Oct 3 - Monarch Community Bancorp Inc. (OTCQB:MCBF), the parent company of Monarch Community Bank in Coldwater, Mich., has successfully raised $16.5 million in investor funds, which will be used to purchase approximately 8.25 million shares of Monarch Community Bancorp's newly issued common stock at $2 per share. The funds will remain in escrow pending the completion of all documentation associated with the company's retirement of U.S. Department of Treasury TARP obligations and the closing of the transaction, which is expected to conclude in the next 30 to 45 days.
"We are very gratified at the response of the investment community," stated Richard J. DeVries, president and CEO of Monarch Community Bancorp and Monarch Community Bank, "and are most appreciative of the leadership provided by our investment bankers at the firms of Donnelly Penman & Partners and Boenning & Scattergood Inc.
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 $4.4 million, and to support the ongoing growth of the bank.
The bank also announced a corporate restructuring that will streamline the organization, enhance loan production capacity and result in approximately $1.3 million in annualized expense reductions. Approximately $1 million of these reductions will be generated through reduced personnel expense.
"These are difficult decisions to make and to implement," stated DeVries, "but they will allow us to operate with an expense structure that will be more in line with our peer banks across the state of Michigan."
Monarch Community Bank is headquartered in Coldwater, Mich., and 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, Ind.