Colonial Financial Services, Inc. Commences Syndicated Community Offering and Increases Purchase Limitations

Jun 28, 2010, 09:00 ET from Colonial Bankshares, Inc.

VINELAND, N.J., June 28 /PRNewswire-FirstCall/ -- Colonial Bankshares, Inc. (Nasdaq: COBK), announced today that Colonial Financial Services, Inc., the recently formed Maryland corporation and proposed holding company for Colonial Bank, FSB, has commenced the syndicated community offering portion of the second step conversion to sell shares of common stock not subscribed for in the subscription offering or the community offering to the general public at $10.00 per share.  Stifel, Nicolaus & Company, Incorporated is acting as sole book-running manager for the syndicated community offering.  The syndicated community offering will be conducted on a best efforts basis and none of the members of the syndicate group are required to purchase any shares in the offering.

Colonial Bankshares, Inc. also announced today that its stockholders and the members of Colonial Bankshares, MHC have approved Colonial Bankshares, MHC's Plan of Conversion and Reorganization providing for the second-step conversion and stock offering.  

In addition, Colonial Bankshares, Inc. announced that Colonial Financial Services, Inc. has filed prospectus supplements with the Securities and Exchange Commission increasing the maximum purchase limitation for purchasers acting together with others, in all categories of the offering combined from 60,000 shares ($600,000) to 100,000 shares ($1,000,000).  The purchase limitation for individual purchasers of 30,000 shares ($300,000) has not changed.  Consistent with the prospectus dated May 14, 2010, the only persons who will be resolicited are those who subscribed for the $600,000 group maximum purchase limit in the subscription offering and indicated on the stock order form a desire to purchase additional shares if the maximum purchase limits were increased.  Any increased orders with full payment will be due by 12:00 noon, Eastern Time, on July 6, 2010.  All other eligible subscribers and community members who properly completed and timely submitted a stock order form will be allocated the number of shares of common stock requested in their stock order form.

The completion of the conversion and offering is subject to, among other things, selling a minimum of 2,295,000 shares in the offering and the receipt of all necessary final regulatory approvals.

This press release contains certain forward-looking statements about the conversion and reorganization.  Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts.  They often include words such as "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may."  Forward-looking statements, by their nature, are subject to risks and uncertainties.  Certain factors that could cause actual results to differ materially from expected results include delays in consummation of the transactions contemplated by the Plan of Conversion and Reorganization, difficulties in selling the conversion stock or in selling the conversion stock within the expected time frame, increased competitive pressures, changes in the interest rate environment, general economic conditions or conditions within the securities markets, and legislative and regulatory changes that could adversely affect the business in which Colonial Bankshares, Inc. and its subsidiaries are engaged.

A registration statement relating to these securities has been filed with the United States Securities and Exchange Commission.  This press release is neither an offer to sell nor a solicitation of an offer to buy common stock.  The offer will be made only by means of the written prospectus forming part of the registration statement (and, in the case of the subscription offering, an accompanying stock order form).  

Investors are able to obtain all documents filed with the Securities and Exchange Commission by Colonial Financial Services, Inc. free of charge at the Securities and Exchange Commission's website, www.sec.gov. In addition, documents filed with the Securities and Exchange Commission by Colonial Financial Services, Inc. are available free of charge from the Corporate Secretary of Colonial Financial Services, Inc. at 2745 S. Delsea Drive, Vineland, New Jersey 08360, Attention: Corporate Secretary.

The shares of common stock are not savings accounts or savings deposits, may lose value and are not insured by the Federal Deposit Insurance Corporation or any other government agency.

SOURCE Colonial Bankshares, Inc.