New Share Buyback Initiative Boosts Amalgamated Financial Corp.
Amalgamated Financial Corp. Unveils $40 Million Share Repurchase Program
Amalgamated Financial Corp. has announced an exciting update regarding its share repurchase program. The company’s Board of Directors has sanctioned a new buyback of up to $40 million of Class A common stock. This decision replaces the earlier authorization that had around $18.7 million remaining as of last year.
Management's Insight on the Initiative
Priscilla Sims Brown, the President and Chief Executive Officer, expressed her optimism about the Bank's performance. She explained that the new year began with strong momentum as political deposit balances are rebuilding following the recent democratic processes. Moreover, the growing business production pipeline has signaled positive advancements.
Reasons Behind the Repurchase Program
Brown emphasized that the current share price does not accurately reflect this upward momentum. The new authorization provides a timely opportunity to strengthen shareholder value through strategic buybacks.
Details of the Repurchase Authorization
This share repurchase initiative comes without an expiration date. The company retains the flexibility to alter, extend, or discontinue the program at its discretion. It should be noted that the actual timing and number of shares purchased will depend on various factors. These include the stock performance and the Bank’s capital planning considerations.
About Amalgamated Financial Corp.
Amalgamated Financial Corp. is a Delaware public benefit corporation and operates as a bank holding entity. Its commercial banking and financial services are primarily delivered through the wholly-owned Amalgamated Bank. Located in New York, Amalgamated Bank serves as a full-service commercial bank and chartered trust company. The Bank has a robust network comprising five branches across major cities and additional operations in Boston.
History and Growth
Established in 1923 by the Amalgamated Clothing Workers of America, Amalgamated Bank has remained committed to providing comprehensive banking services to both retail and commercial customers. The Bank proudly participates in the Global Alliance for Banking on Values and is certified as a B Corporation.
Business Performance Metrics
As of the end of the previous year, Amalgamated Financial reported impressive figures. With total assets amounting to $8.3 billion, the Bank holds $4.6 billion in net loans and $7.2 billion in deposits. Furthermore, their trust services manage assets worth $35 billion, along with $14.6 billion in assets under management.
Continued Commitment to Growth
The introduction of the $40 million share repurchase initiative underscores Amalgamated Financial Corp.’s commitment to fostering growth while creating value for shareholders. With solid financials and a focus on future opportunities, the Bank continues to pave the way in the commercial banking landscape.
Frequently Asked Questions
What is the purpose of the $40 million share repurchase program?
The program aims to enhance shareholder value by allowing the company to buy back its own shares, reflecting confidence in its growth and financial stability.
How will the timing of the repurchase be determined?
The timing and number of shares repurchased will depend on several factors, including the Bank’s stock performance and broader market conditions.
Does the share repurchase program have a specific expiration date?
No, the repurchase program does not have an expiration date and can be modified or discontinued at the company's discretion.
What is Amalgamated Financial Corp.'s core business?
Amalgamated Financial Corp. operates as a bank holding company, primarily involved in commercial banking and financial services through Amalgamated Bank.
How does the company benefit from this repurchase program?
The repurchase program is expected to improve earnings per share and provide a supportive signal to investors regarding the company’s financial health and growth potential.
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