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Amalgamated Bank buying New Resource Bancorp for $58.5M

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Amalgamated Bank buying New Resource Bancorp for $58.5M

New York-based Amalgamated Bank is buying San Francisco-based New Resource Bancorp and unit New Resource Bank in an all-stock deal valued at around $58.5 million.

Under the deal terms, shareholders of New Resource will receive 0.0315 share of Amalgamated Bank's common stock for each New Resource common share held, or a purchase price of $9.67 per share.

SNL calculates the deal value to be 138.6% of book and tangible book and 29.1x earnings, on an aggregate basis. It is also 16.57% of assets and 19.03% of deposits. The premium to tangible book amounts to 5.83% of core deposits.

For comparison, SNL valuations for bank and thrift targets in the West region between Dec. 15, 2016, and Dec. 15, 2017, averaged 184.23% of book, 197.49% of tangible book and had a median of 24.65x last-12-months earnings, on an aggregate basis.

SNL data shows that Amalgamated Bank will enter San Francisco County, Calif., with one branch to be ranked No. 17 with a 0.15% share of about $212.30 billion in total market deposits.

As of Sept. 30, Amalgamated Bank had $4.07 billion in assets, while New Resource Bank had $353.1 million in assets.

The deal, which is subject to approvals from regulators and New Resource shareholders, is expected to close in the second quarter of 2018. Upon completion, Amalgamated Bank President and CEO Keith Mestrich will retain his roles in the combined company.

The combined company will have footprints in New York; Washington, D.C.; San Francisco; and Boulder, Colo. The company is also considering future expansions throughout the U.S. Amalgamated Bank focuses on "progressive people and organizations," and New Resource Bank aims to impact environmental protection, health and wellness, education and community empowerment, and sustainable commerce, the release stated.

SNL data shows that Amalgamated Bank will enter in San Francisco County, Calif., with one branch to be ranked No. 17 with a 0.15% share of about $212.30 billion in total market deposits.

FinPro Capital Advisors served as financial adviser to Amalgamated Bank, while Nelson Mullins Riley & Scarborough LLP served as legal counsel. Vining Sparks IBG LP acted as financial adviser to New Resource, while Gary Steven Findley & Associates acted as legal counsel.

To use S&P Global Market Intelligence's branch analytics tools to compare market overlap, click here. To create custom maps, click here.

SNL is an offering of S&P Global Market Intelligence.

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