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Amalgamated Bank eyes Los Angeles, Boston, Chicago as possible expansion markets

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Amalgamated Bank eyes Los Angeles, Boston, Chicago as possible expansion markets

Amalgamated Bank is still on the prowl for another deal.

After expanding into San Francisco with its $58.8 million deal for New Resource Bancorp, the New York-based bank is evaluating additional opportunities to bring its unique structure to another major U.S. market, President and CEO Keith Mestrich said Sept. 4.

"If an acquisition is the right way to get there, we'll do that," he said at the Raymond James U.S. Bank Conference in Chicago. "We've been pursuing those."

The chief executive specifically named Boston, Los Angeles and Chicago as markets where Amalgamated's model could be successfully replicated if the opportunity makes sense. Those three markets have been on Amalgamated's radar since at least 2017, when Mestrich mentioned them as possible growth opportunities.

Founded in the 1920s by a labor union, Amalgamated is "not your father's community bank," Mestrich said. A certified B Corporation, the company has $4.94 billion in total assets and primarily acts as a commercial bank for national and local labor unions, political organizations and a mix of other clients. Amalgamated also operates a political action committee that "supports only those politicians who align with our values," which include a worker's right to unionize, equality for the LGBTQ community and a woman's right to choose, according to its website.

Those principles have created a unique bank structure that can operate only in a "finite" amount of markets, Mestrich said.

Amalgamated has 14 branches across its home market of New York; Washington, D.C.; and San Francisco.

While Amalgamated could enter any of the new markets organically, Mestrich signaled that starting out in San Francisco with an existing presence with New Resource was an added benefit and something that could be beneficial for future expansions.

"Not a lot of M&A has been rewarded well by the marketplace, so we want to make sure we have a very defensible deal," Mestrich said. "We just haven't found that deal yet. It's got to be the right one."