{"id":540860,"date":"2021-09-22T07:04:01","date_gmt":"2021-09-22T11:04:01","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/amalgamated-bank-announces-agreement-to-acquire-amalgamated-bank-of-chicago\/"},"modified":"2021-09-22T07:04:01","modified_gmt":"2021-09-22T11:04:01","slug":"amalgamated-bank-announces-agreement-to-acquire-amalgamated-bank-of-chicago","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/amalgamated-bank-announces-agreement-to-acquire-amalgamated-bank-of-chicago\/","title":{"rendered":"Amalgamated Bank Announces Agreement to Acquire Amalgamated Bank of Chicago"},"content":{"rendered":"
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\n Unites Two Highly Complementary Organizations to Further Enhance\u00a0<\/em>
\n Amalgamated\u2019s Position as America\u2019s Largest ESG-Focused Bank<\/em>\n <\/p>\n

\n Expanded Footprint and Resources Position Combined Bank to Better Serve\u00a0<\/em>
\n Socially Responsible People and Organizations Across the Midwest<\/em>\n <\/p>\n

NEW YORK and CHICAGO, Sept. 22, 2021 (GLOBE NEWSWIRE) — Amalgamated Financial Corp. (Nasdaq: AMAL), the holding company for Amalgamated Bank (\u201cAMAL\u201d), America\u2019s socially responsible bank, today announced it has entered into a definitive agreement to acquire Amalgamated Investments Company, the holding company for Amalgamated Bank of Chicago (\u201cABOC\u201d), for approximately $98.1 million, which includes an earnout of up to $1.1 million, in an all-cash transaction. Although the two entities have Amalgamated in the name, AMAL and ABOC are not currently affiliated.<\/p>\n

ABOC has been dedicated to serving America\u2019s working people since its founding in Chicago in 1922 by the Amalgamated Clothing Workers of America, the same union that founded AMAL. Building on its union heritage, ABOC will now gain access to a broader network to align with the niche segments that AMAL services, including nonprofits, political organizations, philanthropies, sustainability, and social enterprises. ABOC has an attractive, mission compatible customer base including more than 900 unions, total assets of $950 million, loans of $519 million and an industry leading deposit franchise with a total cost of deposits of 9bps on deposits of $836 million as of June 30, 2021. Additionally, as of June 30, 2021, ABOC\u2019s trust business held approximately $13 billion in assets under custody, approximately $2.4 billion in assets under management, and also has an established Corporate Trust business with over $40 billion in assets under administration. Upon closing, the combined company will have approximately $7.6 billion in assets, $6.8 billion in deposits, $3.7 billion in loans, and $19.0 billion of trust assets under management and $52.2 billion of trust assets under custody.<\/p>\n

AMAL was the first publicly traded, ESG-focused bank and this transaction expands its market footprint and builds on its position as the largest bank of its kind in the country. ABOC and AMAL are committed to supporting similar causes, and the combined company will be a powerful platform for growth and innovation. This move also comes at a time when responsible banking and personal financial services are more important than ever in furthering economic, social, racial, and environmental justice.<\/p>\n

The combination will allow AMAL to expand its geographic presence, further strengthen its financial position and better serve socially responsible people and organizations. As a larger platform with an established Chicago base, the combined company can better serve clients with expanded capacity. The company will also further diversify its risk and capitalize on operational and administrative cost synergies, offering the opportunity to invest in talent, products, and technology to benefit the valued customers and communities it serves.<\/p>\n

Lynne Fox, AMAL\u2019s Chair of the Board of Directors said \u201cBoth institutions have been successful community staples for almost 100 years. Our new organization will enable us to build on that legacy, to expand America\u2019s socially responsible bank, and to advance positive social change.\u201d<\/p>\n

\u201cWe are thrilled about joining forces with Amalgamated Bank of Chicago and bringing our shared commitment to socially responsible banking to serve customers in Chicago and the midwestern U.S.,\u201d said Priscilla Sims Brown, AMAL\u2019s President and CEO. \u201cThis acquisition aligns with our disciplined strategy of pursuing accretive opportunities that allow us to expand geographically, strengthen our financial resources and increase our customer base while leveraging our unique expertise in operating as an ESG-driven bank. We have long admired Amalgamated Bank of Chicago and are excited about this reunion of our once-related banks. Together, we have identified key areas of growth and opportunity that we\u2019re ready to start collaborating on.\u201d<\/p>\n

\u201cThis transaction combines two like-minded organizations and strengthens our ability to meaningfully impact the banking system and wider society for the better,\u201d said Robert M. Wrobel, ABOC\u2019s Chairman and CEO. \u201cIt will enhance our ability to serve our customers and communities as well as create opportunities for our employees. I am incredibly proud of the business that the extraordinary Amalgamated Bank of Chicago team has built. I am confident that the partnership of the strong leadership teams and dedicated employees at both organizations will lead the business to even greater heights in service of our important goals for society and the planet.\u201d<\/p>\n

At the close of the transaction, which is targeted to occur by the end of the year, AMAL\u2019s President and CEO, Priscilla Sims Brown, will lead the combined company, and ABOC\u2019s current Chairman and CEO, Robert M. Wrobel, and its President, James T. Landenberger, will serve as transitional consultants to the combined company through December 31, 2022. Some members of ABOC\u2019s current board will join a new advisory board that will be established after the closing, bringing together the strong leadership of both banks\u2019 experienced local and national labor leaders.<\/p>\n

\n Strategic Rationale<\/strong>\n <\/p>\n