Amalgamated Financial (AMAL) Q1 2025 earnings summary

Executive summary

• Q1 2025 results were in line with guidance, with core EPS of $0.88, net income of $25M ($0.81/diluted share), and net interest income of $70.6M, supported by a resilient, low-risk balance sheet and high liquidity.

• Achieved broad-based deposit growth to $7.6B, including an 11% increase in political deposits and strong not-for-profit and mission-aligned sector presence.

• Maintained robust capital and liquidity positions, with tangible book value per share up 4% to $23.51 and tangible common equity ratio at 8.73%.

• Returned over 30% of earnings to shareholders via $0.14/share dividend and $3.5M in share repurchases; new $40M buyback program authorized.

• Continued focus on digital transformation, mission-driven lending, and risk mitigation, with a new NYC headquarters lease signed for mid-2026.

Financial highlights

• Net interest margin was 3.55%, with net interest income at $70.6M, and core net income at $27.1M ($0.88/diluted share).

• Tangible book value per share increased 4% to $23.51; total assets were $8.3B and deposits $7.6B.

• Allowance for credit losses on loans decreased to $57.7M (1.23% of loans), reflecting improved macro outlook.

• Non-interest expense rose to $41.7M, mainly from higher professional fees and technology costs.

• Non-interest income was $6.4M, down year-over-year due to lower equity investment income and service charges.

Outlook and guidance

• Full-year 2025 guidance maintained: net interest income of $293M–$297M, core pre-tax pre-provision earnings of $159M–$163M, and 3% year-end balance sheet growth.

• Q2 2025 net interest margin expected to expand 2–4 bps; net interest income projected at $72M–$74M.

• C&I loan growth expected to remain muted in Q2, with acceleration in the second half; C-PACE originations targeted at $15M–$20M per quarter in H2.

• Expense ramp to $170M for the year anticipated, driven by digital transformation and deferred hiring.

• Annual core ROAA target of 1.3% and core revenue growth of 3.5%–5.0%.