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