- 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.
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- Average annualized loan growth was 5.3%, with average total deposits growing to over $37 billion.
- Capital ratios improved with CET1 ratio approaching 11%, tangible common equity at 8.5%, and tangible book value per share up 13% year-over-year to $11.14.
- Credit quality improved with total delinquency at 62 basis points, down 13 bps, and net charge-offs at 25 bps for the quarter.
- Efficiency ratio remained favorable at 54.8%.
- Linked-quarter revenue growth was 6.5%, driven by record net interest income of $347 million and noninterest income of $91 million.
- Net income available to common shareholders was $130.7 million, or $0.36 per share, in Q2 2025.
- Net interest margin expanded 16 basis points to 3.19%, the highest since Q4 2023.
- Noninterest income reached a record $91 million, more than doubling over the last 10 years.
- Operating noninterest expense was $246.2 million, with increases due to strategic hiring, technology investments, and mortgage down payment assistance program costs.
- Pre-provision net revenue rose 16% from prior quarter to $192 million.
- Provision expense was $24.9 million, supporting loan growth and charge-offs.
- Return on average tangible common equity was 14%.
- Capital ratios increased: CET1 at 10.2%, TCE at 8.06%, both up year-over-year and sequentially.
- Commercial & Industrial (C&I) loans grew over $700 million year-to-date, driving loan growth.
- Efficiency ratio improved to below 56%, the lowest since early 2023.
- Net interest income (NII) reached a record $300 million, up 17% year-over-year.
- Net interest margin (NIM) expanded to 3.04%, up 29 basis points year-over-year and 7 basis points sequentially.
- Nonaccrual loans decreased 16%, net charge-offs were 17 basis points, and provision expense was $18 million.
- Noninterest expense was $209 million, slightly down from prior quarter, driving positive operating leverage.
- Noninterest income was $67 million, up 3% year-over-year and 14% sequentially.
- Reported earnings of $0.65 per share in Q2 2025.
- Return on tangible common equity (ROATCE) improved to 12.96%, up 62 basis points from Q1.
- Total loans grew 1% quarter-over-quarter and 3% year-over-year, or nearly 6% adjusted for loan sale.
- 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.
- All rent payments are current from tenants despite the increased provision for credit losses.
- Operating expenses increased by $65.6 million primarily due to a noncash provision for credit losses based on a more pessimistic economic forecast.
- Record year-over-year revenue, AFFO, and adjusted EBITDA were achieved in the quarter.
- Rent coverage ratios ranged from 1.69 to 2.72x on master leases as of the prior quarter end.
- Total income from real estate for Q2 2025 exceeded Q2 2024 by over $14 million, driven by cash rent increases of over $22 million from acquisitions and escalations.
- Adjusted non-GAAP earnings excluding significant variances were $469 million or $2.07 per share, an 18% increase in EPS over 2024.
- Life insurance sales were strong with record nonqualified sales, but pretax operating earnings declined due to higher mortality.
- Net cash flow was negative $2.6 billion in the quarter, an improvement sequentially driven by positive net cash flow from global institutional clients.
- Non-GAAP operating ROE, excluding AAR, was 14.9%, improving 170 basis points compared to the year-ago period.
- Principal Asset Management sales were $33 billion, up 19% over the prior year quarter.
- Reported non-GAAP operating earnings were $489 million, up 27% year over year, and EPS was $2.16, up 33%.
- Retirement Solutions sales were $6 billion, up 7% year over year.
- Revenue growth, strong margin and expense discipline supported results, alongside a lower effective tax rate and share repurchases.
- Second quarter reported net income excluding exited business was $432 million with minimal credit losses of $17 million.
- Specialty Benefits earnings grew 10% with margin expansion of 100 basis points.
- Total company managed AUM reached $753 billion, a 5% increase over the sequential quarter and 8% over 2024.
Dafinchi