Amalgamated Financial (AMAL) Q3 2024 earnings summary

Executive summary

• Record Q3 2024 results with net income of $27.9 million ($0.90 per diluted share), up 25% year-over-year and 7.1% sequentially; core net income was $28.0 million ($0.91 per share).

• Deposits rose to $7.6 billion, up $145.6 million from the prior quarter, with political deposits increasing to $2.0 billion and 26.2% of total deposits.

• Net loans receivable increased to $4.5 billion, with commercial and mission-aligned lending driving growth.

• Tangible book value per share increased 8.2% sequentially and 27.9% year-over-year to $22.29.

• The company maintains a strong mission-driven focus, with growth in political, social, philanthropy, and sustainable segments.

Financial highlights

• Net interest income for Q3 2024 was $72.1 million, up 13.2% year-over-year and 4.2% sequentially; net interest margin expanded to 3.51%.

• Non-interest income was $8.9 million, up from $6.8 million in Q3 2023.

• Non-interest expense increased to $41.0 million, mainly due to higher compensation and data processing costs.

• Provision for credit losses was $1.8 million, down from $2.0 million in Q3 2023 and $3.2 million in Q2 2024.

• Allowance for credit losses on loans was 1.35% of total loans.

Outlook and guidance

• 2024 guidance raised: core pre-tax, pre-provision earnings of $154–$156 million and net interest income of $279–$281 million.

• Q4 net interest income expected between $70–$72 million; margin may compress 1–2 basis points depending on political deposit outflows.

• Year-end balance sheet size targeted at ~$8.35 billion, with growth expected at ~4%.

• Tier 1 leverage ratio goal raised to 9% by Q1 or Q2 2025; currently targeted above 8.5%.

• Management expects continued focus on core lending and deposit growth through relationship banking.