Amalgamated Financial Corp. Reports Record Third Quarter 2024 Financial Results; Margin Expands to 3.51%; Return on Average Assets of 1.32% YoY Tangible Book Value per share Growth of 27.9% | Deposits Higher by $311 million NEW YORK, October 24, 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 third quarter ended September 30, 2024. Third Quarter 2024 Highlights (on a linked quarter basis) • Net income of $27.9 million, or $0.90 per diluted share, compared to $26.8 million, or $0.87 per diluted share. • Core net income1 of $28.0 million, or $0.91 per diluted share, compared to $26.2 million, or $0.85 per diluted share. Deposits and Liquidity • Total deposits increased $145.6 million, or 2.0%, to $7.6 billion including a $51.3 million decline in Brokered CDs. • Excluding Brokered CDs, on-balance sheet deposits increased $196.9 million, or 2.7%, to $7.5 billion. • Political deposits increased $231.9 million, or 13%, to $2.0 billion, which includes both on and off-balance sheet deposits. • Off-balance sheet deposits increased $114.1 million, or 11%, to $1.2 billion, comprised of both transactional political deposits and other segment deposits. • Average cost of deposits, excluding Brokered CDs, increased 3 basis points to 151 basis points, where non-interest- bearing deposits comprised 51% of total deposits excluding Brokered CDs. Assets and Margin • Net loans receivable increased $78.0 million, or 1.8%, to $4.5 billion. • Excluding a $40.9 million package of low yielding residential loans marked-to-market and moved to held-for-sale, net loans receivable increased $118.9 million or 2.7%. • Total PACE assessments grew $10.6 million, or 0.9%, to $1.2 billion. • Net interest income grew $2.9 million, or 4.2%, to $72.1 million. • Net interest margin increased 5 basis points to 3.51%. Capital and Returns • Tier 1 leverage ratio of 8.63%, increased by 21 basis points, and Common Equity Tier 1 ratio of 13.82%. • Tangible common equity1 ratio of 8.14%, representing an eighth consecutive quarter of improvement. • Tangible book value per share1 increased $1.69, or 8.2%, to $22.29, and has increased $4.87, or 27.9% since September 2023. • Strong core return on average tangible common equity1 of 17.04% and core return on average assets1 of 1.33%. Priscilla Sims Brown, President and Chief Executive Officer, commented, “Our third quarter financial results continue to demonstrate that Amalgamated remains positioned to achieve sustainable earnings and profitability. During the quarter, we delivered outstanding deposit and loan growth, strong profitability and returns, and a growing capital base that positions us to invest in our strategic initiatives which will sustain our growth into the future.” 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.
Third Quarter Earnings Net income for the third quarter of 2024 was $27.9 million, or $0.90 per diluted share, compared to $26.8 million, or $0.87 per diluted share, for the second quarter of 2024. The $1.1 million increase during the quarter was primarily driven by a $3.2 million increase in non-core ICS One-Way Sell fee income from our off-balance sheet deposits, a $2.9 million increase in net interest income, a $1.3 million decrease in provision for credit losses, and a $0.7 million increase in non-core income from solar tax equity investments, which was expected. This was offset by a $4.3 million reduction in fair value on a pool of lower yielding residential loans moved to held for sale, a $1.5 million increase in non-interest expense, and a $1.3 million increase in income tax expense, and a $0.5 million increase in losses on securities sales. Core net income1 for the third quarter of 2024 was $28.0 million, or $0.91 per diluted share, compared to $26.2 million, or $0.85 per diluted share, for the second quarter of 2024. Excluded from core net income for the quarter, pre-tax, was $8.1 million of ICS One-Way Sell fee income, a $4.3 million reduction in fair value of held for sale residential loans, $3.2 million of losses on the sale of securities, $1.1 million of accelerated depreciation from solar tax equity investments, $0.7 million of gains on subordinated debt repurchases, and $0.2 million in severance costs. Excluded from core net income for the second quarter of 2024, 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 our solar tax equity investments, $0.4 million of gains on subordinated debt repurchases. Net interest income was $72.1 million for the third quarter of 2024, compared to $69.2 million for the second quarter of 2024. Loan interest income increased $2.8 million and loan yields increased 11 basis points mainly as a result of a $86.7 million increase in average loan balances. Adjusted for two discrete items; the effect of $2.1 million of accelerated amortization related to purchase premiums last quarter and the recognition in the current quarter of a $1.3 million acceleration of deferred costs on certain loans, loan interest income increased by $2.1 million in the quarter. Interest income on securities increased $1.7 million driven by an increase in the average balance of securities of $79.7 million. Interest expense on total interest-bearing deposits increased $1.2 million driven by a 26 basis point increase in cost despite a decrease in the average balance of total interest-bearing deposits of $235.6 million. The increase in deposit cost was primarily related to adjustments to rates on money market products and select non-time deposit accounts late in second quarter and early in the current quarter. The decrease in the average balance of interest-bearing deposits was primarily driven by a mix shift as newly raised political deposits were mainly non-interest-bearing whereas related outflows were mainly interest-bearing. Additionally, the average balance on Brokered CD’s declined $25.0 million as certain long-term issuances were called. The average balance of borrowings also decreased $32.6 million, now substantially consisting of lower-cost subordinated debt. Net interest margin was 3.51% for the third quarter of 2024, an increase of 5 basis points from 3.46% in the second quarter of 2024. As noted above, there were two discrete items that affected the third quarter and second quarter margin. Excluding these discrete items, net interest margin improved 2 basis points from the prior quarter, all else equal. Prepayment penalties had no impact on our net interest margin in the third quarter of 2024, which is the same as in the prior quarter. Provision for credit losses totaled an expense of $1.8 million for the third quarter of 2024 compared to an expense of $3.2 million in the second quarter of 2024. The expense in the third quarter was primarily driven by charge-offs on our consumer solar and small business portfolios, and updates to CECL model assumptions, offset by decreases in reserves for unfunded loan commitments. Non-interest income was $8.9 million for the third quarter of 2024, compared to $9.3 million in the second quarter of 2024. Excluding all non-core income adjustments noted above, core non-interest income1 was $8.8 million for the third quarter of 2024, compared to $8.5 million in the second quarter of 2024. The increase was primarily related to higher commercial banking fees, increased fees from our treasury investment services, and modestly higher income from our trust business. 2
Non-interest expense for the third quarter of 2024 was $41.0 million, an increase of $1.5 million from the second quarter of 2024. Core non-interest expense1 for the third quarter of 2024 was $40.7 million, an increase of $1.3 million from the second quarter of 2024. This was mainly driven by a $0.7 million increase in compensation and employee benefits expense due to strategic new hires and corporate performance accruals, as well as higher data processing expense related to the advance of digital initiatives scheduled for 2025. Our provision for income tax expense was $10.3 million for the third quarter of 2024, compared to $9.0 million for the second quarter of 2024. The effective tax rate for the third quarter of 2024 was 26.9%. In the prior quarter, there were $0.5 million of discrete tax benefits resulting in an effective tax rate of 25.2%, or 26.6% excluding the discrete items. Balance Sheet Quarterly Summary Total assets were $8.4 billion at September 30, 2024, compared to $8.3 billion at June 30, 2024, which modestly grew the balance sheet above its target range but also carried $40.9 million in loans held for sale related to the residential loan sale that settled shortly after the quarter closed. Notable changes within individual balance sheet line items include a $91.2 million increase in cash and cash equivalents, a $24.1 million increase in securities, and a $78.0 million increase in net loans receivable. Additionally, deposits excluding Brokered CDs increased by $196.9 million while Brokered CDs decreased $51.3 million, and borrowings decreased by $8.8 million. Our off-balance sheet deposits increased by $114.1 million, or 11%, to $1.2 billion. Total net loans receivable, at September 30, 2024 were $4.5 billion, an increase of $78.0 million, or 1.8% for the quarter. The increase in loans is primarily driven by a $60.8 million increase in multifamily loans, a $46.0 million increase in commercial and industrial loans, and a $37.6 million increase in commercial real estate loans, offset by an $11.1 million decrease in consumer solar loans, and a $54.3 million decrease in residential loans, primarily due to the noted loan pool sale. During the quarter, criticized or classified loans decreased $5.9 million, largely related to a $6.9 million note sale (with a related fully reserved $4.5 million charge-off) on a legacy non-accrual leveraged loan. Additionally, payoffs of two delinquent commercial and industrial loans totaling $1.7 million and charge-offs of smaller commercial and industrial loans totaling $1.0 million were offset by the downgrade of one $3.2 million multifamily loan to substandard and accruing and downgrades of small business loans totaling $1.1 million. Total deposits at September 30, 2024 were $7.6 billion, an increase of $145.6 million, or 2.0%, during the quarter. Total deposits excluding Brokered CDs increased by $196.9 million to $7.5 billion, or a 2.7% 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 $2.0 billion as of September 30, 2024, an increase of $231.9 million during this quarter. Non-interest-bearing deposits represented 50% of average total deposits and 51% of ending total deposits for the quarter, excluding Brokered CDs, contributing to an average cost of total deposits of 158 basis points. Super-core deposits2 totaled approximately $4.5 billion, had a weighted average life of 16 years, and comprised 60% of total deposits, excluding Brokered CDs. Total uninsured deposits were $4.5 billion, comprising 59% of total deposits. Nonperforming assets totaled $28.6 million, or 0.34% of period-end total assets at September 30, 2024, a decrease of $7.1 million, compared with $35.7 million, or 0.43% on a linked quarter basis. The decrease in nonperforming assets was primarily driven by the note sale mentioned above, a $0.2 million decrease in residential real estate nonaccrual loans, a $0.2 million decrease in consumer and consumer solar nonaccrual loans, offset by a $0.3 million increase in commercial and industrial nonaccrual loans. 3 2 Refer to Terminology on page 6 for definitions of certain terms used in this release.
During the quarter, the allowance for credit losses on loans decreased $1.9 million to $61.5 million. The ratio of allowance to total loans was 1.35%, a decrease of 7 basis points from 1.42% in the second quarter of 2024. The decrease was primarily the result of a release of reserves from the previously noted legacy leveraged commercial and industrial note sale, which carried a reserve of $4.5 million. Capital Quarterly Summary As of September 30, 2024, the Common Equity Tier 1 Capital ratio was 13.82%, the Total Risk-Based Capital ratio was 16.25%, and the Tier 1 Leverage Capital ratio was 8.63%, compared to 13.48%, 16.04% and 8.42%, respectively, as of June 30, 2024. Stockholders’ equity at September 30, 2024 was $698.3 million, an increase of $52.2 million during the quarter. The increase in stockholders’ equity was primarily driven by $27.9 million of net income for the quarter and a $26.9 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 $22.29 as of September 30, 2024 compared to $20.61 as of June 30, 2024. Tangible common equity1 improved to 8.14% of tangible assets, compared to 7.66% as of June 30, 2024. Conference Call As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its third quarter 2024 results today, October 24, 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. Third 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 13748697. The telephonic replay will be available until October 31, 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 September 30, 2024, our total assets were $8.4 billion, total net loans were $4.5 billion, and total deposits were $7.6 billion. Additionally, as of September 30, 2024, our trust business held $35.4 billion in assets under custody and $14.6 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 4
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 September 30, 2024 versus certain periods in 2024 and 2023 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 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. 5
“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. “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. 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 are not statements of historical or current fact nor are they assurances of future performance and generally can be identified by the use of forward-looking terminology, such as “may,” “approximately,” “will,” “anticipate,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “possible,” and “intend,” or the negative thereof as well as other similar words and expressions of the future. Forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict as to timing, extent, likelihood and degree of occurrence, which could cause our actual results to differ materially from those anticipated in or by such statements. Potential risks and uncertainties include, but are not limited to, the following: (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) our ability to maintain sufficient liquidity to meet our deposit and debt obligations as they come due, which may require that we sell investment securities at a loss, negatively impacting our net income, earnings and capital; (vi) unfavorable conditions in the capital markets, which may cause declines in our stock price and the value of our investments; (vii) 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; (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) the general decline in the real estate and lending markets, particularly in commercial real estate in our market areas, and the effects of the enactment of or changes to rent-control and other similar regulations on multi-family housing; (x) changes in legislation, regulation, public policies, or administrative practices impacting the banking industry, including increased minimum capital requirements and other regulation in the aftermath of recent bank failures; (xi) the outcome of any legal proceedings that may be instituted against us (xii) our inability to achieve organic loan and deposit growth and the composition of that growth; (xiii) the composition of our loan portfolio, including any concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which we operate; (xiv) inaccuracy of the assumptions and estimates we make and policies that we implement in establishing our allowance for credit losses; (xv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (xvi) any matter that would cause us to conclude that there was impairment of any asset, including intangible assets; (xvii) limitations on our ability to declare and pay dividends; (xviii) 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; (xix) increased competition for experienced members of the 6
workforce including executives in the banking industry; (xx) 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; (xxi) increased regulatory scrutiny and exposure from the use of “big data” techniques, machine learning, and artificial intelligence; (xxii) downgrade in our credit rating; (xxiii) “greenwashing claims” against us and our Environmental, Social and Governance (“ESG”) products and increased scrutiny and political opposition to ESG and Diversity, Equity and Inclusion (“DEI”) practices; (xxiv) any unanticipated or greater than anticipated adverse conditions (including the possibility of earthquakes, wildfires, and other natural disasters)affecting the markets in which we operate; (xxv) physical and transitional risks related to climate change as they impact our business and the businesses that we finance; (xxvi) future repurchase of our shares through our common stock repurchase program; and (xxvii) descriptions of assumptions underlying or relating to any of the foregoing. 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) September 30, June 30, September 30, September 30, ($ in thousands) 2024 2024 2023 2024 2023 INTEREST AND DIVIDEND INCOME Loans $ 54,110 $ 51,293 $ 49,578 $ 157,355 $ 139,744 Securities 46,432 44,978 39,971 133,801 118,989 Interest-bearing deposits in banks 2,274 2,690 1,687 7,556 3,360 Total interest and dividend income 102,816 98,961 91,236 298,712 262,093 INTEREST EXPENSE Deposits 30,105 28,882 23,158 84,879 55,809 Borrowed funds 604 887 4,350 4,497 12,292 Total interest expense 30,709 29,769 27,508 89,376 68,101 NET INTEREST INCOME 72,107 69,192 63,728 209,336 193,992 Provision for credit losses 1,849 3,161 2,014 6,598 10,913 Net interest income after provision for credit losses 70,258 66,031 61,714 202,738 183,079 NON-INTEREST INCOME Trust Department fees 3,704 3,657 3,678 11,215 11,613 Service charges on deposit accounts 12,091 8,614 2,731 26,841 7,897 Bank-owned life insurance income 613 615 727 1,837 2,054 Losses on sale of securities (3,230) (2,691) (1,699) (8,695) (5,052) Gain (loss) on sale of loans and changes in fair value on loans held- for-sale, net (4,223) 69 26 (4,107) 30 Equity method investments income (loss) (823) (1,551) 550 (301) 1,261 Other income 807 545 767 1,636 2,127 Total non-interest income 8,939 9,258 6,780 28,426 19,930 NON-INTEREST EXPENSE Compensation and employee benefits 23,757 23,045 21,345 69,075 64,525 Occupancy and depreciation 3,423 3,379 3,349 9,705 10,184 Professional fees 2,575 2,332 2,222 7,284 7,211 Data processing 5,087 4,786 4,545 14,503 13,176 Office maintenance and depreciation 651 580 685 1,894 2,130 Amortization of intangible assets 183 182 222 548 666 Advertising and promotion 1,023 1,175 816 3,417 3,431 Federal deposit insurance premiums 900 1,050 1,200 3,000 3,018 Other expense 3,365 2,983 2,955 9,203 9,154 Total non-interest expense 40,964 39,512 37,339 118,629 113,495 Income before income taxes 38,233 35,777 31,155 112,535 89,514 Income tax expense 10,291 9,024 8,847 30,591 24,230 Net income $ 27,942 $ 26,753 $ 22,308 $ 81,944 $ 65,284 Earnings per common share - basic $ 0.91 $ 0.88 $ 0.73 $ 2.68 $ 2.13 Earnings per common share - diluted $ 0.90 $ 0.87 $ 0.73 $ 2.65 $ 2.12 Three Months Ended Nine Months Ended 8
Consolidated Statements of Financial Condition ($ in thousands) September 30, 2024 June 30, 2024 December 31, 2023 Assets (unaudited) (unaudited) Cash and due from banks $ 3,946 $ 4,081 $ 2,856 Interest-bearing deposits in banks 145,261 53,912 87,714 Total cash and cash equivalents 149,207 57,993 90,570 Securities: Available for sale, at fair value Traditional securities 1,617,045 1,581,338 1,429,739 Property Assessed Clean Energy (“PACE”) assessments 149,500 112,923 53,303 1,766,545 1,694,261 1,483,042 Held-to-maturity, at amortized cost: Traditional securities, net of allowance for credit losses of $51, $53, and $54, respectively 583,788 606,013 620,232 PACE assessments, net of allowance for credit losses of $641, $655, and $667, respectively 1,028,588 1,054,569 1,076,602 1,612,376 1,660,582 1,696,834 Loans held for sale 38,623 1,926 1,817 Loans receivable, net of deferred loan origination costs 4,547,903 4,471,839 4,411,319 Allowance for credit losses (61,466) (63,444) (65,691) Loans receivable, net 4,486,437 4,408,395 4,345,628 Resell agreements 74,883 137,461 50,000 Federal Home Loan Bank of New York ("FHLBNY") stock, at cost 4,625 4,823 4,389 Accrued interest receivable 54,268 52,575 55,484 Premises and equipment, net 6,413 6,599 7,807 Bank-owned life insurance 107,365 106,752 105,528 Right-of-use lease asset 16,125 17,971 21,074 Deferred tax asset, net 38,510 47,654 56,603 Goodwill 12,936 12,936 12,936 Intangible assets, net 1,669 1,852 2,217 Equity method investments 11,514 12,710 13,024 Other assets 32,144 26,214 25,371 Total assets $ 8,413,640 $ 8,250,704 $ 7,972,324 Liabilities Deposits $ 7,594,564 $ 7,448,988 $ 7,011,988 Borrowings 68,436 77,252 304,927 Operating leases 22,292 24,784 30,646 Other liabilities 30,016 53,568 39,399 Total liabilities 7,715,308 7,604,592 7,386,960 Stockholders’ equity Common stock, par value $.01 per share 308 307 307 Additional paid-in capital 287,167 286,021 288,232 Retained earnings 459,398 435,202 388,033 Accumulated other comprehensive loss, net of income taxes (46,702) (73,579) (86,004) Treasury stock, at cost (1,972) (1,972) (5,337) Total Amalgamated Financial Corp. stockholders' equity 698,199 645,979 585,231 Noncontrolling interests 133 133 133 Total stockholders' equity 698,332 646,112 585,364 Total liabilities and stockholders’ equity $ 8,413,640 $ 8,250,704 $ 7,972,324 9
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) 2024 2024 2023 2024 2023 Selected Financial Ratios and Other Data: Earnings per share Basic $ 0.91 $ 0.88 $ 0.73 $ 2.68 $ 2.13 Diluted 0.90 0.87 0.73 2.65 2.12 Core net income (non-GAAP) Basic $ 0.91 $ 0.86 $ 0.76 $ 2.61 $ 2.23 Diluted 0.91 0.85 0.76 2.59 2.22 Book value per common share (excluding minority interest) $ 22.77 $ 21.09 $ 17.93 $ 22.77 $ 17.93 Tangible book value per share (non-GAAP) $ 22.29 $ 20.61 $ 17.43 $ 22.29 $ 17.43 Common shares outstanding, par value $.01 per share(1) 30,663 30,630 30,459 30,663 30,459 Weighted average common shares outstanding, basic 30,646 30,551 30,481 30,558 30,601 Weighted average common shares outstanding, diluted 30,911 30,832 30,590 30,868 30,738 (1) 70,000,000 shares authorized; 30,776,163, 30,743,666, and 30,736,141 shares issued for the periods ended September 30, 2024, June 30, 2024, and September 30, 2023 respectively, and 30,662,883, 30,630,386, and 30,458,781 shares outstanding for the periods ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. 10
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, 2024 2024 2023 2024 2023 Selected Performance Metrics: Return on average assets 1.32 % 1.30 % 1.12 % 1.33 % 1.11 % Core return on average assets (non-GAAP) 1.33 % 1.27 % 1.17 % 1.29 % 1.17 % Return on average equity 16.63 % 17.27 % 16.43 % 17.35 % 16.69 % Core return on average tangible common equity (non-GAAP) 17.04 % 17.34 % 17.67 % 17.31 % 18.02 % Average equity to average assets 7.96 % 7.53 % 6.82 % 7.65 % 6.67 % Tangible common equity to tangible assets (non-GAAP) 8.14 % 7.66 % 6.72 % 8.14 % 6.72 % Loan yield 4.79 % 4.68 % 4.56 % 4.74 % 4.43 % Securities yield 5.25 % 5.22 % 4.94 % 5.23 % 4.84 % Deposit cost 1.58 % 1.55 % 1.33 % 1.53 % 1.08 % Net interest margin 3.51 % 3.46 % 3.29 % 3.48 % 3.40 % Efficiency ratio (1) 50.54 % 50.37 % 52.96 % 49.89 % 53.05 % Core efficiency ratio (non-GAAP) 50.35 % 50.80 % 51.71 % 50.52 % 51.88 % Asset Quality Ratios: Nonaccrual loans to total loans 0.61 % 0.78 % 0.79 % 0.61 % 0.79 % Nonperforming assets to total assets 0.34 % 0.43 % 0.46 % 0.34 % 0.46 % Allowance for credit losses on loans to nonaccrual loans 222.30 % 182.83 % 197.58 % 222.30 % 197.58 % Allowance for credit losses on loans to total loans 1.35 % 1.42 % 1.56 % 1.35 % 1.56 % Annualized net charge-offs to average loans 0.61 % 0.25 % 0.27 % 0.35 % 0.27 % Capital Ratios: Tier 1 leverage capital ratio 8.63 % 8.42 % 7.89 % 8.63 % 7.89 % Tier 1 risk-based capital ratio 13.82 % 13.48 % 12.63 % 13.82 % 12.63 % Total risk-based capital ratio 16.25 % 16.04 % 15.28 % 16.25 % 15.28 % Common equity tier 1 capital ratio 13.82 % 13.48 % 12.63 % 13.82 % 12.63 % (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 September 30, 2024 At June 30, 2024 At September 30, 2023 Amount % of total Amount % of total Amount % of total Commercial portfolio: Commercial and industrial $ 1,058,376 23.3 % $ 1,012,400 22.6 % $ 1,050,355 24.1 % Multifamily 1,291,380 28.4 % 1,230,545 27.5 % 1,094,955 25.1 % Commercial real estate 415,077 9.1 % 377,484 8.4 % 324,139 7.4 % Construction and land development 22,224 0.5 % 23,254 0.5 % 28,326 0.6 % Total commercial portfolio 2,787,057 61.3 % 2,643,683 59.0 % 2,497,775 57.2 % Retail portfolio: Residential real estate lending 1,350,347 29.7 % 1,404,624 31.4 % 1,409,530 32.3 % Consumer solar 374,499 8.2 % 385,567 8.6 % 415,324 9.5 % Consumer and other 36,000 0.8 % 37,965 1.0 % 42,116 1.0 % Total retail portfolio 1,760,846 38.7 % 1,828,156 41.0 % 1,866,970 42.8 % Total loans held for investment 4,547,903 100.0 % 4,471,839 100.0 % 4,364,745 100.0 % Allowance for credit losses (61,466) (63,444) (67,815) Loans receivable, net $ 4,486,437 $ 4,408,395 $ 4,296,930 PACE assessments: Available for sale, at fair value Residential PACE assessments 149,500 12.7 % 112,923 9.7 % 38,526 3.5 % Held-to-maturity, at amortized cost Commercial PACE assessments 256,128 21.7 % 256,663 22.0 % 270,020 24.3 % Residential PACE assessments 773,101 65.6 % 798,561 68.4 % 800,484 72.2 % Total Held-to-maturity PACE assessments 1,029,229 87.3 % 1,055,224 90.4 % 1,070,504 96.5 % Total PACE assessments 1,178,729 100.0 % 1,168,147 100.0 % 1,109,030 100.0 % Allowance for credit losses (641) (655) (670) Total PACE assessments, net $ 1,178,088 $ 1,167,492 $ 1,108,360 Loans receivable, net and total PACE assessments, net as a % of Deposits 74.6% 74.9% 77.3% Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs 75.6% 76.4% 81.9% 12
Net Interest Income Analysis Three Months Ended September 30, 2024 June 30, 2024 September 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 $ 182,981 $ 2,274 4.94 % $ 213,725 $ 2,690 5.06 % $ 170,830 $ 1,687 3.92 % Securities(1) 3,388,580 44,678 5.25 % 3,308,881 42,937 5.22 % 3,208,334 39,971 4.94 % Resell agreements 104,933 1,754 6.65 % 122,618 2,041 6.69 % — — 0.00 % Loans receivable, net (2) 4,493,520 54,110 4.79 % 4,406,843 51,293 4.68 % 4,314,767 49,578 4.56 % Total interest-earning assets 8,170,014 102,816 5.01 % 8,052,067 98,961 4.94 % 7,693,931 91,236 4.70 % Non-interest-earning assets: Cash and due from banks 6,144 6,371 6,129 Other assets 217,332 217,578 204,506 Total assets $ 8,393,490 $ 8,276,016 $ 7,904,566 Interest-bearing liabilities: Savings, NOW and money market deposits $ 3,506,499 $ 26,168 2.97 % $ 3,729,858 $ 24,992 2.69 % $ 3,446,027 $ 17,157 1.98 % Time deposits 223,337 2,148 3.83 % 210,565 1,898 3.63 % 176,171 1,122 2.53 % Brokered CDs 131,103 1,789 5.43 % 156,086 1,992 5.13 % 371,329 4,879 5.21 % Total interest-bearing deposits 3,860,939 30,105 3.10 % 4,096,509 28,882 2.84 % 3,993,527 23,158 2.30 % Borrowings 71,948 604 3.34 % 104,560 887 3.41 % 376,585 4,350 4.58 % Total interest-bearing liabilities 3,932,887 30,709 3.11 % 4,201,069 29,769 2.85 % 4,370,112 27,508 2.50 % Non-interest-bearing liabilities: Demand and transaction deposits 3,721,398 3,390,941 2,920,737 Other liabilities 70,804 60,982 74,964 Total liabilities 7,725,089 7,652,992 7,365,813 Stockholders' equity 668,401 623,024 538,753 Total liabilities and stockholders' equity $ 8,393,490 $ 8,276,016 $ 7,904,566 Net interest income / interest rate spread $ 72,107 1.90 % $ 69,192 2.09 % $ 63,728 2.20 % Net interest-earning assets / net interest margin $ 4,237,127 3.51 % $ 3,850,998 3.46 % $ 3,323,819 3.29 % Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs $ 7,451,234 1.51 % $ 7,331,364 1.48 % $ 6,542,935 1.11 % Total deposits / total cost of deposits $ 7,582,337 1.58 % $ 7,487,450 1.55 % $ 6,914,264 1.33 % Total funding / total cost of funds $ 7,654,285 1.60 % $ 7,592,010 1.58 % $ 7,290,849 1.50 % (1) Includes FHLBNY stock in the average balance, and dividend income on FHLBNY stock in interest income. (2) No material impact of prepayment penalty interest income in 3Q2024, 2Q2024, or 3Q2023 13
Net Interest Income Analysis Nine Months Ended September 30, 2024 September 30, 2023 (In thousands) Average Balance Income / Expense Yield / Rate Average Balance Income / Expense Yield / Rate Interest-earning assets: Interest-bearing deposits in banks $ 200,627 $ 7,556 5.03 % $ 125,560 $ 3,360 3.58 % Securities 3,289,635 128,679 5.23 % 3,276,065 118,557 4.84 % Resell agreements 102,197 5,122 6.69 % 8,003 432 7.22 % Total loans, net (1)(2) 4,431,801 157,355 4.74 % 4,216,391 139,744 4.43 % Total interest-earning assets 8,024,260 298,712 4.97 % 7,626,019 262,093 4.60 % Non-interest-earning assets: Cash and due from banks 5,862 5,067 Other assets 219,096 210,112 Total assets $ 8,249,218 $ 7,841,198 Interest-bearing liabilities: Savings, NOW and money market deposits $ 3,608,927 $ 73,033 2.70 % $ 3,248,278 $ 40,010 1.65 % Time deposits 207,374 5,622 3.62 % 161,756 2,030 1.68 % Brokered CDs 159,041 6,224 5.23 % 383,521 13,769 4.80 % Total interest-bearing deposits 3,975,342 84,879 2.85 % 3,793,555 55,809 1.97 % Borrowings 154,564 4,497 3.89 % 365,262 12,292 4.50 % Total interest-bearing liabilities 4,129,906 89,376 2.89 % 4,158,817 68,101 2.19 % Non-interest-bearing liabilities: Demand and transaction deposits 3,417,970 3,086,482 Other liabilities 70,476 72,821 Total liabilities 7,618,352 7,318,120 Stockholders' equity 630,866 523,078 Total liabilities and stockholders' equity $ 8,249,218 $ 7,841,198 Net interest income / interest rate spread $ 209,336 2.08 % $ 193,992 2.41 % Net interest-earning assets / net interest margin $ 3,894,354 3.48 % $ 3,467,202 3.40 % Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs $ 7,234,271 1.45 % $ 6,496,516 0.87 % Total deposits / total cost of deposits $ 7,393,312 1.53 % $ 6,880,037 1.08 % Total funding / total cost of funds $ 7,547,876 1.58 % $ 7,245,299 1.26 % (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 September YTD 2024 and September YTD 2023 of $18 thousand and $0, respectively. 14
Deposit Portfolio Composition Three Months Ended (In thousands) September 30, 2024 June 30, 2024 September 30, 2023 Ending Balance Average Balance Ending Balance Average Balance Ending Balance Average Balance Non-interest-bearing demand deposit accounts $ 3,801,834 $ 3,721,398 $ 3,445,068 $ 3,390,941 $ 2,808,300 $ 2,920,737 NOW accounts 186,557 188,250 192,452 191,253 192,654 192,883 Money market deposit accounts 2,959,264 2,986,434 3,093,644 3,202,365 3,059,982 2,893,930 Savings accounts 327,935 331,816 336,943 336,240 357,470 359,214 Time deposits 216,901 223,337 227,437 210,565 180,529 176,171 Brokered certificates of deposit ("CDs") 102,073 131,103 153,444 156,086 391,919 371,329 Total deposits $ 7,594,564 $ 7,582,338 $ 7,448,988 $ 7,487,450 $ 6,990,854 $ 6,914,264 Total deposits excluding Brokered CDs $ 7,492,491 $ 7,451,235 $ 7,295,544 $ 7,331,364 $ 6,598,935 $ 6,542,935 Three Months Ended September 30, 2024 June 30, 2024 September 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 0.90 % 1.09 % 1.07 % 1.07 % 0.95 % 1.01 % Money market deposit accounts 3.00 % 3.24 % 3.08 % 2.93 % 2.31 % 2.14 % Savings accounts 1.42 % 1.64 % 1.67 % 1.37 % 1.16 % 1.14 % Time deposits 3.83 % 3.83 % 3.50 % 3.63 % 2.88 % 2.53 % Brokered CDs 4.89 % 5.43 % 4.98 % 5.13 % 5.14 % 5.21 % Total deposits 1.43 % 1.58 % 1.59 % 1.55 % 1.46 % 1.33 % Interest-bearing deposits excluding Brokered CDs 2.80 % 3.02 % 2.88 % 2.74 % 2.16 % 2.00 % (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) September 30, 2024 June 30, 2024 September 30, 2023 Loans 90 days past due and accruing $ — $ — $ — Nonaccrual loans held for sale 989 989 2,189 Nonaccrual loans - Commercial 17,108 23,778 28,041 Nonaccrual loans - Retail 10,542 10,924 6,283 Nonaccrual securities 8 29 31 Total nonperforming assets $ 28,647 $ 35,720 $ 36,544 Nonaccrual loans: Commercial and industrial $ 1,849 $ 8,428 $ 7,575 Multifamily — — — Commercial real estate 4,146 4,231 4,575 Construction and land development 11,113 11,119 15,891 Total commercial portfolio 17,108 23,778 28,041 Residential real estate lending 7,578 7,756 3,009 Consumer solar 2,848 2,794 2,817 Consumer and other 116 374 457 Total retail portfolio 10,542 10,924 6,283 Total nonaccrual loans $ 27,650 $ 34,702 $ 34,324 16
Credit Quality September 30, 2024 June 30, 2024 September 30, 2023 ($ in thousands) Criticized and classified loans Commercial and industrial $ 45,329 $ 53,940 $ 45,959 Multifamily 13,386 10,242 10,999 Commercial real estate 8,186 8,311 8,762 Construction and land development 11,113 11,119 15,891 Residential real estate lending 7,578 7,756 3,009 Consumer solar 2,848 2,794 2,817 Consumer and other 116 374 457 Total loans $ 88,556 $ 94,536 $ 87,894 Criticized and classified loans to total loans Commercial and industrial 1.00 % 1.21 % 1.05 % Multifamily 0.29 % 0.23 % 0.25 % Commercial real estate 0.18 % 0.19 % 0.20 % Construction and land development 0.24 % 0.25 % 0.36 % Residential real estate lending 0.17 % 0.17 % 0.07 % Consumer solar 0.06 % 0.06 % 0.06 % Consumer and other — % 0.01 % 0.01 % Total loans 1.94 % 2.12 % 2.00 % September 30, 2024 June 30, 2024 September 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 2.14 % 1.01 % 0.32 % 1.44 % — % 1.71 % Multifamily — % 0.37 % — % 0.38 % 0.45 % 0.46 % Commercial real estate — % 0.40 % — % 0.40 % — % 0.64 % Construction and land development — % 3.73 % — % 3.60 % — % 3.68 % Residential real estate lending (0.03) % 0.91 % (0.18) % 0.88 % (0.07) % 1.13 % Consumer solar 1.58 % 7.68 % 2.57 % 7.00 % 1.88 % 6.72 % Consumer and other 1.05 % 6.44 % 0.01 % 6.49 % 0.04 % 6.00 % Total loans 0.61 % 1.35 % 0.25 % 1.42 % 0.27 % 1.60 % 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 Nine Months Ended (in thousands) September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Core operating revenue Net Interest Income (GAAP) $ 72,107 $ 69,192 $ 63,728 $ 209,336 $ 193,992 Non-interest income (GAAP) 8,939 9,258 6,780 28,426 19,930 Add: Securities loss 3,230 2,691 1,699 8,695 5,052 Less: ICS One-Way Sell Fee Income(1) (8,085) (4,859) — (15,847) — Less: Changes in fair value of loans held-for-sale 4,265 — — 4,265 — Less: Subdebt repurchase gain(2) (669) (406) (637) (1,076) (1,417) Add: Tax (credits) depreciation on solar investments(3) 1,089 1,815 — 1,095 — Core operating revenue (non-GAAP) 80,876 77,691 71,570 234,894 217,557 Core non-interest expense Non-interest expense (GAAP) $ 40,964 $ 39,512 $ 37,339 $ 118,629 $ 113,495 Add: Gain on settlement of lease termination(4) — — — 499 — Less: Severance costs(5) (241) (44) (332) (471) (617) Core non-interest expense (non-GAAP) 40,723 39,468 37,007 118,657 112,878 Core net income Net Income (GAAP) $ 27,942 $ 26,753 $ 22,308 $ 81,944 $ 65,284 Add: Securities loss 3,230 2,691 1,699 8,695 5,052 Less: ICS One-Way Sell Fee Income(1) (8,085) (4,859) — (15,847) — Less: Changes in fair value of loans held-for-sale 4,265 — — 4,265 — Less: Gain on settlement of lease termination(4) — — — (499) — Less: Subdebt repurchase gain(2) (669) (406) (637) (1,076) (1,417) Add: Severance costs(5) 241 44 332 471 617 Add: Tax (credits) depreciation on solar investments(3) 1,089 1,815 — 1,095 — Less: Tax on notable items (19) 180 (396) 764 (1,151) Core net income (non-GAAP) 27,994 26,218 23,306 79,812 68,385 Tangible common equity Stockholders' equity (GAAP) $ 698,332 $ 646,112 $ 546,291 $ 698,332 $ 546,291 Less: Minority interest (133) (133) (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) (12,936) (12,936) Less: Core deposit intangible (1,669) (1,852) (2,439) (1,669) (2,439) Tangible common equity (non-GAAP) 683,594 631,191 530,783 683,594 530,783 Average tangible common equity Average stockholders' equity (GAAP) $ 668,401 $ 623,024 $ 538,753 $ 630,866 $ 523,078 Less: Minority interest (133) (133) (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) (12,936) (12,936) Less: Core deposit intangible (1,759) (1,941) (2,547) (1,940) (2,768) Average tangible common equity (non-GAAP) 653,573 608,014 523,137 615,857 507,241 (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
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, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Core return on average assets Numerator: Core net income (non-GAAP) $ 27,994 $ 26,218 $ 23,306 $ 79,812 $ 68,385 Denominator: Total average assets (GAAP) $ 8,393,490 $ 8,276,016 $ 7,904,566 8,249,218 7,841,198 Core return on average assets (non-GAAP) 1.33% 1.27% 1.17% 1.29% 1.17% Core return on average tangible common equity Numerator: Core net income (non-GAAP) $ 27,994 $ 26,218 $ 23,306 $ 79,812 $ 68,385 Denominator: Average tangible common equity (non-GAAP) $ 653,573 $ 608,014 $ 523,137 615,857 507,241 Core return on average tangible common equity (non-GAAP) 17.04% 17.34% 17.67% 17.31% 18.02% Core efficiency ratio Numerator: Core non-interest expense (non-GAAP) $ 40,723 $ 39,468 $ 37,007 $ 118,657 $ 112,878 Denominator: Core operating revenue (non-GAAP) 80,876 77,691 71,570 234,894 217,557 Core efficiency ratio (non-GAAP) 50.35% 50.80% 51.71% 50.52% 51.88% 19