Q2 2025 Amalgamated Financial Corp Earnings Call
Operator: to the Amalgamated Financial 2nd Quarter 2025 Earnings During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions with instructions to follow at that time. As a reminder, this conference call is being recorded.
Good morning, ladies and gentlemen, and welcome to the Amalgamated Financial second quarter 2025 earnings call.
During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions with instructions to follow at that time.
Jason Darby: I would now like to turn the call over to Mr. Jason Darby, Chief Financial Officer. Please go ahead. Thank you, Operator, and good morning, everyone. We appreciate your participation in our earnings call. With me today is Priscilla Sims Brown, our President and Chief Executive Officer. Additionally, Sam Brown, our Chief Banking Officer, is also here for the Q&A portion of today's call.
As a reminder, this conference call is being recorded. I would now like to turn the call over to Mr. Jason Derby. Chief Financial Officer.
Please go ahead, sir.
Speaker Change: Chief executive officer.
Additionally, Sam, Brown our chief banking officer is also here for the Q&A portion of today's call.
Jason Darby: As a reminder, a telephonic replay of this call will be available in the investor section of our website for an extended period of time. Additionally, a slide deck to complement today's discussion is also available in the investor section of our website.
Speaker Change: As a reminder, a telephonic replay of this, call will be available in the investor section of our website for an extended period of time.
Speaker Change: Additionally, a slide deck to compliment. Today's discussion is also available in the investor section of our website.
Jason Darby: Before we begin, let me remind everyone that this call may contain certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We caution investors that actual results may differ from the expectations indicated or implied by any such forward-looking information or statement. Investors should refer to slide two of our earnings slide deck, as well as our 2024 10-K, filed on March 6, 2025, for a list of risk factors that could cause actual results to differ materially from those indicated or implied by such statements. We will also discuss certain non-GAAP measures during today's call, which we believe are useful in evaluating our performance.
Speaker Change: Before we begin, let me remind everyone that this call may contain certain statements that constitute forward-looking statements within the meaning of the private Securities. Litigation Reform, Act of 1995.
Speaker Change: We caution investors that actual results May differ from the expectations indicated or implied by any such forward-looking information or statements.
Speaker Change: Investor should refer your slide to our earnings slide deck as well as our 2024, 10K file on March 6th, 2025 for a list of risk factors. That could cause actual results to differ materially from those indicated or implied by such statements.
Jason Darby: The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with U.S. GAAP. A reconciliation of these non-gap measures to the most comparable gap measure can be found in an earnings release as well as on our website.
Speaker Change: We will also discuss certain non-gaap measures during today's call which we believe are useful and evaluating our performance, the presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with us, gaap.
Priscilla Sims Brown: Let me now turn the call over to Priscilla. Good morning, everyone, and thank you for joining us. I'd like to start by talking about how Amalgamated continues to perform well, regardless of the prevailing federal narrative and related headwinds. We again delivered solid results this quarter that continue to show the power and sustainability of our earnings and profitability, highlighted by core earnings per share of $0.88. Reaching this EPS mark is something we're proud of, not simply because we hit our target, but rather because we now compete amongst some of the best-run banks in the country in terms of performance and results.
Speaker Change: A Reconciliation of these non-gaap measures to the most comparable. Gaap measure can be found in earnings release as well as on our website.
Priscilla: Let me now turn the call over to Priscilla.
Priscilla: Good morning everyone and thank you for joining us.
Speaker Change: Start by talking about.
Speaker Change: To perform well, regardless of the prevailing Federal narrative and related headwinds.
Speaker Change: We again delivered solid results. This quarter that continued to show the power and sustainability of our earnings and profitability highlighted by core earnings per share of 88 cents.
Priscilla Sims Brown: And 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, our customers, and our employees. Our Q2 results featured a balanced scorecard for both strong deposit gathering and solid loan origination from our commercial growth portfolios. This type of balance makes us optimistic for a great second half of 2025. And let me share some more details with you. Starting with deposits, we recognize $209 million of on-balance-sheet deposit growth through the second quarter, which does not include $112 million of temporary ordinary pension funding deposits, which were received on the last day of the quarter but withdrawn the following day.
Speaker Change: Reaching this EPS Market is something. We're proud of, not simply because we hit our Target. But rather, because we now compete among some of the best run banks in the country in terms of performance and results.
Speaker Change: And 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, our customers, and our employees.
Speaker Change: Our Q2 results featured a balanced scorecard for both strong deposit, Gatherings, and solid loan origination from our commercial growth portfolios.
Speaker Change: This type of balance makes us optimistic for a great second half of 2025 and let me share some more details with you.
Speaker Change: starting with the deposits, we recognize 209 million of on balance sheet deposit Road through the second quarter, which does not include 112 million of temporary ordinary pension funding deposits, which were received on the last day of the quarter, but withdrawn, the following day,
Priscilla Sims Brown: As a reminder from our Q1 call, we moved a majority of our Q1 off-balance sheet deposits on balance sheet to fund loan originations and security purchases as we focused on driving net interest income growth. Our political deposits were a bright spot yet again, increasing $137 million, or 13%, to $1.2 billion in the quarter as fundraising begins to accelerate looking to the midterm elections, which are just 15 months away. Through July 17th, 2025, we have had a further $30 million of political deposit inflows. Our not-for-profit segment also grew deposits by more than $100 million as our mission-oriented bankers brought new customer relationships to the bank and took market share.
Speaker Change: As a reminder, from our q1 call. We moved a majority of our q1 off-balance sheet, deposits on balance sheet to fund loan, originations and security purchases. As we focused on driving net, interest income growth.
Speaker Change: Our political deposits were a bright spot yet. Again increasing 137 million or 13% to 1.2 billion dollars in the quarter as fundraising begins to accelerate looking to the midterm elections which are just 15 months away.
Speaker Change: Through July 17th 2025, we have had a further 30 million dollars of political deposit inflows.
Speaker Change: Are not for profit segment. Also grew deposits by more than a hundred million dollars as our mission-oriented Bankers brought new customer relationships to the bank and took market share.
Priscilla Sims Brown: Turning to assets, loan growth was balanced at over $60 million across our growth mode portfolios. Those are the multifamily, CRE, and CNI, and that drove about 2% loan growth. I was pleased to see these results, especially knowing that we also encountered a higher level of early payoffs and paydowns on loans. We do expect this rate of payoff activity to begin to slow in the third quarter. All in, despite the solid numbers, we were still modestly behind our one and a half to two percent target across the entire loan portfolio due to declines in our consumer solar and residential real estate loan portfolios, which we have been de-emphasizing and will continue to run off over time.
Speaker Change: Turning to assets, loan growth, was balanced at over 60 million dollars, across our growth mode portfolios. Those are the multi-family CRA and cni, and that drove about 2% loan growth,
Speaker Change: I was pleased to see these results, especially knowing that we also encountered a higher level of early payoff and pay Downs on loans.
Speaker Change: We do expect this rate of payoff, activity, to begin to slow in the third quarter.
Priscilla Sims Brown: Going forward, I think we have built the team we need to achieve our loan growth targets, and I'm excited to share more about that with you now. Since joining Amalgamated more than four years ago, I have been focused on expanding our lending platform through recruiting performance-oriented bankers. This expansion has led to improved loan growth as we have increased our loan portfolio at a 10% compound annual growth rate from $3.1 billion at the end of the second quarter of 2021 to now $4.7 billion at the end of the 2025 second quarter. Additionally, our PACE portfolio has grown at over 22% compound annual growth rate to $1.2 billion over that same period.
Speaker Change: All in despite the solid numbers we were still modestly behind our 1 and a half to 2%. Target across the entire loan portfolio. Due to declines in our consumer solar and residential real estate loan portfolios which we have been deemphasized will continue to run off over time
Speaker Change: going forward. I think we have built the team. We need to achieve our loan growth targets and I'm excited to share more about that with you now.
Speaker Change: Annual growth rate from 3.1 billion at the end of the second quarter of 2021 to now 4.7 billion at the end of the 2025 second quarter.
Speaker Change: Additionally, our Pace portfolio has grown it over, 22% compound, annual growth rate, to 1.2 billion dollars, over that same period.
Priscilla Sims Brown: While I'm very pleased with our success growing our team and our portfolio, I see an opportunity to further expand our lending platform as well as our presence in large and growing markets. For example, California is a market where we currently have a presence in San Francisco, but we see the whole state as a large growth opportunity for both loans and deposits. To accomplish this, Sam Brown and John Saltos, our Director of Commercial Banking, have been recruiting experienced bankers, and they have made great strides during the second quarter.
Speaker Change: While I'm very pleased with our success, growing our team and our portfolio. I see an opportunity to further expand our lending platform as well as our presence in large and growing markets.
Speaker Change: For example, California is a market where we currently have a presence in San Francisco, but we see the whole state as a large growth opportunity for both loans and deposits.
Speaker Change: To accomplish this Sam Brown and John Salto, our director of Commercial Banking have been recruiting experienced bankers, and they have made great strides during the second quarter.
Priscilla Sims Brown: And so I'd like to make a few key introductions this morning. Leading off, Brian Choi has joined the bank as our Western Regional Director, where he will lead our banking efforts in the West. Brian has 25 years of banking experience in California, where he was most recently the Vice President of Lending Strategy and Sales at First Republic Bank. Next, Ken Gaten has also joined Amalgamated as a Senior Relationship Manager in charge of growing our commercial real estate portfolio in the West, as well as leading our strategic efforts to further grow our customer base in California with a focus on the Bay Area.
Speaker Change: And so I'd like to make a few key introductions this morning.
Speaker Change: Leading off, Brian Choi has joined the bank as our Western Regional director where he will lead our banking efforts in the West.
Speaker Change: Brian has 25 years of banking experience in California where he was. Most recently, the vice president of lending strategy and sales at First Republic Bank.
Speaker Change: Next.
Priscilla Sims Brown: Ken has more than 25 years of CRE lending experience on the West Coast in ascending leadership roles at multiple financial services firms. Additionally, Ken Edens has joined as our Director of Climate and C&I Lending. Ken brings more than two decades of lending experience on the West Coast, most recently at East West Bank where he led that organization's project finance practice in multiple asset classes including renewable energy. Ken will lead our climate and C&I lending team nationally to help us accelerate our overall C&I lending growth. I emphasize overall C&I lending in reference to my earlier point about our flexible business model.
Speaker Change: Ken Gayton is also joined Amalgamated as a senior relationship manager in charge of growing. Our commercial real estate portfolio in the west, as well as leading our strategic efforts to further grow our customer base in California with a focus on the Bay Area.
Speaker Change: More than 25 years of CRA lending experience on the west coast and is sending leadership roles at multiple Financial Services firms.
Eden: Additionally can Eden says joined as our director of climate and cni lending.
Eden: Ken brings more than 2 Decades of lending experience on the west coast. Most recently at East West Bank where he led that organization's project Finance, practice in multiple asset classes, including renewable energy.
Eden: Ken will lead our
Eden: climate and cni lending team nationally to help us accelerate our
Eden: dni Lending.
Priscilla Sims Brown: The recently passed budget law will add pressure on areas of the renewable sector that rely on tax credits. And while we expect a minimal impact on our business, given that tax credits will not be phased out until 2027 and that the projects we have in our pipeline are shovel-ready and will fund prior to that, we nevertheless seek additional C&I channels and healthy risk-adjusted returns that are mission-aligned, and Ken is the right person to lead us. Hopefully, you're picking up my themes for growth and optimism. If you recall, we entered this plan year with a bit of negative operating leverage.
Eden: I emphasize overall cni lending in reference to my earlier point about our flexible business model. The recently passed budget law, will add pressure on areas of the renewable sector that rely on tax credits.
Eden: And while we expect a minimal impact on our business, given the tax credits will not be phased out until 2027 and that the projects we have in our pipeline are shovel ready and will fund prior to that. We nevertheless seek additional cni channels at healthy risk. Adjusted returns that a mission aligned and Ken is a right person to lead us.
Priscilla Sims Brown: As we said, we needed to make investments for the purpose of growing revenue. And we've been doing just that. We've mainly spoken about producer investments to open up markets and channels.
Priscilla Sims Brown: But now I'd like to talk a bit about our progress on infrastructure investments, which are critical for scalable growth that prioritizes revenue per share in the future. When I first started, I introduced our four-pillar strategic framework to guide our team. As part of our driving effectiveness and efficiency pillar, we have been investing in data-first, fully integrated digital monetization, which will drive improved productivity, provide a holistic view of our customers to better understand their needs, and provide more customized solutions and ultimately deliver improved revenue growth. This platform will go live in the third quarter and it's absolutely essential to remain competitive and to drive loyalty.
Hopefully, you're picking up my themes for growth and optimism. If you recall, we entered this plan here with a bit of negative operating leverage, as we said, we needed to make investments for the purpose of growing revenue. And we've been doing just that we've mainly spoken about producer Investments to open up markets and channels. But now I'd like to talk to a bit about our progress on infrastructure Investments which are critical for scalable growth, that prioritizes Revenue per share in the future.
Eden: When I first started, I introduced our 4 pillars. Strategic framework to guide our team as part of our driving Effectiveness and efficiency pillar. We have been investing in data first fully integrated digital monetization, which will drive improved productivity, provide a holistic view of our customers to better understand their needs and provide more customized Solutions and ultimately deliver improved Revenue growth.
Priscilla Sims Brown: When the platform comes online, it will drive an uptick in our second half expenses, which we've expected. But as I discussed in our first quarter call, we are carefully managing our investment spend to ensure we maintain core efficiency ratio at an outer band of approximately 52 percent. This is part of our modernization roadmap as we make the necessary investments to drive organic growth and ready Amalgamated for our eventual move through the $10 billion mark in assets.
This platform will go live in the third quarter and it's absolutely essential to remain competitive and to drive loyalty.
Eden: When the platform comes online, it will drive an uptick in our second half expenses which we've expected. But as I discussed on our first quarter call, we are carefully managing our investment. Spend to ensure we maintain core efficiency ratio at an outer band of approximately 52%,
Eden: This is part of our modernization roadmap. As we make the necessary Investments to drive organic growth and ready Amalgamated for our eventual. Move through the 10 billion dollar, Mark in assets,
Priscilla Sims Brown: Closing my remarks, we are seeing a normalization in the political narrative as the rhetoric has started to subside, while mission-oriented businesses increasingly see Amalgamated as a destination with a strong financial foundation. Our mission alignment is the reason customers choose to do business with the bank, and perseverance continues to build for many of our core customer segments, which bodes positively for the second half of the year. I would also note that we are seeing a strong level of new customer acquisitions, with a healthy pipeline of new potential relationships as we look forward to the back half of the year.
Eden: I would also note that we are seeing a strong level of new customer Acquisitions with a healthy pipeline of new potential relationships. As we look forward to the back half of the year,
Priscilla Sims Brown: This provides confidence in our ability to maintain and deliver on our earnings guidance once again this year. And one last thing, I mentioned that we now compete against the best banks in the country in terms of performance results.
Eden: this provides confidence in our ability to maintain and deliver on our earnings guidance. Once again this year.
Eden: And 1 last thing, I mentioned that we now compete against the best banks in the country in terms of performance results.
Jason Darby: Jason will have some interesting stats to share with all of you.
Jason Darby: So with that, let me turn the call over to Jason. Good morning. Thanks, Priscilla.
Jason Derby: Jason will have some interesting stats to share with all of you.
Jason Derby: So with that, let me turn the call over to Jason.
Jason Darby: Something a little fun before we dive into the numbers, the American Banker just released their list of the top performing banks in the $2 billion to $10 billion asset size range. And Amalgamated Bank was ranked number 38 out of 338 banks. That's a pretty darn good number in itself, but more importantly, Amalgamated was the number one most improved bank out of those already in the top 100, as we moved up nearly 50 spots in one year. And this is the culmination of the last three years of performance results, and also validation that we're in the upper echelon of bank performance in the US.
Good morning. Thanks Priscilla.
Jason Derby: Something a little fun before we dive into the numbers, the American Banker, just released their list of the top performing banks in the 2 billion to 10 billion dollar asset size range, and Amalgamated Bank was ranked number 38 out of 338 Banks.
Jason Derby: That's pretty darn good number in itself. But more importantly, amalgamate was the number 1 most improved Bank out of those already in the top 100 as we moved up nearly 50 spots in 1 year.
Jason Derby: This is the culmination of the last 3 years of performance results and also validation that we're in the upper echelon of Bank performance in the US.
Jason Darby: And moving to our results, we again had another solid quarter. Starting off with key highlights on slide three, net income is $26 million, or $0.84 per diluted share, and core net income, a non-GAAP measure, was $27 million, or $0.88 per diluted share. Our net interest income grew by 3.3% and was right in the middle of our Q1 guidance range at $72.9 million, as we grew our balance sheet by 2.8% to approximate our target average of $8.45 billion. Please note that our period end balance sheet includes $112.3 million of temporary deposits that were not part of our managed target and had almost no impact on our average balance.
Jason Derby: And moving to our results. We again had another solid quarter, starting off with key highlights on slide. 3, net income is 26 million or 84 cents per diluted share and coordinate income. A non-gaap measure was 27 million or 88 cents per diluted share.
Jason Derby: Our net interest income, grew by 3.3% and was right in the middle of our q1 guidance range at 72.9 million. As we grew our balance sheet by 2.8% to approximate our Target average of 8.45 billion.
Jason Derby: Please note that our period end balance sheet includes 112.3 million of temporary deposits. That were not part of our managed Target. Had almost no impact on our average balances.
Jason Darby: Our net interest margin held steady at 3.55%, and although we did not meet our target for modest margin expansion this quarter, we're pleased our margin held because a significant majority of our net deposit growth came from interest bearing deposits, which drove a three basis point increase in our cost of deposit. Also, most of our reported loan growth booked towards the end of the quarter, and as a result, we did not receive the NII and yield benefit of those loans. That said, it does set up a solid base for the second half of the year to reach our NII targets and have decent margin expansion, likely in the fourth quarter.
Jason Derby: Our net interest margin held steady at 3.55% and although we did not meet our Target for modest margin expansion. This quarter, we're pleased, our margin held because a significant majority of our net deposit growth came from interest bearing deposits, which drove a 3 basis point increase in our cost of deposits.
Also, most of our reported loan growth booked towards the end of the quarter. And as a result, we did not receive the knee and yield benefit of those loans.
That said it does set up a solid base of the second half of the year to reach our knee targets and have decent margin expansion, likely in the fourth quarter.
Jason Darby: Lastly, we hit our leverage target of 9.2% pretty much on the nose. We are particularly happy with this result as during the quarter, we executed the largest repurchase of shares in the bank's history.
Jason Darby: I'll have more on this in a little bit.
Jason Derby: Lastly, we hit our leverage Target of 9.2%, pretty much on the nose. We are particularly happy with this result. As during the quarter, we executed the largest for purchase of shares in the bank's history.
Jason Derby: I'll have more on this in a little bit.
Jason Darby: Continuing to slide four, we look at some of our key performance metrics during the second quarter. Starting on the left, our tangible book value per share increased 82 cents, or 3.5%, to $24.33. and that has grown 18% over the past four quarters. And our core revenue for diluted share was $2.67 for the second quarter, a 10 cent increase from the prior quarter. This increase was due to a combination of higher net interest income and the effect of our share repurchase. Moving across to our returns, core return on average equity was 14.61%, a decline from 15.23% in the prior quarter, which was expected as Organic Capital built another $18 million through earnings generation.
Jason Derby: Continuing this slide for, we look at some of our key performance metrics. During the second quarter, starting on the left are tangible book, value per, share increased 82 cents, or 3.5% to 24.33.
Jason Derby: And that has grown 18% over the past, 4 quarters.
Jason Derby: And our core Revenue per diluted share was $2.67 for the second quarter, a 10-cent increase from the prior quarter. This increase was due to a combination of higher net interest income and the effect of our share repurchases.
Moving across to our returns.
Jason Darby: That said, we remain near the top of the pack and are well positioned to continue returning more capital to shareholders. Our core return on average assets declined to 1.28% given our planned larger balance sheet size. Regarding capital, our C2-1 ratio modestly decreased 15 basis points to 14.13%, but remains at an industry-leading level, demonstrating the strength of our balance sheet and the conservative risk-based allocation of our capital while still generating high-level earnings. As previously mentioned, Tier 1 leverage maintained at 9.22%, yet during the second quarter, we also rateably repurchased approximately 327,000 shares, or $9.7 million worth of our common stock.
Jason Derby: Core return on average Equity was 14.61% a decline from 15.23% in the prior quarter, which was expected as organic Capital built another 18 million through earnings generation.
Jason Derby: that said, we remain near the top of the pack and are, well, positioned to continue returning, more Capital to shareholders,
Jason Derby: Our core return on average assets declined to 1.28%, given our plan larger balance sheet size.
Regarding Capital, our c21 ratio modestly, decreased 15 basis points to 14.13%, but remains at an industry-leading, level demonstrating, the strength of our balance sheet and the conservative risc-based, allocation of our Capital while still generating high level earnings.
Jason Darby: This is a big step for Amalgamated and shows our Board of Directors is committed to returning capital to shareholders.
As previously mentioned, Tier 1, leverage maintained at 9.22% yet. During the second quarter, we also rapidly repurchased approximately 327,000 shares for 9.7 million dollars worth of our common stock.
Speaker Change: This is a big step for Amalgamated shows. Our board of directors is committed to returning Capital to shareholders.
Jason Darby: Additionally, our board authorized a 14 cent per common share dividend this week to be paid in August. Looking forward, we expect the pace of buybacks to moderate in the second half of 2025, particularly if our share price rises to a level we feel more adequately reflects our forward earnings projection. But we stand ready to be opportunistic at any time, as we still have over 30 million dollars of authorized availability. We will continue to target a quarterly payout ratio of at least 20 to 25 percent, which includes both share purchases and dividends. However, similar to Q1 and Q2, we may opportunistically choose to exceed that target.
Speaker Change: Additionally, our board authorized a 14 Cent per common, share dividend, this week to be paid in August.
Speaker Change: Looking forward. We expect the pace of BuyBacks to moderate in second half of 2025, particularly, if our share price Rises to a level, we feel more adequately reflects our forward earnings projection, but we stand ready to be opportunistic at any time as we still have over 30 million dollars of authorized availability.
Speaker Change: We will continue to Target a quarterly payout ratio of, at least 20 to 25%, which includes both share repurchases and dividends.
Speaker Change: However, similar to q1 and Q2 we met opportunistically choose to exceed that Target.
Jason Darby: Turning to slide 5, on balance sheet deposits increased by $321 million or 4.3% to $7.7 billion, which includes $112.3 million of temporary pension funding deposits received on the last day of the quarter and withdrawn on the following day. Excluding these deposits, total deposits increased $208.9 million or 2.8% to $7.6 billion. We also held $41.4 million of off-balance sheet deposits at the end of the quarter. Our non-interest bearing deposits decreased to approximately 38 percent of average deposits and 36 percent of ending deposits, resulting in a three basis point rise in our cost of deposits to a still low 162 basis points for the second quarter.
Drawn in the following day.
Speaker Change: Excluding these deposits total deposits increased 208.9 million or 2.8% to 7.6 billion.
Speaker Change: We also held 41.4, million of off-balance sheet deposits at the end of the quarter.
Jason Darby: A driver to the decline in our non-interest bearing deposits is the growth in our political deposits skewing more towards interest bearing than DDA. This is not a surprise given that interest rates have remained persistently high. That said, we do not anticipate any significant upward changes in our poster rates going forward, which should drive margin reliability.
Speaker Change: Our non-existing deposits decrease to approximately 38% of average, deposits and 36% of ending deposits. Resulting in a 3 basis. Point rise in our cost of deposits to a still low 160 basis points for the second quarter.
Speaker Change: A driver to the decline. In our non-experienced deposits, is the growth in our political deposits. Skewing more towards interest bearing than DDA
This is not a surprise giving that interest rates have remained persistently High.
Speaker Change: That said, we do not anticipate any significant upward changes in our postal rates. Going forward which should drive margin reliability.
Jason Darby: Turning to slide 8, net loans receivable at June 30, 2025 are $4.7 billion, an increase of $35.5 million or 0.8% compared to the linked quarter. Our loan growth in the quarter was primarily driven by a $34.2 million increase in multifamily loans and a $13.5 million increase in commercial and industrial loans. at $13.1 million increase in commercial real estate loans, partially offset by an $11 million decrease in consumer loans and an $11.8 million decrease in residential loans. It's important to remind that our consumer solar and residential loan portfolios are primarily in runoff mode, and we do not expect to grow those portfolios in the near future.
Speaker Change: Turning to slide 8. Net loans receivable at June 30th 2025 are 4.7 billion dollars an increase of 35.5 million or 0.8% compared to the linked quarter.
Speaker Change: Our loan growth in the quarter was, primarily driven by a 34.2 million increase in multi family loans.
Speaker Change: And a 13.5 million increase in commercial and Industrial loans.
Speaker Change: And at 13.1 million increase in commercial real estate loans, partially offset by an 11 million, decrease in Consumer loans, and an 11.8 million decrease in residential loans.
Speaker Change: It's important to remind that our consumer solar and residential loan portfolios are primarily in runoff mode and we do not expect to grow those portfolios in the near future.
Jason Darby: Our growth portfolios, which include C&I, CRE, and multifamily, increased $60.8 million, or 2.1% from the linked quarter, which is healthy growth. The yield in our total loan portfolio increased 5 basis points despite a $35.6 million decrease in average loan balances, as diversified commercial loan origination was offset by paydowns and payoffs on commercial and industrial loans, lower-yielding residential loans, and consumer solar loans in the quarter. Additionally, our loan growth occurred at quarter end, which suppressed our average loan balances during the quarter.
Our growth portfolios which include cni CRA and multifamily increased 60.8 million or 2.1% from the linked quarter which is Healthy Growth.
Speaker Change: The yield in our total loan portfolio, increased 5 basis points, despite a 35.6 million, decrease in average loan, balances as Diversified. Commercial loan origination was offset by pay downs and payoffs on Commercial and Industrial loans, lower yielding residential loans, and consumer solar loans in the quarter.
Speaker Change: Additionally, our loan growth occurred at quarter end, which suppress our average loan, balances during the quarter.
Jason Darby: Turning to slide 9, core non-interest income was $9.3 million compared to $9.1 million in the length quarter. This increase was primarily related to higher commercial banking fees, partially offset by lower income from trustees. As we've discussed on prior calls, improving the consistency of our trust business performance will take time, and we do not expect meaningful improvement until 2026.
Speaker Change: Turning to slide 9 core, non-interest income, with 9.3 million compared to 9. 1 4.
Speaker Change: This increase is primarily related to higher Commercial Banking fees, partially offset, by lower income, from trust fees.
Speaker Change: As we've discussed on prior calls, improving the consistency of our trust business performance will take time and we do not expect meaningful Improvement until 2026.
Jason Darby: Core non-interest expense is $40.4 million in the second quarter, a decrease of $1.1 million from the linked 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. And while our core efficiency ratio declined to 49%, we expect that ratio to rise in the third quarter due to costs related to the added sales staff and expected digital transformation deployment that Priscilla discussed. And we will keep our target of approximately $170 million for annual OPEX.
Speaker Change: Core non-interest expense is 40.4 million in the second quarter. A decrease of 1.1 million from the length quarter.
Speaker Change: This is mainly driven by a 1.5 million decrease in professional teas, partially offset by a 04 million increase in advertising expense.
And while our core efficiency ratio decline of 49%, we expect that ratio to rise in the third quarter, due to cost related to the added sales staff and expected digital transformation deployment to the Priscilla discussed and we will keep our Target of approximately 170 million dollars for annual Opex.
Jason Darby: Moving to slide 10, nonperforming assets totaled $35.2 million or 0.41% of period end total assets at June 30, 2025, representing an increase of $1.3 million on a linked quarter basis. The increase is primarily driven by a $2.4 million increase in residential nonaccrual loans, partially offset by a $0.5 million decrease in nonaccrual loans held for sale. Net charge-offs in the quarter were 0.3% of total loans and consisted of $2.6 million in charge-offs on our consumer solar loans and $0.9 million in charge-offs for small business C&I loans.
Moving to slide. 10 non-performing assets told 35.2 million or 0.41%, a period, end total assets at June 30th, 2025 representing, an increase of 1.3 million on a linked quarter basis
Speaker Change: The increase is primarily driven by 2.4 million increase in residential non-accrual loans. Partially offset by a 0.5 million, decrease in non-accrual loans held for sale.
Net charge us in the quarter were 0.3% of total loans and consisted of 2.6 million dollars in charge offs on our consumer solar loans and 0.9 million in charge of us for small business in I loans
Jason Darby: We're going forward. We expect small business loan charges to ease as we have paused new loan origination. And the outstanding portfolio balance is now $7.4 million, of which 82% are past grade. However, we expect our consumer seller portfolio to continue to experience stress as we explore strategic portfolio options. We remind investors that Amalgamated is well-reserved for this portfolio with 7.26% coverage at period end. Our criticized and classified loans increased by $13.9 million to $97.8 million, largely related to the downgrades of four C&I loans totaling $9.7 million, the downgrade of one multifamily loan totaling $2.8 million, additional downgrades of small business loans totaling $1 million, and an increase of $2.1 million in residential and consumer substandard loans.
Speaker Change: Going forward, we expect small business, loan charges to ease, as we have, paused new loan, origination and the outstanding portfolio balance is now 7.4 million of which 82% are past grade.
Speaker Change: However, we expect our consumer seller portfolio to continue to experience stress. As we explore strategic, portfolio options,
Speaker Change: We remind investors and amalgamate as well, reserved for this portfolio with 7.26% coverage a period end.
Speaker Change: Our criticized and classified loans increase by 13.9 million to 97.8 million. Largely related to the downgrades of 4 cni. Loans totaling 9.7 million
Speaker Change: The downgrade of 1 multi family loan, totaling 2.8, million additional, downgrades of small business loans, totaling 1 million, and an increase of 2.1 million in residential and Consumer, substandard loans.
Jason Darby: Turning to slide 11, the allowance for credit losses on loans increased $1.3 million to $59 million. The ratio of allowance to total loans is 1.25% at the end of the first quarter, an increase of two basis points from 1.23% in the prior quarter. The increase was primarily the result of a $2.3 million increase in reserves from one commercial and industrial loan, as well as increases in provision related to the macroeconomic forecast used in the CECL model. The loan associated with the increased reserve is a commercial industrial business loan to an originator of consumer loans for renewable energy efficiency improvement.
Speaker Change: Turning to slide 11, the allowance for credit losses on loans increased 1.3 million to 59 million.
Speaker Change: The ratio of allowance to Total loans is 1.25% at the end of the first quarter, an increase of 2 basis points from 1.23% in the prior quarter.
Speaker Change: commercial and Industrial loan as well as increases in provision related to the macroeconomic forecasts used in the Cecil model,
Speaker Change: the loan associated with the increased Reserve is a commercial industrial business loan to an originator of Consumer loans for Renewable Energy, Efficiency improvements
Jason Darby: During the quarter, $2.5 million of debtor-in-possession, or DIP, financing was put in place, a portion of which was advanced that increased our outstanding exposure from $8.3 million to $9.3 million. 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 call. And while there remains collateral value, the situation with this loan is fluid and could result in further reserves as the work out progresses.
Speaker Change: During the quarter 2.5 million are better in possession or dip. Financing was put in place.
Speaker Change: A portion of which was Advanced that increased our outstanding exposure from 8.3 million, to 9.3 million.
Speaker Change: 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 call.
And while the remains collateral value, the situation with this loan is fluid and could result in further reserves as the workout progresses.
Jason Darby: We believe this to be an isolated situation, not reflective of our broad and diversified renewable energy commercial portfolio, something we think is well reflected in our allowance coverage ratio.
Speaker Change: We believe this to be an isolated situation, not reflective of our Broad and diversified Renewable Energy commercial portfolio. Something we think is well reflected in our allowance coverage ratio,
Jason Darby: Finishing on slide 12, we are maintaining our full year 2025 guidance of core pre-tax pre-provision earnings of $159 to $163 million, a net interest income of $293 million to $297 million, which considers the effect of the forward rate curve of 2025. Additionally, we estimate an approximate $1.9 million decrease in annual net interest income for a parallel 25 basis point decrease in interest rates beyond what the forward curve currently suggests.
Finishing on slide 12. We are maintaining our full year 2025 guidance of core pretext pre-provision earnings of 159 to 163 million.
Speaker Change: and that interesting come of 293 million to 297 million, which considers the effect of the forward rate curve of 2025
Speaker Change: Additionally, we estimate an approximate 1.9 million, decrease in annual net interest income for a parallel. 25 basis point decrease in interest rates beyond what the forward curve currently suggests.
Jason Darby: Briefly looking at the third quarter of 2025, we target modest balance sheet growth to approximately $8.6 billion, dependent on projected deposit balance. As a result, we expect our net interest income to range between $74 and $76 million in the third quarter. And we expect our net interest margin to stay near flat relative to our Q2 mark, as we believe our DDA to IBA ratio may continue to decline from Q2, given the current interest rate environment and Fed stance.
Speaker Change: briefly looking at the third quarter of 2025, we target modest, balance sheet growth to approximately 8.6 billion
Speaker Change: Dependent on projected deposit, balances.
As a result, we expect our net interest income to range between 74 and 76 million in the third quarter.
Speaker Change: And we expect our net interest margin is stay near flat relative to our Q2 mark As We believe our DDA to IBA ratio may continue to decline from Q2 giving the current interest rate environment and fed stance.
Jason Darby: Wrapping up, we're delighted to deliver another solid quarter of results for our shareholders and driving towards being in the top 20 in next year's American Banker Rankings.
Operator: And now, Operator, please open up the line for any questions. Operator? Thank you.
Speaker Change: Wrapping up, we're delighted to deliver another solid quarter of results for our shareholders and driving towards being in the top 20. And next year's American Banker rankings.
Speaker Change: And now operator, please open up the line for any questions operator.
Operator: We'll now be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove your question.
Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start One moment, please, while we poll for questions. Thank you.
Speaker Change: Thank you. We'll now be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. The confirmation tone will indicate your line is in the question queue. You may press star 2 to remove your question from the queue.
Speaker Change: For participants using speaker equipment and may be necessary to pick up your handset, before pressing the star Keys 1 moment. Please while we pull up for questions,
Mark Fitzgibbon: Our first question is from Mark Fitzgibbon with Piper Sandler.
Thank you. Our first question is from Mark Fitzgibbon with Piper Sandler.
Mark Fitzgibbon: Hey, guys, good morning and good luck with the American Banker Poll next year. Morning. Good morning, Mark.
Priscilla Sims Brown: Priscilla, first question I had, I heard your comments around the expansion in California and I guess I was curious, is it likely that that expansion will be all organic or do you envision some M&A potentially playing a role in that or maybe some combination? Well, we're not making an M&A announcement on this call, Mark. I would say that, you know, we see significant opportunity organically. In fact, in California, a good portion of our business today on the books, excuse me, is in the L.A. area. So adding one banker there and the ability to expand there seems logical.
Hey guys. Good morning and good luck with the American Banker poll next year. Good morning. Good morning, Mark.
Priscilla. First question, I had I heard your comments around the expansion in California and I guess I was curious. Is it likely that that expansion will be all organic or do you envision? Some m&a potentially playing a role in that or maybe some combination of the 2?
Mark Fitzgibbon: We also have currently in our San Francisco office bankers who do work in the East Bay, and we're looking at organic expansion into the East Bay in a bigger way. So those are some of the activities we have underway. Anything else will evolve over time as appropriate. Okay.
Well we're not making an m&a announcement on this call Mark. Um, I would say that, you know, we we see significant opportunity organically, in fact, in California, a good portion of our, uh, business today on the books, excuse me is in the LA area. So, uh, adding 1, uh, banker there and the ability to expand their seems logical. We also have currently in our San Francisco office Bankers who uh, do work in the East Bay and we're looking at organic expansion into the East Bay uh in a in a bigger way.
Speaker Change: So those are some of the activities we have underway. Anything else will evolve over time as appropriate.
Jason Darby: And then secondly, Jason, I heard your comments on that syndicated C&I credit.
Jason Darby: I guess I was curious what industry it's in, maybe some sense of how long you think the resolution might take? and any other color you could share with us would be great. Yeah absolutely and again it's part of our commercial solar portfolio but it is too an originator of consumer solar renewable fixtures if you will and the distribution of those loans is broadly throughout the United States so there's quite a bit of collateral value that's out there relative to this provider of credit. The industry in general from a consumer point of view has had some stress you've seen that flow through in our numbers and this originators is obviously having an impact as a result of that.
Mark: Okay, and then secondly um Jason I I heard your comments on that syndicated cni credit. I guess, I was curious what industry? It's in, maybe some sense of how long you think the resolution might take
Jason Darby: Now from the standpoint of a resolution it's difficult to say right now I think we took a haircut on our collateral value assessment at the end of the second quarter based on some new events that have come up. What I can share is the lending group is actively working on sourcing credit bids to facilitate an orderly transition and keep all the remaining servicing intact. There have been some developments that have called into question the bid process and what some of the excess cash would end up being which is why we drove that reserve but where we are right now is.
A haircut on our collateral value assessment at the end of the second quarter, based on some new events that have come up, what I can share is the Lending Group is actively working on sourcing, credit bids to facilitate an orderly transition, and keep all the remaining servicing intact. There have been some developments that have called into question. The bid process and what some of the excess cash would end up being which is why we drove that Reserve, but
Jason Darby: trying to figure out a way where all parties can recognize that. The interest or the best interest of everybody is to have the originator remain intact and have the servicing continue. And so those are ongoing, active negotiations that are happening as we speak, literally. And probably we'll have more information over the coming weeks.
Mark: where we are right now is
Mark: trying to figure out a way where all parties can recognize that.
Jason Darby: But with regard to the probability of outcome, it's a little too early to say. Other than that, we'll come back and remind that there is good collateral there, and that the bid process, we think, is going to be the most likely outcome once it gets back on track from a negotiation. Okay, great.
The interest or the best interest of everybody is to have the originator remain intact and have the servicing continue. And so those are ongoing active negotiations that are happening as we speak. Literally, and probably we'll have more information over the coming weeks, but with regard to the probability of outcome. It's a little too early to say other than that, we'll come back and remind that there is good collateral there. And that the bid process we think is going to be the most likely outcome, once it gets back on track from a negotiation perspective.
Jason Darby: And then, somewhat related, I guess, is it fair to expect that provisioning may run at a slightly higher level than what we've seen recently given some of the pressures and things like multifamily or the green energy space? Do you feel like you know, it's going to be necessary to run at a little bit higher level. Interesting. We really take that quarter by quarter and almost loan by loan from an assessment of provisioning. And I think the reflection of our provision decisions this quarter are pretty indicative of how we feel about the overall portfolios right now.
Okay, great. And then um, somewhat related I guess, is it fair to expect that provisioning may run at a slightly higher level than what we've seen recently given some of the pressures and things like multi-family or the green energy space. Um do you feel like
Mark: You know, it's it's going to be necessary to to run at a little bit higher level.
Mark: We?
Jason Darby: I think in our multifamily and our CRE portfolios, we've been through a large portion of the maturities that would have to have to really raise provision rates at this time, and we feel good about how we've reserved for that at the moment. On the CNI side, we actually had, if you pulled out the specific reserve, a bit of a decline in coverage ratio, went from about 129 to 123 on the overall CNI portfolio, which includes the renewables. And that's just our best show for you as to our view of the credit quality of the portfolio.
Speaker Change: Interesting, right? We really take that quarter by quarter and almost loan by loan from an assessment of provisioning and I think the reflection of our provision decisions. This quarter are pretty indicative of how we feel about the overall portfolios right now. I think in our multi family and our CRA portfolios we've been through the
large portion of the maturities that would have driven us to have to really raise provision rates at this time. And we feel good about how we preserve for that at the moment on the cni side we actually had if you pulled out the specific reserve a bit of a decline in coverage ratio went from about 129 to 123 on the overall cni portfolio which includes the Renewables and that's just our best.
Jason Darby: And looking forward, there's some new things that are coming up.
Jason Darby: Obviously, there's some potential pressure from the mayoral change in the New York City market and there's some other things that we're keeping our eye on relative to the budget bill and how that might affect our pipeline and portfolio going forward. But we'll always be very transparent, Mark, that the coverage ratios in core will be the best indicator of where we see things trending. And what I can say right now is we feel very comfortable with the portfolio as it is. There's always a possibility it could increase in the future, but right now we feel pretty good about how we've reserved for the portfolio as of the quarter.
Speaker Change: Still for you as our view of the credit quality portfolio and looking forward. There's some new things that are coming up. Obviously, there's some potential pressure from the mayoral change in the New York City Market. And there is some other things that we're keeping in our eye, on relative to the budget Bill and how that might affect our Pipeline and portfolio going forward, but we'll always be very transparent Mark. That the coverage ratios in court will be the best indicator of where we see things trending. And what I can say right now, as we feel very comfortable with the portfolio, as it is, there's always a possibility we could increase in the future but right now we feel pretty good about how we've reserved for the portfolio as of the quarter.
Mark Fitzgibbon: Thank you.
Thank you.
Speaker Change: You're welcome.
David Conrad: Our next question is from David Conrad with KVW. Yeah, good morning, everyone. I had a couple questions.
Speaker Change: Our next question is from David Conrad with KBW.
David Conrad: One on NIM and the NIM outlook. I mean, your deposit base is so strong and tough to get a lot of leverage now there. But in terms of the loan yields and the stronger EOP balance, just trying to figure out what the loan yields coming on are, you know, towards the end of the quarter and kind of build that into our outlook.
Jason Darby: For more information visit www.FEMA.gov Yeah, certainly, I'll take that and maybe Sam can pop in on the outlook for productivity. But on the bring-ons, we were really in the high five to six percent range on the Syria multifamily. We came in about. 670% on C&I and our PACE portfolio was about 7% so decent bring-ons. I think the upcoming quarter on the multifamily CRA maybe 30 basis points higher bring-on opportunity and maybe 15 basis points or so higher on the C&Is. I think PACE would be relatively similar around 7% although opportunistically it could get a little bit higher depending on certain types of deals.
David Conrad: Yeah, good morning everyone. Um had a couple couple couple questions 1 on on Nim and the Nim Outlook. Um I mean you're you're deposit based is so strong and tough to get a lot of Leverage now there. But in terms of the loan yields and and the stronger EOP balance, just just trying to figure out what the um the loan yields coming on. Are, you know, towards the end of the quarter and kind of build that into our Outlook
Yep. Certainly I'll take that and maybe Sam can pop in on the outlook for productivity, but on the bring on we were really in the
David Conrad: High High 5 to 6% range on the Syrian multifamily. We came in about,
Jason Darby: So I think on the asset side there's good opportunity for lift.
Jason Darby: When we gave our guidance for the margin for Q3 and we're saying it's remaining flat I think there's a couple of things that's driving that. The first is that there's a bit of an outsize in our securities portfolio and we try to maintain structural credit integrity so we're not going high high up on the yield there. So as we have a and going for reset we're going to end up dragging some of the gain we'll have in the loan yield in the third quarter so we think that's just going to have a neutralizing effect for the most part on the asset yields and to your point we think the cost of funds is going to be pretty stable and we're not really modeling a tremendous amount of benefit from any type of rate reduction on cost of funds going forward because we just are assuming a higher I'm sorry a lower beta on that.
David Conrad: 670% on TNI and our Pace portfolio was about 7%, so decent bring on. I think the upcoming quarter on the multifamily, CRA maybe 30 basis points higher, bring on opportunity and maybe 15 basis points or so higher. On the cni. I think Pace would be relatively similar around 7%, a little opportunistically. It could get a little bit higher depending on certain types of deals. So I think on the asset side, there's good opportunity for Lyft.
Jason Darby: Now going forward to Q4 though that's where we think there's going to be an opportunity for margin expansion because we'll eventually see a flip into probably more DDA from IBA as the political deposits continue to ramp up and so we get toward the end of the third quarter and into the fourth we hope that there'll be a little bit of a shift there that'll put a little bit of portfolio to fund the new loan originations that's where we think we're going to get that asset yield pickup because the loan yields will sort of run the table and the securities won't drag as much.
David Conrad: So as we have a little bit more of that, volume coming through and going for reset, we're going to end up dragging some of the gain. We'll have in the loan yield in the third quarter. So we think that's just going to have a neutralizing effect for the most part on the asset yields and to your point, we think the cost of funds is going to be pretty stable. And we're not really modeling a tremendous amount of benefit from any type of rate reduction, on cost of funds going forward. Because we just are assuming a higher. I'm sorry, um, a lower beta on that. Now going forward to Q4, though. That's where we think there's going to be an opportunity for margin expansion because we'll eventually see a flip into probably more. DDA from IBA as the political deposits continue to ramp up. And so when you get towards the end of the third quarter, and into the fourth, we hope that there'll be a little bit of a shift there, that'll put a little bit of reduction of pressure on the cost of fund side. And then as we continue,
David Conrad: To trade out of the Securities portfolio to fund the new loan originations. That's where we think we're going to get that asset yield pick up because the loan yields will sort of run the table and the Securities won't drag as much.
David Conrad: Got it, thank you.
David Conrad: And then maybe a little bit of color of the run rate for next quarter expenses. It sounds like you're gonna tick up a little bit based on what you said in the poll year, guys. Yeah, the expenses I do think we're going to pick up to the extent that it's three and a half million or so more than the 40.4 we came in.
Speaker Change: Got it. Thank you. And then um, maybe a little bit of color of the Run rate for next quarter expenses. It sounds like you're going to tick up a little bit based on the what you said in the full year, guys.
Speaker Change: Yeah, the expenses I do think we're going to pick up to the extent that it's
Jason Darby: I don't exactly know. I'm really happy with the levers that we were able to pull and the discipline that we showed in this quarter to be able to create some room in our expense profile for the back half of the year. We do know we're gonna have added compensation expense. Priscilla mentioned before all the new producer bankers that we've hired. Obviously, there'll be a cost to that, but we're excited about the revenue capabilities that they'll bring into the following year. And then this digital transformation process that we've been undergoing for the better part of a year, and there's a decent amount of accumulated balance sheet expenses that are going to start to roll through.
Jason Darby: That's going to also have a revenue benefit. But what we're seeing right now is keeping the $170 million target for the end of the year. I think we'll be starting to look ratably between the two quarters if we're going to hit that $170 million. But David, I think the other thing is if there's room for us to surprise on the pre-tax pre-provision guidance we're given, it will be on a betterment of expenses through the back half of the year.
3 and a half million or so more than the 40.4% that we were able to pull and the discipline that we showed in this core to be able to create some room in our expense profile, for the back half of the year, we do know we're going to have added compensation expenses. Priscilla mentioned before all the new producer Bankers that we've hired obviously they'll be a cost to that. But we're excited about the revenue capabilities that they'll bring into the following year and then this digital transformation process that we've been undergoing for the better part of the year. And there's a decent amount of accumulated balance sheet expenses that are going to start to roll through. That's going to also have a revenue benefit. But what we're seeing right now is keeping the 170 million Target for the end of the year. I think we'll be starting to look relatively between the 2 quarters. If we were going to hit that 170, but David, I think the other thing is, if there's room for us to surprise on the pre-tax, pre-provision guidance, we're giving it will be on a betterment of expenses through the back half of the year.
Jason Darby: And then last one for me, just on the capital, appreciate your comments about, you know, opportunistic on the buybacks, but just maybe a little bit thought on the dividend and maybe, you know, the longer term, you know, thoughts on a dividend payout ratio. So I always try to be. wrapped in my comments about the overall payout ratio between the buyback and the dividend. And we've targeted 20% to 25%. But the other thing that I target is generally a 2% to 2.5% yield. And the reason why I think of it that way is because we still view Amalgamated very much as a growth stock.
Speaker Change: Got it. And then last 1 for me, um, just on the capitol. Appreciate your your comments about, you know, opportunistic on, uh, the BuyBacks. But just maybe a little bit thought on the dividend and maybe, you know, the longer term.
You know, thoughts on a um a dividend payout ratio.
Speaker Change: so, I always try to be
Jason Darby: And so we don't want to be over-indexed on the yield. But what I do point to is we've been moving up the dividend scale more frequently than when we have in the past. If we went back to when we IPO-ed, we were really every two years doing roughly a two-cent dividend increase. Last year, we moved to one year on a two-cent dividend increase. And I would think we'll continue pace in that way and potentially be able to increase the penny or so that we talked maybe more than two cents going forward. But I don't have an exact target for you yet, other than that we're very conscious of the actual dividend yield and need to be a little bit higher up on the scale there.
Speaker Change: Wrapped in my cam, comments about the overall payout ratio between the buyback and the dividend and we've targeted 20 to 25%. But the other thing that I Target is generally a 2 to 2 and a half percent yield. And the reason why I think of it that way is because we still view Amalgamated very much as a growth stock. And so we don't want to be over indexed on the yield. But what I do point to is we've been moving up the dividend scale more frequently. When we have in the past, if we went back to when we ipo'd, we were really every 2 years doing roughly a 2 cent dividend increase last year, we moved to 1 year on a 2 cent dividend increase. And I would think we'll continue Pace in that way and potentially be able to increase the penny or so that we've talked about maybe more than 2 cents going forward, but I don't have an exact target for you yet. Other than that, we're very conscious of the
Speaker Change: Dividend yield and needing to be a little bit higher up on the scale there.
David Conrad: Great, perfect. Thank you. You're welcome. Thank you.
Speaker Change: Great perfect. Thank you.
You're welcome.
Operator: There are no further questions at this time.
Priscilla Sims Brown: I'd like to hand the floor back over to Priscilla Sims-Brown for any closing comments. Great. Thank you for those questions and your engagement. Thank you all for your time. We appreciate all of those questions and we look forward to the opportunity to discuss these more with you in the one-on-ones.
Speaker Change: Thank you. There are no further questions at this time. I'd like to hand the floor back over to Priscilla. Sims Brown for any closing comments.
Priscilla Sims Brown: I also would like to thank our employees, as always, for their hard work and dedication to the bank and our customers. Our success would not be possible without the commitment and determination of our talented team.
Speaker Change: Great. Uh, thank you for those questions and your engagement. Thank you all for your time. Uh, we appreciate all of those questions and we look forward to the opportunity to to discuss these more with you uh, in the 1-on-1s.
Priscilla Sims Brown: We look forward to updating you on our progress in our third quarter call. Thank you again for your time today, operator.
Speaker Change: I also would like to thank our employees, as always, for their hard work and dedication to the bank and our customers, our success would not be possible without the commitment and determination of our talented team.
Speaker Change: Uh we look forward to updating you on our progress and our third quarter call, thank you again for your time today. Operator.
Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.
At this time. Thank you for your participation.