AMAL · Amalgamated Financial Corp.

Amalgamated Financial Corp. reported first quarter 2026 net income of $25.2 million ($0.84 diluted EPS), down from $26.6 million ($0.88) in the prior quarter, primarily due to an $8.0 million increase in provision for credit losses. The provision included a $9.2 million incremental reserve build tied to a single-borrower multifamily relationship that moved to nonaccrual, which management described as an isolated event. Excluding this, provision expense was $4.2 million, in line with previous quarters. Net revenue grew to $93.4 million from $85.2 million, driven by a $2.3 million increase in net interest income and a $6.0 million increase in non-interest income (which included a $3.8 million loss on a pool sale of residential loans in the prior quarter). Net interest margin expanded 9 basis points to 3.75%, benefiting from higher-yielding commercial loan originations and a 5 basis point decline in average cost of deposits to 146 basis points. On-balance sheet deposits increased $228.9 million to $8.2 billion, with political deposits up $132.9 million. Nonperforming assets rose to $99.3 million (1.08% of assets) from $28.7 million, driven by the $67.7 million multifamily loan downgrade. The allowance for credit losses on loans increased to $68.2 million (1.35% of total loans). Capital ratios remained strong with Tier 1 leverage at 9.33% and Common Equity Tier 1 at 14.20%. Tangible book value per share increased 1.6% to $26.59. The company repurchased approximately 80,000 shares during the quarter and paid a $0.17 per share dividend. Management expressed confidence in the balance sheet and purpose-driven model, noting strong deposit growth and margin expansion despite the isolated credit event.