AMAL Q4 Deep Dive: Deposit Growth, Loan Expansion, and Margin Momentum Highlight Quarter

Socially responsible bank Amalgamated Financial (NASDAQ:AMAL) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 6.5% year on year to $87.91 million. Its non-GAAP profit of $0.99 per share was 9.4% above analysts’ consensus estimates.

Is now the time to buy AMAL? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Amalgamated Financial’s fourth quarter results were met with a positive market reaction, reflecting management’s emphasis on robust deposit gathering and sustained loan growth. CEO Priscilla Sims Brown credited the quarter’s performance to record-breaking deposit inflows across all customer segments and a significant increase in multifamily and commercial lending. CFO Jason Darby added that improvements in net interest margin and disciplined expense management contributed to overall earnings consistency, despite isolated credit challenges in the multifamily portfolio.

Looking ahead, management believes Amalgamated’s business model is positioned to deliver reliable asset and earnings growth in 2026, underpinned by investments in technology and talent. Darby outlined goals for increased net interest income and margin expansion, citing opportunities in loan repricing and further scaling the PACE (Property Assessed Clean Energy) portfolio. Brown noted, “Our track record navigating complex environments gives us confidence in our ability to achieve bold growth targets,” while also acknowledging the importance of maintaining credit discipline as the bank expands.

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to broad-based deposit growth, strategic lending expansion, and progress in revenue diversification, while noting a few isolated credit issues.

• Record deposit inflows: The bank achieved nearly $1 billion in new deposits, with strong contributions from political, not-for-profit, social, and climate-focused clients. This growth was described by Darby as “absolutely incredible,” and indicative of Amalgamated’s competitive differentiation in mission-aligned banking.
• Loan growth acceleration: Loan balances increased by $167 million, driven by multifamily, commercial real estate (CRE), and commercial and industrial (C&I) portfolios. Sam Brown highlighted that almost half of multifamily loan growth originated outside New York City, supporting improved geographic diversification.
• PACE portfolio expansion: The PACE (Property Assessed Clean Energy) lending segment experienced a $38 million increase, primarily from commercial PACE originations. Management pointed to partnerships with new originators as a key driver and expects this segment to play a larger role in future earnings.
• Net interest margin improvement: Net interest margin rose to 3.66%, benefiting from lower funding costs following Federal Reserve rate cuts and higher yields on new and repriced loans. Darby noted that further margin expansion is expected as more legacy loans reprice at current market rates.
• Credit highlights and challenges: Asset quality remained stable overall, but credit provisions were elevated due to a single stressed borrower in the DC multifamily market. Management stated reserves are adequate and total exposure to the affected program is limited, mitigating concerns about broader credit exposure.

Drivers of Future Performance

Amalgamated’s outlook focuses on continued loan growth, margin expansion, and prudent credit management as primary drivers for 2026.

• Loan and balance sheet growth: Management aims for quarterly net loan growth of 1.5% to 2%, supported by investments in lending teams and broader reach, especially on the West Coast. This growth is expected to underpin revenue and asset expansion.
• Margin expansion opportunities: The repricing of older real estate loans at higher current market rates and increasing contributions from the PACE portfolio are set to drive net interest margin improvement, which should positively impact profitability.
• Credit and expense discipline: While management expects credit provision levels to remain stable, they plan to maintain conservative provisioning given recent isolated credit events. Technology investments will increase, but overall expense growth is targeted and efficiency ratios are expected to remain favorable.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will track (1) the pace of deposit inflows across core customer segments, (2) the impact of loan repricing and expansion—particularly in multifamily, PACE, and West Coast portfolios—and (3) credit quality developments, especially within the multifamily and DC markets. Monitoring technology investment returns and further progress in revenue diversification will also be important.

Amalgamated Financial currently trades at $37.76, up from $36.03 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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