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.
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