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.
Strategic Focus on Balance Sheet Remixing and Loan Composition Shift
The company is actively shifting its asset base from lower-yielding residential mortgages to higher-yielding commercial and C&I loans, with over $700 million in C&I growth in H1 2025.
This mix shift is driving record net interest income of $300 million in Q2, the strongest in company history.
The ongoing asset remixing is expected to support profitability and margin expansion, with net interest margin climbing above 3%.
Dafinchi