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.
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.