- Core earnings per share of $0.38 surpassed consensus estimates by $0.03 and improved from $0.32 in the first quarter.
- Core return on assets was 1.31%, core pretax pre-provision ROA was 1.95%, and core efficiency ratio was 54.1%.
- Loan growth was strong at 8.1% annualized, broad-based across equipment finance, small business, commercial, indirect, and branch lending.
- Net interest income increased by $10.7 million quarter-over-quarter to $106.2 million.
- Net interest margin expanded from 3.62% to 3.83%, driven by improved loan yields, lower deposit costs, CenterBank acquisition, and roll-off of macro hedges.
- Noninterest income increased by $2.1 million to $24.7 million, driven by mortgage, SBA, interchange, wealth, and other service charges.
- Nonperforming loans increased by $40.1 million due to the floorplan credit and CenterBank acquisition; core credit metrics were neutral excluding these events.
- Provision expense was $12.6 million, including $3.8 million CECL provision for CenterBank; excluding that, provision was $8.8 million with $2.6 million for a single commercial floorplan loan moved to nonaccrual.
- Total deposits grew 9% year-to-date, reaching $10.1 billion, with strong performance in Community Pennsylvania and Ohio.
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- Core FAD increased by $0.05 to $0.71, reflecting rent escalations and turnaround impact of deferred rent from the prior year.
- Core FFO improved to $0.68 from $0.67 year-over-year, driven by decreased interest expense, increased fair market rent resets, and higher SHOP NOI.
- Debt to annualized adjusted EBITDA for real estate was 4.2x, with an annualized adjusted fixed charge coverage ratio of 5.1x as of June 30.
- SHOP portfolio NOI totaled $2.5 million in Q2 with average occupancy at 81%, generating approximately $780,000 more income than under prior triple net leases for the same period last year.
- Total liquidity stood at $674 million, supported by a new 4-year unsecured credit agreement increasing revolver commitments from $425 million to $600 million, with potential to increase to $1.2 billion.
- Quarterly loan growth reached 8% annualized, driven by strong new loan production in LIHTC and traditional banking segments.
- Growth impacted by runoff of M2 equipment finance loans, with a net effect of approximately 8%-10% gross loan growth for the second half of the year.
- Management remains optimistic about continued solid loan growth, with a focus on expanding in CRE and C&I sectors.
- B2B segment revenue grew nearly 40%, driven by a significant BaaS partner and growth in the BaaS portfolio.
- Consumer Services segment revenue declined but active account declines moderated, with retail channel showing flat active accounts and slight increases in key metrics.
- Corporate segment revenues increased due to higher interest income from balance sheet optimization and bond repositioning.
- Green Dot reported a strong Q2 2025 with adjusted revenue up 24% year-over-year and adjusted EBITDA up 34%, both exceeding expectations.
- Money Movement segment saw tax business outperform expectations with profits up over 10%, while money processing revenue declined modestly due to lower transaction volumes but improved revenue per transaction.
- Non-GAAP EPS reached $0.40 per share, a 60% increase year-over-year.
- Overall segment margins were flat year-over-year, with margin improvements in direct channel offsetting retail declines.
- Rapid Employer Services revenue declined due to challenges in the staffing industry, but margin expanded by 45 basis points due to improved profitability.
Dafinchi