Amalgamated, New Resource banks complete merger

BOULDER — New York-based Amalgamated Bank today announced the completion of its merger with New Resource Bancorp, the parent company of San Francisco-based New Resource Bank (OTC: NRBC), which has a loan-production office at 1877 Broadway in Boulder.

The planned acquisition of New Resource Bancorp, a stock and cash deal worth approximately $58.5 million, was originally announced in December. According to an Amalgamated media release, the merger solidifies its position as the largest values-based, socially responsible bank in the United States.

According to the terms of the deal, New Resource shareholders will receive 0.0315 shares of Amalgamated common stock for each share of New Resource, at a purchase price of $9.67 per share.

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Based on each bank’s financial statements as of March 31, the combined bank will have assets of approximately $4.5 billion, and the combined assets under custody and management will be $41 billion.

Drew LaBenne, Amalgamated’s chief financial officer, told BizWest today that the chief executives of the two institutions — Keith Mestrich at Amalgamated and New Resource’s Vince Siciliano — had been colleagues for a number of years in the Global Alliance for Banking Values, and began discussing the possibility of a merger.

“New Resource Bank is one of the leading financial institutions working for sustainable energy, sustainable and organic foods. They’ve promoted growth in those industries,” LaBenne said. “At Amalgamated, we’ve always looked to get more business opportunities on the West Coast, so this gave us a foothold in the top progressive cities in the nation.

“We’re very excited to get a foothold into the Denver-Boulder area as part of this acquisition. There’s great progressive structure in terms of populations and industries that are growing in this area, and this allows us to enhance the banks’ mission in that area.”

Siciliano’s job as New Resource CEO ended Friday, LaBenne said, but he still will have an advisory role to Mestrich. Mark Finser, New Resource’s former chairman, joined the Amalgamated board while the remaining members of the New Resource board will serve on its strategic advisory board.

“This is an exciting step toward building a platform for a nationwide, socially responsible bank that can serve the interests of individuals and organizations working to make a positive difference in our society,” said Mestrich in a media release. “With our expanded geographic presence, strong financial foundation, and commitment to social good, combined with New Resource’s knowledge and commitment to sustainable operations, Amalgamated is poised for continued growth and success. We look forward to being able to serve additional communities and customers who want to spend, save and invest their money with a bank that understands and shares their values.”

Amalgamated and New Resource are both B-certified corporations, a certification awarded by the nonprofit B Lab to companies that can prove they’re committed to “social and environmental performance public transparency and legal accountability,” according to B Lab’s website.

New Resource Bank set up its office in Boulder in 2016 to deal exclusively with the application and financing of loans. Three-quarters of New Resource’s loans have gone to support environmentally sustainable businesses.