Blue Ridge Bankshares, Inc., the holding company of Blue Ridge Bank, National Association and BRB Financial Group, Inc., announced that Blue Ridge Bank has entered into a definitive asset purchase and sale agreement to sell certain assets of its mortgage division operating as Monarch Mortgage to an unrelated third-party mortgage company. Monarch Mortgage provides mortgage banking services, including the origination and processing of residential mortgage loans primarily for sale into the secondary market. The transaction is expected to close by the end of the first quarter, subject to customary closing conditions.
Under the terms of the asset purchase and sale agreement, Blue Ridge Bank, doing business as Monarch Mortgage, will continue to fulfill its obligations to prospective borrowers with respect to loans in process and will manage such loans toward closing and funding in the ordinary course of business.
G. William Beale, President and CEO of the Company, stated “The decision to exit our mortgage banking division was an additional step in our strategy to refocus our efforts on community banking in our primary geographical footprint. In the current interest rate environment, this line of business required additional investment to reach the scale needed to be a meaningful contributor to our profitability, which is not our near-term focus. I am pleased that the Monarch Mortgage team has a wonderful opportunity with the acquiring company. I wish them a smooth transition and much success.”
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