Core Insights - Amalgamated Bank successfully closed a C-PACE financing deal under the Massachusetts Program, utilizing Allectrify's FASTPACE Platform [1][5] - The financing will support a 205kW solar PV installation and roofing upgrades at an industrial property owned by Marder Seafood, a leader in sustainably sourced seafood [2][4] - The project is expected to generate over $1.9 million in lifetime energy cost savings [4] Company Overview - Amalgamated Bank invests nearly 40% of its lending portfolio in climate protection solutions, emphasizing its commitment to decarbonization and renewable energy [3][6] - The bank has over $1.2 billion in PACE assets in its investment portfolio, positioning itself as a leader in providing energy-saving financing solutions [6] - Amalgamated Bank operates a mission-driven model, focusing on sustainable companies, clean energy, and nonprofits since its founding in 1923 [7] Industry Context - C-PACE financing provides long-term, competitive funding for energy efficiency and renewable energy improvements in commercial properties [5] - The recent transaction marks the fourth financing closed under the Massachusetts C-PACE Program since its inception in 2020 [5] - Allectrify's FASTPACE platform facilitates efficient C-PACE execution, enabling access to financing for projects of various sizes [8]

Core Insights - Amalgamated Bank has successfully closed a $15 million commitment as part of a nearly $1 billion financing for Greenbacker Renewable Energy Company's "Cider" solar farm, which is the largest solar project in New York State [1][2][3] Company Overview - Greenbacker Renewable Energy Company LLC focuses on acquiring and managing income-producing renewable energy projects, including solar and wind farms, and provides asset management services [5] - Amalgamated Bank is a mission-driven commercial bank based in New York, offering a range of banking products and services while emphasizing social responsibility and sustainable practices [6] Project Details - The Cider solar farm is located on approximately 2,500 acres in Genesee County, New York, and is expected to generate enough clean electricity to power over 120,000 homes annually by the end of 2026 [2][3] - The project is anticipated to create hundreds of clean energy jobs and is part of Greenbacker's commitment to building a resilient energy system in New York [3][4] Environmental Impact - Since 2016, Greenbacker's portfolio has produced over 12 million megawatt-hours of clean energy and has abated more than 8 million metric tons of carbon, highlighting its commitment to energy transition investments [4]

Company Overview - Amalgamated Financial Corp. (AMAL) is experiencing significant attention in the options market, particularly with the Aug 15, 2025 $25 Call option showing high implied volatility, indicating expectations of a substantial price movement [1] Implied Volatility Insights - Implied volatility reflects market expectations for future price movements, suggesting that investors anticipate a significant shift in Amalgamated Financial's stock price, potentially due to an upcoming event [2] Analyst Sentiment - Currently, Amalgamated Financial holds a Zacks Rank 3 (Hold) within the Financial - SBIC & Commercial Industry, which is positioned in the bottom 17% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while one analyst has lowered the estimate, resulting in a decrease of the Zacks Consensus Estimate from 91 cents per share to 90 cents [3] Trading Strategy Implications - The high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on options with elevated implied volatility, aiming to benefit from the decay of the option's value [4]

Financial Performance - Net income for Q1 2025 was $25.0 million, or $0.81 per diluted share, compared to $27.2 million, or $0.89 per diluted share for Q1 2024, reflecting a decrease of $2.2 million [159]. - Net interest income for Q1 2025 was $70.6 million, a 3.8% increase from $68.0 million in Q1 2024 [163]. - The company experienced a $3.8 million decrease in non-interest income and a $3.5 million increase in non-interest expense in Q1 2025 [159]. - Non-interest income decreased to $6.4 million in Q1 2025, down from $10.2 million in Q1 2024, primarily due to a $4.6 million decrease in income from equity investments [173]. - Non-interest expense rose to $41.7 million in Q1 2025, an increase of $3.5 million from $38.2 million in Q1 2024 [175]. - The effective tax rate for Q1 2025 was 28.0%, compared to 29.2% in Q1 2024 [176]. Assets and Liabilities - As of March 31, 2025, total assets were $8.29 billion, total loans net of allowance for credit losses were $4.62 billion, total deposits were $7.41 billion, and stockholders' equity was $736.0 million [139]. - Total assets increased to $8.29 billion as of March 31, 2025, compared to $8.26 billion at December 31, 2024 [177]. - Total deposits grew to $7.41 billion at March 31, 2025, compared to $7.18 billion at December 31, 2024 [215]. - The total available for sale securities amounted to $1.71 billion, an increase from $1.63 billion at December 31, 2024, representing a growth of approximately 4.9% [181]. - The total securities portfolio was valued at $3.28 billion as of March 31, 2025, compared to $3.22 billion at December 31, 2024, marking an increase of approximately 2.0% [189]. - The held-to-maturity securities portfolio was valued at $1.57 billion as of March 31, 2025, slightly down from $1.59 billion at December 31, 2024, indicating a decrease of about 1.3% [181]. Loans and Credit Quality - Total loans, net of deferred origination fees and costs, were $4.62 billion as of March 31, 2025, compared to $4.61 billion at December 31, 2024, reflecting a marginal increase [192]. - The allowance for credit losses decreased to $57.7 million, representing 1.23% of total loans, down from 1.29% at December 31, 2024 [205]. - Nonperforming assets increased to $33.940 million, or 0.41% of total assets, as of March 31, 2025, compared to $25.870 million, or 0.31% of total assets, at December 31, 2024 [209]. - The net charge-offs for the quarter were $2.58 million, compared to $2.18 million in the same period last year [205]. - The commercial loan portfolio represented 63.8% of the total loan portfolio, increasing from 63.3% at the end of 2024 [194]. Investment and Strategy - The company’s investment strategy includes a significant portion in U.S. GSE obligations, which helps minimize credit risk through diversification and concentration limits [179]. - The company focuses on C&I, multifamily, and CRE lending within its commercial loan portfolio as part of its strategic growth plan [192]. - Approximately 82% of the non-agency securities in the portfolio carry AAA credit ratings, while 18% carry A credit ratings or higher, indicating a strong credit quality [191]. Capital and Liquidity - Total stockholders' equity increased to $736.0 million at March 31, 2025, up from $707.7 million at December 31, 2024, driven by $25.0 million of net income [232]. - The company maintained sufficient liquidity to meet capital and debt service obligations for 24 months without subsidiary dividends and for 12 months under adverse conditions [227]. - Total capital to risk-weighted assets ratio was 16.61% as of March 31, 2025, exceeding the minimum requirement of 8.00% [236]. - The company had $3.32 billion in immediately available funds, covering 94% of total uninsured deposits [231]. Corporate Social Responsibility - The company has obtained B Corporation certification, indicating a commitment to social and environmental performance [142]. - The company is a member of the Global Alliance for Banking on Values, promoting positive change in the banking sector [142].

Financial Performance Highlights - Core net income was $27.1 million[11], with core EPS at $0.88[13] - Net interest income reached $70.6 million[15] - Net interest margin stood at 3.55%[17], a 4 bps increase[16] Deposit Portfolio - Total GAAP deposits amounted to $7.4 billion[24], with a deposit growth of $231.5 million[14] - Total core deposits reached $7.6 billion[26] - Political deposits totaled $1.07 billion[26] Loan Portfolio - Total loans amounted to $4.68 billion[48], with a loan yield of 5.00%[48] - Mission-aligned loans constituted 87% of the portfolio[50] Asset Quality - Non-performing assets represented 0.41% of total assets[150] - Quarterly net charge-offs were 0.22% of average loans[77] Capital Ratios - Leverage ratio was 9.22%[19] - TCE (Tangible Common Equity) ratio increased to 8.73%[21]

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $25 million or $0.81 per diluted share, while core net income was $27.1 million or $0.88 per diluted share, reflecting the sustainability of earnings [24][25] - Core earnings per share was $0.88, supported by net interest income of $70.6 million, which was within the guidance range [12][24] - The tangible book value per share increased by 4% to $23.51, while core revenue per diluted share decreased by $0.10 to $2.57 [26] - The CET1 ratio improved by 43 basis points to 14.32%, indicating a strong capital position [28] Business Line Data and Key Metrics Changes - Total loans receivable increased by $7 million to $4.6 billion, driven by increases in multifamily and commercial industrial loans [38] - Political deposits grew by $103 million or 11% to $1.1 billion, consistent with historical patterns post-election [15][32] - Core non-interest income decreased to $9.1 million from $9.5 million, primarily due to lower commercial banking fees [42] Market Data and Key Metrics Changes - Total deposits increased by $446 million to $7.6 billion, with on-balance sheet deposits rising by 3.2% [31][32] - Non-interest-bearing deposits decreased to 39% of average ending deposits, while average cost of deposits increased by seven basis points to 159 basis points [33] Company Strategy and Development Direction - The company plans to maintain a conservative approach amid uncertain economic conditions, focusing on strong capital and liquidity [17][18] - A new $40 million share repurchase program was authorized, indicating a commitment to returning capital to shareholders [30][68] - The company is expanding its commercial PACE franchise, expecting C-PACE originations to ramp up to $15 to $20 million per quarter in the latter half of the year [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth and margin expansion for the remainder of the year, despite modest declines in core earnings and revenue [13][14] - The company anticipates C&I loan growth to remain muted in Q2, with reacceleration expected in the latter half of the year [18] - Management highlighted the importance of maintaining a strong credit profile and higher liquidity levels due to potential impacts from federal funding reductions [17][18] Other Important Information - The company is planning a move to a new headquarters in New York City by mid-2026, aimed at attracting and retaining top talent [21][22] - Nonperforming assets totaled $33.9 million, representing an increase driven by commercial industrial nonaccrual loans [46] Q&A Session Summary Question: Details on the $8.3 million loan that went on nonaccrual - Management indicated that the loan is in the solar sector and has sufficient collateral value, allowing them to maintain reserve coverage [54][56] Question: Impact of funding for clean energy projects - Management confirmed that there is no observed decline in funding for clean energy projects, with a strong pipeline continuing [58][60] Question: Concerns about political challenges affecting the bank - Management emphasized their focus on core business growth and maintaining strong capital and liquidity to navigate potential challenges [64][66] Question: Update on the political deposit franchise outlook - Management reported strong deposit performance with 11% growth in political deposits, consistent with historical trends [77][78] Question: Utilization of off-balance sheet strategies - Management explained that off-balance sheet strategies will be used as appropriate to manage balance sheet growth and maintain net interest income [84][86] Question: Expectations for expenses and digital transformation projects - Management confirmed that expenses are expected to ramp up throughout the year, with a focus on digital transformation and hiring plans [91][92] Question: Tangible impacts from the new administration - Management stated that they have not seen tangible impacts on lending or deposits but are closely monitoring potential risks [96][99]

Financial Data and Key Metrics Changes - Core earnings per share was $0.88, supported by net interest income of $70.6 million, which was within the guidance range of $70 million to $71 million [8][14] - Net income was $25 million or $0.81 per diluted share, while core net income was $27.1 million or $0.88 per diluted share [14] - Total deposits increased by $446 million to $7.6 billion, with on-balance sheet deposits rising by $231 million or 3.2% [19][20] Business Line Data and Key Metrics Changes - Political deposits increased by $103 million or 11% to $1.1 billion, following historical patterns post-election [9][19] - Net loans receivable were $4.6 billion, a slight increase of $7 million or 0.2% compared to the previous quarter, driven by increases in multifamily and commercial loans [22][23] - Core non-interest income decreased to $9.1 million from $9.5 million in the linked quarter, primarily due to lower commercial banking fees [25] Market Data and Key Metrics Changes - The average cost of deposits increased by 7 basis points to 1.59%, while interest-bearing deposit costs dropped by 9 basis points to 2.62% [20] - The not-for-profit deposit segment grew significantly, increasing from $285 million at year-end 2020 to $1.37 billion at the end of Q1 2025, representing 18.5% of on-balance sheet deposits [21][22] Company Strategy and Development Direction - The company plans to maintain a conservative approach while focusing on capital strength and liquidity to navigate uncertain environments [5][10] - A new $40 million share repurchase program was authorized, indicating a commitment to returning capital to shareholders [18][42] - The company is expanding its commercial PACE franchise to diversify volume and expects C PACE originations to ramp up in the latter half of the year [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the balance sheet and the ability to adapt to changing market conditions [5][6] - The company anticipates muted C&I loan growth in Q2, with reacceleration expected in the latter half of the year [11] - Management remains optimistic about net interest margin expansion and revenue growth for the remainder of the year [29] Other Important Information - Non-performing assets totaled $33.9 million or 0.41% of total assets, with an increase primarily due to commercial and industrial non-accrual loans [27][28] - The allowance for credit losses on loans decreased to $57.7 million, with a coverage ratio of 1.23% [28] Q&A Session Summary Question: Any color on the $8.3 million loan that went on non-accrual this quarter? - The loan had been classified for a while and has sufficient collateral value, allowing the company to maintain no increase in reserve coverage for it [31][32] Question: Are you seeing funding dry up for clean energy projects? - There is no observed impact; the company continues to have a strong pipeline for clean energy projects [34][36] Question: What can be done to protect the company from political risks? - The company focuses on maintaining strong capital and liquidity while continuing to operate effectively in core businesses [38] Question: Where are you willing to take the capital ratios down to with the buyback program? - The company is comfortable maintaining a Tier 1 leverage ratio above 9% while being aggressive with the buyback program [41][44] Question: Update on the political deposit franchise outlook? - The company is encouraged by the 11% growth in political deposits and expects this trend to continue [50][51] Question: Any tangible impact from the new administration on lending or deposits? - There has been no significant impact observed; the company remains cautious and adheres to strict credit standards [62][66]

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $25 million or $0.81 per diluted share, while core net income was $27.1 million or $0.88 per diluted share, reflecting the sustainability of earnings [17] - Core earnings per share was $0.88 supported by net interest income of $70.6 million, which was within the guidance range [10][17] - Total deposits increased by $446 million to $7.6 billion, with a significant portion attributed to political deposits growing by 11% [21][11] Business Line Data and Key Metrics Changes - Net loans receivable increased by $7 million or 0.2% to $4.6 billion, driven by increases in multifamily and commercial loans, while consumer solar and residential loans decreased [24][25] - Core non-interest income decreased to $9.1 million from $9.5 million in the previous quarter, primarily due to lower commercial banking fees [27] - Core non-interest expense increased to $41.5 million, mainly due to higher professional fees related to digital transformation [28] Market Data and Key Metrics Changes - Political deposits increased by $103 million to $1.1 billion, following historical patterns post-election [11] - The not-for-profit deposit segment grew significantly, increasing from $285 million at year-end 2020 to $1.37 billion at the end of Q1 2025, reflecting a 29% increase over the last twelve months [24] Company Strategy and Development Direction - The company plans to maintain a conservative approach while focusing on capital strength and liquidity to navigate uncertain environments [12][6] - A new $40 million share repurchase program was authorized, indicating a commitment to returning capital to shareholders [20] - The company is expanding its commercial PACE franchise to diversify volume and increase originations [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's ability to adapt to changing market conditions and emphasized the importance of a strong balance sheet [6][7] - The outlook for C&I loan growth is expected to remain muted in Q2, with reacceleration anticipated in the latter half of the year [13] - Management remains optimistic about net interest margin expansion and revenue growth for the remainder of the year [32] Other Important Information - The allowance for credit losses on loans decreased to $57.7 million, with a ratio of 1.23% of total loans [30] - Non-performing assets totaled $33.9 million or 0.41% of total assets, reflecting an increase primarily due to commercial and industrial non-accrual loans [29] Q&A Session Summary Question: Any color on the $8.3 million loan that went on non-accrual this quarter? - Management indicated that the loan had been classified for some time and there is sufficient collateral value, allowing them to maintain no increase in reserve coverage [34][35] Question: Are you seeing funding dry up for clean energy projects? - Management confirmed that there is no observed decline in funding for clean energy projects and demand for electricity continues to rise [37][39] Question: What is the outlook for the political deposit franchise? - Management expressed optimism about the political deposit growth and noted strong performance across all sectors [52][53] Question: Where are you willing to take the capital ratios down to? - Management stated that they are comfortable maintaining a Tier 1 leverage ratio above 9% while being aggressive with the buyback program [44][47] Question: Have you seen any tangible impact from the new administration on lending or deposits? - Management reported no significant impact on lending or deposits, maintaining a strong deposit base across all segments [66][67]

Financial Performance - Amalgamated Financial reported quarterly earnings of $0.88 per share, matching the Zacks Consensus Estimate, and an increase from $0.83 per share a year ago [1] - The company posted revenues of $76.98 million for the quarter, missing the Zacks Consensus Estimate by 5.46%, and down from $78.27 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Amalgamated Financial shares have declined approximately 16% since the beginning of the year, compared to a decline of 8.6% for the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.91 on revenues of $82.63 million, and for the current fiscal year, it is $3.65 on revenues of $331.73 million [7] - The outlook for the Financial - SBIC & Commercial Industry, to which Amalgamated Financial belongs, is currently in the bottom 44% of Zacks industries, which may impact stock performance [8]

Financial Performance - Net income for Q1 2025 was $25.0 million, or $0.81 per diluted share, an increase from $24.5 million, or $0.79 per diluted share in the prior quarter[6]. - Core net income was $27.1 million, or $0.88 per diluted share, compared to $28.0 million, or $0.90 per diluted share in the prior quarter[8]. - Net income for the three months ended March 31, 2025, was $25.028 million, compared to $24.491 million in the previous quarter[40]. - Basic earnings per share for Q1 2025 was $0.82, a slight increase from $0.80 in Q4 2024, but down from $0.89 in Q1 2024[42]. - Core net income (non-GAAP) per diluted share was $0.88 for Q1 2025, compared to $0.90 in Q4 2024 and $0.83 in Q1 2024[42]. - Core operating revenue (non-GAAP) for Q1 2025 was $79,685,000, compared to $82,577,000 in Q4 2024, a decline of 3.4%[50]. - Net Interest Income (GAAP) for Q1 2025 was $70,577,000, down from $73,095,000 in Q4 2024, a decrease of 3.4%[50]. - Core net income (non-GAAP) for Q1 2025 was $27,124,000, compared to $27,968,000 in Q4 2024, a decline of 3.0%[50]. Deposits and Loans - Total deposits increased by $445.9 million, or 6.2%, to $7.6 billion, with on-balance sheet deposits rising by $231.5 million, or 3.2%[6][18]. - Total net loans receivable rose by $7.0 million, or 0.2%, to $4.6 billion, driven by increases in multifamily and commercial loans[17]. - As of March 31, 2025, total loans held for investment amounted to $4,677,506, a slight increase from $4,672,924 at December 31, 2024, and up from $4,423,780 at March 31, 2024[44]. - The commercial portfolio represents 63.8% of the total loans, with the multifamily segment growing to $1,371,950, which is 29.3% of the total, compared to 28.9% at the end of 2024[44]. - The total deposits reached $7,412,072 as of March 31, 2025, an increase from $7,180,605 at December 31, 2024, and $7,305,765 at March 31, 2024[46]. Asset Quality - Nonperforming assets totaled $33.9 million, or 0.41% of total assets, an increase from $25.9 million, or 0.31% in the prior quarter[19]. - The allowance for credit losses decreased by $2.4 million to $57.7 million, with the ratio of allowance to total loans at 1.23%[20]. - Nonaccrual loans totaled $32,944,000 as of March 31, 2025, up from $21,009,000 at the end of 2024, representing a 56.8% increase[48]. - Total nonperforming assets increased to $33,940,000 as of March 31, 2025, compared to $25,870,000 on December 31, 2024, reflecting a 31.5% increase[47]. - Total loans classified as criticized and classified represented 1.79% of total loans as of March 31, 2025, down from 2.06% at the end of 2024[48]. Capital and Ratios - Common Equity Tier 1 Capital ratio improved to 14.27%, and Tangible Common Equity ratio increased to 8.73%, marking a tenth consecutive quarter of improvement[21][22]. - Tier 1 risk-based capital ratio improved to 14.27% in Q1 2025 from 13.90% in Q4 2024, indicating a stronger capital position[43]. - Total stockholders' equity increased to $735,996 thousand as of March 31, 2025, up from $707,654 thousand at December 31, 2024, reflecting a growth of 3.25%[41]. Interest Income and Expenses - Net interest margin decreased by 4 basis points to 3.55%, with net interest income down by $2.5 million, or 3.4%, to $70.6 million[10][9]. - The net interest income for the three months ended March 31, 2025, was $70,577, with an interest rate spread of 2.41%, compared to $73,094 and 2.31% for the previous quarter[45]. - The average yield on interest-earning assets was 5.06% for the three months ended March 31, 2025, up from 4.97% a year earlier[45]. - Total non-interest income increased to $6.406 million from $4.789 million in the previous quarter[40]. - Total non-interest expense was $41.650 million, slightly up from $41.143 million in the previous quarter[40]. Tax and Regulatory Environment - The effective tax rate increased to 28.0% from 25.9% in the prior quarter, influenced by higher annual effective tax rates and discrete tax items[15]. - The company is subject to various risks including economic conditions, credit losses, and regulatory changes that could impact future performance[37]. Trust Business - The trust business held $35.7 billion in assets under custody and $14.2 billion in assets under management as of March 31, 2025[25].