Amalgamated Financial Q2 2025 slides: Core income rises 0.4%, deposits up 2.8%

Amalgamated Financial Corp. (NASDAQ:AMAL) reported steady growth in its second quarter 2025 earnings presentation released on July 24, with core net income reaching $27.0 million and deposit growth of $208.9 million. The mission-driven bank continues to maintain strong capital ratios while expanding its focus on sustainability and social impact initiatives.

Introduction & Market Context

Amalgamated Financial shares have shown positive momentum, trading at $33.22, up 1.25% following the earnings release. The stock has recovered significantly from its 52-week low of $25.03 but remains below its high of $38.19. The Q2 results demonstrate consistent performance following the company’s Q1 earnings beat when it reported $0.88 EPS against a forecast of $0.79.

As shown in the following chart of quarterly performance highlights, the bank reported a 0.4% increase in core net income and a 3.3% increase in net interest income:

Quarterly Performance Highlights

Amalgamated Financial reported core earnings per share of $0.88 for Q2 2025, maintaining the same level as Q1. Net interest income grew to $72.9 million, representing a 3.3% increase, while the net interest margin held steady at 3.55%. The bank’s leverage ratio of 9.22% continues to demonstrate strong capital adequacy.

The company’s tangible book value increased by 3.5%, driven by $26.0 million in net income and a $4.3 million improvement in tax-effected mark-to-market adjustments. This was partially offset by $9.7 million in share repurchase activity and $4.4 million in dividend issuance, resulting in a dividend payout ratio of 16.8%.

The performance tracking chart below illustrates the bank’s consistent financial metrics over the past year:

Deposit and Loan Portfolio Analysis

Deposit growth was a highlight of the quarter, with total deposits increasing by $208.9 million or 2.8%. The bank’s deposit strategy continues to focus on mission-aligned customers, with a particular emphasis on what it calls "super-core deposits" – accounts that have been with the bank for at least five years.

These super-core deposits make up $4.2 billion or 55% of total core deposits and have a weighted average account duration of 18 years, compared to just 2 years for other core deposits. This provides Amalgamated with a stable funding base, with total available liquidity of $3.8 billion representing 112% of non-super-core deposits.

The following chart illustrates the bank’s deposit portfolio composition and trends:

Political deposits, which have historically followed election cycles, continue to be a significant component of Amalgamated’s deposit base. The presentation highlights patterns of deposit increases before elections and decreases immediately after, positioning the bank well for the upcoming election season.

On the lending side, Amalgamated continues to emphasize its mission-aligned loan portfolio, which focuses on sustainability, affordable housing, and social impact. The loan portfolio breakdown shows a balanced approach across residential, commercial real estate, and commercial & industrial segments:

Credit Quality and Risk Management

Credit quality remains strong, with 98% of the loan portfolio rated as "pass." Non-performing assets to total assets ratio stood at 0.60%, while net charge-offs were 0.30% on an annualized basis. The bank noted specific charge-offs in commercial/industrial and consumer solar loans but maintained overall strong credit metrics.

The following chart details the bank’s credit quality metrics:

The allowance for credit losses on loans showed thoughtful risk management, with specific reserves and quantitative adjustments reflecting the bank’s prudent approach to potential credit risks. The bank’s real estate portfolio maintains healthy loan-to-value ratios and debt service coverage ratios across its multifamily and commercial real estate segments.

Strategic Initiatives and Forward Guidance

Amalgamated Financial reaffirmed its 2025 guidance, projecting net interest income of $293-297 million and core pre-tax pre-provision earnings of $159-163 million. Year-end balance sheet growth is targeted at approximately 3%, with core revenue growth expected between 3.5% and 5.0%.

The bank continues to focus on its solar tax equity investments, noting that steady-state income is generally achieved within 4-6 quarters of initial investment. These investments align with the bank’s sustainability mission while providing profitable returns over their typical 5-year life.

As shown in the guidance slide below, the bank maintains a disciplined approach to efficiency and profitability:

CEO Priscilla Sims Brown had emphasized in the Q1 earnings call that "Our growth is really in core businesses that have a lot of tailwinds when you think about market forces around them," a strategy that appears to be continuing in Q2.

Investment Securities Portfolio

The bank’s investment securities portfolio showed stability, with a balanced mix of agency, non-agency, and PACE securities. The portfolio’s yield remained strong, providing a solid contribution to the bank’s interest income.

The investment securities composition is illustrated in the following chart:

Amalgamated’s focus on mission-aligned banking extends to its securities portfolio, with significant investments in climate protection and sustainable commerce. This approach aligns with the bank’s overall strategy of combining financial performance with positive social and environmental impact.

In conclusion, Amalgamated Financial’s Q2 2025 presentation demonstrates steady growth and consistent performance, with particular strength in deposit gathering and maintenance of strong credit quality. The bank’s unique focus on mission-aligned banking and its significant political deposit base position it well for continued growth, particularly as the election cycle progresses.

Full presentation:

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