Amalgamated Financial Corp.

What they do

Amalgamated Bank offers commercial and retail banking, trust and custody, and investment management services, with a focus on values-based clients such as labor unions, nonprofits, and impact businesses. As of June 30, 2026, the bank had $9.41 billion in total assets, $5.08 billion in net loans, and $8.46 billion in deposits. Its trust business held $39.41 billion in assets under custody and $17.24 billion in assets under management.

Revenue drivers

• Net interest income — Generated from loans and securities; Q2 2026 net interest income was $86.1 million, up 7.4% from the prior quarter, with a net interest margin of 3.78%.
• Commercial lending — Includes commercial and industrial, commercial real estate, and multifamily loans; net commercial loans grew 4.5% to $3.6 billion in Q2 2026.
• Consumer and PACE lending — Consumer loans are predominantly residential solar; PACE assessments grew 3.1% to $1.3 billion, including CPACE growth of $31.0 million.
• Trust and investment management fees — Fee income from custody, safekeeping, and asset management services; the trust business held $17.24 billion in assets under management as of June 30, 2026.

Recent performance

In Q2 2026, the company reported record net income of $34.8 million, or $1.15 per diluted share, compared to $25.2 million in Q1 2026. Core net income was $33.1 million, or $1.10 per diluted share. Net interest income rose 7.4% to $86.1 million, and the net interest margin expanded to 3.78%. Deposits grew 3.4% to $8.5 billion, with political deposits up 11.4% to $2.1 billion. Tangible book value per share increased to $27.47.

Strategy

The company focuses on impact banking and lending to mission-aligned customers, including those in renewable energy and affordable housing. It aims to convert balance sheet growth into record earnings and profitability, as stated in the Q2 2026 earnings release. The bank continues to grow its PACE and commercial loan portfolios and emphasizes its differentiated deposit franchise. Management highlights a scalable platform for future performance and has authorized a new $40 million share repurchase program.

Risks

• Credit risk in commercial real estate — The loan portfolio includes CRE and multifamily loans, which could be adversely affected by economic downturns or rent-control regulations.
• Interest rate sensitivity — Changes in interest rates or the yield curve could impact net interest margin and the value of investment securities.
• Deposit concentration in political accounts — Political deposits increased to $2.1 billion, surpassing the 2024 election peak, but could be volatile and subject to regulatory or political changes.
• Climate-related transition risk — The bank has set net zero targets and could face costs or reputational risks from meeting these commitments or from changes in climate policies.

Outlook

Management raised guidance for deposit growth of $280 million and loan growth of $115 million, based on Q2 2026 results. They expect continued margin expansion and profitability, with a strong balance sheet supporting future growth. The company plans to continue allocating capital to PACE origination and AFS securities, and to execute on its share repurchase program.