Blue Ridge Bankshares, Inc. Announces 2024 Third Quarter Results
Blue Ridge Bankshares (NYSE American: BRBS) reported Q3 2024 net income of $0.9 million ($0.01 per diluted share), compared to a net loss of $11.4 million in Q2 2024. The quarter included a $6.6 million after-tax recovery of credit losses. The company is exiting fintech banking-as-a-service operations, with fintech deposits reduced to 3% of total deposits from 18% year-over-year. Noninterest expense decreased by 10% from Q2 and 30% year-over-year. The bank's nonperforming loans improved to 1.09% of total assets, down from 1.40% in Q2. Net interest income was $19.1 million, with net interest margin at 2.74%.
Blue Ridge Bankshares (NYSE American: BRBS) ha registrato un utile netto di 0,9 milioni di dollari nel terzo trimestre del 2024 (0,01 dollari per azione diluita), rispetto a una perdita netta di 11,4 milioni di dollari nel secondo trimestre del 2024. Nel trimestre è stata inclusa una ripresa delle perdite sui crediti dopo le tasse di 6,6 milioni di dollari. L'azienda sta uscendo dalle operazioni di banking-as-a-service nel settore fintech, con depositi fintech ridotti al 3% del totale dei depositi, rispetto al 18% dell'anno precedente. Le spese non legate agli interessi sono diminuite del 10% rispetto al secondo trimestre e del 30% su base annua. I prestiti non performanti della banca sono migliorati all'1,09% del totale degli attivi, in calo dall'1,40% nel secondo trimestre. L'utile netto da interessi è stato di 19,1 milioni di dollari, con un margine d'interesse netto del 2,74%.
Blue Ridge Bankshares (NYSE American: BRBS) reportó una ganancia neta de 0,9 millones de dólares en el tercer trimestre de 2024 (0,01 dólares por acción diluida), en comparación con una pérdida neta de 11,4 millones de dólares en el segundo trimestre de 2024. El trimestre incluyó una recuperación de pérdidas crediticias después de impuestos de 6,6 millones de dólares. La compañía está saliendo de las operaciones de banking-as-a-service en el sector fintech, reduciendo los depósitos fintech al 3% del total de depósitos, frente al 18% del año anterior. Los gastos no relacionados con intereses disminuyeron un 10% desde el segundo trimestre y un 30% interanual. Los préstamos no rentables del banco mejoraron al 1,09% del total de activos, bajando del 1,40% en el segundo trimestre. Los ingresos netos por intereses fueron de 19,1 millones de dólares, con un margen de interés neto del 2,74%.
블루 리지 뱅크셰어스 (NYSE American: BRBS)는 2024년 3분기 순이익이 90만 달러(희석주당 0.01 달러)에 달했다고 보고했으며, 이는 2024년 2분기 순손실 1140만 달러와 비교됩니다. 이 분기에는 세후 신용 손실 회복이 660만 달러 포함되었습니다. 이 회사는 핀테크 뱅킹-as-a-service 운영에서 철수하고 있으며, 핀테크 예금은 전년 대비 18%에서 전체 예금의 3%로 감소했습니다. 비이자 비용은 2분기 대비 10%, 전년 대비 30% 감소했습니다. 은행의 부실채권 비율은 전체 자산의 1.09%로 개선되었으며, 이는 2분기의 1.40%에서 감소한 수치입니다. 순 이자 수익은 1910만 달러로, 순 이자 마진은 2.74%입니다.
Blue Ridge Bankshares (NYSE American: BRBS) a déclaré un revenu net de 0,9 million de dollars au troisième trimestre 2024 (0,01 dollar par action diluée), contre une perte nette de 11,4 millions de dollars au deuxième trimestre 2024. Ce trimestre a inclus une reprise d'impôts sur les pertes de créances de 6,6 millions de dollars. L'entreprise se retire des opérations de banking-as-a-service dans le secteur fintech, les dépôts fintech ayant été réduits à 3 % du total des dépôts, contre 18 % l'année précédente. Les dépenses non liées aux intérêts ont diminué de 10 % par rapport au deuxième trimestre et de 30 % d'une année sur l'autre. Les prêts non performants de la banque se sont améliorés pour atteindre 1,09 % des actifs totaux, contre 1,40 % au deuxième trimestre. Le revenu net d'intérêts s'est élevé à 19,1 millions de dollars, avec une marge d'intérêt nette de 2,74 %.
Blue Ridge Bankshares (NYSE American: BRBS) meldete im dritten Quartal 2024 einen Nettogewinn von 0,9 Millionen Dollar (0,01 Dollar pro verwässerter Aktie), verglichen mit einem Nettoverlust von 11,4 Millionen Dollar im zweiten Quartal 2024. Im Quartal wurde eine nach Steuer bereinigte Rückgewinnung von Kreditverlusten in Höhe von 6,6 Millionen Dollar berücksichtigt. Das Unternehmen zieht sich aus den Banking-as-a-Service-Operationen im Fintech-Bereich zurück, wobei Fintech-Einlagen im Vergleich zum Vorjahr von 18% auf 3% der Gesamteinlagen gesenkt wurden. Die nichtzinstrlichen Aufwendungen sanken im Vergleich zum zweiten Quartal um 10% und im Jahresvergleich um 30%. Die not leidenden Kredite der Bank verbesserten sich auf 1,09% der Gesamtaktiva, gegenüber 1,40% im zweiten Quartal. Die Zinsen netto betrugen 19,1 Millionen Dollar, mit einer Nettozinsmarge von 2,74%.
- Net income improved to $0.9M in Q3 2024 from -$11.4M loss in Q2 2024
- Noninterest expense decreased 10% quarter-over-quarter
- Nonperforming loans reduced to 1.09% of total assets from 1.40%
- $6.6M after-tax recovery of credit losses
- Core deposits grew by $74M in Q3, excluding fintech-related and wholesale deposits
- Net interest income declined by $1.0M from previous quarter
- Net interest margin decreased to 2.74% from 2.79%
- Cost of funds increased to 3.09% from 3.02% in Q2 2024
- Year-to-date net loss of $13.4M
- Loans held for investment decreased by $78.9M quarter-over-quarter
Insights
The Q3 2024 results show mixed signals with some positive developments amid ongoing challenges. The return to profitability with
- Nonperforming loans reduced to
1.09% of total assets from1.40% - Core deposit growth of
$74 million (excluding fintech-related) - Successful reduction in fintech BaaS deposits to
3% from18% YoY - Capital ratios strengthened, with tier 1 leverage at
11.56%
However, challenges persist with net interest margin compression to
The operational restructuring shows meaningful progress in risk reduction and efficiency improvements. Noninterest expenses decreased by
Performance reflects improvement across a range of metrics such as deposit growth, noninterest expense reduction, and nonperforming asset reduction
Bank to complete exit from fintech banking-as-a-service depository operations by the end of 2024
Regulatory remediation efforts on track
For the quarter ended September 30, 2024, the Company reported net income of
For the year-to-date period ended September 30, 2024, the Company reported a net loss of
A Message From Blue Ridge Bankshares, Inc. President and CEO, G. William "Billy" Beale:
"Our 2024 third quarter
"Today, we are focused on three vital areas of initiative: our remediation work in response to the directives of our primary regulator; our initiatives to improve operational efficiency across the organization; and third, positioning Blue Ridge Bank for future growth.
"During our third quarter, we advanced and generated additional momentum in all three areas. We are increasingly seeing the benefits of these initiatives in several key metrics that reflect a healthier Blue Ridge Bank:
- "With respect to our regulatory remediation work, we made additional progress in exiting our fintech banking-as-a-service ("BaaS") deposit operations. I am pleased to say that we remain ahead of schedule on this initiative and expect to be fully exited from this business by the end of the year. Consequently, deposits from fintech BaaS sources were down to only
3% of total deposits at quarter end. This is reduced from18% of total deposits on a year-over-year basis. - "The second area of initiative is our focus on operational efficiency. Over the next several quarters, we will be accelerating our efforts to drive new levels of efficiency across our entire organization. We have already begun to take some important steps down this path. For the third quarter, our noninterest expense was sequentially down nearly
10% from the second quarter and approximately30% lower than the third quarter of last year when excluding the goodwill impairment charge. - "The third vital area of initiative is pursuing profitable growth. Blue Ridge Bank's proximity to strong commercial and consumer markets and favorable demographic trends across
Virginia gives us opportunities we can take full advantage of. This combined with our capital levels necessary to fuel growth and our new commercial banking leader will help give us the ability to continue to drive deposit and to renew loan growth. Encouragingly, during the 2024 third quarter, we grew our deposits, excluding fintech-related and wholesale, by and by$74 million year-to-date. This is the third consecutive quarter we were able to grow this deposit base and lower our reliance on fintech-related deposits and wholesale funding.$144 million - "Alongside these initiatives has been our focus on improving the quality and strength of our lending portfolio, which we have heavily scrutinized over the past year. At the end of the third quarter, our nonperforming loans to total assets ratio was
1.1% . This is compared to1.4% as of the prior quarter-end and2.5% as of the third quarter of last year. Under the guidance of our credit risk leadership and revised loan policy, I believe we have a much tighter and stronger credit profile today.
"As we exit the fintech BaaS business, we have moved to reposition the balance sheet to reflect a more traditional community bank. This multi-year process will focus on growing deposits in our footprint, reducing the number of out-of-market loans, and decreasing dependency on brokered deposits. We have achieved good progress on all of these during 2024.
"As we head toward the end of the year, I'm confident that we will finish 2024 in a fundamentally stronger position than we began. I am hopeful that we will continue to see further progress in those key metrics that are the best gauge of the strategies we are pursuing. Lastly, I am grateful for the support of this leadership team, our employees, our newly constituted board of directors, and importantly, our shareholders."
Q3 2024 Highlights
(Comparisons for Third Quarter 2024 are relative to Second Quarter 2024 unless otherwise noted.)
Net Income:
- Net income for the quarter was
, or$0.9 million per diluted common share, compared to a net loss of$0.01 , or$11.4 million per diluted common share, for the prior quarter. Income before income taxes of$0.47 for the quarter included a$1.5 million recovery of credit losses resulting primarily from an$6.2 million recovery upon the completion of the previously mentioned specialty finance loan sale. The prior quarter loss before income taxes of$8.4 million included a$12.1 million provision for credit losses and an$3.1 million , non-cash, negative fair value adjustment of an equity investment the Company holds in a fintech company. Excluding the second quarter fair value adjustment and the provision for (or recovery of) credit losses, the Company's pre-tax income decreased by$8.5 million , with$4.4 million of the decline attributable to fair value adjustments and a loss on the sale of mortgage servicing rights ("MSRs"). Noninterest expenses for the quarter declined$5.9 million .$2.8 million
Asset Quality:
- Nonperforming loans, which include nonaccrual loans and loans past due 90 days or more and accruing interest, improved to
, or$32.1 million 1.09% of total assets, at quarter end compared to , or$41.2 million 1.40% of total assets, at the prior quarter end. The decline in nonperforming loans primarily reflects the third quarter sale of the previously noted specialty finance loan. - The recovery of credit losses was
for the quarter compared to a provision for credit losses of$6.2 million for the prior quarter. The recovery of credit losses was primarily attributable to an$3.1 million recovery from the sale of the previously mentioned specialty finance loan and lower reserve needs due to loan portfolio balance reductions, partially offset by higher specific reserves for certain purchased loans. The provision for credit losses in the prior quarter was related primarily to reserve needs for certain purchased loans and increased reserves for the non-guaranteed portion of government-guaranteed loans ("GGL"), which offset lower reserve needs due to loan portfolio balance reductions.$8.4 million - The allowance for credit losses ("ACL") as a percentage of total loans held for investment was
1.17% at quarter end compared to1.24% at the prior quarter end. The decline was primarily due to charge-offs of certain GGL and purchased loans in the current quarter. Net loan recoveries were in the quarter, which includes the$3.4 million recovery from the sale of the previously noted specialty finance loan. This recovery was the primary driver of the lower net loan (recovery) charge-off to average loans outstanding ratio (year-to-date annualized), which was (0.61)%, compared to$8.4 million 1.81% for the prior quarter.
Capital:
- The ratio of tangible common stockholders' equity to tangible total assets was
10.6% 1, compared to10.3% 1 at the prior quarter end. Tangible book value per common share ("TBV") was 1 compared to$4.25 1 at the prior quarter end. The improvement in these ratios was primarily due to a reduction in accumulated other comprehensive losses, driven by$4.10 in after-tax unrealized gains in the quarter on the Company's portfolio of securities available for sale, resulting from lower market interest rates. TBV at the end of the third and second quarters did not include the conversion of the Series C Preferred Stock shares into common shares, which conversion is at the option of the holder. The assumed conversion of these shares would result in a negative impact of$10.0 million and$0.31 on TBV as of September 30, 2024 and June 30, 2024, respectively.$0.29 - For the quarter ended September 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
11.56% ,15.68% ,15.68% , and16.64% , respectively, compared to11.02% ,14.19% ,14.19% , and15.18% , respectively, at the prior quarter end. Capital ratios for the Company at September 30, 2024 were tier 1 leverage ratio of11.46% , tier 1 risk-based capital ratio of15.58% , common equity tier 1 capital ratio of15.58% , and total risk-based capital ratio of19.26% . - As of September 30, 2024 and June 30, 2024, the Bank's tier 1 leverage and total risk-based capital ratios exceeded 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 minimum tier 1 leverage ratio of
10.00% and a total risk-based capital ratio of13.00% .
Net Interest Income / Net Interest Margin:
- Net interest income was
, a decline of$19.1 million from the prior quarter, primarily due to a decline in average balances of interest-earning assets, primarily loans held for investment, and the reversal of interest income due to loans placed on nonaccrual. This decline was partially offset by lower average balances of and rates paid on fintech-related deposits and lower average balances of wholesale funding. Net interest margin declined in the quarter to$1.0 million 2.74% from2.79% ; six basis points of the decline was due to loans placed on nonaccrual.
Noninterest Income / Noninterest Expense:
- Noninterest income for the quarter was
compared to$2.7 million for the prior quarter, which included the$0.3 million previously noted negative fair value adjustment for an equity investment. Excluding the fair value adjustment, lower noninterest income for the quarter was primarily due to a$8.5 million negative variance in fair value adjustment on MSRs, primarily due to changes in future interest rate expectations, and a$4.9 million loss on the sale of a portion of the Company's portfolio of MSRs. The Company expects to sell the majority of its remaining MSRs in the fourth quarter.$1.0 million - Noninterest expense for the quarter was
compared to$26.5 million in the prior quarter, a decrease of$29.3 million . The decrease was primarily due to lower salaries and employee benefits expense, lower regulatory remediation expenses, and lower Federal Deposit Insurance Corporation ("FDIC") insurance assessments. Salaries and employee benefits expense in the quarter reflected lower headcount, primarily in the Bank's GGL 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 submitted certain requirements under the Consent Order. Lower FDIC assessments in the quarter were primarily due to a lower assessment rate and a smaller balance sheet.$2.8 million
Income Tax:
- The effective income tax rate for the quarter was
38.8% compared to5.1% for the prior quarter. Income tax expense and the effective tax rate for the quarter reflected the vesting of restricted stock awards where the fair value of the underlying stock at the time of vesting was lower than that at award date and recognized for expense purposes. The income tax benefit and effective rate for the prior quarter included 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 increased to
from$2.94 billion at the prior quarter end, an increase of$2.93 billion . This increase was primarily due to higher cash and due from banks balances of$11.6 million at quarter end, primarily due to elevated deposit balances of a fintech lending partner ahead of its normal business cycle of early month fundings. This increase was partially offset by lower balances of loans held for investment and loans held for sale, which collectively declined$157.1 million in the quarter. Other asset balance declines included bank owned life insurance and MSRs, which declined$111.2 million and$27.5 million , respectively. The Company surrendered the majority of its bank owned life insurance policies in the second quarter and received a substantial portion of the proceeds in the third quarter, with the remaining amounts expected in the fourth quarter. Of the balance change in MSRs,$10.4 million was attributable to the sale of a portion of the MSRs portfolio, with the majority of the remaining MSRs expected to be sold in the fourth quarter. These actions, along with and in support of the exit of fintech BaaS depository operations, support the repositioning of the Bank towards a more traditional community bank model.$7.4 million - Loans held for investment were
at quarter end, a decrease of$2.18 billion from the prior quarter end, and$78.9 million from year-end 2023. The Company purposefully and selectively reduced balances of loans, primarily where borrowers did not represent in-market relationships.$250.5 million - Total deposit balances increased to
from$2.35 billion at the prior quarter end, an increase of$2.33 billion . Deposits, excluding fintech-related and wholesale deposits, increased$20.7 million in the quarter and$73.7 million in the year-to-date period. Brokered deposit balances declined$143.5 million in the quarter and$33.9 million in the year-to-date period. Estimated uninsured deposits as a percentage of total deposits were$84.7 million 16.8% at quarter end compared to17.9% at the prior quarter end and22.3% at year-end 2023. - Deposits related to fintech relationships were
at September 30, 2024, a decline of$187.5 million in the quarter and$19.2 million in the year-to-date period. Of the decline, fintech BaaS deposits decreased$278.4 million in the quarter, partially offset by an increase in fintech corporate deposits, including those of the previously noted fintech lending partner. For the year-to-date period, fintech BaaS deposits have declined by$108.8 million . Excluding brokered deposits, deposits related to fintech relationships represented$307.3 million 9.8% ,11.1% , and22.7% of total deposits at September 30, 2024, June 30, 2024, and December 31, 2023, respectively. - Sources of liquidity as of September 30, 2024, consisting of on-balance sheet cash, available credit under secured borrowing facilities, and unpledged securities available for sale, totaled approximately
, or$805.0 million 202.7% of uninsured deposits as of the same date.
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 recovery of 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 was prohibited from the acceptance, renewal, or rollover of brokered deposits, as a result of the Consent Order. In the third quarter, 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. The Bank expects to file another application for waiver of this prohibition in the fourth quarter. Brokered deposits at September 30, 2024 were
Noninterest-bearing deposits represented
The held for investment loan to deposit ratio was
About Blue Ridge Bankshares, Inc.:
Blue Ridge Bankshares, Inc. is the holding company for Blue Ridge Bank and BRB Financial Group. 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.
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 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 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, | ||
Assets | ||||
Cash and due from banks | $ 281,698 | $ 110,491 | ||
Restricted cash | 4,160 | 10,660 | ||
Federal funds sold | 2,910 | 4,451 | ||
Securities available for sale, at fair value | 314,784 | 321,081 | ||
Restricted equity investments | 20,891 | 18,621 | ||
Other equity investments | 4,525 | 12,905 | ||
Other investments | 21,344 | 29,467 | ||
Loans held for sale | 22,082 | 46,337 | ||
Loans held for investment, net of deferred fees and costs | 2,180,413 | 2,430,947 | ||
Less: allowance for credit losses | (25,453) | (35,893) | ||
Loans held for investment, net | 2,154,960 | 2,395,054 | ||
Accrued interest receivable | 13,171 | 14,967 | ||
Premises and equipment, net | 21,621 | 22,348 | ||
Right-of-use lease asset | 7,764 | 8,738 | ||
Bank owned life insurance | 14,953 | 48,453 | ||
Other intangible assets | 4,201 | 5,382 | ||
Mortgage servicing rights, net | 19,502 | 27,114 | ||
Deferred tax asset, net | 18,248 | 21,556 | ||
Other assets | 17,877 | 19,929 | ||
Total assets | $ 2,944,691 | $ 3,117,554 | ||
Liabilities and Stockholders' Equity | ||||
Deposits: | ||||
Noninterest-bearing demand | $ 459,793 | $ 506,248 | ||
Interest-bearing demand and money market deposits | 748,416 | 1,049,536 | ||
Savings | 103,820 | 117,923 | ||
Time deposits | 1,034,463 | 892,325 | ||
Total deposits | 2,346,492 | 2,566,032 | ||
FHLB borrowings | 190,000 | 210,000 | ||
FRB borrowings | — | 65,000 | ||
Subordinated notes, net | 39,806 | 39,855 | ||
Lease liability | 8,537 | 9,619 | ||
Other liabilities | 23,509 | 41,059 | ||
Total liabilities | 2,608,344 | 2,931,565 | ||
Commitments and contingencies | ||||
Stockholders' Equity: | ||||
Common stock, no par value; 150,000,000 and 50,000,000 shares | 300,763 | 197,636 | ||
Preferred stock, | 137 | — | ||
Additional paid-in capital | 50,155 | 252 | ||
Retained earnings | 19,775 | 33,157 | ||
Accumulated other comprehensive loss, net of tax | (34,483) | (45,056) | ||
Total stockholders' equity | 336,347 | 185,989 | ||
Total liabilities and stockholders' equity | $ 2,944,691 | $ 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 | ||||||
(Dollars in thousands, except per common share data) | September 30, 2024 | June 30, 2024 | September 30, 2023 | |||
Interest income: | ||||||
Interest and fees on loans | $ 34,747 | $ 36,196 | $ 38,551 | |||
Interest on taxable securities | 2,282 | 2,399 | 2,492 | |||
Interest on nontaxable securities | 62 | 62 | 72 | |||
Interest on deposit accounts and federal funds sold | 2,134 | 1,974 | 1,370 | |||
Total interest income | 39,225 | 40,631 | 42,485 | |||
Interest expense: | ||||||
Interest on deposits | 16,984 | 17,272 | 16,115 | |||
Interest on subordinated notes | 566 | 552 | 566 | |||
Interest on FHLB and FRB borrowings | 2,574 | 2,722 | 3,612 | |||
Total interest expense | 20,124 | 20,546 | 20,293 | |||
Net interest income | 19,101 | 20,085 | 22,192 | |||
(Recovery of) provision for credit losses - loans | (6,000) | 3,600 | 11,600 | |||
Recovery of credit losses - unfunded commitments | (200) | (500) | (550) | |||
Total (recovery of) provision for credit losses | (6,200) | 3,100 | 11,050 | |||
Net interest income after provision for credit losses | 25,301 | 16,985 | 11,142 | |||
Noninterest income: | ||||||
Fair value adjustments of other equity investments | 160 | (8,537) | 55 | |||
Residential mortgage banking income | 2,939 | 3,090 | 2,917 | |||
Mortgage servicing rights | (2,915) | 2,019 | 894 | |||
Loss on sale of mortgage servicing rights | (1,011) | — | — | |||
Wealth and trust management | 730 | 623 | 462 | |||
Service charges on deposit accounts | 417 | 423 | 365 | |||
Increase in cash surrender value of BOLI | 127 | 333 | 311 | |||
Bank and purchase card, net | 690 | 513 | 357 | |||
Loss on sale of securities available for sale | — | — | (649) | |||
Other | 1,602 | 1,844 | 2,703 | |||
Total noninterest income | 2,739 | 308 | 7,415 | |||
Noninterest expense: | ||||||
Salaries and employee benefits | 13,938 | 14,932 | 14,640 | |||
Occupancy and equipment | 1,394 | 1,303 | 1,475 | |||
Technology and communications | 2,767 | 2,332 | 2,891 | |||
Legal and regulatory filings | 614 | 363 | 912 | |||
Advertising and marketing | 222 | 183 | 350 | |||
Audit fees | 498 | 295 | 791 | |||
FDIC insurance | 1,130 | 1,817 | 1,322 | |||
Intangible amortization | 265 | 276 | 308 | |||
Other contractual services | 1,374 | 1,760 | 1,492 | |||
Other taxes and assessments | 759 | 588 | 802 | |||
Regulatory remediation | 357 | 1,397 | 3,782 | |||
Goodwill impairment | — | — | 26,826 | |||
ESOP litigation | — | — | 6,000 | |||
Other | 3,177 | 4,098 | 3,030 | |||
Total noninterest expense | 26,495 | 29,344 | 64,621 | |||
Income (loss) before income taxes | 1,545 | (12,051) | (46,064) | |||
Income tax expense (benefit) | 599 | (616) | (4,693) | |||
Net income (loss) | $ 946 | $ (11,435) | $ (41,371) | |||
Basic and diluted earnings (loss) per common share | $ 0.01 | $ (0.47) | $ (2.18) |
Blue Ridge Bankshares, Inc | ||||
Consolidated Statements of Income (unaudited) | ||||
For the Nine Months Ended | ||||
(Dollars in thousands, except per common share data) | September 30, 2024 | September 30, 2023 | ||
Interest income: | ||||
Interest and fees on loans | $ 109,289 | $ 114,009 | ||
Interest on taxable securities | 7,119 | 7,663 | ||
Interest on nontaxable securities | 184 | 257 | ||
Interest on deposit accounts and federal funds sold | 5,795 | 3,906 | ||
Total interest income | 122,387 | 125,835 | ||
Interest expense: | ||||
Interest on deposits | 52,741 | 42,070 | ||
Interest on subordinated notes | 1,677 | 1,666 | ||
Interest on FHLB andFRB borrowings | 8,433 | 10,821 | ||
Total interest expense | 62,851 | 54,557 | ||
Net interest income | 59,536 | 71,278 | ||
(Recovery of) provision for credit losses - loans | (2,400) | 21,103 | ||
Recovery of credit losses - unfunded commitments | (1,700) | (1,550) | ||
Total (recovery of) provision for credit losses | (4,100) | 19,553 | ||
Net interest income after provision for credit losses | 63,636 | 51,725 | ||
Noninterest income: | ||||
Fair value adjustments of other equity investments | (8,384) | (277) | ||
Residential mortgage banking income | 8,693 | 9,261 | ||
Mortgage servicing rights | (166) | 148 | ||
Loss on sale of mortgage servicing rights | (1,011) | — | ||
Gain on sale of government guaranteed loans | 131 | 4,799 | ||
Wealth and trust management | 1,873 | 1,356 | ||
Service charges on deposit accounts | 1,238 | 1,057 | ||
Increase in cash surrender value of BOLI | 797 | 885 | ||
Bank and purchase card, net | 1,444 | 1,257 | ||
Loss on sale of securities available for sale | (67) | (649) | ||
Other | 6,324 | 6,597 | ||
Total noninterest income | 10,872 | 24,434 | ||
Noninterest expense: | ||||
Salaries and employee benefits | 44,918 | 44,447 | ||
Occupancy and equipment | 4,221 | 4,957 | ||
Technology and communications | 7,378 | 7,670 | ||
Legal and regulatory filings | 1,424 | 4,899 | ||
Advertising and marketing | 701 | 973 | ||
Audit fees | 1,948 | 1,440 | ||
FDIC insurance | 4,324 | 3,297 | ||
Intangible amortization | 828 | 998 | ||
Other contractual services | 4,851 | 5,649 | ||
Other taxes and assessments | 2,290 | 2,407 | ||
Regulatory remediation | 4,398 | 7,304 | ||
Goodwill impairment | — | 26,826 | ||
ESOP litigation | — | 6,000 | ||
Other | 11,033 | 10,653 | ||
Total noninterest expense | 88,314 | 127,520 | ||
Loss before income taxes | (13,806) | (51,361) | ||
Income tax benefit | (424) | (5,347) | ||
Net loss | $ (13,382) | $ (46,014) | ||
Basic and diluted loss per common share | $ (0.34) | $ (2.43) |
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) | September 30, | June 30, | March 31, | December 31, | September 30, | |||||
Income Statement Data: | 2024 | 2024 | 2024 | 2023 | 2023 | |||||
Interest income | $ 39,225 | $ 40,631 | $ 42,531 | $ 43,160 | $ 42,485 | |||||
Interest expense | 20,124 | 20,546 | 22,182 | 21,397 | 20,293 | |||||
Net interest income | 19,101 | 20,085 | 20,349 | 21,763 | 22,192 | |||||
(Recovery of) provision for credit losses | (6,200) | 3,100 | (1,000) | 2,770 | 11,050 | |||||
Net interest income after provision for credit losses | 25,301 | 16,985 | 21,349 | 18,993 | 11,142 | |||||
Noninterest income | 2,739 | 308 | 7,825 | 4,107 | 7,415 | |||||
Noninterest expenses, excluding goodwill impairment | 26,495 | 29,344 | 32,474 | 30,583 | 37,795 | |||||
Goodwill impairment | — | — | — | — | 26,826 | |||||
Income (loss) before income taxes | 1,545 | (12,051) | (3,300) | (7,483) | (46,064) | |||||
Income tax expense (benefit) | 599 | (616) | (407) | (1,724) | (4,693) | |||||
Net income (loss) | 946 | (11,435) | (2,893) | (5,759) | (41,371) | |||||
Per Common Share Data: | ||||||||||
Earnings (loss) per common share - basic and diluted | $ 0.01 | $ (0.47) | $ (0.15) | $ (0.30) | $ (2.18) | |||||
Book value per common share | 4.30 | 4.15 | 9.24 | 9.69 | 9.53 | |||||
Tangible book value per common share - Non-GAAP | 4.25 | 4.10 | 9.04 | 9.47 | 9.30 | |||||
Balance Sheet Data: | ||||||||||
Total assets | $ 2,944,691 | $ 2,933,072 | $ 3,076,187 | $ 3,117,554 | $ 3,262,713 | |||||
Average assets | 2,967,774 | 3,084,643 | 3,164,932 | 3,165,886 | 3,249,229 | |||||
Average interest-earning assets | 2,796,116 | 2,886,186 | 2,966,491 | 2,979,065 | 3,038,795 | |||||
Loans held for investment | 2,180,413 | 2,259,279 | 2,394,089 | 2,430,947 | 2,446,370 | |||||
Allowance for credit losses | 25,453 | 28,036 | 35,025 | 35,893 | 49,631 | |||||
Purchase accounting adjustments (discounts) on acquired loans | 4,162 | 4,408 | 4,873 | 5,117 | 5,831 | |||||
Loans held for sale | 22,082 | 54,377 | 34,902 | 46,337 | 69,640 | |||||
Securities available for sale, at fair value | 314,784 | 307,427 | 314,394 | 321,081 | 313,930 | |||||
Noninterest-bearing demand deposits | 459,793 | 470,128 | 496,375 | 506,248 | 572,969 | |||||
Fintech Banking-as-a-Service ("BaaS") deposits | 63,674 | 172,456 | 272,973 | 370,968 | 493,009 | |||||
Total deposits | 2,346,492 | 2,325,839 | 2,465,776 | 2,566,032 | 2,776,151 | |||||
Subordinated notes, net | 39,806 | 39,822 | 39,838 | 39,855 | 39,871 | |||||
FHLB and FRB advances | 190,000 | 202,900 | 345,000 | 275,000 | 215,000 | |||||
Average interest-bearing liabilities | 2,121,402 | 2,228,071 | 2,411,683 | 2,362,774 | 2,354,360 | |||||
Total stockholders' equity | 336,347 | 325,614 | 180,906 | 185,989 | 182,837 | |||||
Average stockholders' equity | 326,880 | 318,042 | 183,901 | 223,840 | 238,530 | |||||
Weighted average common shares outstanding - basic | 73,366 | 24,477 | 19,178 | 19,033 | 19,015 | |||||
Weighted average common shares outstanding - diluted | 87,086 | 24,477 | 19,178 | 19,033 | 19,015 | |||||
Financial Ratios: | ||||||||||
Return on average assets (1) | 0.13 % | -1.48 % | -0.37 % | -0.73 % | -5.09 % | |||||
Return on average equity (1) | 1.16 % | -14.38 % | -6.29 % | -10.29 % | -69.38 % | |||||
Total loan to deposit ratio | 93.9 % | 99.5 % | 98.5 % | 96.5 % | 90.6 % | |||||
Held for investment loan-to-deposit ratio | 92.9 % | 97.1 % | 97.1 % | 94.7 % | 88.1 % | |||||
FintechBaaS deposits to total deposits ratio | 2.7 % | 7.4 % | 11.1 % | 14.5 % | 17.8 % | |||||
Net interest margin (1) | 2.74 % | 2.79 % | 2.75 % | 2.92 % | 2.92 % | |||||
Cost of deposits (1) | 2.91 % | 2.84 % | 2.85 % | 2.73 % | 2.46 % | |||||
Cost of funds (1) | 3.09 % | 3.02 % | 3.03 % | 2.91 % | 2.73 % | |||||
Efficiency ratio | 121.3 % | 143.9 % | 115.3 % | 118.2 % | 127.7 % | |||||
Regulatory remediation expenses | 357 | 1,397 | 2,644 | 3,155 | 3,782 | |||||
Capital and Asset Quality Ratios: | ||||||||||
Average stockholders' equity to average assets | 11.0 % | 10.3 % | 5.8 % | 7.1 % | 7.3 % | |||||
Allowance for credit losses to loans held for investment | 1.17 % | 1.24 % | 1.46 % | 1.48 % | 2.03 % | |||||
Ratio of net (recoveries) charge-offs to average loans outstanding (1) | -0.61 % | 1.81 % | 0.14 % | 2.84 % | 0.09 % | |||||
Nonperforming loans to total assets | 1.09 % | 1.40 % | 1.73 % | 2.02 % | 2.51 % | |||||
Nonperforming assets to total assets | 1.09 % | 1.40 % | 1.73 % | 2.02 % | 2.51 % | |||||
Nonperforming loans to total loans | 1.46 % | 1.78 % | 2.19 % | 2.55 % | 3.25 % | |||||
Reconciliation of Non-GAAP Financial Measures (unaudited): | ||||||||||
Tangible Common Equity: | ||||||||||
Total stockholders' equity | $ 336,347 | $ 325,614 | $ 180,906 | $ 185,989 | $ 182,837 | |||||
Less: preferred stock (including additional paid-in capital) | (20,605) | (20,605) | — | — | — | |||||
Common stockholders' equity | $ 315,742 | $ 305,009 | $ 180,906 | $ 185,989 | $ 182,837 | |||||
Less: Goodwill and other intangibles, net of deferred tax liability (2) | (3,281) | (3,552) | (3,913) | (4,179) | (4,286) | |||||
Tangible common equity (Non-GAAP) | $ 312,461 | $ 301,456 | $ 176,993 | $ 181,810 | $ 178,551 | |||||
Total common shares outstanding | 73,474 | 73,504 | 19,584 | 19,198 | 19,192 | |||||
Book value per common share | $ 4.30 | $ 4.15 | $ 9.24 | $ 9.69 | $ 9.53 | |||||
Tangible book value per common share (Non-GAAP) | 4.25 | 4.10 | 9.04 | 9.47 | 9.30 | |||||
Tangible Common Equity to Tangible Total Assets | ||||||||||
Total assets | $ 2,944,691 | $ 2,933,072 | $ 3,076,187 | $ 3,117,554 | $ 3,262,713 | |||||
Less: Goodwill and other intangibles, net of deferred tax liability (2) | (3,281) | (3,552) | (3,913) | (4,179) | (4,286) | |||||
Tangible total assets (Non-GAAP) | $ 2,941,410 | $ 2,929,520 | $ 3,072,274 | $ 3,113,375 | $ 3,258,427 | |||||
Tangible common equity (Non-GAAP) | $ 312,461 | $ 301,456 | $ 176,993 | $ 181,810 | $ 178,551 | |||||
Tangible common equity to tangible total assets (Non-GAAP) | 10.6 % | 10.3 % | 5.8 % | 5.8 % | 5.5 % | |||||
(1) Annualized | ||||||||||
(2) Excludes mortgage servicing rights |
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SOURCE Blue Ridge Bankshares, Inc.
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