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.
Asset quality remained strong with no net charge-offs, nonperforming assets steady at 0.19%, and classified loans showing a modest uptick.
Bridgewater reported strong revenue and balance sheet growth trends in Q2 2025, with net interest margin expanding by 11 basis points to 2.62%.
Expenses were well controlled with a slight increase due to FDIC insurance, charitable contributions, and marketing, resulting in an adjusted efficiency ratio of 51.5%.
Fee income reached record levels excluding one-time gains, including nearly $1 million in swap fee income and over $200,000 in investment advisory fees from the First Minnetonka City Bank acquisition.
Net interest income grew by $2.2 million during the quarter, driven by loan portfolio repricing and strong loan growth at a 12.5% annualized rate.
Noninterest income increased $773,000 or 37% excluding securities gain and FHLB prepayment income.
Tangible book value per share grew nearly 11% annualized year-to-date, with $1.6 million of common stock repurchased in Q2.
Dafinchi