Community Banks
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WRH+Co Interactive Community Bank Models
Minimize the Cost of Capital
WR Hambrecht + Co has raised capital for financial institutions of all sizes and is now emerging as a strong advocate for regional and community banks whose health is critical to the long term viability of the economy. WR Hambrecht + Co has tailored a capital raising solution for the community banking sector that has the following key components:
- Minimize Cost of Capital. The core of our solution is the Dutch auction, which minimizes the cost of capital for issuers while reaching a broad set of institutions and retail investors. While the auction is designed for all types of equity underwritings, it is an especially effective tool for secondary offerings and provides an attractive alternative to rights offerings for community banks.
- Industry Expertise. We have developed a comprehensive community bank research product, which includes a community bank index for banks with between $500 million and $2 billion in total assets. In addition, we have established working relationships with a variety of industry experts, including former bank examiners and regulators, to bolster and enhance our efforts in this sector.
- Liquidity. We work closely with the NYSE’s market for smaller cap issues. A listing on this market can provide more publicity, greater liquidity and tighter trading spreads than the Bulletin Board or Pink Sheets.
Why WR Hambrecht + Co?
The current economic situation has created a capital raising need for community banks that calls for an innovative solution. While the Treasury’s TARP is poised to provide inexpensive capital at favorable terms, particularly in the first five years, there is a limit to the amount raised through the program and its associated dividend payments increase after five years. Raising additional capital in the public equity markets will complement TARP and provide a solid long term solution.
We bring flexibility to the capital raising process by offering diverse solutions. For first time issuers, our OpenIPO platform represents the single most cost effective way of going public. The Silent Auction provides an alternative to the traditional follow-on process and significantly lowers the cost of raising capital by mitigating disruption to market price.
We believe our auction process brings an unmatched breadth of investor distribution and provides the lowest cost of capital. This provides the perfect complement to banks’ existing shareholder bases. Utilizing our auction process, we have successfully raised capital for several financial services firms such as Bank of Internet, Morningstar and Interactive Brokers Group.
Selected Financial Services Transactions
Contact Information
Helen Miazga
hmiazga@wrhambrecht.com
(415) 551-3237
