Overview

• U.S. commercial bank's Q1 net revenue rose 9.7% yr/yr, net interest margin up to 3.75%

• Core EPS for Q1 fell to $0.80, with net income down from prior quarter

• Higher provision for credit losses tied to single multifamily borrower impacted results

Outlook

• Company says recent credit event is isolated and does not change performance outlook

• Amalgamated says it is focused on delivering revenue and earnings targets over the year

Result Drivers

• CREDIT LOSS PROVISION - Q1 results were impacted by an $8 mln increase in provision for credit losses, mainly due to a $9.2 mln reserve tied to a single multifamily borrower placed on nonaccrual

• NET INTEREST MARGIN - Net interest margin rose 9 basis points to 3.75%, primarily due to higher yields on new commercial loans and a greater proportion of non-interest-bearing deposits

• DEPOSIT GROWTH - On-balance sheet deposits increased by $229 mln, with political deposits up $133 mln, contributing to lower average deposit costs

Company press release: ID:nBw5Z1hH3a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Core EPS	Miss	$0.80	$0.95 (2 Analysts)
Q1 EPS		$0.84
Q1 Core Net Income		$24.1 mln
Q1 Net Income		$25.22 mln
Q1 Net Interest Income		$80.16 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Amalgamated Financial Corp is $42.00, about 0.7% below its April 22 closing price of $42.31

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

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