Blue Ridge Bankshares Inc., the holding company for Blue Ridge Bank and BRB Financial Group Inc., on Thursday announced that Blue Ridge Bank has entered into a definitive asset purchase and sale agreement to sell certain assets of its mortgage division.
A press release from Blue Ridge confirmed that the division, currently operating as Monarch Mortgage, is being sold to an unrelated third-party mortgage company. Monarch Mortgage provides mortgage banking services, including the origination and processing of residential mortgages primarily for sale on the secondary market.
Blue Ridge confirmed that 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, Monarch Mortgage will continue to fulfill its obligations to prospective borrowers about loans in progress, including guiding these loans toward closing and funding.
“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,” G. William Beale, president and CEO of Blue Ridge Bankshares, said in a statement.
“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.”
