Virginia Heritage Bank Announces Closing Of Common Stock Offering

Virginia Heritage Bank (OTCBB: VGBK), announced today the closing of its underwritten public offering of 1,450,000 shares of its common stock at a price to the public of $14.25 per share, for aggregate gross proceeds of approximately $20.7 million. The net proceeds to the Bank after deducting the underwriting discount and estimated offering expenses are expected to be approximately $19.1 million. The Bank expects to use the net proceeds of the offering for general corporate purposes, including the funding of organic loan growth, investment in securities and the potential pursuit of strategic acquisition opportunities.

Sandler O’Neill + Partners, L.P. served as the sole book-running manager for the offering. Patton Boggs LLP served as legal counsel to the Bank. LeClairRyan served as legal counsel to the underwriter.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any offer or sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale of securities would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. Any offers, solicitations of offers to buy, or sales of securities may be made only by means of the final offering circular, copies of which may be obtained from Sandler O’Neill + Partners, L.P. at 1251 Avenue of the Americas, 6 th Floor, New York, New York 10020, (866) 805-4128.

The securities are not deposits and are neither insured nor approved by the Federal Deposit Insurance Corporation or any other bank regulatory agency. The securities are being offered pursuant to an exemption from registration under the Securities Act of 1933 provided by Section 3(a)(2) of such Act.

About Virginia Heritage Bank

Virginia Heritage Bank is a commercial bank incorporated in and chartered by the Commonwealth of Virginia. The Bank is a member of the Federal Reserve System and its deposits are insured by the Federal Deposit Insurance Corporation. The Bank is headquartered in Tysons Corner, Virginia and has five full service offices in Fairfax City, Chantilly, Gainesville, Tysons Corner and Dulles, Virginia. The Bank also has a mortgage division located in Chantilly, Virginia.

Forward Looking Statements:

Certain statements contained in this press release may be deemed to be forward-looking statements within the Private Securities Litigation Reform Act of 1995, and the Bank intends that such forward-looking statements be subject to the safe harbor created thereby. Such forward-looking statements include, but are not limited to, statements regarding the contemplated public offering and the anticipated use of proceeds of the offering. The Bank cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained herein. Such factors include: (a) possible changes in general market conditions or in the market price of the Bank’s common stock; (b) changes in the market for the Bank’s products and services; and (c) other risks as described in the offering circular referred to above. You should not place undue reliance on forward-looking statements and the Bank undertakes no obligation to update any such statements to reflect circumstances or events that occur after the dates on which the forward-looking statements are made.

Copyright Business Wire 2010