Amalgamated Financial Corp. · NASDAQ:AMAL
Amalgamated Financial — Q1 2021 Earnings Presentation
22 slides from Amalgamated Financial's earnings presentation, Apr 22, 2021
Slide 1: First Quarter 2021 Earnings Presentation
amalgamatedbank.com Member FDIC Amalgamated Financial Corp. First Quarter 2021 Earnings Presentation April 22, 2021
Slide 2: Safe Harbor Statements
2 Safe Harbor Statements INTRODUCTION On March 1, 2021 (the “Effective Date”), Amalgamated Financial Corp. (the “Company”) completed its holding company reorganization and acquired all of the outstanding stock of Amalgamated Bank (the “Bank”). In this presentation, unless the context indicates other
Slide 3: Safe Harbor Statements cont.
3 Safe Harbor Statements cont. NON-GAAP FINANCIAL MEASURES This presentation contains certain non-GAAP financial measures including, without limitation, “Core Operating Revenue,” “Core Non-interest Expense,” “Tangible Common Equity,” “Average Tangible Common Equity,” “Core Efficiency Ratio,” “Core N
Slide 4: 1Q21 Highlights
1Q21 Highlights 4 (1) See non-GAAP disclosures on pages 20-21 (2) Pre-tax, pre-provision income is defined as net interest income plus non-interest income less non-interest expense 1Q21 HIGHLIGHTS • GAAP net income of $0.39 per diluted share; core net income of $0.41 per diluted share(1) • Pre-tax,
Slide 5: Key Financial Trends Through 1Q21
3,439 3,447 3,223 264 421 452 2,780 3,211 3,703 3,868 3,674 2017 2018 2019 2020 1Q21 3,233 4,105 4,641 5,339 5,720 2017 2018 2019 2020 1Q21 26.4 50.1 68.0 86.7 52.9 2017 2018 2019 2020 1Q21 Trends 5 KEY FINANCIAL TRENDS THROUGH 1Q21 ($ in millions) (1) Compounded Annual Growth Rate (“CAGR”) (2) 1Q21
Slide 6: Deposit Portfolio
Deposit Portfolio 6 TOTAL DEPOSITS ($ in millions) 1Q21 HIGHLIGHTS • Total ending deposits increased $381.4 million compared to 4Q20 due to post-election rebound in political deposits and new relationships in core markets • Total average deposits increased $7.4 million • $160.5 million of average no
Slide 7: Political Deposits
Political Deposits 7 HISTORICAL TREND ($ in millions) $85 $124 $156 $242 $321 $416 $398 $182 $271 $419 $511 $579 $775 $1,101 $1,212 $603 $692 $705 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 4/19
Slide 8: Interest Earning Assets
Interest Earning Assets 8 INTEREST EARNING ASSETS OF $6.1B AS OF MARCH 31, 2021 We maintain a diverse, low risk profile of interest earning assets C&I, Consumer and Other $0.8 B 13% Securities & IB Deposits $2.9 B 47% Multifamily & Commercial Real Estate $1.3 B 21% Residential $1.1 B 19% • No fossil
Slide 9: Loans and Held-to-Maturity Securities
Loans and Held-to-Maturity Securities 9 TOTAL LOANS AND PACE (HTM) ($ in millions) HELD-TO-MATURITY SECURITIES ($ in millions) • Total loans decreased $224.5 million, or -26.4% annualized, compared to 4Q20 due to decrease from existing customer refinancing, and lower C&I due to a large loan payoff •
Slide 10: Investment Securities
Investment Securities 10 SECURITIES – BOOK VALUE(1) ($ millions) (1) Securities book value excludes unrealized Available for Sale (AFS) gain / loss on sale (2) Excludes non-rated securities, e.g. PACE assessments (Held-to-Maturity) • Investment Securities totaled $2.2 billion book value for 1Q21 • S
Slide 11: Net Interest Income and Margin
$44.7 $44.4 $45.2 $45.7 $41.8 3.46% 3.10% 2.88% 3.06% 2.85% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 25.0 30.0 35.0 40.0 45.0 50.0 1Q20 2Q20 3Q20 4Q20 1Q21 Net Interest Income Net Interest Margin Net Interest Income and Margin 11 NET INTEREST INCOME & MARGIN ($ millions) • Net int
Slide 12: Solar Tax-Equity Investments
Solar Tax-Equity Investments OVERVIEW OF SOLAR TAX EQUITY INVESTMENTS • Realization of tax benefits in the project life and subsequent write-down of investment creates volatility in the earnings stream • Current projects are expected to generate losses in the next three quarters and then a stream of
Slide 13: Non-Interest Expense and Efficiency
$30.8 $30.4 $31.5 $32.7 $31.7$32.3 $31.1 $37.9 $32.7 $32.8 59.4% 57.7% 54.8% 58.7% 69.2% 60.0% 58.5% 65.3% 58.7% 71.5% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 1Q20 2Q20 3Q20 4Q20 1Q21 Core NIX NIX Core Eff Ratio Eff Ratio Non-Interest Ex
Slide 14: Allowance for Loan Losses
1.19% 1.36% 1.34% 1.19% 1.13% 1Q20 2Q20 3Q20 4Q20 1Q21 Allowance for Loan Losses 14 ALLOWANCE FOR LOAN LOSSES / TOTAL LOANS ALLOWANCE FOR LOAN LOSSES (ALLL) CHANGE FROM 4Q19 TO 1Q21 ($ millions) • Allowance for loan losses totals $36.7 million in 1Q21, or $4.9 million lower compared to 4Q20 due to l
Slide 15: Credit Quality Portfolio
Credit Quality Portfolio 15 NPA / TOTAL ASSETS NCO / AVERAGE LOANS (1) (Quarter trend) 1Q21 HIGHLIGHTS • Nonperforming assets are $81.0 million as of 1Q21, compared to $82.2 million in 4Q20 • Net charge-offs of 0.20% in 1Q21 is 104 bps lower than 4Q20 due to $6.0 million in charge-offs primarily rel
Slide 16: Returns: ROAE and Core ROATCE
7.6% 8.6% 9.6% 10.3% 9.1% 7.7% 9.1% 13.4% 10.7% 10.1% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 1Q20 2Q20 3Q20 4Q20 1Q21 ROAE CORE ROATCE Returns 16 (1) See non-GAAP disclosures on pages 20-21 ROAE & CORE ROATCE (1)
Slide 17: Capital
Capital 17 TIER 1 LEVERAGE RATIO COMMON EQUITY TIER 1 RATIO • Regulatory capital ratios remain strong • Tier 1 leverage ratio of 8.06% as of 1Q21 • Common Equity Tier 1 Capital of 13.70% • Tier 1 leverage ratio is 25 bps lower due to approximately $380 million in excess cash from strong deposit grow
Slide 18: 2021 Guidance
2021 Guidance 18 2021 FINANCIAL OUTLOOK • Core Pre-tax pre-provision earnings of $72 to $88 million • Excludes impact of solar tax equity income/(loss) and any future non-core items • Year-end 2020 yield curve with no change in Fed rate targets • Approximately 10% balance sheet growth, driven by dep
Slide 19: Appendix
Appendix
Slide 20: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials 20 As of and for the Three Months Ended March 31, December 31, March 31, (in thousands) 2021 2020 2020 Core operating revenue Net Interest income $ 41,844 $ 45,655 $ 44,689 Non-interest income 4,000 10,040 9,118 Less: Branch sale loss (gain) (1) - - (1,428) Less
Slide 21: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials 21 As of and for the Three Months Ended March 31, December 31, March 31, (in thousands) 2021 2020 2020 Tangible common equity Stockholders' Equity (GAAP) $ 540,222 $ 535,821 $ 473,269 Less: Minority Interest (GAAP) (133) (133) (134) Less: Goodwill (GAAP) (12,936
Slide 22: Thank You
Thank You amalgamatedbank.com Member FDIC
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