AMAL credit losses surge on $78M single-borrower default; nonperforming assets triple to $99M

Filed May 5, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 6, 2025 · ~2 min read

Key Changes

• high

  Provision for credit losses jumped from $0.6M to $13.5M year-over-year, driven by $9.2M specific reserve on $78M multifamily loans to single borrower who indicated expected default. Nonperforming assets tripled to $98.9M (1.08% of assets) from $33.9M (0.41%), with $71.5M from same borrower now on nonaccrual.

  MD&A: Provision for Credit Losses & Nonperforming Assets verify on EDGAR →
• medium

  Net interest margin expanded 20 basis points to 3.75% from 3.55%, driven by higher yields on earning assets and improved deposit mix. Non-interest-bearing deposits rose to 40.7% from 39.3%, supporting profitability despite credit deterioration.

  MD&A: Net Interest Margin verify on EDGAR →
• medium

  Political deposits surged 74% to $1.86B from $1.07B, reflecting 2026 midterm election cycle. While low-cost demand deposits, these balances are volatile and expected to decline post-election, creating potential liquidity headwind.

  MD&A: Political Deposits verify on EDGAR →