Blue Ridge Bankshares announced that the Office of the Comptroller of the Currency has terminated the Consent Order that had been in effect since January 24, 2024. The order had imposed a leverage ratio of 10% and a total capital ratio of 13%, higher than the well‑capitalized benchmark, and required the bank to strengthen controls over third‑party relationships, Bank Secrecy Act (BSA)/Anti‑Money Laundering (AML) procedures, and information technology risk management.
The Consent Order was issued after the OCC identified systemic weaknesses in Blue Ridge’s BSA/AML program, including inadequate independent testing, insufficient staffing, and control failures linked to fintech third‑party partners. To satisfy the order, the bank increased its capital buffers, implemented a comprehensive remediation plan, and overhauled its risk‑management framework. Management reported that the bank’s leverage ratio now stands at 10.2% and its total capital ratio at 13.5%, comfortably above the thresholds set by the OCC.
CEO G. William Beale said the relief is a testament to the team’s hard work and expertise. He noted that the bank’s focus on community banking has driven the decision to exit its fintech BaaS and mortgage‑banking divisions, allowing it to concentrate resources on deposit growth and local lending. The termination removes regulatory constraints that previously limited the bank’s ability to expand deposit and loan portfolios, thereby enhancing operational flexibility.
In addition to the regulatory relief, Blue Ridge announced a special cash dividend of $0.25 per share payable on November 21, 2025, and a $15 million share‑repurchase program. These actions signal confidence in the bank’s cash‑flow position and provide shareholders with additional value while the bank continues to invest in its core community‑banking operations.
The market has shown positive momentum in the six months leading up to the announcement, reflecting investor optimism about the bank’s strategic shift and regulatory progress. While some analysts remain cautious about the bank’s profitability trajectory, the termination of the Consent Order removes a significant compliance burden and positions Blue Ridge to pursue growth opportunities in its key markets.
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