Community bank investor Kenneth Lehman has agreed to buy a majority stake in the parent company of Affinity Bank in Atlanta.
The $271 million-asset ABB Financial Group said in a press release Friday that it will sell 2.5 million to 3.25 million shares of stock to Lehman for $4 each. That would value his investment at $10 million to $13 million.
Lehman would gain a stake in ABB Financial ranging from 58% to 65%. ABB Financial had about 1.8 million shares outstanding on June 30. The deal is expected to close in the fourth quarter.
“The board and management are excited about partnering with Mr. Lehman to position Affinity Bank as one of the premier commercial banking franchises in Atlanta,” Ed Cooney, ABB Financial’s president, said in the release.
Affinity, founded in 2002, specializes in making commercial loans to the dental industry.
Lehman is a former lawyer who buys big stakes in community banks. In a recent deal where Lehman is an investor in both parties, Delmar Bancorp in Salisbury, Md., agreed to buy Liberty Bell Bank in Marlton, N.J.
Banks Street Partners and Miller & Martin advised ABB Financial.