Amalgamated Financial Corp. Reports Second Quarter 2026 Financial Results; Record Profitability | Margin Rises to 3.78%

Amalgamated Financial Corp. Reports Second Quarter 2026 Financial Results; Record Profitability | Margin Rises to 3.78% | 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 second quarter ended June 30, 2026.

Priscilla Sims Brown, President and Chief Executive Officer, commented, “This quarter showcases the power of the franchise we have built. With the strongest balance sheet in our history and one of the most differentiated deposit franchises in banking, we are successfully converting balance sheet growth into record earnings, record profitability, and a scalable platform for future performance.”

Second Quarter 2026 Highlights

Profitability and Revenue

Deposits and Liquidity

Margin and Assets

Capital and Returns

Second Quarter Earnings

Net income was $34.8 million, or $1.15 per diluted share, compared to $25.2 million, or $0.84 per diluted share, for the prior quarter. The $9.6 million increase during the quarter was primarily driven by $9.1 million lower provision for credit losses, and a $5.9 million increase in net interest income. This was partially offset by a $1.4 million increase in non-interest expense, as well as a $1.0 million decrease in non-interest income, which includes a $0.6 million decrease in ICS One-Way Sell fee income from off-balance sheet deposits. There was also a $3.0 million increase in income tax expense.

Core net income 1 was $33.1 million, or $1.10 per diluted share, compared to $24.1 million, or $0.80 per diluted share for the prior quarter. The table below shows a pre-tax gain of $2.3 million related to non-core income items, $0.1 million of non-core pre-tax expense items, and $0.6 million in tax on notable items were excluded in the calculation of core net income in the second 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

June 30, 2026

March 31, 2026

QoQ Change

Net Income (GAAP)

34,766

25,223

9,543

Add: Non-core (income)/losses

(2,264

)

(2,086

)

(178

)

Add: Non-core expense

622

(541

)

Add: Tax benefit (expense) on notable items

555

380

175

Core net income (non-GAAP)

33,137

24,139

8,999

Net interest income was $86.1 million, compared to $80.2 million for the prior quarter. Interest earning asset yields rose 3 basis points to 5.14%. Loan interest income increased $2.5 million and loan yields increased 3 basis points as average loan balances increased $109.4 million, reflecting repricing upside from commercial loan origination. Similarly, interest income on securities increased $5.2 million and securities yields increased 2 basis points as capital was allocated to PACE origination and AFS securities purchases in the quarter. Conversely, expense on total interest-bearing deposits increased $1.9 million as more deposits were brought back on-balance sheet in the quarter, resulting in the average balance of total interest-bearing deposits increasing by $320.7 million.

Net interest margin was 3.78%, an increase of 3 basis points from 3.75% in the prior quarter. The increase was primarily due to interest income generated from the origination of higher-yielding commercial loans and newly purchased AFS securities. In addition, interest income recaptured from the payoff of a nonaccrual construction loan and one-time commercial prepayment fees largely offset income lost from loans moved to nonaccrual status in the prior quarter. Income from prepayment penalties had a 3 basis point impact on net interest margin in the current quarter, compared to a non-material impact in the prior quarter. Total cost of deposits remained flat.

Provision for credit losses was an expense of $4.4 million, compared to an expense of $13.5 million in the prior quarter. The decrease of $9.1 million was primarily driven by $9.2 million of specific reserves established in the prior quarter on $78.0 million of multifamily loans to a single-borrower after the borrower indicated an expected default. Management continues to evaluate resolution alternatives on these loans, including foreclosure, note sales, or other exit strategies. During the current quarter, reserves on three of these loans that have been on nonaccrual status since the fourth quarter of 2025 were increased by a combined $1.1 million as the loans move closer to resolution. Offsetting this increase in reserves was a release of $1.5 million on a nonaccrual construction loan that was paid off during the quarter. The remaining provision expense in the second quarter was primarily driven by expected consumer charge-offs and additional required reserves from the ACL model calculation.

Non-interest income was $12.3 million, compared to $13.3 million in the prior quarter. Excluding all non-core income items noted above, core non-interest income 1 was $10.0 million, compared to $11.2 million in the prior quarter. The decrease was primarily related to lower core solar tax equity income due to exiting a solar tax investment in the previous quarter, as well as a discrete benefit from BOLI policies in the prior quarter.

Non-interest expense was $47.3 million, an increase of $1.4 million from the prior quarter. Excluding all non-core expense items noted above, core non-interest expense 1 was $47.2 million, an increase of $2.0 million from the prior quarter. This was mainly driven by $2.0 million of higher compensation and employee benefit costs consisting of accruals related to increased performance, as well as for the additional payroll period in 2026. In addition, there was an expected $0.8 million increase in technology costs related to implementation of key modernization projects. This was offset by a $0.6 million decrease in occupancy expense, and a $0.7 million decrease in professional fees.

Provision for income tax expense was $11.9 million, compared to $8.8 million for the prior quarter. The effective tax rate was 25.4%, compared to 26.0% in the prior quarter. The decrease was primarily the result of the recognition of a $0.5 million tax credit purchased in the quarter. Excluding the purchased tax credit and other discrete tax items, the current quarter tax rate would have been 26.4%. The tax credits are included in the annualized effective tax rate.

Balance Sheet Quarterly Summary

Total assets expanded to $9.4 billion at June 30, 2026, a $240.6 million, or 3% increase and total average assets were $9.3 billion. Notable changes within individual balance sheet line items include a $81.2 million increase in traditional securities and a $114.9 million increase in net loans receivable, primarily funded by more deposits held on-balance sheet. For liabilities, on-balance sheet deposits increased by $280.3 million and average total deposits increased by $460.7 million, reflecting growth across the labor, social/philanthropy, and political segments. Off-balance sheet deposits decreased by $96.8 million in the quarter. Equity grew by $27.4 million.

Total net loans receivable at June 30, 2026 were $5.1 billion, an increase of $114.9 million, or 2.3% for the quarter. The loan balance increase was primarily driven by an $85.1 million increase in multifamily loans, a $56.2 million increase in commercial real estate loans, and a $13.2 million increase in commercial and industrial loans. Portfolios in non-growth mode included a $11.5 million decrease in consumer solar loans, and a $26.5 million decrease in residential loans.

Total on-balance sheet deposits at June 30, 2026 were $8.5 billion, an increase of $280.3 million, or 3.4%, 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 $2.1 billion, an increase of $211.9 million during the quarter. Non-interest-bearing deposits represented 40% of average total deposits and 39% 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 $4.8 billion, comprising 57% of on-balance sheet deposits.

Nonperforming assets totaled $102.7 million, or 1.09% of period-end total assets at June 30, 2026, an increase of $3.8 million, compared with $98.9 million, or 1.08% of period-end total assets on a linked quarter basis. The increase in nonperforming assets was driven by one $5.3 million New York multifamily loan that was placed on nonaccrual status this quarter. In addition, two small business loans totaling $0.1 million were also placed on nonaccrual status. This was partially offset by the payoff of a $2.3 million legacy non-performing construction loan.

During the quarter, criticized or classified loans decreased $9.0 million, largely driven by the upgrade of one $9.1 million commercial and industrial loan. Also, there were payoffs of one $3.3 million commercial real estate loan, one $2.3 million construction loan mentioned above, and two small business loans totaling $0.4 million. Lastly, two additional small business loans totaling $0.2 million were charged off during the quarter. This was partially offset by downgrades on one $6.2 million multifamily loan, and nine small business loans totaling $0.7 million.

During the quarter, the allowance for credit losses on loans increased $0.7 million to $68.9 million. The ratio of allowance to total loans was 1.34%, a decrease of 1 basis point from 1.35% in the first quarter of 2026.

Capital Quarterly Summary

As of June 30, 2026, the Common Equity Tier 1 Capital ratio was 14.20%, the Total Risk-Based Capital ratio was 16.43%, and the Tier 1 Leverage Capital ratio was 9.20%. Stockholders’ equity was $835.0 million, an increase of $27.4 million during the quarter. The increase in stockholders’ equity was primarily driven by $34.8 million of net income for the quarter, offset by an increase of $4.2 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 during the quarter, and $5.2 million in dividends paid at $0.17 per outstanding share.

Tangible book value per share 1 increased 3.3% to $27.47. Tangible common equity 1 increased slightly to 8.74% of tangible assets due to higher quarterly earnings, offset by an increase in average balance sheet size.

Conference Call

As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its second quarter 2026 results today, July 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. Second 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 13761665. The telephonic replay will be available until July 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/.

____________________

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 June 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, 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

Six Months Ended

June 30,

March 31,

June 30,

($ in thousands)

2026

2025

2026

2025

INTEREST AND DIVIDEND INCOME

(unaudited)

Loans

66,019

63,471

58,723

129,490

116,566

Securities

49,552

44,189

43,737

93,741

85,390

Interest-bearing deposits in banks

1,592

1,653

1,639

3,246

2,833

Total interest and dividend income

117,163

109,313

104,099

226,477

204,789

INTEREST EXPENSE

Deposits

30,563

28,614

30,593

59,177

59,510

Borrowed funds

543

597

1,087

1,793

Total interest expense

31,106

29,157

31,190

60,264

61,303

NET INTEREST INCOME

86,057

80,156

72,909

166,213

143,486

Provision for credit losses

4,429

13,488

4,890

17,917

5,486

Net interest income after provision for credit losses

81,628

66,668

68,019

148,296

138,000

NON-INTEREST INCOME

Trust Department fees

4,232

4,306

3,879

8,538

8,069

Service charges on deposit accounts

6,863

7,204

3,873

14,067

7,311

Bank-owned life insurance income

648

1,322

796

1,971

1,422

Losses on sale of securities and other assets, net

(39

)

(822

)

(1,041

)

(861

)

(1,721

)

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

—

850

Equity method investments income (loss)

227

624

850

(2,458

)

Other income

373

640

449

1,013

957

Total non-interest income

12,304

13,286

8,025

25,590

14,430

NON-INTEREST EXPENSE

Compensation and employee benefits

27,181

25,750

23,240

52,930

46,554

Occupancy and depreciation

3,523

4,155

3,476

7,677

6,768

Professional fees

3,008

3,736

3,283

6,744

8,022

Technology

7,412

6,618

5,485

14,030

11,103

Office maintenance and depreciation

484

550

570

1,034

1,199

Amortization of intangible assets

105

144

209

287

Advertising and promotion

900

605

412

1,505

463

Federal deposit insurance premiums

1,030

1,005

900

2,035

1,800

Other expense

3,669

3,364

3,074

7,036

6,038

Total non-interest expense

47,312

45,888

40,584

93,200

82,234

Income before income taxes

46,620

34,066

35,460

80,686

70,196

Income tax expense

11,854

8,843

9,471

20,697

19,179

Net income

34,766

25,223

25,989

59,989

51,017

Earnings per common share - basic

1.16

0.85

2.01

1.67

Earnings per common share - diluted

1.15

0.84

1.99

1.65

Consolidated Statements of Financial Condition

($ in thousands)

June 30, 2026

March 31, 2026

December 31, 2025

Assets

(unaudited)

Cash and due from banks

4,173

4,752

4,501

Interest-bearing deposits in banks

163,611

174,976

286,716

Total cash and cash equivalents

167,784

179,728

291,217

Securities:

Available for sale, at fair value

Traditional securities

2,034,532

1,928,067

1,580,049

Property Assessed Clean Energy (“PACE”) assessments

206,302

215,198

203,502

2,240,834

2,143,265

1,783,551

Held-to-maturity, at amortized cost:

Traditional securities, net of allowance for credit losses of $38, $40, and $41, respectively

441,428

466,741

476,950

PACE assessments, net of allowance for credit losses of $749, $709, and $703, respectively

1,130,119

1,081,119

1,077,065

1,571,547

1,547,860

1,554,015

Loans held for sale

459

2,814

Loans receivable, net of deferred loan origination fees and costs

5,149,085

5,033,358

4,957,273

Allowance for credit losses

(68,939

)

(68,155

)

(57,586

)

Loans receivable, net

5,080,146

4,965,203

4,899,687

Resell agreements

59,271

66,134

48,662

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

5,249

5,009

Accrued interest receivable

63,795

56,248

65,128

Premises and equipment, net

20,237

10,107

4,685

Bank-owned life insurance

108,451

107,802

108,941

Right-of-use lease asset

7,551

9,413

9,602

Deferred tax asset, net

33,310

31,336

30,750

Goodwill

12,936

Intangible assets, net

704

808

913

Equity method investments

5,505

5,578

7,979

Other assets

33,762

29,006

43,947

Total assets

9,411,541

9,170,892

8,869,836

Liabilities

Deposits

8,458,414

8,178,084

7,949,241

Borrowings

69,754

69,568

69,547

Operating leases

9,094

11,511

12,255

Other liabilities

39,286

104,155

44,329

Total liabilities

8,576,548

8,363,318

8,075,372

Stockholders’ equity

Common stock, par value $0.01 per share

315

312

Additional paid-in capital

296,491

294,464

294,134

Retained earnings

616,925

587,323

567,269

Accumulated other comprehensive loss, net of income taxes

(40,796

)

(36,586

)

(32,088

)

Treasury stock, at cost

(37,942

)

(37,942

)

(35,163

)

Total stockholders' equity

834,993

807,574

794,464

Total liabilities and stockholders’ equity

9,411,541

9,170,892

8,869,836

Select Financial Data

As of and for the

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

(Shares in thousands)

2026

2025

2026

2025

Selected Financial Ratios and Other Data:

Earnings per share

Basic

1.16

0.85

2.01

1.67

Diluted

1.15

0.84

1.99

1.65

Core net income (non-GAAP)

Basic

1.11

0.81

0.88

1.92

1.77

Diluted

1.10

0.80

0.88

1.90

1.75

Book value per common share

27.93

27.05

24.79

27.93

24.79

Tangible book value per share (non-GAAP)

27.47

26.59

24.33

27.47

24.33

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

29,900

29,857

30,412

29,900

30,412

Weighted average common shares outstanding, basic

29,878

29,815

30,558

29,847

30,619

Weighted average common shares outstanding, diluted

30,189

30,150

30,758

30,184

30,872

(1) 70,000,000 shares authorized; 31,207,172, 31,163,813, and 30,983,139 shares issued for the periods ended June 30, 2026, March 31, 2026, and June 30, 2025 respectively, and 29,900,147, 29,856,788, and 30,412,241 shares outstanding for the periods ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

Select Financial Data

As of and for the

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

2026

2025

2026

2025

Selected Performance Metrics:

Return on average assets

1.49

1.15

1.23

1.33

1.23

Core return on average assets (non-GAAP)

1.42

1.10

1.28

1.27

1.30

Return on average equity

17.04

12.61

14.06

14.85

14.06

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

16.51

12.28

14.90

14.42

15.21

Average equity to average assets

8.77

9.13

8.78

8.94

8.75

Tangible common equity to tangible assets (non-GAAP)

8.74

8.67

8.60

8.74

8.60

Loan yield

5.21

5.18

5.05

5.20

5.03

Securities yield

5.12

5.10

5.11

5.13

Deposit cost

1.46

1.62

1.46

1.61

Net interest margin

3.78

3.75

3.55

3.76

3.55

Efficiency ratio (1)

48.10

49.11

50.14

48.59

52.07

Core efficiency ratio (non-GAAP)

49.15

49.55

49.21

49.34

50.64

Asset Quality Ratios:

Nonaccrual loans to total loans

1.98

1.97

0.74

1.98

0.74

Nonperforming assets to total assets

1.09

1.08

0.41

1.09

0.41

Allowance for credit losses on loans to nonaccrual loans

67.50

68.95

170.02

67.50

170.02

Allowance for credit losses on loans to total loans

1.34

1.35

1.25

1.34

1.25

Annualized net charge-offs to average loans

0.25

0.27

0.30

0.26

Liquidity Ratios:

2 day Liquidity Coverage of Uninsured Deposits %

99.86

101.76

96.73

99.86

96.73

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

171.27

176.29

167.94

171.27

167.94

Capital Ratios:

Tier 1 leverage capital ratio

9.20

9.33

9.22

9.20

9.22

Tier 1 risk-based capital ratio

14.20

14.13

14.20

14.13

Total risk-based capital ratio

16.43

16.50

16.43

Common equity tier 1 capital ratio

14.20

14.13

14.20

14.13

(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 June 30, 2026

At March 31, 2026

At June 30, 2025

Amount

% of total loans

Amount

% of total loans

Amount

% of total loans

Commercial portfolio:

Commercial and industrial

1,307,075

25.4

1,293,879

25.7

1,196,804

25.4

Multifamily

1,861,575

36.2

1,776,477

35.3

1,406,193

29.8

Commercial real estate

436,144

8.5

379,922

7.5

422,068

9.0

Construction and land development

16,652

0.2

16,115

0.3

20,330

0.4

Total commercial portfolio

3,621,446

70.3

3,466,393

68.8

3,045,395

64.6

Retail portfolio:

Residential real estate lending

1,199,552

23.3

1,226,041

24.4

1,292,013

27.4

Consumer solar

303,538

5.9

315,030

6.3

345,604

7.3

Consumer and other

24,549

0.5

25,894

0.5

31,332

0.7

Total retail portfolio

1,527,639

29.7

1,566,965

31.2

1,668,949

35.4

Total loans held for investment

5,149,085

100.0

5,033,358

100.0

4,714,344

100.0

Allowance for credit losses

(68,939

)

(68,155

)

(58,998

)

Loans receivable, net

5,080,146

4,965,203

4,655,346

PACE assessments:

Available for sale, at fair value

Residential PACE assessments

206,302

15.5

215,198

16.6

178,247

14.7

Held-to-maturity, at amortized cost

Commercial PACE assessments

365,470

27.3

334,509

25.8

278,006

22.9

Residential PACE assessments

765,398

57.2

747,319

57.6

759,871

62.4

Total Held-to-maturity PACE assessments

1,130,868

84.5

1,081,828

83.4

1,037,877

85.3

Total PACE assessments

1,337,170

100.0

1,297,026

100.0

1,216,124

100.0

Allowance for credit losses

(749

)

(709

)

(657

)

Total PACE assessments, net

1,336,421

1,296,317

1,215,467

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

75.9

76.6

75.9

Net Interest Income Analysis

Three Months Ended

June 30, 2026

March 31, 2026

June 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

187,933

1,592

3.40

196,826

1,653

3.41

161,965

1,639

4.06

Securities (1)

3,807,977

48,628

5.12

3,452,338

43,427

5.10

3,361,812

42,850

5.11

Resell agreements

63,570

924

5.83

52,832

762

5.85

52,621

887

6.76

Loans receivable, net (2)

5,080,371

66,019

5.21

4,970,997

63,471

5.18

4,659,667

58,723

5.05

Total interest-earning assets

9,139,851

117,163

5.14

8,672,993

109,313

5.11

8,236,065

104,099

5.07

Non-interest-earning assets:

Cash and due from banks

4,024

5,907

5,622

Other assets

195,172

208,084

203,992

Total assets

9,339,047

8,886,984

8,445,679

Interest-bearing liabilities:

Savings, NOW and money market deposits

4,793,149

28,845

2.41

4,491,313

27,043

2.44

4,457,620

28,653

2.58

Time deposits

226,525

1,718

3.04

207,695

1,571

3.07

218,835

1,940

3.56

Total interest-bearing deposits

5,019,674

30,563

2.44

4,699,008

28,614

2.47

4,676,455

30,593

2.62

Borrowings

68,705

543

3.17

69,554

543

3.17

75,741

597

3.16

Total interest-bearing liabilities

5,088,379

31,106

2.45

4,768,562

29,157

2.48

4,752,196

31,190

2.63

Non-interest-bearing liabilities:

Demand and transaction deposits

3,369,805

3,229,756

2,895,845

Other liabilities

62,276

77,523

56,203

Total liabilities

8,520,460

8,075,841

7,704,244

Stockholders' equity

818,587

811,143

741,435

Total liabilities and stockholders' equity

9,339,047

8,886,984

8,445,679

Net interest income / interest rate spread

86,057

2.69

80,156

2.63

72,909

2.44

Net interest-earning assets / net interest margin

4,051,472

3.78

3,904,431

3.75

3,483,869

3.55

Total deposits / total cost of deposits

8,389,479

1.46

7,928,764

1.46

7,572,300

1.62

Total funding / total cost of funds

8,458,184

1.48

7,998,318

1.48

7,648,041

1.64

(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 2Q2026, 1Q2026, or 2Q2025 of $526, $49, and $200, respectively (in thousands).

Net Interest Income Analysis

Six Months Ended

June 30, 2026

June 30, 2025

(In thousands)

Average

Balance

Income / Expense

Yield /

Rate

Average

Balance

Income / Expense

Yield /

Rate

Interest-earning assets:

Interest-bearing deposits in banks

192,639

3,246

3.40

141,756

2,833

4.03

Securities (1)

3,631,139

92,055

5.11

3,291,591

83,717

5.13

Resell agreements

58,231

1,686

5.84

41,457

1,673

8.14

Total loans, net (2)

5,025,986

129,490

5.20

4,677,367

116,566

5.03

Total interest-earning assets

8,907,995

226,477

5.13

8,152,171

204,789

5.07

Non-interest-earning assets:

Cash and due from banks

4,676

5,335

Other assets

201,593

212,245

Total assets

9,114,264

8,369,751

Interest-bearing liabilities:

Savings, NOW and money market deposits

4,643,065

55,888

2.43

4,350,797

55,459

2.57

Time deposits

217,162

3,289

3.05

225,721

4,051

3.62

Total interest-bearing deposits

4,860,227

59,177

2.46

4,576,518

59,510

2.62

Borrowings

69,127

1,087

3.17

104,879

1,793

3.45

Total interest-bearing liabilities

4,929,354

60,264

2.47

4,681,397

61,303

2.64

Non-interest-bearing liabilities:

Demand and transaction deposits

3,300,167

2,898,439

Other liabilities

69,857

57,955

Total liabilities

8,299,378

7,637,791

Stockholders' equity

814,886

731,960

Total liabilities and stockholders' equity

9,114,264

8,369,751

Net interest income / interest rate spread

166,213

2.66

143,486

2.43

Net interest-earning assets / net interest margin

3,978,641

3.76

3,470,774

3.55

Total deposits / total cost of deposits

8,160,394

1.46

7,474,957

1.61

Total funding / total cost of funds

8,229,521

1.48

7,579,836

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 June YTD 2026 and June YTD 2025 of $575 thousand and $200 thousand, respectively.

Deposit Portfolio Composition

Three Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

(In thousands)

Ending Balance

Average Balance

Ending Balance

Average Balance

Ending Balance

Average Balance

Non-interest-bearing demand deposit accounts

3,286,325

3,369,806

3,316,268

3,229,756

2,810,489

2,895,845

NOW accounts

183,532

177,893

184,010

179,923

177,494

177,312

Money market deposit accounts

4,428,188

4,285,511

4,145,115

3,982,258

4,216,318

3,950,346

Savings accounts

322,508

329,744

328,476

329,132

330,892

329,962

Time deposits

237,861

226,525

204,215

207,695

198,079

218,835

Total deposits

8,458,414

8,389,479

8,178,084

7,928,764

7,733,272

7,572,300

Three Months Ended

June 30, 2026

March 31, 2026

June 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

NOW accounts

0.41

0.39

0.37

0.40

0.68

0.72

Money market deposit accounts

2.58

2.60

2.52

2.65

2.70

2.77

Savings accounts

1.00

1.03

1.01

1.02

1.32

1.30

Time deposits

2.90

3.04

3.03

3.07

3.22

3.56

Total deposits

1.48

1.46

1.40

1.46

1.63

1.62

Interest-bearing deposits

2.42

2.44

2.36

2.47

2.56

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)

June 30, 2026

March 31, 2026

June 30, 2025

Loans 90 days past due and accruing

—

Nonaccrual loans held for sale

459

Nonaccrual loans - Commercial

96,030

92,884

27,501

Nonaccrual loans - Retail

6,103

5,511

7,199

Nonaccrual securities

Total nonperforming assets

102,692

98,857

35,165

Nonaccrual loans:

Commercial and industrial

112

—

12,501

Multifamily

87,115

81,820

—

Commercial real estate

—

3,893

Construction and land development

8,803

11,064

11,107

Total commercial portfolio

96,030

92,884

27,501

Residential real estate lending

3,525

1,987

3,805

Consumer solar

2,414

3,350

3,193

Consumer and other

164

174

201

Total retail portfolio

6,103

5,511

7,199

Total nonaccrual loans

102,133

98,395

34,700

Credit Quality

June 30, 2026

March 31, 2026

June 30, 2025

($ in thousands)

Criticized and classified loans

Commercial and industrial

31,952

41,685

64,305

Multifamily

100,080

93,893

11,324

Commercial real estate

—

3,277

3,893

Construction and land development

14,002

16,272

11,107

Residential real estate lending

3,525

2,446

3,805

Consumer solar

2,414

3,350

3,193

Consumer and other

164

174

201

Total loans

152,137

161,097

97,828

Criticized and classified loans to total loans

Commercial and industrial

0.62

0.83

1.36

Multifamily

1.94

1.87

0.24

Commercial real estate

—

0.07

0.08

Construction and land development

0.27

0.32

0.24

Residential real estate lending

0.07

0.05

0.08

Consumer solar

0.05

0.07

Consumer and other

—

Total loans

2.95

3.21

2.07

June 30, 2026

March 31, 2026

June 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

0.06

0.90

0.26

0.87

0.32

1.42

Multifamily

—

0.96

0.02

0.95

—

0.20

Commercial real estate

—

0.44

—

0.45

—

0.49

Construction and land development

—

0.07

—

9.08

—

6.33

Residential real estate lending

(0.02

0.57

(0.04

0.57

(0.01

0.69

Consumer solar

3.91

9.83

3.08

9.19

2.91

7.26

Consumer and other

0.09

3.29

0.84

3.36

0.07

5.74

Total loans

0.25

1.34

0.27

1.35

0.30

1.25

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

Six Months Ended

(in thousands)

June 30, 2026

March 31, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Core operating revenue

Net Interest Income (GAAP)

86,057

80,156

72,909

166,213

143,486

Non-interest income (GAAP)

12,304

13,286

8,025

25,590

14,430

Add: Loss on Sale of Securities and Other Assets

822

1,041

861

1,721

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

(2,303

)

(2,908

)

(102

)

(5,211

)

(111

)

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

—

(837

)

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

—

310

—

3,179

Core operating revenue (non-GAAP)

96,097

91,356

82,183

187,453

161,868

Core non-interest expense

Non-interest expense (GAAP)

47,312

45,888

40,584

93,200

82,234

Less: Severance costs (4)

(80

)

(622

)

(142

)

(702

)

(267

)

Core non-interest expense (non-GAAP)

47,232

45,266

40,442

92,498

81,967

Core net income

Net Income (GAAP)

34,766

25,223

25,989

59,989

51,017

Add: Loss on Sale of Securities and Other Assets

822

1,041

861

1,721

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

(2,303

)

(2,908

)

(102

)

(5,211

)

(111

)

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

—

(837

)

Add: Severance costs (4)

622

142

702

267

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

—

310

—

3,179

Add: Tax benefit (expense) on notable items

555

380

(371

)

935

(1,109

)

Core net income (non-GAAP)

33,137

24,139

27,009

57,276

54,127

Tangible common equity

Stockholders' equity (GAAP)

834,993

807,574

753,984

834,993

753,984

Less: Goodwill

(12,936

)

(12,936

)

(12,936

)

(12,936

)

(12,936

)

Less: Core deposit intangible

(704

)

(808

)

(1,200

)

(704

)

(1,200

)

Tangible common equity (non-GAAP)

821,353

793,830

739,848

821,353

739,848

Average tangible common equity

Average stockholders' equity (GAAP)

818,587

811,143

741,435

814,886

731,960

Less: Goodwill

(12,936

)

(12,936

)

(12,936

)

(12,936

)

(12,936

)

Less: Core deposit intangible

(754

)

(859

)

(1,270

)

(806

)

(1,341

)

Average tangible common equity (non-GAAP)

804,897

797,348

727,229

801,144

717,683

(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