Amalgamated Financial Corp. Reports First Quarter 2025 Financial Results; $446 Million Total Deposit Growth; Strong Margin at 3.55%

Common Equity Tier 1 Capital Ratio of 14.27% | Tangible Common Equity Ratio of 8.73%

/EIN News/ -- NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) -- Amalgamated Financial Corp. (the “Company” or “Amalgamated”) (Nasdaq: AMAL), the holding company for Amalgamated Bank (the “Bank”), today announced financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Highlights (on a linked quarter basis)

• Net income of $25.0 million, or $0.81 per diluted share, compared to $24.5 million, or $0.79 per diluted share.
• Core net income¹ of $27.1 million, or $0.88 per diluted share, compared to $28.0 million, or $0.90 per diluted share.

       Deposits and Liquidity

• On-balance sheet deposits increased $231.5 million, or 3.2%, to $7.4 billion.
• Off-balance sheet deposits were $214.5 million at the end of the quarter, comprised of mainly not-for-profit deposits and some political deposits.
• Including deposits held off-balance sheet, total deposits increased $445.9 million, or 6.2%, to $7.6 billion.
• Political deposits increased $102.7 million, or 11%, to $1.1 billion, which includes both on and off-balance sheet deposits.
• Average cost of deposits, excluding Brokered CDs and off-balance sheet deposits, increased 7 basis points to 159 basis points, where non-interest-bearing deposits comprised 39% of total deposits.
• Cash and borrowing capacity totaled $3.3 billion (immediately available) plus unpledged securities (two-day availability) of $301.0 million for total liquidity within two-days of $3.6 billion.
• Total two-day liquidity is 94% of total uninsured deposits, and 164% of uninsured non-super core deposits¹.

      Assets and Margin

• Net interest margin decreased 4 basis points to 3.55%, as expected.
• Net interest income decreased by $2.5 million, or 3.4%, to $70.6 million, as expected.
• Net loans receivable increased $7.0 million, or 0.2%, to $4.6 billion.
• Net loans in growth mode (commercial and industrial, commercial real estate, and multifamily) increased $25.8 million or 0.9%.
• Total PACE assessments grew $3.2 million, or 0.3%, to $1.2 billion.
• The multifamily and commercial real estate loan portfolios totaled $1.8 billion and had a concentration of 199% to total risk based capital.

       Capital and Returns

• Tier 1 leverage ratio of 9.22%, increased by 22 basis points, and Common Equity Tier 1 ratio of 14.27%.
• Tangible common equity¹ ratio increased to 8.73%, representing a tenth consecutive quarter of improvement.
• Tangible book value per share¹ increased $0.91, or 4.0%, to $23.51, and has increased $6.18, or 35.7% since September 2021.
• Core return on average tangible common equity¹ of 15.54% and core return on average assets¹ of 1.33%.

Share Repurchase

• Repurchased approximately 105,000 shares, or $3.5 million of common stock, through March 31, 2025.
• On March 10, 2025, a new $40 million share repurchase program was approved, under which approximately 75,000 shares have been repurchased from April 1 through April 22, 2025.

Priscilla Sims Brown, President and Chief Executive Officer, commented, “All of our key earnings metrics came in strong and as expected, showing again that at Amalgamated, we do what we say we will. Our balance sheet boasts a low-risk asset profile including low commercial real-estate lending concentration, high levels of immediate and two-day liquidity, and return metrics near the top of our peer stack.”

First Quarter Earnings

Net income was $25.0 million, or $0.81 per diluted share, compared to $24.5 million, or $0.79 per diluted share, for the prior quarter. The $0.5 million increase during the quarter was primarily driven by a $3.1 million decrease in provision for credit losses, as well as a $0.8 million net valuation gain on residential loans sold during the quarter, compared to a $4.1 million reduction in fair value on residential loans moved to held for sale in the previous quarter. This was offset by an expected $2.5 million decrease in net interest income, an expected $1.9 million decrease in non-core income from solar tax equity investments, an expected $1.3 million decrease in non-core ICS One-Way Sell fee income from off-balance sheet deposits, and a $1.1 million increase in income tax expense.

Core net income¹ was $27.1 million, or $0.88 per diluted share, compared to $28.0 million, or $0.90 per diluted share, for the prior quarter. Excluded from core net income for the quarter, pre-tax, was $2.9 million of accelerated depreciation from solar tax equity investments, a $0.8 million net valuation gain from residential loans sold during the quarter, and $0.7 million of losses on the sale of securities. Excluded from core net income for the fourth quarter of 2024, pre-tax, was a $4.1 million reduction in fair value on a pool of lower yielding performing residential loans moved to held for sale, $1.3 million of ICS One-Way Sell fee income, $1.0 million of losses on the sale of securities, and $0.9 million of accelerated depreciation from solar tax equity investments.

Net interest income was $70.6 million, compared to $73.1 million for the prior quarter. This decrease was expected as interest bearing off-balance sheet deposits moved back on balance sheet towards the end of the fourth quarter to replace largely non-interest bearing deposit outflow related to the election cycle conclusion and the full effect of interest rate resets from the prior quarter were recognized. Loan interest income and loan yields remained flat mainly as a $75.5 million increase in average loan balances was offset by paydowns on shorter-term high yielding commercial & industrial loans and a shorter day count in the quarter. Interest income on securities decreased $1.8 million driven by a decrease in the average balance of securities of $92.8 million. Interest expense on total interest-bearing deposits increased $0.3 million driven by an increase in the average balance of total interest-bearing deposits of $272.3 million partially offset by a 9 basis point decrease in cost. Additionally, while the average balance of borrowings increased $35.6 million, all short-term borrowings utilized at year-end were paid off over the course of the quarter. Remaining borrowings now substantially consist of lower-cost subordinated debt priced at 3.25% with a fixed rate maturity in November 2026.

Net interest margin was 3.55%, an expected decrease of 4 basis points from 3.59% in the prior quarter. The decrease is largely due to a higher average balance of interest-bearing deposits as noted above, a $338.2 million decrease in non-interest bearing deposits, as well as a higher cost of funds. Prepayment penalties had no impact on net interest margin in the current quarter, compared to a one basis point impact in the prior quarter.

Provision for credit losses totaled an expense of $0.6 million, compared to an expense of $3.7 million in the prior quarter. The expense in the first quarter was primarily driven by charge-offs on the consumer solar and small business portfolios, as well as increases in reserves for one leveraged commercial and industrial loan, offset by improvements in macro-economic forecasts used in the CECL model, primarily related to the consumer solar loan portfolio, which can be volatile.

Non-interest income was $6.4 million, compared to $4.8 million in the prior quarter. Excluding all non-core income adjustments noted above, core non-interest income¹ was $9.1 million, compared to $9.5 million in the prior quarter. The decrease was primarily related to lower commercial banking fees, offset by modestly higher income from Trust fees.

Non-interest expense was $41.7 million, an increase of $0.5 million from the prior quarter. Core non-interest expense¹ was $41.5 million, an increase of $0.4 million from the prior quarter. This was mainly driven by a $2.1 million increase in professional fees related to expected increases in digital transformation deployment and partnership costs to evaluate growth requirements and other advisory services. This increase is mainly offset by a $1.4 million decrease in compensation and employee benefits expense.

Provision for income tax expense was $9.7 million, compared to $8.6 million for the prior quarter. The effective tax rate was 28.0%, compared to 25.9% in the prior quarter. The increase in the tax rate was the result of a higher annual effective tax rate for 2025, in addition to discrete tax items related to a city and state tax examination which led to a net increase in tax provision in the current quarter, as well as additional discrete items in the prior quarter which resulted in a tax benefit. Excluding these discrete items, the tax rate would have been 27.0%, compared to 26.6% in the prior quarter.

Balance Sheet Quarterly Summary

Total assets were $8.3 billion at March 31, 2025, compared to $8.3 billion at December 31, 2024, keeping the balance sheet neutral. Notable changes within individual balance sheet line items include a $65.1 million increase in securities and a $17.9 million increase in resell agreements to solidify net interest income, as well as a $7.0 million increase in net loans receivable. On the liabilities side, on-balance sheet deposits increased by $231.5 million while borrowings decreased by $244.7 million. Off-balance sheet deposits increased to $214.5 million in the quarter.

Total net loans receivable at March 31, 2025 were $4.6 billion, an increase of $7.0 million, or 0.2% for the quarter. The increase in loans is primarily driven by a $20.3 million increase in multifamily loans, and a $7.8 million increase in commercial and industrial loans, offset by a $2.4 million decrease in commercial real estate loans, a $8.9 million decrease in consumer solar loans, and a $9.8 million decrease in residential loans. During the quarter, criticized or classified loans decreased $12.0 million, largely related to payoffs of three delinquent commercial and industrial loans totaling $10.1 million, the upgrade of one $1.4 million commercial & industrial loan, charge-offs of small business loans totaling $0.8 million, and a decrease of $4.5 million in residential and consumer substandard loans. This was offset by the downgrade of one $4.2 million commercial & industrial loan to special mention, and additional downgrades of small business loans totaling $1.0 million.

Total on-balance sheet deposits at March 31, 2025 were $7.4 billion, an increase of $231.5 million, or 3.2%, during the quarter. Including accounts currently held off-balance sheet, deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $1.1 billion as of March 31, 2025, an increase of $102.7 million during the quarter. Non-interest-bearing deposits represented 39% of average total deposits and 39% of ending total deposits for the quarter, contributing to an average cost of total deposits of 159 basis points. Super-core deposits¹ totaled approximately $4.0 billion, had a weighted average life of 18 years, and comprised 54% of total deposits, excluding Brokered CDs. Total uninsured deposits were $3.9 billion, comprising 52% of total deposits.

Nonperforming assets totaled $33.9 million, or 0.41% of period-end total assets at March 31, 2025, an increase of $8.0 million, compared with $25.9 million, or 0.31% on a linked quarter basis. The increase in nonperforming assets was primarily driven by an $11.8 million increase in commercial & industrial non-accrual loans, including one $8.3 million commercial & industrial loan that was placed on non-accrual in the quarter. This was offset by the sale of $3.9 million in nonperforming residential loans that were reported as held-for-sale in the prior quarter.

During the quarter, the allowance for credit losses on loans decreased $2.4 million to $57.7 million. The ratio of allowance to total loans was 1.23%, a decrease of 6 basis points from 1.29% in the fourth quarter of 2024. The decrease was primarily the result of improvements in the macroeconomic forecasts used in the CECL model, mainly related to the consumer solar loan portfolio, which can be volatile, offset by charge-offs on consumer solar and small business portfolios, as well as increases in reserves for one legacy leveraged commercial and industrial loan.

Capital Quarterly Summary

As of March 31, 2025, the Common Equity Tier 1 Capital ratio was 14.27%, the Total Risk-Based Capital ratio was 16.61%, and the Tier 1 Leverage Capital ratio was 9.22%, compared to 13.90%, 16.26% and 9.00%, respectively, as of December 31, 2024. Stockholders’ equity at March 31, 2025 was $736.0 million, an increase of $28.3 million during the quarter. The increase in stockholders’ equity was primarily driven by $25.0 million of net income for the quarter and a $11.3 million improvement in accumulated other comprehensive loss due to the tax-effected mark-to-market on available for sale securities, offset by $4.3 million in dividends paid at $0.14 per outstanding share.

Tangible book value per share¹ was $23.51 as of March 31, 2025 compared to $22.60 as of December 31, 2024. Tangible common equity¹ improved to 8.73% of tangible assets, compared to 8.41% as of December 31, 2024.

Conference Call

As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its first quarter 2025 results today, April 24, 2025 at 11:00am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. First Quarter 2025 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13752421. The telephonic replay will be available until May 1, 2025.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at https://ir.amalgamatedbank.com/. The online replay will remain available for a limited time beginning immediately following the call.

The presentation materials for the call can be accessed on the investor relations section of the Company’s website at https://ir.amalgamatedbank.com/.

About Amalgamated Financial Corp.

Amalgamated Financial Corp. is a Delaware public benefit corporation and a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank. Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country's oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. As of March 31, 2025, total assets were $8.3 billion, total net loans were $4.6 billion, and total deposits were $7.4 billion. Additionally, as of March 31, 2025, the trust business held $35.7 billion in assets under custody and $14.2 billion in assets under management.

Non-GAAP Financial Measures

This release (and the accompanying financial information and tables) refer to certain non-GAAP financial measures including, without limitation, “Core operating revenue,” “Core non-interest expense,” “Core non-interest income,” “Core net income,” “Tangible common equity,” “Average tangible common equity,” “Core return on average assets,” “Core return on average tangible common equity,” and “Core efficiency ratio.”

Management utilizes this information to compare operating performance for March 31, 2025 versus certain periods in 2024 and to prepare internal projections. The Company believes these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of operating performance. In addition, because intangible assets such as goodwill and other discrete items unrelated to core business, which are excluded, vary extensively from company to company, the Company believe that the presentation of this information allows investors to more easily compare results to those of other companies.

The presentation of non-GAAP financial information, however, is not intended to be considered in isolation or as a substitute for GAAP financial measures. The Company strongly encourage readers to review the GAAP financial measures included in this release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this release with other companies’ non-GAAP financial measures having the same or similar names. Reconciliations of non-GAAP financial disclosures to comparable GAAP measures found in this release are set forth in the final pages of this release and also may be viewed on the Company’s website, amalgamatedbank.com.

Terminology

Certain terms used in this release are defined as follows:

“Core efficiency ratio” is defined as “Core non-interest expense” divided by “Core operating revenue.” The Company believes the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income.

“Core net income” is defined as net income after tax excluding gains and losses on sales of securities, ICS One-Way Sell fee income, changes in fair value on loans held-for-sale, gains on the sale of owned property, costs related to branch closures, restructuring/severance costs, acquisition costs, tax credits and accelerated depreciation on solar equity investments, and taxes on notable pre-tax items. The Company believes the most directly comparable GAAP financial measure is net income.

“Core non-interest expense” is defined as total non-interest expense excluding costs related to branch closures, and restructuring/severance. The Company believes the most directly comparable GAAP financial measure is total non-interest expense.

“Core non-interest income” is defined as total non-interest income excluding gains and losses on sales of securities, ICS One-Way Sell fee income, changes in fair value on loans held-for-sale, gains on the sale of owned property, and tax credits and accelerated depreciation on solar equity investments. The Company believes the most directly comparable GAAP financial measure is non-interest income.

“Core operating revenue” is defined as total net interest income plus “core non-interest income”. The Company believes the most directly comparable GAAP financial measure is the total of net interest income and non-interest income.

“Core return on average assets” is defined as “Core net income” divided by average total assets. The Company believes the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets.

“Core return on average tangible common equity” is defined as “Core net income” divided by average “tangible common equity.” The Company believes the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders’ equity.

“Super-core deposits” are defined as total deposits from commercial and consumer customers, with a relationship length of greater than 5 years. The Company believes the most directly comparable GAAP financial measure is total deposits.

“Tangible assets” are defined as total assets excluding, as applicable, goodwill and core deposit intangibles. The Company believes the most directly comparable GAAP financial measure is total assets.

“Tangible common equity”, and “Tangible book value” are defined as stockholders’ equity excluding, as applicable, minority interests, goodwill and core deposit intangibles. The Company believes that the most directly comparable GAAP financial measure is total stockholders’ equity.

"Traditional securities portfolio" is defined as total investment securities excluding PACE assessments. The Company believes the most directly comparable GAAP financial measure is total investment securities.

Forward-Looking Statements

Statements included in this release that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified through the use of forward-looking terminology such as “may,” “will,” “anticipate,” “aspire,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “in the future,” “may” and “intend,” as well as other similar words and expressions of the future. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any or all of which could cause actual results to differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to:

1. uncertain conditions in the banking industry and in national, regional and local economies in core markets, which may have an adverse impact on business, operations and financial performance;
2. deterioration in the financial condition of borrowers resulting in significant increases in credit losses and provisions for those losses;
3. deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors;
4. changes in deposits, including an increase in uninsured deposits;
5. ability to maintain sufficient liquidity to meet deposit and debt obligations as they come due, which may require that the Company sell investment securities at a loss, negatively impacting net income, earnings and capital;
6. unfavorable conditions in the capital markets, which may cause declines in stock price and the value of investments;
7. negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumer confidence, the financial condition of borrowers and consumer spending habits, which may affect, among other things, the level of non-performing assets, charge-offs and provision expense;
8. fluctuations or unanticipated changes in the interest rate environment including changes in net interest margin or changes in the yield curve that affect investments, loans or deposits;
9. the general decline in the real estate and lending markets, particularly in commercial real estate in the Company’s market areas, and the effects of the enactment of or changes to rent-control and other similar regulations on multi-family housing;
10. potential implementation by the current presidential administration of a regulatory reform agenda that is significantly different from that of the prior presidential administration, impacting the rule making, supervision, examination and enforcement of the banking regulation agencies;
11. changes in U.S. trade policies and other global political factors beyond the Company’s control, including the imposition of tariffs, which raise economic uncertainty, potentially leading to slower growth and a decrease in loan demand;
12. the outcome of legal or regulatory proceedings that may be instituted against us;
13. inability to achieve organic loan and deposit growth and the composition of that growth;
14. composition of the Company’s loan portfolio, including any concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which the Company operates;
15. inaccuracy of the assumptions and estimates the Company makes and policies that the Company implements in establishing the allowance for credit losses;
16. changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments;
17. any matter that would cause the Company to conclude that there was impairment of any asset, including intangible assets;
18. limitations on the ability to declare and pay dividends;
19. the impact of competition with other financial institutions, including pricing pressures and the resulting impact on results, including as a result of compression to net interest margin;
20. increased competition for experienced members of the workforce including executives in the banking industry;
21. a failure in or breach of operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches;
22. increased regulatory scrutiny and exposure from the use of “big data” techniques, machine learning, and artificial intelligence;
23. a downgrade in the Company’s credit rating;
24. “greenwashing claims” against the Company and environmental, social, and governance ("ESG") products and increased scrutiny and political opposition to ESG and diversity, equity, and inclusion ("DEI") practices;
25. any unanticipated or greater than anticipated adverse conditions (including the possibility of earthquakes, wildfires, and other natural disasters) affecting the markets in which the Company operates;
26. physical and transitional risks related to climate change as they impact the business and the businesses that the Company finances;
27. future repurchase of the Company’s shares through the Company’s common stock repurchase program; and
28. descriptions of assumptions underlying or relating to any of the foregoing.

Additional factors which could affect the forward-looking statements can be found in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at https://www.sec.gov/. The Company disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:
Jamie Lillis
Solebury Strategic Communications
shareholderrelations@amalgamatedbank.com
800-895-4172

Consolidated Statements of Income (unaudited)
	Three Months Ended
	March 31,				December 31,				March 31,
($ in thousands)		2025				2024				2024
INTEREST AND DIVIDEND INCOME
Loans	$	57,843			$	58,024			$	51,952
Securities		41,653				43,448				42,390
Interest-bearing deposits in banks		1,194				1,113				2,592
Total interest and dividend income		100,690				102,585				96,934
INTEREST EXPENSE
Deposits		28,917				28,582				25,891
Borrowed funds		1,196				908				3,006
Total interest expense		30,113				29,490				28,897
NET INTEREST INCOME		70,577				73,095				68,037
Provision for credit losses		596				3,686				1,588
Net interest income after provision for credit losses		69,981				69,409				66,449
NON-INTEREST INCOME
Trust Department fees		4,191				3,971				3,854
Service charges on deposit accounts		3,438				5,337				6,136
Bank-owned life insurance income		626				661				609
Losses on sale of securities		(680	)			(1,003	)			(2,774	)
Gain (loss) on sale of loans and changes in fair value on loans held-for-sale, net		832				(4,090	)			47
Equity method investments income (loss)		(2,508	)			(529	)			2,072
Other income		507				442				285
Total non-interest income		6,406				4,789				10,229
NON-INTEREST EXPENSE
Compensation and employee benefits		23,314				24,691				22,273
Occupancy and depreciation		3,293				3,376				2,904
Professional fees		4,739				2,674				2,376
Technology		5,619				5,299				4,629
Office maintenance and depreciation		629				578				663
Amortization of intangible assets		144				183				183
Advertising and promotion		51				314				1,219
Federal deposit insurance premiums		900				715				1,050
Other expense		2,961				3,313				2,855
Total non-interest expense		41,650				41,143				38,152
Income before income taxes		34,737				33,055				38,526
Income tax expense		9,709				8,564				11,277
Net income	$	25,028			$	24,491			$	27,249
Earnings per common share - basic	$	0.82			$	0.80			$	0.89
Earnings per common share - diluted	$	0.81			$	0.79			$	0.89

Consolidated Statements of Financial Condition
($ in thousands)	March 31, 2025				December 31, 2024				March 31, 2024
Assets	(unaudited)								(unaudited)
Cash and due from banks	$	4,196			$	4,042			$	3,830
Interest-bearing deposits in banks		61,518				56,707				151,374
Total cash and cash equivalents		65,714				60,749				155,204
Securities:
Available for sale, at fair value
Traditional securities		1,546,127				1,477,047				1,445,793
Property Assessed Clean Energy (“PACE”) assessments		161,147				152,011				82,258
		1,707,274				1,629,058				1,528,051
Held-to-maturity, at amortized cost:
Traditional securities, net of allowance for credit losses of $47, $49, and $53, respectively		535,065				542,246				616,172
PACE assessments, net of allowance for credit losses of $654, $655, and $657, respectively		1,038,052				1,043,959				1,057,790
		1,573,117				1,586,205				1,673,962
Loans held for sale		3,667				37,593				2,137
Loans receivable, net of deferred loan origination costs		4,677,506				4,672,924				4,423,780
Allowance for credit losses		(57,676	)			(60,086	)			(64,400	)
Loans receivable, net		4,619,830				4,612,838				4,359,380
Resell agreements		41,651				23,741				131,242
Federal Home Loan Bank of New York ("FHLBNY") stock, at cost		4,679				15,693				4,603
Accrued interest receivable		55,092				61,172				53,436
Premises and equipment, net		7,366				6,386				7,128
Bank-owned life insurance		108,652				108,026				106,137
Right-of-use lease asset		12,477				14,231				19,797
Deferred tax asset, net		33,799				42,437				49,171
Goodwill		12,936				12,936				12,936
Intangible assets, net		1,343				1,487				2,034
Equity method investments		5,639				8,482				14,801
Other assets		31,991				35,858				16,663
Total assets	$	8,285,227			$	8,256,892			$	8,136,682
Liabilities
Deposits	$	7,412,072			$	7,180,605			$	7,305,765
Borrowings		69,676				314,409				139,705
Operating leases		17,190				19,734				27,250
Other liabilities		50,293				34,490				47,024
Total liabilities		7,549,231				7,549,238				7,519,744
Stockholders’ equity
Common stock, par value $0.01 per share		309				308				307
Additional paid-in capital		288,539				288,656				287,198
Retained earnings		500,783				480,144				412,190
Accumulated other comprehensive loss, net of income taxes		(47,308	)			(58,637	)			(78,872	)
Treasury stock, at cost		(6,327	)			(2,817	)			(4,018	)
Total Amalgamated Financial Corp. stockholders' equity		735,996				707,654				616,805
Noncontrolling interests		—				—				133
Total stockholders' equity		735,996				707,654				616,938
Total liabilities and stockholders’ equity	$	8,285,227			$	8,256,892			$	8,136,682

Select Financial Data
	As of and for the
	Three Months Ended
	March 31,			December 31,			March 31,
(Shares in thousands)		2025			2024			2024
Selected Financial Ratios and Other Data:
Earnings per share
Basic	$	0.82		$	0.80		$	0.89
Diluted		0.81			0.79			0.89
Core net income (non-GAAP)
Basic	$	0.88		$	0.91		$	0.84
Diluted		0.88			0.90			0.83
Book value per common share (excluding minority interest)	$	23.98		$	23.07		$	20.22
Tangible book value per share (non-GAAP)	$	23.51		$	22.60		$	19.73
Common shares outstanding, par value $0.01 per share(1)		30,697			30,671			30,510
Weighted average common shares outstanding, basic		30,682			30,677			30,476
Weighted average common shares outstanding, diluted		30,946			30,976			30,737
(1) 70,000,000 shares authorized; 30,940,480, 30,809,484, and 30,736,141 shares issued for the periods ended March 31, 2025, December 31, 2024, and March 31, 2024 respectively, and 30,696,940, 30,670,982, and 30,510,393 shares outstanding for the periods ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

Select Financial Data
	As of and for the									As of and for the
	Three Months Ended									Three Months Ended
	March 31,			December 31,			March 31,			March 31,
	2025			2024			2024			2025			2024
Selected Performance Metrics:
Return on average assets	1.22	%		1.17	%		1.36	%		1.22	%		1.36	%
Core return on average assets (non-GAAP)	1.33	%		1.34	%		1.27	%		1.33	%		1.27	%
Return on average equity	14.05	%		13.83	%		18.24	%		14.05	%		18.24	%
Core return on average tangible common equity (non-GAAP)	15.54	%		16.13	%		17.59	%		15.54	%		17.59	%
Average equity to average assets	8.71	%		8.48	%		7.44	%		8.71	%		7.44	%
Tangible common equity to tangible assets (non-GAAP)	8.73	%		8.41	%		7.41	%		8.73	%		7.41	%
Loan yield	5.00	%		5.00	%		4.76	%		5.00	%		4.76	%
Securities yield	5.15	%		5.12	%		5.21	%		5.15	%		5.21	%
Deposit cost	1.59	%		1.53	%		1.46	%		1.59	%		1.46	%
Net interest margin	3.55	%		3.59	%		3.49	%		3.55	%		3.49	%
Efficiency ratio(1)	54.10	%		52.83	%		48.75	%		54.10	%		48.75	%
Core efficiency ratio (non-GAAP)	52.11	%		49.82	%		50.40	%		52.11	%		50.40	%
Asset Quality Ratios:
Nonaccrual loans to total loans	0.70	%		0.45	%		0.75	%		0.70	%		0.75	%
Nonperforming assets to total assets	0.41	%		0.31	%		0.42	%		0.41	%		0.42	%
Allowance for credit losses on loans to nonaccrual loans	175.07	%		286.00	%		195.04	%		175.07	%		195.04	%
Allowance for credit losses on loans to total loans	1.23	%		1.29	%		1.46	%		1.23	%		1.46	%
Annualized net charge-offs to average loans	0.22	%		0.36	%		0.20	%		0.22	%		0.20	%
Capital Ratios:
Tier 1 leverage capital ratio	9.22	%		9.00	%		8.29	%		9.22	%		8.29	%
Tier 1 risk-based capital ratio	14.27	%		13.90	%		13.68	%		14.27	%		13.68	%
Total risk-based capital ratio	16.61	%		16.26	%		16.35	%		16.61	%		16.35	%
Common equity tier 1 capital ratio	14.27	%		13.90	%		13.68	%		14.27	%		13.68	%
(1)Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income

Loan and PACE Assessments Portfolio Composition
(In thousands)	At March 31, 2025							At December 31, 2024							At March 31, 2024
	Amount				% of total			Amount				% of total			Amount				% of total
Commercial portfolio:
Commercial and industrial	$	1,183,297			25.3	%		$	1,175,490			25.2	%		$	1,014,084			22.9	%
Multifamily		1,371,950			29.3	%			1,351,604			28.9	%			1,175,467			26.6	%
Commercial real estate		409,004			8.7	%			411,387			8.8	%			353,598			8.0	%
Construction and land development		20,690			0.4	%			20,683			0.4	%			23,266			0.5	%
Total commercial portfolio		2,984,941			63.8	%			2,959,164			63.3	%			2,566,415			58.0	%
Retail portfolio:
Residential real estate lending		1,303,856			27.9	%			1,313,617			28.1	%			1,419,321			32.1	%
Consumer solar		356,601			7.6	%			365,516			7.8	%			398,501			9.0	%
Consumer and other		32,108			0.7	%			34,627			0.8	%			39,543			0.9	%
Total retail portfolio		1,692,565			36.2	%			1,713,760			36.7	%			1,857,365			42.0	%
Total loans held for investment		4,677,506			100.0	%			4,672,924			100.0	%			4,423,780			100.0	%
Allowance for credit losses		(57,676	)						(60,086	)						(64,400	)
Loans receivable, net	$	4,619,830						$	4,612,838						$	4,359,380
PACE assessments:
Available for sale, at fair value
Residential PACE assessments		161,147			13.4	%			152,011			12.7	%			82,258			7.2	%
Held-to-maturity, at amortized cost
Commercial PACE assessments		271,200			22.6	%			268,692			22.5	%			256,661			22.5	%
Residential PACE assessments		767,507			64.0	%			775,922			64.8	%			801,786			70.3	%
Total Held-to-maturity PACE assessments		1,038,707			86.6	%			1,044,614			87.3	%			1,058,447			92.8	%
Total PACE assessments		1,199,854			100.0	%			1,196,625			100.0	%			1,140,705			100.0	%
Allowance for credit losses		(654	)						(655	)						(657	)
Total PACE assessments, net	$	1,199,200						$	1,195,970						$	1,140,048
Loans receivable, net and total PACE assessments, net as a % of Deposits		78.5	%						80.9	%						75.3	%
Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs		78.5	%						80.9	%						77.0	%

Net Interest Income Analysis
	Three Months Ended
	March 31, 2025									December 31, 2024									March 31, 2024
(In thousands)	Average Balance		Income / Expense				Yield / Rate			Average Balance		Income / Expense				Yield / Rate			Average Balance		Income / Expense				Yield / Rate
Interest-earning assets:
Interest-bearing deposits in banks	$	121,321		$	1,194		3.99	%		$	105,958		$	1,113		4.18	%		$	205,369		$	2,592		5.08	%
Securities(1)		3,220,590			40,867		5.15	%			3,313,349			42,632		5.12	%			3,170,356			41,064		5.21	%
Resell agreements		30,169			786		10.57	%			50,938			816		6.37	%			79,011			1,326		6.75	%
Loans receivable, net(2)		4,695,264			57,843		5.00	%			4,619,723			58,024		5.00	%			4,390,489			51,952		4.76	%
Total interest-earning assets		8,067,344			100,690		5.06	%			8,089,968			102,585		5.04	%			7,845,225			96,934		4.97	%
Non-interest-earning assets:
Cash and due from banks		5,045									6,291									5,068
Other assets		220,589									214,868									226,270
Total assets	$	8,292,978								$	8,311,127								$	8,076,563
Interest-bearing liabilities:
Savings, NOW and money market deposits	$	4,242,786		$	26,806		2.56	%		$	3,971,128		$	26,329		2.64	%		$	3,591,551		$	21,872		2.45	%
Time deposits		232,683			2,111		3.68	%			220,205			2,085		3.77	%			188,045			1,576		3.37	%
Brokered CDs		—			—		0.00	%			11,822			169		5.69	%			190,240			2,443		5.16	%
Total interest-bearing deposits		4,475,469			28,917		2.62	%			4,203,155			28,583		2.71	%			3,969,836			25,891		2.62	%
Borrowings		134,340			1,196		3.61	%			98,768			908		3.66	%			288,093			3,006		4.20	%
Total interest-bearing liabilities		4,609,809			30,113		2.65	%			4,301,923			29,491		2.73	%			4,257,929			28,897		2.73	%
Non-interest-bearing liabilities:
Demand and transaction deposits		2,901,061									3,239,251									3,138,238
Other liabilities		59,728									65,580									79,637
Total liabilities		7,570,598									7,606,754									7,475,804
Stockholders' equity		722,380									704,373									600,759
Total liabilities and stockholders' equity	$	8,292,978								$	8,311,127								$	8,076,563
Net interest income / interest rate spread				$	70,577		2.41	%					$	73,094		2.31	%					$	68,037		2.24	%
Net interest-earning assets / net interest margin	$	3,457,535					3.55	%		$	3,788,045					3.59	%		$	3,587,296					3.49	%
Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs	$	7,376,530					1.59	%		$	7,430,584					1.52	%		$	6,917,834					1.36	%
Total deposits / total cost of deposits	$	7,376,530					1.59	%		$	7,442,406					1.53	%		$	7,108,074					1.46	%
Total funding / total cost of funds	$	7,510,870					1.63	%		$	7,541,174					1.56	%		$	7,396,167					1.57	%

(1) Includes Federal Home Loan Bank (FHLB) stock in the average balance, and dividend income on FHLB stock in interest income.
(2) Includes prepayment penalty interest income in 1Q2025, 4Q2024, or 1Q2024 of $0, $121, and $18, respectively (in thousands).

Deposit Portfolio Composition
	Three Months Ended
(In thousands)	March 31, 2025						December 31, 2024						March 31, 2024
	Ending Balance			Average Balance			Ending Balance			Average Balance			Ending Balance			Average Balance
Non-interest-bearing demand deposit accounts	$	2,895,757		$	2,901,061		$	2,868,506		$	3,239,251		$	3,182,047		$	3,138,238
NOW accounts		187,078			177,827			179,765			174,963			200,900			197,659
Money market deposit accounts		3,772,423			3,739,548			3,564,423			3,471,242			3,222,271			3,051,670
Savings accounts		330,410			325,411			328,696			324,922			341,054			342,222
Time deposits		226,404			232,683			239,215			220,205			197,265			188,045
Brokered certificates of deposit ("CDs")		—			—			—			11,822			162,228			190,240
Total deposits	$	7,412,072		$	7,376,530		$	7,180,605		$	7,442,405		$	7,305,765		$	7,108,074
Total deposits excluding Brokered CDs	$	7,412,072		$	7,376,530		$	7,180,605		$	7,430,583		$	7,143,537		$	6,917,834

	Three Months Ended
	March 31, 2025						December 31, 2024						March 31, 2024
(In thousands)	Average Rate Paid(1)			Cost of Funds			Average Rate Paid(1)			Cost of Funds			Average Rate Paid(1)			Cost of Funds
Non-interest bearing demand deposit accounts	0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
NOW accounts	0.72	%		0.70	%		0.72	%		0.81	%		1.05	%		1.03	%
Money market deposit accounts	2.73	%		2.76	%		2.67	%		2.85	%		2.96	%		2.67	%
Savings accounts	1.28	%		1.28	%		1.32	%		1.37	%		1.34	%		1.29	%
Time deposits	3.52	%		3.68	%		3.54	%		3.77	%		3.44	%		3.37	%
Brokered CDs	—	%		—	%		—	%		5.69	%		4.99	%		5.16	%
Total deposits	1.57	%		1.59	%		1.52	%		1.53	%		1.60	%		1.46	%
Interest-bearing deposits excluding Brokered CDs	2.58	%		2.62	%		2.54	%		2.70	%		2.75	%		2.50	%

⁽¹⁾ Average rate paid is calculated as the weighted average of spot rates on deposit accounts. Off-balance sheet deposits are excluded from all calculations shown.

Asset Quality
(In thousands)	March 31, 2025			December 31, 2024			March 31, 2024
Loans 90 days past due and accruing	$	—		$	—		$	—
Nonaccrual loans held for sale		989			4,853			989
Nonaccrual loans - Commercial		27,872			16,041			24,228
Nonaccrual loans - Retail		5,072			4,968			8,791
Nonaccrual securities		7			8			31
Total nonperforming assets	$	33,940		$	25,870		$	34,039
Nonaccrual loans:
Commercial and industrial	$	12,786		$	872		$	8,750
Commercial real estate		3,979			4,062			4,354
Construction and land development		11,107			11,107			11,124
Total commercial portfolio		27,872			16,041			24,228
Residential real estate lending		1,375			1,771			4,763
Consumer solar		3,479			2,827			3,852
Consumer and other		218			370			176
Total retail portfolio		5,072			4,968			8,791
Total nonaccrual loans	$	32,944		$	21,009		$	33,019

Credit Quality
	March 31, 2025			December 31, 2024			March 31, 2024
($ in thousands)
Criticized and classified loans
Commercial and industrial	$	55,157		$	62,614		$	62,242
Multifamily		8,540			8,573			10,274
Commercial real estate		3,979			4,062			8,475
Construction and land development		11,107			11,107			11,124
Residential real estate lending		1,375			6,387			4,763
Consumer solar		3,479			2,827			3,852
Consumer and other		218			370			176
Total loans	$	83,855		$	95,940		$	100,906

Criticized and classified loans to total loans
Commercial and industrial	1.18	%		1.34	%		1.41	%
Multifamily	0.18	%		0.18	%		0.23	%
Commercial real estate	0.09	%		0.09	%		0.19	%
Construction and land development	0.24	%		0.24	%		0.25	%
Residential real estate lending	0.03	%		0.14	%		0.11	%
Consumer solar	0.07	%		0.06	%		0.09	%
Consumer and other	—	%		0.01	%		0.01	%
Total loans	1.79	%		2.06	%		2.29	%

	March 31, 2025						December 31, 2024						March 31, 2024
	Annualized net charge- offs (recoveries) to average loans			ACL to total portfolio balance			Annualized net charge- offs (recoveries) to average loans			ACL to total portfolio balance			Annualized net charge- offs (recoveries) to average loans			ACL to total portfolio balance
Commercial and industrial	0.28	%		1.29	%		0.53	%		1.15	%		0.16	%		1.58	%
Multifamily	—	%		0.23	%		0.15	%		0.21	%		—	%		0.38	%
Commercial real estate	—	%		0.39	%		—	%		0.39	%		—	%		0.40	%
Construction and land development	—	%		6.05	%		(7.19)	%		6.06	%		—	%		3.67	%
Residential real estate lending	—	%		0.73	%		0.28	%		0.71	%		—	%		0.87	%
Consumer solar	1.90	%		7.01	%		1.71	%		7.96	%		1.67	%		6.72	%
Consumer and other	0.70	%		5.67	%		0.86	%		6.83	%		0.86	%		6.36	%
Total loans	0.22	%		1.23	%		0.36	%		1.29	%		0.20	%		1.46	%

Reconciliation of GAAP to Non-GAAP Financial Measures The information provided below presents a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure.
	As of and for the
	Three Months Ended
(in thousands)	March 31, 2025				December 31, 2024				March 31, 2024
Core operating revenue
Net Interest Income (GAAP)	$	70,577			$	73,095			$	68,037
Non-interest income (GAAP)		6,406				4,789				10,229
Add: Securities loss		680				1,003				2,774
Less: ICS One-Way Sell Fee Income(1)		(9	)			(1,347	)			(2,903	)
Less: Changes in fair value of loans held-for-sale(6)		(837	)			4,117				—
Add: Tax (credits) depreciation on solar investments(3)		2,868				920				(1,808	)
Core operating revenue (non-GAAP)	$	79,685			$	82,577			$	76,329
Core non-interest expense
Non-interest expense (GAAP)	$	41,650			$	41,143			$	38,152
Add: Gain on settlement of lease termination(4)		—				—				499
Less: Severance costs(5)		(125	)			(1	)			(184	)
Core non-interest expense (non-GAAP)	$	41,525			$	41,142			$	38,467
Core net income
Net Income (GAAP)	$	25,028			$	24,491			$	27,249
Add: Securities loss		680				1,003				2,774
Less: ICS One-Way Sell Fee Income(1)		(9	)			(1,347	)			(2,903	)
Less: Changes in fair value of loans held-for-sale(6)		(837	)			4,117				—
Less: Gain on settlement of lease termination(4)		—				—				(499	)
Add: Severance costs(5)		125				1				184
Add: Tax (credits) depreciation on solar investments(3)		2,868				920				(1,808	)
Less: Tax on notable items		(731	)			(1,217	)			607
Core net income (non-GAAP)	$	27,124			$	27,968			$	25,604
Tangible common equity
Stockholders' equity (GAAP)	$	735,996			$	707,654			$	616,938
Less: Minority interest		—				—				(133	)
Less: Goodwill		(12,936	)			(12,936	)			(12,936	)
Less: Core deposit intangible		(1,343	)			(1,487	)			(2,034	)
Tangible common equity (non-GAAP)	$	721,717			$	693,231			$	601,835
Average tangible common equity
Average stockholders' equity (GAAP)	$	722,380			$	704,373			$	600,759
Less: Minority interest		—				(132	)			(133	)
Less: Goodwill		(12,936	)			(12,936	)			(12,936	)
Less: Core deposit intangible		(1,413	)			(1,575	)			(2,123	)
Average tangible common equity (non-GAAP)	$	708,031			$	689,730			$	585,567

(1) Included in service charges on deposit accounts in the Consolidated Statements of Income
(2) Included in other income in the Consolidated Statements of Income
(3) Included in equity method investments income in the Consolidated Statements of Income
(4) Included in occupancy and depreciation in the Consolidated Statements of Income
(5) Included in compensation and employee benefits in the Consolidated Statements of Income
(6) Included in changes in fair value of loans held-for-sale in the Consolidated Statements of Income

¹ Definitions are presented under “Non-GAAP Financial Measures”. Reconciliations of non-GAAP financial measures to the most comparable GAAP measure are set forth on the last page of the financial information accompanying this press release and may also be found on the Company’s website, www.amalgamatedbank.com.