- 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.
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- 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.
- Book value per share increased 26% year-to-date inclusive of dividends, driven by an 84 combined ratio and double-digit net investment income growth.
- Casualty segment premiums grew 8% with a 98 combined ratio, benefiting from favorable prior year reserve development and improved current accident year loss ratio.
- Expense ratio rose due to higher acquisition costs and investments in technology and personnel.
- Net earnings on a GAAP basis were $1.35 per share, up from $1.03 in Q3 2024.
- Property segment premiums declined 11% but posted a strong 60 combined ratio due to absence of hurricane losses and favorable reserve development.
- Surety premiums declined 3% for the quarter but commercial and transactional surety grew 53% year-to-date.
- Third quarter operating earnings of $0.83 per share, supported by solid underwriting and a 12% increase in investment income.
- Total combined ratio improved to 85.1% from 89.6% last year, reflecting a benign hurricane season.
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