Virginia Commerce Bancorp Inc. in Arlington is adding $10 million of capital to its war chest.
The $2.8 billion-asset company announced Friday that it had signed agreements with several institutional investors for a direct placement of $10 million of common equity. The shares are to be sold at $5.25 a share, a 7% discount to Thursday's closing price.
The investors are also expected to be issued two warrants that, if exercised, would add $11.4 million more of capital. The warrants would carry an exercise price of $6 a share.
Virginia Commerce said the proceeds would be used to support internal growth and for possible acquisitions, and also could go to repay $71 million from the Troubled Asset Relief Program.
The company's bank unit was well capitalized at the end of the second quarter, with a total risk-based capital ratio of 13.38%.
