NEW YORK - Amalgamated Financial Corp. (NASDAQ:AMAL), the parent company of Amalgamated Bank , has announced an increase in its quarterly dividend. The board of directors approved a $0.02 hike per common share, which equates to a 17% rise, setting the new dividend at $0.14. This change is slated to take effect with the dividend payable on February 27, 2025, to shareholders on record as of February 11, 2025. According to InvestingPro data, this marks the company's third consecutive year of dividend increases, with a notable 20% dividend growth over the last twelve months. The current dividend yield stands at 1.3%.
The company, a Delaware public benefit corporation, operates as a bank holding entity, providing commercial banking and financial services through Amalgamated Bank. With a history dating back to 1923, the bank was initially established by the Amalgamated Clothing Workers of America and has since grown to include a network of branches in New York City, Washington D.C., San Francisco, and a commercial office in Boston. The bank's growth strategy has proven successful, with InvestingPro analysis showing a strong 42% total return over the past year and a market capitalization of $1.1 billion.
Amalgamated Bank, which operates as a full-service commercial bank and chartered trust company, also participates in the Global Alliance for Banking on Values and holds a B Corporation® certification. As reported in their latest financial statements as of September 30, 2024, Amalgamated Financial Corp. recorded total assets of $8.4 billion, net loans of $4.5 billion, and deposits totaling $7.6 billion. Additionally, the trust business managed $35.4 billion in assets under custody and $14.6 billion under management. The company maintains strong financial health, with InvestingPro data showing a healthy 17% return on equity and a conservative debt-to-equity ratio of 0.13.
The bank's commitment to serving both commercial and retail customers is reflected in its comprehensive range of banking and trust services offered nationally. However, it's important to note that future dividend payments are not guaranteed and will be determined at the discretion of the Board of Directors.
This financial update is based on a press release statement from Amalgamated Financial Corp. and provides investors with the latest information on the company's dividend policy.
In other recent news, Amalgamated Financial Corp. has extended its union contract with the Office & Professional Employees International Union until June 2026. The new agreement includes an annual wage increase of 3.5% and introduces improved terms for employees, such as a healthcare reimbursement account. The company's ability to provide these benefits is supported by its solid financial performance, which includes revenue growth of 12.8%.
Amalgamated Bank's recent third-quarter earnings report revealed a net income of $27.9 million and a core net income of $28 million. Deposits surged to $7.6 billion, driven by growth in social, philanthropic, and sustainable funds, and loans increased by 2.7%.
Following the bank's strong financial results, Piper Sandler raised its price target for Amalgamated Bank to $42 from $39, maintaining an Overweight rating on the stock. The bank also reported an improved Tier 1 leverage ratio of 8.63% and revised its full-year guidance upwards, expressing optimism about growth prospects, particularly in sustainable banking. Despite anticipating elevated expenses in the fourth quarter, Amalgamated Bank remains committed to its growth and sustainability goals.
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