RICHMOND — The State Corporation Commission (SCC) has
closed Richmond-based Virginia Business Bank. The SCC’s Bureau of Financial Institutions
and the Federal Deposit Insurance Corporation (FDIC) took control of the bank at
the close of business Friday. The FDIC has been named receiver of the institution.
The bank has one Richmond office location.
Through an agreement with the FDIC, Virginia Business Bank is being acquired by
Xenith Bank of Richmond. All Virginia Business Bank deposit accounts have been transferred
to Xenith Bank and will be available during normal business hours. There will not
be any loss exposure to bank depositors. Xenith Bank is a state-chartered institution
that was formed in January 2003.
The SCC acted pursuant to Virginia banking law (Section 6.2-913) that authorizes
the Commission to take charge of the books, assets and affairs of, and close a bank
if a bank is found to be insolvent or if deemed necessary for the protection of
the public interest. The SCC petitioned the Circuit Court of the City of Richmond
to have the FDIC appointed receiver of the bank.
Virginia Business Bank, located at 9020 Stony Point Parkway (Suite 225) in Richmond,
has held a state banking charter since February 10, 2006. The last Virginia state-chartered
bank to be closed by the SCC occurred in December 1992.
Virginia Commissioner of Financial Institutions E. Joseph Face, Jr., reminds depositors
that deposits of all Virginia banks are insured by the FDIC up to $250,000. Principal
and interest on insured accounts are fully insured by the FDIC, up to the $250,000
limit. Special rules apply to accounts held in trust status and for joint accounts
that may further expand deposit coverage. Additional information is available on
the website of the FDIC at www.fdic.gov.
The FDIC has established a website and toll-free phone number to answer questions
from depositors, creditors, and other interested parties regarding the receivership
of Virginia Business Bank. The website is
http://www.fdic.gov/bank/individual/failed/vbb.html. The toll free phone number is 1-800-837-0215.
Case number BFI-2011-00208
Order Closing the Bank