Blue Ridge Bankshares, Inc 8-K, filed Apr 27, 2023

Blue Ridge Bankshares, Inc. (BRBS)

8-K 2023-04-27 For: 2023-04-27

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Added on April 07, 2026

About this 8-K

Blue Ridge Bankshares, Inc filed this 8-K on April 27, 2023.

Items reported

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

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Virginia	001-39165	54-1838100
(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 April 27, 2023.
	104		Cover Page Interactive Data File (embedded within the Inline XBRL document)


			BLUE RIDGE BANKSHARES, INC.

Date:	April 27, 2023	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 common share data)	March 31, 2023			December 31, 2022		March 31, 2022
Interest income:
Interest and fees on loans	$	39,294		$	38,934	$	23,899
Interest on taxable securities		2,628			2,508		1,770
Interest on nontaxable securities		92			89		75
Interest on deposit accounts and federal funds sold		1,039			754		58
Total interest income		43,053			42,285		25,802
Interest expense:
Interest on deposits		11,331			5,131		1,556
Interest on subordinated notes		553			547		553
Interest on FHLB and FRB borrowings		3,810			2,651		25
Total interest expense		15,694			8,329		2,134
Net interest income		27,359			33,956		23,668
Provision for credit losses - loans		4,100			3,992		2,500
Provision for credit losses - unfunded commitments		(400	)		—		—
Total provision for credit losses		3,700			3,992		2,500
Net interest income after provision for credit losses		23,659			29,964		21,168
Noninterest income:
Fair value adjustments of other equity investments		(51	)		78		9,364
Residential mortgage banking income, including MSRs		1,303			1,961		9,559
Gain on sale of government guaranteed loans		2,409			204		1,427
Wealth and trust management		432			451		391
Service charges on deposit accounts		343			293		315
Increase in cash surrender value of BOLI		282			402		272
Bank and purchase card, net		340			866		422
Other		2,225			1,585		2,344
Total noninterest income		7,283			5,840		24,094
Noninterest expense:
Salaries and employee benefits		15,289			11,863		14,096
Occupancy and equipment		1,569			1,509		1,485
Data processing		1,346			1,441		946
Legal		1,234			1,300		382
Advertising and marketing		286			318		428
Communications		1,131			1,064		799
Audit and accounting fees		146			476		141
FDIC insurance		729			543		231
Intangible amortization		355			365		397
Other contractual services		939			1,334		534
Other taxes and assessments		802			716		570
Regulatory remediation		1,134			2,884		—
Merger-related		—			—		50
Other		3,887			3,739		2,630
Total noninterest expense		28,847			27,552		22,689
Income from continuing operations before income tax		2,095			8,252		22,573
Income tax expense		491			1,948		5,153
Net income from continuing operations		1,604			6,304		17,420
Discontinued operations:
Income from discontinued operations before income taxes		—			—		426
Income tax expense		—			—		89
Net income from discontinued operations		—			—		337


Net income	$	1,604	$	6,304	$	17,757
Net income from discontinued operations attributable to noncontrolling interest		—		—		(1	)
Net income attributable to Blue Ridge Bankshares, Inc.	$	1,604	$	6,304	$	17,756
Net income available to common stockholders	$	1,604	$	6,304	$	17,756
Diluted EPS from continuing operations	$	0.09	$	0.33	$	0.93


Blue Ridge Bankshares, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except share data)	(unaudited) March 31, 2023			December 31, 2022 (1)
Assets
Cash and due from banks	$	226,374		$	77,274
Federal funds sold		1,976			1,426
Securities available for sale, at fair value		351,990			354,341
Restricted equity investments		18,388			21,257
Other equity investments		22,960			23,776
Other investments		26,538			24,672
Loans held for sale		76,528			69,534
Paycheck Protection Program loans, net of deferred fees and costs		7,988			11,967
Loans held for investment, net of deferred fees and costs		2,448,992			2,399,092
Less: allowance for credit losses		(29,974	)		(22,939	)
Loans held for investment, net		2,419,018			2,376,153
Accrued interest receivable		14,915			12,393
Other real estate owned		—			195
Premises and equipment, net		23,244			23,152
Right-of-use asset		6,470			6,903
Bank owned life insurance		47,536			47,245
Goodwill		26,826			26,826
Other intangible assets		6,196			6,583
Mortgage servicing rights, net		27,095			28,991
Deferred tax asset, net		9,605			9,182
Other assets		21,264			19,175
Total assets	$	3,334,911		$	3,141,045
Liabilities and Stockholders’ Equity
Deposits:
Noninterest-bearing demand	$	594,518		$	640,101
Interest-bearing demand and money market deposits		1,326,655			1,318,799
Savings		143,530			151,646
Time deposits		696,344			391,961
Total deposits		2,761,047			2,502,507
FHLB borrowings		239,100			311,700
FRB borrowings		—			51
Subordinated notes, net		39,904			39,920
Lease liability		7,398			7,860
Other liabilities		29,876			19,634
Total liabilities		3,077,325			2,881,672
Commitments and contingencies
Stockholders’ Equity:
Common stock, no par value; 50,000,000 shares authorized at March 31, 2023 and December 31, 2022; 18,942,091 and 18,950,329 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively		196,498			195,960
Additional paid-in capital		252			252
Retained earnings		102,071			108,262
Accumulated other comprehensive loss, net of tax		(41,235	)		(45,101	)
Total stockholders’ equity		257,586			259,373
Total liabilities and stockholders’ equity	$	3,334,911		$	3,141,045

(1) Derived from audited December 31, 2022 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 per common share data)	March 31,			December 31,			September 30,			June 30,			March 31,
Income Statement Data:	2023			2022			2022			2022			2022
Interest income	$	43,053		$	42,285		$	33,146		$	26,243		$	25,802
Interest expense		15,694			8,329			4,469			2,153			2,134
Net interest income		27,359			33,956			28,677			24,090			23,668
Provision for credit losses		3,700			3,992			3,900			7,494			2,500
Net interest income after provision for loan losses		23,659			29,964			24,777			16,596			21,168
Noninterest income		7,283			5,840			7,968			10,190			24,094
Noninterest expenses		28,847			27,552			29,208			25,326			22,689
Income before income taxes		2,095			8,252			3,537			1,460			22,573
Income tax expense		491			1,948			801			342			5,153
Net income from continuing operations		1,604			6,304			2,736			1,118			17,420
Net income from discontinued operations		—			—			—			—			337
Net income		1,604			6,304			2,736			1,118			17,757
Net income from discontinued operations attributable to noncontrolling interest		—			—			—			—			(1	)
Net income attributable to Blue Ridge Bankshares, Inc.	$	1,604		$	6,304		$	2,736		$	1,118		$	17,756
Per Common Share Data:
Basic EPS from continuing operations	$	0.09		$	0.33		$	0.15		$	0.06		$	0.93
Basic EPS from discontinued operations		—			—			—			—			0.02
Basic EPS attributable to Blue Ridge Bankshares, Inc.	$	0.09		$	0.33		$	0.15		$	0.06		$	0.95
Diluted EPS from continuing operations	$	0.09		$	0.33		$	0.15		$	0.06		$	0.93
Diluted EPS from discontinued operations		—			—			—			—			0.02
Diluted EPS attributable to Blue Ridge Bankshares, Inc.	$	0.09		$	0.33		$	0.15		$	0.06		$	0.95
Dividends declared per common share	$	0.1225		$	0.1225		$	0.1225		$	0.1225		$	0.1225
Book value per common share		13.60			13.69			13.22			13.95			14.84
Tangible book value per common share - Non-GAAP		11.93			12.00			11.51			12.21			13.09
Balance Sheet Data:
Assets	$	3,334,911		$	3,141,045		$	2,881,451		$	2,799,643		$	2,724,584
Average interest-earning assets		3,060,534			2,812,898			2,686,376			2,482,065			2,444,099
Loans held for investment (including PPP loans)		2,456,980			2,411,059			2,171,490			2,064,037			1,866,197
Loans held for investment (excluding PPP loans)		2,448,992			2,399,092			2,158,342			2,048,383			1,843,344
Allowance for credit losses		29,974			22,939			20,534			17,242			12,013
Purchase accounting adjustments (discounts) on acquired loans		6,724			7,872			10,373			12,192			13,514
Loans held for sale		76,528			69,534			25,800			32,759			41,004
Securities available for sale, at fair value		351,990			354,341			359,516			381,536			375,484
Noninterest-bearing demand deposits		594,518			640,101			787,514			785,743			766,506
Total deposits		2,761,047			2,502,507			2,409,486			2,335,707			2,354,081
Subordinated notes, net		39,904			39,920			39,937			39,953			39,970
FHLB and FRB advances		239,100			311,751			150,155			135,060			25,319
Average interest-bearing liabilities		2,169,643			1,777,391			1,771,246			1,627,423			1,632,444
Total stockholders' equity		257,586			259,373			250,502			261,660			278,482
Weighted average common shares outstanding - basic		18,856			18,857			18,849			18,767			18,772
Weighted average common shares outstanding - diluted		18,860			18,863			18,860			18,778			18,789
Financial Ratios:
Return on average assets (1)		0.20	%		0.83	%		0.38	%		0.17	%		2.68	%
Operating return on average assets (1) - Non-GAAP		0.31	%		1.14	%		0.81	%		0.23	%		2.68	%
Return on average equity (1)		2.47	%		9.56	%		4.10	%		1.57	%		25.84	%
Operating return on average equity (1) - Non-GAAP		3.85	%		13.01	%		8.86	%		2.14	%		25.92	%
Total loan to deposit ratio		91.8	%		99.1	%		91.2	%		89.8	%		81.0	%


Held for investment loan to deposit ratio		89.0	%		96.3	%		90.1	%		88.4	%		79.3	%
Net interest margin (1)		3.58	%		4.83	%		4.27	%		3.89	%		3.88	%
Cost of deposits (1)		1.74	%		0.85	%		0.50	%		0.26	%		0.27	%
Cost of funds (1)		2.11	%		1.22	%		0.69	%		0.36	%		0.36	%
Efficiency ratio		83.3	%		69.2	%		79.7	%		73.9	%		47.5	%
Operating efficiency ratio - Non-GAAP		80.0	%		62.0	%		68.7	%		72.4	%		47.4	%
Regulatory remediation expenses		1,134			2,884			4,025			510			23
Merger-related expenses (MRE)		—			—			—			—			50
Capital and Asset Quality Ratios:
Average stockholders' equity to average assets		7.9	%		8.7	%		9.2	%		10.8	%		10.4	%
Allowance for credit losses to loans held for investment, excluding PPP loans		1.22	%		0.96	%		0.95	%		0.84	%		0.65	%
Nonperforming loans to total assets		0.92	%		0.59	%		0.35	%		0.44	%		0.53	%
Nonperforming assets to total assets		0.92	%		0.60	%		0.36	%		0.44	%		0.53	%

Reconciliation of Non-GAAP Financial Measures (unaudited):

Tangible Common Equity:
Total stockholders' equity	$	257,586		$	259,373		$	250,502		$	261,660		$	278,482
Less: Goodwill and other intangibles, net of deferred tax liability (2)		(31,637	)		(32,027	)		(32,369	)		(32,632	)		(32,716	)
Tangible common equity (Non-GAAP)	$	225,949		$	227,346		$	218,133		$	229,028		$	245,766
Total shares outstanding		18,942			18,950			18,946			18,762			18,771
Book value per common share	$	13.60		$	13.69		$	13.22		$	13.95		$	14.84
Tangible book value per common share (Non-GAAP)		11.93			12.00			11.51			12.21			13.09

Tangible stockholders' equity to tangible total assets
Total assets	$	3,334,911		$	3,141,045		$	2,881,451		$	2,799,643		$	2,724,584
Less: Goodwill and other intangibles, net of deferred tax liability (2)		(31,637	)		(32,027	)		(32,369	)		(32,632	)		(32,716	)
Tangible total assets (Non-GAAP)	$	3,303,274		$	3,109,018		$	2,849,082		$	2,767,011		$	2,691,868
Tangible common equity (Non-GAAP)	$	225,949		$	227,346		$	218,133		$	229,028		$	245,766
Tangible stockholders' equity to tangible total assets (Non-GAAP)		6.8	%		7.3	%		7.7	%		8.3	%		9.1	%

Operating return on average assets (annualized)
Net income	$	1,604		$	6,304		$	2,736		$	1,118		$	17,755
Add: MRE, after-tax basis (ATB) (3)		—			—			—			—			40
Add: Regulatory remediation expenses, ATB (3)		896			2,278			3,180			403			18
Operating net income (Non-GAAP)	$	2,500		$	8,582		$	5,916		$	1,521		$	17,813
Average assets	$	3,270,110		$	3,020,371		$	2,903,447		$	2,646,874		$	2,653,987
Operating return on average assets (annualized) (Non-GAAP)		0.31	%		1.14	%		0.81	%		0.23	%		2.68	%

Operating return on average equity (annualized)
Net income	$	1,604		$	6,304		$	2,736		$	1,118		$	17,755
Add: MRE, ATB (3)		—			—			—			—			40
Add: Regulatory remediation expenses, ATB (3)		896			2,278			3,180			403			18
Operating net income (Non-GAAP)	$	2,500		$	8,582		$	5,916		$	1,521		$	17,813
Average stockholders' equity	$	259,911		$	263,826		$	267,057		$	284,913		$	274,887
Operating return on average equity (annualized) (Non-GAAP)		3.85	%		13.01	%		8.86	%		2.14	%		25.92	%

Operating efficiency ratio
Total noninterest expense	$	28,847		$	27,552		$	29,208		$	25,326		$	22,691
Less: MRE		—			—			—			—			50
Less: Regulatory remediation expenses		1,134			2,884			4,025			510			23
Noninterest expense, adjusted (Non-GAAP)	$	27,713		$	24,668		$	25,183		$	24,816		$	22,618
Net interest income		27,359			33,956			28,677			24,090			23,668
Noninterest income		7,283			5,840			7,968			10,190			24,094


Total of net interest income and noninterest income	$	34,642		$	39,796		$	36,645		$	34,280		$	47,762
Operating efficiency ratio (Non-GAAP)		80.0	%		62.0	%		68.7	%		72.4	%		47.4	%

(1) Annualized.
(2) Excludes mortgage servicing rights.
(3) Assumes an income tax rate of 21% and full deductibility.