Blue Ridge Bankshares, Inc 8-K, filed Oct 27, 2022

Blue Ridge Bankshares, Inc. (BRBS)

8-K 2022-10-27 For: 2022-10-27

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Added on April 07, 2026

About this 8-K

Blue Ridge Bankshares, Inc filed this 8-K on October 27, 2022.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Virginia	001-39165	54-1470908
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1807 Seminole Trail
Charlottesville, Virginia		22901
(Address of Principal Executive Offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	BRBS	NYSE American LLC


	Exhibit No.		Description

	99.1		Press release dated October 27, 2022.
	104		Cover Page Interactive Data File (embedded within the Inline XBRL document)


			BLUE RIDGE BANKSHARES, INC.

Date:	October 27, 2022	By:	/s/ Judy C. Gavant
			Judy C. Gavant Executive Vice President and Chief Financial Officer


Blue Ridge Bankshares, Inc.
Consolidated Statements of Income (unaudited)
	For the Three Months Ended
(Dollars in thousands except per share data)	September 30, 2022			June 30, 2022			September 30, 2021
Interest income:
Interest and fees on loans	$	30,206		$	23,787		$	22,294
Interest on taxable securities		2,337			2,129			1,317
Interest on nontaxable securities		81			89			61
Interest on deposit accounts and federal funds sold		522			238			82
Total interest income		33,146			26,243			23,754
Interest expense:
Interest on deposits		3,032			1,541			1,622
Interest on subordinated notes		570			545			644
Interest on FHLB and FRB borrowings		867			67			364
Total interest expense		4,469			2,153			2,630
Net interest income		28,677			24,090			21,124
Provision for loan losses		3,900			7,494			—
Net interest income after provision for loan losses		24,777			16,596			21,124
Noninterest income:
Fair value adjustments of other equity investments		(50	)		(86	)		—
Mortgage servicing rights		597			1,574			1,827
Residential mortgage banking income, net		2,570			4,386			7,704
Gain on sale of government guaranteed loans		1,565			1,538			108
Bank and purchase card, net		353			599			497
Wealth and trust management		513			414			499
Service charges on deposit accounts		354			327			376
Increase in cash surrender value of bank owned life insurance		398			276			278
Other		1,668			1,162			2,006
Total noninterest income		7,968			10,190			13,295
Noninterest expense:
Salaries and employee benefits		14,174			15,873			14,677
Occupancy and equipment		1,422			1,500			1,716
Data processing		1,332			874			837
Legal, issuer, and regulatory filing		804			598			372
Advertising and marketing		302			412			442
Communications		932			1,030			760
Audit and accounting fees		308			379			195
FDIC insurance		460			106			487
Intangible amortization		377			386			451
Other contractual services		703			509			633
Other taxes and assessments		711			671			546
OCC remediation		4,025			510			—
Merger-related		—			—			1,441
Other		3,658			2,478			2,787
Total noninterest expense		29,208			25,326			25,344
Income from continuing operations before income tax		3,537			1,460			9,075
Income tax expense		801			342			2,214
Net income from continuing operations		2,736			1,118			6,861
Discontinued operations:
Loss from discontinued operations before income taxes		—			—			(70	)
Income tax benefit		—			—			(15	)
Net loss from discontinued operations		—			—			(55	)
Net income	$	2,736		$	1,118		$	6,806


Net loss from discontinued operations attributable to noncontrolling interest		—		—		4
Net income attributable to Blue Ridge Bankshares, Inc.	$	2,736	$	1,118	$	6,810
Net income available to common stockholders	$	2,736	$	1,118	$	6,810
Basic EPS from continuing operations	$	0.15	$	0.06	$	0.37
Diluted EPS from continuing operations	$	0.15	$	0.06	$	0.36


Blue Ridge Bankshares, Inc.
Consolidated Statements of Income (unaudited)
	For the Nine Months Ended
(Dollars in thousands except per share data)	September 30, 2022			September 30, 2021
Interest income:
Interest and fees on loans	$	77,892		$	76,248
Interest on taxable securities		6,236			3,580
Interest on nontaxable securities		245			177
Interest on deposit accounts and federal funds sold		818			137
Total interest income		85,191			80,142
Interest expense:
Interest on deposits		6,129			4,844
Interest on subordinated notes		1,668			2,142
Interest on FHLB and FRB borrowings		959			1,553
Total interest expense		8,756			8,539
Net interest income		76,435			71,603
Provision for loan losses		13,894			—
Net interest income after provision for loan losses		62,541			71,603
Noninterest income:
Fair value adjustments of other equity investments		9,228			—
Mortgage servicing rights		8,909			6,905
Residential mortgage banking income, net		9,777			24,259
Gain on sale of government guaranteed loans		4,530			1,325
Bank and purchase card, net		1,374			1,096
Wealth and trust management		1,318			1,934
Service charges on deposit accounts		996			1,073
Increase in cash surrender value of bank owned life insurance		946			679
Gain on sale of PPP loans		—			24,315
Other		5,174			3,460
Total noninterest income		42,252			65,046
Noninterest expense:
Salaries and employee benefits		44,143			46,119
Occupancy and equipment		4,407			4,893
Data processing		3,152			3,126
Legal, issuer, and regulatory filing		1,704			1,437
Advertising and marketing		1,142			959
Communications		2,761			1,799
Audit and accounting fees		828			675
FDIC insurance		797			839
Intangible amortization		1,160			1,259
Other contractual services		1,803			2,152
Other taxes and assessments		1,952			1,969
OCC remediation		4,558			—
Merger-related		50			11,697
Other		8,767			8,921
Total noninterest expense		77,224			85,845
Income from continuing operations before income tax		27,569			50,804
Income tax expense		6,296			11,007
Net income from continuing operations		21,273			39,797
Discontinued operations:
Income (loss) from discontinued operations before income taxes (including gain on disposal of $471 thousand for the nine months ended September 30, 2022)		426			(142	)
Income tax expense (benefit)		89			(30	)
Net income (loss) from discontinued operations		337			(112	)
Net income	$	21,610		$	39,685
Net income from discontinued operations attributable to noncontrolling interest		(1	)		(1	)
Net income attributable to Blue Ridge Bankshares, Inc.	$	21,609		$	39,684


Blue Ridge Bankshares, Inc.
Consolidated Balance Sheets
(Dollars in thousands except share data)	(unaudited) September 30, 2022			December 31, 2021 (1)
Assets
Cash and due from banks	$	98,305		$	130,548
Federal funds sold		10,581			43,903
Securities available for sale, at fair value		359,516			373,532
Restricted equity investments		13,639			8,334
Other equity investments		23,570			14,184
Other investments		17,468			12,681
Loans held for sale		25,800			121,943
Paycheck Protection Program loans, net of deferred fees and costs		13,148			30,406
Loans held for investment, net of deferred fees and costs		2,158,342			1,777,172
Less allowance for loan losses		(20,534	)		(12,121	)
Loans held for investment, net		2,137,808			1,765,051
Accrued interest receivable		9,577			9,573
Other real estate owned		195			157
Premises and equipment, net		23,838			26,624
Right-of-use asset		6,323			6,317
Bank owned life insurance		47,095			46,545
Goodwill		26,826			26,826
Other intangible assets		7,016			7,594
Mortgage derivative asset		1,045			1,876
Mortgage servicing rights, net		29,861			16,469
Mortgage brokerage receivable		—			4,064
Other assets		29,840			17,211
Assets of discontinued operations		—			1,301
Total assets	$	2,881,451		$	2,665,139
Liabilities and Stockholders’ Equity
Deposits:
Noninterest-bearing demand	$	787,514		$	685,801
Interest-bearing demand and money market deposits		1,097,585			962,092
Savings		152,225			150,376
Time deposits		372,162			499,502
Total deposits		2,409,486			2,297,771
FHLB borrowings		150,100			10,111
FRB borrowings		55			17,901
Subordinated notes, net		39,937			39,986
Lease liability		7,344			7,651
Other liabilities		24,027			14,543
Liabilities of discontinued operations		—			37
Total liabilities		2,630,949			2,388,000
Commitments and contingencies
Stockholders’ Equity:
Common stock, no par value; 50,000,000 and 25,000,000 shares authorized at September 30, 2022 and December 31, 2021, respectively; 18,946,268 and 18,774,082 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		195,351			194,309
Additional paid-in capital		252			252
Retained earnings		104,279			85,982
Accumulated other comprehensive loss		(49,380	)		(3,632	)
Total Blue Ridge Bankshares, Inc. stockholders’ equity		250,502			276,911
Noncontrolling interest of discontinued operations		—			228
Total stockholders’ equity		250,502			277,139
Total liabilities and stockholders’ equity	$	2,881,451		$	2,665,139


(1) Derived from audited December 31, 2021 Consolidated Financial Statements.


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 share data)	September 30,			June 30,			March 31,			December 31,			September 30,
Income Statement Data:	2022			2022			2022			2021			2021
Interest income	$	33,146		$	26,243		$	25,802		$	23,404		$	23,754
Interest expense		4,469			2,153			2,134			2,526			2,630
Net interest income		28,677			24,090			23,668			20,878			21,124
Provision for loan losses		3,900			7,494			2,500			117			—
Net interest income after provision for loan losses		24,777			16,596			21,168			20,761			21,124
Noninterest income		7,968			10,190			24,094			21,942			13,295
Noninterest expenses		29,208			25,326			22,689			25,143			25,344
Income before income taxes		3,537			1,460			22,573			17,560			9,075
Income tax expense		801			342			5,153			4,733			2,214
Net income from continuing operations		2,736			1,118			17,420			12,827			6,861
Net income (loss) from discontinued operations		—			—			337			(32	)		(55	)
Net income		2,736			1,118			17,757			12,795			6,806
Net (income) loss from discontinued operations attributable to noncontrolling interest		—			—			(1	)		(2	)		4
Net income attributable to Blue Ridge Bankshares, Inc.	$	2,736		$	1,118		$	17,756		$	12,793		$	6,810
Per Common Share Data:
Basic EPS from continuing operations	$	0.15		$	0.06		$	0.93		$	0.68		$	0.37
Basic EPS from discontinued operations		—			—			0.02			—			—
Basic EPS attributable to Blue Ridge Bankshares, Inc.	$	0.15		$	0.06		$	0.95		$	0.68		$	0.37
Diluted EPS from continuing operations	$	0.15		$	0.06		$	0.93		$	0.68		$	0.36
Diluted EPS from discontinued operations		—			—			0.02			—			—
Diluted EPS attributable to Blue Ridge Bankshares, Inc.	$	0.15		$	0.06		$	0.95		$	0.68		$	0.36
Dividends declared - post-stock split basis	$	0.1255		$	0.1255		$	0.1225		$	—		$	0.2400
Book value per common share		13.22			13.95			14.84			14.76			14.48
Tangible book value per common share - Non-GAAP		11.51			12.21			13.09			13.01			12.69
Balance Sheet Data:
Assets	$	2,881,451		$	2,799,643		$	2,724,584		$	2,665,139		$	2,699,302
Loans held for investment (including PPP loans)		2,171,490			2,064,037			1,866,197			1,807,578			1,771,531
Loans held for investment (excluding PPP loans)		2,158,342			2,048,383			1,843,344			1,777,172			1,724,883
Allowance for loan losses		20,534			17,242			12,013			12,121			12,614
Purchase accounting adjustments (discounts) on acquired loans		10,373			12,192			13,514			16,203			16,985
Loans held for sale		25,800			32,759			41,004			121,943			171,681
Securities available for sale, at fair value		359,516			381,536			375,484			373,532			379,441
Deposits		2,409,486			2,335,707			2,354,081			2,297,771			2,200,204
Subordinated notes, net		39,937			39,953			39,970			39,986			40,503
FHLB and FRB advances		150,155			135,060			25,319			28,012			158,972
Total stockholders' equity		250,502			261,660			278,482			277,139			269,720
Weighted average common shares outstanding - basic		18,849			18,767			18,772			18,774			18,776
Weighted average common shares outstanding - diluted		18,860			18,778			18,789			18,795			18,799
Financial Ratios:
Return on average assets (1)		0.38	%		0.17	%		2.68	%		1.90	%		0.95	%
Operating return on average assets (1) - Non-GAAP		0.81	%		0.23	%		2.68	%		1.92	%		1.16	%
Return on average equity (1)		4.10	%		1.57	%		25.84	%		18.90	%		11.58	%


Operating return on average equity (1) - Non-GAAP		8.86	%		2.14	%		25.92	%		19.10	%		11.87	%
Total loan to deposit ratio		91.2	%		89.8	%		81.0	%		84.1	%		88.3	%
Held for investment loan to deposit ratio		90.1	%		88.4	%		79.3	%		78.7	%		80.5	%
Net interest margin (1)		4.27	%		3.89	%		3.88	%		3.39	%		3.32	%
Cost of deposits (1)		0.50	%		0.26	%		0.27	%		0.29	%		0.29	%
Cost of funds (1)		0.69	%		0.36	%		0.36	%		0.42	%		0.43	%
Efficiency ratio		79.7	%		73.9	%		47.5	%		59.1	%		74.0	%
Operating efficiency ratio - Non-GAAP		68.7	%		72.4	%		47.4	%		58.7	%		69.8	%
OCC remediation expenses		4,025			510			23			—			—
Merger-related expenses (MRE)		—			—			50			171			1,441
Capital and Asset Quality Ratios:
Average stockholders' equity to average assets		9.2	%		10.8	%		10.4	%		10.1	%		9.7	%
Allowance for loan losses to loans held for investment, excluding PPP loans		0.95	%		0.84	%		0.65	%		0.68	%		0.73	%
Nonperforming loans to total assets		0.35	%		0.44	%		0.53	%		0.60	%		0.56	%
Nonperforming assets to total assets		0.36	%		0.44	%		0.53	%		0.61	%		0.57	%

Reconciliation of Non-GAAP Financial Measures (unaudited):

Tangible Common Equity:
Total stockholders' equity	$	250,502		$	261,660		$	278,482		$	277,139		$	269,720
Less: Goodwill and other intangibles, net of deferred tax liability (2)		(32,369	)		(32,632	)		(32,716	)		(32,942	)		(33,224	)
Tangible common equity (Non-GAAP)	$	218,133		$	229,028		$	245,766		$	244,197		$	236,496
Total shares outstanding		18,946			18,762			18,771			18,774			18,776
Book value per share	$	13.22		$	13.95		$	14.84		$	14.76		$	14.48
Tangible book value per share (Non-GAAP)		11.51			12.21			13.09			13.01			12.69

Tangible stockholders' equity to tangible total assets
Total assets	$	2,881,451		$	2,799,643		$	2,724,584		$	2,665,139		$	2,699,302
Less: Goodwill and other intangibles, net of deferred tax liability (2)		(32,369	)		(32,632	)		(32,716	)		(32,942	)		(33,224	)
Tangible total assets (Non-GAAP)	$	2,849,082		$	2,767,011		$	2,691,868		$	2,632,197		$	2,666,078
Tangible common equity (Non-GAAP)	$	218,133		$	229,028		$	245,766		$	244,197		$	236,496
Tangible stockholders' equity to tangible total assets (Non-GAAP)		7.7	%		8.3	%		9.1	%		9.3	%		8.9	%

Operating return on average assets (annualized)
Net income	$	2,736		$	1,118		$	17,755		$	12,795		$	6,806
Add: MRE, after-tax basis (ATB) (3)		—			—			40			135			1,138
Add: OCC remediation expenses, ATB (3)		3,180			403			18			—			—
Operating net income (Non-GAAP)	$	5,916		$	1,521		$	17,813		$	12,930		$	7,944
Average assets	$	2,903,447		$	2,646,874		$	2,653,987		$	2,687,204		$	2,749,909
Operating return on average assets (annualized) (Non-GAAP)		0.81	%		0.23	%		2.68	%		1.92	%		1.16	%

Operating return on average equity (annualized)
Net income	$	2,736		$	1,118		$	17,755		$	12,795		$	6,806
Add: MRE, ATB (3)		—			—			40			135			1,138
Add: OCC remediation expenses, ATB (3)		3,180			403			18			—			—
Operating net income (Non-GAAP)	$	5,916		$	1,521		$	17,813		$	12,930		$	7,944
Average stockholders' equity	$	267,057		$	284,913		$	274,887		$	270,730		$	267,670
Operating return on average equity (annualized) (Non-GAAP)		8.86	%		2.14	%		25.92	%		19.10	%		11.87	%

Operating efficiency ratio
Total noninterest expense	$	29,208		$	25,326		$	22,691		$	25,445		$	25,637
Less: MRE		—			—			50			171			1,441
Less: OCC remediation expenses		4,025			510			23			—			—
Noninterest expense, adjusted (Non-GAAP)	$	25,183		$	24,816		$	22,618		$	25,274		$	24,196
Net interest income		28,677			24,090			23,668			20,878			21,124