Amalgamated Financial Corp (NASDAQ:AMAL) reported its fourth-quarter 2025 financial results, delivering a mixed performance against Wall Street expectations. The socially responsible bank posted core earnings that exceeded analyst forecasts, but its top-line revenue fell short of consensus estimates. This divergence is reflected in the stock's pre-market trading activity, which showed a decline of approximately 4.7% following the report's release.
Earnings and Revenue Versus Estimates
The company's financial performance presented a clear split between profitability and revenue growth for the quarter.
- Earnings Per Share (EPS): Amalgamated reported core net income of $30.0 million, or $0.99 per diluted share. This figure surpassed the analyst consensus estimate of $0.92 per share, representing a beat of approximately 7.3%.
- Revenue (Sales): Total revenue for the quarter was $85.2 million, marking a 3.2% increase from the year-ago period. However, this result missed Wall Street's revenue expectation of $86.6 million.
The market's negative reaction in pre-market trading suggests investors are placing greater emphasis on the revenue miss than on the earnings beat. This focus may stem from concerns about the underlying growth trajectory of the bank's core operations, despite effective cost management and other income factors driving the bottom-line outperformance.
Key Highlights from the Quarter
Beyond the headline numbers, Amalgamated's press release emphasized several areas of operational strength, most notably a significant surge in deposit gathering.
- Record Deposit Growth: The company highlighted "record quarterly deposit growth of nearly $1 billion." This was driven by a combination of on-balance sheet deposit increases and a substantial $789.2 million rise in off-balance sheet deposits. A key contributor was political deposits, which grew by $286.9 million, or 19.9%, to $1.7 billion.
- Net Interest Margin Expansion: The net interest margin expanded by 6 basis points to 3.66%, supported by a lower average cost of deposits and a higher proportion of non-interest-bearing accounts.
- Loan Portfolio Growth: Net loans receivable increased by $167.4 million, or 3.5%, to $4.9 billion, with targeted growth areas like commercial & industrial and multifamily loans leading the way.
- Capital and Shareholder Returns: Tangible book value per share increased to $26.18. The company continued its capital return program, repurchasing approximately 309,000 shares during the quarter and paying a quarterly dividend of $0.14 per share.
Looking Ahead: Analyst Estimates for 2026
While the press release did not provide specific financial guidance for the coming year, current analyst estimates offer a benchmark for future performance. For the full year 2026, analysts are projecting sales of approximately $363.0 million and earnings per share of $4.03. For the immediate next quarter (Q1 2026), the consensus estimates are for revenue of $86.5 million and EPS of $0.94.
The company's ability to convert its strong deposit growth into profitable loan expansion and sustain its net interest margin will be critical factors in meeting or exceeding these forward-looking estimates.
Conclusion
Amalgamated Financial's Q4 2025 results paint a picture of a bank executing effectively on funding and profitability metrics, as evidenced by record deposit inflows and an earnings beat. However, the revenue shortfall relative to expectations has tempered investor enthusiasm in the immediate aftermath, highlighting the market's current sensitivity to top-line growth. The bank's unique positioning in politically-aligned deposit gathering remains a differentiated strength, but the focus will now shift to how it leverages this low-cost funding to drive consistent revenue growth in the quarters ahead.
For a detailed breakdown of historical earnings and future analyst estimates for Amalgamated Financial, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
