Amalgamated Financial (AMAL) withdraws its application for regulatory approval of the acquisition of ABOC and is no longer proceeding with the transaction


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Amalgamated Financial Corp. (Nasdaq: AMAL), the holding company of Amalgamated Bank (“AMAL” or the “Bank”), the socially responsible American bank, today announced that it has withdrawn its application for regulatory approval to acquire Amalgamated Bank of Chicago (“ABOC”) due to the inability to obtain such approval. Consequently, AMAL no longer proceeds with the transaction.

AMAL reaffirmed its full-year 2022 standalone guidance to achieve pre-tax pre-provision basic profit of approximately $75-85 million, net interest income of approximately $184-192 million. dollars and balance sheet growth of approximately 5%, including high single-digit organic loan growth. AMAL plans to continue investing in its four-pillar organic growth strategy, with a particular focus on its lending initiatives to drive lending growth.

At the same time, AMAL’s Board of Directors approved an increase in the Bank’s common stock repurchase authorization to an aggregate amount of up to $40 million. The exact timing and amount of share buyback activity will be informed by economic and regulatory considerations as well as AMAL’s capital position, earnings outlook and capital deployment priorities.

About Amalgamated Financial Corporation

Amalgamated Financial Corp. is a Delaware public benefit corporation and bank holding company engaged in commercial banking and financial services through its wholly owned subsidiary, Amalgamated Bank. Amalgamated Bank is a New York-based full-service commercial bank and licensed trust company with a combined network of five branches in New York, Washington, DC, and San Francisco, and a commercial office in Boston. Amalgamated Bank was established in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the nation’s oldest labor unions. Amalgamated Bank provides commercial and trust banking services nationwide and offers a full range of products and services to commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values ​​and is B Corporation® certified. As of December 31, 2021, our total assets were approximately $7.1 billion, total net loans approximately $3.3 billion, and total deposits approximately $6.4 billion. Additionally, as of December 31, 2021, our fiduciary business had approximately $40.2 billion in assets under custody and approximately $17.3 billion in assets under management.

Forward-looking statements

This press release contains statements that qualify as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding Amalgamated Banks’ intention to repurchase common stock under the share repurchase program, the expected source of funding for such repurchases, and the expected financial performance and results for the full year 2022, including pre-tax profits and revenues net interest. These statements are based on management’s current expectations and are subject to risks, uncertainties and changes in circumstances, which may cause actual results, performance or achievements to differ materially from the results, performance or achievements anticipated. . There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements. These include, among other things, the market price of Amalgamated Bank’s shares, the nature of other investment opportunities presented to Amalgamated Bank, cash flows and other factors identified in Amalgamated Bank’s filings with from the Federal Deposit Insurance Corporation as well as (i) deterioration in the financial condition of borrowers leading to a significant increase in loan losses and provisions for such losses; (ii) the continuation of a historically low short-term interest rate environment; (iii) our inability to maintain the historical growth rate of the loan portfolio; (iv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, review findings or regulatory developments; (v) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on our results, including due to net interest margin compression; (vi) greater than expected adverse conditions in national or local economies, including in our major markets, including, but not limited to, adverse impacts and disruptions resulting from the novel coronavirus outbreak, or COVID-19, which may continue to negatively impact our business, operations and performance, and may continue to negatively impact our credit portfolio, share price, borrowers and economy in as a whole, both nationally and internationally; (vii) unforeseen fluctuations or changes in interest rates on loans or deposits or which affect the yield curve; (viii) results of regulatory reviews; (ix) potential deterioration of real estate values; (x) changes in laws, regulations, policies or administrative practices, whether by judicial, governmental or legislative action; (xi) increased competition for experienced executives in the banking industry; and (xii) risk factors included in our filings with the Securities and Exchange Commission. Amalgamated Bank disclaims any obligation to update or revise any forward-looking statements contained in this press release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise. .

Contact Investor:Jamie LillisSolebury Trout[email protected]800-895-4172

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Source: Merged financial company.


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