Amalgamated Financial Corp. Reports First Quarter 2026 Financial Results; Margin Rises to 3.75% | Revenue Growth of 9.7%

Amalgamated Financial Corp. Reports First Quarter 2026 Financial Results; Margin Rises to 3.75% | Revenue Growth of 9.7% | Guidance Raised 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 first quarter ended March 31, 2026.

Priscilla Sims Brown, President and Chief Executive Officer, commented, “Overall, we delivered a very strong first quarter that underscores the strength of our balance sheet and purpose-driven model. We grew net revenue to $93.4 million, expanded net interest margin 9 basis points to 3.75%, increased on-balance sheet deposits to $8.2 billion, and maintained strong Tier 1 capital at above 9.3%. Included in our results was an incremental $9.2 million provision tied to a single-borrower multifamily relationship that moved to nonaccrual during the quarter. We believe the underlying collateral supports our position and we are aggressively pursuing resolution options to preserve and maximize value. We view this as an isolated event with one borrower, which does not change our performance outlook. With the momentum we saw in the quarter, we are focused on executing and delivering on our revenue and earnings targets over the balance of the year.”

First Quarter 2026 Highlights (on a linked quarter basis)

Deposits and Liquidity

Margin and Assets

Capital and Returns

First Quarter Earnings

Net income was $25.2 million, or $0.84 per diluted share, compared to $26.6 million, or $0.88 per diluted share, for the prior quarter. The $1.4 million decrease during the quarter was primarily driven by a $8.0 million increase in provision for credit losses and a $2.2 million increase in income tax expense. This was partially offset by a $6.0 million increase in non-interest income, which includes a $3.8 million loss on a pool sale of low-yielding performing residential loans in the prior quarter, as well as a $1.0 million increase in ICS One Way Sell fee income from off-balance sheet deposits. There was also a $2.3 million increase in net interest income, and a $0.5 million decrease in non-interest expense.

Core net income 1 was $24.1 million, or $0.80 per diluted share, compared to $30.0 million, or $0.99 per diluted share for the prior quarter. The table below shows a pre-tax gain of $2.1 million related to non-core income items, $0.6 million of non-core pre-tax expense items, and $0.4 million in tax on notable items were excluded in the calculation of core net income in the first 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 millions)

As of and for the Three Months Ended

Core net income

March 31, 2026

December 31, 2025

QoQ Change

Net Income (GAAP)

25.2

26.6

(1.4

)

Add: Non-core (income)/losses

(2.1

)

2.7

(4.8

)

Add: Non-core expense

0.6

1.4

(0.8

)

Less: Tax on notable items

0.4

(0.8

)

1.2

Core net income (non-GAAP)

24.1

30.0

(5.8

)

Net interest income was $80.2 million, compared to $77.9 million for the prior quarter. Despite a full-quarter impact from the December Federal Reserve rate cut, interest earning asset yields rose 4 basis points to 5.11%. Loan interest income increased $1.7 million and loan yields increased 7 basis points as average loan balances increased $177.9 million, reflecting repricing upside from strong commercial loan origination. Similarly, although interest income on securities decreased $0.5 million, reflecting two less days in the quarter, securities yields increased 5 basis points on essentially flat average balances as cash was redeployed into higher yielding securities. Expense on total interest-bearing deposits decreased $0.8 million even as the average balance of total interest-bearing deposits increased $31.0 million.

Net interest margin was 3.75%, an increase of 9 basis points from 3.66% in the prior quarter. The increase was primarily due to interest income generated from the origination of higher-yielding commercial loans, as well as a notable 104 basis point improvement in the ratio of average non-interest bearing to interest-bearing deposits to 40.7%, as well as decreases in total deposit costs mentioned above. Additionally, income from prepayment penalties had no significant impact on net interest margin in the current quarter, compared to a 4 basis point impact in the prior quarter.

Provision for credit losses was an expense of $13.5 million, compared to an expense of $5.5 million in the prior quarter. Provision expense increased by $8.0 million, driven by $9.2 million of specific reserves established or increased on $78.0 million of multifamily loans to a single-borrower after the borrower indicated an expected default. As a result, these loans were placed on nonaccrual status, including $67.7 million moved to nonaccrual during the quarter and $10.3 million that had been on nonaccrual since the prior quarter.

Specific reserves were established across the relationship at varying levels based on loan-level assessments, including consideration of collateral support reflected in third-party appraisals, occupancy, and in-place cash flows. Management is evaluating resolution alternatives, which may include foreclosure, note sales, or other exit strategies. While the Bank has not historically taken title to foreclosed properties, it is prepared to do so if necessary and will engage an experienced third-party property manager to preserve and maximize value prior to disposition.

Excluding the provision increase discussed above, the provision expense would have been $4.2 million primarily driven by expected consumer charge-offs and adding a specific reserve on a multifamily loan that moved to nonaccrual status during the quarter, offset by credit loss releases due to lower required reserves on C&I and consumer loans.

Non-interest income was $13.3 million, compared to $7.3 million in the prior quarter. Excluding all non-core income items noted above, core non-interest income 1 was $11.2 million, compared to $10.1 million in the prior quarter. The increase was primarily related to higher commercial banking fees and discrete benefit from BOLI policies.

Non-interest expense was $45.9 million, a decrease of $0.5 million from the prior quarter, primarily as a result of lower severance costs. Core non-interest expense 1 was $45.3 million, an increase of $0.3 million from the prior quarter. This was mainly driven by a $1.0 million increase in occupancy expense related to branch renovation and relocation and an $0.8 million increase in professional fees, offset by a $0.8 million decrease in advertising expense and lower compensation costs.

Provision for income tax expense was $8.8 million, compared to $6.6 million for the prior quarter. The effective tax rate was 26.0%, compared to 19.9% in the prior quarter. The increase was primarily the result of the recognition of a $1.5 million tax credit in the prior quarter due to the timing of a solar tax equity investment, which also resulted in a tax expense recapture of $1.0 million due to a lower annual effective tax rate for the prior year. Excluding this tax expense recapture and other discrete items, the Q4 2025 tax rate would have been 26.6%. The tax credits are included in the annualized effective tax rate.

Balance Sheet Quarterly Summary

Total assets expanded to $9.2 billion at March 31, 2026, a $301.1 million, or 3% increase and total average assets were $8.9 billion. Notable changes within individual balance sheet line items include a $337.8 million increase in traditional securities and a $65.5 million increase in net loans receivable, primarily funded by more deposits held on-balance sheet. For liabilities, on-balance sheet deposits increased by $228.8 million and average total deposits increased by $187.7 million, reflecting growth across the labor, not-for-profit, and political segments. Off-balance sheet deposits increased by $71.9 million in the quarter. Equity grew by $13.1 million.

Total net loans receivable at March 31, 2026 were $5.0 billion, an increase of $65.5 million, or 1.3% for the quarter. The balance increase in loans was primarily driven by a $132.7 million increase in multifamily loans and a $16.7 million increase in commercial real estate loans, offset by a $40.9 million decrease in commercial and industrial loans. Portfolios in non-growth mode had a $10.1 million decrease in consumer solar loans, and an $11.8 million decrease in residential loans.

Total on-balance sheet deposits at March 31, 2026 were $8.2 billion, an increase of $228.9 million, or 2.9%, 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 $1.9 billion, an increase of $132.9 million during the quarter. Non-interest-bearing deposits represented 41% of average total deposits and 41% 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 $4.8 billion, had a weighted average life of 16 years. Total uninsured deposits were $4.8 billion, comprising 58% of on-balance sheet deposits.

Nonperforming assets totaled $99.3 million, or 1.08% of period-end total assets at March 31, 2026, an increase of $70.6 million, compared with $28.7 million, or 0.32% of period-end total assets on a linked quarter basis. The increase in nonperforming assets was driven by the downgrade of $71.5 million multifamily loans that were placed on nonaccrual status this quarter, primarily from the previously discussed $67.7 million multifamily loans attributable to one borrower. This was partially offset by a $0.5 million commercial and industrial non-performing loan charge-off.

During the quarter, criticized or classified loans increased $51.6 million, largely driven by downgrades on a subset of four multifamily loans totaling $41.5 million from the previously-discussed multifamily loans attributable to one borrower. Additionally, three multifamily loans totaling $7.4 million and one commercial real estate loan totaling $3.3 million were also downgraded. This was offset by the above-mentioned charge-offs.

During the quarter, the allowance for credit losses on loans increased $10.6 million to $68.2 million. The ratio of allowance to total loans was 1.35%, an increase of 19 basis points from 1.16% in the fourth quarter of 2025.

Capital Quarterly Summary

As of March 31, 2026, the Common Equity Tier 1 Capital ratio was 14.20%, the Total Risk-Based Capital ratio was 16.50%, and the Tier 1 Leverage Capital ratio was 9.33%. Stockholders’ equity was $807.6 million, an increase of $13.1 million during the quarter. The increase in stockholders’ equity was primarily driven by $25.2 million of net income for the quarter, offset by an increase of a $4.5 million in accumulated other comprehensive loss due to the tax-effected mark-to-market adjustment on available for sale securities resulting from movement in long-term rates during the quarter, $2.8 million in share buybacks and $5.2 million in dividends paid at $0.17 per outstanding share.

Tangible book value per share 1 increased 1.6% to $26.59. Tangible common equity 1 declined slightly to 8.67% of tangible assets due to the balance sheet size and lower quarterly earnings.

Conference Call

As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its first quarter 2026 results today, April 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. First 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 13759589. The telephonic replay will be available until April 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 March 31, 2026, versus certain periods in 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:

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

March 31,

December 31,

March 31,

($ in thousands)

2026

2025

INTEREST AND DIVIDEND INCOME

(unaudited)

Loans

63,471

61,730

57,843

Securities

44,189

44,858

41,653

Interest-bearing deposits in banks

1,653

1,267

1,194

Total interest and dividend income

109,313

107,855

100,690

INTEREST EXPENSE

Deposits

28,614

29,461

28,917

Borrowed funds

543

1,196

Total interest expense

29,157

30,004

30,113

NET INTEREST INCOME

80,156

77,851

70,577

Provision for credit losses

13,488

5,536

596

Net interest income after provision for credit losses

66,668

72,315

69,981

NON-INTEREST INCOME

Trust Department fees

4,306

4,143

4,191

Service charges on deposit accounts

7,204

5,931

3,438

Bank-owned life insurance income

1,322

652

626

Losses on sale of securities and other assets, net

(822

)

(485

)

(680

)

Gain (loss) on sale of loans and changes in fair value on loans held-for-sale, net

(3,640

)

832

Equity method investments income (loss)

624

127

(2,508

)

Other income

640

620

507

Total non-interest income

13,286

7,348

6,406

NON-INTEREST EXPENSE

Compensation and employee benefits

25,750

26,542

23,314

Occupancy and depreciation

4,155

3,165

3,293

Professional fees

3,736

2,892

4,739

Technology

6,618

6,991

5,619

Office maintenance and depreciation

550

363

629

Amortization of intangible assets

105

144

Advertising and promotion

605

1,394

Federal deposit insurance premiums

1,005

975

900

Other expense

3,364

3,930

2,961

Total non-interest expense

45,888

46,396

41,650

Income before income taxes

34,066

33,267

34,737

Income tax expense

8,843

6,628

9,709

Net income

25,223

26,639

25,028

Earnings per common share - basic

0.85

0.89

0.82

Earnings per common share - diluted

0.84

0.88

0.81

Consolidated Statements of Financial Condition

($ in thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Assets

(unaudited)

Cash and due from banks

11,617

4,501

4,196

Interest-bearing deposits in banks

168,111

286,716

61,518

Total cash and cash equivalents

179,728

291,217

65,714

Securities:

Available for sale, at fair value

Traditional securities

1,928,067

1,580,049

1,546,127

Property Assessed Clean Energy (“PACE”) assessments

215,198

203,502

161,147

2,143,265

1,783,551

1,707,274

Held-to-maturity, at amortized cost:

Traditional securities, net of allowance for credit losses of $40, and $41, and $47, respectively

466,741

476,950

535,063

PACE assessments, net of allowance for credit losses of $709, $703, and $654, respectively

1,081,119

1,077,065

1,038,054

1,547,860

1,554,015

1,573,117

Loans held for sale

459

2,814

3,667

Loans receivable, net of deferred loan origination fees and costs

5,033,358

4,957,273

4,677,506

Allowance for credit losses

(68,155

)

(57,586

)

(57,676

)

Loans receivable, net

4,965,203

4,899,687

4,619,830

Resell agreements

66,134

48,662

41,651

Federal Home Loan Bank of New York ("FHLBNY") stock, at cost

5,009

4,679

Accrued interest receivable

56,248

65,128

55,092

Premises and equipment, net

10,107

4,685

7,366

Bank-owned life insurance

107,802

108,941

108,652

Right-of-use lease asset

9,413

9,602

12,477

Deferred tax asset, net

31,336

30,750

33,799

Goodwill

12,936

Intangible assets, net

808

913

1,343

Equity method investments

5,578

7,979

5,639

Other assets

29,006

43,947

31,991

Total assets

9,170,892

8,869,836

8,285,227

Liabilities

Deposits

8,178,084

7,949,241

7,412,072

Borrowings

69,568

69,547

69,676

Operating leases

11,511

12,255

17,190

Other liabilities

104,155

44,329

50,293

Total liabilities

8,363,318

8,075,372

7,549,231

Stockholders’ equity

Common stock, par value $0.01 per share

315

312

309

Additional paid-in capital

294,464

294,134

288,539

Retained earnings

587,323

567,269

500,783

Accumulated other comprehensive loss, net of income taxes

(36,586

)

(32,088

)

(47,308

)

Treasury stock, at cost

(37,942

)

(35,163

)

(6,327

)

Total stockholders' equity

807,574

794,464

735,996

Total liabilities and stockholders’ equity

9,170,892

8,869,836

8,285,227

Select Financial Data

As of and for the

Three Months Ended

March 31,

December 31,

March 31,

(Shares in thousands)

2026

2025

Selected Financial Ratios and Other Data:

Earnings per share

Basic

0.85

0.89

0.82

Diluted

0.84

0.88

0.81

Core net income (non-GAAP)

Basic

0.81

1.00

0.88

Diluted

0.80

0.99

0.88

Book value per common share

27.05

26.64

23.98

Tangible book value per share (non-GAAP)

26.59

26.18

23.51

Common shares outstanding, par value $.01 per share (1)

29,857

29,818

30,697

Weighted average common shares outstanding, basic

29,815

29,905

30,682

Weighted average common shares outstanding, diluted

30,150

30,169

30,946

(1) 70,000,000 shares authorized; 31,163,813, 31,045,377, and 30,940,480 shares issued for the periods ended March 31, 2026, December 31, 2025, and March 31, 2025 respectively, and 29,856,788, 29,818,424, and 30,696,940 shares outstanding for the periods ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

Select Financial Data

As of and for the

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

Selected Performance Metrics:

Return on average assets

1.15

1.22

Core return on average assets (non-GAAP)

1.10

1.37

1.33

Return on average equity

12.61

13.46

14.05

Core return on average tangible common equity (non-GAAP)

12.28

15.41

15.54

Average equity to average assets

9.13

9.07

8.71

Tangible common equity to tangible assets (non-GAAP)

8.67

8.81

8.73

Loan yield

5.18

5.11

5.00

Securities yield

5.10

5.05

5.15

Deposit cost

1.46

1.51

1.59

Net interest margin

3.75

3.66

3.55

Efficiency ratio (1)

49.11

54.46

54.10

Core efficiency ratio (non-GAAP)

49.55

51.13

52.11

Asset Quality Ratios:

Nonaccrual loans to total loans

1.97

0.56

0.70

Nonperforming assets to total assets

1.08

0.32

0.41

Allowance for credit losses on loans to nonaccrual loans

68.62

207.79

175.07

Allowance for credit losses on loans to total loans

1.35

1.16

1.23

Annualized net charge-offs to average loans

0.27

0.37

0.22

Liquidity Ratios:

2 day Liquidity Coverage of Uninsured Deposits %

101.76

102.85

93.75

Cash and Borrowing Capacity Coverage of Uninsured, Non-Supercore Deposits (%)

176.29

168.01

163.71

Capital Ratios:

Tier 1 leverage capital ratio

9.33

9.36

9.22

Tier 1 risk-based capital ratio

14.20

14.23

14.27

Total risk-based capital ratio

16.50

16.40

16.61

Common equity tier 1 capital ratio

14.20

14.23

14.27

(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 March 31, 2026

At December 31, 2025

At March 31, 2025

Amount

% of total loans

Amount

% of total loans

Amount

% of total loans

Commercial portfolio:

Commercial and industrial

1,293,879

25.7

1,335,096

26.9

1,183,297

25.3

Multifamily

1,776,477

35.3

1,643,295

33.1

1,371,950

29.4

Commercial real estate

379,922

7.5

363,162

7.3

409,004

8.7

Construction and land development

16,115

0.3

24,823

0.5

20,690

0.4

Total commercial portfolio

3,466,393

68.8

3,366,376

67.8

2,984,941

63.8

Retail portfolio:

Residential real estate lending

1,226,041

24.4

1,237,672

25.0

1,303,856

27.9

Consumer solar

315,030

6.3

325,154

6.6

356,601

7.6

Consumer and other

25,894

0.5

28,635

0.5

32,108

0.7

Total retail portfolio

1,566,965

31.2

1,591,461

32.1

1,692,565

36.2

Total loans held for investment

5,033,358

100.0

4,957,837

99.9

4,677,506

100.0

Allowance for credit losses

(68,155

)

(57,586

)

(57,676

)

Loans receivable, net

4,965,203

4,900,157

4,619,830

PACE assessments:

Available for sale, at fair value

Residential PACE assessments

215,198

16.6

203,502

15.9

161,147

13.4

Held-to-maturity, at amortized cost

Commercial PACE assessments

334,509

25.8

327,735

25.6

271,200

22.6

Residential PACE assessments

747,319

57.6

750,033

58.4

767,507

64.0

Total Held-to-maturity PACE assessments

1,081,828

83.4

1,077,768

84.0

1,038,707

86.6

Total PACE assessments

1,297,026

100.0

1,281,270

100.0

1,199,854

100.0

Allowance for credit losses

(709

)

(703

)

(654

)

Total PACE assessments, net

1,296,317

1,280,567

1,199,200

Loans receivable, net and total PACE assessments, net as a % of Deposits

76.6

77.7

78.5

Net Interest Income Analysis

Three Months Ended

March 31, 2026

December 31, 2025

March 31, 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

196,826

1,653

3.41

139,164

1,267

3.61

121,321

1,194

3.99

Securities (1)

3,452,338

43,427

5.10

3,451,195

43,940

5.05

3,220,590

40,867

5.15

Resell agreements

52,832

762

5.85

60,081

918

6.06

30,169

786

10.57

Loans receivable, net (2)

4,970,997

63,471

5.18

4,793,058

61,730

5.11

4,695,264

57,843

5.00

Total interest-earning assets

8,672,993

109,313

5.11

8,443,498

107,855

5.07

8,067,344

100,690

5.06

Non-interest-earning assets:

Cash and due from banks

5,907

6,729

5,045

Other assets

208,084

208,392

220,589

Total assets

8,886,984

8,658,619

8,292,978

Interest-bearing liabilities:

Savings, NOW and money market deposits

4,491,313

27,043

2.44

4,466,244

27,829

2.47

4,242,786

26,806

2.56

Time deposits

207,695

1,571

3.07

201,750

1,632

3.21

232,683

2,111

3.68

Total interest-bearing deposits

4,699,008

28,614

2.47

4,667,994

29,461

2.50

4,475,469

28,917

2.62

Borrowings

69,554

543

3.17

69,534

543

3.10

134,340

1,196

3.61

Total interest-bearing liabilities

4,768,562

29,157

2.48

4,737,528

30,004

2.51

4,609,809

30,113

2.65

Non-interest-bearing liabilities:

Demand and transaction deposits

3,229,756

3,073,106

2,901,061

Other liabilities

77,523

62,715

59,728

Total liabilities

8,075,841

7,873,349

7,570,598

Stockholders' equity

811,143

785,270

722,380

Total liabilities and stockholders' equity

8,886,984

8,658,619

8,292,978

Net interest income / interest rate spread

80,156

2.63

77,851

2.56

70,577

2.41

Net interest-earning assets / net interest margin

3,904,431

3.75

3,705,970

3.66

3,457,535

3.55

Total deposits / total cost of deposits

7,928,764

1.46

7,741,100

1.51

7,376,530

1.59

Total funding / total cost of funds

7,998,318

1.48

7,810,634

1.52

7,510,870

1.63

(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 1Q2026, 4Q2025, or 1Q2025 of $49, $855, and $0, respectively (in thousands).

Deposit Portfolio Composition

Three Months Ended

March 31, 2026

December 31, 2025

March 31, 2025

(In thousands)

Ending Balance

Average Balance

Ending Balance

Average Balance

Ending Balance

Average Balance

Non-interest-bearing demand deposit accounts

3,316,268

3,229,756

3,234,418

3,073,106

2,895,758

2,901,061

NOW accounts

184,010

179,923

184,635

172,342

187,078

177,827

Money market deposit accounts

4,145,115

3,982,258

4,000,096

3,960,099

3,772,423

3,739,548

Savings accounts

328,476

329,132

326,895

333,803

330,410

325,411

Time deposits

204,215

207,695

203,197

201,750

226,403

232,683

Total deposits

8,178,084

7,928,764

7,949,241

7,741,100

7,412,072

7,376,530

Three Months Ended

March 31, 2026

December 31, 2025

March 31, 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

NOW accounts

0.37

0.40

0.50

0.72

0.70

Money market deposit accounts

2.52

2.65

2.47

2.67

2.73

2.76

Savings accounts

1.01

1.02

1.01

1.18

1.28

Time deposits

3.03

3.07

3.14

3.21

3.52

3.68

Total deposits

1.40

1.46

1.37

1.51

1.57

1.59

Interest-bearing deposits

2.36

2.47

2.32

2.50

2.58

2.62

(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)

March 31, 2026

December 31, 2025

March 31, 2025

Loans 90 days past due and accruing

—

Nonaccrual loans held for sale

459

930

989

Nonaccrual loans - Commercial

92,884

22,108

27,872

Nonaccrual loans - Retail

5,970

5,607

5,072

Nonaccrual securities

Total nonperforming assets

99,316

28,651

33,940

Nonaccrual loans:

Commercial and industrial

—

713

12,786

Multifamily

81,820

10,316

—

Commercial real estate

—

3,979

Construction and land development

11,064

11,079

11,107

Total commercial portfolio

92,884

22,108

27,872

Residential real estate lending

2,446

2,419

1,375

Consumer solar

3,350

3,129

3,479

Consumer and other

174

218

Total retail portfolio

5,970

5,607

5,072

Total nonaccrual loans

98,854

27,715

32,944

Credit Quality

March 31, 2026

December 31, 2025

March 31, 2025

($ in thousands)

Criticized and classified loans

Commercial and industrial

41,685

42,438

55,157

Multifamily

93,893

45,154

8,540

Commercial real estate

3,277

—

3,979

Construction and land development

16,272

16,287

11,107

Residential real estate lending

2,446

2,419

1,375

Consumer solar

3,350

3,129

3,479

Consumer and other

174

218

Total loans

161,097

109,486

83,855

Criticized and classified loans to total loans

Commercial and industrial

0.83

0.86

1.18

Multifamily

1.87

0.91

0.18

Commercial real estate

0.07

—

0.09

Construction and land development

0.32

0.33

0.24

Residential real estate lending

0.05

0.03

Consumer solar

0.07

0.06

0.07

Consumer and other

—

Total loans

3.21

2.21

1.79

March 31, 2026

December 31, 2025

March 31, 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

0.26

0.87

0.12

0.99

0.28

1.29

Multifamily

0.02

0.95

0.66

0.29

—

0.23

Commercial real estate

—

0.45

—

0.49

—

0.39

Construction and land development

—

9.08

—

6.07

—

6.05

Residential real estate lending

(0.04

0.57

(0.08

0.58

—

0.73

Consumer solar

3.08

9.19

2.26

8.66

1.90

7.01

Consumer and other

0.84

3.36

(0.11

3.35

0.70

5.67

Total loans

0.27

1.35

0.37

1.16

0.22

1.23

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

Three Months Ended

(in thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Core operating revenue

Net Interest Income (GAAP)

80,156

77,852

70,577

Non-interest income (GAAP)

13,286

7,348

6,406

Add: Loss on Sale of Securities and Other Assets

822

485

680

Less: ICS One-Way Sell Fee Income (1)

(2,908

)

(1,886

)

Add: Loss and changes in fair value of loans held-for-sale (2)

—

3,821

(837

)

Add: Tax (credits) depreciation on solar investments (3)

—

287

2,868

Core operating revenue (non-GAAP)

91,356

87,907

79,685

Core non-interest expense

Non-interest expense (GAAP)

45,888

46,397

41,650

Less: Severance costs (4)

(622

)

(1,447

)

(125

)

Core non-interest expense (non-GAAP)

45,266

44,950

41,525

Core net income

Net Income (GAAP)

25,223

26,640

25,028

Add: Loss on Sale of Securities and Other Assets

822

485

680

Less: ICS One-Way Sell Fee Income (1)

(2,908

)

(1,886

)

Add: Loss and changes in fair value of loans held-for-sale (2)

—

3,821

(837

)

Add: Severance costs (4)

622

1,447

125

Add: Tax (credits) depreciation on solar investments (3)

—

287

2,868

Less: Tax on notable items

380

(828

)

(731

)

Core net income (non-GAAP)

24,139

29,966

27,124

Tangible common equity

Stockholders' equity (GAAP)

807,574

794,464

735,996

Less: Goodwill

(12,936

)

(12,936

)

(12,936

)

Less: Core deposit intangible

(808

)

(913

)

(1,343

)

Tangible common equity (non-GAAP)

793,830

780,615

721,717

Average tangible common equity

Average stockholders' equity (GAAP)

811,143

785,270

722,380

Less: Goodwill

(12,936

)

(12,936

)

(12,936

)

Less: Core deposit intangible

(859

)

(982

)

(1,413

)

Average tangible common equity (non-GAAP)

797,348

771,352

708,031

(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