Tuesday, April 1, 2014

NewDominion Bank stock value rising

A year ago, NewDominion Bank finished a capital raise that put the Charlotte community bank back on solid footing. Bank executives say now it's started to pay off for those new stockholders.

The bank raised $10.5 million from about 260 investors, with an average investment of $40,000. Shares sold for 50 cents each, a heavy discount from the original capital raised when the bank was founded in 2004.

But NewDominion wrote shareholders this week to let them know that a third-party adviser has come in and valued the bank's common stock at 74 cents per share, a 48 percent increase.

"This valuation serves as one of many indications that we are headed in the right direction," CEO John Hipp wrote in the letter.