AMAL

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, including Amalgamated Financial (NASDAQ:AMAL) and its peers. Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges. The 94 regional banks stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates. In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results. Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals. Amalgamated Financial reported revenues of $96.1 million, up 16.9% year on year. This print exceeded analysts’ expectations by 4.4%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ net interest income and EPS estimates. Priscilla Sims Brown, President and Chief Executive Officer, commented, “This quarter showcases the power of the franchise we have built. With the strongest balance sheet in our history and one of the most differentiated deposit franchises in banking, we are successfully converting balance sheet growth into record earnings, record profitability, and a scalable platform for future performance.” Interestingly, the stock is up 3.8% since reporting and currently trades at $48.76. We think Amalgamated Financial is a good business, but is it a buy today? Read our full report here, it’s free. Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE:OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands. OFG Bancorp reported revenues of $190.3 million, up 4.4% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with a beat of analysts’ EPS and net interest income estimates. The market seems content with the results as the stock is up 4.8% since reporting. It currently trades at $52.38. Is now the time to buy OFG Bancorp? Access our full analysis of the earnings results here, it’s free. Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California (NYSE:BANC) is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals. Banc of California reported revenues of $285.7 million, up 4.7% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share and net interest income estimates. As expected, the stock is down 11.8% since the results and currently trades at $18.68. Read our full analysis of Banc of California’s results here. Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE:FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia. FB Financial reported revenues of $175.9 million, up 27.5% year on year. This print lagged analysts’ expectations by 0.7%. It was a slower quarter as it also logged a miss of analysts’ EPS and tangible book value per share estimates. The stock is up 3.1% since reporting and currently trades at $58.30. Read our full, actionable report on FB Financial here, it’s free. Tracing its roots back to 1927 during the economic boom before the Great Depression, Valley National Bancorp (NASDAQGS:VLY) operates Valley National Bank, providing commercial, consumer, and wealth management banking services across several states. Valley National Bank reported revenues of $562 million, up 13.3% year on year. This number topped analysts’ expectations by 0.7%. Aside from that, it was a slower quarter as it produced EPS in line with analysts’ estimates and a slight miss of analysts’ tangible book value per share estimates. The stock is down 2.9% since reporting and currently trades at $14.11. Read our full, actionable report on Valley National Bank here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Amalgamated Financial delivered a strong second quarter, with results exceeding Wall Street’s expectations and a positive market reaction. Management credited disciplined balance sheet expansion and deposit-led growth for the quarter’s outperformance, emphasizing the impact of investments in technology and operational improvements. CEO Priscilla Sims Brown noted, “We are successfully converting balance sheet growth into record earnings, record profitability, and a scalable platform that bodes well for future top performance.” The company’s differentiated deposit franchise and prudent risk management were highlighted as key contributors to robust earnings and improved operating leverage. Is now the time to buy AMAL? Find out in our full research report (it’s free). Revenue: $93.93 million vs analyst estimates of $92.06 million (14.3% year-on-year growth, 2% beat) Adjusted EPS: $1.10 vs analyst estimates of $1 (10% beat) Market Capitalization: $1.47 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Justin Crowley (Piper Sandler) asked about the balance between loan originations and payoffs, and the sustainability of loan growth. Chief Banking Officer Sam D. Brown emphasized growth across all asset classes and ongoing investments to support origination efforts. Justin Crowley (Piper Sandler) inquired about the impact of nonaccrual loan recoveries on margins. CFO Jason Darby noted the recovery’s positive but non-recurring contribution, and explained that margin trends will moderate in the second half. Justin Crowley (Piper Sandler) sought clarity on expense trends, specifically whether elevated compensation and technology costs would persist. Darby confirmed expenses would rise with ongoing investments, but some one-time costs would subside after the new headquarters move. David Konrad (KBW) asked about normalized net interest margin (NIM) for the company. Darby explained that recent asset growth yields could be indicative of a sustainable NIM in the future, pending 2027 planning. David Konrad (KBW) questioned trends in clean energy demand. Brown highlighted the strong and growing need for renewable financing, citing industry studies and Amalgamated’s focus on financing projects with long-term, contracted revenues. Looking ahead, the StockStory team will be watching (1) the pace of loan growth and the bank’s ability to sustain commercial and clean energy originations, (2) further progress on technology upgrades and adoption of AI-enabled tools to drive efficiency, and (3) the management of deposit flows—especially around the political deposit cycle and off-balance-sheet funds. Execution on these fronts will be crucial to maintaining earnings momentum and scalable growth. Amalgamated Financial currently trades at $49.54, up from $46.96 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Socially responsible bank Amalgamated Financial (NASDAQ:AMAL) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 19.7% year on year to $98.36 million. Its non-GAAP profit of $1.10 per share was 10% above analysts’ consensus estimates. Is now the time to buy AMAL? Find out in our full research report (it’s free). Revenue: $98.36 million vs analyst estimates of $92.06 million (19.7% year-on-year growth, 6.8% beat) Adjusted EPS: $1.10 vs analyst estimates of $1 (10% beat) Market Capitalization: $1.45 billion Amalgamated Financial delivered a strong second quarter, with results exceeding Wall Street’s expectations and a positive market reaction. Management credited disciplined balance sheet expansion and deposit-led growth for the quarter’s outperformance, emphasizing the impact of investments in technology and operational improvements. CEO Priscilla Sims Brown noted, “We are successfully converting balance sheet growth into record earnings, record profitability, and a scalable platform that bodes well for future top performance.” The company’s differentiated deposit franchise and prudent risk management were highlighted as key contributors to robust earnings and improved operating leverage. Looking forward, Amalgamated Financial’s outlook centers on continued balance sheet optimization, further technology upgrades—including expanded use of AI tools—and maintaining rigorous risk management. Management raised full-year guidance based on ongoing momentum in loan growth and deposit gathering, while cautioning that margin expansion may moderate in the back half of the year due to deposit mix shifts. CFO Jason Darby stated, “We continue to invest in scalability and expect technology infrastructure improvements to support efficient and scalable long-term growth.” The company remains focused on leveraging its platform for sustainable earnings growth in the coming years. Management attributed the quarter’s performance to strong commercial loan growth, disciplined asset optimization, and meaningful advances in technology infrastructure. Commercial lending expansion: Amalgamated reported $155 million in growth-mode commercial lending, which management described as a core driver of earnings momentum. The company benefited from positive trends across all asset classes, with commercial production particularly strong in the period. Deposit franchise strength: On-balance-sheet deposits increased by $280 million, reflecting continued success in attracting political, labor, and social sector deposits. Management highlighted this as providing “unparalleled flexibility” in shaping the balance sheet and supporting asset growth. Asset optimization strategy: The team continued to redeploy lower-yielding assets into higher-yielding loans and securities, generating approximately $39 million in additional cash flow for reinvestment. This ongoing asset mix improvement was cited as a key source of revenue growth and operating leverage. Technology and AI investments: Amalgamated advanced its technology modernization efforts, expanding the use of AI-enabled tools and building infrastructure to support future scalability. Management indicated these investments are laying the groundwork for long-term efficiency and growth. Stable credit quality: Credit metrics remained robust, with criticized and classified loan balances declining. The bank’s disciplined risk management approach was emphasized, and management stated that the reserve position appropriately reflects current economic conditions and risk assessments. Amalgamated Financial’s outlook is shaped by disciplined balance sheet management, technology investments, and ongoing deposit growth. Margin trends and deposit mix: Management expects margins to moderate in the coming quarters due to shifts in deposit composition, particularly as off-balance-sheet funds are utilized to support political deposit outflows. The company anticipates stable to modestly increasing net interest income, with possible margin compression in the fourth quarter. Expense trajectory and scalability: Operating expenses are set to rise in the near term as Amalgamated invests in technology, talent, and infrastructure, including a new headquarters. While some expenses are tied to one-time projects, most increases reflect ongoing efforts to build a scalable and efficient platform for future growth. Loan growth outlook: The company projects continued, albeit slower, loan growth in the second half of the year as it maintains discipline in asset deployment. Management sees long-term opportunity in commercial lending and clean energy financing, with ongoing investment in origination capabilities and asset optimization. Looking ahead, the StockStory team will be watching (1) the pace of loan growth and the bank’s ability to sustain commercial and clean energy originations, (2) further progress on technology upgrades and adoption of AI-enabled tools to drive efficiency, and (3) the management of deposit flows—especially around the political deposit cycle and off-balance-sheet funds. Execution on these fronts will be crucial to maintaining earnings momentum and scalable growth. 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Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Amalgamated Financial (AMAL) has drawn fresh attention after reporting second quarter and first half 2026 earnings, along with approving a new share repurchase program and affirming its regular quarterly dividend. See our latest analysis for Amalgamated Financial. The latest earnings, buyback plan, and affirmed dividend come against a backdrop of strong momentum in Amalgamated Financial’s stock, with a 54.79% year to date share price return and a 252.81% five year total shareholder return indicating enthusiasm has been building rather than fading. If Amalgamated Financial’s recent move has you rethinking your watchlist, this could be a good moment to broaden your search and check out 18 top founder-led companies After a rally that has taken Amalgamated Financial close to analyst targets, while some models still point to a much lower intrinsic value, the real tension now is simple: are investors already paying up, or is there still a gap? Compared with Amalgamated Financial’s last close at $49.44, the most widely followed narrative pegs fair value at $46.00. This creates a modest valuation gap that hinges on how the bank executes its growth plans. Read the complete narrative. Curious how this ESG focused, tech heavy growth story translates into that fair value number? Revenue expansion, margin expectations, and future earnings multiples quietly carry most of the weight in this narrative. Result: Fair Value of $46 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Amalgamated Financial’s story can change quickly if credit issues in areas like consumer solar or multifamily loans deepen, or if shifts in the deposit mix raise funding costs. Find out about the key risks to this Amalgamated Financial narrative. While the popular narrative pegs Amalgamated Financial as about 7.5% overvalued at $49.44 versus a $46.00 fair value, our DCF model presents a different perspective, with an estimate of $102.08 per share that points to a wide undervaluation gap. This kind of split between a narrative based price target and a future cash flow view raises a simple question for you as an investor: which set of assumptions feels more realistic for how Amalgamated Financial will perform over time? Look into how the SWS DCF model arrives at its fair value. With Amalgamated Financial drawing both optimism and concern, consider the trade-off for yourself by reviewing the 3 key rewards and 2 important warning signs If Amalgamated Financial has sharpened your focus on quality opportunities, now is the time to widen your search and let structured stock ideas do some of the heavy lifting. Tap into potential mispricings by reviewing companies flagged as 49 high quality undervalued stocks that may offer stronger fundamentals than their current share prices suggest. Prioritize resilience by scanning 79 resilient stocks with low risk scores focused on businesses with sturdier profiles that may help smooth out portfolio swings. Unearth tomorrow's potential standouts by working through the screener containing 19 high quality undiscovered gems before the wider market pays attention. 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]

Deposit Growth of $280 Million | Loan Growth of $115 Million NEW YORK, July 23, 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 second quarter ended June 30, 2026. Priscilla Sims Brown, President and Chief Executive Officer, commented, "This quarter showcases the power of the franchise we have built. With the strongest balance sheet in our history and one of the most differentiated deposit franchises in banking, we are successfully converting balance sheet growth into record earnings, record profitability, and a scalable platform for future performance." Second Quarter 2026 Highlights Profitability and Revenue Record net income of $34.8 million, or $1.15 per diluted share. Record core net income1 of $33.1 million, or $1.10 per diluted share. Net revenue of $98.4 million, or $3.26 per diluted share. Provision expense normalized to $4.4 million following the reserve build recorded in the prior quarter. Deposits and Liquidity On-balance sheet deposits increased $280.3 million, or 3.4%, to $8.5 billion. Off-balance sheet deposits were $1.0 billion. Political deposits increased $211.9 million, or 11.4%, to $2.1 billion, surpassing the peak achieved during the 2024 presidential election cycle. Average cost of deposits at 146 basis points, where non-interest-bearing deposits comprised 39% of total deposits. Cash, borrowing capacity, and unpledged securities totaled $4.8 billion, or 100% of total uninsured deposits. Margin and Assets Net interest margin increased 3 basis points to 3.78%. Net interest income grew $5.9 million, or 7.4%, to $86.1 million. Net loans receivable increased $114.9 million, or 2.3%, to $5.1 billion. Net commercial loans grew $155.1 million, or 4.5%, to $3.6 billion. PACE assessments grew $40.2 million, or 3.1%, to $1.3 billion, including CPACE growth of $31.0 million. Capital and Returns Tangible book value per share1 increased $0.88, or 3.3%, to $27.47. Tier 1 leverage ratio was 9.20% and Common Equity Tier 1 ratio was 14.20%. Tangible common equity1 ratio was 8.74%. Core return on average tangible common equity1 of 16.51% and core return on average assets1 of 1.42%. On June 9, 2026, a new $40 million share repurchase program was approved. Paid dividend of $5.2 million, at $0.17 per share. Second Quarter Earnings Net income was $34.8 million, or $1.15 per diluted share, compared to $25.2 million, or $0.84 per diluted share, for the prior quarter. The $9.6 million increase during the quarter was primarily driven by $9.1 million lower provision for credit losses, and a $5.9 million increase in net interest income. This was partially offset by a $1.4 million increase in non-interest expense, as well as a $1.0 million decrease in non-interest income, which includes a $0.6 million decrease in ICS One-Way Sell fee income from off-balance sheet deposits. There was also a $3.0 million increase in income tax expense. Core net income1 was $33.1 million, or $1.10 per diluted share, compared to $24.1 million, or $0.80 per diluted share for the prior quarter. The table below shows a pre-tax gain of $2.3 million related to non-core income items, $0.1 million of non-core pre-tax expense items, and $0.6 million in tax on notable items were excluded in the calculation of core net income in the second 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. Net interest income was $86.1 million, compared to $80.2 million for the prior quarter. Interest earning asset yields rose 3 basis points to 5.14%. Loan interest income increased $2.5 million and loan yields increased 3 basis points as average loan balances increased $109.4 million, reflecting repricing upside from commercial loan origination. Similarly, interest income on securities increased $5.2 million and securities yields increased 2 basis points as capital was allocated to PACE origination and AFS securities purchases in the quarter. Conversely, expense on total interest-bearing deposits increased $1.9 million as more deposits were brought back on-balance sheet in the quarter, resulting in the average balance of total interest-bearing deposits increasing by $320.7 million. Net interest margin was 3.78%, an increase of 3 basis points from 3.75% in the prior quarter. The increase was primarily due to interest income generated from the origination of higher-yielding commercial loans and newly purchased AFS securities. In addition, interest income recaptured from the payoff of a nonaccrual construction loan and one-time commercial prepayment fees largely offset income lost from loans moved to nonaccrual status in the prior quarter. Income from prepayment penalties had a 3 basis point impact on net interest margin in the current quarter, compared to a non-material impact in the prior quarter. Total cost of deposits remained flat. Provision for credit losses was an expense of $4.4 million, compared to an expense of $13.5 million in the prior quarter. The decrease of $9.1 million was primarily driven by $9.2 million of specific reserves established in the prior quarter on $78.0 million of multifamily loans to a single-borrower after the borrower indicated an expected default. Management continues to evaluate resolution alternatives on these loans, including foreclosure, note sales, or other exit strategies. During the current quarter, reserves on three of these loans that have been on nonaccrual status since the fourth quarter of 2025 were increased by a combined $1.1 million as the loans move closer to resolution. Offsetting this increase in reserves was a release of $1.5 million on a nonaccrual construction loan that was paid off during the quarter. The remaining provision expense in the second quarter was primarily driven by expected consumer charge-offs and additional required reserves from the ACL model calculation. Non-interest income was $12.3 million, compared to $13.3 million in the prior quarter. Excluding all non-core income items noted above, core non-interest income1 was $10.0 million, compared to $11.2 million in the prior quarter. The decrease was primarily related to lower core solar tax equity income due to exiting a solar tax investment in the previous quarter, as well as a discrete benefit from BOLI policies in the prior quarter. Non-interest expense was $47.3 million, an increase of $1.4 million from the prior quarter. Excluding all non-core expense items noted above, core non-interest expense1 was $47.2 million, an increase of $2.0 million from the prior quarter. This was mainly driven by $2.0 million of higher compensation and employee benefit costs consisting of accruals related to increased performance, as well as for the additional payroll period in 2026. In addition, there was an expected $0.8 million increase in technology costs related to implementation of key modernization projects. This was offset by a $0.6 million decrease in occupancy expense, and a $0.7 million decrease in professional fees. Provision for income tax expense was $11.9 million, compared to $8.8 million for the prior quarter. The effective tax rate was 25.4%, compared to 26.0% in the prior quarter. The decrease was primarily the result of the recognition of a $0.5 million tax credit purchased in the quarter. Excluding the purchased tax credit and other discrete tax items, the current quarter tax rate would have been 26.4%. The tax credits are included in the annualized effective tax rate. Balance Sheet Quarterly Summary Total assets expanded to $9.4 billion at June 30, 2026, a $240.6 million, or 3% increase and total average assets were $9.3 billion. Notable changes within individual balance sheet line items include a $81.2 million increase in traditional securities and a $114.9 million increase in net loans receivable, primarily funded by more deposits held on-balance sheet. For liabilities, on-balance sheet deposits increased by $280.3 million and average total deposits increased by $460.7 million, reflecting growth across the labor, social/philanthropy, and political segments. Off-balance sheet deposits decreased by $96.8 million in the quarter. Equity grew by $27.4 million. Total net loans receivable at June 30, 2026 were $5.1 billion, an increase of $114.9 million, or 2.3% for the quarter. The loan balance increase was primarily driven by an $85.1 million increase in multifamily loans, a $56.2 million increase in commercial real estate loans, and a $13.2 million increase in commercial and industrial loans. Portfolios in non-growth mode included a $11.5 million decrease in consumer solar loans, and a $26.5 million decrease in residential loans. Total on-balance sheet deposits at June 30, 2026 were $8.5 billion, an increase of $280.3 million, or 3.4%, 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 $2.1 billion, an increase of $211.9 million during the quarter. Non-interest-bearing deposits represented 40% of average total deposits and 39% 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 $4.8 billion, comprising 57% of on-balance sheet deposits. Nonperforming assets totaled $102.7 million, or 1.09% of period-end total assets at June 30, 2026, an increase of $3.8 million, compared with $98.9 million, or 1.08% of period-end total assets on a linked quarter basis. The increase in nonperforming assets was driven by one $5.3 million New York multifamily loan that was placed on nonaccrual status this quarter. In addition, two small business loans totaling $0.1 million were also placed on nonaccrual status. This was partially offset by the payoff of a $2.3 million legacy non-performing construction loan. During the quarter, criticized or classified loans decreased $9.0 million, largely driven by the upgrade of one $9.1 million commercial and industrial loan. Also, there were payoffs of one $3.3 million commercial real estate loan, one $2.3 million construction loan mentioned above, and two small business loans totaling $0.4 million. Lastly, two additional small business loans totaling $0.2 million were charged off during the quarter. This was partially offset by downgrades on one $6.2 million multifamily loan, and nine small business loans totaling $0.7 million. During the quarter, the allowance for credit losses on loans increased $0.7 million to $68.9 million. The ratio of allowance to total loans was 1.34%, a decrease of 1 basis point from 1.35% in the first quarter of 2026. Capital Quarterly Summary As of June 30, 2026, the Common Equity Tier 1 Capital ratio was 14.20%, the Total Risk-Based Capital ratio was 16.43%, and the Tier 1 Leverage Capital ratio was 9.20%. Stockholders’ equity was $835.0 million, an increase of $27.4 million during the quarter. The increase in stockholders’ equity was primarily driven by $34.8 million of net income for the quarter, offset by an increase of $4.2 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 during the quarter, and $5.2 million in dividends paid at $0.17 per outstanding share. Tangible book value per share1 increased 3.3% to $27.47. Tangible common equity1 increased slightly to 8.74% of tangible assets due to higher quarterly earnings, offset by an increase in average balance sheet size. Conference Call As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its second quarter 2026 results today, July 23, 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. Second 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 13761665. The telephonic replay will be available until July 30, 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/. 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 June 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, 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 exposure from the use of "big data" techniques, machine learning, and artificial intelligence; 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) Consolidated Statements of Financial Condition Select Financial Data Select Financial Data Loan and PACE Assessments Portfolio Composition Net Interest Income Analysis Net Interest Income Analysis Deposit Portfolio Composition Asset Quality Credit Quality 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260722336518/en/ Contacts Investor Contact:Jamie LillisSolebury Strategic [email protected] 800-895-4172

Amalgamated Financial (AMAL) came out with quarterly earnings of $1.1 per share, beating the Zacks Consensus Estimate of $1 per share. This compares to earnings of $0.88 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.00%. A quarter ago, it was expected that this bank would post earnings of $0.95 per share when it actually produced earnings of $0.8, delivering a surprise of -15.79%. 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 $98.36 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.84%. This compares to year-ago revenues of $80.93 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 46.6% since the beginning of the year versus the S&P 500's gain of 9.6%. 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 $94.63 million in revenues for the coming quarter and $3.92 on $373.94 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 18% 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, WhiteHorse Finance (WHF), has yet to report results for the quarter ended June 2026. This lender to small companies is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of -7.1%. The consensus EPS estimate for the quarter has been revised 3.8% lower over the last 30 days to the current level. WhiteHorse Finance's revenues are expected to be $15.22 million, down 19.2% 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 WhiteHorse Finance, Inc. (WHF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Amalgamated Financial Corp.? Here are five stocks we like better. Amalgamated Financial posted record Q2 2026 results, with net income of $34.8 million and core net income of $33.1 million. Management said return on assets topped 1.4% and the core efficiency ratio stayed below 50%, prompting a raise to full-year guidance. Deposits and loans both grew meaningfully during the quarter, with on-balance sheet deposits up $280 million to a record $8.5 billion and total loans rising about $115 million. The bank highlighted strong political, labor, and social/philanthropy deposit growth as well as healthy commercial loan production. Guidance was lifted for 2026 net interest income and core earnings, as the company now expects net interest income of $338 million to $340 million and core pre-tax, pre-provision earnings of $188 million to $190 million. Management said credit remained stable, though expenses are expected to rise in coming quarters due to headquarters relocation, technology, compliance, and staffing investments. Amalgamated Financial (NASDAQ:AMAL) reported what executives described as a record second quarter of 2026, with management citing balance sheet growth, deposit strength and improved operating leverage as key drivers of higher profitability. President and Chief Executive Officer Priscilla Sims Brown said the quarter “showcases the power of the franchise” the company has built, pointing to record net income of $34.8 million and core net income of $33.1 million. She said return on average assets exceeded 1.4%, return on tangible common equity topped 16% and the company’s core efficiency ratio remained below 50%. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Revenue approached $100 million in the quarter, while revenue per share exceeded $3 for the second consecutive quarter, according to Sims Brown. She said the results supported Amalgamated’s decision to raise its full-year 2026 guidance. Management emphasized the company’s deposit franchise as a defining strength in the quarter. Sims Brown said on-balance sheet deposits increased by $280 million, or 3.4%, to a record $8.5 billion. → 3 Photonics Companies Making Quantum Tech Possible The increase included approximately $212 million of growth in political deposits, which rose to $2.1 billion. Labor deposits increased by $30 million, while social and philanthropy deposits rose by $55 million. Off-balance sheet deposits were more than $1 billion. Sims Brown said the company’s deposit-led growth strategy gives the bank flexibility to shape its balance sheet and redeploy liquidity into higher-yielding assets, including loans, PACE assessments and securities. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Total loans increased by approximately $115 million during the quarter, while loans in “growth mode” commercial lending rose by approximately $155 million, or 4.5%, Sims Brown said. Chief Financial Officer Jason Darby said the quarter demonstrated that deposit-led balance sheet expansion is translating into earnings growth through asset optimization. He said Amalgamated added $276 million in commercial loans, PACE assessments and traditional securities at attractive yields, while non-growth loan portfolios generated about $39 million of cash through planned runoff. During the question-and-answer portion of the call, Chief Banking Officer Sam Brown said the company was “really proud” of the loan growth in the quarter, particularly the $155 million in commercial production. He said the bank was positive across its asset classes and was able to redeploy runoff from lower-yielding assets into a more optimized mix. Darby added that Amalgamated continues to expect quarterly net loan growth near the high end of its previously stated 1.5% to 2% sequential range, saying the company expects to be closer to 2% in the third and fourth quarters. Darby said Amalgamated is increasing its full-year 2026 net interest income outlook from a prior high-end target of $333 million to a new range of $338 million to $340 million. The company also raised its core pre-tax, pre-provision earnings outlook from a prior high-end target of $185 million to a new range of $188 million to $190 million. “These are meaningful increases that reflect our confidence in the bank, the momentum we’re seeing across the balance sheet, and our ability to convert growth into earnings and sustainable shareholder value appreciation,” Darby said. Darby said net interest margin benefited in the quarter from the speed at which the bank deployed asset growth. He said some margin and net interest income were pulled forward into the quarter but should remain with the company through the year. He said margin should moderate in the back half of 2026, with possible modest compression in the fourth quarter due to deposit mix shifts related to political deposit outflows. Darby said the company is targeting $9.6 billion of assets, funded through excess liquidity that would typically reside off balance sheet. He said Amalgamated expects to reach that target early in the third quarter. By year-end, he said, the company’s goal is to have off-balance sheet deposits near zero and little to no debt or leverage, depending on the timing of political deposit outflows. Darby said overall credit performance was stable in the quarter. Provision expense normalized after reserve actions taken in the prior quarter, criticized classified balances declined by approximately $9 million and pass-rated loans represented about 97% of the total portfolio. He said the bank remains actively engaged in managing a previously discussed multifamily relationship and continues to believe its reserve position appropriately reflects current conditions and risk assessments. On expenses, Darby said Amalgamated expects costs to rise in the third and fourth quarters, with approximately $49 million of expenses in each period as a benchmark. He said that would push total expense guidance from the previously discussed $188 million to around $190 million. Darby said third-quarter expense growth will include planned costs tied to the company’s move from its existing headquarters into a new facility. In the fourth quarter, he said those costs will not recur, but the company expects layered expenses related to technology infrastructure, back-office risk and compliance, and compensation. Sims Brown said Amalgamated remains focused on investing in its future while maintaining operating discipline. She said investments in technology, modernization, talent and infrastructure are intended to support scalability and efficiency over time. Executives also pointed to technology investment as part of the company’s long-term strategy. Sims Brown said Amalgamated is expanding its use of AI-enabled tools and building technology infrastructure to support efficient and scalable growth. Darby said the bank plans to update investors in future quarters on AI adoption, utilization and “agentification” as it works toward scalable efficiency. Asked about clean energy demand, Sam Brown said demand continues to increase and that Amalgamated’s role in financing that demand remains strong. He cited a Deloitte study that estimated a need for 30 to 66 gigawatts of renewable power generation by 2030 and said the broader need is estimated at about 225 gigawatts, excluding capacity already identified for retirement. Brown said renewables and storage maintain a cost advantage over gas and that the country cannot meet demand without multiple energy sources. He said Amalgamated will remain careful in selecting assets, focusing on long-term contracted revenues, investment-grade counterparties and fixed-rate amortizing debt. In closing remarks, Sims Brown said the company is “exceptionally well-positioned,” citing its balance sheet, deposit franchise, improving profitability and strategy for scaling through investments in people, technology and AI-enabled capabilities. Amalgamated Financial Corp. (NASDAQ: AMAL) is the bank holding company for Amalgamated Bank, a fully insured commercial bank with a historic mission of serving labor unions, progressive non-profits and mission-driven organizations. Founded in 1923 by the Amalgamated Clothing Workers of America, Amalgamated Bank has grown into a national institution offering a broad suite of banking services, including deposit accounts, commercial and consumer lending, cash management, and treasury solutions tailored to organizations with social responsibility or union affiliations. In addition to core banking, Amalgamated Financial provides wealth management and trust services, retirement plan consulting and impact investing strategies. 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 "Amalgamated Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

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. Management is successfully converting a record $8.5 billion on-balance sheet deposit base into record net income of $34.8 million, driven by a highly differentiated funding model. The bank is executing an 'asset optimization' strategy, redeploying $39 million from lower-yielding non-growth loan runoff into higher-yielding commercial loans and PACE assessments. Profitability metrics reached historic highs with return on average assets exceeding 1.4% and return on tangible common equity surpassing 16%. Operating leverage is improving as the core efficiency ratio remained below 50%, demonstrating the scalability of the platform following multi-year investments in infrastructure. Deposit growth of $280 million was led by the political sector, which increased by approximately $212 million to reach a total of $2.1 billion. The bank is prioritizing 'harvesting' earnings power over growth for growth's sake, focusing on disciplined risk management with 97% of loans maintaining a pass rating. Full-year 2026 guidance was raised for net interest income to a range of $338 million to $340 million, reflecting confidence in balance sheet momentum. Management anticipates a 'flattish' average balance sheet in the second half of 2026 to manage inevitable political deposit outflows during the election cycle without requiring leverage. Net loan growth is projected to be at the high end of the 1.5% to 2% range for the third and fourth quarters of 2026. The bank views 2027 as the 'restarting of the growth engine,' where the deposit base is expected to rebuild as the next presidential election cycle begins. Strategic investments in AI-enabled tools and agentification are expected to drive future efficiency and support the transition toward a $10 billion asset threshold. A non-accrual recovery in the quarter provided a 3 basis point benefit to the margin, which was largely offset by prepayment penalties. Operating expenses are expected to rise to approximately $49 million per quarter in the second half of 2026 due to a planned headquarters relocation and technology layering. Criticized and classified balances declined by approximately $9 million, though management remains actively engaged in managing one specific multi-relationship credit. The bank is targeting a total asset level of $9.6 billion by the third quarter, funded through excess liquidity currently residing off-balance sheet. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Commercial lending grew by $155 million or 4.5%, offsetting planned runoff in non-growth portfolios. Management expects to hit the high end of their 1.5% to 2% quarterly growth target for the remainder of the year. Margin is expected to moderate or face compression in Q4 2026 as off-balance sheet deposits are pulled back on-shore to cover political outflows. Management noted that current asset turnover yields are around 5.7% to 6%, suggesting a sustainable long-term yield profile. Total expense guidance was raised to $190 million to account for relocation costs and back-office risk and compliance infrastructure. Management clarified that $10 billion-readiness investments have been ongoing for years and are not a sudden driver of current spending. Demand for renewable power remains strong due to a significant national production gap and cost advantages over gas. The bank will remain selective, focusing on assets with long-term contracted revenues and investment-grade counterparties.

This article first appeared on GuruFocus. Net Income: Record net income of $34.8 million. Core Net Income: $33.1 million. Return on Average Assets: Exceeded 1.4%. Return on Tangible Common Equity: Exceeded 16%. Core Efficiency Ratio: Below 50%. Revenue: Approximately $98 million. Revenue Per Share: $3.18. On-Balance Sheet Deposits: Increased by $280 million to $8.5 billion. Political Deposits: Increased by $212 million to $2.1 billion. Total Loans: Increased by $115 million. Commercial Lending Growth: Increased by $155 million, or 4.5%. Net Interest Income Outlook: Increased to a range of $338 to $340 million. Core Pre-Tax Pre-Provision Earnings Outlook: Increased to a range of $188 to $190 million. Warning! GuruFocus has detected 7 Warning Sign with AMAL. Is AMAL fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Amalgamated Financial Corp (NASDAQ:AMAL) reported record net income of $34.8 million and core net income of $33.1 million, showcasing strong profitability. The company's return on average assets exceeded 1.4%, and return on tangible common equity surpassed 16%, indicating robust financial performance. On-balance sheet deposits increased by $280 million, reaching a record $8.5 billion, highlighting the strength of their deposit-gathering franchise. Total loans grew by approximately $115 million, with commercial lending increasing by $155 million, demonstrating effective asset optimization. Amalgamated Financial Corp (NASDAQ:AMAL) raised its full-year 2026 guidance, reflecting confidence in continued growth and earnings potential. There may be potential margin compression in the fourth quarter due to mixed shifts in deposits and political deposit outflows. Expenses are expected to increase in Q3 and Q4, with a target of $49 million per quarter, impacting overall cost management. The company anticipates modest growth in average balance sheet size, with potential volatility due to election cycle deposit outflows. Non-accrual recovery had a limited impact on the margin, indicating reliance on external factors for margin improvement. The company is preparing for potential challenges related to scaling and technology investments, which may affect short-term financials. Q: Can you discuss the impressive loan growth this quarter and your expectations for the trend in the coming quarters? A: Sam Brown, Chief Banking Officer, highlighted the $115 million loan growth, with $155 million from commercial production. The bank is optimizing asset mix by redeploying $39 million from lower-yielding assets. They expect to maintain a 1.5% to 2% net loan growth, leaning towards 2% for Q3 and Q4, with continued investments supporting origination efforts. Q: How did non-accrual recovery impact the margin, and what is the margin trajectory for the rest of the year? A: Jason Darby, CFO, noted the non-accrual recovery impact was about three basis points, similar to prepayment penalties. The margin is expected to moderate in the latter half of the year due to disciplined balance sheet management, with potential modest compression in Q4 due to deposit shifts. The focus is on stable NII with a modest upward trajectory. Q: How should we think about the balance sheet impact as you manage off-balance sheet sources towards year-end? A: The target is $9.6 billion in assets, funded through excess liquidity, with minimal off-balance sheet deposits and leverage by year-end. The average balance sheet should remain flat, with slight growth under 1% in Q3 and Q4, anticipating deposit outflows during the election cycle. Q: What is the outlook for expenses, particularly regarding compensation and technology costs? A: Expenses are expected to grow, targeting $49 million in Q3 and Q4. There will be a shift from one-time to recurring expenses, including costs related to moving to a new headquarters. Investments in technology and infrastructure are aimed at scalability and efficiency, supporting future growth. Q: How is the demand for clean energy financing evolving, and what is Amalgamated's role in this sector? A: Sam Brown emphasized the increasing demand for clean energy, with significant opportunities in renewable power generation. Amalgamated is focused on financing long-term contracted revenues with investment-grade counterparties, seeing a strong runway for growth in this sector. For the complete transcript of the earnings call, please refer to the full earnings call transcript.