Village Bank, headquartered on Midlothian Turnpike, is working on a major capital raise. Photo courtesy of CBRE.
A local bank’s attempt to raise a fresh pile of cash is now in the hands of its shareholders.
Midlothian-based Village Bank and its holding company have begun a stock offering that will look to raise a total of $14.58 million in new capital. It set the price at $13.87 per share and is offering 1.05 million shares.
The company sent out the prospectus for the offering last week, and it will now wait to see the appetite of its current shareholders, who have first dibs on buying into the offering.
The bank’s directors and executives also have agreed to purchase up to about 85,000 shares in the offering, or roughly $1.17 million.
Village also has a fail-safe in place in the form of Northern Virginia investor Kenneth Lehman, who has agreed to purchase the shares that are left over after current stockholders have had a chance to buy in.
The company’s previous prospectus stated that Lehman’s investment could be up to about $8 million. Lehman could end up owning a controlling interest in the bank, and he already has approval from state regulators to do so.
The offering ends March 20, and the bank will look to have the raise finalized by the end of March. Village does have the option to extend the dates of the offering depending on interest and other factors.
The new pot of capital would go a long way toward helping Village get out of the holding pattern it’s been stuck in over the last few years.
Its bottom line has suffered from lingering high levels of bad loans and foreclosed real estate since the recession. And its efforts to raise capital have been hindered in part by that stagnant growth and two stringent agreements with the Federal Reserve and the FDIC that require it to maintain certain capital levels.
Village ended 2014 with a loss of $2.47 million for the year, an improvement from its $4.89 million loss in 2013.
It did make some progress during the year in decreasing its levels of nonperforming assets made up of foreclosed real estate and soured loans. Those have been a particular thorn in its side in recent years.
It ended 2014 with $20.11 million in NPAs, down from $35.38 million at the end of 2013.
Village has hired Compass Point Research & Trading and Boenning & Scattergood to lead the offering. It’s also using Richmond law firm LeClairRyan during the process.
Village Bank, headquartered on Midlothian Turnpike, is working on a major capital raise. Photo courtesy of CBRE.
A local bank’s attempt to raise a fresh pile of cash is now in the hands of its shareholders.
Midlothian-based Village Bank and its holding company have begun a stock offering that will look to raise a total of $14.58 million in new capital. It set the price at $13.87 per share and is offering 1.05 million shares.
The company sent out the prospectus for the offering last week, and it will now wait to see the appetite of its current shareholders, who have first dibs on buying into the offering.
The bank’s directors and executives also have agreed to purchase up to about 85,000 shares in the offering, or roughly $1.17 million.
Village also has a fail-safe in place in the form of Northern Virginia investor Kenneth Lehman, who has agreed to purchase the shares that are left over after current stockholders have had a chance to buy in.
The company’s previous prospectus stated that Lehman’s investment could be up to about $8 million. Lehman could end up owning a controlling interest in the bank, and he already has approval from state regulators to do so.
The offering ends March 20, and the bank will look to have the raise finalized by the end of March. Village does have the option to extend the dates of the offering depending on interest and other factors.
The new pot of capital would go a long way toward helping Village get out of the holding pattern it’s been stuck in over the last few years.
Its bottom line has suffered from lingering high levels of bad loans and foreclosed real estate since the recession. And its efforts to raise capital have been hindered in part by that stagnant growth and two stringent agreements with the Federal Reserve and the FDIC that require it to maintain certain capital levels.
Village ended 2014 with a loss of $2.47 million for the year, an improvement from its $4.89 million loss in 2013.
It did make some progress during the year in decreasing its levels of nonperforming assets made up of foreclosed real estate and soured loans. Those have been a particular thorn in its side in recent years.
It ended 2014 with $20.11 million in NPAs, down from $35.38 million at the end of 2013.
Village has hired Compass Point Research & Trading and Boenning & Scattergood to lead the offering. It’s also using Richmond law firm LeClairRyan during the process.