NMB Financial Corporation a bank holding company and parent of New Millennium Bank, announced that a Letter of Intent has been sent to the Board of Directors of Noah Bank, Elkins Park, Pennsylvania related to a cash acquisition of Noah. The Letter of Intent provides for the cash acquisition of all outstanding shares of Noah at 100% of Noah’s tangible common equity as of March 31, 2022, less any transaction expenses over $2 million. Based upon publicly available information on Noah as of December 31, 2021, and assuming the transaction expenses are at or below $2 million, and there are no issues identified in normal due diligence, the value that would be delivered to Noah shareholders, using December 31, 2021 financial information, would be approximately $6.95 per share, based upon Noah having 4.235 million shares outstanding.
“I am delighted at the prospect of receiving this historic investment into NMB by the Department of Treasury, and it is a transformational, and a significant game changer for NMB.”
US Department of Treasury Emergency Capital Investment Program Investment into NMB
NMB is on its way to receive $75.1 million investment through the US Department of Treasury’s Emergency Capital Investment Program (“ECIP”). NMB is one of 186 community development financial institutions (“CDFI”) and minority depository institutions (“MDI”) that are eligible to receive $8.7 billion in capital through the ECIP. It is anticipated that the Department of Treasury will be investing $75.1 million in preferred stock of NMB Financial Corporation, with the investment expected to close at the end of May 2022.
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The investment by the US Department of Treasury is part of the Federal Government’s response to the COVID-19 pandemic. The ECIP was designed to provide direct funding to CDFIs and MDIs, as these types of financial institutions focus their efforts on increasing access to capital in traditionally underserved markets such as minority communities and other targeted populations.
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Hong Sik Hur, Chief Executive Officer of NMB, stated, “I am delighted at the prospect of receiving this historic investment into NMB by the Department of Treasury, and it is a transformational, and a significant game changer for NMB.” NMB plans to put the capital to work by increasing its lending to minority owned small businesses and low- to moderate-income customers as well as the targeted populations and communities that NMB serves. With this increase in capital, NMB will be able to grow its assets well in excess of $1 billion and provide additional products and services to customers within its footprint.
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