Financial Performance - Net income for the year ended December 31, 2024, was $106.4 million, or $3.44 per average diluted share, compared to $88.0 million, or $2.86 per average diluted share, for the same period in 2023, reflecting an increase of $18.4 million[339]. - Net interest income increased by $21.1 million, contributing significantly to the overall revenue growth[339]. - Non-interest income for the year ended December 31, 2024, was $33.2 million, an increase of $3.9 million or 13.3% from $29.3 million in 2023[354]. - Non-interest expenses increased by $8.6 million, which included higher salaries and operational costs[339]. - The provision for income tax expense was $39.2 million in 2024, with an effective tax rate of 26.9%, down from 29.5% in 2023[360]. Loan Portfolio - Total loans, net of deferred origination fees and allowance for credit losses, increased to $4.61 billion as of December 31, 2024, up from $4.35 billion in 2023, representing a growth of 6%[376]. - The commercial loan portfolio comprised 63.3% of the total loan portfolio as of December 31, 2024, up from 57.5% in 2023[380]. - C&I loans totaled $1.18 billion, accounting for 25.2% of the total loan portfolio, with a year-over-year increase of 16.3%[380]. - Multifamily loans reached $1.35 billion, representing 28.9% of the total loan portfolio, with a growth of 17.7% from the previous year[382]. - Residential real estate lending loans totaled $1.31 billion, comprising 28.1% of the total loan portfolio, but decreased by 7.9% from $1.43 billion in 2023[384]. Credit Quality - The estimated allowance for credit losses (ACL) totaled $60.1 million, representing approximately 1.29% of total loans, net[199]. - The provision for credit losses decreased by $4.4 million, indicating improved credit quality[339]. - The allowance for credit losses decreased by $5.6 million to $60.1 million at December 31, 2024, from $65.7 million at December 31, 2023, with a ratio of allowance to total loans at 1.29%[394]. - Nonperforming assets totaled $25.9 million, or 0.31% of total assets at December 31, 2024, a decrease of $8.3 million from $34.2 million, or 0.43% at December 31, 2023[401]. - Total loan charge-offs for the year ended December 31, 2024, were $17,850 thousand, compared to $16,058 thousand for the previous year[394]. Deposits and Liquidity - Total on-balance sheet deposits amounted to $7.18 billion as of December 31, 2024, with labor unions contributing $1.99 billion (28%) and political campaigns contributing $969.6 million (14%) to the total[235]. - Total deposits increased to $7.18 billion at December 31, 2024, up from $7.01 billion at December 31, 2023, indicating growth in core deposits[408]. - Uninsured deposits decreased to $3.71 billion at December 31, 2024, from $4.04 billion at December 31, 2023, driven by customers moving excess funds into reciprocal deposit products[412]. - The company had $2.74 billion in cash and borrowing capacity, providing total liquidity of $3.18 billion, covering 86% of total uninsured deposits[418]. - The company maintains sufficient liquidity to meet capital and debt service obligations for 12 months under adverse conditions without support from subsidiaries or access to wholesale markets[414]. Regulatory and Compliance Risks - The company faces liquidity risk, which is essential for funding depositors' needs, repaying borrowings, and meeting other obligations[232]. - Regulatory requirements may impose more stringent capital standards, potentially restricting business activities and affecting profitability[239]. - Non-compliance with laws and regulations could result in fines and damage to reputation, adversely affecting business operations[258]. - The Community Reinvestment Act regulations, effective April 1, 2024, will increase compliance obligations for the company[264]. - The final rule from the CFPB regarding residential PACE financing will become effective on March 1, 2026, potentially increasing compliance costs and risks[210]. Market and Economic Conditions - The Federal Open Market Committee (FOMC) maintained short-term interest rates at a range of 4.25% to 4.50% and projected only two interest rate cuts in 2025[192]. - The company may experience net interest margin compression if interest rates on interest-earning assets do not increase in tandem with interest-bearing liabilities[191]. - The trust and investment management business is vulnerable to economic and market conditions, which can lead to declines in performance and investment management fees[211]. - The banking industry is highly competitive, with technology lowering barriers to entry, necessitating innovation to meet customer needs[249]. - The CFPB's new rule on Personal Financial Data Rights could increase competition and adversely affect the company's market position[250]. Employee and Labor Relations - As of December 31, 2024, the company had 429 employees, with approximately 21% represented by collective bargaining agreements[231]. - A new collective bargaining agreement was entered into on November 29, 2024, providing for a 3.5% wage increase per annum until June 30, 2026[231]. - Compensation and employee benefits increased by $8.0 million in 2024, driven by increased headcount and corporate incentive payments[359]. Investment and Securities - As of December 31, 2024, the fair value of the investment securities portfolio was approximately $3.18 billion[194]. - Total securities amounted to $2.63 billion with an estimated yield of 4.7%[375]. - Approximately 86% of non-agency securities carry AAA credit ratings, indicating a high-quality investment portfolio[375]. - Available-for-sale securities amounted to $1.63 billion at December 31, 2024, compared to $1.48 billion in 2023[365]. - Held-to-maturity securities decreased to $1.59 billion at December 31, 2024, down from $1.70 billion in 2023[366].

Core Insights - The Federal Reserve's 2025 stress test parameters indicate smaller hypothetical shocks to the U.S. economy compared to previous years, leading to a positive market reaction for bank shares [1][2][3] - The 2025 exam features a projected unemployment rate of 10% and a 33% drop in home prices, but with less severe spikes in unemployment and declines in stock and real estate values than in prior tests [2][4] - The changes in the stress test are seen as beneficial for large U.S. banks, suggesting a more favorable regulatory environment under the current administration [4][6] Group 1 - Bank shares, including Citigroup, Goldman Sachs, Morgan Stanley, and Bank of America, experienced notable gains, with Citigroup shares rising by 2.9% [3] - The KBW Bank Index increased by 1.2%, outperforming the S&P Regional Banking ETF, which rose by 0.9% [3] - Analysts believe that the less challenging and more predictable nature of the stress tests will allow banks to maintain smaller capital cushions [5][6] Group 2 - The Federal Reserve plans to enhance the transparency of stress test results and improve model predictability in the upcoming 2025 exam [2][5] - Industry analysts express increased confidence that banks will see relief in regulatory capital requirements due to the anticipated shift towards a more balanced regulatory regime [6]

Financial Data and Key Metrics Changes - The company reported its Q4 2024 earnings, with specific financial metrics to be discussed in detail during the call [1][2] - Forward-looking statements were made regarding potential variances in actual results compared to expectations [5] Business Line Data and Key Metrics Changes - Specific details regarding the performance of various business lines were not provided in the available content [1] Market Data and Key Metrics Changes - No specific market data or key metrics changes were mentioned in the provided content [1] Company Strategy and Development Direction and Industry Competition - The company is expected to discuss its strategic direction and competitive positioning during the call, but specific details were not included in the available content [1][2] Management's Comments on Operating Environment and Future Outlook - Management indicated that forward-looking statements would be made, cautioning that actual results may differ from expectations [5] Other Important Information - A telephonic replay of the call will be available on the company's website, along with a slide deck to complement the discussion [4] Q&A Session All Questions and Answers Question: Availability of telephonic replay - The operator mentioned that a telephonic replay of the call would be available for an extended period [4]

Amalgamated Financial Corp. Fourth Quarter 2024 Earnings Presentation January 23, 2025 Statements included in this presentation that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward- looking statements are not statements of historical or current fact nor are they assurances of future performance and generally can ...

Core Viewpoint - Amalgamated Financial reported quarterly earnings of $0.90 per share, exceeding the Zacks Consensus Estimate of $0.87 per share, and showing an increase from $0.72 per share a year ago, indicating a positive earnings surprise of 3.45% [1][2] Financial Performance - The company achieved revenues of $77.88 million for the quarter ended December 2024, which was below the Zacks Consensus Estimate by 2.28%, but an increase from $76.73 million year-over-year [2] - Over the last four quarters, Amalgamated Financial has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Amalgamated Financial shares have increased approximately 9.4% since the beginning of the year, outperforming the S&P 500's gain of 3.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.83 on revenues of $78.1 million, and for the current fiscal year, it is $3.48 on revenues of $319.4 million [7] Industry Outlook - The Financial - SBIC & Commercial Industry, to which Amalgamated Financial belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Net Interest Margin and Income - Net interest margin expanded 8 basis points to 3.59%[4] - Net interest income grew $1.0 million, or 1.4%, to $73.1 million[4] - Net interest margin improved to 3.59% in Q4 2024, compared to 3.44% in Q4 2023[46] - Net interest income increased to $73,094 thousand in Q4 2024, compared to $67,319 thousand in Q4 2023[49] - Net interest income for December 31, 2024, was $401.3 million, with a yield of 4.99%, compared to $358.1 million and a yield of 4.67% for December 31, 2023[51] - Net Interest Income (GAAP) for the year ended December 31, 2024, was $282.430 million, up from $261.311 million in 2023[59] Loans and Loan Portfolio - Net loans receivable increased $126.4 million, or 2.8%, to $4.6 billion[4] - Total multifamily and commercial real estate loan portfolio of $1.8 billion had concentration of 201% to total risk-based capital[4] - Loans receivable, net of deferred loan origination costs, increased to $4.67 billion as of December 31, 2024, up 5.9% from $4.41 billion in December 2023[43] - Total loans held for investment grew to $4,672,924 thousand in Q4 2024, up from $4,411,319 thousand in Q4 2023[48] - Nonaccrual loans decreased to $21.0 million in December 2024 from $33.2 million in December 2023, reflecting improved asset quality[55] - Nonaccrual loans to total loans decreased to 0.45% in Q4 2024, down from 0.75% in Q4 2023[46] - Criticized and classified loans to total loans ratio improved to 2.06% in December 2024 from 2.48% in December 2023[57] - Net charge-offs for total loans decreased to 0.36% in December 2024 from 0.51% in December 2023, indicating better credit quality[57] - The allowance for credit losses (ACL) to total portfolio balance for total loans decreased to 1.29% in December 2024 from 1.49% in December 2023[57] Deposits - Total deposits decreased $414.0 million, or 5.5%, to $7.2 billion[4] - Total deposits decreased to $7.18 billion as of December 31, 2024, down 2.4% from $7.59 billion in September 2024[43] - Total deposits excluding Brokered CDs reached $7,430,584 thousand in Q4 2024, up from $6,734,844 thousand in Q4 2023[49] - Total deposits excluding Brokered CDs increased to $7.28 billion in 2024 from $6.56 billion in 2023, with a cost of deposits rising from 0.96% to 1.47%[51] - Total deposits increased to $7.18 billion in December 2024 from $7.01 billion in December 2023, with a cost of deposits rising from 1.17% to 1.53%[53] - Non-interest-bearing demand deposit accounts increased to $2.87 billion in December 2024 from $2.94 billion in December 2023, maintaining a 0.00% cost of funds[53] - Super-core deposits are defined as total deposits from customers with a relationship length of over 5 years[34] Net Income and Earnings - Net income of $24.5 million, or $0.79 per diluted share, compared to $27.9 million, or $0.90 per diluted share[4] - Core net income of $28.0 million, or $0.90 per diluted share, compared to $28.0 million, or $0.91 per diluted share[4] - Net income for Q4 2024 was $24.49 million, compared to $22.70 million in Q4 2023, representing a 7.9% increase[41] - Earnings per share (diluted) for Q4 2024 was $0.79, compared to $0.74 in Q4 2023, a 6.8% increase[44] - Core net income (non-GAAP) for the year ended December 31, 2024, was $107.760 million, compared to $90.459 million in 2023[59] Asset Quality and Nonperforming Assets - Total nonperforming assets decreased to $25.9 million in December 2024 from $34.2 million in December 2023, showing improved asset quality[55] - Nonaccrual loans decreased to $21.0 million in December 2024 from $33.2 million in December 2023, reflecting improved asset quality[55] - Criticized and classified loans to total loans ratio improved to 2.06% in December 2024 from 2.48% in December 2023[57] - Net charge-offs for total loans decreased to 0.36% in December 2024 from 0.51% in December 2023, indicating better credit quality[57] - The allowance for credit losses (ACL) to total portfolio balance for total loans decreased to 1.29% in December 2024 from 1.49% in December 2023[57] Capital Ratios and Equity - Common Equity Tier 1 Capital Ratio of 13.90% and Tangible Common Equity Ratio of 8.41%[1] - Tangible book value per share increased $0.31, or 1.4%, to $22.60[4] - Book value per common share (excluding minority interest) increased to $23.07 as of December 31, 2024, up 20.0% from $19.23 in December 2023[44] - Tangible common equity excludes minority interests, preferred stock, goodwill, and core deposit intangibles[35] - Tangible common equity (non-GAAP) as of December 31, 2024, was $693.231 million, up from $570.078 million in 2023[59] - Average tangible common equity (non-GAAP) for the year ended December 31, 2024, was $634.426 million, compared to $515.357 million in 2023[59] Non-Interest Income and Expense - Total non-interest income for Q4 2024 was $4.79 million, a 49.1% decrease from $9.41 million in Q4 2023[41] - Total non-interest expense for Q4 2024 was $41.14 million, up 9.0% from $37.75 million in Q4 2023[41] - Non-interest income (GAAP) for Q4 2024 was $4.789 million, a decrease from $9.406 million in Q4 2023[59] - Core non-interest expense excludes branch closure costs, restructuring, and acquisition-related expenses[30] - Core operating revenue is defined as total net interest income plus core non-interest income[32] - Core operating revenue (non-GAAP) for Q4 2024 was $82.577 million, compared to $75.814 million in Q4 2023, showing a year-over-year increase[59] PACE Assessments - Total PACE assessments grew $17.9 million, or 1.5% to $1.2 billion[4] - Residential PACE assessments available for sale increased to $152,011 thousand in Q4 2024, up from $53,303 thousand in Q4 2023[48] - Total PACE assessments grew to $1,196,625 thousand in Q4 2024, compared to $1,130,572 thousand in Q4 2023[48] Core Metrics and Ratios - Core efficiency ratio is defined as Core non-interest expense divided by Core operating revenue, used for performance comparison[28] - Core net income excludes gains/losses on securities sales, restructuring costs, and other non-core items for clearer performance evaluation[29] - Core return on average assets is calculated as Core net income divided by average total assets[32] - Core return on average tangible common equity is Core net income divided by average tangible common equity[33] - Core return on average tangible common equity (non-GAAP) was 16.13% in Q4 2024, compared to 16.22% in Q4 2023[46] Miscellaneous - Total assets as of December 31, 2024, were $8.3 billion, with total net loans at $4.6 billion and total deposits at $7.2 billion[25] - Trust business held $35.0 billion in assets under custody and $14.6 billion in assets under management as of December 31, 2024[25] - Total assets grew to $8.26 billion as of December 31, 2024, a 3.6% increase from $7.97 billion in December 2023[43] - Total interest-earning assets increased to $8.04 billion in 2024 from $7.66 billion in 2023, with a yield increase from 4.67% to 4.99%[51] - Weighted average common shares outstanding (diluted) for Q4 2024 was 30.98 million, up 1.2% from 30.62 million in Q4 2023[44] - Return on average assets increased to 1.17% in Q4 2024, up from 1.13% in Q4 2023[46] - Loan yield rose to 5.00% in Q4 2024, up from 4.68% in Q4 2023[46] - Securities loss for Q4 2024 was $1.003 million, down from $2.340 million in Q4 2023[59] - ICS One-Way Sell Fee Income for the year ended December 31, 2024, was $(17.194) million, compared to $0 in 2023[59] - Changes in fair value of loans held-for-sale for the year ended December 31, 2024, was $8.383 million, compared to $0 in 2023[59] - Severance costs for the year ended December 31, 2024, were $(472) thousand, compared to $(665) thousand in 2023[59]

Financial Performance - Net income for Q4 2024 was $24.5 million, or $0.79 per diluted share, compared to $27.9 million, or $0.90 per diluted share in the previous quarter [6][9] - Core net income for Q4 2024 was $28.0 million, or $0.90 per diluted share, flat compared to the previous quarter [6][10] - Full year 2024 net income was $106.4 million, or $3.44 per diluted share, a 20.9% increase from 2023 [7] - Core net income for full year 2024 was $107.8 million, or $3.48 per diluted share, a 19.1% increase from 2023 [7] Deposits and Liquidity - Total deposits decreased by $414.0 million (5.5%) to $7.2 billion in Q4 2024, driven by political deposit outflows [6] - Political deposits decreased by $992.3 million to $969.6 million in Q4 2024 [6] - Off-balance sheet deposits peaked at $1.3 billion during Q4 2024 but ended the quarter at zero [6] - Cash and borrowing capacity totaled $3.2 billion, covering 86% of total uninsured deposits [6] Loans and Credit Quality - Net loans receivable increased by $126.4 million (2.8%) to $4.6 billion in Q4 2024 [6] - Total multifamily and commercial real estate loan portfolio was $1.8 billion, representing 201% of total risk-based capital [6] - Nonperforming assets decreased by $2.7 million to $25.9 million (0.31% of total assets) in Q4 2024 [21] - Allowance for credit losses on loans decreased by $1.4 million to $60.1 million (1.29% of total loans) in Q4 2024 [22] Capital and Returns - Common Equity Tier 1 Capital Ratio improved to 13.90% in Q4 2024, up from 13.82% in Q3 2024 [24] - Tangible common equity ratio improved to 8.41% in Q4 2024, marking the ninth consecutive quarter of improvement [6] - Tangible book value per share increased by $0.31 (1.4%) to $22.60 in Q4 2024 [6] - Core return on average tangible common equity was 16.13% in Q4 2024 [6] Net Interest Margin and Income - Net interest margin expanded by 8 basis points to 3.59% in Q4 2024 [6] - Net interest income grew by $1.0 million (1.4%) to $73.1 million in Q4 2024 [6] - Loan interest income increased by $3.9 million in Q4 2024, driven by a $126.2 million increase in average loan balances [11] - Interest expense on total interest-bearing deposits decreased by $1.5 million in Q4 2024, primarily due to a 39 basis point decrease in cost [11] Share Repurchase and Dividends - Repurchased approximately 25,000 shares, or $0.8 million of common stock in Q4 2024 under the $40 million share repurchase program [4] - $18.7 million of remaining capacity under the share repurchase program as of Q4 2024 [4] - Paid $3.7 million in dividends at $0.12 per outstanding share in Q4 2024 [24]

Core Viewpoint - Amalgamated Financial Corp. has announced a 17% increase in its quarterly dividend, raising it to $0.14 per common share, payable on February 27, 2025, to stockholders of record on February 11, 2025 [1]. Company Overview - Amalgamated Financial Corp. is a Delaware public benefit corporation and a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank [2]. - Amalgamated Bank, established in 1923, operates as a full-service commercial bank and chartered trust company with five branches across New York City, Washington D.C., and San Francisco, along with a commercial office in Boston [2]. - As of September 30, 2024, Amalgamated Bank reported total assets of $8.4 billion, total net loans of $4.5 billion, and total deposits of $7.6 billion [2]. - The trust business of Amalgamated Bank held $35.4 billion in assets under custody and $14.6 billion in assets under management as of September 30, 2024 [2].

Company Announcements - Amalgamated Financial Corp will release its Q4 and full year 2024 financial results before market open on January 23, 2025 [2] - The company will host a conference call at 11:00 a m Eastern Time on January 23, 2025 to discuss the financial results [2] - A replay of the conference call will be available within two hours after the call and accessible online or by phone until January 30, 2025 [1] Company Overview - Amalgamated Financial Corp is a Delaware public benefit corporation and bank holding company engaged in commercial banking and financial services through its subsidiary Amalgamated Bank [3] - Amalgamated Bank is a New York-based full-service commercial bank and chartered trust company with 5 branches across New York City, Washington D C, and San Francisco, plus a commercial office in Boston [3] - The bank was founded in 1923 by the Amalgamated Clothing Workers of America and provides commercial banking and trust services nationally [3] - As of September 30, 2024, the company had total assets of $8 4 billion, total net loans of $4 5 billion, and total deposits of $7 6 billion [3] - The trust business held $35 4 billion in assets under custody and $14 6 billion in assets under management as of September 30, 2024 [3] Investor Relations - Investors and analysts can participate in the conference call by dialing 1-877-407-9716 (international callers dial 1-201-493-6779) 10 minutes prior to the call [4] - A live audio webcast of the conference call will be available on the company's investor relations website [4] - Investor contact information is provided for Jamie Lillis at Solebury Strategic Communications [5]

Back in May of this year, I wrote my first-ever article about Amalgamated Financial (NASDAQ: AMAL ). Like any bank, it engages in traditional banking activities for its customers. However, it is an enterprise that has specificCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow an ...