Cornerstone Financial Corporation (OTCPK:CFIC), the parent company of Cornerstone Bank, announced the successful completion of a private placement of $13.7 million of common stock. The Company issued 1,374,000 shares of common stock at a price of $10.00 per share to mostly institutional investors. The Company plans to use the additional capital for general corporate purposes including organic growth initiatives and the pay down of outstanding debt.
President and Chief Executive Officer Eugene D'Orazio discussed the offering: "We are very pleased to announce the successful completion of our common stock offering. This new capital will be used to support organic growth opportunities in the markets we serve and further enhance the value of our franchise. Furthermore, the addition of premier institutional bank investors to our shareholder base will help to promote increased liquidity and financial sponsorship."
Janney Montgomery Scott, LLC acted as the sole placement agent in the transaction. The Company received legal counsel from Windels Marx Lane & Mittendorf, LLP and Stevens & Lee provided legal counsel to the placement agent.
About Cornerstone Financial Corporation:
Cornerstone Financial Corporation, based in Mount Laurel, NJ, operates as the bank holding company for Cornerstone Bank, founded in 1999, that provides various banking products and services for individuals and businesses. The company accepts checking and money market, savings, certificates of deposit, and individual retirement accounts. Its loan products include home equity line of credit; term and small business administration/government backed loans; business line of credit and letters of credit; and commercial mortgages. The company also offers remote deposit capture, reorder check, and online banking services.
This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the company's control and could impede its ability to achieve these goals. These factors include general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, and results of regulatory exams, among other factors.
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