Overview

• U.S. commercial bank's Q2 net income hit record, driven by higher net interest income

• Net interest margin rose to 3.78% as loan and deposit growth continued

• Company approved new $40 mln share repurchase program

Outlook

• Company says it has raised guidance following record profitability and margin improvement

• Amalgamated sees strong deposit and loan growth supporting future performance

Result Drivers

• NET INTEREST INCOME - Higher net interest income driven by increased loan and securities yields, commercial loan origination, and PACE assessments

• PROVISION EXPENSE - Lower provision for credit losses after prior quarter's reserve build boosted profitability

• DEPOSIT GROWTH - On-balance sheet deposits rose $280 mln, with political deposits up $212 mln, supporting asset and loan growth

Company press release: ID:nBwzHRxqa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Core EPS	Beat	$1.10	$1 (2 Analysts)
Q2 EPS		$1.15
Q2 Core Net Income		$33.10 mln
Q2 Net Income		$34.77 mln
Q2 Net Interest Income		$86.06 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Amalgamated Financial Corp is $50.50, about 7.5% above its July 22 closing price of $46.96

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

• July 21 - KeyCorp quarterly profit rises on interest income strength

• July 21 - Webster Financial Q2 revenue beats estimates on loan, deposit growth

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