Atlantic Bay Mortgage Group, L.L.C agreed to acquire Virginia Community Bank from Virginia Community Bankshares Inc. (OTCPK:VCBS) on July 25, 2017. The consideration will be paid in stock. Atlantic Bay and VCB expect to complete a $20 million offering of common stock of VCB at the time of closing. Atlantic Bay will receive merger consideration consisting of 100% stock in VCB. That will give Atlantic Bay's members approximately 60% ownership of the bank, excluding the impact of the planned common stock offering. As part of the transaction, Virginia Community Bank (VCB) will eliminate its holding company and the resulting bank will operate under the name Atlantic Bay Bank, while Atlantic Bay Mortgage Group will retain its brand. Local branches of VCB will operate under its current name and brand. There will be no loss of staff as part of the transaction. Under the terms of the agreement, Atlantic Bay's Chief Executive Officer, Brian Holland will become Chairman of the Board, and Chief Operating Officer, Stan Holland will be a member of the Board of Directors. Preston Moore, Chief Executive Officer of VCB, will remain Chief Executive Officer of the bank and will be a member of its Board of Directors. Chief Financial Officer, Tom Crowder will remain in his position. The transaction was unanimously approved by the Board of Directors of VCB and the sole manager and members of Atlantic Bay, and is expected to close pending regulatory approval in the fourth quarter of 2017. Scott M. Clark, Reid Brewer, John J Regan Jr. and Alex Bondroff of Sandler O’Neill & Partners, L.P acted as financial advisor to Virginia Community Bankshares Inc. James Stevens, Jake Lutz, Seth Winter, Mark Goldsmith, Cot Eversole, Joel Post, Constance Brewster, Michael Delgaudio of Troutman Sanders LLP acted as legal advisor to Atlantic bay Mortage Group, L.L.C. Hunton Andrews Kurth LLP acted as legal advisor to Virginia Community Bank. Atlantic Bay Mortgage Group, L.L.C cancelled the acquisition of Virginia Community Bank from Virginia Community Bankshares Inc. (OTCPK:VCBS) on August 13, 2018. Atlantic Bay Mortgage Group and Virginia Community Bank have made the mutual decision to withdraw their merger application from both the Federal Deposit Insurance Corporation and Virginia Bureau of Financial Institutions approval consideration with regards to the merger. Both companies believe it is no longer in the best interest of their organizations to continue the process.