Fis Closed: Virginia Business Bank, Richmond, Virginia, USA
On Friday, July 29, 2011, Virginia Business Bank, Richmond, Virginia, USA was closed by the Virginia State Corporation Commission, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
To protect the depositors, the FDIC entered into a purchase and assumption agreement with Xenith Bank, Richmond, Virginia, to assume all of the deposits of Virginia Business Bank.
The sole branch of Virginia Business Bank reopened on 1 August as a branch of Xenith Bank. Depositors of Virginia Business Bank will automatically become depositors of Xenith Bank.
As of March 31, 2011, Virginia Business Bank had approximately $95.8 million in total assets and $85.0 million in total deposits.
No premium was paid for the deposits.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $17.3 million.
Virginia Business Bank is the 59th FDIC-insured institution to fail in the nation this year, and the first in Virginia.
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