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Amalgamated Financial Corp. Reports First Quarter 2026 Financial Results; Margin Rises to 3.75% | Revenue Growth of 9.7% | Guidance Raised

AMAL
  • Amalgamated Financial Corp. reported net income of $25.2 million ($0.84 per diluted share) for the first quarter ended March 31, 2026, compared to $26.6 million in the prior quarter.
  • Net revenue increased to $93.4 million, driven by a $6.0 million rise in non-interest income & a $2.3 million increase in net interest income.
  • Net interest margin expanded 9 basis points to 3.75%, supported by higher-yielding commercial loan origination & a 104 basis point improvement in the ratio of non-interest bearing to interest-bearing deposits.
  • On-balance sheet deposits grew by $228.9 million to $8.2 billion, while off-balance sheet deposits rose $71.9 million to $1.1 billion.
  • Political deposits increased significantly by $132.9 million to $1.9 billion, comprising both on & off-balance sheet accounts.
  • Net loans receivable increased $65.5 million to $5.0 billion, with growth in multifamily loans (+$132.7 million) & commercial real estate loans (+$16.7 million) offset by a decrease in commercial & industrial loans.
  • Provision for credit losses totaled $13.5 million, including a $9.2 million specific reserve for a single-borrower multifamily relationship moved to nonaccrual status.
  • Nonperforming assets rose to $99.3 million from $28.7 million in the previous quarter, primarily due to the downgrade of $71.5 million in multifamily loans.
  • Tier 1 leverage ratio remained strong at 9.33%, with Common Equity Tier 1 ratio at 14.20% & tangible book value per share increasing 1.6% to $26.59.
  • The company repurchased approximately 80,000 shares during the quarter & paid a dividend of $0.17 per share.
  • Average cost of deposits decreased 5 basis points to 146 basis points, with non-interest-bearing deposits representing 41% of total deposits.
  • Loan yields increased 7 basis points to 5.18% as average loan balances rose $177.9 million.
  • PACE assessments grew $15.8 million to $1.3 billion, including CPACE growth of $6.8 million.
  • Multifamily & commercial real estate loan portfolios totaled $2.2 billion, representing a concentration of 232% to total risk-based capital.