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
amalgamatedbank.com Member FDIC Amalgamated Financial Corp. First Quarter 2022 Earnings Presentation April 28, 2022
Slide 2: Safe Harbor Statements
2 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 other
Slide 3: Safe Harbor Statements cont.
3 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 N
Slide 4: 1Q22 Highlights
1Q22 Highlights 4 (1) See non-GAAP reconciliations on pages 22-23 (2) Pre-tax, pre-provision income is defined as pre-tax income adjusted by provision (recovery) for loan losses INCOME STATEMENT • GAAP net income of $0.45 per diluted share • Core net income excluding the tax credit or accelerated de
Slide 5: Solar Tax-Equity Investments
Solar Tax-Equity Investments OVERVIEW OF SOLAR TAX-EQUITY INVESTMENTS • Immediate realization of tax benefits and subsequent accelerated depreciation of the value of the investment creates volatility in the GAAP and core earnings presentations • Metrics excluding the impact of tax credits or acceler
Slide 6: Trends
Trends 6 KEY FINANCIAL TRENDS THROUGH 1Q22 ($ in millions) (1) Compounded Annual Growth Rate (“CAGR”) (2) See solar tax investment slide 5 for components of income exclusions (3) Mar YTD 2022 earnings are annualized (4) GAAP Pre-tax, pre-provision income was $86.8 million annualized in 2022, $70.4 m
Slide 7: Deposit Portfolio
Deposit Portfolio 7 TOTAL DEPOSITS ($ in billions) 1Q22 HIGHLIGHTS • Total ending deposits increased $617.2 million compared to 4Q21 due to momentum in political deposits related to upcoming elections, new relationships in core markets, and consumer deposits ◦ Political growth of $159.9 million ◦ Co
Slide 8: Political Deposits Historical Trend
8 HISTORICAL TREND ($ in millions) Political Deposits $271 $419 $511 $579 $775 $1,101 $1,212 $603 $692 $791 $1,015 $990 $1,149 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22
Slide 9: Interest Earning Assets
Interest Earning Assets 9 INTEREST EARNING ASSETS OF $7.4B AS OF MARCH 31, 2022 We maintain a diverse, low risk profile of interest earning assets Multifamily & Commercial Real Estate $1.2 B • No fossil fuel exposure • $254mm of government guaranteed loans • $341mm residential solar loans with stron
Slide 10: Loans and Held-to-Maturity Securities
Loans and Held-to-Maturity Securities 10 TOTAL LOANS ($ in millions) HELD-TO-MATURITY SECURITIES ($ in millions) • Total loans increased $158.0 million, or 4.8%, compared to 4Q21 due to new loan originations during the quarter, partially offset by loan payoffs • 1Q22 yield of 3.85%, a decrease of 16
Slide 11: Investment Securities
Investment Securities 11 SECURITIES – BOOK VALUE(1) ($ millions) (1) Securities book value excludes unrealized Available for Sale (AFS) gain / loss on sale (2) MBS/ABS does not include PACE assessments • Investment Securities totaled $3.4 billion book value for 1Q22 • Securities increased $410.4 mil
Slide 12: Net Interest Income and Margin
Net Interest Income and Margin 12 NET INTEREST INCOME & MARGIN ($ millions) • Net interest income was $48.4 million, compared to $47.1 million in 4Q21 • 1Q22 NIM at 2.76%; a decrease of 1 bps and 9 bps, compared to 4Q21 and 1Q21, respectively • NIM was negatively impacted by approximately 13 bps due
Slide 13: Non-Interest Expense and Efficiency
Non-Interest Expense and Efficiency 13 NON-INTEREST EXPENSE ($ millions) • Efficiency ratio of 61.7% for 1Q22 • Core efficiency ratio excluding the tax credit or accelerated depreciation impact of our solar tax equity investments of 61.1% for 1Q22(1) • Non-interest expense for 1Q22 was $34.4 million
Slide 14: Non-Interest Income
Non-Interest Income 14 NON-INTEREST INCOME ($ millions) • Our trust business held $39.7 billion in assets under custody and $15.1 billion in assets under management, compared to $40.2 billion and $17.3 billion, respectively, in the preceding quarter; this decline was primarily driven by a decrease i
Slide 15: Allowance for Loan Losses
Allowance for Loan Losses 15 ALLOWANCE FOR LOAN LOSSES / TOTAL LOANS ALLOWANCE FOR LOAN LOSSES (ALLL) CHANGE FROM 1Q21 TO 1Q22 ($ millions) • Allowance for loan losses totals $37.5 million as of 1Q22, or $1.6 million higher compared to 4Q21 primarily due to higher loan balances offset by improved lo
Slide 16: Credit Quality Portfolio
Credit Quality Portfolio 16 NPA / TOTAL ASSETS NCO / AVERAGE LOANS(1) (Quarter trend) 1Q22 HIGHLIGHTS • Nonperforming assets were $61.1 million as of 1Q22, compared to $54.6 million in 4Q21 • Net charge-offs of 0.08% in 1Q22 was 36 bps lower than 4Q21 due to increased charge-off activity in the prio
Slide 17: Returns
Returns 17 (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%, 11.2% and 10.3% for 1Q21, 2Q21, 3Q21, 4Q21 and 1Q22, respectively (3) ROATCE was 9.4%, 7.9%, 10.6%, 11.6% and 10.6% for 1Q21, 2Q21, 3Q21, 4Q21 and 1Q22, respectiv
Slide 18: Capital
Capital 18 TIER 1 LEVERAGE RATIO COMMON EQUITY TIER 1 RATIO • Regulatory capital ratios remained strong ◦ Consolidated Tier 1 leverage ratio of 7.34% as of 1Q22 ◦ Excluding the excess liquidity(1), tier 1 leverage ratio would be 7.84% ◦ Bank Tier 1 leverage ratio of 7.99% as of 1Q22 ◦ Common Equity
Slide 19: Tangible Book Value
Tangible Book Value 547 14 (2) (3) 1 (46) 51017.56 18.02 17.94 17.85 17.94 17.94 16.45 16.45 12/31/21 Earnings Dividends @ $.08/share Buybacks - APIC Buybacks - Share count Other(1) AFS Mark 3/31/22 TANGIBLE COMMON EQUITY & TANGIBLE BOOK VALUE ($ millions) 1Q22 Summary • TBV decline primarily driven
Slide 20: 2022 Guidance
2022 Guidance 20 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 - $19
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials 22 As of and for the Three Months Ended (in thousands) March 31, 2022 December 31, 2021 March 31, 2021 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)
Slide 23: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials 23 As of and for the Three Months Ended (in thousands) March 31, 2022 December 31, 2021 March 31, 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
Slide 24: Thank You
Thank You amalgamatedbank.com Member FDIC
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