Amalgamated Financial (AMAL)2025-04-24 10:27Financial 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].