(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit No. | Description | |||||||||||||
99.1 | ||||||||||||||
99.2 | ||||||||||||||
104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. | |||||||||||||
AMALGAMATED FINANCIAL CORP. | |||||||||||
By: | /s/ Priscilla Sims Brown | ||||||||||
Name: | Priscilla Sims Brown | ||||||||||
Title: | Chief Executive Officer | ||||||||||
Date: |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||||||||||||
($ in thousands) | 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
INTEREST AND DIVIDEND INCOME | |||||||||||||||||||||||||||||
Loans | $ | 33,766 | $ | 31,127 | $ | 30,156 | $ | 64,893 | $ | 61,265 | |||||||||||||||||||
Securities | 24,307 | 19,115 | 13,094 | 43,422 | 25,264 | ||||||||||||||||||||||||
Federal Home Loan Bank of New York stock | 45 | 40 | 41 | 85 | 89 | ||||||||||||||||||||||||
Interest-bearing deposits in banks | 551 | 179 | 131 | 730 | 221 | ||||||||||||||||||||||||
Total interest and dividend income | 58,669 | 50,461 | 43,422 | 109,130 | 86,839 | ||||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||||||||
Deposits | 1,481 | 1,402 | 1,431 | 2,883 | 3,003 | ||||||||||||||||||||||||
Borrowed funds | 690 | 691 | — | 1,381 | — | ||||||||||||||||||||||||
Total interest expense | 2,171 | 2,093 | 1,431 | 4,264 | 3,003 | ||||||||||||||||||||||||
NET INTEREST INCOME | 56,498 | 48,368 | 41,991 | 104,866 | 83,836 | ||||||||||||||||||||||||
Provision for (recovery of) loan losses | 2,912 | 2,293 | 1,682 | 5,205 | (1,579) | ||||||||||||||||||||||||
Net interest income after provision for loan losses | 53,586 | 46,075 | 40,309 | 99,661 | 85,415 | ||||||||||||||||||||||||
NON-INTEREST INCOME | |||||||||||||||||||||||||||||
Trust Department fees | 3,479 | 3,491 | 3,292 | 6,970 | 7,118 | ||||||||||||||||||||||||
Service charges on deposit accounts | 2,826 | 2,447 | 2,296 | 5,273 | 4,475 | ||||||||||||||||||||||||
Bank-owned life insurance | 1,283 | 814 | 531 | 2,097 | 1,319 | ||||||||||||||||||||||||
Gain (loss) on sale of securities | (582) | 162 | 321 | (420) | 342 | ||||||||||||||||||||||||
Gain (loss) on sale of loans, net | 492 | (157) | 720 | 335 | 1,426 | ||||||||||||||||||||||||
Gain (loss) on other real estate owned, net | — | — | (407) | — | (407) | ||||||||||||||||||||||||
Equity method investments | (638) | 432 | (1,555) | (206) | (5,237) | ||||||||||||||||||||||||
Other | 386 | 233 | 129 | 619 | 290 | ||||||||||||||||||||||||
Total non-interest income | 7,246 | 7,422 | 5,327 | 14,668 | 9,326 | ||||||||||||||||||||||||
NON-INTEREST EXPENSE | |||||||||||||||||||||||||||||
Compensation and employee benefits | 18,046 | 17,669 | 16,964 | 35,715 | 35,003 | ||||||||||||||||||||||||
Occupancy and depreciation | 3,457 | 3,440 | 3,352 | 6,897 | 6,853 | ||||||||||||||||||||||||
Professional fees | 2,745 | 2,815 | 3,211 | 5,560 | 6,871 | ||||||||||||||||||||||||
Data processing | 4,327 | 5,184 | 3,322 | 9,511 | 6,327 | ||||||||||||||||||||||||
Office maintenance and depreciation | 784 | 725 | 820 | 1,509 | 1,475 | ||||||||||||||||||||||||
Amortization of intangible assets | 261 | 262 | 302 | 523 | 604 | ||||||||||||||||||||||||
Advertising and promotion | 761 | 854 | 628 | 1,615 | 1,225 | ||||||||||||||||||||||||
Other | 3,965 | 3,448 | 2,796 | 7,413 | 5,831 | ||||||||||||||||||||||||
Total non-interest expense | 34,346 | 34,397 | 31,395 | 68,743 | 64,189 | ||||||||||||||||||||||||
Income before income taxes | 26,486 | 19,100 | 14,241 | 45,586 | 30,552 | ||||||||||||||||||||||||
Income tax expense (benefit) | 6,873 | 4,935 | 3,833 | 11,808 | 7,955 | ||||||||||||||||||||||||
Net income | $ | 19,613 | $ | 14,165 | $ | 10,408 | $ | 33,778 | $ | 22,597 | |||||||||||||||||||
Earnings per common share - basic | $ | 0.64 | $ | 0.46 | $ | 0.33 | $ | 1.09 | $ | 0.73 | |||||||||||||||||||
Earnings per common share - diluted | $ | 0.63 | $ | 0.45 | $ | 0.33 | $ | 1.08 | $ | 0.72 |
($ in thousands) | June 30, 2022 | December 31, 2021 | |||||||||
Assets | (unaudited) | ||||||||||
Cash and due from banks | $ | 6,075 | $ | 8,622 | |||||||
Interest-bearing deposits in banks | 326,463 | 321,863 | |||||||||
Total cash and cash equivalents | 332,538 | 330,485 | |||||||||
Securities: | |||||||||||
Available for sale, at fair value (amortized cost of $2,193,657 and $2,103,049, respectively) | 2,105,547 | 2,113,410 | |||||||||
Held-to-maturity (fair value of $1,317,058 and $849,704, respectively) | 1,375,666 | 843,569 | |||||||||
Loans held for sale | 5,657 | 3,279 | |||||||||
Loans receivable, net of deferred loan origination costs (fees) | 3,648,404 | 3,312,224 | |||||||||
Allowance for loan losses | (39,477) | (35,866) | |||||||||
Loans receivable, net | 3,608,927 | 3,276,358 | |||||||||
Resell agreements | 225,926 | 229,018 | |||||||||
Accrued interest and dividends receivable | 31,001 | 28,820 | |||||||||
Premises and equipment, net | 10,870 | 11,735 | |||||||||
Bank-owned life insurance | 106,163 | 107,266 | |||||||||
Right-of-use lease asset | 31,728 | 33,115 | |||||||||
Deferred tax asset | 56,194 | 26,719 | |||||||||
Goodwill | 12,936 | 12,936 | |||||||||
Other intangible assets | 3,628 | 4,151 | |||||||||
Equity investments | 6,271 | 6,856 | |||||||||
Other assets | 30,205 | 50,159 | |||||||||
Total assets | $ | 7,943,257 | $ | 7,077,876 | |||||||
Liabilities | |||||||||||
Deposits | $ | 7,291,167 | $ | 6,356,255 | |||||||
Subordinated debt | 83,899 | 83,831 | |||||||||
Operating leases | 45,605 | 48,160 | |||||||||
Other liabilities | 24,545 | 25,755 | |||||||||
Total liabilities | 7,445,216 | 6,514,001 | |||||||||
Stockholders’ equity | |||||||||||
Common stock, par value $.01 per share (70,000,000 shares authorized; 30,684,246 and 31,130,143 shares issued and outstanding, respectively) | 307 | 311 | |||||||||
Additional paid-in capital | 286,901 | 297,975 | |||||||||
Retained earnings | 288,868 | 260,047 | |||||||||
Accumulated other comprehensive income (loss), net of income taxes | (78,168) | 5,409 | |||||||||
Total Amalgamated Financial Corp. stockholders' equity | 497,908 | 563,742 | |||||||||
Noncontrolling interests | 133 | 133 | |||||||||
Total stockholders' equity | 498,041 | 563,875 | |||||||||
Total liabilities and stockholders’ equity | $ | 7,943,257 | $ | 7,077,876 |
As of and for the | As of and for the | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||||||||||||
(Shares in thousands) | 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
Selected Financial Ratios and Other Data: | |||||||||||||||||||||||||||||
Earnings per share | |||||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.46 | $ | 0.33 | $ | 1.09 | $ | 0.73 | |||||||||||||||||||
Diluted | 0.63 | 0.45 | 0.33 | 1.08 | 0.72 | ||||||||||||||||||||||||
Core net income (non-GAAP) | |||||||||||||||||||||||||||||
Basic | $ | 0.66 | $ | 0.46 | $ | 0.33 | $ | 1.12 | $ | 0.74 | |||||||||||||||||||
Diluted | 0.65 | 0.46 | 0.32 | 1.11 | 0.73 | ||||||||||||||||||||||||
Core net income excluding solar tax impact (non-GAAP) | |||||||||||||||||||||||||||||
Basic | $ | 0.68 | $ | 0.46 | $ | 0.37 | $ | 1.14 | $ | 0.88 | |||||||||||||||||||
Diluted | 0.67 | 0.45 | 0.36 | 1.12 | 0.87 | ||||||||||||||||||||||||
Book value per common share (excluding minority interest) | $ | 16.23 | $ | 16.99 | $ | 17.64 | $ | 16.23 | $ | 17.64 | |||||||||||||||||||
Tangible book value per share (non-GAAP) | $ | 15.69 | $ | 16.45 | $ | 17.07 | $ | 15.69 | $ | 17.07 | |||||||||||||||||||
Common shares outstanding | 30,684 | 30,995 | 31,074 | 30,684 | 31,074 | ||||||||||||||||||||||||
Weighted average common shares outstanding, basic | 30,818 | 31,107 | 31,136 | 30,962 | 31,109 | ||||||||||||||||||||||||
Weighted average common shares outstanding, diluted | 31,189 | 31,456 | 31,572 | 31,332 | 31,545 | ||||||||||||||||||||||||
As of and for the | As of and for the | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | ||||||||||||||||||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Selected Performance Metrics: | |||||||||||||||||||||||||||||
Return on average assets | 1.01 | % | 0.78 | % | 0.65 | % | 0.90 | % | 0.72 | % | |||||||||||||||||||
Core return on average assets (non-GAAP) | 1.05 | % | 0.79 | % | 0.64 | % | 0.92 | % | 0.74 | % | |||||||||||||||||||
Core return on average assets excluding solar tax impact (non-GAAP) | 1.08 | % | 0.79 | % | 0.72 | % | 0.94 | % | 0.87 | % | |||||||||||||||||||
Return on average equity | 15.20 | % | 10.25 | % | 7.62 | % | 12.64 | % | 8.36 | % | |||||||||||||||||||
Core return on average tangible common equity (non-GAAP) | 16.25 | % | 10.72 | % | 7.70 | % | 13.38 | % | 8.86 | % | |||||||||||||||||||
Core return on average tangible common equity excluding solar tax impact (non-GAAP) | 16.76 | % | 10.68 | % | 8.68 | % | 13.61 | % | 10.44 | % | |||||||||||||||||||
Average equity to average assets | 6.67 | % | 7.58 | % | 8.57 | % | 7.11 | % | 8.63 | % | |||||||||||||||||||
Tangible common equity to tangible assets | 6.07 | % | 6.68 | % | 8.09 | % | 6.07 | % | 8.09 | % | |||||||||||||||||||
Loan yield | 3.86 | % | 3.85 | % | 3.82 | % | 3.86 | % | 3.83 | % | |||||||||||||||||||
Securities yield | 2.66 | % | 2.28 | % | 2.15 | % | 2.48 | % | 2.17 | % | |||||||||||||||||||
Deposit cost | 0.08 | % | 0.09 | % | 0.10 | % | 0.08 | % | 0.11 | % | |||||||||||||||||||
Net interest margin | 3.03 | % | 2.76 | % | 2.75 | % | 2.90 | % | 2.80 | % | |||||||||||||||||||
Efficiency ratio (1) | 53.88 | % | 61.65 | % | 66.35 | % | 57.51 | % | 68.90 | % | |||||||||||||||||||
Core efficiency ratio (non-GAAP) | 52.90 | % | 61.07 | % | 66.80 | % | 56.69 | % | 67.98 | % | |||||||||||||||||||
Core efficiency ratio excluding solar tax impact (non-GAAP) | 52.20 | % | 61.14 | % | 64.39 | % | 56.32 | % | 64.11 | % | |||||||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||||||||||||
Nonaccrual loans to total loans | 0.67 | % | 0.84 | % | 1.64 | % | 0.67 | % | 1.64 | % | |||||||||||||||||||
Nonperforming assets to total assets | 0.82 | % | 0.80 | % | 1.08 | % | 0.82 | % | 1.08 | % | |||||||||||||||||||
Allowance for loan losses to nonaccrual loans | 161.81 | % | 129.71 | % | 73.20 | % | 161.81 | % | 73.20 | % | |||||||||||||||||||
Allowance for loan losses to total loans | 1.08 | % | 1.08 | % | 1.20 | % | 1.08 | % | 1.20 | % | |||||||||||||||||||
Annualized net charge-offs (recoveries) to average loans | 0.11 | % | 0.08 | % | 0.04 | % | 0.09 | % | 0.12 | % | |||||||||||||||||||
Capital Ratios: | |||||||||||||||||||||||||||||
Tier 1 leverage capital ratio | 7.08 | % | 7.34 | % | 7.93 | % | 7.08 | % | 7.93 | % | |||||||||||||||||||
Tier 1 risk-based capital ratio | 11.76 | % | 12.36 | % | 13.63 | % | 11.76 | % | 13.63 | % | |||||||||||||||||||
Total risk-based capital ratio | 14.42 | % | 15.16 | % | 14.68 | % | 14.42 | % | 14.68 | % | |||||||||||||||||||
Common equity tier 1 capital ratio | 11.76 | % | 12.36 | % | 13.63 | % | 11.76 | % | 13.63 | % | |||||||||||||||||||
(1) Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income |
(In thousands) | At June 30, 2022 | At March 31, 2022 | At June 30, 2021 | ||||||||||||||||||||||||||||||||
Amount | % of total loans | Amount | % of total loans | Amount | % of total loans | ||||||||||||||||||||||||||||||
Commercial portfolio: | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 743,403 | 20.4% | $ | 724,177 | 20.9 | % | $ | 619,037 | 19.5% | |||||||||||||||||||||||||
Multifamily | 853,514 | 23.4% | 813,702 | 23.5 | % | 848,651 | 26.8% | ||||||||||||||||||||||||||||
Commercial real estate | 340,987 | 9.4% | 354,174 | 10.2 | % | 351,707 | 11.1% | ||||||||||||||||||||||||||||
Construction and land development | 43,212 | 1.2% | 40,242 | 1.2 | % | 42,303 | 1.3% | ||||||||||||||||||||||||||||
Total commercial portfolio | 1,981,116 | 54.4% | 1,932,295 | 55.8 | % | 1,861,698 | 58.7% | ||||||||||||||||||||||||||||
Retail portfolio: | |||||||||||||||||||||||||||||||||||
Residential real estate lending | 1,236,088 | 33.9% | 1,143,175 | 33.0 | % | 1,085,791 | 34.3% | ||||||||||||||||||||||||||||
Consumer and other | 426,394 | 11.7% | 389,452 | 11.2 | % | 222,265 | 7.0% | ||||||||||||||||||||||||||||
Total retail | 1,662,482 | 45.6% | 1,532,627 | 44.2 | % | 1,308,056 | 41.3% | ||||||||||||||||||||||||||||
Total loans held for investment | 3,643,598 | 100.0% | 3,464,922 | 100.0 | % | 3,169,754 | 100.0% | ||||||||||||||||||||||||||||
Net deferred loan origination costs (fees) | 4,806 | 5,252 | 5,707 | ||||||||||||||||||||||||||||||||
Allowance for loan losses | (39,477) | (37,542) | (38,012) | ||||||||||||||||||||||||||||||||
Total loans, net | $ | 3,608,927 | $ | 3,432,632 | $ | 3,137,449 | |||||||||||||||||||||||||||||
Held-to-maturity securities portfolio: | |||||||||||||||||||||||||||||||||||
PACE assessments | $ | 742,146 | 53.9% | $ | 723,646 | 76.5% | $ | 545,795 | 87.4% | ||||||||||||||||||||||||||
Other securities | 633,520 | 46.1% | 222,701 | 23.5% | 79,031 | 12.6% | |||||||||||||||||||||||||||||
Total held-to-maturity securities | $ | 1,375,666 | 100.0% | $ | 946,347 | 100.0% | $ | 624,826 | 100.0% |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | March 31, 2022 | June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Average Balance | Income / Expense | Yield / Rate | Average Balance | Income / Expense | Yield / Rate | Average Balance | Income / Expense | Yield / Rate | ||||||||||||||||||||||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits in banks | $ | 305,134 | $ | 551 | 0.72 | % | $ | 423,878 | $ | 179 | 0.17 | % | $ | 510,473 | $ | 131 | 0.10 | % | |||||||||||||||||||||||||||||||||||
Securities and FHLB stock | 3,443,987 | 23,308 | 2.71 | % | 3,192,642 | 18,435 | 2.34 | % | 2,298,264 | 12,651 | 2.21 | % | |||||||||||||||||||||||||||||||||||||||||
Resell Agreements | 231,468 | 1,044 | 1.81 | % | 219,221 | 720 | 1.33 | % | 148,977 | 484 | 1.30 | % | |||||||||||||||||||||||||||||||||||||||||
Total loans, net (1)(2) | 3,504,223 | 33,766 | 3.86 | % | 3,280,115 | 31,127 | 3.85 | % | 3,162,896 | 30,156 | 3.82 | % | |||||||||||||||||||||||||||||||||||||||||
Total interest earning assets | 7,484,812 | 58,669 | 3.14 | % | 7,115,856 | 50,461 | 2.88 | % | 6,120,610 | 43,422 | 2.85 | % | |||||||||||||||||||||||||||||||||||||||||
Non-interest earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 9,296 | 9,226 | 7,545 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 266,186 | 267,689 | 266,613 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 7,760,294 | $ | 7,392,771 | $ | 6,394,768 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings, NOW and money market deposits | $ | 3,030,788 | $ | 1,332 | 0.18 | % | $ | 2,896,086 | $ | 1,247 | 0.17 | % | $ | 2,567,396 | $ | 1,174 | 0.18 | % | |||||||||||||||||||||||||||||||||||
Time deposits | 192,181 | 149 | 0.31 | % | 199,340 | 155 | 0.32 | % | 258,257 | 257 | 0.40 | % | |||||||||||||||||||||||||||||||||||||||||
Total deposits | 3,222,969 | 1,481 | 0.18 | % | 3,095,426 | 1,402 | 0.18 | % | 2,825,653 | 1,431 | 0.20 | % | |||||||||||||||||||||||||||||||||||||||||
Other Borrowings | 83,886 | 690 | 3.30 | % | 84,597 | 691 | 3.31 | % | — | — | 0.00 | % | |||||||||||||||||||||||||||||||||||||||||
Total interest bearing liabilities | 3,306,855 | 2,171 | 0.26 | % | 3,180,023 | 2,093 | 0.27 | % | 2,825,653 | 1,431 | 0.20 | % | |||||||||||||||||||||||||||||||||||||||||
Non-interest bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Demand and transaction deposits | 3,855,735 | 3,549,483 | 2,909,555 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 80,274 | 102,874 | 111,794 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 7,242,864 | 6,832,380 | 5,847,002 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' equity | 517,430 | 560,391 | 547,766 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 7,760,294 | $ | 7,392,771 | $ | 6,394,768 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income / interest rate spread | $ | 56,498 | 2.88 | % | $ | 48,368 | 2.61 | % | $ | 41,991 | 2.65 | % | |||||||||||||||||||||||||||||||||||||||||
Net interest earning assets / net interest margin | $ | 4,177,957 | 3.03 | % | $ | 3,935,833 | 2.76 | % | $ | 3,294,957 | 2.75 | % | |||||||||||||||||||||||||||||||||||||||||
Total Cost of Deposits | 0.08 | % | 0.09 | % | 0.10 | % |
Six Months Ended | |||||||||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||||||||||||||
(In thousands) | Average Balance | Income / Expense | Yield / Rate | Average Balance | Income / Expense | Yield / Rate | |||||||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits in banks | $ | 364,178 | $ | 730 | 0.40 | % | $ | 445,340 | $ | 221 | 0.10 | % | |||||||||||||||||||||||
Securities and FHLB stock | 3,319,009 | 41,743 | 2.54 | % | 2,208,263 | 24,451 | 2.23 | % | |||||||||||||||||||||||||||
Resell Agreements | 225,378 | 1,764 | 1.58 | % | 151,607 | 902 | 1.20 | % | |||||||||||||||||||||||||||
Total loans, net (1)(2) | 3,392,788 | 64,893 | 3.86 | % | 3,228,235 | 61,265 | 3.83 | % | |||||||||||||||||||||||||||
Total interest earning assets | 7,301,353 | 109,130 | 3.01 | % | 6,033,445 | 86,839 | 2.90 | % | |||||||||||||||||||||||||||
Non-interest earning assets: | |||||||||||||||||||||||||||||||||||
Cash and due from banks | 9,261 | 7,432 | |||||||||||||||||||||||||||||||||
Other assets | 266,932 | 272,930 | |||||||||||||||||||||||||||||||||
Total assets | $ | 7,577,546 | $ | 6,313,807 | |||||||||||||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
Savings, NOW and money market deposits | $ | 2,963,809 | $ | 2,579 | 0.18 | % | $ | 2,540,277 | $ | 2,395 | 0.19 | % | |||||||||||||||||||||||
Time deposits | 195,741 | 304 | 0.31 | % | 269,063 | 608 | 0.46 | % | |||||||||||||||||||||||||||
Total deposits | 3,159,550 | 2,883 | 0.18 | % | 2,809,340 | 3,003 | 0.22 | % | |||||||||||||||||||||||||||
Other Borrowings | 84,239 | 1,381 | 3.31 | % | 249 | — | 0.00 | % | |||||||||||||||||||||||||||
Total interest bearing liabilities | 3,243,789 | 4,264 | 0.27 | % | 2,809,589 | 3,003 | 0.22 | % | |||||||||||||||||||||||||||
Non-interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
Demand and transaction deposits | 3,703,455 | 2,848,401 | |||||||||||||||||||||||||||||||||
Other liabilities | 91,510 | 110,654 | |||||||||||||||||||||||||||||||||
Total liabilities | 7,038,754 | 5,768,644 | |||||||||||||||||||||||||||||||||
Stockholders' equity | 538,792 | 545,163 | |||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 7,577,546 | $ | 6,313,807 | |||||||||||||||||||||||||||||||
Net interest income / interest rate spread | $ | 104,866 | 2.74 | % | $ | 83,836 | 2.68 | % | |||||||||||||||||||||||||||
Net interest earning assets / net interest margin | $ | 4,057,564 | 2.90 | % | $ | 3,223,856 | 2.80 | % | |||||||||||||||||||||||||||
Total Cost of Deposits | 0.08 | % | 0.11 | % |
(In thousands) | June 30, 2022 | March 31, 2022 | June 30, 2021 | ||||||||||||||
Non-interest bearing demand deposit accounts | $ | 3,965,907 | $ | 3,759,349 | $ | 2,948,718 | |||||||||||
NOW accounts | 208,795 | 212,550 | 200,758 | ||||||||||||||
Money market deposit accounts | 2,540,657 | 2,416,201 | 2,136,719 | ||||||||||||||
Savings accounts | 388,185 | 386,253 | 371,047 | ||||||||||||||
Time deposits | 187,623 | 199,120 | 252,750 | ||||||||||||||
Total deposits | $ | 7,291,167 | $ | 6,973,473 | $ | 5,909,992 |
Three Months Ended | |||||||||||||||||||||||||||||||||||
June 30, 2022 | March 31, 2022 | June 30, 2021 | |||||||||||||||||||||||||||||||||
(In thousands) | Average Balance | Average Rate Paid | Average Balance | Average Rate Paid | Average Balance | Average Rate Paid | |||||||||||||||||||||||||||||
Non-interest bearing demand deposit accounts | $3,855,735 | 0.00 | % | $3,549,482 | 0.00 | % | $2,909,554 | 0.00 | % | ||||||||||||||||||||||||||
NOW accounts | 211,007 | 0.09 | % | 208,134 | 0.08 | % | 204,341 | 0.08 | % | ||||||||||||||||||||||||||
Money market deposit accounts | 2,431,571 | 0.19 | % | 2,310,294 | 0.19 | % | 1,993,643 | 0.21 | % | ||||||||||||||||||||||||||
Savings accounts | 388,210 | 0.11 | % | 377,659 | 0.11 | % | 369,412 | 0.10 | % | ||||||||||||||||||||||||||
Time deposits | 192,181 | 0.31 | % | 199,340 | 0.32 | % | 258,257 | 0.43 | % | ||||||||||||||||||||||||||
Total deposits | $ | 7,078,704 | 0.08 | % | $ | 6,644,909 | 0.09 | % | $ | 5,735,207 | 0.10 | % |
(In thousands) | June 30, 2022 | March 31, 2022 | June 30, 2021 | ||||||||||||||
Loans 90 days past due and accruing | $ | — | $ | — | $ | — | |||||||||||
Nonaccrual loans held for sale | 4,841 | 2,490 | — | ||||||||||||||
Nonaccrual loans excluding held for sale loans and restructured loans | 8,109 | 10,835 | 31,437 | ||||||||||||||
Troubled debt restructured loans - nonaccrual | 16,288 | 18,107 | 20,494 | ||||||||||||||
Troubled debt restructured loans - accruing | 35,683 | 29,259 | 18,683 | ||||||||||||||
Other real estate owned | 307 | 307 | 307 | ||||||||||||||
Impaired securities | 56 | 59 | 59 | ||||||||||||||
Total nonperforming assets | $ | 65,284 | $ | 61,057 | $ | 70,980 | |||||||||||
Nonaccrual loans: | |||||||||||||||||
Commercial and industrial | $ | 9,550 | $ | 8,099 | $ | 14,561 | |||||||||||
Multifamily | 3,494 | 3,537 | 10,266 | ||||||||||||||
Commercial real estate | 3,931 | 3,988 | 4,066 | ||||||||||||||
Construction and land development | 5,053 | 5,053 | — | ||||||||||||||
Total commercial portfolio | 22,028 | 20,677 | 28,893 | ||||||||||||||
Residential real estate lending | 898 | 7,404 | 22,320 | ||||||||||||||
Consumer and other | 1,471 | 861 | 718 | ||||||||||||||
Total retail portfolio | 2,369 | 8,265 | 23,038 | ||||||||||||||
Total nonaccrual loans | $ | 24,397 | $ | 28,942 | $ | 51,931 | |||||||||||
Nonaccrual loans to total loans | 0.67 | % | 0.84 | % | 1.64 | % | |||||||||||
Nonperforming assets to total assets | 0.82 | % | 0.80 | % | 1.08 | % | |||||||||||
Allowance for loan losses to nonaccrual loans | 161.81 | % | 129.71 | % | 73.20 | % | |||||||||||
Allowance for loan losses to total loans | 1.08 | % | 1.08 | % | 1.20 | % | |||||||||||
Annualized net charge-offs (recoveries) to average loans | 0.11 | % | 0.08 | % | 0.04 | % |
June 30, 2022 | |||||||||||||||||||||||||||||
($ in thousands) | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Commercial and industrial | $ | 710,534 | $ | 7,923 | $ | 24,946 | $ | — | $ | 743,403 | |||||||||||||||||||
Multifamily | 800,167 | 25,433 | 27,914 | — | 853,514 | ||||||||||||||||||||||||
Commercial real estate | 301,243 | 20,966 | 18,778 | — | 340,987 | ||||||||||||||||||||||||
Construction and land development | 35,736 | — | 7,476 | — | 43,212 | ||||||||||||||||||||||||
Residential real estate lending | 1,235,190 | — | 898 | — | 1,236,088 | ||||||||||||||||||||||||
Consumer and other | 424,923 | — | 1,471 | — | 426,394 | ||||||||||||||||||||||||
Total loans | $ | 3,507,793 | $ | 54,322 | $ | 81,483 | $ | — | $ | 3,643,598 |
March 31, 2022 | |||||||||||||||||||||||||||||
($ in thousands) | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Commercial and industrial | $ | 691,834 | $ | 7,221 | $ | 25,122 | $ | — | $ | 724,177 | |||||||||||||||||||
Multifamily | 745,349 | 32,737 | 35,616 | — | 813,702 | ||||||||||||||||||||||||
Commercial real estate | 291,320 | 2,899 | 59,955 | — | 354,174 | ||||||||||||||||||||||||
Construction and land development | 32,766 | — | 7,476 | — | 40,242 | ||||||||||||||||||||||||
Residential real estate lending | 1,135,481 | 290 | 7,404 | — | 1,143,175 | ||||||||||||||||||||||||
Consumer and other | 388,907 | — | 545 | — | 389,452 | ||||||||||||||||||||||||
Total loans | $ | 3,285,657 | $ | 43,147 | $ | 136,118 | $ | — | $ | 3,464,922 |
June 30, 2021 | |||||||||||||||||||||||||||||
($ in thousands) | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Commercial and industrial | $ | 568,878 | $ | 17,569 | $ | 32,133 | $ | 457 | $ | 619,037 | |||||||||||||||||||
Multifamily | 711,551 | 101,579 | 32,348 | 3,173 | 848,651 | ||||||||||||||||||||||||
Commercial real estate | 234,018 | 45,236 | 72,453 | — | 351,707 | ||||||||||||||||||||||||
Construction and land development | 34,414 | 535 | 7,354 | — | 42,303 | ||||||||||||||||||||||||
Residential real estate lending | 1,063,176 | 295 | 22,320 | — | 1,085,791 | ||||||||||||||||||||||||
Consumer and other | 221,835 | — | 430 | — | 222,265 | ||||||||||||||||||||||||
Total loans | $ | 2,833,872 | $ | 165,214 | $ | 167,038 | $ | 3,630 | $ | 3,169,754 |
As of and for the | As of and for the | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
(in thousands) | June 30, 2022 | March 31, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||||
Core operating revenue | |||||||||||||||||||||||||||||
Net Interest income (GAAP) | $ | 56,498 | $ | 48,368 | $ | 41,991 | $ | 104,866 | $ | 83,836 | |||||||||||||||||||
Non-interest income | 7,246 | 7,422 | 5,327 | 14,668 | 9,327 | ||||||||||||||||||||||||
Less: Securities (gain) loss | 582 | (162) | (321) | 420 | (339) | ||||||||||||||||||||||||
Core operating revenue (non-GAAP) | 64,326 | 55,628 | 46,997 | 119,954 | 92,824 | ||||||||||||||||||||||||
Add: Tax (credits) depreciation on solar investments | 862 | (64) | 1,760 | 798 | 5,597 | ||||||||||||||||||||||||
Core operating revenue excluding solar tax impact (non-GAAP) | 65,188 | 55,564 | 48,757 | 120,752 | 98,421 | ||||||||||||||||||||||||
Core non-interest expense | |||||||||||||||||||||||||||||
Non-interest expense (GAAP) | $ | 34,346 | $ | 34,397 | $ | 31,395 | $ | 68,743 | $ | 64,189 | |||||||||||||||||||
Less: Severance (1) | (34) | (52) | — | (86) | (1,090) | ||||||||||||||||||||||||
Less: ABOC | (282) | (371) | — | (653) | — | ||||||||||||||||||||||||
Core non-interest expense (non-GAAP) | 34,030 | 33,974 | 31,395 | 68,004 | 63,099 | ||||||||||||||||||||||||
Core net income | |||||||||||||||||||||||||||||
Net Income (GAAP) | $ | 19,613 | $ | 14,165 | $ | 10,408 | $ | 33,778 | $ | 22,598 | |||||||||||||||||||
Less: Securities (gain) loss | 582 | (162) | (321) | 420 | (339) | ||||||||||||||||||||||||
Add: Severance (1) | 34 | 52 | — | 86 | 1,090 | ||||||||||||||||||||||||
Add: ABOC | 282 | 371 | — | 653 | — | ||||||||||||||||||||||||
Less: Tax on notable items | (233) | (67) | 86 | (300) | (196) | ||||||||||||||||||||||||
Core net income (non-GAAP) | 20,278 | 14,359 | 10,173 | 34,637 | 23,153 | ||||||||||||||||||||||||
Add: Tax (credits) depreciation on solar investments | 862 | (64) | 1,760 | 798 | 5,597 | ||||||||||||||||||||||||
Add: Tax effect of solar income | (224) | 17 | (474) | (207) | (1,457) | ||||||||||||||||||||||||
Core net income excluding solar tax impact (non-GAAP) | 20,916 | 14,312 | 11,459 | 35,228 | 27,293 | ||||||||||||||||||||||||
Tangible common equity | |||||||||||||||||||||||||||||
Stockholders' equity (GAAP) | $ | 498,041 | $ | 526,762 | $ | 548,211 | $ | 498,041 | $ | 548,211 | |||||||||||||||||||
Less: Minority interest | (133) | (133) | (133) | (133) | (133) | ||||||||||||||||||||||||
Less: Goodwill | (12,936) | (12,936) | (12,936) | (12,936) | (12,936) | ||||||||||||||||||||||||
Less: Core deposit intangible | (3,628) | (3,890) | (4,755) | (3,628) | (4,755) | ||||||||||||||||||||||||
Tangible common equity (non-GAAP) | 481,344 | 509,803 | 530,387 | 481,344 | 530,387 | ||||||||||||||||||||||||
Average tangible common equity | |||||||||||||||||||||||||||||
Average stockholders' equity (GAAP) | $ | 517,430 | $ | 560,391 | $ | 547,766 | $ | 538,792 | $ | 545,163 | |||||||||||||||||||
Less: Minority interest | (133) | (133) | (133) | (133) | (133) | ||||||||||||||||||||||||
Less: Goodwill | (12,936) | (12,936) | (12,936) | (12,936) | (12,936) | ||||||||||||||||||||||||
Less: Core deposit intangible | (3,755) | (4,017) | (4,903) | (3,886) | (5,052) | ||||||||||||||||||||||||
Average tangible common equity (non-GAAP) | 500,606 | 543,305 | 529,794 | 521,837 | 527,042 | ||||||||||||||||||||||||
Core return on average assets | |||||||||||||||||||||||||||||
Denominator: Total average assets | 7,760,294 | 7,392,773 | 6,394,768 | 7,577,547 | 6,313,807 | ||||||||||||||||||||||||
Core return on average assets (non-GAAP) | 1.05% | 0.79% | 0.64% | 0.92% | 0.74% | ||||||||||||||||||||||||
Core return on average assets excluding solar tax impact (non-GAAP) | 1.08% | 0.79% | 0.72% | 0.94% | 0.87% | ||||||||||||||||||||||||
Core return on average tangible common equity | |||||||||||||||||||||||||||||
Denominator: Average tangible common equity | 500,606 | 543,305 | 529,794 | 521,837 | 527,042 | ||||||||||||||||||||||||
Core return on average tangible common equity (non-GAAP) | 16.25% | 10.72% | 7.70% | 13.38% | 8.86% | ||||||||||||||||||||||||
Core return on average tangible common equity excluding solar tax impact (non-GAAP) | 16.76% | 10.68% | 8.68% | 13.61% | 10.44% | ||||||||||||||||||||||||
Core efficiency ratio | |||||||||||||||||||||||||||||
Numerator: Core non-interest expense (non-GAAP) | $ | 34,030 | $ | 33,974 | $ | 31,395 | $ | 68,004 | $ | 63,099 | |||||||||||||||||||
Core efficiency ratio (non-GAAP) | 52.90% | 61.07% | 66.80% | 56.69% | 67.98% | ||||||||||||||||||||||||
Core efficiency ratio excluding solar tax impact (non-GAAP) | 52.20% | 61.14% | 64.39% | 56.32% | 64.11% |
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