BOSTON, MA--(Marketwired - June 07, 2016) - Radius Bank (www.radiusbank.com), a full-service bank headquartered in Boston, Massachusetts and a wholly-owned subsidiary of Radius Bancorp, Inc., today announced it received regulatory approval and closed on a transaction whereby a group of private investors acquired approximately 95% of Radius Bancorp and invested an additional $18 million of new equity capital to be used towards the Bank's growth for a total investment of approximately $63 million. The investment group included Patriot Financial Partners, GCP Capital Partners, Endicott Management Company, BayBoston Capital, other private investors and members of the Bank's management and board of directors.
First announced in October 2015, the transaction delivers capital for expansionary purposes while allowing the community bank to remain independent as it continues to execute on its strategic plans across its Commercial, Institutional, Virtual and Retail business lines. With the additional capital, the Bank remains committed to serving its key client markets, including consumers, small and middle market businesses, union organizations, municipalities and non-profits, at a high level. By investing in the company, the new owners bring deep industry knowledge and expertise to assist the Bank as it expands.
"We are very pleased to announce the closing of the Bank's recapitalization, which represents an outstanding result for our clients, employees and ownership group," commented Michael A. Butler, President and Chief Executive Officer of Radius Bank. "The growth capital allows us to better serve our clients, as well as accelerate our significant investment in both technology and people as we focus on initiatives like our upcoming personal financial management (PFM) service launch, new strategic partnerships with fintech leaders, and the recent expansion of our SBA lending platform to a national level. We appreciate the support of our investors and are excited to begin a new era at Radius Bank."
The Bank's current ownership group, the New England Carpenters Pension and Annuity Funds and the Northeast Carpenters Pension Funds, will continue to retain an approximately 5% ownership stake in Radius Bancorp.
Sandler O'Neill acted as financial advisor to the Bank and Keefe, Bruyette & Woods, A Stifel Company served as placement agent. Hogan Lovells acted as legal advisor to Radius Bancorp. Wachtell, Lipton, Rosen & Katz served as legal counsel to Patriot Financial Partners. Covington & Burling LLP served as legal counsel to GCP Capital Partners. Gallagher Fiduciary Advisors served as the independent fiduciary for the several funds in the current ownership group. RP Financial acted as financial advisor to the current owners. Bowditch & Dewey and Schulte Roth & Zabel acted as legal counsel to the selling pension funds.
About Radius Bank
With assets of approximately $800 million as of March 31, 2016, Radius Bank is a forward-thinking community bank offering a full complement of convenient, leading-edge personal and business products and services. The Bank serves consumers, small and middle market businesses, unions, government entities and non-profit organizations as its core clients. The Bank offers anytime/anywhere banking via mobile device, 24-hour ATM service, provides additional services such as treasury management capabilities, and partners with innovative organizations including mobile payments leader LevelUp, student loan debt reduction company SmarterBucks, online investment firm Aspiration, and online marketplace lender Prosper. Customers can readily access traditional, personalized branch banking at the Bank's Boston, MA financial center. Radius Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, visit the Bank's website at www.radiusbank.com.