Capital levels remained stable with CET1 ratio near 11%, and $9 million of share repurchases executed in Q2.
Charge-off ratio remained stable at 22 basis points, consistent with expectations, with net charge-offs increasing slightly to $34 million.
Expenses increased by $4 million excluding deferred compensation, with personnel costs down $3 million but advertising and outside services up due to marketing investments.
Fee income decreased by $3 million quarter-over-quarter, impacted by a 6% decline in ADR and a flat rate environment affecting fixed income performance.
First Horizon reported an adjusted EPS of $0.45 for Q2 2025, a $0.03 increase from the prior quarter, driven by $10 million incremental net interest income and strong credit conditions.
Loans and deposits both increased by 2% quarter-over-quarter, with loans to mortgage companies up $689 million and C&I loans up $316 million.
Net interest income grew by $10 million, primarily from loan portfolio growth, especially in mortgage warehouse lending.
Net interest margin compressed by 2 basis points to 3.40%, influenced by higher interest-bearing deposit costs and brokered CDs growth.
AFG reported core net operating earnings of $2.14 per share for Q2 2025, down from $2.56 in the prior year quarter.
AFG returned over $100 million to shareholders in Q2 2025 through dividends and share repurchases.
Alternative investments returned 1.2% annualized in Q2 2025, down from 5.1% in the prior year quarter, negatively impacting overall investment income by about 5%.
Annualized core operating return on equity was 15.5%, despite lower returns from alternative investments.
Gross and net written premiums increased 10% and 7%, respectively, driven partly by earlier crop acreage reporting.
Net investment income excluding alternatives increased 10% year-over-year due to higher interest rates and asset balances.
Underwriting margins in Specialty Property & Casualty insurance were strong with a 93.1% combined ratio, up 2.6 points year-over-year.
Interest expense was $1.1 million this quarter, expected to rise to $1.7 million next quarter due to leverage on upcoming residential acquisitions.
Next quarter guidance includes adjusted EBITDA of approximately $20.5 million, distributable earnings between $0.44 and $0.46 per share, and adjusted EPS between $0.21 and $0.23 per share.
Recurring cash compensation decreased by $3.5 million sequentially to $38.6 million due to cost containment measures; recurring G&A decreased by $1.2 million to $9.5 million.
Recurring service revenues were approximately $44 million, down $1.5 million sequentially due to lower property management fees at RMR Residential, partially offset by seasonal improvements in Sonesta-related fees.
RMR reported adjusted net income of $0.28 per share, distributable earnings of $0.43 per share, and adjusted EBITDA of $20.1 million for Q3 2025, all in line with expectations.
Dafinchi