The Bank Slate


Blue Ridge in Va. has 2Q loss due to specialty finance loans

Blue Ridge Bankshares in Charlottesville, Va., reported a quarterly loss that reflected issues with a group of specialty finance loans.

The $3.2 billion-asset company said in a press release that it lost $19.5 million in the second quarter.

The results reflected a higher loan-loss provision and reversal of interest income tied to $58.1 million of loans placed on nonaccrual status during the quarter.

The loans, sourced by a former lender, were “deemed to be not in keeping with our desired risk profile,” Billy Beale, the company’s president and CEO, said in the release.

“I don’t believe this asset quality matter is pervasive within our loan portfolio,” he added. “Excluding these loans, measures of asset quality were generally stable as compared to the prior quarter.”

Blue Ridge has faced several challenges and changes in recent months. It reached a written agreement with the Office of the Comptroller of the Currency last year requiring it to enhance oversight of fintech partnerships.

Beale was recently tapped to lead the company following the resignation of predecessor Brian Plum. Blue Ridge also announced it would forgo paying a dividend for its common stock.

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