CORRECTED-Amalgamated Financial Q2 adjusted EPS beats estimates, margin flat

Overview

• Amalgamated Financial Q2 net income rises to $26.0 mln, driven by increased non-core income

• Adjusted EPS for Q2 beats analyst expectations, per LSEG data

• Net interest margin remained unchanged at 3.55%

• Deposits grow 4.3% to $7.7 bln, political deposits jump 13%

Outlook

• Company expects tax rate to be 27.3% going forward

Result Drivers

• NON-CORE INCOME - Increase in non-core income from solar tax equity investments contributed to net income growth

• DEPOSIT GROWTH - On-balance sheet deposits rose by $321.2 mln, driven by political deposits

• CREDIT LOSSES - Provision for credit losses increased due to higher reserve for one syndicated commercial and industrial loan and macroeconomic forecasts

Key Details

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 $35.50, about 6.4% above its July 23 closing price of $33.22

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX5XhwDs