Investor locks down majority stake in Virginia bank
Ken Lehman has bought a controlling stake in another community bank.
Lehman, a former banking lawyer who makes big investments in small banks, bought 1,785 shares of Village Bank & Trust Financial in Midlothian, Va., on June 19, paying $59,500. The purchase pushed his ownership in the $522 million-asset Village to 50.01%, the bank said in a regulatory filing.
The company said that the change in control triggered accelerated compensation, which will result in an $885,000 expense in the second quarter. However, it will also allow Village to recognize $25,000 in monthly savings for the rest of 2019 and $20,000 to $23,000 in monthly savings next year.
Lehman agreed earlier this month to buy a 40% stake in the $301 million-asset Sevier County Bancshares in Sevierville, Tenn.