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].

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]