Core Insights - Amalgamated Financial Corp. reported a net income of $25.0 million, or $0.81 per diluted share, for Q1 2025, an increase from $24.5 million, or $0.79 per diluted share, in the previous quarter [6][7] - The company achieved a Common Equity Tier 1 Capital ratio of 14.27% and a Tangible Common Equity ratio of 8.73%, indicating strong capital positions [20][21] - Total assets remained stable at $8.3 billion, with total deposits increasing by $445.9 million, or 6.2%, to $7.6 billion [15][17] Financial Performance - Core net income for the quarter was $27.1 million, or $0.88 per diluted share, down from $28.0 million, or $0.90 per diluted share, in the prior quarter [8] - Net interest income decreased by $2.5 million, or 3.4%, to $70.6 million, primarily due to a higher average balance of interest-bearing deposits [9][10] - Non-interest income rose to $6.4 million from $4.8 million in the previous quarter, with core non-interest income at $9.1 million [12] Balance Sheet Highlights - Total on-balance sheet deposits increased by $231.5 million, or 3.2%, to $7.4 billion, with non-interest-bearing deposits comprising 39% of total deposits [17] - Total net loans receivable increased by $7.0 million, or 0.2%, to $4.6 billion, driven by growth in multifamily and commercial loans [16] - Nonperforming assets rose to $33.9 million, or 0.41% of total assets, primarily due to an increase in commercial and industrial non-accrual loans [18] Capital and Returns - The Tier 1 leverage ratio improved to 9.22%, up by 22 basis points from the previous quarter [20] - Tangible book value per share increased by $0.91, or 4.0%, to $23.51, marking a 35.7% increase since September 2021 [21] - Core return on average tangible common equity was 15.54%, while core return on average assets stood at 1.33% [21][44] Shareholder Actions - The company repurchased approximately 105,000 shares, totaling $3.5 million, and approved a new $40 million share repurchase program [5][6] - Dividends paid during the quarter amounted to $4.3 million at $0.14 per share [20]

Company Overview - Amalgamated Financial (AMAL) is headquartered in New York and operates in the Finance sector [3] - The stock has experienced a price decline of 20.17% since the beginning of the year [3] Dividend Information - Amalgamated Financial currently pays a dividend of $0.14 per share, resulting in a dividend yield of 2.1% [3] - The industry average yield for Financial - SBIC & Commercial Industry is 11.3%, while the S&P 500 yield is 1.69% [3] - The company's annualized dividend of $0.56 represents a 21.7% increase from the previous year [4] - Over the past five years, Amalgamated Financial has increased its dividend twice year-over-year, averaging an annual increase of 11.67% [4] - The current payout ratio is 14%, indicating that the company pays out 14% of its trailing 12-month EPS as dividends [4] Earnings Expectations - The Zacks Consensus Estimate for 2025 earnings is projected at $3.65 per share, reflecting a year-over-year growth rate of 4.89% [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - Established firms with secure profits are typically viewed as the best dividend options, while high-growth businesses and tech startups rarely offer dividends [7] - Amalgamated Financial is considered a compelling investment opportunity due to its strong dividend profile and a Zacks Rank of 3 (Hold) [7]

Core Viewpoint - Amalgamated Financial Corp. is set to release its first quarter 2025 financial results on April 24, 2025, and will host a conference call to discuss these results [1]. Financial Results Announcement - The financial results will be released before market open on April 24, 2025 [1]. - A conference call is scheduled for 11:00 a.m. Eastern Time on the same day to discuss the results [1]. Participation Details - Investors and analysts can join the call by dialing 1-877-407-9716 or 1-201-493-6779 for international callers, approximately 10 minutes before the call starts [2]. - A live audio webcast will be available on the company's investor relations website [2]. Replay Information - A replay of the conference call will be accessible within two hours after the call concludes, available online and by dialing 1-844-512-2921 or 1-412-317-6671 for international callers [3]. - The replay will be available until May 1, 2025, and requires a pin of 13752421 to access the telephone replay [3]. 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, along with a commercial office in Boston [4]. - As of December 31, 2024, the company reported total assets of $8.3 billion, total net loans of $4.6 billion, and total deposits of $7.2 billion [4]. - The trust business held $35.0 billion in assets under custody and $14.6 billion in assets under management as of the same date [4].

Core Insights - Amalgamated Bank successfully closed the first adjustable-rate financing under the Oklahoma County C-PACE Program for the Alley North Office development, utilizing Allectrify's FASTPACE Platform [1][4] Company Overview - Amalgamated Bank is a mission-driven full-service commercial bank based in New York, providing a range of banking products and services, including commercial and retail banking, investment management, and lending services [5] - Allectrify, PBC offers a platform that simplifies C-PACE financing for lenders and borrowers, enabling quick and cost-effective access to financing for various projects [6] Project Details - The Alley North Office development is a significant project in Oklahoma City's Alley North redevelopment district, featuring the first multi-story mass timber office building in the state [2] - The project will serve as the headquarters for C.H. Guernsey & Company, a diversified engineering and consulting firm, and is strategically located along a planned regional transit line [2] Financing and Sustainability - The C-PACE financing will fund a high-efficiency glazing system to enhance the building's energy efficiency, maximizing natural light while reducing heating and cooling energy demand [3] - The project emphasizes sustainability and incorporates human-centered design principles to promote occupant health and well-being [3] Industry Impact - This project marks the first adjustable-rate C-PACE financing in Oklahoma County, allowing for interest rate resets at predetermined intervals, which provides flexibility for borrowers [4]

Core Insights - Amalgamated Bank has successfully closed the first adjustable-rate financing under the Oklahoma County C-PACE Program for the Alley North Office development, utilizing Allectrify's FASTPACE Platform for C-PACE financing [1][4] Company Overview - Amalgamated Bank is a mission-driven full-service commercial bank based in New York, providing a range of banking products, investment management, and lending services since 1923, with a focus on sustainable companies and clean energy [5] - Allectrify, PBC offers a platform called FASTPACE that simplifies C-PACE financing for lenders and borrowers, enabling quick and cost-effective access to financing for projects of all sizes [6] Project Details - The Alley North Office development is a significant project in Oklahoma City's Alley North redevelopment district, featuring the first multi-story mass timber office building in the state, which will serve as the headquarters for C.H. Guernsey & Company [2] - The project emphasizes sustainability through the use of a high-efficiency glazing system that maximizes natural light and reduces energy demand, aligning with human-centered design principles [3] Financing Structure - The C-PACE financing will support long-term, competitive financing for commercial property owners focused on energy performance and water conservation, marking the first adjustable-rate structure in Oklahoma County [4]

Core Viewpoint - Amalgamated Financial Corp. (NASDAQ: AMAL) is expected to see earnings growth this year due to an anticipated improvement in asset mix, which will enhance the net interest margin and positively impact the bottom line [1] Earnings Forecast - Earnings are projected to grow by 1.6% to $3.50 per share [1]

Group 1: Enersys (ENS) - Enersys is engaged in manufacturing, marketing, and distribution of various industrial batteries and has a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Enersys' current year earnings has increased by 7.2% over the last 60 days [1] - Enersys has a price-to-earnings ratio (P/E) of 9.56, significantly lower than the industry average of 17.20, and possesses a Value Score of A [2] Group 2: Amalgamated Financial (AMAL) - Amalgamated Financial is a full-service commercial bank and chartered trust company providing commercial banking and trust services nationally, also holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Amalgamated Financial's current year earnings has increased by 4.9% over the last 60 days [2] - Amalgamated Financial has a price-to-earnings ratio (P/E) of 7.98, compared to the industry average of 9.30, and possesses a Value Score of B [3] Group 3: First Financial Corporation Indiana (THFF) - First Financial Corporation Indiana is a multi-bank holding company providing various financial products and services in several states, also holding a Zacks Rank 1 [4] - The Zacks Consensus Estimate for First Financial Corporation Indiana's current year earnings has increased by 7.1% over the last 60 days [4] - First Financial Corporation Indiana has a price-to-earnings ratio (P/E) of 8.96, lower than the industry average of 10.70, and possesses a Value Score of B [5]

Core Viewpoint - Amalgamated Financial Corp. has announced a new share repurchase authorization of up to $40 million, replacing the previous authorization which had approximately $18.7 million remaining as of December 31, 2024 [1][2]. Company Overview - Amalgamated Financial Corp. is a Delaware public benefit corporation and bank holding company, operating through its wholly-owned subsidiary, Amalgamated Bank, which is a full-service commercial bank based in New York [3]. - As of December 31, 2024, Amalgamated Bank reported total assets of $8.3 billion, total net loans of $4.6 billion, and total deposits of $7.2 billion [3]. - The trust business of Amalgamated Bank held $35.0 billion in assets under custody and $14.6 billion in assets under management as of December 31, 2024 [3]. Management Commentary - The President and CEO, Priscilla Sims Brown, indicated that the bank is experiencing momentum as political deposit balances are rebuilding post-election and the business production pipeline is growing [2]. - The CEO believes the current share price does not reflect the bank's momentum and future growth opportunities, making the new repurchase authorization timely [2]. Share Repurchase Program - The new share repurchase authorization does not have an expiration date and can be modified or discontinued at the company's discretion [2]. - The timing, number, and value of shares to be repurchased will be determined by the company's management based on various factors, including stock performance and market conditions [2].

Financial Performance - Net income for the year ended December 31, 2024, was $106.4 million, or $3.44 per average diluted share, compared to $88.0 million, or $2.86 per average diluted share, for the same period in 2023, reflecting an increase of $18.4 million[339]. - Net interest income increased by $21.1 million, contributing significantly to the overall revenue growth[339]. - Non-interest income for the year ended December 31, 2024, was $33.2 million, an increase of $3.9 million or 13.3% from $29.3 million in 2023[354]. - Non-interest expenses increased by $8.6 million, which included higher salaries and operational costs[339]. - The provision for income tax expense was $39.2 million in 2024, with an effective tax rate of 26.9%, down from 29.5% in 2023[360]. Loan Portfolio - Total loans, net of deferred origination fees and allowance for credit losses, increased to $4.61 billion as of December 31, 2024, up from $4.35 billion in 2023, representing a growth of 6%[376]. - The commercial loan portfolio comprised 63.3% of the total loan portfolio as of December 31, 2024, up from 57.5% in 2023[380]. - C&I loans totaled $1.18 billion, accounting for 25.2% of the total loan portfolio, with a year-over-year increase of 16.3%[380]. - Multifamily loans reached $1.35 billion, representing 28.9% of the total loan portfolio, with a growth of 17.7% from the previous year[382]. - Residential real estate lending loans totaled $1.31 billion, comprising 28.1% of the total loan portfolio, but decreased by 7.9% from $1.43 billion in 2023[384]. Credit Quality - The estimated allowance for credit losses (ACL) totaled $60.1 million, representing approximately 1.29% of total loans, net[199]. - The provision for credit losses decreased by $4.4 million, indicating improved credit quality[339]. - The allowance for credit losses decreased by $5.6 million to $60.1 million at December 31, 2024, from $65.7 million at December 31, 2023, with a ratio of allowance to total loans at 1.29%[394]. - Nonperforming assets totaled $25.9 million, or 0.31% of total assets at December 31, 2024, a decrease of $8.3 million from $34.2 million, or 0.43% at December 31, 2023[401]. - Total loan charge-offs for the year ended December 31, 2024, were $17,850 thousand, compared to $16,058 thousand for the previous year[394]. Deposits and Liquidity - Total on-balance sheet deposits amounted to $7.18 billion as of December 31, 2024, with labor unions contributing $1.99 billion (28%) and political campaigns contributing $969.6 million (14%) to the total[235]. - Total deposits increased to $7.18 billion at December 31, 2024, up from $7.01 billion at December 31, 2023, indicating growth in core deposits[408]. - Uninsured deposits decreased to $3.71 billion at December 31, 2024, from $4.04 billion at December 31, 2023, driven by customers moving excess funds into reciprocal deposit products[412]. - The company had $2.74 billion in cash and borrowing capacity, providing total liquidity of $3.18 billion, covering 86% of total uninsured deposits[418]. - The company maintains sufficient liquidity to meet capital and debt service obligations for 12 months under adverse conditions without support from subsidiaries or access to wholesale markets[414]. Regulatory and Compliance Risks - The company faces liquidity risk, which is essential for funding depositors' needs, repaying borrowings, and meeting other obligations[232]. - Regulatory requirements may impose more stringent capital standards, potentially restricting business activities and affecting profitability[239]. - Non-compliance with laws and regulations could result in fines and damage to reputation, adversely affecting business operations[258]. - The Community Reinvestment Act regulations, effective April 1, 2024, will increase compliance obligations for the company[264]. - The final rule from the CFPB regarding residential PACE financing will become effective on March 1, 2026, potentially increasing compliance costs and risks[210]. Market and Economic Conditions - The Federal Open Market Committee (FOMC) maintained short-term interest rates at a range of 4.25% to 4.50% and projected only two interest rate cuts in 2025[192]. - The company may experience net interest margin compression if interest rates on interest-earning assets do not increase in tandem with interest-bearing liabilities[191]. - The trust and investment management business is vulnerable to economic and market conditions, which can lead to declines in performance and investment management fees[211]. - The banking industry is highly competitive, with technology lowering barriers to entry, necessitating innovation to meet customer needs[249]. - The CFPB's new rule on Personal Financial Data Rights could increase competition and adversely affect the company's market position[250]. Employee and Labor Relations - As of December 31, 2024, the company had 429 employees, with approximately 21% represented by collective bargaining agreements[231]. - A new collective bargaining agreement was entered into on November 29, 2024, providing for a 3.5% wage increase per annum until June 30, 2026[231]. - Compensation and employee benefits increased by $8.0 million in 2024, driven by increased headcount and corporate incentive payments[359]. Investment and Securities - As of December 31, 2024, the fair value of the investment securities portfolio was approximately $3.18 billion[194]. - Total securities amounted to $2.63 billion with an estimated yield of 4.7%[375]. - Approximately 86% of non-agency securities carry AAA credit ratings, indicating a high-quality investment portfolio[375]. - Available-for-sale securities amounted to $1.63 billion at December 31, 2024, compared to $1.48 billion in 2023[365]. - Held-to-maturity securities decreased to $1.59 billion at December 31, 2024, down from $1.70 billion in 2023[366].

Core Insights - The Federal Reserve's 2025 stress test parameters indicate smaller hypothetical shocks to the U.S. economy compared to previous years, leading to a positive market reaction for bank shares [1][2][3] - The 2025 exam features a projected unemployment rate of 10% and a 33% drop in home prices, but with less severe spikes in unemployment and declines in stock and real estate values than in prior tests [2][4] - The changes in the stress test are seen as beneficial for large U.S. banks, suggesting a more favorable regulatory environment under the current administration [4][6] Group 1 - Bank shares, including Citigroup, Goldman Sachs, Morgan Stanley, and Bank of America, experienced notable gains, with Citigroup shares rising by 2.9% [3] - The KBW Bank Index increased by 1.2%, outperforming the S&P Regional Banking ETF, which rose by 0.9% [3] - Analysts believe that the less challenging and more predictable nature of the stress tests will allow banks to maintain smaller capital cushions [5][6] Group 2 - The Federal Reserve plans to enhance the transparency of stress test results and improve model predictability in the upcoming 2025 exam [2][5] - Industry analysts express increased confidence that banks will see relief in regulatory capital requirements due to the anticipated shift towards a more balanced regulatory regime [6]