Amalgamated Bank ((AMAL)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Amalgamated Bank painted a largely positive picture, highlighting strong growth in core earnings, loans, and deposits. The bank’s efforts in improving credit quality and launching a digital platform were seen as significant steps forward. However, challenges such as elevated charge-offs and rising expenses were also acknowledged.
Core Earnings Growth
Amalgamated Bank reported a core earnings per share of $0.91 for Q3 2025, contributing to a year-to-date core EPS of $2.66. This reflects a growth of approximately 3%, underscoring the bank’s ability to maintain a steady upward trajectory in its core earnings.
Loan Growth Acceleration
The bank experienced a notable acceleration in loan growth, with an increase of $99 million across its multifamily, CRE, and C&I portfolios. This 3.3% growth rate marks an improvement from the previous quarter’s 2.1% growth, indicating a strengthening in the bank’s lending activities.
Deposit Franchise Expansion
Amalgamated Bank saw a significant expansion in its deposit franchise, generating over $415 million in new deposits. Notably, the political segment grew by 19% to $1.4 billion, and the Climate and Sustainability segment saw a 21% increase, highlighting the bank’s strategic focus on these areas.
Credit Quality Improvement
The bank made strides in improving its credit quality, with nonperforming assets decreasing by $12.2 million or 34.6% to $23 million. Credit quality improved by nearly $19 million to $79.2 million, marking the best ratio since the current CEO’s tenure began.
Digital Modernization Benefits
The launch of a digital modernization platform in Q3 has begun to yield benefits for Amalgamated Bank, driving improved productivity and revenue growth. This strategic move is expected to enhance the bank’s operational efficiency and customer engagement.
Net Interest Income and Margin
Net interest income increased by 4.9% to $76.4 million, while the net interest margin rose by 5 basis points to 3.6%. These figures reflect the bank’s effective management of its interest-earning assets and liabilities.
Loan Loss Charge-Off
The resolution of a problematic C&I credit resulted in a $5.4 million charge-off. However, due to prior reserves, the impact on the profit and loss statement was limited to $3.1 million, showcasing the bank’s prudent risk management.
Elevated Net Charge-Offs
Net charge-offs were reported at 0.81% of total loans, an elevated figure attributed to specific credit issues. This remains a challenge that the bank needs to address in the coming quarters.
Rising Noninterest Expense
The bank’s core noninterest expense increased by $2.9 million, driven by higher employee compensation and technology spending. This rise in expenses highlights the bank’s investment in its workforce and technological infrastructure.
Forward-Looking Guidance
Amalgamated Bank’s forward-looking guidance reflects confidence in its continued robust performance. The bank raised its core pretax pre-provision earnings guidance to $164-$165 million for the full year 2025 and tightened its net interest income guidance to $295-$296 million. These adjustments indicate a positive outlook for the bank’s financial health and operational efficiency.
In conclusion, Amalgamated Bank’s earnings call revealed a positive sentiment, driven by growth in core earnings, loans, and deposits. While challenges such as elevated charge-offs and rising expenses persist, the bank’s strategic initiatives, including digital modernization and credit quality improvements, position it well for future success.