Central Virginia Bankshares Inc. in Powhatan has called off its rights and stock offering amid concerns about market conditions.
The parent company of Central Virginia Bank said Friday that it has decided not to pursue the capital-raising effort at this time "on the advice of their investment bankers" and will seek to reinstate the offering when market conditions improve.
The board of directors of Central Virginia Bankshares, which has $449 million of assets, approved the offering in June in connection with a written agreement with its regulators that was effective June 29. The offering was planned for September.
Central Virginia Bank was adequately capitalized with a total risk-based capital ratio of 8.33% as of June 30.
Also, the company was notified July 1 that it was out of compliance with the Nasdaq's requirement to maintain a market value of at least $5 million of its publicly held shares.
Central Virginia Bankshares has until Dec. 28 to comply with the rule or it risks being delisted by Nasdaq.
Central Virginia's share price has fallen 27.5% since then, closing at $1 a share Friday.
Central Virginia's chairman, Jim Napier, said in a press release Friday explaining its decision to call off the offering that though there was shareholder interest, the time was not right largely because of the equity markets and the current pricing of bank stocks.
"We will continue to keep an eye on the markets and reassess the situation as appropriate," he said.
