• Amalgamated Financial Corp. Reports First Quarter 2024 Financial Results; Stellar Deposit Growth; Net Interest Margin Rises to 3.49%

    المصدر: Nasdaq GlobeNewswire / 25 أبريل 2024 06:25:36   America/New_York

    NEW YORK, April 25, 2024 (GLOBE NEWSWIRE) -- Amalgamated Financial Corp. (the “Company” or “Amalgamated”) (Nasdaq: AMAL), the holding company for Amalgamated Bank (the “Bank”), today announced financial results for the first quarter ended March 31, 2024.

    First Quarter 2024 Highlights (on a linked quarter basis)

    • Net income of $27.2 million, or $0.89 per diluted share, compared to $22.7 million, or $0.74 per diluted share.
    • Core net income1 of $25.6 million, or $0.83 per diluted share, compared to $22.1 million, or $0.72 per diluted share.

    Deposits and Liquidity

    • Total deposits increased $293.8 million, or 4.2%, to $7.3 billion including an $80.0 million decline in Brokered CDs.
    • Excluding Brokered CDs, on-balance sheet deposits increased $373.8 million, or 5.5%, to $7.1 billion.
    • Political deposits increased $250.4 million, or 21%, to $1.4 billion.
    • Off-balance sheet deposits totaled $456.8 million, comprised primarily of transactional political deposits and transitional deposits scheduled for our Trust business.
    • Average cost of deposits, excluding Brokered CDs, increased 11 basis points to 136 basis points for the quarter, where non-interest-bearing deposits comprised 44.5% of total deposits, nearly identical to the prior quarter.

    Assets and Margin

    • Net loans receivable increased $13.8 million, or 0.3%, to $4.4 billion.
    • Total PACE assessments grew $10.1 million, or 0.9%, to $1.1 billion.
    • Net interest income grew $0.7 million, or 1.1%, to $68.0 million.
    • Net interest margin expanded 5 basis points to 3.49%.

    Capital and Returns

    • Leverage ratio of 8.29%, increasing 22 basis points, and Common Equity Tier 1 ratio of 13.68%.
    • Tangible common equity1 ratio of 7.41%, representing the sixth consecutive quarter of improvement.
    • Tangible book value per share1 increased $0.99, or 5.3%, to $19.73.
    • Strong core return on average tangible common equity1 of 17.59%.

    Share Repurchase

    • Repurchased approximately 10,000 shares, or $0.2 million of common stock under the Company’s $40 million share repurchase program announced in the first quarter of 2022, with $19.5 million of remaining capacity.

    Priscilla Sims Brown, President and Chief Executive Officer, commented, “Our first quarter results show Amalgamated as a banking industry leader and we proved once again that our unique and valuable business model is well positioned to thrive in varying economic conditions. This clearly separates Amalgamated from our peers and affirms my incredible optimism for the future.”

    _________________________
    1 Reconciliations of non-GAAP financial measures to the most comparable GAAP measure are set forth on the last page of the financial information accompanying this press release and may also be found on our website, www.amalgamatedbank.com.

    First Quarter Earnings

    Net income for the first quarter of 2024 was $27.2 million, or $0.89 per diluted share, compared to $22.7 million, or $0.74 per diluted share, for the fourth quarter of 2023. The $4.5 million increase during the quarter was primarily driven by a $2.2 million decrease in provision for credit losses, a $1.2 million decrease in income tax expense, a $0.8 million increase in non-interest income, and a $0.7 million increase in net interest income.

    Core net income1 for the first quarter of 2024 was $25.6 million, or $0.83 per diluted share, compared to $22.1 million, or $0.72 per diluted share, for the fourth quarter of 2023. Excluded from core net income for the quarter, pre-tax, was $2.9 million of ICS One-Way Sell fee income, $2.8 million of losses on the sale of securities, $1.8 million of tax credits from solar tax equity investments, $0.5 million in gains on the settlement of a lease termination, and $0.2 million in severance costs. Excluded from core net income for the fourth quarter of 2023, pre-tax, was $2.3 million of losses on the sale of securities and $3.3 million of tax credits from our solar tax equity investments.

    Net interest income was $68.0 million for the first quarter of 2024, compared to $67.3 million for the fourth quarter of 2023. Loan interest income increased $0.4 million driven by a $19.5 million increase in average loan balances coupled with an 8 basis point increase in loan yields. Interest income on securities decreased $0.7 million driven by a decrease in the average balance of securities of $5.4 million. Interest income on resell agreements increased $1.1 million driven by a $62.2 million increase in the average balance and a 32 basis point increase in yields. The increase in interest income was offset by higher interest expense on total interest-bearing deposits of $0.6 million driven by an 18 basis point increase in cost offset by a decrease in the average balance of total interest-bearing deposits of $152.4 million. The changes in deposit costs were primarily related to increased rates on select non-time deposit products and a 29 basis point increase in the cost of time deposits. The decrease in the average balance of interest-bearing deposits was primarily driven by a decrease in the average balance of higher cost brokered deposits of $119.1 million.

    Net interest margin was 3.49% for the first quarter of 2024, an increase of 5 basis points from 3.44% in the fourth quarter of 2023. The increase is largely due to increased yields on increased loan related average balances. In addition, $81.2 million in short-term resell agreements were deployed to utilize excess deposit liquidity. Prepayment penalties had no impact on our net interest margin in the first quarter of 2024, which is the same as in the prior quarter.

    Provision for credit losses totaled an expense of $1.6 million for the first quarter of 2024 compared to an expense of $3.8 million in the fourth quarter of 2023. The expense in the first quarter is primarily driven by increases in specific loan reserves, charge-offs on the solar loan portfolio, and an increase in reserve for multifamily loans to reflect the current market repricing conditions, offset by improvements in macro-economic forecasts used in the CECL model.

    Non-interest income was $10.2 million for the first quarter of 2024, compared to $9.4 million in the fourth quarter of 2023. Core non-interest income1 was $8.3 million for the first quarter of 2024, compared to $8.5 million in the fourth quarter of 2023. The decrease was primarily related to lower BOLI income and commercial banking fees, offset by an increase from fees from our treasury investment services.

    Non-interest expense for the first quarter of 2024 was $38.2 million, an increase of $0.4 million from the fourth quarter of 2023. Core non-interest expense1 for the first quarter of 2024 was $38.5 million, an increase of $0.8 million from the fourth quarter of 2023. This was mainly driven by a $1.1 million increase in compensation and employee benefits expense due to select differential investments in employees as well as increased payroll taxes.

    Our provision for income tax expense was $11.3 million for the first quarter of 2024, compared to $12.5 million for the fourth quarter of 2023. In the prior quarter a state and city tax examination resulted in a $3.3 million adjustment, while the conclusion of the analysis in the first quarter of 2024 resulted in an adjustment of $0.9 million. Excluding the tax adjustment, our effective tax rate for the first quarter of 2024 was 26.9%, compared to 26.2% for the fourth quarter of 2023.

    Balance Sheet Quarterly Summary

    Total assets were $8.1 billion at March 31, 2024, compared to $8.0 billion at December 31, 2023, in line with our strategy to keep our balance sheet growth flat. Notable changes within individual balance sheet line items include an $81.2 million increase in resell agreements, a $64.6 million increase in cash and cash equivalents, a $22.1 million increase in securities, and a $13.8 million increase in net loans receivable. Additionally, deposits excluding Brokered CDs increased by $373.8 million while Brokered CDs decreased $80.0 million, and other borrowings decreased by $165.3 million. Our off-balance sheet deposits increased $153.7 million, or 51%, to $456.8 million.

    Total net loans receivable, at March 31, 2024 were $4.4 billion, an increase of $13.8 million, or 0.3% for the quarter. The increase in loans is primarily driven by a $27.3 million increase in multifamily loans, and a $3.1 million increase in commercial and industrial loans, offset by a $9.8 million decrease in consumer solar loans, and a $6.3 million decrease in residential loans. During the quarter, criticized or classified loans decreased $9.0 million largely related to the payoff of $7.0 million of commercial and industrial loans and an upgrade of $3.0 million of commercial and industrial loans.

    Total deposits at March 31, 2024 were $7.3 billion, an increase of $293.8 million, or 4.2%, during the quarter. Total deposits excluding Brokered CDs increased by $373.8 million to $7.1 billion, or a 5.5% increase. Deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $1.4 billion as of March 31, 2024, an increase of $250.4 million during this quarter, of which a substantial portion were moved off-balance sheet. Non-interest-bearing deposits represented 44% of average total deposits and 44% of ending total deposits for the quarter, contributing to an average cost of total deposits of 146 basis points. Super-core deposits2 totaled approximately $4.0 billion, had a weighted average life of 17 years, and comprised 55% of total deposits, excluding Brokered CDs. Total uninsured deposits were $4.1 billion, comprising 56% of total deposits. Excluding uninsured super-core deposits of approximately $2.9 billion, remaining uninsured deposits were approximately 16%-19% of total deposits with immediate liquidity coverage of 323%.

    Nonperforming assets totaled $34.0 million, or 0.42% of period-end total assets at March 31, 2024, a decrease of $0.2 million, compared with $34.2 million, or 0.43% on a linked quarter basis. The decrease in nonperforming assets was primarily driven by a $2.5 million decrease in residential real estate nonaccrual loans, offset by a $1.2 million increase in commercial and industrial nonaccrual loans, and a $1.2 million increase in consumer solar nonaccrual loans.

    During the quarter, the allowance for credit losses on loans decreased $1.3 million to $64.4 million. The ratio of allowance to total loans was 1.46%, a decrease of 3 basis points from 1.49% in the fourth quarter of 2023.

    Capital Quarterly Summary

    As of March 31, 2024, our Common Equity Tier 1 Capital ratio was 13.68%, Total Risk-Based Capital ratio was 16.35%, and Tier-1 Leverage Capital ratio was 8.29%, compared to 12.98%, 15.64% and 8.07%, respectively, as of December 31, 2023. Stockholders’ equity at March 31, 2024 was $616.9 million, an increase of $31.5 million during the quarter. The increase in stockholders’ equity was primarily driven by $27.2 million of net income for the quarter and a $7.1 million improvement in accumulated other comprehensive loss due to the tax effected mark-to-market on our available for sale securities portfolio, offset by $3.1 million in dividends paid at $0.10 per outstanding share, and $0.2 million of common stock repurchases.

    Tangible book value per share was $19.73 as of March 31, 2024 compared to $18.74 as of December 31, 2023. Tangible common equity improved to 7.41% of tangible assets, compared to 7.16% as of December 31, 2023.

    _________________________

    2 Refer to Terminology on page 5 for definitions of certain terms used in this release.

    Conference Call

    As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its first quarter 2024 results today, April 25, 2024 at 11:00am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. First Quarter 2024 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13745544. The telephonic replay will be available until May 2, 2024.

    Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of our website at https://ir.amalgamatedbank.com/. The online replay will remain available for a limited time beginning immediately following the call.

    The presentation materials for the call can be accessed on the investor relations section of our website at https://ir.amalgamatedbank.com/.

    About Amalgamated Financial Corp.

    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. Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country's oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. As of March 31, 2024, our total assets were $8.1 billion, total net loans were $4.4 billion, and total deposits were $7.3 billion. Additionally, as of March 31, 2024, our trust business held $35.0 billion in assets under custody and $13.9 billion in assets under management.

    Non-GAAP Financial Measures

    This release (and the accompanying financial information and tables) refer to certain non-GAAP financial measures including, without limitation, “Core operating revenue,” “Core non-interest expense,” “Core non-interest income,” “Core net income,” “Tangible common equity,” “Average tangible common equity,” “Core return on average assets,” “Core return on average tangible common equity,” and “Core efficiency ratio.”

    Our management utilizes this information to compare our operating performance for March 31, 2024 versus certain periods in 2024 and 2023 and to prepare internal projections. We believe these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of our operating performance. In addition, because intangible assets such as goodwill and other discrete items unrelated to our core business, which are excluded, vary extensively from company to company, we believe that the presentation of this information allows investors to more easily compare our results to those of other companies.

    The presentation of non-GAAP financial information, however, is not intended to be considered in isolation or as a substitute for GAAP financial measures. We strongly encourage readers to review the GAAP financial measures included in this release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this release with other companies’ non-GAAP financial measures having the same or similar names. Reconciliations of non-GAAP financial disclosures to comparable GAAP measures found in this release are set forth in the final pages of this release and also may be viewed on our website, amalgamatedbank.com.

    Terminology

    Certain terms used in this release are defined as follows:

    “Core efficiency ratio” is defined as “Core non-interest expense” divided by “Core operating revenue.” We believe the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income.

    “Core net income” is defined as net income after tax excluding gains and losses on sales of securities, ICS One-Way Sell fee income, gains on the sale of owned property, costs related to branch closures, restructuring/severance costs, acquisition costs, tax credits and accelerated depreciation on solar equity investments, and taxes on notable pre-tax items. We believe the most directly comparable GAAP financial measure is net income.

    “Core non-interest expense” is defined as total non-interest expense excluding costs related to branch closures, restructuring/severance, and acquisitions. We believe the most directly comparable GAAP financial measure is total non-interest expense.

    “Core non-interest income” is defined as total non-interest income excluding gains and losses on sales of securities, ICS One-Way Sell fee income, gains on the sale of owned property, and tax credits and accelerated depreciation on solar equity investments. We believe the most directly comparable GAAP financial measure is non-interest income.

    “Core operating revenue” is defined as total net interest income plus “core non-interest income”. We believe the most directly comparable GAAP financial measure is the total of net interest income and non-interest income.

    “Core return on average assets” is defined as “Core net income” divided by average total assets. We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets.

    “Core return on average tangible common equity” is defined as “Core net income” divided by average “tangible common equity.” We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders’ equity.

    “Super-core deposits” are defined as total deposits from commercial and consumer customers, with a relationship length of greater than 5 years. We believe the most directly comparable GAAP financial measure is total deposits.

    “Tangible assets” are defined as total assets excluding, as applicable, goodwill and core deposit intangibles. We believe the most directly comparable GAAP financial measure is total assets.

    “Tangible common equity”, and “Tangible book value” are defined as stockholders’ equity excluding, as applicable, minority interests, preferred stock, goodwill and core deposit intangibles. We believe that the most directly comparable GAAP financial measure is total stockholders’ equity.

    "Traditional securities portfolio" is defined as total investment securities excluding PACE assessments. We believe the most directly comparable GAAP financial measure is total investment securities.

    Forward-Looking Statements

    Statements included in this release 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 generally can be identified through the use of forward-looking terminology such as “may,” “will,” “anticipate,” “aspire,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “in the future,” “may” and “intend,” as well as other similar words and expressions of the future. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any or all of which could cause actual results to differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: (i) uncertain conditions in the banking industry and in national, regional and local economies in our core markets, which may have an adverse impact on our business, operations and financial performance; (ii) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (iii) deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors; (iv) changes in our deposits, including an increase in uninsured deposits; (v) unfavorable conditions in the capital markets, which may cause declines in our stock price and the value of our investments; (vi) continued fluctuation of the interest rate environment, including changes in net interest margin or changes that affect the yield curve on investments; (vii) potential deterioration in real estate collateral values; (viii) changes in legislation, regulation, public policies, or administrative practices impacting the banking industry, including increased regulation in the aftermath of recent bank failures; (ix) the outcome of legal or regulatory proceedings that may be instituted against us; (x) our inability to maintain the historical growth rate of the loan portfolio; (xi) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (xii) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on our results, including as a result of compression to net interest margin; (xiii) any matter that would cause us to conclude that there was impairment of any asset, including intangible assets; (xiv) the risk that the preliminary financial information reported herein and our current preliminary analysis will be different when our review is finalized; (xv) increased competition for experienced members of the workforce including executives in the banking industry; (xvi) a failure in or breach of our operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xvii) increased regulatory scrutiny and exposure from the use of “big data” techniques, machine learning, and artificial intelligence; (xviii) a downgrade in our credit rating; (xix) increased political opposition to Environmental, Social and Governance (“ESG”) practices and Diversity, Equity and Inclusion (“DEI”) practices; (xx) physical and transitional risks related to climate change as they impact our business and the businesses that we finance; and (xxi) future repurchase of our shares through our common stock repurchase program. Additional factors which could affect the forward-looking statements can be found in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at https://www.sec.gov/. We disclaim any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.

    Investor Contact:
    Jamie Lillis
    Solebury Strategic Communications
    shareholderrelations@amalgamatedbank.com
    800-895-4172


    Consolidated Statements of Income (unaudited)

     Three Months Ended
     March 31, December 31, March 31,
    ($ in thousands) 2024   2023   2023 
    INTEREST AND DIVIDEND INCOME     
    Loans$        51,952  $        51,551  $        44,806 
    Securities         42,390           42,014           39,512 
    Interest-bearing deposits in banks         2,592           2,419           618 
    Total interest and dividend income         96,934           95,984           84,936 
    INTEREST EXPENSE     
    Deposits         25,891           25,315           13,835 
    Borrowed funds         3,006           3,350           3,821 
    Total interest expense         28,897           28,665           17,656 
    NET INTEREST INCOME         68,037           67,319           67,280 
    Provision for credit losses         1,588           3,756           4,958 
    Net interest income after provision for credit losses         66,449           63,563           62,322 
    NON-INTEREST INCOME     
    Trust Department fees         3,854           3,562           3,929 
    Service charges on deposit accounts         6,136           3,102           2,455 
    Bank-owned life insurance income         609           828           781 
    Losses on sale of securities         (2,774)          (2,340)          (3,086)
    Gains on sale of loans, net         47           2           3 
    Equity method investments income         2,072           3,671           153 
    Other income         285           581           973 
    Total non-interest income         10,229           9,406           5,208 
    NON-INTEREST EXPENSE     
    Compensation and employee benefits         22,273           21,249           22,014 
    Occupancy and depreciation         2,904           3,421           3,399 
    Professional fees         2,376           2,426           2,230 
    Data processing         4,629           4,568           4,549 
    Office maintenance and depreciation         663           700           728 
    Amortization of intangible assets         183           222           222 
    Advertising and promotion         1,219           750           1,587 
    Federal deposit insurance premiums         1,050           1,000           718 
    Other expense         2,855           3,416           3,180 
    Total non-interest expense         38,152           37,752           38,627 
    Income before income taxes         38,526           35,217           28,903 
    Income tax expense         11,277           12,522           7,565 
    Net income$        27,249  $        22,695  $        21,338 
    Earnings per common share - basic$        0.89  $        0.75  $        0.69 
    Earnings per common share - diluted$        0.89  $        0.74  $        0.69 


    Consolidated Statements of Financial Condition

    ($ in thousands)March 31, 2024 December 31, 2023 March 31, 2023
    Assets(unaudited)   (unaudited)
    Cash and due from banks$        3,830  $        2,856  $        5,192 
    Interest-bearing deposits in banks         151,374           87,714           125,705 
    Total cash and cash equivalents         155,204           90,570           130,897 
    Securities:     
    Available for sale, at fair value     
    Traditional securities         1,445,793           1,429,739           1,639,105 
    Property Assessed Clean Energy (“PACE”) assessments         82,258           53,303           — 
              1,528,051           1,483,042           1,639,105 
    Held-to-maturity, at amortized cost:     
    Traditional securities, net of allowance for credit losses of $53, $54, and $58, respectively         616,172           620,232           622,741 
    PACE assessments, net of allowance for credit losses of $657, $667, and $629, respectively         1,057,790           1,076,602           995,766 
              1,673,962           1,696,834           1,618,507 
          
    Loans held for sale         2,137           1,817           5,653 
    Loans receivable, net of deferred loan origination costs         4,423,780           4,411,319           4,198,170 
    Allowance for credit losses         (64,400)          (65,691)          (67,323)
    Loans receivable, net         4,359,380           4,345,628           4,130,847 
          
    Resell agreements         131,242           50,000           15,431 
    Federal Home Loan Bank of New York ("FHLBNY") stock, at cost         4,603           4,389           3,507 
    Accrued interest receivable         53,436           55,484           40,844 
    Premises and equipment, net         7,128           7,807           9,250 
    Bank-owned life insurance         106,137           105,528           105,405 
    Right-of-use lease asset         19,797           21,074           26,516 
    Deferred tax asset, net         49,171           56,603           62,504 
    Goodwill         12,936           12,936           12,936 
    Intangible assets, net         2,034           2,217           2,883 
    Equity method investments         14,801           13,024           8,170 
    Other assets         16,663           25,371           24,001 
    Total assets$        8,136,682  $        7,972,324  $        7,836,456 
    Liabilities     
    Deposits$        7,305,765  $        7,011,988  $        7,041,361 
    Subordinated debt, net         70,570           70,546           73,737 
    Other borrowings         69,135           234,381           140,000 
    Operating leases         27,250           30,646           38,333 
    Other liabilities         47,024           39,399           23,867 
    Total liabilities         7,519,744           7,386,960           7,317,298 
    Stockholders’ equity     
    Common stock, par value $.01 per share         307           307           307 
    Additional paid-in capital         287,198           288,232           287,514 
    Retained earnings         412,190           388,033           330,673 
    Accumulated other comprehensive loss, net of income taxes         (78,872)          (86,004)          (97,317)
    Treasury stock, at cost         (4,018)          (5,337)          (2,152)
    Total Amalgamated Financial Corp. stockholders' equity         616,805           585,231           519,025 
    Noncontrolling interests         133           133           133 
    Total stockholders' equity         616,938           585,364           519,158 
    Total liabilities and stockholders’ equity$        8,136,682  $        7,972,324  $        7,836,456 


    Select Financial Data

     As of and for the
     Three Months Ended
     March 31, December 31, March 31,
    (Shares in thousands) 2024   2023   2023 
    Selected Financial Ratios and Other Data:     
    Earnings per share     
    Basic$        0.89  $        0.75  $        0.69 
    Diluted         0.89           0.74           0.69 
    Core net income (non-GAAP)     
    Basic$        0.84  $        0.73  $        0.75 
    Diluted         0.83           0.72           0.74 
    Book value per common share (excluding minority interest)$        20.22  $        19.23  $        16.94 
    Tangible book value per share (non-GAAP)$        19.73  $        18.74  $        16.42 
    Common shares outstanding, par value $.01 per share(1)         30,510           30,428           30,642 
    Weighted average common shares outstanding, basic         30,476           30,418           30,706 
    Weighted average common shares outstanding, diluted         30,737           30,616           30,939 
          
    (1) 70,000,000 shares authorized; 30,736,141, 30,736,141, and 30,736,141 shares issued for the periods ended March 31, 2024, December 31, 2023, and March 31, 2023 respectively, and 30,510,393, 30,428,359, and 30,642,299 shares outstanding for the periods ended March 31, 2024, December 31, 2023, and March 31, 2023, respectively.


    Select Financial Data

     As of and for the
     Three Months Ended
     March 31, December 31, March 31,
     2024 2023 2023
    Selected Performance Metrics:     
    Return on average assets        1.36%         1.13%         1.11%
    Core return on average assets (non-GAAP)        1.27%         1.10%         1.19%
    Return on average equity        18.24%         16.23%         17.22%
    Core return on average tangible common equity (non-GAAP)        17.59%         16.22%         19.21%
    Average equity to average assets        7.44%         6.95%         6.42%
    Tangible common equity to tangible assets (non-GAAP)        7.41%         7.16%         6.43%
    Loan yield        4.76%         4.68%         4.40%
    Securities yield        5.21%         5.21%         4.73%
    Deposit cost        1.46%         1.43%         0.81%
    Net interest margin        3.49%         3.44%         3.59%
    Efficiency ratio (1)        48.75%         49.20%         53.29%
    Core efficiency ratio (non-GAAP)        50.40%         49.73%         51.64%
          
    Asset Quality Ratios:     
    Nonaccrual loans to total loans        0.75%         0.75%         0.71%
    Nonperforming assets to total assets        0.42%         0.43%         0.49%
    Allowance for credit losses on loans to nonaccrual loans        195.04%         197.97%         224.74%
    Allowance for credit losses on loans to total loans        1.46%         1.49%         1.60%
    Annualized net charge-offs to average loans        0.20%         0.51%         0.25%
          
    Capital Ratios:     
    Tier 1 leverage capital ratio        8.29%         8.07%         7.50%
    Tier 1 risk-based capital ratio        13.68%         12.98%         12.23%
    Total risk-based capital ratio        16.35%         15.64%         15.00%
    Common equity tier 1 capital ratio        13.68%         12.98%         12.23%
          
    (1) Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income


    Loan and PACE Assessments Portfolio Composition

    (In thousands)At March 31, 2024 At December 31, 2023 At March 31, 2023
     Amount % of total Amount % of total Amount % of total
    Commercial portfolio:           
    Commercial and industrial$        1,014,084  22.9% $        1,010,998  22.9% $        923,853  22.0%
    Multifamily         1,175,467  26.6%          1,148,120  26.1%          1,062,826  25.3%
    Commercial real estate         353,598  8.0%          353,432  8.0%          327,477  7.8%
    Construction and land development         23,266  0.5%          23,626  0.5%          37,828  0.9%
    Total commercial portfolio         2,566,415  58.0%          2,536,176  57.5%          2,351,984  56.0%
                
    Retail portfolio:           
                
    Residential real estate lending         1,419,321  32.1%          1,425,596  32.3%          1,390,135  33.1%
    Consumer solar         398,501  9.0%          408,260  9.3%          410,726  9.8%
    Consumer and other         39,543  0.9%          41,287  0.9%          45,325  1.1%
    Total retail portfolio         1,857,365  42.0%          1,875,143  42.5%          1,846,186  44.0%
    Total loans held for investment         4,423,780  100.0%          4,411,319  100.0%          4,198,170  100.0%
                
    Allowance for credit losses         (64,400)            (65,691)            (67,323)  
    Loans receivable, net$        4,359,380    $        4,345,628    $        4,130,847   
                
    PACE assessments:           
    Available for sale, at fair value           
    Residential PACE assessments         82,258  7.2%          53,303  4.7%          —  —%
                
    Held-to-maturity, at amortized cost           
    Commercial PACE assessments         256,661  22.5%          258,306  22.8%          262,398  26.3%
    Residential PACE assessments         801,786  70.3%          818,963  72.5%          733,997  73.7%
              1,058,447  92.8%          1,077,269  95.3%          996,395  100.0%
                
    Total PACE assessments         1,140,705  100.0%          1,130,572  100.0%          996,395  100.0%
                
    Allowance for credit losses         (657)            (667)            (629)  
    Total PACE assessments, net$        1,140,048    $        1,129,905    $        995,766   
                
                
    Loans receivable, net and total PACE assessments, net as a % of Deposits 75.3%    78.1%    72.8%  
    Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs 77.0%    80.9%    79.5%  


    Net Interest Income Analysis

     Three Months Ended
     March 31, 2024 December 31, 2023 March 31, 2023
    (In thousands)Average
    Balance    		Income / ExpenseYield /
    Rate    		 Average
    Balance    		Income / ExpenseYield /
    Rate    		 Average
    Balance    		Income / ExpenseYield /
    Rate
                      
    Interest-earning assets:                 
    Interest-bearing deposits in banks$        205,369  $        2,592          5.08% $        190,994  $        2,419          5.02% $        90,962  $        618          2.76%
    Securities(1)         3,170,356           41,064          5.21%          3,175,784           41,741          5.21%          3,361,750           39,193          4.73%
    Resell agreements         79,011           1,326          6.75%          16,848           273          6.43%          18,644           319          6.94%
    Loans receivable, net (2)         4,390,489           51,952          4.76%          4,370,946           51,551          4.68%          4,129,460           44,806          4.40%
    Total interest-earning assets         7,845,225           96,934          4.97%          7,754,572           95,984          4.91%          7,600,816           84,936          4.53%
    Non-interest-earning assets:                 
    Cash and due from banks         5,068               5,357               4,015     
    Other assets         226,270               220,580               217,020     
    Total assets$        8,076,563      $        7,980,509      $        7,821,851     
                      
    Interest-bearing liabilities:                 
    Savings, NOW and money market deposits$        3,591,551  $        21,872          2.45% $        3,629,658  $        19,808          2.17% $        3,091,228  $        9,555          1.25%
    Time deposits         188,045           1,576          3.37%          183,225           1,423          3.08%          149,814           297          0.80%
    Brokered CDs         190,240           2,443          5.16%          309,378           4,084          5.24%          367,684           3,983          4.39%
    Total interest-bearing deposits         3,969,836           25,891          2.62%          4,122,261           25,315          2.44%         3,608,726           13,835          1.55%
    Other borrowings         288,093           3,006          4.20%          304,869           3,350          4.36%          347,878           3,821          4.45%
    Total interest-bearing liabilities         4,257,929           28,897          2.73%          4,427,130           28,665          2.57%          3,956,604           17,656          1.81%
    Non-interest-bearing liabilities:                 
    Demand and transaction deposits         3,138,238               2,921,961               3,286,964     
    Other liabilities         79,637               76,588               75,798     
    Total liabilities         7,475,804               7,425,679               7,319,366     
    Stockholders' equity         600,759               554,830               502,485     
    Total liabilities and stockholders' equity$        8,076,563      $        7,980,509      $        7,821,851     
                      
    Net interest income / interest rate spread  $        68,037          2.24%   $        67,319          2.34%   $        67,280          2.72%
    Net interest-earning assets / net interest margin$        3,587,296            3.49% $        3,327,442            3.44% $        3,644,212            3.59%
                      
    Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs$        6,917,834            1.36% $        6,734,844            1.25% $        6,528,006            0.61%
    Total deposits / total cost of deposits$        7,108,074            1.46% $        7,044,222            1.43% $        6,895,690            0.81%
    Total funding / total cost of funds$        7,396,167            1.57% $        7,349,091            1.55% $        7,243,568            0.99%
     
    (1) Includes FHLBNY stock in the average balance, and dividend income on FHLBNY stock in interest income.
    (2) Includes prepayment penalty interest income in 1Q2024, 4Q2023, and 1Q2023 of $18, $167, and $0, respectively (in thousands).


    Deposit Portfolio Composition

     Three Months Ended
    (In thousands)March 31, 2024 December 31, 2023 March 31, 2023
     Ending Balance Average Balance Ending Balance Average Balance Ending Balance Average Balance
    Non-interest-bearing demand deposit accounts$        3,182,047  $        3,138,238  $        2,940,398  $        2,921,961  $        3,015,558  $        3,286,964 
    NOW accounts         200,900           197,659           200,382           191,889           199,518           196,499 
    Money market deposit accounts         3,222,271           3,051,670           3,100,681           3,090,805           2,702,464           2,514,835 
    Savings accounts         341,054           342,222           340,860           346,964           371,240           379,894 
    Time deposits         197,265           188,045           187,457           183,225           157,697           149,814 
    Brokered CDs         162,228           190,240           242,210           309,378           594,884           367,684 
    Total deposits$        7,305,765  $        7,108,074  $        7,011,988  $        7,044,222  $        7,041,361  $        6,895,690 
                
    Total deposits excluding Brokered CDs$        7,143,537  $        6,917,834  $        6,769,778  $        6,734,844  $        6,446,477  $        6,528,006 


     Three Months Ended
     March 31, 2024 December 31, 2023 March 31, 2023
    (In thousands)Average
    Rate Paid(1)    		 Cost of Funds Average
    Rate Paid(1)    		 Cost of Funds Average
    Rate Paid(1)    		 Cost of Funds
                
    Non-interest bearing demand deposit accounts        0.00%         0.00%         0.00%         0.00%         0.00%         0.00%
    NOW accounts        1.05%         1.03%         0.99%         1.00%         0.87%         0.76%
    Money market deposit accounts        2.96%         2.67%         2.89%         2.35%         1.32%         1.36%
    Savings accounts        1.34%         1.29%         1.20%         1.15%         0.95%         0.78%
    Time deposits        3.44%         3.37%         3.01%         3.08%         1.25%         0.80%
    Brokered CDs        4.99%         5.16%         5.09%         5.24%         4.52%         4.37%
    Total deposits        1.60%         1.46%         1.62%         1.43%         0.99%         0.81%
                
    Interest-bearing deposits excluding Brokered CDs        2.75%         2.50%         2.65%         2.21%         1.25%         1.23%
                      
    (1) Average rate paid is calculated as the weighted average of spot rates on deposit accounts as of March 31, 2024.


    Asset Quality

    (In thousands)March 31, 2024 December 31, 2023 March 31, 2023
    Loans 90 days past due and accruing$        —  $        —  $        1,299 
    Nonaccrual loans held for sale         989           989           5,653 
    Nonaccrual loans - Commercial         24,228           23,189           25,779 
    Nonaccrual loans - Retail         8,791           9,994           4,177 
    Nonaccrual securities         31           31           1,835 
    Total nonperforming assets$        34,039  $        34,203  $        38,743 
          
    Nonaccrual loans:     
    Commercial and industrial$        8,750  $        7,533  $        9,521 
    Multifamily         —           —           2,710 
    Commercial real estate         4,354           4,490           4,745 
    Construction and land development         11,124           11,166           8,803 
    Total commercial portfolio         24,228           23,189           25,779 
          
    Residential real estate lending         4,763           7,218           2,016 
    Consumer solar         3,852           2,673           2,021 
    Consumer and other         176           103           140 
    Total retail portfolio         8,791           9,994           4,177 
    Total nonaccrual loans$        33,019  $        33,183  $        29,956 
          
    Nonaccrual loans to total loans         0.75%          0.75%          0.71%
    Nonperforming assets to total assets         0.42%          0.43%          0.49%
    Allowance for credit losses on loans to nonaccrual loans         195.04%          197.97%          224.74%
    Allowance for credit losses on loans to total loans         1.46%          1.49%          1.60%
    Annualized net charge-offs (recoveries) to average loans         0.20%          0.51%          0.25%


    Credit Quality

     March 31, 2024 December 31, 2023 March 31, 2023
    ($ in thousands)     
    Criticized and classified loans     
    Commercial and industrial$        62,242  $        69,843  $        35,823 
    Multifamily         10,274           10,306           18,710 
    Commercial real estate         8,475           8,637           35,121 
    Construction and land development         11,124           11,166           16,426 
    Residential real estate lending         4,763           7,218           2,016 
    Consumer solar         3,785           2,673           2,021 
    Consumer and other         243           103           140 
    Total loans$        100,906  $        109,946  $        110,257 


    Criticized and classified loans to total loans     
    Commercial and industrial        1.41%         1.58%         0.85%
    Multifamily        0.23%         0.23%         0.45%
    Commercial real estate        0.19%         0.20%         0.84%
    Construction and land development        0.25%         0.25%         0.39%
    Residential real estate lending        0.11%         0.16%         0.05%
    Consumer solar        0.09%         0.06%         0.05%
    Consumer and other        0.01%         0.00%         0.00%
    Total loans        2.29%         2.48%         2.63%


     March 31, 2024 December 31, 2023 March 31, 2023
     Annualized net charge-offs to average loans ACL to total portfolio balance Annualized net charge-offs to average loans ACL to total portfolio balance Annualized net charge-offs to average loans ACL to total portfolio balance
    Commercial and industrial        0.16 %         1.58 %         — %         1.81 %         — %         1.78 %
    Multifamily        — %         0.38 %         — %         0.19 %         0.44 %         0.66 %
    Commercial real estate        — %         0.40 %         — %         0.36 %         — %         0.75 %
    Construction and land development        — %         3.67 %         71.82 %         0.10 %         — %         0.94 %
    Residential real estate lending— % 0.87 % (0.04)% 0.93 % (0.05)% 1.07 %
    Consumer solar        1.67 %         6.72 %         0.99 %         6.85 %         1.54 %         6.81 %
    Consumer and other        0.86 %         6.36 %         0.05 %         6.48 %         1.22 %         5.90 %
    Total loans        0.20 %         1.46 %         0.51 %         1.49 %         0.25 %         1.60 %


    Reconciliation of GAAP to Non-GAAP Financial Measures
    The information provided below presents a reconciliation of each of our non-GAAP financial measures to the most directly comparable GAAP financial measure.

     As of and for the
     Three Months Ended
    (in thousands)March 31, 2024 December 31, 2023 March 31, 2023
    Core operating revenue     
    Net Interest income (GAAP)$        68,037  $        67,319  $        67,280 
    Non-interest income         10,229           9,406           5,208 
    Add: Securities loss         2,774           2,340           3,086 
    Less: ICS One-Way Sell Fee Income(1)         (2,903)          —           — 
    Less: Subdebt repurchase gain(2)         —           —           (780)
    Less: Tax credits on solar investments(3)         (1,808)          (3,251)          — 
    Core operating revenue (non-GAAP)         76,329           75,814           74,794 
          
    Core non-interest expense     
    Non-interest expense (GAAP)$        38,152  $        37,752  $        38,627 
    Add: Gain on settlement of lease termination(4)         499           —           — 
    Less: Severance costs(5)         (184)          (47)          — 
    Core non-interest expense (non-GAAP)         38,467           37,705           38,627 
          
    Core net income     
    Net Income (GAAP)$        27,249  $        22,695  $        21,338 
    Add: Securities loss         2,774           2,340           3,086 
    Less: ICS One-Way Sell Fee Income(1)         (2,903)          —           — 
    Less: Gain on settlement of lease termination(4)         (499)          —           — 
    Less: Subdebt repurchase gain(2)         —           —           (780)
    Add: Severance costs(5)         184           47           — 
    Less: Tax credits on solar investments(3)         (1,808)          (3,251)          — 
    Less: Tax on notable items         607           227           (604)
    Core net income (non-GAAP)         25,604           22,058           23,040 
          
    Tangible common equity     
    Stockholders' equity (GAAP)$        616,938  $        585,364  $        519,158 
    Less: Minority interest         (133)          (133)          (133)
    Less: Goodwill         (12,936)          (12,936)          (12,936)
    Less: Core deposit intangible         (2,034)          (2,217)          (2,883)
    Tangible common equity (non-GAAP)         601,835           570,078           503,206 
          
    Average tangible common equity     
    Average stockholders' equity (GAAP)$        600,759  $        554,830  $        502,485 
    Less: Minority interest         (133)          (133)          (133)
    Less: Goodwill         (12,936)          (12,936)          (12,936)
    Less: Core deposit intangible         (2,123)          (2,325)          (2,991)
    Average tangible common equity (non-GAAP)         585,567           539,436           486,425 
          
    Core return on average assets     
    Denominator: Total average assets (GAAP)$        8,076,563  $        7,980,509  $        7,821,851 
    Core return on average assets (non-GAAP)         1.28%          1.10%          1.19%
          
    Core return on average tangible common equity     
    Denominator: Average tangible common equity$        585,567  $        539,436  $        486,425 
    Core return on average tangible common equity (non-GAAP)         17.59%          16.22%          19.21%
          
    Core efficiency ratio     
    Numerator: Core non-interest expense (non-GAAP)$        38,467  $        37,705  $        38,627 
    Core efficiency ratio (non-GAAP)         50.40%          49.73%          51.64%
     
    (1) Included in service charges on deposit accounts in the Consolidated Statements of Income
    (2) Included in other income in the Consolidated Statements of Income
    (3) Included in equity method investments income in the Consolidated Statements of Income
    (4) Included in occupancy and depreciation in the Consolidated Statements of Income
    (5) Included in compensation and employee benefits in the Consolidated Statements of Income

    Primary Logo

شارك على،