The Office of the Comptroller of the Currency has raised “certain regulatory concerns” about Blue Ridge Bankshares that are expected to delay its merger with FVCBankcorp, the two Virginia companies warned.
Blue Ridge has started an “initiative” to address issues cited by the OCC about its national bank unit, according to a joint news release by the companies. The merger is now expected to close in the second or third quarter of next year. When the merger of equals to create a $5 billion-asset company was announced in July, the deal was expected to be completed in the fourth quarter of this year or in early 2022.
“While we have additional work to do, we believe the OCC’s concerns are ones that we can solve in a timely fashion, and do not materially impact the strategic rationale of the merger,” Brian Plum, CEO of Charlottesville-based Blue Ridge, said in the joint release Thursday.
The companies are considering some alternatives for their regulatory applications and shareholder meetings but did not provide specifics.
“We strongly believe that this transformational partnership remains strategically and financially attractive,” David Pijor, chairman and CEO of Fairfax-based FVCB, said in the release.
A spokesperson for the OCC did not immediately comment.
No official details were given about the nature of the concerns raised by the OCC.
But in April, a coalition of consumer advocacy groups led by the Student Borrower Protection Center
Blue Ridge and other issuers of these agreements are skirting certain consumer protections by claiming their products are not forms of credit, the letter said.
