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Amalgamated Bank (AMAL)
NASDAQ:AMAL
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Amalgamated Bank
(NASDAQ:AMAL)
73Outperform
Amalgamated Bank (AMAL) vs. S&P 500 (SPY)
Market Cap
$882.26M
Dividend Yield1.74%
Average Volume (3M)285.68K
Price to Earnings (P/E)8.4
Beta (1Y)1.20
Revenue Growth14.24%
EPS Growth20.84%
CountryUS
Employees429
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.45
Shares Outstanding30,687,353
10 Day Avg. Volume237,117
30 Day Avg. Volume285,682
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)N/A
Price to Sales (P/S)2.83
Price to Cash Flow (P/CF)7.70
P/FCF Ratio4.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$41.50Price Target Upside43.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Amalgamated Bank Business Overview & Revenue Model
Company DescriptionAmalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; and retail loans, such as residential real estate, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. The company operates through its three branch offices across New York City, one branch office in Washington, D.C., one branch office in San Francisco, one commercial office in Boston, and digital banking platform. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.
How the Company Makes MoneyAmalgamated Bank primarily generates revenue through interest income from loans and investment securities, as well as non-interest income from fees and service charges. The bank's interest income is driven by the spread between the interest it pays on deposits and the interest it earns on loans and investments. Non-interest income includes fees from account maintenance, transaction processing, and other banking services. Amalgamated Bank also engages in partnerships with organizations that share its commitment to social responsibility, which helps in attracting a client base aligned with its values. Additionally, the bank invests in community development projects, which can yield financial returns while supporting its mission-driven objectives.
Amalgamated Bank Financial Statement Overview
Summary
Amalgamated Bank demonstrates strong financial performance with significant revenue growth, a robust balance sheet, and prudent financial management. The zero-debt position and effective equity utilization are notable strengths, though the volatility in investing cash flow warrants monitoring.Income Statement
Amalgamated Bank shows a robust revenue growth of 46.2% from 2023 to 2024, indicating strong business expansion. The gross profit margin remains consistent, reflecting efficient cost management. However, the net profit margin of 26.5% suggests room for improvement in operational efficiency to convert revenue into profit.78
Positive
Balance Sheet
The balance sheet is strong with a high equity ratio of 8.6%, indicating financial stability. The absence of debt in 2024 enhances the company's leverage position, reducing the financial risk. The return on equity of 15% in 2024 signifies effective use of shareholders' equity to generate profits.85
Very Positive
Cash Flow
Operating cash flow shows a steady increase, supporting the company's liquidity position. The free cash flow to net income ratio is favorable, indicating good cash generation relative to net income. However, the volatile investing cash flow could suggest substantial capital investments or asset sales.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 401.30M | 274.58M | 266.51M | 202.54M | 213.21M | Gross Profit |
| 401.30M | 274.58M | 266.51M | 202.54M | 213.21M | EBIT |
| 387.61M | 0.00 | 126.81M | 70.72M | 61.94M | EBITDA |
| 0.00 | 0.00 | 112.76M | 75.57M | 69.51M | Net Income Common Stockholders |
| 106.43M | 87.98M | 81.48M | 52.94M | 46.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.04M | 90.17M | 1.88B | 2.44B | 1.58B | Total Assets |
| 8.26B | 7.97B | 7.84B | 7.08B | 5.98B | Total Debt |
| 334.14M | 335.57M | 698.49M | 133.16M | 53.17M | Net Debt |
| 273.39M | 245.00M | 634.95M | -197.32M | 14.40M | Total Liabilities |
| 7.55B | 7.39B | 7.33B | 133.16M | 53.17M | Stockholders Equity |
| 707.65M | 585.23M | 508.82M | 563.74M | 535.69M |
| Cash Flow | Free Cash Flow | |||
| 124.06M | 115.75M | 145.65M | 68.14M | 64.16M | Operating Cash Flow |
| 124.06M | 117.22M | 147.32M | 70.54M | 65.77M | Investing Cash Flow |
| -315.95M | -134.41M | -1.20B | -865.41M | -755.14M | Financing Cash Flow |
| 162.06M | 44.21M | 788.22M | 1.09B | 605.60M |
Amalgamated Bank Technical Analysis
Negative
28.97
Price Trends
32.17
Negative
33.55
Negative
31.89
Negative
Market Momentum
-0.91
Negative
35.05
Neutral
24.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMAL, the sentiment is Negative. The current price of 28.97 is below the 20-day moving average (MA) of 29.18, below the 50-day MA of 32.17, and below the 200-day MA of 31.89, indicating a bearish trend. The MACD of -0.91 indicates Negative momentum. The RSI at 35.05 is Neutral, neither overbought nor oversold. The STOCH value of 24.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMAL.
Amalgamated Bank Risk Analysis
Amalgamated Bank disclosed 50 risk factors in its most recent earnings report. Amalgamated Bank reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amalgamated Bank Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.61B | 14.06 | 10.38% | 2.71% | 8.83% | 3.77% | |
73 Outperform | $882.26M | 8.36 | 16.46% | 1.74% | 14.24% | 20.84% | |
70 Outperform | $3.65B | 17.07 | 14.16% | 1.62% | 12.93% | 1.40% | |
67 Neutral | $2.74B | 19.94 | 9.73% | 4.06% | 4.63% | -16.29% | |
65 Neutral | $2.58B | 16.96 | 4.39% | 4.09% | 6.86% | -12.06% | |
63 Neutral | $14.35B | 9.94 | 8.94% | 4.37% | 16.34% | -11.76% | |
62 Neutral | $3.30B | 11.51 | 9.69% | 3.81% | 21.10% | -4.20% |
* Financial Sector Average
Performance Comparison
AMAL
Amalgamated Bank
28.97
6.29
27.73%
BANF
BancFirst
109.66
26.42
31.74%
BOH
Bank Of Hawaii
69.50
12.25
21.40%
FULT
Fulton Financial
17.94
3.25
22.12%
HOMB
Home Bancshares
28.38
5.40
23.50%
SFNC
Simmons 1st Nat'l
20.39
2.38
13.21%
Amalgamated Bank Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -20.52% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record earnings, increased deposits, and improved margins, despite challenges like political deposit declines and criticized asset increases. The bank's strategic investments and conservative risk management position it well for future growth.Highlights
Near-Record Core Earnings Per Share
Amalgamated posted a near-record quarter with $0.90 core earnings per share, showcasing strong earnings and profitability.
Significant Growth in Political Deposits
Ending political deposits were $326 million or 50.6% higher than the previous election cycle, totaling nearly $1 billion.
Record Full-Year Earnings
For the full year, Amalgamated delivered record earnings of $106.4 million, driven by strong loan growth and expanding margins.
Positive Deposit Growth
Total deposits, excluding brokered CDs, increased by $410.8 million or over 6% in a year where many banks faced negative deposit growth.
Improved Capital Position
Amalgamated built capital throughout the year, positioning it to reinvest in the business and return capital to shareholders.
Increase in Net Interest Margin
Net interest margin increased to 3.59% despite deposit remixing, with a notable 8 basis point increase from the previous quarter.
Lowlights
Decline in Political Deposit Balances
A large but expected decline in political deposit balances was noted, although the bank beat expectations with $1 million of net interest income growth.
Criticized Assets Increase
Total criticized assets modestly increased by $7.3 million to $95.9 million, primarily due to downgrades in four commercial and industrial loans.
Restructuring Losses
The bank marked and moved to held for sale another $32 million of performing residential loans at a $4 million pre-tax loss.
Company Guidance
During the Amalgamated Financial Fourth Quarter and Full-Year 2024 Earnings Conference Call, guidance for 2025 was outlined with a focus on strategic growth and investment. The company aims for 2% quarterly loan growth, facilitated by shrinking the securities portfolio, and plans to enhance its commercial and industrial lending business. Full-year 2025 guidance includes core pre-tax pre-provision earnings of $159 million to $163 million and net interest income of $293 million to $297 million, accounting for potential interest rate cuts. The bank plans to invest approximately $170 million in expenses, a 6% increase from 2024, to support technology and sales initiatives. Additionally, Amalgamated is targeting a quarterly 20% to 25% total payout ratio, including dividends and share repurchases, amidst a strong capital position with a CET1 ratio of 13.9%. The 2025 strategy also emphasizes sustainable lending growth, with expectations for $150 million in net PACE lending and a balanced loan portfolio to maintain conservative commercial real estate concentrations.Amalgamated Bank Corporate Events
Executive/Board Changes
Amalgamated Bank Updates Executive Employment Agreement
Neutral
Feb 27, 2025
On February 24, 2025, Amalgamated Bank entered into an Amended & Restated Employment Agreement with Sean Searby, the Executive Vice President and Chief Information and Operations Officer. The agreement, which updates the terms from August 24, 2022, extends for a term of thirty-six months and includes provisions for automatic annual renewals unless notice is given. Mr. Searby’s compensation includes a base salary of $420,000, potential bonuses, and equity incentives, with specific terms for severance payments in the event of termination. The agreement also includes confidentiality, non-competition, and non-solicitation clauses.
Financial Disclosures
Amalgamated Bank Reports Strong 2024 Financial Results
Positive
Jan 23, 2025
On January 23, 2025, Amalgamated Financial Corp. announced its fourth quarter and full year 2024 financial results, showcasing solid loan growth and an increase in net interest margin to 3.59%. Despite a decrease in political deposits following an Election Cycle Conclusion, the company demonstrated strong financial performance with a net income of $24.5 million for the quarter and $106.4 million for the year. This performance was characterized by stable nonperforming assets, improved capital ratios, and strategic management of deposits and loans, positioning the company to capitalize on future opportunities.
Dividends
Amalgamated Bank Announces 17% Dividend Increase
Positive
Jan 22, 2025
On January 22, 2025, Amalgamated Financial Corp. announced a 17% increase in its quarterly dividend, raising it by $0.02 to $0.14 per share. This decision reflects the company’s robust financial position and commitment to providing shareholder returns, with the dividend payable on February 27, 2025, to shareholders recorded by February 11, 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.