A veteran Virginia bank investor, who in recent years bought major chunks of at least two Richmond-based institutions, has made a similar move in Fredericksburg.
Kenneth Lehman last month struck a deal with Virginia Partners Bank to inject the $323 million privately held institution with $8.6 million worth of capital.
Lehman, who also owns a majority stake in Midlothian-based Village Bank, will initially purchase 929,152 shares of Virginia Partners Bank’s stock for around $9.25 per share. That will give him a 27 percent stake in the bank, making him the largest individual shareholder.
The deal adds to Lehman’s track record of buying into community banks. In addition to his 40 percent ownership stake of Village Bank, Lehman’s previous investments include Virginia Commerce Bancorp, Tower Bancorp, Four Oaks Bank & Trust, Marine Bank & Trust, The Bank of Delmarva and Liberty Bell Bank.
Several of those investments were in banks that were eventually acquired, including his stake in the former Glen Allen-based First Capital Bank, which was purchased by Park Sterling last year in an $87 million deal.
Kenneth Lehman
Lehman, who did not respond to an emailed request for comment, also gets warrants to purchase an additional 929,152 shares of Virginia Partners Bank stock over 10 years.
Lloyd Harrison, president and CEO of Virginia Partners Bank, said the deal with Lehman puts the bank in position to grow internally, into other markets and to take advantage of potential acquisitions.
“We’ve been successful at growing the bank and it was time to raise additional capital to continue our strategic plan,” Harrison said.
Regarding Lehman, Harrison added: “He is a very smart guy, a very smart community banker investor. He’s got a strategic mind and he also happens to be a really nice guy.”
Virginia Partners Bank is one of the newer banks in the state. It was founded in August of 2008, not exactly the ideal time for a bank to open its doors.
Harrison, a UVA and William & Mary grad, was previously CEO of Mercantile Southern Maryland Bank, following positions at The National Bank of Fredericksburg and First National Bank of Maryland.
Harrison co-founded Virginia Partners Bank with Bill Young and Wallace King.
The bank has three branches in the Fredericksburg market and one in Maryland, where it operates at Maryland Partners Bank.
As for the bank’s future expansion plans, Harrison said the recently hyper-competitive Richmond market isn’t likely one of its targets in the near future.
“At the moment, I think Richmond is over-banked, so I don’t see us going down there any time soon,” he said. “It seems like everybody decided to go there in the last few years.”
A veteran Virginia bank investor, who in recent years bought major chunks of at least two Richmond-based institutions, has made a similar move in Fredericksburg.
Kenneth Lehman last month struck a deal with Virginia Partners Bank to inject the $323 million privately held institution with $8.6 million worth of capital.
Lehman, who also owns a majority stake in Midlothian-based Village Bank, will initially purchase 929,152 shares of Virginia Partners Bank’s stock for around $9.25 per share. That will give him a 27 percent stake in the bank, making him the largest individual shareholder.
The deal adds to Lehman’s track record of buying into community banks. In addition to his 40 percent ownership stake of Village Bank, Lehman’s previous investments include Virginia Commerce Bancorp, Tower Bancorp, Four Oaks Bank & Trust, Marine Bank & Trust, The Bank of Delmarva and Liberty Bell Bank.
Several of those investments were in banks that were eventually acquired, including his stake in the former Glen Allen-based First Capital Bank, which was purchased by Park Sterling last year in an $87 million deal.
Kenneth Lehman
Lehman, who did not respond to an emailed request for comment, also gets warrants to purchase an additional 929,152 shares of Virginia Partners Bank stock over 10 years.
Lloyd Harrison, president and CEO of Virginia Partners Bank, said the deal with Lehman puts the bank in position to grow internally, into other markets and to take advantage of potential acquisitions.
“We’ve been successful at growing the bank and it was time to raise additional capital to continue our strategic plan,” Harrison said.
Regarding Lehman, Harrison added: “He is a very smart guy, a very smart community banker investor. He’s got a strategic mind and he also happens to be a really nice guy.”
Virginia Partners Bank is one of the newer banks in the state. It was founded in August of 2008, not exactly the ideal time for a bank to open its doors.
Harrison, a UVA and William & Mary grad, was previously CEO of Mercantile Southern Maryland Bank, following positions at The National Bank of Fredericksburg and First National Bank of Maryland.
Harrison co-founded Virginia Partners Bank with Bill Young and Wallace King.
The bank has three branches in the Fredericksburg market and one in Maryland, where it operates at Maryland Partners Bank.
As for the bank’s future expansion plans, Harrison said the recently hyper-competitive Richmond market isn’t likely one of its targets in the near future.
“At the moment, I think Richmond is over-banked, so I don’t see us going down there any time soon,” he said. “It seems like everybody decided to go there in the last few years.”
I definitely agree with his sentiment that Richmond is ‘over-banked’. I think it’s a smart play to stay out of the area as I suspect there will be more consolidation coming in the next few years in Richmond. Best of luck to him.