Financial Data and Key Metrics Changes - Core earnings per share for Q3 2025 was $0.91, with year-to-date core EPS at $2.66, reflecting a 3% growth compared to the previous year [3][9] - Net income was reported at $26.8 million, or $0.88 per diluted share, while core net income was $27.6 million, or $0.91 per diluted share [9] - Net interest income increased by 4.9% to $76.4 million, with a net interest margin rising by 5 basis points to 3.6% [9][10] - Non-performing assets decreased by $12.2 million, or 34.6%, to $23 million, representing 0.26% of total assets [4][10] Business Line Data and Key Metrics Changes - Loans grew by $99 million across growth mode portfolios, achieving a 3.3% growth rate, up from 2.1% in the previous quarter [5][6] - The PACE portfolio saw total assessments grow by $27.4 million, with CPACE growing over 8% [5] - Deposits increased by $415 million, with notable growth in the political segment (19% increase) and climate and sustainability segment (21% increase) [6][10] Market Data and Key Metrics Changes - Total on-balance sheet deposits increased by $149 million, or 1.9%, to $7.6 billion [10] - The tangible book value per share increased by $0.98, or 4%, to $25.31, marking a 46% growth since September 2021 [10] Company Strategy and Development Direction - The company is investing in a fully integrated digital modernization platform to enhance productivity and customer understanding [7] - The focus remains on maintaining a balanced and predictable contribution from lending channels while managing geographic diversity [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting strong deposit growth and a solid credit portfolio [6][7] - The company raised its full-year 2025 core pre-tax pre-provision earnings guidance to $164 to $165 million [16] Other Important Information - The allowance for credit losses on loans decreased by $2.5 million to $56.5 million, with a ratio of 1.18% [15] - The company plans to continue share buybacks until the share price reflects forward earnings projections [11] Q&A Session Summary Question: Specific reserve mentioned on page 11 - The specific reserve of $1.9 million is related to a multifamily property with an updated appraisal indicating a change in LTV [19][20] Question: Impact of potential rent freezes in New York City - Management does not expect significant impact in the next 18 to 24 months and is monitoring the situation closely [21][22][23] Question: Concerns about federal funding for green energy projects - Existing projects are secure as funding streams are locked in, and the company is seeing acceleration in project transactions [24][25][26][30] Question: Positioning against regulatory scrutiny - The company focuses on compliance with laws and regulations, emphasizing solid performance and risk management [31][32] Question: Expense management and guidance - Expenses are on track with the $170 million annual target, with potential upside if Q4 expenses align with Q3 [35][39] Question: Loan yields and new originations - Loan yields are expected to decline due to anticipated rate cuts, with current origination yields remaining strong [40][42]

Financial Performance - Core net income was $276 million[12] - Core EPS was $091[20] - Net interest income reached $764 million[16] - Net interest margin stood at 360%[18] Deposit Portfolio - Total GAAP deposits amounted to $78 billion as of October 16, 2025[24] - Total core deposits reached $80 billion[26] - Political deposits totaled $144 billion[101] Loan Portfolio - Total loans amounted to $479 billion[43] - Growth portfolios experienced a current quarter growth of $992 million, representing a 33% increase[45] - Non-growth portfolios saw a current quarter decrease of $270 million, a 16% decline[47] Credit Quality - Non-performing assets to total assets ratio was 026%[59] - Criticized and classified loans totaled $79 million[62]

Core Insights - Amalgamated Financial (AMAL) reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, with a year-over-year comparison showing no change in earnings [1] - The company achieved revenues of $85.61 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.16% and showing an increase from $81.05 million a year ago [2] - The stock has underperformed, losing approximately 20.3% since the beginning of the year, while the S&P 500 has gained 13.9% [3] Earnings Performance - The earnings surprise for the recent quarter was +3.41%, while the previous quarter saw a surprise of -2.22% [1][2] - Over the last four quarters, Amalgamated Financial has surpassed consensus EPS estimates two times and topped revenue estimates once [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.91 on revenues of $85.1 million, and for the current fiscal year, it is $3.55 on revenues of $330.2 million [7] - The estimate revisions trend for Amalgamated Financial was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - SBIC & Commercial Industry, to which Amalgamated Financial belongs, is currently ranked in the bottom 11% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

```markdown [Executive Summary: Third Quarter 2025 Highlights](index=1&type=section&id=Executive%20Summary%3A%20Third%20Quarter%202025%20Highlights) Amalgamated Financial Corp. reported strong Q3 2025 results, with growth in net income, deposits, and assets, and robust capital [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) Amalgamated Financial Corp. reported strong Q3 2025 results, with net income, core net income, and tangible book value per share increasing Key Financial Metrics | Metric | Q3 2025 | Q2 2025 | | :--- | :--- | :--- | | Net income | $26.8 million | $26.0 million | | Diluted EPS | $0.88 | $0.84 | | Core net income | $27.6 million | $27.0 million | | Core diluted EPS | $0.91 | $0.88 | - Tangible book value per share increased by **$0.98** (**4.0%**) to **$25.31** in Q3 2025, and has grown by **$7.98** (**46.1%**) since September 2021[5](index=5&type=chunk) [Deposits and Liquidity](index=1&type=section&id=Deposits%20and%20Liquidity) Deposits grew across on-balance and off-balance sheets, with political deposits increasing and non-interest-bearing deposits stable Deposit and Liquidity Metrics | Metric | Q3 2025 | Change (Linked Quarter) ($) | | :--- | :--- | :--- | | On-balance sheet deposits | $7.8 billion | +$36.7 million (0.5%) | | On-balance sheet deposits (excl. temporary pension funding) | | +$149.0 million (1.9%) | | Off-balance sheet deposits | $265.0 million | +$223.6 million | | Political deposits (on & off-balance sheet) | $1.4 billion | +$235.0 million (19%) | | Average cost of deposits | **167 basis points** | **+5 basis points** | | Non-interest-bearing deposits | **37%** of total | No change | [Margin and Assets](index=1&type=section&id=Margin%20and%20Assets) Net interest margin expanded, loan portfolio grew, and nonperforming assets decreased significantly Margin and Asset Metrics | Metric | Q3 2025 | Change (Linked Quarter) ($) | | :--- | :--- | :--- | | Net interest margin | **3.60%** | **+5 basis points** | | Net interest income | $76.4 million | +$3.5 million (4.9%) | | Net loans receivable | $4.7 billion | +$77.0 million (1.7%) | | Net loans in growth mode | | +$99.2 million (3.3%) | | Total PACE assessments | $1.2 billion | +$27.4 million (2.3%) | | Nonperforming assets | $23.0 million | -$12.2 million (34.6%) | | Nonperforming assets as % of total assets | **0.26%** | **-0.15 percentage points** | [Capital and Returns](index=1&type=section&id=Capital%20and%20Returns) Strong capital ratios maintained, reflecting healthy core return on average tangible common equity Capital and Return Metrics | Metric | Q3 2025 | | :--- | :--- | | Tier 1 leverage ratio | **9.18%** | | Common Equity Tier 1 ratio | **14.21%** | | Tangible common equity ratio | **8.79%** | | Core return on average tangible common equity | **14.65%** | | Core return on average assets | **1.27%** | [Share Repurchase](index=1&type=section&id=Share%20Repurchase) Company continued its share repurchase program, buying back significant shares with remaining capacity - Approximately **347,000** shares (**$10.4 million**) of common stock were repurchased through September 30, 2025, with **$19.9 million** remaining capacity[5](index=5&type=chunk) - An additional **74,000** shares were repurchased from October 1 through October 21, 2025[5](index=5&type=chunk) [Third Quarter Earnings Analysis](index=2&type=section&id=Third%20Quarter%20Earnings%20Analysis) Analysis of Q3 2025 earnings, detailing changes in net income, interest income, expenses, and tax [Net Income and Core Net Income](index=2&type=section&id=Net%20Income%20and%20Core%20Net%20Income) Net income and core net income increased due to higher net interest and non-interest income, offset by expenses Net Income and EPS Trends | Metric | Q3 2025 | Q2 2025 | Change (QoQ) ($) | | :--- | :--- | :--- | | Net income | $26.8 million | $26.0 million | +$0.8 million | | Diluted EPS | $0.88 | $0.84 | +$0.04 | | Core net income | $27.6 million | $27.0 million | +$0.6 million | | Core diluted EPS | $0.91 | $0.88 | +$0.03 | - The increase in net income was mainly due to a **$3.5 million** rise in net interest income and a **$1.2 million** increase in non-interest income, partially offset by a **$3.0 million** increase in non-interest expense and a **$0.4 million** increase in provision for credit losses[6](index=6&type=chunk) - Core net income for Q3 2025 excluded **$1.2 million** in losses on sale of securities, **$0.4 million** of ICS One-Way Sell fee income, and **$0.3 million** of severance costs (pre-tax)[7](index=7&type=chunk) [Net Interest Income and Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income and margin expanded, driven by securities purchases and higher-yielding commercial loans Net Interest Income and Margin Trends | Metric | Q3 2025 | Q2 2025 | Change (QoQ) ($) | | :--- | :--- | :--- | | Net interest income | $76.4 million | $72.9 million | +$3.5 million | | Net interest margin | **3.60%** | **3.55%** | **+5 basis points** | | Loan interest income | | +$3.6 million | | | Loan yields | | **+17 basis points** | | | Securities interest income | | +$2.0 million | | | Interest expense on deposits | | +$2.0 million | | | Interest-bearing deposit costs | | **+2 basis points** | | - Average loan balances increased by **$72.5 million**, driven by strong commercial loan originations[8](index=8&type=chunk) - The increase in net interest margin was partially offset by a higher average balance of interest-bearing deposits, leading to a slightly higher blended cost of funds[9](index=9&type=chunk) [Provision for Credit Losses](index=2&type=section&id=Provision%20for%20Credit%20Losses) Provision for credit losses increased due to non-performing loan resolutions, charge-offs, and reserve increases Provision for Credit Losses | Metric | Q3 2025 | Q2 2025 | Change (QoQ) ($) | | :--- | :--- | :--- | | Provision for credit losses | $5.3 million | $4.9 million | +$0.4 million | - The increase was primarily driven by the final resolution of a syndicated commercial and industrial non-performing loan, charge-offs on consumer solar and business banking portfolios, and a reserve increase for one non-performing multifamily loan[10](index=10&type=chunk) [Non-Interest Income](index=2&type=section&id=Non-Interest%20Income) Non-interest income and core non-interest income increased from commercial banking fees and BOLI income Non-Interest Income Trends | Metric | Q3 2025 | Q2 2025 | Change (QoQ) ($) | | :--- | :--- | :--- | | Non-interest income | $9.2 million | $8.0 million | +$1.2 million | | Core non-interest income | $10.0 million | $9.3 million | +$0.7 million | - The increase was mainly related to higher commercial banking fees and BOLI income[11](index=11&type=chunk) [Non-Interest Expense](index=2&type=section&id=Non-Interest%20Expense) Non-interest expense and core non-interest expense rose due to employee compensation and technology spending Non-Interest Expense Trends | Metric | Q3 2025 | Q2 2025 | Change (QoQ) ($) | | :--- | :--- | :--- | | Non-interest expense | $43.6 million | $40.5 million | +$3.1 million | | Core non-interest expense | $43.4 million | $40.5 million | +$2.9 million | | Employee compensation expense | | +$2.2 million | | | Technology spend | | +$0.5 million | | - The increase in non-interest expense was mainly driven by a **$2.2 million** increase in employee compensation expense related to incentives and a **$0.5 million** increase in technology spend for digital transformation[12](index=12&type=chunk) [Income Tax Expense](index=2&type=section&id=Income%20Tax%20Expense) Income tax expense slightly increased, with effective tax rate rising due to California tax law adoption Income Tax Expense and Rate | Metric | Q3 2025 | Q2 2025 | Change (QoQ) ($) | | :--- | :--- | :--- | | Income tax expense | $9.9 million | $9.5 million | +$0.4 million | | Effective tax rate | **27.0%** | **26.7%** | **+0.3 percentage points** | | Adjusted effective tax rate | **27.0%** | **27.3%** | **-0.3 percentage points** | - The increase in the effective tax rate was influenced by the adoption of the California single-sales factor apportionment law in the prior quarter[13](index=13&type=chunk) [Balance Sheet Quarterly Summary](index=3&type=section&id=Balance%20Sheet%20Quarterly%20Summary) Quarterly summary of the balance sheet, highlighting changes in assets, liabilities, loans, and deposits [Total Assets and Liabilities](index=3&type=section&id=Total%20Assets%20and%20Liabilities) Total assets increased, driven by growth in securities and net loans, with rising deposits and equity Balance Sheet Summary | Metric | Sep 30, 2025 | Jun 30, 2025 | Change (QoQ) ($) | | :--- | :--- | :--- | | Total assets | $8.7 billion | $8.6 billion | +$61.6 million (1%) | | Securities | | | +$39.1 million | | Net loans receivable | | | +$77.0 million | | On-balance sheet deposits | | | +$36.7 million | | Off-balance sheet deposits | | | +$223.6 million | | Equity | | | +$21.6 million | [Loans Receivable Portfolio](index=3&type=section&id=Loans%20Receivable%20Portfolio) Net loans receivable grew, primarily in commercial and multifamily segments, with decreased criticized loans Loan Portfolio Changes | Loan Category | Sep 30, 2025 ($) | Change (QoQ) ($) | | :--- | :--- | :--- | | Total net loans receivable | $4.7 billion | +$77.0 million (1.7%) | | Commercial and industrial | | +$77.1 million | | Multifamily | | +$47.9 million | | Commercial real estate | | -$25.9 million | | Consumer solar | | -$10.1 million | | Residential loans | | -$14.7 million | - Criticized or classified loans decreased by **$18.6 million**, largely due to the resolution and payoff of several non-performing commercial and industrial and commercial real estate loans[17](index=17&type=chunk) [Deposits and Liquidity](index=3&type=section&id=Deposits%20and%20Liquidity) On-balance sheet deposits increased, with significant growth in political deposits and stable non-interest-bearing deposits Deposit Composition and Liquidity | Metric | Sep 30, 2025 | Change (QoQ) ($) | | :--- | :--- | :--- | | Total on-balance sheet deposits | $7.8 billion | +$36.7 million (0.5%) | | Politically active customer deposits (on & off-balance sheet) | $1.4 billion | +$235.0 million | | Non-interest-bearing deposits | **37%** of average total deposits | No change | | Average cost of total deposits | **167 basis points** | No change | | Super-core deposits | ~**$4.3 billion** (**55%** of total) | | | Total uninsured deposits | **$4.1 billion** (**52%** of total) | | | Total uninsured, non-supercore deposits | **$2.1 billion** (**28%** of total) | | [Nonperforming Assets and Credit Quality](index=3&type=section&id=Nonperforming%20Assets%20and%20Credit%20Quality) Nonperforming assets significantly decreased, improving asset quality, driven by loan resolutions Nonperforming Assets and Credit Quality Metrics | Metric | Sep 30, 2025 | Jun 30, 2025 | Change (QoQ) ($) | | :--- | :--- | :--- | | Nonperforming assets | $23.0 million | $35.2 million | -$12.2 million | | Nonperforming assets as % of total assets | **0.26%** | **0.41%** | **-0.15 percentage points** | | Nonperforming C&I loans resolution/charge-off | | | -$12.3 million | | New nonaccrual multifamily loan | | | +$2.8 million | [Allowance for Credit Losses](index=3&type=section&id=Allowance%20for%20Credit%20Losses) Allowance for credit losses on loans decreased due to net reserve releases from resolved non-performing loans Allowance for Credit Losses on Loans | Metric | Sep 30, 2025 | Jun 30, 2025 | Change (QoQ) ($) | | :--- | :--- | :--- | | Allowance for credit losses on loans | $56.5 million | $59.0 million | -$2.5 million | | Ratio of allowance to total loans | **1.18%** | **1.25%** | **-7 basis points** | | Net reserve release (syndicated C&I loan) | | | -$2.3 million | | Reserve release (legacy C&I credit) | | | -$2.1 million | | Reserve release (business banking workout) | | | -$0.6 million | | Reserve increase (multifamily nonaccrual) | | | +$1.6 million | | Reserve increase (non-performing construction) | | | +$0.2 million | | Provision impact (loan balance/CECL model) | | | +$0.7 million | [Capital Quarterly Summary](index=4&type=section&id=Capital%20Quarterly%20Summary) Quarterly summary of capital position, including capital ratios, equity, and tangible book value [Capital Ratios](index=4&type=section&id=Capital%20Ratios) Strong capital ratios maintained, remaining well above regulatory minimums, reflecting solid capital Key Capital Ratios | Capital Ratio | Sep 30, 2025 | Jun 30, 2025 | | :--- | :--- | :--- | | Common Equity Tier 1 Capital ratio | **14.21%** | **14.13%** | | Total Risk-Based Capital ratio | **16.41%** | **16.43%** | | Tier 1 Leverage Capital ratio | **9.18%** | **9.22%** | [Stockholders' Equity and Tangible Book Value](index=4&type=section&id=Stockholders'%20Equity%20and%20Tangible%20Book%20Value) Stockholders' equity and tangible book value per share increased, driven by net income and AOCI improvement Equity and Tangible Book Value | Metric | Sep 30, 2025 | Jun 30, 2025 | Change (QoQ) ($) | | :--- | :--- | :--- | | Stockholders' equity | $775.6 million | $753.9 million | +$21.6 million | | Tangible book value per share | $25.31 | $24.33 | +$0.98 | | Tangible common equity ratio | **8.79%** | **8.60%** | **+19 basis points** | - The increase in stockholders' equity was driven by **$26.8 million** of net income and a **$7.8 million** improvement in accumulated other comprehensive loss, offset by **$10.4 million** in share buybacks and **$4.3 million** in dividends paid[21](index=21&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) Overview of Amalgamated Financial Corp., including conference call details and company profile [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) Company hosted a conference call to discuss Q3 2025 results, with replays available - A conference call was held on October 23, 2025, at 11:00 am (Eastern Time) to discuss Q3 2025 results[23](index=23&type=chunk) - Telephonic replay available until October 30, 2025, and an online webcast replay is available for a limited time on the investor relations website[23](index=23&type=chunk)[24](index=24&type=chunk) [About Amalgamated Financial Corp.](index=4&type=section&id=About%20Amalgamated%20Financial%20Corp.) Amalgamated Financial Corp. is a public benefit corporation and bank holding company for Amalgamated Bank - Amalgamated Financial Corp. is the holding company for Amalgamated Bank, a New York-based full-service commercial bank and chartered trust company[25](index=25&type=chunk) - The bank operates five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston[25](index=25&type=chunk) Company Financial Snapshot | Metric | Sep 30, 2025 | | :--- | :--- | | Total assets | $8.7 billion | | Total net loans | $4.7 billion | | Total deposits | $7.8 billion | | Assets under custody (trust business) | $37.9 billion | | Assets under management (trust business) | $16.6 billion | [Non-GAAP Financial Measures and Terminology](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Terminology) Explanation of non-GAAP financial measures and definitions of key terminology used in the report [Non-GAAP Measures Explanation](index=4&type=section&id=Non-GAAP%20Measures%20Explanation) Non-GAAP measures provide insights into operating performance by excluding certain discrete items - Non-GAAP measures are used to compare operating performance, prepare internal projections, and facilitate period-to-period comparisons, providing meaningful indications of operating performance[27](index=27&type=chunk) - These measures exclude intangible assets like goodwill and other discrete items unrelated to core business, allowing for easier comparison with other companies[27](index=27&type=chunk) - Non-GAAP information is not a substitute for GAAP measures, and readers are encouraged to review GAAP financials[28](index=28&type=chunk) [Key Terminology Definitions](index=5&type=section&id=Key%20Terminology%20Definitions) Key non-GAAP financial terms are defined, clarifying calculations and GAAP equivalents - Core efficiency ratio is defined as 'Core non-interest expense' divided by 'Core operating revenue'[29](index=29&type=chunk) - Core net income is net income after tax, excluding specific gains/losses on securities sales, fee income, fair value changes, severance costs, and tax adjustments[30](index=30&type=chunk) - Tangible common equity and tangible book value are defined as stockholders' equity excluding minority interests, goodwill, and core deposit intangibles[37](index=37&type=chunk) - Super-core deposits are defined as total deposits from commercial and consumer customers with a relationship length greater than 5 years[36](index=36&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) Discussion of potential risks and uncertainties that could impact future financial results [Risks and Uncertainties](index=6&type=section&id=Risks%20and%20Uncertainties) Report highlights numerous risks including banking industry conditions, credit losses, and regulatory changes - Uncertain conditions in the banking industry and national/regional economies may adversely impact business and financial performance[39](index=39&type=chunk) - Risks include deterioration in borrower financial condition leading to increased credit losses, deposit outflows, and challenges in maintaining sufficient liquidity[39](index=39&type=chunk) - Other factors include fluctuations in interest rates, declines in real estate markets (especially commercial real estate), potential regulatory reform, and operational/security system failures[39](index=39&type=chunk)[41](index=41&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) Presentation of the company's unaudited consolidated financial statements for the reported periods [Consolidated Statements of Income (unaudited)](index=8&type=section&id=Consolidated%20Statements%20of%20Income) Unaudited Consolidated Statements of Income detail revenues, expenses, and net income for the period Consolidated Statements of Income (Unaudited) | (S in thousands) | Three Months Ended Sep 30, 2025 (in thousands) | Three Months Ended Jun 30, 2025 (in thousands) | Three Months Ended Sep 30, 2024 (in thousands) | | :--- | :--- | :--- | :--- | | Total interest and dividend income | 109,585 | 104,099 | 102,816 | | Total interest expense | 33,138 | 31,190 | 30,709 | | NET INTEREST INCOME | 76,447 | 72,909 | 72,107 | | Provision for credit losses | 5,301 | 4,890 | 1,849 | | Total non-interest income | 9,161 | 8,025 | 8,939 | | Total non-interest expense | 43,617 | 40,584 | 40,964 | | Income before income taxes | 36,690 | 35,460 | 38,233 | | Income tax expense | 9,900 | 9,471 | 10,291 | | Net income | 26,790 | 25,989 | 27,942 | | Diluted EPS | 0.88 | 0.84 | 0.90 | [Consolidated Statements of Financial Condition](index=9&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Consolidated Statements of Financial Condition present assets, liabilities, and equity over time Consolidated Statements of Financial Condition | (S in thousands) | Sep 30, 2025 (in thousands) | Jun 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | :--- | | Total assets | 8,682,974 | 8,621,338 | 8,256,892 | | Total cash and cash equivalents | 115,544 | 171,066 | 60,749 | | Total securities | 3,497,090 | 3,457,962 | 3,215,263 | | Loans receivable, net | 4,732,293 | 4,655,346 | 4,612,838 | | Total liabilities | 7,907,401 | 7,867,354 | 7,549,238 | | Deposits | 7,769,969 | 7,733,272 | 7,180,605 | | Total stockholders' equity | 775,573 | 753,984 | 707,654 | [Select Financial Ratios and Other Data](index=10&type=section&id=Select%20Financial%20Ratios%20and%20Other%20Data) Key financial ratios and performance metrics provide a comprehensive view of financial health Select Financial Ratios and Data | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | | Diluted EPS | $0.88 | $0.84 | $0.90 | | Core diluted EPS (non-GAAP) | $0.91 | $0.88 | $0.91 | | Tangible book value per share (non-GAAP) | $25.31 | $24.33 | $22.29 | | Return on average assets | **1.23%** | **1.23%** | **1.32%** | | Core return on average tangible common equity (non-GAAP) | **14.65%** | **14.90%** | **17.04%** | | Net interest margin | **3.60%** | **3.55%** | **3.51%** | | Efficiency ratio | **50.95%** | **50.14%** | **50.54%** | | Nonperforming assets to total assets | **0.26%** | **0.41%** | **0.34%** | | Tier 1 leverage capital ratio | **9.18%** | **9.22%** | **8.63%** | | Common equity tier 1 capital ratio | **14.21%** | **14.13%** | **13.82%** | [Loan and PACE Assessments Portfolio Composition](index=12&type=section&id=Loan%20and%20PACE%20Assessments%20Portfolio%20Composition) Loan and PACE assessments portfolios are detailed by commercial and retail segments Loan and PACE Portfolio Composition | Loan Category | Sep 30, 2025 (Amount) ($) | Sep 30, 2025 (% of total) | Jun 30, 2025 (Amount) ($) | Jun 30, 2025 (% of total) | | :--- | :--- | :--- | :--- | :--- | | Commercial and industrial | $1,273,927 | 26.6% | $1,196,804 | 25.4% | | Multifamily | $1,454,104 | 30.4% | $1,406,193 | 29.8% | | Commercial real estate | $396,197 | 8.3% | $422,068 | 9.0% | | Total commercial portfolio | $3,146,782 | 65.7% | $3,045,395 | 64.6% | | Residential real estate lending | $1,277,355 | 26.7% | $1,292,013 | 27.4% | | Consumer solar | $335,531 | 7.0% | $345,604 | 7.3% | | Total retail portfolio | $1,641,990 | 34.3% | $1,668,949 | 35.4% | | Total loans held for investment | $4,788,772 | 100.0% | $4,714,344 | 100.0% | | Total PACE assessments | $1,243,556 | | $1,216,124 | | [Net Interest Income Analysis](index=13&type=section&id=Net%20Interest%20Income%20Analysis) Detailed analysis of interest income and expense by asset and liability categories Net Interest Income and Margin Analysis | (In thousands) | Sep 30, 2025 (Avg Balance) (in thousands) | Sep 30, 2025 (Income/Expense) (in thousands) | Sep 30, 2025 (Yield/Rate) (%) | | :--- | :--- | :--- | :--- | | Loans receivable, net (Avg Balance) | $4,732,210 | $62,321 | 5.22% | | Securities (Avg Balance) | $3,499,587 | $44,895 | 5.09% | | Total interest-earning assets (Avg Balance) | $8,419,417 | $109,585 | 5.16% | | Total interest-bearing deposits (Avg Balance) | $4,892,177 | $32,583 | 2.64% | | Total interest-bearing liabilities (Avg Balance) | $4,968,677 | $33,138 | 2.65% | | Net interest income | | $76,447 | | | Net interest margin | $3,450,740 | | 3.60% | - For the nine months ended September 30, 2025, net interest income was **$219.9 million** with a net interest margin of **3.57%**, compared to **$209.3 million** and **3.48%** for the same period in 2024[48](index=48&type=chunk) [Deposit Portfolio Composition](index=15&type=section&id=Deposit%20Portfolio%20Composition) Detailed breakdown of the deposit portfolio by type, balances, and average rates paid Deposit Portfolio Breakdown | Deposit Type | Sep 30, 2025 (Ending Balance) ($) | Sep 30, 2025 (Average Balance) ($) | Sep 30, 2025 (Average Rate Paid) (%) | | :--- | :--- | :--- | :--- | | Non-interest-bearing demand deposit accounts | $2,911,442 | $2,846,392 | 0.00% | | NOW accounts | $175,701 | $173,768 | 0.52% | | Money market deposit accounts | $4,140,781 | $4,184,050 | 2.62% | | Savings accounts | $339,219 | $334,102 | 1.24% | | Time deposits | $202,826 | $200,257 | 3.24% | | Total deposits | $7,769,969 | $7,738,569 | 1.55% | | Total deposits excluding Brokered CDs | $7,769,969 | $7,738,569 | 1.67% | [Asset and Credit Quality](index=16&type=section&id=Asset%20and%20Credit%20Quality) Detailed information on asset quality, nonaccrual loans, and allowance for credit losses Asset and Credit Quality Metrics | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | | Total nonperforming assets | $23,002 | $35,165 | $28,647 | | Nonaccrual loans - Commercial | $15,502 | $27,501 | $17,108 | | Nonaccrual loans - Retail | $7,035 | $7,199 | $10,542 | | Total nonaccrual loans | $22,537 | $34,700 | $27,650 | | Criticized and classified loans | $79,228 | $97,828 | $88,556 | | Criticized and classified loans to total loans | **1.67%** | **2.07%** | **1.94%** | | Annualized net charge-offs to average loans | **0.81%** | **0.30%** | **0.61%** | | Allowance for credit losses on loans to total loans | **1.18%** | **1.25%** | **1.35%** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=18&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) Detailed reconciliations of non-GAAP financial measures to comparable GAAP measures GAAP to Non-GAAP Reconciliation | (in thousands) | Sep 30, 2025 (in thousands) | Jun 30, 2025 (in thousands) | Sep 30, 2024 (in thousands) | | :--- | :--- | :--- | :--- | | Net Interest Income (GAAP) | $76,447 | $72,909 | $72,107 | | Non-interest income (GAAP) | $9,161 | $8,025 | $8,939 | | Core operating revenue (non-GAAP) | $86,414 | $82,183 | $80,876 | | Non-interest expense (GAAP) | $43,617 | $40,584 | $40,964 | | Core non-interest expense (non-GAAP) | $43,357 | $40,442 | $40,723 | | Net Income (GAAP) | $26,790 | $25,989 | $27,942 | | Core net income (non-GAAP) | $27,560 | $27,009 | $27,994 | | Stockholders' equity (GAAP) | $775,573 | $753,984 | $698,332 | | Tangible common equity (non-GAAP) | $761,581 | $739,848 | $683,594 | ```

Core Viewpoint - Amalgamated Financial Corp. reported a net income increase in the third quarter of 2025, indicating positive financial performance compared to the previous quarter [1] Financial Performance - The net income for the third quarter of 2025 was $26.8 million, or $0.88 per diluted share, an increase from $26.0 million, or $0.84 per diluted share in the previous quarter [1] - Core net income for the same period was $27.6 million, or $0.91 per diluted share, compared to $27.0 million in the prior quarter [1]

Group 1 - Amalgamated Financial Corp. (NASDAQ: AMAL) has been downgraded from a buy rating to a hold rating due to a decline in stock price since June 2025 [1] - The analyst now expects earnings to be impacted following the downgrade [1]

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]

Financial Performance - Amalgamated Financial reported quarterly earnings of $0.88 per share, missing the Zacks Consensus Estimate of $0.90 per share, but showing an increase from $0.85 per share a year ago, resulting in an earnings surprise of -2.22% [1] - The company posted revenues of $80.93 million for the quarter ended June 2025, which was below the Zacks Consensus Estimate by 1.65%, compared to $78.45 million in the same quarter last year [2] Market Performance - Amalgamated Financial shares have decreased by approximately 0.8% since the beginning of the year, while the S&P 500 has gained 8.1% [3] - The company's current Zacks Rank is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.92 on revenues of $83.08 million, and for the current fiscal year, it is $3.65 on revenues of $329.15 million [7] - The trend of estimate revisions for Amalgamated Financial was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Financial - SBIC & Commercial Industry, to which Amalgamated Financial belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges ahead [8]