This April, Menomonee Falls-based Securant Bank & Trust accepted $5.1 million from the Capital Purchase Program (CPP), an extension of the federal TARP program.

Over the last year, many of the nation’s largest banks have taken much larger cash infusions through the TARP and CPP programs. In many cases, those banks used the taxpayer-backed loans to shore up their balance sheets, which have been battered by losses in the real estate and construction markets.

“For Securant, accepting TARP funds is a tactic to fuel lending and make our strategic plan happen,” said David Davis, president and CEO of the bank. “It meets the funding needs that have always been part of our larger plan, though the recession has led us to a different source. We didn’t have to change the way we do business. It was simply a decision about the cost of doing business. Using the funds puts us exactly where planned to be: strongly positioned to lend to businesses.”

Since accepting the CPP funds, the bank has increased lending by 15 percent. It has also expanded its assets under management to $252 million, an 18 percent increase since the start of the year.

“Many banks are downsizing to fit their capital position, as required by legislators, but Securant Bank & Trust’s capital position is strong,” said Mike Fleming, senior vice president of commercial lending with the bank. “That gives us the power to support local economic growth.”

Securant maintains that by accepting the federal infusion, it has been able to meet its growth goals during a down economy.

Over the last 18 months, the bank has changed its name, launched a new wealth management division and opened a new branch office in Elm Grove.

For more information, visit www.securantbank.com.

Fiserv Inc., has sold its loan fulfillment solutions (LFS) division to Pennsylvania-based ISGN Solutions Inc. ISGN specializes in mortgage lending technology and solutions, including fulfillment services, title and default management.

Terms of the acquisition were not disclosed. The deal is expected to close in late October, pending regulatory approval.

Fiserv’s employees in the LFS division will work for ISGN after the deal closes, a Fiserv spokesperson said. Most of the employees are in New Jersey, while some are in Brookfield and other locations around the country.

Fiserv’s LFS division provides outsourced home equity loan fulfillment services to financial institutions. Its services include broker price opinions, closing and settlement services, valuation services, flood and title certification, home retention and loan modification solutions, portfolio and vendor management solutions, and more.

“We remain committed to providing best-in-class lending solutions that are consistent with our strategic focus. We believe the LFS business, and the clients it serves, will benefit from the scale and expertise of ISGN,” said Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “We are pleased with the outcome for our clients, associates and shareholders.”

As part of the transaction, Fiserv will receive a minority ownership interest in CFCL Technologies Limited, the parent company of ISGN Corporation. The companies expect to cooperate in the delivery of value-added processing solutions to mutual clients.

AllThingsLifeSciences 2009: Madison, a venture capital forum aimed at connecting life sciences firms led by female entrepreneurs with angel, venture and corporate investors, will be held Wednesday and Thursday at the Fluno Center, 601 University Ave., Madison on the University of Wisconsin campus.

The Madison event is the first of three different AllThingsLifeSciences forums that will be held this fall. The other two events will be held in Silicon Valley and New York City.

“The addition of the… programs in Madison offers a terrific source of deal flow for regional investors and new opportunities to grow the economy,” said Lauren Flanagan, managing director of Phenomenelle Angels Fund, a Madison-based early-stage investment fund.

Scheduled speakers at the event include Wisconsin Lt. Gov. Barbara Lawton and Lorrie Keating Heinemann, secretary of the state Department of Financial Instutions.

For more information or to register for the event, visit: https://www.springboardenterprises.org/vcf/atl/madison.

Investment group acquires PKware

Milwaukee-based PKware Inc. has been acquired by an investment group that includes Novacap Technologies, Montreal; Maranon Capital, Chicago; and Garrett Investments LLC, Milwaukee.

PKware's management team and employees will be retained, and the company will continue to be headquartered in Milwaukee.

Grace Matthews Inc., a Milwaukee-based investment bank, coordinated the formation of the investment group, negotiated the transaction with PKware's shareholders and invested in the transaction through Garrett Investments, an investment holding company affiliated with Grace Matthews.

PKware was founded in 1986 by Milwaukee software engineer Phil Katz, who passed away in 2000. The company develops and markets data file encryption and compression software that facilitates secure data storage and inter-network communications.

PKware originated the popular "ZIP" file compression program that has been installed on millions of computers worldwide.

The company also developed SecureZIP and PKZI, which are popular programs used by IT professionals.

Novacap Technologies was the lead investor in the transaction, acquiring the majority of PKware's stock. Maranon Capital provided $38 million in financing for the transaction, with $24 million in senior revolving credit and term debt, $10 million in mezzanine financing, and $4 million in equity. Grace Matthews invested over $1 million in equity through its affiliate Garrett Investments.

"Grace Matthews advised the current shareholders when they bought PKware from Phil Katz's estate in 2001, and we welcomed the opportunity to work with the company again so that this growing, innovative company would remain here in Milwaukee," said John Beagle, managing director at Grace Matthews. "The company is a real gem in Milwaukee's business community, and attracts the kind of talented, high-technology workers who otherwise might be tempted to move out-of-state to a more 'tech-centric' area."

Doug Mitman is the Grace Matthews managing director who negotiated the transaction.

"Given the state of the economy, the mergers and acquisitions environment is extremely challenging, but this transaction proves that you can still close deals when you negotiate the right terms and are working with an excellent company,” he said. “We were fortunate to find Novacap, who understood PKware's potential and agreed to take a majority position in the equity, and Maranon, who generously supported the deal with debt financing and additional equity. Grace Matthews showed its commitment by putting up more than $1 million for an equity stake through our affiliate Garrett Investments.”

As the recession drags on, consumers may be considering a loan from their life insurance policies as a source of ready cash. But think long and hard before making such a move and learn about the true implications of this kind of loan-related decision. Life insurance policy loans are almost universally misunderstood and mismanaged. Complicating policy loan decisions further is that life insurance agents are generally not trained in providing optimal advice about borrowing against policies.

Few understand the true cost of borrowing against life insurance policies and that this type of loan is often more expensive than other forms of borrowing. Consumers fall into the trap of thinking that borrowing does not have any associated costs because they are “paying interest to themselves.” Many think they are somehow getting essentially a “free” loan and perhaps even enhancing their policy at the same time! Few realize that they are not borrowing from themselves, but instead they’re borrowing from the insurer with the policy’s cash value serving as collateral. Additionally, the interest on the loan is not tax deductible.

To read more, click here.

Modine expands stock offering

Racine-based Modine Manufacturing Co. has expanded its previously announced public stock offering from 9 million to 12 million shares, priced at $7.15 per share.

The offering includes a 30-day option for the underwriters to purchase up to an additional 1.8 million shares on the same terms and conditions.

Assuming no exercise of the underwriters' option, Modine expects to receive net proceeds from the offering of approximately $81 million after deducting underwriting discounts and commissions and estimated expenses of the offering.

Modine intends to use the net proceeds from the offering to reduce indebtedness and for general corporate purposes.

J.P. Morgan is the book-running manager and Milwaukee-based Robert W. Baird & Co. Inc. is the lead manager for the offering. Comerica Securities and KeyBanc Capital Markets are acting as co-managers.

Koss plans stock split to meet Nasdaq requirements

Glendale-based Koss Corp. has submitted a two-for-one stock split plan to the meet the minimum listing standards of the Nasdaq Global Market.

The plan will be reviewed by Nasdaq and, if deemed to be acceptable, Koss would be granted up to 105 calendar days to achieve compliance.

Koss executives believe that a two-for-one forward stock split would increase the number of the company’s publicly held shares sufficiently to comply with the listing rule.

On Sept. 16, Koss announced it had received a notice from Nasdaq indicating that it no longer meets the minimum 750,000 publicly held shares requirement for the Nasdaq Global Market.

Koss said that if it is unsuccessful in maintaining its Nasdaq listing, the company may pursue listing and trading of its common stock on the Over-The-Counter Bulletin Board or another securities exchange or association with different listing standards than Nasdaq.

Koss manufactures high-fidelity stereophones, speaker-phones, computer headsets, telecommunications headsets, active noise canceling stereophones, wireless stereophones and compact disc recordings of American Symphony Orchestras on the Koss Classics label.

“The CEO of Everything: Marquette Women Balancing Careers and Families” seminar will be held on Wednesday, Oct. 7 from 11:30 a.m. to 1:30 p.m. in the third-floor ballroom of the Alumni Memorial Union, 1442 W. Wisconsin Ave., Milwaukee. The event is part of Marquette University’s Centennial Celebration of Women.

The panel comprises successful alumnae with a variety of backgrounds and career choices who share a common bond – they are all working mothers. They include:

• JoAnne Anton, state director for U.S. Sen. Herb Kohl
• Kathryn Lauer, M.D., associate professor of anesthesiology, vice chair for clinical affairs, Department of Anesthesiology at the Medical College of Wisconsin
• Mary McDonnell, CEO of Geneva Trading USA LLC
• Jill Morin, managing partner of Kahler Slater Architects

The $15 luncheon is open to the public. Online registration and payment is available at: www.marquette.edu/women100events.

The 7th annual MidAmerica Healthcare Venture Forum will be held Nov. 11-12 at Monona Terrace, One John Nolen Dr., Madison. The event is the Midwest’s largest annual event showcasing biotech, pharma, medical devices, and industrial biotech companies. It will feature more than 250 participants including venture capitalists, corporate executives, health care startup companies, university researchers and technology transfer officers, and numerous state and regional economic development officials. For information and registration, visit www.midamericahealthcareforum.com.

The Sheldon B. Lubar School of Business at UW-Milwaukee will present “An Insider’s View of the Madoff Scandal” as part of its business ethics speaker series on today from noon to 1:30 p.m. at the Pfister Hotel, 424 E. Wisconsin Ave., Milwaukee. The keynote speaker will be Frank Casey, president of Fortune-USA, a London-based alternative investment firm. Casey was one of three investment professionals who believed that Madoff was running a Ponzi scheme as early as 2000. Cost is $40 per person or $400 for tables of 10. For information call (414) 229-4235.

World Trade Center Wisconsin will present “Mergers/Acquisitions/Divestitures: Growth & Survival Strategies for Challenging Times” on Thursday, Oct, 1, from 7:30 a.m. to noon in the offices of Foley & Lardner, 777 E. Wisconsin Ave., Milwaukee. The seminar will include presentations on the global M&A market, financing transactions in today's economy, how due diligence and tax concerns have changed over the last year, and more. Cost is $75 for WTC members and $115 for non-members. For information or to register, call (414) 274-3840.

Banking

• Wisconsin Department of Financial Institutions 
• Federal Deposit Insurance Corp.
• Wisconsin Bankers Association 
• Community Bankers of Wisconsin
• Wisconsin Mortgage Bankers Association
• American Bankers Association
• Bankers Association for Finance and Trade
• Commercial Finance Association 
• Risk Management Association

Mergers & Acquisitions

• Association for Corporate Growth 
• International Business Brokers Association 
• Mergers.com

Wealth Management/Financial/Retirement Planning

• Financial Planning Association
• Financial Planning Association of Southern Wisconsin
• Investment Management Consultants Association
• National Association of Personal Financial Advisors (NAPFA)

Other 

• Society of Financial Service Providers
• Small Business Administration
• State public awareness campaign
• Wisconsin Credit Union League
• CFA Institute
• CFA Society of Milwaukee
• Wisconsin Angel Network