VCBI Virginia Commerce Bancorp (MM)

Months of financial market turbulence, uncertain economic forecasts, and the third largest bank failure in U.S. history have unsettled many people, but consumers and institutions searching for a safe haven for their money need to look no further than Virginia Commerce Bank. Virginia Commerce Bank can offer each of its customers access up to $50 million in Federal Deposit Insurance Corporation (FDIC) insurance coverage � 500 times the standard $100,000 that most banks offer � through a service named CDARS� (pronounced �cedars,� like the trees). The FDIC has estimated that the $32 billion IndyMac Bank, which failed on July 11th, left approximately 10,000 uninsured depositors exposed. Together, these depositors held almost $1 billion in uninsured deposits. �Although Virginia Commerce Bank provides the ultimate safety and soundness in banking services, FDIC insurance provides an additional safety net,� emphasized Peter A. Converse, President and CEO of Virginia Commerce Bank, �Since the FDIC�s establishment 75 years ago, no one has lost money in an FDIC-insured account.� �With CDARS, individuals can better protect their savings, and corporations, small businesses, nonprofits and municipalities can invest their money with the lowest risk,� Mr. Converse added. Also known as the Certificate of Deposit Account Registry Service�, CDARS is a deposit placement service created by Virginia Commerce Bank�s Arlington neighbor, Promontory Interfinancial Network, LLC. VCB, one of the top participating banks with Promontory, implements CDARS through the following process: The customer makes deposits through Virginia Commerce Bank and benefits from its consistently high CD rates. The customer�s funds are divided into increments of less than $100,000 to ensure that both principal and interest are eligible for full FDIC protection. VCB arranges for the placement of funds into CDs issued by other network banks in the CDARS program. Those other network banks place deposits in the same amounts into Virginia Commerce Bank, so that deposits stay local for lending in the communities VCB serves. From the bank customer�s point of view, CDARS is one-stop shopping. The customer works with only one bank, signs only one agreement, and receives one interest rate. Also, CDARS reduces paperwork to one monthly statement and one 1099 at tax time. The American Bankers Association endorsed CDARS in 2003, explaining that CDARS benefits not only depositors but also banks and the economy. Deposits placed through CDARS meet the pass-through insurance coverage guidelines established by the FDIC. Established in 1988, Virginia Commerce Bank (Nasdaq:VCBI) is a full-service, community bank headquartered in Arlington, Virginia, with over $2.6 billion in assets. The Bank serves the Northern Virginia and Fredericksburg markets with twenty-six branches, a mortgage lending office and an investment services department. For further information about VCB�s many services and a map of convenient locations, please visit our Web site at VCBonline.com.