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
Amalgamated Financial Corp. First Quarter 2021 Earnings Presentation April 22, 2021 amalgamatedbank.com Member FDIC
Slide 2: Safe Harbor Statements
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 otherwi
Slide 3: Safe Harbor Statements cont.
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 Net
Slide 4: 1Q21 Highlights
1Q21 Highlights 1Q21 HIGHLIGHTS • GAAP net income of $0.39 per diluted share; core net income of $0.41 per diluted share(1) • Pre-tax, pre-provision income(2) of $13.1 million compared to $23.0 million in 4Q20 • Core pre-tax, pre-provision income of $14.1 million compared to $23.0 million in 4Q20 •
Slide 5: Key Financial Trends Through 1Q21
Trends KEY FINANCIAL TRENDS THROUGH 1Q21 ($ in millions) 9.0% 19.2% Loans + PACE CAGR(1) Ending Deposits CAGR(1) 3,868 3,703 3,674 5,720 264 421 5,339 3,211 452 4,641 3,439 3,447 4,105 2,780 3,223 3,233 2017 2018 2019 2020 1Q21 2017 2018 2019 2020 1Q21 Pre-tax Pre-Provision Earnings(2) NPA / Total A
Slide 6: Deposit Portfolio
Deposit Portfolio TOTAL DEPOSITS 1Q21 HIGHLIGHTS ($ in millions) • Total ending deposits increased $381.4 million $6,021 compared to 4Q20 due to post-election $5,870 $5,890 $5,720 rebound in political deposits and new $5,572 $5,580 relationships in core markets $5,431 $5,339 • Total average deposits
Slide 7: Political Deposits
Political Deposits HISTORICAL TREND ($ in millions) $1,212 $1,101 $775 $692 $705 $579 $603 $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 4Q20 1Q21 4/19 7
Slide 8: Interest Earning Assets
Interest Earning Assets INTEREST EARNING ASSETS OF $6.1B AS OF MARCH 31, 2021 We maintain a diverse, low risk profile of interest earning assets • No fossil fuel exposure • $256mm of government guaranteed loans • $174mm residential solar loans C&I, Consumer with strong credit profiles and Other • $8
Slide 9: Loans and Held-to-Maturity Securities
Loans and Held-to-Maturity Securities TOTAL LOANS AND PACE (HTM) 1Q21 HIGHLIGHTS ($ in millions) • Total loans decreased $224.5 million, or -26.4% Total Loans, net Loan Yield annualized, compared to 4Q20 due to decrease 3,500 from existing customer refinancing, and lower $3,638 7.00% $3,515 $3,554 $
Slide 10: Investment Securities
Investment Securities SECURITIES – BOOK VALUE(1) 1Q21 HIGHLIGHTS ($ millions) $2,199 • Investment Securities totaled $2.2 billion 2250 book value for 1Q21 $2,008 $1,341 9.00% 2050 $1,933 $1,924 $1,176 • Securities increased $191.0 million in 1Q21 1850 $1,745 $1,069 $1,095 compared to 4Q20 with conti
Slide 11: Net Interest Income and Margin
Net Interest Income and Margin NET INTEREST INCOME & MARGIN 1Q21 HIGHLIGHTS ($ millions) 50.0 • Net interest income is $41.8 million, 9.00% Net Interest Income Net Interest Margin compared to $45.7 million in 4Q20 8.00% $45.2 $45.7 45.0 $44.7 $44.4 • 1Q21 NIM at 2.85%; a decrease of 21 bps 7.00%and
Slide 12: Solar Tax-Equity Investments
Solar Tax-Equity Investments OVERVIEW OF SOLAR TAX EQUITY INVESTMENTS • Realization of tax benefits in the project life and subsequent write-down of investment creates volatility in the earnings stream • Current projects are expected to generate losses in the next three quarters and then a stream of
Slide 13: Non-Interest Expense and Efficiency
Non-Interest Expense and Efficiency 50.0 NON-INTEREST EXPENSE 100.00% 1Q21 HIGHLIGHTS ($ millions) 45.0 • Efficiency ratio of 71.5% for 1Q21 • Core efficiency ratio of 69.2% for 90.00% 40.0 $37.9 1Q21(1) 35.0 $32.3 $32.7 $32.7 $32.8 • Non-interest expense for 1Q21 is $31.5 $31.7 80.00% $30.8 $30.4 $
Slide 14: Allowance for Loan Losses
Allowance for Loan Losses ALLOWANCE FOR LOAN LOSSES (ALLL) 1Q21 HIGHLIGHTS CHANGE FROM 4Q19 TO 1Q21 ($ millions) • Allowance for loan losses totals $36.7 million in 1Q21, or $4.9 million lower compared to 4Q20 4Q19 ALLL 33.8 due to lower loan balances and changes in credit quality COVID-19 factors 6
Slide 15: Credit Quality Portfolio
Credit Quality Portfolio NPA / TOTAL ASSETS 1Q21 HIGHLIGHTS 1.38% • Nonperforming assets are $81.0 million as of 1Q21, 1.22% 1.27% 1.14% 1.15% 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 related to hotel
Slide 16: Returns
Returns 20.00% ROAE & CORE ROATCE (1) 18.00% 16.00% 14.00% 13.4% 12.00% 10.3% 10.7% 10.1% 10.00% 9.6% 9.1% 9.1% 8.6% 8.00% 7.6% 7.7% 6.00% 4.00% 2.00% 0.00% 1Q20 2Q20 3Q20 4Q20 1Q21 ROAE CORE ROATCE (1) See non-GAAP disclosures on pages 20-21 16
Slide 17: Capital
Capital TIER 1 LEVERAGE RATIO 1Q21 HIGHLIGHTS • Regulatory capital ratios remain strong 8.47% 7.97% 8.06% 7.69% 7.39% • Tier 1 leverage ratio of 8.06% as of 1Q21 • Common Equity Tier 1 Capital of 13.70% 1Q20 2Q20 3Q20 4Q20 1Q21 • Tier 1 leverage ratio is 25 bps lower COMMON EQUITY TIER 1 RATIO due t
Slide 18: 2021 Guidance
2021 Guidance NO CHANGE TO ANNUAL GUIDANCE - PREVIOUSLY PROVIDED 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 • Appro
Slide 19: Appendix
Appendix
Slide 20: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials 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: Se
Slide 21: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials 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
Amalgamated Financial — Q1 2021 Earnings Presentation on 6ix