In all, the IPO raised about $104 mln in total gross proceeds, still a fairly significant amount for a regional bank. There were also some tier one firms involved with the underwriting of the IPO, including JP Morgan and Barclays. As we discuss below, AMAL's financial performance has improved over the past year.
With that in mind, perhaps AMALs' IPO will fare better once it opens for trading on the Nasdaq.
AMAL is a commercial bank and a chartered trust company headquartered in New York, New York. The company was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America. Its customers include advocacy-based non-profits, social welfare organizations, national and local labor unions, political organizations, foundations, and sustainability-focused, socially responsible businesses, and other for-profit companies.
Back in 2014, the company began a strategic review of its operations and began to implement a turnaround plan. This strategic review resulted in the closing of our branches in Nevada, New Jersey, and California, thereby reducing the size of its branch network from 24 to 13 branches (now 14 branches following the New Resource Bank Acquisition) with limited account losses, increasing deposits per branch from $105.1 mln to $248.7 mln. Also, from 2014 to 2017, it unwound $687 mln of high-cost borrowings with an average rate of 3.6% at a loss of $24.3 mln due to prepayment penalties.
As of March 31, 2018, AMAL's total assets were $4.2 bln, its total loans, net of deferred fees and allowance were $2.9 bln, its total deposits were $3.3 bln, and its stockholders’ equity was $346.6 mln. Also, as of March 31, 2018, its trust business held $29.4 bln in assets under custody and $11.6 bln in assets under management.
AMAL is a full-service commercial bank offering a broad range of deposit products, trust, and investment management services, and lending services. It generates low-cost deposits from its commercial clients and consumer customers.
Its primary geographic markets include the New York City metropolitan area, the Washington, D.C. metropolitan area and, following the New Resource Bank Acquisition, the San Francisco metropolitan area. AMAL currently has a managed network of 12 branches in New York City, one branch in Washington, D.C., one branch in San Francisco (acquired in the New Resource Bank Acquisition), a domestic representative office in Pasadena, California, and a loan production office in Boulder, Colorado (acquired in the New Resource Bank Acquisition). New Resource Bank’s core lending markets include clean energy, organic and natural products, green real estate (properties with energy efficiency and sustainability features), sustainable businesses and nonprofits.
For the three months ended March 31, 2018, net interest income increased by 15.9% to $32.8 mln. The growth was primarily attributable to an increase in average loans of $293 mln and a decrease in funding costs due to the prepayment of high-cost, long-term borrowings in 2Q17 and a reduction of $265 mln in the average balance of borrowings.
Its net interest spread was 3.17% for the three months ended March 31, 2018, compared to 2.72% for the three months ended March 31, 2017, an increase of 45 basis points.
Total assets increased by 3.4% year/year to $4.15 bln with a return on average assets of 0.77%, up from 0.29% in the year ago period. Nonperforming loans to total loans was 0.71%, down from 1.79% in the year ago period.