Blue Ridge Bankshares, Inc. Announces Fourth Quarter and Full Year 2021 Results

Rhea-AI Summary

Blue Ridge Bankshares (NYSE: BRBS) reported strong financial results for Q4 and the full year 2021. The Company achieved a net income of $12.8 million in Q4, a significant increase from $6.8 million in Q3 2021 and $5.6 million in Q4 2020. For 2021, net income rose to $52.5 million compared to $17.7 million in 2020, boosted by a $19.2 million gain from the sale of PPP loans. Total assets grew to $2.67 billion, with deposits reaching $2.30 billion. However, the mortgage division faced profitability challenges amid pricing pressures.

Positive

• Q4 2021 net income rose to $12.8 million, up 88% from Q3 2021.
• 2021 full-year net income of $52.5 million, a significant increase from $17.7 million in 2020.
• Total assets increased to $2.67 billion, driven by the Bay Banks Merger.
• Loans held for investment (excluding PPP loans) rose to $1.78 billion, showing strong growth.

Negative

• Mortgage division profitability fell due to increased pricing pressures.
• Nonperforming loans increased to $16.1 million, reflecting a rise in credit quality concerns.

CHARLOTTESVILLE, Va., Jan. 27, 2022 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank") and BRB Financial Group, Inc., announced today financial results for the quarter and full year ended December 31, 2021.  For the fourth quarter of 2021, the Company reported net income of $12.8 million, or $0.68 earnings per diluted common share, compared to $6.8 million, or $0.36 earnings per diluted common share, for the third quarter of 2021, and $5.6 million, or $0.65 earnings per diluted common share, for the fourth quarter of 2020.  For the year ended December 31, 2021, the Company reported net income of $52.5 million, or $2.94 earnings per diluted common share, compared to $17.7 million, or $2.07 earnings per diluted common share, for 2020.  Earnings per diluted common share for all periods presented is reflective of the 3-for-2 stock split effective April 30, 2021.  Net income for 2021 included an after-tax gain of $19.2 million resulting from the second quarter of 2021 sale of over $700 million of loans originated under the Paycheck Protection Program ("PPP").  Net income for all periods presented also reflected merger-related expenses, as further discussed below. 

On January 31, 2021, the Company completed the merger of Bay Banks of Virginia, Inc. ("Bay Banks"), the holding company of Virginia Commonwealth Bank, into the Company.  Immediately following the completion of the merger, Virginia Commonwealth Bank was merged into Blue Ridge Bank (collectively, the "Bay Banks Merger").  Earnings for the year ended December 31, 2021 included the earnings of Bay Banks from the effective date of the merger. 

On January 20, 2022, the Company and FVCBankcorp, Inc. ("FVCB"), the parent company of FVCbank, jointly announced a mutual agreement to terminate their merger agreement, previously announced on July 14, 2021, pursuant to which the companies had agreed to combine in an all-stock merger of equals transaction.

Net income for the fourth and third quarters of 2021 included approximately $135 thousand and $1.1 million, respectively, in after-tax expenses related to the now-terminated FVCB merger, while earnings for the years ended December 31, 2021 and 2020 included approximately $9.4 million and $1.9 million, respectively, in after-tax merger-related expenses resulting from the completed Bay Banks Merger and now-terminated FVCB merger.

"We finished 2021 strong as we look ahead to continued momentum in 2022," said Brian K. Plum, President and Chief Executive Officer.  "In addition to double-digit loan growth in the quarter our lending pipeline is the strongest it's been in the bank's history.  We anticipate the strong resurgence of loan demand in our geographic markets will continue as activity normalizes following the pandemic."

"We've seen an acceleration of activity in our fintech division," Plum continued.  "Our partners are enjoying more opportunities with continued growth in digital bank adoption across segments and industries."

Lastly Plum noted "mortgage profitability fell more than anticipated as meaningful price pressures put a particular strain on our wholesale mortgage division.  We're taking steps to ensure an appropriate reaction to market conditions."

Fintech Business

The Company continues to grow its partnerships with fintech providers and ended the fourth quarter of 2021 with active partnerships, including Unit, Flexible Finance, Increase, Upgrade, Kashable, Jaris, Aeldra, Grow Credit, MentorWorks, and Marlette.  Loans held for sale and loans held for investment related to fintech relationships totaled approximately $25.5 million and $10.3 million as of December 31, 2021 and 2020, respectively, while deposits related to these relationships were approximately $189 million and $42 million as of December 31, 2021 and 2020, respectively. Interest and fee income related to fintech partnerships represented approximately $3.4 million and $680 thousand of revenue for the Company in 2021 and 2020, respectively.

Paycheck Protection Program

During 2021, the Company funded over 20,000 PPP loans with principal balances of approximately $730 million pursuant to the Economic Aid Act, passed at the end of December 2020 ("PPP2 loans").  Of the PPP2 loans, approximately 19,500 with principal balances of $712.6 million were sold on June 28, 2021.  Gross proceeds from the sale were $705.9 million, and the Company recorded a pre-tax gain of $24.3 million on the sale after giving effect to $30.9 million of unearned fees, net of deferred costs, and the sale discount.  As of December 31, 2021, the Company held $12.4 million of PPP2 loans net of unearned fees and deferred costs of $348 thousand.  PPP2 loans, if not forgiven, have a five-year term and a stated interest rate of 1%.  As of December 31, 2021, the Company held $18.0 million of PPP loans funded in 2020, pursuant to the Coronavirus Aid, Relief, and Economic Security Act ("PPP1 loans").  PPP1 loans, if not forgiven, have a one- or five-year term, depending on origination date, and a stated interest rate of 1%.

Processing fees, net of costs, and interest income earned by the Company for PPP loans in the amounts of $458 thousand, $713 thousand, and $4.0 million were recognized as interest income in the fourth and third quarters of 2021 and the fourth quarter of 2020, respectively.  These amounts for the years ended December 31, 2021 and 2020 were $17.3 million and $10.3 million, respectively.  Net processing fees for PPP loans are being recognized over the expected life of these loans, which is one to three years depending on the original loan balance.

The Company's PPP loans are primarily funded using the Federal Reserve Bank's Paycheck Protection Program Liquidity Facility ("PPPLF").  As of December 31, 2021, outstanding advances under the PPPLF were $17.9 million.  The PPPLF provided funding for the full amount and term of the PPP loans at a fixed annual cost of 0.35%.  PPP loans do not count toward bank regulatory capital ratios. 

Mortgage Division

The Company's mortgage division, which consists of a retail division operating as Monarch Mortgage and a wholesale division operating as LenderSelect Mortgage Group, recorded net income of $15 thousand and $1.6 million for the fourth and third quarters of 2021, respectively.  Net income contributed by the Company's mortgage division was $4.7 million and $11.9 million for the years ended December 31, 2021 and 2020, respectively.  The decline in net income in 2021 compared to 2020 was primarily attributable to lower pricing of mortgages sold to the secondary market.  Mortgage volumes for the fourth and the third quarters of 2021 were $234.5 million and $295.9 million, respectively.  Noninterest expenses recorded for the Company's mortgage division were $7.2 million and $8.1 million for the fourth and third quarters of 2021, respectively. 

Balance Sheet

The Company reported total assets of $2.67 billion at December 31, 2021, an increase of $1.17 billion from $1.50 billion at December 31, 2020.  The increase in total assets was primarily due to the Bay Banks Merger, which increased assets by $1.22 billion at the effective date of the merger.  Loans held for investment, excluding PPP loans, increased $1.05 billion to $1.78 billion at December 31, 2021 from $728.2 million at December 31, 2020.  Loan growth, excluding PPP loans, in the fourth quarter of 2021 totaled $52.3 million, an annualized growth rate of 12%.

Total deposits at December 31, 2021 were $2.30 billion, an increase of $1.35 billion from December 31, 2020, of which $1.03 billion were assumed in the Bay Banks Merger at the effective date of the merger.  The Company's expanding relationships with fintech partners have resulted in approximately $147 million of deposit growth in the year ended December 31, 2021.

As previously noted, the majority of PPP loans were funded through the PPPLF, resulting in a $263.8 million decrease in Federal Reserve Bank of Richmond ("FRB") advances in 2021.  The Company reduced $105.0 million of advances from the Federal Home Loan Bank of Atlanta ("FHLB") in the third and fourth quarters of 2021.  In connection with the reduction of FHLB advances, the Company terminated interest rate swaps associated with these advances, as further discussed below.  Additionally, the Company redeemed its outstanding subordinated notes with initial aggregate principal balances of $10.0 million and $7.0 million in the second and third quarters of 2021, respectively. The Company assumed $31.9 million of subordinated debt in the Bay Banks Merger as of the effective date of the merger.

Income Statement

Net Interest Income

Net interest income was $20.9 million for the fourth quarter of 2021 compared to $21.1 million for the third quarter of 2021 and $14.0 million for the fourth quarter of 2020.  Included in interest income for the fourth and third quarters of 2021 were approximately $458 thousand and $713 thousand in PPP loan fees, net of costs, and interest income, respectively, whereas in the fourth quarter of 2020, PPP loan fees, net of costs, and interest income were $4.0 million.  Funding costs for PPP loans under the PPPLF were approximately $46 thousand, $59 thousand, and $284 thousand for the fourth and third quarters of 2021 and fourth quarter of 2020, respectively.  Accretion of acquired loan discounts included in interest income in the fourth and third quarters of 2021 was $765 thousand and $112 thousand, respectively, and amortization of purchase accounting adjustments on assumed time deposits and borrowings reducing interest expense was $709 thousand and $886 thousand in the same respective periods.  

Net interest income was $92.5 million for the year ended December 31, 2021 compared to $44.5 million for 2020.  Net interest income for 2021 included PPP loan fees, net of costs, and interest income of $17.3 million and PPP loan funding costs of $791 thousand, while these amounts in 2020 were $10.3 million and $784 thousand, respectively.  Interest income related to accretion of acquired loans was $2.1 million and $1.1 million for the years ended December 31, 2021 and 2020, respectively.  Amortization of purchase accounting adjustments on assumed time deposits and borrowings, which reduced interest expense, was $3.3 million and a negligible amount for the same respective periods. 

Net interest margin for the fourth quarter of 2021 was 3.39% compared to 3.32% for the third quarter of 2021 and 3.88% for the fourth quarter of 2020.  Net interest income from PPP loans had a 1, 1, and 25 basis point positive effect on the Company's net interest margin for the fourth and third quarters of 2021, and fourth quarter of 2020, respectively.  Additionally, accretion and amortization of purchase accounting adjustments had a 24 and 16 basis point positive effect on net interest margin for the fourth and third quarters of 2021, respectively.  Net interest margin for the years ended December 31, 2021 and 2020 was 3.51% and 3.49%, respectively.  Net interest income from PPP loans had an 18 and 12 basis point position effect on net interest margin in the years ended December 31, 2021 and 2020, respectively.  Accretion and amortization of purchase accounting adjustments had a 21 and 9 basis point positive effect in the same respective periods.

Continued pressure on asset yields experienced by the Company has been partially offset by the re-pricing of higher priced deposits, the reduction in higher cost subordinated notes, and the reduction of hedged FHLB advances.  Costs of deposits were 0.29% for both the fourth and third quarters of 2021 and 0.56% for the fourth quarter of 2020.  Total funding costs were 0.42%, 0.43%, and 0.67% for the same respective periods.

Provision for Loan Losses

The Company recorded a provision for loan losses of $117 thousand for the fourth quarter and the full year ended December 31, 2021 compared to provision expense of $2.4 million and $10.5 million for the same respective periods of 2020.  In 2020, the Company increased its allowance for loan losses through the application of a qualitative factor in response to potential credit losses as a result of the COVID-19 pandemic.  The decline in the Company's allowance for loan losses for the year ended December 31, 2021 was due to the release of the COVID-19 factor, as economic conditions improved, partially offset by organic loan growth, reserves for fintech-related loans, specific reserves for impaired loans, and reserve needs for loans that have migrated from the Company's acquired loan pools.

Noninterest Income

Noninterest income for the fourth quarter of 2021 was $22.2 million compared to $13.5 million and $18.0 million for the third quarter of 2021 and the fourth quarter of 2020, respectively.  Mortgage banking income, including mortgage servicing rights, contributed $5.9 million and $9.5 million of noninterest income in the fourth and third quarters of 2021, respectively, and $16.3 million in the fourth quarter of 2020.  During the fourth quarter of 2021, the Company realized gains of $6.2 million on the termination of interest rate swaps that hedged interest rates on certain FHLB advances.  Other income in the fourth and third quarters of 2021 included $5.7 million and $1.0 million, respectively, of fair value adjustments for the Company's investments, primarily in certain fintech companies.  Noninterest income for the year ended December 31, 2021 and 2020 was $88.0 million and $56.8 million, respectively.  Noninterest income in 2021 included the second quarter gain on the sale of PPP loans of $24.3 million.

Noninterest Expense

Noninterest expense for the fourth quarter of 2021 was $25.4 million compared to $25.6 million and $22.9 million for the third quarter of 2021 and fourth quarter of 2020, respectively.  Merger-related expenses for the fourth and third quarters of 2021 and the fourth quarter of 2020 were $171 thousand, $1.4 million, and $662 thousand, respectively.  Salaries and employee benefit expenses increased $692 thousand in the fourth quarter of 2021 from the third quarter of 2021, primarily due to greater incentive expenses recorded in the fourth quarter and greater headcount to support the growing fintech business, partially offset by lower costs incurred by the Company's mortgage division.  Noninterest expense for the year ended December 31, 2021 and 2020 was $112.1 million and $68.4 million, respectively.  Included in these amounts were merger-related expenses of $11.9 million and $2.4 million for the same respective periods.

Asset Quality

Nonperforming loans, which include nonaccrual loans and loans 90 days or more past due and accruing interest¹, totaled $16.1 million at December 31, 2021, representing an increase of $9.5 million from December 31, 2020.  The ratio of nonperforming loans to total assets was 0.60% as of December 31, 2021 and 0.44% as of December 31, 2020.  The Company's allowance for loan losses was $12.1 million at December 31, 2021, or 0.68% as a percentage of gross loans held for investment, excluding PPP loans, compared to 1.89% at December 31, 2020.  The Company holds no allowance for loan losses on PPP loans as they are fully guaranteed by the U.S. government.  The decrease in the allowance for loan losses as a percentage of gross loans held for investment since December 31, 2020 was primarily attributable to the loans acquired in the Bay Banks Merger, for which no allowance for loan losses carried over in the merger, as well as the release of the COVID-19 factor, noted previously.  Remaining acquired loan discounts related to loans acquired in the Company's completed mergers were $16.2 million as of December 31, 2021 compared to $1.2 million as of December 31, 2020. 

¹ Excludes purchased credit-impaired loans.

Capital

The Company previously announced that on January 5, 2022 its board of directors declared a $0.12 per common share quarterly dividend, payable January 31, 2022 to shareholders of record as of January 19, 2022.  Tangible book value per share, a non-GAAP (defined below) measure, was $13.01 and $10.03 as of December 31, 2021 and December 31, 2020, respectively.

Non-GAAP Financial Measures

The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry.  However, management uses certain non-GAAP measures to supplement the evaluation of the Company's performance.  Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses.  These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.  Reconciliations of GAAP to non-GAAP measures are included at the end of this release.

Forward-Looking Statements

This release of the Company contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company's beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan," or words or 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: (i) the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; (ii) geopolitical conditions, including acts or threats of terrorism, 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 in the United States and abroad; (iii) the effects of the COVID-19 pandemic, including the adverse impact on the Company's business and operations and on the Company's customers which may result, among other things, in increased delinquencies, defaults, foreclosures and losses on loans; (iv) the occurrence of significant natural disasters, including severe weather conditions, floods, health related issues, and other catastrophic events; (v) the Company's management of risks inherent in its real estate loan portfolio, 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; (vi) changes in consumer spending and savings habits; (vii) technological and social media changes; (viii) the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rate, market and monetary fluctuations; (ix) 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 the Company's subsidiary 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; (x) the impact of changes in financial services policies, laws and regulations, including laws, regulations and policies concerning taxes, banking, securities and insurance, and the application thereof by regulatory bodies; (xi) the impact of changes in laws, regulations and policies affecting the real estate industry; (xii) the effect of changes in accounting policies and practices, as may be adopted from time to time by bank regulatory agencies, the Securities and Exchange Commission (the "SEC"), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setting bodies; (xiii) the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; (xiv) the willingness of users to substitute competitors' products and services for the Company's products and services; (xv) deposit attrition, operating costs, customer losses and other disruptions to the Company's businesses as a result of the termination of the merger agreement with FVCB; (xvi) the outcome of any legal proceedings that may be instituted against the Company; (xvii) reputational risk and potential adverse reactions of the Company's customers, suppliers, employees or other business partners, including those resulting from the termination of the merger agreement with FVCB; (xviii) the effects of acquisitions the Company may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such transactions; (xix) changes in the level of the Company's nonperforming assets and charge-offs; (xx) the Company's involvement, from time to time, in legal proceedings and examination and remedial actions by regulators; (xxi) potential exposure to fraud, negligence, computer theft and cyber-crime; (xxii) the Company's ability to pay dividends; (xxiii) the Company's involvement as a participating lender in the PPP as administered through the U.S. Small Business Administration; and (xxiv) other risks and factors identified in the "Risk Factors" sections and elsewhere in documents the Company files from time to time with the SEC.

 

Blue Ridge Bankshares, Inc.
Consolidated Balance Sheets
(Dollars in thousands except share data)		(unaudited) December 31, 2021		December 31, 2020 (2)
Assets
Cash and due from banks		$           128,285		$           117,945
Federal funds sold		43,903		775
Securities available for sale, at fair value		371,459		109,475
Restricted and other equity investments		24,591		11,173
Other investments		13,643		6,565
Loans held for sale		124,301		152,931
Paycheck Protection Program loans, net of deferred fees and costs		30,406		288,533
Loans held for investment, net of deferred fees and costs		1,777,172		728,161
Less allowance for loan losses		(12,121)		(13,827)
Loans held for investment, net		1,765,051		714,334
Accrued interest receivable		9,573		5,428
Other real estate owned		157		—
Premises and equipment, net		26,661		14,831
Right-of-use asset		6,317		5,328
Bank owned life insurance		46,545		15,724
Goodwill		26,826		19,620
Other intangible assets		7,742		2,581
Mortgage derivative asset		1,876		5,293
Mortgage servicing rights, net		16,469		7,084
Mortgage brokerage receivable		4,064		8,516
Interest rate swap asset		199		1,716
Other assets		18,802		10,406
Total assets		$        2,666,870		$        1,498,258
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing demand		$           706,088		$           333,051
Interest-bearing demand and money market deposits		941,805		282,263
Savings		150,376		78,352
Time deposits		499,502		251,443
Total deposits		2,297,771		945,109
FHLB borrowings		10,111		115,000
FRB borrowings		17,901		281,650
Subordinated notes, net		39,986		24,506
Lease liability		7,651		5,506
Interest rate swap liability		199		2,735
Other liabilities		16,112		15,552
Total liabilities		2,389,731		1,390,058
Commitments and contingencies
Stockholders' Equity:
Common stock, no par value; 25,000,000 shares authorized; 18,774,082 and    8,577,932 shares issued and outstanding at December 31, 2021 and December 31, 2020,    respectively (1)		194,309		66,771
Additional paid-in capital		252		252
Retained earnings		85,982		40,688
Accumulated other comprehensive (loss) income		(3,632)		264
Total Blue Ridge Bankshares, Inc. stockholders' equity		276,911		107,975
Noncontrolling interest		228		225
Total stockholders' equity		277,139		108,200
Total liabilities and stockholders' equity		$        2,666,870		$        1,498,258
(1) Common stock as of the periods presented is reflective of the 3-for-2 stock split that was effective April 30, 2021.
(2) Derived from audited December 31, 2020 Consolidated Financial Statements.

 

Blue Ridge Bankshares, Inc.
Consolidated Statements of Income (unaudited)
		For the Three Months Ended
(Dollars in thousands except per share data)		December 31, 2021		September 30, 2021		December 31, 2020
Interest income:
Interest and fees on loans		$                         21,685		$                         22,294		$                         15,793
Interest on taxable securities		1,612		1,317		605
Interest on nontaxable securities		62		61		28
Interest on deposit accounts and federal funds sold		45		82		—
Total interest income		23,404		23,754		16,426
Interest expense:
Interest on deposits		1,593		1,622		1,357
Interest on subordinated notes		485		644		411
Interest on FHLB and FRB borrowings		448		364		645
Total interest expense		2,526		2,630		2,413
Net interest income		20,878		21,124		14,013
Provision for loan losses		117		—		2,375
Net interest income after provision for loan losses		20,761		21,124		11,638
Noninterest income:
Residential mortgage banking income, net		4,365		7,704		12,491
Mortgage servicing rights		1,493		1,827		3,843
Gain on termination of interest rate swaps		6,221		—		—
Gain on sale of government guaranteed loans		680		108		101
Wealth and trust management		439		499		—
Service charges on deposit accounts		391		376		236
Increase in cash surrender value of bank owned life insurance		253		278		112
Payroll processing		235		223		238
Bank and purchase card, net		709		497		231
Fair value adjustments of other investments		5,686		990		—
Other		1,731		1,016		767
Total noninterest income		22,203		13,518		18,019
Noninterest expense:
Salaries and employee benefits		15,466		14,774		15,532
Occupancy and equipment		1,540		1,743		898
Data processing		1,169		893		1,034
Legal, issuer, and regulatory filing		299		372		1,906
Advertising and marketing		414		452		258
Communications		1,012		761		185
Audit and accounting fees		227		195		158
FDIC insurance		175		487		181
Intangible amortization		461		500		217
Other contractual services		631		633		538
Other taxes and assessments		640		547		265
Merger-related		171		1,441		662
Other		3,240		2,839		1,060
Total noninterest expense		25,445		25,637		22,894
Income before income tax		17,519		9,005		6,763
Income tax expense		4,724		2,199		1,183
Net income		$                         12,795		$                           6,806		$                           5,580
Net (income) loss attributable to noncontrolling interest		(2)		4		1
Net income attributable to Blue Ridge Bankshares, Inc.		$                         12,793		$                           6,810		$                           5,581
Net income available to common stockholders		$                         12,793		$                           6,810		$                           5,581
Basic and diluted earnings per common share (EPS) (1)		$                             0.68		$                             0.36		$                             0.65
(1) EPS has been adjusted for all periods presented to reflect the 3-for-2 stock split that was effective April 30, 2021.

 

Blue Ridge Bankshares, Inc.
Consolidated Statements of Income (unaudited)
		For the Twelve Months Ended
(Dollars in thousands except per share data)		December 31, 2021		December 31, 2020
Interest income:
Interest and fees on loans		$                         97,933		$                         51,559
Interest on taxable securities		5,192		2,752
Interest on nontaxable securities		239		147
Interest on deposit accounts and federal funds sold		182		2
Total interest income		103,546		54,460
Interest expense:
Interest on deposits		6,437		6,246
Interest on subordinated notes		2,627		1,265
Interest on FHLB and FRB borrowings		2,001		2,439
Total interest expense		11,065		9,950
Net interest income		92,481		44,510
Provision for loan losses		117		10,450
Net interest income after provision for loan losses		92,364		34,060
Noninterest income:
Gain on sale of Paycheck Protection Program loans		24,315		—
Residential mortgage banking income, net		28,624		44,460
Mortgage servicing rights		8,398		7,084
Gain on termination of interest rate swaps		6,221		—
Gain on sale of government guaranteed loans		2,005		880
Wealth and trust management		2,373		—
Service charges on deposit accounts		1,464		905
Increase in cash surrender value of bank owned life insurance		932		390
Payroll processing		941		974
Bank and purchase card, net		1,805		714
Fair value adjustments of other investments		7,316		—
Other		3,561		1,418
Total noninterest income		87,955		56,825
Noninterest expense:
Salaries and employee benefits		61,891		45,418
Occupancy and equipment		6,508		3,551
Data processing		4,441		2,683
Legal, issuer, and regulatory filing		1,736		2,687
Advertising and marketing		1,403		776
Communications		2,814		721
Audit and accounting fees		902		436
FDIC insurance		1,014		749
Intangible amortization		1,867		825
Other contractual services		2,783		1,408
Other taxes and assessments		2,613		1,013
Merger-related		11,868		2,372
Other		12,302		5,748
Total noninterest expense		112,142		68,387
Income before income tax		68,177		22,498
Income tax expense		15,697		4,801
Net income		$                         52,480		$                         17,697
Net income attributable to noncontrolling interest		(3)		(1)
Net income attributable to Blue Ridge Bankshares, Inc.		$                         52,477		$                         17,696
Net income available to common stockholders		$                         52,477		$                         17,696
Basic and diluted earnings per common share (EPS) (1)		$                             2.94		$                             2.07
(1) EPS has been adjusted for all periods presented to reflect the 3-for-2 stock split that was effective April 30, 2021.

 

Blue Ridge Bankshares, Inc.
Five Quarter Summary of Selected Financial Data (unaudited)
		As of and for the Three Months Ended
		December 31,		September 30,		June 30,		March 31,		December 31,
(Dollars and shares in thousands, except share data)		2021		2021		2021		2021		2020
Income Statement Data:
Interest income		$               23,404		$               23,754		$               33,812		$               22,576		$               16,426
Interest expense		2,526		2,630		3,350		2,559		2,413
Net interest income		20,878		21,124		30,462		20,017		14,013
Provision for loan losses		117		—		—		—		2,375
Net interest income after provision for loan losses		20,761		21,124		30,462		20,017		11,638
Noninterest income		22,203		13,518		36,425		15,809		18,019
Noninterest expenses		25,445		25,637		30,548		30,512		22,894
Income before income taxes		17,519		9,005		36,339		5,314		6,763
Income tax expense		4,724		2,199		7,697		1,077		1,183
Net income		12,795		6,806		28,642		4,237		5,580
Net (income) loss attributable to noncontrolling interest		(2)		4		4		(9)		1
Net income attributable to Blue Ridge Bankshares, Inc.		$               12,793		$                 6,810		$               28,646		$                 4,228		$                 5,581
Per Common Share Data:
Earnings per share - basic (2)		$                   0.68		$                   0.36		$                   1.54		$                   0.28		$                   0.65
Earnings per share - diluted (2)		0.68		0.36		1.54		0.28		0.65
Dividends declared - post-stock split basis		—		0.240		—		0.195		—
Book value per common share (2)		14.76		14.48		14.32		12.88		12.61
Tangible book value per common share (2) - Non-GAAP		13.01		12.69		12.49		11.02		10.03
Balance Sheet Data:
Assets		$          2,666,870		$          2,699,302		$          2,764,730		$          3,167,374		$          1,498,258
Loans held for investment (including PPP loans)		1,807,578		1,771,531		1,832,847		2,289,374		1,016,694
Loans held for investment (excluding PPP loans)		1,777,172		1,724,883		1,702,654		1,691,748		728,161
Allowance for loan losses		12,121		12,614		13,007		13,402		13,827
Purchase accounting adjustments (discounts) on acquired loans		16,203		16,985		16,987		18,691		1,248
Loans held for sale		124,301		171,681		174,008		137,621		152,931
Securities		396,050		379,441		276,619		293,555		120,648
Deposits		2,297,771		2,200,204		2,190,571		2,140,118		945,109
Subordinated notes, net		39,986		40,503		46,149		54,588		24,506
FHLB and FRB advances		28,012		158,972		222,502		692,789		396,650
Total stockholders' equity		277,139		269,720		266,826		239,734		108,200
Average common shares outstanding - basic (2)		18,774		18,776		18,625		15,137		8,579
Average common shares outstanding - diluted (2)		18,795		18,799		18,646		15,154		8,579
Financial Ratios:
Return on average assets (1)		1.90%		0.95%		3.39%		0.68%		1.48%
Operating return on average assets (1) - Non-GAAP		1.92%		1.16%		3.50%		1.84%		1.62%
Return on average equity (1)		18.90%		11.58%		47.39%		8.69%		21.45%
Operating return on average equity (1) - Non-GAAP		19.10%		11.87%		49.01%		23.29%		23.46%
Total loan to deposit ratio		84.1%		88.3%		91.6%		113.4%		123.8%
Held for investment loan to deposit ratio		78.7%		80.5%		83.7%		107.0%		107.6%
Net interest margin (1)		3.39%		3.32%		3.82%		3.43%		3.88%
Cost of deposits (1)		0.29%		0.29%		0.29%		0.36%		0.56%
Efficiency ratio		59.1%		74.0%		45.7%		85.2%		70.9%
Operating efficiency ratio - Non-GAAP		58.7%		69.8%		43.8%		60.0%		68.8%
Merger-related expenses (MRE)		171		1,441		1,237		9,019		662
Capital and Asset Quality Ratios:
Average stockholders' equity to average assets		10.1%		9.7%		7.1%		7.9%		6.9%
Allowance for loan losses to loans held for investment, excluding PPP loans		0.68%		0.73%		0.76%		0.79%		1.90%
Nonperforming loans to total assets		0.60%		0.56%		0.43%		0.17%		0.44%
Nonperforming assets to total assets		0.61%		0.57%		0.45%		0.19%		0.44%

 

Blue Ridge Bankshares, Inc.
Five Quarter Summary of Selected Financial Data (unaudited)
		As of and for the Three Months Ended
		December 31,		September 30,		June 30,		March 31,		December 31,
(Dollars and shares in thousands, except share data)		2021		2021		2021		2021		2020
Reconciliation of Non-GAAP Financial Measures (unaudited):
Tangible Common Equity:
Total stockholders' equity		$             277,139		$             269,720		$             266,826		$             239,734		$             108,200
Less:  Goodwill and other intangibles, net of deferred tax liability (3)		(32,942)		(33,224)		(34,153)		(34,556)		(22,200)
Tangible common equity (Non-GAAP)		$             244,197		$             236,496		$             232,673		$             205,178		$               86,000
Total shares outstanding (2)		18,774		18,776		18,631		18,618		8,578
Book value per share		$                 14.76		$                 14.48		$                 14.32		$                 12.88		$                 12.61
Tangible book value per share (Non-GAAP)		13.01		12.69		12.49		11.02		10.03
Tangible stockholders' equity to tangible total assets
Total assets		$          2,666,870		$          2,699,302		$          2,764,730		$          3,167,374		$          1,498,258
Less:  Goodwill and other intangibles, net of deferred tax liability (3)		(32,942)		(33,224)		(34,153)		(34,556)		(22,200)
Tangible total assets (Non-GAAP)		$          2,633,928		$          2,666,078		$          2,730,577		$          3,132,818		$          1,476,058
Tangible common equity (Non-GAAP)		$             244,197		$             236,496		$             232,673		$             205,178		$               86,000
Tangible stockholders' equity to tangible total assets (Non-GAAP)		9.3%		8.9%		8.5%		6.5%		5.8%
Operating return on average assets (annualized)
Net income		$               12,795		$                 6,806		$               28,642		$                 4,237		$                 5,581
Add: MRE, after-tax basis (ATB) (4)		135		1,138		977		7,125		523
Operating net income (Non-GAAP)		$               12,930		$                 7,944		$               29,619		$               11,362		$                 6,104
Average assets		$          2,687,204		$          2,749,909		$          3,383,015		$          2,475,912		$          1,510,779
Operating return on average assets (annualized) (Non-GAAP)		1.92%		1.16%		3.50%		1.84%		1.62%
Operating return on average equity (annualized)
Net income		$               12,795		$                 6,806		$               28,642		$                 4,237		$                 5,581
Add: MRE, ATB (4)		135		1,138		977		7,125		523
Operating net income (Non-GAAP)		$               12,930		$                 7,944		$               29,619		$               11,362		$                 6,104
Average stockholders' equity		$             270,730		$             267,670		$             241,731		$             195,103		$             104,065
Operating return on average equity (annualized) (Non-GAAP)		19.10%		11.87%		49.01%		23.29%		23.46%
Operating efficiency ratio
Total noninterest expense		$               25,445		$               25,637		$               30,548		$               30,512		$               22,312
Less: MRE		171		1,441		1,237		9,019		662
Noninterest expense excluding MRE (Non-GAAP)		$               25,274		$               24,196		$               29,311		$               21,493		$               21,650
Net interest income		20,878		21,124		30,462		20,017		14,014
Noninterest income		22,203		13,518		36,425		15,809		17,436
Total of net interest income and noninterest income		43,081		34,642		66,887		35,826		31,450
Operating efficiency ratio (Non-GAAP)		58.7%		69.8%		43.8%		60.0%		68.8%
(1) Annualized.
(2) Shares outstanding as of and for the periods stated are reflective of the 3-for-2 stock split that was effective April 30, 2021.
(3) Excludes mortgage servicing rights.
(4) Assumes an income tax rate of 21% and full deductibility.

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SOURCE Blue Ridge Bankshares, Inc.

FAQ

What were Blue Ridge Bankshares' Q4 2021 earnings?

Blue Ridge Bankshares reported a net income of $12.8 million for Q4 2021.

How did Blue Ridge Bankshares perform in 2021?

For the full year 2021, Blue Ridge Bankshares achieved a net income of $52.5 million.

What is the impact of the Bay Banks Merger on Blue Ridge Bankshares?

The Bay Banks Merger contributed significantly to Blue Ridge's total assets, increasing them to $2.67 billion.

What challenges did Blue Ridge Bankshares face in 2021?

The company's mortgage division experienced profitability challenges due to pricing pressures.

What were the total assets and deposits for Blue Ridge Bankshares by the end of 2021?

As of December 31, 2021, Blue Ridge Bankshares reported total assets of $2.67 billion and total deposits of $2.30 billion.