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Amalgamated Bank (AMAL)
NASDAQ:AMAL
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Amalgamated Bank
(NASDAQ:AMAL)
76Outperform
Amalgamated Bank (AMAL) vs. S&P 500 (SPY)
Market Cap
$850.35M
Dividend Yield1.78%
Average Volume (3M)267.43K
Price to Earnings (P/E)8.2
Beta (1Y)1.08
Revenue Growth10.80%
EPS Growth10.48%
CountryUS
Employees429
SectorFinancial
Sector Strength83
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.37
Shares Outstanding30,687,353
10 Day Avg. Volume250,141
30 Day Avg. Volume267,426
Financial Highlights & Ratios
PEG Ratio0.78
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
$38.50Price Target Upside37.70% 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
Neutral
27.96
Price Trends
29.58
Negative
32.06
Negative
31.99
Negative
Market Momentum
-0.56
Negative
50.41
Neutral
61.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMAL, the sentiment is Neutral. The current price of 27.96 is above the 20-day moving average (MA) of 27.17, below the 50-day MA of 29.58, and below the 200-day MA of 31.99, indicating a neutral trend. The MACD of -0.56 indicates Negative momentum. The RSI at 50.41 is Neutral, neither overbought nor oversold. The STOCH value of 61.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $850.35M | 8.22 | 15.41% | 1.78% | 10.80% | 10.48% | |
74 Outperform | $883.73M | 10.31 | 11.54% | 3.79% | 12.34% | 10.88% | |
71 Outperform | $861.34M | 12.40 | 6.21% | 3.16% | 2.27% | -2.41% | |
71 Outperform | $862.10M | 9.84 | 11.16% | 5.02% | 15.33% | 3.68% | |
70 Neutral | $840.47M | 11.01 | 8.93% | 2.86% | 7.17% | 12.20% | |
63 Neutral | $12.32B | 9.52 | 7.97% | 79.23% | 12.77% | -4.57% | |
56 Neutral | $860.99M | 12.01 | 10.25% | 4.17% | 41.65% | 668.73% |
* Financial Sector Average
Performance Comparison
AMAL
Amalgamated Bank
27.96
4.04
16.89%
SBSI
Southside Bancshares
28.35
2.42
9.33%
TMP
Tompkins Financial Corporation
59.22
16.22
37.72%
UVSP
Univest Of Pennsylvania
28.98
8.31
40.20%
CTBI
Community Bancorp
48.82
8.38
20.72%
CNOB
ConnectOne Bancorp
22.39
4.68
26.43%
Amalgamated Bank Earnings Call Summary
Earnings Call Date: Apr 24, 2025 | % Change Since: -0.53% | Next Earnings Date: Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced outlook, with strong deposit growth, solid net interest income, and robust capital returns highlighting the quarter. However, challenges such as an increase in nonperforming assets, higher professional fees, and a nonaccrual loan in the solar sector presented concerns. While the bank remains confident in its growth projections, the balance of positive and negative aspects leads to a neutral sentiment.Highlights
Strong Deposit Growth
Amalgamated Financial experienced $446 million of total deposit growth in Q1, with political deposits increasing by $103 million or 11% to $1.1 billion.
Solid Net Interest Income
Net interest income was $70.6 million, within the guidance range of $70-$71 million, and the net interest margin was strong at 3.55%.
Robust Capital Returns
The bank returned more capital to shareholders than ever before, with a dividend of $0.14 per share and $3.5 million in stock repurchases, bringing the payout ratio to over 30% of earnings.
Resilient Balance Sheet
Amalgamated maintained a low-risk asset profile with high levels of liquidity and improved its CET1 ratio by 43 basis points to 14.32%.
New Headquarters Announcement
Planned move to a new New York City headquarters location in mid-2026 to attract and retain top-tier talent.
Projected Revenue Growth
Despite Q1 being expected to have the most earnings pressure, the bank is confident in revenue growth and margin expansion throughout the year.
Lowlights
Nonaccrual Loan
An $8.3 million commercial industrial loan in the solar sector moved to nonaccrual status, though sufficient collateral value was noted.
Core Earnings and Revenue Decline
There was a modest decline in core earnings and revenue from the fourth quarter due to expected rate cuts and balance sheet adjustments.
Higher Professional Fees
Professional fees increased by $2.1 million due to digital transformation and partnership costs.
Increased Nonperforming Assets
Nonperforming assets increased by $8 million to $33.9 million, primarily due to a rise in commercial industrial nonaccrual loans.
Criticized Assets and Charge-offs
Criticized assets decreased by $12 million, but there were $1.7 million in charge-offs in consumer solar loans.
Muted C&I Loan Growth
C&I loan growth is expected to remain muted in the second quarter with reacceleration more likely in the back half of the year.
Company Guidance
During the Amalgamated Financial First Quarter 2025 Earnings Call, the company provided detailed guidance and metrics, demonstrating strong financial performance despite market uncertainties. Core earnings per share were reported at $0.88, supported by net interest income of $70.6 million, aligning with previous guidance of $70-$71 million. The net interest margin was robust at 3.55%, within one basis point of expectations. Total deposits grew by $446 million, with political deposits increasing by $103 million to $1.1 billion, reflecting recovery post-election cycle. The tier one leverage ratio rose to 9.22%, allowing for significant shareholder returns, including a $0.14 per share dividend and a $3.5 million stock repurchase. The company maintained its full-year guidance for core pretax pre-provision earnings at $159-$163 million and net interest income at $293-$297 million, projecting revenue growth and margin expansion for the year.Amalgamated Bank Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Amalgamated Bank Reports Strong Q1 2025 Financial Results
Positive
Apr 24, 2025
Amalgamated Financial Corp. announced its first quarter 2025 financial results, highlighting a net income of $25.0 million and a total deposit growth of $446 million. The company reported a strong net interest margin of 3.55% and a Common Equity Tier 1 Capital Ratio of 14.27%. The earnings call revealed strategic financial maneuvers, including a $3.5 million share repurchase and a new $40 million share repurchase program. These results underscore Amalgamated’s robust financial health and strategic positioning in the market, with implications for continued growth and stability for stakeholders.
Spark’s Take on AMAL Stock
According to Spark, TipRanks’ AI Analyst, AMAL is a Outperform.
Amalgamated Bank’s overall stock score reflects strong financial performance and strategic management, highlighted by significant revenue growth and a robust balance sheet. While the stock appears technically weak, its attractive valuation and positive earnings call sentiment bolster its potential. Recent corporate events further enhance investor confidence, making it a balanced investment despite technical challenges.
To see Spark’s full report on AMAL stock, click here.
Dividends
Amalgamated Bank Declares Quarterly Dividend Announcement
Positive
Apr 22, 2025
On April 22, 2025, Amalgamated Financial Corp. announced that its Board of Directors declared a quarterly dividend of $0.14 per share, payable on May 22, 2025, to shareholders of record as of May 6, 2025. This decision reflects the company’s ongoing commitment to providing returns to its shareholders and may impact its financial positioning by reinforcing investor confidence and potentially influencing market perceptions.
Spark’s Take on AMAL Stock
According to Spark, TipRanks’ AI Analyst, AMAL is a Outperform.
Amalgamated Bank scores well due to its strong financial performance and strategic guidance for future growth. The stock’s valuation appears attractive, although technical indicators suggest bearish momentum. The overall score reflects the company’s solid position and potential, balanced against current market sentiment.
To see Spark’s full report on AMAL stock, click here.
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.
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.