Amalgamated Financial (US:AMAL)2025-11-04 13:28Financial Performance - Net income for Q3 2025 was $26.8 million, or $0.88 per diluted share, compared to $27.9 million, or $0.90 per diluted share for Q3 2024, reflecting a decrease of $1.2 million[173]. - For the nine months ended September 30, 2025, net income was $77.8 million, or $2.53 per diluted share, down from $81.9 million, or $2.65 per diluted share for the same period in 2024, a decrease of $4.1 million[174]. - Non-interest income for the third quarter of 2025 was $9.2 million, up from $8.9 million in Q3 2024, attributed to a decrease in losses on sale of loans and an increase in equity investments income[194]. - Non-interest income for the nine months ended September 30, 2025, was $23.6 million, a decrease of $4.8 million compared to $28.4 million for the same period in 2024[195]. Asset and Loan Growth - As of September 30, 2025, total assets were $8.68 billion, total loans net of allowance for credit losses were $4.73 billion, total deposits were $7.77 billion, and stockholders' equity was $775.6 million[153]. - Total assets increased to $8.68 billion as of September 30, 2025, up from $8.26 billion at the end of 2024, with notable increases in deposits and securities[202]. - Total loans receivable increased by $119.5 million from December 31, 2024, reflecting growth in the loan portfolio[202]. - Total loans, net of deferred origination fees and costs, increased to $4.73 billion as of September 30, 2025, compared to $4.61 billion at December 31, 2024, marking a growth of 2.6%[217]. Credit Quality and Loss Provisions - The provision for credit losses increased by $3.5 million in Q3 2025 and by $4.2 million for the nine months ended September 30, 2025, indicating a growing concern over credit quality[173][174]. - Provision for credit losses increased to $5.3 million in Q3 2025 from $1.8 million in Q3 2024, mainly due to charge-offs in consumer solar and business banking portfolios[189]. - The allowance for credit losses decreased by $3.6 million to $56.5 million at September 30, 2025, with a ratio of allowance to total loans at 1.18%[230]. - Potential problem loans amounted to $150.6 million, or 1.7% of total assets, at September 30, 2025, compared to $109.4 million, or 1.3% at December 31, 2024[235][236]. Interest Income and Margins - Net interest income for Q3 2025 was $76.4 million, a 6.0% increase from $72.1 million in Q3 2024, driven by higher yields and average balances on interest-earning assets[178]. - The net interest spread increased to 2.51% in Q3 2025 from 1.90% in Q3 2024, an increase of 61 basis points[179]. - The net interest margin for Q3 2025 was 3.60%, up 9 basis points from 3.51% in Q3 2024, attributed to increases in yields and average balances on interest-earning assets[179]. - Interest income for the third quarter of 2025 was $6.8 million, an increase of $4.3 million compared to the same period in 2024, primarily driven by a net increase in total loans[187]. Deposits and Liquidity - Total deposits increased to $7.77 billion at September 30, 2025, up from $7.18 billion at December 31, 2024[240]. - Estimated uninsured deposits were $4.07 billion at September 30, 2025, an increase from $3.71 billion at December 31, 2024[243]. - The liquidity position is supported by management of liquid assets and access to alternative funding sources, ensuring adequate liquidity to meet current and future needs[252]. - Total liquidity available within two days was $4.15 billion, covering 102% of total uninsured deposits[255]. Securities and Investments - The company had available-for-sale securities of $1.98 billion as of September 30, 2025, compared to $1.63 billion at the end of 2024[206]. - Total securities increased to $3.50 billion as of September 30, 2025, up from $3.22 billion at December 31, 2024, representing a growth of 8.6%[214]. - The company purchased $826.7 million in securities during the nine months ended September 30, 2025, compared to $793.4 million in the same period of 2024, reflecting a 4.2% increase[207]. - The company reported a net realized loss of $2.9 million from the sale of available-for-sale securities during the nine months ended September 30, 2025, compared to a loss of $8.7 million in the same period of 2024[207]. Capital and Equity - Total stockholders' equity rose to $775.6 million at September 30, 2025, compared to $707.7 million at December 31, 2024, an increase of $67.9 million[256]. - The company maintained a Tier 1 capital to risk-weighted assets ratio of 14.21% as of September 30, 2025, exceeding the minimum requirement of 6.00%[259]. - The company is categorized as "well capitalized" under prompt corrective action measures and meets capital conservation buffer requirements[260]. Operational and Strategic Initiatives - The Company is committed to being a socially responsible financial partner, holding B Corporation certification and being a member of the Global Alliance for Banking on Values[156]. - The Company operates three branch offices in New York City, one in Washington, D.C., one in San Francisco, and a commercial office in Boston, alongside a digital banking platform[154]. - The Company offers a wide range of investment products, including both index and actively-managed funds, tailored to socially responsible clients[155]. - The company entered into a fifteen-year lease agreement for its headquarters, with a base rent commencing at $6.2 million per annum, escalating by approximately 9% and 8% at specified intervals[261].