Amalgamated Financial Q2 earnings surge, but a single multifamily loan default sends nonperforming assets spiking
AMAL sits 98% above its 52-week low of $25.13.
Summary
Amalgamated Financial posted record Q2 earnings, but a single-borrower multifamily loan default caused nonperforming assets to nearly quadruple. Five executives also adopted pre-arranged stock sale plans.
Key Events · Earnings and Guidance · AMAL
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Record Q2 Earnings
Net income of $34.8 million ($1.15 EPS) vs $26.0 million ($0.84 EPS) in Q2 2025, driven by higher net interest income and service charges.
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Nonperforming Assets Surge
Nonperforming assets jumped to $102.7 million (1.09% of assets) from $28.7 million (0.32%) at year-end 2025, primarily due to $78 million in multifamily loans to a single borrower moving to nonaccrual.
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Provision for Credit Losses Triples
Provision for credit losses rose to $17.9 million for H1 2026 from $5.5 million in H1 2025, largely reflecting the single-borrower multifamily loan default.
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Executives Adopt 10b5-1 Sale Plans
Five executives, including the CFO and Chief Banking Officer, adopted Rule 10b5-1 trading plans to sell up to 108,911 shares beginning in September 2026.
Analysis · AMAL · Finance
Record net income of $34.8 million ($1.15 EPS) handily beat the prior year's $26.0 million, but the quarter was marred by a sharp deterioration in credit quality. Nonperforming assets ballooned to $102.7 million, or 1.09% of total assets, up from just 0.32% at year-end. The culprit: $78 million in multifamily loans to a single borrower that moved to nonaccrual status. The provision for credit losses more than tripled to $17.9 million for the first half of 2026. Separately, five executives adopted 10b5-1 trading plans to sell up to 108,911 shares beginning in September 2026, adding a potential overhang.
At the time of this filing, AMAL was trading at $49.76 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $25.13 to $50.92. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.