amal-20250331

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For transition period from to

Commission File Number: 001-40136

Amalgamated Financial Corp.

(Exact name of registrant as specified in its charter)


Delaware						85-2757101
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

275 Seventh Avenue, New York, NY 10001

(Address of principal executive offices) (Zip Code)

(212) 255-6200

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	AMAL	The Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b–2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes ☐ No ☒

As of May 5, 2025, the registrant had 30,589,730 shares of common stock outstanding at $0.01 par value per share.

TABLE OF CONTENTS


		Page
Cautionary Note Regarding Forward-Looking Statements		ii

PART I – FINANCIAL INFORMATION

ITEM 1.	Financial Statements (unaudited)

	Consolidated Statements of Financial Condition as of March 31, 2025 and December 31, 2024	1
	Consolidated Statements of Income for the Three Months Ended March 31, 2025 and 2024	2
	Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2025 and 2024	3
	Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2025 and 2024	4
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024	6
	Notes to Consolidated Financial Statements	8

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	43

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	66

ITEM 4.	Controls and Procedures	66

PART II - OTHER INFORMATION

ITEM 1.	Legal Proceedings	67

ITEM 1A.	Risk Factors	67

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	67





ITEM 5.	Other Information	68

ITEM 6.	Exhibits	69

Signatures		71

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Unless the context indicates otherwise, references to “we,” “us,” “our” and the “Company” refer to Amalgamated Financial Corp. and Amalgamated Bank. References to the “Bank” refer to Amalgamated Bank.

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are not statements of historical or current fact nor are they assurances of future performance and generally can be identified by the use of forward-looking terminology, such as “may,” “will,” “anticipate,” “aspire,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “in the future,” “may” and “intend,” as well as other similar words and expressions of the future. These forward-looking statements include, but are not limited to, statements related to our projected growth, anticipated future financial performance, and management’s long-term performance goals, as well as statements relating to the anticipated effects on results of operations and financial condition from expected developments or events, or business and growth strategies, including anticipated internal growth.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any or all of which could cause actual results to differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to:

1.uncertain conditions in the banking industry and in national, regional and local economies in core markets, which may have an adverse impact on business, operations and financial performance;

2.deterioration in the financial condition of borrowers resulting in significant increases in credit losses and provisions for those losses;

3.deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors;

4.changes in deposits, including an increase in uninsured deposits;

5.ability to maintain sufficient liquidity to meet deposit and debt obligations as they come due, which may require that the Company sell investment securities at a loss, negatively impacting net income, earnings and capital;

6.unfavorable conditions in the capital markets, which may cause declines in stock price and the value of investments;

7.negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumer confidence, the financial condition of borrowers and consumer spending habits, which may affect, among other things, the level of non-performing assets, charge-offs and provision expense;

8.fluctuations or unanticipated changes in the interest rate environment including changes in net interest margin or changes in the yield curve that affect investments, loans or deposits;

9.the general decline in the real estate and lending markets, particularly in commercial real estate in the Company’s market areas, and the effects of the enactment of or changes to rent-control and other similar regulations on multi-family housing;

10.potential implementation by the current presidential administration of a regulatory reform agenda that is significantly different from that of the prior presidential administration, impacting the rule making, supervision, examination and enforcement of the banking regulation agencies;

11.changes in U.S. trade policies and other global political factors beyond the Company’s control, including the imposition of tariffs, which raise economic uncertainty, potentially leading to slower growth and a decrease in loan demand;

12.the outcome of legal or regulatory proceedings that may be instituted against us;

13.inability to achieve organic loan and deposit growth and the composition of that growth;

14.composition of the Company’s loan portfolio, including any concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which the Company operates;

15.inaccuracy of the assumptions and estimates the Company makes and policies that the Company implements in establishing the allowance for credit losses;

16.changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments;

17.any matter that would cause the Company to conclude that there was impairment of any asset, including intangible assets;

18.limitations on the ability to declare and pay dividends;

19.the impact of competition with other financial institutions, including pricing pressures and the resulting impact on results, including as a result of compression to net interest margin;

20.increased competition for experienced members of the workforce including executives in the banking industry;

21.a failure in or breach of operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches;

22.increased regulatory scrutiny and exposure from the use of “big data” techniques, machine learning, and artificial intelligence;

23.a downgrade in the Company’s credit rating;

24.“greenwashing claims” against the Company and environmental, social, and governance ("ESG") products and increased scrutiny and political opposition to ESG and diversity, equity, and inclusion ("DEI") practices;

25.any unanticipated or greater than anticipated adverse conditions (including the possibility of earthquakes, wildfires, and other natural disasters) affecting the markets in which the Company operates;

26.physical and transitional risks related to climate change as they impact the business and the businesses that the Company finances;

27.future repurchase of the Company’s shares through the Company’s common stock repurchase program; and

28.descriptions of assumptions underlying or relating to any of the foregoing.

We caution readers that the foregoing list of factors is not exclusive, is not necessarily in order of importance and readers should not place undue reliance on any forward-looking statements, which should be read in conjunction with the other cautionary statements that are included elsewhere in this report. Additional factors that may cause actual results to differ materially from those contemplated by any forward-looking statements may be found in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC and available at the SEC’s website at https://www.sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made and we do not intend to and, except as required by law, disclaim any obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws.

iii


Part I Item 1. – Financial Statements Consolidated Statements of Financial Condition (Dollars in thousands except for per share amounts)
	March 31, 2025		December 31, 2024
Assets	(unaudited)
Cash and due from banks	$	4,196	$	4,042
Interest-bearing deposits in banks	61,518		56,707
Total cash and cash equivalents	65,714		60,749
Securities:
Available for sale, at fair value:
Traditional securities	1,546,127		1,477,047
Property Assessed Clean Energy ("PACE") assessments	161,147		152,011
	1,707,274		1,629,058
Held-to-maturity, at amortized cost:
Traditional securities, net of allowance for credit losses of $47 and $49, respectively	535,065		542,246
PACE assessments, net of allowance for credit losses of $654 and $655, respectively	1,038,052		1,043,959
	1,573,117		1,586,205

Loans held for sale	3,667		37,593
Loans receivable, net of deferred loan origination fees and costs	4,677,506		4,672,924
Allowance for credit losses	(57,676)		(60,086)
Loans receivable, net	4,619,830		4,612,838

Resell agreements	41,651		23,741
Federal Home Loan Bank of New York ("FHLBNY") stock, at cost	4,679		15,693
Accrued interest receivable	55,092		61,172
Premises and equipment, net	7,366		6,386
Bank-owned life insurance	108,652		108,026
Right-of-use lease asset	12,477		14,231
Deferred tax asset, net	33,799		42,437
Goodwill	12,936		12,936

Intangible assets, net	1,343		1,487
Equity method investments	5,639		8,482
Other assets	31,991		35,858
Total assets	$	8,285,227	$	8,256,892
Liabilities
Deposits	$	7,412,072	$	7,180,605


Borrowings	69,676		314,409
Operating leases	17,190		19,734
Other liabilities	50,293		34,490
Total liabilities	$	7,549,231	$	7,549,238

Commitments, contingencies and off balance sheet risk (see Note 11)

Stockholders’ equity
Common stock, par value $0.01 per share (70,000,000 shares authorized; 30,940,480 and 30,809,484 shares issued, respectively, and 30,696,940 and 30,670,982 shares outstanding, respectively)	$	309	$	308
Additional paid-in capital	288,539		288,656
Retained earnings	500,783		480,144



Accumulated other comprehensive loss, net of income taxes	(47,308)		(58,637)
Treasury stock, at cost (243,540 and 138,502 shares, respectively)	(6,327)		(2,817)


Total stockholders' equity	735,996		707,654
Total liabilities and stockholders’ equity	$	8,285,227	$	8,256,892

See accompanying notes to consolidated financial statements (unaudited)


Consolidated Statements of Income (unaudited) (Dollars in thousands, except for per share amounts)

	Three Months Ended March 31,
	2025		2024
INTEREST AND DIVIDEND INCOME
Loans	$	57,843	$	51,952
Securities	41,653		42,390

Interest-bearing deposits in banks	1,194		2,592
Total interest and dividend income	100,690		96,934
INTEREST EXPENSE
Deposits	28,917		25,891
Borrowed funds	1,196		3,006
Total interest expense	30,113		28,897
NET INTEREST INCOME	70,577		68,037
Provision for credit losses	596		1,588
Net interest income after provision for credit losses	69,981		66,449
NON-INTEREST INCOME
Trust Department fees	4,191		3,854
Service charges on deposit accounts	3,438		6,136
Bank-owned life insurance income	626		609
Losses on sale of securities	(680)		(2,774)
Gain on sale of loans and changes in fair value on loans held-for-sale, net	832		47

Equity method investments (loss) income	(2,508)		2,072
Other income	507		285
Total non-interest income	6,406		10,229
NON-INTEREST EXPENSE
Compensation and employee benefits	23,314		22,273
Occupancy and depreciation	3,293		2,904
Professional fees	4,739		2,376
Technology	5,619		4,629
Office maintenance and depreciation	629		663
Amortization of intangible assets	144		183

Advertising and promotion	51		1,219
Federal deposit insurance premiums	900		1,050
Other expense	2,961		2,855
Total non-interest expense	41,650		38,152
Income before income taxes	34,737		38,526
Income tax expense	9,709		11,277
Net income	$	25,028	$	27,249


Earnings per common share - basic	$	0.82	$	0.89
Earnings per common share - diluted	$	0.81	$	0.89

See accompanying notes to consolidated financial statements (unaudited)


Consolidated Statements of Comprehensive Income (unaudited) (Dollars in thousands)

	Three Months Ended March 31,
	2025		2024

Net income	$	25,028	$	27,249
Other comprehensive income (loss), net of taxes:



Change in total obligation for postretirement benefits, prior service credit, and other benefits	42		43
Net unrealized gains (losses) on securities:
Unrealized holding gains on securities available for sale	14,170		6,402
Reclassification adjustment for losses realized in income	680		2,774

Accretion of net unrealized loss on securities transferred to held-to-maturity	502		595
Net unrealized gains on securities	15,352		9,771
Net unrealized gains (losses) on cash flow hedges:
Unrealized holding gains on cash flow hedges	212		—
Reclassification adjustment for gains realized in income	(115)		—
Net unrealized gains on cash flow hedges	97		—
Other comprehensive income, before tax	15,491		9,814
Income tax expense	(4,162)		(2,682)
Total other comprehensive income, net of taxes	11,329		7,132
Total comprehensive income, net of taxes	$	36,357	$	34,381

See accompanying notes to consolidated financial statements (unaudited)

Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

(Dollars in thousands)


	Three Months Ended March 31, 2025
	Number of Shares of Common Stock	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss, net of income taxes		Treasury Stock, at cost		Total Amalgamated Financial Corp. Stockholders' Equity		Noncontrolling Interest		Total Stockholders' Equity
Balance at January 1, 2025	30,670,982	$	308	$	288,656	$	480,144	$	(58,637)	$	(2,817)	$	707,654	$	—	$	707,654
Net income	—	—		—		25,028		—		—		25,028		—		25,028

Common stock issued under Equity Programs	10,435	—		790		—		—		—		790		—		790
Dividends on common stock, $0.14 per share	—	—		—		(4,389)		—		—		(4,389)		—		(4,389)
Repurchase of common stock	(105,038)	—		—		—		—		(3,510)		(3,510)		—		(3,510)
Exercise of stock options, net of repurchases	17,607	—		(209)		—		—		—		(209)		—		(209)
Restricted stock units vesting, net of repurchases	102,954	1		(2,135)		—		—		—		(2,134)		—		(2,134)
Stock-based compensation expense	—	—		1,437		—		—		—		1,437		—		1,437
Other comprehensive income, net of taxes	—	—		—		—		11,329		—		11,329		—		11,329
Balance at March 31, 2025	30,696,940	$	309	$	288,539	$	500,783	$	(47,308)	$	(6,327)	$	735,996	$	—	$	735,996


	Three Months Ended March 31, 2024
	Number of Shares of Common Stock	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss, net of income taxes		Treasury Stock, at cost		Total Amalgamated Financial Corp. Stockholders' Equity		Noncontrolling Interest		Total Stockholders' Equity
Balance at January 1, 2024	30,428,359	$	307	$	288,232	$	388,033	$	(86,004)	$	(5,337)	$	585,231	$	133	$	585,364
Net income	—	—		—		27,249		—		—		27,249		—		27,249

Common stock issued under Equity Program	10,175	—		60		—		—		184		244		—		244
Dividends on common stock, $0.10 per share	—	—		—		(3,092)		—		—		(3,092)		—		(3,092)
Repurchase of common stock	(10,000)	—		—		—		—		(285)		(285)		—		(285)
Exercise of stock options, net of repurchases	24,540	—		(426)		—		—		426		—		—		—
Restricted stock units vesting, net of repurchases	57,319	—		(1,749)		—		—		994		(755)		—		(755)
Stock-based compensation expense	—	—		1,081		—		—		—		1,081		—		1,081
Other comprehensive income, net of taxes	—	—		—		—		7,132		—		7,132		—		7,132
Balance at March 31, 2024	30,510,393	$	307	$	287,198	$	412,190	$	(78,872)	$	(4,018)	$	616,805	$	133	$	616,938

See accompanying notes to consolidated financial statements (unaudited)


Consolidated Statements of Cash Flows (unaudited) (Dollars in thousands)










	Three Months Ended March 31,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES


Net income	$	25,028	$	27,249
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	265		2,019
Amortization of intangible assets	144		183
Deferred income tax expense	4,476		4,750

Provision for credit losses	596		1,588
Stock-based compensation expense	1,437		1,081



Net loss (gain) from equity method investments	2,508		(2,072)
Net loss on sale of securities available for sale	680		2,774
Net gain on sale of loans and change in fair value on loans held-for-sale, net	(832)		(47)



Proceeds from sales of loans originated as held for sale	3,534		7,084
Originations of loans held for sale	(5,562)		(7,357)
Increase in cash surrender value of bank-owned life insurance	(626)		(609)

Decrease in accrued interest receivable	6,080		2,048
Decrease in other assets	6,278		9,985



Decrease in other liabilities	(9,792)		(17,414)
Net cash provided by operating activities	34,214		31,262
CASH FLOWS FROM INVESTING ACTIVITIES


Net increase in loans	(4,670)		(15,434)
Proceeds from sales of loans originated as held for investment	34,844		—
Purchase of securities available for sale	(144,007)		(142,368)
Purchase of securities held-to-maturity	(17,807)		(38,918)
Proceeds from sales of securities available for sale	16,119		78,827
Maturities, principal payments and redemptions of securities available for sale	86,048		46,038
Maturities, principal payments and redemptions of securities held-to-maturity	31,176		61,975
Increase in resell agreements	(17,910)		(81,242)
Decrease in equity method investments	335		295

Decrease (increase) in FHLBNY stock, net	11,014		(214)
Purchases of premises and equipment, net	(1,753)		(207)




Net cash used in investing activities	(6,611)		(91,248)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits	231,467		293,777

Net decrease in other borrowings	(244,754)		(165,246)

Common stock issued under Equity Programs	790		244

Repurchase of common stock	(3,510)		(285)
Dividends paid on common stock	(4,288)		(3,115)
Payments related to repurchase of common stock for equity awards	(2,343)		(755)


Net cash (used in) / provided by financing activities	(22,638)		124,620
Increase (decrease) in cash, cash equivalents, and restricted cash	4,965		64,634
Cash, cash equivalents, and restricted cash at beginning of year	60,749		90,570
Cash, cash equivalents, and restricted cash at end period	$	65,714	$	155,204


Supplemental disclosures of cash flow information:
Interest paid during the period	$	29,561	$	34,527
Income taxes paid during the period	1,508		317

Supplemental non-cash activities:
Right-of-use assets obtained in exchange for lease liabilities	—		560

Loans transferred to held for investment	1,942		—


Purchase of securities available for sale, net not settled	22,000		21,000

See accompanying notes to consolidated financial statements (unaudited)


Notes to Consolidated Financial Statements (unaudited)

1. BASIS OF PRESENTATION AND CONSOLIDATION

Basis of Accounting and Changes in Significant Accounting Policies

In this discussion, unless the context indicates otherwise, references to “we,” “us,” “our” and the “Company” refer to Amalgamated Financial Corp. and Amalgamated Bank. References to the “Bank” refer to Amalgamated Bank.

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America, or GAAP and predominant practices within the banking industry. The Company uses the accrual basis of accounting for financial statement purposes.

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The annualized results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All significant inter-company transactions and balances are eliminated in consolidation. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position and the results of operations as of the dates and for the interim periods presented have been included. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes appearing in the Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”). A more detailed description of our accounting policies is included in the 2024 Annual Report, which remain significantly unchanged.

Recently Adopted Accounting Standards

ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323) - Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method

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.

ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures

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. The Company adopted the standard for the year ended December 31, 2024 and for interim reporting periods beginning with the quarter ended March 31, 2025. The adoption resulted in a disclosure requirement but did not result in a material impact on the Company’s Consolidated Financial Statements See Note 15.


Notes to Consolidated Financial Statements (unaudited)

2. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following is a summary of the accumulated comprehensive income (loss) balances, net of income taxes:


	Unrealized loss on benefits plans		Unrealized loss on available for sale securities		Unaccreted unrealized loss on securities transferred to held-to-maturity		Unrealized gains on cash flow hedges		Total Accumulated Other Comprehensive Loss
(In thousands)
Balance as of January 1, 2025	$	(1,364)	$	(49,136)	$	(8,608)	$	471	$	(58,637)
Current Period Change	42		14,850		502		97		15,491
Income Tax Effect	(11)		(3,989)		(136)		(26)		(4,162)
Balance as of March 31, 2025	$	(1,333)	$	(38,275)	$	(8,242)	$	542	$	(47,308)

Balance as of January 1, 2024	$	(1,481)	$	(74,348)	$	(10,175)	$	—	$	(86,004)
Current Period Change	43		9,176		595		—		9,814
Income Tax Effect	(11)		(2,508)		(163)		—		(2,682)
Balance as of March 31, 2024	$	(1,449)	$	(67,680)	$	(9,743)	$	—	$	(78,872)


Notes to Consolidated Financial Statements (unaudited)

Other comprehensive income (loss) components and related income tax effects were as follows:


	Three Months Ended March 31,
	2025		2024
(In thousands)
Postretirement Benefit Plans
Change in obligation for postretirement benefits and for prior service credit	$	35	$	36
Reclassification adjustment for prior service expense included in compensation and employee benefits	7		7
Change in obligation for other benefits	—		—
Change in total obligation for postretirement benefits and for prior service credit and for other benefits	42		43
Income tax expense	(11)		(11)
Net change in total obligation for postretirement benefits and prior service credit and for other benefits	31		32

Securities
Unrealized holding gains on available for sale securities	14,170		6,402
Reclassification adjustment for losses realized in loss on sale of securities	680		2,774
Accretion of net unrealized loss on securities transferred to held-to-maturity	502		595
Change in unrealized gains on available for sale securities	15,352		9,771
Income tax expense	(4,125)		(2,671)
Net change in unrealized gains on securities	11,227		7,100

Derivatives
Unrealized holding gains on cash flow hedges	212		—
Reclassification adjustment for gains realized in income	(115)		—
Change in unrealized gains on cash flow hedges	97		—
Income tax expense	(26)		—
Net change in unrealized gains on cash flow hedges	71		—

Total	$	11,329	$	7,132


Notes to Consolidated Financial Statements (unaudited)

3. INVESTMENT SECURITIES

The amortized cost and fair value of investment securities available for sale and held-to-maturity as of March 31, 2025 are as follows:






		March 31, 2025
(In thousands)		Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
Available for sale:
Traditional securities:
Government sponsored entities ("GSE") certificates & Collateralized mortgage obligations ("CMOs")		$	551,294		$	3,581		$	(26,886)		$	527,989
Non-GSE certificates & CMOs	256,916			464			(13,301)			244,079
Asset-Backed Securities ("ABS")		683,288			1,234			(13,486)			671,036
Corporate		103,485			—			(8,422)			95,063
Other		7,736			224			—			7,960
		1,602,719			5,503			(62,095)			1,546,127
PACE assessments:
Residential PACE assessments		156,884			4,263			—			161,147







Total available for sale		$	1,759,603		$	9,766		$	(62,095)		$	1,707,274

		Amortized Cost			Gross Unrecognized Gains			Gross Unrecognized Losses			Fair Value
Held-to-maturity:
Traditional securities
GSE certificates & CMOs		$	186,534		$	1,038		$	(17,795)		$	169,777
Non-GSE certificates & CMOs		72,781			1			(4,997)			67,785
ABS		210,921			287			(5,737)			205,471
Municipal		64,875			—			(11,286)			53,589

		535,111			1,326			(39,815)			496,622
PACE assessments:
Commercial PACE assessments		271,200			—			(33,915)			237,285
Residential PACE assessments		767,507			—			(57,771)			709,736



		1,038,707			—			(91,686)			947,021

Total held-to-maturity		$	1,573,818		$	1,326		$	(131,501)		$	1,443,643

Allowance for credit losses		(701)

Total held-to-maturity, net of allowance for credit losses		$	1,573,117

As of March 31, 2025, available for sale securities with a fair value of $1.25 billion and held-to-maturity securities with a fair value of $470.2 million were pledged. The majority of the securities were pledged to the FHLBNY to secure outstanding advances, letters of credit and to provide additional borrowing potential. In addition, securities were pledged to provide capacity to borrow from the Federal Reserve Bank and to collateralize municipal deposits.


Notes to Consolidated Financial Statements (unaudited)

The amortized cost and fair value of investment securities available for sale and held-to-maturity as of December 31, 2024 are as follows:


	December 31, 2024
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale:
Traditional securities:
GSE residential CMOs	$	537,313	$	2,072	$	(31,227)	$	508,158
Non-GSE certificates & CMOs	229,513		243		(15,581)		214,175
ABS	665,548		1,349		(14,563)		652,334
Corporate	109,482		—		(11,167)		98,315
Other	4,197		—		(132)		4,065
	1,546,053		3,664		(72,670)		1,477,047
PACE assessments:
Residential PACE assessments	150,184		1,827		—		152,011






Total available for sale	$	1,696,237	$	5,491	$	(72,670)	$	1,629,058

	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Held-to-maturity:
Traditional securities:
GSE certificates & CMOs	$	188,194	$	707	$	(20,679)	$	168,222
Non-GSE certificates & CMOs	73,850		—		(5,993)		67,857
ABS	215,161		469		(6,437)		209,193
Municipal	65,090		39		(10,837)		54,292

	542,295		1,215		(43,946)		499,564
PACE assessments:
Commercial PACE assessments	268,692		—		(37,731)		230,961
Residential PACE assessments	775,922		—		(73,727)		702,195

	1,044,614		—		(111,458)		933,156

Total held-to-maturity	$	1,586,909	$	1,215	$	(155,404)	$	1,432,720

Allowance for credit losses	(704)

Total held-to-maturity, net of allowance for credit losses	$	1,586,205

There were no transfers to or from securities held-to-maturity during the three months ended March 31, 2025, or the three months ended March 31, 2024.


Notes to Consolidated Financial Statements (unaudited)

The following table summarizes the amortized cost and fair value of debt securities available for sale and held-to-maturity, exclusive of mortgage-backed securities, by their contractual maturity as of March 31, 2025. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty:






	Available for Sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
(In thousands)
Due within one year	$	222	$	223	$	2,414	$	2,232
Due after one year through five years	51,113		50,257		18,804		18,014
Due after five years through ten years	267,963		260,895		171,783		168,169
Due after ten years	632,095		623,831		1,121,502		1,017,666
	$	951,393	$	935,206	$	1,314,503	$	1,206,081

Proceeds received and gains and losses realized on sales of available for sale securities are summarized below:


	Three Months Ended,
	March 31, 2025		March 31, 2024
(In thousands)
Proceeds	$	16,119	$	78,827

Realized gains	$	—	$	—
Realized losses	(680)		(2,774)
Net realized losses	$	(680)	$	(2,774)

There were no sales of held-to-maturity securities during the three months ended March 31, 2025 or the three months ended March 31, 2024.

The Company controls and monitors inherent credit risk in its securities portfolio through due diligence, diversification, concentration limits, periodic securities reviews, and by investing in low risk securities. This includes high quality Non-Agency Securities, low loan-to-value ("LTV") PACE assessments and a significant portion of the securities portfolio in GSE obligations. GSEs include the Federal Home Loan Mortgage Corporation (“FHLMC”), the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”) and the Small Business Administration (“SBA”). GNMA is a wholly owned U.S. Government corporation whereas FHLMC, FNMA and SBA are private. Mortgage-related securities may include mortgage pass-through certificates, participation certificates and CMOs. At March 31, 2025 and December 31, 2024, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders' equity.


Notes to Consolidated Financial Statements (unaudited)

The following summarizes the fair value and unrealized losses for available for sale securities as of March 31, 2025 and December 31, 2024, respectively, segregated between securities that have been in an unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer at the respective dates:


	March 31, 2025
	Less Than Twelve Months				Twelve Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale:
Traditional securities:
GSE certificates & CMOs	$	43,436	$	451	$	241,373	$	26,435	$	284,809	$	26,886
Non-GSE certificates & CMOs	17,978		22		141,877		13,279		159,855		13,301
ABS	150,049		665		135,824		12,821		285,873		13,486
Corporate	—		—		95,063		8,422		95,063		8,422
Other	—		—		—		—		—		—








Total available for sale	$	211,463	$	1,138	$	614,137	$	60,957	$	825,600	$	62,095


	December 31, 2024
	Less Than Twelve Months				Twelve Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale:
Traditional securities:
GSE certificates & CMOs	$	50,828	$	881	$	249,736	$	30,346	$	300,564	$	31,227
Non-GSE certificates & CMOs	33,778		71		145,329		15,510		179,107		15,581
ABS	121,444		421		151,668		14,142		273,112		14,563
Corporate	—		—		98,315		11,167		98,315		11,167
Other	—		—		3,865		132		3,865		132








Total available for sale	$	206,050	$	1,373	$	648,913	$	71,297	$	854,963	$	72,670

Available for sale securities

As of March 31, 2025, none of the Company’s available-for-sale debt securities were in an unrealized loss position due to credit quality and therefore no allowance for credit losses on available-for-sale debt securities was required. The temporary impairment of fixed income securities is primarily attributable to changes in overall market interest rates and/or changes in credit/liquidity spreads since the investments were acquired. In general, as market interest rates rise and/or credit/liquidity spreads widen, the fair value of fixed rate securities will decrease, as market interest rates fall and/or credit spreads tighten, the fair value of fixed rate securities will increase.

With respect to the Company’s security investments that are temporarily impaired as of March 31, 2025, management does not intend to sell these investments and does not believe it will be necessary to do so before anticipated recovery. If either criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. The Company expects to collect all amounts due according to the contractual terms of these investments. Therefore, the Company does not hold an allowance for credit losses for available for sale securities at March 31, 2025.

Held-to-maturity securities

Management conducts an evaluation of expected credit losses on held-to-maturity securities on a collective basis by security type. Management monitors the credit quality of debt securities held-to-maturity through reasonable and supportable forecasts, reviews of credit trends on underlying assets, credit ratings, and other factors. Holdings of securities issued by GSEs with unrealized


Notes to Consolidated Financial Statements (unaudited)

losses are either explicitly or implicitly guaranteed by the U.S. government, and are highly rated by major rating agencies and have a long history of no credit losses.

With the exception of PACE assessments, which are generally not rated, these securities were rated investment grade by at least one nationally recognized statistical rating organization with only $11 million rated below investment grade. All issues were current as to their interest payments. There have been no significant losses on PACE assessments that we have invested in given the low loan-to-value position and the superior lien position on the property. Management considers that the temporary impairment of these investments as of March 31, 2025 is primarily due to an increase in interest rates and spreads since the time these investments were purchased.

Accrued interest receivable on securities totaling $31.2 million and $38.7 million at March 31, 2025 and December 31, 2024, respectively, was included in other assets in the consolidated balance sheet and excluded from the amortized cost and estimated fair value totals in the table above.

The following table presents the activity in the allowance for credit losses for securities held-to-maturity for the three months ended March 31, 2025:


(In thousands)	Non-GSE commercial certificates		Commercial PACE		Residential PACE		Total
Allowance for credit losses:
Beginning balance	$	49	$	268	$	387	$	704
Provision for (recovery of) credit losses	(2)		3		(4)		(3)
Charge-offs	—		—		—		—
Recoveries	—		—		—		—
Ending balance	$	47	$	271	$	383	$	701

The following table presents the activity in the allowance for credit losses for securities held-to-maturity for the three months ended March 31, 2024:


(In thousands)	Non-GSE commercial certificates		Commercial PACE		Residential PACE		Total
Allowance for credit losses:
Beginning balance	$	54	$	258	$	409	$	721
Recovery of credit losses	(1)		(2)		(8)		(11)
Charge-offs	—		—		—		—
Recoveries	—		—		—		—
Ending balance	$	53	$	256	$	401	$	710


Notes to Consolidated Financial Statements (unaudited)

4. LOANS RECEIVABLE, NET

Loans receivable are summarized as follows:





	March 31, 2025		December 31, 2024
(In thousands)
Commercial and industrial	$	1,183,297	$	1,175,490
Multifamily	1,371,950		1,351,604
Commercial real estate	409,004		411,387
Construction and land development	20,690		20,683
Total commercial portfolio	2,984,941		2,959,164
Residential real estate lending	1,303,856		1,313,617
Consumer solar	356,601		365,516
Consumer and other	32,108		34,627
Total retail portfolio	1,692,565		1,713,760
Total loans receivable	4,677,506		4,672,924


Allowance for credit losses	(57,676)		(60,086)
Total loans receivable, net	$	4,619,830	$	4,612,838

Included in commercial and industrial loans are government guaranteed loans with a balance of $197.7 million at March 31, 2025 and $198.5 million at December 31, 2024. Due to these loans being fully guaranteed by the United States government, no allowance for credit losses is recorded in relation to these loans at March 31, 2025 and December 31, 2024.

The following table presents information regarding the past due status of the Company’s loans as of March 31, 2025:



	30-59 Days Past Due		60-89 Days Past Due		Non- Accrual		90 Days or More Delinquent and Still Accruing Interest		Total Past Due and Non-Accrual		Current		Total Loans Receivable
(In thousands)
Commercial and industrial	$	564	$	—	$	12,786	$	—	$	13,350	$	1,169,947	$	1,183,297
Multifamily	27,209		2,774		—		—		29,983		1,341,967		1,371,950
Commercial real estate	5,151		—		3,979		—		9,130		399,874		409,004
Construction and land development	4,385		—		11,107		—		15,492		5,198		20,690
Total commercial portfolio	37,309		2,774		27,872		—		67,955		2,916,986		2,984,941
Residential real estate lending	7,250		792		1,375		—		9,417		1,294,439		1,303,856


Consumer solar	3,038		1,859		3,479		—		8,376		348,225		356,601
Consumer and other	539		377		218		—		1,134		30,974		32,108
Total retail portfolio	10,827		3,028		5,072		—		18,927		1,673,638		1,692,565
	$	48,136	$	5,802	$	32,944	$	—	$	86,882	$	4,590,624	$	4,677,506

Within the table above, there are three multifamily loans totaling $27.0 million that were in the process of being refinanced at March 31, 2025, and have been included as 30-89 days past due as they were past the maturity date. Two loans were subsequently extended, and one loan was refinanced which is performing in accordance with the updated terms.


Notes to Consolidated Financial Statements (unaudited)

The following table presents information regarding the past due status of the Company’s loans as of December 31, 2024:









	30-59 Days Past Due		60-89 Days Past Due		Non- Accrual		90 Days or More Delinquent and Still Accruing Interest		Total Past Due and Non-Accrual		Current		Total Loans Receivable
Commercial and industrial	$	659	$	189	$	872	$	—	$	1,720	$	1,173,770	$	1,175,490
Multifamily	8,172		—		—		—		8,172		1,343,432		1,351,604
Commercial real estate	—		1,280		4,062		—		5,342		406,045		411,387
Construction and land development	—		—		11,107		—		11,107		9,576		20,683
Total commercial portfolio	8,831		1,469		16,041		—		26,341		2,932,823		2,959,164
Residential real estate lending	5,960		202		1,771		—		7,933		1,305,684		1,313,617


Consumer solar	378		445		2,827		—		3,650		361,866		365,516
Consumer and other	2,487		2,282		370		—		5,139		29,488		34,627
Total retail portfolio	8,825		2,929		4,968		—		16,722		1,697,038		1,713,760
	$	17,656	$	4,398	$	21,009	$	—	$	43,063	$	4,629,861	$	4,672,924

Within the table above is an $8.2 million multifamily loan that was in the process of being refinanced at December 31, 2024, and has been included as 30-89 days past due as it was past the maturity date. This loan was subsequently refinanced and is performing in accordance with the updated terms.

The following table presents information regarding loan modifications granted to borrowers experiencing financial difficulty during the three months ended March 31, 2025:



	Three Months Ended March 31, 2025
(Dollars in thousands)	Term Extension		% of Portfolio
Commercial and industrial	$	3,026	0.3	%



Total	$	3,026

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025.


						Three Months Ended March 31, 2025
						Weighted Average Years of Term Extension
Commercial and industrial						0.2

There were no loan modifications granted to borrowers experiencing financial difficulty during the three months ended March 31, 2024.

In the prior twelve months, seven loan modifications were made to borrowers experiencing financial difficulty.One C&I loan of $0.4 million that was modified during this period had a payment default during the three months ended March 31, 2025.


Notes to Consolidated Financial Statements (unaudited)

In order to manage credit quality, we view the Company’s loan portfolio by various segments. For commercial loans, we assign individual credit ratings ranging from 1 (lowest risk) to 10 (highest risk) as an indicator of credit quality. These ratings are based on specific risk factors including 1 (lowest risk) to 10 (highest risk) as an indicator of credit quality. These ratings are based on specific risk factors including (i) historical and projected financial results of the borrower, (ii) market conditions of the borrower’s industry that may affect the borrower’s future financial performance, (iii) business experience of the borrower’s management, (iv) nature of the underlying collateral, if any, including the ability of the collateral to generate sources of repayment, and (v) history of the borrower’s payment performance. These specific risk factors are then utilized as inputs in our credit model to determine the associated allowance for credit loss. Non-rated loans generally include residential mortgages and consumer loans.

The below classifications follow regulatory guidelines and can be generally described as follows:

•pass loans are of satisfactory quality (risk rating 1 through 6);

•special mention loans have a potential weakness or risk that may result in the deterioration of future repayment (risk rating 7);

•substandard loans are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged (these loans have a well-defined weakness, and there is a distinct possibility that the Company will sustain some loss) (risk rating 8 and 9); and

•doubtful loans, based on existing circumstances, have weaknesses that make collection or liquidation in full highly questionable and improbable (risk rating 10).

In addition, residential loans are classified utilizing an inter-agency methodology that incorporates the extent of delinquency. Assigned risk rating grades are continuously updated as new information is obtained.

The following tables summarize the Company’s loan portfolio by credit quality indicator as of March 31, 2025:


	Term Loans by Origination Year
(In thousands)	2025		2024		2023		2022		2021 & Prior		Revolving loans		Revolving Loans Converted to Term		Total
Commercial and industrial:
Pass	$	36,284	$	327,769	$	81,145	$	145,115	$	386,161	$	151,991	$	—	$	1,128,465
Special Mention	128		209		—		13,674		13,748		250		—		28,009
Substandard	—		244		—		5,540		16,335		1,094		—		23,213
Doubtful	—		—		—		—		2,719		891		—		3,610
Total commercial and industrial	$	36,412	$	328,222	$	81,145	$	164,329	$	418,963	$	154,226	$	—	$	1,183,297
Current period gross charge-offs	$	—	$	—	$	748	$	75	$	—	$	—	$	—	$	823
Multifamily:
Pass	$	29,755	$	257,382	$	226,062	$	360,921	$	489,281	$	2	$	—	$	1,363,403
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		8,547		—		—		8,547
Doubtful	—		—		—		—		—		—		—		—
Total multifamily	$	29,755	$	257,382	$	226,062	$	360,921	$	497,828	$	2	$	—	$	1,371,950
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate:
Pass	$	139	$	99,746	$	41,652	$	40,986	$	216,321	$	6,181	$	—	$	405,025
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		3,979		—		—		3,979
Doubtful	—		—		—		—		—		—		—		—
Total commercial real estate	$	139	$	99,746	$	41,652	$	40,986	$	220,300	$	6,181	$	—	$	409,004
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


Notes to Consolidated Financial Statements (unaudited)


Construction and land development:
Pass	$	—	$	—	$	—	$	—	$	4,385	$	5,199	$	—	$	9,584
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		11,106		—		11,106
Doubtful	—		—		—		—		—		—		—		—
Total construction and land development	$	—	$	—	$	—	$	—	$	4,385	$	16,305	$	—	$	20,690
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate lending:
Pass	$	9,814	$	72,076	$	126,876	$	384,760	$	708,955	$	—	$	—	$	1,302,481
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		1,231		144		—		—		1,375
Doubtful	—		—		—		—		—		—		—		—
Total residential real estate lending	$	9,814	$	72,076	$	126,876	$	385,991	$	709,099	$	—	$	—	$	1,303,856
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	69	$	—	$	—	$	69
Consumer solar:
Pass	$	98	$	85	$	24,345	$	91,862	$	237,074	$	—	$	—	$	353,464
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		82		1,087		1,968		—		—		3,137
Doubtful	—		—		—		—		—		—		—		—
Total consumer solar	$	98	$	85	$	24,427	$	92,949	$	239,042	$	—	$	—	$	356,601
Current period gross charge-offs	$	—	$	—	$	112	$	385	$	1,477	$	—	$	—	$	1,974
Consumer and other:
Pass	$	81	$	—	$	1,763	$	11,748	$	18,299	$	—	$	—	$	31,891
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		131		86		—		—		217
Doubtful	—		—		—		—		—		—		—		—
Total consumer and other	$	81	$	—	$	1,763	$	11,879	$	18,385	$	—	$	—	$	32,108
Current period gross charge-offs	$	—	$	—	$	1	$	—	$	110	$	—	$	—	$	111
Total Loans:
Pass	$	76,171	$	757,058	$	501,843	$	1,035,392	$	2,060,476	$	163,373	$	—	$	4,594,313
Special Mention	128		209		—		13,674		13,748		250		—		28,009
Substandard	—		244		82		7,989		31,059		12,200		—		51,574
Doubtful	—		—		—		—		2,719		891		—		3,610
Total loans	$	76,299	$	757,511	$	501,925	$	1,057,055	$	2,108,002	$	176,714	$	—	$	4,677,506
Current period gross charge-offs	$	—	$	—	$	861	$	460	$	1,656	$	—	$	—	$	2,977

The following tables summarize the Company’s loan portfolio by credit quality indicator as of December 31, 2024:


	Term Loans by Origination Year
(In thousands)	2024		2023		2022		2021		2020 & Prior		Revolving loans		Revolving Loans Converted to Term		Total
Commercial and industrial:
Pass	$	331,879	$	82,769	$	146,475	$	178,107	$	218,078	$	155,917	$	—	$	1,113,225
Special Mention	137		—		13,816		9,756		—		1,905		—		25,614
Substandard	115		—		5,531		15,805		13,403		1,797		—		36,651
Doubtful	—		—		—		—		—		—		—		—
Total commercial and industrial	$	332,131	$	82,769	$	165,822	$	203,668	$	231,481	$	159,619	$	—	$	1,175,490
Current period gross charge-offs	$	200	$	1,738	$	653	$	—	$	5,553	$	—	$	—	$	8,144


Notes to Consolidated Financial Statements (unaudited)


Multifamily:
Pass	$	258,985	$	226,552	$	362,091	$	43,413	$	451,981	$	2	$	—	$	1,343,024
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		8,580		—		—		8,580
Doubtful	—		—		—		—		—		—		—		—
Total multifamily	$	258,985	$	226,552	$	362,091	$	43,413	$	460,561	$	2	$	—	$	1,351,604
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	510	$	—	$	—	$	510
Commercial real estate:
Pass	$	100,289	$	41,791	$	41,266	$	46,847	$	170,931	$	6,201	$	—	$	407,325
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		4,062		—		—		4,062
Doubtful	—		—		—		—		—		—		—		—
Total commercial real estate	$	100,289	$	41,791	$	41,266	$	46,847	$	174,993	$	6,201	$	—	$	411,387
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Construction and land development:
Pass	$	—	$	—	$	—	$	—	$	4,380	$	5,199	$	—	$	9,579
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		11,104		—		11,104
Doubtful	—		—		—		—		—		—		—		—
Total construction and land development	$	—	$	—	$	—	$	—	$	4,380	$	16,303	$	—	$	20,683
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential real estate lending:
Pass	$	73,206	$	128,537	$	382,888	$	282,873	$	444,507	$	—	$	—	$	1,312,011
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		1,491		—		115		—		—		1,606
Doubtful	—		—		—		—		—		—		—		—
Total residential real estate lending	$	73,206	$	128,537	$	384,379	$	282,873	$	444,622	$	—	$	—	$	1,313,617
Current period gross charge-offs	$	—	$	27	$	—	$	—	$	1,155	$	—	$	—	$	1,182
Consumer solar:
Pass	$	—	$	25,313	$	94,240	$	119,279	$	124,095	$	—	$	—	$	362,927
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		99		631		911		948		—		—		2,589
Doubtful	—		—		—		—		—		—		—		—
Total consumer solar	$	—	$	25,412	$	94,871	$	120,190	$	125,043	$	—	$	—	$	365,516
Current period gross charge-offs	$	—	$	65	$	2,285	$	3,343	$	2,001	$	—	$	—	$	7,694
Consumer and other:
Pass	$	402	$	1,907	$	12,512	$	10,181	$	9,153	$	—	$	—	$	34,155
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		1		83		287		101		—		—		472
Doubtful	—		—		—		—		—		—		—		—
Total consumer and other	$	402	$	1,908	$	12,595	$	10,468	$	9,254	$	—	$	—	$	34,627
Current period gross charge-offs	$	—	$	16	$	—	$	—	$	304	$	—	$	—	$	320
Total Loans:
Pass	$	764,761	$	506,869	$	1,039,472	$	680,700	$	1,423,125	$	167,319	$	—	$	4,582,246
Special Mention	137		—		13,816		9,756		—		1,905		—		25,614
Substandard	115		100		7,736		17,003		27,209		12,901		—		65,064
Doubtful	—		—		—		—		—		—		—		—
Total loans	$	765,013	$	506,969	$	1,061,024	$	707,459	$	1,450,334	$	182,125	$	—	$	4,672,924
Current period gross charge-offs	$	200	$	1,846	$	2,938	$	3,343	$	9,523	$	—	$	—	$	17,850


Notes to Consolidated Financial Statements (unaudited)

The activities in the allowance by portfolio for the three months ended March 31, 2025 are as follows:


(In thousands)	Commercial and Industrial		Multifamily		Commercial Real Estate		Construction and Land Development		Residential Real Estate Lending		Consumer Solar		Consumer and Other		Total
Allowance for credit losses:


Beginning balance - ACL	$	13,505	$	2,794	$	1,600	$	1,253	$	9,493	$	29,095	$	2,346	$	60,086
Provision for (recovery of) credit losses	2,630		357		(11)		(1)		39		(2,382)		(466)		166
Charge-offs	(823)		—		—		—		(69)		(1,974)		(111)		(2,977)
Recoveries	10		—		—		—		75		266		50		401
Ending balance - ACL	$	15,322	$	3,151	$	1,589	$	1,252	$	9,538	$	25,005	$	1,819	$	57,676

The activities in the allowance by portfolio for the three months ended March 31, 2024 are as follows:


(In thousands)	Commercial and Industrial		Multifamily		Commercial Real Estate		Construction and Land Development		Residential Real Estate Lending		Consumer Solar		Consumer and Other		Total
Allowance for credit losses:
Beginning balance - ACL	$	18,331	$	2,133	$	1,276	$	24	$	13,273	$	27,978	$	2,676	$	65,691


Provision for (recovery of) credit losses	(1,938)		2,315		129		829		(853)		482		(74)		890
Charge-offs	(400)		—		—		—		(160)		(1,806)		(96)		(2,462)
Recoveries	4		—		—		—		147		121		9		281
Ending Balance - ACL	$	15,997	$	4,448	$	1,405	$	853	$	12,407	$	26,775	$	2,515	$	64,400

The amortized cost basis of loans on nonaccrual status and the specific allowance as of March 31, 2025 are as follows:


	Nonaccrual with No Allowance		Nonaccrual with Allowance		Reserve
(In thousands)
Commercial and industrial	$	8,331	$	4,455	$	3,603

Commercial real estate	3,979		—		—
Construction and land development	8,803		2,304		1,252
Total commercial portfolio	$	21,113	$	6,759	$	4,855
Residential real estate lending	1,375		—		—


Consumer solar	3,479		—		—
Consumer and other	218		—		—
Total retail portfolio	5,072		—		—
	$	26,185	$	6,759	$	4,855


Notes to Consolidated Financial Statements (unaudited)

The amortized cost basis of loans on nonaccrual status and the specific allowance as of December 31, 2024 are as follows:


	Nonaccrual with No Allowance		Nonaccrual with Allowance		Reserve
(In thousands)
Commercial and industrial	$	—	$	872	$	731

Commercial real estate	4,062		—		—
Construction and land development	8,803		2,304		1,252
Total commercial portfolio	$	12,865	$	3,176	$	1,983
Residential real estate lending	1,771		—		—


Consumer solar	2,827		—		—
Consumer and other	370		—		—
Total retail portfolio	4,968		—		—
	$	17,833	$	3,176	$	1,983

The below table summarizes collateral dependent loans which were individually evaluated to determine expected credit losses as of March 31, 2025:


	Real Estate Collateral Dependent		Associated Allowance for Credit Losses
(In thousands)


Commercial real estate	$	3,979	$	—
Construction and land development	16,305		1,252







	$	20,284	$	1,252

The below table summarizes collateral dependent loans which were individually evaluated to determine expected credit losses as of December 31, 2024:


	Real Estate Collateral Dependent		Associated Allowance for Credit Losses
(In thousands)


Commercial real estate	$	4,062	$	—
Construction and land development	16,302		1,252







	$	20,364	$	1,252

As of March 31, 2025 and December 31, 2024, mortgage loans with an unpaid principal balance of $2.45 billion and $2.45 billion, respectively, were pledged to the FHLBNY to secure outstanding advances and letters of credit.

The Company had $1.8 million and $1.9 million of loans to related parties and affiliates as of March 31, 2025 and December 31, 2024, respectively.

As of March 31, 2025 and December 31, 2024, Loans Held for Sale ("LHFS") on the Consolidated Statements of Financial Condition was $3.7 million and $37.6 million, respectively. Included in LHFS were certain non-performing loans of $1.0 million and $4.9 million as of March 31, 2025 and December 31, 2024, respectively. In addition, at December 31, 2024, there was a pool of $36.6 million residential loans in LHFS that were sold in the quarter ended March 31, 2025.


Notes to Consolidated Financial Statements (unaudited)

5. DEPOSITS

Deposits are summarized as follows:





	March 31, 2025				December 31, 2024
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
(In thousands)
Non-interest-bearing demand deposit accounts	$	2,895,757	0.00	%	$	2,868,506	0.00	%
NOW accounts	187,078		0.72	%	179,765		0.72	%
Money market deposit accounts	3,772,423		2.73	%	3,564,423		2.67	%
Savings accounts	330,410		1.28	%	328,696		1.32	%
Time deposits	226,404		3.52	%	239,215		3.54	%

Total deposits	$	7,412,072	1.57	%	$	7,180,605	1.52	%

The scheduled maturities of time deposits as of March 31, 2025 are as follows:


(In thousands)	Balance
2025	$	185,796
2026	35,706
2027	2,668
2028	574
2029	1,487
Thereafter	173
Total	$	226,404

Time deposits greater than $250,000 totaled $52.7 million as of March 31, 2025 and $48.5 million as of December 31, 2024.

From time to time the Company will issue time deposits through the Certificate of Deposit Account Registry Service (“CDARS”) for the purpose of providing Federal Deposit Insurance Corporation ("FDIC") insurance to bank customers with balances in excess of FDIC insurance limits. CDARS deposits totaled approximately $87.6 million and $104.9 million as of March 31, 2025 and December 31, 2024, respectively, and are included in Time deposits above.

Our total deposits included deposits from Workers United and its related entities, a related party, in the amounts of $68.1 million as of March 31, 2025 and $71.2 million as of December 31, 2024.

Included in total deposits are state and municipal deposits totaling $60.6 million and $62.6 million as of March 31, 2025 and December 31, 2024, respectively. Such deposits are secured by letters of credit issued by the FHLBNY or by securities pledged with the FHLBNY.


Notes to Consolidated Financial Statements (unaudited)

6. BORROWINGS

Subordinated Debt

On November 8, 2021, the Company completed a public offering of $85.0 million of aggregated principal amount of 3.25% Fixed-to-Floating Rate subordinated notes due 2031 (the "Notes"). The fixed rate period is defined from and including November 8, 2021 to, but excluding, November 15, 2026, or the date of earlier redemption. The floating rate period is defined from and including November 15, 2026 to, but excluding, November 15, 2031, or the date of earlier redemption. The floating rate per annum is equal to three-month term Secured Overnight Financing Rate ("SOFR") (the "benchmark rate") plus a spread of 230 basis points for each quarterly interest period during the floating rate period, provided however, that if the benchmark rate is less than zero, the benchmark rate shall be deemed to be zero. The subordinated notes will mature on November 15, 2031.

The Company may, at its option, beginning with the interest payment date of November 15, 2026, and on any interest payment date thereafter, redeem the Notes, in whole or in part, from time to time, subject to obtaining prior approval of the Board of Governors of the Federal Reserve System (the "Federal Reserve Board") to the extent such approval is then required under the capital adequacy rules of the Federal Reserve Board, at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest to, but excluding, the date of redemption.

As of March 31, 2025 and December 31, 2024, the subordinated debt was $63.7 million. Interest expense on subordinated debt for the three months ended March 31, 2025 and 2024 was $0.5 million and $0.6 million, respectively.

During the three months ended March 31, 2025 and 2024 the Company did not repurchase any subordinated notes.

FHLBNY Advances and Other Borrowings

FHLBNY advances are collateralized by the FHLBNY stock owned by the Bank plus a pledge of other eligible assets comprised of securities and mortgage loans. Assets are pledged to collateral capacity. As of March 31, 2025, the value of the other eligible assets had an estimated market value net of haircut totaling $2.04 billion (comprised of securities of $403.9 million and mortgage loans of $1.64 billion). As of December 31, 2024, the value of the other eligible assets had an estimated market value net of haircut totaling $2.04 billion (comprised of securities of $379.6 million and mortgage loans of $1.66 billion). The fair value of assets pledged to the FHLBNY is required to be not less than 110% of the outstanding advances. There were $6.0 million outstanding FHLB advances as of March 31, 2025 and $250.7 million in outstanding FHLBNY advances as of December 31, 2024. As of March 31, 2025 and December 31, 2024, we had $6.0 million and $10.7 million, respectively, of FHLBNY advances due in October 2025 through the 0% Development Advance Program that provides members with subsidized funding in the form of interest rate credits to assist in originating loans or purchasing loans or investments that meet one of the eligibility criteria. The Company pledged PACE assessments which qualified under the Climate Development Advance and therefore will receive interest rate credits and will not incur any interest expense related to the current outstanding advances. For the three months ended March 31, 2025 and 2024, interest expense on FHLBNY advances was $0.6 million and zero, respectively.

In addition to FHLBNY advances, the Company uses other borrowings for short-term borrowing needs. Federal funds lines of credit are extended to the Company by non-affiliated banks with which a correspondent banking relationship exists. At March 31, 2025, and December 31, 2024 there were no outstanding balances related to federal funds purchased. In addition, following the bank failures in 2023, the Federal Reserve created a new Bank Term Funding Program ("BTFP") as an additional source of liquidity against high-quality securities, offering loans of up to one year to eligible institutions pledging qualifying assets as collateral. At March 31, 2024, there was an outstanding borrowings balance of $60.0 million related to the BTFP due in 2024 with a weighted average rate of 4.71%. Interest expense related to these borrowings was $2.4 million for the three months ended March 31, 2024. On March 11, 2024, BTFP ceased extending new borrowings, and as such, there was no outstanding borrowings for the three months ended March 31, 2025.


Notes to Consolidated Financial Statements (unaudited)

7. EARNINGS PER SHARE

Under the two-class method, earnings available to common stockholders for the period are allocated between common stockholders and participating securities according to participation rights in undistributed earnings. Our unvested restricted stock units are not considered participating securities as they do not receive dividend distributions until satisfaction of the related vesting requirements. For the three months ended March 31, 2025 and March 31, 2024, we had 31,563 and 21,340 anti-dilutive shares, respectively.

Following is a table setting forth the factors used in the earnings per share computation follow:



	Three Months Ended March 31,
	2025		2024
(In thousands, except per share amounts)
Net income attributable to Amalgamated Financial Corp.	$	25,028	$	27,249
Dividends paid on preferred stock	—		—
Income attributable to common stock	$	25,028	$	27,249
Weighted average common shares outstanding, basic	30,682		30,476
Basic earnings per common share	$	0.82	$	0.89

Income attributable to common stock	$	25,028	$	27,249
Weighted average common shares outstanding, basic	30,682		30,476
Incremental shares from assumed conversion of options and RSUs	264		261
Weighted average common shares outstanding, diluted	30,946		30,737
Diluted earnings per common share	$	0.81	$	0.89


Notes to Consolidated Financial Statements (unaudited)

8. EMPLOYEE BENEFIT PLANS

The Amalgamated Financial Corp. 2021 Equity Incentive Plan (the “Equity Plan”) provides for the grant of stock-based incentive awards to employees and directors of the Company. The number of shares of common stock of the Company available for stock-based awards in the Equity Plan is 1,300,000 of which 654,218 shares were available for issuance as of March 31, 2025.

Stock Options:

The Company does not currently maintain an active stock option plan that is available for issuing new options. As of December 31, 2020, all options are fully vested and the Company will not incur any further expense related to options.

A summary of the status of the Company’s options as of March 31, 2025 follows:





	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Intrinsic Value (in thousands)
Outstanding, January 1, 2025	106,620	$	13.56	2.0	years
Granted	—	—		—
Forfeited/ Expired	(15,780)	11.00		—
Exercised	(39,880)	14.49		—
Outstanding, March 31, 2025	50,960	13.63		1.7	years	$	771
Vested and Exercisable, March 31, 2025	50,960	$	13.63	1.7	years	$	771

The range of exercise prices is $12.00 to $14.65 per share.

As noted above, there was no compensation cost attributable to the options for the three months ended March 31, 2025 or for the three months ended March 31, 2024 as all options had been fully expensed as of December 31, 2020. The fair value of all awards outstanding as of March 31, 2025 and December 31, 2024 was $0.8 million and $2.1 million, respectively. No cash was received for options exercised in the three months ended March 31, 2025 or for the three months ended March 31, 2024.

The Company repurchased 22,273 shares and 17,460 shares for options exercised in the three months ended March 31, 2025 and March 31, 2024, respectively.

Time-Based Restricted Stock Units:

Restricted stock units ("RSUs") represent an obligation to deliver shares to an employee or director at a future date if certain vesting conditions are met. These awards are subject to a time-based vesting schedule and are settled in shares of the Company’s common stock. These awards do not provide dividend equivalent rights from the date of grant and do not provide voting rights. Unvested awards accrue dividends based on dividends paid on common shares, but those dividends are paid in cash upon satisfaction of the specified vesting requirements on the underlying award.


Notes to Consolidated Financial Statements (unaudited)

A summary of the status of the Company’s time-based vesting RSUs for the three months ended March 31, 2025 is as follows:


	Shares	Grant Date Fair Value
Unvested, January 1, 2025	297,817	$	22.90
Awarded	90,927	36.40
Forfeited/Expired	(944)	23.42
Vested	(88,117)	21.64
Unvested and Expected to Vest, March 31, 2025	299,683	$	27.37

As of March 31, 2025, there was $8.6 million of total unrecognized compensation cost related to the non-vested RSUs. The weighted average period to recognize unrecognized compensation is 1.2 years. The Company repurchased 61,408 shares and 30,183 shares for RSUs vested during the three months ended March 31, 2025 and 2024, respectively.

Performance-Based Restricted Stock Units:

Performance-based restricted stock units ("PSUs") represent an obligation to deliver shares to an employee at a future date if certain vesting conditions are met. These awards are subject to the satisfaction of performance conditions or the satisfaction of market conditions, and are settled in shares of the Company’s common stock. These awards do not provide dividend equivalent rights from the date of grant and do not provide voting rights. Unvested awards accrue dividends based on dividends paid on common shares, but those dividends are paid in cash upon satisfaction of the specified vesting requirements on the underlying award. PSUs are granted at target shares. The minimum and maximum awards that are achievable are 0% and 150%, respectively, of the target shares granted.

A summary of the status of the Company’s performance-based vesting PSUs for the three months ended March 31, 2025 is as follows:


	Shares	Grant Date Fair Value
Unvested, January 1, 2025	242,240	$	21.83
Performance Addition	25,418	8.84
Awarded	59,415	36.78
Forfeited/Expired	—	—
Vested	(76,245)	17.71
Unvested and Expected to Vest, March 31, 2025	250,828	$	26.20

As of March 31, 2025, the Company reserved an additional 125,414 shares for issuance upon vesting of PSUs assuming the Company achieves the maximum share payout.

As of March 31, 2025, there was $7.2 million of total unrecognized compensation cost related to the non-vested PSUs. The weighted average period to recognize unrecognized compensation is 1.8 years.

During the three months ended March 31, 2025, the Company awarded 25,418 additional shares related to the performance achievement of corporate goals above target at a weighted average fair value of $8.84 per share. Included in these awards was 12,851 shares with a grant date fair market value of $17.48, and 12,567 shares that were based on market-conditions in which the achievement of the goal did not result in additional expense to the Company. Compensation expense attributable to the vesting of the performance shares was $0.2 million.

During the three months ended March 31, 2025, the Company granted 59,415 PSUs at target achievement of the Company's corporate goals at a weighted average fair value of $36.78 per share which vest subject to the achievement of the Company’s corporate goals. The corporate goals are based on the achievement of a target increase in Tangible Book Value, adjusted for certain factors, and the Company's relative total shareholder return compared to a group of peer banks.


Notes to Consolidated Financial Statements (unaudited)

Deferred Restricted Stock Units:

The Bonus Deferral And Stock Purchase Plan ("BDSPP") provides for a bonus deferral opportunity with matching benefits to certain executives. Under the BDSPP, deferred restricted stock units ("DSUs") represent an obligation to deliver shares to an employee at a future date if certain vesting conditions are met. The plan allows for participating executives to defer up to 100% of their annual incentive plan bonus in the form of deferred restricted stock units ("DSUs") which will convert to shares issuable upon the earliest to occur of the executive’s separation from service (including death), a change of control or a qualifying financial emergency. The Company will match 100% up to 35% of any deferred bonus, in the form of additional DSUs credited to participants' plan accounts. These awards do not provide dividend equivalent rights from the date of grant and do not provide voting rights.

A summary of the status of the Company’s DSUs for the three months ended March 31, 2025 is as follows:


	Shares	Grant Date Fair Value
Unvested, January 1, 2025	—	$	—
Deferred bonus	16,304	—
Employer match	16,304	29.87
Forfeited/Expired	—	—
Vested	(16,304)	29.87
Unvested and Expected to Vest, March 31, 2025	16,304	$	29.87

As of March 31, 2025, there was $0.5 million of total unrecognized compensation cost related to the non-vested DSUs. The weighted average period to recognize unrecognized compensation is 1.4 years.

Compensation expense attributable to employee RSUs, PSUs, and DSUs was $1.3 million for the three months ended March 31, 2025, and $1.0 million for the three months ended March 31, 2024. Compensation expense attributable to director RSUs was $0.1 million and $0.1 million for the three months ended March 31, 2025 and 2024, respectively.

Employee Stock Purchase Plan

On April 28, 2021, the Company's stockholders approved the Amalgamated Financial Corp. Employee Stock Purchase Plan (the "ESPP") which was implemented on March 2, 2022. The aggregate number of shares of common stock that may be purchased and issued under the ESPP will not exceed 500,000 of previously authorized shares. Under the terms of the ESPP, employees may authorize the withholding of up to 15% of their eligible compensation to purchase the Company's shares of common stock, not to exceed $25,000 of the fair market value of such common stock for any calendar year. The purchase price per shares acquired under the ESPP will never be less than 85% of the fair market value of the Company's common stock on the last day of the offering period. The Company's Board of Directors in its discretion may terminate the ESPP at any time with respect to any shares for which options have not been granted.

The Compensation Committee of the Board of Directors (the "Committee") has the right to amend the ESPP without the approval of our stockholders; provided, that no such change may impair the rights of a participant with respect to any outstanding offering period without the consent of such participant, other than a change determined by the Committee to be necessary to comply with applicable law. A participant may not dispose of shares acquired under the ESPP until six months following the grant date of such shares, or any earlier date as of which the Committee has determined that the participant would qualify for a hardship distribution from the Company’s 401(k) Plan. Accordingly, the fair value award associated with their discounted purchase price is expensed at the time of purchase. As of March 31, 2025, there were 387,731 shares available for the purchase under ESPP. The expense related to the discount on purchased shares for the three months ended March 31, 2025 and March 31, 2024 was $41 thousand and $37 thousand, respectively, and is recorded within compensation and employee benefits expense on the Consolidated Statements of Income.


Notes to Consolidated Financial Statements (unaudited)

9. FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assumptions are developed based on prioritizing information within a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. A description of the disclosure hierarchy and the types of financial instruments recorded at fair value that management believes would generally qualify for each category are as follows:

Level 1 - Valuations are based on quoted prices in active markets for identical assets or liabilities. Accordingly, valuation of these assets and liabilities does not entail a significant degree of judgment. Examples include most U.S. Government securities and exchange-traded equity securities.

Level 2 - Valuations are based on either quoted prices in markets that are not considered to be active or significant inputs to the methodology that are observable, either directly or indirectly. Financial instruments in this level would generally include mortgage-related securities and other debt issued by GSEs, non-GSE mortgage-related securities, corporate debt, certain redeemable fund investments and certain trust preferred securities.

Level 3 - Valuations are based on inputs to the methodology that are unobservable and significant to the fair value measurement. These inputs reflect management’s own judgments about the assumptions that market participants would use in pricing the assets and liabilities.

Assets Measured at Fair Value on a Recurring Basis

Available for sale securities

The Company’s available for sale securities are reported at fair value. Investments in fixed income securities are generally valued based on evaluations provided by an independent pricing service. These evaluations represent an exit price or their opinion as to what a buyer would pay for a security, typically in an institutional round lot position, in a current sale. The pricing service utilizes evaluated pricing techniques that vary by asset class and incorporate available market information and, because many fixed income securities do not trade on a daily basis, applies available information through processes such as benchmark curves, benchmarking of available securities, sector groupings and matrix pricing. Model processes, such as option adjusted spread models, are used to value securities that have prepayment features. In those limited cases where pricing service evaluations are not available for a fixed income security, management will typically value those instruments using observable market inputs in a discounted cash flow analysis.

Derivatives

Derivatives represent interest rate option contracts and interest rate swaps and estimated fair values are based on valuation models using observable market data as of the measurement date.


Notes to Consolidated Financial Statements (unaudited)

The following summarizes those financial instruments measured at fair value on a recurring basis in the Consolidated Statements of Financial Condition as of the dates indicated, categorized by the relevant class of investment and level of the fair value hierarchy:


	March 31, 2025
(In thousands)	Level 1		Level 2		Level 3		Total
Financial Assets:
Available for sale securities:
Traditional securities:
GSE certificates & CMOs	$	—	$	527,989	$	—	$	527,989
Non-GSE certificates & CMOs	—		244,079		—		244,079
ABS	—		671,036		—		671,036
Corporate	—		95,063		—		95,063
Other	200		7,760		—		7,960

PACE assessments:
Residential PACE assessments	—		—		161,147		161,147
Other assets - Cash flow hedges	—		2,103		—		2,103


Total assets carried at fair value	$	200	$	1,548,030	$	161,147	$	1,709,377


	December 31, 2024
(In thousands)	Level 1		Level 2		Level 3		Total
Financial Assets:
Available for sale securities:
Traditional securities:
GSE certificates & CMOs	$	—	$	508,158	$	—	$	508,158
Non-GSE certificates & CMOs	—		214,175		—		214,175
ABS	—		652,334		—		652,334
Corporate	—		98,315		—		98,315
Other	200		3,865		—		4,065
PACE assessments:
Residential PACE assessments	—		—		152,011		152,011
Other assets - Cash flow hedges	—		2,168		—		2,168





Total assets carried at fair value	$	200	$	1,479,015	$	152,011	$	1,631,226


Notes to Consolidated Financial Statements (unaudited)

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2025 and March 31, 2024:


	Residential PACE Assessments
	March 31, 2025		March 31, 2024
(In thousands)
Balance of recurring Level 3 assets at January 1	$	152,011	$	53,303
Amortization included in interest income	(119)		261
Change in unrealized holding gains/losses included in other comprehensive income	2,436		536
Purchases	11,291		34,879
Sales	—		(6,284)
Principal paydowns	(4,472)		(437)

Balance of recurring Level 3 assets at March 31	$	161,147	$	82,258

The fair value of the Company's PACE assessments are determined internally by calculating discounted cash flows using expected conditional prepayment rates, market spreads, and the Treasury yield curve. Qualitative assessments from recent commentary from dealers or investors or issuers, information revealed from secondary market trades of clean energy senior asset-backed securities, and volatility in the marketplace are reviewed and incorporated into the calculations.

The following table presents quantitative information about recurring Level 3 fair value measurements at March 31, 2025 and December 31, 2024:


	March 31, 2025
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
(In thousands)
Residential PACE assessments	$	161,147	Discounted cash flow	Conditional prepayment rate	7.0%-26.0% (19.7%)

	December 31, 2024
	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
(In thousands)
Residential PACE assessments	$	152,011	Discounted cash flow	Conditional prepayment rate	7.0%-25.0% (18.9%)

Assets Measured at Fair Value on a Non-recurring Basis

Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis. That is, they are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a non-recurring basis include certain individually evaluated loans (or impaired loans prior to the adoption of ASU 2016-13) reported at the fair value of the underlying collateral if repayment is expected solely from the collateral.


Notes to Consolidated Financial Statements (unaudited)

The following tables summarize assets measured at fair value on a non-recurring basis in the Consolidated Statements of Financial Condition as of the dates indicated, categorized by the relevant class of investment and level of the fair value hierarchy:





	March 31, 2025
(In thousands)	Carrying Value		Level 1		Level 2		Level 3		Estimated Fair Value
Fair Value Measurements:
Individually analyzed loans	$	1,052	$	—	$	—	$	1,052	$	1,052





	December 31, 2024
(In thousands)	Carrying Value		Level 1		Level 2		Level 3		Estimated Fair Value
Fair Value Measurements:
Individually analyzed loans	$	1,052	$	—	$	—	$	1,052	$	1,052


Notes to Consolidated Financial Statements (unaudited)

Financial Instruments Not Measured at Fair Value

For those financial instruments that are not recorded at fair value in the consolidated statements of financial condition, but are measured at fair value for disclosure purposes, management follows the same fair value measurement principles and guidance as for instruments recorded at fair value. For a description of the methods, factors and significant assumptions utilized in estimating the fair values for significant categories of financial instruments not measured at fair value, refer to Note 14, Fair Value of Financial Instruments, included in the Annual Report on Form 10-K for the year ended December 31, 2024.

There are significant limitations in estimating the fair value of financial instruments for which an active market does not exist. Due to the degree of management judgment that is often required, such estimates tend to be subjective, sensitive to changes in assumptions and imprecise. Such estimates are made as of a point in time and are impacted by then-current observable market conditions; also such estimates do not give consideration to transaction costs or tax effects if estimated unrealized gains or losses were to become realized in the future. Because of inherent uncertainties of valuation, the estimated fair value may differ significantly from the value that would have been used had a ready market for the investment existed and the difference could be material. Lastly, consideration is not given to nonfinancial instruments, including various intangible assets, which could represent substantial value. Fair value estimates are not necessarily representative of the Company’s total enterprise value.

The following table summarizes the financial statement basis and estimated fair values for significant categories of financial instruments:







	March 31, 2025
(In thousands)	Carrying Value		Level 1		Level 2		Level 3		Estimated Fair Value

Financial assets:
Cash and cash equivalents	$	65,714	$	65,714	$	—	$	—	$	65,714


Held-to-maturity securities	1,573,117		—		496,622		947,021		1,443,643
Loans held for sale	3,667		—		—		3,667		3,667
Loans receivable, net	4,619,830		—		—		4,421,807		4,421,807

Resell agreements	41,651		—		—		41,651		41,651
Accrued interest receivable	55,092		302		12,142		42,648		55,092




Financial liabilities:
Deposits payable on demand	$	7,185,668	$	—	$	7,185,668	$	—	$	7,185,668
Time deposits	226,404		—		226,117		—		226,117
FHLBNY advances	5,952		—		5,944		—		5,944

Subordinated debt, net	63,724		—		56,874		—		56,874
Accrued interest payable	2,908		—		2,908		—		2,908


Notes to Consolidated Financial Statements (unaudited)


	December 31, 2024
(In thousands)	Carrying Value		Level 1		Level 2		Level 3		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	60,749	$	60,749	$	—	$	—	$	60,749


Held-to-maturity securities	1,586,205		—		499,564		933,156		1,432,720
Loans held for sale	37,593		—		—		37,593		37,593
Loans receivable, net	4,612,838		—		—		4,352,266		4,352,266

Resell agreements	23,741		—		—		23,741		23,741
Accrued interest receivable	61,172		44		11,781		49,347		61,172


Financial liabilities:
Deposits payable on demand	$	6,941,390	$	—	$	6,941,390	$	—	$	6,941,390
Time deposits	239,215		—		238,788		—		238,788
FHLBNY advances	250,706		—		250,709		—		250,709

Subordinated debt, net	63,703		—		57,651		—		57,651
Accrued interest payable	2,356		—		2,356		—		2,356


Notes to Consolidated Financial Statements (unaudited)

10. DERIVATIVES AND HEDGING ACTIVITIES

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts.

The Company’s objectives in using interest rate derivatives are to manage its exposure to interest rate movements and to add stability to net interest income. To accomplish this objective, the Company has entered into interest rate cash flow hedges as part of its interest rate risk management strategy. As of March 31, 2025, the Company had one interest rate swap with a notional value of $100.0 million and two interest rate option contracts with a floor with a notional value of $165.0 million, hedging floating-rate available for sale securities.

Effect of Derivatives on the Consolidated Statements of Financial Condition

All cash flow hedges are recorded gross on the Consolidated Statements of Financial Condition.

The tables below present the outstanding notional balances and the fair value of the Company’s derivative assets as of March 31, 2025 and December 31, 2024.


	March 31, 2025				December 31, 2024
(In thousands)	Notional Amount		Fair Value (Other Assets)		Notional Amount		Fair Value (Other Assets)
Derivatives designated as hedging instruments:
Cash flow hedges - interest rate products	$	265,000	$	2,103	$	265,000	$	2,168

Effect of Cash Flow Hedge Accounting on the Consolidated Statements of Operations

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three months ended March 31, 2025 and 2024.


	Three months ended				Three months ended
	March 31, 2025				March 31, 2024
(In thousands)	Interest Income		Interest Expense		Interest Income		Interest Expense
Gain or (loss) on cash flow hedging relationship:
Gain reclassified from accumulated OCI into income	$	115	$	—	$	—	$	—

Cash Flow Hedges

Cash flow hedges involve the receipt of fixed amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company uses these types of derivatives to hedge the variable cash flows associated with existing or forecasted variable-rate securities.


Notes to Consolidated Financial Statements (unaudited)

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest income in the same periods during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate securities. During the next twelve months, the Company estimates that an additional $216.4 thousand will be reclassified as a reduction in interest income.

The Company did not terminate any derivatives during the three months ended March 31, 2025. There were no derivatives during the three months ended March 31, 2024.

The table below presents the effect of the cash flow hedge accounting on accumulated other comprehensive income for the periods indicated:


	Three months ended
	March 31,
(In thousands)	2025		2024
Gain recognized in other comprehensive income	$	212	$	—
Gain reclassified from other comprehensive income into interest income	115		—


Notes to Consolidated Financial Statements (unaudited)

11. COMMITMENTS, CONTINGENCIES AND OFF BALANCE SHEET RISK

Credit Commitments

The Company is party to various credit related financial instruments with off balance sheet risk. The Company, in the normal course of business, issues such financial instruments in order to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated statements of financial condition.

The following financial instruments were outstanding whose contract amounts represent credit risk as of the related periods:





	March 31, 2025		December 31, 2024
(In thousands)
Commitments to extend credit	$	491,415	$	442,761
Standby letters of credit	30,046		29,715
Total	$	521,461	$	472,476

Included in the above table are extensions of credit to related parties and affiliates. As of March 31, 2025, the Company had $70.0 million of lines of credit and $0.3 million of standby letters of credit. As of December 31, 2024, the Company had $70.0 million of lines of credit and $0.3 million of standby letters of credit.

Commitments to extend credit are contracts to lend to a customer as long as there is no violation of any condition established in the contract. These commitments have fixed expiration dates and other termination clauses and generally require the payment of nonrefundable fees. Since a portion of the commitments are expected to expire without being drawn upon, the contractual principal amounts do not necessarily represent future cash requirements. The Company’s maximum exposure to credit risk is represented by the contractual amount of these instruments. These instruments represent ultimate exposure to credit risk only to the extent they are subsequently drawn upon by customers.

Standby letters of credit are conditional lending commitments issued by the Company to guarantee the financial performance of a customer to a third party. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The balance sheet carrying value of standby letters of credit approximates any nonrefundable fees received but not yet recorded as income. The Company considers this carrying value, which is not material, to approximate the estimated fair value of these financial instruments.

The Company reserves for the credit risk inherent in off balance sheet credit commitments. This allowance, which is included in other liabilities, amounted to approximately $4.6 million as of March 31, 2025, compared to an allowance of $4.1 million as of December 31, 2024. The provision of credit losses related to off balance sheet credit commitments was $0.4 million for the three months ended March 31, 2025, and $0.7 million for the three months ended March 31, 2024.

Investment Obligations

The Company is a party to agreements with Pace Funding Group LLC, which operates Home Run Financing, for the purchase of PACE assessment securities until December 2026. As of March 31, 2025, the estimated remaining commitment was $228.4 million. The PACE assessments have equal-lien priority with property taxes and generally rank senior to first lien mortgages. These investments are currently held in the Company's available for sale and held-to-maturity investment portfolios. The Company evaluates these obligations for credit risk and the recorded reserve is immaterial.

Other Commitments and Contingencies

In the ordinary course of business, there are various legal proceedings pending against the Company. Based on the opinion of counsel, management believes that the aggregate liabilities, if any, arising from such actions would not have a material adverse effect on the consolidated financial position or results of operations of the Company. As part of the Company's ongoing investments in Variable Interest Entities projects, we also have commitments to provide financing, which are included in Note 14.


Notes to Consolidated Financial Statements (unaudited)

12. LEASES

The Bank as a lessee has operating leases primarily consisting of real estate arrangements where the Company operates its headquarters, branches and business production offices. All leases identified as in scope are accounted for as operating leases as of March 31, 2025. These leases are typically long-term leases and generally are not complicated arrangements or structures. Several of the leases contain renewal options at a rate comparable to the fair market value based on comparable analysis to similar properties in the Bank’s geographies.

Real estate operating leases are presented as a right-of-use (“ROU”) asset and a related operating lease liability on the Consolidated Statements of Financial Condition. The ROU asset represents the Company’s right to use the underlying asset for the lease term and the operating lease liabilities represent the obligation to make lease payments arising from the lease. The Company applied its incremental borrowing rate (“IBR”) as the discount rate to the remaining lease payments to derive a present value calculation for initial measurement of the operating lease liability. The IBR reflects the interest rate the Company would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments. Lease expense is recognized on a straight-line basis over the lease term.

During April 2025, the Company entered into a fifteen year lease agreement for the Company's headquarters. The base rent amount for the premises commences at $6.2 million per annum and is escalated by approximately 9% on the fifth anniversary of rent commencement and by an additional approximately 8% on the tenth anniversary of rent commencement. The company is expected to move to the new premises in mid 2026.

As of March 31, 2025, the ROU lease asset was $12.5 million and operating lease liability was $17.2 million. As of December 31, 2024, the ROU lease asset was $14.2 million and operating lease liability was $19.7 million.

The following table summarizes our lease cost and other operating lease information:


	Three Months Ended March 31,
	2025		2024
(In thousands)
Operating lease cost	$	2,051	$	1,840



Cash paid for amounts included in the measurement of operating leases liability	2,743		4,186

Note: Sublease income and variable income or expense considered immaterial

The lease expiration dates ranged from 0 to 3 years for both March 31, 2025, and March 31, 2024.

The weighted average remaining lease term on operating leases at March 31, 2025 and March 31, 2024 was 1.7 years and 2.9 years, respectively.

The weighted average discount rate used for the operating lease liability was 3.31% and 3.15% at March 31, 2025 and March 31, 2024, respectively.

The following table presents the remaining commitments for operating lease payments for the next five years and thereafter, as well as a reconciliation to the discounted operating leases liability recorded in the Consolidated Statements of Financial Condition as of March 31, 2025:


Notes to Consolidated Financial Statements (unaudited)


(In thousands)	As of March 31, 2025
2025	$	8,035
2026	8,877
2027	747

2028 and thereafter	—
Total undiscounted operating lease payments	17,659
Less: present value adjustment	469
Total Operating leases liability	$	17,190


Notes to Consolidated Financial Statements (unaudited)

13. GOODWILL AND INTANGIBLE ASSETS

Goodwill

In accordance with GAAP, the Company performs an annual test as of June 30 to identify potential impairment of goodwill, or more frequently if events or circumstances indicate a potential impairment may exist. If the carrying amount of the Company, as a sole reporting unit, including goodwill, exceeds its fair value, an impairment loss is recognized in an amount equal to that excess up to the amount of the recorded goodwill.

The Company performed its annual test based upon market data as of June 30, 2024 and estimates and assumptions that the Company believes most appropriate for the analysis. Based on the qualitative analysis performed in accordance with ASC 350, the Company determined it more likely than not that goodwill was not impaired as of June 30, 2024. During the three months ended March 31, 2025, there were no events or circumstances that would indicate that a potential impairment exists. Changes in certain assumptions used in the Company's assessment could result in significant differences in the results of the impairment test. Should market conditions or management’s assumptions change significantly in the future, an impairment to goodwill is possible.

At March 31, 2025 and December 31, 2024, the carrying amount of goodwill was $12.9 million.

The gross carrying amount of the core deposit intangible was $9.1 million, and the accumulated amortization of the core deposit intangible was $7.8 million and $7.6 million as of March 31, 2025 and December 31, 2024, respectively. At March 31, 2025 and December 31, 2024, the carrying amount of the core deposit intangible was $1.3 million and $1.5 million, respectively.

Amortization expense recognized on the core deposit intangible was $0.1 million and $0.2 million for the three months ended March 31, 2025 and March 31, 2024, respectively.

The following table reflects the estimated amortization expense, comprised entirely by the Company’s core deposit intangible asset, for the next five years and thereafter:


(In thousands)	Total
2025	$	430
2026	419
2027	265
2028	111
2029	33
Thereafter	85
Total	$	1,343


Notes to Consolidated Financial Statements (unaudited)

14. VARIABLE INTEREST ENTITIES

Tax Credit Investments

The Company makes investments in unconsolidated entities that construct, own and operate solar generation facilities. An unrelated third party is the managing member and has control over the significant activities of the variable interest entities ("VIE"). The Company generates a return through the receipt of tax credits allocated to the projects, as well as operational distributions. The primary risk of loss is generally mitigated by policies requiring that the project qualify for the expected tax credits prior to the Company making its investment. Any loans to the VIE are secured. As of March 31, 2025, the Company's maximum exposure to loss is $50.7 million.


	March 31, 2025		December 31, 2024
(In thousands)
Unconsolidated Variable Interest Entities
Tax credit investments included in equity investments	$	1,889	$	4,732

Loan commitments	48,797		49,744
Funded portion of loan commitments	48,797		49,744

The following table summarizes the tax benefits conveyed by the Company’s solar generation VIE investments:


	Three Months Ended
	March 31,
	2025		2024
(In thousands)
Tax credits and other tax benefits recognized	$	1,985	$	863


Notes to Consolidated Financial Statements (unaudited)

15. SEGMENT INFORMATION

The Company's reportable segment is determined by the Chief Executive Officer, who is the designated chief operating decision maker, based upon information provided about the Company's products and services offered, primarily banking operations. Substantially all of our operations occur through the Bank and involve the delivery of loan and deposit products to customers. Management makes operating decisions and assesses performance based on an ongoing review of its banking operation, which constitutes our only operating segment for financial reporting purposes. We do not consider our trust and investment management business as a separate segment. The accounting policies of the Company's segment are the same as those described in the Note 1 “Summary of Significant Accounting Policies” in our 2024 Annual Report.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

General

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.

In addition to historical information, this discussion includes certain forward-looking statements regarding business matters and events and trends that may affect our future results. For additional information regarding forward-looking statements and our related cautionary disclosures, see the “Cautionary Note Regarding Forward-Looking Statements” beginning on page ii of this report.

Overview

Our business

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.

We offer a complete suite of commercial and retail banking, investment management and trust and custody services. Our commercial banking and trust businesses are national in scope and we also offer a full range of products and services to both commercial and retail customers through our three branch offices across New York City, one branch office in Washington, D.C., one branch office in San Francisco, one commercial office in Boston and our digital banking platform. Our corporate divisions include Commercial Banking, Trust and Investment Management and Consumer Banking. Our product line includes residential mortgage loans, commercial and industrial ("C&I") loans, commercial real estate ("CRE") loans, multifamily loans, consumer loans (predominantly residential solar) and a variety of commercial and consumer deposit products, including non-interest-bearing accounts, interest-bearing demand products, savings accounts, money market accounts and certificates of deposit. We also offer online banking and bill payment services, online cash management, safe deposit box rentals, debit card and ATM card services, and the availability of a nationwide network of ATMs for our customers.

We currently offer a wide range of trust, custody and investment management services, including asset safekeeping, corporate actions, income collections, proxy services, account transition, asset transfers, and conversion management. We also offer a broad range of investment products, including both index and actively-managed funds spanning equity, fixed-income, real estate and alternative investment strategies to meet the needs of our clients. Our products and services are tailored to our target customer base that prefers a financial partner that is socially responsible, values-oriented and committed to creating positive change in the world. These customers include advocacy-based non-profits, social welfare organizations, national labor unions, political organizations, foundations, socially responsible businesses, and other for-profit companies that seek to balance their profit-making activities with activities that benefit their other stakeholders, as well as the members and stakeholders of these commercial customers.

Our goal is to be the go-to financial partner for people and organizations who strive to make a meaningful impact in our society and who care about their communities, the environment, and social justice. The growth of our business is fundamental to our social mission and how we deliver impact and value for our stakeholders. The Company has obtained B CorporationTM certification, a distinction earned after being evaluated under rigorous standards of social and environmental performance, accountability, and transparency. The Company is also the largest of twelve commercial financial institutions in the United States that are members of the Global Alliance for Banking on Values, a network of banking leaders from around the world committed to advancing positive change in the banking sector. We hold governance positions in the United Nations ("UN") convened Net Zero Banking Alliance and the Global Partnership for Carbon Accounting Financials ("PCAF") and an advisory role for the Glasgow Finance Alliance for Net Zero.

Critical and Significant Accounting Policies and Estimates

Our consolidated financial statements are prepared based on the application of accounting policies generally accepted in the United States, or GAAP, and conform to general practices within the banking industry. Our significant accounting policies are more fully described in Note 1 of our audited consolidated financial statements included in our 2024 Annual Report.

There have been no significant changes to our significant accounting policies, or the estimates made pursuant to those policies as described in our 2024 Annual Report.

Management has identified accounting policies that, due to the estimates, assumptions and judgments inherent in those policies, are critical in understanding our financial statements. Management has presented the application of these policies to the Audit Committee of our Board of Directors.

Allowance for credit losses on loans

Methods and Assumptions Underlying the Estimate

The allowance for credit losses is established and maintained through a provision for credit losses based on expected losses inherent in our loan portfolio. Management evaluates the adequacy of the allowance on a quarterly basis, and additions to the allowance are charged to expense and subsequent changes (favorable and unfavorable) in expected credit losses are recognized immediately in net income as a credit loss expense or a reversal of credit loss expense. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed, expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In determining the allowance for credit losses for loans that share similar risk characteristics, the Company utilizes a model which compares the amortized cost basis of the loan to the net present value of expected cash flows to be collected. Expected credit losses are determined by aggregating the individual cash flows and calculating a loss percentage by loan segment for loans that share similar risk characteristics. For a loan that does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. Within the model, assumptions are made in the determination of baseline loss rates, severity rates, reasonable and supportable economic forecasts, and prepayment rates.

The Company assesses the sensitivity of key assumptions at least annually by stressing the assumptions to understand the impact on the model. While management utilizes its best judgment and information available, the ultimate adequacy of our allowance is dependent upon a variety of factors beyond our control which are inherently difficult to predict, the most significant being the macroeconomic forecasts. The Company's forecast of economic conditions considers baseline, favorable, and adverse scenarios. As economic conditions can change, the anticipated amount of estimated loan defaults and losses, and therefore the adequacy of the allowance, could change significantly. Economic conditions more favorable than forecasted could lead to reductions in the amount of the allowance, and conversely conditions more adverse than forecasted could require increases in the amount of the allowance. Changes in economic forecasts may not occur in the same direction or magnitude across all segments of our loan portfolio and deterioration in some quantitative inputs may offset improvement in others. The Company selects the economic forecast that is most reflective of expectations at that point in time, and changes could significantly impact the calculated estimated credit losses.

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.

For loans that do not share risk characteristics, the Company evaluates these loans on an individual basis based on various factors. Factors that may be considered are borrowers delinquency trends and nonaccrual status, probability of foreclosure or note sale, changes in the borrowers' circumstances or cash collections, borrowers' industry, or other facts and circumstances of the loan or collateral. The expected credit loss is measured based on net realizable value, that is, the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the amortized cost basis of the loan. For collateral dependent loans, expected credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral, less estimated costs to sell.

Uncertainties Regarding the Estimate

Estimating the timing and amounts of future losses is subject to significant management judgment as these projected cash flows rely upon the estimates discussed within the Allowance for Credit Losses policy and factors that are reflective of current or future expected conditions. These estimates depend on the duration of current overall economic conditions, industry, borrowers, or portfolio specific conditions. Volatility in certain credit metrics and differences between expected and actual outcomes are to be expected.

Customers may not repay their loans according to the original terms, and the collateral securing the payment of those loans may be insufficient to pay any remaining loan balance. Bank regulators periodically review our allowance for credit losses and may require us to increase our provision for credit losses or loan charge-offs.

Impact on Financial Condition and Results of Operations

If our assumptions prove to be incorrect, the allowance for credit losses may not be sufficient to cover expected losses in the loan portfolio, resulting in additions to the allowance. Future additions or reductions to the allowance may be necessary based on changes in economic, market or other conditions. Changes in estimates could result in a material change in the allowance through charges to earnings and could materially decrease our net income.

We may experience significant credit losses if borrowers' experience financial difficulties, which could have a material adverse effect on our operating results.

In addition, various regulatory agencies, as an integral part of the examination process, periodically review the allowance for credit losses. Such agencies may require the Company to recognize adjustments to the allowance based on their judgments of the information available to them at the time of their examination.

Recent Accounting Pronouncements

Accounting Standards Effective in 2024 and onward

ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323) - Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method

ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment 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.

Results of Operations

General

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.

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.

Net Interest Income

Net interest income, representing interest income less interest expense, is a significant contributor to our revenues and earnings. We generate interest income from interest, dividends and prepayment fees on interest-earning assets, including loans, investment securities and other short-term investments. We incur interest expense from interest paid on interest-bearing liabilities, including interest-bearing deposits, subordinated debt, Federal Home Loan Bank of New York ("FHLBNY") advances, federal funds purchased and other borrowings. To evaluate net interest income, we measure and monitor (i) yields on our loans, investments, and other interest-earning assets, (ii) the costs of our deposits and other funding sources, (iii) our net interest spread and (iv) our net interest margin. Net interest spread is equal to the difference between rates earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is equal to the annualized net interest income divided by average interest-earning assets. Because non-interest-bearing sources of funds, such as non-interest-bearing deposits and stockholders’ equity, also fund interest-earning assets, net interest margin includes the benefit of these non-interest-bearing sources.

Changes in the market interest rates and interest rates we earn on interest-earning assets or pay on interest-bearing liabilities, as well as the volume and types of interest-earning assets, interest-bearing and non-interest-bearing liabilities, are usually the largest drivers of periodic changes in net interest spread, net interest margin and net interest income.

Three Months Ended March 31, 2025 and 2024

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:


	Three Months Ended March 31, 2025						Three Months Ended March 31, 2024
(In thousands)	Average Balance		Income / Expense		Yield / Rate		Average Balance		Income / Expense		Yield / Rate
Interest-earning assets:
Interest-bearing deposits in banks	$	121,321	$	1,194	3.99	%	$	205,369	$	2,592	5.08	%
Securities(1)	3,220,590		40,867		5.15	%	3,170,356		41,064		5.21	%
Resell agreements	30,169		786		10.57	%	79,011		1,326		6.75	%

Total loans, net (2)	4,695,264		57,843		5.00	%	4,390,489		51,952		4.76	%
Total interest-earning assets	8,067,344		100,690		5.06	%	7,845,225		96,934		4.97	%
Non-interest-earning assets:
Cash and due from banks	5,045						5,068
Other assets	220,589						226,270
Total assets	$	8,292,978					$	8,076,563

Interest-bearing liabilities:
Savings, NOW and money market deposits	$	4,242,786	$	26,806	2.56	%	$	3,591,551	$	21,872	2.45	%
Time deposits	232,683		2,111		3.68	%	188,045		1,576		3.37	%
Brokered CDs	—		—		0.00	%	190,240		2,443		5.16	%
Total interest-bearing deposits	4,475,469		28,917		2.62	%	3,969,836		25,891		2.62	%


Borrowings	134,340		1,196		3.61	%	288,093		3,006		4.20	%
Total interest-bearing liabilities	4,609,809		30,113		2.65	%	4,257,929		28,897		2.73	%
Non-interest-bearing liabilities:
Demand and transaction deposits	2,901,061						3,138,238
Other liabilities	59,728						79,637
Total liabilities	7,570,598						7,475,804
Stockholders' equity	722,380						600,759
Total liabilities and stockholders' equity	$	8,292,978					$	8,076,563

Net interest income / interest rate spread			$	70,577	2.41	%			$	68,037	2.24	%
Net interest-earning assets / net interest margin	$	3,457,535			3.55	%	$	3,587,296			3.49	%

Total deposits / total cost of deposits	$	7,376,530			1.59	%	$	7,108,074			1.46	%
Total funding / total cost of funds	$	7,510,870			1.63	%	$	7,396,167			1.57	%

(1) Includes FHLBNY stock in the average balance, and dividend income on FHLBNY stock in interest income.

(2) Includes prepayment penalty income in 1Q2025 and 1Q2024 of $0 and $18 thousand, respectively.

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.

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.

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.

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.

Rate-Volume Analysis

Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in weighted average interest rates. The table below presents the effect of volume and rate changes on interest income and expense. Changes in volume are changes in the average balance multiplied by the previous period’s average rate. Changes in rate are changes in the average rate multiplied by the average balance from the previous period. The net changes attributable to the combined impact of both rate and volume have been allocated proportionately to the changes due to volume and the changes due to rate:


	Three Months Ended March 31, 2025 over March 31, 2024
(In thousands)	Volume		Changes Due To Rate		Net Change

Interest-earning assets:
Interest-bearing deposits in banks	$	(1,003)	$	(395)	$	(1,398)
Securities	443		(640)		(197)
Resell agreements	(915)		375		(540)
Total loans, net	3,387		2,504		5,891
Total interest income	1,912		1,844		3,756





Interest-bearing liabilities:
Savings, NOW and money market deposits	3,855		1,079		4,934
Time deposits	372		163		535
Brokered CDs	(2,443)		—		(2,443)
Total deposits	1,784		1,242		3,026


Borrowings	(1,977)		167		(1,810)
Total interest expense	(193)		1,409		1,216

Change in net interest income	$	2,105	$	435	$	2,540

Provision for Credit Losses

We establish an allowance for credit losses through a provision for credit losses charged as an expense in our Consolidated Statements of Income.

Three Months Ended March 31, 2025 and 2024

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.

For a further discussion of the allowance, see “Allowance for Credit Losses” below.

Non-Interest Income

Our non-interest income includes Trust Department fees, which consist of fees received in connection with investment advisory and custodial management services of investment accounts, service fees charged on deposit accounts, income on BOLI, gain or loss on sales of securities, gain or loss on sales of loans, changes in fair value on loans held-for-sale, income or losses from equity method investments, and other income.

The following table presents our non-interest income for the periods indicated:



	Three Months Ended March 31,
(In thousands)	2025		2024
Trust Department fees	$	4,191	$	3,854
Service charges on deposit accounts	3,438		6,136
Bank-owned life insurance income	626		609
Losses on sale of securities	(680)		(2,774)
Gain on sale of loans and changes in fair value on loans held-for-sale, net	832		47

Equity method investments (loss) income	(2,508)		2,072
Other income	507		285
Total non-interest income	$	6,406	$	10,229

Three Months Ended March 31, 2025 and 2024

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 the first 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.

Non-Interest Expense

Non-interest expense includes compensation and employee benefits, occupancy and depreciation expense, professional fees (including legal, accounting and other professional services), technology, office maintenance and depreciation, amortization of intangible assets, advertising and promotion, federal deposit insurance premiums, and other expenses. The following table presents non-interest expense for the periods indicated:


	Three Months Ended March 31,
(In thousands)	2025		2024

Compensation and employee benefits	$	23,314	$	22,273
Occupancy and depreciation	3,293		2,904
Professional fees	4,739		2,376

Technology	5,619		4,629
Office maintenance and depreciation	629		663
Amortization of intangible assets	144		183
Advertising and promotion	51		1,219
Federal deposit insurance premiums	900		1,050
Other expense	2,961		2,855
Total non-interest expense	$	41,650	$	38,152

Three Months Ended March 31, 2025 and 2024

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.

Income Taxes

Three Months Ended March 31, 2025 and 2024

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.

Financial Condition

Balance Sheet

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.

Investment Securities

The primary goal of our securities portfolio is to maintain an available source of liquidity and an efficient investment return on excess capital, while maintaining a low-risk profile. We also use our securities portfolio to manage interest rate risk, meet Community Reinvestment Act (“CRA”) goals, support the Company's mission, and to provide collateral for certain types of deposits or borrowings. An Investment Committee chaired by our Chief Financial Officer manages our investment securities portfolio according to written investment policies approved by our Board of Directors. Investments in our securities portfolio may change over time based on management’s objectives and market conditions.

We seek to minimize credit risk in our securities portfolio through diversification, concentration limits, restrictions on high risk investments (such as subordinated positions), comprehensive pre-purchase analysis and stress testing, ongoing monitoring and by investing a significant portion of our securities portfolio in U.S. GSE obligations. GSEs include the Federal Home Loan Mortgage Corporation (“FHLMC”), the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”) and the Small Business Administration (“SBA”). GNMA is a wholly-owned U.S. Government corporation whereas FHLMC and FNMA are private. Mortgage-related securities may include mortgage pass-through certificates, participation certificates and CMOs. We invest in non-GSE securities, including property assessed clean energy ("PACE") assessments, in order to generate higher returns, improve portfolio diversification and reduce interest rate and prepayment risk. With the exception of small legacy CRA investments, Trust Preferred securities, and certain corporate bonds, all of our non-GSE securities are senior positions that are the top of the capital structure.

Our investment securities portfolio consists of securities classified as available for sale and held-to-maturity. There were no trading securities in our investment portfolio at March 31, 2025 or at December 31, 2024. All available for sale securities are carried at fair value and may be used for liquidity purposes should management consider it to be in our best interest.

At March 31, 2025 and December 31, 2024, we had available for sale securities of $1.71 billion and $1.63 billion, respectively.

Our held-to-maturity securities portfolio primarily consisted of PACE assessments, tax-exempt municipal securities, GSE commercial and residential certificates and other debt. We carry these securities at amortized cost. We had held-to-maturity securities of $1.57 billion at March 31, 2025, and $1.59 billion at December 31, 2024.

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.

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.

For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before the recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that an expected credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

Changes in the allowance for credit losses are recorded as credit loss expense (or recovery). Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

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.

The following table is a summary of our investment portfolio, using market value for available for sale securities and amortized cost excluding the allowance for credit losses for held-to-maturity securities, as of the dates indicated.






	March 31, 2025				December 31, 2024
(In thousands)	Amount		% of Portfolio		Amount		% of Portfolio
Available for sale:
Traditional securities:
GSE certificates & CMOs	$	527,989	16.1	%	$	508,158	15.8	%
Non-GSE certificates & CMOs	244,079		7.4	%	214,175		6.7	%
ABS	671,036		20.5	%	652,334		20.3	%
Corporate	95,063		2.9	%	98,315		3.1	%
Other	7,960		0.2	%	4,065		0.1	%

PACE assessments:
Residential PACE assessments	161,147		4.9	%	152,011		4.7	%





Total available for sale	1,707,274		52.0	%	1,629,058		50.7	%

Held-to-maturity:
Traditional securities:
GSE certificates & CMOs	$	186,534	5.7	%	$	188,194	5.9	%
Non-GSE certificates & CMOs	72,781		2.2	%	73,850		2.3	%
ABS	210,921		6.4	%	215,161		6.7	%
Municipal	64,875		2.0	%	65,090		2.0	%


PACE assessments:
Commercial PACE assessments	271,200		8.3	%	268,692		8.4	%
Residential PACE assessments	767,507		23.4	%	775,922		24.0	%



Total held-to-maturity	1,573,818		48.0	%	1,586,909		49.3	%

Total securities	$	3,281,092	100.0	%	$	3,215,967	100.0	%

The following table show contractual maturities and yields for the available-for sale and held-to-maturity securities portfolios:




Contractual Maturity as of March 31, 2025
	One Year or Less				One to Five Years				Five to Ten Years				Due after Ten Years
(In thousands)	Amortized Cost		Weighted Average Yield (1)		Amortized Cost		Weighted Average Yield (1)		Amortized Cost		Weighted Average Yield (1)		Amortized Cost		Weighted Average Yield (1)

Available for sale:
Traditional securities:
GSE certificates & CMOs	$	—	—	%	$	4,146	3.0	%	$	60,510	4.3	%	$	486,638	4.2	%
Non-GSE certificates & CMOs	—		—	%	6,750		5.8	%	—		—	%	250,166		4.0	%
ABS	—		—	%	22,188		6.0	%	187,932		6.0	%	473,168		5.5	%
Corporate	—		—	%	27,483		4.4	%	76,002		3.7	%	—		—	%
Other	200		4.3	%	—		—	%	—		—	%	7,536		5.7	%

PACE assessments:
Residential PACE assessments	22		—	%	1,442		0.1	%	4,029		0.1	%	151,391		7.3	%









Held-to-maturity:
Traditional securities:
GSE certificates & CMOs	—		—	%	14,577		3.1	%	22,122		3.0	%	149,835		2.9	%
Non-GSE certificates & CMOs	—		—	%	—		—	%	—		—	%	72,781		2.3	%
ABS	—		—	%	—		—	%	119,330		6.1	%	91,591		3.9	%
Municipal	—		—	%	9,463		3.7	%	13,178		3.4	%	42,234		2.5	%


PACE assessments:
Commercial PACE assessments	—		—	%	—		—	%	5,658		0.1	%	265,542		5.4	%
Residential PACE assessments	2,414		0.1	%	9,341		0.1	%	33,617		0.2	%	722,135		5.0	%




Total securities	$	2,636	4.3	%	$	95,390	4.5	%	$	522,378	5.3	%	$	2,713,017	4.8	%

(1) Estimated yield based on book price (amortized cost divided by par) using estimated prepayments and no change in interest rates.

The following table shows a breakdown of our asset-backed securities by sector and ratings at carrying value based on the fair value of available for sale securities and amortized cost of held-to-maturity securities as of March 31, 2025:


					Expected Avg. Life in Years			Credit Ratings Highest Rating if split rated
(In thousands)	Amount		%			% Floating		% AAA		% AA		% A		% BBB		%Not Rated		Total
Collateralized Loan Obligation ("CLO") Commercial & Industrial	$	523,630	61	%	3.1	100	%	98	%	2	%	0	%	0	%	0	%	100	%
Consumer	186,212		21	%	5.0	0	%	33	%	38	%	29	%	0	%	0	%	100	%
Mortgage	85,199		10	%	1.7	100	%	100	%	0	%	0	%	0	%	0	%	100	%
Student	72,454		8	%	4.1	76	%	73	%	27	%	0	%	0	%	0	%	100	%
Total Securities:	$	867,495	100	%	3.4	77	%	82	%	12	%	6	%	0	%	0	%	100	%

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.”

Loans

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.

The following table sets forth the composition of our loan portfolio, as of March 31, 2025 and December 31, 2024:


(In thousands)	March 31, 2025				December 31, 2024
	Amount		% of total loans		Amount		% of total loans
Commercial portfolio:
Commercial and industrial	$	1,183,297	25.3	%	$	1,175,490	25.2	%
Multifamily mortgages	1,371,950		29.3	%	1,351,604		28.9	%
Commercial real estate mortgages	409,004		8.7	%	411,387		8.8	%
Construction and land development mortgages	20,690		0.4	%	20,683		0.4	%
Total commercial portfolio	2,984,941		63.8	%	2,959,164		63.3	%

Retail portfolio:
Residential real estate lending	1,303,856		27.9	%	1,313,617		28.1	%
Consumer solar	356,601		7.6	%	365,516		7.8	%
Consumer and other	32,108		0.7	%	34,627		0.8	%
Total retail portfolio	1,692,565		36.2	%	1,713,760		36.7	%
Total loans	4,677,506		100.0	%	4,672,924		100.0	%


Allowance for credit losses	(57,676)				(60,086)
Total loans, net	$	4,619,830			$	4,612,838

Commercial loan portfolio

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:

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.

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.

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%.

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.

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%.

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.

Retail loan portfolio

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.

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.

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.

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.

Maturities of Loans

The information in the following table is based on the contractual maturities of individual loans, including loans that may be subject to renewal at their contractual maturity. Renewal of these loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments of loans may differ from the maturities reflected below because borrowers have the right to prepay obligations with or without prepayment penalties. The following tables summarize the loan maturity distribution by type and related interest rate characteristics at March 31, 2025:




(In thousands)	One year or less		After one but within five years		After five years but within 15 years		After 15 years		Total

Commercial Portfolio:
Commercial and industrial	$	696,212	$	237,377	$	56,139	$	193,569	$	1,183,297
Multifamily	167,062		580,072		278,415		346,401		1,371,950
Commercial real estate	113,446		131,701		102,767		61,090		409,004
Construction and land development	4,385		—		—		16,305		20,690

Retail Portfolio:
Residential real estate lending	102		5,197		126,204		1,172,353		1,303,856


Consumer solar	—		2,237		78,149		276,215		356,601
Consumer and other	129		1,562		22,083		8,334		32,108
Total Loans	$	981,336	$	958,146	$	663,757	$	2,074,267	$	4,677,506

The following table presents our loans held for investment with maturity due after March 31, 2026:


(In thousands)	Fixed		Adjustable		Total
Commercial Portfolio:
Commercial and industrial	$	308,244	$	178,841	$	487,085
Multifamily	1,164,086		40,802		1,204,888
Commercial real estate	274,776		20,782		295,558
Construction and land development	—		16,305		16,305

Retail Portfolio:
Residential real estate lending	759,047		544,707		1,303,754


Consumer solar	356,601		—		356,601
Consumer and other	31,579		400		31,979
Total Loans	$	2,894,333	$	801,837	$	3,696,170

Allowance for Credit Losses

We maintain the allowance at a level we believe is sufficient to absorb current expected credit losses in our loan portfolio.

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:


	Three Months Ended March 31,
(In thousands)	2025		2024

Balance at beginning of period	$	60,086	$	65,691

Loan charge-offs:
Commercial portfolio:
Commercial and industrial	(823)		(400)
Multifamily	—		—
Commercial real estate	—		—
Construction and land development	—		—
Retail portfolio:
Residential real estate lending	(69)		(160)


Consumer solar	(1,974)		(1,806)
Consumer and other	(111)		(96)
Total loan charge-offs	(2,977)		(2,462)
Recoveries of loans previously charged-off:
Commercial portfolio:
Commercial and industrial	10		4
Multifamily	—		—
Commercial real estate	—		—
Construction and land development	—		—
Retail portfolio:
Residential real estate lending	75		147


Consumer solar	266		121
Consumer and other	50		9
Total loan recoveries	401		281
Net charge-offs	(2,576)		(2,181)
Provision for credit losses	166		890
Balance at end of period	$	57,676	$	64,400

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 million at December 31, 2024. The ratio of allowance to total loans was 1.23% at March 31, 2025 and 1.29% at December 31, 2024.

At March 31, 2025 the allowance for credit losses on held-to-maturity securities was $0.7 million, compared to $0.7 million at December 31, 2024.

Allocation of Allowance for Credit Losses

The following table presents the allocation of the allowance for credit losses on loans and the percentage of the total amount of loans in each loan category listed as of the dates indicated:


	At March 31, 2025						At December 31, 2024
(In thousands)	Amount		% of total loans				Amount		% of total loans
Commercial Portfolio:
Commercial and industrial	$	15,322	25.3	%			$	13,505	25.2	%
Multifamily	3,151		29.4	%			2,794		28.9	%
Commercial real estate	1,589		8.7	%			1,600		8.8	%
Construction and land development	1,252		0.4	%			1,253		0.4	%
Total commercial portfolio	$	21,314	63.8	%			$	19,152	63.3	%

Retail Portfolio:
Residential real estate lending	$	9,538	27.9	%			9,493		28.1	%
Consumer solar	25,005		7.6	%	33.1	%	29,095		7.8	%
Consumer and other	1,819		0.7	%			2,346		0.8	%
Total retail portfolio	$	36,362	36.2	%			$	40,934	36.7	%

Total allowance for credit losses	$	57,676					$	60,086

The following table presents the allocation of the allowance for credit losses on securities and the percentage of the total amount of held-to-maturity securities in each security category listed as of the dates indicated:


	At March 31, 2025				At December 31, 2024
(In thousands)	Amount		% of total held-to-maturity securities		Amount		% of total held-to-maturity securities
Traditional securities:
GSE certificates & CMOs	$	—	11.9	%	$	—	11.9	%
Non-GSE certificates & CMOs	47		4.6	%	49		4.7	%
ABS	—		13.5	%	—		13.6	%
Municipal	—		4.1	%	—		4.1	%
Total traditional securities	$	47	34.1	%	$	49	34.3	%

PACE assessments:
Commercial PACE assessments	$	271	17.2	%	$	268	16.9	%
Residential PACE assessments	383		48.8	%	387		48.8	%
Total retail portfolio	$	654	66.0	%	$	655	65.7	%

Total allowance for credit losses on securities	$	701			$	704

Nonperforming Assets

Nonperforming assets include all loans categorized as nonaccrual, other real estate owned and other repossessed assets. The accrual of interest on loans is discontinued, or the loan is placed on nonaccrual, when the full collection of principal and interest is in doubt. Interest on loans is generally recognized on the accrual basis. Interest is not accrued on loans that are more than 90 days delinquent on payments, and any interest that was accrued but unpaid on such loans is reversed from interest income at that time, or when deemed to be uncollectible. Interest subsequently received on such loans is recorded as interest income or alternatively as a reduction in the amortized cost of the loan if there is significant doubt as to the collectability of the unpaid principal balance. Loans are returned to accrual status when principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The following table sets forth our nonperforming assets as of March 31, 2025 and December 31, 2024:


(In thousands)	March 31, 2025			December 31, 2024
Loans 90 days past due and accruing	$	—		$	—
Nonaccrual loans held for sale	989			4,853
Nonaccrual loans - Commercial	27,872			16,041
Nonaccrual loans - Retail	5,072			4,968

Nonaccrual securities	7			8
Total nonperforming assets	$	33,940		$	25,870

Nonaccrual loans:
Commercial and industrial	$	12,786		$	872
Multifamily	—			—
Commercial real estate	3,979			4,062
Construction and land development	11,107			11,107
Total commercial portfolio	27,872			16,041

Residential real estate lending	1,375			1,771


Consumer solar	3,479			2,827
Consumer and other	218			370
Total retail portfolio	5,072			4,968
Total nonaccrual loans	$	32,944		$	21,009

Nonperforming assets to total assets	0.41		%	0.31		%
Nonaccrual assets to total assets	0.41		%	0.31		%
Nonaccrual loans to total loans	0.70		%	0.45		%
Allowance for credit losses on loans to nonaccrual loans	175.07		%	286.00		%
Allowance for credit losses on loans to total loans	1.23		%	1.29		%
Net charge-offs to average loans	0.22		%	0.36		%

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.

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.

Resell Agreements

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%.

Deferred Tax Asset

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.

We will evaluate the recoverability of our net deferred tax asset on a periodic basis and record decreases (increases) as a deferred tax provision (benefit) in the Consolidated Statements of Income as appropriate.

Deposits

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.

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.

Additionally, we utilize a custodial deposit transference structure through the IntraFi ICS network for certain deposit programs whereby we, acting as custodian of account holder funds, place a portion of such account holder funds that are not needed to support near term settlement at one or more third-party banks insured by the FDIC (each, a "Program Bank"). Accounts opened at Program Banks are established in our name as custodian, for the benefit of our account holders. We remain the issuer of all accounts under the applicable account holder agreements and have sole custodial control and transaction authority over the accounts opened at Program Banks. We maintain the records of each account holder's deposits maintained at Program Banks. As of March 31, 2025 and December 31, 2024, these off-balance sheet deposits totaled $214.5 million and $0, respectively. In return for record keeping services at Program Banks, the Company receives a servicing fee. For the three months ended March 31, 2025, the Company recognized $8.6 thousand in servicing fee income compared to $2.9 million for the three months ended March 31, 2024.

Total estimated uninsured deposits at March 31, 2025 and December 31, 2024 were $3.87 billion and $3.71 billion, respectively.

Maturities of time certificates of deposit and other time deposits of $250,000 or more outstanding at March 31, 2025 are summarized as follows:


Maturities as of March 31, 2025
(In thousands)
Within three months	$	20,296
After three but within six months	13,028
After six months but within twelve months	18,316
After twelve months	1,009
	$	52,649

Evaluation of Interest Rate Risk

Our simulation models incorporate various assumptions, which we believe are reasonable but which may have a significant impact on results such as: (1) the timing of changes in interest rates, (2) shifts or rotations in the yield curve, (3) loan and securities prepayment speeds for different interest rate scenarios, (4) interest rates and balances of indeterminate-maturity deposits for different scenarios, and (5) new volume and yield assumptions for loans, securities and deposits. Because of limitations inherent in any approach used to measure interest rate risk, simulation results are not intended as a forecast of the actual effect of a change in market interest rates on our results but rather to better plan and execute appropriate asset-liability management strategies and manage our interest rate risk.

In accordance with the Company's policies, the Company may enter into derivative transactions to hedge against interest rate risk. The impact of existing derivative contracts are included in the simulation analysis below.

Potential changes to our net interest income and economic value of equity in hypothetical rising and declining rate scenarios calculated as of March 31, 2025 are presented in the following table. The projections assume immediate, parallel shifts downward of the yield curve of 100, 200, 300 and 400 basis points and immediate, parallel shifts upward of the yield curve of 100, 200 and 300 basis points.

The results of this simulation analysis are hypothetical and should not be relied on as indicative of expected operating results. A variety of factors might cause actual results to differ substantially from what is depicted. For example, if the timing and magnitude of interest rate changes differ from those projected, our net interest income might vary significantly. Non-parallel yield curve shifts such as a flattening or steepening of the yield curve or changes in interest rate spreads, would also cause our net interest income to be different from that depicted. An increasing interest rate environment could reduce projected net interest income if deposits and other short-term liabilities re-price faster than expected or faster than our assets re-price. Actual results could differ from those projected if we grow assets and liabilities faster or slower than estimated, if we experience a net outflow of deposit liabilities or if our mix of assets and liabilities otherwise changes. Actual results could also differ from those projected if we experience substantially different repayment speeds in our loan portfolio than those assumed in the simulation model. Finally, these simulation results do not contemplate all the actions that we may undertake in response to potential or actual changes in interest rates, such as changes to our loan, investment, deposit, funding or hedging strategies.


Change in Market Interest Rates as of March 31, 2025	Estimated Increase (Decrease) in:
Immediate Shift	Economic Value of Equity	Economic Value of Equity ($ in thousands)	Year 1 Net Interest Income	Year 1 Net Interest Income ($ in thousands)

+300 basis points	-14.9%	(246,978)	-3.2%	(9,561)
+200 basis points	-8.2%	(136,026)	-0.3%	(1,021)
+100 basis points	-2.3%	(38,637)	1.0%	2,925
-100 basis points	-2.6%	(43,188)	-3.4%	(10,041)
-200 basis points	-10.2%	(168,418)	-8.0%	(23,763)
-300 basis points	-23.7%	(391,890)	-12.6%	(37,522)
-400 basis points	-47.2%	(780,259)	-19.4%	(57,860)

Liquidity

Liquidity refers to our ability to maintain cash flow that is adequate to fund our operations, support asset growth, maintain reserve requirements and meet present and future obligations of deposit withdrawals, lending obligations and other contractual obligations through either the sale or maturity of existing assets or by obtaining additional funding through liability management. Our liquidity risk management policy provides the framework that we use to maintain adequate liquidity and sources of available liquidity at levels that enable us to meet all reasonably foreseeable short-term, long-term and strategic liquidity demands. The Asset and Liability Management Committee is responsible for oversight of liquidity risk management activities in accordance with the provisions of our liquidity risk policy and applicable bank regulatory capital and liquidity laws and regulations. Our liquidity risk management process includes (i) ongoing analysis and monitoring of our funding requirements under various balance sheet and economic scenarios, (ii) review and monitoring of lenders, depositors, brokers and other liability holders to ensure appropriate diversification of funding sources and (iii) liquidity contingency planning to address liquidity needs in the event of unforeseen market disruption impacting a wide range of variables. We continuously monitor our liquidity position in order for our assets and liabilities to be managed in a manner that will meet our immediate and long-term funding requirements. We manage our liquidity position to meet the daily cash flow needs of customers, while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives of our stockholders. We also monitor our liquidity requirements in light of interest rate trends, changes in the economy, and the scheduled maturity and interest rate sensitivity of our securities and loan portfolios and deposits. The complexity of liquidity management increases due to the varying levels of management control that can be exerted over different elements of the balance sheet. For example, the timing of maturities of our investment portfolio is fairly predictable and subject to a high degree of control when we make investment decisions. Net deposit inflows and outflows, however, are far less predictable and are not subject to the same degree of certainty.

In addition to assessing liquidity risk on a consolidated basis, we monitor the parent company’s liquidity. The parent company’s routine funding requirements consist primarily of operating expenses, dividends paid to shareholders, debt service, repurchases of common stock and funds used for acquisitions. The parent company obtains funding to meet its obligations from dividends collected from its subsidiaries and the issuance of debt and capital securities. Dividend payments to the parent company by its subsidiary bank are subject to regulatory review and statutory limitations and, in some instances, regulatory approval. The Company maintains sufficient funding to meet expected capital and debt service obligations for 24 months without the support of dividends from subsidiaries and assuming access to the wholesale markets is maintained. The Company maintains sufficient liquidity to meet its capital and debt service obligations for 12 months under adverse conditions without the support of dividends from subsidiaries or access to the wholesale markets.

Our liquidity position is supported by management of our liquid assets and liabilities and access to alternative sources of funds. Our short-term and long-term liquidity requirements are primarily to fund on-going operations, including payment of interest on deposits and debt, extensions of credit to borrowers and capital expenditures. These liquidity requirements are met primarily through our deposits, FHLBNY advances and the principal and interest payments we receive on loans and investment securities. Cash, interest-bearing deposits in third-party banks, securities available for sale and maturing or prepaying balances in our investment and loan portfolios are our most liquid assets. Other sources of liquidity that are available to us include the sale of loans we hold for investment, securitization of loans or PACE assessments, the ability to acquire additional national market non-core deposits, borrowings through the Federal Reserve’s discount window and the issuance of debt or equity securities. We believe that the sources of available liquidity are adequate to meet our current and reasonably foreseeable future liquidity needs.

At March 31, 2025, our cash and equivalents, which consist of cash and amounts due from banks and interest-bearing deposits in other financial institutions, amounted to $65.7 million, or 0.8% of total assets, compared to $60.7 million, or 0.7% of total assets at December 31, 2024. The $5.0 million, or 8.2%, increase is due to normal business activity, paydowns of borrowings, and strategic investment securities purchases, offset by investments in resell agreements. Our available for sale securities at March 31, 2025 were $1.71 billion, or 20.6% of total assets, compared to $1.63 billion, or 19.7% of total assets at December 31, 2024. Available for sale securities with an aggregate fair value of $1.25 billion at March 31, 2025 were pledged to secure outstanding advances, letters of credit, provide additional borrowing potential, and collateralize municipal deposits. Additionally, mortgage loans with an unpaid principal balance of $2.45 billion and $2.45 billion respectively, were pledged to the FHLBNY to secure outstanding advances, letters of credit and to provide additional borrowing potential.

The liability portion of the balance sheet serves as our primary source of liquidity. Over the long term, we plan to meet our future cash needs through the generation of deposits. Customer deposits have historically provided a sizeable source of relatively stable and low-cost funds. We are also a member of the FHLBNY, from which we can borrow for leverage or liquidity purposes. The FHLBNY requires that securities and qualifying loans be pledged to secure any advances. At March 31, 2025, we had $6.0 million advances from the FHLBNY and a remaining credit availability of $2.04 billion. In addition, we maintain borrowing capacity of approximately $1.01 billion with the Federal Reserve’s discount window that is secured by certain securities from our portfolio which are not pledged for other purposes.

We also had $63.7 million in subordinated debt, net of issuance costs. Our cash, off-balance sheet deposits, and borrowing capacity totaled $3.32 billion of immediately available funds, in addition to unpledged securities with two-day availability of $301.0 million for total liquidity within two-days of $3.62 billion, which provided coverage for 94% of total uninsured deposits.

Capital Resources

Total stockholders’ equity at March 31, 2025 was $736.0 million, compared to $707.7 million at December 31, 2024, an increase of $28.3 million. The increase was primarily driven by $25.0 million of net income and a $11.3 million improvement in accumulated other comprehensive loss due to the tax effected mark-to-market on our securities portfolio, offset by $4.4 million in dividends paid at $0.14 per outstanding share, and $3.5 million of common stock repurchases.

We are subject to various regulatory capital requirements administered by federal banking regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by federal banking regulators that, if undertaken, could have a direct material effect on our financial statements.

Basel III rules impose minimum capital requirements for bank holding companies and banks. The Basel III rules apply to all national and state banks and savings associations regardless of size and bank holding companies and savings and loan holding companies with consolidated assets of more than $3 billion. In order to avoid restrictions on capital distributions or discretionary bonus payments to executives, a covered banking organization must maintain the fully phased in “capital conservation buffer” of 2.5% on top of its minimum risk-based capital requirements. This buffer must consist solely of common equity Tier 1 risk-based capital, but the buffer applies to all three measurements (common equity Tier 1 risk-based capital, Tier 1 capital and total capital). The capital conservation is equal to 2.5% of risk-weighted assets.

The following table shows the regulatory capital ratios for the Bank and the Company at the dates indicated:


	Actual				For Capital Adequacy Purposes(1)				To Be Considered Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
(In thousands)
March 31, 2025
Consolidated:
Total capital to risk weighted assets	$	894,519	16.61	%	$	430,735	8.00	%	N/A		N/A
Tier 1 capital to risk weighted assets	768,553		14.27	%	323,051		6.00	%	N/A		N/A
Tier 1 capital to average assets	768,553		9.22	%	333,532		4.00	%	N/A		N/A
Common equity tier 1 to risk weighted assets	768,553		14.27	%	242,288		4.50	%	N/A		N/A
Bank:
Total capital to risk weighted assets	$	855,224	15.88	%	$	430,718	8.00	%	$	538,398	10.00	%
Tier 1 capital to risk weighted assets	792,982		14.73	%	323,039		6.00	%	430,718		8.00	%
Tier 1 capital to average assets	792,982		9.56	%	331,686		4.00	%	414,607		5.00	%
Common equity tier 1 to risk weighted assets	792,982		14.73	%	242,279		4.50	%	349,959		6.50	%

December 31, 2024
Consolidated:
Total capital to risk weighted assets	$	879,316	16.26	%	$	432,496	8.00	%	N/A		N/A
Tier 1 capital to risk weighted assets	751,394		13.90	%	324,372		6.00	%	N/A		N/A
Tier 1 capital to average assets	751,394		9.00	%	334,112		4.00	%	N/A		N/A
Common equity tier 1 to risk weighted assets	751,394		13.90	%	243,279		4.50	%	N/A		N/A


Bank:
Total capital to risk weighted assets	$	829,871	15.35	%	$	432,493	8.00	%	$	540,616	10.00	%
Tier 1 capital to risk weighted assets	765,652		14.16	%	324,370		6.00	%	432,493		8.00	%
Tier 1 capital to average assets	765,652		9.17	%	334,109		4.00	%	417,637		5.00	%
Common equity tier 1 to risk weighted assets	765,652		14.16	%	243,277		4.50	%	351,400		6.50	%

(1) Amounts are shown exclusive of the capital conservation buffer of 2.50%.

As of March 31, 2025, the Bank was categorized as “well capitalized” under the prompt corrective action measures and met the capital conservation buffer requirements.

Contractual Obligations

We have entered into contractual obligations in the normal course of business that involve elements of credit risk, interest rate risk and liquidity risk. The following table summarizes these relations by contractual maturity date as of March 31, 2025:


March 31, 2025
(In thousands)	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
FHLBNY Advances	$	5,952	$	5,952	$	—	$	—	$	—
Subordinated Debt	63,724		—		—		—		63,724

Operating Leases	17,659		8,035		9,624		—		—
Certificates of Deposit	226,404		185,796		38,948		1,487		173
	$	313,739	$	199,783	$	48,572	$	1,487	$	63,897

Investment Obligations

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

There have been no material changes in our market risk from that presented in the 2024 Annual Report. Our interest rate sensitivity position at March 31, 2025 is set forth in the table labeled “Evaluation of Interest Rate Risk” in Management’s Discussion and Analysis of Financial Condition and Results of Operation of this Quarterly Report on Form 10-Q and incorporated herein by this reference.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we have evaluated the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e), as of March 31, 2025. Based on such evaluations, our principal executive officer and principal financial officer concluded that, as of such date, our disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) that occurred during the quarter ended March 31, 2025 that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II

Item 1. Legal Proceedings.

We are subject to certain pending and threatened legal proceedings that arise out of the ordinary course of business. Additionally, we, like all banking organizations, are subject to regulatory examinations and investigations. Based upon management’s current knowledge, following consultation with legal counsel, in the opinion of management, there is no pending or threatened legal matter that would result in a material adverse effect on our consolidated financial condition or results of operation, either individually or in the aggregate.

Item 1A. Risk Factors.

Investing in shares of our common stock involves certain risks, including those identified and described in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as filed with the SEC on March 7, 2025, as well as cautionary statements contained in this report, including those under the caption “Cautionary Note Regarding Forward-Looking Statements,” risks and matters described elsewhere in this report and in our other filings with the SEC.

There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The following table contains information regarding purchases of our common stock during the three months ended March 31, 2025 by or on behalf of the Company or any “affiliate purchaser” as defined in Rule 10b-18(a)(3) under the Exchange Act:


	Issuer Purchases of Equity Securities
Period (Settlement Date)	Total number of shares purchased (1)	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value that may yet be purchased under plans or programs (2)
January 1 through January 31, 2025	61,157	$	34.19	42,541	$	17,183,353
February 1 through February 28, 2025	104,438	34.45		52,497	$	15,457,876
March 1 through March 31, 2025	23,124	32.09		10,000	$	40,000,000
Total	188,719	$	34.08	105,038

(1) Includes 16,475 shares withheld by the Company for options exercises, 67,206 shares withheld for taxes related to the exercise or vesting of options and stock awards, as well as 105,038 shares repurchased pursuant to the share repurchase program described in Note (2).

(2) Effective February 25, 2022, the Company’s Board of Directors approved an increase to the share repurchase program authorizing the repurchase of an aggregate amount up to $40 million of the Company's outstanding common stock (the "2022 Share Repurchase Program). The authorization did not require the Company to acquire any specified number of shares and can be suspended or discontinued without prior notice. Under the 2022 Share Repurchase Program, $3.5 million of common stock was purchased during the quarter ended March 31, 2025.

As of March 10, 2025, we do not intend to make further purchases under the 2022 Share Repurchase Program. Effective March 10, 2025, our Board of Directors authorized a new share repurchase program that allows the Company to repurchase up to $40 million of its common stock (the "2025 Share Repurchase Program"). The authorization did not require us to acquire any specified number of shares and can be suspended or discontinued without prior notice. Under the 2025 Share Repurchase Program, no common stock was purchased during the quarter ended March 31, 2025.

Item 5. Other Information

Securities Trading Plans of Directors and Executive Officers

On January 15, 2025, Sam Brown, Senior Executive Vice President, Chief Banking Officer, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 5,151 shares of the Company’s common stock, with such transactions to occur during sale periods beginning on or after April 15, 2025 and ending on the earlier of April 14, 2026 or the date on which all shares authorized for sale have been sold in conformance with the terms of the arrangement.

Item 6. Exhibits.


Exhibit No.						Description of Exhibit
3.1						Certificate of Incorporation of Amalgamated Financial Corp. (incorporated by reference to Exhibit 3.1 to Amalgamated Financial Corp.’s Current Report on Form 8-K filed with the SEC on March 1, 2021).

3.2						Bylaws of Amalgamated Financial Corp. (incorporated by reference to Exhibit 3.1 to Amalgamated Financial Corp.’s Current Report on Form 8-K filed with the SEC on April 8, 2024).

4.1						Pursuant to Item 601(b)(4)(iii)(A), other instruments that define the rights of holders of the long-term indebtedness of Amalgamated Financial Corp. and its subsidiaries that does not exceed 10% of its consolidated assets have not been filed; however, Amalgamated Financial Corp. agrees to furnish a copy of any such agreement to the SEC upon request.

10.1						Amended & Restated Employment Agreement, dated February 24, 2025, by and among Amalgamated Financial Corp., Amalgamated Bank, and Sean Searby (incorporated by reference to Exhibit 10.1 to Amalgamated Financial Corp.’s Current Report on Form 8-K filed with the SEC on February 27, 2025)

10.2						Amalgamated Financial Corp. Bonus Deferral and Deferred Stock Unit Program (incorporated by reference to Exhibit 10.1 to Amalgamated Financial Corp.’s Current Report on Form 8-K filed with the SEC on March 25, 2025)

10.3						Form of Deferred Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.2 to Amalgamated Financial Corp.’s Current Report on Form 8-K filed with the SEC on March 25, 2025)

10.4						Form of Deferred Restricted Stock Unit Award Agreement – Matching Grant (incorporated by reference to Exhibit 10.3 to Amalgamated Financial Corp.’s Current Report on Form 8-K filed with the SEC on March 25, 2025)

10.5						Amended & Restated Employment Agreement, dated March 25, 2025, by and among Amalgamated Financial Corp., Amalgamated Bank, and Priscilla Sims Brown (incorporated by reference to Exhibit 10.4 to Amalgamated Financial Corp.’s Current Report on Form 8-K filed with the SEC on March 25, 2025)

10.6						Lease Agreement, dated April 4, 2025, by and among Amalgamated Bank, and 99 Park Avenue Associate, L.P. (incorporated by reference to Exhibit 10.1 to Amalgamated Financial Corp.’s Current Report on Form 8-K filed with the SEC on April 8, 2025)

31.1						Rule 13a-14(a) Certification of the Chief Executive Officer

31.2						Rule 13a-14(a) Certification of the Chief Financial Officer

32.1						Section 1350 Certifications


101						Interactive data files for the Quarterly Report on Form 10-Q of Amalgamated Financial Corp. for the quarter ended March 31, 2025, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Financial Condition at March 31, 2025 and December 31, 2024, (ii) Consolidated Statements of Income for the quarters ended March 31, 2025 and 2024, (iii) Consolidated Statements of Comprehensive Income for the quarters ended March 31, 2025 and 2024, (iv) Consolidated Statements of Changes in Shareholders’ Equity for the quarters ended March 31, 2025 and 2024, (v) Consolidated Statements of Cash Flows for the quarters ended March 31, 2025 and 2024 and (vi) Notes to Consolidated Financial Statements (unaudited).

104						The cover page of Amalgamated Financial Corp.’s Form 10-Q Report for the quarter ended March 31, 2025, formatted in iXBRL (included with the Exhibit 101 attachments).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

AMALGAMATED FINANCIAL CORP.


May 6, 2025	By:	/s/ Priscilla Sims Brown
		Priscilla Sims Brown
		President and Chief Executive Officer
		(Principal Executive Officer)

May 6, 2025	By:	/s/ Jason Darby
		Jason Darby
		Chief Financial Officer
		(Principal Financial Officer)

May 6, 2025	By:	/s/ Leslie Veluswamy
		Leslie Veluswamy
		Chief Accounting Officer
		(Principal Accounting Officer)