Amalgamated Financial Corp. · NASDAQ:AMAL
Amalgamated Financial — Q4 2019 Earnings Presentation
21 slides from Amalgamated Financial's earnings presentation, Jan 31, 2020
Slide 1: Fourth Quarter 2019 Earnings Presentation
AMALGAMATED BANK Fourth Quarter 2019 Earnings Presentation January 31, 2020 amalgamatedbank.com Member FDIC
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: Fourth Quarter Highlights
FOURTH QUARTER HIGHLIGHTS 4Q19 Highlights GAAP net income of $0.37 per diluted share Core net income of $0.39 per diluted share(1) Average deposit growth of $200.9 million, or 19.0% annualized, compared to 3Q19 Non-interest bearing deposits are 47% of ending deposits 36 bps cost of deposit
Slide 4: 2019 Highlights: Annual Trends
2019 HIGHLIGHTS Annual Trends ($ in millions) Loans, net Ending Deposits 11.2% 19.8% $4,641 $3,439 CAGR(1) CAGR(1) $3,211 $4,105 $2,780 $3,233 2017 2018 2019 2017 2018 2019 Pre-tax Pre-Provision Earnings NPA / Total Assets $68.0 60.5% CAGR(1) 2.20% $50.1 1.27% 1.25% $26.4 2017 2018 2019 2017 2018 20
Slide 5: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Q4 2019 Mission Aligned Initiatives and Accomplishments Created the Corporate Social Responsibility (CSR) Committee to assist in creating strategy for ESG goals and for developing, implementing and monitoring initiatives and policies to meet that strategy Est
Slide 6: Deposit Portfolio
DEPOSIT PORTFOLIO Total Deposits 4Q19 Highlights ($ in millions) Total ending deposits increased $318.6 million, or 29.5% annualized, compared to 3Q19 $4,641 Total average deposits increased $200.9 million, or 19.0% annualized, $4,425 compared to 3Q19 $4,322 $4,224 $4,136 $87.6 million of aver
Slide 7: Political Deposits
POLITICAL DEPOSITS Political Deposits Historical Trend ($ in millions) $578.6 $510.9 $416.4 $419.4 $397.8 $321.4 $271.0 $241.8 $181.9 $156.5 $124.1 $84.8 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 7
Slide 8: Loan and Held-to-Maturity Securities
LOAN AND HELD-TO-MATURITY SECURITIES Total Loans, Net1 4Q19 Highlights 3,700 ($ in millions) 6.00% Total Loans, net Yield Total loans decreased slightly by 3,500 $3,467 $3,439 5.50% $28.3 million, or 0.8% compared $3,267 $3,291 to 3Q19 3,300 $3,211 5.00% 3,100 4.32% 4.44% 4.42% 4.50% 4Q19 Yield
Slide 9: Property Assessed Clean Energy
PROPERTY ASSESSED CLEAN ENERGY Residential PACE Description Consumer financing for qualifying residential home improvements PACE assessment is recorded as a special tax assessment and is senior to any mortgages Municipalities administer remittance as part of its normal tax billing and collecti
Slide 10: Cash and Investment Securities
CASH AND INVESTMENT SECURITIES Securities – Book value1 4Q19 Highlights ($ in millions) 1,650 3.90% $1,510 Investment Securities totaled $1.5 billion 1,450 $922 book value for 4Q19 3.70% $1,299 $1,256 $1,234 Securities increase of $276 million from 1,250 $1,193 $685 $638 $677 3Q19 is primarily d
Slide 11: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Margin 4Q19 Highlights ($ in millions) 50.0 6.00% Net interest income was $42.3 million, Net Interest Income Net Interest Margin compared to $41.8 million in 3Q19 5.50% 45.0 4Q19 vs. 4Q18 changes due to: 5.00% $41.9 $42.3 $41.8 $40.8 Increases
Slide 12: Non-Interest Expense and Efficiency
NON-INTEREST EXPENSE AND EFFICIENCY 50 Non-Interest Expense 100.0% 4Q19 Highlights ($ in millions) 45 Efficiency ratio of 66.9% for 4Q19 90.0% Core efficiency ratio of 65.1% for 4Q19 (1) 40 $35.0 Non-interest expense for the 4Q19 was $33.5 35 $33.3 $33.5 $31.3 $31.4 $31.8 $31.9 $32.4 80.0% mil
Slide 13: Capital
CAPITAL Tier 1 Leverage Ratio 4Q19 Highlights 9.04% 9.03% Regulatory capital ratios remain well capitalized Tier 1 leverage ratio of 8.90% as of 4Q19 8.90% 8.90% 8.88% Total Risk Based Capital of 14.01% Book value (GAAP) per share of $15.51 4Q18 1Q19 2Q19 3Q19 4Q19 compared to $13.83 as of 4
Slide 14: Credit Quality Portfolio
CREDIT QUALITY PORTFOLIO NPA / Total Assets 4Q19 Highlights 1.50% 1.42% 1.27% 1.25% Nonperforming assets were $66.7 million 1.15% as of 4Q19, compared to $71.6 million in 3Q19 $18.2 million decrease in accruing restructured loans $12.6 million increase in non- accruing loans 4Q18 1Q19 2Q19 3Q1
Slide 15: Allowance for Loan Losses
ALLOWANCE FOR LOAN LOSSES Allowance for Loan Losses 4Q19 Highlights ($ in millions) Allowance for loan losses totaled $33.8 million $37.2 Increase of $0.1 million from 3Q19 Allowance for Loan Losses / Total Loans $33.8 1.15% $33.6 $33.7 1.01% 0.98% 0.95% 0.96% $31.4 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18
Slide 16: Returns: ROAE and Core ROATCE
RETURNS 20.0% ROAE & Core ROATCE (1) 18.0% 16.0% 14.9% 14.0% 12.0% 11.4% 11.4% 11.1% 10.9% 10.7% 10.7% 10.2% 10.5% 9.8% 9.7% 10.0% 10.0% 9.5% 9.7% 8.0% 6.0% 4.0% 2.0% 0.0% 4Q18 1Q19 2Q19 3Q19 4Q19 FY18 FY19 ROAE CORE ROATCE (1) See non-GAAP disclosures on pages 19-20 16
Slide 17: FY 2020 Outlook
FY 2020 OUTLOOK Guidance Pre-tax pre-provision earnings of $70 to $78 million Assumes: Year-end 2019 yield curve with no change in Fed rate targets 10% balance sheet growth Core efficiency ratio of 64% or lower Core expense run rate of approximately $32 million per quarter 2020 Initiativ
Slide 18: Appendix
Appendix amalgamatedbank.com Member FDIC
Slide 19: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials 19
Slide 20: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials 20
Slide 21: Thank You
Thank You amalgamatedbank.com
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