Amalgamated Q3 2026 Earnings: Record Profit on Deposit and Loan Growth

Amalgamated Financial Corp. (Nasdaq: AMAL) reported Q3 2026 operating revenue of $101.7 million, up from approximately $98.4 million in Q2, while diluted EPS increased to $1.20 from $1.15. GAAP net income reached a record $36.4 million as deposit and loan growth lifted net interest income, although net interest margin edged down one basis point to 3.77%.

Core Earnings Results

Sequential earnings growth reflected higher net interest income, a $1.5 million increase in non-interest income, and a $0.8 million reduction in the provision for credit losses. These benefits were partly offset by a $1.6 million increase in non-interest expense and a $0.9 million increase in income tax expense.

On a non-GAAP basis, core net income rose to a record $34.6 million from $33.1 million, while core diluted EPS increased to $1.14 from $1.10.

Q2 operating revenue and certain sequential percentages are approximate calculations based on the rounded figures disclosed by the company.

Non-interest income benefited from higher retail banking fees, consumer wealth-management and investment-service fees, and a $0.6 million increase in ICS One-Way Sell fee income. Expense growth included $1.2 million of additional occupancy costs associated with a temporary double-rent period for the new headquarters, $0.3 million of higher technology costs, and $0.7 million of additional compensation and benefit accruals tied to improved financial performance.

Business and Balance-Sheet Growth

Amalgamated expanded both sides of its balance sheet during the quarter. On-balance-sheet deposits rose 3.0%, while commercial loans and PACE assessments grew faster than total loans.

Loan growth was concentrated in commercial and industrial loans, which increased $56.3 million, and multifamily loans, which rose $39.8 million. Commercial real estate loans declined $5.5 million, while planned runoff reduced consumer solar loans by $9.7 million and residential loans by $30.7 million.

Total assets reached $9.7 billion, up 3.4%, but the period-end figure included $120.4 million of temporary pension-funding deposits that were withdrawn within one week. Excluding that temporary funding, adjusted assets were $9.6 billion. Average deposits increased $112.5 million, with the company citing growth across its labor and not-for-profit customer segments.

Political deposits declined in line with the election cycle, but overall funding costs remained contained. Non-interest-bearing deposits represented 42% of ending deposits, and the average cost of total deposits held steady at 1.46%.

Loan Growth Lifted Interest Income, but Funding Costs Kept Margin Flat

Net interest income increased by $1.9 million even though net interest margin declined slightly. Average loan balances rose $57.2 million, and new commercial loans, CPACE originations, and available-for-sale securities provided higher asset yields. Overall interest-earning asset yields nevertheless remained unchanged at 5.14%.

The benefit from asset growth was offset by higher interest expense as the bank gathered more interest-bearing deposits. The prior quarter also included a three-basis-point margin benefit from recaptured interest on a repaid nonaccrual construction loan, making the one-basis-point sequential decline less indicative of deterioration in the underlying asset mix.

Prepayment penalties contributed three basis points to net interest margin in both quarters. The main question for subsequent periods is whether continued commercial and PACE growth can lift interest income faster than the cost of attracting additional deposits.

Credit Quality, Liquidity, and Capital

The provision for credit losses declined to $3.6 million, but the quarter still included consumer and small-business charge-offs and additional reserves for two newly identified multifamily loans. No further reserve increase was recorded for the previously disclosed $78.0 million multifamily relationship, although resolution efforts remained ongoing.

Nonperforming assets increased by $2.3 million to $105.0 million following the addition of a $3.1 million multifamily loan to nonaccrual status. Because assets also grew, nonperforming assets declined slightly as a percentage of total assets, to 1.08% from 1.09%. Criticized or classified loans rose by $7.4 million, largely because an $11 million commercial and industrial loan was downgraded.

The allowance for credit losses increased $1.3 million to $70.2 million, equivalent to 1.35% of total loans. After quarter-end, a $3.8 million multifamily loan was resolved through a discounted payoff that resulted in a $2.5 million charge-off. The company said the loan was adequately reserved at quarter-end and did not expect the charge-off to materially affect future provision expense.

Amalgamated reported $5.0 billion of cash, borrowing capacity, and unpledged securities, equal to 98% of total uninsured deposits. Uninsured deposits represented 58% of on-balance-sheet deposits, or 52% when off-balance-sheet deposits were included.

The Common Equity Tier 1 ratio was 14.40%, the total risk-based capital ratio was 16.45%, and the Tier 1 leverage ratio was 9.31%. Stockholders’ equity declined $1.4 million to $833.6 million, primarily because higher long-term interest rates produced a $27.9 million increase in accumulated other comprehensive loss on available-for-sale securities. Net income partly offset that impact, along with $5.1 million of dividends and approximately $6.5 million of share repurchases. Tangible book value per share increased 0.2% to $27.54.

Recent Insider Transactions

Over the six months covered by the supplied insider data, insiders purchased 19,476 shares across 12 transactions and sold 907,703 shares across 19 transactions, resulting in net sales of 888,227 shares. The 10 most recently reported transactions were all sales; the transaction records do not establish the sellers’ motives.

Workers United accounted for approximately $33.6 million of the roughly $36.7 million in reported value across these 10 transactions.

Risks Investors Should Watch

• Multifamily and commercial credit migration: Nonperforming assets and criticized loans increased, while two multifamily loans required individual reserve analysis. The unresolved $78.0 million multifamily relationship remains an important credit exposure.
• Funding sensitivity: Higher interest expense on interest-bearing deposits offset part of the benefit from higher-yielding assets. Additional deposit gathering could continue to limit margin expansion.
• Uninsured-deposit concentration: Uninsured deposits represented 58% of on-balance-sheet deposits. Reported liquidity covered 98% of those deposits, but the concentration remains relevant to funding stability.
• Rate-driven capital volatility: Rising long-term rates caused a $27.9 million increase in accumulated other comprehensive loss, reducing stockholders’ equity despite record net income.
• Near-term operating costs: Headquarters-related double rent and ongoing technology projects increased expenses. The company expected restoration work and the exit from its previous headquarters to be completed in Q4 2026.

Summary

Amalgamated’s Q3 2026 results showed that deposit and commercial-loan growth can support higher net interest income even without margin expansion. Record earnings also benefited from higher fee income and a lower credit provision, while rising operating expenses, credit migration, uninsured-deposit exposure, and rate-related capital volatility are the main areas to monitor in subsequent quarters.