Amalgamated Financial Corp. · NASDAQ:AMAL
Amalgamated Financial — Q3 2020 Earnings Presentation
23 slides from Amalgamated Financial's earnings presentation, Oct 28, 2020
Slide 1: Amalgamated Bank Third Quarter 2020 Earnings Presentation
Amalgamated Bank Third Quarter 2020 Earnings Presentation October 28, 2020 amalgamatedbank.com Member FDIC
Slide 2: Safe Harbor Statements
Safe Harbor Statements FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. any statement that does not describe historical or current facts
Slide 3: Third Quarter 2020 Highlights
Third Quarter 2020 HIGHLIGHTS • GAAP net income of $0.40 per diluted share; core net income of $0.54 per diluted share(1) • Pre-tax, pre-provision income(2) of $20.1 million compared to $22.0 million in 2Q20 • Core pre-tax, pre-provision income of $25.9 million compared to $22.3 million in 2Q20 • Ef
Slide 4: Key Financial Trends Through 3Q20
Trends KEY FINANCIAL TRENDS THROUGH 3Q20 ($ in millions) 9.3% 25.4% Loans, net CAGR(1) Ending Deposits CAGR(1) 3,554 6,021 3,439 3,211 2,780 4,641 4,105 3,233 2017 2018 2019 3Q20 2017 2018 2019 3Q20 47.6% Pre-tax Pre-Provision Earnings2 CAGR(1) NPA / Total Assets 84.9 68.0 2.20% 50.1 1.27% 1.25% 1.2
Slide 5: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) 3Q20 MISSION ALIGNED INITIATIVES AND ACCOMPLISHMENTS • Conducted the first round PCAF (Partnership for Carbon Accounting Financials) calculation to measure our financed emissions. Report coming in November 2020. • Provided additional policy summary disclosu
Slide 6: Deposit Portfolio
Deposit Portfolio TOTAL DEPOSITS 3Q20 HIGHLIGHTS ($ in millions) • Total ending deposits increased $150.7 $6,021 million, or 10.3% annualized, compared to $5,870 $5,890 2Q20 $5,431 • Total average deposits increased $459.0 million, or 33.8% annualized, compared to $5,077 2Q20 $4,825 $4,641 • $445.3
Slide 7: Political Deposits
Political Deposits HISTORICAL TREND ($ in millions) $1,212 $1,101 $805 $775 $579 $511 $416 $398 $419 $321 $271 $242 $182 $156 $124 $85 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 26-Oct 7
Slide 8: Liquidity Sources
Liquidity Sources LIQUIDITY SOURCES AMOUNT TO $3.6B AS OF SEPTEMBER 30, 2020 • Capacity to borrow from Federal Home Loan Bank (FHLB) presents largest source of balance sheet funding • Ability to borrow based on existing balance sheet assets as collateral, primarily mortgage (commercial and multi-fam
Slide 9: Interest Earning Assets
Interest Earning Assets INTEREST EARNING ASSETS OF $6.4B AS OF SEPTEMBER 30, 2020 We maintain a diverse, low risk profile of interest earning assets • No fossil fuel exposure • $217mm of government guaranteed loans • $132mm residential solar loans with strong credit profiles C&I, Consumer • $829mm a
Slide 10: Loan and Held-to-Maturity Securities
Loan and Held-to-Maturity Securities TOTAL LOANS, NET(1) 3Q20 HIGHLIGHTS ($ in millions) • Total loans decreased $83.3 million, or 9.2% Total Loans, net Yield annualized, compared to 2Q20 3,700 $3,638 8.00% $3,515 $3,554 $3,467 $3,439 • 3Q20 Yield of 3.97%; flat to 2Q20 and a 7.00% 3,500 3,300 6.00%
Slide 11: COVID-19 Deferrals – Post Quarter Update
COVID-19 Deferrals – Post Quarter Update COVID-19 LOAN DEFERRALS(1) ($ millions) Total Loans Deferrals as of: % of 9/30/20 10/24/20 9/30/20 6/30/20 Portfolio(2) Multifamily $ 975 $ 96 $ 124 $ 192 10% CRE + Construction 450 34 97 124 8% C&I 661 13 5 36 2% Residential 1,329 54 63 103 4% Consumer & Stu
Slide 12: Cash and Investment Securities
Cash and Investment Securities SECURITIES – BOOK VALUE(1) 3Q20 HIGHLIGHTS ($ In millions) • Investment Securities totaled $1.9 billion $1,933 $1,924 book value for 3Q20 1,850 $1,745 $1,069 $1,095 9.00%• Securities are approximately even to 2Q20 $956 with slight increase in mix toward non- 1,650 $1,5
Slide 13: Net Interest Income and Margin
Net Interest Income and Margin NET INTEREST INCOME & MARGIN 3Q20 HIGHLIGHTS ($ in millions) • Net interest income is $45.2 million, 50.0 9.00%compared to $44.4 million in 2Q20 Net Interest Income Net Interest Margin 8.00% • 3Q20 NIM at 2.88%; a decrease of 22 bps $45.2 $44.7 $44.4 and 62 bps, compar
Slide 14: Solar Tax-Equity Investments
Solar Tax-Equity Investments OVERVIEW OF SOLAR TAX EQUITY INVESTMENTS • Realization of tax benefits in the project life and subsequent write-down of investment creates volatility in the earnings stream • Current projects are expected to generate losses in the next two quarters and then a small strea
Slide 15: Non-Interest Expense and Efficiency
Non-Interest Expense and Efficiency 50.0 100.00% NON-INTEREST EXPENSE 3Q20 HIGHLIGHTS 45.0 ($ in millions) • Efficiency ratio of 65.3% for 3Q20 90.00% 40.0 $37.9 • Core efficiency ratio of 54.8% for 3Q20(1) 35.0 $33.5 $31.8 $31.9 $32.4 $32.3 $31.5 80.00% $30.8 $30.4 $31.1 • Non-interest expense for
Slide 16: Allowance for Loan Losses
Allowance for Loan Losses ALLOWANCE FOR LOAN LOSSES (ALLL) 3Q20 HIGHLIGHTS CHANGE FROM 4Q19 TO 3Q20 ($ in millions) • Allowance for loan losses totals $48.1 million in 3Q20 4Q19 ALLL 33.8 • $3.7 million specific charge-off for a legacy Indirect C&I 3.4 loan to a hotel in Ohio that had been partially
Slide 17: Credit Quality Portfolio
Credit Quality Portfolio NPA / TOTAL ASSETS NONPERFORMING LOANS BY PORTFOLIO (excl. 90 days past due and accruing) 1.42% 1.25% ($ millions) 3Q20 1.15% 1.22% Total % of 1.14% EOP NPL Balance Loans (1) Run-off (2) $ 126 $ 41 32.1% Non run-off 3,428 30 0.9% Total $ 3,554 $ 71 2.3% 3Q19 4Q19 1Q20 2Q20 3
Slide 18: Returns
Returns (1) 20.0% ROAE & CORE ROATCE 18.0% 16.0% 14.0% 13.4% 12.0% 11.4% 10.9% 10.7% 9.7% 9.6% 10.0% 9.1% 8.6% 8.0% 7.6% 7.7% 6.0% 4.0% 2.0% 0.0% 3Q19 4Q19 1Q20 2Q20 3Q20 ROAE CORE ROATCE (1) See non-GAAP disclosures on pages 21-22 18
Slide 19: Capital
Capital TIER 1 LEVERAGE RATIO 3Q20 HIGHLIGHTS 9.03% 8.90% • Regulatory capital ratios remain 8.47% strong 7.69% 7.39% • Tier 1 leverage ratio of 7.39% as of 3Q20 • Common Equity Tier 1 Capital 3Q19 4Q19 1Q20 2Q20 3Q20 of 12.76% • Tier 1 leverage ratio was lower by COMMON EQUITY TIER 1 RATIO 73bps du
Slide 20: Appendix
Appendix
Slide 21: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials 21
Slide 22: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials 22
Slide 23: Thank You
Thank You amalgamatedbank.com Member FDIC
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