TYSONS CORNER, Va., May 17, 2018 /PRNewswire/ -- Old Dominion National Bank successfully completed an oversubscribed private offering of common equity, which was upsized from $30 million to raise an aggregate of $38.7 million in new capital, largely from about 320 accredited individual investors in the Washington, D.C. metropolitan area and Pennsylvania.
"The continued support of our growing base of shareholders in the D.C. metro area and Pennsylvania will enable Old Dominion to continue executing on its growth strategy, as we seek to develop this company into a high-performing regional financial institution," said President and Chief Executive Officer Mark S. Merrill. "We have shown that we can effectively and efficiently deploy capital for the benefit of our company, shareholders and customers. Over the last two years, we have grown loans organically by more than 225% to $117 million, added new, high-performing branches in our D.C. metro and legacy Charlottesville markets, and most importantly invested in talented bankers who are introducing our true community bank to a growing number of customers. We view the success of our recent capital raise as an endorsement to our expanding leadership team and a validation of our growth strategy, and we intend to continue executing on it in a prudent and responsible manner."
This is the Virginia bank's second successful private placement of common equity since December 2016, when Old Dominion announced it raised $30 million from more than 175 accredited individual investors, largely in the D.C. metro and Pennsylvania. The 2016 capital raise was also upsized, from $20 million, due to investor demand. Through the direct efforts of its directors and executives, without the use of an underwriter or placement fees, the company has raised a combined total of nearly $69 million in two stock offerings over the last 18 months.
Total expenses from this latest offering were less than $100 thousand and the $38.6 million in net proceeds from the bank's latest offering will be used to support Old Dominion's lending, investment activities and its growth in existing markets and expansion into new ones.
"Old Dominion is differentiating itself as a high-touch, relationship building community bank that provides exceptional service and access to state-of-the art technology to our consumer and business banking customers. With the proceeds of this capital raise, we will be able to focus on expanding our customer base and market share throughout our footprint," said bank Chairman Wesley Yuan. "We have a highly experienced and connected Board of Directors, whose 12 members bring valuable guidance, wide ranging expertise and exceptional business development opportunities. This, combined with our strong executive management and experienced, customer-focused team, leaves Old Dominion very well-positioned to continue its growth in the markets we serve, including the metro Washington D.C. market where our executive offices are located."
Old Dominion's legal advisor on its private offerings was Buckley Sandler 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 community bank with executive headquarters in Tysons Corner, Va., with approximately $200 million in assets. Old Dominion's Tysons Corner full-service branch serves a growing number of customers across the Washington metropolitan area, and the bank's three full-service locations in the Charlottesville area serve Albemarle County and Central Virginia. Old Dominion 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 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
SOURCE Old Dominion National Bank