• Amalgamated Financial Corp. Reports First Quarter 2022 Financial Results

    来源: Nasdaq GlobeNewswire / 28 4月 2022 05:25:01   America/Chicago

    NEW YORK, April 28, 2022 (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 first quarter ended March 31, 2022.

    First Quarter 2022 Highlights

    • Net income of $14.2 million, or $0.45 per diluted share, as compared to $15.9 million, or $0.50 per diluted share, on a linked quarter basis.
    • Excluding the tax credit or accelerated depreciation impact of our solar tax equity investments, core net income was $14.3 million or $0.45 per diluted share as compared to $12.7 million or $0.40 on a linked quarter basis.
    • Deposits increased $617.2 million to $7.0 billion and political deposits increased by $159.9 million to $1.1 billion on a linked quarter basis.
    • Industry leading cost of deposits was 0.09%, where non-interest bearing deposits comprised 54% of total deposits.
    • Loans, including net deferred costs increased $158.0 million, or 4.8%, to $3.4 billion, on a linked quarter basis.
    • PACE assessments grew $96.2 million to $723.6 million on a linked quarter basis, comprised of a $75.5 million increase in residential and a $20.7 million increase in commercial.
    • Net interest income grew $1.3 million to $48.4 million as compared to $47.1 million, while the net interest margin remained consistent at 2.76%, compared to 2.77%, each on a linked quarter basis.
    • Credit quality improved with criticized assets declining $51.6 million, or 22.3%, to $179.3 million on a linked quarter basis and by $155.0 million, or 46.4%, on a year over year basis.
    • Repurchased approximately 163,500 shares, or $2.8 million of common stock under our previously announced $40 million share repurchase program.
    • Regulatory capital remained above “well capitalized” standards.

    Priscilla Sims Brown, President and Chief Executive Officer, commented, “Our first quarter results demonstrate continued momentum for Amalgamated’s socially responsible product portfolio, as we continue to execute on the four pillars of our “Growth For Good” strategy. We achieved loan growth of 4.8% while emphasizing responsible lending to quality creditors. We continue to invest in our lending platform to meet rising demand for the services we provide to change-makers and organizations that are focused on sustainability, economic justice, community financing and other social causes. We are confident we will deliver high-single-digit loan growth in 2022 and sustained profitability.” She continued, “As we progress through 2022, we expect to further improve performance metrics and valuation through prudent use of capital and a focus on shareholder returns. We believe our balance sheet is well positioned to capitalize on the current rising interest rate environment and our industry leading low cost deposit franchise enables us to drive incremental net interest income and profitability.”

    Results of Operations, Quarter Ended March 31, 2022

    Net income for the first quarter of 2022 was $14.2 million, or $0.45 per diluted share, compared to $15.9 million, or $0.50 per diluted share, for the fourth quarter of 2021 and $12.2 million, or $0.39 per diluted share, for the first quarter of 2021. The $1.7 million decrease for the first quarter of 2022 from the preceding quarter was primarily the result of the $5.0 million decrease in non-interest income reflecting reduced tax credits on solar equity investments in the first quarter, partially offset by a $1.3 million increase in net interest income, a $1.3 million decrease in the provision for loan loss, and a $0.6 million decrease in non-interest expense.

    Core net income (non-GAAP)1 for the first quarter of 2022 was $14.4 million, or $0.46 per diluted share, compared to $16.8 million, or $0.53 per diluted share, for the fourth quarter of 2021 and $13.0 million, or $0.41 per diluted share, for the first quarter of 2021. Excluded from core net income for the first quarter of 2022 was $0.2 million of non-interest income gains on the sale of securities and $0.4 million of non-interest expenses related to the now-terminated planned merger with Amalgamated Bank of Chicago (“ABOC”), and for the fourth quarter of 2021 was $0.1 million of non-interest income losses on the sale of securities and $0.9 million of non-interest expenses related to ABOC. Excluded from core net income for the first quarter of 2021 was $1.1 million of severance expenses related to the modernization of our Trust department and its related tax impact.

    Core net income excluding the effect of tax credits and accelerated deprecation from our solar investments (non-GAAP) for the first quarter of 2022 was $14.3 million, or $0.45 per diluted share, compared to $12.7 million or $0.40 per diluted share, for the fourth quarter of 2021 and $15.9 million, or $0.50 per diluted share, for the first quarter of 2021. Excluded from the results was $0.1 million of tax credits (recorded as Equity method non-interest income) for the first quarter of 2022, $5.3 million of tax credits in the fourth quarter of 2021, and $3.8 million of accelerated depreciation (recorded as Equity method non-interest contra income) in the first quarter of 2021. Presentation of the exclusion of the temporary effect of these items reduces the financial statement volatility associated with these investments.

    Net interest income was $48.4 million for the first quarter of 2022, compared to $47.1 million for the fourth quarter of 2021 and $41.8 million for the first quarter of 2021. The $1.3 million increase from the preceding quarter mainly reflected higher income on securities, offset by a decrease in interest income on loans despite average loan balances being up quarter over quarter due to the timing of the loan originations. Adjusted for a $1.0 million one-time recapture of interest income on a reinstated loan recognized in the fourth quarter of 2021, loan interest income was flat on a linked quarter basis. The $6.6 million increase from the first quarter of 2021 was primarily attributable to an increase in average securities of $1.1 billion as well as higher yields from our PACE asset originations during the year.

    Net interest margin was 2.76% for the first quarter of 2022, a decrease of one basis point from 2.77% in the fourth quarter of 2021, and a decrease of nine basis points from 2.85% in the first quarter of 2021. Prepayment penalties earned in loan income contributed three basis points to our net interest margin in the first quarter of 2022, compared to two basis points in the fourth quarter of 2021 and four basis points in the first quarter of 2021.

    Provision for loan losses totaled an expense of $2.3 million for the first quarter of 2022 compared to an expense of $3.6 million in the fourth quarter of 2022 and a recovery of $3.3 million for the first quarter of 2021. The expense in the first quarter of 2022 was primarily driven by higher loan balances, and a $0.4 million charge-off related to a loan that was transferred to held for sale, partially offset by improved credit quality.

    Non-interest income was $7.4 million for the first quarter of 2022, compared to $12.4 million in the fourth quarter of 2021 and $4.0 million for the first quarter in 2021. The $5.0 million decrease compared to the preceding quarter was primarily driven by the tax credits on solar equity investments in the prior quarter. The $3.4 million increase compared to the corresponding quarter in 2021 was primarily due to a gain of $0.4 million related to equity investments in solar initiatives in the first quarter of 2022 compared to a $3.8 million loss in the first quarter in 2021. This is due to the timing of tax credits and subsequent losses generated before reaching a steady flow of income. These impacts do not include any benefits of new solar equity investments that we may make in the future.

    Core non-interest income excluding the effect of tax credits and accelerated deprecation from our solar investments (non-GAAP) for the first quarter of 2022 was $7.4 million, compared to $7.0 million for the fourth quarter of 2021 and $7.8 million, for the first quarter of 2021. Excluded from the results was $0.1 million of tax credits (recorded as Equity method non-interest income) for the first quarter of 2022, $5.3 million of tax credits in the fourth quarter of 2021, and $3.8 million of accelerated depreciation (recorded as Equity method non-interest contra income) in the first quarter of 2021.

    Non-interest expense for the first quarter of 2022 was $34.4 million, a decrease of $0.6 million from the fourth quarter of 2021 and an increase of $1.6 million from the first quarter of 2021. The decrease from the preceding quarter is primarily driven by a $0.5 million decrease in ABOC related costs. The increase from the first quarter of 2021 is primarily driven by a $2.2 million increase in data processing related to the modernization of our Trust Department, offset by decreases in professional fees.

    Our provision for income tax expense was $4.9 million for the first quarter of 2022, compared to $4.9 million for the fourth quarter of 2021 and $4.1 million for the first quarter of 2021. Our effective tax rate for the first quarter of 2022 was 25.8%, compared to 23.6% for the fourth quarter of 2021 and 25.4% for the first quarter of 2021.

    Financial Condition

    Total assets were $7.7 billion at March 31, 2022, compared to $7.1 billion at December 31, 2021. The increase of $0.6 billion was driven primarily by a $43.6 million increase in cash and cash equivalents, a $410.4 million increase in investment securities, of which $96.2 million was from PACE assessments, as well as a $158.0 million increase in loans receivable, net.

    Total loans, including net deferred costs at March 31, 2022 were $3.4 billion, an increase of $158.0 million, compared to December 31, 2021. The increase in loans was primarily driven by a $79.5 million increase in residential loans mainly from direct originations and a $97.6 million increase in our consumer and other loans, primarily driven by solar loan originations from existing flow arrangements, offset by a combined $19.9 million decrease in the commercial portfolio as payoffs exceeded originations. The volume of payoffs is a result of our continued focus on credit quality improvement in the commercial portfolio with $20.3 million of payoffs from criticized loans in addition to certain other pass grade loans.

    Deposits at March 31, 2022 were $7.0 billion, an increase of $617.2 million, as compared to $6.4 billion as of December 31, 2021. Deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $1.1 billion as of March 31, 2022, an increase of $159.9 million compared to $989.6 million as of December 31, 2021. Noninterest-bearing deposits represent 53% of average deposits and 54% of ending deposits for the quarter ended March 31, 2022, contributing to an average cost of deposits of 0.09% in the first quarter of 2022, representing no change from the preceding quarter.

    Nonperforming assets totaled $61.1 million, or 0.80% of period-end total assets at March 31, 2022, an increase of $6.5 million, compared with $54.6 million, or 0.77% of period-end total assets at December 31, 2021. The increase in non-performing assets at March 31, 2022 compared to December 31, 2021 was primarily driven by a multi-loan new troubled debt restructuring totaling $10.5 million from the same borrower relationship, offset by a $5.1 million decrease in residential nonaccrual loans. While nonperforming assets increased, overall credit quality improved with criticized assets declining $51.6 million, or 22.3%, to $179.3 million on a linked quarter basis and by $155.0 million, or 46.4%, on a year over year basis.

    The allowance for loan losses increased $1.6 million to $37.5 million at March 31, 2022 from $35.9 million at December 31, 2021, primarily due to an increase in loan balances. At March 31, 2022, we had $58.2 million of impaired loans for which a specific allowance of $4.6 million was made, compared to $53.2 million of impaired loans at December 31, 2021 for which a specific allowance of $5.1 million was made. The ratio of allowance to total loans was 1.08% at March 31, 2022 and 1.08% at December 31, 2021.

    Capital

    As of March 31, 2022, our Common Equity Tier 1 Capital Ratio was 12.36%, Total Risk-Based Capital Ratio was 15.16%, and Tier-1 Leverage Capital Ratio was 7.34%, compared to 12.98%, 15.95% and 7.62%, respectively, as of December 31, 2021. Stockholders’ equity at March 31, 2022 was $526.8 million, compared to $563.9 million at December 31, 2021. The decrease in stockholders’ equity was primarily driven by a $46.3 million decrease in accumulated other comprehensive income due to the tax effected mark to market on our securities portfolio and a $2.5 million decrease in additional paid-in capital, partially offset by $14.2 million of net income.

    Our tangible book value per share was $16.45 as of March 31, 2022 compared to $17.56 as of December 31, 2021, primarily as a result of a $46.3 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 has no impact on our Tier 1 Capital Ratio or other Risk based ratios.

    Conference Call

    As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its first quarter 2022 results today, April 28th, 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. First 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 13728266. The telephonic replay will be available until May 5, 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 http://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 http://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 March 31, 2022, our total assets were $7.7 billion, total net loans were $3.4 billion, and total deposits were $7.0 billion. Additionally, as of March 31, 2022, our trust business held $39.7 billion in assets under custody and $15.1 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 non-interest expense,” “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 March 31, 2022 versus certain periods in 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 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 non-interest expense” is defined as total non-interest expense excluding costs related to any branch closures and restructuring/severance costs. 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 any branch closures, restructuring/severance costs, any acquisition costs, 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 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 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.

    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, and in this release include statements related to future loss/income (including projected non-interest income) of solar tax equity investments. 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) continuation of the historically low short-term 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, including, but not limited to, the negative impacts and disruptions resulting from the outbreak of the novel coronavirus, or COVID-19, which may continue to have an adverse impact on our business, operations and performance, and could continue to have a negative impact on our credit portfolio, share price, borrowers, and on the economy as a whole, both domestically and globally; (vii) fluctuations or unanticipated changes in interest rates on loans or deposits or that affect the yield curve; (viii) the results of regulatory examinations; (ix) potential deterioration in real estate values; (x) changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action; (xi) the risk that the preliminary financial information reported herein and our current preliminary analysis will be different when our review is finalized; (xii) increased competition for experienced executives in the banking industry; (xiii) potential adverse reactions or changes to business or employee relationships, including those resulting from the termination of the merger agreement with ABOC; and (xix) the outcome of any legal proceedings that may be instituted against us in connection with the termination of the merger agreement with ABOC. 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 Trout
    shareholderrelations@amalgamatedbank.com
    800-895-4172

    Consolidated Statements of Income (unaudited)

     Three Months Ended
     March 31, December 31, March 31,
    (In thousands) 2022   2021   2021 
    INTEREST AND DIVIDEND INCOME     
    Loans$31,127  $32,138  $31,109 
    Securities 19,115   16,511   12,170 
    Federal Home Loan Bank of New York stock 40   38   48 
    Interest-bearing deposits in banks 179   200   90 
    Total interest and dividend income 50,461   48,887   43,417 
    INTEREST EXPENSE     
    Deposits 1,402   1,407   1,573 
    Borrowed funds 691   399   — 
    Total interest expense 2,093   1,806   1,573 
    NET INTEREST INCOME 48,368   47,081   41,844 
    Provision for (recovery of) loan losses 2,293   3,568   (3,261)
    Net interest income after provision for loan losses 46,075   43,513   45,105 
    NON-INTEREST INCOME     
    Trust Department fees 3,491   2,881   3,827 
    Service charges on deposit accounts 2,447   2,414   2,178 
    Bank-owned life insurance 814   530   788 
    Gain (loss) on sale of securities 162   (106)  21 
    Gain (loss) on sale of loans, net (157)  181   707 
    Equity method investments 432   5,870   (3,682)
    Other 233   591   161 
    Total non-interest income 7,422   12,361   4,000 
    NON-INTEREST EXPENSE     
    Compensation and employee benefits 17,669   17,359   18,039 
    Occupancy and depreciation 3,440   3,730   3,501 
    Professional fees 2,815   3,742   3,661 
    Data processing 5,184   5,194   3,005 
    Office maintenance and depreciation 725   695   655 
    Amortization of intangible assets 262   302   302 
    Advertising and promotion 854   982   597 
    Other 3,448   3,028   3,033 
    Total non-interest expense 34,397   35,032   32,793 
    Income before income taxes 19,100   20,842   16,312 
    Income tax expense (benefit) 4,935   4,918   4,123 
    Net income 14,165   15,924   12,189 
    Net income attributable to Amalgamated Financial Corp.$14,165  $15,924  $12,189 
    Earnings per common share - basic$0.46  $0.51  $0.39 
    Earnings per common share - diluted$0.45  $0.50  $0.39 
                

    Consolidated Statements of Financial Condition

    (In thousands)March 31,
    2022    		 December 31,
    2021
    Assets(unaudited)  
    Cash and due from banks$9,085  $8,622 
    Interest-bearing deposits in banks 364,958   321,863 
    Total cash and cash equivalents 374,043   330,485 
    Securities:   
    Available for sale, at fair value (amortized cost of $2,474,572 and $2,103,049, respectively) 2,421,064   2,113,410 
    Held-to-maturity (fair value of $921,395 and $849,704, respectively) 946,347   843,569 
    Loans held for sale 2,490   3,279 
    Loans receivable, net of deferred loan origination costs (fees) 3,470,174   3,312,224 
    Allowance for loan losses (37,542)  (35,866)
    Loans receivable, net 3,432,632   3,276,358 
        
    Resell agreements 180,150   229,018 
    Accrued interest and dividends receivable 27,409   28,820 
    Premises and equipment, net 11,654   11,735 
    Bank-owned life insurance 106,975   107,266 
    Right-of-use lease asset 33,449   33,115 
    Deferred tax asset 46,149   26,719 
    Goodwill 12,936   12,936 
    Other intangible assets 3,890   4,151 
    Equity investments 7,102   6,856 
    Other assets 47,041   50,159 
    Total assets$7,653,331  $7,077,876 
    Liabilities   
    Deposits$6,973,473  $6,356,255 
    Subordinated Debt 83,870   83,831 
    Operating leases 47,883   48,160 
    Other liabilities 21,343   25,755 
    Total liabilities 7,126,569   6,514,001 
        
    Stockholders’ equity   
    Common stock, par value $.01 per share (70,000,000 shares authorized; 30,995,271 and 31,130,143 shares issued and outstanding, respectively) 310   311 
    Additional paid-in capital 295,443   297,975 
    Retained earnings 271,722   260,047 
    Accumulated other comprehensive income (loss), net of income taxes (40,846)  5,409 
    Total Amalgamated Financial Corp. stockholders' equity 526,629   563,742 
    Noncontrolling interests 133   133 
    Total stockholders' equity 526,762   563,875 
    Total liabilities and stockholders’ equity$7,653,331  $7,077,876 
            

    Select Financial Data

     As of and for the
     Three Months Ended
     March 31, December 31, March 31,
    (Shares in thousands) 2022  2021  2021
    Selected Financial Ratios and Other Data:     
    Earnings     
    Basic$0.46 $0.51 $0.39
    Diluted 0.45  0.50  0.39
    Core net income (non-GAAP)     
    Basic$0.46 $0.54 $0.42
    Diluted 0.46  0.53  0.41
    Core net income excluding solar tax impact (non-GAAP)     
    Basic 0.46  0.41  0.51
    Diluted 0.45  0.40  0.50
    Book value per common share (excluding minority interest) 16.99  18.11  17.33
    Tangible book value per share (non-GAAP) 16.45  17.56  16.75
    Common shares outstanding 30,995  31,130  31,169
    Weighted average common shares outstanding, basic 31,107  31,108  31,082
    Weighted average common shares outstanding, diluted 31,456  31,516  31,524
             

    Select Financial Data

     As of and for the
     Three Months Ended
     March 31, December 31, March 31,
     2022 2021 2021
    Selected Performance Metrics:     
    Return on average assets0.78% 0.90% 0.79%
    Core return on average assets (non-GAAP)0.79% 0.95% 0.85%
    Core return on average assets excluding solar tax impact (non-GAAP)0.79% 0.72% 1.03%
    Return on average equity10.25% 11.23% 9.11%
    Core return on average tangible common equity (non-GAAP)10.72% 12.20% 10.05%
    Core return on average tangible common equity excluding solar tax impact (non-GAAP)10.68% 9.23% 12.27%
    Average equity to average assets7.58% 8.02% 8.71%
    Tangible common equity to tangible assets6.68% 7.74% 8.18%
    Loan yield3.85% 4.01% 3.83%
    Securities yield2.28% 2.18% 2.18%
    Deposit cost0.09% 0.09% 0.11%
    Net interest margin2.76% 2.77% 2.85%
    Efficiency ratio (1)61.65% 58.94% 71.53%
    Core efficiency ratio (non-GAAP) (1)61.07% 57.18% 69.18%
    Core efficiency ratio excluding solar tax impact (non-GAAP)61.14% 62.81% 63.84%
          
    Asset Quality Ratios:     
    Nonaccrual loans to total loans0.84% 0.85% 1.78%
    Nonperforming assets to total assets0.80% 0.77% 1.27%
    Allowance for loan losses to nonaccrual loans129.71% 127.10% 63.32%
    Allowance for loan losses to total loans1.08% 1.08% 1.13%
    Annualized net charge-offs (recoveries) to average loans0.08% 0.44% 0.20%
          
    Capital Ratios:     
    Tier 1 leverage capital ratio7.34% 7.62% 8.06%
    Tier 1 risk-based capital ratio12.36% 12.98% 13.70%
    Total risk-based capital ratio15.16% 15.95% 14.74%
    Common equity tier 1 capital ratio12.36% 12.98% 13.70%
          
    (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 March 31, 2022 At December 31, 2021 At March 31, 2021
     Amount % of total loans Amount % of total loans Amount % of total loans
    Commercial portfolio:           
    Commercial and industrial$724,177  20.9% $729,385  22.0% $612,581  18.8%
    Multifamily 813,702  23.5%  821,801  24.8%  882,231  27.2%
    Commercial real estate 354,174  10.2%  369,429  11.2%  364,308  11.2%
    Construction and land development 40,242  1.2%  31,539  1.0%  50,267  1.5%
    Total commercial portfolio 1,932,295  55.8%  1,952,154  59.0%  1,909,387  58.7%
                
    Retail portfolio:           
    Residential real estate lending 1,143,175  33.0%  1,063,682  32.2%  1,137,851  35.0%
    Consumer and other 389,452  11.2%  291,818  8.8%  206,451  6.3%
    Total retail 1,532,627  44.2%  1,355,500  41.0%  1,344,302  41.3%
    Total loans held for investment 3,464,922  100.0%  3,307,654  100.0%  3,253,689  100.0%
                
    Net deferred loan origination costs (fees) 5,252     4,570     5,815   
    Allowance for loan losses (37,542)    (35,866)    (36,662)  
    Total loans, net$3,432,632    $3,276,358    $3,222,842   
                
    Held-to-maturity securities portfolio:           
    PACE assessments 723,646  76.5%  627,394  74.4%  451,643  85.0%
    Other securities 222,701  23.5%  216,175  25.6%  79,631  15.0%
    Total held-to-maturity securities$946,347  100.0% $843,569  100.0% $531,274  100.0%
                         

    Net Interest Income Analysis

     Three Months Ended
     March 31, 2022 December 31, 2021 March 31, 2021
    (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$423,878 $179 0.17% $561,027 $200 0.14% $380,390 $90 0.10%
    Securities and FHLB stock 3,192,642  18,435 2.34%  2,876,150  15,973 2.20%  2,116,952  11,798 2.26%
    Resell Agreements 219,221  720 1.33%  138,436  576 1.65%  154,266  420 1.10%
    Total loans, net (1)(2) 3,280,115  31,127 3.85%  3,177,729  32,138 4.01%  3,293,775  31,109 3.83%
    Total interest earning assets 7,115,856  50,461 2.88%  6,753,342  48,887 2.87%  5,945,383  43,417 2.96%
    Non-interest earning assets:                 
    Cash and due from banks 9,226      8,072      7,307    
    Other assets 267,689      249,476      279,308    
    Total assets$7,392,771     $7,010,890     $6,231,998    
                      
    Interest bearing liabilities:                 
    Savings, NOW and money market deposits$2,896,086 $1,247 0.17% $2,765,380 $1,220 0.18% $2,512,892 $1,222 0.20%
    Time deposits 199,340  155 0.32%  215,562  187 0.34%  280,057  351 0.51%
    Total deposits 3,095,426  1,402 0.18%  2,980,942  1,407 0.19%  2,792,949  1,573 0.23%
    Federal Home Loan Bank advances —  — 0.00%  —  — 0.00%  495  — 0.00%
    Other Borrowings 84,597  691 3.31%  49,891  399 3.17%  —  — 0.00%
    Total interest bearing liabilities 3,180,023  2,093 0.27%  3,030,833  1,806 0.24%  2,793,444  1,573 0.23%
    Non-interest bearing liabilities:                 
    Demand and transaction deposits 3,549,483      3,290,932      2,786,581    
    Other liabilities 102,874      126,746      109,420    
    Total liabilities 6,832,380      6,448,511      5,689,445    
    Stockholders' equity 560,391      562,379      542,553    
    Total liabilities and stockholders' equity$7,392,771     $7,010,890     $6,231,998    
                      
    Net interest income / interest rate spread  $48,368 2.61%   $47,081 2.63%   $41,844 2.73%
    Net interest earning assets / net interest margin$3,935,833   2.76% $3,722,509   2.77% $3,151,939   2.85%
                      
    Total Cost of Deposits    0.09%     0.09%     0.11%

    (1) Amounts are net of deferred origination costs (fees) and the allowance for loan losses
    (2) Includes prepayment penalty interest income in 1Q2022, 4Q2021, and 1Q2021 of $399, $353, and $642 respectively (in thousands)


    Deposit Portfolio Composition

    (In thousands)March 31, 2022 December 31, 2021 March 31, 2021
          
    Non-interest bearing demand deposit accounts$3,759,349 $3,335,005 $2,819,627
    NOW accounts 212,550  210,844  206,145
    Money market deposit accounts 2,416,201  2,227,953  2,067,886
    Savings accounts 386,253  375,301  361,731
    Time deposits 199,120  207,152  264,678
    Total deposits$6,973,473 $6,356,255 $5,720,067
             


     Three Months Ended
     March 31, 2022 December 31, 2021 March 31, 2021
    (In thousands)Average
    Balance    		 Average
    Rate Paid    		 Average
    Balance    		 Average
    Rate Paid    		 Average
    Balance    		 Average
    Rate Paid
                
    Non-interest bearing demand deposit accounts$3,549,482 0.00% $3,290,932 0.00% $2,786,581 0.00%
    NOW accounts 208,134 0.08%  204,556 0.09%  198,117 0.08%
    Money market deposit accounts 2,310,294 0.19%  2,190,423 0.20%  1,963,707 0.23%
    Savings accounts 377,659 0.11%  370,401 0.10%  351,068 0.11%
    Time deposits 199,340 0.32%  215,562 0.34%  280,057 0.51%
    Total deposits$6,644,909 0.09% $6,271,874 0.09% $5,579,530 0.11%
                      

    Asset Quality

    (In thousands)March 31, 2022 December 31, 2021 March 31, 2021
    Loans 90 days past due and accruing$—  $—  $2,424 
    Nonaccrual loans held for sale 2,490   1,000   — 
    Nonaccrual loans excluding held for sale loans and restructured loans 10,835   14,722   37,324 
    Troubled debt restructured loans - nonaccrual 18,107   13,497   20,578 
    Troubled debt restructured loans - accruing 29,259   24,997   17,656 
    Other real estate owned 307   307   2,988 
    Impaired securities 59   63   61 
    Total nonperforming assets$61,057  $54,586  $81,031 
          
    Nonaccrual loans:     
    Commercial and industrial$8,099  $8,313  $12,347 
    Multifamily 3,537   2,907   7,660 
    Commercial real estate 3,988   4,054   4,133 
    Construction and land development 5,053   —   8,605 
    Total commercial portfolio 20,677   15,274   32,745 
          
    Residential real estate lending 7,404   12,525   24,300 
    Consumer and other 861   420   857 
    Total retail portfolio 8,265   12,945   25,157 
    Total nonaccrual loans$28,942  $28,219  $57,902 
          
    Nonaccrual loans to total loans 0.84%  0.85%  1.78%
    Nonperforming assets to total assets 0.80%  0.77%  1.27%
    Allowance for loan losses to nonaccrual loans 129.71%  127.10%  63.32%
    Allowance for loan losses to total loans 1.08%  1.08%  1.13%
    Annualized net charge-offs (recoveries) to average loans 0.08%  0.44%  0.20%
                

    Credit Quality

     March 31, 2022
    (in thousands)Pass Special Mention Substandard Doubtful Total
    Commercial and industrial$691,834 $7,221 $25,122 $— $724,177
    Multifamily 745,349  32,737  35,616  —  813,702
    Commercial real estate 291,320  2,899  59,955  —  354,174
    Construction and land development 32,766  —  7,476  —  40,242
    Residential real estate lending 1,135,481  290  7,404  —  1,143,175
    Consumer and other 388,907  —  545  —  389,452
    Total loans$3,285,657 $43,147 $136,118 $— $3,464,922


     December 31, 2021
    ($ in thousands)Pass Special Mention Substandard Doubtful Total
    Commercial and industrial$693,312 $10,165 $25,908 $— $729,385
    Multifamily 721,869  48,804  51,128  —  821,801
    Commercial real estate 295,261  13,947  60,221  —  369,429
    Construction and land development 24,063  —  7,476  —  31,539
    Residential real estate lending 1,050,865  292  12,525  —  1,063,682
    Consumer and other 291,398  —  420  —  291,818
    Total loans$3,076,768 $73,208 $157,678 $— $3,307,654


     March 31, 2021
    ($ in thousands)Pass Special Mention Substandard Doubtful Total
    Commercial and industrial$566,421 $17,622 $28,079 $459 $612,581
    Multifamily 742,746  108,016  28,296  3,173  882,231
    Commercial real estate 257,178  32,878  74,252  —  364,308
    Construction and land development 33,971  7,691  8,605  —  50,267
    Residential real estate lending 1,113,551  —  24,300  —  1,137,851
    Consumer and other 205,594  —  857  —  206,451
    Total loans$2,919,461 $166,207 $164,389 $3,632 $3,253,689
                   

    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
     Three Months Ended
    (in thousands)March 31, 2022 December 31, 2021 March 31, 2021
    Core operating revenue     
    Net Interest income (GAAP)$48,368  $47,081  $41,844 
    Non-interest income 7,422   12,361   4,000 
    Less: Securities (gain) loss (162)  106   (18)
    Core operating revenue (non-GAAP) 55,628   59,548   45,826 
    Less: Tax (credits) depreciation on solar investments (64)  (5,337)  3,836 
    Core operating revenue excluding solar tax impact (non-GAAP)$55,564  $54,211  $49,662 
          
    Core non-interest expense     
    Non-interest expense (GAAP)$34,397  $35,032  $32,793 
    Less: Severance (1) (52)  (54)  (1,090)
    Less: ABOC (371)  (930)  — 
    Core non-interest expense (non-GAAP)$33,974  $34,048  $31,703 
          
    Core net income     
    Net Income (GAAP)$14,165  $15,924  $12,189 
    Less: Securities (gain) loss (162)  106   (18)
    Add: Severance (1) 52   54   1,090 
    Add: ABOC 371   930   — 
    Less: Tax on notable items  (67)  (257)  (271)
    Core net income (non-GAAP) 14,359   16,757   12,990 
    Less: Tax (credits) depreciation on solar investments (64)  (5,337)  3,836 
    Add: Tax effect of solar income 17   1,259   (973)
    Core net income excluding solar tax impact (non-GAAP)$14,312  $12,679  $15,853 
          
    Tangible common equity     
    Stockholders' equity (GAAP)$526,762  $563,875  $540,222 
    Less: Minority interest (133)  (133)  (133)
    Less: Goodwill (12,936)  (12,936)  (12,936)
    Less: Core deposit intangible (3,890)  (4,151)  (5,057)
    Tangible common equity (non-GAAP)$509,803  $546,655  $522,096 
          
    Average tangible common equity     
    Average stockholders' equity (GAAP)$560,391  $562,379  $542,553 
    Less: Minority interest (133)  (133)  (133)
    Less: Goodwill (12,936)  (12,936)  (12,936)
    Less: Core deposit intangible (4,017)  (4,299)  (5,205)
    Average tangible common equity (non-GAAP)$543,305  $545,011  $524,279 
          
    Core return on average assets     
    Denominator: Total average assets 7,392,771   7,010,890   6,231,998 
    Core return on average assets (non-GAAP) 0.79%  0.95%  0.85%
    Core return on average assets excluding solar tax impact (non-GAAP) 0.79%  0.72%  1.03%
          
    Core return on average tangible common equity     
    Denominator: Average tangible common equity 543,305   545,011   524,279 
    Core return on average tangible common equity (non-GAAP) 10.72%  12.20%  10.05%
    Core return on average tangible common equity excluding solar tax impact (non-GAAP) 10.68%  9.23%  12.27%
          
    Core efficiency ratio     
    Numerator: Core non-interest expense (non-GAAP) 33,974   34,048   31,703 
    Core efficiency ratio (non-GAAP) 61.07%  57.18%  69.18%
    Core efficiency ratio excluding solar tax impact (non-GAAP) 61.14%  62.81%  63.84%

    (1) Salary and COBRA reimbursement expense for positions eliminated


    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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