Financial Data and Key Metrics Changes - The company generated $1.6 billion of net loan growth quarter-over-quarter, with a 19 basis point increase in net interest margin [4][5] - Net interest income was $331.6 million for the quarter, up approximately $41 million or 14% linked quarter [5] - Net income was approximately $128.4 million, up 22.6% from $104.7 million in the prior year's second quarter [8] - Diluted earnings per share increased to $2.22, representing a 23.3% year-over-year increase [8] Business Line Data and Key Metrics Changes - Total originations for investments, excluding single-family warehouse lending, were $5.6 billion, representing a 35% increase linked quarter [8] - Non-interest income increased by approximately $21 million quarter-over-quarter, driven by higher banking service fees and broker-dealer fee income [6] - Non-interest income from Verdant was approximately $18.9 million in the quarter [6] Market Data and Key Metrics Changes - Ending deposit balances were $23.2 billion, up 44.3% linked quarter and 16.5% year-over-year [9] - Average non-interest-bearing deposits were approximately $3.5 billion, compared to $3 billion in the prior quarter [10] - Total assets under custody or administration increased from $43 billion to $44.4 billion [17] Company Strategy and Development Direction - The company aims to generate loan growth in the low to mid-teens on an annual basis, with a focus on deepening relationships with existing vendors and accelerating growth in previously constrained verticals [12][20] - The integration of artificial intelligence across various business units is expected to enhance operational efficiency and innovation [18][19] - The acquisition of Verdant is seen as a strategic fit, contributing to the company's commercial lending franchise and expected to achieve EPS accretion [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong loan growth despite anticipated declines in net interest margin due to robust loan demand [27][28] - The company does not anticipate material losses from loans currently classified as non-performing [17] - Management highlighted the importance of a balanced growth strategy across various business lines to sustain long-term performance [35] Other Important Information - Non-interest expenses were approximately $184.6 million, with Verdant contributing $7.8 million in salaries and benefits expenses [23] - Provisions for credit losses increased to $25 million, driven by robust loan growth in commercial lending categories [25] - The company is focused on maintaining salaries and benefits expense growth at 30% of revenue growth or lower on an annual basis [23] Q&A Session Summary Question: What is the outlook for net interest margin? - Management confirmed a normalized level of 4.72% and expects a 5-6 basis point decline due to robust loan demand [27][28] Question: Can you discuss the pipeline for team liftouts? - Management indicated that they have successfully completed several team liftouts and are focused on developing those teams further [29] Question: What is the growth outlook for Verdant? - Management expects Verdant to achieve growth of approximately $150 million per quarter, with strong integration and cultural fit enhancing performance [52] Question: How is the company managing deposit growth? - Management noted that deposit growth was primarily driven by specialty deposits and commercial segments, with a balanced approach across various areas [41]

Core Insights - Safehold (SAFE) reported revenue of $97.68 million for Q1 2025, marking a year-over-year increase of 4.8% and exceeding the Zacks Consensus Estimate by 1.94% [1] - The company's EPS for the same quarter was $0.44, slightly up from $0.43 a year ago, with an EPS surprise of 2.33% over the consensus estimate [1] Financial Performance Metrics - Operating lease income was reported at $21.38 million, surpassing the average estimate of $20.68 million, reflecting a year-over-year increase of 1.8% [4] - Other income decreased to $4.30 million, below the average estimate of $4.93 million, representing a significant year-over-year decline of 35.2% [4] - Interest income from sales-type leases was $69.66 million, slightly above the average estimate of $69.35 million, with a year-over-year increase of 10.2% [4] - Interest income from related parties was reported at $2.33 million, slightly below the average estimate of $2.40 million, showing a year-over-year decrease of 1% [4] - The diluted net income per share was $0.41, compared to the estimated $0.43, indicating a shortfall against analyst expectations [4] Stock Performance - Over the past month, Safehold's shares have returned -6%, contrasting with the Zacks S&P 500 composite's increase of 11.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]