Amalgamated Bank Charts Growth Path with New Mortgage Alliance and Dividend Boost

Amalgamated Bank US0226711010

Amalgamated Bank has entered a strategic partnership to reshape its mortgage operations, a move announced alongside robust quarterly earnings and a significant dividend increase. This combination of initiatives highlights the institution's focused expansion strategy.

The bank's fourth-quarter 2025 results, released in late January, provided a solid backdrop for its strategic announcements. Revenue reached $87.91 million, surpassing analyst expectations by 3%. Earnings per share came in at $0.91, matching forecasts precisely.

A key driver was the performance of net interest income, which rose to $77.9 million. This resulted in a net interest margin of 3.66%, indicating stable profitability in its core lending activities.

Strategic Shift in Mortgage Lending

The newly formed alliance with independent service provider Embrace Home Loans represents a strategic pivot. Under this agreement, Amalgamated Bank will refer clients seeking residential mortgage financing to its partner. Embrace Home Loans will then manage the processing and servicing through its specialized platform.

This partnership allows Amalgamated Bank to offer customers a wider array of mortgage products without diverting extensive internal resources. The bank can consequently concentrate its efforts on broader strategic objectives while maintaining a competitive offering in the housing finance sector.

Confident Outlook and Shareholder Returns

Management expressed optimism for the year ahead, projecting that net interest income for the full 2026 fiscal year could climb to approximately $331 million. This forecast implies a growth rate of 10% to 11%.

In a clear sign of financial confidence, the Board of Directors authorized a 21% increase in the quarterly cash dividend. The payout will rise by three cents to $0.17 per share and is scheduled for distribution on February 19.

Operational Efficiency in Focus

Concurrent with these financial and strategic developments, the bank is optimizing its physical footprint in New York City. Its branch at Union Square is slated to close at the end of March. Operations will resume at a new location on Park Avenue South starting April 1.

Market observers will monitor upcoming quarterly reports to assess whether the redesigned mortgage strategy delivers the intended efficiency gains and supports the bank's sustained growth trajectory.