Amalgamated Financial Corp. Reports Second Quarter 2025 Financial Results; Solid Deposit and Loan Growth; Strong Margin at 3.55%

Common Equity Tier 1 Capital Ratio of 14.13% | Tangible Book Value per Share of $24.33

NEW YORK, July 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 second quarter ended June 30, 2025.

Second Quarter 2025 Highlights (on a linked quarter basis)

• Net income of $26.0 million, or $0.84 per diluted share, compared to $25.0 million, or $0.81 per diluted share.
• Core net income¹ of $27.0 million, or $0.88 per diluted share, compared to $27.1 million, or $0.88 per diluted share.

Deposits and Liquidity

• On-balance sheet deposits increased $321.2 million, or 4.3%, to $7.7 billion.
• Excluding $112.3 million of temporary pension funding deposits received on the last day of the quarter and withdrawn on the following day, total deposits increased $208.9 million, or 2.8%, to $7.6 billion.
• Off-balance sheet deposits were $41.4 million at the end of the quarter.
• Political deposits increased $136.5 million, or 13%, to $1.2 billion, which includes both on and off-balance sheet deposits.
• Average cost of deposits, increased 3 basis points to 162 basis points, where non-interest-bearing deposits comprised 36% of total deposits.

Assets and Margin

• Net interest margin remained unchanged at 3.55%.
• Net interest income grew $2.3 million, or 3.3%, to $72.9 million.
• Net loans receivable increased $35.5 million, or 0.8%, to $4.7 billion.
• Net loans in growth mode (commercial and industrial, commercial real estate, and multifamily) increased $60.8 million or 2.1%.
• Total PACE assessments grew $16.3 million, or 1.4%, to $1.2 billion.
• The multifamily and commercial real estate loan portfolios totaled $1.8 billion and had a concentration of 202% to total risk based capital.

Capital and Returns

• Tier 1 leverage ratio remained constant at 9.22% and Common Equity Tier 1 ratio was 14.13%.
• Tangible common equity¹ ratio decreased 13 basis points to 8.60% due to a larger balance sheet.
• Tangible book value per share¹ increased $0.82, or 3.5%, to $24.33, and has increased $7.00, or 40.4% since September 2021.
• Core return on average tangible common equity¹ of 14.90% and core return on average assets¹ of 1.28%.

Share Repurchase

• Repurchased approximately 327,000 shares, or $9.7 million of common stock, through June 30, 2025, with $30.3 million in remaining capacity under the share repurchase program approved on March 10, 2025.
• Approximately 74,000 shares have been repurchased from July 1 through July 22, 2025.

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.

Priscilla Sims Brown, President and Chief Executive Officer, commented, “We are achieving our results because our banking model is flexible. We have many levers we can pull to drive performance and that creates reliability and predictability for our shareholders, customers, and employees.”

Second Quarter Earnings

Net income was $26.0 million, or $0.84 per diluted share, compared to $25.0 million, or $0.81 per diluted share, for the prior quarter. The $1.0 million increase during the quarter was primarily driven by a scheduled $2.6 million increase in non-core income related to solar tax equity investments, a $2.3 million increase in net interest income, and a $1.1 million decrease in non-interest expense. This was partially offset by a $4.3 million increase in provision for credit losses, the effect from a $0.8 million net valuation gain on residential loans sold during the previous quarter, and a $0.4 million increase in losses on sales of securities and other assets compared to the linked quarter.

Core net income¹ was $27.0 million, or $0.88 per diluted share, compared to $27.1 million, or $0.88 per diluted share for the prior quarter. Excluded from core net income for the quarter, pre-tax, was $1.0 million of losses on the sale of securities and other assets, $0.3 million of scheduled accelerated depreciation from solar tax equity investments, $0.1 million of severance costs, and $0.1 million of ICS One-Way Sell fee income. Excluded from core net income for the first quarter of 2025, 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.

Net interest income was $72.9 million, compared to $70.6 million for the prior quarter. Loan interest income increased $0.9 million and loan yields increased 5 basis points despite a $35.6 million decrease in average loan balances, primarily due to completion of a residential loan pool sale in the prior quarter. In addition, commercial loan originations were offset by paydowns and payoffs on lower-yielding commercial and residential loans. Interest income on securities increased $2.0 million driven by an increase in the average balance of securities of $141.2 million despite a slight decline in securities yields of 4 basis points. Interest expense on total interest-bearing deposits increased $1.7 million driven primarily by an increase in the average balance of total interest-bearing deposits of $201.0 million, while interest-bearing deposits cost remained flat.

Net interest margin was 3.55%, the same as the prior quarter largely due to a higher average balance of interest-bearing deposits as noted above, which resulted in a slightly higher blended cost of funds. This offset the interest income generated by the higher average balance of securities and modestly higher loan yields. Additionally, income from prepayment penalties had a one basis point impact on net interest margin in the current quarter, compared to no impact in the prior quarter.

Provision for credit losses was an expense of $4.9 million, compared to an expense of $0.6 million in the prior quarter. The increase in the second quarter was primarily driven by a $2.3 million increase in reserve for one syndicated commercial and industrial loan as well as the macroeconomic forecasts used in the CECL model, primarily related to the consumer solar loan portfolio, which can be volatile.

Non-interest income was $8.0 million, compared to $6.4 million in the prior quarter. Excluding all non-core income adjustments noted above, core non-interest income¹ was $9.3 million, compared to $9.1 million in the prior quarter. The increase was primarily related to higher commercial banking fees, partially offset by lower income from Trust fees.

Non-interest expense was $40.6 million, a decrease of $1.1 million from the prior quarter. Core non-interest expense¹ was $40.4 million, also a decrease of $1.1 million from the prior quarter. This was mainly driven by a $1.5 million decrease in professional fees, partially offset by a $0.4 million increase in advertising expense.

Provision for income tax expense was $9.5 million, compared to $9.7 million for the prior quarter. The effective tax rate was 26.7%, compared to 28.0% in the prior quarter. The California single-sales factor apportionment law was adopted during the quarter which resulted in an increase in the California state tax rate. A discrete tax benefit was recognized during the current quarter for the remeasurement of deferred tax assets reducing the quarterly effective tax rate. Going forward, the tax rate is expected to be 27.3%. The prior quarter effective tax rate was impacted by discrete tax items related to a city and state tax examination. Adjusted, the current quarter effective tax rate was 27.3% compared to 27.0% for the prior quarter.

Balance Sheet Quarterly Summary

Total assets were $8.6 billion at June 30, 2025, a $336.1 million or a 4% increase compared to $8.3 billion at March 31, 2025. On the last day of the quarter, the balance sheet was impacted by $112.3 million of temporary pension funding deposits that were withdrawn the following day. Adjusted, total assets were $8.5 billion, in line with our target for the quarter. Notable changes within individual balance sheet line items include a $177.6 million increase in securities and a $35.5 million increase in net loans receivable. On the liabilities side, on-balance sheet deposits increased by $321.2 million or $208.9 million when adjusted for the temporary deposits noted above. Off-balance sheet deposits decreased by $173.1 million in the quarter. Equity grew by $18.0 million.

Total net loans receivable at June 30, 2025 were $4.7 billion, an increase of $35.5 million, or 0.8% for the quarter. A balanced increase in loans was primarily driven by a $34.2 million increase in multifamily loans, a $13.5 million increase in commercial and industrial loans, and a $13.1 million increase in commercial real estate loans, all in our identified growth portfolios. This was partially offset by a $11.0 million decrease in consumer solar loans, and a $11.8 million decrease in residential loans, both being non-growth portfolios. During the quarter, criticized or classified loans increased $13.9 million, largely related to the downgrades of four commercial and industrial loans totaling $9.7 million, the downgrade of one multifamily loan totaling $2.8 million, additional downgrades of small business loans totaling $1.0 million, and an increase of $2.1 million in residential and consumer substandard loans. This was partially offset by charge-offs of small business loans totaling $1.1 million, and an upgrade of one $0.1 million small business loan.

Total on-balance sheet deposits at June 30, 2025 were $7.7 billion, an increase of $321.2 million, or 4.3%, 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 $1.2 billion as of June 30, 2025, an increase of $136.5 million during the quarter. Non-interest-bearing deposits represented 38% of average total deposits and 36% of ending total deposits for the quarter, contributing to an average cost of total deposits of 162 basis points. Super-core deposits¹ totaled approximately $4.2 billion, had a weighted average life of 18 years, and comprised 54% of total deposits. Total uninsured deposits were $3.9 billion, comprising 50% of total deposits.

Nonperforming assets totaled $35.2 million, or 0.41% of period-end total assets at June 30, 2025, an increase of $1.3 million, compared with $33.9 million, or 0.41% on a linked quarter basis. The increase in nonperforming assets was primarily driven by a $2.4 million increase in residential non-accrual loans, partially offset by a $0.3 million decrease in commercial and industrial nonaccrual loans, a $0.3 million decrease in consumer solar nonaccrual loans, and a $0.5 million decrease in nonaccrual loans held for sale compared to the prior quarter.

During the quarter, the allowance for credit losses on loans increased $1.3 million to $59.0 million. The ratio of allowance to total loans was 1.25%, an increase of 2 basis points from 1.23% in the first quarter of 2025. This is primarily due to an increase of $2.3 million in reserves for one commercial and industrial loan, along with increases in provision related to the macroeconomic forecasts used in the CECL model. The loan associated with the increased reserve is a commercial and industrial business loan to an originator of consumer loans for renewable energy efficiency improvements. During the quarter, $2.5 million of debtor-in-possession (“DIP”) financing was put in place, a portion of which was advanced and increased our outstanding exposure from $8.3 million to $9.3 million as of June 30, 2025. Additionally, during the third quarter, the remainder of the DIP financing was advanced bringing the total exposure to $10.8 million as of the date of this earnings release. While there remains collateral value, the situation with this loan is fluid and could result in further reserves as the workout progresses.

Capital Quarterly Summary

As of June 30, 2025, the Common Equity Tier 1 Capital ratio was 14.13%, the Total Risk-Based Capital ratio was 16.43%, and the Tier 1 Leverage Capital ratio was 9.22%, compared to 14.27%, 16.61% and 9.22%, respectively, as of March 31, 2025. Stockholders’ equity at June 30, 2025 was $754.0 million, an increase of $18.0 million during the quarter. The increase in stockholders’ equity was primarily driven by $26.0 million of net income for the quarter and a $4.3 million improvement in accumulated other comprehensive loss due to the tax-effected mark-to-market on available for sale securities, offset by $9.7 million in share buybacks and $4.4 million in dividends paid at $0.14 per outstanding share.

Tangible book value per share¹ was $24.33 as of June 30, 2025 compared to $23.51 as of March 31, 2025. Tangible common equity¹ improved to 8.60% of tangible assets, compared to 8.73% as of March 31, 2025.

Conference Call

As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its second quarter 2025 results today, July 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. Second 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 13754662. The telephonic replay will be available until July 31, 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 June 30, 2025, total assets were $8.6 billion, total net loans were $4.7 billion, and total deposits were $7.7 billion. Additionally, as of June 30, 2025, the trust business held $36.5 billion in assets under custody and $15.6 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 June 30, 2025 versus certain periods in 2025 and 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" 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												Six Months Ended
	June 30,				March 31,				June 30,				June 30,
($ in thousands)	2025				2025				2024				2025				2024
INTEREST AND DIVIDEND INCOME
Loans	$	58,723			$	57,843			$	51,293			$	116,566			$	103,245
Securities		43,737				41,653				44,978				85,390				87,368
Interest-bearing deposits in banks		1,639				1,194				2,690				2,833				5,282
Total interest and dividend income		104,099				100,690				98,961				204,789				195,895
INTEREST EXPENSE
Deposits		30,593				28,917				28,882				59,510				54,773
Borrowed funds		597				1,196				887				1,793				3,893
Total interest expense		31,190				30,113				29,769				61,303				58,666
NET INTEREST INCOME		72,909				70,577				69,192				143,486				137,229
Provision for credit losses		4,890				596				3,161				5,486				4,749
Net interest income after provision for credit losses		68,019				69,981				66,031				138,000				132,480
NON-INTEREST INCOME
Trust Department fees		3,879				4,191				3,657				8,069				7,511
Service charges on deposit accounts		3,873				3,438				8,614				7,311				14,750
Bank-owned life insurance income		796				626				615				1,422				1,224
Losses on sale of securities and other assets		(1,041	)			(680	)			(2,691	)			(1,721	)			(5,465	)
Gain (loss) on sale of loans and changes in fair value on loans held- for-sale, net		18				832				69				850				116
Equity method investments income (loss)		51				(2,508	)			(1,551	)			(2,458	)			521
Other income		449				507				545				957				830
Total non-interest income		8,025				6,406				9,258				14,430				19,487
NON-INTEREST EXPENSE
Compensation and employee benefits		23,240				23,314				23,045				46,554				45,318
Occupancy and depreciation		3,476				3,293				3,379				6,768				6,283
Professional fees		3,283				4,739				2,332				8,022				4,708
Technology		5,485				5,619				4,786				11,103				9,415
Office maintenance and depreciation		570				629				580				1,199				1,243
Amortization of intangible assets		144				144				182				287				365
Advertising and promotion		412				51				1,175				463				2,394
Federal deposit insurance premiums		900				900				1,050				1,800				2,100
Other expense		3,074				2,961				2,983				6,038				5,838
Total non-interest expense		40,584				41,650				39,512				82,234				77,664
Income before income taxes		35,460				34,737				35,777				70,196				74,303
Income tax expense		9,471				9,709				9,024				19,179				20,301
Net income	$	25,989			$	25,028			$	26,753			$	51,017			$	54,002
Earnings per common share - basic	$	0.85			$	0.82			$	0.88			$	1.67			$	1.77
Earnings per common share - diluted	$	0.84			$	0.81			$	0.87			$	1.65			$	1.75

Consolidated Statements of Financial Condition

($ in thousands)	June 30, 2025				March 31, 2025				December 31, 2024
Assets	(unaudited)				(unaudited)
Cash and due from banks	$	4,049			$	4,196			$	4,042
Interest-bearing deposits in banks		167,017				61,518				56,707
Total cash and cash equivalents		171,066				65,714				60,749
Securities:
Available for sale, at fair value
Traditional securities		1,713,077				1,546,127				1,477,047
Property Assessed Clean Energy (“PACE”) assessments		178,247				161,147				152,011
		1,891,324				1,707,274				1,629,058
Held-to-maturity, at amortized cost:
Traditional securities, net of allowance for credit losses of $47, $47, and $49, respectively		529,418				535,065				542,246
PACE assessments, net of allowance for credit losses of $657, $654, and $655, respectively		1,037,220				1,038,052				1,043,959
		1,566,638				1,573,117				1,586,205
Loans held for sale		2,545				3,667				37,593
Loans receivable, net of deferred loan origination fees and costs		4,714,344				4,677,506				4,672,924
Allowance for credit losses		(58,998	)			(57,676	)			(60,086	)
Loans receivable, net		4,655,346				4,619,830				4,612,838
Resell agreements		57,040				41,651				23,741
Federal Home Loan Bank of New York (“FHLBNY”) stock, at cost		5,277				4,679				15,693
Accrued interest receivable		55,509				55,092				61,172
Premises and equipment, net		8,823				7,366				6,386
Bank-owned life insurance		108,465				108,652				108,026
Right-of-use lease asset		11,379				12,477				14,231
Deferred tax asset, net		33,685				33,799				42,437
Goodwill		12,936				12,936				12,936
Intangible assets, net		1,200				1,343				1,487
Equity method investments		5,110				5,639				8,482
Other assets		34,995				31,991				35,858
Total assets	$	8,621,338			$	8,285,227			$	8,256,892
Liabilities
Deposits		7,733,272				7,412,072				7,180,605
Borrowings		75,457				69,676				314,409
Operating leases		15,395				17,190				19,734
Other liabilities		43,230				50,293				34,490
Total liabilities		7,867,354				7,549,231				7,549,238
Stockholders’ equity
Common stock, par value $0.01 per share		310				309				308
Additional paid-in capital		290,256				288,539				288,656
Retained earnings		522,405				500,783				480,144
Accumulated other comprehensive loss, net of income taxes		(42,982	)			(47,308	)			(58,637	)
Treasury stock, at cost		(16,005	)			(6,327	)			(2,817	)
Total stockholders' equity		753,984				735,996				707,654
Total liabilities and stockholders’ equity	$	8,621,338			$	8,285,227			$	8,256,892

Select Financial Data

	As of and for the Three Months Ended									As of and for the Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(Shares in thousands)	2025			2025			2024			2025			2024
Selected Financial Ratios and Other Data:
Earnings per share
Basic	$	0.85		$	0.82		$	0.88		$	1.67		$	1.77
Diluted		0.84			0.81			0.87			1.65			1.75
Core net income (non-GAAP)
Basic	$	0.88		$	0.88		$	0.86		$	1.77		$	1.70
Diluted		0.88			0.88			0.85			1.75			1.68
Book value per common share (excluding minority interest)	$	24.79		$	23.98		$	21.09		$	24.79		$	21.09
Tangible book value per share (non-GAAP)	$	24.33		$	23.51		$	20.61		$	24.33		$	20.61
Common shares outstanding, par value $0.01 per share(1)		30,412			30,697			30,630			30,412			30,630
Weighted average common shares outstanding, basic		30,558			30,682			30,551			30,619			30,513
Weighted average common shares outstanding, diluted		30,758			30,946			30,832			30,872			30,789
(1) 70,000,000 shares authorized; 30,983,139, 30,940,480, and 30,743,666 shares issued for the periods ended June 30, 2025, March 31, 2025, and June 30, 2024 respectively, and 30,412,241, 30,696,940, and 30,630,386 shares outstanding for the periods ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.

Select Financial Data

	As of and for the Three Months Ended									As of and for the Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2025			2025			2024			2025			2024
Selected Performance Metrics:
Return on average assets	1.23	%		1.22	%		1.30	%		1.23	%		1.33	%
Core return on average assets (non-GAAP)	1.28	%		1.33	%		1.27	%		1.30	%		1.27	%
Return on average equity	14.06	%		14.05	%		17.27	%		14.06	%		17.75	%
Core return on average tangible common equity (non-GAAP)	14.90	%		15.54	%		17.34	%		15.21	%		17.46	%
Average equity to average assets	8.78	%		8.71	%		7.53	%		8.75	%		7.48	%
Tangible common equity to tangible assets (non-GAAP)	8.60	%		8.73	%		7.66	%		8.60	%		7.66	%
Loan yield	5.05	%		5.00	%		4.68	%		5.03	%		4.72	%
Securities yield	5.11	%		5.15	%		5.22	%		5.13	%		5.21	%
Deposit cost	1.62	%		1.59	%		1.55	%		1.61	%		1.51	%
Net interest margin	3.55	%		3.55	%		3.46	%		3.55	%		3.47	%
Efficiency ratio (1)	50.14	%		54.10	%		50.37	%		52.07	%		49.56	%
Core efficiency ratio (non-GAAP)	49.21	%		52.11	%		50.80	%		50.64	%		50.60	%
Asset Quality Ratios:
Nonaccrual loans to total loans	0.74	%		0.70	%		0.78	%		0.74	%		0.78	%
Nonperforming assets to total assets	0.41	%		0.41	%		0.43	%		0.41	%		0.43	%
Allowance for credit losses on loans to nonaccrual loans	170.02	%		175.07	%		182.83	%		170.02	%		182.83	%
Allowance for credit losses on loans to total loans	1.25	%		1.23	%		1.42	%		1.25	%		1.42	%
Annualized net charge-offs to average loans	0.30	%		0.22	%		0.25	%		0.26	%		0.22	%
Liquidity Ratios:
2 day Liquidity Coverage of Uninsured Deposits %	96.73	%		93.75	%		100.83	%		96.73	%		100.83	%
Cash and Borrowing Capacity Coverage of Uninsured, Non-Supercore Deposits (%)	167.94	%		163.71	%		174.24	%		167.94	%		174.24	%
Capital Ratios:
Tier 1 leverage capital ratio	9.22	%		9.22	%		8.42	%		9.22	%		8.42	%
Tier 1 risk-based capital ratio	14.13	%		14.27	%		13.48	%		14.13	%		13.48	%
Total risk-based capital ratio	16.43	%		16.61	%		16.04	%		16.43	%		16.04	%
Common equity tier 1 capital ratio	14.13	%		14.27	%		13.48	%		14.13	%		13.48	%
(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 June 30, 2025							At March 31, 2025							At June 30, 2024
	Amount				% of total			Amount				% of total			Amount				% of total
Commercial portfolio:
Commercial and industrial	$	1,196,804			25.4	%		$	1,183,297			25.3	%		$	1,012,400			22.6	%
Multifamily		1,406,193			29.8	%			1,371,950			29.4	%			1,230,545			27.5	%
Commercial real estate		422,068			9.0	%			409,004			8.7	%			377,484			8.4	%
Construction and land development		20,330			0.4	%			20,690			0.4	%			23,254			0.5	%
Total commercial portfolio		3,045,395			64.6	%			2,984,941			63.8	%			2,643,683			59.0	%
Retail portfolio:
Residential real estate lending		1,292,013			27.4	%			1,303,856			27.9	%			1,404,624			31.4	%
Consumer solar		345,604			7.3	%			356,601			7.6	%			385,567			8.6	%
Consumer and other		31,332			0.7	%			32,108			0.7	%			37,965			1.0	%
Total retail portfolio		1,668,949			35.4	%			1,692,565			36.2	%			1,828,156			41.0	%
Total loans held for investment		4,714,344			100.0	%			4,677,506			100.0	%			4,471,839			100.0	%
Allowance for credit losses		(58,998	)						(57,676	)						(63,444	)
Loans receivable, net	$	4,655,346						$	4,619,830						$	4,408,395
PACE assessments:
Available for sale, at fair value
Residential PACE assessments		178,247			14.7	%			161,147			13.4	%			112,923			9.7	%
Held-to-maturity, at amortized cost
Commercial PACE assessments		278,006			22.9	%			271,200			22.6	%			256,663			22.0	%
Residential PACE assessments		759,871			62.4	%			767,507			64.0	%			798,561			68.4	%
Total Held-to-maturity PACE assessments		1,037,877			85.3	%			1,038,707			86.6	%			1,055,224			90.4	%
Total PACE assessments		1,216,124			100.0	%			1,199,854			100.0	%			1,168,147			100.0	%
Allowance for credit losses		(657	)						(654	)						(655	)
Total PACE assessments, net	$	1,215,467						$	1,199,200						$	1,167,492
Loans receivable, net and total PACE assessments, net as a % of Deposits		75.9	%						78.5	%						74.9	%
Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs		75.9	%						78.5	%						76.4	%

Net Interest Income Analysis

	Three Months Ended
	June 30, 2025									March 31, 2025									June 30, 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	$	161,965		$	1,639		4.06	%		$	121,321		$	1,194		3.99	%		$	213,725		$	2,690		5.06	%
Securities(1)		3,361,812			42,850		5.11	%			3,220,590			40,867		5.15	%			3,308,881			42,937		5.22	%
Resell agreements		52,621			887		6.76	%			30,169			786		10.57	%			122,618			2,041		6.69	%
Loans receivable, net (2)		4,659,667			58,723		5.05	%			4,695,264			57,843		5.00	%			4,406,843			51,293		4.68	%
Total interest-earning assets		8,236,065			104,099		5.07	%			8,067,344			100,690		5.06	%			8,052,067			98,961		4.94	%
Non-interest-earning assets:
Cash and due from banks		5,622									5,045									6,371
Other assets		203,992									220,589									217,578
Total assets	$	8,445,679								$	8,292,978								$	8,276,016
Interest-bearing liabilities:
Savings, NOW and money market deposits	$	4,457,620		$	28,653		2.58	%		$	4,242,786		$	26,806		2.56	%		$	3,729,858		$	24,992		2.69	%
Time deposits		218,835			1,940		3.56	%			232,683			2,111		3.68	%			210,565			1,898		3.63	%
Brokered CDs		—			—		0.00	%			—			—		0.00	%			156,086			1,992		5.13	%
Total interest-bearing deposits		4,676,455			30,593		2.62	%			4,475,469			28,917		2.62	%			4,096,509			28,882		2.84	%
Borrowings		75,741			597		3.16	%			134,340			1,196		3.61	%			104,560			887		3.41	%
Total interest-bearing liabilities		4,752,196			31,190		2.63	%			4,609,809			30,113		2.65	%			4,201,069			29,769		2.85	%
Non-interest-bearing liabilities:
Demand and transaction deposits		2,895,845									2,901,061									3,390,941
Other liabilities		56,203									59,728									60,982
Total liabilities		7,704,244									7,570,598									7,652,992
Stockholders' equity		741,435									722,380									623,024
Total liabilities and stockholders' equity	$	8,445,679								$	8,292,978								$	8,276,016
Net interest income / interest rate spread				$	72,909		2.44	%					$	70,577		2.41	%					$	69,192		2.09	%
Net interest-earning assets / net interest margin	$	3,483,869					3.55	%		$	3,457,535					3.55	%		$	3,850,998					3.46	%
Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs	$	7,572,300					1.62	%		$	7,376,530					1.59	%		$	7,331,364					1.48	%
Total deposits / total cost of deposits	$	7,572,300					1.62	%		$	7,376,530					1.59	%		$	7,487,450					1.55	%
Total funding / total cost of funds	$	7,648,041					1.64	%		$	7,510,870					1.63	%		$	7,592,010					1.58	%
(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 2Q2025, 1Q2025, or 2Q2024 of $200,076, $0, and $0, respectively (in thousands).

Net Interest Income Analysis

	Six Months Ended
	June 30, 2025									June 30, 2024
(In thousands)	Average Balance			Income / Expense			Yield / Rate			Average Balance			Income / Expense			Yield / Rate
Interest-earning assets:
Interest-bearing deposits in banks	$	141,756		$	2,833		4.03	%		$	209,547		$	5,282		5.07	%
Securities		3,291,591			83,717		5.13	%			3,239,619			84,000		5.21	%
Resell agreements		41,457			1,673		8.14	%			100,814			3,368		6.72	%
Total loans, net (1)(2)		4,677,367			116,566		5.03	%			4,398,665			103,245		4.72	%
Total interest-earning assets		8,152,171			204,789		5.07	%			7,948,645			195,895		4.96	%
Non-interest-earning assets:
Cash and due from banks		5,335									5,720
Other assets		212,245									221,924
Total assets	$	8,369,751								$	8,176,289
Interest-bearing liabilities:
Savings, NOW and money market deposits	$	4,350,797		$	55,459		2.57	%		$	3,660,704		$	46,864		2.57	%
Time deposits		225,721			4,051		3.62	%			199,305			3,474		3.51	%
Brokered CDs		—			—		0.00	%			173,163			4,435		5.15	%
Total interest-bearing deposits		4,576,518			59,510		2.62	%			4,033,172			54,773		2.73	%
Borrowings		104,879			1,793		3.45	%			196,326			3,893		3.99	%
Total interest-bearing liabilities		4,681,397			61,303		2.64	%			4,229,498			58,666		2.79	%
Non-interest-bearing liabilities:
Demand and transaction deposits		2,898,439									3,264,590
Other liabilities		57,955									70,309
Total liabilities		7,637,791									7,564,397
Stockholders' equity		731,960									611,892
Total liabilities and stockholders' equity	$	8,369,751								$	8,176,289
Net interest income / interest rate spread				$	143,486		2.43	%					$	137,229		2.17	%
Net interest-earning assets / net interest margin	$	3,470,774					3.55	%		$	3,719,147					3.47	%
Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs	$	7,474,957					1.61	%		$	7,124,599					1.42	%
Total deposits / total cost of deposits	$	7,474,957					1.61	%		$	7,297,762					1.51	%
Total funding / total cost of funds	$	7,579,836					1.63	%		$	7,494,088					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 June YTD 2025 and June YTD 2024 of $200 thousand and $18 thousand, respectively.

Deposit Portfolio Composition

	Three Months Ended
(In thousands)	June 30, 2025						March 31, 2025						June 30, 2024
	Ending Balance			Average Balance			Ending Balance			Average Balance			Ending Balance			Average Balance
Non-interest-bearing demand deposit accounts	$	2,810,489		$	2,895,845		$	2,895,757		$	2,901,061		$	3,445,068		$	3,390,941
NOW accounts		177,494			177,312			187,078			177,827			192,452			191,253
Money market deposit accounts		4,216,318			3,950,346			3,772,423			3,739,548			3,093,644			3,202,365
Savings accounts		330,892			329,962			330,410			325,411			336,943			336,240
Time deposits		198,079			218,835			226,404			232,683			227,437			210,565
Brokered certificates of deposit (“CDs”)		—			—			—			—			153,444			156,086
Total deposits	$	7,733,272		$	7,572,300		$	7,412,072		$	7,376,530		$	7,448,988		$	7,487,450
Total deposits excluding Brokered CDs	$	7,733,272		$	7,572,300		$	7,412,072		$	7,376,530		$	7,295,544		$	7,331,364

	Three Months Ended
	June 30, 2025						March 31, 2025						June 30, 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	0.68	%		0.72	%		0.72	%		0.70	%		1.07	%		1.07	%
Money market deposit accounts	2.70	%		2.77	%		2.73	%		2.76	%		3.08	%		2.93	%
Savings accounts	1.32	%		1.30	%		1.28	%		1.28	%		1.67	%		1.37	%
Time deposits	3.22	%		3.56	%		3.52	%		3.68	%		3.50	%		3.63	%
Brokered CDs	—	%		—	%		—	%		—	%		4.98	%		5.13	%
Total deposits	1.63	%		1.62	%		1.57	%		1.59	%		1.59	%		1.55	%
Interest-bearing deposits excluding Brokered CDs	2.56	%		2.62	%		2.58	%		2.62	%		2.88	%		2.74	%
(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)	June 30, 2025			March 31, 2025			June 30, 2024
Loans 90 days past due and accruing	$	—		$	—		$	—
Nonaccrual loans held for sale		459			989			989
Nonaccrual loans - Commercial		27,501			27,872			23,778
Nonaccrual loans - Retail		7,199			5,072			10,924
Nonaccrual securities		6			7			29
Total nonperforming assets	$	35,165		$	33,940		$	35,720
Nonaccrual loans:
Commercial and industrial	$	12,501		$	12,786		$	8,428
Commercial real estate		3,893			3,979			4,231
Construction and land development		11,107			11,107			11,119
Total commercial portfolio		27,501			27,872			23,778
Residential real estate lending		3,805			1,375			7,756
Consumer solar		3,193			3,479			2,794
Consumer and other		201			218			374
Total retail portfolio		7,199			5,072			10,924
Total nonaccrual loans	$	34,700		$	32,944		$	34,702

Credit Quality

	June 30, 2025			March 31, 2025			June 30, 2024
($ in thousands)
Criticized and classified loans
Commercial and industrial	$	64,305		$	55,157		$	53,940
Multifamily		11,324			8,540			10,242
Commercial real estate		3,893			3,979			8,311
Construction and land development		11,107			11,107			11,119
Residential real estate lending		3,805			1,375			7,756
Consumer solar		3,193			3,479			2,794
Consumer and other		201			218			374
Total loans	$	97,828		$	83,855		$	94,536

Criticized and classified loans to total loans
Commercial and industrial	1.36	%		1.18	%		1.21	%
Multifamily	0.24	%		0.18	%		0.23	%
Commercial real estate	0.08	%		0.09	%		0.19	%
Construction and land development	0.24	%		0.24	%		0.25	%
Residential real estate lending	0.08	%		0.03	%		0.17	%
Consumer solar	0.07	%		0.07	%		0.06	%
Consumer and other	—	%		—	%		0.01	%
Total loans	2.07	%		1.79	%		2.12	%

	June 30, 2025						March 31, 2025						June 30, 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	0.32	%		1.42	%		0.28	%		1.29	%		0.32	%		1.44	%
Multifamily	—	%		0.20	%		—	%		0.23	%		—	%		0.38	%
Commercial real estate	—	%		0.49	%		—	%		0.39	%		—	%		0.40	%
Construction and land development	—	%		6.33	%		—	%		6.05	%		—	%		3.60	%
Residential real estate lending	(0.01	)%		0.69	%		—	%		0.73	%		(0.18	)%		0.88	%
Consumer solar	2.91	%		7.26	%		1.90	%		7.01	%		2.57	%		7.00	%
Consumer and other	0.07	%		5.74	%		0.70	%		5.67	%		0.01	%		6.49	%
Total loans	0.30	%		1.25	%		0.22	%		1.23	%		0.25	%		1.42	%

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												As of and for the Six Months Ended
(in thousands)	June 30, 2025				March 31, 2025				June 30, 2024				June 30, 2025				June 30, 2024
Core operating revenue
Net Interest Income (GAAP)	$	72,909			$	70,577			$	69,192			$	143,486			$	137,229
Non-interest income (GAAP)		8,025				6,406				9,258				14,430				19,487
Add: Loss on Sale of Securities and Other Assets		1,041				680				2,691				1,721				5,465
Less: ICS One-Way Sell Fee Income(1)		(102	)			(9	)			(4,859	)			(111	)			(7,762	)
Less: Changes in fair value of loans held-for-sale(6)		—				(837	)			—				(837	)			—
Less: Subdebt repurchase gain(2)		—				—				(406	)			—				(406	)
Add: Tax (credits) depreciation on solar investments(3)		310				2,868				1,815				3,179				7
Core operating revenue (non-GAAP)	$	82,183			$	79,685			$	77,691				161,868				154,020
Core non-interest expense
Non-interest expense (GAAP)	$	40,584			$	41,650			$	39,512			$	82,234			$	77,664
Add: Gain on settlement of lease termination(4)		—				—				—				—				499
Less: Severance costs(5)		(142	)			(125	)			(44	)			(267	)			(228	)
Core non-interest expense (non-GAAP)	$	40,442			$	41,525			$	39,468				81,967				77,935
Core net income
Net Income (GAAP)	$	25,989			$	25,028			$	26,753			$	51,017			$	54,002
Add: Loss on Sale of Securities and Other Assets		1,041				680				2,691				1,721				5,465
Less: ICS One-Way Sell Fee Income(1)		(102	)			(9	)			(4,859	)			(111	)			(7,762	)
Less: Changes in fair value of loans held-for-sale(6)		—				(837	)			—				(837	)			—
Less: Gain on settlement of lease termination(4)		—				—				—				—				(499	)
Less: Subdebt repurchase gain(2)		—				—				(406	)			—				(406	)
Add: Severance costs(5)		142				125				44				267				228
Add: Tax (credits) depreciation on solar investments(3)		310				2,868				1,815				3,179				7
Less: Tax on notable items		(371	)			(731	)			180				(1,109	)			775
Core net income (non-GAAP)	$	27,009			$	27,124			$	26,218				54,127				51,810
Tangible common equity
Stockholders' equity (GAAP)	$	753,984			$	735,996			$	646,112			$	753,984			$	646,112
Less: Minority interest		—				—				(133	)			—				(133	)
Less: Goodwill		(12,936	)			(12,936	)			(12,936	)			(12,936	)			(12,936	)
Less: Core deposit intangible		(1,200	)			(1,343	)			(1,852	)			(1,200	)			(1,852	)
Tangible common equity (non-GAAP)	$	739,848			$	721,717			$	631,191				739,848				631,191
Average tangible common equity
Average stockholders' equity (GAAP)	$	741,435			$	722,380			$	623,024			$	731,960			$	611,892
Less: Minority interest		—				—				(133	)			—				(133	)
Less: Goodwill		(12,936	)			(12,936	)			(12,936	)			(12,936	)			(12,936	)
Less: Core deposit intangible		(1,270	)			(1,413	)			(1,941	)			(1,341	)			(2,032	)
Average tangible common equity (non-GAAP)	$	727,229			$	708,031			$	608,014				717,683				596,791
(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.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.