BRBS 8-K
Blue Ridge Bankshares, Inc. (BRBS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On January 30, 2025, Blue Ridge Bankshares, Inc. issued a press release announcing its financial results for the fourth quarter ended December 31, 2024. A copy of the press release is being furnished as Exhibit 99.1 to this report and is incorporated by reference into this Item 2.02.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibit is being furnished pursuant to Item 2.02 above.
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Exhibit No. |
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Description |
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99.1 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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BLUE RIDGE BANKSHARES, INC. |
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Date: |
January 30, 2025 |
By: |
/s/ Judy C. Gavant |
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Judy C. Gavant |
Exhibit 99.1
Blue Ridge Bankshares, Inc. Announces 2024 Fourth Quarter and Full Year Results
Completes exit from banking-as-a-service depository operations
Performance reflects sequential improvement in deposit growth, noninterest expense reduction, and nonperforming asset reduction
Regulatory remediation efforts on track
RICHMOND, VA, January 30, 2025 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the “Company”) (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association (“Blue Ridge Bank” or the “Bank”) and BRB Financial Group, Inc., today announced financial results for the quarter and year ended December 31, 2024.
For the quarter ended December 31, 2024, the Company reported a net loss of $2.0 million, or $0.03 per diluted common share, compared to net income of $0.9 million, or $0.01 per diluted common share, for the quarter ended September 30, 2024, and a net loss of $5.8 million, or $0.30 per diluted common share, for the fourth quarter of 2023. Net loss for the fourth quarter of 2024 and net income for the third quarter of 2024 included after-tax losses of $2.0 million and $0.8 million, respectively, on the sale of mortgage servicing rights (“MSRs”), while net income for the third quarter of 2024 included a $6.6 million after-tax recovery of credit losses on a specialty finance loan sold during the quarter. The net loss for the fourth quarter of 2023 included a $1.3 million after-tax loss on the sale of an equity investment in a fintech company. After-tax regulatory remediation expenses for the fourth and third quarters of 2024 were $0.2 million and $0.3 million, respectively, compared to $2.5 million for the fourth quarter of 2023.
For the year ended December 31, 2024, the Company reported a net loss of $15.4 million, or $0.31 per diluted common share, compared to a net loss of $51.8 million, or $2.73 per diluted common share, for the year ended December 31, 2023. The net loss in 2023 included an after-tax goodwill impairment charge of $26.8 million and a $4.7 million after-tax settlement reserve for the previously disclosed Employee Stock Ownership Plan ("ESOP") litigation assumed in the 2019 acquisition of Virginia Community Bankshares, Inc. After-tax regulatory remediation expenses for 2024 and 2023 were $3.6 million and $8.1 million, respectively.
A Message From Blue Ridge Bankshares, Inc. President and CEO, G. William “Billy” Beale:
“As I complete my first full fiscal year with Blue Ridge, I am pleased with the progress in our journey to restoring Blue Ridge Bank to its core strengths as a community-focused banking institution.
“As I noted after the third quarter of 2024, we are focused on three vital areas: our remediation work in response to the directives of our primary regulator; our initiatives to improve operational efficiency across the organization; and positioning Blue Ridge for future growth.
“I am confident that Blue Ridge Bank today is a stronger, healthier financial institution than as the year began. During 2024, we have fundamentally repositioned the balance sheet to align with our strategy of returning to our roots as a community-focused bank. With our stronger balance sheet, including increased capital levels, we are positioned for measured growth. Blue Ridge operates in strong commercial and consumer markets, with favorable demographic trends, which we believe offer us great opportunity. We are highly focused on bringing our profitability to
acceptable levels. It will take several quarters to rebuild our earning-asset base and to right-size our cost structure; I believe we are making progress on both fronts. As we finish a successful 2024, I continue to be grateful for the support of this leadership team, our employees, our board of directors, and importantly, our shareholders.”
Q4 2024 Highlights
(Comparisons for Fourth Quarter 2024 are relative to Third Quarter 2024 unless otherwise noted.)
Net Income:
Asset Quality:
Capital:
Net Interest Income / Net Interest Margin:
Noninterest Income / Noninterest Expense:
Income Tax:
Balance Sheet:
Income Statement:
Net interest income was $19.1 million for both the fourth and third quarters of 2024, compared to $21.8 million for the fourth quarter of 2023. The decline in the third and fourth quarters of 2024 compared to the fourth quarter of 2023 was primarily attributable to lower interest and fee income on loans due to lower average balances. This decline was partially offset by lower average balances and rates paid on interest-bearing demand accounts and lower average balances of wholesale funding. The majority of fintech BaaS deposits were in interest-bearing demand accounts.
Average balances of interest-earning assets decreased $59.3 million to $2.74 billion in the fourth quarter of 2024, relative to the prior quarter, and decreased $242.2 million from the year-ago period. Relative to the prior quarter and the year-ago period, the decrease reflected primarily lower average balances of loans held for investment. The yield on average loans held for investment was 5.83% and 5.80% for the fourth and third quarters of 2024, respectively, compared to 5.99% for the fourth quarter of 2023.
Average balances of interest-bearing liabilities decreased $99.6 million to $2.02 billion in the fourth quarter of 2024, relative to the prior quarter, and decreased $341.0 million from the year-ago quarter period.
Cost of funds was 3.01% for the fourth quarter of 2024, compared to 3.09% for the third quarter of 2024, and 2.91% for the fourth quarter of 2023, while cost of deposits was 2.86%, 2.91%, and 2.73%, for the same respective periods. Higher market interest rates in 2024 led to the increase in cost of funds from the year-ago period, whereas the decrease in the fourth quarter compared to the third quarter was primarily attributable to lower average balances of borrowings and fintech-related deposits. Cost of deposits, excluding wholesale deposits, was 1.55% for the quarter compared to 1.71% for the prior quarter, and 2.50% for the year-ago period. The declines from the comparative periods were primarily due to lower average balances of higher cost fintech-related deposits.
Net interest margin was 2.80% for the fourth quarter of 2024 compared to 2.74% in the prior quarter and 2.92% in the fourth quarter of 2023. The increase in net interest margin compared to the prior quarter primarily reflects lower funding costs, while the decrease compared to the year-ago period primarily reflects higher funding costs.
The Company recorded a recovery of credit losses of $1.0 million for the fourth quarter of 2024, compared to a recovery of credit losses of $6.2 million for the third quarter of 2024, and a provision for credit losses of $2.8 million for the fourth quarter of 2023. The recovery of credit losses in the fourth quarter of 2024 reflects lower reserve needs due to loan portfolio balance reductions, partially offset by charge-offs of the non-guaranteed portion of certain GGL and certain purchased loans, whereas the recovery of credit losses in the third quarter of 2024 was primarily attributable to an $8.4 million recovery from the sale of the previously mentioned specialty finance loan and lower reserve needs due to loan portfolio balance reductions. These lower reserve needs were partially offset by higher specific reserves for certain purchased loans. Provision for the fourth quarter of 2023 primarily resulted from charge-offs and reserve needs for a select group of purchased consumer loans, partially offset by a recovery of the allowance for credit losses on unfunded commitments due to lower available balances of commercial and construction lines of credit.
Noninterest income was $2.8 million for the fourth quarter of 2024, compared to $2.7 million for the third quarter of 2024, and $4.1 million for the fourth quarter of 2023. Both the fourth and third quarters of 2024 included losses on the sales of MSRs of $2.6 million and $1.0 million, respectively, while fair value adjustments on MSRs before their sale were a positive $0.8 million and a negative $2.9 million for the respective periods. Excluding these items, noninterest income in the fourth quarter of 2024 was $2.0 million lower than the third quarter of 2024 due to lower residential mortgage banking income, primarily driven by lower servicing income, and reduced income from fintech lending partnerships. The decline in noninterest income for the fourth quarter of 2024 relative to the year-ago period was primarily attributable to the $2.6 million loss on sale of MSRs and a decrease in other noninterest income of $1.4 million, primarily due to lower servicing income, partially offset by a $2.8 million positive fair market value adjustment on MSRs. Fintech lending partnerships contributed $4.1 million of noninterest income in 2024,
of which $2.1 million was contributed by a partner that exited the Bank during the fourth quarter of 2024.
Noninterest expense was $25.6 million for the fourth quarter of 2024, compared to $26.5 million for the third quarter of 2024, and $30.6 million for the fourth quarter of 2023. Noninterest expense decreased $0.8 million from the prior quarter and $4.9 million from the year-ago period. The decrease relative to the third quarter of 2024 was primarily driven by lower salaries and employee benefits and lower consulting expense, partially offset by higher audit fees. Lower consulting expense reflects a reduction in the use of outside contracting services, while higher audit fees were for internal audits in the BSA/AML and employee benefit plan areas. The decrease relative to the year-ago period was primarily due to higher expenses in the year-ago period for regulatory remediation, other contractual services, and other noninterest expenses.
Balance Sheet:
Loans held for investment were $2.11 billion at December 31, 2024, compared to $2.18 billion at September 30, 2024, and $2.43 billion at December 31, 2023. These declines are attributable to the Company’s plan to purposefully and selectively reduce assets to partially meet the liquidity needs of the fintech BaaS depository operations wind down.
Total deposits were $2.18 billion at December 31, 2024, a decrease of $167.1 million and $386.6 million for the quarter and the year-to-date periods, respectively. Fintech-related deposits declined $166.1 million in the fourth quarter of 2024, while fintech BaaS deposits decreased $63.4 million in the quarter. Year-to-date fintech BaaS deposits decreased $370.7 million. Excluding fintech-related and brokered deposits, total deposits increased $28.1 million from the prior quarter end and $171.6 million from year end 2023.
The Company previously reported that it was prohibited from the acceptance, renewal, or rollover of brokered deposits, as a result of the Consent Order. In early third quarter of 2024, the Bank received approval from the FDIC allowing the Bank to accept, renew, or rollover brokered deposits for a six-month period of time and in the amount of maturities during this period. In late fourth quarter of 2024, the Bank received a six-month extension of this approval. Brokered deposits at December 31, 2024 were $402.5 million, a decline of $28.0 million from September 30, 2024, and a decline of $112.7 million from December 31, 2023. The Company had secured brokered deposits to enhance liquidity during the fintech BaaS wind down.
Noninterest-bearing deposits represented 20.8%, 19.6%, and 19.7% of total deposits at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Excluding brokered deposits, fintech-related balances represented 22.7% of total deposits at December 31, 2023.
The held for investment loan-to-deposit ratio was 96.9% at December 31, 2024, compared to 92.9% at September 30, 2024, and 94.7% at December 31, 2023.
About Blue Ridge Bankshares, Inc.:
Blue Ridge Bankshares, Inc. is the holding company for Blue Ridge Bank and BRB Financial Group, Inc. The Company, through its subsidiaries and affiliates, provides a wide range of financial services including retail and commercial banking, and retail mortgage lending. The Company also provides investment and wealth management services and management services for personal and corporate trusts, including estate planning and trust administration. Visit www.mybrb.com for more information.
Reclassifications:
Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current period presentations. The reclassifications had no effect on net income (loss), net income (loss) per share, or stockholders’ equity, as previously reported.
Non-GAAP Financial Measures:
The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles (“GAAP”) and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible assets, tangible common equity, tangible book value per common share, and tangible common equity to tangible total assets to supplement the evaluation of the Company’s financial condition and performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the financial condition and capital position of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included at the end of this release.
Forward-Looking Statements:
This release of the Company contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phrases of similar meaning. The Company cautions that the forward-looking statements are based largely on its expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements.
The following factors, among others, could cause the Company’s financial performance to differ materially from that expressed in such forward-looking statements:
The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in filings the Company makes from time to time with the SEC. Any one of these risks or factors could have a material adverse impact on the Company’s results of operations or financial condition, or cause the Company’s actual results, performance or achievements to differ materially from those expressed in, or implied by, forward-looking information and statements contained in this release. Moreover, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on its forward-looking statements. Therefore, the Company cautions not to place undue reliance on its forward-looking information and statements, which speak only as of the date of this release. The Company does not undertake to,
and will not, update or revise these forward-looking statements after the date hereof, whether as a result of new information, future events, or otherwise.
1 Non-GAAP financial measure. Further information can be found at the end of this press release.
Blue Ridge Bankshares, Inc. |
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Consolidated Balance Sheets |
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(Dollars in thousands, except share data) |
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(unaudited) |
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December 31, 2023 (1) |
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Assets |
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Cash and due from banks |
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$ |
173,533 |
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$ |
110,491 |
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Restricted cash |
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2,459 |
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10,660 |
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Federal funds sold |
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838 |
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4,451 |
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Securities available for sale, at fair value |
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312,035 |
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321,081 |
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Restricted equity investments |
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19,275 |
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18,621 |
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Other equity investments |
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4,834 |
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12,905 |
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Other investments |
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19,405 |
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29,467 |
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Loans held for sale |
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30,976 |
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46,337 |
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Loans held for investment, net of deferred fees and costs |
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2,111,797 |
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2,430,947 |
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Less: allowance for credit losses |
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(23,023 |
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(35,893 |
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Loans held for investment, net |
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2,088,774 |
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2,395,054 |
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Accrued interest receivable |
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12,537 |
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14,967 |
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Premises and equipment, net |
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21,394 |
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22,348 |
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Right-of-use lease asset |
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7,962 |
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8,738 |
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Bank owned life insurance |
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1,083 |
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48,453 |
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Other intangible assets |
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3,859 |
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5,382 |
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Mortgage servicing rights, net |
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386 |
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27,114 |
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Deferred tax asset, net |
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27,312 |
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21,556 |
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Other assets |
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10,598 |
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19,929 |
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Total assets |
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$ |
2,737,260 |
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$ |
3,117,554 |
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Liabilities and Stockholders’ Equity |
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Deposits: |
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Noninterest-bearing demand |
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$ |
452,690 |
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$ |
506,248 |
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Interest-bearing demand and money market deposits |
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598,875 |
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1,049,536 |
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Savings |
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100,857 |
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117,923 |
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Time deposits |
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1,027,020 |
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892,325 |
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Total deposits |
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2,179,442 |
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2,566,032 |
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FHLB borrowings |
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150,000 |
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210,000 |
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FRB borrowings |
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— |
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65,000 |
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Subordinated notes, net |
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39,789 |
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39,855 |
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Lease liability |
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8,613 |
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9,619 |
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Other liabilities |
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31,628 |
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41,059 |
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Total liabilities |
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2,409,472 |
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2,931,565 |
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Commitments and contingencies |
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Stockholders’ Equity: |
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Common stock, no par value; 150,000,000 and 50,000,000 shares authorized at December 31, 2024 and December 31, 2023, respectively; and 84,972,610 and 19,198,379 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively |
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322,791 |
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197,636 |
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Additional paid-in capital |
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29,687 |
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252 |
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Retained earnings |
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17,772 |
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33,157 |
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Accumulated other comprehensive loss, net of tax |
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(42,462 |
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(45,056 |
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Total stockholders’ equity |
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327,788 |
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185,989 |
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Total liabilities and stockholders’ equity |
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$ |
2,737,260 |
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$ |
3,117,554 |
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(1) Derived from audited December 31, 2023 Consolidated Financial Statements. |
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Blue Ridge Bankshares, Inc. |
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Consolidated Statements of Income (unaudited) |
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For the Three Months Ended |
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(Dollars in thousands, except per common share data) |
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December 31, 2024 |
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September 30, 2024 |
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December 31, 2023 |
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Interest income: |
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Interest and fees on loans |
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$ |
33,050 |
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$ |
34,747 |
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$ |
38,933 |
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Interest on securities, deposit accounts, and federal funds sold |
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4,882 |
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4,478 |
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4,227 |
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Total interest income |
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37,932 |
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39,225 |
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43,160 |
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Interest expense: |
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Interest on deposits |
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16,329 |
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16,984 |
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17,899 |
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Interest on subordinated notes |
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736 |
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566 |
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543 |
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Interest on FHLB and FRB borrowings |
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1,742 |
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2,574 |
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2,955 |
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Total interest expense |
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18,807 |
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20,124 |
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21,397 |
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Net interest income |
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19,125 |
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19,101 |
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21,763 |
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(Recovery of) provision for credit losses - loans |
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(500 |
) |
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(6,000 |
) |
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3,600 |
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Recovery of credit losses - unfunded commitments |
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(500 |
) |
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(200 |
) |
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(830 |
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Total (recovery of) provision for credit losses |
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(1,000 |
) |
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(6,200 |
) |
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2,770 |
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Net interest income after provision for credit losses |
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20,125 |
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25,301 |
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18,993 |
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Noninterest income: |
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Fair value adjustments of other equity investments |
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232 |
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160 |
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167 |
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Residential mortgage banking income |
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1,698 |
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2,939 |
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2,617 |
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Mortgage servicing rights |
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795 |
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(2,915 |
) |
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(2,026 |
) |
Loss on sale of mortgage servicing rights |
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(2,596 |
) |
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(1,011 |
) |
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— |
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Gain on sale of government guaranteed loans |
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— |
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— |
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905 |
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Wealth and trust management |
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561 |
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730 |
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483 |
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Service charges on deposit accounts |
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402 |
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376 |
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323 |
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Increase in cash surrender value of BOLI |
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58 |
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127 |
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310 |
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Bank and purchase card, net |
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615 |
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690 |
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446 |
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Loss on sale of other equity investments |
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— |
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— |
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(1,636 |
) |
Other |
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1,049 |
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1,602 |
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2,475 |
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Total noninterest income |
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2,814 |
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2,698 |
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4,064 |
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Noninterest expense: |
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Salaries and employee benefits |
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13,246 |
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13,938 |
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13,711 |
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Occupancy and equipment |
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1,357 |
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1,394 |
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1,549 |
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Technology and communications |
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2,645 |
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2,767 |
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2,426 |
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Legal and regulatory filings |
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626 |
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614 |
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(286 |
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Advertising and marketing |
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231 |
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222 |
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184 |
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Audit fees |
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1,071 |
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498 |
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1,381 |
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FDIC insurance |
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1,139 |
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1,130 |
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1,762 |
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Intangible amortization |
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255 |
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265 |
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297 |
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Other contractual services |
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1,276 |
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1,634 |
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2,065 |
|
Other taxes and assessments |
|
|
747 |
|
|
|
759 |
|
|
|
809 |
|
Regulatory remediation |
|
|
273 |
|
|
|
357 |
|
|
|
3,155 |
|
Other |
|
|
2,774 |
|
|
|
2,876 |
|
|
|
3,487 |
|
Total noninterest expense |
|
|
25,640 |
|
|
|
26,454 |
|
|
|
30,540 |
|
(Loss) income before income taxes |
|
|
(2,701 |
) |
|
|
1,545 |
|
|
|
(7,483 |
) |
Income tax (benefit) expense |
|
|
(698 |
) |
|
|
599 |
|
|
|
(1,724 |
) |
Net (loss) income |
|
$ |
(2,003 |
) |
|
$ |
946 |
|
|
$ |
(5,759 |
) |
Basic and diluted (loss) earnings per common share |
|
$ |
(0.03 |
) |
|
$ |
0.01 |
|
|
$ |
(0.30 |
) |
Blue Ridge Bankshares, Inc. |
|
|
|
|
|
|
||
Consolidated Statements of Income (unaudited) |
|
|
|
|
|
|
||
|
|
For the Twelve Months Ended |
|
|||||
(Dollars in thousands, except per common share data) |
|
December 31, 2024 |
|
|
December 31, 2023 |
|
||
Interest income: |
|
|
|
|
|
|
||
Interest and fees on loans |
|
$ |
142,339 |
|
|
$ |
152,942 |
|
Interest on securities, deposit accounts, and federal funds sold |
|
|
17,981 |
|
|
|
16,053 |
|
Total interest income |
|
|
160,320 |
|
|
|
168,995 |
|
Interest expense: |
|
|
|
|
|
|
||
Interest on deposits |
|
|
69,070 |
|
|
|
59,969 |
|
Interest on subordinated notes |
|
|
2,414 |
|
|
|
2,209 |
|
Interest on FHLB and FRB borrowings |
|
|
10,175 |
|
|
|
13,776 |
|
Total interest expense |
|
|
81,659 |
|
|
|
75,954 |
|
Net interest income |
|
|
78,661 |
|
|
|
93,041 |
|
(Recovery of) provision for credit losses - loans |
|
|
(2,900 |
) |
|
|
24,703 |
|
Recovery of credit losses - unfunded commitments |
|
|
(2,200 |
) |
|
|
(2,380 |
) |
Total (recovery of) provision for credit losses |
|
|
(5,100 |
) |
|
|
22,323 |
|
Net interest income after provision for credit losses |
|
|
83,761 |
|
|
|
70,718 |
|
Noninterest income: |
|
|
|
|
|
|
||
Fair value adjustments of other equity investments |
|
|
(8,152 |
) |
|
|
(110 |
) |
Residential mortgage banking income |
|
|
10,391 |
|
|
|
11,878 |
|
Mortgage servicing rights |
|
|
629 |
|
|
|
(1,878 |
) |
Loss on sale of mortgage servicing rights |
|
|
(3,607 |
) |
|
|
— |
|
Gain on sale of government guaranteed loans |
|
|
102 |
|
|
|
5,704 |
|
Wealth and trust management |
|
|
2,434 |
|
|
|
1,839 |
|
Service charges on deposit accounts |
|
|
1,526 |
|
|
|
1,257 |
|
Increase in cash surrender value of BOLI |
|
|
855 |
|
|
|
1,195 |
|
Bank and purchase card, net |
|
|
2,060 |
|
|
|
1,703 |
|
Loss on sale of securities available for sale |
|
|
(67 |
) |
|
|
(649 |
) |
Loss on sale of other equity investments |
|
|
— |
|
|
|
(1,636 |
) |
Other |
|
|
7,402 |
|
|
|
9,072 |
|
Total noninterest income |
|
|
13,573 |
|
|
|
28,375 |
|
Noninterest expense: |
|
|
|
|
|
|
||
Salaries and employee benefits |
|
|
58,161 |
|
|
|
58,158 |
|
Occupancy and equipment |
|
|
5,577 |
|
|
|
6,506 |
|
Technology and communications |
|
|
10,024 |
|
|
|
10,096 |
|
Legal and regulatory filings |
|
|
2,050 |
|
|
|
4,613 |
|
Advertising and marketing |
|
|
933 |
|
|
|
1,157 |
|
Audit fees |
|
|
3,019 |
|
|
|
2,821 |
|
FDIC insurance |
|
|
5,463 |
|
|
|
5,059 |
|
Intangible amortization |
|
|
1,083 |
|
|
|
1,295 |
|
Other contractual services |
|
|
6,576 |
|
|
|
7,753 |
|
Other taxes and assessments |
|
|
3,037 |
|
|
|
3,216 |
|
Regulatory remediation |
|
|
4,671 |
|
|
|
10,459 |
|
Goodwill impairment |
|
|
— |
|
|
|
26,826 |
|
ESOP litigation |
|
|
— |
|
|
|
6,000 |
|
Other |
|
|
13,247 |
|
|
|
13,978 |
|
Total noninterest expense |
|
|
113,841 |
|
|
|
157,937 |
|
Loss before income taxes |
|
|
(16,507 |
) |
|
|
(58,844 |
) |
Income tax benefit |
|
|
(1,122 |
) |
|
|
(7,071 |
) |
Net loss |
|
$ |
(15,385 |
) |
|
$ |
(51,773 |
) |
Basic and diluted loss per common share |
|
$ |
(0.31 |
) |
|
$ |
(2.73 |
) |
Blue Ridge Bankshares, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Quarter Summary of Selected Financial Data (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
As of and for the Three Months Ended |
|
|||||||||||||||||
(Dollars and shares in thousands, except per common share data) |
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|||||
Income Statement Data: |
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|||||
Interest income |
|
$ |
37,932 |
|
|
$ |
39,225 |
|
|
$ |
40,631 |
|
|
$ |
42,531 |
|
|
$ |
43,160 |
|
Interest expense |
|
|
18,807 |
|
|
|
20,124 |
|
|
|
20,546 |
|
|
|
22,182 |
|
|
|
21,397 |
|
Net interest income |
|
|
19,125 |
|
|
|
19,101 |
|
|
|
20,085 |
|
|
|
20,349 |
|
|
|
21,763 |
|
(Recovery of) provision for credit losses |
|
|
(1,000 |
) |
|
|
(6,200 |
) |
|
|
3,100 |
|
|
|
(1,000 |
) |
|
|
2,770 |
|
Net interest income after provision for credit losses |
|
|
20,125 |
|
|
|
25,301 |
|
|
|
16,985 |
|
|
|
21,349 |
|
|
|
18,993 |
|
Noninterest income |
|
|
2,814 |
|
|
|
2,698 |
|
|
|
272 |
|
|
|
7,788 |
|
|
|
4,064 |
|
Noninterest expenses |
|
|
25,640 |
|
|
|
26,454 |
|
|
|
29,308 |
|
|
|
32,437 |
|
|
|
30,540 |
|
(Loss) income before income taxes |
|
|
(2,701 |
) |
|
|
1,545 |
|
|
|
(12,051 |
) |
|
|
(3,300 |
) |
|
|
(7,483 |
) |
Income tax (benefit) expense |
|
|
(698 |
) |
|
|
599 |
|
|
|
(616 |
) |
|
|
(407 |
) |
|
|
(1,724 |
) |
Net (loss) income |
|
|
(2,003 |
) |
|
|
946 |
|
|
|
(11,435 |
) |
|
|
(2,893 |
) |
|
|
(5,759 |
) |
Per Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Loss) earnings per common share - basic and diluted |
|
$ |
(0.03 |
) |
|
$ |
0.01 |
|
|
$ |
(0.47 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.30 |
) |
Book value per common share |
|
|
3.86 |
|
|
|
4.30 |
|
|
|
4.15 |
|
|
|
9.24 |
|
|
|
9.69 |
|
Tangible book value per common share - Non-GAAP |
|
|
3.82 |
|
|
|
4.25 |
|
|
|
4.10 |
|
|
|
9.04 |
|
|
|
9.47 |
|
Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total assets |
|
$ |
2,737,260 |
|
|
$ |
2,944,691 |
|
|
$ |
2,933,072 |
|
|
$ |
3,076,187 |
|
|
$ |
3,117,554 |
|
Average assets |
|
|
2,863,014 |
|
|
|
2,967,774 |
|
|
|
3,084,643 |
|
|
|
3,164,932 |
|
|
|
3,165,886 |
|
Average interest-earning assets |
|
|
2,736,834 |
|
|
|
2,796,116 |
|
|
|
2,886,186 |
|
|
|
2,966,491 |
|
|
|
2,979,065 |
|
Loans held for investment |
|
|
2,111,797 |
|
|
|
2,180,413 |
|
|
|
2,259,279 |
|
|
|
2,394,089 |
|
|
|
2,430,947 |
|
Allowance for credit losses |
|
|
23,023 |
|
|
|
25,453 |
|
|
|
28,036 |
|
|
|
35,025 |
|
|
|
35,893 |
|
Purchase accounting adjustments (discounts) on acquired loans |
|
|
3,996 |
|
|
|
4,162 |
|
|
|
4,408 |
|
|
|
4,873 |
|
|
|
5,117 |
|
Loans held for sale |
|
|
30,976 |
|
|
|
22,082 |
|
|
|
54,377 |
|
|
|
34,902 |
|
|
|
46,337 |
|
Securities available for sale, at fair value |
|
|
312,035 |
|
|
|
314,784 |
|
|
|
307,427 |
|
|
|
314,394 |
|
|
|
321,081 |
|
Noninterest-bearing demand deposits |
|
|
452,690 |
|
|
|
459,793 |
|
|
|
470,128 |
|
|
|
496,375 |
|
|
|
506,248 |
|
Fintech Banking-as-a-Service ("BaaS") deposits |
|
|
233 |
|
|
|
63,674 |
|
|
|
172,456 |
|
|
|
272,973 |
|
|
|
370,968 |
|
Total deposits |
|
|
2,179,442 |
|
|
|
2,346,492 |
|
|
|
2,325,839 |
|
|
|
2,465,776 |
|
|
|
2,566,032 |
|
Subordinated notes, net |
|
|
39,789 |
|
|
|
39,806 |
|
|
|
39,822 |
|
|
|
39,838 |
|
|
|
39,855 |
|
FHLB and FRB advances |
|
|
150,000 |
|
|
|
190,000 |
|
|
|
202,900 |
|
|
|
345,000 |
|
|
|
275,000 |
|
Average interest-bearing liabilities |
|
|
2,021,814 |
|
|
|
2,121,402 |
|
|
|
2,228,071 |
|
|
|
2,411,683 |
|
|
|
2,362,774 |
|
Total stockholders' equity |
|
|
327,788 |
|
|
|
336,347 |
|
|
|
325,614 |
|
|
|
180,906 |
|
|
|
185,989 |
|
Average stockholders' equity |
|
|
330,343 |
|
|
|
326,880 |
|
|
|
318,042 |
|
|
|
183,901 |
|
|
|
223,840 |
|
Weighted average common shares outstanding - basic |
|
|
78,881 |
|
|
|
73,366 |
|
|
|
24,477 |
|
|
|
19,178 |
|
|
|
19,033 |
|
Weighted average common shares outstanding - diluted |
|
|
78,881 |
|
|
|
87,086 |
|
|
|
24,477 |
|
|
|
19,178 |
|
|
|
19,033 |
|
Financial Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on average assets (1) |
|
|
-0.28 |
% |
|
|
0.13 |
% |
|
|
-1.48 |
% |
|
|
-0.37 |
% |
|
|
-0.73 |
% |
Return on average equity (1) |
|
|
-2.43 |
% |
|
|
1.16 |
% |
|
|
-14.38 |
% |
|
|
-6.29 |
% |
|
|
-10.29 |
% |
Total loan to deposit ratio |
|
|
98.3 |
% |
|
|
93.9 |
% |
|
|
99.5 |
% |
|
|
98.5 |
% |
|
|
96.5 |
% |
Held for investment loan-to-deposit ratio |
|
|
96.9 |
% |
|
|
92.9 |
% |
|
|
97.1 |
% |
|
|
97.1 |
% |
|
|
94.7 |
% |
Fintech BaaS deposits to total deposits ratio |
|
|
0.0 |
% |
|
|
2.7 |
% |
|
|
7.4 |
% |
|
|
11.1 |
% |
|
|
14.5 |
% |
Net interest margin (1) |
|
|
2.80 |
% |
|
|
2.74 |
% |
|
|
2.79 |
% |
|
|
2.75 |
% |
|
|
2.92 |
% |
Cost of deposits (1) |
|
|
2.86 |
% |
|
|
2.91 |
% |
|
|
2.84 |
% |
|
|
2.84 |
% |
|
|
2.73 |
% |
Cost of funds (1) |
|
|
3.01 |
% |
|
|
3.09 |
% |
|
|
3.02 |
% |
|
|
3.03 |
% |
|
|
2.91 |
% |
Efficiency ratio |
|
|
116.9 |
% |
|
|
121.4 |
% |
|
|
144.0 |
% |
|
|
115.3 |
% |
|
|
118.2 |
% |
Regulatory remediation expenses |
|
|
273 |
|
|
|
357 |
|
|
|
1,397 |
|
|
|
2,644 |
|
|
|
3,155 |
|
Capital and Asset Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average stockholders' equity to average assets |
|
|
11.5 |
% |
|
|
11.0 |
% |
|
|
10.3 |
% |
|
|
5.8 |
% |
|
|
7.1 |
% |
Allowance for credit losses to loans held for investment |
|
|
1.09 |
% |
|
|
1.17 |
% |
|
|
1.24 |
% |
|
|
1.46 |
% |
|
|
1.48 |
% |
Ratio of net charge-offs (recoveries) to average loans outstanding (1) |
|
|
0.36 |
% |
|
|
-0.61 |
% |
|
|
1.81 |
% |
|
|
0.14 |
% |
|
|
2.84 |
% |
Nonperforming loans to total assets |
|
|
0.93 |
% |
|
|
1.09 |
% |
|
|
1.40 |
% |
|
|
1.73 |
% |
|
|
2.02 |
% |
Nonperforming assets to total assets |
|
|
0.94 |
% |
|
|
1.09 |
% |
|
|
1.40 |
% |
|
|
1.73 |
% |
|
|
2.02 |
% |
Nonperforming loans to total loans |
|
|
1.19 |
% |
|
|
1.46 |
% |
|
|
1.78 |
% |
|
|
2.19 |
% |
|
|
2.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reconciliation of Non-GAAP Financial Measures (unaudited): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tangible Common Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total stockholders' equity |
|
$ |
327,788 |
|
|
$ |
336,347 |
|
|
$ |
325,614 |
|
|
$ |
180,906 |
|
|
$ |
185,989 |
|
Less: preferred stock (including additional paid-in capital) |
|
|
— |
|
|
|
(20,605 |
) |
|
|
(20,605 |
) |
|
|
— |
|
|
|
— |
|
Common stockholders' equity |
|
$ |
327,788 |
|
|
$ |
315,742 |
|
|
$ |
305,009 |
|
|
$ |
180,906 |
|
|
$ |
185,989 |
|
Less: Goodwill and other intangibles, net of deferred tax liability (2) |
|
|
(2,998 |
) |
|
|
(3,281 |
) |
|
|
(3,552 |
) |
|
|
(3,913 |
) |
|
|
(4,179 |
) |
Tangible common equity (Non-GAAP) |
|
$ |
324,790 |
|
|
$ |
312,461 |
|
|
$ |
301,456 |
|
|
$ |
176,993 |
|
|
$ |
181,810 |
|
Total common shares outstanding |
|
|
84,973 |
|
|
|
73,474 |
|
|
|
73,504 |
|
|
|
19,584 |
|
|
|
19,198 |
|
Book value per common share |
|
$ |
3.86 |
|
|
$ |
4.30 |
|
|
$ |
4.15 |
|
|
$ |
9.24 |
|
|
$ |
9.69 |
|
Tangible book value per common share (Non-GAAP) |
|
|
3.82 |
|
|
|
4.25 |
|
|
|
4.10 |
|
|
|
9.04 |
|
|
|
9.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tangible Common Equity to Tangible Total Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total assets |
|
$ |
2,737,260 |
|
|
$ |
2,944,691 |
|
|
$ |
2,933,072 |
|
|
$ |
3,076,187 |
|
|
$ |
3,117,554 |
|
Less: Goodwill and other intangibles, net of deferred tax liability (2) |
|
|
(2,998 |
) |
|
|
(3,281 |
) |
|
|
(3,552 |
) |
|
|
(3,913 |
) |
|
|
(4,179 |
) |
Tangible total assets (Non-GAAP) |
|
$ |
2,734,262 |
|
|
$ |
2,941,410 |
|
|
$ |
2,929,520 |
|
|
$ |
3,072,274 |
|
|
$ |
3,113,375 |
|
Tangible common equity (Non-GAAP) |
|
$ |
324,790 |
|
|
$ |
312,461 |
|
|
$ |
301,456 |
|
|
$ |
176,993 |
|
|
$ |
181,810 |
|
Tangible common equity to tangible total assets (Non-GAAP) |
|
|
11.9 |
% |
|
|
10.6 |
% |
|
|
10.3 |
% |
|
|
5.8 |
% |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(1) Annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(2) Excludes mortgage servicing rights. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||