Amalgamated Financial Reports Strong Q4 & FY25 Core Earnings, Record Deposit Growth; Issues Positive 2026 Guidance
Summary
Amalgamated Financial Corp. announced robust fourth quarter and full-year 2025 core financial results, highlighted by record deposit growth and expanding net interest margin, alongside optimistic 2026 guidance, despite an increase in nonperforming and criticized loans.
Key Events
-
Strong Q4 2025 Core Earnings
Core net income increased to $30.0 million, or $0.99 per diluted share, in Q4 2025, up from $27.6 million, or $0.91 per diluted share, in the prior quarter.
-
Record Deposit Growth
The company achieved record deposit gathering, with on-balance sheet deposits increasing by $179.2 million to $7.9 billion and off-balance sheet deposits growing by $789.2 million to $1.1 billion. Political deposits also rose significantly by $286.9 million to $1.7 billion.
-
Net Interest Margin Expansion
Net interest margin expanded by 6 basis points to 3.66% in Q4 2025, contributing to a 1.8% increase in net interest income to $77.9 million.
-
Deterioration in Credit Quality
Nonperforming assets increased by $5.7 million to $28.7 million (0.32% of total assets), primarily driven by three multifamily loans. Criticized or classified loans also rose by $30.3 million to $109.5 million, largely attributable to six multifamily loans from a single borrower.
Analysis
Amalgamated Financial Corp. delivered a strong fourth quarter and full-year 2025, marked by significant core earnings growth, record deposit inflows, and an expanding net interest margin. The company's capital ratios remain robust, and it has provided an optimistic outlook for 2026, projecting continued growth in net interest income and core profitability. However, investors should note the increase in nonperforming assets and criticized/classified loans, particularly within the multifamily segment, which warrants close monitoring. This mixed performance, with strong operational results tempered by emerging credit quality concerns, comes as the stock trades near its 52-week high, suggesting high market expectations.
At the time of this filing, AMAL was trading at $36.03 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.1B. The 52-week trading range was $25.03 to $37.26. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.