Amalgamated Financial Corp. (Nasdaq: AMAL) reported second-quarter 2026 net income of $34.8 million, up 33.8% from $25.9 million a year earlier, as a 23 basis point expansion in net interest margin to 3.78% and 11.0% loan growth pushed pre-provision revenue sharply higher. Diluted earnings per share landed at $1.15, compared with $0.84 in the second quarter of 2025, and the company lifted its quarterly dividend to $0.17 per share. The earnings beat arrived with a notable credit blemish: a single-borrower relationship of $78.0 million in multifamily loans migrated to nonaccrual during the first quarter, which drove $74.0 million of incremental nonperforming assets and pushed the nonperforming assets ratio to 1.09% of total assets from 0.32% at year-end 2025.
The story for the equity is a classic community-bank NIM trade: the yield on earning assets rose to 5.14% from 5.07%, the cost of interest-bearing deposits fell 18 basis points to 2.45%, and management has shifted the funding mix toward lower-cost non-interest-bearing demand deposits, which now represent 40.2% of average deposits. Our read is that the market is pricing AMAL for the credit issue to deepen rather than for the franchise to compound; the stock at roughly $50.97 (a recent close) on 29.9 million shares outstanding implies a market capitalization near $1.52 billion, which is approximately 1.6x tangible book and a price-to-2026E-earnings multiple in the low-12x range. The single load-bearing risk is the workout on the $78.0 million multifamily credit, with charge-off timing and reserve build the next two data points that test the franchise-quality narrative.