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 [5][16] - 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 [16] - Net interest income increased by 4.9% to $76.4 million, with net interest margin rising by five basis points to 3.6% [16][17] - Non-performing assets decreased by 34.6% to $12.2 million, representing 0.26% of total assets, and credit quality improved to $79.2 million or 1.67% of total loans [8][16] Business Line Data and Key Metrics Changes - Loans grew by $99 million across multifamily, commercial real estate (CRE), and commercial and industrial (C&I) portfolios, marking a 3.3% growth [11] - The PACE portfolio saw total assessments grow by $27.4 million, with C-PACE growing over 8% [11] - Deposits increased by $415 million, with notable growth in the political segment (19% increase) and climate and sustainability segment (21% increase) [12] Market Data and Key Metrics Changes - Total on-balance sheet deposits increased by $149 million or 1.9% to $7.6 billion, with an additional $265 million held off-balance sheet [17] - The average spot rate paid in deposits declined by eight basis points following a Fed rate cut [17] Company Strategy and Development Direction - The company is investing in a fully integrated digital modernization program to improve productivity and customer understanding [13] - Geographic diversity is emphasized to manage future loan growth targets, with a focus on the evolving policy landscape in New York City [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the bank's performance and ability to handle challenges, noting the importance of transparency in credit disclosures [9][14] - The company raised its full-year 2025 core pre-tax pre-provision earnings guidance to $164-$165 million and tightened net interest income guidance to $295-$296 million [23] Other Important Information - The tangible book value per share increased by 4% to $25.31, with a 46% growth since the previous CEO's first full quarter [17] - The allowance for credit losses on loans decreased to $56.5 million, with a ratio of 1.18% [22] Q&A Session Summary Question: Specific reserve mentioned on Page 11 - The specific reserve of $1.9 million is related to a multifamily property that underwent an appraisal, leading to a change in loan-to-value (LTV) [27][28] Question: Impact of potential rent freezes in New York - Management does not expect significant impact from potential rent freezes in the next 18-24 months, citing other tools for housing development [30][32] Question: Concerns about federal funding for green energy projects - Management reassured that existing projects are secure as they are already underway, despite federal funding changes [37][41] Question: Positioning against regulatory scrutiny - The company focuses on compliance with laws and regulations, emphasizing strong performance and risk management to mitigate regulatory risks [43][44] Question: Expense management and future projections - Management indicated that expenses are on track with the annual target of $170 million, with potential upside if expenses remain consistent [47][50] Question: Loan yields and new originations - Loan yields are expected to decline due to anticipated rate cuts, with current origination yields remaining strong [52][56]