NEW YORK - Amalgamated Financial Corp. (NASDAQ:AMAL), the bank holding company for Amalgamated Bank (NASDAQ:AMAL), has announced a regular dividend of $0.12 per share. The dividend is scheduled for payment on November 21, 2024, to shareholders on record as of November 5, 2024. The declaration of future dividends will remain at the discretion of the Board of Directors.
Amalgamated Bank, a full-service commercial bank, operates a network of five branches in key cities across the United States and a commercial office in Boston. Established in 1923 by the Amalgamated Clothing Workers of America, the bank has a longstanding history tied to labor unions and currently offers a range of financial services to both commercial and retail customers.
As a member of the Global Alliance for Banking on Values and a certified B Corporation®, Amalgamated Bank aligns with ethical banking principles and sustainable business practices. The bank's financial position as of June 30, 2024, shows total assets of $8.3 billion, net loans of $4.4 billion, and total deposits amounting to $7.4 billion. In its trust business, the bank held $34.6 billion in assets under custody and $14.0 billion in assets under management.
The announcement of the dividend reflects the company's ongoing commitment to providing value to its shareholders and its confidence in the financial stability of the institution. The information is based on a press release statement from Amalgamated Financial Corp.
In other recent news, Amalgamated Bank has been making waves in the financial sector. The bank's Q2 earnings surpassed expectations by $0.13 per share, a development that Keefe, Bruyette & Woods responded to by increasing their price target for the bank's shares from $30.00 to $35.00, maintaining an Outperform rating. This robust financial performance was largely due to a significant growth in political deposits, which increased by over 20% quarter-over-quarter.
Piper Sandler also maintained its Overweight rating on Amalgamated Bank, with a steady price target of $36.00, following investor meetings where senior executives provided insights into the bank's operations and prospects. These meetings highlighted Amalgamated Bank's focus on its political deposit business, especially in light of the forthcoming Presidential election.
The bank reported a deposit growth of over $759 million in the second quarter, primarily from political, union, and non-profit customer segments. This, coupled with an improved Tier One leverage ratio and an increase in net loans receivable, contributed to the bank's optimistic outlook for the remainder of the year and into 2025. These recent developments indicate a strong financial position for Amalgamated Bank.
InvestingPro Insights
Amalgamated Financial Corp.'s recent dividend announcement aligns with its strong financial performance and shareholder-friendly policies. According to InvestingPro data, the company boasts a dividend yield of 1.41% and has demonstrated impressive dividend growth of 20% over the last twelve months. This commitment to increasing shareholder returns is further supported by an InvestingPro Tip highlighting AMAL's high shareholder yield.
The bank's solid financial footing is evident in its profitability metrics. With a P/E ratio of 10.47, AMAL appears to be trading at a reasonable valuation compared to its earnings. The company's operating income margin stands at a robust 49.44%, indicating efficient operations and strong cost management.
AMAL's stock performance has been particularly noteworthy, with a one-year price total return of 115.12% and a six-month return of 50.68%. This exceptional growth is reflected in another InvestingPro Tip, which notes that AMAL is trading near its 52-week high, currently at 96.69% of that peak.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights, with 7 more tips available for Amalgamated Financial Corp. These tips could provide valuable context for understanding the company's future prospects and potential risks.
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