Amalgamated Financial Corp. · NASDAQ:AMAL
Amalgamated Financial — Q2 2020 Earnings Presentation
25 slides from Amalgamated Financial's earnings presentation, Jul 28, 2020
Slide 1: Second Quarter 2020 Earnings Presentation
AMALGAMATED BANK Second Quarter 2020 Earnings Presentation July 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: Second Quarter 2020 Highlights
Second Quarter 2020 Highlights GAAP net income of $0.33 per diluted share; core net income of $0.34 per diluted share(1) Pre-tax, pre-provision income(2) of $22.0 million compared to $21.5 million in 1Q20 Highest quarterly pre-tax, pre-provision income in history of the Bank Efficiency ratio
Slide 4: Key Financial Trends through 2Q20
Trends Key Financial Trends through 2Q20 ($ in millions) Loans, net 11.4% Ending Deposits 26.9% CAGR(1) CAGR(1) 3,638 3,439 3,515 5,870 5,077 3,211 4,641 4,105 2,780 3,233 2017 2018 2019 1Q20 2Q20 2017 2018 2019 1Q20 2Q20 Pre-tax Pre-Provision Earnings2 CAGR 48.9% (1) NPA / Total Assets 87.2 68.0 2.
Slide 5: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) 2Q20 Mission Aligned Initiatives and Accomplishments Frontline Workers Fund and the Families and Workers Fund launched with Amalgamated Foundation to provide more than $7.5 million in financial support to critical workers on the frontlines of the COVID-19
Slide 6: Deposit Portfolio
Deposit Portfolio Total Deposits(1) 2Q20 Highlights ($ in millions) Total ending deposits increased $793.8 $5,870 million, or 62.9% annualized, compared to 1Q20 $5,431 Total average deposits increased $606.0 $5,077 million, or 50.5% annualized, compared to 1Q20 $4,825 $4,641 $445.5 million of
Slide 7: Political Deposits
Political Deposits Political Deposits Historical Trend ($ in millions) Estimate political deposits to decrease to approximately $300 million immediately $1,149 following the November election $1,101 Cash on hand should fund approximately $500 million of the $800 million draw $775 down with the r
Slide 8: Liquidity Sources
Liquidity Sources Liquidity sources amount to $3.4B as of June 30, 2020 ($ in millions) Balance Key Sources of Liquidity Timing % of Deposits 2Q20 Cash Immediate $590 10% FHLB Borrowing Potential Immediate $1,750 30% Potential Political Deposit Runoff Months ($800) -14% Immediate Core Liquidity $1,5
Slide 9: Interest Earning Assets
Interest Earning Assets Interest Earning Assets of $6.3B as of June 30, 2020 We maintain a diverse, low risk profile of interest earning assets • No fossil fuel exposure • $203mm of government guaranteed loans • $133mm residential solar loans C&I, Consumer • $890mm agency securities with strong cr
Slide 10: Loan and Held-to-Maturity Securities
Loan and Held-to-Maturity Securities Total Loans, Net(1) 2Q20 Highlights ($ in millions) Total Loans, net Yield $3,638 3,700 Total loans increased $123.0 million, or 6.00% $3,515 3,500 $3,467 $3,439 14.1% annualized, compared to 1Q20 5.50% $3,291 3,300 5.00% 2Q20 Yield of 3.97%; decrease of 16 b
Slide 11: Property Assessed Clean Energy
Property Assessed Clean Energy Investment in PACE Funding Group (“PFG”) Strategic investment of $2.5 million with PFG where the Bank provided investment capital, and commitment to purchase PACE financing products Will provide values-aligned financing for customers of PACE assessments Working w
Slide 12: COVID-19 Deferrals – Post Quarter Update
COVID-19 Deferrals – Post Quarter Update COVID-19 Loan Deferrals(1) ($ in millions) Total Loans Deferrals as of: % of Exited 6/30/20 7/25/20 6/20/20 Portfolio Deferral Multifamily $ 972 $ 178 $ 218 18% $ 39 CRE + Construction 469 111 122 24% 12 C&I 618 39 39 6% - Residential 1,433 90 122 6% 33 Consu
Slide 13: Commercial Real Estate – Post Quarter Update
Commercial Real Estate – Post Quarter Update Multifamily loans deferred – week ending July 25, 2020 Loan Current Loan to Value (LTV)(1) Comments Balance 80%+ $ 3.6 87% of loans are in NY 70-79% 16.1 60-69% 17.9 Debt service coverage of 1.4x (pre-COVID) 50-59% 103.5 Current LTV is based on most
Slide 14: Loan Portfolio by Geography
Loan Portfolio by Geography Total Loans, Net (Share %) NY Metro California Other 19% 8% 40% 48% 57% 17% 21% 73% 26% 43% 31% 17% Residential CRE + Multifamily C&I, Consumer Total Loans and Construction and Other 57% of loan portfolio is outside of NY Metro area NY Metro as defined by the US Office
Slide 15: Cash and Investment Securities
Cash and Investment Securities Securities – Book value(1) 2Q20 Highlights ($ in millions) Investment Securities totaled $1.9 billion $1,933 8.00%book value for 2Q20 1,850 $1,745 $1,069 Securities increase of $188 million from 7.00% 1,650 $956 1Q20 is primarily due to an increase in $1,510 6.00%a
Slide 16: Net Interest Income and Margin
Net Interest Income and Margin Net Interest Income & Margin 2Q20 Highlights ($ in millions) Net interest income is $44.4 million, 50.0 9.00% compared to $44.7 million in 1Q20 Net Interest Income Net Interest Margin 8.00% 2Q20 NIM at 3.10%; a decrease of 36 $44.7 $44.4 45.0 7.00% bps and 56 bps,
Slide 17: Non-Interest Expense and Efficiency
Non-Interest Expense and Efficiency Non-Interest Expense 2Q20 Highlights 50 100.0% ($ in millions) Efficiency ratio of 58.5% for 2Q20 45 Core efficiency ratio of 57.7% for 2Q20(1) 90.0% 40 Non-interest expense for 2Q20 is $31.1 million 35 $33.5 $31.9 $32.4 $32.3 80.0% $30.8 $31.0 $31.8 $30.8 $
Slide 18: Allowance for Loan Losses
Allowance for Loan Losses Allowance for Loan Losses Change from 2Q20 Overview 4Q19 to 2Q20 ($ in millions) Allowance for loan losses totals $50.0 million in 2Q20 COVID-19 loan deferrals increased factors in ALLL by $3.2 million $2.7 million specific reserve for a legacy loan to a hotel in Ohio
Slide 19: Credit Quality Portfolio
Credit Quality Portfolio NPA / Total Assets NPA by Portfolio 1.50% 1.42% ($ in millions) 2Q20 Total % of 1.25% EOP NPA Balance 1.14% 1.15% Run-off (1) $ 133 $ 50 37.7% Non run-off 3,547 24 0.7% Total $ 3,680 $ 74 2.0% 2Q19 3Q19 4Q19 1Q20 2Q20 (2) NCO / Average Loans 2Q20 Highlights 0.06% Nonperfor
Slide 20: Returns
Returns ROAE 20.0% & Core ROATCE (1) 18.0% 16.0% 14.0% 12.0% 11.4% 10.5% 10.9% 10.7% 9.7% 9.7% 10.0% 9.1% 8.6% 8.0% 7.6% 7.7% 6.0% 4.0% 2.0% 0.0% 2Q19 3Q19 4Q19 1Q20 2Q20 ROAE CORE ROATCE (1) See non-GAAP disclosures on pages 23-24 20
Slide 21: Capital
Capital Tier 1 Leverage Ratio 2Q20 Highlights Regulatory capital ratios remain strong 9.04% 9.03% 8.90% 8.47% Tier 1 leverage ratio of 7.69% as 7.69% of 2Q20 Common Equity Tier 1 Capital of 12.29% 2Q19 3Q19 4Q19 1Q20 2Q20 Tier 1 leverage ratio was lowered by 64bps due $465 million increase i
Slide 22: Appendix
Appendix amalgamatedbank.com Member FDIC
Slide 23: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials 23
Slide 24: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials 24
Slide 25: Thank You
Thank You amalgamatedbank.com
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