Blue Ridge Bankshares in Charlottesville, Va., said an issue raised by the Office of the Comptroller of the Currency will delay the planned completion of its purchase of FVCBankcorp in Fairfax, Va.
The $2.7 billion-asset Blue Ridge did not provide details on the issue, though it said the “regulatory concerns … could impact the application process and timing” of the merger.
Blue Ridge, which originally planned to close the deal in the first quarter, now expects to complete the $306.6 million acquisition in the second or third quarter.
Blue Ridge said in the release that it had already started an effort intended to fully address the OCC’s concerns.
“While we have additional work to do, we believe the OCC’s concerns are ones that we can solve in a timely fashion, and do not materially impact the strategic rationale of the merger,” Brian Plum, Blue Ridge’s president and CEO, said in the release. “We are considering various alternatives to proceed with regulatory applications and shareholder meetings, and to close the merger as expediently as possible.”
“We strongly believe that this transformational partnership remains strategically and financially attractive,” said David Pijor, the $2 billion-asset FVCB’s chairman and CEO.
“For all of the reasons that we’ve discussed previously, this is a highly compelling transaction for both companies, and we are committed to seeing it through to completion,” Pijor added. “We also know how committed Blue Ridge Bank’s management team is to resolving any concerns raised by its regulators.”