Amalgamated Bank in Chicago threatens to sue namesake bank in New York

Amalgamated Investments Co., parent of Amalgamated Bank of Chicago, may pursue compensatory damages from Amalgamated Financial Corp. in New York for allegedly breaching terms of their merger agreement.

Amalgamated Financial in February called off its $98.1 million acquisition of Amalgamated Investments, citing an inability to secure regulatory approval. At the time, however, the seller said its executives believed the deal could proceed.

In a regulatory filing this week, the $7 billion-asset Amalgamated Financial disclosed that its namesake peer in the Windy City had threatened the lawsuit. The New York company shot back by denying any breach of the deal terms and said it would "vigorously" defend any legal claims.

While their names and missions are similar, the two companies are not affiliated. Both companies emphasize environmental, social and governance missions, serving nonprofit organizations and unions.

When the deal was announced last September, the two companies said it would create a bank with nearly $8 billion of assets, $6.8 billion of deposits, $3.7 billion of loans and $19 billion of trust assets under management.