Socially responsible bank Amalgamated Financial (NASDAQ:AMAL) reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 17.3% year on year to $93.44 million. Its non-GAAP profit of $0.80 per share was 15.8% below analysts’ consensus estimates.
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Amalgamated Financial (AMAL) Q1 CY2026 Highlights:
- Net Interest Income: $80.16 million vs analyst estimates of $79.01 million (13.6% year-on-year growth, 1.5% beat)
- Net Interest Margin: 3.8% vs analyst estimates of 3.7% (7 basis point beat)
- Revenue: $93.44 million vs analyst estimates of $89.38 million (17.3% year-on-year growth, 4.5% beat)
- Efficiency Ratio: 49.1% vs analyst estimates of 51.9% (279 basis point beat)
- Adjusted EPS: $0.80 vs analyst expectations of $0.95 (15.8% miss)
- Tangible Book Value per Share: $26.59 vs analyst estimates of $26.96 (13.1% year-on-year growth, 1.4% miss)
- Market Capitalization: $1.26 billion
Priscilla Sims Brown, President and Chief Executive Officer, commented, “Overall, we delivered a very strong first quarter that underscores the strength of our balance sheet and purpose-driven model. We grew net revenue to $93.4 million, expanded net interest margin 9 basis points to 3.75%, increased on-balance sheet deposits to $8.2 billion, and maintained strong Tier 1 capital at above 9.3%. Included in our results was an incremental $9.2 million provision tied to a single-borrower multifamily relationship that moved to nonaccrual during the quarter. We believe the underlying collateral supports our position and we are aggressively pursuing resolution options to preserve and maximize value. We view this as an isolated event with one borrower, which does not change our performance outlook. With the momentum we saw in the quarter, we are focused on executing and delivering on our revenue and earnings targets over the balance of the year.”
Company Overview
Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Thankfully, Amalgamated Financial’s 11.7% annualized revenue growth over the last five years was decent. Its growth was slightly above the average banking company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Amalgamated Financial’s recent performance shows its demand has slowed as its annualized revenue growth of 8.9% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Amalgamated Financial reported year-on-year revenue growth of 17.3%, and its $93.44 million of revenue exceeded Wall Street’s estimates by 4.5%.
Net interest income made up 88.2% of the company’s total revenue during the last five years, meaning Amalgamated Financial barely relies on non-interest income to drive its overall growth.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
Amalgamated Financial’s TBVPS grew at an exceptional 9.7% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 16.1% annually over the last two years from $19.73 to $26.59 per share.
Over the next 12 months, Consensus estimates call for Amalgamated Financial’s TBVPS to grow by 14.8% to $30.52, decent growth rate.
Key Takeaways from Amalgamated Financial’s Q1 Results
We enjoyed seeing Amalgamated Financial beat analysts’ revenue expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates. On the other hand, its EPS missed and its tangible book value per share fell slightly short of Wall Street’s estimates. Overall, this was a mixed quarter. The stock remained flat at $42.15 immediately after reporting.
So should you invest in Amalgamated Financial right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).