Blue Ridge Bankshares has update on fintech, mortgages

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.

Blue Ridge said the lower results reflected $9.4 million of fair value adjustments tied to equity investments in certain fintechs and a $3.6 million decline in income from its mortgage division. 

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.