Executive Summary

Core diluted EPS of $0.88 vs S&P Global consensus $0.80; GAAP diluted EPS $0.81. Core EPS beat by $0.08; revenue of ~$76.4M came in modestly below the ~$77.4M consensus. Bold: EPS beat, revenue slight miss [Values retrieved from S&P Global]*. Reported results: net income $25.0M, core net income $27.1M; net interest margin 3.55% .
Deposits rebuilt post-election: total deposits +$446M including off-balance sheet; political deposits +$103M to ~$1.1B; short-term borrowings paid down; liquidity strong at ~$3.6B two-day coverage; CET1 14.27% and TCE ratio 8.73% .
Guidance maintained: FY25 net interest income $293–$297M; core pre-tax pre-provision earnings $159–$163M; Q2 targets include NIM expansion +2–4 bps and NII $72–$74M; YE balance sheet growth ~3%; core efficiency outer band ~52%; Tier 1 leverage baseline 9% .
Capital return accelerating: $3.5M buybacks in Q1, new $40M authorization, dividend increased to $0.14/share; management expects to be opportunistic with repurchases while keeping Tier 1 leverage ≥9% .
Near-term stock catalysts: sustained deposit inflows and buyback execution vs. watchpoints from rising nonperforming assets (one $8.3M C&I loan to nonaccrual) and consumer solar/small business charge-offs; digital transformation spend temporarily elevates core efficiency ratio .

What Went Well and What Went Wrong

What Went Well

Deposit momentum and liquidity: total deposits +$445.9M including off-balance sheet; political deposits +$102.7M to ~$1.1B; two-day liquidity ~$3.6B covering ~94% of uninsured deposits. CEO: “All of our key earnings metrics came in strong and as expected…our balance sheet boasts…high levels of immediate and two-day liquidity” .
Margin resilience and guidance credibility: NIM 3.55% within 1 bp of prior guidance; NII $70.6M landed mid-range; management reaffirmed FY25 outlook, projecting modest NIM expansion through year .
Capital and tangible book compounding: CET1 14.27%, Tier 1 leverage 9.22%; tangible book value per share up 4% QoQ to $23.51; 10th consecutive quarter of TCE ratio improvement .

What Went Wrong

Earnings pressure in expected trough: NII declined $2.5M QoQ; NIM contracted 4 bps; core operating revenue down ~$2.9M QoQ due to liability remix and lower ICS/non-core items .
Asset quality mixed: nonperforming assets rose to $33.9M (0.41% of assets), driven by an $8.3M C&I nonaccrual; net charge-offs included ~$1.7M in consumer solar and ~$0.8M in small business C&I .
Elevated core efficiency near “outer band”: core non-interest expense rose on $2.1M higher professional fees tied to digital deployment; core efficiency ratio deteriorated to 52.11% .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Net Interest Income ($USD Millions)	$68.0	$73.1	$70.6
Core Operating Revenue ($USD Millions, non-GAAP)	$76.3	$82.6	$79.7
Diluted EPS (GAAP) ($USD)	$0.89	$0.79	$0.81
Core Diluted EPS ($USD, non-GAAP)	$0.83	$0.90	$0.88
Net Interest Margin (%)	3.49%	3.59%	3.55%
Deposit Cost (%)	1.46%	1.53%	1.59%
Efficiency Ratio (%)	48.75%	52.83%	54.10%
Core Efficiency Ratio (%)	50.40%	49.82%	52.11%

Estimates vs. actual (S&P Global):

Metric	Q1 2025 Consensus	Q1 2025 Actual
Primary EPS ($USD)	$0.80*	$0.88*
Revenue ($USD Millions)	$77.4*	$76.4*
Primary EPS – # of Estimates	2*	—
Revenue – # of Estimates	1*	—

Values retrieved from S&P Global.*

Segment breakdown – Loans held for investment:

Segment	Q1 2024 Amount ($MM)	Q1 2024 %	Q4 2024 Amount ($MM)	Q4 2024 %	Q1 2025 Amount ($MM)	Q1 2025 %
Commercial & Industrial	$1,014.1	22.9%	$1,175.5	25.2%	$1,183.3	25.3%
Multifamily	$1,175.5	26.6%	$1,351.6	28.9%	$1,372.0	29.3%
Commercial Real Estate	$353.6	8.0%	$411.4	8.8%	$409.0	8.7%
Residential RE Lending	$1,419.3	32.1%	$1,313.6	28.1%	$1,303.9	27.9%
Consumer Solar	$398.5	9.0%	$365.5	7.8%	$356.6	7.6%
Total Loans HFI	$4,423.8	100%	$4,672.9	100%	$4,677.5	100%

Key KPIs vs prior periods:

KPI	Q1 2024	Q4 2024	Q1 2025
Total Deposits ($USD Billions)	$7.31	$7.18	$7.41
CET1 Ratio (%)	13.68%	13.90%	14.27%
Tier 1 Leverage Ratio (%)	8.29%	9.00%	9.22%
Tangible Book Value/Share ($USD)	$19.73	$22.60	$23.51
NPA / Total Assets (%)	0.42%	0.31%	0.41%
ACL / Total Loans (%)	1.46%	1.29%	1.23%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Income	FY 2025	$293–$297M	$293–$297M	Maintained
Core PTPP Earnings	FY 2025	$159–$163M	$159–$163M	Maintained
Core Efficiency Ratio	FY 2025	~52% outer band	~52% outer band	Maintained
Core ROAA	FY 2025	~1.3%	~1.3%	Maintained
YE Balance Sheet Growth	FY 2025	~3%	~3%	Maintained
Tier 1 Leverage	FY 2025	≥9% baseline	≥9% baseline	Maintained
Q2 NIM	Q2 2025	+2–4 bps vs Q1	+2–4 bps vs Q1	Maintained
Q2 NII	Q2 2025	$72–$74M	$72–$74M	Maintained
Balance Sheet Target	Q2 2025	~$8.4B	~$8.4B	Maintained
Dividend	Ongoing	$0.14/share declared	$0.14/share payable May 22	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Deposit franchise & political deposits	Deposits +$145.6M; political +$231.9M; off-balance sheet +$114.1M	Election-cycle outflows; off-balance sheet peaked $1.3B; strategic remix	Deposits +$445.9M incl. off-BS; political +$102.7M to ~$1.1B; rebuild underway	Recovery post-election
Off-balance sheet deposit strategy & ICS fees	ICS fees boosted core in Q3; brokered CDs reduced	ICS One-Way Sell fees fell sharply at cycle end	Prescriptive use to hit ~$8.4B balance sheet before shifting off-BS	More targeted
Margin/NII outlook	NIM +5 bps to 3.51%	NIM 3.59% +8 bps; NII +$1.0M	NIM 3.55%; guide modest expansion through year; Q2 NII $72–$74M	Stable to improving
Digital transformation spend	Initiatives ramping into 2025	Higher data processing; efficiency improved	+$2.1M professional fees; core efficiency ~52% band	Opex ramping
Credit quality	NPA down to 0.34%	NPA 0.31%; ACL 1.29%	NPA up to 0.41%; $8.3M C&I nonaccrual; solar/small business charge-offs	Mixed; pockets of stress
C-PACE pipeline & clean energy	C-PACE originations framework; impact portfolio detailed	—	Expect ramp to $15–$20M/quarter in 2H; Allectrify partnership execution	Building
Capital return	TBV up $1.69; dividends paid	$0.12 dividend; buybacks modest; TBV up	$0.14 dividend; $3.5M buybacks; $40M authorization; intent to be aggressive	Accelerating
Regulatory/political risk	General caution in macro; ESG scrutiny acknowledged	Heightened regulatory environment post bank failures	Management monitoring executive orders; diversification; liquidity/capital defense	Vigilant stance

Management Commentary

CEO: “All of our key earnings metrics came in strong and as expected…our balance sheet boasts a low-risk asset profile…high levels of immediate and two-day liquidity, and return metrics near the top of our peer stack” .
CFO: “We are maintaining our full year 2025 guidance of core pretax pre-provision earnings of $159–$163M, and net interest income of $293–$297M…we expect our net interest margin to increase modestly through the remainder of the year” .
Chief Banking Officer: Political deposits are replenishing consistent with historical patterns; deposit inflows diversified across sectors .
CFO on buybacks: “We’ve modeled a fairly aggressive repurchase program…capital ratios not really getting below a 9.20 level…comfortable with my 9% threshold” .

Q&A Highlights

Clean energy funding outlook: No signs of funding drying up; demand for electricity and investment remains robust; non-partisan geographic strength cited .
Buyback strategy and capital floor: New $40M authorization; intention to be aggressive; Tier 1 leverage to remain ≥9% with modeled repurchase program .
Political deposit pipeline: Rebuild underway with double-digit growth across categories; additional ~$300M early in Q2 noted but cautioned not to extrapolate .
Off-balance sheet approach: Prescriptive use to reach ~$8.4B balance sheet target first, then utilize off-balance sheet for excess flow to manage NII and NIM trajectory .
Expense and digital transformation: Professional fees tied to CRM/deployment; expenses to ramp toward ~$170M in 2025 while maintaining core efficiency band around 52% .

Estimates Context

Q1 2025 primary EPS of $0.88 vs consensus $0.80, a $0.08 beat; revenue ~$76.4M vs consensus ~$77.4M, a ~$1.0M miss [Values retrieved from S&P Global]*.
Drivers of the beat/miss: Provision expense declined to $0.6M (from $3.7M) and non-interest items included a $0.8M valuation gain on residential loans, offset by lower non-core ICS fees and solar tax equity income; NII declined as expected with liability remix and rate resets .
Implications: Street may lift EPS estimates modestly on deposit momentum and NIM stability, while trimming revenue lines for lower transaction-related fees amid post-election normalization .

Key Takeaways for Investors

Deposit franchise strength is intact and a near-term catalyst: broad-based inflows, political rebuild, and strategic off-balance sheet usage support NII/NIM targets .
Capital return is stepping up: $40M buyback authorization and higher dividend create downside support; management willing to be opportunistic while preserving Tier 1 leverage ≥9% .
Watch asset quality: NPA uptick (0.41%) and a single $8.3M C&I nonaccrual; consumer solar and small business charge-offs bear monitoring as macro uncertainty persists .
Margin path looks modestly positive: NIM guide +2–4 bps in Q2 and modest expansion through 2025 contingent on deposit trajectory and disciplined remix .
Digital transformation spend is an Opex headwind near term; efficiency should improve as NII ramps and deployments begin to depreciate through P&L .
C-PACE pipeline and clean energy lending remain a growth lever with attractive yield/credit profile; partnership execution (Allectrify) supports origination scalability in 2H .
Trading lens: Near term, stock may respond to buyback cadence and deposit updates; medium term, thesis hinges on delivering FY25 guidance amid stable NIM and manageable credit normalization .

Notes: Non-GAAP metrics (core EPS/revenue/efficiency) reconciled in filings . Dividend declaration: $0.14 per share payable May 22, 2025 . Share repurchases: ~$105K shares ($3.5M) in Q1; new $40M program with ~75K shares repurchased through April 22 .

Amalgamated Financial Corp. (AMAL)·Q1 2025 Earnings Summary