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OKLAHOMA CITY - Amalgamated Bank, a subsidiary of Amalgamated Financial Corp. (NASDAQ:AMAL), has completed the inaugural adjustable-rate financing under the Oklahoma County Commercial Property Assessed Clean Energy (C-PACE) Program for the Alley North Office development, it was announced today. The project, a new multi-story mass timber office building, marks a significant advancement in sustainable construction for Oklahoma City. According to InvestingPro data, Amalgamated Financial demonstrates strong financial fundamentals with a P/E ratio of 8.25 and impressive revenue growth of 10.81% over the last twelve months. The company’s stock currently appears undervalued based on InvestingPro’s Fair Value analysis.
Located in the historic Automobile Alley area, the Alley North Office will serve as the new headquarters for C.H. Guernsey & Company, an engineering and consulting firm. The financing from Amalgamated Bank will be specifically allocated to the high-efficiency glazing system of the building, contributing to its overall energy efficiency by optimizing natural light and minimizing energy demand for heating and cooling.
The C-PACE program is designed to provide long-term, competitive financing to commercial property owners for investments in energy performance, resiliency, and water conservation. This particular deal is notable for being the first in Oklahoma County to utilize an adjustable-rate structure, which allows the interest rate to reset at predetermined intervals, offering flexibility to the borrowers.
Sam Brown, Chief Banking Officer at Amalgamated Bank, highlighted the collaboration with Allectrify and the bank’s commitment to supporting energy reduction methods in new constructions through innovative financial products. Allectrify’s CEO, Colin Bishopp, expressed pride in the successful closure of the project on their FASTPACE platform, which facilitates efficient execution for C-PACE financing.
The Alley North Office development is expected to be a cornerstone in the Alley North redevelopment district, which is strategically positioned along a planned regional transit line. The project emphasizes sustainability and human-centered design, aiming to enhance the health and well-being of its occupants.
Amalgamated Bank, founded in 1923, operates as a full-service commercial bank and chartered trust company with a network of branches across major U.S. cities. It is recognized for its mission-driven approach, focusing on sustainable companies, clean energy, and socially responsible initiatives.
Allectrify, a company dedicated to simplifying C-PACE financing for lenders and borrowers, offers its FASTPACE platform to a network of lenders at no cost, reducing transaction costs for borrowers.
This development, based on a press release statement, represents a significant step in the expansion of environmentally conscious construction and financing in Oklahoma County. Amalgamated Financial’s strong financial health is evidenced by its 16% return on equity and 40% dividend growth over the last twelve months. InvestingPro subscribers can access additional insights, including 6 more ProTips and extensive financial metrics that help evaluate the company’s growth potential and market position.
In other recent news, Amalgamated Financial Corp. reported impressive fourth-quarter 2024 earnings, surpassing analyst expectations. The bank achieved an earnings per share (EPS) of $0.90, exceeding the anticipated $0.78, and recorded a revenue of $77.89 million, which was above the forecasted $76.92 million. In addition to these financial results, Amalgamated Financial authorized a new $40 million share repurchase program, replacing the previous plan that had $18.7 million remaining. This move was positively received by analysts at Keefe, Bruyette & Woods, who reiterated an Outperform rating for the company, highlighting the flexibility this buyback provides.
However, not all analyst feedback was favorable. Piper Sandler downgraded Amalgamated Bank’s stock from Overweight to Neutral, citing uncertainties surrounding the Trump Administration’s policy changes and ongoing litigation, which could impact the bank’s operations. In corporate governance developments, the company introduced a Bonus Deferral Plan for executives and amended the CEO Priscilla Sims Brown’s employment agreement, extending her term and outlining her compensation structure.
These recent developments reflect Amalgamated Financial’s strategic initiatives and responses to external challenges, which continue to shape its market position. Investors will be closely monitoring how these factors influence the bank’s performance and strategic direction in the coming months.
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