May 17, 2010 (FinancialWire) — Allegiance Bank of North America (OTCBB: ABPA) said it has engaged Cohen & Company Securities, LLC (AMEX: COHN) to sell a minimum of two million shares and up to five million shares of the bank’s common stock on a best efforts basis to accredited investors at a price of $10 per share, resulting in gross proceeds of up to $50 million.

Under the terms of the engagement which has been unanimously approved by the bank’s board, Allegiance 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.

As previously reported, on November 3, 2009, the Federal Deposit Insurance Corp. and the Commonwealth of Pennsylvania Department of Banking and Insurance each issued a consent order designed to improve the bank’s overall performance.

The bank said it 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.

Pennsylvania-based Allegiance Bank has offices in Berwyn, King of Prussia, Old City and Worcester.

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