On July 25, 2024, Amalgamated Financial Corp (AMAL, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. Amalgamated Financial Corp is a bank holding company that provides a full suite of commercial and retail banking, investment management, and trust and custody services across the United States.
Second Quarter Earnings
Amalgamated Financial Corp reported a net income of $26.8 million, or $0.87 per diluted share, slightly below the previous quarter's $27.2 million, or $0.89 per diluted share. However, this performance surpassed the analyst estimate of $0.78 per share. Core net income also showed an increase, reaching $26.2 million, or $0.85 per diluted share, compared to $25.6 million, or $0.83 per diluted share, in the prior quarter.
Deposits and Liquidity
Total deposits grew by $143.2 million, or 2.0%, to $7.4 billion, with a notable increase in political deposits by $292.3 million, or 20%, to $1.7 billion. Off-balance sheet deposits surged by 133% to $1.1 billion. The average cost of deposits, excluding Brokered CDs, rose by 12 basis points to 148 basis points.
Assets and Margin
Net loans receivable increased by $49.0 million, or 1.1%, to $4.4 billion. Net interest income grew by $1.2 million, or 1.7%, to $69.2 million, although the net interest margin compressed slightly by 3 basis points to 3.46% due to an unanticipated premium acceleration.
Capital and Returns
Amalgamated Financial Corp's Tier 1 leverage ratio improved to 8.42%, and the Common Equity Tier 1 ratio stood at 13.48%. The tangible book value per share increased by 4.5% to $20.61, marking a 22.8% year-over-year growth. The core return on average tangible common equity was strong at 17.34%, and the core return on average assets was 1.27%.
Priscilla Sims Brown, President and Chief Executive Officer, commented, “Our second quarter financial results clearly demonstrate that Amalgamated is continuing its high performance across key metrics. We delivered outstanding deposit growth, strong returns, and a continuously growing, sustainable earnings base that will provide us with optionality as we look to further expand our franchise over the medium term.”
Income Statement Highlights
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $26.8 million | $27.2 million | $21.6 million |
| Earnings Per Share (Diluted) | $0.87 | $0.89 | $0.70 |
| Net Interest Income | $69.2 million | $68.0 million | $63.0 million |
| Net Interest Margin | 3.46% | 3.49% | 3.33% |
Balance Sheet Summary
Total assets increased to $8.3 billion from $8.1 billion in the previous quarter. Notable changes included a $97.2 million decrease in cash and cash equivalents, a $152.8 million increase in securities, and a $49.0 million increase in net loans receivable. Deposits, excluding Brokered CDs, increased by $152.0 million, while Brokered CDs decreased by $8.8 million.
Analysis
Amalgamated Financial Corp's performance in Q2 2024 demonstrates resilience and growth, particularly in deposit accumulation and net interest income. The slight compression in net interest margin and the increase in non-interest expense are areas to monitor. However, the company's strong capital ratios and tangible book value growth indicate a solid financial foundation.
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Explore the complete 8-K earnings release (here) from Amalgamated Financial Corp for further details.
