Who is Amalgamated Bank? Are they mission-aligned?
Amalgamated is a 95-year-old bank founded by the Amalgamated Clothing Workers of America, a union of immigrants.
Like us, they are a Certified B Corp and a member of the Global Alliance for Banking on Values. Their goal is to be the financial institution for the progressive community – those people and organizations working to make the world more just, compassionate and sustainable.
Today, the bank has grown to a $4.2 billion bank.
Why is New Resource Bank merging with Amalgamated?
The combination of Amalgamated Bank and New Resource Bank presents an opportunity to build a platform for a nationwide, values-based financial institution that can serve the interests of changemakers — the people, companies and organizations dedicated to creating a better world. These include mission-aligned businesses, non-profit organizations, trade unions, advocacy groups, and political organizations across the nation, as well as individuals.
By aggregating the resources of our organizations, we can create a bank that truly serves our community, has a real voice in the nation’s economic discussion, gives back to the causes we believe in, and truly emerges as a go-to financial resource and partner for people and organizations who want to do good for people and the planet.
Through our merger, Amalgamated will gain the expertise of our sustainability lending and leadership and we will gain the scale of nationwide consumer and commercial products and services as well as lending. We share a synergistic vision to scale our model of impact banking to create a more just, compassionate and sustainable society. Working together, we will be able to achieve this at a faster pace than working alone.
You always said you were not a bank that was for sale. So why did you sell?
I know this news will come as a surprise to many of you, especially our long-time clients and friends. We were not designed with a build, scale and sell model. However, joining forces with Amalgamated aligned so robustly with our vision and mission, and their products and services matched perfectly with what our community has been seeking. We will retain influence on Amalgamated’s strategic vision, as Mark Finser, our current Chairman of the Board and a founding board member, will join their board and our existing board of directors will become a national strategic advisory committee to execute our shared vision.
What is Amalgamated’s lending philosophy?
Throughout its history, Amalgamated has always been a leader in providing support to affordable housing. Today, the company’s lending portfolio includes nearly $1 billion in multifamily loans, almost exclusively lending to projects in low and middle income communities with a special emphasis on CRA-eligible loans. Amalgamated also retains over $600 million of residential loans on its balance sheet, helping working families meet one of their core needs. Amalgamated’s $650 million portfolio of C&I loans includes credits to its core clients in the labor, nonprofit and political sector as well as loans to middle market companies. One of the things that Amalgamated’s leadership is most looking forward to in a combination with New Resource Bank is to gain the sector expertise in sustainability to help transform its lending portfolio to be more mission aligned. Currently, they do not lend to any companies, projects or people that are working against social, economic or environmental progress.
How can I learn more about Amalgamated?
Amalgamated Bank is a fellow B Corp and Global Alliance for Banking on Values (GABV) member with a long history of supporting workers.
Amalgamated was New York City’s first labor bank, founded in 1923 by the Amalgamated Clothing Workers of America (ACWA). Today, Amalgamated Bank is the largest majority union-owned bank in the United States. Amalgamated is proud to be an advocate for the advancement of workers’ rights, offer products and services designed to support working families, and promote corporate responsibility through shareholder activism.
Amalgamated has retail branches across four boroughs of New York City and one in Washington, D.C. By merging with New Resource Bank, they are gaining their first San Francisco and Boulder presence.
General Website: https://www.amalgamatedbank.com/
Impact Report: https://www.amalgamatedbank.com/impact-report
How will this transaction benefit me?
The combined bank will offer an enhanced line for products and services for our clients, such as higher commercial lending limits, expanded business cash management and investment management and trust services. Additionally, it will provide access to a bigger network of progressive people and organizations that have similar beliefs and ideals.
Is there anything I need to do now? When will I become an Amalgamated client?
No, there is nothing you need to do at this time. You can continue to bank as usual, using your New Resource Bank debit card, checks, website, and online banking. You should also continue to make any loan payments as usual. We will notify you in writing well in advance about any changes to your account(s) and services. These deals take time to get completed and to get regulatory approvals. Once the merger is completed, we will provide updated information about your specific account but even after completion of the deal, it will take us months to convert systems.
Who will the bank leadership be?
Our CEO Vince Siciliano intends to retire following a transition period with the combined company. The CEO of Amalgamated is Keith Mestrich.
Will the New Resource Bank Board of Directors remain?
Mark Finser, who is currently New Resource Bank’s Chairman and a founding board member, will join the Board of Amalgamated. The full New Resource Board will become a national strategic advisory committee for the combined bank to execute our shared vision of a national values-based bank.
What happens now? Are you now one company?
No, not yet. Right now we have just announced our intention to merge. The deal needs regulatory approval which we hope to receive in the coming months, as well as approval by New Resource shareholders. Our hope is that the deal is finalized in the springtime of 2018.
What will happen to your Boulder office?
We look forward to continuing to grow our presence in Colorado together with Amalgamated.
Will my account number or routing number change?
Your account number or routing number will not change in the short run. When our systems combine in late 2018, there may be changes at that time. We will notify you in advance so you can properly prepare.
What will happen to my deposits, checks, ATM card, bill pay and wires?
There will be no immediate change in how any of this works.
Will there be any new products and services offered?
Not immediately, but once the deal closes, you will have the opportunity to access Amalgamated’s set of products and services, which are far more expansive than our current product suite.
Will your branch close?
No, our branch in downtown San Francisco will remain open and you can expect the same staff to serve you.
Will my bank deposits continue to be covered by FDIC Insurance?
Yes, the same FDIC laws will apply. Visit FDIC.gov for details.
I am a New Resource Bank shareholder. Where can I find out more about my stock?
As a shareholder of New Resource Bancorp you will be sent a proxy statement that will describe the transaction and you will have the opportunity to vote on the merger at a meeting of the shareholders likely during the first quarter of 2018. The proxy statement will contain a detailed description of the merger.
When will Amalgamated and New Resource Bank merge as one bank?
We are targeting the final regulatory approval in spring 2018. We will provide more information to all of our clients about the specifics around integration as that date becomes certain.
Will the bank name change to Amalgamated?
We will be operating as a division of Amalgamated and have no plans to change our name for the time being.
Will there be staff reductions?
It is unclear at this point what the future staffing will look like as Amalgamated wants to first get to know us and how we operate. As soon as we have clarity on this—we are hoping in January—we will be fully transparent about what the future holds for every one of our employees.
How can I stay current with any changes that might be happening?
We will be updating our FAQs on this page with new information as it is available. You will also be contacted with any changes related to your accounts. Please contact us at any time at 415.995.8100 or [email protected].
We will also be holding a series of webinars for our clients to learn more about the merger and answer your questions. Please check our Events page for details.
What should I do if I have additional questions?
Please visit System Upgrade: Tools & Resources for step-by-step guides for online banking, Quicken, and QuickBooks as well as videos on how to use our new system.