Amalgamated Financial Corp. · NASDAQ:AMAL

Amalgamated Financial — Amalgamated Bank — Q3 2019 Earnings Presentation

19 slides from Amalgamated Financial's earnings presentation, Oct 28, 2019

  1. Slide 1: Third Quarter 2019 Earnings Presentation

    AMALGAMATED BANK Third Quarter 2019 Earnings Presentation October 28, 2019 amalgamatedbank.com Member FDIC

  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: Third Quarter Highlights

    THIRD QUARTER HIGHLIGHTS 3Q19 Highlights  GAAP earnings of $0.41 per diluted share  Core earnings of $0.41 per diluted share  Average deposit growth of $117.4 million, or 11.3% annualized compared to 2Q19  Non-interest bearing deposits are 45% of ending deposits  37 bps cost of deposits  Loan

  4. Slide 4: Environmental, Social and Governance

    ENVIRONMENTAL, SOCIAL AND GOVERNANCE Q3 2019 Mission Aligned Initiatives and Accomplishments  A founding signatory, we were one of three US based banks to sign the UN Principles for Responsible Banking (UNPRB) and joined UNPRB’s Collective Commitment to Climate Action  We joined the newly launched

  5. Slide 5: Deposit Portfolio

    DEPOSIT PORTFOLIO Total Deposits 3Q19 Highlights ($ in millions)  Total ending deposits increased $4,322 $185.9 million, or 17.8% annualized, $4,224 compared to 2Q19 $4,136 $4,105 $4,107 $4,107 $4,011 $4,033  Total average deposits increased $3,953 $3,916 $117.4 million, or 11.3% annualized, compa

  6. Slide 6: Political Deposits

    POLITICAL DEPOSITS Political Deposits Historical Trend ($ in millions) $510.9 $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 3Q19 6

  7. Slide 7: Loan Portfolio

    LOAN PORTFOLIO Total Loans, Net 3Q19 Highlights ($ in millions) 3,700 6.00% Total Loans Yield  Total loans increased $176 million, or 21.4% annualized compared to 2Q19 3,500 $3,467 5.50%  3Q19 loan growth compared to the 2Q19 was due to: $3,291 3,300 $3,267 5.00% $3,211  $83 million increase in r

  8. Slide 8: Cash and Investment Securities

    CASH AND INVESTMENT SECURITIES Securities – Book value 3Q19 Highlights 1,450 ($ in millions) 3.60% $1,299  Investment Securities totaled $1.2 billion $1,256 $685.0 $1,234 book value for 3Q19 versus $1.3 billion in 1,250 $1,193 $1,172 $637.5 $677.0 3.50% 2Q19 $600.7 $615.3 1,050  Securities decreas

  9. Slide 9: Net Interest Income and Margin

    NET INTEREST INCOME AND MARGIN Net Interest Income & Margin 3Q19 Highlights 50.0 ($ in millions) 6.00%  Net interest income was $41.8 million, compared Net Interest Income Net Interest Margin to $41.9 million in 2Q19 5.50% 45.0 3Q19 vs. 3Q18 changes due to: $41.9 $41.8 $40.8 5.00% Increases: $40.0

  10. Slide 10: Non-Interest Expense and Efficiency

    NON-INTEREST EXPENSE AND EFFICIENCY Non-Interest Expense 50 ($ in millions) 100.0% 3Q19 Highlights 45 40 90.0%  Core efficiency ratio of 64.3% for 3Q19(1) 35 $34.1 $33.3 $35.0  Non-interest expense for the 3Q19 was $31.9 $30.5 $31.3 $31.4 $30.8 $31.0 $31.8 $31.9 80.0% million 30 73.3% 71.6%  Core

  11. Slide 11: Capital

    CAPITAL Tier 1 Leverage Ratio 9.04% 9.03% 3Q19 Highlights 8.94%  Regulatory capital ratios remain well 8.90% capitalized 8.88%  Tier 1 leverage of 9.03% as of 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19  Total Risk Based Capital of 14.55% Total Risk Based Capital Ratio  Tangible book value per share of $14.74

  12. Slide 12: Credit Quality Portfolio

    CREDIT QUALITY PORTFOLIO NPA / Total Assets 1.50% 1.42% 3Q19 Highlights 1.25% 1.27% 1.15%  Nonperforming assets were $71.6 million as of 3Q19, compared to $73.9 million in 2Q19  $13.9 million decrease in loans 90 3Q18 4Q18 1Q19 2Q19 3Q19 days due and accruing  $9.3 million increase in accruing NC

  13. Slide 13: Allowance for Loan Losses

    ALLOWANCE FOR LOAN LOSSES Allowance for Loan Losses 3Q19 Highlights ($ in millions)  Allowance for loan losses totaled $33.7 million $37.2  0.96% of total loans compared to 1.01% in 2Q19 $36.4 $33.6 $33.7 Allowance for Loan Losses / Total Loans 1.14% 1.15% 1.01% 0.95% 0.96% $31.4 3Q18 4Q18 1Q19 2Q

  14. Slide 14: Returns

    RETURNS ROAE & Core ROATCE (1) 20.0% 18.0% 16.0% 14.9% 14.0% 12.2% 12.0% 11.4% 10.9% 10.2% 10.5% 9.8% 9.7% 10.0% 9.5% 9.0% 8.0% 6.0% 4.0% 2.0% 0.0% 3Q18 4Q18 1Q19 2Q19 3Q19 ROAE CORE ROATCE  Core ROATCE of 11.4% compared to 10.5% at 2Q19 and 12.2% at 3Q18 (1) See non-GAAP disclosures on pages 17-18

  15. Slide 15: FY 2019 Outlook

    FY 2019 OUTLOOK FY 2019 Prior Outlook Updated Outlook Pre-Tax Pre-Provision $66 to $72 million $66 to $72 million Earnings Deposit Growth 10% to 14% 14% to 18% Loan Growth 6% to 10% 9% to 12% Net Interest Margin 3.55% to 3.65% 3.55% to 3.60% Expense Per Quarter $31 to $33 million $31 to $33 million

  16. Slide 16: Appendix

    Appendix amalgamatedbank.com Member FDIC

  17. Slide 17: Reconciliation of Non-GAAP Financials

    Reconciliation of Non-GAAP Financials 17

  18. Slide 18: Reconciliation of Non-GAAP Financials

    Reconciliation of Non-GAAP Financials 18

  19. Slide 19: Thank You

    Thank You amalgamatedbank.com

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