Virginia banking veterans from Wachovia Corp., SunTrust Banks Inc. and the defunct Signet Banking Corp. are launching Xenith Bank.

The bank, in organization, will be based in Richmond. It is expected to open late this year or in the first quarter of 2009.

Its founders expect to raise $70 million to $100 million, which includes a $35 million commitment from a Texas-based private-equity firm.

Organizers are talking to potential investors. A minimum $100,000 investment is required with shares valued at $10 each.

The six-member senior management team and eight-member board have pledged $5 million.

Virginia banking Commissioner E. Joseph Face Jr. said the amount of capital organizers hope to raise is substantial for a new bank.

Most banks in formation need at least $12 million, Face said. They also need a board of directors with a successful track record in banking and business.

Target customers for Xenith are mid-market businesses, said T. Gaylon Layfield III, one of three founding partners.

"You need that much capital if you want to be able to meet the banking needs of businesses with sales up to $250 million," Layfield said.

Layfield, who will serve as president and chief executive officer, has 23 years of banking experience. He was president and chief operating officer of Signet Banking Corp. when it was sold to First Union Corp. in late 1997.

Banks make loans, a primary source of revenue, based on the amount of capital they have. The more capital, the bigger the loan amounts.

Xenith also will provide private banking needs for business owners, executives and their families.

The bank will rely on technology and personal banking relationships, not the traditional network of branch offices.

"We will have the very best and most experienced bankers talking to customers to help them sort out their business needs," Layfield said.

Customers will be given scanners in their homes or offices that will allow them to scan deposits into the bank, Layfield said. Paper checks will be held for 30 days for safekeeping and then shredded.

Cash needs will be met through couriers or automated teller machines. Customers will be reimbursed for any ATM charges.

The plan is to open with one office in downtown Richmond and one in Tysons Corner.

"Richmond and Northern Virginia encompass about 50 percent of economic activity in Virginia," Layfield said.

The Xenith name was chosen to represent the aspirations of the founders, he said. It's a play off "zenith," meaning pinnacle, with the "x" providing a twist to make it more interesting, Layfield said.

"We thought it would play well across Virginia."
Contact Carol Hazard at (804) 775-8023 or chazard@timesdispatch.com.