Amalgamated Financial Corp.

The company reported record net income of $34.8 million and core net income of $33.1 million. Revenue approached $98 million, revenue per share was $3.18, and the core efficiency ratio was 49.15%; management also said ROA exceeded 1.4% and ROTCE exceeded 16%. On the balance sheet, deposits increased $280 million, or 3.4%, to a record $8.5 billion, total loans rose about $115 million, and commercial lending increased about $155 million, or 4.5%. Management said provision expense normalized after prior-quarter reserve actions, criticized and classified balances declined by about $9 million, and pass-rated loans represented approximately 97% of the portfolio. Full-year 2026 guidance was raised: net interest income to $338 million-$340 million from a prior high-end target of $333 million, and core pretax pre-provision earnings to $188 million-$190 million from a prior high-end target of $185 million.

Priscilla Sims Brown framed the quarter as proof that the bank is turning prior investments into earnings power, profitability, and operating leverage. She emphasized the strength of the deposit franchise, the record balance sheet, and continued discipline on capital, liquidity, and credit. Her tone was confident and forward-looking, repeatedly stressing that the bank is building a scalable platform through technology, AI-enabled tools, and modernization.

Jason Darby focused on “harvesting the earnings power of the bank,” saying the team has built a better bank through stronger capital, balance sheet repositioning, and technology investment. He cited revenue of about $98 million, revenue per share of $3.18, and a 49.15% core efficiency ratio, then pointed to approximately $461 million of average deposit growth and $276 million of commercial loans, PACE assessments, and traditional securities added at attractive yields, partially offset by about $39 million of redeployed cash from planned runoff. He said expenses should rise in Q3 and Q4, with $49 million as a general benchmark for each quarter, and that 2026 guidance was raised because of stronger-than-expected earnings power. He also said the company targets $9.6 billion of assets by early Q3 and expects average balance sheet growth to be flattish in the back half of the year as it prepares for political deposit outflows.

Analysts focused on loan growth, margin trajectory, average balance sheet shape, and expense run-rate. Management said Q3 and Q4 loan growth should be closer to 2% sequentially, margin should moderate somewhat in the back half of the year, and there could be modest fourth-quarter compression tied to political deposit mix shifts and off-balance-sheet funds coming back on balance sheet. On expenses, Jason Darby said Q3 should include a one-time office move cost, while later quarters will still carry layered technology, risk/compliance, and compensation expense; Priscilla Sims Brown added that the spending is about investing in scalability, not gearing up specifically for a $10 billion threshold. In a separate question, management said clean energy demand remains strong and the opportunity set looks wide open, though they remain selective on contracted cash flows, investment-grade counterparties, and fixed-rate amortizing debt.