Amalgamated Financial Corp. · NASDAQ:AMAL
Amalgamated Financial — Q1 2024 Earnings Presentation
29 slides from Amalgamated Financial's earnings presentation, Apr 25, 2024
Slide 1: First Quarter 2024 Earnings Presentation
Amalgamated Financial Corp. First Quarter 2024 Earnings Presentation April 25, 2024 1
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: 1Q24 Highlights
1Q24 Highlights 1.1% 5.5% 16.1% 4Q23 1Q24 4Q23 1Q24 4Q23 1Q24 Core Net Income1,2 Deposit Growth3 Net Interest Income $25.6mm $373.8mm $68.0mm 15.6% 2.7% 5 bps 4Q23 1Q24 4Q23 1Q24 4Q23 1Q24 Core EPS1,2 Leverage Ratio Net Interest Margin $0.83 8.29% 3.49% 3 1 GAAP Net Income and GAAP EPS for 1Q24 are
Slide 4: Performance Tracking
Performance Tracking TBV PER-SHARE ($) CORE ROAE CAPITAL RATIOS 13.68% 12.51% 12.63% 12.98% 19.73 12.23% 18.6% 18.74 17.2% 17.14% 8.29% 17.43 16.8% 7.78% 7.89% 8.07% 7.50% 16.78 16.42 15.8% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Leverage Ratio CET1 PER-SHARE KPI'S
Slide 5: Deposit Portfolio
Deposit Portfolio TOTAL DEPOSITS3 TOTAL CORE DEPOSITS2 BY IMPACT SEGMENT ($bn) 7.3 7.4 ($bn) 7.0 6.9 7.0 7.0 0.66 CML - Labor 0.7 0.8 1.0 1.0 1.3 1.2 0.6 0.2 0.40 1.87 0.5 0.4 0.2 0.2 CML- Social/Philanthropy 0.81 CML - Political 5.7 5.6 5.6 5.8 5.8 6.0 $7.3bn CML - NFP Consumer 1.06 1.31 CML - Clim
Slide 6: Investment Securities
Investment Securities SECURITIES – BOOK VALUE1,2,3 SECURITIES – YIELDS2 ($bn) ($bn) 3.4 3.4 3.3 3.3 3.3 0.8 0.8 0.8 0.8 0.7 5.75% 5.58% 5.44% 5.31% 5.07% 5.57% 1.0 1.1 1.1 1.1 5.43% 1.1 5.27% 5.20% 5.07% 1.6 1.5 1.4 1.4 1.4 3.36% 3.20% 3.12% 3.12% 3.22% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1
Slide 7: Investment Securities Composition
Investment Securities Composition AFS PORTFOLIO COMPOSITION1,2,3 VALUATION LOSS AS A % OF PORTFOLIO BALANCE2,3 ($mm) AFS: 144 504 8.1% $1,540mm 7.6% 6.6% 6.7% 6.1% 892 1Q23 2Q23 3Q23 4Q23 1Q24 HTM PORTFOLIO COMPOSITION1,2,3 HTM: ($mm) 18 11.0% 10.6% 241 7.5% 7.2% 7.2% $616mm 357 1Q23 2Q23 3Q23 4Q23
Slide 8: Loans Held for Investment
Loans Held for Investment TOTAL LOANS LOAN COMPOSITION ($bn) ($bn) 0.03 0.02 0.02 4.41 4.42 0.04 0.03 4.36 0.3 0.4 0.4 4.25 0.3 0.3 4.20 0.5 0.4 0.4 4.76% 0.5 0.5 4.68% 4.56% 4.40% 1.0 1.0 4.33% 0.9 1.1 0.9 1Q23 2Q23 3Q23 4Q23 1Q24 Loan Yield 1.1 1.1 1.1 1.1 1.2 1,2,3 MISSION-ALIGNED LOAN COMPOSITIO
Slide 9: Real Estate Portfolio Composition
Real Estate Portfolio Composition MULTIFAMILY COMPOSITION BY RENT STABILIZATION CRE COMPOSITION BY PROPERTY TYPE Weighted Weighted Weighted Weighted Category Category Avg. LTV Avg. DSCR2 Avg. LTV Avg. DSCR2 Pre 1974 RS1 56.6% 1.54 11.8% Office 42.1% 1.65 22.9% 17.3% Office - Owner 35.7% Section 8 59
Slide 10: Real Estate Portfolio By Maturity
Real Estate Portfolio By Maturity MULTIFAMILY PORTFOLIO MATURITY TIMELINE CRE PORTFOLIO MATURITY TIMELINE ($mm) LTV DSCR 1 ($mm) LTV DSCR1 2024 $114 58.8% 1.33 2024 $60 44.2% 1.53 2025 $116 49.8% 1.75 2025 $109 44.1% 1.79 2026 $127 52.5% 1.36 2026 $16 41.5% 1.38 2027 $264 60.0% 1.45 2027 $10 47.6% 1
Slide 11: Selected Real Estate Risk Exposure Profile
Selected Real Estate Risk Exposure Profile MULTIFAMILY GEOGRAPHIC DISTRIBUTION PRE-1974 RS1 AND OFFICE-ONLY LOAN DISTRIBUTION BY COUNTY ($mm) ($mm) 9.2% 10.0% 2.7% NY 2.0% Manhattan, NY 4.3% DC 9.3% Brooklyn (Kings), NY 13.7% $1,175mm CA $330mm 41.3% Queens, NY MA Ocean, NJ 70.1% 37.4% Other Other,
Slide 12: Mission-Aligned Loan Portfolio
Mission-Aligned Loan Portfolio MULTIFAMILY LOANS BY IMPACT SEGMENT1 C&I LOANS BY IMPACT SEGMENT1 ($mm) ($mm) 11 1 C&I Climate 88 Protection Detail 256 Solar: $388mm Alternative Energy: 12 537 $93mm 51 Other: 148 $56mm 1,086 CRE AND LAND LOANS BY IMPACT SEGMENT1 CONSUMER AND OTHER LOANS BY IMPACT SEG
Slide 13: Net Interest Income & Margin
Net Interest Income & Margin NET INTEREST INCOME & MARGIN1 ($mm) 67.3 67.3 68.0 63.0 63.7 NIM 5 bps 3.59% 3.49% 3.44% 3.33% 3.29% 1Q23 2Q23 3Q23 4Q23 1Q24 Net Interest Margin 1 The calculated NIM figures here exclude Allowance for Credit Loss from total interest earning assets across all quarters 13
Slide 14: Non-Interest Income and Expense
Non-Interest Income and Expense CORE NON-INTEREST INCOME1,2 ($mm) 8.2 8.5 8.3 7.5 7.8 2.7 3.1 3.2 2.5 2.7 Retail banking Trust fee income 4.0 3.6 Core other income 3.9 3.7 3.9 1.5 1.4 1.8 1.2 1.1 1Q23 2Q23 3Q23 4Q23 1Q24 NON-INTEREST EXPENSE1 ($mm) 38.6 38.6 37.2 37.5 37.3 37.7 37.8 38.5 38.2 37.0 C
Slide 15: Credit Quality
Credit Quality NPA / TOTAL ASSETS 1Q24 HIGHLIGHTS2 • Net charge-offs of 0.20% in 1Q24 compared 0.49% 0.45% 0.46% 0.43% to net charge offs of 0.51% in 4Q23 due to a 0.42% $4.7 million charge-off on one construction loan in 4Q23 • Pass rated loans are 98% of loan portfolio 1Q23 2Q23 3Q23 4Q23 1Q24 QUA
Slide 16: Allowance for Credit Losses on Loans
Allowance for Credit Losses on Loans ALLOWANCE WATERFALL ACL COVERAGE RATIO BY LOAN TYPE ($mm) 6.72% 6.36% 2.2 3.67% 65.7 1.6 3.4 64.4 1.58% 0.87% 0.38% 0.40% (2.2) C&I Multifamily CRE Land Residential Consumer Consumer (0.7) Solar and Other (5.6) ALLOWANCE FOR CREDIT LOSSES ON LOANS / TOTAL LOANS 1
Slide 17: 2024 Guidance
2024 Guidance 2024 FINANCIAL OUTLOOK - REVISED • Core pre-tax pre-provision earnings from $143 million to $148 million to: ◦ $145 million to $149 million • Net Interest Income from $268 million to $272 million to: ◦ $270 million to $274 million - considers the effect of the forward rate curve throug
Slide 18: Appendix
Appendix
Slide 19: Trends
Trends KEY FINANCIAL TRENDS THROUGH 1Q24 ($bn) Loans + PACE Ending Deposits + Brokered CDs > 10.9% CAGR1 > 10.1% CAGR1 5.5 5.5 5.0 7.5% 7.1 7.0 7.3 9.4% 1.1 1.1 6.4 6.6 CAGR1 CAGR1 3.9 3.9 0.9 (Loans) 5.3 0.1 0.2 0.2 (excl. Brokered CD) 4.3 4.4 0.4 0.6 4.1 3.4 6.4 6.5 6.8 7.1 3.3 5.3 2020 2021 2022
Slide 20: Solar Tax-Equity Investments
Solar Tax-Equity Investments OVERVIEW OF SOLAR TAX EQUITY INVESTMENTS • Metrics excluding the impact of tax credits or accelerated depreciation is a meaningful way to evaluate our performance and are adjusted in accordance with the below chart ◦ Immediate realization of tax benefits and subsequent a
Slide 21: Reconciliation of Core Deposits
Reconciliation of Core Deposits Total Core Deposits1, $mm 3/31/2024 Core Political Deposits1, $mm 3/31/2024 Total Deposits (GAAP) 7,305.8 Political Deposits (GAAP) 1,320.7 Less: Brokered CD (162.2) Add: Political Deposits held off-balance sheet 117.0 Total Deposits, excl. Brokered CD's 7,143.6 Total
Slide 22: Super-Core Deposits
Super-Core Deposits SUPER-CORE DEPOSITS2 BY IMPACT SEGMENT 1Q24 HIGHLIGHTS ($bn) • Super-core deposits2 make up $4.0 billion, or 54% of total core deposits Weighted Avg. Impact Sector Total Balance % of Total Account Duration ◦ Super-core deposits are minimum Core Deposits 5-years old & concentrated
Slide 23: Tangible Book Value
Tangible Book Value TANGIBLE COMMON EQUITY & TANGIBLE BOOK VALUE 1Q24 SUMMARY ($mm) • TBV increase of 5.3% primarily driven by: 7 602 ◦ $27.2 million in net income 27 ◦ $7.1 million improvement in the tax-affected mark-to- — 1 market adjustment (3) (0.2) • No accretive affect to TBV from share repur
Slide 24: Metrics Index
Metrics Index DEPOSITS LOANS & CREDIT QUALITY Change Change Metric 1Q24 4Q23 Metric 1Q24 4Q23 QoQ QoQ Total Deposits ex Brokered ($bn) 7.14 6.77 0.37 Total Mission-Aligned Loans ($bn) 2.39 2.38 0.01 Political Deposits ($mm) 1,438 1,187 251 Pass-Rated Loans as a % of Loan Portfolio 97.7% 97.5% 0.2% P
Slide 25: Metrics Index
Metrics Index SECURITIES Change Change Metric 1Q24 4Q23 Metric 1Q24 4Q23 QoQ QoQ Total Investment Securities Book Value1 ($bn) 3.3 3.3 — Valuation Loss ($mm) 2 Agency Securities as % of Total Portfolio 22.6% 23.5% (0.9)% AFS - total 93.1 102.3 (9.2) PACE LTV 12.0% 12.0% —% AFS - ex-PACE 94.1 102.7 (
Slide 26: Impact Segment Definitions
Impact Segment Definitions LOAN TYPES INCLUDED WITHIN EACH IMPACT SEGMENT Climate Protection Community Empowerment Health & Wellness • Renewable Energy • Non-Profits • Medical Facilities • Energy Efficiency • CDFI's • Rehabilitation Centers • Energy Storage • Labor Unions • Senior Care • Political O
Slide 27: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials As of and for the Three Months Ended (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Core operating revenue Net Interest income (GAAP) $ 68,037 $ 67,319 $ 67,280 Non-interest income 10,229 9,406 5,208 Less: Securities (gain) loss 2,774 2,340 3,086
Slide 28: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials As of and for the Three Months Ended (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Tangible common equity Stockholders' equity (GAAP) $ 616,938 $ 585,364 $ 519,158 Less: Minority interest (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,93
Slide 29: Thank You
Thank You amalgamatedbank.com Member FDIC
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