EX-99.1 2 brbs-ex99_1.htm EX-99.1 EX-99.1

 

第99.1展示文本

 

Blue Ridge Bankshares公司宣佈2024年第三季度業績

 

績效反映出在存入資金增長、非利息支出減少和不良資產減少等一系列指標方面的改善

 

銀行將於2024年底完成退出金融科技銀行服務存款業務

 

監管整改工作進展順利

 

美國弗吉尼亞州里士滿，2024年10月29日 /PR Newswire/ -- blue ridge bankshares， Inc.（以下簡稱「公司」）（紐交所美國：BRBS），blue ridge bankshares的控股公司，國家藍山銀行（「blue ridge bank」或「銀行」）和BRb金融集團股份有限公司（「BRb金融集團」），今日宣佈截至2024年9月30日的季度和截至當日的年度財務業績。

 

截至2024年9月30日的季度，公司報告的淨利潤爲90萬美元，每股攤薄普通股收益爲0.01美元，相比之下，截至2024年6月30日的季度淨損失爲1140萬美元，每股攤薄普通股虧損爲0.47美元，2023年第三季度淨損失爲4140萬美元。2024年第三季度的淨利潤包括一筆660萬美元的稅後信貸損失回收，用於一筆專業金融貸款的銷售，該貸款在該季度收到所有合同款項後完成交易。2024年第二季度虧損包括一筆670萬美元的非現金稅後負公允價值調整，用於一家金融科技公司的股權投資。2023年第三季度淨虧損包括一筆2680萬美元的非現金稅後商譽減值損失，佔全部商譽餘額，以及一筆470萬美元的稅後和解儲備，用於之前披露並現已解決的員工持股計劃（「ESOP」）訴訟，該訴訟在2019年收購維吉尼亞社區銀行股份有限公司（「VCB」）時假定。

 

截至2024年9月30日的年初至今期間，公司報告淨損失爲1340萬美元，每股稀釋普通股爲0.34美元，而2023年同期淨虧損4600萬美元，每股稀釋普通股爲2.43美元。

 

來自blue ridge bankshares公司總裁兼首席執行官G. William「Billy」 Beale的一條消息:

 

「我們2024年第三季度標誌着我們開始認真地邁出了一年，朝着將Blue Ridge銀行恢復爲一個以社區爲重點的銀行機構的核心優勢的旅程。」

 

「今天，我們專注於三個重要領域的倡議：根據我們主要監管機構的指導進行的糾正工作；我們在整個組織中提高運營效率的倡議；第三，爲布魯嶺銀行的未來增長進行定位。」

 

 

 

在第三季度，我們在所有三個領域取得了進展，併產生了額外的動力。我們越來越看到這些舉措在反映更健康的藍嶺銀行的幾項關鍵指標上的好處：

 

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在我們的監管整改工作方面，我們在退出金融科技銀行服務（BaaS）存款業務方面取得了更多進展。我很高興地宣佈，我們在這項舉措上仍然領先於計劃，並預計到年底將完全退出這項業務。因此，金融科技BaaS來源的存款僅佔季末總存款的3%。這比去年同期總存款的18%有所減少。

 

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「第二個重點領域是我們專注於運營效率。在接下來的幾個季度裏，我們將加快努力，推動整個組織實現新的效率水平。我們已經開始朝着這個目標邁出了一些重要的步伐。對於第三季度，我們的非利息支出較上一季度下降了近10%，也比去年同期第三季度（排除商譽減值費用）約降低了30%。」

 

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「倡議的第三個關鍵領域是追求盈利增長。Blue Ridge Bank 位於強勁的商業和消費市場以及弗吉尼亞州良好的人口統計趨勢附近，爲我們提供了可以充分利用的機會。這加上我們必須的資本水平來支持增長和我們新的商業銀行領袖將幫助我們擁有繼續推動存款和貸款增長的能力。令人鼓舞的是，在2024年第三季度，我們的存款增長了7400萬美元，截至目前已增長了14400萬美元，不包括與金融科技相關和批發。這是我們連續第三個季度能夠增長這一存款基數並減少對金融科技相關存款和批發資金的依賴。」

 

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在這些舉措的同時，我們專注於改善和加強我們的貸款投資組合的質量，過去一年我們對此進行了深入審查。在第三季度結束時，我們的不良貸款與總資產的比率爲1.1%。與上一季末的1.4%和去年第三季度的2.5%相比。在我們信用風險領導及修訂的貸款政策的指導下，我相信我們今天有一個更加嚴格和強大的信用檔案。

 

「隨着我們退出金融科技BaaS業務，我們已經開始重新定位資產負債表，以反映更加傳統的社區銀行。這個跨年度的過程將着重於增加我們本地存款，減少境外貸款數量，並降低對經紀存款的依賴。在2024年，我們在所有這些方面都取得了良好的進展。」

 

「隨着我們走向年底，我相信我們將以比起初更加強勁的姿態結束2024年。我希望我們將繼續看到那些最能體現我們正在追求的策略的關鍵指標取得進一步進展。」

 

 

最後，我感謝這個領導團隊的支持，我們的員工，我們新組建的董事會，重要的是，我們的股東。

 

2024年第三季度亮點

（2024年第三季度的比較參照對象爲2024年第二季度，除非另有說明。）

 

淨利潤：

 

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本季度淨利潤爲$900,000，每股攤薄普通股收益爲$0.01，而上個季度淨損失爲$11,400,000，每股攤薄普通股虧損爲$0.47。本季度收入稅前爲$1,500,000，其中包括$6,200,000的信貸損失收回，主要是由於前述專業金融貸款出售完成後的$8,400,000的收回。上個季度稅前虧損爲$12,100,000，包括$3,100,000的信貸損失準備和公司持有的一家金融科技公司的權益投資的非現金$8,500,000的負公允價值調整。除去第二季度公允價值調整和信貸損失準備（或收回）之外，公司稅前收入減少了$4,400,000，其中$5,900,000的下降歸因於公允價值調整以及抵押貸款服務權（「MSRs」）出售的損失。本季度非利息支出減少了$2,800,000。

 

資產質量:

 

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不良貸款，包括不應計貸款和逾期90天或更長且應計利息的貸款，在本季末改善至$3210萬，相較上一季末的$4120萬，佔總資產的1.09%。不良貸款下降主要反映出第三季度前述專業金融貸款的出售。

 

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這季度信貸損失的回收金額為620萬美元，與上一季度的信貸損失預備金310萬美元相比。信貸損失的回收主要歸因於先前提及的專業金融貸款的840萬美元回收，以及由於貸款組合餘額減少而導致較低的儲備需求，部分抵銷了對某些已購貸款的更高特定儲備金。上一季度的信貸損失預備金主要與某些已購貸款的儲備需求和增加的政府擔保貸款無保證部分的儲備金有關，這抵消了由於貸款組合餘額減少而導致的較低儲備需求。

 

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截至本季度末，信用損失準備金（"ACL"）占總投資貸款的比例為1.17%，與前一季度末的1.24%相比有所下降。此次下降主要是由於本季度對某些GGL和購買的貸款進行的核銷。淨貸款回收在本季度達到340萬美元，其中包括來自之前提到的專業金融貸款的840萬美元回收。此次回收是主要的

 

 

將較低的淨貸款收回（備抵呆帳）比例（年初至今年化）驅動至0.61%，而前一季為1.81%。

 

資本：

 

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有形普通股股東權益與有形總資產的比率為10.6%。1相比之下，這一比率為10.3%。1 在上一季度結束時，每股有形帳面價值（TBV）為$4.25。1 相比之下，此為$4.10。1 這些比率的改善主要是由於未實現損益減少，這一減少促使公司可供出售證券投資組合在此季度的稅後未實現收益為1000萬美元，此乃由於較低的市場利率。在第三季和第二季結束時的TBV中並不包括將C系列優先股轉換為普通股，該轉換由持有人選擇。假定這些股份的轉換將對2024年9月30日和2024年6月30日的TBV分別產生負面影響，分別為$0.31和$0.29。

 

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截至2024年9月30日的季度，該銀行的一級槓桿比率、一級風險資本比率、普通股一級資本比率和總風險資本比率分別為11.56％、15.68％、15.68％和16.64％，分別與上個季度結束時的11.02％、14.19％、14.19％和15.18％進行比較。截至2024年9月30日，公司資本比率為一級槓桿比率11.46％、一級風險資本比率15.58％、普通股一級資本比率15.58％和總風險資本比率19.26％。

 

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截至2024年9月30日和2024年6月30日，该銀行的一级槓桿和總風險資本比率均超過銀行與美國國家貨幣監督署（OCC）簽署的同意訂單中設定的最低資本比率，該訂單要求該銀行要保持最低10.00％的一级槓桿比率和13.00％的總風險資本比率。

 

凈利息收入 / 凈利息收益率：

 

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Net interest income was $19.1 million, a decline of $1.0 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 2.74% from 2.79%; six basis points of the decline was due to loans placed on nonaccrual.

 

Noninterest Income / Noninterest Expense:

 

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Noninterest income for the quarter was $2.7 million compared to $0.3 million for the prior quarter, which included the $8.5 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 $4.9 million negative variance in fair value adjustment on MSRs, primarily due to changes in future interest rate expectations, and a $1.0 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.

 

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Noninterest expense for the quarter was $26.5 million compared to $29.3 million in the prior quarter, a decrease of $2.8 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.

 

Income Tax:

 

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The effective income tax rate for the quarter was 38.8% compared to 5.1% 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 $2.0 million 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.

 

Balance Sheet:

 

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Total assets increased to $2.94 billion from $2.93 billion at the prior quarter end, an increase of $11.6 million. This increase was primarily due to higher cash and due from banks balances of $157.1 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 $111.2 million in the quarter. Other asset balance declines included bank owned life insurance and MSRs, which declined $27.5 million and $10.4 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, $7.4 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.

 

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Loans held for investment were $2.18 billion at quarter end, a decrease of $78.9 million from the prior quarter end, and $250.5 million from year-end 2023. The Company purposefully and selectively reduced balances of loans, primarily where borrowers did not represent in-market relationships.

 

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Total deposit balances increased to $2.35 billion from $2.33 billion at the prior quarter end, an increase of $20.7 million. Deposits, excluding fintech-related and wholesale deposits, increased $73.7 million in the quarter and $143.5 million in the year-to-date period. Brokered deposit balances declined $33.9 million in the quarter and $84.7 million in the year-to-date period. Estimated uninsured deposits as a percentage of total deposits were 16.8% at quarter end compared to 17.9% at the prior quarter end and 22.3% at year-end 2023.

 

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Deposits related to fintech relationships were $187.5 million at September 30, 2024, a decline of $19.2 million in the quarter and $278.4 million in the year-to-date period. Of the decline, fintech BaaS deposits decreased $108.8 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 $307.3 million. Excluding brokered deposits, deposits related to fintech relationships represented 9.8%, 11.1%, and 22.7% of total deposits at September 30, 2024, June 30, 2024, and December 31, 2023, respectively.

 

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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 $805.0 million, or 202.7% of uninsured deposits as of the same date.

 

Income Statement:

 

Net interest income was $19.1 million for the third quarter of 2024, compared to $20.1 million for the second quarter of 2024, and $22.2 million for the third quarter of 2023. The decline from the second quarter of 2024 was primarily attributable to lower interest and fee income on loans due to lower average balances and the reversal of interest income due to loans placed on nonaccrual. This decline was partially offset by lower average balances and rates paid on interest-bearing demand accounts and lower average balances of wholesale funding. The majority of fintech BaaS deposits are in interest-bearing demand accounts.

 

Average balances of interest-earning assets decreased $90.1 million to $2.80 billion in the third quarter of 2024, relative to the prior quarter, and decreased $242.7 million from the year-ago quarter period. Relative to the prior quarter and the year-ago period, the decrease reflected primarily lower average balances of loans held for investment. The yield on average loans held for investment was 5.80% for the third and second quarters of 2024, compared to 5.88% for the

 

 

third quarter of 2023. Nonaccrual interest had a negative impact of seven basis points on loan yield in the quarter.

 

Average balances of interest-bearing liabilities decreased $106.7 million to $2.12 billion in the third quarter of 2024, relative to the prior quarter, and decreased $233.0 million from the year-ago quarter period.

 

Cost of funds was 3.09% for the third quarter of 2024, compared to 3.02% for the second quarter of 2024, and 2.73% for the third quarter of 2023, while cost of deposits was 2.91%, 2.84%, and 2.46%, for the same respective periods. Higher deposit and overall funding costs in the 2024 periods reflect the impact of higher market interest rates and a shift in the mix of funding. Cost of deposits, excluding wholesale deposits, was 1.71% for the quarter compared to 2.28% for the prior quarter, and 2.50% for the year-ago period. The sequential quarter decline was primarily due to lower average balances of higher rate fintech-related deposits.

 

Net interest margin was 2.74% for the third quarter of 2024 compared to 2.79% in the prior quarter and 2.92% in the year-ago period. The decrease in net interest margin relative to the prior periods primarily reflects the impact of a slight increase in funding costs.

 

The Company recorded a recovery of credit losses of $6.2 million for the third quarter of 2024, compared to a provision for credit losses of $3.1 million for the second quarter of 2024, and a provision for credit losses of $11.1 million for the third quarter of 2023. The recovery of credit losses for the third quarter of 2024 was primarily attributable to an $8.4 million recovery from the sale of the previously noted 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 for the second quarter of 2024 was primarily related to specific reserves on certain purchased loans and increased reserves for the non-guaranteed portion of the GGL portfolio, while the provision for credit losses for the third quarter of 2023 was primarily attributable to specific reserves for the previously reported group of specialty finance loans.

 

Noninterest income was $2.7 million for the third quarter of 2024, compared to $0.3 million for the second quarter of 2024, and $7.4 million for the third quarter of 2023. The increase in the third quarter relative to the second quarter was primarily due to the previously noted second quarter $8.5 million, non-cash, negative fair value adjustment of an equity investment. Excluding the fair value adjustment, lower noninterest income in the third quarter of 2024 was primarily due to negative fair value adjustments on MSRs, primarily due to change in future interest rate expectations, and a loss on the sale of a portion of the Company’s portfolio of MSRs. The decline in noninterest income for the third quarter of 2024 relative to the year-ago period was primarily attributable to fair value adjustments on MSRs.

 

Noninterest expense was $26.5 million for the third quarter of 2024, compared to $29.3 million for the second quarter of 2024, and $64.6 million for the third quarter of 2023. Noninterest expense decreased $2.8 million from the prior quarter and decreased $38.1 million from the

 

 

year-ago period. The decrease relative to the second quarter of 2024 was primarily driven by lower salaries and employee benefits, lower regulatory remediation expenses, and lower FDIC insurance assessments. The decrease relative to the year-ago was primarily due to the 2023 non-cash goodwill impairment charge of $26.8 million, which was the entirety of the goodwill balance, and the $6.0 million settlement reserve for the previously disclosed, now settled, VCB ESOP litigation. Excluding these amounts and regulatory remediation expenses, noninterest expense declined $1.9 million relative to the year-ago period.

 

Balance Sheet:

 

Loans held for investment were $2.18 billion at September 30, 2024, compared to $2.26 billion at June 30, 2024, and $2.45 billion at September 30, 2023. These declines are attributable to the Company’s plan to purposefully and selectively reduce assets to partially meet the liquidity needs of the fintech BaaS depository operations wind down.

 

Total deposits were $2.35 billion at September 30, 2024, an increase of $20.7 million for the quarter, and a decrease of $219.6 million for the year-to-date period. Fintech-related deposits declined $19.2 million in the third quarter of 2024, while fintech BaaS deposits decreased $108.8 million in the quarter. Year-to-date fintech BaaS deposits decreased $307.3 million. Excluding fintech-related and brokered deposits, total deposits increased $73.7 million from the prior quarter end and $143.5 million from year-end 2023.

 

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 $430.5 million, a decline of $33.9 million from June 30, 2024 and $84.7 million from December 31, 2023. The Company has used brokered deposits in anticipation of the liquidity requirements of the fintech BaaS winddown.

 

Noninterest-bearing deposits represented 19.6%, 20.2%, and 20.6% of total deposits at September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Fintech-related balances represented 8.0%, 8.9%, and 28.8% of total deposits as of the same respective dates.

 

The held for investment loan to deposit ratio was 92.9% at September 30, 2024, compared to 97.1% at the prior quarter end, and 88.1% at the year-ago period-end.

 

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 U.S. generally accepted accounting principles (“GAAP”) and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible assets, tangible common equity, tangible book value per common share, and tangible common equity to tangible total assets to supplement the evaluation of the Company’s financial condition and performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the financial condition and capital position of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for financial measures 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 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 in the 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)
September 30, 2024

 

 

December 31, 2023 (1)

 

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 authorized at September 30, 2024 and December 31, 2023, respectively; and 73,474,147 and 19,198,379 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively

 

 

300,763

 

 

 

197,636

 

Preferred stock, $50 per share par value; 250,000 shares authorized at September 30, 2024 and December 31, 2023; 2,732 and 0 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively

 

 

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 and FRB 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

%

Fintech BaaS 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.