EX-99.2 3 amalgamated-earningsdeck.htm EX-99.2 amalgamated-earningsdeck
1 Amalgamated Financial Corp. Third Quarter 2024 Earnings Presentation October 24, 2024


 
2 Safe Harbor Statements FORWARD-LOOKING STATEMENTS Statements included in this presentation that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward- looking statements are not statements of historical or current fact nor are they assurances of future performance and generally can be identified by the use of forward-looking terminology, such as “may,” “approximately,” “will,” “anticipate,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “possible,” and “intend,” or the negative thereof as well as other similar words and expressions of the future. Forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict as to timing, extent, likelihood and degree of occurrence, which could cause our actual results to differ materially from those anticipated in or by such statements. Potential risks and uncertainties include, but are not limited to, the following: 1. uncertain conditions in the banking industry and in national, regional and local economies in our core markets, which may have an adverse impact on our business, operations and financial performance; 2. deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses 3. deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors; 4. changes in our deposits, including an increase in uninsured deposits; 5. our ability to maintain sufficient liquidity to meet our deposit and debt obligations as they come due, which may require that we sell investment securities at a loss, negatively impacting our net income, earnings and capital; 6. unfavorable conditions in the capital markets, which may cause declines in our stock price and the value of our investments; 7. 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; 8. fluctuations or unanticipated changes in the interest rate environment including changes in net interest margin or changes in the yield curve that affect investments, loans or deposits; 9. the general decline in the real estate and lending markets, particularly in commercial real estate in our market areas, and the effects of the enactment of or changes to rent-control and other similar regulations on multi-family housing; 10. changes in legislation, regulation, public policies, or administrative practices impacting the banking industry, including increased minimum capital requirements and other regulation in the aftermath of recent bank failures; 11. the outcome of any legal proceedings that may be instituted against us; 12. our inability to achieve organic loan and deposit growth and the composition of that growth; 13. the composition of our loan portfolio, including any concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which we operate; 14. inaccuracy of the assumptions and estimates we make and policies that we implement in establishing our allowance for credit losses; 15. changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; 16. any matter that would cause us to conclude that there was impairment of any asset, including intangible assets; 17. limitations on our ability to declare and pay dividends; 18. 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; 19. increased competition for experienced members of the workforce including executives in the banking industry; 20. 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; 21. increased regulatory scrutiny and exposure from the use of “big data” techniques, machine learning, and artificial intelligence; 22. downgrade in our credit rating; 23. “greenwashing claims” against us and our Environmental, Social and Governance (“ESG”) products and increased scrutiny and political opposition to ESG and Diversity, Equity and Inclusion (“DEI”) practices; 24. any unanticipated or greater than anticipated adverse conditions (including the possibility of earthquakes, wildfires, and other natural disasters)affecting the markets in which we operate; 25. physical and transitional risks related to climate change as they impact our business and the businesses that we finance; 26. future repurchase of our shares through our common stock repurchase program; and 27. descriptions of assumptions underlying or relating to any of the foregoing. Additional factors which could affect the forward-looking statements can be found in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC’s website at www.sec.gov/. We disclaim any obligation to update or revise any forward-looking statements contained in this presentation, which speak only as of the date hereof, or to update the reasons why actual results could differ from those contained in or implied by such statements, whether as a result of new information, future events or otherwise, except as required by law. NON-GAAP FINANCIAL MEASURES This presentation contains certain non-GAAP financial measures including, without limitation, “Core Operating Revenue,” “Core Non-interest Expense,” “Tangible Common Equity,” “Average Tangible Common Equity,” “Core Efficiency Ratio,” “Core Net Income,” “Core ROAA,” and “Core ROATCE.” We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP. Specifically, we believe these non-GAAP financial measures (a) allow management and investors to better assess our performance by removing volatility that is associated with discrete items that are unrelated to our core business, and (b) enable a more complete understanding of factors and trends affecting our business. Non-GAAP financial measures, however, have inherent limitations, are not required to be uniformly applied, and are not audited. Accordingly, these non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and we strongly encourage investors to review the GAAP financial measures included in this presentation and not to place undue reliance on any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this presentation with other companies’ non-GAAP financial measures having the same or similar names. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies use. Reconciliations of non-GAAP financial disclosures to what we believe to be the most directly comparable GAAP measures found in this presentation are set forth in the final pages of this presentation and also may be viewed on the bank’s website, amalgamatedbank.com. You should assume that all numbers presented are unaudited unless otherwise noted.


 
3 $28.0mm Core Net Income1,2 $0.91 Core EPS1,2 $196.9mm Deposit Growth3 8.63% Leverage Ratio $72.1mm Net Interest Income 3.51% Net Interest Margin 3Q24 Highlights 2Q24 3Q24 2Q24 3Q24 2.7% 2Q24 3Q242Q24 3Q24 2Q24 3Q24 6.8% 2Q24 3Q24 5 bps 2.5% 4.2% 1 GAAP Net Income and GAAP EPS for 3Q24 are $27.9 million and $0.90, respectively 2 See non-GAAP disclosures on pages 28-29 3 Excludes Brokered CDs. GAAP deposit growth for 3Q24 was $145.6 million 7.1%


 
4 1.17% 1.10% 1.27% 1.27% 1.33% 3Q23 4Q23 1Q24 2Q24 3Q24 7.89% 8.07% 8.29% 8.42% 8.63% 12.63% 12.98% 13.68% 13.48% 13.82% Leverage Ratio CET1 3Q23 4Q23 1Q24 2Q24 3Q24 17.43 18.74 19.73 20.61 22.29 3Q23 4Q23 1Q24 2Q24 3Q24 17.16% 15.77% 17.14% 16.93% 16.66% 3Q23 4Q23 1Q24 2Q24 3Q24 CORE ROAAPER-SHARE KPI'S ($) TBV PER-SHARE ($) CORE ROAE Performance Tracking 1 Core metrics shown 0.76 0.72 0.83 0.85 0.91 2.34 2.48 2.48 2.52 2.62 EPS(1) Rev/Sh(1) 3Q23 4Q23 1Q24 2Q24 3Q24 CAPITAL RATIOS 6.72% 7.16% 7.41% 7.66% 8.14% 3Q23 4Q23 1Q24 2Q24 3Q24 TCE RATIO


 
5 TOTAL GAAP DEPOSITS1 ($bn) Deposit Portfolio 7.0 7.0 7.3 7.4 7.6 7.6 5.6 5.8 5.8 5.9 6.0 6.2 0.4 0.2 0.2 0.2 0.1 —1.0 1.0 1.3 1.3 1.5 1.4 On-BS Political Brokered CDs All Other Deposits 3Q23 4Q23 1Q24 2Q24 3Q24 10/17/24 2.13 1.46 1.19 1.26 0.78 0.47 0.54 CML - Labor CML- Social/Philanthropy CML - Political CML - NFP Consumer CML - Climate/Sustainability CML - Other(3) 1 For additional relevant data points, please refer to the Metrics Index slides on Appendix pages 26-27 2 See Core Deposits disclosure on Appendix page 20 for reconciliation of total GAAP Deposits to total Core Deposits 3 CML - Other contains but is not limited to: nursing homes, commercial real estate, and non-impact accounts TOTAL CORE DEPOSITS2 BY IMPACT SEGMENT ($bn) POLITICAL DEPOSITS1 ($bn) 0.2 0.3 0.4 0.5 0.6 0.8 1.1 1.2 0.6 0.7 0.8 1.0 1.0 1.1 1.3 1.2 0.6 0.7 0.8 1.0 1.2 1.4 1.7 2.0 1.7 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 10/17 $7.8bn High deposit points reflected in the quarter preceding a major election Low deposit points reflected in the quarter during a major election Initial deposit rebuild reflected in the quarter after a major election


 
6 SECURITIES – BOOK VALUE1,2,3 ($bn) Investment Securities 3.3 3.3 3.3 3.4 3.4 1.4 1.4 1.4 1.4 1.4 1.1 1.1 1.1 1.2 1.2 0.8 0.8 0.7 0.9 0.9 Non-Agency PACE Agency 3Q23 4Q23 1Q24 2Q24 3Q24 1 Securities book value excludes unrealized Available for Sale (AFS) gain / loss on sale 2 Non-Agency includes corporate bonds 3 For additional relevant data points, please refer to the Metrics Index slides on Appendix pages 26-27 SECURITIES – YIELDS2 ($bn) 5.44% 5.75% 5.58% 5.57% 5.69% 5.27% 5.43% 5.57% 5.52% 5.53% 3.12% 3.22% 3.36% 3.55% 3.51% Non-Agency Yield PACE Yield Agency Yield 3Q23 4Q23 1Q24 2Q24 3Q24


 
7 7 642 909 125 Investment Securities Composition HTM PORTFOLIO COMPOSITION1,2,3 ($mm) 238 328 18 Agency Non-Agency Corporates & Other $1,676mm $584mm VALUATION LOSS AS A % OF PORTFOLIO BALANCE2,3 AFS: AFS PORTFOLIO COMPOSITION1,2,3 ($mm) 1 Both AFS and HTM securities balances shown at amortized cost 2 PACE assets not included in portfolio composition or valuation loss charts 3 For additional relevant data points, please refer to the Metrics Index slides on Appendix pages 26-27 8.1% 6.7% 6.1% 5.2% 3.5% 3Q23 4Q23 1Q24 2Q24 3Q24 10.6% 7.2% 7.2% 7.1% 5.0% 3Q23 4Q23 1Q24 2Q24 3Q24 HTM:


 
8 Loans Held for Investment TOTAL LOANS ($bn) 4.36 4.41 4.42 4.47 4.55 4.56% 4.68% 4.76% 4.68% 4.79% Loan Yield 3Q23 4Q23 1Q24 2Q24 3Q24 1.4 1.4 1.4 1.4 1.4 1.1 1.1 1.2 1.2 1.3 1.1 1.0 1.0 1.0 1.1 0.5 0.4 0.4 0.4 0.4 0.3 0.4 0.4 0.4 0.4 0.03 0.02 0.02 0.02 0.02 Residential Multifamily C&I Consumer/other CRE Construction and land 3Q23 4Q23 1Q24 2Q24 3Q24 LOAN COMPOSITION ($bn) 1.1 0.2 0.8 0.4 0.1 0.3 0.2 0.04 Mission Aligned Loans Non-Impact Loans Multifamily CRE and Land C&I Consumer/Other MISSION-ALIGNED LOAN COMPOSITION1,2,3 ($bn) 1 Does not include residential or HELOC loans 2 For more detail on the mission-aligned loan portfolio, please refer to slides 22-23 3 For additional relevant data points, please refer to the Metrics Index slides on Appendix pages 26-27


 
9 20.1% 17.3% 18.2%3.4% 4.4% 36.6% Real Estate Portfolio Composition 14.7% 7.0% 14.2% 35.5% 5.4% 13.2% 10.0% CRE COMPOSITION BY PROPERTY TYPE1MULTIFAMILY COMPOSITION BY RENT STABILIZATION1 Category Weighted Avg. LTV Weighted Avg. DSCR3 Pre 1974 RS2 52.9% 1.54 Section 8 58.1% 1.42 421a 56.5% 1.51 FHEPs 57.4% 1.31 Other - Stabilized 51.6% 1.52 Free Market 48.3% 1.58 Category Weighted Avg. LTV Weighted Avg. DSCR3 Office 33.2% 1.57 Office - Owner Occupied 55.5% 3.22 Retail 46.7% 1.58 Industrial 37.0% 2.12 Mixed Use 40.1% 2.18 Education 49.1% 1.46 Other 37.4% 1.67 $415mm$1,292mm MULTIFAMILY DELINQUENCY SNAPSHOT ($mm) CRE DELINQUENCY SNAPSHOT ($mm)$ Total Change Last 2 Years % of Total Portfolio Non-Performing — -3.5 —% Criticized/Classified 13.4 -28.7 1.0% 30-89 DPD 8.1 8.10 0.6% Total TTM % of Total Portfolio Net Charge-Offs — —% $ Total Change Last 2 Years % of Total Portfolio Non-Performing 4.1 -0.8 1.0% Criticized/Classified 8.2 -31.4 2.0% 30-89 DPD 1.3 -3.1 0.3% Total TTM % of Total Portfolio Net Charge-Offs — —% 1 Balances shown do not include deferred fees and costs 2 Rent-Stabilized loans defined as any real estate loan that has units subject to rent-stabilization rules 3 Weighted Avg. DSCR values shown are calculated using bank-underwritten DSCR's only


 
10 Real Estate Portfolio By Maturity MULTIFAMILY PORTFOLIO MATURITY TIMELINE1 ($mm) $55 $149 $133 $302 $653 Pre 1974 RS Section 8 421a FHEPs Other-Stabilized Free Market 2024 2025 2026 2027 2028+ CRE PORTFOLIO MATURITY TIMELINE1 ($mm) $56 $92 $16 $11 $241 Office Office - Owner Occupied Retail Industrial Mixed Use Education Other 2024 2025 2026 2027 2028+ LTV DSCR2 49.2% 1.45 52.9% 1.70 51.6% 1.43 55.5% 1.43 52.2% 1.54 52.9% 1.52 LTV DSCR2 29.2% 1.34 46.6% 1.45 41.1% 1.47 37.1% 1.79 41.7% 2.26 40.9% 1.91Total:Total: 1 Balances shown do not include deferred fees and costs 2 Weighted Avg. DSCR values shown are calculated using bank-underwritten DSCR's only


 
11 Selected Real Estate Risk Exposure Profile RISK EXPOSURE PROFILE PRE-1974 RS2 AND OFFICE-ONLY LOAN DISTRIBUTION BY COUNTY1 ($mm) 42.8% 35.4% 9.5% 2.0% 10.3% Manhattan, NY Brooklyn (Kings), NY Queens, NY Ocean, NJ Other, NY $321mm Portfolio Balance ($mm) LTV DSCR3 Office-Only CRE Loans 61.0 33.2% 1.57 Pre-1974 RS2 Multifamily Loans 259.5 52.9% 1.54 Total 320.5 49.2% 1.54 Percent of Total Real Estate Portfolio 19% Percent of Total Loans 7% Percent of Total Assets 4% Percent of Tier 1 Capital 44% Percent of stabilized units in Pre-1974 RS Loans2 76% Percent of total multifamily units subject to Pre-1974 rent-stabilization rules 14% 1 Balances shown do not include deferred fees and costs 2 Rent-Stabilized loans defined as any real estate loan that has units subject to rent-stabilization rules 3 Weighted Avg. DSCR values shown are calculated using bank-underwritten DSCR's only MULTIFAMILY GEOGRAPHIC DISTRIBUTION1 ($mm) 70.6% 12.4% 3.8% 2.5% 10.7% NY DC CA MA Other $1,292mm CRE GEOGRAPHIC DISTRIBUTION1 ($mm) 79.7% 11.2% 2.5% 2.4% 4.2% NY CA IL CO Other $416mm


 
12 Net Interest Income & Margin 63.7 67.3 68.0 69.2 72.1 3.29% 3.44% 3.49% 3.46% 3.51% Net Interest Margin 3Q23 4Q23 1Q24 2Q24 3Q24 NIM 5 bps NET INTEREST INCOME & MARGIN ($mm)


 
13 Non-Interest Income and Expense 7.8 8.5 8.3 8.5 8.8 1.4 1.8 1.2 1.1 1.1 3.7 3.6 3.9 3.7 3.7 2.7 3.1 3.2 3.8 4.0 Retail banking Trust fee income Core other income 3Q23 4Q23 1Q24 2Q24 3Q24 NON-INTEREST EXPENSE1 ($mm) 37.0 37.7 38.5 39.5 40.7 37.3 37.8 38.2 39.5 41.0 51.7% 49.7% 50.4% 50.8% 50.4% 53.0% 49.2% 48.7% 50.4% 50.5% Core NIX NIX Core Eff Ratio Eff Ratio 3Q23 4Q23 1Q24 2Q24 3Q24 CORE NON-INTEREST INCOME1,2 ($mm) 1 See non-GAAP disclosures on pages 28-29 2 For additional relevant data points, please refer to the Metrics Index slides on Appendix pages 26-27


 
14 NPA / TOTAL ASSETS Credit Quality QUARTERLY NCO / AVERAGE LOANS1 3Q24 HIGHLIGHTS2 • Net charge-offs of 0.61% in 3Q24 compared to net charge offs of 0.25% in 2Q24 due to a fully reserved $4.5 million charge-off as part of a note sale of one $6.9 million delinquent, legacy leveraged, commercial and industrial loan • Pass rated loans are 98% of loan portfolio CRITICIZED AND CLASSIFIED LOANS ($mm) 0.46% 0.43% 0.42% 0.43% 0.34% 3Q23 4Q23 1Q24 2Q24 3Q24 0.27% 0.51% 0.20% 0.25% 0.61% Residential Solar Commercial 3Q23 4Q23 1Q24 2Q24 3Q24 88 111 101 95 89 3Q23 4Q23 1Q24 2Q24 3Q24 1 Annualized 2 For additional relevant data points, please refer to the Metrics Index slides on Appendix pages 26-27


 
15 Allowance for Credit Losses on Loans ALLOWANCE FOR CREDIT LOSSES ON LOANS / TOTAL LOANS 1.56% 1.49% 1.46% 1.42% 1.35% 3Q23 4Q23 1Q24 2Q24 3Q24 63.4 (6.9) (0.4) (4.4) 6.9 2.6 0.1 61.5 6/30/24 NCO's Loan Balances Specific Reserves Charge Off Expense Quant(1) Qual 9/30/24 ALLOWANCE WATERFALL ($mm) 1.01% 0.37% 0.40% 3.73% 0.91% 7.68% 6.44% C&I Multifamily CRE Land Residential Consumer Solar Consumer and Other ACL COVERAGE RATIO BY LOAN TYPE 1 Quantitative allowance build/release includes the impact of economic forecasts


 
16 2024 Guidance 2024 FINANCIAL OUTLOOK - REVISED • Core pre-tax pre-provision earnings from $149 million to $152 million to: ◦ $154 million to $156 million • Net Interest Income from $274 million to $278 million to: ◦ $279 million to $281 million - considers the effect of the forward rate curve through 2024 • YE Balance Sheet growth ~ 4%: ◦ Achieve >8.5% Tier 1 leverage ◦ Deposit gathering performance | Credit performance | Stable macroeconomic factors


 
Appendix


 
18 Ending Deposits + Brokered CDs 84.9 73.3 130.7 142.8 116.2 2020 2021 2022 2023 2024 YTD Trends KEY FINANCIAL TRENDS THROUGH 3Q24 ($bn) 9.9% CAGR1 9.9% CAGR1 18.9% CAGR1 NPA / Total Assets Loans + PACE 5.3 6.4 6.6 7.1 7.6 5.3 6.4 6.5 6.8 7.5 — — 0.1 0.2 0.1 2020 2021 2022 2023 3Q24 1.38% 0.77% 0.44% 0.43% 0.34% 2020 2021 2022 2023 3Q24 3.9 3.9 5.0 5.5 5.7 3.4 3.3 4.1 4.3 4.5 0.4 0.6 0.9 1.2 1.2 2020 2021 2022 2023 3Q24 >> 7.3% CAGR1 (Loans) Core Pre-Tax Pre-Provision Earnings2,3 ($mm) 9.5% CAGR1 (excl. Brokered CD) 1 Compounded Annual Growth Rate (“CAGR”) 2 See solar tax investment slide 19 for components of income exclusions 3 GAAP Pre-tax, pre-provision income was $119.1 million in 2024 YTD, $139.4 million in 2023, $123.2 in 2022, $70.4 in 2021, and $86.7 in 2020, the only years impacted by our solar investments 0


 
19 -3.8 3.3 1.8 -1.8 -1.1 -0.9 -2.0 -3.2 1.2 1.6 0.3 0.3 0.3 0.4 1.2 1.7 Tax credits (accelerated depreciation) on solar investments Steady state solar income FY22 FY23 1Q24 2Q24 3Q24 4Q24 FY24 FY25 OVERVIEW OF SOLAR TAX EQUITY INVESTMENTS • Metrics excluding the impact of tax credits or accelerated depreciation is a meaningful way to evaluate our performance and are adjusted in accordance with the below chart ◦ Immediate realization of tax benefits and subsequent accelerated depreciation of the value of the investment creates volatility in the GAAP and core earnings presentations ◦ Steady state income is generally achieved within 4-6 quarters of initial investment and all investments are net profitable over their lives (generally 5 years) ACTUAL AND PROJECTED SOLAR INCOME1,2,3 ($mm) Actual Forecast 1 Actual results and projected solar income forecasts have been revised in 4Q23 2 Balances presented are not tax effected 3 Refer to Reconciliation of Non-GAAP Financial Measures on slides 28-29 for further details on impact to key ratios Solar Tax-Equity Investments


 
20 Reconciliation of Core Deposits Total Core Deposits1, $mm 9/30/2024 Total Deposits (GAAP) 7,594.6 Less: Brokered CDs (102.1) Total Deposits, excl. Brokered CDs 7,492.5 Add: Deposits held off-balance sheet 1,177.9 Less: Non-Broker Listing Service CDs (1.5) Less: Other non-core, intercompany, and transactional accounts (57.8) Less: Political Deposit Increase since 12/31/23 (774.6) Core Deposits 7,836.6 Core Political Deposits1, $mm 9/30/2024 Political Deposits (GAAP) 1,531.7 Add: Political Deposits held off-balance sheet 430.3 Total Political Deposits 1,962.0 Less: Political Deposit Increase since 12/31/23 (774.6) Core Political Deposits 1,187.4 1 Core deposits are defined as total deposits including deposits held off-balance sheet, but excluding all brokered deposits, deposits from deposit listing services, temporary transaction deposits, certain escrow deposits, and intercompany deposits, transactional political deposits, and transitional deposits scheduled for our Trust business. We believe the most directly comparable GAAP financial measure is total deposits.


 
21 SUPER-CORE DEPOSITS2 BY IMPACT SEGMENT ($bn) 3Q24 HIGHLIGHTS • Super-core deposits2 make up $4.5 billion, or 58% of total core deposits ◦ Super-core deposits are minimum 5-years old & concentrated with mission-aligned customers ◦ Highly sticky • Weighted average account duration of our super-core deposits is 16 years, compared to 3 years for our other core deposits • Cash and borrowing potential totals $4.4 billion, or 130% of non-supercore deposits, with a total borrowings utilization rate of 0.1%, excluding subordinated debt • Total available liquidity, including cash, unpledged non-PACE securities and borrowing potential totals $4.8 billion or 143% of non-super-core deposits Impact Sector Total Balance ($M) % of Total Core Deposits Weighted Avg. Account Duration (Years) CML - Labor 1.6 21% 23 Cons - Labor 0.6 8% 23 CML - Social/Philanthropy 0.9 12% 9 CML - Political 0.9 11% 8 CML - Climate/Sustainability 0.2 2% 9 CML - NFP 0.1 2% 7 CML - Other(1) 0.2 3% 16 Total 4.5 58% 16 Other Core Deposits 3.4 42% 3 Total Core Deposits(3) 7.9 10 Super-Core Deposits 1 CML - Other contains but is not limited to: nursing homes, commercial real estate, and non-impact accounts 2 Super-core deposits are defined as all deposit accounts with a relationship length of at least 5 years, excluding brokered certificates of deposit 3 Core deposits are defined as total deposits including deposits held off-balance sheet, but excluding all brokered deposits, deposits from deposit listing services, temporary transaction deposits, certain escrow deposits, intercompany deposits, transactional political deposits and transitional deposits scheduled for our Trust business.. We believe the most directly comparable GAAP financial measure is total deposits. See Core Deposits disclosure on Appendix page 20


 
221 For more detail on specific loan types included in each impact segment, see Appendix page 23 2 Balances shown do not include deferred fees and costs 3 Does not include residential or HELOC loans Mission-Aligned Loan Portfolio 1,141 1 150 CRE AND LAND LOANS BY IMPACT SEGMENT1,2 ($mm) 68 4 76 5 7 277 C&I LOANS BY IMPACT SEGMENT1,2 ($mm) 33 571 187 44 11 212 CONSUMER AND OTHER LOANS BY IMPACT SEGMENT1,2,3 ($mm) 374 36 C&I Climate Protection Detail Solar: $414mm Alternative Energy: $94mm Other: $64mm MULTIFAMILY LOANS BY IMPACT SEGMENT1,2 ($mm)


 
23 LOAN TYPES INCLUDED WITHIN EACH IMPACT SEGMENT Impact Segment Definitions Climate Protection • Renewable Energy • Energy Efficiency • Energy Storage Community Empowerment • Non-Profits • CDFI's • Labor Unions • Political Organizations Health & Wellness • Medical Facilities • Rehabilitation Centers • Senior Care • Memory Care Housing • Low/Middle Income Housing • Workforce Housing Sustainable Commerce • Manufacturers • Distributors • Service Companies with Sustainable Practices Non-Impact • Other loans that are not mission-aligned, including legacy C&I agreements, legacy CRE loans, and certain government guaranteed facilities


 
24 631 28 (4) — — 1 27 684 20.61 21.52 21.4 21.4 21.4 21.41 22.29 22.29 6/30/24 Earnings Dividends @ $.12/ share Buybacks - Equity Impact Buybacks - Share count Other(1) AFS Mark 9/30/24 3Q24 SUMMARY • TBV increase of 8.2% primarily driven by: ◦ $27.9 million in net income ◦ $26.8 million improvement in the tax-affected mark-to- market adjustment • No accretive affect to TBV from share repurchase activity in the quarter • Dividend Payout Ratio was 13.4% Tangible Book Value TANGIBLE COMMON EQUITY & TANGIBLE BOOK VALUE ($mm) 1 Other includes the effect of stock issuance


 
25 631 21 6 28 (4) 1.4 684 7.66 7.88 7.94 8.27 8.23 8.24 8.24 8.14 Tangible Common Equity TCE Ratio 6/30/24 OCI - Rate Impact OCI - AFS Purch/Sales Earnings Dividends @ $.12/ share Buybacks and Stock Issuance 9/30/24 Tangible Asset Growth 3Q24 SUMMARY • Tangible Common Equity Ratio was 8.14%, up 48bps, or 6.2% from 7.66% in the prior quarter • TCE Ratio increase primarily driven by: ◦ $27.9 million in net income ◦ $26.8 million improvement in the tax-affected mark-to-market adjustment • Offset by $163 million increase in tangible assets ◦ $34.7 million through AFS mark-to-market improvement ◦ $128.3 million through operations • Cumulative OCI impact on TCE Ratio in the quarter: +28bps • Cumulative operations impact on TCE Ratio in the quarter: +30bps Tangible Common Equity Ratio TANGIBLE COMMON EQUITY & TCE RATIO ($mm) 1 Other includes the effect of stock issuance Operational ImpactOCI Impact Asset Growth


 
26 Metrics Index DEPOSITS Metric 3Q24 2Q24 Change QoQ Total Deposits ex Brokered ($bn) 7.49 7.30 0.19 Political Deposits ($mm) 1,962 1,730 232 Political Deposits as a % of Total Deposits1 26.2% 23.7% 2.5% Total Cost of Deposits1 151 bps 148 bps 3 bps Interest-Bearing Deposit Cost1 302 bps 274 bps 28 bps Non-Interest Bearing % of Deposit Portfolio1 50.7% 47.2% 3.5% Non-Interest Bearing % of Avg Deposits1 49.9% 46.3% 3.6% Total Uninsured Deposits ($bn) 4.52 4.49 0.03 Uninsured % of Total Deposits1 60.3% 61.5% -1.2% 2 day Liquidity Coverage of Uninsured Deposits (%) 107.2% 100.8% 6.4% Cash and Borrowing Capacity Coverage of Uninsured, Non-Supercore Deposits (%) 200.6% 174.2% 26.4% Loan/Deposit Ratio 59.9% 60.0% (0.1)% Metric 3Q24 2Q24 Change QoQ Total Mission-Aligned Loans ($bn) 2.52 2.41 0.11 Pass-Rated Loans as a % of Loan Portfolio 98.1% 97.9% 0.2% Total Non-Performing Assets ($mm) 28.6 35.7 (7.1) NPA/Total Assets (%) 0.34% 0.43% (0.09)% % of Loan Portfolio with Floating Rate of Interest 12.1% 11.8% 0.3% LOANS & CREDIT QUALITY Metric 3Q24 2Q24 Change QoQ Trust Assets Under Custody ($bn) 35.4 34.6 0.8 Trust Assets Under Management ($bn) 14.6 14.0 0.6 TRUST 1 Excludes Brokered CDs


 
27 Metrics Index Metric 3Q24 2Q24 Change QoQ Total Investment Securities Book Value1 ($bn) 3.4 3.4 — Agency Securities as % of Total Portfolio2 25.6% 25.3% 0.3% PACE LTV 11.9% 12.1% (0.2)% % of AAA rated Non-Agency MBS/ABS Securities3 86.3% 86.7% (0.4)% % of Non-Agency MBS/ABS Securities Rated A or Higher3 99.9% 99.9% —% Average Subordination for C&I CLOs 42.8% 44.2% (1.4)% % of Portfolio with Floating Rate of Interest4 21.0% 22.0% (1.0)% % of Portfolio with Floating Rate of Interest, excl. PACE4 31.0% 34.0% (3.0)% % of AFS Portfolio with Floating Rate of Interest4 30.0% 33.0% (3.0)% % of AFS Portfolio with Floating Rate of Interest, excl. PACE4 32.0% 35.0% (3.0)% % of HTM Portfolio with Floating Rate of Interest4 10.0% 11.0% (1.0)% % of HTM Portfolio with Floating Rate of Interest, excl. PACE4 29.0% 30.0% (1.0)% SECURITIES Metric 3Q24 2Q24 Change QoQ Weighted Avg Duration5, (years) Total Securities Portfolio, excl. PACE 2.5 2.4 0.1 AFS - total 2.2 2.0 0.2 AFS - ex-PACE 2.0 1.9 0.1 AFS - PACE 4.3 4.2 0.1 HTM - total 5.2 5.0 0.2 HTM - ex-PACE 4.0 3.8 0.2 HTM - PACE 5.7 5.6 0.1 Valuation Loss ($mm) AFS - total 51.7 86.5 (34.8) AFS - ex-PACE 59.0 86.6 (27.6) AFS - PACE (7.2) (0.1) (7.1) HTM - total 97.5 161.1 (63.6) HTM - ex-PACE 29.5 43.0 (13.5) HTM - PACE 68.1 118.1 (50.0) Valuation Loss as % of portfolio balance AFS - total 2.8 % 4.9 % (2.1) % AFS - ex-PACE 3.5 % 5.2 % (1.7) % AFS - PACE (5.1) % (0.1) % (5.0) % HTM - total 6.0 % 9.7 % (3.7) % HTM - ex-PACE 5.0 % 7.1 % (2.1) % HTM - PACE 6.6 % 11.2 % (4.6) % 1 Securities book value excludes unrealized Available for Sale (AFS) gain / loss on sale 2 Non-Agency includes corporate bonds and PACE Assessments 3 MBS/ABS does not include PACE assessments 4 Floating rate measures include the effect of interest rate risk hedges 5 Weighted avg. duration calculated using market values of securities


 
28 Reconciliation of Non-GAAP Financials As of and for the As of and for the Three Months Ended Nine Months Ended (in thousands) September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Core operating revenue Net Interest Income (GAAP) $ 72,107 $ 69,192 $ 63,728 $ 209,336 $ 193,992 Non-interest income (GAAP) 8,939 9,258 6,780 28,426 19,930 Add: Securities loss 3,230 2,691 1,699 8,695 5,052 Less: ICS one-way sell fee income (8,085) (4,859) — (15,847) — Less: Changes in fair value of loans held-for-sale 4,265 — — 4,265 — Less: Subdebt repurchase gain (669) (406) (637) (1,076) (1,417) Add: Tax (credits) depreciation on solar investments 1,089 1,815 — 1,095 — Core operating revenue (non-GAAP) $ 80,876 $ 77,691 $ 71,570 $ 234,894 $ 217,557 Core non-interest expense Non-interest expense (GAAP) $ 40,964 $ 39,512 $ 37,339 $ 118,629 $ 113,495 Add: Gain on settlement of lease termination — — — 499 — Less: Severance costs (241) (44) (332) (471) (617) Core non-interest expense (non-GAAP) $ 40,723 $ 39,468 $ 37,007 $ 118,657 $ 112,878 Core net income Net Income (GAAP) $ 27,942 $ 26,753 $ 22,308 $ 81,944 $ 65,284 Add: Securities loss 3,230 2,691 1,699 8,695 5,052 Less: ICS one-way sell fee income (8,085) (4,859) — (15,847) — Less: Changes in fair value of loans held-for-sale 4,265 — — 4,265 — Less: Subdebt repurchase gain (669) (406) (637) (1,076) (1,417) Less: Gain on settlement of lease termination — — — (499) — Add: Severance costs 241 44 332 471 617 Add: Tax (credits) depreciation on solar investments 1,089 1,815 — 1,095 — Less: Tax on notable items (19) 180 (396) 764 (1,151) Core net income (non-GAAP) $ 27,994 $ 26,218 $ 23,306 $ 79,812 $ 68,385


 
29 Reconciliation of Non-GAAP Financials As of and for the As of and for the Three Months Ended Nine Months Ended (in thousands) September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Tangible common equity Stockholders' equity (GAAP) $ 698,332 $ 646,112 $ 546,291 $ 698,332 $ 546,291 Less: Minority interest (133) (133) (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) (12,936) (12,936) Less: Core deposit intangible (1,669) (1,852) (2,439) (1,669) (2,439) Tangible common equity (non-GAAP) $ 683,594 $ 631,191 $ 530,783 $ 683,594 $ 530,783 Average tangible common equity Average stockholders' equity (GAAP) $ 668,401 $ 623,024 $ 538,753 $ 630,866 $ 523,078 Less: Minority interest (133) (133) (133) (133) (133) Less: Goodwill (12,936) (12,936) (12,936) (12,936) (12,936) Less: Core deposit intangible (1,759) (1,941) (2,547) (1,940) (2,768) Average tangible common equity (non-GAAP) $ 653,573 $ 608,014 $ 523,137 $ 615,857 $ 507,241 Core return on average assets Numerator: Core net income (non-GAAP)1 $ 27,994 $ 26,218 $ 23,306 $ 79,812 $ 68,385 Denominator: Total average assets (GAAP) 8,393,490 8,276,016 7,904,566 8,249,218 7,841,198 Core return on average assets (non-GAAP) 1.33% 1.27% 1.17% 1.29% 1.17% Core return on average tangible common equity Numerator: Core net income (non-GAAP)1 $ 27,994 $ 26,218 $ 23,306 $ 79,812 $ 68,385 Denominator: Average tangible common equity (non-GAAP) 653,573 608,014 523,137 615,857 507,241 Core return on average tangible common equity (non-GAAP) 17.04% 17.34% 17.67% 17.31% 18.02% Core efficiency ratio Numerator: Core non-interest expense (non-GAAP) $ 40,723 $ 39,468 $ 37,007 $ 118,657 $ 112,878 Denominator: Core operating revenue (non-GAAP) 80,876 77,691 71,570 234,894 217,557 Core efficiency ratio (non-GAAP) 50.35% 50.80% 51.71% 50.52% 51.88% 1 Calculated using Core Net Income (non-GAAP) in the numerator as detailed on page 28


 
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