Amalgamated Financial Corp.

Previous wording

The following is a discussion of our consolidated financial condition as of June 30, 2025, as compared to December 31, 2024, and our results of operations for the three and six month periods ended June 30, 2025 and June 30, 2024. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition. This discussion and analysis is best read in conjunction with our unaudited consolidated financial statements and related notes as well as the financial and statistical data appearing elsewhere in this report and our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”), filed with the Securities and Exchange Commission on March 6, 2025. Historical results of operations and the percentage relationships among any amounts included, and any trends that may appear, may not indicate results of operations for any future periods.

Current wording

The following is a discussion of our consolidated financial condition as of September 30, 2025, as compared to December 31, 2024, and our results of operations for the three and nine month periods ended September 30, 2025 and September 30, 2024. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition. This discussion and analysis is best read in conjunction with our unaudited consolidated financial statements and related notes as well as the financial and statistical data appearing elsewhere in this report and our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”), filed with the Securities and Exchange Commission on March 6, 2025. Historical results of operations and the percentage relationships among any amounts included, and any trends that may appear, may not indicate results of operations for any future periods.

Previous wording

The Company was formed on August 25, 2020 to serve as the holding company for the Bank, effective March 1, 2021 when the Company acquired the common stock of the Bank. The 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. Although we are no longer majority union-owned, The Amalgamated Clothing Workers of America’s successor, Workers United, an affiliate of the Service Employees International Union that represents workers in the textile, distribution, food service and gaming industries, remains a significant stockholder, holding approximately 38% of our equity as of June 30, 2025. As of June 30, 2025, our total assets were $8.62 billion, our total loans, net of allowance for credit losses were $4.66 billion, our total deposits were $7.73 billion, and our stockholders' equity was $754.0 million. As of June 30, 2025, our trust business held $36.50 billion in assets under custody and $15.63 billion in assets under management.

Current wording

The Company was formed on August 25, 2020 to serve as the holding company for the Bank, effective March 1, 2021 when the Company acquired the common stock of the Bank. The 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. Although we are no longer majority union-owned, The Amalgamated Clothing Workers of America’s successor, Workers United, an affiliate of the Service Employees International Union that represents workers in the textile, distribution, food service and gaming industries, remains a significant stockholder, holding approximately 38% of our equity as of September 30, 2025. As of September 30, 2025, our total assets were $8.68 billion, our total loans, net of allowance for credit losses were $4.73 billion, our total deposits were $7.77 billion, and our stockholders' equity was $775.6 million. As of September 30, 2025, our trust business held $37.90 billion in assets under custody and $16.60 billion in assets under management.

Previous wording

There have been no significant changes to our significant accounting policies, or the estimates made pursuant to those policies as described in our 2024 Annual Report.

Current wording

There has been no significant change to our significant accounting policies, or the estimates made pursuant to those policies as described in our 2024 Annual Report.

Previous wording

The allowance for credit losses is established and maintained through a provision for credit losses based on expected losses inherent in our loan portfolio. Management evaluates the adequacy of the allowance on a quarterly basis, and additions to the allowance are charged to expense and subsequent changes (favorable and unfavorable) in expected credit losses are recognized immediately in net income as a credit loss expense or a reversal of credit loss expense. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed, expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Current wording

The allowance for credit losses is established and maintained through a provision for credit losses based on expected losses inherent in our loan portfolio. Management evaluates the adequacy of the allowance on a quarterly basis, and additions to the allowance are charged to expense and subsequent changes (favorable and unfavorable) in expected credit losses are recognized immediately in net income as a credit loss expense or a reversal of credit loss expense. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed, and expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain.

Previous wording

The Company assesses the sensitivity of key assumptions at least annually by stressing the assumptions to understand the impact on the model. While management utilizes its best judgment and information available, the ultimate adequacy of our allowance is dependent upon a variety of factors beyond our control which are inherently difficult to predict, the most significant being the macroeconomic forecasts. The Company's forecast of economic conditions considers baseline, favorable, and adverse scenarios. As economic conditions can change, the anticipated amount of estimated loan defaults and losses, and therefore the adequacy of the allowance, could change significantly. Economic conditions more favorable than forecasted could lead to reductions in the amount of the allowance, and conversely conditions more adverse than forecasted could require increases in the amount of the allowance. Changes in economic forecasts may not occur in the same direction or magnitude across all segments of our loan portfolio and deterioration in some quantitative inputs may offset improvement in others. The Company selects the economic forecast that is most reflective of expectations at that point in time, and changes could significantly impact the calculated estimated credit losses.

Current wording

For segments with reserves calculated under the DCF model, a peer group by segment is used to develop periodic default rates, and statistical regression is utilized to relate historical macro-economic variables to historical credit loss experience of that peer group of banks. These models are then utilized to forecast future expected credit losses based on expected future behavior of the same macro-economic variables. The Company assesses the sensitivity of key assumptions of the DCF methodologies by segment at least annually by stressing the assumptions to understand the impact on the model. While management utilizes its best judgment and information available, the ultimate adequacy of our allowance is dependent upon a variety of factors beyond our control which are inherently difficult to predict, the most significant being the macroeconomic forecasts. The Company's forecast considers a baseline scenario that may be adjusted by way of alternative scenarios with varying degrees of severity. As economic conditions can change, the anticipated amount of estimated loan defaults and losses, and therefore the adequacy of the allowance, could change significantly. Economic conditions more favorable than forecasted could lead to reductions in the amount of the allowance, and conversely conditions more adverse than forecasted could require increases in the amount of the allowance. The Company selects the economic forecast that is most reflective of expectations at that point in time, and changes could significantly impact the calculated estimated credit losses.

Previous wording

For segments that rely on a peer group to develop baseline loss rates, statistical regression is utilized to relate historical macro-economic variables to historical credit loss experience of a peer group of banks. These models are then utilized to forecast future expected credit losses based on expected future behavior of the same macro-economic variables. Adjustments to the quantitative results are made using qualitative factors. These factors include: (1) borrowers' financial condition; (2) borrowers' ability to pay; (3) nature and volume of financial assets; (4) value of the underlying collateral; (5) lending policies and procedures; (6) quality of the loan review system; (7) the experience, ability, and depth of staff; (8) regulatory and legal environment; (9) changes in market conditions; and (10) changes in economic conditions.

Current wording

Adjustments to the quantitative results for both DCF and WARM models are made using qualitative factors. These factors include: (1) borrowers' financial condition; (2) borrowers' ability to pay; (3) nature and volume of financial assets; (4) value of the underlying collateral; (5) lending policies and procedures; (6) quality of the loan review system; (7) the experience, ability, and depth of staff; (8) regulatory and legal environment; (9) changes in market conditions; and (10) changes in economic conditions.

Previous wording

Net income for the second quarter of 2025 was$26.0 million, or $0.84 per diluted share, compared to$26.8 million, or $0.87 per diluted share, for the second quarter of 2024. The$0.8 million decrease was primarily due to a$1.7 million increase in provision for credit losses,$1.4 million increase in interest expense,$1.2 million decrease in non-interest income, a $1.1 million increase in non-interest expense, and a$0.4 million increase in income tax expense, offset by a$5.1 million increase in interest and dividend income.

Current wording

Net income for the third quarter of 2025 was$26.8 million, or $0.88 per diluted share, compared to$27.9 million, or $0.90 per diluted share, for the third quarter of 2024. The$1.2 million decrease was primarily due to a$3.5 million increase in provision for credit losses, a $2.7 million increase in non-interest expense mainly driven by compensation and employee benefits, and technology costs, and$2.4 million increase in interest expense driven by deposits, offset by a$6.8 million increase in interest and dividend income, a$0.4 million decrease in income tax expense, and a$0.2 million increase in non-interest income.

Previous wording

Net income for the six months ended June 30, 2025 was$51.0 million, or $1.65 per diluted share, compared to$54.0 million, or $1.75 per diluted share, for the six months ended June 30, 2024. The$3.0 million decrease was primarily due to a$5.1 million decrease in non-interest income, a$4.5 million increase in non-interest expense, a$2.6 million increase in interest expense, and a$0.8 million increase in provision for credit losses, offset by a$8.9 million increase in interest and dividend income, and a$1.1 million decrease in income tax expense.

Current wording

Net income for the nine months ended September 30, 2025 was$77.8 million, or $2.53 per diluted share, compared to$81.9 million, or $2.65 per diluted share, for the nine months ended September 30, 2024. The$4.1 million decrease was primarily due to a$7.2 million increase in non-interest expense, a$5.0 million increase in interest expense, a$4.8 million decrease in non-interest income, and a$4.2 million increase in provision for credit losses, offset by a$15.7 million increase in interest and dividend income, and a$1.5 million decrease in income tax expense.

Previous wording

(2)Includes prepayment penalty income in 2Q2025 and 2Q2024 of $200 and $0 thousand, respectively.

Current wording

(2)Includes prepayment penalty income in 3Q2025 and 3Q2024 of $47 and $0 thousand, respectively.

Previous wording

Net interest income was$72.9 million for the second quarter of 2025, compared to$69.2 million for the second quarter of 2024. The$3.7 million increase, or 5.4% increase from the second quarter of 2024 was primarily attributable to higher yields and average balances on interest-earning assets, and lower costs on interest bearing liabilities, partially offset by higher average balances on interest-bearing liabilities.

Current wording

Net interest income was$76.4 million for the third quarter of 2025, compared to$72.1 million for the third quarter of 2024. The$4.3 million increase, or 6.0% increase from the third quarter of 2024 was primarily attributable to higher yields and average balances on interest-earning assets, and lower costs on interest bearing liabilities, partially offset by higher average balances on interest-bearing liabilities.

Previous wording

Net interest spread was 2.44% for the three months ended June 30, 2025, compared to 2.09% for the same period in 2024, an increase of 35 basis points. Our net interest margin was 3.55% for the second quarter of 2025, an increase of 9 basis points from 3.46% in the second quarter of 2024. This was largely due to increases in yields and average balances on interest-bearing assets, partially offset by an increase in total cost of funds.

Current wording

Net interest spread was 2.51% for the three months ended September 30, 2025, compared to 1.90% for the same period in 2024, an increase of 61 basis points. Our net interest margin was 3.60% for the third quarter of 2025, an increase of 9 basis points from 3.51% in the third quarter of 2024. This was largely due to increases in yields and average balances on interest-bearing assets, partially offset by an increase in total cost of funds.

Previous wording

The yield on average earning assets was 5.07% for the six months ended June 30, 2025, compared to 4.96% for the same period in 2024, an increase of 11 basis points. This increase was driven primarily by the current rate environment resulting in increased yields across securities and loan portfolios.

Current wording

The yield on average earning assets was 5.16% for the three months ended September 30, 2025, compared to 5.01% for the same period in 2024, an increase of 15 basis points. This increase was driven primarily by an increase in average securities and loan balances as well as loan yields.

Previous wording

The average rate on interest-bearing liabilities was 2.63% for the three months ended June 30, 2025, a decrease of 22 basis points from the same period in 2024, which was primarily due to an increase in average balance of deposits, particularly in savings, NOW, money market deposits and time deposits. Non-interest-bearing deposits represented 38.2% of average deposits for the three months ended June 30, 2025, compared to 45.3% for the three months ended June 30, 2024.

Current wording

The average rate on interest-bearing liabilities was 2.65% for the three months ended September 30, 2025, a decrease of 46 basis points from the same period in 2024, which was primarily due to an increase in average balance of deposits, particularly in savings, NOW, and money market deposits, a decrease in brokered certificate of deposits, and a decrease in market rates paid on deposits due to several cuts in the federal funds rate. Non-interest-bearing deposits represented 36.8% of average deposits for the three months ended September 30, 2025, compared to 49.1% for the three months ended September 30, 2024.

Previous wording

(2)Includes prepayment penalty income in June YTD 2025 and June YTD 2024 of $200 and $18 thousand, respectively.

Current wording

(2)Includes prepayment penalty income in September YTD 2025 and September YTD 2024 of $247 and $18 thousand, respectively.

Previous wording

Net interest income was$143.5 million for the six months ended June 30, 2025, compared to$137.2 million for the same period in 2024. The$6.3 million increase, or 5.4% increase was primarily attributable to higher yields and average balances on interest-earning assets, partially offset by higher average balances on interest-bearing liabilities.

Current wording

Net interest income was$219.9 million for the nine months ended September 30, 2025, compared to$209.3 million for the same period in 2024. The$10.6 million increase, or 5.1% increase was primarily attributable to higher yields and average balances on interest-earning assets, partially offset by higher average balances on interest-bearing deposits.

Previous wording

Net interest spread was 2.43% for the six months ended June 30, 2025, compared to 2.17% for the same period in 2024, an increase of 26 basis points. Our net interest margin was 3.55% for the six months ended June 30, 2025, an increase of 8 basis points from 3.47% in the same period of 2024. This was largely due to increases in yields and average balances on interest-bearing assets, partially offset by an increase in total cost of funds.

Current wording

Net interest spread was 2.46% for the nine months ended September 30, 2025, compared to 2.08% for the same period in 2024, an increase of 38 basis points. Our net interest margin was 3.57% for the nine months ended September 30, 2025, an increase of 9 basis points from 3.48% in the same period of 2024. This was largely due to increases in yields and average balances on interest-bearing assets, partially offset by an increase in total cost of funds.

Previous wording

The yield on average earning assets was 5.07% for the three months ended June 30, 2025, compared to 4.94% for the same period in 2024, an increase of 13 basis points. This increase was driven primarily by the current rate environment resulting in increased yields across securities and loan portfolios.

Current wording

The yield on average earning assets was 5.10% for the nine months ended September 30, 2025, compared to 4.97% for the same period in 2024, an increase of 13 basis points. This increase was driven primarily by the current rate environment resulting in increased yields across loan portfolios.

Previous wording

The average rate on interest-bearing liabilities was 2.64% for the six months ended June 30, 2025, a decrease of 15 basis points from the same period in 2024, which was primarily due to an increase in average balances of deposits, particularly in savings, NOW, money market deposits and time deposits. Non-interest-bearing deposits represented 38.8% of average deposits for the three months ended June 30, 2025, compared to 44.7% for the three months ended June 30, 2024.

Current wording

The average rate on interest-bearing liabilities was 2.64% for the nine months ended September 30, 2025, a decrease of 25 basis points from the same period in 2024, which was primarily due to an increase in average balances of deposits, particularly in savings, NOW, and money market deposits, and a decrease in market rates paid on deposits due to several cuts in the federal funds rate. Non-interest-bearing deposits represented 38.1% of average deposits for the three months ended September 30, 2025, compared to 46.2% for the three months ended September 30, 2024.

Previous wording

Provision for credit losses totaled an expense of $4.9 million for the second quarter of 2025 compared to an expense of $3.2 million for the same period in 2024. Overall, the provision for credit losses during the second quarter of 2025 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 Current Expected Credit Losses ("CECL") model, primarily related to the consumer solar loan portfolio, which can be volatile.

Current wording

Provision for credit losses totaled an expense of $5.3 million for the third quarter of 2025 compared to an expense of $1.8 million for the same period in 2024. Overall, the increase in provision for credit losses during the third quarter of 2025 was primarily driven by an increase in reserve for one syndicated commercial and industrial loan, which was charged-off, as well as charge-offs on our consumer solar and business banking portfolios. This was partially offset by a reserve release in excess of the charge-off and resolution of one legacy commercial and industrial loan.

Previous wording

Provision for credit losses totaled an expense of $5.5 million for the six months ended June 30, 2025 compared to an expense of $4.7 million for the same period in 2024. Overall, the provision for credit losses during the six months was primarily driven by increases in charge offs on consumer solar and other C&I loans and increases in specific reserves, offset by decreases in unfunded commitments.

Current wording

Provision for credit losses totaled an expense of $10.8 million for the nine months ended September 30, 2025 compared to an expense of $6.6 million for the same period in 2024. Overall, the increase in provision for credit losses during the nine months was primarily driven by increases in reserve for one syndicated commercial and industrial loan, which was charged-off, as well as charge offs on consumer solar and business banking portfolios, and increases in specific reserves, offset by decreases in reserves on unfunded commitments, and a reserve release from excess of reserves after charge-off and resolution of one legacy commercial and industrial loan.

Previous wording

Non-interest income was$8.0 million for the second quarter of 2025, compared to$9.3 million for the second quarter in 2024. The decrease of $1.2 million in thesecond quarter of 2025 compared to the corresponding quarter in 2024 was primarily due to a a $4.7 million decrease in service charges on deposit accounts primarily due to decreases in Insured Cash Sweep ("ICS") One-Way Sell income, offset by a $1.7 million decrease in losses on sale of securities and other assets, a $1.6 million increase in income equity investments, and a $0.2 million increase in trust department fees. Our Trust Department fees were $3.9 million in the second quarter of 2025, and $3.7 million in the same period in 2024.

Current wording

Non-interest income was$9.2 million for the third quarter of 2025, compared to$8.9 million for the third quarter in 2024. The increase of $0.2 million in thethird quarter of 2025 compared to the corresponding quarter in 2024 was primarily due to a $4.3 million decrease in losses on sale of loans and changes in fair value on loans held-for-sale, $2.0 million decrease in losses on sale of securities and other assets, a $1.4 million increase in income equity investments, and a $0.3 million increase in trust department fees, offset by a $7.8 million decrease in service charges on deposit accounts primarily due to decreases in Insured Cash Sweep ("ICS") One-Way Sell income.

Previous wording

Non-interest income was$14.4 million for the six months ended June 30, 2025, compared to$19.5 million for the six months ended June 30, 2024. The decrease of$5.1 millionwas primarily due to a$7.5 million decrease in service charges on deposit accounts primarily due to decreases in Insured Cash Sweep ("ICS") One-Way Sell income and a$3.0 million decrease in income from equity investments, offset by a$3.8 million decrease in losses on sale of securities, a$0.8 million increase in gain on sale of loans and changes in fair value on loans held-for-sale, a$0.6 million increase in trust department fees, and a$0.2 million increase in bank-owed life insurance income. Our Trust Department fees were $8.1 million in thesix months of 2025, and $7.5 million in the same period in 2024.

Current wording

Non-interest income was$23.6 million for the nine months ended September 30, 2025, compared to$28.4 million for the nine months ended September 30, 2024. The decrease of$4.8 millionwas primarily due to a$15.2 million decrease in service charges on deposit accounts primarily due to decreases in ICS One-Way Sell income, a$1.6 million decrease in income from equity investments, and a$0.2 million decrease in other income, offset by a$5.8 million decrease in losses on sale of securities, a$5.0 million decrease in losses on sale of loans and changes in fair value on loans held-for-sale, a$0.8 million increase in trust department fees, and a$0.6 million increase in bank-owed life insurance income.

Previous wording

Non-interest expense for the second quarter of 2025 was $40.6 million, an increase of $1.1 million from $39.5 million for the second quarter of 2024. The increase was driven by a $1.0 million increase in professional fees, a $0.7 million increase in technology expense, a $0.2 million increase in compensation and benefits expense, a $0.1 million increase in occupancy and depreciation expense and a $0.1 million increase in other expenses, partially offset by a $0.8 million decrease in advertising and promotion expense and a $0.2 million decrease in federal deposit insurance premiums expense.

Current wording

Non-interest expense for the third quarter of 2025 was $43.6 million, an increase of $2.7 million from $41.0 million for the third quarter of 2024. The increase was driven by a $1.7 million increase in compensation and benefits expense, a $0.9 million increase in technology expense, a $0.8 million increase in professional fees, and a $0.1 million increase in federal deposit insurance premiums expense, offset by a $0.5 million decrease in advertising and promotion expense and $0.3 million decrease in other expenses.

Previous wording

Non-interest expense for the six months ended June 30, 2025 was $82.2 million, an increase of $4.5 million from $77.7 million for the six months ended June 30, 2024. The increase was driven by a $3.3 million increase in professional fees, a $1.7 million increase in technology expense, a $1.2 million increase in compensation and benefits expense, and a $0.5 million increase in occupancy, partially offset by a $1.9 million decrease in advertising and promotion expense, a $0.3 million decrease in federal deposit insurance premiums expense, and a $0.1 million decrease in amortization of intangible assets.

Current wording

Non-interest expense for the nine months ended September 30, 2025 was $125.9 million, an increase of $7.2 million from $118.6 million for the nine months ended September 30, 2024. The increase was driven by a $4.1 million increase in professional fees, a $2.9 million increase in compensation and benefits expense, a $2.6 million increase in technology expense, and a $0.5 million increase in occupancy, offset by a $2.4 million decrease in advertising and promotion expense, a $0.2 million decrease in federal deposit insurance premiums expense, and a $0.1 million decrease in amortization of intangible assets.

Previous wording

We had a provision for income tax expense of$9.5 million for the second quarter of 2025, compared to$9.0 million for the second quarter of 2024. Our effective tax rate for the second quarter of 2025 was 26.7% compared to 25.2% for the second quarter of 2024.

Current wording

We had a provision for income tax expense of$9.9 million for the third quarter of 2025, compared to$10.3 million for the third quarter of 2024. Our effective tax rate for the third quarter of 2025 was 27.0% compared to 26.9% for the third quarter of 2024.

Previous wording

We had a provision for income tax expense of$19.2 million for the six months ended June 30, 2025, compared to$20.3 million for the same period in of 2024. Our effective tax rate for the six months ended June 30, 2025 was 27.3% compared to 27.3% for the same period in 2024.

Current wording

We had a provision for income tax expense of$29.1 million for the nine months ended September 30, 2025, compared to$30.6 million for the same period in of 2024. Our effective tax rate for the nine months ended September 30, 2025 was 27.2% compared to 27.2% for the same period in 2024.

Previous wording

Our total assets were $8.62 billion at June 30, 2025, compared to $8.26 billion at December 31, 2024. Notable changes within individual balance sheet line items include a $552.7 million increase in deposits, a $242.7 million increase in securities, a $110.3 million increase in cash, a $42.5 million increase in loans receivable, net, a $33.3 million increase in resell agreements, and a $239.0 million decrease in borrowings.

Current wording

Our total assets were $8.68 billion at September 30, 2025, compared to $8.26 billion at December 31, 2024. Notable changes within individual balance sheet line items include a $589.4 million increase in deposits, a $281.8 million increase in securities, a $119.5 million increase in net loans receivable, a $54.8 million increase in cash, a $35.2 million increase in resell agreements, and a $238.9 million decrease in borrowings.

Previous wording

At June 30, 2025 and December 31, 2024, we had available for sale securities of $1.89 billion and $1.63 billion, respectively.

Current wording

At September 30, 2025 and December 31, 2024, we had available for sale securities of $1.98 billion and $1.63 billion, respectively.

Previous wording

Our held-to-maturity securities portfolio primarily consisted of PACE assessments, tax-exempt municipal securities, GSE commercial and residential certificates and other debt. We carry these securities at amortized cost. We had held-to-maturity securities of $1.57 billion at June 30, 2025, and $1.59 billion at December 31, 2024.

Current wording

Our held-to-maturity securities portfolio primarily consisted of PACE assessments, tax-exempt municipal securities, GSE commercial and residential certificates and other debt. We carry these securities at amortized cost. We had held-to-maturity securities of $1.51 billion at September 30, 2025, and $1.59 billion at December 31, 2024.

Previous wording

During the six months ended June 30, 2025 we purchased a total of $508.5 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $56.1 million and a net realized loss of $1.7 million as part of normal and ongoing balance sheet management. During the six months ended June 30, 2024 we purchased a total of $568.5 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $219.2 million and a net realized loss of $5.5 million as part of routine and ongoing balance sheet management.

Current wording

During the nine months ended September 30, 2025 we purchased a total of $826.7 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $120.2 million and a net realized loss of $2.9 million as part of normal and ongoing balance sheet management. During the nine months ended September 30, 2024 we purchased a total of $793.4 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $271.0 million and a net realized loss of $8.7 million as part of routine and ongoing balance sheet management.

Previous wording

Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on held-to-maturity debt securities totaled $20.0 million at June 30, 2025 and $27.0 million at December 31, 2024, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status. The allowance for credit losses for held-to-maturity securities at June 30, 2025 was $0.7 million compared to $0.7 million at December 31, 2024. The provision for credit losses for held-to-maturity securities was an expense of $3.0 thousand for the three months ended June 30, 2025 and an immaterial recovery for the six months ended June 30, 2025, compared to a recovery of $2.0 thousand and $13.0 thousand for the three and six months ended June 30, 2024.

Current wording

Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on held-to-maturity debt securities totaled $20.2 million at September 30, 2025 and $27.0 million at December 31, 2024, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status. The allowance for credit losses for held-to-maturity securities at September 30, 2025 was $0.7 million compared to $0.7 million at December 31, 2024. The provision for credit losses for held-to-maturity securities was an expense of $10.0 thousand for the three and nine months ended September 30, 2025, compared to a recovery of $18.0 thousand and $31.0 thousand for the three and nine months ended September 30, 2024, respectively.

Previous wording

Accrued interest receivable on available-for-sale debt securities totaled $12.6 million at June 30, 2025 and $11.7 million at December 31, 2024, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status.

Current wording

Accrued interest receivable on available-for-sale debt securities totaled $12.7 million at September 30, 2025 and $11.7 million at December 31, 2024, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status.

Previous wording

Our securities portfolio primarily consists of high quality investments in mortgage-backed securities to government sponsored entities and other asset-backed securities and PACE assessments. All non-agency securities, composed of non-agency commercial mortgage-backed securities, collateralized loan obligations, non-agency mortgage-backed securities, and asset-backed securities, are senior tranche and approximately 80% carry AAA credit ratings and 20% carry A credit ratings or higher, with only $11 million rated below investment grade. Approximately 76% of this portfolio is classified as “available for sale.”

Current wording

Our securities portfolio primarily consists of high quality investments in mortgage-backed securities to government sponsored entities and other asset-backed securities and PACE assessments. All non-agency securities, composed of non-agency commercial mortgage-backed securities, collateralized loan obligations, non-agency mortgage-backed securities, and asset-backed securities, are senior tranche and approximately 81% carry AAA credit ratings and 19% carry A credit ratings or higher, with only $11.0 million rated below investment grade. Approximately 82% of this portfolio is classified as “available for sale.”

Previous wording

Lending related income is the most important component of our net interest income and is the main driver of our results of operations. Total loans, net of deferred origination fees and costs, and allowance for credit losses, were $4.66 billion as of June 30, 2025 compared to $4.61 billion as of December 31, 2024. Within our commercial loan portfolio, our primary focus has been on C&I, multifamily and CRE lending. We intend to focus any organic growth in our loan portfolio on these lending areas as part of our strategic plan.

Current wording

Lending related income is the most important component of our net interest income and is the main driver of our results of operations. Total loans, net of deferred origination fees and costs, and allowance for credit losses, were $4.73 billion as of September 30, 2025 compared to $4.61 billion as of December 31, 2024. Within our commercial loan portfolio, our primary focus has been on C&I, multifamily and CRE lending. We intend to focus any organic growth in our loan portfolio on these lending areas as part of our strategic plan.

Previous wording

The following table sets forth the composition of our loan portfolio, as of June 30, 2025 and December 31, 2024:

Current wording

The following table sets forth the composition of our loan portfolio, as of the dates indicated:

Previous wording

Our commercial loan portfolio comprised 64.6% of our total loan portfolio at June 30, 2025 and 63.3% of our total loan portfolio at December 31, 2024. The major categories of our commercial loan portfolio are discussed below:

Current wording

Our commercial loan portfolio comprised 65.7% of our total loan portfolio at September 30, 2025 and 63.3% of our total loan portfolio at December 31, 2024. The major categories of our commercial loan portfolio are discussed below:

Previous wording

C&I. Our C&I loans are generally made to small and medium-sized manufacturers and wholesale, retail and service-based businesses to provide either working capital or to finance major capital expenditures. In addition, our C&I portfolio includes commercial solar financings; for many of these we are the sole lender, while for some others we are either the lead bank or are a participant in a syndicated credit facility led by another institution. The primary source of repayment for C&I loans is generally operating cash flows of the business or project. We also seek to minimize risks related to these loans by requiring such loans to be collateralized by various business assets (including inventory, equipment, accounts receivable, and the assignment of contracts that generate cash flow). The average size of our C&I loans at June 30, 2025 by exposure was $4.5 million with a median size of $1.1 million. Our lending strategy focuses on developing full customer relationships including deposits, cash management, and lending. The businesses that we focus on are generally mission aligned with our core values, including organic and natural products, sustainable companies, clean energy, nonprofits, and B Corporations TM.

Current wording

C&I. Our C&I loans are generally made to small and medium-sized manufacturers and wholesale, retail and service-based businesses to provide either working capital or to finance major capital expenditures. In addition, our C&I portfolio includes commercial solar financings; for many of these we are the sole lender, while for some others we are either the lead bank or are a participant in a syndicated credit facility led by another institution. The primary source of repayment for C&I loans is generally operating cash flows of the business or project. We also seek to minimize risks related to these loans by requiring such loans to be collateralized by various business assets (including inventory, equipment, accounts receivable, and the assignment of contracts that generate cash flow). The average size of our C&I loans at September 30, 2025 by exposure was $5.1 million with a median size of $1.4 million. Our lending strategy focuses on developing full customer relationships including deposits, cash management, and lending. The businesses that we focus on are generally mission aligned with our core values, including organic and natural products, sustainable companies, clean energy, nonprofits, and B Corporations TM.

Previous wording

Our C&I loans totaled $1.20 billion at June 30, 2025, which comprised 25.4% of our total loan portfolio. During the six months ended June 30, 2025, the C&I loan portfolio increased by 1.8% from $1.18 billion at December 31, 2024.

Current wording

Our C&I loans totaled $1.27 billion at September 30, 2025, which comprised 26.6% of our total loan portfolio. During the nine months ended September 30, 2025, the C&I loan portfolio increased by 8.4% from $1.18 billion at December 31, 2024.

Previous wording

Multifamily. Our multifamily loans are generally used to purchase or refinance apartment buildings of five units or more, which collateralize the loan, in major metropolitan areas within our markets. Multifamily loans have 60% of their exposure in New York City. Our multifamily loans have been underwritten under stringent guidelines on loan-to-value and debt service coverage ratios that are designed to mitigate credit and concentration risk in this loan category. The average current LTV of our multifamily loans is approximately 54%.

Current wording

Multifamily. Our multifamily loans are generally used to purchase or refinance apartment buildings of five units or more, which collateralize the loan, in major metropolitan areas within our markets. Multifamily loans have 66% of their exposure in New York City. Our multifamily loans have been underwritten under stringent guidelines on loan-to-value and debt service coverage ratios that are designed to mitigate credit and concentration risk in this loan category. The average current LTV, based on underwriting appraisal value, of our multifamily loans is approximately 55%.

Previous wording

Our multifamily loans totaled $1.41 billion at June 30, 2025, which comprised 29.8% of our total loan portfolio. During the six months ended June 30, 2025, the multifamily loan portfolio increased by 4.0% from $1.35 billion at December 31, 2024.

Current wording

Our multifamily loans totaled $1.45 billion at September 30, 2025, which comprised 30.4% of our total loan portfolio. During the nine months ended September 30, 2025, the multifamily loan portfolio increased by 7.6% from $1.35 billion at December 31, 2024.