UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 25, 2024
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (212 ) 895-8988
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR § 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR § 240.12b-2).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 25, 2024, Amalgamated Financial Corp. (the "Company") issued a press release announcing financial results for the first quarter ended March 31, 2024. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
Item 7.01 Regulation FD Disclosure.
On April 25, 2024, the Company will hold an earnings conference call and webcast at 11:00 a.m. (Eastern Time) to discuss financial results for the first quarter ended March 31, 2024. The press release contains information about how to access the conference call and webcast. A copy of the slide presentation to be used during the earnings call and webcast is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The slide presentation is also available on our website, www.amalgamatedbank.com, under the “Investor Relations” section.
The information in this Item 7.01, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits The following exhibit index lists the exhibits that are either filed or furnished with this Current Report on Form 8-K:
EXHIBIT INDEX
| Exhibit No. | Description | |||||||||||||
| 99.1 | ||||||||||||||
| 99.2 | ||||||||||||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. | |||||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AMALGAMATED FINANCIAL CORP. | |||||||||||
By: | /s/ Priscilla Sims Brown | ||||||||||
Name: | Priscilla Sims Brown | ||||||||||
Title: | Chief Executive Officer | ||||||||||
Date: | |||||||||||
2
Amalgamated Financial Corp. Reports First Quarter 2024 Financial Results; Stellar Deposit Growth; Net Interest Margin Rises to 3.49% Common Equity Tier 1 Capital Ratio of 13.68% | Return on Average Assets of 1.36% NEW YORK, April 25, 2024 – (Globe Newswire) -- Amalgamated Financial Corp. (the “Company” or “Amalgamated”) (Nasdaq: AMAL), the holding company for Amalgamated Bank (the “Bank”), today announced financial results for the first quarter ended March 31, 2024. First Quarter 2024 Highlights (on a linked quarter basis) • Net income of $27.2 million, or $0.89 per diluted share, compared to $22.7 million, or $0.74 per diluted share. • Core net income1 of $25.6 million, or $0.83 per diluted share, compared to $22.1 million, or $0.72 per diluted share. Deposits and Liquidity • Total deposits increased $293.8 million, or 4.2%, to $7.3 billion including an $80.0 million decline in Brokered CDs. • Excluding Brokered CDs, on-balance sheet deposits increased $373.8 million, or 5.5%, to $7.1 billion. • Political deposits increased $250.4 million, or 21%, to $1.4 billion. • Off-balance sheet deposits totaled $456.8 million, comprised primarily of transactional political deposits and transitional deposits scheduled for our Trust business. • Average cost of deposits, excluding Brokered CDs, increased 11 basis points to 136 basis points for the quarter, where non-interest-bearing deposits comprised 44.5% of total deposits, nearly identical to the prior quarter. Assets and Margin • Net loans receivable increased $13.8 million, or 0.3%, to $4.4 billion. • Total PACE assessments grew $10.1 million, or 0.9%, to $1.1 billion. • Net interest income grew $0.7 million, or 1.1%, to $68.0 million. • Net interest margin expanded 5 basis points to 3.49%. Capital and Returns • Leverage ratio of 8.29%, increasing 22 basis points, and Common Equity Tier 1 ratio of 13.68%. • Tangible common equity1 ratio of 7.41%, representing the sixth consecutive quarter of improvement. • Tangible book value per share1 increased $0.99, or 5.3%, to $19.73. • Strong core return on average tangible common equity1 of 17.59%. Share Repurchase • Repurchased approximately 10,000 shares, or $0.2 million of common stock under the Company’s $40 million share repurchase program announced in the first quarter of 2022, with $19.5 million of remaining capacity. Priscilla Sims Brown, President and Chief Executive Officer, commented, “Our first quarter results show Amalgamated as a banking industry leader and we proved once again that our unique and valuable business model is well positioned to thrive in varying economic conditions. This clearly separates Amalgamated from our peers and affirms my incredible optimism for 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.
First Quarter Earnings Net income for the first quarter of 2024 was $27.2 million, or $0.89 per diluted share, compared to $22.7 million, or $0.74 per diluted share, for the fourth quarter of 2023. The $4.5 million increase during the quarter was primarily driven by a $2.2 million decrease in provision for credit losses, a $1.2 million decrease in income tax expense, a $0.8 million increase in non-interest income, and a $0.7 million increase in net interest income. Core net income1 for the first quarter of 2024 was $25.6 million, or $0.83 per diluted share, compared to $22.1 million, or $0.72 per diluted share, for the fourth quarter of 2023. Excluded from core net income for the quarter, pre-tax, was $2.9 million of ICS One-Way Sell fee income, $2.8 million of losses on the sale of securities, $1.8 million of tax credits from solar tax equity investments, $0.5 million in gains on the settlement of a lease termination, and $0.2 million in severance costs. Excluded from core net income for the fourth quarter of 2023, pre-tax, was $2.3 million of losses on the sale of securities and $3.3 million of tax credits from our solar tax equity investments. Net interest income was $68.0 million for the first quarter of 2024, compared to $67.3 million for the fourth quarter of 2023. Loan interest income increased $0.4 million driven by a $19.5 million increase in average loan balances coupled with an 8 basis point increase in loan yields. Interest income on securities decreased $0.7 million driven by a decrease in the average balance of securities of $5.4 million. Interest income on resell agreements increased $1.1 million driven by a $62.2 million increase in the average balance and a 32 basis point increase in yields. The increase in interest income was offset by higher interest expense on total interest-bearing deposits of $0.6 million driven by an 18 basis point increase in cost offset by a decrease in the average balance of total interest-bearing deposits of $152.4 million. The changes in deposit costs were primarily related to increased rates on select non-time deposit products and a 29 basis point increase in the cost of time deposits. The decrease in the average balance of interest-bearing deposits was primarily driven by a decrease in the average balance of higher cost brokered deposits of $119.1 million. Net interest margin was 3.49% for the first quarter of 2024, an increase of 5 basis points from 3.44% in the fourth quarter of 2023. The increase is largely due to increased yields on increased loan related average balances. In addition, $81.2 million in short-term resell agreements were deployed to utilize excess deposit liquidity. Prepayment penalties had no impact on our net interest margin in the first quarter of 2024, which is the same as in the prior quarter. Provision for credit losses totaled an expense of $1.6 million for the first quarter of 2024 compared to an expense of $3.8 million in the fourth quarter of 2023. The expense in the first quarter is primarily driven by increases in specific loan reserves, charge-offs on the solar loan portfolio, and an increase in reserve for multifamily loans to reflect the current market repricing conditions, offset by improvements in macro-economic forecasts used in the CECL model. Non-interest income was $10.2 million for the first quarter of 2024, compared to $9.4 million in the fourth quarter of 2023. Core non-interest income1 was $8.3 million for the first quarter of 2024, compared to $8.5 million in the fourth quarter of 2023. The decrease was primarily related to lower BOLI income and commercial banking fees, offset by an increase from fees from our treasury investment services. Non-interest expense for the first quarter of 2024 was $38.2 million, an increase of $0.4 million from the fourth quarter of 2023. Core non-interest expense1 for the first quarter of 2024 was $38.5 million, an increase of $0.8 million from the fourth quarter of 2023. This was mainly driven by a $1.1 million increase in compensation and employee benefits expense due to select differential investments in employees as well as increased payroll taxes. Our provision for income tax expense was $11.3 million for the first quarter of 2024, compared to $12.5 million for the fourth quarter of 2023. In the prior quarter a state and city tax examination resulted in a $3.3 million adjustment, while the conclusion of the analysis in the first quarter of 2024 resulted in an adjustment of $0.9 million. Excluding the tax adjustment, our effective tax rate for the first quarter of 2024 was 26.9%, compared to 26.2% for the fourth quarter of 2023. 2
Balance Sheet Quarterly Summary Total assets were $8.1 billion at March 31, 2024, compared to $8.0 billion at December 31, 2023, in line with our strategy to keep our balance sheet growth flat. Notable changes within individual balance sheet line items include an $81.2 million increase in resell agreements, a $64.6 million increase in cash and cash equivalents, a $22.1 million increase in securities, and a $13.8 million increase in net loans receivable. Additionally, deposits excluding Brokered CDs increased by $373.8 million while Brokered CDs decreased $80.0 million, and other borrowings decreased by $165.3 million. Our off-balance sheet deposits increased $153.7 million, or 51%, to $456.8 million. Total net loans receivable, at March 31, 2024 were $4.4 billion, an increase of $13.8 million, or 0.3% for the quarter. The increase in loans is primarily driven by a $27.3 million increase in multifamily loans, and a $3.1 million increase in commercial and industrial loans, offset by a $9.8 million decrease in consumer solar loans, and a $6.3 million decrease in residential loans. During the quarter, criticized or classified loans decreased $9.0 million largely related to the payoff of $7.0 million of commercial and industrial loans and an upgrade of $3.0 million of commercial and industrial loans. Total deposits at March 31, 2024 were $7.3 billion, an increase of $293.8 million, or 4.2%, during the quarter. Total deposits excluding Brokered CDs increased by $373.8 million to $7.1 billion, or a 5.5% increase. Deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $1.4 billion as of March 31, 2024, an increase of $250.4 million during this quarter, of which a substantial portion were moved off-balance sheet. Non-interest-bearing deposits represented 44% of average total deposits and 44% of ending total deposits for the quarter, contributing to an average cost of total deposits of 146 basis points. Super-core deposits2 totaled approximately $4.0 billion, had a weighted average life of 17 years, and comprised 55% of total deposits, excluding Brokered CDs. Total uninsured deposits were $4.1 billion, comprising 56% of total deposits. Excluding uninsured super-core deposits of approximately $2.9 billion, remaining uninsured deposits were approximately 16%-19% of total deposits with immediate liquidity coverage of 323%. Nonperforming assets totaled $34.0 million, or 0.42% of period-end total assets at March 31, 2024, a decrease of $0.2 million, compared with $34.2 million, or 0.43% on a linked quarter basis. The decrease in nonperforming assets was primarily driven by a $2.5 million decrease in residential real estate nonaccrual loans, offset by a $1.2 million increase in commercial and industrial nonaccrual loans, and a $1.2 million increase in consumer solar nonaccrual loans. During the quarter, the allowance for credit losses on loans decreased $1.3 million to $64.4 million. The ratio of allowance to total loans was 1.46%, a decrease of 3 basis points from 1.49% in the fourth quarter of 2023. Capital Quarterly Summary As of March 31, 2024, our Common Equity Tier 1 Capital ratio was 13.68%, Total Risk-Based Capital ratio was 16.35%, and Tier-1 Leverage Capital ratio was 8.29%, compared to 12.98%, 15.64% and 8.07%, respectively, as of December 31, 2023. Stockholders’ equity at March 31, 2024 was $616.9 million, an increase of $31.5 million during the quarter. The increase in stockholders’ equity was primarily driven by $27.2 million of net income for the quarter and a $7.1 million improvement in accumulated other comprehensive loss due to the tax effected mark-to-market on our available for sale securities portfolio, offset by $3.1 million in dividends paid at $0.10 per outstanding share, and $0.2 million of common stock repurchases. Tangible book value per share was $19.73 as of March 31, 2024 compared to $18.74 as of December 31, 2023. Tangible common equity improved to 7.41% of tangible assets, compared to 7.16% as of December 31, 2023. 3 2 Refer to Terminology on page 5 for definitions of certain terms used in this release.
Conference Call As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its first quarter 2024 results today, April 25, 2024 at 11:00am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. First 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 13745544. The telephonic replay will be available until May 2, 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 March 31, 2024, our total assets were $8.1 billion, total net loans were $4.4 billion, and total deposits were $7.3 billion. Additionally, as of March 31, 2024, our trust business held $35.0 billion in assets under custody and $13.9 billion in assets under management. Non-GAAP Financial Measures This release (and the accompanying financial information and tables) refer to certain non-GAAP financial measures including, without limitation, “Core operating revenue,” “Core non-interest expense,” “Core non-interest income,” “Core net income,” “Tangible common equity,” “Average tangible common equity,” “Core return on average assets,” “Core return on average tangible common equity,” and “Core efficiency ratio.” Our management utilizes this information to compare our operating performance for March 31, 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. 4
Terminology Certain terms used in this release are defined as follows: “Core efficiency ratio” is defined as “Core non-interest expense” divided by “Core operating revenue.” We believe the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income. “Core net income” is defined as net income after tax excluding gains and losses on sales of securities, ICS One-Way Sell fee income, gains on the sale of owned property, costs related to branch closures, restructuring/severance costs, acquisition costs, tax credits and accelerated depreciation on solar equity investments, and taxes on notable pre-tax items. We believe the most directly comparable GAAP financial measure is net income. “Core non-interest expense” is defined as total non-interest expense excluding costs related to branch closures, restructuring/severance, and acquisitions. We believe the most directly comparable GAAP financial measure is total non- interest expense. “Core non-interest income” is defined as total non-interest income excluding gains and losses on sales of securities, ICS One-Way Sell fee income, gains on the sale of owned property, and tax credits and accelerated depreciation on solar equity investments. We believe the most directly comparable GAAP financial measure is non-interest income. “Core operating revenue” is defined as total net interest income plus “core non-interest income”. We believe the most directly comparable GAAP financial measure is the total of net interest income and non-interest income. “Core return on average assets” is defined as “Core net income” divided by average total assets. We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets. “Core return on average tangible common equity” is defined as “Core net income” divided by average “tangible common equity.” We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders’ equity. “Super-core deposits” are defined as total deposits from commercial and consumer customers, with a relationship length of greater than 5 years. We believe the most directly comparable GAAP financial measure is total deposits. “Tangible assets” are defined as total assets excluding, as applicable, goodwill and core deposit intangibles. We believe the most directly comparable GAAP financial measure is total assets. “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. 5
Forward-Looking Statements Statements included in this release that are not historical in nature are intended to be, and are hereby identified as, forward- looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified through the use of forward- looking terminology such as “may,” “will,” “anticipate,” “aspire,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “in the future,” “may” and “intend,” as well as other similar words and expressions of the future. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any or all of which could cause actual results to differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: (i) uncertain conditions in the banking industry and in national, regional and local economies in our core markets, which may have an adverse impact on our business, operations and financial performance; (ii) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (iii) deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors; (iv) changes in our deposits, including an increase in uninsured deposits; (v) unfavorable conditions in the capital markets, which may cause declines in our stock price and the value of our investments; (vi) continued fluctuation of the interest rate environment, including changes in net interest margin or changes that affect the yield curve on investments; (vii) potential deterioration in real estate collateral values; (viii) changes in legislation, regulation, public policies, or administrative practices impacting the banking industry, including increased regulation in the aftermath of recent bank failures; (ix) the outcome of legal or regulatory proceedings that may be instituted against us; (x) our inability to maintain the historical growth rate of the loan portfolio; (xi) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (xii) 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; (xiii) any matter that would cause us to conclude that there was impairment of any asset, including intangible assets; (xiv) the risk that the preliminary financial information reported herein and our current preliminary analysis will be different when our review is finalized; (xv) increased competition for experienced members of the workforce including executives in the banking industry; (xvi) 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; (xvii) increased regulatory scrutiny and exposure from the use of “big data” techniques, machine learning, and artificial intelligence; (xviii) a downgrade in our credit rating; (xix) increased political opposition to Environmental, Social and Governance (“ESG”) practices and Diversity, Equity and Inclusion (“DEI”) practices; (xx) physical and transitional risks related to climate change as they impact our business and the businesses that we finance; and (xxi) future repurchase of our shares through our common stock repurchase program. 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 6
Consolidated Statements of Income (unaudited) March 31, December 31, March 31, ($ in thousands) 2024 2023 2023 INTEREST AND DIVIDEND INCOME Loans $ 51,952 $ 51,551 $ 44,806 Securities 42,390 42,014 39,512 Interest-bearing deposits in banks 2,592 2,419 618 Total interest and dividend income 96,934 95,984 84,936 INTEREST EXPENSE Deposits 25,891 25,315 13,835 Borrowed funds 3,006 3,350 3,821 Total interest expense 28,897 28,665 17,656 NET INTEREST INCOME 68,037 67,319 67,280 Provision for credit losses 1,588 3,756 4,958 Net interest income after provision for credit losses 66,449 63,563 62,322 NON-INTEREST INCOME Trust Department fees 3,854 3,562 3,929 Service charges on deposit accounts 6,136 3,102 2,455 Bank-owned life insurance income 609 828 781 Losses on sale of securities (2,774) (2,340) (3,086) Gains on sale of loans, net 47 2 3 Equity method investments income 2,072 3,671 153 Other income 285 581 973 Total non-interest income 10,229 9,406 5,208 NON-INTEREST EXPENSE Compensation and employee benefits 22,273 21,249 22,014 Occupancy and depreciation 2,904 3,421 3,399 Professional fees 2,376 2,426 2,230 Data processing 4,629 4,568 4,549 Office maintenance and depreciation 663 700 728 Amortization of intangible assets 183 222 222 Advertising and promotion 1,219 750 1,587 Federal deposit insurance premiums 1,050 1,000 718 Other expense 2,855 3,416 3,180 Total non-interest expense 38,152 37,752 38,627 Income before income taxes 38,526 35,217 28,903 Income tax expense 11,277 12,522 7,565 Net income $ 27,249 $ 22,695 $ 21,338 Earnings per common share - basic $ 0.89 $ 0.75 $ 0.69 Earnings per common share - diluted $ 0.89 $ 0.74 $ 0.69 Three Months Ended 7
Consolidated Statements of Financial Condition ($ in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Assets (unaudited) (unaudited) Cash and due from banks $ 3,830 $ 2,856 $ 5,192 Interest-bearing deposits in banks 151,374 87,714 125,705 Total cash and cash equivalents 155,204 90,570 130,897 Securities: Available for sale, at fair value Traditional securities 1,445,793 1,429,739 1,639,105 Property Assessed Clean Energy (“PACE”) assessments 82,258 53,303 — 1,528,051 1,483,042 1,639,105 Held-to-maturity, at amortized cost: Traditional securities, net of allowance for credit losses of $53, $54, and $58, respectively 616,172 620,232 622,741 PACE assessments, net of allowance for credit losses of $657, $667, and $629, respectively 1,057,790 1,076,602 995,766 1,673,962 1,696,834 1,618,507 Loans held for sale 2,137 1,817 5,653 Loans receivable, net of deferred loan origination costs 4,423,780 4,411,319 4,198,170 Allowance for credit losses (64,400) (65,691) (67,323) Loans receivable, net 4,359,380 4,345,628 4,130,847 Resell agreements 131,242 50,000 15,431 Federal Home Loan Bank of New York ("FHLBNY") stock, at cost 4,603 4,389 3,507 Accrued interest receivable 53,436 55,484 40,844 Premises and equipment, net 7,128 7,807 9,250 Bank-owned life insurance 106,137 105,528 105,405 Right-of-use lease asset 19,797 21,074 26,516 Deferred tax asset, net 49,171 56,603 62,504 Goodwill 12,936 12,936 12,936 Intangible assets, net 2,034 2,217 2,883 Equity method investments 14,801 13,024 8,170 Other assets 16,663 25,371 24,001 Total assets $ 8,136,682 $ 7,972,324 $ 7,836,456 Liabilities Deposits $ 7,305,765 $ 7,011,988 $ 7,041,361 Subordinated debt, net 70,570 70,546 73,737 Other borrowings 69,135 234,381 140,000 Operating leases 27,250 30,646 38,333 Other liabilities 47,024 39,399 23,867 Total liabilities 7,519,744 7,386,960 7,317,298 Stockholders’ equity Common stock, par value $.01 per share 307 307 307 Additional paid-in capital 287,198 288,232 287,514 Retained earnings 412,190 388,033 330,673 Accumulated other comprehensive loss, net of income taxes (78,872) (86,004) (97,317) Treasury stock, at cost (4,018) (5,337) (2,152) Total Amalgamated Financial Corp. stockholders' equity 616,805 585,231 519,025 Noncontrolling interests 133 133 133 Total stockholders' equity 616,938 585,364 519,158 Total liabilities and stockholders’ equity $ 8,136,682 $ 7,972,324 $ 7,836,456 8
Select Financial Data As of and for the Three Months Ended March 31, December 31, March 31, (Shares in thousands) 2024 2023 2023 Selected Financial Ratios and Other Data: Earnings per share Basic $ 0.89 $ 0.75 $ 0.69 Diluted 0.89 0.74 0.69 Core net income (non-GAAP) Basic $ 0.84 $ 0.73 $ 0.75 Diluted 0.83 0.72 0.74 Book value per common share (excluding minority interest) $ 20.22 $ 19.23 $ 16.94 Tangible book value per share (non-GAAP) $ 19.73 $ 18.74 $ 16.42 Common shares outstanding, par value $.01 per share(1) 30,510 30,428 30,642 Weighted average common shares outstanding, basic 30,476 30,418 30,706 Weighted average common shares outstanding, diluted 30,737 30,616 30,939 (1) 70,000,000 shares authorized; 30,736,141, 30,736,141, and 30,736,141 shares issued for the periods ended March 31, 2024, December 31, 2023, and March 31, 2023 respectively, and 30,510,393, 30,428,359, and 30,642,299 shares outstanding for the periods ended March 31, 2024, December 31, 2023, and March 31, 2023, respectively. 9
Select Financial Data As of and for the Three Months Ended March 31, December 31, March 31, 2024 2023 2023 Selected Performance Metrics: Return on average assets 1.36 % 1.13 % 1.11 % Core return on average assets (non-GAAP) 1.27 % 1.10 % 1.19 % Return on average equity 18.24 % 16.23 % 17.22 % Core return on average tangible common equity (non-GAAP) 17.59 % 16.22 % 19.21 % Average equity to average assets 7.44 % 6.95 % 6.42 % Tangible common equity to tangible assets (non-GAAP) 7.41 % 7.16 % 6.43 % Loan yield 4.76 % 4.68 % 4.40 % Securities yield 5.21 % 5.21 % 4.73 % Deposit cost 1.46 % 1.43 % 0.81 % Net interest margin 3.49 % 3.44 % 3.59 % Efficiency ratio (1) 48.75 % 49.20 % 53.29 % Core efficiency ratio (non-GAAP) 50.40 % 49.73 % 51.64 % Asset Quality Ratios: Nonaccrual loans to total loans 0.75 % 0.75 % 0.71 % Nonperforming assets to total assets 0.42 % 0.43 % 0.49 % Allowance for credit losses on loans to nonaccrual loans 195.04 % 197.97 % 224.74 % Allowance for credit losses on loans to total loans 1.46 % 1.49 % 1.60 % Annualized net charge-offs to average loans 0.20 % 0.51 % 0.25 % Capital Ratios: Tier 1 leverage capital ratio 8.29 % 8.07 % 7.50 % Tier 1 risk-based capital ratio 13.68 % 12.98 % 12.23 % Total risk-based capital ratio 16.35 % 15.64 % 15.00 % Common equity tier 1 capital ratio 13.68 % 12.98 % 12.23 % (1) Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income 10
Loan and PACE Assessments Portfolio Composition (In thousands) At March 31, 2024 At December 31, 2023 At March 31, 2023 Amount % of total Amount % of total Amount % of total Commercial portfolio: Commercial and industrial $ 1,014,084 22.9% $ 1,010,998 22.9% $ 923,853 22.0% Multifamily 1,175,467 26.6% 1,148,120 26.1% 1,062,826 25.3% Commercial real estate 353,598 8.0% 353,432 8.0% 327,477 7.8% Construction and land development 23,266 0.5% 23,626 0.5% 37,828 0.9% Total commercial portfolio 2,566,415 58.0% 2,536,176 57.5% 2,351,984 56.0% Retail portfolio: Residential real estate lending 1,419,321 32.1% 1,425,596 32.3% 1,390,135 33.1% Consumer solar 398,501 9.0% 408,260 9.3% 410,726 9.8% Consumer and other 39,543 0.9% 41,287 0.9% 45,325 1.1% Total retail portfolio 1,857,365 42.0% 1,875,143 42.5% 1,846,186 44.0% Total loans held for investment 4,423,780 100.0% 4,411,319 100.0% 4,198,170 100.0% Allowance for credit losses (64,400) (65,691) (67,323) Loans receivable, net $ 4,359,380 $ 4,345,628 $ 4,130,847 PACE assessments: Available for sale, at fair value Residential PACE assessments 82,258 7.2% 53,303 4.7% — —% Held-to-maturity, at amortized cost Commercial PACE assessments 256,661 22.5% 258,306 22.8% 262,398 26.3% Residential PACE assessments 801,786 70.3% 818,963 72.5% 733,997 73.7% 1,058,447 92.8% 1,077,269 95.3% 996,395 100.0% Total PACE assessments 1,140,705 100.0% 1,130,572 100.0% 996,395 100.0% Allowance for credit losses (657) (667) (629) Total PACE assessments, net $ 1,140,048 $ 1,129,905 $ 995,766 Loans receivable, net and total PACE assessments, net as a % of Deposits 75.3% 78.1% 72.8% Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs 77.0% 80.9% 79.5% 11
Net Interest Income Analysis Three Months Ended March 31, 2024 December 31, 2023 March 31, 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 $ 205,369 $ 2,592 5.08 % $ 190,994 $ 2,419 5.02 % $ 90,962 $ 618 2.76 % Securities(1) 3,170,356 41,064 5.21 % 3,175,784 41,741 5.21 % 3,361,750 39,193 4.73 % Resell agreements 79,011 1,326 6.75 % 16,848 273 6.43 % 18,644 319 6.94 % Loans receivable, net (2) 4,390,489 51,952 4.76 % 4,370,946 51,551 4.68 % 4,129,460 44,806 4.40 % Total interest-earning assets 7,845,225 96,934 4.97 % 7,754,572 95,984 4.91 % 7,600,816 84,936 4.53 % Non-interest-earning assets: Cash and due from banks 5,068 5,357 4,015 Other assets 226,270 220,580 217,020 Total assets $ 8,076,563 $ 7,980,509 $ 7,821,851 Interest-bearing liabilities: Savings, NOW and money market deposits $ 3,591,551 $ 21,872 2.45 % $ 3,629,658 $ 19,808 2.17 % $ 3,091,228 $ 9,555 1.25 % Time deposits 188,045 1,576 3.37 % 183,225 1,423 3.08 % 149,814 297 0.80 % Brokered CDs 190,240 2,443 5.16 % 309,378 4,084 5.24 % 367,684 3,983 4.39 % Total interest-bearing deposits 3,969,836 25,891 2.62 % 4,122,261 25,315 2.44 % 3,608,726 13,835 1.55 % Other borrowings 288,093 3,006 4.20 % 304,869 3,350 4.36 % 347,878 3,821 4.45 % Total interest-bearing liabilities 4,257,929 28,897 2.73 % 4,427,130 28,665 2.57 % 3,956,604 17,656 1.81 % Non-interest-bearing liabilities: Demand and transaction deposits 3,138,238 2,921,961 3,286,964 Other liabilities 79,637 76,588 75,798 Total liabilities 7,475,804 7,425,679 7,319,366 Stockholders' equity 600,759 554,830 502,485 Total liabilities and stockholders' equity $ 8,076,563 $ 7,980,509 $ 7,821,851 Net interest income / interest rate spread $ 68,037 2.24 % $ 67,319 2.34 % $ 67,280 2.72 % Net interest-earning assets / net interest margin $ 3,587,296 3.49 % $ 3,327,442 3.44 % $ 3,644,212 3.59 % Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs $ 6,917,834 1.36 % $ 6,734,844 1.25 % $ 6,528,006 0.61 % Total deposits / total cost of deposits $ 7,108,074 1.46 % $ 7,044,222 1.43 % $ 6,895,690 0.81 % Total funding / total cost of funds $ 7,396,167 1.57 % $ 7,349,091 1.55 % $ 7,243,568 0.99 % (1) Includes FHLBNY stock in the average balance, and dividend income on FHLBNY stock in interest income. (2) Includes prepayment penalty interest income in 1Q2024, 4Q2023, and 1Q2023 of $18, $167, and $0, respectively (in thousands). 12
Deposit Portfolio Composition Three Months Ended (In thousands) March 31, 2024 December 31, 2023 March 31, 2023 Ending Balance Average Balance Ending Balance Average Balance Ending Balance Average Balance Non-interest-bearing demand deposit accounts $ 3,182,047 $ 3,138,238 $ 2,940,398 $ 2,921,961 $ 3,015,558 $ 3,286,964 NOW accounts 200,900 197,659 200,382 191,889 199,518 196,499 Money market deposit accounts 3,222,271 3,051,670 3,100,681 3,090,805 2,702,464 2,514,835 Savings accounts 341,054 342,222 340,860 346,964 371,240 379,894 Time deposits 197,265 188,045 187,457 183,225 157,697 149,814 Brokered CDs 162,228 190,240 242,210 309,378 594,884 367,684 Total deposits $ 7,305,765 $ 7,108,074 $ 7,011,988 $ 7,044,222 $ 7,041,361 $ 6,895,690 Total deposits excluding Brokered CDs $ 7,143,537 $ 6,917,834 $ 6,769,778 $ 6,734,844 $ 6,446,477 $ 6,528,006 Three Months Ended March 31, 2024 December 31, 2023 March 31, 2023 (In thousands) Average Rate Paid(1) Cost of Funds Average Rate Paid(1) Cost of Funds Average Rate Paid(1) Cost of Funds Non-interest bearing demand deposit accounts 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % NOW accounts 1.05 % 1.03 % 0.99 % 1.00 % 0.87 % 0.76 % Money market deposit accounts 2.96 % 2.67 % 2.89 % 2.35 % 1.32 % 1.36 % Savings accounts 1.34 % 1.29 % 1.20 % 1.15 % 0.95 % 0.78 % Time deposits 3.44 % 3.37 % 3.01 % 3.08 % 1.25 % 0.80 % Brokered CDs 4.99 % 5.16 % 5.09 % 5.24 % 4.52 % 4.37 % Total deposits 1.60 % 1.46 % 1.62 % 1.43 % 0.99 % 0.81 % Interest-bearing deposits excluding Brokered CDs 2.75 % 2.50 % 2.65 % 2.21 % 1.25 % 1.23 % (1) Average rate paid is calculated as the weighted average of spot rates on deposit accounts as of March 31, 2024. 13
Asset Quality (In thousands) March 31, 2024 December 31, 2023 March 31, 2023 Loans 90 days past due and accruing $ — $ — $ 1,299 Nonaccrual loans held for sale 989 989 5,653 Nonaccrual loans - Commercial 24,228 23,189 25,779 Nonaccrual loans - Retail 8,791 9,994 4,177 Nonaccrual securities 31 31 1,835 Total nonperforming assets $ 34,039 $ 34,203 $ 38,743 Nonaccrual loans: Commercial and industrial $ 8,750 $ 7,533 $ 9,521 Multifamily — — 2,710 Commercial real estate 4,354 4,490 4,745 Construction and land development 11,124 11,166 8,803 Total commercial portfolio 24,228 23,189 25,779 Residential real estate lending 4,763 7,218 2,016 Consumer solar 3,852 2,673 2,021 Consumer and other 176 103 140 Total retail portfolio 8,791 9,994 4,177 Total nonaccrual loans $ 33,019 $ 33,183 $ 29,956 Nonaccrual loans to total loans 0.75 % 0.75 % 0.71 % Nonperforming assets to total assets 0.42 % 0.43 % 0.49 % Allowance for credit losses on loans to nonaccrual loans 195.04 % 197.97 % 224.74 % Allowance for credit losses on loans to total loans 1.46 % 1.49 % 1.60 % Annualized net charge-offs (recoveries) to average loans 0.20 % 0.51 % 0.25 % 14
Credit Quality March 31, 2024 December 31, 2023 March 31, 2023 ($ in thousands) Criticized and classified loans Commercial and industrial $ 62,242 $ 69,843 $ 35,823 Multifamily 10,274 10,306 18,710 Commercial real estate 8,475 8,637 35,121 Construction and land development 11,124 11,166 16,426 Residential real estate lending 4,763 7,218 2,016 Consumer solar 3,785 2,673 2,021 Consumer and other 243 103 140 Total loans $ 100,906 $ 109,946 $ 110,257 Criticized and classified loans to total loans Commercial and industrial 1.41 % 1.58 % 0.85 % Multifamily 0.23 % 0.23 % 0.45 % Commercial real estate 0.19 % 0.20 % 0.84 % Construction and land development 0.25 % 0.25 % 0.39 % Residential real estate lending 0.11 % 0.16 % 0.05 % Consumer solar 0.09 % 0.06 % 0.05 % Consumer and other 0.01 % 0.00 % 0.00 % Total loans 2.29 % 2.48 % 2.63 % March 31, 2024 December 31, 2023 March 31, 2023 Annualized net charge- offs to average loans ACL to total portfolio balance Annualized net charge- offs to average loans ACL to total portfolio balance Annualized net charge- offs to average loans ACL to total portfolio balance Commercial and industrial 0.16 % 1.58 % — % 1.81 % — % 1.78 % Multifamily — % 0.38 % — % 0.19 % 0.44 % 0.66 % Commercial real estate — % 0.40 % — % 0.36 % — % 0.75 % Construction and land development — % 3.67 % 71.82 % 0.10 % — % 0.94 % Residential real estate lending — % 0.87 % (0.04) % 0.93 % (0.05) % 1.07 % Consumer solar 1.67 % 6.72 % 0.99 % 6.85 % 1.54 % 6.81 % Consumer and other 0.86 % 6.36 % 0.05 % 6.48 % 1.22 % 5.90 % Total loans 0.20 % 1.46 % 0.51 % 1.49 % 0.25 % 1.60 % 15
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, 2024 December 31, 2023 March 31, 2023 Core operating revenue Net Interest income (GAAP) $ 68,037 $ 67,319 $ 67,280 Non-interest income 10,229 9,406 5,208 Add: Securities loss 2,774 2,340 3,086 Less: ICS One-Way Sell Fee Income(1) (2,903) — — Less: Subdebt repurchase gain(2) — — (780) Less: Tax credits on solar investments(3) (1,808) (3,251) — Core operating revenue (non-GAAP) 76,329 75,814 74,794 Core non-interest expense Non-interest expense (GAAP) $ 38,152 $ 37,752 $ 38,627 Add: Gain on settlement of lease termination(4) 499 — — Less: Severance costs(5) (184) (47) — Core non-interest expense (non-GAAP) 38,467 37,705 38,627 Core net income Net Income (GAAP) $ 27,249 $ 22,695 $ 21,338 Add: Securities loss 2,774 2,340 3,086 Less: ICS One-Way Sell Fee Income(1) (2,903) — — Less: Gain on settlement of lease termination(4) (499) — — Less: Subdebt repurchase gain(2) — — (780) Add: Severance costs(5) 184 47 — Less: Tax credits on solar investments(3) (1,808) (3,251) — Less: Tax on notable items 607 227 (604) Core net income (non-GAAP) 25,604 22,058 23,040 Tangible common equity Stockholders' equity (GAAP) $ 616,938 $ 585,364 $ 519,158 Less: Minority interest (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) Less: Core deposit intangible (2,034) (2,217) (2,883) Tangible common equity (non-GAAP) 601,835 570,078 503,206 Average tangible common equity Average stockholders' equity (GAAP) $ 600,759 $ 554,830 $ 502,485 Less: Minority interest (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) Less: Core deposit intangible (2,123) (2,325) (2,991) Average tangible common equity (non-GAAP) 585,567 539,436 486,425 Core return on average assets Denominator: Total average assets (GAAP) $ 8,076,563 $ 7,980,509 $ 7,821,851 Core return on average assets (non-GAAP) 1.28% 1.10% 1.19% Core return on average tangible common equity Denominator: Average tangible common equity $ 585,567 $ 539,436 $ 486,425 Core return on average tangible common equity (non-GAAP) 17.59% 16.22% 19.21% Core efficiency ratio Numerator: Core non-interest expense (non-GAAP) $ 38,467 $ 37,705 $ 38,627 Core efficiency ratio (non-GAAP) 50.40% 49.73% 51.64% (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 16
1 Amalgamated Financial Corp. First Quarter 2024 Earnings Presentation April 25, 2024
2 Safe Harbor Statements FORWARD-LOOKING STATEMENTS Statements included in this presentation that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward- looking statements generally can be identified through the use of forward-looking terminology such as “may,” “will,” “anticipate,” “aspire,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “in the future,” “may” and “intend,” as well as other similar words and expressions of the future. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any or all of which could cause actual results to differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, our 2024 Guidance, and statements related to future loss/income (including projected non-interest income) of solar tax equity investments. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors, many of which are beyond our control and 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: • 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; • deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses • 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; • changes in our deposits, including an increase in uninsured deposits; • unfavorable conditions in the capital markets, which may cause declines in our stock price and the value of our investments; • 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; • the rate of growth (or lack thereof) in the economy and employment levels, as well as general business and economic conditions, coupled with the risk that adverse conditions may be greater than anticipated in the markets that we serve; • continued fluctuation of the interest rate environment including changes in net interest margin or changes that affect the yield curve on investments; • potential deterioration in real estate collateral values • changes in legislation, regulation, public policies, or administrative practices impacting the banking industry, including increased regulation and FDIC assessments in the aftermath of the Silicon Valley and Signature Bank failures • the outcome of any legal proceedings that may be instituted against us • fluctuations or unanticipated changes in interest rates on loans or deposits or that affect the yield curve; • our inability to maintain the historical growth rate of our loan portfolio; • changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; • the impact of competition with other financial institutions, many of which are larger and have greater resources, and fintechs, as well as changes in the competitive environment; • any matter that would cause us to conclude that there was impairment of any asset, including intangible assets; • the risk that the preliminary financial information reported herein and our current preliminary analysis could be different when our review is finalized; • increased competition for experienced members of the workforce including executives in the banking industry; • our ability to meet heightened regulatory and supervisory requirements; • our ability to grow and retain low-cost core deposits and retain large, uninsured deposits; • inability to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies, required capital maintenance levels or regulatory requests or directives; • risks associated with litigation, including the applicability of insurance coverage; • the risk of not achieving anticipated cost savings related to reduction in the number of branch locations and other expense areas; • 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; • a downgrade in our credit rating; • increased political opposition to Environmental, Social and Governance (“ESG”) practices; • recessionary conditions; • the ongoing economic effects of the COVID-19 pandemic • volatile credit and financial markets both domestic and foreign; • unexpected challenges related to our executive officer retention; and • physical and transitional risks related to climate change as they impact our business and the businesses that we finance. Additional factors which could affect the forward-looking statements can be found in our Annual Report 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 www.sec.gov/. We disclaim any obligation to update or revise any forward-looking statements contained in this presentation, which speak only as of the date hereof, or to update the reasons why actual results could differ from those contained in or implied by such statements, whether as a result of new information, future events or otherwise, except as required by law. NON-GAAP FINANCIAL MEASURES This presentation contains certain non-GAAP financial measures including, without limitation, “Core Operating Revenue,” “Core Non-interest Expense,” “Tangible Common Equity,” “Average Tangible Common Equity,” “Core Efficiency Ratio,” “Core Net Income,” “Core ROAA,” and “Core ROATCE.” We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP. Specifically, we believe these non-GAAP financial measures (a) allow management and investors to better assess our performance by removing volatility that is associated with discrete items that are unrelated to our core business, and (b) enable a more complete understanding of factors and trends affecting our business. Non-GAAP financial measures, however, have inherent limitations, are not required to be uniformly applied, and are not audited. Accordingly, these non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and we strongly encourage investors to review the GAAP financial measures included in this presentation and not to place undue reliance on 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 presentation with other companies’ non-GAAP financial measures having the same or similar names. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. Reconciliations of non-GAAP financial disclosures to what we believe to be the most directly comparable GAAP measures found in this presentation are set forth in the final pages of this presentation and also may be viewed on the bank’s website, amalgamatedbank.com. You should assume that all numbers presented are unaudited unless otherwise noted.
3 $25.6mm Core Net Income1,2 $0.83 Core EPS1,2 $373.8mm Deposit Growth3 8.29% Leverage Ratio $68.0mm Net Interest Income 3.49% Net Interest Margin 1Q24 Highlights 4Q23 1Q24 4Q23 1Q24 5.5% 4Q23 1Q244Q23 1Q24 4Q23 1Q24 16.1% 4Q23 1Q24 5 bps 2.7% 1.1% 1 GAAP Net Income and GAAP EPS for 1Q24 are $27.2 million and $0.89, respectively 2 See non-GAAP disclosures on pages 27-28 3 Excludes Brokered CDs. GAAP deposit growth for 1Q24 was $293.8 million 15.6%
4 1.19% 1.13% 1.17% 1.10% 1.27% 1Q23 2Q23 3Q23 4Q23 1Q24 7.50% 7.78% 7.89% 8.07% 8.29% 12.23% 12.51% 12.63% 12.98% 13.68% Leverage Ratio CET1 1Q23 2Q23 3Q23 4Q23 1Q24 16.42 16.78 17.43 18.74 19.73 1Q23 2Q23 3Q23 4Q23 1Q24 18.6% 16.8% 17.2% 15.8% 17.14% 1Q23 2Q23 3Q23 4Q23 1Q24 CORE ROAAPER-SHARE KPI'S ($) TBV PER-SHARE ($) CORE ROAE Performance Tracking 1 Core metrics shown 0.74 0.72 0.76 0.72 0.83 2.42 2.31 2.34 2.48 2.48 EPS(1) Rev/Sh(1) 1Q23 2Q23 3Q23 4Q23 1Q24 CAPITAL RATIOS 6.43% 6.59% 6.72% 7.16% 7.41% 1Q23 2Q23 3Q23 4Q23 1Q24 TCE RATIO
5 TOTAL DEPOSITS3 ($bn) Deposit Portfolio 7.0 6.9 7.0 7.0 7.3 7.4 5.7 5.6 5.6 5.8 5.8 6.0 0.6 0.5 0.4 0.2 0.2 0.2 0.7 0.8 1.0 1.0 1.3 1.2 On-BS Political Brokered CDs All Other Deposits 1Q23 2Q23 3Q23 4Q23 1Q24 4/17/24 1.87 1.31 1.19 1.06 0.81 0.40 0.66 CML - Labor CML- Social/Philanthropy CML - Political CML - NFP Consumer CML - Climate/Sustainability CML - Other(1) 1 CML - Other contains but is not limited to: nursing homes, commercial real estate, and non-impact accounts 2 See Core Deposits disclosure on Appendix page 22 for reconciliation of total GAAP Deposits to total Core Deposits 3 For additional relevant data points, please refer to the Metrics Index slides on Appendix pages 24-25 TOTAL CORE DEPOSITS2 BY IMPACT SEGMENT ($bn) POLITICAL DEPOSITS3 ($bn) 0.2 0.3 0.4 0.5 0.6 0.8 1.1 1.2 0.6 0.7 0.8 1.0 1.0 1.1 1.3 1.2 0.6 0.7 0.8 1.0 1.2 1.4 1.5 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 4/17/2024 $7.3bn High deposit points reflected in the quarter preceding a major election Low deposit points reflected in the quarter during a major election Initial deposit rebuild reflected in the quarter after a major election
6 SECURITIES – BOOK VALUE1,2,3 ($bn) Investment Securities 3.4 3.4 3.3 3.3 3.3 1.6 1.5 1.4 1.4 1.4 1.0 1.1 1.1 1.1 1.1 0.8 0.8 0.8 0.8 0.7 Non-Agency PACE Agency 1Q23 2Q23 3Q23 4Q23 1Q24 1 Securities book value excludes unrealized Available for Sale (AFS) gain / loss on sale 2 Non-Agency includes corporate bonds 3 For additional relevant data points, please refer to the Metrics Index slides on Appendix pages 24-25 SECURITIES – YIELDS2 ($bn) 5.07% 5.20% 5.27% 5.43% 5.57% 3.20% 3.12% 3.12% 3.22% 3.36% 5.07% 5.31% 5.44% 5.75% 5.58% PACE Yield Agency Yield Non-Agency Yield 1Q23 2Q23 3Q23 4Q23 1Q24
7 7 504 892 144 Investment Securities Composition HTM PORTFOLIO COMPOSITION1,2,3 ($mm) 241 357 18 Agency Non-Agency Corporates & Other $1,540mm $616mm VALUATION LOSS AS A % OF PORTFOLIO BALANCE2,3 AFS: AFS PORTFOLIO COMPOSITION1,2,3 ($mm) 1 Both AFS and HTM securities balances shown at amortized cost 2 PACE assets not included in portfolio composition or valuation loss charts 3 For additional relevant data points, please refer to the Metrics Index slides on Appendix pages 24-25 6.6% 7.6% 8.1% 6.7% 6.1% 1Q23 2Q23 3Q23 4Q23 1Q24 7.5% 11.0% 10.6% 7.2% 7.2% 1Q23 2Q23 3Q23 4Q23 1Q24 HTM:
8 Loans Held for Investment TOTAL LOANS ($bn) 4.20 4.25 4.36 4.41 4.42 4.40% 4.33% 4.56% 4.68% 4.76% Loan Yield 1Q23 2Q23 3Q23 4Q23 1Q24 1.4 1.4 1.4 1.4 1.4 1.1 1.1 1.1 1.1 1.2 0.9 0.9 1.1 1.0 1.0 0.5 0.5 0.5 0.4 0.4 0.3 0.3 0.3 0.4 0.40.04 0.03 0.03 0.02 0.02 Residential Multifamily C&I Consumer/other CRE Construction and land 1Q23 2Q23 3Q23 4Q23 1Q24 LOAN COMPOSITION ($bn) 1.1 0.2 0.8 0.4 0.1 0.2 0.3 0.04 Mission Aligned Loans Non-Impact Loans Multifamily CRE and Land C&I Consumer/Other MISSION-ALIGNED LOAN COMPOSITION1,2,3 ($bn) 1 Does not include residential or HELOC loans 2 For more detail on the mission-aligned loan portfolio, please refer to slides 12 and 26 3 For additional relevant data points, please refer to the Metrics Index slides on Appendix pages 24-25
9 22.9% 17.2% 16.0% 3.5% 4.7% 35.7% Real Estate Portfolio Composition 17.3% 8.4% 15.5% 28.2% 5.9% 12.9% 11.8% CRE COMPOSITION BY PROPERTY TYPEMULTIFAMILY COMPOSITION BY RENT STABILIZATION Category Weighted Avg. LTV Weighted Avg. DSCR2 Pre 1974 RS1 56.6% 1.54 Section 8 59.4% 1.40 421a 58.1% 1.57 FHEPs 54.5% 1.31 Other - Stabilized 53.4% 1.39 Free Market 50.1% 1.57 Category Weighted Avg. LTV Weighted Avg. DSCR2 Office 42.1% 1.65 Office - Owner Occupied 54.7% 1.82 Retail 48.3% 1.58 Industrial 40.0% 2.14 Mixed Use 39.4% 1.72 Education 60.2% 1.54 Other 50.9% 1.45 $353mm$1,175mm MULTIFAMILY DELINQUENCY SNAPSHOT ($mm) CRE DELINQUENCY SNAPSHOT ($mm)$ Total Change Last 2 Years % of Total Portfolio Non-Performing — -6.0 —% Criticized/Classified 10.3 -58.1 0.9% 30-89 DPD — -11.8 —% Total TTM % of Total Portfolio Net Charge-Offs 1.2 0.1% $ Total Change Last 2 Years % of Total Portfolio Non-Performing 4.4 +0.4 1.2% Criticized/Classified 8.5 -54.4 2.4% 30-89 DPD — -53.4 —% Total TTM % of Total Portfolio Net Charge-Offs — —% 1 Rent-Stabilized loans defined as any real estate loan that has units subject to rent-stabilization rules 2 Weighted Avg. DSCR values shown are calculated using bank-underwritten DSCR's only
10 Real Estate Portfolio By Maturity MULTIFAMILY PORTFOLIO MATURITY TIMELINE ($mm) $114 $116 $127 $264 $553 Pre 1974 RS Section 8 421a FHEPs Other-Stabilized Free Market 2024 2025 2026 2027 2028+ CRE PORTFOLIO MATURITY TIMELINE ($mm) $60 $109 $16 $10 $158 Office Office - Owner Occupied Retail Industrial Mixed Use Education Other 2024 2025 2026 2027 2028+ LTV DSCR1 58.8% 1.33 49.8% 1.75 52.5% 1.36 60.0% 1.45 53.1% 1.57 54.8% 1.52 LTV DSCR1 44.2% 1.53 44.1% 1.79 41.5% 1.38 47.6% 1.49 50.0% 1.88 46.7% 1.76Total:Total: 1 Weighted Avg. DSCR values shown are calculated using bank-underwritten DSCR's only
11 Selected Real Estate Risk Exposure Profile RISK EXPOSURE PROFILE PRE-1974 RS1 AND OFFICE-ONLY LOAN DISTRIBUTION BY COUNTY ($mm) 41.3% 37.4% 9.3% 2.0% 10.0% Manhattan, NY Brooklyn (Kings), NY Queens, NY Ocean, NJ Other, NY $330mm Portfolio Balance ($mm) LTV DSCR2 Office-Only CRE Loans 61.2 42.1% 1.65 Pre-1974 RS1 Multifamily Loans 268.5 56.6% 1.54 Total 329.7 53.9% 1.56 Percent of Total Real Estate Portfolio 22% Percent of Total Loans 7% Percent of Total Assets 4% Percent of Tier 1 Capital 48% Percent of stabilized units in Pre-1974 RS Loans1 76% Percent of total multifamily units subject to Pre-1974 rent-stabilization rules 14% 1 Rent-Stabilized loans defined as any real estate loan that has units subject to rent-stabilization rules 2 Weighted Avg. DSCR values shown are calculated using bank-underwritten DSCR's only MULTIFAMILY GEOGRAPHIC DISTRIBUTION ($mm) 70.1% 13.7% 4.3% 2.7% 9.2% NY DC CA MA Other $1,175mm CRE GEOGRAPHIC DISTRIBUTION ($mm) 75.8% 13.6% 3.0% 2.9% 4.7% NY CA IL CO Other $353mm
121 For more detail on specific loan types included in each impact segment, see Appendix page 26 2 Does not include residential or HELOC loans Mission-Aligned Loan Portfolio 1,086 1 88 CRE AND LAND LOANS BY IMPACT SEGMENT1 ($mm) 59 4 77 5 6 226 C&I LOANS BY IMPACT SEGMENT1 ($mm) 11 537 148 51 12 256 CONSUMER AND OTHER LOANS BY IMPACT SEGMENT1,2 ($mm) 399 40 C&I Climate Protection Detail Solar: $388mm Alternative Energy: $93mm Other: $56mm MULTIFAMILY LOANS BY IMPACT SEGMENT1 ($mm)
13 Net Interest Income & Margin 67.3 63.0 63.7 67.3 68.0 3.59% 3.33% 3.29% 3.44% 3.49% Net Interest Margin 1Q23 2Q23 3Q23 4Q23 1Q24 NIM 5 bps NET INTEREST INCOME & MARGIN1 ($mm) 1 The calculated NIM figures here exclude Allowance for Credit Loss from total interest earning assets across all quarters
14 Non-Interest Income and Expense 7.5 8.2 7.8 8.5 8.3 1.1 1.5 1.4 1.8 1.2 3.9 4.0 3.7 3.6 3.9 2.5 2.7 2.7 3.1 3.2 Retail banking Trust fee income Core other income 1Q23 2Q23 3Q23 4Q23 1Q24 NON-INTEREST EXPENSE1 ($mm) 38.6 37.2 37.0 37.7 38.538.6 37.5 37.3 37.8 38.2 51.6% 52.3% 51.7% 49.7% 50.4% 53.3% 52.9% 53.0% 49.2% 48.7% Core NIX NIX Core Eff Ratio Eff Ratio 1Q23 2Q23 3Q23 4Q23 1Q24 CORE NON-INTEREST INCOME1,2 ($mm) 1 See non-GAAP disclosures on pages 27-28 2 For additional relevant data points, please refer to the Metrics Index slides on Appendix pages 24-25
15 NPA / TOTAL ASSETS Credit Quality QUARTERLY NCO / AVERAGE LOANS1 1Q24 HIGHLIGHTS2 • Net charge-offs of 0.20% in 1Q24 compared to net charge offs of 0.51% in 4Q23 due to a $4.7 million charge-off on one construction loan in 4Q23 • Pass rated loans are 98% of loan portfolio CRITICIZED AND CLASSIFIED LOANS ($mm) 0.49% 0.45% 0.46% 0.43% 0.42% 1Q23 2Q23 3Q23 4Q23 1Q24 0.25% 0.29% 0.27% 0.51% 0.20% Residential Solar Commercial 1Q23 2Q23 3Q23 4Q23 1Q24 110 104 88 111 101 1Q23 2Q23 3Q23 4Q23 1Q24 1 Annualized 2 For additional relevant data points, please refer to the Metrics Index slides on Appendix pages 24-25
16 Allowance for Credit Losses on Loans ALLOWANCE FOR CREDIT LOSSES ON LOANS / TOTAL LOANS 1.61% 1.59% 1.55% 1.49% 1.46% 1Q23 2Q23 3Q23 4Q23 1Q24 65.7 (2.2) (0.7) 1.6 2.2 (5.6) 3.4 64.4 12/31/23 NCO's Loan Balances Specific Reserves Charge Off Expense Quant(1) Qual 3/31/24 ALLOWANCE WATERFALL ($mm) 1.58% 0.38% 0.40% 3.67% 0.87% 6.72% 6.36% C&I Multifamily CRE Land Residential Consumer Solar Consumer and Other ACL COVERAGE RATIO BY LOAN TYPE 1 Quantitative allowance build/release is independently determined by economic indicators
17 2024 Guidance 2024 FINANCIAL OUTLOOK - REVISED • Core pre-tax pre-provision earnings from $143 million to $148 million to: ◦ $145 million to $149 million • Net Interest Income from $268 million to $272 million to: ◦ $270 million to $274 million - considers the effect of the forward rate curve through 2024 • Conditional 2H Balance Sheet growth ~ 3%: ◦ 1H Neutral Balance Sheet ~ $8B ◦ Achieve 8.5% Tier 1 leverage target ◦ Deposit gathering performance | Credit performance | Stable macroeconomic factors
Appendix
19 Ending Deposits + Brokered CDs 84.9 73.3 130.7 142.8 37.9 2020 2021 2022 2023 March YTD Trends KEY FINANCIAL TRENDS THROUGH 1Q24 ($bn) 10.9% CAGR1 10.1% CAGR1 18.9% CAGR1 NPA / Total Assets Loans + PACE 5.3 6.4 6.6 7.1 7.3 5.3 6.4 6.5 6.8 7.1 0.1 0.2 0.2 2020 2021 2022 2023 1Q24 1.38% 0.77% 0.44% 0.43% 0.42% 2020 2021 2022 2023 1Q24 3.9 3.9 5.0 5.5 5.5 3.4 3.3 4.1 4.3 4.4 0.4 0.6 0.9 1.1 1.1 2020 2021 2022 2023 1Q24 >> 7.5% CAGR1 (Loans) Core Pre-Tax Pre-Provision Earnings2,3 ($mm) 9.4% CAGR1 (excl. Brokered CD) 1 Compounded Annual Growth Rate (“CAGR”) 2 See solar tax investment slide 20 for components of income exclusions 3 GAAP Pre-tax, pre-provision income was $40.1 million in 2024 YTD, $139.4 million in 2023, $123.2 in 2022, $70.4 in 2021, and $86.7 in 2020, the only years impacted by our solar investments 0
20 -3.8 3.3 1.8 -1.8 -1.1 -0.9 -2.0 -3.2 1.2 1.6 0.3 0.3 0.3 0.4 1.2 1.7 Tax credits (accelerated depreciation) on solar investments Steady state solar income FY22 FY23 1Q24 2Q24 3Q24 4Q24 FY24 FY25 OVERVIEW OF SOLAR TAX EQUITY INVESTMENTS • Metrics excluding the impact of tax credits or accelerated depreciation is a meaningful way to evaluate our performance and are adjusted in accordance with the below chart ◦ Immediate realization of tax benefits and subsequent accelerated depreciation of the value of the investment creates volatility in the GAAP and core earnings presentations ◦ Steady state income is generally achieved within 4-6 quarters of initial investment and all investments are net profitable over their lives (generally 5 years) ACTUAL AND PROJECTED SOLAR INCOME1,2,3 ($mm) Actual Forecast 1 Actual results and projected solar income forecasts have been revised in 4Q23 2 Balances presented are not tax effected 3 Refer to Reconciliation of Non-GAAP Financial Measures on slides 27-28 for further details on impact to key ratios Solar Tax-Equity Investments
21 Reconciliation of Core Deposits Total Core Deposits1, $mm 3/31/2024 Total Deposits (GAAP) 7,305.8 Less: Brokered CD (162.2) Total Deposits, excl. Brokered CD's 7,143.6 Add: Deposits held off-balance sheet 456.8 Less: Non-Broker Listing Service CD's (2.2) Less: Other non-core, intercompany, and transactional accounts (55.8) Less: Political Deposit Increase since 12/31/23 (250.4) Core Deposits 7,292.0 Core Political Deposits1, $mm 3/31/2024 Political Deposits (GAAP) 1,320.7 Add: Political Deposits held off-balance sheet 117.0 Total Political Deposits 1,437.7 Less: Political Deposit Increase since 12/31/23 (250.4) Core Political Deposits 1,187.3 1 Core deposits is defined as total deposits including deposits held off-balance sheet, but excluding all brokered deposits, deposits from deposit listing services, temporary transaction deposits, certain escrow deposits, and intercompany deposits, transactional political deposits, and transitional deposits scheduled for our Trust business. We believe the most directly comparable GAAP financial measure is total deposits.
22 SUPER-CORE DEPOSITS2 BY IMPACT SEGMENT ($bn) 1Q24 HIGHLIGHTS • Super-core deposits2 make up $4.0 billion, or 54% of total core deposits ◦ Super-core deposits are minimum 5-years old & concentrated with mission-aligned customers ◦ Highly sticky • Weighted average account duration of our super-core deposits is 17 years, compared to 2 years for our other core deposits • Cash and borrowing potential totals $3.7 billion, or 323% of uninsured non-super- core deposits, with a total borrowings utilization rate of 2%, excluding subordinated debt • Total available liquidity, including cash, unpledged non-PACE securities and borrowing potential totals $3.9 billion or 121% of non-super-core deposits Impact Sector Total Balance % of Total Core Deposits Weighted Avg. Account Duration (Years) CML - Labor 1.5 21% 22 Cons - Labor 0.6 9% 23 CML - Social/Philanthropy 0.7 9% 10 CML - Political 0.6 8% 9 CML - Climate/Sustainability 0.1 2% 8 CML - NFP 0.1 2% 8 CML - Other(1) 0.3 4% 19 Total 4.0 54% 17 Other Core Deposits 3.3 46% 2 Total Core Deposits(3) 7.3 10 Super-Core Deposits 1 CML - Other contains but is not limited to: nursing homes, commercial real estate, and non-impact accounts 2 Super-core deposits are defined as all deposit accounts with a relationship length of at least 5 years, excluding brokered certificates of deposit 3 Core deposits is defined as total deposits including deposits held off-balance sheet, but excluding all brokered deposits, deposits from deposit listing services, temporary transaction deposits, certain escrow deposits, intercompany deposits, transactional political deposits and transitional deposits scheduled for our Trust business.. We believe the most directly comparable GAAP financial measure is total deposits. See Core Deposits disclosure on Appendix page 21
23 570 27 (3) (0.2) — 1 7 602 18.74 19.63 19.53 19.52 19.53 19.5 19.73 19.73 12/31/23 Earnings Dividends @ $.10/ share Buybacks - Equity Impact Buybacks - Share count Other(1) AFS Mark 3/31/24 1Q24 SUMMARY • TBV increase of 5.3% primarily driven by: ◦ $27.2 million in net income ◦ $7.1 million improvement in the tax-affected mark-to- market adjustment • No accretive affect to TBV from share repurchase activity in the quarter • Total Common Equity Ratio was 7.6% • Dividend Payout Ratio was 11.3% Tangible Book Value TANGIBLE COMMON EQUITY & TANGIBLE BOOK VALUE ($mm) 1 Other includes the effect of stock issuance
24 Metrics Index DEPOSITS Metric 1Q24 4Q23 Change QoQ Total Deposits ex Brokered ($bn) 7.14 6.77 0.37 Political Deposits ($mm) 1,438 1,187 251 Political Deposits as a % of Total Deposits 20.1% 16.8% 3.3% Total Cost of Deposits 136 bps 125 bps 11 bps Interest-Bearing Deposit Cost 250 bps 221 bps 29 bps Non-Interest Bearing % of Deposit Portfolio1 44.5% 43.4% 1.1% Non-Interest Bearing % of Avg Deposits1 45.4% 43.4% 2.0% Loan/Deposit Ratio 60.6% 62.9% (2.3)% Metric 1Q24 4Q23 Change QoQ Total Mission-Aligned Loans ($bn) 2.39 2.38 0.01 Pass-Rated Loans as a % of Loan Portfolio 97.7% 97.5% 0.2% Total Non-Performing Assets ($mm) 34.0 34.2 (0.2) NPA/Total Assets 0.42% 0.43% (0.01)% LOANS & CREDIT QUALITY Metric 1Q24 4Q23 Change QoQ Trust Assets Under Custody 35.0 41.7 (6.7) Trust Assets Under Management 13.9 14.8 (0.9) TRUST 1 Excludes Brokered CDs
25 Metrics Index Metric 1Q24 4Q23 Change QoQ Total Investment Securities Book Value1 ($bn) 3.3 3.3 — Agency Securities as % of Total Portfolio2 22.6% 23.5% (0.9)% PACE LTV 12.0% 12.0% —% % of AAA rated Non-Agency MBS/ABS Securities3 86.9% 85.6% 1.3% % of Non-Agency MBS/ABS Securities Rated A or Higher3 99.9% 99.9% —% Average Subordination for C&I CLOs 44.3% 44.4% (0.1)% % of Portfolio with Floating Rate of Interest 32.0% 30.0% 2.0% % of Portfolio with Floating Rate of Interest, excl. PACE 48.0% 46.0% 2.0% Weighted Avg Duration4, (years) Total Securities Portfolio, excl. PACE 2.4 2.5 (0.1) AFS - total 1.9 2.0 (0.1) AFS - ex-PACE 1.8 1.9 (0.1) AFS - PACE 4.3 4.6 (0.3) HTM - total 5.1 5.2 (0.1) HTM - ex-PACE 4.0 4.1 (0.1) HTM - PACE 5.7 5.8 (0.1) SECURITIES Metric 1Q24 4Q23 Change QoQ Valuation Loss ($mm) AFS - total 93.1 102.3 (9.2) AFS - ex-PACE 94.1 102.7 (8.6) AFS - PACE (1.0) (0.4) (0.6) HTM - total 153.1 148.0 5.1 HTM - ex-PACE 44.2 44.9 (0.7) HTM - PACE 108.8 103.2 5.6 Valuation Loss as % of portfolio balance AFS - total 5.7 % 6.5 % (0.8) % AFS - ex-PACE 6.1 % 6.7 % (0.6) % AFS - PACE (1.2) % (0.8) % (0.4) % HTM - total 9.1 % 8.7 % 0.4 % HTM - ex-PACE 7.2 % 7.2 % — % HTM - PACE 10.3 % 9.6 % 0.7 % 1 Securities book value excludes unrealized Available for Sale (AFS) gain / loss on sale 2 Non-Agency includes corporate bonds and PACE Assessments 3 MBS/ABS does not include PACE assessments 4 Weighted avg. duration calculated using market values of securities
26 LOAN TYPES INCLUDED WITHIN EACH IMPACT SEGMENT Impact Segment Definitions Climate Protection • Renewable Energy • Energy Efficiency • Energy Storage Community Empowerment • Non-Profits • CDFI's • Labor Unions • Political Organizations Health & Wellness • Medical Facilities • Rehabilitation Centers • Senior Care • Memory Care Housing • Low/Middle Income Housing • Workforce Housing Sustainable Commerce • Manufacturers • Distributors • Service Companies with Sustainable Practices Non-Impact • Other loans (including legacy C&I agreements) that are not mission-aligned
27 Reconciliation of Non-GAAP Financials As of and for the Three Months Ended (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Core operating revenue Net Interest income (GAAP) $ 68,037 $ 67,319 $ 67,280 Non-interest income 10,229 9,406 5,208 Less: Securities (gain) loss 2,774 2,340 3,086 Less: ICS One-Way Sell Fee Income (2,903) — — Less: Subdebt repurchase gain — — (780) Add: Tax (credits) depreciation on solar investments (1,808) (3,251) — Core operating revenue (non-GAAP) $ 76,329 $ 75,814 $ 74,794 Core non-interest expense Non-interest expense (GAAP) $ 38,152 $ 37,752 $ 38,627 Add: Gain on settlement of lease termination 499 — — Less: Severance costs (184) (47) — Core non-interest expense (non-GAAP) $ 38,467 $ 37,705 $ 38,627 Core net income Net Income (GAAP) $ 27,249 $ 22,695 $ 21,338 Less: Securities (gain) loss 2,774 2,340 3,086 Less: ICS One-Way Sell Fee Income (2,903) — — Less: Subdebt repurchase gain — — (780) Less: Gain on settlement of lease termination (499) — — Add: Severance costs 184 47 — Add: Tax (credits) depreciation on solar investments (1,808) (3,251) — Less: Tax on notable items 607 227 (604) Core net income (non-GAAP) $ 25,604 $ 22,058 $ 23,040
28 Reconciliation of Non-GAAP Financials As of and for the Three Months Ended (in thousands) March 31, 2024 December 31, 2023 March 31, 2023 Tangible common equity Stockholders' equity (GAAP) $ 616,938 $ 585,364 $ 519,158 Less: Minority interest (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) Less: Core deposit intangible (2,034) (2,217) (2,883) Tangible common equity (non-GAAP) $ 601,835 $ 570,078 $ 503,206 Average tangible common equity Average stockholders' equity (GAAP) $ 600,759 $ 554,830 $ 502,485 Less: Minority interest (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) Less: Core deposit intangible (2,123) (2,325) (2,991) Average tangible common equity (non-GAAP) $ 585,567 $ 539,436 $ 486,425 Core return on average assets Core net income (non-GAAP)1 $ 26,925 $ 24,455 $ 23,040 Denominator: Total average assets (GAAP) 8,076,563 7,980,509 7,821,851 Core return on average assets (non-GAAP) 1.28% 1.10% 1.19% Core return on average tangible common equity Core net income (non-GAAP)1 $ 26,925 $ 24,455 $ 23,040 Denominator: Average tangible common equity 585,567 539,436 486,425 Core return on average tangible common equity (non-GAAP) 17.59% 16.22% 19.21% Core efficiency ratio Numerator: Core non-interest expense (non-GAAP) $ 38,467 $ 37,705 $ 38,627 Core operating revenue (non-GAAP) 76,329 75,814 74,794 Core efficiency ratio (non-GAAP) 50.40% 49.73% 51.64% 1 Calculated using Core Net Income (non-GAAP) in the numerator as detailed on page 27
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