Open the filing on EDGARAmalgamated Financial Corp. Reports Third Quarter 2026 Financial Results; Record Earnings and Profitability | 3.77% Margin Deposit Growth of 3.0% | Commercial Loan Growth of 2.6% | PACE Growth of 4.0%
NEW YORK, October 22, 2026 - (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
- Record net income of $36.4 million, or $1.20 per diluted share.
- Record core net income1 of $34.6 million, or $1.14 per diluted share.
- Record operating revenue of $101.7 million, or $3.36 per diluted share. Deposits and Liquidity
- On-balance sheet deposits increased $256.0 million, or 3.0%, to $8.7 billion.
- Off-balance sheet deposits were $1.1 billion, nearly 8% higher than the prior quarter.
- Political deposits decreased $76.5 million, or 3.7%, to $2.0 billion, in keeping with the election cycle.
- Average cost of deposits at 146 basis points, same as the prior quarter.
- Non-interest-bearing deposits were 42% of total deposits.
- Cash, borrowing capacity, and unpledged securities totaled $5.0 billion, or 98% of total uninsured deposits. Margin and Assets
- Net interest margin decreased by 1 basis point to 3.77%.
- Net interest income grew $1.9 million, or 2.2%, to a record $87.9 million.
- Net loans receivable increased $50.8 million, or 1.0%, to $5.1 billion.
- Net commercial loans grew $93.5 million, or 2.6%, to $3.7 billion.
- PACE assessments grew $53.0 million, or 4.0%, to $1.4 billion, including CPACE growth of $54.2 million. Capital and Returns
- Tangible book value per share1 was $27.54.
- Tier 1 leverage was 9.31% and Common Equity Tier 1 was 14.40%.
- Tangible common equity ratio 1 was 8.44%.
- Core return on average tangible common equity1 of 16.57%.
- Core return on average assets1 of 1.44%.
- Repurchased approximately 137,000 shares during the quarter, with $33.5 million in remaining capacity under the share repurchase program approved on June 9, 2026.
- Paid dividend of $5.1 million, at $0.17 per share. 1 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.
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 income1 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 income1 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 expense1 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 deposits1 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 share1 increased 0.2% to $27.54.
Tangible common equity1 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/.
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 notice
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: 1. uncertain conditions in the banking industry and in national, regional and local economies in core markets, which may have an adverse impact on business, operations and financial performance; 2. deterioration in the financial condition of borrowers, as well as deterioration in the reputational profile of borrowers, resulting in significant increases in credit losses and provisions for those losses; 3. deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors; 4. changes in deposits, including an increase in uninsured deposits; 5. ability to maintain sufficient liquidity to meet deposit and debt obligations as they come due, which may require that the Company sell investment securities at a loss, negatively impacting net income, earnings and capital; 6. unfavorable conditions in the capital markets, which may cause declines in stock price and the value of investments; 7. negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumer confidence, the financial condition of borrowers and consumer spending habits, which may affect, among other things, the level of non-performing assets, charge-offs and provision expense; 8. fluctuations or unanticipated changes in the interest rate environment including changes in net interest margin or changes in the yield curve that affect investments, loans or deposits; 9. the general decline in the real estate and lending markets, particularly in commercial real estate in the Company’s market areas, and the effects of the enactment of or changes to rent-control and other similar regulations on multi- family housing;
10. implementation by the current presidential administration of a regulatory reform agenda that is significantly different from that of the prior presidential administration, impacting the rule making, supervision, examination and enforcement of the banking regulation agencies; 11. changes in U.S. trade policies and other global political factors beyond the Company’s control, including the imposition of tariffs, which raise economic uncertainty, potentially leading to slower growth and a decrease in loan demand; 12. the outcome of legal or regulatory proceedings that may be instituted against us; 13. inability to achieve organic loan and deposit growth and the composition of that growth; 14. composition of the Company’s loan portfolio, including any concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which the Company operates; 15. inaccuracy of the assumptions and estimates the Company makes and policies that the Company implements in establishing the allowance for credit losses; 16. changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; 17. any matter that would cause the Company to conclude that there was impairment of any asset, including intangible assets; 18. limitations on the ability to declare and pay dividends; 19. the impact of competition with other financial institutions, including pricing pressures and the resulting impact on results, including compression to net interest margin; 20. increased competition for experienced members of the workforce including executives in the banking industry; 21. a failure in or breach of operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; 22. increased regulatory scrutiny, privacy concerns, and cyber risk and other exposure from the potential use of “big data” techniques, machine learning, and artificial intelligence in a wide range of applications including for fraud detection, credit underwriting, customer service, marketing, transaction execution, automated compliance and internal operations; 23. a downgrade in the Company’s credit rating; 24. “greenwashing claims” against the Company and environmental, social, and governance ("ESG") products and increased scrutiny and political opposition to ESG and diversity, equity, and inclusion ("DEI") practices; 25. any unanticipated or greater than anticipated adverse conditions (including the possibility of earthquakes, wildfires, and other natural disasters) affecting the markets in which the Company operates; 26. physical and transitional risks related to climate change as they impact the business and the businesses that the Company finances; 27. future repurchase of the Company’s shares through the Company’s common stock repurchase program; and 28. descriptions of assumptions underlying or relating to any of the foregoing. 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. Investor Contact: Jamie Lillis Solebury Strategic Communications shareholderrelations@amalgamatedbank.com 800-895-4172
Consolidated Statements of Income (unaudited) 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 Three Months Ended Nine Months Ended
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 September 30, 2026 June 30, 2026 September 30, 2025 ($ 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 Criticized and classified loans to total loans 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