Contradictions Unveiled: Navigating Loan Growth, Deposit Strategies, and Political Influences in the Latest Earnings Call

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Deposit Growth and Diversification:
- Amalgamated Financial reported $446 million of total deposit growth in Q1 2025, with political deposits increasing 11% to $1.1 billion.
- The growth was driven by strong demand across all customer segments following the conclusion of the 2024 election cycle, allowing the bank to rebuild political deposits and pay off short-term borrowings.

Net Interest Income and Margin Stability:
- The bank's net interest income was $70.6 million, within the guidance range of $70 million to $71 million, with a strong net interest margin of 3.55%.
- Stability was maintained by managing the bank's balance sheet to a generally neutral position regarding interest rate sensitivity, despite rate cuts in the previous quarter.

Capital Management and Shareholder Returns:
- Amalgamated returned capital to shareholders via a dividend of $0.14 per share and a stock buyback of $3.5 million, representing a combined payout ratio of over 30% of earnings.
- This significant return was supported by the bank's strong capital position and earnings generation, with a CET1 ratio improving to 14.32%.

Asset Generation and C-PACE Originations:
- Amalgamated is projecting an increase in C-PACE originations to an average of $15 million to $20 million per quarter in the back half of 2025, driven by new flow partnerships.
- The bank sees potential in C-PACE for growth, attributing it to the strong credit profile and attractive yields of the product.

Credit Quality and Risk Management:
- The bank's allowance for credit losses on loans decreased by $2.4 million, with a coverage ratio of 1.23% at the end of Q1.
- Improvements in macroeconomic forecasts and strict underwriting standards for not-for-profit loans contributed to this decreased risk exposure, despite a nonaccrual loan placed on a solar credit.