Executive Summary

Core EPS was $0.88 and GAAP diluted EPS was $0.84, with net interest margin steady at 3.55% and net interest income up 3.3% quarter-over-quarter to $72.9 million .
On-balance sheet deposits rose 4.3% to $7.7B; excluding $112.3M temporary pension deposits withdrawn the next day, deposits grew $208.9M (2.8%). Political deposits increased 13% to $1.2B, aiding funding stability despite higher interest-bearing mix (deposit cost +3 bps to 1.62%) .
2025 guidance was maintained: Net interest income $293–$297M and core pre-tax pre-provision earnings $159–$163M; Q3 2025 outlook calls for NII $74–$76M and flat NIM near Q2 levels .
Capital return remained a catalyst: $9.7M in buybacks in Q2 and a $0.14 dividend declared on July 22; CET1 at 14.13% and TBVPS increased to $24.33 (+3.5% QoQ) .
Watch credit costs and solar-related exposures: provision rose to $4.9M, criticized/classified loans increased to $97.8M, and a syndicated C&I solar originator faced DIP financing now $10.8M as of call date .

What Went Well and What Went Wrong

What Went Well

Balanced growth: Net interest income grew 3.3% QoQ to $72.9M; core non-interest income improved to $9.3M, and deposits expanded across mission-aligned segments (political +$136.5M to $1.2B) .
Capital formation and per-share value: TBVPS increased to $24.33 (+$0.82 QoQ), CET1 remained strong at 14.13%, and leverage ratio held at 9.22% even with elevated buybacks .
Management confidence and strategic clarity: “We are achieving our results because our banking model is flexible. We have many levers we can pull to drive performance,” said CEO Priscilla Sims Brown, reinforcing reliability of earnings and the multi-lever model (deposits, securities mix, loan origination) .

What Went Wrong

Credit costs and upgrades/downgrades: Provision rose to $4.9M (vs. $0.6M in Q1), reflecting higher reserves on one syndicated C&I loan and macro CECL impacts in consumer solar; criticized/classified loans increased by $13.9M QoQ to $97.8M .
Deposit mix pressure on NIM: Non-interest-bearing deposits fell to 36% of ending mix (38% average), lifting deposit costs +3 bps to 1.62%; NIM stayed flat at 3.55% instead of modest expansion .
Solar consumer and small business stress: Net charge-offs annualized at 0.30% included $2.6M in consumer solar and $0.9M small business C&I; management expects solar stress to persist while pausing small business originations .

Financial Results

Core Earnings, NII, Non-Interest, Margins, and EPS vs Prior Periods

Metric	Q4 2024	Q1 2025	Q2 2025
Net Interest Income ($USD Thousands)	$73,095	$70,577	$72,909
Non-Interest Income ($USD Thousands)	$4,789	$6,406	$8,025
Core Non-Interest Income ($USD Thousands)	$9,500	$9,100	$9,300
Net Interest Margin (%)	3.59%	3.55%	3.55%
Efficiency Ratio (Core) (%)	49.82%	52.11%	49.21%
EPS (GAAP Diluted) ($)	$0.79	$0.81	$0.84
EPS (Core Diluted) ($)	$0.90	$0.88	$0.88

Balance Sheet and Key Credit Metrics

Metric	Q4 2024	Q1 2025	Q2 2025
Deposits (On-Balance Sheet, $USD Thousands)	$7,180,605	$7,412,072	$7,733,272
Political Deposits ($USD Millions)	$969.6	$1,100.0	$1,200.3
Net Loans Receivable ($USD Thousands)	$4,612,838	$4,619,830	$4,655,346
Loan Yield (%)	5.00%	5.00%	5.05%
NPA / Total Assets (%)	0.31%	0.41%	0.41%
Provision for Credit Losses ($USD Thousands)	$3,686	$596	$4,890

Segment/Deposit Details (Q2 2025)

Metric	Q2 2025	Notes
Total Core Deposits ($USD Millions)	$7,586.3	Excludes brokered CDs, listing services, transactional and temporary deposits
Super-Core Deposits ($USD Billions)	$4.2	55% of core deposits; weighted avg. duration 18 years
Deposit Cost (%)	1.62%	+3 bps QoQ
Uninsured Deposits ($USD Billions)	$3.90	50.5% of total deposits

Estimates vs Actuals (Q2 2025)

Metric	Consensus (S&P Global)	Actual (Company)
EPS (Primary) ($)	0.87*	0.88
Revenue ($USD Millions)	82.5*	80.9 (NII + Non-Interest Income)

Values marked with * retrieved from S&P Global.

Note: S&P Global “Revenue” for banks typically reflects total operating revenue; company-reported NII + non-interest income totaled ~$80.9M for Q2 2025 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Income ($USD Millions)	FY 2025	$293–$297	$293–$297	Maintained
Core PTPP Earnings ($USD Millions)	FY 2025	$159–$163	$159–$163	Maintained
NIM (%)	Q3 2025	Modest expansion potential from Q1 guide	Near flat vs Q2 (guidance: NII $74–$76M)	Maintained/clarified
YE Balance Sheet Growth	FY 2025	~3%	~3%	Maintained
Tier 1 Leverage	FY 2025	~9.0% baseline	~9.0% baseline	Maintained
Core Efficiency (Outer Band)	FY 2025	~52%	~52%	Maintained
Core ROAA (%)	FY 2025	~1.3%	~1.3%	Maintained
Core Revenue Growth (%)	FY 2025	3.5%–5.0%	3.5%–5.0%	Maintained
Dividend	Ongoing	$0.14/share (Q1 paid)	$0.14/share declared 7/22; payable 8/21/25	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
Digital monetization platform	Initiated; expenses to ramp in 2025	Go-live in Q3; expect expense uptick but manage to ~52% core efficiency outer band	Execution progressing; near-term OpEx uptick
Political deposits	Rebuild post-election; +11% in Q1 to $1.1B	+13% in Q2 to $1.2B; further inflows noted into July	Strengthening; supports Q4 margin mix
Renewable/solar lending/pace	Pipeline stable; C-PACE partnerships to ramp H2	Consumer solar stress persists; one C&I originator under DIP financing; PACE assets grew $16.3M	Mixed: commercial solar/pace resilient; consumer solar stress
Geographic expansion (California)	Existing presence; recruiting for growth	Hires: Western Regional Director, CRE/Bay Area lead, Director of Climate & C&I Lending	Accelerating talent-led growth
Capital return	New $40M buyback authorized in March; dividend steady	$9.7M repurchased in Q2; $0.14 dividend declared	Continued capital return
Credit quality	NPA up in Q1, ACL coverage adjusted	Provision up; criticized/classified +$13.9M; NPA stable at 0.41%	Watchlist growing; coverage adequate

Management Commentary

Strategic flexibility: “We are achieving our results because our banking model is flexible. We have many levers we can pull to drive performance and that creates reliability and predictability for our shareholders, customers, and employees.” — Priscilla Sims Brown (CEO) .
Performance recognition: American Banker ranked AMAL #38 among $2–$10B asset banks and “most improved” among top 100, moving nearly 50 spots in one year. — Jason Darby (CFO) .
Margin outlook: Loan bring-ons at high-5% to ~6% (CRE/MF), ~6.7% (C&I), ~7% (PACE); expect Q3 NIM flat, potential expansion in Q4 as DDA mix improves and securities drag moderates — Jason Darby (CFO) .
Credit update: One syndicated C&I (solar originator) under DIP financing ($10.8M as of call date); reserve built, collateral exists; outcome fluid — Jason Darby (CFO) .

Q&A Highlights

California expansion: Focused on organic growth with recruited talent; no M&A announced; expansion in LA and East Bay targeted — CEO .
Credit provisioning: Provision taken loan-by-loan; comfortable with current reserves; watch macro and NYC policy changes, but portfolio feels well-reserved — CFO .
NIM trajectory: Q3 flat expected; Q4 potential expansion from DDA mix shift and replacing securities with higher-yield loans — CFO .
Expense run-rate: Back-half ramp from digital deployment and producer hires; aim to maintain ~$170M OpEx and ~52% core efficiency outer band — CFO .
Payout policy: Target 20%–25% quarterly payout (buybacks + dividends); dividend yield targeted ~2%–2.5%, potential for incremental penny increases over time — CFO .

Estimates Context

Q2 2025 outcome vs S&P Global: EPS 0.88 beat vs 0.87*, while “Revenue” 80.9M lagged vs 82.5M*; the revenue miss reflects deposit mix pressure and lower trust-related fees despite stronger NII and higher securities income . Values marked with * retrieved from S&P Global.
Forward outlook (S&P Global): Q3 2025 EPS 0.875* and revenue 83.3M*, Q4 2025 EPS 0.905* and revenue 85.4M*; estimate counts are thin (EPS: 2; Revenue: 1), implying revisions could be sensitive to Q3 execution and margin mix shifts [GetEstimates; counts in tool output]*.
Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Earnings durability: Core EPS held at $0.88 with stable NIM and rising NII; capital strength (CET1 14.13%) supports ongoing buybacks and dividend continuity .
Funding resilience: Mission-aligned super-core deposits ($4.2B; 55% of core) and political deposits ($1.2B) provide sticky funding, though mix is skewing interest-bearing; expect DDA tailwind into Q4 .
Near-term watch items: Provision and criticized/classified loan increases, especially around consumer solar and the syndicated C&I credit under DIP; coverage and collateral reduce tail risk but outcomes remain fluid .
Margin path: Flat Q3 NIM guidance with potential Q4 expansion as deposits remix and loan yields outpace securities resets; loan bring-ons suggest asset-side lift .
Operating leverage: Digital platform go-live in Q3 raises expenses temporarily but management is holding the ~52% core efficiency outer band; revenue per share and TBVPS continue to trend upward .
Guidance intact: FY NII and core PTPP maintained; Q3 NII $74–$76M sets a checkpoint; any beat on OpEx could improve PTPP vs range midpoint .
Tactical positioning: Strong capital and liquidity enable opportunistic buybacks; dividend policy signals balanced growth/return profile .

Amalgamated Financial Corp. (AMAL)·Q2 2025 Earnings Summary