SEC Filing | Amalgamated Bank

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amal-20220728

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): July 28, 2022 (June 30, 2022)

Amalgamated Financial Corp.

(Exact name of registrant as specified in its charter)

Delaware

001-40136

85-2757101

(State or other jurisdiction
of incorporation)

(Commission File Number)

(I.R.S. Employer Identification
No.)

275 Seventh Avenue, New York, New York 10001

(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):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	AMAL	The Nasdaq Global Market

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).


						Emerging growth company ☒

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 July 28, 2022, Amalgamated Financial Corp. (“Company”) issued a press release announcing financial results for the second quarter ended June 30, 2022. 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 July 28, 2022, the Company will hold an earnings conference call and webcast at 11:00 a.m. (Eastern Time) to discuss financial results for the second quarter ended June 30, 2022. 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

Press Release dated July 28, 2022

99.2

Slide Presentation.

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: July 28, 2022

Document

Amalgamated Financial Corp. Reports Record Second Quarter 2022 Financial Results

NEW YORK, July 28, 2022 – (Globe Newswire) -- Amalgamated Financial Corp. (the “Company” or “Amalgamated”) (Nasdaq: AMAL), the holding company for Amalgamated Bank (the “Bank”), today announced record financial results for the second quarter ended June 30, 2022.

Second Quarter 2022 Highlights

•Record earnings of $19.6 million, or $0.63 per diluted share, compared to $14.2 million, or $0.45 per diluted share, on a linked quarter basis

•Excluding the tax credit or accelerated depreciation impact of our solar tax equity investments, core net income was $20.9 million, or $0.67 per diluted share, as compared to $14.3 million, or $0.45 per diluted share, on a linked quarter basis.

•Deposits increased $317.7 million, or 4.6%, to $7.3 billion on a linked quarter basis and political deposits increased by $131.5 million to $1.3 billion on a linked quarter basis.

•Industry leading average cost of deposits of eight basis points, where non-interest bearing deposits comprised 54% of total deposits.

•Loans, including net deferred origination costs increased $176.3 million, or 5.1%, to $3.6 billion, on a linked quarter basis

•PACE assessments grew $18.5 million to $742.1 million on a linked quarter basis, comprised of a $15.7 million increase in commercial and $2.8 million increase in residential.

•Net interest income grew $8.1 million, or 16.7%, to $56.5 million compared to $48.4 million, while net interest margin grew by 27 basis points to 3.03%, compared to 2.76%, each on a linked quarter basis.

•Credit quality improved with criticized loans declining $43.5 million, or 24.26%, to $135.8 million, on a linked quarter basis.

•Repurchased approximately 463,900 shares, or $8.8 million of common stock under our $40 million share repurchase program announced in the first quarter of 2022.

•Regulatory capital remains above bank “well capitalized” standards.

Priscilla Sims Brown, President and Chief Executive Officer, commented, “As I reflect on my first year as CEO of Amalgamated, we have done what we said we would do. We have implemented our lending strategy and financed these investment through earnings. We leaned deeper into our mission by lending to customer segments focused on sustainability, economic justice, community financing, and other social causes. We built a reliable lending platform staffed with experienced bankers, enabling us to sustain profitable growth and continue developing our industry-leading deposit franchise. And all of these accomplishments have resulted in financial performance that proves socially responsible banking and profitability can exist together to create our uniquely valuable franchise.”

Second Quarter Earnings

Net income for the second quarter of 2022 was $19.6 million, or $0.63 per diluted share, compared to $14.2 million, or $0.45 per diluted share, for the first quarter of 2022. The $5.4 million increase for the second quarter of 2022 compared to the preceding quarter was primarily driven by an $8.1 million increase in net interest income, partially offset by a $0.6 million increase in provision for loan losses, a $0.6 million loss on sales of securities, and a $2.0 million increase in income tax expense related to our increased pre-tax income.

Core net income excluding the effect of tax credits and accelerated depreciation from our solar investments (non-GAAP)1 for the second quarter of 2022 was $20.9 million, or $0.67 per diluted share, compared to $14.3 million, or $0.45 per diluted share, for the first quarter of 2022. Excluded from core net income for the second quarter of 2022 was $0.6 million of non-

[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.

interest income related to losses on sales of securities, $0.3 million of non-interest expenses related to the now-terminated acquisition of Amalgamated Bank of Chicago (“ABOC”), and $0.9 million of accelerated depreciation from our solar investments (recorded as equity method non-interest income). Excluded for the first quarter of 2022 was $0.2 million of non-interest income related to gains on the sale of securities, $0.4 million of non-interest expenses related to the aforementioned terminated acquisition, and $0.1 million of tax credits on solar investments in the first quarter of 2022. Presentation excluding the temporary effect of the tax credits and accelerated depreciation of solar investments reduces the financial statement volatility associated with these investments.

Net interest income was $56.5 million for the second quarter of 2022, compared to $48.4 million for the first quarter of 2022. The $8.1 million increase from the preceding quarter mainly reflected higher interest income on securities and FHLB stock of $4.9 million driven by a $251.3 million increase in average securities and a 37 basis point increase in securities yield due to the rising interest rate environment. Loan interest income increased $2.6 million driven by a $224.1 million increase in average loan balances, offset by slightly higher interest expense on deposits driven by a $127.6 million increase in average interest bearing deposit balances.

Net interest margin was 3.03% for the second quarter of 2022, an increase of 27 basis points from 2.76% in the first quarter of 2022. The margin increase compared to the preceding quarter was driven by large increases on floating rate yields from interest-earning assets, while costs on interest-bearing liabilities remained flat. Prepayment penalties earned in loan income contributed two basis points to our net interest margin in the second quarter of 2022, compared to three basis points in the first quarter of 2022.

Provision for loan losses totaled an expense of $2.9 million for the second quarter of 2022 compared to an expense of $2.3 million in the first quarter of 2022. The increase in the provision expense on a linked quarter basis is primarily driven by a specific reserve from the downgrade of one legacy commercial and industrial loan.

Core non-interest income excluding the effect of tax credits and accelerated depreciation from our solar investments was $8.7 million for the second quarter of 2022, compared to $7.2 million in the first quarter of 2022. The increase of $1.5 million was primarily related to one-time beneficiary income on BOLI, as well as higher gains on sale of nonperforming commercial loans.

Non-interest expense for the second quarter of 2022 was $34.3 million, a decrease of $0.1 million from the first quarter of 2022. The decrease of $0.1 million from the preceding quarter is primarily driven by a $0.9 million decrease to data processing mainly related to the pass-through of certain Trust Department operating expense to related funds, offset by an expected $0.4 million increase in compensation and employee benefits and a $0.4 million increase in residential lending foreclosure expense.

Our provision for income tax expense was $6.9 million for the second quarter of 2022, compared to $4.9 million for the first quarter of 2022. The increase is based on a higher pre-tax income. Our effective tax rate for the second quarter of 2022 was 25.9%, compared to 25.8% for the first quarter of 2022.

Balance Sheet Quarterly Summary

Total assets were $7.9 billion at June 30, 2022, compared to $7.7 billion at March 31, 2022. The increase of $0.2 billion was driven primarily by a $178.2 million increase in loans receivable net of deferred fees and costs and a $113.8 million increase in investment securities offset by a reduction in cash of $41.5 million. To reduce exposure to interest rate volatility we also transferred $277.3 million of available-for-sale securities to held-to-maturity, resulting in $12.3 million of tax effected other comprehensive losses which will accrete out of balance sheet equity over the duration of the transferred securities.

Total loans, net of deferred loan origination costs at June 30, 2022 were $3.6 billion, an increase of $178.2 million, or 5.1%, compared to March 31, 2022. The increase in loans is primarily driven by a $92.9 million increase in residential loans mainly from direct originations, a $39.8 million increase in multifamily loans, a $36.9 million increase in our consumer and other loans due to solar loan originations from existing flow arrangements, and a $19.2 million increase in commercial and industrial loans, offset by a $13.2 million decrease in the commercial real estate portfolio as we selectively de-risk our exposure in metropolitan areas. Our continued focus on credit quality improvement in the commercial portfolio resulted in $15.6 million of payoffs of criticized loans in addition to certain other pass grade loans.

Deposits at June 30, 2022 were $7.3 billion, an increase of $317.7 million, or 4.6%, as compared to $7.0 billion as of March 31, 2022. Deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $1.3 billion as of June 30, 2022, an increase of $131.5 million on a linked quarter basis.

Noninterest-bearing deposits represent 54% of average deposits and 54% of ending deposits for the quarter ended June 30, 2022, contributing to an average cost of deposits of eight basis points in the second quarter of 2022.

Nonperforming assets totaled $65.3 million, or 0.82% of period-end total assets at June 30, 2022, an increase of $4.2 million, compared with $61.1 million, or 0.80% of period-end total assets at March 31, 2022. The increase in non-performing assets was primarily driven by the restructuring of $6.5 million in loans that are part of one borrower relationship, as well as two loans totaling $5.2 million that were moved to nonaccrual in the second quarter of 2022, partially offset by one $3.5 million nonaccrual multifamily loan that was paid off.

The allowance for loan losses increased $2.0 million to $39.5 million at June 30, 2022 from $37.5 million at March 31, 2022, primarily due to increases in loan balances, offset by improved credit quality. At June 30, 2022, we had $60.1 million of impaired loans for which there was a specific allowance of $6.1 million, compared to $58.2 million of impaired loans at March 31, 2022 for which there was a specific allowance of $4.6 million. The ratio of allowance to total loans was 1.08% at June 30, 2022 and 1.08% at March 31, 2022.

Capital Quarterly Summary

As of June 30, 2022, our Common Equity Tier 1 Capital Ratio was 11.76%, Total Risk-Based Capital Ratio was 14.42%, and Tier-1 Leverage Capital Ratio was 7.08%, compared to 12.36%, 15.16%, and 7.34%, respectively, as of March 31, 2022. Stockholders’ equity at June 30, 2022 was $498.0 million, compared to $526.8 million at March 31, 2022. The decrease in stockholders’ equity was driven by a $37.4 million increase in accumulated other comprehensive loss due to the tax effected mark-to-market on our securities portfolio and a $8.5 million decrease in additional paid-in capital due to our common stock repurchase activity, partially offset by $19.6 million of net income for the quarter.

Our tangible book value per share was $15.69 as of June 30, 2022 compared to $16.45 as of March 31, 2022, primarily as a result of a $37.4 million decline from the previous quarter in the tax effected mark-to-market adjustment for the fair value of our available-for-sale securities portfolio. The mark-to-market adjustment had no impact on our Tier 1 Capital Ratio or other risk based ratios. Tangible common equity was 6.07% of total assets, compared to 6.68% as of March 31, 2022.

Conference Call

As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its second quarter 2022 results today, July 28th, 2022 at 11:00am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. Second Quarter 2022 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13730114. The telephonic replay will be available until August 5, 2022.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of our website at http://ir.amalgamatedbank.com/. The online replay will remain available for a limited time beginning immediately following the call.

The presentation materials for the call can be accessed on the investor relations section of our website at http://ir.amalgamatedbank.com/.

About Amalgamated Financial Corp.

Amalgamated Financial Corp. is a Delaware public benefit corporation and a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank. Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of six branches in New York City, Washington D.C., San Francisco, and Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country's oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. As of June 30, 2022, our total assets were $7.9 billion, total net loans were $3.6 billion, and total deposits were $7.3 billion. Additionally, as of June 30, 2022, our trust business held $38.9 billion in assets under custody and $12.9 billion in assets under management.

Non-GAAP Financial Measures

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

Our management utilizes this information to compare our operating performance for June 30, 2022 versus certain periods in 2022 and 2021 and to prepare internal projections. We believe these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of our operating performance. In addition, because intangible assets such as goodwill and other discrete items unrelated to our core business, which are excluded, vary extensively from company to company, we believe that the presentation of this information allows investors to more easily compare our results to those of other companies.

The presentation of non-GAAP financial information, however, is not intended to be considered in isolation or as a substitute for GAAP financial measures. We strongly encourage readers to review the GAAP financial measures included in this release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this release with other companies’ non-GAAP financial measures having the same or similar names. Reconciliations of non-GAAP financial disclosures to comparable GAAP measures found in this release are set forth in the final pages of this release and also may be viewed on our website, amalgamatedbank.com.

Terminology

Certain terms used in this release are defined as follows:

“Core operating revenue” is defined as total net interest income plus “core non-interest income”, defined as non-interest income excluding gains and losses on sales of securities and gains on the sale of owned property. We believe the most directly comparable GAAP financial measure is the total of net interest income and non-interest income.

“Core operating revenue excluding solar tax impact” is defined as total net interest income plus non-interest income excluding gains and losses on sales of securities, gains on the sale of owned property, and tax credits and depreciation on solar equity investments. We believe the most directly comparable GAAP financial measure is the total of net interest income and non-interest income.

“Core non-interest expense” is defined as total non-interest expense excluding costs related to branch closures and restructuring/severance costs. We believe the most directly comparable GAAP financial measure is total non-interest expense.

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

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

“Tangible common equity”, and “Tangible book value” are defined as stockholders’ equity excluding, as applicable, minority interests, preferred stock, goodwill and core deposit intangibles. We believe that the most directly comparable GAAP financial measure is total stockholders’ equity.

“Core return on average assets” is defined as “Core net income” divided by average total assets. We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets.

“Core return on average assets excluding solar tax impact” is defined as “Core net income excluding solar tax impact” divided by average total assets. We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets.

“Core return on average tangible common equity” is defined as “Core net income” divided by “Average tangible common equity.” We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders’ equity.

“Core return on average tangible common equity excluding solar tax impact” is defined as “Core net income excluding solar tax impact” divided by “Average tangible common equity.” We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders’ equity.

“Core efficiency ratio” is defined as “Core non-interest expense” divided by “Core operating revenue.” We believe the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income.

“Core efficiency ratio excluding solar tax impact” is defined as “Core non-interest expense” divided by “Core operating revenue excluding solar tax impact.” We believe the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income.

Forward-Looking Statements

Statements included in this release that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified through the use of forward-looking terminology such as “may,” “will,” “anticipate,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “in the future,” “may” and “intend,” as well as other similar words and expressions of the future, and in this release include statements related to the tax effected other comprehensive losses cycling out of balance sheet equity in the future. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any or all of which could cause actual results to differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: (i) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (ii) continued fluctuation of the interest rate environment; (iii) our inability to maintain the historical growth rate of the loan portfolio; (iv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (v) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on our results, including as a result of compression to net interest margin; (vi) greater than anticipated adverse conditions in the national or local economies including in our core markets, including, but not limited to, the negative impacts and disruptions resulting from the outbreak of the novel coronavirus, or COVID-19, which may continue to have an adverse impact on our business, operations and performance, and could continue to have a negative impact on our credit portfolio, share price, borrowers, and on the economy as a whole, both domestically and globally; (vii) fluctuations or unanticipated changes in interest rates on loans or deposits or that affect the yield curve; (vii) any matter that would cause us to conclude that there was impairment of any asset, including intangible assets; (ix) the results of regulatory examinations; (x) potential deterioration in real estate values; (xi) changes in legislation, regulation, policies, or administrative practices, whether by judicial, governmental, or legislative action; (xii) the risk that the preliminary financial information reported herein and our current preliminary analysis will be different when our review is finalized; (xii) increased competition for experienced executives in the banking industry; (xiv) a failure in or breach of our operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; and (xv) the outcome of any legal proceedings that may be instituted against us in connection with the termination of the merger agreement with ABOC. Additional factors which could affect the forward-looking statements can be found in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at https://www.sec.gov/. We disclaim any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:

Jamie Lillis

Solebury Trout

shareholderrelations@amalgamatedbank.com

800-895-4172

Consolidated Statements of Income (unaudited)


	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
($ in thousands)	2022		2022		2021		2022		2021
INTEREST AND DIVIDEND INCOME
Loans	$	33,766	$	31,127	$	30,156	$	64,893	$	61,265
Securities	24,307		19,115		13,094		43,422		25,264
Federal Home Loan Bank of New York stock	45		40		41		85		89
Interest-bearing deposits in banks	551		179		131		730		221
Total interest and dividend income	58,669		50,461		43,422		109,130		86,839
INTEREST EXPENSE
Deposits	1,481		1,402		1,431		2,883		3,003
Borrowed funds	690		691		—		1,381		—
Total interest expense	2,171		2,093		1,431		4,264		3,003
NET INTEREST INCOME	56,498		48,368		41,991		104,866		83,836
Provision for (recovery of) loan losses	2,912		2,293		1,682		5,205		(1,579)
Net interest income after provision for loan losses	53,586		46,075		40,309		99,661		85,415
NON-INTEREST INCOME
Trust Department fees	3,479		3,491		3,292		6,970		7,118
Service charges on deposit accounts	2,826		2,447		2,296		5,273		4,475
Bank-owned life insurance	1,283		814		531		2,097		1,319
Gain (loss) on sale of securities	(582)		162		321		(420)		342
Gain (loss) on sale of loans, net	492		(157)		720		335		1,426
Gain (loss) on other real estate owned, net	—		—		(407)		—		(407)
Equity method investments	(638)		432		(1,555)		(206)		(5,237)
Other	386		233		129		619		290
Total non-interest income	7,246		7,422		5,327		14,668		9,326
NON-INTEREST EXPENSE
Compensation and employee benefits	18,046		17,669		16,964		35,715		35,003
Occupancy and depreciation	3,457		3,440		3,352		6,897		6,853
Professional fees	2,745		2,815		3,211		5,560		6,871

Data processing	4,327		5,184		3,322		9,511		6,327
Office maintenance and depreciation	784		725		820		1,509		1,475
Amortization of intangible assets	261		262		302		523		604

Advertising and promotion	761		854		628		1,615		1,225

Other	3,965		3,448		2,796		7,413		5,831
Total non-interest expense	34,346		34,397		31,395		68,743		64,189
Income before income taxes	26,486		19,100		14,241		45,586		30,552
Income tax expense (benefit)	6,873		4,935		3,833		11,808		7,955
Net income	$	19,613	$	14,165	$	10,408	$	33,778	$	22,597


Earnings per common share - basic	$	0.64	$	0.46	$	0.33	$	1.09	$	0.73
Earnings per common share - diluted	$	0.63	$	0.45	$	0.33	$	1.08	$	0.72

Consolidated Statements of Financial Condition


($ in thousands)	June 30, 2022		December 31, 2021
Assets	(unaudited)
Cash and due from banks	$	6,075	$	8,622
Interest-bearing deposits in banks	326,463		321,863
Total cash and cash equivalents	332,538		330,485
Securities:
Available for sale, at fair value (amortized cost of $2,193,657 and $2,103,049, respectively)	2,105,547		2,113,410
Held-to-maturity (fair value of $1,317,058 and $849,704, respectively)	1,375,666		843,569
Loans held for sale	5,657		3,279
Loans receivable, net of deferred loan origination costs (fees)	3,648,404		3,312,224
Allowance for loan losses	(39,477)		(35,866)
Loans receivable, net	3,608,927		3,276,358

Resell agreements	225,926		229,018
Accrued interest and dividends receivable	31,001		28,820
Premises and equipment, net	10,870		11,735
Bank-owned life insurance	106,163		107,266
Right-of-use lease asset	31,728		33,115
Deferred tax asset	56,194		26,719
Goodwill	12,936		12,936

Other intangible assets	3,628		4,151
Equity investments	6,271		6,856
Other assets	30,205		50,159
Total assets	$	7,943,257	$	7,077,876
Liabilities
Deposits	$	7,291,167	$	6,356,255
Subordinated debt	83,899		83,831

Operating leases	45,605		48,160
Other liabilities	24,545		25,755
Total liabilities	7,445,216		6,514,001


Stockholders’ equity
Common stock, par value $.01 per share (70,000,000 shares authorized; 30,684,246 and 31,130,143 shares issued and outstanding, respectively)	307		311
Additional paid-in capital	286,901		297,975
Retained earnings	288,868		260,047



Accumulated other comprehensive income (loss), net of income taxes	(78,168)		5,409
Total Amalgamated Financial Corp. stockholders' equity	497,908		563,742
Noncontrolling interests	133		133
Total stockholders' equity	498,041		563,875
Total liabilities and stockholders’ equity	$	7,943,257	$	7,077,876

Select Financial Data


	As of and for the						As of and for the
	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(Shares in thousands)	2022		2022		2021		2022		2021
Selected Financial Ratios and Other Data:
Earnings per share
Basic	$	0.64	$	0.46	$	0.33	$	1.09	$	0.73
Diluted	0.63		0.45		0.33		1.08		0.72
Core net income (non-GAAP)
Basic	$	0.66	$	0.46	$	0.33	$	1.12	$	0.74
Diluted	0.65		0.46		0.32		1.11		0.73
Core net income excluding solar tax impact (non-GAAP)
Basic	$	0.68	$	0.46	$	0.37	$	1.14	$	0.88
Diluted	0.67		0.45		0.36		1.12		0.87
Book value per common share (excluding minority interest)	$	16.23	$	16.99	$	17.64	$	16.23	$	17.64
Tangible book value per share (non-GAAP)	$	15.69	$	16.45	$	17.07	$	15.69	$	17.07
Common shares outstanding	30,684		30,995		31,074		30,684		31,074
Weighted average common shares outstanding, basic	30,818		31,107		31,136		30,962		31,109
Weighted average common shares outstanding, diluted	31,189		31,456		31,572		31,332		31,545

Select Financial Data


	As of and for the						As of and for the
	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
	2022		2022		2021		2022		2021
Selected Performance Metrics:
Return on average assets	1.01	%	0.78	%	0.65	%	0.90	%	0.72	%
Core return on average assets (non-GAAP)	1.05	%	0.79	%	0.64	%	0.92	%	0.74	%
Core return on average assets excluding solar tax impact (non-GAAP)	1.08	%	0.79	%	0.72	%	0.94	%	0.87	%
Return on average equity	15.20	%	10.25	%	7.62	%	12.64	%	8.36	%
Core return on average tangible common equity (non-GAAP)	16.25	%	10.72	%	7.70	%	13.38	%	8.86	%
Core return on average tangible common equity excluding solar tax impact (non-GAAP)	16.76	%	10.68	%	8.68	%	13.61	%	10.44	%
Average equity to average assets	6.67	%	7.58	%	8.57	%	7.11	%	8.63	%
Tangible common equity to tangible assets	6.07	%	6.68	%	8.09	%	6.07	%	8.09	%
Loan yield	3.86	%	3.85	%	3.82	%	3.86	%	3.83	%
Securities yield	2.66	%	2.28	%	2.15	%	2.48	%	2.17	%
Deposit cost	0.08	%	0.09	%	0.10	%	0.08	%	0.11	%
Net interest margin	3.03	%	2.76	%	2.75	%	2.90	%	2.80	%
Efficiency ratio (1)	53.88	%	61.65	%	66.35	%	57.51	%	68.90	%
Core efficiency ratio (non-GAAP)	52.90	%	61.07	%	66.80	%	56.69	%	67.98	%
Core efficiency ratio excluding solar tax impact (non-GAAP)	52.20	%	61.14	%	64.39	%	56.32	%	64.11	%

Asset Quality Ratios:
Nonaccrual loans to total loans	0.67	%	0.84	%	1.64	%	0.67	%	1.64	%
Nonperforming assets to total assets	0.82	%	0.80	%	1.08	%	0.82	%	1.08	%
Allowance for loan losses to nonaccrual loans	161.81	%	129.71	%	73.20	%	161.81	%	73.20	%
Allowance for loan losses to total loans	1.08	%	1.08	%	1.20	%	1.08	%	1.20	%
Annualized net charge-offs (recoveries) to average loans	0.11	%	0.08	%	0.04	%	0.09	%	0.12	%

Capital Ratios:
Tier 1 leverage capital ratio	7.08	%	7.34	%	7.93	%	7.08	%	7.93	%
Tier 1 risk-based capital ratio	11.76	%	12.36	%	13.63	%	11.76	%	13.63	%
Total risk-based capital ratio	14.42	%	15.16	%	14.68	%	14.42	%	14.68	%
Common equity tier 1 capital ratio	11.76	%	12.36	%	13.63	%	11.76	%	13.63	%

(1) Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income

Loan and Held-to-Maturity Securities Portfolio Composition


(In thousands)	At June 30, 2022			At March 31, 2022				At June 30, 2021
	Amount		% of total loans	Amount		% of total loans		Amount		% of total loans
Commercial portfolio:
Commercial and industrial	$	743,403	20.4%	$	724,177	20.9	%	$	619,037	19.5%
Multifamily	853,514		23.4%	813,702		23.5	%	848,651		26.8%
Commercial real estate	340,987		9.4%	354,174		10.2	%	351,707		11.1%
Construction and land development	43,212		1.2%	40,242		1.2	%	42,303		1.3%
Total commercial portfolio	1,981,116		54.4%	1,932,295		55.8	%	1,861,698		58.7%

Retail portfolio:
Residential real estate lending	1,236,088		33.9%	1,143,175		33.0	%	1,085,791		34.3%

Consumer and other	426,394		11.7%	389,452		11.2	%	222,265		7.0%
Total retail	1,662,482		45.6%	1,532,627		44.2	%	1,308,056		41.3%
Total loans held for investment	3,643,598		100.0%	3,464,922		100.0	%	3,169,754		100.0%

Net deferred loan origination costs (fees)	4,806			5,252				5,707
Allowance for loan losses	(39,477)			(37,542)				(38,012)
Total loans, net	$	3,608,927		$	3,432,632			$	3,137,449

Held-to-maturity securities portfolio:
PACE assessments	$	742,146	53.9%	$	723,646	76.5%		$	545,795	87.4%
Other securities	633,520		46.1%	222,701		23.5%		79,031		12.6%
Total held-to-maturity securities	$	1,375,666	100.0%	$	946,347	100.0%		$	624,826	100.0%

Net Interest Income Analysis


	Three Months Ended
	June 30, 2022							March 31, 2022							June 30, 2021
(In thousands)	Average Balance		Income / Expense			Yield / Rate		Average Balance		Income / Expense			Yield / Rate		Average Balance		Income / Expense			Yield / Rate

Interest earning assets:
Interest-bearing deposits in banks	$	305,134		$	551	0.72	%	$	423,878		$	179	0.17	%	$	510,473		$	131	0.10	%
Securities and FHLB stock	3,443,987			23,308		2.71	%	3,192,642			18,435		2.34	%	2,298,264			12,651		2.21	%
Resell Agreements	231,468			1,044		1.81	%	219,221			720		1.33	%	148,977			484		1.30	%

Total loans, net (1)(2)	3,504,223			33,766		3.86	%	3,280,115			31,127		3.85	%	3,162,896			30,156		3.82	%
Total interest earning assets	7,484,812			58,669		3.14	%	7,115,856			50,461		2.88	%	6,120,610			43,422		2.85	%
Non-interest earning assets:
Cash and due from banks	9,296							9,226							7,545
Other assets	266,186							267,689							266,613
Total assets	$	7,760,294						$	7,392,771						$	6,394,768

Interest bearing liabilities:
Savings, NOW and money market deposits	$	3,030,788		$	1,332	0.18	%	$	2,896,086		$	1,247	0.17	%	$	2,567,396		$	1,174	0.18	%
Time deposits	192,181			149		0.31	%	199,340			155		0.32	%	258,257			257		0.40	%
Total deposits	3,222,969			1,481		0.18	%	3,095,426			1,402		0.18	%	2,825,653			1,431		0.20	%

Other Borrowings	83,886			690		3.30	%	84,597			691		3.31	%	—			—		0.00	%

Total interest bearing liabilities	3,306,855			2,171		0.26	%	3,180,023			2,093		0.27	%	2,825,653			1,431		0.20	%
Non-interest bearing liabilities:
Demand and transaction deposits	3,855,735							3,549,483							2,909,555
Other liabilities	80,274							102,874							111,794
Total liabilities	7,242,864							6,832,380							5,847,002
Stockholders' equity	517,430							560,391							547,766
Total liabilities and stockholders' equity	$	7,760,294						$	7,392,771						$	6,394,768

Net interest income / interest rate spread				$	56,498	2.88	%				$	48,368	2.61	%				$	41,991	2.65	%
Net interest earning assets / net interest margin	$	4,177,957				3.03	%	$	3,935,833				2.76	%	$	3,294,957				2.75	%

Total Cost of Deposits						0.08	%						0.09	%						0.10	%

(1) Amounts are net of deferred origination costs (fees) and the allowance for loan losses

(2) Includes prepayment penalty interest income in 2Q2022, 1Q2022, and 2Q2021 of $379, $399, and $504, respectively (in thousands)

Net Interest Income Analysis


	Six Months Ended
	June 30, 2022							June 30, 2021
(In thousands)	Average Balance		Income / Expense			Yield / Rate		Average Balance		Income / Expense			Yield / Rate

Interest earning assets:
Interest-bearing deposits in banks	$	364,178		$	730	0.40	%	$	445,340		$	221	0.10	%
Securities and FHLB stock	3,319,009			41,743		2.54	%	2,208,263			24,451		2.23	%
Resell Agreements	225,378			1,764		1.58	%	151,607			902		1.20	%

Total loans, net (1)(2)	3,392,788			64,893		3.86	%	3,228,235			61,265		3.83	%
Total interest earning assets	7,301,353			109,130		3.01	%	6,033,445			86,839		2.90	%
Non-interest earning assets:
Cash and due from banks	9,261							7,432
Other assets	266,932							272,930
Total assets	$	7,577,546						$	6,313,807

Interest bearing liabilities:
Savings, NOW and money market deposits	$	2,963,809		$	2,579	0.18	%	$	2,540,277		$	2,395	0.19	%
Time deposits	195,741			304		0.31	%	269,063			608		0.46	%
Total deposits	3,159,550			2,883		0.18	%	2,809,340			3,003		0.22	%

Other Borrowings	84,239			1,381		3.31	%	249			—		0.00	%

Total interest bearing liabilities	3,243,789			4,264		0.27	%	2,809,589			3,003		0.22	%
Non-interest bearing liabilities:
Demand and transaction deposits	3,703,455							2,848,401
Other liabilities	91,510							110,654
Total liabilities	7,038,754							5,768,644
Stockholders' equity	538,792							545,163
Total liabilities and stockholders' equity	$	7,577,546						$	6,313,807

Net interest income / interest rate spread				$	104,866	2.74	%				$	83,836	2.68	%
Net interest earning assets / net interest margin	$	4,057,564				2.90	%	$	3,223,856				2.80	%

Total Cost of Deposits						0.08	%						0.11	%

(1) Amounts are net of deferred origination costs (fees) and the allowance for loan losses

(2) Includes prepayment penalty interest income in June YTD 2022 and June YTD 2021 of $778 and $1,146, respectively (in thousands)

Deposit Portfolio Composition


(In thousands)	June 30, 2022		March 31, 2022		June 30, 2021

Non-interest bearing demand deposit accounts	$	3,965,907	$	3,759,349	$	2,948,718
NOW accounts	208,795		212,550		200,758
Money market deposit accounts	2,540,657		2,416,201		2,136,719
Savings accounts	388,185		386,253		371,047
Time deposits	187,623		199,120		252,750

Total deposits	$	7,291,167	$	6,973,473	$	5,909,992


	Three Months Ended
	June 30, 2022				March 31, 2022				June 30, 2021
(In thousands)	Average Balance		Average Rate Paid		Average Balance		Average Rate Paid		Average Balance		Average Rate Paid

Non-interest bearing demand deposit accounts	$3,855,735		0.00	%	$3,549,482		0.00	%	$2,909,554		0.00	%
NOW accounts	211,007		0.09	%	208,134		0.08	%	204,341		0.08	%
Money market deposit accounts	2,431,571		0.19	%	2,310,294		0.19	%	1,993,643		0.21	%
Savings accounts	388,210		0.11	%	377,659		0.11	%	369,412		0.10	%
Time deposits	192,181		0.31	%	199,340		0.32	%	258,257		0.43	%

Total deposits	$	7,078,704	0.08	%	$	6,644,909	0.09	%	$	5,735,207	0.10	%

Asset Quality


(In thousands)	June 30, 2022			March 31, 2022			June 30, 2021
Loans 90 days past due and accruing	$	—		$	—		$	—
Nonaccrual loans held for sale	4,841			2,490			—
Nonaccrual loans excluding held for sale loans and restructured loans	8,109			10,835			31,437
Troubled debt restructured loans - nonaccrual	16,288			18,107			20,494
Troubled debt restructured loans - accruing	35,683			29,259			18,683
Other real estate owned	307			307			307
Impaired securities	56			59			59
Total nonperforming assets	$	65,284		$	61,057		$	70,980

Nonaccrual loans:
Commercial and industrial	$	9,550		$	8,099		$	14,561
Multifamily	3,494			3,537			10,266
Commercial real estate	3,931			3,988			4,066
Construction and land development	5,053			5,053			—
Total commercial portfolio	22,028			20,677			28,893

Residential real estate lending	898			7,404			22,320


Consumer and other	1,471			861			718
Total retail portfolio	2,369			8,265			23,038
Total nonaccrual loans	$	24,397		$	28,942		$	51,931

Nonaccrual loans to total loans	0.67		%	0.84		%	1.64		%
Nonperforming assets to total assets	0.82		%	0.80		%	1.08		%
Allowance for loan losses to nonaccrual loans	161.81		%	129.71		%	73.20		%
Allowance for loan losses to total loans	1.08		%	1.08		%	1.20		%
Annualized net charge-offs (recoveries) to average loans	0.11		%	0.08		%	0.04		%

Credit Quality


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




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




	June 30, 2021
($ in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial and industrial	$	568,878	$	17,569	$	32,133	$	457	$	619,037
Multifamily	711,551		101,579		32,348		3,173		848,651
Commercial real estate	234,018		45,236		72,453		—		351,707
Construction and land development	34,414		535		7,354		—		42,303
Residential real estate lending	1,063,176		295		22,320		—		1,085,791
Consumer and other	221,835		—		430		—		222,265
Total loans	$	2,833,872	$	165,214	$	167,038	$	3,630	$	3,169,754

Reconciliation of GAAP to Non-GAAP Financial Measures

The information provided below presents a reconciliation of each of our non-GAAP financial measures to the most directly comparable GAAP financial measure.


	As of and for the						As of and for the
	Three Months Ended						Six Months Ended
(in thousands)	June 30, 2022		March 31, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Core operating revenue
Net Interest income (GAAP)	$	56,498	$	48,368	$	41,991	$	104,866	$	83,836
Non-interest income	7,246		7,422		5,327		14,668		9,327

Less: Securities (gain) loss	582		(162)		(321)		420		(339)
Core operating revenue (non-GAAP)	64,326		55,628		46,997		119,954		92,824
Add: Tax (credits) depreciation on solar investments	862		(64)		1,760		798		5,597
Core operating revenue excluding solar tax impact (non-GAAP)	65,188		55,564		48,757		120,752		98,421

Core non-interest expense
Non-interest expense (GAAP)	$	34,346	$	34,397	$	31,395	$	68,743	$	64,189




Less: Severance (1)	(34)		(52)		—		(86)		(1,090)
Less: ABOC	(282)		(371)		—		(653)		—

Core non-interest expense (non-GAAP)	34,030		33,974		31,395		68,004		63,099

Core net income
Net Income (GAAP)	$	19,613	$	14,165	$	10,408	$	33,778	$	22,598

Less: Securities (gain) loss	582		(162)		(321)		420		(339)




Add: Severance (1)	34		52		—		86		1,090
Add: ABOC	282		371		—		653		—
Less: Tax on notable items	(233)		(67)		86		(300)		(196)
Core net income (non-GAAP)	20,278		14,359		10,173		34,637		23,153
Add: Tax (credits) depreciation on solar investments	862		(64)		1,760		798		5,597
Add: Tax effect of solar income	(224)		17		(474)		(207)		(1,457)
Core net income excluding solar tax impact (non-GAAP)	20,916		14,312		11,459		35,228		27,293

Tangible common equity
Stockholders' equity (GAAP)	$	498,041	$	526,762	$	548,211	$	498,041	$	548,211
Less: Minority interest	(133)		(133)		(133)		(133)		(133)
Less: Goodwill	(12,936)		(12,936)		(12,936)		(12,936)		(12,936)
Less: Core deposit intangible	(3,628)		(3,890)		(4,755)		(3,628)		(4,755)
Tangible common equity (non-GAAP)	481,344		509,803		530,387		481,344		530,387

Average tangible common equity
Average stockholders' equity (GAAP)	$	517,430	$	560,391	$	547,766	$	538,792	$	545,163
Less: Minority interest	(133)		(133)		(133)		(133)		(133)
Less: Goodwill	(12,936)		(12,936)		(12,936)		(12,936)		(12,936)
Less: Core deposit intangible	(3,755)		(4,017)		(4,903)		(3,886)		(5,052)
Average tangible common equity (non-GAAP)	500,606		543,305		529,794		521,837		527,042

Core return on average assets

Denominator: Total average assets	7,760,294		7,392,773		6,394,768		7,577,547		6,313,807
Core return on average assets (non-GAAP)	1.05%		0.79%		0.64%		0.92%		0.74%
Core return on average assets excluding solar tax impact (non-GAAP)	1.08%		0.79%		0.72%		0.94%		0.87%

Core return on average tangible common equity

Denominator: Average tangible common equity	500,606		543,305		529,794		521,837		527,042
Core return on average tangible common equity (non-GAAP)	16.25%		10.72%		7.70%		13.38%		8.86%
Core return on average tangible common equity excluding solar tax impact (non-GAAP)	16.76%		10.68%		8.68%		13.61%		10.44%

Core efficiency ratio
Numerator: Core non-interest expense (non-GAAP)	$	34,030	$	33,974	$	31,395	$	68,004	$	63,099

Core efficiency ratio (non-GAAP)	52.90%		61.07%		66.80%		56.69%		67.98%
Core efficiency ratio excluding solar tax impact (non-GAAP)	52.20%		61.14%		64.39%		56.32%		64.11%

(1) Salary and COBRA reimbursement expense for positions eliminated

a202206_amalearningsdeck

amalgamatedbank.com Member FDIC Amalgamated Financial Corp. Second Quarter 2022 Earnings Presentation July 28, 2022

2 Safe Harbor Statements INTRODUCTION On March 1, 2021 (the “Effective Date”), Amalgamated Financial Corp. (the “Company”) completed its holding company reorganization and acquired all of the outstanding stock of Amalgamated Bank (the “Bank”). In this presentation, unless the context indicates otherwise, references to “we,” “us,” and “our” refer to the Company and the Bank. However, if the discussion relates to a period before the Effective Date, the terms refer only to the Bank. FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. any statement that does not describe historical or current facts is a forward-looking statement. These statements generally can be identified by forward-looking terminology, such as “plan,” “seek to,” “outlook,” “guidance,” “may,” “will,” “anticipate,” “should,” “would,” “believe,” “contemplate,” “forecast,” “expect,” “estimate,” “continue,” “initiatives,” and “intend,” as well as other similar words and expressions of the future. These forward-looking statements include, but are not limited to, our 2022 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: • 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; • the COVID-19 pandemic and its continuing effects on the economic and business environments in which we operate; • continuation of the interest rate environment; • 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 either as they currently exist or as they may be affected by conditions associated with the COVID-19 pandemic; • 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; • our ability to meet heightened regulatory and supervisory requirements; • our ability to grow and retain low-cost core deposits and retain large, uninsured deposits; • any matter that would cause us to conclude that there was impairment of any asset, including intangible assets; • 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, the risk of any of which could be exacerbated by employees and others working remotely as a result of the effects of the COVID-19 pandemic; • volatile credit and financial markets both domestic and foreign; • the risk that the preliminary financial information reported herein and our current preliminary analysis could be different when our review is finalized; • unexpected challenges related to our executive officer retention; and • the outcome of any legal proceedings that may be instituted against us in connection with the termination of the merger agreement with ABOC. Additional factors which could affect the forward-looking statements can be found in our Annual 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/. Forward-looking statements are based upon the current beliefs and expectations of management, and on information currently available to management. 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.

3 Safe Harbor Statements cont. 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.

2Q22 Highlights 4 1. See non-GAAP disclosures on pages 22-23 2. Pre-tax, pre-provision income is defined as net interest income plus non-interest income less non-interest expense INCOME STATEMENT • Record earnings of $19.6 million, or $0.63 per diluted share on a GAAP basis; • Core net income excluding the tax credit or accelerated depreciation impact of solar tax equity investments was $20.9 million, or $0.67 per diluted share(1) • Core pre-tax, pre-provision income(2) excluding the tax credit or accelerated depreciation impact of solar tax equity investments(1) of $31.2 million compared to $21.6 million in 1Q22 • Core efficiency ratio excluding the tax credit or accelerated depreciation impact of solar tax equity investments(1) was 52.20% and 61.14% in 2Q22 and 1Q22, respectively BALANCE SHEET • Deposits increased $317.7 million compared to 1Q22 primarily due to continued growth in political deposits and new relationships in core markets • Loans, including net deferred costs increased $176.3 million, or 5.1%, to $3.6 billion, on a linked quarter basis • Net interest margin improved to 3.03% in 2Q22, an increase of 27 basis points from 2.76% in 1Q22 CAPITAL • Capital ratios remained strong with CET1 of 11.76% and Tier 1 Leverage of 7.08% • Tangible book value per share of $15.69 compared to $16.45 as of 1Q22

-$3.8 -$1.8 -$0.8 $5.3 $0.1 -$0.9 -$1.3 -$3.8 $0.0 $0.2 $0.2 $0.5 $0.3 $0.3 $0.3 $1.2 $5.0 Tax credits (accelerated depreciation) on solar investments Steady state solar income 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 FY22 FY23-25 Solar Tax-Equity Investments OVERVIEW OF SOLAR TAX EQUITY INVESTMENTS • Immediate realization of tax benefits and subsequent accelerated depreciation of the value of the investment creates volatility in the GAAP and core earnings presentations • Metrics excluding the impact of tax credits or accelerated depreciation is a meaningful way to evaluate the current performance of the Company and are adjusted in accordance with the below • Steady state income is generally achieved within 4 quarters of initial investment and all investments are net profitable over their lives (generally 5 years) • We expect more solar tax-equity investment initiatives in the future (not shown in forecast below) 5 ACTUAL AND PROJECTED SOLAR INCOME(1)(2)(3) $ millions Actual Forecast (1) Actual 1Q22 and Q222 results and projected solar income forecasts have been revised modestly since 4Q 2021 (2) Balances presented are not tax effected (3) Refer to Reconciliation of Non-GAAP Financial Measures on slides 22-23 for further details on impact to key ratios

Ending Deposits $56.2 $69.4 $84.9 $73.3 $106.4 2018 2019 2020 2021 June YTD Trends 6 KEY FINANCIAL TRENDS THROUGH 2Q22 ($ in millions) (1) Compounded Annual Growth Rate (“CAGR”) (2) See solar tax investment slide 5 for components of income exclusions (3) June YTD 2022 earnings are annualized (4) GAAP Pre-tax, pre-provision income was $102.4 million annualized in 2022, $70.4 million in 2021, and $86.7 in 2020, the only years impacted by our solar investments 7.0% CAGR(1) 13.6% CAGR(1) 17.2% CAGR(1) NPA / Total Assets Loans + PACE $4,105 $4,641 $5,339 $6,356 $7,291 2018 2019 2020 2021 2Q22 1.27% 1.25% 1.38% 0.77% 0.82% 2018 2019 2020 2021 2Q22 $3,211 $3,703 $3,868 $3,904 $4,351 $3,211 $3,439 $3,447 $3,276 $3,609 $264 $421 $627 $742 2018 2019 2020 2021 2Q22 >> 2.6% CAGR(1) (Loans) Core Pre-Tax Pre-Provision Earnings(2)(3)(4) excluding tax credits (accelerated depreciation) on solar investments

Deposit Portfolio 7 2Q22 HIGHLIGHTS • Total ending deposits increased $317.7 million compared to 1Q22 due to momentum in all customer segments, including political deposits related to upcoming elections, and new relationships in core markets ◦ Political deposits make up 17.6% of the total deposit portfolio, and grew $131.5 million in Q2 ◦ Key highlights of the non-political deposit growth are: ▪ $31.0 million came from new relationships to the bank this quarter ▪ $63.0 million came from from existing relationships across various segments, including non-profit, public health delivery, and climate advocacy • Total average deposits increased $433.8 million • Total cost of funds of 8 basis points, compared to 9 basis points in Q1; interest bearing deposit cost was 18 basis points in both Q1 and Q2 • Non-interest bearing deposits represented 54.4% of ending deposits in 2Q22, compared to 53.9% in 1Q22 TOTAL DEPOSITS ($ in billions) $5.9 $6.2 $6.4 $7.0 $7.3 $5.1 $5.2 $5.4 $5.9 $6.0 $0.8 $1.0 $1.0 $1.1 $1.3 Political Other Deposits 2Q21 3Q21 4Q21 1Q22 2Q22

Interest Earning Assets 8 INTEREST EARNING ASSETS OF $7.7B AS OF JUNE 30, 2022 We maintain a diverse, low risk profile of interest earning assets Multifamily & Commercial Real Estate $1.2 B • No fossil fuel exposure • $239mm of government guaranteed loans • $367mm residential solar loans with strong credit profiles • Predominantly NYC properties with low LTV: MF = 54%, CRE = 51% • $1,055mm agency securities • $1,789mm of non-agency securities • $742mm of PACE securities with low LTV • All non-agency MBS/ABS securities are top of the capital structure • 99% first lien mortgages • Low LTV = 62% • 82%/18% originated to purchased portfolio $7.7B as of 2Q22 Securities $3.5B Cash, Resell Agreements, and Other $0.6B Residential $1.2B Multifa ily & Commercial Real Estate $1.2B C&I, Consumer and Other $1.2B

• In May, $277.3 million AFS securities were transferred into our Non-Pace HTM securities portfolio to reduce potential mark to market volatility • HTM securities, excluding PACE assessments represent 23% of the total investment portfolio • 100% of PACE portfolio, and 41% of Non-Pace HTM securities is mission-aligned Held-to-Maturity Securities 9 HELD-TO-MATURITY SECURITIES ($ in millions) 2Q22 HIGHLIGHTS $625 $725 $844 $946 $1,376 $546 $627 $627 $724 $742 $79 $98 $216 $223 $634 3.96% 4.05% 4.08% 4.21% 4.28% 1.80% 2.13% 1.69% 2.01% 2.59% PACE (HTM) Non Pace HTM PACE (HTM) Yield Non-Pace HTM Yield 2Q21 3Q21 4Q21 1Q22 2Q22

Investment Securities 10 SECURITIES – BOOK VALUE(1) ($ millions) (1) Securities book value excludes unrealized Available for Sale (AFS) gain / loss on sale (2) MBS/ABS does not include PACE assessments • Investment Securities totaled $3.6 billion book value for 2Q22 • Securities increased $113.8 million in 2Q22 compared to 1Q22 with continued mix shift toward non-agency partially from PACE assessment growth ◦ Non-agency securities in 2Q22 include $742.1 million of PACE assessments, which are non-rated • 86.8% of all non-agency MBS/ABS securities are AAA rated and 99.6% are A rated or higher(2); all CLO’s are AAA-rated • As of 2Q22 average subordination for the C&I CLOs was 42.4% • 38% of the total securities portfolio (or 48% of the securities portfolio excluding PACE) has a floating rate of interest 2Q22 HIGHLIGHTS $2,425 $2,662 $2,946 $3,420 $3,586 $1,031 $1,164 $1,390 $1,702 $1,789 $546 $627 $627 $724 $742 $848 $871 $929 $994 $1,055 3.96% 4.05% 4.08% 4.21% 4.28% 1.66% 1.60% 1.57% 1.60% 1.81% 1.84% 1.78% 1.78% 1.96% 2.47% Non-Agency PACE Agency PACE Yield Agency Yield Non-Agency Yield 2Q21 3Q21 4Q21 1Q22 2Q22

• Total loans increased $178.2 million, or 5.1%, compared to 1Q22 due to new loan originations in our residential real estate and solar portfolios, partially offset by commercial loan payoffs • 2Q22 yield of 3.86%; an increase of 1 bps compared to 1Q22 • The total balance of mission-aligned loans in our commercial portfolio was $1.7 billion, or 72.3% of the total commercial balance • 36.5% of all residential loans purchased or originated in Q2 were CRA loans3, compared to 19.0% in Q1 Loans 11 TOTAL LOANS (1)(2) ($ in millions) 2Q22 HIGHLIGHTS $3,138 $3,087 $3,277 $3,435 $3,609 3.82% 3.84% 4.01% 3.85% 3.86% Total Loans, net Loan Yield 2Q21 3Q21 4Q21 1Q22 2Q22 (1) Held for Sale loans excluded (2) Adjusted for $1.0 million paid interest on reinstated loan, 4Q21 yield was 3.89% (3) CRA loans are defined as loans issued in a low to middle income area, or to a low to middle income borrower MISSION ALIGNED COMMERCIAL LOANS ($ in millions) $861 $334 $743 $426 $741 $98 $484 $381 $120 $236 $260 $45 Mission Aligned Loans Non-Impact Loans Multifamily CRE C&I Consumer/Other

Net Interest Income and Margin 12 NET INTEREST INCOME & MARGIN ($ millions) • Net interest income was $56.5 million, compared to $48.4 million in 1Q22 • 2Q22 NIM at 3.03%; an increase of 27 bps compared to 1Q22 • NIM was negatively impacted by approximately 8 bps due to cash in excess of $100 million on the balance sheet • Loan prepayment penalties favorably impacted NIM by 2 bps in 2Q22, compared to 3 bps in 1Q22 2Q22 HIGHLIGHTS $42.0 $43.4 $47.1 $48.4 $56.5 2.75% 2.70% 2.77% 2.76% 3.03% Net Interest Income Net Interest Margin 2Q21 3Q21 4Q21 1Q22 2Q22

Non-Interest Expense and Efficiency 13 NON-INTEREST EXPENSE ($ millions) • Efficiency ratio of 53.9% for 2Q22 • Core efficiency ratio excluding the tax credit or accelerated depreciation impact of our solar tax equity investments of 52.2% for 2Q22(1) • Non-interest expense for 2Q22 was $34.3 million • Non-interest expense for 2Q22 was $0.1 million lower compared to 1Q22 2Q22 HIGHLIGHTS (1) See non-GAAP disclosures on pages 22-23 (2) Ex-solar is defined as excluding the tax credit or accelerated depreciation impact of our solar tax equity investments $31.4 $32.6 $34.0 $34.0 $34.0 $31.4 $33.0 $35.0 $34.4 $34.3 64.4% 64.7% 62.8% 61.1% 52.2% 66.3% 66.0% 58.9% 61.7% 53.9% Core NIX NIX Core Eff Ratio ex-solar(2) Eff Ratio 2Q21 3Q21 4Q21 1Q22 2Q22

Non-Interest Income 14 CORE NON-INTEREST INCOME ex-solar (1) ($ millions) • Our trust business held $38.9 billion in assets under custody and $12.9 billion in assets under management, compared to $39.7 billion and $15.1 billion, respectively, in the preceding quarter; this decline was primarily driven by a decrease in fair value due to market volatility • Trust fee income remained flat quarter over quarter, primarily due to steady recordkeeping fees and subadvisory income • Other income is up $1.1 million, primarily driven by an increase in income generated from bank-owned life insurance due to a one-time beneficiary event, as well as a gain on the sale of nonperforming commercial loans 2Q22 HIGHLIGHTS (1) Ex-solar is defined as excluding the tax credit or accelerated depreciation impact of our solar tax equity investments $6.8 $7.0 $7.2 $7.2 $8.7 $1.2 $1.2 $1.9 $1.3 $2.4 $3.3 $3.4 $2.9 $3.5 $3.5 $2.3 $2.5 $2.4 $2.4 $2.8 Retail banking Trust fee income Core other income ex-solar (1) 2Q21 3Q21 4Q21 1Q22 2Q22

Allowance for Loan Losses 15 ALLOWANCE FOR LOAN LOSSES / TOTAL LOANS ALLOWANCE FOR LOAN LOSSES (ALLL) CHANGE DURING 2Q22 ($ millions) • Allowance for loan losses totals $39.5 million in 2Q22, or $2.0 million higher compared to 1Q22 primarily due to higher loan balances and specific reserves, offset by improved credit quality 2Q22 HIGHLIGHTS 1.20% 1.15% 1.08% 1.08% 1.08% 2Q21 3Q21 4Q21 1Q22 2Q22 Allowance Waterfall 37.5 1.6 1.5 (1.1) — 39.5 03/31/22 Loan Balances Specific Reserves Credit Quality Qualitative Factors 6/30/22

Credit Quality 16 NPA / TOTAL ASSETS NCO / AVERAGE LOANS(1) (Quarter trend) 2Q22 HIGHLIGHTS • Nonperforming assets were $65.3 million as of 2Q22, compared to $61.1 million in 1Q22 • Net charge-offs of 0.11% in 2Q22 was 3 bps higher than 1Q22 due to increased charge-off activity related to our focus on reducing our nonperforming assets • Criticized and classified loans improved by $43.5 million, or 24%; Pass rated loans are 96% of loan portfolio 1. Annualized CRITICIZED AND CLASSIFIED LOANS ($ millions) 1.08% 0.99% 0.77% 0.80% 0.82% 2Q21 3Q21 4Q21 1Q22 2Q22 0.04% (0.02)% 0.44% 0.08% 0.11% 2Q21 3Q21 4Q21 1Q22 2Q22 $336 $311 $231 $179 $136 2Q21 3Q21 4Q21 1Q22 2Q22

Returns 17 (1) Refer to Reconciliation of Non-GAAP Financial Measures on slides 22-23 for further details (2) ROAE was 7.6%, 10.3%, 11.2%, 10.3% and 15.2% for 2Q21, 3Q21, 4Q21, 1Q22 and 2Q22, respectively (3) ROATCE was 7.9%, 10.6%, 11.6%, 10.6% and 15.7% for 2Q21, 3Q21, 4Q21, 1Q22 and 2Q22, respectively (4) Ex-solar is defined as excluding the tax credit or accelerated depreciation impact of our solar tax equity investments Core ROAE & Core ROATCE ex-solar (1)(2)(3)(4) 8.4% 10.7% 8.9% 10.4% 16.2% 8.7% 11.1% 9.2% 10.7% 16.8% Core ROAE ex-solar Core ROATCE ex-solar 2Q21 3Q21 4Q21 1Q22 2Q22 Core ROAE and Core ROATCE ex-solar for Q2 2022 would be 14.8% and 15.2%, respectively assuming no change in OCI from Q1 2022

Capital 18 TIER 1 LEVERAGE RATIO COMMON EQUITY TIER 1 RATIO • Regulatory capital ratios remained strong ◦ Tier 1 leverage ratio of 7.08% as of 2Q22 ◦ Excluding the excess liquidity(1), tier 1 leverage ratio would be 7.28% ◦ Bank tier 1 leverage ratio of 7.84% as of Q2 2022. ◦ Common Equity Tier 1 Capital of 11.76% • Tier 1 leverage ratio was 26 bps lower than the prior quarter, primarily driven by a decrease in capital due to our repurchase activity, as well as an increase in average assets • CET1 ratio of approximately 12% reflects conservative investment practices 2Q22 HIGHLIGHTS 7.93% 7.85% 7.62% 7.34% 7.08% 8.49% 8.55% 8.17% 7.69% 7.28% Tier 1 Leverage Leverage Ratio ex-Excess Liquidity 2Q21 3Q21 4Q21 1Q22 2Q22 13.63% 13.98% 12.98% 12.36% 11.76% 2Q21 3Q21 4Q21 1Q22 2Q22 (1) Excess liquidity is defined as cash in excess of $100.0 million

Tangible Book Value 510 20 (2) (9) 1 (37) 481 16.45 17.09 17.01 16.72 16.96 16.91 15.69 15.69 03/31/22 Earnings Dividends @ $.08/ share Buybacks - APIC Buybacks - Share count Other(1) AFS Mark 6/30/22 TANGIBLE COMMON EQUITY & TANGIBLE BOOK VALUE ($ millions) 2Q22 SUMMARY • TBV decline primarily driven by a $37.4 million decline from the previous quarter in the tax effected AFS mark-to-market adjustment ◦ TBV decline of 4.6% reflective of increases in long-term interest rates and widening of pricing spreads ◦ AFS mark adjustment considered temporary risk mitigated by our liquidity position • Share repurchases had a small dilutive impact to TBV per share as capital usage was partially offset by outstanding share impact • Tangible Common Equity Ratio was 6.3% • Dividend Payout Ratio was 12.6% 19 (1) Other includes the effect of stock issuance

2022 Guidance 20 2022 FINANCIAL OUTLOOK - Higher End of Ranges • Core pre-tax pre-provision earnings(1) from $75 - $85 million to: ◦ $97 - $105 million - includes effect of rate hikes through June ◦ $110 - $120 million - includes effect of July hike and forward rate curve through 2022 • Net Interest Income from $184 - $192 million to: ◦ $205 - $215 million - includes effect of rate hikes through June ◦ $220 - $230 million - includes effect of July hike and forward rate curve through 2022 • Approximately 5-7% balance sheet growth, driven by loan growth and managing cash and short-term securities mix 2022 INITIATIVES • Invest in lending strategy via personnel, invest in key talent across critical roles • Drive ESG ResponsiFunds and overall profitability of Trust business (1) Excluding the tax credit or accelerated depreciation impact of our solar tax equity investments and any future non-core items

Appendix

Reconciliation of Non-GAAP Financials 22 As of and for the As of and for the Three Months Ended Six Months Ended (in thousands) June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Core operating revenue Net Interest income (GAAP) $ 56,498 $ 48,368 $ 41,991 $ 104,866 $ 83,836 Non-interest income 7,246 7,422 5,327 14,668 9,327 Less: Securities (gain) loss 582 (162) (321) 420 (339) Core operating revenue (non-GAAP) 64,326 55,628 46,997 119,954 92,824 Add: Tax (credits) depreciation on solar investments 862 (64) 1,760 798 5,597 Core operating revenue excluding solar tax impact (non-GAAP) $ 65,188 $ 55,564 $ 48,757 $ 120,752 $ 98,421 Core non-interest expense Non-interest expense (GAAP) $ 34,346 $ 34,397 $ 31,395 $ 68,743 $ 64,189 Less: Severance (1) (34) (52) — (86) (1,090) Less: ABOC (282) (371) — (653) — Core non-interest expense (non-GAAP) $ 34,030 $ 33,974 $ 31,395 $ 68,004 $ 63,099 Core net income Net Income (GAAP) $ 19,613 $ 14,165 $ 10,408 $ 33,778 $ 22,598 Less: Securities (gain) loss 582 (162) (321) 420 (339) Add: Severance (1) 34 52 — 86 1,090 Add: ABOC 282 371 — 653 — Less: Tax on notable items (233) (67) 86 (300) (196) Core net income (non-GAAP) 20,278 14,359 10,173 34,637 23,153 Add: Tax (credits) depreciation on solar investments 862 (64) 1,760 798 5,597 Add: Tax effect of solar income (224) 17 (474) (207) (1,457) Core net income excluding solar tax impact (non-GAAP) $ 20,916 $ 14,312 $ 11,459 $ 35,228 $ 27,293 (1) Salary and COBRA expense reimbursement expense for positions eliminated

Reconciliation of Non-GAAP Financials 23 As of and for the As of and for the Three Months Ended Six Months Ended (in thousands) June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Tangible common equity Stockholders' equity (GAAP) $ 498,041 $ 526,762 $ 548,211 $ 498,041 $ 548,211 Less: Minority interest (133) (133) (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) (12,936) (12,936) Less: Core deposit intangible (3,628) (3,890) (4,755) (3,628) (4,755) Tangible common equity (non-GAAP) $ 481,344 $ 509,803 $ 530,387 $ 481,344 $ 530,387 Average tangible common equity Average stockholders' equity (GAAP) $ 517,430 $ 560,391 $ 547,766 $ 538,792 $ 545,163 Less: Minority interest (133) (133) (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) (12,936) (12,936) Less: Core deposit intangible (3,755) (4,017) (4,903) (3,886) (5,052) Average tangible common equity (non-GAAP) $ 500,606 $ 543,305 $ 529,794 $ 521,837 $ 527,042 Core return on average assets Core net income (non-GAAP) $ 20,278 $ 14,359 $ 10,173 $ 34,637 $ 23,153 Denominator: Total average assets 7,760,294 7,392,773 6,394,768 7,577,547 6,313,807 Core return on average assets (non-GAAP) 1.05% 0.79% 0.64% 0.92% 0.74% Core return on average assets excluding solar tax impact (non-GAAP) 1.08% 0.79% 0.72% 0.94% 0.87% Core return on average tangible common equity Core net income (non-GAAP) $ 20,278 $ 14,359 $ 10,173 $ 34,637 $ 23,153 Denominator: Average tangible common equity 500,606 543,305 529,794 521,837 527,042 Core return on average tangible common equity (non-GAAP) 16.25% 10.72% 7.70% 13.38% 8.86% Core return on average tangible common equity excluding solar tax impact (non-GAAP) 16.76% 10.68% 8.68% 13.61% 10.44% Core efficiency ratio Numerator: Core non-interest expense (non-GAAP) $ 34,030 $ 33,974 $ 31,395 $ 68,004 $ 63,099 Core operating revenue (non-GAAP) 64,326 55,628 46,997 119,954 92,824 Core efficiency ratio (non-GAAP) 52.90% 61.07% 66.80% 56.69% 67.98% Core efficiency ratio excluding solar tax impact (non-GAAP) 52.20% 61.14% 64.39% 56.32% 64.11%

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