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EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Dec. 31, 2025
Retirement Benefits [Abstract] |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company offers various pension and retirement benefit plans, as well as a long-term incentive plan to eligible employees and directors. Significant benefit plans are described as follows: Pension Plan The Company participates in a multi-employer non-contributory pension plan which covers substantially all full-time employees, both unionized and non-unionized. Employees generally qualify for participation in the plan on the first January 1 st or July 1 st after attaining age 21 and completing 1,000 Hours of Service in a 12 consecutive month period. A Memorandum of Agreement covering the unionized employees was entered into on December 20, 2023 which extended the term of the collective bargaining agreement to June 30, 2026. Under the terms of this plan, participants vest 100% upon completion of five years of service, as defined in the plan document. Plan assets are invested in the Consolidated Retirement Fund ("CRF"). The Employer Identification Number of the CRF is 13-3177000 and the Plan Number is 001. As a multi-employer plan, the Administrator of the CRF does not make separate actuarial valuations with respect to each employer, nor are plan assets so segregated. The benefits provided by the CRF are being funded by the Company and other participating employers through contributions to the Administrator, which are necessary to maintain the CRF on a sound actuarial basis. Contributions are calculated based on a percentage of participants’ qualifying base salary, which percentage is determined from time to time by the CRF Board of Trustees. The Pension Protection Act of 2006 ("PPA") ranks the funded status of multi-employer plans depending upon a plan’s current and projected funding. A plan is in the Red Zone (Critical Status) if it has a current funded percentage (as defined) of less than 65%. A plan is in the Yellow Zone (Endangered Status) if it has a current funded percentage of less than 80%, or projects a credit balance deficit within seven years. A plan is in the Green Zone if it has a current funded percentage greater than 80% and does not have a projected credit balance deficit within seven years. For the 2025 and 2024 plan years, pursuant to the PPA, the CRF was certified to be in the Green Zone (i.e. neither Critical Status nor Endangered Status). The following table summarizes certain information regarding contributions made by the Company to the CRF:
(In thousands) |  | Contributions |  | Company contributions greater than 5% of total contributions received by the CRF?
Year Ended December 31, |  |  |  |
2025 |  | $ | 8,165 |  |  | Yes
2024 |  | 7,634 |  |  | Yes
2023 |  | 7,222 |  |  | Yes
The amounts of contributions presented in the preceding table represent expense recorded by the Company during the respective periods and are included in Compensation and Employee Benefits expense on the Consolidated Statements of Income. Bonus Deferral and Stock Purchase Plan During the year ended December 31, 2024, the Company's Board of Directors approved a non-qualified Bonus Deferral And Stock Purchase Plan ("BDSPP") to provide for a bonus deferral opportunity with matching benefits to certain executives. The plan allows for participating executives to defer up to 100% of their annual incentive plan bonus in the form of “deferred stock units” ("DSUs") which will convert to shares issuable upon the earliest to occur of the executive’s separation from service (including death), a change of control or a qualifying financial emergency. The Company will match 100% up to 35% of any deferred bonus, in the form of additional DSUs credited to participants' plan accounts. Executives are required to elect their deferral amount prior to the start of the performance year. Notwithstanding the foregoing, for the first plan year ended December 31, 2024, the deferral limit was 50% (not 100%) of the annual incentive plan bonus (and any matching amounts will be awarded when the annual bonus is determined for such year). Executive bonus expense is accrued as part of the annual incentive accruals. Retirement Benefit Plans The Company offers a post-retirement health plan, a life insurance plan, and provides for two other non-qualifying supplemental retirement plan benefits; one for certain former directors, and one for certain former employees. The Company’s policy is to fund the cost of health and life benefits in amounts determined in accordance with the plan provisions. The other retirement benefit plans generally contain vesting provisions and service requirements. These plans are unfunded and represent a general obligation of the Company. The following table summarizes the plans’ benefit obligation, the changes in the plans’ benefit obligation, changes in plan assets and the plan’s funded status:
|  | Year Ended December 31,
(In thousands) |  | 2025 |  | 2024
Change in benefit obligation: |  |  |  |
Benefit obligation at beginning of year |  | $ | 2,111 |  |  | $ | 2,468 |
Service cost |  | — |  |  | — |
Interest cost |  | 97 |  |  | 106 |
Actuarial loss |  | 109 |  |  | 1 |
Benefits paid |  | (452) |  |  | (464) |
Benefit obligation at end of year |  | $ | 1,865 |  |  | $ | 2,111 |
Change in plan assets: |  |  |  |
Employer contributions |  | $ | 452 |  |  | $ | 464 |
Benefits paid |  | (452) |  |  | (464) |
Plan assets at end of year |  | $ | — |  |  | $ | — |
Benefit obligation, included in other liabilities |  | $ | 1,865 |  |  | $ | 2,111 |
The following table presents before tax effected amounts recognized in accumulated other comprehensive income (loss) at December 31:
(In thousands) |  | 2025 |  | 2024 |  | 2023
Net actuarial loss |  | $ | 2,015 |  |  | $ | 2,100 |  |  | $ | 2,300 |
Prior service credit |  | (207) |  |  | (236) |  |  | (263) |
Total amount recognized |  | $ | 1,808 |  |  | $ | 1,864 |  |  | $ | 2,037 |
The following table summarizes the components of net periodic benefit cost and other amounts recognized in other comprehensive income during the year:
(In thousands) |  | 2025 |  | 2024 |  | 2023
Components of net periodic benefit cost: |  |  |  |  |  |
Service cost |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost |  | 97 |  |  | 106 |  |  | 132 |
Prior service credit amortization |  | (29) |  |  | (29) |  |  | (29) |
Recognized actuarial loss |  | 193 |  |  | 203 |  |  | 225 |
Net periodic benefit |  | 261 |  |  | 280 |  |  | 328 |
Components of other amounts: |  |  |  |  |  |
Net regular actuarial (gain) loss |  | $ | 108 |  |  | $ | 1 |  |  | $ | (47) |
Recognized actuarial loss |  | (193) |  |  | (202) |  |  | (225) |
Prior service credit amortization |  | 29 |  |  | 29 |  |  | 29 |
Total recognized in other comprehensive income |  | (56) |  |  | (172) |  |  | (243) |
Total recognized in comprehensive income |  | $ | 205 |  |  | $ | 108 |  |  | $ | 85 |
The following table summarizes certain weighted average assumptions used to measure the plans’ obligation at the end of the year as well as net periodic benefit expense during the year:
|  | 2025 |  | 2024 |  | 2023
Weighted average assumptions used to determine benefit obligations: |  |  |  |  |  |
Discount rate |  | 4.69 | % |  | 5.16 | % |  | 4.76 | %
Weighted average assumptions used to determine net periodic benefit cost: |  |  |  |  |  |
Discount rate |  | 5.19 | % |  | 4.76 | % |  | 5.01 | %
The net actuarial loss and prior service credit that is expected to be amortized from accumulated other comprehensive loss and into net periodic expense during the year ended December 31, 2026 is $0.2 million. The following table presents the future estimated benefit payments for the next five years and thereafter as of December 31, 2025:
(In thousands) | As of December 31, 2025
2026 | $ | 309 |
2027 | 285 |
2028 | 255 |
2029 | 210 |
2030 | 191 |
Thereafter | 671 |
Total estimated future payments | 1,921 |
401(k) Plans The Company also offers two retirement savings plans which are qualified under Section 401(k) of the Internal Revenue Code ("401(k) Plan"). Substantially all employees are eligible to participate, and participants can contribute up to 15% of their salary subject to certain limitations. The Company does not make contributions to the 401(k) Plan and as such does not incur any direct compensation expense related to the 401(k) Plan. Long Term Incentive Plans Stock Options: The Company granted stock options in previous years to employees and directors. As of December 31, 2020, all options had vested and were exercisable at the option of the vested holders until the termination of each tranche after 10 years from the grant date or earlier if the employee or director has changed their employment status. As of December 31, 2025, there are no outstanding options. The Company does not currently have an active stock option plan that is available for issuing new options. A summary of the status of the Company’s options as of December 31, 2025 is as follows:
| Number of Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term |  |  | Intrinsic Value (in thousands)
Outstanding, January 1, 2025 | 106,620 |  |  | $ | 13.56 |  |  | 2.0 | years |  |
Granted | — |  |  | — |  |  | — |  |  |
Forfeited/ Expired | (15,780) |  |  | 11.00 |  |  | — |  |  |
Exercised | (90,840) |  |  | 14.01 |  |  | — |  |  |
Outstanding, December 31, 2025 | — |  |  | — |  |  | 0 | years |  | $ | — |
Vested and Exercisable, December 31, 2025 | — |  |  | $ | — |  |  | 0 | years |  | $ | — |
As noted above, there was no compensation cost attributable to the options for the year ended December 31, 2025 and December 31, 2024 as all options had been fully expensed as of December 31, 2020. The fair value of all awards outstanding as of December 31, 2025 and December 31, 2024 was zero and $2.1 million, respectively. No cash was received for options exercised in the years ended December 31, 2025 and December 31, 2024. The Company repurchased 47,384 shares and 128,530 shares for options exercised in the years ended December 31, 2025 and December 31, 2024, respectively. Time-Based Restricted Stock Units: The Amalgamated Financial Corp. 2023 Equity Incentive Plan (the “Equity Plan”) provides for the grant of stock-based incentive awards to employees and directors of the Company. The number of shares of common stock of the Company available for stock-based awards in the Equity Plan is 1,300,000 of which 564,288 shares were available for issuance as of December 31, 2025. Restricted stock units ("RSUs") represent an obligation to deliver shares to an employee or director at a future date if certain vesting conditions are met. These awards are subject to a time-based vesting schedule and are settled in shares of the Company’s common stock. These awards do not provide dividend equivalent rights from the date of grant and do not provide voting rights. Unvested awards accrue dividends based on dividends paid on common shares, but those dividends are paid in cash upon satisfaction of the specified vesting requirements on the underlying award. A summary of the status of the Company’s time-based vesting RSUs as of December 31, 2025 is as follows:
| Shares |  | Grant Date Fair Value
Unvested, January 1, 2025 | 297,817 |  |  | $ | 22.90 |
Awarded | 182,481 |  |  | 32.90 |
Forfeited/Expired | (2,568) |  |  | 26.85 |
Vested | (163,299) |  |  | 22.78 |
Unvested and Expected to Vest, December 31, 2025 | 314,431 |  |  | $ | 28.74 |
As of December 31, 2025, there was $10.1 million of total unrecognized compensation cost related to the non-vested RSUs. The weighted average period to recognize unrecognized compensation is 1.2 years. The Company repurchased 49,807 shares and 18,335 shares for RSUs vested during the year ended December 31, 2025 and 2024, respectively. Performance-Based Restricted Stock Units: Performance-based restricted stock units ("PRSUs") represent an obligation to deliver shares to an employee at a future date if certain vesting conditions are met. These awards are subject to the satisfaction of performance conditions or the satisfaction of market conditions, and are settled in shares of the Company’s common stock. These awards do not provide dividend equivalent rights from the date of grant and do not provide voting rights. Unvested awards accrue dividends based on dividends paid on common shares, but those dividends are paid in cash upon satisfaction of the specified vesting requirements on the underlying award. PRSUs are granted at target shares. The minimum and maximum awards that are achievable are 0% and 150%, respectively, of the target shares granted. A summary of the status of the Company’s PRSUs as of December 31, 2025 is as follows:
| Shares |  | Grant Date Fair Value
Unvested, January 1, 2025 | 242,240 |  |  | $ | 21.83 |
Performance Addition | 25,418 |  |  | 8.84 |
Awarded | 59,415 |  |  | 36.78 |
Forfeited/Expired | — |  |  | — |
Vested | (76,245) |  |  | 17.71 |
Unvested and Expected to Vest, December 31, 2025 | 250,828 |  |  | $ | 26.20 |
As of December 31, 2025, the Company reserved an additional 125,414 shares for issuance upon vesting of PRSUs assuming the Company achieves the maximum share payout. As of December 31, 2025, there was $8.0 million of total unrecognized compensation cost related to the non-vested PRSUs. The weighted average period to recognize unrecognized compensation is 1.3 years. The Company repurchased 27,942 shares and 45,301 shares for PRSUs vested during the year ended December 31, 2025 and 2024, respectively. During the year ended December 31, 2025, the Company awarded 25,418 additional shares related to the performance achievement of corporate goals above target at a weighted average fair value of $8.84 per share. Included in these awards was 12,851 shares with a grant date fair market value of $17.48, and 12,567 shares that were based on market-conditions in which the achievement of the goal did not result in additional expense to the Company. Compensation expense attributable to the vesting of the performance shares was $0.2 million. During the year ended December 31, 2025, the Company granted 59,415 PRSUs at target achievement of the Company's corporate goals at a weighted average fair value of $36.78 per share which vest subject to the achievement of the Company’s corporate goals. The corporate goals are based on the achievement of a target increase in Tangible Book Value, adjusted for certain factors, and the Company's relative total shareholder return compared to a group of peer banks. Deferred Restricted Stock Units: Under the BDSPP, the deferred bonus DSUs represent the employee's earned bonus which is 100% vested. The employer match DSUs are subject to certain vesting conditions, including years of employment and retirement age. These awards accrue dividends which are reinvested into additional shares of the Company stock and payable at separation. The DSUs do not provide voting rights. A summary of the status of the Company’s DSUs as of December 31, 2025 is as follows:
| Shares |  | Grant Date Fair Value
Unvested, January 1, 2025 | — |  |  | $ | — |
Deferred bonus | 16,304 |  |  | 29.87 |
Employer match | 16,304 |  |  | 29.87 |
Forfeited/Expired | — |  |  | — |
Vested | (16,304) |  |  | 29.87 |
Unvested and Expected to Vest, December 31, 2025 | 16,304 |  |  | $ | 29.87 |
As of December 31, 2025, there was $0.5 million of total unrecognized compensation cost related to the non-vested DSUs. The weighted average period to recognize unrecognized compensation is 0.9 years. Compensation expense attributable to the employee RSUs, PRSUs, and DSUs was $6.0 million, $5.0 million, and $4.2 million for the years ended December 31, 2025, 2024, and 2023, respectively. Compensation expense attributable to director RSUs was $0.9 million, $0.5 million, and $0.5 million for the years ended December 31, 2025, 2024, and 2023, respectively, and is included in "Other expense" on the Consolidated Statements of Income. Employee Stock Purchase Plan On April 28, 2021, the Company's stockholders approved the Amalgamated Financial Corp. Employee Stock Purchase Plan (the "ESPP") which was implemented on March 2, 2022. The aggregate number of shares of common stock that may be purchased and issued under the ESPP will not exceed 500,000 of previously authorized shares. Under the terms of the ESPP, employees may authorize the withholding of up to 15% of their eligible compensation to purchase the Company's shares of common stock, not to exceed $25,000 of the fair market value of such common stock for any calendar year. The purchase price per shares acquired under the ESPP will never be less than 85% of the fair market value of the Company's common stock on the last day of the offering period. The Company's Board of Directors in its discretion may terminate the ESPP at any time with respect to any shares for which options have not been granted. The Compensation and Human Resources Committee of the Board of Directors (the "Committee") has the right to amend the ESPP without the approval of our stockholders; provided, that no such change may impair the rights of a participant with respect to any outstanding offering period without the consent of such participant, other than a change determined by the Committee to be necessary to comply with applicable law. A participant may not dispose of shares acquired under the ESPP until six months following the grant date of such shares, or any earlier date as of which the Committee has determined that the participant would qualify for a hardship distribution from the Company’s 401(k) Plan. Accordingly, the fair value award associated with their discounted purchase price is expensed at the time of purchase. The Company started with 500,000 shares available for purchase at plan inception in 2022. As of December 31, 2025, the Company has 372,382 shares of remaining shares available for the purchase under ESPP. The expense related to the discount on purchased shares for the year ended December 31, 2025, December 31, 2024 and December 31, 2023 was $101.7 thousand, $93.4 thousand and $120.5 thousand, respectively, and is recorded within compensation and employee benefits expense on the Consolidated Statements of Income.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/715/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 712 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/712/tableOfContent Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 710 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/710/tableOfContent Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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