The Bank Slate


Blue Ridge Bankshares has update on fintech, mortgages

Blue Ridge Bankshares in Charlottesville, Va., reported lower quarterly earnings that reflected adjustments to the value of its fintech investments and a sharp decline in mortgage volume. 

The $2.8 billion-asset company’s second-quarter net income fell by 94% from a quarter earlier, to $1.1 million.

Blue Ridge said the lower results reflected $9.4 million of fair value adjustments tied to equity investments in certain fintechs and a $3.6 million decline in income from its mortgage division. 

The company did gain some traction in fintech, with revenue tied to those relationships increasing by 38% from a quarter earlier, to $1.8 million. 

Deposits tied to fintechs more than doubled from the end of 2021, to $395 million. Loans associated with fintech rose by 6% in the first half of this year, to $25.6 million.   

The fintech relationships generated $55.9 million of assets under management. 

Blue Ridge said quarterly mortgage volumes declined by 22% from a quarter earlier, to $117.8 million, largely reflecting lower demand following interest rate hikes. 

The company noted that it has been cutting mortgage personnel since the fourth quarter. The cuts will translate into $2 million of lower annual noninterest expenses, beginning in the second half of this year.

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