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Amalgamated Bank (AMAL)
NASDAQ:AMAL
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Amalgamated Bank
(NASDAQ:AMAL)
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Rating:79Outperform
Price Target:
$41.00
▲(1.18% Upside)
AMAL scores well primarily on strong financial performance (healthy profitability, high cash conversion, and improving leverage) and positive technical momentum (price above key moving averages with a positive MACD). Valuation is supportive with a low P/E, while the earnings call adds a constructive outlook via 2026 growth guidance, tempered by credit and expense headwinds.
Positive Factors
Revenue Growth
The significant revenue growth indicates robust business expansion and effective market penetration, supporting long-term profitability.
Credit Quality Improvement
Improved credit quality reduces risk exposure and enhances financial stability, supporting sustainable growth and profitability.
Renewable Lending Focus
Emphasizing renewable lending aligns with industry trends, potentially attracting environmentally conscious clients and driving long-term growth.
Negative Factors
Rising Noninterest Expense
Increased expenses, particularly in compensation and technology, could pressure margins and affect profitability if not managed effectively.
Elevated Net Charge-Offs
High charge-offs indicate potential credit risk, which could impact financial performance and necessitate more conservative lending practices.
Cash Flow Generation Challenges
Weak cash flow generation may limit the bank's ability to invest in growth opportunities and manage financial obligations effectively.
Amalgamated Bank (AMAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.21B
Dividend Yield1.7%
Average Volume (3M)178.76K
Price to Earnings (P/E)11.8
Beta (1Y)0.86
Revenue Growth4.33%
EPS Growth-2.20%
CountryUS
Employees429
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.99
Shares Outstanding29,936,320
10 Day Avg. Volume199,829
30 Day Avg. Volume178,762
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)1.45
Price to Sales (P/S)2.35
P/FCF Ratio8.37
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue2.90
Enterprise Value/Gross Profit4.20
Enterprise Value/Ebitda9.05
Forecast
1Y Price Target
$38.00Price Target Upside-6.22% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 generates revenue through several key streams, primarily from interest income and fee-based services. The bank earns interest income by providing loans to consumers and businesses, with interest rates that vary based on risk and market conditions. Additionally, Amalgamated Bank charges fees for various banking services, including account maintenance, transaction processing, and wealth management services. The bank also potentially benefits from partnerships with organizations that align with its values, such as non-profits and socially responsible enterprises, which can enhance its customer base and promote community-focused financial products. Furthermore, investment income from the bank's asset management services contributes to its overall revenue, while strategic initiatives aimed at promoting sustainable practices attract clients who prioritize ethical banking.
Amalgamated Bank Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum — record deposit gathering, NIM expansion, solid loan growth (particularly in growth-mode portfolios), PACE acceleration, improving revenue diversification, and constructive 2026 guidance including higher NII and profitability targets. These positives were tempered by isolated credit stress in a D.C. multifamily relationship, elevated charge-offs tied to certain portfolios (including consumer solar), a modest loss on a residential loan sale, and planned increases in operating and technology spending. Management believes reserves are adequate and emphasized disciplined growth backed by capital and liquidity, which supports a constructive outlook despite some credit and expense headwinds.Q4-2025 Updates
Positive Updates
Record Deposit Gathering
Generated nearly $1.0 billion of new deposits in the quarter. On-balance sheet deposits grew $179 million to $7.9 billion, off-balance sheet deposits increased $789 million to $1.1 billion, and political deposits rose $287 million to $1.7 billion. All customer segments showed deposit growth (Not-for-profit +$388M, Social & Philanthropy +$122M, Climate & Sustainability +$77M).
Net Interest Margin and Net Interest Income Expansion
Net interest margin expanded 6 basis points to 3.66% in the quarter driven by a 16 basis point decline in cost of funds. Net interest income increased 1% to $77.9 million, exceeding the high end of guidance for the quarter.
Loan Growth and Growth-Mode Portfolio Momentum
Total loans increased $167 million, or 3.5%, to $4.9 billion. Growth-mode portfolios (multifamily, CRE, C&I) grew $218 million or 7% quarter-over-quarter. Quarterly momentum supports guidance for 1.5%–2% quarterly net loan growth in 2026.
PACE Portfolio Acceleration
Total PACE assessments rose $38 million or 3% to $1.3 billion in the quarter, including over $27 million of C-PACE growth. Management highlighted C-PACE as a high-yield growth opportunity and expects to scale volume via a new originator partnership.
Consistent Earnings and Capital Actions
Core net income (non-GAAP) was $30.0 million or $0.99 per diluted share; GAAP net income was $26.6 million or $0.88 per diluted share. Tangible book value per share rose $0.87 (3.4%). Returned capital via $8.7 million of buybacks and raised the quarterly dividend by $0.03 to $0.17.
Improving Revenue Diversification and Efficiency
Core noninterest income was $10.1 million and represented 11.4% of core revenue, showing steady improvement toward the bank's revenue diversification objective. Core efficiency ratio was 51.13% and core operating expense was $44.9 million for the quarter, in line with the $170 million annual target.
Strong Capital and Regulatory Metrics
Tier 1 leverage ratio reported at 9.36%, and management emphasized above-peer capital ratios and a focus on maintaining capital consistent with balance sheet growth plans toward a $10B+ asset target.
2026 Financial Guidance and Growth Targets
2026 guidance: Net interest income of $327M–$331M (≈10%–11% growth); core pre-tax pre-provision earnings $180M–$183M (9%–10% growth); core ROTCE target ~15%; balance sheet growth ~5%; tech spend growth ~18% and annual core OpEx to $188M. Management reiterated readiness to scale to $10+ billion in assets.
Negative Updates
Multifamily Asset Stress and Increased Reserves
A distressed borrower in the Washington, D.C. rapid rehousing program led to a $1.9 million reserve build and a $7.5 million increase in nonaccrual multifamily loans; this was the primary driver of an increase in criticized/classified multifamily assets for the quarter.
Elevated Charge-offs and Provision Drivers
Quarter included elevated charge-offs (an ~$800k contribution to provision expense related to a marked-for-sale non-accrual multifamily asset). Management expects provision for 2026 to be roughly in line with 2025, with only modest improvement on the margin due to ongoing consumer solar portfolio charge-off trends.
Loss on Sale of Performing Residential Loans
The sale of performing residential loans (aggregate sale amount disclosed as $41.9 million of loans with sub‑3% coupons) resulted in a $3.8 million pretax loss, creating a spread between GAAP and core earnings for the quarter.
Non-Core Severance and Rising Operating Expense Guidance
Quarterly expenses ticked up due in part to non-core severance in the residential lending unit. Management expects annual core operating expenses to increase to $188 million and technology spend to grow ~18%, which could pressure near-term efficiency if revenue growth lags.
Concentration / Cycle Risk from Political Deposits
Political deposits grew materially to $1.7 billion, reflecting election-cycle fundraising. While a strength in the near term, management acknowledges these flows typically peak before elections and can be a source of deposit volatility after peak periods.
Tax Accounting Change and ETR Uncertainty
Management implemented a new tax planning approach that classifies certain tax credits through the tax provision (making them core rather than non‑core). Guidance language around the effective tax rate was inconsistent in the call (references to a 26.5% start target and modeling ~20.5% ETR), creating some near-term uncertainty around tax-driven earnings volatility and comparability.
Company Guidance
In its 2026 guidance management forecast full‑year net interest income of $327–331 million (about 10–11% growth) and core pre‑tax, pre‑provision earnings of $180–183 million (9–10% growth), targeting core return on average assets of 1.35% and core return on tangible common equity of 15%, roughly 5% balance‑sheet growth and quarterly net loan growth of 1.5–2%; they plan annual core operating expenses of $188 million with technology spend up ~18%, aim to deliver positive core operating leverage (reported between 3–4%), are modeling an effective tax rate near 20.5% with upside from tax‑credit strategies, assume an average 2026 balance sheet of approximately $8.7 billion, expect quarterly net interest income of $79–81 million, and anticipate net interest margin to rise from the Q4 level (Q4 NIM was 3.66%).Amalgamated Bank Financial Statement Overview
Summary
Solid fundamentals supported by strong profitability (net margins ~23% TTM), consistently high free-cash-flow conversion (~97–99% of net income), and improved leverage in TTM. Offsets include eased margins versus prior peaks, slightly lower TTM net income versus 2024, and historical leverage volatility.Income Statement
AMAL shows strong profitability with healthy net margins (TTM (Trailing-Twelve-Months) ~23%) and solid operating profitability, though margins have eased from the 2022 peak. Revenue has expanded materially since 2020, but the growth trajectory has become more uneven—high growth in 2022–2023, then slower in 2024 and a re-acceleration in TTM. Net income remains strong, but has been slightly lower in TTM versus 2024, signaling some recent pressure despite continued revenue gains.78
Positive
Balance Sheet
Leverage appears conservative in the latest period, with total debt down sharply and a low debt-to-equity level in TTM, improving financial flexibility versus 2022–2024 when leverage was notably higher (peaking in 2022). Equity has grown over time, supporting balance-sheet strength, and returns on equity are consistently solid (mid-teens in recent years). The key watch item is the historical volatility in leverage, suggesting capital structure can shift meaningfully year to year.73
Positive
Cash Flow
Cash generation is a standout: free cash flow is consistently high and closely tracks net income across years (roughly ~97–99%), indicating strong earnings quality. TTM free cash flow growth is very strong versus the prior period, and operating cash flow remains healthy and stable. The main weakness is that operating cash flow relative to total debt is low in absolute terms (consistent with bank balance sheets), so improvements in debt levels are important to maintain this strength.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 447.73M | 435.34M | 382.48M | 285.16M | 208.76M | 223.69M |
| Gross Profit | 309.32M | 306.19M | 271.05M | 251.51M | 202.83M | 188.42M |
| EBITDA | 143.54M | 151.02M | 131.13M | 118.51M | 75.57M | 69.51M |
| Net Income | 102.30M | 106.43M | 87.98M | 81.48M | 52.94M | 46.19M |
Balance Sheet | ||||||
| Total Assets | 8.68B | 8.26B | 7.97B | 7.84B | 7.08B | 5.98B |
| Cash, Cash Equivalents and Short-Term Investments | 670.23M | 1.69B | 1.57B | 1.88B | 2.44B | 1.58B |
| Total Debt | 90.28M | 334.14M | 335.57M | 698.49M | 131.99M | 53.17M |
| Total Liabilities | 7.91B | 7.55B | 7.39B | 7.33B | 6.51B | 5.44B |
| Stockholders Equity | 775.57M | 707.65M | 585.23M | 508.82M | 563.74M | 535.69M |
Cash Flow | ||||||
| Free Cash Flow | 124.67M | 122.29M | 115.75M | 145.65M | 68.14M | 64.16M |
| Operating Cash Flow | 127.64M | 124.06M | 117.22M | 147.32M | 70.54M | 65.77M |
| Investing Cash Flow | -300.70M | -315.95M | -134.41M | -1.20B | -865.41M | -755.14M |
| Financing Cash Flow | 139.40M | 162.06M | 44.21M | 788.22M | 1.09B | 605.60M |
Amalgamated Bank Technical Analysis
Positive
40.52
Price Trends
33.48
Positive
30.35
Positive
30.02
Positive
Market Momentum
2.02
Negative
77.00
Negative
86.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMAL, the sentiment is Positive. The current price of 40.52 is above the 20-day moving average (MA) of 36.41, above the 50-day MA of 33.48, and above the 200-day MA of 30.02, indicating a bullish trend. The MACD of 2.02 indicates Negative momentum. The RSI at 77.00 is Negative, neither overbought nor oversold. The STOCH value of 86.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.21B | 11.84 | 13.88% | 1.70% | 4.33% | -2.20% | |
79 Outperform | $907.04M | 11.78 | 11.65% | 3.39% | 1.22% | 15.97% | |
76 Outperform | $920.57M | 13.53 | 6.43% | 3.91% | 8.27% | 54.96% | |
74 Outperform | $997.62M | 13.43 | 6.53% | 4.73% | 6.27% | 79.25% | |
69 Neutral | $938.79M | 17.74 | 7.21% | 1.79% | 15.37% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | $931.65M | -5.77 | -26.60% | 3.50% | -78.64% | -913.67% |
* Financial Sector Average
AMAL
Amalgamated Bank
40.23
5.42
15.56%
CFFN
Capitol Federal Financial
7.59
1.79
30.77%
CPF
Central Pacific Financial
33.81
4.52
15.45%
HFWA
Heritage Financial
27.11
2.37
9.59%
HBNC
Horizon Bancorp
18.19
1.32
7.81%
AMTB
Amerant Bancorp
22.99
0.24
1.05%
Amalgamated Bank Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Amalgamated Bank reports strong Q4 and 2025 results
Positive
Jan 22, 2026
On January 22, 2026, Amalgamated Financial Corp. reported its fourth quarter and full-year 2025 results, highlighting record quarterly deposit growth of nearly $1 billion, strong liquidity of $4.7 billion within two days, and a higher net interest margin of 3.66% in the quarter. Fourth-quarter 2025 net income was essentially flat at $26.6 million, or $0.88 per diluted share, while core net income rose to $30.0 million; net loans increased to $4.9 billion, deposits expanded both on and off balance sheet, and capital remained robust with a Common Equity Tier 1 ratio of 14.26% and tangible book value per share up 3.4% to $26.18. For full year 2025, net income dipped 1.9% to $104.4 million but core net income increased 3.6% to $111.6 million, supported by 10.7% on-balance sheet deposit growth, 6.2% loan growth, higher net interest income and margin, stable nonperforming assets, and continued share repurchases, underscoring the bank’s solid profitability, balance-sheet growth, and strengthened capital and liquidity position.
The most recent analyst rating on (AMAL) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Amalgamated Bank stock, see the AMAL Stock Forecast page.
Business Operations and StrategyDividends
Amalgamated Bank Announces Significant Quarterly Dividend Increase
Positive
Jan 20, 2026
On January 20, 2026, Amalgamated Financial Corp. announced that its board of directors approved a 21% increase in the company’s quarterly dividend, raising the payout by $0.03 to $0.17 per common share, payable on February 19, 2026, to shareholders of record as of February 3, 2026. The dividend hike signals management’s confidence in the bank’s financial performance and capital position and underscores its effort to enhance shareholder returns while reinforcing its positioning as a values‑driven, growth‑oriented regional commercial bank with a large and growing trust and asset management franchise.
The most recent analyst rating on (AMAL) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Amalgamated Bank stock, see the AMAL Stock Forecast page.
Business Operations and Strategy
Amalgamated Bank Highlights Renewable Lending Focus
Positive
Nov 10, 2025
On November 11, 2025, Amalgamated Financial Corp. will present to institutional investors using an Investor Presentation. The presentation highlights the company’s renewable lending portfolio, which is composed of various loan types and sectors, such as solar and wind energy. The report, furnished on November 10, 2025, outlines the company’s strategic focus on renewable energy, showcasing a robust risk rating profile and a geographical spread of projects, indicating strong market positioning and commitment to sustainable finance.
The most recent analyst rating on (AMAL) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Amalgamated Bank stock, see the AMAL Stock Forecast page.
Stock BuybackFinancial Disclosures
Amalgamated Bank Reports Strong Q3 2025 Financial Results
Positive
Oct 23, 2025
Amalgamated Financial Corp. reported its third-quarter 2025 financial results, highlighting a solid balance sheet and an expanded net interest margin of 3.60%. The company achieved a net income of $26.8 million, with core net income reaching $27.6 million. Deposits saw a notable increase, particularly political deposits, while nonperforming assets decreased significantly. The company also repurchased approximately 347,000 shares of common stock, reflecting strong quarterly earnings and a commitment to shareholder returns.
The most recent analyst rating on (AMAL) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Amalgamated Bank stock, see the AMAL Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.