2013 - Monarch - CR

Monarch Community Bancorp, Inc. Completes $16.5 Million Recapitalization; Redeems TARP from U.S. Treasury at Discount

THE TRANSACTION

Monarch Community Bancorp, Inc. (OTCQB:MCBF) (“Monarch”) successfully raised $16.5 million through institutional and accredited retail investors which will be used to purchase approximately 8,250,000 shares of Monarch’s newly issued common stock at $2.00 per share. The offering closing occurred contemporaneously with the closing of a series of transactions between Monarch, certain third party investors, and the U.S. Department of Treasury. Funds will be used to recapitalize Monarch, 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. Additionally, the offering was structured to preserve Monarch’s ability to recapture its deferred tax asset, which is in excess of $8.0 million at the time of closing.

Our Client

MONARCH COMMUNITY BANCORP, INC.

Monarch Community Bancorp, Inc., the parent company of Monarch Community Bank, is headquartered in Coldwater, Michigan and operates five full service retail offices in Branch, Calhoun, and Hillsdale counties and nine loan production offices Kalamazoo, Calhoun, Berrien, Ingham, Lenawee, Kent, Livingston, and Jackson counties in Michigan, and one in Steuben County, Indiana. As of September 30, 2013, Monarch had total assets of approximately $167.9 million, net loans of $115.7 million, total deposits of $156.3 million, tangible common equity to assets of 0.84%, and a market capitalization of approximately $1.2 million.

CONTACT

Managing Director
Financial Institutions
Managing Director
Financial Institutions
Assistant Vice President
Financial Institutions