10q10k10q10k.net

What changed in Amalgamated Financial Corp.'s 10-K — 2023 vs 2024

vs

Paragraph-level year-over-year comparison of Amalgamated Financial Corp.'s 2023 and 2024 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 2024 report.

+412 added−445 removedSource: 10-K (2025-03-06) vs 10-K (2024-03-07)

Top changes in Amalgamated Financial Corp.'s 2024 10-K

412 paragraphs added · 445 removed · 345 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

129 edited+18 added−50 removed225 unchanged
Biggest changeDeposit Premiums and Assessments As an FDIC-insured bank, we must pay deposit insurance assessments to the FDIC based on our average total assets minus our average tangible equity. Deposits are insured up to applicable limits by the FDIC and such insurance is backed by the full faith and credit of the U.S. Government.
Biggest changeDeposits are insured up to applicable limits by the FDIC and such insurance is backed by the full faith and credit of the U.S. Government. As an institution with less than $10 billion in assets, our assessment rates are based on the level of risk we pose to the FDIC’s deposit insurance fund (DIF).
Item 1. Business General Overview Amalgamated Financial Corp., a Delaware public benefit corporation ("we" or the "Company"), was formed on August 25, 2020 to serve as the holding company for Amalgamated Bank and is a bank holding company registered with the Board of Governors of the Federal Reserve under the Bank Holding Company Act of 1956, as amended.
Item 1. Business General Overview Amalgamated Financial Corp., a Delaware public benefit corporation ("we" or the "Company"), was formed on August 25, 2020 to serve as the holding company for Amalgamated Bank (the "Bank") and is a bank holding company registered with the Board of Governors of the Federal Reserve under the Bank Holding Company Act of 1956, as amended.
Within our operational emission, we measure our Scope 1, Scope 2 and Scope 3 greenhouse gas emissions and purchase carbon offsets for any unavoidable carbon emissions. As part of our net zero climate targets, we are also seeking to reduce our direct or "operational" emissions to net zero by 2030.
Within our operational emission, we measure our Scope 1, Scope 2 and Scope 3 greenhouse gas emissions and purchase carbon offsets for any unavoidable carbon emissions. As part of our net zero 3 climate targets, we are also seeking to reduce our direct or "operational" emissions to net zero by 2030.
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.
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.
The USA PATRIOT Act provides, in part, for the facilitation of information sharing among governmental entities and financial institutions for the purpose of combating terrorism and money laundering by enhancing anti-money laundering and financial transparency laws, as well as enhanced information collection tools and enforcement mechanisms for the U.S. government, including: • due diligence requirements for financial institutions that administer, maintain, or manage private bank accounts or correspondent accounts for non-U.S. persons; 27 • requiring standards for verifying customer identification at account opening; • rules to promote cooperation among financial institutions, regulators and law enforcement entities in identifying parties that may be involved in terrorism or money laundering; • reports by nonfinancial trades and businesses filed with the Treasury Department’s Financial Crimes Enforcement Network for transactions exceeding $10,000; and • filing suspicious activities reports by brokers and dealers if they believe a customer may be violating U.S. laws and regulations.
The USA PATRIOT Act provides, in part, for the facilitation of information sharing among governmental entities and financial institutions for the purpose of combating terrorism and money laundering by enhancing anti-money laundering and financial transparency laws, as well as enhanced information collection tools and enforcement mechanisms for the U.S. government, including: • due diligence requirements for financial institutions that administer, maintain, or manage private bank accounts or correspondent accounts for non-U.S. persons; • requiring standards for verifying customer identification at account opening; • rules to promote cooperation among financial institutions, regulators and law enforcement entities in identifying parties that may be involved in terrorism or money laundering; • reports by nonfinancial trades and businesses filed with the Treasury Department’s Financial Crimes Enforcement Network for transactions exceeding $10,000; and • filing suspicious activities reports by brokers and dealers if they believe a customer may be violating U.S. laws and regulations.
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; 24 • 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; 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.
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. 16 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.
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.
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 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 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.
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.
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.
In recent years, regulators have expressed concern over banking institutions’ compliance with anti-money laundering requirements and, in some cases, have delayed approval of their expansionary proposals. The regulators and other governmental authorities have been active in imposing “cease 26 and desist” orders and significant money penalty sanctions against institutions found to be in violation of the anti-money laundering regulations.
In recent years, regulators have expressed concern over banking institutions’ compliance with anti-money laundering requirements and, in some cases, have delayed approval of their expansionary proposals. The regulators and other governmental authorities have been active in imposing “cease and desist” orders and significant money penalty sanctions against institutions found to be in violation of the anti-money laundering regulations.
The scope and content of the federal banking agencies’ policies on incentive compensation are continuing to develop and are likely to continue evolving. 29 In October 2016, the NYDFS also announced a renewed focus on employee incentive arrangements and issued guidance to New York State-regulated banks to ensure that these arrangements do not encourage inappropriate practices.
The scope and content of the federal banking agencies’ policies on incentive compensation are continuing to develop and are likely to continue evolving. In October 2016, the NYDFS also announced a renewed focus on employee incentive arrangements and issued guidance to New York State-regulated banks to ensure that these arrangements do not encourage inappropriate practices.
On March 1, 2021 (the “Effective Date”), the Company acquired all of the outstanding stock of Amalgamated Bank, a New York state-chartered commercial bank in a statutory share exchange transaction (the “Reorganization”) effected under New York law and in accordance with the terms of a Plan of Acquisition dated September 4, 2020 (the “Agreement”).
On March 1, 2021 (the “Effective Date”), the Company acquired all of the outstanding stock of Amalgamated Bank, a New York state-chartered commercial bank in a statutory share exchange transaction (the “Reorganization”) effected under New York law and in accordance with the terms of a Plan of Acquisition dated September 4, 2020.
We use third party appraisers to appraise the properties on which we make CRE loans. We choose these appraisers from a small group of qualified individuals and firms based on the specific type of property and the geographic area in which the property is located. The appraisal review process has been outsourced.
We use third party appraisers to appraise the properties on which we make CRE loans. We choose these appraisers from a group of qualified individuals and firms based on the specific type of property and the geographic area in which the property is located. The appraisal review process has been outsourced.
Disruption in these markets could impact the economic circumstances of borrowers, the valuation of assets and borrower ability to meet lending terms on insurance coverage. We continue to embed climate risk into our business strategy, and we are committed to ambitious action through risk management programs.
Disruption in these markets could impact the economic circumstances of borrowers, the valuation of assets and borrower ability to meet lending terms on insurance coverage. We embed climate risk into our business strategy, and we are committed to ambitious action through risk management programs.
We believe a key benefit of our differentiated business model is our flexibility to allocate our excess liquidity to achieve attractive risk-adjusted returns. Our 7 earning asset mix today is composed of a combination of loans to target commercial customers, various types of real estate loans, and securities.
We believe a key benefit of our differentiated business model is our flexibility to allocate our excess liquidity to achieve attractive risk-adjusted returns. Our earning asset mix today is composed of a combination of loans to target commercial customers, various types of real estate loans, and securities.
The federal banking regulators also previously issued guidance in December 2006, entitled “Interagency Guidance on Concentrations in CRE Lending, Sound Risk Management Practices,” which stated that an institution that is potentially exposed to significant CRE concentration 30 risk should employ enhanced risk management practices.
The federal banking regulators also previously issued guidance in December 2006, entitled “Interagency Guidance on Concentrations in CRE Lending, Sound Risk Management Practices,” which stated that an institution that is potentially exposed to significant CRE concentration risk should employ enhanced risk management practices.
We also compete with local banks, some of which may offer aggressive pricing and unique terms on various types of loans. 5 In retail banking, we primarily compete with banks that have a visible retail presence and personnel in our market areas.
We also compete with local banks, some of which may offer aggressive pricing and unique terms on various types of loans. In retail banking, we primarily compete with banks that have a visible retail presence and personnel in our market areas.
There are no automatic factors that preclude a loan from being approved as we focus on the totality of the credit 10 opportunity including the borrower’s financial strength, industry, loan structure, strategic fit, and economics.
There are no automatic factors that preclude a loan from being approved as we focus on the totality of the credit opportunity including the borrower’s financial strength, industry, loan structure, strategic fit, and economics.
All C&I loans in excess of $1 million are reviewed at least annually, or quarterly based on size criteria. Pass-rated CRE and multifamily loans are reviewed annually or biannually based on size and location, and all criticized and classified loans are reviewed monthly.
All C&I loans in excess of $1 million are reviewed at least annually, or quarterly based on size and credit criteria. Pass-rated CRE and multifamily loans are reviewed annually or biannually based on size and location, and all criticized and classified loans are reviewed monthly.
We made this opt-out election in order to avoid significant variations in the level of capital depending upon the impact of interest rate fluctuations on the fair value of our investment securities portfolio. 21 In addition, in order to avoid restrictions on capital distributions or discretionary bonus payments to executives, under Basel III, a banking organization must maintain a “capital conservation buffer” on top of its minimum risk-based capital requirements.
We made this opt-out election in order to avoid significant variations in the level of capital depending upon the impact of interest rate fluctuations on the fair value of our investment securities portfolio. 19 In addition, in order to avoid restrictions on capital distributions or discretionary bonus payments to executives, under Basel III, a banking organization must maintain a “capital conservation buffer” on top of its minimum risk-based capital requirements.
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 manager.
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.
Regulation W generally excludes all non-bank and non-savings association subsidiaries of banks from treatment as affiliates, except to the extent that the Federal Reserve decides to treat these subsidiaries as affiliates. 19 Amalgamated Bank General As a New York state-chartered bank with FDIC-insured deposits, we are examined, supervised and regulated by the NYDFS, our primary regulator and the FDIC, our primary federal regulator.
Regulation W generally excludes all non-bank and non-savings association subsidiaries of banks from treatment as affiliates, except to the extent that the Federal Reserve decides to treat these subsidiaries as affiliates. 17 Amalgamated Bank General As a New York state-chartered bank with FDIC-insured deposits, we are examined, supervised and regulated by the NYDFS, our primary regulator and the FDIC, our primary federal regulator.
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, 2023, 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, 2024, our capital ratios exceeded the minimum ratios established for a “well capitalized” institution.
In addition, states are permitted to adopt consumer protection laws and regulations that are stricter than the regulations promulgated by the CFPB, and state attorneys general are permitted to enforce consumer protection rules adopted by the CFPB against certain institutions. 25 The CFPB has issued a number of significant rules that impact nearly every aspect of the lifecycle of consumer financial products and services, including rules regarding a residential mortgage loan.
In addition, states are permitted to adopt consumer protection laws and regulations that are stricter than the regulations promulgated by the CFPB, and state attorneys general are permitted to enforce consumer protection rules adopted by the CFPB against certain institutions. 23 The CFPB has issued a number of significant rules that impact nearly every aspect of the lifecycle of consumer financial products and services, including rules regarding a residential mortgage loan.
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 ("SEIU") and American Federation of Teachers ("AFT").
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.
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, 2023, 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, 2024, our regulatory limit on loans-to-one borrower was approximately $123 million.
In the event of a bank holding company’s bankruptcy, any commitment by the bank holding company to a federal bank regulatory agency to maintain the capital of a subsidiary bank will be assumed by the bankruptcy trustee and entitled to a priority of payment. 18 Capital Requirements and Payment of Dividends The Federal Reserve imposes certain capital requirements on the bank holding companies under the BHC Act, including a minimum leverage ratio and a minimum ratio of “qualifying” capital to risk-weighted assets.
In the event of a bank holding company’s bankruptcy, any commitment by the bank holding company to a federal bank regulatory agency to maintain the capital of a subsidiary bank will be assumed by the bankruptcy trustee and entitled to a priority of payment. 16 Capital Requirements and Payment of Dividends The Federal Reserve imposes certain capital requirements on the bank holding companies under the BHC Act, including a minimum leverage ratio and a minimum ratio of “qualifying” capital to risk-weighted assets.
Since 2019, we have purchased $1.48 billion of PACE assessments backed by improvements to residential and commercial properties. The residential assessments were originated by three different companies and were backed mostly by properties from California and Florida. The average assessment-to-value at origination for our residential and commercial PACE portfolios is approximately 9% and 22%, respectively.
Since 2019, we have purchased $1.64 billion of PACE assessments backed by improvements to residential and commercial properties. The residential assessments were originated by three different companies and were backed mostly by properties from California and Florida. The average assessment-to-value at origination for our residential and commercial PACE portfolios is approximately 9% and 22%, respectively.
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 2023.
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 management Credit Committee approval limit is $25 million, any loan over $25 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. 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 President and Chief Executive Officer and members of executive management hold town hall-style meetings in-person and virtually with all employees, covering topics such as business strategy and outlook, our competitive landscape, emerging industry trends, employee recognition, and includes a question and answer session with management.
Culture and Employee Engagement Our President and Chief Executive Officer and members of executive management hold town hall-style meetings in-person and virtually with all employees, covering topics such as business strategy and outlook, our competitive landscape, emerging industry trends, employee recognition, and includes a question and answer session with management.
In calculating the carbon impact of Company operations, we report to the standards of the Greenhouse Gas Protocol and disclose our Scope 1, 2, and 3 emissions, including Scope 3 Category 15 which covers our balance sheet loans and investments as well as our Assets Under Management.
In calculating the carbon impact of Company operations, we report to the standards of the Greenhouse Gas Protocol and disclose our Scope 1, 2, and 3 emissions, including voluntarily for Scope 3 Category 15 which covers our balance sheet loans and investments as well as our Assets Under Management.
The information on our website is not incorporated by reference into this report. 15 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. 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.
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. 22 • 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. 20 • Undercapitalized —The institution fails to meet the required minimum level for any relevant capital measure.
Protecting our values-based franchise also requires disciplined risk and expense management, which we believe is essential to our business strategy. Commitment to our customers’ values is a central tenet of our differentiated business model and we expect it to continue to serve as the pillar of our broader business strategy.
Protecting our banking franchise also requires disciplined risk and expense management, which we believe is essential to our business strategy. Commitment to our customers’ values is a central tenet of our differentiated business model and we expect it to continue to serve as the pillar of our broader business strategy.
In addition, the FDIC 20 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 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.
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 48%.
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%.
On January 30, 2020, the Federal Reserve issued a final rule (which became effective September 30, 2020) that clarified and codified the Federal Reserve’s standards for determining whether one 17 company has control over another.
On January 30, 2020, the Federal Reserve issued a final rule (which became effective September 30, 2020) that clarified and codified the Federal Reserve’s standards for determining whether one 15 company has control over another.
Our deposit strategy enables us to attract commercial depositors that also borrow and invest with us. Our total deposit growth has increased at a 10.9% 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 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.
In addition, we are subject to increased regulations concerning consumer privacy, including the California Consumer Privacy Act ("CCPA") with respect to certain data regarding California residents and the NYDFS Cybersecurity Regulations, as amended by NYDFS in November 2023. The CFPB is an independent regulatory authority housed within the Federal Reserve.
In addition, we are subject to increased regulations concerning consumer privacy, including but not limited to the California Consumer Privacy Act ("CCPA") with respect to certain data regarding California residents and the NYDFS Cybersecurity Regulations, as amended by NYDFS in November 2023. The CFPB is an independent regulatory authority housed within the Federal Reserve.
For the years ended December 31, 2023 and December 31, 2022, we generated $15.2 million and $14.4 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, 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.
We are committed to 100% renewable energy across our corporate footprint where available. In 2023, 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. 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 generally apply stringent underwriting guidelines for LTV and debt service coverage ratios, which are intended to mitigate credit and concentration risk in this loan category. Our cumulative historical multifamily loss rate from January 1, 2019 through December 31, 2023 is 13 basis points. The average current LTV of our multifamily loans is approximately 54%.
We generally apply stringent underwriting guidelines for LTV and debt service coverage ratios, which are intended to mitigate credit and concentration risk in this loan category. Our cumulative historical multifamily loss rate from January 1, 2019 through December 31, 2024 is 9 basis points. The average current LTV of our multifamily loans is approximately 54%.
The Credit Policy Committee must approve any loan over $25 million, as well as specific programs that are new to the Bank or are subject to heightened risk.
The Credit Policy Committee must approve any loan over $35 million, as well as specific programs that are new to the Bank or are subject to heightened risk.
We bolstered our efforts in the Washington, D.C. market in 2012 and have generated a 11% compound annual deposit growth rate during the five-year period ended December 31, 2023. 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 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.
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 42% of our equity as of December 31, 2023.
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.
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 $6.58 billion as of December 31, 2023 and represented 94% 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 $6.94 billion as of December 31, 2024 and represented 97% of total deposits.
Underwriting and Credit Risk Management Underwriting. Certain credit risks are inherent in all loans. These include risks resulting from uncertainties in the future value of collateral, risks resulting from changes in economic and industry conditions, and risks inherent in dealing with individual borrowers.
Underwriting and Credit Risk Management Underwriting. Certain credit risks are inherent in all loans. These include risks resulting from uncertainties in the future value of collateral, risks resulting from changes in economic and industry conditions, changing regulatory requirements, and risks inherent in dealing with individual borrowers.
The following table presents our CRE portfolio composition by property type at December 31, 2023: Property Type % of Portfolio Office 17.4 % Office - Owner Occupied 8.7 % Retail 15.7 % Industrial 23.8 % Mixed Use 6.0 % Education 13.0 % Other 15.6 % Total 100.0 % At December 31, 2023 our total multifamily portfolio is $1.15 billion, and our total multifamily loan exposure in New York State is approximately $775.1 million.
The following table presents our CRE portfolio composition by property type at December 31, 2024: Property Type % of Portfolio Office 17.4 % Office - Owner Occupied 8.7 % Retail 15.7 % Industrial 23.8 % Mixed Use 6.0 % Education 13.0 % Other 15.6 % Total 100.0 % At December 31, 2024 our total multifamily portfolio is $1.35 billion, and our total multifamily loan exposure in New York State is approximately $951.4 million.
Approximately 74% of these loans are to buildings with at least one rent regulated unit. 8 Securities Our securities portfolio primarily consists of high quality investments in mortgage-backed securities to government sponsored entities, other asset-backed securities and Property Assessed Clean Energy ("PACE") investments.
Approximately 73% of these loans are to buildings with at least one rent regulated unit. 7 Securities Our securities portfolio primarily consists of high quality investments in mortgage-backed securities to government sponsored entities, other asset-backed securities and Property Assessed Clean Energy ("PACE") investments.
Our business, financial condition, results of operations or prospects may be adversely affected, perhaps materially, as a result. 31
Our business, financial condition, results of operations or prospects may be adversely affected, perhaps materially, as a result. 29
We have a very small market share of the total deposit-gathering or lending activities in the metropolitan areas of New York City, Washington, D.C., Boston, and San Francisco. In the financial services industry, market demands, technological and regulatory changes and economic pressures have increased competition among banks, as well as other financial institutions.
We have a small but growing market share of the total deposit-gathering or lending activities in the metropolitan areas of New York City, Washington, D.C., Boston, and San Francisco. In the financial services industry, market demands, technology advances, regulatory changes and economic pressures have increased competition among banks, as well as other financial institutions.
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.
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.
Physical risk can lead to increased credit risk by diminishing borrowers’ repayment capacity or impacting the value of collateral. The Bank is closely monitoring 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. 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.
We added $319.7 million in PACE assets in 2023. PACE assessments are generally non-rated pass-through securities with no structural protections or guarantees added at the security level. Our Business Strategy We have a clearly defined mission to be America’s socially responsible bank, empowering organizations and individuals to advance positive social change.
We added $156.9 million in PACE assets in 2024. PACE assessments are generally non-rated pass-through securities with no structural protections or guarantees added at the security level. Our Business Strategy We have a clearly defined mission to be America’s socially responsible bank, empowering organizations and individuals to advance positive change.
We also own portfolios of purchased one-to-four family loans, representing 3.1% of total assets as of December 31, 2023. Multifamily and CRE A substantial portion of our portfolio is composed of multifamily loans made to customers in New York, predominantly for rent-stabilized buildings.
We also own portfolios of purchased one-to-four family loans, representing 2.9% of total assets as of December 31, 2024. Multifamily and CRE A substantial portion of our portfolio is composed of multifamily loans made to customers in New York, predominantly for rent-stabilized buildings.
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 85.6% carry AAA credit ratings and 14.4% carry A credit ratings or higher. As of December 31, 2023, 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 86.1% 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.
These market dynamics in the financial services industry have increased the number of new bank and non-bank competitors and have increased customer awareness of product and service differences among 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. We primarily face competition from the five major categories of competitors listed below.
Among other responsibilities, the management Credit Committee reviews and approves (i) all C&I and CRE non-multifamily commercial credit exposure requests greater than $7 million; (ii) CRE multifamily credit exposure requests greater than $10 million; and (iii) approves residential lending credit requests of more than $2 million.
Among other responsibilities, the Management Credit Committee reviews and approves (i) all C&I and CRE non-multifamily commercial credit exposure requests greater than $20 million; (ii) CRE multifamily credit exposure requests greater than $20 million; and (iii) approves residential lending credit requests of more than $3 million.
In our employee recruitment and selection process and operation of our business, we adhere to equal employment opportunity policies and provide annual employee trainings on DEI. We have established employee resource groups to support employees from marginalized populations to help cultivate a healthy workplace culture.
In our employee recruitment and selection process and operation of our business, we adhere to equal employment opportunity policies and provide annual employee trainings on ethics and workplace conduct. We have established employee resource groups to support employees and help cultivate a healthy workplace culture.
The Bank is a supporter of the Task Force on Climate Related Financial Disclosures ("TCFD") and follows the TCFD framework across governance, strategy, risk management and targets for disclosing clear, comparable and consistent information about our risks and opportunities presented by climate change.
The Bank uses the Task Force on Climate Related Financial Disclosures ("TCFD") framework across governance, strategy, risk management and targets for disclosing clear, comparable and consistent information about our risks and opportunities presented by climate change.
Our product line includes residential mortgage loans, commercial and industrial ("C&I") loans, commercial real estate ("CRE") loans, multifamily loans, consumer loans (predominantly residential solar) and a variety of commercial and consumer deposit products, including non-interest-bearing accounts, interest-bearing demand products, savings accounts, money market accounts and certificates of deposit.
Our corporate divisions include Commercial Banking, Trust and Investment Management and Consumer Banking. Product line includes residential mortgage loans, commercial and industrial ("C&I") loans, commercial real estate ("CRE") loans, multifamily loans, consumer loans (predominantly residential solar) and a variety of commercial and consumer deposit products, including non-interest-bearing accounts, interest-bearing demand products, savings accounts, money market accounts and certificates of deposit.
Under the direction of our Board of Directors (the "Board") and executive management, we are diligent in fulfilling our mission to be America’s socially responsible bank, empowering organizations and individuals to advance positive social change.
Under the direction of our Board of Directors (the "Board") and executive management, we are diligent in fulfilling our mission to be America’s socially responsible bank, empowering organizations and individuals to advance positive change. The full Board of Directors oversees our Corporate Social Responsibility activities and communications.
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.
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.
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.
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 growth of our commercial banking business has contributed to our trust, custody and investment management services business in recent years. As of December 31, 2023, we had over 1,000 custody accounts with $41.66 billion in assets under custody and approximately 500 investment management accounts with $14.82 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, 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.
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.
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.
Our total deposit base is composed of 42% non-interest-bearing accounts and has an average cost of deposits of only 117 basis points for the year ended December 31, 2023.
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.
There is a restricted industries and activities list; a loan falling within a restricted industry or activity may still be approved on an exception basis. The review of such a loan must include a review of the mitigations for the exception and a reason to continue considering the loan.
The Bank maintains a restricted industries and activities list according to its risk appetite; a loan falling within a restricted industry or activity may still be approved on an exception basis. The review of such a loan must include a review of the mitigations for the exception and a reason to continue considering the loan.
We intend to continue evaluating opportunities to efficiently expand our geographic footprint into other large metropolitan areas throughout the United States that share the same characteristics as our other current markets. 9 Grow 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 We have been dedicated to serving the investment needs of our institutional clients for more than 40 years.
We expect that our lending strategy will continue to consist of real estate and C&I loans as well as purchases of high-quality loans such as government guaranteed loans supported by the Small Business Administration or the United States Department of Agriculture, consumer loans focused on mission-aligned solar panel installations, or syndicated loans originated by other financial institutions with a track record of strong credit quality and prudent underwriting.
We expect that our lending strategy will continue to consist of commercial real estate loans, C&I loans, and clean energy project finance, as well as purchases of high-quality loans such as government guaranteed loans supported by the Small Business Administration or the United States Department of Agriculture, or syndicated loans originated by other financial institutions with a track record of strong credit quality and prudent underwriting.
Given the fluidity of health and safety concerns since the start of the COVID-19 pandemic in 2020, we leverage federal, state, and local guidelines and requirements, in addition to consultation with an external healthcare consulting firm to guide our health and safety protocols. Significant Subsidiaries The Company owns all of the capital stock of the Bank.
We leverage federal, state, and local guidelines and requirements, in addition to consultation with an external healthcare consulting firm to guide our health and safety protocols. Significant Subsidiaries The Company owns all of the capital stock of the Bank.
This relief has been extended and expired on January 1, 2023. Incentive Compensation Guidelines adopted by the federal banking agencies pursuant to the FDIA prohibit excessive compensation as an unsafe and unsound practice and describe compensation as excessive when the amounts paid are unreasonable or disproportionate to the services performed by an executive officer, employee, director or principal stockholder.
Incentive Compensation Guidelines adopted by the federal banking agencies pursuant to the FDIA prohibit excessive compensation as an unsafe and unsound practice and describe compensation as excessive when the amounts paid are unreasonable or disproportionate to the services performed by an executive officer, employee, director or principal stockholder.
Total base assessment after possible adjustments now ranges between 1.5 and 40 basis points. 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), and (iii) a brokered deposit adjustment.
Geographic Expansion We intend to consider strategic expansions into new markets that have a large 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, 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 organically through our expansion into Washington, D.C. and through the completed acquisition of New Resource Bank in 2018, based in San Francisco.
In each case, we rely on our focus on our socially responsible mission and on consumer products at a local and increasingly national level to attract mission-aligned customers and compete against these competitors. • Local and regional bank competition within our branch footprint of the metropolitan areas of New York City, Washington, D.C., and San Francisco and our commercial office in Boston.
In each case, we rely on our focus on our socially responsible banking model to attract mission-aligned customers to successfully compete. • Local and regional bank competition within our branch footprint of the metropolitan areas of New York City, Washington, D.C., and San Francisco and our commercial office in Boston.
Our Business Model We are a full-service commercial bank offering a broad range of deposit products, trust and investment management services, and lending services. We generate relationship deposits from our values-based commercial clients and consumer customers.
We are a full-service commercial bank offering a complete suite of commercial and retail banking products, investment management and trust and custody services, and lending services. We generate relationship deposits from our values-based commercial clients and consumer customers.
Human Capital Resources Our People As of December 31, 2023, we had 425 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.
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.
Approximately 46.6% of this portfolio is classified as “available for sale.” In total, our securities portfolio including FHLBNY stock represented 41.2% of total interest-earning assets as of December 31, 2023.
Approximately 50.7% of this portfolio is classified as “available for sale.” In total, our securities portfolio including FHLBNY stock represented 40.5% of total interest-earning assets as of December 31, 2024.
Our vision is to provide banking that furthers economic, social, racial, and environmental justice. Our differentiated model of providing relationship-based, personalized-service and customized solutions while sharing our customers’ values has driven the growth of our commercial banking, trust and investment management, and increasingly our consumer banking businesses.
Our differentiated model of providing relationship-based, personalized-service and customized solutions while sharing our customers’ values has driven the growth of our commercial banking, trust and investment management, and contributes to our consumer banking businesses.

… 117 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

87 edited+30 added−26 removed162 unchanged
Biggest changeIn addition, negotiating collective bargaining agreements could divert management attention, which could also adversely affect operating results.On December 20, 2023, we and OPEIU entered into a Memorandum of Agreement ("MOA"), which among other things (i) extended the term of the collective bargaining agreement to June 30, 2026, and (ii) provided for a 3.5% wage increase effective the 1st of July 2023, 2024 and 2025, respectively.
Biggest changeOn November 29, 2024, we entered into a new collective bargaining agreement with OPEIU, which (i) extended the term of the 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 account.
Although 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 38 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.
Although 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.
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.
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.
Because of the uncertainty of estimates involved in this matters, we may be required to significantly increase the allowance or sustain credit losses that are significantly higher than the reserve provided. Any of these could have a material adverse effect on 43 our business, financial condition or results of operations.
Because of the uncertainty of estimates involved in this matters, we may be required to significantly increase the allowance or sustain credit losses that are significantly higher than the reserve provided. Any of these could have a material adverse effect on our business, financial condition or results of operations.
If we fail to comply with any 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 performance.
We occasionally 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 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.
Treasury Department to administer the BSA, is 44 authorized to impose significant civil money penalties for violations of those requirements and has engaged in coordinated enforcement efforts with the individual federal banking regulators, as well as the U.S. Department of Justice, Drug Enforcement Administration and IRS.
Treasury Department to administer the BSA, is authorized to impose significant civil money penalties for violations of those requirements and has engaged in coordinated enforcement efforts with the individual federal banking regulators, as well as the U.S. Department of Justice, Drug Enforcement Administration and IRS.
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.
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.
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.
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.
Fiscal challenges facing the U.S. government, such as the recent downgrade of the sovereign credit ratings of the U.S. by Fitch Ratings, could have an adverse impact on value of investments in GSEs and on the financial markets, interest rates and economic conditions in the U.S. and worldwide.
Fiscal challenges facing the U.S. government, such as the downgrade of the sovereign credit ratings of the U.S. by Fitch Ratings, could have an adverse impact on value of investments in GSEs and on the financial markets, interest rates and economic conditions in the U.S. and worldwide.
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.
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.
A failure to maintain current technology and business 39 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.
Further, risk of cybersecurity incidents may increase with the political and economic instability or warfare (including the Russia and Ukraine war and campaigns by Chinese hackers to infiltrate computer networks associated with critical American infrastructure).
Further, risk of cybersecurity incidents may increase with the political and economic instability or warfare (including the Russia and Ukraine war and campaigns by Chinese hackers to infiltrate computer networks associated 36 with critical American infrastructure).
The majority of our loan portfolio is secured by real estate, 8.0% 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, 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.
Additionally, Workers United Related Parties have entered into agreements with us that provide 46 certain registration rights under existing registration rights agreements, and in the case of the Workers United Related Parties, the establishment of an advisory board.
Additionally, Workers United Related Parties have entered into agreements with us that provide certain registration rights under existing registration rights agreements, and in the case of the Workers United Related Parties, the establishment of an advisory board.
Declines in the financial markets or a lack of sustained growth may result in a decline in the performance of our investment management business 37 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 performance.
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.
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. 35 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. 33 Operational and Business Risks We are at risk of increased losses from fraud.
The potential costs, including strategic planning, litigation due to increased regulatory scrutiny or negative public sentiment, technology expenditures, and losses associated with climate change related risks 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, 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.
We could experience net interest margin compression if our rates on our interest earning assets fail to increase in tandem with rates on our interest-bearing liabilities.
We could experience net interest margin compression if our rates on our interest earning assets fail to increase in tandem with rates on our interest-bearing liabilities. We could experience net interest margin compression if our rates on our interest bearing liabilities fail to decrease in tandem with rates on our interest earning assets.
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. 36 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. 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.
Further, if we fail to adopt or develop new technologies or to adapt our products and services to emerging industry standards, then we may lose current and future customers, which could have a material adverse effect on our business, financial condition and results of operations.
Conversely, if we fail to adopt or develop new technologies or to adapt our products and services to emerging industry standards, then we may lose current and future customers, which could have a material adverse effect on our business, financial condition and results of operations.
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 42% 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 37% of our common stock.
If we choose to raise capital by selling shares of our common stock for any reason, the issuance would have a dilutive effect on the holders of our common stock and could have a material negative effect on the value of our common stock. 47 Item 1B. Unresolved Staff Comments. None.
If we choose to raise capital by selling shares of our common stock for any reason, the issuance would have a dilutive effect on the holders of our common stock and could have a material negative effect on the value of our common stock. 45 Item 1B. Unresolved Staff Comments. None.
The FDIC, the NYDFS, the Department of Justice, and other federal and state agencies are responsible for enforcing these laws and regulations. In October 2023, the FDIC, the FRB and the OCC jointly adopted final regulations for modernizing and implementing the CRA, which will become effective on April 1, 2024, with a multi-year phase-in.
The FDIC, the NYDFS, the Department of Justice, and other federal and state agencies are responsible for enforcing these laws and regulations. In October 2023, the FDIC, the FRB and the OCC jointly adopted final regulations for modernizing and implementing the CRA, which became effective on April 1, 2024, with a multi-year phase-in.
Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, business activity or investor or business confidence, limitations on the availability of or increases in the cost of credit and capital, increases in inflation or interest rates, high unemployment, natural disasters, epidemics and pandemics (such as COVID-19), state or local government insolvency, or a combination of these or other factors.
Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, business activity or investor or business confidence, limitations on the availability of or increases in the cost of credit and capital, increases in inflation or interest rates, high unemployment, natural disasters, epidemics and pandemics, state or local government insolvency, or a combination of these or other factors.
Specifically, if our competitors introduce new banking products and services embodying new technologies such as artificial intelligence and machine learning, or if new banking industry standards and practices emerge, then our existing product and service offerings, technology and systems may be impaired or become obsolete.
Specifically, if our competitors introduce new banking products and services embodying new technologies such as AI and machine learning, or if new banking industry standards and practices emerge, then our existing product and service offerings, technology and systems may be impaired or become obsolete.
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, 2023, we had 425 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, 2024, we had 429 employees, of which approximately 21% are represented by collective bargaining agreements or an employee union.
Because payments on 34 loans secured by commercial real estate often depend upon the successful operation and management of the properties and the businesses which operate from within them, repayment of such loans may be affected by factors outside the borrower’s control, such as adverse conditions in the real estate market or the economy or changes in government regulations.
Because payments on loans secured by commercial real estate often depend upon the successful operation and management of the properties and the businesses which operate from within them, repayment of such loans may be affected by factors outside the borrower’s control, such as adverse conditions in the real estate market or the economy, including interest rate fluctuations, or changes in government regulations.
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, 2023, the fair value of our investment securities portfolio was approximately $3.03 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, 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.
Our multi-employer pension plan expense totaled $7.2 million in 2023. Our obligations may be impacted by the funding status of the plan, the plan’s investment performance, changes in the participant demographics, financial stability of contributing employers and changes in actuarial assumptions.
Our multi-employer pension plan expense totaled $7.6 million in 2024. Our obligations may be impacted by the funding status of the plan, the plan’s investment performance, changes in the participant demographics, financial stability of contributing employers and changes in actuarial assumptions.
As a result of Russia’s invasion of Ukraine, the U.S. has imposed, and is likely to impose material additional, financial and economic sanctions and export controls against certain Russian organizations and/or individuals, with similar actions either implemented or planned by the European Union (“EU”) and the U.K. and other jurisdictions.
As a result of Russia’s invasion of Ukraine, the U.S. has imposed material financial and economic sanctions and export controls against certain Russian organizations and/or individuals, with similar actions either implemented or planned by the European Union (“EU”) and the U.K. and other jurisdictions.
Risks Related to Privacy and Technology A failure in, or breach of, our operational or security systems or infrastructure, or those of our third-party vendors and other service providers, including as a result of cyber-attacks, could disrupt our businesses, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, increase our costs and cause losses.
A breach of our operational or security systems or infrastructure, or those of our third-party vendors and other service providers, including as a result of cyber-attacks, could disrupt our businesses, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, increase our costs and cause losses.
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.
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 vast majority of our operations and clients are located in New York City, Washington, D.C., and San Francisco. In addition, at December 31, 2023, 88.7% 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, 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.
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 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.
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, 2023, our ACL totaled $65.7 million, which represents approximately 1.49% of our total loans, net.
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.
In addition, these requirements could have a negative impact on our ability to lend, grow deposit balances, make acquisitions or make capital distributions in the form of dividends or share repurchases.
In addition, these requirements could have a negative impact on our ability to lend, grow deposit balances, make acquisitions or make capital distributions in the form of dividends or share repurchases. Higher capital levels could also lower our return on equity.
Although we have been able to replace maturing or withdrawn deposits and advances historically as necessary, we might not be able to replace such funds in the future, especially if a large number of our depositors or those depositors with a high concentration of deposits sought to withdraw their accounts.
While historically we have been able to replace deposit outflows and borrowings as necessary, we might not be able to replace such funds in the future, especially if a large number of our depositors or those depositors with a high concentration of deposits sought to withdraw their accounts.
They require management to make difficult, subjective or complex judgments about matters that are uncertain. Materially different amounts could be reported under different conditions or using different assumptions or estimates. The critical accounting policies include the ACL.
They require management to make difficult, subjective or complex judgments about matters that are uncertain. Materially different amounts could be reported under different conditions or using different assumptions or estimates.
Similarly, if short-term interest rates increase and long-term interest rates do not increase, or increase but at a slower rate, we could experience net interest margin compression as our rates on interest earning assets decline measured relative to rates on our interest-bearing liabilities.
"Management's Discussion and Analysis of Financial Condition and Results of Operations." Similarly, if short-term interest rates increase and long-term interest rates do not increase, or increase but at a slower rate, we could experience net interest margin compression as our rates on interest earning assets decline measured relative to rates on our interest-bearing liabilities.
Our access to deposits may also be affected by the liquidity needs of our depositors, particularly in an inflationary environment where they may be compelled to withdraw deposits in order to cover rising expenses. As a part of our liquidity management, we must ensure we can respond effectively to potential volatility in our customers’ deposit balances.
Our access to deposits may also be affected by the liquidity needs of our depositors, particularly in an adverse interest rate or economic environment where they may be compelled to withdraw deposits. As a part of our liquidity management, we must ensure we can respond effectively to potential volatility in our customers’ deposit balances.
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. 33 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.
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.
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, 2023, we had a portfolio of $258.0 million in commercial PACE assessments and $871.9 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, 2024, we had a portfolio of $268.4 million in commercial PACE assessments and $927.5 million in residential PACE assessments.
At December 31, 2023, our total multifamily loan exposure in New York State is approximately $775.1 million, of which approximately $571.4 million, or 74%, represents our portfolio’s composition of rent stabilized and rent controlled apartments in the New York multifamily market. Our solar loans expose us to higher credit risk.
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.
The term “Certified B Corporation” does not refer to a particular form of legal entity, but instead refers to companies certified by the B Lab, an independent nonprofit organization, as meeting rigorous standards of social and environmental performance, accountability and transparency. B Labs sets the standards for Certified B Corporation TM certification and may change those standards over time.
The term “Certified B Corporation” does not refer to a particular form of legal entity, but instead refers to companies certified by the B Lab, an independent nonprofit organization, as meeting rigorous standards of social and environmental performance, accountability and transparency.
There has been a significant rise in climate-related probes and litigation, including greenwashing claims, against banks. “Greenwashing” involves a business making misleading sustainability-related claims to investors or consumers, usually to boost its reputation and bottom line. Furthermore, ESG products in the banking and financial services sectors have become subject to heightened regulatory scrutiny for potentially misleading claims and poor controls.
"Greenwashing" involves a business making misleading sustainability-related claims to investors or consumers, usually to boost its reputation and bottom line. Furthermore, ESG products in the banking and financial services sectors have become subject to heightened regulatory scrutiny for potentially misleading claims and poor controls.
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.
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.
Defense of our reputation and our trademarks, including through litigation, could result in costs adversely affecting our business, results of operations or financial condition.
Defense of our reputation and our trademarks, including through litigation, could result in costs adversely affecting our business, results of operations or financial condition. We are a Certified B Corporation TM .
In October 2023, the CFPB issued a Notice of Proposed Rulemaking for the Required Rulemaking on Personal Financial Data Rights rule to promote “open and decentralized banking” by requiring covered institutions to allow customers to authorize the transfer of certain customer information to other financial institutions.
In October 2024, the CFPB finalized the Required rule making on Personal Financial Data Rights rule to promote “open and decentralized banking” by requiring covered institutions to allow customers to authorize the transfer of certain customer information to other financial institutions.
Many aspects of the banking business involve a substantial risk of legal liability. From time to time, we are, or may become, the subject of information-gathering requests, reviews, investigations and proceedings, and other forms of regulatory inquiry, including by bank regulatory agencies, self-regulatory agencies, and law enforcement authorities.
From time to time, we are, or may become, the subject of information-gathering requests, reviews, investigations and proceedings, and other forms of regulatory inquiry, including by bank regulatory agencies, self-regulatory agencies, and law enforcement authorities.
From time to time, we are subject to unfair labor practice charges, complaints and other legal, administrative and arbitration proceedings initiated against us by unions, the National Labor Relations Board or our employees, which could negatively impact our operating results.
From time to time, we are subject to unfair labor practice charges, complaints and other legal, administrative and arbitration proceedings initiated against us by unions, the National Labor Relations Board or our employees, which could negatively impact our operating results. In addition, negotiating collective bargaining agreements could divert management attention, which could also adversely affect operating results.
The Company is a bank holding company that conducts substantially all of its operations through the Bank. As a result, our ability to make dividend payments on our common stock depends primarily on certain federal regulatory considerations and the receipt of dividends and other distributions from the Bank.
As a result, our ability to make dividend payments on our common stock depends primarily on certain federal regulatory considerations and the receipt of dividends and other distributions from the Bank.
We could encounter difficulty meeting a significant deposit outflow which could negatively impact our profitability or reputation. Any long-term decline in deposit funding would adversely affect our liquidity. While we believe our funding sources are adequate to meet any significant unanticipated deposit withdrawal, we may not be able to manage the risk of deposit volatility 40 effectively.
We could encounter difficulty meeting a significant deposit outflow which could negatively impact our profitability or reputation. Any long-term decline in deposit funding would adversely affect our liquidity, but we believe our funding sources are adequate to meet any significant unanticipated deposit withdrawal.
Any failure, or perceived failure, in our ability to maintain environmental, social and corporate governance best 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 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.
While the proposed rules are not currently expected to impact us, and we expect to meet the requirements of the Basel III rules, a failure to meet minimum capital requirements could result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have an adverse material effect on our financial condition and results of operations.
A failure to meet minimum capital requirements could result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have an adverse material effect on our financial condition and results of operations.
Economic pressure on consumers, including due to factors such as inflation and the end of student loan repayment moratoriums, 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 tariffs on imports, as well as overall economic uncertainty may result in changes in consumer and business spending, borrowing and saving habits.
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.
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.
Additionally, our on-balance sheet and off-balance sheet deposits from labor unions totaled $1.71 billion, or 23% of total on-balance sheet and off-balance sheet deposits as of December 31, 2023.
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 and off-balance sheet deposits totaled $7.32 billion as of December 31, 2023.
Our total on-balance sheet deposits totaled $7.18 billion as of December 31, 2024.
These negative events may cause us to incur losses and may adversely affect our capital, liquidity and financial condition. Fiscal challenges facing the U.S. government could negatively impact the value of investments in GSEs and the financial markets, which in turn could have an adverse effect on our financial position or results of operations.
Fiscal challenges facing the U.S. government could negatively impact the value of investments in GSEs and the financial markets, which in turn could have an adverse effect on our financial position or results of operations.
U.S. and China disputes over trade, Taiwanese independence and China’s expanding military presence may result in additional tariffs, sanctions and trade restrictions.
Disputes over trade, flows of undocumented immigrants, fentanyl, Taiwanese independence and China’s expanding military presence may result in additional tariffs, sanctions and trade restrictions.
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 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.
Our access to funding sources in amounts adequate to finance our activities or on terms that are acceptable to us could be impaired by factors that affect us specifically or the financial services industry or economy generally.
Our access to funding, in adequate amounts and acceptable terms, could be impaired by a wide range of factors that affect us specifically, the financial services industry or the general economy.
Our ability to complete acquisitions is in many instances subject to regulatory approval, and we cannot be certain when or if, or on what terms and conditions, any required regulatory approvals would be granted.
The Company has expanded its business through a past acquisition and may do so again in the future. Our ability to complete acquisitions is in many instances subject to regulatory approval, and we cannot be certain when or if, or on what terms and conditions, any required regulatory approvals would be granted.
For instance, our on-balance sheet and off-balance sheet deposits from political campaigns, PACs, and state and national party committee clients totaled $1.19 billion, or 16% of total on-balance sheet and off-balance sheet deposits as of December 31, 2023 and may increase or decrease their deposit balances significantly as we approach an election campaign, resulting in short-term volatility in their deposit balances held with us through election cycles.
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.
Our growth requires that we increase our loans, assets under management and deposits while managing risks by following prudent loan underwriting standards without increasing interest rate risk, increasing our noninterest expenses or compressing our net interest margin, maintaining more than adequate capital at all times, hiring and retaining qualified employees and successfully implementing strategic initiatives.
Our growth requires that we increase our loans, assets under management and deposits while managing risks by following prudent loan underwriting standards without increasing interest rate risk or compressing our net interest margin.
We face strong competition from other banks and financial institutions and other wealth and investment management firms that could hurt our business. 42 The banking business is highly competitive, and we experience competition in our markets from many other financial institutions.
The banking business is highly competitive, and we experience competition in our markets from many other financial institutions.
As a result of uncertain domestic political conditions, including 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. 32 A debt default or further downgrades to the U.S. government’s sovereign credit rating or its perceived creditworthiness could also adversely affect the ability of the U.S. government to support the financial stability of Fannie Mae, Freddie Mac and the FHLBNY, with which we do business and in whose securities we invest.
A debt default or further downgrades to the U.S. government’s sovereign credit rating or its perceived creditworthiness could also adversely affect the ability of the U.S. government to support the financial stability of Fannie Mae, Freddie Mac and the FHLBNY, with which we do business and in whose securities we invest.
In particular, the capital requirements applicable to us under the Basel III rules, which became fully phased-in on January 1, 2019 required us to satisfy additional, more stringent, capital adequacy standards. The Basel III endgame rules, which were proposed in July 2023, would impose higher capital requirements on U.S. banks with at least $100 billion of assets.
In particular, the capital requirements applicable to us under the Basel III rules, which became fully phased-in on January 1, 2019 required us to satisfy additional, more stringent, capital adequacy standards.
Our business needs and future growth may require us to raise capital, but that capital may not be available or may be dilutive. Our ability to raise capital will depend on, among other things, conditions in the capital markets, which are outside of our control, and our financial performance.
Our ability to raise capital will depend on, among other things, conditions in the capital markets, which are outside of our control, and our financial performance. Accordingly, we cannot provide assurance that such capital will be available on terms acceptable to us or at all.
Our ability to maintain our reputation is critical to the success of our business, including our ability to attract and retain customers, and failure to do so may materially adversely affect our performance. We are a Certified B Corporation TM .
Our ability to maintain our reputation is critical to the success of our business, including our ability to attract and retain customers, and failure to do so may materially adversely affect our performance. As a fund manager, we from time-to-time engage in stockholder activism, pressing issuers on a range of corporate governance topics.
In addition, we may not be able to obtain appropriate types or levels of insurance in the future, nor may we be able to obtain adequate replacement policies with acceptable terms, if at all. 45 From time to time we are, or may become, involved in suits, legal proceedings, information-gatherings, investigations and proceedings by governmental and self-regulatory agencies that may lead to adverse consequences.
In addition, we may not be able to obtain appropriate types or levels of insurance in the future, nor may we be able to obtain adequate replacement policies with acceptable terms, if at all.
If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile. 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.
We cannot predict if investors will find our common stock less attractive as a result of these market stresses. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.
Climate change and material environmental sustainability 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. We are subject to the growing risk of climate change.
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.
Our operations rely on the secure processing, storage and transmission of confidential and other sensitive business and consumer information on our computer systems and networks and third-party providers. Under various federal and state laws, we are responsible for safeguarding such information.
Our computer systems, data management and internal processes, as well as those of third parties, are integral to our performance. Our operations rely on the secure processing, storage and transmission of confidential and other sensitive business and consumer information on our computer systems and networks and third-party providers.
Accordingly, we cannot provide assurance that such capital will be available on terms acceptable to us or at all. Any occurrence that limits our access to capital, may adversely affect our capital costs and our ability to raise capital and, in turn, our liquidity.
Any occurrence that limits our access to capital, may adversely affect our capital costs and our ability to raise capital and, in turn, our liquidity.
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.
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.
Once finalized, this rule could enable greater competition among banks and nonbanks for consumer market share, which could have a material adverse effect on our business, financial condition or results of operations.
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.
There is an increasing concern over climate-related risks and material environmental sustainability on the impacts of business operations, asset quality, and earnings. The risks related to the physical impacts of climate change 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.
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.
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.
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.

… 63 more changes not shown on this page.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

7 edited+3 added−3 removed23 unchanged
Biggest changeThe Company’s cybersecurity policies, standards, processes and practices are fully integrated into the Company’s ERM program and are based on recognized frameworks established by the National Institute of Standards and Technology, the Federal Financial Institutions Examination Council (the “FFIEC”), the International Organization for Standardization and other applicable industry standards and regulations, including regulations promulgated by the NYDFS.
Biggest changeThe Company’s cybersecurity policies, standards, processes and practices are fully integrated into the Company’s ERM program and are based on recognized frameworks established by the Federal Financial Institutions Examination Council (the “FFIEC”), and other applicable industry standards and regulations, including regulations promulgated by the NYDFS.
Third-Party Risk Management The Company’s Vendor Management Program provides a risk-based approach to the assessment, measurement, monitoring, and control of risks related to third parties with whom the Company does business, including vendors, service providers and other external users of Company’s systems, as well as the systems of third parties that could adversely impact our business in the event of a cybersecurity incident affecting those third-party systems.
Third-Party Risk Management The Company’s Third-Party Risk Management Program provides a risk-based approach to the assessment, measurement, monitoring, and control of risks related to third parties with whom the Company does business, including vendors, service providers and other external users of Company’s systems, as well as the systems of third parties that could adversely impact our business in the event of a cybersecurity incident affecting those third-party systems.
This includes escalation and reporting of cybersecurity incidents through the Chief Risk Officer’s organization to an Executive Response Team and the Board, and periodic reporting on the Information Security Program to the Information Cyber Security Subcommittee of the Enterprise Risk Management Committee, an executive committee that oversees the Information Security Program, and the Enterprise Risk Oversight Committee (the “EROC”), the Board committee that oversees the ERM framework.
This includes escalation and reporting of cybersecurity incidents through the Chief Risk Officer’s organization to an Executive Response Team and the Board, and periodic reporting on the Information Security Program to the Information Security Subcommittee of the Enterprise Risk Management Committee, an executive committee that oversees the Information Security Program, and the Enterprise Risk Oversight Committee (the “EROC”), the Board committee that oversees the ERM framework.
If the severity is assessed as Low or Medium in accordance with criteria identified in the incident response and recovery plans, the Response Coordinator will report the incident to the CISO and complete the remediation actions for the cybersecurity incident and 49 report the final outcome to the CISO.
If the severity is assessed as Low or Medium in accordance with criteria identified in the incident response and recovery plans, the Response Coordinator will report the incident to the CISO and complete the remediation actions for the cybersecurity incident and report the final outcome to the CISO.
These efforts include a wide range of activities, including audits, assessments, tabletop exercises, threat modeling, vulnerability testing, stress testing based on top cyberattack scenarios and other exercises focused on evaluating the effectiveness of our cybersecurity measures and planning and by leveraging the Federal Reserve Bank of New York methodology for cyber risk (“FFIEC CyberSecurity Assessment Tool”).
These efforts include a wide range of activities, including audits, assessments, tabletop exercises, vulnerability testing, stress testing based on top cyberattack scenarios and other exercises focused on evaluating the effectiveness of our cybersecurity measures and planning and by leveraging the Federal Reserve Bank of New York methodology for cyber risk (“FFIEC CyberSecurity Assessment Tool”).
The ERT will determine the appropriate steps necessary to respond to the cybersecurity incident and oversee the MRT’s execution of the response. The ERT will determine whether the cybersecurity incident needs to be escalated to the Board.
The ERT will determine the 47 appropriate steps necessary to respond to the cybersecurity incident and oversee the MRT’s execution of the response. The ERT will determine whether the cybersecurity incident needs to be escalated to the Board.
Incident Response and Recovery Planning The Company has established and maintains comprehensive incident response and recovery plans that fully address the Company’s timely and effective response to a cybersecurity incident, and such plans are tested and evaluated on a regular basis. Multidisciplinary teams throughout the Company are deployed to address cybersecurity threats and to respond to cybersecurity incidents.
Incident Response and Recovery Planning The Company has established and maintains comprehensive incident response and recovery plans that fully address the Company’s timely and effective response to a cybersecurity incident, and such plans are tested and evaluated on an annual basis. Multidisciplinary teams throughout the Company are deployed to address cybersecurity threats and to respond to cybersecurity incidents.
Removed
In the absence of a permanent CISO at December 31, 2023, the Company contracted an interim CISO who previously had served as the Company's interim CTO from July of 2022 through October of 2023.
Added
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.
Removed
Additionally this contractor served in various roles in information technology and information security for over 25 years, including serving as the Chief Information Officer and Chief 48 Technology Officer of two large public financial services 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.
Added
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.
Removed
The current CTO holds an undergraduate degree in computer science and a master’s degree in business administration. and has served in various roles in information technology for over 30 years, including serving as either the Chief Technology Officer or Chief Information Officer of four public companies.
Added
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

1 edited+0 added−0 removed1 unchanged
Biggest changeItem 2. Properties. As of December 31, 2023, 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 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, 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.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed1 unchanged
Biggest changeBased upon management’s current knowledge, following consultation with legal counsel, in the opinion of management, there is no pending or threatened legal matter that would result in a material adverse effect on our consolidated financial condition or results of operation, either individually or in the aggregate. Item 4. Mine Safety Disclosures. Not applicable. 50 PART II
Biggest changeBased upon management’s current knowledge, following consultation with legal counsel, in the opinion of management, there is no pending or threatened legal matter that would result in a material adverse effect on our consolidated financial condition or results of operation, either individually or in the aggregate. Item 4. Mine Safety Disclosures. Not applicable. 48 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

8 edited+1 added−1 removed13 unchanged
Biggest changeIssuer Purchases of Equity Securities Period 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, 2023 60,376 $ 16.56 60,376 $ 19,867,732 November 1 through November 30, 2023 30,688 19.47 4,800 $ 19,781,192 December 1 through December 31, 2023 5,283 26.82 — $ 19,781,192 Total 96,347 $ 18.68 65,176 (1) Includes shares purchased as part of our publicly announced share repurchase program and withheld by the Company to pay the costs associated with tax withholding related to the exercise of stock options and RSU and PSU vesting.
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).
Dividend Policy We have historically paid a quarterly cash dividend, and intend to continue paying a quarterly cash dividend of $0.10 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 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.
The graph assumes that an investor originally invested $100 in shares of the Bank's common stock at its closing price on December 31, 2018, 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, 2019, and assumes reinvestment of dividends and other distributions to stockholders.
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. ” 51 Stock Performance Graph The following stock performance graph compares the cumulative total shareholder returns for the Company's common stock, KBW Bank 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, KBW Bank Index, Nasdaq Composite Index and the KBW Regional Bank Index for the last five fiscal years.
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, 2023, we had 30,428,359 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, 2024, we had 30,670,982 shares of common stock outstanding and approximately 200 stockholders of record.
Cumulative Total Returns Period Ending 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 Amalgamated $ 100.00 $ 99.74 $ 70.46 $ 86.00 $ 118.15 $ 90.72 $ 82.51 $ 88.31 $ 138.15 KBW Bank Index 100.00 132.14 114.13 154.12 117.55 95.63 93.50 91.26 111.92 KBW Regional Bank Index 100.00 120.38 105.82 140.94 127.62 103.91 96.95 98.33 122.51 52 Repurchases of Equity Securities The following table contains information regarding purchases of our common stock during the three months ended December 31, 2023 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 12/31/19 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.
The approximate dollar value that may yet to be purchased under the plans or programs is $19.8 million. 53 Item 6. [Reserved]
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]
There were 6,227 shares withheld by the Company during the year ended December 31, 2023. (2) Effective February 25, 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.
(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.
Removed
The authorization did not require us to acquire any specified number of shares and can be suspended or discontinued without prior notice. Under this authorization, $8.3 million of common stock were purchased during the year ended December 31, 2023.
Added
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.

Item 7. Management's Discussion & Analysis

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

108 edited+15 added−20 removed72 unchanged
Biggest changeDecember 31, 2023 December 31, 2022 December 31, 2021 (In thousands) Amount % of Portfolio Amount % of Portfolio Amount % of Portfolio Available for sale: Traditional securities: GSE certificates & CMOs $ 480,615 15.1 % $ 596,638 17.8 % $ 829,726 28.1 % Non-GSE certificates & CMOs 196,860 6.2 % 224,706 6.7 % 172,706 5.8 % ABS 627,635 19.7 % 848,427 25.3 % 972,211 32.9 % Corporate 120,741 3.8 % 138,861 4.1 % 132,153 4.5 % Other 3,888 0.1 % 3,844 0.1 % 6,614 0.2 % PACE assessments: Residential PACE assessments 53,303 1.7 % — — % — — % Total available for sale 1,483,042 46.6 % 1,812,476 54.0 % 2,113,410 71.5 % Held-to-maturity: Traditional securities: GSE certificates & CMOs 194,329 6.1 % 187,652 5.6 % 58,820 2.0 % Non-GSE certificates & CMOs 79,406 2.5 % 83,103 2.5 % 21,128 0.7 % ABS 279,916 8.8 % 288,683 8.6 % 75,800 2.6 % Municipal 66,635 2.1 % 67,986 2.0 % 57,327 1.9 % Other — — % 2,000 0.1 % 3,100 0.1 % PACE assessments: Commercial PACE assessments 258,306 8.1 % 255,424 7.6 % 175,712 5.9 % Residential PACE assessments 818,963 25.8 % 656,453 19.6 % 451,682 15.3 % Total held-to-maturity 1,697,555 53.4 % 1,541,301 46.0 % 840,469 28.5 % Total securities $ 3,180,597 100.0 % $ 3,353,777 100.0 % $ 2,956,979 100.0 % 63 The following table show contractual maturities and yields for the available-for sale and held-to-maturity securities portfolios: Contractual Maturity as of December 31, 2023 One Year or Less One to Five Years Five to Ten Years Due after Ten Years (In thousands) Amortized Cost Weighted Average Yield (1) Amortized Cost Weighted Average Yield (1) Amortized Cost Weighted Average Yield (1) Amortized Cost Weighted Average Yield (1) Available for sale: Traditional securities: GSE certificates & CMOs $ — — % $ 17,324 2.9 % $ 128,279 4.7 % $ 375,498 3.6 % Non-GSE certificates & CMOs — — % — — % 6,500 0.4 % 212,050 3.4 % ABS — — % 5,149 4.9 % 247,595 7.1 % 395,841 5.9 % Corporate 3,000 6.5 % 57,032 4.2 % 80,006 3.8 % — — % Other 200 1.3 % 3,997 6.2 % — — % — — % PACE assessments: Residential PACE assessments — — % — — % — — % 52,863 7.5 % Held-to-maturity: Traditional securities: GSE certificates & CMOs — — % 14,948 3.1 % 22,144 3.0 % 157,237 2.9 % Non-GSE certificates & CMOs — — % — — % — — % 79,406 2.7 % ABS — — % — 0.0 % 85,572 7.0 % 194,344 5.4 % Municipal — — % 9,438 3.7 % 3,545 2.2 % 53,652 2.8 % PACE assessments: Commercial PACE assessments — — % — — % — — % 258,306 5.0 % Residential PACE assessments — — % — — % — — % 818,963 5.1 % Total securities $ 3,200 6.2 % $ 107,888 3.9 % $ 573,641 5.8 % $ 2,598,160 4.7 % (1) Estimated yield based on book price (amortized cost divided by par) using estimated prepayments and no change in interest rates. 64 The following table shows a breakdown of our asset backed securities by sector and ratings at carrying value based on the fair value of available for sale securities and amortized cost of held-to-maturity securities as of December 31, 2023: Expected Avg.
Biggest changeDecember 31, 2024 December 31, 2023 December 31, 2022 (In thousands) Amount % of Portfolio Amount % of Portfolio Amount % of Portfolio Available for sale: Traditional securities: GSE certificates & CMOs $ 508,158 15.8 % $ 480,615 15.1 % $ 596,638 17.8 % Non-GSE certificates & CMOs 214,175 6.7 % 196,860 6.2 % 224,706 6.7 % ABS 652,334 20.3 % 627,635 19.7 % 848,427 25.3 % Corporate 98,315 3.1 % 120,741 3.8 % 138,861 4.1 % Other 4,065 0.1 % 3,888 0.1 % 3,844 0.1 % PACE assessments: Residential PACE assessments 152,011 4.7 % 53,303 1.7 % — — % Total available for sale 1,629,058 50.7 % 1,483,042 46.6 % 1,812,476 54.0 % Held-to-maturity: Traditional securities: GSE certificates & CMOs 188,194 5.9 % 194,329 6.1 % 187,652 5.6 % Non-GSE certificates & CMOs 73,850 2.3 % 79,406 2.5 % 83,103 2.5 % ABS 215,161 6.7 % 279,916 8.8 % 288,683 8.6 % Municipal 65,090 2.0 % 66,635 2.1 % 67,986 2.0 % Other — — % — — % 2,000 0.1 % PACE assessments: Commercial PACE assessments 268,692 8.4 % 258,306 8.1 % 255,424 7.6 % Residential PACE assessments 775,922 24.0 % 818,963 25.8 % 656,453 19.6 % Total held-to-maturity 1,586,909 49.3 % 1,697,555 53.4 % 1,541,301 46.0 % Total securities $ 3,215,967 100.0 % $ 3,180,597 100.0 % $ 3,353,777 100.0 % 62 The following table show contractual maturities and yields for the available for sale and held-to-maturity securities portfolios: Contractual Maturity as of December 31, 2024 One Year or Less One to Five Years Five to Ten Years Due after Ten Years (In thousands) Amortized Cost Weighted Average Yield (1) Amortized Cost Weighted Average Yield (1) Amortized Cost Weighted Average Yield (1) Amortized Cost Weighted Average Yield (1) Available for sale: Traditional securities: GSE certificates & CMOs $ — — % $ 11,155 2.7 % $ 54,750 4.3 % $ 471,408 4.1 % Non-GSE certificates & CMOs — — % 6,750 5.8 % — — % 222,763 3.7 % ABS — — % 25,324 6.0 % 208,792 6.0 % 431,432 5.4 % Corporate — — % 33,479 4.5 % 76,003 3.7 % — — % Other — — % 4,197 5.1 % — — % — — % PACE assessments: Residential PACE assessments 7 — % 1,585 0.1 % 4,184 0.2 % 144,408 7.2 % Held-to-maturity: Traditional securities: GSE certificates & CMOs — — % 14,655 3.1 % 22,127 3.0 % 151,412 2.9 % Non-GSE certificates & CMOs — — % — — % — — % 73,850 2.3 % ABS — — % — 0.0 % 121,723 6.1 % 93,438 3.9 % Municipal — — % 9,458 3.7 % 3,524 2.2 % 52,108 2.8 % PACE assessments: Commercial PACE assessments — — % — — % 5,663 0.1 % 263,029 5.3 % Residential PACE assessments 2,624 — % 9,779 0.1 % 34,323 0.2 % 729,196 4.9 % Total securities $ 2,631 0.0 % $ 116,382 4.5 % $ 531,089 5.4 % $ 2,633,044 4.7 % (1) Estimated yield based on book price (amortized cost divided by par) using estimated prepayments and no change in interest rates. 63 The following table shows a breakdown of our asset backed securities by sector and ratings at carrying value based on the fair value of available for sale securities and amortized cost of held-to-maturity securities as of December 31, 2024: Expected Avg.
Our corporate divisions include Commercial Banking, Trust and Investment Management and Consumer Banking. Our product line includes residential mortgage loans, C&I loans, CRE loans, multifamily mortgages, consumer loans (predominantly residential solar) and a variety of commercial and consumer deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts and certificates of deposit.
Our corporate divisions include Commercial Banking, Trust and Investment Management and Consumer Banking. Product line includes residential mortgage loans, C&I loans, CRE loans, multifamily mortgages, consumer loans (predominantly residential solar) and a variety of commercial and consumer deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts and certificates of deposit.
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.
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.
Our 73 liquidity risk management process includes (i) ongoing analysis and monitoring of our funding requirements under various balance sheet and economic scenarios, (ii) review and monitoring of lenders, depositors, brokers and other liability holders to ensure appropriate diversification of funding sources and (iii) liquidity contingency planning to address liquidity needs in the event of unforeseen market disruption impacting a wide range of variables.
Our liquidity risk management process includes (i) ongoing analysis and monitoring of our funding requirements under various balance sheet and economic scenarios, (ii) review and monitoring of lenders, depositors, brokers and other liability holders to ensure appropriate diversification of funding sources and (iii) liquidity contingency planning to address liquidity needs in the event of unforeseen market disruption impacting a wide range of variables.
If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through 62 income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors.
If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors.
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”).
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”).
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 67 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 modification of terms upon maturity.
Additionally, mortgage loans with an unpaid principal balance of $2.35 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, 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.
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, 2023 or at December 31, 2022. 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, 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.
As of December 31, 2023, 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, 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.
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, 2023 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, 2024 by maturity date.
These customers include advocacy-based non-profits, social welfare organizations, national labor unions, political 54 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 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.
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 74% 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 73% of their exposure in New York City—our largest geographic concentration.
Within the model, assumptions are made in the determination of baseline loss rates, severity rates, reasonable and supportable economic forecasts, and prepayment rate. 55 The Company assesses the sensitivity of key assumptions at least annually by stressing the assumptions to understand the impact on the model.
Within the model, assumptions are made in the determination of baseline loss rates, severity rates, reasonable and supportable economic forecasts, and prepayment rates. The Company assesses the sensitivity of key assumptions at least annually by stressing the assumptions to understand the impact on the model.
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, 2023, as compared to December 31, 2022, and our results of operations for the years ended December 31, 2023, December 31, 2022, and December 31, 2021.
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.
Approximately 70% of this portfolio is classified as “available for sale.” Loans Lending-related income is an important component of our net interest income and is a main driver of our results of operations.
Approximately 75% of this portfolio is classified as “available for sale.” Loans Lending-related income is an important component of our net interest income and is a main driver of our results of operations.
Discussions of 2021 results and year-to-year comparisons between 2022 and 2021 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, 2022, filed with the SEC on March 9, 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.
Through our branch network, online, mobile and direct banking channels, we offer a variety of deposit products including demand deposit accounts, money market deposits, NOW accounts, savings and certificates of deposit, Insured Cash Sweep ("ICS") accounts, Certificate of Deposit Account Registry Service accounts, and brokered certificates of deposit.
Through our branch network, online, mobile and direct banking channels, we offer a variety of deposit products including demand deposit accounts, money market deposits, NOW accounts, savings and certificates of deposit, ICS accounts, Certificate of Deposit Account Registry Service accounts, and brokered certificates of deposit.
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 42% of our equity as of December 31, 2023.
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.
Adjustments to the quantitative results are made using qualitative factors.
Adjustments to the quantitative 53 results are made using qualitative factors.
At December 31, 2023 and December 31, 2022, we had available for sale securities of $1.48 billion and $1.81 billion, respectively. At December 31, 2023, 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, 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.
On January 1, 2023, the adoption of the CECL standard increased the allowance for credit losses on loans by $21.2 million to recognize the Day 1 cumulative effect, primarily attributed to our consumer solar portfolio. The ratio of allowance to total loans was 1.49% at December 31, 2023 and 1.10% at December 31, 2022.
On January 1, 2023, the adoption of the CECL standard increased the allowance for credit losses on loans by $21.2 million to recognize the Day 1 cumulative effect, primarily attributed to our consumer solar portfolio. The ratio of allowance to total loans was 1.29% at December 31, 2024 and 1.49% at December 31, 2023.
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, 2023 by exposure was $4.6 million with a median size of $1.0 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 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.
Non-interest-bearing deposits represented 44% of average deposits for the year ended December 31, 2023, compared to 54% for the year ended December 31, 2022. 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 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.
Total loans, net of deferred origination fees and allowance for credit losses, were $4.35 billion as of December 31, 2023 compared to $4.06 billion as of December 31, 2022. 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 $4.61 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.
On March 1, 2021 (the “Effective Date”), the Company acquired all of the outstanding stock of the Bank and the Bank became the sole subsidiary of the Company.
On March 1, 2021, the Company acquired all of the outstanding stock of the Bank and the Bank became the sole subsidiary of the Company.
The average rate on interest-bearing liabilities was 2.29% for the year ended December 31, 2023, an increase of 174 basis points from the same period in 2022, which was primarily due to the rising rate environment, growth in interest-bearing deposits as customers moved into reciprocal products, as well as the utilization of brokered CDs and other borrowings.
The average rate on interest-bearing liabilities was 2.85% for the year ended December 31, 2024, an increase of 56 basis points from the same period in 2023, which was primarily due to the rising rate environment, growth in interest-bearing deposits as customers moved into reciprocal products, as well as the utilization of brokered CDs and other borrowings.
This discussion generally focuses on 2023 and 2022 results and year-to-year comparisons between 2023 and 2022.
This discussion generally focuses on 2024 and 2023 results and year-to-year comparisons between 2024 and 2023.
The Basel III rules apply to all national and state banks and savings associations regardless of size and bank holding companies and savings and loan holding companies with consolidated assets of more than $3 billion.
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.
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%. 66 Our multifamily loans totaled $1.15 billion at December 31, 2023, which comprised 26.1% 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 54%. Our multifamily loans totaled $1.35 billion at December 31, 2024, which comprised 28.9% of our total loan portfolio.
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, 2023 and December 31, 2022: (In thousands) December 31, 2023 December 31, 2022 Loans 90 days past due and accruing $ — $ — Nonaccrual loans held for sale 989 6,914 Nonaccrual loans - Commercial 23,189 18,308 Nonaccrual loans - Retail 9,994 3,391 Nonaccrual securities 31 36 Total nonperforming assets $ 34,203 28,649 Nonaccrual loans: Commercial and industrial $ 7,533 9,629 Multifamily — 3,828 Commercial real estate 4,490 4,851 Construction and land development 11,166 — Total commercial portfolio 23,189 18,308 Residential real estate lending 7,218 1,807 Consumer solar 2,673 1,584 Consumer and other 103 — Total retail portfolio 9,994 3,391 Total nonaccrual loans $ 33,183 21,699 Nonperforming assets to total assets 0.43 % 0.37 % Nonaccrual assets to total assets 0.43 % 0.36 % Nonaccrual loans to total loans 0.75 % 0.53 % Allowance for credit losses on loans to nonaccrual loans 197.97 % 207.53 % Allowance for credit losses on loans to total loans 1.49 % 1.10 % Ratio of net charge-offs (recoveries) to average loans outstanding during the period: Commercial and industrial 0.17 % (0.03) % Multifamily 0.22 % 0.05 % Commercial real estate 0.00 % — % Construction and land development 15.21 % 1.12 % Total commercial portfolio 0.36 % 0.03 % Residential real estate lending (0.05) % 0.05 % Consumer solar 1.39 % 1.32 % Consumer and other 0.53 % 0.39 % Total retail portfolio 0.29 % 0.33 % Total 0.33 % 0.16 % Nonperforming assets totaled $34.2 million , or 0.43% of period-end total assets at December 31, 2023 , a increase of $5.6 million, compared with $28.6 million, or 0.37% of period-end total assets at December 31, 2022.
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.
Accrued interest receivable on held-to-maturity debt securities totaled $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. The allowance for credit losses for held-to-maturity securities at January 1, 2023 was $0.7 million.
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.
At December 31, 2023, our cash and equivalents, which consist of cash and amounts due from banks and interest-bearing deposits in other financial institutions, amounted to $90.6 million, or 1.1% of total assets, compared to $63.5 million, or 0.8% of total assets at December 31, 2022.
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.
Our consumer solar portfolio is comprised of purchased residential solar loans, secured by Uniform Commercial Code (UCC) financing statements. Our consumer solar loans totaled $408.3 million at December 31, 2023, which comprised 9.3% of our total loan portfolio, compared to $416.8 million, or 10.2%, of our total loan portfolio at December 31, 2022. Consumer and other.
Our consumer solar portfolio is comprised of purchased residential solar loans, secured by Uniform Commercial Code ("UCC") financing statements. Our consumer solar loans totaled $365.5 million at December 31, 2024, which comprised 7.8% of our total loan portfolio, compared to $408.3 million, or 9.3%, of our total loan portfolio at December 31, 2023. Consumer and other.
At December 31, 2023, a $12.0 million multifamily loan that was in the process of being refinanced has been included as 30-89 days past due as it was past the maturity date. This loan was subsequently refinanced and is performing in accordance with the updated terms.
At December 31, 2024, an $8.2 million multifamily loan that was in the process of being refinanced has been included as 30-89 days past due as it was past the maturity date. This loan was subsequently refinanced and is performing in accordance with the updated terms.
Net Interest Income Net interest income, representing interest income less interest expense, is a significant contributor to our revenues and earnings. We generate interest income from interest, dividends and prepayment fees on interest-earning assets, including loans, investment securities and other short-term investments. We incur interest expense from interest paid on interest-bearing liabilities, including interest-bearing deposits, FHLBNY advances and other borrowings.
Net Interest Income Net interest income, representing interest income less interest expense, is a significant contributor to our revenues and earnings. We generate interest income from interest, dividends and prepayment fees on interest-earning assets, including loans, investment securities and other short-term investments.
Our consumer and other portfolio is comprised of purchased student loans, unsecured consumer loans and overdraft lines. Our consumer and other loans totaled $41.3 million at December 31, 2023, which comprised 0.9% of our total loan portfolio, compared to $47.2 million, or 1.1% of our total loan portfolio, at December 31, 2022.
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.
Provision for credit losses totaled an expense of $14.7 million for the year ended December 31, 2023 , compared to an expense of $15.0 million for the same period in 2022.
Provision for credit losses totaled an expense of $10.3 million for the year ended December 31, 2024 , compared to an expense of $14.7 million for the same period in 2023.
Available for sale securities with an aggregate fair value at December 31, 2023 of $909.9 million 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 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.
Potential problem loans are not included in the nonperforming assets table above and totaled $103.5 million, or 1.3% of total assets, at December 31, 2023, as follows: $76.8 million are commercial loans currently in workout that management expects will be rehabilitated; $9.1 million are residential real estate loans, with $9.1 million at 30-89 days delinquent.
Potential problem loans are not included in the nonperforming assets table above and totaled $109.4 million, or 1.3% of total assets, at December 31, 2024, as follows: $79.9 million are commercial loans currently in workout that management expects will be rehabilitated; $6.2 million are residential real estate loans at 30-89 days delinquent and $5.6 million are consumer loans at 30-89 days delinquent.
Maturities of time certificates of deposit and other time deposits of $250,000 or more outstanding at December 31, 2023 are summarized as follows: Maturities as of December 31, 2023 (In thousands) Within three months $ 22,026 After three but within six months 1,865 After six months but within twelve months 7,463 After twelve months 750 $ 32,104 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, 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.
During the year ended 2023, the multifamily loan portfolio increased by 18.7% from $967.5 million at December 31, 2022. 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 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.
Additionally, 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. 69 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, 2023 At December 31, 2022 (In thousands) Amount % of total loans Amount % of total loans Commercial Portfolio: Commercial and industrial $ 18,331 22.9 % $ 12,916 22.5 % Multifamily 2,133 26.1 % 7,104 23.6 % Commercial real estate 1,276 8.0 % 3,627 8.2 % Construction and land development 24 0.5 % 825 0.9 % Total commercial portfolio $ 21,764 57.5 % $ 24,472 55.2 % Retail Portfolio: Residential real estate lending 13,273 32.3 % 11,338 33.5 % Consumer solar 27,978 9.3 % 6,867 10.2 % Consumer and other 2,676 0.9 % 2,354 1.1 % Total retail portfolio $ 43,927 42.5 % $ 20,559 44.8 % Total allowance for credit losses $ 65,691 $ 45,031 Nonperforming Assets Nonperforming assets include all loans categorized as nonaccrual, other real estate owned and other repossessed assets.
Additionally, 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.
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: 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 residential real estate lending loans totaled $1.43 billion at December 31, 2023, which comprised 76.0% of our retail loan portfolio and 32.3% of our total loan portfolio. During the year ended December 31, 2023, our residential real estate lending loans increased by 3.9% from $1.37 billion at December 31, 2022. Consumer solar.
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.
This buffer must consist solely of common equity Tier 1 risk-based capital, but the buffer applies to all three measurements (common equity Tier 1 risk-based capital, Tier 1 capital and total capital). The capital conservation is equal to 2.5% of risk-weighted assets.
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 provision for credit losses for held-to-maturity securities was $79.0 thousand for the year December 31, 2023. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before the recovery of its amortized cost basis.
For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before the recovery of its amortized cost basis.
Net income for the year ended December 31, 2023 was $88.0 million, or $2.86 per average diluted share, compared to $81.5 million, or $2.61 per average diluted share, for the same period in 2022.
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.
Government, $2.1 million of consumer home improvement loans and $10.8 million of commercial energy efficient loans. • In 2022, we purchased $196.4 million of residential solar loans, $122.1 million of residential mortgages, $34.9 million of commercial loans that are unconditionally guaranteed by the U.S. Government, $32.2 million of consumer home improvement loans and $11.2 million of commercial energy efficient loans.
Government, and $11.8 million of commercial energy efficient loans. • In 2023, we purchased $39.2 million of residential solar loans, $13.7 million of residential mortgages, $1.7 million of commercial loans that are unconditionally guaranteed by the U.S. Government, $2.1 million of consumer home improvement loans and $10.8 million of commercial energy efficient loans.
Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. There was no allowance for credit losses for available for sale securities at January 1, 2023. Changes in the allowance for credit losses are recorded as credit loss expense (or reversal).
Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as credit loss expense (or reversal).
We had held-to-maturity securities of $1.70 billion at December 31, 2023, and $1.54 billion at December 31, 2022. With the adoption of the CECL standard as of January 1, 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 $1.59 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.
Uncertainties Regarding the Estimate Estimating the timing and amounts of future credit losses is subject to significant management judgment as these projected cash flows rely upon the estimates discussed above and factors that are reflective of current or future expected conditions. These estimates depend on the duration of current overall economic conditions, industry, borrower, or portfolio specific conditions.
Uncertainties Regarding the Estimate Estimating the timing and amounts of future credit losses is subject to significant management judgment as these projected cash flows rely upon the estimates discussed within the Allowance for Credit Losses policy and factors that are reflective of current or future expected conditions.
Our C&I loans totaled $1.01 billion at December 31, 2023, which comprised 22.9% of our total loan portfolio. During the year ended 2023, the C&I loan portfolio increased by 9.2% from $925.6 million at December 31, 2022. Multifamily .
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 .
At December 31, 2023, we had $4.4 million in advances from the FHLBNY and a remaining credit availability of $2.03 billion. In addition, we maintain additional borrowing capacity of approximately $588.0 million with the Federal Reserve’s discount window or Bank Term Funding Program ("BTFP") that is secured by certain securities from our portfolio which are not pledged for other purposes.
At December 31, 2024, we had $250.7 million in advances from the FHLBNY and a remaining credit availability of $1.78 billion. In addition, we maintain additional borrowing capacity of approximately $890.7 million with the Federal Reserve’s discount window that is secured by certain securities from our portfolio which are not pledged for other purposes.
Considering the Day 1 cumulative effect, the ratio of allowance to total loans at January 1, 2023 was 1.61%. At December 31, 2023, the allowance for credit losses on held-to-maturity securities was $0.7 million. On January 1, 2023, an allowance of $0.7 million was recorded to recognize the Day 1 cumulative effect, primarily attributed to commercial and residential PACE assessments.
Considering the Day 1 cumulative effect, the ratio of allowance to total loans at January 1, 2023 was 1.61%. At December 31, 2024, the allowance for credit losses on held-to-maturity securities was $0.7 million compared to $0.7 million at December 31, 2023.
Our residential real estate lending portfolio is 99% first mortgage loans and 1% second mortgage loans. As of December 31, 2023, approximately 80% of our residential one-to-four family mortgage loans were either originated by our loan officers since 2012 or were acquired in our acquisition of New Resource Bank, and approximately 20% were purchased or acquired.
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.
The increase in nonperforming assets at December 31, 2023 compared to December 31, 2022 was primarily driven by an increase in residential real estate loans on nonaccrual status. 71 Refer to " Allowance for Credit Losses " for discussion on the allowance for credit losses.
The decrease in nonperforming assets at December 31, 2024 compared to December 31, 2023 was primarily driven by an decrease in commercial and industrial loans on nonaccrual status. Refer to " Allowance for Credit Losses " for discussion on the allowance for credit losses.
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 $7.18 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.
Year Ended December 31, (In thousands) 2023 2022 2021 Beginning balance $ 45,031 $ 35,866 $ 41,589 Adoption of ASU No. 2016-13 21,229 — — Loan charge-offs: Commercial portfolio: Commercial and industrial 1,726 — 813 Multifamily 2,367 416 4,081 Commercial real estate — — 314 Construction and land development 4,664 389 — Retail portfolio: Residential real estate lending 65 2,448 1,081 Consumer solar 6,966 4,942 2,424 Consumer and other 270 201 275 Total loan charge-offs 16,058 8,396 8,988 Recoveries of loans previously charged-off: Commercial portfolio: Commercial and industrial 53 274 221 Multifamily 20 — — Construction and land development — 2 3 Retail portfolio: Residential real estate lending 706 1,800 3,168 Consumer solar 1,211 423 87 Consumer and other 36 60 73 Total loan recoveries 2,026 2,559 3,552 Net charge-offs 14,032 5,837 5,436 Provision for credit losses 13,463 15,002 (287) Balance at end of period $ 65,691 $ 45,031 $ 35,866 The allowance for credit losses increased $20.7 million to $65.7 million at December 31, 2023 from $45.0 million at December 31, 2022.
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.
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. 57 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, 2023 2022 2021 (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 $ 142,053 $ 5,779 4.07 % $ 258,214 $ 2,186 0.85 % $ 521,681 $ 651 0.12 % Securities (1) 3,250,788 160,298 4.93 % 3,391,056 106,417 3.14 % 2,461,661 54,615 2.22 % Resell agreements 10,233 705 6.89 % 182,304 4,237 2.32 % 138,833 1,942 1.40 % Total loans, net (2)(3) 4,259,195 191,295 4.49 % 3,615,437 145,649 4.03 % 3,180,093 123,318 3.88 % Total interest-earning assets 7,662,269 358,077 4.67 % 7,447,011 258,489 3.47 % 6,302,268 180,526 2.86 % Non-interest-earning assets: Cash and due from banks 5,140 7,126 7,853 Other assets 208,902 273,028 259,718 Total assets $ 7,876,311 $ 7,727,165 $ 6,569,839 Interest-bearing liabilities: Savings, NOW and money market deposits $ 3,344,407 $ 59,818 1.79 % $ 2,981,688 $ 10,069 0.34 % $ 2,622,584 $ 4,788 0.18 % Time deposits 167,167 3,452 2.07 % 185,692 638 0.34 % 248,507 1,035 0.42 % Brokered CDs 364,833 17,854 4.89 % 9,338 349 3.74 % — — — % Total deposits 3,876,407 81,124 2.09 % 3,176,718 11,056 0.35 % 2,871,091 5,823 0.20 % Other borrowings 350,039 15,642 4.47 % 200,726 7,593 3.78 % 12,699 400 3.15 % Total interest-bearing liabilities 4,226,446 96,766 2.29 % 3,377,444 18,649 0.55 % 2,883,789 6,222 0.22 % Non-interest-bearing liabilities: Demand and transaction deposits 3,045,013 3,746,152 3,017,621 Other liabilities 73,770 82,931 116,256 Total liabilities 7,345,229 7,206,527 6,017,666 Stockholders' equity 531,082 520,638 552,173 Total liabilities and stockholders' equity $ 7,876,311 $ 7,727,165 $ 6,569,839 Net interest income / interest rate spread $ 261,311 2.38 % $ 239,840 2.92 % $ 174,304 2.64 % Net interest-earning assets / net interest margin $ 3,435,823 3.41 % $ 4,069,567 3.22 % $ 3,418,479 2.77 % Total Cost of Deposits 1.17 % 0.16 % 0.10 % (1) Includes FHLBNY stock in the average balance, and dividend income on FHLBNY stock in interest income (2) Amounts are net of deferred origination costs.
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.
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.
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.
As of December 31, 2023, our total assets were $7.97 billion, our total loans, net of deferred fees and allowance were $4.35 billion, our total deposits were $7.01 billion, and our stockholders' equity was $585.4 million. As of December 31, 2023, our trust business held $41.66 billion in assets under custody and $14.82 billion in assets under management.
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.
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.
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.
Overall, the provision expense on loans was primarily driven by portfolio growth, and certain individual reserves, offset by improvements in macro-economic forecasts used in the CECL model and releases of reserves for lower unfunded exposures.
Overall, the provision expense on loans was primarily driven by portfolio growth, charge-offs on consumer solar loans, and certain individual reserves, offset by improvements in macro-economic forecasts used in the CECL model and releases of reserves due to lower unfunded exposures. For a further discussion of the allowance, see “ Allowance for Credit Losses ” below.
The $27.0 million, or 42.5%, increase is due to normal business activities, strategic investment securities sales, and borrowings. Our available for sale securities at December 31, 2023 were $1.48 billion, or 18.6% of total assets, compared to $1.81 billion, or 23.1% of total assets at December 31, 2022.
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.
Non-Interest Expense The following table presents non-interest expense for the periods indicated: Year Ended December 31, (In thousands) 2023 2022 2021 Compensation and employee benefits $ 85,774 $ 74,712 $ 69,844 Occupancy and depreciation 13,605 13,723 14,023 Professional fees 9,637 10,417 12,961 Data processing 17,744 17,732 16,042 Office maintenance and depreciation 2,830 3,012 3,057 Amortization of intangible assets 888 1,046 1,207 Advertising and promotion 4,181 3,741 3,230 Federal deposit insurance premiums 4,018 3,228 2,531 Other expense 12,570 12,960 9,360 Total non-interest expense $ 151,247 $ 140,571 132,255 Non-interest expense for the year ended December 31, 2023 was $151.2 million , an increase of $10.7 million from $140.6 million for the year ended December 31, 2022.
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.
The $6.5 million increase was primarily due to net interest income which increased by $21.5 million, and an increase of non-interest income of $5.4 million, offset by an increase in non-interest expense of $10.6 million, an increase in income tax expense of $10.1 million.
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.
With the adoption of the CECL standard, the allowance for credit losses for the year ended December 31, 2023 is calculated under the expected credit losses model. For the years ended December 31, 2022 and 2021, the allowance on loans presented is the allowance for loan losses using the incurred loss model.
With the adoption of the CECL standard, the allowance for credit losses for the year ended December 31, 2024 and December 31, 2023 is calculated under the expected credit losses model.
Notable changes within individual balance sheet line items include a $417.0 million increase in total deposits, a $284.7 million increase in loans receivable, net, $27.0 million increase in cash and equivalents and a $24.2 million increase in resell agreements, offset by $173.9 million decrease in investment securities and a $345.6 million decrease in FHLB advances and other borrowings.
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.
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.
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.
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. 56 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.
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.
The following table presents our non-interest income for the periods indicated: 60 Year Ended December 31, (In thousands) 2023 2022 2021 Trust Department fees $ 15,175 $ 14,449 $ 13,352 Service charges on deposit accounts 10,999 10,999 9,355 Bank-owned life insurance income 2,882 3,868 2,388 Gain (loss) on sale of securities (7,392) (3,637) 649 Gain (loss) on sale of loans 32 (610) 1,887 Loss on other real estate owned — (168) (407) Equity method investments income (loss) 4,932 (2,773) 150 Other income 2,708 1,769 1,015 Total non-interest income $ 29,336 $ 23,897 $ 28,389 Non-interest income was $29.3 million for the year ended December 31, 2023, compared to $23.9 million for the same period in 2022, an increase of $5.4 million.
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.
Life in Years Credit Ratings Highest Rating if split rated (In thousands) Amount % % Floating % AAA % AA % A % BBB % Not Rated Total CLO Commercial & Industrial $ 531,375 58 % 2.7 100 % 98 % 2 % 0 % 0 % 0 % 100 % Consumer 160,276 18 % 6.0 0 % 14 % 20 % 66 % 0 % 0 % 100 % Mortgage 146,939 16 % 2.6 0 % 100 % 0 % 0 % 0 % 0 % 100 % Student 68,961 8 % 4.3 30 % 79 % 21 % 0 % 0 % 0 % 100 % Total Securities: $ 907,551 100 % 3.4 61 % 82 % 6 % 12 % 0 % 0 % 100 % Our securities portfolio primarily consists of high quality investments in mortgage-backed securities to government sponsored entities and other asset-backed securities and PACE assessments.
Life in Years Credit Ratings Highest Rating if split rated (In thousands) Amount % % Floating % AAA % AA % A % BBB % Not Rated Total CLO Commercial & Industrial $ 523,630 61 % 3.1 100 % 98 % 2 % 0 % 0 % 0 % 100 % Consumer 186,212 21 % 5.0 0 % 33 % 38 % 29 % 0 % 0 % 100 % Mortgage 85,199 10 % 1.7 100 % 100 % 0 % 0 % 0 % 0 % 100 % Student 72,454 8 % 4.1 76 % 73 % 27 % 0 % 0 % 0 % 100 % Total Securities: $ 867,495 100 % 3.4 77 % 82 % 12 % 6 % 0 % 0 % 100 % Our securities portfolio primarily consists of high quality investments in mortgage-backed securities to government sponsored entities and other asset-backed securities and PACE assessments.
We also monitor our liquidity requirements in light of interest rate trends, changes in the economy, and the scheduled maturity and interest rate sensitivity of our securities and loan portfolios and deposits. Liquidity management is made more complicated because different balance sheet components are subject to varying degrees of management control.
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.
The following table shows the regulatory capital ratios for the Company and the Bank at the dates indicated: 75 Actual For Capital Adequacy Purposes (1) To Be Considered Well Capitalized Amount Ratio Amount Ratio Amount Ratio (In thousands) 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 % December 31, 2022 Consolidated: Total capital to risk weighted assets $ 721,324 14.87 % $ 387,957 8.00 % N/A N/A Tier 1 capital to risk weighted assets 597,022 12.31 % 290,967 6.00 % N/A N/A Tier 1 capital to average assets 597,022 7.52 % 317,738 4.00 % N/A N/A Common equity tier 1 to risk weighted assets 597,022 12.31 % 218,226 4.50 % N/A N/A Bank: Total capital to risk weighted assets $ 715,458 14.75 % $ 388,107 8.00 % $ 485,134 10.00 % Tier 1 capital to risk weighted assets 668,864 13.79 % 291,080 6.00 % 388,107 8.00 % Tier 1 capital to average assets 668,864 8.44 % 317,111 4.00 % 396,389 5.00 % Common equity tier 1 to risk weighted assets 668,864 13.79 % 218,310 4.50 % 315,337 6.50 % (1) Amounts are shown exclusive of the capital conservation buffer of 2.50%.
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%.
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. (3) Includes prepayment penalty income in 2023, 2022, and 2021 of $0.1 million, $1.7 million, and $1.7 million, respectively.
(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.
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.
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.
Our CRE loans totaled $353.4 million at December 31, 2023, which comprised 8.0% of our total loan portfolio. During the year ended December 31, 2023, the CRE loan portfolio increased by 5.5% from $335.1 million at December 31, 2022.
During the year ended December 31, 2024, the CRE loan portfolio increased by 16.4% from $353.4 million at December 31, 2023. 65 Retail loan portfolio Our retail loan portfolio comprised 36.7% of our total loan portfolio at December 31, 2024 and 42.5% of our loan portfolio at December 31, 2023.
Our management concluded that it was more-likely-than-not that the entire amount will be realized. We will evaluate the recoverability of our net deferred tax asset on a periodic basis and record decreases (increases) as a deferred tax provision (benefit) in the Consolidated Statements of Income as appropriate. Deposits Deposits represent our primary source of funds.
We will evaluate the recoverability of our net deferred tax asset on a periodic basis and record decreases (increases) as a deferred tax provision (benefit) in the Consolidated Statements of Income as appropriate. Deposits Deposits represent our primary source of funds. We are focused on growing our core deposits through relationship-based banking with our business and consumer clients.
The net changes attributable to the combined impact of both rate and volume have been allocated proportionately to the changes due to volume and the changes due to rate: Year Ended December 31, 2023 over December 31, 2022 (In thousands) Volume Changes Due To Rate Net Change Interest-earning assets: Interest-bearing deposits in banks $ (2,823) $ 6,416 $ 3,593 Securities (6,638) 60,519 53,881 Resell Agreements (4,298) 766 (3,532) Total loans, net 27,206 18,440 45,646 Total interest income 13,447 86,141 99,588 Interest-bearing liabilities: Savings, NOW and money market deposits 5,874 43,875 49,749 Time deposits (347) 3,161 2,814 Brokered CDs 17,505 — 17,505 Total deposits 23,032 47,036 70,068 FHLBNY advances (275) 892 617 Other borrowings 5,517 1,915 7,432 Total borrowings 5,242 2,807 8,049 Total interest expense 28,274 49,843 78,117 Change in net interest income $ (14,827) $ 36,298 $ 21,471 59 Year Ended December 31, 2022 over December 31, 2021 (In thousands) Volume Changes Due To Rate Net Change Interest-earning assets: Interest-bearing deposits in banks $ (1,213) $ 2,748 $ 1,535 Securities 25,037 26,765 51,802 Resell Agreements 862 1,433 2,295 Total loans, net 17,058 5,273 22,331 Total interest income 41,744 36,219 77,963 Interest-bearing liabilities: Savings, NOW and money market deposits 1,076 4,205 5,281 Time deposits (243) 195 (48) Total deposits 833 4,400 5,233 FHLBNY advances 2,368 2,370 4,738 Other borrowings 2,340 116 2,456 Total borrowings 4,708 2,486 7,194 Total interest expense 5,541 6,886 12,427 Change in net interest income $ 36,203 $ 29,333 $ 65,536 Provision for Credit Losses We establish an allowance for credit losses through a provision for credit losses charged as an expense in our Consolidated Statements of Income.
The net changes attributable to the combined impact of both rate and volume have been allocated proportionately to the changes due to volume and the changes due to rate: Year Ended December 31, 2024 over December 31, 2023 (In thousands) Volume Changes Due To Rate Net Change Interest-earning assets: Interest-bearing deposits in banks $ 1,553 $ 1,337 $ 2,890 Securities 2,285 8,725 11,010 Resell agreements 5,441 (207) 5,234 Total loans, net 10,225 13,860 24,085 Total interest income 19,504 23,715 43,219 Interest-bearing liabilities: Savings, NOW and money market deposits 8,824 30,720 39,544 Time deposits 1,369 2,885 4,254 Brokered CDs (11,915) 454 (11,461) Total deposits (1,722) 34,059 32,337 Borrowings (9,261) (976) (10,237) Total interest expense (10,983) 33,083 22,100 Change in net interest income $ 30,487 $ (9,368) $ 21,119 57 Year Ended December 31, 2023 over December 31, 2022 (In thousands) Volume Changes Due To Rate Net Change Interest-earning assets: Interest-bearing deposits in banks $ (2,823) $ 6,416 $ 3,593 Securities (6,638) 60,519 53,881 Resell agreements (4,298) 766 (3,532) Total loans, net 27,206 18,440 45,646 Total interest income 13,447 86,141 99,588 Interest-bearing liabilities: Savings, NOW and money market deposits 5,874 43,875 49,749 Time deposits (347) 3,161 2,814 Brokered CDs 17,505 — 17,505 Total deposits 23,032 47,036 70,068 Borrowings 5,242 2,807 8,049 Total interest expense 28,274 49,843 78,117 Change in net interest income $ (14,827) $ 36,298 $ 21,471 Provision for Credit Losses We establish an allowance for credit losses through a provision for credit losses charged as an expense in our Consolidated Statements of Income.

… 63 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

4 edited+0 added−0 removed21 unchanged
Biggest changeChange in Market Interest Rates as of December 31, 2023 Estimated Increase (Decrease) in: Immediate Shift Economic Value of Equity Economic Value of Equity ($) Year 1 Net Interest Income Year 1 Net Interest Income ($) +400 basis points -24.0% (358,682) -11.7% (30,832) +300 basis points -15.5% (232,293) -6.0% (15,696) +200 basis points -8.3% (123,513) -2.0% (5,368) +100 basis points -1.8% (26,588) -0.1% (235) -100 basis points -3.2% (47,367) -2.3% (6,185) -200 basis points -6.5% (97,549) -3.5% (9,140) 78
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
The projections assume immediate, parallel shifts 77 downward of the yield curve of 100 and 200 basis points and immediate, parallel shifts upward of the yield curve of 100, 200, 300 and 400 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 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.
Potential changes to our net interest income and economic value of equity in hypothetical rising and declining rate scenarios calculated as of December 31, 2023 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, 2024 are presented in the following table.
In order to counter changes in risk, we evaluate costs and other trade-offs associated with changing the composition of assets and liabilities; such as selling fixed rate securities, extending the term of borrowings, changing pricing of loans or deposits or selling residential mortgage loans in the secondary market.
In order to counter changes in risk, we evaluate costs and other trade-offs associated with changing the composition of assets and liabilities; such as selling fixed rate securities, extending the term of borrowings, derivative hedging transactions, changing pricing of loans or deposits or selling residential mortgage loans in the secondary market.

Other AMAL 10-K year-over-year comparisons