Old Dominion National Bank in McLean, Va., has raised $20 million through a private stock offering.
The $55 million-asset bank said it sold 47.1 million shares of common stock and 114,000 shares of Series B convertible preferred stock to private investors. It plans to expand the offering to raise additional new capital of up to $10 million.
Net proceeds from the offering will be used to strengthen the bank's capital base, expand lending, fund deposit-gathering efforts and for general corporate purposes.
"Fortifying our capital position assures that we can effectively execute on a growth strategy that builds on our solid foundation in Charlottesville while leveraging growth opportunities in the prosperous northern Virginia market," Mark Merrill, Old Dominion's president and CEO, said in a press release Monday.
The bank also announced plans that include opening more branches in Charlottesville and northern Virginia and building a team of commercial lenders.
Last month Old Dominion hired Stephanie Lykins-Harvey, formerly of Cardinal Bank in McLean, as director of retail banking to oversee its branch network in northern Virginia and the Charlottesville region.
