NEW YORK, Dec. 15, 2017 (GLOBE NEWSWIRE) -- Amalgamated Bank (“Amalgamated”) and New Resource Bancorp, the parent company of New Resource Bank ((OTC:NRBC); together, “New Resource”) today announced the signing of a definitive merger agreement by which Amalgamated will acquire New Resource for a total consideration of approximately $58.5 million, in a 100% stock consideration transaction for New Resource shareholders and the cash out of existing New Resource stock options. Under the terms of the agreement, New Resource shareholders will receive 0.0315 shares of Amalgamated common stock for each share of New Resource, or a purchase price of $9.67 per share. The acquisition of New Resource represents the opportunity to expand Amalgamated’s geographic presence to the San Francisco Bay Area as well as deepen its model of impact banking.
The combined bank will create the largest values-based bank in the U.S., offering significant expansion in products and services, greater geographic scope, and increased financial resources which will together enhance the experience for the customer, communities, and employees of both institutions. Together, Amalgamated and New Resource, both certified B Corps and Global Alliance for Banking on Values (GABV) banks, are scaling sustainable banking across the nation to confront the serious climate and social inequities of our time and restore the financial system to its proper role in support of people and the planet.
“The combination of Amalgamated and New Resource will create a platform for a nationwide, values-based financial institution that can serve the interests of changemakers around the country,” said Keith Mestrich, President and CEO of Amalgamated Bank. “The transaction brings together two complementary and like-minded organizations who share a mission-driven orientation. I believe that, with the addition of New Resource, our bank can become the go-to financial resource and partner for the people, companies, and organizations dedicated to creating a better world.”
President and CEO of New Resource Bank, Vincent Siciliano, commented, “We are excited about the ability to grow our impact with a bank that shares our values. From the very beginning, we have sought to build a bank with a strong commitment to the triple-bottom-line of people, planet and prosperity – a commitment that is shared by Amalgamated. Our combination is a testament to what we have built at New Resource over the years. Our deep expertise in sustainable operations and lending, together with our network of values-based clients, complements Amalgamated’s offerings and capabilities. We look forward to continuing to serve the sustainable business and nonprofit community at a larger scope and scale together with Amalgamated.”
Through the transaction, Amalgamated will build on New Resource’s successes in the western U.S. to have a significant impact for the companies’ respective communities. The combined bank will have strong footholds in four key communities where changemaking organizations are concentrated – New York City, Washington, D.C., San Francisco, and Boulder. The Bank intends in the future to continue to expand in values-aligned cities throughout the country.
Amalgamated’s size and product offerings will enable New Resource founding mission to be realized much sooner and with national impact. The combined entity will boast a highly complementary customer base and segment expertise as well as a robust financial profile, with a healthy balance sheet and substantially stronger future earning potential. The acquisition will allow Amalgamated to scale their mission to serve progressive and social causes by expanding into new product lines, new geographies, and absorb risks to help a diversity of organizations working to make a positive difference in their communities.
The Boards of Directors of both companies have unanimously approved the transaction. The acquisition is subject to customary closing conditions, including New Resource shareholder approval of the merger agreement and receipt of required regulatory approvals, including by the FDIC and the New York State Department of Financial Services. The companies expect to complete the transaction in the second quarter of 2018. Following the close of the transaction, Keith Mestrich will continue in his role as President and CEO of the newly combined entity.