Virginia Business Bank withdraws public stock offering

Unable to raise $20 million by selling stock, Virginia Business Bank withdrew the public offering and is scratching plans to become The Corner Bank and move to the Eastern Shore.

The Richmond-based bank, which has focused on commercial lending, has been hobbled by mounting loan losses and is operating under oversight agreements with federal and state bank regulators. Its board had hoped to rebrand the bank, recapitalize and shift its focus to community banking in Richmond, Hampton Roads and on the Eastern Shore.

Also, Scott C. Harvard will not become its CEO. Any subscription funds, which were held in escrow by SunTrust Bank, will be returned to investors.