• Amalgamated Financial Corp. Reports Record Third Quarter 2022 Financial Results

    来源: Nasdaq GlobeNewswire / 27 10月 2022 06:25:01   America/New_York

    NEW YORK, Oct. 27, 2022 (GLOBE NEWSWIRE) -- Amalgamated Financial Corp. (the “Company” or “Amalgamated”) (Nasdaq: AMAL), the holding company for Amalgamated Bank (the “Bank”), today announced record financial results for the third quarter ended September 30, 2022.

    Third Quarter 2022 Highlights

    • Record earnings of $22.9 million, or $0.74 per diluted share, compared to $19.6 million, or $0.63 per diluted share, on a linked quarter basis.
    • Excluding the impact of solar tax equity investments, core net income was $24.8 million, or $0.80 per diluted share, as compared to $20.9 million, or $0.67 per diluted share, on a linked quarter basis.
    • Average deposits increased by $191.1 million, or 2.7%, to $7.3 billion, on a linked quarter basis.
    • Industry leading average cost of deposits of 14 basis points, where non-interest bearing deposits comprised 54% of total deposits.
    • Loans receivable, net of allowance and deferred fees and costs, increased $220.2 million, or 6.1%, to $3.8 billion, on a linked quarter basis.
    • PACE assessments grew $114.6 million to $856.7 million on a linked quarter basis, comprised of an $8.7 million increase in commercial and $105.9 million increase in residential.
    • Net interest income grew $11.1 million, or 19.6%, to $67.6 million compared to $56.5 million, while net interest margin grew by 47 basis points to 3.50%, compared to 3.03%, each on a linked quarter basis.
    • Nonaccrual loans improved to $19.8 million or 0.51% of total loans, compared to $24.4 million or 0.67% of total loans on a linked quarter basis.
    • Credit quality improved with criticized loans declining $22.8 million, or 16.8%, to $113.0 million, on a linked quarter basis.
    • Regulatory capital remains above bank “well capitalized” standards.

    “I am proud to say that the momentum we have established in the last year demonstrates that our ‘Growth For Good’ strategy is working, as we reported record earnings for a second consecutive quarter,” said Priscilla Sims Brown, President and CEO. “We are progressing well toward our aspiration of achieving the most improved financial performance in U.S. banking, just as Amalgamated will celebrate its 100th anniversary in a few short months. I could not be more inspired by the team we have in place to propel this great bank into its next centennial.”

    Third Quarter Earnings

    Net income for the third quarter of 2022 was a record $22.9 million, or $0.74 per diluted share, compared to $19.6 million, or $0.63 per diluted share, for the second quarter of 2022. The $3.3 million increase for the third quarter of 2022 compared to the preceding quarter was primarily driven by an $11.1 million increase in net interest income, partially offset by a $2.5 million increase in provision for loan losses, a $2.2 million decrease in non-interest income, a $2.0 million increase in non-interest expense, and a $1.2 million increase in income tax expense related to our increased pre-tax income.

    Core net income excluding the impact of solar tax equity investments (non-GAAP)1 for the third quarter of 2022 was $24.8 million, or $0.80 per diluted share, compared to $20.9 million, or $0.67 per diluted share, for the second quarter of 2022. Excluded from core net income for the third quarter of 2022 was $1.8 million of losses on sales of securities, $0.6 million of gains on subordinated debt repurchases, and $1.3 million of accelerated depreciation from our solar tax equity investments. Excluded from the second quarter of 2022 was $0.6 million of losses on the sale of securities, $0.3 million of non-interest one-time expenses, and $0.9 million of tax credits on solar tax equity investments in the second quarter of 2022. Presentation excluding the temporary effect of the tax credits and accelerated depreciation of solar tax equity investments reduces the financial statement volatility associated with these investments.

    Net interest income was $67.6 million for the third quarter of 2022, compared to $56.5 million for the second quarter of 2022. The $11.1 million increase from the preceding quarter mainly reflected higher interest income on securities of $6.4 million driven by a $78.9 million increase in average securities and a 64 basis point increase in securities yield. Loan interest income increased $4.5 million driven by a $189.5 million increase in average loan balances and a 25 basis point increase in loan yields. Total interest income was offset slightly by higher interest expense driven by a 13 basis point increase in deposit costs. These increases in yields and costs are primarily due to the rising interest rate environment.

    Net interest margin was 3.50% for the third quarter of 2022, an increase of 47 basis points from 3.03% in the second quarter of 2022. The margin increase compared to the preceding quarter was driven by large increases on floating rate yields from interest-earning assets, partially offset by increases in costs on interest-bearing liabilities. Prepayment penalties earned in loan income contributed four basis points to our net interest margin in the third quarter of 2022, compared to two basis points in the second quarter of 2022.

    Provision for loan losses totaled $5.4 million for the third quarter of 2022 compared to $2.9 million in the second quarter of 2022. The increase in the provision expense on a linked quarter basis is primarily driven by higher loan balances, an increase in qualitative factors, and $1.6 million in charge-offs related to nonperforming loans that were transferred to held for sale.

    Core non-interest income excluding the impact of solar tax equity investments (non-GAAP)1 was $7.5 million for the third quarter of 2022, compared to $8.7 million in the second quarter of 2022. The decrease of $1.2 million was primarily related to losses on sale of nonperforming loans held for sale.

    Core non-interest expense (non-GAAP)1 for the third quarter of 2022 was $36.3 million, an increase of $2.3 million from the second quarter of 2022. This was primarily driven by a $1.5 million expected increase in compensation and employee benefits and a $0.4 million increase in professional fees.

    Our provision for income tax expense was $8.1 million for the third quarter of 2022, compared to $6.9 million for the second quarter of 2022. The increase is based on a higher pre-tax income. Our effective tax rate for the third quarter of 2022 was 26.0%, compared to 25.9% for the second quarter of 2022.

    Balance Sheet Quarterly Summary

    Total assets were $7.9 billion at September 30, 2022, compared to $7.9 billion at June 30, 2022. Notable changes within individual balance sheet line items include a $222.9 million increase in loans receivable, net of allowance and deferred fees and costs, offset by a reduction in cash of $266.3 million, a $33.1 million decrease in resell agreements, and a $31.3 million decrease in investment securities.

    Total loans receivable, net of allowance and deferred fees and costs at September 30, 2022 were $3.8 billion, an increase of $220.2 million, or 6.1%, compared to June 30, 2022. The increase in loans is primarily driven by a $95.9 million increase in residential loans, a $61.7 million increase in commercial and industrial loans, a $41.4 million increase in our consumer and other loans due to solar loan originations, and a $31.3 million increase in multifamily loans, offset by a $4.3 million decrease in construction and land loans, and a $3.0 million decrease in the commercial real estate portfolio as we selectively de-risk our exposure in metropolitan areas. Our continued focus on credit quality improvement in the commercial portfolio resulted in $16.9 million of payoffs of criticized or classified loans.

    Deposits at September 30, 2022 were $7.2 billion, a decrease of $130.9 million, or 1.8%, as compared to $7.3 billion as of June 30, 2022. Total deposits year to date have increased $804.0 million, or 12.6%. Deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $1.2 billion as of September 30, 2022, a decrease of $123.7 million on a linked quarter basis. Accelerated runoff of political deposits is anticipated in the fourth quarter related to the conclusion of the congressional elections.

    Noninterest-bearing deposits represent 56% of average deposits and 54% of ending deposits for the quarter ended September 30, 2022, contributing to an average cost of deposits of 14 basis points in the third quarter of 2022.

    Nonperforming assets totaled $54.3 million, or 0.69% of period-end total assets at September 30, 2022, a decrease of $11.0 million, compared with $65.3 million, or 0.82% on a linked quarter basis. The decrease in non-performing assets was primarily driven by a $5.7 million paydown on one commercial and industrial loan, as well as $3.9 million in residential loans that were sold.

    The allowance for loan losses increased $2.6 million to $42.1 million at September 30, 2022 from $39.5 million at June 30, 2022, primarily due to increases in loan balances and an increase in qualitative factors. At September 30, 2022, we had $38.2 million of impaired loans for which there was a specific allowance of $5.2 million, compared to $60.1 million of impaired loans at June 30, 2022 for which there was a specific allowance of $6.1 million. The ratio of allowance to total loans was 1.09% at September 30, 2022 and 1.08% at June 30, 2022. The ratio of allowance to nonaccrual loans improved to 212.51% at September 30, 2022.

    Capital Quarterly Summary

    As of September 30, 2022, our Common Equity Tier 1 Capital Ratio was 11.91%, Total Risk-Based Capital Ratio was 14.43%, and Tier-1 Leverage Capital Ratio was 7.16%, compared to 11.75%, 14.41%, and 7.08%, respectively, as of June 30, 2022. Stockholders’ equity at September 30, 2022 was $487.7 million, compared to $498.0 million at June 30, 2022. The decrease in stockholders’ equity was primarily driven by a $29.7 million increase in accumulated other comprehensive loss due to the tax effected mark-to-market on our securities portfolio, partially offset by $22.9 million of net income for the quarter.

    Our tangible book value per share was $15.37 as of September 30, 2022 compared to $15.69 as of June 30, 2022, primarily as a result of a $29.7 million decline from the previous quarter in the tax effected mark-to-market adjustment for the fair value of our available-for-sale securities portfolio. The mark-to-market adjustment had no impact on our Tier 1 Capital Ratio or other risk based ratios. Tangible common equity was 6.00% of tangible assets, compared to 6.07% as of June 30, 2022.

    Conference Call

    As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its third quarter 2022 results today, October 27th, 2022 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. Third Quarter 2022 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 13731490. The telephonic replay will be available until November 3, 2022.

    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 September 30, 2022, our total assets were $7.9 billion, total net loans were $3.8 billion, and total deposits were $7.2 billion. Additionally, as of September 30, 2022, our trust business held $37.6 billion in assets under custody and $12.5 billion in assets under management.

    Non-GAAP Financial Measures

    This release (and the accompanying financial information and tables) refers to certain non-GAAP financial measures including, without limitation, “Core operating revenue,” “Core operating revenue excluding solar tax impact,” “Core non-interest expense,” “Core net income,” “Core net income excluding solar tax impact,” “Tangible common equity,” “Average tangible common equity,” “Core return on average assets,” “Core return on average assets excluding solar tax impact,” “Core return on average tangible common equity,” “Core return on average tangible common equity excluding solar tax impact,” “Core efficiency ratio,” and “Core efficiency ratio excluding solar tax impact.”

    Our management utilizes this information to compare our operating performance for September 30, 2022 versus certain periods in 2022 and 2021 and to prepare internal projections. We believe these non-GAAP financial measures facilitate making 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 operating revenue” is defined as total net interest income plus “core non-interest income”, defined as non-interest income excluding gains and losses on sales of securities and gains on the sale of owned property. We believe the most directly comparable GAAP financial measure is the total of net interest income and non-interest income.

    “Core operating revenue excluding solar tax impact” is defined as total net interest income plus non-interest income excluding gains and losses on sales of securities, gains on the sale of owned property, and tax credits and depreciation on solar equity investments. We believe the most directly comparable GAAP financial measure is the total of net interest income and non-interest 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 net income” is defined as net income after tax excluding gains and losses on sales of securities, gains on the sale of owned property, costs related to branch closures, restructuring/severance costs, acquisition costs, and taxes on notable pre-tax items. We believe the most directly comparable GAAP financial measure is net income.

    “Core net income excluding solar tax impact” is defined as net income after tax excluding gains and losses on sales of securities, gains on the sale of owned property, costs related to branch closures, restructuring/severance costs, acquisition costs, tax credits and depreciation on solar equity investments, and taxes on notable pre-tax items. We believe the most directly comparable GAAP financial measure is net income.

    “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.

    “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 assets excluding solar tax impact” is defined as “Core net income excluding solar tax impact” 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.

    “Core return on average tangible common equity excluding solar tax impact” is defined as “Core net income excluding solar tax impact” 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.

    “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 efficiency ratio excluding solar tax impact” is defined as “Core non-interest expense” divided by “Core operating revenue excluding solar tax impact.” 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.

    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,” “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) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (ii) continued fluctuation of the interest rate environment; (iii) our inability to maintain the historical growth rate of the loan portfolio; (iv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (v) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on our results, including as a result of compression to net interest margin; (vi) greater than anticipated adverse conditions in the national or local economies including in our core markets, which may have an adverse impact on our business, operations and performance, and could have a negative impact on our credit portfolio, share price, and borrowers; (vii) fluctuations or unanticipated changes in interest rates on loans or deposits or that affect the yield curve; (viii) any matter that would cause us to conclude that there was impairment of any asset, including intangible assets; (ix) the results of regulatory examinations; (x) potential deterioration in real estate values; (xi) changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action; (xii) the risk that the preliminary financial information reported herein and our current preliminary analysis will be different when our review is finalized; (xiii) increased competition for experienced executives in the banking industry; (xiv) 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; and (xv) the outcome of any legal proceedings that may be instituted against us in connection with the termination of the merger agreement with Amalgamated Bank of Chicago. 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

    Consolidated Statements of Income (unaudited)

     Three Months Ended Nine Months Ended
     September 30, June 30, September 30, September 30,
    ($ in thousands)2022 2022 2021 2022 2021
    INTEREST AND DIVIDEND INCOME         
    Loans$38,264  $33,766  $29,915  $103,157  $91,180 
    Securities 31,580   24,352   14,655   75,087   40,008 
    Interest-bearing deposits in banks 971   551   230   1,701   451 
    Total interest and dividend income 70,815   58,669   44,800   179,945   131,639 
    INTEREST EXPENSE         
    Deposits 2,491   1,481   1,413   5,374   4,416 
    Borrowed funds 696   690      2,077    
    Total interest expense 3,187   2,171   1,413   7,451   4,416 
    NET INTEREST INCOME 67,628   56,498   43,387   172,494   127,223 
    Provision for (recovery of) loan losses 5,363   2,912   (2,276)  10,568   (3,855)
    Net interest income after provision for loan losses 62,265   53,586   45,663   161,926   131,078 
    NON-INTEREST INCOME         
    Trust Department fees 3,872   3,479   3,353   10,842   10,471 
    Service charges on deposit accounts 2,735   2,826   2,466   8,008   6,941 
    Bank-owned life insurance 785   1,283   539   2,882   1,858 
    Gain (loss) on sale of securities (1,844)  (582)  413   (2,264)  755 
    Gain (loss) on sale of loans, net (367)  492   280   (32)  1,706 
    Gain (loss) on other real estate owned, net             (407)
    Equity method investments (1,151)  (638)  (483)  (1,357)  (5,720)
    Other 973   386   134   1,592   424 
    Total non-interest income 5,003   7,246   6,702   19,671   16,028 
    NON-INTEREST EXPENSE         
    Compensation and employee benefits 19,527   18,046   17,482   55,242   52,485 
    Occupancy and depreciation 3,481   3,457   3,440   10,378   10,293 
    Professional fees 3,173   2,745   2,348   8,733   9,219 
    Data processing 4,149   4,327   4,521   13,660   10,848 
    Office maintenance and depreciation 807   784   887   2,316   2,362 
    Amortization of intangible assets 262   261   301   785   905 
    Advertising and promotion 795   761   1,023   2,410   2,248 
    Other 4,064   3,965   3,032   11,477   8,863 
    Total non-interest expense 36,258   34,346   33,034   105,001   97,223 
    Income before income taxes 31,010   26,486   19,331   76,596   49,883 
    Income tax expense (benefit) 8,066   6,873   4,915   19,874   12,870 
    Net income$22,944  $19,613  $14,416  $56,722  $37,013 
    Earnings per common share - basic$0.75  $0.64  $0.46  $1.84  $1.19 
    Earnings per common share - diluted$0.74  $0.63  $0.46  $1.82  $1.17 
                        

    Consolidated Statements of Financial Condition

    ($ in thousands)September 30,
    2022
     December 31,
    2021
    Assets(unaudited)  
    Cash and due from banks$3,404  $8,622 
    Interest-bearing deposits in banks 62,819   321,863 
    Total cash and cash equivalents 66,223   330,485 
    Securities:   
    Available for sale, at fair value (amortized cost of $2,087,187 and $2,103,049, respectively) 1,957,486   2,113,410 
    Held-to-maturity (fair value of $1,369,383 and $849,704, respectively) 1,492,423   843,569 
    Loans held for sale 17,916   3,279 
    Loans receivable, net of deferred loan origination costs (fees) 3,871,290   3,312,224 
    Allowance for loan losses (42,122)  (35,866)
    Loans receivable, net 3,829,168   3,276,358 
        
    Resell agreements 192,834   229,018 
    Accrued interest and dividends receivable 34,767   28,820 
    Premises and equipment, net 10,539   11,735 
    Bank-owned life insurance 105,915   107,266 
    Right-of-use lease asset 29,991   33,115 
    Deferred tax asset 64,046   26,719 
    Goodwill 12,936   12,936 
    Other intangible assets 3,366   4,151 
    Equity investments 7,683   6,856 
    Other assets 42,924   50,159 
    Total assets$7,868,217  $7,077,876 
    Liabilities   
    Deposits$7,160,307  $6,356,255 
    Subordinated debt 77,679   83,831 
    Borrowed funds 75,000    
    Operating leases 43,229   48,160 
    Other liabilities 24,264   25,755 
    Total liabilities 7,380,479   6,514,001 
        
    Stockholders’ equity   
    Common stock, par value $.01 per share (70,000,000 shares authorized; 30,672,303 and 31,130,143 shares issued and outstanding, respectively) 307   311 
    Additional paid-in capital 286,431   297,975 
    Retained earnings 308,743   260,047 
    Accumulated other comprehensive income (loss), net of income taxes (107,876)  5,409 
    Total Amalgamated Financial Corp. stockholders' equity 487,605   563,742 
    Noncontrolling interests 133   133 
    Total stockholders' equity 487,738   563,875 
    Total liabilities and stockholders’ equity$7,868,217  $7,077,876 
            

    Select Financial Data

     As of and for the As of and for the
     Three Months Ended Nine Months Ended
     September 30, June 30, September 30, September 30,
    (Shares in thousands)2022 2022 2021 2022 2021
    Selected Financial Ratios and Other Data:         
    Earnings per share         
    Basic$0.75 $0.64 $0.46 $1.84 $1.19
    Diluted 0.74  0.63  0.46  1.82  1.17
    Core net income (non-GAAP)         
    Basic$0.78 $0.66 $0.46 $1.90 $1.20
    Diluted 0.77  0.65  0.46  1.87  1.19
              
    Basic$0.81 $0.68 $0.48 $1.95 $1.36
    Diluted 0.80  0.67  0.48  1.92  1.34
    Book value per common share (excluding minority interest)$15.90 $16.23 $17.89 $15.90 $17.89
    Tangible book value per share (non-GAAP)$15.37 $15.69 $17.33 $15.37 $17.33
    Common shares outstanding 30,672  30,684  31,097  30,672  31,097
    Weighted average common shares outstanding, basic 30,673  30,818  31,094  30,864  31,216
    Weighted average common shares outstanding, diluted 31,032  31,189  31,462  31,223  31,584
                   

    Select Financial Data

     As of and for the As of and for the
     Three Months Ended Nine Months Ended
     September 30, June 30, September 30, September 30,
     2022 2022 2021 2022 2021
    Selected Performance Metrics:         
    Return on average assets1.15% 1.01% 0.86% 0.98% 0.77%
    Core return on average assets (non-GAAP)1.19% 1.05% 0.86% 1.02% 0.78%
    Core return on average assets excluding solar tax impact (non-GAAP)1.24% 1.08% 0.90% 1.04% 0.88%
    Return on average equity17.79% 15.20% 10.29% 14.32% 9.02%
    Core return on average tangible common equity (non-GAAP)19.11% 16.25% 10.62% 15.25% 9.46%
    Core return on average tangible common equity excluding solar tax impact (non-GAAP)19.88% 16.76% 11.05% 15.65% 10.65%
    Average equity to average assets6.44% 6.67% 8.38% 6.88% 8.55%
    Tangible common equity to tangible assets6.00% 6.07% 7.88% 6.00% 7.88%
    Loan yield4.11% 3.86% 3.84% 3.95% 3.83%
    Securities yield3.35% 2.66% 2.19% 2.82% 2.17%
    Deposit cost0.14% 0.08% 0.09% 0.10% 0.10%
    Net interest margin3.50% 3.03% 2.70% 3.11% 2.77%
    Efficiency ratio (1)49.92% 53.88% 65.95% 54.64% 67.87%
    Core efficiency ratio (non-GAAP)49.09% 52.90% 65.71% 53.80% 67.19%
    Core efficiency ratio excluding solar tax impact (non-GAAP)48.24% 52.20% 64.67% 53.22% 64.30%
              
    Asset Quality Ratios:         
    Nonaccrual loans to total loans0.51% 0.67% 1.46% 0.51% 1.46%
    Nonperforming assets to total assets0.69% 0.82% 0.99% 0.69% 0.99%
    Allowance for loan losses to nonaccrual loans212.51% 161.81% 78.83% 212.51% 78.83%
    Allowance for loan losses to total loans1.09% 1.08% 1.15% 1.09% 1.15%
    Annualized net charge-offs (recoveries) to average loans0.29% 0.11% -0.02% 0.16% 0.08%
              
    Capital Ratios:         
    Tier 1 leverage capital ratio7.16% 7.08% 7.85% 7.16% 7.85%
    Tier 1 risk-based capital ratio11.91% 11.75% 13.98% 11.91% 13.98%
    Total risk-based capital ratio14.43% 14.41% 14.99% 14.43% 14.99%
    Common equity tier 1 capital ratio11.91% 11.75% 13.98% 11.91% 13.98%
              
    (1) Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income
     

    Loan and Held-to-Maturity Securities Portfolio Composition

    (In thousands)At September 30, 2022 At June 30, 2022 At September 30, 2021
     Amount % of total loans Amount % of total loans Amount % of total loans
    Commercial portfolio:           
    Commercial and industrial$805,087  20.8% $743,403  20.4% $628,388  20.2%
    Multifamily 884,790  22.9%  853,514  23.4%  826,143  26.5%
    Commercial real estate 338,002  8.7%  340,987  9.4%  346,996  11.1%
    Construction and land development 38,946  1.0%  43,212  1.2%  34,863  1.1%
    Total commercial portfolio 2,066,825  53.4%  1,981,116  54.4%  1,836,390  58.9%
                
    Retail portfolio:           
    Residential real estate lending 1,332,010  34.5%  1,236,088  33.9%  1,032,947  33.1%
    Consumer and other 467,793  12.1%  426,394  11.7%  249,050  8.0%
    Total retail 1,799,803  46.6%  1,662,482  45.6%  1,281,997  41.1%
    Total loans held for investment 3,866,628  100.0%  3,643,598  100.0%  3,118,387  100.0%
                
    Net deferred loan origination costs (fees) 4,662     4,806     4,942   
    Allowance for loan losses (42,122)    (39,477)    (35,863)  
    Total loans, net$3,829,168    $3,608,927    $3,087,466   
                
    Held-to-maturity securities portfolio:           
    PACE assessments$856,701  57.4% $742,146  53.9% $627,195  86.5%
    Other securities 635,722  42.6%  633,520  46.1%  97,881  13.5%
    Total held-to-maturity securities$1,492,423  100.0% $1,375,666  100.0% $725,076  100.0%
                         

    Net Interest Income Analysis

     Three Months Ended
     September 30, 2022 June 30, 2022 September 30, 2021
    (In thousands)Average
    Balance
    Income / ExpenseYield /
    Rate
     Average
    Balance
    Income / ExpenseYield /
    Rate
     Average
    Balance
    Income / ExpenseYield /
    Rate
                      
    Interest earning assets:                 
    Interest-bearing deposits in banks$222,071 $971 1.73% $305,134 $551 0.72% $632,526 $230 0.14%
    Securities 3,522,863  29,735 3.35%  3,443,987  23,308 2.71%  2,545,703  14,192 2.21%
    Resell agreements 232,956  1,845 3.14%  231,468  1,044 1.81%  114,100  463 1.61%
    Total loans, net (1)(2) 3,693,688  38,264 4.11%  3,504,223  33,766 3.86%  3,087,744  29,915 3.84%
    Total interest earning assets 7,671,578  70,815 3.66%  7,484,812  58,669 3.14%  6,380,073  44,800 2.79%
    Non-interest earning assets:                 
    Cash and due from banks 4,783      9,296      8,464    
    Other assets 265,736      266,186      243,969    
    Total assets$7,942,097     $7,760,294     $6,632,506    
                      
    Interest bearing liabilities:                 
    Savings, NOW and money market deposits$3,031,402 $2,329 0.30% $3,030,788 $1,332 0.18% $2,641,719 $1,173 0.18%
    Time deposits 184,476  162 0.35%  192,181  149 0.31%  241,009  240 0.40%
    Total deposits 3,215,878  2,491 0.31%  3,222,969  1,481 0.18%  2,882,728  1,413 0.19%
    Other borrowings 85,323  696 3.24%  83,886  690 3.30%     0.00%
    Total interest bearing liabilities 3,301,201  3,187 0.38%  3,306,855  2,171 0.26%  2,882,728  1,413 0.19%
    Non-interest bearing liabilities:                 
    Demand and transaction deposits 4,053,953      3,855,735      3,077,231    
    Other liabilities 75,143      80,274      116,790    
    Total liabilities 7,430,297      7,242,864      6,076,749    
    Stockholders' equity 511,800      517,430      555,757    
    Total liabilities and stockholders' equity$7,942,097     $7,760,294     $6,632,506    
                      
    Net interest income / interest rate spread  $67,628 3.28%   $56,498 2.88%   $43,387 2.60%
    Net interest earning assets / net interest margin$4,370,377   3.50% $4,177,957   3.03% $3,497,345   2.70%
                      
    Total Cost of Deposits    0.14%     0.08%     0.09%

    (1) Amounts are net of deferred origination costs (fees) and the allowance for loan losses
    (2) Includes prepayment penalty interest income in 3Q2022, 2Q2022, and 3Q2021 of $800, $379, and $169, respectively (in thousands)

    Net Interest Income Analysis

     Nine Months Ended
     September 30, 2022 September 30, 2021
    (In thousands)Average
    Balance
    Income / ExpenseYield /
    Rate
     Average
    Balance
    Income / ExpenseYield /
    Rate
                
    Interest earning assets:           
    Interest-bearing deposits in banks$316,288 $1,701 0.72% $508,421 $451 0.12%
    Securities 3,387,707  71,477 2.82%  2,321,979  38,643 2.23%
    Resell agreements 227,932  3,610 2.12%  138,967  1,365 1.31%
    Total loans, net (1)(2) 3,493,405  103,157 3.95%  3,180,890  91,180 3.83%
    Total interest earning assets 7,425,332  179,945 3.24%  6,150,257  131,639 2.86%
    Non-interest earning assets:           
    Cash and due from banks 7,752      7,780    
    Other assets 267,315      263,170    
    Total assets$7,700,399     $6,421,207    
                
    Interest bearing liabilities:           
    Savings, NOW and money market deposits$2,986,588 $4,908 0.22% $2,574,463 $3,568 0.19%
    Time deposits 191,944  466 0.32%  259,609  848 0.44%
    Total deposits 3,178,532  5,374 0.23%  2,834,072  4,416 0.21%
    Other borrowings 84,604  2,077 3.28%  165   0.00%
    Total interest bearing liabilities 3,263,136  7,451 0.31%  2,834,237  4,416 0.21%
    Non-interest bearing liabilities:           
    Demand and transaction deposits 3,821,571      2,925,516    
    Other liabilities 85,996      112,721    
    Total liabilities 7,170,703      5,872,474    
    Stockholders' equity 529,696      548,733    
    Total liabilities and stockholders' equity$7,700,399     $6,421,207    
                
    Net interest income / interest rate spread  $172,494 2.93%   $127,223 2.65%
    Net interest earning assets / net interest margin$4,162,196   3.11% $3,316,020   2.77%
                
    Total Cost of Deposits    0.10%     0.10%

    (1) Amounts are net of deferred origination costs (fees) and the allowance for loan losses
    (2) Includes prepayment penalty interest income in September YTD 2022 and September YTD 2021 of $1.6 million and $1.3 million, respectively

    Deposit Portfolio Composition

    (In thousands)September 30, 2022 June 30, 2022 September 30, 2021
          
    Non-interest bearing demand deposit accounts$3,839,155 $3,965,907 $3,189,155
    NOW accounts 204,473  208,795  206,610
    Money market deposit accounts 2,549,024  2,540,657  2,241,914
    Savings accounts 384,644  388,185  364,568
    Time deposits 183,011  187,623  222,259
    Total deposits$7,160,307 $7,291,167 $6,224,506
             


     Three Months Ended
     September 30, 2022 June 30, 2022 September 30, 2021
    (In thousands)Average
    Balance
     Average Rate Paid Average
    Balance
     Average Rate Paid Average
    Balance
     Average Rate Paid
                
    Non-interest bearing demand deposit accounts$4,053,953 0.00% $3,855,735 0.00% $3,077,231 0.00%
    NOW accounts 210,972 0.19%  211,007 0.09%  205,417 0.09%
    Money market deposit accounts 2,437,920 0.33%  2,431,571 0.19%  2,066,830 0.20%
    Savings accounts 382,510 0.19%  388,210 0.11%  369,472 0.10%
    Time deposits 184,476 0.35%  192,181 0.31%  241,009 0.40%
    Total deposits$7,269,831 0.14% $7,078,704 0.08% $5,959,959 0.09%
                      

    Asset Quality

    (In thousands)September 30, 2022 June 30, 2022 September 30, 2021
    Loans 90 days past due and accruing$  $  $ 
    Nonaccrual loans held for sale 5,858   4,841    
    Troubled debt restructured loans - accruing loans held for sale 10,179       
    Nonaccrual loans excluding held for sale loans and restructured loans 7,499   8,109   24,960 
    Troubled debt restructured loans - nonaccrual 12,322   16,288   20,534 
    Troubled debt restructured loans - accruing 18,396   35,683   21,958 
    Other real estate owned    307   307 
    Impaired securities 37   56   64 
    Total nonperforming assets$54,291  $65,284  $67,823 
          
    Nonaccrual loans:     
    Commercial and industrial$9,356  $9,550  $13,709 
    Multifamily 3,494   3,494   6,079 
    Commercial real estate 4,914   3,931   4,023 
    Construction and land development    5,053    
    Total commercial portfolio 17,764   22,028   23,811 
          
    Residential real estate lending 675   898   20,797 
    Consumer and other 1,382   1,471   886 
    Total retail portfolio 2,057   2,369   21,683 
    Total nonaccrual loans$19,821  $24,397  $45,494 
          
    Nonaccrual loans to total loans 0.51%  0.67%  1.46%
    Nonperforming assets to total assets 0.69%  0.82%  0.99%
    Allowance for loan losses to nonaccrual loans 212.51%  161.81%  78.83%
    Allowance for loan losses to total loans 1.09%  1.08%  1.15%
    Annualized net charge-offs (recoveries) to average loans 0.29%  0.11%  -0.02%
                

    Credit Quality

     September 30, 2022
    ($ in thousands)Pass Special Mention Substandard Doubtful Total
    Commercial and industrial$778,331 $7,797 $17,213 $1,746 $805,087
    Multifamily 842,685  23,866  18,239    884,790
    Commercial real estate 298,374  20,948  18,680    338,002
    Construction and land development 36,522    2,424    38,946
    Residential real estate lending 1,331,335    675    1,332,010
    Consumer and other 466,411    1,382    467,793
    Total loans$3,753,658 $52,611 $58,613 $1,746 $3,866,628
                   


     June 30, 2022
    ($ in thousands)Pass Special Mention Substandard Doubtful Total
    Commercial and industrial$710,534 $7,923 $24,946 $ $743,403
    Multifamily 800,167  25,433  27,914    853,514
    Commercial real estate 301,243  20,966  18,778    340,987
    Construction and land development 35,736    7,476    43,212
    Residential real estate lending 1,235,190    898    1,236,088
    Consumer and other 424,923    1,471    426,394
    Total loans$3,507,793 $54,322 $81,483 $ $3,643,598
                   


     September 30, 2021
    ($ in thousands)Pass Special Mention Substandard Doubtful Total
    Commercial and industrial$579,429 $22,655 $25,850 $454 $628,388
    Multifamily 696,898  83,851  42,221  3,173  826,143
    Commercial real estate 243,903  26,815  76,278    346,996
    Construction and land development 27,387    7,476    34,863
    Residential real estate lending 1,011,856  294  20,797    1,032,947
    Consumer and other 248,164    886    249,050
    Total loans$2,807,637 $133,615 $173,508 $3,627 $3,118,387
                   

    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 Nine Months Ended
    (in thousands)September 30, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
    Core operating revenue         
    Net Interest income (GAAP)$67,628  $56,498  $43,387  $172,494  $127,223 
    Non-interest income 5,003   7,246   6,702   19,671   16,028 
    Less: Securities (gain) loss 1,844   582   (413)  2,264   (755)
    Less: Subdebt repurchase (gain) loss (617)        (617)   
    Core operating revenue (non-GAAP) 73,858   64,326   49,676   193,812   142,496 
    Add: Tax (credits) depreciation on solar investments 1,306   862   796   2,105   6,393 
    Core operating revenue excluding solar tax impact (non-GAAP) 75,164   65,188   50,472   195,917   148,889 
              
    Core non-interest expense         
    Non-interest expense (GAAP)$36,258  $34,346  $33,034  $105,001  $97,224 
    Less: Other one-time expenses(1)    (316)  (392)  (738)  (1,482)
    Core non-interest expense (non-GAAP) 36,258   34,030   32,642   104,263   95,742 
              
    Core net income         
    Net Income (GAAP)$22,944  $19,613  $14,416  $56,722  $37,013 
    Less: Securities (gain) loss 1,844   582   (413)  2,264   (755)
    Less: Subdebt repurchase (gain) loss (617)        (617)   
    Add: Other one-time expenses    316   392   738   1,482 
    Less: Tax on notable items (319)  (233)  5   (619)  (188)
    Core net income (non-GAAP) 23,852   20,278   14,400   58,488   37,552 
    Add: Tax (credits) depreciation on solar investments 1,306   862   796   2,105   6,393 
    Add: Tax effect of solar income (340)  (224)  (202)  (546)  (1,649)
    Core net income excluding solar tax impact (non-GAAP) 24,818   20,916   14,994   60,047   42,296 
              
    Tangible common equity         
    Stockholders' equity (GAAP)$487,738  $498,041  $556,390  $487,738  $556,390 
    Less: Minority interest (133)  (133)  (133)  (133)  (133)
    Less: Goodwill (12,936)  (12,936)  (12,936)  (12,936)  (12,936)
    Less: Core deposit intangible (3,366)  (3,628)  (4,453)  (3,366)  (4,453)
    Tangible common equity (non-GAAP) 471,303   481,344   538,868   471,303   538,868 
              
    Average tangible common equity         
    Average stockholders' equity (GAAP)$511,800  $517,430  $555,757  $529,696  $548,733 
    Less: Minority interest (133)  (133)  (133)  (133)  (133)
    Less: Goodwill (12,936)  (12,936)  (12,936)  (12,936)  (12,936)
    Less: Core deposit intangible (3,494)  (3,755)  (4,602)  (3,754)  (4,900)
    Average tangible common equity (non-GAAP) 495,237   500,606   538,086   512,873   530,764 
              
    Core return on average assets         
    Denominator: Total average assets 7,942,097   7,760,294   6,632,506   7,700,399   6,421,208 
    Core return on average assets (non-GAAP) 1.19%  1.05%  0.86%  1.02%  0.78%
    Core return on average assets excluding solar tax impact (non-GAAP) 1.24%  1.08%  0.90%  1.04%  0.88%
              
    Core return on average tangible common equity         
    Denominator: Average tangible common equity 495,237   500,606   538,086   512,873   530,764 
    Core return on average tangible common equity (non-GAAP) 19.11%  16.25%  10.62%  15.25%  9.46%
    Core return on average tangible common equity excluding solar tax impact (non-GAAP) 19.88%  16.76%  11.05%  15.65%  10.65%
              
    Core efficiency ratio         
    Numerator: Core non-interest expense (non-GAAP)$36,258  $34,030  $32,642  $104,263  $95,742 
    Core efficiency ratio (non-GAAP) 49.09%  52.90%  65.71%  53.80%  67.19%
    Core efficiency ratio excluding solar tax impact (non-GAAP) 48.24%  52.20%  64.67%  53.22%  64.30%

    (1) Salary and COBRA reimbursement expense for positions eliminated, plus expenses related to the termination of the merger agreement with Amalgamated Bank of Chicago

    ___________________________________
    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.


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