Amalgamated Financial Corp. · NASDAQ:AMAL
Amalgamated Financial — Q2 2019 Earnings Presentation
20 slides from Amalgamated Financial's earnings presentation, Jul 29, 2019
Slide 1: Second Quarter 2019 Earnings Presentation
AMALGAMATED BANK Second Quarter 2019 Earnings Presentation July 29, 2019 amalgamatedbank.com Member FDIC
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
Slide 3: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS 2Q19 Highlights Earnings of $0.35 per diluted share Core Earnings of $0.36 per diluted share Average deposit growth of $190.4 million, or 19.4% annualized compared to1Q19 Non-interest bearing deposits are 46.1% of ending deposits 34 bps cost of deposits; 31 bps ex
Slide 4: Deposit Portfolio
DEPOSIT PORTFOLIO Total Deposits 2Q19 Highlights ($ in millions) Total ending deposits increased $29.4 $4,136 million, or 2.9% annualized, compared $4,105 $4,107 $4,107 $4,033 to 1Q19 $4,010 $3,962 $3,953 $3,916 Total average deposits increased $190.4 million, or 19.4% annualized, compared to 1Q
Slide 5: Political Deposits
POLITICAL DEPOSITS Political Deposits Historical Trend ($ in millions) $456.2 $416.4 $419.4 $397.8 $321.4 $271.0 $241.8 $181.9 $156.5 $124.1 $84.8 $62.0 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 25-Jul 5
Slide 6: Loan Portfolio
LOAN PORTFOLIO Total Loans, Net 2Q19 Highlights ($ in millions) Total loans increased $23.9 million, or Total Loans Yield 2.9% annualized compared to 1Q19 $3,267 $3,291 $3,165 $3,211 $3,087 Since the NRB acquisition, growth in mission-oriented lending is approximately $340.7 million ($84.4 milli
Slide 7: Indirect C&I Portfolio
INDIRECT C&I PORTFOLIO Leverage Loans ‐ June 30, 2019 Balance Exposure Reserves Reserves Number of loans Status ‐ 6/30/2019 ($MM) ($MM) ($MM) (%) 4 21.8 34.8 0.3 1.3% Performing $8.6 Million pay 1 6.1 6.1 0.1 1.8% 1 upgrade to Special Mention down in July 2019 2 13.3 14.2 4.1 30.6% 1 downgrade to Su
Slide 8: New York Multifamily Portfolio
NEW YORK MULTIFAMILY PORTFOLIO Summary of Regulations Portfolio Repeals Vacancy Bonus Increases. Prohibits Approximately $750 million or 85% of our Rent Guidelines Board (RGB) from setting portfolio is in New York City Multifamily vacancy bonus rent increases. Prohibits RGB from setting longevit
Slide 9: Cash and Investment Securities
CASH AND INVESTMENT SECURITIES Securities ($ in millions) 2Q19 Highlights $1,299 $1,256 $1,139 $1,172 $1,193 Cash and Investment Securities totaled $1.3 billion for 2Q19 versus $1.3 billion in $997 1Q19 $685.0 $600.7 $637.5 Increase of $55 million from 1Q19 was $615.3 $604.3 3.37% 3.34% primaril
Slide 10: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Margin ($ in millions) 2Q19 Highlights $41.9 Net interest income was $41.9 million, an $40.0 $40.2 $40.8 increase of 2.7% compared to $40.8 million in $36.7 1Q19 and 14.1% compared to $36.7 in 2Q18 2Q19 vs. 2Q18 changes due to: 3.66% 3.65% Inc
Slide 11: Non-Interest Expense and Efficiency
NON-INTEREST EXPENSE AND EFFICIENCY Non-Interest Expense ($ in millions) 2Q19 Highlights $34.1 $35.0 Core efficiency ratio of 63.50% for 2Q19(1) $33.3 $31.4 $31.0 $30.1 $31.3 $30.8 $30.5 $29.8 Non-interest expense for the 2Q19 was $31.0 million, $0.4 million decrease from 1Q19 Core non-interes
Slide 12: Capital
CAPITAL Tier 1 Leverage Ratio 9.04% 2Q19 Highlights 8.94% 8.88% 8.90% Regulatory capital ratios remain well capitalized 8.59% Tier 1 leverage of 9.04% as of 2Q19, up 14 bps compared to 1Q19 2Q18 3Q18 4Q18 1Q19 2Q19 Total Risk Based Capital of 14.67%, up 34 bps compared to 1Q19 Total Risk Based
Slide 13: Credit Quality Portfolio
CREDIT QUALITY PORTFOLIO NPAs/ Total Assets 2Q19 Highlights 1.50% 1.25% 1.27% 1.13% 1.15% Nonperforming assets were $73.9 million as of 2Q19, compared to $56.6 million in 1Q19 2Q18 3Q18 4Q18 1Q19 2Q19 $17.4 million increase was due to $6.8 million increase in loan 90 days past due and accruing a
Slide 14: Allowance for Loan Losses
ALLOWANCE FOR LOAN LOSSES Allowance for Loan Losses 2Q19 Highlights ($ in millions) Allowance for loan losses totaled $33.6 million Increased $2.2 million compared to 1Q19 primarily due to: $ 37.2 $ 36.4 (i) increase in criticized and classified loans in the $ 35.4 indirect C&I portfolio $33.6 (
Slide 15: ROAE & Core ROATCE
ROAE & CORE ROATCE 14.88% 13.08% 12.31% 12.17% 10.18% 10.45% 9.82% 9.65% 9.50% 8.96% 2Q18 3Q18 4Q18 1Q19 2Q19 ROAE CORE ROATCE Core ROATCE of 10.45% compared to 10.18% at 1Q19 and 13.08% at 2Q18 15
Slide 16: FY 2019 Outlook
FY 2019 OUTLOOK Outlook Pre-tax pre-provision earnings of $66 to $72 million Assumes: Deposit growth of 10 - 14%, off an adjusted base of $3.8 billion Loan growth of 6 - 10%, including purchases Net interest margin of 3.55% - 3.65% (includes one 25 bps rate cut in July) Expense of $31 -
Slide 17: Appendix
Appendix amalgamatedbank.com Member FDIC
Slide 18: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials For the Three For the Six Months Ended Months Ended (in thousands) June 30, March 31, June 30, June 30, 2019 2019 2018 2019 2018 Core operating revenue Net interest income (GAAP) $ 41,856 $ 40,773 $ 36,695 $ 82,629 x $ 69,497 Non interest income (GAAP) 6,349 7,4
Slide 19: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials For the Three For the Six Months Ended Months Ended (in thousands) June 30, March 31, June 30, June 30, 2019 2019 2018 2019 2018 Average tangible common equity Average Stockholders Equity (GAAP) $ 464,902 $ 446,464 $ 377,855 $ 455,734 $ 362,476 Less: M inority I
Slide 20: Thank You
Thank You amalgamatedbank.com
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