Griffin Serves as Advisor to Colonial American Bank in its Placement of Common Equity

Situation
Facing deteriorating asset quality, increased regulatory pressure and insufficient capital, Colonial American Bank in Horsham, PA, a single branch bank with assets of $24 million, minimal capital and TARP, engaged Griffin Financial Group to explore a substantial capital infusion to augment capital, improve the quality of capital, possibly repay TARP CPP and also provide for the bank’s growth initiatives.

Solution
Griffin ran a selective process, resulting in the September 7, 2010, announcement between Colonial American and an investor group. The investor group invested $17 million in capital through the purchase of newly issued shares of Colonial American Bank common stock. Deal pricing was approximately 98% of tangible book value. Upon completion of the deal, investors collectively own approximately 95% of the outstanding common stock of Colonial American Bank.