Amalgamated Financial Corp. (AMAL) Q2 2025 Earnings Call Transcript
Core Earnings Per Share (EPS) $0.88, achieved through a flexible banking model and strong performance, competing among the best-run banks in the country.
On-Balance Sheet Deposit Growth $209 million (excluding $112 million temporary deposits), driven by political deposits increasing by $137 million (13%) to $1.2 billion and not-for-profit segment deposits growing by over $100 million.
Loan Growth $60 million (2%), primarily in multifamily, CRE, and C&I portfolios, despite higher early payoffs and paydowns. Consumer solar and residential real estate loans declined as they are being deemphasized.
Loan Portfolio Growth (2021-2025) Increased from $3.1 billion to $4.7 billion (10% compound annual growth rate). PACE portfolio grew at 22% compound annual growth rate to $1.2 billion.
Net Income $26 million or $0.84 per diluted share. Core net income was $27 million or $0.88 per diluted share.
Net Interest Income (NII) Grew by 3.3% to $72.9 million, with a net interest margin of 3.55%. Growth was driven by balance sheet expansion of 2.8% to $8.45 billion.
Tangible Book Value Per Share Increased by $0.82 (3.5%) to $24.33, growing 18% over the past 4 quarters.
Core Return on Average Equity 14.61%, a decline from 15.23% in the prior quarter due to organic capital build.
Core Return on Average Assets 1.28%, a decline due to planned larger balance sheet size.
CET1 Ratio 14.13%, a modest decrease of 15 basis points, reflecting strong balance sheet and conservative risk allocation.
Share Repurchases 327,000 shares repurchased for $9.7 million, the largest in the bank's history, with $30 million authorized availability remaining.
On-Balance Sheet Deposits Increased by $321 million (4.3%) to $7.7 billion, excluding temporary deposits, the increase was $208.9 million (2.8%).
Loan Portfolio Composition Growth in multifamily loans ($34.2 million), C&I loans ($13.5 million), and CRE loans ($13.1 million). Declines in consumer loans ($11 million) and residential loans ($11.8 million).
Allowance for Credit Losses Increased by $1.3 million to $59 million, with a ratio of 1.25% of total loans, reflecting macroeconomic forecasts and specific loan reserves.
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Amalgamated Financial Corp. (AMAL) Reports Q4 2025 Core Earnings of $0.99
- Core Earnings Growth: Amalgamated Financial Corp. reported core earnings of $0.99 per diluted share for Q4 2025, demonstrating the consistency of its earnings power and setting a solid foundation for future shareholder returns.
- Record Deposit Growth: The bank attracted nearly $1 billion in new deposits, with political deposits rising to $1.7 billion, surpassing previous records and indicating strong customer acquisition even in a non-election year, enhancing its competitive position.
- Loan Portfolio Expansion: Total loans increased to $4.9 billion, up 3.5%, with growth-mode portfolios like multifamily and commercial real estate rising by 7%, showcasing the bank's robust performance and diversification strategy in the lending market.
- Optimistic Future Outlook: The bank anticipates net interest income growth of 10% to 11% in 2026, aiming to cross $10 billion in assets, with management expressing confidence in sustaining growth and adaptability in evolving market conditions.
Amalgamated Bank Q4 Non-GAAP EPS Beats by $0.08
- Earnings Performance: Amalgamated Bank reported a Q4 Non-GAAP EPS of $0.99, exceeding expectations by $0.08, indicating sustained profitability that may boost investor confidence.
- Revenue Growth: The bank's revenue of $85.2 million in Q4, up 9.4% year-over-year, fell short of market expectations by $0.17 million, reflecting challenges in the changing economic environment that could impact future growth outlook.
- Net Interest Margin Expansion: The net interest margin expanded by 6 basis points to 3.66%, demonstrating the bank's effective asset-liability management in the current interest rate environment, potentially laying the groundwork for future interest income growth.
- Net Interest Income Increase: Net interest income rose by $1.4 million, or 1.8%, to $77.9 million, showcasing the bank's robust performance in loan and investment portfolio management, which supports overall financial health.
