Amalgamated Financial Q2 Earnings Call Highlights

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 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%. 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. 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.

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 q...