Press Release

JULY 21, 2010


Michael Iannaccone
President and Managing Partner
MDI Investments, Inc.
(630) 347-5939


--Bank with highest Texas ratio in Chicago MSA is saved--

CHICAGO – JULY 21, 2010--MDI Investments, Inc., corporate advisory firm for community financial institutions, announced that it was the primary financial adviser for the acquisition of Family Federal Savings of Illinois by GreenChoice Holding Company, Inc. in the first successfully completed supervisory conversion of an Illinois thrift in the past 20 years. 

Family Federal Savings of Illinois converted from a mutual savings and loan to a stock savings and loan while simultaneously being acquired by GreenChoice with an investment by Newport Capital Bancorp, LLC.  Prior to the acquisition, Family Federal was undercapitalized and had the highest Texas ratio in the Chicago MSA at 737.2%, due to sizeable non-performing loans. The Texas ratio is a common measure of a bank’s credit problems.

Family Federal, founded in 1910 and headquartered in Cicero, IL with a branch location in Lockport, IL., serves a mostly Hispanic customer base and has a CRA lending rating of “Outstanding.”  With this acquisition, GreenChoice has established the Midwest’s first holistically green community bank and plans to move the bank’s headquarters to the Green Exchange, a 272,000 square foot green sustainable business community consisting exclusively of environmentally conscious businesses.  The Green Exchange is scheduled to open in early 2011 at 2545 W. Diversey Ave. in Chicago.

“I was pleased to have advised both Family Federal Savings and GreenChoice on the successful union of these two organizations and provided assistance in raising capital for the transaction,” said Michael Iannaccone, President and Managing Partner of MDI Investments.  “Regulatory approval for the transaction is credited to GreenChoice’s experienced management team and sound business plan and the ability to raise substantial capital,” he said.

GreenChoice raised more than the required capital by the deadline of July 15, 2010 when the private placement stock offering closed. “Our acquisition and recapitalization of Family Federal was made possible with the assistance and deep community bank experience of Michael Iannaccone, who knew what structure to use and how to get the deal done,” said Harold L. Sherman, President and Chief Executive Officer of GreenChoice.

The participation of socially conscious investors with an interest in community banks serving minority neighborhoods was crucial to the success of capital raising efforts, and the offering was oversubscribed by individuals and institutions. One such institutional investor is Newport Capital Bancorp of Newport Beach, CA.  “We were exceptionally pleased with the common goals and the focus in socially conscience activities by the GreenChoice management team and our minority/community bank investment targets,“ said John Vasquez, CEO of Newport Capital Bancorp. Newport Capital is a minority-owned Delaware holding company formed for the purpose of opportunistically recapitalizing banks and acting as an acquisition platform to invest in other financial institutions and asset generation platforms.

MDI Investments would also like to recognize Justin Barr, Managing Principal of Loan Workout Advisers, LLC in Chicago, who played a critical behind-the-scenes role in finding the right partner for Family Federal Savings.

About MDI Investments, Inc.

MDI Investments, Inc., is a corporate advisory firm for community financial institutions. MDI Investments serves clients throughout the United States but has a concentration of clients in the central part of the country. MDI Investments assists financial institutions with asset disposition, capital preservation, capital raising and merger and acquisition advisory through its affiliation with Tangent Capital Partners, registered with the Securities and Exchange Commission (SEC) as a broker/dealer and a member of the National Association of Securities Dealers (NASD). For more information, go to