Amalgamated Financial's Q2 2025 Earnings Call: Unraveling Contradictions in Loan Yields, Dividends, and Growth Strategies

Loan yields and interest rate environment, dividend payout ratio and yield targets, loan growth and securities portfolio shrinkage, dividend payout ratio and increase strategy, and loan yields and interest rate expectations are the key contradictions discussed in Amalgamated Financial Corp.'s latest 2025Q2 earnings call.



Strong Financial Performance:
- Amalgamated Financial Corp. reported core earnings per share of $0.88 for Q2 2025.
- The growth was driven by a balanced scorecard for both strong deposit gathering and solid loan origination, particularly in multifamily, CRE, and C&I portfolios.

Deposit and Loan Growth:
- On-balance sheet deposit growth reached $209 million during the second quarter, not including $112 million of temporary pension funding deposits.
- Loan growth was balanced at over $60 million across multifamily, CRE, and C&I portfolios, reflecting a 2% growth in the entire loan portfolio.

Digital Transformation and Expense Management:
- The company is investing in data-first, integrated digital monetization, expected to drive productivity and loyalty.
- The core efficiency ratio is targeted at an outer band of 52%, with the integration of the new platform expected to increase expenses, but managed to maintain discipline in cost management.

Capital Allocation and Shareholder Returns:
- Amalgamated Financial ratified a $9.7 million share repurchase and a $0.14 per common share dividend.
- The company continues to target a quarterly payout ratio of at least 20% to 25%, including both share repurchases and dividends.