Q2 2024 Amalgamated Bank Earnings Call Transcript
Key Points
- Amalgamated Financial Corp (AMAL) reported significant deposit growth with over $759 million in new deposits, led by political, union, and non-profit customer segments.
- The company achieved a net income of $26.8 million or $0.87 per diluted share, with core net income at $26.2 million or $0.85 per diluted share.
- Amalgamated Financial Corp (AMAL) saw a 13 basis point increase in its leverage ratio and a tangible book value per share increase of $0.88 to $20.61.
- The bank's non-political deposit growth has been well ahead of internal plans, reducing the need for significant borrowing through year-end 2024.
- Amalgamated Financial Corp (AMAL) is recognized as an industry leader in climate finance, with promising sustainable lending pipelines and international impact opportunities.
- The company experienced elevated consumer solar charge-offs, with a high net charge-off rate of 23 basis points, leading to an additional $1 million in reserves.
- Loan growth was muted by $87 million of commercial and industrial payoffs and paydowns during the quarter.
- The yield on total loans decreased by eight basis points to 4.68% due to $20 million of government-guaranteed C&I loans being put back to the government.
- Amalgamated Financial Corp (AMAL) anticipates recognizing $1.5 million to $2 million of net deferred loan costs in Q3, which will reduce net interest margin by approximately 10 basis points.
- The company expects political deposits to begin exiting during the third quarter, potentially impacting the balance sheet and deposit mix.
Good morning, ladies and gentlemen, and welcome to the Amalgamated Financial Second Quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the call over to Mr. Jason Darby, Chief Financial Officer. Please go ahead, sir.
Thank you, operator, and good morning, everyone. We appreciate your participation in our earnings call. With me today is Priscilla Sims Brown, our President, and Chief Executive Officer. As a reminder, a telephonic replay of this call will be available on the Investors section of our website for an extended period of time. Additionally, a slide deck to complement today's discussion is also available on the investor section of our website.
Before we begin, let me remind everyone that this call may contain certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We caution investors that actual
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