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amalgamated FINANCIAL CORP . Amalgamated Financial Corp. Reports First Quarter 2021 Financial Results April 22 , 2021 NEW YORK , April 22 , 2021 ( GLOBE NEWSWIRE ) -- Amalgamated Financial Corp. ( the " Company " or " Amalgamated " ) ( Nasdaq : AMAL ) , the holding company for Amalgamated Bank ( the " Bank " ) , today announced financial results for the first quarter ended March 31 , 2021 . On March 1 , 2021 ( the " Effective Date " ) , the Company acquired all of the outstanding stock of the Bank in a statutory share exchange transaction ( the " Reorganization " ) effected under New York law and in accordance with the terms of a Plan of Acquisition dated September 4 , 2020. In this release , unless the context indicates otherwise , references to “ we , ” “ us , ” and “ our ” refer to the Company and the Bank . However , if the discussion relates to a period before the Effective Date , the terms refer only to the Bank . First Quarter 2021 Highlights • Net income of $ 12.2 million , or $ 0.39 per diluted share , compared to $ 13.8 million , or $ 0.44 per diluted share , for the fourth quarter of 2020 and $ 9.5 million , or $ 0.30 per diluted share for the first quarter of 2020 • Core net income ( non - GAAP ) [ 1 ] of $ 13.0 million , or $ 0.41 per diluted share , compared to $ 13.8 million , or $ 0.44 per diluted . share for the fourth quarter of 2020 and $ 9.2 million , or $ 0.29 per diluted share , for the first quarter of 2020 Deposit increase of $ 381.4 million to $ 5.7 billion compared to a balance of $ 5.3 billion on December 31 , 2020 • Loan decrease of $ 224.5 million to $ 3.2 billion due to increased prepayment activity , compared to a balance of $ 3.4 billion on December 31 , 2020 • Growth in PACE assessments of $ 30.6 million , or 29.5 % annualized , from a balance of $ 421.0 million on December 31 , 2020 • Cost of deposits was 0.11 % , compared to 0.13 % for the fourth quarter of 2020 and 0.33 % for the first quarter of 2020 • Net interest margin was 2.85 % , compared to 3.06 % for the fourth quarter of 2020 and 3.46 % for the first quarter of 2020 • Common Equity Tier 1 , Total Risk - Based , and Tier 1 Leverage capital ratios were 13.70 % , 14.74 % , and 8.06 % , respectively , at March 31 , 2021 • Total nonperforming assets were $ 81.0 million or 1.27 % of total assets as of March 31 , 2021 , compared to $ 82.2 million or 1.38 % of total assets at December 31 , 2020 and $ 65.6 million , or 1.14 % of total assets at March 31 , 2020 Lynne Fox , Board Chair and Interim President and Chief Executive Officer of Amalgamated , commented , “ Our first quarter results demonstrate our strong financial footing which positions Amalgamated for continued success as we look forward . A highlight of the quarter was our deposit growth of $ 381.4 million , driven by a rebound in political deposits combined with new relationships in our core markets . Our deposit franchise clearly highlights the attractive position that Amalgamated holds as we work to service the needs of values - based institutions and strengthen our reputation as ' America's socially responsible bank ' . I am also very pleased with the credit quality of our loan portfolio combined with the actions that we took in 2020 which have allowed the Bank to begin releasing reserves . This is a testament to the conservative credit culture that has been built and which has served us well through the pandemic . I am very proud of the strong financial foundation that Amalgamated holds and which our new President and Chief Executive Officer will inherit . This last quarter we publicly endorsed HR 40 , which sets up a commission to explore reparations for African Americans , and just this week helped orchestrate a commitment by financial institutions at the White House Climate Summit to double down on their commitment to Net Zero financed emissions . We believe these are the first steps to move the country forward in building an equitable economy that creates opportunity for all individuals to thrive . The future is very bright for Amalgamated as we embark upon the next chapter in our journey and further expand our socially - responsible initiatives . " [ 1 ] Reconciliations of non - GAAP financial measures to the most comparable GAAP measure are set forth on the last page of the financial information accompanying this press release and may also be found on our website , www.amalgamatedbank.com . COVID - 19 Update Amalgamated's primary concern during the COVID - 19 pandemic is for the health and well - being of our employees , customers , and communities . Our employees continue to operate primarily in a work from home environment , and we continue to perform well , effectively transitioning many customers to our digital platform . We have offered payment deferrals as an option for our consumer and commercial borrowers who are experiencing financial stress as a result of COVID - 19 impacts . As of March 31 , 2021 , the Company had $ 8.5 million in loans on payment deferral and still accruing interest , of which $ 4.9 million were residential loans and the remaining $ 3.6 million were commercial or consumer loans . Results of Operations , Quarter Ended March 31 , 2021 Net income for the first quarter of 2021 was $ 12.2 million , or $ 0.39 per diluted share , compared to $ 13.8 million , or $ 0.44 per diluted share , for the fourth quarter of 2020 and $ 9.5 million , or $ 0.30 per diluted share , for the first quarter of 2020. The $ 1.6 million decrease for the first quarter of 2021 , compared to the previous quarter was primarily due to a $ 6.0 million decrease in non - interest income and a $ 3.8 million decrease in net interest income , partially offset by a $ 7.9 million decrease in provision for loan losses . Core net income ( non - GAAP ) for the first quarter of 2021 was $ 13.0 million , or $ 0.41 per diluted share , compared to $ 13.8 million , or $ 0.44 per diluted share , for the fourth quarter of 2020 and $ 9.2 million , or $ 0.29 per diluted share , for the first quarter of 2020. Core net income for the first quarter of