AMAL - Earnings call transcript Q2 2024 | Amalgamated Financial Corp.

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Operator

Good morning, ladies and gentlemen, and welcome to the Amalgamated Financial Second Quarter 2024 Earnings 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 our call. With Officer. President participation Priscilla today your Brown, Sims and appreciate our me earnings is We Chief Executive

a section replay available telephonic time. an reminder, call of As be will extended of period on our of this Investors website for the a

the slide a on complement of our is also today's Additionally, section discussion website. to available deck Investors

Act XXXX, to deck within expectations factors Before risk a could or of statements. differ Securities statements Investors that certain our or call list cause filed may we contain Private investors caution as begin, let We that statements differ to such implied from actual by the forward-looking indicated on X, our XXXX. me XX-K any the statements that remind those Slide as Litigation should may of everyone materially forward-looking such for Reform well indicated that implied this results earnings by from slide meaning refer constitute of XXXX actual or information. results March X on the

over or results call, in we on A as useful measures, a with we Priscilla. be non-GAAP which our will should can of in certain for additional most discuss comparable are website. And not be non-GAAP me considered accordance GAAP isolation to today's The substitute GAAP. information reconciliation our believe this prepared well measures let U.S. turn performance. measure evaluating release earnings found these in during of to call the presentation as as the in now our Additionally,

Priscilla Sims Brown

thank joining and for Good everyone, you morning, us.

growth, returns sustainable high performance our franchise demonstrate that delivered and clearly a expand medium that is we and the impact in resonating further across outstanding provide stock earnings to quarter their with will base about our investors its We increasingly growing financial what term. us optionality look aware doing. they care continuing was customers second also results over Our ever money continuously key metrics. than model strong with mission-based as our is deposit banking enthusiasm more price to recent is Clearly, as the for purpose-driven nice become our and It see shareholders. of alike Amalgamated

a moment of Sorenson about this we its and worth being see During where and events Milken like to interesting have It's several to deposits the forefront to social keynotes, firsthand and the to actionable as become that the people or intently the can where their fireside of and Conference, list to Banks We It is and impact a meetings is conferences, other participated state. and taking the quarter, global occurring. attended well consistent impact Forbes gave Summit performance as added equity Amalgamated to top mobilized bank. like is these placed effective strong we in in of to the XXXX innovation Institute at when changemakers. Impact Global insights acceleration the product financial The enjoy panels we more recognize just changemakers responsible space chats are private from opportunity to impact each invitations leads the get in when also investing opportunities. Best to they how recognitions positive note learn meet with listened

political, peers deposits, customer nonprofit across results home performed quarter led million with our by deposit over second strength franchise our again new our above and Our union drive once this $XXX point as in segments.

size. and This in nonprofit they of were unions deposits and quarter are huge number again deposits $XXX in million union us. for are over area $XXX the a growing million. nonpolitical is rose There rose this strong XX,XXX Our growth as and U.S.,

network. strong name we segment, the has extensive As referral our effective execution runway. earned and bank unions, excited the In nonprofit are largest us for an the about recognition

balances deposit $X.X over midterm well billion ended in political achieved during ahead peak XXXX. quarter prior the and grew elections of $X.X at of the XX% our billion, Our

record. political our exiting to are donors third the spend. unprecedented I we become expect records Harris' being listed with a Amalgamated begin Election in broken President filed that space. witnessing out for increased with we response candidate that point are the forward, headlines advertising Vice enthusiasm to paperwork times Bank deposits humbled the also by during campaigns bank to fundraising Looking as in I note the want officially increase Federal quarter their among These campaign's as to to hour. the am political President, of Commission

in million In political preparation $XXX $XXX sheet at deposits funding our the has now at which the At our are we for most a will see the we $X.X network. where current of and well reciprocal quarter is above our we deposits add trough level mix the shows also nearly off-balance the of off-balance our sheet million of growth managing that modestly deposit deposits nonpolitical borrowing moved billion during likely this, our end through any in Our in year-end us end approximately 'XX. of year, the will that model trough. internal plan, XXXX within second the position scenario quarter, ahead to not now places been significant another

in quarter. climate-related industrial our while $XX largely million the by originations of and estate our Loan Turning during and commercial of and sheet. loan balance the payoffs real quarter muted were growth comprised healthy paydowns to the other commercial of loans, multifamily side was and

of after the second quarter. impact we loan weeks have the for commitments sustainable approved Looking pipeline our few several modest July, and the in year the second promising showing in of quarter, first looks lending growth to third the half

some any the the of rapidly landscape none like But we you Gas remind assume is that lending. Reduction see Greenhouse restructuring. changing. XXXX ahead, Things Fund our projections political could Looking GGRF

those yet. U.S. estimated meet of for net occur Our political $X out the XXXX, by transferred government play is emissions role to the GGRF needs, reduce landscape capital. into is dollars conservative the very this portion of just and financing finance the small which a over and will an Amalgamated XX of the require that have next the world actually matter forecasting to mobilized trillion years not fact takes to of account needed Regardless, been to a this financing climate needed no these a is X well investment as projects. important positioned We believe to provider will the

as As share recognized Amalgamated finance international only as climate to have is positioned an I but take industry mentioned earlier, not leader in impact an domestic and well. to

Finance spoken the look a are finance about a pioneering who with Zero have globally Recently, we've property-linked banks our the Banking Values. Institute, product Green Alliance financing on partnered is and long-term with Net We for mobilize Banking Global We of also Alliance alliances climate-related through especially like U.K.-based in in U.S. PACE and to here that projects U.K. globally, the similar capital see the decarbonization other participate GGRF. governments much opportunities the U.S.' public to as to

we for As grow over not for us but banking financial long ahead runway and customers that also we you of social bank. have see, good the only responsible our And can shareholders. Jason, to as you. our a business, value is communities, good appropriately results prove delivering

Jason Darby

the less it be deck things everyone. and good to try highlight most If Q&A. and cover I'll just moving, important on happy anything, hit morning, going Priscilla, miss in earnings items. I slides to I'm in Keep the you, to Thank

start Let's on off Slide X.

share. government, cost was a basis results. XX total earnings with we $X.XX significant leverage margin a obscuring had per growth results growth million low was $XX income income Our by a was points. $XX.X on back improvement of diluted of sustainable a amortization $X.X point per increase. lowered net which Net share, to million our the basis approximately and also noise and interest representing net or margin measure, produced interest interest of and loans growth non-GAAP Core or solid which million is of growing deposit The basis as in XXXX points, put quarterly C&I diluted which XX we net million second quarter a of income, little XXX is There that bit $X.XX $XX.X base. also ratio net featured deposits income quarter, accelerated our the more

anticipate margin loan will have X X.XX% basis NIM the adjusted second points around our equal. interest million would the XX of from X.XX% points to which net all $X we net our risen reduce else quarter. That $X.X to quarter's impact, prior unexpected QX, by recognizing basis deferred this in level X.XX%, in costs, said, Excluding from million of

strategy sheet deposits. balance off-balance sheet transactional deposits now are for Our to deposits comprised pay of continues excess us, and we neutral both nonpolitical and $X.X billion dividends political of managing

for flexibility sheet income. noncore great structure $X.X to sheet in balance And profitability generated our quarter, Our off-balance the and noninterest allows of million second approximately returns. sustainable deposit deposits us strength

the during our reposition off-balance the quarter. income and few we sold we've utilizing further past $XXX.X Over this another million sheet quarters, securities portfolio, been to

We of sell X, a income value first will crossing or And loans our history. off $XX.XX left, increased quarter healthy this the the to close come tangible further in securities we out and more to when book share expect earnings. time on through key that bank's the metrics to core on the performance third some this Starting we the at utilize comments. Continuing on I focused look interest during quarter. continue second $XX $X.XX our to residential to Slide per X.X% my for improving our noncore

long-term this the per for nicely quarter, increase we our a and X Our to the prior delivering basis $X.XX second shareholder value. share from core revenue was think point commitment shows diluted quarter,

Moving on with the our as and in our of especially And on pleased build assets equity to returns. across core we was we potential average base decline and of to through Core which equity return average earnings X.XX%, expect XX.XX%, mark-to-market showing return improvement. modestly bank. consistent the are power our we earnings

capital. to Moving

progress X X.XX%, have leverage or the so. and Tier basis XX over building we to ratio capital another made improved year points last significant Our

up. Our previous common improving equity tangible from to long-term X.XX%, the was ticking modestly quarter interest assets tangible rates despite

actually only $X.X value as increased a at result strategic primarily deposit XXXX, million securities million there XX% deposits the and of an Noninterest-bearing Turning strategy of traditional book of to to purchases, of Slide million in were CDs, interest points by million deposits X. the the as risk. of cost deposits, which The increase and million tells of On-balance part rate strong our June significant sheet deposits $XXX CDs, of during X. during average excluding $XX.X Total average securities basis were as second sales story. in ahead from to to noted, quarter. Jumping billion, paydowns of $XXX.X downside or ending excluding of $XXX.X $X.X billion, approximately deposits, increased our and Priscilla a contributing to portfolio offset $XXX.X in million in our quarter, $XXX.X reduce traditional X linked-quarter, growth the though XX% quarter. the brokered Slide additional brokered X.X% part deposits increased XX, XXX to

range During also $XX.X we production the repositioned with modestly in $XX R-PACE million purchases. downside million interest And add we deposit to the $XX exceeded R-PACE Net to growth. to order securities million. on an hedges looking and risk quarter million utilized the that as portfolio the growth third $XX provided production additional minimize strong million quarter, $XX call. rate PACE derivative of associated quarter, we our anticipate was the to assessment additional first we

XX, we amortization government. premium million quarter, of yield loan that to yield receivable were loans due Turning the loans a the $X.X million and to and on and our the $XX billion, an required one-time or The in margin. to a X.XX% June interest the our back at yield linked-quarter. income basis second accelerating had which to Slide loans during points total government $XX loan which the impact X. was primarily million increase the on the put decreased quarter of Net X X.X% C&I net These decrease loans compared premium, of $X.X and had guaranteed to XXXX,

to XX X, Moving XX. Slides and

in estate real maturing balance year. have real multifamily over the and at portfolio, we the loans Looking million $XXX of the commercial estate lower-priced

profile XX% credits we our in Early Importantly, pay to which set one third office-only risk loans than comprised $XX of rules. with grade of quarter, estate million of relatively portfolio we exposure basket. and CRE have to had have all office-only real credits profile our a portfolio units was for the multifamily our nicely improve of as past subject benign less stabilization pre-XXXX million, rent commercial our the will $XX off,

allowance and with the risk already our side, reserve plans been of multifamily borrowers related for all the time. On maturity well with action, at of this advance have working in feel comfortable relative coverage and we

million the $XX we of have of pre-XXXX million During third the modest across and quarter, of terms we $XX quarter, X a concessions. in pre-XXXX In credits cash exposure renewed rate combination exchange loans infusions for amortizing via maturing.

to relatively or XXXX, Moving basis. assets XX. on June of our $X.X Nonperforming million at at total assets million million period-end Slide stable decreased assets criticized and XX, to were linked-quarter $XX.X X.XX% a $XX.X

as rate high that Now ratio we approximately our elevated XX. and remained of to $X consumer Slide experienced added X% shown a additional basis portfolio our said, of that coverage XX boost of solar million we charge-offs points, net reserves charge-off on to

have the ratio ACL that in coverage seeing CECL to move we of to order we solar decision model. trends made portfolio, Given our have our been higher in potential year-end changes consumer our the get ahead in

XX. Turning to Slide

raising of $XXX core $XXX pre-provision and $XXX million XXXX. to forward the million income pretax the million are which year net of We our to to curve rate earnings guidance of full XXXX considers for effect million, interest $XXX

basis in beyond XX point forward currently $X.X target curve million sheet decrease for our interest million net billion. Additionally, suggests, for down year-end income parallel the annual what decrease annual in conclude, the net we in approximately preceding a from $X.X to we quarter. To rates balance a in approximately updating decrease are income interest estimate $X.X size

very wholesale leverage concludes. We've well the us nonpolitical outflows important Tier slightly a we believe franchise. at support political have expect balance ahead are deposit we believe for can X.X% in the quarters. not election been growth, when in improve through balance and larger happy even presidential our now most sheet that quarter significant we beyond with X we the the the still factor was expand our We deposit and to of performance the likely for the leverage sheet, plan deposit fourth we coming consistently said gathering will of need remarkably it's year, the Halfway our funding

deferred be but quarter. some believe reasonably X to likely interest the the third noninterest-bearing how anticipate net are X Amalgamated deposits can quarter, the X discussed $XX pressure will outlook could first fourth as election, interest the at runway costs our a expand year. Briefly Correspondingly, us range margin expansion. we as growth optimistic continue and inflection will to we basis basis we the third points, earlier. the point be margin million $XX the including and we expansion at likely basis X current fact, for believe well net between third between points points income into ahead our to million basis also earnings of we In the effect deliver absorption for yield to see beyond shows margin looking serve of as we minimal quarter, that heading our and points out off quarter XXXX In new will loan have the much in

line up Operator? to well. we to and third that, the closing, for forward remainder results to for with the quarter any all in with the operator happy of very ask look We the second in October. And and I'd results optimistic open our So quite our with XXXX as are year like updating again you are quarter questions.

Operator

of Thank Lee our is first JPMorgan. Instructions] line with And from question the Janet you. [Operator

Sun Lee

reported It your market cost of from confident your is pressure you on and New in how loss the pretty expectation one peers your are you past your if your portfolio credit quarter? large update on sufficient? from a So appears office give makes Can metrics on reserve what rent-regulated asset have stable. credit credit an rising current And ratio York us portfolio. at the over all, that rent-regulated credit your changed,

Jason Darby

portfolios It's I'll estate take we We've do aware the good think right our and unfortunate, that portfolio but We of rather Janet. client that news. publicly different. is really that. similar, Thanks, our base about geography the some are now, the from feel we're news. quite different that portfolio, is negative other the bit reporting just real nature spoken the of the are a banks of but about

or there this between continue advance properties actually to effectively. terms the are we're the through place with with to the to a of the borrowers the portfolio, past this most CECL take combination forecast but ACL due modest the and in having was those there. talked and think quarter. and benefit ratios a tranches, market relative the the about not And what did loans to the were benign quarter, multifamily amortizing The all are. cash no strong In properties, flat the that multifamily we're We LTVs of factors expectations are have reserve the least else been had terms. We their put million into to this be the had so renewal style to a able the came to portfolios outcomes find consisted being macroeconomic model, on million give path, we well keep those pre-XXXXs, and reserve CRE those of the very loans of that $XX the concession have from cash renewals at in deal prior in those very we some relative or keep to upcoming we there again are surprises borrower about we elected equal, our the the We on renewal and quarter, before, of the rate coverages. which we've really with active rate some but we to conscious very injection ability And for date, renewals renewal of $XX both in manage think that in million any success risk due. to strong second $XX susceptible borrower, the but we've our borrowers macroeconomic coming quarter pre-XXXX this the able anticipated we think in good

But the forward, those feel towards approach move the ratios the a to up coverage time. cautious we history given take going a portfolio. portfolio we see didn't at and very this need we loss again, Just how

very are have each certainly that We to a eye of the see in there are credits coverage otherwise. a was risk, significant And anything if results that very, close you'd that on relative financial felt we ratios there. or our

very we little banks your that nature we we way us that factor status long but other the manage question, So cautious deciding where the of the and for and answer amount did a portfolio a with in very, a current are to to portfolio, management it. Janet, is a derisking continue I between proactive differentiating we have prior and of be some think we'll now, or right in bit the the of

Sun Lee

That's on Okay. helpful. And just very solar. consumer

X.X% the is that the that level we until asset this how that? run expect quarters we think ratio in we rate rate ratio, you So net get Or a coming the good of sort charge-off the should is cut? charge-off class? Like of net about expect should a from that that

Jason Darby

it's use going good to we see substantive until think more rate a I forward proxy decline. a

which quarter, NCOs XX I the that range end higher -- in to XX this I basis think rate right charge-off points points. the were basis the highest is basis of about now. we've points a had XX like

We active are driving recoveries. very in

haven't to your could the closer for to see of believe loss portfolio we And think of as the But statements quarter. ratio some think coverage at as conservative demonstrate that do that's going financial end a metrics but bit yet, better where year. CECL on some proxy benefit the we a that be of financials. use little moving X% overall this the it's the point recovery through until get flow to this why current the can up consumer moved more we're there to We forward we going impact at rate able point. We through a it's I been that I level to have

coverage, and and a or than a So to an a adding prudent have was would rate being charge-offs higher portfolio at of reflective do looking thing forecast rate loss little more think there really probably bit a at liked of of ongoing we that this higher in point. the we elevation

Sun Lee

C&I Can it Priscilla, in there. increase C&I, seeing like modest half also payoffs rate more you well the details growth looks on XXXX the more XXXX. talked half little us second some are some growth and a in back as we lessening as And as growth of head potentially give we on it. about guys you get overall cuts? commitments loan your about Got you expectations as heading into year hopefully, of the and Okay. into

Jason Darby

and C&I. In little it more I'll then part the over we for Yes, the show the flip forward take a to that absolutely. first look. of of growth Priscilla much the question, didn't bit current Jan, quarter, in

fact, million that another In the activity but and down net some booked about very We was from during previously there or $XX was was so climate-related, it that quarter. actually of had good were that originations really had I new million drawn $XX happened slightly, think deals. we all

also weren't pass-rated with those X in We points happen results. a couple was loans, it the ] a one in upcoming payoff We had quarters. had obfuscated thrilled quarter our but grade. of from of C&I good the We [ might the that that outcome

very payoff government. $XX to the back is USDA good a actually the we thing. And loans million So of very, then put

So we commitments in And net-net, decent obfuscated had closing that reflected far our nice sheet July of in off-balance pretty we in a quarter reserve. some thought it really was early C&I. are what so

a think the want So bit Priscilla, look like? we you some will about little there. we think what And [indiscernible] momentum to there's do share

Priscilla Sims Brown

be Janet, of million. -- X%. the a targeting we that And still the $XXX are Sure. quarter, pretty equates about something the Sure. target of $XXX in think full loans. million Sure. fourth And along I somewhere $XXX Yes. year, $XXX to third that comfortable and the to to both lines quarter will million for between million about of with we're

account just between million end point the we draw $XXX the I see through of that is course GGRF through somewhere in else. Jason at to we're million for draws, in But to by may the both takes pipeline we mean, million think climate-related just into bring anything just from in the $XXX and loans or that today. This of amount normal a made this And the $XX business we will that the Of pipeline, about anything about year. So quarters. year. that, expect looking like going the come of on none to

Sun Lee

question, your outlook helpful. on could. versus market quarter your quarter if in it. for cost get last deposit and give decline It curve, in Can competition fourth Are similar NIM the potentially the us your costs rate of pace year? in I interest-bearing my second this the a last forward assuming quarter? expect Got you you that third the we quarter. pricing appears color couple deposit year, of That's a deposit the experienced as that the some and the you cuts of baking you towards the end And

Jason Darby

the suggests. So there, the -- get points cuts assume NII update I on think deposit we trend, back we does the the be you forecast the for of rates them basis the just cost curve in guidance it stated we based end tell at that third we quarter. it the and seen up quarter rate that that to of were how the we've the as -- had forward we way gave to had of predicting right second this XX funds rates, around The the

those turn disclosure funds in nicely. have on going. as indicator our market our of the think press release overall cost I a deposit pretty as our tracked I usually are to where deposit to rate And good money

competition. our the latter in not the deposit quarter, have seen quarter of the second pricing third relative and half to into any early We pressure significant

in I to that's rest when the deliver -- will. and we expansion that big get the quarter. That not the hoping quarter, to said, throughout interesting be the election the third it get cost fourth the I'm as going I cycle. of stated get everything presuming we of of to in third big contributor to so is stays we margin to and NII expecting to for I our think quarter, ability a said, should funds quarter, fourth the be a increase balances When what think And the migration are before

to We've estimating cost higher Janet, $X.X bank effect quarter will deposits off-balance sitting been smooth campaigns. billion political books in deposit out our right figure, So now. the higher any had of fill somewhere the use might to the had, consciously into we for around to the $X sheet move the fourth about And some keeping of need borrowings for we're gap got on have outflow. the we cost out billion

that looks right any we're support funding outflow. need don't we now, it As or think to borrowings wholesale to going

first while noninterest-bearing would on deposits do lower quarter. to in than you probably be little right we third the the expect a showing balance if move out, are rates we're that onto will, our bit deposits So the priced stated back the what now interest-bearing sheet

XXXX. to NII as quarter really math, the gives we move normally on that so and have a in an hopefully, to if would in -- And for growth expected of will, up set into than you fourth a and we new get margin lesser impact the us the and point inflection expansion margin

if a dissect was that follow-on, to I'm lot. a take little want happy you a that bit. So to

Sun Lee

helpful. very That's it. that's No,

Priscilla Sims Brown

you'd as Janet also end asked talking [ we'll year of usual. more the ], but the be about about that at 'XX,

Operator

of Sandler. line Our Mark next questions are from with the Fitzgibbon Piper

Mark Fitzgibbon

at candidate will in affect the the third the deposits was do I Democratic late the you quarter presidential political of flow all? in Priscilla, change curious, think

Priscilla Sims Brown

above you've billion cycle. Well, peak the the about are trending as be where already would we seen, later at $X.X towards point we normally a in

I on So enthusiasm sides both will the think continue.

and kicked as grow. up, and you've last think seen fundraising, new has continue to see those there's four think you'll numbers in days I the enthusiasm I

no, I expect see to going that you're don't decline. a So

Mark Fitzgibbon

total to political a just percentage guys trying have the sense represent? a pie a for that Democratic you you guess $X.X the deposits for whole? billion of of what get have as represents And maybe sense the I percentage I'm what political a do in do deposits you a as

Priscilla Sims Brown

but have -- just I on looked that, the at much don't not think and general and ] fundraising others elections [ so dim we your that. side, but do firm and on

I the Because number ActBlue super other people know think don't also mind, don't and candidates ecosystem So PACs. that been And whole you. the keep major It's it's their ecosystem. has the larger what what to and raise the have just clients. in don't I fundraising of I like -- in not

Jason Darby

but number. the campaign. be don't like the have that Amalgamated we the significant a point campaign Commission, is Party. We what record for Bank to And indicator portion, Democratic for moved recently her We bank have filing has Federal know so towards the the presumptive an Harris of -- been as would Election election we listed as with to nominee

in And finance so gives to how a this relative we entrenched able the position important think good occurred that change of significant process. pretty it the that of and see is process really without share what in quote just our is party specifically Amalgamated Party. it's And to the Democratic hopefully, do our campaign that a being to with indication space, whole

Mark Fitzgibbon

changing if like? you that the this Okay. multifamily real what with -- I Great. back commercial yields half the estate gears are bit. in loans was And could average the share and look us little mature on this of then a set year wondering to

Jason Darby

a some C&I on moving loans half Yes. of of the for side, this, noise X% and you have the the year, to for coming bit we're CRE. the probably in We're going asked side, C&I Back though little they're that going shorter-term the multifamily higher-yielding to but have on off the because books. range still that low not

grow while going yield we're side. we're higher-yielding replace ability assets on real portfolio, the have C&I the to to some going get to some So relative to estate to

year, back that but of what's will in hopefully the on gives portfolio. sense effect of turning estate real you muted over a the bit half be the a little So the

Mark Fitzgibbon

loans rates I then second think, million It of terms new did in What on quarter. does. of you $XX in multifamily And loans originated, kind come at? the of like those

Jason Darby

[ ] on X% real somewhere X% those X.XX% to to low coming LTVs call range. strong. ], The it, were on X% in were [ that They high the, Yes. in

prudent we've I'm I credits, think booked happy to estate we some real really were with point really of and those that from a able client add view. assets

Now spreads tightening a rates down come have up. and are bit

going in third more real that think ] bring-ons to assets the for range be We're we're have mid-X% So estate it's third those [ going same I we would types the quarter. the don't low in of do to to in quarter. thinking

Mark Fitzgibbon

share you on could us lastly, in fourth the expenses with Okay. thoughts third any and quarter? operating And then

Jason Darby

Yes.

little very to was run had our quarter were our a we a said moving lower We QX, but expected. rate. OpEx are this according little in plan. annualized that that QX in versus We were much than accelerated We

and annual targeting very to both for be a We $XX.XX the rate, much and lines million run something or run We QX think quarterly we're expense along those are that. expense tracking QX. $XXX rate would million

that we may said, If the get to forecasting core QX work had some how we'll for start, year higher we'd a of to that we affect but about continue increase mindful, very year be OpEx, get advance necessarily project open our to next the very new call. that would head this when into towards look Now track of end be guidance, obviously, we would to we scheduled which the efficiency. and

that from and So next maybe into line as $XXX up number adding the potentially long the than year would or million be have that a would bit to coming top to there, base expense would as $XXX we $XXX is million. drive little sooner million we Mark,

Mark Fitzgibbon

you. Thank Great.

Jason Darby

very welcome. You're

Operator

from KBW. of question Chris the with O'Connell [Operator The line Instructions] next is

Christopher O'Connell

start back to the wanted into off year. just the of on political the the flows So and deposit half

So change, if the sheet billion and [ billion think balance to deposits everything on million right, $X.X there's now. I only million right $XXX reading ], of with $X.X $X.X that political the and change about total Is -- I'm correct? about billion $XXX

Jason Darby

It's We've part bit now. for of I you little on but back I off-balance off, probably the numbers Chris. we political billion a about the that's bit a little that $XXX that, sheet deck think earnings right reconciliation in It's sheet. more the on a do to million closer those got have on $X balance the side. might of

Christopher O'Connell

Okay. Got it.

less, and million -- election or the fourth so -- then really change large deposit a reduces only $XXX sheet in So the risk quarter, maybe reduction? more to like $XXX the with off-balance million cycle sheet on-balance of even of the

Jason Darby

it the against first deposits mean, as the outflows. deposit defense, I I line of the think that's a think would right. would that about ones It's mix. just the go political if be off-balance sheet more about you

be would we've all be funding a would what would specific about higher we off-balance blip back funding that that we a not the you'd out to the that to ratio deposit that quite we're the be thinking to cost that's would be it sheet have the this the for they're I'm purpose that off-balance go because the deposits probably our to off-balance sheet $X out was go and to to And political how been just benefit it. sit should idea that's the a your of like if some that $X.X in be that at obviously, of but case, about sheet exactly if overall for sheet outflow the not political. to books impact, to noninterest-bearing have price you those on-balance windows costs. now, answering way drive deposit not talking I around happen mix priced the effectively expect sheet bit there if like political for earlier, that having X, or that billion and seeing off-balance interest-bearing had we'd if reduce we've So the right taking on campaign, outflow past, sheet about And would on I'm be changing will, funds. you'd but bit. But interest-bearing wholesale $X.X coming Jan wild billion billion hole we equal, of on-balance and down least cost nice done in sure think plug said of and a question, or had I before, in relative deposits the on borrowing

Christopher O'Connell

very yes. No, That's helpful.

ICS of expectation down then growth quarter that in your some the in revisit of kind that that fourth kind that or of XXXX? intention the off and on into there's then X third level to trends additional the the you is of deposit level excess fees quarter so and probably And depending get strategy

Jason Darby

off-balance here so the sale, and that restructuring trick $XXX outflow to where for in matched if some fourth beyond you billion $X.X can going of billion, form some create we are to do be great outflow is to the be, X we billion? will And baseline is of a Chris, end $X at or range. want that assumption, and the stream. ability in I going balance to that know. But have the moving then we the be balance to loans to improve in, additional less fairly up Chris. assumption, sheet the residential at ICS relatively to QX, think going substantial sheet in think we at opportunities be $X.X and some would fees the that start the the going political deposits still building be That securities, baseline level looking is back our We particularly we better Is this and we would get it to just sheet, The outpace keep continue to really continue our be about that's quarter, our if million, said what get theory, we going to of to is you we closer you which was XXXX, think trough think earnings more? it to don't to for

does more will year. else in it happen all could that that the for -- ICS start end see So we to hopefully us. coming And income the way in in, theory, if way, up that's this

Christopher O'Connell

you then have the what balance the that mentioned on securities sold those quarter. sheet at? Do you And were yield Great. the during were

Jason Darby

that get top I don't on can okay don't send minute, you. somebody in post, or have can I hold you I that I a on the note. you -- head, that a -- off can can if But my know me get I probably of that exactly if for answer. perhaps that's for the

Christopher O'Connell

the year. maybe then ballpark of you the yields sense margin and about size you there? the have on just more of bit the what left help to the in back doing be Any And to little Yes. out able do a talked just that to half of

Jason Darby

Yes.

little portfolio. that a to we be want On to portfolio, resi. Number to estate portfolio. clip X mean, earnings we securities we're that, do priced to still I high liquidity two, might particularly non-agency in out In And think some strong a on mid-X do little range, a we couple bunch able of the so, loans. get of have the now on ] we last securities really a stream. get now that we probably demonstrate bit now, there's X.XX% we've of where of impressive year. to of the some X% it, bit moving pretty more to flip of focus agency the that paybacks balance is portfolio the ] securities [ in the be can loan where some [ those less what things, done the want a that's the can more have we focused over in move more is want the portfolio, right We'll fair turnover of we with Number But real terms assets and opportunity $XXX [ space, million pricing where range ] quarter call first assets since time or relative one, restructuring. sheet. to in to to lowest that we

in that's we more the much to third where be the And ICS to focus going quarter from how generate is the so relative of income.

note, on securities, the less a off for quarter. were more getting in new third took just the around X.XX% Chris, I'm or And figure that with the securities we So loans. sales

So I securities, of sorry, X.XX%. that I little a second that gives bit hope I hope I'm we're X.XX% to the in for I you gives -- quarter. sense you again, what -- a said the little a sorry, do. And trying to

the third and fourth going X.XX% misquote the more earlier. that for in we securities think do might to apologies I the that quarter it's X.XX% in quarter. Also, range be for to

Christopher O'Connell

little half year? can the then bit of socially organization that's the about the you all of deposit a deposit into talk of or kind And back rest pipeline nonpolitical the good. No, just the responsible

Priscilla Sims Brown

It connection us, Chris. the really a with the and place a reflection really between That's the for of is not-for-profits enjoy Yes. conversations we story or of good them. of that kind part incredible take that credibility

we have of lot that arena. referral clients that business not-for-profit who or a in to So existing moved to have one from continue really is relationships strong from another. from clients And

there's also climate-related as placing course, then, And of the deposits. worked very well. organizations well So that's out

Christopher O'Connell

from of Great. a have organizations forward. positive business the on updates you -- potential, in of talked side you've business the basis? see impact way that on And some the those of kind and then you go-forward about other trust Any what a the going

Priscilla Sims Brown

You're specifically trust to the business? speaking

Christopher O'Connell

Yes.

Priscilla Sims Brown

Yes.

Okay.

doing what side very quarter, together feeling leader. brought on we we I'm now. right good Yes, Sorry. under the one the are moved organization on Last new leader, about trust a

the -- one So responsibility you P&L. ability profit one and have for person center real the with

is now the and We space largest think the quarter. the also obviously, that the brought just continuing are surface surface clients in we're our union on services we the bank to scratching awareness there. space, in We're expand and there. in barely as the new scratching huge, We even opportunity, only providing

And union so in we optimism to have a lot space. it trust of the as relates

Operator

time, this Priscilla back this now turn for the floor to session. concludes closing remarks. At Sims question-and-answer our I'll Brown

Priscilla Sims Brown

to year. like advantages work demonstrate I'd of we our employees their the continue enjoy to the second Great. think dedication as thanks results. And all competitive appreciate Thank half and quarter we've all shows that you, offline to operator. strength to second that their look the the them the quarter fine-tune and you those our work and hard for as and questions. thank for bank to of conversations continued to And We our the opportunity of your we discuss to good hope We to models. the we customers.

forward without Our team in of look more We're success earnings further high the that third occurring, To finance, drive positioned a progress for climate and updating to you avenues for over on a call. would multiple strong significant our specifically last changes at We're Bank. I and our be returns. on are that with secular well commitment and not to well really quarter conclude, lay the that and base level growth years. the the opportunities determination with could maturing Amalgamated is the talented of be possible operating I not excited course ahead X

look So time continuing we once to dialogue. again, and thank you your today, for forward the

Operator

That conference. concludes today's

day. your time. have a your for and this participation, you You disconnect wonderful may Thank lines at

Amalgamated Financial (AMAL) 25 Jul 242024 Q2 Earnings call transcript