Financial Performance - For Q4 2024, the company reported a net loss of $2.0 million, or $0.03 per diluted common share, compared to a net income of $0.9 million, or $0.01 per diluted common share in Q3 2024[4]. - For the full year 2024, the company reported a net loss of $15.4 million, or $0.31 per diluted common share, an improvement from a net loss of $51.8 million, or $2.73 per diluted common share in 2023[5]. - The company reported a net loss of $2,003 thousand for the three months ended December 31, 2024, compared to a net income of $946 thousand in the previous quarter and a net loss of $5,759 thousand in the same quarter last year[47]. - Basic and diluted loss per common share for the twelve months ended December 31, 2024, was $0.31, compared to a loss of $2.73 per share in 2023[48]. - Return on average assets was -0.28% in Q4 2024, compared to 0.13% in Q3 2024[49]. Asset and Deposit Management - Total assets decreased to $2.74 billion from $2.94 billion at the prior quarter end, primarily due to a reduction in cash balances and loans held for investment[21]. - Total deposit balances decreased to $2.18 billion, down $167.1 million from the prior quarter and $386.6 million from the prior year[25]. - Average balances of interest-bearing liabilities decreased by $99.6 million to $2.02 billion in Q4 2024, down $341.0 million from the year-ago quarter[26]. - Total assets decreased to $2,737,260 thousand as of December 31, 2024, down from $3,117,554 thousand in 2023, representing a decline of approximately 12.2%[46]. - Total deposits fell to $2,179,442,000, down 7.1% from $2,346,492,000 in Q3 2024[49]. Income and Expense Analysis - Net interest income remained stable at $19.1 million for both Q4 and Q3 2024, while net interest margin increased to 2.80% from 2.74%[15]. - Noninterest income was $2.8 million in Q4 2024, slightly up from $2.7 million in Q3 2024 but down from $4.1 million in Q4 2023[30]. - Noninterest expense decreased to $25.6 million in Q4 2024, down from $26.5 million in Q3 2024 and $30.6 million in Q4 2023[32]. - Total noninterest expense for the twelve months ended December 31, 2024, was $113,841 thousand, down from $157,937 thousand in 2023, a reduction of approximately 28.0%[48]. - Interest on deposits increased to $69,070 thousand for the twelve months ended December 31, 2024, compared to $59,969 thousand in 2023, reflecting an increase of approximately 15.5%[48]. Credit Quality and Loan Performance - Nonperforming loans improved to $25.5 million, or 0.93% of total assets, down from 1.09% in the prior quarter and 2.02% at year-end 2023[12]. - The allowance for credit losses as a percentage of total loans held for investment was 1.09% at quarter end, down from 1.17% in the prior quarter[12]. - The allowance for credit losses decreased to $23,023 thousand as of December 31, 2024, compared to $35,893 thousand in 2023, indicating an improvement in credit quality[46]. - The company experienced a recovery of credit losses of $5,100 thousand for the twelve months ended December 31, 2024, contrasting with a provision of $22,323 thousand in the previous year[48]. - Nonperforming loans to total loans ratio was 1.19%, down from 1.46% in Q3 2024, indicating improved asset quality[49]. Funding and Capital Ratios - The company reduced deposits from fintech banking-as-a-service partnerships by $445 million and decreased reliance on wholesale funding by nearly $113 million[9]. - The company's tier 1 leverage ratio improved to 12.43% at December 31, 2024, compared to 11.46% at the prior quarter end[16]. - Efficiency ratio improved slightly to 116.9% from 121.4% in the previous quarter[49]. - Average stockholders' equity to average assets ratio increased to 11.5% from 11.0% in the previous quarter, reflecting a stronger capital position[49].

Financial Performance - The company reported a net income of $946 thousand for the three months ended September 30, 2024, compared to a net loss of $41,371 thousand for the same period in 2023, indicating a significant turnaround[5]. - For the nine months ended September 30, 2024, Blue Ridge Bankshares reported a net loss of $13,382 thousand[8]. - The company reported comprehensive net income of $10,946 thousand for the three months ended September 30, 2024, compared to a comprehensive net loss of $48,889 thousand for the same period in 2023[7]. - Basic and diluted earnings per share for the three months ended September 30, 2024, was $0.01, compared to a loss of $2.18 per share for the same period in 2023[5]. - For the nine months ended September 30, 2024, the net loss was $13,382 thousand, compared to a net loss of $46,014 thousand for the same period in 2023[7]. Asset and Deposit Changes - Total assets decreased to $2,944,691 thousand as of September 30, 2024, down from $3,117,554 thousand on December 31, 2023, representing a decline of approximately 5.5%[4]. - Total deposits decreased to $2,346,492 thousand as of September 30, 2024, down from $2,566,032 thousand on December 31, 2023, reflecting a decline of approximately 8.6%[4]. - The company experienced a net decrease in demand, savings, and other interest-bearing deposits of $361,678 thousand for the current period[7]. - The total stockholders' equity at the end of the period was $336,347 thousand, reflecting an increase from the previous period[8]. - The total stockholders' equity increased by $150.4 million to $336.3 million as of September 30, 2024, mainly due to the closing of Private Placements in Q2 2024[158]. Income and Expense Analysis - Net interest income for the three months ended September 30, 2024, was $19,101 thousand, a decrease of 13.4% compared to $22,192 thousand for the same period in 2023[5]. - Noninterest income for the three months ended September 30, 2024, was $2,739 thousand, a decrease from $7,415 thousand in the same period in 2023, representing a decline of approximately 63.1%[5]. - The company experienced a total noninterest expense of $26,495 thousand for the three months ended September 30, 2024, significantly lower than $64,621 thousand for the same period in 2023, indicating a reduction of approximately 58.9%[5]. - Total noninterest expense for the nine months ended September 30, 2024, was $88,314, an increase from $79,575 in the previous period[129]. - The effective income tax rate for the three months ended September 30, 2024, was 38.8%, compared to 10.2% for the same period in 2023[183]. Credit Losses and Provisions - The provision for credit losses was a recovery of $6,200 thousand for the three months ended September 30, 2024, compared to a provision of $11,050 thousand for the same period in 2023[5]. - The allowance for credit losses decreased to $25,453 thousand as of September 30, 2024, down from $35,893 thousand on December 31, 2023, indicating a reduction of approximately 29.1%[4]. - The company recorded a recovery of credit losses amounting to $8.4 million from the sale of a nonperforming specialty finance loan[192]. - The total charge-offs for the nine months ended September 30, 2024, amounted to $7,913,000, with commercial and industrial loans contributing $6,001,000 to this figure[67]. - The company recorded a recovery of credit losses of $6.2 million in Q3 2024, compared to a provision for credit losses of $11.1 million in Q3 2023[173]. Capital and Financing Activities - The company issued 53,922,000 shares from private placements, resulting in additional capital of $102,108 thousand[8]. - The company closed private placements in April and June 2024, raising gross proceeds of $150.0 million and $11.6 million, respectively[24]. - The net proceeds from the private placements amounted to $152.1 million, allocated based on the relative fair value method among common stock, Series C Preferred Stock, and stock warrants[34]. - The company expects the exchange of Series C Preferred Stock for common stock to be completed in the fourth quarter of 2024[24]. - The company has outstanding warrants to purchase 26,195,999 common shares, with exercise prices of $2.50 and $2.39 per share[149]. Loan Portfolio and Credit Quality - The Company reported a total of $2,180,413 thousand in gross loans as of September 30, 2024, down from $2,430,947 thousand as of December 31, 2023, indicating a decrease of approximately 10.3%[48]. - The total loans in risk grades 1-4 amounted to $196,370,000, while risk grades 5-6 totaled $47,325,000 as of December 31, 2023[65]. - The total amount of loans held for investment with risk grades 1 to 3 indicates a strong credit quality, with no loans classified as loss (risk grade 9) as of September 30, 2024[63]. - The company segments loans into risk categories based on borrowers' repayment ability, with independent third-party reviews validating management's risk grade assessments[52]. - Nonperforming loans decreased by $31.0 million from December 31, 2023, totaling $32.1 million as of September 30, 2024[196]. Regulatory Compliance and Legal Matters - The company consented to a consent order with the OCC, requiring a leverage ratio of 10.0% and a total capital ratio of 13.0%[22]. - The total capital ratio required by the Consent Order is 13.00%, and the Bank met this minimum capital ratio as of September 30, 2024[108]. - The Company submitted a three-year strategic plan focusing on remediation and compliance with the Consent Order, redefining its fintech business, and enhancing risk management[147]. - The company has ongoing legal matters, including a putative class action alleging violations of federal securities laws, with mediation scheduled for December 2024[136]. - The Company does not believe the restatements significantly impacted its financial condition as of September 30, 2024[154].

Net Income and Loss - Net income for Q3 2024 was $0.9 million, compared to a net loss of $11.4 million in Q2 2024 and a net loss of $41.4 million in Q3 2023[2] - Net loss for Q3 2024 was $13,382 thousand, compared to a net loss of $46,014 thousand in Q3 2023[48] - Net income improved to $0.9 million in Q3 2024 from a loss of $41.4 million in Q3 2023[49] Deposits - Deposits excluding fintech-related and wholesale deposits grew by $74 million in Q3 2024 and $144 million year-to-date[7] - Fintech BaaS deposits decreased to 3% of total deposits in Q3 2024, down from 18% year-over-year[5] - Total deposit balances increased to $2.35 billion in Q3 2024, up $20.7 million from Q2 2024[23] - Fintech-related deposits declined to $187.5 million in Q3 2024, down $19.2 million from Q2 2024 and $278.4 million year-to-date[24] - Total deposits increased by $20.7 million to $2.35 billion at September 30, 2024, but fintech BaaS deposits decreased by $108.8 million in the quarter[35] - Total deposits decreased to $2,346,492 thousand as of September 30, 2024, from $2,566,032 thousand at the end of 2023[46] - Total deposits decreased to $2.35 billion in Q3 2024 from $2.78 billion in Q3 2023[49] - Fintech BaaS deposits dropped significantly to $63.7 million in Q3 2024 from $493.0 million in Q3 2023[49] Loans and Credit Quality - Nonperforming loans to total assets ratio improved to 1.1% in Q3 2024, down from 1.4% in Q2 2024 and 2.5% in Q3 2023[8] - Loans held for investment decreased to $2.18 billion in Q3 2024, down $78.9 million from Q2 2024[22] - Loans held for investment decreased to $2.18 billion at September 30, 2024, from $2.26 billion at June 30, 2024, and $2.45 billion at September 30, 2023[34] - Loans held for investment, net of deferred fees and costs, decreased to $2,180,413 thousand as of September 30, 2024, from $2,430,947 thousand at the end of 2023[46] - Loans held for investment decreased to $2.18 billion in Q3 2024 from $2.45 billion in Q3 2023[49] - Nonperforming loans to total assets ratio improved to 1.09% in Q3 2024 from 2.51% in Q3 2023[49] - The company recorded a recovery of credit losses of $6.2 million in Q3 2024, compared to provisions of $3.1 million in Q2 2024 and $11.1 million in Q3 2023[31] - The company reported a recovery of credit losses of $4,100 thousand for the nine months ending September 30, 2024, compared to a provision of $19,553 thousand in the same period of 2023[48] Net Interest Income and Margin - Net interest income declined to $19.1 million in Q3 2024, with net interest margin decreasing to 2.74% from 2.79% in Q2 2024[17] - Net interest income for Q3 2024 was $19.1 million, down from $20.1 million in Q2 2024 and $22.2 million in Q3 2023[26] - Net interest margin declined to 2.74% in Q3 2024 from 2.79% in Q2 2024 and 2.92% in Q3 2023[30] - Net interest income for Q3 2024 was $19,101 thousand, down from $22,192 thousand in Q3 2023[47] - Net interest income for Q3 2024 was $19.1 million, down from $22.2 million in Q3 2023[49] Noninterest Income and Expense - Noninterest expense decreased by nearly 10% sequentially in Q3 2024 and was approximately 30% lower than Q3 2023 excluding goodwill impairment[6] - Noninterest income was $2.7 million in Q3 2024, up from $0.3 million in Q2 2024 but down from $7.4 million in Q3 2023[32] - Noninterest expense decreased to $26.5 million in Q3 2024 from $29.3 million in Q2 2024 and $64.6 million in Q3 2023[33] - Total noninterest expense for Q3 2024 was $88,314 thousand, a decrease from $127,520 thousand in Q3 2023[48] - Noninterest income for Q3 2024 was $10,872 thousand, a significant decrease from $24,434 thousand in Q3 2023[48] Assets and Liquidity - Total assets increased to $2.94 billion in Q3 2024, up $11.6 million from Q2 2024[21] - Liquidity sources as of September 30, 2024, totaled approximately $805.0 million, or 202.7% of uninsured deposits[25] - Total assets decreased to $2,944,691 thousand as of September 30, 2024, compared to $3,117,554 thousand at the end of 2023[46] - Total assets decreased to $2.94 billion in Q3 2024 from $3.26 billion in Q3 2023[49] Interest-Earning Assets and Cost of Funds - Average balances of interest-earning assets decreased by $90.1 million to $2.80 billion in Q3 2024 compared to the prior quarter[27] - Cost of funds increased to 3.09% in Q3 2024 from 3.02% in Q2 2024 and 2.73% in Q3 2023[29] - Interest income from loans decreased to $34,747 thousand in Q3 2024, down from $38,551 thousand in Q3 2023[47] - Total interest income for the nine months ending September 30, 2024, was $122,387 thousand, down from $125,835 thousand in the same period of 2023[48] Efficiency and Equity Ratios - Efficiency ratio improved to 121.3% in Q3 2024 from 127.7% in Q3 2023[49] - Tangible common equity to tangible total assets ratio increased to 10.6% in Q3 2024 from 5.5% in Q3 2023[50] - Book value per common share increased to $4.30 in Q3 2024 from $9.53 in Q3 2023[49]

Core Insights - Blue Ridge Bankshares, Inc. reported a net income of $0.9 million for Q3 2024, a significant recovery from a net loss of $11.4 million in Q2 2024 and $41.4 million in Q3 2023 [1][3][9] - The company is on track to exit its fintech banking-as-a-service operations by the end of 2024, with fintech-related deposits decreasing from 18% to 3% of total deposits year-over-year [2][3] - Regulatory remediation efforts are progressing, with a focus on operational efficiency and positioning for future growth [2][3] Financial Performance - Net interest income for Q3 2024 was $19.1 million, down from $20.1 million in Q2 2024 and $22.2 million in Q3 2023 [5][9] - Noninterest income increased to $2.7 million in Q3 2024 from $0.3 million in Q2 2024, primarily due to the absence of a negative fair value adjustment recorded in the previous quarter [6][9] - Noninterest expenses decreased to $26.5 million in Q3 2024 from $29.3 million in Q2 2024 and $64.6 million in Q3 2023, reflecting cost-cutting measures [6][9] Asset Quality - Nonperforming loans improved to 1.1% of total assets at the end of Q3 2024, down from 1.4% in Q2 2024 and 2.5% in Q3 2023 [2][3][10] - The allowance for credit losses as a percentage of total loans held for investment was 1.17% at quarter-end, compared to 1.24% in the prior quarter [3][10] Capital Position - The ratio of tangible common stockholders' equity to tangible total assets increased to 10.6% at the end of Q3 2024 from 10.3% in the prior quarter [4][10] - The bank's capital ratios exceeded the minimum requirements set forth in the Consent Order with the Office of the Comptroller of the Currency [4][10] Balance Sheet Highlights - Total assets increased to $2.94 billion from $2.93 billion in the prior quarter, primarily due to higher cash balances [8][11] - Total deposits rose to $2.35 billion, with a $73.7 million increase in deposits excluding fintech-related and wholesale deposits [8][11] - Loans held for investment decreased to $2.18 billion, down from $2.26 billion in the prior quarter [11][19]

Financial Performance - Net interest income for the three months ended June 30, 2024, was $20,085 thousand, a decrease of 16.5% compared to $23,890 thousand for the same period in 2023[5]. - The net loss attributable to common shareholders for the three months ended June 30, 2024, was $(11,585) thousand, compared to $(8,613) thousand for the same period in 2023, reflecting an increase in losses[5]. - The company reported a comprehensive net loss of $(8,304) thousand for the three months ended June 30, 2024, compared to $(13,636) thousand for the same period in 2023, showing an improvement in overall loss[7]. - For the six months ended June 30, 2024, the company reported a net loss of $14,328,000[9]. - The company reported a net loss of $11.4 million, or ($0.47) per diluted common share, for the three months ended June 30, 2024, compared to a net loss of $8.6 million, or ($0.45) per diluted common share, for the same period in 2023[152]. - The net loss for the three and six months ended June 30, 2024 included a $6.7 million after-tax negative fair value adjustment for an equity investment in a fintech company[153]. Asset and Deposit Changes - Total assets decreased to $2,933,072 thousand as of June 30, 2024, down from $3,117,554 thousand on December 31, 2023, representing a decline of approximately 5.9%[4]. - Total deposits decreased to $2,325,839 thousand as of June 30, 2024, down from $2,566,032 thousand on December 31, 2023, a decline of approximately 9.4%[4]. - The company experienced a net decrease in demand, savings, and other interest-bearing deposits of $327,090,000 for the six months ended June 30, 2024, compared to a decrease of $109,471,000 in the same period of 2023[7]. - Total deposits as of June 30, 2024, were $2.33 billion, a net decrease of $240.2 million, with interest-bearing fintech deposits decreasing by $245.3 million[151]. - Fintech-related deposits comprised approximately $206.6 million, or 8.9%, of total deposits as of June 30, 2024, down from approximately $465.9 million, or 18.2%, as of December 31, 2023[188]. Credit Losses and Provisions - Provision for credit losses on loans was $3,600 thousand for the three months ended June 30, 2024, compared to $10,613 thousand for the same period in 2023, indicating a significant reduction in credit loss provisions[5]. - The allowance for credit losses decreased to $(28,036) thousand as of June 30, 2024, down from $(35,893) thousand on December 31, 2023, reflecting a more favorable credit environment[4]. - The provision for credit losses for the six months ended June 30, 2024, was $2,100 thousand, compared to $10,013 thousand for the same period in 2023, indicating a significant decrease of 79.0%[127]. - The company reported no loans classified as loss (risk grade 9) as of June 30, 2024, indicating a stable credit quality[66]. - The company’s ACL to total loans held for investment was 1.24% as of June 30, 2024, down from 1.48% at December 31, 2023[181]. Capital and Equity - The total balance of stockholders' equity at the end of the period was $325,614,000[12]. - The Company raised $152.5 million in net proceeds from Private Placements, which will be allocated to support strategic initiatives and enhance capital levels[33]. - As of June 30, 2024, the total risk-based capital for Blue Ridge Bank, N.A. was $367,696 thousand, representing a ratio of 15.18% to risk-weighted assets[113]. - The Tier 1 capital was $343,744 thousand, with a ratio of 14.19% to risk-weighted assets as of June 30, 2024[113]. - The company consented to a Consent Order with the OCC, requiring a leverage ratio of 10.0% and a total capital ratio of 13.0%[143]. Noninterest Income and Expenses - Noninterest income for the three months ended June 30, 2024, was $308 thousand, a significant decrease from $9,736 thousand for the same period in 2023[5]. - Total noninterest expense decreased to $29,344 thousand for the three months ended June 30, 2024, down from $34,052 thousand for the same period in 2023, indicating cost management efforts[5]. - Total noninterest income for Q2 2024 was $308 thousand, down 96.8% from $9.736 million in Q2 2023, primarily due to an $8.5 million negative fair value adjustment of an equity investment[164]. - Total noninterest expense for Q2 2024 was $29.344 million, a decrease of 13.8% from $34.052 million in Q2 2023[167]. Loan Portfolio and Performance - The Company reported a total of $2,259,279 thousand in gross loans as of June 30, 2024, a decrease from $2,430,947 thousand as of December 31, 2023[48]. - The total loans held for investment reached $2,258,443,000, with risk grades 1-4 accounting for $31,050,000[67]. - The company recorded total charge-offs of $12,610,000 for the three months ended June 30, 2024, compared to $9,020,000 for the same period in 2023[176]. - The commercial and industrial loan category represented 17.8% of total loans as of June 30, 2024, with an amount of $401,589,000[170]. - Total nonperforming loans decreased by $21.9 million from December 31, 2023, to $41.2 million as of June 30, 2024[182]. Regulatory and Compliance - The company is subject to various regulatory capital requirements, and failure to meet these can have a direct material effect on financial statements[108]. - The Company has established a formal liquidity contingency plan to manage liquidity under various stress scenarios[199]. - The Bank received FDIC approval to accept, renew, or rollover brokered deposits for a six-month period following the Consent Order[200]. Strategic Initiatives - The Company plans to reposition business lines and support organic growth as part of its near-term strategic initiatives[28]. - The Company intends to utilize proceeds from Private Placements and core deposit growth to offset funding outflows from the BaaS wind down[202].

Financial Performance - The company reported a net loss of $11.4 million, or $0.47 per diluted common share, for Q2 2024, compared to a net loss of $2.9 million, or $0.15 per diluted common share, in Q1 2024[2]. - The company reported a net loss of $11.435 million in Q2 2024, compared to a net loss of $2.893 million in Q1 2024 and $8.613 million in Q2 2023[50]. - The net loss attributable to common shareholders was $(11,585) thousand, compared to $(2,893) thousand in the prior quarter[51]. - Return on average assets was -1.48%, compared to -0.37% in the prior quarter[51]. - Noninterest income for Q2 2024 was $0.3 million, a significant decrease from $7.8 million in Q1 2024 and $9.7 million in Q2 2023, primarily due to an $8.5 million non-cash negative fair value adjustment[38]. - Noninterest income significantly decreased to $308 thousand from $7,825 thousand in the previous quarter[51]. Deposits and Loans - Total deposit balances decreased to $2.33 billion from $2.47 billion, a decrease of $139.9 million, reflecting a $96.3 million reduction in fintech-related balances[28]. - Total deposits decreased to $2.33 billion at June 30, 2024, a decline of $139.9 million from the prior quarter and $287.3 million from the year-ago period, largely due to fewer fintech relationships[42]. - Fintech-related deposits fell to $206.6 million at June 30, 2024, down from $303.0 million at the prior quarter end and $707.6 million at June 30, 2023[47]. - Loans held for investment were $2.26 billion at quarter end, a decrease of $134.8 million from the prior quarter[30]. - Loans held for investment were $2.26 billion at June 30, 2024, down from $2.39 billion at March 31, 2024, and $2.45 billion at June 30, 2023, reflecting a strategic reduction in assets[41]. - The held for investment loan to deposit ratio was 97.1% at June 30, 2024, unchanged from the prior quarter, indicating a stable asset-liability management strategy[45]. Interest Income and Margin - The net interest income after provision for credit losses was $16.985 million in Q2 2024, compared to $21.349 million in Q1 2024 and $13.877 million in Q2 2023[50]. - Net interest income was $20.1 million, a decline of $0.3 million from the prior quarter, primarily due to a decline in average balances of interest-earning assets[53]. - Net Interest Income increased by 15% year-over-year, reaching $1.2 billion[71]. - The net interest margin was 2.79% for Q2 2024, an increase from 2.75% in the prior quarter[36]. - Net Interest Margin improved to 3.5%, up from 3.2% in the previous quarter[71]. Expenses and Credit Losses - Noninterest expense decreased to $29.3 million in Q2 2024 from $32.5 million in Q1 2024 and $34.1 million in Q2 2023, driven by lower salaries and employee benefits[40]. - The provision for credit losses was $3.1 million, compared to a recovery of $1.0 million in the prior quarter, with net loan charge-offs of $10.6 million[66]. - The allowance for credit losses as a percentage of total loans held for investment was 1.24%, down from 1.46% in the prior quarter[67]. - The ratio of net charge-offs to average loans outstanding increased to 1.81% from 0.14% in the prior quarter[52]. Capital and Regulatory Position - The company completed a capital raise of $161.6 million in a private placement to support business transformation[2]. - Capital proceeds from private placements totaled $152.5 million, positioning the Bank to meet its regulatory capital requirements[63]. - The ratio of tangible common stockholders' equity to tangible total assets was 10.3%, up from 5.8% in the prior quarter, reflecting the issuance of 53,922,000 shares of common stock[68]. - The Bank's tier 1 leverage ratio and total risk-based capital ratio were 11.02% and 15.11%, respectively, compared to 7.44% and 10.51% in the prior quarter, indicating improved capital position[69]. Asset Management - Total assets decreased to $2,933,072 thousand from $3,076,187 thousand in the previous quarter, representing a decline of approximately 4.65%[52]. - The effective income tax rate for the quarter was 5.1%, down from 12.3% in the prior quarter, influenced by a $2.0 million tax benefit from surrendering bank-owned life insurance policies[56]. - Estimated uninsured deposits as a percentage of total deposits were 17.9% at quarter end, down from 22.4% in the prior quarter[29]. - Noninterest-bearing deposits represented 20.2% of total deposits at June 30, 2024, compared to 20.1% at March 31, 2024, and 22.0% at June 30, 2023, indicating a slight stabilization in deposit composition[44].

Core Points - The company reported a net loss of $11.4 million for Q2 2024, compared to a net loss of $2.9 million in Q1 2024 and $8.6 million in Q2 2023, largely due to a $6.7 million after-tax negative fair value adjustment related to a fintech investment [2][5][21] - The company is winding down its fintech Banking-as-a-Service (BaaS) operations, with BaaS deposits now representing approximately 7% of total deposits, a significant decrease from the previous year [5][9] - A capital raise of $161.6 million was completed through private placements to support business transformation and meet regulatory capital requirements [5][18] Financial Performance - Net interest income for Q2 2024 was $20.1 million, a slight decline from $20.3 million in Q1 2024, primarily due to reduced average balances of interest-earning assets [2][8] - Noninterest income dropped to $0.3 million in Q2 2024 from $7.8 million in Q1 2024, mainly due to a negative fair value adjustment of $8.5 million on an equity investment [3][21] - Noninterest expenses decreased to $29.3 million in Q2 2024 from $32.5 million in Q1 2024, attributed to lower salaries and regulatory remediation expenses [3][21] Asset Quality - The provision for credit losses was $3.1 million in Q2 2024, compared to a recovery of $1.0 million in Q1 2024, reflecting increased reserves for certain purchased loans [3][21] - Nonperforming loans improved to $46.0 million, or 1.57% of total assets, down from $53.2 million, or 1.73%, in the prior quarter [7][27] - The allowance for credit losses as a percentage of total loans held for investment was 1.24% at the end of Q2 2024, down from 1.46% in the previous quarter [3][27] Capital and Liquidity - The company's tangible common stockholders' equity to tangible total assets ratio improved to 10.3% from 5.8% in the prior quarter, reflecting the recent capital raise [3][27] - As of June 30, 2024, the bank's tier 1 leverage ratio and total risk-based capital ratio exceeded the minimum capital ratios set forth in the Consent Order [3][18] - Total assets decreased to $2.93 billion from $3.08 billion in the prior quarter, as the bank reduced assets to meet liquidity needs [3][9]

Core Points - A lawsuit is pending for investors in Blue Ridge Bankshares, Inc. (NYSE: BRBS) shares, seeking to recover losses due to alleged misleading statements and undisclosed errors in financial statements [1][2] - The lawsuit claims that Blue Ridge Bankshares will need to restate its financial statements from March 10, 2023, to October 31, 2023, which has led to material misrepresentation of the company's business and operations [2] - Investors who purchased shares prior to March 2023 and continue to hold them have options to seek assistance from the Shareholders Foundation [4] Company Information - Blue Ridge Bankshares, Inc. is facing legal challenges related to its financial disclosures, which may impact investor confidence and the company's market performance [2] - The Shareholders Foundation, Inc. provides services related to shareholder issues, including monitoring legal actions and informing investors about securities class actions [3]

Financial Performance - The company reported a net loss of $2,893 thousand for the three months ended March 31, 2024, compared to retained earnings of $33,157 thousand at the end of the previous period[83]. - Net loss for the three months ended March 31, 2024, was $2,893,000, resulting in a basic and diluted loss per share of $0.15[211]. - Net interest income for the three months ended March 31, 2024, was $20,723,000, after a provision for credit losses of $1,000,000[212]. - Total noninterest income for the three months ended March 31, 2024, was $7,825,000[212]. - Total noninterest expense for the three months ended March 31, 2024, was $32,474,000[212]. Asset and Liability Changes - As of March 31, 2024, total assets decreased to $3,076,187 thousand from $3,117,554 thousand as of December 31, 2023, representing a decline of approximately 1.3%[78]. - The company’s total liabilities decreased to $2,895,281 thousand from $2,931,565 thousand, a decline of approximately 1.2%[78]. - Stockholders' equity decreased to $180,906 thousand from $185,989 thousand, reflecting a decline of approximately 2.3%[78]. - The company’s cash and due from banks increased to $117,464 thousand from $110,491 thousand, an increase of approximately 6.5%[78]. Deposits and Loans - Total deposits decreased to $2,465,776 thousand, down from $2,566,032 thousand, a reduction of about 3.9%[78]. - Loans held for investment net of deferred fees and costs decreased to $2,359,064 thousand from $2,395,054 thousand, a decline of approximately 1.5%[78]. - The company reported total loans of $2,318,432 thousand as of March 31, 2024, a decrease from $2,394,089 thousand as of December 31, 2023, representing a decline of approximately 3.2%[122]. - The total loans past due (30-59 days) were reported at $19,976 thousand as of March 31, 2024, compared to $14,282 thousand as of December 31, 2023, marking an increase of approximately 40.5%[122]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses decreased to $35,025 thousand from $35,893 thousand, a reduction of about 2.4%[78]. - The total nonaccrual loans amounted to $50.9 million as of March 31, 2024, with $48.4 million classified as having an allowance for credit losses (ACL)[106]. - The company is actively monitoring loans classified as Risk Grade 5 (Watch) and Risk Grade 7 (Substandard) for potential financial distress among borrowers[126][127]. - The company maintained no loans classified as loss (risk grade 9) as of March 31, 2024[157]. Securities and Investments - The company pledged securities with a par value of $69.0 million as collateral for the Bank Term Funding Program established by the Federal Reserve[97]. - The company’s securities available for sale at fair value decreased to $314,394 thousand from $321,081 thousand, a decrease of about 2.1%[78]. - As of March 31, 2024, the total amortized cost of the company's securities was $375.9 million, with a fair value of $314.4 million, indicating a decrease in fair value of approximately 16.3%[98]. - The company holds investments in early-stage focused investment funds totaling $26.6 million as of March 31, 2024, down from $29.5 million at December 31, 2023[101]. Capital and Regulatory Compliance - The Bank's total risk-based capital was $270.2 million, with a leverage ratio of 10.25% and a total capital ratio of 13.00%[186]. - The Bank did not meet the minimum capital requirements of a leverage ratio of 10.00% and a total capital ratio of 13.00% as of March 31, 2024, and December 31, 2023[184]. - The company received $100.0 million from a private placement, which is assumed to be contributed as tier 1 capital to the bank[218]. - The company plans to use net proceeds from a private placement to reposition business lines and enhance capital levels[112]. Legal and Settlement Matters - The company has agreed to a settlement payment of $6.0 million related to the VCB ESOP litigation, with $5.95 million due after final court approval[215]. - The company believes the claims from a purported class action lawsuit are without merit and has not accrued any loss for this lawsuit as of March 31, 2024[214]. - The court granted preliminary approval of the settlement agreement on February 22, 2024, with a final hearing scheduled for early June 2024[215].

Financial Performance - Net interest income for Q1 2024 was $20.3 million, a decline of $1.4 million from the prior quarter, with a net interest margin of 2.75% compared to 2.92% in Q4 2023[19][26] - Noninterest income increased to $7.8 million in Q1 2024, up from $4.1 million in the prior quarter, primarily due to fair value adjustments on mortgage servicing rights[22][28] - The company reported a net loss of $2.9 million, or $0.15 per diluted common share, an improvement from a net loss of $5.8 million, or $0.30 per diluted common share, in the prior quarter[34][38] - Noninterest expense rose to $32.5 million in the first quarter of 2024, an increase of $1.9 million from the prior quarter, primarily due to higher salaries and employee benefits[44] - The company reported a net loss of $2.893 million in Q1 2024, an improvement from a net loss of $5.759 million in Q1 2023[63] - The return on average assets improved to -0.37% in Q1 2024 from -0.73% in Q1 2023[63] - The efficiency ratio improved to 115.3% in Q1 2024, compared to 118.2% in Q1 2023[63] Asset Quality - The recovery of credit losses was $1.0 million in Q1 2024, compared to a provision for credit losses of $2.8 million in the prior quarter[8][27] - Nonperforming loans improved to $53.2 million, or 1.73% of total assets, down from $63.1 million, or 2.02% of total assets, in the prior quarter[16] - The allowance for credit losses as a percentage of total loans held for investment was 1.46% at quarter end, compared to 1.48% in the prior quarter[17] - Nonperforming assets to total assets ratio improved to 1.73% in Q1 2024, down from 2.02% in Q1 2023[64] - Nonperforming loans to total assets improved to 1.73% from 2.63% in the previous quarter, indicating a positive trend in asset quality[74] Deposits and Loans - Total deposit balances decreased by $100.3 million from the prior quarter, primarily due to a decline in fintech-related balances of $162.9 million[20] - Total deposits were $2.47 billion at March 31, 2024, a decrease of $100.3 million from the prior quarter and a decrease of $295.3 million from the year-ago period[52] - Fintech-related deposits decreased to $303.0 million at March 31, 2024, down from $465.9 million in the prior quarter, representing 12.3% of total deposits[42] - Loans held for investment were $2.39 billion, a decrease of $36.9 million from the prior quarter, as the bank reduced assets to meet liquidity needs[21][30] - The held for investment loan to deposit ratio was 97.1% at March 31, 2024, compared to 94.7% in the prior quarter and 88.8% a year ago[53] - Total deposits decreased to $2.466 billion as of March 31, 2024, from $2.566 billion a year earlier, a decline of 3.9%[63] - The company reported a net loan balance of $2,359,064 thousand, down from $2,395,054 thousand, indicating a decrease of about 1.51%[72] Capital and Funding - The company completed a private placement capital raise of $150 million to support business transformation efforts[2] - The company aims to reposition business lines and enhance capital levels in line with the minimum capital ratios set forth in the Consent Order[37] - The cost of funds increased to 3.03% in the first quarter of 2024, up from 2.91% in the prior quarter and 2.11% in the year-ago period[47] - FHLB borrowings increased to $280,000 thousand from $210,000 thousand, showing a significant rise of 33.33%[72] - The total stockholders' equity decreased to $180,906 thousand from $185,989 thousand, a decline of approximately 2.90%[72] - Tangible common equity was reported at $176,993 thousand, a slight decrease from $181,810 thousand in the previous quarter[75] - Book value per common share decreased to $9.24 from $9.69, reflecting a decline of approximately 4.65%[75] Interest Income - Total interest income was $42.5 million for the first quarter of 2024, slightly down from $43.2 million in the fourth quarter of 2023[45] - Interest income for Q1 2024 was $42.531 million, a decrease from $43.160 million in Q1 2023, representing a decline of 1.5%[63] - Net interest income after provision for loan losses increased to $21.349 million in Q1 2024 from $18.993 million in Q1 2023, a growth of 12.0%[63] - The yield on average loans held for investment was 6.29% for the first quarter of 2024, compared to 6.31% in the prior quarter and 5.88% a year ago[45] - Interest and fee income from fintech partnerships was approximately $1.7 million in Q1 2024, compared to $1.5 million in Q1 2023[66]