Hamilton State Bancshares Inc. has raised $231.6 million in capital that it plans to use to exit the Troubled Asset Relief Program and buy failed banks.

Hamilton, of Hoschton, Ga., has received $60 million each from affiliates of Angelo, Gordon & Co. and Tailwind Capital, or nearly as much as the $245 million-asset company's size. The transaction, which was announced Monday, called for Hamilton to restructure its board to add two seats for its new investors and another six outsiders.

The raise was a combination of a private offering, common stock sale and convertible securities. Hamilton said it plans to use proceeds to pay off its $7 million in Tarp funds, deploy capital to the unit Hamilton State Bank; and pursue government-assisted acquisitions.

Art Peponis, co-head of private equity at Angelo, Gordon and Larry Sorrel, a Tailwind managing partner, joined the board. Hamilton also added Ray Christman, a former president and chief executive of the Federal Home Loan Bank of Atlanta; Joseph Sclafani, a former chief accounting officer at JPMorgan Chase & Co.; Steven Shafran, a former Treasury Department senior adviser; and John Walker, a banking lawyer. JPMorgan Chase's Dennis O'Leary also joined the board.

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