Let the capital-raising begin

One of Richmond’s newest banks has set the price on a public stock offering that could help it raise up to $17 million in fresh capital.

Xenith Bankshares, the holding company for Xenith Bank, announced in November its plan to sell shares and said it would look to raise as much as $42 million.

The downtown-based company announced Wednesday that it is offering 4 million shares at $4.25 per share. The offering is open and is expected to close April 4.

The company has said it will use the money to fuel loan growth, hiring and to potentially acquisitions.

Xenith 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.

Xenith has total assets of $251 million. It lost $5.3 million during 2010, compared with a  $6.2 million loss in 2009. Its loan portfolio reached $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, or 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 until it is closed.

One of Richmond’s newest banks has set the price on a public stock offering that could help it raise up to $17 million in fresh capital.

Xenith Bankshares, the holding company for Xenith Bank, announced in November its plan to sell shares and said it would look to raise as much as $42 million.

The downtown-based company announced Wednesday that it is offering 4 million shares at $4.25 per share. The offering is open and is expected to close April 4.

The company has said it will use the money to fuel loan growth, hiring and to potentially acquisitions.

Xenith 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.

Xenith has total assets of $251 million. It lost $5.3 million during 2010, compared with a  $6.2 million loss in 2009. Its loan portfolio reached $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, or 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 until it is closed.

This story is for our paid subscribers only. Please become one of the thousands of BizSense Pro readers today!

Your subscription has expired. Renew now by choosing a subscription below!

For more informaiton, head over to your profile.

Profile


SUBSCRIBE NOW

 — 

 — 

 — 

TERMS OF SERVICE:

ALL MEMBERSHIPS RENEW AUTOMATICALLY. YOU WILL BE CHARGED FOR A 1 YEAR MEMBERSHIP RENEWAL AT THE RATE IN EFFECT AT THAT TIME UNLESS YOU CANCEL YOUR MEMBERSHIP BY LOGGING IN OR BY CONTACTING [email protected].

ALL CHARGES FOR MONTHLY OR ANNUAL MEMBERSHIPS ARE NONREFUNDABLE.

EACH MEMBERSHIP WILL ONLY FUNCTION ON UP TO 3 MACHINES. ACCOUNTS ABUSING THAT LIMIT WILL BE DISCONTINUED.

FOR ASSISTANCE WITH YOUR MEMBERSHIP PLEASE EMAIL [email protected]




Return to Homepage

Subscribe
Notify of
guest

1 Comment
oldest
newest most voted
Inline Feedbacks
View all comments
charles
charles
13 years ago

Quality of deposits would have been EXTREMELY germane to this article. What percentage are brokered?