Amalgamated Financial reports record Q2 net income of $34.8M, raises 2026 guidance

The company has scheduled an earnings conference call and webcast for July 23, 2026 at 11:00 a.m. Eastern Time to discuss second quarter 2026 financial results. A slide presentation will be used during the call and is available on the company's investor relations website.

The company achieved record quarterly net income of $34.8 million ($1.15 per diluted share) and record core net income of $33.1 million ($1.10 per diluted share) in Q2 2026. Net revenue reached $98.4 million. The $9.6 million increase in net income versus Q1 2026 was driven primarily by lower provision for credit losses and higher net interest income.

On-balance sheet deposits grew $280.3 million (3.4%) to $8.5 billion, with political deposits increasing $211.9 million (11.4%) to $2.1 billion, exceeding the 2024 election cycle peak. Net loans receivable increased $114.9 million (2.3%) to $5.1 billion, driven by $155.1 million (4.5%) growth in net commercial loans to $3.6 billion. The balance sheet expansion reflects strong franchise momentum.

Provision for credit losses was $4.4 million in Q2 2026, down $9.1 million from the prior quarter's $13.5 million. The prior quarter included $9.2 million of specific reserves on $78.0 million of multifamily loans to a single borrower after an expected default indication. The Q2 provision reflects normalization plus expected consumer charge-offs and model-driven reserve requirements.

The board approved a new $40 million share repurchase program on June 9, 2026. The company paid a dividend of $5.2 million ($0.17 per share) and tangible book value per share increased $0.88 (3.3%) to $27.47. Capital ratios remained strong with a Tier 1 leverage ratio of 9.20% and Common Equity Tier 1 ratio of 14.20%.

Amalgamated Financial reported second quarter 2026 core net income of $33.1 million and core earnings per share of $1.10. Net interest income was $86.1 million with a net interest margin of 3.78%. The company achieved deposit growth of $280.3 million in the quarter, which includes $96.8 million of deposits moved back on-balance sheet.

The company reported a leverage ratio of 9.20% and tangible book value per share of $27.47, representing a 3.3% quarterly increase. The tangible common equity ratio was 8.74%, up 7 basis points from the prior quarter. The dividend payout ratio was 14.9%.

Net charge-offs were 0.25% of average loans, including $3.0 million on consumer solar loans and $0.2 million on small business C&I loans. Pass-rated loans represent 97% of the portfolio. Non-performing assets increased primarily due to $67.7 million in multifamily loans from one borrower placed on nonaccrual status, with $41.5 million downgraded to criticized/classified.

The company raised its 2026 guidance, projecting net interest income of $338-340 million for the full year (implying 13-14% year-over-year growth) and core pre-tax pre-provision earnings of $188-190 million. The annual core ROAA target was revised to approximately 1.29%, and year-end balance sheet growth guidance was revised to approximately 8%.

Political deposits increased by $211 million to $2,075 million, representing 24.5% of GAAP deposits. The company's presentation shows political deposits historically peak in quarters preceding major elections and decline during election quarters, with rebuilding in subsequent quarters.