The beat-and-raise quarter with record profitability, expanding NIM, and strong deposit growth confirms the franchise's earnings power. The normalized provision expense and declining criticized loans suggest the Q1 credit event was isolated. Watch for continued political deposit momentum into the 2026 midterm cycle and execution on the raised FY guidance; the new $40M buyback adds a capital return tailwind.
Price Chart
Executive Summary
Amalgamated Financial Corp. reported record Q2 2026 results with GAAP net income of $34.8M ($1.15/diluted share) and core net income of $33.1M ($1.10/diluted share), beating consensus EPS of $1.00 by 10%. Net interest margin expanded 3 bps to 3.78%, deposits grew $280M to $8.5B, and the company raised FY2026 guidance for net interest income to $338-340M and core pre-tax pre-provision earnings to $188-190M. The provision expense normalized to $4.4M from $13.5M in Q1, which had included a $9.2M reserve build on a single-borrower multifamily relationship. Credit quality remains manageable with criticized loans declining to $152M from $161M QoQ, though nonperforming assets ticked up slightly to 1.09% of total assets.
Key Financial Metrics
Key Facts
- Record GAAP net income of $34.8M ($1.15/diluted) vs $25.2M ($0.84/diluted) in Q1 2026
- Core net income of $33.1M ($1.10/diluted) beat consensus of $1.00 by 10.0%
- Net interest margin expanded 3 bps to 3.78% (record); net interest income grew 7.4% QoQ to $86.1M
- On-balance sheet deposits grew $280.3M (+3.4%) to $8.5B; political deposits hit $2.1B, surpassing 2024 election cycle peak
- FY2026 guidance raised: NII $338-340M (implied YoY growth 13-14%), core pre-tax pre-provision earnings $188-190M
- Provision expense normalized to $4.4M from $13.5M in Q1 (which included $9.2M single-borrower reserve build)
- Criticized/classified loans declined $9M to $152M; pass-rated loans at 97% of portfolio
- New $40M share repurchase program approved on June 9, 2026; quarterly dividend maintained at $0.17/share
- Core ROATCE hit 16.51% (record), up from 12.28% in Q1; core ROAA 1.42% vs 1.10%
- Tangible book value per share grew 3.3% to $27.47
Financial Impact
Record quarterly net income of $34.8M; core EPS of $1.10 beat consensus by $0.10 (10.0%); FY2026 NII guidance raised to $338-340M (+13-14% YoY)
Risk Factors
- Nonperforming assets remain elevated at 1.09% of total assets ($102.7M), driven by the single-borrower multifamily relationship ($78M) and a new $5.3M NYC multifamily nonaccrual
- Consumer solar loan portfolio shows elevated charge-offs (3.91% annualized) and high ACL coverage (9.83%)
- Uninsured deposits at 57% of on-balance sheet deposits ($4.8B); liquidity coverage of uninsured deposits slipped to 99.9%
- HTM securities portfolio carries $135.3M in unrealized losses (8.6% of portfolio balance), pressuring tangible common equity
- Political deposit concentration (24.5% of GAAP deposits) introduces cyclicality tied to election cycles
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001823608-26-000177 |
| Document: a202606earningsdeckfinal.htm | 0001823608-26-000177 |
| Document: amal-20260723.htm | 0001823608-26-000177 |
| Document: 0001823608-26-000177-index-headers.html | 0001823608-26-000177 |
| Document: 0001823608-26-000177-index.html | 0001823608-26-000177 |
| Document: 0001823608-26-000177.txt | 0001823608-26-000177 |
| 8-K Data (Synthetic) | 0001823608-26-000177 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $50.31 | awaiting T+20 | — | $50.88 (+1.13%) |
Oct 20, 2026 6d ago | 8-K | $47.82 | awaiting T+20 | — | $50.88 (+6.40%) |
Sep 17, 2026 5w ago | Insider Cluster | $47.40 $47.13 | ▲ +0.57% | ▲ +0.77% | $50.88 (−7.34%) |
Sep 15, 2026 5w ago | Insider Cluster | $46.62 $46.52 | ▲ +0.21% | ▲ +2.28% | $50.88 (−9.14%) |
Sep 11, 2026 6w ago | Insider Cluster | $47.78 $46.88 | ▼ −1.88% | ▼ −4.15% | $50.88 (+6.49%) |
Sep 11, 2026 6w ago | Insider Cluster | $47.78 $46.88 | ▲ +1.88% | ▲ +4.15% | $50.88 (−6.49%) |
Sep 10, 2026 6w ago | Insider Cluster | $47.87 $46.58 | ▲ +2.69% | ▲ +4.56% | $50.88 (−6.29%) |
Sep 8, 2026 6w ago | Insider Cluster | $47.83 $46.63 | ▲ +2.51% | ▲ +4.45% | $50.88 (−6.38%) |
Sep 2, 2026 7w ago | Insider Cluster | $49.04 $48.19 | ▼ −1.73% | ▼ −0.55% | $50.88 (+3.75%) |
Sep 2, 2026 7w ago | Insider Cluster | $49.04 $48.19 | ▼ −1.73% | ▼ −0.55% | $50.88 (+3.75%) |
US Market Status
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