Amalgamated Financial Corp. Reports Second Quarter 2024 Financial Results; Continued Stellar Deposit Growth; Return on Average Assets of 1.30% YoY Tangible Book Value per share Growth of 22.8% | Net Interest Margin of 3.46% NEW YORK, July 25, 2024 – (Globe Newswire) -- Amalgamated Financial Corp. (the “Company” or “Amalgamated”) (Nasdaq: AMAL), the holding company for Amalgamated Bank (the “Bank”), today announced financial results for the second quarter ended June 30, 2024. Second Quarter 2024 Highlights (on a linked quarter basis) • Net income of $26.8 million, or $0.87 per diluted share, compared to $27.2 million, or $0.89 per diluted share. • Core net income1 of $26.2 million, or $0.85 per diluted share, compared to $25.6 million, or $0.83 per diluted share. Deposits and Liquidity • Total deposits increased $143.2 million, or 2.0%, to $7.4 billion including an $8.8 million decline in Brokered CDs. • Excluding Brokered CDs, on-balance sheet deposits increased $152.0 million, or 2.1%, to $7.3 billion. • Political deposits increased $292.3 million, or 20%, to $1.7 billion, which includes both on and off-balance sheet deposits. • Off-balance sheet deposits increased $607.0 million, or 133%, to $1.1 billion, comprised of both transactional political deposits and excess non-political deposits. • Average cost of deposits, excluding Brokered CDs, increased 12 basis points to 148 basis points, where non- interest-bearing deposits comprised 47% of total deposits, excluding Brokered CDs, increasing from the prior quarter. Assets and Margin • Net loans receivable increased $49.0 million, or 1.1%, to $4.4 billion. • Total PACE assessments grew $27.4 million, or 2.4%, to $1.2 billion. • Net interest income grew $1.2 million, or 1.7%, to $69.2 million. • Net interest margin compressed 3 basis points to 3.46%, impacted by an unanticipated premium acceleration. Capital and Returns • Tier 1 leverage ratio of 8.42%, increasing 13 basis points, and Common Equity Tier 1 ratio of 13.48%. • Tangible common equity1 ratio of 7.66%, representing a seventh consecutive quarter of improvement. • Tangible book value per share1 increased $0.88, or 4.5%, to $20.61, and has increased $3.83, or 22.8% since June 2023. • Strong core return on average tangible common equity1 of 17.34% and core return on average assets1 of 1.27% Priscilla Sims Brown, President and Chief Executive Officer, commented, “Our second quarter financial results clearly demonstrate that Amalgamated is continuing its high performance across key metrics. We delivered outstanding deposit growth, strong returns, and a continuously growing, sustainable earnings base that will provide us with optionality as we look to further expand our franchise over the medium term.” 1 1 Reconciliations of non-GAAP financial measures to the most comparable GAAP measure are set forth on the last page of the financial information accompanying this press release and may also be found on our website, www.amalgamatedbank.com.
Second Quarter Earnings Net income for the second quarter of 2024 was $26.8 million, or $0.87 per diluted share, compared to $27.2 million, or $0.89 per diluted share, for the first quarter of 2024. The $0.4 million decrease during the quarter was primarily driven by $3.6 million decrease in non-core income from solar tax equity investments, which was expected, and a $1.4 million increase in non-interest expense. This was offset by a $2.3 million decrease in income tax expense, a $2.0 million increase in non-core ICS One-Way Sell fee income from our off-balance sheet deposits, and a $1.2 million increase in net interest income. Core net income1 for the second quarter of 2024 was $26.2 million, or $0.85 per diluted share, compared to $25.6 million, or $0.83 per diluted share, for the first quarter of 2024. Excluded from core net income for the quarter, pre-tax, was $4.9 million of ICS One-Way Sell fee income, $2.7 million of losses on the sale of securities, $1.8 million of accelerated depreciation from solar tax equity investments, $0.4 million of gains on subordinated debt repurchases, and $44 thousand in severance costs. Excluded from core net income for the first quarter of 2024, pre-tax, was $2.9 million of ICS One-Way Sell fee income, $2.8 million of losses on the sale of securities, $1.8 million of tax credits from our solar tax equity investments, $0.5 million in gains on the settlement of a lease termination, and $0.2 million in severance costs. Net interest income was $69.2 million for the second quarter of 2024, compared to $68.0 million for the first quarter of 2024. Loan interest income decreased $0.7 million and loan yields decreased 8 basis points as a result of $2.1 million of accelerated amortization related to purchase premiums associated with the payoff of a C&I loan relationship, offset by a $16.4 million increase in average loan balances. Interest income on securities increased $1.9 million driven by an increase in the average balance of securities of $138.5 million. Interest income on resell agreements increased $0.7 million driven by a $43.6 million increase in the average balance. The overall increase in interest income was offset by higher interest expense on total interest-bearing deposits of $3.0 million driven by a 22 basis point increase in cost and by an increase in the average balance of total interest-bearing deposits of $126.7 million. The changes in deposit costs were primarily related to increased rates on money market products and select non-time deposit accounts and a 26 basis point increase in the cost of time deposits. The increase in the average balance of interest-bearing deposits was primarily driven by strong deposit growth across both political and non-political sectors, partially offset by a decrease in the average balance of higher cost borrowings of $183.5 million. Net interest margin was 3.46% for the second quarter of 2024, a decrease of 3 basis points from 3.49% in the first quarter of 2024. The decrease is attributable to $2.1 million of accelerated amortization related to purchase premiums associated with the payoff of a C&I loan relationship as mentioned above, which had an approximate 10 basis point constrictive impact on net interest margin in the quarter. Prepayment penalties had no impact on our net interest margin in the second quarter of 2024, which is the same as in the prior quarter. Provision for credit losses totaled an expense of $3.2 million for the second quarter of 2024 compared to an expense of $1.6 million in the first quarter of 2024. The expense in the second quarter was primarily driven by charge-offs on the solar loan portfolio and increase in reserves on the solar loan portfolio, partially offset by improvements in macro-economic forecasts used in the CECL model. Non-interest income was $9.3 million for the second quarter of 2024, compared to $10.2 million in the first quarter of 2024. Excluding all non-core income adjustments, core non-interest income1 was $8.5 million for the second quarter of 2024, compared to $8.3 million in the first quarter of 2024. The increase was primarily related to higher commercial banking fees and increased fees from our treasury investment services, offset by modestly lower income from our trust business. Non-interest expense for the second quarter of 2024 was $39.5 million, an increase of $1.4 million from the first quarter of 2024. Core non-interest expense1 for the second quarter of 2024 was $39.5 million, an increase of $1.0 million from the first quarter of 2024. This was mainly driven by a $0.7 million increase in compensation and employee benefits expense due to select differential investments in employees, as well as higher data processing and personnel recruitment expense. 2
Our provision for income tax expense was $9.0 million for the second quarter of 2024, compared to $11.3 million for the first quarter of 2024. In the current quarter there were $0.5 million of discrete tax benefits resulting in an effective tax rate of 25.2%. In the prior quarter, the conclusion of a state and city tax examination resulted in an adjustment of $0.9 million additional tax expense. Excluding the discrete items and adjustment, our effective tax rate for the second quarter of 2024 was 26.6%, compared to 26.9% for the first quarter of 2024. Balance Sheet Quarterly Summary Total assets were $8.3 billion at June 30, 2024, compared to $8.1 billion at March 31, 2024, modestly growing our balance sheet within our target range. Notable changes within individual balance sheet line items include a $97.2 million decrease in cash and cash equivalents, a $152.8 million increase in securities, and a $49.0 million increase in net loans receivable. Additionally, deposits excluding Brokered CDs increased by $152.0 million while Brokered CDs decreased $8.8 million, and other borrowings decreased by $60.0 million. Our off-balance sheet deposits increased by $607.0 million, or 133%, to $1.1 billion. Total net loans receivable, at June 30, 2024 were $4.4 billion, an increase of $49.0 million, or 1.1% for the quarter. The increase in loans is primarily driven by a $55.1 million increase in multifamily loans, a $23.9 million increase in commercial real estate loans, offset by a $1.7 million decrease in commercial and industrial loans, a $12.9 million decrease in consumer solar loans, and a $14.7 million decrease in residential loans. During the quarter, criticized or classified loans decreased $6.4 million, largely related to a $9.5 million paydown on a classified commercial and industrial loan, and an upgrade of $3.7 million of commercial and industrial loans based on improvement in performance. This was offset by downgrades of small business loans totaling $6.1 million, and a $2.1 million increase in residential and consumer criticized and classified loans. Total deposits at June 30, 2024 were $7.4 billion, an increase of $143.2 million, or 2.0%, during the quarter. Total deposits excluding Brokered CDs increased by $152.0 million to $7.3 billion, or a 2.1% increase. Including accounts currently held off-balance sheet, deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $1.7 billion as of June 30, 2024, an increase of $292.3 million during this quarter, of which a substantial portion were moved off-balance sheet. Non-interest-bearing deposits represented 46% of average total deposits and 47% of ending total deposits for the quarter, excluding Brokered CDs, contributing to an average cost of total deposits of 155 basis points. Super-core deposits2 totaled approximately $4.2 billion, had a weighted average life of 17 years, and comprised 58% of total deposits, excluding Brokered CDs. Total uninsured deposits were $4.5 billion, comprising 60% of total deposits. Nonperforming assets totaled $35.7 million, or 0.43% of period-end total assets at June 30, 2024, an increase of $1.7 million, compared with $34.0 million, or 0.42% on a linked quarter basis. The increase in nonperforming assets was primarily driven by a $3.0 million increase in residential real estate nonaccrual loans and a $0.5 million increase in commercial and industrial nonaccrual loans, offset by a $1.1 million decrease in consumer solar nonaccrual loans and $0.8 million of commercial and industrial loan charge-offs. During the quarter, the allowance for credit losses on loans decreased $1.0 million to $63.4 million. The ratio of allowance to total loans was 1.42%, a decrease of 4 basis points from 1.46% in the first quarter of 2024. The decrease was primarily the result of a commercial and industrial loan charge-off that was previously fully reserved for. 3 2 Refer to Terminology on page 5 for definitions of certain terms used in this release.
Capital Quarterly Summary As of June 30, 2024, our Common Equity Tier 1 Capital ratio was 13.48%, Total Risk-Based Capital ratio was 16.04%, and Tier 1 Leverage Capital ratio was 8.42%, compared to 13.68%, 16.35% and 8.29%, respectively, as of March 31, 2024. Stockholders’ equity at June 30, 2024 was $646.1 million, an increase of $29.2 million during the quarter. The increase in stockholders’ equity was primarily driven by $26.8 million of net income for the quarter and a $5.3 million improvement in accumulated other comprehensive loss due to the tax effected mark-to-market on our available for sale securities portfolio, offset by $3.7 million in dividends paid at $0.12 per outstanding share. Tangible book value per share was $20.61 as of June 30, 2024 compared to $19.73 as of March 31, 2024. Tangible common equity1 improved to 7.66% of tangible assets, compared to 7.41% as of March 31, 2024. Conference Call As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its second quarter 2024 results today, July 25, 2024 at 11:00am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. Second Quarter 2024 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13746895. The telephonic replay will be available until August 1, 2024. Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of our website at https://ir.amalgamatedbank.com/. The online replay will remain available for a limited time beginning immediately following the call. The presentation materials for the call can be accessed on the investor relations section of our website at https:// ir.amalgamatedbank.com/. About Amalgamated Financial Corp. Amalgamated Financial Corp. is a Delaware public benefit corporation and a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank. Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country's oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. As of June 30, 2024, our total assets were $8.3 billion, total net loans were $4.4 billion, and total deposits were $7.4 billion. Additionally, as of June 30, 2024, our trust business held $34.6 billion in assets under custody and $14.0 billion in assets under management. Non-GAAP Financial Measures This release (and the accompanying financial information and tables) refer to certain non-GAAP financial measures including, without limitation, “Core operating revenue,” “Core non-interest expense,” “Core non-interest income,” “Core net income,” “Tangible common equity,” “Average tangible common equity,” “Core return on average assets,” “Core return on average tangible common equity,” and “Core efficiency ratio.” Our management utilizes this information to compare our operating performance for June 30, 2024 versus certain periods in 2024 and 2023 and to prepare internal projections. We believe these non-GAAP financial measures facilitate making 4
period-to-period comparisons and are meaningful indications of our operating performance. In addition, because intangible assets such as goodwill and other discrete items unrelated to our core business, which are excluded, vary extensively from company to company, we believe that the presentation of this information allows investors to more easily compare our results to those of other companies. The presentation of non-GAAP financial information, however, is not intended to be considered in isolation or as a substitute for GAAP financial measures. We strongly encourage readers to review the GAAP financial measures included in this release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this release with other companies’ non-GAAP financial measures having the same or similar names. Reconciliations of non- GAAP financial disclosures to comparable GAAP measures found in this release are set forth in the final pages of this release and also may be viewed on our website, amalgamatedbank.com. Terminology Certain terms used in this release are defined as follows: “Core efficiency ratio” is defined as “Core non-interest expense” divided by “Core operating revenue.” We believe the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income. “Core net income” is defined as net income after tax excluding gains and losses on sales of securities, ICS One-Way Sell fee income, gains on the sale of owned property, costs related to branch closures, restructuring/severance costs, acquisition costs, tax credits and accelerated depreciation on solar equity investments, and taxes on notable pre-tax items. We believe the most directly comparable GAAP financial measure is net income. “Core non-interest expense” is defined as total non-interest expense excluding costs related to branch closures, restructuring/severance, and acquisitions. We believe the most directly comparable GAAP financial measure is total non- interest expense. “Core non-interest income” is defined as total non-interest income excluding gains and losses on sales of securities, ICS One-Way Sell fee income, gains on the sale of owned property, and tax credits and accelerated depreciation on solar equity investments. We believe the most directly comparable GAAP financial measure is non-interest income. “Core operating revenue” is defined as total net interest income plus “core non-interest income”. We believe the most directly comparable GAAP financial measure is the total of net interest income and non-interest income. “Core return on average assets” is defined as “Core net income” divided by average total assets. We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets. “Core return on average tangible common equity” is defined as “Core net income” divided by average “tangible common equity.” We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders’ equity. “Super-core deposits” are defined as total deposits from commercial and consumer customers, with a relationship length of greater than 5 years. We believe the most directly comparable GAAP financial measure is total deposits. “Tangible assets” are defined as total assets excluding, as applicable, goodwill and core deposit intangibles. We believe the most directly comparable GAAP financial measure is total assets. 5
“Tangible common equity”, and “Tangible book value” are defined as stockholders’ equity excluding, as applicable, minority interests, preferred stock, goodwill and core deposit intangibles. We believe that the most directly comparable GAAP financial measure is total stockholders’ equity. "Traditional securities portfolio" is defined as total investment securities excluding PACE assessments. We believe the most directly comparable GAAP financial measure is total investment securities. 6
Forward-Looking Statements Statements included in this release 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 Exchange Act of 1934, as amended. Forward-looking statements generally can be identified through the use of forward- looking terminology such as “may,” “will,” “anticipate,” “aspire,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “in the future,” “may” and “intend,” as well as other similar words and expressions of the future. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any or all of which could cause actual results to differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: (i) uncertain conditions in the banking industry and in national, regional and local economies in our core markets, which may have an adverse impact on our business, operations and financial performance; (ii) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (iii) deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors; (iv) changes in our deposits, including an increase in uninsured deposits; (v) unfavorable conditions in the capital markets, which may cause declines in our stock price and the value of our investments; (vi) negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumer confidence, the financial condition of our borrowers and consumer spending habits, which may affect, among other things, the level of non-performing assets, charge-offs and provision expense; (vii) the rate of growth (or lack thereof) in the economy and employment levels, as well as general business and economic conditions, coupled with the risk that adverse conditions may be greater than anticipated in the markets that we serve; (viii) fluctuations or unanticipated changes in the interest rate environment including changes in net interest margin or changes in the yield curve that affect investments, loans or deposits; (ix) potential deterioration in real estate collateral values; (x) changes in legislation, regulation, public policies, or administrative practices impacting the banking industry, including increased regulation and FDIC assessments in the aftermath of the Silicon Valley and Signature Bank failures; (xi) the outcome of any legal proceedings that may be instituted against us (xii) our inability to maintain the historical growth rate of our loan portfolio; (xiii) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (xiv) the impact of competition with other financial institutions, many of which are larger and have greater resources, and fintechs, as well as changes in the competitive environment (xv) any matter that would cause us to conclude that there was impairment of any asset, including intangible assets; (xvi) the risk that the preliminary financial information reported herein and our current preliminary analysis will be different when our review is finalized; (xvii) increased competition for experienced members of the workforce including executives in the banking industry; (xviii) our ability to meet heightened regulatory and supervisory requirements; (xix) our ability to grow and retain low-cost core deposits and retain large, uninsured deposits; (xx) inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies, required capital maintenance levels or regulatory requests or directives; (xxi) risks associated with litigation, including the applicability of insurance coverage; (xxii) a failure in or breach of our operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xxiii) a downgrade in our credit rating; (xxiv) increased political opposition to Environmental, Social and Governance (“ESG”) practices; (xxv) recessionary conditions; (xxvi) volatile credit and financial markets both domestic and foreign; (xxvii) unexpected challenges related to our executive officer retention; and (xxviii) physical and transitional risks related to climate change as they impact our business and the businesses that we finance. Additional factors which could affect the forward-looking statements can be found in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at https://www.sec.gov/. We disclaim any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law. Investor Contact: Jamie Lillis Solebury Strategic Communications shareholderrelations@amalgamatedbank.com 800-895-4172 7
Consolidated Statements of Income (unaudited) June 30, March 31, June 30, June 30, ($ in thousands) 2024 2024 2023 2024 2023 INTEREST AND DIVIDEND INCOME Loans $ 51,293 $ 51,952 $ 45,360 $ 103,245 $ 90,166 Securities 44,978 42,390 39,506 87,368 79,018 Interest-bearing deposits in banks 2,690 2,592 1,056 5,282 1,673 Total interest and dividend income 98,961 96,934 85,922 195,895 170,857 INTEREST EXPENSE Deposits 28,882 25,891 18,816 54,773 32,651 Borrowed funds 887 3,006 4,121 3,893 7,942 Total interest expense 29,769 28,897 22,937 58,666 40,593 NET INTEREST INCOME 69,192 68,037 62,985 137,229 130,264 Provision for credit losses 3,161 1,588 3,940 4,749 8,899 Net interest income after provision for credit losses 66,031 66,449 59,045 132,480 121,365 NON-INTEREST INCOME Trust Department fees 3,657 3,854 4,006 7,511 7,935 Service charges on deposit accounts 8,614 6,136 2,712 14,750 5,166 Bank-owned life insurance income 615 609 546 1,224 1,327 Losses on sale of securities (2,691) (2,774) (267) (5,465) (3,353) Gains on sale of loans, net 69 47 2 116 4 Equity method investments income (loss) (1,551) 2,072 556 521 711 Other income 545 285 389 830 1,360 Total non-interest income 9,258 10,229 7,944 19,487 13,150 NON-INTEREST EXPENSE Compensation and employee benefits 23,045 22,273 21,165 45,318 43,180 Occupancy and depreciation 3,379 2,904 3,436 6,283 6,835 Professional fees 2,332 2,376 2,759 4,708 4,989 Data processing 4,786 4,629 4,082 9,415 8,631 Office maintenance and depreciation 580 663 718 1,243 1,445 Amortization of intangible assets 182 183 222 365 444 Advertising and promotion 1,175 1,219 1,028 2,394 2,615 Federal deposit insurance premiums 1,050 1,050 1,100 2,100 1,818 Other expense 2,983 2,855 3,019 5,838 6,199 Total non-interest expense 39,512 38,152 37,529 77,664 76,156 Income before income taxes 35,777 38,526 29,460 74,303 58,359 Income tax expense 9,024 11,277 7,818 20,301 15,383 Net income $ 26,753 $ 27,249 $ 21,642 $ 54,002 $ 42,976 Earnings per common share - basic $ 0.88 $ 0.89 $ 0.71 $ 1.77 $ 1.40 Earnings per common share - diluted $ 0.87 $ 0.89 $ 0.70 $ 1.75 $ 1.39 Three Months Ended Six Months Ended 8
Consolidated Statements of Financial Condition ($ in thousands) June 30, 2024 March 31, 2024 December 31, 2023 Assets (unaudited) (unaudited) Cash and due from banks $ 4,081 $ 3,830 $ 2,856 Interest-bearing deposits in banks 53,912 151,374 87,714 Total cash and cash equivalents 57,993 155,204 90,570 Securities: Available for sale, at fair value Traditional securities 1,581,338 1,445,793 1,429,739 Property Assessed Clean Energy (“PACE”) assessments 112,923 82,258 53,303 1,694,261 1,528,051 1,483,042 Held-to-maturity, at amortized cost: Traditional securities, net of allowance for credit losses of $53, $53, and $54, respectively 606,013 616,172 620,232 PACE assessments, net of allowance for credit losses of $655, $657, and $667, respectively 1,054,569 1,057,790 1,076,602 1,660,582 1,673,962 1,696,834 Loans held for sale 1,926 2,137 1,817 Loans receivable, net of deferred loan origination costs 4,471,839 4,423,780 4,411,319 Allowance for credit losses (63,444) (64,400) (65,691) Loans receivable, net 4,408,395 4,359,380 4,345,628 Resell agreements 137,461 131,242 50,000 Federal Home Loan Bank of New York ("FHLBNY") stock, at cost 4,823 4,603 4,389 Accrued interest receivable 52,575 53,436 55,484 Premises and equipment, net 6,599 7,128 7,807 Bank-owned life insurance 106,752 106,137 105,528 Right-of-use lease asset 17,971 19,797 21,074 Deferred tax asset, net 47,654 49,171 56,603 Goodwill 12,936 12,936 12,936 Intangible assets, net 1,852 2,034 2,217 Equity method investments 12,710 14,801 13,024 Other assets 26,214 16,663 25,371 Total assets $ 8,250,704 $ 8,136,682 $ 7,972,324 Liabilities Deposits $ 7,448,988 $ 7,305,765 $ 7,011,988 Subordinated debt, net 68,117 70,570 70,546 Other borrowings 9,135 69,135 234,381 Operating leases 24,784 27,250 30,646 Other liabilities 53,568 47,024 39,399 Total liabilities 7,604,592 7,519,744 7,386,960 Stockholders’ equity Common stock, par value $.01 per share 307 307 307 Additional paid-in capital 286,021 287,198 288,232 Retained earnings 435,202 412,190 388,033 Accumulated other comprehensive loss, net of income taxes (73,579) (78,872) (86,004) Treasury stock, at cost (1,972) (4,018) (5,337) Total Amalgamated Financial Corp. stockholders' equity 645,979 616,805 585,231 Noncontrolling interests 133 133 133 Total stockholders' equity 646,112 616,938 585,364 Total liabilities and stockholders’ equity $ 8,250,704 $ 8,136,682 $ 7,972,324 9
Select Financial Data As of and for the As of and for the Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, (Shares in thousands) 2024 2024 2023 2024 2023 Selected Financial Ratios and Other Data: Earnings per share Basic $ 0.88 $ 0.89 $ 0.71 $ 1.77 $ 1.40 Diluted 0.87 0.89 0.70 1.75 1.39 Core net income (non-GAAP) Basic $ 0.86 $ 0.84 $ 0.72 $ 1.70 $ 1.47 Diluted 0.85 0.83 0.72 1.68 1.46 Book value per common share (excluding minority interest) $ 21.09 $ 20.22 $ 17.29 $ 21.09 $ 17.29 Tangible book value per share (non-GAAP) $ 20.61 $ 19.73 $ 16.78 $ 20.61 $ 16.78 Common shares outstanding, par value $.01 per share(1) 30,630 30,510 30,573 30,630 30,573 Weighted average common shares outstanding, basic 30,551 30,476 30,619 30,513 30,662 Weighted average common shares outstanding, diluted 30,832 30,737 30,776 30,789 30,820 (1) 70,000,000 shares authorized; 30,743,666, 30,736,141, and 30,736,141 shares issued for the periods ended June 30, 2024, March 31, 2024, and June 30, 2023 respectively, and 30,630,386, 30,510,393, and 30,572,606 shares outstanding for the periods ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively. 10
Select Financial Data As of and for the As of and for the Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2024 2024 2023 2024 2023 Selected Performance Metrics: Return on average assets 1.30 % 1.36 % 1.11 % 1.33 % 1.11 % Core return on average assets (non-GAAP) 1.27 % 1.27 % 1.13 % 1.27 % 1.16 % Return on average equity 17.27 % 18.24 % 16.45 % 17.75 % 16.83 % Core return on average tangible common equity (non-GAAP) 17.34 % 17.59 % 17.28 % 17.46 % 18.21 % Average equity to average assets 7.53 % 7.44 % 6.77 % 7.48 % 6.60 % Tangible common equity to tangible assets (non-GAAP) 7.66 % 7.41 % 6.59 % 7.66 % 6.59 % Loan yield 4.68 % 4.76 % 4.33 % 4.72 % 4.36 % Securities yield 5.22 % 5.21 % 4.85 % 5.21 % 4.79 % Deposit cost 1.55 % 1.46 % 1.10 % 1.51 % 0.96 % Net interest margin 3.46 % 3.49 % 3.33 % 3.47 % 3.46 % Efficiency ratio (1) 50.37 % 48.75 % 52.91 % 49.56 % 53.10 % Core efficiency ratio (non-GAAP) 50.80 % 50.40 % 52.31 % 50.60 % 51.97 % Asset Quality Ratios: Nonaccrual loans to total loans 0.78 % 0.75 % 0.79 % 0.78 % 0.79 % Nonperforming assets to total assets 0.43 % 0.42 % 0.45 % 0.43 % 0.45 % Allowance for credit losses on loans to nonaccrual loans 182.83 % 195.04 % 200.19 % 182.83 % 200.19 % Allowance for credit losses on loans to total loans 1.42 % 1.46 % 1.59 % 1.42 % 1.59 % Annualized net charge-offs to average loans 0.25 % 0.20 % 0.29 % 0.22 % 0.27 % Capital Ratios: Tier 1 leverage capital ratio 8.42 % 8.29 % 7.78 % 8.42 % 7.78 % Tier 1 risk-based capital ratio 13.48 % 13.68 % 12.51 % 13.48 % 12.51 % Total risk-based capital ratio 16.04 % 16.35 % 15.26 % 16.04 % 15.26 % Common equity tier 1 capital ratio 13.48 % 13.68 % 12.51 % 13.48 % 12.51 % (1) Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income 11
Loan and PACE Assessments Portfolio Composition (In thousands) At June 30, 2024 At March 31, 2024 At June 30, 2023 Amount % of total Amount % of total Amount % of total Commercial portfolio: Commercial and industrial $ 1,012,400 22.6 % $ 1,014,084 22.9 % $ 949,403 22.3 % Multifamily 1,230,545 27.5 % 1,175,467 26.6 % 1,095,752 25.8 % Commercial real estate 377,484 8.4 % 353,598 8.0 % 333,340 7.8 % Construction and land development 23,254 0.5 % 23,266 0.5 % 28,664 0.7 % Total commercial portfolio 2,643,683 59.0 % 2,566,415 58.0 % 2,407,159 56.6 % Retail portfolio: Residential real estate lending 1,404,624 31.4 % 1,419,321 32.1 % 1,388,571 32.7 % Consumer solar 385,567 8.6 % 398,501 9.0 % 411,873 9.7 % Consumer and other 37,965 1.0 % 39,543 0.9 % 44,135 1.0 % Total retail portfolio 1,828,156 41.0 % 1,857,365 42.0 % 1,844,579 43.4 % Total loans held for investment 4,471,839 100.0 % 4,423,780 100.0 % 4,251,738 100.0 % Allowance for credit losses (63,444) (64,400) (67,431) Loans receivable, net $ 4,408,395 $ 4,359,380 $ 4,184,307 PACE assessments: Available for sale, at fair value Residential PACE assessments 112,923 9.7 % 82,258 7.2 % 23,266 2.2 % Held-to-maturity, at amortized cost Commercial PACE assessments 256,663 22.0 % 256,661 22.5 % 262,093 24.7 % Residential PACE assessments 798,561 68.4 % 801,786 70.3 % 775,707 73.1 % Total Held-to-maturity PACE assessments 1,055,224 90.4 % 1,058,447 92.8 % 1,037,800 97.8 % Total PACE assessments 1,168,147 100.0 % 1,140,705 100.0 % 1,061,066 100.0 % Allowance for credit losses (655) (657) (650) Total PACE assessments, net $ 1,167,492 $ 1,140,048 $ 1,060,416 Loans receivable, net and total PACE assessments, net as a % of Deposits 74.9% 75.3% 76.1% Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs 76.4% 77.0% 81.6% 12
Net Interest Income Analysis Three Months Ended June 30, 2024 March 31, 2024 June 30, 2023 (In thousands) Average Balance Income / Expense Yield / Rate Average Balance Income / Expense Yield / Rate Average Balance Income / Expense Yield / Rate Interest-earning assets: Interest-bearing deposits in banks $ 213,725 $ 2,690 5.06 % $ 205,369 $ 2,592 5.08 % $ 114,010 $ 1,056 3.72 % Securities(1) 3,308,881 42,937 5.22 % 3,170,356 41,064 5.21 % 3,259,797 39,393 4.85 % Resell agreements 122,618 2,041 6.69 % 79,011 1,326 6.75 % 5,570 113 8.14 % Loans receivable, net (2) 4,406,843 51,293 4.68 % 4,390,489 51,952 4.76 % 4,202,911 45,360 4.33 % Total interest-earning assets 8,052,067 98,961 4.94 % 7,845,225 96,934 4.97 % 7,582,288 85,922 4.55 % Non-interest-earning assets: Cash and due from banks 6,371 5,068 5,034 Other assets 217,578 226,270 208,944 Total assets $ 8,276,016 $ 8,076,563 $ 7,796,266 Interest-bearing liabilities: Savings, NOW and money market deposits $ 3,729,858 $ 24,992 2.69 % $ 3,591,551 $ 21,872 2.45 % $ 3,203,681 $ 13,298 1.66 % Time deposits 210,565 1,898 3.63 % 188,045 1,576 3.37 % 158,992 610 1.54 % Brokered CDs 156,086 1,992 5.13 % 190,240 2,443 5.16 % 411,510 4,908 4.78 % Total interest-bearing deposits 4,096,509 28,882 2.84 % 3,969,836 25,891 2.62 % 3,774,183 18,816 2.00 % Other borrowings 104,560 887 3.41 % 288,093 3,006 4.20 % 371,004 4,121 4.46 % Total interest-bearing liabilities 4,201,069 29,769 2.85 % 4,257,929 28,897 2.73 % 4,145,187 22,937 2.22 % Non-interest-bearing liabilities: Demand and transaction deposits 3,390,941 3,138,238 3,055,770 Other liabilities 60,982 79,637 67,710 Total liabilities 7,652,992 7,475,804 7,268,667 Stockholders' equity 623,024 600,759 527,599 Total liabilities and stockholders' equity $ 8,276,016 $ 8,076,563 $ 7,796,266 Net interest income / interest rate spread $ 69,192 2.09 % $ 68,037 2.24 % $ 62,985 2.33 % Net interest-earning assets / net interest margin $ 3,850,998 3.46 % $ 3,587,296 3.49 % $ 3,437,101 3.33 % Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs $ 7,331,364 1.48 % $ 6,917,834 1.36 % $ 6,418,443 0.87 % Total deposits / total cost of deposits $ 7,487,450 1.55 % $ 7,108,074 1.46 % $ 6,829,953 1.10 % Total funding / total cost of funds $ 7,592,010 1.58 % $ 7,396,167 1.57 % $ 7,200,957 1.28 % (1) Includes FHLBNY stock in the average balance, and dividend income on FHLBNY stock in interest income. (2) Includes prepayment penalty interest income in 2Q2024, 1Q2024, and 2Q2023 of $0, $18, and $0, respectively (in thousands). 13
Net Interest Income Analysis Six Months Ended June 30, 2024 June 30, 2023 (In thousands) Average Balance Income / Expense Yield / Rate Average Balance Income / Expense Yield / Rate Interest-earning assets: Interest-bearing deposits in banks $ 209,547 $ 5,282 5.07 % $ 102,550 $ 1,673 3.29 % Securities 3,239,619 84,000 5.21 % 3,310,492 78,586 4.79 % Resell agreements 100,814 3,368 6.72 % 12,071 432 7.22 % Total loans, net (1)(2) 4,398,665 103,245 4.72 % 4,166,389 90,166 4.36 % Total interest-earning assets 7,948,645 195,895 4.96 % 7,591,502 170,857 4.54 % Non-interest-earning assets: Cash and due from banks 5,720 4,527 Other assets 221,924 212,960 Total assets $ 8,176,289 $ 7,808,989 Interest-bearing liabilities: Savings, NOW and money market deposits $ 3,660,704 $ 46,864 2.57 % $ 3,147,765 $ 22,853 1.46 % Time deposits 199,305 3,474 3.51 % 154,429 907 1.18 % Brokered CDs 173,163 4,435 5.15 % 389,718 8,891 4.60 % Total interest-bearing deposits 4,033,172 54,773 2.73 % 3,691,912 32,651 1.78 % Other borrowings 196,326 3,893 3.99 % 359,505 7,942 4.45 % Total interest-bearing liabilities 4,229,498 58,666 2.79 % 4,051,417 40,593 2.02 % Non-interest-bearing liabilities: Demand and transaction deposits 3,264,590 3,170,729 Other liabilities 70,309 71,732 Total liabilities 7,564,397 7,293,878 Stockholders' equity 611,892 515,111 Total liabilities and stockholders' equity $ 8,176,289 $ 7,808,989 Net interest income / interest rate spread $ 137,229 2.17 % $ 130,264 2.52 % Net interest-earning assets / net interest margin $ 3,719,147 3.47 % $ 3,540,085 3.46 % Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs $ 7,124,599 1.42 % $ 6,472,923 0.74 % Total deposits / total cost of deposits $ 7,297,762 1.51 % $ 6,862,641 0.96 % Total funding / total cost of funds $ 7,494,088 1.57 % $ 7,222,146 1.13 % (1) Includes Federal Home Loan Bank (FHLB) stock in the average balance, and dividend income on FHLB stock in interest income. (2) Includes prepayment penalty interest income in June YTD 2024 and June YTD 2023 of $18 and $0 thousand, respectively. 14
Deposit Portfolio Composition Three Months Ended (In thousands) June 30, 2024 March 31, 2024 June 30, 2023 Ending Balance Average Balance Ending Balance Average Balance Ending Balance Average Balance Non-interest-bearing demand deposit accounts $ 3,445,068 $ 3,390,941 $ 3,182,047 $ 3,138,238 $ 2,958,104 $ 3,055,770 NOW accounts 192,452 191,253 200,900 197,659 199,262 193,851 Money market deposit accounts 3,093,644 3,202,365 3,222,271 3,051,670 2,744,411 2,644,580 Savings accounts 336,943 336,240 341,054 342,222 363,058 365,250 Time deposits 227,437 210,565 197,265 188,045 161,335 158,992 Brokered certificates of deposit ("CDs") 153,444 156,086 162,228 190,240 468,481 411,510 Total deposits $ 7,448,988 $ 7,487,450 $ 7,305,765 $ 7,108,074 $ 6,894,651 $ 6,829,953 Total deposits excluding Brokered CDs $ 7,295,544 $ 7,331,364 $ 7,143,537 $ 6,917,834 $ 6,426,170 $ 6,418,443 Three Months Ended June 30, 2024 March 31, 2024 June 30, 2023 (In thousands) Average Rate Paid(1) Cost of Funds Average Rate Paid(1) Cost of Funds Average Rate Paid(1) Cost of Funds Non-interest bearing demand deposit accounts 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % NOW accounts 1.07 % 1.07 % 1.05 % 1.03 % 0.95 % 0.96 % Money market deposit accounts 3.08 % 2.93 % 2.96 % 2.67 % 2.02 % 1.81 % Savings accounts 1.67 % 1.37 % 1.34 % 1.29 % 1.04 % 1.00 % Time deposits 3.50 % 3.63 % 3.44 % 3.37 % 1.77 % 1.54 % Brokered CDs 4.98 % 5.13 % 4.99 % 5.16 % 5.02 % 4.78 % Total deposits 1.59 % 1.55 % 1.60 % 1.46 % 1.27 % 1.10 % Interest-bearing deposits excluding Brokered CDs 2.88 % 2.74 % 2.75 % 2.50 % 1.84 % 1.66 % (1) Average rate paid is calculated as the weighted average of spot rates on deposit accounts. Off-balance sheet deposits are excluded from all calculations shown. 15
Asset Quality (In thousands) June 30, 2024 March 31, 2024 June 30, 2023 Loans 90 days past due and accruing $ — $ — $ — Nonaccrual loans held for sale 989 989 1,546 Nonaccrual loans - Commercial 23,778 24,228 28,078 Nonaccrual loans - Retail 10,924 8,791 5,606 Nonaccrual securities 29 31 35 Total nonperforming assets $ 35,720 $ 34,039 $ 35,265 Nonaccrual loans: Commercial and industrial $ 8,428 $ 8,750 $ 7,575 Multifamily — — 2,376 Commercial real estate 4,231 4,354 4,660 Construction and land development 11,119 11,124 13,467 Total commercial portfolio 23,778 24,228 28,078 Residential real estate lending 7,756 4,763 2,470 Consumer solar 2,794 3,852 2,811 Consumer and other 374 176 325 Total retail portfolio 10,924 8,791 5,606 Total nonaccrual loans $ 34,702 $ 33,019 $ 33,684 16
Credit Quality June 30, 2024 March 31, 2024 June 30, 2023 ($ in thousands) Criticized and classified loans Commercial and industrial $ 53,940 $ 62,242 $ 34,987 Multifamily 10,242 10,274 17,668 Commercial real estate 8,311 8,475 29,788 Construction and land development 11,119 11,124 15,891 Residential real estate lending 7,756 4,763 2,470 Consumer solar 2,794 3,785 2,811 Consumer and other 374 243 325 Total loans $ 94,536 $ 100,906 $ 103,940 Criticized and classified loans to total loans Commercial and industrial 1.21 % 1.41 % 0.82 % Multifamily 0.23 % 0.23 % 0.42 % Commercial real estate 0.19 % 0.19 % 0.70 % Construction and land development 0.25 % 0.25 % 0.37 % Residential real estate lending 0.17 % 0.11 % 0.06 % Consumer solar 0.06 % 0.09 % 0.07 % Consumer and other 0.01 % 0.01 % 0.01 % Total loans 2.12 % 2.29 % 2.45 % June 30, 2024 March 31, 2024 June 30, 2023 Annualized net charge- offs (recoveries) to average loans ACL to total portfolio balance Annualized net charge- offs (recoveries) to average loans ACL to total portfolio balance Annualized net charge- offs (recoveries) to average loans ACL to total portfolio balance Commercial and industrial 0.32 % 1.44 % 0.16 % 1.58 % 0.36 % 1.77 % Multifamily — % 0.38 % — % 0.38 % — % 0.58 % Commercial real estate — % 0.40 % — % 0.40 % — % 0.69 % Construction and land development — % 3.60 % — % 3.67 % — % 1.13 % Residential real estate lending (0.18) % 0.88 % — % 0.87 % (0.01) % 1.10 % Consumer solar 2.57 % 7.00 % 1.67 % 6.72 % 0.58 % 6.79 % Consumer and other 0.01 % 6.49 % 0.86 % 6.36 % 0.96 % 6.06 % Total loans 0.25 % 1.42 % 0.20 % 1.46 % 0.14 % 1.59 % 17
Reconciliation of GAAP to Non-GAAP Financial Measures The information provided below presents a reconciliation of each of our non-GAAP financial measures to the most directly comparable GAAP financial measure. As of and for the As of and for the Three Months Ended Six Months Ended (in thousands) June 30, 2024 March 31, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Core operating revenue Net Interest income (GAAP) $ 69,192 $ 68,037 $ 62,985 $ 137,229 $ 130,264 Non-interest income 9,258 10,229 7,944 19,487 13,150 Add: Securities loss 2,691 2,774 267 5,465 3,353 Less: ICS One-Way Sell Fee Income(1) (4,859) (2,903) — (7,762) — Less: Subdebt repurchase gain(2) (406) — — (406) (780) Add: Tax (credits) depreciation on solar investments(3) 1,815 (1,808) — 7 — Core operating revenue (non-GAAP) 77,691 76,329 71,196 154,020 145,987 Core non-interest expense Non-interest expense (GAAP) $ 39,512 $ 38,152 $ 37,529 $ 77,664 $ 76,156 Add: Gain on settlement of lease termination(4) — 499 — 499 — Less: Severance costs(5) (44) (184) (285) (228) (285) Core non-interest expense (non-GAAP) 39,468 38,467 37,244 77,935 75,871 Core net income Net Income (GAAP) $ 26,753 $ 27,249 $ 21,642 $ 54,002 $ 42,977 Add: Securities loss 2,691 2,774 267 5,465 3,353 Less: ICS One-Way Sell Fee Income(1) (4,859) (2,903) — (7,762) — Less: Gain on settlement of lease termination(4) — (499) — (499) — Less: Subdebt repurchase gain(2) (406) — — (406) (780) Add: Severance costs(5) 44 184 285 228 285 Add: Tax (credits) depreciation on solar investments(3) 1,815 (1,808) — 7 — Less: Tax on notable items 180 607 (147) 775 (753) Core net income (non-GAAP) 26,218 25,604 22,047 51,810 45,082 Tangible common equity Stockholders' equity (GAAP) $ 646,112 $ 616,938 $ 528,614 $ 646,112 $ 528,614 Less: Minority interest (133) (133) (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) (12,936) (12,936) Less: Core deposit intangible (1,852) (2,034) (2,661) (1,852) (2,661) Tangible common equity (non-GAAP) 631,191 601,835 512,884 631,191 512,884 Average tangible common equity Average stockholders' equity (GAAP) $ 623,024 $ 600,759 $ 527,599 $ 611,892 $ 515,111 Less: Minority interest (133) (133) (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) (12,936) (12,936) Less: Core deposit intangible (1,941) (2,123) (2,769) (2,032) (2,879) Average tangible common equity (non-GAAP) 608,014 585,567 511,761 596,791 499,163 Core return on average assets Denominator: Total average assets (GAAP) $ 8,276,016 $ 8,076,563 $ 7,796,266 8,176,290 7,808,988 Core return on average assets (non-GAAP) 1.27% 1.27% 1.13% 1.27% 1.16% Core return on average tangible common equity Denominator: Average tangible common equity $ 608,014 $ 585,567 $ 511,761 596,791 499,163 Core return on average tangible common equity (non-GAAP) 17.34% 17.59% 17.28% 17.46% 18.21% Core efficiency ratio Numerator: Core non-interest expense (non-GAAP) $ 39,468 $ 38,467 $ 37,244 $ 77,935 $ 75,871 Core efficiency ratio (non-GAAP) 50.80% 50.40% 52.31% 50.60% 51.97% (1) Included in service charges on deposit accounts in the Consolidated Statements of Income (2) Included in other income in the Consolidated Statements of Income (3) Included in equity method investments income in the Consolidated Statements of Income (4) Included in occupancy and depreciation in the Consolidated Statements of Income (5) Included in compensation and employee benefits in the Consolidated Statements of Income 18
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