Amalgamated Financial beats Q3 2026 estimates, but a $78M problem loan clouds the picture

Amalgamated Financial reported adjusted earnings per share of $1.14 for the third quarter of 2026, beating expectations and extending a streak that stretches back through most of the past two years, with revenue also topping expectations.

The engine behind the beat was deposit momentum: on-balance sheet deposits rose 3.0% to $8.71 billion, anchored by growth in labor and not-for-profit segments. That inflow kept the average cost of deposits flat and held non-interest-bearing deposits at a high share of the mix, a rare and valuable funding advantage for a bank this size.

The nonperforming asset ratio jumped to 1.08% of total assets from a year ago, and virtually all of that deterioration traces to a single $78 million multifamily borrower relationship. The concentration keeps the risk specific, but it is real, and investors will want to track whether that credit stabilizes or worsens in the quarters ahead.

Management responded to the quarter by raising full-year 2026 guidance again, now targeting full-year net interest income of $341 to $342 million alongside improved core returns on average assets and tangible common equity. A quarterly dividend of $0.17 per share was also declared, payable November 19.

Net income rose 36% year over year to $36.4 million, and the core efficiency ratio improved, crossing below the 50% threshold management had set as a target. The one prior quarter where EPS came in missing expectations, Q1 2026 at $0.80, now looks like an outlier, with the two most recent quarters showing the strongest beats in the trailing nine-period history.