Delmarva Bancshares, Inc., (the “Company” or “Delmarva”) the bank holding company for the National Bank of Cambridge (the “Bank”), announced today that institutional investors have agreed to purchase $11 million of the Company’s common and preferred stock in a private placement. The Company plans to contribute most of this new capital to the Bank so it can sell the majority of the Bank’s problem assets and to reposition the Bank for profitable growth in the future.
“Today marks an important final step in the revitalization of National Bank of Cambridge, which began in 2010 upon my joining the Bank,” said Kim Liddell, Chairman and Chief Executive Officer of Delmarva. “We believe this new capital will enable us to execute our strategic plan, which includes significantly reducing non-performing assets, resolving the Bank’s Formal Agreement with the OCC, and positioning the Bank to take advantage of market opportunities on the Eastern Shore. We are excited about our ability to better serve our customers with an enhanced capital base and the additional prospects that lie ahead following the completion of this offering. The Board and Management Team continue to be grateful for the loyalty, support and patience of our existing shareholders as we prepare for a more profitable future.”