Amalgamated Financial (US:AMAL)2025-10-23 16:00Financial Data and Key Metrics Changes - Core earnings per share for Q3 2025 was $0.91, with year-to-date core EPS at $2.66, reflecting a 3% growth compared to the previous year [3][9] - Net income was reported at $26.8 million, or $0.88 per diluted share, while core net income was $27.6 million, or $0.91 per diluted share [9] - Net interest income increased by 4.9% to $76.4 million, with a net interest margin rising by 5 basis points to 3.6% [9][10] - Non-performing assets decreased by $12.2 million, or 34.6%, to $23 million, representing 0.26% of total assets [4][10] Business Line Data and Key Metrics Changes - Loans grew by $99 million across growth mode portfolios, achieving a 3.3% growth rate, up from 2.1% in the previous quarter [5][6] - The PACE portfolio saw total assessments grow by $27.4 million, with CPACE growing over 8% [5] - Deposits increased by $415 million, with notable growth in the political segment (19% increase) and climate and sustainability segment (21% increase) [6][10] Market Data and Key Metrics Changes - Total on-balance sheet deposits increased by $149 million, or 1.9%, to $7.6 billion [10] - The tangible book value per share increased by $0.98, or 4%, to $25.31, marking a 46% growth since September 2021 [10] Company Strategy and Development Direction - The company is investing in a fully integrated digital modernization platform to enhance productivity and customer understanding [7] - The focus remains on maintaining a balanced and predictable contribution from lending channels while managing geographic diversity [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting strong deposit growth and a solid credit portfolio [6][7] - The company raised its full-year 2025 core pre-tax pre-provision earnings guidance to $164 to $165 million [16] Other Important Information - The allowance for credit losses on loans decreased by $2.5 million to $56.5 million, with a ratio of 1.18% [15] - The company plans to continue share buybacks until the share price reflects forward earnings projections [11] Q&A Session Summary Question: Specific reserve mentioned on page 11 - The specific reserve of $1.9 million is related to a multifamily property with an updated appraisal indicating a change in LTV [19][20] Question: Impact of potential rent freezes in New York City - Management does not expect significant impact in the next 18 to 24 months and is monitoring the situation closely [21][22][23] Question: Concerns about federal funding for green energy projects - Existing projects are secure as funding streams are locked in, and the company is seeing acceleration in project transactions [24][25][26][30] Question: Positioning against regulatory scrutiny - The company focuses on compliance with laws and regulations, emphasizing solid performance and risk management [31][32] Question: Expense management and guidance - Expenses are on track with the $170 million annual target, with potential upside if Q4 expenses align with Q3 [35][39] Question: Loan yields and new originations - Loan yields are expected to decline due to anticipated rate cuts, with current origination yields remaining strong [40][42]