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%.
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.
Book value per common share was $11.20, slightly up from $11.19 in the previous quarter.
Debt-to-equity ratio increased modestly to 2.6x from 2.2x to support loan growth.
Liquidity at quarter end was $236.4 million, including $165.9 million cash and $66.1 million undrawn credit capacity.
Loan portfolio grew by 15% in Q2 2025, with a 100% performing loan book and no 5-rated loans, only 2 rated 4.
Repurchased 1.7 million common shares for $12.5 million, generating $0.08 per share of book value accretion.
Sold 2 REO properties at a combined GAAP gain of $7 million, reducing REO exposure to about 5% of total assets.
TRTX reported GAAP net income of $16.9 million or $0.21 per common share and distributable earnings of $0.24 per common share, covering the quarterly dividend of $0.24 per share.
Weighted average credit spread on new loans was 2.86%.
Dafinchi