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Allegiance Bank Of North America Q2 Loss Narrows; Reveals Extension Of Private Placement Offering To Sept. 30 - Quick Facts

(RTTNews) - Allegiance Bank of North America (ABPA.OB) Friday reported a second quarter net loss of $1.5 million or $0.31 per share, compared to a net loss of $7.0 million or $1.46 per share in the prior year quarter.

The second quarter 2009 net loss was the result of the Bank initiating a strategy to significantly reduce its non-performing loans and classifying its Paramount Mortgage and Capital, LLC loan portfolio "loans held for sale".

Net interest income for the quarter was $1.6 million, compared to $1.9 million in last year period. Total other income for the period was $187 thousand.

Further, the company said it agreed to extend the Private Placement offering to September 30, 2010 from August 30, 2010. On May 14, 2010 the Bank announced the engagement of Cohen to sell a minimum of 2 million shares and up to 5 million shares of the Bank's common stock, par value $1.00 per share, on a best efforts basis to accredited investors at a price of $10.00 per share, resulting in gross proceeds of up to $50 million.

Under the terms of the engagement, the Bank would effect a reverse stock split so that there would be no more than 125,000 common shares outstanding immediately prior to closing the offering.