NEW YORK - Amalgamated Financial Corp. (NASDAQ:AMAL), a bank holding company, declared a dividend of $0.12 per common share, payable on August 22, 2024, to shareholders of record as of August 6, 2024. This announcement came today from the company's Board of Directors, who also noted that future dividends would be determined at their discretion.
Amalgamated Financial Corp., founded as the Amalgamated Bank (NASDAQ:AMAL) of New York in 1923 by the Amalgamated Clothing Workers of America, operates as a full-service commercial bank and a chartered trust company. With a network spanning New York City, Washington D.C., San Francisco, and a commercial office in Boston, Amalgamated Bank caters to both commercial and retail customers with a variety of banking and trust services.
The bank is a member of the Global Alliance for Banking on Values and holds B Corporation® certification, emphasizing its commitment to meeting rigorous social and environmental standards.
As per the figures released for the first quarter ending March 31, 2024, Amalgamated Financial Corp. reported total assets of $8.1 billion, with net loans totaling $4.4 billion and deposits amounting to $7.3 billion. Furthermore, the trust business of the bank managed $35.0 billion in assets under custody and $13.9 billion in assets under management.
In other recent news, Amalgamated Bank has been in the spotlight following several significant developments. The bank reported a strong Q1 for 2024, with core earnings per share (EPS) of $0.83, outperforming expectations, bolstered by significant deposit growth and a favorable outlook for net interest income (NII) and pre-tax, pre-provision (PTPP) income for 2024.
JPMorgan (NYSE:JPM) analyst upgraded the bank's stock price target to $31.50 from $29.50, maintaining an Overweight rating. This comes after the bank experienced a surge in political deposits, which reached approximately $1.5 billion in April, reducing its reliance on higher-cost borrowings.
In another development, Piper Sandler increased their price target for Amalgamated Bank to $29 from $28, keeping an Overweight rating on the stock. This followed a conference call where the bank addressed two major concerns: potential earnings headwind in the fourth quarter due to the anticipated spending of political deposits and issues related to the New York City multifamily portfolio.
Amalgamated Bank also announced a 50% increase in its quarterly dividend, from $0.10 to $0.15 per common share, reflecting the company's strong financial performance. These are recent developments that continue to shape the bank's financial landscape.
InvestingPro Insights
Amalgamated Financial Corp. (NASDAQ:AMAL) continues to demonstrate financial resilience, as evidenced by the recent dividend declaration. Investors interested in AMAL's stock performance will find the following insights particularly informative:
InvestingPro data shows that AMAL has a market capitalization of $974.94M and a robust operating income margin of 48.69% for the last twelve months as of Q1 2024. The company's P/E ratio stands at 10.36, indicating a market valuation that is in line with its earnings. Notably, AMAL has experienced a significant price total return of 69.2% over the past year, showcasing strong investor confidence and market performance.
Two key InvestingPro Tips for AMAL highlight the stock's current market position: the RSI suggests the stock is in overbought territory, which may interest traders looking for momentum or trend reversals. Additionally, the stock is trading at a high P/E ratio relative to near-term earnings growth, which could suggest that the market has high expectations for the company's future performance. With a 52-week high price percentage of 99.16%, AMAL is trading near its peak, reflecting a potentially bullish sentiment among investors.
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