Amalgamated Financial (NASDAQ:AMAL), the holding company for the mission-driven Amalgamated Bank, reported first-quarter 2026 results that featured robust top-line growth and improved lending profitability.
The New York-based institution generated net revenue of $93.4 million, representing nearly 10% sequential growth.
However, net income for the quarter was $25.2 million, or $0.84 per diluted share, a slight decrease from the $26.6 million reported in the final quarter of 2025.
The primary headwind to earnings was a $13.5 million provision for credit losses, an $8 million increase from the prior quarter.
Management attributed the bulk of this spike—approximately $9.2 million—to a specific reserve for a single-borrower multifamily relationship that moved to nonaccrual status.
Despite this isolated credit event, the bank’s core fundamentals remained strong, with net interest income rising to $80.2 million.
A standout metric for the period was the bank's net interest margin (NIM), which expanded 9 basis points to 3.75%.
This expansion was driven by a combination of higher-yielding commercial loan growth and a 5 basis point reduction in the average cost of total deposits, which fell to 1.46%.
The bank's ability to lower deposit costs while maintaining a stable 41% non-interest-bearing deposit base continues to differentiate it from regional peers facing higher funding pressures.