The community banking sector remains significantly underrepresented in the private equity markets, with private equity investments of only two percent (2%) – one of the smallest segments of private investment due in large part to the regulatory barriers of entry.

Community banks have issued over $16 billion of common equity over the last three years. New equity issuance by private community banks represents approximately half of the total, yet banking and financial services account for the one of the smallest percentages of the private equity universe. In addition, Trust Preferred securities issuance, a traditional low cost source of capital, is restricted to 25% of capital in community banks and it is generally unavailable to newer banks due to pool restrictions – these factors drive increasing demand for traditional equity capital by community banks.

Patriot seeks to become the preferred provider of growth capital for community banks and thrifts that meet our investment parameters, by providing a faster and less costly means of raising capital. In times of tight liquidity where community banks have limited access to capital, Patriot Financial Partners, L.P. can provide rapid access to growth capital.