Virginia National Bankshares (VABK) in Charlottesville, Va., is facing pressure from an activist investor to consider selling itself.
Swift Run Capital Management in Charlottesville said in a regulatory filing Friday that the $513 million-asset company has “built an attractive banking franchise located in a stable, growing marketplace... that is potentially desirable to many bank merger partners."
The investment fund, which owns 9% of Virginia National's stock, said in its filing that it had been contacted by an unnamed suitor, adding that it believes "there are many others who may have an interest."
Swift Run also said it believes the company has strong enough earnings to support an annual dividend of 80 cents to $1 a share. "In addition, earnings from the new wealth management business could be used to pay shareholder an additional, variable dividend," the filing said.
The investment firm also stated that it would like Virginia National to consider repurchasing its common stock.
A call to Virginia National was not immediately returned.
Virginia National's earnings rose 25% in 2013 compared to a year earlier, to $6.9 million. The bank formed a holding company in December.