AMAL

Amalgamated Financial came into today on a solid run, up over the past month, yet the stock is slightly in the red in Friday trading after its Q3 2026 report. That gap between a soft 1-day move and strong headline numbers is where investors should focus. The bank just posted quarterly earnings of US$1.22 per share on US$98.1m of revenue, with core profitability metrics described as record in the call. Credit costs stayed contained and net interest margin held near management's guidance, which matters more for the long-term thesis than a 1.2% dip in the share price. Love Amalgamated Financial's record profitability but uneasy about a soft share price reaction on earnings day? Benchmark it against a wider field of resilient banks and lenders by scanning our 30 resilient stocks with low risk scores. - Revenue (Q3 2026 vs. Q3 2025): US$98.1m vs. US$80.3m (up about 22%) - Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): US$36.4m vs. US$26.8m (up about 36%) - Basic EPS (Q3 2026 vs. Q3 2025): US$1.22 vs. US$0.89 (up about 37%) - Net Interest Margin (Q3 2026 vs. Q3 2025): 3.77% vs. 3.6% (slight improvement) Record Q3, but management is already pointing to 2027. Ask Charlie what could push Amalgamated Financial's margin higher in 2027. The bullish story says Amalgamated Financial can lean on mission deposits, higher yielding assets and technology to keep efficiency tight and earnings scalable. "Analysts expect Amalgamated Financial to keep using its low cost, mission aligned deposits and higher yielding loan and PACE mix to support profitability, while technology and AI investments help maintain efficiency ratios around or below 50%." Q3 results were close to that script. On balance sheet deposits reached US$8.7b and funded record net interest income of US$87.9m. C PACE originations of US$54.2m show redeployment into targeted assets. The core efficiency ratio held near 49%, even with double rent and move related costs, so the cost discipline milestone remains intact. The bear view argues that credit flare ups and political deposits could upset this funding and margin story. "The earlier concern about elevated credit risks in solar and renewable energy lending is now concentrated in specific problem relationships, including a single multifamily borrower in the D.C. market that required an additional US$9.2 million provision and lifted nonperforming assets to US$99.3 million." Q3 credit data points to contained, rather than broad, stress. About 97% of loans are pass rated and annualized net charge offs sat at 20 bps, with Q4 provision guidance steady near US$5.0m to US$5.5m. Political deposits remain large at about US$2.0b, then eased to roughly US$1.7b by mid October, matching the expected election cycle runoff narrative rather than a surprise funding squeeze. Not everyone reads the same price the same way. → See the higher figure this Narrative lands on, and how it gets there. Amalgamated Financial reported a strong quarter while the share price reaction stayed muted. The real opportunity is studying stocks that could be undervalued before the market adjusts expectations. - Company 1 - 24% below our estimate - runs enterprise software, cloud infrastructure and AI metering tools embedded deeper into large customer workflows. - Company 2 - 50% below our estimate - expands a regional banking footprint through acquisitions while shifting toward richer fee income and partnership driven revenue streams. - Company 3 - 35% below our estimate - supplies cloud software and AI focused infrastructure where large pre-sold contracts depend on converting heavy capital spending into cash generation. Those are three of them. See the full list of 29 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AMAL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Amalgamated Financial (AMAL) came out with quarterly earnings of $1.14 per share, beating the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.56%. A quarter ago, it was expected that this bank would post earnings of $1 per share when it actually produced earnings of $1.1, delivering a surprise of +10%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Amalgamated Financial, which belongs to the Zacks Financial - SBIC & Commercial Industry industry, posted revenues of $101.74 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 2.50%. This compares to year-ago revenues of $85.61 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Amalgamated Financial shares have added about 49.3% since the beginning of the year versus the S&P 500's gain of 13.3%. While Amalgamated Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Amalgamated Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.06 on $97.92 million in revenues for the coming quarter and $4.06 on $386.8 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - SBIC & Commercial Industry is currently in the bottom 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, SLR Investment (SLRC), has yet to report results for the quarter ended September 2026. The results are expected to be released on November 3. This business development company is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of -17.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. SLR Investment's revenues are expected to be $48.83 million, down 14.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amalgamated Financial Corp. (AMAL) : Free Stock Analysis Report SLR Investment Corp. (SLRC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Achieved record core net income and revenue exceeding $100 million, driven by consistent execution of a differentiated deposit-led strategy. - Successfully redeployed capital from lower-yielding residential mortgages and consumer solar runoff into higher-performing commercial loans and C-PACE assessments. - Maintained a stable net interest margin of 3.77% by leveraging a mission-aligned funding base that provides strategic flexibility and liquidity. - Advanced modernization initiatives, including AI-enabled tools and technology infrastructure, to simplify operations and support scalable growth without adding proportional complexity. - Optimized the balance sheet to a target size of approximately $9.6 billion, focusing on asset productivity and risk-adjusted returns rather than growth for the sake of size. - Reported stable credit performance with 97% of loans rated as pass, despite ongoing active management of a specific multifamily relationship in Washington D.C. - Increased 2026 net interest income guidance to a range of $341 million to $342 million, reflecting strong third-quarter performance. - Anticipates modest margin compression in the fourth quarter due to the expected DDA/IBA deposit remix as the presidential election cycle concludes. - Projects a neutral balance sheet for the remainder of the year to manage liquidity needs and limit NII volatility during the post-election spend-down phase. - Expects opportunistic margin expansion in 2027 as DDA balances rebuild and the bank continues to harvest higher asset yields. - Assumes a provision expense of approximately $5 million to $5.5 million for the fourth quarter while working toward a resolution on nonaccrual multifamily assets. - Management is actively exploring avenues to accelerate the reduction of the consumer solar loan portfolio to optimize capital for more productive asset classes. - The bank is absorbing temporary increases in occupancy expenses related to its headquarters move and restoration costs for its previous location. - Political deposits remained stable at approximately $2 billion through the quarter-end but began a planned decline to $1.7 billion by mid-October. - A valuation adjustment from an equity investment contributed to an outsized non-interest income result during the third quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management explained that NII will likely flatten in Q4 due to the natural cyclicality of election spending, which shifts the funding mix away from zero-cost DDA balances. - The bank is prioritizing a neutral balance sheet to avoid borrowing during this period, with momentum expected to resume in early 2027. - Management highlighted C-PACE as a primary growth engine, noting its historical resilience and attractiveness in higher-rate environments. - New PACE originations are coming on at approximately 7% and could approach 8% in 2027, offering superior risk-adjusted returns compared to consumer solar. - Historically, the bank has maintained an interest-bearing deposit beta of just under 40%, and management expects to remain competitive while typically outperforming market averages. - The cost of funds trajectory is expected to remain stable, with the long-term story focused on asset yield harvesting rather than funding pressure. - The bank is in constructive discussions with the borrower and exploring potential note sales for degraded properties to preserve value. - While no assets were disposed of this quarter, management remains focused on resolving the nonaccrual status of these specific properties.

Deposit Growth of 3.0% | Commercial Loan Growth of 2.6% | PACE Growth of 4.0% NEW YORK, October 22, 2026--(BUSINESS WIRE)--Amalgamated Financial Corp. (the "Company" or "Amalgamated") (Nasdaq: AMAL), the holding company for Amalgamated Bank (the "Bank"), today announced financial results for the third quarter ended September 30, 2026. Priscilla Sims Brown, President and Chief Executive Officer, commented, "The story this quarter is not simply about delivering outstanding results. It is about demonstrating that the earnings power we have built is long-lasting and supported by multiple strengths across the bank." Third Quarter 2026 Highlights Profitability and Revenue - Record net income of $36.4 million, or $1.20 per diluted share. - Record core net income1 of $34.6 million, or $1.14 per diluted share. - Record operating revenue of $101.7 million, or $3.36 per diluted share. Deposits and Liquidity - On-balance sheet deposits increased $256.0 million, or 3.0%, to $8.7 billion. - Off-balance sheet deposits were $1.1 billion, nearly 8% higher than the prior quarter. - Political deposits decreased $76.5 million, or 3.7%, to $2.0 billion, in keeping with the election cycle. - Average cost of deposits at 146 basis points, same as the prior quarter. - Non-interest-bearing deposits were 42% of total deposits. - Cash, borrowing capacity, and unpledged securities totaled $5.0 billion, or 98% of total uninsured deposits. Margin and Assets - Net interest margin decreased by 1 basis point to 3.77%. - Net interest income grew $1.9 million, or 2.2%, to a record $87.9 million. - Net loans receivable increased $50.8 million, or 1.0%, to $5.1 billion. - Net commercial loans grew $93.5 million, or 2.6%, to $3.7 billion. - PACE assessments grew $53.0 million, or 4.0%, to $1.4 billion, including CPACE growth of $54.2 million. Capital and Returns - Tangible book value per share1 was $27.54. - Tier 1 leverage was 9.31% and Common Equity Tier 1 was 14.40%. - Tangible common equity ratio 1 was 8.44%. - Core return on average tangible common equity1 of 16.57%. - Core return on average assets1 of 1.44%. - Repurchased approximately 137,000 shares during the quarter, with $33.5 million in remaining capacity under the share repurchase program approved on June 9, 2026. - Paid dividend of $5.1 million, at $0.17 per share. Third Quarter Earnings Net income was $36.4 million, or $1.20 per diluted share, compared to $34.8 million, or $1.15 per diluted share, for the prior quarter. The $1.6 million increase during the quarter was primarily driven by a $1.9 million increase in net interest income, and a $1.5 million increase in non-interest income, which includes a $0.6 million increase in ICS One-Way Sell fee income from off-balance sheet deposits. There was also a $0.8 million decrease in provision for credit losses. This was partially offset by a $1.6 million increase in non-interest expense, and a $0.9 million increase in income tax expense. Core net income1 was $34.6 million, or $1.14 per diluted share, compared to $33.1 million, or $1.10 per diluted share for the prior quarter. The table below shows a pre-tax gain of $2.6 million related to non-core income items, $0.1 million of non-core pre-tax expense items, and $0.7 million in tax on notable items were excluded in the calculation of core net income in the third quarter of 2026. For additional details on each component item within the non-core income and expense figures listed below, please see the GAAP to Non-GAAP reconciliation included at the end of this document. (in thousands) | As of and for the Three Months Ended | | Core net income | September 30, 2026 | | June 30, 2026 | | QoQ Change Net Income (GAAP) | $ | 36,434 | | | $ | 34,766 | | | $ | 1,668 | Add: Non-core (income)/losses | | (2,572 | ) | | | (2,264 | ) | | | (308 | ) Add: Non-core expense | | 53 | | | | 80 | | | | (27 | ) Add: Tax benefit (expense) on notable items | | 655 | | | | 555 | | | | 100 | Core net income (non-GAAP) | $ | 34,570 | | | $ | 33,137 | | | $ | 1,433 | Net interest income was $87.9 million, compared to $86.1 million for the prior quarter. Interest earning asset yields remained flat at 5.14%. Loan interest income increased $1.4 million, as average loan balances increased $57.2 million, reflecting revenue generation upside from commercial loan originations. Loan yields remained flat, largely due to interest income previously recaptured from the payoff of a nonaccrual construction loan, which had a 5 basis point benefit on loan yields in the prior quarter. Interest income on securities increased $1.2 million and securities yields held steady as capital was allocated to PACE growth and AFS securities purchases in the quarter. Conversely, expense on total interest-bearing deposits increased $0.6 million as the average balance of total interest-bearing deposits increased by $29.1 million, combined with an increase in market rates during the quarter. Net interest margin was 3.77%, one basis point lower than the prior quarter, in which the prior quarter included a 3 basis point benefit on net interest margin from the recapture of the aforementioned construction loan income. In the current quarter, interest income benefited from higher asset yields from the origination of higher-yielding commercial loans, new CPACE originations, and newly purchased AFS securities. This was partially offset by higher interest expense due to interest-bearing deposit gathering. Income from loan prepayment penalties had a 3 basis point impact on net interest margin in the current quarter, as well as a 3 basis point impact in the prior quarter. Total cost of deposits remained flat at 1.46% quarter over quarter. Provision for credit losses was an expense of $3.6 million, a decrease of $0.8 million compared to an expense of $4.4 million in the prior quarter. The expense in the quarter was primarily driven by charge-offs on consumer and small business loans, as well as increases in required reserves on two newly identified multifamily loans requiring individual reserve analysis. No additional reserve increases were recorded during the third quarter related to the previously disclosed $78.0 million multifamily relationship. Efforts to resolve the exposures through foreclosure, note sales, or other exit strategies remain ongoing. Non-interest income was $13.8 million, compared to $12.3 million in the prior quarter. Excluding all non-core income items noted above, core non-interest income1 was $11.2 million, compared to $10.0 million in the prior quarter. The increase was primarily related to higher retail banking fees and fees for consumer wealth management and investment services. Non-interest expense was $48.9 million, an increase of $1.6 million from the prior quarter. Excluding non-core expense items noted above, core non-interest expense1 was $48.8 million, an increase of $1.6 million from the prior quarter. This was mainly driven by an expected $1.2 million increase in occupancy cost, which included a double rent period related to the lease of our new headquarters, which commenced during the quarter. The restoration work and exit of the previous headquarters office is expected to be completed in the fourth quarter of 2026. In addition, technology costs increased $0.3 million, consistent with the ongoing implementation of key infrastructure projects, while compensation and employee benefit costs rose by $0.7 million due to accruals related to improved financial performance. This was partially offset by a $0.2 million decrease in professional fees and a $0.2 million decrease in advertising expense. Provision for income tax expense was $12.8 million, compared to $11.9 million for the prior quarter. The effective tax rate was 26.0%, compared to 25.4% in the prior quarter. The current quarter tax rate includes recognition of a $0.6 million tax credit purchased in the quarter, and the prior quarter tax rate includes recognition of a $0.5 million purchased tax credit. Excluding the purchased tax credits and other discrete tax items, the current quarter tax rate would have been 27.2% and the prior quarter tax rate would have been 26.4%. The increase in the annualized effective tax rate was related to changes in income allocations for certain states taxes. Balance Sheet Quarterly Summary Total assets expanded to $9.7 billion at September 30, 2026, a $322.1 million, or 3.4% increase, and third quarter average assets were $9.5 billion. On the last day of the quarter, the balance sheet was impacted by $120.4 million of temporary pension funding deposits that were withdrawn within one week. Adjusted, total assets were $9.6 billion, in line with our target for the quarter. Notable changes within individual balance sheet line items include a $37.1 million increase in traditional securities and a $50.8 million increase in net loans receivable, funded by deposit growth in the quarter. On-balance sheet deposits increased by $256.0 million and average total deposits increased by $112.5 million, reflecting growth across the labor and not-for-profit segments. Off-balance sheet deposits increased by an additional $89.0 million in the quarter, and equity decreased by $1.4 million. Total net loans receivable at September 30, 2026 were $5.1 billion, an increase of $50.8 million, or 1.0% for the quarter. The loan balance increase was primarily driven by a $56.3 million increase in commercial and industrial loans, and a $39.8 million increase in multifamily loans, partially offset by a $5.5 million decrease in commercial real estate loans. Portfolios generating redeployed cash through planned runoff included a $9.7 million decrease in consumer solar loans, and a $30.7 million decrease in residential loans. Total on-balance sheet deposits at September 30, 2026 were $8.7 billion, an increase of $256.0 million, or 3.0%, during the quarter. Including accounts held off-balance sheet, deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $2.0 billion, a decrease of $76.5 million during the quarter. Non-interest-bearing deposits represented 41% of average total deposits and 42% of ending total deposits for the quarter, contributing to an average cost of total deposits of 146 basis points. Super-core deposits1 totaled approximately $5.1 billion, and had a weighted average life of 17 years. Total uninsured deposits were $5.1 billion, comprising 58% of on-balance sheet deposits, improved to 52% of total deposits when including those held off-balance sheet. Nonperforming assets totaled $105.0 million, or 1.08% of period-end total assets at September 30, 2026, an increase of $2.3 million, compared with $102.7 million, or 1.09% of period-end total assets on a linked quarter basis. The increase in nonperforming assets was driven by one $3.1 million multifamily loan that was placed on nonaccrual status this quarter. During the quarter, criticized or classified loans increased $7.4 million, largely driven by one $11 million commercial and industrial loan that was downgraded to criticized status, despite certain positive trends in the borrower's financial performance. This was partially offset by an upgrade of one $2.1 million commercial and industrial loan. During the quarter, the allowance for credit losses on loans increased $1.3 million to $70.2 million. The ratio of allowance to total loans was 1.35%, an increase of 1 basis point from 1.34% in the second quarter of 2026. Subsequent to quarter end, a $3.8 million DC multifamily loan was resolved through a discounted payoff, resulting in a $2.5 million charge-off. The loan was adequately reserved at quarter end; therefore, the charge-off is not expected to have a material impact on the provision for credit losses. Capital Quarterly Summary As of September 30, 2026, the Common Equity Tier 1 Capital ratio was 14.40%, the Total Risk-Based Capital ratio was 16.45%, and the Tier 1 Leverage Capital ratio was 9.31%. Stockholders' equity was $833.6 million, a decrease of $1.4 million during the quarter. The decrease in stockholders' equity was primarily driven by an increase of $27.9 million in accumulated other comprehensive loss due to the tax-effected mark-to-market adjustment on available for sale securities resulting from increases in long-term rates in the quarter. In addition, there were $5.1 million in dividends paid at $0.17 per outstanding share, and approximately $6.5 million in share buybacks during the quarter. This was primarily offset by $36.4 million of net income. Tangible book value per share1 increased 0.2% to $27.54. Tangible common equity1 decreased to 8.44% of tangible assets due to the above mentioned tax-effected mark-to-market adjustment, as well as higher average balance sheet size. Conference Call As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its third quarter 2026 results today, October 22, 2026 at 11:00 am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. Third Quarter 2026 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13762586. The telephonic replay will be available until October 29, 2026. Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of our website at https://ir.amalgamatedbank.com/. The online replay will remain available for a limited time beginning immediately following the call. The presentation materials for the call can be accessed on the investor relations section of our website at https://ir.amalgamatedbank.com/. ______________ 1 Definitions are presented under "Non-GAAP Financial Measures". Reconciliations of non-GAAP financial measures to the most comparable GAAP measure are set forth on the last page of the financial information accompanying this press release and may also be found on the Company's website, www.amalgamatedbank.com. About Amalgamated Financial Corp. Amalgamated Financial Corp. is a Delaware public benefit corporation and bank holding company. Founded in 1923 by the Amalgamated Clothing Workers of America, it provides commercial banking and trust services through Amalgamated Bank, a New York-based commercial bank and chartered trust company with offices or branches in New York City, Washington, D.C., Northern California, and Boston. The Bank is a member of the Global Alliance for Banking on Values and a certified B Corporation®. Non-GAAP Financial Measures This release (and the accompanying financial information and tables) refer to certain non-GAAP financial measures including, without limitation, "Core operating revenue," "Core non-interest expense," "Core non-interest income," "Core net income," "Tangible common equity," "Average tangible common equity," "Core return on average assets," "Core return on average tangible common equity," "Core efficiency ratio," "Super-core deposits," "Tangible assets," "Tangible book value," and "Traditional securities." Management utilizes this information to compare operating performance for September 30, 2026, versus certain periods in 2026 and 2025 and to prepare internal projections. We believe these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of operating performance. In addition, because intangible assets such as goodwill and other discrete items unrelated to the core business, which are excluded, vary extensively from company to company, we believe that the presentation of this information allows investors to more easily compare the results to those of other companies. The presentation of non-GAAP financial information, however, is not intended to be considered in isolation or as a substitute for GAAP financial measures. We strongly encourage readers to review the GAAP financial measures included in this release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this release with other companies' non-GAAP financial measures having the same or similar names. Reconciliations of non-GAAP financial disclosures to comparable GAAP measures found in this release are set forth in the final pages of this release and also may be viewed on our website, amalgamatedbank.com. Terminology Certain terms used in this release are defined as follows: "Core efficiency ratio" is defined as "Core non-interest expense" divided by "Core operating revenue." The Company believes the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income. "Core net income" is defined as net income after tax excluding gains and losses on sales of securities, ICS One-Way Sell fee income, gains or losses and changes in fair value on loans held-for-sale, gains on the sale of owned property, subdebt repurchase gain, costs related to branch closures, restructuring/severance costs, tax credits and accelerated depreciation on solar equity investments, and taxes on notable pre-tax items. The Company believes the most directly comparable GAAP financial measure is net income. "Core non-interest expense" is defined as total non-interest expense excluding costs related to branch closures, and restructuring/severance. The Company believes the most directly comparable GAAP financial measure is total non-interest expense. "Core non-interest income" is defined as total non-interest income excluding gains and losses on sales of securities, ICS One-Way Sell fee income, changes in fair value on loans held-for-sale, gains on the sale of owned property, subdebt repurchase gain, and tax credits and accelerated depreciation on solar equity investments. The Company believes the most directly comparable GAAP financial measure is non-interest income. "Core operating revenue" is defined as total net interest income plus "core non-interest income". The Company believes the most directly comparable GAAP financial measure is the total of net interest income and non-interest income. "Core return on average assets" is defined as "Core net income" divided by average total assets. The Company believes the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets. "Core return on average tangible common equity" is defined as "Core net income" divided by average "tangible common equity." The Company believes the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders' equity. "Super-core deposits" are defined as total deposits from commercial and consumer customers, with a relationship length of greater than 5 years. The Company believes the most directly comparable GAAP financial measure is total deposits. "Tangible assets" are defined as total assets excluding, as applicable, goodwill and core deposit intangibles. The Company believes the most directly comparable GAAP financial measure is total assets. "Tangible common equity", and "Tangible book value" are defined as stockholders' equity excluding, as applicable, minority interests, goodwill and core deposit intangibles. The Company believes that the most directly comparable GAAP financial measure is total stockholders' equity. "Tangible common equity ratio" is "Tangible common equity" divided by "Tangible assets." The Company believes the most directly comparable performance ratio derived from GAAP financial measures is an equity ratio calculated by dividing average equity by average assets. "Traditional securities" is defined as total investment securities excluding PACE assessments. The Company believes the most directly comparable GAAP financial measure is total investment securities. Forward-Looking Statements Statements included in this release that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified through the use of forward-looking terminology such as "may," "will," "anticipate," "aspire," "should," "would," "believe," "contemplate," "expect," "estimate," "continue," "in the future," and "intend," as well as other similar words and expressions of the future. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any or all of which could cause actual results to differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: - uncertain conditions in the banking industry and in national, regional and local economies in core markets, which may have an adverse impact on business, operations and financial performance; - deterioration in the financial condition of borrowers, as well as deterioration in the reputational profile of borrowers, resulting in significant increases in credit losses and provisions for those losses; - deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors; - changes in deposits, including an increase in uninsured deposits; - ability to maintain sufficient liquidity to meet deposit and debt obligations as they come due, which may require that the Company sell investment securities at a loss, negatively impacting net income, earnings and capital; - unfavorable conditions in the capital markets, which may cause declines in stock price and the value of investments; - negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumer confidence, the financial condition of borrowers and consumer spending habits, which may affect, among other things, the level of non-performing assets, charge-offs and provision expense; - fluctuations or unanticipated changes in the interest rate environment including changes in net interest margin or changes in the yield curve that affect investments, loans or deposits; - the general decline in the real estate and lending markets, particularly in commercial real estate in the Company's market areas, and the effects of the enactment of or changes to rent-control and other similar regulations on multi-family housing; - implementation by the current presidential administration of a regulatory reform agenda that is significantly different from that of the prior presidential administration, impacting the rule making, supervision, examination and enforcement of the banking regulation agencies; - changes in U.S. trade policies and other global political factors beyond the Company's control, including the imposition of tariffs, which raise economic uncertainty, potentially leading to slower growth and a decrease in loan demand; - the outcome of legal or regulatory proceedings that may be instituted against us; - inability to achieve organic loan and deposit growth and the composition of that growth; - composition of the Company's loan portfolio, including any concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which the Company operates; - inaccuracy of the assumptions and estimates the Company makes and policies that the Company implements in establishing the allowance for credit losses; - changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; - any matter that would cause the Company to conclude that there was impairment of any asset, including intangible assets; - limitations on the ability to declare and pay dividends; - the impact of competition with other financial institutions, including pricing pressures and the resulting impact on results, including compression to net interest margin; - increased competition for experienced members of the workforce including executives in the banking industry; - a failure in or breach of operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; - increased regulatory scrutiny, privacy concerns, and cyber risk and other exposure from the potential use of "big data" techniques, machine learning, and artificial intelligence in a wide range of applications including for fraud detection, credit underwriting, customer service, marketing, transaction execution, automated compliance and internal operations; - a downgrade in the Company's credit rating; - "greenwashing claims" against the Company and environmental, social, and governance ("ESG") products and increased scrutiny and political opposition to ESG and diversity, equity, and inclusion ("DEI") practices; - any unanticipated or greater than anticipated adverse conditions (including the possibility of earthquakes, wildfires, and other natural disasters) affecting the markets in which the Company operates; - physical and transitional risks related to climate change as they impact the business and the businesses that the Company finances; - future repurchase of the Company's shares through the Company's common stock repurchase program; and - descriptions of assumptions underlying or relating to any of the foregoing. Additional factors which could affect the forward-looking statements can be found in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC's website at https://www.sec.gov/. We disclaim any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law. Consolidated Statements of Income (unaudited) | Three Months Ended | | Nine Months Ended | September 30, | | June 30, | | September 30, | | September 30, ($ in thousands) | | 2026 | | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | INTEREST AND DIVIDEND INCOME | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) Loans | $ | 67,467 | | | $ | 66,019 | | | $ | 62,321 | | | $ | 196,958 | | | $ | 178,887 | Securities | | 50,655 | | | | 49,552 | | | | 46,023 | | | | 144,395 | | | | 131,414 | Interest-bearing deposits in banks | | 1,638 | | | | 1,592 | | | | 1,241 | | | | 4,884 | | | | 4,074 | Total interest and dividend income | | 119,760 | | | | 117,163 | | | | 109,585 | | | | 346,237 | | | | 314,375 | INTEREST EXPENSE | | | | | | | | | Deposits | | 31,202 | | | | 30,563 | | | | 32,583 | | | | 90,379 | | | | 92,093 | Borrowed funds | | 618 | | | | 543 | | | | 555 | | | | 1,705 | | | | 2,348 | Total interest expense | | 31,820 | | | | 31,106 | | | | 33,138 | | | | 92,084 | | | | 94,441 | NET INTEREST INCOME | | 87,940 | | | | 86,057 | | | | 76,447 | | | | 254,153 | | | | 219,934 | Provision for credit losses | | 3,628 | | | | 4,429 | | | | 5,301 | | | | 21,545 | | | | 10,787 | Net interest income after provision for credit losses | | 84,312 | | | | 81,628 | | | | 71,146 | | | | 232,608 | | | | 209,147 | NON-INTEREST INCOME | | | | | | | | | Trust Department fees | | 4,275 | | | | 4,232 | | | | 3,969 | | | | 12,813 | | | | 12,038 | Service charges on deposit accounts | | 8,249 | | | | 6,863 | | | | 4,261 | | | | 22,315 | | | | 11,572 | Bank-owned life insurance income | | 661 | | | | 648 | | | | 1,050 | | | | 2,631 | | | | 2,472 | Losses on sale of securities and other assets, net | | (427 | ) | | | (39 | ) | | | (1,226 | ) | | | (1,288 | ) | | | (2,946 | ) Gain on sale of loans and changes in fair value on loans held-for-sale, net | | — | | | | — | | | | 70 | | | | 12 | | | | 920 | Equity method investments income (loss) | | 226 | | | | 227 | | | | 597 | | | | 1,077 | | | | (1,860 | ) Other income | | 817 | | | | 373 | | | | 440 | | | | 1,831 | | | | 1,396 | Total non-interest income | | 13,801 | | | | 12,304 | | | | 9,161 | | | | 39,391 | | | | 23,592 | NON-INTEREST EXPENSE | | | | | | | | | Compensation and employee benefits | | 27,837 | | | | 27,181 | | | | 25,459 | | | | 80,767 | | | | 72,013 | Occupancy and depreciation | | 4,698 | | | | 3,523 | | | | 3,452 | | | | 12,376 | | | | 10,220 | Professional fees | | 2,807 | | | | 3,008 | | | | 3,387 | | | | 9,551 | | | | 11,410 | Technology | | 7,738 | | | | 7,412 | | | | 5,981 | | | | 21,768 | | | | 17,084 | Office maintenance and depreciation | | 551 | | | | 484 | | | | 582 | | | | 1,585 | | | | 1,782 | Amortization of intangible assets | | 105 | | | | 105 | | | | 144 | | | | 315 | | | | 431 | Advertising and promotion | | 684 | | | | 900 | | | | 497 | | | | 2,190 | | | | 960 | Federal deposit insurance premiums | | 1,130 | | | | 1,030 | | | | 1,000 | | | | 3,165 | | | | 2,800 | Other expense | | 3,326 | | | | 3,669 | | | | 3,115 | | | | 10,358 | | | | 9,152 | Total non-interest expense | | 48,876 | | | | 47,312 | | | | 43,617 | | | | 142,075 | | | | 125,852 | Income before income taxes | | 49,237 | | | | 46,620 | | | | 36,690 | | | | 129,924 | | | | 106,887 | Income tax expense | | 12,803 | | | | 11,854 | | | | 9,900 | | | | 33,500 | | | | 29,080 | Net income | $ | 36,434 | | | $ | 34,766 | | | $ | 26,790 | | | $ | 96,424 | | | $ | 77,807 | Earnings per common share - basic | $ | 1.22 | | | $ | 1.16 | | | $ | 0.89 | | | $ | 3.23 | | | $ | 2.55 | Earnings per common share - diluted | $ | 1.20 | | | $ | 1.15 | | | $ | 0.88 | | | $ | 3.19 | | | $ | 2.53 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consolidated Statements of Financial Condition ($ in thousands) | September 30, 2026 | | June 30, 2026 | | December 31, 2025 Assets | (unaudited) | | (unaudited) | | Cash and due from banks | $ | 4,129 | | | $ | 4,173 | | | $ | 4,501 | Interest-bearing deposits in banks | | 258,391 | | | | 163,611 | | | | 286,716 | Total cash and cash equivalents | | 262,520 | | | | 167,784 | | | | 291,217 | Securities: | | | | | Available for sale, at fair value | | | | | Traditional securities | | 2,081,672 | | | | 2,034,532 | | | | 1,580,049 | Property Assessed Clean Energy ("PACE") assessments | | 195,345 | | | | 206,302 | | | | 203,502 | | | 2,277,017 | | | | 2,240,834 | | | | 1,783,551 | Held-to-maturity, at amortized cost: | | | | | Traditional securities, net of allowance for credit losses of $37, $38, and $41, respectively | | 431,393 | | | | 441,428 | | | | 476,950 | PACE assessments, net of allowance for credit losses of $809, $749, and $703, respectively | | 1,193,946 | | | | 1,130,119 | | | | 1,077,065 | | | 1,625,339 | | | | 1,571,547 | | | | 1,554,015 | | | | | | Loans held for sale | | 459 | | | | 459 | | | | 2,814 | Loans receivable, net of deferred loan origination fees and costs | | 5,201,124 | | | | 5,149,085 | | | | 4,957,273 | Allowance for credit losses | | (70,200 | ) | | | (68,939 | ) | | | (57,586 | ) Loans receivable, net | | 5,130,924 | | | | 5,080,146 | | | | 4,899,687 | | | | | | Resell agreements | | 63,238 | | | | 59,271 | | | | 48,662 | Federal Home Loan Bank of New York ("FHLBNY") stock, at cost | | 5,249 | | | | 5,249 | | | | 5,009 | Accrued interest receivable | | 64,533 | | | | 63,795 | | | | 65,128 | Premises and equipment, net | | 40,904 | | | | 20,237 | | | | 4,685 | Bank-owned life insurance | | 109,111 | | | | 108,451 | | | | 108,941 | Right-of-use lease asset | | 59,927 | | | | 7,551 | | | | 9,602 | Deferred tax asset, net | | 43,645 | | | | 33,310 | | | | 30,750 | Goodwill | | 12,936 | | | | 12,936 | | | | 12,936 | Intangible assets, net | | 598 | | | | 704 | | | | 913 | Equity method investments | | 2,979 | | | | 5,505 | | | | 4,479 | Other assets | | 34,304 | | | | 33,762 | | | | 47,447 | Total assets | $ | 9,733,683 | | | $ | 9,411,541 | | | $ | 8,869,836 | Liabilities | | | | | Deposits | $ | 8,714,440 | | | $ | 8,458,414 | | | $ | 7,949,241 | Borrowings | | 59,845 | | | | 69,754 | | | | 69,547 | Operating leases | | 73,901 | | | | 9,094 | | | | 12,255 | Other liabilities | | 51,936 | | | | 39,286 | | | | 44,329 | Total liabilities | | 8,900,122 | | | | 8,576,548 | | | | 8,075,372 | Stockholders' equity | | | | | Common stock, par value $0.01 per share | | 315 | | | | 315 | | | | 312 | Additional paid-in capital | | 298,135 | | | | 296,491 | | | | 294,134 | Retained earnings | | 648,273 | | | | 616,925 | | | | 567,269 | Accumulated other comprehensive loss, net of income taxes | | (68,702 | ) | | | (40,796 | ) | | | (32,088 | ) Treasury stock, at cost | | (44,460 | ) | | | (37,942 | ) | | | (35,163 | ) Total stockholders' equity | | 833,561 | | | | 834,993 | | | | 794,464 | Total liabilities and stockholders' equity | $ | 9,733,683 | | | $ | 9,411,541 | | | $ | 8,869,836 | | | | | | | | | | | Select Financial Data | As of and for the | | As of and for the | Three Months Ended | | Nine Months Ended | September 30, | | June 30, | | September 30, | | September 30, (Shares in thousands) | 2026 | | 2026 | | 2025 | | 2026 | | 2025 Selected Financial Ratios and Other Data: | | | | | | | | | Earnings per share | | | | | | | | | Basic | $ | 1.22 | | $ | 1.16 | | $ | 0.89 | | $ | 3.23 | | $ | 2.55 Diluted | | 1.20 | | | 1.15 | | | 0.88 | | | 3.19 | | | 2.53 Core net income (non-GAAP) | | | | | | | | | Basic | $ | 1.16 | | $ | 1.11 | | $ | 0.91 | | $ | 3.08 | | $ | 2.68 Diluted | | 1.14 | | | 1.10 | | | 0.91 | | | 3.04 | | | 2.66 Book value per common share | $ | 27.99 | | $ | 27.93 | | $ | 25.78 | | $ | 27.99 | | $ | 25.78 Tangible book value per share (non-GAAP) | $ | 27.54 | | $ | 27.47 | | $ | 25.31 | | $ | 27.54 | | $ | 25.31 Common shares outstanding, par value $.01 per share(1) | | 29,778 | | | 29,900 | | | 30,089 | | | 29,778 | | | 30,089 Weighted average common shares outstanding, basic | | 29,879 | | | 29,878 | | | 30,176 | | | 29,858 | | | 30,470 Weighted average common shares outstanding, diluted | | 30,241 | | | 30,189 | | | 30,411 | | | 30,226 | | | 30,754 (1) 70,000,000 shares authorized; 31,221,815, 31,207,172, and 31,006,249 shares issued for the periods ended September 30, 2026, June 30, 2026, and September 30, 2025 respectively, and 29,777,958, 29,900,147, and 30,088,747 shares outstanding for the periods ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. Select Financial Data | As of and for the | | As of and for the | Three Months Ended | | Nine Months Ended | September 30, | | June 30, | | September 30, | | September 30, | 2026 | | 2026 | | 2025 | | 2026 | | 2025 Selected Performance Metrics: | | | | | | | | | Return on average assets | 1.52% | | 1.49% | | 1.23% | | 1.39% | | 1.23% Core return on average assets (non-GAAP) | 1.44% | | 1.42% | | 1.27% | | 1.33% | | 1.29% Return on average equity | 17.19% | | 17.04% | | 13.98% | | 15.65% | | 14.03% Core return on average tangible common equity (non-GAAP) | 16.57% | | 16.51% | | 14.65% | | 15.16% | | 15.01% Average equity to average assets | 8.86% | | 8.77% | | 8.80% | | 8.91% | | 8.76% Tangible common equity to tangible assets (non-GAAP) | 8.44% | | 8.74% | | 8.79% | | 8.44% | | 8.79% Loan yield | 5.21% | | 5.21% | | 5.22% | | 5.20% | | 5.09% Securities yield | 5.12% | | 5.12% | | 5.09% | | 5.12% | | 5.12% Deposit cost | 1.46% | | 1.46% | | 1.67% | | 1.46% | | 1.63% Net interest margin | 3.77% | | 3.78% | | 3.60% | | 3.77% | | 3.57% Efficiency ratio (1) | 48.04% | | 48.10% | | 50.95% | | 48.40% | | 51.68% Core efficiency ratio (non-GAAP) | 49.23% | | 49.15% | | 50.17% | | 49.31% | | 50.48% | | | | | | | | | Asset Quality Ratios: | | | | | | | | | Nonaccrual loans to total loans | 2.01% | | 1.98% | | 0.47% | | 2.01% | | 0.47% Nonperforming assets to total assets | 1.08% | | 1.09% | | 0.26% | | 1.08% | | 0.26% Allowance for credit losses on loans to nonaccrual loans | 67.12% | | 67.50% | | 250.60% | | 67.12% | | 250.60% Allowance for credit losses on loans to total loans | 1.35% | | 1.34% | | 1.18% | | 1.35% | | 1.18% Annualized net charge-offs to average loans | 0.20% | | 0.25% | | 0.81% | | 0.24% | | 0.44% | | | | | | | | | Liquidity Ratios: | | | | | | | | | 2 day Liquidity Coverage of Uninsured Deposits % | 97.85% | | 99.86% | | 101.87% | | 97.85% | | 101.87% Cash and Borrowing Capacity Coverage of Uninsured, Non-Supercore Deposits (%) | 168.27% | | 171.27% | | 166.10% | | 168.27% | | 166.10% | | | | | | | | | Capital Ratios: | | | | | | | | | Tier 1 leverage capital ratio | 9.31% | | 9.20% | | 9.18% | | 9.31% | | 9.18% Tier 1 risk-based capital ratio | 14.40% | | 14.20% | | 14.21% | | 14.40% | | 14.21% Total risk-based capital ratio | 16.45% | | 16.43% | | 16.41% | | 16.45% | | 16.41% Common equity tier 1 capital ratio | 14.40% | | 14.20% | | 14.21% | | 14.40% | | 14.21% | | | | | | | | | (1) Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income Loan and PACE Assessments Portfolio Composition (In thousands) | At September 30, 2026 | | At June 30, 2026 | | At September 30, 2025 | Amount | | % of total loans | | Amount | | % of total loans | | Amount | | % of total loans Commercial portfolio: | | | | | | | | | | | Commercial and industrial | $ | 1,363,376 | | | 26.2% | | $ | 1,307,075 | | | 25.4% | | $ | 1,273,927 | | | 26.6% Multifamily | | 1,901,418 | | | 36.6% | | | 1,861,575 | | | 36.2% | | | 1,454,104 | | | 30.4% Commercial real estate | | 430,630 | | | 8.3% | | | 436,144 | | | 8.5% | | | 396,197 | | | 8.3% Construction and land development | | 19,486 | | | 0.3% | | | 16,652 | | | 0.2% | | | 22,554 | | | 0.4% Total commercial portfolio | | 3,714,910 | | | 71.4% | | | 3,621,446 | | | 70.3% | | | 3,146,782 | | | 65.7% | | | | | | | | | | | Retail portfolio: | | | | | | | | | | | Residential real estate lending | | 1,168,855 | | | 22.5% | | | 1,199,552 | | | 23.3% | | | 1,277,355 | | | 26.7% Consumer solar | | 293,799 | | | 5.6% | | | 303,538 | | | 5.9% | | | 335,531 | | | 7.0% Consumer and other | | 23,560 | | | 0.5% | | | 24,549 | | | 0.5% | | | 29,104 | | | 0.6% Total retail portfolio | | 1,486,214 | | | 28.6% | | | 1,527,639 | | | 29.7% | | | 1,641,990 | | | 34.3% Total loans held for investment | | 5,201,124 | | | 100.0% | | | 5,149,085 | | | 100.0% | | | 4,788,772 | | | 100.0% | | | | | | | | | | | Allowance for credit losses | | (70,200 | ) | | | | | (68,939 | ) | | | | | (56,479 | ) | | Loans receivable, net | $ | 5,130,924 | | | | | $ | 5,080,146 | | | | | $ | 4,732,293 | | | | | | | | | | | | | | PACE assessments: | | | | | | | | | | | Available for sale, at fair value | | | | | | | | | | | Residential PACE assessments | | 195,345 | | | 14.1% | | | 206,302 | | | 15.5% | | | 208,427 | | | 16.9% | | | | | | | | | | | Held-to-maturity, at amortized cost | | | | | | | | | | | Commercial PACE assessments | | 419,625 | | | 30.2% | | | 365,470 | | | 27.3% | | | 300,310 | | | 24.1% Residential PACE assessments | | 775,130 | | | 55.8% | | | 765,398 | | | 57.2% | | | 734,819 | | | 59.0% Total Held-to-maturity PACE assessments | | 1,194,755 | | | 86.0% | | | 1,130,868 | | | 84.5% | | | 1,035,129 | | | 83.1% Total PACE assessments | | 1,390,100 | | | 100.0% | | | 1,337,170 | | | 100.0% | | | 1,243,556 | | | 100.0% | | | | | | | | | | | Allowance for credit losses | | (809 | ) | | | | | (749 | ) | | | | | (669 | ) | | Total PACE assessments, net | $ | 1,389,291 | | | | | $ | 1,336,421 | | | | | $ | 1,242,887 | | | | | | | | | | | | | | Loans receivable, net and total PACE assessments, net as a % of Deposits | | 74.8 | % | | | | | 75.9 | % | | | | | 76.9 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Interest Income Analysis | Three Months Ended | September 30, 2026 | | June 30, 2026 | | September 30, 2025 (In thousands) | Average Balance | Income / Expense | Yield / Rate | | Average Balance | Income / Expense | Yield / Rate | | Average Balance | Income / Expense | Yield / Rate Interest-earning assets: | | | | | | | | | | | | | | | | | Interest-bearing deposits in banks | $ | 192,593 | | $ | 1,638 | | 3.37% | | $ | 187,933 | | $ | 1,592 | | 3.40% | | $ | 124,728 | | $ | 1,241 | | 3.95% Securities(1) | | 3,858,359 | | | 49,805 | | 5.12% | | | 3,807,977 | | | 48,628 | | 5.12% | | | 3,499,587 | | | 44,895 | | 5.09% Resell agreements | | 56,751 | | | 850 | | 5.94% | | | 63,570 | | | 924 | | 5.83% | | | 62,892 | | | 1,128 | | 7.12% Loans receivable, net (2) | | 5,137,599 | | | 67,467 | | 5.21% | | | 5,080,371 | | | 66,019 | | 5.21% | | | 4,732,210 | | | 62,321 | | 5.22% Total interest-earning assets | | 9,245,302 | | | 119,760 | | 5.14% | | | 9,139,851 | | | 117,163 | | 5.14% | | | 8,419,417 | | | 109,585 | | 5.16% Non-interest-earning assets: | | | | | | | | | | | | | | | | | Cash and due from banks | | 5,651 | | | | | | | 4,024 | | | | | | | 7,160 | | | | Other assets | | 245,747 | | | | | | | 195,172 | | | | | | | 214,809 | | | | Total assets | $ | 9,496,700 | | | | | | $ | 9,339,047 | | | | | | $ | 8,641,386 | | | | | | | | | | | | | | | | | | | | | Interest-bearing liabilities: | | | | | | | | | | | | | | | | | Savings, NOW and money market deposits | $ | 4,811,153 | | $ | 29,450 | | 2.43% | | $ | 4,793,149 | | $ | 28,845 | | 2.41% | | $ | 4,691,920 | | $ | 30,922 | | 2.61% Time deposits | | 237,668 | | | 1,751 | | 2.92% | | | 226,525 | | | 1,718 | | 3.04% | | | 200,257 | | | 1,661 | | 3.29% Total interest-bearing deposits | | 5,048,821 | | | 31,201 | | 2.45% | | | 5,019,674 | | | 30,563 | | 2.44% | | | 4,892,177 | | | 32,583 | | 2.64% Borrowings | | 70,146 | | | 618 | | 3.50% | | | 68,705 | | | 543 | | 3.17% | | | 76,500 | | | 555 | | 2.88% Total interest-bearing liabilities | | 5,118,967 | | | 31,819 | | 2.47% | | | 5,088,379 | | | 31,106 | | 2.45% | | | 4,968,677 | | | 33,138 | | 2.65% Non-interest-bearing liabilities: | | | | | | | | | | | | | | | | | Demand and transaction deposits | | 3,453,182 | | | | | | | 3,369,805 | | | | | | | 2,846,392 | | | | Other liabilities | | 83,493 | | | | | | | 62,276 | | | | | | | 65,777 | | | | Total liabilities | | 8,655,642 | | | | | | | 8,520,460 | | | | | | | 7,880,846 | | | | Stockholders' equity | | 841,058 | | | | | | | 818,587 | | | | | | | 760,540 | | | | Total liabilities and stockholders' equity | $ | 9,496,700 | | | | | | $ | 9,339,047 | | | | | | $ | 8,641,386 | | | | | | | | | | | | | | | | | | | | | Net interest income / interest rate spread | | | $ | 87,940 | | 2.67% | | | | $ | 86,057 | | 2.69% | | | | $ | 76,447 | | 2.51% Net interest-earning assets / net interest margin | $ | 4,126,335 | | | | 3.77% | | $ | 4,051,472 | | | | 3.78% | | $ | 3,450,740 | | | | 3.60% | | | | | | | | | | | | | | | | | Total deposits / total cost of deposits | $ | 8,502,003 | | | | 1.46% | | $ | 8,389,479 | | | | 1.46% | | $ | 7,738,569 | | | | 1.67% Total funding / total cost of funds | $ | 8,572,149 | | | | 1.47% | | $ | 8,458,184 | | | | 1.48% | | $ | 7,815,069 | | | | 1.68% | | | | | | | | | | | | | | | | | | | | (1) Includes Federal Home Loan Bank ("FHLB") stock in the average balance, and dividend income on FHLB stock in interest income. (2) Includes prepayment penalty interest income in 3Q2026, 2Q2026, or 3Q2025 of $409, $526, and $47, respectively (in thousands). Net Interest Income Analysis | Nine Months Ended | September 30, 2026 | | September 30, 2025 (In thousands) | Average Balance | Income / Expense | Yield / Rate | | Average Balance | Income / Expense | Yield / Rate | | | | | | | | | | | Interest-earning assets: | | | | | | | | | | | Interest-bearing deposits in banks | $ | 192,624 | | $ | 4,884 | | 3.39% | | $ | 136,017 | | $ | 4,074 | | 4.00% Securities (1) | | 3,707,712 | | | 141,859 | | 5.12% | | | 3,361,685 | | | 128,614 | | 5.12% Resell agreements | | 57,732 | | | 2,536 | | 5.87% | | | 48,681 | | | 2,800 | | 7.69% Total loans, net(2) | | 5,063,599 | | | 196,958 | | 5.20% | | | 4,695,849 | | | 178,887 | | 5.09% Total interest-earning assets | | 9,021,667 | | | 346,237 | | 5.13% | | | 8,242,232 | | | 314,375 | | 5.10% Non-interest-earning assets: | | | | | | | | | | | Cash and due from banks | | 5,005 | | | | | | | 5,950 | | | | Other assets | | 216,473 | | | | | | | 213,110 | | | | Total assets | $ | 9,243,145 | | | | | | $ | 8,461,292 | | | | | | | | | | | | | | | Interest-bearing liabilities: | | | | | | | | | | | Savings, NOW and money market deposits | $ | 4,699,710 | | $ | 85,339 | | 2.43% | | $ | 4,465,754 | | $ | 86,381 | | 2.59% Time deposits | | 224,072 | | | 5,040 | | 3.01% | | | 217,140 | | | 5,712 | | 3.52% Total interest-bearing deposits | | 4,923,782 | | | 90,379 | | 2.45% | | | 4,682,894 | | | 92,093 | | 2.63% Borrowings | | 69,470 | | | 1,705 | | 3.28% | | | 95,315 | | | 2,348 | | 3.29% Total interest-bearing liabilities | | 4,993,252 | | | 92,084 | | 2.47% | | | 4,778,209 | | | 94,441 | | 2.64% Non-interest-bearing liabilities: | | | | | | | | | | | Demand and transaction deposits | | 3,351,733 | | | | | | | 2,880,899 | | | | Other liabilities | | 74,454 | | | | | | | 60,592 | | | | Total liabilities | | 8,419,439 | | | | | | | 7,719,700 | | | | Stockholders' equity | | 823,706 | | | | | | | 741,592 | | | | Total liabilities and stockholders' equity | $ | 9,243,145 | | | | | | $ | 8,461,292 | | | | | | | | | | | | | | | Net interest income / interest rate spread | | | $ | 254,153 | | 2.66% | | | | $ | 219,934 | | 2.46% Net interest-earning assets / net interest margin | $ | 4,028,415 | | | | 3.77% | | $ | 3,464,023 | | | | 3.57% | | | | | | | | | | | Total deposits / total cost of deposits | $ | 8,275,515 | | | | 1.46% | | $ | 7,563,793 | | | | 1.63% Total funding / total cost of funds | $ | 8,344,985 | | | | 1.48% | | $ | 7,659,108 | | | | 1.65% | | | | | | | | | | | | | (1) Includes Federal Home Loan Bank ("FHLB") stock in the average balance, and dividend income on FHLB stock in interest income. (2) Includes prepayment penalty interest income in September YTD 2026 and September YTD 2025 of $984 thousand and $247 thousand, respectively. Deposit Portfolio Composition | Three Months Ended | September 30, 2026 | | June 30, 2026 | | September 30, 2025 (In thousands) | Ending Balance | | Average Balance | | Ending Balance | | Average Balance | | Ending Balance | | Average Balance Non-interest-bearing demand deposit accounts | $ | 3,702,068 | | | $ | 3,453,183 | | | $ | 3,286,325 | | | $ | 3,369,806 | | | $ | 2,911,442 | | | $ | 2,846,392 | NOW accounts | | 177,342 | | | | 179,760 | | | | 183,532 | | | | 177,893 | | | | 175,701 | | | | 173,768 | Money market deposit accounts | | 4,265,422 | | | | 4,307,700 | | | | 4,428,188 | | | | 4,285,511 | | | | 4,140,781 | | | | 4,184,050 | Savings accounts | | 327,366 | | | | 323,692 | | | | 322,508 | | | | 329,744 | | | | 339,219 | | | | 334,102 | Time deposits | | 242,242 | | | | 237,668 | | | | 237,861 | | | | 226,525 | | | | 202,826 | | | | 200,257 | Total deposits | $ | 8,714,440 | | | $ | 8,502,003 | | | $ | 8,458,414 | | | $ | 8,389,479 | | | $ | 7,769,969 | | | $ | 7,738,569 | | | | | | | | | | | | Non-interest-bearing % of total deposits | | 42 | % | | | 41 | % | | | 39 | % | | | 40 | % | | | 37 | % | | | 37 | % | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | Average Rate Paid(1) | | Cost of Funds | | Average Rate Paid(1) | | Cost of Funds | | Average Rate Paid(1) | | Cost of Funds Non-interest bearing demand deposit accounts | 0.00% | | 0.00% | | 0.00% | | 0.00% | | 0.00% | | 0.00% NOW accounts | 0.41% | | 0.43% | | 0.41% | | 0.39% | | 0.52% | | 0.66% Money market deposit accounts | 2.56% | | 2.62% | | 2.58% | | 2.60% | | 2.62% | | 2.80% Savings accounts | 1.04% | | 1.02% | | 1.00% | | 1.03% | | 1.24% | | 1.33% Time deposits | 2.88% | | 2.92% | | 2.90% | | 3.04% | | 3.24% | | 3.29% Total deposits | 1.38% | | 1.46% | | 1.48% | | 1.46% | | 1.55% | | 1.67% | | | | | | | | | | | Interest-bearing deposits | 2.40% | | 2.45% | | 2.42% | | 2.44% | | 2.47% | | 2.64% | | | | | | | | | | | (1) Average rate paid is calculated as the weighted average of spot rates on deposit accounts. Off-balance sheet deposits are excluded from all calculations shown. Asset Quality (In thousands) | September 30, 2026 | | June 30, 2026 | | September 30, 2025 Loans 90 days past due and accruing | $ | — | | $ | 98 | | $ | — Nonaccrual loans held for sale | | 459 | | | 459 | | | 459 Nonaccrual loans - Commercial | | 98,846 | | | 96,030 | | | 15,502 Nonaccrual loans - Retail | | 5,736 | | | 6,103 | | | 7,035 Nonaccrual securities | | 2 | | | 2 | | | 6 Total nonperforming assets | $ | 105,043 | | $ | 102,692 | | $ | 23,002 | | | | | Nonaccrual loans: | | | | | Commercial and industrial | $ | — | | $ | 112 | | $ | 646 Multifamily | | 90,052 | | | 87,115 | | | 2,799 Commercial real estate | | — | | | — | | | 955 Construction and land development | | 8,794 | | | 8,803 | | | 11,102 Total commercial portfolio | | 98,846 | | | 96,030 | | | 15,502 | | | | | Residential real estate lending | | 3,180 | | | 3,525 | | | 3,644 Consumer solar | | 2,432 | | | 2,414 | | | 3,134 Consumer and other | | 124 | | | 164 | | | 257 Total retail portfolio | | 5,736 | | | 6,103 | | | 7,035 Total nonaccrual loans | $ | 104,582 | | $ | 102,133 | | $ | 22,537 | | | | | | | | | | | | | Credit Quality | | September 30, 2026 | | June 30, 2026 | | September 30, 2025 ($ in thousands) | | | | | | Criticized and classified loans | | | | | | Commercial and industrial | | $ | 39,927 | | | $ | 31,952 | | | $ | 48,857 | Multifamily | | | 99,852 | | | | 100,080 | | | | 11,279 | Commercial real estate | | | — | | | | — | | | | 955 | Construction and land development | | | 13,989 | | | | 14,002 | | | | 11,102 | Residential real estate lending | | | 3,180 | | | | 3,525 | | | | 3,644 | Consumer solar | | | 2,432 | | | | 2,414 | | | | 3,134 | Consumer and other | | | 124 | | | | 164 | | | | 257 | Total loans | | $ | 159,504 | | | $ | 152,137 | | | $ | 79,228 | | | | | | | | | | | | | Criticized and classified loans to total loans | | | | | | Commercial and industrial | | | 0.77 | % | | | 0.62 | % | | | 1.02 | % Multifamily | | | 1.92 | % | | | 1.94 | % | | | 0.24 | % Commercial real estate | | | — | % | | | — | % | | | 0.02 | % Construction and land development | | | 0.27 | % | | | 0.27 | % | | | 0.23 | % Residential real estate lending | | | 0.06 | % | | | 0.07 | % | | | 0.08 | % Consumer solar | | | 0.05 | % | | | 0.05 | % | | | 0.07 | % Consumer and other | | | — | % | | | — | % | | | 0.01 | % | | | | | | | | | | | | Total loans | | | 3.07 | % | | | 2.95 | % | | | 1.67 | % | | | | | | | | | | | | | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | Annualized net charge- offs (recoveries) to average loans | | ACL to total portfolio balance | | Annualized net charge- offs (recoveries) to average loans | | ACL to total portfolio balance | | Annualized net charge- offs (recoveries) to average loans | | ACL to total portfolio balance Commercial and industrial | 0.12% | | 0.87% | | 0.06% | | 0.90% | | 2.54% | | 1.03% Multifamily | —% | | 0.98% | | —% | | 0.96% | | —% | | 0.30% Commercial real estate | —% | | 0.40% | | —% | | 0.44% | | —% | | 0.59% Construction and land development | —% | | 0.31% | | —% | | 0.07% | | —% | | 6.72% Residential real estate lending | (0.03)% | | 0.56% | | (0.02)% | | 0.57% | | (0.06)% | | 0.58% Consumer solar | 2.98% | | 10.46% | | 3.91% | | 9.83% | | 2.20% | | 7.94% Consumer and other | 0.48% | | 3.20% | | 0.09% | | 3.29% | | 0.35% | | 3.36% Total loans | 0.20% | | 1.35% | | 0.25% | | 1.34% | | 0.81% | | 1.18% | | | | | | | | | | | | | | | | | | | | | | Reconciliation of GAAP to Non-GAAP Financial Measures The information provided below presents a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure. | As of and for the | | As of and for the | Three Months Ended | | Nine Months Ended (in thousands) | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | September 30, 2026 | | September 30, 2025 Core operating revenue | | | | | | | | | Net Interest Income (GAAP) | $ | 87,940 | | | $ | 86,057 | | | $ | 76,447 | | | $ | 254,153 | | | $ | 219,934 | Non-interest income (GAAP) | | 13,801 | | | | 12,304 | | | | 9,161 | | | | 39,391 | | | | 23,592 | Operating revenue (GAAP) | $ | 101,741 | | | $ | 98,361 | | | $ | 85,608 | | | $ | 293,544 | | | $ | 243,526 | Add: Loss on Sale of Securities and Other Assets | | 427 | | | | 39 | | | | 1,226 | | | | 1,288 | | | | 2,946 | Less: ICS One-Way Sell Fee Income(1) | | (2,924 | ) | | | (2,303 | ) | | | (420 | ) | | | (8,135 | ) | | | (531 | ) Add: Loss and changes in fair value of loans held-for-sale(2) | | — | | | | — | | | | — | | | | — | | | | (837 | ) Less: Subdebt repurchase gain(2) | | (75 | ) | | | — | | | | — | | | | (75 | ) | | | — | Add: Tax depreciation on solar investments(3) | | — | | | | — | | | | — | | | | — | | | | 3,179 | Core operating revenue (non-GAAP) | $ | 99,169 | | | $ | 96,097 | | | $ | 86,414 | | | $ | 286,622 | | | $ | 248,283 | | | | | | | | | | Core non-interest expense | | | | | | | | | Non-interest expense (GAAP) | $ | 48,876 | | | $ | 47,312 | | | $ | 43,617 | | | $ | 142,075 | | | $ | 125,852 | Less: Severance costs(4) | | (53 | ) | | | (80 | ) | | | (260 | ) | | | (755 | ) | | | (527 | ) Core non-interest expense (non-GAAP) | $ | 48,823 | | | $ | 47,232 | | | $ | 43,357 | | | $ | 141,320 | | | $ | 125,325 | | | | | | | | | | Core net income | | | | | | | | | Net Income (GAAP) | $ | 36,434 | | | $ | 34,766 | | | $ | 26,790 | | | $ | 96,424 | | | $ | 77,807 | Add: Loss on Sale of Securities and Other Assets | | 427 | | | | 39 | | | | 1,226 | | | | 1,288 | | | | 2,946 | Less: ICS One-Way Sell Fee Income(1) | | (2,924 | ) | | | (2,303 | ) | | | (420 | ) | | | (8,135 | ) | | | (531 | ) Add: Loss and changes in fair value of loans held-for-sale(2) | | — | | | | — | | | | — | | | | — | | | | (837 | ) Less: Subdebt repurchase gain(2) | | (75 | ) | | | — | | | | — | | | | (75 | ) | | | — | Add: Severance costs(4) | | 53 | | | | 80 | | | | 260 | | | | 755 | | | | 527 | Add: Tax depreciation on solar investments(3) | | — | | | | — | | | | — | | | | — | | | | 3,179 | Add: Tax benefit (expense) on notable items | | 655 | | | | 555 | | | | (296 | ) | | | 1,590 | | | | (1,420 | ) Core net income (non-GAAP) | $ | 34,570 | | | $ | 33,137 | | | $ | 27,560 | | | $ | 91,847 | | | $ | 81,671 | | | | | | | | | | Tangible common equity | | | | | | | | | Stockholders' equity (GAAP) | $ | 833,561 | | | $ | 834,993 | | | $ | 775,573 | | | $ | 833,561 | | | $ | 775,573 | Less: Goodwill | | (12,936 | ) | | | (12,936 | ) | | | (12,936 | ) | | | (12,936 | ) | | | (12,936 | ) Less: Core deposit intangible | | (598 | ) | | | (704 | ) | | | (1,056 | ) | | | (598 | ) | | | (1,056 | ) Tangible common equity (non-GAAP) | $ | 820,027 | | | $ | 821,353 | | | $ | 761,581 | | | $ | 820,027 | | | $ | 761,581 | | | | | | | | | | Average tangible common equity | | | | | | | | | Average stockholders' equity (GAAP) | $ | 841,058 | | | $ | 818,587 | | | $ | 760,540 | | | $ | 823,706 | | | $ | 741,592 | Less: Goodwill | | (12,936 | ) | | | (12,936 | ) | | | (12,936 | ) | | | (12,936 | ) | | | (12,936 | ) Less: Core deposit intangible | | (650 | ) | | | (754 | ) | | | (1,126 | ) | | | (754 | ) | | | (1,269 | ) Average tangible common equity (non-GAAP) | $ | 827,472 | | | $ | 804,897 | | | $ | 746,478 | | | $ | 810,016 | | | $ | 727,387 | | | | | | | | | | | | | | | | | | | | (1) Included in service charges on deposit accounts in the Consolidated Statements of Income (2) Included in changes in fair value of loans held-for-sale in the Consolidated Statements of Income (3) Included in equity method investments income in the Consolidated Statements of Income (4) Included in compensation and employee benefits in the Consolidated Statements of Income View source version on businesswire.com: https://www.businesswire.com/news/home/20261021043352/en/ Contacts Investor Contact: Jamie Lillis Solebury Strategic Communications [email protected] 800-895-4172

For the quarter ended September 2026, Amalgamated Financial (AMAL) reported revenue of $101.74 million, up 18.8% over the same period last year. EPS came in at $1.14, compared to $0.91 in the year-ago quarter. The reported revenue represents a surprise of +2.5% over the Zacks Consensus Estimate of $99.26 million. With the consensus EPS estimate being $1.08, the EPS surprise was +5.56%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Amalgamated Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Average Balance - Total interest-earning assets: $9.25 billion compared to the $9.25 billion average estimate based on two analysts. - Net Interest Margin: 3.8% compared to the 3.8% average estimate based on two analysts. - Efficiency Ratio: 48% versus the two-analyst average estimate of 50.1%. - Equity method investments: $0.23 million compared to the $0.32 million average estimate based on two analysts. - Bank-owned life insurance: $0.66 million compared to the $0.67 million average estimate based on two analysts. - Net Interest Income: $87.94 million compared to the $87.9 million average estimate based on two analysts. - Service charges on deposit accounts: $8.25 million versus the two-analyst average estimate of $5.71 million. - Trust Department fees: $4.28 million compared to the $4.28 million average estimate based on two analysts. - Other income: $0.82 million versus the two-analyst average estimate of $0.39 million. - Non-interest income: $13.8 million compared to the $11.36 million average estimate based on two analysts. View all Key Company Metrics for Amalgamated Financial here>>> Shares of Amalgamated Financial have returned +2.7% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amalgamated Financial Corp. (AMAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, Oct. 22, 2026 - President and Chief Executive Officer - Priscilla Sims Brown - Chief Financial Officer - Jason Darby - Chief Banking Officer - Sam D. Brown Operator: Good morning, ladies and gentlemen, and welcome to the Amalgamated Financial Corporation Third Quarter 26 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. A replay of the call and the accompanying slides are available on our investor Relations website. Please review the forward looking statements and non GAAP disclosures on slide 2. As a reminder, this conference call is being recorded. I would now like to turn the call over to Mr. Jason Darby, chief financial officer. Please go ahead, sir. Jason Darby: Thank you, operator, and good morning, everyone. We appreciate your participation in our earnings call. With me today is Priscilla Sims Brown, our President and Chief Executive Officer. Additionally, Sam D. Brown, our Chief Banking Officer, is here for the Q&A portion of today's call. We will keep our prepared remarks brief to limit repeating details you have already reviewed in the earnings materials. I will now turn the call over to Priscilla. Priscilla Sims Brown: Good morning, everyone, and thank you for joining us. We delivered another strong quarter, and I am very pleased with both our results and the continued progress we are making against our strategy. What stands out to me this quarter is not simply the level of performance but the consistency of our execution and the way the different elements of our strategy are increasingly reinforcing 1 another. Our differentiated deposit franchise continues to provide a strong foundation for the bank. We are putting that funding and our capital to work deliberately. Focusing on opportunities where we believe we can generate attractive risk adjusted returns while serving the customers and communities at the core of our mission. We saw that clearly in the balance sheet this quarter. On balance sheet deposits increased $256 million during the quarter to $8.7 billion while off balance sheet deposits totaled $1.1 billion Very notably, political deposits remained at approximately $2 billion while also moving beyond the peak of the prior presidential election cycle. Growth across our mission aligned segments continue to demonstrate the strength, resiliency, and diversity of our bank. We also maintained approximately $5 billion of cash borrowing capacity and unpledged securities providing substantial liquidity and strategic flexibility. That funding strength allowed us to deploy capital into nice balanced opportunities across the balance sheet, Commercial loans increased approximately $93 million during the quarter, and C-PACE assessments increased approximately $54.2 million At the same time, lower yielding residential mortgages and consumer solar balances declined through planned runoff, allowing us to redeploy that capital into higher performing assets. This is a good example of how we expect to continue converting the strength of our pipeline into attractive deployment opportunities in the quarters ahead. Importantly, our focus remains on the quality and economics of that growth, not simply on adding assets. At the same time, we continue to invest for the future. During the quarter, we advanced several modernization initiatives. We expanded the use of AI enabled tools across the organization and we continued building the technology foundation to support our long term ambition. These investments are designed to simplify how we operate, improve the customer and employee experience, strengthen our control environment, and enable us to support more business without adding complexity at the same pace. Just as importantly, we continued investing in our people. We strengthened their capabilities to better serve our communities and our customers. Taken together, this is the strategy at work. We are putting our differentiated funding base and capital to work more effectively while building the capabilities that allow us to serve our customers better and sustain stronger performance over time. We are focused on creating greater value from the franchise we have built with a discipline in risk management that has always defined how we operate. Our strong balance sheet differentiated deposit franchise, mission driven customer base, and disciplined execution give us the confidence in both where we are today and the opportunity ahead. With that, I will turn the call over to Jason. Jason Darby: Thanks, Priscilla. Last quarter, we discussed harvesting the earnings power of the bank. In this quarter, I will spend some time talking about how that earnings power is showing up in the numbers. The earnings profile of the company continues to strengthen. Core net income increased to a record $34.6 million or $1.14 per diluted share. Net revenue exceeded $100 million for the first time in the bank's history. Net interest income reached a record $87.9 million while maintaining a net interest margin of 3.77%. And core profitability metrics again improved to record levels as core return on average assets increased to 1.44% and core return on average tangible common equity increased to 16.57% Collectively, these results demonstrate both strong and consistent performance. We reached our target balance sheet size of approximately $9.6 billion this quarter by adding $141 million of interest earning assets across the lending, PACE and traditional securities portfolios, 1-off loan portfolios generate $39 million of redeployed cash, And while we believe our balance sheet is well optimized, we are considering ways to accelerate reduction of our consumer solar loan portfolio as we continue pursuing productive revenue generation and future profitability. The scalability of the bank is starting to show. Revenue growth allowed us to continue investments in our technology ecosystem and necessary talent, and also absorb an expected increase in occupancy expense associated with our headquarters move. Our core efficiency ratio remained remarkably stable at approximately 49%, demonstrating the positive operating leverage embedded within the bank and providing a glimpse into the long term value we believe is still ahead of us. Our key takeaway this quarter is that our outlook remains favorable. Credit performance remains stable overall. Pass rated loans continue to represent approximately 97% of the portfolio. Annualized net charge offs declined to 20 basis points. And we continue actively managing the previously discussed multifamily relationship. As another election cycle concludes in Q4, we expect to run a neutral balance sheet. We are comfortable with our liquidity position and ability to limit both NII and margin volatility. With that, we are increasing our net interest income outlook for the year from a high end of $340 million to a range of $341 to $342 million but project modest margin compression in the fourth quarter related to the DDA/IBA deposit remix as the election cycle concludes. For core pretax pre provision earnings, we are raising from the prior high end target $190 million to a new range of $193 to $194 million driven mainly by our strong Q3 performance. In upcoming quarters, you will hear us talk about meaningful growth. And this means growing in a way that strengthens the bank rather than simply enlarging it. Not attempting to become a larger bank for the sake of size. We are building a more productive bank. The objective is to generate stronger earnings, efficient returns, and increasing operating leverage with less inherent structural risk. Said differently, the objective is to derive more value from each incremental dollar of asset growth. We believe the strongest banks are not those that grow the fastest, but those that become more productive That philosophy benefits all our stakeholders by requiring strong financial performance, expansion of our capacity to serve customers, and scale and model for financial success and community impact. Ultimately, the point is, as Amalgam grows, the voice and impact of the mission driven communities we serve grows with us. And we are now ready for questions. Thank you. Operator: We will now be conducting a question-and-answer session. If you would like to ask a question, please press 1 on your telephone keypad. A confirmation tone will indicate your line is in the question-and-answer queue. You may press 2 to remove yourself from the queue. For participants using speaker equipment, you may be necessary to pick up the handset before pressing the star keys. Our first question comes from the line of David Konrad with KBW. Please proceed with your question. David Konrad: Hey. Good morning. Great quarter. Morning. You know, going through the pleasantries there, but I wanted to talk to Jason a little bit about the guide. Maybe run through a little bit of the NII because that seems although the strong quarter is kind of flat next quarter. And then PPNR looks to be down a bit quarter on the quarter. I do not know if that is maybe seasonal fourth quarter expenses. So maybe kind of highlight a little bit more of the guide. Jason Darby: Yeah. No problem. Hey, David. How are you? So the fourth quarter is going to follow the natural cyclicality pattern that Amalgamated has just as election cycles conclude and the NII probably will look very similar to the amount that we had in the third quarter. As a result of really just the mix shifting that is going to happen through the funding base as the larger portion of DDA balances starts to decline to support the election conclusion. So the NII has no real ability to lift from this period unless we decide to grow the balance sheet, which we have indicated we are going to leave a neutral balance sheet, because our main focus is really to serve the liquidity needs and limit any volatility that is rolling through the NII vis a vis borrowings. So that is really the NII guide as a flattening, but I do not think that is going to be trajectory. I think when we start to get out into next year, we will start to see NII lifting again. And we will talk more about that when we get into the guidance issue that we will give at the end of the fourth quarter. But I think this period coming up will be a little bit of pause in the momentum of the growth in revenue and other areas of the bank while we get through the election conclusion. Then on the PPNR side, I think the PPNR largely the growth is fueled by the outperformance that we had in this quarter. We are being modest in our expectations for NII, as I said. I think expenses will be generally close to where we are here in the third quarter, maybe tick up slightly. And on the noninterest income side, I think we had an outsized quarter this quarter just as a result of a valuation adjustment from an equity investment we had. So all things equal, I think that is where we are sitting with the PPNR guide Our hope is we will overperform, but want to give you what we think is the most reasonable expectation. David Konrad: Great. And then and then maybe with the Fed move and we did see 1 in December as well, what are your thoughts on deposit betas given the remix and what you think that will be the next couple of quarters? Jason Darby: Sure. So it is a little too early to tell just on this quarter alone how the deposit betas are behaving just because it happened at such a late period in the end of this quarter and then they are just was not a lot of movement from our pricing. If you look at our average posted rates, it actually ticked slightly down from quarter over quarter. So I do not have a great lens on just what that beta is gonna look like. But if I thought about the historical for amalgamated and the last rising rate cycle, which was the fastest 1 we have had in 50 years or so, the interest bearing deposit beta was just under 40% throughout the entire cycle. So I think the signal from us is that we are going to intend to be competitive on pricing. We are going to move with the market. Typically, we enjoy a lower beta just by natural flow than the market, but that does not mean we are trying to manage to that. And historically, I think we have been better than our beta assumptions I think that is an important thing too. So when we talk about our NII guide, which we will give at the end of the fourth quarter, in January, we typically have very conservative beta assumptions, but usually, we do better than that. And, hopefully, that will give you an indication of how we are thinking about deposit costs going through the cycle and what our betas might look like But absent the beta discussion, I still think you can count on Amalgamated to have a very stable cost of funds trajectory I still believe this is very much an asset yield story. As we get out into 2027 for the opportunity for potential margin expansion to continue. David Konrad: Got it. And then maybe the last question for me. You kind of talked about looking for you know, avenues to further reduce the consumer solar Is there an opportunity? I mean, the PACE product has been kind of a stable growth. Is there an opportunity to accelerate, maybe C-PACE growth rates? In 2027? Jason Darby: I yeah. I am going to ask Sam to comment on that in a moment, but I think that is exactly right. We are looking for ways to optimize our capital to move into PACE as a primary feature. there is other areas where we can deploy, but the consumer solar portfolio, just given the way it is behaving, the way that our CECL model is driving economics both in this quarter and into the future really makes us want to accelerate movement of that portfolio liquidity into a different asset class like PACE? Sam, you can talk about our expectations for growth. Sam D. Brown: Yeah. Obviously, David, we are really excited about what we saw in pace for this quarter with 54 million I think this quarter was benefited from a lot of activity that you know, I want to make sure we are being transparent about what the next quarter will look like. That was a very high mark. That said, we really like PACE for forward reasons because PACE historically has had a really good reaction in rising rate environments. And so, we hope that our opportunities for origination will actually expand here as rates continue to move and feel like that is a win for us. We also saw a lot of great PACE production at both ends of the spectrum, both in large transactions and also in our small dollar program as well. So we are looking at ways we can continue to grow those opportunity sets and expand our origination partners. So we agree with you. We would, you know, love to be doing more and, have that as a very strong target for us in terms of 3 legs of our asset generation stool. Priscilla Sims Brown: I will just underscore that point about the diversification of the PACE program this quarter, not only in terms of size, but also multiple geographies and property types. And I think, you know, a lot depends on regulatory support for clean energy investment. We think that will lend itself to sustainable C-PACE growth. David Konrad: Great. Thank you. I appreciate it. Operator: Thank you. Our next question comes from the line of Steve Moss with Raymond James. Steve Moss: Good morning. Nice quarter. Maybe just following up here in terms of business activity, given the rate volatility, how you guys are thinking about overall loan growth here going forward and wondering if you are seeing impacts from higher rates with regard to multifamily or other commercial borrowers. Sam D. Brown: Yes. Steve, it is Sam. So look, we are obviously making sure we are being responsive to the change out there. For us, rising rate environment, we really look at this across our 3 asset areas. In multifamily, it is really about managing our refinance risk. And making sure that we are managing our credit standards and focusing on lower leverage deals. Because we want to continue that efficient NII growth that we have demonstrated. And we think we have got a really high quality pipeline to do just that. Certainly, looking out, ensuring a long lead time on any maturities that are coming due. You have seen as we put that out what that looks like in 2027 and beyond. In C&I specifically, and in our focus areas, the biggest impact of higher rates have really been to they show up in the form of increased sponsor equity that is needed to get these deals done. And that is because in the C&I transactions, particularly in the energy space, these deals and these projects have to get finished because of the calendars that come from the tax credit expirations in 2027 and in 2030. And so we view that as that is positive for us because, again, the acceleration to bring those projects forward is continuing. And then lastly, I just mentioned on page, I will not repeat myself. But historically, we have seen some tailwind activity on that in a rising rate environment. So you put all that together, we think we have got a diversified pipeline, a high quality pipeline, and it can adapt to what the needs are of the bank as we move forward. Steve Moss: Okay. Great. Appreciate that color there. And maybe just in terms of, you know, on the subject of multifamily, the borrower in DC, kind of curious if you can provide any update with regard to that credit. Jason Darby: Yeah. Steve, this is Jason. How are you? So the relationship that we have disclosed before in the DC area continues to work through a resolution process. Actually, this quarter, we did not really have any activity relative to the potential ability to dispose of any of those assets. Not that we were not working on it, but there was nothing that was recordable I think going forward, there is still an appetite to get something done to move some of those more degraded properties that we previously disclosed as nonaccrual at the end of last year. In some form of a note sale. Where that will end up, I am not exactly sure We are not really ready to move off of our provision forecast. I would still think a $5 million or a $5.5 million number for Q4 from a provision expense perspective is appropriate Hopefully, we will be able to find some resolution there. But the overall discussion has been constructive. The borrower is engaged. And the bank is continuing to look for all areas to preserve value. And we will have more to update as things unfold. Steve Moss: Okay. Appreciate that. And then on the margin here, you know, with higher rates, you guys historically run at a lower beta. That should obviously be, you know, pretty favorable for your margin trends over the next year or so if we stay up here. Just kind of curious, maybe a couple of things. Where are new PACE originations coming on? And you know, just as you think about maturities and repricing here and new loans on the books, you know, kind of how you are thinking about that margin trending beyond the short term compression we will see here in the fourth quarter? Any thoughts just given the shift in the rates in the last 90 days? Jason Darby: Yeah. Yeah. I think Sam pointed out quite nicely that PACE traditionally does pretty well in a higher rate environment just more consumers are in place and the construction projects or the capital projects that offer this additional slice that becomes very advantageous capital placement. For builders that are looking for improvements to projects. And so we think there is a good opportunity to keep building assets in that class as the rate environment potentially continues to rise. Where we brought things on in the quarter was around 7% across the broader PACE portfolio, and I would expect going forward it could be as high as 7.75. We could start approaching an 8 number as you look out into 2027. So the risk adjusted returns in that asset class are phenomenal. it is again why Sam and we have been forecasting or signaling for a while that we intend to move more aggressively into that asset class, not to diminish the impact of any of the other asset classes we have with the bank, but PACE is a particularly compelling opportunity for us. And then I think you are right on the point about the margin in that we will have a little compression probably here in the fourth quarter just as the election concludes and deposits have remixed. But as the DDA balances continue to build throughout 2027, that naturally has a mitigating impact on any rising cost of funds related to deposit beta activity. And the asset yield story still is an area where Amalgamated has a tremendous harvesting opportunity. And so we do not have our guidance ready for 2027, but we feel very comfortable that there should be a good margin expansion opportunity throughout the year as we look into the opportunities that lie ahead for us. Steve Moss: Right. Okay. Great. I appreciate all that color, and I will step back. Thank you very much. Thanks, dude. Operator: Thank you. And our next question comes from the line of Justin Crowley with Piper Sandler. You may proceed with your question. Justin Crowley: Maybe just to, to start with 1 for others. Sam or whomever. You know, it looks like you saw a little bit of the runoff on the political side, deposits side, maybe just a little earlier than the last election cycle. And you are obviously also close to it. So just curious if you would share any insights on what you have seen out of those deposit customers and maybe just any early thoughts. And I know it is tough to predict, just on how you think those flows could trend and then eventually rebuild over the next couple of quarters? Sam D. Brown: Yeah. Hey, Justin. it is Sam. So we were really pleased with the fact that we did end the quarter $2 billion which was flat from the prior quarter, which was the record for us. And then we do disclose in our deck, as you saw, that came down to about 1.7 that we disclosed as of 10/15, which really we want to indicate we are obviously in the spend down phase as we near Election Day here. I think the best kind of color I can give for you is to really look at that trend that we have demonstrated over the track record of how long we have been doing this and the chart, I think it is the right shape. I think that trend makes sense. But I would I would pivot also to just remind you that we are really pleased with the diversification we are seeing in all of our other deposit segments. Between the nonprofit and the labor, we were up about $4 million on the quarter. And that really comes through. And so I think it is all part of a bigger puzzle And we obviously, through all the strategic management we put in place in order to kind of understand what is coming from political runoff and be able to work around that to still deliver strong and efficient NII, we feel good that we have got our arms around it. Jason Darby: And then Justin, maybe I can just add some targets for you. I still in a very good place from an off balance sheet perspective at the end of the quarter as well. Over $1 billion there. So as the deposits are started to run off, we still feel very good about being able to handle the election conclusion without needing a borrowing position. So we are really trying to manage our liquidity from that perspective. But in terms of how it would flow through from a margin, if that is maybe where you are going, the target, at least, that we are looking at would be DDA was about 42% of total deposits at the end of the quarter. Probably going to be somewhere in the 36% range when we get to the end of the fourth quarter. And you can get a sense for the mix shift, obviously, as DDA starts to flow out, that will be replaced by interest bearing off balance sheet deposits, and that changes the funding mix and that changes the margin. So I talked a little bit about the margin compression that will happen here in the fourth quarter. But to Sam's point, the historical trend is a very good measure to look at in terms of how that political balance will rebuild. And we expect DDA will be a growing component of the deposit mix. Throughout 2027, which is giving some of the basis of the cost of funds level from my comments earlier about opportunistic margin expansion in 2027? Justin Crowley: Okay. that is all super helpful. Guess just pivoting a little, just kind of going back to expenses. I know there is a little bloat from double rent. How much of that if you are able to quantify and the timing also of when that eventually falls out of the run rate and know you can probably get more specific on January, but maybe just some broader thoughts on expense levels, as we move out into next year. Jason Darby: Yep. Absolutely. So I think you are gonna see a little bit more of the impact of the double rent plus the building move costs in general. there is restoration costs we have to incur for the previous building that we have exited from. And so that will continue into the fourth quarter. Now we planned for that and I do not expect expenses to spike materially at all from where we are here in the third quarter But as I have said before, I am not also expecting as those expenses run off. For that to be thought of as a reduction in the overall expense run rate. The expenses that runoff will be replaced by deferred costs that have been put on the balance sheet related to technology investment infrastructure, other talent moves that we have been making to continue to augment the staff. So when we think about expenses out into the future, and I do not wanna get too far ahead I do think there is a natural continuation of amalgamated investing in its itself. But I think we will always follow our core constraints, which are typically searching for positive operating leverage making sure that revenues are in fact paying for the expenses that we are incurring so they become investments. And also making sure that core efficiency is start to become thought of as a very important and meaningful measurement for the bank. In terms of what we are doing with the spend itself. And if that gives you indication of how we are thinking about it for next year, hopefully, that will suffice. I am happy to talk a little bit more, answer any further follow-up questions or maybe Priscilla, if you have something you would like to add on that. Priscilla Sims Brown: No. I think you said it very well. Agreed. Justin Crowley: That is helpful. And then maybe just 1 last 1 on buybacks. You know, you got active again this quarter. I know the stocks moved pretty nicely which I am sure you are all happy about. But you continue to also have really strong capital levels generate solid earnings. So, just curious how you are thinking about that as capital return strategy as we look out here? Jason Darby: Sure. it is a component, for sure, of our shareholder return strategy. And obviously, we want to make sure that we are not only focused on capital building from an earnings perspective, so we have an obligation. But at the same time, we are investors in stock to the extent that we always feel it is got more value to go. I do not have a specific program that I am following or signaling with regard to what the buyback activity is. But I think you can recognize we increased the availability of the dividend of the repurchase authorization to $40 million before the beginning of the third quarter. We started utilizing that when the price receded a little bit in connection with the broader market moves. We feel that there is value in the stock. And I think you can generally look at what we did this quarter as an indicator, although I would not say it is going to be an absolute because I am not selling any specific program. I will continue just to buy the stock long as we think there is value to be had. And right now, we believe there is a lot of value left to run in the stock. Justin Crowley: Got it. Thanks so much. I appreciate it. Operator: Thank you. And we have reached the end of the question-and-answer session. Therefore, would like to turn the call back over to Priscilla Sims Brown for closing comments. Priscilla Sims Brown: Thanks for those great questions, and thanks for your comments and notice on the quarter. Before we close, I just want to leave you with a couple of takeaways that I think you have heard loud and clear. Our strategy is working. We think the strength of this quarter reflects the deliberate choices we have made to build a differentiated franchise, deploy our capital with discipline and invest in our people and our capabilities. And that is how we are delivering stronger performance for our shareholders while remaining true to our mission. What is particularly gratifying is that these results reflect the strategy we laid out 5 years ago and that we refined 2 years ago and we are doing what we said we would do, you can increasingly see that execution reflected in our results. So I want to thank and congratulate our board for its leadership and stewardship. I want to thank the entire team for their tremendous partnership and execution. This progress is a direct result of their commitment to the strategy and to our customers, communities and shareholders. We enter the next phase from a position of strength with significant opportunities still ahead of us. I look forward to providing more guidance on that next quarter. Thank you for joining us. Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. Enjoy the rest of your day. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Amalgamated Financial (AMAL) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

- Interested in Amalgamated Financial Corp.? Here are five stocks we like better. - Record Q3 performance: Amalgamated Financial reported core net income of $34.6 million, or $1.14 per diluted share, while net revenue topped $100 million and net interest income reached a record $87.9 million. - Deposits and lending shifted: On-balance-sheet deposits rose to $8.7 billion, while commercial loans and PACE assessments increased as the company reduced lower-yielding residential mortgage and consumer solar balances. Political deposits had begun declining by mid-October, ahead of the expected post-election runoff. - Raised outlook but expects near-term pressure: Management increased its full-year net interest income and core pre-tax, pre-provision earnings forecasts, but expects modest fourth-quarter margin compression as political deposits decline and funding shifts toward interest-bearing accounts. PACE growth, ongoing technology investments and share repurchases remain strategic priorities. Amalgamated Financial (NASDAQ:AMAL) reported record third-quarter core net income of $34.6 million, or $1.14 per diluted share, as net revenue surpassed $100 million for the first time, according to executives on the company's earnings call. Chief Financial Officer Jason Darby said net interest income reached a record $87.9 million while net interest margin held at 3.77%. Core return on average assets rose to 1.44%, and core return on average tangible common equity increased to 16.57%. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over "The earnings profile of the company continues to strengthen," Darby said, adding that the company's core efficiency ratio remained near 49% despite continued spending on technology, talent and costs tied to its headquarters move. President and Chief Executive Officer Priscilla Sims Brown said on-balance-sheet deposits increased by $256 million during the quarter to $8.7 billion, while off-balance-sheet deposits totaled $1.1 billion. Political deposits remained at approximately $2 billion at quarter-end, even as the company moved beyond the peak of the prior presidential election cycle. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? As of Oct. 15, political deposits had declined to about $1.7 billion, Chief Banking Officer Sam Brown said, reflecting the expected spending phase approaching Election Day. Darby said the company expects demand deposit accounts to decline from about 42% of total deposits at the end of the third quarter to roughly 36% by the end of the fourth quarter. The company maintained approximately $5 billion of cash, borrowing capacity and unpledged securities, which CEO Brown said provides substantial liquidity and flexibility. Darby said Amalgamated expects to manage the post-election runoff without needing a borrowing position. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price Commercial loans increased by approximately $93 million during the quarter, while commercial property assessed clean energy, or PACE, assessments increased by $54.2 million. Lower-yielding residential mortgages and consumer solar balances declined through planned runoff, allowing the company to redeploy capital into higher-performing assets. Darby said the company is considering ways to accelerate reductions in its consumer solar loan portfolio, citing the portfolio's performance and the effects of its current expected credit loss, or CECL, model on economics. He identified PACE as a primary destination for redeployed capital, alongside other lending opportunities. - Interest-earning assets increased by $141 million across lending, PACE and traditional securities portfolios. - Runoff loan portfolios generated approximately $39 million of redeployed cash. - PACE originations during the quarter were priced around 7%, Darby said, with potential yields of 7.75% to nearly 8% possible in 2027. Management highlighted PACE as an area of opportunity, though Sam Brown cautioned that the $54 million of quarterly production represented a high mark that benefited from substantial activity. He said the company sees potential to broaden its origination partners and expand both large transactions and its smaller-dollar program. Priscilla Sims Brown said the PACE portfolio diversified during the quarter across transaction sizes, geographies and property types. She added that regulatory support for clean-energy investments could support sustainable fee-based growth. Credit performance remained stable, according to Darby. Pass-rated loans represented approximately 97% of the portfolio, while annualized net charge-offs declined to 20 basis points. The company continues to manage a previously disclosed multifamily relationship in the Washington, D.C., area. Darby said the borrower remains engaged in a constructive resolution process, though no asset disposition was recorded during the third quarter. Amalgamated is still considering a note sale involving certain degraded properties that were previously classified as nonaccrual. Darby said the company was not prepared to change its fourth-quarter provision expense forecast of approximately $5 million to $5.5 million. Amalgamated raised its full-year net interest income outlook to a range of $341 million to $342 million, from a prior high-end forecast of $340 million. It also raised its core pre-tax, pre-provision earnings outlook to $193 million to $194 million, compared with a previous high-end target of $190 million. However, management expects modest net interest margin compression in the fourth quarter as political DDA balances decline and the deposit mix shifts toward interest-bearing off-balance-sheet deposits. Darby said fourth-quarter net interest income is expected to be similar to the third-quarter level as the company maintains a neutral balance sheet through the election cycle. Looking further ahead, Darby said management sees potential for net interest income growth and margin expansion in 2027, driven by asset yields and the anticipated rebuilding of DDA balances. He said the company historically has experienced an interest-bearing deposit beta below 40% through the prior rising-rate cycle, while emphasizing that management intends to remain competitive on deposit pricing. The company expects headquarters transition costs, including double rent, building-move expenses and restoration costs at its prior location, to continue into the fourth quarter. Darby said those costs are not expected to materially spike from third-quarter levels. As those expenses subside, the company expects to continue investing in technology infrastructure and talent rather than reducing its overall expense run rate. Management said it expanded AI-enabled tools during the quarter and continued investments intended to simplify operations, improve customer and employee experiences, strengthen controls and support additional business without a proportional increase in complexity. Darby said share repurchases remain part of Amalgamated's shareholder-return strategy. The company increased its repurchase authorization to $40 million before the third quarter and resumed buying shares when the stock price declined alongside broader market movements. He did not provide a specific repurchase schedule but said management believes the shares retain value. "I'll continue to just buy the stock as long as I think there's value to be had," Darby said. Amalgamated Financial Corporation (NASDAQ:AMAL) is the parent company of Amalgamated Bank, a commercial bank that provides banking, lending and financial services to businesses, nonprofit organizations, labor unions, political organizations and individual consumers. The bank is known for serving mission-driven and socially responsible organizations, as well as customers seeking conventional banking products. Amalgamated Bank offers commercial and consumer deposits, commercial and real estate lending, treasury management, online and mobile banking, payment services, and investment management. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What Amalgamated Financial (AMAL) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

This article first appeared on GuruFocus. - Net Revenue: Exceeded $100 million for the first time in the bank's history. - Core Net Income: Record $34.6 million, or $1.14 per diluted share. - Net Interest Income: Record $87.9 million. - Net Interest Margin: 3.77%. - Core Return on Average Assets: Increased to a record 1.44%. - Core Return on Average Tangible Common Equity: Increased to a record 16.57%. - Core Efficiency Ratio: Stable at approximately 49%. - On-Balance Sheet Deposits: Increased $256 million during the quarter to $87.9 billion. - Off-Balance Sheet Deposits: Totaled $1.1 billion. - Political Deposits: Remained at approximately $2 billion. - Liquidity: Maintained approximately $5 billion of cash, borrowing capacity, and unpledged securities. - Commercial Loans: Increased approximately $93 million during the quarter. - CPACE Assessments: Increased approximately $54.2 million. - Balance Sheet Size: Reached target of approximately $9.6 billion, adding $141 million of interest-earning assets. - Runoff Loan Portfolios: Generated approximately $39 million of redeployed cash. - Credit Quality: Pass-rated loans approximately 97% of portfolio; annualized net charge-offs declined to 20 basis points. - Net Interest Income Outlook: Raised from high end of $340 million to a range of $341 million to $342 million. - Core Pre-Tax-Provision Earnings Outlook: Raised from prior high-end target of $190 million to a new range of $193 million to $194 million. - Warning! GuruFocus has detected 7 Warning Sign with AMAL. - Is AMAL fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Core net income reached a record $34.6 million, or $1.14 per diluted share, with net revenue exceeding $100 million for the first time. - Net interest income hit a record $87.9 million with a net interest margin of 3.77%, and core ROA and ROATCE improved to record levels of 1.44% and 16.57%, respectively. - On-balance sheet deposits increased $256 million to $87.9 billion, with political deposits stable at ~$2 billion and off-balance sheet deposits of $1.1 billion. - Commercial loans grew ~$93 million and CPACE assessments increased ~$54.2 million, while lower-yielding residential mortgages and consumer solar balances declined through planned runoff. - The company raised its full-year net interest income outlook to $341-$342 million and core pre-tax-pre-provision earnings outlook to $193-$194 million, driven by strong Q3 performance. - Net interest income is expected to be flat in Q4 compared to Q3 due to deposit remix as the election cycle concludes, with modest margin compression. - Provision expense for Q4 is guided at $5-$5.5 million, and the multifamily relationship in DC continues to work through resolution with no recorded activity this quarter. - The consumer solar loan portfolio is underperforming, prompting the company to consider accelerating its reduction, which may impact near-term earnings. - Expenses are expected to tick up slightly in Q4 due to double rent and building move costs, with no reduction in the expense run rate as these costs roll off. - Political deposits have started to run off, declining to ~$1.7 billion as of mid-October, which will pressure the margin in Q4 and limit NII growth until they rebuild. Q: David Konrad (KBW) asked about the Q4 guidance, noting that NII appears flat sequentially and pre-tax-pre-provision earnings look down quarter over quarter, and whether that reflects seasonal fourth-quarter expenses.A: CFO Jason Darby explained that Q4 follows Amalgamated's natural cyclicality as election cycles conclude. NII will likely look similar to Q3 as the funding mix shifts and DDA balances decline to support the election conclusion. The bank intends to run a neutral balance sheet to serve liquidity needs and limit NII volatility from borrowings, with NII expected to lift again in 2027. On PPNR, growth is fueled by Q3 outperformance; expenses should be close to Q3 levels (maybe slightly higher), and non-interest income had an outsized quarter due to an equity investment valuation adjustment. He added the bank hopes to overperform but is giving its most reasonable expectation. Q: Justin Crowley (Piper Sandler) asked about the political deposit runoff, which appears to have started a bit earlier than the last election cycle, and how those flows could trend and rebuild over the next couple of quarters.A: Chief Banking Officer Sam Brown said the bank was pleased to end the quarter at $2 billion in political deposits, flat from the prior quarter's record, with about $1.7 billion disclosed as of October 15 as the spend-down phase nears Election Day. He pointed to the historical trend chart as the best guide and highlighted diversification, with nonprofit and labor deposits up about $4 million on the quarter. CFO Jason Darby added that off-balance sheet deposits remain over $1 billion, so the bank can handle the election conclusion without borrowing. DDA was about 42% of total deposits at quarter-end and will likely be around 36% at year-end, replaced by interest-bearing off-balance sheet deposits, driving Q4 margin compression; DDA is expected to grow again throughout 2027, supporting opportunistic margin expansion. Q: Steve Moss (Raymond James) asked about margin trends beyond the short-term Q4 compression, including where new PACE originations are coming on and how maturities and repricing factor in given the rate shift over the last 90 days.A: CFO Jason Darby said PACE traditionally performs well in higher-rate environments because it offers builders an advantageous additional capital slice for projects. PACE came on around 7% in the quarter, and he expects it could reach as high as 7.75% and approach 8% looking into 2027, calling the risk-adjusted returns phenomenal. He expects some Q4 margin compression as the election concludes and deposits remix, but growing DDA balances in 2027 should mitigate rising deposit costs, and the asset yield story offers a tremendous harvesting opportunity. While 2027 guidance isn't ready, he feels very comfortable there should be good margin expansion throughout the year. Q: David Konrad (KBW) asked about deposit betas given the Fed move and the remix, and what to expect over the next couple of quarters.A: CFO Jason Darby said it's too early to tell from this quarter alone since the move came late in the period with little pricing movement; the average posted rate actually ticked slightly down quarter over quarter. He noted the interest-bearing deposit beta was just under 40% through the last rising-rate cycle, the fastest in about 50 years. The bank intends to be competitive and move with the market, typically enjoying a lower beta by natural flow, and historically has done better than its conservative beta assumptions. He said investors can count on a very stable cost of funds trajectory and that this remains very much an asset yield story for potential margin expansion into 2027. Q: Steve Moss (Raymond James) asked for an update on the previously disclosed multifamily borrower in the DC area.A: CFO Jason Darby said the relationship continues to work through a resolution process, with no recordable activity this quarter on disposing of assets, though work continues. There is still appetite to move some of the more degraded properties previously disclosed as nonaccrual at the end of last year via some form of note sale, though the outcome is uncertain. The bank is not ready to move off its provision forecast, with a $5 million to $5.5 million provision expense for Q4 still deemed appropriate. The discussion has been constructive, the borrower is engaged, and the bank continues to look for all areas to preserve value. Q: David Konrad (KBW) asked whether there is an opportunity to accelerate consumer solar reduction and whether PACE growth rates could accelerate in 2027.A: CFO Jason Darby said the bank is looking to optimize capital and move into PACE as a primary feature; the consumer solar portfolio's behavior and CECL-driven economics make accelerating the shift of that liquidity into an asset class like PACE attractive. Chief Banking Officer Sam Brown said the $54 million PACE quarter was a very high mark benefiting from a lot of activity, but the bank likes PACE because it historically reacts well in rising-rate environments, and origination opportunities should expand as rates move. Production was strong at both ends of the spectrum, in large transactions and the small-dollar program, and the bank is looking to expand origination partners. CEO Priscilla Sims Brown underscored the diversification across size, geographies, and property types, adding that regulatory support for clean energy investment would lend itself to sustainable CPACE growth. Q: Steve Moss (Raymond James) asked how the bank is thinking about overall loan growth given rate volatility and whether higher rates are impacting multifamily or other commercial borrowers.A: Chief Banking Officer Sam Brown said the bank is being responsive across its three asset areas. In multifamily, the focus is managing refinance risk, maintaining credit standards, and emphasizing lower-leverage deals to sustain efficient NII growth, with a high-quality pipeline and long lead time on maturities into 2027 and beyond. In C&I and focus areas, higher rates show up as increased sponsor equity needed to close deals, particularly in energy, where projects must be finished due to tax credit expirations in 2027 and 2030, accelerating project timelines. PACE has historically seen tailwind activity in rising-rate environments, and overall the bank has a diversified, high-quality pipeline that can adapt to the bank's needs. Q: Justin Crowley (Piper Sandler) asked about expenses, including quantifying the double rent from the headquarters move and the timing of when it falls out of the run rate, plus broader thoughts on expense levels into next year.A: CFO Jason Darby said the impact of double rent plus building move costs, including restoration costs for the exited building, will continue into Q For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Socially responsible bank Amalgamated Financial (NASDAQ:AMAL) will be reporting earnings this Thursday before the bell. Here's what to look for. Amalgamated Financial beat analysts' revenue expectations last quarter, reporting revenues of $96.1 million, up 16.9% year on year. It was a very strong quarter for the company, with a solid beat of analysts' net interest income estimates and a beat of analysts' EPS estimates. Is Amalgamated Financial a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members. This quarter, the market is expecting Amalgamated Financial's revenue to grow 12.8% year on year, improving from the 6.8% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Amalgamated Financial has missed Wall Street's revenue estimates multiple times over the last two years. Looking at Amalgamated Financial's peers in the regional banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. QCR Holdings's revenues decreased 11.7% year on year, missing analysts' expectations by 8.9%, and Washington Trust Bancorp reported revenues up 15%, topping estimates by 4.1%. Washington Trust Bancorp traded up 4.2% following the results. Read our full analysis of QCR Holdings's results here and Washington Trust Bancorp's results here. Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the regional banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Amalgamated Financial's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $55.33 (compared to the current share price of $47.93). ALSO WORTH WATCHING: Nvidia's Quiet Partner. Nvidia's chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don't make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.