Amalgamated Financial Corp. · NASDAQ:AMAL
Amalgamated Financial — Amalgamated Bank — Investor Presentation (September 2018)
26 slides from Amalgamated Financial's investor presentation, Sep 11, 2018
Slide 1: Form 8-K Current Report
FEDERAL DEPOSIT INSURANCE CORPORATION WASHINGTON, D.C. 20006 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): September 11, 2018 AMALGAMATED BANK (Exact name of registrant as specified in its charter) New
Slide 2: Item 7.01 Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure On September 11, 2018, Amalgamated Bank (the “Company”) has made available on its website (www.amalgamatedbank.com) an Investor Presentation that provided information to investors about the Company, a copy of which is furnished herewith as Exhibit 99.1. All informa
Slide 3: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMALGAMATED BANK By: /s/ Keith Mestrich Name: Keith Mestrich Title: Chief Executive Officer and President
Slide 4: Exhibit 99.1
Exhibit 99.1
Slide 5: A Best in Class IPO
A Best in Class IPO September 27, 2017 Amalgamated Bank Investor Presentation September 2018
Slide 6: 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 7: Company Overview
Company Overview Strong Heritage Commercial bank and chartered trust company Founded by a union nearly 100 years ago, Amalgamated supports financial equity by providing NASDAQ: AMAL access to banking products and services Market Cap: $622mm(1) Total Assets: $4.2bn Authentic Brand $41bn in asse
Slide 8: Investment Highlights
Investment Highlights 1 Uniquely Positioned Business Model Tailored to Values-Based Institutions 2 Successfully Improved Operating Performance 3 Attractive Geographic Focus 4 Low-Cost, Low Beta Core Deposit Franchise 5 Conservative Asset Allocation & Optimized Balance Sheet 6 Increased Capital Retur
Slide 9: Uniquely Positioned Business Model Tailored to Values-Based Institutions
1 Uniquely Positioned Business Model Tailored to Values-Based Institutions Amalgamated’s core constituencies are a $90bn+(1) target market in key geographic areas (United Federation of Teachers) (Service Employees International Union) (Teamsters) (American Federation of State, County and Political O
Slide 10: Successfully Improved Operating Performance
2 Successfully Improved Operating Performance Increased De-Risked Higher Disciplined Enhanced 2014 Low-Cost Balance Net Interest Expense 2018 Profitability Deposits Sheet Margin Culture Non-interest Bearing Nonperforming Loans / Core Non-Int. Exp. / Deposits Net Interest Margin Core ROAE(1) Total Lo
Slide 11: Attractive Geographic Focus
3 Attractive Geographic Focus (1) • Six major metropolitan markets have $90bn+ of target customer assets • Current footprint includes New York City, Washington D.C. and San Francisco Market Opportunity Across Customer Segments and Target Geographies Chicago Map Legend Boston $0.9 Branch Presence Loa
Slide 12: San Francisco Acquisition
3 San Francisco Acquisition New Resource Bank acquisition expands commercial relationships New Resource Bank Overview Financial Overview – 1Q 2018 (1) Financially attractive and strategically compelling transaction ($ in mm) Total Assets $364 Acquisition provides the opportunity to offer Amalgam
Slide 13: Low-Cost, Low Beta Core Deposit Franchise
4 Low-Cost, Low Beta Core Deposit Franchise Deposit Growth Deposit Beta Analysis(1) ($ in mm) Q2 2018 Deposits Non-interest Bearing ~$4.0bn Interest Bearing (ex. Time) Time New Resource Bank $3,656 62% $320 34% of NRB Deposits are $381 Non-interest Bearing $2,524 40% $580 $1,497 24% $1,132 44% 15% N
Slide 14: Conservative Asset Allocation Framework
5 Conservative Asset Allocation Framework Differentiated business model allows to flexibly allocate excess liquidity to achieve attractive risk-adjusted returns Attractive Low Cost of Conservative Industry Risk-Adjusted Funds Asset Allocation Comparable NIM Returns Expected to Runoff Over Time Step
Slide 15: Prudently Optimized Balance Sheet
5 Prudently Optimized Balance Sheet Earning Portfolio Step Optimization Strategy Key Statistics (2) Asset Composition (1) Mission and relationship focused specialty $88mm 100bps Cumulative Direct C&I lending origination 2% Charge-Offs 2014 – 2017 1. Generate Mission- and Relationship- New New relati
Slide 16: Increased Capital Return Opportunity
6 Increased Capital Return Opportunity Amalgamated prudently manages its capital in-line with its lower risk profile Capital Overview Tier 1 Leverage Ratio Tier 1 Leverage Target Amalgamated’s capital ratios are significantly above regulatory 9.2% minimums and in-line with peers 7.5% - 8.5% 8.6% 7
Slide 17: Investment Highlights
Investment Highlights 1 Uniquely Positioned Business Model Tailored to Values-Based Institutions 2 Successfully Improved Operating Performance 3 Attractive Geographic Focus 4 Low-Cost, Low Beta Core Deposit Franchise 5 Conservative Asset Allocation & Optimized Balance Sheet 6 Increased Capital Retur
Slide 18: Second Quarter 2018 Outlook
Second Quarter 2018 Outlook
Slide 19: Second Quarter 2018 Outlook: Key Financial Highlights
Second Quarter 2018 Outlook Key Financial Highlights ($ in millions, except per share data Continuing to Execute or otherwise noted) Estimates(1) Actuals(2) Post-Split Q2 2018 Pre-Split Q2 2018 Q1 2018 Total Assets ($bn) ~$4.6 $4.2 Integrate New Resource Bank and Net Loans ($bn) ~$3.1 $2.9 Realize
Slide 20: Appendix
Appendix
Slide 21: Credit Metrics
Credit Metrics Credit Metrics ($ in mm) NPLs / Total Loans NCOs (Rec.) / Avg. Loans Portfolio Balance (ex. HFS) Q1 2018 2017 Q1 2018 2017 Multifamily $893 0.00% 0.00% 0.00% 0.00% Residential 1st Lien (1) 890 0.26% 0.22% (0.01%) (0.00%) Commercial & Industrial 667 0.43% 0.45% 0.00% 0.24% CRE (2) 350
Slide 22: Historical Summary Financials
Historical Summary Financials ($ in millions) 2014 2015 2016 2017 1Q 2018 Balance Sheet Total Cash & Securities $1,566 $1,351 $1,324 $1,069 $1,039 Net Loans 1,975 2,270 2,509 2,780 2,882 Other Assets 166 200 209 192 233 Total Assets $3,707 $3,820 $4,042 $4,041 $4,154 Total Deposits 2,524 2,733 3,009
Slide 23: GAAP Reconciliations
GAAP Reconciliations
Slide 24: Historical GAAP Reconciliation
Historical GAAP Reconciliation ($ in millions) Core Earnings 2014A 2015A 2016A 2017A 1Q 2018A Net Income (GAAP) ($11.8) $19.5 $10.6 $6.1 $7.7 Add: Securities loss, net and OTTI 5.1 (2.9) (3.1) 1.4 0.1 Add: Prepayment fees on borrowings 13.5 1.2 2.0 7.6 - Add: Branch closure expense 5.6 1.9 1.0 2.1 -
Slide 25: Historical GAAP Reconciliation
Historical GAAP Reconciliation ($ in millions) Core Non-interest Expense / Average Assets 2014A 2015A 2016A 2017A 1Q 2018A Non-interest expense (GAAP) $129.2 $115.4 $116.9 $122.3 $28.8 Less: Prepayment fees on borrowings (13.5) (1.2) (2.0) (7.6) - Less: Branch closure expense (5.6) (1.9) (1.0) (2.1)
Slide 26: A Best in Class IPO
A Best in Class IPO September 27, 2017
Amalgamated Bank — Investor Presentation (September 2018) on 6ix