Allowance for credit losses decreased by $11.7 million; provision for credit losses was $6.1 million, including $6 million for net charge-offs and $2.2 million due to macroeconomic factors, offset by releases due to loan growth and recoveries.
Assets under management increased by $132.42 million to $3.1 billion, driven by higher market valuations and net new assets.
Classified loans increased by $9.3 million or 4.5% to $215.4 million due to downgrades in CRE and commercial loans, partially offset by $50 million in charge-offs, payoffs, and loans sold.
Core efficiency ratio was 66.35%, core ROA was 0.94%, and core ROE was 10.49%.
Gross loans were down by $30 million to $7.2 billion, primarily due to increased prepayments offsetting loan production and some loans originated but not yet funded.
Net interest income was $90.5 million, up $4.6 million, driven by higher average balances of securities and lower average balances and rates on time deposits.
Net interest margin (NIM) was 3.81%, higher than projected due to recovery of interest on commercial loans including a fully paid off nonaccrual loan and a fully charged off loan.
Noninterest income was $19.8 million, while noninterest expense was $74.4 million, higher than the guided $71.5 million due to noncore expenses and increased customer derivatives expenses.
Nonperforming loans decreased by $41 million due to payoffs, loans sold, paydowns, and charge-offs.
Pre-provision net revenue (PPNR) was $35.9 million in 2Q '25 compared to $33.9 million in 1Q '25; core PPNR was $37.1 million, up 17.7% from $31.5 million in 1Q '25.
Provision for credit losses was $6.1 million, down $12.4 million from $18.4 million in the first quarter.
Return on assets (ROA) improved to 0.90% and return on equity (ROE) to 10.1%, compared to 0.48% and 5.3% respectively in the prior quarter.
Total assets reached $10.3 billion as of the close of the second quarter.
Total deposits increased by $151.6 million to $8.3 billion, driven by growth in core deposits and a planned reduction of $51 million in broker deposits.
Total investment securities were $2 billion, up by $209.2 million, including $120 million mortgage-backed securities classified as trading securities and $87 million available for sale.
Cash NOI was lower primarily due to a one-time PENN 1 ground rent true-up payment and free rent associated with backfilling known move-outs.
Generated $1.5 billion of net proceeds from sales, financings, and the NYU deal, paid down $965 million of debt, and increased cash by $540 million, resulting in cash balances of $1.36 billion and total liquidity of $2.9 billion.
Lower net interest income from retail preferred repayments and lower NOI from asset sales were offset by lower real estate taxes at THE MART net of tenant reimbursements.
Net debt-to-EBITDA improved by 1.4 turns to 7.2x from 8.6x, and fixed charge coverage ratio is steadily rising.
New York office occupancy increased to 86.7% from 84.4% last quarter, mainly due to the full building master lease at 770 Broadway.
Second quarter comparable FFO was $0.56 per share, beating analyst consensus of $0.53 and essentially flat compared to last year's second quarter.
Asset and Wealth Management revenues were $3.8 billion, with management fees up 11% and private banking and lending revenues up 12%.
Assets under supervision reached a record $3.3 trillion, marking 30 consecutive quarters of long-term fee-based net inflows.
Capital position remains strong with a common equity Tier 1 ratio of 14.5%, and the board approved a 33% increase in quarterly dividend to $4 per share.
Firm-wide net interest income was $3.1 billion, with a loan portfolio of $217 billion and provision for credit losses of $384 million.
Global Banking and Markets segment generated $10.1 billion in revenues, with advisory revenues up 71% year over year and record equities financing revenues of $1.7 billion, a 23% increase year over year.
Goldman Sachs reported net revenues of $14.6 billion and earnings per share of $10.91 for Q2 2025, with a return on equity (ROE) of 12.8% for the quarter and 14.8% for the first half of the year.
Operating expenses totaled $9.2 billion, with a compensation ratio of 33% year to date and non-compensation expenses rising 6% year over year.
Dafinchi