AMAL — Amalgamated Financial Corp.

Summary of Amalgamated Financial Corporation Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Core Earnings: $0.99 per diluted share, consistent with previous quarters.
• Net Income: $26.6 million ($0.88 per diluted share) with core net income at $30 million.
• Net Interest Income: Grew 1% to $77.9 million; net interest margin increased 6 basis points to 3.66%.
• Deposits: On-balance sheet deposits rose by $179 million to $7.9 billion; off-balance sheet deposits increased by $789 million to $1.1 billion.
• Loan Growth: Increased by $167 million (3.5%) to $4.9 billion; multifamily, commercial real estate (CRE), and commercial & industrial (C&I) loans saw significant growth.
• Tangible Book Value: Rose by $0.87 (3.4%).
• Capital Returns: $8.7 million in share buybacks and a quarterly dividend of $0.14, increased to $0.17.

2. Strategic Updates and Business Highlights:

• Record Deposit Gathering: Nearly $1 billion in new deposits, surpassing previous records.
• Growth in Political Deposits: Increased by $287 million to $1.7 billion, with expectations for continued growth leading up to the midterm elections.
• Loan Portfolio Expansion: Strong growth in multifamily and C&I loans, with a focus on geographic diversification beyond New York City.
• Tax Strategy Update: Implemented a new approach to tax credits, simplifying financial disclosures.

3. Forward Guidance and Outlook:

• 2026 Guidance:
  • Net interest income projected at $327 million to $331 million (10-11% growth).
  • Core pretax pre-provision earnings expected to grow 9-10%.
  • Core return on average assets targeted at 1.35% and return on tangible common equity at 15%.
  • Anticipated quarterly net loan growth of 1.5% to 2%.
  • Operating expenses expected to grow to $188 million, with a focus on technology investment.

4. Bad News, Challenges, or Points of Concern:

• Credit Quality Issues: Elevated charge-off ratio due to specific multifamily loans and increased reserves related to a stressed borrower in the DC market.
• Non-accrual Loans: Increased by $7.5 million, raising concerns about asset quality.
• Economic Environment: Ongoing challenges from inflation, interest rate hikes, and overall market volatility impacting credit demand and risk.

5. Notable Q&A Insights:

• Provision Outlook: Expected to remain stable, with a conservative approach to provisioning amid ongoing credit challenges.
• Political Deposits: Anticipated growth leading up to the election, with historical trends suggesting potential for exceeding current levels.
• Multifamily Loan Growth: Strong performance noted outside of New York City, contributing to geographic diversification.
• NIM Expansion: Continued potential for margin improvement driven by loan repricing and favorable deposit dynamics.

Overall, Amalgamated Bank reported a solid quarter with strong deposit and loan growth, while also navigating challenges related to credit quality. The outlook for 2026 remains optimistic, focusing on disciplined growth and strategic investments.