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The slow M&A market gives the Pennsylvania bank little choice but to digest its two acquisitions and wait for conditions to improve, CEO Reuter says.
March 1
A Virginia investor who has co-founded and sold three community banks in the past decade may buy up to a 45% share in First Capital Bancorp Inc. in Glen Allen, Va.
First Capital said Monday that it intends to offer shareholders the option to purchase up to 8.9 million units of its common stock in its bid to raise as much as $17.8 million in fresh capital. Each unit will consist of one share of common stock and a warrant to purchase half of a share for $2 per whole share.
Shareholders of record at Feb. 10 would have first dibs on the shares, but investor Kenneth R. Lehman may purchase between 350,000 and 4.9 million of the units if they do not sell out, the $541 million-asset company said.
Lehman would be eligible to purchase the units if First Capital receives subscriptions of at least $5 million, including $1 million from the bank's executives and officers. The agreement between Lehman and First Capital would limit his voting ability to no more than 45% of the outstanding shares.
First Capital said that it will use the funds raised in the stock sale to capitalize its subsidiary, First Capital Bank, and for other general corporate purposes.
Lehman, a former banking attorney in Washington, D.C., is an active investor in community banks.
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Providence was sold in 2009 to Florida Traditions Bank in Dade City, Fla.