Amalgamated Financial authorizes $40 million stock buyback

NEW YORK - Amalgamated Financial Corp. (NASDAQ:AMAL), a bank holding company, announced a new share repurchase program authorizing the buyback of up to $40 million of its Class A common stock. This new plan supersedes the prior authorization, which had approximately $18.7 million remaining as of December 31, 2024. According to InvestingPro data, the stock is currently trading below its Fair Value, with a P/E ratio of 8.09 and a market capitalization of $870 million.

Priscilla Sims Brown, President and CEO of Amalgamated, remarked on the timing of the authorization, noting the bank’s positive start to the year with increasing political deposit balances and a growing business pipeline. She expressed the view that the current share price does not accurately reflect this momentum or the bank’s future growth opportunities, making the repurchase authorization particularly timely. This assessment aligns with InvestingPro analysis, which shows the company has raised its dividend for three consecutive years and maintains strong profitability with a 16% return on equity.

The buyback program does not have a set expiration date and may be altered or ceased at the company’s discretion. The decision to repurchase shares will be contingent on a variety of factors, including stock performance, capital planning considerations, market conditions, and legal requirements.

Amalgamated Financial Corp., a Delaware public benefit corporation, operates through its wholly-owned subsidiary, Amalgamated Bank. With a history dating back to 1923, the bank offers a full suite of commercial banking and trust services across its network, which includes branches in New York City, Washington D.C., San Francisco, and a commercial office in Boston. As a member of the Global Alliance for Banking on Values and a certified B Corporation®, the bank is committed to supporting social and environmental causes.

As of the end of 2024, Amalgamated Bank reported $8.3 billion in total assets, $4.6 billion in net loans, and $7.2 billion in total deposits. Its trust business held $35.0 billion in assets under custody and $14.6 billion in assets under management. The company’s financial health score is rated as "GOOD" by InvestingPro, which offers comprehensive analysis including 8 additional ProTips and detailed financial metrics in its Pro Research Report, available to subscribers.

The press release also contains forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors that could impact the company’s operations and financial results. The information is based on a press release statement from Amalgamated Financial Corp.

In other recent news, Amalgamated Bank reported stronger-than-expected earnings for the fourth quarter of 2024, with an earnings per share (EPS) of $0.90, surpassing the forecasted $0.78. The bank also exceeded revenue expectations, posting $77.89 million against a forecast of $76.92 million. Despite these positive results, Piper Sandler downgraded Amalgamated Bank’s stock from Overweight to Neutral, citing uncertainties related to recent policy announcements by the Trump Administration and ongoing litigation. The administration’s proposal to freeze funding for environmental initiatives, coupled with legal challenges, has created a complex environment for the bank, which emphasizes socially responsible banking.

Amalgamated Bank’s full-year 2024 earnings reached a record $106.4 million, driven by strong loan growth and expanding margins. The bank’s strategic focus on sustainable lending, particularly in renewable energy, has been a key driver of its performance. Looking ahead, the bank has provided full-year 2025 guidance, projecting core pre-tax pre-provision earnings between $159 million and $163 million, with expectations of two Federal Reserve rate cuts. Investments in technology and trust business, along with a focus on residential and commercial PACE loans, are part of the bank’s strategic initiatives for growth. Investors and market watchers will continue to monitor the situation as the bank navigates these developments and their potential implications on operations and financial performance.

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