Amalgamated Financial’s second quarter was met with a significant negative market reaction, despite management highlighting steady deposit and loan growth as core drivers. CEO Priscilla Sims Brown emphasized that the bank’s commercial portfolios—particularly multifamily, commercial real estate, and commercial and industrial lending—supported results, while the consumer solar and residential portfolios continued to run off. The bank’s focus on expanding its lending platform, especially with experienced hires in California, was cited as a reason for optimism, yet investors appeared concerned about rising provisioning needs and the modest pace of loan growth relative to targets.
Is now the time to buy AMAL? Find out in our full research report (it’s free).
Amalgamated Financial (AMAL) Q2 CY2025 Highlights:
- Revenue: $82.18 million vs analyst estimates of $82.52 million (4.8% year-on-year growth, in line)
- Adjusted EPS: $0.88 vs analyst estimates of $0.87 (1.1% beat)
- Market Capitalization: $890.8 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 Amalgamated Financial’s Q2 Earnings Call
- Mark Thomas Fitzgibbon (Piper Sandler) asked about expansion strategy in California. CEO Priscilla Sims Brown confirmed efforts are primarily organic, with M&A seen as a potential longer-term option but not a current focus.
- Mark Thomas Fitzgibbon (Piper Sandler) asked for details on a specific syndicated C&I credit issue in the commercial solar space. CFO Jason Darby provided context on the stressed loan, noting ongoing negotiations and the presence of collateral but uncertainty on final resolution timing.
- Mark Thomas Fitzgibbon (Piper Sandler) questioned if provisioning would remain elevated due to pressures in multifamily and renewable energy lending. Darby stated the bank is comfortable with current reserves but acknowledged future increases are possible depending on evolving risks.
- David Joseph Konrad (KBW) sought clarity on net interest margin (NIM) outlook given recent loan yields and strong deposit base. Darby explained that margin should remain stable in the near term, with potential for expansion in late 2025 as new loans and deposit mix shift.
- David Joseph Konrad (KBW) asked about expense run rate and dividend strategy. Darby projected higher expenses due to digital investments and new hires, while indicating a steady dividend payout ratio with potential for gradual increases over time.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) progress on California market expansion and integration of newly hired senior bankers, (2) the impact and adoption rate of the new digital platform on both customer experience and operational efficiency, and (3) trends in deposit mix and net interest margin as political and not-for-profit deposits continue to grow. Additionally, the pace of runoff in legacy loan portfolios and resolution of stressed credits will be important to watch.
Amalgamated Financial currently trades at $29.29, down from $33.25 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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