Amalgamated Financial (AMAL) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $26.8 million ($0.87 per diluted share), up from $21.6 million ($0.70) in Q2 2023, with core net income at $26.2 million ($0.85 per diluted share); tangible book value per share rose 4.5% to $20.61.

• Total assets reached $8.3 billion, deposits $7.4 billion, and net loans $4.4 billion as of June 30, 2024, reflecting robust growth and a strong mission-based banking model.

• Six-month net income was $54.0 million ($1.75 per diluted share), compared to $43.0 million ($1.39) for the same period in 2023.

• Mission-based banking continues to attract purpose-driven customers, with recognition such as Forbes' 2024 list of best banks.

• Attended major industry conferences, reinforcing leadership in social impact and climate finance.

Financial highlights

• Net interest income for Q2 2024 was $69.2 million, up 9.8% year-over-year and 1.7% sequentially; net interest margin was 3.46%.

• Total deposits reached $7.4 billion, up $143.2 million from the prior quarter; non-interest-bearing deposits were 45.3%–46% of average deposits.

• Non-interest income for Q2 2024 was $9.3 million, with core non-interest income at $8.5 million.

• Non-interest expense increased to $39.5 million, mainly from higher compensation and data processing costs; core efficiency ratio was 50.8%.

• Allowance for credit losses to total loans was 1.42%; nonperforming assets to total assets stable at 0.43%.

Outlook and guidance

• 2024 guidance raised to core pre-tax, pre-provision earnings of $149–$152 million and net interest income of $274–$278 million.

• Targeting year-end balance sheet size of ~$8.3 billion and Tier 1 leverage ratio above 8.5%.

• Q3 net interest income expected between $69–$71 million; NIM projected to expand 2–4 basis points.

• Expecting $100–$120 million in new loans per quarter in Q3 and Q4, with $150–$185 million in climate-related loans for the year.

• Management expects continued sustainable earnings growth and franchise expansion over the medium term.