The Bank Slate


Amalgamated in N.Y. entering Chicago with acquisition

Amalgamated Financial in New York will enter Chicago with an agreement to buy Amalgamated Bank.

The $6.6 billion-asset Amalgamated Financial said in a press release Wednesday that it will pay $98.1 million in cash, including an earnout of up to $1.1 million, for the $950 million-asset Amalgamated Bank. The deal is expected to close by the end of this year. 

The Chicago bank was formed in 1922. It has $836 million of deposits and $519 million of loans. 

“We 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.,” Priscilla Sims Brown, Amalgamated’s president and CEO, said in the release.

“This 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,” she added.

Robert Wrobel, the Chicago bank’s chairman and CEO, and James Landenberger, its president, will serve as consultants to the combined company through the end of next year. 

Amalgamated Financial said it should take less than three years to earn back any dilution to its tangible book value. The deal should be 17.5% accretive to the company’s earnings per share. 

Amalgamated Financial said it expects to incur $18.1 million of merger-related expenses. It plans to cut about a quarter of Amalgamated Bank’s annual noninterest expenses.

Keefe, Bruyette & Woods and Nelson Mullins Riley & Scarborough advised Amalgamated Financial. Piper Sandler and Hinshaw & Culbertson advised Amalgamated Bank.

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