Amalgamated Financial (US:AMAL)2025-10-23 16:02Financial 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] 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] - The PACE portfolio saw total assessments grow by $27.4 million, with CPACE growing over 8% [5] - Deposits increased by over $415 million, with notable growth in the political segment (up $235 million, or 19%) and climate and sustainability segment (up $86 million, or 21%) [6] 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 [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] - Management is focused on maintaining a balanced and predictable contribution from lending channels while monitoring the policy debate in New York City [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the bank's performance and growth potential, emphasizing the quality and sustainability of earnings [3][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 bank received a revised outlook to positive from KBRA during its annual credit rating surveillance report [14] Q&A Session Summary Question: What is the $1.9 million specific reserve against? - The specific reserve is related to a multifamily property with an updated appraisal indicating a change in loan-to-value [20] Question: How would a rent freeze impact the rent-regulated multifamily business? - Management does not expect significant impact in the next 18 to 24 months and sees potential upside in balanced housing approaches [23][24] Question: Concerns about federal funding for green energy projects? - Management is confident in existing projects as funding streams are locked in, and they see continued demand for financing in the renewable energy sector [26][28] Question: How to position the company against regulatory scrutiny? - The company focuses on compliance with laws and regulations, emphasizing strong performance and risk management [31][32] Question: Insights on expenses and future guidance? - Expenses are on track with the $170 million annual target, with potential upside if Q4 expenses align with Q3 [40][41] Question: Expectations for loan yields and new originations? - Loan yields are expected to decline due to anticipated rate cuts, with strong origination performance noted in the C&I portfolio [42][44]