The parent of one Richmond’s newest banks is looking to commence a big stock offering.
For the first time since November, Xenith Bankshares released more details about its plans to raise millions in fresh cash.
The downtown-based parent of Xenith Bank said Thursday that it will offer 7 million shares — likely within the next two weeks — in an attempt to raise up to $42 million. It also disclosed that it expects to set the share price for the offering in the next two weeks.
It first disclosed in late November a plan to sell shares and raise the money to fuel loan growth and to potentially give it some cash for acquisitions.
Xenith has hired Sandler O’Neill + Partners and Stifel, Nicolaus & Company to handle the offering.
Xenith Bank was created in late 2009 after a merger with Suffolk-based First Bankshares, then the parent of SuffolkFirst Bank. The Xenith parent company used SuffolkFirst’s bank charter to get Xenith Bank off the ground after the financial crisis made getting a new bank charter next to impossible.
Although it is still in start-up mode and is losing money every quarter, Xenith has the benefit of a cleaner slate than many of its local peers in the form of lower levels of problem loans.
Xenith has total assets of $251 million. It lost $5.3 million during 2010, a decrease from $6.2 million in 2009, the year it launched its bank. Its loan portfolio grew to $151 million at year’s end, up from $102 million. Xenith had $175 million in deposits as of Dec. 31, up from $114 million at the end of 2009. It reported $4.3 million in non-performing assets — 1.7 percent of its total assets.
Xenith has five branches across Richmond, Suffolk and Northern Virginia.
As is the norm with such offerings, Xenith is under an SEC-mandated silent period and is prohibited from discussing the offering.
The parent of one Richmond’s newest banks is looking to commence a big stock offering.
For the first time since November, Xenith Bankshares released more details about its plans to raise millions in fresh cash.
The downtown-based parent of Xenith Bank said Thursday that it will offer 7 million shares — likely within the next two weeks — in an attempt to raise up to $42 million. It also disclosed that it expects to set the share price for the offering in the next two weeks.
It first disclosed in late November a plan to sell shares and raise the money to fuel loan growth and to potentially give it some cash for acquisitions.
Xenith has hired Sandler O’Neill + Partners and Stifel, Nicolaus & Company to handle the offering.
Xenith Bank was created in late 2009 after a merger with Suffolk-based First Bankshares, then the parent of SuffolkFirst Bank. The Xenith parent company used SuffolkFirst’s bank charter to get Xenith Bank off the ground after the financial crisis made getting a new bank charter next to impossible.
Although it is still in start-up mode and is losing money every quarter, Xenith has the benefit of a cleaner slate than many of its local peers in the form of lower levels of problem loans.
Xenith has total assets of $251 million. It lost $5.3 million during 2010, a decrease from $6.2 million in 2009, the year it launched its bank. Its loan portfolio grew to $151 million at year’s end, up from $102 million. Xenith had $175 million in deposits as of Dec. 31, up from $114 million at the end of 2009. It reported $4.3 million in non-performing assets — 1.7 percent of its total assets.
Xenith has five branches across Richmond, Suffolk and Northern Virginia.
As is the norm with such offerings, Xenith is under an SEC-mandated silent period and is prohibited from discussing the offering.
On the subject of banking and money, whats the deal with the FEDs taking control of what mortgage companies pay their sales people? Are us Realtors next? Are the car sales people next? Why can’t the Feds keep their BIG noses out of the businesses business?They can’t designate the activities of their own governmental business, how do they expect to get results by designating the activities of individual businesses?