Taxation – Page 9 – NewzIntel.com

MIL-OSI: Valley National Bancorp Announces Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, July 24, 2025 (GLOBE NEWSWIRE) — Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the second quarter 2025 of $133.2 million, or $0.22 per diluted common share, as compared to the first quarter 2025 net income of $106.1 million, or $0.18 per diluted common share, and net income of $70.4 million, or $0.13 per diluted common share, for the second quarter 2024. Excluding all non-core income and charges, our adjusted net income (a non-GAAP measure) was $134.4 million, or $0.23 per diluted common share, for the second quarter 2025, $106.1 million, or $0.18 per diluted common share, for the first quarter 2025, and $71.6 million, or $0.13 per diluted common share, for the second quarter 2024. See further details below, including a reconciliation of our non-GAAP adjusted net income, in the “Consolidated Financial Highlights” tables.

Ira Robbins, CEO, commented, “I am pleased by the continued balance sheet strength and commercial loan growth exhibited during the second quarter. Our profitability metrics are trending positively, consistent with our expectations for improvement throughout the year. We remain focused on growing low-cost deposits, which we expect will support our aspirations in 2025 and beyond.”

Mr. Robbins continued, “Our quarterly credit results continued to improve as illustrated by the significant reduction in our provision for loan losses on both a quarter-over-quarter and year-over-year basis. Our allowance coverage ratio remains at a comfortable level, and we expect general stability going forward.”

Key financial highlights for the second quarter 2025:

Net Interest Income and Margin: Our net interest margin on a tax equivalent basis increased by 5 basis points to 3.01 percent in the second quarter 2025 as compared to 2.96 percent for the first quarter 2025. Net interest income on a tax equivalent basis of $433.7 million for the second quarter 2025 increased $12.3 million compared to the first quarter 2025 and increased $30.7 million as compared to the second quarter 2024. The increase in net interest income from the first quarter 2025 was mainly driven by higher yields on new loan originations, increases in average loans and taxable investments and one additional day during the second quarter 2025. See additional details in the “Net Interest Income and Margin” section below.
Loan Portfolio: Total loans increased $734.3 million, or 6.0 percent on an annualized basis, to $49.4 billion at June 30, 2025 from March 31, 2025 mostly due to increases of $719.8 million and $137.6 million in commercial and industrial (C&I) and automobile loans, respectively. Total commercial real estate (CRE) loans (including construction loans) decreased $288.6 million from March 31, 2025 largely due to normal repayments and continued selective origination activity. As a result, our CRE loan concentration ratio (defined as total commercial real estate loans held for investment and held for sale, excluding owner occupied loans, as a percentage of total risk-based capital) declined to approximately 349 percent at June 30, 2025 from 353 percent at March 31, 2025. See the “Loans” section below for more details.
Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $594.0 million and $594.1 million at June 30, 2025 and March 31, 2025, respectively, representing 1.20 percent and 1.22 percent of total loans at each respective date. During the second quarter 2025, we recorded a provision for credit losses for loans of $37.8 million as compared to $62.7 million and $82.1 million for the first quarter 2025 and second quarter 2024, respectively. See the “Credit Quality” section below for more details.
Credit Quality: Net loan charge-offs totaled $37.8 million for the second quarter 2025 as compared to $41.9 million and $36.8 million for the first quarter 2025 and second quarter 2024, respectively. Non-accrual loans totaled $354.4 million, or 0.72 percent of total loans, at June 30, 2025 as compared to $346.5 million, or 0.71 percent of total loans, at March 31, 2025. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased $147.5 million to $199.2 million, or 0.40 percent of total loans, at June 30, 2025 as compared to $51.7 million, or 0.11 percent of total loans, at March 31, 2025. The majority of this increase related to three CRE loans, of which two were no longer past due in July 2025. See the “Credit Quality” section below for more details.
Deposits: Total deposit balances increased $759.4 million to $50.7 billion at June 30, 2025 as compared to $50.0 billion at March 31, 2025 mainly due to increases in both direct and indirect (brokered) customer time deposits during the second quarter 2025, partially offset by the outflows of certain indirect customer deposits in the savings, NOW and money market deposit category. Non-interest bearing deposits increased $118.2 million to $11.7 billion at June 30, 2025 from March 31, 2025. See the “Deposits” section below for more details.
Subordinated Debt Redemptions: On June 15, 2025, we redeemed in full $115 million of 5.25 percent fixed-to-floating rate subordinated notes issued in June 2020 and due in June 2030. The transaction was accounted for as an early debt extinguishment and resulted in a $922 thousand pre-tax loss reported within non-interest expense for the second quarter 2025. In addition, we repaid $100 million of 4.55 percent fixed rate subordinated notes that matured on June 30, 2025.
Non-Interest Income: Non-interest income increased $4.3 million to $62.6 million for the second quarter 2025 as compared to the first quarter 2025 mainly due to increases of $2.8 million and $2.0 million in capital markets income and service charges on deposit accounts, respectively. The increase in capital markets income was largely driven by a higher volume of interest rate swap transactions executed for commercial loan customers during the second quarter 2025.
Non-Interest Expense: Non-interest expense increased $7.5 million to $284.1 million for the second quarter 2025 as compared to the first quarter 2025 largely due to an increase of $4.3 million in professional and legal fees driven by higher consulting and legal expenses. Salary and employee benefits expense also increased $2.8 million from the first quarter 2025 mainly due to annual salary merit increases late in the first quarter 2025 and higher cash incentive compensation and severance related expenses. These items were partially offset by lower payroll taxes.
Efficiency Ratio: Our efficiency ratio was 55.20 percent for the second quarter 2025 as compared to 55.87 percent and 59.62 percent for the first quarter 2025 and second quarter 2024, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.
Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 0.86 percent, 7.08 percent and 9.62 percent for the second quarter 2025, respectively. Annualized ROA, ROE, and tangible ROE, adjusted for non-core income and charges, were 0.87 percent, 7.15 percent and 9.71 percent for the second quarter 2025, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.

Net Interest Income and Margin

Net interest income on a tax equivalent basis of $433.7 million for the second quarter 2025 increased $12.3 million compared to the first quarter 2025 and increased $30.7 million as compared to the second quarter 2024. Interest income on a tax equivalent basis increased $20.3 million to $806.3 million for the second quarter 2025 as compared to the first quarter 2025. The increase was mostly driven by (i) higher yields on new loan originations, (ii) increased average loan balances driven by new organic loan originations largely within the C&I loan portfolio, (iii) additional interest income from purchases of taxable investments mainly within the available for sale portfolio during the first half of 2025 and (iv) one additional day in the second quarter 2025. Total interest expense increased $8.0 million to $372.6 million for the second quarter 2025 as compared to the first quarter 2025 largely due to (i) a $548.7 million increase in average time deposit balances, (ii) the increased cost of certain non-maturity deposits and (iii) the aforementioned increase in day count. See the “Deposits” and “Other Borrowings” sections below for more details.

Net interest margin on a tax equivalent basis of 3.01 percent for the second quarter 2025 increased by 5 basis points from 2.96 percent for the first quarter 2025 and increased 17 basis points from 2.84 percent for the second quarter 2024. The increase as compared to the first quarter 2025 was mostly due to the 7 basis point increase in the yield on average interest earning assets largely caused by higher interest rates on new loan originations in the second quarter 2025 and higher yielding investment purchases. The overall cost of average interest bearing liabilities increased 2 basis points to 3.56 percent for the second quarter 2025 as compared to the first quarter 2025 mostly due to higher interest rates on certain non-maturity deposit products, partially offset by a lower overall cost of time deposits driven by both new volumes and maturities. Our cost of total average deposits was 2.67 percent for the second quarter 2025 as compared to 2.65 percent and 3.18 percent for the first quarter 2025 and the second quarter 2024, respectively.

Loans, Deposits and Other Borrowings

Loans. Total loans increased $734.3 million, or 6.0 percent on an annualized basis, to $49.4 billion at June 30, 2025 from March 31, 2025 mainly due to increases in the C&I and automobile loan portfolios, partially offset by lower CRE loan balances. C&I loans grew by $719.8 million, or 28.4 percent on an annualized basis, to $10.9 billion at June 30, 2025 from March 31, 2025 largely due to our continued strategic focus on organic growth within this category. Automobile loans increased by $137.6 million, or 27.0 percent on an annualized basis, to $2.2 billion at June 30, 2025 from March 31, 2025 mainly due to high quality consumer demand generated by our indirect auto dealer network and low prepayment activity within the portfolio. Residential mortgage loans also moderately increased $73.6 million to $5.7 billion at June 30, 2025 from March 31, 2025 as new loan originations outpaced repayment activity. Total CRE (including construction) loans decreased $288.6 million to $28.8 billion at June 30, 2025 from March 31, 2025. The decrease was largely driven by runoff from repayment activity and our efforts to focus new CRE loan originations on more profitable holistic banking clients. Additionally, construction loans decreased $172.1 million to $2.9 billion at June 30, 2025 from March 31, 2025 mainly due to the migration of completed projects to permanent financing within the multifamily loan category of the CRE loan portfolio during the second quarter 2025.

Deposits. Actual ending balances for deposits increased $759.4 million to $50.7 billion at June 30, 2025 from March 31, 2025 due to increases of $962.9 million and $118.2 million in time deposits and non-interest bearing deposits, respectively, partially offset by a $321.6 million decrease in savings, NOW and money market deposit balances. The increase in time deposit balances was mainly driven by continued deposit inflows from new promotional retail CD offerings and additional fully-insured indirect (i.e., brokered) customer CDs during the second quarter 2025. The increase in non-interest bearing deposit balances was mostly due to higher commercial customer deposit inflows in the second quarter 2025. Savings, NOW and money market deposit balances decreased at June 30, 2025 from March 31, 2025 largely due to lower indirect customer deposits, as well as some seasonal runoff in governmental deposits account balances. Total indirect customer deposits (including both brokered money market and time deposits) totaled $6.5 billion and $6.3 billion at June 30, 2025 and March 31, 2025, respectively. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 23 percent, 52 percent and 25 percent of total deposits as of June 30, 2025, respectively, as compared to 23 percent, 53 percent and 24 percent of total deposits as of March 31, 2025, respectively.

Other Borrowings. Short-term borrowings, consisting of securities sold under agreements to repurchase and FHLB advances, increased $103.2 million to $162.2 million at June 30, 2025 from March 31, 2025 largely due to an increase in FHLB advances. Long-term borrowings totaled $2.9 billion at June 30, 2025 and remained relatively unchanged as compared to March 31, 2025. In June 2025, we fully redeemed $215 million of subordinated notes that were mostly offset by the issuance of new long-term FHLB advances during the second quarter 2025.

Credit Quality

Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, increased $4.6 million to $360.8 million at June 30, 2025 as compared to March 31, 2025. Non-accrual loans increased $7.9 million to $354.4 million at June 30, 2025 as compared to $346.5 million at March 31, 2025 mainly because of a net increase in non-performing CRE loans during the second quarter 2025, which was partially offset by a decline in non-performing C&I loans. Non-accrual C&I loans decreased largely due to the full charge-offs of four loan relationships totaling $17.4 million during the second quarter 2025. Non-accrual loans represented 0.72 percent of total loans at June 30, 2025 as compared to 0.71 percent of total loans at March 31, 2025. OREO decreased $2.9 million to $4.8 million at June 30, 2025 from March 31, 2025 mostly due to the fair valuation write-down related to one CRE property recorded during the second quarter 2025.

Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased $147.5 million to $199.2 million, or 0.40 percent of total loans, at June 30, 2025 as compared to $51.7 million, or 0.11 percent of total loans, at March 31, 2025.

Loans 30 to 59 days past due increased $89.5 million to $123.0 million at June 30, 2025 as compared to March 31, 2025 due, in large part, to one $39.2 million CRE loan and one $35.0 million construction loan included in this early stage delinquency category at June 30, 2025. The $39.2 million CRE loan 30 to 59 days past due was subsequently paid in full by the borrower in July 2025. Loans 60 to 89 days past due increased $62.8 million to $73.3 million at June 30, 2025 as compared to March 31, 2025 mainly due to a $60.6 million CRE loan. This past due loan was subsequently modified and was brought current to its restructured terms in July 2025. Loans 90 days or more past due and still accruing interest decreased $4.8 million to $2.9 million at June 30, 2025 as compared to March 31, 2025 mainly due to a decrease in residential mortgage loan delinquencies. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection.

Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at June 30, 2025, March 31, 2025 and June 30, 2024:

		June 30, 2025				March 31, 2025				June 30, 2024
				Allocation				Allocation				Allocation
				as a % of				as a % of				as a % of
		Allowance		Loan		Allowance		Loan		Allowance		Loan
		Allocation		Category		Allocation		Category		Allocation		Category
		($ in thousands)
Loan Category:
Commercial and industrial loans		$	173,415	1.60	%	$	184,700	1.82	%	$	149,243	1.57	%
Commercial real estate loans:
	Commercial real estate		270,937	1.04			266,938	1.02			246,316	0.87
	Construction		64,042	2.24			54,724	1.81			54,777	1.54
Total commercial real estate loans			334,979	1.16			321,662	1.10			301,093	0.95
Residential mortgage loans			48,830	0.86			48,906	0.87			47,697	0.85
Consumer loans:
	Home equity		3,689	0.58			3,401	0.56			3,077	0.54
	Auto and other consumer		18,587	0.55			19,531	0.62			18,200	0.63
Total consumer loans			22,276	0.56			22,932	0.61			21,277	0.62
Allowance for loan losses			579,500	1.17			578,200	1.19			519,310	1.03
Allowance for unfunded credit commitments			14,520				15,854				13,231
Total allowance for credit losses for loans		$	594,020			$	594,054			$	532,541
Allowance for credit losses for loans as a % of total loans				1.20	%			1.22	%			1.06	%

Our loan portfolio, totaling $49.4 billion at June 30, 2025, had net loan charge-offs totaling $37.8 million for the second quarter 2025 as compared to $41.9 million and $36.8 million for the first quarter 2025 and the second quarter 2024, respectively. Gross loan charge-offs totaled $42.1 million for the second quarter 2025 and included $23.1 million of partial and full charge-offs related to five non-performing C&I loan relationships with combined specific reserves of $11.2 million at March 31, 2025.

The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.20 percent at June 30, 2025, 1.22 percent at March 31, 2025, and 1.06 percent at June 30, 2024. For the second quarter 2025, the provision for credit losses for loans totaled $37.8 million as compared to $62.7 million and $82.1 million for the first quarter 2025 and second quarter 2024, respectively. The second quarter 2025 provision reflects, among other factors, the impact of loan growth mainly within the C&I loan portfolio and loan charge-offs, partially offset by a decline in quantitative reserves in certain loan categories and lower specific reserves associated with collateral dependent loans at June 30, 2025.

Capital Adequacy

Valley’s total risk-based capital, Tier 1 capital, common equity tier 1 capital, and Tier 1 leverage capital ratios were 13.67 percent, 11.57 percent, 10.85 percent and 9.49 percent, respectively, at June 30, 2025 as compared to 13.91 percent, 11.53 percent, 10.80 percent and 9.41 percent, respectively, at March 31, 2025. The reduction in our total risk-based capital ratio reflects the early redemption of our $115 million of 5.25 percent fixed-to-floating rate subordinated notes due in June 2030, which was previously eligible for full regulatory capital treatment.

Investor Conference Call

Valley’s CEO, Ira Robbins, will host a conference call with investors and the financial community at 11:00 AM (ET) today to discuss Valley’s second quarter 2025 earnings. Interested parties should preregister using this link: https://register.vevent.com/register to receive the dial-in number and a personal PIN, which are required to access the conference call. The teleconference will also be webcast live: https://edge.media-server.com and archived on Valley’s website through Monday, August 25, 2025. Investor presentation materials will be made available prior to the conference call at valley.com.

About Valley

As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with approximately $63 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California, and Illinois, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to valley.com or call our Customer Care Center at 800-522-4100.

Forward-Looking Statements

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “intend,” “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “would,” “could,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

the impact of market interest rates and monetary and fiscal policies of the U.S. federal government and its agencies in connection with prolonged inflationary pressures, which could have a material adverse effect on our clients, our business, our employees, and our ability to provide services to our customers;
the impact of unfavorable macroeconomic conditions or downturns, including instability or volatility in financial markets resulting from the impact of tariffs, any retaliatory actions, related market uncertainty, or other factors; U.S. government debt default or rating downgrade; unanticipated loan delinquencies; loss of collateral; decreased service revenues; increased business disruptions or failures; reductions in employment; and other potential negative effects on our business, employees or clients caused by factors outside of our control, such as new legislation and policy changes under the current U.S. presidential administration, geopolitical instabilities or events, natural and other disasters, including severe weather events, health emergencies, acts of terrorism, or other external events;
the impact of any potential instability within the U.S. financial sector or future bank failures, including the possibility of a run on deposits by a coordinated deposit base, and the impact of the actual or perceived concerns regarding the soundness, or creditworthiness, of other financial institutions, including any resulting disruption within the financial markets, increased expenses, including Federal Deposit Insurance Corporation insurance assessments, or adverse impact on our stock price, deposits or our ability to borrow or raise capital;
the impact of negative public opinion regarding Valley or banks in general that damages our reputation and adversely impacts business and revenues;
changes in the statutes, regulations, policies, or enforcement priorities of the federal bank regulatory agencies;
the loss of or decrease in lower-cost funding sources within our deposit base;
damage verdicts, settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent, trademark or other intellectual property infringement, misappropriation or other violation, employment related claims, and other matters;
a prolonged downturn and contraction in the economy, as well as an unexpected decline in commercial real estate values collateralizing a significant portion of our loan portfolio;
higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations, and case law;
the inability to grow customer deposits to keep pace with the level of loan growth;
a material change in our allowance for credit losses due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;
the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;
changes in our business, strategy, market conditions or other factors that may negatively impact the estimated fair value of our goodwill and other intangible assets and result in future impairment charges;
greater than expected technology-related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
increased competitive challenges, including our ability to stay current with rapid technological changes in the financial services industry;
cyberattacks, ransomware attacks, computer viruses, malware or other cybersecurity incidents that may breach the security of our websites or other systems or networks to obtain unauthorized access to personal, confidential, proprietary or sensitive information, destroy data, disable or degrade service, or sabotage our systems or networks, and the increasing sophistication of such attacks;
results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank, the Consumer Financial Protection Bureau and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
application of the OCC heightened regulatory standards for certain large insured national banks, and the expenses we will incur to develop policies, programs, and systems that comply with the enhanced standards applicable to us;
our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements, or a decision to increase capital by retaining more earnings;
unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, pandemics or other public health crises, acts of terrorism or other external events;
our ability to successfully execute our business plan and strategic initiatives; and
unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, risk mitigation strategies, changes in regulatory lending guidance or other factors.

A detailed discussion of factors that could affect our results is included in our SEC filings, including Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024.

We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

-Tables to Follow-

VALLEY NATIONAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS
SELECTED FINANCIAL DATA
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
($ in thousands, except for share data and stock price)		2025			2025			2024			2025			2024
FINANCIAL DATA:
Net interest income – FTE ⁽¹⁾	$	433,675		$	421,378		$	402,984		$	855,052		$	797,831
Net interest income	$	432,408		$	420,105		$	401,685		$	852,513		$	795,233
Non-interest income		62,604			58,294			51,213			120,898			112,628
Total revenue		495,012			478,399			452,898			973,411			907,861
Non-interest expense		284,122			276,618			277,497			560,740			557,807
Pre-provision net revenue		210,890			201,781			175,401			412,671			350,054
Provision for credit losses		37,799			62,661			82,070			100,460			127,270
Income tax expense		39,924			33,062			22,907			72,986			56,080
Net income		133,167			106,058			70,424			239,225			166,704
Dividends on preferred stock		6,948			6,955			4,108			13,903			8,227
Net income available to common shareholders	$	126,219		$	99,103		$	66,316		$	225,322		$	158,477
Weighted average number of common shares outstanding:
Basic		560,336,610			559,613,272			509,141,252			559,976,939			508,740,986
Diluted		562,312,330			563,305,525			510,338,502			563,431,390			510,437,959
Per common share data:
Basic earnings	$	0.23		$	0.18		$	0.13		$	0.40		$	0.31
Diluted earnings		0.22			0.18			0.13			0.40			0.31
Cash dividends declared		0.11			0.11			0.11			0.22			0.22
Closing stock price – high		9.20			10.42			8.02			10.42			10.80
Closing stock price – low		7.87			8.56			6.52			7.87			6.52
FINANCIAL RATIOS:
Net interest margin		3.01	%		2.95	%		2.83	%		2.98	%		2.81	%
Net interest margin – FTE ⁽¹⁾		3.01			2.96			2.84			2.99			2.81
Annualized return on average assets		0.86			0.69			0.46			0.77			0.54
Annualized return on avg. shareholders’ equity		7.08			5.69			4.17			6.39			4.95
NON-GAAP FINANCIAL DATA AND RATIOS: ⁽²⁾
Basic earnings per share, as adjusted	$	0.23		$	0.18		$	0.13		$	0.40		$	0.32
Diluted earnings per share, as adjusted		0.23			0.18			0.13			0.40			0.32
Annualized return on average assets, as adjusted		0.87	%		0.69	%		0.47	%		0.78	%		0.56	%
Annualized return on average shareholders’ equity, as adjusted		7.15			5.69			4.24			6.42			5.08
Annualized return on average tangible shareholders’ equity		9.62			7.76			5.95			8.70			7.07
Annualized return on average tangible shareholders’ equity, as adjusted		9.71			7.76			6.05			8.74			7.25
Efficiency ratio		55.20			55.87			59.62			55.53			59.36

AVERAGE BALANCE SHEET ITEMS:
Assets	$	62,106,945		$	61,502,768		$	61,518,639		$	61,806,614		$	61,387,754
Interest earning assets		57,553,624			56,891,691			56,772,950			57,224,486			56,695,874
Loans		49,032,637			48,654,921			50,020,901			48,844,823			50,133,746
Interest bearing liabilities		41,913,735			41,230,709			41,576,344			41,574,732			41,566,466
Deposits		49,907,124			49,139,303			49,383,209			49,525,957			48,979,591
Shareholders’ equity		7,524,231			7,458,177			6,753,981			7,491,395			6,739,838

VALLEY NATIONAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS
	As Of
BALANCE SHEET ITEMS:	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands)		2025			2025			2024			2024			2024
Assets	$	62,705,358		$	61,865,655		$	62,491,691		$	62,092,332		$	62,058,974
Total loans		49,391,420			48,657,128			48,799,711			49,355,319			50,311,702
Deposits		50,725,284			49,965,844			50,075,857			50,395,966			50,112,177
Shareholders’ equity		7,575,421			7,499,897			7,435,127			6,972,380			6,737,737

LOANS:
(In thousands)
Commercial and industrial	$	10,870,036		$	10,150,205		$	9,931,400		$	9,799,287		$	9,479,147
Commercial real estate:
Non-owner occupied		11,747,491			11,945,222			12,344,355			12,647,649			13,710,015
Multifamily		8,434,173			8,420,385			8,299,250			8,612,936			8,976,264
Owner occupied		5,789,397			5,722,014			5,886,620			5,654,147			5,536,844
Construction		2,854,859			3,026,935			3,114,733			3,487,464			3,545,723
Total commercial real estate		28,825,920			29,114,556			29,644,958			30,402,196			31,768,846
Residential mortgage		5,709,971			5,636,407			5,632,516			5,684,079			5,627,113
Consumer:
Home equity		634,553			602,161			604,433			581,181			566,467
Automobile		2,178,841			2,041,227			1,901,065			1,823,738			1,762,852
Other consumer		1,172,099			1,112,572			1,085,339			1,064,838			1,107,277
Total consumer loans		3,985,493			3,755,960			3,590,837			3,469,757			3,436,596
Total loans	$	49,391,420		$	48,657,128		$	48,799,711		$	49,355,319		$	50,311,702

CAPITAL RATIOS:
Book value per common share	$	12.89		$	12.76		$	12.67		$	13.00		$	12.82
Tangible book value per common share ⁽²⁾		9.35			9.21			9.10			9.06			8.87
Tangible common equity to tangible assets ⁽²⁾		8.63	%		8.61	%		8.40	%		7.68	%		7.52	%
Tier 1 leverage capital		9.49			9.41			9.16			8.40			8.19
Common equity tier 1 capital		10.85			10.80			10.82			9.57			9.55
Tier 1 risk-based capital		11.57			11.53			11.55			10.29			9.98
Total risk-based capital		13.67			13.91			13.87			12.56			12.17

VALLEY NATIONAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS
	Three Months Ended									Six Months Ended
ALLOWANCE FOR CREDIT LOSSES:	June 30,			March 31,			June 30,			June 30,
($ in thousands)		2025			2025			2024			2025			2024
Allowance for credit losses for loans
Beginning balance – Allowance for credit losses for loans	$	594,054		$	573,328		$	487,269		$	573,328		$	465,550
Loans charged-off:
Commercial and industrial		(25,189	)		(28,456	)		(14,721	)		(53,645	)		(29,014	)
Commercial real estate		(14,623	)		(12,260	)		(22,144	)		(26,883	)		(23,348	)
Construction		—			(1,163	)		(212	)		(1,163	)		(7,806	)
Total consumer		(2,259	)		(2,140	)		(1,262	)		(4,399	)		(3,071	)
Total loans charged-off		(42,071	)		(44,019	)		(38,339	)		(86,090	)		(63,239	)
Charged-off loans recovered:
Commercial and industrial		2,789			810			742			3,599			1,424
Commercial real estate		188			249			150			437			391
Construction		455			—			—			455			—
Residential mortgage		37			168			5			205			30
Total consumer		773			843			603			1,616			1,000
Total loans recovered		4,242			2,070			1,500			6,312			2,845
Total net charge-offs		(37,829	)		(41,949	)		(36,839	)		(79,778	)		(60,394	)
Provision for credit losses for loans		37,795			62,675			82,111			100,470			127,385
Ending balance	$	594,020		$	594,054		$	532,541		$	594,020		$	532,541
Components of allowance for credit losses for loans:
Allowance for loan losses	$	579,500		$	578,200		$	519,310		$	579,500		$	519,310
Allowance for unfunded credit commitments		14,520			15,854			13,231			14,520			13,231
Allowance for credit losses for loans	$	594,020		$	594,054		$	532,541		$	594,020		$	532,541
Components of provision for credit losses for loans:
Provision for credit losses for loans	$	39,129		$	61,299		$	86,901		$	100,428		$	133,624
(Credit) provision for unfunded credit commitments		(1,334	)		1,376			(4,790	)		42			(6,239	)
Total provision for credit losses for loans	$	37,795		$	62,675		$	82,111		$	100,470		$	127,385
Annualized ratio of total net charge-offs to total average loans		0.31	%		0.34	%		0.29	%		0.33	%		0.24	%
Allowance for credit losses for loans as a % of total loans		1.20	%		1.22	%		1.06	%		1.20	%		1.06	%

VALLEY NATIONAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS
	As Of
ASSET QUALITY:	June 30,			March 31,			December 31,			September 30,			June 30,
($ in thousands)		2025			2025			2024			2024			2024
Accruing past due loans:
30 to 59 days past due:
Commercial and industrial	$	10,451		$	3,609		$	2,389		$	4,537		$	5,086
Commercial real estate		42,884			170			20,902			76,370			1,879
Construction		35,000			—			—			—			—
Residential mortgage		21,744			16,747			21,295			19,549			17,389
Total consumer		12,878			12,887			12,552			14,672			21,639
Total 30 to 59 days past due		122,957			33,413			57,138			115,128			45,993
60 to 89 days past due:
Commercial and industrial		1,095			420			1,007			1,238			1,621
Commercial real estate		60,601			—			24,903			43,926			—
Residential mortgage		7,627			7,700			5,773			6,892			6,632
Total consumer		4,001			2,408			4,484			2,732			3,671
Total 60 to 89 days past due		73,324			10,528			36,167			54,788			11,924
90 or more days past due:
Commercial and industrial		—			—			1,307			1,786			2,739
Commercial real estate		—			—			—			—			4,242
Construction		—			—			—			—			3,990
Residential mortgage		2,062			6,892			3,533			1,931			2,609
Total consumer		859			864			1,049			1,063			898
Total 90 or more days past due		2,921			7,756			5,889			4,780			14,478
Total accruing past due loans	$	199,202		$	51,697		$	99,194		$	174,696		$	72,395
Non-accrual loans:
Commercial and industrial	$	90,973		$	110,146		$	136,675		$	120,575		$	102,942
Commercial real estate		193,604			172,011			157,231			113,752			123,011
Construction		24,068			24,275			24,591			24,657			45,380
Residential mortgage		41,099			35,393			36,786			33,075			28,322
Total consumer		4,615			4,626			4,215			4,260			3,624
Total non-accrual loans		354,359			346,451			359,498			296,319			303,279
Other real estate owned (OREO)		4,783			7,714			12,150			7,172			8,059
Other repossessed assets		1,642			2,054			1,681			1,611			1,607
Total non-performing assets	$	360,784		$	356,219		$	373,329		$	305,102		$	312,945
Total non-accrual loans as a % of loans		0.72	%		0.71	%		0.74	%		0.60	%		0.60	%
Total accruing past due and non-accrual loans as a % of loans		1.12	%		0.82	%		0.94	%		0.95	%		0.75	%
Allowance for losses on loans as a % of non-accrual loans		163.53	%		166.89	%		155.45	%		185.05	%		171.23	%

NOTES TO SELECTED FINANCIAL DATA

(1	)	Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.
(2	)	Non-GAAP Reconciliations. This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of Valley’s performance. The Company believes that the non-GAAP financial measures provide useful supplemental information to both management and investors in understanding Valley’s underlying operational performance, business and performance trends, and may facilitate comparisons of our current and prior performance with the performance of others in the financial services industry. Management utilizes these measures for internal planning, forecasting and analysis purposes. Management believes that Valley’s presentation and discussion of this supplemental information, together with the accompanying reconciliations to the GAAP financial measures, also allows investors to view performance in a manner similar to management. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies.

Non-GAAP Reconciliations to GAAP Financial Measures
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
($ in thousands, except for share data)		2025			2025			2024			2025			2024
Adjusted net income available to common shareholders (non-GAAP):
Net income, as reported (GAAP)	$	133,167		$	106,058		$	70,424		$	239,225		$	166,704
Add: Loss on extinguishment of debt		922			—			—			922			—
Add: FDIC special assessment ^(a)		—			—			1,363			—			8,757
Add: Losses on available for sale and held to maturity debt securities, net ^(b)		—			11			4			11			11
Add: Restructuring charge ^(c)		800			—			334			800			954
Less: Gain on sale of commercial premium finance lending division ^(d)		—			—			—			—			(3,629	)
Total non-GAAP adjustments to net income		1,722			11			1,701			1,733			6,093
Income tax adjustments related to non-GAAP adjustments ^(e)		(474	)		(3	)		(482	)		(477	)		(1,706	)
Net income, as adjusted (non-GAAP)	$	134,415		$	106,066		$	71,643		$	240,481		$	171,091
Dividends on preferred stock		6,948			6,955			4,108			13,903			8,227
Net income available to common shareholders, as adjusted (non-GAAP)	$	127,467		$	99,111		$	67,535		$	226,578		$	162,864
__________
(a) Included in the FDIC insurance assessment.
(b) Included in gains on securities transactions, net.
(c) Represents severance expense related to workforce reductions within salary and employee benefits expense.
(d) Included in other income within non-interest income.
(e) Calculated using the appropriate blended statutory tax rate for the applicable period.

Adjusted per common share data (non-GAAP):
Net income available to common shareholders, as adjusted (non-GAAP)	$	127,467		$	99,111		$	67,535		$	226,578		$	162,864
Average number of shares outstanding		560,336,610			559,613,272			509,141,252			559,976,939			508,740,986
Basic earnings, as adjusted (non-GAAP)	$	0.23		$	0.18		$	0.13		$	0.40		$	0.32
Average number of diluted shares outstanding		562,312,330			563,305,525			510,338,502			563,431,390			510,437,959
Diluted earnings, as adjusted (non-GAAP)	$	0.23		$	0.18		$	0.13		$	0.40		$	0.32
Adjusted annualized return on average tangible shareholders’ equity (non-GAAP):
Net income, as adjusted (non-GAAP)	$	134,415		$	106,066		$	71,643		$	240,481		$	171,091
Average shareholders’ equity	$	7,524,231		$	7,458,177		$	6,753,981		$	7,491,395		$	6,739,838
Less: Average goodwill and other intangible assets		1,987,381			1,994,061			2,016,766			1,990,702			2,020,883
Average tangible shareholders’ equity	$	5,536,850		$	5,464,116		$	4,737,215		$	5,500,693		$	4,718,955
Annualized return on average tangible shareholders’ equity, as adjusted (non-GAAP)		9.71	%		7.76	%		6.05	%		8.74	%		7.25	%
Adjusted annualized return on average assets (non-GAAP):
Net income, as adjusted (non-GAAP)	$	134,415		$	106,066		$	71,643		$	240,481		$	171,091
Average assets	$	62,106,945		$	61,502,768		$	61,518,639		$	61,806,614		$	61,387,754
Annualized return on average assets, as adjusted (non-GAAP)		0.87	%		0.69	%		0.47	%		0.78	%		0.56	%

Non-GAAP Reconciliations to GAAP Financial Measures (Continued)
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
($ in thousands, except for share data)		2025			2025			2024			2025			2024
Adjusted annualized return on average shareholders’ equity (non-GAAP):
Net income, as adjusted (non-GAAP)	$	134,415		$	106,066		$	71,643		$	240,481		$	171,091
Average shareholders’ equity	$	7,524,231		$	7,458,177		$	6,753,981		$	7,491,395		$	6,739,838
Annualized return on average shareholders’ equity, as adjusted (non-GAAP)		7.15	%		5.69	%		4.24	%		6.42	%		5.08	%
Annualized return on average tangible shareholders’ equity (non-GAAP):
Net income, as reported (GAAP)	$	133,167		$	106,058		$	70,424		$	239,225		$	166,704
Average shareholders’ equity	$	7,524,231		$	7,458,177		$	6,753,981		$	7,491,395		$	6,739,838
Less: Average goodwill and other intangible assets		1,987,381			1,994,061			2,016,766			1,990,702			2,020,883
Average tangible shareholders’ equity	$	5,536,850		$	5,464,116		$	4,737,215		$	5,500,693		$	4,718,955
Annualized return on average tangible shareholders’ equity (non-GAAP)		9.62	%		7.76	%		5.95	%		8.70	%		7.07	%

Efficiency ratio (non-GAAP):
Non-interest expense, as reported (GAAP)	$	284,122		$	276,618		$	277,497		$	560,740		$	557,807
Less: Loss on extinguishment of debt (pre-tax)		922			—			—			922			—
Less: FDIC special assessment (pre-tax)		—			—			1,363			—			8,757
Less: Restructuring charge (pre-tax)		800			—			334			800			954
Less: Amortization of tax credit investments (pre-tax)		9,134			9,320			5,791			18,454			11,353
Non-interest expense, as adjusted (non-GAAP)	$	273,266		$	267,298		$	270,009		$	540,564		$	536,743
Net interest income, as reported (GAAP)		432,408			420,105			401,685			852,513			795,233
Non-interest income, as reported (GAAP)		62,604			58,294			51,213			120,898			112,628
Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax)		—			11			4			11			11
Less: Gain on sale of premium finance division (pre-tax)		—			—			—			—			(3,629	)
Non-interest income, as adjusted (non-GAAP)	$	62,604		$	58,305		$	51,217		$	120,909		$	109,010
Gross operating income, as adjusted (non-GAAP)	$	495,012		$	478,410		$	452,902		$	973,422		$	904,243
Efficiency ratio (non-GAAP)		55.20	%		55.87	%		59.62	%		55.53	%		59.36	%

	As of
	June 30,			March 31,			December 31,			September 30,			June 30,
($ in thousands, except for share data)		2025			2025			2024			2024			2024
Tangible book value per common share (non-GAAP):
Common shares outstanding		560,281,821			560,028,101			558,786,093			509,252,936			509,205,014
Shareholders’ equity (GAAP)	$	7,575,421		$	7,499,897		$	7,435,127		$	6,972,380		$	6,737,737
Less: Preferred stock		354,345			354,345			354,345			354,345			209,691
Less: Goodwill and other intangible assets		1,983,515			1,990,276			1,997,597			2,004,414			2,012,580
Tangible common shareholders’ equity (non-GAAP)	$	5,237,561		$	5,155,276		$	5,083,185		$	4,613,621		$	4,515,466
Tangible book value per common share (non-GAAP)	$	9.35		$	9.21		$	9.10		$	9.06		$	8.87
Tangible common equity to tangible assets (non-GAAP):
Tangible common shareholders’ equity (non-GAAP)	$	5,237,561		$	5,155,276		$	5,083,185		$	4,613,621		$	4,515,466
Total assets (GAAP)	$	62,705,358		$	61,865,655		$	62,491,691		$	62,092,332		$	62,058,974
Less: Goodwill and other intangible assets		1,983,515			1,990,276			1,997,597			2,004,414			2,012,580
Tangible assets (non-GAAP)	$	60,721,843		$	59,875,379		$	60,494,094		$	60,087,918		$	60,046,394
Tangible common equity to tangible assets (non-GAAP)		8.63	%		8.61	%		8.40	%		7.68	%		7.52	%

VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (in thousands, except for share data)
	June 30,			December 31,
		2025			2024
	(Unaudited)
Assets
Cash and due from banks	$	440,870		$	411,412
Interest bearing deposits with banks		745,547			1,478,713
Investment securities:
Equity securities		77,408			71,513
Available for sale debt securities		3,896,205			3,369,724
Held to maturity debt securities (net of allowance for credit losses of $637 at June 30, 2025 and $647 at December 31, 2024)		3,530,924			3,531,573
Total investment securities		7,504,537			6,972,810
Loans held for sale (includes fair value of $9,146 at June 30, 2025 and $16,931 at December 31, 2024 for loans originated for sale)		28,096			25,681
Loans		49,391,420			48,799,711
Less: Allowance for loan losses		(579,500	)		(558,850	)
Net loans		48,811,920			48,240,861
Premises and equipment, net		337,371			350,796
Lease right of use assets		332,324			328,475
Bank owned life insurance		735,026			731,574
Accrued interest receivable		238,278			239,941
Goodwill		1,868,936			1,868,936
Other intangible assets, net		114,579			128,661
Other assets		1,547,874			1,713,831
Total Assets	$	62,705,358		$	62,491,691
Liabilities
Deposits:
Non-interest bearing	$	11,746,770		$	11,428,674
Interest bearing:
Savings, NOW and money market		26,091,633			26,304,639
Time		12,886,881			12,342,544
Total deposits		50,725,284			50,075,857
Short-term borrowings		162,244			72,718
Long-term borrowings		2,903,091			3,174,155
Junior subordinated debentures issued to capital trusts		57,629			57,455
Lease liabilities		392,633			388,303
Accrued expenses and other liabilities		889,056			1,288,076
Total Liabilities		55,129,937			55,056,564
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:
Series A (4,600,000 shares issued at June 30, 2025 and December 31, 2024)		111,590			111,590
Series B (4,000,000 shares issued at June 30, 2025 and December 31, 2024)		98,101			98,101
Series C (6,000,000 shares issued at June 30, 2025 and December 31, 2024)		144,654			144,654
Common stock (no par value, authorized 650,000,000 shares; issued 560,522,946 shares at June 30, 2025 and 558,786,093 shares at December 31, 2024)		196,606			195,998
Surplus		5,451,543			5,442,070
Retained earnings		1,694,903			1,598,048
Accumulated other comprehensive loss		(119,889	)		(155,334	)
Treasury stock, at cost (241,125 common shares at June 30, 2025)		(2,087	)		—
Total Shareholders’ Equity		7,575,421			7,435,127
Total Liabilities and Shareholders’ Equity	$	62,705,358		$	62,491,691

VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (in thousands, except for share data)
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
		2025			2025			2024			2025			2024
Interest Income
Interest and fees on loans	$	720,282		$	703,609		$	770,964		$	1,423,891		$	1,542,517
Interest and dividends on investment securities:
Taxable		67,164			63,898			40,460			131,062			76,257
Tax-exempt		4,681			4,702			4,799			9,383			9,595
Dividends		5,528			5,664			6,341			11,192			13,169
Interest on federal funds sold and other short-term investments		7,357			6,879			10,902			14,236			20,584
Total interest income		805,012			784,752			833,466			1,589,764			1,662,122
Interest Expense
Interest on deposits:
Savings, NOW and money market		203,390			200,221			231,597			403,611			464,103
Time		129,324			125,069			160,442			254,393			311,507
Interest on short-term borrowings		1,736			2,946			691			4,682			21,303
Interest on long-term borrowings and junior subordinated debentures		38,154			36,411			39,051			74,565			69,976
Total interest expense		372,604			364,647			431,781			737,251			866,889
Net Interest Income		432,408			420,105			401,685			852,513			795,233
Provision (credit) for credit losses for available for sale and held to maturity securities		4			(14	)		(41	)		(10	)		(115	)
Provision for credit losses for loans		37,795			62,675			82,111			100,470			127,385
Net Interest Income After Provision for Credit Losses		394,609			357,444			319,615			752,053			667,963
Non-Interest Income
Wealth management and trust fees		14,056			15,031			13,136			29,087			31,066
Insurance commissions		3,430			3,402			3,958			6,832			6,209
Capital markets		9,767			6,940			7,779			16,707			13,449
Service charges on deposit accounts		14,705			12,726			11,212			27,431			22,461
(Losses) gains on securities transactions, net		(1	)		46			3			45			52
Fees from loan servicing		3,671			3,215			2,691			6,886			5,879
Gains on sales of loans, net		2,025			2,197			884			4,222			2,502
Bank owned life insurance		6,019			4,777			4,545			10,796			7,780
Other		8,932			9,960			7,005			18,892			23,230
Total non-interest income		62,604			58,294			51,213			120,898			112,628
Non-Interest Expense
Salary and employee benefits expense		145,422			142,618			140,815			288,040			282,646
Net occupancy expense		25,483			25,888			24,252			51,371			48,575
Technology, furniture and equipment expense		30,667			29,896			35,203			60,563			70,665
FDIC insurance assessment		12,192			12,867			14,446			25,059			32,682
Amortization of other intangible assets		7,427			8,019			8,568			15,446			17,980
Professional and legal fees		19,970			15,670			17,938			35,640			34,403
Loss on extinguishment of debt		922			—			—			922			—
Amortization of tax credit investments		9,134			9,320			5,791			18,454			11,353
Other		32,905			32,340			30,484			65,245			59,503
Total non-interest expense		284,122			276,618			277,497			560,740			557,807
Income Before Income Taxes		173,091			139,120			93,331			312,211			222,784
Income tax expense		39,924			33,062			22,907			72,986			56,080
Net Income		133,167			106,058			70,424			239,225			166,704
Dividends on preferred stock		6,948			6,955			4,108			13,903			8,227
Net Income Available to Common Shareholders	$	126,219		$	99,103		$	66,316		$	225,322		$	158,477

VALLEY NATIONAL BANCORP Quarterly Analysis of Average Assets, Liabilities and Shareholders’ Equity and Net Interest Income on a Tax Equivalent Basis
	Three Months Ended
	June 30, 2025							March 31, 2025							June 30, 2024
	Average					Avg.		Average					Avg.		Average					Avg.
($ in thousands)	Balance		Interest			Rate		Balance		Interest			Rate		Balance		Interest			Rate
Assets
Interest earning assets:
Loans ⁽¹⁾⁽²⁾	$	49,032,637	$	720,305		5.88	%	$	48,654,921	$	703,632		5.78	%	$	50,020,901	$	770,987		6.17	%
Taxable investments ⁽³⁾		7,350,792		72,692		3.96			7,100,958		69,562		3.92			5,379,101		46,801		3.48
Tax-exempt investments ⁽¹⁾⁽³⁾		544,302		5,925		4.35			552,291		5,952		4.31			575,272		6,075		4.22
Interest bearing deposits with banks		625,893		7,357		4.70			583,521		6,879		4.72			797,676		10,902		5.47
Total interest earning assets		57,553,624		806,279		5.60			56,891,691		786,025		5.53			56,772,950		834,765		5.88
Other assets		4,553,321							4,611,077							4,745,689
Total assets	$	62,106,945						$	61,502,768						$	61,518,639
Liabilities and shareholders’ equity
Interest bearing liabilities:
Savings, NOW and money market deposits	$	26,451,349	$	203,390		3.08	%	$	26,345,983	$	200,221		3.04	%	$	24,848,266	$	231,597		3.73	%
Time deposits		12,119,461		129,324		4.27			11,570,758		125,069		4.32			13,311,381		160,442		4.82
Short-term borrowings		196,491		1,736		3.53			307,637		2,946		3.83			97,502		691		2.83
Long-term borrowings ⁽⁴⁾		3,146,434		38,154		4.85			3,006,331		36,411		4.84			3,319,195		39,051		4.71
Total interest bearing liabilities		41,913,735		372,604		3.56			41,230,709		364,647		3.54			41,576,344		431,781		4.15
Non-interest bearing deposits		11,336,314							11,222,562							11,223,562
Other liabilities		1,332,665							1,591,320							1,964,752
Shareholders’ equity		7,524,231							7,458,177							6,753,981
Total liabilities and shareholders’ equity	$	62,106,945						$	61,502,768						$	61,518,639

Net interest income/interest rate spread ⁽⁵⁾			$	433,675		2.04	%			$	421,378		1.99	%			$	402,984		1.73	%
Tax equivalent adjustment				(1,267	)						(1,273	)						(1,299	)
Net interest income, as reported			$	432,408						$	420,105						$	401,685
Net interest margin ⁽⁶⁾						3.01	%						2.95	%						2.83	%
Tax equivalent effect						0.00							0.01							0.01
Net interest margin on a fully tax equivalent basis ⁽⁶⁾						3.01	%						2.96	%						2.84	%

____________

(1) Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.
(2) Loans are stated net of unearned income and include non-accrual loans.
(3) The yield for securities that are classified as available for sale is based on the average historical amortized cost.
(4) Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of financial condition.
(5) Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
(6) Net interest income as a percentage of total average interest earning assets.

SHAREHOLDER RELATIONS
Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 70 Speedwell Avenue, Morristown, New Jersey, 07960, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com.

Contact:		Travis Lan
		Senior Executive Vice President and
		Chief Financial Officer
		973-686-5007

The MIL Network –

July 24, 2025

MIL-OSI: Amalgamated Financial Corp. Reports Second Quarter 2025 Financial Results; Solid Deposit and Loan Growth; Strong Margin at 3.55%

Source: GlobeNewswire (MIL-OSI)

Common Equity Tier 1 Capital Ratio of 14.13% | Tangible Book Value per Share of $24.33

NEW YORK, July 24, 2025 (GLOBE NEWSWIRE) — Amalgamated Financial Corp. (the “Company” or “Amalgamated”) (Nasdaq: AMAL), the holding company for Amalgamated Bank (the “Bank”), today announced financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Highlights (on a linked quarter basis)

Net income of $26.0 million, or $0.84 per diluted share, compared to $25.0 million, or $0.81 per diluted share.
Core net income¹ of $27.0 million, or $0.88 per diluted share, compared to $27.1 million, or $0.88 per diluted share.

Deposits and Liquidity

On-balance sheet deposits increased $321.2 million, or 4.3%, to $7.7 billion.
Excluding $112.3 million of temporary pension funding deposits received on the last day of the quarter and withdrawn on the following day, total deposits increased $208.9 million, or 2.8%, to $7.6 billion.
Off-balance sheet deposits were $41.4 million at the end of the quarter.
Political deposits increased $136.5 million, or 13%, to $1.2 billion, which includes both on and off-balance sheet deposits.
Average cost of deposits, increased 3 basis points to 162 basis points, where non-interest-bearing deposits comprised 36% of total deposits.

Assets and Margin

Net interest margin remained unchanged at 3.55%.
Net interest income grew $2.3 million, or 3.3%, to $72.9 million.
Net loans receivable increased $35.5 million, or 0.8%, to $4.7 billion.
Net loans in growth mode (commercial and industrial, commercial real estate, and multifamily) increased $60.8 million or 2.1%.
Total PACE assessments grew $16.3 million, or 1.4%, to $1.2 billion.
The multifamily and commercial real estate loan portfolios totaled $1.8 billion and had a concentration of 202% to total risk based capital.

Capital and Returns

Tier 1 leverage ratio remained constant at 9.22% and Common Equity Tier 1 ratio was 14.13%.
Tangible common equity¹ ratio decreased 13 basis points to 8.60% due to a larger balance sheet.
Tangible book value per share¹ increased $0.82, or 3.5%, to $24.33, and has increased $7.00, or 40.4% since September 2021.
Core return on average tangible common equity¹ of 14.90% and core return on average assets¹ of 1.28%.

Share Repurchase

Repurchased approximately 327,000 shares, or $9.7 million of common stock, through June 30, 2025, with $30.3 million in remaining capacity under the share repurchase program approved on March 10, 2025.
Approximately 74,000 shares have been repurchased from July 1 through July 22, 2025.


^{1 Definitions are presented under “Non-GAAP Financial Measures”. Reconciliations of non-GAAP financial measures to the most comparable GAAP measure are set forth on the last page of the financial information accompanying this press release and may also be found on the Company’s website, www.amalgamatedbank.com.}

Priscilla Sims Brown, President and Chief Executive Officer, commented, “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.”

Second Quarter Earnings

Net income was $26.0 million, or $0.84 per diluted share, compared to $25.0 million, or $0.81 per diluted share, for the prior quarter. The $1.0 million increase during the quarter was primarily driven by a scheduled $2.6 million increase in non-core income related to solar tax equity investments, a $2.3 million increase in net interest income, and a $1.1 million decrease in non-interest expense. This was partially offset by a $4.3 million increase in provision for credit losses, the effect from a $0.8 million net valuation gain on residential loans sold during the previous quarter, and a $0.4 million increase in losses on sales of securities and other assets compared to the linked quarter.

Core net income¹ was $27.0 million, or $0.88 per diluted share, compared to $27.1 million, or $0.88 per diluted share for the prior quarter. Excluded from core net income for the quarter, pre-tax, was $1.0 million of losses on the sale of securities and other assets, $0.3 million of scheduled accelerated depreciation from solar tax equity investments, $0.1 million of severance costs, and $0.1 million of ICS One-Way Sell fee income. Excluded from core net income for the first quarter of 2025, pre-tax, was $2.9 million of accelerated depreciation from solar tax equity investments, a $0.8 million net valuation gain from residential loans sold during the quarter, and $0.7 million of losses on the sale of securities.

Net interest income was $72.9 million, compared to $70.6 million for the prior quarter. Loan interest income increased $0.9 million and loan yields increased 5 basis points despite a $35.6 million decrease in average loan balances, primarily due to completion of a residential loan pool sale in the prior quarter. In addition, commercial loan originations were offset by paydowns and payoffs on lower-yielding commercial and residential loans. Interest income on securities increased $2.0 million driven by an increase in the average balance of securities of $141.2 million despite a slight decline in securities yields of 4 basis points. Interest expense on total interest-bearing deposits increased $1.7 million driven primarily by an increase in the average balance of total interest-bearing deposits of $201.0 million, while interest-bearing deposits cost remained flat.

Net interest margin was 3.55%, the same as the prior quarter largely due to a higher average balance of interest-bearing deposits as noted above, which resulted in a slightly higher blended cost of funds. This offset the interest income generated by the higher average balance of securities and modestly higher loan yields. Additionally, income from prepayment penalties had a one basis point impact on net interest margin in the current quarter, compared to no impact in the prior quarter.

Provision for credit losses was an expense of $4.9 million, compared to an expense of $0.6 million in the prior quarter. The increase in the second quarter was primarily driven by a $2.3 million increase in reserve for one syndicated commercial and industrial loan as well as the macroeconomic forecasts used in the CECL model, primarily related to the consumer solar loan portfolio, which can be volatile.

Non-interest income was $8.0 million, compared to $6.4 million in the prior quarter. Excluding all non-core income adjustments noted above, core non-interest income¹ was $9.3 million, compared to $9.1 million in the prior quarter. The increase was primarily related to higher commercial banking fees, partially offset by lower income from Trust fees.

Non-interest expense was $40.6 million, a decrease of $1.1 million from the prior quarter. Core non-interest expense¹ was $40.4 million, also a decrease of $1.1 million from the prior quarter. This was mainly driven by a $1.5 million decrease in professional fees, partially offset by a $0.4 million increase in advertising expense.

Provision for income tax expense was $9.5 million, compared to $9.7 million for the prior quarter. The effective tax rate was 26.7%, compared to 28.0% in the prior quarter. The California single-sales factor apportionment law was adopted during the quarter which resulted in an increase in the California state tax rate. A discrete tax benefit was recognized during the current quarter for the remeasurement of deferred tax assets reducing the quarterly effective tax rate. Going forward, the tax rate is expected to be 27.3%. The prior quarter effective tax rate was impacted by discrete tax items related to a city and state tax examination. Adjusted, the current quarter effective tax rate was 27.3% compared to 27.0% for the prior quarter.

Balance Sheet Quarterly Summary

Total assets were $8.6 billion at June 30, 2025, a $336.1 million or a 4% increase compared to $8.3 billion at March 31, 2025. On the last day of the quarter, the balance sheet was impacted by $112.3 million of temporary pension funding deposits that were withdrawn the following day. Adjusted, total assets were $8.5 billion, in line with our target for the quarter. Notable changes within individual balance sheet line items include a $177.6 million increase in securities and a $35.5 million increase in net loans receivable. On the liabilities side, on-balance sheet deposits increased by $321.2 million or $208.9 million when adjusted for the temporary deposits noted above. Off-balance sheet deposits decreased by $173.1 million in the quarter. Equity grew by $18.0 million.

Total net loans receivable at June 30, 2025 were $4.7 billion, an increase of $35.5 million, or 0.8% for the quarter. A balanced increase in loans was primarily driven by a $34.2 million increase in multifamily loans, a $13.5 million increase in commercial and industrial loans, and a $13.1 million increase in commercial real estate loans, all in our identified growth portfolios. This was partially offset by a $11.0 million decrease in consumer solar loans, and a $11.8 million decrease in residential loans, both being non-growth portfolios. During the quarter, criticized or classified loans increased $13.9 million, largely related to the downgrades of four commercial and industrial loans totaling $9.7 million, the downgrade of one multifamily loan totaling $2.8 million, additional downgrades of small business loans totaling $1.0 million, and an increase of $2.1 million in residential and consumer substandard loans. This was partially offset by charge-offs of small business loans totaling $1.1 million, and an upgrade of one $0.1 million small business loan.

Total on-balance sheet deposits at June 30, 2025 were $7.7 billion, an increase of $321.2 million, or 4.3%, during the quarter. Including accounts currently held off-balance sheet, deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $1.2 billion as of June 30, 2025, an increase of $136.5 million during the quarter. Non-interest-bearing deposits represented 38% of average total deposits and 36% of ending total deposits for the quarter, contributing to an average cost of total deposits of 162 basis points. Super-core deposits¹ totaled approximately $4.2 billion, had a weighted average life of 18 years, and comprised 54% of total deposits. Total uninsured deposits were $3.9 billion, comprising 50% of total deposits.

Nonperforming assets totaled $35.2 million, or 0.41% of period-end total assets at June 30, 2025, an increase of $1.3 million, compared with $33.9 million, or 0.41% on a linked quarter basis. The increase in nonperforming assets was primarily driven by a $2.4 million increase in residential non-accrual loans, partially offset by a $0.3 million decrease in commercial and industrial nonaccrual loans, a $0.3 million decrease in consumer solar nonaccrual loans, and a $0.5 million decrease in nonaccrual loans held for sale compared to the prior quarter.

During the quarter, the allowance for credit losses on loans increased $1.3 million to $59.0 million. The ratio of allowance to total loans was 1.25%, an increase of 2 basis points from 1.23% in the first quarter of 2025. This is primarily due to an increase of $2.3 million in reserves for one commercial and industrial loan, along with increases in provision related to the macroeconomic forecasts used in the CECL model. The loan associated with the increased reserve is a commercial and industrial business loan to an originator of consumer loans for renewable energy efficiency improvements. During the quarter, $2.5 million of debtor-in-possession (“DIP”) financing was put in place, a portion of which was advanced and increased our outstanding exposure from $8.3 million to $9.3 million as of June 30, 2025. Additionally, during the third quarter, the remainder of the DIP financing was advanced bringing the total exposure to $10.8 million as of the date of this earnings release. While there remains collateral value, the situation with this loan is fluid and could result in further reserves as the workout progresses.

Capital Quarterly Summary

As of June 30, 2025, the Common Equity Tier 1 Capital ratio was 14.13%, the Total Risk-Based Capital ratio was 16.43%, and the Tier 1 Leverage Capital ratio was 9.22%, compared to 14.27%, 16.61% and 9.22%, respectively, as of March 31, 2025. Stockholders’ equity at June 30, 2025 was $754.0 million, an increase of $18.0 million during the quarter. The increase in stockholders’ equity was primarily driven by $26.0 million of net income for the quarter and a $4.3 million improvement in accumulated other comprehensive loss due to the tax-effected mark-to-market on available for sale securities, offset by $9.7 million in share buybacks and $4.4 million in dividends paid at $0.14 per outstanding share.

Tangible book value per share¹ was $24.33 as of June 30, 2025 compared to $23.51 as of March 31, 2025. Tangible common equity¹ improved to 8.60% of tangible assets, compared to 8.73% as of March 31, 2025.

Conference Call

As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its second quarter 2025 results today, July 24, 2025 at 11:00am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. Second Quarter 2025 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13754662. The telephonic replay will be available until July 31, 2025.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at https://ir.amalgamatedbank.com/. The online replay will remain available for a limited time beginning immediately following the call.

The presentation materials for the call can be accessed on the investor relations section of the Company’s website at https://ir.amalgamatedbank.com/.

About Amalgamated Financial Corp.

Amalgamated Financial Corp. is a Delaware public benefit corporation and a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank. Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. As of June 30, 2025, total assets were $8.6 billion, total net loans were $4.7 billion, and total deposits were $7.7 billion. Additionally, as of June 30, 2025, the trust business held $36.5 billion in assets under custody and $15.6 billion in assets under management.

Non-GAAP Financial Measures

This release (and the accompanying financial information and tables) refer to certain non-GAAP financial measures including, without limitation, “Core operating revenue,” “Core non-interest expense,” “Core non-interest income,” “Core net income,” “Tangible common equity,” “Average tangible common equity,” “Core return on average assets,” “Core return on average tangible common equity,” and “Core efficiency ratio.”

Management utilizes this information to compare operating performance for June 30, 2025 versus certain periods in 2025 and 2024 and to prepare internal projections. The Company believes these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of operating performance. In addition, because intangible assets such as goodwill and other discrete items unrelated to core business, which are excluded, vary extensively from company to company, the Company believe that the presentation of this information allows investors to more easily compare results to those of other companies.

The presentation of non-GAAP financial information, however, is not intended to be considered in isolation or as a substitute for GAAP financial measures. The Company strongly encourage readers to review the GAAP financial measures included in this release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this release with other companies’ non-GAAP financial measures having the same or similar names. Reconciliations of non-GAAP financial disclosures to comparable GAAP measures found in this release are set forth in the final pages of this release and also may be viewed on the Company’s website, amalgamatedbank.com.

Terminology

Certain terms used in this release are defined as follows:

“Core efficiency ratio” is defined as “Core non-interest expense” divided by “Core operating revenue.” The Company believes the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income.

“Core net income” is defined as net income after tax excluding gains and losses on sales of securities, ICS One-Way Sell fee income, changes in fair value on loans held-for-sale, gains on the sale of owned property, costs related to branch closures, restructuring/severance costs, acquisition costs, tax credits and accelerated depreciation on solar equity investments, and taxes on notable pre-tax items. The Company believes the most directly comparable GAAP financial measure is net income.

“Core non-interest expense” is defined as total non-interest expense excluding costs related to branch closures, and restructuring/severance. The Company believes the most directly comparable GAAP financial measure is total non-interest expense.

“Core non-interest income” is defined as total non-interest income excluding gains and losses on sales of securities, ICS One-Way Sell fee income, changes in fair value on loans held-for-sale, gains on the sale of owned property, and tax credits and accelerated depreciation on solar equity investments. The Company believes the most directly comparable GAAP financial measure is non-interest income.

“Core operating revenue” is defined as total net interest income plus “core non-interest income”. The Company believes the most directly comparable GAAP financial measure is the total of net interest income and non-interest income.

“Core return on average assets” is defined as “Core net income” divided by average total assets. The Company believes the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets.

“Core return on average tangible common equity” is defined as “Core net income” divided by average “tangible common equity.” The Company believes the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders’ equity.

“Super-core deposits” are defined as total deposits from commercial and consumer customers, with a relationship length of greater than 5 years. The Company believes the most directly comparable GAAP financial measure is total deposits.

“Tangible assets” are defined as total assets excluding, as applicable, goodwill and core deposit intangibles. The Company believes the most directly comparable GAAP financial measure is total assets.

“Tangible common equity”, and “Tangible book value” are defined as stockholders’ equity excluding, as applicable, minority interests, goodwill and core deposit intangibles. The Company believes that the most directly comparable GAAP financial measure is total stockholders’ equity.

“Traditional securities” is defined as total investment securities excluding PACE assessments. The Company believes the most directly comparable GAAP financial measure is total investment securities.

Forward-Looking Statements

Statements included in this release that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified through the use of forward-looking terminology such as “may,” “will,” “anticipate,” “aspire,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “in the future,” “may” and “intend,” as well as other similar words and expressions of the future. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any or all of which could cause actual results to differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to:

uncertain conditions in the banking industry and in national, regional and local economies in core markets, which may have an adverse impact on business, operations and financial performance;
deterioration in the financial condition of borrowers resulting in significant increases in credit losses and provisions for those losses;
deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors;
changes in deposits, including an increase in uninsured deposits;
ability to maintain sufficient liquidity to meet deposit and debt obligations as they come due, which may require that the Company sell investment securities at a loss, negatively impacting net income, earnings and capital;
unfavorable conditions in the capital markets, which may cause declines in stock price and the value of investments;
negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumer confidence, the financial condition of borrowers and consumer spending habits, which may affect, among other things, the level of non-performing assets, charge-offs and provision expense;
fluctuations or unanticipated changes in the interest rate environment including changes in net interest margin or changes in the yield curve that affect investments, loans or deposits;
the general decline in the real estate and lending markets, particularly in commercial real estate in the Company’s market areas, and the effects of the enactment of or changes to rent-control and other similar regulations on multi-family housing;
potential implementation by the current presidential administration of a regulatory reform agenda that is significantly different from that of the prior presidential administration, impacting the rule making, supervision, examination and enforcement of the banking regulation agencies;
changes in U.S. trade policies and other global political factors beyond the Company’s control, including the imposition of tariffs, which raise economic uncertainty, potentially leading to slower growth and a decrease in loan demand;
the outcome of legal or regulatory proceedings that may be instituted against us;
inability to achieve organic loan and deposit growth and the composition of that growth;
composition of the Company’s loan portfolio, including any concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which the Company operates;
inaccuracy of the assumptions and estimates the Company makes and policies that the Company implements in establishing the allowance for credit losses;
changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments;
any matter that would cause the Company to conclude that there was impairment of any asset, including intangible assets;
limitations on the ability to declare and pay dividends;
the impact of competition with other financial institutions, including pricing pressures and the resulting impact on results, including as a result of compression to net interest margin;
increased competition for experienced members of the workforce including executives in the banking industry;
a failure in or breach of operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches;
increased regulatory scrutiny and exposure from the use of “big data” techniques, machine learning, and artificial intelligence;
a downgrade in the Company’s credit rating;
“greenwashing claims” against the Company and environmental, social, and governance (“ESG”) products and increased scrutiny and political opposition to ESG and diversity, equity, and inclusion (“DEI”) practices;
any unanticipated or greater than anticipated adverse conditions (including the possibility of earthquakes, wildfires, and other natural disasters) affecting the markets in which the Company operates;
physical and transitional risks related to climate change as they impact the business and the businesses that the Company finances;
future repurchase of the Company’s shares through the Company’s common stock repurchase program; and
descriptions of assumptions underlying or relating to any of the foregoing.

Additional factors which could affect the forward-looking statements can be found in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC’s website at https://www.sec.gov/. The Company disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:
Jamie Lillis
Solebury Strategic Communications
shareholderrelations@amalgamatedbank.com
800-895-4172

Consolidated Statements of Income (unaudited)

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
($ in thousands)	2025			2025			2024			2025			2024
INTEREST AND DIVIDEND INCOME
Loans	$	58,723		$	57,843		$	51,293		$	116,566		$	103,245
Securities		43,737			41,653			44,978			85,390			87,368
Interest-bearing deposits in banks		1,639			1,194			2,690			2,833			5,282
Total interest and dividend income		104,099			100,690			98,961			204,789			195,895
INTEREST EXPENSE
Deposits		30,593			28,917			28,882			59,510			54,773
Borrowed funds		597			1,196			887			1,793			3,893
Total interest expense		31,190			30,113			29,769			61,303			58,666
NET INTEREST INCOME		72,909			70,577			69,192			143,486			137,229
Provision for credit losses		4,890			596			3,161			5,486			4,749
Net interest income after provision for credit losses		68,019			69,981			66,031			138,000			132,480
NON-INTEREST INCOME
Trust Department fees		3,879			4,191			3,657			8,069			7,511
Service charges on deposit accounts		3,873			3,438			8,614			7,311			14,750
Bank-owned life insurance income		796			626			615			1,422			1,224
Losses on sale of securities and other assets		(1,041	)		(680	)		(2,691	)		(1,721	)		(5,465	)
Gain (loss) on sale of loans and changes in fair value on loans held- for-sale, net		18			832			69			850			116
Equity method investments income (loss)		51			(2,508	)		(1,551	)		(2,458	)		521
Other income		449			507			545			957			830
Total non-interest income		8,025			6,406			9,258			14,430			19,487
NON-INTEREST EXPENSE
Compensation and employee benefits		23,240			23,314			23,045			46,554			45,318
Occupancy and depreciation		3,476			3,293			3,379			6,768			6,283
Professional fees		3,283			4,739			2,332			8,022			4,708
Technology		5,485			5,619			4,786			11,103			9,415
Office maintenance and depreciation		570			629			580			1,199			1,243
Amortization of intangible assets		144			144			182			287			365
Advertising and promotion		412			51			1,175			463			2,394
Federal deposit insurance premiums		900			900			1,050			1,800			2,100
Other expense		3,074			2,961			2,983			6,038			5,838
Total non-interest expense		40,584			41,650			39,512			82,234			77,664
Income before income taxes		35,460			34,737			35,777			70,196			74,303
Income tax expense		9,471			9,709			9,024			19,179			20,301
Net income	$	25,989		$	25,028		$	26,753		$	51,017		$	54,002
Earnings per common share – basic	$	0.85		$	0.82		$	0.88		$	1.67		$	1.77
Earnings per common share – diluted	$	0.84		$	0.81		$	0.87		$	1.65		$	1.75

Consolidated Statements of Financial Condition

($ in thousands)	June 30, 2025			March 31, 2025			December 31, 2024
Assets	(unaudited)			(unaudited)
Cash and due from banks	$	4,049		$	4,196		$	4,042
Interest-bearing deposits in banks		167,017			61,518			56,707
Total cash and cash equivalents		171,066			65,714			60,749
Securities:
Available for sale, at fair value
Traditional securities		1,713,077			1,546,127			1,477,047
Property Assessed Clean Energy (“PACE”) assessments		178,247			161,147			152,011
		1,891,324			1,707,274			1,629,058
Held-to-maturity, at amortized cost:
Traditional securities, net of allowance for credit losses of $47, $47, and $49, respectively		529,418			535,065			542,246
PACE assessments, net of allowance for credit losses of $657, $654, and $655, respectively		1,037,220			1,038,052			1,043,959
		1,566,638			1,573,117			1,586,205

Loans held for sale		2,545			3,667			37,593
Loans receivable, net of deferred loan origination fees and costs		4,714,344			4,677,506			4,672,924
Allowance for credit losses		(58,998	)		(57,676	)		(60,086	)
Loans receivable, net		4,655,346			4,619,830			4,612,838

Resell agreements		57,040			41,651			23,741
Federal Home Loan Bank of New York (“FHLBNY”) stock, at cost		5,277			4,679			15,693
Accrued interest receivable		55,509			55,092			61,172
Premises and equipment, net		8,823			7,366			6,386
Bank-owned life insurance		108,465			108,652			108,026
Right-of-use lease asset		11,379			12,477			14,231
Deferred tax asset, net		33,685			33,799			42,437
Goodwill		12,936			12,936			12,936
Intangible assets, net		1,200			1,343			1,487
Equity method investments		5,110			5,639			8,482
Other assets		34,995			31,991			35,858
Total assets	$	8,621,338		$	8,285,227		$	8,256,892
Liabilities
Deposits		7,733,272			7,412,072			7,180,605
Borrowings		75,457			69,676			314,409
Operating leases		15,395			17,190			19,734
Other liabilities		43,230			50,293			34,490
Total liabilities		7,867,354			7,549,231			7,549,238
Stockholders’ equity
Common stock, par value $0.01 per share		310			309			308
Additional paid-in capital		290,256			288,539			288,656
Retained earnings		522,405			500,783			480,144
Accumulated other comprehensive loss, net of income taxes		(42,982	)		(47,308	)		(58,637	)
Treasury stock, at cost		(16,005	)		(6,327	)		(2,817	)
Total stockholders’ equity		753,984			735,996			707,654
Total liabilities and stockholders’ equity	$	8,621,338		$	8,285,227		$	8,256,892

Select Financial Data

	As of and for the Three Months Ended						As of and for the Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(Shares in thousands)	2025		2025		2024		2025		2024
Selected Financial Ratios and Other Data:
Earnings per share
Basic	$	0.85	$	0.82	$	0.88	$	1.67	$	1.77
Diluted		0.84		0.81		0.87		1.65		1.75
Core net income (non-GAAP)
Basic	$	0.88	$	0.88	$	0.86	$	1.77	$	1.70
Diluted		0.88		0.88		0.85		1.75		1.68
Book value per common share (excluding minority interest)	$	24.79	$	23.98	$	21.09	$	24.79	$	21.09
Tangible book value per share (non-GAAP)	$	24.33	$	23.51	$	20.61	$	24.33	$	20.61
Common shares outstanding, par value $0.01 per share⁽¹⁾		30,412		30,697		30,630		30,412		30,630
Weighted average common shares outstanding, basic		30,558		30,682		30,551		30,619		30,513
Weighted average common shares outstanding, diluted		30,758		30,946		30,832		30,872		30,789

(1) 70,000,000 shares authorized; 30,983,139, 30,940,480, and 30,743,666 shares issued for the periods ended June 30, 2025, March 31, 2025, and June 30, 2024 respectively, and 30,412,241, 30,696,940, and 30,630,386 shares outstanding for the periods ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.

Select Financial Data

	As of and for the Three Months Ended						As of and for the Six Months Ended
	June 30,		March 31,		June 30,		June 30,
	2025		2025		2024		2025		2024
Selected Performance Metrics:
Return on average assets	1.23	%	1.22	%	1.30	%	1.23	%	1.33	%
Core return on average assets (non-GAAP)	1.28	%	1.33	%	1.27	%	1.30	%	1.27	%
Return on average equity	14.06	%	14.05	%	17.27	%	14.06	%	17.75	%
Core return on average tangible common equity (non-GAAP)	14.90	%	15.54	%	17.34	%	15.21	%	17.46	%
Average equity to average assets	8.78	%	8.71	%	7.53	%	8.75	%	7.48	%
Tangible common equity to tangible assets (non-GAAP)	8.60	%	8.73	%	7.66	%	8.60	%	7.66	%
Loan yield	5.05	%	5.00	%	4.68	%	5.03	%	4.72	%
Securities yield	5.11	%	5.15	%	5.22	%	5.13	%	5.21	%
Deposit cost	1.62	%	1.59	%	1.55	%	1.61	%	1.51	%
Net interest margin	3.55	%	3.55	%	3.46	%	3.55	%	3.47	%
Efficiency ratio ⁽¹⁾	50.14	%	54.10	%	50.37	%	52.07	%	49.56	%
Core efficiency ratio (non-GAAP)	49.21	%	52.11	%	50.80	%	50.64	%	50.60	%

Asset Quality Ratios:
Nonaccrual loans to total loans	0.74	%	0.70	%	0.78	%	0.74	%	0.78	%
Nonperforming assets to total assets	0.41	%	0.41	%	0.43	%	0.41	%	0.43	%
Allowance for credit losses on loans to nonaccrual loans	170.02	%	175.07	%	182.83	%	170.02	%	182.83	%
Allowance for credit losses on loans to total loans	1.25	%	1.23	%	1.42	%	1.25	%	1.42	%
Annualized net charge-offs to average loans	0.30	%	0.22	%	0.25	%	0.26	%	0.22	%

Liquidity Ratios:
2 day Liquidity Coverage of Uninsured Deposits %	96.73	%	93.75	%	100.83	%	96.73	%	100.83	%
Cash and Borrowing Capacity Coverage of Uninsured, Non-Supercore Deposits (%)	167.94	%	163.71	%	174.24	%	167.94	%	174.24	%

Capital Ratios:
Tier 1 leverage capital ratio	9.22	%	9.22	%	8.42	%	9.22	%	8.42	%
Tier 1 risk-based capital ratio	14.13	%	14.27	%	13.48	%	14.13	%	13.48	%
Total risk-based capital ratio	16.43	%	16.61	%	16.04	%	16.43	%	16.04	%
Common equity tier 1 capital ratio	14.13	%	14.27	%	13.48	%	14.13	%	13.48	%

(1) Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income.

Loan and PACE Assessments Portfolio Composition

(In thousands)	At June 30, 2025					At March 31, 2025					At June 30, 2024
	Amount			% of total		Amount			% of total		Amount			% of total
Commercial portfolio:
Commercial and industrial	$	1,196,804		25.4	%	$	1,183,297		25.3	%	$	1,012,400		22.6	%
Multifamily		1,406,193		29.8	%		1,371,950		29.4	%		1,230,545		27.5	%
Commercial real estate		422,068		9.0	%		409,004		8.7	%		377,484		8.4	%
Construction and land development		20,330		0.4	%		20,690		0.4	%		23,254		0.5	%
Total commercial portfolio		3,045,395		64.6	%		2,984,941		63.8	%		2,643,683		59.0	%

Retail portfolio:
Residential real estate lending		1,292,013		27.4	%		1,303,856		27.9	%		1,404,624		31.4	%
Consumer solar		345,604		7.3	%		356,601		7.6	%		385,567		8.6	%
Consumer and other		31,332		0.7	%		32,108		0.7	%		37,965		1.0	%
Total retail portfolio		1,668,949		35.4	%		1,692,565		36.2	%		1,828,156		41.0	%
Total loans held for investment		4,714,344		100.0	%		4,677,506		100.0	%		4,471,839		100.0	%

Allowance for credit losses		(58,998	)				(57,676	)				(63,444	)
Loans receivable, net	$	4,655,346				$	4,619,830				$	4,408,395

PACE assessments:
Available for sale, at fair value
Residential PACE assessments		178,247		14.7	%		161,147		13.4	%		112,923		9.7	%

Held-to-maturity, at amortized cost
Commercial PACE assessments		278,006		22.9	%		271,200		22.6	%		256,663		22.0	%
Residential PACE assessments		759,871		62.4	%		767,507		64.0	%		798,561		68.4	%
Total Held-to-maturity PACE assessments		1,037,877		85.3	%		1,038,707		86.6	%		1,055,224		90.4	%
Total PACE assessments		1,216,124		100.0	%		1,199,854		100.0	%		1,168,147		100.0	%

Allowance for credit losses		(657	)				(654	)				(655	)
Total PACE assessments, net	$	1,215,467				$	1,199,200				$	1,167,492

Loans receivable, net and total PACE assessments, net as a % of Deposits		75.9	%				78.5	%				74.9	%
Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs		75.9	%				78.5	%				76.4	%

Net Interest Income Analysis

	Three Months Ended
	June 30, 2025						March 31, 2025						June 30, 2024
(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	$	161,965	$	1,639	4.06	%	$	121,321	$	1,194	3.99	%	$	213,725	$	2,690	5.06	%
Securities⁽¹⁾		3,361,812		42,850	5.11	%		3,220,590		40,867	5.15	%		3,308,881		42,937	5.22	%
Resell agreements		52,621		887	6.76	%		30,169		786	10.57	%		122,618		2,041	6.69	%
Loans receivable, net ⁽²⁾		4,659,667		58,723	5.05	%		4,695,264		57,843	5.00	%		4,406,843		51,293	4.68	%
Total interest-earning assets		8,236,065		104,099	5.07	%		8,067,344		100,690	5.06	%		8,052,067		98,961	4.94	%
Non-interest-earning assets:
Cash and due from banks		5,622						5,045						6,371
Other assets		203,992						220,589						217,578
Total assets	$	8,445,679					$	8,292,978					$	8,276,016

Interest-bearing liabilities:
Savings, NOW and money market deposits	$	4,457,620	$	28,653	2.58	%	$	4,242,786	$	26,806	2.56	%	$	3,729,858	$	24,992	2.69	%
Time deposits		218,835		1,940	3.56	%		232,683		2,111	3.68	%		210,565		1,898	3.63	%
Brokered CDs		—		—	0.00	%		—		—	0.00	%		156,086		1,992	5.13	%
Total interest-bearing deposits		4,676,455		30,593	2.62	%		4,475,469		28,917	2.62	%		4,096,509		28,882	2.84	%
Borrowings		75,741		597	3.16	%		134,340		1,196	3.61	%		104,560		887	3.41	%
Total interest-bearing liabilities		4,752,196		31,190	2.63	%		4,609,809		30,113	2.65	%		4,201,069		29,769	2.85	%
Non-interest-bearing liabilities:
Demand and transaction deposits		2,895,845						2,901,061						3,390,941
Other liabilities		56,203						59,728						60,982
Total liabilities		7,704,244						7,570,598						7,652,992
Stockholders’ equity		741,435						722,380						623,024
Total liabilities and stockholders’ equity	$	8,445,679					$	8,292,978					$	8,276,016

Net interest income / interest rate spread			$	72,909	2.44	%			$	70,577	2.41	%			$	69,192	2.09	%
Net interest-earning assets / net interest margin	$	3,483,869			3.55	%	$	3,457,535			3.55	%	$	3,850,998			3.46	%

Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs	$	7,572,300			1.62	%	$	7,376,530			1.59	%	$	7,331,364			1.48	%
Total deposits / total cost of deposits	$	7,572,300			1.62	%	$	7,376,530			1.59	%	$	7,487,450			1.55	%
Total funding / total cost of funds	$	7,648,041			1.64	%	$	7,510,870			1.63	%	$	7,592,010			1.58	%

(1) Includes Federal Home Loan Bank (FHLB) stock in the average balance, and dividend income on FHLB stock in interest income.
(2) Includes prepayment penalty interest income in 2Q2025, 1Q2025, or 2Q2024 of $200,076, $0, and $0, respectively (in thousands).

Net Interest Income Analysis

	Six Months Ended
	June 30, 2025						June 30, 2024
(In thousands)	Average Balance		Income / Expense		Yield / Rate		Average Balance		Income / Expense		Yield / Rate

Interest-earning assets:
Interest-bearing deposits in banks	$	141,756	$	2,833	4.03	%	$	209,547	$	5,282	5.07	%
Securities		3,291,591		83,717	5.13	%		3,239,619		84,000	5.21	%
Resell agreements		41,457		1,673	8.14	%		100,814		3,368	6.72	%
Total loans, net ⁽¹⁾⁽²⁾		4,677,367		116,566	5.03	%		4,398,665		103,245	4.72	%
Total interest-earning assets		8,152,171		204,789	5.07	%		7,948,645		195,895	4.96	%
Non-interest-earning assets:
Cash and due from banks		5,335						5,720
Other assets		212,245						221,924
Total assets	$	8,369,751					$	8,176,289

Interest-bearing liabilities:
Savings, NOW and money market deposits	$	4,350,797	$	55,459	2.57	%	$	3,660,704	$	46,864	2.57	%
Time deposits		225,721		4,051	3.62	%		199,305		3,474	3.51	%
Brokered CDs		—		—	0.00	%		173,163		4,435	5.15	%
Total interest-bearing deposits		4,576,518		59,510	2.62	%		4,033,172		54,773	2.73	%
Borrowings		104,879		1,793	3.45	%		196,326		3,893	3.99	%
Total interest-bearing liabilities		4,681,397		61,303	2.64	%		4,229,498		58,666	2.79	%
Non-interest-bearing liabilities:
Demand and transaction deposits		2,898,439						3,264,590
Other liabilities		57,955						70,309
Total liabilities		7,637,791						7,564,397
Stockholders’ equity		731,960						611,892
Total liabilities and stockholders’ equity	$	8,369,751					$	8,176,289

Net interest income / interest rate spread			$	143,486	2.43	%			$	137,229	2.17	%
Net interest-earning assets / net interest margin	$	3,470,774			3.55	%	$	3,719,147			3.47	%

Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs	$	7,474,957			1.61	%	$	7,124,599			1.42	%
Total deposits / total cost of deposits	$	7,474,957			1.61	%	$	7,297,762			1.51	%
Total funding / total cost of funds	$	7,579,836			1.63	%	$	7,494,088			1.57	%

(1) Includes Federal Home Loan Bank (FHLB) stock in the average balance, and dividend income on FHLB stock in interest income.
(2) Includes prepayment penalty interest income in June YTD 2025 and June YTD 2024 of $200 thousand and $18 thousand, respectively.

Deposit Portfolio Composition

	Three Months Ended
(In thousands)	June 30, 2025				March 31, 2025				June 30, 2024
	Ending Balance		Average Balance		Ending Balance		Average Balance		Ending Balance		Average Balance
Non-interest-bearing demand deposit accounts	$	2,810,489	$	2,895,845	$	2,895,757	$	2,901,061	$	3,445,068	$	3,390,941
NOW accounts		177,494		177,312		187,078		177,827		192,452		191,253
Money market deposit accounts		4,216,318		3,950,346		3,772,423		3,739,548		3,093,644		3,202,365
Savings accounts		330,892		329,962		330,410		325,411		336,943		336,240
Time deposits		198,079		218,835		226,404		232,683		227,437		210,565
Brokered certificates of deposit (“CDs”)		—		—		—		—		153,444		156,086
Total deposits	$	7,733,272	$	7,572,300	$	7,412,072	$	7,376,530	$	7,448,988	$	7,487,450

Total deposits excluding Brokered CDs	$	7,733,272	$	7,572,300	$	7,412,072	$	7,376,530	$	7,295,544	$	7,331,364

	Three Months Ended
	June 30, 2025				March 31, 2025				June 30, 2024
(In thousands)	Average Rate Paid⁽¹⁾		Cost of Funds		Average Rate Paid⁽¹⁾		Cost of Funds		Average Rate Paid⁽¹⁾		Cost of Funds

Non-interest bearing demand deposit accounts	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
NOW accounts	0.68	%	0.72	%	0.72	%	0.70	%	1.07	%	1.07	%
Money market deposit accounts	2.70	%	2.77	%	2.73	%	2.76	%	3.08	%	2.93	%
Savings accounts	1.32	%	1.30	%	1.28	%	1.28	%	1.67	%	1.37	%
Time deposits	3.22	%	3.56	%	3.52	%	3.68	%	3.50	%	3.63	%
Brokered CDs	—	%	—	%	—	%	—	%	4.98	%	5.13	%
Total deposits	1.63	%	1.62	%	1.57	%	1.59	%	1.59	%	1.55	%

Interest-bearing deposits excluding Brokered CDs	2.56	%	2.62	%	2.58	%	2.62	%	2.88	%	2.74	%

(1) Average rate paid is calculated as the weighted average of spot rates on deposit accounts. Off-balance sheet deposits are excluded from all calculations shown.

Asset Quality

(In thousands)	June 30, 2025		March 31, 2025		June 30, 2024
Loans 90 days past due and accruing	$	—	$	—	$	—
Nonaccrual loans held for sale		459		989		989
Nonaccrual loans – Commercial		27,501		27,872		23,778
Nonaccrual loans – Retail		7,199		5,072		10,924
Nonaccrual securities		6		7		29
Total nonperforming assets	$	35,165	$	33,940	$	35,720

Nonaccrual loans:
Commercial and industrial	$	12,501	$	12,786	$	8,428
Commercial real estate		3,893		3,979		4,231
Construction and land development		11,107		11,107		11,119
Total commercial portfolio		27,501		27,872		23,778

Residential real estate lending		3,805		1,375		7,756
Consumer solar		3,193		3,479		2,794
Consumer and other		201		218		374
Total retail portfolio		7,199		5,072		10,924
Total nonaccrual loans	$	34,700	$	32,944	$	34,702

Credit Quality

	June 30, 2025		March 31, 2025		June 30, 2024
($ in thousands)
Criticized and classified loans
Commercial and industrial	$	64,305	$	55,157	$	53,940
Multifamily		11,324		8,540		10,242
Commercial real estate		3,893		3,979		8,311
Construction and land development		11,107		11,107		11,119
Residential real estate lending		3,805		1,375		7,756
Consumer solar		3,193		3,479		2,794
Consumer and other		201		218		374
Total loans	$	97,828	$	83,855	$	94,536

Criticized and classified loans to total loans
Commercial and industrial	1.36	%	1.18	%	1.21	%
Multifamily	0.24	%	0.18	%	0.23	%
Commercial real estate	0.08	%	0.09	%	0.19	%
Construction and land development	0.24	%	0.24	%	0.25	%
Residential real estate lending	0.08	%	0.03	%	0.17	%
Consumer solar	0.07	%	0.07	%	0.06	%
Consumer and other	—	%	—	%	0.01	%
Total loans	2.07	%	1.79	%	2.12	%

	June 30, 2025				March 31, 2025				June 30, 2024
	Annualized net charge- offs (recoveries) to average loans		ACL to total portfolio balance		Annualized net charge- offs (recoveries) to average loans		ACL to total portfolio balance		Annualized net charge- offs (recoveries) to average loans		ACL to total portfolio balance
Commercial and industrial	0.32	%	1.42	%	0.28	%	1.29	%	0.32	%	1.44	%
Multifamily	—	%	0.20	%	—	%	0.23	%	—	%	0.38	%
Commercial real estate	—	%	0.49	%	—	%	0.39	%	—	%	0.40	%
Construction and land development	—	%	6.33	%	—	%	6.05	%	—	%	3.60	%
Residential real estate lending	(0.01	)%	0.69	%	—	%	0.73	%	(0.18	)%	0.88	%
Consumer solar	2.91	%	7.26	%	1.90	%	7.01	%	2.57	%	7.00	%
Consumer and other	0.07	%	5.74	%	0.70	%	5.67	%	0.01	%	6.49	%
Total loans	0.30	%	1.25	%	0.22	%	1.23	%	0.25	%	1.42	%

Reconciliation of GAAP to Non-GAAP Financial Measures
The information provided below presents a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure.

	As of and for the Three Months Ended									As of and for the Six Months Ended
(in thousands)	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Core operating revenue
Net Interest Income (GAAP)	$	72,909		$	70,577		$	69,192		$	143,486		$	137,229
Non-interest income (GAAP)		8,025			6,406			9,258			14,430			19,487
Add: Loss on Sale of Securities and Other Assets		1,041			680			2,691			1,721			5,465
Less: ICS One-Way Sell Fee Income⁽¹⁾		(102	)		(9	)		(4,859	)		(111	)		(7,762	)
Less: Changes in fair value of loans held-for-sale⁽⁶⁾		—			(837	)		—			(837	)		—
Less: Subdebt repurchase gain⁽²⁾		—			—			(406	)		—			(406	)
Add: Tax (credits) depreciation on solar investments⁽³⁾		310			2,868			1,815			3,179			7
Core operating revenue (non-GAAP)	$	82,183		$	79,685		$	77,691			161,868			154,020

Core non-interest expense
Non-interest expense (GAAP)	$	40,584		$	41,650		$	39,512		$	82,234		$	77,664
Add: Gain on settlement of lease termination⁽⁴⁾		—			—			—			—			499
Less: Severance costs⁽⁵⁾		(142	)		(125	)		(44	)		(267	)		(228	)
Core non-interest expense (non-GAAP)	$	40,442		$	41,525		$	39,468			81,967			77,935

Core net income
Net Income (GAAP)	$	25,989		$	25,028		$	26,753		$	51,017		$	54,002
Add: Loss on Sale of Securities and Other Assets		1,041			680			2,691			1,721			5,465
Less: ICS One-Way Sell Fee Income⁽¹⁾		(102	)		(9	)		(4,859	)		(111	)		(7,762	)
Less: Changes in fair value of loans held-for-sale⁽⁶⁾		—			(837	)		—			(837	)		—
Less: Gain on settlement of lease termination⁽⁴⁾		—			—			—			—			(499	)
Less: Subdebt repurchase gain⁽²⁾		—			—			(406	)		—			(406	)
Add: Severance costs⁽⁵⁾		142			125			44			267			228
Add: Tax (credits) depreciation on solar investments⁽³⁾		310			2,868			1,815			3,179			7
Less: Tax on notable items		(371	)		(731	)		180			(1,109	)		775
Core net income (non-GAAP)	$	27,009		$	27,124		$	26,218			54,127			51,810

Tangible common equity
Stockholders’ equity (GAAP)	$	753,984		$	735,996		$	646,112		$	753,984		$	646,112
Less: Minority interest		—			—			(133	)		—			(133	)
Less: Goodwill		(12,936	)		(12,936	)		(12,936	)		(12,936	)		(12,936	)
Less: Core deposit intangible		(1,200	)		(1,343	)		(1,852	)		(1,200	)		(1,852	)
Tangible common equity (non-GAAP)	$	739,848		$	721,717		$	631,191			739,848			631,191

Average tangible common equity
Average stockholders’ equity (GAAP)	$	741,435		$	722,380		$	623,024		$	731,960		$	611,892
Less: Minority interest		—			—			(133	)		—			(133	)
Less: Goodwill		(12,936	)		(12,936	)		(12,936	)		(12,936	)		(12,936	)
Less: Core deposit intangible		(1,270	)		(1,413	)		(1,941	)		(1,341	)		(2,032	)
Average tangible common equity (non-GAAP)	$	727,229		$	708,031		$	608,014			717,683			596,791

(1) Included in service charges on deposit accounts in the Consolidated Statements of Income.
(2) Included in other income in the Consolidated Statements of Income.
(3) Included in equity method investments income in the Consolidated Statements of Income.
(4) Included in occupancy and depreciation in the Consolidated Statements of Income.
(5) Included in compensation and employee benefits in the Consolidated Statements of Income.
(6) Included in changes in fair value of loans held-for-sale in the Consolidated Statements of Income.

The MIL Network –

July 24, 2025

MIL-OSI: Amalgamated Financial Corp. Reports Second Quarter 2025 Financial Results; Solid Deposit and Loan Growth; Strong Margin at 3.55%

Source: GlobeNewswire (MIL-OSI)

Common Equity Tier 1 Capital Ratio of 14.13% | Tangible Book Value per Share of $24.33

NEW YORK, July 24, 2025 (GLOBE NEWSWIRE) — Amalgamated Financial Corp. (the “Company” or “Amalgamated”) (Nasdaq: AMAL), the holding company for Amalgamated Bank (the “Bank”), today announced financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Highlights (on a linked quarter basis)

Net income of $26.0 million, or $0.84 per diluted share, compared to $25.0 million, or $0.81 per diluted share.
Core net income¹ of $27.0 million, or $0.88 per diluted share, compared to $27.1 million, or $0.88 per diluted share.

Deposits and Liquidity

On-balance sheet deposits increased $321.2 million, or 4.3%, to $7.7 billion.
Excluding $112.3 million of temporary pension funding deposits received on the last day of the quarter and withdrawn on the following day, total deposits increased $208.9 million, or 2.8%, to $7.6 billion.
Off-balance sheet deposits were $41.4 million at the end of the quarter.
Political deposits increased $136.5 million, or 13%, to $1.2 billion, which includes both on and off-balance sheet deposits.
Average cost of deposits, increased 3 basis points to 162 basis points, where non-interest-bearing deposits comprised 36% of total deposits.

Assets and Margin

Net interest margin remained unchanged at 3.55%.
Net interest income grew $2.3 million, or 3.3%, to $72.9 million.
Net loans receivable increased $35.5 million, or 0.8%, to $4.7 billion.
Net loans in growth mode (commercial and industrial, commercial real estate, and multifamily) increased $60.8 million or 2.1%.
Total PACE assessments grew $16.3 million, or 1.4%, to $1.2 billion.
The multifamily and commercial real estate loan portfolios totaled $1.8 billion and had a concentration of 202% to total risk based capital.

Capital and Returns

Tier 1 leverage ratio remained constant at 9.22% and Common Equity Tier 1 ratio was 14.13%.
Tangible common equity¹ ratio decreased 13 basis points to 8.60% due to a larger balance sheet.
Tangible book value per share¹ increased $0.82, or 3.5%, to $24.33, and has increased $7.00, or 40.4% since September 2021.
Core return on average tangible common equity¹ of 14.90% and core return on average assets¹ of 1.28%.

Share Repurchase

Repurchased approximately 327,000 shares, or $9.7 million of common stock, through June 30, 2025, with $30.3 million in remaining capacity under the share repurchase program approved on March 10, 2025.
Approximately 74,000 shares have been repurchased from July 1 through July 22, 2025.


^{1 Definitions are presented under “Non-GAAP Financial Measures”. Reconciliations of non-GAAP financial measures to the most comparable GAAP measure are set forth on the last page of the financial information accompanying this press release and may also be found on the Company’s website, www.amalgamatedbank.com.}