Amalgamated Financial Corp. · NASDAQ:AMAL
Amalgamated Financial — Amalgamated Bank — Q4 2018 Earnings Presentation
18 slides from Amalgamated Financial's earnings presentation, Jan 29, 2019
Slide 1: Fourth Quarter 2018 Earnings Presentation
A Best in Class IPO September 27, 2017 Amalgamated Bank Fourth Quarter 2018 Earnings Presentation January 29, 2019
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: FY 2018 & 4Q18 Highlights
FY 2018 & 4Q18 HIGHLIGHTS FY 2018 Highlights 4Q18 Highlights Completed the acquisition and Reported Net Income of $8.4 million integration of New Resource Bank (NRB) Reported EPS of $0.26 per diluted share Initial public offering completed in Core earnings1 of $9.7 million August and first
Slide 4: Deposit Portfolio
DEPOSIT PORTFOLIO Total Deposits 4Q18 Highlights ($ in millions) $4,033 $4,105 Total deposits were $4.1 billion, an $3,962 increase of $72.5 million, or 7.2% annualized, as compared to 3Q18 $3,336 $3,233 Total deposits included $326.7 million of short term deposits which have since exited the Ba
Slide 5: Political Deposits
POLITICAL DEPOSITS Political Deposits Trend ($ in millions) $416.4 $397.8 $321.4 $120 million increase in post-election balances $241.8 $181.9 $156.5 $124.1 $84.8 $62.0 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 5
Slide 6: Loan Portfolio
LOAN PORTFOLIO Total Net Loans 4Q18 Highlights ($ in millions) Total loans increased $47.0 million, or 5.9% annualized compared to 3Q18 $3,248 Total Loans Yield Yield - Adj. $3,201 Full year 2018 total loans increased $432.0 million, or 15.3%, as $3,122 compared to year end 2017 Indirect C&I l
Slide 7: Cash and Investment Securities
CASH AND INVESTMENT SECURITIES Securities 4Q18 Highlights ($ in millions) Cash and Investment Securities $1,193 $1,172 $1,139 totaled $1.3 billion for 4Q18 versus $1.2 billion in 3Q18 $958 $997 As of 4Q18 $1.2 billion of available $600.7 for sale securities, compared to $615.3 $604.3 $943.4 mill
Slide 8: Credit Quality Portfolio
CREDIT QUALITY PORTFOLIO NPAs/ Total Assets 4Q18 Highlights 2.20% Nonperforming assets were $59.3 million as of 4Q18, compared to $58.0 in 3Q18, nonperforming assets 1.35% 1.25% 1.27% 1.13% decreased $29.8 million versus 4Q17 Net Charge-offs to average loans of 0.01% during the quarter versus (0
Slide 9: Allowance for Loan Losses
ALLOWANCE FOR LOAN LOSSES Allowance for Loan Losses 4Q18 Highlights ($ in millions) Allowance for loan losses totaled 37.4 $37.2 million 37.2 Up $0.8 million compared to 36.4 3Q18 36.0 1.15% of total loans compared to 1.14% in the prior quarter 35.4 Allowance for Loan Losses/ Total Loans 1.28%
Slide 10: Net Interest Income and Margin
NET INTEREST INCOME AND MARGIN Net Interest Income & Margin 4Q18 Highlights ($ in millions) Net interest income was $40.2 million, $40.0 $40.2 relatively flat compared to $40.0 million in 3Q18 $36.7 $32.8 Up 28.6% compared to $31.3 in 4Q17 $31.3 Changes due to: 3.65% 3.64% Increases: 3.56% • A
Slide 11: Non-Interest Expense and Efficiency
NON-INTEREST EXPENSE AND EFFICIENCY Non-Interest Expense 4Q18 Highlights ($ in millions) Non-interest expense for the fourth quarter of 2018 was $35.0 million up $0.9million from $34.1million in 3Q18. Core non-interest expense for the fourth quarter of 2018 $35.0 $34.1 $33.3 was $33.3 million, u
Slide 12: Capital
CAPITAL Tier 1 Leverage Ratio 4Q18 Highlights 8.94% 8.86% Total stockholders equity was $426.2 million as of as as of December 31, 8.60% 8.59% 2018 8.41% Regulatory capital ratios remain in- line with industry Tier 1 leverage of 8.86% as of 4Q18, down 8 bps 4Q17 1Q18 2Q18 3Q18 4Q18 Total Ris
Slide 13: ROATCE & Core ROATCE
ROATCE & CORE ROATCE ROATCE 11.06% 13.08% 12.82% 12.17% 9.85% 9.45% 9.14% 9.47% 9.50% 8.73% 5.56% 4.12% 1.78% 4Q17 1Q18 2Q18 3Q18 4Q18 FY 2017 FY 2018 Core ROATCE ROATCE -4.12% Core ROATCE ROATCE 4Q18 and FY Highlights FY 2018 ROATCE of 11.06% compared to 4.12% for FY 2017 4Q18 Core ROATCE of 9.
Slide 14: FY 2019 Outlook
FY 2019 OUTLOOK Outlook Pre-tax pre-provision earnings of $62 to $67 million Assumes: January yield curve with no further Fed rate hikes Deposit growth of 7 - 10%, off an adjusted base of $3.8 billion Loan growth of 9 - 12%, including purchases Net interest margin of 3.5 - 3.6% $125 mi
Slide 15: Appendix
Appendix
Slide 16: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials For the Three For the Twelve Months Ended Months Ended (in thousands) December 31, Sepetmber 30 December 31, December 31, 2018 2018 2017 2018 2017 Core operating revenue Net interest income (GAAP) $ 40,205 $ 40,042 $ 31,254 $ 149,745 x $ 121,297 Non interest inc
Slide 17: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials For the Three For the Twelve Months Ended Months Ended (in thousands) December 31, Sepetmber 30 December 31, December 31, 2018 2018 2017 2018 2017 Tangible common equity Stockholders Equity (GAAP) $ 431,739 $ 421,028 $ 344,068 $ 431,739 $ 344,068 Less: Minority
Slide 18: A Best in Class IPO
A Best in Class IPO September 27, 2017