Breaking Down Amalgamated Financial Corp. (AMAL) Financial Health: Key Insights for Investors

You are looking at Amalgamated Financial Corp. (AMAL) and trying to map the actual value against the market noise, which is smart because the stock has been volatile, losing 20.3% year-to-date despite a strong quarter. The direct takeaway is that while the bank is executing well on its niche strategy, the near-term interest rate environment is the real headwind; you need to weigh their unique deposit growth against margin compression risk. For the third quarter of 2025, AMAL posted adjusted earnings per share (EPS) of $0.91, beating analyst expectations by 4%, on revenue of $85.61 million. Honestly, that performance is solid, driven by their unique focus which saw political deposits surge 19% and climate-focused deposits jump 21% in Q3. But still, management is defintely flagging that anticipated Federal Reserve rate cuts will pressure the net interest margin (NIM), which was 3.6% in Q3. The consensus 12-month price target is $31.50, suggesting a roughly 15.2% upside from recent levels, but that hinges on their ability to sustain loan growth-which was $99 million in Q3-while managing funding costs.

Revenue Analysis

You need to know where Amalgamated Financial Corp. (AMAL) makes its money, especially in a volatile rate environment, and the short answer is that the bank's revenue is overwhelmingly driven by its core lending business. For the third quarter of 2025, the company reported total revenue of $85.61 million, an increase of 5.6% year-over-year. This growth shows their values-oriented model is still resonating with customers, but you defintely need to look closer at the mix.

The vast majority of Amalgamated Financial Corp.'s revenue comes from Net Interest Income (NII)-the difference between interest earned on loans and interest paid on deposits. For Q3 2025, NII was a strong $76.4 million, which means it accounted for roughly 89.3% of the quarter's total revenue. This is typical for a commercial bank, but it also means the company is highly sensitive to interest rate changes and deposit costs. Management has guided for full-year 2025 Net Interest Income to land between $293 million and $297 million.

The remaining portion of revenue comes from Non-Interest Income, which hit $9.2 million in Q3 2025. This segment is important because it adds stability and diversification, and it's where you see the company's unique focus areas. It's a bank, so NII is the main event.

Here is a breakdown of the primary revenue streams and their recent trends:

• Net Interest Income (NII): The core driver, fueled by loan interest, especially from the commercial and industrial (C&I), commercial real estate (CRE), and multifamily loan portfolios.
• Non-Interest Income: Includes commercial banking fees, Bank-Owned Life Insurance (BOLI) income, and income from trust and custody services.
• Non-Core Income: A notable contributor in 2025 has been a scheduled increase in income related to solar tax equity investments, which added $2.6 million in Q2 2025.

The year-over-year revenue growth of 5.6% in Q3 2025 is solid, but the quarter-over-quarter growth in NII is perhaps more telling. NII grew by $3.5 million, or 4.9%, from Q2 2025 to Q3 2025, driven by a higher Net Interest Margin (NIM) of 3.60%. This NIM expansion is key; it shows they are successfully managing the cost of deposits against the yield on their loans and securities. For more on the customer base driving these deposits, you should check out Exploring Amalgamated Financial Corp. (AMAL) Investor Profile: Who's Buying and Why?

In terms of loan segment contribution, the growth is concentrated in the commercial space. Net loans receivable increased by $77.0 million, or 1.7%, in Q3 2025, with growth-mode loans (C&I, CRE, and multifamily) increasing by $99.2 million. They are actively shifting their loan portfolio, a trend that's been ongoing as they run off lower-yielding residential and consumer solar portfolios. This shift is a calculated move to boost overall loan yields and, in turn, NII.

Here's the quick math on the quarterly revenue composition for Q3 2025:

What this table hides is the risk that comes with such a heavy reliance on NII. While the NIM expanded to 3.60% in Q3 2025, any unexpected hike in the cost of funds (what they pay for deposits) could quickly compress that margin and hit the top line. Still, the trailing twelve-month (TTM) revenue as of September 30, 2025, was $324 million, up from $316.476 million in fiscal year 2024, showing a consistent upward trajectory.

Profitability Metrics

You need a clear picture of how Amalgamated Financial Corp. (AMAL) is making money, especially in a volatile rate environment. The direct takeaway is that AMAL's core profitability is stable and its operational efficiency is significantly better than the industry average, but its Net Interest Margin (NIM) is just slightly under the top-performing community bank peers.

As a bank, we look at Net Interest Income (NII) and the Net Interest Margin (NIM) instead of traditional gross profit. For the third quarter of 2025, Amalgamated Financial Corp. reported $76.45 million in Net Interest Income, which is the money earned from loans and securities minus the interest paid on deposits and borrowings. This performance drove a GAAP net income (net profit) of $26.8 million for the quarter, or a core net income of $27.6 million after adjusting for one-time items. That's a solid result, and it shows the bank's core business is sound.

Margins and Peer Comparison: Near-Term Strength

The most telling metrics for a bank's financial health are its margins and how efficiently it operates. Amalgamated Financial Corp.'s net profit margin is currently around 33.9%, which is a strong, resilient figure that has been in line with the prior year. This level of profitability is what you want to see, but the real story is in the operational ratios. Here's the quick math on how AMAL stacks up:

• Net Interest Margin (NIM): AMAL posted a 3.60% NIM in Q3 2025. This is an expansion from the 3.55% seen in the first two quarters of the year. To be fair, the average NIM for US community banks (which Amalgamated Financial Corp. is categorized as, given its assets are under $10 billion) was slightly higher at 3.62% in Q2 2025, but AMAL is clearly in the competitive zone.
• Efficiency Ratio: This ratio measures non-interest expense as a percentage of net operating revenue-lower is better. AMAL's Q3 2025 Efficiency Ratio was 51%. This is defintely a win, considering the overall industry aggregate for all FDIC-insured institutions was 56.2% in Q1 2025.

A 51% efficiency ratio means Amalgamated Financial Corp. spends only 51 cents to generate one dollar of revenue. That's excellent cost management.

Operational Efficiency and Profitability Trends

The trend in profitability for Amalgamated Financial Corp. throughout 2025 has been positive, but slow and steady. Net income has climbed incrementally from $25.0 million in Q1 to $26.8 million in Q3. This steady increase is driven by two key factors: margin expansion and tight cost control.

The recent NIM expansion to 3.60% in Q3 2025 is a result of effective asset-liability management (ALM), meaning the bank is successfully earning more on its loans than it is paying out on deposits. Management is also focused on digital transformation, which analysts expect will boost operational efficiency further, potentially increasing the net margin to 34.8% within three years. This focus on automation is the core of their strong efficiency ratio.

Still, you must watch the risks. The bank's valuation, evidenced by its Price-to-Earnings (P/E) ratio of 8x, is well below the US Banks industry average of 11.3x. This valuation gap signals that the market sees a risk not fully reflected in the margins, likely related to its commercial real estate (CRE) and multifamily loan exposure, which is an industry-wide headwind. You can dig deeper into this by Exploring Amalgamated Financial Corp. (AMAL) Investor Profile: Who's Buying and Why?

Here is a snapshot of the core profitability metrics for the year:

Next step: Check the latest FDIC data on non-performing assets for US regional banks to quantify the credit risk that is likely driving the valuation discount.

Debt vs. Equity Structure

You're looking at Amalgamated Financial Corp. (AMAL) and want to know how they fund their growth-is it through debt or their own capital? The short answer is they run a very conservative, equity-heavy balance sheet, which is a sign of strength in the current banking environment.

For a bank, the most common form of liability is customer deposits, not traditional debt. However, looking at their non-deposit borrowings, the company has actively managed its leverage in 2025. In the first quarter of 2025, Amalgamated Financial Corp. paid off all its short-term borrowings that were on the books at the end of the previous year, which led to a $244.7 million decrease in total borrowings.

The remaining debt is primarily long-term, specifically subordinated debt (a type of loan that gets paid after senior debt if the company defaults) that is fixed-rate and low-cost.

• Subordinated Debt: Fixed rate at 3.25%.
• Maturity Date: November 2026.
• Approximate Non-Deposit Debt (Q3 2025): Roughly $124.4 million (Total Liabilities of $7.9244 billion less Deposits of $7.8 billion).

Here's the quick math on their leverage: As of September 30, 2025, Amalgamated Financial Corp. reported stockholders' equity of $775.6 million. If we look at the most relevant non-deposit debt of approximately $124.4 million, the calculated Debt-to-Equity ratio is about 0.16:1. This is an exceptionally low leverage profile for a financial institution, defintely favoring equity.

Capital Ratios and Equity Funding

In banking, the key measure of financial health isn't the standard D/E ratio, but the regulatory capital ratios, which gauge how much equity capital a bank holds against its risk-weighted assets. Amalgamated Financial Corp. is robustly capitalized, which is a major opportunity in a market where some regional banks are still under pressure. Their capital ratios are well above regulatory minimums:

The high CET1 ratio of 14.21% shows a significant equity buffer against potential losses, a key strength in a sector where regulatory capital levels are a constant focus. This strong equity position gives the company flexibility to pursue growth without immediately needing external debt financing.

The company is also actively using its equity to return value to shareholders. Through the first three quarters of 2025, Amalgamated Financial Corp. repurchased approximately $10.4 million in common stock, with a remaining capacity of $19.9 million under its current share repurchase program. This is a clear signal from management that they believe the stock is undervalued and that their internal capital generation is strong. This commitment to share buybacks, alongside the low debt profile, confirms a strategy that prioritizes equity strength and shareholder returns.

To dig deeper into the company's full financial picture, check out the rest of the analysis in Breaking Down Amalgamated Financial Corp. (AMAL) Financial Health: Key Insights for Investors.

Liquidity and Solvency

The short answer is that Amalgamated Financial Corp. (AMAL) shows a rock-solid liquidity position as of Q3 2025, largely due to its high cash reserves and strong deposit base. For a bank, we look beyond the standard Current Ratio (current assets divided by current liabilities) and Quick Ratio, which are more relevant for manufacturing or retail businesses. Instead, we focus on immediate and two-day liquidity coverage of uninsured deposits-a much more defintely relevant metric.

As of September 30, 2025, Amalgamated Financial Corp.'s most critical liquidity measure, the 2-day Liquidity Coverage of Uninsured Deposits, stood at a healthy 101.87%. This means the bank's immediately available cash and borrowing capacity, plus unpledged securities, fully covers its most volatile liabilities. Back in Q1 2025, their total liquidity within two days was already substantial at $3.6 billion. That's a massive buffer.

Working Capital and Deposit Trends

The strength here lies in deposit growth and a managed balance sheet. The bank's total assets were $8.7 billion at the end of Q3 2025, with total on-balance sheet deposits reaching $7.8 billion. You want to see deposits growing to fund loans, and Amalgamated Financial Corp. delivered.

Here's the quick math on Q3 2025 deposit movement:

• On-balance sheet deposits increased by $36.7 million (0.5%) during the quarter.
• Political deposits, a core business segment, increased by $235.0 million (19%) to a total of $1.4 billion.
• Net loans receivable also saw growth, reaching $4.7 billion.

The growth in political deposits is a clear opportunity, but also a risk; these deposits can be volatile, especially around election cycles. You need to monitor that closely. For a deeper dive on who is driving this deposit growth, you should check out Exploring Amalgamated Financial Corp. (AMAL) Investor Profile: Who's Buying and Why?

Cash Flow Statement Overview

Looking at the Trailing Twelve Months (TTM) cash flow data helps us understand the bank's operational health and investment strategy. Amalgamated Financial Corp. generated strong cash from core operations, while strategically deploying capital into assets.

The negative investing cash flow is not a concern here; it's typical for a growing bank that is putting deposits to work by originating loans and purchasing securities. The core operations are generating the cash needed, and the bank is using that cash to expand its asset base, which is exactly what you want to see.

Potential Liquidity Strengths and Concerns

The primary strength is the bank's high liquidity ratio coverage of uninsured deposits, sitting comfortably above the 100% mark. This signals excellent preparedness for potential deposit outflows. Still, the concentration of political deposits, while profitable, represents a near-term risk. If the political cycle shifts, that $1.4 billion deposit base could shrink rapidly, forcing the bank to rely more heavily on its liquidity reserves or higher-cost funding. The management team has shown they are aware of this, keeping a high level of immediate liquidity to mitigate this specific risk.

Valuation Analysis

The quick takeaway for Amalgamated Financial Corp. (AMAL) is that it looks undervalued on a book value basis, but the market is clearly pricing in near-term risks, leading to a consensus Hold rating. You are buying a quality bank at a discount to its historical multiples, but you have to be comfortable with the current market sentiment.

When we look at traditional bank valuation metrics, the numbers are compelling. As of November 2025, Amalgamated Financial Corp.'s Price-to-Earnings (P/E) ratio sits at 8.22, which is low compared to the broader market and suggests a cheap stock. Looking ahead, the forward P/E is even lower at 7.92, based on expected earnings per share (EPS) of $3.55. Here's the quick math: a single-digit P/E for a profitable, well-capitalized bank often signals an opportunity, or a major fear.

The Price-to-Book (P/B) ratio, which is defintely a core metric for banks, tells a similar story. The P/B ratio is currently around 1.12 as of November 2025. This means the stock price is just 12% above the company's accounting book value-the theoretical liquidation value of its assets minus liabilities. For a bank with a strong Common Equity Tier 1 Capital ratio of 14.27% (Q1 2025), trading this close to book value is a sign of market pessimism, not poor fundamentals. We don't use Enterprise Value-to-EBITDA (EV/EBITDA) for banks because their primary earnings driver is Net Interest Income, not operating profit before non-cash charges.

The stock price trend over the last 12 months maps directly to this market caution. The stock has seen a significant drop in 2025, with a year-to-date decline of -15.1%. The 52-week range shows the volatility: the stock traded as high as $37.86 and as low as $25.03. The current price of approximately $28.12 is closer to the low end, reflecting investor anxiety about interest rates and loan portfolio health, despite strong Q3 2025 net income of $26.8 million.

The dividend profile is solid and well-covered. Amalgamated Financial Corp. pays an annual dividend of $0.56 per share, giving a current dividend yield of 2.01%. The payout ratio is exceptionally low at just 16.87% of earnings, which is exactly what you want to see-the dividend is safe and there is plenty of room for growth or for the company to reinvest in the business or buy back shares, as they did with a $9.7 million buyback in Q2 2025. The dividend is safe.

Wall Street analysts are sitting on the fence, which is understandable given the conflicting signals. The consensus rating is a Hold or Neutral, with a median 12-month price target of $31.50 per share. This target suggests a potential upside of about 12% from the current price, implying analysts see the stock as fairly valued but with room for appreciation as market fears subside. Before you make a move, you should also look at the institutional activity. You can get more context on who is driving the price action by Exploring Amalgamated Financial Corp. (AMAL) Investor Profile: Who's Buying and Why?

• P/E Ratio: 8.22 (Low, signals undervaluation or risk).
• P/B Ratio: 1.12 (Near book value, attractive for a profitable bank).
• Dividend Yield: 2.01% (Solid, well-covered).
• Analyst Target: $31.50 (Implies a 12% upside).

Your action item is to investigate the loan portfolio's exposure to commercial real estate (CRE), as that is the likely source of the market's current risk aversion, despite the attractive valuation metrics.

Risk Factors

You're looking at Amalgamated Financial Corp. (AMAL) and seeing solid 2025 results-Net Income of $26.8 million in Q3 2025, for example-but a seasoned analyst knows to look past the headline numbers. The risks are real, and they map directly to the regional banking sector's current challenges, plus a few unique to AMAL's mission-driven focus.

The primary near-term risk is the credit cycle, specifically the quality of their loan portfolio. In Q1 2025, nonperforming assets (NPAs) rose to $33.9 million, or 0.41% of total assets, primarily due to an $11.9 million increase in commercial and industrial (C&I) non-accrual loans, including one single loan of $8.3 million. This is a clear warning sign.

Operational and Strategic Risks

Amalgamated Financial Corp. (AMAL) has a unique business model with a significant focus on political and labor deposits. While this has been a strength-political deposits increased by 19% to $1.4 billion in Q3 2025-it introduces volatility tied to election cycles and political sentiment.

• Interest Rate Sensitivity: The net interest margin (NIM) expanded to 3.60% in Q3 2025, but future Fed rate cuts pose a threat. Management estimates a parallel 25 basis point decrease in rates beyond the forward curve could decrease annual net interest income by approximately $2.2 million.
• Loan Portfolio Stress: Beyond the Q1 C&I issue, the company also had to build a specific reserve for a nonaccrual multifamily loan in Q3 2025, indicating ongoing credit scrutiny.
• Market Perception: Technical indicators have suggested bearish momentum for the stock, despite strong fundamentals, which can limit capital raising options and keep the stock price defintely low.

Mitigation and Defensive Strategy

The good news is that Amalgamated Financial Corp. (AMAL) is not ignoring these risks; they're actively managing them. Their capital position is a major defense, with a Common Equity Tier 1 (CET1) Capital ratio of 14.13% as of June 30, 2025, which is an industry-leading level.

Here's the quick math on their credit risk management: they successfully resolved a stressed syndicated C&I loan of $10.8 million, absorbing the impact within core earnings and improving credit quality metrics. Plus, they are using their capital to support the stock price, having repurchased approximately 347,000 shares in Q3 2025 as part of a new $40 million buyback authorization. This is a strong signal of management's confidence in the stock's implied value. You can dig deeper into who is actually buying and selling the stock here: Exploring Amalgamated Financial Corp. (AMAL) Investor Profile: Who's Buying and Why?

What this estimate hides is the potential for a deeper, recession-driven credit downturn, which would stress even their relatively low commercial real estate exposure. Still, their high liquidity and strong capital ratios buy them time to navigate a choppy economic environment.

Your next step should be to monitor the Allowance for Credit Losses on Loans, which was $56.5 million in Q3 2025, to ensure it keeps pace with any further NPA increases.

Growth Opportunities

You're looking for where Amalgamated Financial Corp. (AMAL) goes from here, and the answer is clear: they are doubling down on their mission-aligned niches. This isn't a bank chasing every loan; it's a specialist driving organic growth in specific, high-conviction areas.

Their future revenue growth isn't about broad market expansion; it's about deepening their penetration in key segments. For the full 2025 fiscal year, Amalgamated Financial Corp. has tightened and raised its guidance, projecting core pre-tax pre-provision earnings between $164 million and $165 million, a solid increase from earlier estimates. They also expect Net Interest Income (NII) to land between $295 million and $296 million. That's defintely a precise outlook.

Here's the quick math on their recent performance: Q3 2025 revenue came in at $85.61 million, beating analyst expectations. Their core net income per diluted share (Adjusted EPS) was $0.91 for the quarter.

Key Growth Drivers and Strategic Initiatives

The company's growth is driven by a few powerful, interconnected levers. Their strategic focus is on 'growth mode portfolios' which saw a nice acceleration in Q3 2025, including Commercial & Industrial (C&I), multifamily, and Commercial Real Estate (CRE) loans.

The most compelling growth driver remains their unique deposit base, which is sticky and low-cost. Political deposits alone surged 19% in Q3 2025 to reach approximately $1.4 billion. Plus, their Climate and Sustainability segment saw deposits grow by 21%, showing their mission is a real business advantage.

On the technology side, they launched a fully integrated digital modernization platform in Q3 2025. This isn't just a website update; it's a move to boost productivity and keep their efficiency ratio in check, which is crucial in a competitive banking environment.

• Political deposits are a seasonal but powerful tailwind.
• Climate and Sustainability lending taps a growing sector.
• Digital tools will improve the cost-to-serve ratio.

Competitive Advantages: The Socially Responsible Edge

Amalgamated Financial Corp. is a certified B Corporation (B Corp), a designation for for-profit companies meeting high standards of social and environmental performance, accountability, and transparency. This is their moat, their competitive advantage. It translates directly into business because their values resonate with their target clientele-labor unions, progressive non-profits, and mission-driven organizations-giving them a stable, low-cost funding source.

Their balance sheet also shows a low-risk profile, with a low concentration in Commercial Real Estate lending compared to many peers. Their Common Equity Tier 1 Capital ratio was a strong 14.27% as of Q1 2025, signaling a well-capitalized bank. They are financially strong, but still, you need to monitor how they manage their solar loan portfolio, which has shown some volatility.

To be fair, their mission is not just a marketing slogan; it's a client acquisition engine. Their commitment is detailed here: Mission Statement, Vision, & Core Values of Amalgamated Financial Corp. (AMAL).

Next step: Finance should model the impact of a 50 basis point Fed rate cut on their Q4 NII, given their expectation for loan yield pressure.