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.
Adjusted EBITDA was $105 million with a margin of 24.8%, up 80 basis points sequentially; excluding divestiture impacts, EBITDA grew 12% with margin expansion of 130 basis points.
Adjusted net income was $27.6 million or $0.46 per share, down from $0.59 last year due to divestiture EBITDA loss; GAAP net loss of $50 million included noncash tax valuation allowances.
Digital Wallet revenue grew 3% organically to $201.2 million, with 7.2 million 3-month active users, but adjusted EBITDA was flat year-over-year due to lower interest revenue and business mix.
Merchant Solutions volume increased 9% to $35.7 billion, with organic revenue growth of 6% and adjusted EBITDA margin of 17.1%, despite mix headwinds from ISO channel growth.
Reported revenue declined 3% to $428.2 million, but organic revenue grew 5%, driven by double-digit e-commerce growth and modest gains in SMB and digital wallets.
Unlevered free cash flow was $54 million with a 51% conversion rate, impacted by unfavorable FX; LTM conversion stood at 64%, with full-year guidance of 65-70%.
Adjusted EBITDA for the 6 months ended June 30, 2025, was $259,000 compared to a loss of $14.7 million in the 2024 period.
Adjusted EBITDA for the second quarter was a loss of $849,000 compared to positive $2.9 million in the 2024 second quarter.
Adjusted net loss for the 6 months ended June 30, 2025, was $7.1 million or $0.08 per share compared to $23.6 million or $0.28 per share in the 2024 period.
Adjusted net loss for the second quarter was $4.7 million or $0.06 per share compared to $532,000 or $0.01 per share in the 2024 second quarter.
Cash and cash equivalents were approximately $136 million at June 30, 2025, providing ample liquidity.
Development marketing revenue increased to $35.4 million in the first half of 2025 from $17.7 million in the first half of 2024.
Douglas Elliman's revenues increased by 8% year-over-year to $524.8 million in the first half of 2025, marking the strongest first half revenue performance since 2022.
For the 6 months ended June 30, 2025, net loss was $28.7 million or $0.34 per diluted share compared to $43.1 million or $0.52 per diluted share in the 2024 period.
Net loss for the second quarter of 2025 was $22.7 million or $0.27 per diluted share compared to $1.7 million or $0.02 per diluted share in the second quarter of 2024.
Revenues from existing home sales in New York and Northeast markets increased by $16.8 million or 7.9% from the 2024 first half.
Core FFO per share reached a record $1.87, up 13% year-over-year and 6% higher than last quarter, reflecting strong upside from hyperscale commencements and better-than-expected 0-1 megawatt plus interconnection bookings.
Data center revenue increased 11% year-over-year, supported by strong renewal spreads, rent escalators and new lease commencements, offsetting disposition impacts.
Development CapEx was over $900 million gross, $700 million net to Digital Realty, with 96 megawatts of new capacity delivered (98% pre-leased) and 16 megawatts of new projects started construction.
Digital Realty posted double-digit growth in revenue, adjusted EBITDA and core FFO this quarter, driven by record lease commencements, low churn and higher fee income.
Gross data center development pipeline stands at $9 billion with a 12.2% expected stabilized yield; land bank grew to 3.7 gigawatts, extending runway to 5 gigawatts.
Leasing in the quarter totaled $177 million at 100% share, including $135 million at Digital Realty's share, with $90 million in the 0-1 megawatt plus interconnection category, an 18% increase over the prior record.
Renewal leases signed in the quarter totaled $177 million with a blended 7.3% cash basis increase, exceeding prior guidance.
Same-capital cash NOI grew 4.4% year-over-year, driven by 5.9% growth in data center revenue; on a constant currency basis, same-capital cash NOI rose 1.8%.
Total churn declined to 1%, with negligible churn in the greater than a megawatt category.
Dafinchi