Millennium Bank N.A., a unit of Millennium Bankshares Corp., is selling its entire portfolio of held-for-sale and repurchased mortgage loans and will take a $10.8 million pre-tax charge on the sale, Millennium Bankshares said Friday.
The unit is selling $31.3 million in loans for $13.6 million plus accrued interest to Beltway Capital LLC, according to a filing with the Securities and Exchange Commission. Millenium Bank had a valuation allowance of $6.9 million against the loans at Dec. 31. The portfolio contained $11.9 million of delinquent loans and $13 million of loans in various stages of foreclosure, according to the filing.
The charge on the sale will come to $7.1 million net of taxes, the Reston, Va., company said.
Chief Executive Richard Linhart said the portfolio sale is the last of three steps to refocus the unit on its core Northern Virginia markets and complete its exit from its mortgage-banking activities.
The other steps were to sell the unit's Richmond branches and sell between $100 million and $110 million in securities to fund the branch sale and de-leverage the balance sheet.
