Amalgamated Financial Corp.
For the period ended Sep 30, 2026. Filed Nov 3, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 3, 2026
AMAL$49.56+0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0001823608-26-000182
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-03.
0001823608-26-000215
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 166 previous paragraphs and 164 current paragraphs.
97 unchanged; 63 reworded; 4 added; 5 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 19 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Net interest spread was 2.67% for the three months ended September 30, 2026, compared to 2.51% for the three months ended September 30, 2025, an increase of 16 basis points. Our net interest margin was 3.77% for the three months ended September 30, 2026, an increase of 17 basis points from 3.60% for the three months ended September 30, 2025. The increase was primarily attributable to a decrease in the cost of interest-bearing liabilities and an increase in average balance of non-interest-bearing liabilities.
Current report
As of September 30, 2026, all traditional securities were current as to their interest payments. As of September 30, 2026, there were no delinquent RPACE assessments; however, $84.5 million of CPACE assessments were more than 90 days delinquent and continued to accrue interest in accordance with their contractual terms given management’s assessment of collectability given the bonded nature of the assessment and available enforcement actions. There were no delinquent traditional securities or PACE assessments as of December 31, 2025.
Current report
Total estimated uninsured deposits at September 30, 2026 were $5.07 billion, or 58.22% of total deposits, compared to $4.61 billion, or 58.02% of total deposits at December 31, 2025.
Current report
On October 27, 2026, the Company received approval from the Federal Reserve Board to redeem the outstanding balance of its subordinated notes in the amount of $54.3 million. The redemption is expected to be completed in the fourth quarter of 2026.
Removed paragraphs (5)
Previous report
Net interest spread was 2.69% for the three months ended June 30, 2026, compared to 2.44% for the three months ended June 30, 2025, an increase of 25 basis points. Our net interest margin was 3.78% for the three months ended June 30, 2026, an increase of 23 basis points from 3.55% from the three months ended June 30, 2025. This was largely due to increases in yields and average balances on interest-bearing assets and a decrease in total cost of funds.
Previous report
Non-interest income was$25.6 million for the six months ended June 30, 2026, compared to$14.4 million for the six months ended June 30, 2025. The increase of$11.2 million for thesix months ended June 30, 2026 compared to thesix months ended
Previous report
Total estimated uninsured deposits at June 30, 2026 and December 31, 2025 were $4.84 billion and $4.61 billion, respectively.
Previous report
During April 2025, the Company entered into a fifteen-year lease agreement, following a sixteen-month base rent abatement period, for the Company's headquarters. The base rent amount for the premises commences at $6.2 million per annum and is escalated by approximately 9% on the fifth anniversary of rent commencement and by an additional approximately 8% on the tenth anniversary of rent commencement. The lease is not set to commence until the Company moves to the new premises later in 2026.
Previous report
During the fourth quarter of 2025, the Company funded $2.4 million to Greenskies Clean Energy LLC as a solar tax equity investment. As part of this investment agreement, the Company committed to additional fundings of $5.6 million which is recognized as a liability on the balance sheet given this future event is unconditional and legally binding.
Reworded paragraphs (63)
Previous wording
The following is a discussion of our consolidated financial condition as of June 30, 2026, as compared to December 31, 2025, and our results of operations for the three and six month periods ended June 30, 2026 and June 30, 2025. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition. This discussion and analysis is best read in conjunction with our unaudited consolidated financial statements and related notes as well as the financial and statistical data appearing elsewhere in this report and our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”), filed with the Securities and Exchange Commission on March 5, 2026. Historical results of operations and the percentage relationships among any amounts included, and any trends that may appear, may not indicate results of operations for any future periods.
Current wording
The following is a discussion of our consolidated financial condition as of September 30, 2026, as compared to December 31, 2025, and our results of operations for the three and nine months ended September 30, 2026 and September 30, 2025. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition. This discussion and analysis is best read in conjunction with our unaudited consolidated financial statements and related notes as well as the financial and statistical data appearing elsewhere in this report and our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”), filed with the Securities and Exchange Commission on March 5, 2026. Historical results of operations and the percentage relationships among any amounts included, and any trends that may appear, may not indicate results of operations for any future periods.
Previous wording
The Company was formed on August 25, 2020 to serve as the holding company for the Bank, effective March 1, 2021 when the Company acquired the common stock of the Bank. The Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Although we are no longer majority union-owned, the Amalgamated Clothing Workers of America’s successor, Workers United and its affiliates, affiliates of the Service Employees International Union that represents workers in the textile, distribution, food service and gaming industries, remains a significant stockholder, holding approximately 38% of our equity as of June 30, 2026. As of June 30, 2026, our total assets were $9.41 billion, our total loans, net of allowance for credit losses were $5.08 billion, our total deposits were $8.46 billion, and our stockholders' equity was $835.0 million. As of June 30, 2026, our trust business held $39.41 billion in assets under custody and $17.24 billion in assets under management.
Current wording
The Company was formed on August 25, 2020 to serve as the holding company for the Bank, effective March 1, 2021 when the Company acquired the common stock of the Bank. The Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Although we are no longer majority union-owned, the Amalgamated Clothing Workers of America’s successor, Workers United and its affiliates, affiliates of the Service Employees International Union that represents workers in the textile, distribution, food service and gaming industries, remains a significant stockholder, holding approximately 36% of our equity as of September 30, 2026. As of September 30, 2026, our total assets were $9.73 billion, our total loans, net of allowance for credit losses were $5.13 billion, our total deposits were $8.71 billion, and our stockholders' equity was $833.6 million. As of September 30, 2026, our trust business held $37.35 billion in assets under custody and $17.05 billion in assets under management.
Previous wording
Our commercial banking and trust businesses are national in scope and we also offer a full range of products and services to both commercial and retail customers through our branches and offices across New York City, Washington, D.C., Northern California, and Boston and our digital banking platform. Our corporate divisions include Commercial Banking, Trust and Investment Management and Consumer Banking. Our product line includes commercial and industrial ("C&I") loans, commercial real estate ("CRE") loans, multifamily loans, residential mortgage loans through our marketing services agreement with Embrace Home Loans, consumer loans (predominantly residential solar) and a variety of commercial and consumer deposit products, including non-interest-bearing accounts, interest-bearing demand products, savings accounts, money market accounts and certificates of deposit. We also offer online banking and bill payment services, online cash management, safe deposit box rentals, debit card and ATM card services, and the availability of a nationwide network of ATMs for our customers.
Current wording
Our commercial banking and trust businesses are national in scope and we also offer a full range of products and services to both commercial and retail customers through our branches and offices across New York City, Washington, D.C., Northern California, and Boston and our digital banking platform. Our corporate divisions include Commercial Banking, Trust and Investment Management and Consumer Banking. Our active product line includes commercial and industrial ("C&I") loans, commercial real estate ("CRE") loans, multifamily loans, and a variety of commercial and consumer deposit products, including non-interest-bearing accounts, interest-bearing demand products, savings accounts, money market accounts and certificates of deposit. Our loan portfolio also includes residential mortgage loans and consumer loans (predominantly residential solar) which the Bank is not actively originating. We also offer online banking and bill payment services, online cash management, safe deposit box rentals, debit card and ATM card services, and the availability of a nationwide network of ATMs for our customers.
Previous wording
Our goal is to be the go-to financial partner for people and organizations who strive to make a meaningful impact in our society and who care about their communities, the environment, and social justice. The growth of our business is fundamental to our social mission and how we deliver impact and value for our stakeholders. The Company has obtained B Corporation TM certification, a distinction earned after being evaluated under rigorous standards of social and environmental performance, accountability, and transparency. The Company is also the largest of twelve commercial financial institutions in the United States that are members of the Global Alliance for Banking on Values, a network of banking leaders from around the world committed to advancing positive change in the banking sector. We hold governance positions in the United Nations ("UN") convened Net Zero Banking Alliance and the Global Partnership for Carbon Accounting Financials ("PCAF") and an advisory role for the Glasgow Finance Alliance for Net Zero.
Current wording
Our goal is to be the go-to financial partner for people and organizations who strive to make a meaningful impact in our society and who care about their communities, the environment, and social justice. The growth of our business is fundamental to our social mission and how we deliver impact and value for our stakeholders. The Company has obtained B Corporation TM certification, a distinction earned after being evaluated under rigorous standards of social and environmental performance, accountability, and transparency. The Company is also the largest of thirteen commercial financial institutions in the United States that are members of the Global Alliance for Banking on Values, a network of banking leaders from around the world committed to advancing positive change in the banking sector and our leadership serve as Chair of the Partnership for Carbon Accounting Financials ("PCAF"). Amalgamated established its net-zero portfolio targets under the UN Guidelines for Climate Target Setting for Banks, and continue to use recognized climate-target-setting methodologies.
Previous wording
For segments other than the consumer solar loan segment, we calculate the quantitative portion of the allowance for credit losses using the discounted cash flow methodology ("DCF") whereby the amortized cost basis of the loan is compared to the net present value of expected cash flows to be collected. For segments with reserves calculated under the DCF model, a peer group by segment is used to develop periodic default rates, and statistical regression is utilized to relate historical macro-economic variables to historical credit loss experience of that peer group of banks. The DCF model includes a four-quarter reasonable and supportable economic forecast period followed by a four-quarter straight-line reversion to historical loss rates. In addition, the model incorporates assumptions for curtailment rates and recovery lag periods in its calculation of quantitative allowance.
Current wording
For segments other than the consumer solar loan segment, we calculate the quantitative portion of the allowance for credit losses using the discounted cash flow methodology ("DCF") whereby the amortized cost basis of the loan is compared to the net present value of expected cash flows to be collected. For segments with reserves calculated under the DCF model, a peer group by segment is used to develop periodic default rates, and statistical regression is utilized to relate historical macro-economic variables to historical credit loss experience of that peer group of banks. The DCF model includes a four-quarter reasonable and supportable economic forecast period followed by a four-quarter straight-line reversion to historical loss rates. In addition, the model incorporates assumptions for prepayment rates, curtailment rates and recovery lag periods in its calculation of quantitative allowance.
Previous wording
Adjustments to the quantitative results for both DCF and WARM models are made using qualitative factors. These factors include: (1) borrowers' financial condition; (2) borrowers' ability to pay; (3) nature and volume of financial assets; (4) value of the underlying collateral; (5) lending policies and procedures; (6) quality of the loan review system; (7) the experience, ability, and depth of staff; (8) regulatory and legal environment; (9) changes in market conditions; and (10) changes in economic conditions. Factors are weighted based on level of impact and assigned a risk rating that determine the amount of required qualitative reserves. The level of impact and risk ratings are evaluated each quarter.
Current wording
Adjustments to the quantitative results for both DCF and WARM models are made using qualitative factors. These factors include: (1) borrowers' financial condition; (2) borrowers' ability to pay; (3) nature and volume of financial assets; (4) value of the underlying collateral; (5) lending policies and procedures; (6) quality of the loan review system; (7) the experience, ability, and depth of staff; (8) regulatory and legal environment; (9) changes in market conditions; and (10) changes in economic conditions. Factors are weighted based on level of impact and assigned a risk rating that determines the amount of required qualitative reserves. The level of impact and risk ratings are evaluated each quarter.
Previous wording
Net income for the three months ended June 30, 2026 was$34.8 million, or $1.15 per diluted share, compared to$26.0 million, or $0.84 per diluted share, for the three months ended June 30, 2025. The$8.8 million increase was primarily due to an increase in interest and dividend income of $13.1 million, an increase in service charges on deposit accounts of$3.0 million and a decrease of losses on sale of securities and other assets of $1.0 million, partially offset by an increase in compensation and employee benefits of$3.9 million, anincrease in income tax expense of$2.4 million, anincrease in technology expense of$1.9 million and adecrease in other income of$0.1 million.
Current wording
Net income for the three months ended September 30, 2026 was$36.4 million, or $1.20 per diluted share, compared to$26.8 million, or $0.88 per diluted share, for the three months ended September 30, 2025. The$9.6 million increase was primarily due to an increase in interest and dividend income of $10.2 million, an increase in service charges on deposit accounts of$4.0 million, adecrease in provision for credit losses of$1.7 million and a decrease in losses on sale of securities and other assets of $0.8 million, offset by anincrease in income tax expense of$2.9 million, an increase in compensation and employee benefits of$2.4 million and anincrease in technology expense of$1.8 million.
Previous wording
Net income for the six months ended June 30, 2026 was$60.0 million, or $1.99 per diluted share, compared to$51.0 million, or $1.65 per diluted share, for the six months ended June 30, 2025. The$9.0 million increase was primarily due to an increase in interest and dividend income of$21.7 million, an increase in service charges on deposit accounts of$6.7 million, an increase in equity investment income of$3.4 million, offset by anincrease in provision for credit losses of$12.4 million, an increase in compensation and employee benefits of$6.3 million, anincrease in technology expense of$2.9 million, anincrease in other expense of$1.0 million, and anincrease of Federal deposits insurance premium expense of$0.2 million.
Current wording
Net income for the nine months ended September 30, 2026 was$96.4 million, or $3.19 per diluted share, compared to$77.8 million, or $2.53 per diluted share, for the nine months ended September 30, 2025. The$18.6 million increase was primarily due to an increase in interest and dividend income of$31.9 million, an increase in service charges on deposit accounts of$10.7 million, an increase in equity investment income of$2.9 million, adecrease in deposits and borrowed funds expense of $2.3 million, a decrease in losses on sale of securities and other assets of $1.7 million, and anincrease in trust department fees of$0.8 million , offset by anincrease in provision for credit losses of$10.8 million, an increase in compensation and employee benefits of$8.8 million, anincrease in technology expense of$4.7 million, anincrease in income tax expense of $4.4 million, anincrease in other expense of$1.2 million, anincrease in advertising and promotion expense of$1.2 million, and anincrease of federal deposit insurance premium expense of$0.4 million.
Previous wording
(2)Includes prepayment penalty income in 2Q2026 and 2Q2025 of $526 thousand and $200 thousand, respectively.
Current wording
(2)Includes prepayment penalty income in 3Q2026 and 3Q2025 of $409 thousand and $47 thousand, respectively.
Previous wording
Net interest income was$86.1 million for the second quarter of 2026, compared to$72.9 million for the second quarter of 2025. The$13.2 million increase, or 18.1% increase from the second quarter of 2025 was primarily attributable to higher yields and average balances on interest-earning assets, and lower costs on interest bearing liabilities, partially offset by higher average balances on interest-bearing liabilities.
Current wording
Net interest income was$87.9 million for the third quarter of 2026, compared to$76.4 million for the third quarter of 2025. The$11.5 million increase, or 15.0% increase for the third quarter of 2025 was primarily attributable to higher average balances on interest-earning assets, and lower costs on interest bearing liabilities.
Previous wording
The yield on average earning assets was 5.14% for the three months ended June 30, 2026, compared to 5.07% for the same period in 2025, an increase of 7 basis points. This increase was driven primarily by an increase in higher yielding assets such as loans and securities.
Current wording
The yield on average earning assets was 5.14% for the three months ended September 30, 2026, compared to 5.16% for the same period in 2025, a decrease of 2 basis points. This decrease was driven primarily by lower market rates, as well as income recaptured through the payoff of a nonaccrual commercial real estate loan in the third quarter of 2025.
Previous wording
The average rate on interest-bearing liabilities was 2.45% for the three months ended June 30, 2026, a decrease of 18 basis points from the three months ended June 30, 2025, which was primarily due to a decrease in interest rates which leads to lower interest expense paid for deposits. Non-interest-bearing deposits represented 40.2% of average deposits for the three months ended June 30, 2026, compared to 38.2% for the three months ended June 30, 2025.
Current wording
The average rate on interest-bearing liabilities was 2.47% for the three months ended September 30, 2026, a decrease of 18 basis points from the three months ended September 30, 2025, which was primarily due to a decrease in interest rates, which lead to lower interest expense paid for deposits. Non-interest-bearing deposits represented 40.6% of average deposits for the three months ended September 30, 2026, compared to 36.8% for the three months ended September 30, 2025.
Previous wording
(2)Includes prepayment penalty income in 2Q2026 and 2Q2025 of $526 thousand and $200 thousand, respectively.
Current wording
(2)Includes year to date prepayment penalty income as of September 2026 and September 2025 of $984 thousand and $247 thousand, respectively.
Previous wording
Net interest income was$166.2 million for the six months ended June 30, 2026, compared to$143.5 million for the six months ended June 30, 2025. The$22.7 million increase, or 15.8% increase from the six months ended June 30, 2025 was primarily attributable to higher yields and average balances on interest-earning assets, and lower costs on interest bearing liabilities, partially offset by higher average balances on interest-bearing liabilities.
Current wording
Net interest income was$254.2 million for the nine months ended September 30, 2026, compared to$219.9 million for the nine months ended September 30, 2025. The$34.2 million increase, or 15.6% increase for the nine months ended September 30, 2025 was primarily attributable to higher yields and average balances on interest-earning assets, and lower costs on interest bearing liabilities, partially offset by higher average balances on interest-bearing liabilities.
Previous wording
Net interest spread was 2.66% for the six months ended June 30, 2026, compared to 2.43% for the six months ended June 30, 2025, an increase of 23 basis points. Our net interest margin was 3.76% for the six months ended June 30, 2026, an increase of 21 basis points from 3.55% from the six months ended June 30, 2025. This was largely due to increases in yields and a decrease in total cost of funds.
Current wording
Net interest spread was 2.66% for the nine months ended September 30, 2026, compared to 2.46% for the nine months ended September 30, 2025, an increase of 20 basis points. Our net interest margin was 3.77% for the nine months ended September 30, 2026, an increase of 20 basis points from 3.57% for the nine months ended September 30, 2025. The increase was primarily attributable to a decrease in the cost of interest-bearing liabilities and an increase in average balance of non-interest-bearing liabilities.
Previous wording
The yield on average earning assets was 5.13% for the six months ended June 30, 2026, compared to 5.07% for the same period in 2025, an increase of 6 basis points. This increase was driven primarily by an increase in higher yielding assets such as loans and securities.
Current wording
The yield on average earning assets was 5.13% for the nine months ended September 30, 2026, compared to 5.10% for the same period in 2025, an increase of 3 basis points. This increase was driven primarily by an increase in higher yielding assets such as loans and securities.
Previous wording
The average rate on interest-bearing liabilities was 2.47% for the six months ended June 30, 2026, a decrease of 17 basis points from the six months ended June 30, 2025, which was primarily due to a decrease in interest rates which leads to lower interest expense paid for deposits. Non-interest-bearing deposits represented 40.4% of average deposits for the six months ended June 30, 2026, compared to 38.8% for the six months ended June 30, 2025.
Current wording
The average rate on interest-bearing liabilities was 2.47% for the nine months ended September 30, 2026, a decrease of 17 basis points for the nine months ended September 30, 2025, primarily due to lower interest rates, which resulted in lower interest expense paid for deposits. Non-interest-bearing deposits represented 40.5% of average deposits for the nine months ended September 30, 2026, compared to 38.1% for the nine months ended September 30, 2025.
Previous wording
Provision for credit losses was an expense of $4.4 million for the three months ended June 30, 2026 compared to an expense of $4.9 million for the three months ended June 30, 2025. The provision during the current quarter was primarily attributable to charge-offs on our consumer solar and commercial and industrial portfolios, and additional required reserves on the consumer solar portfolio from the ACL model. This was partially offset by reserve releases due to declining balances in the consumer solar loan portfolio as a result of the Company's portfolio runoff strategy.
Current wording
Provision for credit losses was an expense of $3.6 million for the three months ended September 30, 2026 compared to an expense of $5.3 million for the three months ended September 30, 2025. The provision during the current quarter was primarily attributable to charge-offs on our consumer solar portfolio, additional required reserves for the consumer solar portfolio given the elevated risk as a result of delinquencies and continued charge-offs, specific reserves on nonperforming loans, and updated ACL model inputs that are refreshed annually. This was partially offset by improved economic outlook for loan segments utilizing the discounted cash flow methodology.
Previous wording
Provision for credit losses totaled an expense of $17.9 million for the six months ended June 30, 2026 compared to an expense of $5.5 million for the same period in 2025. Overall, the increase in provision for credit losses during the six months ended June 30, 2026 was primarily driven by a $10.3 million increase in specific reserves established or increased on $78.0 million of multifamily loans to a single-borrower after the borrower indicated an expected default during the three months ended March 31, 2026. The remaining provision was attributable to charge-offs on our consumer solar and commercial and industrial portfolios, additional specific reserves on nonperforming loans, and additional required reserves on the consumer solar portfolio from the ACL model. This was partially offset by a reserve release on a construction loan that paid off, reserve releases due to declining balances in the consumer solar loan portfolio as a result of the Company's portfolio runoff strategy, and lower required reserves on C&I loans.
Current wording
Provision for credit losses totaled an expense of $21.5 million for the nine months ended September 30, 2026 compared to an expense of $10.8 million for the same period in 2025. Overall, the increase in provision for credit losses during the nine months ended September 30, 2026 was primarily driven by a $10.3 million increase in specific reserves on $78.0 million of multifamily loans to a single-borrower after the borrower indicated an expected default during the three months ended March 31, 2026. The remaining provision was attributable to charge-offs on our consumer solar and commercial and industrial portfolios, additional required reserves for the consumer solar portfolio given the elevated risk as a result of delinquencies and continued charge-offs, specific reserves on nonperforming loans, and updated ACL model inputs that are refreshed annually. This was partially offset by improved economic outlook for loan segments utilizing the discounted cash flow methodology and a reserve release on a construction loan that paid off.
Previous wording
Non-interest income was$12.3 million for the three months ended June 30, 2026, compared to$8.0 million for the three months ended June 30, 2025. The increase of $4.3 million for thethree months ended June 30, 2026 compared to thethree months ended June 30, 2025 was primarily due to a$3.0 million increase in service charges on deposit accounts primarily due to increases in IntraFi Insured Cash Sweep network ("ICS") One-Way Sell income, a$1.0 million decrease in losses on sale of securities and other assets, and a$0.4 million increase in trust department fees income, offset by a$0.1 million decrease in bank-owned life insurance income.
Current wording
Non-interest income was$13.8 million for the three months ended September 30, 2026, compared to$9.2 million for the three months ended September 30, 2025. The increase of $4.6 million for thethree months ended September 30, 2026 compared to thethree months ended September 30, 2025 was primarily due to a$4.0 million increase in service charges on deposit accounts principally due to increases in IntraFi Insured Cash Sweep network ("ICS") One-Way Sell income, and a$0.8 million decrease in losses on sale of securities and other assets.
Previous wording
June 30, 2025 was primarily due to a$6.7 million increase in service charges on deposit accounts primarily due to increases in ICS One-Way Sell income, a$3.4 million increase in equity investment income, a$0.5 million increase in bank-owned life insurance income, and a$0.4 million increase in trust fees income, partially offset by a$0.9 million decrease in gain on sale of loans and changes in fair value on loans held-for-sale, anda$0.8 million decrease in losses on sale of securities and other assets.
Current wording
Non-interest income was$39.4 million for the nine months ended September 30, 2026, compared to$23.6 million for the nine months ended September 30, 2025. The increase of$15.8 million for thenine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was primarily due to a$10.7 million increase in service charges on deposit accounts principally due to increases in ICS One-Way Sell income, a$2.9 million increase in equity method investments income,$1.7 million decrease in losses on sale of securities and other assets, and a$0.8 million increase in trust fees income.
Previous wording
Non-interest expense for the three months ended June 30, 2026 was $47.3 million, an increase of $6.7 million from $40.6 million for the three months ended June 30, 2025. The increase was driven by a $3.9 million increase in compensation and benefits expense consisting of accruals related to increased performance, as well as for the additional payroll period in 2026, a $1.9 million increase in technology expense related to implementation of key modernization projects, $0.6 million increase in other expenses, and a $0.5 million increase in advertising and promotion expense, partially offset by $0.3 million decrease in professional fees.
Current wording
Non-interest expense for the three months ended September 30, 2026 was $48.9 million, an increase of $5.3 million from $43.6 million for the three months ended September 30, 2025. The increase was driven by a $2.4 million increase in compensation and benefits expense mainly consisting of salaries, as well as for the additional payroll period in 2026, a $1.8 million increase in technology expense, consistent with the ongoing implementation of key infrastructure projects, a $1.2 million increase in occupancy and depreciation expenses related to office and branch relocations, partially offset by $0.6 million decrease in professional fees.
Previous wording
Non-interest expense for the six months ended June 30, 2026 was $93.2 million, an increase of $11.0 million from $82.2 million for the six months ended June 30, 2025. The increase was driven by a $6.3 million increase in compensation and benefits expense consisting of accruals related to increased performance, a $2.9 million increase in technology expense related to implementation of key modernization projects, a $1.0 million increase in other expenses to attract talent and support revenue generation, a $0.9 million increase in occupancy and depreciation expense related to office and branch relocation, a $0.9 million increase in advertising and promotion expense, and $0.2 million increase in federal deposit insurance premium expense, partially offset by $1.3 million decrease in professional fees.
Current wording
Non-interest expense for the nine months ended September 30, 2026 was $142.1 million, an increase of $16.2 million from $125.9 million for the nine months ended September 30, 2025. The increase was driven by a $8.8 million increase in compensation and benefits expense mainly consisting of salaries and temporary expenses related to technology implementation, as well as for the additional payroll period in 2026, a $4.7 million increase in technology expense, consistent with the ongoing implementation of key infrastructure projects, a $2.2 million increase in occupancy and depreciation expense related to office and branch relocation, a $1.2 million increase in advertising and promotion expense, and a $1.2 million increase in other expense, partially offset by a $1.9 million decrease in professional fees.
Previous wording
We had a provision for income tax expense of $11.9 million for the three months ended June 30, 2026, compared to $9.5 million for the three months ended June 30, 2025. Our effective tax rate for the three months ended June 30, 2026 was 25.4% compared to 26.7% for the three months ended June 30, 2025. The decrease in the effective tax rate for three months ended June 30, 2026 is primarily driven by a recognition of a $0.5 million solar tax credit purchased in the quarter.
Current wording
We had a provision for income tax expense of $12.8 million for the three months ended September 30, 2026, compared to $9.9 million for the three months ended September 30, 2025. Our effective tax rate for the three months ended September 30, 2026 was 26.0% compared to 27.0% for the three months ended September 30, 2025. The decrease in the effective tax rate for three months ended September 30, 2026 is primarily driven by a recognition of a $0.6 million solar tax credit purchased in the quarter.
Previous wording
We had a provision for income tax expense of $20.7 million for the six months ended June 30, 2026, compared to $19.2 million for the six months ended June 30, 2025. Our effective tax rate for the six months ended June 30, 2026 was 25.7% compared to
Current wording
We had a provision for income tax expense of $33.5 million for the nine months ended September 30, 2026, compared to $29.1 million for the nine months ended September 30, 2025. Our effective tax rate for the nine months ended September 30, 2026 was
Previous wording
27.3% for the six months ended June 30, 2025. The decrease in the effective tax rate for six months ended June 30, 2026 is primarily driven by additional discrete tax liabilities in the six months ended June 30, 2025 related to a city and state tax examination, which was resolved in 2025, and by a recognition of a $0.5 million solar tax credit purchased in 2026.
Current wording
25.8% compared to 27.2% for the nine months ended September 30, 2025. The decrease in the effective tax rate for nine months ended September 30, 2026 is primarily driven by additional discrete tax liabilities in the nine months ended September 30, 2025 related to a city and state tax examination, which was resolved in 2025, and by a recognition of $1.1 million in solar tax credits purchased in 2026.
Previous wording
Our total assets were $9.41 billion at June 30, 2026, compared to $8.87 billion at December 31, 2025. Notable changes within individual balance sheet line items include a $509.2 million increase in deposits, a $474.8 million increase in securities, a $180.4 million increase in net loans receivable, a $123.4 million decrease in cash, and a $10.6 million increase in resell agreements.
Current wording
Our total assets were $9.73 billion at September 30, 2026, compared to $8.87 billion at December 31, 2025. Notable changes within individual balance sheet line items include a $564.8 million increase in securities, a $231.2 million increase in net loans receivable, a $50.3 million increase in right-of-use lease asset, a $36.2 million increase in net premises and equipment, a $28.7 million decrease in cash, and a $14.6 million increase in resell agreements.
Previous wording
Our available for sale securities portfolio consists of residential PACE assessments, AB securities, GSE commercial and residential certificates and other debt securities. All available for sale securities are carried at fair value and may be used for liquidity purposes should management consider it to be in our best interest. At June 30, 2026 and December 31, 2025, we had available for sale securities of $2.24 billion and $1.78 billion, respectively.
Current wording
Our available for sale securities portfolio consists of residential PACE assessments, GSE and Non-GSE certificates, CMOs, ABS securities, and other debt securities, such as corporate bonds and U.S. treasuries. All available for sale securities are carried at fair value and may be used for liquidity purposes should management consider it to be in our best interest. At September 30, 2026 and December 31, 2025, we had available for sale securities with a fair value of $2.28 billion and $1.78 billion, respectively.
Previous wording
Our held-to-maturity securities portfolio primarily consists of PACE assessments, tax-exempt municipal securities, GSE commercial and residential certificates and other debt. We carry these securities at amortized cost. We had held-to-maturity securities of $1.57 billion at June 30, 2026, and $1.55 billion at December 31, 2025.
Current wording
Our held-to-maturity securities portfolio primarily consists of PACE assessments, tax-exempt municipal securities, GSE and non-GSE certificates, CMOs, ABS securities, and other debt securities, such as municipal and corporate bonds. We carry these securities at amortized cost. We had held-to-maturity securities with an amortized cost of $1.63 billion at September 30, 2026, and $1.55 billion at December 31, 2025.
Previous wording
During the six months ended June 30, 2026 we purchased a total of $890.6 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $135.2 million and a net realized loss of $0.9 million as part of normal and ongoing balance sheet management. During the six months ended June 30, 2025 we purchased a total of $508.5 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $56.1 million and a net realized loss of $1.7 million as part of routine and ongoing balance sheet management.
Current wording
During the nine months ended September 30, 2026 we purchased a total of $1.20 billion securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $185.5 million and a net realized loss of $1.3 million as part of normal and ongoing balance sheet management. During the nine months ended September 30, 2025 we purchased a total of $826.7 million securities consisting of both available for sale and held-to-maturity, and sold available for sale securities resulting in proceeds of $120.2 million and a net realized loss of $2.9 million as part of routine and ongoing balance sheet management.
Previous wording
Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on held-to-maturity debt securities totaled $23.7 million at June 30, 2026 and $29.8 million at December 31, 2025, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status. The allowance for credit losses for held-to-maturity securities at June 30, 2026 was $0.8 million compared to $0.7 million at December 31, 2025. The provision for credit losses for held-to-maturity securities was an expense of $38.0 thousand for the three months ended June 30, 2026 and $43.0 thousand for the six months ended June 30, 2026, compared to an expense of $3.0 thousand for the three months ended June 30, 2025 and an immaterial recovery for the six months June 30, 2025.
Current wording
Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. Accrued interest receivable on held-to-maturity debt securities totaled $25.0 million at September 30, 2026 and $29.8 million at December 31, 2025, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status. The allowance for credit losses for held-to-maturity securities at September 30, 2026 was $0.8 million compared to $0.7 million at December 31, 2025. The provision for credit losses for held-to-maturity securities was an expense of $59.0 thousand for the three months ended September 30, 2026 and $102.0 thousand for the nine months ended September 30, 2026, compared to an expense of $10.0 thousand for the three months ended September 30, 2025 and an immaterial recovery for the nine months September 30, 2025.
Previous wording
Accrued interest receivable on available-for-sale debt securities totaled $15.9 million at June 30, 2026 and $11.8 million at December 31, 2025, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status.
Current wording
Accrued interest receivable on available-for-sale debt securities totaled $15.1 million at September 30, 2026 and $11.8 million at December 31, 2025, and is excluded from the estimate of credit losses, as accrued interest receivable is reversed for securities placed on nonaccrual status.
Previous wording
As of June 30, 2026, approximately 58.8% of our securities portfolio is classified as “available for sale.” Our securities portfolio has a weighted average yield of 4.98% and an estimated weighted average life of 5.4 years. In total, our securities portfolio including FHLBNY stock represented 40.5% of total interest-earning assets as of June 30, 2026.
Current wording
As of September 30, 2026, approximately 58.3% of our securities portfolio is classified as “available for sale.” Our securities portfolio has a weighted average yield of 5.10% and an estimated weighted average life of 5.6 years. In total, our securities portfolio including FHLBNY stock represented 40.1% of total interest-earning assets as of September 30, 2026.
Previous wording
The following table show contractual maturities and yields for the available-for sale and held-to-maturity securities portfolios:
Current wording
The following table shows contractual maturities and yields for the available-for sale and held-to-maturity securities portfolios:
Previous wording
Our securities portfolio primarily consists of high quality investments in mortgage-backed securities to government sponsored entities and other asset-backed securities and PACE assessments. All non-agency securities, composed of non-agency commercial mortgage-backed securities, collateralized loan obligations, non-agency mortgage-backed securities, and asset-backed securities, are senior tranche and approximately 89.0% carry AAA credit ratings and 11.0% carry A credit ratings or higher.
Current wording
Our securities portfolio primarily consists of high quality investments in mortgage-backed securities to government sponsored entities and other asset-backed securities and PACE assessments. All non-agency securities, composed of non-agency commercial mortgage-backed securities, collateralized loan obligations, non-agency mortgage-backed securities, and asset-backed securities, are senior tranche and approximately 89.8% carry AAA credit ratings and 10.2% carry A credit ratings or higher.
Previous wording
Lending-related income is the most important component of our net interest income and is the main driver of our results of operations. Total loans, net of deferred origination fees and costs, and allowance for credit losses, were $5.08 billion as of June 30, 2026 compared to $4.90 billion as of December 31, 2025. Within our commercial loan portfolio, our primary focus has been on C&I, multifamily and CRE lending. We intend to focus any organic growth in our loan portfolio on these lending areas as part of our strategic plan.
Current wording
Lending-related income is the most important component of our net interest income and is the main driver of our results of operations. Total loans, net of deferred origination fees and costs, and allowance for credit losses, were $5.13 billion as of September 30, 2026 compared to $4.90 billion as of December 31, 2025. Within our commercial loan portfolio, our primary focus has been on C&I, multifamily and CRE lending. We intend to focus any organic growth in our loan portfolio on these lending areas as part of our strategic plan.
Previous wording
Our commercial loan portfolio comprised 70.3% of our total loan portfolio at June 30, 2026 and 67.9% of our total loan portfolio at December 31, 2025. The major categories of our commercial loan portfolio are discussed below:
Current wording
Our commercial loan portfolio comprised 71.4% of our total loan portfolio at September 30, 2026 and 67.9% of our total loan portfolio at December 31, 2025. The major categories of our commercial loan portfolio are discussed below:
Previous wording
C&I. Our C&I loans are generally made to small and medium-sized manufacturers and wholesale, retail and service-based businesses to provide either working capital or to finance major capital expenditures. In addition, our C&I portfolio includes commercial solar financings; for many of these we are the sole lender, while for some others we are either the lead bank or are a participant in a syndicated credit facility led by another institution. The primary source of repayment for C&I loans is generally operating cash flows of the business or project. We also seek to minimize risks related to these loans by requiring such loans to be collateralized by various business assets (including inventory, equipment, accounts receivable, and the assignment of contracts that generate cash flow). The average size of our C&I loans at June 30, 2026 by exposure was $4.3 million with a median size of $0.9 million. Our lending strategy focuses on developing full customer relationships including deposits, cash management, and lending. The businesses that we focus on are generally mission aligned with our core values, including organic and natural products, sustainable companies, clean energy, nonprofits, and B Corporations TM.
Current wording
C&I. Our C&I loans are generally made to small and medium-sized manufacturers and wholesale, retail and service-based businesses to provide either working capital or to finance major capital expenditures. In addition, our C&I portfolio includes commercial solar financings; for many of these we are the sole lender, while for some others we are either the lead bank or are a participant in a syndicated credit facility led by another institution. The primary source of repayment for C&I loans is generally operating cash flows of the business or project. We also seek to minimize risks related to these loans by requiring such loans to be collateralized by various business assets (including inventory, equipment, accounts receivable, and the assignment of contracts that generate cash flow). The average size of our C&I loans at September 30, 2026 by exposure was $4.1 million with a median size of $0.8 million. Our lending strategy focuses on developing full customer relationships including deposits, cash management, and lending. The businesses that we focus on are generally mission aligned with our core values, including organic and natural products, sustainable companies, clean energy, nonprofits, and B Corporations TM.
Previous wording
Our C&I loans totaled $1.31 billion at June 30, 2026, which comprised 25.4% of our total loan portfolio. During the six months ended June 30, 2026, the C&I loan portfolio decreased by 2.1% from $1.33 billion at December 31, 2025.
Current wording
Our C&I loans totaled $1.36 billion at September 30, 2026, which comprised 26.2% of our total loan portfolio. During the nine months ended September 30, 2026, the C&I loan portfolio increased by 2.1% from $1.33 billion at December 31, 2025.
Previous wording
Multifamily. Our multifamily loans are generally used to purchase or refinance apartment buildings of five units or more, which collateralize the loan, in major metropolitan areas within our markets. Multifamily loans have 65% of their exposure in New York City. Our multifamily loans have been underwritten under stringent guidelines on loan-to-value and debt service coverage ratios that are designed to mitigate credit and concentration risk in this loan category. The average current LTV, based on underwriting appraisal value, of our multifamily loans is approximately 55%.
Current wording
Multifamily. Our multifamily loans are generally used to purchase or refinance apartment buildings of five units or more, which collateralize the loan, in major metropolitan areas within our markets. Multifamily loans have 68% of their exposure in New York City. Our multifamily loans have been underwritten under stringent guidelines on loan-to-value and debt service coverage ratios that are designed to mitigate credit and concentration risk in this loan category. The average current LTV, based on underwriting appraisal value, of our multifamily loans is approximately 56%.
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0.34 per outstanding share, a $8.7 million increase in accumulated other comprehensive loss due to the tax effected mark-to-market adjustment on our securities portfolio, and $2.8 million of common stock repurchases.