Amalgamated Financial Corp. · NASDAQ:AMAL

Amalgamated Financial — Amalgamated Bank — Q1 2019 Earnings Presentation

18 slides from Amalgamated Financial's earnings presentation, Apr 30, 2019

  1. Slide 1: First Quarter 2019 Earnings Presentation

    A Best in Class IPO September 27, 2017 Amalgamated Bank First Quarter 2019 Earnings Presentation April 30, 2019

  2. Slide 2: Safe Harbor Statements

    Safe Harbor Statements FORWARD-LOOKING STATEMENTS Statements included in this presentation that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities

  3. Slide 3: 1Q19 Highlights

    1Q19 HIGHLIGHTS 1Q19 Highlights  Reported Net Income of $10.8 million  Reported EPS of $0.33 per diluted share  Core earnings1 of $10.7 million  Core earnings per diluted share of $0.33  Deposit growth of $1.8 million, or 0.2% annualized to the prior quarter  Adjusted deposit growth of 34.8% a

  4. Slide 4: Deposit Portfolio

    DEPOSIT PORTFOLIO Total Deposits 1Q19 Highlights ($ in millions) $4,033 $4,105 $4,107 $3,962 $327  Total deposits were $4.1 billion, essentially flat $3,336 compared to 4Q18  On an adjusted basis, deposit growth of $328.5 million, or 34.8% annualized, compared to $3.8 billion on January 2, 2019 

  5. Slide 5: Political Deposits Trend

    POLITICAL DEPOSITS Political Deposits Trend ($ in millions) $416.4 $397.8 $321.4 $89 million increase QoQ $271.0 $241.8 $181.9 $23 million increase QoQ $156.5 $124.1 $84.8 $62.0 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 5

  6. Slide 6: Loan Portfolio

    LOAN PORTFOLIO Total Loans, Net ($ in millions) 1Q19 Highlights $3,267 Total Loans Yield Yield - Adj. $3,211 $3,165  Total loans increased $56.4 million, or 7.0% annualized compared to 4Q18 $3,087  Since the NRB acquisition, growth in 4.44% mission-oriented lending is approximately 4.42% $256.3 mi

  7. Slide 7: Indirect C&I Portfolio

    INDIRECT C&I Portfolio Leverage Loans - March 31, 2019 Balance Exposure Reserves Number of loans Reserves (%) Status - 4/29/2019 ($MM) ($MM) ($MM) 3 $ 34.8 $ 38.1 $ 0.4 1.2% Sold/Paid-off 5 31.3 44.5 0.4 1.3% Performing 2 10.8 11.5 3.5 32.7% Substandard 2 24.4 25.6 3.0 12.2% Substandard - Unitranche

  8. Slide 8: Cash and Investment Securities

    CASH AND INVESTMENT SECURITIES Securities 1Q19 Highlights ($ in millions) $1,256 $1,172 $1,193  Cash and Investment Securities totaled $1,139 $1.3 billion for 1Q19 versus $1.2 billion in $997 4Q18 $600.7 $637.5  Increase of $63 million from 4Q18 was $615.3 $604.3 primarily due to purchases of ABS

  9. Slide 9: Net Interest Income and Margin

    NET INTEREST INCOME AND MARGIN Net Interest Income & Margin ($ in millions) 1Q19 Highlights  Net interest income was $40.8 million, an $40.2 $40.8 increase of 1.4% compared to $40.2 million $40.0 in 4Q18 $36.7 $32.8  Up 24.3% compared to $32.8 in 1Q18 3.65% 3.65% 3.64% 1Q19 vs.1Q18 changes due to:

  10. Slide 10: Non-Interest Expense and Efficiency

    NON-INTEREST EXPENSE AND EFFICIENCY Non-Interest Expense 1Q19 Highlights ($ in millions) $34.1 $35.0  Core efficiency ratio of 65% for 1Q191 $33.3 $31.3 $31.4 $30.5 $29.8 $30.1 $28.5 $28.8  Core non-interest expense for the 1Q19 was $31.3 million, a $2.0 million decrease from 4Q18 and $2.8 million

  11. Slide 11: Capital

    CAPITAL Tier 1 Leverage Ratio 1Q19 Highlights 8.94% 8.88% 8.90%  Regulatory capital ratios remain well capitalized 8.60% 8.59%  Tier 1 leverage of 8.90% as of 1Q19, up 2 bps compared to the linked quarter  Total Risk Based Capital of 14.33%, 1Q18 2Q18 3Q18 4Q18 1Q19 down 13 bps compared to the li

  12. Slide 12: Credit Quality Portfolio

    CREDIT QUALITY PORTFOLIO NPAs/ Total Assets 1Q19 Highlights 1.35% 1.27% 1.25%  Nonperforming assets were $56.6 million as of 1Q19, compared to 1.13% 1.15% $59.3 in 4Q18  Net Charge-offs to average loans of 1Q18 2Q18 3Q18 4Q18 1Q19 1.0% during the quarter versus 0.01% in the linked quarter, and (0.

  13. Slide 13: Allowance for Loan Losses

    ALLOWANCE FOR LOAN LOSSES Allowance for Loan Losses 1Q19 Highlights ($ in millions)  Allowance for loan losses totaled $31.4 million  Down $5.8 million compared to $ 37.4 $ 37.2 4Q18, primarily due to $8.4 $ 36.4 million in C&I charge-off $ 35.4  0.95% of total loans compared to 1.15% in 4Q18 $ 3

  14. Slide 14: ROATCE & Core ROATCE

    ROATCE & CORE ROATCE ROATCE 15.66% 12.82% 13.08% 12.17% 10.31% 10.18% 9.46% 9.47% 9.50% 9.14% 1Q18 2Q18 3Q18 4Q18 1Q19 ROATCE CORE ROATCE  Core ROATCE of 10.18% compared to 9.50% at 4Q18 and 9.46% at 1Q18 14

  15. Slide 15: Appendix

    Appendix

  16. Slide 16: Reconciliation of Non-GAAP Financials

    Reconciliation of Non-GAAP Financials For the Three Months Ended (in thousands) March 31, December 31, March 31, 2019 2018 2018 Core operating revenue Net interest income (GAAP) $ 40,773 $ 40,205 $ 32,801 Non interest income (GAAP) 7,417 7,555 7,015 x Less: Securities loss, net and OTTI (293) 129 10

  17. Slide 17: Reconciliation of Non-GAAP Financials

    Reconciliation of Non-GAAP Financials For the Three Months Ended (in thousands) March 31, December 31, March 31, 2019 2018 2018 Tangible common equity Stockholders Equity (GAAP) $ 455,480 $ 439,371 $ 346,586 Less: M inority Interest (GAAP) (134) (134) (134) Less: Preferred Stock (GAAP) - - (6,700) L

  18. Slide 18: A Best in Class IPO

    A Best in Class IPO September 27, 2017

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