Allowance for credit losses was $51.6 million or 1.26% of gross loans, down from $54.9 million in the prior quarter.
Earnings for the June quarter were $1.39 diluted, unchanged from the prior quarter but up 17% year-over-year.
Full year fiscal '25 earnings were $5.18 compared to $4.42 in fiscal '24, driven by stronger net interest income from 7% earning asset growth and net interest margin expansion.
Net charge-offs totaled $5.3 million for the quarter, primarily from a special purpose CRE loan and a commercial contractor credit.
Net interest margin for the quarter was 3.46%, up from 3.39% in the prior quarter, benefiting from higher loan yields and deployment of excess cash into loans.
Noninterest expense rose 2.3% due to $425,000 consulting expenses and increased data processing costs.
Noninterest income increased 9.2% quarter-over-quarter, driven by an additional card network bonus of $537,000.
Provision for credit losses increased to $2.5 million from $932,000 in the prior quarter due to net charge-offs and loan growth.
Quarterly dividend increased by $0.02 or 8.7% to $0.25 per share.
Return on average assets was 1.21% and return on average equity was 11.4% for fiscal 2025.
Tangible book value per share increased by $5.19 or just above 14% over the last 12 months to $41.87.
AFFO generated during Q2 2025 was approximately $16 million.
Core FFO per diluted share for Q2 2025 was $0.36 versus $0.37 in Q2 2024, with a $0.01 decrease due to higher net interest expense from refinancing activity.
No final debt maturities until 2028 and $450 million available under revolving credit line.
Portfolio trading at roughly $200 per square foot valuation with an implied yield on cost after CapEx of more than 10%.
Repurchased approximately $68 million of 9.25% bonds, recognizing a $7.5 million loss on early extinguishment of debt but expected to save $7.5 million in total interest over 3 years.
Sale of three nonstrategic projects and downtime from lease expirations offset growth from higher economic occupancy and rental rate growth.
Adjusted leverage was modest at 1.6x as of quarter end, with total gross leverage at 1.9x, below the target range of 2x to 3x.
Declared and paid a $0.23 per share dividend; repurchased $6.6 million of common stock in Q2 with $93.4 million remaining in the repurchase program.
Ladder generated distributable earnings of $30.9 million or $0.23 per share in Q2 2025, achieving a return on equity of 7.7%.
Loan portfolio totaled $1.6 billion with a weighted average yield of approximately 9%, and 5 loans on nonaccrual totaling $162.3 million (3.6% of total assets).
Real estate portfolio of $936 million generated $15.1 million in net operating income, primarily from net lease properties with long-term leases to investment-grade tenants.
Securities portfolio was $2 billion, up 82% from year-end, with a weighted average yield of 5.9%, 99% investment-grade and 97% AAA rated.
Adjusted book value per share increased 14% year-over-year to $144.57, excluding unrealized investment gains and losses.
All three segments showed strong net earned premiums and excellent profitability: Business Insurance combined ratio improved to 88.3%, Bond and Specialty to 87.8%, and Personal Insurance to 79.3%.
Capital returned to shareholders totaled $809 million, including $557 million in share repurchases and $252 million in dividends.
Net earned premiums grew 7% to $10.9 billion with an underlying combined ratio improving 3 points to 84.7%.
Net investment income after tax was $774 million, a 6% increase from prior year, driven by a growing fixed income portfolio with total invested assets surpassing $100 billion.
Operating cash flow was $2.3 billion for the quarter, marking the 21st consecutive quarter with over $1 billion in operating cash flow, totaling over $40 billion in that period.
The Travelers Companies, Inc. reported exceptional Q2 2025 results with core income of $1.5 billion or $6.51 per diluted share and a core return on equity of 18.8% for the quarter, 17.1% on a trailing twelve-month basis.
Dafinchi