Investment Banking - Monarch Community Bancorp

Transactions | Banking

Client: Monarch Community Bancorp
Industry: Banking
Transaction Type: Common Stock Offering
Role: Co-Placement Agent

  • Monarch Community Bancorp (OTCQB: MCBF), the parent company of Monarch Community Bank, is a $167 million asset bank headquartered in Coldwater, Michigan that operates five full service retail offices in Branch, Calhoun and Hillsdale counties and nine loan production offices in Kalamazoo, Calhoun, Berrien, Ingham, Lenawee, Kent, Livingston and Jackson counties in Michigan and one in Steuben County, Indiana.
  • Monarch raised $16.5 million by issuing 8,250,000 shares of common stock at $2.00 per share in a private placement.
  • At September 30, 2013, the Company had tangible common equity to assets of 0.84% and a pre-deal market cap of approximately $1.2 million.
  • Funds will be used to recapitalize Monarch Community Bank, to retire approximately $8.2 million in U.S. Department of Treasury TARP obligations for approximately $4.5 million, and to support the ongoing growth of the Bank.
  • The offering was also structured to preserve a meaningful deferred tax asset in excess of $8.0 million.
  • Boenning acted as Co-Placement Agent in connection with the offering.