0001823608-26-000048
SEC filingAmalgamated Financial Corp. (AMAL) reported net income of $104.4 million for FY 2025, a slight decrease from $106.4 million in FY 2024. The company's net interest income increased to $297.8 million from $282.4 million the prior year, driven by higher interest income from loans and securities. Non-interest income declined to $30.9 million from $33.2 million, primarily due to lower service charges on deposit accounts and net losses on asset sales. Total assets grew to $8.87 billion from $8.26 billion, supported by a $768.6 million increase in deposits and a $342.0 million net increase in loans. The company maintained strong capital ratios, with total risk-based capital at 16.40% and a leverage ratio of 9.36%, both exceeding regulatory well-capitalized requirements. Earnings per share were $3.00 for both basic and diluted shares.
Amalgamated Financial Corp. reported FY 2025 net income of $104.4 million, representing a slight decrease from $106.4 million in FY 2024. The company's total interest and dividend income increased to $422.2 million from $401.3 million, while total interest expense rose to $124.4 million from $118.9 million, resulting in net interest income of $297.8 million compared to $282.4 million the prior year. Non-interest income declined to $30.9 million from $33.2 million, primarily due to lower service charges on deposit accounts ($17.5 million vs. $32.2 million) and net losses on securities and loan sales. Non-interest expense increased to $172.2 million from $159.8 million, with compensation and employee benefits rising to $98.6 million from $93.8 million. The provision for credit losses was $16.3 million, up from $10.3 million in FY 2024.
The company's revenue is primarily derived from interest income on loans and securities. Interest income from loans increased to $240.6 million from $215.4 million, while securities income was $176.3 million compared to $177.2 million. Interest-bearing deposits in banks generated $5.3 million, down from $8.7 million. Non-interest income sources include Trust Department fees ($16.2 million), service charges on deposit accounts ($17.5 million), bank-owned life insurance income ($3.1 million), and other income ($2.0 million). The company experienced losses on sale of securities and other assets (-$3.4 million) and losses on sale of loans and changes in fair value on loans held-for-sale (-$2.7 million).
The company's net interest margin, calculated as net interest income divided by average interest-earning assets, showed improvement as net interest income grew 5.4% while average assets increased. The operating margin (income before income taxes divided by total revenue) was 33.2%. Profitability metrics show return on average assets of approximately 1.2% and return on average equity of approximately 13.1%. The efficiency ratio (non-interest expense divided by total revenue) increased due to higher operating costs. Compensation and employee benefits represented the largest expense category at $98.6 million, followed by technology expenses at $24.1 million and professional fees at $14.3 million.
The company generated $135.8 million in net cash from operating activities, a slight increase from $124.1 million in FY 2024. Investing activities used $378.0 million in cash, primarily for net loan increases ($342.0 million) and securities purchases. Financing activities provided $472.7 million in cash, driven by a $768.6 million increase in deposits offset by a $244.9 million decrease in borrowings. Total assets grew to $8.87 billion from $8.26 billion, with loans receivable net increasing to $4.90 billion from $4.61 billion. Deposits totaled $7.95 billion, with 41% in non-interest-bearing accounts. The company maintained strong liquidity with $291.2 million in cash and cash equivalents. Capital ratios exceeded regulatory requirements with total risk-based capital at 16.40% and Tier 1 capital at 14.23%.
The company's business strategy focuses on being America's socially responsible bank, serving mission-aligned customers including nonprofits, labor unions, and socially responsible businesses. Key growth areas include commercial banking, trust and investment management, and consumer banking. The company faces risks from economic conditions, interest rate fluctuations, and concentration in metropolitan markets (New York City, Washington D.C., San Francisco). Regulatory developments, including changes to capital requirements and consumer protection rules, may impact operations. The company continues to focus on deposit-led organic growth, geographic expansion, and prudent asset allocation while maintaining disciplined risk and expense management.