Amalgamated Financial Corp. Reports Record Third Quarter 2024 Financial Results; Margin Expands to 3.51%; Return on Average Assets of 1.32%

Core Insights - Amalgamated Financial Corp. reported a net income of $27.9 million for Q3 2024, an increase from $26.8 million in Q2 2024, driven by growth in non-core income and net interest income [2][6][9] - The company achieved a core net income of $28.0 million, or $0.91 per diluted share, compared to $26.2 million, or $0.85 per diluted share in the previous quarter [2][8] Deposits and Liquidity - Total deposits rose by $145.6 million, or 2.0%, to $7.6 billion, with a notable increase in political deposits by $231.9 million, or 13%, reaching $2.0 billion [3][14] - On-balance sheet deposits, excluding Brokered CDs, increased by $196.9 million, or 2.7%, to $7.5 billion [3][14] - The average cost of deposits, excluding Brokered CDs, increased by 3 basis points to 151 basis points, with non-interest-bearing deposits comprising 51% of total deposits [3][14] Assets and Margin - Net loans receivable increased by $78.0 million, or 1.8%, to $4.5 billion, with significant growth in multifamily, commercial and industrial, and commercial real estate loans [4][13] - Net interest income grew by $2.9 million, or 4.2%, to $72.1 million, with a net interest margin of 3.51%, up 5 basis points from the previous quarter [4][10] Capital and Returns - The Tier 1 leverage ratio improved to 8.63%, and the Common Equity Tier 1 ratio reached 13.82% [5][17] - Tangible book value per share increased by $1.69, or 8.2%, to $22.29, marking a 27.9% increase since September 2023 [5][17] Non-Interest Income and Expenses - Non-interest income for Q3 2024 was $8.9 million, a slight decrease from $9.3 million in Q2 2024, while core non-interest income rose to $8.8 million [11] - Non-interest expense increased by $1.5 million to $41.0 million, primarily due to higher compensation and employee benefits expenses [11] Tax and Balance Sheet Summary - The provision for income tax expense was $10.3 million, with an effective tax rate of 26.9% for Q3 2024 [12] - Total assets grew to $8.4 billion, with significant increases in cash and cash equivalents and net loans receivable [12][32]