Amalgamated Shares Surge on Record Deposit Inflows and Core Earnings Beat
The socially-responsible lender's stock touched a 52-week high after a nearly $1 billion increase in quarterly deposits overshadowed a mixed headline earnings figure.
Shares of Amalgamated Financial Corp. (Nasdaq: AMAL) surged more than 6% in afternoon trading to touch a 52-week high after the bank reported a massive influx of deposits and underlying earnings strength that investors saw as a clear sign of business momentum.
The New York-based bank, known for its focus on socially responsible and sustainable banking, saw its stock price climb to $36.03 after announcing fourth-quarter 2025 results. While reported GAAP earnings per share of $0.88 came in slightly below consensus, the market focused instead on a core EPS of $0.99, which beat analyst expectations of $0.95.
The main driver of the bullish sentiment was the bank's record deposit growth. Amalgamated attracted nearly $1 billion in new funds during the quarter, a significant achievement in a competitive banking landscape. According to its press release, this growth was composed of a $179.2 million increase in on-balance sheet deposits and a substantial $789.2 million rise in off-balance sheet funds, signaling broad-based trust in the institution.
This performance stands out in the regional banking sector, where deposit stability and cost have become critical metrics for investors. Amalgamated reported that its net interest margin (NIM) expanded by 6 basis points to 3.66%, while net interest income grew by 1.8% to $77.9 million. Adding to the positive picture, the bank's average cost of deposits declined by 16 basis points. The proportion of non-interest-bearing deposits, a source of cheap funding for lenders, grew to 41% of total deposits from 37% in the prior quarter.
"Management highlighted a quarter of record deposits and an expanding net interest margin," signaling a strong operational performance and favorable funding dynamics that resonated with the market.
The bank now boasts a formidable liquidity position, with $4.7 billion available within two days, representing 103% of its total uninsured deposits. This strong capital and liquidity base, including a Common Equity Tier 1 (CET1) ratio of 14.26%, provides a significant buffer in a period of economic uncertainty.
Loan growth also showed targeted strength, with net loans receivable increasing by 3.5% to $4.9 billion. The growth was concentrated in the bank's preferred segments, including commercial and industrial, commercial real estate, and multifamily loans, which collectively grew by $217.6 million.
The stock's strong performance has pushed its market capitalization to over $1 billion. With the recent run-up, shares have now surpassed the average analyst price target of $34.50, suggesting that Wall Street may need to re-evaluate its outlook for the company in light of its strong finish to the year. Amalgamated Bank's ability to attract significant deposits while controlling costs and expanding margins provides a bullish narrative for investors looking for resilient performers in the financial sector.