Big Results for Small Organizations
The Banc Funds have made over 3,000 investments in small financial services companies in 46 states across the U.S. Among those investments, 800 portfolio companies have been acquired by strategic buyers and dozens of our companies have become public companies. We have provided equity capital to fuel rapidly growing companies; aided companies doing turnarounds in the wake of a recession; capitalized companies entering new markets, and recapitalized companies that encountered loan problems. We have facilitated mergers-of-equals that allowed the combined entity to get onto a higher growth path. The common theme in all this investment activity is understanding how a company approaches its market, and then helping to improve that approach. We work with management teams to understand their vision, refine it, strengthen it, and provide the resources to facilitate growth to a larger platform.
Shown below is just a small sample of investments that represent the types of transactions that The Banc Funds have made over the last 31 years. The descriptions of the financings or counsel that we offered these portfolio companies are representative of some of the services we make available to those organizations in which we invest. These descriptions are not intended in any way to suggest financial rewards, success in our investments, or that we will be able to offer all these services to every company.
Brenton Bank, Inc., Des Moines, IA.
We purchased 50% of the shares held by the estate of the chairman of a privately held bank. This allowed the estate to liquify a portion of its assets and diversify its portfolio while allowing the bank to build value by expanding into several high-growth markets.
Banks of Iowa, Inc., Des Moines, IA.
In conjunction with its limited partners, Midwest Bank Fund I provided $11 million of an $18 million financing for a private placement that allowed a $2 billion bank to bolster its capital, make several bank acquisitions, and enter two high growth businesses.
Security Bancorp, Inc., Southgate, MI.
Working with a multi-bank holding company, we provided capital a cash alternative to holders of a series of convertible preferreds the company issued to acquire other banks. This allowed the bank to use its capital for acquisitions, growth, and expansion.
St. Paul Bancorp, Inc. Chicago, IL.
We oversubscribed for shares in a mutual savings & loan association that sought to convert from mutually owned to a stock company. This assured the company's management team that it would be able to complete its conversion successfully.
Seacoast Banking Corp., Stuart, FL.
We provided growth capital to a rapidly growing company in Florida, which was bumping up against minimum regulatory capital requirements. In high growth markets, even profitable banks may need capital injections.
Brooklyn Bancorp, Brooklyn, NY.
Banc Funds II and III financed an MBO of a savings bank that was held in receivership by the Federal Deposit Insurance Corporation. We have helped portfolio companies acquire companies from the FDIC and the RTC.
Lakeside Bank, Chicago, IL.
We structured a three-tranche financing over a three-year period to a $150 million bank. The bank met Federal Reserve-mandated capital guidelines, avoided over-capitalization, and used an innovative set of paired options for capital in years 2 and 3.
Empire Bancorp, Travers City, MI.
We participated in a private placement providing capital to a rapidly growing Michigan bank that needed funds to expand its network of offices serving high net worth individuals and trust customers.
SummCorp, FT. Wayne, IN.
Over a five-year period, we provided capital, standby capital, and counseled management on business expansion, expansionr opportunities, deal structuring, and finally, merger considerations when the company sold