Amalgamated Financial (AMAL) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered record results with net income of $27.9 million ($0.90 per diluted share), up from $26.8 million sequentially and $22.3 million year-over-year; core net income reached $28.0 million ($0.91 per diluted share).

• Deposits rose to $7.6 billion, with political deposits reaching $2 billion and comprising 26.2% of total deposits; non-political and mission-aligned segments also saw strong growth.

• Net loans receivable increased to $4.5 billion, with commercial, multifamily, and CRE portfolios all expanding.

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

• The company maintains a diversified, mission-driven business model with a robust trust and investment management business.

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 5 basis points to 3.51%.

• Core pre-tax pre-provision earnings guidance for 2024 raised to $154–$156 million; net interest income guidance increased to $279–$281 million.

• Return on average assets was 1.32%; core return on average tangible common equity was 17.04%.

• Non-interest income was $8.9 million, up from $6.8 million year-over-year; non-interest expense increased to $41.0 million.

• Tangible common equity ratio improved to 8.14%, with Tier 1 leverage ratio at 8.63% and total risk-based capital at 16.25%.

Outlook and guidance

• Management expects sustainable earnings and profitability, supported by strong deposit and loan growth and a growing capital base.

• Full-year 2024 guidance tightened: 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.

• Targeting a 9% Tier 1 leverage ratio by Q1 or Q2 2025, with a return of capital plan to be provided after reaching this target.

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