A two-year old Richmond bank is the first of its local peers to tap into a government small-business lending program.
Virginia Business Bank
Bankrupt socialite Patricia Kluge’s financial collapse has spread to Richmond.
Virginia Business Bank failed Friday and was seized and shut down by regulators, making it the third Virginia bank to fail since the recession began. Its assets were purchased by another local bank that’s gone on a buying spree lately.
Richmond remained home to two of the lowest rated banks and one of the lowest rated credit unions in Virginia through the first quarter, according to ratings released last week.
It’s official – there is now a handful of struggling local banks under regulatory written agreements.
A struggling local bank has been given 90 days to raise capital or find an acquirer or merger partner.
Richmond is home to three of the four lowest-rated banks in the state, according to ratings released last week.
Two local banks were among the lowest-rated financial institutions in the state, according to bank and credit union ratings released last week. But both banks are trying hard to fix the situation ASAP.
But the ambitious plan requires the bank to raise $20 million and the lifting of a regulatory agreement. The bank seeks to pick up retail customers on the Eastern Shore.
Scott Harvard, a Richmond native and veteran of the Virginia banking industry, has returned to his hometown to help a bank that is trying to reinvent itself.