AMAL Stock Forecast & Price Target

Amalgamated Financial is well positioned by a differentiated funding franchise that keeps deposit costs low and sticky, supported by politically and socially responsible organizations that have driven strong noninterest-bearing deposit growth and broad-based balance sheet expansion. Its latest results reinforced that strength, with PPNR beating estimates by $0.10, operating EPS of $1.10, NIM rising to 3.78%, loans up 2.3%, deposits up 3.4%, and strong capital ratios of CET1 14.2% and TCE 8.7%. Even with a single multifamily credit issue, credit has normalized, provisioning fell to $4.4M, and management’s raised FY26 NII guidance of $338–$340mm and core PTPP of $188–$190mm point to durable earnings momentum.

Amalgamated Financial is facing a cautious fundamental outlook because credit costs are still pressuring results, with provision missing by $0.01 and net charge-offs at 25 bps, while the reserve ratio slipped to 1.34% and nonperforming assets rose 2 bps to 1.99% on a $5.3mm NYC multifamily loan. Although criticized loans improved to 3.0%, asset-quality momentum remains fragile given ongoing exposure to multifamily relationships and the risk of further deterioration in a weak economic environment. Balance-sheet strength is also not compelling, as tangible book value per share grew only 1.6% sequentially to $26.59 while the TCE ratio fell 14 bps to 8.67%, leaving limited cushion against interest-rate, credit, and regulatory risks.