Amalgamated Financial Corp. Reports Third Quarter 2026 Financial Results; Record Earnings and Profitability | 3.77% Margin
NEW YORK--( 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
Deposits and Liquidity
Margin and Assets
Capital and Returns
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 income 1 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 income 1 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 expense 1 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 deposits 1 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 share 1 increased 0.2% to $27.54. Tangible common equity 1 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:
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
June 30, 2026
($ 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
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