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## Note 12. Disclosures About Fair Value of Financial Instruments 

## NOTES TO THE CONSOLIDATED FEVANCIAL STATEMENTS December 31,2012 

## BLUE RIDGE BANKSHARES, EVC. 

In accordance with the requirements of U.S. GAAP, fair value disclosure estimates are being made for like kind financial instruments. Fair value estimates are based on present value of expected future cash flows, quoted market prices of similar fmancial instmments, if available, and other valuation techniques. These valuations are significantly affected by the discount rates, cash flow assumptions and risk assumptions used. Therefore, the fair value estimates may not be substantiated by comparison to independent markets and are not intended to reflect the proceeds that may be realizable in an immediate settlement ofthe financial instruments. 

U.S. GAAP excludes certain items from the disclosure requirements, and accordingly, the aggregate fair value of amounts presented do not represent the underlying value ofthe Company. Management does not have the intention to dispose of a significant portion of its financial instmments and, therefore, the unrealized gains or losses should not be interpreted as a forecast of future eamings and cash flows. 

The following table represents the estimates December 31, 2012 and 2011: of fair value of financial instmments as of 

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The following methods and assumptions are used to estimate the fair value of financial instmments: 

Cash and short term investments: The carrying amount for cash and short-term investments is a reasonable estimate of fair value. Short-term investments consist of certificates of deposit in other banks. 

Investment securities: Fair values for investment securities are based on quoted market prices, if available. If market prices are not available, quoted market prices of similar securities are used. 

