Amalgamated Financial Corp. (AMAL) Bundle
A Brief History of Amalgamated Financial Corp.
Company Overview
Amalgamated Financial Corp. is a publicly traded financial institution, primarily serving commercial and retail banking clients. As of September 30, 2024, the company reported total assets of $8.41 billion, an increase from $7.97 billion at the end of 2023.
Financial Performance
For the third quarter of 2024, Amalgamated Financial Corp. achieved a net income of $27.9 million, or $0.90 per diluted share, compared to $22.3 million, or $0.73 per diluted share, in the same quarter of 2023. For the nine months ended September 30, 2024, the net income was $81.9 million, or $2.65 per diluted share, versus $65.3 million, or $2.12 per diluted share, in 2023.
Balance Sheet Highlights
As of September 30, 2024, the following balance sheet highlights were reported:
| Item | Amount (in thousands) |
|---|---|
| Total Assets | $8,393,490 |
| Total Liabilities | $7,725,089 |
| Stockholders' Equity | $668,401 |
| Total Deposits | $7,582,337 |
Investment Securities
As of September 30, 2024, Amalgamated Financial Corp. held $1.77 billion in available-for-sale securities and $1.61 billion in held-to-maturity securities. The company reported a net realized loss of $8.7 million from available-for-sale securities during the nine months ended September 30, 2024.
Net Interest Income
The net interest income for the third quarter of 2024 was $72.1 million, a 13.2% increase from $63.7 million in the third quarter of 2023. The net interest margin improved to 3.51% from 3.29% year-over-year.
Provision for Credit Losses
For the nine months ended September 30, 2024, the provision for credit losses totaled $6.6 million, a decrease from $10.9 million in the same period of 2023. The allowance for credit losses stood at $61.5 million as of September 30, 2024.
Stockholder Equity
The total stockholders' equity at September 30, 2024, was $698.3 million, reflecting an increase from $585.4 million at January 1, 2024. The company repurchased 62,346 shares during the nine months ended September 30, 2024.
Tax Expenses
Amalgamated Financial Corp. reported an income tax expense of $30.6 million for the nine months ended September 30, 2024, compared to $24.2 million in the same period in 2023. The effective tax rate for this period was 27.2%.
Employee Stock Options
As of September 30, 2024, the company had 157,500 options outstanding with a weighted average exercise price of $13.53. Compensation expense attributable to restricted stock units and performance share units was $1.2 million for the three months ended September 30, 2024.
A Who Owns Amalgamated Financial Corp. (AMAL)
Ownership Structure
As of September 30, 2024, the total number of shares of common stock outstanding for Amalgamated Financial Corp. was 30,662,883 shares.
Major Shareholders
The following table outlines the major shareholders of Amalgamated Financial Corp. as of 2024:
| Shareholder | Number of Shares | Percentage Ownership |
|---|---|---|
| Workers United | 61,300,000 | 20.00% |
| BlackRock, Inc. | 2,500,000 | 8.17% |
| Vanguard Group, Inc. | 2,350,000 | 7.67% |
| State Street Corporation | 2,100,000 | 6.85% |
| Other Institutional Investors | 5,000,000 | 16.30% |
| Insider Holdings | 4,000,000 | 13.09% |
Stock Performance
The stock price of Amalgamated Financial Corp. (AMAL) was approximately $25.00 per share as of the end of September 2024.
Market Capitalization
As of September 30, 2024, the market capitalization of Amalgamated Financial Corp. was approximately $766.57 million.
Financial Overview
Amalgamated Financial Corp. reported total assets of $8.41 billion and total liabilities of $7.71 billion as of September 30, 2024.
Recent Financial Results
- Net income for the third quarter of 2024 was $27.94 million.
- Total stockholders' equity stood at $698.3 million.
- Nonperforming assets totaled $28.6 million, representing 0.34% of total assets.
- Provision for credit losses was $1.8 million for the third quarter of 2024.
Regulatory Capital Ratios
The following table summarizes the regulatory capital ratios for Amalgamated Financial Corp. as of September 30, 2024:
| Capital Measure | Amount (in thousands) | Ratio |
|---|---|---|
| Total capital to risk-weighted assets | $858,224 | 16.25% |
| Tier 1 capital to risk-weighted assets | $729,819 | 13.82% |
| Common equity tier 1 to risk-weighted assets | $729,819 | 13.82% |
| Tier 1 capital to average assets | $729,819 | 8.63% |
Amalgamated Financial Corp. (AMAL) Mission Statement
Company Overview
As of September 30, 2024, Amalgamated Financial Corp. operates primarily as a financial institution focused on delivering a comprehensive suite of commercial and retail banking, investment management, and trust and custody services. The company was formed to serve as the holding company for Amalgamated Bank, which was originally established in 1923. The bank is known for its commitment to social responsibility and aims to be a financial partner for organizations and individuals that prioritize community impact and social justice.
Mission Statement
Amalgamated Financial Corp. is dedicated to being a leading financial partner for those who strive to make a meaningful impact in society. The mission emphasizes a commitment to serving advocacy-based non-profits, social welfare organizations, labor unions, and socially responsible businesses. The core values of the organization include:
- Social Responsibility
- Community Engagement
- Customer-Centric Approach
- Environmental Stewardship
- Commitment to Social Justice
Financial Overview
As of September 30, 2024, the financial highlights of Amalgamated Financial Corp. are as follows:
| Metric | Amount (in billions) |
|---|---|
| Total Assets | $8.41 |
| Total Loans (net of allowance for credit losses) | $4.49 |
| Total Deposits | $7.59 |
| Stockholders' Equity | $0.698 |
| Trust Assets Under Custody | $35.43 |
| Assets Under Management | $14.55 |
Investment Strategy
The investment strategy of Amalgamated Financial Corp. is designed to ensure liquidity while achieving efficient returns on excess capital. The company maintains a low-risk profile in its securities portfolio, which includes:
- Government Sponsored Entities (GSE) securities
- Residential and Commercial Property Assessed Clean Energy (PACE) assessments
- Asset-Backed Securities (ABS)
As of September 30, 2024, the fair value of available-for-sale securities was $1.77 billion, while held-to-maturity securities had a fair value of $1.61 billion.
Social Impact and Community Engagement
Amalgamated Financial Corp. is committed to creating positive change through its banking services, which are tailored for socially responsible clients. The company actively engages in community initiatives and supports organizations that align with its values. This commitment is reflected in the company’s focus on:
- Supporting local economies
- Providing financial literacy programs
- Encouraging sustainable business practices
Recent Financial Performance
For the nine months ended September 30, 2024, Amalgamated Financial Corp. reported a net income of $81.94 million, compared to $65.28 million for the same period in 2023. The effective tax rate for the period was 27.2%.
The company’s balance sheet reflects robust growth, with total assets increasing from $7.97 billion at the end of 2023 to $8.41 billion by September 30, 2024. Significant increases in deposits and loans indicate strong customer confidence and market positioning.
Conclusion
Amalgamated Financial Corp.'s mission statement and operational strategy underscore its commitment to social responsibility and community engagement while achieving sustainable financial performance. The company seeks to balance profitability with positive societal impact, aligning its business objectives with the values of its clients.
How Amalgamated Financial Corp. (AMAL) Works
Overview of Amalgamated Financial Corp.
Amalgamated Financial Corp. (AMAL) operates as a bank holding company engaged in providing a range of financial services. The company primarily focuses on commercial banking, including deposits, loans, and investment services, catering to both individual and business clients.
Financial Performance
As of September 30, 2024, Amalgamated Financial Corp. reported total assets of $8.39 billion, an increase from $7.90 billion at the end of 2023. The company's net income for the nine months ended September 30, 2024, was $81.94 million, compared to $65.28 million for the same period in 2023.
Balance Sheet Summary
| Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $8,393,490 | $7,904,566 |
| Total Liabilities | $7,725,089 | $7,365,813 |
| Stockholders' Equity | $668,401 | $538,753 |
Deposits
Total deposits reached $7.59 billion at September 30, 2024, compared to $7.01 billion at December 31, 2023. The breakdown of deposit types is as follows:
| Deposit Type | Amount ($) | Weighted Average Rate (%) |
|---|---|---|
| Non-interest-bearing demand deposits | 3,801,834 | 0.00 |
| NOW accounts | 186,557 | 0.90 |
| Money market accounts | 2,959,264 | 3.00 |
| Savings accounts | 327,935 | 1.42 |
| Time deposits | 216,901 | 3.83 |
| Brokered CDs | 102,073 | 4.89 |
Loan Portfolio
Amalgamated Financial Corp.'s loan portfolio has shown growth, with net loans totaling $4.49 billion at September 30, 2024. The provision for credit losses was $6.6 million for the nine months ended September 30, 2024, a decrease from $10.9 million for the same period in 2023.
Investment Securities
The company's investment securities portfolio includes both available-for-sale and held-to-maturity securities, totaling $1.77 billion and $1.61 billion, respectively, as of September 30, 2024. The fair value of available-for-sale securities was $1.21 billion, with held-to-maturity securities valued at $526.1 million.
Income Statement Highlights
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Interest Income | $72.1 million | $63.7 million |
| Net Interest Margin | 3.51% | 3.29% |
| Net Income | $27.94 million | $22.31 million |
| Diluted Earnings per Share | $0.90 | $0.73 |
Market Position and Strategy
Amalgamated Financial Corp. strategically focuses on relationship-based banking, emphasizing community values and mission-driven initiatives. This approach has helped in maintaining a strong deposit franchise and expanding its customer base.
Credit Quality
As of September 30, 2024, nonperforming assets totaled $28.6 million, representing 0.34% of total assets. Potential problem loans amounted to $82.1 million, or 1.0% of total assets, indicating a proactive approach to managing credit risk.
How Amalgamated Financial Corp. (AMAL) Makes Money
Net Interest Income
Amalgamated Financial Corp. generates significant revenue through net interest income, which was reported as $209.3 million for the nine months ended September 30, 2024, compared to $194.0 million for the same period in 2023. This represents a year-over-year increase of 7.9%, primarily driven by higher yields and average balances on interest-earning assets.
The net interest spread decreased to 2.08% for the nine months ended September 30, 2024, down from 2.41% in 2023. However, the net interest margin improved slightly to 3.48%, up from 3.40%.
Loan Portfolio
As of September 30, 2024, Amalgamated Financial Corp. reported total loans of $4.49 billion, an increase from $4.35 billion at year-end 2023. The composition of the loan portfolio is as follows:
| Loan Type | Amount (in $ thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial and Industrial | 1,058,376 | 23.3% |
| Multifamily Mortgages | 1,291,380 | 28.4% |
| Commercial Real Estate Mortgages | 415,077 | 9.1% |
| Residential Real Estate Lending | 1,350,347 | 29.7% |
| Consumer Solar | 374,499 | 8.2% |
| Consumer and Other | 36,000 | 0.8% |
| Total Loans | 4,547,903 | 100.0% |
Securities Portfolio
Amalgamated's securities portfolio is a crucial element of its earnings strategy, primarily consisting of high-quality investments in mortgage-backed securities. As of September 30, 2024, the portfolio's value was $919.9 million, with the following breakdown:
| Security Type | Amount (in $ thousands) | Percentage of Total Securities |
|---|---|---|
| Commercial & Industrial CLOs | 539,455 | 59% |
| Consumer ABS | 205,420 | 22% |
| Mortgage-Backed Securities | 99,884 | 11% |
| Student Loans | 75,170 | 8% |
| Total Securities | 919,929 | 100% |
Non-Interest Income
Non-interest income contributes to Amalgamated's revenue, although specific figures for 2024 are not detailed in the latest reports. Historically, this includes service fees, transaction fees, and other banking-related incomes. In 2023, total non-interest income was reported at $8.1 million.
Cost of Funds
The average rate on interest-bearing liabilities increased to 2.89% for the nine months ended September 30, 2024, compared to 2.19% in 2023. This reflects rising interest rates affecting the cost of funds across various deposit types.
Credit Losses
Amalgamated Financial Corp. established a provision for credit losses totaling $6.6 million for the nine months ended September 30, 2024, down from $10.9 million in the same period in 2023. This reduction highlights improved credit quality and risk management.
Equity and Market Performance
As of September 30, 2024, Amalgamated Financial Corp. reported stockholders' equity of $668.4 million, up from $538.8 million at December 31, 2023. The company’s earnings per share (EPS) for the nine months ended September 30, 2024, were $2.68, compared to $2.13 in 2023.
Funding Sources
Amalgamated Financial Corp. primarily funds its loans through deposits. Total deposits amounted to $7.58 billion as of September 30, 2024, with an average cost of deposits at 1.58%.
The bank's funding strategy effectively utilizes both interest-bearing and non-interest-bearing deposits, ensuring a stable source of capital for lending activities.
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Resources:
- Amalgamated Financial Corp. (AMAL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Amalgamated Financial Corp. (AMAL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Amalgamated Financial Corp. (AMAL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.