Village Bank and Trust Financial in Midlothian, Va., has raised nearly $9 million by selling shares to existing investors.

The $433 million-asset company said in a press release Friday that it sold roughly 475,000 shares to shareholders in conjunction with a rights offering. The company sold 244,000 shares to Kenneth Lehman, who also exchanged preferred stock for another 333,000 shares.

About $5 million in proceeds will help boost capital at the bank level, William Foster, Village Bank's president and chief executive, said in the release. Another $3.5 million will remain at the company level. The exchange with Lehman, who holds stakes in a number of community banks, will reduce Village Bank's future preferred-stock dividend obligations by 60%.

Lehman's other notable investments include First Capital in Glen Allen, Va.; Delmar Bancorp in Salisbury, Md.; Marine Bank & Trust in Vero Beach, Fla.; Four Oaks Fincorp in Four Oaks, N.C.; and Liberty Bell Bank in Marlton, N.J.

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