Standard Bancshares was a Chicago-area commercial bank with 38 branches, approximately $2.3 billion of assets and $2.0 billion of deposits.
INDUSTRY KNOWLEDGE & NETWORK
Standard was one of eight commercial bank investments pursued by Stone Point following the financial crisis. Stone Point worked with Standard management to develop a recapitalization plan that would work for regulators, customers and investors.
INTRODUCTION TO CLIENTS & PARTNERS
Stone Point introduced Standard management to like-minded, long-term investors that participated in the recapitalization.
EXECUTIVE RECRUITING & ALIGNMENT
Stone Point recruited two proven Chicago area bank executives to serve as directors responsible for assisting management in the development of strategy, financial planning and risk management. The existing executive management invested alongside the institutional shareholders in the recapitalization.
CAPITAL RAISING & STRUCTURING
Stone Point led a $140 million recapitalization for Standard Bank that repaid all holding company liabilities, provided growth capital to the bank subsidiary and positioned the business to receive higher regulatory ratings. The pre-money entry price implied a price to tangible book value of 0.75x.
OPERATIONAL ASSISTANCE & GOVERNANCE
Standard Bank’s Board was restructured to include independent investor directors and representatives of the private equity investors. All directors in the new company were investors in the business and financially aligned with its shareholders. Additionally, Stone Point partnered with management to develop a long-term capital plan for the business.
Standard was sold to First Midwest, an in-market strategic acquirer.
Stone Point recognized the value of our banking franchise, assisted in the recapitalization of our business, and then successfully advised us on the selection of a longer term merger partner.
Investments highlighted or discussed in this selection have been selected to illustrate SPC’s investment approach and/or market outlook and are not intended to be an indicator of past or future performance. Each investment discussed in this selection has been selected solely for this purpose and has not been selected on the basis of performance or any performance-related criteria. The investments discussed herein do not represent an entire portfolio and in the aggregate may only represent a small percentage of holdings. Nothing in this presentation shall constitute a recommendation or endorsement to buy or sell any security or other financial instrument referenced herein.