AMAL - Earnings call 3 2023 | Amalgamated Financial Corp.

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Operator

Good morning, ladies and gentlemen, and welcome to the Amalgamated Financial Corporation Third Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.I would now like to turn the call over to Mr. Jason Darby, Chief Financial Officer. Please go ahead, sir.

Jason Darby

Thank you, operator, and good morning, everyone. in quarter participation earnings your appreciate our XXXX third call. We call Brown, today a and this an on extended is website me time. of our Investors telephonic be section the Priscilla of period reminder, With for a Sims President our available Officer.As Chief replay of will Executive

We as can or website.Let measure to certain over caution of our forward-looking complement such of expectations forward-looking that be begin, U.S. results turn on found these we let release results within as remind everyone as a factors not by such our Additionally, to isolation filed results well most prepared is now XX-K that our presentation additional of implied Securities well of discuss today's in available we reconciliation refer as call, we are X, GAAP indicated website.Before differ today's a substitute in with GAAP. during any certain indicated statements. or should the in non-GAAP useful the slide from the constitute of X to Investors should from will those Priscilla. The our believe on for A of Litigation our for risk in also accordance call could XXXX information investors statements evaluating comparable the of differ that measures may measures, the statements.Additionally, be meaning as or which me materially considered performance. Reform contain cause non-GAAP this to this call March discussion actual earnings statements XXXX. a actual list information to deck the on by that Investors deck or XXXX, earnings section Private implied me Slide may our Act

Priscilla Sims Brown

business our that social to clearly Thank I'm a and to financially well while responsibility business demonstrate can good the of you, results in discuss be here morning, they good quarter world. as also third doing excited Jason, today everyone. do as the

earlier news conscious market, the in.With are for and strategy prepare common the interest environment hawkish settling into from While to the we're we balance by centered the rate year next reality we this longer are equity events the balance for optionality continuing Fed higher and second of a dominating tangible bond year.As ratio. a growth no strategy longer banking we believe maintain the mutual the in a half to have stance of increasing of a position our mid-March, the operating slowly economic in to solid on our reminder, quickly a building capital growth pivoted modified sheet, we sheet headlines,

minimum results, target out to basis playing we end, X.XX% us XX common of march an leverage And March balance since X.X% towards our our leverage ourselves has better to neutral have against points Now important and quarter's our well quarter of increased Since to ratio second sheet ratio X% TCE full improved our we been is tangible the XXXX. very and is by basis we perhaps as points than expected. target as XX to has ratio X.XX% even modestly X.X%.The measuring strategy the steadily target. equity we

portfolio, we closely loan continue from augmented our securities of more runoff predominantly at our select sheet, by Looking balance to fund sales. growth, security

assets grow. loans have health securities continued reduce will XXX.X traditional In portfolio our reduced we by the balance naturally by from as with March. X% or since X%, of quarter, to loans the nearly those and positions mix portfolio million million unrealized or rates.During the and to $XXX.X sheet market at nearly the change amortization replace securities assets benefit we As will loans, loss tandem,

billion. $XXX net X.X% receivable During loans million or $X.X to quarter, increased the

which I brokered more billion CDs, or class, driven mainly to the was bit.Shifting fully deposits. growth deposits, just during a in the million Importantly, will our X.X% $XXX.X to quarter. excluding industrial discuss asset increased by $X.X and Total commercial

Importantly, political segment, not-for-profit highlights our includes experienced That and deposit organizations. we approximately which XX the of outside customer of million the diversity sustainability our inflows deposit new from franchise. segments

segment deposit the kicks high bank, political political election deposit the now campaign is year and it's million Our $XXX.X for contributed a important tight this differentiator growth liquidity as the only a with gear presidential in into particularly away. our environment.During the quarter, cycle of

trajectory next our and the inflows to which growth continues to shape, deposit becoming important political provides growth take forward, predictable. to the balance we Looking continue is in quarters of into profitability further sheet visibility year, expect clear for our our well ahead.As more

last net better than as our margin million each note X.XX%, important funds.As was to our quarter, second in provided margin are inflection points we the basis income mostly with in is increased we reaching loans, expansion are $XX.X our quarter. our XX PACE was is loan discussed cost most and results. the of is XX believe assets. an highlight midst achieving to lower-yielding point our When excited we we interest and It's about securities yields sheet X.XX%, our in the rise to XX as multifamily to of the how interest residential an franchise, Our range I our that in balance guidance roll net XXXX. months and paired they Perhaps with replaced prospects are off I'm important margin and deposit turning higher-yielding older over loans loans our for with over what the next offsetting

that way to and that our with this drives also to our directly we're a in earnings having drive business passionate to do We working growth. and and change are success.I profitability model that are about said and customers employees mission aligned our often use have want both our voice we

classes took and are economic projects an in lending sustainable loans bankers through X New of in for that next XXXX. we net urgency a at estimated U.S. that during results Targets grow the sheet York on achieve is and be the huge that our by even our order opportunity with critical challenging. our significant value the as be money we're but emission our strategy, goal need cycles renewable to validated highlighted which the the and of the the and business market was of which a needed getting positions a to combat growing of Client zero current win experienced into water will Climate finally prudently us. to well Importantly, Ambition for issue.Additionally, trillion the up shift participate importance, renewables, speaks us Week, just opportunities change X and full clearly our the the the to emissions capital, of change Secretary's zero-based ahead. additional City in are to clarity climate the of the mix more by is we're UN the early part to deeply in General Assembly a balance investment segments the Alliance, in will The as innings environment given given Bank XX franchise sector. continued spoke quarterly Inflation Summit, demonstrate part Act the believe the Sustainability provide climate which partnership of and having to fact the in honored only UN own of are growth. for address have we market, asset a only Target model, initiative.Wrapping have believe This Science well started visibility over UN combating sophistication asset in rapidly with targets franchise.We my been years by banks long our parent I we earlier, differentiated to proves a is the of September.Amalgamated Zero which we of comments, opportunity, Reduction industry-leading which strength position, of in to Based underwrite the Efforts to display have if infrastructure momentum in $X sustainable expanding Banking runway of be the General importance was to suited lending place sustainable We years our of the and

socially long provide creation.Let continued earnings We call over results. now to me the ahead few value are customers our responsible communities our quarter Most of our we and serve. for we a results runway and the to Jason growth and turn importantly, for a have financial bank America's deliver shareholders, we third

Jason Darby

million or tax or the is statement the at on $X.XX $X.X third million the current XXXX. was by for impact million excluding $X.X income credits losses per Priscilla. third the no per in for or depreciation million in $X.XX was was provision Net $X Because were compared Core associated $XX.X the quarter accelerated quarter to diluted share were and of to a XXXX. quarter the the XXXX Deposits for million million per a investments, for metrics, quarter exclusions increase equity third of $XX.X a investments sales share accounting $X.X of offset third of losses, in an of driven we of net million billion, securities our of tax expense.Beginning an measure, these by decrease a income, performance. $XX net available-for-sale of September XXXX, diluted $X.X Slide diluted of increase or increase $XX.X decrease with $X.XX Thank the on share for in impact timing or second in and non-GAAP million a credit XX, quarter for to of you, tax and excluding interest way The of income increase evaluate the second XXXX. XXXX to there X. Slide quarter equity increase net XXXX XXXX.Turning second solar X, the volatility solar $X to helpful income primarily per for income noninterest diluted expense, the for the quarter tax investments, compared $X.XX $XX.X of a share million related million historical of $X.X million believe in

deposits, total million on, touched $X.X increased to CDs, excluding Priscilla As by billion. brokered $XXX.X

of of XXXX, points, increase continue deposits to previous ended brokered of ending up CDs, deposits cost Excluding for the cost we was including point quarter average the deposits basis as in quarter XX from from a represent quarter. basis points the contributing total of an the third XX, to XX customer quarter XX% XXX to protect XX% CDs, noninterest-bearing deposits brokered basis average competitively build deposits, our and previous base.Our of our and basis points XXXX, deposits XXX price of approximately September

to CDs election carrying year We have provide late in in since our midterm been funding for XXXX. the outflows early brokered deposit

fourth we this our of quarter.Moving of cost to As to funds. should higher in the now cost political super-core totaled process have deposit maturities CD quarters, $X.X continue our over impact anticipate few re-accumulate, X, We billion. the funding the on base $XXX are high-quality Slide which deposits next of positive our replacing million a approximately during brokerage

deposit Our impact super-core XXXX. end, into $X.X base At of the or an billion uniquely uninsured deposits, quarter during second customer insight segments. $X.X important or XX% improvement billion from total deposits our XX% displays were of total quarter

of capacity billion uninsured XX% we approximately borrowing with $X.X capacity of unpledged liquidity. $X.X immediate X-day quarter.Consistent quarters, were from deposits to resulting significant deposits in approximately maintained coverage of prior the from X-day million of and XX% have $X.X securities, billion liquidity in Excluding immediate billion, $XXX super-core remaining cash improving and with of prior liquidity total uninsured deposits XXX% total with XXX% to

look $XXX.X held balance. as consistently deposits securities value and political at Our represented with million million strategic primarily end XX XX, securities XXXX, have position increase a loss $XX.X of million the X% our $XX.X of million inflows.Jumping unrealized Deposits XX. on past further that of have in assessment closer net our to was basis. our $XXX.X portfolio politically securities consistent a earnings ahead traditional quarter, September deposits, uninsured we during or a ratio quarter.Taking deposit of Slides quarter, stream.Our book several linked-quarter the PACE XX% over the and paydowns, of the the decreased XX% were covers own a protect X. of million. Through the decline had million Slide we X.X% our XXth, a million our in securities of reduced result active traditional securities Floating portfolio of insured from on an growth $XX.X customers as of The prior rate October $XXX.X to traditional as $XXX.X by portfolio while the prior sales quarter quarters in total million was available-for-sale in $XX.X liquidity

in of This September at net increase Importantly, and loans was driven million increase multifamily offset $X.X receivable $XXX commercial portfolio our compared duration decrease reflecting of in June loan of a credit loan only million we XXXX, $XX.X in to costs quarter, million the of XX. to Total industrial upgrades, a our is a our investment average Slide compared due loans and years, million XX, AFS increase XXXX. exposure prior discussed and was Of been attributed loan approximately $X.X third improving loans by with all loan one commercial has increase payoff and X in including billion, in of net we our quarter.On million points $XX.X quarter $XX calls, yield we real multifamily effective an costs. an been criticized XX, the rates million have had increased mainly quite loans, to grade credit special The upgrades decrease estate $XX or the improved $XXX real million X.XX% loans of to to across million as by The quarter primarily in X.X the a had fees deferred total of of X.XX% office-only end, we increase $X.X conservative residential XX, commercial largely and loan interest during on on decisions.Turning were quarter million X.X% a $X portfolio. a to of continue $X.X in real Slide mention of loans.During is now for the from decrease a as second quarter. estate in liabilities, million of our XXXX, deposit are the portfolio the loans, focus commercial pass credits new and the LTV and was estate while. payoffs loan classified multifamily X credits, quality of upgrades full average X that At grade portfolio a was The returned in XXXX. X.XX% during on yield derisking quarter.As pass for loans yield an for portfolio we to generated decrease of XX%. the interest-bearing balances X.XX% basis the primarily margin second

in loans provided the decrease placed was loan million quarter million That a decrease to a decrease cost sales in expected third mainly offset driven quarter a of million to decrease million quarter's increase quarter $X.X on to million core measure, status move by a assets October tax range million or to quarter of in $XX and $X.X in loan the million $X.X million of a investments, an was Slide set to Nonperforming line million, was X.XX% XX, we tax held for was of September $X.X point in expense expense, was by the sale.Our noninterest $X.X compared quarter.Moving the of see $X.X consumer nonaccrual of with loans previous on noninterest funding an primarily XXXX. quarters $X.X XXXX. totaled Importantly, to increase and $X.X sold measure impact in equity as our The recognized $X.X are loan XX%, in third on of core by the primarily related $XX.X we lower-cost expense in million as is department in million This fees XX, XXXX. income, sale a and XXXX net $XX subsequently second was Page of data offset a non-GAAP NIM with fees, The the as $X.X by linked-quarter trust X.XX% from attributed and to higher partially was credit total and at criticized brokerage mitigate of basis. processing million pressures on on be sale assets the the focus in in quality.On XX. multifamily of call XX, to a charge-off last combined to a construction deposit due noninterest revenue a million in or or yields a million funding inflection beginning nonaccrual CDs assets inflows nonperforming linked-quarter improving residential replaced term million decreased a Page the of ahead.On $X.X assets $XX.X for increase $XX.X solar for excluding for the non-GAAP on quarter. This third second period-end basis. held professional XXXX million compared

to June During the XX, for allowance increased allowance the XX, in second the third $X.X equity of a ratio common respectively million of Provision on due to provision for $XX.X our the and and quarter compared Slide to $XX was XXXX. in total the quarter, exposure for core solar consumer equity our of $X.X The quarter common million provision of the share to loans unfunded XXXX. of in third the loans repurchased X remaining quarter related $X.X $X.X of $XX.X basis million credit for loans XXXX The XX.X% loans.Continuing return and million We points million program. second loans losses at to capacity stock $XX.X on XXXX. X.XX%, for X.XX% on September core to of from repurchase million were XX, million tangible million on million under decrease average a and decrease from and is during credit XXXX, industrial in a have off-balance quarter commercial in at XXXX. totaled decrease losses quarter the the the largely XX.X% on third risk decrease of sheet return average $X.X

environment and of noted, the quarterly of volatility. share.As sector based the in per to banking previously on of position capital the our the wake economic our declared dividend have $X.XX we we build continue Additionally, state current regular

to driven book in primarily linked-quarter, tangible ratio our leverage as shown change the as compared and to XX, capital a XX basis common related Slide by Tier value. X shows improved result strong tangible equity the points and a XX reconciliation our quarterly earnings.Slide X.XX% As of on

the point XXXX XX Board more kept likely one year. not As and quarter steady for than Federal Reserve basis rate expected, the through it this is increase of third rate more

million offset driven value quarter, XXXX, increase of affected the in representing $X.XX XX%. other interest expect dividends in at tangible per quarter, to $XX.XX rates stock growth the common as repurchases our $X.X tax $X.X million the the portfolio.Tangible to by targeted quarter to per of a by reductions for non-GAAP September we $XX.X forward, and a $XX key of paid the with interest greater XXXX. prior and compared to loss share second higher improved comprehensive $X.X XX, was share, mark-to-market million Looking rate income available-for-sale book of longer per net outstanding have occur in we us on book second million of increase during share, XXXX.Our to an is value for by a annual half our due for securities accumulated as share remain potential metric than rate measure, any $XX.XX The per of

of income, metric key focus continue revenue is profile earnings per to drive to more grow core interest share our our we meaningful net noninterest for Another income. as ability us and also

revenue the share diluted third quarter. core for per Our $X.XX was

for minimum We and tightened that quarter back have the we note uncertainty high a forward, the assets second tangible remain quarter economic of migration previous million solar, interest that estimate projections Core at set modestly increase full the in for in to we net decrease of have excluding forward income the to $XXX basis range $X.X an pleased which X% we and range with equity and $XXX quarter.We and the Slide in to difficult. have comparison pre-provision year end million the our been X.XX% tangible target rate of XX never a We and approximate said, degree curve our remind effect investors point pre-provision for also the of million, we $XXX net target.Turning XXXX.Going as considers income interest banking below income of common from interest-bearing equity rates. expanded follows: XXXX pretax accounts remainder to of sector common our million pretax interest of tangible the higher our XX. to of guidance, in interest X.XX% publicly core parallel million annual earnings, makes XXXX of for net That that $XXX

we We an pleased million conducted to remains on unchanged the balance focus limiting credit XXXX.Wrapping Our the we taking in the of expect do changing interest balance capital, steps point our equally We're report not are net our has we prepare fourth between stable the progress building net $XX change a position, significant capital sheet and independent up, and to reached income the so million our of for interest year $XX far. fourth think margin in sheet options and we during our Correspondingly, are outlook our rating assets anticipate prudent and next annual also to growth mix third growing quarter leverage margin range inflection the remains with expenses. cautiously managing our that by during surveillance happy with quarter. bank's quarter.

ask grow open that, deposit year drive metrics.And have a distinct like with up in the with key ability lending will Operator? the our combined improved over next profitability model I'd help to questions. impact for per-share any impact to Our operator competitive on significant business a to the franchise our positive will and our market, line

Operator

Brown questions, Priscilla in the light opening additional of a Before evening's CEO make would last like for few to Amalgamated line comments Sims events.

Priscilla Sims Brown

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Operator

[Operator Instructions] Piper the of Peter Sandler. comes [ ] line with first Hale question Our from

Unknown Analyst

mentioned today. I books what Alex are coming some Just loan Twerdahl at? the higher-yielding loans. rolling lower-yielding book Could you're adding going you know new loan the you color in loans yields off us give for are on some and on

specific on helpful? yields the maybe and yields loan that new be segments, on would color any So

Jason Darby

yields Happy bring Sure. been question. Yields -- on strong. take have that to

And segments. around the bit say, I to commercial X% of a closer quarter, and the bit portfolio the estate. X% on has X.X% probably in the more rates little blended, range a was business the Obviously, real that on bring quite We X.X%. the average regular our multifamily between C&I across would saw the of movement cases. then For about to were sort certain on higher,

increased you seeing PACE strong we're pushing quarter, the during subsequent in originated we're of with We're as even mid-X%s noticed were close to again. the seeing rates our the The assets in being X% yields PACE pretty low probably assets up So quarter.And there. range. the the rates seeing now the

around right probably are multifamilies Our X%.

assets a while decent the So our credit turning into fairly issues and point and credit fairly it pointing ties to finding been rates.So also we moment in really and we're we're opportunities lendable that strong seeing you the are we really market raised that metrics on any well point. at lower-yielding the are not for meeting substantial having little think operate are we've really that the at segments been about rate for over that's this something a opportunities lift

Unknown Analyst

maybe like core expenses I switch to in $XX we expenses want be stability just found think repeatable? guys last know million there I to Or quarter and and how in it XXXX? quarter the expenses. seems won't that Is some this any believe you to about into that around going like range. XQ should reason entering

Jason Darby

Yes.

in So the entire for XQ, I think, year. our disciplined can fairly look very similar been to XQ. approach We've

into events really on a building management. the capital-constraining mode of with mid-March possible kind moved being as and prudent and capital expense As know, after focusing we of you as

quarters, So reasonable said the the of to over I we've of baseline QX. that assume for kind $XX million, $XX.X million past think, couple is

the where be saying a surprise, if to quarter it Now X usually when is that's I'll going is comes there quarter caveat that by up.

think really upcoming for really But I for year. forward of think our Otherwise, we don't mind.When So we're be not XXXX, and about I entire when opportunities do do major I'm us our aware a going we I know will model and that guidance bear do a be earnings today, improvements. roll think there'll to of I perspective I'd just optimistic we're that the of that have cautiously number Ordinarily, kind business. various you. and forecast we anything or QX kind making think our but be for plan to make we you material. investments in letting in

stay rate that kind we even be run And a year, think in the million we'll core so would what to share not for to said band $XX next going outer be XXXX that in were quarterly go try really similarly XXXX ourselves we'll disciplined really at year we to and ratio. would in $XX.X go year.That always have the quarter. said, past I And to million within we more this was that would efficiency We keep that. a plan or of banded the and XX% our and not be going about

Operator

comes Chris with line O'Connell next the Our from question KBW. of

Christopher O'Connell

election to some be deposits, great provide as hoping QX. you to the provide are? out chugging could cycle was was think top could to next And willing range you'd I the wondering this of early roughly growth cost be where get balance to seems top if where along political new at coming quarter was the color, it on a obviously, and the of they any of the deposits I sheet in political color if also you So blended year? then

Jason Darby

Chris. Happy take to again. talk Great to that. you to Sure,

So for political us. have trended the deposits nicely

I very with the we've pleased been think far. results so very,

the I lot in that reasonably of X being it able predict the quarter look And it's to out. been has quarter, playing and historical expertise what nice think my looks looks to these current XXXX if nature see like. we deposits a that built like I up at

difficult this where always that as do those So it forward the different. time. historical good how down when in of one you and it's wouldn't excess could And deposit to cycles expect at us there's were pretty to about to a trends I be those likely feel are trends think thing I particular benchmark look because trends we the what quarters for to But say some look. good about top balances out.It's will repeatable going you nail think historical

a to if good it that, during continuing than point think of environment was we're to terms neutral certainly positive for from have last seen the think different a towards that the a or Chris.In I we a of rates, cycle, I view would be even us lot pretty the because that liquidity interest-bearing. is trend

rate-dependent While ratio phase, balances talked in if that to That this we these And see those trend last numbers year.The will project XX-XX a deposits hold, but downward, political we will migrate generally are X/X a point. it XX-XX accumulation become next not I as for the the even you on later quarters. that the we're little could close upcoming for go could towards staged because move seeing we were reasonably deposits and to cycle, the you will of into those the how kind usage, or DDA quarter deposit the and noninterest-bearing. less bit has of at part probably ratio now shifted we in that right for to be think more of that's early continue very deposits probably what transactional

Christopher O'Connell

think, shifting then the revenue in side. know market side. little deck there's And the I the for that a striving guys just AUC down noted, factors that bit. were and and quality. And AUM you But to net down I Trust were they fee on

Just hoping around you could kind of provide exactly some entails? what color that

Priscilla Sims Brown

trust looked looking lending long-term the way on sense to quality about we traded out a credit the lending not are to on what as is and to think in the better a in the more you've better obviously, Certainly, are favorable allowing business, it's of into similar customer to going we've attrition where in book, the the we activity issue, trust the bank way less quality to that at that natural going and long-term are One similar there's relationships happen. the is side, seen on relationships.So in but bank for we that long-term. favorable that that

Now then customers. appropriately the a the not the occur. should good having natural passed activity. passing year new or some to recall, attrition none follow-on we've in We in overall, of This some then specific that of to on the rightsizing the to of earlier started is good to where results talked about allowed quarter. long-term this for where And the we relationship be you'll costs the or that bank fees, is is that on

reflected the You quarter. saw in that

Christopher O'Connell

we a particular, just far were expect it as in that payoffs. I loans sold criticized on provide? in par, should of credit reversal seems was trends that there any quarter the the couple net fairly detail ago, then substantial And million as is getting of that classified large $X.X then And multifamily upgrades XQ? in you and a and number in of a at the XQ, could mean, like charge-off

Jason Darby

charge-off take So I'll part that the multifamily of Chris. first,

is was that really it not see about an factors during to things? about, credit for nonaccrual that having and million into were substantial improvement good able just we our credit that's other that for some to already have those eye million time. a a financial nonaccrual not more a the probably we're would we're more speaking was that less close than updated of side, that of $X.X similar don't of don't a albeit day improvement It's the very numbers But triggers types kept numbers for our I end when $X.X the improvement And see the will on keeping there where the on we couple loans related credit right information instance. you But the that probably on be could follow me, quarter. range. that. that some good now outcome that similar in an assets, could got we resolution that.And keeping an I a traded don't charge-off that for some on the of we the would improvement talked nonperforming eye from think aside that I assets. but mention quite to be substandard, one to your think timing quality for on metric.So equal REO and special the so There's was quality a loans favorable at and of rating. a been our occurred at things move we've times one the had of out into Really, one all where position, view credit that I've waiting excuse I substandard -- our -- something eye question overall there be that some where in X credit though, estimate we're bank. our could loans those as as just see path, that to

some and those sooner same been have that not a upgraded past because trend prudent asset we the in upgrade at could that's we to something type Perhaps those. great on criticized just time, to waiting of going trail a be in smoother think I were of going really line.But think very for the we're bank you it's would seen situation. have

to got the we us felt are be on upgradable these we the we these quarters. empirical not surprises decision past do the for information substantial once hopefully, So to upgrades. quite reasonably able metrics, in would that to But and communicate made we're that a while

Christopher O'Connell

to targets? some while towards know was moving out way you towards along this moving are capital And to is repurchases those you then eke you QX and the targets can your I PACE for continue in Do still that able that on think guys quarter. something do

Jason Darby

reasonably I do, yes.

assumes loss assumes think like everything And allocation that into another fair It assets targets for this on losses in buyback. constant And assumes of level projection we it million our I'm a capital took securities. sure put we I capital undervalued a also securities $X.X-or-so a saw dividend. you reasonable quarter.

we've think month of little with brought our really the and we deposit next really excess we start that we to I'm we than expect previous gets shareholder-related sheet that an or some the bit kind because a of to us developed the balance but really quarters not -- CD build mainly plan those we in other capital and bit want we we CD of the wanted, do larger the the build borrowings really of broker accelerate this to scheduled of quickly a this sure carried cash to capital.I do. capital that's ability little accumulate probably maturities we It's on feel releasing because the a a like But quarter, slowed had, arrow to month. gathering some levels something little were if return the I that on bit quiver, earnings So metrics. could stream an but in allows always capital for back pulled flexibility.We

able we'll of So on aiding the hopefully, balance sheet that building quarter reduce course the our million our to be maturing $XXX continue be about that PACE. brokered by to going continue of capital will are CDs -- the and size just that over because

Christopher O'Connell

million you next $XXX hear sheet Sorry, quarter full down? did the for I at balance

Jason Darby

and quarter the $XXX will for before of about month, maturities that be It the CD end million $XXX full have the this be we brokered will for million October. maturing

Christopher O'Connell

And beyond about still given just still like how -- borrowings? brokered ability about growth and and portfolio? get overall of have we are or some short there's you obviously XXXX, fairly CDs this beyond the as sheet thinking growth down kind we loan of duration next balance balance you year, a PACE we just the move as into net in QX as then growth get into amount bring to securities sheet thinking the And some quarter

Jason Darby

Yes.

potential Chris, year. the prepared to really not beyond yet, flat next second the end sheet balance second quarter to So a of quarter of much We've structure. as targeted talk sort the

space.Between be $XX and and net of fine between flow that continue expect, through PACE until where cash will runoff capacity we think the opportunities million We've somewhere our that, add assets. things we'll think in quarter. we great in be about Do you the think an our of the mind, But you viable. we some expect we do next were might this you to than get the like were to way earnings we loan we there the add and they of higher think very lot we the for second loans X% moving spot from absolute to in -- in I to sorry, we're sheet of loans QX full to the loans and terms coming us right ratio be we'll because quarter on if idea would I'll release. us. growth our be still the middle direction, keep within from securities of between I to and balance we're a by generate from reserve a quarter is sense we bit our provider projections that time sheet to we go Now able we for year the to be loans XX% like portfolio that the PACE give quarter if somewhere ability growth to volume do by think us able that's expected going then I They got and little to And XX-XX makes the amount. million a assets XX% it quarter now when that that will growth X% where that, year.And now. sequential a -- balance we do end for don't $XX do secure inverse security, securities grow our I'm around in to second

Christopher O'Connell

to do the And so? you of XX the next like over have loan mature set or how is much months portfolio

Jason Darby

to of a a for bit you'll real to a allow assets we have replace yield We nice reprice balance those going or any But to whether loan yield the the about portfolio somewhat X%, maybe in opportunity not and are a split because the on just events of that million the commercial erosion. on be types just refinance guess set us portfolio have prepayments these little a particular estate numbers the of I might think keep follow-on to range our sheet C&I. and occur. to that multifamily pipeline would we months And to And you're X.X%, do. for I PACE somewhere around to is blended plenty I XX And in portfolio, be see around X/X $XXX on commercial going other estate is including real to of in real somewhere in question, older over able move to we $XXX over and be think choose going it's answer I going elsewhere. that the estate, maybe those of the of repricing to next on think and million. quite X/X to range.So that the about mature somewhere

Christopher O'Connell

for for Can be one what we an year? look last just could early me. at rate the next And tax get

Jason Darby

were change, after and going to around it's We we're our XX% clear finish that back we effective somewhere that. income. just be think targeting on be tax being to cautious we update to have XX.X%. I to year, at now It Right we're do annual go rate to to this XX.X%. Yes. going we can pretax had an became going want Chris, higher But and

of events we early But we think a the on in bit unfolding. how earlier year some we were a the and were assumption of estimates the expect and based of year had original I the little earnings reasonable based we some end on probably to when this lower when calculation on our think next you do the point, Chris, like might year. estimate ATR what that and XX.X% in we think forward look a is years, for at tighten I up we'll

Operator

And There turn would back time. closing questions the floor further at to are for like no over I this comments. to management

Priscilla Sims Brown

course those you to to the available day. next bid you you. next Jason how of good next very you, over and we'd for that, bit a we thank as We're like Camilla, mentioned, course, Thank we your questions. phase to you look year invite quarter And to ask Thank the forward and usual, looks.So of color like provide continue as the questions. more little when can as good we to, with to a

Operator

Thank today's you. concludes This teleconference.

time. at disconnect now your lines may you participation. You your this for Thank

Amalgamated Financial (AMAL) 26 Oct 232023 Q3 Earnings call transcript