Allegiance Bank of North America Announces
May 14, 2010 12:25 PM Eastern Daylight Time
BALA CYNWYD, Pa.--(EON: Enhanced Online News)--Allegiance Bank of North America (the “Bank”) today
announced the engagement of Cohen & Company Securities, LLC (“Cohen”) (“COHN” – AMEX) to sell a
minimum of 2,000,000 shares and up to 5,000,000 shares (the “Shares”) of the Bank’s common stock, par value
$1.00 per share (the “Common Stock”), on a best efforts basis to accredited investors at a price of $10.00 per
share, resulting in gross proceeds of up to $50,000,000 (the “Offering”).
Under the terms of the engagement which has been unanimously approved by the Bank’s Board of Directors, the
Bank will effect a reverse stock split so that there will be no greater than 125,000 common shares outstanding
immediately prior to the closing of the Offering, subject to shareholder approval. The reverse stock split and
additional information about the offering will be more fully described in a proxy statement to be distributed to the
Bank’s shareholders in the near future.
As previously reported, on November 3, 2009, the Federal Deposit Insurance Corporation “FDIC”) and the
Commonwealth of Pennsylvania Department of Banking and Insurance “Department”) each issued a Consent Order
(“Order”) designed to improve the Bank’s overall performance. The Bank has implemented actions to achieve the
objectives in the Order and has been successful in the resolution of certain of these objectives. One of the specific
directives within the Order is to achieve an 8% tier 1 leverage capital ratio and a 12% total risk-based capital ratio
by June 30, 2010. The Bank’s tier 1 leverage capital ratio was 3.67% and its total risk based capital ratio was
6.65% at March 31, 2010.
Gregg J. Wagner, President and CEO of the Bank, stated, “We are very pleased to engage Cohen in the private
offering of our common stock to significantly increase our capital and comply with regulatory capital directives. The
new capital will