Amalgamated Financial (NASDAQ:AMAL) Issues Earnings Results, Beats Expectations By $0.06 EPS

Amalgamated Financial (NASDAQ:AMAL) posted its quarterly earnings results on Thursday. The company reported $1.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.08 by $0.06, FiscalAI reports. The firm had revenue of $99.17 million during the quarter, compared to analyst estimates of $99.26 million. Amalgamated Financial had a net margin of 24.57% and a return on equity of 15.00%.

Here are the key takeaways from Amalgamated Financial’s conference call:

• Record third-quarter results: Core net income reached $34.6 million, or $1.14 per diluted share, while net revenue exceeded $100 million for the first time. Core ROAA rose to 1.44% and core ROTCE to 16.57%, with the efficiency ratio holding near 49%.
• Management raised its full-year outlook for net interest income to $341 million–$342 million and core pre-tax, pre-provision earnings to $193 million–$194 million, citing strong third-quarter performance and favorable earnings momentum.
• The bank is reallocating capital toward higher-return assets, including PACE, where balances grew by $54.2 million and new originations carried yields around 7% with potential to approach 8% in 2027. Management is considering accelerating runoff of the lower-performing consumer solar portfolio.
• Management expects fourth-quarter net interest income to be roughly flat and margins to compress modestly as election-related, low-cost demand deposits run off and are replaced by interest-bearing funding. Political deposits had already declined from approximately $2 billion at quarter-end to $1.7 billion by October 15.
• Credit quality remains broadly stable, but the previously disclosed troubled Washington, D.C., multifamily relationship has not yet reached a resolution. Management continues to anticipate approximately $5 million–$5.5 million of provision expense in the fourth quarter and is exploring a potential note sale.

Amalgamated Financial Price Performance

Amalgamated Financial stock traded up $0.19 during trading hours on Friday, hitting $50.50. 261,073 shares of the stock were exchanged, compared to its average volume of 263,473. The company has a debt-to-equity ratio of 0.08, a quick ratio of 0.63 and a current ratio of 0.64. The stock has a market capitalization of $1.51 billion, a P/E ratio of 12.41 and a beta of 0.81. Amalgamated Financial has a 12 month low of $26.61 and a 12 month high of $51.59. The business’s 50-day moving average is $47.96 and its two-hundred day moving average is $45.67.

Amalgamated Financial Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Tuesday, November 3rd will be given a $0.17 dividend. The ex-dividend date is Tuesday, November 3rd. This represents a $0.68 dividend on an annualized basis and a yield of 1.3%. Amalgamated Financial’s payout ratio is 18.13%.

Insider Activity at Amalgamated Financial

In other Amalgamated Financial news, major shareholder States Regional Joint Western sold 234,128 shares of the stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $47.88, for a total transaction of $11,210,048.64. Following the sale, the insider owned 399,567 shares of the company’s stock, valued at $19,131,267.96. This represents a 36.95% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, major shareholder United Workers sold 234,128 shares of the firm’s stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $47.88, for a total transaction of $11,210,048.64. Following the completion of the sale, the insider owned 399,567 shares of the company’s stock, valued at $19,131,267.96. The trade was a 36.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,724,705 shares of company stock worth $83,009,328 over the last three months. 1.63% of the stock is owned by company insiders.

Key Stories Impacting Amalgamated Financial

Here are the key news stories impacting Amalgamated Financial this week:

• Positive Sentiment: Third-quarter EPS was $1.14, exceeding the $1.08 analyst consensus and rising from $0.91 a year earlier. Net income reached $36.4 million, with the company reporting record earnings, a 23.34% net margin and 14.30% return on equity. Third-quarter financial results
• Positive Sentiment: Management forecast 2026 net interest income of approximately $341 million to $342 million, suggesting continued earnings power despite changes in the deposit and business mix associated with election-related activity. Net interest income forecast
• Neutral Sentiment: Quarterly revenue was $99.17 million, essentially in line with but slightly below the $99.26 million consensus estimate. The earnings beat therefore appears driven more by profitability and expense or margin performance than by stronger-than-expected top-line growth. Earnings and revenue results
• Negative Sentiment: A reported $78 million problem loan is an important risk for investors. While it did not prevent the quarterly earnings beat, deterioration in this loan could increase provisions, weaken future earnings or raise concerns about credit quality. Problem loan analysis

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on AMAL shares. Keefe, Bruyette & Woods lifted their price objective on Amalgamated Financial from $53.00 to $54.00 and gave the company an “outperform” rating in a report on Friday, July 24th. Raymond James Financial initiated coverage on Amalgamated Financial in a report on Thursday, September 3rd. They issued an “outperform” rating and a $55.00 target price for the company. Piper Sandler raised their target price on Amalgamated Financial from $48.00 to $53.00 and gave the stock a “neutral” rating in a research report on Monday, July 27th. Finally, Weiss Ratings raised Amalgamated Financial from a “buy (b)” rating to a “buy (b+)” rating in a research note on Friday, October 9th. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Amalgamated Financial presently has an average rating of “Moderate Buy” and a consensus target price of $54.00.

About Amalgamated Financial

Amalgamated Financial Corporation (NASDAQ:AMAL) is the parent company of Amalgamated Bank, a commercial bank that provides banking, lending and financial services to businesses, nonprofit organizations, labor unions, political organizations and individual consumers. The bank is known for serving mission-driven and socially responsible organizations, as well as customers seeking conventional banking products.

Amalgamated Bank offers commercial and consumer deposits, commercial and real estate lending, treasury management, online and mobile banking, payment services, and investment management.