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

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

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

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

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

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]