Virginia Business Bank Reaches Minimum in Offering – $15.6 Million Committed in 90 Days Validates Support of Commercial Bank
Richmond, Virginia (August 10, 2005) - Virginia Business Bank (“in organization”), a bank being organized to the meet lending and service needs of small and mid-sized businesses in Central Virginia, has over $15.6 million in commitments for start-up capital, as of today.
The bank has collected over $10 million in cash and has over $1.9 million in additional subscriptions, as well as $3.5 million in commitments in process. This goal was met in 90 days since the May 9, 2005 public announcement of its intent to start a new bank.
No other start-up bank in the Greater Richmond area has raised over $15 million in its initial offering. Additionally, Virginia Business Bank has attracted more than 200 shareholders and continues to seek local investors.
“We are very excited with the attention that has been generated after actively marketing the bank's stock for only 12 weeks,” says Merlin A. Henkel, president and chief executive officer of Virginia Business Bank. “This shows that the Richmond business and investor community believes in our business model - a focused, non-traditional commercial bank. We expect this bank to be a great success in operation and an investment opportunity for our shareholders.”
Pending approval from state and FDIC officials, when it opens in early 2006, Virginia Business Bank will focus on commercial and private investor 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 will be the only Richmond area bank dedicated solely to serving this target market.
Virginia Business Bank intends to offer commercial clients advantages over both smaller retail banks, through greater lending capacity, and over large, full-service banks through overall personal service, responsiveness and flexibility in its lending.
“Our ability to exceed our fundraising goal is a direct result of the dedicated, concentrated effort of our organizers and management team, who bring substantial banking experience to this new venture,” notes Henkel, who also is former president and CEO of Regency Bank in Richmond and more recently was regional president of Resource Bank, a subsidiary of Fulton Financial. Thomas L. Hotchkiss, executive vice president of Virginia Business Bank, is a former executive with BB&T and Signet Bank in Richmond.
Virginia Business Bank plans to be a state charted institution. While primarily a commercial focused bank, VBB also will offer consumer products to its clients, including personal credit card accounts and lines of credit. Deposit products will include checking and savings accounts, money-market accounts, certificates of deposit, as well as cash management services. The bank will be a member of the Federal Deposit Insurance Corporation (FDIC). For more information, please call (804) 523-4400 or visit www.vabusinessbank.com.
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