ALBANY, Ga. -- Community Capital Bancshares Inc., the holding company for AB&T National Bank, recently completed a Series B cumulative convertible preferred stock offering, marking a meaningful turning point for the bank.
The Series B sale generated $2.8 million at $6.58 per share. That, coupled with $2.2 million generated from an earlier Series A sale (at $3.29 per share), represents a $5 million recapitalization for AB&T.
According to AB&T President/CEO Luke Flatt, the offering was fully subscribed by local supporters and investors eager to strengthen the local bank.
"I am very pleased to report that we sold out the Series B preferred offering," Flatt said. "Despite the sluggish economic environment and the poor climate for investment in bank stocks, this is an accomplishment of which we are proud.
"This will allow us to grow, as we now have the capitalization level required by regulators."
Flatt said the influx of new money will be "invested in new technology, advertising and marketing, and human resources, all of which will make the bank more competitive."
He stressed that all of the recapitalization was carried out locally.
"Our new investors have placed a tremendous amount of trust and confidence in our organization," Flatt said. "Our entire team appreciates that vote of confidence and is 100 percent focused on delivering superior returns though exceptional customer service.
"What our communities need more than anything is a local bank that is well-capitalized and supported by its community leaders. The new capital gives us a better opportunity to serve customers well and expand our customer base."
To coincide with the influx of capital, the bank is launching a new brand that reflects the bank's community-oriented personality and vision.
"At AB&T, it's a new day," Flatt said. "We withstood some difficult times, and the challenges have refined our service and spirit like gold."
Formed in 1999, AB&T ran into some difficulties just prior to the near-collapse of the nation's financial system that precipitated the current recession. Ironically, that might have actually helped the local bank.
"The tough times started earlier for us," Flatt said. "We were dealing with our problems long before the rest of the banking industry was aware of the oncoming crisis.
"This actually helped our recovery come a little earlier than the rest of the industry. While we haven't completely recovered, we've got a head start."
Flatt added that the new capital helps in the bank's recovery and creates a win-win opportunity for stockholders and customers alike, creating a better capitalized bank for investors and a stronger, more stable financial institution.