MCLEAN, Va., Sept. 12, 2016 /PRNewswire/ -- Old Dominion National Bank announced that it has successfully raised an aggregate of $20 million in new equity capital from accredited investors, through a private offering of more than 47.1 million shares of common stock and 114 thousand shares of Series B convertible preferred stock. Old Dominion also announced its intention to expand and extend the offering in order to raise up to an additional $10 million in new capital.
Net proceeds from the offering will be used to strengthen Old Dominion's capital base, while assuring the bank continues to exceed regulatory levels required for well-capitalized status as it executes its strategy for accelerating growth in Northern Virginia and further enhancing its presence in its established Charlottesville market. The additional capital will also be directed toward expanding lending, as well as funding deposit-gathering efforts and general corporate purposes.
"Fortifying our capital position assures that we can effectively execute on a growth strategy that builds on our solid foundation in Charlottesville while leveraging growth opportunities in the prosperous Northern Virginia market," said President and Chief Executive Officer Mark S. Merrill. "The fact that virtually all this new capital was raised from investors who are entrepreneurs, business and community leaders living and working right here in the Washington, D.C. metro area further reinforces our vision for growing Old Dominion's regional presence and market share. We were pleased to see very strong investor demand for the offering and the opportunity for local shareholder ownership to participate in the upside we see for Old Dominion."
Old Dominion opened its Fairfax County office in McLean as part the bank's strategy for driving significant growth in Northern Virginia, particularly among small and mid-sized business customers, while maintaining a strong presence in the Charlottesville area. The bank plans to open and staff additional full-service branches in downtown Charlottesville and Northern Virginia, where plans also include building a team of experienced commercial lending leaders. Old Dominion also expects to leverage its significant customer, investor and board relationships in Northern Virginia's growing Asian-American community, which represented 19.5 percent of Fairfax County's population last year, according to the U.S. Census Bureau.
In addition, the bank recently executed a seamless leadership transition with Merrill being promoted to president, chief executive officer and director, based in the bank's executive offices in McLean.
"With the talented board of directors we assembled less than three years ago, our recent appointment of Mark as CEO, and this important infusion of capital from local Washington-area investors, we're realizing our vision for positioning Old Dominion to thrive and grow well into the future," said bank Chairman Wesley Yuan. "We believe we are putting in place the right leadership at the board and management level, as well as the financial resources and exceptional talent needed to effectively execute on a growth strategy that we believe will benefit shareholders, allow Old Dominion to grow its market presence and workforce, enhance our services and offerings to existing and new customers, and give back to our local communities."
Old Dominion's common equity private placement is believed to be one of the largest disclosed publicly by a U.S. bank in 2016 and the largest common stock offering announced by any Virginia depository institution this year, according to a review of data from SNL Financial. Old Dominion's legal advisor on the private offering was BuckleySandler LLP.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security nor shall there be any sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Old Dominion National Bank
Old Dominion is an independent, locally-owned and managed bank headquartered in Virginia with executive and loan production offices in Northern Virginia, as well as two full-service offices in the Charlottesville area. The bank has approximately $55 million in assets and offers a full range of commercial and consumer financial services in the communities it serves. Please visit the bank online at ODNBonline.com.
Forward Looking Statements
Certain statements in this press release, including statements regarding the anticipated development and expansion of the Bank's business, and the intent, belief or current expectations of the Bank, its directors or its officers, may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include the words "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would" and "could." These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the forward-looking statements, including the following: the strength of the United States economy in general and the strength of the local economies in which the Bank conducts operations; fluctuations in interest rates and in real estate values; monetary and fiscal policies of the Board of Governors of the Federal Reserve System and the U.S. Government and other governmental initiatives affecting the financial services industry; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Bank's ability to access cost-effective funding; the timely development of and acceptance of the Bank's new products and services and the perceived overall value of these products and services by customers, including the features, pricing and quality compared to competitors' products and services; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Bank's market areas; legislative or regulatory changes that adversely affect the Bank's business; results of examinations of the Bank and its subsidiaries by their regulators, including the possibility that such regulators may, among other things, take regulatory enforcement action or require the Bank's to increase its reserves for loan losses or to write-down assets; the impact of technological changes; and the Bank's success at managing the risks involved in the foregoing. Any forward-looking statements are based upon management's beliefs and assumptions at the time they are made. The Bank undertakes no obligation to publicly update or revise any forward-looking statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed might not occur, and you should not put undue reliance on any forward-looking statements.
Old Dominion National Bank
Mark S. Merrill
President and Chief Executive Officer
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SOURCE Old Dominion National Bank