Expenses were better than expected in the first half, with full year expenses forecasted around $506 million, slightly better than original expectations.
Net income increased over 23% compared to the prior quarter driven by higher net interest and noninterest income, good expense control, and lower provision expense.
Net interest income was $163.6 million, up $3.1 million from prior quarter, with NIM at 3.11%, up 3 basis points.
Noninterest income was $54 million, benefiting from a few favorable items, with recurring noninterest income expected around $51 million per quarter.
Provision for credit losses was $4.5 million, with allowance for credit losses increasing to $167.8 million, coverage flat at 1.17% of total loans and leases.
Total deposits increased slightly, with public deposits up $166 million, offsetting declines in commercial and retail deposits.
Total loans increased about $59 million or 0.4%, mainly from a $125 million increase in dealer floor plan balances, offset by payoffs in commercial real estate construction loans.
Capital markets activity included a Fitch upgrade to BBB+ and a $450 million senior unsecured bond issuance at 5.25% coupon.
Cash same-store NOI growth for the quarter was 8.7%, driven by rental rate increases and contractual rent bumps, partially offset by lower average occupancy.
Guidance for full-year 2025 NAREIT FFO remains at a midpoint of $2.92 per share with a narrowed range of $2.88 to $2.96.
In-service occupancy at quarter end was 94.2%, down 110 basis points due to a known move-out and two developments entering service.
NAREIT funds from operations (FFO) were $0.76 per fully diluted share in 2Q 2025, up from $0.66 in 2Q 2024.
Overall cash rental rate increase for new and renewal leasing was 33%, or 38% excluding a large fixed-rate renewal.
Advisor and institutional businesses had flat sequential revenue growth as market appreciation in May and June offset April declines.
AUM and AUA grew sequentially and year-over-year, with AUM net flows roughly flat year-to-date, a significant improvement from prior year outflows.
Consolidated operating margins improved slightly year-over-year but declined sequentially due to onetime expenses and corporate overhead.
Excluding onetime items, adjusted EPS was $1.20, an increase from both the prior year and prior quarter.
Investment Managers revenue grew 8% year-over-year with double-digit growth in alternatives offsetting a 1% decline in traditional revenue due to mark-to-market weakness.
Margins declined sequentially due to investments in talent and technology, with Investment Managers margins impacted by hiring ahead of expected new business.
Private Banking revenue increased year-over-year and sequentially, supported by larger clients going live.
SEI reported EPS of $1.78 including significant onetime items totaling a $0.60 EPS impact, partially offset by $0.02 of expenses related to foreign currency losses and legal fees tied to the Stratos investment.
SEI returned significant capital to shareholders with buybacks exceeding $700 million on a trailing 12-month basis.
Dafinchi