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Xenith Bank Assumes All Deposits And Acquires Assets Of Virginia Business Bank, Richmond, Virginia, Under Purchase And Assumption Agreement With FDIC

Stocks in this article: XBKS

RICHMOND, Va., July 29, 2011 /PRNewswire/ -- Xenith Bankshares, Inc. (NASDAQ: XBKS), parent company to Xenith Bank, today announced that Xenith Bank has assumed all deposits and acquired substantially all of the assets of Virginia Business Bank, Richmond, Virginia, which was closed today by the Virginia State Corporation Commission, under a purchase and assumption agreement between Xenith Bank and  the Federal Deposit Insurance Corporation (FDIC).  The FDIC is acting as court-appointed receiver of Virginia Business Bank.  The transaction was completed without any shared-loss agreement.

Under the terms of the transaction, Xenith Bank acquires approximately $86 million in assets, including approximately $69 million in loans; and assumes $82 million in liabilities, including deposits of  approximately $73 million.

"We believe that the strong capital position we have built over the past couple of years has positioned Xenith Bank to participate in growth opportunities such as this," said T. Gaylon Layfield, III, President and Chief Executive Officer.  "This is Xenith's second acquisition since our successful capital raise in April, and while our primary focus remains organic growth, we remain interested in additional opportunities that strengthen our franchise and offer the potential for additional shareholder value creation."

"We are pleased to welcome customers of Virginia Business Bank to the Xenith Bank family.  We believe that they will benefit from being affiliated with a well-capitalized financial institution that is strategically focused on the Virginia business communities, as well as select retail markets.  Our approach to customer service involves local management and decision making, state-of-the-art technology and providing a team of experienced professionals dedicated to helping all of our customers prosper," Mr. Layfield said.

The sole branch of Virginia Business Bank will reopen on Monday, August 1 as a branch of Xenith Bank.  Depositors of Virginia Business Bank will automatically become depositors of Xenith Bank.  Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits.  This evening and over the weekend, depositors of Virginia Business Bank can access their money by writing checks or using ATM or debit cards.  Checks drawn on the bank will continue to be processed.  Loan customers should continue to make their payments as usual.

Customers of Virginia Business Bank should continue to use their existing branch until they receive notice from Xenith Bank that it has completed systems changes to allow other Xenith Bank branches to process their accounts as well.

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