Amalgamated Financial Corp (AMAL) Reports Q3 2023 Financial Results
Amalgamated Financial Corp (NASDAQ:AMAL) reported a net income of $22.3 million, or $0.73 per diluted share, compared to $21.6 million, or $0.70 per diluted share in the previous quarter.
Total deposits increased by $96.2 million, or 1.4%, to $7.0 billion, including a $76.6 million decline in Brokered CDs.
Loans receivable, net of deferred loan origination costs, increased by $113.0 million, or 2.7%, to $4.4 billion.
Common Equity Tier 1 Capital Ratio stood at 12.63%.
Amalgamated Financial Corp (NASDAQ:AMAL) announced its financial results for the third quarter ended September 30, 2023, on October 26, 2023. The company reported a stable net interest margin at 3.29% and a significant deposit growth excluding Brokered CDs of $172.8 million.
Financial Performance
AMAL's net income for the third quarter of 2023 was $22.3 million, or $0.73 per diluted share, compared to $21.6 million, or $0.70 per diluted share, for the second quarter of 2023. The increase was primarily driven by a $1.9 million decrease in the provision for credit losses, a $0.7 million increase in net interest income, and a $0.2 million decrease in non-interest expense.
Deposits and Liquidity
Total deposits increased by $96.2 million, or 1.4%, to $7.0 billion, including a $76.6 million decline in Brokered CDs. Excluding Brokered CDs, deposits increased by $172.8 million or 2.7% to $6.6 billion. Political deposits increased by $115.4 million, or 13.8%, to $951.2 million.
Assets and Margin
Loans receivable, net of deferred loan origination costs, increased by $113.0 million, or 2.7%, to $4.4 billion. Net interest income was $63.7 million and net interest margin was 3.29%, each better than the guidance range provided in the second quarter.
Investments and Capital
The company's tangible common equity ratio of 6.72% represents another consecutive quarter of improvement. The leverage ratio increased 11 basis points from the prior quarter to 7.89% and the Common Equity Tier 1 ratio stood at 12.63%, representing a conservative asset mix.
Share Repurchase
AMAL repurchased approximately 142,000 shares, or $2.6 million of common stock under the Companys $40 million share repurchase program announced in the first quarter of 2022, with $20.9 million of remaining capacity.
Priscilla Sims Brown, President and Chief Executive Officer, commented,
We are in the midst of turning over an older balance sheet as our lower yielding residential loans, multi-family loans and securities roll off over the next twelve to eighteen months and are replaced with higher yielding loans and PACE securities. When paired with our deposit franchise, I am excited about our prospects for margin expansion during 2024.
Explore the complete 8-K earnings release (here) from Amalgamated Financial Corp for further details.
This article first appeared on GuruFocus.
