Socially responsible bank Amalgamated Financial (NASDAQ: AMAL) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 19.7% year on year to $98.36 million. Its non-GAAP profit of $1.10 per share was 10% above analysts’ consensus estimates.
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Amalgamated Financial (AMAL) Q2 CY2026 Highlights:
- Net Interest Income: $86.06 million vs analyst estimates of $82.15 million (18% year-on-year growth, 4.8% beat)
- Net Interest Margin: 3.8% vs analyst estimates of 3.7% (6 basis point beat)
- Revenue: $98.36 million vs analyst estimates of $92.06 million (19.7% year-on-year growth, 6.8% beat)
- Efficiency Ratio: 48.1% vs analyst estimates of 51% (290 basis point beat)
- Adjusted EPS: $1.10 vs analyst estimates of $1 (10% beat)
- Tangible Book Value per Share: $27.47 vs analyst estimates of $27.41 (12.9% year-on-year growth, in line)
- Market Capitalization: $1.40 billion
Priscilla Sims Brown, President and Chief Executive Officer, commented, “This quarter showcases the power of the franchise we have built. With the strongest balance sheet in our history and one of the most differentiated deposit franchises in banking, we are successfully converting balance sheet growth into record earnings, record profitability, and a scalable platform for future performance.”
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
Net interest income and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Luckily, Amalgamated Financial’s revenue grew at a solid 13.2% compounded annual growth rate over the last five years. Its growth beat the average banking company and shows its offerings resonate with customers, a helpful starting point for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Amalgamated Financial’s recent performance shows its demand has slowed as its annualized revenue growth of 9.9% 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 because they were 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 19.7%, and its $98.36 million of revenue exceeded Wall Street’s estimates by 6.8%.
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.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
Amalgamated Financial’s TBVPS grew at an exceptional 10% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 15.5% annually over the last two years from $20.61 to $27.47 per share.
Over the next 12 months, Consensus estimates call for Amalgamated Financial’s TBVPS to grow by 13% to $31.05, decent growth rate.
Key Takeaways from Amalgamated Financial’s Q2 Results
We liked that Amalgamated Financial beat analysts’ revenue expectations this quarter. We were also glad its net interest income outperformed Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The stock remained flat at $46.96 immediately following the results.
So do we think Amalgamated Financial is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
