Amalgamated Financial Corp. (NASDAQ:AMAL), a state commercial bank headquartered in New York, has entered into a new collective bargaining agreement with the Office & Professional Employees International Union (OPEIU), Local 153, AFL-CIO, according to its latest 8-K filing with the Securities and Exchange Commission. The agreement, which covers office and clerical employees, was signed on November 29, 2024, and extends the union contract until June 30, 2026.
The new contract includes an annual wage increase of 3.5% for the duration of the agreement. The company's ability to provide these benefits is supported by its solid financial performance, with revenue growth of 12.8% and an attractive P/E ratio of 10.5.
Additionally, it introduces modifications that include improved terms for the employees, such as the establishment of a healthcare reimbursement account (HRA).
InvestingPro subscribers can access 8 more key insights about AMAL's financial health and growth prospects through the comprehensive Pro Research Report.
This agreement continues to govern various aspects of the employment relationship, such as compensation, vacation, severance, and working conditions. It also maintains a "no-strike" clause, ensuring that there will be no strikes from the union and no lockouts from the company throughout the term of the contract.
The details of the collective bargaining agreement, including the terms and conditions, are outlined in Exhibit 99.1 of the 8-K filing. This information and the exhibit are not considered "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not incorporated by reference into any SEC filing, except as explicitly referenced.
The negotiation of this agreement demonstrates Amalgamated Financial Corp.'s commitment to maintaining a collaborative relationship with its employees and the union representing them. The extension of the contract and the agreed-upon terms are expected to provide stability and predictability for both the company and its employees over the next couple of years, further supported by its 20% dividend growth and strong market performance.
This news is based on a press release statement and the information is sourced directly from the SEC filing by Amalgamated Financial Corp.
In other recent news, Amalgamated Bank (NASDAQ:AMAL) has seen a series of positive developments. The bank's third-quarter earnings report revealed a net income of $27.9 million, with a core net income of $28 million.
Deposits surged to $7.6 billion, driven by growth in social, philanthropic, and sustainable funds, and loans increased by 2.7%, focusing on commercial, industrial, and sustainable lending.
These strong financial results led Piper Sandler to raise its price target for Amalgamated Bank to $42 from $39, maintaining an Overweight rating on the stock. This adjustment comes after Amalgamated Bank's second annual Investor Day, where analysts and investors gained insights into the bank's operations. Piper Sandler's price target increase signifies their confidence in the bank's future performance.
Amalgamated Bank also reported an improved Tier 1 leverage ratio of 8.63% and revised its full-year guidance upwards, expressing optimism about growth prospects, particularly in sustainable banking. However, the bank anticipates elevated expenses in the fourth quarter, including some one-time costs, and share repurchases are likely to be paused until a Tier 1 leverage ratio of 9% is achieved. Despite these challenges, Amalgamated Bank remains committed to its growth and sustainability goals.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.