Amalgamated Financial Corp. Q3 FY2025 earnings call

• Core earnings per share in Q3 was $0.91, year-to-date core earnings per share $2.66 (3% growth). • Nonperforming assets decreased $12.2 million (34.6%) to $23 million, credit quality improved nearly $19 million to $79.2 million. • Loans grew $99 million across multifamily, CRE, and C&I (3.3% growth), with PACE portfolio assessments up $27.4 million (over 8% growth in C-PACE). • Deposit franchise saw over $415 million of new deposit generation with all segments growing. • Digital modernization program went live in Q3, providing benefits. • Resolved a problem C&I loan, absorbing the impact within core earnings.

The deposit franchise saw over $415 million of new deposit generation with all segments growing during the quarter. Loans grew by $99 million across multifamily, CRE, and C&I, a 3.3% growth, with PACE portfolio assessments increasing $27.4 million, including over 8% growth in C-PACE. Nonperforming assets decreased $12.2 million (34.6%) to $23 million, and credit quality improved nearly $19 million to $79.2 million.

• Raised full year 2025 core pretax pre-provision earnings guidance to $164 million to $165 million. • Tightened 2025 net interest income guidance to $295 million to $296 million. • Fourth quarter 2025 targets: average balance sheet size ~$8.65 billion, net interest income $75 million to $76 million, net interest margin near flat as loan yields drop due to expected rate cuts (50 basis points in Q4).

• Credit cycle still in process, awareness of reserves and charge-offs by other banks. • Potential impact of changes in New York rent-regulated multifamily market. • Uncertainty around federal funding for green energy projects affecting related loans.

Q: Mark Fitzgibbon asked about specific reserves, the rent-regulated multifamily market, green energy funding, and debanking concerns.

A: Jason Darby and Priscilla Sims Brown responded.

Q: KBW analyst asked about expenses and loan yields/originations.

A: Jason Darby responded.