Amalgamated Financial Corp. · NASDAQ:AMAL
Amalgamated Financial — Q2 2024 Earnings Presentation
29 slides from Amalgamated Financial's earnings presentation, Jul 25, 2024
Slide 1: Second Quarter 2024 Earnings Presentation
Amalgamated Financial Corp. Second Quarter 2024 Earnings Presentation July 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: 2Q24 Highlights
2Q24 Highlights 1.7% 2.1% 2.4% 1Q24 2Q24 1Q24 2Q24 1Q24 2Q24 Core Net Income1,2 Deposit Growth3 Net Interest Income $26.2mm $152.0mm $69.2mm 2.4% 1.6% 3 bps 1Q24 2Q24 1Q24 2Q24 1Q24 2Q24 Core EPS1,2 Leverage Ratio Net Interest Margin $0.85 8.42% 3.46% 3 1 GAAP Net Income and GAAP EPS for 2Q24 are $2
Slide 4: Performance Tracking
Performance Tracking TBV PER-SHARE ($) CORE ROAE CAPITAL RATIOS 20.61 13.68% 13.48% 12.51% 12.63% 12.98% 19.73 18.74 17.16% 17.14% 16.93% 8.29% 8.42% 17.43 16.76% 7.78% 7.89% 8.07% 16.78 15.77% 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 Leverage Ratio CET1 PER-SHARE K
Slide 5: Deposit Portfolio
Deposit Portfolio TOTAL DEPOSITS1 TOTAL CORE DEPOSITS2 BY IMPACT SEGMENT ($bn) 7.3 7.4 7.5 ($bn) 6.9 7.0 7.0 0.39 1.0 1.3 1.3 1.4 0.56 CML - Labor 0.8 1.0 0.5 0.4 0.2 0.2 0.2 0.2 2.13 CML- Social/Philanthropy 0.79 CML - Political 5.6 5.6 5.8 5.8 5.9 5.9 $7.7bn CML - NFP 1.30 Consumer 1.38 CML - Clim
Slide 6: Investment Securities
Investment Securities SECURITIES – BOOK VALUE1,2,3 SECURITIES – YIELDS2 ($bn) ($bn) 3.4 3.4 3.3 3.3 3.3 0.8 0.9 0.8 0.8 0.7 5.75% 5.58% 5.57% 5.44% 5.31% 1.1 1.2 5.57% 5.52% 1.1 1.1 1.1 5.43% 5.20% 5.27% 3.55% 3.36% 3.12% 3.12% 3.22% 1.5 1.4 1.4 1.4 1.4 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2
Slide 7: Investment Securities Composition
Investment Securities Composition AFS PORTFOLIO COMPOSITION1,2,3 VALUATION LOSS AS A % OF PORTFOLIO BALANCE2,3 ($mm) AFS: 130 632 8.1% 7.6% $1,668mm 6.7% 6.1% 906 5.2% 2Q23 3Q23 4Q23 1Q24 2Q24 HTM PORTFOLIO COMPOSITION1,2,3 HTM: ($mm) 18 11.0% 10.6% 239 7.2% 7.2% 7.1% $606mm 348 2Q23 3Q23 4Q23 1Q24
Slide 8: Loans Held for Investment
Loans Held for Investment TOTAL LOANS LOAN COMPOSITION ($bn) ($bn) 0.02 0.02 0.02 4.41 4.42 4.47 0.03 4.36 0.03 0.4 0.4 0.4 4.25 0.3 0.3 4.76% 0.5 0.4 0.4 0.4 4.68% 4.68% 0.5 4.56% 4.33% 1.0 1.1 1.0 1.0 0.9 2Q23 3Q23 4Q23 1Q24 2Q24 Loan Yield 1.1 1.1 1.1 1.2 1.2 MISSION-ALIGNED LOAN COMPOSITION1,2,3
Slide 9: Real Estate Portfolio Composition
Real Estate Portfolio Composition MULTIFAMILY COMPOSITION BY RENT STABILIZATION1 CRE COMPOSITION BY PROPERTY TYPE1 Weighted Weighted Weighted Weighted Category Category Avg. LTV Avg. DSCR3 Avg. LTV Avg. DSCR3 Pre 1974 RS2 55.7% 1.55 10.8% Office 42.1% 1.64 21.2% 16.2% Office - Owner Section 8 58.5%
Slide 10: Real Estate Portfolio By Maturity
Real Estate Portfolio By Maturity MULTIFAMILY PORTFOLIO MATURITY TIMELINE1 CRE PORTFOLIO MATURITY TIMELINE1 ($mm) LTV DSCR2 ($mm) LTV DSCR2 2024 $74 56.8% 1.38 2024 $60 44.2% 1.33 2025 $149 50.6% 1.70 2025 $92 41.7% 1.82 2026 $134 53.6% 1.43 2026 $16 41.5% 1.38 2027 $303 59.7% 1.43 2027 $10 47.6% 1.
Slide 11: Selected Real Estate Risk Exposure Profile
Selected Real Estate Risk Exposure Profile MULTIFAMILY GEOGRAPHIC DISTRIBUTION1 PRE-1974 RS2 AND OFFICE-ONLY LOAN DISTRIBUTION BY COUNTY1 ($mm) ($mm) 11.3% 10.2% NY 2.1% Manhattan, NY 2.6% 4.0% DC 9.5% Brooklyn (Kings), NY 13.1% $1,229mm CA $322mm 42.7% Queens, NY MA Ocean, NJ 69.0% 35.5% Other Othe
Slide 12: Net Interest Income & Margin
Net Interest Income & Margin NET INTEREST INCOME & MARGIN ($mm) 68.0 69.2 67.3 63.7 NIM 63.0 3 bps 3.49% 3.46% 3.44% 3.33% 3.29% 2Q23 3Q23 4Q23 1Q24 2Q24 Net Interest Margin 12
Slide 13: Non-Interest Income and Expense
Non-Interest Income and Expense CORE NON-INTEREST INCOME1,2 ($mm) 8.2 8.5 8.3 8.5 7.8 2.7 3.1 3.2 3.8 2.7 Retail banking Trust fee income 4.0 3.6 Core other income 3.7 3.9 3.7 1.5 1.4 1.8 1.2 1.1 2Q23 3Q23 4Q23 1Q24 2Q24 NON-INTEREST EXPENSE1 ($mm) 38.5 38.2 39.5 39.5 37.2 37.5 37.0 37.3 37.7 37.8 C
Slide 14: Credit Quality
Credit Quality NPA / TOTAL ASSETS 2Q24 HIGHLIGHTS2 • Net charge-offs of 0.25% in 2Q24 compared 0.45% 0.46% 0.43% 0.43% to net charge offs of 0.20% in 1Q24 due to 0.42% elevated charge-offs in our solar loan portfolio • Pass rated loans are 98% of loan portfolio 2Q23 3Q23 4Q23 1Q24 2Q24 QUARTERLY NCO
Slide 15: Allowance for Credit Losses on Loans
Allowance for Credit Losses on Loans ALLOWANCE WATERFALL ACL COVERAGE RATIO BY LOAN TYPE ($mm) 7.00% 6.49% 64.4 3.60% 2.7 1.2 63.4 1.44% 0.88% 0.38% 0.40% (1.2) C&I Multifamily CRE Land Residential Consumer Consumer Solar and Other (2.7) (0.5) ALLOWANCE FOR CREDIT LOSSES ON (0.5) LOANS / TOTAL LOANS
Slide 16: 2024 Guidance
2024 Guidance 2024 FINANCIAL OUTLOOK - REVISED • Core pre-tax pre-provision earnings from $145 million to $149 million to: ◦ $149 million to $152 million • Net Interest Income from $270 million to $274 million to: ◦ $274 million to $278 million - considers the effect of the forward rate curve throug
Slide 17: Appendix
Appendix
Slide 18: Trends
Trends KEY FINANCIAL TRENDS THROUGH 2Q24 ($bn) Loans + PACE Ending Deposits + Brokered CDs > 10.4% CAGR1 > 10.0% CAGR1 5.5 5.6 5.0 7.3% 7.1 7.0 7.4 9.3% 1.1 1.2 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 7.2 3.3 5.3 2020 2021 2
Slide 19: 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 20: Reconciliation of Core Deposits
Reconciliation of Core Deposits Total Core Deposits1, $mm 6/30/2024 Core Political Deposits1, $mm 6/30/2024 Total Deposits (GAAP) 7,449.0 Political Deposits (GAAP) 1,311.0 Less: Brokered CDs (153.4) Add: Political Deposits held off-balance sheet 419.0 Total Deposits, excl. Brokered CDs 7,295.6 Total
Slide 21: Super-Core Deposits
Super-Core Deposits SUPER-CORE DEPOSITS2 BY IMPACT SEGMENT 2Q24 HIGHLIGHTS ($bn) • Super-core deposits2 make up $4.2 billion, or 55% of total core deposits Weighted Avg. Impact Sector Total Balance % of Total Account Duration ◦ Super-core deposits are minimum ($M) Core Deposits 5-years old & concent
Slide 22: Mission-Aligned Loan Portfolio
Mission-Aligned Loan Portfolio MULTIFAMILY LOANS BY IMPACT SEGMENT1,2 C&I LOANS BY IMPACT SEGMENT1,2 ($mm) ($mm) 15 C&I Climate 1 Protection Detail 151 223 Solar: $387mm 12 49 Alternative Energy: 547 $94mm Other: 169 $66mm 1,077 CRE AND LAND LOANS BY IMPACT SEGMENT1,2 CONSUMER AND OTHER LOANS BY IMP
Slide 23: Impact Segment Definitions
Impact Segment Definitions LOAN TYPES INCLUDED WITHIN EACH IMPACT SEGMENT Climate Protection Community Empowerment Health & Wellness • Renewable Energy • Non-Profits • Medical Facilities • Energy Efficiency • CDFI's • Rehabilitation Centers • Energy Storage • Labor Unions • Senior Care • Political O
Slide 24: Tangible Book Value
Tangible Book Value TANGIBLE COMMON EQUITY & TANGIBLE BOOK VALUE 2Q24 SUMMARY ($mm) 5 631 • TBV increase of 4.5% primarily driven by: 27 ◦ $26.7 million in net income 1 — — ◦ $5.3 million improvement in the tax-affected mark-to- (4) market adjustment • No accretive affect to TBV from share repurchas
Slide 25: Metrics Index
Metrics Index DEPOSITS LOANS & CREDIT QUALITY Change Change Metric 2Q24 1Q24 Metric 2Q24 1Q24 QoQ QoQ Total Deposits ex Brokered ($bn) 7.30 6.77 0.53 Total Mission-Aligned Loans ($bn) 2.41 2.39 0.02 Political Deposits ($mm) 1,730 1,438 292 Pass-Rated Loans as a % of Loan Portfolio 97.9% 97.7% 0.2% P
Slide 26: Metrics Index
Metrics Index SECURITIES Change Change Metric 2Q24 1Q24 Metric 2Q24 1Q24 QoQ QoQ Total Investment Securities Book Value1 ($bn) 3.4 3.3 0.1 Valuation Loss ($mm) 2 Agency Securities as % of Total Portfolio 25.3% 22.6% 2.7% AFS - total 86.5 93.1 (6.6) PACE LTV 12.1% 12.0% 0.1% AFS - ex-PACE 86.6 94.1 (
Slide 27: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials As of and for the As of and for the Three Months Ended Six Months Ended (in thousands) June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Core operating revenue Net Interest income (GAAP) $ 69,192 $ 68,037 $ 62,985 $ 137,229 $ 130,264 Non-int
Slide 28: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials As of and for the As of and for the Three Months Ended Six Months Ended (in thousands) June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Tangible common equity Stockholders' equity (GAAP) $ 646,112 $ 616,938 $ 528,614 $ 646,112 $ 528,614 Les
Slide 29: Thank You
Thank You amalgamatedbank.com Member FDIC
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