Allowance for credit losses was 1.47% of total loans with net charge-offs at 2 basis points annualized.
Independent Bank Corporation reported second quarter 2025 net income of $16.9 million or $0.81 per diluted share versus net income of $18.5 million or $0.88 per diluted share in the prior year period.
Loans increased by 9% annualized, while core deposits were down 1.4% annualized due to seasonality.
Net interest income increased $3.3 million from the year ago period with a tax equivalent net interest margin of 3.58% during Q2 2025, compared to 3.40% in Q2 2024, and up 9 basis points from Q1 2025.
Noninterest expense was $33.8 million in Q2 2025, slightly higher than $33.3 million in the prior year quarter but below the first quarter of 2025.
Noninterest income totaled $11.3 million in Q2 2025, down from $15.2 million in the year ago quarter.
Return on average assets was 1.27% and return on average equity was 14.66%.
Impact of Securities Portfolio Repositioning on Earnings and Margins
Executed an additional securities repositioning at the end of Q2, resulting in a $8.5 million net loss but expected to be accretive to future earnings.
Repositioning is projected to add 13 basis points to net interest margin and $0.20 of annual EPS, primarily benefiting Q3.
Management emphasized the strategic importance of this move for margin expansion and earnings growth.
Strategic Focus on Profitability and Balance Sheet Optimization
The company emphasized its focus on profitability, balance sheet optimization, and operational efficiency, which has been evident over the past 6 quarters.
Net interest margin (NIM) expanded by 15 basis points, driven by higher asset yields and lower funding costs.
The company maintained disciplined expense management and healthy credit metrics, with a loan portfolio that is slightly up and well remixing.
Agree Realty invested over $350 million in 110 properties during Q2 2025, including $328 million in acquisitions across 91 retail net lease assets with a weighted average cap rate of 7.1% and lease term of 12.2 years.
Core FFO per share was $1.05 for Q2, a 1.3% increase year-over-year, and AFFO per share was $1.06, a 1.7% increase year-over-year.
Liquidity stood at $2.3 billion with no material debt maturities until 2028 and pro forma net debt to recurring EBITDA at 3.1x, the lowest since Q4 2022.
The company declared monthly dividends of $0.256 per share for Q2, representing a 2.4% year-over-year increase and a payout ratio of 72% of AFFO per share.
The portfolio occupancy rebounded to 99.6% post re-tenanting of former Big Lots, with investment-grade exposure at 68%.
G&A expenses were $14.6 million for the quarter, representing only 1.5% of total revenue, among the lowest ratios in the triple net REIT sector and across all REITs.
Liquidity totaled approximately $2.9 billion, including $325.6 million from outstanding forwards, $2.4 billion available under revolving credit facility, and $233 million in cash.
Total debt stands at $17.1 billion with net debt to annualized Q2 adjusted EBITDA at approximately 5.1x, within the target leverage range of 5 to 5.5x.
VICI Properties reported FFO per share of $0.60 for Q2 2025, a 4.9% increase from $0.57 in Q2 2024, highlighting efficient triple net model with margins in the high 90% range excluding noncash items.
Weighted average interest rate is 4.47% adjusted for hedging, with a weighted average debt maturity of 6.5 years.
Dafinchi