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One of the most common reasons bankers and analysts have given for the slowdown in mergers and acquisitions is what they call sellers' unrealistic expectations for the price they can get.
April 12
First Virginia Community Bank in Fairfax has raised $6.7 million in capital from old and new investors and intends to use the proceeds to continue its rapid growth.
The bank said in a news release Monday that two-thirds of the bank's top 25 investors bought shares in the latest offering. It also said that the offering attracted "dozens" of new investors. Since its initial capitalization in 2007, First Virginia has now raised $13.2 million of capital in two separate offerings.
"We very much appreciate our shareholders' confidence in our future and we look forward to developing strong and lasting relationships with them," Chairman and Chief Executive David Pijor said in Monday's news release. "Our shareholders' support and commitment to [First Virginia] will help us ensure our continued growth and our ability to meet our clients' needs."
Founded with $23 million of capital, First Virginia is the fastest-growing bank in the Washington, D.C., area, according to data compiled by the Washington Business Journal. Between Sept. 30, 2010 and Sept. 30, 2011, its total assets rose by nearly 40%, to $250 million, while deposits increased nearly 50%, to $218 million.
The bank is the second Pijor has founded in Virginia. He founded James Monroe Bank in Arlington in 1998 and sold it eight years later to Mercantile Bankshares Inc. of Baltimore for more than 3.6 times book value. Mercantile was later acquired by PNC Financial Services Group Inc.
