Amalgamated Financial Corp.

Amalgamated Financial Corp. (AMAL) operates as a Delaware public benefit corporation, serving as the holding company for Amalgamated Bank, a New York state-chartered commercial bank. The company's core business model is rooted in socially responsible banking, targeting mission-aligned customer segments such as labor unions, nonprofits, foundations, and impact businesses, including those promoting net-zero renewable energy and affordable housing. This strategy aims to attract a growing base of customers who prioritize values-aligned financial stewardship, providing a competitive advantage in generating low-cost core deposits. As of December 31, 2025, Workers United, a successor to the Amalgamated Clothing Workers of America, remains a significant stockholder, holding approximately 38% of AMAL's equity.

The company generates revenue through a comprehensive suite of commercial and retail banking products, investment management, and trust and custody services. Revenue streams include interest income from loans and securities, as well as non-interest income from Trust Department fees, service charges on deposit accounts, and bank-owned life insurance. The business model emphasizes relationship-based, personalized service and customized solutions, which has historically driven growth in commercial banking, trust and investment management, and contributed to consumer banking. The company's deposit base is primarily composed of core deposits, with 41% non-interest-bearing accounts and an average cost of deposits of 160 basis points for the year ended December 31, 2025.

AMAL's product and service lines are diversified across Commercial Banking, Trust and Investment Management, and Consumer Banking. Commercial banking offers commercial and industrial (C&I) loans, commercial real estate (CRE) loans, and multifamily loans. The Trust and Investment Management division provides institutional trust, custody, and investment management services, including asset safekeeping, corporate actions, income collections, and proxy services, with offerings spanning index and actively-managed funds across equity, fixed-income, real estate, and alternative investment strategies. Consumer banking includes residential mortgage loans (now referred through a marketing services agreement), consumer solar loans, and other consumer loans, alongside a variety of commercial and consumer deposit products.

For the fiscal year ended December 31, 2025, AMAL reported net income of $104.4 million ¹, or $3.41 per average diluted share ². Total assets stood at $8.87 billion ³, with total loans, net of deferred fees and allowance, at $4.90 billion ⁴. Total deposits reached $7.95 billion ⁵, and stockholders' equity was $794.5 million ⁶. The Trust and Investment Management business managed $38.63 billion ⁷ in assets under custody and $16.63 billion ⁸ in assets under management. Net interest income for the year was $297.8 million ⁹, with a net interest margin of 3.59% ¹⁰.

Comparing fiscal year 2025 to 2024, net income decreased by $2.0 million ¹¹ from $106.4 million ¹² in 2024. Diluted EPS also saw a slight decrease from $3.44 ¹³ in 2024 to $3.41 ² in 2025. Net interest income increased by $15.4 million ¹⁴, or 5.4% ¹⁵, driven by higher yields on loans, which outpaced the increase in the cost of deposits. However, non-interest income decreased by $2.3 million ¹⁶ to $30.9 million ¹⁷, primarily due to a $14.8 million ¹⁸ decrease in service charges on deposit accounts, largely from reduced IntraFi Insured Cash Sweep network ("ICS") One-Way Sell income. Total non-interest expense increased by $12.5 million ¹⁹ to $172.2 million ²⁰, mainly due to a $4.8 million ²¹ increase in compensation expense, a $4.3 million ²² increase in professional fees, and a $4.3 million ²³ increase in technology expense. The provision for credit losses increased by $6.0 million ²⁴ to $16.3 million ²⁵ in 2025 from $10.3 million ²⁶ in 2024.

Significant operational developments during 2025 included the addition of $197.8 million ²⁷ in PACE assets. The company also entered into a marketing services agreement with Embrace Home Loans, effective February 2026, to refer customers for residential loan services, aligning with a broader strategic focus. Furthermore, the company invested $2.4 million ²⁸ in a solar tax equity investment compliant with ASU 2023-02 and committed to additional fundings of $5.6 million ²⁹. The company also entered into new fifteen-year leases for its new headquarters in New York City, a thirty-month lease for a commercial office in Oakland, California, and a forty-two-month lease for a branch relocation in New York City, all expected to commence in 2026.

Management's specific revenue, margin, or EPS guidance for the upcoming period is not explicitly stated in the filing. However, the company's strategic focus is on continued deposit-led organic growth and prudent asset allocation.

A major growth area for Amalgamated Financial Corp. is the continued development of organic relationships within its target customer segments to support the growth of its high-quality, low-cost core deposit base. The company believes its differentiated model of providing relationship-based, personalized service and customized solutions, while sharing customers' values, will drive growth in its core banking and trust and investment management businesses. This strategy has historically resulted in a lower cost funding base, with core deposits totaling $7.75 billion ³⁰ as of December 31, 2025, representing 97% ³¹ of total deposits, and a 5.8% ³² compound annual growth rate over the last five years.

Geographic expansion is another key growth vector. Following successful expansions into Washington, D.C., and San Francisco through acquisition, the company opened its first commercial office in Boston in 2020. AMAL intends to continue evaluating opportunities to efficiently expand its geographic footprint into other large metropolitan areas throughout the United States that share similar characteristics with a dense constituency of socially responsible organizations and individuals.

The Trust and Investment Management business is expected to continue its growth trajectory, fueled by the expansion of the commercial banking business. As of December 31, 2025, assets under custody were $38.63 billion ⁷ and assets under management were $16.63 billion ⁸. The company's existing commercial clients have substantial trust and investment management needs, and the current infrastructure provides the necessary scale to increase market presence among corporations, endowments, foundations, and family offices. The partnership with Invesco as the primary investment management subadvisor, with over $2.17 trillion ³³ in assets under management as of December 2025, is expected to further support this growth.

From an operational perspective, the company plans to prudently manage its excess liquidity, which has historically been generated by its low-cost core deposits, to optimize risk-adjusted returns. The lending strategy will continue to focus on commercial real estate loans, C&I loans, and clean energy project finance, alongside purchases of high-quality loans such as government-guaranteed loans and syndicated loans. The company has also entered into a marketing services agreement with Embrace Home Loans, effective February 2026, to refer customers for residential loan services, which will advance its broader strategic focus.

Planned capital allocation includes continued investment in information technology systems to maintain scalability, efficiency, and security. The company also engages in share repurchases, with a new share repurchase program authorized by the Board of Directors on March 10, 2025, allowing for the repurchase of up to $40 million ³⁴ of its common stock. During the quarter ended December 31, 2025, $8.6 million ³⁵ of common stock was purchased under this program. The company also intends to continue paying a quarterly cash dividend, subject to various factors including financial condition, liquidity, capital levels, and regulatory approvals.

Management explicitly flagged several structural headwinds and execution risks. The implementation of a regulatory reform agenda by the current presidential administration, which is significantly different from the prior administration, is impacting rulemaking, supervision, examination, and enforcement of banking regulation agencies. Specifically, the 2025 GENIUS Act and related federal mandates, along with NYDFS rulemaking, aimed at curbing "debanking," limit the company's ability to manage credit and reputational risk. These measures may result in increased compliance costs to justify account closures, heightened exposure to fraud and AML losses due to limited ability to terminate relationships with customers in high-risk sectors, and adverse impacts on operational efficiency because of the 30-day mandatory notice period for most account closures. These anti-debanking measures may also expose the company to customer-led litigation alleging violation of fair access standards.

Geographic, regulatory, and macro factors identified as constraints include the concentration of operations and clients in New York City, Washington, D.C., and San Francisco, making the company susceptible to adverse economic and social conditions in these areas. Changes in U.S. trade policies and other global political factors, such as tariffs and sanctions, may negatively impact customers' costs and demand for products. Fluctuations in interest rates, influenced by inflation, recession, and monetary policies of the Federal Reserve, are a significant market risk that could affect net interest income and asset valuations. The FOMC's statement on January 28, 2026, to maintain short-term interest rates at a range of 3.5% to 3.75% ³⁶, with future changes being data-dependent, implies a period of constant rates for the immediate future.

Amalgamated Financial Corp. faces material macroeconomic risks including uncertain conditions in the banking industry and national, regional, and local economies, which could lead to increased credit losses and deposit outflows. Fluctuations in interest rates, particularly if short-term rates increase while long-term rates remain stable or increase slower, could result in net interest margin compression. The company's concentration in metropolitan areas like New York City, Washington, D.C., and San Francisco, and its significant real estate loan portfolio (33.2% ³⁷ multifamily and 7.3% ³⁸ commercial real estate as of December 31, 2025), exposes it to declines in real estate values and adverse conditions in these specific markets, including the impact of rent-control regulations in New York. Operational risks include increased losses from evolving fraud schemes, potential failures in internal controls over financial reporting, and reliance on third-party servicers for critical systems, which could lead to disruptions or security breaches. The company is also exposed to risks related to its PACE financings, particularly with the CFPB's final rule on residential PACE transactions effective March 1, 2026, which could lead to reputational and litigation risks if compliance fails. Regulatory risks are heightened by the current presidential administration's regulatory reform agenda, including the 2025 GENIUS Act and NYDFS rules curbing "debanking," which may limit the company's ability to manage credit and reputational risk, increase compliance costs, and expose it to litigation. Geopolitical instability, such as the Russian invasion of Ukraine and the Israel-Hamas conflict, also poses a risk to financial markets and economic activity. The company's social responsibility positions and ESG products may also draw public criticism, governmental scrutiny, and litigation, including "greenwashing claims," potentially damaging its reputation and financial performance.

Management's message to shareholders emphasizes a commitment to being America's socially responsible bank, empowering organizations and individuals to advance positive change. They highlight a business strategy focused on providing impact banking and lending services to a customer base that aligns with their values, leveraging a 100-year history of serving working people, labor unions, nonprofits, foundations, and impact businesses. Key strategic priorities for the period ahead include focusing on deposit-led organic growth by developing relationships in target customer segments, prudently managing excess liquidity to optimize risk-adjusted returns, and strategically expanding into new geographic markets that share similar characteristics with a dense constituency of socially responsible organizations and individuals. Management also stresses the importance of disciplined risk and expense management to protect the banking franchise. The company aims to further enhance its franchise value by continuing to develop organic relationships with its target customer base in existing markets and expanding strategically into new geographies.