Manhattan Bancorp said Wednesday it received $13.7 million of additional capital from Carpenter Fund Manager GP LLC. This is the second and final installment of a stock purchase agreement that makes the Irvine-based general partner of Carpenter Community BancFunds a strategic partner with the El Segundo business bank.
This is a significant announcement because Manhattan is a young bank and this partnership solidifies its position. It's also especially challenging to get funding amid the economic crisis.
The holding company of Bank of Manhattan said the initial agreement of May 14 allowed the fund to purchase 1.5 million shares of Manhattan's authorized, but unissued shares of stock at $10 per share, for an aggregate purchase price of $15 million. Wednesday's announcement concludes the purchase agreement.
"We view Bank of Manhattan as a very well positioned new bank in California and look forward to supporting the company in its growth and expansion plans," said Carpenter Chief Executive Edward J. Carpenter.
In conjunction with the deal, the bank's board appointed John D. Flemming, a Carpenter managing member, to serve on the boards of both the bank and the holding company.
Bank Chief Executive Jeffrey M. Watson said Manhattan would use the money to increase the lending limit of the bank, expand, hire and position itself for acquisition opportunities.
Bank of Manhattan, which as of Sept. 30 had assets of $72 million, net loans outstanding of $48 million, and deposits of $47 million, targets small- and medium-sized businesses, as well as individuals. The holding company has a $20.5 million market cap, and earlier this month received $1.7 million in U.S. Treasury TARP funds.
Manhattan's typically lightly traded shares were unchanged at $7.85 on the OTC Bulletin Board Wednesday.
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