- All rent payments are current from tenants despite the increased provision for credit losses.
- Operating expenses increased by $65.6 million primarily due to a noncash provision for credit losses based on a more pessimistic economic forecast.
- Record year-over-year revenue, AFFO, and adjusted EBITDA were achieved in the quarter.
- Rent coverage ratios ranged from 1.69 to 2.72x on master leases as of the prior quarter end.
- Total income from real estate for Q2 2025 exceeded Q2 2024 by over $14 million, driven by cash rent increases of over $22 million from acquisitions and escalations.
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- Bankers Healthcare Group (BHG) had a strong quarter with fee revenues over $26 million and earnings growth guidance raised from 20% to approximately 40% for 2025.
- Deposit growth was 4.7% linked quarter annualized, slightly below initial expectations but expected to improve in the second half of the year.
- In 2Q 2025, Pinnacle Financial Partners reported revenue growth of 15.1% year-over-year, adjusted EPS growth of 22.7%, and tangible book value per share growth of 10.9%.
- Loans increased by 10.7% linked quarter annualized, exceeding initial expectations, with loan yield at 6.39%.
- Net charge-offs increased to 20 basis points from 16 basis points in the prior quarter, with reserves decreasing 2 basis points.
- Net interest income grew over 16% linked quarter annualized, with net interest margin (NIM) finishing at 3.23%, up 2 basis points from prior quarter.
- Allowance as a percentage of private education loan exposure remained stable at 5.95%.
- GAAP diluted EPS in the second quarter was $0.32 per share.
- Liquidity ratio ended at 17.8%, total risk-based capital at 12.8%, and common equity Tier 1 capital at 11.5%.
- Loan originations for the second quarter were $686 million, roughly in line with the same period last year and slightly below expectations.
- Net interest income was $377 million, up $5 million from the prior year quarter.
- Net interest margin was 5.31%, 4 basis points ahead of the prior quarter.
- Net private education loan charge-offs were $94 million, representing 2.36% of average loans in repayment, an increase of 17 basis points year-over-year, attributed primarily to disaster forbearance related to California wildfires.
- Noninterest expenses were $167 million, consistent with expectations.
- Private education loans delinquent 30 days or more were 3.5% of loans in repayment, a slight decrease from 3.6% in the prior quarter but higher than 3.3% a year ago.
- Provision for credit losses was $149 million, up from $17 million in the prior year quarter due to a more cautious macroeconomic outlook and increased weighted average life of the portfolio.
- Credit quality remains strong with nonperforming assets at 0.19% of total assets and net charge-offs at 3 basis points of loans.
- Deposits grew 4% annualized to $22 billion, with non-interest-bearing deposits increasing 5% annualized to 31% of total deposits.
- Loan portfolio grew by $258 million to $18.8 billion, a 6% annualized increase from prior quarter.
- Net income for Q3 2025 was $67.9 million or $0.57 per diluted share, up 29% from prior quarter and 33% year-over-year.
- Net interest income rose 9% sequentially to $225 million and 25% year-over-year.
- Net interest margin expanded to 3.39%, up 18 basis points sequentially and 56 basis points year-over-year, marking seven consecutive quarters of expansion.
- Non-interest expense increased 8% sequentially to $168 million, driven by acquisition-related costs.
- Pretax pre-provision net revenues for first nine months increased 45% to $250 million compared to prior year.
- Completed sale of 5 hotels for $83 million at an approximate 6% cap rate on 2024 NOI levels.
- GOP margin for the quarter was 46.3%, up 30 basis points from Q2 2024 despite flat RevPAR environment.
- Leverage reduced to 21%, with net debt to EBITDA at 3.5x as of June 30, 2025.
- Q2 2025 hotel EBITDA was $30.9 million, adjusted EBITDA was $28.5 million, and adjusted FFO was $0.36 per share.
- Repurchased approximately 20,000 shares at a weighted average price of $7.02 under a $25 million share buyback plan.
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