Amalgamated Financial Corp. Reports Second Quarter 2024 Financial Results; Continued Stellar Deposit Growth; Return on Average Assets of 1.30%
Second Quarter 2024 Highlights (on a linked quarter basis)
- Net income of
$26.8 million , or$0.87 per diluted share, compared to$27.2 million , or$0.89 per diluted share. - Core net income1 of
$26.2 million , or$0.85 per diluted share, compared to$25.6 million , or$0.83 per diluted share.
Deposits and Liquidity
- Total deposits increased
$143.2 million , or 2.0%, to$7.4 billion including an$8.8 million decline in Brokered CDs. - Excluding Brokered CDs, on-balance sheet deposits increased
$152.0 million , or 2.1%, to$7 .3 billion. - Political deposits increased
$292.3 million , or 20%, to$1.7 billion , which includes both on and off-balance sheet deposits. - Off-balance sheet deposits increased
$607.0 million , or 133%, to$1.1 billion , comprised of both transactional political deposits and excess non-political deposits. - Average cost of deposits, excluding Brokered CDs, increased 12 basis points to 148 basis points, where non-interest-bearing deposits comprised 47% of total deposits, excluding Brokered CDs, increasing from the prior quarter.
Assets and Margin
- Net loans receivable increased
$49 .0 million, or 1.1%, to$4.4 billion . - Total PACE assessments grew
$27 .4 million, or 2.4%, to$1.2 billion . - Net interest income grew
$1 .2 million, or 1.7%, to$69.2 million . - Net interest margin compressed 3 basis points to 3.46%, impacted by an unanticipated premium acceleration.
Capital and Returns
- Tier 1 leverage ratio of 8.42%, increasing 13 basis points, and Common Equity Tier 1 ratio of 13.48%.
- Tangible common equity1 ratio of 7.66%, representing a seventh consecutive quarter of improvement.
- Tangible book value per share1 increased
$0.88 , or 4.5%, to$20.61 , and has increased$3.83 , or 22.8% sinceJune 2023 . - Strong core return on average tangible common equity1 of 17.34% and core return on average assets1 of 1.27%
________________________
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.
Second Quarter Earnings
Net income for the second quarter of 2024 was
Core net income1 for the second quarter of 2024 was
Net interest income was
Net interest margin was 3.46% for the second quarter of 2024, a decrease of 3 basis points from 3.49% in the first quarter of 2024. The decrease is attributable to
Provision for credit losses totaled an expense of
Non-interest income was
Non-interest expense for the second quarter of 2024 was
Our provision for income tax expense was
Balance Sheet Quarterly Summary
Total assets were
Total net loans receivable, at
Total deposits at
Nonperforming assets totaled
During the quarter, the allowance for credit losses on loans decreased
________________________
2 Refer to Terminology on page 5 for definitions of certain terms used in this release.
Capital Quarterly Summary
As of
Tangible book value per share was
Conference Call
As previously announced,
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
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
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 generally can be identified through the use of forward-looking terminology such as “may,” “will,” “anticipate,” “aspire,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “in the future,” “may” and “intend,” as well as other similar words and expressions of the future. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any or all of which could cause actual results to differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: (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) unfavorable conditions in the capital markets, which may cause declines in our stock price and the value of our investments; (vi) 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; (vii) the rate of growth (or lack thereof) in the economy and employment levels, as well as general business and economic conditions, coupled with the risk that adverse conditions may be greater than anticipated in the markets that we serve; (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) potential deterioration in real estate collateral values; (x) changes in legislation, regulation, public policies, or administrative practices impacting the banking industry, including increased regulation and
Investor Contact:
shareholderrelations@amalgamatedbank.com
800-895-4172
Consolidated Statements of Income (unaudited)
Three Months Ended | Six Months Ended | ||||||||||||||||||
($ in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
INTEREST AND DIVIDEND INCOME | |||||||||||||||||||
Loans | $ | 51,293 | $ | 51,952 | $ | 45,360 | $ | 103,245 | $ | 90,166 | |||||||||
Securities | 44,978 | 42,390 | 39,506 | 87,368 | 79,018 | ||||||||||||||
Interest-bearing deposits in banks | 2,690 | 2,592 | 1,056 | 5,282 | 1,673 | ||||||||||||||
Total interest and dividend income | 98,961 | 96,934 | 85,922 | 195,895 | 170,857 | ||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Deposits | 28,882 | 25,891 | 18,816 | 54,773 | 32,651 | ||||||||||||||
Borrowed funds | 887 | 3,006 | 4,121 | 3,893 | 7,942 | ||||||||||||||
Total interest expense | 29,769 | 28,897 | 22,937 | 58,666 | 40,593 | ||||||||||||||
NET INTEREST INCOME | 69,192 | 68,037 | 62,985 | 137,229 | 130,264 | ||||||||||||||
Provision for credit losses | 3,161 | 1,588 | 3,940 | 4,749 | 8,899 | ||||||||||||||
Net interest income after provision for credit losses | 66,031 | 66,449 | 59,045 | 132,480 | 121,365 | ||||||||||||||
NON-INTEREST INCOME | |||||||||||||||||||
Trust Department fees | 3,657 | 3,854 | 4,006 | 7,511 | 7,935 | ||||||||||||||
Service charges on deposit accounts | 8,614 | 6,136 | 2,712 | 14,750 | 5,166 | ||||||||||||||
Bank-owned life insurance income | 615 | 609 | 546 | 1,224 | 1,327 | ||||||||||||||
Losses on sale of securities | (2,691 | ) | (2,774 | ) | (267 | ) | (5,465 | ) | (3,353 | ) | |||||||||
Gains on sale of loans, net | 69 | 47 | 2 | 116 | 4 | ||||||||||||||
Equity method investments income (loss) | (1,551 | ) | 2,072 | 556 | 521 | 711 | |||||||||||||
Other income | 545 | 285 | 389 | 830 | 1,360 | ||||||||||||||
Total non-interest income | 9,258 | 10,229 | 7,944 | 19,487 | 13,150 | ||||||||||||||
NON-INTEREST EXPENSE | |||||||||||||||||||
Compensation and employee benefits | 23,045 | 22,273 | 21,165 | 45,318 | 43,180 | ||||||||||||||
Occupancy and depreciation | 3,379 | 2,904 | 3,436 | 6,283 | 6,835 | ||||||||||||||
Professional fees | 2,332 | 2,376 | 2,759 | 4,708 | 4,989 | ||||||||||||||
Data processing | 4,786 | 4,629 | 4,082 | 9,415 | 8,631 | ||||||||||||||
Office maintenance and depreciation | 580 | 663 | 718 | 1,243 | 1,445 | ||||||||||||||
Amortization of intangible assets | 182 | 183 | 222 | 365 | 444 | ||||||||||||||
Advertising and promotion | 1,175 | 1,219 | 1,028 | 2,394 | 2,615 | ||||||||||||||
Federal deposit insurance premiums | 1,050 | 1,050 | 1,100 | 2,100 | 1,818 | ||||||||||||||
Other expense | 2,983 | 2,855 | 3,019 | 5,838 | 6,199 | ||||||||||||||
Total non-interest expense | 39,512 | 38,152 | 37,529 | 77,664 | 76,156 | ||||||||||||||
Income before income taxes | 35,777 | 38,526 | 29,460 | 74,303 | 58,359 | ||||||||||||||
Income tax expense | 9,024 | 11,277 | 7,818 | 20,301 | 15,383 | ||||||||||||||
Net income | $ | 26,753 | $ | 27,249 | $ | 21,642 | $ | 54,002 | $ | 42,976 | |||||||||
Earnings per common share - basic | $ | 0.88 | $ | 0.89 | $ | 0.71 | $ | 1.77 | $ | 1.40 | |||||||||
Earnings per common share - diluted | $ | 0.87 | $ | 0.89 | $ | 0.70 | $ | 1.75 | $ | 1.39 |
Consolidated Statements of Financial Condition
($ in thousands) | 2024 |
2024 |
2023 |
||||||||
Assets | (unaudited) | (unaudited) | |||||||||
Cash and due from banks | $ | 4,081 | $ | 3,830 | $ | 2,856 | |||||
Interest-bearing deposits in banks | 53,912 | 151,374 | 87,714 | ||||||||
Total cash and cash equivalents | 57,993 | 155,204 | 90,570 | ||||||||
Securities: | |||||||||||
Available for sale, at fair value | |||||||||||
Traditional securities | 1,581,338 | 1,445,793 | 1,429,739 | ||||||||
Property Assessed Clean Energy (“PACE”) assessments | 112,923 | 82,258 | 53,303 | ||||||||
1,694,261 | 1,528,051 | 1,483,042 | |||||||||
Held-to-maturity, at amortized cost: | |||||||||||
Traditional securities, net of allowance for credit losses of |
606,013 | 616,172 | 620,232 | ||||||||
PACE assessments, net of allowance for credit losses of |
1,054,569 | 1,057,790 | 1,076,602 | ||||||||
1,660,582 | 1,673,962 | 1,696,834 | |||||||||
Loans held for sale | 1,926 | 2,137 | 1,817 | ||||||||
Loans receivable, net of deferred loan origination costs | 4,471,839 | 4,423,780 | 4,411,319 | ||||||||
Allowance for credit losses | (63,444 | ) | (64,400 | ) | (65,691 | ) | |||||
Loans receivable, net | 4,408,395 | 4,359,380 | 4,345,628 | ||||||||
Resell agreements | 137,461 | 131,242 | 50,000 | ||||||||
4,823 | 4,603 | 4,389 | |||||||||
Accrued interest receivable | 52,575 | 53,436 | 55,484 | ||||||||
Premises and equipment, net | 6,599 | 7,128 | 7,807 | ||||||||
Bank-owned life insurance | 106,752 | 106,137 | 105,528 | ||||||||
Right-of-use lease asset | 17,971 | 19,797 | 21,074 | ||||||||
Deferred tax asset, net | 47,654 | 49,171 | 56,603 | ||||||||
12,936 | 12,936 | 12,936 | |||||||||
Intangible assets, net | 1,852 | 2,034 | 2,217 | ||||||||
Equity method investments | 12,710 | 14,801 | 13,024 | ||||||||
Other assets | 26,214 | 16,663 | 25,371 | ||||||||
Total assets | $ | 8,250,704 | $ | 8,136,682 | $ | 7,972,324 | |||||
Liabilities | |||||||||||
Deposits | $ | 7,448,988 | $ | 7,305,765 | $ | 7,011,988 | |||||
Subordinated debt, net | 68,117 | 70,570 | 70,546 | ||||||||
Other borrowings | 9,135 | 69,135 | 234,381 | ||||||||
Operating leases | 24,784 | 27,250 | 30,646 | ||||||||
Other liabilities | 53,568 | 47,024 | 39,399 | ||||||||
Total liabilities | 7,604,592 | 7,519,744 | 7,386,960 | ||||||||
Stockholders’ equity | |||||||||||
Common stock, par value |
307 | 307 | 307 | ||||||||
Additional paid-in capital | 286,021 | 287,198 | 288,232 | ||||||||
Retained earnings | 435,202 | 412,190 | 388,033 | ||||||||
Accumulated other comprehensive loss, net of income taxes | (73,579 | ) | (78,872 | ) | (86,004 | ) | |||||
(1,972 | ) | (4,018 | ) | (5,337 | ) | ||||||
Total Amalgamated Financial Corp. stockholders' equity | 645,979 | 616,805 | 585,231 | ||||||||
Noncontrolling interests | 133 | 133 | 133 | ||||||||
Total stockholders' equity | 646,112 | 616,938 | 585,364 | ||||||||
Total liabilities and stockholders’ equity | $ | 8,250,704 | $ | 8,136,682 | $ | 7,972,324 |
Select Financial Data
As of and for the | As of and for the | ||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
(Shares in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
Selected Financial Ratios and Other Data: | |||||||||||||||||||
Earnings per share | |||||||||||||||||||
Basic | $ | 0.88 | $ | 0.89 | $ | 0.71 | $ | 1.77 | $ | 1.40 | |||||||||
Diluted | 0.87 | 0.89 | 0.70 | 1.75 | 1.39 | ||||||||||||||
Core net income (non-GAAP) | |||||||||||||||||||
Basic | $ | 0.86 | $ | 0.84 | $ | 0.72 | $ | 1.70 | $ | 1.47 | |||||||||
Diluted | 0.85 | 0.83 | 0.72 | 1.68 | 1.46 | ||||||||||||||
Book value per common share (excluding minority interest) | $ | 21.09 | $ | 20.22 | $ | 17.29 | $ | 21.09 | $ | 17.29 | |||||||||
Tangible book value per share (non-GAAP) | $ | 20.61 | $ | 19.73 | $ | 16.78 | $ | 20.61 | $ | 16.78 | |||||||||
Common shares outstanding, par value |
30,630 | 30,510 | 30,573 | 30,630 | 30,573 | ||||||||||||||
Weighted average common shares outstanding, basic | 30,551 | 30,476 | 30,619 | 30,513 | 30,662 | ||||||||||||||
Weighted average common shares outstanding, diluted | 30,832 | 30,737 | 30,776 | 30,789 | 30,820 | ||||||||||||||
(1) 70,000,000 shares authorized; 30,743,666, 30,736,141, and 30,736,141 shares issued for the periods ended |
Select Financial Data
As of and for the | As of and for the | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||
Selected Performance Metrics: | ||||||||||||||
Return on average assets | 1.30 | % | 1.36 | % | 1.11 | % | 1.33 | % | 1.11 | % | ||||
Core return on average assets (non-GAAP) | 1.27 | % | 1.27 | % | 1.13 | % | 1.27 | % | 1.16 | % | ||||
Return on average equity | 17.27 | % | 18.24 | % | 16.45 | % | 17.75 | % | 16.83 | % | ||||
Core return on average tangible common equity (non-GAAP) | 17.34 | % | 17.59 | % | 17.28 | % | 17.46 | % | 18.21 | % | ||||
Average equity to average assets | 7.53 | % | 7.44 | % | 6.77 | % | 7.48 | % | 6.60 | % | ||||
Tangible common equity to tangible assets (non-GAAP) | 7.66 | % | 7.41 | % | 6.59 | % | 7.66 | % | 6.59 | % | ||||
Loan yield | 4.68 | % | 4.76 | % | 4.33 | % | 4.72 | % | 4.36 | % | ||||
Securities yield | 5.22 | % | 5.21 | % | 4.85 | % | 5.21 | % | 4.79 | % | ||||
Deposit cost | 1.55 | % | 1.46 | % | 1.10 | % | 1.51 | % | 0.96 | % | ||||
Net interest margin | 3.46 | % | 3.49 | % | 3.33 | % | 3.47 | % | 3.46 | % | ||||
Efficiency ratio (1) | 50.37 | % | 48.75 | % | 52.91 | % | 49.56 | % | 53.10 | % | ||||
Core efficiency ratio (non-GAAP) | 50.80 | % | 50.40 | % | 52.31 | % | 50.60 | % | 51.97 | % | ||||
Asset Quality Ratios: | ||||||||||||||
Nonaccrual loans to total loans | 0.78 | % | 0.75 | % | 0.79 | % | 0.78 | % | 0.79 | % | ||||
Nonperforming assets to total assets | 0.43 | % | 0.42 | % | 0.45 | % | 0.43 | % | 0.45 | % | ||||
Allowance for credit losses on loans to nonaccrual loans | 182.83 | % | 195.04 | % | 200.19 | % | 182.83 | % | 200.19 | % | ||||
Allowance for credit losses on loans to total loans | 1.42 | % | 1.46 | % | 1.59 | % | 1.42 | % | 1.59 | % | ||||
Annualized net charge-offs to average loans | 0.25 | % | 0.20 | % | 0.29 | % | 0.22 | % | 0.27 | % | ||||
Capital Ratios: | ||||||||||||||
Tier 1 leverage capital ratio | 8.42 | % | 8.29 | % | 7.78 | % | 8.42 | % | 7.78 | % | ||||
Tier 1 risk-based capital ratio | 13.48 | % | 13.68 | % | 12.51 | % | 13.48 | % | 12.51 | % | ||||
Total risk-based capital ratio | 16.04 | % | 16.35 | % | 15.26 | % | 16.04 | % | 15.26 | % | ||||
Common equity tier 1 capital ratio | 13.48 | % | 13.68 | % | 12.51 | % | 13.48 | % | 12.51 | % | ||||
(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 |
At |
At |
|||||||||||||||||
Amount | % of total | Amount | % of total | Amount | % of total | |||||||||||||||
Commercial portfolio: | ||||||||||||||||||||
Commercial and industrial | $ | 1,012,400 | 22.6 | % | $ | 1,014,084 | 22.9 | % | $ | 949,403 | 22.3 | % | ||||||||
Multifamily | 1,230,545 | 27.5 | % | 1,175,467 | 26.6 | % | 1,095,752 | 25.8 | % | |||||||||||
Commercial real estate | 377,484 | 8.4 | % | 353,598 | 8.0 | % | 333,340 | 7.8 | % | |||||||||||
Construction and land development | 23,254 | 0.5 | % | 23,266 | 0.5 | % | 28,664 | 0.7 | % | |||||||||||
Total commercial portfolio | 2,643,683 | 59.0 | % | 2,566,415 | 58.0 | % | 2,407,159 | 56.6 | % | |||||||||||
Retail portfolio: | ||||||||||||||||||||
Residential real estate lending | 1,404,624 | 31.4 | % | 1,419,321 | 32.1 | % | 1,388,571 | 32.7 | % | |||||||||||
Consumer solar | 385,567 | 8.6 | % | 398,501 | 9.0 | % | 411,873 | 9.7 | % | |||||||||||
Consumer and other | 37,965 | 1.0 | % | 39,543 | 0.9 | % | 44,135 | 1.0 | % | |||||||||||
Total retail portfolio | 1,828,156 | 41.0 | % | 1,857,365 | 42.0 | % | 1,844,579 | 43.4 | % | |||||||||||
Total loans held for investment | 4,471,839 | 100.0 | % | 4,423,780 | 100.0 | % | 4,251,738 | 100.0 | % | |||||||||||
Allowance for credit losses | (63,444 | ) | (64,400 | ) | (67,431 | ) | ||||||||||||||
Loans receivable, net | $ | 4,408,395 | $ | 4,359,380 | $ | 4,184,307 | ||||||||||||||
PACE assessments: | ||||||||||||||||||||
Available for sale, at fair value | ||||||||||||||||||||
Residential PACE assessments | 112,923 | 9.7 | % | 82,258 | 7.2 | % | 23,266 | 2.2 | % | |||||||||||
Held-to-maturity, at amortized cost | ||||||||||||||||||||
Commercial PACE assessments | 256,663 | 22.0 | % | 256,661 | 22.5 | % | 262,093 | 24.7 | % | |||||||||||
Residential PACE assessments | 798,561 | 68.4 | % | 801,786 | 70.3 | % | 775,707 | 73.1 | % | |||||||||||
Total Held-to-maturity PACE assessments |
1,055,224 | 90.4 | % | 1,058,447 | 92.8 | % | 1,037,800 | 97.8 | % | |||||||||||
Total PACE assessments | 1,168,147 | 100.0 | % | 1,140,705 | 100.0 | % | 1,061,066 | 100.0 | % | |||||||||||
Allowance for credit losses | (655 | ) | (657 | ) | (650 | ) | ||||||||||||||
Total PACE assessments, net | $ | 1,167,492 | $ | 1,140,048 | $ | 1,060,416 | ||||||||||||||
Loans receivable, net and total PACE assessments, net as a % of Deposits | 74.9 | % | 75.3 | % | 76.1 | % | ||||||||||||||
Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs | 76.4 | % | 77.0 | % | 81.6 | % |
Net Interest Income Analysis
Three Months Ended | ||||||||||||||||||||||||||
(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 | $ | 213,725 | $ | 2,690 | 5.06 | % | $ | 205,369 | $ | 2,592 | 5.08 | % | $ | 114,010 | $ | 1,056 | 3.72 | % | ||||||||
Securities(1) | 3,308,881 | 42,937 | 5.22 | % | 3,170,356 | 41,064 | 5.21 | % | 3,259,797 | 39,393 | 4.85 | % | ||||||||||||||
Resell agreements | 122,618 | 2,041 | 6.69 | % | 79,011 | 1,326 | 6.75 | % | 5,570 | 113 | 8.14 | % | ||||||||||||||
Loans receivable, net (2) | 4,406,843 | 51,293 | 4.68 | % | 4,390,489 | 51,952 | 4.76 | % | 4,202,911 | 45,360 | 4.33 | % | ||||||||||||||
Total interest-earning assets | 8,052,067 | 98,961 | 4.94 | % | 7,845,225 | 96,934 | 4.97 | % | 7,582,288 | 85,922 | 4.55 | % | ||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||||
Cash and due from banks | 6,371 | 5,068 | 5,034 | |||||||||||||||||||||||
Other assets | 217,578 | 226,270 | 208,944 | |||||||||||||||||||||||
Total assets | $ | 8,276,016 | $ | 8,076,563 | $ | 7,796,266 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||
Savings, NOW and money market deposits | $ | 3,729,858 | $ | 24,992 | 2.69 | % | $ | 3,591,551 | $ | 21,872 | 2.45 | % | $ | 3,203,681 | $ | 13,298 | 1.66 | % | ||||||||
Time deposits | 210,565 | 1,898 | 3.63 | % | 188,045 | 1,576 | 3.37 | % | 158,992 | 610 | 1.54 | % | ||||||||||||||
Brokered CDs | 156,086 | 1,992 | 5.13 | % | 190,240 | 2,443 | 5.16 | % | 411,510 | 4,908 | 4.78 | % | ||||||||||||||
Total interest-bearing deposits | 4,096,509 | 28,882 | 2.84 | % | 3,969,836 | 25,891 | 2.62 | % | 3,774,183 | 18,816 | 2.00 | % | ||||||||||||||
Other borrowings | 104,560 | 887 | 3.41 | % | 288,093 | 3,006 | 4.20 | % | 371,004 | 4,121 | 4.46 | % | ||||||||||||||
Total interest-bearing liabilities | 4,201,069 | 29,769 | 2.85 | % | 4,257,929 | 28,897 | 2.73 | % | 4,145,187 | 22,937 | 2.22 | % | ||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||||
Demand and transaction deposits | 3,390,941 | 3,138,238 | 3,055,770 | |||||||||||||||||||||||
Other liabilities | 60,982 | 79,637 | 67,710 | |||||||||||||||||||||||
Total liabilities | 7,652,992 | 7,475,804 | 7,268,667 | |||||||||||||||||||||||
Stockholders' equity | 623,024 | 600,759 | 527,599 | |||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 8,276,016 | $ | 8,076,563 | $ | 7,796,266 | ||||||||||||||||||||
Net interest income / interest rate spread | $ | 69,192 | 2.09 | % | $ | 68,037 | 2.24 | % | $ | 62,985 | 2.33 | % | ||||||||||||||
Net interest-earning assets / net interest margin | $ | 3,850,998 | 3.46 | % | $ | 3,587,296 | 3.49 | % | $ | 3,437,101 | 3.33 | % | ||||||||||||||
Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs | $ | 7,331,364 | 1.48 | % | $ | 6,917,834 | 1.36 | % | $ | 6,418,443 | 0.87 | % | ||||||||||||||
Total deposits / total cost of deposits | $ | 7,487,450 | 1.55 | % | $ | 7,108,074 | 1.46 | % | $ | 6,829,953 | 1.10 | % | ||||||||||||||
Total funding / total cost of funds | $ | 7,592,010 | 1.58 | % | $ | 7,396,167 | 1.57 | % | $ | 7,200,957 | 1.28 | % | ||||||||||||||
(1) Includes FHLBNY stock in the average balance, and dividend income on FHLBNY stock in interest income. | ||||||||||||||||||||||||||
(2) Includes prepayment penalty interest income in 2Q2024, 1Q2024, and 2Q2023 of |
Net Interest Income Analysis
Six Months Ended | |||||||||||||||||
(In thousands) | Average Balance |
Income / Expense |
Yield / Rate |
Average Balance |
Income / Expense |
Yield / Rate |
|||||||||||
Interest-earning assets: | |||||||||||||||||
Interest-bearing deposits in banks | $ | 209,547 | $ | 5,282 | 5.07 | % | $ | 102,550 | $ | 1,673 | 3.29 | % | |||||
Securities | 3,239,619 | 84,000 | 5.21 | % | 3,310,492 | 78,586 | 4.79 | % | |||||||||
Resell agreements | 100,814 | 3,368 | 6.72 | % | 12,071 | 432 | 7.22 | % | |||||||||
Total loans, net (1)(2) | 4,398,665 | 103,245 | 4.72 | % | 4,166,389 | 90,166 | 4.36 | % | |||||||||
Total interest-earning assets | 7,948,645 | 195,895 | 4.96 | % | 7,591,502 | 170,857 | 4.54 | % | |||||||||
Non-interest-earning assets: | |||||||||||||||||
Cash and due from banks | 5,720 | 4,527 | |||||||||||||||
Other assets | 221,924 | 212,960 | |||||||||||||||
Total assets | $ | 8,176,289 | $ | 7,808,989 | |||||||||||||
Interest-bearing liabilities: | |||||||||||||||||
Savings, NOW and money market deposits | $ | 3,660,704 | $ | 46,864 | 2.57 | % | $ | 3,147,765 | $ | 22,853 | 1.46 | % | |||||
Time deposits | 199,305 | 3,474 | 3.51 | % | 154,429 | 907 | 1.18 | % | |||||||||
Brokered CDs | 173,163 | 4,435 | 5.15 | % | 389,718 | 8,891 | 4.60 | % | |||||||||
Total interest-bearing deposits | 4,033,172 | 54,773 | 2.73 | % | 3,691,912 | 32,651 | 1.78 | % | |||||||||
Other borrowings | 196,326 | 3,893 | 3.99 | % | 359,505 | 7,942 | 4.45 | % | |||||||||
Total interest-bearing liabilities | 4,229,498 | 58,666 | 2.79 | % | 4,051,417 | 40,593 | 2.02 | % | |||||||||
Non-interest-bearing liabilities: | |||||||||||||||||
Demand and transaction deposits | 3,264,590 | 3,170,729 | |||||||||||||||
Other liabilities | 70,309 | 71,732 | |||||||||||||||
Total liabilities | 7,564,397 | 7,293,878 | |||||||||||||||
Stockholders' equity | 611,892 | 515,111 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 8,176,289 | $ | 7,808,989 | |||||||||||||
Net interest income / interest rate spread | $ | 137,229 | 2.17 | % | $ | 130,264 | 2.52 | % | |||||||||
Net interest-earning assets / net interest margin | $ | 3,719,147 | 3.47 | % | $ | 3,540,085 | 3.46 | % | |||||||||
Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs | $ | 7,124,599 | 1.42 | % | $ | 6,472,923 | 0.74 | % | |||||||||
Total deposits / total cost of deposits | $ | 7,297,762 | 1.51 | % | $ | 6,862,641 | 0.96 | % | |||||||||
Total funding / total cost of funds | $ | 7,494,088 | 1.57 | % | $ | 7,222,146 | 1.13 | % | |||||||||
(1) |
|||||||||||||||||
(2) Includes prepayment penalty interest income in June YTD 2024 and June YTD 2023 of |
Deposit Portfolio Composition
Three Months Ended | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Ending Balance |
Average Balance |
Ending Balance |
Average Balance |
Ending Balance |
Average Balance |
||||||||||||||||||
Non-interest-bearing demand deposit accounts | $ | 3,445,068 | $ | 3,390,941 | $ | 3,182,047 | $ | 3,138,238 | $ | 2,958,104 | $ | 3,055,770 | |||||||||||
NOW accounts | 192,452 | 191,253 | 200,900 | 197,659 | 199,262 | 193,851 | |||||||||||||||||
Money market deposit accounts | 3,093,644 | 3,202,365 | 3,222,271 | 3,051,670 | 2,744,411 | 2,644,580 | |||||||||||||||||
Savings accounts | 336,943 | 336,240 | 341,054 | 342,222 | 363,058 | 365,250 | |||||||||||||||||
Time deposits | 227,437 | 210,565 | 197,265 | 188,045 | 161,335 | 158,992 | |||||||||||||||||
Brokered certificates of deposit ("CDs") | 153,444 | 156,086 | 162,228 | 190,240 | 468,481 | 411,510 | |||||||||||||||||
Total deposits | $ | 7,448,988 | $ | 7,487,450 | $ | 7,305,765 | $ | 7,108,074 | $ | 6,894,651 | $ | 6,829,953 | |||||||||||
Total deposits excluding Brokered CDs | $ | 7,295,544 | $ | 7,331,364 | $ | 7,143,537 | $ | 6,917,834 | $ | 6,426,170 | $ | 6,418,443 |
Three Months Ended | |||||||||||||||||
(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 | 1.07 | % | 1.07 | % | 1.05 | % | 1.03 | % | 0.95 | % | 0.96 | % | |||||
Money market deposit accounts | 3.08 | % | 2.93 | % | 2.96 | % | 2.67 | % | 2.02 | % | 1.81 | % | |||||
Savings accounts | 1.67 | % | 1.37 | % | 1.34 | % | 1.29 | % | 1.04 | % | 1.00 | % | |||||
Time deposits | 3.50 | % | 3.63 | % | 3.44 | % | 3.37 | % | 1.77 | % | 1.54 | % | |||||
Brokered CDs | 4.98 | % | 5.13 | % | 4.99 | % | 5.16 | % | 5.02 | % | 4.78 | % | |||||
Total deposits | 1.59 | % | 1.55 | % | 1.60 | % | 1.46 | % | 1.27 | % | 1.10 | % | |||||
Interest-bearing deposits excluding Brokered CDs | 2.88 | % | 2.74 | % | 2.75 | % | 2.50 | % | 1.84 | % | 1.66 | % | |||||
(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) | |||||||||||
Loans 90 days past due and accruing | $ | — | $ | — | $ | — | |||||
Nonaccrual loans held for sale | 989 | 989 | 1,546 | ||||||||
Nonaccrual loans - Commercial | 23,778 | 24,228 | 28,078 | ||||||||
Nonaccrual loans - Retail | 10,924 | 8,791 | 5,606 | ||||||||
Nonaccrual securities | 29 | 31 | 35 | ||||||||
Total nonperforming assets | $ | 35,720 | $ | 34,039 | $ | 35,265 | |||||
Nonaccrual loans: | |||||||||||
Commercial and industrial | $ | 8,428 | $ | 8,750 | $ | 7,575 | |||||
Multifamily | — | — | 2,376 | ||||||||
Commercial real estate | 4,231 | 4,354 | 4,660 | ||||||||
Construction and land development | 11,119 | 11,124 | 13,467 | ||||||||
Total commercial portfolio | 23,778 | 24,228 | 28,078 | ||||||||
Residential real estate lending | 7,756 | 4,763 | 2,470 | ||||||||
Consumer solar | 2,794 | 3,852 | 2,811 | ||||||||
Consumer and other | 374 | 176 | 325 | ||||||||
Total retail portfolio | 10,924 | 8,791 | 5,606 | ||||||||
Total nonaccrual loans | $ | 34,702 | $ | 33,019 | $ | 33,684 |
Credit Quality
($ in thousands) | |||||||||||
Criticized and classified loans | |||||||||||
Commercial and industrial | $ | 53,940 | $ | 62,242 | $ | 34,987 | |||||
Multifamily | 10,242 | 10,274 | 17,668 | ||||||||
Commercial real estate | 8,311 | 8,475 | 29,788 | ||||||||
Construction and land development | 11,119 | 11,124 | 15,891 | ||||||||
Residential real estate lending | 7,756 | 4,763 | 2,470 | ||||||||
Consumer solar | 2,794 | 3,785 | 2,811 | ||||||||
Consumer and other | 374 | 243 | 325 | ||||||||
Total loans | $ | 94,536 | $ | 100,906 | $ | 103,940 |
Criticized and classified loans to total loans | ||||||||
Commercial and industrial | 1.21 | % | 1.41 | % | 0.82 | % | ||
Multifamily | 0.23 | % | 0.23 | % | 0.42 | % | ||
Commercial real estate | 0.19 | % | 0.19 | % | 0.70 | % | ||
Construction and land development | 0.25 | % | 0.25 | % | 0.37 | % | ||
Residential real estate lending | 0.17 | % | 0.11 | % | 0.06 | % | ||
Consumer solar | 0.06 | % | 0.09 | % | 0.07 | % | ||
Consumer and other | 0.01 | % | 0.01 | % | 0.01 | % | ||
Total loans | 2.12 | % | 2.29 | % | 2.45 | % |
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 | 0.32 | % | 1.44 | % | 0.16 | % | 1.58 | % | 0.36 | % | 1.77 | % | |||||
Multifamily | — | % | 0.38 | % | — | % | 0.38 | % | — | % | 0.58 | % | |||||
Commercial real estate | — | % | 0.40 | % | — | % | 0.40 | % | — | % | 0.69 | % | |||||
Construction and land development | — | % | 3.60 | % | — | % | 3.67 | % | — | % | 1.13 | % | |||||
Residential real estate lending | (0.18 | )% | 0.88 | % | — | % | 0.87 | % | (0.01 | )% | 1.10 | % | |||||
Consumer solar | 2.57 | % | 7.00 | % | 1.67 | % | 6.72 | % | 0.58 | % | 6.79 | % | |||||
Consumer and other | 0.01 | % | 6.49 | % | 0.86 | % | 6.36 | % | 0.96 | % | 6.06 | % | |||||
Total loans | 0.25 | % | 1.42 | % | 0.20 | % | 1.46 | % | 0.14 | % | 1.59 | % |
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 | Six Months Ended | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Core operating revenue | |||||||||||||||||||
Net Interest income (GAAP) | $ | 69,192 | $ | 68,037 | $ | 62,985 | $ | 137,229 | $ | 130,264 | |||||||||
Non-interest income | 9,258 | 10,229 | 7,944 | 19,487 | 13,150 | ||||||||||||||
Add: Securities loss | 2,691 | 2,774 | 267 | 5,465 | 3,353 | ||||||||||||||
Less: ICS One-Way Sell Fee Income(1) | (4,859 | ) | (2,903 | ) | — | (7,762 | ) | — | |||||||||||
Less: Subdebt repurchase gain(2) | (406 | ) | — | — | (406 | ) | (780 | ) | |||||||||||
Add: Tax (credits) depreciation on solar investments(3) | 1,815 | (1,808 | ) | — | 7 | — | |||||||||||||
Core operating revenue (non-GAAP) | 77,691 | 76,329 | 71,196 | 154,020 | 145,987 | ||||||||||||||
Core non-interest expense | |||||||||||||||||||
Non-interest expense (GAAP) | $ | 39,512 | $ | 38,152 | $ | 37,529 | $ | 77,664 | $ | 76,156 | |||||||||
Add: Gain on settlement of lease termination(4) | — | 499 | — | 499 | — | ||||||||||||||
Less: Severance costs(5) | (44 | ) | (184 | ) | (285 | ) | (228 | ) | (285 | ) | |||||||||
Core non-interest expense (non-GAAP) | 39,468 | 38,467 | 37,244 | 77,935 | 75,871 | ||||||||||||||
Core net income | |||||||||||||||||||
Net Income (GAAP) | $ | 26,753 | $ | 27,249 | $ | 21,642 | $ | 54,002 | $ | 42,977 | |||||||||
Add: Securities loss | 2,691 | 2,774 | 267 | 5,465 | 3,353 | ||||||||||||||
Less: ICS One-Way Sell Fee Income(1) | (4,859 | ) | (2,903 | ) | — | (7,762 | ) | — | |||||||||||
Less: Gain on settlement of lease termination(4) | — | (499 | ) | — | (499 | ) | — | ||||||||||||
Less: Subdebt repurchase gain(2) | (406 | ) | — | — | (406 | ) | (780 | ) | |||||||||||
Add: Severance costs(5) | 44 | 184 | 285 | 228 | 285 | ||||||||||||||
Add: Tax (credits) depreciation on solar investments(3) | 1,815 | (1,808 | ) | — | 7 | — | |||||||||||||
Less: Tax on notable items | 180 | 607 | (147 | ) | 775 | (753 | ) | ||||||||||||
Core net income (non-GAAP) | 26,218 | 25,604 | 22,047 | 51,810 | 45,082 | ||||||||||||||
Tangible common equity | |||||||||||||||||||
Stockholders' equity (GAAP) | $ | 646,112 | $ | 616,938 | $ | 528,614 | $ | 646,112 | $ | 528,614 | |||||||||
Less: Minority interest | (133 | ) | (133 | ) | (133 | ) | (133 | ) | (133 | ) | |||||||||
Less: |
(12,936 | ) | (12,936 | ) | (12,936 | ) | (12,936 | ) | (12,936 | ) | |||||||||
Less: Core deposit intangible | (1,852 | ) | (2,034 | ) | (2,661 | ) | (1,852 | ) | (2,661 | ) | |||||||||
Tangible common equity (non-GAAP) | 631,191 | 601,835 | 512,884 | 631,191 | 512,884 | ||||||||||||||
Average tangible common equity | |||||||||||||||||||
Average stockholders' equity (GAAP) | $ | 623,024 | $ | 600,759 | $ | 527,599 | $ | 611,892 | $ | 515,111 | |||||||||
Less: Minority interest | (133 | ) | (133 | ) | (133 | ) | (133 | ) | (133 | ) | |||||||||
Less: |
(12,936 | ) | (12,936 | ) | (12,936 | ) | (12,936 | ) | (12,936 | ) | |||||||||
Less: Core deposit intangible | (1,941 | ) | (2,123 | ) | (2,769 | ) | (2,032 | ) | (2,879 | ) | |||||||||
Average tangible common equity (non-GAAP) | 608,014 | 585,567 | 511,761 | 596,791 | 499,163 | ||||||||||||||
Core return on average assets | |||||||||||||||||||
Denominator: Total average assets (GAAP) | $ | 8,276,016 | $ | 8,076,563 | $ | 7,796,266 | 8,176,290 | 7,808,988 | |||||||||||
Core return on average assets (non-GAAP) | 1.27 | % | 1.27 | % | 1.13 | % | 1.27 | % | 1.16 | % | |||||||||
Core return on average tangible common equity | |||||||||||||||||||
Denominator: Average tangible common equity | $ | 608,014 | $ | 585,567 | $ | 511,761 | 596,791 | 499,163 | |||||||||||
Core return on average tangible common equity (non-GAAP) | 17.34 | % | 17.59 | % | 17.28 | % | 17.46 | % | 18.21 | % | |||||||||
Core efficiency ratio | |||||||||||||||||||
Numerator: Core non-interest expense (non-GAAP) | $ | 39,468 | $ | 38,467 | $ | 37,244 | $ | 77,935 | $ | 75,871 | |||||||||
Core efficiency ratio (non-GAAP) | 50.80 | % | 50.40 | % | 52.31 | % | 50.60 | % | 51.97 | % | |||||||||
(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 |
![](https://ml.globenewswire.com/media/YTg3MWI5M2MtNGFkYi00ODlmLWJiNWItZDg5MWQwNDcyNDkwLTExMTA5Nzc=/tiny/Amalgamated-Financial-Corp-.png)
Source: Amalgamated Financial Corp.