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

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

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

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

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

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

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

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

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

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