Amalgamated Financial Corp. Reports Record Third Quarter 2024 Financial Results; Margin Expands to 3.51%; Return on Average Assets of 1.32%
Amalgamated Financial Corp. (AMAL) reported strong Q3 2024 results with net income of $27.9 million, or $0.90 per diluted share. Key highlights include a net interest margin expansion to 3.51% and total deposits increase of $145.6 million to $7.6 billion. The company demonstrated solid growth with tangible book value per share increasing 27.9% YoY to $22.29. Net loans receivable grew by $78.0 million to $4.5 billion, while political deposits increased by $231.9 million to $2.0 billion. The bank maintained strong capital ratios with a Tier 1 leverage ratio of 8.63% and Common Equity Tier 1 ratio of 13.82%.
Amalgamated Financial Corp. (AMAL) ha riportato risultati solidi per il terzo trimestre del 2024, con un utile netto di 27,9 milioni di dollari, ovvero 0,90 dollari per azione diluita. I punti salienti includono un espansione del margine di interesse netto al 3,51% e un incremento totale dei depositi di 145,6 milioni di dollari, portandoli a 7,6 miliardi di dollari. L'azienda ha dimostrato una crescita consistente con un valore contabile tangibile per azione in aumento del 27,9% su base annua, raggiungendo 22,29 dollari. I prestiti netti ricevibili sono aumentati di 78 milioni di dollari, raggiungendo 4,5 miliardi di dollari, mentre i depositi politici sono aumentati di 231,9 milioni di dollari, per un totale di 2 miliardi di dollari. La banca ha mantenuto rapporti di capitale solidi con un rapporto di leva Tier 1 dell'8,63% e un rapporto Common Equity Tier 1 del 13,82%.
Amalgamated Financial Corp. (AMAL) reportó resultados sólidos para el tercer trimestre de 2024, con ingresos netos de 27,9 millones de dólares, o 0,90 dólares por acción diluida. Los aspectos más destacados incluyen una expansión del margen de interés neto al 3,51% y un aumento total en los depósitos de 145,6 millones de dólares, alcanzando los 7,6 mil millones de dólares. La compañía demostró un crecimiento sólido con un valor contable tangible por acción que aumentó un 27,9% interanual, alcanzando los 22,29 dólares. Los préstamos netos recibibles crecieron en 78,0 millones de dólares, alcanzando los 4,5 mil millones de dólares, mientras que los depósitos políticos aumentaron en 231,9 millones de dólares, totalizando 2,0 mil millones de dólares. El banco mantuvo sólidos ratios de capital con un ratio de apalancamiento de Tier 1 del 8,63% y un ratio de Common Equity Tier 1 del 13,82%.
Amalgamated Financial Corp. (AMAL)는 2024년 3분기 강력한 실적을 보고하였으며, 순이익은 2,790만 달러, 즉 희석 주당 0.90달러입니다. 주요 하이라이트로는 순이자 마진이 3.51%로 확대되었으며 총 예금이 1억 4,560만 달러 증가하여 76억 달러에 도달했습니다. 이 회사는 주당 실질 장부가치가 연간 27.9% 증가하여 22.29달러에 도달하면서 견고한 성장을 보여주었습니다. 순대출금은 7,800만 달러 증가하여 45억 달러에 이르렀으며, 정치적 예금은 2억 3,190만 달러 증가하여 20억 달러가 되었습니다. 은행은 8.63%의 Tier 1 레버리지 비율과 13.82%의 Common Equity Tier 1 비율을 유지하며 강력한 자본 비율을 유지했습니다.
Amalgamated Financial Corp. (AMAL) a présenté de solides résultats pour le troisième trimestre 2024, avec un bénéfice net de 27,9 millions de dollars, soit 0,90 dollar par action diluée. Les faits saillants comprennent une augmentation de la marge d'intérêt nette à 3,51% et une hausse totale des dépôts de 145,6 millions de dollars, s'élevant à 7,6 milliards de dollars. L'entreprise a montré une croissance solide, avec une valeur comptable tangible par action augmentant de 27,9% d'une année sur l'autre, atteignant 22,29 dollars. Les prêts nets à recevoir ont augmenté de 78 millions de dollars, atteignant 4,5 milliards de dollars, tandis que les dépôts politiques ont augmenté de 231,9 millions de dollars, pour un total de 2,0 milliards de dollars. La banque a maintenu de solides ratios de capital avec un ratio de levier Tier 1 de 8,63% et un ratio Common Equity Tier 1 de 13,82%.
Amalgamated Financial Corp. (AMAL) berichtete für das dritte Quartal 2024 über starke Ergebnisse mit einem Nettogewinn von 27,9 Millionen Dollar, oder 0,90 Dollar pro verwässerter Aktie. Zu den wichtigsten Highlights gehören eine Erweiterung der Nettozinsspanne auf 3,51% und ein Anstieg der Gesamteinlagen um 145,6 Millionen Dollar auf 7,6 Milliarden Dollar. Das Unternehmen zeigte ein solides Wachstum, da der tangible Buchwert pro Aktie im Jahresvergleich um 27,9% anstieg und 22,29 Dollar erreichte. Die Nettokredite stiegen um 78 Millionen Dollar auf 4,5 Milliarden Dollar, während die politischen Einlagen um 231,9 Millionen Dollar auf 2,0 Milliarden Dollar zunahmen. Die Bank hielt starke Kapitalquoten mit einer Tier 1-Leverage Ratio von 8,63% und einer Common Equity Tier 1 Ratio von 13,82%.
- Net income increased to $27.9 million from $26.8 million QoQ
- Total deposits grew by $145.6 million (2.0%) to $7.6 billion
- Net interest margin expanded by 5 basis points to 3.51%
- Tangible book value per share increased 27.9% YoY
- Political deposits grew by $231.9 million (13%) to $2.0 billion
- Average cost of deposits increased by 3 basis points to 151 basis points
- $4.3 million reduction in fair value on residential loans moved to held for sale
- Non-interest expense increased by $1.5 million QoQ
Insights
The Q3 2024 results demonstrate robust financial performance with several notable highlights. Net income increased to
Key strengths include deposit growth of
The asset quality remains strong with nonperforming assets at just
YoY Tangible Book Value per share Growth of
NEW YORK, Oct. 24, 2024 (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 third quarter ended September 30, 2024.
Third Quarter 2024 Highlights (on a linked quarter basis)
- Net income of
$27.9 million , or$0.90 per diluted share, compared to$26.8 million , or$0.87 per diluted share. - Core net income1 of
$28.0 million , or$0.91 per diluted share, compared to$26.2 million , or$0.85 per diluted share.
Deposits and Liquidity
- Total deposits increased
$145.6 million , or2.0% , to$7.6 billion including a$51.3 million decline in Brokered CDs. - Excluding Brokered CDs, on-balance sheet deposits increased
$196.9 million , or2.7% , to$7.5 billion . - Political deposits increased
$231.9 million , or13% , to$2.0 billion , which includes both on and off-balance sheet deposits. - Off-balance sheet deposits increased
$114.1 million , or11% , to$1.2 billion , comprised of both transactional political deposits and other segment deposits. - Average cost of deposits, excluding Brokered CDs, increased 3 basis points to 151 basis points, where non-interest-bearing deposits comprised
51% of total deposits excluding Brokered CDs.
Assets and Margin
- Net loans receivable increased
$78.0 million , or1.8% , to$4.5 billion . - Excluding a
$40.9 million package of low yielding residential loans marked-to-market and moved to held-for-sale, net loans receivable increased$118.9 million or2.7% . - Total PACE assessments grew
$10.6 million , or0.9% , to$1.2 billion . - Net interest income grew
$2.9 million , or4.2% , to$72.1 million . - Net interest margin increased 5 basis points to
3.51% .
Capital and Returns
- Tier 1 leverage ratio of
8.63% , increased by 21 basis points, and Common Equity Tier 1 ratio of13.82% . - Tangible common equity1 ratio of
8.14% , representing an eighth consecutive quarter of improvement. - Tangible book value per share1 increased
$1.69 , or8.2% , to$22.29 , and has increased$4.87 , or27.9% since September 2023. - Strong core return on average tangible common equity1 of
17.04% and core return on average assets1 of1.33% .
________________________
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.
Priscilla Sims Brown, President and Chief Executive Officer, commented, “Our third quarter financial results continue to demonstrate that Amalgamated remains positioned to achieve sustainable earnings and profitability. During the quarter, we delivered outstanding deposit and loan growth, strong profitability and returns, and a growing capital base that positions us to invest in our strategic initiatives which will sustain our growth into the future.”
Third Quarter Earnings
Net income for the third quarter of 2024 was
Core net income1 for the third quarter of 2024 was
Net interest income was
Net interest margin was
Provision for credit losses totaled an expense of
Non-interest income was
Non-interest expense for the third quarter of 2024 was
Our provision for income tax expense was
Balance Sheet Quarterly Summary
Total assets were
Total net loans receivable, at September 30, 2024 were
Total deposits at September 30, 2024 were
Nonperforming assets totaled
During the quarter, the allowance for credit losses on loans decreased
________________________
2 Refer to Terminology on page 6 for definitions of certain terms used in this release.
Capital Quarterly Summary
As of September 30, 2024, the Common Equity Tier 1 Capital ratio was
Tangible book value per share was
Conference Call
As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its third quarter 2024 results today, October 24, 2024 at 11:00am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. Third Quarter 2024 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13748697. The telephonic replay will be available until October 31, 2024.
Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of our website at https://ir.amalgamatedbank.com/. The online replay will remain available for a limited time beginning immediately following the call.
The presentation materials for the call can be accessed on the investor relations section of our website at https://ir.amalgamatedbank.com/.
About Amalgamated Financial Corp.
Amalgamated Financial Corp. is a Delaware public benefit corporation and a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank. Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated 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. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. As of September 30, 2024, our total assets were
Non-GAAP Financial Measures
This release (and the accompanying financial information and tables) refer to certain non-GAAP financial measures including, without limitation, “Core operating revenue,” “Core non-interest expense,” “Core non-interest income,” “Core net income,” “Tangible common equity,” “Average tangible common equity,” “Core return on average assets,” “Core return on average tangible common equity,” and “Core efficiency ratio.”
Our management utilizes this information to compare our operating performance for September 30, 2024 versus certain periods in 2024 and 2023 and to prepare internal projections. We believe these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of our operating performance. In addition, because intangible assets such as goodwill and other discrete items unrelated to our core business, which are excluded, vary extensively from company to company, we believe that the presentation of this information allows investors to more easily compare our results to those of other companies.
The presentation of non-GAAP financial information, however, is not intended to be considered in isolation or as a substitute for GAAP financial measures. We strongly encourage readers to review the GAAP financial measures included in this release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this release with other companies’ non-GAAP financial measures having the same or similar names. Reconciliations of non-GAAP financial disclosures to comparable GAAP measures found in this release are set forth in the final pages of this release and also may be viewed on our website, amalgamatedbank.com.
Terminology
Certain terms used in this release are defined as follows:
“Core efficiency ratio” is defined as “Core non-interest expense” divided by “Core operating revenue.” We believe the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income.
“Core net income” is defined as net income after tax excluding gains and losses on sales of securities, ICS One-Way Sell fee income, gains on the sale of owned property, costs related to branch closures, restructuring/severance costs, acquisition costs, tax credits and accelerated depreciation on solar equity investments, and taxes on notable pre-tax items. We believe the most directly comparable GAAP financial measure is net income.
“Core non-interest expense” is defined as total non-interest expense excluding costs related to branch closures, restructuring/severance, and acquisitions. We believe the most directly comparable GAAP financial measure is total non-interest expense.
“Core non-interest income” is defined as total non-interest income excluding gains and losses on sales of securities, ICS One-Way Sell fee income, gains on the sale of owned property, and tax credits and accelerated depreciation on solar equity investments. We believe the most directly comparable GAAP financial measure is non-interest income.
“Core operating revenue” is defined as total net interest income plus “core non-interest income”. We believe the most directly comparable GAAP financial measure is the total of net interest income and non-interest income.
“Core return on average assets” is defined as “Core net income” divided by average total assets. We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets.
“Core return on average tangible common equity” is defined as “Core net income” divided by average “tangible common equity.” We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders’ equity.
“Super-core deposits” are defined as total deposits from commercial and consumer customers, with a relationship length of greater than 5 years. We believe the most directly comparable GAAP financial measure is total deposits.
“Tangible assets” are defined as total assets excluding, as applicable, goodwill and core deposit intangibles. We believe the most directly comparable GAAP financial measure is total assets.
“Tangible common equity”, and “Tangible book value” are defined as stockholders’ equity excluding, as applicable, minority interests, preferred stock, goodwill and core deposit intangibles. We believe that the most directly comparable GAAP financial measure is total stockholders’ equity.
"Traditional securities portfolio" is defined as total investment securities excluding PACE assessments. We believe the most directly comparable GAAP financial measure is total investment securities.
Forward-Looking Statements
Statements included in this release that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not statements of historical or current fact nor are they assurances of future performance and generally can be identified by the use of forward-looking terminology, such as “may,” “approximately,” “will,” “anticipate,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “possible,” and “intend,” or the negative thereof as well as other similar words and expressions of the future. Forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict as to timing, extent, likelihood and degree of occurrence, which could cause our actual results to differ materially from those anticipated in or by such statements. Potential risks and uncertainties include, but are not limited to, the following: (i) uncertain conditions in the banking industry and in national, regional and local economies in our core markets, which may have an adverse impact on our business, operations and financial performance; (ii) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (iii) deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors; (iv) changes in our deposits, including an increase in uninsured deposits; (v) our ability to maintain sufficient liquidity to meet our deposit and debt obligations as they come due, which may require that we sell investment securities at a loss, negatively impacting our net income, earnings and capital; (vi) unfavorable conditions in the capital markets, which may cause declines in our stock price and the value of our investments; (vii) negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumer confidence, the financial condition of our borrowers and consumer spending habits, which may affect, among other things, the level of non-performing assets, charge-offs and provision expense; (viii) fluctuations or unanticipated changes in the interest rate environment including changes in net interest margin or changes in the yield curve that affect investments, loans or deposits; (ix) the general decline in the real estate and lending markets, particularly in commercial real estate in our market areas, and the effects of the enactment of or changes to rent-control and other similar regulations on multi-family housing; (x) changes in legislation, regulation, public policies, or administrative practices impacting the banking industry, including increased minimum capital requirements and other regulation in the aftermath of recent bank failures; (xi) the outcome of any legal proceedings that may be instituted against us (xii) our inability to achieve organic loan and deposit growth and the composition of that growth; (xiii) the composition of our loan portfolio, including any concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which we operate; (xiv) inaccuracy of the assumptions and estimates we make and policies that we implement in establishing our allowance for credit losses; (xv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (xvi) any matter that would cause us to conclude that there was impairment of any asset, including intangible assets; (xvii) limitations on our ability to declare and pay dividends; (xviii) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on our results, including as a result of compression to net interest margin; (xix) increased competition for experienced members of the workforce including executives in the banking industry; (xx) a failure in or breach of our operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xxi) increased regulatory scrutiny and exposure from the use of “big data” techniques, machine learning, and artificial intelligence; (xxii) downgrade in our credit rating; (xxiii) “greenwashing claims” against us and our Environmental, Social and Governance (“ESG”) products and increased scrutiny and political opposition to ESG and Diversity, Equity and Inclusion (“DEI”) practices; (xxiv) any unanticipated or greater than anticipated adverse conditions (including the possibility of earthquakes, wildfires, and other natural disasters)affecting the markets in which we operate; (xxv) physical and transitional risks related to climate change as they impact our business and the businesses that we finance; (xxvi) future repurchase of our shares through our common stock repurchase program; and (xxvii) descriptions of assumptions underlying or relating to any of the foregoing. Additional factors which could affect the forward-looking statements can be found in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at https://www.sec.gov/. We disclaim any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.
Investor Contact:
Jamie Lillis
Solebury Strategic Communications
shareholderrelations@amalgamatedbank.com
800-895-4172
Consolidated Statements of Income (unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| ($ in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| INTEREST AND DIVIDEND INCOME | |||||||||||||||||||
| Loans | $ | 54,110 | $ | 51,293 | $ | 49,578 | $ | 157,355 | $ | 139,744 | |||||||||
| Securities | 46,432 | 44,978 | 39,971 | 133,801 | 118,989 | ||||||||||||||
| Interest-bearing deposits in banks | 2,274 | 2,690 | 1,687 | 7,556 | 3,360 | ||||||||||||||
| Total interest and dividend income | 102,816 | 98,961 | 91,236 | 298,712 | 262,093 | ||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||
| Deposits | 30,105 | 28,882 | 23,158 | 84,879 | 55,809 | ||||||||||||||
| Borrowed funds | 604 | 887 | 4,350 | 4,497 | 12,292 | ||||||||||||||
| Total interest expense | 30,709 | 29,769 | 27,508 | 89,376 | 68,101 | ||||||||||||||
| NET INTEREST INCOME | 72,107 | 69,192 | 63,728 | 209,336 | 193,992 | ||||||||||||||
| Provision for credit losses | 1,849 | 3,161 | 2,014 | 6,598 | 10,913 | ||||||||||||||
| Net interest income after provision for credit losses | 70,258 | 66,031 | 61,714 | 202,738 | 183,079 | ||||||||||||||
| NON-INTEREST INCOME | |||||||||||||||||||
| Trust Department fees | 3,704 | 3,657 | 3,678 | 11,215 | 11,613 | ||||||||||||||
| Service charges on deposit accounts | 12,091 | 8,614 | 2,731 | 26,841 | 7,897 | ||||||||||||||
| Bank-owned life insurance income | 613 | 615 | 727 | 1,837 | 2,054 | ||||||||||||||
| Losses on sale of securities | (3,230 | ) | (2,691 | ) | (1,699 | ) | (8,695 | ) | (5,052 | ) | |||||||||
| Gain (loss) on sale of loans and changes in fair value on loans held-for-sale, net | (4,223 | ) | 69 | 26 | (4,107 | ) | 30 | ||||||||||||
| Equity method investments income (loss) | (823 | ) | (1,551 | ) | 550 | (301 | ) | 1,261 | |||||||||||
| Other income | 807 | 545 | 767 | 1,636 | 2,127 | ||||||||||||||
| Total non-interest income | 8,939 | 9,258 | 6,780 | 28,426 | 19,930 | ||||||||||||||
| NON-INTEREST EXPENSE | |||||||||||||||||||
| Compensation and employee benefits | 23,757 | 23,045 | 21,345 | 69,075 | 64,525 | ||||||||||||||
| Occupancy and depreciation | 3,423 | 3,379 | 3,349 | 9,705 | 10,184 | ||||||||||||||
| Professional fees | 2,575 | 2,332 | 2,222 | 7,284 | 7,211 | ||||||||||||||
| Data processing | 5,087 | 4,786 | 4,545 | 14,503 | 13,176 | ||||||||||||||
| Office maintenance and depreciation | 651 | 580 | 685 | 1,894 | 2,130 | ||||||||||||||
| Amortization of intangible assets | 183 | 182 | 222 | 548 | 666 | ||||||||||||||
| Advertising and promotion | 1,023 | 1,175 | 816 | 3,417 | 3,431 | ||||||||||||||
| Federal deposit insurance premiums | 900 | 1,050 | 1,200 | 3,000 | 3,018 | ||||||||||||||
| Other expense | 3,365 | 2,983 | 2,955 | 9,203 | 9,154 | ||||||||||||||
| Total non-interest expense | 40,964 | 39,512 | 37,339 | 118,629 | 113,495 | ||||||||||||||
| Income before income taxes | 38,233 | 35,777 | 31,155 | 112,535 | 89,514 | ||||||||||||||
| Income tax expense | 10,291 | 9,024 | 8,847 | 30,591 | 24,230 | ||||||||||||||
| Net income | $ | 27,942 | $ | 26,753 | $ | 22,308 | $ | 81,944 | $ | 65,284 | |||||||||
| Earnings per common share - basic | $ | 0.91 | $ | 0.88 | $ | 0.73 | $ | 2.68 | $ | 2.13 | |||||||||
| Earnings per common share - diluted | $ | 0.90 | $ | 0.87 | $ | 0.73 | $ | 2.65 | $ | 2.12 | |||||||||
Consolidated Statements of Financial Condition
| ($ in thousands) | September 30, 2024 | June 30, 2024 | December 31, 2023 | ||||||||
| Assets | (unaudited) | (unaudited) | |||||||||
| Cash and due from banks | $ | 3,946 | $ | 4,081 | $ | 2,856 | |||||
| Interest-bearing deposits in banks | 145,261 | 53,912 | 87,714 | ||||||||
| Total cash and cash equivalents | 149,207 | 57,993 | 90,570 | ||||||||
| Securities: | |||||||||||
| Available for sale, at fair value | |||||||||||
| Traditional securities | 1,617,045 | 1,581,338 | 1,429,739 | ||||||||
| Property Assessed Clean Energy (“PACE”) assessments | 149,500 | 112,923 | 53,303 | ||||||||
| 1,766,545 | 1,694,261 | 1,483,042 | |||||||||
| Held-to-maturity, at amortized cost: | |||||||||||
| Traditional securities, net of allowance for credit losses of | 583,788 | 606,013 | 620,232 | ||||||||
| PACE assessments, net of allowance for credit losses of | 1,028,588 | 1,054,569 | 1,076,602 | ||||||||
| 1,612,376 | 1,660,582 | 1,696,834 | |||||||||
| Loans held for sale | 38,623 | 1,926 | 1,817 | ||||||||
| Loans receivable, net of deferred loan origination costs | 4,547,903 | 4,471,839 | 4,411,319 | ||||||||
| Allowance for credit losses | (61,466 | ) | (63,444 | ) | (65,691 | ) | |||||
| Loans receivable, net | 4,486,437 | 4,408,395 | 4,345,628 | ||||||||
| Resell agreements | 74,883 | 137,461 | 50,000 | ||||||||
| Federal Home Loan Bank of New York ("FHLBNY") stock, at cost | 4,625 | 4,823 | 4,389 | ||||||||
| Accrued interest receivable | 54,268 | 52,575 | 55,484 | ||||||||
| Premises and equipment, net | 6,413 | 6,599 | 7,807 | ||||||||
| Bank-owned life insurance | 107,365 | 106,752 | 105,528 | ||||||||
| Right-of-use lease asset | 16,125 | 17,971 | 21,074 | ||||||||
| Deferred tax asset, net | 38,510 | 47,654 | 56,603 | ||||||||
| Goodwill | 12,936 | 12,936 | 12,936 | ||||||||
| Intangible assets, net | 1,669 | 1,852 | 2,217 | ||||||||
| Equity method investments | 11,514 | 12,710 | 13,024 | ||||||||
| Other assets | 32,144 | 26,214 | 25,371 | ||||||||
| Total assets | $ | 8,413,640 | $ | 8,250,704 | $ | 7,972,324 | |||||
| Liabilities | |||||||||||
| Deposits | $ | 7,594,564 | $ | 7,448,988 | $ | 7,011,988 | |||||
| Borrowings | 68,436 | 77,252 | 304,927 | ||||||||
| Operating leases | 22,292 | 24,784 | 30,646 | ||||||||
| Other liabilities | 30,016 | 53,568 | 39,399 | ||||||||
| Total liabilities | 7,715,308 | 7,604,592 | 7,386,960 | ||||||||
| Stockholders’ equity | |||||||||||
| Common stock, par value $.01 per share | 308 | 307 | 307 | ||||||||
| Additional paid-in capital | 287,167 | 286,021 | 288,232 | ||||||||
| Retained earnings | 459,398 | 435,202 | 388,033 | ||||||||
| Accumulated other comprehensive loss, net of income taxes | (46,702 | ) | (73,579 | ) | (86,004 | ) | |||||
| Treasury stock, at cost | (1,972 | ) | (1,972 | ) | (5,337 | ) | |||||
| Total Amalgamated Financial Corp. stockholders' equity | 698,199 | 645,979 | 585,231 | ||||||||
| Noncontrolling interests | 133 | 133 | 133 | ||||||||
| Total stockholders' equity | 698,332 | 646,112 | 585,364 | ||||||||
| Total liabilities and stockholders’ equity | $ | 8,413,640 | $ | 8,250,704 | $ | 7,972,324 | |||||
Select Financial Data
| As of and for the | As of and for the | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| (Shares in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Selected Financial Ratios and Other Data: | |||||||||||||||||||
| Earnings per share | |||||||||||||||||||
| Basic | $ | 0.91 | $ | 0.88 | $ | 0.73 | $ | 2.68 | $ | 2.13 | |||||||||
| Diluted | 0.90 | 0.87 | 0.73 | 2.65 | 2.12 | ||||||||||||||
| Core net income (non-GAAP) | |||||||||||||||||||
| Basic | $ | 0.91 | $ | 0.86 | $ | 0.76 | $ | 2.61 | $ | 2.23 | |||||||||
| Diluted | 0.91 | 0.85 | 0.76 | 2.59 | 2.22 | ||||||||||||||
| Book value per common share (excluding minority interest) | $ | 22.77 | $ | 21.09 | $ | 17.93 | $ | 22.77 | $ | 17.93 | |||||||||
| Tangible book value per share (non-GAAP) | $ | 22.29 | $ | 20.61 | $ | 17.43 | $ | 22.29 | $ | 17.43 | |||||||||
| Common shares outstanding, par value $.01 per share(1) | 30,663 | 30,630 | 30,459 | 30,663 | 30,459 | ||||||||||||||
| Weighted average common shares outstanding, basic | 30,646 | 30,551 | 30,481 | 30,558 | 30,601 | ||||||||||||||
| Weighted average common shares outstanding, diluted | 30,911 | 30,832 | 30,590 | 30,868 | 30,738 | ||||||||||||||
| (1) 70,000,000 shares authorized; 30,776,163, 30,743,666, and 30,736,141 shares issued for the periods ended September 30, 2024, June 30, 2024, and September 30, 2023 respectively, and 30,662,883, 30,630,386, and 30,458,781 shares outstanding for the periods ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. | |||||||||||||||||||
Select Financial Data
| As of and for the | As of and for the | |||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||
| September 30, | June 30, | September 30, | September 30, | |||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||
| Selected Performance Metrics: | ||||||||||||||
| Return on average assets | 1.32 | % | 1.30 | % | 1.12 | % | 1.33 | % | 1.11 | % | ||||
| Core return on average assets (non-GAAP) | 1.33 | % | 1.27 | % | 1.17 | % | 1.29 | % | 1.17 | % | ||||
| Return on average equity | 16.63 | % | 17.27 | % | 16.43 | % | 17.35 | % | 16.69 | % | ||||
| Core return on average tangible common equity (non-GAAP) | 17.04 | % | 17.34 | % | 17.67 | % | 17.31 | % | 18.02 | % | ||||
| Average equity to average assets | 7.96 | % | 7.53 | % | 6.82 | % | 7.65 | % | 6.67 | % | ||||
| Tangible common equity to tangible assets (non-GAAP) | 8.14 | % | 7.66 | % | 6.72 | % | 8.14 | % | 6.72 | % | ||||
| Loan yield | 4.79 | % | 4.68 | % | 4.56 | % | 4.74 | % | 4.43 | % | ||||
| Securities yield | 5.25 | % | 5.22 | % | 4.94 | % | 5.23 | % | 4.84 | % | ||||
| Deposit cost | 1.58 | % | 1.55 | % | 1.33 | % | 1.53 | % | 1.08 | % | ||||
| Net interest margin | 3.51 | % | 3.46 | % | 3.29 | % | 3.48 | % | 3.40 | % | ||||
| Efficiency ratio (1) | 50.54 | % | 50.37 | % | 52.96 | % | 49.89 | % | 53.05 | % | ||||
| Core efficiency ratio (non-GAAP) | 50.35 | % | 50.80 | % | 51.71 | % | 50.52 | % | 51.88 | % | ||||
| Asset Quality Ratios: | ||||||||||||||
| Nonaccrual loans to total loans | 0.61 | % | 0.78 | % | 0.79 | % | 0.61 | % | 0.79 | % | ||||
| Nonperforming assets to total assets | 0.34 | % | 0.43 | % | 0.46 | % | 0.34 | % | 0.46 | % | ||||
| Allowance for credit losses on loans to nonaccrual loans | 222.30 | % | 182.83 | % | 197.58 | % | 222.30 | % | 197.58 | % | ||||
| Allowance for credit losses on loans to total loans | 1.35 | % | 1.42 | % | 1.56 | % | 1.35 | % | 1.56 | % | ||||
| Annualized net charge-offs to average loans | 0.61 | % | 0.25 | % | 0.27 | % | 0.35 | % | 0.27 | % | ||||
| Capital Ratios: | ||||||||||||||
| Tier 1 leverage capital ratio | 8.63 | % | 8.42 | % | 7.89 | % | 8.63 | % | 7.89 | % | ||||
| Tier 1 risk-based capital ratio | 13.82 | % | 13.48 | % | 12.63 | % | 13.82 | % | 12.63 | % | ||||
| Total risk-based capital ratio | 16.25 | % | 16.04 | % | 15.28 | % | 16.25 | % | 15.28 | % | ||||
| Common equity tier 1 capital ratio | 13.82 | % | 13.48 | % | 12.63 | % | 13.82 | % | 12.63 | % | ||||
| (1) Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income | ||||||||||||||
Loan and PACE Assessments Portfolio Composition
| (In thousands) | At September 30, 2024 | At June 30, 2024 | At September 30, 2023 | |||||||||||||||||
| Amount | % of total | Amount | % of total | Amount | % of total | |||||||||||||||
| Commercial portfolio: | ||||||||||||||||||||
| Commercial and industrial | $ | 1,058,376 | 23.3 | % | $ | 1,012,400 | 22.6 | % | $ | 1,050,355 | 24.1 | % | ||||||||
| Multifamily | 1,291,380 | 28.4 | % | 1,230,545 | 27.5 | % | 1,094,955 | 25.1 | % | |||||||||||
| Commercial real estate | 415,077 | 9.1 | % | 377,484 | 8.4 | % | 324,139 | 7.4 | % | |||||||||||
| Construction and land development | 22,224 | 0.5 | % | 23,254 | 0.5 | % | 28,326 | 0.6 | % | |||||||||||
| Total commercial portfolio | 2,787,057 | 61.3 | % | 2,643,683 | 59.0 | % | 2,497,775 | 57.2 | % | |||||||||||
| Retail portfolio: | ||||||||||||||||||||
| Residential real estate lending | 1,350,347 | 29.7 | % | 1,404,624 | 31.4 | % | 1,409,530 | 32.3 | % | |||||||||||
| Consumer solar | 374,499 | 8.2 | % | 385,567 | 8.6 | % | 415,324 | 9.5 | % | |||||||||||
| Consumer and other | 36,000 | 0.8 | % | 37,965 | 1.0 | % | 42,116 | 1.0 | % | |||||||||||
| Total retail portfolio | 1,760,846 | 38.7 | % | 1,828,156 | 41.0 | % | 1,866,970 | 42.8 | % | |||||||||||
| Total loans held for investment | 4,547,903 | 100.0 | % | 4,471,839 | 100.0 | % | 4,364,745 | 100.0 | % | |||||||||||
| Allowance for credit losses | (61,466 | ) | (63,444 | ) | (67,815 | ) | ||||||||||||||
| Loans receivable, net | $ | 4,486,437 | $ | 4,408,395 | $ | 4,296,930 | ||||||||||||||
| PACE assessments: | ||||||||||||||||||||
| Available for sale, at fair value | ||||||||||||||||||||
| Residential PACE assessments | 149,500 | 12.7 | % | 112,923 | 9.7 | % | 38,526 | 3.5 | % | |||||||||||
| Held-to-maturity, at amortized cost | ||||||||||||||||||||
| Commercial PACE assessments | 256,128 | 21.7 | % | 256,663 | 22.0 | % | 270,020 | 24.3 | % | |||||||||||
| Residential PACE assessments | 773,101 | 65.6 | % | 798,561 | 68.4 | % | 800,484 | 72.2 | % | |||||||||||
| Total Held-to-maturity PACE assessments | 1,029,229 | 87.3 | % | 1,055,224 | 90.4 | % | 1,070,504 | 96.5 | % | |||||||||||
| Total PACE assessments | 1,178,729 | 100.0 | % | 1,168,147 | 100.0 | % | 1,109,030 | 100.0 | % | |||||||||||
| Allowance for credit losses | (641 | ) | (655 | ) | (670 | ) | ||||||||||||||
| Total PACE assessments, net | $ | 1,178,088 | $ | 1,167,492 | $ | 1,108,360 | ||||||||||||||
| Loans receivable, net and total PACE assessments, net as a % of Deposits | 74.6 | % | 74.9 | % | 77.3 | % | ||||||||||||||
| Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs | 75.6 | % | 76.4 | % | 81.9 | % | ||||||||||||||
Net Interest Income Analysis
| Three Months Ended | ||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||||||||||||||||||
| (In thousands) | Average Balance | Income / Expense | Yield / Rate | Average Balance | Income / Expense | Yield / Rate | Average Balance | Income / Expense | Yield / Rate | |||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||
| Interest-bearing deposits in banks | $ | 182,981 | $ | 2,274 | 4.94 | % | $ | 213,725 | $ | 2,690 | 5.06 | % | $ | 170,830 | $ | 1,687 | 3.92 | % | ||||||||
| Securities(1) | 3,388,580 | 44,678 | 5.25 | % | 3,308,881 | 42,937 | 5.22 | % | 3,208,334 | 39,971 | 4.94 | % | ||||||||||||||
| Resell agreements | 104,933 | 1,754 | 6.65 | % | 122,618 | 2,041 | 6.69 | % | — | — | 0.00 | % | ||||||||||||||
| Loans receivable, net (2) | 4,493,520 | 54,110 | 4.79 | % | 4,406,843 | 51,293 | 4.68 | % | 4,314,767 | 49,578 | 4.56 | % | ||||||||||||||
| Total interest-earning assets | 8,170,014 | 102,816 | 5.01 | % | 8,052,067 | 98,961 | 4.94 | % | 7,693,931 | 91,236 | 4.70 | % | ||||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||||||||
| Cash and due from banks | 6,144 | 6,371 | 6,129 | |||||||||||||||||||||||
| Other assets | 217,332 | 217,578 | 204,506 | |||||||||||||||||||||||
| Total assets | $ | 8,393,490 | $ | 8,276,016 | $ | 7,904,566 | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||
| Savings, NOW and money market deposits | $ | 3,506,499 | $ | 26,168 | 2.97 | % | $ | 3,729,858 | $ | 24,992 | 2.69 | % | $ | 3,446,027 | $ | 17,157 | 1.98 | % | ||||||||
| Time deposits | 223,337 | 2,148 | 3.83 | % | 210,565 | 1,898 | 3.63 | % | 176,171 | 1,122 | 2.53 | % | ||||||||||||||
| Brokered CDs | 131,103 | 1,789 | 5.43 | % | 156,086 | 1,992 | 5.13 | % | 371,329 | 4,879 | 5.21 | % | ||||||||||||||
| Total interest-bearing deposits | 3,860,939 | 30,105 | 3.10 | % | 4,096,509 | 28,882 | 2.84 | % | 3,993,527 | 23,158 | 2.30 | % | ||||||||||||||
| Borrowings | 71,948 | 604 | 3.34 | % | 104,560 | 887 | 3.41 | % | 376,585 | 4,350 | 4.58 | % | ||||||||||||||
| Total interest-bearing liabilities | 3,932,887 | 30,709 | 3.11 | % | 4,201,069 | 29,769 | 2.85 | % | 4,370,112 | 27,508 | 2.50 | % | ||||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||||||||
| Demand and transaction deposits | 3,721,398 | 3,390,941 | 2,920,737 | |||||||||||||||||||||||
| Other liabilities | 70,804 | 60,982 | 74,964 | |||||||||||||||||||||||
| Total liabilities | 7,725,089 | 7,652,992 | 7,365,813 | |||||||||||||||||||||||
| Stockholders' equity | 668,401 | 623,024 | 538,753 | |||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 8,393,490 | $ | 8,276,016 | $ | 7,904,566 | ||||||||||||||||||||
| Net interest income / interest rate spread | $ | 72,107 | 1.90 | % | $ | 69,192 | 2.09 | % | $ | 63,728 | 2.20 | % | ||||||||||||||
| Net interest-earning assets / net interest margin | $ | 4,237,127 | 3.51 | % | $ | 3,850,998 | 3.46 | % | $ | 3,323,819 | 3.29 | % | ||||||||||||||
| Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs | $ | 7,451,234 | 1.51 | % | $ | 7,331,364 | 1.48 | % | $ | 6,542,935 | 1.11 | % | ||||||||||||||
| Total deposits / total cost of deposits | $ | 7,582,337 | 1.58 | % | $ | 7,487,450 | 1.55 | % | $ | 6,914,264 | 1.33 | % | ||||||||||||||
| Total funding / total cost of funds | $ | 7,654,285 | 1.60 | % | $ | 7,592,010 | 1.58 | % | $ | 7,290,849 | 1.50 | % | ||||||||||||||
(1) Includes FHLBNY stock in the average balance, and dividend income on FHLBNY stock in interest income.
(2) No material impact of prepayment penalty interest income in 3Q2024, 2Q2024, or 3Q2023
Net Interest Income Analysis
| Nine Months Ended | |||||||||||||||||
| September 30, 2024 | September 30, 2023 | ||||||||||||||||
| (In thousands) | Average Balance | Income / Expense | Yield / Rate | Average Balance | Income / Expense | Yield / Rate | |||||||||||
| Interest-earning assets: | |||||||||||||||||
| Interest-bearing deposits in banks | $ | 200,627 | $ | 7,556 | 5.03 | % | $ | 125,560 | $ | 3,360 | 3.58 | % | |||||
| Securities | 3,289,635 | 128,679 | 5.23 | % | 3,276,065 | 118,557 | 4.84 | % | |||||||||
| Resell agreements | 102,197 | 5,122 | 6.69 | % | 8,003 | 432 | 7.22 | % | |||||||||
| Total loans, net (1)(2) | 4,431,801 | 157,355 | 4.74 | % | 4,216,391 | 139,744 | 4.43 | % | |||||||||
| Total interest-earning assets | 8,024,260 | 298,712 | 4.97 | % | 7,626,019 | 262,093 | 4.60 | % | |||||||||
| Non-interest-earning assets: | |||||||||||||||||
| Cash and due from banks | 5,862 | 5,067 | |||||||||||||||
| Other assets | 219,096 | 210,112 | |||||||||||||||
| Total assets | $ | 8,249,218 | $ | 7,841,198 | |||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| Savings, NOW and money market deposits | $ | 3,608,927 | $ | 73,033 | 2.70 | % | $ | 3,248,278 | $ | 40,010 | 1.65 | % | |||||
| Time deposits | 207,374 | 5,622 | 3.62 | % | 161,756 | 2,030 | 1.68 | % | |||||||||
| Brokered CDs | 159,041 | 6,224 | 5.23 | % | 383,521 | 13,769 | 4.80 | % | |||||||||
| Total interest-bearing deposits | 3,975,342 | 84,879 | 2.85 | % | 3,793,555 | 55,809 | 1.97 | % | |||||||||
| Borrowings | 154,564 | 4,497 | 3.89 | % | 365,262 | 12,292 | 4.50 | % | |||||||||
| Total interest-bearing liabilities | 4,129,906 | 89,376 | 2.89 | % | 4,158,817 | 68,101 | 2.19 | % | |||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||
| Demand and transaction deposits | 3,417,970 | 3,086,482 | |||||||||||||||
| Other liabilities | 70,476 | 72,821 | |||||||||||||||
| Total liabilities | 7,618,352 | 7,318,120 | |||||||||||||||
| Stockholders' equity | 630,866 | 523,078 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 8,249,218 | $ | 7,841,198 | |||||||||||||
| Net interest income / interest rate spread | $ | 209,336 | 2.08 | % | $ | 193,992 | 2.41 | % | |||||||||
| Net interest-earning assets / net interest margin | $ | 3,894,354 | 3.48 | % | $ | 3,467,202 | 3.40 | % | |||||||||
| Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs | $ | 7,234,271 | 1.45 | % | $ | 6,496,516 | 0.87 | % | |||||||||
| Total deposits / total cost of deposits | $ | 7,393,312 | 1.53 | % | $ | 6,880,037 | 1.08 | % | |||||||||
| Total funding / total cost of funds | $ | 7,547,876 | 1.58 | % | $ | 7,245,299 | 1.26 | % | |||||||||
(1) Includes Federal Home Loan Bank (FHLB) stock in the average balance, and dividend income on FHLB stock in interest income.
(2) Includes prepayment penalty interest income in September YTD 2024 and September YTD 2023 of
Deposit Portfolio Composition
| Three Months Ended | |||||||||||||||||
| (In thousands) | September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||||||||
| Ending Balance | Average Balance | Ending Balance | Average Balance | Ending Balance | Average Balance | ||||||||||||
| Non-interest-bearing demand deposit accounts | $ | 3,801,834 | $ | 3,721,398 | $ | 3,445,068 | $ | 3,390,941 | $ | 2,808,300 | $ | 2,920,737 | |||||
| NOW accounts | 186,557 | 188,250 | 192,452 | 191,253 | 192,654 | 192,883 | |||||||||||
| Money market deposit accounts | 2,959,264 | 2,986,434 | 3,093,644 | 3,202,365 | 3,059,982 | 2,893,930 | |||||||||||
| Savings accounts | 327,935 | 331,816 | 336,943 | 336,240 | 357,470 | 359,214 | |||||||||||
| Time deposits | 216,901 | 223,337 | 227,437 | 210,565 | 180,529 | 176,171 | |||||||||||
| Brokered certificates of deposit ("CDs") | 102,073 | 131,103 | 153,444 | 156,086 | 391,919 | 371,329 | |||||||||||
| Total deposits | $ | 7,594,564 | $ | 7,582,338 | $ | 7,448,988 | $ | 7,487,450 | $ | 6,990,854 | $ | 6,914,264 | |||||
| Total deposits excluding Brokered CDs | $ | 7,492,491 | $ | 7,451,235 | $ | 7,295,544 | $ | 7,331,364 | $ | 6,598,935 | $ | 6,542,935 | |||||
| Three Months Ended | |||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||
| (In thousands) | Average Rate Paid(1) | Cost of Funds | Average Rate Paid(1) | Cost of Funds | Average Rate Paid(1) | Cost of Funds | |||||||||||
| Non-interest bearing demand deposit accounts | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||
| NOW accounts | 0.90 | % | 1.09 | % | 1.07 | % | 1.07 | % | 0.95 | % | 1.01 | % | |||||
| Money market deposit accounts | 3.00 | % | 3.24 | % | 3.08 | % | 2.93 | % | 2.31 | % | 2.14 | % | |||||
| Savings accounts | 1.42 | % | 1.64 | % | 1.67 | % | 1.37 | % | 1.16 | % | 1.14 | % | |||||
| Time deposits | 3.83 | % | 3.83 | % | 3.50 | % | 3.63 | % | 2.88 | % | 2.53 | % | |||||
| Brokered CDs | 4.89 | % | 5.43 | % | 4.98 | % | 5.13 | % | 5.14 | % | 5.21 | % | |||||
| Total deposits | 1.43 | % | 1.58 | % | 1.59 | % | 1.55 | % | 1.46 | % | 1.33 | % | |||||
| Interest-bearing deposits excluding Brokered CDs | 2.80 | % | 3.02 | % | 2.88 | % | 2.74 | % | 2.16 | % | 2.00 | % | |||||
(1) Average rate paid is calculated as the weighted average of spot rates on deposit accounts. Off-balance sheet deposits are excluded from all calculations shown.
Asset Quality
| (In thousands) | September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||
| Loans 90 days past due and accruing | $ | — | $ | — | $ | — | |||||
| Nonaccrual loans held for sale | 989 | 989 | 2,189 | ||||||||
| Nonaccrual loans - Commercial | 17,108 | 23,778 | 28,041 | ||||||||
| Nonaccrual loans - Retail | 10,542 | 10,924 | 6,283 | ||||||||
| Nonaccrual securities | 8 | 29 | 31 | ||||||||
| Total nonperforming assets | $ | 28,647 | $ | 35,720 | $ | 36,544 | |||||
| Nonaccrual loans: | |||||||||||
| Commercial and industrial | $ | 1,849 | $ | 8,428 | $ | 7,575 | |||||
| Multifamily | — | — | — | ||||||||
| Commercial real estate | 4,146 | 4,231 | 4,575 | ||||||||
| Construction and land development | 11,113 | 11,119 | 15,891 | ||||||||
| Total commercial portfolio | 17,108 | 23,778 | 28,041 | ||||||||
| Residential real estate lending | 7,578 | 7,756 | 3,009 | ||||||||
| Consumer solar | 2,848 | 2,794 | 2,817 | ||||||||
| Consumer and other | 116 | 374 | 457 | ||||||||
| Total retail portfolio | 10,542 | 10,924 | 6,283 | ||||||||
| Total nonaccrual loans | $ | 27,650 | $ | 34,702 | $ | 34,324 | |||||
Credit Quality
| September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||
| ($ in thousands) | |||||||||||
| Criticized and classified loans | |||||||||||
| Commercial and industrial | $ | 45,329 | $ | 53,940 | $ | 45,959 | |||||
| Multifamily | 13,386 | 10,242 | 10,999 | ||||||||
| Commercial real estate | 8,186 | 8,311 | 8,762 | ||||||||
| Construction and land development | 11,113 | 11,119 | 15,891 | ||||||||
| Residential real estate lending | 7,578 | 7,756 | 3,009 | ||||||||
| Consumer solar | 2,848 | 2,794 | 2,817 | ||||||||
| Consumer and other | 116 | 374 | 457 | ||||||||
| Total loans | $ | 88,556 | $ | 94,536 | $ | 87,894 | |||||
| Criticized and classified loans to total loans | ||||||||
| Commercial and industrial | 1.00 | % | 1.21 | % | 1.05 | % | ||
| Multifamily | 0.29 | % | 0.23 | % | 0.25 | % | ||
| Commercial real estate | 0.18 | % | 0.19 | % | 0.20 | % | ||
| Construction and land development | 0.24 | % | 0.25 | % | 0.36 | % | ||
| Residential real estate lending | 0.17 | % | 0.17 | % | 0.07 | % | ||
| Consumer solar | 0.06 | % | 0.06 | % | 0.06 | % | ||
| Consumer and other | — | % | 0.01 | % | 0.01 | % | ||
| Total loans | 1.94 | % | 2.12 | % | 2.00 | % | ||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||
| Annualized net charge-offs (recoveries) to average loans | ACL to total portfolio balance | Annualized net charge-offs (recoveries) to average loans | ACL to total portfolio balance | Annualized net charge-offs (recoveries) to average loans | ACL to total portfolio balance | ||||||||||||
| Commercial and industrial | 2.14 | % | 1.01 | % | 0.32 | % | 1.44 | % | — | % | 1.71 | % | |||||
| Multifamily | — | % | 0.37 | % | — | % | 0.38 | % | 0.45 | % | 0.46 | % | |||||
| Commercial real estate | — | % | 0.40 | % | — | % | 0.40 | % | — | % | 0.64 | % | |||||
| Construction and land development | — | % | 3.73 | % | — | % | 3.60 | % | — | % | 3.68 | % | |||||
| Residential real estate lending | (0.03 | )% | 0.91 | % | (0.18 | )% | 0.88 | % | (0.07 | )% | 1.13 | % | |||||
| Consumer solar | 1.58 | % | 7.68 | % | 2.57 | % | 7.00 | % | 1.88 | % | 6.72 | % | |||||
| Consumer and other | 1.05 | % | 6.44 | % | 0.01 | % | 6.49 | % | 0.04 | % | 6.00 | % | |||||
| Total loans | 0.61 | % | 1.35 | % | 0.25 | % | 1.42 | % | 0.27 | % | 1.60 | % | |||||
Reconciliation of GAAP to Non-GAAP Financial Measures
The information provided below presents a reconciliation of each of our non-GAAP financial measures to the most directly comparable GAAP financial measure.
| As of and for the | As of and for the | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| (in thousands) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||||
| Core operating revenue | |||||||||||||||||||
| Net Interest Income (GAAP) | $ | 72,107 | $ | 69,192 | $ | 63,728 | $ | 209,336 | $ | 193,992 | |||||||||
| Non-interest income (GAAP) | 8,939 | 9,258 | 6,780 | 28,426 | 19,930 | ||||||||||||||
| Add: Securities loss | 3,230 | 2,691 | 1,699 | 8,695 | 5,052 | ||||||||||||||
| Less: ICS One-Way Sell Fee Income(1) | (8,085 | ) | (4,859 | ) | — | (15,847 | ) | — | |||||||||||
| Less: Changes in fair value of loans held-for-sale | 4,265 | — | — | 4,265 | — | ||||||||||||||
| Less: Subdebt repurchase gain(2) | (669 | ) | (406 | ) | (637 | ) | (1,076 | ) | (1,417 | ) | |||||||||
| Add: Tax (credits) depreciation on solar investments(3) | 1,089 | 1,815 | — | 1,095 | — | ||||||||||||||
| Core operating revenue (non-GAAP) | 80,876 | 77,691 | 71,570 | 234,894 | 217,557 | ||||||||||||||
| Core non-interest expense | |||||||||||||||||||
| Non-interest expense (GAAP) | $ | 40,964 | $ | 39,512 | $ | 37,339 | $ | 118,629 | $ | 113,495 | |||||||||
| Add: Gain on settlement of lease termination(4) | — | — | — | 499 | — | ||||||||||||||
| Less: Severance costs(5) | (241 | ) | (44 | ) | (332 | ) | (471 | ) | (617 | ) | |||||||||
| Core non-interest expense (non-GAAP) | 40,723 | 39,468 | 37,007 | 118,657 | 112,878 | ||||||||||||||
| Core net income | |||||||||||||||||||
| Net Income (GAAP) | $ | 27,942 | $ | 26,753 | $ | 22,308 | $ | 81,944 | $ | 65,284 | |||||||||
| Add: Securities loss | 3,230 | 2,691 | 1,699 | 8,695 | 5,052 | ||||||||||||||
| Less: ICS One-Way Sell Fee Income(1) | (8,085 | ) | (4,859 | ) | — | (15,847 | ) | — | |||||||||||
| Less: Changes in fair value of loans held-for-sale | 4,265 | — | — | 4,265 | — | ||||||||||||||
| Less: Gain on settlement of lease termination(4) | — | — | — | (499 | ) | — | |||||||||||||
| Less: Subdebt repurchase gain(2) | (669 | ) | (406 | ) | (637 | ) | (1,076 | ) | (1,417 | ) | |||||||||
| Add: Severance costs(5) | 241 | 44 | 332 | 471 | 617 | ||||||||||||||
| Add: Tax (credits) depreciation on solar investments(3) | 1,089 | 1,815 | — | 1,095 | — | ||||||||||||||
| Less: Tax on notable items | (19 | ) | 180 | (396 | ) | 764 | (1,151 | ) | |||||||||||
| Core net income (non-GAAP) | 27,994 | 26,218 | 23,306 | 79,812 | 68,385 | ||||||||||||||
| Tangible common equity | |||||||||||||||||||
| Stockholders' equity (GAAP) | $ | 698,332 | $ | 646,112 | $ | 546,291 | $ | 698,332 | $ | 546,291 | |||||||||
| Less: Minority interest | (133 | ) | (133 | ) | (133 | ) | (133 | ) | (133 | ) | |||||||||
| Less: Goodwill | (12,936 | ) | (12,936 | ) | (12,936 | ) | (12,936 | ) | (12,936 | ) | |||||||||
| Less: Core deposit intangible | (1,669 | ) | (1,852 | ) | (2,439 | ) | (1,669 | ) | (2,439 | ) | |||||||||
| Tangible common equity (non-GAAP) | 683,594 | 631,191 | 530,783 | 683,594 | 530,783 | ||||||||||||||
| Average tangible common equity | |||||||||||||||||||
| Average stockholders' equity (GAAP) | $ | 668,401 | $ | 623,024 | $ | 538,753 | $ | 630,866 | $ | 523,078 | |||||||||
| Less: Minority interest | (133 | ) | (133 | ) | (133 | ) | (133 | ) | (133 | ) | |||||||||
| Less: Goodwill | (12,936 | ) | (12,936 | ) | (12,936 | ) | (12,936 | ) | (12,936 | ) | |||||||||
| Less: Core deposit intangible | (1,759 | ) | (1,941 | ) | (2,547 | ) | (1,940 | ) | (2,768 | ) | |||||||||
| Average tangible common equity (non-GAAP) | 653,573 | 608,014 | 523,137 | 615,857 | 507,241 | ||||||||||||||
(1) Included in service charges on deposit accounts in the Consolidated Statements of Income
(2) Included in other income in the Consolidated Statements of Income
(3) Included in equity method investments income in the Consolidated Statements of Income
(4) Included in occupancy and depreciation in the Consolidated Statements of Income
(5) Included in compensation and employee benefits in the Consolidated Statements of Income
Reconciliation of GAAP to Non-GAAP Financial Measures
The information provided below presents a reconciliation of each of our non-GAAP financial measures to the most directly comparable GAAP financial measure.
| As of and for the | As of and for the | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| (in thousands) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||||
| Core return on average assets | |||||||||||||||||||
| Numerator: Core net income (non-GAAP) | $ | 27,994 | $ | 26,218 | $ | 23,306 | $ | 79,812 | $ | 68,385 | |||||||||
| Denominator: Total average assets (GAAP) | $ | 8,393,490 | $ | 8,276,016 | $ | 7,904,566 | 8,249,218 | 7,841,198 | |||||||||||
| Core return on average assets (non-GAAP) | 1.33 | % | 1.27 | % | 1.17 | % | 1.29 | % | 1.17 | % | |||||||||
| Core return on average tangible common equity | |||||||||||||||||||
| Numerator: Core net income (non-GAAP) | $ | 27,994 | $ | 26,218 | $ | 23,306 | $ | 79,812 | $ | 68,385 | |||||||||
| Denominator: Average tangible common equity (non-GAAP) | $ | 653,573 | $ | 608,014 | $ | 523,137 | 615,857 | 507,241 | |||||||||||
| Core return on average tangible common equity (non-GAAP) | 17.04 | % | 17.34 | % | 17.67 | % | 17.31 | % | 18.02 | % | |||||||||
| Core efficiency ratio | |||||||||||||||||||
| Numerator: Core non-interest expense (non-GAAP) | $ | 40,723 | $ | 39,468 | $ | 37,007 | $ | 118,657 | $ | 112,878 | |||||||||
| Denominator: Core operating revenue (non-GAAP) | 80,876 | 77,691 | 71,570 | 234,894 | 217,557 | ||||||||||||||
| Core efficiency ratio (non-GAAP) | 50.35 | % | 50.80 | % | 51.71 | % | 50.52 | % | 51.88 | % | |||||||||
FAQ
What was Amalgamated Financial's (AMAL) net income for Q3 2024?
How much did AMAL's deposits grow in Q3 2024?
What was AMAL's net interest margin in Q3 2024?
How much did AMAL's political deposits grow in Q3 2024?
