Amalgamated Financial (AMAL) risk factors, FY2024 10-K

Market and Interest Rate Risks

1. 01Our business may be adversely affected by economic conditions
2. 02Fiscal challenges facing the U.S. government could negatively impact the value of investments in GSEs and the financial markets, which in turn could have an adverse effect on our financial position or results of operations
3. 03potential future federal government shutdowns or the possibility of the federal government defaulting on its obligations for a period of time, investments in financial instruments issued or guaranteed by the federal government pose liquidity and credit risks
4. 04Changes in U.S. trade policies and other global political factors beyond our control, including the imposition of tariffs, retaliatory tariffs, or other sanctions, may adversely impact our business, financial condition and results of operations
5. 05Our operations and clients are concentrated in large metropolitan areas
6. 06Our business is subject to interest rate risk and fluctuations in interest rates may adversely affect our earnings, capital levels and overall results
7. 07The fair value of our investment securities could fluctuate because of factors outside of our control, which could have a material adverse effect on us
8. 08If we fail to effectively manage credit risk, our business and financial condition will suffer
9. 09We are subject to risk arising from conditions in the commercial real estate market
10. 10We are exposed to higher credit risk related to our multifamily real estate lending in New York City
11. 11Our consumer solar loans expose us to higher credit risk
12. 12Our estimated allowance for credit losses and fair value adjustments with respect to loans acquired in our acquisitions may prove to be insufficient to absorb actual losses in our loan portfolio, which may adversely affect our business, financial condition and results of operations

Operational and Business Risks

1. 13We are at risk of increased losses from fraud
2. 14We could be adversely affected by a failure to establish and maintain effective internal controls over financial reporting
3. 15Our third party relationships could expose us to operational and regulatory risks
4. 16We depend on the accuracy and completeness of information about customers and counterparties
5. 17We participate in a multi-employer non-contributory defined benefit pension plan for both our unionized and non-unionized employees, which could subject us to substantial cash funding requirements in the future
6. 18Climate related disasters may have an effect on the performance of our business operations and asset quality which could adversely affect our financial condition and results of operations
7. 19We are exposed to risks related to our PACE financings
8. 20Our trust and investment management business may be negatively impacted by changes in economic and market conditions and clients may seek legal remedies for investment performance
9. 21The investment management contracts we have with our clients are terminable without cause and on relatively short notice by our clients, which makes us vulnerable to short term declines in the performance of the securities under our management

Risks Related to Privacy and Technology

1. 22Our information technology systems may be subject to failure or interruption
2. 23We depend on information technology and telecommunications systems of third-party servicers, and systems failures, interruptions or breaches of security involving these systems could have an adverse effect on our operations, financial condition and results of operations
3. 24We must respond to rapid technological changes, and these changes may be more difficult or expensive than anticipated

Risks Related to Our Human Capital

1. 25We depend on our executive officers and other key employees, and our ability to attract additional key personnel, to continue the implementation of our long-term business strategy, and we could be harmed by the unexpected loss of their services
2. 26Our business could suffer if we experience employee work stoppages, union campaigns or other labor difficulties, and efforts by labor unions could divert management attention and adversely affect operating results
3. 27We are subject to liquidity risk
4. 28factors include an economic downturn affecting our loan portfolio, adverse financial market conditions, adverse regulatory or judicial actions against labor unions, political organizations or not-for profits, or adverse regulatory actions against us
5. 29Our business needs and future growth may require us to raise capital, but that capital may not be available or may be dilutive
6. 30We may be subject to more stringent capital requirements in the future

Risks Related to Our Strategy

1. 31Our social responsibility positions may have a material adverse effect on our business, financial condition or results of operations
2. 32We may not be able to implement our growth strategy or manage costs effectively, resulting in lower earnings or profitability
3. 33New lines of business, products, product enhancements or services may subject us to additional risks
4. 34Our ability to maintain our reputation is critical to the success of our business, including our ability to attract and retain customers, and failure to do so may materially adversely affect our performance
5. 35We face strong competition from other banks and financial institutions and other wealth and investment management firms that could hurt our business
6. 36Difficulties in obtaining regulatory approval for acquisitions and in combining the operations of acquired entities with the Company’s own operations may prevent us from achieving the expected benefits from our acquisitions

Legal, Accounting, Regulatory, and Compliance Risks

1. 37Changes in our accounting policies or in accounting standards could materially affect how we report our financial results and condition
2. 38Our accounting estimates and risk management processes and controls rely on analytical and forecasting techniques and models and assumptions, which may not accurately predict future events
3. 39The banking industry is heavily regulated and that regulation, together with any future legislation or regulatory changes, could limit or restrict our activities and adversely affect our operations or financial results
4. 40Our trust and investment management businesses are highly regulated
5. 41The Federal Reserve may require us to commit capital resources to support the Bank
6. 42depository institution serve as a source of strength for the institution. Under these requirements, in the future, we could be required to provide financial assistance to the Bank if the Bank experiences financial distress
7. 43We face a risk of noncompliance with the BSA and other anti-money laundering statutes and regulations and corresponding enforcement proceedings
8. 44We are subject to the Community Reinvestment Act and federal and state fair lending laws, and failure to comply with these laws could lead to material penalties
9. 45We are exposed to litigation and compliance risks related to our Socially Responsible Banking business model
10. 46Our financial condition may be affected negatively by the costs of litigation
11. 47From time to time we are, or may become, involved in suits, legal proceedings, information-gatherings, investigations and proceedings by governmental and self-regulatory agencies that may lead to adverse consequences

Risks Related to Our Common Stock

1. 48Shares of our common stock could face volatility due to banking sector uncertainty
2. 49Our ability to pay dividends is subject to regulatory limitations and the Bank’s ability to pay dividends to us is also subject to regulatory limitations
3. 50We have several significant investors whose individual interests may differ from yours
4. 51Transfers of our common stock owned by the Workers United Related Parties could adversely impact your rights as a stockholder and the market price of our common stock
5. 52Shares of our common stock are subject to dilution