Amalgamated Financial (AMAL) risk factors, FY2025 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 operations44% rewritten
3. 03obligations 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 operations71% rewritten
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 City45% rewritten
11. 11Our consumer solar loans expose us to higher credit risk
12. 12Our estimated allowance for credit losses 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 fraud99% rewritten
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 risks81% rewritten
4. 16We depend on the accuracy and completeness of information about customers and counterparties95% rewritten
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 future98% rewritten
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 operations90% rewritten
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 investment96% rewritten
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 management93% rewritten

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 operations52% rewritten
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 risk85% rewritten
4. 28Our business needs and future growth may require us to raise capital, but that capital may not be available or may be dilutive
5. 29We are subject to stringent capital requirements23% rewritten

Risks Related to Our Strategy

1. 30Our social responsibility positions may have a material adverse effect on our business, financial condition or results of operations
2. 31We may not be able to implement our growth strategy or manage costs effectively, resulting in lower earnings or profitability
3. 32New lines of business, products, product enhancements or services may subject us to additional risks
4. 33Our 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. 34We face strong competition from other banks and financial institutions and other wealth and investment management firms that could hurt our business
6. 35Difficulties 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. 36Changes in our accounting policies or in accounting standards could materially affect how we report our financial results and condition
2. 37Our 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. 38We operate in an extensively regulated industry and we are subject to examination, supervision, and comprehensive regulation by various federal and state agencies. The Company is subject to Federal Reserve regulations, and the Bank is subject to regulation, supervision and examination by the FDIC and the NYDFSNew
4. 39become unsatisfactory, or that we or our management are in violation of any law or regulation, the banking agency could take a number of different remedial actions as it deems appropriateNew
5. 40Our trust and investment management businesses are highly regulated
6. 41The Federal Reserve may require us to commit capital resources to support the Bank64% rewritten
7. 42We face a risk of noncompliance with the BSA and other anti-money laundering statutes and regulations and corresponding enforcement proceedings
8. 43We 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 penalties39% rewritten
9. 44We are exposed to litigation and compliance risks related to our Socially Responsible Banking business model56% rewritten
10. 45Our financial condition may be affected negatively by the costs of litigation
11. 46From 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. 47Shares of our common stock could face volatility due to banking sector uncertainty
2. 48Our 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. 49We have several significant investors whose individual interests may differ from yours
4. 50Transfers 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. 51Shares of our common stock are subject to dilution