Amalgamated Financial Corp. · NASDAQ:AMAL
Amalgamated Financial — Q1 2025 Earnings Presentation
32 slides from Amalgamated Financial's earnings presentation, Apr 24, 2025
Slide 1: First Quarter 2025 Earnings Presentation
Amalgamated Financial Corp. First Quarter 2025 Earnings Presentation April 24, 2025 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: 1Q25 Highlights - Results as Expected
1Q25 Highlights - Results as Expected (3.4)% (3.0)% 3.2% 4Q24 1Q25 4Q24 1Q25 4Q24 1Q25 Core Net Income1,2 Deposit Growth3 Net Interest Income $27.1mm $231.5mm $70.6mm (2.2)% 2.4% 4 bps 4Q24 1Q25 4Q24 1Q25 4Q24 1Q25 Core EPS1,2 Leverage Ratio Net Interest Margin $0.88 9.22% 3.55% 3 1 GAAP Net Income
Slide 4: Performance Tracking
Performance Tracking TBV PER-SHARE ($) CORE ROAE CAPITAL RATIOS 23.51 13.82% 13.90% 14.27% 13.68% 13.48% 22.29 22.60 17.14% 16.93% 20.61 16.66% 19.73 9.00% 9.22% 15.80% 8.29% 8.42% 8.63% 15.23% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Leverage Ratio CET1 PER-SHARE K
Slide 5: Deposit Portfolio
Deposit Portfolio TOTAL GAAP DEPOSITS1 TOTAL CORE DEPOSITS2 BY IMPACT SEGMENT ($bn) 7.6 7.7 ($bn) 7.3 7.4 7.2 7.4 0.58 1.1 CML - Labor 1.3 1.5 1.0 1.1 0.42 1.3 — 0.1 — — 2.20 CML- Social/Philanthropy 0.2 0.2 0.81 CML - Political 6.6 $7.6bn CML - Not-for-Profit 5.8 5.9 6.0 6.2 6.3 Consumer 1.37 1.12
Slide 6: Not-for-Profit Deposits
Not-for-Profit Deposits TOTAL NOT-FOR-PROFIT DEPOSITS NOT-FOR-PROFIT CUSTOMERS ($bn) • Tax exempt (501c3) institutions intended to provide a service to their members and serve the 1.37 mission of their specific organization 1.30 1.27 1.26 • Includes advocacy organizations, social service providers,
Slide 7: Investment Securities
Investment Securities SECURITIES – BOOK VALUE1,2,3 SECURITIES – YIELDS2 ($bn) ($bn) 3.4 3.4 3.3 3.3 3.3 0.9 0.9 0.7 0.8 0.8 5.82% 5.58% 5.69% 5.61% 5.57% 1.2 5.57% 5.52% 5.53% 1.1 1.2 1.2 1.2 5.39% 5.26% 3.55% 3.51% 3.45% 3.36% 3.39% 1.4 1.4 1.4 1.3 1.3 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1
Slide 8: Investment Securities Composition
Investment Securities Composition AFS PORTFOLIO COMPOSITION1,2,3 VALUATION LOSS AS A % OF PORTFOLIO BALANCE2,3 ($mm) AFS: 104 551 $1,603mm 6.1% 5.2% 4.5% 948 3.5% 3.5% 1Q24 2Q24 3Q24 4Q24 1Q25 HTM PORTFOLIO COMPOSITION1,2,3 HTM: ($mm) 18 7.9% 7.2% 7.1% 7.2% 234 $535mm 5.0% 284 1Q24 2Q24 3Q24 4Q24 1Q
Slide 9: Loans Held for Investment
Loans Held for Investment TOTAL LOANS LOAN COMPOSITION ($bn) ($bn) 4.67 4.68 4.55 0.4 0.4 4.47 0.4 0.4 0.4 4.42 5.00% 5.00% 0.4 0.4 4.76% 4.79% 0.4 0.4 0.4 4.68% 1.1 1.2 1.2 1.0 1.0 1Q24 2Q24 3Q24 4Q24 1Q25 Loan Yield MISSION-ALIGNED LOAN COMPOSITION1,2,3 1.2 1.2 1.3 1.4 1.4 (%) 13% 8% 18% 65% 1.4 1
Slide 10: Not-for-Profit Loan Composition - 501(c)(3)
Not-for-Profit Loan Composition - 501(c)(3) TOTAL NOT-FOR-PROFIT LOANS NOT-FOR-PROFIT LOAN DELINQUENCY SNAPSHOT ($mm) Current Balance: $ % of NFP Portfolio 0.2% Total NFP Loan Balance 131.0 100.0% Non-Performing 0.7 0.5% 4.7% Criticized/Classified 4.9 3.7% 33.8% 30-89 DPD — —% Housing Net Charge-Off
Slide 11: Net Interest Income & Margin
Net Interest Income & Margin NET INTEREST INCOME & MARGIN ($mm) 72.1 73.1 69.2 70.6 NIM 68.0 4 bps 3.59% 3.55% 3.49% 3.51% 3.46% 1Q24 2Q24 3Q24 4Q24 1Q25 Net Interest Margin 11
Slide 12: Non-Interest Income and Expense
Non-Interest Income and Expense CORE NON-INTEREST INCOME1,2 ($mm) 9.5 9.1 8.5 8.8 8.3 4.0 3.4 3.2 3.8 4.0 Retail banking Trust fee income 4.0 4.2 Core other income 3.9 3.7 3.7 1.2 1.1 1.1 1.5 1.5 1Q24 2Q24 3Q24 4Q24 1Q25 NON-INTEREST EXPENSE1 ($mm) 40.7 41.0 41.1 41.1 41.5 41.6 38.5 38.2 39.5 39.5 5
Slide 13: Credit Quality
Credit Quality NON-PERFORMING ASSETS / TOTAL ASSETS 1Q25 HIGHLIGHTS2 • Net charge-offs of 0.22% include: 0.43% ◦ $0.8 million in charge-offs on small 0.42% 0.41% business commercial & industrial loans 0.34% 0.31% ◦ $1.7 million in charge-offs on consumer solar loans • One $8.3 million commercial & i
Slide 14: Allowance for Credit Losses on Loans
Allowance for Credit Losses on Loans ALLOWANCE WATERFALL ACL COVERAGE RATIO BY LOAN TYPE ($mm) 7.01% 6.05% 5.67% 2.6 60.1 1.29% 0.39% 0.73% 0.23% 1.8 C&I Multifamily CRE Land Residential Consumer Consumer 1.0 57.7 Solar and Other (2.6) ALLOWANCE FOR CREDIT LOSSES ON (4.0) LOANS / TOTAL LOANS (1.2) 1
Slide 15: 2025 Guidance
2025 Guidance INTEREST REVENUE AND EARNINGS OUTLOOK - UNCHANGED FROM Q1 2025 • Net Interest Income of $293 million to $297 million. • Core pre-tax pre-provision earnings of $159 million to $163 million. PERFORMANCE TARGETS • YE Balance Sheet growth ~ 3% • 9.0% Tier 1 leverage baseline • 52% core eff
Slide 16: Appendix
Appendix
Slide 17: Trends
Trends KEY FINANCIAL TRENDS THROUGH 1Q25 ($bn) Loans + PACE Ending Deposits + Brokered CDs > 12.1% CAGR1 > 4.8% CAGR1 5.8 5.8 5.5 5.0 11.2% 7.0 7.2 7.4 1.2 1.2 6.4 6.6 1.1 CAGR1 — — 3.9 .9 4.6 4.6 (Loans) — .1 .2 4.3 .6 4.1 6.8 7.2 7.4 3.3 6.4 6.5 2021 2022 2023 2024 1Q25 2021 2022 2023 2024 1Q25 Co
Slide 18: 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 19: Reconciliation of Core Deposits
Reconciliation of Core Deposits Total Core Deposits1, $mm 3/31/2025 Core Political Deposits1, $mm 3/31/2025 Total Deposits (GAAP) 7,412.0 Political Deposits (GAAP) 1,060.2 Less: Brokered CDs — Add: Political Deposits held off-balance sheet 12.1 Total Deposits, excl. Brokered CDs 7,412.0 Core Politic
Slide 20: Super-Core Deposits
Super-Core Deposits SUPER-CORE DEPOSITS2 BY IMPACT SEGMENT 1Q25 HIGHLIGHTS ($bn) • Super-core deposits2 make up $4.0 billion, or 53% of total core deposits Weighted Avg. Impact Sector Total Balance % of Total Account Duration ◦ Super-core deposits are minimum ($M) Core Deposits 5-years old & concent
Slide 21: Real Estate Portfolio Composition
Real Estate Portfolio Composition MULTIFAMILY COMPOSITION BY RENT STABILIZATION1 CRE COMPOSITION BY PROPERTY TYPE1 Weighted Weighted Weighted Weighted Category Category Avg. LTV Avg. DSCR3 Avg. LTV Avg. DSCR3 Pre 1974 RS2 53.2% 1.51 13.8% Office-Only 38.6% 1.55 22.2% 14.4% 31.4% Office - Owner Secti
Slide 22: Real Estate Portfolio By Maturity
Real Estate Portfolio By Maturity MULTIFAMILY PORTFOLIO MATURITY TIMELINE1 CRE PORTFOLIO MATURITY TIMELINE1 ($mm) LTV DSCR2 ($mm) LTV DSCR2 2025 $156 52.5% 1.53 2025 $119 43.5% 1.52 2026 $130 50.1% 1.41 2026 $16 40.3% 1.37 2027 $342 58.6% 1.48 2027 $20 45.5% 1.81 2028 $150 53.5% 1.42 2028 $64 41.8%
Slide 23: Selected Real Estate Risk Exposure Profile
Selected Real Estate Risk Exposure Profile MULTIFAMILY GEOGRAPHIC DISTRIBUTION1 PRE-1974 RS2 AND OFFICE-ONLY LOAN DISTRIBUTION BY COUNTY1 ($mm) ($mm) 9.9% 9.0% 2.5% NY 1.8% Manhattan, NY 4.1% DC 9.3% Brooklyn (Kings), NY 10.9% $1,373mm CA $364mm Queens, NY 49.7% MA Ocean, NJ 72.6% 30.2% Other Other,
Slide 24: Mission-Aligned Loan Portfolio
Mission-Aligned Loan Portfolio MULTIFAMILY LOANS BY IMPACT SEGMENT1,2 C&I LOANS BY IMPACT SEGMENT1,2 ($mm) ($mm) 36 C&I Climate 1 Protection Detail 173 211 Solar: 10 $522mm 37 Alternative Energy: $74mm 649 244 Other: $53mm 1,194 CRE AND LAND LOANS BY IMPACT SEGMENT1,2 CONSUMER AND OTHER LOANS BY IMP
Slide 25: Impact Segment Definitions
Impact Segment Definitions LOAN TYPES INCLUDED WITHIN EACH IMPACT SEGMENT Climate Protection Community Empowerment Health & Wellness • Renewable Energy • Non-Profits • Medical Facilities • Energy Efficiency • CDFI's • Rehabilitation Centers • Energy Storage • Labor Unions • Senior Care • Political O
Slide 26: Tangible Book Value
Tangible Book Value TANGIBLE COMMON EQUITY & TANGIBLE BOOK VALUE 1Q25 SUMMARY ($mm) • TBV increase of 4.0% primarily driven by: 11 722 25 ◦ $25.0 million in net income ◦ $11.3 million improvement in the tax-effected mark-to- — 0.1 market adjustment (4) (4) 23.51 23.51 • Offset by $3.5 million equity
Slide 27: Tangible Common Equity Ratio
Tangible Common Equity Ratio TANGIBLE COMMON EQUITY & TCE RATIO 1Q25 SUMMARY ($mm) • Tangible Common Equity Ratio was 8.73%, up 32bps, or 3.8% OCI Impact Operational Impact Asset from 8.41% in the prior quarter Growth 25 • TCE Ratio increase primarily driven by: 722 ◦ $25.0 million in net income (4)
Slide 28: Metrics Index
Metrics Index DEPOSITS LOANS & CREDIT QUALITY Change Change Metric 1Q25 4Q24 Metric 1Q25 4Q24 QoQ QoQ Total Deposits ex Brokered ($bn) 7.41 7.18 0.23 Total Mission-Aligned Loans ($bn) 2.68 2.67 0.01 Political Deposits ($mm) 1,072 970 102 Pass-Rated Loans as a % of Loan Portfolio 98.2% 97.9% 0.3% Pol
Slide 29: Metrics Index
Metrics Index SECURITIES Change Change Metric 1Q25 4Q24 Metric 1Q25 4Q24 QoQ QoQ Total Investment Securities Book Value1 ($bn) 3.3 3.3 — Weighted Avg Duration5, (years) Total Securities Portfolio, excl. PACE 2.5 2.6 (0.1) Agency Securities as % of Total Portfolio2 23.6% 23.5% 0.1% AFS - total 2.1 2.
Slide 30: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials As of and for the As of and for the Three Months Ended Three Months Ended (in thousands) March 31, 2025 December 31, 2024 March 31, 2024 March 31, 2025 March 31, 2024 Core operating revenue Net Interest Income (GAAP) $ 70,577 $ 73,095 $ 68,037 $ 70,577 $ 68,037
Slide 31: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials As of and for the As of and for the Three Months Ended Three Months Ended (in thousands) March 31, 2025 December 31, 2024 March 31, 2024 March 31, 2025 March 31, 2024 Tangible common equity Stockholders' equity (GAAP) $ 735,996 $ 707,654 $ 616,938 $ 735,995 $ 61
Slide 32: Thank You
Thank You amalgamatedbank.com Member FDIC
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