Last week we did something for the first time in our 94 year history; we entered into an agreement to acquire another bank. I am thrilled to soon officially welcome New Resource Bank into the Amalgamated family.
For those that don’t know their background, New Resource Bank is a very unique financial institution in San Francisco, with deep expertise in sustainability issues and a powerful network of clients in the clean energy, green real estate, and organic products industries. They are a founding member of the Global Alliance for Banking on Values and, like Amalgamated, a Certified B Corporation.
There are near countless reasons why I am excited by this venture. The first is the opportunity it affords us to grow. The combined bank will enable us 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. We’ve seen this mission-based model work in Europe with Triodos Bank and in Canada with VanCity.
Secondly, part of our long-term plan has been to expand our products and services to markets in new parts of the country. Acquiring New Resource Bank is a significant step on that journey and gives us an immediate foothold in the San Francisco Bay Area, a key progressive market. This expansion will put Amalgamated in three of the most progressive cities in the U.S.
A third reason relates to our internal culture. New Resource is a mission-based bank serving values-based businesses and non-profits that are building a more sustainable world. This is a perfect cultural fit between like-minded banks. As mission-driven institutions, our clients, customers and employees care deeply about creating a more just, compassionate and sustainable society. This transaction will enable our two entities to combine cultures seamlessly to deliver extraordinary value, targeted products, and best-in-class service to our customers and clients.
Fourth, by taking advantage of our combined strengths, our future earnings potential is substantially stronger. This acquisition will enable us to develop and promote new products and services to further benefit communities nationwide. New Resource Bank brings credit talent, client relationships and experience which, combined with Amalgamated’s higher credit limit, will allow the combined bank to offer considerably larger loans to individuals and organizations than New Resource could offer previously. We are particularly eager to expand our work with companies focused on sustainability efforts and looking for creative lending solutions.
With this great opportunity before us, we can create a bank that truly serves the needs of the broad changemaking community. It offers unlimited potential to deliver on our unique brand promise of giving everyday people a real voice in our nation’s economic future, developing the financial infrastructure to give back (and providing others with the means to give back) to the causes that have a real impact on people’s lives, and emerging as the go-to financial resource and partner for people and organizations who want to make meaningful, positive change in our society. I can’t wait to get started.