- Hanmi's asset quality improved significantly from the previous quarter, with criticized loans decreasing by 72% and nonaccrual loans declining by 27%.
- The company successfully resolved over $100 million in special mention loans, mainly through loan paydowns and upgrades.
- A notable $8.6 million charge-off was taken on a syndicated office CRE loan that failed to resolve after maturity, reflecting proactive risk management.
- Management expressed confidence that the overall asset quality remains strong despite the large charge-off, emphasizing proactive portfolio management.
- The company closely monitors its $550 million syndicated loan portfolio, with no major issues identified apart from the one large office loan.
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- Capital ratios and tangible book value per share increased linked quarter driven by improved profitability and strategic balance sheet repositioning.
- Consumer loan balances decreased by $41 million due to strategic run down of indirect auto portfolio; residential mortgage lending modestly grew.
- Credit quality remained strong with substandard loans at 1.29%, nonperforming loans at 54 basis points, and net charge-offs near $254,000 or 2 basis points for the quarter.
- Horizon Bancorp reported strong second quarter 2025 earnings driven by core community banking franchise strength, significant net interest margin expansion, low net charge-offs of 2 basis points annualized, and improved ROAA and ROATCE metrics.
- Loan growth was solid with net loans held for investment growing $75.5 million or 1.5% in the quarter and 6.2% annualized, led by commercial loans growth of $117 million (14.8% quarterly growth).
- Net interest margin increased by 19 basis points to 3.23%, including 7 basis points of outsized interest recoveries; excluding recoveries, margin expanded driven by improved asset and liability mix and disciplined pricing.
- Noninterest income was stable with seasonal strength in interchange fees and mortgage gain on sale; expenses were well managed at $39.4 million, with full year expense outlook now approximately flat versus 2024.
- Reported earnings per share grew by 58% for the first six months of 2025 compared to the prior year.
- 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.
- Agency RMBS repo markets remained stable with repurchase spreads around SOFR plus 20 basis points.
- Comprehensive loss for the quarter was $221.8 million or $2.13 per share including the accrual, and $21.9 million or $0.21 per share excluding it.
- For the first half of 2025, total economic return on book value was negative 10.3% including the accrual and positive 2.9% excluding it.
- Including the accrual, book value decreased to $12.14 per share.
- Mark-to-market gains and losses were lower by $93.4 million due to unfavorable market movements on MSR, swaps, TBAs, and futures, partially offset by positive movements on Agency RMBS.
- MSR financing included $1.8 billion outstanding borrowings across 5 lenders with $837 million unused capacity.
- Net interest and servicing income increased by $3.1 million driven by Agency RMBS portfolio growth and higher float income on MSR, partially offset by lower servicing fee income and higher financing costs.
- The company issued $115 million of 9.38% senior notes due 2030 to refinance 6.25% senior notes due 2026.
- The company took a loss contingency accrual of $199.9 million or $1.92 per share related to ongoing litigation from the termination of its management agreement with PRCM Advisers.
- Two reported a total economic return of negative 14.5% for Q2 2025 including a loss contingency accrual of $1.92 per share, and negative 1.4% excluding the accrual.
- Asset quality remained excellent with net charge-offs increasing due to fully reserved credits; provision for credit losses was stable.
- Capital markets revenue improved 51% quarter-over-quarter to $10 million, though still below historical run rates.
- Net interest income increased to $62 million, driven by margin expansion and strong loan growth.
- Net interest margin (NIM) increased by 4 basis points to the high end of guidance, expanding 21 basis points over the past 5 quarters.
- Noninterest expenses were well controlled at $49.6 million, slightly below guidance, supporting an adjusted ROAA of 1.29%.
- QCR Holdings delivered strong second quarter earnings with a 13% EPS improvement over the first quarter.
- Tangible book value per share grew by $1.64, reflecting 13% annualized growth for the quarter.
- Tangible common equity to tangible assets ratio rose to 9.92%, and CET1 ratio increased to 10.43%, driven by strong earnings and consistent AOCI.
- 30-day delinquency rate improved to 6.6%, down 50 basis points sequentially and 30 basis points year-over-year.
- Book value per share reached $36.43 at quarter end.
- Capital generation was $16.9 million in Q2, with $26.8 million year-to-date.
- Net credit loss rate was 11.9%, improving 50 basis points sequentially and 80 basis points year-over-year.
- Net receivables grew by $70 million sequentially and were up 10.5% year-over-year.
- Operating expense ratio improved to 13.2%, an all-time best and 60 basis points better year-over-year.
- Quarterly revenue reached a record $157 million, up 10% year-over-year.
- Regional Management delivered net income of $10.1 million and diluted EPS of $1.03 in Q2 2025, a 20% year-over-year improvement.
- Returned $17.6 million to shareholders year-to-date via $11.6 million in stock repurchases and $6.1 million in dividends.
- Total originations hit a record $510 million, up 20% year-over-year.
- Allowance for credit losses totaled $142.2 million or 1.34% of total loans, with total loss absorption capacity of $250.6 million or 2.36% of loans.
- Asset quality remained sound with nonperforming loans declining to 0.61% of total loans and net charge-offs at $2.5 million (9 basis points annualized).
- Asset quality remained strong with nonperforming loans declining to 0.61% of total loans and net charge-offs at $2.5 million or 9 basis points annualized.
- Capital ratios remain strong with Tier 1 capital at 14.6% and tangible common equity to tangible assets at 9.75%.
- Capital ratios remain strong with Tier 1 capital ratio at 14.6% and tangible common equity to tangible assets at 9.75%, and tangible book value per share increased 12% year-over-year to $17.19.
- Loan growth was strong at an annualized 6.4%, with production of $854 million and a robust pipeline of $921 million.
- Net income increased 36% sequentially to $42.7 million or $0.50 per share, with adjusted net income up 39% to $44.5 million or $0.52 per share.
- Net interest income grew 7% to $126.9 million, driven by loan growth and lower deposit costs.
- Net interest income rose 7% to $126.9 million, driven by loan growth and lower deposit costs, with net interest margin expanding 10 basis points to 3.58%.
- Net interest margin expanded 10 basis points to 3.58%, or 5 basis points excluding accretion on acquired loans.
- Noninterest expense was $91.7 million, including $2.4 million in merger-related expenses, with an adjusted efficiency ratio improving to 55.4%.
- Noninterest expense was $91.7 million, including $2.4 million merger-related expenses, with adjusted efficiency ratio improving from 59.5% to 55.4%.
- Noninterest income increased 10% year-over-year to $24.5 million excluding securities activity, supported by treasury management, wealth, and insurance businesses.
- Noninterest income increased 10% year-over-year to $24.5 million, supported by treasury management, wealth, and insurance businesses.
- Return on assets improved to 1.08%, and return on tangible common equity rose to 12.8%.
- Return on assets improved to 1.08%, return on tangible common equity to 12.8%, and the adjusted efficiency ratio improved to 55%.
- Expenses were better than expected in the first half, with full year expenses forecasted around $506 million, slightly better than original expectations.
- Net income increased over 23% compared to the prior quarter driven by higher net interest and noninterest income, good expense control, and lower provision expense.
- Net interest income was $163.6 million, up $3.1 million from prior quarter, with NIM at 3.11%, up 3 basis points.
- Noninterest income was $54 million, benefiting from a few favorable items, with recurring noninterest income expected around $51 million per quarter.
- Provision for credit losses was $4.5 million, with allowance for credit losses increasing to $167.8 million, coverage flat at 1.17% of total loans and leases.
- Total deposits increased slightly, with public deposits up $166 million, offsetting declines in commercial and retail deposits.
- Total loans increased about $59 million or 0.4%, mainly from a $125 million increase in dealer floor plan balances, offset by payoffs in commercial real estate construction loans.
- 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%.
- 30-plus delinquency was 5.07%, down 29 basis points year-over-year.
- Capital generation was $222 million, up 63% year-over-year.
- C&I adjusted earnings were $1.45 per share, up 42%.
- C&I net charge-offs were 7.6%, down 60 basis points from last quarter and down 88 basis points year-over-year.
- Consumer loan net charge-offs were 7.2%, down 64 basis points from last quarter and down 110 basis points year-over-year.
- Consumer loan yield was 22.6%, up 19 basis points from the first quarter and up 67 basis points year-over-year.
- GAAP net income was $167 million or $1.40 per diluted share, up 137% from $0.59 per diluted share in Q2 2024.
- Interest income grew 10% year-over-year driven by receivables growth and yield improvement.
- Managed receivables ended the quarter at $25.2 billion, up 7% from a year ago.
- Net leverage at the end of Q2 was 5.5x, flat to last quarter.
- Operating expenses were $415 million, up 11% compared to a year ago.
- Originations grew 9%, driven by expanded use of granular data and product innovations.
- Total revenue grew 10% and receivables grew 7% year-over-year, crossing the $25 billion mark for the first time.
Dafinchi