GET DAILY SIGNALSAmalgamated Financial (AMAL) Delivers Record Third-Quarter Results
Key Takeaways
- Amalgamated Financial reported record GAAP net income of $36.4 million, or $1.20 per diluted share, for the third quarter of 2026.
- Core (non-GAAP) net income reached a record $34.6 million, or $1.14 per diluted share, about 5% above analyst consensus.
- Operating revenue surpassed $100 million for the first time in the bank's history, coming in at $101.7 million.
- Net interest income hit a record $87.9 million while net interest margin held essentially steady at 3.77%.
- Management raised its full-year 2026 outlook for net interest income and core pre-tax, pre-provision earnings.
- The stock moved higher following the report, reflecting investor approval of the record results and stronger guidance.
Why These Results Matter
Amalgamated Financial Corp. is the holding company for Amalgamated Bank, a New York-based, values-oriented commercial bank serving labor unions, not-for-profit organizations, and politically active customers. Its third-quarter results matter because they test whether the bank's mission-aligned deposit franchise can keep funding profitable loan growth as election-cycle deposits ebb and interest rates shift. Coming off record profitability in prior quarters, this report was a chance for management to show that its earnings power is durable rather than tied to one-time factors. The results landed in the middle of an election cycle that directly influences the bank's political deposit base, making the quarter a meaningful read on both funding stability and margin resilience. To put the numbers in context with peers, I also checked this using Tickeron’s AI Screener.
Breaking Down the Reported Numbers
For the third quarter ended September 30, 2026, Amalgamated Financial posted record GAAP net income of $36.4 million, or $1.20 per diluted share, up from $26.8 million a year earlier. Core (non-GAAP) net income, which excludes items such as securities gains and certain fee income, rose to a record $34.6 million, or $1.14 per diluted share, topping the consensus estimate of roughly $1.08.
Operating revenue reached a record $101.7 million, above the approximately $97.5 million to $99.3 million analysts had projected, driven by net interest income (NII, the earnings banks generate from the spread between loan and deposit rates) of $87.9 million. Net interest margin (NIM, the profitability of interest-earning assets) declined just one basis point to 3.77%. The efficiency ratio, which measures expenses relative to revenue, improved to about 48%, well ahead of estimates.
On the balance sheet, on-balance-sheet deposits grew 3.0% to $8.7 billion, while commercial loans rose 2.6% and PACE assessments (Property Assessed Clean Energy financing) grew 4.0%. Tangible book value per share, a key measure of shareholder net worth excluding intangible assets, was $27.54, slightly below some forecasts. Management raised full-year guidance for NII to $341 million to $342 million and for core pre-tax, pre-provision earnings to $193 million to $194 million.
Market Reaction and Investor Sentiment
Investors responded positively to the report, with AMAL shares climbing more than 5% intraday after the release. The market appeared to focus on the record earnings, the first-ever $100 million revenue quarter, and the upwardly revised guidance rather than the modest miss in tangible book value per share. The stable net interest margin and flat deposit costs were also seen as reassuring at a time when rising funding costs are pressuring many regional banks. Sentiment heading into the print had been cautious, given the bank's exposure to election-cycle political deposits and a previously disclosed multifamily credit relationship. The solid results and improved outlook helped ease those concerns, reinforcing the view that the bank's core franchise remains resilient.
Forward Outlook and Key Factors to Monitor
Looking ahead, management signaled that the fourth quarter will follow the bank's typical election-cycle pattern. As campaign-related deposits wind down, the funding mix is expected to shift away from non-interest-bearing balances, which may create modest near-term pressure on the net interest margin. Management said it expects NII in the fourth quarter to look similar to the third quarter, while projecting slight margin compression as the election cycle concludes.
Investors should monitor several factors in the coming quarters. First, watch how deposit betas behave—that is, how much of any future rate moves the bank passes through to depositors—since this will shape margin trends into 2027. Second, keep an eye on the previously disclosed multifamily credit relationship and the pace of charge-offs, as credit quality remains a focal point. Third, track the bank's efforts to redeploy capital from lower-yielding consumer solar and residential loans into higher-yielding commercial loans and PACE financing, which management sees as a growth driver.
Finally, the bank's full-year 2027 guidance, expected in January, will offer a clearer picture of expense trends, technology investments, and margin trajectory as the company settles into its new headquarters and continues building out its infrastructure.
Using AI Tools in My Research Process
When evaluating regional banks like this one, I often turn to Tickeron’s AI Screener to quickly compare fundamentals, technical patterns, and peer performance across the sector. It helps surface relevant data points and trade ideas without hours of manual work, which is especially useful around earnings season. I find it complements my own analysis by highlighting emerging opportunities I might otherwise overlook.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for AMAL turns positive, indicating new upward trend
AMAL saw its Momentum Indicator move above the 0 level on October 20, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 92 similar instances where the indicator turned positive. In 69 of the 92 cases, the stock moved higher in the following days. The odds of a move higher are at 75%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for AMAL just turned positive on October 16, 2026. Looking at past instances where AMAL's MACD turned positive, the stock continued to rise in 35 of 50 cases over the following month. The odds of a continued upward trend are 70%.
Following a +1.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where AMAL advanced for three days, in 212 of 305 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMAL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 66%.
The Aroon Indicator for AMAL entered a downward trend on October 16, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 8 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 10 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 57, placing this stock better than average.
The Tickeron SMR rating for this company is 20 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. AMAL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 81 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.712) is normal, around the industry mean (1.246). P/E Ratio (12.651) is within average values for comparable stocks, (13.217). Projected Growth (PEG Ratio) (1.030) is also within normal values, averaging (1.190). Dividend Yield (0.014) settles around the average of (0.035) among similar stocks. P/S Ratio (3.915) is also within normal values, averaging (3.738).
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a regional bank
Industry RegionalBanks