Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find compa ...

Core Viewpoint - Amalgamated Financial Corp. is expected to see an increase in earnings this year due to loan growth and slight margin expansion, with projected earnings of $3.11 per share, representing an 8.9% year-over-year increase [2][8]. Loan Growth - Loan growth for Amalgamated Financial was 7% for the full year, exceeding previous expectations, despite a deceleration in the last quarter of 2023 [3]. - The management anticipates a stable balance sheet in the first half of the year, followed by a projected 3% increase in the second half [3]. - The company primarily focuses on lending in Washington D.C., New York City, and San Francisco, with the regional economy supporting continued loan growth [3]. - The loan portfolio is expected to grow by 5% in 2024 [5]. Balance Sheet and Margin Trends - The net interest margin improved by 15 basis points in the last quarter of 2023, although it shrank by 12 basis points overall for the year [7]. - The management expects the Fed funds rate to decline by 50-75 basis points in 2024, which may negatively impact the net interest margin due to sticky deposit costs and the need for repricing of some assets [7]. - Despite these challenges, the management is optimistic about margin expansion due to planned changes and the maturity of high-cost borrowings [7]. Earnings Outlook - The company reported earnings of $2.86 per share for 2023, up 9.4% year-over-year, and is projected to continue this upward trend in 2024 with expected earnings of $3.11 per share [8]. - The income statement estimates show a net interest income increase from $261 million in FY23 to $277 million in FY24E [9]. Valuation and Target Price - The stock is currently offering a dividend yield of 1.7%, with a potential for a dividend hike due to a low payout ratio of 12.9% for 2024 [11]. - The target price based on historical price-to-tangible book (P/TB) and price-to-earnings (P/E) multiples suggests a price of $26.3, indicating a 9.6% upside from the current market price [11]. - The combined target price reflects a total expected return of 11.2% when including the forward dividend yield [11].

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find s ...

Financial Data and Key Metrics Changes - Net income for Q4 2023 was $22.7 million, or $0.74 per diluted share, with core net income at $22.1 million or $0.72 per diluted share [16] - Deposits increased by $21.1 million from the previous quarter, totaling $7 billion, with on-balance sheet deposits (excluding brokered CDs) rising by $170.9 million or 2.6% to $6.8 billion [19] - Net interest margin (NIM) expanded by 15 basis points to 3.44%, driven by increased yields and average balances of interest-earning assets [23] Business Line Data and Key Metrics Changes - Political deposits grew by $236 million to approximately $1.2 billion, with further inflows of $32.3 million through January 17, 2024 [20] - Net loans receivable increased by $48.7 million or 1.1%, primarily due to growth in multi-family loans, commercial real estate, and residential loans [22] - Core non-interest income rose to $8.5 million from $7.8 million in the previous quarter, attributed to fees from treasury bill investments and off-balance sheet reciprocal deposits [24] Market Data and Key Metrics Changes - The allowance for credit losses on loans decreased by $2.1 million to $65.7 million, with the ratio of allowance to total loans at 1.49%, down 16 basis points from the previous quarter [25] - Non-performing assets totaled $34.2 million or 0.4% of total assets, with criticized assets increasing by $22 million [25] Company Strategy and Development Direction - The company aims to maintain a neutral balance sheet strategy while focusing on sustainable profitability and returns, particularly in the impact lending space [10][14] - The management is optimistic about the growth potential in the non-profit and union segments, as well as in climate risk-related investments [13][14] - The company is targeting a Tier 1 leverage ratio of approximately 8.5% by the second quarter of 2024 [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2023 but expressed confidence in the company's ability to emerge stronger, emphasizing the importance of patience in 2024 [15][29] - The company expects to see continued deposit inflows as the presidential election cycle progresses, which will support its growth strategy [19][71] - Management highlighted the significant investment needed in climate risk and sustainable projects, positioning the company to capitalize on these opportunities [13][71] Other Important Information - The company has initiated full-year 2024 guidance for core pre-tax pre-provision earnings between $143 million and $148 million, and net interest income of $268 million to $272 million [27] - The company has sold $550 million in total securities since Q2 2022, benefiting from a strategic repositioning of its portfolio [11] Q&A Session Summary Question: Expectations for loan portfolio growth in the first half of the year - Management expressed optimism about the lending pipeline, particularly in community solar and industrial real estate, supporting a neutral balance sheet strategy [32] Question: Rate sensitivity of various business lines - Management indicated that while some deals are sensitive to rates, they maintain the ability to be selective in pricing and credit quality [34] Question: Strategy behind moving $303 million off balance sheet - The off-balance sheet deposits are primarily political deposits and transitional trust business deposits, aimed at maintaining capital and managing funding extinguishment [36][38] Question: Loan growth target for 2024 - Management confirmed a target of 2% to 3% sequential loan growth, driven by impact lending and sustainability initiatives [42] Question: NII sensitivity to rate changes - Management provided a conservative estimate of a $1.6 million annualized decline in NII for a 25 basis point decrease in rates, reflecting a cautious approach to customer rate adjustments [47] Question: Impact of off-balance sheet deposits on income - Management estimated that off-balance sheet deposits could contribute between $1 million and $1.5 million of non-interest income for the quarter [57]

For the quarter ended December 2023, Amalgamated Financial (AMAL) reported revenue of $76.73 million, up 7.2% over the same period last year. EPS came in at $0.72, compared to $0.83 in the year-ago quarter.The reported revenue represents a surprise of +7.17% over the Zacks Consensus Estimate of $71.59 million. With the consensus EPS estimate being $0.73, the EPS surprise was -1.37%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wal ...

Amalgamated Financial (AMAL) came out with quarterly earnings of $0.72 per share, missing the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.83 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.37%. A quarter ago, it was expected that this bank would post earnings of $0.71 per share when it actually produced earnings of $0.76, delivering a surprise of 7.04%.Over the last four quarters, the compan ...

NEW YORK, Jan. 25, 2024 (GLOBE NEWSWIRE) -- Amalgamated Financial Corp. (the "Company" or "Amalgamated") (NASDAQ:AMAL), the holding company for Amalgamated Bank (the "Bank"), today announced financial results for the fourth quarter ended December 31, 2023. Fourth Quarter 2023 Highlights (on a linked quarter basis) Net income of $22.7 million, or $0.74 per diluted share, compared to $22.3 million, or $0.73 per diluted share.Core net income1 of $22.1 million, or $0.72 per diluted share, compared to $23.3 mill ...

NEW YORK, Jan. 23, 2024 (GLOBE NEWSWIRE) -- Amalgamated Financial Corp. ("Amalgamated" or the "Company") (NASDAQ:AMAL) today announced that its Board of Directors has declared a regular dividend to common stockholders of $0.10 per share, payable by the Company on February 23, 2024, to stockholders of record on February 6, 2024. The amount and timing of any future dividend payments to stockholders will be subject to the discretion of the Board of Directors. About Amalgamated Financial Corp. Amalgamated Fina ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number: 001-40136 Amalgamated Financial Corp. (Exact name of registrant as specified in its charter) Delaware 85-2757101 (State or other jurisdiction ...

Amalgamated Financial Corp. (NASDAQ:AMAL) Q3 2023 Earnings Conference Call October 26, 2023 11:00 AM ET Company Participants Jason Darby - Chief Financial Officer Priscilla Sims Brown - President & Chief Executive Officer Conference Call Participants Chris O'Connell - KBW Operator Good morning, ladies and gentlemen, and welcome to the Amalgamated Financial Corporation Third Quarter 2023 Earnings Conference Call. During today's presentation, all parties will be on a listen only mode. Following the presentati ...