I downgraded Amalgamated Financial Corp. (NASDAQ: AMAL ) to a hold rating from my previous rating of buy in my report released in June 2025. Since then, the stock price has declined. I'm now expecting earningsAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ...

Core Insights - Amalgamated Bank successfully closed a nearly $1.7 million retroactive C-PACE financing for a redevelopment project in Nashville, utilizing Allectrify's FASTPACE platform [2][4]. Company Overview - Amalgamated Bank is a mission-driven full-service commercial bank and a leader in climate lending, focusing on socially responsible banking and empowering organizations aligned with sustainable practices [7]. - Allectrify provides a platform that simplifies C-PACE financing for lenders and borrowers, enabling quick and cost-effective access to capital for energy efficiency projects [8]. Project Details - The financed project involved a gut rehabilitation of an 80-plus year-old retail structure, which now houses several small businesses, including M.L. Rose Craft Beer & Burger [2][3]. - Improvements made in the project include LED lighting, high-efficiency HVAC systems, enhanced insulation, energy-efficient windows, and storm resiliency measures [3]. Financing Mechanism - C-PACE financing supports long-term, competitive financing for commercial property improvements focused on energy efficiency, renewable energy, resiliency, and water conservation [5]. - Amalgamated Bank's partnership with Allectrify enhances the efficiency of closing C-PACE projects, making it accessible for projects of all sizes [5][6].

Financial Data and Key Metrics Changes - The company reported net income of $26 million or $0.84 per diluted share, with core net income at $27 million or $0.88 per diluted share, reflecting solid performance [18] - Net interest income grew by 3.3%, reaching approximately $72.9 million, while the net interest margin held steady at 3.55% [18][19] - Tangible book value per share increased by $0.82 or 3.5% to $24.33, representing an 18% growth over the past four quarters [20] - Core return on average equity declined to 14.61% from 15.23% in the prior quarter, while core return on average assets decreased to 1.28% [20][21] Business Line Data and Key Metrics Changes - On-balance sheet deposits increased by $321 million or 4.3% to $7.7 billion, excluding $112.3 million of temporary pension funding deposits [22][24] - Loan growth was balanced at over $60 million across growth mode portfolios, with total loans receivable at $4.7 billion, reflecting a 0.8% increase compared to the previous quarter [25] - The multifamily loan portfolio increased by $34.2 million, while consumer loans and residential loans decreased by $11 million and $11.8 million, respectively [25] Market Data and Key Metrics Changes - Political deposits increased by $137 million or 13% to $1.2 billion, driven by fundraising activities ahead of midterm elections [7] - The not-for-profit segment also saw deposit growth of over $100 million, indicating a strong market presence [7] Company Strategy and Development Direction - The company is focused on organic growth in California, with plans to expand its presence in the state, particularly in the East Bay area [35][36] - A digital transformation initiative is underway, with a new platform expected to go live in the third quarter, aimed at improving productivity and customer insights [13] - The company aims to maintain a core efficiency ratio at approximately 52% while preparing for future growth beyond $10 billion in assets [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of 2025, citing a strong level of new customer acquisitions and a healthy pipeline of potential relationships [15] - The company maintains its full-year 2025 guidance for core pre-tax pre-provision earnings and net interest income, indicating confidence in achieving targets despite market challenges [31] Other Important Information - The company executed the largest share repurchase in its history, repurchasing approximately 327,000 shares worth $9.7 million [21] - The board authorized a dividend of $0.14 per common share to be paid in August, reflecting a commitment to returning capital to shareholders [21] Q&A Session Summary Question: Will the expansion in California be organic or involve M&A? - Management indicated that the expansion will primarily be organic, with opportunities in the LA area and East Bay [35][36] Question: What industry is the syndicated C&I credit related to, and what is the resolution timeline? - The credit is part of the commercial solar portfolio, and management is actively working on sourcing credit bids for resolution, but a timeline is uncertain [38][40] Question: Will provisioning run at a higher level due to pressures in multifamily or green energy? - Management stated that provisioning will be assessed on a case-by-case basis, and they feel comfortable with current reserves despite potential future pressures [41][42] Question: What is the outlook for net interest margin (NIM) and loan yields? - Management expects loan yields to improve in the upcoming quarters, with a potential for margin expansion in Q4 as political deposits ramp up [46][48] Question: What is the expected run rate for next quarter's expenses? - Expenses are expected to increase by approximately $3.5 million due to new hires and digital transformation costs, but management remains optimistic about revenue capabilities [50][52] Question: What are the long-term thoughts on dividend payout ratio? - The company targets a payout ratio of 20% to 25% and aims to increase dividends more frequently, reflecting a growth-oriented approach [53][54]

Financial Performance Highlights - Core net income reached $27 million in 2Q25[11] - Net interest income was $72.9 million in 2Q25[17] - The company's core return on average assets (ROAA) was 1.28% in 2Q25[24] - The core efficiency ratio was 49.21% in 2Q25[54] Deposit Portfolio - Total GAAP deposits reached $7.7 billion as of 2Q25[26] - Core deposits totaled $7.6 billion, with $1.2 billion in core political deposits[28] - Political deposits accounted for 15.6% of GAAP deposits[78] Loan Portfolio - Total loans amounted to $4.71 billion in 2Q25[45] - Mission-aligned loans constituted 86% of the total loan portfolio[47] - Pass-rated loans represented 97.9% of the loan portfolio[79] Investment Securities - Total investment securities book value was $3.5 billion[81] - Agency securities comprised 25.6% of the total investment securities portfolio[81] - Valuation loss as a percentage of the AFS portfolio was 2.4%[81] Capital and Equity - The tangible common equity (TCE) ratio was 8.60%[88] - Tangible book value (TBV) per share increased to $24.33[19]

Amalgamated Financial (AMAL) came out with quarterly earnings of $0.88 per share, missing the Zacks Consensus Estimate of $0.9 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.22%. A quarter ago, it was expected that this bank would post earnings of $0.88 per share when it actually produced earnings of $0.88, delivering no surprise.Over the last four quarters, the company has sur ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Amalgamated Financial Corp. achieved robust financial performance in Q2 2025, with growth in net income and core net income, strong deposit and loan growth, and stable net interest margin, while maintaining strong capital and continuing share repurchases to return value to shareholders - CEO Priscilla Sims Brown stated that a flexible banking model was key to achieving performance, creating reliability and predictability for shareholders, clients, and employees[6](index=6&type=chunk) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) The company achieved growth in both net income and core net income in Q2 2025, with stable diluted earnings per share Q2 2025 Financial Performance Overview | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Net Income | $26.0 million | $25.0 million | +$1.0 million | | Diluted EPS | $0.84 | $0.81 | +$0.03 | | Core Net Income | $27.0 million | $27.1 million | -$0.1 million | | Core Diluted EPS | $0.88 | $0.88 | No Change | [Deposits and Liquidity](index=1&type=section&id=Deposits%20and%20Liquidity) The company achieved significant deposit growth, with notable contributions from political deposits and a high proportion of non-interest-bearing deposits helping to control funding costs Q2 2025 Deposits and Liquidity Data | Metric | End of Q2 2025 | Change (QoQ) | | :--- | :--- | :--- | | On-Balance Sheet Deposits | $7.7 billion | +$321.2 million (+4.3%) | | Adjusted On-Balance Sheet Deposits (Excluding Temporary Pension Deposits) | $7.6 billion | +$208.9 million (+2.8%) | | Off-Balance Sheet Deposits | $41.4 million | - | | Political Deposits (On-Balance Sheet + Off-Balance Sheet) | $1.2 billion | +$136.5 million (+13%) | | Average Cost of Deposits | 162 bps | +3 bps | | Non-Interest-Bearing Deposits Share | 36% | - | [Assets and Margin](index=1&type=section&id=Assets%20and%20Margin) The company maintained a stable net interest margin and grew net interest income, with loan portfolio growth driven by commercial and multi-family residential loans Q2 2025 Assets and Margin Data | Metric | End of Q2 2025 | Change (QoQ) | | :--- | :--- | :--- | | Net Interest Margin (NIM) | 3.55% | No Change | | Net Interest Income | $72.9 million | +$2.3 million (+3.3%) | | Total Net Loans | $4.7 billion | +$35.5 million (+0.8%) | | Growth Loans (Commercial & Industrial, Commercial Real Estate, Multi-Family Residential) | - | +$60.8 million (+2.1%) | | Total PACE Assessments | $1.2 billion | +$16.3 million (+1.4%) | | Multi-Family and Commercial Real Estate Loan Portfolio as % of Risk-Weighted Capital | 202% | - | [Capital and Returns](index=1&type=section&id=Capital%20and%20Returns) The company maintained strong capital adequacy, achieved significant growth in tangible book value, and continued to return value to shareholders through share repurchases Q2 2025 Capital and Returns Data | Metric | End of Q2 2025 | Change (QoQ) | | :--- | :--- | :--- | | Common Equity Tier 1 Capital Ratio (CET1) | 14.13% | - | | Tier 1 Leverage Ratio | 9.22% | No Change | | Tangible Common Equity Ratio | 8.60% | -13 bps | | Tangible Book Value Per Share | $24.33 | +$0.82 (+3.5%) | | Core Return on Average Tangible Common Equity | 14.90% | - | | Core Return on Average Assets | 1.28% | - | | Share Repurchases (as of June 30) | Approx. 327,000 shares ($9.7 million) | - | | Remaining Repurchase Authorization | $30.3 million | - | [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) [Net Income and Core Net Income](index=2&type=section&id=Net%20Income%20and%20Core%20Net%20Income) Q2 2025 net income increased quarter-over-quarter, driven by higher non-core income from solar tax equity investments, increased net interest income, and reduced non-interest expense, while core net income slightly decreased but diluted EPS remained stable Net Income and Core Net Income Comparison (QoQ) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Net Income | $26.0 million | $25.0 million | +$1.0 million | | Diluted EPS | $0.84 | $0.81 | +$0.03 | | Core Net Income | $27.0 million | $27.1 million | -$0.1 million | | Core Diluted EPS | $0.88 | $0.88 | No Change | - Key drivers for net income growth included a **$2.6 million increase in non-core income** from solar tax equity investments, a **$2.3 million increase in net interest income**, and a **$1.1 million decrease in non-interest expense**[6](index=6&type=chunk) - Partially offsetting factors included a **$4.3 million increase in provision for credit losses**, the impact of a **$0.8 million net valuation gain** on residential loan sales in the prior quarter, and a **$0.4 million increase in losses** on sales of securities and other assets[6](index=6&type=chunk) [Net Interest Income and Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income increased quarter-over-quarter, driven by higher securities interest income and rising loan yields despite a decrease in average loan balances, while net interest margin remained stable due to higher average interest-bearing deposit balances Net Interest Income and Net Interest Margin Comparison (QoQ) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $72.9 million | $70.6 million | +$2.3 million | | Net Interest Margin (NIM) | 3.55% | 3.55% | No Change | - Loan interest income increased by **$0.9 million**, with loan yields rising by **5 basis points**, despite a **$35.6 million decrease** in average loan balances[8](index=8&type=chunk) - Securities interest income increased by **$2.0 million**, primarily due to a **$141.2 million increase** in average securities balances[8](index=8&type=chunk) - Interest expense on interest-bearing deposits increased by **$1.7 million**, primarily due to a **$201.0 million increase** in average interest-bearing deposit balances, while the cost of interest-bearing deposits remained unchanged[8](index=8&type=chunk) [Provision for Credit Losses](index=2&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses significantly increased quarter-over-quarter, primarily due to an increased provision for a syndicated commercial and industrial loan and changes in macroeconomic forecasts within the CECL model Provision for Credit Losses Comparison (QoQ) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Provision for Credit Losses | $4.9 million | $0.6 million | +$4.3 million | | Reason for Increase | Increased provision of **$2.3 million** for a syndicated commercial and industrial loan, and changes in macroeconomic forecasts within the CECL model (primarily related to the consumer solar loan portfolio) | - | - | [Non-Interest Income and Expense](index=2&type=section&id=Non-Interest%20Income%20and%20Expense) Non-interest income increased quarter-over-quarter, with core non-interest income slightly up due to higher commercial banking fees, while non-interest expense decreased, primarily driven by reduced professional service fees Non-Interest Income and Expense Comparison (QoQ) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Non-Interest Income | $8.0 million | $6.4 million | +$1.6 million | | Core Non-Interest Income | $9.3 million | $9.1 million | +$0.2 million | | Non-Interest Expense | $40.6 million | $41.7 million | -$1.1 million | | Core Non-Interest Expense | $40.4 million | $41.5 million | -$1.1 million | - The increase in non-interest income was primarily related to higher commercial banking fees, partially offset by a decrease in trust fees[11](index=11&type=chunk) - The decrease in non-interest expense was primarily driven by a **$1.5 million reduction** in professional service fees, partially offset by a **$0.4 million increase** in advertising expenses[12](index=12&type=chunk) [Income Tax Expense](index=2&type=section&id=Income%20Tax%20Expense) Income tax expense and effective tax rate slightly decreased quarter-over-quarter, primarily due to a discrete tax benefit from the revaluation of deferred tax assets following the implementation of California's single sales factor apportionment, with future rates expected to stabilize at 27.3% Income Tax Expense and Effective Tax Rate Comparison (QoQ) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | $9.5 million | $9.7 million | -$0.2 million | | Effective Tax Rate | 26.7% | 28.0% | -1.3% | | Adjusted Effective Tax Rate | 27.3% | 27.0% | +0.3% | - The implementation of California's single sales factor apportionment in the quarter led to an increase in the California state tax rate, but a discrete tax benefit recognized from the revaluation of deferred tax assets lowered the effective tax rate for the quarter[13](index=13&type=chunk)[14](index=14&type=chunk) - The future tax rate is expected to be **27.3%**[14](index=14&type=chunk) [Balance Sheet Overview](index=3&type=section&id=Balance%20Sheet%20Overview) [Total Assets](index=3&type=section&id=Total%20Assets) Total assets increased quarter-over-quarter as of June 30, 2025, aligning with quarterly targets after adjusting for temporary deposits, with changes primarily driven by increases in securities and net loans Total Assets Comparison (QoQ) | Metric | June 30, 2025 | March 31, 2025 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $8.6 billion | $8.3 billion | +$336.1 million (+4%) | | Adjusted Total Assets (Excluding Temporary Pension Deposits) | $8.5 billion | - | - | | Increase in Securities | - | - | +$177.6 million | | Increase in Net Loans | - | - | +$35.5 million | - The balance sheet at quarter-end was impacted by **$112.3 million** in temporary pension deposits, which were withdrawn the following day[15](index=15&type=chunk) [Loans Receivable](index=3&type=section&id=Loans%20Receivable) Net loans receivable increased slightly quarter-over-quarter as of June 30, 2025, driven by growth in multi-family, commercial and industrial, and commercial real estate portfolios, while criticized or classified loans also increased due to downgrades in several commercial and industrial loans Net Loans Receivable Portfolio Change (QoQ) | Metric | June 30, 2025 | March 31, 2025 | Change | | :--- | :--- | :--- | :--- | | Total Net Loans Receivable | $4.7 billion | $4.6775 billion | +$35.5 million (+0.8%) | | Multi-Family Residential Loans | - | - | +$34.2 million | | Commercial and Industrial Loans | - | - | +$13.5 million | | Commercial Real Estate Loans | - | - | +$13.1 million | | Consumer Solar Loans | - | - | -$11.0 million | | Residential Loans | - | - | -$11.8 million | | Criticized or Classified Loans | - | - | +$13.9 million | - The increase in criticized or classified loans was primarily due to the downgrade of four commercial and industrial loans (**$9.7 million**), one multi-family residential loan (**$2.8 million**), and small business loans (**$1.0 million**)[16](index=16&type=chunk) [Deposits](index=3&type=section&id=Deposits) On-balance sheet deposits grew significantly quarter-over-quarter as of June 30, 2025, with strong contributions from political deposits and a high proportion of non-interest-bearing deposits, while uninsured deposits accounted for half of total deposits Deposit Portfolio Overview (QoQ) | Metric | June 30, 2025 | March 31, 2025 | Change | | :--- | :--- | :--- | :--- | | Total On-Balance Sheet Deposits | $7.7 billion | $7.412 billion | +$321.2 million (+4.3%) | | Political Deposits (Including Off-Balance Sheet) | $1.2 billion | - | +$136.5 million | | Non-Interest-Bearing Deposits as % of Average Total Deposits | 38% | - | - | | Non-Interest-Bearing Deposits as % of Period-End Total Deposits | 36% | - | - | | Average Cost of Deposits | 162 bps | - | - | | Super-Core Deposits | Approx. $4.2 billion (54% of total deposits) | - | - | | Uninsured Deposits | $3.9 billion (50% of total deposits) | - | - | [Nonperforming Assets](index=3&type=section&id=Nonperforming%20Assets) Total nonperforming assets slightly increased quarter-over-quarter as of June 30, 2025, primarily driven by an increase in residential non-accrual loans, but remained stable as a percentage of period-end total assets Nonperforming Assets Comparison (QoQ) | Metric | June 30, 2025 | March 31, 2025 | Change | | :--- | :--- | :--- | :--- | | Total Nonperforming Assets | $35.2 million | $33.9 million | +$1.3 million | | Nonperforming Assets as % of Period-End Total Assets | 0.41% | 0.41% | No Change | | Increase in Residential Non-Accrual Loans | - | - | +$2.4 million | [Allowance for Credit Losses](index=4&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for credit losses on loans increased this quarter, primarily due to an increased provision for a commercial and industrial loan and changes in macroeconomic forecasts within the CECL model, with the situation of the involved consumer loan originator still developing Allowance for Credit Losses Comparison (QoQ) | Metric | June 30, 2025 | March 31, 2025 | Change | | :--- | :--- | :--- | :--- | | Allowance for Credit Losses on Loans | $59.0 million | $57.7 million | +$1.3 million | | Allowance as % of Total Loans | 1.25% | 1.23% | +2 bps | | Increased Provision for a Commercial and Industrial Loan | - | - | +$2.3 million | - The exposure to this commercial and industrial loan increased to **$9.3 million** (as of June 30) through DIP financing and further to **$10.8 million** as of the earnings release date, with its subsequent treatment potentially leading to further provisions[19](index=19&type=chunk) [Capital and Shareholder Returns](index=4&type=section&id=Capital%20and%20Shareholder%20Returns) [Capital Ratios](index=4&type=section&id=Capital%20Ratios) As of June 30, 2025, the company's capital ratios remained strong, with a slight decrease in Common Equity Tier 1 and Total Risk-Weighted Capital Ratios, while the Tier 1 Leverage Capital Ratio remained stable Capital Ratios Comparison (QoQ) | Metric | June 30, 2025 | March 31, 2025 | Change | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 Capital Ratio (CET1) | 14.13% | 14.27% | -0.14% | | Total Risk-Weighted Capital Ratio | 16.43% | 16.61% | -0.18% | | Tier 1 Leverage Capital Ratio | 9.22% | 9.22% | No Change | [Stockholders' Equity and Tangible Book Value](index=4&type=section&id=Stockholders%27%20Equity%20and%20Tangible%20Book%20Value) Stockholders' equity increased this quarter, driven by net income and an improvement in accumulated other comprehensive loss, partially offset by share repurchases and dividend payments, with tangible book value per share continuing to grow Stockholders' Equity and Tangible Book Value Comparison (QoQ) | Metric | June 30, 2025 | March 31, 2025 | Change | | :--- | :--- | :--- | :--- | | Stockholders' Equity | $754.0 million | $736.0 million | +$18.0 million | | Tangible Book Value Per Share | $24.33 | $23.51 | +$0.82 | | Tangible Common Equity as % of Tangible Assets | 8.60% | 8.73% | -0.13% | - Stockholders' equity growth was primarily driven by **$26.0 million in net income** and a **$4.3 million improvement** in accumulated other comprehensive loss this quarter, partially offset by **$9.7 million in share repurchases** and **$4.4 million in dividend payments**[20](index=20&type=chunk) [Share Repurchase Program](index=1&type=section&id=Share%20Repurchase%20Program) The company continues to execute its share repurchase program, having repurchased approximately 327,000 shares by the end of June, with ample remaining authorization Share Repurchase Program Overview | Metric | As of June 30, 2025 | | :--- | :--- | | Number of Common Shares Repurchased | Approx. 327,000 shares | | Amount of Common Shares Repurchased | $9.7 million | | Remaining Repurchase Authorization | $30.3 million | - The company has additionally repurchased approximately **74,000 shares** from July 1 to July 22[5](index=5&type=chunk) [Company Information & Disclosures](index=4&type=section&id=Company%20Information%20%26%20Disclosures) [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) The company has scheduled a conference call for July 24, 2025, to discuss Q2 2025 results, with replay and webcast options available - The conference call was held on July 24, 2025, at 11:00 AM ET, accessible by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international)[22](index=22&type=chunk) - A telephone replay and webcast are available on the company's investor relations website[22](index=22&type=chunk)[23](index=23&type=chunk) [About Amalgamated Financial Corp.](index=5&type=section&id=About%20Amalgamated%20Financial%20Corp.) Amalgamated Financial Corp. is a Delaware public benefit corporation and bank holding company, providing commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank, a full-service commercial bank and chartered trust company founded in 1923 with a broad commercial and retail client base, actively participating in the Global Alliance for Banking on Values and B Corp certification - Amalgamated Bank was founded in 1923 by the Amalgamated Clothing Workers of America, one of the oldest labor unions in the United States[24](index=24&type=chunk) - As of June 30, 2025, total assets were **$8.6 billion**, total net loans were **$4.7 billion**, and total deposits were **$7.7 billion**[24](index=24&type=chunk) - The trust business held **$36.5 billion** in custody assets and **$15.6 billion** in assets under management[24](index=24&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This report utilizes several non-GAAP financial measures, such as 'core operating revenue,' 'core net income,' and 'tangible common equity,' which management believes are useful for comparing operating performance and evaluating company results, emphasizing that non-GAAP metrics should not be viewed in isolation and providing reconciliation tables to the most comparable GAAP measures - Management uses non-GAAP measures to compare operating results across periods and to develop internal projections[25](index=25&type=chunk) - Non-GAAP financial information should not be considered in isolation or as a substitute for GAAP financial measures[26](index=26&type=chunk) - Reconciliation tables of non-GAAP financial disclosures to comparable GAAP measures are provided at the end of the report[26](index=26&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially, including banking conditions, credit losses, deposit flows, interest rate fluctuations, regulatory changes, and cybersecurity risks, with no obligation to update or revise any forward-looking statements - Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from expectations[36](index=36&type=chunk) - Risks and uncertainties include, but are not limited to: uncertainties in banking and economic conditions, deterioration in borrower financial condition, deposit outflows, interest rate fluctuations, real estate market conditions, regulatory reforms, changes in trade policies, legal proceedings, loan portfolio concentrations, inaccurate estimates of allowance for credit losses, operational or security system failures, and climate change-related risks[36](index=36&type=chunk)[38](index=38&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements, except as required by law[39](index=39&type=chunk) [Financial Statements & Supplementary Data](index=9&type=section&id=Financial%20Statements%20%26%20Supplementary%20Data) [Consolidated Statements of Income](index=9&type=section&id=Consolidated%20Statements%20of%20Income) This section presents Amalgamated Financial Corp.'s unaudited consolidated statements of income, providing detailed financial performance data for Q2 2025, Q1 2025, Q2 2024, and the first half of 2025 Consolidated Statements of Income (Unaudited) | (USD thousands) | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Interest and Dividend Income | 104,099 | 100,690 | 98,961 | 204,789 | 195,895 | | Interest Expense | 31,190 | 30,113 | 29,769 | 61,303 | 58,666 | | Net Interest Income | 72,909 | 70,577 | 69,192 | 143,486 | 137,229 | | Provision for Credit Losses | 4,890 | 595 | 3,161 | 5,486 | 4,749 | | Non-Interest Income | 8,025 | 6,406 | 9,258 | 14,430 | 19,487 | | Non-Interest Expense | 40,584 | 41,650 | 39,512 | 82,234 | 77,664 | | Income Tax Expense | 9,471 | 9,709 | 9,024 | 19,179 | 20,301 | | Net Income | 25,989 | 25,028 | 26,753 | 51,017 | 54,002 | | Basic Earnings Per Share | $0.85 | $0.82 | $0.88 | $1.67 | $1.77 | | Diluted Earnings Per Share | $0.84 | $0.81 | $0.87 | $1.65 | $1.75 | [Consolidated Statements of Financial Condition](index=10&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) This section presents Amalgamated Financial Corp.'s unaudited consolidated statements of financial condition, detailing assets, liabilities, and stockholders' equity as of June 30, 2025, March 31, 2025, and December 31, 2024 Consolidated Statements of Financial Condition (Unaudited) | (USD thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and Due from Banks | 171,066 | 65,714 | 60,749 | | Securities | 3,457,962 | 3,280,391 | 3,215,263 | | Net Loans Receivable | 4,655,346 | 4,619,830 | 4,612,838 | | Other Assets | 336,964 | 319,292 | 368,042 | | **Total Assets** | **8,621,338** | **8,285,227** | **8,256,892** | | **Liabilities** | | | | | Deposits | 7,733,272 | 7,412,072 | 7,180,605 | | Borrowings | 75,457 | 69,676 | 314,409 | | Other Liabilities | 58,625 | 67,483 | 54,224 | | **Total Liabilities** | **7,867,354** | **7,549,231** | **7,549,238** | | **Stockholders' Equity** | | | | | Total Stockholders' Equity | 753,984 | 735,996 | 707,654 | | **Total Liabilities and Stockholders' Equity** | **8,621,338** | **8,285,227** | **8,256,892** | [Select Financial Data & Ratios](index=11&type=section&id=Select%20Financial%20Data%20%26%20Ratios) This section provides selected financial ratios and key performance indicators, including earnings per share, book value, capital ratios, asset quality ratios, and liquidity ratios, reflecting the company's operational and financial health for Q2 2025 and prior periods Select Financial Ratios and Data | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Diluted EPS | $0.84 | $0.81 | $0.87 | | Tangible Book Value Per Share (Non-GAAP) | $24.33 | $23.51 | $20.61 | | Return on Average Assets | 1.23% | 1.22% | 1.30% | | Core Return on Average Tangible Common Equity (Non-GAAP) | 14.90% | 15.54% | 17.34% | | Net Interest Margin | 3.55% | 3.55% | 3.46% | | Efficiency Ratio | 50.14% | 54.10% | 50.37% | | Nonperforming Loans as % of Total Loans | 0.74% | 0.70% | 0.78% | | Common Equity Tier 1 Capital Ratio | 14.13% | 14.27% | 13.48% | [Loan and PACE Assessments Portfolio Composition](index=13&type=section&id=Loan%20and%20PACE%20Assessments%20Portfolio%20Composition) This section details the company's loan and PACE (Property Assessed Clean Energy) assessment portfolio composition, including breakdowns of commercial and retail loans and the distribution of various PACE assessment types, as of June 30, 2025, March 31, 2025, and June 30, 2024 Loan Portfolio Composition (USD thousands) | Loan Type | June 30, 2025 (Amount) | June 30, 2025 (%) | March 31, 2025 (Amount) | June 30, 2024 (Amount) | | :--- | :--- | :--- | :--- | :--- | | Commercial and Industrial | $1,196,804 | 25.4% | $1,183,297 | $1,012,400 | | Multi-Family Residential | $1,406,193 | 29.8% | $1,371,950 | $1,230,545 | | Commercial Real Estate | $422,068 | 9.0% | $409,004 | $377,484 | | Residential Real Estate Loans | $1,292,013 | 27.4% | $1,303,856 | $1,404,624 | | Consumer Solar | $345,604 | 7.3% | $356,601 | $385,567 | | **Total Loans** | **$4,714,344** | **100.0%** | **$4,677,506** | **$4,471,839** | | **Total PACE Assessments** | **$1,216,124** | **100.0%** | **$1,199,854** | **$1,168,147** | [Net Interest Income Analysis](index=14&type=section&id=Net%20Interest%20Income%20Analysis) This section provides a detailed analysis of the company's net interest income, including average balances, income/expense, and yields/costs for interest-earning assets and interest-bearing liabilities, covering Q2 2025, Q1 2025, Q2 2024, and the first half of 2025 Net Interest Income Analysis (USD thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | | **Interest-Earning Assets** | | | | | Average Balance | 8,236,065 | 8,067,344 | 8,052,067 | | Income | 104,099 | 100,690 | 98,961 | | Yield | 5.07% | 5.06% | 4.94% | | **Interest-Bearing Liabilities** | | | | | Average Balance | 4,752,196 | 4,609,809 | 4,201,069 | | Expense | 31,190 | 30,113 | 29,769 | | Cost Rate | 2.63% | 2.65% | 2.85% | | **Net Interest Income** | **72,909** | **70,577** | **69,192** | | **Net Interest Margin** | **3.55%** | **3.55%** | **3.46%** | [Deposit Portfolio Composition](index=16&type=section&id=Deposit%20Portfolio%20Composition) This section provides a detailed breakdown of the company's deposit portfolio, including period-end balances, average balances, and average cost rates for different deposit types, covering Q2 2025, Q1 2025, and Q2 2024 Deposit Portfolio Composition (USD thousands) | Deposit Type | June 30, 2025 (Period-End Balance) | June 30, 2025 (Average Balance) | June 30, 2025 (Average Cost Rate) | | :--- | :--- | :--- | :--- | | Non-Interest-Bearing Demand Deposits | $2,810,489 | $2,895,845 | 0.00% | | NOW Accounts | $177,494 | $177,312 | 0.68% | | Money Market Deposits | $4,216,318 | $3,950,346 | 2.70% | | Savings Accounts | $330,892 | $329,962 | 1.32% | | Time Deposits | $198,079 | $218,835 | 3.22% | | **Total Deposits** | **$7,733,272** | **$7,572,300** | **1.63%** | [Asset Quality & Credit Quality](index=17&type=section&id=Asset%20Quality%20%26%20Credit%20Quality) This section provides detailed data on the company's asset and credit quality, including the composition of nonperforming assets, non-accrual loans, criticized and classified loans, their ratios to total loans, annualized net charge-off rates, and allowance for credit losses as a percentage of total loans Nonperforming Assets and Non-Accrual Loans (USD thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Nonperforming Assets | $35,165 | $33,940 | $35,720 | | Total Non-Accrual Loans | $34,700 | $32,944 | $34,702 | | Commercial and Industrial Non-Accrual Loans | $12,501 | $12,786 | $8,428 | | Residential Real Estate Non-Accrual Loans | $3,805 | $1,375 | $7,756 | | Consumer Solar Non-Accrual Loans | $3,193 | $3,479 | $2,794 | Criticized and Classified Loans and Credit Quality Ratios | Metric | June 30, 2025 | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Criticized and Classified Loans | $97,828 | $83,855 | $94,536 | | Criticized and Classified Loans as % of Total Loans | 2.07% | 1.79% | 2.12% | | Annualized Net Charge-Offs as % of Average Loans | 0.30% | 0.22% | 0.25% | | Allowance for Credit Losses as % of Total Loans | 1.25% | 1.23% | 1.42% | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=19&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliation tables of GAAP to non-GAAP financial measures, such as core operating revenue, core non-interest expense, core net income, tangible common equity, and average tangible common equity, to facilitate investor understanding of the company's reported non-GAAP performance Reconciliation of GAAP to Non-GAAP Financial Measures (USD thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income (GAAP) | $72,909 | $70,577 | $69,192 | | Non-Interest Income (GAAP) | $8,025 | $6,406 | $9,258 | | **Core Operating Revenue (Non-GAAP)** | **$82,183** | **$79,685** | **$77,691** | | Non-Interest Expense (GAAP) | $40,584 | $41,650 | $39,512 | | **Core Non-Interest Expense (Non-GAAP)** | **$40,442** | **$41,525** | **$39,468** | | Net Income (GAAP) | $25,989 | $25,028 | $26,753 | | **Core Net Income (Non-GAAP)** | **$27,009** | **$27,124** | **$26,218** | | Stockholders' Equity (GAAP) | $753,984 | $735,996 | $646,112 | | **Tangible Common Equity (Non-GAAP)** | **$739,848** | **$721,717** | **$631,191** | | Average Stockholders' Equity (GAAP) | $741,435 | $722,380 | $623,024 | | **Average Tangible Common Equity (Non-GAAP)** | **$727,229** | **$708,031** | **$608,014** |

Core Insights - Amalgamated Financial Corp. reported a net income of $26.0 million, or $0.84 per diluted share, for the second quarter of 2025, reflecting a slight increase from $25.0 million, or $0.81 per diluted share, in the prior quarter [6][7] - The Common Equity Tier 1 Capital Ratio stood at 14.13%, while the Tangible Book Value per Share increased to $24.33, marking a 3.5% rise from the previous quarter [21][22] Financial Performance - Core net income was $27.0 million, or $0.88 per diluted share, compared to $27.1 million, or $0.88 per diluted share, in the prior quarter [8] - Net interest income grew by $2.3 million, or 3.3%, to $72.9 million, driven by an increase in loan interest income and securities [9] - Non-interest income increased to $8.0 million from $6.4 million in the prior quarter, with core non-interest income rising to $9.3 million [12] Deposits and Loans - Total on-balance sheet deposits increased by $321.2 million, or 4.3%, to $7.7 billion, with political deposits rising by 13% to $1.2 billion [18] - Net loans receivable increased by $35.5 million, or 0.8%, to $4.7 billion, with significant growth in multifamily and commercial real estate loans [17] Capital and Returns - The Tier 1 leverage ratio remained constant at 9.22%, while the tangible common equity ratio decreased to 8.60% due to a larger balance sheet [21][22] - The company repurchased approximately 327,000 shares, totaling $9.7 million, with $30.3 million remaining under the share repurchase program [6] Balance Sheet Summary - Total assets reached $8.6 billion, a 4% increase from the previous quarter, with notable increases in securities and net loans receivable [15] - Stockholders' equity grew by $18.0 million during the quarter, primarily driven by net income and improvements in accumulated other comprehensive loss [21]

Core Points - Amalgamated Financial Corp. will release its second quarter 2025 financial results on July 24, 2025, before market open [1] - A conference call to discuss the financial results will take place at 11:00 a.m. Eastern Time on the same day [1] - Investors can participate in the call by dialing the provided numbers approximately 10 minutes prior to the start [2] Company Overview - Amalgamated Financial Corp. is a Delaware public benefit corporation and bank holding company, operating through its subsidiary, Amalgamated Bank [4] - Amalgamated Bank is a full-service commercial bank with a network of five branches in New York City, Washington D.C., and San Francisco, and a commercial office in Boston [4] - As of March 31, 2025, Amalgamated Financial Corp. reported total assets of $8.3 billion, total net loans of $4.6 billion, and total deposits of $7.4 billion [4] - The trust business held $35.7 billion in assets under custody and $14.2 billion in assets under management as of the same date [4]

Core Insights - Amalgamated Financial Corp. has appointed two new board members, Steven SaLoutos and Tony Wells, to enhance its Board of Directors and Amalgamated Bank's governance [1][2] Group 1: New Board Members - Steven SaLoutos has a 38-year career in banking, previously serving as Executive Vice President at U.S. Bank, and is currently the CFO of ProSight Financial Association [2][3] - Tony Wells has nearly four decades of executive experience in regulated industries, currently a Venture Partner at AZ-VC, and has held senior roles at Verizon and USAA [4][5] Group 2: Company Overview - Amalgamated Financial Corp. is a Delaware public benefit corporation and bank holding company, operating through Amalgamated Bank, which has a network of five branches in major U.S. cities [6] - As of March 31, 2025, Amalgamated Bank reported total assets of $8.3 billion, total net loans of $4.6 billion, and total deposits of $7.4 billion, with a trust business holding $35.7 billion in assets under custody and $14.2 billion in assets under management [6]

Company Overview - Amalgamated Financial has a market capitalization of $935.4 million, indicating a solid position in the financial sector [1]. Industry Insights - Crude Value Insights focuses on investment opportunities in the oil and natural gas sector, emphasizing cash flow generation as a key factor for value and growth prospects [1]. - The service offers subscribers access to a 50+ stock model account, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [2].