Amalgamated Financial (AMAL) - 2024 Q4 - Annual Results

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]