Amalgamated Financial (AMAL) Q4 2024 earnings summary

Executive summary

• Achieved near-record core earnings per share of $0.90 in Q4, with full-year record earnings of $106.4 million, driven by strong loan and deposit growth despite election-related deposit outflows.

• Core net income for Q4 2024 was $28.0 million ($0.90/diluted share), flat sequentially; full year core net income increased 19.1% to $107.8 million ($3.48/diluted share).

• Net interest margin expanded to 3.59% in Q4, up 8 bps from Q3, with net interest income for the year growing 8.1% to $282.4 million.

• Tangible book value per share increased 20.6% year-over-year to $22.60; tangible common equity ratio improved to 8.41%.

• Maintained a well-diversified business model with broad-based segment strength, especially in labor and not-for-profit sectors.

Financial highlights

• Net loans receivable grew $126.4 million (2.8%) in Q4 and $354.1 million (8.3%) for the year, excluding low-yielding loans moved to held-for-sale.

• Total deposits (excluding brokered CDs) ended Q4 at $7.2 billion, down $414 million (5.5%) sequentially, mainly due to political deposit outflows post-election.

• Nonperforming assets decreased to $25.9 million (0.31% of assets) at year-end, with allowance for credit losses on loans at 1.29% of total loans.

• Efficiency ratio improved to 49.82% in Q4; core efficiency ratio was 49.8%.

• Dividend increased by 17%, with a targeted 20–25% total payout ratio (dividends and share repurchases).

Outlook and guidance

• 2025 guidance: core pre-tax pre-provision earnings of $159–$163 million and net interest income of $293–$297 million, assuming two Fed rate cuts.

• Year-end balance sheet growth target is 3%, with a 9.0% Tier 1 leverage baseline and 1.3% annual core ROAA.

• Q1 2025 net interest margin expected to compress 2–3 bps, with NII between $70–$71 million.

• Expense guidance for 2025 is $170 million, a 6% increase, mainly for technology and talent investments.

• Investments in trust and technology to drive revenue growth in 2026 and beyond.