What Happened?
Shares of socially responsible bank Amalgamated Financial (NASDAQ:AMAL) jumped 3.8% in the afternoon session after the company reported strong third-quarter 2025 earnings that surpassed analyst expectations and raised its full-year guidance.
The bank announced adjusted earnings of $0.91 per share on revenue of $85.61 million, beating forecasts of $0.88 per share and $83.33 million in revenue. The positive results were driven by significant growth on both sides of the balance sheet. Amalgamated Financial saw a large increase in deposits, generating over $415 million in new funds, and also experienced faster loan growth. Furthermore, the bank's net interest margin, a key measure of profitability, expanded. The company also improved its asset quality, with nonperforming assets declining, and raised its core earnings guidance for the full year, signaling confidence in its performance.
After the initial pop the shares cooled down to $28.50, up 3.9% from previous close.
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What Is The Market Telling Us
Amalgamated Financial’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock dropped 6.7% on the news that disclosures from two lenders raised concerns about deteriorating loan quality across the industry. The drop was triggered by specific incidents that have spooked investors. Zions Bancorp announced a $50 million charge-off—a debt the bank doesn't expect to collect—on a single loan. Separately, Western Alliance Bancorp revealed it was dealing with a borrower who had failed to provide proper collateral. These events are compounding existing anxieties about the regional banking sector, which is already under pressure from elevated interest rates and declining commercial real estate values. The news heightened investor concerns that more cracks could appear in borrowers' creditworthiness, potentially leading to increased loan losses and reduced profitability for other banks in the sector.
Amalgamated Financial is down 14.1% since the beginning of the year, and at $28.50 per share, it is trading 25.3% below its 52-week high of $38.13 from November 2024. Investors who bought $1,000 worth of Amalgamated Financial’s shares 5 years ago would now be looking at an investment worth $2,401.
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