Citizens Bancshares Corp. (CZBS)

[norweger1979]

Press Release | Thu Apr 16, 2009 1:57pm EDT
Context Capital Partners Extends Family of Bank-Focused Private Equity Funds


Following the Success of the Initial Context BH Equity Fund, Context BH Equity Fund II, LP Will Continue Investments in Strong Community Banks

BALA CYNWYD, Pa.--(Business Wire)--

Context Capital Partners today announced that it has raised and is now deploying
additional capital for its Context BH Equity Fund family. The Context BH Equity
Fund invests in de novo and community banks throughout the United States and now
has a total of $44 million under management.

The Context BH Equity Fund focuses on investments in well-capitalized community
banks operating in underserved markets with proven management teams, few problem
loans, and high growth potential. These banks typically provide financially
attractive initial investment opportunities, but have become even more appealing
in the current banking environment. The ongoing banking sector crisis has
negatively impacted all bank stocks, even those of comparatively healthy young
banks.

"It`s no secret that the banking industry has been severely impacted by the
current economic downturn; yet there remains a substantial valuation gap between
relatively new community banks and their larger financial brethren," said Bob
Hendershott, Context BH Equity Fund manager. "Many of these community banks
remain strong and focused, and are carrying on with business as usual - making
loans, taking deposits, and helping individuals and businesses in their
communities. Moreover, their relationships with solid medium-sized businesses in
their communities are deepening as larger banks are distracted with other
issues."

"Market turmoil has created a number of scenarios that work in our favor.
Capital is at a premium and priced accordingly, and most bank stocks have been
knocked down to historically low levels. As a result, we`re seeing bank
valuations at substantial discounts to their relative book value," noted Context
Capital Partners Managing Director Ron Biscardi. "In fact, in our investments
over the past four months, we`ve realized an aggregate discount of more than 40
percent relative to tangible book value."

The Funds` managers, Yaron Brook, Ph.D., and Robert Hendershott, Ph.D., apply
their extensive experience with bank trading strategies to identify investment
candidates. Their proprietary evaluation criteria, deep commercial banking
expertise, and industry insights enable the early identification of ideal
community banks.

The Context BH Equity system tracks nearly 700 qualified community banks on an
ongoing basis. Over the past 18 months, the team has evaluated over 300 deals
and conducted significant due diligence on over 100 banks. With 27 banks
currently in its portfolio, the Context BH Equity Fund is recognized as one of
the few liquidity providers in the market.

The Context BH Equity Fund anticipates investing in up to an additional dozen
banks during 2009. Consistent with Context Capital Partners` unique Sponsored
Private Equity Funds strategy, the Fund is highly-focused and structured around
a distinct investment idea with strong potential for exceptional returns.

About Context Capital Partners

Context Capital Partners is engaged in the business of identifying and creating
unique, replicable investment ideas. Context establishes Sponsored Private
Equity Funds to support these ideas, their management teams, and ultimately,
deliver superior returns to its investors. The Context BH Equity Fund II is one
of seven Context sponsored investment vehicles, including the Titan Loan
Investment Fund, L.P., a $100 million private equity fund dedicated to the
acquisition of commercial real estate loan assets throughout the United States.
For more information on Context, visit www.contextcp.com.





Garfield Group Public Relations
Cindy Spiecker, 215-867-8600 x255
[e-mail]

Copyright Business Wire 2009

http://www.reuters.com/article/idUS180400+16-Apr-2009+BW20090416