Virginia Business Bank opens doors to Richmond business community

Bank targets companies and private investors underserved by larger banks

Richmond, Virginia (April 17, 2006) – Virginia Business Bank, a new bank dedicated to serving the lending and service needs of small- and mid-sized businesses, is now open effective April 3, 2006.

Located at 9020 Stony Point Parkway in Richmond, Virginia Business Bank is targeting customers whose borrowing needs for real estate development and investment, business expansion, private investment, and business acquisition are in the $1 million to $5 million range. Virginia Business Bank is the only Richmond area bank dedicated solely to serving this target market.

“Virginia Business Bank is pleased to be the first bank to address the needs of a group of businesses that has been underserved by the current banking industry in Central Virginia,” says Merlin A. Henkel, president and chief executive officer of Virginia Business Bank. “We look forward to building relationships with that important segment through our own special commitment of talent and resources.”

With no offices other that the bank’s headquarters location, Virginia Business Bank provides many of its basic services through a network of courier, online, and ATM services. Central to its relationships with its customers, however, will be face-to-face meetings with clients not only in the bank’s headquarters office, but also in the client’s office or other place of business.

In addition to Henkel, Virginia Business Bank’s senior management includes Thomas L. Hotchkiss, executive vice president, and Barbara T. “Brad” Kallus, senior vice president and chief financial officer.

“Our experienced team of executives shares a thorough understanding of the special concerns and opportunities of small- to medium-sized businesses not just in general, but also in our specific marketplace,” observes Henkel. “The group that organized this bank includes many people who themselves identified with the need for an institution like ours for their own companies. They spent countless hours turning a concept into a reality. In addition to our organizers, we have to thank those initial investors who had the confidence to support our non-traditional business model.”

In May 2005, the bank’s 40 organizers and a group of investors announced their intent to form Virginia Business Bank. On September 30, 2005, the bank closed its initial equity raise with $16.8 million in capital from almost 350 investors–exceeding the minimum equity amount it had determined it would need to begin business. In early 2006, the bank received approval from the State Corporation Commission’s Bureau of Financial Institutions of its application to become a State-Chartered Bank. Virginia Business Bank also received approval from the FDIC to be included in that agency’s deposit insurance program and has become a member of the Federal Reserve Bank of Richmond.

Virginia Business Bank, while focused primarily on serving commercial customers, also offers it customers a wide range of personal services including checking and savings accounts, credit card accounts, home equity loans and lines of credit. For more information, please call (804) 523-4400.

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VIRGINIA BUSINESS BANK MEMBER, FDIC

© 2006 VIRGINIA BUSINESS BANK