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amal-20221027

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): October 27, 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 October 27, 2022, Amalgamated Financial Corp. (“Company”) issued a press release announcing the Company's 2022 financial results for the third quarter ended September 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 October 27, 2022, the Company will hold an earnings conference call and webcast at 11:00 a.m. (Eastern Time) to discuss financial results for the third quarter ended September 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 October 2 7, 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: October 27, 2022

Document

Amalgamated Financial Corp. Reports Record Third Quarter 2022 Financial Results

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

Third Quarter 2022 Highlights

•Record earnings of $22.9 million, or $0.74 per diluted share, compared to $19.6 million, or $0.63 per diluted share, on a linked quarter basis.

•Excluding the impact of solar tax equity investments, core net income was $24.8 million, or $0.80 per diluted share, as compared to $20.9 million, or $0.67 per diluted share, on a linked quarter basis.

•Average deposits increased by $191.1 million, or 2.7%, to $7.3 billion, on a linked quarter basis.

•Industry leading average cost of deposits of 14 basis points, where non-interest bearing deposits comprised 54% of total deposits.

•Loans receivable, net of allowance and deferred fees and costs, increased $220.2 million, or 6.1%, to $3.8 billion, on a linked quarter basis

•PACE assessments grew $114.6 million to $856.7 million on a linked quarter basis, comprised of an $8.7 million increase in commercial and $105.9 million increase in residential.

•Net interest income grew $11.1 million, or 19.6%, to $67.6 million compared to $56.5 million, while net interest margin grew by 47 basis points to 3.50%, compared to 3.03%, each on a linked quarter basis.

•Nonaccrual loans improved to $19.8 million or 0.51% of total loans, compared to $24.4 million or 0.67% of total loans on a linked quarter basis.

•Credit quality improved with criticized loans declining $22.8 million, or 16.8%, to $113.0 million, on a linked quarter basis.

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

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

Third Quarter Earnings

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

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

[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.

Presentation excluding the temporary effect of the tax credits and accelerated depreciation of solar tax equity investments reduces the financial statement volatility associated with these investments.

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

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

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

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

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

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

Balance Sheet Quarterly Summary

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

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

Deposits at September 30, 2022 were $7.2 billion, a decrease of $130.9 million, or 1.8%, as compared to $7.3 billion as of June 30, 2022. Total deposits year to date have increased $804.0 million, or 12.6%. Deposits held by politically active

customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $1.2 billion as of September 30, 2022, a decrease of $123.7 million on a linked quarter basis. Accelerated runoff of political deposits is anticipated in the fourth quarter related to the conclusion of the congressional elections.

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

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

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

Capital Quarterly Summary

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

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

Conference Call

As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its third quarter 2022 results today, October 27th, 2022 at 11:00am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. Third Quarter 2022 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13731490. The telephonic replay will be available until November 3, 2022.

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

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

About Amalgamated Financial Corp.

Amalgamated Financial Corp. is a Delaware public benefit corporation and a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank. Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country's oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. As of September 30, 2022, our total assets were $7.9 billion, total net loans were $3.8 billion, and total deposits were $7.2 billion. Additionally, as of September 30, 2022, our trust business held $37.6 billion in assets under custody and $12.5 billion in assets under management.

Non-GAAP Financial Measures

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

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

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

Terminology

Certain terms used in this release are defined as follows:

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

“Core operating revenue excluding solar tax impact” is defined as total net interest income plus non-interest income excluding gains and losses on sales of securities, gains on the sale of owned property, and tax credits and depreciation on

solar equity investments. We believe the most directly comparable GAAP financial measure is the total of net interest income and non-interest income.

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

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

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

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

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

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

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

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

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

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

Forward-Looking Statements

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

Investor Contact:

Jamie Lillis

Solebury Trout

shareholderrelations@amalgamatedbank.com

800-895-4172

Consolidated Statements of Income (unaudited)


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
($ in thousands)	2022		2022		2021		2022		2021
INTEREST AND DIVIDEND INCOME
Loans	$	38,264	$	33,766	$	29,915	$	103,157	$	91,180
Securities	31,580		24,352		14,655		75,087		40,008

Interest-bearing deposits in banks	971		551		230		1,701		451
Total interest and dividend income	70,815		58,669		44,800		179,945		131,639
INTEREST EXPENSE
Deposits	2,491		1,481		1,413		5,374		4,416
Borrowed funds	696		690		—		2,077		—
Total interest expense	3,187		2,171		1,413		7,451		4,416
NET INTEREST INCOME	67,628		56,498		43,387		172,494		127,223
Provision for (recovery of) loan losses	5,363		2,912		(2,276)		10,568		(3,855)
Net interest income after provision for loan losses	62,265		53,586		45,663		161,926		131,078
NON-INTEREST INCOME
Trust Department fees	3,872		3,479		3,353		10,842		10,471
Service charges on deposit accounts	2,735		2,826		2,466		8,008		6,941
Bank-owned life insurance	785		1,283		539		2,882		1,858
Gain (loss) on sale of securities	(1,844)		(582)		413		(2,264)		755
Gain (loss) on sale of loans, net	(367)		492		280		(32)		1,706
Gain (loss) on other real estate owned, net	—		—		—		—		(407)
Equity method investments	(1,151)		(638)		(483)		(1,357)		(5,720)
Other	973		386		134		1,592		424
Total non-interest income	5,003		7,246		6,702		19,671		16,028
NON-INTEREST EXPENSE
Compensation and employee benefits	19,527		18,046		17,482		55,242		52,485
Occupancy and depreciation	3,481		3,457		3,440		10,378		10,293
Professional fees	3,173		2,745		2,348		8,733		9,219

Data processing	4,149		4,327		4,521		13,660		10,848
Office maintenance and depreciation	807		784		887		2,316		2,362
Amortization of intangible assets	262		261		301		785		905

Advertising and promotion	795		761		1,023		2,410		2,248

Other	4,064		3,965		3,032		11,477		8,863
Total non-interest expense	36,258		34,346		33,034		105,001		97,223
Income before income taxes	31,010		26,486		19,331		76,596		49,883
Income tax expense (benefit)	8,066		6,873		4,915		19,874		12,870
Net income	$	22,944	$	19,613	$	14,416	$	56,722	$	37,013


Earnings per common share - basic	$	0.75	$	0.64	$	0.46	$	1.84	$	1.19
Earnings per common share - diluted	$	0.74	$	0.63	$	0.46	$	1.82	$	1.17

Consolidated Statements of Financial Condition


($ in thousands)	September 30, 2022		December 31, 2021
Assets	(unaudited)
Cash and due from banks	$	3,404	$	8,622
Interest-bearing deposits in banks	62,819		321,863
Total cash and cash equivalents	66,223		330,485
Securities:
Available for sale, at fair value (amortized cost of $2,087,187 and $2,103,049, respectively)	1,957,486		2,113,410
Held-to-maturity (fair value of $1,369,383 and $849,704, respectively)	1,492,423		843,569
Loans held for sale	17,916		3,279
Loans receivable, net of deferred loan origination costs (fees)	3,871,290		3,312,224
Allowance for loan losses	(42,122)		(35,866)
Loans receivable, net	3,829,168		3,276,358

Resell agreements	192,834		229,018
Accrued interest and dividends receivable	34,767		28,820
Premises and equipment, net	10,539		11,735
Bank-owned life insurance	105,915		107,266
Right-of-use lease asset	29,991		33,115
Deferred tax asset	64,046		26,719
Goodwill	12,936		12,936

Other intangible assets	3,366		4,151
Equity investments	7,683		6,856
Other assets	42,924		50,159
Total assets	$	7,868,217	$	7,077,876
Liabilities
Deposits	$	7,160,307	$	6,356,255
Subordinated debt	77,679		83,831
Borrowed funds	75,000		—
Operating leases	43,229		48,160
Other liabilities	24,264		25,755
Total liabilities	7,380,479		6,514,001


Stockholders’ equity
Common stock, par value $.01 per share (70,000,000 shares authorized; 30,672,303 and 31,130,143 shares issued and outstanding, respectively)	307		311
Additional paid-in capital	286,431		297,975
Retained earnings	308,743		260,047



Accumulated other comprehensive income (loss), net of income taxes	(107,876)		5,409
Total Amalgamated Financial Corp. stockholders' equity	487,605		563,742
Noncontrolling interests	133		133
Total stockholders' equity	487,738		563,875
Total liabilities and stockholders’ equity	$	7,868,217	$	7,077,876

Select Financial Data


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

Select Financial Data


	As of and for the						As of and for the
	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
	2022		2022		2021		2022		2021
Selected Performance Metrics:
Return on average assets	1.15	%	1.01	%	0.86	%	0.98	%	0.77	%
Core return on average assets (non-GAAP)	1.19	%	1.05	%	0.86	%	1.02	%	0.78	%
Core return on average assets excluding solar tax impact (non-GAAP)	1.24	%	1.08	%	0.90	%	1.04	%	0.88	%
Return on average equity	17.79	%	15.20	%	10.29	%	14.32	%	9.02	%
Core return on average tangible common equity (non-GAAP)	19.11	%	16.25	%	10.62	%	15.25	%	9.46	%
Core return on average tangible common equity excluding solar tax impact (non-GAAP)	19.88	%	16.76	%	11.05	%	15.65	%	10.65	%
Average equity to average assets	6.44	%	6.67	%	8.38	%	6.88	%	8.55	%
Tangible common equity to tangible assets	6.00	%	6.07	%	7.88	%	6.00	%	7.88	%
Loan yield	4.11	%	3.86	%	3.84	%	3.95	%	3.83	%
Securities yield	3.35	%	2.66	%	2.19	%	2.82	%	2.17	%
Deposit cost	0.14	%	0.08	%	0.09	%	0.10	%	0.10	%
Net interest margin	3.50	%	3.03	%	2.70	%	3.11	%	2.77	%
Efficiency ratio (1)	49.92	%	53.88	%	65.95	%	54.64	%	67.87	%
Core efficiency ratio (non-GAAP)	49.09	%	52.90	%	65.71	%	53.80	%	67.19	%
Core efficiency ratio excluding solar tax impact (non-GAAP)	48.24	%	52.20	%	64.67	%	53.22	%	64.30	%

Asset Quality Ratios:
Nonaccrual loans to total loans	0.51	%	0.67	%	1.46	%	0.51	%	1.46	%
Nonperforming assets to total assets	0.69	%	0.82	%	0.99	%	0.69	%	0.99	%
Allowance for loan losses to nonaccrual loans	212.51	%	161.81	%	78.83	%	212.51	%	78.83	%
Allowance for loan losses to total loans	1.09	%	1.08	%	1.15	%	1.09	%	1.15	%
Annualized net charge-offs (recoveries) to average loans	0.29	%	0.11	%	-0.02	%	0.16	%	0.08	%

Capital Ratios:
Tier 1 leverage capital ratio	7.16	%	7.08	%	7.85	%	7.16	%	7.85	%
Tier 1 risk-based capital ratio	11.91	%	11.75	%	13.98	%	11.91	%	13.98	%
Total risk-based capital ratio	14.43	%	14.41	%	14.99	%	14.43	%	14.99	%
Common equity tier 1 capital ratio	11.91	%	11.75	%	13.98	%	11.91	%	13.98	%

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

Loan and Held-to-Maturity Securities Portfolio Composition


(In thousands)	At September 30, 2022			At June 30, 2022				At September 30, 2021
	Amount		% of total loans	Amount		% of total loans		Amount		% of total loans
Commercial portfolio:
Commercial and industrial	$	805,087	20.8%	$	743,403	20.4	%	$	628,388	20.2%
Multifamily	884,790		22.9%	853,514		23.4	%	826,143		26.5%
Commercial real estate	338,002		8.7%	340,987		9.4	%	346,996		11.1%
Construction and land development	38,946		1.0%	43,212		1.2	%	34,863		1.1%
Total commercial portfolio	2,066,825		53.4%	1,981,116		54.4	%	1,836,390		58.9%

Retail portfolio:
Residential real estate lending	1,332,010		34.5%	1,236,088		33.9	%	1,032,947		33.1%

Consumer and other	467,793		12.1%	426,394		11.7	%	249,050		8.0%
Total retail	1,799,803		46.6%	1,662,482		45.6	%	1,281,997		41.1%
Total loans held for investment	3,866,628		100.0%	3,643,598		100.0	%	3,118,387		100.0%

Net deferred loan origination costs (fees)	4,662			4,806				4,942
Allowance for loan losses	(42,122)			(39,477)				(35,863)
Total loans, net	$	3,829,168		$	3,608,927			$	3,087,466

Held-to-maturity securities portfolio:
PACE assessments	$	856,701	57.4%	$	742,146	53.9%		$	627,195	86.5%
Other securities	635,722		42.6%	633,520		46.1%		97,881		13.5%
Total held-to-maturity securities	$	1,492,423	100.0%	$	1,375,666	100.0%		$	725,076	100.0%

Net Interest Income Analysis


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

Interest earning assets:
Interest-bearing deposits in banks	$	222,071		$	971	1.73	%	$	305,134		$	551	0.72	%	$	632,526		$	230	0.14	%
Securities	3,522,863			29,735		3.35	%	3,443,987			23,308		2.71	%	2,545,703			14,192		2.21	%
Resell agreements	232,956			1,845		3.14	%	231,468			1,044		1.81	%	114,100			463		1.61	%

Total loans, net (1)(2)	3,693,688			38,264		4.11	%	3,504,223			33,766		3.86	%	3,087,744			29,915		3.84	%
Total interest earning assets	7,671,578			70,815		3.66	%	7,484,812			58,669		3.14	%	6,380,073			44,800		2.79	%
Non-interest earning assets:
Cash and due from banks	4,783							9,296							8,464
Other assets	265,736							266,186							243,969
Total assets	$	7,942,097						$	7,760,294						$	6,632,506

Interest bearing liabilities:
Savings, NOW and money market deposits	$	3,031,402		$	2,329	0.30	%	$	3,030,788		$	1,332	0.18	%	$	2,641,719		$	1,173	0.18	%
Time deposits	184,476			162		0.35	%	192,181			149		0.31	%	241,009			240		0.40	%
Total deposits	3,215,878			2,491		0.31	%	3,222,969			1,481		0.18	%	2,882,728			1,413		0.19	%


Other borrowings	85,323			696		3.24	%	83,886			690		3.30	%	—			—		0.00	%
Total interest bearing liabilities	3,301,201			3,187		0.38	%	3,306,855			2,171		0.26	%	2,882,728			1,413		0.19	%
Non-interest bearing liabilities:
Demand and transaction deposits	4,053,953							3,855,735							3,077,231
Other liabilities	75,143							80,274							116,790
Total liabilities	7,430,297							7,242,864							6,076,749
Stockholders' equity	511,800							517,430							555,757
Total liabilities and stockholders' equity	$	7,942,097						$	7,760,294						$	6,632,506

Net interest income / interest rate spread				$	67,628	3.28	%				$	56,498	2.88	%				$	43,387	2.60	%
Net interest earning assets / net interest margin	$	4,370,377				3.50	%	$	4,177,957				3.03	%	$	3,497,345				2.70	%

Total Cost of Deposits						0.14	%						0.08	%						0.09	%

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

(2) Includes prepayment penalty interest income in 3Q2022, 2Q2022, and 3Q2021 of $800, $379, and $169, respectively (in thousands)

Net Interest Income Analysis


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

Interest earning assets:
Interest-bearing deposits in banks	$	316,288		$	1,701	0.72	%	$	508,421		$	451	0.12	%
Securities	3,387,707			71,477		2.82	%	2,321,979			38,643		2.23	%
Resell agreements	227,932			3,610		2.12	%	138,967			1,365		1.31	%

Total loans, net (1)(2)	3,493,405			103,157		3.95	%	3,180,890			91,180		3.83	%
Total interest earning assets	7,425,332			179,945		3.24	%	6,150,257			131,639		2.86	%
Non-interest earning assets:
Cash and due from banks	7,752							7,780
Other assets	267,315							263,170
Total assets	$	7,700,399						$	6,421,207

Interest bearing liabilities:
Savings, NOW and money market deposits	$	2,986,588		$	4,908	0.22	%	$	2,574,463		$	3,568	0.19	%
Time deposits	191,944			466		0.32	%	259,609			848		0.44	%
Total deposits	3,178,532			5,374		0.23	%	2,834,072			4,416		0.21	%


Other borrowings	84,604			2,077		3.28	%	165			—		0.00	%
Total interest bearing liabilities	3,263,136			7,451		0.31	%	2,834,237			4,416		0.21	%
Non-interest bearing liabilities:
Demand and transaction deposits	3,821,571							2,925,516
Other liabilities	85,996							112,721
Total liabilities	7,170,703							5,872,474
Stockholders' equity	529,696							548,733
Total liabilities and stockholders' equity	$	7,700,399						$	6,421,207

Net interest income / interest rate spread				$	172,494	2.93	%				$	127,223	2.65	%
Net interest earning assets / net interest margin	$	4,162,196				3.11	%	$	3,316,020				2.77	%

Total Cost of Deposits						0.10	%						0.10	%

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

(2) Includes prepayment penalty interest income in September YTD 2022 and September YTD 2021 of $1.6 million and $1.3 million, respectively

Deposit Portfolio Composition


(In thousands)	September 30, 2022		June 30, 2022		September 30, 2021

Non-interest bearing demand deposit accounts	$	3,839,155	$	3,965,907	$	3,189,155
NOW accounts	204,473		208,795		206,610
Money market deposit accounts	2,549,024		2,540,657		2,241,914
Savings accounts	384,644		388,185		364,568
Time deposits	183,011		187,623		222,259

Total deposits	$	7,160,307	$	7,291,167	$	6,224,506


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

Non-interest bearing demand deposit accounts	$4,053,953		0.00	%	$3,855,735		0.00	%	$3,077,231		0.00	%
NOW accounts	210,972		0.19	%	211,007		0.09	%	205,417		0.09	%
Money market deposit accounts	2,437,920		0.33	%	2,431,571		0.19	%	2,066,830		0.20	%
Savings accounts	382,510		0.19	%	388,210		0.11	%	369,472		0.10	%
Time deposits	184,476		0.35	%	192,181		0.31	%	241,009		0.40	%

Total deposits	$	7,269,831	0.14	%	$	7,078,704	0.08	%	$	5,959,959	0.09	%

Asset Quality


(In thousands)	September 30, 2022			June 30, 2022			September 30, 2021
Loans 90 days past due and accruing	$	—		$	—		$	—
Nonaccrual loans held for sale	5,858			4,841			—
Troubled debt restructured loans - accruing loans held for sale	10,179			—			—
Nonaccrual loans excluding held for sale loans and restructured loans	7,499			8,109			24,960
Troubled debt restructured loans - nonaccrual	12,322			16,288			20,534
Troubled debt restructured loans - accruing	18,396			35,683			21,958
Other real estate owned	—			307			307
Impaired securities	37			56			64
Total nonperforming assets	$	54,291		$	65,284		$	67,823

Nonaccrual loans:
Commercial and industrial	$	9,356		$	9,550		$	13,709
Multifamily	3,494			3,494			6,079
Commercial real estate	4,914			3,931			4,023
Construction and land development	—			5,053			—
Total commercial portfolio	17,764			22,028			23,811

Residential real estate lending	675			898			20,797


Consumer and other	1,382			1,471			886
Total retail portfolio	2,057			2,369			21,683
Total nonaccrual loans	$	19,821		$	24,397		$	45,494

Nonaccrual loans to total loans	0.51		%	0.67		%	1.46		%
Nonperforming assets to total assets	0.69		%	0.82		%	0.99		%
Allowance for loan losses to nonaccrual loans	212.51		%	161.81		%	78.83		%
Allowance for loan losses to total loans	1.09		%	1.08		%	1.15		%
Annualized net charge-offs (recoveries) to average loans	0.29		%	0.11		%	-0.02		%

Credit Quality


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




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




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

Reconciliation of GAAP to Non-GAAP Financial Measures

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


	As of and for the						As of and for the
	Three Months Ended						Nine Months Ended
(in thousands)	September 30, 2022		June 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Core operating revenue
Net Interest income (GAAP)	$	67,628	$	56,498	$	43,387	$	172,494	$	127,223
Non-interest income	5,003		7,246		6,702		19,671		16,028

Less: Securities (gain) loss	1,844		582		(413)		2,264		(755)
Less: Subdebt repurchase (gain) loss	(617)		—		—		(617)		—
Core operating revenue (non-GAAP)	73,858		64,326		49,676		193,812		142,496
Add: Tax (credits) depreciation on solar investments	1,306		862		796		2,105		6,393
Core operating revenue excluding solar tax impact (non-GAAP)	75,164		65,188		50,472		195,917		148,889

Core non-interest expense
Non-interest expense (GAAP)	$	36,258	$	34,346	$	33,034	$	105,001	$	97,224






Less: Other one-time expenses(1)	—		(316)		(392)		(738)		(1,482)

Core non-interest expense (non-GAAP)	36,258		34,030		32,642		104,263		95,742

Core net income
Net Income (GAAP)	$	22,944	$	19,613	$	14,416	$	56,722	$	37,013

Less: Securities (gain) loss	1,844		582		(413)		2,264		(755)




Less: Subdebt repurchase (gain) loss	(617)		—		—		(617)		—


Add: Other one-time expenses	—		316		392		738		1,482
Less: Tax on notable items	(319)		(233)		5		(619)		(188)
Core net income (non-GAAP)	23,852		20,278		14,400		58,488		37,552
Add: Tax (credits) depreciation on solar investments	1,306		862		796		2,105		6,393
Add: Tax effect of solar income	(340)		(224)		(202)		(546)		(1,649)
Core net income excluding solar tax impact (non-GAAP)	24,818		20,916		14,994		60,047		42,296

Tangible common equity
Stockholders' equity (GAAP)	$	487,738	$	498,041	$	556,390	$	487,738	$	556,390
Less: Minority interest	(133)		(133)		(133)		(133)		(133)
Less: Goodwill	(12,936)		(12,936)		(12,936)		(12,936)		(12,936)
Less: Core deposit intangible	(3,366)		(3,628)		(4,453)		(3,366)		(4,453)
Tangible common equity (non-GAAP)	471,303		481,344		538,868		471,303		538,868

Average tangible common equity
Average stockholders' equity (GAAP)	$	511,800	$	517,430	$	555,757	$	529,696	$	548,733
Less: Minority interest	(133)		(133)		(133)		(133)		(133)
Less: Goodwill	(12,936)		(12,936)		(12,936)		(12,936)		(12,936)
Less: Core deposit intangible	(3,494)		(3,755)		(4,602)		(3,754)		(4,900)
Average tangible common equity (non-GAAP)	495,237		500,606		538,086		512,873		530,764

Core return on average assets

Denominator: Total average assets	7,942,097		7,760,294		6,632,506		7,700,399		6,421,208
Core return on average assets (non-GAAP)	1.19%		1.05%		0.86%		1.02%		0.78%
Core return on average assets excluding solar tax impact (non-GAAP)	1.24%		1.08%		0.90%		1.04%		0.88%

Core return on average tangible common equity

Denominator: Average tangible common equity	495,237		500,606		538,086		512,873		530,764
Core return on average tangible common equity (non-GAAP)	19.11%		16.25%		10.62%		15.25%		9.46%
Core return on average tangible common equity excluding solar tax impact (non-GAAP)	19.88%		16.76%		11.05%		15.65%		10.65%

Core efficiency ratio
Numerator: Core non-interest expense (non-GAAP)	$	36,258	$	34,030	$	32,642	$	104,263	$	95,742

Core efficiency ratio (non-GAAP)	49.09%		52.90%		65.71%		53.80%		67.19%
Core efficiency ratio excluding solar tax impact (non-GAAP)	48.24%		52.20%		64.67%		53.22%		64.30%

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

a202209_amalearningsdeck

amalgamatedbank.com Member FDIC Amalgamated Financial Corp. Third Quarter 2022 Earnings Presentation October 27, 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; • continued fluctuation 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; • 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; • 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 Amalgamated Bank of Chicago. 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.

3Q22 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 $22.9 million, or $0.74 per diluted share on a GAAP basis; • Core net income excluding the impact of solar tax equity investments was $24.8 million, or $0.80 per diluted share(1) • Core pre-tax, pre-provision income(2) excluding the impact of solar tax equity investments(1) of $38.9 million compared to $31.2 million in 2Q22 • Core efficiency ratio excluding the impact of solar tax equity investments(1) was 48.24% and 52.20% in 3Q22 and 2Q22, respectively BALANCE SHEET • Average deposits increased $191.1 million, or 2.7%, with non-interest bearing deposits making up 56% • Loans, including net deferred costs increased $220.2 million, or 6.1%, to $3.8 billion, on a linked quarter basis • Net interest margin improved to 3.50% in 3Q22, an increase of 47 basis points from 3.03% in 2Q22 CAPITAL • Capital ratios remained strong with CET1 of 11.91% and Tier 1 Leverage of 7.16% • Tangible book value per share of $15.37 compared to $15.69 as of 2Q22, or 2.0% decline • Tangible book value excluding OCI of $18.88 compared to $18.23 as of 2Q22, or 3.6% increase • Tangible common equity ratio of 6.0% compared to 6.1% as of 2Q22

-$1.8 -$0.8 $5.3 $0.1 -$0.9 -$1.3 -$1.7 -$3.8 $0.2 $0.2 $0.5 $0.3 $0.3 $0.3 $0.3 $1.2 $5.0 Tax credits (accelerated depreciation) on solar investments Steady state solar income 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 FY22 FY23-25 Solar Tax-Equity Investments 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 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 2022 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 $122.5 2018 2019 2020 2021 Sept YTD Trends 6 KEY FINANCIAL TRENDS THROUGH 3Q22 ($ in millions) (1) Compounded Annual Growth Rate (“CAGR”) (2) See solar tax investment slide 5 for components of income exclusions (3) Sept YTD 2022 earnings are annualized (4) GAAP Pre-tax, pre-provision income was $116.5 million annualized in 2022, $70.4 million in 2021, and $86.7 in 2020, the only years impacted by our solar investments 10.6% CAGR(1) 16.0% CAGR(1) 25.3% CAGR(1) NPA / Total Assets Loans + PACE $4,105 $4,641 $5,339 $6,356 $7,160 2018 2019 2020 2021 3Q22 1.27% 1.25% 1.38% 0.77% 0.69% 2018 2019 2020 2021 3Q22 $3,211 $3,703 $3,868 $3,904 $4,686 $3,211 $3,439 $3,447 $3,276 $3,829$264 $421 $627 $857 2018 2019 2020 2021 3Q22 >> 4.8% CAGR(1) (Loans) Core Pre-Tax Pre-Provision Earnings(2)(3)(4) excluding the impact of solar tax equity investments

Deposit Portfolio 7 3Q22 HIGHLIGHTS • Total average deposits increased $191.1 million • Total ending deposits decreased $130.9 million compared to 2Q22 primarily related to timing of our pension and benefit fund clients normal payroll withdrawals as well as the first leg of political deposit runoff as the congressional election in early November. ◦ Political deposit runoff was $123.7 million ◦ Political deposits comprised 16.2% of the total deposit portfolio ◦ Key highlights of the non-political deposit activity are: ▪ $38.1 million of growth came from new relationships to the bank this quarter • Total cost of funds of 14 basis points, compared to 8 basis points in Q2; interest bearing deposit cost was 31 basis points in Q3 and 18 basis points in Q2 • Non-interest bearing deposits represented 54% of ending deposits in both 3Q22 and 2Q22 TOTAL DEPOSITS ($ in billions) $6.2 $6.4 $7.0 $7.3 $7.2 $5.2 $5.4 $5.9 $6.0 $6.0 $1.0 $1.0 $1.1 $1.3 $1.2 Political Other Deposits 3Q21 4Q21 1Q22 2Q22 3Q22

Interest Earning Assets 8 INTEREST EARNING ASSETS OF $7.6B AS OF SEPTEMBER 30, 2022 We maintain a diverse, low risk profile of interest earning assets Multifamily & Commercial Real Estate $1.2 B • No fossil fuel exposure • $244mm of government guaranteed loans • $397mm residential solar loans with strong credit profiles • Predominantly NYC properties with low LTV: MF = 54%, CRE = 49% • $980mm agency securities • $1,759mm of non-agency securities • $857mm 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% • 80%/20% originated to purchased portfolio $7.6B as of 3Q22 Securities $3.4B Cash, Resell Agreements, and Other $0.3B Residential $1.3B Multifamily & Commercial Real Estate $1.3B C&I, Consumer and Other $1.3B

• HTM securities, excluding PACE assessments represent 25% of the total investment portfolio • PACE securities saw $115mm new growth during the quarter, due to: ◦ $37mm in PACE PFG purchases ◦ Two additional residential PACE purchases of $62mm and $32mm ◦ One CPACE purchase of $9mm ◦ $25mm in principal payments • 100% of PACE portfolio, and 42% of Non-Pace HTM securities is mission-aligned Held-to-Maturity Securities 9 HELD-TO-MATURITY SECURITIES ($ in millions) 3Q22 HIGHLIGHTS $725 $844 $946 $1,376 $1,492 $627 $627 $724 $742 $857 $98 $216 $223 $634 $636 4.05% 4.08% 4.21% 4.28% 4.27% 2.13% 1.69% 2.01% 2.59% 3.07% PACE (HTM) Non Pace HTM PACE (HTM) Yield Non-Pace HTM Yield 3Q21 4Q21 1Q22 2Q22 3Q22

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 3Q22 • Agency securities made up 27.3% of the total portfolio in 3Q22, down from 29.4% in 2Q22, reflecting PACE assessment growth • PACE assessments are considered non-agency securities, which are non-rated(2) • 85.6% of all non-agency MBS/ABS securities are AAA rated and 99.7% are A rated or higher(2); 98.6% of CLO’s are AAA-rated ◦ As of 3Q22 average subordination for the C&I CLOs was 42.4% • 37% of the total securities portfolio (or 49% of the securities portfolio excluding PACE) has a floating rate of interest 3Q22 HIGHLIGHTS $2,662 $2,946 $3,420 $3,586 $3,596 $1,164 $1,390 $1,702 $1,789 $1,759$627 $627 $724 $742 $857$871 $929 $994 $1,055 $980 4.05% 4.08% 4.21% 4.28% 4.27% 1.60% 1.57% 1.60% 1.81% 2.40% 1.78% 1.78% 1.96% 2.47% 3.30% Non-Agency PACE Agency PACE Yield Agency Yield Non-Agency Yield 3Q21 4Q21 1Q22 2Q22 3Q22

• Total loans increased $220.2 million, or 6.1%, compared to 2Q22 ◦ Residential loan balances grew 8.3% during the quarter ◦ Multifamily/CRE loans grew 1.9% during the quarter ◦ C&I, Consumer, and Other loans grew 9.2% during the quarter • 3Q22 yield of 4.11%; an increase of 25 bps compared to 2Q22 • The total balance of mission-aligned loans in our commercial portfolio was $1.9 billion, or 72.3% of the total commercial balance • 45% of all residential loans purchased or originated in Q3 were CRA loans3, compared to 37% in Q2 Loans 11 TOTAL LOANS (1)(2) ($ in millions) 3Q22 HIGHLIGHTS $3,087 $3,277 $3,435 $3,609 $3,829 3.84% 4.01% 3.85% 3.86% 4.11% Total Loans, net Loan Yield 3Q21 4Q21 1Q22 2Q22 3Q22 (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) $885 $338 $810 $468 $781 $107 $543 $420 $104 $231 $266 $48 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 $67.6 million, compared to $56.5 million in 2Q22 • 3Q22 NIM at 3.50%; an increase of 47 bps compared to 2Q22 • Loan prepayment penalties favorably impacted NIM by 4 bps in 3Q22, compared to 2 bps in 2Q22 3Q22 HIGHLIGHTS $43.4 $47.1 $48.4 $56.5 $67.6 2.70% 2.77% 2.76% 3.03% 3.50% Net Interest Income Net Interest Margin 3Q21 4Q21 1Q22 2Q22 3Q22

Non-Interest Expense and Efficiency 13 NON-INTEREST EXPENSE ($ millions) • Efficiency ratio of 49.9% for 3Q22 • Core efficiency ratio excluding the impact of our solar tax equity investments of 48.2% for 3Q22(1) • Non-interest expense for 3Q22 was $36.3 million • Non-interest expense for 3Q22 was $2.0 million higher compared to 2Q22 3Q22 HIGHLIGHTS (1) See non-GAAP disclosures on pages 22-23 (2) Ex-solar is defined as excluding the impact of our solar tax equity investments $32.6 $34.0 $34.0 $34.0 $36.3 $33.0 $35.0 $34.4 $34.3 $36.3 64.7% 62.8% 61.1% 52.2% 48.2% 66.0% 58.9% 61.7% 53.9% 49.9% Core NIX NIX Core Eff Ratio ex-solar(2) Eff Ratio 3Q21 4Q21 1Q22 2Q22 3Q22

Non-Interest Income 14 CORE NON-INTEREST INCOME ex-solar (1) ($ millions) • Our trust business held $37.6 billion in assets under custody and $12.5 billion in assets under management, compared to $38.9 billion and $12.9 billion, respectively, in the preceding quarter; this decline was primarily driven by a decrease in fair value due to market volatility • Trust fee income increased by $0.4mm quarter over quarter, primarily due to an increase in recordkeeping fees • Other income is down $0.9 million, primarily driven by losses on strategic sales of nonperforming loans that took place throughout the quarter as opposed to gains in the previous quarter 3Q22 HIGHLIGHTS (1) Ex-solar is defined as excluding the impact of our solar tax equity investments $7.0 $7.2 $7.2 $8.7 $8.1 $1.2 $1.9 $1.3 $2.4 $1.5 $3.4 $2.9 $3.5 $3.5 $3.9 $2.5 $2.4 $2.4 $2.8 $2.7 Retail banking Trust fee income Core other income ex-solar (1) 3Q21 4Q21 1Q22 2Q22 3Q22

Allowance for Loan Losses 15 ALLOWANCE FOR LOAN LOSSES / TOTAL LOANS ALLOWANCE FOR LOAN LOSSES (ALLL) CHANGE DURING 3Q22 ($ millions) • Allowance for loan losses totals $42.1 million in 3Q22, or $2.6 million higher compared to 2Q22 primarily due to higher loan balances and qualitative factors, offset by improved specific reserves 3Q22 HIGHLIGHTS 1.15% 1.08% 1.08% 1.08% 1.09% 3Q21 4Q21 1Q22 2Q22 3Q22 Allowance Waterfall 39.5 2.6 (0.9) (0.1) 1.0 42.1 6/30/22 Loan Balances Specific Reserves Credit Quality Qualitative Factors 9/30/22

Credit Quality 16 NPA / TOTAL ASSETS NCO / AVERAGE LOANS(1) (Quarter trend) 3Q22 HIGHLIGHTS • Nonperforming assets were $54.3 million as of 3Q22, compared to $65.3 million in 2Q22 • Net charge-offs of 0.29% in 3Q22 was 18 bps higher than 2Q22 due to activity related to our focus on reducing our nonperforming assets • Criticized and classified loans improved by $22.8 million, or 17%; Pass rated loans are 97% of loan portfolio 1. Annualized CRITICIZED AND CLASSIFIED LOANS ($ millions) 0.99% 0.77% 0.80% 0.82% 0.69% 3Q21 4Q21 1Q22 2Q22 3Q22 (0.02)% 0.44% 0.08% 0.11% 0.29% Solar Residential Commercial 3Q21 4Q21 1Q22 2Q22 3Q22 $311 $231 $179 $136 $113 3Q21 4Q21 1Q22 2Q22 3Q22

Returns 17 (1) Refer to Reconciliation of Non-GAAP Financial Measures on slides 22-23 for further details (2) ROAE was 10.3%, 11.2%, 10.3%, 15.2% and 17.8% for 3Q21, 4Q21, 1Q22, 2Q22 and 3Q22, respectively (3) ROATCE was 10.6%, 11.6%, 10.6%, 15.7% and 18.4% for 3Q21, 4Q21, 1Q22, 2Q22 and 3Q22, respectively (4) Ex-solar is defined as excluding the impact of our solar tax equity investments Core ROAE & Core ROATCE ex-solar (1)(2)(3)(4) 10.7% 8.9% 10.4% 16.2% 19.2% 11.1% 9.2% 10.7% 16.8% 19.9% Core ROAE ex-solar Core ROATCE ex-solar 3Q21 4Q21 1Q22 2Q22 3Q22 Core ROAE and Core ROATCE ex-solar for Q2 2022 would be 17.2% and 17.7%, 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 7.16% as of 3Q22 ◦ Bank tier 1 leverage ratio of 7.92% as of Q3 2022. ◦ Common Equity Tier 1 Capital of 11.91% • Tier 1 leverage ratio was 8 bps higher than the prior quarter, primarily driven by an increase in retained earnings generated by elevated Q3 net income • CET1 ratio of approximately 12% reflects conservative investment practices 3Q22 HIGHLIGHTS 7.85% 7.62% 7.34% 7.08% 7.16% 8.55% 8.17% 7.69% 7.28% 7.27% Tier 1 Leverage Leverage Ratio ex-Excess Liquidity 3Q21 4Q21 1Q22 2Q22 3Q22 13.98% 12.98% 12.36% 11.75% 11.91% 3Q21 4Q21 1Q22 2Q22 3Q22 (1) Excess liquidity is defined as cash in excess of $100.0 million

Tangible Book Value 481 23 (3) (1) 1 (30) 471 15.69 16.44 16.34 16.32 16.32 16.34 15.37 15.37 6/30/22 Earnings Dividends @ $.10/ share Buybacks - APIC Buybacks - Share count Other(1) AFS Mark 9/30/22 TANGIBLE COMMON EQUITY & TANGIBLE BOOK VALUE ($ millions) 3Q22 SUMMARY • TBV decline primarily driven by a $29.8 million decline from the previous quarter in the tax effected AFS mark-to-market adjustment ◦ TBV decline of 2.0% reflective of increases in long-term interest rates and widening of pricing spreads ◦ AFS mark adjustment considered temporary risk mitigated by our liquidity and borrowing capacity • Total Common Equity Ratio was 6.2% • Dividend Payout Ratio was 13.4% 19 (1) Other includes the effect of stock issuance

2022 Guidance 20 2022 FINANCIAL OUTLOOK - Exceed High End of Ranges • Core pre-tax pre-provision earnings(1) from $75 - $85 million to: ◦ $120 million (high end) - exceed by $9-10 million • Net Interest Income from $184 - $192 million to: ◦ $230 million (high end) - exceed by $8-$9 million • Approximately 7-8% 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 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 Nine Months Ended (in thousands) September 30, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Core operating revenue Net Interest income (GAAP) $ 67,628 $ 56,498 $ 43,387 $ 172,494 $ 127,223 Non-interest income 5,003 7,246 6,702 19,671 16,028 Less: Securities (gain) loss 1,844 582 (413) 2,264 (755) Less: Subdebt repurchase (gain) loss (617) — — (617) — Core operating revenue (non-GAAP) 73,858 64,326 49,676 193,812 142,496 Add: Tax (credits) depreciation on solar investments 1,306 862 796 2,105 6,393 Core operating revenue excluding solar tax impact (non-GAAP) $ 75,164 $ 65,188 $ 50,472 $ 195,917 $ 148,889 Core non-interest expense Non-interest expense (GAAP) $ 36,258 $ 34,346 $ 33,034 $ 105,001 $ 97,224 Less: Other one-time expenses (1) — (316) (392) (738) (1,482) Core non-interest expense (non-GAAP) $ 36,258 $ 34,030 $ 32,642 $ 104,263 $ 95,742 Core net income Net Income (GAAP) $ 22,944 $ 19,613 $ 14,416 $ 56,722 $ 37,013 Less: Securities (gain) loss 1,844 582 (413) 2,264 (755) Less: Subdebt repurchase (gain) loss (617) — — (617) — Add: Other one-time expenses — 316 392 738 1,482 Less: Tax on notable items (319) (233) 5 (619) (188) Core net income (non-GAAP) 23,852 20,278 14,400 58,488 37,552 Add: Tax (credits) depreciation on solar investments 1,306 862 796 2,105 6,393 Add: Tax effect of solar income (340) (224) (202) (546) (1,649) Core net income excluding solar tax impact (non-GAAP) $ 24,818 $ 20,916 $ 14,994 $ 60,047 $ 42,296 (1) Salary and COBRA expense reimbursement expense for positions eliminated plus expenses related to the termination of the merger agreement with Amalgamated Bank of Chicago

Reconciliation of Non-GAAP Financials 23 As of and for the As of and for the Three Months Ended Nine Months Ended (in thousands) September 30, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Tangible common equity Stockholders' equity (GAAP) $ 487,738 $ 498,041 $ 556,390 $ 487,738 $ 556,390 Less: Minority interest (133) (133) (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) (12,936) (12,936) Less: Core deposit intangible (3,366) (3,628) (4,453) (3,366) (4,453) Tangible common equity (non-GAAP) $ 471,303 $ 481,344 $ 538,868 $ 471,303 $ 538,868 Average tangible common equity Average stockholders' equity (GAAP) $ 511,800 $ 517,430 $ 555,757 $ 529,696 $ 548,733 Less: Minority interest (133) (133) (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) (12,936) (12,936) Less: Core deposit intangible (3,494) (3,755) (4,602) (3,754) (4,900) Average tangible common equity (non-GAAP) $ 495,237 $ 500,606 $ 538,086 $ 512,873 $ 530,764 Core return on average assets Core net income (non-GAAP) $ 23,852 $ 20,278 $ 14,400 $ 58,488 $ 37,552 Denominator: Total average assets 7,942,097 7,760,294 6,632,506 7,700,399 6,421,208 Core return on average assets (non-GAAP) 1.19% 1.05% 0.86% 1.02% 0.78% Core return on average assets excluding solar tax impact (non-GAAP) 1.24% 1.08% 0.90% 1.04% 0.88% Core return on average tangible common equity Core net income (non-GAAP) $ 23,852 $ 20,278 $ 14,400 $ 58,488 $ 37,552 Denominator: Average tangible common equity 495,237 500,606 538,086 512,873 530,764 Core return on average tangible common equity (non-GAAP) 19.11% 16.25% 10.62% 15.25% 9.46% Core return on average tangible common equity excluding solar tax impact (non-GAAP) 19.88% 16.76% 11.05% 15.65% 10.65% Core efficiency ratio Numerator: Core non-interest expense (non-GAAP) $ 36,258 $ 34,030 $ 32,642 $ 104,263 $ 95,742 Core operating revenue (non-GAAP) 73,858 64,326 49,676 193,812 142,496 Core efficiency ratio (non-GAAP) 49.09% 52.90% 65.71% 53.80% 67.19% Core efficiency ratio excluding solar tax impact (non-GAAP) 48.24% 52.20% 64.67% 53.22% 64.30%

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