Amalgamated Financial’s third quarter was marked by continued momentum in deposit growth and loan expansion, which management described as key contributors to the positive results. CEO Priscilla Sims Brown cited market share gains across all deposit segments and an acceleration in lending activity, particularly in multifamily, commercial real estate, and commercial and industrial portfolios. The quarter also featured the decisive resolution of a previously stressed loan, which management highlighted as a driver of improved credit quality metrics. Commenting on this, Brown said, “We keep delivering great results. And the quality and sustainability of our earnings allows us to handle problem situations with ease.”
Is now the time to buy AMAL? Find out in our full research report (it’s free for active Edge members).
Amalgamated Financial (AMAL) Q3 CY2025 Highlights:
- Revenue: $86.41 million vs analyst estimates of $83.32 million (6.6% year-on-year growth, 3.7% beat)
- Adjusted EPS: $0.91 vs analyst estimates of $0.88 (4% beat)
- Adjusted Operating Income: $37.76 million (43.7% margin, 1.4% year-on-year decline)
- Market Capitalization: $820.5 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Amalgamated Financial’s Q3 Earnings Call
- Mark Fitzgibbon (Piper Sandler) asked about the $1.9 million specific reserve for a multifamily property. CFO Jason Darby explained it was tied to an updated appraisal and a move to nonaccrual status, reflecting prudent reserve management.
- Mark Fitzgibbon (Piper Sandler) questioned the outlook for New York rent-regulated multifamily loans if rent freezes are enacted. CEO Priscilla Sims Brown replied that no near-term impact is expected, but management will monitor policy developments and provide ongoing disclosure.
- Mark Fitzgibbon (Piper Sandler) inquired about the risk of federal funding cuts for green energy projects. Chief Banking Officer Sam Brown said current financed projects are already funded and operating, so they are not at risk, though future pipeline projects could be affected if funding changes.
- Mark Fitzgibbon (Piper Sandler) raised concerns about regulatory scrutiny and potential “debanking” risk. CEO Priscilla Sims Brown emphasized the bank’s strict adherence to legal and regulatory requirements and strong risk management practices.
- Unknown Analyst (KBW) asked about the sustainability of expense levels and the impact of digital transformation on costs. CFO Jason Darby indicated that while technology investment increased expenses, the efficiency ratio remains strong and there is potential upside to the annual expense target if current trends persist.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be monitoring (1) continued momentum in deposit growth across core segments, (2) the impact of interest rate changes on loan yields and net interest income, and (3) execution of the digital transformation program to drive productivity and customer engagement. Additionally, we will watch for developments in regulatory and policy environments, particularly those affecting the multifamily and renewable energy loan portfolios.
Amalgamated Financial currently trades at $27.27, up from $26.66 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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