Blue Ridge Savings Bank closed by NC regulators
10/17/2011
Blue Ridge Savings Bank in Asheville was closed by state regulators on Friday,
October 14. The institution had $161.2 million in assets as of June 30 and was rated E-
(“Very Weak”) by Weiss at the time of failure. It was first identified as “Weak” in
December 2007. The institution reported a loss of more than $2.5 million for the six
months ending June 30 and had below-FDIC-mandated Tier 1 (5%) and risk-based capital (6%)
ratios of 1.33% and 2.95%, respectively. Nonperforming loans represented almost 12% of its
loan portfolio with charge-offs of over 6%.
Bank of North Carolina in High Point, with assets of $2.1 billion and a Weiss
Financial Strength Rating of D- (“Weak”), assumed the deposits of Blue Ridge Savings Bank.
Bank of North Carolina has a Tier 1 capital ratio of 7.61% and a risk-based capital ratio
of 12.82%, both exceeding FDIC mandates but below industry averages of 10.65% and 19.17%,
respectively. In addition, nonperforming loans make up less than 3% of its total loan
portfolio, better than the industry average of 3.35%.