Amalgamated Financial (AMAL) - 2025 Q3 - Quarterly Results

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 |