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## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

## BLUE RIDGE BANKSHARES, EVC. 

December 31,2012 

## Note 4. Loans Receivable and Related Allowance for Loan Losses (Continued) 

Loans held for sale consists ofthe Bank’s commitment to purchase up to $15,000,000 in residential mortgage loan fundings originated primarily in Virginia and North Carolina by another financial institution. The Bank reviews loan documentation for each specific mortgage prior to funding to ensure it conforms to the terms of the agreement. The mortgages funded through this program must have already obtained a purchase commitment (takeout) from another fmancial institution as part of the conditions of the Bank’s fiinding. The Bank earns Prime less .50% on a daily floating rate plus additional loan fees on all loans held in this category. The balance of loans held for sale was $10,792,727 and $9,609,881 at December 31,2012 and 2011, respectively. 

The Bank is not committed to lend additional fimds to borrowers whose loans are considered impaired or whose loans have been modified. 

The Bank had a loan with a balance of approximately $897,000 and $953,000 at December 31, 2012 and 2011 that was involved in bankmptcy litigation. The loan was for the benefit of a municipality. Funds advanced for the loan were held in the custody of the company that declared bankmptcy, resulting in the municipality not taking in its direct possession the full note amount. The municipality has continued to make payments on the note and it was current at December 31, 2012 and 2011. 

## Note 5. Bank Premises and Equipment 

Bank premises and equipment are summarized as follows: 

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Depreciation expense for 2012 and 2011 was $222,101 and $223,000, respectively. 

## Note 6. Time Deposits 

The aggregate amounts of certificates of deposit, with a minimum denomination of $100,000 were $52,269,000 and $41,248,000 at December 31,2012 and 2011, respectively. 

