Blue Ridge Bankshares, Inc. Announces 2024 Second Quarter Results
Blue Ridge Bankshares (NYSE American: BRBS) reported a net loss of $11.4 million ($0.47 per diluted share) for Q2 2024, up from a $2.9 million loss in Q1 2024. The year-to-date net loss stands at $14.3 million ($0.66 per share). A key factor was a $6.7 million after-tax negative fair value adjustment on a fintech equity investment. The company completed a $161.6 million capital raise to fund strategic initiatives and regulatory capital requirements.
Blue Ridge is winding down its fintech depository operations, with fintech deposits decreasing to 7% of total deposits. The bank saw reductions in nonperforming loans, improved regulatory expenses, and stable core deposits. The capital raise led to enhanced capital ratios, exceeding regulatory minimums. However, asset quality issues persisted with a $10.6 million net loan charge-off. Net interest income declined slightly to $20.1 million, and noninterest income dropped substantially due to fair value adjustments.
Blue Ridge Bankshares (NYSE American: BRBS) ha riportato una perdita netta di 11,4 milioni di dollari (0,47 dollari per azione diluita) per il secondo trimestre del 2024, rispetto a una perdita di 2,9 milioni di dollari nel primo trimestre del 2024. La perdita netta da inizio anno è di 14,3 milioni di dollari (0,66 dollari per azione). Un fattore chiave è stato un aggiustamento negativo del valore equo dopo le tasse di 6,7 milioni di dollari su un investimento azionario nel fintech. L'azienda ha completato una raccolta di capitali di 161,6 milioni di dollari per finanziare iniziative strategiche e requisiti di capitale normativo.
Blue Ridge sta riducendo le sue operazioni di deposito fintech, con i depositi fintech che scendono al 7% del totale dei depositi. La banca ha visto una riduzione dei prestiti non performanti, miglioramenti nelle spese normative e depositi core stabili. La raccolta di capitali ha portato a un miglioramento dei rapporti di capitale, superando i minimi normativi. Tuttavia, persistono problemi di qualità degli attivi con una cancellazione netta di prestiti di 10,6 milioni di dollari. Il reddito netto da interessi è leggermente diminuito a 20,1 milioni di dollari e il reddito non da interessi è crollato sostanzialmente a causa degli aggiustamenti del valore equo.
Blue Ridge Bankshares (NYSE American: BRBS) reportó una pérdida neta de 11.4 millones de dólares (0.47 dólares por acción diluida) para el segundo trimestre de 2024, en comparación con una pérdida de 2.9 millones de dólares en el primer trimestre de 2024. La pérdida neta acumulada en lo que va del año asciende a 14.3 millones de dólares (0.66 dólares por acción). Un factor clave fue un ajuste negativo en el valor justo de 6.7 millones de dólares después de impuestos sobre una inversión de capital en fintech. La compañía completó una recaudación de capital de 161.6 millones de dólares para financiar iniciativas estratégicas y requisitos de capital regulatorio.
Blue Ridge está cerrando sus operaciones de depósito fintech, con los depósitos fintech disminuyendo al 7% del total de depósitos. El banco observó reducciones en préstamos no productivos, mejoras en los gastos regulatorios y depósitos centrales estables. La recaudación de capital llevó a una mejora en los índices de capital, superando los mínimos regulatorios. Sin embargo, persistieron problemas de calidad de activos con una cancelación neta de préstamos de 10.6 millones de dólares. Los ingresos netos por intereses disminuyeron ligeramente a 20.1 millones de dólares, y los ingresos no relacionados con intereses cayeron de manera sustancial debido a los ajustes de valor justo.
블루 리지 뱅크쉐어스 (NYSE American: BRBS)는 2024년 2분기에 1140만 달러($0.47 단위 주당)의 순손실을 기록했다고 보고했습니다. 이는 2024년 1분기의 290만 달러 손실에서 증가한 수치입니다. 연초부터 현재까지의 순손실은 1430만 달러($0.66 주당)입니다. 주요 요인은 핀테크 주식 투자에 대한 세후 670만 달러의 부정적인 공정 가치 조정이었습니다. 이 회사는 전략적 이니셔티브와 규제 자본 요건을 자금을 조달하기 위해 1억 6160만 달러의 자본 조달을 완료했습니다.
블루 리지는 핀테크 예금 운영을 축소하고 있으며, 핀테크 예금은 총 예금의 7%로 감소했습니다. 은행은 부실 대출이 감소하고, 규제 비용이 개선되며, 핵심 예금이 안정적인 모습을 보였습니다. 자본 조달로 인해 자본 비율이 개선되어 규제 최소치를 초과했습니다. 그러나 자산 품질 문제는 여전히 지속되어 1060만 달러의 순 대출 상각이 발생했습니다. 순이자 수익은 2010만 달러로 약간 감소했으며, 비이자 수익은 공정 가치 조정으로 인해 크게 감소했습니다.
Blue Ridge Bankshares (NYSE American: BRBS) a déclaré une perte nette de 11,4 millions de dollars (0,47 dollar par action diluée) pour le deuxième trimestre 2024, en hausse par rapport à une perte de 2,9 millions de dollars au premier trimestre 2024. La perte nette depuis le début de l'année s'élève à 14,3 millions de dollars (0,66 dollar par action). Un facteur clé a été un ajustement négatif de valeur juste de 6,7 millions de dollars après impôts sur un investissement en capital dans le secteur fintech. L'entreprise a achevé une levée de fonds de 161,6 millions de dollars pour financer des initiatives stratégiques et des exigences de capital réglementaire.
Blue Ridge réduit ses opérations de dépôt fintech, les dépôts fintech représentant désormais 7 % du total des dépôts. La banque a constaté une diminution des prêts non performants, une amélioration des dépenses réglementaires et des dépôts de base stables. La levée de fonds a conduit à une amélioration des ratios de capitaux, dépassant les minima réglementaires. Cependant, des problèmes de qualité d'actifs persistent avec une radiation nette de prêts de 10,6 millions de dollars. Les revenus nets d'intérêts ont légèrement diminué à 20,1 millions de dollars, et les revenus non liés aux intérêts ont chuté considérablement en raison d'ajustements de valeur juste.
Blue Ridge Bankshares (NYSE American: BRBS) meldete für das zweite Quartal 2024 einen Nettoverlust von 11,4 Millionen Dollar (0,47 Dollar pro verwässerter Aktie), nach einem Verlust von 2,9 Millionen Dollar im ersten Quartal 2024. Der Nettoverlust seit Jahresbeginn beläuft sich auf 14,3 Millionen Dollar (0,66 Dollar pro Aktie). Ein wesentlicher Faktor war eine negative Anpassung des fairen Wertes nach Steuern von 6,7 Millionen Dollar auf eine Beteiligung im Fintech-Bereich. Das Unternehmen schloss eine Kapitalerhöhung in Höhe von 161,6 Millionen Dollar ab, um strategische Initiativen und regulatorische Kapitalanforderungen zu finanzieren.
Blue Ridge reduziert seine Fintech-Depositen, die nun 7 % der Gesamteinlagen ausmachen. Die Bank verzeichnete Rückgänge bei notleidenden Krediten, verbesserte regulatorische Ausgaben und stabile Kern-Einlagen. Die Kapitalerhöhung führte zu verbesserten Kapitalquoten, die die regulatorischen Mindestanforderungen übertrafen. Die Vermögensqualität war jedoch weiterhin problematisch, mit einer Netto-Kreditabschreibung von 10,6 Millionen Dollar. Die Nettozinsgewinne sanken leicht auf 20,1 Millionen Dollar, und die Nichtzinsgewinne fielen erheblich aufgrund von Anpassungen des fairen Wertes.
- Completed $161.6 million capital raise
- Regulatory capital ratios exceeded minimum requirements
- Nonperforming loans decreased to $46.0 million
- Core deposits remained stable
- Net loss of $11.4 million in Q2 2024
- Negative fair value adjustment of $6.7 million on fintech equity investment
- Noninterest income declined significantly
- Net loan charge-offs increased to $10.6 million
Completed capital raise of
Company on-track to exit its fintech depository operations
Bank capital levels meet enhanced regulatory minimum capital ratios
RICHMOND, Va., July 25, 2024 /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. ("BRB Financial Group"), today announced financial results for the quarter ended June 30, 2024.
For the quarter ended June 30, 2024, the Company reported a net loss of
For the year-to-date period ended June 30, 2024, the Company reported a net loss of
A Message From Blue Ridge Bankshares, Inc. President and CEO, G. William "Billy" Beale:
"We are now several quarters into an expansive initiative to address both the remediation requirements of our primary regulator and our goal to restore Blue Ridge Bank to its core strengths and roots as a premier community financial institution. Today, we have a comprehensive strategy that will guide us in ultimately moving beyond our near-term compliance focus to fundamentally strengthen our position and operating profile.
"Many of the decisions we have made over the past few quarters have had a pronounced near-term impact, most notably on our balance sheet, expense levels, and certainly our bottom line. But these decisions are necessary to drive the meaningful and lasting change at Blue Ridge Bank and position us well for the future.
"That said, I believe we are entering a phase where we are seeing some of the fruits of our labor. As we look at our performance, particularly on a sequential basis, certain key metrics are beginning to reflect this progress. For example:
- "Concerning our regulatory remediation efforts, we have moved aggressively to wind down our fintech Banking-as-a-Service ("BaaS") operations. These plans are on track and are working. Consequently, we have seen steady sequential decreases in BaaS deposits over the past three quarters, and, as of June 30, 2024, BaaS deposits, the majority of our fintech-related deposits, were roughly 7 percent of total deposits – about one-third of what they were this time last year.
"Relatedly, we've seen meaningful sequential reductions in regulatory remediation-related expense levels for the past three quarters. In the second quarter of 2024, these levels were roughly one-third of what they were three quarters ago. - "Shrinking the balance sheet to meet liquidity needs and to improve the overall quality and risk profile of our lending portfolio have also been areas of intense focus. While these efforts are ongoing, we have seen a general improvement in our nonperforming loan and asset ratios. As of the end of the 2024 second quarter, the ratio of nonperforming assets to total assets is at its lowest in the past four quarters. As we move forward, we will continue to improve our credit culture and oversight, and to reduce our exposure to non-core loans, while continuing to meet the borrowing needs of our customers.
- "Lastly, amidst all this change, our core deposits and their costs have been relatively stable going back several quarters. As we continue our efforts to wind down BaaS operations, reducing the level of high-cost BaaS deposits, we anticipate that our overall cost of deposits will decline in the back half of 2024.
"Clearly, we have much more to do, but it is encouraging to see some early indications of progress against strategy, and I am buoyed by the talent and efforts of our leadership team and the culture we are building. As we move forward, we will increasingly be shifting our focus from the completion of remediation efforts to a deeper examination of our operations and identification of areas where we can improve. This is all toward the goal of creating a revitalized and refocused Blue Ridge Bank that is well-positioned for profitable growth.
"Finally, I am pleased to have the capital raise behind us, which positions the Bank to meet its regulatory capital requirements. With the capital raise, we welcomed three new directors, Trevor Montano, Anthony (Tony) R. Scavuzzo, and Ciaran McMullan. I am certain these individuals will make us a better company; their contributions have been meaningful already. And I am grateful for the five directors that will be departing from our board commensurate with our next annual meeting of shareholders. These directors, Mensel D. Dean, Jr., chairman of our board, Larry Dees, Robert S. Janney, Andrew (Drew) C. Holzwarth, and Richard (Rick) A. Farmer, III, have devoted countless hours to our company. I thank these gentlemen for their dedication and guidance over the many years they have served."
Private Placement Stock Offering
On April 3, 2024 and June 13, 2024, the Company closed private placements in which it issued and sold shares of its common and preferred stock for gross proceeds of
The Company intends to use the capital from the Private Placements to propel its near-term strategic initiatives, which include repositioning business lines, supporting organic growth, and further enhancing the Bank's capital levels, including compliance with the minimum capital ratios set forth in the Bank's Consent Order with the Office of the Comptroller of the Currency (the "OCC"), which requires the Bank to maintain a tier 1 leverage ratio of
Q2 2024 Highlights
(Comparisons for Second Quarter 2024 are relative to First Quarter 2024 unless otherwise noted.)
Net Income:
- The net loss in the quarter was
, or$11.4 million per diluted common share, compared to a net loss of$0.47 , or$2.9 million per diluted common share, for the prior quarter. Loss before income taxes of$0.15 in the quarter included a$12.1 million , non-cash, fair value adjustment of an equity investment the Company holds in a fintech company and a provision for credit losses of$8.5 million , compared to a$3.1 million recovery of credit losses in the prior quarter. Excluding the fair value adjustment and the provision for/recovery of credit losses, the Company's pre-tax loss improved by$1.0 million from the prior quarter.$3.9 million
Asset Quality:
- As a result of an agreement the Company executed in the current quarter to sell a specialty finance loan to a third party, the Company reclassified this loan to loans held for sale in the second quarter at its estimated fair value and recorded a charge-off of substantially all of the reserve held on the loan, which was provisioned for in prior years.
- Nonperforming loans, which include nonaccrual loans and loans past due 90 days or more and accruing interest, improved to
, or$46.0 million 1.57% of total assets, at quarter end compared to , or$53.2 million 1.73% of total assets, at the prior quarter end. The decline in nonperforming loans primarily reflects payments received on and a charge-off of substantially all of the reserve related to the previously noted specialty finance loan.
The provision for credit losses was
- The allowance for credit losses ("ACL") as a percentage of total loans held for investment was
1.24% at quarter end compared to1.46% at the prior quarter end. Specific reserves associated with the aforementioned specialty finance loan totaled and$0 at June 30, 2024 and March 31, 2024, respectively.$9.6 million
Capital:
- The ratio of tangible common stockholders' equity to tangible total assets was
10.3% 1, compared to5.8% 1 at the prior quarter end. Tangible book value per common share was 1, compared to$4.10 1 at the prior quarter end. The changes in these measures from the prior quarter reflects the issuance of 53,922,000 shares of common stock pursuant to the Private Placements.$9.04 - For the quarter ended June 30, 2024, the Bank's tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were
11.02% ,14.13% ,14.13% , and15.11% , respectively, compared to7.44% ,9.28% ,9.28% , and10.51% , respectively, at the prior quarter end. The increase in these ratios primarily reflects a capital contribution to the Bank in the quarter.$110.0 million - As of June 30, 2024, the Bank's tier 1 leverage and total risk-based capital ratios exceeded the minimum capital ratios set forth in the Consent Order.
Net Interest Income / Net Interest Margin:
- Net interest income was
, a decline of$20.1 million from the prior quarter, primarily due to a decline in average balances of interest-earning assets, partially offset by lower average balances of and rates paid on fintech-related deposits and lower average balances of borrowings. Net interest margin improved in the quarter to$0.3 million 2.79% from2.75% in the prior quarter.
Noninterest Income / Noninterest Expense:
- Noninterest income was
, including the$0.3 million previously noted negative fair value adjustment for an equity investment, compared to noninterest income of$8.5 million for the prior quarter. Excluding the fair value adjustment, higher noninterest income in the quarter was primarily due to positive fair value adjustments on mortgage servicing rights assets, which were$7.8 million , due to the change in future interest rate expectations. Lower other noninterest income was primarily due to lower income from fintech and other investments in the quarter.$2.0 million - Noninterest expense was
compared to$29.3 million for the prior quarter, a decrease of$32.5 million . The decrease was primarily due to lower salaries and employee benefits expense and lower regulatory remediation expenses. Salaries and employee benefits expense in the quarter reflected lower headcount, primarily in the Bank's government guaranteed lending and compliance areas. Lower regulatory remediation expenses reflect the reduction in the use of third-party resources in the Bank Secrecy Act/Anti-Money Laundering ("BSA/AML") area, as the Bank completes certain requirements under the Consent Order.$3.1 million
Income Tax:
- The effective income tax rate for the quarter was
5.1% compared to12.3% for the prior quarter. The income tax benefit for the quarter includes of provision expense recognized upon surrendering bank-owned life insurance policies, representing the tax effect of the life-to-date income earned on the policies. Taxes on such earnings were previously permanently deferred but became subject to tax upon the surrender of the policies.$2.0 million
Balance Sheet:
- Total assets decreased to
from$2.93 billion at the prior quarter end, a decline of$3.08 billion , as the Bank purposefully reduced assets to meet the liquidity needs of the fintech BaaS operations wind down and maturities of wholesale funding. Decreases were primarily in loans held for investment, which declined$143.1 million . Other declines included decreases in other equity investments, other investments, and bank-owned life insurance. In the second quarter, the Company reduced its carrying value of an equity investment in a fintech company, as previously noted, and sold certain of its interests in Small Business Investment Company ("SBIC") investments. Additionally, the Company surrendered the majority of its bank-owned life insurance policies in the quarter and received a portion of the proceeds. These actions, along with the exit of fintech BaaS operations, support the repositioning of the Bank towards a more traditional community bank model.$134.8 million - Total deposit balances decreased to
from$2.33 billion at the prior quarter end, a decrease of$2.47 billion . This decrease reflects a$139.9 million reduction of fintech-related balances and a$96.3 million reduction in brokered deposits. Core deposit growth was$49.4 million in the quarter, which excludes the loss of a municipality deposit of approximately$43.1 million , which also resulted in the release of collateral held for this relationship. In the first half of 2024, core deposits, excluding the municipal deposit, increased$37.3 million .$107.1 million - Deposits related to fintech relationships were
at June 30, 2024, compared to$206.6 million at the prior quarter end, a decline of$303.0 million . Of the decline, BaaS deposits decreased$96.3 million , partially offset by an increase in fintech corporate deposits. Fintech-related deposits represented approximately$100.5 million 8.9% of total deposits at June 30, 2024 compared to12.3% of total deposits at the prior quarter end, and27.1% at June 30, 2023. Excluding wholesale funding, deposits related to fintech relationships represented11.1% and15.5% of total deposits at June 30, 2024 and March 31, 2024, respectively. Estimated uninsured deposits as a percentage of total deposits were17.9% at quarter end compared to22.4% at the prior quarter end. - Loans held for investment were
at quarter end, a decrease of$2.26 billion from the prior quarter end, as the Company purposefully and selectively reduced balances of loans and reclassified a specialty finance loan to loans held for sale, as previously noted. The held for investment loan-to-deposit ratio measured$134.8 million 97.1% as of the end of both periods. - The
borrowing pursuant to the Federal Reserve Bank's Bank Term Funding Program was repaid at its maturity in the quarter.$65 million - Total stockholders' equity was
at quarter end, an increase of$325.6 million from the prior quarter end, primarily due to$144.7 million of net proceeds from the Private Placements.$152.5 million
Income Statement:
Net interest income was
Average balances of interest-earning assets decreased
Average balances of interest-bearing liabilities decreased
Cost of funds was
Net interest margin was
The Company recorded a provision for credit losses of
Noninterest income was
Noninterest expense was
Balance Sheet:
Loans held for investment were
Total deposits were
The Company previously reported that it had submitted to the Federal Deposit Insurance Corporation (the "FDIC") an application for a waiver of the prohibition on the acceptance, renewal, or rollover of brokered deposits. Such prohibition was a result of the Consent Order. Subsequent to the end of the second quarter, the Bank received approval from the FDIC allowing the Bank to accept, renew, or rollover brokered deposits. The approval is for a period of time and total amount.
Noninterest-bearing deposits represented
The held for investment loan to deposit ratio was
Fintech Operations:
Interest and fee income related to fintech partnerships represented approximately
Non-GAAP Financial Measures:
The accounting and reporting policies of the Company conform to
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 phases 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 strength of
the United States economy in general and the strength of the local economies in which the Company conducts operations; - the effects of, and changes in, the macroeconomic environment and financial market conditions, including monetary and fiscal policies, interest rates and inflation;
- the impact of, and the ability to comply with, the terms of the Consent Order with the OCC, including the heightened capital requirements and other restrictions therein, and other regulatory directives;
- the imposition of additional regulatory actions or restrictions for noncompliance with the Consent Order or otherwise;
- the Company's involvement in, and the outcome of, any litigation, legal proceedings or enforcement actions that may be instituted against the Company;
- reputational risk and potential adverse reactions of the Company's customers, suppliers, employees, or other business partners;
- the Company's ability to manage its fintech relationships, including implementing enhanced controls and procedures, complying with OCC directives and applicable laws and regulations, maintaining deposit levels and the quality of loans associated with these relationships and, in certain cases, winding down certain of these partnerships;
- the quality and composition of the Company's loan and investment portfolios, including changes in the level of the Company's nonperforming assets and charge-offs;
- the Company's management of risks inherent in its loan portfolio, the credit quality of its borrowers, and the risk of a prolonged downturn in the real estate market, which could impair the value of the Company's collateral and its ability to sell collateral upon any foreclosure;
- the ability to maintain adequate liquidity by retaining deposits and secondary funding sources, especially if the Company's or the banking industry's reputation becomes damaged;
- the ability to maintain capital levels adequate to support the Company's business and to comply with OCC directives;
- the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers;
- changes in consumer spending and savings habits;
- the willingness of users to substitute competitors' products and services for the Company's products and services;
- deposit flows;
- changes in technological and social media;
- potential exposure to fraud, negligence, computer theft, and cyber-crime;
- adverse developments in the banking industry generally, such as recent bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior;
- changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or Blue Ridge Bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products;
- the impact of changes in financial services policies, laws, and regulations, including laws, regulations, and policies concerning taxes, banking, securities, real estate, and insurance, and the application thereof by regulatory bodies;
- the effect of changes in accounting standards, policies, and practices as may be adopted from time to time;
- estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company's assets and liabilities;
- geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by
the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions inthe United States and abroad; - the occurrence or continuation of widespread health emergencies or pandemics, significant natural disasters, severe weather conditions, floods and other catastrophic events; and
- other risks and factors identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and in filings the Company makes from time to time with the
U.S. Securities and Exchange Commission ("SEC").
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. | ||||
Consolidated Balance Sheets | ||||
(Dollars in thousands, except share data) | (unaudited) | December 31, 2023 (1) | ||
Assets | ||||
Cash and due from banks | $ 124,607 | $ 110,491 | ||
Restricted cash | 5,924 | 10,660 | ||
Federal funds sold | 5,219 | 4,451 | ||
Securities available for sale, at fair value | 307,427 | 321,081 | ||
Restricted equity investments | 18,236 | 18,621 | ||
Other equity investments | 4,354 | 12,905 | ||
Other investments | 21,099 | 29,467 | ||
Loans held for sale | 54,377 | 46,337 | ||
Loans held for investment, net of deferred fees and costs | 2,259,279 | 2,430,947 | ||
Less: allowance for credit losses | (28,036) | (35,893) | ||
Loans held for investment, net | 2,231,243 | 2,395,054 | ||
Accrued interest receivable | 14,172 | 14,967 | ||
Premises and equipment, net | 21,746 | 22,348 | ||
Right-of-use asset | 8,208 | 8,738 | ||
Bank owned life insurance | 42,446 | 48,453 | ||
Other intangible assets | 4,548 | 5,382 | ||
Mortgage servicing rights, net | 29,862 | 27,114 | ||
Deferred tax asset, net | 21,051 | 21,556 | ||
Other assets | 18,553 | 19,929 | ||
Total assets | $ 2,933,072 | $ 3,117,554 | ||
Liabilities and Stockholders' Equity | ||||
Deposits: | ||||
Noninterest-bearing demand | $ 470,128 | $ 506,248 | ||
Interest-bearing demand and money market deposits | 769,870 | 1,049,536 | ||
Savings | 106,619 | 117,923 | ||
Time deposits | 979,222 | 892,325 | ||
Total deposits | 2,325,839 | 2,566,032 | ||
FHLB borrowings | 202,900 | 210,000 | ||
FRB borrowings | — | 65,000 | ||
Subordinated notes, net | 39,822 | 39,855 | ||
Lease liability | 8,947 | 9,619 | ||
Other liabilities | 29,950 | 41,059 | ||
Total liabilities | 2,607,458 | 2,931,565 | ||
Commitments and contingencies | ||||
Stockholders' Equity: | ||||
Common stock, no par value; 150,000,000 and 50,000,000 shares authorized at June 30, 2024 and December 31, 2023, respectively; and 73,503,647 and 19,198,379 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 300,976 | 197,636 | ||
Preferred stock, 30, 2024 and December 31, 2023, respectively; 2,732 and 0 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 137 | — | ||
Additional paid-in capital | 50,155 | 252 | ||
Retained earnings | 18,829 | 33,157 | ||
Accumulated other comprehensive loss, net of tax | (44,483) | (45,056) | ||
Total stockholders' equity | 325,614 | 185,989 | ||
Total liabilities and stockholders' equity | $ 2,933,072 | $ 3,117,554 | ||
(1) Derived from audited December 31, 2023 Consolidated Financial Statements. |
Blue Ridge Bankshares, Inc. | ||||||
Consolidated Statements of Income (unaudited) | ||||||
For the Three Months Ended | ||||||
As restated | ||||||
(Dollars in thousands, except per common share data) | June 30, 2024 | March 31, 2024 | June 30, 2023 | |||
Interest income: | ||||||
Interest and fees on loans | $ 36,196 | $ 38,346 | $ 38,326 | |||
Interest on taxable securities | 2,399 | 2,438 | 2,543 | |||
Interest on nontaxable securities | 62 | 60 | 94 | |||
Interest on deposit accounts and federal funds sold | 1,974 | 1,687 | 1,497 | |||
Total interest income | 40,631 | 42,531 | 42,460 | |||
Interest expense: | ||||||
Interest on deposits | 17,272 | 18,485 | 14,624 | |||
Interest on subordinated notes | 552 | 560 | 547 | |||
Interest on FHLB and FRB borrowings | 2,722 | 3,137 | 3,399 | |||
Total interest expense | 20,546 | 22,182 | 18,570 | |||
Net interest income | 20,085 | 20,349 | 23,890 | |||
Provision for credit losses - loans | 3,600 | — | 10,613 | |||
Recovery of credit losses - unfunded commitments | (500) | (1,000) | (600) | |||
Total provision for (recovery of) credit losses | 3,100 | (1,000) | 10,013 | |||
Net interest income after provision for credit losses | 16,985 | 21,349 | 13,877 | |||
Noninterest income: | ||||||
Fair value adjustments of other equity investments | (8,537) | (7) | (281) | |||
Residential mortgage banking income | 3,090 | 2,664 | 3,144 | |||
Mortgage servicing rights | 2,020 | 729 | 1,151 | |||
Gain on sale of government guaranteed loans | 11 | 110 | 2,384 | |||
Wealth and trust management | 623 | 520 | 462 | |||
Service charges on deposit accounts | 423 | 398 | 349 | |||
Increase in cash surrender value of BOLI | 333 | 337 | 292 | |||
Bank and purchase card, net | 513 | 242 | 560 | |||
Other | 1,832 | 2,832 | 1,675 | |||
Total noninterest income | 308 | 7,825 | 9,736 | |||
Noninterest expense: | ||||||
Salaries and employee benefits | 14,932 | 16,045 | 14,518 | |||
Occupancy and equipment | 1,303 | 1,524 | 1,913 | |||
Data processing | 896 | 1,106 | 1,131 | |||
Legal and regulatory filings | 363 | 447 | 2,753 | |||
Advertising and marketing | 183 | 297 | 337 | |||
Communications | 1,436 | 1,173 | 1,171 | |||
Audit and accounting fees | 295 | 1,155 | 503 | |||
FDIC insurance | 1,817 | 1,377 | 1,246 | |||
Intangible amortization | 276 | 287 | 335 | |||
Other contractual services | 1,760 | 1,717 | 3,218 | |||
Other taxes and assessments | 588 | 943 | 803 | |||
Regulatory remediation | 1,397 | 2,644 | 2,388 | |||
Other | 4,098 | 3,759 | 3,736 | |||
Total noninterest expense | 29,344 | 32,474 | 34,052 | |||
Loss before income taxes | (12,051) | (3,300) | (10,439) | |||
Income tax benefit | (616) | (407) | (1,826) | |||
Net loss | $ (11,435) | $ (2,893) | $ (8,613) | |||
Dividends on preferred stock | 150 | — | — | |||
Net loss attributable to common shareholders | $ (11,585) | $ (2,893) | $ (8,613) | |||
Basic and diluted loss per common share | $ (0.47) | $ (0.15) | $ (0.45) | |||
Blue Ridge Bankshares, Inc. | ||||
Consolidated Statements of Income (unaudited) | ||||
For the Six Months Ended | ||||
As restated | ||||
(Dollars in thousands, except per common share data) | June 30, 2024 | June 30, 2023 | ||
Interest income: | ||||
Interest and fees on loans | $ 74,542 | $ 75,457 | ||
Interest on taxable securities | 4,837 | 5,171 | ||
Interest on nontaxable securities | 122 | 186 | ||
Interest on deposit accounts and federal funds sold | 3,661 | 2,536 | ||
Total interest income | 83,162 | 83,350 | ||
Interest expense: | ||||
Interest on deposits | 35,757 | 25,955 | ||
Interest on subordinated notes | 1,112 | 1,100 | ||
Interest on FHLB and FRB borrowings | 5,859 | 7,209 | ||
Total interest expense | 42,728 | 34,264 | ||
Net interest income | 40,434 | 49,086 | ||
Provision for credit losses - loans | 3,600 | 9,503 | ||
Recovery of credit losses - unfunded commitments | (1,500) | (1,000) | ||
Total provision for credit losses | 2,100 | 8,503 | ||
Net interest income after provision for credit losses | 38,334 | 40,583 | ||
Noninterest income: | ||||
Fair value adjustments of other equity investments | (8,544) | (332) | ||
Residential mortgage banking income | 5,754 | 6,344 | ||
Mortgage servicing rights | 2,749 | (746) | ||
Gain on sale of government guaranteed loans | 121 | 4,793 | ||
Wealth and trust management | 1,143 | 894 | ||
Service charges on deposit accounts | 821 | 692 | ||
Increase in cash surrender value of BOLI | 670 | 574 | ||
Bank and purchase card, net | 755 | 900 | ||
Other | 4,664 | 3,900 | ||
Total noninterest income | 8,133 | 17,019 | ||
Noninterest expense: | ||||
Salaries and employee benefits | 30,977 | 29,807 | ||
Occupancy and equipment | 2,827 | 3,482 | ||
Data processing | 2,002 | 2,477 | ||
Legal and regulatory filings | 810 | 3,987 | ||
Advertising and marketing | 480 | 623 | ||
Communications | 2,609 | 2,302 | ||
Audit and accounting fees | 1,450 | 649 | ||
FDIC insurance | 3,194 | 1,975 | ||
Intangible amortization | 563 | 690 | ||
Other contractual services | 3,477 | 4,157 | ||
Other taxes and assessments | 1,531 | 1,605 | ||
Regulatory remediation | 4,041 | 3,522 | ||
Other | 7,857 | 7,623 | ||
Total noninterest expense | 61,818 | 62,899 | ||
Loss before income taxes | (15,351) | (5,297) | ||
Income tax benefit | (1,023) | (654) | ||
Net loss | $ (14,328) | $ (4,643) | ||
Dividends on preferred stock | 150 | — | ||
Net loss attributable to common shareholders | $ (14,478) | $ (4,643) | ||
Basic and diluted loss per common share | $ (0.66) | $ (0.25) | ||
Quarter Summary of Selected Financial Data (unaudited) | ||||||||||
As of and for the Three Months Ended | ||||||||||
As restated | ||||||||||
(Dollars and shares in thousands, except per common share data) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||
Income Statement Data: | 2024 | 2024 | 2023 | 2023 | 2023 | |||||
Interest income | $ 40,631 | $ 42,531 | $ 43,160 | $ 42,485 | $ 42,460 | |||||
Interest expense | 20,546 | 22,182 | 21,397 | 20,293 | 18,570 | |||||
Net interest income | 20,085 | 20,349 | 21,763 | 22,192 | 23,890 | |||||
Provision for (recovery of) credit losses | 3,100 | (1,000) | 2,770 | 11,050 | 10,013 | |||||
Net interest income after provision for loan losses | 16,985 | 21,349 | 18,993 | 11,142 | 13,877 | |||||
Noninterest income | 308 | 7,825 | 4,107 | 7,415 | 9,736 | |||||
Noninterest expenses, excluding goodwill impairment | 29,344 | 32,474 | 30,583 | 37,795 | 34,052 | |||||
Goodwill impairment | — | — | — | 26,826 | — | |||||
Loss before income taxes | (12,051) | (3,300) | (7,483) | (46,064) | (10,439) | |||||
Income tax benefit | (616) | (407) | (1,724) | (4,693) | (1,826) | |||||
Net loss | (11,435) | (2,893) | (5,759) | (41,371) | (8,613) | |||||
Dividends on preferred stock | 150 | — | — | — | — | |||||
Net loss attributable to common shareholders | (11,585) | (2,893) | (5,759) | (41,371) | (8,613) | |||||
Per Common Share Data: | ||||||||||
Loss per common share - basic and diluted | $ (0.47) | $ (0.15) | $ (0.30) | $ (2.18) | $ (0.45) | |||||
Book value per common share | 4.15 | 9.24 | 9.69 | 9.53 | 12.21 | |||||
Tangible book value per common share - Non-GAAP | 4.10 | 9.04 | 9.47 | 9.30 | 10.55 | |||||
Balance Sheet Data: | ||||||||||
Total assets | $ 2,933,072 | $ 3,076,187 | $ 3,117,554 | $ 3,262,713 | $ 3,214,424 | |||||
Average assets | 3,085,137 | 3,164,932 | 3,165,886 | 3,249,112 | 3,277,283 | |||||
Average interest-earning assets | 2,886,186 | 2,966,491 | 2,979,065 | 3,038,795 | 3,064,104 | |||||
Loans held for investment | 2,259,279 | 2,394,089 | 2,430,947 | 2,446,370 | 2,454,431 | |||||
Allowance for credit losses | 28,036 | 35,025 | 35,893 | 49,631 | 38,567 | |||||
Purchase accounting adjustments (discounts) on acquired loans | 4,408 | 4,873 | 5,117 | 5,831 | 6,381 | |||||
Loans held for sale | 54,377 | 34,902 | 46,337 | 69,640 | 64,102 | |||||
Securities available for sale, at fair value | 307,427 | 314,394 | 321,081 | 313,930 | 340,617 | |||||
Noninterest-bearing demand deposits | 470,128 | 496,375 | 506,248 | 572,969 | 575,989 | |||||
Fintech Banking-as-a-Service ("BaaS") deposits | 172,456 | 272,973 | 370,968 | 493,009 | 468,719 | |||||
Total deposits | 2,325,839 | 2,465,776 | 2,566,032 | 2,776,151 | 2,613,094 | |||||
Subordinated notes, net | 39,822 | 39,838 | 39,855 | 39,871 | 39,888 | |||||
FHLB and FRB advances | 202,900 | 345,000 | 275,000 | 215,000 | 284,100 | |||||
Average interest-bearing liabilities | 2,228,071 | 2,411,683 | 2,362,774 | 2,354,360 | 2,346,722 | |||||
Total stockholders' equity | 325,614 | 180,906 | 185,989 | 182,837 | 231,271 | |||||
Average stockholders' equity | 318,042 | 183,901 | 223,840 | 238,530 | 257,117 | |||||
Weighted average common shares outstanding - basic | 24,477 | 19,178 | 19,033 | 19,015 | 18,851 | |||||
Weighted average common shares outstanding - diluted | 24,477 | 19,178 | 19,033 | 19,015 | 18,851 | |||||
Financial Ratios: | ||||||||||
Return on average assets (1) | -1.48 % | -0.37 % | -0.73 % | -5.09 % | -1.05 % | |||||
Return on average equity (1) | -14.38 % | -6.29 % | -10.29 % | -69.38 % | -13.40 % | |||||
Total loan to deposit ratio | 99.5 % | 98.5 % | 96.5 % | 90.6 % | 96.4 % | |||||
Held for investment loan-to-deposit ratio | 97.1 % | 97.1 % | 94.7 % | 88.1 % | 93.9 % | |||||
Fintech BaaS deposits to total deposits ratio | 7.4 % | 11.1 % | 14.5 % | 17.8 % | 17.9 % | |||||
Net interest margin (1) | 2.79 % | 2.75 % | 2.92 % | 2.92 % | 3.12 % | |||||
Cost of deposits (1) | 2.84 % | 2.85 % | 2.73 % | 2.46 % | 2.21 % | |||||
Cost of funds (1) | 3.02 % | 3.03 % | 2.91 % | 2.73 % | 2.49 % | |||||
Efficiency ratio | 143.9 % | 115.3 % | 118.2 % | 127.7 % | 101.3 % | |||||
Regulatory remediation expenses | 1,397 | 2,644 | 3,155 | 3,782 | 2,388 | |||||
Capital and Asset Quality Ratios: | ||||||||||
Average stockholders' equity to average assets | 10.3 % | 5.8 % | 7.1 % | 7.3 % | 7.8 % | |||||
Allowance for credit losses to loans held for investment | 1.24 % | 1.46 % | 1.48 % | 2.03 % | 1.57 % | |||||
Ratio of net charge-offs to average loans outstanding (1) | 1.81 % | 0.14 % | 2.84 % | 0.09 % | 1.28 % | |||||
Nonperforming loans to total assets | 1.57 % | 1.73 % | 2.02 % | 2.51 % | 2.54 % | |||||
Nonperforming assets to total assets | 1.57 % | 1.73 % | 2.02 % | 2.51 % | 2.54 % | |||||
Nonperforming loans to total loans | 1.99 % | 2.19 % | 2.55 % | 3.25 % | 3.41 % | |||||
Reconciliation of Non-GAAP Financial Measures (unaudited): | ||||||||||
Tangible Common Equity: | ||||||||||
Total stockholders' equity | $ 325,614 | $ 180,906 | $ 185,989 | $ 182,837 | $ 231,271 | |||||
Less: preferred stock (including additional paid-in capital) | (20,605) | — | — | — | — | |||||
Common stockholders' equity | $ 305,009 | $ 180,906 | $ 185,989 | $ 182,837 | $ 231,271 | |||||
Less: Goodwill and other intangibles, net of deferred tax liability (2) | (3,552) | (3,913) | (4,179) | (4,286) | (31,427) | |||||
Tangible common equity (Non-GAAP) | $ 301,456 | $ 176,993 | $ 181,810 | $ 178,551 | $ 199,844 | |||||
Total common shares outstanding | 73,504 | 19,584 | 19,198 | 19,192 | 18,934 | |||||
Book value per common share | $ 4.15 | $ 9.24 | $ 9.69 | $ 9.53 | $ 12.21 | |||||
Tangible book value per common share (Non-GAAP) | 4.10 | 9.04 | 9.47 | 9.30 | 10.55 | |||||
Tangible Common Equity to Tangible Total Assets | ||||||||||
Total assets | $ 2,933,072 | $ 3,076,187 | $ 3,117,554 | $ 3,262,713 | $ 3,214,424 | |||||
Less: Goodwill and other intangibles, net of deferred tax liability (2) | (3,552) | (3,913) | (4,179) | (4,286) | (31,427) | |||||
Tangible total assets (Non-GAAP) | $ 2,929,520 | $ 3,072,274 | $ 3,113,375 | $ 3,258,427 | $ 3,182,997 | |||||
Tangible common equity (Non-GAAP) | $ 301,456 | $ 176,993 | $ 181,810 | $ 178,551 | $ 199,844 | |||||
Tangible common equity to tangible total assets (Non-GAAP) | 10.3 % | 5.8 % | 5.8 % | 5.5 % | 6.3 % | |||||
(1) Annualized. | ||||||||||
(2) Excludes mortgage servicing rights. | ||||||||||
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SOURCE Blue Ridge Bankshares, Inc.
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