#United States #Richmond #mortgage banking #Blue Ridge Bankshares #Monarch Mortgage

Blue Ridge Bankshares, Inc. to Exit Mortgage Banking

On March 19, 2025, Blue Ridge Bankshares, Inc., a publicly traded company on NYSE American (BRBS), announced a significant maneuver to divest from its mortgage banking division. This strategic decision is aimed at refocusing efforts on community banking and enhancing operational efficiency within its primary geographical regions.

Blue Ridge Bank, National Association, which operates under the branding of Monarch Mortgage, established a definitive agreement to sell specific assets of its mortgage division to an unrelated third-party mortgage company. Monarch Mortgage has been involved in providing various mortgage banking services, including the origination and processing of residential loans predominantly for the secondary market.

The transaction is anticipated to close by the end of the first quarter, pending customary closing conditions being met. In the interim, Monarch Mortgage will continue to service existing obligations, ensuring that loans currently in process will be managed towards closure and funding based on standard business operations.

G. William Beale, the President and CEO of Blue Ridge Bankshares, emphasized the strategic reasoning behind this decision, stating, "The exit from the mortgage banking segment represents a calculated choice to concentrate on our strengths in community banking within our established footprints. The current interest rate landscape necessitates substantial investment to achieve the scale required for meaningful profitability, which is not aligned with our short-term focus."

Beale expressed optimism for the Monarch Mortgage team’s future as they transition to the new ownership and expressed confidence in their success in this next chapter.

About the Company

Blue Ridge Bankshares, Inc., through its subsidiaries, provides a diverse array of financial services, encompassing both retail and commercial banking segments. The firm also offers investment and wealth management services alongside administering various corporate and personal trusts, including estate planning services.

For inquiries or additional information, interested parties can visit www.mybrb.com.

Future Outlook

While Blue Ridge Bankshares continues to draw its focus towards core banking operations, this decision marks a pivotal shift in its overall business strategy. As the market fluctuates, the company remains committed to adapting its practices for sustainable growth despite the dynamic financial environment.

This development aligns with ongoing trends among financial institutions that prioritize agility and focus amidst increasing competition and evolving market demands. Stakeholders will be watching closely for how this strategic pivot will impact the company's performance in upcoming financial quarters.

In conclusion, the decision to exit from mortgage banking signifies a broader trend seen across the banking sector, where institutions are recalibrating their functions to meet customer needs more effectively and adapt to market changes. The shifting focus may open avenues for enhanced profitability and community engagement as Blue Ridge Bankshares continues to navigate the complexities of the financial landscape.