Amalgamated Bank
| Company type | Public benefit corporation |
|---|---|
| Industry | Banking, Financial services |
| Founded | April 14, 1923 in New York City, United States |
| Founder | Amalgamated Clothing Workers of America |
| Headquarters | New York City , United States |
Area served | New York, California, Massachusetts, Washington, D.C., Colorado |
| Products | Personal banking, small business and commercial banking, institutional investment solutions |
| Owner | Workers United (majority owner) |
| Website | www |
Amalgamated Bank stands as a prominent American financial institution and holds the distinction of being the largest bank owned by labor unions in the United States. The majority ownership is held by Workers United, an affiliate of the SEIU. Established on April 14, 1923, by the Amalgamated Clothing Workers of America, the bank reported assets totaling $7.8 billion as of mid-2023.
Amalgamated Bank’s Institutional Asset Management and Custody Division is recognized as a leading provider of investment and fiduciary services tailored to Taft–Hartley plans, managing advisory and custodial assets exceeding $45 billion.
The institution entered the public market in August 2018 through an initial public offering on the NASDAQ, trading under the symbol "AMAL".
Its service portfolio includes personal banking, small business and commercial banking, as well as institutional investment solutions, with operations spanning New York, California, Massachusetts, Washington, D.C., and Colorado.
History
The Amalgamated Bank of New York was chartered by the Amalgamated Clothing Workers of America on March 16, 1923, officially commencing operations on April 14, 1923. Its original location was on East 14th Street in Manhattan, close to Union Square. Within weeks of opening, the bank attracted 2,400 depositors who collectively contributed $450,000, leading to an expansion into two floors within the same building. Ownership and management were maintained by the Amalgamated Clothing Workers organization. Key figures in its leadership included chairman Hyman Blumberg, president R. L. Redheffer, vice president Jacob S. Potofsky, and directors such as Gold, Sidney Hillman, Max Lowenthal, and Fiorello H. La Guardia.
In 1927, the bank played a pivotal role in financing the Amalgamated Housing Cooperative, recognized as the first union-backed housing project in the United States, situated in The Bronx. During the late 1920s, it also encouraged travel to Soviet Russia through its dedicated "Travel Department." A significant contribution came in 1957 when Amalgamated Bank funded the Park Reservoir Housing Cooperative in the Bronx under New York State’s Mitchell-Lama Housing Program, marking an important development in affordable housing initiatives. Throughout its history, the bank has consistently supported labor movements financially—offering bail assistance for striking workers and extending loans to labor organizations such as the striking National Football League Players Association in 1982.
In May 2018, Amalgamated Bank expanded its footprint by merging with San Francisco-based New Resource Bank. Subsequently, it went public in August 2018 with an initial public offering on the Nasdaq Global Market under ticker "AMAL."
In March 2021, Amalgamated Bank became the first publicly traded financial services firm to restructure as a public benefit corporation, underscoring its dedication to integrating social responsibility with financial objectives.
Products and services
Based in New York City, Amalgamated Bank maintains five branch locations—three within New York City, one located in Washington D.C., and another in San Francisco. Customers enjoy round-the-clock access through comprehensive online and mobile banking platforms. The bank delivers a broad range of financial solutions for individuals, small businesses, and commercial enterprises including deposit accounts, lending products, investment options, cash management services, and residential and commercial mortgage financing. Checking account holders benefit from access to more than 40,000 surcharge-free ATMs nationwide via the Allpoint Network. The bank specializes in serving political organizations, advocacy groups, nonprofit entities, labor unions, and Middle Market companies. Prominent clients encompass the American Federation of State, County and Municipal Employees, International Association of Firefighters, Service Employees International Union, United Federation of Teachers, Democratic Governors Association, Economic Policy Institute, League of Conservation Voters, Organizing for Action, and Public Citizen. Additionally, Workers United continues as a valued client.
Corporate governance
Amalgamated Bank has demonstrated a longstanding commitment to shareholder activism:
- 1990s: Promoted the adoption of predominantly independent boards prior to regulatory mandates
- 1994: Tackled sweatshop violations by advocating for the implementation of Codes of Conduct
- 1997: Supported full transparency regarding corporate political donations
- 2000: Opposed excessive executive severance agreements
- 2001: Initiated litigation against Enron over accounting fraud, successfully recovering billions for shareholders
- 2004: Led efforts to introduce shareholder resolutions mandating executive compensation clawback policies
- 2011: Pressured oil companies to tie environmental and safety outcomes to executive incentive plans
- 2013: Achieved the largest shareholder derivative settlement in Delaware following the News Corp hacking incident
- 2014: Sponsored a resolution aimed at restricting golden parachute arrangements at Valero Energy Corp.
- 2015: Announced significant settlements including:
- $137.5 million derivative lawsuit resolution with Freeport-McMoRan Inc.
- $146.25 million settlement with Duke Energy Corporation
- Agreements from five leading energy corporations to curtail executive golden parachutes during mergers or changes in control
Purchasing policy
Since its establishment in 1923, Amalgamated Bank has championed American labor and the Labor Movement by prioritizing procurement from union-made goods. The institution also engages union-affiliated contractors for construction, utilizes union printing services, and favors unionized airlines and hotels.
Minimum wage
In 2015, Amalgamated Bank became the first bank in the United States to set a minimum wage of $15 per hour for all employees. This initiative followed findings from the National Employment Law Project that revealed wage disparities within banking: full-time tellers earn approximately $25,800 annually, while CEOs receive compensation in the tens of millions. In New York State, 39% of bank tellers depend on public assistance due to median wages around $13.31 per hour. The bank maintains a CEO-to-worker pay ratio of 17:1.
Commitment to affordable housing
Amalgamated Bank has a long history of funding affordable housing projects, including construction and rehabilitation efforts. Its Affordable Housing Construction Loan program aims to invest over $100 million toward creating thousands of affordable housing units throughout New York. In April 2016, the bank introduced an innovative homebuyer product that offers protection for down payments against fluctuations in the housing market.
Accessibility in banking
To enhance financial inclusion, Amalgamated Bank accepts twelve different forms of identification for account openings, among them IDNYC, New York City's municipal identification card.
Nearly one million adult residents of New York remain unbanked and often rely on alternative financial services such as check cashing for their transactions. IDNYC cards, which are distributed free of charge to city residents, are accepted at Amalgamated Bank branches located in the Bronx, Brooklyn, Manhattan, and Queens. These cards satisfy the Customer Identification Program ("CIP") requirements under the Bank Secrecy Act, simplifying account verification procedures.