Amalgamated Financial Corp.
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
AMAL$49.56+0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0001823608-25-000049
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001823608-25-000076
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 150 previous paragraphs and 160 current paragraphs.
94 unchanged; 49 reworded; 9 added; 6 removed; 1 previous and 8 current paragraphs rearranged.
Tables are not compared: 18 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
On July 4, 2025, President Trump signed into law the legislation formally titled “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” and commonly referred to as the One Big Beautiful Bill (the "Act”). The Company is currently evaluating income tax implications of the Act. The Company does not expect the Act to have a material impact on the Company’s financial statements.
Current report
Accounting Standards not yet adopted
Current report
ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures
Current report
On December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to enhance the transparency of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. Specifically, the amendments in this ASU require disclosure of: (i) a tabular reconciliation, using both percentages and reporting currency amounts, with prescribed categories that are required to be disclosed, and the separate disclosure and disaggregation of prescribed reconciling items with an effect equal to 5% or more of the amount determined by multiplying pretax income from continuing operations by the applicable statutory rate; (ii) a qualitative description of the states and local jurisdictions that make up the majority (greater than 50%) of the effect of the state and local income taxes; and (iii) amount of income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and by individual jurisdictions that comprise 5% or more of total income taxes paid, net of refunds received. The ASU also includes other amendments to improve the effectiveness of income tax disclosures. The Company has not adopted the standard yet.
Current report
Net income for the six months ended June 30, 2025 was$51.0 million, or $1.65 per diluted share, compared to$54.0 million, or $1.75 per diluted share, for the six months ended June 30, 2024. The$3.0 million decrease was primarily due to a$5.1 million decrease in non-interest income, a$4.5 million increase in non-interest expense, a$2.6 million increase in interest expense, and a$0.8 million increase in provision for credit losses, offset by a$8.9 million increase in interest and dividend income, and a$1.1 million decrease in income tax expense.
Current report
Net interest income was$143.5 million for the six months ended June 30, 2025, compared to$137.2 million for the same period in 2024. The$6.3 million increase, or 5.4% increase was primarily attributable to higher yields and average balances on interest-earning assets, partially offset by higher average balances on interest-bearing liabilities.
Current report
Provision for credit losses totaled an expense of $4.9 million for the second quarter of 2025 compared to an expense of $3.2 million for the same period in 2024. Overall, the provision for credit losses during the second quarter of 2025 was primarily driven by a $2.3 million increase in reserve for one syndicated commercial and industrial loan as well as the macroeconomic forecasts used in the Current Expected Credit Losses ("CECL") model, primarily related to the consumer solar loan portfolio, which can be volatile.
Current report
Non-interest expense for the six months ended June 30, 2025 was $82.2 million, an increase of $4.5 million from $77.7 million for the six months ended June 30, 2024. The increase was driven by a $3.3 million increase in professional fees, a $1.7 million increase in technology expense, a $1.2 million increase in compensation and benefits expense, and a $0.5 million increase in occupancy, partially offset by a $1.9 million decrease in advertising and promotion expense, a $0.3 million decrease in federal deposit insurance premiums expense, and a $0.1 million decrease in amortization of intangible assets.
Current report
We had a provision for income tax expense of$19.2 million for the six months ended June 30, 2025, compared to$20.3 million for the same period in of 2024. Our effective tax rate for the six months ended June 30, 2025 was 27.3% compared to 27.3% for the same period in 2024.
Removed paragraphs (6)
Previous report
Accounting Standards Effective in 2024 and onward
Previous report
ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323) - Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method
Previous report
On March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which is intended to expand the use of the proportional amortization method of accounting, previously allowed only for investments in low-income housing tax credit structures, to equity investments in other tax credit structures that meet certain criteria. The proportional amortization method results in the tax credit investment being amortized in proportion to the allocation of tax credits and other tax benefits in each period, and net presentation within the income tax line item. This expansion to other investments simplifies the accounting for reporting entities and can provide users with a better understanding of these investments. The Company adopted the standard for the year ended December 31, 2024. The adoption did not impact the existing equity investments in tax structures.
Previous report
ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures
Previous report
On November 27, 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. A public entity should apply the amendments retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. This ASU is effective for the year ended December 31, 2024 and for interim reporting periods beginning with the quarter ended March 31, 2025. Early adoption is permitted. The Company does not expect an impact of this standard on the consolidated financial statements and related disclosures.
Previous report
Net Interest Income
Reworded paragraphs (49)
Previous wording
The following is a discussion of our consolidated financial condition as of March 31, 2025, as compared to December 31, 2024, and our results of operations for the three month periods ended March 31, 2025 and March 31, 2024. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition. This discussion and analysis is best read in conjunction with our unaudited consolidated financial statements and related notes as well as the financial and statistical data appearing elsewhere in this report and our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”), filed with the Securities and Exchange Commission on March 6, 2025. Historical results of operations and the percentage relationships among any amounts included, and any trends that may appear, may not indicate results of operations for any future periods.
Current wording
The following is a discussion of our consolidated financial condition as of June 30, 2025, as compared to December 31, 2024, and our results of operations for the three and six month periods ended June 30, 2025 and June 30, 2024. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition. This discussion and analysis is best read in conjunction with our unaudited consolidated financial statements and related notes as well as the financial and statistical data appearing elsewhere in this report and our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”), filed with the Securities and Exchange Commission on March 6, 2025. Historical results of operations and the percentage relationships among any amounts included, and any trends that may appear, may not indicate results of operations for any future periods.
Previous wording
The Company was formed on August 25, 2020 to serve as the holding company for the Bank, effective March 1, 2021 when the Company acquired the common stock of the Bank. The Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Although we are no longer majority union-owned, The Amalgamated Clothing Workers of America’s successor, Workers United, an affiliate of the Service Employees International Union that represents workers in the textile, distribution, food service and gaming industries, remains a significant stockholder, holding approximately 37% of our equity as of March 31, 2025. As of March 31, 2025, our total assets were $8.29 billion, our total loans, net of allowance for credit losses were $4.62 billion, our total deposits were $7.41 billion, and our stockholders' equity was $736.0 million. As of March 31, 2025, our trust business held $35.71 billion in assets under custody and $14.23 billion in assets under management.
Current wording
The Company was formed on August 25, 2020 to serve as the holding company for the Bank, effective March 1, 2021 when the Company acquired the common stock of the Bank. The Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Although we are no longer majority union-owned, The Amalgamated Clothing Workers of America’s successor, Workers United, an affiliate of the Service Employees International Union that represents workers in the textile, distribution, food service and gaming industries, remains a significant stockholder, holding approximately 38% of our equity as of June 30, 2025. As of June 30, 2025, our total assets were $8.62 billion, our total loans, net of allowance for credit losses were $4.66 billion, our total deposits were $7.73 billion, and our stockholders' equity was $754.0 million. As of June 30, 2025, our trust business held $36.50 billion in assets under custody and $15.63 billion in assets under management.
Previous wording
For segments that rely on a peer group to develop baseline loss rates, statistical regression is utilized to relate historical macro-economic variables to historical credit loss experience of a peer group of banks. These models are then utilized to forecast future expected credit losses based on expected future behavior of the same macro-economic variables. Adjustments to the quantitative results are made using qualitative factors. These factors include: (1) borrowers' financial condition; (2) borrowers' ability to pay;
Current wording
For segments that rely on a peer group to develop baseline loss rates, statistical regression is utilized to relate historical macro-economic variables to historical credit loss experience of a peer group of banks. These models are then utilized to forecast future expected credit losses based on expected future behavior of the same macro-economic variables. Adjustments to the quantitative results are made using qualitative factors. These factors include: (1) borrowers' financial condition; (2) borrowers' ability to pay; (3) nature and volume of financial assets; (4) value of the underlying collateral; (5) lending policies and procedures; (6) quality of the loan review system; (7) the experience, ability, and depth of staff; (8) regulatory and legal environment; (9) changes in market conditions; and (10) changes in economic conditions.
Previous wording
Our results of operations depend substantially on net interest income, which is the difference between interest income on interest-earning assets, consisting primarily of interest income on loans, investment securities and other short-term investments and interest expense on interest-bearing liabilities, consisting primarily of interest expense for deposits and borrowings. Our results of operations are also dependent on non-interest income, consisting primarily of income from Trust Department fees, service charges on deposit accounts, net gains on sales of investment securities and income from bank-owned life insurance (“BOLI”). Other factors contributing to our results of operations include our provisions for credit losses, income taxes, and non-interest expenses, such as salaries and employee benefits, occupancy and depreciation expenses, professional fees, technology fees and other miscellaneous operating costs.
Current wording
Our results of operations depend substantially on net interest income, which is the difference between interest income on interest-earning assets, consisting primarily of interest income on loans, investment securities and other short-term investments and interest expense on interest-bearing liabilities, consisting primarily of interest expense for deposits and borrowings. Our results of operations are also dependent on non-interest income, consisting primarily of income from Trust Department fees, service charges on deposit accounts, net gains or losses on sales of investment securities and income from bank-owned life insurance (“BOLI”). Other factors contributing to our results of operations include our provisions for credit losses, income taxes, and non-interest expenses, such as salaries and employee benefits, occupancy and depreciation expenses, professional fees, technology fees and other miscellaneous operating costs.
Previous wording
Net income for the first quarter of 2025 was$25.0 million, or $0.81 per diluted share, compared to$27.2 million, or $0.89 per diluted share, for the first quarter of 2024. The$2.2 million decrease was primarily due to a$3.8 million decrease in non-interest income, a $3.5 million increase in non-interest expense, and a$1.2 million increase in interest expense, offset by a$3.8 million increase in interest and dividend income, a$1.6 million decrease in income tax expense, and a$1.0 million decrease in provision for credit losses.
Current wording
Net income for the second quarter of 2025 was$26.0 million, or $0.84 per diluted share, compared to$26.8 million, or $0.87 per diluted share, for the second quarter of 2024. The$0.8 million decrease was primarily due to a$1.7 million increase in provision for credit losses,$1.4 million increase in interest expense,$1.2 million decrease in non-interest income, a $1.1 million increase in non-interest expense, and a$0.4 million increase in income tax expense, offset by a$5.1 million increase in interest and dividend income.
Previous wording
(2)Includes prepayment penalty income in 1Q2025 and 1Q2024 of $0 and $18 thousand, respectively.
Current wording
(2)Includes prepayment penalty income in 2Q2025 and 2Q2024 of $200 and $0 thousand, respectively.
Previous wording
Net interest income was$70.6 million for the first quarter of 2025, compared to$68.0 million for the first quarter of 2024. The$2.6 million increase, or 3.8% increase from the first quarter of 2024 was primarily attributable to higher yields and average balances on interest-earning assets, partially offset by higher costs and average balances on interest-bearing liabilities.
Current wording
Net interest income was$72.9 million for the second quarter of 2025, compared to$69.2 million for the second quarter of 2024. The$3.7 million increase, or 5.4% increase from the second quarter of 2024 was primarily attributable to higher yields and average balances on interest-earning assets, and lower costs on interest bearing liabilities, partially offset by higher average balances on interest-bearing liabilities.
Previous wording
Net interest spread was 2.41% for the three months ended March 31, 2025, compared to 2.24% for the same period in 2024, an increase of 17 basis points. Our net interest margin was 3.55% for the first quarter of 2025, an increase of 6 basis points from 3.49% in the first quarter of 2024. This was largely due to increases in yields and average balances on interest-bearing assets, partially offset by an increase in total cost of funds.
Current wording
Net interest spread was 2.44% for the three months ended June 30, 2025, compared to 2.09% for the same period in 2024, an increase of 35 basis points. Our net interest margin was 3.55% for the second quarter of 2025, an increase of 9 basis points from 3.46% in the second quarter of 2024. This was largely due to increases in yields and average balances on interest-bearing assets, partially offset by an increase in total cost of funds.
Previous wording
The yield on average earning assets was 5.06% for the three months ended March 31, 2025, compared to 4.97% for the same period in 2024, an increase of 9 basis points. This increase was driven primarily by the current rate environment resulting in increased yields across securities and loan portfolios.
Current wording
The yield on average earning assets was 5.07% for the three months ended June 30, 2025, compared to 4.94% for the same period in 2024, an increase of 13 basis points. This increase was driven primarily by the current rate environment resulting in increased yields across securities and loan portfolios.
Previous wording
The average rate on interest-bearing liabilities was 2.65% for the three months ended March 31, 2025, a decrease of 8 basis points from the same period in 2024, which was primarily due to a decrease in interest expense paid for deposits, particularly in savings, NOW, money market deposits and time deposits. Non-interest-bearing deposits represented 39.3% of average deposits for the three months ended March 31, 2025, compared to 44.2% for the three months ended March 31, 2024.
Current wording
The average rate on interest-bearing liabilities was 2.63% for the three months ended June 30, 2025, a decrease of 22 basis points from the same period in 2024, which was primarily due to an increase in average balance of deposits, particularly in savings, NOW, money market deposits and time deposits. Non-interest-bearing deposits represented 38.2% of average deposits for the three months ended June 30, 2025, compared to 45.3% for the three months ended June 30, 2024.
Previous wording
Provision for credit losses totaled an expense of $0.6 million for the first quarter of 2025 compared to an expense of $1.6 million for the same period in 2024. Overall, the provision for credit losses during the first quarter of 2025 was primarily driven by charge offs on consumer solar and other C&I loans and increases in specific reserves, offset by improvements in the macroeconomic factors.
Current wording
Provision for credit losses totaled an expense of $5.5 million for the six months ended June 30, 2025 compared to an expense of $4.7 million for the same period in 2024. Overall, the provision for credit losses during the six months was primarily driven by increases in charge offs on consumer solar and other C&I loans and increases in specific reserves, offset by decreases in unfunded commitments.
Previous wording
Non-interest income was$6.4 million for the first quarter of 2025, compared to$10.2 million for the first quarter in 2024. The decrease of $3.8 million in thefirst quarter of 2025 compared to the corresponding quarter in 2024 was primarily due to a $4.6 million decrease in income from equity investments and a $2.7 million decrease in service charges on deposit accounts primarily due to decreases in Insured Cash Sweep ("ICS") One-Way Sell income, offset by a $2.1 million decrease in losses on sale of securities, a $0.8 million increase in gain on sale of loans and changes in fair value on loans held-for-sale, a $0.3 million increase in trust department fees and a $0.2 million increase in other income. Our Trust Department fees were $4.2 million in the first quarter of 2025, and $3.9 million in the same period in 2024.
Current wording
Non-interest income was$8.0 million for the second quarter of 2025, compared to$9.3 million for the second quarter in 2024. The decrease of $1.2 million in thesecond quarter of 2025 compared to the corresponding quarter in 2024 was primarily due to a a $4.7 million decrease in service charges on deposit accounts primarily due to decreases in Insured Cash Sweep ("ICS") One-Way Sell income, offset by a $1.7 million decrease in losses on sale of securities and other assets, a $1.6 million increase in income equity investments, and a $0.2 million increase in trust department fees. Our Trust Department fees were $3.9 million in the second quarter of 2025, and $3.7 million in the same period in 2024.
Previous wording
Non-interest expense for the first quarter of 2025 was $41.7 million, an increase of $3.5 million from $38.2 million for the first quarter of 2024. The increase was driven by a $2.4 million increase in professional fees and $1.0 million increase in compensation and benefits expense related to an expected increase in compensation due to increased headcount and corporate incentive payments, and a $1.0 million increase in technology expense, a $0.4 million increase in occupancy and depreciation expense and a $0.1 million increase in other expenses, partially offset by a $1.2 million decrease in advertising and promotion expense and a $0.2 million decrease in federal deposit insurance premiums expense.
Current wording
Non-interest expense for the second quarter of 2025 was $40.6 million, an increase of $1.1 million from $39.5 million for the second quarter of 2024. The increase was driven by a $1.0 million increase in professional fees, a $0.7 million increase in technology expense, a $0.2 million increase in compensation and benefits expense, a $0.1 million increase in occupancy and depreciation expense and a $0.1 million increase in other expenses, partially offset by a $0.8 million decrease in advertising and promotion expense and a $0.2 million decrease in federal deposit insurance premiums expense.
Previous wording
We had a provision for income tax expense of$9.7 million for the first quarter of 2025, compared to$11.3 million for the first quarter of 2024. Our effective tax rate for the first quarter of 2025 was 28.0% compared to 29.2% for the first quarter of 2024.
Current wording
We had a provision for income tax expense of$9.5 million for the second quarter of 2025, compared to$9.0 million for the second quarter of 2024. Our effective tax rate for the second quarter of 2025 was 26.7% compared to 25.2% for the second quarter of 2024.
Previous wording
Our total assets were $8.29 billion at March 31, 2025, compared to $8.26 billion at December 31, 2024. Notable changes within individual balance sheet line items include a $231.5 million increase in deposits, a $65.1 million increase in securities, a $17.9 million increase in resell agreements, a $7.0 million increase in loans receivable, net, a $5.0 million increase in cash, and a $244.7 million decrease in borrowings.
Current wording
Our total assets were $8.62 billion at June 30, 2025, compared to $8.26 billion at December 31, 2024. Notable changes within individual balance sheet line items include a $552.7 million increase in deposits, a $242.7 million increase in securities, a $110.3 million increase in cash, a $42.5 million increase in loans receivable, net, a $33.3 million increase in resell agreements, and a $239.0 million decrease in borrowings.
Previous wording
At March 31, 2025 and December 31, 2024, we had available for sale securities of $1.71 billion and $1.63 billion, respectively.
Current wording
At June 30, 2025 and December 31, 2024, we had available for sale securities of $1.89 billion and $1.63 billion, respectively.
Previous wording
During the three months ended March 31, 2025 we purchased a total of $161.8 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $16.1 million and a net realized loss of $0.7 million as part of normal and ongoing balance sheet management.
Current wording
During the six months ended June 30, 2025 we purchased a total of $508.5 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $56.1 million and a net realized loss of $1.7 million as part of normal and ongoing balance sheet management. During the six months ended June 30, 2024 we purchased a total of $568.5 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $219.2 million and a net realized loss of $5.5 million as part of routine and ongoing balance sheet management.
Previous wording
Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on held-to-maturity debt securities totaled $19.2 million at March 31, 2025 and $27.0 million at December 31, 2024, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status. The allowance for credit losses for held-to-maturity securities at March 31, 2025 was $0.7 million compared to $0.7 million at December 31, 2024. The provision for credit losses for held-to-maturity securities was a recovery of $3.0 thousand for the three months ended March 31, 2025, compared to a recovery of $11.0 thousand for the three months ended March 31, 2024.
Current wording
Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on held-to-maturity debt securities totaled $20.0 million at June 30, 2025 and $27.0 million at December 31, 2024, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status. The allowance for credit losses for held-to-maturity securities at June 30, 2025 was $0.7 million compared to $0.7 million at December 31, 2024. The provision for credit losses for held-to-maturity securities was an expense of $3.0 thousand for the three months ended June 30, 2025 and an immaterial recovery for the six months ended June 30, 2025, compared to a recovery of $2.0 thousand and $13.0 thousand for the three and six months ended June 30, 2024.
Previous wording
Accrued interest receivable on available-for-sale debt securities totaled $12.0 million at March 31, 2025 and $11.7 million at December 31, 2024, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status.
Current wording
Accrued interest receivable on available-for-sale debt securities totaled $12.6 million at June 30, 2025 and $11.7 million at December 31, 2024, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status.
Previous wording
Our securities portfolio primarily consists of high quality investments in mortgage-backed securities to government sponsored entities and other asset-backed securities and PACE assessments. All non-agency securities, composed of non-agency commercial mortgage-backed securities, collateralized loan obligations, non-agency mortgage-backed securities, and asset-backed securities, are senior tranche and approximately 82% carry AAA credit ratings and 18% carry A credit ratings or higher. Approximately 77% of this portfolio is classified as “available for sale.”
Current wording
Our securities portfolio primarily consists of high quality investments in mortgage-backed securities to government sponsored entities and other asset-backed securities and PACE assessments. All non-agency securities, composed of non-agency commercial mortgage-backed securities, collateralized loan obligations, non-agency mortgage-backed securities, and asset-backed securities, are senior tranche and approximately 80% carry AAA credit ratings and 20% carry A credit ratings or higher, with only $11 million rated below investment grade. Approximately 76% of this portfolio is classified as “available for sale.”
Previous wording
Lending related income is the most important component of our net interest income and is the main driver of our results of operations. Total loans, net of deferred origination fees and costs, and allowance for credit losses, were $4.62 billion as of March 31, 2025 compared to $4.61 billion as of December 31, 2024. Within our commercial loan portfolio, our primary focus has been on C&I, multifamily and CRE lending. We intend to focus any organic growth in our loan portfolio on these lending areas as part of our strategic plan.
Current wording
Lending related income is the most important component of our net interest income and is the main driver of our results of operations. Total loans, net of deferred origination fees and costs, and allowance for credit losses, were $4.66 billion as of June 30, 2025 compared to $4.61 billion as of December 31, 2024. Within our commercial loan portfolio, our primary focus has been on C&I, multifamily and CRE lending. We intend to focus any organic growth in our loan portfolio on these lending areas as part of our strategic plan.
Previous wording
Our commercial loan portfolio comprised 63.8% of our total loan portfolio at March 31, 2025 and 63.3% of our total loan portfolio at December 31, 2024. The major categories of our commercial loan portfolio are discussed below:
Current wording
Our commercial loan portfolio comprised 64.6% of our total loan portfolio at June 30, 2025 and 63.3% of our total loan portfolio at December 31, 2024. The major categories of our commercial loan portfolio are discussed below:
Previous wording
C&I. Our C&I loans are generally made to small and medium-sized manufacturers and wholesale, retail and service-based businesses to provide either working capital or to finance major capital expenditures. In addition, our C&I portfolio includes commercial solar financings; for many of these we are the sole lender, while for some others we are either the lead bank or are a participant in a syndicated credit facility led by another institution. The primary source of repayment for C&I loans is generally operating cash flows of the business or project. We also seek to minimize risks related to these loans by requiring such loans to be collateralized by various business assets (including inventory, equipment, accounts receivable, and the assignment of contracts that generate cash flow). The average size of our C&I loans at March 31, 2025 by exposure was $4.4 million with a median size of $1.1 million. Our lending strategy focuses on developing full customer relationships including deposits, cash management, and lending. The businesses that we focus on are generally mission aligned with our core values, including organic and natural products, sustainable companies, clean energy, nonprofits, and B Corporations TM.
Current wording
C&I. Our C&I loans are generally made to small and medium-sized manufacturers and wholesale, retail and service-based businesses to provide either working capital or to finance major capital expenditures. In addition, our C&I portfolio includes commercial solar financings; for many of these we are the sole lender, while for some others we are either the lead bank or are a participant in a syndicated credit facility led by another institution. The primary source of repayment for C&I loans is generally operating cash flows of the business or project. We also seek to minimize risks related to these loans by requiring such loans to be collateralized by various business assets (including inventory, equipment, accounts receivable, and the assignment of contracts that generate cash flow). The average size of our C&I loans at June 30, 2025 by exposure was $4.5 million with a median size of $1.1 million. Our lending strategy focuses on developing full customer relationships including deposits, cash management, and lending. The businesses that we focus on are generally mission aligned with our core values, including organic and natural products, sustainable companies, clean energy, nonprofits, and B Corporations TM.
Previous wording
Our C&I loans totaled $1.18 billion at March 31, 2025, which comprised 25.3% of our total loan portfolio. During the three months ended March 31, 2025, the C&I loan portfolio increased by 0.7% from $1.18 billion at December 31, 2024.
Current wording
Our C&I loans totaled $1.20 billion at June 30, 2025, which comprised 25.4% of our total loan portfolio. During the six months ended June 30, 2025, the C&I loan portfolio increased by 1.8% from $1.18 billion at December 31, 2024.
Previous wording
Multifamily. Our multifamily loans are generally used to purchase or refinance apartment buildings of five units or more, which collateralize the loan, in major metropolitan areas within our markets. Multifamily loans have 69% of their exposure in New York City. Our multifamily loans have been underwritten under stringent guidelines on loan-to-value and debt service coverage ratios that are designed to mitigate credit and concentration risk in this loan category. The average current LTV of our multifamily loans is approximately 54%.
Current wording
Multifamily. Our multifamily loans are generally used to purchase or refinance apartment buildings of five units or more, which collateralize the loan, in major metropolitan areas within our markets. Multifamily loans have 60% of their exposure in New York City. Our multifamily loans have been underwritten under stringent guidelines on loan-to-value and debt service coverage ratios that are designed to mitigate credit and concentration risk in this loan category. The average current LTV of our multifamily loans is approximately 54%.
Previous wording
Our multifamily loans totaled $1.37 billion at March 31, 2025, which comprised 29.4% of our total loan portfolio. During the three months ended March 31, 2025, the multifamily loan portfolio increased by 1.5% from $1.35 billion at December 31, 2024.
Current wording
Our multifamily loans totaled $1.41 billion at June 30, 2025, which comprised 29.8% of our total loan portfolio. During the six months ended June 30, 2025, the multifamily loan portfolio increased by 4.0% from $1.35 billion at December 31, 2024.
Previous wording
CRE. Our CRE loans are used to purchase or refinance office buildings, retail centers, industrial facilities, medical facilities and mixed-used buildings. Our CRE loans have been underwritten under stringent guidelines on loan-to-value and debt service coverage ratios that are designed to mitigate credit and concentration risk in this loan category. The average current LTV of our CRE loans is approximately 44%.
Current wording
CRE. Our CRE loans are used to purchase or refinance office buildings, retail centers, industrial facilities, medical facilities and mixed-used buildings. CRE loans have 69% of their exposure in New York City. Our CRE loans have been underwritten under stringent guidelines on loan-to-value and debt service coverage ratios that are designed to mitigate credit and concentration risk in this loan category. The average current LTV of our CRE loans is approximately 42%.
Previous wording
Our CRE loans totaled $409.0 million at March 31, 2025, which comprised 8.7% of our total loan portfolio. During the three months ended March 31, 2025, the CRE loan portfolio decreased by 0.6% from $411.4 million at December 31, 2024.
Current wording
Our CRE loans totaled $422.1 million at June 30, 2025, which comprised 9.0% of our total loan portfolio. During the six months ended June 30, 2025, the CRE loan portfolio increased by 2.6% from $411.4 million at December 31, 2024.
Previous wording
Our retail loan portfolio comprised 36.2% of our total loan portfolio at March 31, 2025 and 36.7% of our loan portfolio at December 31, 2024. The major categories of our retail loan portfolio are discussed below.
Current wording
Our retail loan portfolio comprised 35.4% of our total loan portfolio at June 30, 2025 and 36.7% of our loan portfolio at December 31, 2024. The major categories of our retail loan portfolio are discussed below.
Previous wording
Residential real estate lending. Our residential 1-4 family mortgage loans are residential mortgages that are primarily secured by single-family homes, which can be owner occupied or investor owned. Our residential real estate lending portfolio is 99% first mortgage loans and 1% second mortgage loans. These loans are either originated by our loan officers or purchased from other originators with the servicing generally retained by such originators. As of March 31, 2025, approximately 80% of our residential 1-4 family mortgage loans were either originated by our loan officers or were acquired in our acquisition of New Resource Bank, and 20% were purchased. Our residential real estate lending loans totaled $1.30 billion at March 31, 2025, which comprised 77.0% of our retail loan portfolio and 27.9% of our total loan portfolio. As of March 31, 2025, our residential real estate lending loans decreased by 0.7% from $1.31 billion at December 31, 2024.
Current wording
Residential real estate lending. Our residential 1-4 family mortgage loans are residential mortgages that are primarily secured by single-family homes, which can be owner occupied or investor owned. Our residential real estate lending portfolio is 99% first mortgage loans and 1% second mortgage loans. These loans are either originated by our loan officers or purchased from other originators with the servicing retained by the originator. For loans not serviced by the originator, loan servicing is outsourced to a third-party subservicer engaged by the Bank. As of June 30, 2025, the majority of our residential 1-4 family mortgage loans were originated by our loan officers. Our residential real estate lending loans totaled $1.29 billion at June 30, 2025, which comprised 77.4% of our retail loan portfolio and 27.4% of our total loan portfolio. As of June 30, 2025, our residential real estate lending loans decreased by 1.6% from $1.31 billion at December 31, 2024.
Previous wording
Consumer solar. Our consumer solar portfolio is comprised of purchased residential solar loans, secured by Uniform Commercial Code financing statements. Our consumer solar loans totaled $356.6 million at March 31, 2025, which comprised 7.6% of our total loan portfolio, compared to $365.5 million, or 7.8% of our total loan portfolio, at December 31, 2024.
Current wording
Consumer solar. Our consumer solar portfolio is comprised of purchased residential solar loans, secured by Uniform Commercial Code financing statements. Our consumer solar portfolio is fully acquired and is in run-off mode. Our consumer solar loans totaled $345.6 million at June 30, 2025, which comprised 7.3% of our total loan portfolio, compared to $365.5 million, or 7.8% of our total loan portfolio, at December 31, 2024.
Previous wording
Consumer and other. Our consumer and other portfolio is comprised of purchased student loans, unsecured consumer loans and overdraft lines. Our consumer and other loans totaled $32.1 million at March 31, 2025, which comprised 0.7% of our total loan portfolio, compared to $34.6 million, or 0.8% of our total loan portfolio, at December 31, 2024.
Current wording
Consumer and other. Our consumer and other portfolio is comprised of purchased student loans, unsecured consumer loans and overdraft lines. Our consumer and other loans totaled $31.3 million at June 30, 2025, which comprised 0.7% of our total loan portfolio, compared to $34.6 million, or 0.8% of our total loan portfolio, at December 31, 2024.
Previous wording
The following tables presents, by loan type, the changes in the allowance for credit losses for the three months ended March 31, 2025 and March 31, 2024:
Current wording
The following tables presents, by loan type, the changes in the allowance for credit losses for the three and six months ended June 30, 2025 and June 30, 2024:
Previous wording
During the quarter, the allowance for credit losses on loans decreased$2.4 million to$57.7 million at March 31, 2025 from$60.1 millionat December 31, 2024. The ratio of allowance to total loans was 1.23% at March 31, 2025 and 1.29% at December 31, 2024.
Current wording
During the quarter, the allowance for credit losses on loans increased$1.3 million to$59.0 million at June 30, 2025 from$57.7 millionat March 31, 2025. The ratio of allowance to total loans was 1.25% at June 30, 2025 and 1.23% at March 31, 2025.
Previous wording
Nonperforming assets totaled $33.9 million, or 0.41% of period-end total assets at March 31, 2025, an increase of $8.0 million, compared with $25.9 million, or 0.31% of period-end total assets at December 31, 2024. The increase in non-performing assets at March 31, 2025 compared to December 31, 2024 assets was primarily driven by a $11.8 million increase in commercial and industrial nonaccrual loans offset by a $3.9 million decrease in held for sale nonaccrual loans.
Current wording
Nonperforming assets totaled $35.2 million, or 0.41% of period-end total assets at June 30, 2025, an increase of $9.3 million, compared with $25.9 million, or 0.31% of period-end total assets at December 31, 2024. The increase in non-performing assets at June 30, 2025 compared to December 31, 2024 assets was primarily driven by a $11.5 million and a $2.2 million increase in commercial and industrial nonaccrual loans and residential real estate nonaccrual loans, respectively, offset by a $4.4 million decrease in held for sale nonaccrual loans.
Previous wording
Potential problem loans are loans which management has doubts as to the ability of the borrowers to comply with the present loan repayment terms. Potential problem loans are performing loans and include our special mention and substandard-accruing commercial loans and/or retail loans 30-89 days past due. Potential problem loans are not included in the nonperforming assets table above and totaled $140.8 million, or 1.7% of total assets, at March 31, 2025, as follows: $78.8 million are commercial loans currently in workout that management expects will be rehabilitated; $48.2 million are commercial loans that are 30-89 days delinquent; $8.0 million are residential real estate loans at 30-89 days delinquent, and $5.8 million are consumer loans at 30-89 days delinquent.
Current wording
Potential problem loans are loans which management has doubts as to the ability of the borrowers to comply with the present loan repayment terms. Potential problem loans are performing loans and include our special mention and substandard-accruing commercial loans and/or retail loans 30-89 days past due. Potential problem loans are not included in the nonperforming assets table above and totaled $119.0 million, or 1.4% of total assets, at June 30, 2025, as follows: $90.6 million are commercial loans currently in workout that management expects will be rehabilitated; $10.8 million are commercial loans that are 30-89 days delinquent; $12.3 million are residential real estate loans at 30-89 days delinquent, and $5.8 million are consumer loans at 30-89 days delinquent.
Previous wording
As of March 31, 2025, we entered into $41.7 million of short term investments of resell agreements backed by government guaranteed loans and other loans, with a weighted average interest rate of 6.69%. As of December 31, 2024, we have entered into $23.7 million of short term investments of resell agreements backed by residential mortgage loans, with a weighted interest rate of 6.91%.
Current wording
As of June 30, 2025, we entered into $57.0 million of short term investments of resell agreements backed by government guaranteed loans and other loans, with a weighted average interest rate of 6.63%. As of December 31, 2024, we have entered into $23.7 million of short term investments of resell agreements backed by residential mortgage loans, with a weighted interest rate of 6.91%.
Previous wording
We had a deferred tax asset, net of deferred tax liabilities, of $33.8 million at March 31, 2025 and $42.4 million at December 31, 2024. As of March 31, 2025, our deferred tax assets were fully realizable with no valuation allowance held against the balance. Our management concluded that it was more-likely-than-not that the entire amount will be realized.
Current wording
We had a deferred tax asset, net of deferred tax liabilities, of $33.7 million at June 30, 2025 and $42.4 million at December 31, 2024. As of June 30, 2025, our deferred tax assets were fully realizable with no valuation allowance held against the balance. Our management concluded that it was more-likely-than-not that the entire amount will be realized.
Previous wording
Deposits represent our primary source of funds. We are focused on growing our core deposits through relationship-based banking with our business and consumer clients. Total deposits were $7.41 billion at March 31, 2025, compared to $7.18 billion at December 31, 2024. We believe that our strong deposit franchise is attributable to our mission-based strategy of developing and maintaining relationships with our clients who share similar values and through maintaining a high level of service.
Current wording
Deposits represent our primary source of funds. We are focused on growing our core deposits through relationship-based banking with our business and consumer clients. Total deposits were $7.73 billion at June 30, 2025, compared to $7.18 billion at December 31, 2024. We believe that our strong deposit franchise is attributable to our mission-based strategy of developing and maintaining relationships with our clients who share similar values and through maintaining a high level of service.
Previous wording
We gather deposits through each of our three branch locations across New York City, our one branch in Washington, D.C., our one branch in San Francisco and through the efforts of our commercial banking team including our Boston group which focuses nationally on business growth. Through our branch network, online, mobile and direct banking channels, we offer a variety of deposit products including demand deposit accounts, money market deposits, NOW accounts, savings and certificates of deposit, ICS accounts, Certificate of Deposit Account Registry Service accounts, and brokered certificates of deposit. We bank politically active customers, such as campaigns, PACs ("political action committees"), and state and national party committees, which we refer to as political deposits. These deposits exhibit seasonality based on election cycles. As of March 31, 2025 and December 31, 2024, we had approximately $1.07 billion and $969.6 million, respectively, in political deposits on- and off-balance sheet which are primarily in demand deposits.
Current wording
We gather deposits through each of our three branch locations across New York City, our one branch in Washington, D.C., our one branch in San Francisco and through the efforts of our commercial banking team including our Boston group which focuses nationally on business growth. Through our branch network, online, mobile and direct banking channels, we offer a variety of deposit products including demand deposit accounts, money market deposits, NOW accounts, savings and certificates of deposit, ICS accounts, Certificate of Deposit Account Registry Service accounts, and brokered certificates of deposit. We bank politically active customers, such as campaigns, PACs ("political action committees"), and state and national party committees, which we refer to as political deposits. These deposits exhibit seasonality based on election cycles. As of June 30, 2025 and December 31, 2024, we had approximately $1.21 billion and $969.6 million, respectively, in political deposits on- and off-balance sheet which are primarily in demand deposits.
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Current report — wording carried from elsewhere
The following table sets forth information related to our average balance sheet, average yields on assets, and average costs of liabilities for the periods indicated:
Current report — wording carried from elsewhere
(1)Includes FHLBNY stock in the average balance, and dividend income on FHLBNY stock in interest income.
Current report — wording carried from elsewhere
(2)Includes prepayment penalty income in June YTD 2025 and June YTD 2024 of $200 and $18 thousand, respectively.
Current report — wording carried from elsewhere
Net interest spread was 2.43% for the six months ended June 30, 2025, compared to 2.17% for the same period in 2024, an increase of 26 basis points. Our net interest margin was 3.55% for the six months ended June 30, 2025, an increase of 8 basis points from 3.47% in the same period of 2024. This was largely due to increases in yields and average balances on interest-bearing assets, partially offset by an increase in total cost of funds.
Current report — wording carried from elsewhere
The yield on average earning assets was 5.07% for the six months ended June 30, 2025, compared to 4.96% for the same period in 2024, an increase of 11 basis points. This increase was driven primarily by the current rate environment resulting in increased yields across securities and loan portfolios.
Current report — wording carried from elsewhere
The average rate on interest-bearing liabilities was 2.64% for the six months ended June 30, 2025, a decrease of 15 basis points from the same period in 2024, which was primarily due to an increase in average balances of deposits, particularly in savings, NOW, money market deposits and time deposits. Non-interest-bearing deposits represented 38.8% of average deposits for the three months ended June 30, 2025, compared to 44.7% for the three months ended June 30, 2024.
Current report — wording carried from elsewhere
Non-interest income was$14.4 million for the six months ended June 30, 2025, compared to$19.5 million for the six months ended June 30, 2024. The decrease of$5.1 millionwas primarily due to a$7.5 million decrease in service charges on deposit accounts primarily due to decreases in Insured Cash Sweep ("ICS") One-Way Sell income and a$3.0 million decrease in income from equity investments, offset by a$3.8 million decrease in losses on sale of securities, a$0.8 million increase in gain on sale of loans and changes in fair value on loans held-for-sale, a$0.6 million increase in trust department fees, and a$0.2 million increase in bank-owed life insurance income. Our Trust Department fees were $8.1 million in thesix months of 2025, and $7.5 million in the same period in 2024.
Current report — wording carried from elsewhere
Potential problem loans are not included in the nonperforming assets table above and totaled $109.4 million, or 1.3% of total assets, at December 31, 2024, as follows: $79.9 million are commercial loans currently in workout that management expects will be rehabilitated; $17.8 million are commercial loans that are 30-89 days delinquent; $6.2 million are residential real estate loans at 30-89 days delinquent and $5.6 million are consumer loans at 30-89 days delinquent.
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Previous report — wording carried elsewhere
(3) nature and volume of financial assets; (4) value of the underlying collateral; (5) lending policies and procedures; (6) quality of the loan review system; (7) the experience, ability, and depth of staff; (8) regulatory and legal environment; (9) changes in market conditions; and (10) changes in economic conditions.