Amalgamated Financial's Q3 core EPS beats on higher interest income

Amalgamated Financial

Yesterday 11:34

Overview
US commercial bank's Q3 core EPS beat analyst expectations, net income reached record levels
Company's earnings growth driven by higher net interest and non-interest income, offset by higher expenses
Company repurchased about 137,000 shares, with $33.5 mln remaining buyback capacity

Outlook
Company did not provide specific financial guidance for future quarters or full year in the press release

Result Drivers
NET INTEREST INCOME - Q3 net income increase was primarily driven by a $1.9 mln rise in net interest income, reflecting higher average loan balances and commercial loan originations
NON-INTEREST INCOME - Higher retail banking fees and consumer wealth management and investment services contributed to a $1.5 mln increase in non-interest income
CREDIT LOSS PROVISION - Q3 provision for credit losses decreased by $0.8 mln, mainly due to lower charge-offs and fewer reserve increases

Company press release: ID:nBw76MwN1a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Core EPS
Beat
$1.14
$1.08 (3 Analysts)
Q3 EPS
 
$1.20
 
Q3 Core Net Income
 
$34.60 mln
 
Q3 Net Income
 
$36.43 mln
 
Q3 Net Interest Income
 
$87.94 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Amalgamated Financial Corp is $55.00, about 15% above its October 21 closing price of $47.82
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%
Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality
Oct 21 - Pinnacle Financial Partners Q3 adjusted profit beats estimates on loan, fee income growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)