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What changed in Amalgamated Financial Corp.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Amalgamated Financial Corp.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+408 added−412 removedSource: 10-K (2026-03-05) vs 10-K (2025-03-06)

Top changes in Amalgamated Financial Corp.'s 2025 10-K

408 paragraphs added · 412 removed · 323 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

125 edited+34 added−25 removed222 unchanged
Biggest changeThe loans are typically selected by the independent third-party reviewer except that the reviewer must review all of our leveraged loans, loans with over $20 million exposure, C&I loans with over $10 million exposure, all construction and farmland, all loans in our lowest pass-rate d risk rating with exposures over $1 million, municipality/public finance loans, and classified or criticized loans.
Biggest changeThe loans are typically selected by the independent third-party credit review firm except that the reviewer must review all loans with over $25 million exposure, a sample of pass-rated CRE loans with balances greater than $15 million, a sample of pass-rated CRE borrowers with relationship commitments greater than $25 million, a sample of C&I loans with relationship commitments exceeding $10 million exposure, a sample of construction, land development and farmland loans with commitments greater than $1 million, a sample of new individual loan commitments exceeding $5 million booked since the prior review, a sample of loans in our lowest pass-rate d risk rating with exposures over $10 million, and a sample of criticized or classified loans with relationship commitments greater than $1 million.
Using proven risk-based policies as a foundation, we specialize in banking for mission-aligned customer segments including businesses that promote net zero renewable energy, affordable housing, and other aligned or adjacent businesses. Our business focus is designed to promote or our reputation as a trustworthy banking partner reflective of our client segments.
Using proven risk-based policies as a foundation, we specialize in banking for mission-aligned customer segments including businesses that promote net zero renewable energy, affordable housing, and other aligned or adjacent businesses. Our business focus is designed to promote our reputation as a trustworthy banking partner reflective of our client segments.
Particularly, during the underwriting process and prior to presentation to the Management Credit Committee, the collateral properties on multifamily and CRE loans are visited by the originating relationship 9 manager.
Particularly, during the underwriting process and prior to presentation to the Management 9 Credit Committee, the collateral properties on multifamily and CRE loans are visited by the originating relationship manager.
In addition, the capital rules (and in particular, the capital conservation buffer, which was fully phased-in on January 1, 2019), require us to maintain 2.5% in Common Equity Tier 1 capital in order to pay a cash dividend.
In addition, the capital rules (and in particular, the capital conservation buffer, which was fully phased-in on January 1, 2019), require us to maintain a 2.5% capital conservation buffer in Common Equity Tier 1 capital in order to pay a cash dividend.
Possible sanctions that may be imposed in the event of such noncompliance include the suspension of individual employees, limitations on the business activities for specified periods of time, revocation of registration, and other censures and fines and the potential of civil litigation. USA PATRIOT Act The USA PATRIOT Act became effective on October 26, 2001 and amended the BSA.
Possible sanctions that may be imposed in the event of such noncompliance include the suspension of individual employees, limitations on the 26 business activities for specified periods of time, revocation of registration, and other censures and fines and the potential of civil litigation. USA PATRIOT Act The USA PATRIOT Act became effective on October 26, 2001 and amended the BSA.
Our loan operations are also subject to federal laws applicable to credit transactions, such as: • the Truth-In-Lending Act (“TILA”) and Regulation Z, governing disclosures of credit and servicing terms to consumer borrowers and including substantial new requirements for mortgage lending and servicing, as mandated by the Dodd-Frank Act; • the Home Mortgage Disclosure Act of 1975 and Regulation C, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the communities it serves, and requiring collection and disclosure of data about applicant and borrower characteristics to assist in identifying possible discriminatory lending patterns and enforcing antidiscrimination statutes; • the ECOA and Regulation B, prohibiting discrimination on the basis of race, color, religion, or other prohibited factors in any aspect of a credit transaction; • the Fair Credit Reporting Act of 1978, as amended by the Fair and Accurate Credit Transactions Act and Regulation V, as well as the rules and regulations of the FDIC governing the use of consumer reports and provision of information to credit reporting agencies, certain identity theft protections and certain credit and other disclosures; • the Fair Debt Collection Practices Act and Regulation F, governing the manner in which consumer debts may be collected by collection agencies and intending to eliminate abusive, deceptive, and unfair debt collection practices; 22 • the Real Estate Settlement Procedures Act (“RESPA”) and Regulation X, which governs aspects of residential mortgage loans, including the settlement and servicing process, dictates certain disclosures to be provided to consumers, and imposes other requirements related to compensation of service providers, insurance escrow accounts, and loss mitigation procedures; • The Secure and Fair Enforcement for Mortgage Licensing Act (“SAFE Act”) which mandates a nationwide licensing and registration system for residential mortgage loan originators.
Our loan operations are also subject to federal laws applicable to credit transactions, such as: • the Truth-In-Lending Act (“TILA”) and Regulation Z, governing disclosures of credit and servicing terms to consumer borrowers and including substantial new requirements for mortgage lending and servicing, as mandated by the Dodd-Frank Act; • the Home Mortgage Disclosure Act of 1975 and Regulation C, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the communities it serves, and requiring collection and disclosure of data about applicant and borrower characteristics to assist in identifying possible discriminatory lending patterns and enforcing antidiscrimination statutes; • the ECOA and Regulation B, prohibiting discrimination on the basis of race, color, religion, or other prohibited factors in any aspect of a credit transaction; • the Fair Credit Reporting Act of 1978, as amended by the Fair and Accurate Credit Transactions Act and Regulation V, as well as the rules and regulations of the FDIC governing the use of consumer reports and provision of information to credit reporting agencies, certain identity theft protections and certain credit and other disclosures; • the Fair Debt Collection Practices Act and Regulation F, governing the manner in which consumer debts may be collected by collection agencies and intending to eliminate abusive, deceptive, and unfair debt collection practices; • the Real Estate Settlement Procedures Act (“RESPA”) and Regulation X, which governs aspects of residential mortgage loans, including the settlement and servicing process, dictates certain disclosures to be provided to consumers, and imposes other requirements related to compensation of service providers, insurance escrow accounts, and loss mitigation procedures; • The Secure and Fair Enforcement for Mortgage Licensing Act (“SAFE Act”) which mandates a nationwide licensing and registration system for residential mortgage loan originators.
Notably, changes include: • expansion of coordination and information sharing efforts among the agencies tasked with administering anti-money laundering and countering the financing of terrorism requirements, including the Financial Crimes Enforcement Network (“FinCEN”), the primary federal banking regulators, federal law enforcement agencies, national security agencies, the intelligence community, and financial institutions; • providing additional penalties with respect to violations of BSA and enhancing the powers of FinCEN; • significant updates to the beneficial ownership collection rules and the creation of a registry of beneficial ownership which will track the beneficial owners of reporting companies which may be shared with law enforcement and financial institutions conducting due diligence under certain circumstances; • improvements to existing information sharing provisions that permit financial institutions to share information relating to Suspicious Activity Reports with foreign branches, subsidiaries, and affiliates (except those located in China, Russia, or certain other jurisdictions) for the purpose of combating illicit finance risks; and 24 • enhanced whistleblower protection provisions, allowing whistleblower(s) who provide original information which leads to successful enforcement of anti-money laundering laws in certain judicial or administrative actions resulting in certain monetary sanctions to receive up to 30 percent of the amount that is collected in monetary sanctions as well as increased protections; We are also subject to New York anti-money laundering laws and regulations.
Notably, changes include: • expansion of coordination and information sharing efforts among the agencies tasked with administering anti-money laundering and countering the financing of terrorism requirements, including the Financial Crimes Enforcement Network (“FinCEN”), the primary federal banking regulators, federal law enforcement agencies, national security agencies, the intelligence community, and financial institutions; • providing additional penalties with respect to violations of BSA and enhancing the powers of FinCEN; • significant updates to the beneficial ownership collection rules and the creation of a registry of beneficial ownership which will track the beneficial owners of reporting companies which may be shared with law enforcement and financial institutions conducting due diligence under certain circumstances; • improvements to existing information sharing provisions that permit financial institutions to share information relating to Suspicious Activity Reports with foreign branches, subsidiaries, and affiliates (except those located in China, Russia, or certain other jurisdictions) for the purpose of combating illicit finance risks; and • enhanced whistleblower protection provisions, allowing whistleblower(s) who provide original information which leads to successful enforcement of anti-money laundering laws in certain judicial or administrative actions resulting in certain monetary sanctions to receive up to 30 percent of the amount that is collected in monetary sanctions as well as increased protections; We are also subject to New York anti-money laundering laws and regulations.
The SAFE Act also prohibits individuals from engaging in the business of a residential mortgage loan originator without first obtaining and maintaining annually registration as either a federal or state licensed mortgage loan originator; • The Homeowners Protection Act (“HPA”), or the PMI Cancellation Act, provides requirements relating to private mortgage insurance (PMI) on residential mortgages, including the cancelation and termination of PMI, disclosure and notification requirements, and the requirement to return unearned premiums; • The FHA prohibits discrimination in all aspects of residential real-estate related transactions based on race or color, national origin, religion, sex, and other prohibited factors; • The Servicemembers Civil Relief Act (“SCRA”) and Military Lending Act (“MLA”), providing certain protections for servicemembers, members of the military, and their respective spouses, dependents and others; and • Section 106(c)(5) of the Housing and Urban Development Act requires making home ownership available to eligible homeowners.
The SAFE Act also prohibits individuals from engaging in the business of a residential mortgage loan originator without first obtaining and maintaining annually registration as either a federal or state licensed mortgage loan originator; • The Homeowners Protection Act (“HPA”), or the PMI Cancellation Act, provides requirements relating to private mortgage insurance (PMI) on residential mortgages, including the cancelation and termination of PMI, disclosure and notification requirements, and the requirement to return unearned premiums; • The FHA prohibits discrimination in all aspects of residential real-estate related transactions based on race or color, national origin, religion, sex, and other prohibited factors; • The Servicemembers Civil Relief Act (“SCRA”) and Military Lending Act (“MLA”), providing certain protections for servicemembers, members of the military, and their respective spouses, dependents and others; and 24 • Section 106(c)(5) of the Housing and Urban Development Act requires making home ownership available to eligible homeowners.
We publish annually in our CSR Report annual data on employee recruitment, advancement and retention, and an analysis of pay equity, which is an analysis conducted for the purposes of identifying whether there is the presence of statistically significant pay differences in our practices that potentially penalize any one demographic group or protected class versus another through the lens of specific legally defined categories.
We publish in our CSR Report annual data on employee recruitment, advancement and retention, and an analysis of pay equity, which is an analysis conducted for the purposes of identifying whether there is the presence of statistically significant pay differences in our practices that potentially penalize any one demographic group or protected class versus another through the lens of specific legally defined categories.
The Bank does not lend to, or invest our own money in, sectors where we do not have the personnel or institutional track record to properly assess the risks at the necessary level to make such credit determinations, nor sectors inconsistent with the risk-adjusted revenue growth strategies of the enterprise, as prescribed by our Risk Appetite Statement and reflected in the Bank’s Credit and Investment Policy.
The Bank does not lend to, or invest our own money in, sectors where we do not have the personnel or institutional track record to properly assess the risks at the necessary level to make such credit determinations, nor sectors inconsistent with the risk-adjusted revenue growth strategies of the enterprise, as prescribed by our Risk Appetite Statement and reflected in the Bank’s Credit Risk Policy.
With the 2023 impact score of 155.3, Amalgamated Bank has secured important external validation for our commitment to be America's socially responsible bank. Through our institutional investing platform, we regularly engage portfolio companies on climate transition, workplace fairness and other matters in accordance with our fiduciary duties as a trustee.
With the 2023 impact score of 155.3, Amalgamated Bank has secured important external validation for its commitment to be America's socially responsible bank. Through our institutional investing platform, we regularly engage portfolio companies on climate transition, workplace fairness and other matters in accordance with our fiduciary duties as a trustee.
We have a robust governance process in place to maintain conservative credit standards and underwrite each loan on our balance sheet. 6 Commercial and Industrial Lending We take a relationship-based approach to our target customer loan origination strategy, as our bankers have developed a deep level of experience with our customers within our target customer base and their unique banking needs.
We have a robust governance process in place to maintain conservative credit standards and underwrite each loan on our balance sheet. Commercial and Industrial Lending We take a relationship-based approach to our target customer loan origination strategy, as our bankers have developed a deep level of experience with our customers within our target customer base and their unique banking needs.
Geographic Expansion We consider strategic expansions into new geographic markets that share the same characteristics as our other current markets with a dense constituency of socially responsible organizations and individuals. We demonstrated our ability to grow organically through our expansion into Washington, D.C. and through the completed acquisition of New Resource Bank in 2018, based in San Francisco.
Geographic Expansion We consider strategic expansions into new geographic markets that share the same characteristics as our other current markets with a dense constituency of socially responsible organizations and individuals. We demonstrated our ability to grow through our expansion into Washington, D.C. and through the completed acquisition of New Resource Bank in 2018, based in San Francisco.
Our Loan Quality Committee is our executive and senior management governing body for monitoring loans that have classified or criticized regulatory risk ratings, or as determined by our Chief Credit Risk Officer or Senior Credit Officers. Criticized loans are special mention loans as they show potential weakness that may result in the deterioration of future repayment.
Our Loan Quality Committee is our executive and senior management governing body for monitoring loans that have classified or criticized regulatory risk ratings, or as determined by our Chief Credit Risk Officer or Senior Credit Officers. 10 Criticized loans are special mention loans as they show potential weakness that may result in the deterioration of future repayment.
A well-capitalized institution: • has total risk-based capital ratio of 10% or greater; and • has a Tier 1 risk-based capital ratio of 8% or greater; and • has a common equity Tier 1 risk-based capital ratio of 6.5% or greater; and • has a leverage capital ratio of 5% or greater; and • is not subject to any order or written directive to meet and maintain a specific capital level for any capital measure. • Adequately Capitalized —The institution meets the required minimum level for each relevant capital measure.
A well-capitalized institution: • has total risk-based capital ratio of 10% or greater; and • has a Tier 1 risk-based capital ratio of 8% or greater; and • has a common equity Tier 1 risk-based capital ratio of 6.5% or greater; and • has a leverage capital ratio of 5% or greater; and 21 • is not subject to any order or written directive to meet and maintain a specific capital level for any capital measure. • Adequately Capitalized —The institution meets the required minimum level for each relevant capital measure.
On November 29, 2024, the Company and the OPEIU entered into a new Collective Bargaining Agreement, which (i) extended the term of the Collective Bargaining Agreement to June 30, 2026, (ii) provided for a 3.5% wage increase per annum for the term of the Agreement, and (iii) made certain modifications to reflect improved terms, inclusive of a healthcare reimbursement.
On November 29, 2024, the Company and 12 the OPEIU entered into a new Collective Bargaining Agreement, which (i) extended the term of the Collective Bargaining Agreement to June 30, 2026, (ii) provided for a 3.5% wage increase per annum for the term of the Agreement, and (iii) made certain modifications to reflect improved terms, inclusive of a healthcare reimbursement.
This provision would give depositors a preference over general and subordinated creditors and stockholders in the event a receiver is appointed to distribute the assets of our Company. Any capital loans by a bank holding company to any of its subsidiary banks are subordinate in right of payment to deposits and to certain other indebtedness of such subsidiary bank.
This provision would 17 give depositors a preference over general and subordinated creditors and stockholders in the event a receiver is appointed to distribute the assets of our Company. Any capital loans by a bank holding company to any of its subsidiary banks are subordinate in right of payment to deposits and to certain other indebtedness of such subsidiary bank.
Our climate risk mitigation efforts are communicated through our Net Zero Climate Target Report which is our plan to measure our impact, to set targets that guide our business and the impact we have in the world, and to be transparent about what this will mean for our business and operations.
Our climate risk mitigation efforts are communicated through our Net Zero Climate Target Report, which is our plan to measure our impact, set targets that guide our business growth and the impact we have in the world, and to be transparent about what this will mean for our business and operations.
Physical risk can lead to increased credit risk by diminishing borrowers’ repayment capacity or impacting the value of collateral. We closely monitor the stability in the insurance markets and the impact of climate losses on the availability and pricing of insurance for the real estate sector.
Physical risk can lead to increased credit risk by diminishing borrowers’ repayment capacity or impacting the value of collateral. 11 We closely monitor the stability in the insurance markets and the impact of climate losses on the availability and pricing of insurance for the real estate sector.
The FDIC has developed a method for insured depository institutions to provide supplemental disclosure of the estimated fair market value of assets and liabilities, to the extent feasible and practicable, in any balance sheet, financial statement, report of condition or any other report of any insured depository institution.
The FDIC has developed a method for insured depository institutions to provide supplemental disclosure of the estimated fair market value of assets and liabilities, to the 19 extent feasible and practicable, in any balance sheet, financial statement, report of condition or any other report of any insured depository institution.
An adequately capitalized institution: • has a total risk-based capital ratio of 8% or greater; and • has a Tier 1 risk-based capital ratio of 6% or greater; and • has a common equity Tier 1 risk-based capital ratio of 4.5% or greater; and • has a leverage capital ratio of 4% or greater. 20 • Undercapitalized —The institution fails to meet the required minimum level for any relevant capital measure.
An adequately capitalized institution: • has a total risk-based capital ratio of 8% or greater; and • has a Tier 1 risk-based capital ratio of 6% or greater; and • has a common equity Tier 1 risk-based capital ratio of 4.5% or greater; and • has a leverage capital ratio of 4% or greater. • Undercapitalized —The institution fails to meet the required minimum level for any relevant capital measure.
In addition, the FDIC 18 could terminate our deposit insurance if it determines that our financial condition was unsafe or unsound or that we engaged in unsafe or unsound practices that violated an applicable rule, regulation, order or condition enacted or imposed on us by our regulators.
In addition, the FDIC could terminate our deposit insurance if it determines that our financial condition was unsafe or unsound or that we engaged in unsafe or unsound practices that violated an applicable rule, regulation, order or condition enacted or imposed on us by our regulators.
As a result of increased competition, we believe that all existing banks must adapt and become more cost efficient. Meanwhile, corresponding changes in the regulatory framework have 4 resulted in increasing cost burden on banking institutions.
As a result of increased competition, we believe that all existing banks must adapt and become more cost efficient. Meanwhile, corresponding changes in the regulatory framework have resulted in increasing cost burden on banking institutions.
New York Law As a New York-chartered bank, New York law governs our licensing and regulation, including organizational and capital requirements, fiduciary powers, investment authority, branch offices and electronic terminals, declaration of dividends, changes of control and mergers, out of state activities, interstate branching and banking, debt offerings, borrowing limits, limits on loans to one obligor, liquidation, sale of shares or options in Amalgamated to its directors, officers, employees and others, the purchase by Amalgamated of its own shares, and the issuance of capital notes or debentures.
New York Law As a New York-chartered bank, New York law governs our licensing and regulation, including organizational and capital requirements, fiduciary powers, investment authority, branch offices and electronic terminals, cybersecurity standards declaration of dividends, changes of control and mergers, out of state activities, interstate branching and banking, debt offerings, borrowing limits, limits on loans to one obligor, liquidation, sale of shares or options in Amalgamated to its directors, officers, employees and others, the purchase by Amalgamated of its own shares, and the issuance of capital notes or debentures.
Our business strategy involves us growing our business by earning the trust of these customers through a demonstrated dedication to our shared values—these mission-aligned customers seek our expertise in order to obtain various forms of specialty lending.
Our business strategy involves us growing our business by earning the trust of these customers through a demonstrated dedication to our shared values 6 —these mission-aligned customers seek our expertise in order to obtain various forms of specialty lending.
As a result, we believe we have become one of the leading banks of choice for many of these groups who, in turn, contribute a significant source of low-cost core deposits to the bank.
As a result, we believe we have become one of the leading banks of choice for many of these groups who, in turn, contribute a significant source of low- 5 cost core deposits to the bank.
These market dynamics have increased the number of non-bank competitors and have increased customer awareness of product and service differences among bank and non-bank competitors. We primarily face competition from the five major categories of competitors listed below.
These market dynamics have increased the number of non-bank competitors and have increased customer awareness of product and service differences among bank and non-bank competitors. 4 We primarily face competition from the five major categories of competitors listed below.
The NYDFS also has broad powers to enforce compliance with New York laws and regulations. Community Reinvestment Act Requirements We are subject to certain requirements and reporting obligations under the Community Reinvestment Act (“CRA”).
The NYDFS also has broad powers to enforce compliance with New York laws and regulations. 22 Community Reinvestment Act Requirements We are subject to certain requirements and reporting obligations under the Community Reinvestment Act (“CRA”).
We are dedicated to continuously enhancing our cybersecurity measures through a multi-layered defense strategy that safeguards customer and confidential data. By actively monitoring the cybersecurity threat landscape, especially within the financial services sector, we stay ahead of emerging trends and threats. Our Information Security Department diligently identifies and assesses risks, implementing appropriate mitigating controls.
We are dedicated to continuously enhancing our cybersecurity measures through a multi-layered defense strategy that safeguards customers and confidential data. By actively monitoring the cybersecurity threat landscape, especially within the financial services sector, we stay ahead of emerging trends and threats. Our Information Security Department diligently identifies and assesses risks, implementing appropriate mitigating controls.
The following is a list of the criteria for each PCA capital category: • Well Capitalized —The institution exceeds the required minimum level for each relevant capital measure.
The following is a list of the standard criteria for each PCA capital category: • Well Capitalized —The institution exceeds the required minimum level for each relevant capital measure.
Our underwriting methodology emphasizes analysis of global cash flow coverage, property cash flow in the case of real estate loans, loan to collateral value, and obtaining personal guaranties where appropriate. For project finance transactions, consideration of developer experience and financial stability and quality of off take contracts is paramount.
Our underwriting methodology emphasizes analysis of enterprise cash flow coverage, property cash flow in the case of real estate loans, loan to collateral value, and obtaining personal guaranties where appropriate. For project finance transactions, consideration of developer experience and financial stability and quality of off take contracts is paramount.
Our specialty lending includes bridge financing guaranteed by philanthropic grants, financing for owner-occupied union facilities, loans to affordable housing construction funds administered by leading Community Development Financial Institutions Funds, loans for commercial solar deployment and other renewable power and energy efficiency projects, and loans to political campaigns.
Our specialty lending includes bridge financing guaranteed by philanthropic grants, financing for owner-occupied union facilities, loans to affordable housing construction funds administered by leading Community Development Financial Institutions Funds, loans for commercial solar deployment and other renewable power and energy efficiency projects, and loans to political organizations.
Diversity is important to us and is a contributing factor to our ability to deliver on our growth strategy by ensuring a wide range of client acquisition opportunities. Additionally, our Board of Directors is currently comprised of seven women, four racially or ethnically diverse members, and one LGBTQ+ member.
Diversity is important to us and is a contributing factor to our ability to deliver on our growth strategy by ensuring a wide range of client acquisition opportunities. Additionally, our Board of Directors is currently comprised of seven women, five racially or ethnically diverse members, and one LGBTQ+ member.
The information on our website is not incorporated by reference into this report. 13 SUPERVISION AND REGULATION Both the Company and the Bank are subject to extensive banking regulations that impose restrictions on and provide for general regulatory oversight of their operations.
The information on our website is not incorporated by reference into this report. 14 SUPERVISION AND REGULATION Both the Company and the Bank are subject to extensive banking regulations that impose restrictions on and provide for general regulatory oversight of their operations.
Our CRE exposure is also predominantly in the New York metropolitan area and includes loans on office buildings, owner-occupied office buildings, retail centers, industrial facilities, mixed-use buildings, and education centers, with an average current LTV of 42%.
Our CRE exposure is also predominantly in the New York metropolitan area and includes loans on office buildings, owner-occupied office buildings, retail centers, industrial facilities, mixed-use buildings, and education centers, with an average current LTV of 45%.
For the years ended December 31, 2024 and December 31, 2023, we generated $15.2 million and $15.2 million of investment and trust fees, respectively. Asset Allocation Our target customer base provides us with what has historically been a stable source of low-cost core deposits, with generally limited credit needs. Therefore, we have historically had a substantial amount of excess liquidity.
For the years ended December 31, 2025 and December 31, 2024, we generated $16.2 million and $15.2 million of investment and trust fees, respectively. Asset Allocation Our target customer base provides us with what has historically been a stable source of low-cost core deposits, with generally limited credit needs. Therefore, we have historically had a substantial amount of excess liquidity.
Specifically, the guidance states that such institutions have (1) total CRE loans representing 300% or more of the institution’s total capital and (2) the outstanding balance of such institution’s CRE loan portfolio has increased by 50% or more during the prior 36 months. 28 Effect of Governmental Monetary Policies Our earnings are affected by domestic economic conditions and the monetary policies of the U.S. and its agencies.
Specifically, the 2006 CRE Guidance states that such institutions have (1) total CRE loans representing 300% or more of the institution’s total capital and (2) the outstanding balance of such institution’s CRE loan portfolio has increased by 50% or more during the prior 36 months. 29 Effect of Governmental Monetary Policies Our earnings are affected by domestic economic conditions and the monetary policies of the U.S. and its agencies.
Residential Real Estate Our portfolio of originated real estate loans to individuals is based primarily in our geographic markets, but also a minority of real estate loans are to individuals outside our geographic markets, some of which are affinity mortgage programs we have developed for members of certain commercial customers, such as the Service Employees International Union and American Federation of Teachers.
Residential Real Estate Our portfolio of originated one-to-four family real estate loans to individuals is based primarily in our geographic markets, but also a minority of residential loans are to individuals outside our geographic markets, some of which are affinity mortgage programs we have developed for members of certain commercial customers, such as the Service Employees International Union and American Federation of Teachers.
Our deposit strategy enables us to attract commercial depositors that also borrow and invest with us. Our total deposit growth has increased at a 7.7% compound annual growth rate over the last five years. We believe our reputation within our target customer base positions us well to sustain our growth trajectory.
Our deposit strategy enables us to attract commercial depositors that also borrow and invest with us. Our total deposit growth has increased at a 5.8% compound annual growth rate over the last five years. We believe our reputation within our target customer base positions us well to sustain our growth trajectory.
Financial institutions must comply with requirements regarding risk-based procedures for conducing ongoing customer due diligence, which requires us to take appropriate steps to understand the nature and purpose of customer relationships and identify and verify the identity of the beneficial owners of legal entity customers.
Financial institutions must comply with requirements regarding risk-based procedures for conducting ongoing customer due diligence, which requires us to 25 take appropriate steps to understand the nature and purpose of customer relationships and identify and verify the identity of the beneficial owners of legal entity customers.
For established smaller institutions, like us, the total base assessment rate is calculated by using supervisory ratings as well as (i) an initial base assessment rate, (ii) an unsecured debt adjustment (which can be positive or negative), and (iii) a brokered deposit adjustment.
For established smaller institutions, like us, the total base assessment rate is calculated by using supervisory ratings as well as (i) an initial base assessment rate, (ii) an unsecured debt adjustment (which can be positive or negative), (iii) a secured liability adjustment, and (iv) a brokered deposit adjustment.
To qualify for this additional 10%, we must perfect a security interest in the collateral and the collateral must have a market value at all times of at least 100% of the loan amount that exceeds 15% of our unimpaired capital and unimpaired surplus. At December 31, 2024, our regulatory limit on loans-to-one borrower was approximately $123 million.
To qualify for this additional 10%, we must perfect a security interest in the collateral, and the collateral must have a market value at all times of at least 100% of the loan amount that exceeds 15% of our unimpaired capital and unimpaired surplus. At December 31, 2025, our regulatory limit on loans-to-one borrower was approximately $134 million.
Human Capital Management Our People As of December 31, 2024, we had 429 employees, approximately 21% of whom are represented by a collective bargaining agreement. We consider our relationship with our employees to be good and have not experienced interruptions of operations due to labor disagreements. All employees are aware of our stance in supporting organized labor and workers' rights.
Human Capital Management Our People As of December 31, 2025, we had 450 employees, approximately 21% of whom are represented by a collective bargaining agreement. We consider our relationship with our employees to be good and have not experienced interruptions of operations due to labor disagreements. All employees are aware of our stance in supporting organized labor and workers' rights.
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 December 31, 2024.
Although we are no longer majority union-owned, the Amalgamated Clothing Workers of America’s successor, Workers United, an affiliate of the Service Employees International Union that represents workers in the textile, distribution, food service and gaming industries, remains a significant stockholder, holding approximately 38% of our equity as of December 31, 2025.
We intend to continue evaluating opportunities to efficiently expand our geographic footprint into other large metropolitan areas throughout the United States. 8 Trust and Investment Management Business We have been dedicated to serving the investment needs of our institutional clients for more than 40 years.
We intend to continue evaluating opportunities to efficiently expand our geographic footprint into other large metropolitan areas throughout the United States. 8 Trust and Investment Management Business Our Trust and Investment Management business has been dedicated to serving the investment needs of our institutional clients for more than 50 years.
Our business, financial condition, results of operations or prospects may be adversely affected, perhaps materially, as a result. 29
Our business, financial condition, results of operations or prospects may be adversely affected, perhaps materially, as a result. 30
These longer-term impacts and events have broad material implications on business operations, supply chains, distribution channels, customers, and markets.
These impacts and events have broad material implications on business operations, supply chains, distribution channels, customers, and markets.
Unsecured loans to one person generally may not exceed 15% of the sum of our capital stock, allowance and capital notes and debentures, and both secured and unsecured loans to one person (excluding certain secured lending and letters of credit) at any given time generally may not exceed 25% of the sum of our capital stock, allowance and capital notes and debentures.
Unsecured loans to one person generally may not exceed 15% of the sum of our capital stock, surplus fund and undivided profits, allowance and capital notes and debentures, and both secured and unsecured loans to one person (excluding certain secured lending and letters of credit) at any given time generally may not exceed 25% of the sum of our capital stock, surplus fund and undivided profits allowance and capital notes and debentures.
The Company owns 100% of the outstanding capital stock of the Bank, and is considered to be a bank holding company registered under the federal Bank Holding Company Act of 1956 (the “BHC Act”).
Amalgamated Financial Corp. The Company owns 100% of the outstanding capital stock of the Bank, and is considered to be a bank holding company registered under the federal Bank Holding Company Act of 1956 (the “BHC Act”).
We bolstered our efforts in the Washington, D.C. market in 2012 and have generated a 8% compound annual deposit growth rate during the five-year period ended December 31, 2024. Additionally, following the successful acquisition of New Resource Bank in 2018, we have become a trusted commercial lender in San Francisco and established ourselves in Boston.
We bolstered our efforts in the Washington, D.C. market in 2012 and have generated a 6% compound annual deposit growth rate during the five-year period ended December 31, 2025. Additionally, following the successful acquisition of New Resource Bank in 2018, we have become a trusted commercial lender in San Francisco. In addition, we established ourselves in Boston in 2020.
Under the USA PATRIOT Act, FinCEN can send Amalgamated lists of the names of persons suspected of involvement in terrorist activities or money laundering. Amalgamated may be requested to search its records for any relationships or transactions with persons on those lists.
Under the USA PATRIOT Act, FinCEN can send Amalgamated lists of the names of persons suspected of involvement in terrorist activities or money laundering. Amalgamated may be requested to search its records for any relationships or transactions with persons on those lists. If we find any relationships or transactions, we must report those relationships or transactions to FinCEN.
The success of our deposit gathering strategy has enabled us to become a primarily core deposit-funded institution, resulting in a lower cost funding base. Core deposits, which include checking accounts, money market accounts, and savings accounts, totaled $6.94 billion as of December 31, 2024 and represented 97% of total deposits.
The success of our deposit gathering strategy has enabled us to become a primarily core deposit-funded institution, resulting in a lower cost funding base. Core deposits, which include checking accounts, money market accounts, and savings accounts, totaled $7.75 billion as of December 31, 2025 and represented 97% of total deposits.
The Dodd-Frank Act requires the federal banking agencies and the SEC to establish joint regulations or guidelines prohibiting incentive-based payment arrangements at specified regulated entities, such as us, having at least $1 billion in total assets that encourage inappropriate risk-taking by providing an executive officer, employee, director or principal stockholder with excessive compensation, fees, or benefits or that could lead to material financial loss to the entity.
Any deficiencies in our compensation practices could lead to supervisory or enforcement actions by the FDIC. 28 The Dodd-Frank Act requires the federal banking agencies and the SEC to establish joint regulations or guidelines prohibiting incentive-based payment arrangements at specified regulated entities, such as us, having at least $1 billion in total assets that encourage inappropriate risk-taking by providing an executive officer, employee, director or principal stockholder with excessive compensation, fees, or benefits or that could lead to material financial loss to the entity.
Our teams of dedicated bankers have a strong familiarity with the segments they cover, and many have worked with organizations that make up our target customer base 5 before starting their career in banking. We believe our deep understanding of these segments, customized solutions and relationship-based, personalized service model enable us to address our customers’ unique banking needs.
Our teams of dedicated bankers have expertise with the segments they cover, and many have worked with or within organizations that make up our target customer base before starting their career in banking. We believe our deep understanding of these segments, customized solutions and relationship-based, personalized service model enable us to address our customers’ unique banking needs.
Also, in the case of most income-property loans, we require that borrowers are special purpose entities. Our Board of Directors has delegated oversight responsibility for our credit risk functions to its Credit Policy Committee, which is responsible for setting our credit risk appetite and approving our credit policy.
Also, in the case of most income-property loans, we require that borrowers are special purpose entities. Our Board of Directors has delegated oversight responsibility for our credit risk functions to its Credit Policy Committee, which is responsible for setting our credit risk appetite and approving our credit policy. This policy is updated periodically and reviewed in its entirety annually.
This relief has been extended to the earlier of January 1, 2026, or the effective date of a final FRB rule having a revision to Regulation O that addresses the treatment of extensions of credit by a bank to fund complex-controlled portfolio companies that are insiders of the bank.
This relief has been extended to the effective date of a final FRB rule having a revision to Regulation O that addresses the treatment of extensions of credit by a bank to fund complex-controlled portfolio companies that are insiders of the bank.
The Bank's Senior Credit Officer - CRE selects the appraising individual or firm (from a Bank-approved list), orders the appraisal, then engages an unrelated appraiser to conduct a formal appraisal review of the submitted appraisal report. The full process is managed by the Credit Risk Management Group.
The Bank's Senior CRE Credit Officer (in his dual-capacity as Chief Appraiser) selects the appraising individual or firm (from a Bank-approved list), orders the appraisal, then engages an unrelated appraiser to conduct a formal appraisal review of the submitted appraisal report. The full process is managed by the Credit Risk Management Group.
Our current infrastructure provides the necessary scale to increase our market presence among corporations, endowments, foundations and family offices. Invesco serves as our primary investment management subadvisor, bringing significant scale and experience to our investment management business, with over $1.59 trillion in assets under management, as of December 2024.
Our current infrastructure provides the necessary scale to increase our market presence among corporations, endowments, foundations and family offices. Invesco serves as our primary investment management subadvisor, bringing significant scale and experience to our investment management business, with over $2.17 trillion in assets under management, as of December 2025.
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 86.1% carry AAA credit ratings and 13.9% carry A credit ratings or higher. As of December 31, 2024, our securities portfolio has a weighted average yield of 4.86% and an estimated weighted average life of 6 years.
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 86.2% carry AAA credit ratings and 13.8% carry A credit ratings or higher. As of December 31, 2025, our securities portfolio has a weighted average yield of 4.87% and an estimated weighted average life of 5.6 years.
The law requires each federal banking agency to promulgate regulations defining the following five categories in which an insured depository institution will be placed, based on the level of capital ratios: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” or “critically undercapitalized.” As of December 31, 2024, our capital ratios exceeded the minimum ratios established for a “well capitalized” institution.
The law requires each federal banking agency to promulgate regulations defining the following five categories in which an insured depository institution will be placed, based on the level of capital ratios: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” or “critically undercapitalized.” As of December 31, 2025, our capital ratios exceeded the standard minimum ratios established for a “well capitalized” institution, which are more rigorous than the ratios established for qualifying community banking organizations.
We are committed to 100% renewable energy across our corporate footprint where attainable. In 2024, Amalgamated Bank received recertification by B Labs USA, allowing it to promote itself to clients and the public as a B Corporation TM certified business. The median score of an ordinary business is 50.9, and the 2019 certification gave Amalgamated Bank a score of 115.1.
We are committed to 100% renewable energy across our corporate footprint where attainable. Amalgamated Bank maintains a certification by B Labs USA, allowing it to promote itself to clients and the public as a B Corporation TM certified business. The median score of an ordinary business is 50.9.
Department of the Treasury, is responsible for helping to ensure that U.S. entities do not engage in transactions with “enemies” of the United States, as defined by various Executive Orders and Acts of Congress.
The Office of Foreign Assets Control The Office of Foreign Assets Control (“OFAC”), which is an office in the U.S. Department of the Treasury, is responsible for helping to ensure that U.S. entities do not engage in transactions with “enemies” of the United States, as defined by various Executive Orders and Acts of Congress.
We are committed to fostering strong client relationships and unparalleled understanding of our clients’ goals and objectives. Our investment strategies consist of both index and actively-managed portfolios spanning across Equity and Fixed Income asset classes. As of December 31, 2024, we had $35.02 billion of assets under custody and $14.62 billion of assets under management.
We are committed to fostering strong client relationships and unparalleled understanding of our clients’ goals and objectives. Our investment strategies consist of both index and actively-managed portfolios spanning across Equity and Fixed Income asset classes. As of December 31, 2025, we had $38.63 billion of assets under custody and $16.63 billion of assets under management.
The halt is likely to be challenged through litigation. Anti-Money Laundering Regulation As a financial institution, we must maintain anti-money laundering programs that include established internal policies, procedures and controls, a designated compliance officer, an ongoing employee training program, and testing of the program by an independent audit function.
Anti-Money Laundering Regulation As a financial institution, we must maintain anti-money laundering programs that include established internal policies, procedures and controls, a designated compliance officer, an ongoing employee training program, and testing of the program by an independent audit function.
In June 2010, the federal banking agencies jointly adopted the Guidance on Sound Incentive Compensation Policies (“GSICP”). The GSICP intended to ensure that banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking.
In June 2010, the federal banking agencies jointly adopted the Guidance on Sound Incentive Compensation Policies (“GSICP”), which remains the primary framework for overseeing incentive compensation at banks. The GSICP intended to ensure that banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking.
Our total deposit base is composed of 40% non-interest-bearing accounts and has an average cost of deposits of only 153 basis points for the year ended December 31, 2024.
Our total deposit base is composed of 41% non-interest-bearing accounts and has an average cost of deposits of only 160 basis points for the year ended December 31, 2025.
The CFPB has broad authority to regulate the offering and provision of consumer financial products and services. The CFPB has the authority to supervise and examine depository institutions with more than $10 billion in assets for compliance with federal consumer laws.
The CFPB is an independent regulatory authority housed within the Federal Reserve, with broad authority to regulate the offering and provision of consumer financial products and services. The CFPB has the authority to supervise and examine depository institutions with more than $10 billion in assets for compliance with federal consumer laws.
The Bank owns a 99.6% equity interest and controls the operations of its subsidiary, Amalgamated Real Estate Management Company (“AREMCO”), which was formed to serve as a consolidated real estate investment trust holding certain of our purchased and originated loans. During the year ending December 31, 2024, the Board of Directors of AREMCO approved a plan of liquidation of AREMCO.
The Bank owns a subsidiary, Amalgamated Real Estate Management Company (“AREMCO”), which was formed to serve as a consolidated real estate investment trust holding certain of our purchased and originated loans. During the year ending December 31, 2024, the holders of the voting stock and the Board of Directors of AREMCO approved a plan of liquidation of AREMCO.
The growth of our commercial banking business has contributed to our trust, custody and investment management services business in recent years. As of December 31, 2024, we had over 1,000 custody accounts with $35.02 billion in assets under custody and approximately 500 investment management accounts with $14.62 billion in assets under management.
The growth of our commercial banking business has contributed to our trust, custody and investment management services business in recent years. As of December 31, 2025, we had over 1,000 custody accounts with $38.63 billion in assets under custody and approximately 500 investment management accounts with $16.63 billion in assets under management.
Our Management Credit Committee approval limit is $35 million, any loan over $35 million must be approved by the Credit Policy Committee. We regularly monitor concentration risk, which is the risk of lending too much to one particular customer or type of customer. Our loan policy establishes detailed concentration limits and sub limits by loan type and geography.
Our Management Credit Committee approval limit is $35 million; any loan over $35 million must be approved by the Credit Policy Committee or their approved delegate(s). We regularly monitor concentration risk, which is the risk of lending too much to one particular customer or type of customer.
Real Estate Loans Our real estate portfolio consists of loans to individuals and commercial businesses, including one-to-four family, multifamily, and CRE.
Real Estate Loans Our real estate portfolio consists of loans to individuals and commercial businesses, including residential, multifamily, and CRE.
Under Basel III, Tier 1 capital includes two components: CET1 capital and additional Tier 1 capital. The highest form of capital, CET1 capital, consists solely of common stock (plus related surplus), retained earnings, accumulated other comprehensive income, otherwise referred to as AOCI, and limited amounts of minority interests that are in the form of common stock.
The highest form of capital, CET1 capital, consists solely of common stock (plus related surplus), retained earnings, accumulated other comprehensive income, otherwise referred to as AOCI, and limited amounts of minority interests that are in the form of common stock.
If there are no comparable transactions, a bank’s (or one of its subsidiaries’) affiliate transaction must be on terms and under circumstances, including credit standards, that in good faith would be offered to, or would apply to, nonaffiliated companies. These requirements apply to all transactions subject to Section 23A as well as to certain other transactions.
If there are no comparable transactions, a bank’s (or one of its subsidiaries’) affiliate transaction must be on terms and under circumstances, including credit standards, that in good faith would be offered to, or would apply to, nonaffiliated companies.
The CRA Rule also updates CRA assessment areas to include activities associated with online and mobile banking, and adopts a metrics-based approach to CRA 21 evaluations of retail lending and community development financing. To date, a Texas court injunction is barring implementation of the CRA Rule.
The CRA Rule also updates CRA assessment areas to include activities associated with online and mobile banking, and adopts a metrics-based approach to CRA evaluations of retail lending and community development financing.
As of December 31, 2024, our deposit base consisted of $2.87 billion of checking deposits, $4.07 billion of other liquid deposits such as money market checking, savings and passbook deposits, $239.2 million of certificate of deposits, which also includes $0.5 million of brokered deposits. The vast majority of our commercial deposits are derived from socially responsible organizations.
As of December 31, 2025, our deposit base consisted of $3.23 billion of checking deposits, $4.51 billion of other liquid deposits such as money market checking, savings and passbook deposits, and $203.2 million of certificate of deposits, which includes $0.2 million of brokered deposits. The vast majority of our commercial deposits are derived from socially responsible organizations.
The affiliates of a bank include any holding company of the bank, any other company under common control with the bank (including any company controlled by the same stockholders who control the bank), any subsidiary of the bank that is itself a bank, any company in which the majority of the directors or trustees also constitute a majority of the directors or trustees of the bank or holding company of the bank, any company sponsored and advised on a contractual basis by the bank or an affiliate, and any mutual fund advised by a bank or any of the bank’s affiliates.
These requirements apply to all transactions subject to Section 23A as well as to certain other transactions. 18 The affiliates of a bank include any holding company of the bank, any other company under common control with the bank (including any company controlled by the same stockholders who control the bank), any subsidiary of the bank that is itself a bank, any company in which the majority of the directors or trustees also constitute a majority of the directors or trustees of the bank or holding company of the bank, any company sponsored and advised on a contractual basis by the bank or an affiliate, and any mutual fund advised by a bank or any of the bank’s affiliates.
Specifically, we are required to maintain the following minimum capital requirements: • a common equity Tier 1 (“CET1”) risk-based capital ratio of 4.5%; • a Tier 1 risk-based capital ratio of 6%; • a total risk-based capital ratio of 8%; and • a leverage ratio of 4%.
Specifically, we are required to maintain the following minimum capital requirements: • a common equity Tier 1 (“CET1”) risk-based capital ratio of 4.5%; • a Tier 1 risk-based capital ratio of 6%; • a total risk-based capital ratio of 8%; and • a leverage ratio of 4%. 20 Under Basel III, Tier 1 capital includes two components: CET1 capital and additional Tier 1 capital.
Our credit policy requires at least 40% of our loans to be reviewed by an independent third party to ensure that our assigned risk grades are appropriate. Our current engagement requires the independent third party to review at least 50% of our loans by exposure.
Our credit policy requires at least 50% of our loans to be reviewed by an independent third party credit review firm to ensure that our assigned risk ratings are appropriate.
The information on our website is not incorporated by reference in this report. 11 With respect to operational risk, we maintain continuity of operation plans that factor in extreme weather events and our ability to adapt to physical events that change our access to certain locations. This plan is maintained by management and reviewed by the Enterprise Risk Oversight Committee.
With respect to operational risk, we maintain business continuity plans that factor in extreme weather events and our ability to adapt to physical events that change our access to certain locations. This plan is maintained by management and reviewed by the Enterprise Risk Oversight Committee of the board on an annual basis.
Under the BHC Act, a bank holding company is generally permitted to engage in, or acquire direct or indirect control of more than 5% of the voting shares of any company engaged in, the following activities: • banking or managing or controlling banks; • furnishing services to or performing services for our subsidiaries; and • any activity that the Federal Reserve determines to be so closely related to banking as to be a proper incident to the business of banking. 14 Activities that the Federal Reserve has found to be so closely related to banking as to be a proper incident to the business of banking include: • factoring accounts receivable; • making, acquiring, brokering or servicing loans and usual related activities; • leasing personal or real property; • operating a non-bank depository institution, such as a savings association; • trust company functions; • financial and investment advisory activities; • conducting discount securities brokerage activities; • underwriting and dealing in government obligations and money market instruments; • providing specified management consulting and counseling activities; • performing selected data processing services and support services; • acting as agent or broker in selling credit life insurance and other types of insurance in connection with credit transactions; and • performing selected insurance underwriting activities.
Activities that the Federal Reserve has found to be so closely related to banking as to be a proper incident to the business of banking include: • factoring accounts receivable; • making, acquiring, brokering or servicing loans and usual related activities; • leasing personal or real property; • operating a non-bank depository institution, such as a savings association; • trust company functions; • financial and investment advisory activities; • conducting discount securities brokerage activities; • underwriting and dealing in government obligations and money market instruments; • providing specified management consulting and counseling activities; • performing selected data processing services and support services; • acting as agent or broker in selling credit life insurance and other types of insurance in connection with credit transactions; and • performing selected insurance underwriting activities.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAlthough we have developed, and continue to invest in, systems and processes that are designed to detect and prevent security breaches and cyber-attacks and regularly test our security, a breach of our systems, or those of processors, could result in losses to us or our customers; loss of business and/or customers; damage to our reputation; the incurrence of additional expenses (including the cost of notification to consumers, credit monitoring and forensics, and fees and fines imposed by the card networks); disruption to our business; our inability to grow our online services or other businesses; additional regulatory scrutiny or penalties; or our exposure to civil litigation and possible financial liability—any of which could have a material adverse effect on our business, financial condition and results of operations.
Biggest changeA breach of our systems, or those of processors, could result in financial losses, loss of customers or business, reputational harm, business disruption, increased expenses (including notification, remediation, and fines), regulatory scrutiny or penalties, litigation, or other adverse consequences, any of which could have a material adverse effect on our business, financial condition, and results of operations.
If, as a result of an exam, a banking agency were to determine that the financial condition, capital adequacy, asset quality, asset concentration, earnings prospects, management, liquidity sensitivity to market risk or other aspects of any of our operations has become unsatisfactory, or that we or our management are in violation of any law or regulation, the banking agency could take a number of different remedial actions as it deems appropriate.
If, as a result of an exam, a banking agency were to determine that the financial condition, capital adequacy, asset quality, asset concentration, earnings prospects, management, liquidity sensitivity to market risk or other aspects of any of our operations has 42 become unsatisfactory, or that we or our management are in violation of any law or regulation, the banking agency could take a number of different remedial actions as it deems appropriate.
Tariffs, retaliatory tariffs or other trade restrictions on products and materials that customers import or export, or a trade war or other related governmental actions related to tariffs, international trade agreements or policies or other trade restrictions have the potential to negatively impact our customers' costs, demand for their products, or the U.S. economy or certain sectors thereof and, thus, could adversely impact our business, financial condition and results of operations.
Tariffs, retaliatory tariffs or other trade restrictions on products and materials that customers import or export, or a trade war or other related governmental actions related to tariffs, international trade agreements or policies or other trade restrictions continue to have the potential to negatively impact our customers' costs, demand for their products, or the U.S. economy or certain sectors thereof and, thus, could adversely impact our business, financial condition and results of operations.
In addition, the Dodd-Frank Act directs the federal bank regulators to require that all companies that directly or indirectly control an insured 42 depository institution serve as a source of strength for the institution. Under these requirements, in the future, we could be required to provide financial assistance to the Bank if the Bank experiences financial distress.
In addition, the Dodd-Frank Act directs the federal bank regulators to require that all companies that directly or indirectly control an insured depository institution serve as a source of strength for the institution. Under these requirements, in the future, we could be required to provide financial assistance to the Bank if the Bank experiences financial distress.
We may not be successful in retaining our key personnel, and the unexpected loss of services of one or more of our key personnel could have a material adverse effect on our business because of their skill, customer relationships, knowledge of our markets, years of industry experience and the difficulty of promptly finding qualified replacement personnel.
We may not be successful in retaining our key personnel, and the unexpected loss of services of one or more of our key personnel could have a material adverse effect on our business because of their skill, customer relationships, knowledge of our markets, years of industry experience and the difficulty of promptly finding qualified 38 replacement personnel.
Our failure to assess any impairments or losses with respect to our securities could have a material adverse effect on our assets, business, cash flow, condition (financial or otherwise), liquidity, results of operations and prospects. Credit Risks If we fail to effectively manage credit risk, our business and financial condition will suffer. We must effectively manage credit risk.
Our failure to assess any impairments or losses with respect to our securities could have a material adverse effect on our assets, business, cash flow, condition (financial or otherwise), liquidity, results of operations and prospects. Credit Risks If we fail to effectively manage credit risk, our business and financial condition will suffer.
If we fail to comply with the final rules adopted by the CFPB, we may face reputational and litigation risks with respect to our PACE assessments. Our trust and investment management business may be negatively impacted by changes in economic and market conditions and clients may seek legal remedies for investment performance.
If we fail to comply with the final rules adopted by the CFPB, we may face reputational and litigation risks with respect to our PACE assessments. Our trust and investment management business may be negatively impacted by changes in economic and market conditions and clients may seek legal remedies for investment.
Our positions may have a material adverse effect on our business, financial condition or results of operations. 39 For example, we support the recruitment and hiring of people from all backgrounds, so that our workforce reflects the communities that we serve, and we support activities that promote an inclusive workforce.
Our positions may have a material adverse effect on our business, financial condition or results of operations. For example, we support the recruitment and hiring of people from all backgrounds, so that our workforce reflects the communities that we serve, and we support activities that promote an inclusive workforce.
Allegations that our ESG products contain 43 claims that have misled investors or consumers, or that the claims are subject to poor controls, even if ultimately unfounded, may fundamentally damage our reputation and our financial performance. Our financial condition may be affected negatively by the costs of litigation.
Allegations that our ESG products contain claims that have misled investors or consumers, or that the claims are subject to poor controls, even if ultimately unfounded, may fundamentally damage our reputation and our financial performance. Our financial condition may be affected negatively by the costs of litigation.
For more information, see “ Cautionary Note Regarding Forward-Looking Statements ” and “ Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities—Dividend Policy. ” 44 We have several significant investors whose individual interests may differ from yours.
For more information, see “ Cautionary Note Regarding Forward-Looking Statements ” and “ Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities—Dividend Policy. ” We have several significant investors whose individual interests may differ from yours.
In implementing, developing or marketing new lines of business, products, product enhancements or services, we may invest significant time and resources, although we may not assign the appropriate level of resources or expertise necessary to make these new lines of business, products, product enhancements or services successful or to realize their expected benefits.
In implementing, developing or marketing new lines of business, products, product enhancements or services, we may invest significant time and resources, although we may not assign the appropriate level of resources or expertise necessary to make these new lines of business, products, product enhancements or 40 services successful or to realize their expected benefits.
Conversely, a decrease in the general level of 31 interest rates, among other things, may lead to prepayments on our loan and mortgage-backed securities portfolios and increased competition for deposits, potentially reducing our deposit base.
Conversely, a decrease in the general level of interest rates, among other things, may lead to prepayments on our loan and mortgage-backed securities portfolios and increased competition for deposits, potentially reducing our deposit base.
These 38 factors include an economic downturn affecting our loan portfolio, adverse financial market conditions, adverse regulatory or judicial actions against labor unions, political organizations or not-for profits, or adverse regulatory actions against us.
These factors include an economic downturn affecting our loan portfolio, adverse financial market conditions, adverse regulatory or judicial actions against labor unions, political organizations or not-for profits, or adverse regulatory actions against us.
Our ability to pay dividends is subject to regulatory limitations and the Bank’s ability to pay dividends to us is also subject to regulatory limitations. The Company is a bank holding company that conducts substantially all of its operations through the Bank.
Our ability to pay dividends is subject to regulatory limitations and the Bank’s ability to pay dividends to us is also subject to regulatory limitations. 44 The Company is a bank holding company that conducts substantially all of its operations through the Bank.
In addition, inaccurate management assumptions, deterioration of economic conditions affecting borrowers, new information regarding existing loans, identification or deterioration of additional problem loans, acquisition of problem loans and other factors, both within and outside of our control, may require us to increase our ACL. 33 Operational and Business Risks We are at risk of increased losses from fraud.
In addition, inaccurate management assumptions, deterioration of economic conditions affecting borrowers, new information regarding existing loans, identification or deterioration of additional problem loans, acquisition of problem loans and other factors, both within and outside of our control, may require us to increase our ACL. 34 Operational and Business Risks We are at risk of increased losses from fraud.
This activism has caused and could cause increased scrutiny over our own corporate governance activities. Any failure, or perceived failure, in our own corporate governance practices could damage our reputation adversely affecting our business, results of operations or financial condition. Maintaining our reputation also depends on our ability to successfully prevent third-parties from infringing on our brand and associated trademarks.
This engagement has caused and could cause increased scrutiny over our own corporate governance activities. Any failure, or perceived failure, in our own corporate governance practices could damage our reputation adversely affecting our business, results of operations or financial condition. Maintaining our reputation also depends on our ability to successfully prevent third-parties from infringing on our brand and associated trademarks.
A significant portion of our securities portfolio is invested in GSE securities. As a result of uncertain domestic political conditions, including 30 potential future federal government shutdowns or the possibility of the federal government defaulting on its obligations for a period of time, investments in financial instruments issued or guaranteed by the federal government pose liquidity and credit risks.
A significant portion of our securities portfolio is invested in GSE securities. As a result of uncertain domestic political conditions, including potential future federal government shutdowns or the possibility of the federal government defaulting on its 31 obligations for a period of time, investments in financial instruments issued or guaranteed by the federal government pose liquidity and credit risks.
A significant percentage of our common stock is currently held by investment funds affiliated with an amalgamation of Workers United and numerous joint boards, locals or similar organizations authorized under the constitution of Workers United (the “Workers United Related Parties”). Workers United Related Parties own approximately 37% of our common stock.
A significant percentage of our common stock is currently held by investment funds affiliated with an amalgamation of Workers United and numerous joint boards, locals or similar organizations authorized under the constitution of Workers United (the “Workers United Related Parties”). Workers United Related Parties own approximately 38% of our common stock.
The final rule amends Regulation Z’s definition of credit to include residential PACE financings, prescribes ability-to-repay requirements, and implements other amendments and exemptions to clarify how other rules in Regulation Z apply. The final rule becomes effective on March 1, 2026.
The final rule amends Regulation Z’s definition of credit to include residential PACE financings, prescribes ability-to-repay requirements, and implements other amendments and exemptions to clarify how other rules in Regulation Z apply. The final rule became effective on March 1, 2026.
For example, our business is subject to joint federal bank agency rules, the GLBA, the NYDFS cybersecurity regulations, the CCPA, and the CPRA which, among other things: (i) impose certain limitations on our ability to share nonpublic personal information about our customers with nonaffiliated third parties; (ii) require that we provide certain disclosures to customers and others about our information collection, sharing and security practices and afford customers the right to “opt out” of any information sharing by us with nonaffiliated third parties (with certain exceptions); (iii) limit retention of customer data; (iv) require notification of certain data breaches be provided to consumers and, in some circumstances, regulators; (v) require notification of extortion payments and ransomware deployments; (vi) require enhanced governance of cyber risk, including risk assessments at least annually and whenever a change in the business or technology causes a material change to our cyber risk; and (vii) require that we develop, implement and maintain a written comprehensive information security program containing appropriate safeguards based on our size and complexity, the nature and scope of our activities, and the sensitivity of customer information we process, as well as plans for responding to data security breaches.
For example, our business is subject to joint federal bank agency rules, the GLBA, the NYDFS cybersecurity regulations, the CCPA, and the CPRA which, among other things: (i) impose certain limitations on our ability to share nonpublic personal information about our customers with nonaffiliated third parties; (ii) require that we provide certain disclosures to customers and others about our information collection, sharing and security practices, as well as any use of automated decision making for financial or lending services, and afford customers the right to “opt out” of any information sharing by us with nonaffiliated third parties (with certain exceptions) and automated decision making; (iii) limit retention of customer data; (iv) require notification of certain data breaches be provided to consumers and, in some circumstances, regulators; (v) require notification of extortion payments and ransomware deployments; (vi) require cyber audits and enhanced governance of cyber risk, including risk assessments at least annually and whenever a change in the business or technology causes a material change to our cyber risk; and (vii) require that we develop, implement and maintain a written comprehensive information security program containing appropriate safeguards based on our size and complexity, the nature and scope of our activities, and the sensitivity of customer information we process, as well as plans for responding to data security breaches.
Under various federal and state laws, we are responsible for safeguarding such information.
Under various federal and state laws, we are 36 responsible for safeguarding such information.
The process for determining whether impairment of a security is OTTI usually requires complex, subjective judgments about the future financial performance and liquidity of the issuer, any collateral underlying the security as well as our intent and ability to hold the security for a sufficient period of time to allow for any anticipated recovery in fair value in order to assess the probability of receiving all contractual principal and interest payments on the security.
The process for determining whether impairment of a security has experienced an OTTI usually requires complex, subjective judgments about the future financial performance and liquidity of the issuer, any collateral underlying the security as well as our intent and ability to hold the security for a sufficient period of time to allow for any anticipated recovery in fair value in order to assess the probability of receiving all contractual principal and interest payments on the security.
Our business could suffer if we experience employee work stoppages, union campaigns or other labor difficulties, and efforts by labor unions could divert management attention and adversely affect operating results. As of December 31, 2024, we had 429 employees, of which approximately 21% are represented by collective bargaining agreements or an employee union.
Our business could suffer if we experience employee work stoppages, union campaigns or other labor difficulties, and efforts by labor unions could divert management attention and adversely affect operating results. As of December 31, 2025, we had 450 employees, of which approximately 21% are represented by collective bargaining agreements or an employee union.
Economic pressure on consumers, including due to factors such as inflation and increased cost of goods due to tariffs on imports, as well as overall economic uncertainty may result in changes in consumer and business spending, borrowing and saving habits.
Economic pressure on consumers, including due to factors such as inflation and increased cost of goods due to tariff structures on imports, as well as overall economic uncertainty may result in changes in consumer and business spending, borrowing and saving habits.
If the models used to mitigate these risks are inadequate, or the assumption or estimates are inaccurate or otherwise flawed, we may fail to adequately protect against risks and may incur losses. Artifical Intelligence ("AI") models may amplify existing risks, given the increased complexity of financial modelling and the challenges in explaining the models.
If the models used to mitigate these risks are inadequate, or the assumption or estimates are inaccurate or otherwise flawed, we may fail to adequately protect against risks and may incur losses. Artificial Intelligence ("AI") models may amplify existing risks, given the increased complexity of financial modeling and the challenges in explaining the models.
If we fail to meet these minimum capital guidelines and other regulatory requirements, we may be restricted in the types of activities we may conduct and we may be prohibited from taking certain capital actions, such as paying dividends and repurchasing or redeeming capital securities.
From time to time, the regulators change these regulatory capital adequacy guidelines. If we fail to meet these minimum capital guidelines and other regulatory requirements, we may be restricted in the types of activities we may conduct and we may be prohibited from taking certain capital actions, such as paying dividends and repurchasing or redeeming capital securities.
Federal budget deficit concerns and the potential for political conflict over legislation to fund U.S. government operations and raise the U.S. government's debt limit may increase the possibility of a default by the U.S. government on its debt obligations, additional related credit-rating downgrades, or an economic recession in the U.S.
Fiscal challenges facing the U.S. government, such as the federal budget deficit concerns and the potential for political conflict over legislation to fund U.S. government operations and raise the U.S. government's debt limit may increase the possibility of a default by the U.S. government on its debt obligations, additional related credit-rating downgrades, or an economic recession in the U.S.
The fair value of our investment securities could fluctuate because of factors outside of our control, which could have a material adverse effect on us. As of December 31, 2024, the fair value of our investment securities portfolio was approximately $3.18 billion. Factors beyond our control could significantly affect the fair value of these securities.
The fair value of our investment securities could fluctuate because of factors outside of our control, which could have a material adverse effect on us. As of December 31, 2025, the fair value of our investment securities portfolio was approximately $3.22 billion. Factors beyond our control could significantly affect the fair value of these securities.
Risks Related to Privacy and Technology Information technology systems are critical to our business. Our business requires us to collect, process, transmit and store significant amounts of confidential information regarding our customers, employees and our own business, operations, plans and business strategies. We use various technology systems to manage our customer relationships, general ledger, securities investments, deposits, and loans.
Our business requires us to collect, process, transmit and store significant amounts of confidential information regarding our customers, employees and our own business, operations, plans and business strategies. We use various technology systems to manage our customer relationships, general ledger, securities investments, deposits, and loans.
There are continuing concerns related to, among other things, the level of U.S. government debt and fiscal actions that may be taken to address that debt, price fluctuations of key natural resources, the potential resurgence of economic and political tensions with China, the Russian invasion of Ukraine and increasing oil prices due to Russian supply disruptions, and the Israel-Hamas conflict, each of which may have a destabilizing effect on financial markets and economic activity.
There are continuing concerns related to, among other things, the level of U.S. government debt and fiscal actions that may be taken to address that debt, price fluctuations of key natural resources, U.S. intervention in Venezuela and its oil industry, U.S. military strikes and sanctions on Iran, the potential resurgence of economic and political tensions with China, the Russian invasion of Ukraine and increasing oil prices due to Russian supply disruptions, and the Israel-Hamas conflict, each of which may have a destabilizing effect on financial markets and economic activity.
The weakening of these standards for any reason, such as an attempt to attract higher yielding loans, a lack of discipline or diligence by our employees in underwriting and monitoring loans, the inability of our employees to adequately adapt policies and procedures to changes in economic or any other conditions affecting borrowers and the quality of our loan portfolio, may result in loan defaults, foreclosures and additional charge-offs and may necessitate that we significantly increase our allowance, each of which could adversely affect our net income. 32 We are subject to risk arising from conditions in the commercial real estate market.
The weakening of these standards for any reason, such as an attempt to attract riskier higher yielding loans, a lack of discipline or diligence by our employees in underwriting and monitoring loans, the inability of our employees to adequately adapt policies and procedures to changes in economic or any other conditions affecting borrowers and the quality of our loan portfolio, may result in loan defaults, foreclosures and additional charge-offs and may necessitate that we significantly increase our allowance, each of which could adversely affect our net income.
The vast majority of our operations and clients are located in New York City, Washington, D.C., and San Francisco. In addition, at December 31, 2024, 85.9% of the properties securing our CRE, multifamily, or construction loans outstanding were located in the states of New York and California, and in Washington, D.C.
The vast majority of our operations and clients are located in New York City, Washington, D.C., and San Francisco. In addition, at December 31, 2025, 82.4% of the properties securing our CRE, multifamily, or construction loans outstanding were located in the states of New York and California, and in Washington, D.C.
Our accounting policies and methods are fundamental to how we record and report our financial condition and results of operations. Our management must exercise judgment in selecting and applying many of these accounting policies and methods so they comply with GAAP and reflect management’s judgment of the most appropriate manner in which to report our financial condition and results.
Our management must exercise judgment in selecting and applying many of these accounting policies and methods so they comply with GAAP and reflect management’s judgment of the most appropriate manner in which to report our financial condition and results.
To the extent changes in the global political environment have a negative impact on us or on the markets in which we operate, our business, results of operations and financial condition could be materially and adversely impacted. Our operations and clients are concentrated in large metropolitan areas.
To the extent this uncertainty in U.S. trade policy and other changes in the global political environment have a negative impact on us, our customers or on the markets in which we operate, our business, results of operations and financial condition could be materially and adversely impacted. Our operations and clients are concentrated in large metropolitan areas.
The unique characteristic of PACE assessments is that the assessment is attached to the property rather than the individual borrower. Active programs for residential PACE financing exist in California, Florida and Missouri. As of December 31, 2024, we had a portfolio of $268.4 million in commercial PACE assessments and $927.5 million in residential PACE assessments.
The unique characteristic of PACE assessments is that the assessment is attached to the property rather than the individual borrower. Active programs for residential PACE financing exist in California, Florida and Missouri. As of December 31, 2025, we had a portfolio of $327.4 million in commercial PACE assessments and $953.2 million in residential PACE assessments.
We are exposed to higher credit risk related to our multifamily real estate lending in New York City. In 2019, the New York State legislature passed the Housing Stability and Tenant Protection Act of 2019, impacting about one million rent regulated apartment units.
We are exposed to higher credit risk related to our multifamily real estate lending in New York City. New York State's Housing Stability and Tenant Protection Act of 2019, impacts about one million rent regulated apartment units.
The majority of our loan portfolio is secured by real estate, 8.8% of which is commercial real estate. A decline in real estate values can negatively impact our ability to recover our investment should the borrower become delinquent.
The majority of our loan portfolio is secured by real estate, 33.2% of which is multifamily and 7.3% of which is commercial real estate. A decline in real estate values can negatively impact our ability to recover our investment should the borrower become delinquent.
Although our asset-liability management strategy is designed to control and mitigate exposure to the risks related to changes in the general level of market interest rates, those rates are affected by many factors outside of our control, including inflation, recession, unemployment, money supply, international disorder, instability in domestic and foreign financial markets and policies of various governmental and regulatory agencies, particularly the Federal Open Market Committee ("FOMC") of the Federal Reserve.
Accordingly, changes in the general level of market interest rates may adversely affect our net yield on interest-earning assets, loan origination volume and our overall results. 32 Although our asset-liability management strategy is designed to control and mitigate exposure to the risks related to changes in the general level of market interest rates, those rates are affected by many factors outside of our control, including inflation, recession, unemployment, money supply, international disorder, instability in domestic and foreign financial markets and policies of various governmental and regulatory agencies, particularly the Federal Open Market Committee ("FOMC") of the Federal Reserve.
Climate related disasters may have an effect on the performance of our business operations and asset quality which could adversely affect our financial condition and results of operations. There is an increasing concern over climate-related disasters on the impacts of business operations, asset quality, and earnings.
Climate related disasters may have an effect on the performance of our business operations and asset quality which could adversely affect our financial condition and results of operations. 35 Climate‑related disasters may adversely affect our business, asset quality, and earnings.
Further, potential implementation by the current administration of a regulatory reform agenda may be significantly different from that of the prior administration, impacting the rule making, supervision, examination and enforcement of the banking regulation agencies and our ability to respond to those changes.
The current presidential administration is implementing a regulatory reform agenda that is significantly different from that of the prior administration, impacting the rule making, supervision, examination and enforcement of the banking regulation agencies and our ability to respond to those changes.
A failure to maintain current technology and business processes could cause disruptions in our operations or cause our products and services to be less competitive, all of which could have a material adverse effect on our business, financial condition or results of operations.
A failure to maintain current technology and business processes could cause disruptions in our operations or cause our products and services to be less competitive, all of which could have a material adverse effect on our business, financial condition or results of operations. We expect regulatory risk and compliance costs from AI implementation to increase.
The potential costs, including strategic planning, litigation due to increased regulatory scrutiny or negative public sentiment, technology expenditures, and losses associated with climate related disasters are difficult to predict and could have a material adverse effect on our business, financial condition and results of operation. We are exposed to risks related to our PACE financings.
The potential costs associated with climate‑related risks—including strategic planning, regulatory scrutiny, litigation, technology investments, and disaster‑related losses—are difficult to predict and could have a material adverse effect on our business, financial condition, and results of operations. We are exposed to risks related to our PACE financings.
At December 31, 2024, our total multifamily loan exposure in New York State is approximately $951.4 million, of which approximately $697.3 million, or 73%, represents our portfolio’s composition of rent stabilized and rent controlled apartments in the New York multifamily market. Our consumer solar loans expose us to higher credit risk.
At December 31, 2025, our total multifamily loan exposure in New York State is approximately $1.01 billion, of which approximately $821.5 million, or 81%, represents our portfolio’s composition of rent stabilized and rent controlled apartments in the New York City multifamily market. Our consumer solar loans expose us to higher credit risk.
These restrictions may also result in increases in operating expenses and reductions in revenues that could have a material adverse effect on our financial condition, results of operations and our share price. We may be subject to more stringent capital requirements in the future.
These restrictions may also result in increases in operating expenses and reductions in revenues that could have a material adverse effect on our financial condition, results of operations and our share price. 39 We are subject to stringent capital requirements. We are subject to regulatory requirements specifying minimum amounts and types of capital that we must maintain.
We participate in a multi-employer non-contributory defined benefit pension plan for both our unionized and non-unionized employees, which could subject us to substantial cash funding requirements in the future. 34 We are required to make contributions to the Consolidated Retirement Fund, a multi-employer pension plan that covers both our unionized and non-unionized employees.
We participate in a multi-employer non-contributory defined benefit pension plan for both our unionized and non-unionized employees, which could subject us to substantial cash funding requirements in the future. We are required to contribute to the Consolidated Retirement Fund, a multi‑employer defined benefit pension plan covering both unionized and non‑unionized employees, and our related expense totaled $8.2 million in 2025.
As a result of such changes, whether promulgated or required by the FASB or other regulators, we could be required to change certain of the assumptions or estimates we have previously used in preparing our financial statements, which could negatively affect how we record and report our results of operations and financial condition generally. 41 Our accounting estimates and risk management processes and controls rely on analytical and forecasting techniques and models and assumptions, which may not accurately predict future events.
As a result of such changes, whether promulgated or required by the FASB or other regulators, we could be required to change certain of the assumptions or estimates we have previously used in preparing our financial statements, which could negatively affect how we record and report our results of operations and financial condition generally.
We could be adversely affected by a failure to establish and maintain effective internal controls over financial reporting. A failure in our internal controls could have a significant negative impact not only on our earnings, but also on the perception that customers, regulators and investors may have of us.
A failure in our internal controls could have a significant negative impact not only on our earnings, but also on the perception that customers, regulators and investors may have of us.
As of December 31, 2024, commercial real estate mortgage loans comprised approximately 8.8% of our loan portfolio. Commercial real estate mortgage loans generally involve a greater degree of credit risk than residential real estate mortgage loans because they typically have larger balances and are more affected by adverse conditions in the economy.
Commercial real estate mortgage loans generally involve a greater degree of credit risk than one-to-four family residential real estate mortgage loans because they typically have larger balances and are more affected by adverse conditions in the economy.
Our business is highly dependent on the successful and uninterrupted functioning of our information technology and telecommunications systems, third-party servicers' accounting systems and mobile and online banking platforms. We outsource many of our major systems, such as data processing, loan servicing, item/payment processing systems, and online banking platforms.
Our business depends on the reliable and uninterrupted operation of our information technology and telecommunications systems, including third‑party accounting systems and mobile and online banking platforms. We outsource many critical systems, including data processing, loan servicing, payment processing, and online banking platforms.
If any of these events occur, the financial performance of our trust and investment management business could be materially and adversely affected. The investment management contracts we have with our clients are terminable without cause and on relatively short notice by our clients, which makes us vulnerable to short term declines in the performance of the securities under our management.
The investment management contracts we have with our clients are terminable without cause and on relatively short notice by our clients, which makes us vulnerable to short term declines in the performance of the securities under our management. Our investment management contracts are generally terminable by clients without cause upon less than 30 days’ notice.
In June 2023, the federal banking agencies issued “Interagency Guidance on Third-Party Relationships: Risk Management”, which requires banks to “analyze the risks associated with each third-party relationship and to calibrate its risk management processes”. In addition, in July 2024, federal banking regulators issued a joint statement on banks’ arrangements with third parties to deliver bank deposit products and services.
In June 2023, the federal banking agencies issued “Interagency Guidance on Third‑Party Relationships: Risk Management”, requiring banks to “analyze the risks associated with each third-party relationship and to calibrate its risk management processes.” In July 2024, regulators also issued a joint statement addressing banks’ arrangements with third parties to deliver deposit products and services, concurrent with a request for information on bank‑fintech arrangements, following concerns regarding customer funds deposited through non‑bank entities without adequate controls.
Our reputation could be harmed if we lose our Certified B Corporation TM status, whether by choice or by our failure to meet B Lab’s certification requirements. 40 The name “Amalgamated” originated with our over a 100 year union history – the Amalgamated Clothing Workers of America – and, over the course of time, other entities use the name Amalgamated, some of which are related parties or affiliates of the Bank and some that are not legally related or affiliated.
The name “Amalgamated” originated with our over a 100 year union history – the Amalgamated Clothing Workers of America – and, over the course of time, other entities use the name Amalgamated, some of which are related parties or affiliates of the Bank and some that are not legally related or affiliated.
We are exposed to litigation and compliance risks related to our Socially Responsible Banking business model. We may become the target of public criticism, litigation and enforcement actions because of our ESG products and our social responsibility mission. For example, boycott regulations target financial institutions that will not lend or have made statements about not lending to certain industries.
We are exposed to litigation and compliance risks related to our Socially Responsible Banking business model. We may become the target of public criticism, litigation and regulatory and enforcement actions because of our ESG products and our social responsibility mission.
In addition, failure of third parties to comply with applicable laws and regulations, or fraud, misconduct, or material errors on the part of our employees or employees of any of these third parties could disrupt our operations or adversely affect our reputation.
In addition, third‑party noncompliance with applicable laws and regulations, or fraud, misconduct, or material errors by our employees or those of our service providers, could disrupt operations or adversely affect our reputation.
This rule enables greater competition among banks and non-banks for consumer market share, which could have a material adverse effect on our business, financial condition or results of operations. Difficulties in obtaining regulatory approval for acquisitions and in combining the operations of acquired entities with the Company’s own operations may prevent us from achieving the expected benefits from our acquisitions.
This rule enables greater competition among banks and non-banks for consumer market share, which could have a material adverse effect on our business, financial condition or results of operations.
We rely on third parties for internal and customer-facing services. The use of third parties may pose operational, compliance, and strategic risks to banks. The federal banking regulators expect banks implement controls to ensure that third parties perform their activities in compliance with applicable laws and regulations.
We rely on third parties to provide internal and customer‑facing services, which may expose us to operational, compliance, and strategic risks. Federal banking regulators expect banks to maintain risk‑based controls to ensure third parties comply with applicable laws and regulations.
The act generally limits a landlord’s ability to increase rents on rent-regulated apartments and makes it more difficult to convert rent-regulated apartments to market-rate apartments. As a result, the value of the collateral located in New York State securing our multi-family loans or the future net operating income of such properties could potentially become impaired.
As a result, the value of the collateral located in New York State securing our multi-family loans or the future net operating income of such properties could potentially become impaired.
While we have not experienced any material breaches of information security, such breaches may occur through intentional or unintentional acts by those having access or gaining access to our systems or our customers’ or counterparties’ confidential information, including employees.
While we have not experienced any material information security breaches, such breaches may occur as a result of intentional or inadvertent acts by individuals with authorized or unauthorized access to our systems or to confidential information of us, our customers, or counterparties, including employees.
For instance, our on-balance sheet deposits from political campaigns, PACs, and state and national party committee clients totaled $969.6 million, or 14% of total on-balance sheet deposits as of December 31, 2024 and decreased their deposit balances significantly after the last election campaign, resulting in short-term volatility in their deposit balances held with us through election cycles.
Their their deposit balances decreased significantly after the last election campaign, resulting in short-term volatility in their deposit balances held with us through election cycles. Additionally, our on-balance sheet deposits from labor unions totaled $2.05 billion, or 23% of total on-balance sheet deposits as of December 31, 2025.
Our estimated allowance for credit losses and fair value adjustments with respect to loans acquired in our acquisitions may prove to be insufficient to absorb actual losses in our loan portfolio, which may adversely affect our business, financial condition and results of operations.
Our estimated allowance for credit losses may prove to be insufficient to absorb actual losses in our loan portfolio, which may adversely affect our business, financial condition and results of operations. We maintain an allowance for credit losses ("ACL") that represents management’s judgment of current expected credit losses and risks inherent in our loan portfolio.
Adverse changes in the U.S. monetary policy or in economic conditions could materially and adversely affect us. On January 31, 2025 the FOMC issued a statement that it decided to maintain short-term interest rates at a range of 4.25% to 4.50%, and it now projects just two interest rate cuts in 2025, compared to earlier projections for four rate cuts.
Adverse changes in the U.S. monetary policy or in economic conditions could materially and adversely affect us. On January 28, 2026 the FOMC issued a statement that it decided to maintain short-term interest rates at a range of 3.5% to 3.75%, and future rate changes will be data dependent; implying they are holding rates constant for the immediate future.
Reliance on inaccurate, incomplete, fraudulent or misleading financial statements, credit reports or other financial or business information, or the failure to receive such information on a timely basis, could result in credit losses, reputational damage or other effects that could have a material adverse effect on our business, financial condition or results of operations.
If such information is inaccurate, incomplete, fraudulent, misleading, or not received on a timely basis, we could experience credit losses, reputational harm, or other adverse effects that may materially impact our business, financial condition, or results of operations.
In recent years, sanctions that the regulators have imposed on banks that have not complied with all requirements have been especially severe. Failure to maintain and implement adequate programs to combat money laundering and terrorist financing could also have serious reputational consequences for us, which could have a material adverse effect on our business, financial condition and results of operations.
Failure to maintain and implement adequate programs to combat money laundering and terrorist financing could also have serious reputational consequences for us, which could have a material adverse effect on our business, financial condition and results of operations. 43 We are subject to the Community Reinvestment Act and federal and state fair lending laws, and failure to comply with these laws could lead to material penalties.
We cannot be certain that the security measures we, or processors, have in place to protect this sensitive data will be successful or sufficient to protect against all current and emerging threats designed to breach our systems or those of processors.
We cannot assure that the security measures we or our processors maintain will be effective or sufficient to protect against all current or emerging threats.
Climate-related disasters include acute risks which are event-driven such as increased instances of hurricanes, tropical storms, winter storms, freezes, wildfires, tornados, floods, and other large-scale weather catastrophes. Any of these events could disrupt the reliability of our operations and those of our customers, and third party vendors and suppliers.
These risks include acute, event‑driven weather events such as hurricanes, storms, freezes, wildfires, floods, and other large‑scale catastrophes, which could disrupt our operations and those of our customers and third‑party vendors. Such events may impair the value of our assets and collateral securing our loans, cause volatility in our investment portfolio, and negatively impact economic and market conditions.
Although we review business continuity and backup plans for our vendors and take other safeguards to support our operations, such plans or safeguards may be inadequate.
Although we review business continuity and backup plans for our vendors and take other safeguards to support our operations, such plans or safeguards may be inadequate. As a result of the foregoing, our ability to conduct business may be adversely affected by any significant disruptions to us or to third parties with whom we interact.
Our expenses could increase due to consumer preference changes and increased legislation and regulatory requirements such as those associated with the transition to a low-carbon economy.
In addition, our expenses may increase due to changing consumer preferences and evolving legislation and regulatory requirements related to the transition to a low‑carbon economy.
In deciding whether to extend credit or enter into other transactions, and in evaluating and monitoring our loan and lease portfolio on an ongoing basis, we may rely on information furnished by or on behalf of customers and counterparties, including financial statements, credit reports and other financial information.
We depend on the accuracy and completeness of information about customers and counterparties. In extending credit, entering into other transactions, and monitoring our loan and lease portfolio, we rely on financial and other information provided by customers, counterparties, and third parties, including financial statements, credit reports, and representations regarding their accuracy and completeness.
As a result of the foregoing, our ability to conduct business may be adversely affected by any significant disruptions to us or to third parties with whom we interact. 37 We must respond to rapid technological changes, and these changes may be more difficult or expensive than anticipated. We will have to respond to future technological changes.
We must respond to rapid technological changes, and these changes may be more difficult or expensive than anticipated. We will have to respond to future technological changes.
Our compliance with banking regulations is costly and restricts some of our activities, including payment of dividends, mergers and acquisitions, investments, loans and interest rates and locations of offices. We are also subject to capitalization guidelines established by our regulators, which require us to maintain adequate capital to support our business.
We are also subject to capitalization guidelines established by our regulators, which require us to maintain adequate capital to support our business.
If sustained or repeated, a system failure or service denial could result in a deterioration of our ability to process new and renewal loans or to gather deposits and provide customer service and it could compromise our ability to operate effectively, damage our reputation, result in a loss of business and subject us to additional regulatory scrutiny and possible financial liability, any of which could have a material adverse effect on our financial condition and results of operations.
Sustained or repeated disruptions could impair our ability to process loans, accept deposits, and provide customer service, harm our reputation, result in lost business, increase regulatory scrutiny, and expose us to financial 37 liability, any of which could materially adversely affect our financial condition and results of operations.
Our trust and investment management business may be negatively impacted by changes in general economic and market conditions because the performance of this business is directly affected by conditions in the financial and securities markets.
Our trust and investment management business is sensitive to changes in economic and market conditions, as its performance is directly affected by financial and securities market volatility. Market conditions are influenced by domestic and foreign economic factors, general business and financial trends, and global conflicts, all of which are beyond our control.
As a result, even short term declines in the performance of the securities we manage, which can result from factors outside our control such as adverse changes in market or economic conditions or the poor performance of some of the investments we have recommended to our clients, could lead some of our clients to move assets under our management to other asset classes such as broad index funds or treasury securities, or to investment advisors that have investment product offerings or investment strategies different than ours.
As a result, even short‑term declines in investment performance—whether due to market or economic conditions, the performance of particular investment strategies or other factors outside our control—could prompt clients to reallocate assets to other investment products or advisers.
We are subject to the Community Reinvestment Act and federal and state fair lending laws, and failure to comply with these laws could lead to material penalties. The Community Reinvestment Act (“CRA”), the ECOA and the FHA impose nondiscriminatory lending requirements on financial institutions.
The Community Reinvestment Act (“CRA”), the ECOA and the FHA impose nondiscriminatory lending requirements on financial institutions. The FDIC, the NYDFS, the Department of Justice, and other federal and state agencies are responsible for enforcing these laws and regulations. Private parties may also have the ability to challenge an institution’s performance under fair lending laws in private class action litigation.
Additionally, our on-balance sheet deposits from labor unions totaled $1.99 billion, or 28% of total on-balance sheet deposits as of December 31, 2024.
Our total on-balance sheet deposits totaled $7.95 billion as of December 31, 2025. For instance, our on-balance sheet deposits from political campaigns, Political Action Committees ("PACs"), and state and national party committee clients totaled $1.73 billion, or 19% of total on-balance sheet deposits as of December 31, 2025.
Fraudulent activity has taken many forms, ranging from check fraud, mechanical devices attached to ATM machines, social engineering and phishing attacks to obtain personal information or impersonation of our clients through the use of falsified or stolen credentials and debit card fraud.
We are exposed to the risk of fraudulent activity, which continues to evolve in scope and sophistication. Fraud may take various forms, including check and debit card fraud, ATM tampering, phishing and other social engineering attacks, and the use of stolen or falsified credentials to impersonate customers.
Declines in the financial markets or a lack of sustained growth may result in a decline in the performance of our investment management business and may adversely affect the market value and performance of the investment securities that we manage, which could lead to reductions in our investment management fees, because they are based primarily on the market value of the securities we manage, and could lead some of our clients to reduce their assets under our management or seek legal remedies for investment 35 performance.
Declines in market performance or lack of sustained growth could reduce the value and performance of assets under management, resulting in lower investment management fees, asset outflows, or increased client disputes. Any of these factors could materially and adversely affect the financial performance of our trust and investment management business.
Therefore, our operating results are heavily dependent on the financial performance of our investment portfolios and the investment strategies we employ in our investment management businesses and even short-term declines in the performance of the investment portfolios we manage for our clients, whatever the cause, could result in a decline in assets under management and a corresponding decline in investment management fees, which would adversely affect our results of operations.
Because our operating results depend on the performance of the investment portfolios we manage, any reduction in assets under management could lead to lower investment management fees and adversely affect our results of operations. Risks Related to Privacy and Technology Information technology systems are critical to our business.
We maintain an allowance for credit losses ("ACL") that represents management’s judgment of current expected credit losses and risks inherent in our loan portfolio. As of December 31, 2024, our ACL totaled $60.1 million, which represents approximately 1.29% of our total loans, net.
As of December 31, 2025, our ACL totaled $57.6 million, which represents approximately 1.16% of our total loans, net.
The failure of these systems, or the termination of a third-party software license or service agreement on which any of these systems is based, could interrupt our operations.
Failure of these systems, termination of related third‑party licenses or service agreements, or capacity constraints or interruptions at third‑party providers could disrupt our operations.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeAs one of the critical elements of the Company’s overall ERM approach, the Company’s Information Security Program is focused on the following key areas: • Protecting the confidentiality, integrity, and availability of information systems and the nonpublic information stored on them. • Identifying risks, defending against unauthorized access, and detecting, responding to, and recovering from cybersecurity incidents.
Biggest changeAs one of the critical elements of the Company’s overall ERM approach, the Company’s Information Security Program is focused on the following key areas: • Protecting the confidentiality, integrity, and availability of information systems and the nonpublic information stored on them. • Identifying risks, defending against unauthorized access, and detecting, responding to, and recovering from cybersecurity incidents. • Continuous training on cybersecurity best practices to our employees.
Through ongoing communications with these teams, the CISO monitors the prevention, detection, mitigation and remediation of cybersecurity threats and incidents in real time and reports such threats and incidents to the Executive Response Team of the Company and as guided by the Company’s Chief Risk Officer, to the Risk Committee when appropriate.
Through ongoing communications with these teams, the CISO monitors the prevention, detection, mitigation and remediation of cybersecurity threats and incidents in real time and reports such threats and incidents to the Executive Response Team of the Company and as guided by the Company’s Chief Risk Executive, to the Risk Committee when appropriate.
The Chief Information Security Officer (“CISO”), under the supervision of the Company’s Chief Risk Officer (“CRO”) in coordination with the Company’s executive team, which includes our CEO, CFO, Chief Technology Officer (“CTO”) and Chief Legal Officer (“CLO”), works collaboratively across the Company to implement the Information Security Program, which is designed to protect the Company’s information systems from cybersecurity threats and to promptly respond to any cybersecurity incidents in accordance with the Company’s incident response and recovery plans.
The Chief Information Security Officer (“CISO”), under the supervision of the Company’s Chief Risk Executive, in coordination with the Company’s executive team, which includes our CEO, CFO, Chief Information and Operations Officer ("CIOO"), Chief Technology Officer (“CTO”), and Chief Legal Officer (“CLO”), works collaboratively across the Company to implement the Information Security Program, which is designed to protect the Company’s information systems from cybersecurity threats and to promptly respond to any cybersecurity incidents in accordance with the Company’s incident response and recovery plans.
Removed
In 2024, the Company appointed a new Chief Information Security Officer (CISO). The new CISO has over 25 years of experience in Cyber Security, Information Security, Risk Management, and Information Technology. He has served as CISO and SVP at a financial institution, overseeing cyber and information security policies and ensuring compliance and security for new product implementations.
Added
During the year ended December 31, 2025, the Company contracted with an interim CISO, upon the departure of the prior CISO. The current interim CISO had previously served as the Company's interim CISO from October of 2023 to June 2024 and interim CTO from July of 2022 through October of 2023.
Removed
Previously, he was VP, Head of Cybersecurity at another financial institution and held key roles at a financial services company. He is actively involved in advisory roles and professional boards, and he holds advanced degrees and certifications in information systems 46 and security.
Added
Additionally this contractor served in various roles in information technology and information security for over 25 years, including serving as the CISO and CTO, respectively, of two large public financial services 46 companies. The interim CISO has also performed Information Security leadership roles in two technology companies assessing and managing cyber risk on large amounts of data.
Removed
The CISO holds a Bachelor’s in Science in Managed Information Systems from Saint Peter’s University, a Master of Science in Information Systems with a concentration in Information Security from Stevens Institute of Technology, Hoboken, NJ, and a Graduate Certificate in Business Process Management and Service Innovation from Stevens Institute of Technology, Hoboken, NJ.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties. As of December 31, 2024, our three branch offices in New York City, one branch office in Washington, D.C., one commercial/ branch office in San Francisco, and one commercial/ branch office in Boston are leased. We believe that our current facilities are adequate to meet our present and foreseeable needs, subject to possible future expansion.
Biggest changeItem 2. Properties. As of December 31, 2025, our three branch offices in New York City, one branch office in Washington, D.C., one branch office in San Francisco, and one commercial office in Boston are leased. We also lease an office in New York City that serves as our corporate headquarters.
Removed
We lease 133,276 square feet in a building located at 275 Seventh Avenue, New York, New York 10001 that serves as our corporate headquarters.
Added
During the year ended December 31, 2025, the Company entered into a new fifteen-year leases for the Company's headquarters in New York City, which will replace the current headquarters, a new office in Oakland, and a new branch in New York City, which replaces an existing branch. These leases are expected to commence in 2026.
Added
We believe that our current facilities are adequate to meet our present and foreseeable needs, subject to possible future expansion.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+2 added−2 removed13 unchanged
Biggest changeIssuer Purchases of Equity Securities 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) October 1 through October 31, 2024 14,100 $ 34.31 — $ 19,496,499 November 1 through November 30, 2024 11,551 36.81 — $ 19,496,499 December 1 through December 31, 2024 25,382 33.53 25,222 $ 18,651,265 Total 51,033 $ 34.49 25,222 (1) Includes 19,184 shares withheld by the Company for options exercises, 6,627 shares withheld for taxes related to the exercise or vesting of options and stock awards, as well as 25,222 shares repurchased pursuant to the share repurchase program described in Note (2).
Biggest changeIssuer Purchases of Equity Securities Total number of shares purchased (1) Average price paid per share (3) 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) October 1 through October 31, 2025 203,829 $ 27.39 178,266 $ 15,075,153 November 1 through November 30, 2025 122,510 27.84 122,324 $ 11,669,731 December 1 through December 31, 2025 8,861 30.78 8,861 $ 11,396,987 Total 335,200 $ 27.64 309,451 (1) Includes 25,749 shares withheld for taxes related to the exercise or vesting of options and stock awards, as well as 309,451 shares repurchased pursuant to the share repurchase program described in Note (2).
See “ Cautionary Note Regarding Forward-Looking Statements ” and “ Supervision and Regulation—Amalgamated Financial Corp.—Capital Requirements and Payment of Dividends ” and “ Supervision and Regulation—Amalgamated Bank—Payment of Dividends. ” 49 Stock Performance Graph The following stock performance graph compares the cumulative total shareholder returns for the Company's common stock, KBW Bank Index, Nasdaq Composite Index and the KBW Regional Bank Index for the last five fiscal years.
See “ Cautionary Note Regarding Forward-Looking Statements ” and “ Supervision and Regulation—Amalgamated Financial Corp.—Capital Requirements and Payment of Dividends ” and “ Supervision and Regulation—Amalgamated Bank—Payment of Dividends. ” 49 Stock Performance Graph The following stock performance graph compares the cumulative total shareholder returns for the Company's common stock, Nasdaq Composite Index and the KBW Regional Bank Index for the last five fiscal years.
Dividend Policy We have historically paid a quarterly cash dividend, and intend to continue paying a quarterly cash dividend of $0.14 per share on our common stock, although we may elect not to pay dividends or to change the amount of such dividends.
Dividend Policy We have historically paid a quarterly cash dividend, and intend to continue paying a quarterly cash dividend per share on our common stock, although we may elect not to pay dividends or to change the amount of such dividends.
The graph assumes that an investor originally invested $100 in shares of the Bank's common stock at its closing price on December 31, 2019, and assumes reinvestment of dividends and other distributions to stockholders.
The graph assumes that an investor originally invested $100 in shares of the Bank's common stock at its closing price on December 31, 2020, and assumes reinvestment of dividends and other distributions to stockholders.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information and Holders of Record Our common stock is listed on The NASDAQ Global Market under the symbol “AMAL.” As of December 31, 2024, we had 30,670,982 shares of common stock outstanding and approximately 200 stockholders of record.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information and Holders of Record Our common stock is listed on The NASDAQ Global Market under the symbol “AMAL.” As of December 31, 2025, we had 29,818,424 shares of common stock outstanding and approximately 200 stockholders of record.
(2) Effective February 22, 2022, our Board of Directors approved an increase to the share repurchase program authorizing the repurchase of an aggregate amount up to $40 million of our outstanding common stock. The authorization did not require us to acquire any specified number of shares and can be suspended or discontinued without prior notice.
(2) 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.
Cumulative Total Returns Period Ending 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 KBW Bank Index $ 100.00 $ 86.37 $ 100.74 $ 89.62 $ 75.92 $ 85.36 Nasdaq Composite Index 100.00 143.64 250.46 292.16 488.78 1,051.96 KBW Regional Bank Index 100.00 87.90 102.92 109.12 111.04 123.84 Amalgamated Financial Corp. 100.00 70.64 60.91 72.15 99.94 171.97 50 Repurchases of Equity Securities The following table contains information regarding purchases of our common stock during the three months ended December 31, 2024 by or on behalf of the Company or any “affiliate purchaser” as defined in Rule 10b-18(a)(3) under the Exchange Act.
Cumulative Total Returns Period Ending 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 Nasdaq Composite Index $ 100.00 $ 121.39 $ 81.21 $ 116.47 $ 149.83 $ 180.33 KBW Regional Bank Index 100.00 133.20 120.61 115.77 126.88 131.08 Amalgamated Financial Corp. 100.00 122.05 167.69 196.07 243.60 233.11 50 Repurchases of Equity Securities The following table contains information regarding purchases of our common stock during the three months ended December 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.
Removed
In 2024, the Nasdaq Composite Index was selected to replace the KBW Bank Index starting 2025 as we concluded it more closely reflects the size and characteristics of the Company. In future years, we will no longer provide a comparison to the KBW Bank Index.
Added
Under the 2025 Share Repurchase Program, $8.6 million of common stock was purchased during the quarter ended December 31, 2025. Shares repurchased under the 2025 Share Repurchase Program are returned to the Company's treasury stock.
Removed
Under this authorization, $1.1 million of common stock were purchased during the year ended December 31, 2024. The approximate dollar value that may yet to be purchased under the plans or programs is $18.7 million. 51 Item 6. [Reserved]
Added
(3) Average price paid per share includes costs associated with the repurchases but excludes the 1% excise tax on stock repurchases imposed by the Inflation Reduction Act of 2022. 51 Item 6. [Reserved]

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

104 edited+25 added−28 removed63 unchanged
Biggest changeAdditionally, the allowance for expected credit losses on off-balance sheet loan exposures was increased by $2.7 million to recognize the Day 1 cumulative impact of adopting the CECL standard. 68 Allocation of Allowance for Credit Losses on Loans The following table presents the allocation of the allowance and the percentage of the total amount of loans in each loan category listed as of the dates indicated: At December 31, 2024 At December 31, 2023 At December 31, 2022 (In thousands) Amount % of total loans Amount % of total loans Amount % of total loans Commercial Portfolio: Commercial and industrial $ 13,505 25.2 % $ 18,331 22.9 % $ 12,916 22.5 % Multifamily 2,794 28.9 % 2,133 26.1 % 7,104 23.6 % Commercial real estate 1,600 8.8 % 1,276 8.0 % 3,627 8.2 % Construction and land development 1,253 0.4 % 24 0.5 % 825 0.9 % Total commercial portfolio $ 19,152 63.3 % $ 21,764 57.5 % $ 24,472 55.2 % Retail Portfolio: Residential real estate lending 9,493 28.1 % 13,273 32.3 % 11,338 33.5 % Consumer solar 29,095 7.8 % 27,978 9.3 % 6,867 10.2 % Consumer and other 2,346 0.8 % 2,676 0.9 % 2,354 1.1 % Total retail portfolio $ 40,934 36.7 % $ 43,927 42.5 % $ 20,559 44.8 % Total allowance for credit losses $ 60,086 $ 65,691 $ 45,031 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.
Biggest changeAt December 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. 66 Allocation of Allowance for Credit Losses on Loans The following table presents the allocation of the allowance and the percentage of the total amount of loans in each loan category listed as of the dates indicated: At December 31, 2025 At December 31, 2024 At December 31, 2023 (In thousands) Amount % of total loans Amount % of total loans Amount % of total loans Commercial Portfolio: Commercial and industrial $ 13,276 26.9 % $ 13,505 25.2 % $ 18,331 22.9 % Multifamily 4,792 33.2 % 2,794 28.9 % 2,133 26.1 % Commercial real estate 1,779 7.3 % 1,600 8.8 % 1,276 8.0 % Construction and land development 1,506 0.5 % 1,253 0.4 % 24 0.5 % Total commercial portfolio $ 21,353 67.9 % $ 19,152 63.3 % $ 21,764 57.5 % Retail Portfolio: Residential real estate lending 7,157 25.0 % 9,493 28.1 % 13,273 32.3 % Consumer solar 28,149 6.6 % 29,095 7.8 % 27,978 9.3 % Consumer and other 927 0.5 % 2,346 0.8 % 2,676 0.9 % Total retail portfolio $ 36,233 32.1 % $ 40,934 36.7 % $ 43,927 42.5 % Total allowance for credit losses on loans $ 57,586 $ 60,086 $ 65,691 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 dates indicated: December 31, 2025 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 41 4.5 % 49 4.7 % ABS — 10.1 % — 13.6 % Municipal — 4.1 % — 4.1 % Total traditional securities $ 41 30.6 % $ 49 34.3 % PACE assessments: Commercial PACE assessments $ 328 21.1 % $ 268 16.9 % Residential PACE assessments 375 48.3 % 387 48.8 % Total retail portfolio $ 703 69.4 % $ 655 65.7 % Total allowance for credit losses on securities $ 744 $ 704 67 Nonperforming Assets Nonperforming assets include all loans categorized as nonaccrual, other real estate owned and other repossessed assets.
For more information about how we evaluate interest rate risk, please see the section entitled “ Quantitative and Qualitative Disclosures about Market Risk – Evaluation of Interest Rate Risk .” 54 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 on deposits and borrowings.
For more information about how we evaluate interest rate risk, please see the section entitled “ Quantitative and Qualitative Disclosures about Market Risk – Evaluation of Interest Rate Risk .” 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 on deposits and borrowings.
We invest in non-GSE securities, including property assessed clean energy, or 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.
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.
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.
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 59 portfolio according to written investment policies approved by our Board of Directors.
Government sponsored entity (“GSE”) obligations. GSEs include the Federal Home Loan Mortgage Corporation (“FHLMC”), the Federal National Mortgage Association (“FNMA”), the 60 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 collateralized mortgage obligations (“CMOs”).
Government sponsored entity (“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 collateralized mortgage obligations (“CMOs”).
Our Business Amalgamated Financial Corp., a Delaware public benefit corporation was formed on August 25, 2020 to serve as the holding company for the Bank, which 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.
Overview Our Business Amalgamated Financial Corp., a Delaware public benefit corporation was formed on August 25, 2020 to serve as the holding company for the Bank, which 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.
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.
Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed, and 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 inherently uncertain matters.
Maturities and Sensitivity of Loans to Changes in Interest Rates 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.
Maturities and Sensitivity of Loans to Changes in Interest Rates 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 64 modification of terms upon maturity.
These customers include advocacy-based non-profits, social welfare organizations, national labor unions, political 52 organizations, foundations, socially responsible businesses, and other for-profit companies that seek to ensure their profit-making activities align for the benefit of all their stakeholders.
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 ensure their profit-making activities align for the benefit of all their stakeholders.
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.
The major categories of our commercial loan portfolio are discussed below: Commercial & Industrial ("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.
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.
Our products and services are tailored to our target customer 52 base that prefers a financial partner that is socially responsible, values-oriented and committed to creating positive change in the world.
These factors include: (1) borrower's financial condition; (2) borrower's 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.
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.
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 December 31, 2024 or at December 31, 2023. 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.
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 December 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.
The following is a discussion of the critical accounting policies and significant estimates that require us to make complex and subjective judgments. Additional information about these policies can be found in Note 1 of our consolidated financial statements, which begin on page 86 of this report.
The following is a discussion of the critical accounting policies and significant estimates that require us to make complex and subjective judgments. Additional information about these policies can be found in Note 1 of our consolidated financial statements, which begin on page 84 of this report.
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 73 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.
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 71 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.
As of December 31, 2024, 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.
As of December 31, 2025 and December 31, 2024, 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 73 and liquidity risk.
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 table summarizes our loans held for investment portfolio at December 31, 2024 by maturity date.
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 table summarizes our loans held for investment portfolio at December 31, 2025 by maturity date.
(2) Amounts are net of deferred origination fees and costs. With the adoption of the CECL standard on January 1, 2023, the average balance of the allowance for credit losses on loans was reclassified for all presented periods to other assets to allow for comparability.
(2) Amounts are net of deferred origination fees and costs. With the adoption of the current expected credit losses ("CECL") standard on January 1, 2023, the average balance of the allowance for credit losses on loans was reclassified for all presented periods to other assets to allow for comparability.
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 73% of their exposure in New York City—our largest geographic concentration.
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 81% of their exposure in New York City—our largest geographic concentration.
Critical Accounting Estimates Our consolidated financial statements are prepared based on the application of generally accepted accounting policies ("GAAP") in the United States, or GAAP, the most significant of which are described in Note 1 of our audited consolidated financial statements, starting on page 86 of this report.
Critical Accounting Estimates Our consolidated financial statements are prepared based on the application of generally accepted accounting policies ("GAAP") in the United States, or GAAP, the most significant of which are described in Note 1 of our audited consolidated financial statements, starting on page 84 of this report.
As of December 31, 2024, 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.
As of December 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.
Item 7. 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 December 31, 2024, as compared to December 31, 2023, and our results of operations for the years ended December 31, 2024, December 31, 2023, and December 31, 2022.
Item 7. 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 December 31, 2025, as compared to December 31, 2024, and our results of operations for the years ended December 31, 2025, December 31, 2024, and December 31, 2023.
Discussions of 2022 results and year-to-year comparisons between 2023 and 2022 can be found in the Management's Discussion and Analysis located in Part II, Item 7 of our annual report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on March 7, 2024.
Discussions of 2023 results and year-to-year comparisons between 2024 and 2023 can be found in the Management's Discussion and Analysis located in Part II, Item 7 of our annual report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 6, 2025.
We bank politically active customers, such as campaigns, PACs, and state and national party committees, which we refer to as political deposits. These deposits exhibit seasonality based on election cycles.
We bank politically active customers, such as campaigns, Political Action Committee ("PACs"), and state and national party committees, which we refer to as political deposits. These deposits exhibit seasonality based on election cycles.
Accrued interest receivable on available for sale debt securities totaled $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. 61 The following table is a summary of our investment portfolio, using market value for available for sale securities and amortized cost for held-to-maturity securities, as of the dates indicated.
Accrued interest receivable on available for sale debt securities totaled $11.8 million at December 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. 60 The following table is a summary of our investment portfolio, using market value for available for sale securities and amortized cost for held-to-maturity securities, as of the dates indicated.
Theese 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.
These 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.
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 December 31, 2024.
Although we are no longer majority union-owned, The Amalgamated Clothing Workers of America’s successor, Workers United, an affiliate of the Service Employees International Union that represents workers in the textile, distribution, food service and gaming industries, remains a significant stockholder, holding approximately 38% of our equity as of December 31, 2025.
Total deposits were $7.18 billion at December 31, 2024, compared to $7.01 billion at December 31, 2023. 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.
Total deposits were $7.95 billion at December 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.
At December 31, 2024 and December 31, 2023, we had available for sale securities of $1.63 billion and $1.48 billion, respectively. At December 31, 2024, 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.
At December 31, 2025 and December 31, 2024, we had available for sale securities of $1.78 billion and $1.63 billion, respectively. At December 31, 2025, 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.
Non-interest-bearing deposits represented 46% of average deposits for the year ended December 31, 2024, compared to 44% for the year ended December 31, 2023. 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.
Non-interest-bearing deposits represented 39% of average deposits for the year ended December 31, 2025, compared to 46% for the year ended December 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.
Total loans, net of deferred origination fees and allowance for credit losses, were $4.61 billion as of December 31, 2024 compared to $4.35 billion as of December 31, 2023. Within our commercial loan portfolio, our primary focus has been on C&I, multifamily and CRE lending.
Total loans, net of deferred origination fees and allowance for credit losses, were $4.90 billion as of December 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 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 December 31, 2024 by exposure was $8.6 million with a median size of $0.8 million.
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 63 that generate cash flow). The average size of our C&I loans at December 31, 2025 by exposure was $7.9 million with a median size of $0.6 million.
Available for sale securities with an aggregate fair value at December 31, 2024 of $1.05 billion were pledged to secure outstanding advances, letters of credit, provide additional borrowing potential, and collateralize municipal deposits.
Available for sale securities with an aggregate fair value of $1.15 billion at December 31, 2025 were pledged to secure outstanding advances, letters of credit, provide additional borrowing potential and collateralize municipal deposits.
We had held-to-maturity securities of $1.59 billion at December 31, 2024, and $1.70 billion at December 31, 2023. Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type.
We had held-to-maturity securities of $1.55 billion at December 31, 2025, and $1.59 billion at December 31, 2024. Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type.
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 regulatory capital rules impose minimum capital requirements for bank holding companies and banks.
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. 72 Basel III regulatory capital rules impose minimum capital requirements for bank holding companies and banks.
This discussion generally focuses on 2024 and 2023 results and year-to-year comparisons between 2024 and 2023.
This discussion generally focuses on 2025 and 2024 results and year-to-year comparisons between 2025 and 2024.
Trust Department fees consist of fees we receive in connection with our investment advisory and custodial management services of investment accounts. Our Trust Department fees were $15.2 million in the year ended December 31, 2024, an increase of $11.0 thousand, or 0.1%, from same period in 2023. Equity method investments income consists of income from solar tax equity investments.
Trust Department fees consist of fees we receive in connection with our investment advisory and custodial management services of investment accounts. Our Trust Department fees were $16.2 million in the year ended December 31, 2025, an increase of $1.0 million, or 6.6%, from same period in 2024. Equity method investments income consists of income from solar tax equity investments.
The allowance for credit losses for held-to-maturity securities at December 31, 2024 was $0.7 million compared to $0.7 million at December 31, 2023. The provision for credit losses for held-to-maturity securities was a recovery of $18.8 thousand for the year December 31, 2024 compared to an expense of $79.0 thousand at December 31, 2023.
The allowance for credit losses for held-to-maturity securities at December 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 an expense of $39.6 thousand for the year December 31, 2025 compared to a recovery of $18.8 thousand at December 31, 2024.
Accrued interest receivable on held-to-maturity debt securities totaled $27.0 million at December 31, 2024 and $22.5 million at December 31, 2023, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status.
Accrued interest receivable on held-to-maturity debt securities totaled $29.8 million at December 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.
In return for record keeping services at Program Banks, the Company receives a servicing charge. For the fiscal year ended December 31, 2024, the Company recognized $17.2 million in servicing charge income attributable to our off-balance sheet deposit strategy, compared to $149 thousand for the year ended December 31, 2023, and $17 thousand for the year ended December 31, 2022.
In return for record keeping services at Program Banks, the Company receives a servicing charge. For the fiscal year ended December 31, 2025, the Company recognized $2.4 million in servicing charge income attributable to our off-balance sheet deposit strategy, compared to $17.2 million for the year ended December 31, 2024.
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 $1.35 billion at December 31, 2024, which comprised 28.9% of our total loan portfolio.
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 56%. Our multifamily loans totaled $1.64 billion at December 31, 2025, which comprised 33.2% of our total loan portfolio.
The allowance for credit losses is established and maintained through a provision for credit losses based on expected losses inherent in our loan portfolio.
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.
At December 31, 2024, our cash and equivalents, which consist of cash and amounts due from banks and interest-bearing deposits in other financial institutions, amounted to $60.7 million, or 0.7% of total assets, compared to $90.6 million, or 1.1% of total assets at December 31, 2023.
At December 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 $291.2 million, or 3.3% of total assets, compared to $60.7 million, or 0.7% of total assets at December 31, 2024.
Our consumer and other portfolio is comprised of purchased student loans, unsecured consumer loans and overdraft lines. Our consumer and other loans totaled $34.6 million at December 31, 2024, which comprised 0.8% of our total loan portfolio, compared to $41.3 million, or 0.9% of our total loan portfolio, at December 31, 2023.
Our consumer and other portfolio is comprised of purchased student loans, unsecured consumer loans and overdraft lines. Our consumer and other loans totaled $27.7 million at December 31, 2025, which comprised 0.5% of our total loan portfolio, compared to $34.6 million, or 0.8% of our total loan portfolio, at December 31, 2024.
Loans are returned to accrual status when principal and interest amounts contractually due are brought current and future payments are reasonably assured. 70 The following table sets forth information about our nonperforming assets as of December 31, 2024,December 31, 2023 and December 31, 2022 : (In thousands) December 31, 2024 December 31, 2023 December 31, 2022 Loans 90 days past due and accruing $ — $ — $ — Nonaccrual loans held for sale 4,853 989 6,914 Nonaccrual loans - Commercial 16,041 23,189 18,308 Nonaccrual loans - Retail 4,968 9,994 3,391 Nonaccrual securities 8 31 36 Total nonperforming assets $ 25,870 34,203 28,649 Nonaccrual loans: Commercial and industrial $ 872 7,533 9,629 Multifamily — — 3,828 Commercial real estate 4,062 4,490 4,851 Construction and land development 11,107 11,166 — Total commercial portfolio 16,041 23,189 18,308 Residential real estate lending 1,771 7,218 1,807 Consumer solar 2,827 2,673 1,584 Consumer and other 370 103 — Total retail portfolio 4,968 9,994 3,391 Total nonaccrual loans $ 21,009 33,183 21,699 Nonperforming assets to total assets 0.31 % 0.43 % 0.37 % Nonaccrual assets to total assets 0.31 % 0.43 % 0.36 % Nonaccrual loans to total loans 0.45 % 0.75 % 0.53 % Allowance for credit losses on loans to nonaccrual loans 286.00 % 197.97 % 207.53 % Allowance for credit losses on loans to total loans 1.29 % 1.49 % 1.10 % Net charge-offs to average loans 0.36 % 0.33 % 0.16 % Ratio of net recoveries (charge-offs) to average loans outstanding during the period: Commercial and industrial (0.74) % (0.17) % 0.03 % Multifamily (0.04) % (0.22) % (0.05) % Commercial real estate — % — % — % Construction and land development (1.80) % (15.21) % (1.12) % Total commercial portfolio (0.33) % (0.36) % (0.03) % Residential real estate lending (0.01) % 0.05 % (0.05) % Consumer solar (1.89) % (1.39) % (1.32) % Consumer and other (0.71) % (0.53) % (0.39) % Total retail portfolio (0.43) % (0.29) % (0.33) % Total (0.37) % (0.33) % (0.16) % 71 Nonperforming assets totaled $25.9 million , or 0.31% of period-end total assets at December 31, 2024 , a decrease of $8.3 million, compared with $34.2 million, or 0.43% of period-end total assets at December 31, 2023.
Loans are returned to accrual status when principal and interest amounts contractually due are brought current and future payments are reasonably assured. 68 The following table sets forth information about our nonperforming assets as of December 31, 2025, December 31, 2024 and December 31, 2023: (In thousands) December 31, 2025 December 31, 2024 December 31, 2023 Loans 90 days past due and accruing $ — $ — $ — Nonaccrual loans held for sale 930 4,853 989 Nonaccrual loans - Commercial 22,108 16,041 23,189 Nonaccrual loans - Retail 5,607 4,968 9,994 Nonaccrual securities 6 8 31 Total nonperforming assets $ 28,651 25,870 34,203 Nonaccrual loans: Commercial and industrial $ 713 $ 872 $ 7,533 Multifamily 10,316 — — Commercial real estate — 4,062 4,490 Construction and land development 11,079 11,107 11,166 Total commercial portfolio 22,108 16,041 23,189 Residential real estate lending 2,419 1,771 7,218 Consumer solar 3,129 2,827 2,673 Consumer and other 59 370 103 Total retail portfolio 5,607 4,968 9,994 Total nonaccrual loans $ 27,715 21,009 33,183 Nonperforming assets to total assets 0.32 % 0.31 % 0.43 % Nonaccrual assets to total assets 0.32 % 0.31 % 0.43 % Nonaccrual loans to total loans 0.56 % 0.45 % 0.75 % Allowance for credit losses on loans to nonaccrual loans 207.78 % 286.00 % 197.97 % Allowance for credit losses on loans to total loans 1.16 % 1.29 % 1.49 % Net charge-offs to average loans 0.43 % 0.36 % 0.33 % Ratio of net recoveries (charge-offs) to average loans outstanding during the period: Commercial and industrial (0.80) % (0.74) % (0.17) % Multifamily (0.16) % (0.04) % (0.22) % Commercial real estate — % — % — % Construction and land development — % (1.80) % (15.21) % Total commercial portfolio (0.40) % (0.33) % (0.36) % Residential real estate lending 0.04 % (0.01) % 0.05 % Consumer solar (2.31) % (1.89) % (1.39) % Consumer and other (0.28) % (0.71) % (0.53) % Total retail portfolio (0.46) % (0.43) % (0.29) % Total (0.42) % (0.37) % (0.33) % 69 Nonperforming assets totaled $28.7 million , or 0.32% of period-end total assets at December 31, 2025 , an increase of $2.8 million, compared with $25.9 million, or 0.31% of period-end total assets at December 31, 2024.
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 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.
As of December 31, 2023 , w e entered into $50.0 million of short term investments of resell agreements backed by residential first-lien mortgage loans, with a weighted interest rate of 6.34%. Deferred Tax Asset We had a deferred tax asset, net of deferred tax liabilities, of $42.4 million at December 31, 2024 and $56.6 million at December 31, 2023.
As of December 31, 2024 , w e entered into $23.7 million of short term investments of resell agreements backed by residential first-lien mortgage loans, with a weighted interest rate of 6.91%. Deferred Tax Asset We had deferred tax assets, net of deferred tax liabilities, of $30.8 million at December 31, 2025 and $42.4 million at December 31, 2024.
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).
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 buffer is equal to 2.5% of risk-weighted assets.
Net income for the year ended December 31, 2024 was $106.4 million, or $3.44 per average diluted share, compared to $88.0 million, or $2.86 per average diluted share, for the same period in 2023.
Net income for the year ended December 31, 2025 was $104.4 million, or $3.41 per average diluted share, compared to $106.4 million, or $3.44 per average diluted share, for the same period in 2024.
Maturities of time certificates of deposit and other time deposits of $250,000 or more outstanding at December 31, 2024 are summarized as follows: Maturities as of December 31, 2024 (In thousands) Within three months $ 8,715 After three but within six months 23,507 After six months but within twelve months 15,251 After twelve months 1,009 $ 48,482 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.
Maturities of time certificates of deposit and other time deposits of $250,000 or more outstanding at December 31, 2025 are summarized as follows: Maturities as of December 31, 2025 (In thousands) Within three months $ 70,406 After three but within six months 64,561 After six months but within twelve months 57,304 After twelve months 10,950 $ 203,221 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.
The $18.4 million increase was primarily due to net interest income which increased by $21.1 million, a decrease in provision for credit losses of $4.4 million, and an increase of non-interest income of $3.9 million, offset by an increase in non-interest expense of $8.6 million, and an increase in income tax expense of $2.4 million.
The $2.0 million decrease was primarily due an increase in non-interest expense of $12.4 million, an increase in provision for credit losses of $6.0 million, and a decrease of non-interest income of $2.3 million, partially offset by net interest income which increased by $15.4 million and a decrease in income tax expense of $3.5 million.
As of December 31, 2024, approximately 80% of our residential one-to-four family mortgage loans were either originated by our loan officers or were acquired in our acquisition of New Resource Bank, and approximately 20% were purchased or acquired.
Our residential real estate lending portfolio is 99% first mortgage loans and 1% second mortgage loans. As of December 31, 2025, approximately 80% of our residential one-to-four family mortgage loans were either originated by our loan officers or were acquired in our acquisition of New Resource Bank, and approximately 20% were purchased or acquired.
Our cash and borrowing capacity totale d $2.74 billion of immediately available funds, in addition to unpledged securities with two-day availability of $441.0 million for total liquidity within two-days of $3.18 billion , which provided coverage for 86% of total uninsured deposits.
Our cash and borrowing capacity to taled $4.26 billion of immediately available funds, in addition to unpledged securities with two-day availability of $486.0 million for total liquidity within two days of $4.74 billion , which provided coverage for 103% of total uninsured deposits.
For the year ended December 31, 2023, the provision for credit losses on loans totaled $13.5 million, the provision for credit losses on securities totaled $1.2 million, and the provision for credit losses on off-balance sheet credit exposures was a release of reserves of $0.1 million.
For the year ended December 31, 2025 , the provision for credit losses on loans totaled $17.6 million, the provision for credit losses on securities totaled $39.6 thousand, and the provision for credit losses on off-balance sheet credit exposures was a release of reserves of $1.4 million.
Income Taxes We had a provision for income tax expense of $39.2 million for the year ended December 31, 2024, compared to $36.8 million for the same period in 2023. Our effective tax rate was 26.9% for the year ended December 31, 2024, compared to 29.5% for the same period in 2023.
Income Taxes Provision for income tax expense was $35.7 million for the year ended December 31, 2025, compared to $39.2 million for the same period in 2024. Our effective tax rate was 25.5% for the year ended December 31, 2025, compared to 26.9% for the same period in 2024.
Our C&I loans totaled $1.18 billion at December 31, 2024, which comprised 25.2% of our total loan portfolio. During the year ended 2024, the C&I loan portfolio increased by 16.3% from $1.01 billion at December 31, 2023. Multifamily .
Our C&I loans totaled $1.33 billion at December 31, 2025, which comprised 26.9% of our total loan portfolio. During the year ended 2025, the C&I loan portfolio increased by 13.6% from $1.18 billion at December 31, 2024. Multifamily .
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. 55 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: Year Ended December 31, 2024 2023 2022 (In thousands) Average Balance Income / Expense Yield / Rate Average Balance Income / Expense Yield / Rate Average Balance Income / Expense Yield / Rate Interest-earning assets: Interest-bearing deposits in banks $ 176,830 $ 8,669 4.90 % $ 142,053 $ 5,779 4.07 % $ 258,214 $ 2,186 0.85 % Securities (1) 3,295,597 171,308 5.20 % 3,250,788 160,298 4.93 % 3,391,056 106,417 3.14 % Resell agreements 89,312 5,939 6.65 % 10,233 705 6.89 % 182,304 4,237 2.32 % Total loans (2)(3) 4,479,038 215,380 4.81 % 4,259,195 191,295 4.49 % 3,615,437 145,649 4.03 % Total interest-earning assets 8,040,777 401,296 4.99 % 7,662,269 358,077 4.67 % 7,447,011 258,489 3.47 % Non-interest-earning assets: Cash and due from banks 5,970 5,140 7,126 Other assets 218,033 208,902 273,028 Total assets $ 8,264,780 $ 7,876,311 $ 7,727,165 Interest-bearing liabilities: Savings, NOW and money market deposits $ 3,699,972 $ 99,362 2.69 % $ 3,344,407 $ 59,818 1.79 % $ 2,981,688 $ 10,069 0.34 % Time deposits 210,599 7,706 3.66 % 167,167 3,452 2.07 % 185,692 961 0.52 % Brokered CDs 122,035 6,393 5.24 % 364,833 17,854 4.89 % 9,338 26 0.28 % Total interest-bearing deposits 4,032,606 113,461 2.81 % 3,876,407 81,124 2.09 % 3,176,718 11,056 0.35 % Borrowings 140,539 5,405 3.85 % 350,039 15,642 4.47 % 200,726 7,593 3.78 % Total interest-bearing liabilities 4,173,145 118,866 2.85 % 4,226,446 96,766 2.29 % 3,377,444 18,649 0.55 % Non-interest-bearing liabilities: Demand and transaction deposits 3,373,047 3,045,013 3,746,152 Other liabilities 69,245 73,770 82,931 Total liabilities 7,615,437 7,345,229 7,206,527 Stockholders' equity 649,343 531,082 520,638 Total liabilities and stockholders' equity $ 8,264,780 $ 7,876,311 $ 7,727,165 Net interest income / interest rate spread $ 282,430 2.14 % $ 261,311 2.38 % $ 239,840 2.92 % Net yield on interest-earning assets / net interest margin $ 3,867,632 3.51 % $ 3,435,823 3.41 % $ 4,069,567 3.22 % Total Cost of Deposits 1.53 % 1.17 % 0.16 % (1) Includes FHLBNY stock in the average balance, and dividend income on FHLBNY stock in interest income.
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. 55 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: Year Ended December 31, 2025 2024 2023 (In thousands) Average Balance Income / Expense Yield / Rate Average Balance Income / Expense Yield / Rate Average Balance Income / Expense Yield / Rate Interest-earning assets: Interest-bearing deposits in banks $ 136,810 $ 5,341 3.90 % $ 176,830 $ 8,669 4.90 % $ 142,053 $ 5,779 4.07 % Securities (1) 3,384,246 172,553 5.10 % 3,295,597 171,308 5.20 % 3,250,788 160,298 4.93 % Resell agreements 51,554 3,719 7.21 % 89,312 5,939 6.65 % 10,233 705 6.89 % Total loans (2)(3) 4,720,351 240,616 5.10 % 4,479,038 215,380 4.81 % 4,259,195 191,295 4.49 % Total interest-earning assets 8,292,961 422,229 5.09 % 8,040,777 401,296 4.99 % 7,662,269 358,077 4.67 % Non-interest-earning assets: Cash and due from banks 6,146 5,970 5,140 Other assets 211,921 218,033 208,902 Total assets $ 8,511,028 $ 8,264,780 $ 7,876,311 Interest-bearing liabilities: Savings, NOW and money market deposits $ 4,465,877 $ 114,209 2.56 % $ 3,699,972 $ 99,362 2.69 % $ 3,344,407 $ 59,818 1.79 % Time deposits 213,261 7,345 3.44 % 210,599 7,706 3.66 % 167,167 3,452 2.07 % Brokered CDs — — 0.00 % 122,035 6,393 5.24 % 364,833 17,854 4.89 % Total interest-bearing deposits 4,679,138 121,554 2.60 % 4,032,606 113,461 2.81 % 3,876,407 81,124 2.09 % Borrowings 88,817 2,891 3.26 % 140,539 5,405 3.85 % 350,039 15,642 4.47 % Total interest-bearing liabilities 4,767,955 124,445 2.61 % 4,173,145 118,866 2.85 % 4,226,446 96,766 2.29 % Non-interest-bearing liabilities: Demand and transaction deposits 2,929,346 3,373,047 3,045,013 Other liabilities 61,126 69,245 73,770 Total liabilities 7,758,427 7,615,437 7,345,229 Stockholders' equity 752,601 649,343 531,082 Total liabilities and stockholders' equity $ 8,511,028 $ 8,264,780 $ 7,876,311 Net interest income / interest rate spread $ 297,784 2.48 % $ 282,430 2.14 % $ 261,311 2.38 % Net yield on interest-earning assets / net interest margin $ 3,525,006 3.59 % $ 3,867,632 3.51 % $ 3,435,823 3.41 % Total Cost of Deposits 1.60 % 1.53 % 1.17 % (1) Includes FHLBNY stock in the average balance, and dividend income on FHLBNY stock in interest income.
As of December 31, 2024 and December 31, 2023, we had approximately $969.6 million and $1.19 billion, respectively, in on-balance sheet and off-balance sheet political deposits which are primarily in demand deposits. 72 The following table sets forth the average balance amounts and the average rates paid on deposits held by us for the years ended December 31, 2024, December 31, 2023 and December 31, 2022. 2024 2023 2022 Average Balance Income / Expense Average Rate Paid Average Balance Income / Expense Average Rate Paid Average Balance Income / Expense Average Rate Paid (In thousands) Non-interest-bearing demand and transaction deposits $ 3,373,047 $ — 0.00 % $ 3,045,013 $ — 0.00 % $ 3,746,152 $ — 0.00 % NOW accounts 187,996 1,887 1.00 % 193,765 1,804 0.93 % 207,675 450 0.22 % Money market deposit accounts 3,178,206 92,747 2.92 % 2,787,911 54,334 1.95 % 2,391,641 8,753 0.37 % Savings accounts 333,770 4,728 1.42 % 362,731 3,680 1.01 % 382,372 866 0.23 % Time deposits 210,599 7,706 3.66 % 167,167 3,452 2.07 % 185,692 961 0.52 % Brokered CDs 122,035 6,393 5.24 % 364,833 17,854 4.89 % 9,338 26 0.28 % $ 7,405,653 $ 113,461 1.53 % $ 6,921,420 $ 81,124 1.17 % $ 6,922,870 $ 11,056 0.16 % With participation through ICS, our off-balance sheet deposits totaled zero at December 31, 2024 and $303.1 million at December 31, 2023.
As of December 31, 2025 and December 31, 2024, we had approximately $1.73 billion and $969.6 million, respectively, in on-balance sheet and off-balance sheet political deposits which are primarily in demand deposits. 70 The following table sets forth the average balance amounts and the average rates paid on deposits held by us for the years ended December 31, 2025, December 31, 2024 and December 31, 2023. 2025 2024 2023 Average Balance Interest Expense Average Rate Paid Average Balance Interest Expense Average Rate Paid Average Balance Interest Expense Average Rate Paid (In thousands) Non-interest-bearing demand and transaction deposits $ 2,929,346 $ — 0.00 % $ 3,373,047 $ — 0.00 % $ 3,045,013 $ — 0.00 % NOW accounts 175,293 1,131 0.65 % 187,996 1,887 1.00 % 193,765 1,804 0.93 % Money market deposit accounts 3,959,733 108,866 2.75 % 3,178,206 92,747 2.92 % 2,787,911 54,334 1.95 % Savings accounts 330,851 4,212 1.27 % 333,770 4,728 1.42 % 362,731 3,680 1.01 % Time deposits 213,261 7,345 3.44 % 210,599 7,706 3.66 % 167,167 3,452 2.07 % Brokered CDs — — — % 122,035 6,393 5.24 % 364,833 17,854 4.89 % $ 7,608,484 $ 121,554 1.60 % $ 7,405,653 $ 113,461 1.53 % $ 6,921,420 $ 81,124 1.17 % With participation through ICS, our off-balance sheet deposits totaled $1.05 billion at December 31, 2025, and zero at December 31, 2024.
For the year ended December 31, 2022, the allowance on loans presented is the allowance for loan losses using the incurred loss model. 67 Year Ended December 31, (In thousands) 2024 2023 2022 Beginning balance $ 65,691 $ 45,031 $ 35,866 Adoption of ASU No. 2016-13 — 21,229 — Loan charge-offs: Commercial portfolio: Commercial and industrial (8,144) (1,726) — Multifamily (510) (2,367) (416) Construction and land development — (4,664) (389) Retail portfolio: Residential real estate lending (1,182) (65) (2,448) Consumer solar (7,694) (6,966) (4,942) Consumer and other (320) (270) (201) Total loan charge-offs (17,850) (16,058) (8,396) Recoveries of loans previously charged-off: Commercial portfolio: Commercial and industrial 78 53 274 Multifamily — 20 — Construction and land development 398 — 2 Retail portfolio: Residential real estate lending 992 706 1,800 Consumer solar 372 1,211 423 Consumer and other 52 36 60 Total loan recoveries 1,892 2,026 2,559 Net charge-offs (15,958) (14,032) (5,837) Provision for credit losses 10,353 13,463 15,002 Balance at end of period $ 60,086 $ 65,691 $ 45,031 The allowance for credit losses decreased $5.6 million to $60.1 million at December 31, 2024 from $65.7 million at December 31, 2023.
The following table presents, by loan type, the changes in the allowance for the periods indicated. 65 Year Ended December 31, (In thousands) 2025 2024 2023 Balance at beginning period $ 60,086 $ 65,691 $ 45,031 Adoption of ASU No. 2016-13 — — 21,229 Loan charge-offs: Commercial portfolio: Commercial and industrial (10,366) (8,144) (1,726) Multifamily (2,471) (510) (2,367) Construction and land development — — (4,664) Retail portfolio: Residential real estate lending (304) (1,182) (65) Consumer solar (10,140) (7,694) (6,966) Consumer and other (171) (320) (270) Total loan charge-offs (23,452) (17,850) (16,058) Recoveries of loans previously charged-off: Commercial portfolio: Commercial and industrial 297 78 53 Multifamily — — 20 Construction and land development — 398 — Retail portfolio: Residential real estate lending 782 992 706 Consumer solar 2,153 372 1,211 Consumer and other 84 52 36 Total loan recoveries 3,316 1,892 2,026 Net charge-offs (20,136) (15,958) (14,032) Provision for credit losses 17,636 10,353 13,463 Balance at end of period $ 57,586 $ 60,086 $ 65,691 The allowance for credit losses decreased $2.5 million to $57.6 million at December 31, 2025 from $60.1 million at December 31, 2024.
Resell Agreements As of December 31, 2024, w e entered into $23.7 million in short term investments of resell agreements backed by residential mortgage loans, with a weighted interest rate of 6.91%.
Resell Agreements As of December 31, 2025, w e entered into $48.7 million in short term investments of resell agreements backed by government guaranteed loans and other loans, with a weighted interest rate of 6.00%.
We incur interest expense from interest paid on interest-bearing liabilities, including interest-bearing deposits, FHLBNY advances, subordinated debt, and other borrowings. To evaluate net interest income, we measure and monitor (i) yields on our loans 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.
To evaluate net interest income, we measure and monitor (i) yields on our loans 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.
Additionally, mortgage loans with an unpaid principal balance of $2.45 billion 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.
Additionally, as of December 31, 2025 and December 31, 2024, mortgage loans with an unpaid principal balance of $2.33 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.
During the year ended 2024, the multifamily loan portfolio increased by 17.7% from $1.15 billion at December 31, 2023. CRE. Our CRE loans are used to purchase or refinance office buildings, owner-occupied office buildings, retail centers, industrial facilities, mixed-used buildings, and education centers.
During the year ended 2025, the multifamily loan portfolio increased by 21.6% from $1.35 billion at December 31, 2024. CRE. Our CRE loans are used to purchase or refinance office buildings, owner-occupied office buildings, retail centers, industrial facilities and mixed-used buildings. CRE loans have 64% of their exposure in New York City.
Our residential real estate lending loans totaled $1.31 billion at December 31, 2024, which comprised 76.7% of our retail loan portfolio and 28.1% of our total loan portfolio. During the year ended December 31, 2024, our residential real estate lending loans decreased by 7.9% from $1.43 billion at December 31, 2023. Consumer solar.
Our residential real estate lending loans totaled $1.24 billion at December 31, 2025, which comprised 77.8% of our retail loan portfolio and 25.0% of our total loan portfolio. During the year ended December 31, 2025, our residential real estate lending loans decreased by 5.8% from $1.31 billion at December 31, 2024.
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.
We apply benchmark rates for the prepayment and curtailment assumptions for statistical reference. 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.
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.
Net interest margin is equal to the annualized net interest income divided by average net interest-earning assets. Average balances were derived from average daily balances. 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.
(3) Includes prepayment penalty income in 2024, 2023, and 2022 of $0.1 million, $0.1 million, and $1.7 million, respectively. Net interest income was $282.4 million for the year ended December 31, 2024, compared to $261.3 million for the same period in 2023.
(3) Includes prepayment penalty income in 2025, 2024, and 2023 of $1.1 million, $0.1 million, and $0.1 million, respectively. Net interest income was $297.8 million for the year ended December 31, 2025, compared to $282.4 million for the same period in 2024. The $15.4 million, or 5.4% increase was primarily attributable to an increase in yields earned on loans.
The increase was primarily due to an $8.0 million increase in compensation expense due to increased headcount, corporate incentive payments, and temporary personnel costs, and a $2.1 million increase in data processing expense, offset by a $0.5 million decrease in advertising and promotion expense, a $0.5 million decrease in occupancy and depreciation expense, a $0.3 million decrease in office maintenance and depreciation expense, and a $0.2 million decrease in amortization of intangible assets.
The increase was primarily due to an $4.8 million increase in compensation expense due to increased headcount, corporate incentive payments, and temporary personnel costs, a $4.3 million increase in professional fees, and a $4.3 million increase in technology expense, offset by a $1.4 million decrease in advertising and promotion expense.
The increase in charges during the year ended December 31, 2024 was primarily due to utilization of a custodial deposit transference structure through the IntraFi Insured Cash Sweep network ("ICS") 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").
Service charges on deposit accounts includes service charges income generated from our retail deposit business, which includes a custodial deposit transference structure through the ICS 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").
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, sales of loans, and other real estate owned, income from equity method investments, and other income. 58 The following table presents our non-interest income for the periods indicated: Year Ended December 31, (In thousands) 2024 2023 2022 Trust Department fees $ 15,186 $ 15,175 $ 14,449 Service charges on deposit accounts 32,178 10,999 10,999 Bank-owned life insurance income 2,498 2,882 3,868 Losses on sale of securities (9,698) (7,392) (3,637) Gain (loss) on sale of loans and changes in fair value on loans held-for-sale, net (8,197) 32 (610) Loss on other real estate owned, net — — (168) Equity method investments income (loss) (831) 4,932 (2,773) Other income 2,079 2,708 1,769 Total non-interest income $ 33,215 $ 29,336 $ 23,897 Non-interest income was $33.2 million for the year ended December 31, 2024, compared to $29.3 million for the same period in 2023, an increase of $3.9 million.
The following table presents our non-interest income for the periods indicated: Year Ended December 31, 2025 2024 2023 Trust Department fees $ 16,181 $ 15,186 $ 15,175 Service charges on deposit accounts 17,502 32,178 10,999 Bank-owned life insurance income 3,124 2,498 2,882 Losses on sale of securities and other assets, net (3,431) (9,698) (7,392) Gain (loss) on sale of loans and changes in fair value on loans held-for-sale, net (2,720) (8,197) 32 Equity method investments income (loss) (1,733) (831) 4,932 Other income 2,017 2,079 2,708 Total non-interest income $ 30,940 $ 33,215 $ 29,336 Non-interest income was $30.9 million for the year ended December 31, 2025, compared to $33.2 million for the same period in 2024, a decrease of $2.3 million.
As of December 31, 2024, our total assets were $8.26 billion, our total loans, net of deferred fees and allowance were $4.61 billion, our total deposits were $7.18 billion, and our stockholders' equity was $707.7 million. As of December 31, 2024, our trust business held $35.02 billion in assets under custody and $14.62 billion in assets under management.
As of December 31, 2025, our total assets were $8.87 billion, our total loans, net of deferred fees and allowance were $4.90 billion, our total deposits were $7.95 billion, and our stockholders' equity was $794.5 million. As of December 31, 2025, our trust business held $38.63 billion in assets under custody and $16.63 billion in assets under management.
Recently Issued Accounting Pronouncements See Note 2 of our consolidated financial statements, which are included beginning on page 94 of this report for a discussion of recently issued accounting pronouncements that have been or will be adopted by us that will require enhanced disclosures in our financial statements in future periods.
Recently Issued Accounting Pronouncements See Note 2 of our consolidated financial statements, which are included beginning on page 93 of this report for a discussion of recently issued accounting pronouncements that have been or will be adopted by us that will require enhanced disclosures in our financial statements in future periods. 54 Impact of Inflation and Changing Interest Rates Our consolidated financial statements have been prepared in accordance with GAAP, which requires us to measure financial position and operating results primarily in terms of historic dollars.
Equity method investments loss was $0.8 million in the year ended December 31, 2024, compared to an income of $4.9 million for the same period in 2023. 59 Non-Interest Expense The following table presents non-interest expense for the periods indicated: Year Ended December 31, (In thousands) 2024 2023 2022 Compensation and employee benefits $ 93,766 $ 85,774 $ 74,712 Occupancy and depreciation 13,081 13,605 13,723 Professional fees 9,957 9,637 10,417 Data processing 19,802 17,744 17,732 Office maintenance and depreciation 2,471 2,830 3,012 Amortization of intangible assets 730 888 1,046 Advertising and promotion 3,731 4,181 3,741 Federal deposit insurance premiums 3,715 4,018 3,228 Other expense 12,519 12,570 12,960 Total non-interest expense $ 159,772 $ 151,247 140,571 Non-interest expense for the year ended December 31, 2024 was $159.8 million, an increase of $8.6 million from $151.2 million for the year ended December 31, 2023.
Non-Interest Expense The following table presents non-interest expense for the periods indicated: Year Ended December 31, 2025 2024 2023 Compensation and employee benefits $ 98,555 $ 93,766 $ 85,774 Occupancy and depreciation 13,385 13,081 13,605 Professional fees 14,301 9,957 9,637 Technology 24,075 19,802 17,744 Office maintenance and depreciation 2,145 2,471 2,830 Amortization of intangible assets 574 730 888 Advertising and promotion 2,353 3,731 4,181 Federal deposit insurance premiums 3,775 3,715 4,018 Other expense 13,083 12,519 12,570 Total non-interest expense $ 172,246 $ 159,772 $ 151,247 Non-interest expense for the year ended December 31, 2025 was $172.2 million, an increase of $12.5 million from $159.8 million for the year ended December 31, 2024.
The $29.8 million, or 32.9%, decrease is due to normal business activities, strategic investment securities sales, and borrowings. Our available for sale securities at December 31, 2024 were $1.63 billion, or 19.7% of total assets, compared to $1.48 billion, or 18.6% of total assets at December 31, 2023.
The $230.5 million, or 379.4%, increase is due to normal business activities and strategic investment securities sales, offset by paydowns of borrowings and strategic investment securities purchases. Our available for sale securities at December 31, 2025 were $1.78 billion, or 20.1% of total assets, compared to $1.63 billion, or 19.7% of total assets at December 31, 2024.
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.
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 capital conservation is equal to 2.5% of risk-weighted assets. 75 The following table shows the regulatory capital ratios for the Company and the Bank at the dates indicated: Actual For Capital Adequacy Purposes (1) To Be Considered Well Capitalized Actual Ratio Amount Ratio Amount Ratio (In thousands) 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 % December 31, 2023 Consolidated: Total capital to risk weighted assets $ 788,207 15.64 % $ 403,277 8.00 % N/A N/A Tier 1 capital to risk weighted assets 654,555 12.98 % 302,458 6.00 % N/A N/A Tier 1 capital to average assets 654,555 8.07 % 324,511 4.00 % N/A N/A Common equity tier 1 to risk weighted assets 654,555 12.98 % 226,843 4.50 % N/A N/A Bank: Total capital to risk weighted assets $ 752,828 14.93 % $ 403,266 8.00 % $ 504,083 10.00 % Tier 1 capital to risk weighted assets 689,724 13.68 % 302,450 6.00 % 403,266 8.00 % Tier 1 capital to average assets 689,724 8.50 % 324,515 4.00 % 405,643 5.00 % Common equity tier 1 to risk weighted assets 689,724 13.68 % 226,837 4.50 % 327,654 6.50 % (1) Amounts are shown exclusive of the capital conservation buffer of 2.50%.
The following table shows the regulatory capital ratios for the Company and the Bank at the dates indicated: Actual For Capital Adequacy Purposes (1) To Be Considered Well Capitalized Actual Ratio Amount Ratio Amount Ratio (In thousands) December, 31, 2025 Consolidated: Total capital to risk weighted assets $ 936,532 16.40 % $ 456,875 8.00 % N/A N/A Tier 1 capital to risk weighted assets 812,379 14.23 % 342,656 6.00 % N/A N/A Tier 1 capital to average assets 812,379 9.36 % 347,198 4.00 % N/A N/A Common equity tier 1 to risk weighted assets 812,379 14.23 % 256,992 4.50 % N/A N/A Bank: Total capital to risk weighted assets $ 890,991 15.64 % $ 455,612 8.00 % $ 569,515 10.00 % Tier 1 capital to risk weighted assets 830,625 14.58 % 341,709 6.00 % 455,612 8.00 % Tier 1 capital to average assets 830,625 9.63 % 345,109 4.00 % 431,387 5.00 % Common equity tier 1 to risk weighted assets 830,625 14.58 % 256,282 4.50 % 370,185 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%.
Notable changes within individual balance sheet line items include a $267.2 million increase in loans receivable, a $168.6 million increase in total deposits, a $35.4 million increase in investment securities, and a $246.3 million increase in FHLB advances, offset by a $230.0 million decrease in other borrowings, a $29.8 million decrease in cash and equivalents and a $26.3 million decrease in resell agreements.
Notable changes within individual balance sheet line items include a $768.6 million increase in total deposits, a $286.8 million increase in loans receivable, a $230.5 million increase in cash and equivalents, a $122.3 million increase in investment securities, a $24.9 million increase in resell agreements, and a $244.9 million decrease in borrowings.
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 borrower delinquency trends and nonaccrual status, probability of foreclosure or note sale, changes in the borrower’s circumstances or cash collections, borrower’s industry, or other facts and circumstances of the loan or collateral.
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.
While interest rates are greatly influenced by changes in the inflation rate, they do not necessarily change at the same rate or in the same magnitude as the inflation rate.
Therefore, the effect of changes in interest rates will have a more significant effect on our performance than will the effect of changing prices and inflation in general. While interest rates are greatly influenced by changes in the inflation rate, they do not necessarily change at the same rate or in the same magnitude as the inflation rate.
This was largely due to the continued loan growth, as well as increase in yields earned on loans and securities outpacing the increase in the cost of funds. The yield on average earning assets was 4.99% for the year ended December 31, 2024, compared to 4.67% for the same period in 2023, an increase of 32 basis points.
The yield on average earning assets was 5.09% for the year ended December 31, 2025, compared to 4.99% for the same period in 2024, an increase of 10 basis points. This increase was driven primarily by an increase in average loan balances as well as loan yields.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

3 edited+0 added−0 removed22 unchanged
Biggest changeChange in Market Interest Rates as of December 31, 2024 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 -19.6% (317,148) -7.1% (21,249) +200 basis points -11.8% (191,348) -3.1% (9,346) +100 basis points -4.5% (72,895) -0.7% (2,047) -100 basis points -0.5% (7,698) -2.1% (6,390) -200 basis points -5.8% (93,436) -5.5% (16,534) -300 basis points -16.4% (264,541.1) -9% (27,389) -400 basis points -36.1% (583,218.2) -15% (44,716) 78
Biggest changeChange in Market Interest Rates as of December 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 -16.4% (312,978) -3.1% (10,544) +200 basis points -9.7% (184,432) -0.4% (1,373) +100 basis points -3.5% (67,364) 0.7% 2,296 -100 basis points -1.3% (24,372) -2.8% (9,433) -200 basis points -8.7% (166,303) -7.3% (24,481) -300 basis points -22.9% (436,627.0) -12% (41,030) -400 basis points -48.5% (924,031.0) -17% (57,329) 76
The projections assume immediate, parallel shifts 77 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.
The projections assume immediate, parallel shifts 75 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.
Potential changes to our net interest income and economic value of equity in hypothetical rising and declining rate scenarios calculated as of December 31, 2024 are presented in the following table.
Potential changes to our net interest income and economic value of equity in hypothetical rising and declining rate scenarios calculated as of December 31, 2025 are presented in the following table.

Other AMAL 10-K year-over-year comparisons