According to Manhattan Bancorp, the additional capital will enable it to accelerate its core business plan
Manhattan Bancorp, the holding company of Bank of Manhattan, has received $13.73 million of additional capital which represents the second and final installment of the stock purchase agreement with Carpenter Fund Manager, general partner of the Carpenter Community BancFunds, pursuant to which the fund agreed to purchase 1.5 million shares of Manhattan Bancorp’s authorised but unissued shares of stock at $10 per share for an aggregate purchase price of $15 million.
Additionally, the board of directors has appointed John Flemming, a managing member of Carpenter, to serve on the board of directors of Manhattan Bancorp as well as the board of directors of Bank of Manhattan pending necessary regulatory approvals.
According to Manhattan Bancorp, the additional capital will enable it to accelerate its core business plan in the following ways: increase the legal lending limit of the bank, and therefore its competitive positioning in the market; permit the bank to intensify its expansion plans at a time when talented bankers are becoming available in its market area; position the company for potential acquisition opportunities; and provide the company with capital for potential product line diversification activities in fee income products targeting business owners in its market area.
Jeffrey Watson, president and CEO of Manhattan Bancorp, said: John’s breadth of experience in the community banking marketplace will bring additional expertise to the solid board we currently have.
Edward Carpenter, managing partner of Carpenter, said: Manhattan Bancorp and its team are well known to us. 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.