Slide 1: Fourth Quarter 2024 Earnings Presentation
Amalgamated Financial Corp. Fourth Quarter 2024 Earnings Presentation January 23, 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: 4Q24 Highlights
4Q24 Highlights 1.4% 3.8% 0.1% 3Q24 4Q24 3Q24 4Q24 3Q24 4Q24 Core Net Income1,2 Net Loan Growth3 Net Interest Income $28.0mm $167.6mm $73.1mm 0.6% 5.0% 8 bps 3Q24 4Q24 3Q24 4Q24 3Q24 4Q24 Core EPS1,2 Leverage Ratio Net Interest Margin $0.90 9.06% 3.59% 3 1 GAAP Net Income and GAAP EPS for 4Q24 are $
Slide 4: Performance Tracking
Performance Tracking TBV PER-SHARE ($) CORE ROAE CAPITAL RATIOS 13.68% 13.48% 13.82% 13.90% 12.98% 22.29 22.60 17.14% 16.93% 20.61 16.66% 19.73 18.74 15.77% 15.80% 9.06% 8.29% 8.42% 8.63% 8.07% 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Leverage Ratio CET1 PER-SHARE K
Slide 5: Deposit Portfolio
Deposit Portfolio TOTAL GAAP DEPOSITS1 TOTAL CORE DEPOSITS2 BY IMPACT SEGMENT ($bn) 7.6 ($bn) 7.3 7.4 7.2 7.3 7.0 0.54 CML - Labor 1.3 1.5 1.0 1.0 0.38 1.0 1.3 1.99 0.1 — — CML- Social/Philanthropy 0.2 0.2 0.2 0.81 CML - Political $7.1bn CML - NFP 5.8 5.8 5.9 6.0 6.2 6.3 Consumer 1.27 1.16 CML - Cli
Slide 6: Investment Securities
Investment Securities SECURITIES – BOOK VALUE1,2,3 SECURITIES – YIELDS2 ($bn) ($bn) 3.4 3.4 3.3 3.3 3.3 0.9 0.9 0.8 0.7 0.8 5.75% 5.69% 5.58% 5.57% 5.61% 1.2 5.57% 5.52% 5.53% 1.1 1.1 1.2 1.2 5.43% 5.39% 3.55 3.51% 3.45% 3.36% 3.22% 1.4 1.4 1.4 1.4 1.3 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q
Slide 7: Investment Securities Composition
Investment Securities Composition AFS PORTFOLIO COMPOSITION1,2,3 VALUATION LOSS AS A % OF PORTFOLIO BALANCE2,3 ($mm) AFS: 110 537 $1,546mm 6.7% 6.1% 5.2% 4.5% 899 3.5% 4Q23 1Q24 2Q24 3Q24 4Q24 HTM PORTFOLIO COMPOSITION1,2,3 HTM: ($mm) 18 7.9% 7.2% 7.2% 7.1% 236 $542mm 5.0% 289 4Q23 1Q24 2Q24 3Q24 4Q
Slide 8: Loans Held for Investment
Loans Held for Investment TOTAL LOANS LOAN COMPOSITION ($bn) ($bn) 0.02 4.67 0.02 0.02 4.55 0.02 0.02 4.47 0.4 4.41 4.42 5.00% 0.4 0.4 0.4 0.4 0.4 4.76% 4.79% 0.4 0.4 0.4 0.4 4.68% 4.68% 1.0 1.1 1.2 1.0 1.0 4Q23 1Q24 2Q24 3Q24 4Q24 Loan Yield 1.1 1.2 1.2 1.3 1.4 MISSION-ALIGNED LOAN COMPOSITION1,2,3
Slide 9: Real Estate Portfolio Composition
Real Estate Portfolio Composition MULTIFAMILY COMPOSITION BY RENT STABILIZATION1 CRE COMPOSITION BY PROPERTY TYPE1 Weighted Weighted Weighted Weighted Category Category Avg. LTV Avg. DSCR3 Avg. LTV Avg. DSCR3 Pre 1974 RS2 52.4% 1.55 13.8% Office 32.2% 1.61 21.6% 14.5% 31.8% Office - Owner Section 8
Slide 10: Real Estate Portfolio By Maturity
Real Estate Portfolio By Maturity MULTIFAMILY PORTFOLIO MATURITY TIMELINE1 CRE PORTFOLIO MATURITY TIMELINE1 ($mm) LTV DSCR2 ($mm) LTV DSCR2 2025 $177 51.7% 1.71 2025 $120 39.2% 1.45 2026 $132 51.3% 1.43 2026 $16 40.9% 1.49 2027 $326 59.0% 1.45 2027 $19 46.7% 1.69 2028 $150 53.7% 1.4 2028 $64 42.0% 1
Slide 11: Selected Real Estate Risk Exposure Profile
Selected Real Estate Risk Exposure Profile MULTIFAMILY GEOGRAPHIC DISTRIBUTION1 PRE-1974 RS2 AND OFFICE-ONLY LOAN DISTRIBUTION BY COUNTY1 ($mm) ($mm) 9.9% 9.4% 2.5% NY 1.8% Manhattan, NY 3.6% DC 9.8% Brooklyn (Kings), NY 11.4% $1,351mm CA $352mm 47.4% Queens, NY MA Ocean, NJ 72.6% 31.6% Other Other,
Slide 12: Net Interest Income & Margin
Net Interest Income & Margin NET INTEREST INCOME & MARGIN ($mm) 72.1 73.1 69.2 NIM 67.3 68.0 8 bps 3.59% 3.49% 3.51% 3.44% 3.46% 4Q23 1Q24 2Q24 3Q24 4Q24 Net Interest Margin 12
Slide 13: Non-Interest Income and Expense
Non-Interest Income and Expense CORE NON-INTEREST INCOME1,2 ($mm) 9.4 8.5 8.5 8.8 8.3 4.0 3.1 3.2 3.8 4.0 Retail banking Trust fee income 3.6 4.0 Core other income 3.9 3.7 3.7 1.8 1.2 1.1 1.1 1.4 4Q23 1Q24 2Q24 3Q24 4Q24 NON-INTEREST EXPENSE1 ($mm) 40.7 41.0 41.1 41.1 38.5 38.2 39.5 39.5 37.7 37.8 5
Slide 14: Credit Quality
Credit Quality NPA / TOTAL ASSETS 4Q24 HIGHLIGHTS2 • Net charge-offs of 0.36% include: ◦ $1 million in residential loan charge- 0.43% 0.42% 0.43% offs in December as part of a non- 0.34% performing sale 0.31% ◦ $0.5 million charge-off on a $2.3 million multifamily loan note sale • Pass rated loans a
Slide 15: 2025 Guidance
2025 Guidance INTEREST REVENUE AND EARNINGS OUTLOOK • Net Interest Income of $293 million to $297 million. • Core pre-tax pre-provision earnings of $159 million to $163 million. PERFORMANCE TARGETS • YE Balance Sheet growth ~ 3%: • 9.0% Tier 1 leverage baseline • 52% core efficiency outer band • 1.3
Slide 16: Appendix
Appendix
Slide 17: Trends
Trends KEY FINANCIAL TRENDS THROUGH 4Q24 Loans + PACE Ending Deposits + Brokered CDs ($mm) > 10.0% CAGR1 ($bn) > 7.7% CAGR1 5.8 5.5 8.1% 5.0 7.6% 6.6 7.0 7.2 1.1 1.2 CAGR1 6.4 CAGR1 3.9 3.9 .9 (Loans) 5.3 .1 .2 — (excl. Brokered CD) 4.6 4.3 .4 .6 4.1 3.4 6.4 6.5 6.8 7.2 3.3 5.3 2020 2021 2022 2023 2
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 chart below ◦ Immediate realization of tax benefits and subsequent a
Slide 19: Reconciliation of Core Deposits
Reconciliation of Core Deposits Total Core Deposits1, $mm 12/31/2024 4Q24 HIGHLIGHTS Total Deposits (GAAP) 7,180.6 • All remaining brokered CD's called in Q4 Less: Brokered CDs — • All deposits brought back on Balance-Sheet Total Deposits, excl. Brokered CDs 7,180.6 to fund Q4 Political Deposit Runo
Slide 20: Super-Core Deposits
Super-Core Deposits SUPER-CORE DEPOSITS2 BY IMPACT SEGMENT 3Q24 HIGHLIGHTS ($bn) • Super-core deposits2 make up $3.8 billion, or 54% of total core deposits Weighted Avg. Impact Sector Total Balance % of Total Account Duration ◦ Super-core deposits are minimum ($M) Core Deposits 5-years old & concent
Slide 21: Mission-Aligned Loan Portfolio
Mission-Aligned Loan Portfolio MULTIFAMILY LOANS BY IMPACT SEGMENT1,2 C&I LOANS BY IMPACT SEGMENT1,2 ($mm) ($mm) 45 C&I Climate 1 Protection Detail 162 206 Solar: 10 $502mm 38 Alternative Energy: $75mm 246 631 Other: $54mm 1,189 CRE AND LAND LOANS BY IMPACT SEGMENT1,2 CONSUMER AND OTHER LOANS BY IMP
Slide 22: Impact Segment Definitions
Impact Segment Definitions LOAN TYPES INCLUDED WITHIN EACH IMPACT SEGMENT Climate Protection Community Empowerment Health & Wellness • Renewable Energy • Non-Profits • Medical Facilities • Energy Efficiency • CDFI's • Rehabilitation Centers • Energy Storage • Labor Unions • Senior Care • Political O
Slide 23: Tangible Book Value
Tangible Book Value TANGIBLE COMMON EQUITY & TANGIBLE BOOK VALUE 4Q24 SUMMARY ($mm) • TBV increase of 1.4% primarily driven by $24.5 million in net 24 income 2 — (4) (0.8) • Offset by $12.0mm OCI impact of worsening AFS mark-to- market and $3.7mm equity impact of dividend issuance 693 (12) • Net 1 b
Slide 24: Tangible Common Equity Ratio
Tangible Common Equity Ratio TANGIBLE COMMON EQUITY & TCE RATIO 4Q24 SUMMARY ($mm) • Tangible Common Equity Ratio was 8.41%, up 27bps, or 6.43% OCI Impact Operational Impact Asset from 8.14% in the prior quarter Reduction 24 0.8 693 • TCE Ratio increase primarily driven by: 684 (4) ◦ $24.5 million i
Slide 25: Allowance for Credit Losses on Loans
Allowance for Credit Losses on Loans ALLOWANCE WATERFALL ACL COVERAGE RATIO BY LOAN TYPE ($mm) 7.96% 6.83% 6.06% 4.2 0.1 61.5 1.15% 0.39% 0.71% 0.21% 60.1 C&I Multifamily CRE Land Residential Consumer Consumer 1.8 Solar and Other (3.7) 0.4 ALLOWANCE FOR CREDIT LOSSES ON LOANS / TOTAL LOANS (4.2) 1.4
Slide 26: Metrics Index
Metrics Index DEPOSITS LOANS & CREDIT QUALITY Change Change Metric 4Q24 3Q24 Metric 4Q24 3Q24 QoQ QoQ Total Deposits ex Brokered ($bn) 7.18 7.49 (0.31) Total Mission-Aligned Loans ($bn) 2.67 2.52 0.15 Political Deposits ($mm) 970 1,962 -992 Pass-Rated Loans as a % of Loan Portfolio 97.9% 98.1% (0.2)
Slide 27: Metrics Index
Metrics Index SECURITIES Change Change Metric 4Q24 3Q24 Metric 4Q24 3Q24 QoQ QoQ Total Investment Securities Book Value1 ($bn) 3.3 3.4 (0.1) Weighted Avg Duration5, (years) Total Securities Portfolio, excl. PACE 2.6 2.5 0.1 Agency Securities as % of Total Portfolio2 23.5% 25.6% (2.1)% AFS - total 2.
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 Year Ended December 31, (in thousands) December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2023 2024 Core operating revenue Net Interest Income (GAAP) $ 73,095 $ 72,107 $ 67,319 $ 282,430 $ 2
Slide 29: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials As of and for the As of and for the Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, (in thousands) 2024 2024 2023 2024 2023 Tangible common equity Stockholders' equity (GAAP) $ 707,654 $ 698,332 $ 585,364 $ 707,653
Slide 30: Thank You
Thank You amalgamatedbank.com Member FDIC