Amalgamated Financial Corp. · NASDAQ:AMAL
Amalgamated Financial — Q1 2022 Earnings Presentation
24 slides from Amalgamated Financial's earnings presentation, Apr 28, 2022
Slide 1: First Quarter 2022 Earnings Presentation
Amalgamated Financial Corp. First Quarter 2022 Earnings Presentation April 28, 2022 amalgamatedbank.com Member FDIC
Slide 2: Safe Harbor Statements
Safe Harbor Statements INTRODUCTION On March 1, 2021 (the “Effective Date”), Amalgamated Financial Corp. (the “Company”) completed its holding company reorganization and acquired all of the outstanding stock of Amalgamated Bank (the “Bank”). In this presentation, unless the context indicates otherwi
Slide 3: Safe Harbor Statements cont.
Safe Harbor Statements cont. NON-GAAP FINANCIAL MEASURES This presentation contains certain non-GAAP financial measures including, without limitation, “Core Operating Revenue,” “Core Non-interest Expense,” “Tangible Common Equity,” “Average Tangible Common Equity,” “Core Efficiency Ratio,” “Core Net
Slide 4: 1Q22 Highlights
1Q22 Highlights INCOME STATEMENT • GAAP net income of $0.45 per diluted share • Core net income excluding the tax credit or accelerated depreciation impact of solar tax equity investments was $0.45 per diluted share(1) • Core pre-tax, pre-provision income(2) excluding the tax credit or accelerated d
Slide 5: Solar Tax-Equity Investments
Solar Tax-Equity Investments OVERVIEW OF SOLAR TAX-EQUITY INVESTMENTS • Immediate realization of tax benefits and subsequent accelerated depreciation of the value of the investment creates volatility in the GAAP and core earnings presentations • Metrics excluding the impact of tax credits or acceler
Slide 6: Trends
Trends KEY FINANCIAL TRENDS THROUGH 1Q22 ($ in millions) Loans + PACE Ending Deposits 6.3% 13.3% > CAGR(1) > CAGR(1) $4,156 $6,973 $3,905 $6,356 $3,703 $3,868 $724 1.6% $5,339 $264 $421 $627 CAGR(1) $4,641 $3,211 (Loans) $4,105 $3,447 $3,433 $3,277 2018 2019 2020 2021 1Q22 2018 2019 2020 2021 1Q22 C
Slide 7: Deposit Portfolio
Deposit Portfolio TOTAL DEPOSITS 1Q22 HIGHLIGHTS ($ in billions) • Total ending deposits increased $617.2 $7.0 million compared to 4Q21 due to momentum $6.6 in political deposits related to upcoming elections, new relationships in core markets, $6.4 $6.2 $6.3 and consumer deposits $5.9 $6.0 ◦ Politi
Slide 8: Political Deposits
Political Deposits HISTORICAL TREND ($ in millions) $1,212 $1,149 $1,101 $1,015 $990 $775 $791 $692 $603 $579 $511 $419 $271 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 8
Slide 9: Interest Earning Assets
Interest Earning Assets INTEREST EARNING ASSETS OF $7.4B AS OF MARCH 31, 2022 We maintain a diverse, low risk profile of interest earning assets • No fossil fuel exposure • $254mm of government guaranteed loans • $341mm residential solar loans with strong credit profiles • $994mm agency securities C
Slide 10: Loans and Held-to-Maturity Securities
Loans and Held-to-Maturity Securities 1Q22 HIGHLIGHTS HELD-TO-MATURITY SECURITIES ($ in millions) • Total loans increased $158.0 million, or 4.8%, compared to 4Q21 due to new loan originations PACE (HTM) Non Pace HTM PACE (HTM) Yield Non-Pace HTM Yield during the quarter, partially offset by loan pa
Slide 11: Investment Securities
Investment Securities SECURITIES – BOOK VALUE(1) $3,420 1Q22 HIGHLIGHTS ($ millions) $994 $2,946 • Investment Securities totaled $3.4 billion book value for 1Q22 $929 $2,662 $871 • Securities increased $410.4 million in 1Q22 $2,425 compared to 4Q21 with continued mix shift $2,199 $848 $724 toward no
Slide 12: Net Interest Income and Margin
Net Interest Income and Margin NET INTEREST INCOME & MARGIN 1Q22 HIGHLIGHTS ($ millions) • Net interest income was $48.4 million, compared to $47.1 million in 4Q21 Net Interest Income Net Interest Margin • 1Q22 NIM at 2.76%; a decrease of 1 bps $48.4 and 9 bps, compared to 4Q21 and 1Q21, $47.1 respe
Slide 13: Non-Interest Expense and Efficiency
Non-Interest Expense and Efficiency NON-INTEREST EXPENSE 1Q22 HIGHLIGHTS ($ millions) • Efficiency ratio of 61.7% for 1Q22 $35.0 $34.0 $34.0 $34.4 • Core efficiency ratio excluding the tax $32.8 $32.6 $33.0 $31.7 $31.4 $31.4 credit or accelerated depreciation impact of our solar tax equity 71.5% inv
Slide 14: Non-Interest Income
Non-Interest Income NON-INTEREST INCOME 1Q22 HIGHLIGHTS ($ millions) • Our trust business held $39.7 billion in assets under custody and $15.1 billion in assets under management, compared to $7.8 $40.2 billion and $17.3 billion, $7.4 $7.3 respectively, in the preceding quarter; $7.1 $7.1 $2.2 this d
Slide 15: Allowance for Loan Losses
Allowance for Loan Losses ALLOWANCE FOR LOAN LOSSES (ALLL) 1Q22 HIGHLIGHTS CHANGE FROM 1Q21 TO 1Q22 ($ millions) • Allowance for loan losses totals $37.5 million as of 1Q22, or $1.6 million higher compared to Allowance Waterfall 4Q21 primarily due to higher loan balances offset by improved loss and
Slide 16: Credit Quality Portfolio
Credit Quality Portfolio NPA / TOTAL ASSETS 1Q22 HIGHLIGHTS 1.27% • Nonperforming assets were $61.1 million as of 1Q22, 1.08% compared to $54.6 million in 4Q21 0.99% 0.77% 0.80% • Net charge-offs of 0.08% in 1Q22 was 36 bps lower than 4Q21 due to increased charge-off activity in the prior quarter re
Slide 17: Returns
Returns Core ROAE & Core ROATCE ex-solar (1)(2)(3)(4) 11.9% 12.3% 10.7% 11.1% 10.4% 10.7% 8.9% 9.2% 8.4% 8.7% 1Q21 2Q21 3Q21 4Q21 1Q22 Core ROAE ex-solar Core ROATCE ex-solar (1) Refer to Reconciliation of Non-GAAP Financial Measures on slides 22-23 for further details (2) ROAE was 9.1%, 7.6%, 10.3%
Slide 18: Capital
Capital TIER 1 LEVERAGE RATIO 1Q22 HIGHLIGHTS 8.35% 8.32% 8.39% 8.26% • Regulatory capital ratios remained strong 7.84% 8.06% 7.93% 7.85% ◦ Consolidated Tier 1 leverage 7.62% ratio of 7.34% as of 1Q22 7.34% ◦ Excluding the excess 1Q21 2Q21 3Q21 4Q21 1Q22 liquidity(1), tier 1 leverage ratio Tier 1 Le
Slide 19: Tangible Book Value
Tangible Book Value TANGIBLE COMMON EQUITY & TANGIBLE BOOK 1Q22 Summary VALUE ($ millions) • TBV decline primarily driven by a $46.3 14 million decline from the previous quarter in 1 the tax effected AFS mark-to-market (2) (3) adjustment 547 ◦ TBV decline of 6.3% in line with estimated peer averages
Slide 20: 2022 Guidance
2022 Guidance 2022 FINANCIAL OUTLOOK - REVISED • Core pre-tax pre-provision earnings(1) from $75 - $85 million to: ◦ $97 - $105 million - includes effect of March 2022 25 bps rate hike ◦ $110 - $120 million - includes effect of forward rate curve through 2022 • Net Interest Income from $184 - $192 m
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials As of and for the Three Months Ended March 31, 2022 December 31, 2021 March 31, 2021 (in thousands) Core operating revenue Net Interest income (GAAP) $ 48,368 $ 47,081 $ 41,844 Non-interest income 7,422 12,361 4,000 Less: Securities (gain) loss (162) 106 (18) Co
Slide 23: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials As of and for the Three Months Ended March 31, December March 31, (in thousands) 2022 31, 2021 2021 Tangible common equity Stockholders' equity (GAAP) $ 526,762 $ 563,875 $ 540,222 Less: Minority interest (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,93
Slide 24: Thank You
Thank You amalgamatedbank.com Member FDIC
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