Primis Financial in McLean, Va., acquired a 19% stake in Panacea Financial Holdings as part of the fintech’s recent Series B financing round.
The $3.9 billion-asset company said in a press release that it was part of the funding round, where Valar Ventures was the only institutional investor.
Primis, which has a partnership agreement with the fintech and is its primary bank partner, said the implied fair market value of its investment was $20 million on Dec. 31.
Panacea plans to use proceeds from the raise to invest in its brand and product offerings that include upgraded technology platforms.
The capital raise “is a tremendous vote of confidence in what we have been building over the past three years and will allow the Panacea team to keep building out their brand and capabilities while taking their business to the next level,” Dennis Zember Jr., Primis’ president and CEO, said in the release.
“Panacea’s material improvement in profitability … combined with this infusion of capital immediately improves the level and reliability of earnings that Primis Bank will enjoy from the relationship and should be very accretive to future operations,” Zember added.