenue-generating hires increased 6% through June 30, supporting sustainable organic growth.
- Total revenue increased 11% to $4.2 billion, with adjusted operating margin expanding 80 basis points to 28.2%.
Dafinchi